Vermont Code of Rules, Agency 03 — Office of the State Treasurer

Subagency 000 GENERAL

Chapter 001 COPYRIGHTED COMPOSITIONS

03-001 Code Vt. R. 03-000-001-X COPYRIGHTED COMPOSITIONS

Section 1 Definitions

For purposes of Chapter 207 of Title 32 ("this Chapter"):

(a) "Person" shall include an individual, partnership, society, association, joint stock company, corporation, public corporation or public authority, estate, receiver, trustee, assignee, referee, and any other person acting in a fiduciary or representative capacity, whether appointed by a Court or otherwise, and any combination of the foregoing.

(b) "State Treasurer" shall include the State Treasurer, or any officer, employee, designee or agent, including employees of other State departments or agencies temporarily assigned to the State Treasurer.

(c) "Tax" shall include the liability for all amounts determined to be owing the State of Vermont under this chapter.

Section 2 Books & Records Required to Be Kept

(a) Every person liable for tax under this Chapter shall keep adequate and complete records of his business in this State. These records must clearly indicate:

1. Each account located within this State.

2. Total receipts from each account located within this State.

These records must include the normal books of account ordinarily maintained by the average prudent businessman engaged in the activity in question together with all documents of original entry supporting the entries in the books.

(b) Any books and records required to be kept under this chapter or requested by the State Treasurer shall be made available for examination by the State Treasurer at any time or at any place designated by the State Treasurer. No witness fees or mileage shall be paid to any person whose liability for tax is being investigated, or to any person who has an outstanding liability for tax, whether or not such liability is being appealed.

Section 3 Audits

The State Treasurer may conduct audits of books and records of any person who may be liable for tax under this chapter, or who may be making payments upon which the tax might be imposed.

Section 4 Determination of Tax

(a) If the State Treasurer finds that any taxpayer has failed to discharge in full the amount of any tax liability incurred under this chapter, or that a penalty or interest should be assessed, he shall notify the taxpayer of the deficiency or assess the penalty or interest, as the case may be, by mail. The State Treasurer shall determine the amount of tax due from any information available. If necessary, the tax may be estimated on the basis of external indices, such as gross market percentages, national trade publication statistics or information, or any other information deemed appropriate by the State Treasurer.

(b) The State Treasurer may notify a taxpayer of a deficiency with respect to the payment of any tax liability, or assess a penalty or interest with respect thereto, at any time within three years after the date that tax liability was originally required to be paid under this chapter.

(c) Notwithstanding subsection (b) of this section:

(1) If the taxpayer fails to file a proper return with respect to any tax liability at the time prescribed for its filing, the notification or assessment may be made at any time before the end of three years after the taxpayer files such a return;

(2) If the deficiency is caused by reason of fraud or the willful intent of the taxpayer to defeat or evade this chapter, the notification or assessment may be made at any time;

(3) If the taxpayer and the State Treasurer agree, the notification or assessment may be made at any time before the date so agreed upon.

(d) Upon receipt of a notice of deficiency or assessment of penalty or interest under this chapter, the taxpayer may, within thirty days after the date of the notice or assessment, petition the State Treasurer in writing for a determination concerning the deficiency, penalty or interest.

(e) Any hearing granted by the State Treasurer under this chapter shall be a contested case under Chapter 25 of Title 3. A taxpayer may appeal a determination by the State Treasurer concerning a notice of deficiency, an assessment of penalty or interest, or a claim to refund, to the Washington Superior Court or the county court of the county in which the taxpayer resides or has a place of business.

Section 5 Refund Notice

(a) At any time within three years after the date a return is required to be filed under this chapter, a taxpayer may petition the State Treasurer for the refund of all or any part of the amount of tax paid with respect to the return. Unless the period is extended by agreement of the State Treasurer and the taxpayer, the State Treasurer shall thereafter, upon notice to the taxpayer, hold a hearing on the claim and shall notify the taxpayer of his determination of the claim within thirty days of the hearing.

(b) If the State Treasurer determines, on a petition for refund or otherwise, that a taxpayer has paid an amount of tax under this chapter which, as of the date of the determination, exceeds the amount of tax liability owing from the taxpayer to the state, with respect to the current and all preceding taxable years, under any provision of this title, the State Treasurer shall forthwith refund the excess amount to the taxpayer together with interest at the rate of six percent per annum. That interest shall be computed from the date of the excess payment, or from the date the return was due with respect to which the excess payment was made, whichever is the later date.

(c) Any notice by the State Treasurer under this chapter may be given by mailing it to the person for whom it is intended in a postpaid envelope addressed to the person at the address given in the last return filed by him under this chapter or in any application made by him under this chapter or if no return has been filed or application made, then to any address obtainable. The mailing of the notice shall be presumptive evidence of its receipt by the person to whom it is addressed. Any period of time which is determined under this chapter by the giving of notice shall commence to run from the date of mailing of the notice. "The date of mailing" shall be the later of the date written upon the notice, or the date the notice is postmarked.

Section 6 Appeals

Notice of an appeal must be given in writing by the person appealing to the State Treasurer, 133 State Street, Montpelier, Vermont with specific reference to the assessment from which the person appeals.

Section 7 Payment and Collection

(a) Upon notification to a taxpayer of any deficiency, and upon assessment against the taxpayer of any penalty or interest, under this chapter, the amount of the assessment shall be payable forthwith and the amount of the deficiency and assessment shall be collectible by the State Treasurer thirty days after the date of the notification or assessment.

(1) If within thirty days of the notification of deficiency or assessment the taxpayer files a notice of appeal to the State Treasurer, collection shall be stayed until thirty days after the notification of the taxpayer of the determination; and

(2) If within thirty days of the notification of determination the taxpayer files a notice of appeal to a Superior Court, collection shall be stayed pending judgment of the court upon the appeal; and

(3) Under such further circumstances and upon such terms as the State Treasurer prescribes.

(b) Notwithstanding subsection (a) of this section, the State Treasurer, if he believes the collection from a taxpayer of any deficiency, penalty or interest to be in jeopardy, may demand, in writing, that the taxpayer pay the deficiency, penalty or interest forthwith. The demand may be made concurrently with, or after, the notice of deficiency or the assessment of penalty or interest given to the taxpayer. The amount of deficiency, penalty or interest shall be collectible by the State Treasurer on the date of the demand, unless the taxpayer files with the State Treasurer a bond in an amount equal to the deficiency, penalty or interest sought to be collected as security for such amount as finally may be determined. In the event that it is finally determined that the taxpayer was not liable for the amount of the deficiency, penalty or interest referred to in any demand under this subsection, the State Treasurer shall reimburse the taxpayer, promptly upon such determination, for the reasonable cost to the taxpayer of any bond obtained by him.

Section 8 Actions

The State Treasurer shall enforce this chapter by all means available to him, including actions in any court to enforce this chapter and collect the tax.

Section 9 Remedy Exclusive; Determination Final

(a) The exclusive remedy of a taxpayer with respect to the refund of monies paid in connection with a return filed under this chapter shall be the petition for refund and the appeal from an adverse determination of the petition for refund. The exclusive remedy of a taxpayer with respect to a notification of deficiency or assessment of penalty or interest shall be the petition for determination of the deficiency or assessment and the appeal from an adverse determination of deficiency or assessment.

(b) Upon the failure of a taxpayer to appeal from a notice of deficiency or assessment or to appeal from a determination of a deficiency or assessment of tax liability, the taxpayer shall be bound by the terms of the notification, assessment, or determination, as the case may be. The taxpayer shall not thereafter contest, either directly or indirectly, the tax liability as therein set forth, in any proceeding including, without limitation, a proceeding upon a claim of refund of all or any part of any payment made with respect to the tax liability, or a proceeding for the enforcement or collection of all or any part of the tax liability.

Section 10 Other Agencies

The State Treasurer shall cooperate with other agencies of the State of Vermont to enforce this chapter. He may, in his discretion, conduct joint audits with other agencies with jurisdiction over other potential liabilities of the same person.

Date: 9-7-78

Emory A. Hebard

State TreasurerStatutory Authority: 32 V.S.A. Chapter 207

History

• Effective Date: September 12, 1978 (Secretary of State Rule Log #78-91)

Chapter 002 VERMONT PENSION INVESTMENT COMMITTEE (VPIC) STANDARDS OF CONDUCT

03-002 Code Vt. R. 03-000-002-X VERMONT PENSION INVESTMENT COMMITTEE (VPIC) STANDARDS OF CONDUCT

Section 1 Statement of Purpose

A. The VPIC is responsible for the investment of the assets of the State Teachers' Retirement System of Vermont, the Vermont State Employees' Retirement System, and the Vermont Municipal Employees' Retirement System pursuant to 3 V.S.A. § 472, 16 V.S.A. § 1943, and 24 V.S.A. § 5063. The VPIC is obligated to strive to maximize total return on investment, within acceptable levels of risk for public retirement systems, in accordance with the standards of care established by the prudent investor rule under 14A V.S.A. § 902.

B. VPIC Members must maintain high ethical and moral standards both professionally and personally in order to maintain and promote public confidence in the integrity of the decisions of the VPIC relating to investment of the Retirement Systems' assets. The ability to carry out these responsibilities may be impaired whenever a real or apparent conflict of interest exists between the private interest of a VPIC Member and his or her official responsibilities.

C. In recognition and consideration of their responsibilities and obligations as VPIC members and to further the goal of protection of the Retirement Systems' members, beneficiaries, Trustees and employees from the damage that could result from real or apparent conflicts of interest, the following Standards of Conduct are hereby adopted to assist and guide VPIC Members and employees in the exercise of professional and moral judgment.

D. This regulation is intended to implement the standards of conduct provisions of 3 V.S.A. § 472(d); 16 V.S.A. § 1943(d); and 24 V.S.A. § 5063(e).

Section 2 Authority

This regulation is adopted pursuant to 3 V.S.A. § 471(d) and § 472(d); 16 V.S.A. § 1942(f) and § 1943(d); and 24 V.S.A. § 5062(d).

Section 3 Applicability

A. These standards of conduct shall apply to the Members and Employees of the VPIC.

B. These Standards of Conduct are intended to supplement, and not to replace, other State and federal laws. Where this code is less restrictive than another law, executive order, or regulation that applies to the conduct and activities of VPIC Members and employees of the VPIC, such other stricter terms shall apply. Where this code is more restrictive than any other applicable law, executive order or regulation, the stricter standards of this code shall apply.

Section 4 Definitions

For the purposes of these Standards of Conduct, the following words have the following meanings:

A. "Benefit" means any gain, favor, profit, reward, value, accommodation or other advantage, including, but not limited to, acceptance of preferential pricing from Vendors or Potential Vendors with respect to brokerage accounts or investment fees and a benefit to any other person in whose welfare the beneficiary is interested.

B. "Conflict of Interest" means any personal or financial interest of a VPIC Member, or such an interest, known to the VPIC Member, of a member of his or her immediate family, household member, or business associate in the outcome of any particular matter pending before the VPIC. A conflict of interest includes, but is not limited to, those defined in sub sections 5 and 8.

C. "Gift" means any form of compensation or anything of value, tangible or intangible, and includes, but is not limited to, meals, alcoholic beverages, travel fare, room and board, gratuities, entertainment, cash, goods or services. "Gift" shall not include the nominal value of free conference registration offered by a Vendor or Potential Vendor and approved by the VPIC.

D. "Interest" means any personal or financial interest except an interest that is incidental to the person's membership in a Retirement System or participation in a plan administered by a Retirement System that is no greater than that of other persons generally affected by the outcome of the matter.

E. "Potential Vendor" means any Vendor that has bid on a VPIC contract and any Vendor that is in the business of providing goods or services of the type routinely purchased by the VPIC, whether or not it has bid on a VPIC contract, including but not limited to administrative, investment, financial, banking, and consulting services.

F. "Retirement Systems" means the State Teachers' Retirement System of Vermont, the Vermont State Retirement System, and the Vermont Municipal Employees' Retirement System and any individual municipalities that have been allowed to invest their retirement funds with the VPIC.

H. "VPIC Member" means any person who serves as a VPIC Member or any person who serves as the designee of a VPIC Member or as an Alternate to a VPIC Member.

I. "Vendor" means a natural person, a corporation, a partnership, an association, a joint-stock company, a trust, an unincorporated organization, a limited liability company, or a limited liability partnership that performs services for the VPIC for direct or indirect compensation. The term includes affiliated entities and trade organizations.

Section 5 Prohibited Conduct Conflicts of Interest

The following conduct by a VPIC Member or an Employee of the VPIC creates either an actual or potential conflict of interest or the appearance of a conflict of interest and is prohibited:

A. Solicitation or acceptance of a gift or benefit from any Vendor or potential Vendor except in accordance with Section 9(A).

B. Solicitation or acceptance of a gift or benefit from any person or entity with a personal or financial interest in the outcome of a particular matter pending before the VPIC.

C. The purchase, sale, exchange, or lease of property to or from the VPIC.

D. Acting upon or providing to any person any information relating to the investment of the VPIC's assets prior to that information becoming public record.

E. Acceptance of a fee, gift or other benefit for providing information relating to the VPIC and its assets, obtained as a VPIC Member, whether insider or otherwise, to any other person.

F. Participation in any breach of fiduciary duty by another person subject to this code, participation in concealing such breach, or knowingly or negligently permitting such breach to occur.

G. Participation in a violation of these Standards of Conduct by another person subject to this code, participation in concealing such violation, or knowingly or negligently permitting such violation to occur.

H. Acceptance of money, gifts or benefits in connection with any campaign for public office from any Vendor or potential Vendor of the VPIC.

I. Any direct interest in the gains or profits of any investment made by the VPIC.

J. Direct or indirect use of the gains or profits of any investments made by the VPIC, for himself or as an agent, for any purpose except to make current and necessary payments as are authorized by the VPIC.

K. Becoming an endorser or surety, or in any manner an obligor, for money loaned to or borrowed from the VPIC.

Section 6 Disclosure

A. To the extent (i) VPIC investment decisions continue to be made in public session of warned public meetings; (ii) certain VPIC investment data is available on the Office of the Treasurer's website; and (iii) all VPIC assets are managed, at the discretion of external investment managers, within stated guidelines, there is very little, if any, investment information to which VPIC Members have access which is not also generally available to members of the public. Vermont State law does not prohibit VPIC Members from investing in the same investments in which the VPIC invests, or with Vendors except as may be otherwise inconsistent with this rule. Likewise, there is no State law reporting requirement regarding the personal investment holdings of the VPIC Members.

VPIC Members are expected to avoid personal investment activity which creates either an actual or potential conflict of interest or the appearance of a conflict of interest. On an annual basis, VPIC Members shall execute the attached "Standards of Conduct Disclosure for VPIC Members."

B. VPIC Members shall disclose to the VPIC all actual or potential conflicts of interest and appearances of a conflict of interest as soon as such actual or potential conflict or appearance of a conflict becomes known.

C. Employees of the VPIC shall disclose all actual and potential conflicts of interest and appearances of a conflict of interest to the VPIC as soon as such actual or potential conflict or appearance of a conflict becomes known.

Section 7 Recusal

No VPIC Member shall knowingly participate in a decision or action by the VPIC in which he or she has an actual or potential conflict of interest.

Section 8 Travel, Conferences and Meetings

A. The reasonable and necessary expenses of travel, lodging, meals, and incidentals for a VPIC Member or Employee traveling on behalf of the VPIC, or in his or her capacity as a VPIC Member or Employee, or because of his or her position as a VPIC Member or Employee, shall be paid pro rata by the Retirement Systems if approved prior to the travel by the VPIC. The agenda, written materials pertaining to the event, when available, an estimate of the cost of the trip and the names of all sponsors of the event to be attended shall be provided to the VPIC at the time approval is requested. If approval is granted, the VPIC Member or Employee shall report to the VPIC, at the next scheduled meeting that he or she attends, on the content of the event and whether a Vendor or Potential Vendor attempted to pay any expenses of the VPIC Member or Employee or sponsored any function or event in which the VPIC Member or Employee participated.

B. All expenses related to the travel of a spouse, family or household member, or other invitee of a VPIC Member, shall be paid by the VPIC Member or invitee.

C. Nothing in this policy is intended to limit or restrict travel to, and attendance at, an event by a VPIC Member or Employee when attendance is in a capacity other than as a VPIC Member or Employee. When traveling in a capacity other than as a VPIC Member or Employee, a VPIC Member or Employee shall not solicit or receive any gift including meals, alcoholic beverages, travel fare, room and board, or any other thing of value from a Vendor or Potential Vendor or from the organizers of an event sponsored by one or more Vendors or Potential Vendors, except in accordance with Section 9(A).

Section 9 Gifts and Gratuities

A. All VPIC Members shall refuse to accept any gift that is received from or offered by a Vendor or Potential Vendor or from the organizers of an event sponsored by one or more Vendors or Potential Vendors, except for the following:

1. Items or products of de minimis value of $ 10.00 or less; provided, however, that ;

2. Items or products donated by a Vendor or Potential Vendor and awarded at a conference attended by a VPIC Member as long as they are offered to participants on a random basis through a drawing, raffle or game of chance and have a value of $ 100.00 or less. Any item accepted under this provision with a value of greater than $ 25.00 shall be reported by the VPIC Member pursuant to section 9(B).

3. Food or refreshment offered during a meeting or conference that appears on the agenda, is an integral part of the event and is offered to all in attendance at the event and taken in a group setting.

4. Books, conference materials and other educational materials offered during a meeting or conference to all in attendance at the event.

B. VPIC Members who receive any item or product from a Vendor or Potential Vendor of more than de minimis value shall report the following to the State Treasurer's Office:

-- a description of the product,

-- the date of receipt,

-- the identity of the sender or donor,

-- the item's approximate value, and

-- the disposition of the item by the VPIC Member.

If the item is not perishable, the item shall be promptly returned to the sender. All perishable items shall be donated to a suitable charity or placed in a publicly accessible area for general enjoyment.

C. The State Treasurer's Office shall record the information specified in section 9(B) for public inspection.

Section 10 Initiation or Continuation of Contractual Relationship

A. From the time the VPIC has decided to obtain bids or proposals for goods or services, or from the time the VPIC has under consideration the decision to renew an existing contract, and until a final contract is approved:

1. No VPIC Member shall have any direct or indirect communication about the bid or proposal with any Vendor or Potential Vendor seeking such new or continued contractual relationship with the VPIC except at an open meeting of the VPIC.

2. A VPIC Employee shall limit his or her direct or indirect communication about the bid or proposal with any Vendor or Potential Vendor during this time period to that necessary for administration of existing contracts or in connection with administration of the bid or proposal process. All communications shall be documented by the VPIC Employee and maintained as a record of the Office of the State Treasurer.

3. A VPIC Member who receives any direct or indirect communication outside of a meeting of the VPIC from any Vendor or Potential Vendor seeking a new or continued contractual relationship with the VPIC shall notify the VPIC of the communication prior to the VPIC's final approval of a contract.

B. The VPIC shall require that all Vendors or Potential Vendors seeking a new or continued contractual relationship with the VPIC give written disclosure to the VPIC of all communications or contacts with any VPIC Member in the preceding year and any expenditures relating to those communications or contacts. Disclosure will be required before final interviews by the VPIC or, if there are no final interviews, before approval of a final contract.

C. The VPIC may disqualify a Vendor or Potential Vendor from ongoing business or potential business for any communication contrary to the provisions of this section, for attempting to pay any expenses of a Trustee or employee contrary to section 8(A), or for any other conduct having the potential to create a conflict of interest or to cause a breach of fiduciary duty.

D. This regulation shall be included as an attachment to all requests for proposals, bidding documents and contracts of the VPIC. The VPIC shall require all consultants who conduct manager searches or other vendor searches on behalf of the VPIC to provide a copy of this policy to all Vendors or Potential Vendors during the search process.

Section 11 Sanctions

A. The VPIC may take such actions it deems appropriate if a VPIC Member fails to comply with the provisions of this rule including, but not limited to:

1. A recommendation that a VPIC Member refrain from participation and voting in a matter or matters pending before the VPIC.

2. A recommendation that a VPIC Member repay or return any gift or benefit received by a VPIC Member from a Vendor or potential Vendor.

3. A recommendation that a VPIC Member refrain from particular actions that the VPIC determines constitute an actual or potential conflict and are detrimental to public confidence in the VPIC's integrity.

B. The VPIC may recommend that the appropriate appointing authority take appropriate disciplinary action if a VPIC Member fails to comply with the provisions of this rule.

VERMONT PENSION INVESTMENT COMMITTEE

Standards of Conduct Disclosure for VPIC Members

This disclosure is for the period January 1, 20__ to December 31, 20__ and needs to be filed with the Vermont Pension Investment Committee (VPIC). VPIC members and alternates are required to complete this disclosure in accordance with the VPIC Standards of Conduct adopted ______________________. All capitalized terms used in this form shall have the meaning set forth in the Standards of Conduct.

Please ensure full disclosure in the space provided for explanation or attach a separate sheet. This disclosure must be completed and returned electronically or via U.S. post to the attention of the Office of the Treasurer of the State of Vermont, 109 State Street, 4 [th ] Floor, Montpelier, VT 05609, no later than February 15, 20__.

PLEASE DISCLOSE ALL CONFLICTS OF INTEREST, POTENTIAL CONFLICTS OF INTEREST, OR SITUATIONS THAT COULD REASONABLY BE PERCEIVED AS CREATING CONFLICTS OF INTEREST.

___ None to report.

I certify that I have read the VPIC Standards of Conduct. I further certify that I am in full compliance with the Standards of Conduct.

By:______________________________________

Name:___________________________________

Date:____________________________________

History

• STATUTORY AUTHORITY: 3 V.S.A. §§ 471, 472; 16 V.S.A. §§ 1942, 1943; 24 V.S.A. § 5062
• EFFECTIVE DATE: September 25, 2012 Secretary of State Rule Log #12-033

Subagency 030 STATE TEACHER'S RETIREMENT SYSTEM

Chapter 003 REGULATION 2000-2, ELECTION OF ACTIVE TEACHERS TO THE VERMONT STATE TEACHERS' RETIREMENT BOARD

03-003 Code Vt. R. 03-030-003-X REGULATION 2000-2, ELECTION OF ACTIVE TEACHERS TO THE VERMONT STATE TEACHERS' RETIREMENT BOARD

Section 1 Purpose

This Regulation is intended to provide rules for the election of active teachers to the Vermont State Teachers' Retirement Board in compliance with Title 16, Chapter 55, Section 1942.

Section 2 Authority

This Regulation is promulgated pursuant to Title 16, Chapter 55, Section 1942(b)(4).

Section 3 Notice

A. At least four months prior to the expiration of the term of a trustee elected by members of the system a notice shall be prepared and distributed by the Executive Secretary of the Board. The notice shall be mailed to each member who is eligible to vote.

B. The notice shall:

1. Advise the member of the election;

2. State the position and term to be filled;

3. Notify the member that the nominating petition of a member for the position of trustee must include a statement presenting the qualifications of the member for the position of Trustee, and that this statement must be signed by at least twenty-five (25) members of the system. The Retirement Office shall make forms for this purpose available to members. These forms will be available from the Retirement Office upon request.

4. Include any other information regarding a particular election as specified by the Board of Trustees.

Section 4 Nominating Petitions

A. Any nominating petition of a member to the position of Trustee must be received in the State Treasurer's Retirement Office at or before four o'clock P.M. on April 15 or the first business day thereafter. No nominating petition will be received by the Executive Secretary after that date.

B. The Executive Secretary shall send a notice confirming the receipt of a petition within five business days of the receipt of the petition. The confirmation notice shall:

1. Certify that the petition has been accepted, or

2. Explain why the petition is incomplete. A complete amended petition must be received in the Retirement Office at or before four o'clock P.M. on the business day prior to May 1.

Section 5 Ballots

A. As soon as possible after May 1 but not later than May 7 the Executive Secretary shall circulate to the members of the system a ballot on which shall be listed the names of all members duly nominated, as prescribed above, as candidates for the position of Trustee. The ballot shall be accompanied by a brief biographical sketch and statement of qualification provided by each nominee to a maximum length established by the Executive Secretary. Instructions for completion and filing of the ballot will be included with the ballot. In the event that no more than one (1) member is duly nominated to the position of Trustee in accordance with Section 4, the Board of Trustees shall declare the member so nominated to be elected to the position of Trustee and the Executive Secretary shall not circulate ballots as herein prescribed. Candidates' ballot positions shall be determined by a drawing conducted at a time and place determined by the Executive Secretary. The Retirement Office shall mail notice of the time and place of the drawing to all candidates at least ten business days before the drawing. Candidates may attend the drawing.

Section 6 Members Eligible to Vote

A. A master list of members shall be recorded and stored at the Retirement Office. The list shall be available for review at the Retirement Office by any member. Any member may raise challenges or questions concerning the eligibility of voters. Any challenges or questions concerning eligible voters shall be made prior to the close of the voting deadline. Failure to challenge the list or any part of it in writing prior to the voting deadline shall disallow any challenges or questions raised after the close of voting.

B. The ballot of each voter must be received in the Retirement Office or before four o'clock P.M on June 7 or the first business day thereafter and no ballot shall be received by the Executive Secretary after that date.

C. The Executive Secretary shall verify that each ballot has been submitted by a voter included in the master list of members. In cases where such a determination cannot be made the ballot shall be declared invalid. The verification of ballots shall not compromise the secrecy of votes cast.

Section 7 Counting Ballots

A. All ballots received in accordance with the preceding Sections 5 and 6 shall be counted in the Retirement Office within five business days following the close of balloting. Ballots shall be counted by a committee of three members of the System appointed by the Executive Secretary subsequent to the close of nominations received in accordance with Section 4 above. The candidate receiving the greatest number of votes will be considered to be elected to the position of Trustee for a four-year term beginning on July 1.

B. In the event of a tie vote for the position of Trustee, a subsequent election would be held between the candidates involved in the tie.Statutory Authority: 16 V.S.A. C. 55, § 1942(b)(4)

History

• Effective Date: October 9, 2000 (Secretary of State Rule Log #00-55)

Chapter 004 REGULATION 2001-01, STANDARDS OF CONDUCT (STATE TEACHERS' RETIREMENT SYSTEM OF VERMONT, VERMONT STATE RETIREMENT SYSTEM, AND VERMONT MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM

03-004 Code Vt. R. 03-030-004-X REGULATION 2001-01, STANDARDS OF CONDUCT (STATE TEACHERS' RETIREMENT SYSTEM OF VERMONT, VERMONT STATE RETIREMENT SYSTEM, AND VERMONT MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM

Section 1 STATEMENT OF PURPOSE

A. The Boards of Trustees of the State Teachers' Retirement System of Vermont, the Vermont State Retirement System, and the Vermont Municipal Employees' Retirement System are entrusted with the investment of public pension funds of the retirement Systems and are obligated to safeguard the funds for the benefit of members and beneficiaries. The Trustees are obligated to administer the Systems efficiently and effectively in the interests of the plans' members and beneficiaries so as to avoid waste, mismanagement, abuse, and misuse of influence. The Trustees of these public pension Systems have a duty to administer and provide benefits in a responsible manner without causing an undue burden on their members or Vermont taxpayers.

B. Trustees and employees of the Boards must maintain high ethical and moral standards both professionally and personally in order to maintain and promote public confidence in the integrity of the decisions of the Boards of Trustees relating to administration of the plans and investment of the Systems' assets. The ability to carry out these responsibilities may be impaired whenever a real or apparent conflict of interest exists between the private interest of a Trustee or Board employee and his or her official responsibilities.

C. In recognition and consideration of their responsibilities and obligations as Trustees and to further the goal of protection of the Systems' members, beneficiaries, Trustees and employees from the damage that could result from real or apparent conflicts of interest, the following Standards of Conduct are hereby adopted to assist and guide Trustees and Board employees in the exercise of professional and moral judgment.

D. This regulation is intended to implement the standards of conduct provisions of 3 V.S.A. § 472(d); 16 V.S.A. § 1943(d); and 24 V.S.A. § 5063(e).

Section 2 AUTHORITY

This regulation is adopted pursuant to 3 V.S.A. § 471(d) and § 472(d); 16 V.S.A. § 1942(f) and § 1943(d); and 24 V.S.A. § 5062(d).

Section 3 APPLICABILITY

A. These standards of conduct shall apply to the Trustees of the State Teachers' Retirement System of Vermont, the Vermont State Retirement System, and the Vermont Municipal Employees' Retirement System.

B. These standards shall apply to employees of the Boards of Trustees.

C These Standards of Conduct are intended to supplement, and not to replace, other state and federal laws. Where this code is less restrictive than another law, executive order, or regulation that applies to the conduct and activities of Trustees and employees of the Boards, such other stricter terms shall apply. Where this code is more restrictive than any other applicable law, executive order or regulation, the stricter standards of this code shall apply.

Section 4 DEFINITIONS

For the purposes of these standards of conduct, the following words have the following meanings:

A. "Benefit" means any gain, favor, profit, reward, value, accommodation or other advantage, including a benefit to any other person in whose welfare the beneficiary is interested.

B. "Conflict of Interest" means any personal or financial interest of a Trustee, or such an interest, known to the Trustee, of a member of his or her immediate family, household member, or business associate in the outcome of any particular matter pending before the Board. A conflict of interest includes, but is not limited to, those defined in subsection 5.

C. "Employee of the Boards" means a person employed by a Board or Boards of Trustees. Employees of the Vermont State Treasurer's Office shall not be considered employees of the Boards.

D. "Gift" means any form of compensation or anything of value, tangible or intangible, and includes, but is not limited to, meals, alcoholic beverages, travel fare, room and board, gratuities, entertainment, cash, goods or services.

E. "Interest" means any personal or financial interest except an interest that is incidental to the person's membership in the System or participation in a plan administered by the System that is no greater than that of other persons generally affected by the outcome of the matter.

F. "Potential Vendor" means any Vendor that has bid on a System contract and any Vendor that is in the business of providing goods or services of the type routinely purchased by the System, whether or not it has bid on a System contract, including but not limited to administrative, investment, financial, banking, and consulting services.

G. "Systems" means the State Teachers' Retirement System of Vermont, the Vermont State Retirement System, and the Vermont Municipal Employees' Retirement System.

H. "Trustee" means any person who serves as a Trustee or any person who serves as the designee of an ex-officio Trustee or as an alternate to a Trustee of any of the Systems.

I. "Vendor" means a natural person, a corporation, a partnership, an association, a joint-stock company, a trust, an unincorporated organization, a limited liability company, or a limited liability partnership that performs services for the Systems for direct or indirect compensation. The term includes affiliated entities and trade organizations.

Section 5 PROHIBITED CONDUCT: CONFLICTS OF INTEREST

The following conduct by a Trustee or an employee of the Boards creates either an actual or potential conflict of interest or the appearance of a conflict of interest and is prohibited:

A. Solicitation or acceptance of a gift or benefit from any Vendor or potential Vendor except in accordance with Section 9(A).

B. Solicitation or acceptance of a gift or benefit from any person or entity with a personal or financial interest in the outcome of a particular matter pending before the Board.

C. The purchase, sale, exchange, or lease of property to or from the System which he or she serves.

D. Acting upon or providing to any person any information relating to the investment of the System's assets prior to that information becoming public record.

E. Acceptance of a fee, gift or other benefit for providing information relating to the System and its assets, obtained as a Trustee or employee of the Boards, whether insider or otherwise, to any other person.

F. Participation in any breach of fiduciary duty by another person subject to this code, participation in concealing such breach, or knowingly or negligently permitting such breach to occur.

G. Participation in a violation of these Standards of Conduct by another person subject to this code, participation in concealing such violation, or knowingly or negligently permitting such violation to occur.

H. Acceptance of money, gifts or benefits in connection with any campaign for public office from any Vendor or potential Vendor of the System which the Trustee or employee serves.

I. Any direct interest in the gains or profits of any investment made by the Board.

J. Direct or indirect use of the gains or profits of any investments made by the Board, for himself or as an agent, for any purpose except to make current and necessary payments as are authorized by the Board.

K. Becoming an endorser or surety, or in any manner an obligor, for money loaned to or borrowed from the Board.

Section 6 DISCLOSURE

A. A Trustee shall disclose to the Board for the System which he or she serves all actual or potential conflicts of interest and appearances of a conflict of interest as soon as such actual or potential conflict or appearance of a conflict becomes known.

B. Employees of a Board shall disclose all actual and potential conflicts of interest and appearances of a conflict of interest to the Board as soon as such actual or potential conflict or appearance of a conflict becomes known.

Section 7 RECUSAL

No Trustee shall knowingly participate in a decision or action by the Board in which he or she has an actual or potential conflict of interest.

Section 8 TRAVEL, CONFERENCES AND MEETINGS

A. The reasonable and necessary expenses of travel, lodging, meals, and incidentals for a Trustee or employee of a Board traveling on behalf of a Board, or in his or her capacity as a Trustee or employee, or because of his or her position as a Trustee or employee, shall be paid by the System if approved prior to the travel by the Board which the Trustee or employee serves. The agenda, written materials pertaining to the event, when available, an estimate of the cost of the trip and the names of all sponsors of the event to be attended shall be provided to the Board at the time approval is requested. If approval is granted, the Trustee or employee shall report to the Board, at the next scheduled meeting that he or she attends, on the content of the event and whether a Vendor or potential Vendor attempted to pay any expenses of the Trustee or employee or sponsored any function or event in which the Trustee or employee participated.

B. All expenses related to the travel of a spouse, family or household member, or other invitee of a Trustee, shall be paid by the Trustee or invitee.

C. Nothing in this policy is intended to limit or restrict travel to, and attendance at, an event by a Trustee or employee when attendance is in a capacity other than as a Trustee or employee and is related to his or her employment, position, membership or affiliation with another organization or entity. When travelling in a capacity other than as Trustee, a Trustee or employee shall not solicit or receive any gift including meals, alcoholic beverages, travel fare, room and board, or any other thing of value from a Vendor or potential Vendor of services to the System except in accordance with Section 9(A).

Section 9 GIFTS AND GRATUITIES

A. All Trustees and Employees of the Boards shall refuse to accept any gift that is received from or offered by a Vendor or potential Vendor except for the following:

1. Items or products of de minimis value of $ 10.00 or less;

2. Items or products donated by a Vendor or potential Vendor and awarded at a conference attended by a Trustee as long as they are offered to participants on a random basis through a drawing, raffle or game of chance and have a value of $ 100.00 or less. Any item accepted under this provision with a value of greater than $ 25.00 shall be reported by the Trustee pursuant to section 9(B).

3. Food or refreshment offered during a conference that appears on the conference agenda, is an integral part of the conference agenda and is offered to all in attendance at the conference and taken in a group setting.

B. A Trustee or Employee of the Boards who receives any item or product from a Vendor or potential Vendor of more than de minimis value shall report the following to the State Treasurer's Office: a description of the product, the date of receipt, the identity of the sender or donor, the item's approximate value, and the disposition of the item by the Trustee or employee. If the item is not perishable, the item shall be promptly returned to the sender. All perishable items shall be donated to a suitable charity or placed in a publicly accessible area for general enjoyment.

C. The State Treasurer's Office shall record the information specified in section 9(B) for public inspection.

Section 10 INITIATION OR CONTINUATION OF CONTRACTUAL RELATIONSHIP

A. From the time a Board of Trustees has decided to obtain bids or proposals for goods or services, or from the time a Board has under consideration the decision to renew an existing contract, and until a final contract is approved:

1. No Trustee shall have any direct or indirect communication about the bid or proposal with any Vendor or potential Vendor seeking such new or continued contractual relationship with the System except at an open meeting of the Board or an authorized subcommittee of the Board.

2. An Employee of the Board shall limit his or her direct or indirect communication about the bid or proposal with any Vendor or potential Vendor during this time period to that necessary for administration of existing contracts or in connection with administration of the bid or proposal process. All communications shall be documented by the Employee and maintained as a record of the Office of the State Treasurer.

3. A Trustee who receives any direct or indirect communication outside of a meeting of the Board or an authorized subcommittee of the Board with any Vendor or potential Vendor seeking a new or continued contractual relationship with the System shall notify the Board of the communication prior to the Board's final approval of a contract.

B. A Board of Trustees shall require that all Vendors or potential Vendors seeking a new or continued contractual relationship with the System give written disclosure to the Board of all communications or contacts with any Trustees or Employee in the preceding year and any expenditures relating to those communications or contacts. Disclosure will be required before final interviews by the Board or, if there are no final interviews, before approval of a final contract.

C. A Board of Trustees may disqualify a Vendor or potential Vendor from ongoing business or potential business for any communication contrary to the provisions of this section, for attempting to pay any expenses of a Trustee or employee contrary to section 8(A), or for any other conduct having the potential to create a conflict of interest or to cause a breach of fiduciary duty.

D. This regulation shall be included as an attachment to all requests for proposals, bidding documents and contracts of the Boards. The Boards shall require all consultants who conduct manager searches or other vendor searches on behalf of the Boards to provide a copy of this policy to all vendors or potential vendors during the search process.

Section 11 SANCTIONS

A. A Board of Trustees may take such actions it deems appropriate if a Trustee of the Board fails to comply with the provisions of this rule including, but not limited to:

1. A recommendation that a Trustee refrain from participation and voting in a matter or matters pending before the Board.

2. A recommendation that a Trustee repay or return any gift or benefit received by a Trustee from a Vendor or potential Vendor.

3. A recommendation that a Trustee refrain from particular actions that the Board determines constitute an actual or potential conflict and are detrimental to public confidence in the system's integrity.

B. A Board of Trustees may take appropriate disciplinary action, up to and including dismissal, if an Employee of the Board fails to comply with the provisions of this rule.Statutory Authority: 3 V.S.A. §§ 471(d), 472(d); 16 V.S.A. §§ 1942(f), 1943(d); 24 V.S.A. § 5062(d)

History

• Effective Date: July 18, 2001 (Secretary of State Rule Log # 01-040)