9 V.S.A. | Title 9 — Commerce and Trade

The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated, provided as a convenience by the Vermont General Assembly. The official text is the printed Vermont Statutes Annotated published by LexisNexis.

Chapter 1 Money of Account

§ 1 Dollar, cent, and mill

The money of account in the State shall be the dollar, cent, and mill; and accounts in public offices and proceedings in court shall be in conformity herewith; but this section shall not affect an account, charge, or entry originally made or a contract expressed in other money of account, but the same shall be reduced to dollars and parts of a dollar in an action thereon.

Chapter 3 Interest

§ 31 Repealed

[Repealed]

1967, No. 377 (Adj. Sess.), § 2, eff. March 26, 1968; 1969, No. 118, eff. April 22, 1969.

§§ 32-34 Repealed

[Repealed]

1967, No. 377 (Adj. Sess.), § 2, eff. March 26, 1968.

Chapter 4 Interest

Subchapter 1 Interest Generally

§ 41 Repealed

[Repealed]

1979, No. 173 (Adj. Sess.), § 19, eff. April 30, 1980.

§ 41a Legal rates

(a) Except as specifically provided by law, the rate of interest or the sum allowed for forbearance or use of money shall be 12 percent per annum computed by the actuarial method.

(b) The rate of interest or the sum allowed:

(1) For single payment loans by lenders regulated by Title 8 and federal savings and loan associations, the finance charge shall not exceed 18 percent per annum.

(2) For a retail installment contract the finance charge shall not exceed 18 percent per annum of the first $500.00 of the balance subject to finance charges and 15 percent per annum of the balance subject to finance charges in excess of $500.00.

(3) For a bank credit card account or revolving line of credit the rate shall be the rate agreed upon by the lender and the borrower. However, except for cash advances, no finance charge may be imposed for any monthly billing period in which there is no previous balance, or during which the sum of the payments received and other credits issued are equal to or exceed the amount of the previous balance.

(4) For a loan or extension of credit secured by motor vehicles, mobile homes, travel trailers, aircraft, watercraft, and farm equipment, of the current and previous model year, the interest rate shall not exceed 18 percent per annum. For a loan or extension of credit secured by such collateral older than the current or previous model year, the interest rate shall not exceed 20 percent per annum.

(5) For an installment loan not otherwise limited by subdivisions (1)-(4) of this subsection, the interest rate shall not exceed 24 percent per annum on the first $1,000.00 of the aggregate balance outstanding; and shall not exceed 12 percent per annum of the aggregate balance outstanding in excess of $1,000.00; or 18 percent annual percentage rate on the aggregate balance outstanding, whichever is higher.

(6) A lender may charge interest rates on loans secured by deposits in excess of the rates otherwise allowed in this section only to the extent that such higher rate is required to comply with Federal Deposit Insurance Corporation, Federal Home Loan Bank, and Federal Reserve Board regulations.

(7) For a loan or extension of credit secured by a subordinate lien against real estate, the interest rate shall not exceed 18 percent per annum. All such lien documents shall include a power of sale pursuant to 12 V.S.A. chapter 172, subchapter 4.

(8) For a loan or extension of credit secured by a first lien against real estate, the interest rate may be the same as may be charged by any financial institution or seller of residential real estate under the provisions of the federal Depository Institutions Deregulation and Monetary Control Act of 1980, as amended.

(9) For a retail charge agreement the finance charge shall be the rate or rates agreed upon by the parties to such charge agreement but not to exceed 21 percent per annum. However, no finance charge may be imposed for any monthly billing period in which there is no previous balance, or during which the sum of the payments received and other credits issued are equal to or exceed the amount of the previous balance. The term “billing period” shall mean the time interval between periodic statement dates. A billing period shall be considered a month or monthly if the last day of each billing period is on the same day of each month or does not vary by more than four days therefrom. For a retail charge agreement, the periodic billing can be no less than 1/48th of the balance as of the last advance.

(c) For the purpose of this section, the term “lender” shall include natural persons, partnerships, associations, and corporations or other entities whether organized under the laws of Vermont, of the United States, or of any other state or country who make or who have made a loan or loans subject to the laws of Vermont.

(d) Actuarial method

(1) Unless otherwise specifically provided by law, all interest on closed-end accounts, loans, or extensions of credit charged under this or any section shall be computed only on the outstanding balance subject to finance charge by the actuarial method of calculation. On all closed-end accounts, loans, or extensions of credit, interest shall be based on a 365-day year and on a 366-day year during a leap year, except in the case of loans secured by residential properties or to finance income producing business or activity where a 30-day month 360-day year interest calculation may be used. Interest shall not be paid, deducted, or added to principal in advance, except that the advance collection of interest for a period not to exceed 30 days shall be permitted upon origination of a mortgage loan.

(2) “Actuarial method” means the method of allocating payments made on a debt between the amount financed and the finance or other charges pursuant to which a payment is applied first to the accumulated finance or other charges and any remainder is subtracted from, or any deficiency is added to, the unpaid balance of the amount financed. The Commissioner may adopt rules not inconsistent with the Federal Truth in Lending Act further defining the term and prescribing its application.

(Added 1979, No. 173 (Adj. Sess.), § 12, eff. April 30, 1980; amended 1981, No. 89, § 7, eff. May 13, 1981; 1981, No. 126 (Adj. Sess.), eff. March 9, 1982; 1983, No. 37; 1983, No. 214 (Adj. Sess.), §§ 1, 2; 1985, No. 36, §§ 1, 2; 1987, No. 32, § 2; 1995, No. 9, § 1; 1995, No. 162 (Adj. Sess.), § 41, eff. Jan. 1, 1997.)

§ 41b Rent-to-own agreements; disclosure of terms

(a) Definitions. In this section:

(1) “Advertisement” means a commercial message that solicits a consumer to enter into a rent-to-own agreement for a specific item of merchandise that is conveyed:

(A) at a merchant’s place of business;

(B) on a merchant’s website; or

(2) “Cash price” means the price of merchandise available under a rent-to-own agreement that the consumer may pay in cash to the merchant at the inception of the agreement to acquire ownership of the merchandise.

(3) “Clear and conspicuous” means that the statement or term being disclosed is of such size, color, contrast, or audibility, as applicable, so that the nature, content, and significance of the statement or term is reasonably apparent to the person to whom it is disclosed.

(4) “Consumer” has the same meaning as in section 2451a of this title.

(5) “Merchandise” means an item of a merchant’s property that is available for use under a rent-to-own agreement. The term does not include:

(A) real property;

(B) a mobile home, as defined in section 2601 of this title;

(D) an assistive device, as defined in section 41c of this title; or

(E) a musical instrument intended to be used primarily in an elementary or secondary school.

(6) “Merchant” means a person who offers, or contracts for, the use of merchandise under a rent-to-own agreement.

(7) “Merchant’s cost” means the documented actual cost, including actual freight charges, of merchandise to the merchant from a wholesaler, distributor, supplier, or manufacturer and net of any discounts, rebates, and incentives that are vested and calculable as to a specific item of merchandise at the time the merchant accepts delivery of the merchandise.

(8)(A) “Rent-to-own agreement” means a contract under which a consumer agrees to pay a merchant for the right to use merchandise and acquire ownership, which is renewable with each payment after the initial period, and which remains in effect until:

(i) the consumer returns the merchandise to the merchant;

(ii) the merchant retakes possession of the merchandise; or

(iii) the consumer pays the total cost and acquires ownership of the merchandise.

(B) A “rent-to-own agreement” as defined in subdivision (7)(A) of this subsection is not:

(i) a sale subject to 9A V.S.A. Article 2;

(ii) a lease subject to 9A V.S.A. Article 2A;

(iii) a security interest as defined in 9A V.S.A. § 1—201(a)(35); or

(iv) a retail installment contract or retail charge agreement as defined in chapter 61 of this title.

(9) “Rent-to-own charge” means the difference between the total cost and the cash price of an item of merchandise.

(10) “Total cost” means the sum of all payments, charges, and fees that a consumer must pay to acquire ownership of merchandise under a rent-to-own agreement. The term does not include charges or fees for optional services or charges or fees due only upon the occurrence of a contingency specified in the agreement.

(b) General requirements.

(1) Prior to execution, a merchant shall give a consumer the opportunity to review a written copy of a rent-to-own agreement that includes all of the information required by this section for each item of merchandise covered by the agreement and shall not refuse a consumer’s request to review the agreement with a third party, either inside the merchant’s place of business or at another location.

(2) A disclosure required by this section shall be clear and conspicuous.

(3) In a rent-to-own agreement, a merchant shall state a numerical amount or percentage as a figure and shall print or legibly handwrite the figure in the equivalent of 12-point type or greater.

(4) A merchant may supply information not required by this section with the disclosures required by this section, but shall not state or place additional information in such a way as to cause the required disclosures to be misleading or confusing, or to contradict, obscure, or detract attention from the required disclosures.

(5) Except for price cards on site, a merchant shall preserve an advertisement, or a digital copy of the advertisement, for not less than two years after the date the advertisement appeared. In the case of a radio, television, or internet advertisement, a merchant may preserve a copy of the script or storyboard.

(6) Subject to availability, a merchant shall make merchandise that is advertised available to all consumers on the terms and conditions that appear in the advertisement.

(7) A rent-to-own agreement that is substantially modified, including a change that increases the consumer’s payments or other obligations or diminishes the consumer’s rights, shall be considered a new agreement subject to the requirements of this chapter.

(8) For each rent-to-own agreement, a merchant shall keep the following information in an electronic or hard copy for a period of four years following the date the agreement ends:

(A) the rent-to-own agreement covering the item; and

(B) a record that establishes the merchant’s cost for the item.

(9) A rent-to-own agreement executed by a merchant doing business in Vermont and a resident of Vermont shall be governed by Vermont law.

(1) Except as otherwise provided in subdivision (2) of this subsection, the maximum cash price for an item of merchandise shall not exceed:

(A) for an appliance, 1.75 times the merchant’s cost;

(B) for an item of electronics that has a merchant’s cost of less than $150.00, 1.75 times the merchant’s cost;

(D) for an item of furniture or jewelry, 2.50 times the merchant’s cost; and

(E) for any other item, 2.00 times the merchant’s cost.

(2) The cash price for an item of merchandise that has been previously used by a consumer shall be at least 10 percent less than the cash price calculated under subdivision (1) of this subsection.

(3) The total cost for an item of merchandise shall not exceed 2.00 times the maximum cash price for the item.

(d) Disclosures in advertising; prohibited disclosures.

(1) An advertisement that refers to or states the dollar amount of any payment for merchandise shall state:

(A) the cash price of the item;

(B) that the merchandise is available under a rent-to-own agreement;

(D) the total cost for the item;

(E) the rent-to-own charge for the item; and

(F) that the consumer will not own the merchandise until the consumer pays the total cost for ownership.

(2) A merchant shall not advertise that no credit check is required or performed, or that all consumers are approved for transactions, if the merchant subjects the consumer to a credit check.

(e) Disclosures on site. In addition to the information required in subsection (d) of this section, an advertisement at a merchant’s place of business shall include:

(1) whether the item is new or used;

(2) when the merchant acquired the item; and

(3) the number of times a consumer has taken possession of the item under a rent-to-own agreement.

(f) Disclosures in rent-to-own agreement.

(1) The first page of a rent-to-own agreement shall include:

(A) a heading and clause in boldface type that reads: “IMPORTANT INFORMATION ABOUT THIS RENT-TO-OWN AGREEMENT. Do Not Sign this Agreement Before You Read it or if it Contains any Blank Spaces. You have a Right to Review this Agreement or Compare Costs Away from the Store Before You Sign.”; and

(B) the following information in the following order:

(i) the name, address, and contact information of the merchant;

(ii) the name, address, and contact information of the consumer;

(iii) the date of the transaction;

(iv) a description of the merchandise sufficient to identify the merchandise to the consumer and the merchant, including any applicable model and identification numbers;

(v) a statement whether the merchandise is new or used, and in the case of used merchandise, a statement that the merchandise is in good working order, is clean, and is free of any infestation.

(2) A rent-to-own agreement shall include the following cost disclosures, printed and grouped as indicated below, immediately preceding the signature lines:

| | (1) | Cash Price: | | $ _________________________________________ | | --- | --- | --- | --- | --- | | | (2) | Payments required to become owner: | | | | | $ _______________ /(weekly)(biweekly)(monthly) x (# of payments) = | $ _________________________________________ | | | | | (3) | Mandatory charges and fees required to become owner (itemize): | | | | | | _________________________________________ | | $ _________________________________________ | | | | _________________________________________ | | $ _________________________________________ | | | | _________________________________________ | | $ _________________________________________ | | | | Total required fees and charges: | | $ _________________________________________ | | | (4) | Total cost: | (2) + (3) = | $ _________________________________________ | | | (5) | Rent-to-Own Charge: | (4) - (1) = | $ _________________________________________ | | | (6) | Tax: | | $ _________________________________________ | | | (7) | Do not sign before reading this agreement carefully | | |

(g) Required provisions of rent-to-own agreement. A rent-to-own agreement shall provide:

(1) a statement of payment due dates;

(2) a line-item list of any other charges or fees the consumer could be charged or have the option of paying in the course of acquiring ownership or during or after the term of the agreement;

(3) that the consumer will not own the merchandise until he or she makes all of the required payments for ownership;

(4) that the consumer has the right to receive a receipt for a payment and, upon reasonable notice, a written statement of account;

(5) who is responsible for service, maintenance, and repair of an item of merchandise;

(6) that, except in the case of the consumer’s negligence or abuse, if the merchant, during the term of the agreement, must retake possession of the merchandise for maintenance, repair, or service, or the item cannot be repaired, the merchant is responsible for providing the consumer with a replacement item of equal quality and comparable design;

(7) that the maximum amount of the consumer’s liability for damage or loss to the merchandise is limited to an amount equal to the cash price multiplied by the ratio of:

(A) the number of payments remaining to acquire ownership under the agreement; to

(B) the total number of payments necessary to acquire ownership under the agreement;

(8) a statement that if any part of a manufacturer’s express warranty covers the merchandise at the time the consumer acquires ownership the merchant shall transfer the warranty to the consumer if allowed by the terms of the warranty;

(9) a description of any damage waiver or insurance purchased by the consumer, or a statement that the consumer is not required to purchase any damage waiver or insurance;

(10) an explanation of the consumer’s options to purchase the merchandise;

(11) an explanation of the merchant’s right to repossess the merchandise; and

(12) an explanation of the parties’ respective rights to terminate the agreement, and to reinstate the agreement.

(h) Warranties.

(1) Upon transfer of ownership of merchandise to a consumer, a merchant shall transfer to the consumer any manufacturer’s or other warranty on the merchandise.

(2) A merchant creates an implied warranty to a consumer, which may not be waived, in the following circumstances:

(A) an affirmation of fact or promise made by the merchant to the consumer which relates to merchandise creates an implied warranty that the merchandise will substantially conform to the affirmation or promise;

(B) a description of the merchandise by the merchant creates an implied warranty that the merchandise will substantially conform to the description; and

(C) a sample or model exhibited to the consumer by the merchant creates an implied warranty that the merchandise actually delivered to the consumer will substantially conform to the sample or model.

(i) Maintenance and repairs.

(1) During the term of a rent-to-own agreement, the merchant shall maintain the merchandise in good working condition.

(2) If a repair cannot be completed within three days, the merchant shall provide a replacement to the consumer to use until the original merchandise is repaired. Replacement merchandise shall be at least comparable in quality, age, condition, and warranty coverage to the replaced original merchandise.

(3) A merchant is not required to repair or replace merchandise that has been damaged as a result of negligence or an intentional act by the consumer.

(j) Prohibited provisions of rent-to-own agreement. A rent-to-own agreement shall not include any of the following provisions, which shall be void and unenforceable:

(1) a provision requiring a confession of judgment;

(2) a provision requiring a garnishment of wages;

(3) a provision requiring arbitration or mediation of a claim that otherwise meets the jurisdictional requirements of a small claims proceeding under 12 V.S.A. chapter 187;

(4) a provision authorizing a merchant or its agent to enter unlawfully upon the consumer’s premises or to commit any breach of the peace in the repossession of property;

(5) a provision requiring the consumer to waive any defense, counterclaim, or right of action against the merchant or its agent in collection of payment under the agreement or in the repossession of property; or

(6) a provision requiring the consumer to purchase a damage waiver or insurance from the merchant to cover the property.

(k) Option to purchase. Notwithstanding any other provision of this section, at any time after the first payment, a consumer who is not in violation of a rent-to-own agreement may acquire ownership of the merchandise covered by the agreement by paying an amount equal to the cash price of the merchandise minus 50 percent of the value of the consumer’s previous payments.

(l) Payment; notice of default. If a consumer fails to make a timely payment required in a rent-to-own agreement, the merchant shall deliver to the consumer a notice of default and right to reinstate the agreement at least 14 days before the merchant commences a civil action to collect amounts the consumer owes under the agreement.

(m) Collections; repossession of merchandise; prohibited acts. When attempting to collect a debt or enforce an obligation under a rent-to-own agreement, a merchant shall not:

(1) call or visit a consumer’s workplace after a request by the consumer or his or her employer not to do so;

(2) use profanity or any language to abuse, ridicule, or degrade a consumer;

(3) repeatedly call, leave messages, knock on doors, or ring doorbells;

(4) ask someone, other than a spouse, to make a payment on behalf of a consumer;

(5) obtain payment through a consumer’s bank, credit card, or other account without authorization;

(6) speak with a consumer more than six times per week to discuss an overdue account;

(7) engage in violence;

(8) trespass;

(9) call or visit a consumer at home or work after receiving legal notice that the consumer has filed for bankruptcy;

(10) impersonate others;

(11) discuss a consumer’s account with anyone other than a spouse of the consumer;

(12) threaten unwarranted legal action; or

(13) leave a recorded message for a consumer that includes anything other than the caller’s name, contact information, and a courteous request that the consumer return the call.

(n) Reinstatement of agreement.

(1) A consumer who fails to make a timely payment may reinstate a rent-to-own agreement without losing any rights or options that exist under the agreement by paying all past-due charges, the reasonable costs of pickup, redelivery, and any refurbishing, and any applicable late fee:

(A) within five business days of the renewal date of the agreement if the consumer pays monthly; or

(B) within three business days of the renewal date of the agreement if the consumer pays more frequently than monthly.

(2) If a consumer promptly returns or voluntarily surrenders merchandise upon a merchant’s request, the consumer may reinstate a rent-to-own agreement during a period of not less than 180 days after the date the merchant retakes possession of the merchandise.

(3) In the case of a rent-to-own agreement that is reinstated pursuant to this subsection, the merchant is not required to provide the consumer with the identical item of merchandise and may provide the consumer with a replacement item of equal quality and comparable design.

(o) Reasonable charges and fees; late fees.

(1) A charge or fee assessed under a rent-to-own agreement shall be reasonably related to the actual cost to the merchant of the service or hardship for which it is charged.

(2) A merchant may assess only one late fee for each payment regardless of how long the payment remains due.

(p) Prohibition on rent-to-own businesses and licensed lenders. A person engaged in the business of selling merchandise under a rent-to-own agreement subject to this section shall not engage in any conduct or business at the same physical location that would require a license under 8 V.S.A. chapter 73 (licensed lenders).

(q) Enforcement; remedies; damages. A person who violates this section commits an unfair and deceptive act in commerce in violation of section 2453 of this title.

(Added 1993, No. 221 (Adj. Sess.), § 15a; amended 2015, No. 55, § 1, eff. Sept. 1, 2015; 2021, No. 20, § 8.)

§ 41c Rent-to-own; assistive devices

(a) As used in this section:

(1) “Assistive device” means any item, piece of equipment, or product system, whether acquired commercially off-the-shelf, modified, or customized, that is used or designed to be used to increase, maintain, or improve any functional capability of an individual with disabilities. An assistive device system, that as a whole is within the definition of this term, is itself an assistive device, and, in such cases, this term also applies to each component product of the assistive device system that is itself ordinarily an assistive device. This term includes:

(A) wheelchairs and scooters of any kind, and other aids that enhance the mobility or positioning of an individual, such as motorization, motorized positioning features, and the switches and controls for any motorized features;

(B) computer equipment with voice output, artificial larynges, voice amplification devices, and other alternative and augmentative communication devices or any devices used for the purpose of communication;

(C) computer equipment and reading devices with voice output, optical scanners, talking software, braille printers, and other aids and devices that provide access to text;

(D) hearing aids, telephone communication devices for people who are deaf, and other assistive listening devices;

(E) voice recognition computer equipment, software and hardware accommodations, switches, and other forms of alternative access to computers;

(F) environmental control units;

(G) simple mechanical aids that enhance the functional capabilities of an individual with disabilities; and

(H) durable medical equipment.

(2) “Assistive devise lessee” means an individual with a disability or a person renting or leasing on behalf of an individual with a disability who is renting or leasing an assistive device for the purpose of increasing, maintaining, or improving any functional capability related to the individual’s disability.

(b) A person in the business of renting, or renting to own, an assistive device to assistive device lessees who rents an assistive device for more than 60 days or who rents an assistive device to own shall offer such assistive device lessees a purchase option with reasonable terms and conditions. Such a purchase option may be exercised at any time by the assistive device lessees, the reasonable terms and conditions of which shall be included with the consumer’s periodic billing.

(1) A person in the business of renting products that may be assistive devices may include the following question in its rental application:

(A) If an assistive device lessee answers “yes” to the question or requests additional information, the business entity shall provide the following statement:

ASSISTIVE DEVICE PURCHASE OPTION RIGHTS

IF YOU ARE RENTING THIS PRODUCT AS AN ACCOMMODATION FOR A DISABILITY OR AS AN ASSISTIVE DEVICE, THE DEALER IS REQUIRED TO OFFER YOU A RENTAL TRANSACTION THAT INCLUDES A PURCHASE OPTION. UNDER THE PURCHASE OPTION YOU MAY ACQUIRE OWNERSHIP OF THE PRODUCT AT ANYTIME BY TENDERING AN AMOUNT EQUAL TO THE CASH PRICE OF THE PRODUCT LESS 50% OF ALL PREVIOUS RENTAL PAYMENTS YOU HAVE MADE. OR, ONCE YOU HAVE MADE RENTAL PAYMENTS EQUAL TO 200% OF THE CASH PRICE YOU MAY ACQUIRE OWNERSHIP OF THE PRODUCT BY PAYING $1.00.

BEFORE YOU DETERMINE WHETHER TO ELECT A TRANSACTION WITH OR WITHOUT A PURCHASE OPTION, THE PERSON IN THE BUSINESS OF RENTING OR RENTING TO OWN THE ASSISTIVE DEVICE MUST FULLY DISCLOSE THE TERMS OF BOTH TRANSACTIONS.

THE VALUE OF A PURCHASE OPTION DEPENDS ON MANY FACTORS, WHICH MAY INCLUDE: (1) HOW LONG YOU INTEND TO USE THE PRODUCT; (2) THE CASH PRICE OF THE PRODUCT; AND (3) THE COST OF MAINTAINING THE PRODUCT.

ASSISTIVE DEVICE PURCHASE OPTION RIGHTS: IF YOU ELECT A RENTAL TRANSACTION WITHOUT A PURCHASE OPTION AND YOU CHANGE YOUR MIND AT A LATER DATE AND DECIDE TO ENTER INTO A PURCHASE OPTION TRANSACTION, PAYMENTS THAT YOU HAVE MADE WILL NOT BE APPLIED TO THE NEW TRANSACTIONS.

(B) The rental dealer may add additional information or explanations to the information required by subdivision (A) of this subdivision (1), as long as the additional information is not stated, utilized, or placed in a manner that will confuse the assistive device lessee or that will contradict, obscure, or distract attention from the required information. The additional information or explanation shall not have the effect of circumventing, evading, or complicating the information required by subdivision (A) of this subdivision (1).

ARE YOU RENTING THIS PRODUCT AS AN ACCOMMODATION FOR A DISABILITY OR AS AN ASSISTIVE DEVICE?

YES ________ NO ________

(2) Failure to comply with this section is not a violation if the assistive device lessee fails to inform the rental dealer that the product is being rented as an assistive device after the rental dealer makes the written inquiry in subdivision (1) of this subsection.

(c)(1) When periodic payments made by an assistive device lessee, exclusive of payments for service, total 200 percent of the bona fide cash price, the person in the business of renting or renting to own the assistive device shall notify the individual with a disability and the assistive device lessee that the individual with a disability and the assistive device lessee have the option of acquiring ownership of the assistive device upon payment of $1.00, at which time the rental or rent-to-own agreement shall terminate.

(2) The term “bona fide cash price” means the price at which a merchant, in the ordinary course of business, and taking into account the value of the merchandise and its retail price in the trade area, would offer to sell the merchandise to consumers for cash.

(d) Under a rent-to-own program, at any time after the initial payment, the assistive device lessee may acquire ownership of the property by tendering an amount equal to the cash price of the merchandise minus 50 percent of all previous rental-purchase payments made.

(e) When an assistive device lessee has acquired ownership of an assistive device under this section, the person in the business of renting or renting to own shall offer, for a reasonable price and term, a contract to maintain and service the device.

(f) This section shall not apply to assistive devices provided pursuant to a Medicare or Medicaid contract that either includes provisions for the acquisition of ownership or prohibits purchase or the acquisition of ownership by an assistive device lessee.

(g) A violation of this section is deemed to be an unfair or deceptive act or practice in commerce and a violation of chapter 63 of this title and all remedies and penalties available to a consumer or the Attorney General under that chapter shall apply, and the Attorney General shall have the same authority to make rules, conduct civil investigations, and enter into assurances of discontinuance as provided under chapter 63, subchapter 1 of this title.

(Added 1999, No. 104 (Adj. Sess.), § 2; amended 2013, No. 96 (Adj. Sess.), § 26.)

§ 42 Permitted charges

(a) Except for interest as provided in this chapter, a lender shall make no charges against a borrower for the use or forbearance of money other than:

(1) the reasonable cost of credit investigation and appraisal fees;

(2) the reasonable cost of title evidence, including abstracts, legal opinions, or title insurance;

(3) the reasonable cost of protection against insurable hazards;

(4) the reasonable cost of creditor life or disability insurance, or of a debt protection agreement as set forth in 8 V.S.A. § 10405, if agreed to by the borrower;

(5) the filing and recording fees, and other official fees, including fees required by Federal Housing Agencies, the Federal Home Loan Mortgage Corporation, and the Federal National Mortgage Corporation;

(6) the reasonable value of services rendered in connection with the making of any loan of $4,000.00 or less or any loan or loan commitment of any amount or manner of payment to finance an income producing business or activity subject to such rules as the Commissioner of Financial Regulation adopts;

(7) the reasonable cost of private mortgage guaranty insurance subject to such limitation as the Commissioner of Financial Regulation has approved;

(8) the reasonable fees associated with a credit card, agreed upon by the lender and borrower, including late charges and over-limit charges; and

(9) discount points, at the request of the borrower for the purpose of reducing, and which in fact result in a bona fide reduction of, the interest rate or time-price differential applicable to the loan.

(b) A borrower may procure an opinion and abstract of title from an attorney of the borrower’s choice acceptable to the lender, or hazard insurance in a company or in companies of the borrower’s choice acceptable to the lender, and in such cases the lender’s acceptance shall not be unreasonably withheld.

(Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended 1969, No. 66, § 2, eff. April 17, 1969; 1973, No. 222 (Adj. Sess.), § 5, eff. April 3, 1974; 1975, No. 216 (Adj. Sess.), § 4, eff. March 27, 1976; 1979, No. 173 (Adj. Sess.), § 13, eff. April 30, 1980; 1985, No. 36, § 3; 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 9, § 2; 1995, No. 180 (Adj. Sess.), § 38; 2005, No. 70, § 3; 2021, No. 20, § 9; 2025, No. 23, § 16, eff. July 1, 2025.)

§ 43 Deposit requirement prohibited; exception

A lender shall not, as a condition to granting or extending a loan, require a borrower to keep or place any sum on deposit with the lender or nominee of the lender, except for deposit arrangements directly related to secured credit cards in a manner consistent with rules adopted by the Commissioner, rules that shall include disclosure requirements, and specific types of alternative mortgages approved by the Commissioner as provided in 8 V.S.A. § 1256. Any deposit arrangement permitted under this section shall not result in an effective interest rate that exceeds legal rates established in 9 V.S.A. § 41a.

(Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended 1977, No. 184 (Adj. Sess.), § 2; 1995, No. 9, § 3; 2023, No. 32, § 5, eff. July 1, 2023.)

§ 44 Certain charges not usurious

Agreements to maintain with the lender non-interest bearing reserves or deposits with which to pay when due taxes and insurance premiums, or agreements clearly set forth in the loan contract for the payment of reasonable delinquency or deferral charges, shall not be construed to be interest or a prohibited charge within the meaning of this chapter.

(Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968.)

§ 45 Prepayment of loans

A borrower may prepay a loan at any time, without prepayment premium or penalty.

(Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968.)

§ 46 Exceptions

Section 43 of this title, relating to deposit requirements, and section 45 of this title, relating to prepayment penalties, shall not apply and the parties may contract for a rate of interest in excess of the rate provided in section 41a of this title in the case of:

(1) obligations of corporations, including municipal and nonprofit corporations; or

(2) obligations incurred by any person, partnership, association, or other entity to finance in whole or in part income-producing business or activity, but not including obligations incurred to finance family dwellings of four units or fewer when used as a residence by the borrower or to finance real estate that is devoted to agricultural purposes as part of an operating farming unit when used as a residence by the borrower; or

(3) obligations to finance the purchase, construction, or improvement of property for seasonal or part-time occupancy and not as a place of legal residence; or

(4) obligations guaranteed or insured by the United States of America or any agency thereof.

(Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended 1969, No. 66, § 3, eff. April 17, 1969; 1973, No. 222 (Adj. Sess.), § 6, eff. April 3, 1974; 1975, No. 216 (Adj. Sess.), § 5, eff. March 27, 1976; 2009, No. 134 (Adj. Sess.), § 24i.)

§ 47 Application of payments

(a) On a note, bill, or other similar obligation, payable on demand or at a specified time, with interest, when a payment is made, the payment shall be applied: first, to liquidate the interest accrued at the time of the payment; and second, to extinguish the principal.

(b) Notwithstanding any other provision of this chapter to the contrary, payments shall be applied to interest, principal, and escrow charges, if any, before any portion of the payment is applied to late fees, delinquency charges, deferral charges, or any similar fees or charges.

(Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended 2019, No. 20, § 104.)

§ 48 Excess insurance, proceeds

If a loan is paid before its due date as the result of the death of a borrower insured under a creditor life insurance policy and the insurance proceeds exceed the amount owing on the loan with interest, the excess shall be refunded to a beneficiary designated by the borrower, or to the estate of the insured, or applied in reduction of the debt.

(Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968.)

§ 49 Computation of interest

When a note, bill, or other similar obligation is payable on demand or at a specified time, with interest annually, the annual interest that remains unpaid shall bear simple interest from the time it becomes due to the time of final settlement; but if in a year, reckoning from the time the annual interest began to accrue, payments are made, the amount of those payments at the end of that year, with interest thereon from the time of payment, shall be applied: first, to liquidate the simple interest accrued from the unpaid annual interest; second, to liquidate the annual interest due; and third, to extinguish the principal.

(Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968.)

§ 50 Penalties

(a) When a greater rate of interest than is allowed by law is paid, the person paying it may recover the amount so paid above the legal interest, with interest thereon from the time of payment and all expenses of collection, including reasonable attorney’s fees, in a civil action on this statute.

(b) Except as otherwise expressly authorized by law, a lender shall not knowingly or willfully make any contract, express or implied, that directly or indirectly calls for the payment of any interest or finance charge in excess of the legal rate as set forth in section 41a of this title. The section shall be enforceable only to the extent herein provided and the lender shall have no right to collect any interest or charges whatsoever and shall have a right to collect only one-half of the principal.

(c) Any person, partnership, association, or corporation and the several members, officers, directors, agents, and employees thereof, who knowingly or willfully contracts for or collects any sum in excess of legal interest for the loan, use, or forbearance of money, unless expressly authorized by law to do so, shall, for the first offense, be fined not more than $500.00 or imprisoned for not more than six months, or both. Upon conviction for violating this section in any transaction entered into or consummated after a first conviction hereunder, the offender shall be fined not more than $1,000.00 or imprisoned for not more than one year, or both.

(Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended 1979, No. 173 (Adj. Sess.), § 14, eff. April 30, 1980.)

Subchapter 2 Disclosure

§ 101 Borrower’s notice

A demand note shall contain on its face the following notice in a size equal to at least 10-point bold type:

NOTICE TO BORROWER: THIS IS A DEMAND NOTE AND SO MAY BE COLLECTED BY THE LENDER AT ANY TIME. A NEW NOTE MUTUALLY AGREED UPON AND SUBSEQUENTLY ISSUED MAY CARRY A HIGHER OR LOWER RATE OF INTEREST.

(Added 1975, No. 106, § 3.)

§ 102 Co-signer’s notice

If a lender requires the signature of an obligor jointly and severally the instrument evidencing the obligation shall contain on its face the following notice, conspicuously placed, in a size equal to at least 10-point bold type:

NOTICE TO CO-SIGNER: YOUR SIGNATURE ON THIS NOTE MEANS THAT YOU ARE EQUALLY LIABLE FOR REPAYMENT OF THIS LOAN. IF THE BORROWER DOES NOT PAY, THE LENDER HAS A LEGAL RIGHT TO COLLECT FROM YOU.

(Added 1975, No. 106, § 3.)

§ 103 Residential real estate loans

(a) For any fixed-rate loan, secured by a lien against real estate, used or to be used by the borrower as a residence, the rate of interest and other terms of the loan shall be for the duration of the loan at no more than the rate and terms established in the commitment letter for the loan by the lender, whether or not conditioned on future actions or events, and not the date of execution or closing of the transaction, unless specifically disclosed to and agreed to by the borrower on the date the commitment letter issues. The provisions of section 50 of this title shall apply to any violation of this section.

(b) For any variable-rate loan, secured by a lien against real estate used or to be used by the borrower as a residence, the lender shall disclose any introductory discount or similar reduction from the index or other measure fixing the rate or other terms of the loan at the time the loan commitment letter issues. Any subsequent adjustment above the initial amount discounted, not disclosed as provided in this subsection, shall have no legal force and effect.

(c) The Commissioner of Financial Regulation may adopt rules specifying the form, content, and timing of commitment letters required by this section. The Commissioner may order any person to make restitution to any person injured as a result of a violation of this subchapter and may impose an administrative penalty of up to $1,000.00 for a violation of this subchapter. The Commissioner may order any person to cease violating this subchapter.

(Added 1985, No. 131 (Adj. Sess.); amended 1997, No. 98 (Adj. Sess.), § 6, eff. April 16, 1998; 2015, No. 23, § 88.)

§ 104 High rate loans

(a) The Commissioner may adopt disclosure rules for loans secured by a first lien on residential real estate in which the borrower is expected to be charged in excess of four points or interest in excess of three percent over the rate established pursuant to 32 V.S.A. § 3108, or both, on the loan. The rules may provide for restrictions on representations by the lender regarding the disclosures required by the rules.

(b) The Commissioner shall notify all mortgage lenders of the interest rate determined under 32 V.S.A. § 3108 annually.

(c) The Commissioner may impose an administrative penalty of not more than $5,000.00 on any person that fails to comply with the provisions of this section. The Commissioner may order a lender to refund any discount points or other charges paid by a borrower who has not received disclosures required by the rule.

(Added 1997, No. 98 (Adj. Sess.), § 7, eff. April 16, 1998; amended 2015, No. 23, § 89.)

Subchapter 3 Funded Settlements

§ 201 Definitions

As used in this subchapter:

(1) “Disbursement of loan funds” means the delivery of the loan funds by the lender to the settlement agent in one or more of the following forms:

(A) cash;

(B) wired funds or electronic transfer;

(D) checks issued by a governmental entity or instrumentality;

(E) cashier’s check, teller’s check, or any transfer of funds by check or otherwise that is fully collected and unconditionally available to the settlement agent;

(F) checks or other drafts issued by a state-chartered or federally chartered financial institution; checks or other drafts issued by a state-chartered or federally chartered credit union; and

(G) checks issued by an insurance company licensed in the State of Vermont.

(2) “Disbursement of the settlement proceeds” means the payment of all proceeds of the transaction by the settlement agent to the persons or accounts designated to receive the proceeds.

(3) “Lender” means any person who is in the business of making loans secured by a mortgage on real estate and to whom the debt is initially payable on the face of the loan documents.

(4) “Loan closing” means the time a borrower executes any loan document or becomes contractually obligated on a credit transaction, whichever occurs sooner.

(5) “Loan documents” means the note evidencing the debt due the lender, the mortgage securing the debt due the lender, and any other documents required by the lender to be executed by the borrower as part of the transaction.

(6) “Loan funds” means the proceeds of the loan to be disbursed by the lender to others at closing.

(7) “Settlement” means the time when the settlement agent has received the loan funds, loan documents, and other documents and funds to carry out the terms of the contract between the parties, and the settlement agent reasonably determines that all conditions of such contracts have been satisfied. “Parties,” as used in this subdivision, means the seller, purchaser, borrower, lender, and settlement agent.

(8) “Settlement agent” means the person responsible for conducting the settlement and disbursement of the settlement proceeds, and includes an individual, corporation, partnership, or other entity conducting the settlement and disbursement of the settlement proceeds. The lender may be the settlement agent.

(Added 2001, No. 55, § 2.)

§ 202 Applicability

This subchapter applies only to transactions involving loans made by lenders, which loans are secured by a first lien on owner-occupied one-to-four-unit residential real estate, including first and second homes.

(Added 2001, No. 55, § 2.)

§ 203 Duty of lender

(a) The lender shall, at or before the loan closing, cause disbursement of loan funds to the settlement agent; however, in the case of a refinancing, or any other loan where a right of rescission applies but has not been exercised, the lender shall, prior to 2:00 p.m. Eastern Standard Time of the first business day after the expiration of the rescission period required under the federal Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), cause disbursement of loan funds to the settlement agent.

(b) If the lender is acting as settlement agent, the lender shall cause disbursement of the settlement proceeds at the loan closing, or, for any other loan where a right of rescission applies, the lender shall cause disbursement of the settlement proceeds on the first business day after the expiration of the rescission period.

(c) The lender shall not be entitled to receive or charge any interest on the loan until disbursement of the settlement proceeds.

(Added 2001, No. 55, § 2.)

§ 204 Duty of settlement agent that is not a lender

A settlement agent that has received the loan funds from the lender shall cause disbursement of settlement proceeds at the loan closing, or, for any other loan where a right of rescission applies, the settlement agent shall cause disbursement of the settlement proceeds on the first business day after the expiration of the rescission period.

(Added 2001, No. 55, § 2.)

§ 205 Commissioner’s powers

(a) The Commissioner may:

(1) impose an administrative penalty of not more than $1,000.00 for each violation upon any person who violates or participates in the violation of this subchapter, or any lawful regulation or order issued thereunder;

(2) order any person to make restitution to any person injured as a result of a violation of this subchapter; and

(3) order any person to cease and desist in any specified conduct.

(b) The powers vested in the Commissioner by this subchapter shall be in addition to any other powers to enforce any penalties, fines, or forfeitures authorized by law.

(Added 2001, No. 55, § 2.)

§ 206 Consumer remedies

(a) A lender or settlement agent who violates any provision of this subchapter and causes actual damage to a consumer is subject to a civil action by the aggrieved consumer in which the consumer has the right to recover the greater of actual damages in an amount determined by the court or, except as provided in subsection (b) of this section, an amount determined by the court of not less than $250.00 nor more than $1,000.00, plus costs of the action, together with reasonable attorney’s fees.

(b) Liability under subsection (a) of this section is limited to actual damages, plus costs of the action, together with reasonable attorney’s fees, if the lender or settlement agent shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid any such error.

(Added 2001, No. 55, § 2.)

Chapter 20 Uniform Electronic Transactions Act

§ 270 Short title

This chapter may be cited as the Uniform Electronic Transactions Act.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 271 Definitions

For purposes of this chapter:

(1) “Agreement” means the bargain of the parties in fact, as found in their language or inferred from other circumstances and from rules, regulations, and procedures given the effect of agreements under laws otherwise applicable to a particular transaction.

(2) “Automated transaction” means a transaction conducted or performed, in whole or in part, by electronic means or electronic records, in which the acts or records of one or both parties are not reviewed by an individual in the ordinary course in forming a contract, performing under an existing contract, or fulfilling an obligation required by the transaction.

(3) “Computer program” means a set of statements or instructions to be used directly or indirectly in an information processing system in order to bring about a certain result.

(4) “Consumer” means an individual who obtains, through a transaction, products or services that are used primarily for personal, family, or household purposes, and also means the legal representative of such an individual.

(5) “Contract” means the total legal obligation resulting from the parties’ agreement as affected by this chapter and other applicable law.

(6) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

(7) “Electronic agent” means a computer program or an electronic or other automated means used independently to initiate an action or respond to electronic records or performances in whole or in part, without review or action by an individual.

(8) “Electronic record” means a record created, generated, sent, communicated, received, or stored by electronic means.

(9) “Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

(10) “Governmental agency” means an executive, legislative, or judicial agency, department, board, commission, authority, institution, or instrumentality of the federal government or of a state or of a county, municipality, or other political subdivision of a state.

(11) “Information” means data, text, images, sounds, codes, computer programs, software, databases, or the like.

(12) “Information processing system” means an electronic system for creating, generating, sending, receiving, storing, displaying, or processing information.

(13) “Person” means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, governmental agency, public corporation, or any other legal or commercial entity.

(14) “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

(15) “Security procedure” means a procedure employed for the purpose of verifying that an electronic signature, record, or performance is that of a specific person or for detecting changes or errors in the information in an electronic record. The term includes a procedure that requires the use of algorithms or other codes, identifying words or numbers, encryption, or callback or other acknowledgment procedures.

(16) “State” means a state of the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. The term includes an Indian tribe or band, or Alaskan native village, which is recognized by federal law or formally acknowledged by a state.

(17) “Transaction” means an action or set of actions occurring between two or more persons relating to the conduct of business, commercial, or governmental affairs.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 272 Scope

(a) Except as otherwise provided in subsections (b) and (c) of this section, this chapter applies to electronic records and electronic signatures relating to a transaction.

(b) This chapter does not apply to:

(1) a transaction to the extent it is governed by a law governing the creation and execution of wills, codicils, or testamentary trusts;

(2) a transaction to the extent it is governed by a state statute, regulation, or other rule of law governing adoption, divorce, or other matters of family law;

(3) a transaction to the extent it is governed by the Uniform Commercial Code, other than 9A V.S.A. §§ 1-107 and 1-206, Article 2, and Article 2A;

(4) court orders or notices, or official court documents, including briefs, pleadings, and other writings, required to be executed in connection with court proceedings; or

(5) any notice of:

(A) the cancellation or termination of utility services (including water, heat, and power);

(B) default, acceleration, repossession, foreclosure, or eviction, or the right to cure, under a credit agreement secured by, or a rental agreement for, a primary residence of an individual;

(D) recall of a product, or material failure of a product, that risks endangering health or safety; or

(E) a right to cancel a home solicitation sale required pursuant to section 2454 of this title;

(6) any document required to accompany any transportation or handling of hazardous materials, pesticides, or other toxic or dangerous materials.

(c) This chapter applies to an electronic record or electronic signature otherwise excluded from the application of this chapter under subsection (b) of this section to the extent that it is governed by a law other than those specified in subsection (b).

(d) A transaction subject to this chapter is also subject to other applicable substantive law.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004; amended 2019, No. 131 (Adj. Sess.), § 9.)

§ 273 Prospective application

This chapter applies to any electronic record or electronic signature created, generated, sent, communicated, received, or stored on or after January 1, 2004.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 274 Use of electronic records and electronic signatures; variation by agreement

(a) This chapter does not require a record or signature to be created, generated, sent, communicated, received, stored, or otherwise processed or used by electronic means or in electronic form.

(b) This chapter applies only to transactions between parties, each of which has agreed to conduct transactions by electronic means. Whether the parties agree to conduct a transaction by electronic means is determined from the context and surrounding circumstances, including the parties’ conduct.

(c) A party that agrees to conduct a transaction by electronic means may refuse to conduct other transactions by electronic means. This subsection may not be waived by agreement.

(d) Except as otherwise provided in this chapter, the effect of any of its provisions may be varied by agreement. The presence in certain provisions of this chapter of the words “unless otherwise agreed,” or words of similar import, does not imply that the effect of other provisions may not be varied by agreement.

(e) Whether an electronic record or electronic signature has legal consequences is determined by this chapter and other applicable law.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 275 Construction and application

This chapter must be construed and applied:

(1) to facilitate electronic transactions consistent with other applicable law;

(2) to be consistent with reasonable practices concerning electronic transactions and with the continued expansion of those practices; and

(3) to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 276 Legal recognition of electronic records, electronic signatures, and electronic contracts

(a) A record or signature may not be denied legal effect or enforceability solely because it is in electronic form.

(b) A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation.

(d) If a law requires a signature, an electronic signature satisfies the law.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 277 Provision of information in writing; presentation of records

(a) If parties have agreed to conduct a transaction by electronic means and a law requires a person to provide, send, or deliver information in writing to another person, the requirement is satisfied if the information is provided, sent, or delivered, as the case may be, in an electronic record capable of retention by the recipient at the time of receipt. An electronic record is not capable of retention by the recipient if the sender or its information processing system inhibits the ability of the recipient to print or store the electronic record.

(b) If a law other than this chapter requires a record to be posted or displayed in a certain manner, to be sent, communicated, or transmitted by a specified method, or to contain information that is formatted in a certain manner, the following rules apply:

(1) The record must be posted or displayed in the manner specified in the other law.

(2) Except as otherwise provided in subdivision (d)(2) of this section, the record must be sent, communicated, or transmitted by the method specified in the other law.

(3) The record must contain the information formatted in the manner specified in the other law.

(c) If a sender inhibits the ability of a recipient to store or print an electronic record, the electronic record is not enforceable against the recipient.

(d) The requirements of this section may not be varied by agreement, but:

(1) to the extent a law other than this chapter requires information to be provided, sent, or delivered in writing but permits that requirement to be varied by agreement, the requirement under subsection (a) of this section that the information be in the form of an electronic record capable of retention may also be varied by agreement; and

(2) a requirement under a law other than this chapter to send, communicate, or transmit a record by first-class mail may be varied by agreement to the extent permitted by the other law.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 278 Attribution and effect of electronic record and electronic signature

(a) An electronic record or electronic signature is attributable to a person if it was the act of the person. The act of the person may be shown in any manner, including a showing of the efficacy of any security procedure applied to determine the person to which the electronic record or electronic signature was attributable.

(b) The effect of an electronic record or electronic signature attributed to a person under subsection (a) of this section is determined from the context and surrounding circumstances at the time of its creation, execution, or adoption, including the parties’ agreement, if any, and otherwise as provided by law.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 279 Effect of change or error

If a change or error in an electronic record occurs in a transmission between parties to a transaction, the following rules apply:

(1) If the parties have agreed to use a security procedure to detect changes or errors and one party has conformed to the procedure, but the other party has not, and the nonconforming party would have detected the change or error had that party also conformed, the conforming party may avoid the effect of the changed or erroneous electronic record.

(2) In an automated transaction involving an individual, the individual may avoid the effect of an electronic record that resulted from an error made by the individual or on the part of the individual in dealing with the electronic agent of another person if the electronic agent did not provide an opportunity for the prevention or correction of the error and, at the time the individual learns of the error, the individual:

(A) promptly notifies the other person of the error and that the individual did not intend to be bound by the electronic record received by the other person;

(B) takes reasonable steps, including steps that conform to the other person’s reasonable instructions, to return to the other person or, if instructed by the other person, to destroy the consideration received, if any, as a result of the erroneous electronic record; and

(3) If neither subdivision (1) nor (2) of this section applies, the change or error has the effect provided by other law, including the law of mistake, and the parties’ contract, if any.

(4) Subdivisions (2) and (3) of this section may not be varied by agreement.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 280 Notarization and acknowledgment

If a law requires a signature or record to be notarized, acknowledged, verified, or made under oath, the requirement is satisfied if the electronic signature of the person authorized to perform those acts, together with all other information required to be included by other applicable law, is attached to or logically associated with the signature or record.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 281 Retention of electronic records; originals

(a) If a law requires that a record be retained, the requirement is satisfied by retaining an electronic record of the information in the record that:

(1) accurately reflects the information set forth in the record at the time and after it was first generated in its final form as an electronic record or otherwise; and

(2) remains accessible to all persons who are entitled to access by statute, regulation, or rule of law, for the period required by such statute, regulation, or rule of law, in a form that is capable of being accurately reproduced for later reference, whether by transmission, printing, or otherwise.

(b) A requirement to retain a record in accordance with subsection (a) of this section does not apply to any information, the sole purpose of which is to enable the record to be sent, communicated, or received.

(c) A person may satisfy subsection (a) of this section by using the services of another person if the requirements of that subsection are satisfied.

(d) If a law requires a record to be presented or retained in its original form, or provides consequences if the record is not presented or retained in its original form, that law is satisfied by an electronic record retained in accordance with subsection (a) of this section.

(e) If a law requires retention of a check, that requirement is satisfied by retention of an electronic record of the information on the front and back of the check in accordance with subsection (a) of this section.

(f) A record retained as an electronic record in accordance with subsection (a) of this section satisfies a law requiring a person to retain a record for evidentiary, audit, or like purposes, unless a law enacted after January 1, 2004 specifically prohibits the use of an electronic record for the specified purpose.

(g) This section does not preclude a governmental agency of this State from specifying additional requirements for the retention of a record subject to the agency’s jurisdiction.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 282 Admissibility in evidence

In a proceeding, evidence of a record or signature may not be excluded solely because it is in electronic form.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 283 Automated transaction

In an automated transaction, the following rules apply:

(1) A contract may be formed by the interaction of electronic agents of the parties, even if no individual was aware of or reviewed the electronic agents’ actions or the resulting terms and agreements.

(2) A contract may be formed by the interaction of an electronic agent and an individual, acting on the individual’s own behalf or for another person, including by an interaction in which the individual performs actions that the individual is free to refuse to perform and which the individual knows or has reason to know will cause the electronic agent to complete the transaction or performance.

(3) The terms of the contract are determined by the substantive law applicable to it.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 284 Time and place of sending and receipt

(a) Unless otherwise agreed between the sender and the recipient, an electronic record is sent when it:

(1) is addressed properly or otherwise directed properly to an information processing system that the recipient has designated or uses for the purpose of receiving electronic records or information of the type sent and from which the recipient is able to retrieve the electronic record;

(2) is in a form capable of being processed by that system; and

(3) enters an information processing system outside the control of the sender or of a person that sent the electronic record on behalf of the sender or enters a region of the information processing system designated or used by the recipient that is under the control of the recipient.

(b) Unless otherwise agreed between the sender and the recipient, an electronic record is received when it:

(1) enters an information processing system that the recipient has designated or uses for the purpose of receiving electronic records or information of the type sent and from which the recipient is able to retrieve the electronic record; and

(2) is in a form capable of being processed by that system.

(c) Subsection (b) of this section applies even if the place the information processing system is located is different from the place the electronic record is deemed to be received under subsection (d) of this section.

(d) Unless otherwise expressly provided in the electronic record or agreed between the sender and the recipient, an electronic record is deemed to be sent from the sender’s place of business and to be received at the recipient’s place of business. For purposes of this subsection, the following rules apply:

(1) If the sender or recipient has more than one place of business, the place of business of that person is the place having the closest relationship to the underlying transaction.

(2) If the sender or the recipient does not have a place of business, the place of business is the sender’s or recipient’s residence, as the case may be.

(e) An electronic record is received under subsection (b) of this section even if no individual is aware of its receipt.

(f) Receipt of an electronic acknowledgment from an information processing system described in subsection (b) of this section establishes that a record was received but, by itself, does not establish that the content sent corresponds to the content received.

(g) If a person is aware that an electronic record purportedly sent under subsection (a) of this section, or purportedly received under subsection (b) of this section, was not actually sent or received, the legal effect of the sending or receipt is determined by other applicable law. Except to the extent permitted by the other law, the requirements of this subsection may not be varied by agreement.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 285 Transferable records

(a) In this section, “transferable record” means an electronic record that:

(1) would be a note under 9A V.S.A. § 3—104 or a document under 9A V.S.A. § 7—102 if the electronic record were in writing; and

(2) the issuer of the electronic record expressly has agreed is a transferable record.

(b) A person has control of a transferable record if a system employed for evidencing the transfer of interests in the transferable record reliably establishes that person as the person to which the transferable record was issued or transferred.

(c) A system satisfies subsection (b) of this section, and a person is deemed to have control of a transferable record, if the transferable record is created, stored, and assigned in such a manner that:

(1) a single authoritative copy of the transferable record exists that is unique, identifiable, and, except as otherwise provided in subdivisions (4), (5), and (6) of this subsection, unalterable;

(2) the authoritative copy identifies the person asserting control as:

(A) the person to which the transferable record was issued; or

(B) if the authoritative copy indicates that the transferable record has been transferred, the person to which the transferable record was most recently transferred;

(3) the authoritative copy is communicated to and maintained by the person asserting control or its designated custodian;

(4) copies or revisions that add or change an identified assignee of the authoritative copy can be made only with the consent of the person asserting control;

(5) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and

(6) any revision of the authoritative copy is readily identifiable as authorized or unauthorized.

(d) Except as otherwise agreed, a person having control of a transferable record is the holder, as defined in 9A V.S.A. § 1—201(b)(21), of the transferable record and has the same rights and defenses as a holder of an equivalent record or writing under Title 9A, including, if the applicable statutory requirements under 9A V.S.A. §§ 3—302(a), 7—501, or 9—308 are satisfied, the rights and defenses of a holder in due course, a holder to which a negotiable document of title has been duly negotiated, or a purchaser, respectively. Delivery, possession, and endorsement are not required to obtain or exercise any of the rights under this subsection.

(e) Except as otherwise agreed, an obligor under a transferable record has the same rights and defenses as an equivalent obligor under equivalent records or writings under Title 9A.

(f) If requested by a person against which enforcement is sought, the person seeking to enforce the transferable record shall provide reasonable proof that the person is in control of the transferable record. Proof may include access to the authoritative copy of the transferable record and related business records sufficient to review the terms of the transferable record and to establish the identity of the person having control of the transferable record.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 286 Preservation of rights and obligations

This chapter does not:

(1) limit, alter, or otherwise affect any requirement imposed by a statute, regulation, or rule of law relating to the rights and obligations of persons under such statute, regulation, or rule of law other than a requirement that contracts or other records be written, signed, or in nonelectronic form; or

(2) require any person to agree to use or accept electronic records or electronic signatures.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 287 Consumer disclosures

(a) Consent to Electronic Records. Notwithstanding other provisions of this chapter, if a statute, regulation, or other rule of law requires that information relating to a transaction or transactions be provided or made available to a consumer in writing, the use of an electronic record to provide or make available (whichever is required) such information satisfies the requirement that such information be in writing if:

(1) The consumer has affirmatively consented to such use and has not withdrawn such consent.

(2) The consumer, prior to consenting, is provided with a clear and conspicuous statement:

(A) informing the consumer of:

(i) any right or option of the consumer to have the record provided or made available on paper or in nonelectronic form; and

(ii) the right of the consumer to withdraw the consent to have the record provided or made available in an electronic form and of any conditions, consequences (which may include termination of the parties’ relationship), or fees in the event of such withdrawal;

(B) informing the consumer of whether the consent applies only to the particular transaction that gave rise to the obligation to provide the record, or to identified categories of records that may be provided or made available during the course of the parties’ relationship;

(C) describing the procedures the consumer must use to withdraw consent as provided in subdivision (a)(2)(A)(ii) of this section and to update information needed to contact the consumer electronically; and

(D) informing the consumer how, after the consent, the consumer may, upon request, obtain a paper copy of an electronic record, and whether any fee will be charged for such copy.

(3) The consumer:

(A) prior to consenting, is provided with a statement of the hardware and software requirements for access to and retention of the electronic records; and

(B) consents electronically, or confirms his or her consent electronically, in a manner that reasonably demonstrates that the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent.

(4) After the consent of a consumer in accordance with subdivision (a)(1) of this section, if a change in the hardware or software requirements needed to access or retain electronic records creates a material risk that the consumer will not be able to access or retain a subsequent electronic record that was the subject of the consent, the person providing the electronic record shall:

(A) provide the consumer with a statement of:

(i) the revised hardware and software requirements for access to and retention of the electronic records; and

(ii) the right to withdraw consent without the imposition of any fees for such withdrawal and without the imposition of any condition or consequence that was not disclosed under subdivision (a)(2)(A) of this section.

(B) again comply with subdivision (a)(3) of this section.

(b) Other Rights.

(1) Preservation of Consumer Protections. Nothing in this chapter affects the content or timing of any disclosure or other record required to be provided or made available to any consumer under any statute, regulation, or other rule of law.

(2) Verification or Acknowledgment. If a law that was enacted prior to July 1, 2003 expressly requires a record to be provided or made available by a specified method that requires verification or acknowledgment of receipt, the record may be provided or made available electronically only if the method used provides verification or acknowledgment of receipt (whichever is required).

(c) Effect of Failure to Obtain Electronic Consent or Confirmation of Consent. The legal effectiveness, validity, or enforceability of any contract executed by a consumer shall not be denied solely because of the failure to obtain electronic consent or confirmation of consent by that consumer in accordance with subdivision (a)(3)(B) of this section.

(d) Prospective Effect. Withdrawal of consent by a consumer shall not affect the legal effectiveness, validity, or enforceability of electronic records provided or made available to that consumer in accordance with subsection (a) of this section prior to implementation of the consumer’s withdrawal of consent. A consumer’s withdrawal of consent shall be effective within a reasonable period of time after receipt of the withdrawal by the provider of the record. Failure to comply with subdivision (a)(4) of this section may, at the election of the consumer, be treated as a withdrawal of consent for purposes of this section.

(e) Prior Consent. This section does not apply to any records that are provided or made available to a consumer who has consented prior to January 1, 2004 to receive such records in electronic form as permitted by any statute, regulation, or other rule of law.

(f) Oral Communications. An oral communication or a recording of an oral communication shall not qualify as an electronic record for purposes of this section except as otherwise provided under applicable law.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 288 Accuracy and ability to retain contracts and other records

Notwithstanding other provisions of this chapter, if a statute, regulation, or other rule of law requires that a contract or other record relating to a transaction be in writing, the legal effect, validity, or enforceability of an electronic record of such contract or other record may be denied if such electronic record is not in a form that is capable of being retained and accurately reproduced for later reference by all parties or persons who are entitled to retain the contract or other record.

(Added 2003, No. 44, § 1, eff. Jan. 1, 2004.)

§ 289 Procedures consistent with federal law

1966, No. 29, § 3, eff. at midnight Dec. 31, 1966.

Chapter 49 Factors' Liens

§§ 1851-1864 Repealed

[Repealed]

1966, No. 29, § 3, eff. at midnight Dec. 31, 1966.

Chapter 51 Miscellaneous Liens

Subchapter 1 Contractors' Liens for Labor or Material

§ 1921 Extent of lien; notice

(a) When a contract or agreement is made, whether in writing or not, for erecting, repairing, moving, or altering improvements to real property or for furnishing labor or material therefor, the person proceeding in pursuance of such contract or agreement shall have a lien upon such improvements and the lot of land on which the same stand to secure the payment of the same.

(b) A person who by virtue of a contract or agreement, either in writing or parol, with an agent, contractor, or subcontractor of the owner thereof, performs labor or furnishes materials for erecting, repairing, moving, or altering such improvements shall have a lien, to secure the payment of the same upon such improvements and the lot of land upon which the same stand, by giving notice in writing to such owner or his or her agent having charge of such property that he or she shall claim a lien for labor or material. The notice shall include the date that payment is due, if known. Such lien shall extend to the portions of the contract price remaining unpaid at the time such notice is received.

(c) A lien herein provided for shall not continue in force for more than 180 days from the time when payment became due for the last of such labor performed or materials furnished unless a notice of such lien is filed in the office of the town clerk as hereinafter provided.

(d) A lien under this section shall not take precedence over a deed or other conveyance to the extent that consideration therefor has been paid in good faith before record of such lien. Such lien shall not take precedence over a mortgage given by the owner thereof upon such building, property, or improvements and the lot of land on which the same stand, as security for the payment of money loaned and to be used by such owner in payment of the expenses of the same, if such mortgage is recorded before such lien is filed in the office of the town clerk as hereinafter provided. If such mortgagee shall receive written notice that any lien hereunder is to be claimed, such lien shall take precedence over such mortgage as to all advances thereafter made under such mortgage to such mortgagor, except such advances as the mortgagee may show were actually expended in completing such improvements to real property.

(e) The lot of land covered by such lien shall be deemed to be all of the land owned or held by the owner and used or designed for use in connection with such improvements, but such lien shall not extend to other adjacent lands used for purposes of profit.

(f) A lien under this section may not be waived in advance of the time such labor is performed or materials are furnished, and any provision calling for such advance waiver shall not be enforceable.

(Amended 1985, No. 128 (Adj. Sess.); 2003, No. 144 (Adj. Sess.), § 1.)

§ 1922 Effect of lien

Unless a person has satisfied or paid the claim upon which such lien is founded after the person has received written notice of a lien as provided for in subsection 1921(b) of this title, or unless the lien has not been perfected within the time required under section 1924 of this title, such person shall not deed, mortgage, or otherwise convey property that is subject to a lien as provided herein without disclosing such lien to the vendee or mortgagee in writing or stating the existence of the same in the instrument conveying or mortgaging such property. If the person shall fail so to disclose such lien, he or she shall be liable to the person injured in a civil action on this statute for the damages so sustained.

(Amended 2003, No. 144 (Adj. Sess.), § 2.)

§ 1923 Recording notice of lien

A person claiming a lien under section 1921 of this title shall file for record in the clerk’s office of the town where such real estate is situated a written memorandum, signed by him or her, asserting his or her claim, which shall charge such real estate with such lien as of the visible commencement of work or delivery of material to the extent and subject to the exceptions provided in sections 1921 and 1922 of this title. Several such liens, asserted as aforesaid, shall be paid pro rata, if the sum due or to become due from the owner thereof is not sufficient to pay the same in full.

§ 1924 Action to enforce lien

Within 180 days from the time of filing such memorandum, if such payment is due at the time of such filing and within 180 days from the time such payment becomes due, if not due at the time of such filing, such person may commence his or her action for the same and cause such real estate or other property to be attached thereon. If he or she obtains judgment in the action, the record of such judgment shall contain a brief statement of the contract upon which the same is founded.

(Amended 2003, No. 144 (Adj. Sess.), § 3.)

§ 1925 Foreclosure

Within five months after the date of such judgment, the plaintiff may cause a certified copy of the record thereof to be recorded in the office of the clerk of the town in which such real estate or other property is situated. Thereupon the same shall be holden for the amount due upon such judgment, with the costs of such copy and recording the same, as if it had been mortgaged for the payment thereof, from the time of the visible commencement of work or delivery of materials, subject, however, to the priorities provided in section 1921 of this title, and the plaintiff may obtain possession and foreclose the defendant’s equity of redemption as in case of a mortgage.

§ 1926 Death of landowner; effect on lien

When the owner of real estate dies after a lien has been recorded, or dies pending an action brought against him or her to enforce a lien on such real estate, the action or lien shall not abate or be affected by the death of such owner, but the executor or administrator of the deceased shall be cited in and the action shall proceed to final judgment against the representative of the deceased defendant. Such real estate shall be holden for the amount due upon such judgment, with the cost of the copy of the record of the judgment and recording, as if it had been mortgaged for the payment of the same, in like manner as if the deceased defendant were alive. Such lien shall not be enforced to the diminution of a right or interest given by law to the surviving husband or wife, as the case may be, or to the children of such deceased person.

§ 1927 Application to homestead

The provisions of this subchapter shall apply to property held as a homestead.

§ 1928 Married woman’s property

Under the provisions of this subchapter, the real estate of a married woman may be charged with a mechanic’s lien when she assents to the contract.

Subchapter 2 Artisan's Liens

§ 1951 Artisan’s lien

A person who makes, alters, launders, dry cleans, or repairs an article of personal property, at the request of the owner, shall have a lien thereon for his or her reasonable charges and may retain possession of the property until the same are paid.

§ 1952 Enforcement by sale

When the debt secured thereby remains unpaid for three months after such lien attaches, the person having such lien, except as provided in section 1954 of this title, may sell such property at public auction in the town where such lien accrues. Notice of the time, place, and purpose of such sale shall be posted in two or more public places in such town at least 10 days prior thereto, and he or she may apply the proceeds of such sale to the satisfaction of the debt due him or her and the expenses of such sale. The surplus remaining shall be paid to the proper owner thereof within 10 days thereafter, or deposited for his or her benefit in the treasury of the town where the sale occurs.

§ 1953 Notice of sale

At least 10 days prior thereto, notice in writing of the time and place of such sale and of the amount claimed to be due shall be given to the owner of such property, either personally, by mail, or by leaving the same at his or her place of abode, if a resident of this State. Otherwise such notice shall be given by publication thereof in some newspaper published in the town or county where such lien accrues, if there is one, and if not, by publication in a newspaper published in an adjoining county.

§ 1954 Price in dispute; tender by owner

When the owner of such article of personal property desires to question the reasonableness of such charges, he or she may within such three months make tender therefor, and the person having such lien shall bring a civil action within 30 days after such tender to determine the amount due if he or she does not elect to accept such tender. The defendant may give evidence of the tender under the general denial and, on proof thereof, if the plaintiff does not recover a greater sum than the amount tendered, the defendant shall recover his or her costs. In case tender is made as above provided and an action is not brought by the person having such lien, such lien shall terminate 30 days from the time of such tender. The foregoing provisions shall not be construed as exclusive of any other remedies that the parties now have by law.

Subchapter 3 Wage Liens

§ 1971 Unpaid wages; statutory lien; priority over subsequent mortgage or lien

(a) A statutory lien is created on the real and personal property of a corporation for up to 30 days of unpaid wages.

(b) The liability of a corporation to an employee for unpaid wages that were earned for a 30-day period prior to the filing of a new mortgage or other lien upon the property of the corporation, in all cases, shall be a first lien thereon, notwithstanding any mortgage or other lien thereon recorded after such wages were earned. Notice of the lien if on personal property shall be filed with the Secretary of State and, if on real property, in the land records, by the employee or the Department of Labor acting on behalf of one or more employees. An employee who is owed wages or the Department of Labor acting on behalf of one or more employees may file an action to execute on the lien in the Civil Division of the Superior Court in the county in which the corporation has its principal place of business in the State, or in the Civil Division of the Washington County Superior Court.

(Amended 2011, No. 124 (Adj. Sess.), § 1.)

§ 1972 Preference for wage liens

If a person or company is compelled to stop business by reason of an attachment upon mesne process and does not resume business within 30 days thereafter, an employee to whom such person or company is indebted for wages may attach the same property upon his or her debt. Such attachment shall take precedence over such prior attachment to an amount not exceeding $50.00 if made before sale thereof on execution.

Subchapter 4 Liens on Logs for Wages

§ 1991 Nature and extent of lien

A person cutting or drawing logs and acting under a contract with the owner thereof shall have a lien thereon for his or her wages that shall continue 60 days after the services are performed and have precedence of other claims except public taxes. Such lien shall not attach until the person claiming it files in the office of the clerk of the town where he or she performed the service, or if the town is unorganized, in the county clerk’s office, a brief statement of the contract under which he or she claims a lien and his or her purpose to enforce it against the property for the amount due for such service.

§ 1992 Action to enforce lien

Such lien shall be void against a subsequent purchaser, unless an action is brought and the logs attached thereon within 30 days from the time the plaintiff’s right of action accrues against the person for whom he or she performed the services, and shall be void as to all persons, unless an action is brought and the logs attached thereon within 60 days from such time.

§ 1993 Procedure for attaching logs

Such attachment shall be made by leaving a copy of the process in the office of the clerk of the town where the services were performed and also where the logs are located. If either town is unorganized, a copy of such process shall be left in the county clerk’s office.

Subchapter 5 Liens on Lumber Products; Registration of Marks

§ 2011 Nature and extent of lien; registered marks

If a person, firm, or corporation shall, by itself or others, make an advance or series of advances of money to the owner of, or person entitled to the possession of, any logs or pulpwood for the purpose of financing the cutting, hauling, yarding, piling, trucking, rafting, booming, driving, or towing of the same, it shall have a lien for the amount of all such advances, which shall take precedence over all claims, except taxes and liens provided for and enforceable under section 1991 of this title, and except all other liens legally acquired and filed or recorded prior to the placing of the registered mark thereon as herein provided, upon all of such logs or pulpwood on which it has caused its registered mark to be placed, and such lien with respect to such advances shall continue for all advances for two years after the date of making the last advance, and may be enforced by attachment. The term “registered mark” as used in the foregoing sentence means a mark described in a certificate of registration issued by the Secretary of State, pursuant to the provisions of section 2012 of this title, and recorded in the town clerk’s office for the town in which such logs or pulpwood were situated when such registered mark was placed thereon, or if the logs or pulpwood were situated in an unorganized town, gore, or grant, said registered mark must be recorded by the clerk of the county in which such unorganized town, gore, or grant is situated.

§ 2012 Registration of marks; regulations

Any person, firm, or corporation desiring to appropriate for its own exclusive use any distinctive mark to be placed upon logs or pulpwood for identification may file a copy of such mark, accompanied by a statement claiming the exclusive use thereof for such purpose, with the Secretary of State, who, if satisfied that such mark is not the duplicate of, or deceptively similar to, any such mark theretofore registered in his or her office, shall register, and issue to and in the name of such person, firm, or corporation a certificate of registration of such mark. The person, firm, or corporation in whose name such certificate of registration is issued shall be entitled to the exclusive use of the mark therein described for all purposes of this subchapter. The fee for such filing and recording and for a duly attested certificate of the record thereof shall be $10.00. The Secretary may make such rules and regulations and prescribe such forms as may be necessary to carry out the provisions of this subchapter.

§ 2013 Certified copies of certificates; fee

The town clerk shall receive a fee of $6.00 for recording a certified copy of any such certificate of registration.

(Amended 1971, No. 84, § 2; 1979, No. 161 (Adj. Sess.), § 2; 1993, No. 170 (Adj. Sess.), § 1; 2003, No. 70 (Adj. Sess.), § 5, eff. March 1, 2004.)

§ 2014 Recording; fees

No lien as provided for in this subchapter shall be valid, except as against the person to whom such advances were made, until written notice of advances made or to be made is recorded with the town clerk of the town wherein such logs or pulpwood are situated, or if the logs or pulpwood are situated in an unorganized town, gore, or grant, said written notice must be recorded by the clerk of the county in which such unorganized town, gore, or grant is situated. Five dollars shall be paid to the town or county clerk for recording said written notice.

(Amended 1971, No. 84, § 3; 1979, No. 161 (Adj. Sess.), § 3.)

Subchapter 6 Liens on Ships for Labor or Material

§ 2031 Lien for labor and materials; enforcement

A person who performs labor or furnishes materials in building, repairing, fitting, or furnishing a ship, vessel, or steamboat shall have a lien thereon for his or her wages and materials until eight months after it is completed, and may secure the same by attachment thereof. Such attachment shall have precedence of all other attachments and claims.

§ 2032 Prerequisites for lien

Before such lien attaches, such person shall present a claim for his or her services performed or materials furnished and shall demand payment of the same of the owner, agent, contractor, or person in whose care such ship, vessel, or steamboat is. Upon such demand, a payment or tender of the just amount due him or her shall discharge such lien.

Subchapter 7 Federal Liens

§ 2051 Filing in town clerk’s office

Notices of liens upon real or personal property for taxes or other obligations payable to the United States of America, certificates and notices affecting the liens, and certificates discharging the liens shall be filed in the office of the town clerk of the town in this State within which the property subject to the lien is situated.

(Amended 1987, No. 226 (Adj. Sess.), § 1.)

§ 2052 Recording of notice of lien

When a notice of a federal lien is filed, the town clerk shall forthwith record the same in alphabetical order in a book kept for that purpose with the date and hour of filing the lien. A town clerk shall keep on file in the clerk’s office the notices of these liens. Liens filed under this section shall be indexed in accordance with 24 V.S.A. § 1153 or 1161.

(Amended 1987, No. 226 (Adj. Sess.), § 2.)

§ 2053 Discharge of lien

When a certificate of discharge of a federal lien is filed in the office of the town clerk, the town clerk shall enter the same, with the date of filing, upon the same page of the record where the notice of the lien is filed, and permanently attach the original certificate of discharge to the original notice of the lien.

(Amended 1987, No. 227 (Adj. Sess.), § 3.)

Subchapter 8 Liens on Animals

§ 2071 Liens for service of stallions

Colts foaled in this State and the mare producing the same shall be subject to a lien to secure the payment of the service fee of the stallion. Such lien shall continue in force until the colt is eight months old and may be enforced by attachment of such colt or mare at any time after the colt is four months old. Such lien shall take precedence of any other claim upon such colt, subject to the conditions of sections 2072-2074 of this title.

§ 2072 Filing of statement claiming lien

On or before April 1, or within 30 days after such stallion is brought into such town, the owner or manager of the stallion shall annually file in the office of the clerk of the town where such stallion is kept a declaration of an intention to claim such lien and a statement containing the name and age of such stallion, his pedigree for two generations, if known, and the terms of service. A copy of such statement shall be furnished the owner of each mare served and all bills or posters advertising such stallion shall contain a copy of such statement.

§ 2073 False statements in claim of lien

If the owner or manager in such statement makes a false representation regarding the pedigree of such stallion, the lien for such service shall be discharged and the service fee thereon secured shall be forfeited.

§ 2074 Penalty for fraudulent sale of mare

When the owner or manager of a stallion has complied with the requirements of section 2072 of this title, if the owner or person in whose name a mare has been mated with such stallion for breeding purposes disposes of such mare by sale or otherwise before foaling time without first settling with the owner or manager for the service of the stallion, or within 10 days after the disposal of the mare, he or she shall be subject to the same penalties that he or she would be for disposing of a colt encumbered by a lien. If such mare is returned for trial to the stallion after three weeks from the date of the last service and found not to have become pregnant and is not again served during that breeding season, the provisions of this section shall not apply to the disposal of such mare.

§ 2075 Lien for keeping or pasturing animals

A person to whom charges are due for pasturing, boarding, or keeping domestic animals placed with the consent of the owner thereof in his or her care, if the charges become due while such animals remain in his or her possession, may retain the same until such charges are paid. After 30 days from the time the charges become due, he or she may sell such animals in the manner provided for the sale of property under a lien for repairs, if such charges remain unpaid.

Subchapter 9 Miscellaneous Provisions

§ 2091 Attachment not waiver of implied lien

A person holding personal property by a lien implied by law to ensure the payment of the debt secured by such lien, may cause the property to be attached on mesne process and sold on execution and such attachment shall not be a waiver of the lien.

Chapter 53 Assignment for Benefit of Creditors

§ 2151 Nature and form of assignment

An assignment of property, including choses in action, by a debtor for the benefit of creditors shall be in writing and signed by the debtor. If real estate is assigned, it shall be by deed, executed and recorded in the same manner as a conveyance of real estate. Such assignment shall be for the benefit of all the creditors of the assignor in proportion to their respective claims. An assignment shall not be valid against a creditor of the assignor if the assignee is a creditor or interested in the provisions of the assignment.

§ 2152 Schedule; list of creditors

Assignments shall be specific and accompanied by a full inventory or schedule of the property assigned, including choses in action, and with a list of the creditors to be benefited by the assignment and the sums due each one as near as may be.

§ 2153 Copy of assignment to be filed

The assignor and assignee shall file in the clerk’s office in the county where the assignor resides, and also where the property assigned is situated at the time of making such assignment, a copy of the assignment and inventory, including choses in action, and of the list of creditors to be benefited by the assignment, to remain on file for the use and inspection of persons interested.

§ 2154 Assignee’s bond

The assignee shall execute to the Superior Court for the unit in which the assignor resides a bond with sureties to the satisfaction of such court and conditioned for the faithful performance of such trust. The assignee shall execute such bond at the time of making such assignment, and the same may be prosecuted by parties aggrieved as provided in 14 V.S.A. chapter 101, relative to bonds governed by that chapter.

(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 60.)

§ 2155 Failure to file copy of assignment or to execute bond

Unless such copies are filed as directed in section 2153 of this title and such bond is executed as directed in section 2154 of this title, the property so assigned shall be liable to trustee process and to attachment and execution at the suit of the creditors of the assignor, as if an assignment had not been made.

§ 2156 Assignee’s duties

The assignee shall proceed with reasonable dispatch in the discharge of his or her trust to the completion of the same. When completed, he or she shall file with the clerk of such Superior Court a copy of the settlement of his or her trust account showing in detail how he or she has administered the trust, which account shall be verified by the oath of the assignee as a true and just account, and the same shall remain on file in such office for the inspection of the creditors of the assignor.

(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)

§ 2157 Application to Superior judge for settlement of account by assignee

If, in the opinion of a creditor of the assignor named in the assignment, the assignee neglects to settle his or her trust and file a copy of his or her account with the county clerk for an unreasonable length of time, such creditor may apply to a Superior judge for an order upon the assignee to settle the same and file with the clerk of such court a copy of his or her trust account verified by oath within such time as the Superior judge deems proper.

§ 2158 Powers of Superior judge

The Superior judge may hear such application upon notice being given to the assignee, make necessary orders in the premises, and allow or refuse costs upon such application and hearing as he or she thinks equitable. He or she shall enforce the orders made by him or her according to the usages of a Superior Court and proceed against the assignee for a disobedience to the order of the Superior judge as for a contempt.

Chapter 55 Assignment of Accounts Receivable

§§ 2211-2224 Repealed

[Repealed]

1966, No. 29, § 3, eff. at midnight Dec. 31, 1966.

Chapter 57 Voidable Transactions and False Checks

Subchapter 1 Voidable Transactions

§§ 2281-2283 Repealed

[Repealed]

1995, No. 179 (Adj. Sess.), § 15.

§ 2285 Definitions

As used in this chapter:

(1) “Affiliate” means:

(A) a person who directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than a person who holds the securities:

(i) as a fiduciary or agent without sole discretionary power to vote the securities; or

(ii) solely to secure a debt, if the person has not exercised the power to vote;

(B) a corporation, 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote by the debtor, or a person that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than a person that holds the securities:

(i) as a fiduciary or agent without sole discretionary power to vote the securities; or

(ii) solely to secure a debt, if the person has not in fact exercised the power to vote;

(C) a person whose business is operated by the debtor under a lease or other agreement, or a person substantially all of whose assets are controlled by the debtor; or

(D) a person who operates the debtor’s business under a lease or other agreement or controls substantially all of the debtor’s assets.

(2) “Asset” means property of a debtor, but the term does not include:

(A) property to the extent it is encumbered by a valid lien;

(B) property to the extent it is generally exempt under nonbankruptcy law; or

(C) an interest in property held in tenancy by the entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant.

(3) “Claim,” except as used in “claim for relief,” means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.

(4) “Creditor” means a person who has a claim.

(5) “Debt” means liability on a claim.

(6) “Debtor” means a person who is liable on a claim.

(7) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

(8) “Insider” includes:

(A) if the debtor is an individual,

(i) a relative of the debtor or of a general partner of the debtor;

(ii) a partnership in which the debtor is a general partner;

(iii) a general partner in a partnership described in subdivision (A)(ii) of this subdivision (8);

(iv) a corporation of which the debtor is a director, officer, or person in control;

(v) a member-managed limited liability company in which the debtor is a member, a manager-managed limited liability company in which the debtor is a manager, or any limited liability company in which the debtor is in control; or

(vi) a member in a member-managed limited liability company or a manager in a manager-managed limited liability company as described in subdivision (A)(v) of this subdivision (8);

(B) if the debtor is a corporation,

(i) a director of the debtor;

(ii) an officer of the debtor;

(iii) a person in control of the debtor;

(iv) a partnership in which the debtor is a general partner;

(v) a general partner in a partnership described in subdivision (B)(iv) of this subdivision (8); or

(vi) a relative of a general partner, director, officer, or person in control of the debtor;

(i) a general partner in the debtor;

(ii) a relative of a general partner in, a general partner of, or a person in control of the debtor;

(iii) another partnership in which the debtor is a general partner;

(iv) a general partner in a partnership described in subdivision (C)(iii) of this subdivision (8); or

(v) a person in control of the debtor;

(D) if the debtor is a limited liability company,

(i) a member of the member-managed limited liability company;

(ii) a manager of the manager-managed limited liability company;

(iii) a partnership in which the debtor is a general partner;

(iv) a general partner in a partnership described in subdivision (D)(iii) of this subdivision (8); or

(v) a person in control of the debtor;

(E) an affiliate, or an insider of an affiliate as if the affiliate were the debtor; and

(F) a managing agent of the debtor.

(9) “Lien” means a charge against or an interest in property to secure payment of a debt or performance of an obligation, and includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common-law lien, or a statutory lien.

(10) “Organization” means a person other than an individual.

(11) “Person” means an individual, partnership, corporation, limited liability company, association, organization, government or governmental subdivision or agency, business trust, estate, trust, or any other legal or commercial entity.

(12) “Property” means anything that may be the subject of ownership.

(13) “Relative” means an individual related by consanguinity within the third degree as determined by the common law, a spouse, or an individual related to a spouse within the third degree as so determined, and includes an individual in an adoptive relationship within the third degree.

(14) “Sign” means, with present intent to authenticate or adopt a record:

(A) to execute or adopt a tangible symbol; or

(B) to attach to or logically associate with the record an electronic symbol, sound, or process.

(15) “Transfer” means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, and creation of a lien or other encumbrance.

(16) “Valid lien” means a lien that is effective against the holder of a judicial lien subsequently obtained by legal or equitable process or proceedings.

(Added 1995, No. 179 (Adj. Sess.), § 14; amended 2017, No. 20, § 1.)

§ 2286 Insolvency

(a) A debtor is insolvent if, at a fair valuation, the sum of the debtor’s debts is greater than the sum of the debtor’s assets.

(b) A debtor who is generally not paying his or her debts as they become due other than as a result of a bona fide dispute is presumed to be insolvent. The presumption imposes on the party against which the presumption is directed the burden of proving that the nonexistence of insolvency is more probable than its existence.

(c) Assets under this section do not include property that has been transferred, concealed, or removed with the intent to hinder, delay, or defraud creditors or that has been transferred in a manner making the transfer voidable under this chapter.

(d) Debts under this section do not include an obligation to the extent it is secured by a valid lien on property of the debtor not included as an asset.

(Added 1995, No. 179 (Adj. Sess.), § 14; amended 2017, No. 20, § 1; 2021, No. 20, § 10.)

§ 2287 Value

(a) Value is given for a transfer or an obligation if, in exchange for the transfer or obligation, property is transferred or an antecedent debt is secured or satisfied, but value does not include an unperformed promise made otherwise than in the ordinary course of the promisor’s business to furnish support to the debtor or another person.

(b) For the purposes of subdivision 2288(a)(2) and section 2289 of this title, a person gives a reasonably equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, nonconclusive foreclosure sale or execution of a power of sale for the acquisition or disposition of the interest of the debtor upon default under a mortgage, deed of trust, or security agreement.

(c) A transfer is made for present value if the exchange between the debtor and the transferee is intended by them to be contemporaneous and is in fact substantially contemporaneous.

(Added 1995, No. 179 (Adj. Sess.), § 14.)

§ 2288 Transfer or obligation voidable as to present or future creditor

(a) A transfer made or obligation incurred by a debtor is voidable as to a creditor, whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:

(1) with actual intent to hinder, delay, or defraud any creditor of the debtor; or

(2) without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:

(A) was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or

(B) intended to incur, or believed or reasonably should have believed that he or she would incur, debts beyond his or her ability to pay as they became due.

(b) In determining actual intent under subdivision (a)(1) of this section, consideration may be given, among other factors, to whether:

(1) the transfer or obligation was to an insider;

(2) the debtor retained possession or control of the property transferred after the transfer;

(3) the transfer or obligation was disclosed or concealed;

(4) before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;

(5) the transfer was of substantially all the debtor’s assets;

(6) the debtor absconded;

(7) the debtor removed or concealed assets;

(8) the value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred;

(9) the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;

(10) the transfer occurred shortly before or shortly after a substantial debt was incurred; and

(11) the debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor.

(c) A creditor making a claim for relief under subsection (a) of this section has the burden of proving the elements of the claim for relief by a preponderance of the evidence.

(Added 1995, No. 179 (Adj. Sess.), § 14; amended 2017, No. 20, § 1.)

§ 2289 Transfer or obligation voidable as to present creditor

(a) A transfer made or obligation incurred by a debtor is voidable as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.

(b) A transfer made by a debtor is voidable as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt, the debtor was insolvent at that time, and the insider had reasonable cause to believe that the debtor was insolvent.

(c) Subject to subsection 2286(b) of this title, a creditor making a claim for relief under subsection (a) or (b) of this section has the burden of proving the elements of the claim for relief by a preponderance of the evidence.

(Added 1995, No. 179 (Adj. Sess.), § 14; amended 2017, No. 20, § 1.)

§ 2290 When transfer is made or obligation is incurred

For the purposes of this chapter:

(1) a transfer is made:

(A) with respect to an asset that is real property other than a fixture, but including the interest of a seller or purchaser under a contract for the sale of the asset, when the transfer is so far perfected that a good-faith purchaser of the asset from the debtor against whom applicable law permits the transfer to be perfected cannot acquire an interest in the asset that is superior to the interest of the transferee; and

(B) with respect to an asset that is not real property or that is a fixture, when the transfer is so far perfected that a creditor on a simple contract cannot acquire a judicial lien otherwise than under this chapter that is superior to the interest of the transferee;

(2) if applicable law permits the transfer to be perfected as provided in subdivision (1) of this section and the transfer is not so perfected before the commencement of an action for relief under this chapter, the transfer is deemed made immediately before the commencement of the action;

(3) if applicable law does not permit the transfer to be perfected as provided in subdivision (1) of this section, the transfer is made when it becomes effective between the debtor and the transferee;

(4) a transfer is not made until the debtor has acquired rights in the asset transferred;

(5) an obligation is incurred:

(A) if oral, when it becomes effective between parties; or

(B) if evidenced by a record, when the record signed by the obligor is delivered to or for the benefit of the obligee.

(Added 1995, No. 179 (Adj. Sess.), § 14; amended 2017, No. 20, § 1.)

§ 2291 Remedies of creditor

(a) In an action for relief against a transfer or obligation under this chapter, a creditor, subject to the limitations in section 2292 of this title, may obtain:

(1) avoidance of the transfer or obligation to the extent necessary to satisfy the creditor’s claim;

(2) an attachment or other provisional remedy against the asset transferred or other property of the transferee in accordance with the procedure prescribed by the Vermont Rules of Civil Procedure;

(3) subject to applicable principles of equity and in accordance with applicable Rules of Civil Procedure:

(A) an injunction against further disposition by the debtor or a transferee, or both, of the asset transferred or of other property;

(B) appointment of a receiver to take charge of the asset transferred or of other property of the transferee; or

(b) If a creditor has obtained a judgment on a claim against the debtor, the creditor, if the court so orders, may levy execution on the asset transferred or its proceeds.

(Added 1995, No. 179 (Adj. Sess.), § 14; amended 2017, No. 20, § 1.)

§ 2292 Defenses, liability, and protection of transferee or obligee

(a) A transfer or obligation is not voidable under subdivision 2288(a)(1) of this title against a person who took in good faith and for a reasonably equivalent value or against any subsequent transferee or obligee.

(b) To the extent a transfer is avoidable in an action by a creditor under subdivision 2291(a)(1) of this title, the following rules apply:

(1) Except as otherwise provided in this section, the creditor may recover judgment for the value of the asset transferred, as adjusted under subsection (c) of this section, or the amount necessary to satisfy the creditor’s claim, whichever is less. The judgment may be entered against:

(A) the first transferee of the asset or the person for whose benefit the transfer was made; or

(B) an immediate or mediate transferee of the first transferee, other than:

(i) a good-faith transferee who took for value; or

(ii) an immediate or mediate good-faith transferee of a person described in subdivision (1)(B)(i) of this subsection (b).

(2) Recovery pursuant to subdivision 2291(a)(1) or subsection 2291(b) of this title of or from the asset transferred or its proceeds, by levy or otherwise, is available only against a person described in subdivision (1)(A) or (1)(B) of this subsection.

(c) If the judgment under subsection (b) of this section is based upon the value of the asset transferred, the judgment must be for an amount equal to the value of the asset at the time of the transfer, subject to adjustment as the equities may require.

(d) Notwithstanding voidability of a transfer or an obligation under this chapter, a good-faith transferee or obligee is entitled, to the extent of the value given the debtor for the transfer or obligation, to:

(1) a lien on or a right to retain any interest in the asset transferred;

(2) enforcement of any obligation incurred; or

(3) a reduction in the amount of the liability on the judgment.

(e) A transfer is not voidable under subdivision 2288(a)(2) or section 2289 of this title if the transfer results from:

(1) termination of a lease upon default by the debtor when the termination is pursuant to the lease and applicable law;

(2) enforcement of a security interest in compliance with 9A V.S.A. Article 9, other than acceptance of collateral in full or partial satisfaction of the obligation it secures; or

(3) foreclosure of a mortgage in compliance with 12 V.S.A. chapter 172.

(f) A transfer is not voidable under subsection 2289(b) of this title:

(1) to the extent the insider gave new value to or for the benefit of the debtor after the transfer was made, except to the extent the new value was secured by a valid lien;

(2) if made in the ordinary course of business or financial affairs of the debtors and the insider; or

(3) if made pursuant to a good-faith effort to rehabilitate the debtor, and the transfer secured present value given for that purpose as well as an antecedent debt of the debtor.

(g) The following rules determine the burden of proving matters referred to in this section:

(1) A party that seeks to invoke subsection (a), (d), (e), or (f) of this section has the burden of proving the applicability of that subsection.

(2) Except as otherwise provided in subdivisions (3) and (4) of this subsection, the creditor has the burden of proving each applicable element of subsection (b) or (c) of this section.

(3) The transferee has the burden of proving the applicability to the transferee of subdivision (b)(1)(B)(i) or (ii) of this section.

(4) A party that seeks adjustment under subsection (c) of this section has the burden of proving the adjustment.

(h) The standard of proof required to establish matters referred to in this section is preponderance of the evidence.

(Added 1995, No. 179 (Adj. Sess.), § 14; amended 2005, No. 133 (Adj. Sess.), § 1, eff. May 5, 2006; 2013, No. 194 (Adj. Sess.), § 3, eff. June 17, 2014; 2017, No. 20, § 1.)

§ 2293 Extinguishment of claim for relief

A claim for relief with respect to a transfer or obligation under this chapter is extinguished unless action is brought:

(1) under subdivision 2288(a)(1) of this title, not later than four years after the transfer was made or the obligation was incurred or, if later, not later than one year after the transfer or obligation was or could reasonably have been discovered by the claimant;

(2) under subdivision 2288(a)(2) or subsection 2289(a) of this title, not later than four years after the transfer was made or the obligation was incurred;

(3) under subsection 2289(b) of this title, not later than one year after the transfer was made or the obligation was incurred; or

(4) pursuant to the provisions of 32 V.S.A. chapter 133, subchapter 9 for a tax sale, not later than two years after the tax collector’s deed is delivered to the successful bidder at the tax sale.

(Added 1995, No. 179 (Adj. Sess.), § 14; amended 2017, No. 20, § 1; 2017, No. 117 (Adj. Sess.), § 1.)

§ 2294 Governing law

(a) In this section, the following rules determine a debtor’s location:

(1) A debtor who is an individual is located at the individual’s principal residence.

(2) A debtor that is an organization and has only one place of business is located at its place of business.

(3) A debtor that is an organization and has more than one place of business is located at its chief executive office.

(b) A claim for relief in the nature of a claim for relief under this chapter is governed by the local law of the jurisdiction in which the debtor is located when the transfer is made or the obligation is incurred.

(Added 2017, No. 20, § 1.)

§ 2295 Application to series organization

(a) In this section:

(1) “Protected series” means an arrangement, however denominated, created by a series organization that, pursuant to the law under which the series organization is organized, has the characteristics set forth in subdivision (2) of this subsection.

(2) “Series organization” means an organization that, pursuant to the law under which it is organized, has the following characteristics:

(A) The organic record of the organization provides for creation by the organization of one or more protected series, however denominated, with respect to specified property of the organization, and for records to be maintained for each protected series that identify the property of or associated with the protected series.

(B) Debt incurred or existing with respect to the activities of, or property of or associated with, a particular protected series is enforceable against the property of or associated with the protected series only, and not against the property of or associated with the organization or other protected series of the organization.

(C) Debt incurred or existing with respect to the activities or property of the organization is enforceable against the property of the organization only, and not against the property of or associated with a protected series of the organization.

(b) A series organization and each protected series of the organization is a separate person for purposes of this chapter, even if for other purposes a protected series is not a person separate from the organization or other protected series of the organization.

(Added 2017, No. 20, § 1.)

§ 2296 Supplementary provisions

Unless displaced by the provisions of this chapter, the principles of law and equity, including the law merchant and the law relating to principal and agent, estoppel, laches, fraud, misrepresentation, duress, coercion, mistake, insolvency, or other validating or invalidating cause, supplement the provisions of this chapter.

(Added 1995, No. 179 (Adj. Sess.), § 14; amended 2017, No. 20, § 1.)

§ 2297 Uniformity of application and construction

This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.

(Added 1995, No. 179 (Adj. Sess.), § 14; amended 2017, No. 20, § 1.)

§ 2298 Relation to Electronic Signatures in Global and National Commerce Act

This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7001 et seq., but does not modify, limit, or supersede 15 U.S.C. § 7001(c), or authorize electronic delivery of any of the notices described in 15 U.S.C. § 7003(b).

(Added 2017, No. 20, § 1.)

§ 2299 Short title

This chapter, which was formerly cited as the Uniform Fraudulent Transfer Act, may be cited as the Uniform Voidable Transactions Act.

(Added 2017, No. 20, § 1.)

Subchapter 2 False Checks, Drafts, or Orders

§ 2311 Civil remedy for bad checks; damages

(a) In any action against a person who makes, issues, or draws any check, draft, or order for the payment of money that has been dishonored for lack of funds or credit to pay the same, or because the maker, issuer, or drawer has no account with the drawee, the holder may recover from the maker, issuer, or drawer court costs, costs of service, the amount of the check, draft, or order, bank fees, interest, attorney’s fees, and damages in the amount of $50.00. A holder may only recover attorney’s fees and damages under this section if the holder gives notice pursuant to this section for payment of the check, draft, or order and the maker, issuer, or drawer fails to tender within 30 days of the date of notice an amount equal to the amount of the check, draft, or order, plus bank fees and mailing costs.

(b) As used in this section:

(1) “Dishonored” includes a stop payment order issued without cause.

(2) “Notice” means notice given to the maker, drawer, or issuer of the check, draft, or order in writing. Notice in writing shall include the date the check was written, the person to whom the check was made payable, bank fees, mailing costs, the amount of the check, and the date by which payment should be made. Notice in writing shall be conclusively presumed to have been given:

(A) when properly mailed by certified mail and by first-class mail, addressed to the maker, drawer, or issuer at the address as it appears on the check, draft, or order or at the last known address; or

(B) if:

(i) the notice has been properly mailed by first-class mail addressed to the maker, drawer, or issuer at the address as it appears on the check, draft, or order or at the last known address;

(ii) the notice is supported by an affidavit of service by mailing; and

(iii) three days have gone by after the date the affidavit is executed.

(Amended 1971, No. 185 (Adj. Sess.), § 23, eff. March 29, 1972; 1971, No. 254 (Adj. Sess.), § 2, eff. April 11, 1972; 1987, No. 260 (Adj. Sess.); 2005, No. 60, § 1.)

§ 2312 Prima facie evidence of knowledge

As against the maker or drawer thereof, the making, drawing, uttering, or delivery of such check, draft, or order, the payment of which is refused by the drawee for the reason that the maker or drawer has not sufficient funds in or credit with such bank or other depository for the payment of such check, draft, or order in full upon its presentation, shall be prima facie evidence of knowledge at the time of such making, drawing, uttering, or delivery that the maker or drawer did not have sufficient funds in or credit with such bank or other depository for the payment of such check, draft, or order in full upon its presentation, unless such maker or drawer shall pay such check, draft, or order, with all costs and protest fees, within eight days after receiving notice that the same has not been paid by the drawee.

Chapter 59 Motor Vehicle Retail Installment Sales Financing

§ 2351 Definitions

As used in this chapter only, unless the context otherwise requires:

(1) “Motor vehicle” means and is limited to the following:

(A) all vehicles propelled or drawn by power other than muscular power, except when two or more such vehicles are purchased at the same time;

(B) trailers and semi-trailers, as defined in 23 V.S.A. § 4(40), except when two or more such trailers or semi-trailers are purchased at the same time; and

(2) “Retail buyer” or “buyer” means a person who agrees to buy or buys a motor vehicle other than principally for the purpose of resale, or other than principally for a commercial purpose, from a retail seller in a retail installment transaction.

(3) “Retail seller” or “seller” means a person engaged in the business of selling motor vehicles to retail buyers in retail installment transactions and includes an owner of a mobile home park who sells mobile homes to residents of the park, whether or not the sales are the principal business of the park owner.

(4) “Retail installment transaction” or “transaction” means any transaction in which a retail buyer purchases a motor vehicle from a retail seller under a retail installment contract for a time sale price consisting of a cash sale price and other amounts as limited by this chapter and agrees to pay part or all of the price in one or more deferred installments. The term shall include every transaction wherein the promise or agreement to pay the deferred balance of such price is made by the retail buyer to the retail seller notwithstanding the existence or occurrence of any one or more of the following events:

(A) that the retail seller has arranged or arranges to sell, transfer, or assign the retail buyer’s obligation;

(B) that the amount of the finance charge is determined by reference to charts or information furnished by a financing institution;

(C) that the forms of instruments used to evidence the retail installment transaction are furnished by a financing institution; and

(D) that the credit standing of the retail buyer is or has been evaluated by a financing institution.

(5) “Retail installment contract” or “contract” means a contract entered into in this State evidencing a retail installment transaction under which the title to or a lien or security in the motor vehicle, which is the subject matter of the transaction, is retained or taken to secure the retail buyer’s obligations. The term includes a chattel mortgage, conditional sale contract, and a contract in the form of a bailment or a lease if the bailee or lessee contracts to pay as compensation for use a sum substantially equivalent to or in excess of the value of the motor vehicle sold, and it is agreed that the bailee or lessee is bound to become or, for no further or a merely nominal consideration, has the option of becoming the owner of the motor vehicle upon full compliance with the provisions of the bailment or lease. The term shall also include any amendment of the retail installment contract in which the parties agree to renew, restate, or reschedule the unpaid balance thereof, or to extend the scheduled due date of all or any part of any installment or installments.

(6) “Cash price” means the minimum price for which the motor vehicle, including accessories, subject to the retail installment contract or another motor vehicle of like kind and quality, including similar accessories, may be purchased for cash from the seller by the buyer.

(7) “Official fees” means the amount of the fees prescribed by law for filing, recording, or otherwise perfecting a retained title, lien, or other security interests created in a retail installment transaction.

(8) “Principal balance” means the cash sale price of the motor vehicle plus the amounts, if any, included in the retail installment contract, if a separate identified charge is stated therein, for insurance and other benefits and official fees, less the amount of the buyer’s down payment, if any, in money or goods, or both.

(9) “Finance charge” means the estimated amount to be added to the principal balance to determine the balance of the buyer’s indebtedness to be paid under a retail installment contract.

(10) “Sales finance company” means a person engaged in the business of purchasing or otherwise acquiring from one or more sellers retail installment contracts.

(11) “Holder” means the retail seller of the motor vehicle or the sales finance company or other assignee if the retail installment contract is purchased or otherwise acquired by a sales finance company or other assignee.

(12) “Administrator” means the Commissioner of Financial Regulation.

(13) “Person” means an individual, partnership, joint venture, corporation, banking organization, association, or any other group however organized.

(14) Words of the masculine gender include the feminine and the neuter, and when the sense so indicates, words of the neuter gender may refer to any gender.

(15) “Commercial purpose” means a purpose related to the production, exhibition, marketing, transportation, processing, or manufacture of goods or services by any person, where the cash price of the motor vehicle, exclusive of any finance charges, exceeds the sum of $20,000.00.

(16) “Commercial lease” means a transfer of the right to possession and use of a motor vehicle for a term in return for consideration, including leases intended as security, and where the vehicle is to be used by the lessee primarily for commercial, industrial, or agricultural use and not for personal, family, or household use.

(Added 1961, No. 227, § 1, eff. Jan. 1, 1962; amended 1979, No. 20, §§ 1, 2, eff. April 10, 1979; 1989, No. 122, §§ 2, 3, eff. June 30, 1989; 1989, 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2003, No. 104 (Adj. Sess.), § 2.)

§§ 2352, 2353 Repealed

[Repealed]

1995, No. 162 (Adj. Sess.), § 39(b), eff. Jan. 1, 1997.

§ 2354 Investigations and complaints; powers of Administrator

(a) The Administrator, if he or she has reasonable cause to believe that any licensee or other person has violated any of the provisions of this chapter, may make such investigation as he or she shall deem necessary, and, to the extent necessary for this purpose, the Administrator or his or her authorized representative may examine the licensee or any other person and shall have the power to compel the production of all relevant books, records, and documents.

(b) Any buyer having reason to believe that this chapter has been violated with respect to this retail installment contract may file with the Administrator a written complaint setting forth the details of the alleged violation.

(c) The Administrator may issue subpoenas to compel the attendance of witnesses and the production of books, records, documents, and other evidence before him or her in any matter over which he or she has jurisdiction, control, or supervision pertaining to this chapter. The Administrator shall have the power to administer oaths and affirmations to any person whose testimony is required.

(Added 1961, No. 227, § 4, eff. Jan. 1, 1962.)

§ 2355 Requirements and prohibitions as to retail installment contracts

(a) Each retail installment contract shall be in writing, dated, signed by both the buyer and the seller, and completed as to all essential provisions before it is signed by the buyer. A retail installment contract need not be contained in a single document.

(b) The printed portion of the retail installment contract, other than instructions for completion, shall be in a size equal to at least eight-point type. The contract shall contain substantially the following notice in a size equal to at least 10-point bold type and shall appear directly above the buyer’s signature:

“NOTICE TO RETAIL BUYER

Do not sign this contract in blank. You are entitled to a copy of the contract at the time you sign. Keep it to protect your legal rights.”

(c) A retail installment contract shall also contain, in a size equal to at least 10-point bold type, a specific statement that liability insurance coverage for bodily injury and property damage caused to others is not included, if that is the case.

(d) The seller shall deliver to the buyer at the time of the execution of the contract, and if it contains blank spaces as provided in subsection (j) of this section, mail to him or her at his or her address shown on the retail installment contract a copy of the contract as accepted by the seller. Until the seller does so, a buyer who has not received delivery of the motor vehicle may rescind his or her contract and receive a refund of all payments made and a return of all goods traded in to the seller on account of or in contemplation of the contract or, if the goods traded in cannot be returned, the value thereof. Any acknowledgment by the buyer of delivery of a copy of the retail installment contract shall be in a size equal to at least 10-point bold type and shall appear directly above the buyer’s signature.

(e) The retail installment contract shall contain the names of the seller and the buyer, the place of business of the seller, the residence or other address of the buyer as specified by the buyer, and a description of the motor vehicle sold or to be sold.

(f)(1) The retail installment contract shall contain the following items:

(A) The cash price of the motor vehicle.

(B) The amount of the buyer’s down payment, if any, specifying the amounts paid in money and in goods traded in.

(D) The amount, if any, paid or to be paid by the seller pursuant to an agreement with the buyer to discharge a security interest, lien interest, or lease interest on the traded-in motor vehicle; the amount, if any, for insurance, including the cost of credit life insurance at a rate authorized by rate schedules then in effect and on file with the Commissioner of Financial Regulation; the cost, if any, of physical damage insurance specifying the type or types and the term of coverage; the cost, if any, for service contracts as defined in 8 V.S.A. § 4247; and the reasonable cost, if any, for a debt protection agreement as set forth in 8 V.S.A. § 10405.

(E) The amount of all official fees, and a separate identified charge shall be shown therefor.

(F) The principal balance, which is the sum of items (C), (D), and (E) of this subsection.

(G) The amount of the finance charge.

(H) The sum of items (F) and (G) of this subsection, which is the balance to be paid by the buyer to the seller; the number of installments; the amount of each installment and the due date or period thereof; and notice to the borrower as to the effect of early or late payments.

(I) The total time price, which is the sum of items (A), (D), (E), and (G) of this subsection.

(J) A disclosure form completed by the automobile dealership containing at least the allowance for the trade-in, amount owed on the trade-in or lease, cash price, amount financed on the motor vehicle retail installment contract, the amount financed on the motor vehicle retail installment contract as a percentage of the cash price of the vehicle, and signature blocks for the buyer will be provided to the buyer who finances a motor vehicle utilizing a motor vehicle retail installment sales contract at the dealership. The unexecuted disclosure form will be provided to the buyer prior to consummation of the transaction and will be signed by the buyer at the time the buyer signs the motor vehicle retail installment contract. The disclosure will be on a form prescribed by the Commissioner on or before July 1, 2006 and as thereafter amended by the Commissioner by rule.

(2) The items specified in subdivision (1) of this subsection need not be stated in the sequence or order set forth; additional items may be included but only to explain the calculations involved in determining the balance to be paid by the buyer as set forth in this subsection. No other charges shall be made by the seller.

(g) The amount, if any, stated and included in the retail installment contract for insurance to be purchased by the holder shall not exceed the applicable premiums chargeable in accordance with filings, if any, with the Department of Financial Regulation. If the insurance for which the stated amount is included insures the life, safety, or health of the buyer, or their interest in or their liability because of the motor vehicle, and is purchased by the holder, the holder shall, within 30 days after the execution of the retail installment contract, send or cause to be sent to the buyer a policy or policies of insurance, written by an insurance company authorized to do business in this State, or a certificate or certificates thereof. The policy or policies shall set forth all the terms, exceptions, limitations, restrictions, and conditions of the contract or contracts of insurance and the certificates shall set forth a summary thereof. The insurance may be purchased by the holder. However, the buyer may purchase the insurance from an agent or broker of his or her own selection and select an insurance company acceptable to the holder, which acceptance shall not be arbitrarily or unreasonably withheld, but in that case the inclusion of the insurance premium in the retail installment contract shall be optional with the seller. If the insurance is cancelled or the premium adjusted, any refund of the premium received by the holder shall be credited to the outstanding principal balance of the contract, except to the extent applied toward payment for similar insurance protecting the interest of the buyer and the holder or either of them.

(h)-(i) [Repealed.]

(j) A retail installment contract shall not be signed by any party thereto when it contains blank spaces of items that are pertinent to the transaction and that should be completed. However, if delivery of the motor vehicle is not made at the time of the execution of the contract, the identifying numbers or marks or similar information and the due date of the first installment may be inserted in the contract after its execution.

(k) Upon written request of the buyer, the holder of a retail installment contract shall give or forward to the buyer a written statement of the dates and amounts of installment payments and the total amount unpaid under the contract. A buyer shall be given a written receipt for any payment when made in cash. One statement or receipt shall be given the buyer without charge; if any additional statement or receipt is requested by the buyer, it shall be supplied by the holder at a charge not in excess of $1.00 for each additional statement or receipt so supplied.

(l) A provision in a retail installment contract relieving the seller from liability for any legal remedies that the buyer may have against the seller shall not be enforceable.

(m) The holder of any retail installment contract may collect a reasonable delinquency charge if provided for in the contract. In addition, where collection is referred for payment to an attorney who is not a salaried employee of the holder of the contract, the contract may provide for the payment of an attorney’s reasonable fee and for court costs and disbursements and also for actual and reasonable out-of-pocket expenses incurred after referral in connection with the delinquency, repossession, or foreclosure, including storage charges, reconditioning expenses, and collection expenses.

(Added 1961, No. 227, § 5, eff. Jan. 1, 1962; amended 1979, No. 173 (Adj. Sess.), § 19; 1985, No. 59, § 3; 1989, No. 122, §§ 4, 5, 6, eff. June 30, 1989; 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 1997, No. 109 (Adj. Sess.), § 4, eff. Sept. 1, 1998; 2005, No. 70, § 5; 2005, No. 143 (Adj. Sess.), § 1; 2021, No. 20, § 11.)

§ 2355a Repealed

[Repealed]

1969, No. 118, eff. April 22, 1969.

§ 2356 Repealed

[Repealed]

1979, No. 173 (Adj. Sess.), § 19, eff. April 30, 1980.

§ 2356a Finance charge limitation and method of calculation

The interest rates for motor vehicle financing shall be that authorized by subdivision 41a(b)(4) of this title, and the method of interest calculation shall be as specified in subsection 41a(d) of this title.

(Added 1979, No. 173 (Adj. Sess.), § 15, eff. April 30, 1980; amended 1989, No. 122, § 7, eff. June 30, 1989.)

§ 2357 Prepayment

Notwithstanding the provisions of any retail installment contract to the contrary, any buyer may prepay it in full at any time before maturity without penalty.

(Added 1961, No. 227, § 7, eff. Jan. 1, 1962; amended 1967, No. 58, § 3; 1989, No. 122, § 8, eff. June 30, 1989.)

§ 2358 Refinancing retail installment contracts

(a) The holder of a retail installment contract, upon request by the buyer, may agree to an amendment thereto to extend the scheduled due date of all or any part of any installment or installments or to renew, restate, or reschedule the unpaid balance of the contract.

(b) The amendment to the contract must be confirmed in writing signed by the buyer and the holder. The writing shall set forth the terms of the amendment and shall either be delivered or mailed to the buyer at the address as shown on the contract. The writing together with the original contract and any previous amendments thereto shall constitute the retail installment contract.

(Added 1961, No. 227, § 8, eff. Jan. 1, 1962; amended 1989, No. 122, § 9, eff. June 30, 1989.)

§ 2359 Cases not provided for; scope

This chapter shall not affect or apply to any loans or to the business of making loans under the laws of this State, nor shall any of the provisions of the loan or interest statutes of this State affect or apply to any retail installment transaction. Nothing in this chapter shall be construed to impair or in any way affect any rule of law applicable to or governing retail installment sales not otherwise subject hereto. This chapter shall apply exclusively to all retail installment transactions as defined in section 2351 of this title. This chapter shall not apply to commercial leases.

(Added 1961, No. 227, § 9, eff. Jan. 1, 1962; amended 1989, No. 122, § 10, eff. June 30, 1989; 1989, No. 284 (Adj. Sess.), § 2.)

§ 2360 Waiver

No act or agreement of the retail buyer before or at the time of the making of a retail installment contract shall constitute a valid waiver of any of the provisions of this chapter.

(Added 1961, No. 227, § 10, eff. Jan. 1, 1962.)

§ 2361 Penalties

(a) In case of failure of any person to comply with any of the provisions of this chapter, such person or any person who acquires a contract or installment account with knowledge of such noncompliance is barred from recovery of any finance charge or of any delinquency, collection, deferral, or refinance charge imposed in connection with such contract or installment account, and the buyer shall have the right to recover from such person an amount equal to any of such charges paid by the buyer with interest thereon from the time of payment and all expenses of collection including reasonable attorney’s fees, in a civil action on this statute.

(b) In any case in which a person willfully violates any provision of this chapter, except as provided in subsection (c) of this section, the buyer may recover from such person an amount equal to two times the total of the estimated finance charges and any delinquency, collection, extension, deferral, or refinance charges imposed, contracted for, or received, and the seller shall be barred from the recovery of any such charges. The buyer shall also recover reasonable attorney’s fees as determined by the court.

(c) A person shall not knowingly or willfully make any retail installment contract under this chapter that directly or indirectly calls for the payment of any finance charges in excess of the legal rate as set forth in this chapter. A contract violating this section shall be unenforceable, and a person shall have no right to collect any principal, finance, or other charges.

(d) Notwithstanding the provisions of this section, any failure to comply with any provision of the chapter may be corrected by the holder in accordance with the provisions of this section, provided that a willful violation may not be corrected, and a correction that will increase the amount owed by the owner or the amount of any payment shall not be effective unless the buyer concurs in writing to the correction. If a violation is corrected by the holder in accordance with the provisions of this section, neither the seller nor the holder shall be subject to any penalty under this section. The correction shall be made by delivering to the buyer a corrected copy of the contract within 60 days of the execution of the original contract by the buyer. Any amount improperly collected from the buyer shall be credited against the indebtedness evidenced by the contract.

(e) Any person who shall willfully and intentionally violate any provisions of this chapter shall be fined not more than $100.00 for the first offense. Upon conviction for violating this section in any transaction entered into or consummated after a first conviction hereunder, the offender shall be fined not more than $1,000.00 or imprisoned for not more than one year, or both.

(Added 1961, No. 227, § 11, eff. Jan. 1, 1962; amended 1973, No. 185 (Adj. Sess.), § 1; 1989, No. 122, § 11, eff. June 30, 1989.)

§ 2362 Prohibition on discrimination based on sex, sexual orientation, gender identity, marital status, race, color, religion, national origin, age, or disability

No seller shall discriminate against any buyer or prospective buyer who desires to establish a retail installment contract because of the sex, sexual orientation, gender identity, marital status, race, color, religion, national origin, age, or disability of the buyer.

(Added 1973, No. 130 (Adj. Sess.), § 3; amended 1989, No. 122, § 12, eff. June 30, 1989; 1991 No. 135 (Adj. Sess.), § 8; 2007, No. 41, § 11; 2013, No. 96 (Adj. Sess.), § 27.)

Chapter 60 Agricultural Finance Leases

§ 2381 Definitions

As used in this chapter:

(1) “Agricultural finance lease” or “lease” means a lease of property to a farmer under which:

(A) the lease transfers ownership of the leased property to the lessee by the end of the lease term;

(B) the lease contains an option for the lessee to purchase the leased property at the end of the lease term;

(D) when the lease is executed, the present value of the rental and other minimum lease payments equals or exceeds 90 percent of the fair market value of the leased property less any investment tax credit retained by the lessor.

(2) “Commissioner” means the Commissioner of Financial Regulation.

(3) “Fair market value” means the price the leased property would be sold for in a transaction between willing and informed parties in an arms-length transaction.

(4) “Farmer” means any person engaged in farming.

(5) “Farming” means those activities described in 10 V.S.A. § 6001(22).

(6) “Leased property” or “property” means personal property leased by a lessor to a farmer lessee for use in farming, including goods, livestock, equipment and machinery, bulk milk tanks, silos, manure storage systems, tools, fixtures that were personal property at the time the lease was entered into, and accessories. The term also includes the cost of installation, if any.

(7) “Lessee” means a person who acquires the right to possession and use of leased property under an agricultural finance lease.

(8) “Lessor” means a person who transfers the right to possession and use of leased property under an agricultural finance lease, and agents, successors, and assigns of the lessor. The term also includes a person who is the manufacturer, seller, supplier, or dealer of the leased property if the lessor is wholly owned as a subsidiary corporation by, or wholly owns as a subsidiary corporation, such a person, or if there is common ownership or management in any other form between the lessor and that person.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 136 (Adj. Sess.), § 1.)

§ 2382 Agricultural finance leases

(a) An agricultural finance lease, including any lease amendments, shall be in writing, dated, and signed by the lessee and the lessor. The lease shall be completed before being signed by the lessee. The lease need not be contained in a single document. A copy of the lease shall be provided to the lessee at the time of execution.

(b) The printed portion of an agricultural finance lease, and the accompanying disclosure sheet if not incorporated into the lease, other than instructions for completion, shall be in a size equal to at least eight-point type. The contract shall be designated in a size equal to at least 10-point bold type as an “agricultural finance lease ” and shall contain the following notice in a size equal to at least 10-point bold type.

“NOTICE TO THE LESSEE—DO NOT SIGN THIS LEASE IN BLANK. YOU ARE ENTITLED TO A COPY OF THE LEASE AT THE TIME YOU SIGN. KEEP IT TO PROTECT YOUR LEGAL RIGHTS.”

(c) The provisions of section 2454 of this title, requiring a lessor to disclose a lessee’s right to cancel a lease, shall apply to an agricultural finance lease that is a “home solicitation sale,” as that term is defined by section 2451a of this title.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012.)

§ 2383 Disclosure sheet

The agricultural finance lease shall contain, or be accompanied by, a disclosure sheet that contains the following information in easily readable form:

(1) The names and addresses of the lessor and lessee. If the seller of the leased property is an entity different than the lessor, the name and address of the seller shall also be included.

(2) A brief description of each item of the leased property.

(3) The purchase price of leased property purchased by the lessor contemporaneously with the execution of the agricultural finance lease, evidenced by a copy of the sales invoice or, for other leased property, identification of the leased property’s fair market value at the time of execution of the lease.

(4) The total amount of any advance payment, down payment, security deposit, together with the rate of interest, if any, or trade-in allowance.

(5) The number, amount, and due dates or periods of payments scheduled under the lease, and the total amount of the periodic payments.

(6) The total amount paid or payable by the lessee during the lease term for official fees, registration, certificate of title, license fees, and taxes. If these amounts are not known, a good faith estimate shall be included.

(7) The total amount of all other charges payable by the lessee to the lessor, individually itemized, that are not included in the periodic payments, except for costs of collection upon default.

(8) A brief identification of any insurance required by the lease, including:

(A) if provided or paid for by the lessor, the types and amounts of coverages and the cost to the lessee; or

(B) if not provided or paid for by the lessor, the types and amounts of coverages required of the lessee.

(9) A statement identifying any express warranties or guarantees available to the lessee made by the lessor or manufacturer with respect to the leased property.

(10) Identification of any person responsible for maintaining or servicing the leased property, a brief description of any maintenance responsibility, and a statement of reasonable standards for wear and use, if the lessor sets such standards.

(11) A description of the terms and conditions of any security interest held or to be retained by the lessor, including any mortgage connected with the lease, and a clear identification of the property to which the security interest applies.

(12) The amount or method of determining the amount of any penalty or other charge for delinquency, default, or late payments.

(13) A statement of the conditions under which the lessee or lessor may terminate the lease before the end of the lease term, and the amount, or method of determining the amount, of any penalty or other charge for early termination.

(14) Identification of the amount, and the method of calculating the amount, of any penalty or other charge for which the lessee is liable at the end of the lease term, if a liability exists.

(15) A statement of whether the lessee may purchase the leased property before or at the end of the lease term, and identification of the exact time when the option may be exercised. The statement shall also disclose the purchase price or declare that the price will be based on the property’s fair market value at the time the property may be purchased by the lessee. If the price will be based on fair market value, the historical experience, if any, of the lessor in calculating the purchase price of similar equipment under similar leases shall also be disclosed.

(16) If the lessee has an option to purchase the leased property before or at the end of the lease term based on the property’s fair market value, a statement that the lessee may obtain a professional appraisal of the fair market value by an independent third party agreed to by the lessee and lessor. The appraised price shall be final and binding upon the lessor and lessee. The cost of the appraisal shall be shared equally by the lessor and lessee. The lessee shall not be obliged to exercise the option to purchase the property even though an appraisal has been obtained.

(17) A declaration that comparison of the total amount of payments that would be due under an agricultural finance lease with the total amount of payment that would be due under a loan to purchase the property does not account for the relative tax advantages to the lessee of lease and loan transactions.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012.)

§ 2384 Warranties

(a) A lessee may enforce all express or implied warranties available to the lessor directly against the manufacturer, seller, supplier, or dealer of the leased property, during the term of the lease.

(b) A lessor shall impliedly warrant that the leased property is fit for a particular purpose if the lessor, when the lease is executed, has reason to know of any particular purpose for which the goods are required and that the lessee is relying on the lessor’s skill or judgment to select or furnish suitable goods.

(c) A lessor shall impliedly warrant that the leased property is merchantable, if the lessor is a merchant with respect to goods of that kind.

(d) A lessor shall impliedly warrant that no person holds a claim to or interest in the leased property arising from an act or omission of the lessor, for the lease term, that will interfere with the lessee’s enjoyment of the leasehold interest.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012.)

§ 2385 Unconscionability

(a) If a court finds an agricultural finance lease, or any clause of a lease, to have been unconscionable at the time it was made, the court may refuse to enforce the entire lease or enforce the remainder of the agricultural finance lease without the unconscionable clause, or it may limit the application of any unconscionable clause to avoid an unconscionable result.

(b) If a court finds that an agricultural finance lease or any clause of a lease has been induced by unconscionable conduct, or that unconscionable conduct has occurred in the collection of a claim arising from a lease contract, the court may grant appropriate relief.

(c) Before making a finding on unconscionability under subsection (a) or (b) of this section, the court, on its own motion or that of a party, shall afford the parties a reasonable opportunity to present evidence as to the setting, purpose, and effect of the lease contract or clause, or of the conduct.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012.)

§ 2386 Option to accelerate at will

Any term of an agricultural finance lease providing that a party or a successor in interest may accelerate payment or performance, or require collateral or additional collateral “at will” or “when he or she deems himself or herself insecure,” or in words of similar import, shall be construed to mean that the party may do so only if he or she in good faith believes that the prospect of payment or performance is impaired. The burden of establishing good faith shall be on the party who exercised the power.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012.)

§ 2387 Waiver

No act or agreement of the lessee shall be deemed a waiver of any of the provisions of this chapter, except for a waiver made in settlement of a claim asserted under this chapter.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012.)

§ 2388 Prohibition on discrimination based on sex, sexual orientation, gender identity, marital status, race, color, religion, national origin, age, or disability

No person shall discriminate against any lessee or prospective lessee who has entered into an agricultural finance lease, or who desires to enter into an agricultural finance lease, because of the sex, sexual orientation, gender identity, marital status, race, color, religion, national origin, age, or disability of the lessee.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 1991, No. 135 (Adj. Sess.), § 10; 2007, No. 41, § 13; 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012; 2013, No. 96 (Adj. Sess.), § 28.)

§ 2389 Limitation on power to choose applicable law and judicial forum

(a) If the parties to an agricultural finance lease choose the law of a jurisdiction other than that in which the goods are to be used, or that in which the lessee resides or has his or her principal place of business, when the lease agreement becomes enforceable or within 30 days thereafter, the choice is not enforceable.

(b) If the parties to an agricultural finance lease choose a judicial forum that would not otherwise have jurisdiction over the lessee, the choice is not enforceable.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012.)

§ 2390 Remedies and penalties

All remedies and penalties available to a consumer and the Attorney General under chapter 63 of this title shall apply to violations of this chapter.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 1991, No. 79, § 6; 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012.)

§ 2391 Construction

In the event of a conflict between this chapter and Title 9A, the Uniform Commercial Code, the provisions of this chapter shall control.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012.)

§ 2392 Rules

The Commissioner may adopt rules, including incorporation of the applicable provisions of 12 C.F.R. Part 213, deemed necessary to promote the purposes of this chapter.

(Added 1989, No. 284 (Adj. Sess.), § 1; amended 2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012.)

Chapter 61 Retail Installment Sales

§ 2401 Definitions

As used in this chapter:

(1) “Goods” means all tangible personal chattels when purchased primarily for personal, family, or household use and not for commercial, industrial, or agricultural use, but not including money, motor vehicles, things in action, or intangible personal property other than merchandise certificates or coupons as described in this subdivision. The term includes chattels that are furnished or used at the time of sale or subsequently in the modernization, rehabilitation, repair, alteration, improvement, or construction of real property as to become a part of the real property whether or not it is severable from it. The term also includes merchandise certificates or coupons, issued by a retailer seller, not redeemable in cash, and to be used in their face amount in lieu of cash.

(2) “Services” means:

(A) With respect to retail installment contracts, work, labor, and services furnished for personal, family, or household use, and not for commercial, industrial, or agricultural use, in connection with the delivery, installation, servicing, repair, or improvement of goods sold under such contract; and

(B) With respect to retail charge agreements, work, labor, and services of any kind rented or furnished by a person engaged in the business of retail seller that are for personal, family, or household use and not for commercial, industrial, or agricultural use. The term does not include services for which the cost is by law fixed or approved by, or filed subject to approval or disapproval with, the United States or any state or any agency of either, such as in the case of transportation services.

(3) “Motor vehicle” or “vehicle” means and is limited to any automobile, mobile home, motorcycle, truck, truck-tractor, trailer, semi-trailer, and bus designed and used primarily to transport persons or property on a public highway, excepting, however, any boat trailer and any vehicle propelled or drawn exclusively by muscular power or that is designed to run only on rails or tracks.

(4) “Retail buyer” or “buyer” means a person who buys or agrees to buy goods from a retail seller in a retail installment transaction, or who obtains services or agrees to have services furnished or rendered from a retail seller in a retail installment transaction.

(5) “Retail seller” or “seller” means a person regularly and principally engaged in a business of selling goods to retail buyers.

(6) “Retail installment transaction” or “transaction” means any transaction in which a retail buyer purchases goods or services for a price consisting of the cash price and other amounts as limited by this chapter and agrees under a retail installment contract or retail charge agreement to pay a part or all of the price in one or more deferred installments. The term shall include every transaction in which the promise or agreement to pay the deferred balance of the price is made by the retail buyer to the retail seller, notwithstanding the existence or occurrence of any one or more of the following events:

(A) that the retail seller has arranged or arranges to sell, transfer, or assign the retail buyer’s obligation;

(B) that the amount of the finance charge is determined by reference to charts or information furnished by a financing institution;

(C) that the forms of instruments used to evidence the retail installment and transaction are furnished by a financing institution; and

(D) that the credit standing of the retail buyer is or has been evaluated by a financing institution.

(7) “Retail installment contract” or “contract” means a contract entered into in this State and designated as a retail installment transaction, but not a retail charge agreement, or a document reflecting a sale under it, evidencing an agreement to pay the retail purchase price of goods or any part thereof in two or more installments over a period of time, and pursuant to which title to, or a lien upon, or a security interest in, the goods is retained or taken by the retail seller to secure the payment of a price that includes the charge as limited by section 2405 of this title. The term includes a chattel mortgage, a conditional sales contract, and a contract in the form of a bailment or lease if the bailee or lessee contracts to pay as compensation for use a sum substantially equivalent to or in excess of the value of the goods sold, and it is agreed that the bailee or lessee is bound to become, or, for no further or a merely nominal consideration, has the option of becoming, the owner of the goods upon full compliance with the provisions of the bailment or lease. The term shall also include any amendment of the retail installment contract in which the parties agree to renew, restate, or reschedule the unpaid balance thereof, or to extend the scheduled due date of all or any part of any installment or installments.

(8) “Retail charge agreement” means an agreement other than a retail installment contract that prescribed the terms of retail installment transactions that may be made thereafter from time to time under it, under which the buyer’s total unpaid balance under the agreement, whenever incurred, is payable in one or more deferred installments and under the terms of which the retail buyer pays a price that includes a charge as limited by section 2406 of this title, which charge is to be computed in relation to the buyer’s unpaid balance from time to time.

(9) “Cash price” means the minimum price for which the goods and services subject to the retail installment contract or the retail charge agreement, or for which other goods and services of like kind and quality, may be purchased for cash from the seller by the buyer, as stated in the retail installment contract or the retail charge agreement.

(10) “Recording fees” means the amount of the fees prescribed by law for filing, recording, or otherwise perfecting and, in addition, releasing or satisfying a retained title, lien, or other security interest created by a retail installment transaction.

(11) “Principal balance” means the cash price of the goods and services that are the subject matter of a retail installment contract plus the amount, if any, included therein, if a separate identified charge is made therefor and stated in the contract, for insurance and official fees, less the amount of the buyer’s down payment in money or goods, or both.

(12) “Holder” means the retail seller of the goods or services, or the assignee if the retail installment contract or the retail charge agreement or any indebtedness thereunder has been sold or otherwise transferred.

(13) “Finance charge” means that part of the time sales price as determined under subsection 2405(g) of this title by which the time sales price exceeds the aggregate of the cash price and the amount included in a retail installment contract, if a separate charge is made therefor, for insurance and official fees.

(14) “Times sales price” means the total of the cash price of the goods or services and the amounts, if any, included for insurance, official fees, and finance charges.

(15) “Official fees” means the filing or other fees required by law to be paid to a public officer to perfect the interest or lien on the goods retained or taken by a retail seller under a retail installment contract.

(16) “Sales finance company” means a person engaged in the business of purchasing or otherwise acquiring from one or more sellers retail installment contracts.

(17) “Commissioner” means the Commissioner of Financial Regulation of Vermont.

(18) “Person” means an individual, partnership, joint venture, corporation, banking organization, association, or any other group however organized.

(19) [Repealed.]

(20) “Commercial lease” means a transfer of the right to possession and use of personal property or fixtures for a term in return for consideration, including leases intended as security, and where the property is to be used by the lessee primarily for commercial, industrial or agricultural use and not for personal, family, or household use.

(Added 1963, No. 221, § 1, eff. Jan. 1, 1964; amended 1989, No. 122, § 13, eff. June 30, 1989; 1989, No. 225 (Adj. Sess.), § 25(b); 1993, No. 141 (Adj. Sess.), § 4, eff. May 6, 1994; 1995, No. 180 (Adj. Sess.), § 38(a); 2003, No. 104 (Adj. Sess.), § 4; 2021, No. 20, § 12.)

§§ 2402, 2403 Repealed

[Repealed]

1995, No. 162 (Adj. Sess.), § 39(c), eff. Jan. 1, 1997.

§ 2404 Investigations and complaints; powers of Commissioner

(a) The Commissioner, if he or she has reasonable cause to believe that any licensee or other person has violated any of the provisions of this chapter, may make such investigation as he or she shall deem necessary, and, to the extent necessary for this purpose, the Commissioner or his or her authorized representative may examine the licensee or any other person and shall have the power to compel the production of all relevant books, records, and documents.

(b) Any buyer having reason to believe that this chapter has been violated with respect to this retail installment contract may file with the Commissioner a written complaint setting forth the details of the alleged violation.

(c) The Commissioner may issue subpoenas to compel the attendance of witnesses and the production of books, records, documents, and other evidence before him or her in any matter over which he or she has jurisdiction, control, or supervision pertaining to this chapter. The Commissioner shall have the power to administer oaths and affirmations to any person whose testimony is required.

(Added 1963, No. 221, § 4, eff. Jan. 1, 1964.)

§ 2405 Retail installment contracts

(a) Each retail installment contract shall be in writing, dated, signed by both the buyer and the seller, and completed as to essential provisions before being signed by the buyer. A retail installment contract need not be contained in a single document.

(b) The printed portion of the retail installment contract, other than instructions for completion, shall be in a size equal to at least eight-point type. The contract shall be designated in a size equal to at least 10-point bold type as a “Retail Installment Contract” and shall contain the following notice in a size equal to at least 10-point bold type.

“NOTICE TO THE BUYER—DO NOT SIGN THIS CONTRACT IN BLANK. YOU ARE ENTITLED TO A COPY OF THE CONTRACT AT THE TIME YOU SIGN. KEEP IT TO PROTECT YOUR LEGAL RIGHTS.”

(c) A retail installment contract may be evidenced by an original document stated to be applicable to purchase of goods or services to be made by the retail buyer from time to time. In that case, the original document, together with the sales slip, account book, or other written statement relating to each purchase, shall set forth all of the information required by this section and shall constitute the retail installment contract for each purchase. On each succeeding purchase under the original document, the sales slip, account book, or other written statement may, at the option of the seller, constitute the memorandum required by subsection (h) of this section. The seller shall deliver to the buyer a copy of the contract as accepted by the seller.

(d) The seller shall deliver to the buyer at the time of the execution of the contract a copy of the contract as accepted by the seller, except that where the sale is less than $ 5.00, the seller may mail a copy of such contract to the buyer at his or her address as shown on the retail installment contract. Any acknowledgement by the buyer of delivery of a copy of the contract shall be in a size equal to at least 10-point bold type and shall appear directly above the buyer’s signature. In any transaction involving the modernization, rehabilitation, repair, alteration, improvement, or construction of real property, the seller shall not request or accept a certificate of completion signed by the buyer before the actual delivery of the goods and completion of the work to be performed under the contract.

(e) Retail installment contracts negotiated and entered into by mail without personal solicitation by salespersons or other representatives of the seller and based upon a catalogue of the seller or other printed solicitation of the business, if the catalogue or other printed solicitation clearly sets forth the cash price and other terms of sales to be made through the medium, may be made as provided in this section. All provisions of this chapter applicable to retail installment contracts shall apply to those sales, except that the retail installment contract when completed by the buyer need not contain the items required in subsection (g) of this section. When the contract is received from the retail buyer, the seller shall forthwith prepare a written memorandum containing all the information required by subsection (g) of this section to be included in a retail installment contract. In lieu of delivering a copy of the contract to the buyer as provided in subsection (d) of this section, the seller shall deliver to the buyer a copy of such memorandum prior to the due date of the first installment under the contract.

(f) The retail installment contract shall contain the names of the seller and the buyer, the place of business of the seller, the residence or other address of the buyer as specified by the buyer, and a description of the goods sold or to be sold, which shall be sufficient for identification, and of the services furnished or to be furnished.

(g)(1) The retail installment contract shall contain the following items:

(A) the cash price of the goods or services;

(B) the amount of the buyer’s down payment, if any, specifying the amount paid in money and in goods traded in;

(D) the amount, if any, included for insurance, if a separate identified charge is made therefor, specifying the coverage and cost of each type of insurance at rates authorized by rate schedules then in effect and on file with the Commissioner of Financial Regulation; the cost, if any, for service contracts as defined in 8 V.S.A. § 4247; and the reasonable cost, if any, for a debt protection agreement as set forth in 8 V.S.A. § 10405;

(E) the amount of all official fees and a separate identified charge shall be shown therefor;

(F) the principal balance, which is the sum of subdivisions (C) and (D) and (E) of this subsection;

(G) the amount of the estimated finance charge as limited by subsection (k) of this section;

(H) the sum of subdivisions (F) and (G) of this subsection (g), which is the balance to be paid by the buyer to the seller; the number of installments thereof, the amount of each installment, and the due date or period thereof; and notice to the borrower as to the effect of early or late payments; and

(I) the total time price, which is the sum of subdivisions (A), (D), (E), and (G) of this subdivision (1).

(2) The items specified in subdivision (1) of this subsection need not be stated in the sequence or order set forth; additional items may be included, but only to explain the calculations involved in determining the balance to be paid by the buyer as set forth. No other charges shall be made by the seller.

(h)(1) Whenever a retail installment contract by its terms permits inclusion of additional goods purchased after the original agreement, and such goods are so purchased and the amount due on the new purchase is combined with an unpaid balance on any prior purchase so as to permit the retail seller to retain title to or reserve a lien upon all goods under the combined agreement, the retail seller shall, at the time of the additional purchase, deliver to the retail buyer and attach to the original agreement:

(A) a statement containing all the information with respect to the additional purchase required to be included in a retail installment contract; and

(B) a statement showing the amount due on the agreement immediately previous to the new purchase, the amount due after the purchase, the payments agreed to be made thereafter, and the number of additional months required to complete the payments.

(2) Whenever a payment is made on such a continuing agreement after additional purchases have been added, the payment shall be considered as allocated among each of the separate purchases included, in the same proportions that the original cash price of each bears to the total cash price of all goods to which the retail seller has retained title, and the retail seller before repossessing or attempting to repossess any goods under any such agreement shall actually allocate in such manner all such payments made to him or her by the retail buyer. When the amount owing on any such purchase has been fully paid, the goods so paid for shall become the absolute property of the retail buyer and shall not be subject to possession for any subsequent default on the agreement. The retail buyer under any such agreement may at any time prepay the amount due on any of the separate purchases and in case of repossession may redeem any of such separate purchases by payment of the amount due on such purchase alone.

(i)(1) The amount, if any, stated and included in the retail installment contract for insurance to be purchased by the holder shall not exceed the applicable premiums chargeable in accordance with filings, if any, with the Department of Financial Regulation. If the insurance for which the stated amount is included insures the life, safety, or health of the buyer, or his or her interest in or his or her liability because of the goods or services and is purchased by the holder, the holder shall, within 30 days after execution of the retail installment contract, send or cause to be sent to the buyer a policy or policies of insurance, written by an insurance company authorized to do business in this State, or a certificate or certificates thereof. The policy or policies shall set forth all the terms, exceptions, limitations, restrictions, and conditions of the contract or contracts of insurance and the certificates shall set forth a summary thereof. The insurance may be purchased by the holder. The buyer shall have the privilege of purchasing the insurance from an agent or broker of his or her own selection and of selecting an insurance company acceptable to the holder, which acceptance shall not be arbitrarily or unreasonably withheld, but in that case the inclusion of the insurance premium in the retail installment contract shall be optional with the seller.

(2) If the insurance is cancelled, or the premium adjusted, any refund of the premium received by the holder shall be credited to the outstanding principal balance of the contract, except to the extent applied towards payment for similar insurance protecting the interest of the buyer and the holder or either of them.

(j) A retail installment contract shall not be signed by any party thereto when it contains blank spaces of items that are pertinent to the transaction and should be completed. However, if delivery of the goods is not made at the time of the execution of the contract, the identifying numbers or marks of the goods or similar information and the due date of the first installment may be inserted in the contract after its execution.

(k) The interest rates for retail installment sales shall be that authorized by subdivision 41a(b)(2) of this title, and the method of interest calculation shall be as specified in subsection 41a(d) of this title.

(l) [Repealed.]

(m) The holder of any retail installment contract may collect a reasonable delinquency charge if provided for in the contract. In addition, where collection is referred for payment to an attorney who is not a salaried employee of the holder of the contract, the contract may provide for the payment of reasonable attorney’s fees and for court costs and disbursements and also for actual and reasonable out-of-pocket expenses incurred after referral in connection with the delinquency, repossession, or foreclosure, including storage charges, reconditioning expenses, and collection expenses.

(n) Upon written request of the buyer, the holder of a retail installment contract shall give or forward to the buyer a written statement of the dates and amounts of installment payments and the total amount unpaid under the contract. The buyer shall be given a written receipt for any payment when made in cash. One statement or receipt shall be given the buyer without charge, and if any additional statement or receipt is requested by the buyer, it shall be supplied by the holder at a charge not in excess of $1.00 for each additional statement or receipt so supplied.

(o) A provision in a retail installment contract relieving the seller from liability for any legal remedies that the buyer may have against the seller shall not be enforceable.

(p)(1) Notwithstanding the provisions of any retail installment contract to the contrary, any buyer may prepay the contract in full at any time before maturity without penalty.

(2) [Repealed.]

(q)(1) The holder of a retail installment contract upon request by the buyer may agree to an amendment thereto to extend the scheduled due date of all or any part of any installment or installments or to renew, restate, or reschedule the unpaid balance of the contract.

(2) The amendment to the contract must be confirmed in a writing signed by the buyer and the holder. The writing shall set forth the terms of the amendment and shall either be delivered to the buyer or mailed to him or her at the address as shown on the contract. That writing together with the original contract and any previous amendments thereto shall constitute the retail installment contract.

(Added 1963, No. 221, § 5, eff. Jan. 1, 1964; amended 1967, No. 58, § 2; 1979, No. 173 (Adj. Sess.), §§ 16, 17, eff. April 30, 1980; 1985, No. 59, § 2; 1989, No. 122, §§ 14-21, eff. June 30, 1989; 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38(a); 1997, No. 109 (Adj. Sess.), § 5, eff. Sept. 1, 1998; 2005, No. 70, § 6; 2013, No. 29, § 9, eff. May 13, 2013; 2021, No. 20, §§ 13, 14.)

§ 2406 Retail charge agreements

(a) Each retail charge agreement shall be in writing and signed by the buyer. A copy of any agreement executed on or after January 1, 1964 shall be delivered or mailed to the buyer by the seller before the date on which the first payment is due under the agreement. Any acknowledgment by the buyer of delivery of a copy of the agreement contained in the body thereof shall be in a size equal to at least 10-point boldface type and shall appear directly above the buyer’s signature. No agreement executed on or after January 1, 1964 shall be signed by the buyer when it contains blank spaces to be filled in after it has been signed. The buyer’s acknowledgment, conforming to the requirements of this subsection, of delivery of a copy of an agreement shall be presumptive proof in any action or proceeding of the delivery and that the agreement, when signed, did not contain any blank spaces. All retail charge agreements executed on or after January 1, 1964 shall state the maximum amount or rate of any charge referred to in subsection (c) of this section to be charged and paid under the agreement. Any such agreement shall contain the following notice printed or typed in a size equal to at least 10-point bold type, which shall appear directly above the space provided for the buyer’s signature:

“NOTICE TO THE BUYER—DO NOT SIGN THIS AGREEMENT IN BLANK. YOU ARE ENTITLED TO A COPY OF THE AGREEMENT AT THE TIME YOU SIGN. KEEP IT TO PROTECT YOUR LEGAL RIGHTS.”

(b)(1) The seller shall promptly supply the buyer under the retail charge agreement with a statement as of the end of each monthly period, which need not be a calendar month, or other regular period agreed upon in writing by the seller and buyer, in which there is any unpaid balance under the agreement, which statement shall recite the following:

(A) the unpaid balance under the retail charge agreement at the beginning and at the end of the period;

(B) unless otherwise furnished by the seller to the buyer by sales slip, memorandum, or otherwise, a description of the goods or services purchased during the period, the cash price, and the date of each purchase;

(D) the amount, if any, of any charge for the period made under subsection (c) of this section; and

(E) that the buyer may at any time pay the total balance or any part of the total balance.

(2) The items specified in subdivision (1) of this subsection need not be stated in the sequence or order set forth in subdivision (1) of this subsection; additional items may be included, but only to explain the computations made in determining the amount to be paid by the buyer.

(c) A retail charge agreement may provide for, and the seller or holder may then, notwithstanding the provisions of any other law, charge, collect, and receive, in addition to the cash price, a charge for the privilege of making deferred payments under the agreement, which charge shall not exceed the rates authorized by subdivision 41a(b)(9) of this title. If the amount of the finance charge otherwise permitted shall be less than 50 cents for any month or longer regular period, 50 cents may nevertheless be charged, received, and collected. In addition, a retail charge agreement may provide for the payment of reasonable attorney’s fees where it is referred for collection to an attorney who is not a salaried employee of the holder of the retail charge agreement or any indebtedness under the agreement and of court costs and disbursements and also of actual and reasonable out-of-pocket expenses incurred in connection with the collection.

(Added 1963, No. 221, § 6, eff. Jan. 1, 1964; amended 1979, No. 173 (Adj. Sess.), § 18, eff. April 30, 1980; 1983, No. 214 (Adj. Sess.), § 3; 2021, No. 20, § 15.)

§ 2406a Repealed

[Repealed]

1969, No. 118, eff. April 22, 1969.

§ 2407 Scope

(a) This chapter shall not affect or apply to any loans or to the business of making loans under or in accordance with the laws of this State, nor shall any of the provisions of the loan or interest statutes of this State affect or apply to any retail installment transaction regulated hereunder. Nothing in this chapter shall be construed to impair or in any way affect any rule of law applicable to or governing retail installment sales not otherwise subject hereto. This chapter shall apply exclusively to all retail installment transactions as defined in section 2401 of this title.

(b) This chapter shall not apply to commercial leases.

(Added 1963, No. 221, § 7, eff. Jan. 1, 1964; amended 1989, No. 122, § 22, eff. June 30, 1989; 1989, No. 284 (Adj. Sess.), § 3.)

§ 2408 Waiver

No act or agreement of the retail buyer before or at the time of the making of the retail installment contract, retail charge agreement, or purchase thereunder shall constitute a valid waiver of any of the provisions of this chapter.

(Added 1963, No. 221, § 8, eff. Jan. 1, 1964.)

§ 2409 Penalties

(a) In case of failure of any person to comply with any of the provisions of this chapter, such person or any person who acquires a contract or installment account with knowledge of such noncompliance is barred from recovery of any finance charge or of any delinquency, collection, deferral, or refinance charge imposed in connection with such contract or installment account, and the buyer shall have the right to recover from such person an amount equal to any of such charges paid by the buyer with interest thereon from the time of payment and all expenses of collection, including reasonable attorney’s fees, in a civil action on this statute.

(b) In any case in which a person willfully violates any provision of this chapter, except as provided in subsection (c) of this section, the buyer may recover from such person an amount equal to two times the total of the finance charges and any delinquency, collection, extension, deferral, or refinance charges imposed, contracted for, or received, and the seller shall be barred from the recovery of any such charges. The buyer shall also recover reasonable attorney’s fees as determined by the court.

(Added 1963, No. 221, § 9, eff. Jan. 1, 1964; amended 1973, No. 185 (Adj. Sess.), § 2.)

§ 2410 Prohibition on discrimination based on sex, sexual orientation, gender identity, marital status, race, color, religion, national origin, age, or disability

No seller shall discriminate against any buyer or prospective buyer who desires to establish a retail installment contract or retail charge agreement because of the sex, sexual orientation, gender identity, marital status, race, color, religion, national origin, age, or disability of the buyer.

(Added 1973, No. 130 (Adj. Sess.), § 2; amended 1989, No. 122, § 23, eff. June 30, 1989; 1991, No. 135 (Adj. Sess.), § 9; 2007, No. 41, § 12; 2013, No. 96 (Adj. Sess.), § 29.)

Chapter 62 Protection of Personal Information

Subchapter 1 General Provisions

§ 2430 Definitions

As used in this chapter:

(1)(A) “Brokered personal information” means one or more of the following computerized data elements about a consumer, if categorized or organized for dissemination to third parties:

(i) name;

(ii) address;

(iii) date of birth;

(iv) place of birth;

(v) mother’s maiden name;

(vi) unique biometric data generated from measurements or technical analysis of human body characteristics used by the owner or licensee of the data to identify or authenticate the consumer, such as a fingerprint, retina or iris image, or other unique physical representation or digital representation of biometric data;

(vii) name or address of a member of the consumer’s immediate family or household;

(viii) Social Security number or other government-issued identification number; or

(ix) other information that, alone or in combination with the other information sold or licensed, would allow a reasonable person to identify the consumer with reasonable certainty.

(B) “Brokered personal information” does not include publicly available information to the extent that it is related to a consumer’s business or profession.

(2) “Business” means a commercial entity, including a sole proprietorship, partnership, corporation, association, limited liability company, or other group, however organized and whether or not organized to operate at a profit, including a financial institution organized, chartered, or holding a license or authorization certificate under the laws of this State, any other state, the United States, or any other country, or the parent, affiliate, or subsidiary of a financial institution, but does not include the State, a State agency, any political subdivision of the State, or a vendor acting solely on behalf of, and at the direction of, the State.

(3) “Consumer” means an individual residing in this State.

(4)(A) “Data broker” means a business, or unit or units of a business, separately or together, that knowingly collects and sells or licenses to third parties the brokered personal information of a consumer with whom the business does not have a direct relationship.

(B) Examples of a direct relationship with a business include if the consumer is a past or present:

(i) customer, client, subscriber, user, or registered user of the business’s goods or services;

(ii) employee, contractor, or agent of the business;

(iii) investor in the business; or

(iv) donor to the business.

(C) The following activities conducted by a business, and the collection and sale or licensing of brokered personal information incidental to conducting these activities, do not qualify the business as a data broker:

(i) developing or maintaining third-party e-commerce or application platforms;

(ii) providing 411 directory assistance or directory information services, including name, address, and telephone number, on behalf of or as a function of a telecommunications carrier;

(iii) providing publicly available information related to a consumer’s business or profession; or

(iv) providing publicly available information via real-time or near-real-time alert services for health or safety purposes.

(D) The phrase “sells or licenses” does not include:

(i) a one-time or occasional sale of assets of a business as part of a transfer of control of those assets that is not part of the ordinary conduct of the business; or

(ii) a sale or license of data that is merely incidental to the business.

(5)(A) “Data broker security breach” means an unauthorized acquisition or a reasonable belief of an unauthorized acquisition of more than one element of brokered personal information maintained by a data broker when the brokered personal information is not encrypted, redacted, or protected by another method that renders the information unreadable or unusable by an unauthorized person.

(B) “Data broker security breach” does not include good faith but unauthorized acquisition of brokered personal information by an employee or agent of the data broker for a legitimate purpose of the data broker, provided that the brokered personal information is not used for a purpose unrelated to the data broker’s business or subject to further unauthorized disclosure.

(C) In determining whether brokered personal information has been acquired or is reasonably believed to have been acquired by a person without valid authorization, a data broker may consider the following factors, among others:

(i) indications that the brokered personal information is in the physical possession and control of a person without valid authorization, such as a lost or stolen computer or other device containing brokered personal information;

(ii) indications that the brokered personal information has been downloaded or copied;

(iii) indications that the brokered personal information was used by an unauthorized person, such as fraudulent accounts opened or instances of identity theft reported; or

(iv) that the brokered personal information has been made public.

(6) “Data collector” means a person who, for any purpose, whether by automated collection or otherwise, handles, collects, disseminates, or otherwise deals with personally identifiable information, and includes the State, State agencies, political subdivisions of the State, public and private universities, privately and publicly held corporations, limited liability companies, financial institutions, and retail operators.

(7) “Encryption” means use of an algorithmic process to transform data into a form in which the data is rendered unreadable or unusable without use of a confidential process or key.

(8) “License” means a grant of access to, or distribution of, data by one person to another in exchange for consideration. A use of data for the sole benefit of the data provider, where the data provider maintains control over the use of the data, is not a license.

(9) “Login credentials” means a consumer’s user name or e-mail address, in combination with a password or an answer to a security question, that together permit access to an online account.

(10)(A) “Personally identifiable information” means a consumer’s first name or first initial and last name in combination with one or more of the following digital data elements, when the data elements are not encrypted, redacted, or protected by another method that renders them unreadable or unusable by unauthorized persons:

(i) a Social Security number;

(ii) a driver license or nondriver State identification card number, individual taxpayer identification number, passport number, military identification card number, or other identification number that originates from a government identification document that is commonly used to verify identity for a commercial transaction;

(iii) a financial account number or credit or debit card number, if the number could be used without additional identifying information, access codes, or passwords;

(iv) a password, personal identification number, or other access code for a financial account;

(v) unique biometric data generated from measurements or technical analysis of human body characteristics used by the owner or licensee of the data to identify or authenticate the consumer, such as a fingerprint, retina or iris image, or other unique physical representation or digital representation of biometric data;

(vi) genetic information; and

(vii)(I) health records or records of a wellness program or similar program of health promotion or disease prevention;

(II) a health care professional’s medical diagnosis or treatment of the consumer; or

(III) a health insurance policy number.

(B) “Personally identifiable information” does not mean publicly available information that is lawfully made available to the general public from federal, State, or local government records.

(11) “Record” means any material on which written, drawn, spoken, visual, or electromagnetic information is recorded or preserved, regardless of physical form or characteristics.

(12) “Redaction” means the rendering of data so that the data are unreadable or are truncated so that no more than the last four digits of the identification number are accessible as part of the data.

(13)(A) “Security breach” means unauthorized acquisition of electronic data, or a reasonable belief of an unauthorized acquisition of electronic data, that compromises the security, confidentiality, or integrity of a consumer’s personally identifiable information or login credentials maintained by a data collector.

(B) “Security breach” does not include good faith but unauthorized acquisition of personally identifiable information or login credentials by an employee or agent of the data collector for a legitimate purpose of the data collector, provided that the personally identifiable information or login credentials are not used for a purpose unrelated to the data collector’s business or subject to further unauthorized disclosure.

(C) In determining whether personally identifiable information or login credentials have been acquired or is reasonably believed to have been acquired by a person without valid authorization, a data collector may consider the following factors, among others:

(i) indications that the information is in the physical possession and control of a person without valid authorization, such as a lost or stolen computer or other device containing information;

(ii) indications that the information has been downloaded or copied;

(iii) indications that the information was used by an unauthorized person, such as fraudulent accounts opened or instances of identity theft reported; or

(iv) that the information has been made public.

(Added 2005, No. 162 (Adj. Sess.), § 1, eff. Jan. 1, 2007; amended 2011, No. 109 (Adj. Sess.), § 4, eff. May 8, 2012; 2017, No. 171 (Adj. Sess.), § 2, eff. Jan. 1, 2019; 2019, No. 89 (Adj. Sess.), § 2.)

§ 2431 Acquisition of brokered personal information; prohibitions

(a) Prohibited acquisition and use.

(1) A person shall not acquire brokered personal information through fraudulent means.

(2) A person shall not acquire or use brokered personal information for the purpose of:

(A) stalking or harassing another person;

(B) committing a fraud, including identity theft, financial fraud, or e-mail fraud; or

(b) Enforcement.

(1) A person who violates a provision of this section commits an unfair and deceptive act in commerce in violation of section 2453 of this title.

(2) The Attorney General has the same authority to adopt rules to implement the provisions of this section and to conduct civil investigations, enter into assurances of discontinuance, bring civil actions, and take other enforcement actions as provided under chapter 63, subchapter 1 of this title.

(Added 2017, No. 171 (Adj. Sess.), § 2, eff. Jan. 1, 2019.)

Subchapter 2 Security Breach Notice Act

§ 2435 Notice of security breaches

(a) This section shall be known as the Security Breach Notice Act.

(b) Notice of breach.

(1) Except as otherwise provided in subsection (d) of this section, any data collector that owns or licenses computerized personally identifiable information or login credentials shall notify the consumer that there has been a security breach following discovery or notification to the data collector of the breach. Notice of the security breach shall be made in the most expedient time possible and without unreasonable delay, but not later than 45 days after the discovery or notification, consistent with the legitimate needs of the law enforcement agency, as provided in subdivisions (3) and (4) of this subsection, or with any measures necessary to determine the scope of the security breach and restore the reasonable integrity, security, and confidentiality of the data system.

(2) Any data collector that maintains or possesses computerized data containing personally identifiable information or login credentials that the data collector does not own or license or any data collector that acts or conducts business in Vermont that maintains or possesses records or data containing personally identifiable information or login credentials that the data collector does not own or license shall notify the owner or licensee of the information of any security breach immediately following discovery of the breach, consistent with the legitimate needs of law enforcement as provided in subdivisions (3) and (4) of this subsection.

(3) A data collector or other entity subject to this subchapter shall provide notice of a breach to the Attorney General or to the Department of Financial Regulation, as applicable, as follows:

(A) A data collector or other entity regulated by the Department of Financial Regulation under Title 8 or this title shall provide notice of a breach to the Department. All other data collectors or other entities subject to this subchapter shall provide notice of a breach to the Attorney General.

(B)(i) The data collector shall notify the Attorney General or the Department, as applicable, of the date of the security breach and the date of discovery of the breach and shall provide a preliminary description of the breach within 14 business days, consistent with the legitimate needs of the law enforcement agency as provided in this subdivision (3) and subdivision (4) of this subsection (b), of the data collector’s discovery of the security breach or when the data collector provides notice to consumers pursuant to this section, whichever is sooner.

(ii) Notwithstanding subdivision (B)(i) of this subdivision (b)(3), a data collector who, prior to the date of the breach, on a form and in a manner prescribed by the Attorney General, had sworn in writing to the Attorney General that it maintains written policies and procedures to maintain the security of personally identifiable information or login credentials and respond to a breach in a manner consistent with Vermont law shall notify the Attorney General of the date of the security breach and the date of discovery of the breach and shall provide a description of the breach prior to providing notice of the breach to consumers pursuant to subdivision (1) of this subsection (b).

(iii) If the date of the breach is unknown at the time notice is sent to the Attorney General or to the Department, the data collector shall send the Attorney General or the Department the date of the breach as soon as it is known.

(iv) Unless otherwise ordered by a court of this State for good cause shown, a notice provided under this subdivision (3)(B) shall not be disclosed to any person other than the Department, the authorized agent or representative of the Attorney General, a State’s Attorney, or another law enforcement officer engaged in legitimate law enforcement activities without the consent of the data collector.

(C)(i) When the data collector provides notice of the breach pursuant to subdivision (1) of this subsection (b), the data collector shall notify the Attorney General or the Department, as applicable, of the number of Vermont consumers affected, if known to the data collector, and shall provide a copy of the notice provided to consumers under subdivision (1) of this subsection (b).

(ii) The data collector may send to the Attorney General or the Department, as applicable, a second copy of the consumer notice, from which is redacted the type of personally identifiable information or login credentials that was subject to the breach, and which the Attorney General or the Department shall use for any public disclosure of the breach.

(D) If a security breach is limited to an unauthorized acquisition of login credentials, a data collector is only required to provide notice of the security breach to the Attorney General or Department of Financial Regulation, as applicable, if the login credentials were acquired directly from the data collector or its agent.

(4)(A) The notice to a consumer required by this subsection shall be delayed upon request of a law enforcement agency. A law enforcement agency may request the delay if it believes that notification may impede a law enforcement investigation, or a national or Homeland Security investigation, or jeopardize public safety or national or Homeland Security interests. In the event law enforcement makes the request for a delay in a manner other than in writing, the data collector shall document such request contemporaneously in writing, including the name of the law enforcement officer making the request and the officer’s law enforcement agency engaged in the investigation. A law enforcement agency shall promptly notify the data collector in writing when the law enforcement agency no longer believes that notification may impede a law enforcement investigation, or a national or Homeland Security investigation, or jeopardize public safety or national or Homeland Security interests. The data collector shall provide notice required by this section without unreasonable delay upon receipt of a written communication, which includes facsimile or electronic communication, from the law enforcement agency withdrawing its request for delay.

(B) A Vermont law enforcement agency with a reasonable belief that a security breach has or may have occurred at a specific business shall notify the business in writing of its belief. The agency shall also notify the business that additional information on the security breach may need to be furnished to the Office of the Attorney General or the Department of Financial Regulation and shall include the website and telephone number for the Office and the Department in the notice required by this subdivision (4)(B). Nothing in this subdivision (4)(B) shall alter the responsibilities of a data collector under this section or provide a cause of action against a law enforcement agency that fails, without bad faith, to provide the notice required by this subdivision (4)(B).

(5) The notice to a consumer required in subdivision (1) of this subsection shall be clear and conspicuous. A notice to a consumer of a security breach involving personally identifiable information shall include a description of each of the following, if known to the data collector:

(A) the incident in general terms;

(B) the type of personally identifiable information that was subject to the security breach;

(C) the general acts of the data collector to protect the personally identifiable information from further security breach;

(D) a telephone number, toll-free if available, that the consumer may call for further information and assistance;

(E) advice that directs the consumer to remain vigilant by reviewing account statements and monitoring free credit reports; and

(F) the approximate date of the security breach.

(6) A data collector may provide notice of a security breach involving personally identifiable information to a consumer by one or more of the following methods:

(A) Direct notice, which may be by one of the following methods:

(i) written notice mailed to the consumer’s residence;

(ii) electronic notice, for those consumers for whom the data collector has a valid e-mail address, if:

(I) the data collector’s primary method of communication with the consumer is by electronic means, the electronic notice does not request or contain a hypertext link to a request that the consumer provide personal information, and the electronic notice conspicuously warns consumers not to provide personal information in response to electronic communications regarding security breaches; or

(II) the notice is consistent with the provisions regarding electronic records and signatures for notices in 15 U.S.C. § 7001; or

(iii) telephonic notice, provided that telephonic contact is made directly with each affected consumer and not through a prerecorded message.

(B)(i) Substitute notice, if:

(I) the data collector demonstrates that the lowest cost of providing notice to affected consumers pursuant to subdivision (6)(A) of this subsection among written, e-mail, or telephonic notice would exceed $10,000.00; or

(II) the data collector does not have sufficient contact information.

(ii) A data collector shall provide substitute notice by:

(I) conspicuously posting the notice on the data collector’s website if the data collector maintains one; and

(II) notifying major statewide and regional media.

(c) In the event a data collector provides notice to more than 1,000 consumers at one time pursuant to this section, the data collector shall notify, without unreasonable delay, all consumer reporting agencies that compile and maintain files on consumers on a nationwide basis, as defined in 15 U.S.C. § 1681a(p), of the timing, distribution, and content of the notice. This subsection shall not apply to a person who is licensed or registered under Title 8 by the Department of Financial Regulation.

(d)(1) Notice of a security breach pursuant to subsection (b) of this section is not required if the data collector establishes that misuse of personally identifiable information or login credentials is not reasonably possible and the data collector provides notice of the determination that the misuse of the personally identifiable information or login credentials is not reasonably possible pursuant to the requirements of this subsection. If the data collector establishes that misuse of the personally identifiable information or login credentials is not reasonably possible, the data collector shall provide notice of its determination that misuse of the personally identifiable information or login credentials is not reasonably possible and a detailed explanation for said determination to the Vermont Attorney General or to the Department of Financial Regulation in the event that the data collector is a person or entity licensed or registered with the Department under Title 8 or this title. The data collector may designate its notice and detailed explanation to the Vermont Attorney General or the Department of Financial Regulation as “trade secret” if the notice and detailed explanation meet the definition of trade secret contained in 1 V.S.A. § 317(c)(9).

(2) If a data collector established that misuse of personally identifiable information or login credentials was not reasonably possible under subdivision (1) of this subsection, and subsequently obtains facts indicating that misuse of the personally identifiable information or login credentials has occurred or is occurring, the data collector shall provide notice of the security breach pursuant to subsection (b) of this section.

(3) If a security breach is limited to an unauthorized acquisition of login credentials for an online account other than an e-mail account the data collector shall provide notice of the security breach to the consumer electronically or through one or more of the methods specified in subdivision (b)(6) of this section and shall advise the consumer to take steps necessary to protect the online account, including to change his or her login credentials for the account and for any other account for which the consumer uses the same login credentials.

(4) If a security breach is limited to an unauthorized acquisition of login credentials for an email account:

(A) the data collector shall not provide notice of the security breach through the email account; and

(B) the data collector shall provide notice of the security breach through one or more of the methods specified in subdivision (b)(6) of this section or by clear and conspicuous notice delivered to the consumer online when the consumer is connected to the online account from an Internet protocol address or online location from which the data collector knows the consumer customarily accesses the account.

(e) A data collector that is subject to the privacy, security, and breach notification rules adopted in 45 C.F.R. Part 164 pursuant to the federal Health Insurance Portability and Accountability Act, P.L. 104-191 (1996) is deemed to be in compliance with this subchapter if:

(1) the data collector experiences a security breach that is limited to personally identifiable information specified in 2430(10)(A)(vii); and

(2) the data collector provides notice to affected consumers pursuant to the requirements of the breach notification rule in 45 C.F.R. Part 164, Subpart D.

(f) Any waiver of the provisions of this subchapter is contrary to public policy and is void and unenforceable.

(g) Except as provided in subdivision (3) of this subsection, a financial institution that is subject to the following guidances, and any revisions, additions, or substitutions relating to an interagency guidance, shall be exempt from this section:

(1) The Federal Interagency Guidance Response Programs for Unauthorized Access to Consumer Information and Customer Notice, issued on March 7, 2005, by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.

(2) Final Guidance on Response Programs for Unauthorized Access to Member Information and Member Notice, issued on April 14, 2005, by the National Credit Union Administration.

(3) A financial institution regulated by the Department of Financial Regulation that is subject to subdivision (1) or (2) of this subsection shall notify the Department as soon as possible after it becomes aware of an incident involving unauthorized access to or use of personally identifiable information.

(h) Enforcement.

(1) With respect to all data collectors and other entities subject to this subchapter, other than a person or entity licensed or registered with the Department of Financial Regulation under Title 8 or this title, the Attorney General and State’s Attorney shall have sole and full authority to investigate potential violations of this subchapter and to enforce, prosecute, obtain, and impose remedies for a violation of this subchapter or any rules or regulations made pursuant to this chapter as the Attorney General and State’s Attorney have under chapter 63 of this title. The Attorney General may refer the matter to the State’s Attorney in an appropriate case. The Superior Courts shall have jurisdiction over any enforcement matter brought by the Attorney General or a State’s Attorney under this subsection.

(2) With respect to a data collector that is a person or entity licensed or registered with the Department of Financial Regulation under Title 8 or this title, the Department of Financial Regulation shall have the full authority to investigate potential violations of this subchapter and to prosecute, obtain, and impose remedies for a violation of this subchapter or any rules or regulations adopted pursuant to this subchapter, as the Department has under Title 8 or this title or any other applicable law or regulation.

(i) [Repealed.]

(Added 2005, No. 162 (Adj. Sess.), § 1, eff. Jan. 1, 2007; amended 2011, No. 109 (Adj. Sess.), § 4, eff. May 8, 2012; 2013, No. 29, §§ 10, 11, eff. May 13, 2013; 2013, No. 199 (Adj. Sess.), § 67; 2015, No. 55, § 8; 2019, No. 89 (Adj. Sess.), § 3.)

§ 2440 Social Security number protection

(a) This section shall be known as the Social Security Number Protection Act.

(b) Except as provided in subsection (c) of this section, a business may not do any of the following:

(1) intentionally communicate or otherwise make available to the general public an individual’s Social Security number;

(2) intentionally print or imbed an individual’s Social Security number on any card required for the individual to access products or services provided by the person or entity;

(3) require an individual to transmit his or her Social Security number over the Internet unless the connection is secure or the Social Security number is encrypted;

(4) require an individual to use his or her Social Security number to access an Internet website, unless a password or unique personal identification number or other authentication device is also required to access the internet website;

(5) print an individual’s Social Security number on any materials that are mailed to the individual, unless State or federal law requires the Social Security number to be on the document to be mailed;

(6) sell, lease, lend, trade, rent, or otherwise intentionally disclose an individual’s Social Security number to a third party without written consent to the disclosure from the individual, when the party making the disclosure knows or in the exercise of reasonable diligence would have reason to believe that the third party lacks a legitimate purpose for obtaining the individual’s Social Security number.

(1) When a Social Security number is included in an application or in documents related to an enrollment process, or to establish, amend, or terminate an account, contract, or policy; or to confirm the accuracy of the Social Security number for the purpose of obtaining a credit report pursuant to 15 U.S.C. § 1681(b)(2). A Social Security number that is permitted to be mailed under this section may not be printed, in whole or in part, on a postcard or other mailer not requiring an envelope, or visible on an envelope without the envelope having been opened.

(2) To the collection, use, or release of a Social Security number reasonably necessary for administrative purposes or internal verification.

(3) To the opening of an account or the provision of or payment for a product or service authorized by an individual.

(4) To the collection, use, or release of a Social Security number to investigate or prevent fraud; conduct background checks; conduct social or scientific research; collect a debt; obtain a credit report from or furnish data to a consumer reporting agency pursuant to the Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq.; undertake a permissible purpose enumerated under Gramm Leach Bliley, 12 C.F.R. § 216.13-15; or locate an individual who is missing, is a lost relative, or is due a benefit, such as a pension, insurance, or unclaimed property benefit.

(5) To a business acting pursuant to a court order, warrant, subpoena, or when otherwise required by law, or in response to a facially valid discovery request pursuant to rules applicable to a court or administrative body that has jurisdiction over the disclosing entity.

(6) To a business providing the Social Security number to a federal, State, or local government entity, including a law enforcement agency, the Department of Public Safety, and a court, or their agents or assigns.

(7) To a Social Security number that has been redacted.

(8)(A) To a business that has used, prior to January 1, 2007, an individual’s Social Security number in a manner inconsistent with subsection (b) of this section, which may continue using that individual’s Social Security number in that manner on or after January 1, 2007, if all of the following conditions are met:

(i) The use of the Social Security number is continuous. If the use is stopped for any reason, subsection (b) of this section shall apply.

(ii) The individual is provided an annual disclosure that informs the individual that he or she has the right to stop the use of his or her Social Security number in a manner prohibited by subsection (b) of this section.

(iii) A written request by an individual to stop the use of his or her Social Security number in a manner prohibited by subsection (b) of this section is implemented within 30 days of the receipt of the request. There shall not be a fee or charge for implementing the request.

(iv) The person or entity does not deny services to an individual because the individual makes a written request pursuant to this subsection.

(B) Nothing in this subdivision (8) is intended to apply to the collection, use, or dissemination of Social Security numbers collected prior to January 1, 2007 and exempted from the provisions of subsection (b) of this section pursuant to subdivisions (1) through (7) or (9) and (10) of this subsection.

(9) To information obtained from a recorded document in the official records of the town clerk or municipality.

(10) To information obtained from a document filed in the official records of the courts.

(d) Except as provided in subsection (e) of this section, the State and any State agency, political subdivision of the State, or an agent or employee of the State, may not do any of the following:

(1) Collect a Social Security number from an individual unless authorized or required by law, State or federal regulation, or grant agreement to do so or unless the collection of the Social Security number or records containing the Social Security number is related to the performance of that agency’s duties and responsibilities as prescribed by law.

(2) Fail, when collecting a Social Security number from an individual in a hard copy format, to segregate that number on a separate page from the rest of the record, or as otherwise appropriate, in order that the Social Security number can be more easily redacted pursuant to a valid public records request.

(3) Fail, when collecting a Social Security number from an individual, to provide, at the time of or prior to the actual collection of the Social Security number by that agency, that individual, upon request, with a statement of the purpose or purposes for which the Social Security number is being collected and used.

(4) Use the Social Security number for any purpose other than the purpose set forth in the statement required under subdivision (3) of this subsection.

(5) Intentionally communicate or otherwise make available to the general public a person’s Social Security number.

(6) Intentionally print or imbed an individual’s Social Security number on any card required for the individual to access government services.

(7) Require an individual to transmit the individual’s Social Security number over the Internet, unless the connection is secure or the Social Security number is encrypted.

(8) Require an individual to use the individual’s Social Security number to access an Internet website, unless a password or unique personal identification number or other authentication device is also required to access the Internet website.

(9) Print an individual’s Social Security number on any materials that are mailed to the individual, unless a State or federal law, regulation, or grant agreement requires that the Social Security number be on the document to be mailed. A Social Security number that is permitted to be mailed under this subdivision may not be printed, in whole or in part, on a postcard or other mailer not requiring an envelope, or visible on an envelope, without the envelope having been opened.

(e) Subsection (d) of this section does not apply to:

(1) Social Security numbers disclosed to another governmental entity or its agents, employees, contractors, grantees, or grantors of a governmental entity if disclosure is necessary for the receiving entity to perform its duties and responsibilities. The receiving governmental entity and its agents, employees, and contractors shall maintain the confidential and exempt status of such numbers. As used in this subsection, “necessary” means reasonably needed to promote the efficient, accurate, or economical conduct of an entity’s duties and responsibilities.

(2) Social Security numbers disclosed pursuant to a court order, warrant, or subpoena, or in response to a facially valid discovery request pursuant to rules applicable to a court or administrative body that has jurisdiction over the disclosing entity.

(3) Social Security numbers disclosed for public health purposes pursuant to and in compliance with requirements of the Department of Health under Title 18.

(4) The collection, use, or release of a Social Security number reasonably necessary for administrative purposes or internal verification. Internal verification includes the sharing of information for internal verification between and among governmental entities and their agents, employees, contractors, grantees, and grantors.

(5) Social Security numbers that have been redacted.

(6)(A) A State agency or State political subdivision that has used, prior to January 1, 2007, an individual’s Social Security number in a manner inconsistent with subsection (d) of this section, which may continue using that individual’s Social Security number in that manner on or after January 1, 2007, if all of the following conditions are met:

(i) The use of the Social Security number is continuous. If the use is stopped for any reason, subsection (d) of this section shall apply.

(iii) A written request by an individual to stop the use of his or her Social Security number in a manner prohibited by subsection (d) of this section is implemented within 30 days of the receipt of the request. There shall not be a fee or charge for implementing the request.

(iv) The State agency or State political subdivision does not deny services to an individual because the individual makes a written request pursuant to this subdivision.

(B) Nothing in this subdivision (e)(6) is intended to apply to the collection, use, or dissemination of Social Security numbers collected prior to January 1, 2007 and exempted from the provisions of subsection (d) of this section pursuant to subdivisions (1) through (5) or (7) through (11) of this subsection.

(7) Certified copies of vital records issued by the Department of Health and other authorized officials pursuant to 18 V.S.A. part 6.

(8) A recorded document in the official records of the town clerk or municipality.

(9) A document filed in the official records of the courts.

(10) The collection, use, or dissemination of Social Security numbers by law enforcement agencies and the Department of Public Safety in the execution of their duties and responsibilities.

(11) The collection, use, or release of a Social Security number to investigate or prevent fraud; conduct background checks; conduct social or scientific research; collect a debt; obtain a credit report from or furnish data to a consumer reporting agency pursuant to the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; undertake a permissible purpose enumerated under Gramm Leach Bliley, 12 C.F.R. § 216.13-15; or locate an individual who is missing, is a lost relative, or is due a benefit, such as a pension, insurance, or unclaimed property benefit.

(f) Any person has the right to request that a town clerk or clerk of court remove from an image or copy of an official record placed on a town’s or court’s Internet website available to the general public or an Internet website available to the general public to display public records by the town clerk or clerk of court, the person’s Social Security number, employer taxpayer identification number, driver’s license number, State identification number, passport number, checking account number, savings account number, credit card or debit card number, or personal identification number (PIN) code or passwords contained in that official record. A town clerk or clerk of court is authorized to redact the personal information identified in a request submitted under this section. The request must be made in writing, legibly signed by the requester, and delivered by mail, facsimile, or electronic transmission, or delivered in person to the town clerk or clerk of court. The request must specify the personal information to be redacted, information that identifies the document that contains the personal information and unique information that identifies the location within the document that contains the Social Security number, employer taxpayer identification number, driver’s license number, State identification number, passport number, checking account number, savings account number, credit card number, or debit card number, or personal identification number (PIN) code or passwords to be redacted. The request for redaction shall be considered a public record with access restricted to the town clerk, the clerk of court, their staff, or upon order of the court. The town clerk or clerk of court shall have no duty to inquire beyond the written request to verify the identity of a person requesting redaction and shall have no duty to remove redaction for any reason upon subsequent request by an individual or by order of the court, if impossible to do so. No fee will be charged for the redaction pursuant to such request. Any person who requests a redaction without proper authority to do so shall be guilty of an infraction, punishable by a fine not to exceed $500.00 for each violation.

(g) Enforcement.

(1) With respect to businesses, the State, State agencies, political subdivisions of the State, and agents or employees of the State, a State agency, or a political subdivision of the State, subject to this subchapter, other than a person or entity licensed or registered with the Department of Financial Regulation under Title 8 or this title, the Attorney General and State’s Attorney shall have sole and full authority to investigate potential violations of this subchapter, to enforce, prosecute, obtain, and impose remedies for a violation of this subchapter, or any rules made pursuant to this subchapter, and to adopt rules under this subchapter, as the Attorney General and State’s Attorney have under chapter 63 of this title. The Attorney General may refer the matter to the State’s Attorney in an appropriate case. The Superior Courts shall have jurisdiction over any enforcement matter brought by the Attorney General or a State’s Attorney under this subsection.

(2) With respect to a person or entity licensed or registered with the Department of Financial Regulation under Title 8 or this title, the Department shall have full authority to investigate potential violations of this subchapter, and to prosecute, obtain, and impose remedies for a violation of this subchapter or any rules adopted pursuant to this subchapter as the Department has under Title 8 or this title, or any other applicable law or regulation.

(3) With respect to the information provided by the Vermont Department of Public Safety and law enforcement agencies, and any agent or employee thereof, to the Vermont Attorney General or State’s Attorney pursuant to subdivision (1) of this subsection, the information provided or made available by the agency or Department to the Attorney General may be designated by the agency or Department as confidential, and shall not be released under the provisions of 1 V.S.A. § 317.

(Added 2005, No. 162 (Adj. Sess.), § 1, eff. July 1, 2007.)

Subchapter 3A Student Privacy

§ 2443 Definitions

As used in this subchapter:

(1) “Covered information” means personal information or material, or information that is linked to personal information or material, in any media or format that is:

(A)(i) not publicly available; or

(ii) made publicly available pursuant to the federal Family Educational and Rights and Privacy Act; and

(B)(i) created by or provided to an operator by a student or the student’s parent or legal guardian in the course of the student’s, parent’s, or legal guardian’s use of the operator’s site, service, or application for PreK-12 school purposes;

(ii) created by or provided to an operator by an employee or agent of a school or school district for PreK-12 school purposes; or

(iii) gathered by an operator through the operation of its site, service, or application for PreK-12 school purposes and personally identifies a student, including information in the student’s education record or electronic mail, first and last name, home address, telephone number, electronic mail address or other information that allows physical or online contact, discipline records, test results, special education data, juvenile dependency records, grades, evaluations, criminal records, medical records, health records, Social Security number, biometric information, disability status, socioeconomic information, food purchases, political affiliations, religious information, text messages, documents, student identifiers, search activity, photos, voice recordings, or geolocation information.

(2) “Operator” means, to the extent that an entity is operating in this capacity, the operator of an Internet website, online service, online application, or mobile application with actual knowledge that the site, service, or application is used primarily for PreK-12 school purposes and was designed and marketed for PreK-12 school purposes.

(3) “PreK-12 school purposes” means purposes that are directed by or that customarily take place at the direction of a school, teacher, or school district; aid in the administration of school activities, including instruction in the classroom or at home, administrative activities, and collaboration between students, school personnel, or parents; or are otherwise for the use and benefit of the school.

(4) “School” means:

(A) a public or private preschool, kindergarten, elementary or secondary educational institution, vocational school, special educational agency or institution; and

(B) a person, agency, or institution that maintains school student records from more than one of the entities described in subdivision (6)(A) of this section.

(5) “Targeted advertising” means presenting advertisements to a student where the advertisement is selected based on information obtained or inferred over time from that student’s online behavior, usage of applications, or covered information. The term does not include advertising to a student at an online location based upon that student’s current visit to that location or in response to that student’s request for information or feedback, without the retention of that student’s online activities or requests over time for the purpose in whole or in part of targeting subsequent ads.

(Added 2019, No. 89 (Adj. Sess.), § 4.)

§ 2443a Operator prohibitions

(a) An operator shall not knowingly do any of the following with respect to its site, service, or application:

(1) Engage in targeted advertising on the operator’s site, service, or application or target advertising on any other site, service, or application if the targeting of the advertising is based on any information, including covered information and persistent unique identifiers, that the operator has acquired because of the use of that operator’s site, service, or application for PreK-12 school purposes.

(2) Use information, including a persistent unique identifier, that is created or gathered by the operator’s site, service, or application to amass a profile about a student, except in furtherance of PreK-12 school purposes. “Amass a profile” does not include the collection and retention of account information that remains under the control of the student, the student’s parent or legal guardian, or the school.

(3) Sell, barter, or rent a student’s information, including covered information. This subdivision (3) does not apply to the purchase, merger, or other type of acquisition of an operator by another entity if the operator or successor entity complies with this subchapter regarding previously acquired student information.

(4) Except as otherwise provided in section 2443c of this title, disclose covered information, unless the disclosure is made for one or more of the following purposes and is proportionate to the identifiable information necessary to accomplish the purpose:

(A) to further the PreK-12 school purposes of the site, service, or application, provided:

(i) the recipient of the covered information does not further disclose the information except to allow or improve operability and functionality of the operator’s site, service, or application; and

(ii) the covered information is not used for a purpose inconsistent with this subchapter;

(B) to ensure legal and regulatory compliance or take precautions against liability;

(D) to protect the safety or integrity of users of the site or others or the security of the site, service, or application;

(E) for a school, educational, or employment purpose requested by the student or the student’s parent or legal guardian, provided that the information is not used or further disclosed for any other purpose; or

(F) to a third party if the operator contractually prohibits the third party from using any covered information for any purpose other than providing the contracted service to or on behalf of the operator, prohibits the third party from disclosing any covered information provided by the operator to subsequent third parties, and requires the third party to implement and maintain reasonable security procedures and practices.

(b) This section does not prohibit an operator’s use of information for maintaining, developing, supporting, improving, or diagnosing the operator’s site, service, or application.

(Added 2019, No. 89 (Adj. Sess.), § 4.)

§ 2443b Operator duties

An operator shall:

(1) implement and maintain reasonable security procedures and practices appropriate to the nature of the covered information and designed to protect that covered information from unauthorized access, destruction, use, modification, or disclosure;

(2) delete, within a reasonable time period and to the extent practicable, a student’s covered information if the school or school district requests deletion of covered information under the control of the school or school district, unless a student or his or her parent or legal guardian consents to the maintenance of the covered information; and

(3) publicly disclose and provide the school with material information about its collection, use, and disclosure of covered information, including publishing a term of service agreement, privacy policy, or similar document.

(Added 2019, No. 89 (Adj. Sess.), § 4.)

§ 2443c Permissive use or disclosure

An operator may use or disclose covered information of a student under the following circumstances:

(1) if other provisions of federal or State law require the operator to disclose the information and the operator complies with the requirements of federal and State law in protecting and disclosing that information;

(2) for legitimate research purposes as required by State or federal law and subject to the restrictions under applicable State and federal law or as allowed by State or federal law and under the direction of a school, school district, or the State Board of Education if the covered information is not used for advertising or to amass a profile on the student for purposes other than for PreK-12 school purposes; and

(3) disclosure to a State or local educational agency, including schools and school districts, for PreK-12 school purposes as permitted by State or federal law.

(Added 2019, No. 89 (Adj. Sess.), § 4.)

§ 2443d Operator actions that are not prohibited

This subchapter does not prohibit an operator from doing any of the following:

(1) using covered information to improve educational products if that information is not associated with an identified student within the operator’s site, service, or application or other sites, services, or applications owned by the operator;

(2) using covered information that is not associated with an identified student to demonstrate the effectiveness of the operator’s products or services, including in their marketing;

(3) sharing covered information that is not associated with an identified student for the development and improvement of educational sites, services, or applications;

(4) using recommendation engines to recommend to a student either of the following:

(A) additional content relating to an educational, other learning, or employment opportunity purpose within an online site, service, or application if the recommendation is not determined in whole or in part by payment or other consideration from a third party; or

(B) additional services relating to an educational, other learning, or employment opportunity purpose within an online site, service, or application if the recommendation is not determined in whole or in part by payment or other consideration from a third party; and

(5) responding to a student’s request for information or for feedback without the information or response being determined in whole or in part by payment or other consideration from a third party.

(Added 2019, No. 89 (Adj. Sess.), § 4.)

§ 2443e Applicability

This subchapter does not:

(1) limit the authority of a law enforcement agency to obtain any content or information from an operator as authorized by law or under a court order;

(2) limit the ability of an operator to use student data, including covered information, for adaptive learning or customized student learning purposes;

(3) apply to general audience Internet websites, general audience online services, general audience online applications, or general audience mobile applications, even if login credentials created for an operator’s site, service, or application may be used to access those general audience sites, services, or applications;

(4) limit service providers from providing Internet connectivity to schools or students and their families;

(5) prohibit an operator of an Internet website, online service, online application, or mobile application from marketing educational products directly to parents if the marketing did not result from the use of covered information obtained by the operator through the provision of services covered under this subchapter;

(6) impose a duty upon a provider of an electronic store, gateway, marketplace, or other means of purchasing or downloading software or applications to review or enforce compliance with this subchapter on those applications or software;

(7) impose a duty upon a provider of an interactive computer service, as defined in 47 U.S.C. § 230, to review or enforce compliance with this subchapter by third-party content providers;

(8) prohibit students from downloading, exporting, transferring, saving, or maintaining their own student-created data or documents; or

(9) supersede the federal Family Educational Rights and Privacy Act or rules adopted pursuant to that Act.

(Added 2019, No. 89 (Adj. Sess.), § 4.)

§ 2443f Enforcement

A person who violates a provision of this chapter commits an unfair and deceptive act in commerce in violation of section 2453 of this title.

(Added 2019, No. 89 (Adj. Sess.), § 4.)

Subchapter 4 Document Safe Destruction Act

§ 2445 Safe destruction of documents containing personal information

(a) As used in this section:

(1) “Business” means sole proprietorship, partnership, corporation, association, limited liability company, or other group, however organized and whether or not organized to operate at a profit, including a financial institution organized, chartered, or holding a license or authorization certificate under the laws of this State, any other state, the United States, or any other country, or the parent, affiliate, or subsidiary of a financial institution, but in no case shall it include the State, a State agency, or any political subdivision of the State. The term includes an entity that destroys records.

(2) “Customer” means an individual who provides personal information to a business for the purpose of purchasing or leasing a product or obtaining a service from the business.

(3) “Personal information” means the following information that identifies, relates to, describes, or is capable of being associated with a particular individual: his or her signature, Social Security number, physical characteristics or description, passport number, driver’s license or State identification card number, insurance policy number, bank account number, credit card number, debit card number, or any other financial information.

(4)(A) “Record” means any material, regardless of the physical form, on which information is recorded or preserved by any means, including in written or spoken words, graphically depicted, printed, or electromagnetically transmitted.

(B) “Record” does not include publicly available directories containing information an individual has voluntarily consented to have publicly disseminated or listed, such as name, address, or telephone number.

(b) A business shall take all reasonable steps to destroy or arrange for the destruction of a customer’s records within its custody or control containing personal information that is no longer to be retained by the business by shredding, erasing, or otherwise modifying the personal information in those records to make it unreadable or indecipherable through any means for the purpose of:

(1) ensuring the security and confidentiality of customer personal information;

(2) protecting against any anticipated threats or hazards to the security or integrity of customer personal information; and

(3) protecting against unauthorized access to or use of customer personal information that could result in substantial harm or inconvenience to any customer.

(c) An entity that is in the business of disposing of personal financial information that conducts business in Vermont or disposes of personal information of residents of Vermont must take all reasonable measures to dispose of records containing personal information by implementing and monitoring compliance with policies and procedures that protect against unauthorized access to or use of personal information during or after the collection and transportation and disposing of such information.

(d) This section does not apply to any of the following:

(1) any bank, credit union, or financial institution as defined under the federal Gramm Leach Bliley law that is subject to the regulation of the Office of the Comptroller of the Currency, the Federal Reserve, the National Credit Union Administration, the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision of the U.S. Department of the Treasury, or the Department of Financial Regulation and is subject to the privacy and security provisions of the Gramm Leach Bliley Act, 15 U.S.C. § 6801 et seq.;

(2) any health insurer or health care facility that is subject to and in compliance with the standards for privacy of individually identifiable health information and the security standards for the protection of electronic health information of the Health Insurance Portability and Accountability Act of 1996; or

(3) any consumer reporting agency that is subject to and in compliance with the Federal Credit Reporting Act, 15 U.S.C. § 1681 et seq., as amended.

(e) Enforcement.

(1) With respect to all businesses subject to this section, other than a person or entity licensed or registered with the Department of Financial Regulation under Title 8 or this title, the Attorney General and State’s Attorney shall have sole and full authority to investigate potential violations of this section, and to prosecute, obtain, and impose remedies for a violation of this section, or any rules adopted pursuant to this section, and to adopt rules under this chapter, as the Attorney General and State’s Attorney have under chapter 63 of this title. The Superior Courts shall have jurisdiction over any enforcement matter brought by the Attorney General or a State’s Attorney under this subsection.

(2) With respect to a person or entity licensed or registered with the Department of Financial Regulation under Title 8 or this title to do business in this State, the Department of Financial Regulation shall have full authority to investigate potential violations of this chapter, and to prosecute, obtain, and impose remedies for a violation of this chapter, or any rules or regulations made pursuant to this chapter, as the Department has under Title 8 and this title, or any other applicable law or regulation.

(Added 2005, No. 162 (Adj. Sess.), § 1, eff. Jan. 1, 2007.)

Subchapter 5 Data Brokers

§ 2446 Annual registration

(a) Annually, on or before January 31 following a year in which a person meets the definition of data broker as provided in section 2430 of this title, a data broker shall:

(1) register with the Secretary of State;

(2) pay a registration fee of $100.00; and

(3) provide the following information:

(A) the name and primary physical, e-mail, and Internet addresses of the data broker;

(B) if the data broker permits a consumer to opt out of the data broker’s collection of brokered personal information, opt out of its databases, or opt out of certain sales of data:

(i) the method for requesting an opt-out;

(ii) if the opt-out applies to only certain activities or sales, which ones; and

(iii) whether the data broker permits a consumer to authorize a third party to perform the opt-out on the consumer’s behalf;

(D) a statement whether the data broker implements a purchaser credentialing process;

(E) the number of data broker security breaches that the data broker has experienced during the prior year, and if known, the total number of consumers affected by the breaches;

(F) where the data broker has actual knowledge that it possesses the brokered personal information of minors, a separate statement detailing the data collection practices, databases, sales activities, and opt-out policies that are applicable to the brokered personal information of minors; and

(G) any additional information or explanation the data broker chooses to provide concerning its data collection practices.

(b) A data broker that fails to register pursuant to subsection (a) of this section is liable to the State for:

(1) a civil penalty of $50.00 for each day, not to exceed a total of $10,000.00 for each year, it fails to register pursuant to this section;

(2) an amount equal to the fees due under this section during the period it failed to register pursuant to this section; and

(3) other penalties imposed by law.

(c) The Attorney General may maintain an action in the Civil Division of the Superior Court to collect the penalties imposed in this section and to seek appropriate injunctive relief.

(Added 2017, No. 171 (Adj. Sess.), § 2, eff. Jan. 1, 2019.)

§ 2447 Data broker duty to protect information; standards; technical requirements

(a) Duty to protect personally identifiable information.

(1) A data broker shall develop, implement, and maintain a comprehensive information security program that is written in one or more readily accessible parts and contains administrative, technical, and physical safeguards that are appropriate to:

(A) the size, scope, and type of business of the data broker obligated to safeguard the personally identifiable information under such comprehensive information security program;

(B) the amount of resources available to the data broker;

(D) the need for security and confidentiality of personally identifiable information.

(2) A data broker subject to this subsection shall adopt safeguards in the comprehensive security program that are consistent with the safeguards for protection of personally identifiable information and information of a similar character set forth in other State rules or federal regulations applicable to the data broker.

(b) Information security program; minimum features. A comprehensive information security program shall at minimum have the following features:

(1) designation of one or more employees to maintain the program;

(2) identification and assessment of reasonably foreseeable internal and external risks to the security, confidentiality, and integrity of any electronic, paper, or other records containing personally identifiable information, and a process for evaluating and improving, where necessary, the effectiveness of the current safeguards for limiting such risks, including:

(A) ongoing employee training, including training for temporary and contract employees;

(B) employee compliance with policies and procedures; and

(3) security policies for employees relating to the storage, access, and transportation of records containing personally identifiable information outside business premises;

(4) disciplinary measures for violations of the comprehensive information security program rules;

(5) measures that prevent terminated employees from accessing records containing personally identifiable information;

(6) supervision of service providers, by:

(A) taking reasonable steps to select and retain third-party service providers that are capable of maintaining appropriate security measures to protect personally identifiable information consistent with applicable law; and

(B) requiring third-party service providers by contract to implement and maintain appropriate security measures for personally identifiable information;

(7) reasonable restrictions upon physical access to records containing personally identifiable information and storage of the records and data in locked facilities, storage areas, or containers;

(8)(A) regular monitoring to ensure that the comprehensive information security program is operating in a manner reasonably calculated to prevent unauthorized access to or unauthorized use of personally identifiable information; and

(B) upgrading information safeguards as necessary to limit risks;

(9) regular review of the scope of the security measures:

(A) at least annually; or

(B) whenever there is a material change in business practices that may reasonably implicate the security or integrity of records containing personally identifiable information; and

(10)(A) documentation of responsive actions taken in connection with any incident involving a breach of security; and

(B) mandatory post-incident review of events and actions taken, if any, to make changes in business practices relating to protection of personally identifiable information.

(c) Information security program; computer system security requirements. A comprehensive information security program required by this section shall at minimum, and to the extent technically feasible, have the following elements:

(1) secure user authentication protocols, as follows:

(A) an authentication protocol that has the following features:

(i) control of user IDs and other identifiers;

(ii) a reasonably secure method of assigning and selecting passwords or use of unique identifier technologies, such as biometrics or token devices;

(iii) control of data security passwords to ensure that such passwords are kept in a location and format that do not compromise the security of the data they protect;

(iv) restricting access to only active users and active user accounts; and

(v) blocking access to user identification after multiple unsuccessful attempts to gain access; or

(B) an authentication protocol that provides a higher level of security than the features specified in subdivision (A) of this subdivision (c)(1);

(2) secure access control measures that:

(A) restrict access to records and files containing personally identifiable information to those who need such information to perform their job duties; and

(B) assign to each person with computer access unique identifications plus passwords, which are not vendor-supplied default passwords, that are reasonably designed to maintain the integrity of the security of the access controls or a protocol that provides a higher degree of security;

(3) encryption of all transmitted records and files containing personally identifiable information that will travel across public networks and encryption of all data containing personally identifiable information to be transmitted wirelessly or a protocol that provides a higher degree of security;

(4) reasonable monitoring of systems for unauthorized use of or access to personally identifiable information;

(5) encryption of all personally identifiable information stored on laptops or other portable devices or a protocol that provides a higher degree of security;

(6) for files containing personally identifiable information on a system that is connected to the Internet, reasonably up-to-date firewall protection and operating system security patches that are reasonably designed to maintain the integrity of the personally identifiable information or a protocol that provides a higher degree of security;

(7) reasonably up-to-date versions of system security agent software that must include malware protection and reasonably up-to-date patches and virus definitions, or a version of such software that can still be supported with up-to-date patches and virus definitions and is set to receive the most current security updates on a regular basis or a protocol that provides a higher degree of security; and

(8) education and training of employees on the proper use of the computer security system and the importance of personally identifiable information security.

(d) Enforcement.

(1) A person who violates a provision of this section commits an unfair and deceptive act in commerce in violation of section 2453 of this title.

(2) The Attorney General has the same authority to adopt rules to implement the provisions of this chapter and to conduct civil investigations, enter into assurances of discontinuance, and bring civil actions as provided under chapter 63, subchapter 1 of this title.

(Added 2017, No. 171 (Adj. Sess.), § 2, eff. Jan. 1, 2019.)

Subchapter 6 Vermont Age-Appropriate Design Code Act

§ 2449a Definitions [Effective January 1, 2027]

As used in this subchapter:

(1)(A) “Affiliate” means a legal entity that shares common branding with another legal entity or controls, is controlled by, or is under common control with another legal entity.

(B) As used in subdivision (A) of this subdivision (1), “control” or “controlled” means:

(i) ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of voting security of a company;

(ii) control in any manner over the election of a majority of the directors or of individuals exercising similar functions; or

(iii) the power to exercise controlling influence over the management of a company.

(2) “Age assurance” encompasses a range of methods used to determine, estimate, or communicate the age or an age range of an online user.

(3) “Age range” means either an interval with an upper and lower age limit or a label indicating age above or below a specific age.

(4) “Algorithmic recommendation system” means a system that uses an algorithm to select, filter, and arrange media on a covered business’s website for the purpose of selecting, recommending, or prioritizing media for a user.

(5)(A) “Biometric data” means data generated from the technological processing of an individual’s unique biological, physical, or physiological characteristics that allow or confirm the unique identification of the consumer, including:

(i) iris or retina scans;

(ii) fingerprints;

(iii) facial or hand mapping, geometry, or templates;

(iv) vein patterns;

(v) voice prints or vocal biomarkers; and

(vi) gait or personally identifying physical movement or patterns.

(B) “Biometric data” does not include:

(i) a digital or physical photograph;

(ii) an audio or video recording; or

(iii) any data generated from a digital or physical photograph, or an audio or video recording, unless such data is generated to identify a specific individual.

(6) “Business associate” has the same meaning as in the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191 (HIPAA).

(7) “Collect” means buying, renting, gathering, obtaining, receiving, or accessing any personal data by any means. This includes receiving data from the consumer, either actively or passively, or by observing the consumer’s behavior.

(8) “Compulsive use” means the repetitive use of a covered business’s service that materially disrupts one or more major life activities of a minor, including sleeping, eating, learning, reading, concentrating, communicating, or working.

(9)(A) “Consumer” means an individual who is a resident of the State.

(B) “Consumer” does not include an individual acting in a commercial or employment context or as an employee, owner, director, officer, or contractor of a company, partnership, sole proprietorship, nonprofit, or government agency whose communications or transactions with the covered business occur solely within the context of that individual’s role with the company, partnership, sole proprietorship, nonprofit, or government agency.

(10) “Covered business” means a sole proprietorship, partnership, limited liability company, corporation, association, other legal entity, or an affiliate thereof:

(A) that conducts business in this State;

(B) that generates a majority of its annual revenue from online services;

(D) that collects consumers’ personal data or has consumers’ personal data collected on its behalf by a processor; and

(E) that alone or jointly with others determines the purposes and means of the processing of consumers’ personal data.

(11) “Covered entity” has the same meaning as in HIPAA.

(12) “Covered minor” is a consumer who a covered business actually knows is a minor or labels as a minor pursuant to age assurance methods in rules adopted by the Attorney General.

(13) “Default” means a preselected option adopted by the covered business for the online service, product, or feature.

(14) “De-identified data” means data that does not identify and cannot reasonably be used to infer information about, or otherwise be linked to, an identified or identifiable individual, or a device linked to the individual, if the covered business that possesses the data:

(A)(i) takes reasonable measures to ensure that the data cannot be used to reidentify an identified or identifiable individual or be associated with an individual or device that identifies or is linked or reasonably linkable to an individual or household; and

(ii) for purposes of this subdivision (A), “reasonable measures” includes the de-identification requirements set forth under 45 C.F.R. § 164.514 (other requirements relating to uses and disclosures of protected health information);

(B) publicly commits to process the data only in a de-identified fashion and not attempt to reidentify the data; and

(15) “Derived data” means data that is created by the derivation of information, data, assumptions, correlations, inferences, predictions, or conclusions from facts, evidence, or another source of information or data about a minor or a minor’s device.

(16) “Genetic data” means any data, regardless of its format, that results from the analysis of a biological sample of an individual, or from another source enabling equivalent information to be obtained, and concerns genetic material, including deoxyribonucleic acids (DNA), ribonucleic acids (RNA), genes, chromosomes, alleles, genomes, alterations or modifications to DNA or RNA, single nucleotide polymorphisms (SNPs), epigenetic markers, uninterpreted data that results from analysis of the biological sample or other source, and any information extrapolated, derived, or inferred therefrom.

(17) “Identified or identifiable individual” means an individual who can be readily identified, directly or indirectly, including by reference to an identifier such as a name, an identification number, specific geolocation data, or an online identifier.

(18) “Known adult” is a consumer who a covered business actually knows is an adult or labels as an adult pursuant to age assurance methods in rules adopted by the Attorney General.

(19) “Minor” means an individual under 18 years of age.

(20) “Online service, product, or feature” means a digital product that is accessible to the public via the internet, including a website or application, and does not mean any of the following:

(A) telecommunications service, as defined in 47 U.S.C. § 153;

(B) a broadband internet access service as defined in 47 C.F.R. § 54.400; or

(21)(A) “Personal data” means any information, including derived data and unique identifiers, that is linked or reasonably linkable, alone or in combination with other information, to an identified or identifiable individual or to a device that identifies, is linked to, or is reasonably linkable to one or more identified or identifiable individuals in a household.

(B) Personal data does not include de-identified data or publicly available information.

(22) “Process” or “processing” means any operation or set of operations performed, whether by manual or automated means, on personal data or on sets of personal data, such as the collection, use, storage, disclosure, analysis, deletion, modification, or otherwise handling of personal data.

(23) “Processor” means a person who processes personal data on behalf of:

(A) a covered business;

(B) another processor; or

(24) “Profiling” means any form of automated processing performed on personal data to evaluate, analyze, or predict personal aspects, including an individual’s economic situation, health, personal preferences, interests, reliability, behavior, location, movements, or identifying characteristics.

(25)(A) “Publicly available information” means information that:

(i) is made available through federal, state, or local government records or to the general public from widely distributed media; or

(ii) a covered business has a reasonable basis to believe that the consumer has lawfully made available to the general public.

(B) “Publicly available information” does not include:

(i) biometric data collected by a business about a consumer without the consumer’s knowledge;

(ii) information that is collated and combined to create a consumer profile that is made available to a user of a publicly available website either in exchange for payment or free of charge;

(iii) information that is made available for sale;

(iv) an inference that is generated from the information described in subdivision (ii) or (iii) of this subdivision (25)(B);

(v) any obscene visual depiction, as defined in 18 U.S.C. § 1460;

(vi) personal data that is created through the combination of personal data with publicly available information;

(vii) genetic data, unless otherwise made publicly available by the consumer to whom the information pertains;

(viii) information provided by a consumer on a website or online service made available to all members of the public, for free or for a fee, where the consumer has maintained a reasonable expectation of privacy in the information, such as by restricting the information to a specific audience; or

(ix) intimate images, authentic or computer-generated, known to be nonconsensual.

(26) “Reasonably likely to be accessed” means an online service, product, or feature that is reasonably likely to be accessed by a covered minor based on any of the following indicators:

(A) the online service, product, or feature is directed to children, as defined by the Children’s Online Privacy Protection Act, 15 U.S.C. §§ 6501–6506 and the Federal Trade Commission rules implementing that Act;

(B) the online service, product, or feature is determined, based on competent and reliable evidence regarding audience composition, to be routinely accessed by an audience that is composed of at least two percent minors two through 17 years of age;

(C) the audience of the online service, product, or feature is determined, based on internal company research, to be composed of at least two percent minors two through 17 years of age; or

(D) the covered business knew or should have known that at least two percent of the audience of the online service, product, or feature includes minors two through 17 years of age, provided that, in making this assessment, the business shall not collect or process any personal data that is not reasonably necessary to provide an online service, product, or feature with which a minor is actively and knowingly engaged.

(27)(A) “Social media platform” means a public or semipublic internet-based service or application that is primarily intended to connect and allow a user to socially interact within such service or application and enables a user to:

(i) construct a public or semipublic profile for the purposes of signing into and using such service or application;

(ii) populate a public list of other users with whom the user shares a social connection within such service or application; or

(iii) create or post content that is viewable by other users, including content on message boards and in chat rooms, and that presents the user with content generated by other users.

(B) “Social media platform” does not mean a public or semipublic internet-based service or application that:

(i) exclusively provides email or direct messaging services; or

(ii) is used by and under the direction of an educational entity, including a learning management system or a student engagement program.

(28) “Third party” means a natural or legal person, public authority, agency, or body other than the covered minor or the covered business.

(Added 2025, No. 63, § 1, eff. January 1, 2027.)

§ 2449b Exclusions [Effective January 1, 2027]

This subchapter does not apply to:

(1) a federal, state, tribal, or local government entity in the ordinary course of its operation;

(2) protected health information that a covered entity or business associate processes in accordance with, or documents that a covered entity or business associate creates for the purpose of complying with, HIPAA;

(3) information used only for public health activities and purposes described in 45 C.F.R. § 164.512;

(4) information that identifies a consumer in connection with:

(A) activities that are subject to the Federal Policy for the Protection of Human Subjects as set forth in 45 C.F.R. Part 46;

(B) research on human subjects undertaken in accordance with good clinical practice guidelines issued by the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use;

(D) research conducted in accordance with the requirements set forth in subdivisions (A)–(C) of this subdivision (4) or otherwise in accordance with State or federal law;

(5) an entity whose primary purpose is journalism as defined in 12 V.S.A. § 1615(a)(2) and that has a majority of its workforce consisting of individuals engaging in journalism; and

(6) a financial institution subject to Title V of the Gramm-Leach-Bliley Act, Pub. L. No. 106-102, and regulations adopted to implement that act.

(Added 2025, No. 63, § 1, eff. January 1, 2027.)

§ 2449c Minimum duty of care [Effective January 1, 2027]

(a) A covered business that processes a covered minor’s data in any capacity owes a minimum duty of care to the covered minor.

(b) As used in this subchapter, “a minimum duty of care” means the use of the personal data of a covered minor and the design of an online service, product, or feature will not result in:

(1) reasonably foreseeable emotional distress as defined in 13 V.S.A. § 1061(2) to a covered minor;

(2) reasonably foreseeable compulsive use of the online service, product, or feature by a covered minor; or

(3) discrimination against a covered minor based upon race, ethnicity, sex, disability, sexual orientation, gender identity, gender expression, religion, or national origin.

(c) The content of the media viewed by a covered minor shall not establish emotional distress, compulsive use, or discrimination, as those terms are used in subsection (b) of this section.

(d) Nothing in this section shall be construed to require a covered business to prevent or preclude a covered minor from accessing or viewing any piece of media or category of media.

(Added 2025, No. 63, § 1, eff. January 1, 2027.)

§ 2449d Required default privacy settings and tools [Effective January 1, 2027]

(a) Default privacy settings.

(1) A covered business shall configure all default privacy settings provided to a covered minor through the online service, product, or feature to the highest level of privacy, including the following default settings:

(A) not displaying the existence of the covered minor’s account on a social media platform to any known adult user unless the covered minor has expressly and unambiguously allowed a specific known adult user to view their account or has expressly and unambiguously chosen to make their account’s existence public;

(B) not displaying media created or posted by the covered minor on a social media platform to any known adult user unless the covered minor has expressly and unambiguously allowed a specific known adult user to view their media or has expressly and unambiguously chosen to make their media publicly available;

(C) not permitting any known adult users to like, comment on, or otherwise provide feedback on the covered minor’s media on a social media platform unless the covered minor has expressly and unambiguously allowed a specific known adult user to do so;

(D) not permitting direct messaging on a social media platform between the covered minor and any known adult user unless the covered minor has expressly and unambiguously decided to allow direct messaging with a specific known adult user;

(E) not displaying the covered minor’s location to other users, unless the covered minor expressly and unambiguously shares their location with a specific user;

(F) not displaying the users connected to the covered minor on a social media platform unless the covered minor expressly and unambiguously chooses to share the information with a specific user;

(G) disabling search engine indexing of the covered minor’s account profile; and

(H) not sending push notifications to the covered minors.

(2) A covered business shall not:

(A) provide a covered minor with a single setting that makes all of the default privacy settings less protective at once; or

(B) request or prompt a covered minor to make their privacy settings less protective, unless the change is strictly necessary for the covered minor to access a service or feature they have expressly and unambiguously requested.

(b) Timely deletion of account. A covered business shall:

(1) provide a prominent, accessible, and responsive tool to allow a covered minor to request the covered minor’s account on a social media platform be unpublished or deleted; and

(2) honor that request not later than 15 days after a covered business receives the request.

(Added 2025, No. 63, § 1, eff. January 1, 2027.)

§ 2449e Transparency [Effective January 1, 2027]

A covered business shall prominently and clearly provide on their website or mobile application:

(1) the covered business’s privacy information, terms of service, policies, and community standards;

(2) the purpose of each algorithmic recommendation system in use by the covered business;

(3) inputs used by the algorithmic recommendation system and how each input:

(A) is measured or determined;

(B) uses the personal data of covered minors;

(D) is weighed relative to the other inputs reported in this subdivision (3); and

(4) descriptions, for every feature of the service that uses the personal data of covered minors, of:

(A) the purpose of the service feature;

(B) the personal data collected by the service feature;

(D) how the personal data is used by the service feature;

(E) any personal data transferred to or shared with a processor or third party by the service feature, the identity of the processor or third party, and the purpose of the transfer or sharing; and

(F) how long the personal data is retained.

(Added 2025, No. 63, § 1, eff. January 1, 2027.)

§ 2449f Prohibited data and design practices [Effective January 1, 2027]

[Subsection (a) effective January 1, 2027.]

(a) Data privacy. A covered business shall not:

(1) collect, sell, share, or retain any personal data of a covered minor that is not necessary to provide an online service, product, or feature with which the covered minor is actively and knowingly engaged;

(2) use previously collected personal data of a covered minor for any purpose other than a purpose for which the personal data was collected, unless necessary to comply with any obligation under this chapter;

(3) permit any individual, including a parent or guardian of a covered minor, to monitor the online activity of a covered minor or to track the location of the covered minor without providing a conspicuous signal to the covered minor when the covered minor is being monitored or tracked;

(4) use the personal data of a covered minor to select, recommend, or prioritize media for the covered minor, unless the personal data is:

(A) the covered minor’s express and unambiguous request to receive:

(i) media from a specific account, feed, or user, or to receive more or less media from that account, feed, or user;

(ii) a specific category of media, such as “cat videos” or “breaking news,” or to see more or less of that category of media; or

(iii) more or less media with similar characteristics as the media they are currently viewing;

(B) user-selected privacy or accessibility settings; or

(5) send push notifications to a covered minor between 12:00 midnight and 6:00 a.m.

(b) Rulemaking. The Attorney General shall, on or before January 1, 2027, adopt rules pursuant to this subchapter that prohibit data processing or design practices of a covered business that, in the opinion of the Attorney General, lead to compulsive use or subvert or impair user autonomy, decision making, or choice during the use of an online service, product, or feature of the covered business. The Attorney General shall, at least once every two years, review and update these rules as necessary to keep pace with emerging technology.

(Added 2025, No. 63, § 1, eff. January 1, 2027.)

§ 2449g Age assurance privacy [Effective January 1, 2027]

[Subsection (a) effective January 1, 2027.]

(a) Privacy protections for age assurance data. During the process of conducting age assurance, covered businesses and processors shall:

(1) only collect personal data of a user that is strictly necessary for age assurance;

(2) immediately upon determining whether a user is a covered minor, delete any personal data collected of that user for age assurance, except the determination of the user’s age range;

(3) not use any personal data of a user collected for age assurance for any other purpose;

(4) not combine personal data of a user collected for age assurance, except the determination of the user’s age range, with any other personal data of the user;

(5) not disclose personal data of a user collected for age assurance to a third party that is not a processor; and

(6) implement a review process to allow users to appeal their age determination.

(b) Rulemaking.

(1) Subject to subdivision (2) of this subsection, the Attorney General shall, on or before January 1, 2027, adopt rules identifying commercially reasonable and technically feasible methods for covered businesses and processors to determine if a user is a covered minor, describing appropriate review processes for users appealing their age designations, and providing any additional privacy protections for age assurance data. The Attorney General shall periodically review and update these rules as necessary to keep pace with emerging technology.

(2) In adopting these rules, the Attorney General shall:

(A) prioritize user privacy and accessibility over the accuracy of age assurance methods; and

(B) consider:

(i) the size, financial resources, and technical capabilities of covered businesses and processors;

(ii) the costs and effectiveness of available age assurance methods;

(iii) the impact of age assurance methods on users’ safety, utility, and experience;

(iv) whether and to what extent transparency measures would increase consumer trust in an age assurance method; and

(v) the efficacy of requiring covered businesses and processors to:

(I) use previously collected data to determine user age;

(II) adopt interoperable age assurance methods; and

(III) provide users with multiple options for age assurance.

(Added 2025, No. 63, § 1, eff. January 1, 2027.)

§ 2449h Enforcement [Effective January 1, 2027]

(a) A covered business or processor that violates this subchapter or rules adopted pursuant to this subchapter commits an unfair and deceptive act in commerce in violation of section 2453 of this title.

(b) The Attorney General shall have the same authority under this subchapter to make rules, conduct civil investigations, bring civil actions, and enter into assurances of discontinuance as provided under chapter 63 of this title.

(Added 2025, No. 63, § 1, eff. January 1, 2027.)

§ 2449i Limitations [Effective January 1, 2027]

Nothing in this subchapter shall be interpreted or construed to:

(1) impose liability in a manner that is inconsistent with 47 U.S.C. § 230; or

(2) prevent or preclude any covered minor from deliberately or independently searching for, or specifically requesting, any media.

(Added 2025, No. 63, § 1, eff. January 1, 2027.)

§ 2449j Rights and freedoms of covered minors [Effective January 1, 2027]

It is the intent of the General Assembly that nothing in this subchapter may be construed to infringe on the existing rights and freedoms of covered minors or be construed to discriminate against the covered minors based on race, ethnicity, sex, disability, sexual orientation, gender identity, gender expression, religion, or national origin.

(Added 2025, No. 63, § 1, eff. January 1, 2027.)

Chapter 63 Consumer Protection

Subchapter 1 General Provisions

§ 2451 Purpose

The purpose of this chapter is to complement the enforcement of federal statutes and decisions governing unfair methods of competition, unfair or deceptive acts or practices, and anti-competitive practices in order to protect the public and to encourage fair and honest competition.

(Added 1967, No. 132, § 1, eff. April 17, 1967; amended 2011, No. 168 (Adj. Sess.), § 2, eff. May 18, 2012.)

§ 2451a Definitions

As used in this chapter:

(1) “Consumer” means any person who purchases, leases, contracts for, or otherwise agrees to pay consideration for goods or services not for resale in the ordinary course of the person’s trade or business but for the person’s use or benefit or the use or benefit of a member of the person’s household, or in connection with the operation of the person’s household or a farm whether or not the farm is conducted as a trade or business, or a person who purchases, leases, contracts for, or otherwise agrees to pay consideration for goods or services not for resale in the ordinary course of the person’s trade or business but for the use or benefit of the person’s business or in connection with the operation of the person’s business.

(2) “Goods” or “services” shall include any objects, wares, goods, commodities, work, labor, intangibles, courses of instruction or training, securities, bonds, debentures, stocks, real estate, or other property or services of any kind. The term also includes bottled liquified petroleum (LP or propane) gas.

(3) “Seller” means a person regularly and principally engaged in a business of selling goods or services to consumers.

(4) “Home solicitation sale” means the sale or lease, or the offer for sale or lease, of goods or services with a purchase price of $5.00 or more, whether under single or multiple contracts, where the sale, lease, or offer thereof is either personally solicited or consummated by a seller at the residence or place of business or employment of the consumer, or at a seller’s transient quarters, or solicited or consummated by a seller wholly or in part by telephone with a consumer at the residence or place of business or employment of the consumer. Transient quarters includes hotel or motel rooms, or any other place utilized as a temporary business location. The term “home solicitation sale” does not include a transaction:

(A) Made pursuant to prior negotiations in the course of a visit by the consumer to a retail business establishment having a fixed permanent location where the goods are exhibited or the services are offered for sale on a continuing basis.

(B) In which the consumer has initiated the contact and specifically requested the seller to visit the consumer’s home for the purpose of repairing or performing maintenance upon the consumer’s personal property. If, in the course of such a visit, the seller sells the consumer the right to receive additional services or goods other than replacement parts necessarily used in performing the maintenance or in making the repairs, the sale of those additional goods or services would not fall within this exclusion.

(C) Conducted and consummated entirely by mail and without any other contact between the consumer and the seller prior to delivery of the goods or performance of the services.

(D) With a purchase price of under $25.00 where the consumer is not required to sign any contract, receipt, sales ticket, evidence of indebtedness, or other writing, and the goods, services, or merchandise purchased are capable of delivery or performance at one time.

(E) Pertaining to the sale or rental of real property, to the sale of insurance, to the sale of securities by a broker dealer registered with the Securities and Exchange Commission, or to the sale of commodities by any person registered with the Commodity Futures Trading Commission.

(F) Where, in the case of goods, the buyer may at any time:

(i)(I) cancel the order prior to delivery of the goods and receive a full refund for any monies paid;

(II) refuse to accept the goods when delivered, without incurring any obligation to pay for them and receive a full refund for any monies paid; or

(III) return the goods to the seller and receive a full refund for any monies paid;

(ii) the buyer’s right to cancel the order or return the goods without obligation or charge at any time and receive a full refund for any monies paid is clearly and unmistakably set forth on the face or reverse side of the sales ticket; and

(iii) the goods or merchandise purchased under an agreement meeting the requirements specified in subdivisions (i) and (ii) of this subdivision (F) are capable of delivery at one time.

(G) Solicited or consummated wholly or in part by telephone where the seller offers a full refund and right of cancellation for at least ten days after receipt of the goods or services, and a full refund within 30 days of return of the goods or cancellation of the services or under terms no more restrictive than those set forth in subsections 2454(a), (c), and (d) of this title, and the right of refund and cancellation is conspicuously disclosed with the goods or services.

(H) Solicited or consummated wholly or in part by a federally insured depository institution or its subsidiary, affiliate, or parent organizations, or by a public utility regulated by the Federal Communications Commission or the Vermont Public Utility Commission.

(I) In response to an order placed by a farmer for farm-related goods or services, whether in person, by telephone, or otherwise, and the farmer has a preexisting open end credit plan with the seller.

(5) “Business day” means any calendar day except Saturday, Sunday, or any day classified as a holiday under 1 V.S.A. § 371.

(6) “Purchase price” means the total price paid or to be paid for the consumer goods or services, including all interest and service charges.

(7) “Lessor” means a person engaged in a business of leasing goods to consumers.

(8) “Collusion” means an agreement, contract, combination in the form of trusts or otherwise, or conspiracy to engage in price fixing, bid rigging, or market division or allocation of goods or services between or among persons.

(Added 1973, No. 221 (Adj. Sess.), § 3, eff. June 7, 1974; amended 1985, No. 34, § 1; 1985, No. 61; 1993, No. 99, § 3; 1995, No. 23, § 1; 1997, No. 42, § 1; 2001, No. 42, § 2; 2011, No. 168 (Adj. Sess.), § 3, eff. May 18, 2012; 2021, No. 20, § 16.)

§ 2452 Limitation

(a) Nothing in this chapter shall apply to the owner or publisher of a newspaper, magazine, publication, or printed matter, or to a provider of an interactive computer service, wherein an advertisement or offer to sell appears, or to the owner or operator of a radio or television station that disseminates an advertisement or offer to sell, when the owner, publisher, operator, or provider has no knowledge of the fraudulent intent, design, or purpose of the advertiser or offeror, and is not responsible, in whole or in part, for the creation or development of the advertisement or offer to sell.

(b) In this section, “interactive computer service” has the same meaning as in 47 U.S.C. § 230(f)(2).

(Added 1967, No. 132, § 1, eff. April 17, 1967; amended 2015, No. 55, § 9.)

§ 2453 Practices prohibited; antitrust and consumer protection

(a) Unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce are hereby declared unlawful.

(b) It is the intent of the Legislature that in construing subsection (a) of this section, the courts of this State will be guided by the construction of similar terms contained in Section 5(a)(1) of the Federal Trade Commission Act as from time to time amended by the Federal Trade Commission and the courts of the United States.

(c) The Attorney General shall adopt rules, when necessary and proper to carry out the purposes of this chapter, relating to unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce. The rules shall not be inconsistent with the rules, regulations, and decisions of the Federal Trade Commission and the federal courts interpreting the Federal Trade Commission Act.

(d) Violation of a rule adopted by the Attorney General is prima facie proof of the commission of an unfair or deceptive act in commerce.

(e) The provisions of subsections (a), (c), and (d) of this section shall also be applicable to real estate transactions.

(Added 1967, No. 132, § 1, eff. April 17, 1967; amended 1969, No. 45, § 8, eff. April 4, 1969; 1969, No. 278 (Adj. Sess.); 1973, No. 221 (Adj. Sess.), § 1, eff. June 7, 1974; 1999, No. 65 (Adj. Sess.), § 2; 2011, No. 109 (Adj. Sess.), § 2, eff. May 8, 2012; 2011, No. 136 (Adj. Sess.), § 1a, eff. May 18, 2012; 2017, No. 74, § 13.)

§ 2453a Practices prohibited; criminal antitrust violations

(a) Collusion is hereby declared to be a crime.

(b) Subsection (a) of this section shall not be construed to apply to activities of or arrangements between or among persons that are permitted, authorized, approved, or required by federal or state statutes or regulations.

(c) It is the intent of the General Assembly that in construing this section and subdivision 2451a(8) of this title, the courts of this State shall be guided by the construction of federal antitrust law and the Sherman Act, as amended, as interpreted by the courts of the United States.

(d) Nothing in this section limits the power of the Attorney General or a State’s Attorney to bring civil actions for antitrust violations under section 2453 of this title.

(e) A violation of this section shall be punished by a fine of not more than $100,000.00 for an individual or $1,000,000.00 for any other person or by imprisonment not to exceed five years, or both.

(Added 2011, No. 168 (Adj. Sess.), § 4, eff. May 18, 2012; amended 2021, No. 20, § 17.)

§ 2453b Retaliation prohibited

No person shall retaliate against, coerce, intimidate, threaten, or interfere with any other person who:

(1) has opposed any act or practice of the person that is collusive or in restraint of trade;

(2) has lodged a complaint or has testified, assisted, or participated in any manner with the Attorney General or a State’s Attorney in an investigation of acts or practices that are collusive or in restraint of trade;

(3) is known by the person to be about to lodge a complaint or testify, assist, or participate in any manner in an investigation of acts or practices that are collusive or in restraint of trade; or

(4) is believed by the person to have acted as described in subdivision (1), (2), or (3) of this subsection.

(Added 2011, No. 168 (Adj. Sess.), § 5, eff. May 18, 2012.)

§ 2454 Purchase contracts; rescission

(a) Consumer’s or other obligor’s right to cancel.

(1) Except as provided in subdivision (5) of this subsection, in addition to any right otherwise to revoke an offer, the consumer or any other person obligated for any part of the purchase price may cancel a home solicitation sale until midnight of the third business day after the day on which the consumer has signed an agreement or offer to purchase relating to such sale, or has otherwise agreed to buy consumer goods or services from the seller.

(2) Cancellation occurs when notice of cancellation is given to the seller.

(3) Notice of cancellation, if given by mail, shall be deemed given when deposited in a mailbox properly addressed and postage prepaid.

(4) Notice of cancellation need not take the form prescribed and shall be sufficient if it indicates the intention of the consumer not to be bound.

(5) A home solicitation sale may not be cancelled if the consumer has requested the seller to provide goods or services without delay because of an emergency, and:

(A) the seller in good faith has begun substantial performance of the contract before the notice of cancellation has been given;

(B) in the case of goods, the goods cannot be returned to the seller in substantially the same condition as when received by the consumer; and

(b) Disclosure obligations.

(1) In every home solicitation sale, the seller shall furnish the consumer with a fully completed receipt or copy of any contract pertaining to such sale at the time the consumer signs an agreement or offer to purchase relating to such sale, or otherwise agrees to buy consumer goods or services from the seller. Such receipt or contract copy shall show the date of the transaction and shall contain the name and address of the seller, and in immediate proximity to the space reserved in the contract for the signature of the consumer or on the front page of the receipt if a contract is not used and in boldface type of a minimum size of 10 points, a statement in substantially the following form:

You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation for an explanation of this right.

(2) In a home solicitation sale, unless a consumer requests the seller to provide goods or services without delay in an emergency, the seller shall furnish a notice of cancellation to the consumer at the time he or she signs an agreement or offer to purchase relating to such sale or otherwise agrees to buy consumer goods or services from the seller, which notice shall be attached to the contract or receipt and easily detachable.

(A) The notice of cancellation shall contain the following information and statements, printed in not less than 10-point boldface type:

NOTICE OF CANCELLATION

(enter date of transaction)

.........................................

(date)

You may cancel this transaction, without any penalty or obligation, within three business days from the above date.

If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 business days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.

If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale; or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.

If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice, or send a telegram, to ......................... at .........................................

(name of seller) (address of seller’s place of business)

not later than midnight of .........................................

(date)

I hereby cancel this transaction.

..................................

(date)

.........................................

(buyer’s signature)

(B) Before furnishing copies of the “Notice of Cancellation” to the buyer, the seller shall complete both copies by entering the name of the seller, the address of the seller’s place of business, the date of the transaction, and the date, not earlier than the third business day following the date of the transaction, by which the buyer may give notice of cancellation.

(D) In addition to the written notice of cancellation the seller shall orally inform the buyer of his or her right to cancel at the time of the transaction.

(3) Until the seller has complied with this subsection, the consumer or any other person obligated for any part of the purchase price may cancel the home solicitation sale by notifying the seller in any manner and by any means of his or her intention to cancel. The cancellation period of three business days shall begin to run from the time the seller complies with this subsection.

(1) Within 10 days after a home solicitation sale has been cancelled or an offer to purchase revoked, the seller shall tender to the consumer any payments made by the consumer and any note or other evidence of indebtedness, and take any action necessary or appropriate to terminate promptly any security interest in the transaction, except as provided in subdivision (3) of this subsection.

(2) If payment includes goods traded in, the goods shall be tendered in substantially as good condition as when received by the seller. If the seller fails to tender the goods as provided by this subsection, the consumer may elect to recover an amount equal to the trade-in allowance stated in the agreement.

(3) Until the seller has complied with this subsection, the consumer may retain possession of goods delivered to him or her by the seller and shall have a lien on the goods in his or her possession or control for any recovery to which he or she may be entitled.

(d) Duties of seller and consumer.

(1) Within 10 days after a home solicitation sale has been cancelled or an offer to purchase revoked, the seller shall either demand possession of any goods delivered by the seller pursuant to the sale or instruct the consumer regarding the return shipment of the goods at the seller’s expense and risk.

(2) If the seller does not give instructions regarding the return shipment of the goods, or if the consumer does not comply with any such instructions given, the seller must pick up such goods within 20 days after a home solicitation sale has been cancelled.

(3) If the seller does not act within the time periods established in subdivisions (1) and (2) of this subsection, the goods shall become the property of the consumer without obligation to pay for them.

(4) Upon demand, the consumer shall tender to the seller any goods delivered by the seller pursuant to the sale but need not tender at any place other than his or her residence.

(5) If the consumer agrees to return the goods to the seller and fails to do so, then he or she shall remain liable for performance of all obligations under the contract.

(6) The consumer shall take reasonable care of the goods in his or her possession both before cancellation or revocation and for a reasonable time thereafter, during which time the goods are otherwise at the seller’s risk.

(7) If the seller has performed any services pursuant to a home solicitation sale prior to its cancellation, the seller shall be entitled to no compensation therefor.

(e) If the home solicitation sale is principally negotiated in a language other than English, then all of the disclosures required by this section shall be given in that language.

(f) If the consumer is unable to write in his or her own handwriting, then any of the statements required to be written by him or her under this section shall be handwritten by a member of the consumer’s household at the request of the consumer. If there is no other member of the consumer’s household, then such statements must be written by the seller, at the request of the consumer, and the effect of such statements shall be orally explained to the consumer by the seller.

(g) Use of the cancellation provision provided for in this section shall not prevent any other action being taken under this chapter or otherwise against such seller.

(h) A violation of any of the provisions of this section shall be considered an unfair act in commerce within the meaning of subsection 2453(a) of this title.

(Added 1967, No. 132, § 1, eff. April 17, 1967; amended 1969, No. 45, § 1, eff. April 4, 1969; 1973, No. 110, § 1; 1973, No. 221 (Adj. Sess.), § 2, eff. June 7, 1974.)

§ 2454a Consumer contracts; automatic renewal

(a) A contract between a consumer and a seller or a lessor with an initial term of one year or longer that renews for a subsequent term that is longer than one month shall not renew automatically unless:

(1) the contract states clearly and conspicuously the terms of the automatic renewal provision in plain, unambiguous language in bold-face type;

(2) in addition to accepting the contract, the consumer takes an affirmative action to opt in to the automatic renewal provision; and

(3) if the consumer opts in to the automatic renewal provision, the seller or lessor provides a written or electronic notice to the consumer:

(A) not less than 30 days and not more than 60 days before the earliest of:

(i) the automatic renewal date;

(ii) the termination date; or

(iii) the date by which the consumer must provide notice to cancel the contract; and

(B) that includes:

(i) the date the contract will terminate and a clear statement that the contract will renew automatically unless the consumer cancels the contract on or before the termination date; and

(ii) the length and any additional terms of the renewal period.

(b) A seller or lessor under a contract subject to subsection (a) of this section shall:

(1) provide to the consumer a toll-free telephone number, e-mail address, a postal address if the seller or lessor directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for canceling the contract; and

(2) if the consumer accepted the contract online, permit the consumer to terminate the contract exclusively online, which may include a termination e-mail formatted and provided by the seller or lessor that the consumer can send without additional information.

(c) A person who violates a provision of this section commits an unfair and deceptive act in commerce in violation of section 2453 of this title.

(d) The provisions of this section do not apply to:

(1) a contract between a consumer and a financial institution, as defined in 8 V.S.A. § 11101, or between a consumer and a credit union, as defined in 8 V.S.A. § 30101; or

(2) a contract for insurance, as defined in 8 V.S.A. § 3301a.

(Added 2017, No. 179 (Adj. Sess.), § 1, eff. July 1, 2019; amended 2019, No. 89 (Adj. Sess.), § 6.)

§ 2455 Defenses

The holder of a promissory note or instrument, or other evidence of indebtedness of a consumer delivered in connection with a contract shall take or hold that note, instrument, or evidence subject to all defenses of such consumer that would be available to the consumer in an action on a simple contract, and all rights available to him or her under this chapter.

(Added 1967, No. 132, § 1, eff. April 17, 1967; amended 1969, No. 45, § 2, eff. April 4, 1969.)

§ 2456 Confession of judgment

Any agreement of a consumer in a contract that a power of attorney is given to confess judgment, or an assignment of wages is given, or any agreement of similar effect, is void and of no force and effect on any party.

(Added 1967, No. 132, § 1, eff. April 17, 1967; amended 1969, No. 45, § 3, eff. April 4, 1969.)

§ 2457 Evidence of fraud

The failure to sell any goods or services in the manner and of the nature advertised or offered, or the refusal or inability to sell any goods or services at the price advertised or offered or in accordance with other terms or conditions of the advertisement or offer, creates a rebuttable presumption of an intent to violate the provisions of this chapter. No actual damage to any person need be alleged or proven for an action to lie under this chapter.

(Added 1967, No. 132, § 1, eff. April 17, 1967.)

§ 2458 Restraining prohibited acts

(a) Whenever the Attorney General or a State’s Attorney has reason to believe that any person is using or is about to use any method, act, or practice declared by section 2453 of this title to be unlawful, or has reason to believe that any person has violated any assurance of discontinuance entered into pursuant to section 2459 of this title, and that proceedings would be in the public interest, the Attorney General, or a State’s Attorney if authorized to proceed by the Attorney General, may bring an action in the name of the State against such person to restrain by temporary or permanent injunction the use of such method, act, or practice or to dissolve a domestic corporation or revoke the certificate of authority granted a foreign corporation. The action may be brought in the Superior Court of the county in which such person resides, has a place of business, or is doing business. The courts are authorized to issue temporary or permanent injunctions to restrain and prevent violations of this chapter, such injunctions to be issued without bonds, and so to dissolve, or revoke the certificate of authority of, a corporation.

(b) In addition to the foregoing, the Attorney General or a State’s Attorney may request and the court is authorized to render any other temporary or permanent relief, or both, as may be in the public interest, including:

(1) the imposition of a civil penalty of not more than $10,000.00 for each unfair or deceptive act or practice in commerce and of not more than $100,000.00 for an individual or $1,000,000.00 for any other person for each unfair method of competition in commerce;

(2) an order for restitution of cash or goods on behalf of a consumer or a class of consumers similarly situated;

(3) an order requiring reimbursement to the State of Vermont for the reasonable value of its services and its expenses in investigating and prosecuting the action;

(4) amounts other than consumer restitution recovered by the Attorney General or Department of State’s Attorneys and Sheriffs under this chapter, but not to exceed amounts annually appropriated, or authorized pursuant to 32 V.S.A. § 511, shall be deposited into special funds that shall be available to the Attorney General or Department of State’s Attorneys and Sheriffs, respectively, to offset the costs of providing legal services.

(c) Whenever a State’s Attorney brings an action pursuant to this section, a copy of any pleadings shall be served on the Attorney General pursuant to Rule 5 of the Vermont Rules of Civil Procedure. Failure to comply with this provision shall not affect the validity of the proceedings commenced under this section.

(Added 1967, No. 132, § 1, eff. April 17, 1967; amended 1969, No. 45, § 4, eff. April 4, 1969; 1971, No. 235 (Adj. Sess.), § 1; 1973, No. 110, § 2; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1999, No. 49, § 213; 2009, No. 67 (Adj. Sess.), § 88, eff. Feb. 25, 2010; 2015, No. 128 (Adj. Sess.), § D.1; 2019, No. 154 (Adj. Sess.), § E.200.2, eff. Oct. 2, 2020.)

§ 2459 Assurance of discontinuance

(a) In any case where the Attorney General or a State’s Attorney has authority to institute an action or proceeding under section 2458 of this title, in lieu thereof he or she may accept an assurance of discontinuance of any method, act, or practice in violation of this chapter from any person alleged to be engaged or to have been engaged in such method, act, or practice. Such assurance may include a stipulation for affirmative action by such person, payment of a civil forfeiture and the costs of investigation, or of an amount to be held in escrow pending the outcome of an action or as restitution to aggrieved consumers, or any of the above. Any such assurance of discontinuance shall be in writing and be filed with the Washington Superior Court. Evidence of a violation of such assurance shall be prima facie proof of violation of section 2453 of this title, or of any rule of regulation made pursuant to section 2453 of this title in any action or proceeding thereafter brought by the Attorney General or a State’s Attorney.

(b) No assurance of discontinuance may be accepted by a State’s Attorney without the approval of the Attorney General, who shall indicate his or her approval by countersigning any assurance before it may become effective.

(Added 1967, No. 132, § 1, eff. April 17, 1967; amended 1969, No. 45, § 5, eff. April 4, 1969; 1973, No. 110, § 3; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)

§ 2460 Civil investigation

(a)(1) The Attorney General or a State’s Attorney, whenever he or she has reason to believe any person to be or to have been in violation of section 2453 of this title, or of any rule or regulation made pursuant to section 2453 of this title, may examine or cause to be examined by any agent or representative designated by him or her for that purpose, any books, records, papers, memoranda, and physical objects of whatever nature bearing upon each alleged violation, and may demand written responses under oath to questions bearing upon each alleged violation.

(2) The Attorney General or a State’s Attorney may require the attendance of such person or of any other person having knowledge in the premises in the county where the person resides or has a place of business, or in Washington County if the person is a nonresident or has no place of business, within the State, may take testimony and require proof material for his or her information, and may administer oaths or take acknowledgment in respect of any book, record, paper, or memorandum.

(3) The Attorney General or a State’s Attorney shall serve notice of the time, place, and cause of the examination or attendance, or notice of the cause of the demand for written responses, at least 10 days prior to the date of the examination, personally or by certified mail, upon the person at his or her principal place of business, or, if the place is not known, to his or her last known address.

(4) Any book, record, paper, memorandum, or other information produced by any person pursuant to this section shall not, unless otherwise ordered by a court of this State for good cause shown, be disclosed to any person other than the authorized agent or representative of the Attorney General or a State’s Attorney or another law enforcement officer engaged in legitimate law enforcement activities, unless with the consent of the person producing the same.

(5) This subsection shall not be applicable to any criminal investigation or prosecution brought under the laws of this or any state.

(b)(1) A person upon whom a notice is served pursuant to the provisions of this section shall comply with the terms thereof unless otherwise provided by the order of a court of this State.

(2) Any person who, with intent to avoid, evade, or prevent compliance, in whole or in part, with any civil investigation under this section, removes from any place, conceals, withholds, or destroys, mutilates, alters, or by any other means falsifies any documentary material in the possession, custody, or control of any person subject of any such notice, or mistakes or conceals any information, shall be subject to a civil penalty of not more than $25,000.00 and to recovery by the Attorney General’s or State’s Attorney’s office the reasonable value of its services and expenses in enforcing compliance with this section.

(c)(1) Whenever any person fails to comply with any notice served upon him or her under this section or whenever satisfactory copying or reproduction of material pursuant to this section cannot be done and the person refuses to surrender the material, the Attorney General or a State’s Attorney may file, in the Superior Court in which the person resides or has his or her principal place of business, or in Washington County if the person is a nonresident or has no principal place of business in this State, and serve upon the person, a petition for an order of the court for the enforcement of this section.

(2) Whenever a petition is filed under this section, the court shall have jurisdiction to hear and determine the matter presented and to enter one or more orders as may be required to carry into effect the provisions of this section.

(3) A person who violates an order entered under this section by a court shall be punished for contempt of court and shall be subject to a civil penalty of not more than $25,000.00 and to recovery by the Attorney General’s or State’s Attorney’s office of the reasonable value of its services and expenses in enforcing compliance with this section.

(Added 1967, No. 132, § 1, eff. April 17, 1967; amended 1969, No. 45, § 6, eff. April 4, 1969; 1973, No. 110, § 4; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1997, No. 161 (Adj. Sess.), § 25, eff. Jan. 1, 1998; 2013, No. 44, § 5.)

§ 2461 Civil penalty

(a) Any person who violates the terms of an injunction issued under section 2458 of this title shall forfeit and pay to the State a civil penalty of not more than $10,000.00 for each violation. For the purposes of this section, the court issuing such injunction shall retain jurisdiction, and the cause shall be continued, and in such cases the Attorney General or a State’s Attorney acting in the name of the State may petition for recovery of such civil penalty.

(b) Any consumer who contracts for goods or services in reliance upon false or fraudulent representations or practices prohibited by section 2453 of this title, or who sustains damages or injury as a result of any false or fraudulent representations or practices prohibited by section 2453 of this title, or prohibited by any rule or regulation made pursuant to section 2453 of this title, may sue for appropriate equitable relief and may sue and recover from the seller, solicitor, or other violator the amount of his or her damages, or the consideration or the value of the consideration given by the consumer, reasonable attorney’s fees, and exemplary damages not exceeding three times the value of the consideration given by the consumer. Any language, written or oral, used by a seller or solicitor, that attempts to exclude or modify recovery of the penalty or reasonable attorney’s fees shall be unenforceable.

(c) Any person alleged to have violated the terms of subsection (b) of this section shall be entitled to a trial by jury, unless waived according to law.

(Added 1967, No. 132, § 1, eff. April 17, 1967; amended 1969, No. 45, § 7, eff. April 4, 1969; 1971, No. 235 (Adj. Sess.), § 2; 1973, No. 110, § 5.)

§ 2461a Hearing aid violations

The Attorney General shall investigate alleged irregularities and complaints relating to the fitting and selling of hearing aids, in violation of 18 V.S.A. chapter 90, and rules and regulations promulgated thereunder.

(Added 1975, No. 95, § 2.)

§ 2461b Regulation of propane

(a)(1) In this section:

(A) “Consumer” means any person who, for consumption and not for resale, purchases propane through a meter or has propane delivered to one or more storage tanks of 2,000 gallons or less.

(B) “Seller” means a person who sells or offers to sell propane to a consumer.

(i) disconnects, removes, or locks off that seller’s propane tank;

(ii) reads a meter with the purpose of terminating service; or

(iii) takes other action that evidences an intent to terminate a service relationship with a consumer or evidences knowledge that the consumer requested termination of service.

(2) The Attorney General shall investigate irregularities, complaints, and unfair or deceptive acts in commerce by sellers.

(b) For the purpose of promoting business practices that are uniformly fair to sellers and that protect consumers, the Attorney General shall adopt necessary rules, including notice prior to disconnection, repayment agreements, minimum delivery, discrimination, security deposits, and the assessment of fees and charges.

(c)(1) A violation of this section, or a rule adopted under this section not inconsistent with this section, shall constitute an unfair and deceptive act in commerce in violation of section 2453 of this title.

(2) No contract for propane services shall contain any provision that conflicts with the obligations and remedies established by this section or by any rule adopted under this section, and any conflicting provision shall be unenforceable and void.

(d) A seller shall not:

(1) assess a minimum usage fee;

(2) assess a fee for propane that is not actually delivered to a consumer; or

(3) require a consumer to purchase a minimum number of gallons of propane per year, except as part of a guaranteed price plan that meets the requirements of section 2461e of this title.

(e) When terminating service to a consumer, a seller shall comply with the following requirements:

(1)(A) If the propane storage tank has been located on the consumer’s premises, regardless of ownership of the premises, for 12 months or more, the seller may not assess a fee related to termination of propane service, including a fee:

(i) to remove the seller’s storage tank from the premises;

(ii) to pump out or restock propane; or

(iii) to terminate service.

(B) If a consumer has received propane service from the seller for less than 12 months, any fee related to termination of service may not exceed the disclosed price of labor and materials.

(2) Subject to subdivision (h)(5) of this section:

(A) Within 20 days of the date when the seller terminates service or is notified by the consumer in writing that service has been disconnected, whichever is earlier, the seller shall refund to the consumer the amount paid by the consumer for any propane remaining in the storage tank, less any payments due the seller from the consumer.

(B) If the quantity of propane remaining in the storage tank cannot be determined with certainty, the seller shall, within the 20 days described in subdivision (2)(A) of this subsection, refund to the consumer the amount paid by the consumer for 80 percent of the seller’s best reasonable estimate of the quantity of propane remaining in the tank, less any payments due from the consumer. The seller shall refund the remainder of the amount due as soon as the quantity of propane left in the tank can be determined with certainty, but no later than 14 days after the removal of the tank or restocking of the tank at the time of reconnection.

(3)(A) Any refund to the consumer shall be by cash, check, direct deposit, credit to a credit card account, or in the same method or manner of payment that the consumer, or a third party on the consumer’s behalf, used to make payments to the seller.

(B) Unless requested by the consumer, a seller shall not provide a refund in the form of a reimbursement or credit to any account with the seller.

(4) If the seller fails to mail or deliver a refund to the consumer in accordance with this subsection, the seller shall within one business day make a penalty payment to the consumer, in addition to the refund, of:

(A) $250.00 on the first day after the refund was due; and

(B) $75.00 per day for each day thereafter until the refund and penalty payment have been mailed or delivered, provided that the total amount that accrues under this subdivision (B) shall not exceed 10 times the amount of the refund.

(5) Termination of service does not void any guaranteed price plan that meets the requirements of section 2461e of this title that has not expired by its own terms.

(f)(1) A seller of propane shall not refuse to deliver propane to a storage tank owned by a consumer if the consumer provides proof of ownership of the tank and the seller has conducted a safety check of the tank in accordance with NFPA 54 (National Fuel Gas Code) and NFPA 58 (Storage and Handling of Liquefied Petroleum Gas Code) of the National Fire Protection Association and complies with rules adopted by the Attorney General governing propane.

(2) If a seller of propane chooses to finance a consumer’s purchase of a storage tank, the financing shall be a retail installment sale as provided in chapter 61 of this title.

(g) Nonpayment of the following charges may be the only basis for an interruption or disconnection of service: propane, leak or pressure test, safety check, restart of equipment, after-hours delivery, special trip for delivery, and meter read.

(h)(1) A seller who has a duty to remove a propane storage tank from a consumer’s premises shall remove the tank within 20 days or, in the case of an underground storage tank, within 30 days of the earliest of the following dates:

(A) the date on which the consumer requests termination of service;

(B) the date the seller disconnects propane service; or

(2) Notwithstanding the provisions of subdivision (1) of this subsection, if a consumer requests that a tank be removed on a specific day, the seller shall remove the tank no more than 10 days after the date requested, or within the period required by subdivision (1) of this subsection, whichever is later.

(3) A seller who fails to remove a propane storage tank in accordance with this subsection shall make a penalty payment to the consumer of:

(A) $250.00 on the first day after the tank should have been removed; and

(B) $75.00 per day for each day thereafter until the tank has been removed and the penalty payments have been mailed or delivered, provided that the total amount that accrues under this subdivision (B) shall not exceed $2,000.00.

(4)(A) Notwithstanding subdivision (3) of this subsection, no penalty shall be due for the time a seller is unable to remove a tank due to weather or other conditions not caused by the seller that bar access to the tank, if the seller provides within five days of the latest date the tank was otherwise required to be removed:

(i) a written explanation for the delay;

(ii) what reasonable steps the consumer must take to provide access to the tank; and

(iii) a telephone number, a mailing address, and an e-mail address the consumer can use to notify the seller that the steps have been taken.

(B) The seller shall have 20 days from the date he or she receives the notice from the consumer required in subdivision (4)(A)(iii) of this subsection to remove the tank.

(5) A consumer who prevents access to a propane storage tank, such that a seller is unable to timely remove the tank from the property or determine the amount of propane remaining in the tank in compliance with this section, shall not be entitled to a refund for propane remaining in the storage tank pursuant to subsection (e) of this section until the consumer takes the reasonable steps identified by the seller that are necessary to allow access to the tank and provides notice to the seller that he or she has taken those steps, in compliance with the process established in subdivision (4) of this subsection.

(Added 1985, No. 34, § 2; amended 2011, No. 47, § 19a, eff. May 25, 2011; 2013, No. 44, § 1; 2013, No. 111 (Adj. Sess.), § 1, eff. April 24, 2014; 2015, No. 23, § 90.)

§ 2461c Predatory pricing

(a) No person, with the intent to harm competition, shall price goods or services in a manner that tends to create or maintain a monopoly or otherwise harms competition. A violation of this subsection is deemed to be an unfair method of competition in commerce and a violation of section 2453 of this title.

(b) It is the intent of the General Assembly that in construing subsection (a) of this section, the courts of the State will be guided by similar terms contained in federal anti-trust law as construed by the courts of the United States and as amended by Congress.

(c) The Attorney General shall adopt rules when necessary and proper to carry out the purposes of this section. The rules shall not be inconsistent with the rules, regulations, and decisions of the Federal Trade Commission or with the decisions of the courts of the United States construing federal anti-trust law.

(d) The Attorney General has the same authority to conduct civil investigations and enter into assurances of discontinuance as provided under subchapter 1 of this chapter.

(e) A person aggrieved by a violation of this section or a violation of rules adopted under this section may bring an action in Superior Court for appropriate relief under subsection 2461(b) of this title.

(f) This section shall not be construed to limit rights or remedies available to a person under any other law.

(Added 2005, No. 35, § 1; amended 2017, No. 74, § 14.)

§ 2461d Price gouging of petroleum products and heating fuel products

(a) Definitions For the purposes of this section:

(1) A “market emergency” shall be declared by the Governor. The market emergency shall continue for 30 days or until terminated by the Governor. The Governor may extend the market emergency for additional 30-day periods. “Market emergency” means any abnormal disruption of any market for petroleum products or heating fuel products, including any actual or threatened shortage in the supply of petroleum products or heating fuel products or any actual or threatened increase in the price of petroleum products or heating fuel products resulting from severe weather, convulsion of nature, supply manipulation, failure or shortage of electric power or other source of energy, strike, civil disorder, act of war, terrorist attack, national or local emergency, or other extraordinary adverse circumstances.

(2) “Petroleum or heating fuel product” means motor fuels, liquefied petroleum gas, fuel oil, kerosene, and wood pellets used for heating or cooking purposes.

(3) “Petroleum or heating fuel-related business” means any producer, supplier, wholesaler, distributor, or retail seller of any petroleum or heating fuel product.

(b) It is an unfair and deceptive act and practice in commerce and a violation of section 2453 of this title for any petroleum or heating fuel-related business during a market emergency or seven days prior thereto to sell or offer to sell any petroleum product or heating fuel product for an amount that represents an unconscionably high price.

(1) the amount charged during the market emergency or seven days prior thereto represents a gross disparity between the price of the petroleum product or heating fuel product charged by the petroleum or heating fuel related business and:

(A) the price at which the same product was sold or offered for sale by that business in the usual course of business immediately prior to the date of the declaration of the market emergency; or

(B) the price at which the same or similar petroleum product or heating fuel product is readily obtainable by the buyer and other buyers in the trade area in which the petroleum- or heating-fuel-related business markets the product; and

(2) the disparity is not substantially attributable to increased prices charged by the petroleum product or heating fuel product suppliers or increased costs due to a market emergency.

(Added 2005, No. 210 (Adj. Sess.), § 2.)

§ 2461e Requirements for guaranteed price plans and prepaid contracts

(a) Contract and solicitation requirements.

(1) A contract for the retail sale of home heating oil, kerosene, or liquefied petroleum gas that offers a guaranteed price plan, including a fixed price contract, a prepaid contract, a cost-plus contract, and any other similar terms, shall be in writing, and the terms and conditions of such price plans shall be disclosed. Such disclosure shall be in plain language and shall immediately follow the language concerning the price or service that could be affected and shall be printed in no less than 12-point boldface type of uniform font. A solicitation for the retail sale of home heating oil or liquefied petroleum gas that offers a guaranteed price plan that could become a contract upon a response from a consumer, including a fixed price contract, a prepaid contract, a cost-plus contract, and any other similar terms, shall be in writing, and the terms and conditions of such offer shall be disclosed in plain language.

(2) Subdivision (1) of this subsection does not preclude a first come, first served offering.

(b) Security for prepaid contracts.

(1) No home heating oil, kerosene, or liquefied petroleum gas dealer shall enter into a prepaid contract to provide home heating oil, kerosene, or liquefied petroleum gas to a consumer unless that dealer has, within seven days of the acceptance of the contract, obtained and maintained any one of the following:

(A) Futures contract. Heating oil, kerosene, or liquefied petroleum gas contracts or other similar commitments that allow the dealer to purchase, at a fixed price, heating oil, kerosene, or liquefied petroleum gas in an amount not less than 75 percent of the maximum number of gallons that the dealer is committed to deliver pursuant to all prepaid contracts entered into by the dealer.

(B) Surety bond. A surety bond in an amount not less than 50 percent of the total amount of funds paid to the dealer by consumers pursuant to prepaid heating oil, kerosene, or liquefied petroleum gas contracts.

(C) Line of credit, letter of credit, cash. A line of credit from an FDIC-insured institution, letter of credit from an FDIC-insured institution, cash in an FDIC-insured account or a functionally equivalent account, or combination thereof in an amount that represents 100 percent of the cost to the dealer of the maximum number of gallons that the dealer is committed to deliver pursuant to all prepaid contracts entered into by the dealer. The cost shall be calculated at the time the contracts are entered into.

(2) A dealer shall maintain the amount of futures contracts required by this subsection for the period of time for which the prepaid home heating oil, kerosene, or liquefied petroleum gas contracts are effective, except that the amount of the futures contracts may be reduced during such period of time to reflect any amount of home heating oil, kerosene, or liquefied petroleum gas already delivered to and paid for by the consumer.

(3) Subdivision (1) of this subsection shall not apply to budget plans under which consumers pay 1/12th of their yearly heating fuel cost each month.

(c)(1) Disclosure; additional contract requirements. A prepaid home heating oil, kerosene, or liquefied petroleum gas contract shall indicate:

(A) the amount of funds paid by the consumer to the dealer under the contract;

(B) the maximum number of gallons of home heating oil, kerosene, or liquefied petroleum gas committed by the dealer for delivery to the consumer pursuant to the contract; and

(C) that the performance of the prepaid contract is secured by one of the three options described in subsection (b) of this section.

(2) Reimbursement default provision. Any contract described in this subsection shall provide that the contract price of any undelivered home heating oil, kerosene, or liquefied petroleum gas owed to the consumer under the contract at the end date of the contract shall be reimbursed to the consumer not later than 30 days after the end date of the contract, unless the parties to the contract agree otherwise.

(d) Private right of action under Consumer Protection Act. In addition to the remedies set forth in sections 2458 and 2461 of this title, a home heating oil, kerosene, or liquefied petroleum gas dealer may bring an action against its heating oil, kerosene, or liquefied petroleum gas suppliers for failing to honor its contract with the home heating oil, kerosene, or liquefied petroleum gas dealer. The home heating oil, kerosene, or liquefied petroleum gas dealer bringing the action may recover all remedies available to consumers under subsection 2461(b) of this title.

(Added 2005, No. 210 (Adj. Sess.), § 2; amended 2011, No. 109 (Adj. Sess.), § 2, eff. May 8, 2012; 2011, No. 136 (Adj. Sess.), § 1a, eff. May 18, 2012; 2013, No. 44, § 3.)

§ 2462 Action by State’s Attorney

Any State’s Attorney receiving notice of any alleged violation of this chapter shall immediately forward written notice of the same with any other information he or she may have to the “Office of the Attorney General, Attention Consumer Protection Division.”

(Added 1967, No. 132, § 1, eff. April 17, 1967; amended 1973, No. 110, § 6.)

§ 2463 Credit billing for certain home solicitation sales

In the case of any home solicitation sale solicited or consummated by a seller in whole or in part by telephone that is paid for by means of an open-end consumer credit plan within the meaning of the federal Truth-in-Lending Act, 15 U.S.C. § 1601 et seq., the issuer of the credit card on which the consumer has charged the purchase shall, for one year from the date of the sale, or within any other time period available under applicable network operating rules in effect at the time of the sale, whichever is greater, and for the purpose of a disputed charge and reimbursement to the consumer, be subject to the claim or defense that the seller failed to comply with the disclosure requirements of subsection 2454(b) of this chapter and engaged in a related unfair or deceptive act or practice under subsection 2453(a) of this title, regardless of the amount of the purchase, the location of the seller, or the amount, if any, already paid by the consumer. Where a consumer has raised such a claim or defense, the issuer shall not report any negative information on the purchase to any consumer reporting agency as defined in the Fair Credit Reporting Act, 15 U.S.C. § 1681a(f), unless there is a judicial determination that the consumer’s defense or claim is without merit, except that the issuer may report that there is a dispute with respect to the charge.

(Added 1993, No. 99, § 4; amended 2011, No. 136 (Adj. Sess.), § 3, eff. May 18, 2013.)

§ 2463a Choice of law in computer information agreement

A choice of law provision in a computer information agreement that provides that the contract is to be interpreted pursuant to the laws of a state that has enacted the Uniform Computer Information Transactions Act, as proposed by the National Conference of Commissioners on Uniform State Laws or any substantially similar law, is voidable, and the agreement shall be interpreted pursuant to the laws of this State if the party against whom enforcement of the choice of law provisions is sought is a resident of this State or has its principal place of business located in this State. For purposes of this section, a “computer information agreement” means an agreement that would be governed by the Uniform Computer Information Transactions Act or substantially similar law as enacted in the state specified in the choice of law provisions if that state’s law were applied to the agreement. This section may not be varied by agreement of the parties. This section shall remain in force until such time as the General Assembly enacts the Uniform Computer Information Transactions Act or any substantially similar law and that law becomes effective.

(Added 2003, No. 44, § 2, eff. Jan. 1, 2004.)

§ 2464 Telemarketing transactions

(a) For the purposes of this section:

(1) “Express oral authorization” means that a consumer has explicitly authorized an electronic funds transfer from his or her financial account for goods or services offered by a telemarketer:

(A) during a telephone call in which the telemarketer has clearly stated that the consumer is authorizing the transfer from his or her account and has further stated the consumer’s name, a description of the specific goods or services offered, any material terms of the transaction, the date on or after which the account will be debited, the amount of the transfer, a telephone number for consumer inquiries that is answered during normal business hours, and the date of the authorization; and

(B) where the telemarketer has either tape-recorded the entire telemarketing call on which the consumer has authorized the transaction and not disposed of the recording until at least four years after the authorization or has provided written notice to the consumer, prior to the settlement date of the transfer, confirming the terms of the authorization as described in subdivision (A) of this subdivision (1) and has not disposed of the written notice until at least four years after the notice was created. Isolated and inadvertent failure to comply with this record-keeping requirement shall not give rise to liability under this subsection, provided that the telemarketer has in place reasonable procedures designed to comply with this requirement.

(2) “Financial account” means a checking, savings, share, or other depository account.

(3) “Process” includes printing a check, draft, or other form of negotiable instrument drawn on or debited against a consumer’s financial account, formatting or transferring data for use in connection with the debiting of a consumer’s account by means of such an instrument or an electronic funds transfer, or arranging for such services to be provided to a telemarketer.

(4) “Telemarketer” means any person who initiates telephone calls to, or who receives telephone calls from, a consumer in connection with a plan, program, or campaign to market goods or services. The term “telemarketer” does not include:

(A) a federally insured depository institution or its subsidiary when it obtains or submits for payment a check, draft, or other form of negotiable instrument drawn on or debited against a person’s checking, savings, share, or other depository account at that institution;

(B) any person that submits a payment when the consumer authorizing the submission has, prior to July 1, 1997, entered into a written contract with the person for the issuance of a charge or credit card;

(C) any person who initiates telephone calls to or who receives telephone calls from a consumer in connection with collection of an amount due for goods or services previously provided to the consumer;

(D) any company registered with and regulated by the Public Utility Commission;

(E) any other category of persons that the Attorney General may exempt by rule consistent with the purposes of this section.

(b) It is an unfair and deceptive act and practice in commerce for any telemarketer directly or through an agent:

(1) to procure the services of any third-party delivery, courier, or other pickup service to obtain a consumer’s payment for goods, unless the goods are delivered at the time that the consumer’s payment is obtained by the courier;

(2) to obtain or submit for payment a check, draft, or other form of negotiable instrument drawn on a person’s financial account without the consumer’s prior written authorization or to dispose of the written authorization until at least four years after the authorization; or

(3) to obtain funds from a person’s financial account by means of an electronic funds transfer unless:

(A)(i) the consumer has initiated the telephone call to the telemarketer; or

(ii) the telemarketer and the consumer have a current written agreement for the provision of goods or services or the consumer has purchased goods or services from the telemarketer within the previous two years; and

(B) the telemarketer has obtained the consumer’s express oral authorization to the transfer prior to initiating the debit.

(c) It is an unfair and deceptive act and practice in commerce for a party other than a federally insured depository institution to process for payment from a consumer’s financial account, in connection with a telemarketer’s transaction with the consumer:

(1) a check, draft, or other form of negotiable instrument drawn on or debited against such account without the consumer’s prior written authorization; or

(2) an electronic funds transfer from such account for goods or services offered by a telemarketer, unless:

(A)(i) the consumer has initiated the telephone call to the telemarketer; or

(B) the telemarketer has obtained the consumer’s express oral authorization to the transfer prior to initiating the debit.

(d) In addition to the legal liability described in subsection (c) of this section, it is an unfair and deceptive act and practice in commerce for any person, including a third-party delivery, courier, or other pickup service, or the telemarketer’s financial institution as defined in 8 V.S.A. § 10202(5), but not including the consumer’s financial institution as defined in 8 V.S.A. § 10202(5), to provide substantial assistance to a telemarketer in violation of subsection (b) of this section when the person or the person’s authorized agent knows or consciously avoids knowing that the telemarketer is engaging in an unfair or deceptive act or practice in commerce.

(e) It is an unfair and deceptive act and practice in commerce for a party other than a federally insured depository institution who processes a telemarketing transaction for payment from a consumer’s financial account to:

(1) fail to obtain, before processing the transaction, any prior written authorization required by subdivision (b)(2) of this section or any tape recording or copy of a written confirmation required by subdivision (b)(3) of this section as part of the consumer’s express oral authorization; or

(2) dispose of a document required by subdivision (1) of this subsection, or of telemarketer applications or agreements, records of payments processed or returned, electronic communications relating to telemarketers, consumer complaints, or any other category of record that the Attorney General may prescribe by rule, until at least four years after the records were created.

(Added 1997, No. 42, § 2; amended 2005, No. 5, § 1; 2007, No. 134 (Adj. Sess.), §§ 2-5.)

§ 2464a Prohibited telephone solicitations

(a) Definitions. As used in this section, section 2464b, and section 2464c of this title:

(1) “Customer” means a customer, residing or located in Vermont, of a company providing telecommunications service as defined in 30 V.S.A. § 203(5).

(2) “Caller identification information” means information a caller identification service provides regarding the name and number of the person calling.

(3) “Caller identification service” means a service that allows a subscriber of the service to have the telephone number and, where available, the name of the calling party transmitted contemporaneously with the telephone call and displayed on a device in or connected to the subscriber’s telephone.

(4) “Federal functional regulator” means a federal functional regulator as defined in 15 U.S.C. § 6809(2).

(5) “Financial institution” means a financial institution as defined in 15 U.S.C. § 6809(3).

(6) “Tax-exempt organization” means an organization described in Section 501(c) of the Internal Revenue Service Code (26 U.S.C. § 501(c)).

(7) “Telemarketer” means any telephone solicitor. However, “telemarketer” does not include any telephone solicitor who is otherwise registered or licensed with, or regulated or chartered by, the Secretary of State, the Public Utility Commission, the Department of Financial Regulation, or the Department of Taxes or is a financial institution subject to regulations adopted pursuant to 15 U.S.C. § 6804(a) by a federal functional regulator. Telephone solicitors registered with the Department of Taxes to collect Vermont income withholding, sales and use, or meals and rooms tax, but not registered with any other agency listed in this subdivision, shall provide to the Secretary of State an address and agent for the purpose of submitting to the jurisdiction of the Vermont courts in any action brought for violations of this section.

(8) “Telephone solicitation”:

(A) means the solicitation by telephone of a customer for the purpose of encouraging the customer to contribute to an organization that is not a tax-exempt organization, or to purchase, lease, or otherwise agree to pay consideration for money, goods, or services; and

(B) does not include:

(i) telephone calls made in response to a request or inquiry by the called customer;

(ii) telephone calls made by or on behalf of a tax-exempt organization, an organization incorporated as a nonprofit organization with the State of Vermont, or an organization in the process of applying for tax-exempt status or nonprofit status;

(iii) telephone calls made by a person not regularly engaged in the activities listed in subdivision (A) of this subdivision (8); or

(iv) telephone calls made to a person with whom the telephone solicitor has an established business relationship.

(9) “Telephone solicitor” means any person placing telephone solicitations, or hiring others, on an hourly, commission, or independent contractor basis to conduct telephone solicitations.

(b) Prohibition; Caller Identification Information.

(1) No telemarketer shall make a telephone solicitation to a telephone number in Vermont without having first registered in accordance with section 2464b of this title.

(2) No person shall make any telephone call to a telephone number in Vermont that violates the Federal Trade Commission’s Do Not Call Rule, 16 C.F.R. subdivision 310.4(b)(1)(iii), or the Federal Communication Commission’s Do Not Call Rule, 47 C.F.R. subdivision 64.1200(c)(2) and subsection (d), as amended from time to time.

(3)(A) A person who places a telephone call to make a telephone solicitation or to induce a charitable contribution, donation, or gift of money or other thing of value shall transmit or cause to be transmitted to a caller identification service in use by the recipient of the call:

(i) the caller’s telephone number; and

(ii) if made available by the caller’s carrier, the caller’s name.

(B) Notwithstanding subdivision (A) of this subdivision (3), a caller may substitute for its own name and number the name and the number, which is answered during regular business hours, of the person on whose behalf the caller places the call.

(c) Violation. A violation of this section shall constitute a violation of section 2453 of this title. Each prohibited telephone call shall constitute a separate violation. In considering a civil penalty for violations of subdivision (b)(2) of this section, the court may consider, among other relevant factors, the extent to which a telephone solicitor maintained and complied with procedures designed to ensure compliance with the rules of the Federal Communications Commission and the Federal Trade Commission.

(d) Criminal Penalties. A telemarketer who makes a telephone solicitation in violation of subdivision (b)(1) of this section shall be imprisoned for not more than 18 months or fined not more than $10,000.00, or both. It shall be an affirmative defense, for a telemarketer with five or fewer employees, that the telemarketer did not know and did not consciously avoid knowing that Vermont has a requirement of registration of telemarketers. Each telephone call shall constitute a separate solicitation under this section. This section shall not be construed to limit a person’s liability under any other civil or criminal law.

(Added 2001, No. 120 (Adj. Sess.), § 1; amended 2003, No. 89 (Adj. Sess.), § 1, eff. April 7, 2004; 2017, No. 66, § 1, eff. June 8, 2017.)

§ 2464b Registration of telemarketers

(a) Every telemarketer shall register with the Secretary of State, on a form approved by the Secretary. In the case of a telemarketer who hires, whether on an hourly, commission, or independent contractor basis, one or more persons to conduct telephone solicitations, only the person who causes others to conduct telephone solicitations need register. The Secretary of State may adopt rules prescribing the manner in which registration under this section shall be conducted, including a requirement of notice to the Secretary by the telemarketer when the telemarketer ceases to do business in Vermont.

(b) The Secretary of State shall require that each telemarketer designate an agent for the purpose of submitting to the jurisdiction of the Vermont courts in any action brought for violations of section 2464a of this title.

(c) The Secretary of State shall collect the following fees when a document described in this section is delivered to the Office of the Secretary of State for filing:

(1) Registration: $125.00.

(2) Statement of change of designated agent or designated office, or both: $25.00, not to exceed $1,000.00 per filer per calendar year.

(Added 2001, No. 120 (Adj. Sess.), § 2; amended 2013, No. 72, § 2.)

§ 2464c Private cause of action

Any person who receives a telephone call in violation of subsection 2464a(b) of this title may bring an action in Superior Court for damages, injunctive relief, punitive damages in the case of a willful violation, and reasonable costs and attorney’s fees. The court may issue an award for the person’s actual damages or $500.00 for a first violation, or $1,000.00 for each subsequent violation, whichever is greater. In considering the amount of punitive damages, the court may consider, among other relevant factors, the extent to which a telephone solicitor maintained and complied with procedures designed to ensure compliance with the requirements of sections 2464a and 2464b of this title. This section shall not limit any other claims the person may have under applicable law.

(Added 2001, No. 120 (Adj. Sess.), § 3; amended 2003, No. 89 (Adj. Sess.), § 2, eff. April 7, 2004; 2017, No. 66, § 1, eff. June 8, 2017.)

§ 2464d Telephone preference service

Local exchange carriers shall provide notices at least annually to residential customers of the availability of telephone callers’ do not call lists under federal law and of the federal Do Not Call Registry, and a description of how to register.

(Added 2001, No. 120 (Adj. Sess.), § 4; amended 2003, No. 89 (Adj. Sess.), § 3, eff. April 7, 2004.)

§ 2464e Robocalls; prohibition; penalty

(a) Intent. It is the intent of the General Assembly in adopting this section to create State law prohibition on the placement of robocalls to Vermont consumers that is coextensive with the federal limitations created in the Telephone Consumer Protection Act, the Telemarketing and Consumer Fraud and Abuse Prevention Act, the regulations adopted under those Acts, and the judicial construction of these laws.

(b) Prohibition. A person shall not initiate an automatically dialed or prerecorded telephone call to a Vermont consumer in violation of the federal Telephone Consumer Protection Act, 47 U.S.C. § 227; the federal Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101–6108; and the regulations adopted pursuant to those Acts, as amended.

(1) A violation of this section constitutes a violation of section 2453 of this title.

(2) Each prohibited telephone call constitutes a separate violation under this subsection.

(3)(A) A person who receives a telephone call in violation of this section may bring an action in Superior Court for damages or a civil penalty, injunctive relief, punitive damages in the case of a willful violation, and reasonable costs and attorney’s fees.

(B) The court may issue an award for the greater of a person’s damages or a civil penalty of $500.00 for a first violation and $1,000.00 for each subsequent violation.

(d) Criminal penalties.

(1) A person who commits a knowing and willful violation of this section shall be imprisoned for not more than 90 days or fined not more than $1,000.00 per violation, or both.

(2) Each telephone call constitutes a separate violation under this subsection.

(e) The Attorney General shall exercise his or her authority and discretion to work cooperatively with other state and federal government entities to identify callers who initiate robocalls to consumers in violation of this section and to enforce the provisions of this section regardless of the location of the caller.

(Added 2021, No. 183 (Adj. Sess.), § 57, eff. July 1, 2023.)

§ 2465 Antitrust remedies

(a) Any person who sustains damages or injury as a result of any violation of State antitrust laws, including section 2453 of this title, may sue and recover from the violator the amount of his or her damages, or the consideration or the value of the consideration given by the aggrieved person, reasonable attorney’s fees, and exemplary damages, not exceeding three times the value of the consideration given or damages sustained by the aggrieved person.

(b) In any action for damages or injury sustained as a result of any violation of State antitrust laws, pursuant to section 2453 of this title, the fact that the State, any public agency, political subdivision, or any other person has not dealt directly with a defendant shall not bar or otherwise limit recovery. The court shall take all necessary steps to avoid duplicate liability, including the transfer or consolidation of all related actions.

(Added 1999, No. 65 (Adj. Sess.), § 3.)

§ 2465a Definition of local, local to Vermont, and locally grown or made in Vermont

(a) As used in this section:

(1) “Eggs” means eggs that are the product of laying birds, including chickens, turkeys, ducks, geese, or quail, and that are in the shell.

(2) “Majority of ingredients” means more than 50 percent of all product ingredients by volume, excluding water.

(3) “Processed food” means any food other than a raw agricultural product and includes a raw agricultural product that has been subject to processing, such as canning, cooking, dehydrating, milling, or the addition of other ingredients. Processed food includes dairy, meat, maple products, beverages, fruit, or vegetables that have been subject to processing, baked, or modified into a value-added or unique food product.

(4) “Raw agricultural product” means any food in its raw or natural state without added ingredients, including pasteurized or homogenized milk, maple sap or syrup, honey, meat, eggs, apple cider, and fruits or vegetables that may be washed, colored, or otherwise treated in their unpeeled natural form prior to marketing.

(5) “Substantial period of its life” means an animal that was harvested in Vermont and lived in Vermont for at least one third of its life or one year.

(6) “Unique food product” means food processed in Vermont from ingredients that are not regularly produced in Vermont or not available in sufficient quantities to meet production requirements.

(b) For the purposes of this chapter and rules adopted pursuant to subsection 2453(c) of this chapter, “local,” “local to Vermont,” “locally grown or made in Vermont,” and any substantially similar term shall have the following meaning based on the type of food or food product:

(1) For products that are raw agricultural products, “local to Vermont” means the product:

(A) was exclusively grown or tapped in Vermont;

(B) is not milk and was derived from an animal that was raised for a substantial period of its lifetime in Vermont;

(D) is honey produced by Vermont colonies located exclusively in Vermont when all nectar was collected.

(2) Except as provided in subdivision (3) of this subsection, for products that are processed foods, “local to Vermont” means:

(A) the majority of the ingredients are raw agricultural products that are local to Vermont; and

(B) the product meets one or both or the following criteria:

(i) the product was processed in Vermont; or

(ii) the headquarters of the company that manufactures the product is located in Vermont.

(3) For bakery products, beverages, or unique food products, the product meets two or more of the following criteria:

(A) the majority of the ingredients are raw agricultural products that are local to Vermont;

(B) substantial transformation of the ingredients in the product occurred in Vermont; or

(c) For the purposes of this chapter and rules adopted pursuant to subsection 2453(c) of this chapter, when referring to products other than food, “local” and any substantially similar term shall mean that the goods being advertised originated within Vermont.

(d) For the purposes of this chapter and rules adopted under subsection 2453(c) of this title, “local,” “locally grown or made,” and substantially similar terms may be used in conjunction with a specific geographic location provided that the specific geographic location appears as prominently as the term “local” and the representation of origin is accurate. If a local representation refers to a specific city or town, the product shall have been grown or made in that city or town. If a local representation refers to a region with precisely defined political boundaries, the product shall have been grown or made within those boundaries. If a local representation refers to a region that is not precisely defined by political boundaries, then the region shall be prominently described when the representation is made, or the product shall have been grown or made within 30 miles of the point of sale, measured directly point to point.

(e) A person or company who sells or markets food or goods impacted by a change in this section shall have until January 1, 2021 to utilize existing product labels or packaging materials and to come into compliance with the requirements of this section.

(Added 2007, No. 207 (Adj. Sess.), § 6, eff. June 11, 2008; amended 2019, No. 129 (Adj. Sess.), § 17.)

§ 2465b Misrepresentation of a floral business as local

(a) In connection with the sale of floral products, it shall be an unlawful and deceptive act and practice in commerce in violation of section 2453 of this title for a floral business to misrepresent in an advertisement, on the Internet, on a website, or in a listing of the floral business in a telephone directory or other directory assistance database the geographic location of the floral business as “local,” “locally owned,” or physically located within Vermont.

(b) A floral business is considered to misrepresent its geographic location that it is “local,” “locally owned,” or located within Vermont in violation of subsection (a) of this section if the floral business is not physically located in Vermont and:

(1) the advertisement, Internet, website, or directory listing would lead a reasonable consumer to conclude that the floral business is physically located in Vermont; or

(2) the advertisement, Internet, website, or directory listing uses the name of a floral business that is physically located in Vermont, with geographic terms that would lead a reasonable consumer to understand the advertised floral business to be physically located in Vermont.

(c) A retail floral business physically located in Vermont shall be deemed a consumer for the purposes of enforcing this section under subsection 2461(b) of this chapter.

(Added 2011, No. 52, § 45, eff. May 27, 2011.)

§ 2466 Goods and services appearing on telephone bill

(a) Except as provided in subsection (f) of this section, a seller shall not bill a consumer for goods or services that will appear as a charge on the person’s bill for telephone service provided by any local exchange carrier.

(b) No person shall arrange on behalf of a seller of goods or services, directly or through an intermediary, with a local exchange carrier, to bill a consumer for goods or services other than as permitted by this section. This prohibition applies, but is not limited, to persons who aggregate consumer billings for a seller and to persons who serve as a clearinghouse for aggregated billings.

(d) The Attorney General may make rules and regulations to carry out the purposes of this section.

(e) Nothing in this section limits the liability of any person under existing statutory or common law.

(f)(1) This section shall apply to billing aggregators described in 30 V.S.A. § 231a, but shall not apply to:

(A) billing for goods or services marketed or sold by persons subject to the jurisdiction of the Vermont Public Utility Commission under 30 V.S.A. § 203;

(B) billing for direct dial or dial around services initiated from the consumer’s telephone; or

(C) operator-assisted telephone calls, collect calls, or telephone services provided to facilitate communication to or from correctional center inmates.

(2) Nothing in this section affects any rule issued by the Vermont Public Utility Commission.

(Added 1999, No. 67 (Adj. Sess.), § 5; amended 2011, No. 52, § 78, eff. May 27, 2011.)

§ 2466a Consumer protections; prescription drugs

(a) A violation of 18 V.S.A. § 4631 shall be considered a prohibited practice under section 2453 of this title.

(b) As provided in 18 V.S.A. § 9474, a violation of 18 V.S.A. § 9472 or 9473 shall be considered a prohibited practice under section 2453 of this title.

(c)(1) It shall be a prohibited practice under section 2453 of this title for a manufacturer of prescription drugs to present or cause to be presented in the State a regulated advertisement if that advertisement does not comply with the requirements concerning drugs and devices and prescription drug advertising in federal law and regulations under 21 U.S.C. §§ 331 and 352(n) and 21 C.F.R. Part 202.

(2) For purposes of this section:

(A) “Manufacturer of prescription drugs” means a person authorized by law to manufacture, bottle, or pack drugs or biological products; a licensee or affiliate of that person; or a labeler that receives drugs or biological products from a manufacturer or wholesaler and repackages them for later retail sale and has a labeler code from the federal Food and Drug Administration under 21 C.F.R. § 202.20.

(B) “Regulated advertisement” means:

(i) the presentation to the general public of a commercial message regarding a prescription drug or biological product by a manufacturer of prescription drugs that is broadcast on television, cable, or radio from a station or cable company that is physically located in the State, broadcast over the Internet from a location in the State, or printed in magazines or newspapers that are printed, distributed, or sold in the State; or

(ii) a commercial message regarding a prescription drug or biological product by a manufacturer of prescription drugs or its representative that is conveyed:

(I) to the office of a health care professional doing business in Vermont, including statements by representatives or employees of the manufacturer and materials mailed or delivered to the office; or

(II) at a conference or other professional meeting occurring in Vermont.

(d) No person shall sell, offer for sale, or distribute electronic prescribing software that advertises, uses instant messaging and pop-up advertisements, or uses other means to influence or attempt to influence the prescribing decision of a health care professional through economic incentives or otherwise and that is triggered or in specific response to the input, selection, or act of a health care professional or agent in prescribing a specific prescription drug or directing a patient to a certain pharmacy. This subsection shall not apply to information provided to the health care professional about pharmacy reimbursement, prescription drug formulary compliance, and patient care management.

(Added 2007, No. 80, § 21; amended 2007, No. 89 (Adj. Sess.), § 5, eff. March 5, 2008; 2013, No. 144 (Adj. Sess.), § 15; 2015, No. 23, § 42.)

§ 2466b Disclosure of fee for automatic dialing service

(a) In this section:

(1) “Automatic dialing service” means a service of a home or business security, monitoring, alarm, or similar system, by which the system automatically initiates a call or connection to an emergency service provider, either directly or through a third person, upon the occurrence of an action specified within the system to initiate a call or connection.

(2) “Emergency functions” include services provided by the Department of Public Safety, firefighting services, police services, sheriff’s department services, medical and health services, rescue, engineering, emergency warning services, communications, evacuation of persons, emergency welfare services, protection of critical infrastructure, emergency transportation, temporary restoration of public utility services, other functions related to civilian protection, and all other activities necessary or incidental to the preparation for and carrying out of these functions.

(3) “Emergency service provider” means a person that performs emergency functions.

(b) Before executing a contract for the sale or lease of a security, monitoring, alarm, or similar system that includes an automatic dialing service, the seller or lessor of the system shall disclose in writing:

(1) any fee or charge the seller or lessor charges to the buyer or lessee for the service; and

(2) that the buyer or lessor may be subject to additional fees or charges imposed by another person for use of the service.

(c) A person who fails to provide the disclosure required by subsection (b) of this section commits an unfair and deceptive act in commerce in violation of section 2453 of this title.

(Added 2015, No. 55, § 4.)

§ 2466c Internet service; network management; Attorney General review and disclosure

(a) The Attorney General shall review the network management practices of Internet service providers in Vermont and, to the extent possible, make a determination as to whether the provider’s broadband Internet access service complies with the open Internet rules contained in the Federal Communications Commission’s 2015 Open Internet Order, “Protecting and Promoting the Open Internet,” WC Docket No. 14-28, Report and Order on Remand, Declaratory Ruling and Order, 30 FCC Rcd 5601.

(b) The Attorney General shall disclose his or her findings under this section on a publicly available, easily accessible website maintained by his or her office.

(Added 2017, No. 169 (Adj. Sess.), § 8.)

§ 2466d Reporting of medical debt information prohibited

(a) A credit reporting agency shall not report or maintain in the file on a consumer information relating to a medical debt.

(b) As used in this section:

(1) “Health care services” means all supplies, care, and services of a medical, dental, behavioral health, mental health, substance use disorder treatment, surgical, psychiatric, therapeutic, diagnostic, preventative, rehabilitative, or supportive nature, including medication.

(2) “Medical debt” means debt arising from health care services, including dental services, or from health care goods, including products, devices, durable medical equipment, and prescription drugs. “Medical debt” does not include debt arising from services provided by a veterinarian, debt charged to a credit card unless the credit card is issued under an open-end or closed-end credit plan offered solely for the payment of health care services, debt charged to a home equity or general-purpose line of credit, or secured debt.

(Added 2025, No. 21, § 4, eff. July 1, 2025.)

Subchapter 1A Assistive Technology

§ 2467 Definitions

As used in this subchapter:

(1) “Assistive device” means an item, piece of equipment, or product system, whether acquired commercially off-the-shelf, modified, or customized, that is used or designed to be used to increase, maintain, or improve any functional capability of an individual with disabilities. An assistive device system, that as a whole is within the definition of this term, is itself an assistive device, and, in such cases, this term also applies to each component product of the assistive device system that is itself ordinarily an assistive device. For this section only and no other purposes, this term is limited to:

(A) wheelchairs and scooters of any kind, including all their assistive devices and components that enhance the mobility or positioning of an individual, such as motorization, motorized positioning features, and the switches and controls for any motorized features; and

(2) “Assistive device dealer” means a person who is in the business of selling assistive devices to consumers.

(3) “Assistive device lessor” means a person who leases an assistive device to a consumer, or who holds the lessor’s rights, under a written lease.

(4) “Collateral costs” means expenses incurred by a consumer in connection with the repair of a nonconformity, including the costs of obtaining an alternative assistive device.

(5) “Consumer” means any of the following:

(A) the purchaser of an assistive device, if the assistive device was purchased from an assistive device dealer or manufacturer for purposes other than resale;

(B) a person to whom the assistive device is transferred for purposes other than resale, if the transfer occurs before the expiration of an express warranty applicable to the assistive device;

(D) a person who leases an assistive device from an assistive device lessor under a written lease.

(6) “Demonstrator” means an assistive device used primarily for the purpose of demonstration and tryout to the public.

(7) “Early termination cost” means any expense or obligation that an assistive device lessor incurs as a result of both the termination of a written lease before the termination date set forth in that lease and the return of an assistive device to a manufacturer pursuant to this section. Early termination cost includes a penalty for prepayment under a finance arrangement.

(8) “Early termination saving” means any expense or obligation that an assistive device lessor avoids as a result of both the termination of a written lease before that termination date set forth in that lease and the return of an assistive device to a manufacturer pursuant to this section. Early termination saving includes an interest charge that the assistive device lessor would have paid to finance the assistive device or, if the assistive device lessor does not finance the assistive device, the difference between the total amount for which the lease obligates the consumer during the period of the lease term remaining after the early termination and the present value of that amount at the date of the early termination.

(9) “Loaner” means an assistive technology device that is loaned to the user without charge while repairs are made to the user’s assistive technology device.

(10) “Manufacturer” means a person who manufactures or assembles assistive devices and agents of that person, including an importer, a distributor, factory branch, distributor branch, and any warrantors of the manufacturer’s assistive device, but does not include an assistive device dealer.

(11) “Nonconformity” means a condition or defect that substantially impairs the use, value, or safety of an assistive device and that is covered by an express warranty applicable to the assistive device or to a component of the assistive device, but does not include a condition or defect that is the result of abuse, use that exceeds the manufacturer’s recommendations, neglect, or unauthorized modification or alteration of the assistive device by a consumer.

(12) “Reasonable attempt to repair” means, within the terms of an express warranty applicable to a new assistive device:

(A) any nonconformity within the warranty that is either subject to repair by the manufacturer, assistive device lessor, or any of the manufacturer’s authorized assistive device dealers, for at least three times and a nonconformity continues; or

(B) the assistive device is out of service for an aggregate of at least 30 cumulative days because of warranty nonconformity.

(Added 1999, No. 104 (Adj. Sess.), § 1.)

§ 2468 Warranty

(a) A manufacturer who sells or leases an assistive device, only of the types listed in subdivisions 2467(1)(A) and (B) of this title, to a consumer, either directly or through an assistive device dealer, shall furnish the consumer with an express warranty for the assistive device. By the terms of or in the absence of an express warranty from the manufacturer, the manufacturer shall be deemed to have expressly warranted to the consumer of an assistive device, only as defined in subdivisions 2467(1)(A) and (B) of this title, that, for a period of at least one year from the date of first delivery to the consumer, the assistive device:

(1) has no defects in parts or performance; and

(2) is free from any condition and defect that would substantially impair the device’s use, value, or safety to the consumer.

(b) The manufacturer, through the assistive device lessor or assistive device dealer, shall provide the consumer with a loaner if the assistive device, listed in subdivisions 2467(1)(A) and (B) of this title, has any condition or defect that would substantially impair the device’s use, value, or safety to the consumer and that cannot be remedied within one business day.

(c) If a new assistive device listed in subdivisions 2467(1)(A) and (B) of this title does not conform to an applicable express warranty and the consumer reports the nonconformity to the manufacturer, the assistive device lessor, or any of the manufacturer’s authorized assistive device dealers, and makes the assistive device available for repair before one year after return delivery of the assistive device to the consumer, the nonconformity shall be repaired at no charge to the consumer, including parts, labor, shipping, delivery, and all other costs.

(d) If, after a reasonable attempt to repair, the nonconformity is not repaired, then at the direction of a consumer described in subdivisions 2467(5)(A), (B) or (C) of this title, the manufacturer shall do one of the following:

(1) Accept return of the assistive device and replace the assistive device with a comparable new assistive device and refund any collateral costs.

(2) Accept return of the assistive device and refund to the consumer and to any holder of a perfected security interest in the consumer’s assistive device, as their interest may appear, the full purchase price plus any finance charge amount paid by the consumer at the point of sale and collateral costs, less a reasonable allowance for use. A reasonable allowance for use may not exceed the amount obtained by multiplying the full purchase price of the assistive device by a fraction, the denominator of which is 1,825 and the numerator of which is the number of days that the assistive device was used before the consumer first reported the nonconformity to the assistive device dealer.

(3) With respect to a consumer described in subdivision 2467(5)(D) of this title, accept return of the assistive device, refund to the assistive device lessor and to any holder of a perfected security interest in the assistive device, as their interest may appear, the current value of the written lease and refund to the consumer the amount that the consumer paid under the written lease, plus any collateral costs, less a reasonable allowance for use.

(e) The current value of the written lease equals the total amount for which that lease obligates the consumer during the period of the lease remaining after its early termination, plus the assistive device dealer’s early termination costs and the value of the assistive device at the lease expiration date if the lease sets forth that value, less the assistive device lessor’s early termination savings.

(f) A reasonable allowance for use may not exceed the amount obtained by multiplying the total amount for which the written lease obligates the consumer by a fraction, the denominator of which is 1,825 and the numerator of which is a number of days that the consumer used the assistive device before first reporting the nonconformity to the manufacturer, assistive device lessor or assistive device dealer.

(g) None of the requirements of this subchapter shall be construed to diminish existing assistive device warranties.

(Added 1999, No. 104 (Adj. Sess.), § 1; amended 2021, No. 20, § 18.)

§ 2469 Loaners

A loaner must:

(1) be in good working order;

(2) perform the essential functions of the assistive technology device that is being repaired, considering the needs of the user;

(3) not create a threat to the safety of the user; and

(4) be provided to the consumer by the manufacturer through the assistive device dealer within two business days after notice from the consumer of the nonconformity, except in the case of an assistive device that requires extensive custom retrofit in order to perform the essential functions. Such a custom device shall be provided as soon as reasonably possible, but in no case later than 10 business days after notice.

(Added 1999, No. 104 (Adj. Sess.), § 1.)

§ 2470 Remedies

(a) To receive a comparable new assistive device or a refund due under subsection 2468(d) of this title, a consumer shall offer to the manufacturer of the assistive device having the nonconformity to transfer possession of that assistive device to that manufacturer. No later than 30 days after that offer, the manufacturer shall provide the consumer with the comparable assistive device or refund. When the manufacturer provides the new assistive device or refund, the consumer shall return the assistive device having the nonconformity to the manufacturer, along with any endorsements necessary to transfer real possession to the manufacturer.

(b) To receive a refund due under subsection 2468(d) of this title, a consumer described in subdivision 2467(5)(D) of this title shall offer to return the assistive device having the nonconformity to its manufacturer. No later than 30 days after that offer, the manufacturer shall provide the refund to the consumer. When the manufacturer provides the refund, the consumer shall return to the manufacturer the assistive device having the nonconformity.

(c) To receive a refund due under subsection 2468(d) of this title, an assistive device lessor shall offer to transfer possession of the assistive device having the nonconformity to its manufacturer. No later than 30 days after that offer, the manufacturer shall provide the refund to the assistive device lessor. When the manufacturer provides the refund, the assistive device lessor shall provide to the manufacturer any endorsements necessary to transfer legal possession to the manufacturer.

(d) If the assistive device was a covered benefit under a health insurance policy or health benefit plan, then the health insurer or other entity providing the benefit shall be subrogated to the consumer’s right of recovery to the extent of the benefit provided.

(e) No person shall enforce the lease against the consumer after the consumer offers to return the assistive device having the non-conformity pursuant to this section or returns the assistive device to the vendor pursuant to this section.

(f) No assistive device returned by a consumer or assistive device lessor in this State, or by a consumer or assistive device lessor in another state under a similar law of that state, may be sold or leased again in this State, unless full written disclosure of the reasons for return is made to any prospective buyer or lessee.

(g) This subchapter shall not be construed to limit rights or remedies available to a consumer under any other law.

(h) Any waiver by a consumer of rights under this subchapter is void.

(i) A violation of this subchapter or rules adopted under this subchapter is deemed to be an unfair or deceptive practice in commerce and a violation of section 2453 of this title. The Attorney General has the same authority to make rules, conduct civil investigations, and enter into assurances of discontinuance as provided under subchapter 1 of this chapter.

(j) A consumer aggrieved by a violation of this subchapter or a violation of rules adopted under this subchapter may bring an action in Superior Court for appropriate equitable relief, the amount of the consumer’s damages, punitive damages in the case of a willful violation, the consideration or the value of the consideration given by the consumer, and reasonable costs and attorney’s fees.

(Added 1999, No. 104 (Adj. Sess.), § 1.)

Subchapter 1B Children's Product Safety

§ 2470a Definition

As used in this subchapter, “children’s product” means a product that is designed or intended for the care of or use by children under six years of age, whether or not it is also designed or intended for the care of or use by children six years of age or older, and the product is designed or intended to come into contact with the child while the product is used. A product is not a “children’s product” for purposes of this subchapter if:

(1) it may be used by or for the care of a child under six years of age, but is designed or intended for use by the general population and not solely or primarily for use by or the care of a child; or

(2) it is a medication, drug, or food or is intended to be ingested.

(Added 2001, No. 42, § 3.)

§ 2470b Unsafe children’s products; prohibition

(a) A children’s product is deemed to be unsafe for purposes of this subchapter if it meets any of the following criteria:

(1) It does not conform to all federal laws and regulations setting forth standards for the children’s product, including standards endorsed or established by the federal Consumer Product Safety Commission and the American Society for Testing and Materials.

(2) It has been recalled for any reason by an agency of the federal government or the product’s manufacturer, distributor, or importer, and the recall has not been rescinded.

(3) An agency of the federal government has issued a warning that a specific product’s intended use constitutes a safety hazard, and the warning has not been rescinded.

(b) The Department of Health shall create or adopt by reference and shall maintain and update a comprehensive list of children’s products that it has identified as meeting any of the criteria set forth in subdivisions (a)(1) through (3) of this section. The Department of Health shall make the comprehensive list available to the public at no cost and shall post it on its Internet website. The Department shall also encourage links to and from state, federal, and private Internet websites that describe children’s product standards, provide information on children or children’s products, or advertise or sell children’s products.

(c) It shall be an unfair or deceptive act or practice in commerce and a violation of section 2453 of this title, subject to enforcement and subject to the rights and remedies provided by subchapter 1 of this chapter, for a seller or lessor to remanufacture or retrofit, unless in compliance with the provisions of subsection (d) of this section, or for a seller or lessor to sell, contract to sell, or resell, lease, sublet, or otherwise place in the stream of commerce, on or after January 1, 2002, a children’s product that appears on the list of children’s products created and maintained under subsection (b) of this section.

(d)(1) A listed children’s product may be retrofitted if the retrofit has been approved or sanctioned by the agency of the federal government issuing the recall or warning or the agency responsible for approving the retrofit, if different from the agency issuing the recall or warning. A retrofitted children’s product may be sold or leased if it is accompanied at the time of sale or lease by a notice containing:

(A) a description of the original problem that made the recalled product unsafe;

(B) a description of the retrofit that explains how the original problem was eliminated and declaring that it is now safe to use for a child under six years of age; and

(2) The seller or lessor is responsible for ensuring that the notice is present with the retrofitted product at the time of sale or lease. A retrofit is exempt from the provisions of this subchapter if:

(A) the retrofit is for a children’s product that requires assembly by the consumer, the approved retrofit is provided with the product by the seller or lessor, and the retrofit is accompanied at the time of sale or lease by instructions explaining how to apply the retrofit; or

(B) the seller or lessor of a previously unsold or unleased product accomplishes the repair, approved or recommended by an agency of the federal government, prior to sale or lease.

(e) It shall be an unfair or deceptive act or practice in commerce and a violation of section 2453 of this title, subject to enforcement and subject to the rights and remedies provided by subchapter 1 of this chapter, for a person to manufacture and to sell, contract to sell, resell, lease, sublet, or otherwise place in the stream of commerce, on or after January 1, 2002, a children’s product that does not conform to all federal laws and regulations setting forth standards for the children’s product, including standards endorsed or established by the federal Consumer Product Safety Commission and the American Society for Testing and Materials.

(f) At least annually, the Department of Health shall notify day care facilities and family child care homes licensed or registered under 33 V.S.A. chapter 35 of the list of children’s products created and maintained under subsection (b) of this section.

(g) At least annually, the Department of Health shall notify pediatricians licensed under 26 V.S.A. chapter 23 of the list of children’s products created and maintained under subsection (b) of this section.

(Added 2001, No. 42, § 3; amended 2005, No. 174 (Adj. Sess.), § 14.)

§ 2470c Exception

A seller or lessor shall not be held in violation of any provision of this subchapter if the specific children’s product sold or leased is not deemed unsafe under subsection 2470b(a) of this title or was not included on the Department of Health’s list 14 days before the sale or commencement of the lease.

(Added 2001, No. 42, § 3.)

§ 2470d Penalty; remedies

(a) A seller or lessor who willfully and knowingly violates any provision of this subchapter shall be imprisoned not more than one year or fined not more than $1,000.00, or both.

(b) The rights and remedies available under this subchapter are in addition to any other rights and remedies that may exist in law or in equity for an aggrieved party, or for the Attorney General.

(Added 2001, No. 42, § 3.)

Subchapter 1C Lead in Consumer Products

§ 2470e Definitions

As used in this subchapter:

(1) “Children’s product” means any consumer product marketed for use by children under the age of 12 or whose substantial use or handling by children under 12 years of age is reasonably foreseeable, including toys, furniture, jewelry, personal care products, clothing, and food containers and packaging.

(2)(A) “Contain or containing lead,” unaccompanied by a specific standard, means containing or having a surface coating containing the following amount of lead by weight of lead or lead compound, unless the Commissioner of Health, in consultation with the Attorney General by rule, reduces this percentage generally or with respect to specific products:

(i) 0.06 percent as of October 1, 2008;

(ii) 0.03 percent as of July 1, 2009; and

(iii) 0.01 percent as of January 1, 2010.

(B) If the standard set under this subdivision (2) is preempted by a federal standard as to any class of products, then “contain or containing lead,” unaccompanied by a specific standard, means the lowest such federal standards and federal effective dates applicable to such a class of products.

(3) “Nonresidential paints and primers” does not mean artists’ supplies.

(Added 2007, No. 193 (Adj. Sess.), § 2; amended 2011, No. 136 (Adj. Sess.), § 5, eff. May 18, 2012.)

§ 2470f Prohibition of lead in children’s products

Except to the extent specifically preempted by federal law, no person shall manufacture, regardless of location, for sale in, offer for sale, sell in or into the stream of commerce, or otherwise introduce into the stream of commerce in Vermont any children’s product any component part of which contains lead. This prohibition shall not apply to:

(1) Any part of a children’s product that is not accessible to a child through normal and reasonably foreseeable use and abuse of such product. A component part is not accessible under this section if such component part is not physically exposed by reason of a sealed covering or casing and does not become physically exposed through reasonably foreseeable use and abuse of the product, except that paint, coatings, and electroplating shall not be considered barriers that would render lead in the substrate inaccessible to a child under this subdivision.

(2) Any component of a children’s product that is intended for children age eight or under, that complies with any more stringent federal or European Union standard for lead in consumer products or with a similar standard applicable in states with a total population of 25 million, and that is contained within a battery compartment that cannot be opened without a coin, screwdriver, or other common household tool.

(3) Any power cord, USB cable, audio-visual cable, jack, connector, or similar device or component used in connection with or attached to a children’s product that:

(A) conducts electric current;

(B) is not a small part, as defined by the Consumer Product Safety Commission in 16 C.F.R. part 1501;

(D) complies with the most stringent standard for lead in consumer products adopted by federal law, by states with a total population of at least 25 million, or by the European Union.

(Added 2007, No. 193 (Adj. Sess.), § 2.)

§ 2470g Prohibition of lead in jewelry

Except to the extent specifically preempted by federal law and in addition to the prohibition in section 2470f of this subchapter, no person shall manufacture, regardless of location, for sale in, offer for sale, or sell in or into the stream of commerce, or otherwise introduce into the stream of commerce in Vermont any article of jewelry or other metal decorative item containing lead that is not a children’s product as defined in section 2470e of this title, where the article, or any detachable part of the article, is the size of a small part as defined by the Consumer Product Safety Commission in 16 C.F.R. part 1501, unless the article is:

(1) expressly and prominently advertised as adult jewelry;

(2) not commonly understood to be an article for use by a child under age 12; and

(3) accompanied by a point-of-sale disclosure prescribed by the Attorney General to the effect that the article may contain lead at or above the prevailing legal limit for lead in children’s products, if that is true.

(Added 2007, No. 193 (Adj. Sess.), § 2.)

§ 2470h Consumer warnings; notification; phase-outs

Except to the extent specifically preempted by federal law:

(1) Wheel weights. Beginning January 1, 2010, the State of Vermont shall not use wheel weights containing lead in vehicles owned by the State or vehicles operated by the State under a long-term lease. Beginning September 1, 2011, no person shall sell or offer for sale in or into the State of Vermont a new motor vehicle with wheel weights containing lead.

(2)(A) Plumbing fixtures and related supplies. As prescribed by the Attorney General, beginning January 1, 2009, and ending December 31, 2009, any person who sells or offers for sale in or into the State of Vermont plumbing fixtures whose wetted surfaces contain more than a weighted average of 0.25 percent lead shall clearly and conspicuously post a warning at the point of sale stating that these products contain lead and shall also provide to each buyer prior to sale information on the risks of lead exposure.

(B) Beginning January 1, 2010, no person shall sell or offer for sale in or into the State of Vermont, or use in the State of Vermont, solder or flux for plumbing containing more than 0.2 percent lead, or plumbing fixtures whose wetted surfaces contain more than a weighted average of 0.25 percent lead.

(C) As prescribed by the Attorney General, beginning January 1, 2009, any person who sells or offers for sale in or into the State of Vermont solder or flux containing more than 0.2 percent lead shall clearly and conspicuously post a warning at the point of sale stating that these products contain lead and shall also provide to each buyer prior to sale information on the risks of lead exposure.

(D) For the purpose of this subdivision (2) of this section:

(i) the term “plumbing fixtures” means pipes, pipe and plumbing fittings, and fixtures used to convey or dispense water for human consumption;

(ii) the “weighted average” lead content shall be calculated by using the following formula: the percentage of lead content within each component that comes into contact with water shall be multiplied by the percent of the total wetted surface of the entire pipe and pipe fitting, plumbing fitting, or fixture represented in each component containing lead; these percentages shall be added; and the sum shall constitute the weighted average lead content of the pipe and pipe fitting, plumbing fitting, or fixture.

(3) Nonresidential paints and primers. As prescribed by the Attorney General, beginning January 1, 2009, and ending December 31, 2010, any person who sells or offers for sale in or into the State of Vermont nonresidential paints and primers containing lead shall clearly and conspicuously post a warning at the point of sale stating that these products contain lead and shall also provide to each buyer prior to sale information on the risks of lead exposure. Beginning January 1, 2011, no person shall sell or offer for sale in or into the State of Vermont nonresidential paints or primers containing lead. Beginning January 1, 2012, no person shall use nonresidential paints or primers containing lead in the State of Vermont.

(4) Salvage building materials. As prescribed by the Attorney General, beginning January 1, 2009, any person in commerce who sells or offers for sale in or into the State of Vermont salvage building materials made prior to 1978 shall clearly and conspicuously post a warning at the point of sale stating that these products may contain lead and shall also provide to each buyer prior to sale information on the risks of lead exposure.

(5) Other. The Attorney General, in consultation with the Commissioner of Health, may by rule require warnings, notifications, or a combination of these relating to other products containing lead.

(Added 2007, No. 193 (Adj. Sess.), § 2.)

§ 2470i Prohibition on removal of labels

No person in commerce shall remove from a consumer product any warning label affixed to it that relates in whole or in part to lead or lead hazards and which label is required by this State, the federal government, or any other state or country.

(Added 2007, No. 193 (Adj. Sess.), § 2.)

§ 2470j Prohibition on providing substantial assistance

No person shall provide substantial assistance to a person in violation of section 2470f, 2470g, 2470h, or 2470i of this title with knowledge or reason to know of the violation.

(Added 2007, No. 193 (Adj. Sess.), § 2.)

§ 2470k Violations

(a) A violation of this subchapter is deemed to be a violation of section 2453 of this title.

(b) The Attorney General has the same authority to make rules, conduct civil investigations, enter into assurances of discontinuance, and bring civil actions, and private parties have the same rights and remedies, as provided under subchapter 1 of this chapter.

(Added 2007, No. 193 (Adj. Sess.), § 2.)

§ 2470l Scope

(a) Nothing in this subchapter shall be construed to regulate firearms, ammunition, or components thereof, hunting or fishing equipment or components thereof, lead pellets from air rifles, shooting ranges, or circumstances resulting from shooting, handling, storing, casting, or reloading ammunition.

(b) Nothing in this subchapter shall be construed to alter the existing authority of the Agency of Natural Resources to regulate the lead content of products used in connection with fishing and hunting.

(Added 2007, No. 193 (Adj. Sess.), § 2.)

Subchapter 1D Third-Party Discount Membership Programs

§ 2470aa Definitions

As used in this subchapter:

(1) “Billing information” means any data that enables a seller of a third-party discount membership program to access a consumer’s credit or debit card, bank, or other account, but does not include the consumer’s name, e-mail address, telephone number, or mailing address. For credit card and debit card accounts, billing information includes the full account number, card type, and expiration date, and, if necessary, the security code. For accounts at a financial institution, “billing information” includes the full account number and routing number and, if necessary, the name of the financial institution holding the account.

(2) A “third-party discount membership program” is a program that entitles consumers to receive discounts, rebates, rewards, or similar incentives on the purchase of goods or services or both, in whole or in part, from any third party.

(Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.)

§ 2470bb Applicability

(a) A third-party discount membership program is a good or service within the meaning of subdivision 2451a(2) of this chapter.

(b) This subchapter applies only to persons who are regularly and primarily engaged in trade or commerce in this State in connection with offering or selling third-party discount membership programs.

(c) This subchapter shall not apply to an electronic payment system, as defined in section 2480o of this title, or to a financial institution, as defined in 8 V.S.A. § 11101(32).

(Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1; 2021, No. 20, § 19.)

§ 2470cc Required disclosures; consent

(a) No person shall charge or attempt to charge a consumer for a third-party discount membership program, or to renew a third-party discount membership program beyond the term expressly agreed to by the consumer or the term permitted under section 2470ff of this title, whichever is shorter, unless:

(1) before obtaining the consumer’s billing information, the person has clearly and conspicuously disclosed to the consumer all material terms of the transaction, including:

(A) a description of the types of goods and services on which a discount is available;

(B) the name of the third-party discount membership program, the name and address of the seller of the program, and a telephone number, e-mail address, or other contact information the consumer may use to contact the seller with questions concerning the operation of the program;

(D) the cost of the program, including the amount of any periodic charges, how often such charges are imposed, and the method of payment;

(E) the right to cancel and to terminate the program, which shall be no more restrictive than as required by section 2470ee of this subchapter, and a toll-free telephone number and e-mail address that can be used to cancel the membership;

(F) the maximum length of membership, as described in section 2470ff of this subchapter;

(G) in the event that the program is offered on the Internet through a link or referral from another business’s website, the fact that the seller is not affiliated with that business; and

(H) the fact that periodic notices of the program billings will be e-mailed or mailed to the consumer, as the case may be, consistent with section 2470dd of this title; and

(2) the person has received express informed consent for the charge from the consumer whose credit or debit card, bank, or other account will be charged, by:

(A) obtaining from the consumer:

(i) the consumer’s billing information; and

(ii) the consumer’s name and address and a means to contact the consumer; and

(B) requiring the consumer to perform an additional affirmative action, such as clicking on an online confirmation button, checking an online box that indicates the consumer’s consent to be charged the amount disclosed, or expressly giving consent over the telephone.

(b) A person who sells third-party discount membership programs shall retain evidence of a consumer’s express informed consent for at least three years after the consent is given.

(c) A person who sells a third-party discount membership program shall provide to a consumer on the receipt for the underlying good or service:

(1) confirmation that the consumer has signed up for a discount membership program;

(2) the price the consumer will be charged for the program;

(3) the date on which the consumer will first be charged for the program;

(4) the frequency of charges for the program; and

(5) information concerning the consumer’s right to cancel the program and a toll-free telephone number, address, and e-mail address a consumer may use to cancel the program.

(Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.)

§ 2470dd Periodic notices

(a) A person who periodically charges a consumer for a third-party discount membership program shall send the consumer a notice of the charge no less frequently than every three months from the date of initial enrollment that clearly and conspicuously discloses:

(1) a description of the program;

(2) the name of the third-party discount membership program and the name and address of the seller of the program;

(3) the cost of the program, including the amount of any periodic charges, how often such charges are imposed, and the method of payment;

(4) the right to cancel and to terminate the program, which shall be no more restrictive than as required by section 2470ee of this subchapter, and a toll-free number and e-mail address that can be used to cancel the membership; and

(5) the maximum length of membership, as described in section 2470ff of this subchapter.

(b) The notice specified in subsection (a) of this section:

(1) shall be sent:

(A) to the consumer’s last known e-mail address, if the consumer enrolled in the third-party discount membership program online or by e-mail, with the subject line, “IMPORTANT INFORMATION ABOUT YOUR DISCOUNT PROGRAM BILLING,” or substantially similar words, provided that the sender takes reasonable steps to verify that the e-mail has been opened; or

(B) otherwise by first-class mail to the consumer’s last known mailing address, with the heading on the enclosure and outside envelope, “IMPORTANT INFORMATION ABOUT YOUR DISCOUNT PROGRAM BILLING,” or substantially similar words; and

(2) shall not include any solicitation or advertising.

(Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.)

§ 2470ee Cancellation and termination

(a) In addition to any other right to revoke an offer, a consumer may cancel the purchase of a third-party discount membership program until midnight on the 30th day after the date the consumer has given express informed consent to be charged for the program. If the consumer cancels within the 30-day period, the seller of the third-party discount membership program shall, within 10 days of receiving the notice of cancellation, provide a full refund to the consumer.

(b)(1) Notice of cancellation shall be deemed given when deposited in a mailbox properly addressed and postage prepaid or when e-mailed to the e-mail address of the seller of the third-party discount membership program.

(2) A consumer may cancel a third-party discount membership program verbally by contacting the seller at a toll-free telephone number that the seller provides for that purpose.

(c) In addition to the right to cancel described in this subchapter, a consumer may terminate a third-party discount membership program at any time by providing notice to the seller by one of the methods described in this section. In that case, the consumer shall not be obligated to make any further payments under the program and shall not be entitled to any discounts under the program for any period of time after the last month for which payment has been made.

(d) If the seller of a third-party discount membership program cancels the program for any reason other than nonpayment by the consumer, the seller shall make pro rata reimbursement to the consumer of all periodic charges paid by the consumer for periods of time after cancellation. Prior to such cancellation, the seller shall first provide reasonable notice and an explanation of the cancellation in writing to the consumer.

(Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.)

§ 2470ff Maximum length of plan

No person shall sell, or offer for sale, a third-party discount membership program lasting longer than 18 months.

(Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.)

§ 2470gg Billing information

No person who offers or sells third-party discount membership programs shall obtain billing information relating to a consumer except directly from the consumer.

(Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.)

§ 2470hh Violations

(a) A person who violates this subchapter commits an unfair and deceptive act in trade and commerce in violation of section 2453 of this title.

(b) The Attorney General has the same authority to make rules, conduct civil investigations, enter into assurances of discontinuance, and bring civil actions as is provided under subchapter 1 of this chapter.

(c) It is an unfair and deceptive act and practice in commerce for any person to provide substantial assistance to the seller of a third-party discount membership program that has engaged or is engaging in an unfair or deceptive act or practice in commerce when the person or the person’s authorized agent:

(1) receives notice from a regulatory, law enforcement, or similar governmental authority that the seller of the third-party discount membership program is in violation of this subchapter;

(2) knows from information received or in its possession that the seller of the third-party discount membership program is in violation of this subchapter; or

(3) consciously avoids knowing that the seller of the third-party discount membership program is in violation of this subchapter.

(d) Subject to section 2452 of this title, a person who provides only incidental assistance, which does not further the sale of a third-party discount membership program, to the seller of the program, or who does not receive a benefit from providing assistance to the seller of a discount membership, shall not be liable under this section unless the person receives notice, knows, or consciously avoids knowing, pursuant to subdivision (c)(1), (2), or (3) of this section, that a third-party discount membership program is in violation of this chapter.

(Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 55, § 7; 2015, No. 128 (Adj. Sess.), § E.1.)

Subchapter 1E Add-on Discount Membership Programs

§ 2470ii Definitions

As used in this subchapter:

(1) An “add-on discount membership program” is a program that entitles consumers to receive discounts, rebates, rewards, or similar incentives on the purchase of goods or services or both, sold to a consumer during the purchase of a different good or service using the same billing information.

(2) “Billing information” means any data that enables a seller of an add-on discount membership program to access a consumer’s credit or debit card, bank, or other account, but does not include the consumer’s name, e-mail address, telephone number, or mailing address. For credit card and debit card accounts, billing information includes the full account number, card type, and expiration date and, if necessary, the security code. For accounts at a financial institution, “billing information” includes the full account number and routing number and, if necessary, the name of the financial institution holding the account.

(Added 2015, No. 128 (Adj. Sess.), § E.2.)

§ 2470jj Applicability

(a) An add-on discount membership program is a good or service within the meaning of subdivision 2451a(2) of this title.

(b) This subchapter applies only to persons who are regularly engaged in offering or selling add-on discount membership programs.

(c) This subchapter shall not apply to an electronic payment system, as defined in section 2480o of this title, or to a financial institution, as defined in 8 V.S.A. § 11101(32).

(Added 2015, No. 128 (Adj. Sess.), § E.2; amended 2021, No. 20, § 20.)

§ 2470kk Required disclosures; consent

(a) No person shall charge or attempt to charge a consumer for an add-on discount membership program or to renew an add-on discount membership program beyond the term expressly agreed to by the consumer, unless:

(1) before obtaining the consumer’s billing information, the person has clearly and conspicuously disclosed to the consumer all material terms of the transaction, including:

(A) a description of the types of goods and services on which a discount is available;

(B) the name of the add-on discount membership program, the name and address of the seller of the program, and a telephone number, e-mail address, or other contact information the consumer may use to contact the seller with questions concerning the operation of the program;

(C) the cost of the program, including the amount of any periodic charges, how often such charges are imposed, and the method of payment; and

(D) the right to cancel and to terminate the program, which shall be no more restrictive than as required by section 2470ll of this title, and a toll-free telephone number and e-mail address that can be used to cancel the membership;

(2) before obtaining the consumer’s billing information, the person has received express informed consent for the add-on membership program from the consumer whose credit or debit card, bank, or other account will be charged, by requiring the consumer to perform an additional affirmative action, such as clicking on an online confirmation button, checking an online box that indicates the consumer’s consent to be charged the amount disclosed, or expressly giving consent over the telephone; and

(3) after providing the disclosures and obtaining the consent required by subdivisions (1) and (2) of this subsection, obtaining from the consumer:

(A) the consumer’s billing information; and

(B) the consumer’s name and address and a means to contact the consumer.

(b) A person who sells an add-on discount membership program shall retain evidence of a consumer’s express informed consent for at least three years after the consent is given.

(c) A person who sells an add-on discount membership program shall provide to a consumer on the receipt for the underlying good or service:

(1) confirmation that the consumer has signed up for a discount membership program;

(2) the price the consumer will be charged for the program;

(3) the date on which the consumer will first be charged for the program;

(4) the frequency of charges for the program; and

(5) information concerning the consumer’s right to cancel the program and a toll-free telephone number, address, and e-mail address a consumer may use to cancel the program.

(Added 2015, No. 128 (Adj. Sess.), § E.2.)

§ 2470ll Cancellation and termination

(a) In addition to any other right to revoke an offer, a consumer may cancel the purchase of an add-on discount membership program until midnight on the 30th day after the date the consumer has given express informed consent to be charged for the program. If the consumer cancels within the 30-day period, the seller of the add-on discount membership program shall, within 10 days of receiving the notice of cancellation, provide a full refund to the consumer less the value of any discount the consumer has received by using the add-on discount membership program.

(b)(1) Notice of cancellation shall be deemed given when deposited in a mailbox properly addressed and postage prepaid or when e-mailed to the e-mail address of the seller of the add-on discount membership program.

(2) A consumer may cancel an add-on discount membership program verbally by contacting the seller at a toll-free telephone number that the seller provides for that purpose.

(c) In addition to the right to cancel described in this subchapter, a consumer may terminate an add-on discount membership program at any time by providing notice to the seller by one of the methods described in this section. In that case, the consumer shall not be obligated to make any further payments under the program and shall not be entitled to any discounts under the program for any period of time after the last month for which payment has been made.

(d) If the seller of an add-on discount membership program cancels the program for any reason other than nonpayment by the consumer, the seller shall make pro rata reimbursement to the consumer of all periodic charges paid by the consumer for periods of time after cancellation. Prior to such cancellation, the seller shall first provide reasonable notice and an explanation of the cancellation in writing to the consumer.

(Added 2015, No. 128 (Adj. Sess.), § E.2.)

§ 2470mm Billing information

A person who offers or sells a discount membership program may not obtain billing information relating to a consumer except directly from the consumer.

(Added 2015, No. 128 (Adj. Sess.), § E.2.)

§ 2470nn Violations

(a) A person who violates this subchapter commits an unfair and deceptive act in trade and commerce in violation of section 2453 of this title.

(c) It is an unfair and deceptive act and practice in commerce for any person to provide substantial assistance to the seller of an add-on discount membership program that has engaged or is engaging in an unfair or deceptive act or practice in commerce, when the person or the person’s authorized agent:

(1) receives notice from a regulatory, law enforcement, or similar governmental authority that the seller of the add-on discount membership program is in violation of this subchapter;

(2) knows from information received or in its possession that the seller of the add-on discount membership program is in violation of this subchapter; or

(3) consciously avoids knowing that the seller of the add-on discount membership program is in violation of this subchapter.

(d) Subject to section 2452 of this title, a person who provides only incidental assistance, which does not further the sale of an add-on discount membership program, to the seller of the program, or who does not receive a benefit from providing assistance to the seller of an add-on discount membership, shall not be liable under this section unless the person receives notice, knows, or consciously avoids knowing, pursuant to subdivision (c)(1), (2), or (3) of this section, that an add-on discount membership program is in violation of this chapter.

(Added 2015, No. 128 (Adj. Sess.), § E.2.)

Subchapter 2 Charitable Solicitations

§ 2471 Definitions

As used in this subchapter:

(1) “Charitable” means related to a charitable purpose.

(2) “Charitable organization” means any organization that is or holds itself out to be furthering any charitable purpose.

(3) “Charitable purpose” means any benevolent, educational, philanthropic, humane, patriotic, social welfare, advocacy, public health, environmental conservation, or civic objective or any objective of law enforcement officers, firefighters, or other persons who protect the public safety.

(4) “Contribution” means the grant, promise, or pledge of money, credit, financial assistance, or other goods or services in part or in whole for a charitable purpose.

(5) “Contributor” means a person who makes a contribution.

(6) “Fundraising campaign” means an effort undertaken during a specific time period by a paid fundraiser to solicit contributions on behalf of a charitable organization.

(7) “Gross receipts” mean all receipts before deduction of any administrative or operating expenses.

(8) “Paid fundraiser” means a person who, for financial consideration, solicits contributions from persons in this State, either directly or through employees, agents, or those with whom the paid fundraiser is in privity. A paid fundraiser does not include:

(A) Any person who, for compensation, plans, manages, advises, or consults in connection with the solicitation of contributions in this State, but does not solicit contributions; except that if the compensation is in whole or in part dependent on the number or value of contributions received, the person shall be considered a paid fundraiser.

(B) Any person who for profit is regularly and primarily engaged in trade or commerce in this State other than in connection with the raising of funds for charitable purposes and who represents to the public that an amount per unit of goods or services purchased by the public will benefit a charitable purpose.

(D) A person who solicits for an educational institution at which he or she is a bona fide student, unless the person is paid compensation that is in whole or in part dependent upon the number or value of contributions received.

(9) “Solicit” and “solicitation” mean the direct or indirect request for a contribution, including the solicitor’s offer or attempt to sell any property, rights, services, or other thing, in connection with which:

(A) The name of any charitable organization or name similar to any charitable organization is used as an inducement for making the contribution or consummating the sale.

(B) Any statement is made that implies that the whole or any part of the contribution will be donated to any charitable organization or will go to any charitable purpose. A solicitation shall be deemed to have taken place when the request for a contribution is made and at the place where the request is received, whether or not the person making the solicitation receives a contribution. A request or appeal on behalf of a candidate for office or a political committee is not a solicitation.

(Added 1989, No. 232 (Adj. Sess.), § 2; amended 1991, No. 102.)

§ 2472 Contracts between paid fundraisers and charitable organizations

(a) Prior to soliciting in this State, a paid fundraiser shall enter into a written contract with the charitable organization on whose behalf solicitations are to be made. The contract shall contain the following:

(1) A minimum percentage of the gross receipts of the fundraising campaign to be paid to the charitable organization.

(2) An itemized description of all expenses, commissions, and other amounts that are to be deducted from the receipts of the fundraising campaign, how they are to be calculated, and to whom they are to be paid.

(3) An authorized signature of the charitable organization indicating approval of the terms of the contract.

(4) The following statement in immediate proximity to the signature of the charitable organization, in a minimum size of 10 points:

Chapter 63 of Title 9 of the Vermont Statutes Annotated requires a paid fundraiser to provide the fundraiser’s charitable sponsor, within 60 days after the end of a solicitation campaign, with a statement setting out the name and address of each contributor and the amount of the contribution; the amount of the gross receipts; and an itemized list of all expenses, commissions, and other costs incurred in the campaign. The law also gives charities other rights, including the right to cancel this contract or to recover damages, or both, in certain circumstances. Contact the Vermont Attorney General for further information.

(5) A provision that prohibits the paid fundraiser from restricting in any way the use by the charitable organization of the list of donors to the campaign.

(b) Prior to commencing a solicitation, a paid fundraiser shall:

(1) Provide to the charitable organization on whose behalf solicitations are to be made, the wording to be used by the paid fundraiser when conducting written solicitations and a copy of any script to be used in conducting telephone or in-person solicitation.

(2) Obtain written approval from the charitable organization for the use of such wording and script.

(c) A charitable organization may rescind any contract with a paid fundraiser and have all contributions in the possession of the paid fundraiser returned to the contributors if the contract or the paid fundraiser does not comply with this subchapter.

(d) Upon application for State funds received through a grant or contract, a charitable organization shall disclose:

(1) the actual percentage of gross receipts of any fundraising campaign paid to the charitable organization within the two previous fiscal years; and

(2) the minimum contracted percentage of gross receipts to be paid by a paid fundraiser to the charitable organization in any current or known future fundraising campaign.

(Added 1989, No. 232 (Adj. Sess.), § 2; amended 2003, No. 51, § 2.)

§ 2473 Notice of solicitation

(a) At least 10 days prior to the commencement of a fundraising campaign, a paid fundraiser shall file with the Attorney General a notice of solicitation on a form prescribed by the Attorney General. The notice of solicitation shall contain the following:

(1) the name, permanent address, and permanent telephone number of the paid fundraiser and, if the paid fundraiser is a business entity, of each of its principal officers and directors;

(2) the name, address, and telephone number of the charitable organization on behalf of which solicitations are to be made;

(3) the nature, location, dates, parties, and outcome of any litigation or investigation concerning the fundraiser’s solicitation activity in any jurisdiction occurring within six years prior to the commencement of the fundraising campaign in this State;

(4) the nature and anticipated starting and ending dates of the solicitation campaign;

(5) the address and telephone number from which the solicitation will be conducted;

(6) the names and addresses of all employees and agents of, and individuals in privity with, the paid fundraiser who will solicit during the campaign, and whether any of these persons have been convicted of a felony or of a misdemeanor involving dishonesty arising from a charitable solicitation;

(7) the name and address of any member of the immediate family of an officer, director, or owner of the paid fundraiser and the name and address of any entity owned in whole or in part by an officer, director, or owner of the paid fundraiser with whom the paid fundraiser will incur expenses in connection with the solicitation campaign;

(8) a copy of the contract between the paid fundraiser and the charitable organization; and

(9) such other information as the Attorney General may by rule require.

(b) The notice of solicitation shall be accompanied by a bond approved by the Attorney General in the amount of $20,000.00. The bond shall run to the State and to any person who may have a cause of action against the paid fundraiser for any liability arising under this subchapter, as long as the action on the bond is brought within two years after accrual of the cause of action.

(c) A separate notice of solicitation shall be required to be filed for each separate solicitation campaign to be undertaken on behalf of a charitable organization. However, only one bond shall be required to be in effect at the same time for any one fundraiser, regardless of the number of notices of solicitation filed.

(d) Any material change in any information contained in a notice of solicitation shall be reported to the Attorney General in writing not more than seven days after the change occurs.

(e) The Attorney General may adopt rules to require that:

(1) the notice of solicitation be filed electronically, with proper verification;

(2) the paid fundraiser provide an electronic copy of the contract with the notice of solicitation or provide a copy of the contract upon request of the Attorney General; and

(3) the paid fundraiser provide an electronic copy of the bond with the notice of solicitation or provide a copy of the bond upon request of the Attorney General.

(f)(1) For each calendar year in which a paid fundraiser solicits in this State on behalf of a charitable organization, the paid fundraiser shall pay a registration fee of $675.00 to the Attorney General not later than 10 days prior to its first solicitation in this State.

(2) Each notice of solicitation filed in accordance with this section shall be accompanied by a fee of $270.00. In the case of a campaign lasting more than 12 months, an additional $270.00 fee shall be paid annually on or before the date of the anniversary of the commencement of the campaign.

(3) Fees paid under this subsection shall be deposited in a special fund managed pursuant to 32 V.S.A. chapter 7, subchapter 5 and shall be available to the Attorney General for the costs of administering sections 2471–2479 of this title.

(Added 1989, No. 232 (Adj. Sess.), § 2; amended 2003, No. 110 (Adj. Sess.), § 1, eff. May 11, 2004; 2013, No. 72, § 32; 2015, No. 57, § 29, eff. June 11, 2015; 2025, No. 27, § E.200.1, eff. July 1, 2025.)

§ 2474 Notice not to be used as an endorsement

A paid fundraiser shall not use or exploit the fact of filing a notice of solicitation to create the impression that the State has in any way endorsed or approved a solicitation or solicitation campaign.

(Added 1989, No. 232 (Adj. Sess.), § 2.)

§ 2475 Solicitations

(a) No paid fundraiser shall misrepresent, directly or indirectly, his or her relationship to a charitable organization.

(b) No paid fundraiser or charitable organization shall misrepresent, directly or indirectly, to a contributor or potential contributor any fact relating to the solicitation, including the percentage of the contribution that will be paid over to the charitable organization or the purpose for which the contribution will be used.

(c) No paid fundraiser shall represent, directly or indirectly, that any part of the contributions received will be given or donated to any charitable organization unless the organization has previously consented in writing to the use of its name.

(d) The provisions of this section shall also apply to any person that a paid fundraiser employs or engages, directly or indirectly, to solicit contributions.

(e) No paid fundraiser shall solicit a contribution from any person in this State without clearly and conspicuously disclosing to the person, both orally, if the paid fundraiser is soliciting in whole or in part by telephone, and in writing, if the paid fundraiser is soliciting in whole or in part by means of writing:

(1) that the solicitor is being paid by the charitable organization on whose behalf the solicitation is being made; and

(2) how the potential contributor may obtain information from the State on the respective percentages of contributions that will be paid to the charitable organization and to the paid fundraiser.

(Added 1989, No. 232 (Adj. Sess.), § 2; amended 1997, No. 42, §§ 3, 4; 2003, No. 51, § 3.)

§ 2476 Bank accounts

(a) All checks and money orders contributed in response to a solicitation shall be made out to the name of the charitable organization.

(b) A paid fundraiser shall immediately deposit, in a bank account in the name of the charitable organization with which the paid fundraiser has contracted, all contributions received by the paid fundraiser. The signature of the treasurer or other agent designated by the charitable organization shall be required to remove any funds from the account.

(c) Within 60 days after a solicitation campaign has been completed, the paid fundraiser shall file with the charitable organization a closing statement for the campaign, including the name and address of each contributor and the amount of the contribution; the amount of gross receipts; and an itemized list of all expenses, commissions, and other costs incurred in the campaign.

(Added 1989, No. 232 (Adj. Sess.), § 2.)

§ 2477 Financial report

(a) No later than 90 days after a fundraising campaign has been completed, and no later than 90 days after the anniversary of the commencement of a fundraising campaign lasting more than one year, a paid fundraiser that has solicited contributions in this State shall file a financial report with the Attorney General on a form prescribed by the Attorney General. The information required by this section shall pertain to the entire fundraising campaign, or, in the case of a campaign lasting more than one year, to the 12 months ending on the most recent anniversary of the commencement of the campaign.

(b) The financial report shall contain the following:

(1) Total gross receipts.

(2) A description of how the gross receipts were distributed, including an itemized list of all expenses, commissions, and other costs of the fundraising campaign, and the net amount paid to the charitable organization for its charitable purposes, after payment of all fundraising expenses, commissions, and other costs.

(3) The percentage of gross receipts represented by the total of fundraising expenses, commissions, and other costs.

(4) The percentage of gross receipts represented by the net amount paid to the charitable organization for its charitable purposes, after payment of all fundraising expenses, commissions, and other costs.

(5) The signature of the charitable organization.

(6) Such other information as the Attorney General may by rule require.

(c) The Attorney General may adopt rules requiring that the financial report be filed electronically, with proper verification.

(Added 1989, No. 232 (Adj. Sess.), § 2; amended 2003, No. 110 (Adj. Sess.), § 2, eff. May 11, 2004.)

§ 2478 Records required

(a) A paid fundraiser shall maintain such records as the Attorney General may by rule require for three years from the end of the solicitation campaign to which they pertain.

(b) Whenever the Attorney General has reason to believe that a paid fundraiser has violated this subchapter, the Attorney General may inspect all records required to be maintained by a paid fundraiser except that the identities of the contributors shall be available for inspection by the Attorney General upon request, only through a civil investigation conducted pursuant to subsection 2479(b) of this title.

(Added 1989, No. 232 (Adj. Sess.), § 2.)

§ 2479 Violations

(a) A violation of this subchapter, including the filing of any false information on a notice of solicitation or financial report, is deemed to be a violation of section 2453 of this title. This section shall not be construed to limit a paid fundraiser’s liability under any other law.

(b) The Attorney General has the same authority to make rules, conduct civil investigations, and bring civil actions with respect to the acts and practices of paid fundraisers and charitable organizations as is provided under subchapter 1 of this chapter.

(c) A contributor or a charitable organization has the same rights with respect to the acts and practices of a paid fundraiser as a consumer has under section 2461 of this title.

(Added 1989, No. 232 (Adj. Sess.), § 2; amended 1997, No. 42, § 5.)

Subchapter 2A Musical Performances

§ 2479a Truth in advertising and producing musical performances

(a) As used in this section:

(1) “Performing group” means a vocal or instrumental group that uses the name of another group that has previously released a commercial sound recording under that name.

(2) “Recording group” means a vocal or instrumental group in which at least one of the members previously released a commercial sound recording under that group’s name and in which the member or members have a legal right by virtue of use or operation under the group name without having abandoned the name or affiliation with the group.

(3) “Sound recording” means a disc, tape, or other phono-recording material on which a series of musical, spoken, or other sounds has been embodied.

(b) No person shall advertise or conduct a live musical performance or production in Vermont through false, deceptive, or misleading affiliation, connection, or association with a performing group or a recording group, except under one or more of the following requirements:

(1) The performing group is the authorized registrant and owner of a federal service mark for the group name registered in the U.S. Patent and Trademark Office.

(2) At least one member of the performing group was a member of the recording group and has a legal right by virtue of use or operation under the group name and has not abandoned the name or affiliation with the group.

(3) The live musical performance or production is conspicuously identified in all advertising and promotion as a salute or tribute to the recording group, and the name of the performing group is different from the recording group.

(4) The performance or production is expressly authorized by the recording group.

(c) The Attorney General or State’s Attorney has the same authority to make rules, conduct civil investigations, and bring civil actions with respect to violations of subsection (b) of this section as provided under subchapter 1 of this chapter. Each performance or production or advertisement found to be a violation of subsection (b) of this section shall constitute a separate violation.

(Added 2007, No. 109 (Adj. Sess.), § 1.)

Subchapter 3 Fair Credit Reporting

§ 2480a Definitions

As used in this subchapter and subchapter 10 of this chapter:

(1) “Consumer” means a natural person other than a protected consumer.

(2) “Consumer who is subject to a protected consumer security freeze” means a natural person:

(A) for whom a credit reporting agency placed a security freeze under section 2480h of this title; and

(B) who, on the day on which a request for the removal of the security freeze is submitted under section 2480h of this title, is not a protected consumer.

(3) “Credit report” means any written, oral, or other communication of any information by a credit reporting agency bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, including an investigative credit report. The term does not include:

(A) a report containing information solely as to transactions or experiences between the consumer and the person making the report; or

(B) an authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device.

(4) “Credit reporting agency” or “agency” means a person who, for fees, dues, or on a cooperative basis, regularly engages in whole or in part in the practice of assembling or evaluating information concerning a consumer’s credit or other information for the purpose of furnishing a credit report to another person.

(5) “File” shall have the same meaning as in 15 U.S.C. § 1681a.

(6) “Identity theft” means the unauthorized use of another person’s personal identifying information to obtain credit, goods, services, money, or property.

(7) “Incapacitated person” shall have the same meaning as in 14 V.S.A. § 3152.

(8) “Investigative credit report” means a report in which information on a consumer’s character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom the consumer is acquainted or who may have knowledge concerning any such items of information. The term does not include reports of specific factual information on a consumer’s credit record obtained directly from a creditor of the consumer or from a credit reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer.

(9)(A) “Personal information” means personally identifiable financial information:

(i) provided by a consumer to another person;

(ii) resulting from any transaction with the consumer or any service performed for the consumer; or

(iii) otherwise obtained by another person.

(B) “Personal information” does not include:

(i) publicly available information, as that term is defined by the regulations prescribed under 15 U.S.C. § 6804; or

(ii) any list, description, or other grouping of consumers and publicly available information pertaining to the consumers that is derived without using any nonpublic personal information.

(C) Notwithstanding subdivision (B) of this subdivision (9), “personal information” includes any list, description, or other grouping of consumers and publicly available information pertaining to the consumers that is derived using any nonpublic personal information other than publicly available information.

(10) “Proper authority” means:

(A) in the case that it is required of a protected consumer’s representative:

(i) sufficient proof of identification of the protected consumer;

(ii) sufficient proof of identification of the protected consumer’s representative; and

(iii) sufficient proof of authority to act on behalf of the protected consumer; and

(B) in the case that it is required of a consumer who is subject to a protected consumer security freeze:

(i) sufficient proof of identification of the consumer who is subject to a protected consumer security freeze; and

(ii) proof that the consumer who is subject to a protected consumer security freeze is not a protected consumer.

(11) “Proper identification” shall have the same meaning as in 15 U.S.C. § 1681h(a)(1), and includes:

(A) the consumer’s full name, including first, last, and middle names and any suffix;

(B) any name the consumer previously used;

(C) the consumer’s current and recent full addresses, including street address, any apartment number, city, state, and zip code;

(D) the consumer’s Social Security number; and

(E) the consumer’s date of birth.

(12) “Protected consumer” means a natural person who, at the time a request for a security freeze is made, is:

(A) under 16 years of age;

(B) an incapacitated person; or

(13) “Protected consumer security freeze” means:

(A) if a consumer reporting agency does not have a file that pertains to a protected consumer, a restriction that:

(i) is placed on the protected consumer’s record in accordance with this subchapter; and

(ii) except as otherwise provided in this subchapter, prohibits the consumer reporting agency from releasing the protected consumer’s record; or

(B) if a consumer reporting agency has a file that pertains to the protected consumer, a restriction that:

(i) is placed on the protected consumer’s credit report in accordance with this subchapter; and

(ii) except as otherwise provided in this subchapter, prohibits the consumer reporting agency from releasing the protected consumer’s credit report or any information derived from the protected consumer’s credit report.

(14) “Protected person” shall have the same meaning as in 14 V.S.A. § 3152.

(15) “Record” means a compilation of information that:

(A) identifies a protected consumer;

(B) is created by a consumer reporting agency solely for the purpose of complying with this section; and

(C) may not be created or used to consider the protected consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.

(16) “Representative” means a person who provides to a consumer reporting agency sufficient proof of authority to act on behalf of a protected consumer.

(17) “Security freeze” means a notice placed in a credit report, at the request of the consumer, pursuant to section 2480h of this title.

(18) “Sufficient proof of authority” means documentation that shows that a person has authority to act on behalf of a protected consumer, including:

(A) a birth certificate;

(B) a court order;

(D) a written, notarized statement signed by the person that expressly describes the person’s authority to act on behalf of the protected consumer.

(19) “Sufficient proof of identification” means information or documentation that identifies a protected consumer or a representative, including:

(A) a Social Security number or a copy of a Social Security card issued by the U.S. Social Security Administration;

(B) a certified or official copy of a birth certificate; or

(Added 1991, No. 246 (Adj. Sess.), § 1; amended 2003, No. 155 (Adj. Sess.), § 1, eff. July 1, 2005; 2005, No. 211 (Adj. Sess.), § 1; 2017, No. 179 (Adj. Sess.), § 4, eff. Jan. 1, 2019; 2019, No. 57, § 21.)

§ 2480b Disclosures to consumers

(a) A credit reporting agency shall, upon request and proper identification of any consumer, clearly and accurately disclose to the consumer all information available to users at the time of the request pertaining to the consumer, including:

(1) any credit score or predictor relating to the consumer, in a form and manner that complies with such comments or guidelines as may be issued by the Federal Trade Commission;

(2) the names of users requesting information pertaining to the consumer during the prior 12-month period and the date of each request; and

(3) a clear and concise explanation of the information.

(b) As frequently as new telephone directories are published, the credit reporting agency shall cause to be listed its name and number in each telephone directory published to serve communities of this State. In accordance with rules adopted by the Attorney General, the credit reporting agency shall make provision for consumers to request by telephone the information required to be disclosed pursuant to subsection (a) of this section at no cost to the consumer.

(c) Any time a credit reporting agency is required to make a written disclosure to consumers pursuant to 15 U.S.C. § 1681g, it shall disclose, in at least 12-point type, and in bold type as indicated, the following notice:

“NOTICE TO VERMONT CONSUMERS

(1) Under Vermont law, you are allowed to receive one free copy of your credit report every 12 months from each credit reporting agency. If you would like to obtain your free credit report from [INSERT NAME OF COMPANY], you should contact us by [[writing to the following address: [INSERT ADDRESS FOR OBTAINING FREE CREDIT REPORT]] or [calling the following number: [INSERT TELEPHONE NUMBER FOR OBTAINING FREE CREDIT REPORT]], or both].

(2) Under Vermont law, no one may access your credit report without your permission except under the following limited circumstances:

(A) in response to a court order;

(B) for direct mail offers of credit;

(C) if you have given ongoing permission and you have an existing relationship with the person requesting a copy of your credit report;

(D) where the request for a credit report is related to an education loan made, guaranteed, or serviced by the Vermont Student Assistance Corporation;

(E) where the request for a credit report is by the Office of Child Support when investigating a child support case;

(F) where the request for a credit report is related to a credit transaction entered into prior to January 1, 1993;

(G) where the request for a credit report is by the Vermont Department of Taxes and is used for the purpose of collecting or investigating delinquent taxes; or

(H) where the request for a credit report is by an organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code for the purpose of determining eligibility for the abolition of medical debt.

(3) If you believe a law regulating consumer credit reporting has been violated, you may file a complaint with the Vermont Attorney General’s Consumer Assistance Program, 104 Morrill Hall, University of Vermont, Burlington, Vermont 05405.

Vermont Consumers

Have the Right to Obtain a Security Freeze

You have a right to place a “security freeze” on your credit report pursuant to 9 V.S.A. § 2480h at no charge. The security freeze will prohibit a credit reporting agency from releasing any information in your credit report without your express authorization. A security freeze must be requested in writing by certified mail.

The security freeze is designed to help prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gains access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding new loans, credit, mortgage, insurance, government services or payments, rental housing, employment, investment, license, cellular phone, utilities, digital signature, internet credit card transaction, or other services, including an extension of credit at point of sale.

When you place a security freeze on your credit report, within ten business days you will be provided a personal identification number, password, or other equally or more secure method of authentication to use if you choose to remove the freeze on your credit report or authorize the release of your credit report for a specific party, parties, or period of time after the freeze is in place. To provide that authorization, you must contact the credit reporting agency and provide all of the following:

(1) The unique personal identification number, password, or other method of authentication provided by the credit reporting agency.

(2) Proper identification to verify your identity.

(3) The proper information regarding the third party or parties who are to receive the credit report or the period of time for which the report shall be available to users of the credit report.

A credit reporting agency may not charge a fee to remove the freeze on your credit report or authorize the release of your credit report for a specific party, parties, or period of time after the freeze is in place.

A credit reporting agency that receives a request from a consumer to lift temporarily a freeze on a credit report shall comply with the request no later than three business days after receiving the request.

A security freeze will not apply to “preauthorized approvals of credit.” If you want to stop receiving preauthorized approvals of credit, you should call [INSERT PHONE NUMBERS] [ALSO INSERT ALL OTHER CONTACT INFORMATION FOR PRESCREENED OFFER OPT-OUT.]

A security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account, provided you have previously given your consent to this use of your credit reports. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.

You have a right to bring a civil action against someone who violates your rights under the credit reporting laws. The action can be brought against a credit reporting agency or a user of your credit report.”

(d) The information required to be disclosed by this section shall be disclosed in writing. The information required to be disclosed pursuant to subsection (c) of this section shall be disclosed on one side of a separate document, with text no smaller than that prescribed by the Federal Trade Commission for the notice required under 15 U.S.C. § 1681g. The information required to be disclosed pursuant to subsection (c) of this section may accurately reflect changes in numerical items that change over time (such as the telephone number or address of Vermont State agencies) and remain in compliance.

(e) The Attorney General may revise this required notice by rule as appropriate from time to time, provided no new substantive rights are created.

(Added 1991, No. 246 (Adj. Sess.), § 1; amended 1993, No. 3, § 1, eff. April 9, 1993; 1997, No. 93 (Adj. Sess.), § 1; 2003, No. 155 (Adj. Sess.), § 2, eff. July 1, 2005; 2005, No. 211 (Adj. Sess.), § 2; 2017, No. 171 (Adj. Sess.), § 3, eff. May 22, 2018; 2021, No. 20, § 21; 2025, No. 21, § 5, eff. July 1, 2025.)

§ 2480c Charges for certain disclosures by credit reporting agencies

(a) A credit reporting agency shall not impose a charge for:

(1) providing the information required to be disclosed under subsection 2480b(a) of this title, once every 12 months;

(2) providing the notice required under subsection 2480d(g) of this title (notice of results of reinvestigation); or

(3) notifying any person designated by the consumer pursuant to 15 U.S.C. § 1681i of the deletion of information that is found to be inaccurate or that can no longer be verified.

(b) For all other disclosures to consumers of information available to users pertaining to the consumer the credit reporting agency may impose a reasonable charge, not to exceed $7.50, on the consumer.

(Added 1991, No. 246 (Adj. Sess.), § 1.)

§ 2480d Procedure in case of disputed accuracy

(a) If the completeness or accuracy of any item of information contained in the consumer’s file is disputed by the consumer and the consumer notifies the credit reporting agency directly of such dispute, the agency shall reinvestigate free of charge and record the current status of the disputed information on or before 30 business days after the date the agency receives notice from the consumer.

(b) On or before five business days after the date a credit reporting agency receives notice of a dispute from a consumer in accordance with subsection (a) of this section, the agency shall provide notice of the dispute to all persons who provided any item of information in dispute.

(c) Notwithstanding subsection (a) of this section, a credit reporting agency may terminate a reinvestigation of information disputed by a consumer under such subsection if the agency reasonably determines that such dispute by the consumer is frivolous or irrelevant. Upon making such a determination, a credit reporting agency shall promptly notify the consumer of such determination and the reasons therefor, by mail, or if authorized by the consumer for that purpose, by telephone. The presence of contradictory information in the consumer’s file does not in and of itself constitute reasonable grounds for determining the dispute is frivolous or irrelevant.

(d) In conducting a reinvestigation under subsection (a) of this section, the credit reporting agency shall review and consider all relevant information submitted by the consumer with respect to such disputed information.

(e) If, after a reinvestigation under subsection (a) of this section of any information disputed by a consumer, the information is found to be inaccurate or cannot be verified, the credit reporting agency shall promptly delete such information from the consumer’s file. For purposes of this section, “information” shall not include other information in the same item that is not disputed by the consumer.

(f) If any information is deleted after a reinvestigation under subsection (a) of this section, the information may not be reinserted in the consumer’s file after deletion unless the person who furnishes the information reinvestigates and states in writing or by electronic record to the agency that the information is complete and accurate. Such furnisher shall not provide such statement unless the furnisher reasonably believes that the information is complete and accurate. Upon such reinvestigation and statement by the furnisher, the credit reporting agency shall promptly notify the consumer of any reinsertion.

(g) A credit reporting agency shall provide written notice of the results of any reinvestigation under this subsection within five business days of the completion of the reinvestigation, by mail or, if authorized by the consumer for that purpose, by telephone. This notice shall include:

(1) a statement that the reinvestigation is complete;

(2) a statement of the determination of the agency on the completeness or accuracy of the disputed information;

(3) a credit report that is based upon the consumer’s file as that file is revised as a result of the reinvestigation;

(4) a description of the manner in which the information disputed by the consumer has been altered, changed, deleted, or modified in the consumer’s credit report;

(5) a description of the procedure used to determine the accuracy and completeness of the information, including the name, business address, and, if available, the telephone number of any person contacted in connection with such information; and

(6) a notification that the consumer has the right, pursuant to 15 U.S.C. § 1681i, to add a statement to the consumer’s file disputing the accuracy or completeness of the information.

(Added 1991, No. 246 (Adj. Sess.), § 1.)

§ 2480e Consumer consent

(a) A person shall not obtain the credit report of a consumer unless:

(1) the report is obtained in response to the order of a court having jurisdiction to issue such an order; or

(2) the person has secured the consent of the consumer, and the report is used for the purpose consented to by the consumer.

(b) Credit reporting agencies shall adopt reasonable procedures to ensure maximum possible compliance with subsection (a) of this section.

(1) the ability of a person who has secured the consent of the consumer pursuant to subdivision (a)(2) of this section to include in his or her request to the consumer permission to also obtain credit reports, in connection with the same transaction or extension of credit, for the purpose of reviewing the account, increasing the credit line on the account, for the purpose of taking collection action on the account, or for other legitimate purposes associated with the account; and

(2) the use of credit information for the purpose of prescreening, as defined and permitted from time to time by the Federal Trade Commission.

(Added 1991, No. 246 (Adj. Sess.), § 1.)

§ 2480f Violations

(a) A violation of this subchapter or rules adopted under this subchapter is deemed to be a violation of section 2453 of this title. This section shall not be construed to limit a credit reporting agency’s liability under any other law.

(b) A consumer aggrieved by a violation of this subchapter or rules adopted under this subchapter may bring an action in Superior Court for the consumer’s damages, injunctive relief, punitive damages in the case of a willful violation, and reasonable costs and attorney’s fees. In the case of a violation by a credit reporting agency, or in the case of a willful violation by any person, the court, in addition, may issue an award for the consumer’s actual damages or $100.00, whichever is greater. In considering the amount of punitive damages, the court may consider, among other relevant factors:

(1) the extent to which a credit reporting agency failed to consider relevant information provided by the consumer during any reinvestigation of information in the consumer’s file; and

(2) the extent to which a credit reporting agency maintained and complied with procedures designed to ensure compliance with the requirements of this subchapter.

(c) The Attorney General has the same authority to make rules, conduct civil investigations, and bring civil actions with respect to any alleged violations of this subchapter as is provided under subchapter 1 of this chapter.

(Added 1991, No. 246 (Adj. Sess.), § 1.)

§ 2480g Exemptions

(a) The provisions of this subchapter shall not apply to education loans made, guaranteed, or serviced by the Vermont Student Assistance Corporation pursuant to 16 V.S.A. chapter 87.

(b) The provisions of section 2480e of this title shall not apply to the Office of Child Support services when investigating a child support case pursuant to Title IV-D of the Social Security Act and 33 V.S.A. § 4102.

(c) The provisions of section 2480e of this title shall not apply to credit transactions entered into prior to January 1, 1993.

(d) The provisions of section 2480e of this title shall not apply to the Department of Taxes, its agents, or assigns:

(1) where the Department has reason to believe that the taxpayer is liable for delinquent taxes, and the Department is seeking the taxpayer’s credit report in furtherance of the investigation or collection of such delinquent taxes; or

(2) where the Department is seeking the taxpayer’s credit report in furtherance of the collection of a debt owed by the taxpayer to the State of Vermont.

(e) The provisions of section 2480e of this title shall not apply to an organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code when determining eligibility for the abolition of medical debt; provided, however, that the exemption from the provisions of section 2480e of this title shall not apply to a tax-exempt organization that is a large health care facility, as defined in 18 V.S.A. § 9481.

(Added 1991, No. 246 (Adj. Sess.), § 1; amended 1997, No. 50, § 1, eff. June 26, 1997; 2025, No. 21, § 6, eff. July 1, 2025.)

§ 2480h Security freeze by credit reporting agency; time in effect

(a)(1) A Vermont consumer may place a security freeze on his or her credit report. A credit reporting agency shall not charge a fee to Vermont consumers for placing or removing, removing for a specific party or parties, or removing for a specific period of time after the freeze is in place, a security freeze on a credit report.

(2) A consumer may place a security freeze on his or her credit report by making a request in writing by certified mail to a credit reporting agency.

(3) A security freeze shall prohibit, subject to the exceptions in subsection (l) of this section, the credit reporting agency from releasing the consumer’s credit report or any information from it without the express authorization of the consumer.

(4) This subsection does not prevent a credit reporting agency from advising a third party that a security freeze is in effect with respect to the consumer’s credit report.

(b) A credit reporting agency shall place a security freeze on a consumer’s credit report not later than five business days after receiving a written request from the consumer.

(c) The credit reporting agency shall send a written confirmation of the security freeze to the consumer within 10 business days and shall provide the consumer with a unique personal identification number or password, other than the customer’s Social Security number, or another method of authentication that is equally or more secure than a PIN or password, to be used by the consumer when providing authorization for the release of his or her credit for a specific party, parties, or period of time.

(d) If the consumer wishes to allow his or her credit report to be accessed for a specific party, parties, or period of time while a freeze is in place, he or she shall contact the credit reporting agency, request that the freeze be temporarily lifted, and provide the following:

(1) proper identification;

(2) the unique personal identification number, password, or other method of authentication provided by the credit reporting agency pursuant to subsection (c) of this section; and

(3) the proper information regarding the third party, parties, or time period for which the report shall be available to users of the credit report.

(e) A credit reporting agency may develop procedures involving the use of telephone, fax, the Internet, or other electronic media to receive and process a request from a consumer to lift temporarily a freeze on a credit report pursuant to subsection (d) of this section in an expedited manner.

(f) A credit reporting agency that receives a request from a consumer to lift temporarily a freeze on a credit report pursuant to subsection (d) of this section shall comply with the request not later than three business days after receiving the request.

(g) A credit reporting agency shall remove or lift temporarily a freeze placed on a consumer’s credit report only in the following cases:

(1) Upon consumer request, pursuant to subsection (d) or (j) of this section.

(2) If the consumer’s credit report was frozen due to a material misrepresentation of fact by the consumer. If a credit reporting agency intends to remove a freeze upon a consumer’s credit report pursuant to this subdivision, the credit reporting agency shall notify the consumer in writing prior to removing the freeze on the consumer’s credit report.

(h) If a third party requests access to a credit report on which a security freeze is in effect and this request is in connection with an application for credit or any other use and the consumer does not allow his or her credit report to be accessed for that specific party or period of time, the third party may treat the application as incomplete.

(i) If a consumer requests a security freeze pursuant to this section, the credit reporting agency shall disclose to the consumer the process of placing and lifting temporarily a security freeze and the process for allowing access to information from the consumer’s credit report for a specific party, parties, or period of time while the security freeze is in place.

(j) A security freeze shall remain in place until the consumer requests that the security freeze be removed. A credit reporting agency shall remove a security freeze within three business days of receiving a request for removal from the consumer who provides both of the following:

(1) proper identification; and

(2) the unique personal identification number, password, or other method of authentication provided by the credit reporting agency pursuant to subsection (c) of this section.

(k) A credit reporting agency shall require proper identification of the person making a request to place or remove a security freeze.

(l) The provisions of this section, including the security freeze, do not apply to the use of a consumer report by the following:

(1) A person, or the person’s subsidiary, affiliate, agent, or assignee with which the consumer has or, prior to assignment, had an account, contract, or debtor-creditor relationship for the purposes of reviewing the account or collecting the financial obligation owing for the account, contract, or debt, or extending credit to a consumer with a prior or existing account, contract, or debtor-creditor relationship, subject to the requirements of section 2480e of this title. For purposes of this subdivision, “reviewing the account” includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.

(2) A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom access has been granted under subsection (d) of this section for purposes of facilitating the extension of credit or other permissible use.

(3) Any person acting pursuant to a court order, warrant, or subpoena.

(4) The Office of Child Support when investigating a child support case pursuant to Title IV-D of the Social Security Act (42 U.S.C. § 651 et seq.) and 33 V.S.A. § 4102.

(5) The Economic Services Division of the Department for Children and Families or the Department of Vermont Health Access or its agents or assignee acting to investigate welfare or Medicaid fraud.

(6) The Department of Taxes, municipal taxing authorities, or the Department of Motor Vehicles, or any of their agents or assignees, acting to investigate or collect delinquent taxes or assessments, including interest and penalties, unpaid court orders, or acting to fulfill any of their other statutory or charter responsibilities.

(7) A person’s use of credit information for the purposes of prescreening as provided by the federal Fair Credit Reporting Act.

(8) Any person for the sole purpose of providing a credit file monitoring subscription service to which the consumer has subscribed.

(9) A credit reporting agency for the sole purpose of providing a consumer with a copy of his or her credit report upon the consumer’s request.

(10) Any property and casualty insurance company for use in setting or adjusting a rate or underwriting for property and casualty insurance purposes.

(Added 2003, No. 155 (Adj. Sess.), § 3, eff. July 1, 2005; amended 2005, No. 174 (Adj. Sess.), § 15; 2005, No. 211 (Adj. Sess.), §§ 3, 4; 2009, No. 156 (Adj. Sess.), § I.15; 2017, No. 171 (Adj. Sess.), § 4, eff. May 22, 2018.)

§ 2480i Credit reporting agency duties if security freeze in place

If a security freeze is in place, a credit reporting agency shall not change any of the following official information in a credit report without sending a written confirmation of the change to the consumer within 30 days of the change being posted to the consumer’s file: name, date of birth, Social Security number, and address. Written confirmation is not required for technical modifications of a consumer’s official information, including name and street abbreviations, complete spellings, or transposition of numbers or letters. In the case of an address change, the written confirmation shall be sent to both the new address and the former address.

(Added 2003, No. 155 (Adj. Sess.), § 3, eff. July 1, 2005.)

§ 2480j Persons not required to place security freeze

The following persons are not required to place in a credit report a security freeze pursuant to section 2480h of this title; provided, however, that any person that is not required to place a security freeze on a credit report under the provisions of subdivision (3) of this section shall be subject to any security freeze placed on a credit report by another credit reporting agency from which it obtains information:

(1) A check services or fraud prevention services company, which reports on incidents of fraud or issues authorizations for the purpose of approving or processing negotiable instruments, electronic fund transfers, or similar methods of payment.

(2) A deposit account information service company, which issues reports regarding account closures due to fraud, substantial overdrafts, ATM abuse, or similar negative information regarding a consumer to inquiring banks or other financial institutions for use only in reviewing a consumer request for a deposit account at the inquiring bank or financial institution.

(3) A credit reporting agency that:

(A) acts only to resell credit information by assembling and merging information contained in a database of one or more credit reporting agencies; and

(B) does not maintain a permanent database of credit information from which new credit reports are produced.

(Added 2003, No. 155 (Adj. Sess.), § 3, eff. July 1, 2005.)

§ 2480k Complaints to law enforcement agencies

A person who has learned or reasonably suspects that his or her personal identifying information has been unlawfully used by another, as described in 13 V.S.A. § 2030(a), may make a complaint about the unlawful use of personal identifying information to the State Police or to the person’s local law enforcement agency. The law enforcement agency shall take the complaint and provide the complainant with a copy of the complaint, the name of the law enforcement officer taking the complaint, and an incident number or case number assigned to the complaint by the law enforcement agency. If the suspected crime was committed in a different jurisdiction, the law enforcement agency shall take the complaint and provide the complainant with a copy of the complaint, the name of the law enforcement officer taking the complaint, and an incident number or case number assigned to the complaint by the law enforcement agency and refer the complaint to a law enforcement agency in that different jurisdiction.

(Added 2003, No. 155 (Adj. Sess.), § 3, eff. July 1, 2005.)

§ 2480l Verification of change of consumer’s address for preapproved offers of credit

A credit card issuer that mails an offer or solicitation to receive a credit card and, in response, receives a completed application for a credit card that lists an address that is substantively different from the address on the offer or solicitation shall make a commercially reasonable attempt to verify the change of address, which may include checking addresses on other open accounts.

(Added 2003, No. 155 (Adj. Sess.), § 3, eff. July 1, 2005.)

§ 2480m Limitations on use of Social Security numbers

Prior to posting or requiring the posting of a document in a place of general public circulation, an agency, board, department, commission, committee, branch, instrumentality, or authority of the State, or an agency, board, committee, department, branch, instrumentality, commission, or authority of any political subdivision of the State shall take all reasonable steps to redact any Social Security numbers from the document. Files and records made available to the public in accordance with and pursuant to 24 V.S.A. § 1165 are not considered posted in a place of general public circulation for the purposes of this section.

(Added 2003, No. 155 (Adj. Sess.), § 3, eff. July 1, 2005.)

§ 2480n Credit report files of deceased persons

(a) An executor, administrator, or other person authorized to act on behalf of an estate of a deceased person may request that a credit reporting agency indicate on the deceased person’s credit reporting file that the person is deceased. The credit reporting agency shall indicate on the deceased person’s credit reporting file that the person is deceased within five business days of receipt of the following documentation from the executor, administrator, or other person authorized to act on behalf of the estate of the deceased person:

(1) a certificate of death, or a certificate of appointment, letters testamentary, or other order from the Probate Division of the Superior Court authorizing the executor, administrator, or other person to act on behalf of the estate of the deceased person; and

(2) a request to indicate on the deceased person’s credit reporting file that the person is deceased.

(b) The credit reporting agency may remove the indication placed on the person’s file pursuant to subsection (a) of this section if the credit reporting agency finds that the indication was placed on the person’s file through material misrepresentation of fact. If the credit reporting agency intends to remove the indication pursuant to this subsection, the credit reporting agency shall notify the executor, administrator, or other person authorized to act on behalf of the estate in writing prior to removing the indication.

(Added 2003, No. 155 (Adj. Sess.), § 3, eff. July 1, 2005; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.)

Subchapter 4 Prevention of Credit Card Company Unfair Business Practices

§ 2480o Definitions

As used in this subchapter:

(1) “Electronic payment system” means an entity that directly or through licensed members, processors, or agents provides the proprietary services, infrastructure, and software that route information and data to facilitate transaction authorization, clearance, and settlement, and that merchants are required to access in order to accept a specific brand of general-purpose credit cards, charge cards, debit cards, or stored-value cards as payment for goods and services.

(2) “Merchant” means a person or entity that, in Vermont:

(A)(i) does business; or

(ii) offers goods or services for sale; and

(B) has a physical presence.

(Added 2009, No. 116 (Adj. Sess.), § 2, eff. Jan. 1, 2011.)

§ 2480p Electronic payment systems

With respect to transactions involving Vermont merchants, no electronic payment system may directly or through any agent, processor, or member of the system:

(1) impose any requirement, condition, penalty, or fine in a contract with a merchant to inhibit the ability of any merchant to provide a discount or other benefit for payment through the use of a card of another electronic payment system, cash, check, debit card, stored-value card, charge card, or credit card rather than another form of payment;

(2) impose any requirement, condition, penalty, or fine in a contract with a merchant to prevent the ability of any merchant to set a minimum dollar value of no more than $10.00 for its acceptance of a form of payment, provided that if a minimum dollar value is set by a merchant, it shall be prominently displayed and printed in not less than 16-point boldface type at the point of sale;

(3) impose any requirement, condition, penalty, or fine in a contract with a merchant to inhibit the ability of any merchant to decide to accept an electronic payment system at one or more of its locations but not at others.

(Added 2009, No. 116 (Adj. Sess.), § 2, eff. Jan. 1, 2011.)

§ 2480q Penalties

(a) The following penalties shall apply to violations of this subchapter:

(1) Any electronic payment system found to have violated section 2480p of this subchapter shall reimburse all affected merchants for all fines related to the prohibitions described in section 2480p of this subchapter that were collected from affected merchants directly or through any agent, processor, or member of the system during the period of time in which the electronic payment system was in violation and shall be liable for a civil penalty of $10,000.00 per fine levied in violation of section 2480p of this subchapter.

(2) Any merchant whose rights under this subchapter have been violated may maintain a civil action for damages or equitable relief as provided for in this section, including attorney’s fees, if any.

(3) A violation of section 2480p of this subchapter shall be deemed a violation of section 2453 of this title. The Attorney General has the same authority to conduct civil investigations, enter into assurances of discontinuance, and bring civil actions as provided under subchapter 1 of this chapter.

(b) These penalties shall not apply to entities acting exclusively as agents, processors, or members that are not electronic payment systems.

(Added 2009, No. 116 (Adj. Sess.), § 2, eff. Jan. 1, 2011; amended 2011, No. 109 (Adj. Sess.), § 2, eff. May 8, 2012; 2011, No. 136 (Adj. Sess.), § 1a, eff. May 18, 2012.)

§ 2480r Severability

If any provision of this subchapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this subchapter that can be given effect without the invalid provision or application, and, to this end, the provisions of this subchapter are severable.

(Added 2009, No. 116 (Adj. Sess.), § 2, eff. Jan. 1, 2011.)

Subchapter 5 Transfers of Structured Settlements

§ 2480aa Legislative intent; public policy

Structured settlement agreements, which provide for payments to a person over a period of time, are often used in the settlement of actions such as personal injury or medical claims and serve a number of valid purposes, including protection of persons from economic victimization and ensuring a person’s ability to provide for his or her future needs and obligations. It is the policy of this State that such agreements, which have often been approved by a court, should not be set aside lightly or without good reason.

(Added 2011, No. 168 (Adj. Sess.), § 1.)

§ 2480bb Definitions

In this subchapter:

(1) “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement.

(2) “Dependents” includes a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony.

(3) “Discounted present value” means the present value of future payments determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the U.S. Internal Revenue Service.

(4) “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration.

(5) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser meeting all of the following requirements:

(A) the advisor is engaged by the payee to render advice concerning the legal, tax, or financial implications of a structured settlement or a transfer of structured settlement payment rights;

(B) the adviser’s compensation for rendering independent professional advice is not affected by occurrence or lack of occurrence of a settlement transfer; and

(C) a particular adviser is not referred to the payee by the transferee or its agent, except that the transferee may refer the payee to a lawyer referral service or agency operated by a State or local bar association.

(6) “Interested parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations relating to the structured settlement payment rights that are the subject of the proposed transfer.

(7) “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under subdivision 2480cc(5) of this title.

(8) “Payee” means an individual who is receiving tax-free payments under a structured settlement and proposes to make a transfer of payment rights thereunder.

(9) “Periodic payments” includes both recurring payments and scheduled future lump sum payments.

(10) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of 26 U.S.C. § 130, as amended from time to time.

(11) “Settled claim” means the original tort claim resolved by a structured settlement.

(12) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim but does not refer to periodic payments in settlement of a workers’ compensation claim.

(13) “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement.

(14) “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement.

(15) “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where:

(A) the payee is domiciled in this State; or

(B) the structured settlement agreement was approved by a court in this State.

(16) “Terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of any court or other government authority that authorized or approved such structured settlement.

(17) “Transfer” means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration.

(18) “Transfer agreement” means the agreement providing for a transfer of structured settlement payment rights.

(19) “Transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including court filing fees, attorney’s fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary.

(20) “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer.

(Added 2011, No. 168 (Adj. Sess.), § 1.)

§ 2480cc Required disclosures to payee

Not less than 10 days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement in bold type in a size no smaller than 14 points setting forth:

(1) the amounts and due dates of the structured settlement payments to be transferred;

(2) the aggregate amount of such payments;

(3) the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” and the amount of the applicable federal rate used in calculating such discounted present value;

(4) the gross advance amount and the annual discount rate, compounded monthly, used to determine such figure;

(5) an itemized listing of all applicable transfer expenses, other than attorney’s fees and related disbursements payable by the payee in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements;

(6) the net advance amount;

(7) the amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee, as well as a description of any other financial penalties the payee might incur with the transferee as a result of such a breach; and

(8) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, at any time before the date on which a court enters a final order approving the transfer agreement.

(Added 2011, No. 168 (Adj. Sess.), § 1.)

§ 2480dd Approval of transfers of structured settlement payment rights

(a) No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express findings by the court that:

(1) the transfer is in the best interests of the payee taking into account the welfare and support of the payee’s dependents, considering all relevant factors, including:

(A) the payee’s ability to understand the financial terms and consequences of the transfer;

(B) the payee’s capacity to meet his or her financial obligations, including the potential need for future medical treatment;

(D) whether the transfer is fair and reasonable, considering the discount rate used to calculate the gross advance amount, the fees and expenses imposed on the payee, and whether the payee obtained more than one quote for the same or a substantially similar transfer.

(2)(A) the payee has been advised in writing by the transferee to seek independent professional advice regarding the financial advisability of the transfer and the other financial options available to the payee, if any, and:

(B)(i) that the payee has in fact received such advice; or

(ii) that such advice is unnecessary for good cause shown.

(3) the transfer does not contravene any applicable statute or the order of any court or other government authority.

(b) Any agreement to transfer future payments arising under a workers’ compensation claim is prohibited.

(c) At the hearing on the transfer the court may, in its sole discretion, continue the hearing and require the payee to seek independent professional advice if the court determines that obtaining such advice should be required based on the circumstances of the payee or the terms of the transaction. If the court determines that independent professional advice should be required, the court may order that the costs incurred by a payee for independent professional advice be paid by the transferee, the payee, or another party, provided that the amount to be paid by the transferee shall not exceed $1,500.00.

(Added 2011, No. 168 (Adj. Sess.), § 1; amended 2021, No. 20, § 22.)

§ 2480ee Effects of transfer of structured settlement payment rights

Following a transfer of structured settlement payment rights under this subchapter:

(1) the structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments;

(2) the transferee shall be liable to the structured settlement obligor and the annuity issuer:

(A) if the transfer contravenes the terms of the structured settlement for any taxes incurred by such parties as a consequence of the transfer; and

(B) for any other liabilities or costs, including reasonable costs and attorney’s fees, arising from compliance by such parties with the order of the court or arising as a consequence of the transferee’s failure to comply with this subchapter;

(3) neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and

(4) any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this subchapter.

(Added 2011, No. 168 (Adj. Sess.), § 1.)

§ 2480ff Procedure for approval of transfers

(a) An application under this subchapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the Civil Division of the Superior Court of the county in which the payee resides or in which the structured settlement obligor or the annuity issuer maintains its principal place of business or in any court that approved the structured settlement agreement.

(b) Not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under section 2480dd of this title, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for its authorization, including with such notice:

(1) a copy of any court order approving the settlement;

(2) a written description of the underlying basis for the settlement;

(3) a copy of the transferee’s application;

(4) a copy of the transfer agreement;

(5) a copy of the disclosure statement required under section 2480cc of this title;

(6) a listing of each of the payee’s dependents, together with each dependent’s age;

(7) a statement setting forth whether, to the best of the transferee’s knowledge after making a reasonable inquiry to the payee, the structured settlement obligor, and the annuity issuer, there have been any previous transfers or applications for transfer of any structured settlement payment rights of the payee and giving details of all such transfers or applications for transfer;

(8) to the best of the transferee’s knowledge after making reasonable inquiry to the payee, the structured settlement obligor, and the annuity issuer, a description of the remaining payments owed to the payee under the structured settlement if the court approves the proposed transfer, including the amount and dates or date ranges of the payments owed, provided that:

(A) the description may be filed under seal; and

(B) if the transferee’s knowledge concerning the remaining payments changes after the transferee submits a notice of the proposed transfer, the transferee may provide updated information to the court at the hearing;

(9) if available to the transferee after making a good faith request of the payee, the structured settlement obligor and the annuity issuer, the following documents, which shall be filed under seal:

(A) a copy of the annuity contract;

(B) a copy of any qualified assignment agreement; and

(10) either a certification from an independent professional advisor establishing that the advisor has given advice to the payee on the financial advisability of the transfer and the other financial options available to the payee or a written request that the court determine that such advice is unnecessary pursuant to subdivision 2480dd(a)(2) of this title; and

(11) notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which shall be not less than 15 days after service of the transferee’s notice, in order to be considered by the court.

(c) The transferee shall file a copy of the application with the Attorney General’s Office and a copy of the application and the payee’s Social Security number with the Office of Child Support and the Department of Taxes. The Offices and Department receiving copies pursuant to this section shall permit the copies to be filed electronically.

(d) The payee shall attend the hearing unless attendance is excused for good cause.

(Added 2011, No. 168 (Adj. Sess.), § 1; amended 2013, No. 29, § 67, eff. May 13, 2013; 2015, No. 23, § 143; 2015, No. 128 (Adj. Sess.), § B.1.)

§ 2480gg General provisions; construction

(a) The provisions of this subchapter may not be waived by any payee.

(b) Any transfer agreement entered into on or after July 1, 2012 by a payee who resides in this State shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this State. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee.

(c) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for:

(1) periodically confirming the payee’s survival; and

(2) giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death.

(d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of this subchapter.

(e) Nothing contained in this subchapter shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to July 1, 2012 is valid or invalid.

(f) Compliance with the requirements set forth in section 2480cc of this title and fulfillment of the conditions set forth in section 2480dd of this title shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for or any liability arising from noncompliance with such requirements or failure to fulfill such conditions.

(Added 2011, No. 168 (Adj. Sess.), § 1.)

§ 2481a Definitions

In this chapter:

(1) “Charitable sales promotion” means an advertising or sales campaign conducted in this State by a commercial coventurer in which it is represented to the public that an amount per unit of goods or services purchased or used by the public or an amount based on aggregate purchases or use by the public will benefit a charitable organization or charitable purpose. “Charitable sales promotion” does not include:

(A) a promotion in which 100 percent of the amount paid for the goods or services will benefit a charitable organization or charitable purpose;

(B) a promotion in which a commercial coventurer does not generate a net profit; or

(2) “Commercial coventurer” means a person who for profit is regularly and primarily engaged in trade or commerce in this State other than in connection with the raising of funds for charitable purposes and who represents to the public that an amount per unit of goods or services purchased or used by the public or an amount based on aggregate purchases or use by the public will benefit a charitable organization or charitable purpose.

(3) “Representation” means an advertisement, commercial, or other communication to the public in any medium.

(Added 2011, No. 136 (Adj. Sess.), § 2, eff. May 18, 2012.)

§ 2481b Required disclosures

Every commercial coventurer shall disclose the following information in a clear and conspicuous manner in close proximity to any representation, in connection with a charitable sales promotion, that an amount per unit of goods or services purchased or used by the public, or an amount based on aggregate purchases or use by the public, will benefit a charitable organization or charitable purpose:

(1) the name of the charitable organization or purpose that is to benefit from the charitable sales promotion;

(2) the amount per unit of goods or services purchased or used that will benefit the charitable organization or purpose or, if not known, the estimated amount, in either case expressed as a dollar amount or a percentage of the amount paid for the purchase or use, except that if the amount is based on aggregate purchases or use, that amount and how it will be calculated shall be disclosed; and

(3) any maximum amount that will benefit the charitable organization or purpose.

(Added 2011, No. 136 (Adj. Sess.), § 2, eff. May 18, 2012.)

§ 2481c Record-keeping

A commercial coventurer shall maintain records that are sufficient to demonstrate compliance with the requirements of this chapter and the disclosed terms of a charitable sales promotion.

(Added 2011, No. 136 (Adj. Sess.), § 2, eff. May 18, 2012.)

§ 2481d Violations

(a) A violation of this subchapter is deemed to be a violation of section 2453 of this title. This section shall not be construed to limit a commercial coventurer’s liability under any other law.

(b) The Attorney General has the same authority to make rules, conduct civil investigations, and bring civil actions with respect to the acts and practices of a commercial coventurer as is provided under subchapter 1 of this chapter.

(Added 2011, No. 136 (Adj. Sess.), § 2, eff. May 18, 2012.)

Subchapter 7 Unlicensed Loan Transactions

§ 2481w Unlicensed loan transactions

(a) In this subchapter:

(1) “Financial account” means a checking, savings, share, stored value, prepaid, payroll card, or other depository account.

(2) “Lender” means a person engaged in the business of making loans of money, credit, goods, or things in action and charging, contracting for, or receiving on any such loan interest, a finance charge, a discount, or consideration.

(3) “Process” or “processing” includes printing a check, draft, or other form of negotiable instrument drawn on or debited against a consumer’s financial account, formatting or transferring data for use in connection with the debiting of a consumer’s financial account by means of such an instrument or an electronic funds transfer, or arranging for such services to be provided to a lender.

(4) “Processor” means a person who engages in processing, as defined in subdivision (3) of this subsection. In this section, “processor” does not include an interbank clearinghouse.

(5) “Interbank clearinghouse” means a person that operates an exchange of automated clearinghouse items, checks, or check images solely between insured depository institutions.

(b) It is an unfair and deceptive act and practice in commerce for a lender directly or through an agent to solicit or make a loan to a consumer by any means unless the lender is in compliance with all provisions of 8 V.S.A. chapter 73 or is otherwise exempt from the requirements of 8 V.S.A. chapter 73.

(c) It is an unfair and deceptive act and practice in commerce for a processor, other than a federally insured depository institution, to process a check, draft, other form of negotiable instrument, or an electronic funds transfer from a consumer’s financial account in connection with a loan solicited or made by any means to a consumer unless the lender is in compliance with all provisions of 8 V.S.A. chapter 73 or is otherwise exempt from the requirements of 8 V.S.A. chapter 73.

(d) It is an unfair and deceptive act and practice in commerce for any person, including the lender’s financial institution as defined in 8 V.S.A. § 10202(5), but not including the consumer’s financial institution as defined in 8 V.S.A. § 10202(5) or an interbank clearinghouse as defined in subsection (a) of this section, to provide substantial assistance to a lender or processor when the person or the person’s authorized agent receives notice from a regulatory, law enforcement, or similar governmental authority, or knows from its normal monitoring and compliance systems, or consciously avoids knowing that the lender or processor is in violation of subsection (b) or (c) of this section, or is engaging in an unfair or deceptive act or practice in commerce.

(Added 2011, No. 136 (Adj. Sess.), § 8, eff. May 18, 2012; amended 2013, No. 199 (Adj. Sess.), § 26; 2019, No. 131 (Adj. Sess.), § 10.)

§ 2481x Entry fees; games not based on chance

Nothing in this chapter shall be construed to prohibit a person from requiring or paying any kind of entry fee, service charge, purchase, or similar consideration in order to enter, or continue to remain eligible for, a game of skill or other promotion that is not based on chance.

(Added 2013, No. 9, § 1.)

Subchapter 8 Internet Dating Services

§ 2482a Definitions

In this chapter:

(1) “Account change” means a change to a member’s password, username, e-mail address, or other contact information an Internet dating service uses to enable communications between members.

(2) “Banned member” means the member whose account or profile is the subject of a fraud ban.

(3) “Fraud ban” means barring a member’s account or profile from an Internet dating service because, in the judgment of the service, the member poses a significant risk of attempting to obtain money from other members through fraudulent means.

(4) “Internet dating service” means a person, or a division of a person, that is primarily in the business of providing dating services principally on or through the Internet.

(5) “Member” means a person who submits to an Internet dating service information required to access the service and who obtains access to the service.

(6) “Vermont member” means a member who provides a Vermont residential or billing address or zip code when registering with the Internet dating service.

(Added 2015, No. 128 (Adj. Sess.), § G.2, eff. May 24, 2016.)

§ 2482b Requirements for Internet dating services

(a) An Internet dating service shall disclose to all of its Vermont members known to have previously received and responded to an on-site message from a banned member:

(1) the user name, identification number, or other profile identifier of the banned member;

(2) the fact that the banned member was banned because, in the judgment of the Internet dating service, the banned member may have been using a false identity or may pose a significant risk of attempting to obtain money from other members through fraudulent means;

(3) that a member should never send money or personal financial information to another member; and

(4) a hyperlink to online information that clearly and conspicuously addresses the subject of how to avoid being defrauded by another member of an Internet dating service.

(b) The notification required by subsection (a) of this section shall be:

(1) clear and conspicuous;

(2) by e-mail, text message, or other appropriate means of communication; and

(3) sent within 24 hours after the fraud ban, or at a later time if the service has determined, based on an analysis of effective messaging, that a different time is more effective, but in no event later than three days after the fraud ban.

(c) An Internet dating service shall disclose in an e-mail, text message, or other appropriate means of communication, in a clear and conspicuous manner, within 24 hours after discovering an account change to a Vermont member’s account:

(1) the fact that information on the member’s account has been changed;

(2) a brief description of the change; and

(3) if applicable, how the member may obtain further information on the change.

(d)(1) A banned member from Vermont who is identified to one or more Vermont members pursuant to subsection (a) of this section shall have the right to challenge the ban by written complaint to the Office of the Vermont Attorney General.

(2) The Office of the Attorney General shall review a challenge brought by a banned member pursuant to this subsection and, if it finds that there was no reasonable basis for banning the member, shall require the Internet dating service to take reasonable corrective action to cure the erroneous ban.

(Added 2015, No. 128 (Adj. Sess.), § G.2, eff. Jan. 1, 2017.)

§ 2482c Limited immunity

(a) An Internet dating service shall not be liable to any person, other than the State of Vermont, or any agency, department, or subdivision of the State, for disclosing to any member that it has banned a member, the user name or identifying information of the banned member, or the reasons for the Internet dating service’s decision to ban such member in accordance with section 2482b of this title.

(b) An Internet dating service shall not be liable to any person, other than the State of Vermont, or any agency, department, or subdivision of the State, for the decisions regarding whether to ban a member, or how or when to notify a member pursuant to section 2482b of this title.

(c) This subchapter does not diminish or adversely affect the protections for Internet dating services that are afforded in 47 U.S.C. § 230 (Federal Communications Decency Act).

(Added 2015, No. 128 (Adj. Sess.), § G.2, eff. May 24, 2016.)

§ 2482d Violations

(a) A person who violates this subchapter commits an unfair and deceptive act in trade and commerce in violation of section 2453 of this title.

(b) The Attorney General has the same authority to make rules, conduct civil investigations, and enter into assurances of discontinuance as is provided under subchapter 1 of this chapter.

(Added 2015, No. 128 (Adj. Sess.), § G.2, eff. May 24, 2016.)

Subchapter 9 Credit Card Terminal Finance Leases

§ 2482h Solicitation; material misrepresentation

(a) As used in this subchapter, “credit card terminal” means physical equipment used at the point of sale to accept payment by a payment card, including a credit card, debit card, EBT card, prepaid card, or gift card.

(b) A person who solicits a finance lease for the use of a credit card terminal shall accurately disclose, orally and in writing:

(1) the nature and scope of his or her relationship to the person or persons who own, lease, service, and finance the credit card terminal and to the person or persons, if known, who provide services related to the credit card terminal, including whether he or she is an employee, independent contractor, or agent of one or more of those persons; and

(2) the terms of a finance lease and whether oral statements or commitments he or she makes to the prospective lessee while soliciting a finance lease are included in the terms of the finance lease and enforceable against a party to a finance lease.

(Added 2018, No. 4 (Sp. Sess.), § 1.)

§ 2482i Credit card terminal; finance lease provisions

The following provisions apply to a finance lease for the use of a credit card terminal:

(1) Plain language. The party primarily responsible for drafting the finance lease shall use plain language designed to be understood by ordinary consumers, presented in a reasonable format, typeface, and font.

(2) Finance lease; costs; disclosure. The finance lease shall specify:

(A) the terms of the finance lease;

(B) the total price of the finance lease;

(D) any other penalties, charges, or fees and the conditions under which they may be incurred;

(E) whether the consumer has the option to purchase the credit card terminal and if so, the purchase price and terms; and

(F) if the lessor does not offer the option to purchase the credit card terminal, a disclaimer that the lessee may be able to purchase the same or a similar credit card terminal from another source.

(3) Relationship to bundled processing services and fees.

(A) If the lessor of a credit card terminal or an affiliated business offers to deliver services for the terminal, including credit card processing services, the delivery of services shall be the subject of a service agreement between the service provider and the consumer that is separate from the finance lease.

(B) The service agreement shall specify:

(i) the terms governing the delivery of services;

(ii) the total price for the services;

(iii) the total monthly payment due, including any recurring monthly fees or charges, for the services;

(iv) any other penalties, charges, or fees and the conditions under which they may be incurred.

(C) If the lessor or its affiliated business offers a discount for bundling the credit card terminal finance lease with the delivery of services, the lessor shall separately state in the finance lease and the service agreement the information required in subdivisions (2) and (3)(B) of this section for each bundled and unbundled package offered.

(4) Contact information. The finance lease shall clearly and conspicuously identify the lessor of the credit card terminal and the name, mailing address, telephone number, e-mail address or website, and relationship to the lessor of:

(A) the person to whom the lessee is required to make payments for the credit card terminal;

(B) the person whom the lessee should contact with questions or problems concerning the credit card terminal;

(D) the sales representative or other person acting with actual or apparent authority on behalf of the lessor to solicit the finance lease.

(5) Prohibited provisions..

(A) If the judicial forum chosen by the parties to the lease is a forum that would not otherwise have jurisdiction over the lessee, the choice is not enforceable.

(B) A lessor shall not collect any charge or fee for business personal property tax on the credit card terminal unless the tax is actually imposed.

(6) Duty to retain and provide finance lease; right to cancel..

(A) A lessor shall provide a copy of the executed finance lease to the lessee and shall retain a written or electronic copy of the finance lease for not less than four years after the lease terminates.

(B) A lessee shall have the right to cancel a finance lease not later than 45 days after the lessor provides a copy of the executed finance lease to the lessee.

(i) the lessor may retain any payments made by the lessee after the lessor delivered a copy of the executed finance lease;

(ii) the lessor may impose a reasonable cancellation fee, not to exceed the total monthly payment amount specified in subdivision (2)(C) of this section.

(Added 2018, No. 4 (Sp. Sess.), § 1.)

§ 2482j Violations

A person who violates this subchapter commits an unfair and deceptive act in trade and commerce in violation of section 2453 of this title.

(Added 2018, No. 4 (Sp. Sess.), § 1.)

Subchapter 10 Credit Protection for Minors

§ 2483 Applicability

This subchapter does not apply to the use of a protected consumer’s credit report or record by:

(1) a person administering a credit file monitoring subscription service to which:

(A) the protected consumer has subscribed; or

(B) the protected consumer’s representative has subscribed on the protected consumer’s behalf;

(2) a person who, upon request from the protected consumer or the protected consumer’s representative, provides the protected consumer or the protected consumer’s representative with a copy of the protected consumer’s credit report;

(3) a check services or fraud prevention services company that issues:

(A) reports on incidents of fraud; or

(B) authorization for the purpose of approving or processing negotiable instruments, electronic funds transfers, or similar payment methods;

(4) a deposit account information service company that issues reports regarding account closures due to fraud, substantial overdrafts, automated teller machine abuse, or similar information regarding an individual to inquiring banks or other financial institutions for use only in reviewing an individual’s request for a deposit account at the inquiring bank or financial institution;

(5) an insurance company for the purpose of conducting the insurance company’s ordinary business;

(6) a consumer reporting agency that:

(A) only resells credit information by assembling and merging information contained in a database of another consumer reporting agency or multiple consumer reporting agencies; and

(B) does not maintain a permanent database of credit information from which new credit reports are produced; or

(7) a consumer reporting agency’s database or file that consists of information that:

(A) concerns and is used for:

(i) criminal record information;

(ii) fraud prevention or detection;

(iii) personal loss history information; or

(iv) employment, tenant, or individual background screening; and

(B) is not used for credit granting purposes.

(Added 2017, No. 179 (Adj. Sess.), § 5, eff. Jan. 1, 2019.)

§ 2483a Security freeze for protected consumer; time in effect

(a) A consumer reporting agency shall place a security freeze for a protected consumer if the protected consumer’s representative submits a request, including proper authority, to the address and in the manner specified by the consumer reporting agency.

(b) If a consumer reporting agency does not have a file that pertains to a protected consumer when the consumer reporting agency receives a request described in subsection (a) of this section, the consumer reporting agency shall create a record for the protected consumer.

(1) place a security freeze not later than 30 days after the date the agency receives a request pursuant to subsection (a) of this section; and

(2) not later than 10 business days after placing the freeze:

(A) send a written confirmation of the security freeze to the protected consumer or the protected consumer’s representative; and

(B) provide a unique personal identification number or password, other than a Social Security number, or another method of authentication that is equally or more secure than a PIN or password, to be used to authorize the release of the protected consumer’s credit for a specific party, parties, or period of time.

(d)(1) A credit reporting agency shall lift temporarily a protected consumer security freeze to allow access by a specific party or parties or for a specific period of time, upon a request from the protected consumer’s representative.

(2) The protected consumer’s representative shall submit the request to the address and in the manner specified by the consumer reporting agency.

(3) The request shall include:

(A) proper authority; and

(B) the unique personal identification number, password, or other method of authentication provided by the credit reporting agency pursuant to subsection (c) of this section.

(e) A credit reporting agency may develop procedures involving the use of telephone, fax, the Internet, or other electronic media to receive and process a request to lift temporarily a freeze on a credit report pursuant to subsection (d) of this section in an expedited manner.

(f) A credit reporting agency that receives a request to lift temporarily a freeze on a credit report pursuant to subsection (d) of this section shall comply with the request not later than three business days after receiving the request.

(g) A credit reporting agency shall remove or lift temporarily a freeze placed on a protected consumer’s credit report only in the following cases:

(1) Upon request, pursuant to subsection (d) or (j) of this section.

(2) If the protected consumer’s credit report was frozen due to a material misrepresentation of fact by the protected consumer or by his or her representative. If a credit reporting agency intends to remove a freeze upon a protected consumer’s credit report pursuant to this subdivision, the credit reporting agency shall notify the protected consumer and his or her representative in writing prior to removing the freeze on the consumer’s credit report.

(h) If a third party requests access to a credit report on which a protected consumer security freeze is in effect and this request is in connection with an application for credit or any other use and neither the consumer subject to the protected consumer security freeze nor the protected consumer’s representative allows the credit report to be accessed for that specific party or period of time, the third party may treat the application as incomplete.

(i) A credit reporting agency that receives a request to place a protected consumer security freeze pursuant to this section shall disclose to the protected consumer and his or her representative the process of placing and lifting temporarily a security freeze and the process for allowing access to information from the protected consumer’s credit report for a specific party, parties, or period of time while the protected consumer security freeze is in place.

(j)(1) A protected consumer security freeze shall remain in place until the credit reporting agency receives a request to remove the freeze from:

(A) the protected consumer’s representative; or

(B) the consumer who is subject to the protected consumer security freeze.

(2) A credit reporting agency shall remove a protected consumer security freeze within three business days after receiving a proper request for removal.

(3) The party requesting the removal of a protected consumer security freeze pursuant to subdivision (1) of this subsection shall submit the request to the address and in the manner specified by the consumer reporting agency.

(4) The request shall include:

(A) proper authority; and

(B) the unique personal identification number, password, or other method of authentication provided by the credit reporting agency pursuant to subsection (c) of this section.

(k) A credit reporting agency shall require proper identification of the person making a request to place or remove a protected consumer security freeze.

(l) The provisions of this section, including the protected consumer security freeze, do not apply to the use of a consumer report by the following:

(1) A person, or the person’s subsidiary, affiliate, agent, or assignee with which the protected consumer has or, prior to assignment, had an account, contract, or debtor-creditor relationship for the purposes of reviewing the account or collecting the financial obligation owing for the account, contract, or debt, or extending credit to a consumer with a prior or existing account, contract, or debtor-creditor relationship, subject to the requirements of section 2480e of this title. As used in this subdivision, “reviewing the account” includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.

(3) Any person acting pursuant to a court order, warrant, or subpoena.

(4) The Office of Child Support when investigating a child support case pursuant to Title IV-D of the Social Security Act (42 U.S.C. §§ 651-669b) and 33 V.S.A. § 4102.

(5) The Economic Services Division of the Department for Children and Families or the Department of Vermont Health Access or its agents or assignees acting to investigate welfare or Medicaid fraud.

(6) The Department of Taxes, municipal taxing authorities, or the Department of Motor Vehicles or any of their agents or assignees acting to investigate or collect delinquent taxes or assessments, including interest and penalties or unpaid court orders, or to fulfill any of their other statutory or charter responsibilities.

(7) A person’s use of credit information for the purposes of prescreening as provided by the federal Fair Credit Reporting Act.

(8) Any person for the sole purpose of providing a credit file monitoring subscription service to which the consumer has subscribed.

(9) A credit reporting agency for the sole purpose of providing a consumer with a copy of his or her credit report upon the consumer’s request.

(10) Any property and casualty insurance company for use in setting or adjusting a rate or underwriting for property and casualty insurance purposes.

(Added 2017, No. 179 (Adj. Sess.), § 5, eff. Jan. 1, 2019.)

§ 2483b Fees

A consumer reporting agency shall not charge a fee for any service performed under this subchapter.

(Added 2017, No. 179 (Adj. Sess.), § 5, eff. Jan. 1, 2019.)

Subchapter 11 Health Care Services

§ 2491 Findings; legislative intent

The General Assembly finds that:

(1) Telling the truth is how trained health care providers demonstrate respect for patients, foster trust, promote self-determination, and cultivate an environment where best practices in shared decision-making can flourish. Without veracity in information and communication, it is difficult for individuals to make informed, voluntary choices that are essential to one’s sense of personal agency and autonomy.

(2) Advertising strategies and educational information about health care options that lack transparency, use misleading or ambiguous terminology, misrepresent or obfuscate services provided, or provide factually inaccurate information are a form of manipulation that disrespects individuals, undermines trust, broadens health disparity, and can result in patient harm.

(Added 2023, No. 15, § 8, eff. May 10, 2023; amended 2025, No. 20, § 4, eff. May 13, 2025.)

§ 2492 Definition

As used in this subchapter, “health care services” means all supplies, care, and services of a medical, dental, behavioral health, mental health, substance use disorder treatment, surgical, psychiatric, therapeutic, diagnostic, preventative, rehabilitative, or supportive nature, including medication.

(Added 2023, No. 15, § 8, eff. May 10, 2023; amended 2025, No. 20, § 4, eff. May 13, 2025.)

§ 2493 Unfair and deceptive act

(a) It is an unfair and deceptive act and practice in commerce and a violation of section 2453 of this title for any person to disseminate or cause to be disseminated to the public any advertising about health care services or proposed services performed in this State that is untrue or clearly designed to mislead the public about the nature of the services provided. Advertising includes representations made directly to consumers; marketing practices; communication in any print medium, such as newspapers, magazines, mailers, or handouts; and any broadcast medium, such as television or radio, telephone marketing, or advertising over the internet such as through websites, web advertisements, and social media. For purposes of this chapter, advertising about health care services is an act in commerce.

(b) [Repealed.]

(c) The Attorney General has the same authority to make rules, conduct civil investigations, and bring civil actions with respect to violations of this section as provided under subchapter 1 of this chapter.

(Added 2023, No. 15, § 8, eff. May 10, 2023; amended 2025, No. 20, § 4, eff. May 13, 2025.)

Subchapter 12 Chemicals in Cosmetic and Menstrual Products [effective January 1, 2026]

§ 2494a Definitions [Effective January 1, 2026]

As used in this subchapter:

(1) “Bisphenols” means any member of a class of industrial chemicals that contain two hydroxyphenyl groups. Bisphenols are used primarily in the manufacture of polycarbonate plastic and epoxy resins.

(2) “Cosmetic product” means articles or a component of articles intended to be rubbed, poured, sprinkled, or sprayed on; introduced into; or otherwise applied to the human body or any part thereof for cleansing, promoting attractiveness, or improving or altering appearance, including those intended for use by professionals. “Cosmetic product” does not mean soap, dietary supplements, or food and drugs approved by the U.S. Food and Drug Administration.

(3) “Formaldehyde-releasing agent” means a chemical that releases formaldehyde.

(4) “Intentionally added” means the addition of a chemical in a product that serves an intended function in the product component.

(5) “Manufacturer” means any person engaged in the business of making or assembling a consumer product directly or indirectly available to consumers. “Manufacturer” excludes a distributor or retailer, except when a consumer product is made or assembled outside the United States, in which case a “manufacturer” includes the importer or first domestic distributor of the consumer product.

(6) “Menstrual product” means a product used to collect menstruation and vaginal discharge, including tampons, pads, sponges, menstruation underwear, disks, applicators, and menstrual cups, whether disposable or reusable.

(7) “Ortho-phthalates” means any member of the class of organic chemicals that are esters of phthalic acid containing two carbon chains located in the ortho position.

(8) “Perfluoroalkyl and polyfluoroalkyl substances” or “PFAS” means a class of fluorinated organic chemicals containing at least one fully fluorinated carbon atom.

(9) “Professional” means a person granted a license pursuant to 26 V.S.A. chapter 6 to practice in the field of barbering, cosmetology, manicuring, or esthetics.

(Added 2023, No. 131 (Adj. Sess.), § 1, eff. January 1, 2026.)

§ 2494b Prohibited chemicals in cosmetic and menstrual products [Effective January 1, 2026]

(a) A manufacturer shall not manufacture, sell, offer for sale, distribute for sale, or distribute for use in this State any cosmetic or menstrual product to which the following chemicals or chemical classes have been intentionally added in any amount:

(1) ortho-phthalates;

(2) PFAS;

(3) formaldehyde (CAS 50-00-0);

(4) methylene glycol (CAS 463-57-0);

(5) mercury and mercury compounds (CAS 7439-97-6);

(6) 1, 4-dioxane (CAS 123-91-1);

(7) isopropylparaben (CAS 4191-73-5);

(8) isobutylparaben (CAS 4247-02-3);

(9) lead and lead compounds (CAS 7439-92-1);

(10) asbestos;

(11) triclosan (CAS 3380-34-5);

(12) m-phenylenediamine and its salts (CAS 108-42-5);

[Subdivisions (a)(13) and (a)(14) effective until July 1, 2027; see also subdivisions (a)(13) and (a)(14) effective July 1, 2027 set out below.]

(13) o-phenylenediamine and its salts (CAS 95-54-5); and

(14) quaternium-15 (CAS 51229-78-8).

[Subdivisions (a)(13) through (a)(17) effective July 1, 2027; see also subdivisions (a)(13) and (a)(14) effective until July 1, 2027 set out above.]

(13) o-phenylenediamine and its salts (CAS 95-54-5);

(14) quaternium-15 (CAS 51229-78-8).

(15) styrene (CAS 100-42-5);

(16) octamethylcyclotetrasiloxane (CAS 556-67-2); and

(17) toluene (CAS 108-88-3).

(b) A cosmetic or menstrual product made through manufacturing processes intended to comply with this subchapter and containing a technically unavoidable trace quantity of a chemical or chemical class listed in subsection (a) of this section shall not be in violation of this subchapter on account of the trace quantity where it is caused by impurities of:

(1) natural or synthetic ingredients;

(2) the manufacturing process;

(3) storage; or

(4) migration from packaging.

(c) A manufacturer shall not knowingly manufacture, sell, offer for sale, distribute for sale, or distribute for use in this State any cosmetic or menstrual product that contains 1,4, dioxane at or exceeding 10 parts per million.

(d)(1) Pursuant to 3 V.S.A. chapter 25, the Department of Health may adopt rules prohibiting a manufacturer from selling, offering for sale, distributing for sale, or distributing for use a cosmetic or menstrual product to which formaldehyde releasing agents have been intentionally added and are present in any amount.

(2) The Department may only prohibit a manufacturer from selling, offering for sale, distributing for sale, or distributing for use a cosmetic or menstrual product in accordance with this subsection if the Department or at least one other state has determined that a safer alternative is readily available in sufficient quantity and at comparable cost and that the safer alternative performs as well as or better than formaldehyde releasing agents in a specific application of formaldehyde releasing agents to a cosmetic or menstrual product.

(3) Any rule adopted by the Department pursuant to this subsection may restrict formaldehyde releasing agents as individual chemicals or as a class of chemicals.

(Added 2023, No. 131 (Adj. Sess.), § 1, eff. January 1, 2026; amended 2023, No. 131 (Adj. Sess.), § 2, eff. July 1, 2027.)

§ 2494c Violations [Effective January 1, 2026]

(a) A violation of this subchapter is deemed to be a violation of section 2453 of this title.

(Added 2023, No. 131 (Adj. Sess.), § 1, eff. January 1, 2026.)

Subchapter 12A Pfas in Consumer Products [effective January 1, 2026]

§ 2494e Definitions [Effective January 1, 2026]

As used in this subchapter:

(1) “Adult mattress” means a mattress other than a crib or toddler mattress.

(2) “Aftermarket stain and water resistant treatments” means treatments for textile and leather consumer products used in residential settings that have been treated during the manufacturing process for stain, oil, and water resistance, but excludes products marketed or sold exclusively for use at industrial facilities during the manufacture of a carpet, rug, clothing, or shoe.

[Subdivision (3) effective until July 1, 2028; see also subdivision (3) effective July 1, 2028 set out below.]

(3) “Apparel” means any of the following:

(A) Clothing items intended for regular wear or formal occasions, including undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onesies, bibs, reusable diapers, footwear, and everyday uniforms for workwear. Clothing items intended for regular wear or formal occasions do not include clothing items for exclusive use by the U.S. Armed Forces, outdoor apparel for severe wet conditions, and personal protective equipment.

(B) Outdoor apparel.

[Subdivision (3) effective July 1, 2028; see also subdivision (3) effective until July 1, 2028 set out above.]

(3) “Apparel” means any of the following:

(B) Outdoor apparel.

(4) “Artificial turf” means a surface of synthetic fibers that is used in place of natural grass in recreational, residential, or commercial applications.

(5) “Cleaning product” means a compound intended for routine cleaning, including general purpose cleaners, bathroom cleaners, glass cleaners, carpet cleaners, floor care products, and hand soaps. “Cleaning product” does not mean an antimicrobial pesticide.

(6) “Cookware” means durable houseware items used to prepare, dispense, or store food, foodstuffs, or beverages and that are intended for direct food contact, including pots, pans, skillets, grills, baking sheets, baking molds, trays, bowls, and cooking utensils.

(7) “Dental floss” means a string-like device made of cotton or other fibers intended to remove plaque and food particles from between the teeth to reduce tooth decay. The fibers of the device may be coated with wax for easier use.

(8) “Fluorine treated container” means a fluorinated treated plastic container.

(9) “Incontinency protection product” means a disposable, absorbent hygiene product designed to absorb bodily waste for use by individuals 12 years of age and older.

[Subdivision (10) effective until July 1, 2027; see also subdivision (10) effective July 1, 2027 set out below.]

(10) “Intentionally added” means the addition of a chemical in a product that serves an intended function in the product component.

[Subdivision (10) effective July 1, 2027; see also subdivision (10) effective until July 1, 2027 set out above.]

(10) “Intentionally added PFAS” means PFAS added to a product regulated under this subchapter or one of its product components to provide a specific characteristic, appearance, or quality or to perform a specific function. “Intentionally added PFAS” also includes any degradation byproducts of PFAS or PFAS that are intentional breakdown products of an added chemical. For the purposes of this chapter, the use of PFAS as a processing agent, mold release agent, or intermediate is considered intentional introduction where PFAS are detected in the final covered product.

(11) “Juvenile product” means a product designed or marketed for use by infants and children under 12 years of age:

(A) including a baby or toddler foam pillow; bassinet; bedside sleeper; booster seat; changing pad; infant bouncer; infant carrier; infant seat; infant sleep positioner; infant swing; infant travel bed; infant walker; nap cot; nursing pad; nursing pillow; pacifier; play mat; playpen; play yard; polyurethane foam mat, pad, or pillow; portable foam nap mat; portable infant sleeper; portable hook-in chair; soft-sided portable crib; stroller; toddler mattress; and disposable, single-use diaper;

(B) excluding a children’s electronic product, such as a personal computer, audio and video equipment, calculator, wireless phone, game console, handheld device incorporating a video screen, or any associated peripheral such as a mouse, keyboard, power supply unit, or power cord; a medical device; or an adult mattress; and

(12) “Manufacturer” means any person engaged in the business of making or assembling a consumer product directly or indirectly available to consumers. “Manufacturer” excludes a distributor or retailer, except when a consumer product is made or assembled outside the United States, in which case a “manufacturer” includes the importer or first domestic distributor of the consumer product.

(13) “Medical device” has the same meaning given to “device” in 21 U.S.C. § 321.

(14) “Outdoor apparel” means clothing items intended primarily for outdoor activities, including hiking, camping, skiing, climbing, bicycling, and fishing.

(15) “Outdoor apparel for severe wet conditions” means outdoor apparel that are extreme and extended use products designed for outdoor sports experts for applications that provide protection against extended exposure to extreme rain conditions or against extended immersion in water or wet conditions, such as from snow, in order to protect the health and safety of the user and that are not marketed for general consumer use. Examples of extreme and extended use products include outerwear for offshore fishing, offshore sailing, whitewater kayaking, and mountaineering.

(16) “Perfluoroalkyl and polyfluoroalkyl substances” or “PFAS” means a class of fluorinated organic chemicals containing at least one fully fluorinated carbon atom.

(17) “Personal protective equipment” has the same meaning as in section 2494p of this title.

[Subdivision (18) effective until July 1, 2027; see also subdivision (18) effective July 1, 2027 set out below.]

(18) “Regulated perfluoroalkyl and polyfluoroalkyl substances” or “regulated PFAS” means:

(A) PFAS that a manufacturer has intentionally added to a product and that have a functional or technical effect in the product, including PFAS components of intentionally added chemicals and PFAS that are intentional breakdown products of an added chemical that also have a functional or technical effect in the product; or

(B) the presence of PFAS in a product or product component at or above 100 parts per million, as measured in total organic fluorine.

[Subdivision (18) effective July 1, 2027; see also subdivision (18) effective until July 1, 2027 set out above.]

(18) “Regulated perfluoroalkyl and polyfluoroalkyl substances” or “regulated PFAS” means:

(B) the presence of PFAS in a product or product component at or above 50 parts per million, as measured in total organic fluorine.

(19) “Rug or carpet” means a fabric marketed or intended for use as a floor covering.

(20) “Ski wax” means a lubricant applied to the bottom of snow runners, including skis and snowboards, to improve their grip and glide properties.

(21) “Textile” means any item made in whole or part from a natural, manmade, or synthetic fiber, yarn, or fabric, and includes leather, cotton, silk, jute, hemp, wool, viscose, nylon, or polyester. “Textile” does not include single-use paper hygiene products, including toilet paper, paper towels, tissues, or single-use absorbent hygiene products.

(22) “Textile articles” means textile goods of a type customarily and ordinarily used in households and businesses, and includes apparel, accessories, handbags, backpacks, draperies, shower curtains, furnishings, upholstery, bedding, towels, napkins, and table cloths. “Textile articles” does not include:

(A) a vehicle, as defined in 1 U.S.C. § 4, or its component parts;

(B) a vessel, as defined in 1 U.S.C. § 3, or its component parts;

(D) filtration media and filter products used in industrial applications, including chemical or pharmaceutical manufacturing and environmental control technologies;

(E) textile articles used for laboratory analysis and testing; and

(F) rugs or carpets.

(Added 2023, No. 131 (Adj. Sess.), § 3, eff. January 1, 2026; amended 2025, No. 54, § 1, multiple effective dates; 2025, No. 54, § 2, eff. July 1, 2027; 2025, No. 54, § 3, eff. July 1, 2028.)

§ 2494f Prohibition on PFAS in consumer products [Effective January 1, 2026]

(a) A manufacturer shall not manufacture, sell, offer for sale, distribute for sale, or distribute for use in the State the following consumer products to which PFAS have been intentionally added in any amount:

(1) aftermarket stain and water-resistant treatments;

(2) artificial turf;

[Subdivision (a)(3) effective July 1, 2027.]

(3) cleaning products;

[Subdivision (a)(4) effective July 1, 2028.]

(4) cookware;

[Subdivision (a)(5) effective July 1, 2027.]

(5) dental floss;

(6) incontinency protection products;

(7) juvenile products;

(8) residential rugs and carpets; or

(9) ski wax.

(b) A manufacturer shall not manufacture, sell, offer for sale, distribute for sale, or distribute for use in the State textiles or textile articles to which regulated PFAS have been intentionally added in any amount.

(c) The prohibitions under subsections (a) and (b) of this section shall not apply to the sale, offer for sale, distribution for sale, or distribution for use of any of the products listed under subsections (a) and (b) of this section that have been previously used by a consumer for the intended purpose of the product.

(Added 2023, No. 131 (Adj. Sess.), § 3, eff. January 1, 2026; amended 2025, No. 54, § 1, multiple effective dates.)

§ 2494g Fluorine treated containers [Effective July 1, 2027]

(a) A manufacturer shall not sell, offer for sale, distribute for sale, or distribute for use in the State a product listed under subdivisions 2494f(a)(1)–(9) of this title that does not contain intentionally added PFAS but that is sold, offered for sale, distributed for sale, or distributed for use in the State in a fluorine treated container.

(b) The prohibition under subsection (a) of this section shall not apply to the sale, offer for sale, distribution for sale, or distribution for use of a product that has been previously used by a consumer for the intended purpose of the product.

(c) Beginning on January 1, 2032, a manufacturer shall not manufacture, sell, offer for sale, distribute for sale, or distribute for use in the State a fluorine treated container or any consumer product in a fluorine treated container.

(Added 2025, No. 54, § 1, eff. July 1, 2027.)

§ 2494h Certificate of compliance [Effective January 1, 2026]

(a) The Attorney General may request a certificate of compliance from a manufacturer of a consumer product regulated under this subchapter. Within 60 days after receipt of the Attorney General’s request for a certificate of compliance, the manufacturer shall:

(1) provide the Attorney General with a certificate attesting that the manufacturer’s product or products comply with the requirements of this subchapter; or

(2) notify persons who are selling a product of the manufacturer’s in this State that the sale is prohibited because the product does not comply with this subchapter and submit to the Attorney General a list of the names and addresses of those persons notified.

(b) A manufacturer required to submit a certificate of compliance pursuant to this section may rely upon a certificate of compliance provided to the manufacturer by a supplier for the purpose of determining the manufacturer’s reporting obligations. A certificate of compliance provided by a supplier in accordance with this subsection shall be used solely for the purpose of determining a manufacturer’s compliance with this section.

(Added 2023, No. 131 (Adj. Sess.), § 3, eff. January 1, 2026; 2025, No. 54, § 1, eff. January 1, 2026.)

§ 2494i Violations [Effective January 1, 2026]

(a) A violation of this subchapter is deemed to be a violation of section 2453 of this title.

(Added 2023, No. 131 (Adj. Sess.), § 3, eff. January 1, 2026; 2025, No. 54, § 1, eff. January 1, 2026.)

Subchapter 12B Pfas in Firefighting Agents and Equipment [effective January 1, 2026]

§ 2494p Definitions [Effective January 1, 2026]

As used in this subchapter:

(1) “Class B firefighting foam” means chemical foams designed for flammable liquid fires.

(2) “Intentionally added PFAS” means PFAS added to a product regulated under this subchapter or one of its product components to provide a specific characteristic, appearance, or quality or to perform a specific function. “Intentionally added PFAS” also includes any degradation byproducts of PFAS or PFAS that are intentional breakdown products of an added chemical. For the purposes of this chapter, the use of PFAS as a processing agent, mold release agent, or intermediate is considered intentional introduction where PFAS are detected in the final covered product.

(3) “Manufacturer” means any person engaged in the business of making or assembling a consumer product directly or indirectly available to consumers. “Manufacturer” excludes a distributor or retailer, except when a consumer product is made or assembled outside the United States, in which case a “manufacturer” includes the importer or first domestic distributor of the consumer product.

(4) “Municipality” means any city, town, incorporated village, town fire district, or other political subdivision that provides firefighting services pursuant to general law or municipal charter.

(5) “Perfluoroalkyl and polyfluoroalkyl substances” or “PFAS” means a class of fluorinated organic chemicals containing at least one fully fluorinated carbon atom.

(6) “Personal protective equipment” means clothing designed, intended, or marketed to be worn by firefighting personnel in the performance of their duties, designed with the intent for use in fire and rescue activities, and includes jackets, pants, shoes, gloves, helmets, and respiratory equipment.

(7) “Terminal” means an establishment primarily engaged in the wholesale distribution of crude petroleum and petroleum products, including liquefied petroleum gas from bulk liquid storage facilities.

(Added 2023, No. 131 (Adj. Sess.), § 6, eff. January 1, 2026; amended 2025, No. 54, § 8, eff. January 1, 2026.)

§ 2494q Prohibition of certain class B firefighting foam [Effective January 1, 2026]

A person, municipality, or State agency shall not discharge or otherwise use for training or testing purposes class B firefighting foam that contains intentionally added PFAS.

(Added 2023, No. 131 (Adj. Sess.), § 6, eff. January 1, 2026.)

§ 2494r Restriction on manufacture, sale, and distribution; exceptions [Effective January 1, 2026]

(a) A manufacturer of class B firefighting foam shall not manufacture, sell, offer for sale, or distribute for sale or use in this State class B firefighting foam to which PFAS have been intentionally added.

(b) A person operating a terminal who seeks to purchase class B firefighting foam containing intentionally added PFAS for the purpose of fighting emergency class B fires may apply to the Department of Environmental Conservation for a temporary exemption from the restrictions on the manufacture, sale, offer for sale, or distribution of class B firefighting foam for use at a terminal. An exemption shall not exceed one year. The Department of Environmental Conservation, in consultation with the Department of Health, may grant an exemption under this subsection if the applicant provides:

(1) clear and convincing evidence that there is not a commercially available alternative that:

(A) does not contain intentionally added PFAS; and

(B) is capable of suppressing a large atmospheric tank fire or emergency class B fire at the terminal;

(2) information on the amount of class B firefighting foam containing intentionally added PFAS that is annually stored, used, or released at the terminal;

(3) a report on the progress being made by the applicant to transition at the terminal to class B firefighting foam that does not contain intentionally added PFAS; and

(4) an explanation of how:

(A) all releases of class B firefighting foam containing intentionally added PFAS shall be fully contained at the terminal; and

(B) existing containment measures prevent firewater, wastewater, runoff, and other wastes from being released into the environment, including into soil, groundwater, waterways, and stormwater.

(c) Nothing in this section shall prohibit a terminal from providing class B firefighting foam in the form of aid to another terminal in the event of a class B fire.

(Added 2023, No. 131 (Adj. Sess.), § 6, eff. January 1, 2026.)

§ 2494s Sale of personal protective equipment containing PFAS [Effective January 1, 2026]

[Subsection (a) effective January 1, 2026 until July 1, 2029; see also subsection (a) effective July 1, 2029 set out below.]

(a) A manufacturer or other person that sells firefighting equipment to any person, municipality, or State agency shall provide written notice to the purchaser at the time of sale, citing to this subchapter, if the personal protective equipment contains PFAS. The written notice shall include a statement that the personal protective equipment contains PFAS and the reason PFAS are added to the equipment.

[Subsection (a) effective July 1, 2029; see also subsection (a) effective January 1, 2026 until July 1, 2029 set out above.]

(a) A manufacturer or other person that sells firefighting equipment to any person, municipality, or State agency shall not sell, offer for sale, distribute for sale, or distribute for use in this State any personal protective equipment to which PFAS have been intentionally added.

[Subsection (b) effective January 1, 2026 until July 1, 2029; see also subsection (b) effective July 1, 2029 until July 1, 2032 set out below.]

(b) The manufacturer or person selling personal protective equipment and the purchaser of the personal protective equipment shall retain the notice for at least three years from the date of the transaction.

[Subsection (b) effective July 1, 2029 until July 1, 2032; see also subsection (b) effective January 1, 2026 until July 1, 2029 set out above.]

(b) The prohibitions under subsection (a) of this section shall not apply to personal protective equipment that is a respirator or respirator protection equipment, provided that a manufacturer of a respirator or respirator protection equipment shall provide written notice to the purchaser at the time of sale, citing to this subchapter if the respirator or respirator protection equipment contains PFAS. The written notice shall include a statement that the respirator or respirator protection equipment contains PFAS and the reason PFAS are added to the equipment. The manufacturer or person selling respirator or respirator protection equipment and the purchaser of the respirator or respirator protection equipment shall retain the notice for at least three years from the date of the transaction.

[Subsection (b) repealed effective July 1, 2032.]

(b) [Repealed.]

(Added 2023, No. 131 (Adj. Sess.), § 6, eff. January 1, 2026; amended 2025, No. 54, § 9, eff. July 1, 2029; 2025, No. 54, § 10, eff. July 1, 2032.)

§ 2494t Notification; recall of prohibited products [Effective January 1, 2026]

(a) A manufacturer of class B firefighting foam containing intentionally added PFAS shall provide written notice to persons that sell the manufacturer’s products in this State about the restrictions imposed by this subchapter not less than one year prior to the effective date of the restrictions.

(b) Unless a class B firefighting foam containing intentionally added PFAS is intended for use at a terminal and the person operating a terminal holds a temporary exemption pursuant to subsection 2494r(b) of this title, a manufacturer that produces, sells, or distributes a class B firefighting foam containing intentionally added PFAS shall:

(1) recall the product and reimburse the retailer or any other purchaser for the product; and

(2) issue either a press release or notice on the manufacturer’s website describing the product recall and reimbursement requirement established in this subsection.

(Added 2023, No. 131 (Adj. Sess.), § 6, eff. January 1, 2026.)

§ 2494u Certificate of compliance [Effective January 1, 2026]

(a) The Attorney General may request a certificate of compliance from a manufacturer of class B firefighting foam or firefighting personal protective equipment. Within 60 days after receipt of the Attorney General’s request for a certificate of compliance, the manufacturer shall:

(1) provide the Attorney General with a certificate attesting that the manufacturer’s product or products comply with the requirements of this subchapter; or

(Added 2023, No. 131 (Adj. Sess.), § 6, eff. January 1, 2026.)

§ 2494v Violations [Effective January 1, 2026]

(a) A violation of this subchapter is deemed to be a violation of section 2453 of this title.

(Added 2023, No. 131 (Adj. Sess.), § 6, eff. January 1, 2026.)

Subchapter 12C Chemicals of Concern in Food Packaging [effective January 1, 2026]

§ 2494w Definitions [Effective January 1, 2026]

As used in this subchapter:

(2) “Department” means the Department of Health.

(3) “Food package” or “food packaging” means a package or packaging component that is intended for direct food contact.

(4) “Intentionally added” means the addition of a chemical in a product that serves an intended function in the product component.

(5) “Ortho-phthalates” means any member of the class of organic chemicals that are esters of phthalic acid containing two carbon chains located in the ortho position.

(6) “Package” means a container providing a means of marketing, protecting, or handling a product and shall include a unit package, an intermediate package, and a shipping container. “Package” also means unsealed receptacles, such as carrying cases, crates, cups, pails, rigid foil and other trays, wrappers and wrapping films, bags, and tubs.

(7) “Packaging component” means an individual assembled part of a package, such as any interior or exterior blocking, bracing, cushioning, weatherproofing, exterior strapping, coatings, closures, inks, and labels, and disposable gloves used in commercial or institutional food service.

(8) “Perfluoroalkyl and polyfluoroalkyl substances” or “PFAS” means a class of fluorinated organic chemicals containing at least one fully fluorinated carbon atom.

(Added 2023, No. 131 (Adj. Sess.), § 7, eff. January 1, 2026.)

§ 2494x Food packaging [Effective January 1, 2026]

(a) A manufacturer shall not manufacture, sell, offer for sale, distribute for sale, or distribute for use in this State a food package to which PFAS have been intentionally added and are present in any amount.

(b)(1) Pursuant to 3 V.S.A. chapter 25, the Department may adopt rules prohibiting a manufacturer, supplier, or distributor from selling or offering for sale or for promotional distribution a food package or the packaging component of a food package to which bisphenols have been intentionally added and are present in any amount. The Department may exempt specific chemicals within the bisphenol class when clear and convincing evidence suggests they are not endocrine-active or otherwise toxic.

(2) The Department may only prohibit a manufacturer, supplier, or distributor from selling or offering for sale or for promotional distribution a food package or the packaging component of a food package in accordance with this subsection if the Department or at least one other state has determined that a safer alternative is readily available in sufficient quantity and at a comparable cost and that the safer alternative performs as well as or better than bisphenols in a specific application of bisphenols to a food package or the packaging component of a food package.

(3) If the Department prohibits a manufacturer, supplier, or distributor from selling or offering for sale or for promotional distribution a food package or the packaging component of a food package in accordance with this subsection, the prohibition shall not take effect until two years after the Department adopts the rules.

(c) A manufacturer shall not manufacture, sell, offer for sale, distribute for sale, or distribute for use in this State a food package that includes inks, dyes, pigments, adhesives, stabilizers, coatings, plasticizers, or any other additives to which ortho-phthalates have been intentionally added and are present in any amount.

(d) This section shall not apply to the sale or resale of used products.

(Added 2023, No. 131 (Adj. Sess.), § 7, eff. January 1, 2026.)

§ 2494y Certificate of compliance [Effective January 1, 2026]

(a) The Attorney General may request a certificate of compliance from a manufacturer of food packaging. Within 60 days after receipt of the Attorney General’s request for a certificate of compliance, the manufacturer shall:

(1) provide the Attorney General with a certificate attesting that the manufacturer’s product or products comply with the requirements of this subchapter; or

(Added 2023, No. 131 (Adj. Sess.), § 7, eff. January 1, 2026.)

§ 2494z Violations [Effective January 1, 2026]

(a) A violation of this subchapter is deemed to be a violation of section 2453 of this title.

(Added 2023, No. 131 (Adj. Sess.), § 7, eff. January 1, 2026.)

Chapter 65 Agricultural Finance Leases

§§ 2481- 2492 Redesignated

[Redesignated]

2011, No. 136 (Adj. Sess.), § 1, eff. May 18, 2012. [Repealed]

Chapter 67 Pay-per-Call Services

§ 2501 Definitions

As used in this chapter:

(1) “Caller” means a person who accesses a pay-per-call service.

(2) “Interactive program” means a pay-per-call program that allows callers to choose between options or to communicate with other callers.

(3) “Pay-per-call service” means any passive, interactive, polling, conference, or other similar audiotext service that is accessed through a telephone number and that generates an audiotext service related fee billed to a subscriber. “Pay-per-call service” does not include any conference service the price of which is established pursuant to a tariff approved by a regulatory agency.

(4) “Advertisements and promotions” include all forms of solicitation directed at prospective callers of pay-per-call services, including mailings and advertisements in newspapers and magazines and on radio and television.

(5) “Sponsor” means an individual, corporation, association, partnership, or other entity that sells or offers to sell a pay-per-call service to a person in this State and on whose behalf charges are billed, but shall not include a public utility regulated by the State or the Federal Communications Commission or an interexchange carrier which provides transport or billing and collection services for a pay-per-call service unless the public utility or interexchange carrier actually produces or advertises the pay-per-call service.

(Added 1993, No. 99, § 2; amended 2021, No. 20, § 23.)

§ 2502 Requirements for disclosures in advertisements

(a) A sponsor shall include in all advertisements or promotions in this State for pay-per-call services the following disclosures in a clear and conspicuous manner:

(1) an accurate description of the message content and all material terms and conditions associated with the service;

(2) the total price of the service, in a typeface and size as large and conspicuous as is the number to be called and displayed immediately adjacent to the number to be called, including:

(A) the initial flat rate charge, if any;

(B) the per-minute charge, if any;

(D) any other charges, if any; and

(E) where charges are assessed based in whole or in part on the length of the call, the average duration of a call to the service, or if the service is less than 24 hours old, a good faith estimate of the average duration based on the average duration of the similar services;

(3) the sponsor’s name, address, and customer service number.

(b) A sponsor shall include in all advertisements or promotions in this State for pay-per-call services directed at or likely to be of interest to minors a clear and conspicuous notice that parental consent must be obtained before a minor may dial the number.

(c) No sponsor may use the word “free” or similar terms to describe the pay-per-call service in any advertisement or promotion in this State.

(Added 1993, No. 99, § 2.)

§ 2503 Requirements for preambles

A sponsor of pay-per-call services for which the charge to the caller may in any case exceed $2.00 shall commence the service with a disclosure message or “preamble” provided at no charge to the caller, clearly indicating the following information:

(1) an accurate description of the service;

(2) the total price of the service, including:

(A) all per-call charges; and

(B) if the call is billed on a usage-sensitive basis, all rates by minute or other unit of time, any minimum charges and the total cost for calls to that program if the duration of the program can be determined;

(3) that billing will commence only after a specific identified event following the disclosure message, such as a signal tone, followed by a reasonable period of time within which the caller may disconnect before that event;

It shall be an unlawful practice for a sponsor to sell or offer for sale pay-per-call services that involve unsolicited notification to prospective callers that they are entitled to a prize, award, or other thing of value and with respect to which they are requested to access a pay-per-call service unless:

(1) all advertisements and promotions for such services include:

(A) an accurate description of all material terms, conditions, and rules regarding the prospective caller’s eligibility for the prize or prizes;

(B) a statement as to whether all prizes will be awarded and the odds of winning each prize;

(C) the identity and true market value of the prize or prizes to which the caller is entitled, and a complete description of each prize including any related expenses which will be the responsibility of the winner; and

(D) a description of how to claim the prize without calling the pay-per-call service or incurring any other cost;

(2) the sponsor provides a full refund to any caller who requests one;

(3) the identity and value of the prize or prizes is not determined by chance.

(Added 1993, No. 99, § 2.)

§ 2508 Children’s program services

(a) It shall be an unlawful practice for a sponsor to sell or offer for sale pay-per-call services directed at children age 12 or under.

(b) The advertisement or promotion of pay-per-call services on television during a time slot used by television stations to air programming for children age 12 or under shall give rise to a rebuttable presumption of a violation of this section.

(c) It shall be an unlawful practice for a sponsor to sell or offer for sale pay-per-call services directed at children under the age of 18 where the service, or any advertisement or promotion for it:

(1) contains an imperative statement, including language such as “call now” or “you must call”;

(2) contains an embedded message to call other pay-per-call numbers;

(3) requests that the caller provide his or her name, address, telephone number, or other identifying information;

(4) requests that the caller make an additional purchase in order for the complete message to be received;

(5) contains a message soliciting copies of phone bills; or

(6) requires the viewing of a television program to obtain the complete message.

(d) It shall be an unlawful practice for a sponsor to sell or offer for sale pay-per-call services directed at children under the age of 18 unless the sponsor provides a full credit upon request for any call by a child that was not authorized by the child’s parent.

(e) It shall be an unlawful practice for a sponsor to sell or offer for sale pay-per-call services directed at children under the age of 18 for which the total charges per call to the customer exceed $4.00.

(Added 1993, No. 99, § 2.)

§ 2509 Charitable solicitations

It shall be an unlawful practice for a sponsor to sell or offer for sale pay-per-call services that involve charitable fundraising either directly or indirectly by solicitation of donations or through the sale of information, goods, or services unless:

(1) all advertisements and promotions for the service include the identity of the nonprofit tax-exempt charity or charitable organization for which the funds are being raised;

(2) the sponsor gives callers the right to cancel any pledge made by virtue of the telephone call, whether it is characterized as a donation or as the cost of the call itself, and notifies callers of that right as part of the service; and

(3) the sponsor and charity or charitable organization have complied with all applicable federal and State laws governing charitable fundraising.

(Added 1993, No. 99, § 2.)

§ 2510 Pay-per-call fulfillment services

It shall be an unlawful practice for a sponsor to sell or offer for sale pay-per-call services that involve provision of value-added information, not product sales, with a supplemental tangible item sent free of charge to the customer after the completion of the call unless all advertisements and promotions for such services include:

(1) an 800 number or business name and full address for callers to obtain additional information or to follow up on items not yet received; and

(2) the true market value of the item to be sent free of charge and a complete and accurate description of the item.

(Added 1993, No. 99, § 2.)

§ 2511 Automatic dialing devices

(2) report any amount due for the service to any consumer reporting agency as defined in the Fair Credit Reporting Act, 15 U.S.C. § 1681a(f).

(c) The Attorney General has the same authority to make rules, conduct civil investigations, and bring civil actions with respect to acts and practices governed by this chapter as is provided under chapter 63, subchapter 1 of this title.

(d) A caller has the same rights with respect to any act or practice governed by this chapter as a consumer has under section 2461 of this title.

(Added 1993, No. 99, § 2.)

Chapter 68 Charitable Gift Annuities

§ 2517 Charitable gift annuities

(a) Definitions. As used in this section:

(1) “Annuity obligation” means the present value of the charity’s payment obligation to the donor as calculated by the Internal Revenue Code actuarial tables.

(2) “Charitable gift annuity” means an annuity described in 26 U.S.C. § 501(m)(5) and 514(c)(5).

(3) “Charitable organization” means an entity described either in 26 U.S.C. § 501(c)(3) or 170(c).

(4) “Qualified charitable organization” means a charitable organization that:

(A) has a minimum of $300,000.00 in unrestricted cash, cash equivalents, or publicly traded securities, in addition to the assets necessary to fund the charity’s outstanding annuity obligations; and

(B) has been in continuous operation for at least three years, or is a successor or affiliate of a charitable organization that has been in continuous operation for at least three years.

(b) Limitation. Charitable gift annuities may be issued and maintained only by a qualified charitable organization.

(c) Notice to donor. When entering into an agreement for a charitable gift annuity, the charitable organization shall disclose to the donor in writing in the annuity agreement, in print no smaller than that used in the annuity agreement generally, that a charitable gift annuity is not insurance under the laws of this State and is not subject to regulation as insurance by the Department of Financial Regulation or protected by an insurance guaranty association. The following information shall also be similarly disclosed:

(1) the intervals at which payment is to be made;

(2) when payments are scheduled to begin; and

(3) the amount of each payment.

(d) Effect of failure to provide notice. The failure of a charitable organization to comply with the notice requirements imposed under subsection (c) of this section does not prevent a charitable gift annuity that otherwise meets the requirements of this section from constituting a valid charitable gift annuity. The Attorney General may enforce the performance of the requirements of subsection (c) of this section by sending a letter by certified mail, return receipt requested, demanding that the charitable organization comply with the requirements of subsection (c) of this section. A charitable organization that fails to comply with subsection (c) of this section shall be subject to a civil penalty not to exceed $1,000.00 for each noncomplying agreement, up to a maximum total penalty of $10,000.00.

(Added 2001, No. 37, § 2; amended 2021, No. 20, § 24.)

§ 2518 Enforcement and remedies

(a) Enforcement. The Attorney General shall enforce the provisions of section 2517 of this title and may bring an action in the name of the State against a charitable organization for noncompliance, to restrain by temporary or permanent injunction the noncompliance, or to dissolve a domestic corporation or revoke the certificate of authority granted a foreign corporation. The action may be brought in the Superior Court of the county in which such person resides, has a place of business, or is doing business. Said courts are authorized to issue temporary or permanent injunctions to restrain and prevent violations of this chapter, such injunctions to be issued without bonds, or to dissolve, or revoke the certificate of authority of, a corporation.

(b) Civil penalties; restitution. In addition to subsection (a) of this section, the Attorney General may request and the court is authorized to render any other temporary or permanent relief, or both, as may be in the public interest, including the imposition of a civil penalty of not more than $10,000.00 for each violation of subsection 2517(b) of this title and an order for restitution for each violation of subsection 2517(b) of this title in the amount of the present value of the remaining annuity obligation on behalf of an aggrieved donor.

(c) Assurance of discontinuance. In any case where the Attorney General has authority to institute an action or proceeding under this section, in lieu thereof he or she may accept an assurance of discontinuance of any method, act, or practice in violation of section 2517 of this title from any person alleged to be engaged or to have been engaged in such violation. Such assurance may include a stipulation for affirmative action by such person, payment of a civil penalty, or of an amount to be held in escrow pending the outcome of an action or as restitution to aggrieved donors, or any of the above. Any such assurance of discontinuance shall be in writing and be filed with the Washington Superior Court. Evidence of a violation of such assurance shall be prima facie proof of a violation of section 2517 of this title.

(d)(1) Civil investigation. Whenever the Attorney General has reason to believe any person to be or to have been in violation of section 2517 of this title, the Attorney General may examine or cause to be examined by any agent or representative designated by the Attorney General for that purpose, any books, records, papers, memoranda, and physical objects of whatever nature bearing upon each alleged violation, and may demand written responses under oath to questions bearing upon each alleged violation. The Attorney General may require the attendance of such person or of any other person having knowledge in the county where such person resides or has a place of business, or in Washington County if such person is a nonresident or has no place of business within the State, and may take testimony and require proof material for his or her information, and may administer oaths or take acknowledgement in respect of any book, record, paper, or memorandum. The Attorney General shall serve notice of the time, place, and cause of such examination or attendance, or notice of the cause of the demand for written responses, at least 10 days prior to the date of such examination, personally or by certified mail, upon such person at his or her principal place of business, or, if such place is not known, to his or her last known address. Any book, record, paper, memorandum, or other information produced by any person pursuant to this subsection shall not, unless otherwise ordered by a court of this State for good cause shown, be disclosed to any person other than the duly authorized agent or representative of the Attorney General or a State’s Attorney or another law enforcement officer engaged in legitimate law enforcement activities, unless with the consent of the person producing the same. This subsection shall not be applicable to any criminal investigation or prosecution brought under the laws of this or any state.

(2) A person upon whom a notice is served pursuant to the provisions of this subsection shall comply with the terms thereof unless otherwise provided by the order of a court of this State. Any person who, with intent to avoid, evade, or prevent compliance, in whole or in part, with any civil investigation under this subsection, removes from any place, conceals, withholds, or destroys, mutilates, alters, or by any other means falsifies any documentary material in the possession, custody, or control of any person who is the subject of any such notice, or misstates or conceals any information, shall be fined not more than $5,000.00.

(3) Whenever any person fails to comply with any notice served upon him or her under this subsection, or whenever satisfactory copying or reproduction of any such material cannot be done and such person refuses to surrender such material, the Attorney General may file, in the Superior Court in the district in which such person resides or has his or her principal place of business, or in Washington County if such person is a nonresident or has no principal place of business in this State, and serve upon such person a petition for an order of such court for the enforcement of this subdivision. Whenever any petition is filed under this subdivision, such court shall have jurisdiction to hear and determine the matter so presented, to enter such order or orders to hear and determine the matter so presented, and to enter such order or orders as may be required to carry into effect the provisions of this subdivision. Any disobedience of any order entered under this subsection by any court shall be punished as a contempt thereof.

(e) Any person who violates the terms of an injunction issued under this section shall pay to the State a civil penalty of not more than $10,000.00 for each violation. For the purposes of this subsection, the court issuing such injunction shall retain jurisdiction, and the cause shall be continued, and, in such cases, the Attorney General may petition for recovery of such civil penalty.

(Added 2001, No. 37, § 2.)

Chapter 71 Trademarks; Registration of Name or Mark

Subchapter 1 Trademarks

§ 2521 Trademark defined

The term “trademark” as used in this subchapter includes any word, name, symbol, or device, or any combination thereof, adopted and used:

(1) by a manufacturer or merchant to identify his or her goods and distinguish them from those manufactured or sold by others; or

(2) by another person on goods produced by his or her labor.

(Amended 2021, No. 20, § 25.)

§ 2522 Registration

Every person who adopts and uses any trademark for the purpose of designating, making known, and distinguishing any merchandise, goods, wares, or other products of labor, manufactured, produced, compounded, sold, or offered for sale in this State may, subject to the limitations hereafter set forth, file for record in the Office of the Secretary of State a statement under oath setting forth:

(1) The name and address of the person applying for such registration.

(2) The class of merchandise and a particular description of the goods comprised in each class to which such trademark has been appropriated and the mode in which it is used, the general nature of the applicant’s business, and the use of the subject of registration.

(3) The date when such trademark hereunder was first used or adopted, and that no other person has the right to it, either in the identical form, or having such near resemblance thereto as may be calculated to deceive, or that would be liable to be mistaken therefor.

(4) A facsimile, copy, or counterpart of such trademark shall be incorporated in or annexed to such statement, and a duplicate shall be filed therewith. Such statement shall be signed by the applicant in whose behalf it is filed, or by his, her, or its agent or duly authorized officer.

§ 2523 Certificate of registration; filing fee

There shall be paid to the Secretary of State for the filing of such statement a fee of $35.00. The Secretary of State shall deliver to the person filing such statement or causing the same to be filed a certificate of registration under the Secretary’s signature and State Seal, showing the name and address of the person claiming ownership of the trademark registered, the date of such filing, a general description of the trademark to be registered, and a receipt showing the payment of the filing fee therefore. The fee for renewal of any registration shall be $35.00.

(Amended 2003, No. 70 (Adj. Sess.), § 6, eff. March 1, 2004; 2023, No. 77, § 42, eff. June 20, 2023.)

§ 2524 Duration and renewal

Registrations recorded under the provisions of this subchapter shall be effective for 10 years and shall be renewable for like periods upon application to the Secretary of State and payment of the fee specified in section 2523 of this title. Registrants of trademarks recorded hereunder shall be notified by the Secretary of State of the necessity of renewal within the one-year period next preceding the expiration of the 10 years from the date of registration. Trademarks previously registered under sections 7757 to 7762, inclusive, of the Vermont Statutes, Revision of 1947, shall expire six months after January 1, 1958, or 10 years from the date of their registration, whichever date is later, and applications for re-registration may be made within the six months’ period preceding the expiration of the original registration. The fee for a re-registration under the provisions of this section shall be $20.00.

(Amended 2003, No. 70 (Adj. Sess.), § 7, eff. March 1, 2004.)

§ 2525 Assignments

Title to any trademark and its registration hereunder may be transferred and assigned to any person together with the goodwill of the business to which such trademark pertains or with that part of the goodwill of the business connected with the use of and symbolized by the mark. Written assignments shall be recorded by the Secretary of State upon payment of the fee of $35.00. When such assignment is recorded, a new certificate of registration shall be issued in the name of the assignee.

(Amended 2003, No. 70 (Adj. Sess.), § 8, eff. March 1, 2004; 2023, No. 77, § 43, eff. June 20, 2023.)

§ 2526 Applications for registration; classification

All applications for registration of a trademark and renewals or assignments thereof shall be on forms prescribed by the Secretary of State. The Secretary of State shall establish classes of merchandise for the purpose of trademark registration, and shall determine the particular descriptions of goods comprised in each class.

(Amended 1981, No. 217 (Adj. Sess.), § 9.)

§ 2527 Suitability for registration

(a) The Secretary of State shall not register a trademark that consists of or comprises immoral, deceptive, or scandalous matter; or matter that may disparage or falsely suggest a connection with persons, living or dead, institutions, beliefs, or national symbols, or bring them into contempt, or disrepute, or consists of or comprises the flag or coat of arms or other insignia of the United States, or of any state or municipality, or of any foreign nation or any simulation thereof.

(b) The Secretary of State shall not register as a trademark the portrait of any living individual, except with the consent of such individual evidenced by an instrument in writing, or a merely geographical name or term, or any trademark that is identical with any trademark theretofore used or registered by any other person that, when applied to the goods of the applicant, is likely to cause confusion or mistake or to deceive purchasers, or that so nearly resembles such trademark as to be likely to cause confusion or mistake in the minds of the public or to deceive purchasers, or any trademark that consists merely in the name of any person, not written, printed, impressed, or woven in a particular or distinctive manner or in association with a portrait of such individual, or that consists merely in words that are descriptive of the merchandise with which they are used or the character or quality of such merchandise.

(Amended 1981, No. 217 (Adj. Sess.), § 10.)

§ 2528 Fraudulent registration

Any person who shall for himself, herself, or on behalf of any other person, procure the filing and registration of any trademark by making knowingly and willfully any false or fraudulent representations or declarations, verbally, or in writing, or by any fraudulent means, shall be liable to pay all damages sustained in consequence of any such filing, to be recovered by or on behalf of the party injured thereby, in a civil action on this statute, and shall be fined not exceeding $500.00 or imprisoned not exceeding one year, or both.

§ 2529 Enjoining use of counterfeits or imitations

A person who has adopted and registered a trademark as aforesaid, may proceed by suit to enjoin the manufacture, use, display, or sale of any counterfeits or imitations thereof, and the Superior Court may grant injunctions to restrain such manufacture, use, display, or sale as may be by the said court deemed just and reasonable, and may require the defendants to pay to such person all profits derived from such wrongful manufacture, use, display, or sale; and such court may also order that any such counterfeits or imitations in the possession or under the control of any defendant in such case, be delivered to an officer of the court, or to the complainant, to be destroyed.

§ 2530 Violations

Subject to the provisions of section 2532 of this title, no person shall knowingly and willfully:

(1) falsely make, counterfeit, imitate, sell, offer for sale, or in any way utter or circulate any trademark that has been registered in accordance with the provisions of this subchapter;

(2) affix to any article of merchandise a false or counterfeit or imitation trademark, or the genuine trademark of another that has been registered in accordance with the provisions of this subchapter, without the latter’s consent;

(3) sell, keep, or offer for sale an article of merchandise, to which is affixed a false or counterfeit trademark, or the genuine trademark, or an imitation of the trademark of another that has been registered in accordance with the provisions of this subchapter, without the latter’s consent;

(4) have in his or her possession a counterfeit trademark or a die, plate, brand, or other thing for the purpose of falsely making or counterfeiting a trademark that has been registered in accordance with the provisions of this subchapter; or

(5) make or sell, or offer to sell or dispose of, or have in his or her possession with intent to sell or dispose of, an article of merchandise with a trademark that has been registered in accordance with the provisions of this subchapter by another, which indicates falsely the quantity, character, place of manufacture or production, or person manufacturing, producing, or sponsoring the article.

§ 2531 Penalties

Subject to the provisions of section 2532 of this title, any person who violates any of the provisions of section 2530 of this title shall be fined not more than $500.00 or imprisoned for not more than one year, or both, and shall be liable to pay all damages sustained in consequence of such violation of section 2530, to be recovered by or on behalf of the party injured thereby, in a civil action on this statute.

§ 2532 Prior rights

Nothing in this subchapter shall adversely affect the rights or the enforcement of rights in marks acquired in good faith at any time at common law.

(Amended 2021, No. 20, § 26.)

Subchapter 2 Registration of Name or Mark for Receptacles

§ 2571 Publication and registration of name or mark of owner

A person or corporation engaged in buying, selling, or dealing in milk, cream, or nonintoxicating beverages in receptacles, or a licensed buyer, dealer in, or vendor of, intoxicating beverages, whose name, mark, or other device is produced in a permanent manner in or upon such receptacle, may file in the office of the clerk of the town in which his, her, or its principal place of business is situated, a description of the name, mark, or other device so used, and cause such description to be published in such town four weeks successively in a newspaper published therein. If a newspaper is not published therein, such publication shall be in a newspaper published in the county in which such town is situated.

§ 2572 Penalty for use of mark without consent of owner

A person who, without the owner’s consent, buys, sells, takes, uses in his or her business, conceals, or disposes of a receptacle belonging to a person or corporation that has complied with the provisions of section 2571 of this title shall be imprisoned not more than 60 days or fined not more than $5.00, or both, for each such receptacle so unlawfully bought, sold, taken, used, concealed, or disposed of. For each subsequent offense, such person shall be imprisoned not more than six months or fined not more than $10.00, or both, for each such receptacle so unlawfully bought, sold, taken, used, concealed, or disposed of. The possession by a person in the transaction of his or her business of a receptacle, the owner of which has complied with the provisions of section 2571 of this title, shall be prima facie evidence that the same was unlawfully bought, sold, taken, used, concealed, or disposed of.

(Amended 1981, No. 223 (Adj. Sess.), § 23.)

§ 2573 Mutilating receptacle or erasing name; penalty

A person who willfully destroys, mutilates, or defaces a receptacle bearing the name or other device of an owner who has complied with the provisions of section 2571 of this title, or willfully erases, mars, covers, or changes a name or other device produced in a permanent manner in or upon such receptacle, shall be imprisoned not more than 60 days or fined not more than $5.00, or both, for each receptacle so destroyed, mutilated, or defaced, or upon which a name or other device has been erased, marred, covered, or changed. For each subsequent offense, he or she shall be imprisoned not more than six months or fined not more than $10.00, or both, for each receptacle so destroyed, mutilated, or defaced or upon which a name or other device has been erased, marred, covered, or changed.

(Amended 1981, No. 223 (Adj. Sess.), § 23.)

§ 2574 Destroying or polluting butter crates or carriers; penalty

A person who puts any unclean or foul matter into a receptacle, the owner of which has complied with the provisions of section 2571 of this title, or who mutilates, destroys, or pollutes a butter crate or carrier, shall be fined not more than $5.00 or less than $0.50 for each receptacle so defiled, mutilated, or destroyed, and, for each subsequent offense, shall be fined not more than $20.00 nor less than $2.00 for each receptacle so defiled, mutilated, or destroyed.

§ 2575 Search warrant; judicial proceedings

If a person or corporation that has complied with the provisions of section 2571 of this title, or the agent of such person or corporation, makes oath before a judge of a Criminal Division of the Superior Court that he or she has reason to believe and does believe that a person has unlawfully in his or her possession or is secreting a receptacle marked as provided in section 2571 of this title, the judge, if satisfied that there is a reasonable cause for the belief, shall issue a search warrant to discover and obtain the same, and may cause to be brought before him or her a person in whose possession such receptacle is found, and shall inquire into the circumstances of the possession. If the judge finds that the person is guilty of a willful violation of a provision of sections 2572-2574 of this title, he or she shall impose the penalty prescribed therein, and award to the owner the possession of the property taken upon the search warrant.

(Amended 1965, No. 194, § 10; 2009, No. 154, § 238.)

Chapter 72 Mobile Homes

§ 2601 Definitions

(a) As used in this chapter, unless the context requires otherwise, “mobile home” means:

(1) A mobile home as defined in 10 V.S.A. § 6201.

(2) An unmotorized vehicle, other than a travel or recreational trailer, designed to be towed and designed or equipped for use as sleeping, eating, or living quarters.

(b) A mobile home remains a mobile home for purposes of this chapter even though it may be used for advertising, sales, display, or promotion of merchandise or services, or for any other commercial purposes except the transportation of property.

(d) “Permanently sited” means the mobile home has become affixed to the land. Factors that tend to show a mobile home is permanently sited include:

(1) The mobile home has been set up on blocks or otherwise stabilized so that the wheels do not form a major part of the structural support.

(2) The mobile home has been connected to utilities such as electricity, sewage, water, gas, or oil.

(3) Skirting has been installed around the base of the mobile home.

(4) The wheels or axles have been removed.

(5) The mobile home has been situated in a place that makes removal unlikely.

(Added 1971, No. 103; amended 1983, No. 237 (Adj. Sess.), § 1; 1989, No. 229 (Adj. Sess.), § 1; 2003, No. 104 (Adj. Sess.), § 3; 2007, No. 176 (Adj. Sess.), § 38.)

§ 2602 Sale or transfer; price disclosure; mobile home uniform bill of sale

(a) Appraisal; disclosure. When a mobile home is sold or offered for sale:

(1) If a mobile home is appraised, the appraisal shall include a cover sheet that itemizes the value of the unsited mobile home, the value of any adjacent or attached structures located on the site and the value of the sited location, if applicable, and valuations of sales of comparable properties.

(2) In the case of a new mobile home, the seller shall provide to a prospective buyer a written disclosure that states the retail price of the unsited mobile home, any applicable taxes, the set-up and transportation costs, and the value of the sited location, if applicable.

(3) In the case of a mobile home as defined in 10 V.S.A. § 6201, the seller shall provide to a prospective buyer a written disclosure of any flooding history or flood damage to the mobile home known to the seller, including flood damage from inundation or from flood-related erosion or landslide damage.

(4) A legible copy of the disclosure required in subdivision (2) of this subsection shall be prominently displayed on a new mobile home in a location that is clearly visible to a prospective buyer from the exterior.

(b) Sale or transfer of all mobile homes.

(1) Prior to the sale or transfer of ownership of a mobile home, the seller or transferor shall provide a copy of a completed, unexecuted, mobile home bill of sale:

(A) to the town clerk in which the mobile home is located for his or her endorsement; and

(B) in the case of a mobile home being sold or transferred separately from the real property on which it is located, to the record owner of the real property on which the mobile home is located by certified mail, return receipt requested, at least 21 days prior to the transfer or sale.

(2) A clerk shall not endorse a mobile home uniform bill of sale unless:

(A) all property taxes due and payable on the mobile home, but not the real property on which the mobile home is located if separately owned, have been paid in full as of the most recent assessment, or if the town collects taxes in installments pursuant to 32 V.S.A. § 4872, as of the most recent installment; or

(B) in the case of removal of a mobile home from the municipality, or of a sale, trade, or transfer that will result in the removal of the mobile home from the municipality, all property taxes assessed with regard to the mobile home, but not the mobile home site, have been paid.

(3) The seller or transferor shall execute and provide the endorsed bill of sale to the buyer or transferee at the time of sale or transfer.

(4) The buyer or transferee shall execute and then file the executed bill of sale with the clerk of the town in which the mobile home will be located within 10 days of executing the bill of sale. A clerk shall not accept a mobile home uniform bill of sale for filing that is not completed, executed, and endorsed as required by this subsection. Upon filing, the clerk shall note the transfer on the mobile home uniform bill of sale whereby the seller acquired ownership of the mobile home, if available.

(5) If the mobile home will be relocated to real property that is not owned by the buyer or transferee, the buyer or transferee shall provide a copy of the mobile home uniform bill of sale to the record owner of the real property on which the mobile home will be located at least 21 days prior to the sale or transfer of the mobile home.

(6) Within 14 days of the filing of the bill of sale, the town clerk shall mail a copy of the bill of sale to each buyer, seller, and owner of real property for whom a mailing address is provided in the bill of sale pursuant to subdivision (c)(1) of this section.

(7) The requirements of this subsection shall apply to a mobile home that is physically relocated by its owner to another town.

(8) This subsection shall not apply to:

(A) the valid transfer of a mobile home by deed when financed as residential real estate pursuant to this chapter;

(B) the valid transfer of a mobile home by a mobile home uniform bill of sale issued by the court pursuant to the abandonment process set forth in 10 V.S.A. § 6249;

(C) the physical relocation of a mobile home that is held as inventory by a manufacturer, distributor, or dealer, is stored or displayed on a sales lot, and is not connected to utilities.

(1) A mobile home uniform bill of sale shall contain the following information regarding each mobile home being transferred:

(A) the name and address of each seller or transferor;

(B) the name and address of each buyer or transferee, and if more than one buyer or transferee, the estate under which the buyers or transferees will hold title to the mobile home;

(D) the current address or location of the mobile home;

(E) whether the mobile home will be moved following the sale or transfer, and if so, the future address of the mobile home;

(F) the name and address of the owner of the real property on which the mobile home is located;

(G) the name and address of the owner of the real property on which the mobile home will be located following the sale or transfer;

(H) the sale constitutes a “retail installment transaction” as defined in subdivision 2351(4) of this title and is subject to chapter 59 of this title (motor vehicle and mobile home retail installment sales financing);

(I) an itemized list of the mobile home’s deficiencies known to the seller at the time of the sale, if the mobile home is sold “as is”; and

(J) an itemized list of known liens on the mobile home.

(2) A mobile home uniform bill of sale shall be substantially in the following form:

VERMONT MOBILE HOME UNIFORM BILL OF SALE

NOTICE

Vermont statute requires that this Mobile Home Uniform Bill of Sale be signed by each Buyer and Seller, endorsed by the Town Clerk of the Town where the Mobile Home is located at the time of sale, and filed by Buyer with the Town Clerk of the Town where the Mobile Home will be located after the sale. A financing statement evidencing a security interest in the Mobile Home must be filed with the Secretary of State.

Seller or Transferor (“Seller”):

Name: .........................................

Street: .........................................

Town/State/ZIP: .........................................

County: .........................................

Mailing Address (if different):

Street: .........................................

Town/State/ZIP: .........................................

Buyer or Transferee (“Buyer”):

Name: .........................................

Street: .........................................

Town/State/ZIP: .........................................

County: .........................................

Mailing Address (if different):

Street: .........................................

Town/State/ZIP: .........................................

If more than one Buyer, Buyers take title as:

[ ] Joint tenants (co-owners with right of survivorship).

[ ] Tenants by the entirety (joint tenancy of persons who are married).

[ ] Tenants in common (individual interests without right of survivorship).

[ ] .........................................

Mobile Home Being Sold or Transferred (“Mobile Home”)

Specifications:

Make: .........................................

Model: .........................................

Year: .........................................

Serial Number: .........................................

Size: .........................................

Color: .........................................

Current Location:

Street: .........................................

Town/State/ZIP: .........................................

County: .........................................

Owner of Real Property on which Mobile Home is Located:

Name: .........................................

Street: .........................................

Town/State/ZIP: .........................................

Mailing Address (if different):

Street: .........................................

Town/State/ZIP: .........................................

Location of Mobile Home Following Sale

[ ] Mobile Home will remain at current location. [ ] Mobile Home will be relocated to the following address:

Street: .........................................

Town/State/ZIP: .........................................

County: .........................................

Owner of Real Property on which Mobile Home will be Located:

Name: .........................................

Street: .........................................

Town/State/ZIP: .........................................

Mailing Address (if different):

Street: .........................................

Town/State/ZIP: .........................................

Retail Installment Transaction

This sale constitutes a “retail installment transaction” as defined in 9 V.S.A. § 2351(4) and is subject to 9 V.S.A. chapter 59 (motor vehicle and mobile home retail installment sales financing).

KNOWN DEFICIENCIES IN “AS IS” SALES

In the case of an “as is” sale, the Seller is aware of the following deficiencies and defects of the Mobile Home:

KNOWN LIENS

The Seller is aware of the following liens on the Mobile Home:

For good and valuable consideration, the receipt and sufficiency of which is acknowledged, Seller hereby transfers to the Buyer the Mobile Home identified in this Bill of Sale, and Seller covenants with Buyer that Seller is the lawful owner of the Mobile Home, that it is free from all encumbrances, that Seller has good right to sell the Mobile Home, and that Seller will warrant and defend the same against the lawful claims and demands of all persons.

| Seller Signature ......................................... | Date ......................................... | | --- | --- | | Witness Signature ......................................... | Date ......................................... | | Buyer Signature ......................................... | Date ......................................... | | Witness Signature ......................................... | Date ......................................... |

TOWN CLERK ENDORSEMENT

TO BE COMPLETED BY TOWN CLERK WHERE MOBILE HOME IS CURRENTLY LOCATED PRIOR TO EXECUTION BY THE BUYER AND SELLER. I hereby acknowledge that:

[ ] all property taxes due and payable on the mobile home, but not the real property on which the mobile home is located if separately owned, have been paid in full as of the most recent assessment, or if the town collects taxes in installments pursuant to 32 V.S.A. § 4872, as of the most recent installment; or

[ ] in the case of removal of a mobile home from the municipality, or of a sale, trade, or transfer that will result in the removal of the mobile home from the municipality, all property taxes assessed with regard to the mobile home, but not the mobile home site, have been paid.

Town Clerk Signature: ......................... Date: .........................................

(d) Relocation of mobile home. Unless excluded under subdivision (b)(8) of this section, a mobile home shall not be moved over the highways of this State unless the operator of the vehicle hauling the mobile home has in his or her possession a copy of the mobile home uniform bill of sale endorsed pursuant to subsection (b) of this section. In addition to any penalty or remedy imposed under section 2607 of this title, a violation of this subsection shall be subject to the collection and enforcement provisions set forth in 32 V.S.A. § 5079.

(e) Mobile home rent-to-own agreements.

(1) Definition of rent-to-own agreements for mobile homes. For purposes of this subsection, “an agreement to purchase a mobile home on a rent-to-own, lease-purchase, or similar basis” means any agreement, other than an agreement to purchase a mobile home, that will be financed as residential real estate, under which:

(A) a buyer or lessee, however named, agrees to pay consideration in one or more installments to the owner of a mobile home, or to a third party designated by the owner of the mobile home to receive payment on behalf of the owner, for the right to use or occupy the mobile home; and

(B) upon full compliance with the terms of the agreement, the buyer or lessee, however named, is bound to become, or for no further or a merely nominal additional consideration, has the option of becoming, the owner of the mobile home.

(2) Requirements to consummate sale under rent-to-own agreements. An agreement to purchase a mobile home on a rent-to-own, lease-purchase, or similar basis shall not transfer ownership of the mobile home, or the rights, duties, and liabilities arising from ownership of the mobile home, unless and until:

(A) the buyer and seller execute a written retail installment contract complying with the requirements set forth in chapter 59 of this title; and

(B) a mobile home uniform bill of sale transferring the mobile home from the seller to the buyer is completed, endorsed, executed, and filed pursuant to subsection (b) of this section.

(3) Compliance; sale. Notwithstanding any provision of 9A V.S.A. Article 2 (Uniform Commercial Code; sale of goods) to the contrary, an agreement to purchase a mobile home on a rent-to-own, lease-purchase, or similar basis that meets the requirements of subdivision (2) of this subsection shall constitute a “retail installment transaction” as defined in subdivision 2351(4) of this title, is subject to chapter 59 of this title, and shall not be subject to chapter 137 of this title relating to residential rental agreements.

(4) Failure to comply; lease. Notwithstanding any provision of 9A V.S.A. Article 2A (Uniform Commercial Code; leases) to the contrary, an agreement to purchase a mobile home on a rent-to-own, lease-purchase, or similar basis that does not meet the requirements of subdivision (2) of this subsection shall constitute a residential rental agreement as defined in subdivision 4451(8) of this title, and shall be governed by chapter 137 of this title relating to residential rental agreements.

(f) Sale of mobile homes in non-rent-to-own transactions. Except for a mobile home that is financed or conveyed as real property:

(1) The sale of a mobile home under subsection (b) of this section, is a sale of goods under 9A V.S.A. Article 2 (Uniform Commercial Code; sale of goods), except to the extent of a direct conflict with this section.

(2) The sale of a mobile home under this section is subject to the provisions governing express and implied warranties on the sale of goods set forth in 9A V.S.A. Article 2, Part 3, with the following modifications:

(A) the warranty of title in a contract of sale under 9A V.S.A. § 2-312 may be excluded or modified only by a written agreement that is executed by the buyer and seller prior to sale and clearly states any deficiency or limitation on the seller’s title, as well as any security interest, lien, or encumbrance on the mobile home that excludes or modifies the warranty of title;

(B) in the case of a new mobile home, the implied warranty of merchantability under 9A V.S.A. § 2-314 and the implied warranty of fitness for a particular purpose under 9A V.S.A. § 2-315 may not be waived if the seller has notice that the mobile home will be used by the buyer as his or her primary residence; and

(C) in the case of a used mobile home, the implied warranty of merchantability under 9A V.S.A. § 2-314 and the implied warranty of fitness for a particular purpose under 9A V.S.A. § 2-315 may be waived only if the seller notifies the buyer in writing that the mobile home is being offered for sale “as is.”

(Added 1971, No. 103; amended 1983, No. 237 (Adj. Sess.), § 2; 1989, No. 229 (Adj. Sess.), §§ 2, 2a; 1997, No. 103 (Adj. Sess.), § 7, eff. April 23, 1998; 1999, No. 159 (Adj. Sess.), § 23, eff. May 29, 2000; 2009, No. 140 (Adj. Sess.), § 1, eff. Sept. 1, 2010; 2021, No. 20, § 27; 2023, No. 181 (Adj. Sess.), § 105a, eff. June 17, 2024.)

§ 2603 Financing of mobile homes; creditors’ remedies; retail installment contract disclosure

(a) Except as provided in subsection (b) of this section, a mobile home may be financed under chapter 59 of this title, or under subdivision 41a(b)(4) of this title.

(b) A mobile home that is or is intended to be permanently sited for continuous residential occupancy by the owner on land that is:

(1) Owned by the owner of the mobile home shall be financed as residential real estate.

(2) Leased by the owner of the mobile home may be financed as residential real estate.

(c) The holder of a retail installment contract, promissory note, or other evidence of indebtedness, secured by collateral consisting of a mobile home, shall not have the prejudgment remedies provided in 9A V.S.A. § 9—609, 12 V.S.A. § 5331, V.R.C.P. 64 or V.R.C.P. 4.1, except where V.R.C.P. 64(b)(3) or V.R.C.P. 4.1(b)(3) applies, with respect to the mobile home. The holder of the retail installment contract may proceed in Superior Court by action to take possession of the mobile home under 9A V.S.A. § 9—609. An action to take possession of a mobile home shall be heard by the Superior Court within 90 days of filing of the action.

(d) A mobile home that is permanently sited in a manner intended for continuous residential occupancy by the owner, on land owned or leased by its owner, shall be considered a homestead under 27 V.S.A. chapter 3.

(e) At the time a motor vehicle retail installment sales contract for purchase of a mobile home is taken, a retail seller shall provide to the potential buyer written disclosure in a form approved by the Commissioner of Financial Regulation. The disclosure shall clearly state that other financing options may be available for the purchase of the mobile home, including financing offered by the Vermont Housing Finance Agency, lenders licensed pursuant to 8 V.S.A. chapter 73, a financial institution as described in 8 V.S.A. § 11101(32), or a credit union. Any person who fails to comply with this subsection may be fined by the Commissioner no more than $1,000.00 for each occurrence.

(Added 1971, No. 103; amended 1975, No. 215 (Adj. Sess.), § 1, eff. April 1, 1976; 1979, No. 173 (Adj. Sess.), § 24, eff. April 30, 1980; 2003, No. 104 (Adj. Sess.), § 6; 2007, No. 176 (Adj. Sess.), § 39.)

§ 2604 Real estate deeds for mobile homes

(a) Any mobile home purchased from a mobile home dealer on or after July 1, 2008 that is financed as residential real estate pursuant to subsection 2603(b) of this title shall be conveyed by a warranty deed drafted in substantially the form provided in subsection (c) of this section.

(b) An owner of a mobile home shall, upon financing or refinancing a mobile home as residential real estate or selling a mobile home that has been financed as residential real estate, issue to the grantee either a warranty deed or a quitclaim deed that is drafted in substantially the form provided in subsection (c) or (d) of this section.

(c) A deed that is substantially in the form provided in this subsection shall, when duly executed and delivered, have the force and effect of a deed in fee simple to the grantee, the heirs, successors, and assigns, to their own use, with covenants on the part of the grantor, for the grantor, the grantor’s heirs, executors, and administrators that, at the time of the delivery of the deed, the grantor was lawfully seized in fee simple of the mobile home; that the mobile home was free from all encumbrances, except as stated; that the grantor had good right to sell and convey the same to the grantee, the grantee’s heirs, successors, and assigns; and that the grantor and the grantor’s heirs, executors, and administrators shall warrant and defend the same to the grantee and the grantee’s heirs, successors, and assigns, against the lawful claims and demands of all persons. No owner of land on which a mobile home is sited shall unreasonably withhold the consent required by this statutory form.

Form for Mobile Home Warranty Deed

______ , of ______ , ______ County, State of ______ , (“Grantor”), for consideration paid, grants to ______ of Street, Town (City) of ______ , ______ County, State of ______ (“Grantee”), with warranty covenants, the ______ (description of mobile home being conveyed: name of manufacturer, model and serial number and encumbrances, exceptions, reservations, if any) which mobile home is situated, or is to be situated, at ______ (state name of park, if any, and street address), Town (City) of ______ , ______ County, State of Vermont.

The tract or parcel of land upon which the mobile home is situated, or is to be situated, is owned by ______ by deed dated and recorded at Book ____ , Page ____ in the land records of the Town (City) of ______ .

______ (wife)(husband) of said Grantor, releases to said Grantee all rights and other interests therein.

Signed this ______ day of ______ , ____ .

(Here add acknowledgment)

______ , owner of the tract or parcel of land upon which the aforesaid mobile home is situated, or is to be situated, hereby consents to the conveyance of the mobile home.

Signed this ______ day of ______ , ____ .

(Here add acknowledgment)

[ ] Check box if the mobile home has been relocated from one site to another within Vermont, and attach a Relocation Statement in the form provided in 9 V.S.A. § 2606.

(d) A deed that is substantially in the form provided in this subsection shall, when duly executed and delivered, have the force and effect of a deed in fee simple to the grantee, the heirs, successors, and assigns, to their own use. No owner of land on which the mobile home is sited shall unreasonably withhold consent required by this statutory form.

Form for Mobile Home Quitclaim Deed

______ , of ______ , ______ County, State of ______ (“Grantor”), for consideration paid, grants to ______ of ______ Street, Town (City) of ______ , ______ County, State of ______ (“Grantee”), with quitclaim covenants, the (description of mobile home being conveyed: name of manufacturer, model and serial number and encumbrances, exceptions, reservations, if any) which mobile home is situated, or is to be situated, at ______ (state name of park, if any, and street address), Town (City) of ______ County, State of Vermont.

The tract or parcel of land upon which the mobile home is situated, or is to be situated, is owned by ______ by deed dated ______ and recorded at Book _____ , Page _____ , in the land records of the Town (City) of ______ .

______ (wife)(husband) of said Grantor releases to said Grantee all rights and other interest therein.

Signed this ______ day of ______ , ____ .

(Here add acknowledgment)

______ , owner of the parcel of land upon which the aforesaid mobile home is situated, or is to be situated, hereby consents to the conveyance of the mobile home.

Signed this ______ day of ______ , ____ .

(Here add acknowledgment)

[ ] Check box if the mobile home has been relocated from one site to another within Vermont, and attach a relocation statement in the form provided in 9 V.S.A. § 2606.

(Added 1975, No. 215 (Adj. Sess.), § 3, eff. April 1, 1976; amended 2003, No. 104 (Adj. Sess.), § 7; 2007, No. 176 (Adj. Sess.), § 40.)

§ 2605 Mobile home bill of sale conversion process

The owner of any mobile home that was initially financed pursuant to a motor vehicle loan, motor vehicle retail installment contract, or another form of chattel mortgage shall, if the mobile home is subsequently financed as residential real estate pursuant to subsection 2603(b) of this title, file a request for purging of the security interest with the clerk of the municipality where the chattel mortgage for the mobile home was last recorded.

(1) A request to purge the security interest of a mobile home shall include the most recent Vermont uniform bill of sale or certificate of origin, the terminated UCC financing statement or statements, and an executed warranty or quitclaim deed, which shall be drafted substantially in the form provided in section 2604 of this title.

(2) Upon the filing of a request to purge the security interest of a mobile home with the clerk of the municipality where the chattel mortgage for the mobile home was last recorded, and upon the owner’s procuring the consent of the holders of any security interest in the mobile home shown to be unreleased, the mobile home shall become residential real estate.

(3) Upon receiving a request to purge the security interest of a mobile home, the municipal clerk shall mark or stamp the originally filed Vermont uniform bill of sale or certificate of origin with the word “converted.”

(4) A mobile home that has been converted to residential real estate shall not be converted or redefined as personal property.

(Added 2007, No. 176 (Adj. Sess.), § 41.)

§ 2606 Relocating mobile homes to another municipality or state

(a) If a deed for any mobile home is recorded by the clerk of the municipality in which the mobile home is sited, and if that mobile home is relocated to another site within the State of Vermont, the owner of the mobile home shall, within 10 days of the relocation, do all the following:

(1) File with the clerk of the municipality where the deed was last recorded a relocation statement substantially in the form provided in this subsection.

(2) File with the clerk of the municipality where the mobile home is relocated a copy of the relocation statement as required by subdivision (1) of this subsection, together with the deed filed with the clerk of the municipality where the mobile home was previously sited. If the records of a municipality in which the deed or conveyance is recorded are destroyed, an attested copy of the deed or other conveyance from the county clerk shall have the same validity as a copy from the municipal clerk’s office.

(3) Provide a copy of the relocation statement filed pursuant to subdivision (1) of this subsection to the holders of any unreleased, recorded security interests in the mobile home.

Form for Relocation Statement

______ , of ______ , ______ County, State of ______ , is the owner of (description of mobile home: name of manufacturer, model and serial number and encumbrances, exceptions, reservations, if any), which mobile home has been relocated.

The mobile home was previously located at ______ (state name of park, if any, and street address), Town (City) of ______ , ______ County, State of Vermont and title, if any, to the same was recorded at Book _____ , Page _____ , in the records of the Town (City) of ______ .

The mobile home is/has been relocated to ______ (state name of park, if any, and street address), Town (City) of ______ , ______ County, State of Vermont and title, if any, to the same was recorded at Book _____ , Page _____ , in the records of the Town (City) of ______ .

The tract or parcel of land upon which the mobile home is situated is owned by ______ by deed dated ______ and recorded at Book _____ , Page _____ in the land records of the Town (City) of ______ .

The mobile home is subject to an existing mortgage by ______ in favor of ______ , recorded at Book _____ , Page _____ , in the land records of the Town (City) of ______ .

If the relocation is to a municipality in Vermont other than the municipality in which the deed to the Grantor was recorded, a duplicate original of the deed to the Grantor shall be recorded in the land records of the municipality of the relocation at the same time this statement is recorded.

Signed this ______ day of ______ , ____ .

(b) An out-of-state transfer statement substantially in the form provided in this subsection shall, when duly executed and recorded by the clerk of the municipality in which the mobile home was previously located, have the force and effect of transferring title of the mobile home to the grantee, the grantee’s heirs, successors, and assigns and terminating the record title or deed of the mobile home in the municipal records under circumstances by which the mobile home is relocated outside this State. No owner of land on which a mobile home is sited shall unreasonably withhold the consent required by this statutory form. No mobile home may be relocated to a site outside this State unless all holders of liens, attachments, or encumbrances, if any, consent in writing on the transfer statement.

Form for Out-of-State Transfer Statement

______ , of ______ , County, State of ______ (“Grantor”), for consideration paid, grants to ______ , (complete mailing address) ______ , of ______ Street, Town (City) of ______ , ______ County, State of ______ (“Grantee”), the ______ (Description of mobile home being conveyed: name of manufacturer, model and serial number and encumbrances, exceptions, reservations, if any) which mobile home was situated at ______ (state name of park, if any, and street address), Town (City) ______ of ______ County, State of Vermont.

The tract or parcel of land upon which the mobile home was situated is owned by ______ by deed ______ dated ______ and recorded at Book _____ , Page ______ in the ______ County Registry of Deeds.

______ (wife)(husband) of said Grantor, releases to said Grantee all rights and other interest therein.

The mobile home is transferred subject to an existing mortgage by ______ in favor of ______ , recorded at Book _____ , Page _____ , in the land records of the Town (City) of ______ , State of Vermont.

Signed this ______ day of ______ , _____ .

(Here add acknowledgment)

______ , owner of the tract or parcel of land upon which the aforesaid mobile home was situated, hereby consents to the conveyance of the mobile home.

Signed this ______ day of ______ , _____ .

(Here add acknowledgment)

______ , holder of (lien, attachment or encumbrance) hereby consent to the conveyance of the aforesaid mobile home, subject to condition that the aforesaid (lien, attachment or encumbrance) shall remain in force and effect thereon.

Signed this ______ day of ______ , _____ .

(Here add acknowledgment)

(c) An attachment, mortgage, security interest, lien, or other encumbrance on a mobile home, when properly perfected, shall be enforceable until released or discharged notwithstanding the relocation of the mobile home within or outside this State.

(Added 2007, No. 176 (Adj. Sess.), § 42.)

§ 2607 Penalty

A person who violates a provision of this chapter:

(1) except for violations of subsection 2603(e) of this title, shall be fined not more than $5,000.00 for each occurrence; and

(2) shall be subject to all the remedies and penalties available to a consumer and the Attorney General under chapter 63 of this title.

(Added 2007, No. 176 (Adj. Sess.), § 43.)

§ 2608 Municipal action for sale of abandoned mobile home

(a) In the alternative to the process for foreclosure of a tax lien on a mobile home pursuant to 32 V.S.A. chapter 133, a municipality shall have the authority to commence an action to sell at public auction an abandoned mobile home located within the municipality pursuant to this section.

(b) A municipality shall file a verified complaint in the Civil Division of the Superior Court for the county in which the municipality is located, which shall be entitled “In re: Abandoned Mobile Home of [name of owner],” and shall include the following information:

(1) The physical location and address of the mobile home.

(2) The name and last known mailing address of the owner of the mobile home.

(3) A description of the mobile home, including make, model, and serial number, if available.

(4) The names and addresses of creditors, holders of housing subsidy covenants, or others having an interest in the mobile home based on liens or notices of record in the municipality offices or the Office of the Secretary of State.

(5) The facts supporting the claim that the mobile home has been abandoned.

(6) The name of a person disinterested in the mobile home or of a municipality employee who will be responsible for the sale of the mobile home at a public auction.

(7) A statement of the amount of taxes, fees, and other charges due or that will become due to the municipality.

(8) If the mobile home is located on leased land, the name and address of the landowner.

(c) A municipality may request an order approving transfer of a mobile home that is unfit for human habitation to the municipality without a public sale by filing a verified complaint containing the information required in subsection (a) of this section and the facts supporting the claim that the mobile home is unfit for human habitation.

(d) When a verified complaint is filed under this section, the clerk of the Civil Division of the Superior Court shall set a hearing to be held at least 15 days but no later than 30 days after the filing of the complaint.

(e) Within five days after filing the verified complaint, the municipality shall post a copy of the verified complaint and order for hearing on the mobile home and send a copy of the verified complaint and order for hearing by certified mail, return receipt requested, to the mobile home owner’s last known mailing address, to the landowner if the mobile home is located on leased land, and to all lien holders of record.

(f) The municipality shall publish the verified complaint and order for hearing in a newspaper of general circulation in the municipality where the mobile home is located. The notice shall be published no later than five calendar days before the date of hearing.

(g) If prior to or at the hearing any lien holder certifies to the court that the lien holder has paid to the municipality all taxes, charges, and fees due the municipality and will commence or has commenced proceedings to enforce the lien and will continue to pay municipal taxes, charges, and fees during the proceedings under this section, the court shall, upon confirmation of the representations of the lien holder, stay the action under this section pending completion of the lien holder’s action.

(h) At the hearing, the municipality shall prove ownership of the mobile home; abandonment of the mobile home; the amount of taxes, fees, and other charges due the municipality; and the amount of attorney’s fees claimed. The municipality shall also prove compliance with the notice requirements of subsections (e) and (f) of this section. Whether a mobile home is abandoned shall be a question of fact determined by the court.

(i) If the court finds that the municipality has complied with subsection (h) of this section, the court shall enter an order approving the sale of the mobile home at a public auction to be held within 15 days of the date of the order. The municipality shall send the order by first-class mail to the mobile home owner, to the landowner if the mobile home is located on leased land, and to all lien holders of record. The order shall require all the following:

(1) That the sale shall be conducted by the person identified in the verified complaint or some other person approved by the court.

(2) That notice of the sale shall be published in a newspaper of general circulation in the municipality where the mobile home is located and sent by first-class mail to the mobile home owner, to the landowner if the mobile home is located on leased land, and to all lien holders of record. The notice of sale shall be published no later than three calendar days before the date of sale.

(3) That the terms of sale provide for conveyance of the mobile home by real estate deed or by uniform mobile home bill of sale, as appropriate under this chapter, executed on behalf of the mobile home owner pursuant to the order of the court by the person authorized by the court, in “as is” condition, and free and clear of all liens and other encumbrances of record.

(4) A minimum bid established by the court sufficient to cover the total costs listed in subdivisions (7)(A)-(D) of this subsection. The mobile home shall be sold to the highest bidder over the minimum bid set by the court; provided, however, that if no bid meets or exceeds the minimum bid set by the court, the court shall order transfer of the mobile home to the municipality upon payment of costs due to the person who conducted the sale.

(5) The successful bidder, if other than the municipality:

(A) shall make full payment at the auction if the bid does not exceed $2,000.00; or

(B) if the bid exceeds $2,000.00, shall provide a nonrefundable deposit at the time of the auction of at least $2,000.00 or 25 percent of the bid, whichever is greater, and shall make full payment within three working days after the auction.

(6) A successful bidder, if other than the municipality, shall remove the mobile home from its current location within five working days after the auction unless the municipality permits the mobile home to remain on the site or permits removal of the mobile home at a later date. If the mobile home is located on leased land, the mobile home shall be removed within five days unless the landowner grants permission to the successful bidder, including the municipality, for the mobile home to remain on the leased land.

(7) The person who conducted the public sale shall report to the court the results of the sale, the proposed distribution of the proceeds of the sale, and the bank in which any excess proceeds are deposited and shall send a copy of the report to the mobile home owner, the municipality, the landowner if the mobile home is located on leased land, and all lien holders of record by certified mail, return receipt requested, within three working days after the sale. Anyone claiming impropriety in the conduct of the sale may file an objection with the court within seven days after the sale. The filing of an objection shall not invalidate the sale or delay transfer of ownership of the abandoned mobile home. If an objection is filed and if the court finds impropriety in the conduct of the sale, the court may order distribution of the proceeds of the sale as is fair, taking into account the impropriety. If no objection is filed with the court, on the eighth day after the sale, the proceeds shall be distributed as follows:

(A) to the person conducting the sale for costs of the sale;

(B) to the municipality for court costs, publication and mailing costs, and attorney’s fees incurred in connection with the action in an amount approved by the court;

(D) to the landowner for unpaid lot rent if the mobile home is located on leased land; and

(E) the balance to a bank account in the name of the mobile home municipality as trustee, for the benefit of the mobile home owner and lien holders of record, to be distributed pursuant to further order of the court.

(j) Notwithstanding provisions of this section and 10 V.S.A. § 6249 (sale of abandoned mobile home by park owner) to the contrary, if an action is commenced by a municipality pursuant to this section and by a mobile home park owner pursuant to 10 V.S.A. § 6249 for the sale of the same abandoned mobile home within 30 days of one another, the court shall consolidate the cases and shall distribute the proceeds of a sale as follows:

(1) to the person conducting the sale for costs of the sale;

(2) to the municipality and the park owner equitably in the discretion of the court:

(A) for court costs, publication and mailing costs, and attorney’s fees incurred in connection with the action in an amount approved by the court;

(B) for taxes, penalties, and interest owed the municipality in an amount approved by the court; and

(3) the balance to a bank account in the name of the mobile home municipality as trustee for the benefit of the mobile home owner and lien holders of record, to be distributed pursuant to further order of the court.

(k) If a municipality requests an order approving transfer of a mobile home to the municipality without a public sale, the court shall approve that order if it finds that the municipality has complied with subsection (h) of this section and has proved that the mobile home is unfit for human habitation. In determining whether a mobile home is unfit for human habitation, the court shall consider whether the mobile home:

(1) contains functioning appliances and plumbing fixtures;

(2) contains safe and functioning electrical fixtures and wiring;

(3) contains a safe and functioning heating system;

(4) contains a weather-tight exterior closure;

(5) is structurally sound; and

(6) is reasonably free of trash, debris, filth, and pests.

(Added 2011, No. 137 (Adj. Sess.), § 10, eff. May 14, 2012.)

Chapter 73 Weights and Measures

Subchapter 1 Agency of Agriculture, Food and Markets

§ 2631 Regulation of weights and measures

All weights and measures and weighing and measuring devices used in this State shall be regulated by the Secretary of Agriculture, Food and Markets in accordance with this chapter.

(Added 1967, No. 102, § 6, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 1.)

§ 2632 General powers and duties of Secretary

(a) The Secretary shall have the custody of the State standards of weight and measure and of the other standards and equipment provided for by this chapter, and shall keep accurate records of them. The Secretary shall enforce the provisions of this chapter. The Secretary shall have and keep general supervision over the weights and measures offered for sale, sold, or in use in the State. Notwithstanding 32 V.S.A. § 603, the Secretary shall set and charge such fees as in his or her opinion will cover costs for performing calibrations in laboratories of the Agency of Agriculture, Food and Markets and for use of the heavy duty test unit when assisting licensed service persons in repairing, adjusting, and installing scales.

(b) Fees and reimbursements of costs collected by the Agency of Agriculture, Food and Markets under the provisions of this chapter and 6 V.S.A. § 3022 shall be credited to a weights and measures special fund and shall be available to the Agency to offset the costs of implementing this chapter and 6 V.S.A. chapter 172.

(Added 1967, No. 102, § 7, eff. April 14, 1967; amended 1971, No. 69, § 1, eff. April 15, 1971; 1989, No. 256 (Adj. Sess.), § 10(a), eff. Jan. 1, 1991; 1991, No. 227 (Adj. Sess.), § 7; 1999, No. 49, § 127; 2013, No. 191 (Adj. Sess.), § 32, eff. July 1, 2015; 2015, No. 57, § 27.)

§ 2633 Specific powers and duties of Secretary; rules

(a) The Secretary shall issue from time to time reasonable rules for the enforcement of this chapter, which rules shall have the force and effect of law. The rules may include (1) standards of net weight, measure, or count, and reasonable standards of fill, for any commodity in package form, (2) rules governing the technical and reporting procedures to be followed and the report and record forms and marks of approval and rejection to be used by inspectors of weights and measures in the discharge of their official duties, (3) exemptions from the sealing or marking requirements of section 2639 of this title with respect to weights and measures of such character or size that such sealing or marking would be inappropriate, impracticable, or damaging to the apparatus in question. These rules shall include specifications, tolerances, and other technical requirements for weights and measures of the character of those specified in section 2635 of this title, designed to eliminate from use, without prejudice to apparatus that conforms as closely as practicable to the official standards, those (1) that are not accurate, (2) that are of such construction that they are faulty, that is, that are not reasonably permanent in their adjustment or will not repeat their indications correctly, or (3) that facilitate the perpetration of fraud.

(b) The specifications, tolerances, and other technical requirements for commercial, law enforcement, data gathering, and other weighing and measuring devices, as adopted by the National Conference on Weights and Measures and published in National Institute of Standards and Technology Handbook 44, “Specifications, Tolerances, and other Technical Requirements for Weighing and Measuring Devices,” and supplements thereto, or revisions thereof, shall apply to weighing and measuring devices in the State, except insofar as modified or rejected by regulation.

(c) The uniform regulation for packaging and labeling, the uniform regulation for unit pricing, the uniform regulation for national type evaluation, and the uniform regulation for the method of sale of commodities, except for bread, as adopted by the National Conference on Weights and Measures, and published by the National Institute of Standards and Technology Handbook 130, “Uniform Laws and Regulations,” together with amendments, supplements, and revisions thereto, are adopted as part of this chapter except as modified or rejected by rule.

(Added 1967, No. 102, § 8, eff. April 14, 1967; amended 1973, No. 22, § 1; 1977, No. 37; 1991, No. 80, § 1; 1991, No. 227 (Adj. Sess.), § 7; 1993, No. 74, § 6; 2015, No. 39, § 19; 2023, No. 160 (Adj. Sess.), § 2, eff. July 1, 2024.)

§ 2634 Testing at State-supported institutions

The Secretary shall test all weights and measures used in checking the receipt or disbursement of supplies in every institution for the maintenance of which monies are appropriated by the Legislature.

(Added 1967, No. 102, § 9, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2635 General testing

(a) When not otherwise provided by law, the Secretary may inspect and test, to ascertain if they are correct, all weights and measures kept, offered, or exposed for sale. The Secretary shall, within a 12-month period, or more or less frequently as deemed necessary, inspect and test, to ascertain if they are correct, all weights and measures commercially used (1) in determining the weight, measurement, or count of commodities or things sold, or offered or exposed for sale, on the basis of weight, measure, or count, or (2) in computing the basic charge or payment for services rendered on the basis of weight, measure, or count. However, with respect to single-service devices—that is, devices designed to be used commercially only once and to be then discarded—and with respect to devices uniformly mass-produced, as by means of a mold or die, and not susceptible of individual adjustment, tests may be made on representative samples of those devices; and the lots of which those samples are representative shall be held to be correct or incorrect upon the basis of the results of the inspections and tests on those samples.

(b) Upon request by the Secretary, the owner or person responsible for a weighing or measuring device subject to the requirements of this chapter shall make the device available for inspection during that business’s normal operating hours and shall provide reasonable assistance as determined by the Secretary to complete the inspection.

(Added 1967, No. 102, § 10, eff. April 14, 1967; amended 1991, No. 80, § 5; 1991, No. 227 (Adj. Sess.), § 7; 2019, No. 129 (Adj. Sess.), § 18.)

§ 2636 Investigations

The Secretary shall investigate complaints made to him or her concerning violations of this chapter, and shall, upon his or her own initiative, conduct such investigations as he or she deems appropriate and advisable to develop information on prevailing procedures in commercial quantity determination and on possible violations of this chapter and to promote the general objective of accuracy in the determination and representation of quantity in commercial transactions.

(Added 1967, No. 102, § 11, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2637 Inspection of packages

The Secretary shall, from time to time, weigh or measure and inspect packages or amounts of commodities kept, offered, or exposed for sale, sold, or in the process of delivery, to determine whether they contain the amounts represented and whether they are kept, offered, or exposed for sale, or sold, in accordance with law; and when those packages or amounts of commodities are found not to contain the amounts represented, or are found to be kept, offered, or exposed for sale in violation of law, the Secretary may order them off sale and may so mark or tag them as to show them to be illegal. In carrying out the provisions of this section, the Secretary may employ recognized sampling procedures under which the compliance of a given lot of packages will be determined on the basis of the result obtained on a sample selected from and representative of the lot. No person may (1) sell, or keep, offer, or expose for sale, in intrastate commerce any package or amount of commodity that has been ordered off sale or marked or tagged as provided in this section unless the package or amount of commodity has been brought into full compliance with all legal requirements, or (2) dispose of any package or amount of commodity that has been ordered off sale or marked or tagged as provided in this section and that has not been brought into compliance with legal requirements, in any manner except with the specific approval of the Secretary.

(Added 1967, No. 102, § 12, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2638 Stop-use, stop-removal, and removal orders

The Secretary may issue stop-use orders, stop-removal orders, and removal orders with respect to weights and measures being, or susceptible of being, commercially used, and issue stop-removal orders and removal orders with respect to packages or amounts of commodities kept, offered, or exposed for sale, sold, or in process of delivery, whenever in the course of his or her enforcement of this chapter he or she deems it necessary or expedient to issue such orders. No person may use, remove from the premises specified, or fail to remove from the premises specified, any weight, measure, or package or amount of commodity contrary to the terms of a stop-use order, stop-removal order, or removal order issued under this section.

(Added 1967, No. 102, § 13, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2639 Disposition of correct and incorrect apparatus

The Secretary shall approve for use and seal or mark with appropriate devices such weights and measures as he or she finds upon inspection and test to be “correct” as defined in section 2633 of this title, and shall reject and mark or tag as “rejected” such weights and measures as he or she finds, upon inspection or test, to be “incorrect” as defined in section 2633 of this title, but that in his or her best judgment are susceptible of satisfactory repair. However, such sealing or marking shall not be required with respect to such weights and measures as may be exempted therefrom by a regulation of the Secretary issued under section 2633 of this title. The Secretary shall condemn, and may seize and may destroy, weights and measures found to be incorrect that, in his or her best judgment, are not susceptible of satisfactory repair. Weights and measures that have been rejected may be confiscated and may be destroyed by the Secretary if not corrected as required by section 2642 of this title, or if used, or disposed of contrary to the requirements of section 2642 of this title.

(Added 1967, No. 102, § 14, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2640 Police powers; right of entry and stoppage

With respect to the enforcement of this chapter and any other laws dealing with weights and measures that he or she is, or may be, empowered to enforce, the Secretary is vested with full police powers, and may arrest, without formal warrant, any violator of those laws, and may seize for use as evidence, without formal warrant, incorrect or unsealed weights and measures or amounts of packages of commodity found to be used, retained, offered, or exposed for sale, or sold, in violation of the law. In the performance of his or her official duties, the Secretary may enter and go into or upon, without formal warrant, any structure or premises, and may stop any person whatsoever and require him or her to proceed, with or without any vehicle of which he or she may be in charge, to some place that the Secretary may specify.

(Added 1967, No. 102, § 15, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2641 Powers and duties of inspector

The powers and duties given to the Secretary by sections 2634-2640 and 2767 of this title are also given to and imposed upon the inspectors when acting under the instructions and at the direction of the Secretary.

(Added 1967, No. 102, § 16, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2642 Duty of owners of incorrect apparatus

Weights and measures that have been rejected under the authority of the Secretary or of an inspector shall remain subject to the control of the rejecting authority until such time as suitable repair or disposition thereof has been made as required by this section. The owners of the rejected weights and measures shall cause them to be made correct within the period authorized by the rejecting authority; or, in lieu of this, may dispose of them, but only in such manner as is specifically authorized by the rejecting authority. Weights and measures that have been rejected shall not again be used commercially until they have been officially re-examined and found to be correct or until specific written permission for that use is issued by the rejecting authority; or until the rejection tag has been removed and the rejected device repaired and placed in service by a person duly registered to do so.

(Added 1967, No. 102, § 17, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2643 Licenses; inspections; penalties

(a) No person shall operate a retail point-of-sale laser scanning check-out system with more than two point-of-sale scanning points without first obtaining a license from the Secretary.

(1) The Secretary may issue a license without first testing the accuracy and use of the point-of-sale laser scanning check-out system pursuant to subsection (b) of this section.

(2) The annual license fee shall be $10.00 per individual point-of-sale scanning point within a store. All single retail units that have two or fewer scanning points shall be exempt from this fee.

(b) The Secretary shall, from time to time, test the accuracy and use of laser scanning and other computer assisted check-out systems in stores. The Secretary shall compare the programmed computer price with the item price of any consumer commodity offered by a store. The store shall provide access to the computer as is necessary to allow the Secretary to conduct the accuracy test. If, upon review, the programmed price of a commodity exceeds the price printed on or the advertised price of the commodity, the store may be subject to license denial, revocation, suspension, or the administrative penalties allowed by 6 V.S.A. § 15 for overcharge errors identified in more than two percent of the commodities reviewed.

(Added 1989, No. 198 (Adj. Sess.), § 2, eff. Jan. 1, 1991; amended 1991, No. 227 (Adj. Sess.), § 7; 2009, No. 134 (Adj. Sess.), § 18; 2015, No. 149 (Adj. Sess.), § 24.)

Subchapter 2 Weights and Measures Standards

§ 2651 Definitions

As used in this chapter, the following words and phrases have the following meanings:

(1) “Commodity in package form” means commodity put up or packaged in any manner in advance of sale in units suitable for either wholesale or retail sale, exclusive, however, of an auxiliary shipping container enclosing packages that individually conform to the requirements of this chapter. An individual item or lot of any commodity not in package form as defined in this section, but on which there is marked a selling price based on an established price per unit of weight or of measure, shall be commodity in package form.

(2) “Commercial weighing and measuring device” shall be construed to include any weight or measure or weighing or measuring device commercially used or employed in establishing the size, quantity, extent, area, or measurement of quantities, things, produce, or articles for distribution or consumption, purchased, offered, or submitted for sale, hire, or award, or in computing any basic charge or payment for services rendered on the basis of weight or measure, and shall also include any accessory attached to or used in connection with a commercial weighing or measuring device when that accessory is so designed or installed that its operation affects, or may affect, the accuracy of the device. “Commercial weighing and measuring device” shall not include:

(A) a device within a plant or business used internally to determine the weight, measure, or count of any commodity or thing while manufacturing, processing, or preparing the commodity or thing for market;

(B) a pharmacy device used for determining the appropriate dosage of any medication or medical treatment; or

(3) “Secretary” means the Secretary of the Agency of Agriculture, Food and Markets or his or her designee.

(4) “Dealer in weighing or measuring devices” means any person or employee thereof who sells, buys, exchanges, or trades commercial weighing or measuring devices in the State.

(5) Definitions of special units of measure. The term “barrel,” when used in connection with fermented liquor, means a unit of 31 gallons. The term “ton” means a unit of 2,000 pounds avoirdupois weight. The term “cord” means the amount of wood that is contained in a space of 128 cubic feet and a run of wood is 42⅔ cubic feet when the wood is ranked and well stowed.

(6) “Inspector” means a State inspector of weights and measures.

(7) “Intrastate commerce” means commerce or trade that is begun, carried on, and completed wholly within the limits of the State of Vermont, and the phrase “introduced into intrastate commerce” shall be construed to define the time and place at which the first sale and delivery being made either directly to the purchaser or to a common carrier for shipment to the purchaser.

(8) “Licensed public weighmaster” means a natural person licensed under this chapter.

(9) “Maple syrup; legal weight and measure” means the legal weight of a gallon of maple syrup shall not be less than 11.07 pounds and the legal measure thereof shall be 231 cubic inches (128 fluid ounces) at 68 degrees F. Whenever maple syrup is sold by the gallon, quart, pint, or gill, or multiple fraction thereof, it must be sold according to that legal weight and measure.

(10) “Person” means both the plural and singular, as the case demands and includes individuals, partnerships, corporations, companies, societies, and associations.

(11) “Service person of weighing and measuring devices” means any person or employee thereof who installs, services, repairs, or reconditions commercial weighing or measuring devices in the State.

(12) “Sell” and “sale” means barter and exchange.

(13) “Standard bushel for apples” means a container having a capacity of not less than one U.S. standard bushel or 2150.42 cubic inches.

(14) “Weights and measures” means all weights and measures of every kind, instruments and devices for weighing and measuring, and any appliances and accessories associated with any or all such instruments and devices including electric vehicle supply equipment available to the public, as defined in subdivision 2730(a)(14) of this title, but not including meters for the measurement of electricity, gas (natural or manufactured), or water when they are operated in a public utility system. Such electricity, gas, and water meters are specifically excluded from the purview of this chapter, and this chapter shall not apply to such meters or to any appliances or accessories associated therewith.

(15) “Vehicle” means any device in, upon, or by which any property, produce, commodity, or article is or may be transported or drawn.

(Added 1967, No. 102, § 2, eff. April 14, 1967; amended 1971, No. 69, § 2, eff. April 15, 1971; 1981, No. 115 (Adj. Sess.); 1991, No. 227 (Adj. Sess.), §§ 2, 7; 2019, No. 59, § 31; 2021, No. 47, § 5.)

§ 2652 Systems of weights and measures

The system of weights and measures in customary use in the United States and the metric system of weights and measures are jointly recognized, and either one or both of these systems shall be used for all commercial purposes in the State of Vermont. The definitions of basic units of weight and measure, the tables of weight and measure, and weights and measures equivalents, as published by the National Institute of Standards and Technology, are recognized and shall govern weighing and measuring equipment and transactions in the State.

(Added 1967, No. 102, § 3, eff. April 14, 1967; amended 1971, No. 69, § 3, eff. April 15, 1971; 1991, No. 227 (Adj. Sess.), § 3.)

§ 2653 State standards of weight and measure

Such weights and measures in conformity with the standards of the United States as have been supplied to the State by the federal government or otherwise obtained by the State for use as State standards shall, when they have been certified as being satisfactory for use as such by the National Institute of Standards and Technology, be the State standards of weight and measure. The State standards shall be kept in a safe and suitable place. They shall not be removed from the laboratory except for repairs or for calibration, or as otherwise necessary to carry out the provisions of this chapter.

(Added 1967, No. 102, § 4, eff. April 14, 1967; amended 1971, No. 69, § 4, eff. April 15, 1971; 1991, No. 227 (Adj. Sess.), § 4.)

§ 2654 Field standards and equipment

In addition to the State standards provided for in section 2653 of this title, there shall be supplied by the State such “field standards” and such equipment as may be found necessary to carry out the provisions of this title. The field standards shall be verified upon their initial receipt and, thereafter, as often as deemed necessary by the Secretary by comparison with the State standards.

(Added 1967, No. 102, § 5, eff. April 14, 1967; amended 1971, No. 69, § 5, eff. April 15, 1971; 1991, No. 227 (Adj. Sess.), § 7.)

§ 2655 Construction of contracts

Fractional parts of any unit of weight or measure shall mean like fractional parts of the value of such unit as prescribed or defined in sections 2651 and 2652 of this title, and all contracts concerning the sale of commodities and services shall be construed in accordance with this requirement.

(Added 1967, No. 102, § 36, eff. April 14, 1967.)

Subchapter 3 Packages and Labeling

§ 2671 Method of sale of commodities; general

Commodities in liquid form shall be sold only by liquid measure or by weight, and, except as otherwise provided in this chapter, commodities not in liquid form shall be sold only by weight, by measure of length or area, or by count. However, liquid commodities may be sold by weight and commodities not in liquid form may be sold by count only if such methods give accurate information as to the quantity of commodity sold. The provisions of this section shall not apply (1) to commodities when sold for immediate consumption on the premises where sold, (2) to vegetables when sold by the head or bunch, (3) to commodities in containers standardized by a law of this State or by federal law, (4) to commodities in package form when there exists a general consumer usage to express the quantity in some other manner, (5) to concrete aggregates, concrete mixtures, and loose solid materials such as earth, soil, gravel, crushed stone, and the like, when sold by cubic measure, or (6) to unprocessed vegetable and animal fertilizer when sold by cubic measure. The Secretary may issue such reasonable regulations as are necessary to ensure that amounts of commodity sold are determined in accordance with good commercial practice and are so determined and represented as to be accurate and informative to all parties at interest.

(Added 1967, No. 102, § 18, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2672 Packages, declarations of quantity and origin; variations; exemptions

(a) Except as otherwise provided in this chapter, any commodity in package form introduced or delivered for introduction into or received in intrastate commerce, kept for the purpose of sale, or offered or exposed for sale in intrastate commerce, shall bear on the outside of the package such definite, plain, and conspicuous declarations of:

(1) the identity of the commodity in the package unless the same can easily be identified through the wrapper or container;

(2) the net quantity of the contents in terms of weight, measure, or count; and

(3) in the case of any package kept, offered, or exposed for sale, or sold any place other than on the premises where packed, the name and place of business of the manufacturer, packer, or distributor as may be prescribed by regulation issued by the Secretary.

(b) In connection with the declaration required under subdivision (a)(2) of this section, neither the qualifying term “when packed” or any words of similar import, nor any term qualifying a unit of weight, measure, or count, for example, “jumbo,” “giant,” “full,” and the like, that tends to exaggerate the amount of commodity in a package, may be used. Under subdivision (a)(2) of this section the Secretary may, by regulation, establish: reasonable variations to be allowed, which may include variations below the declared weight or measure caused by ordinary and customary exposure, only after the commodity is introduced into intrastate commerce, to conditions that normally occur in good distribution practice and that unavoidably result in decreased weight or measure; exemptions as to small packages; and exemptions as to commodities put up in variable weights or sizes for sale intact and either customarily not sold as individual units or customarily weighed or measured at time of sale to the consumer.

(Added 1967, No. 102, § 19, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2673 Declarations of unit price on random packages

In addition to the declarations required by section 2672 of this title, any commodity in package form, the package being one of a lot containing random weights, measures, or counts of the same commodity and bearing the total selling price of the package, shall bear on the outside of the package a plain and conspicuous declaration of the price per single unit of weight, measure, or count.

(Added 1967, No. 102, § 20, eff. April 14, 1967.)

§ 2674 Misleading packages

No commodity in package form may be so wrapped, nor may it be in a container so made, formed, or filled as to mislead the purchaser as to the quantity of the contents of the package, and the contents of a container shall not fall below such reasonable standard or fill as may have been prescribed for the commodity in question by the Secretary.

(Added 1967, No. 102, § 21, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2675 Advertising packages for sale

Whenever a commodity in package form is advertised in any manner and the retail price of the package is stated in the advertisement, there shall be closely and conspicuously associated with that statement of price a declaration of the basic quantity of contents of the package as is required by law or regulation to appear on the package. When fruit packaged, graded by the packer, and sold by count is advertised, the advertisement must state the size. In connection with the declaration required under this section, there shall be declared neither the qualifying term “when packed” nor any other words of similar import, nor any term qualifying a unit of weight, measure, or count, for example, “jumbo,” “giant,” “full,” and the like, that tends to exaggerate the amount of commodity in the package.

(Added 1967, No. 102, § 22, eff. April 14, 1967; amended 1971, No. 69, § 6, eff. April 15, 1971.)

§ 2676 Sale by net weight

The word “weight” as used in this chapter in connection with any commodity shall mean net weight. Whenever any commodity is sold on the basis of weight, the net weight of the commodity shall be employed, and all contracts concerning commodities shall be so construed.

(Added 1967, No. 102, § 23, eff. April 14, 1967.)

§ 2677 Misrepresentation of price

Whenever any commodity or service is sold, or is offered, exposed, or advertised for sale, by weight, measure, or count, the price shall not be misrepresented, nor shall the price be represented in any manner calculated or tending to mislead or deceive an actual or prospective purchaser. Whenever an advertised, posted, or labeled price per unit of weight, measure, or count includes a fraction of a cent, all elements of the fraction or decimal shall be prominently displayed and the numeral or numerals expressing the fraction or decimal shall be immediately adjacent to, of the same general design and style as, and at least 40 percent the height and width of, the numerals representing the whole cents.

(Added 1967, No. 102, § 24, eff. April 14, 1967.)

Subchapter 4 Specific Weights and Measures

§ 2691 Meat, poultry, and seafood

Except for immediate consumption on the premises where sold or as one of several elements comprising a ready-to-eat meal sold by an eating establishment as a unit for consumption elsewhere than on the premises where sold, all meat, meat products, poultry, and all seafoods except mollusks offered or exposed for sale, or sold, as food shall be sold by weight. When meat, poultry, or seafood is combined with or associated with some other food elements to form either a distinctive food product or a food combination, such food product or combination shall be offered or exposed for sale and sold by weight, and the quantity representation may be the total weight of the product or combination, and a quantity representation need not be made for each of the several elements of the product or combination. Mollusks may be sold by weight or volume, but not by count except for oysters in the shell. On ready-to-cook, whole carcass, stuffed poultry, ready-to-cook stuffed poultry roasts, rolls, bars, and logs, and ready-to-cook stuffed poultry products designated by terms of similar import, the label must show the total net weight of the poultry product and, in proximity thereto, a statement specifying the minimum weight of poultry in the product.

(Added 1967, No. 102, § 25, eff. April 14, 1967; amended 1971, No. 69, § 7, eff. April 15, 1971.)

§ 2692 Bulk milk tanks

(a) When installing a farm bulk tank or reconstructing a floor area supporting a bulk tank, the tank shall not be placed in service and used as a commercial measuring device unless a foundation has been constructed with due consideration of frost penetration and of sufficient strength to support the completely liquid-laden tank without change of level, and a steel plate not less than six inches square and not less than one-quarter inch thick is placed under each leg and the steel plate and the tank legs are cemented to the floor. Bulk tanks shall be calibrated using accepted practices approved by the consumer protection section as soon as possible after the milk house and bulk tank installation has been approved by the dairy section.

(b) Whenever a check of a bulk milk tank by the Agency of Agriculture, Food and Markets or by a competent person or agency indicates a tank calibration is not accurate within official tolerances, the first handler receiving milk from the producer shall recalibrate the tank, unless the out-of-tolerance is caused by movement of the tank and the Secretary feels there will be continued movement, then the recalibration shall not be performed until a solid foundation has been constructed.

(c) If the Secretary determines the bulk milk tank is not an accurate measure for milk or because of continued movement of the tank caused by a poor foundation, the Secretary may condemn the tank and forbid its use as a measuring device. Any person who alters a bulk tank weight conversion chart, uses other than the latest conversion chart issued, uses a condemned tank as a measure, uses a tank without the legs cemented to the floor, or changes the level position of a bulk milk tank without immediately notifying the Secretary of Agriculture, Food and Markets shall be fined not more than $500.00 for each offense.

(d) The first handler receiving milk from a producer shall furnish competent personnel licensed by the consumer protection section to calibrate the producer’s bulk milk tank. The word “handler” as used in this subsection shall mean a person, firm, unincorporated association, or corporation engaged in the business of buying, selling, assembling, packaging, or processing milk or other dairy products, for sale within or outside the State of Vermont.

(e) [Repealed.]

(Added 1967, No. 102, § 26, eff. April 14, 1967; amended 1971, No. 69, § 14, eff. April 15, 1971; 1973, No. 22, § 2; 1989, No. 257 (Adj. Sess.), § 16; 1991, No. 186 (Adj. Sess.),§§ 36a, 36b, eff. May 7, 1992; 1991, No. 227 (Adj. Sess.), § 7; 1999, No. 49, § 128(1); 2011, No. 39, § 8, eff. May 19, 2011; 2013, No. 159 (Adj. Sess.), § 10.)

§ 2693 Log measure—The Vermont rule

In bargains for or purchase of saw logs or round timber by measure, the number of feet shall be ascertained either by the international log rule as designed by the U.S. Forestry Service for a one-quarter inch kerf or by the Vermont rule as follows: multiply the average diameter of the top of the log, inside the bark, in inches, by half such diameter in inches, disregarding fractions of an inch less than a half, and regarding fractions greater than a half as a full inch, and the number obtained as the product will represent the contents in feet of a log of that diameter 12 feet long. If the log is less than 12 feet long, the actual contents will be the same fraction of the above product as the actual length of the log is of 12 feet. If the log is more than 12 feet long, commence at the upper end and measure it into sections of 12 feet; then, according to the above rule, find the contents of each section and fractional section. The aggregate of the contents of the sections will be the contents of the whole log, and shall be marked on the small end as to its contents.

(Added 1967, No. 102, § 27, eff. April 14, 1967.)

§ 2694 Repealed

[Repealed]

2001, No. 39, § 4.

§ 2695 Fluid dairy products

All fluid dairy products, including whole milk, skimmed milk, cultured milk, sweet cream, and buttermilk, shall be packaged for retail sale only in units of 1 gill, 1/2 liquid pint, 10 fluid ounces, 1 liquid pint, 1 liquid quart, 1/2 gallon, 1 gallon, 11/2 gallons, 2 gallons, and 21/2 gallons, or multiples of 1 gallon. Packages in units of less than 1 gill shall be permitted. On and after January 1, 1974, sour cream and yogurt shall be sold only in terms of weight, and shall be packaged for retail sale only in units of 4, 8, 12, 16, 32, 64 and 128 ounces avoirdupois except yogurt may also be sold in units of 5 and 6 ounces avoirdupois.

(Added 1967, No. 102, § 29, eff. April 14, 1967; amended 1969, No. 9, § 1; 1971, No. 69, § 8, eff. April 15, 1971; 1973, No. 22, § 3.)

§ 2696 Flour, corn meal, and hominy grits

When in package form, and when packed, kept, offered or exposed for sale, or sold, wheat flour, whole wheat flour, graham flour, self-rising wheat flour, phosphated wheat flour, bromated flour, enriched flour, enriched self-rising flour, enriched bromated flour, corn flour, corn meal, and hominy grits shall be packaged only in units of 2, 5, 10, 25, 50, or 100 pounds, avoirdupois weight. However, packages in units of less than 2 pounds or more than 100 pounds are permitted.

(Added 1967, No. 102, § 30, eff. April 14, 1967; amended 1971, No. 69, § 9, eff. April 15, 1971.)

§ 2697 Liquid fuels

(a) Liquid fuels including motor fuels, furnace oils, stove oils, liquefied petroleum gas, and other liquid fuels used for similar purposes shall be sold by liquid measure or by net weight in accordance with the provisions of section 2671 of this title. In the case of each delivery of liquid fuel not in package form, and in an amount greater than 10 gallons in the case of sale by liquid measure or 99 pounds in the case of sale by weight, there shall be rendered to the purchaser, either:

(1) at the time of delivery; or

(2) within a period mutually agreed upon in writing or otherwise between the vendor and the purchaser, a delivery ticket or a written statement on which, in ink, or other indelible substance, there shall be clearly and legibly stated:

(A) the name and address of the vendor;

(B) the name and address of the purchaser;

(D) the unit price, that is, the price per gallon or per pound, as the case may be, of the fuel delivered;

(E) in the case of sale by liquid measure, the liquid volume of the delivery shall be determined by a meter with a register printing the meter readings on a ticket, a copy of which shall be given to the purchaser, from which such liquid volume shall be computed, expressed in terms of the gallon and its binary or decimal subdivisions (the ticket shall not be inserted into the register until immediately before delivery is begun, and in no case shall a ticket be in the register when the vehicle is in motion); or the liquid volume may be determined by a vehicle tank used as a measure when in full compliance with Handbook H-44 and calibrated by a weights and measures official. Sale by a liquid measuring device as defined in Handbook H-44, and sale by a vapor meter are excluded from this section. The volume of liquid fuels delivered on consignment shall be computed and charged for only from the totalizers on the devices dispensing the product;

(F) in the case of sale by weight, the net weight of the delivery, together with any weighing scale readings from which that net weight has been computed, expressed in terms of tons or pounds avoirdupois.

(b) The use of temperature compensation during delivery of all liquid fuels, with the exception of the delivery of liquefied petroleum gas, is prohibited. The Secretary shall enforce this prohibition in the same manner as other violations of this chapter.

(Added 1967, No. 102, § 31, eff. April 14, 1967; amended 1971, No. 69, § 10, eff. April 15, 1971; 2013, No. 83, § 6, eff. June 10, 2013.)

§ 2697a Motor fuel octane content and quality

(a) It shall be unlawful for a person to misrepresent the octane content or the quality of motor fuel sold or offered for sale in this State. The Secretary may randomly test motor fuel dispensers and motor fuel for the accuracy of any advertised, labeled, or other declarations regarding the octane content and the quality of the fuel dispensed.

(b) The Secretary may adopt rules concerning octane and quality standards for motor fuels deemed necessary to carry out the provisions of this section.

(d) Any person who sells gasoline to a retail outlet and any person who sells gasoline to the public shall maintain records as required under 15 U.S.C. § 2821 et seq. and the rules adopted thereunder, and shall provide copies of such records to the Secretary upon request.

(Added 1991, No. 31, § 1; amended 1991, No. 244 (Adj. Sess.), § 1, eff. May 28, 1992; 1991, No. 227 (Adj. Sess.), § 7; 1999, No. 49, § 128(2).)

§ 2698 Textile products

A person shall not keep for the purpose of sale, offer or expose for sale, or sell, any textile yard goods put up or packaged in advance of sale in a bolt or roll, or any other textile product put up or packaged in advance of sale in any other unit, for either wholesale or retail sale, unless that bolt or roll, or such other unit, is definitely, plainly, and conspicuously marked to show its net measure in terms of yards or its net weight in terms of avoirdupois pounds or ounces, subject, however, to the following limitations and requirements:

(1) Any unit of twine or cordage may be marked to show its net measure in terms of feet. Ready-wound bobbins that are not sold separately shall not be required to be individually marked, but the package containing those bobbins shall be marked to show the number of bobbins contained therein and the net weight or measure of the thread on each bobbin. Any unit of sewing, basting, mending, darning, crocheting, tatting, handknitting, or embroidery thread or yarn, except nylon handknitting yarn, that is not composed in whole or in part of wool, the net weight of which is less than two ounces avoirdupois, shall be marked to show its net measure in terms of yards as unwound from the ball or from the spool or other holder. Any retail unit of a textile product, sold only for household use, consisting of a package containing two or more similar individual units that are not sold separately, shall be marked to show the number of individual units in the package and the net weight or net measure of the product in each individual unit, but this proviso shall not apply where the individual units are separately marked. Any unit of yarn, composed in whole or in part of wool, sold to consumers for handiwork, shall be marked to show the net weight of such yarn, except that any such unit of tapestry, mending, or embroidery yarn, the net measure of which does not exceed 50 yards, may be marked to show its linear measures only.

(2) The marking required by this section shall in all cases be in combination with the name and place of business of the manufacturer, packer, or distributor of the product, or a trademark, symbol, brand, or other mark that positively identifies such manufacturer, packer, or distributor. Any such trademark, symbol, brand, or other mark that is employed to identify the manufacturer, packer, or distributor shall be filed with the Secretary.

(3) Reasonable tolerances may be permitted, and these may be included in regulations for the enforcement of this section that shall be issued by the Secretary.

(4) This section shall not apply to the following textile products when sold at wholesale in bulk by net weight: cordage, agricultural bag sewing threads, twines, yarns that are to be processed, and yarns that are to be industrially converted into end use products.

(Added 1967, No. 102, § 32, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2699 Berries and small fruits

Berries and small fruits shall be offered and exposed for sale and sold by weight, or by measure in open containers having capacities of 1/2 dry pint, 1 dry pint, or 1 dry quart. However, the marking provisions of section 2672 of this title shall not apply to those containers.

(Added 1967, No. 102, § 33, eff. April 14, 1967.)

§ 2700 Coal, coke, and charcoal

All coal, coke, and charcoal shall be sold by weight. Unless the fuel is delivered to the purchaser in package form, each delivery of coal, coke, or charcoal to an individual purchaser shall be accompanied by duplicate delivery tickets on which, in ink or other indelible substance, there shall be clearly stated (1) the name and address of the vendor, (2) the name and address of the purchaser, and (3) the net weight of the delivery and the gross and tare weights from which the net weight is computed, each expressed in pounds. One of these tickets shall be retained by the vendor and the other shall be delivered to the purchaser at the time of delivery of the fuel, or shall be surrendered, on demand, to the Secretary, or an inspector, who, if he or she desires to retain it as evidence, shall issue a weight slip in lieu thereof for delivery to the purchaser. However, if the purchaser carries away his or her purchase, the vendor shall be required only to give to the purchaser at the time of sale a delivery ticket stating the number of pounds of fuel delivered to him or her. If necessary to wet down coal and coke, this shall be done only after coal is weighed according to this section.

(Added 1967, No. 102, § 34, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2701 Ice

Ice shall be sold by weight. The net weight of ice dispensed by a vending machine shall be presented clearly and conspicuously on the front panel near coin slot. This section shall not apply to ice sold by hotels or motels and to be consumed on the premises.

(Added 1967, No. 102, § 35, eff. April 14, 1967.)

Subchapter 5 Licensing of Public Weighmasters and Dealers and Service Persons of Weights and Measure Devices

§ 2721 Licensed public weighmaster—license

Any person who is 18 years of age or older wishing to be a licensed public weighmaster shall apply to the Secretary upon forms provided by the Agency and remit a fee of $25.00. Upon approval, the Secretary shall issue to the applicant a license certificate that shall expire on June 30 unless sooner suspended or revoked under section 2723 of this title. Renewal applications shall be in such form as the Secretary shall prescribe.

(Added 1967, No. 102, § 41, eff. April 14, 1967; amended 1969, No. 9, § 2; 1971, No. 69, § 11, eff. April 15, 1971; 1975, No. 220 (Adj. Sess.), § 17; 1989, No. 257 (Adj. Sess.), § 17; 1991, No. 227 (Adj. Sess.), § 7; 2001, No. 143 (Adj. Sess.), § 41, eff. June 21, 2002; 2009, No. 134 (Adj. Sess.), § 15; 2015, No. 149 (Adj. Sess.), § 25.)

§ 2722 Optional licensing

The following persons shall not be required, but shall be permitted, to obtain licenses as licensed public weighmasters: (1) law enforcement officers when acting within the scope of their official duties, (2) a person weighing property, produce, commodities, or articles that he or his employer, if any, is either buying or selling, and (3) a person weighing property, produce, commodities, or articles in conformity with the requirements of federal statutes or the statutes of this State relative to warehousepersons or processors.

(Added 1967, No. 102, § 48, eff. April 14, 1967.)

§ 2723 Suspension and revocation of license

The Secretary may suspend or revoke the license of any licensed public weighmaster:

(1) when he or she is satisfied, after a hearing upon 20 days’ notice to the licensee, that the licensee has violated any provision of this chapter or of any rule or regulation issued pursuant to this chapter of the Secretary affecting licensed public weighmaster; or

(2) when a licensed weighmaster has been convicted in any court of violating any law relating to weights and measures.

(Added 1967, No. 102, § 50, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), §§ 5, 7.)

§ 2724 Prohibited acts

No person may assume the title licensed public weighmaster, or any title of similar import, perform the duties or acts to be performed by a licensed public weighmaster under this chapter, hold himself or herself out as a licensed public weighmaster, issue any weight certificate, ticket, memorandum, or statement for which a fee is charged, or engage in the full-time or part-time business of public weighing, unless he or she holds a valid license as a licensed public weighmaster. “Public weighing,” as used in this section, means the weighing for any person, upon request, of property, produce, commodities, or articles other than those which the weigher or his or her employer, if any, is either buying or selling.

(Added 1967, No. 102, § 49, eff. April 14, 1967.)

§ 2725 Dealers and service persons of weighing and measuring devices; registration certificate; hand seal

(a) Any person wishing to be registered as a dealer or service person shall apply to the Secretary upon forms provided by the Agency, and each application shall be accompanied by a fee of $60.00. Upon approval, the Secretary shall issue to the applicant a registration certificate that shall expire on June 30 unless sooner suspended or revoked under section 2726 of this title. Any service person who applies for a registration certificate must have obtained a hand seal that has a number registered with the Secretary. Any service person who has been granted a registration certificate shall, with the hand seal, seal all meters with a lead and wire seal at the time as he or she installs, repairs, or adjusts the meters.

(b) Any person who installs bulk milk tanks for remuneration or as a term of the sale of such tank shall be registered as a dealer of weighing and measuring devices, prior to the installation of the tank. Such person shall follow the procedure set forth in subsection (a) of this section in applying for the registration certificate and shall comply with all applicable laws.

(Added 1967, No. 102, § 54, eff. April 14, 1967; amended 1971, No. 69, § 12, eff. April 15, 1971; 1975, No. 220 (Adj. Sess.), § 18; 1983, No. 57; 1989, No. 257 (Adj. Sess.), § 18; 1991, No. 227 (Adj. Sess.), § 7; 2001, No. 143 (Adj. Sess.), § 42, eff. June 21, 2002; 2009, No. 134 (Adj. Sess.), § 16; 2015, No. 149 (Adj. Sess.), § 26.)

§ 2726 Suspension or revocation of certificate

The Secretary may suspend or revoke the certificate of any registered dealer or service person when he or she is satisfied after a hearing, upon 20 days’ notice to the registrant, that the registrant has violated any provision of this chapter or any rule issued pursuant to this chapter, or when a person licensed pursuant to this section has been convicted by a court of violating any law relating to weights and measures.

(Added 1967, No. 102, § 58, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), §§ 6, 7.)

§ 2727 Placed in service report

The Secretary shall furnish each registered dealer and service person with a supply of report forms to be known as “placed in service reports.” Such a form shall be executed in triplicate, shall include the assigned registration number, and shall be signed by a registered dealer or service person after making a repair, adjustment, or the sale and installation of a new, repaired, rebuilt, exchanged, or used weighing or measuring device. Within 48 hours after a device is restored to service, or placed in service, the original of the properly executed placed in service report, together with any official rejection tag removed from the device, shall be mailed to the Secretary, Agency of Agriculture, Food and Markets agriculture building, Montpelier, Vermont. The duplicate copy of the report shall be handed to the owner or operator of the device, and the triplicate copy of the report shall be retained by the registered dealer or service person.

(Added 1967, No. 102, § 55, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2728 Disposition of condemned devices

A dealer or service person who accepts weighing or measuring devices, which have been condemned by the Secretary or inspector, in trade for new or used weighing or measuring devices, and which are intended to be dismantled or destroyed, upon receipt thereof, shall remove the condemned tags. The condemned tags shall be returned to the Secretary within 10 days thereafter, with a statement describing the weighing or measuring device, giving the number of the weighing or measuring device, if obtainable, and the name and address of the former owner or user from which it was received. There shall also be furnished a statement of what disposition has been made of the weighing or measuring device.

(Added 1967, No. 102, § 56, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2729 Calibration of testing equipment; certificate

A dealer or service person shall submit his or her testing equipment at least once every year to the office of the Secretary for comparison and calibration with the standard maintained by the Secretary. After comparison and calibration, the Secretary shall issue to the dealer or service person a certificate of his or her findings.

(Added 1967, No. 102, § 57, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2730 Licensing for operation of weighing and measuring devices

(a) As used in this section:

(1) “Secretary” means the Secretary of Agriculture, Food and Markets.

(2) “Capacity” means, for a scale, the heaviest specified load that can be applied to the load-receiving element of the scale, as rated by the manufacturer.

(3) “Hopper scale” means a weighing device designed for weighing bulk commodities whose load-receiving element is a tank, box, or hopper mounted on a weighing element.

(4) “Motor fuel dispenser meter” means a device designed for the measurement and delivery of liquids used as fuel for internal combustion engines.

(5) “Scale” means any weighing device used in commercial trade and not otherwise covered by this chapter.

(6) “Meter” means any measuring device used in commercial trade that measures vapor, liquid, elapsed time, or distance.

(7) “Vehicle tank meter” means a measuring device that is affixed to a tank mounted on a vehicle used for the measurement and delivery of petroleum products, except liquified petroleum gas.

(8) “Vehicle scales” mean scales adapted to weighing highway, farm, or other large industrial vehicles, except railroad freight cars, loaded or unloaded.

(9) “Heavy duty scale” means a device with rated capacity in excess of 3,000 pounds.

(10) “Propane meter” means a device used to measure liquified petroleum gas.

(11) “Bulk plant meter” means a device used to measure fluid or gas moving from storage tanks to tanks mounted on vehicles.

(12) “Commercial” means the exchange or buying and selling of goods, commodities, or services for profit or fee.

(13) “Medium duty scale” means a device with rated capacity between 100 and 3,000 pounds.

(14) “Electric vehicle supply equipment” and “electric vehicle supply equipment available to the public” have the same meanings as in 30 V.S.A. § 201.

(b) No person shall operate a commercial weighing and measuring device without first obtaining a license from the Secretary. Any person operating commercial weighing and measuring devices at more than one location, or in more than one motor vehicle, shall obtain a separate license for each location or vehicle.

(c) Any person wishing to obtain a license to operate a weighing or measuring device shall annually apply to the Secretary, on forms provided by the Secretary, on or before January 1. Each application shall be accompanied by a fee as specified in this section. Except for new applicants, any applicant who applies for a license after January 1 shall pay a late fee as provided for under 6 V.S.A. § 1(a)(13).

(d) The Secretary may suspend, revoke, or deny a license application if the licensee, or applicant, has violated any provision of this chapter. The Secretary may require reapplication and payment of appropriate fees whenever excessive inspections are required to ensure the credibility of a commercial device. A person in violation of this section shall be subject to penalty under subchapter 7 of this chapter.

(e) The Secretary shall not issue a weighing and measuring device license unless:

(1) the device to be operated has been inspected and approved by the Agency of Agriculture, Food and Market’s consumer assurance section within 12 months of the date of application or within a longer period as the Agency determines appropriate for the specific device at issue, provided that the period shall not extend more than 24 months from the date of application; and

(2) the applicant furnishes all information required by the Secretary.

(f)(1) The Secretary shall charge, per unit, the following annual license fees:

(A) Retail motor fuel dispenser meter: $25.00.

(B) Vehicle tank meter: $125.00.

(D) Vehicle and heavy duty scales: $175.00.

(E) Each distinct plug-in connection point of electric vehicle supply equipment available to the public: $25.00.

(F) Meter: $25.00.

(G) [Repealed.]

(H) Truck mounted propane meter: $175.00.

(I) Hopper scales: $125.00.

(J) Propane fill station: $60.00.

(K) Medium duty scales:

portable platform scales: $35.00.

(2) When the Agency incurs expenses when conducting a licensing procedure greater than those normally incurred, the Agency shall assess and retain a service charge sufficient to recoup its additional expenses.

(g) [Repealed.]

(h) The Secretary may waive the license fee for medium duty scales for commercial enterprises that operate the scales primarily as a public service.

(Added 1989, No. 257 (Adj. Sess.), § 19; amended 1991, No. 31, §§ 2-4, eff. Jan. 1, 1992; 1991, No. 80, §§ 2-4; 1991, No. 227 (Adj. Sess.), § 7; 1993, No. 74, §§ 7, 7a; 1995, No. 128 (Adj. Sess.), §§ 6, 7; 1999, No. 49, § 129; 2001, No. 143 (Adj. Sess.), § 43, eff. June 21, 2002; 2009, No. 134 (Adj. Sess.), § 17; 2013, No. 72, § 21; 2013, No. 159 (Adj. Sess.), § 11(g), eff. July 1, 2016; 2015, No. 149 (Adj. Sess.), § 27; 2017, No. 74, § 15; 2017, No. 75, § 6; 2019, No. 59, § 32; 2023, No. 73, § 4, eff. July 1, 2023; 2023, No. 78, § E.223, eff. July 1, 2023.)

Subchapter 6 Weight Certificates

§ 2741 Weight certificate; required entries

The weight certificate shall be typed, made out in ink or other indelible substance, and shall state the date of issuance; the kind of property, produce, commodity, or article weighed; the name of the declared owner or agent of the owner or of the consignee of the material weighed; the accurate weight of the material weighed; the means by which the material was being transported at the time it was weighed; and such other available information as may be necessary to distinguish or identify the property, produce, commodity, or article from others of like kind. The weight certificate, when so made and properly signed, shall be prima facie evidence of the accuracy of the weights shown.

(Added 1967, No. 102, § 42, eff. April 14, 1967.)

§ 2742 Execution; requirements

A licensed public weighmaster shall not enter on a weight certificate issued by him or her any weight values but such as he or she has personally determined, and he or she shall make no entries on a weight certificate issued by some other person. A weight certificate shall be so prepared as to show clearly that weight or weights were actually determined. If the certificate form provides for the entry of gross, tare, and net weights, in any case in which only the gross, the tare, or the net weight is determined by the weighmaster, he or she shall strike through or otherwise cancel the printed entries for the weights not determined or computed. If gross and tare weights are shown on a weight certificate and both of these were not determined on the same scale and on the day for which the certificate is dated, the weighmaster shall identify on the certificate the scale used for determining each such weight and the date of each such determination.

(Added 1967, No. 102, § 43, eff. April 14, 1967.)

§ 2743 Scale used; type; test

When making a weight determination as provided by this chapter, a licensed public weighmaster shall use a weighing device that is of a type suitable for the weighing of the amount and kind of material to be weighed and that has been tested and approved for use by the Secretary or inspector during the year of test or the preceding calendar year and since has not been condemned.

(Added 1967, No. 102, § 44, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2744 Capacity; platform size; one-draft weighing

A licensed public weighmaster shall not use any scale to weigh a load the value of which exceeds the nominal or rated capacity of the scale. When the gross or tare weight of any vehicle or combination of vehicles is to be determined, the weighing shall be performed upon a scale having a platform of sufficient size to accommodate such vehicle or combination of vehicles fully, completely, and as one entire unit. If a combination of vehicles must be broken up into separate units in order to be weighed as prescribed in this section, each such separate unit shall be entirely disconnected before weighing and a separate weight certificate shall be issued for each such separate unit.

(Added 1967, No. 102, § 45, eff. April 14, 1967; amended 2021, No. 20, § 28.)

§ 2745 Copies of weight certificates

A licensed public weighmaster shall keep and preserve for at least one year, or for such longer period as may be specified in the regulations authorized to be issued for the enforcement of this chapter, a legible carbon copy of each weight certificate issued by him or her, which copies shall be open at all reasonable times for inspection by any weights and measures officer of this State.

(Added 1967, No. 102, § 46, eff. April 14, 1967.)

§ 2746 Bulk delivery

When not weighed by a “public licensed weighmaster,” each delivery of a commodity, product, or merchandise in bulk form, including grain, feed, fertilizer, cement, lime, and hay when sold by weight, and delivered by vehicle, the provisions under sections 2741-2745 of this title inclusive shall govern.

(Added 1967, No. 102, § 40, eff. April 14, 1967.)

§ 2747 Reciprocal acceptance of weight certificates

Whenever in any other state that licenses public weighmasters, there is statutory authority for the recognition and acceptance of the weight certificates issued by licensed weighmasters of this State, the Secretary may recognize and accept the weight certificates of that other state.

(Added 1967, No. 102, § 47, eff. April 14, 1967 amended 1991, No. 227, (Adj. Sess.), § 7.)

Subchapter 7 Penalties

§ 2761 Offenses and penalties

Any person who, by his or her actions or through the actions of an agent, performs any one of the acts enumerated in subdivisions (1) through (11) of this section shall be fined not less than $20.00 or more than $200.00, or be imprisoned not more than three months, or both; and upon a second or subsequent conviction thereof, he or she shall be fined not less than $50.00 or more than $500.00, or be imprisoned, or both.

(1) Use, or have in possession for the purpose of using for any commercial purpose specified in section 2635 of this title, sell, offer, or expose for sale or hire, or have in possession for the purpose of selling or hiring, an incorrect weight or measure or any device or instrument used to or calculated to falsify any weight or measure.

(2) Use, or have in possession for the purpose of current use for any commercial purpose specified in section 2635 of this title, a weight or measure that does not bear a seal or mark such as is specified in section 2639 of this title, unless such weight or measure has been exempted from testing by the provisions of section 2635 of this title, or by a regulation of the Secretary issued under the authority of section 2633 of this title, or unless the device has been placed in service as provided by a regulation of the Secretary issued under the authority of section 2633 of this title.

(3) Dispose of any rejected or condemned weight or measure in a manner contrary to law or regulation.

(4) Remove from any weight or measure, contrary to law or regulation, any tag, seal, or mark placed thereon by the appropriate authority.

(5) Sell, or offer or expose for sale, less than the quantity he or she represents of any commodity, thing, or service.

(6) Take more than the quantity he or she represents of any commodity, thing, or service, when, as buyer, he or she furnishes the weight or measure by means of which the amount of the commodity, thing, or service is determined.

(7) Keep for the purpose of sale, advertise, or offer or expose for sale, or sell, any commodity, thing, or service in a condition or manner contrary to law or regulation.

(8) Use in retail trade, except in the preparation of packages put up in advance of sale and of medical prescriptions, a weight or measure that is not so positioned that its indications may be accurately read and the weighing or measuring operation observed from some position that may reasonably be assumed by a customer.

(9) Violate any provision of this chapter or of the regulations promulgated under the provisions of this chapter for which a specific penalty has not been prescribed.

(10) Act as a licensed public weighmaster without first obtaining a license or certificate to do so, or at a time when such license is suspended or revoked.

(11) Misrepresent the true weight, volume, or other measurement of any item which is the subject of a commercial transaction.

(Added 1967, No. 102, § 39, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.),§§ 6a, 7; 1993, No. 74, § 8.)

§ 2762 Hindering or obstructing officer

Any person who hinders or obstructs in any way the Secretary, the Deputy Secretary, or any one of the inspectors, or a sealer or deputy sealer, in the performance of his or her official duties shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than $20.00 or more than $200.00, or by imprisonment for not more than three months, or by both.

(Added 1967, No. 102, § 37, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2763 Impersonation of officer

Any person who impersonates in any way the Secretary, the Deputy Secretary, or any one of the inspectors, or a sealer or deputy sealer, by the use of his or her seal or a counterfeit of his or her seal, or in any other manner, shall be fined not less than $100.00 nor more than $500.00, or be imprisoned not more than 1 year, or both.

(Added 1967, No. 102, § 38, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2764 Incorrect weight certificates

Any person who requests a licensed public weighmaster to weigh any property, produce, commodity, or article falsely or incorrectly, or who requests a false or incorrect weight certificate, or any person who issues a weight certificate simulating the weight certificate prescribed in this chapter and who is not a licensed public weighmaster, shall be fined not less than $25.00 or more than $100.00; and upon a second or subsequent conviction that person shall be fined not less than $100.00 or more than $500.00, or be imprisoned not less than 30 days or more than 90 days, or both.

(Added 1967, No. 102, § 51, eff. April 14, 1967.)

§ 2765 Malfeasance

Any licensed public weighmaster who falsifies a weight certificate, or who delegates his or her authority to any person not licensed as a licensed public weighmaster, shall be fined not less than $50.00 or more than $500.00, or be imprisoned not less than 30 days or more than 90 days, or both.

(Added 1967, No. 102, § 52, eff. April 14, 1967.)

§ 2766 Replacement of security seal; improper handling of weighing or measuring device

(a) Any service person who breaks a security seal must replace the security seal by installing a new lead and wire security seal bearing the imprint of his or her hand seal having a number registered with the Agency of Agriculture, Food and Markets.

(b) Any person who violates any provision of sections 2725, 2727, 2728, 2729 inclusive of this title or a dealer or service person who does not have a certificate of registration in full force before engaging in that business, or any person who repairs his or her own weighing or measuring device, or breaks a security seal without a license and uses the device commercially before being tested by the Agency of Agriculture, Food and Markets or permission is given for its use by the Secretary, shall be fined not more than $100.00 for the first offense and not more than $200.00 for each subsequent offense.

(Added 1967, No. 102, § 59, eff. April 14, 1967; amended 1971, No. 69, § 13, eff. April 15, 1971; 1989, No. 256 (Adj. Sess.), § 10(a), eff. Jan. 1, 1991; 1991, No. 227 (Adj. Sess.), § 7.)

§ 2767 Injunction

The Secretary may apply to any court of competent jurisdiction for, and the court upon hearing and for cause shown may grant, a temporary or permanent injunction restraining any person from violating this chapter.

(Added 1967, No. 102, § 60, eff. April 14, 1967; amended 1991, No. 227 (Adj. Sess.), § 7.)

§ 2768 Validity of prosecutions

Prosecutions for violation of this chapter are declared to be valid and proper notwithstanding the existence of any other valid general or specific act of this State dealing with matters that may be the same as or similar to those covered by this chapter.

(Added 1967, No. 102, § 61, eff. April 14, 1967.)

§ 2769 Presumptive evidence

For the purposes of this chapter, proof of the existence of a weight or measure or a weighing or measuring device in or about any building, enclosure, stand, or vehicle in which or from which it is shown that buying or selling is commonly carried on, shall, in the absence of conclusive evidence to the contrary, be presumptive proof of the regular use of such weight or measure or weighing or measuring device for commercial purposes and of that use by the person in charge of the building, enclosure, stand, or vehicle.

(Added 1967, No. 102, § 62, eff. April 14, 1967.)

§ 2770 Administrative penalties; license suspension

(a) In addition to other penalties provided by law, the Secretary may assess administrative penalties under 6 V.S.A. § 15 for each violation of this chapter. Each violation may be a separate and distinct offense, and, in the case of a continuing violation, each day’s continuance thereof may be deemed a separate and distinct offense.

(b) After notice and opportunity for hearing, the Secretary may suspend or revoke a license issued under this chapter for any violation of this chapter.

(Added 2019, No. 129 (Adj. Sess.), § 19.)

§ 2771 Deceptive acts or practices

In addition to other penalties provided by law, a violation of this chapter or rule adopted thereunder shall constitute an unfair or deceptive act or practice in commerce subject to the penalty provisions established in chapter 63 of this title.

(Added 1991, No. 244 (Adj. Sess.), § 2, eff. May 28, 1992.)

Chapter 74 Energy Efficiency Standards for Appliances and Equipment

§ 2791 General purpose

This chapter establishes minimum efficiency standards for certain products sold or installed in the State.

(Added 2005, No. 152 (Adj. Sess.), § 1.)

§ 2792 Findings

The General Assembly finds that:

(1) Efficiency standards for certain products sold or installed in the State assure consumers and businesses that those products meet minimum efficiency performance levels, thus saving money on utility bills.

(2) These efficiency standards save energy and thus reduce pollution and other environmental impacts associated with the production, distribution, and use of electricity, natural gas, and oil.

(3) These efficiency standards can make electricity systems more reliable by reducing the strain on the electricity grid during peak demand periods. Furthermore, improved energy efficiency can reduce or delay the need for new power plants, power transmission lines, and power distribution system upgrades.

(4) Energy efficiency standards contribute to the economy of this State by helping to balance better energy supply and demand, thus reducing pressure for higher natural gas and electricity prices. By saving consumers and businesses money on energy bills, efficiency standards help the State and local economy since energy bill savings can be spent on local goods and services.

(Added 2005, No. 152 (Adj. Sess.), § 1.)

§ 2793 Definitions

As used in this chapter:

(1) “Ballast” means a device used with an electric discharge lamp to obtain necessary circuit conditions (voltage, current, and waveform) for starting and operating the lamp.

(2) “Commissioner” means the Commissioner of Public Service.

(3) “Compensation” means money or any other valuable thing, regardless of form, received or to be received by a person for services rendered.

(4) “Electricity ratio (ER)” is the ratio of furnace electricity use to total furnace energy use. ER = (3.412EA/iE)/(1000EF + 3.412 EA/iE) where EAE (average annual auxiliary electrical consumption) and EF (average annual fuel energy consumption) are defined in 10 C.F.R. Part 430, Subpart B, Appendix N.

(5) “High-intensity discharge lamp” means a lamp in which light is produced by the passage of an electric current through a vapor or gas and in which the light-producing arc is stabilized by bulb wall temperature, and the arc tube has a bulb wall loading in excess of three watts per square centimeter.

(6) “Medium voltage dry-type distribution transformer” means a transformer that:

(A) has an input voltage of more than 600 volts but less than or equal to 34,500 volts;

(B) is air-cooled;

(D) is rated for operation at a frequency of 60 hertz.

(7) “Metal halide lamp” means a high intensity discharge lamp in which the major portion of the light is produced by radiation of metal halides and their products of dissociation, possibly in combination with metallic vapors.

(8) “Metal halide lamp fixture” means a light fixture designed to be operated with a metal halide lamp and a ballast for a metal halide lamp.

(9) “Probe-start metal halide ballast” means a ballast used to operate metal halide lamps that does not contain an ignitor and that instead starts lamps by using a third starting electrode probe in the arc tube.

(10) “Residential boiler” means a self-contained appliance that is primarily designed for space heating by means of steam or hot water and that uses only single-phase electric current in conjunction with natural gas, propane, or home heating oil and that has a heat input rate of less than 300,000 Btus per hour.

(11) “Residential furnace” means a self-contained space heater designed to supply heated air through ducts of more than 10 inches in length and that utilizes only single-phase electric current or single-phase electric current or DC current in conjunction with natural gas, propane, or home heating oil, and that:

(A) is designed to be the principal heating source for the living space of one or more residences;

(B) is not contained within the same cabinet with a central air conditioner whose rated cooling capacity is above 65,000 Btus per hour; and

(12) “Single-voltage external AC to DC power supply” means a device that:

(A) is designed to convert line voltage AC input into lower voltage DC output;

(B) is able to convert to only one DC output voltage at a time;

(D) is contained within a separate physical enclosure from the end-use product;

(E) is connected to the end-use product via a removable or hard-wired male or female electrical connection, cable, cord, or other wiring;

(F) does not have batteries or battery packs, including those that are removable, that physically attach directly to the power supply unit;

(G) does not have a battery chemistry or type selector switch and indicator light; or does not have a battery chemistry or type selector switch and a state of charge meter; and

(H) has a nameplate output power less than or equal to 250 watts.

(13) “State-regulated incandescent reflector lamp” means a lamp that is not colored or designed for rough or vibration service applications, that has an inner reflective coating on the outer bulb to direct the light, an E26 medium screw base, and a rated voltage or voltage range that lies at least partially within 115 and 130 volts, and that falls into either of the following categories:

(A) a blown PAR (BPAR), bulged reflector (BR), or elliptical reflector (ER) bulb shape, with a diameter that equals or exceeds 2.25 inches; or

(B) a reflector (R), parabolic aluminized reflector (PAR), or similar bulb shape with a diameter of 2.25 to 2.75 inches.

(14)(A) “Transformer” means a device that consists of two or more coils of insulated wire and that is designed to transfer alternating current by electromagnetic induction from one coil to another, in order to change the original voltage or current value.

(B) The term “transformer” does not include:

(i) devices with multiple voltage taps, with the highest voltage tap equaling at least 20 percent more than the lowest voltage tap; or

(ii) devices, such as those commonly known as drive transformers, rectifier transformers, auto transformers, uninterruptible power system transformers, impedance transformers, regulating transformers, sealed and nonventilating transformers, machine tool transformers, welding transformers, grounding transformers, or testing transformers, that are designed to be used in a special purpose application and are unlikely to be used in general purpose applications.

(15) “General service lamp” has the same meaning as set forth in the action published at 82 Fed. Reg. 7276, 7321-22 (January 19, 2017) and modified by the action published at 82 Fed. Reg. 7322, 7333 (January 19, 2017).

(16) With respect to air compressors, the following definitions apply:

(A) “Air compressor” means a compressor that is designed to compress air that has an inlet open to the atmosphere or other source of air and that consists of the bare compressor, also known as the compression element; one or more drivers; mechanical equipment to drive the compression element; and any ancillary equipment.

(B) “Compressor” means a machine or apparatus that converts different types of energy into the potential energy of gas pressure for displacement and compression of gaseous media to any higher-pressure values above atmospheric pressure and has a pressure ratio at full-load operating pressure greater than 1.3.

(17) “Commercial dishwasher” means a machine designed to clean and sanitize plates, pots, pans, glasses, cups, bowls, utensils, and trays by applying sprays of detergent solution, with or without blasting media granules, and a sanitizing rinse. The phrase “commercial dishwasher” does not include dishwashers intended for consumer use as defined in 10 C.F.R. § 430.2.

(18) “Commercial fryer” means an appliance, including a cooking vessel, in which oil is placed to such a depth that the cooking food is supported by displacement of the cooking fluid rather than by the bottom of the vessel. Heat is delivered to the cooking fluid by means of an immersed electric element of band-wrapped vessel or by heat transfer from gas burners either through the walls of the fryer or through tubes passing through the cooking fluid.

(19) “Commercial hot-food holding cabinet” means a heated, fully enclosed compartment with one or more solid or transparent doors designed to maintain the temperature of hot food that has been cooked using a separate appliance. The phrase “commercial hot-food holding cabinet” does not include heated glass merchandizing cabinets, drawer warmers, or cook-and-hold appliances.

(20) “Commercial steam cooker” means a device with one or more food-steaming compartments in which the energy in the steam is transferred to the food by direct contact. A commercial steam cooker may also be known as a compartment steamer.

(21) “ENERGY STAR Program” means the federal program initiated by the U.S. Environmental Protection Agency pursuant to 42 U.S.C. § 7403(g) that includes certification of energy-saving products, buildings, and tools, and includes other resources for saving energy.

(22) With respect to faucets and showerheads, the following definitions apply:

(A) “Faucet” means a lavatory faucet, kitchen faucet, metering faucet, public lavatory faucet, or replacement aerator for a lavatory, public lavatory, or kitchen faucet. As used in this subdivision (22)(A):

(i) “Metering faucet” means a fitting that, when turned on, will gradually shut itself off over a period of several seconds.

(ii) “Public lavatory faucet” means a fitting intended to be installed in nonresidential bathrooms that are exposed to walk-in traffic.

(iii) “Replacement aerator” means an aerator sold as a replacement, separate from the faucet to which it is intended to be attached.

(B) “Showerhead” means an accessory to a supply fitting for spraying water onto a bather, typically from an overhead position. The term includes a body spray and handheld shower. As used in this subdivision (22)(B):

(i) “Body spray” means a shower device for spraying water onto a bather other than from the overhead position.

(ii) “Handheld shower” means a showerhead that can be held or fixed in place for the purpose of spraying water onto a bather and that is connected to a flexible hose.

(23) “High color rendering index (CRI) fluorescent lamp” means a fluorescent lamp with a color rendering index of 87 or greater that is not a compact fluorescent lamp.

(24) “Luminaire” means a complete lighting unit consisting of a fluorescent lamp or lamps, together with parts designed to distribute the light, to position and protect such lamps, and to connect such lamps to the power supply through the ballast.

(25) With respect to portable air conditioners, the following definitions apply:

(A) “Portable air conditioner” means a portable encased assembly, other than a packaged terminal air conditioner, room air conditioner, or dehumidifier, that includes a source of refrigeration; delivers cooled, conditioned air to an enclosed space; and is powered by single-phase electric current. The assembly may include additional means for air circulation and heating and may be a single-duct or a dual-duct portable air conditioner.

(B) “Single-duct portable air conditioner” means a portable air conditioner that draws all of the condenser inlet air from the conditioned space without the means of a duct and discharges the condenser outlet air outside the conditioned space through a single duct attached to an adjustable window bracket.

(C) “Dual-duct portable air conditioner” means a portable air conditioner that draws some or all of the condenser inlet air from outside the conditioned space through a duct attached to an adjustable window bracket, may draw additional condenser inlet air from the conditioned space, and discharges the condenser outlet air outside the conditioned space by means of a separate duct attached to an adjustable window bracket.

(26) “Portable electric spa” means a factory-built electric spa or hot tub, which may or may not include any combination of integral controls, water heating, or water circulating equipment.

(27) “Residential ventilating fan” means a ceiling, wall-mounted, or remotely mounted in-line fan designed to be used in a bathroom or utility room whose purpose is to move air from inside the building to the outdoors.

(28) With respect to spray sprinkler bodies, the following definitions apply:

(A) “Pressure regulator” means a device that maintains constant operating pressure immediately downstream from the device, given higher pressure upstream.

(B) “Spray sprinkler body” means the exterior case or shell of a sprinkler incorporating a means of connection to the piping system designed to convey water to a nozzle or orifice.

(29) “T12 fluorescent lamp” means a tubular fluorescent lamp to which one of the following applies:

(A) The lamp has a nominal rating of 34 watts, is 48 inches in length and one and one-half inches in diameter, and conforms to ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-1006-1). Such a lamp is often referred to as an “F34T12 lamp” or an “F40T12/ES lamp.”

(B) The lamp has a nominal rating of 40 watts, is 48 inches in length and one and one-half inches in diameter, and conforms to ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-1010-1). Such a lamp is often referred to as an “F40T12 lamp.”

(C) The lamp has a nominal rating of 60 watts, is 96 inches in length and one and one-half inches in diameter, and conforms to ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-3006-1). Such a lamp is often referred to as an “F96T12/ES lamp.”

(D) The lamp has a nominal rating of 75 watts, is 96 inches in length and one and one-half inches in diameter, and conforms to ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-3007-1). Such a lamp is often referred to as an “F96T12 lamp.”

(E) The lamp has a nominal rating of 95 watts, is 96 inches in length and one and one-half inches in diameter, and conforms to ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-1017-1). Such a lamp is often referred to as an “F96T12HO/ES lamp.”

(F) The lamp has a nominal rating of 110 watts, is 96 inches in length and one and one-half inches in diameter, and conforms to ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-1019-1). Such a lamp is often referred to as an “F96T12HO lamp.”

(30) “Uninterruptible power supply” means a battery charger consisting of a combination of convertors, switches, and energy storage devices, such as batteries, constituting a power system that maintains continuity of load power in case of input power failure.

(31) With respect to urinals, the following definitions apply:

(A) “Plumbing fixture” means an exchangeable device that connects to a plumbing system to deliver and drain away water and waste.

(B) “Trough-type urinal” means a urinal designed for simultaneous use by two or more persons.

(C) “Urinal” means a plumbing fixture that receives only liquid body waste and conveys the waste through a trap into a drainage system.

(32) With respect to water coolers, the following definitions apply:

(A) “Cold-only unit” means a water cooler that dispenses cold water only.

(B) “Cook and cold unit” means a water cooler that dispenses both cold and room-temperature water.

(C) “Hot and cold unit” means a water cooler that dispenses both hot and cold water. A hot and cold unit also may dispense room-temperature water.

(D) “On demand” means that a water cooler heats water as it is requested, which typically takes a few minutes to deliver.

(E) “Storage-type” means that a water cooler stores thermally conditioned water in a tank and the conditioned water is available instantaneously. Storage-type water coolers include point-of-use, dry storage compartment, and bottled water coolers.

(F) “Water cooler” means a freestanding device that consumes energy to cool or heat potable water, or both.

(Added 2005, No. 152 (Adj. Sess.), § 1; amended 2017, No. 42, § 2, eff. May 22, 2017; 2017, No. 139 (Adj. Sess.), § 2.)

§ 2794 Scope

(a) The provisions of this chapter apply to the following types of new products sold, offered for sale, or installed in the State:

(1) Medium voltage dry-type distribution transformers.

(2) Metal halide lamp fixtures.

(3) Residential furnaces and residential boilers.

(4) Single-voltage external AC to DC power supplies.

(5) State-regulated incandescent reflector lamps.

(6) General service lamps.

(7) Air compressors.

(8) Commercial dishwashers.

(9) Commercial fryers.

(10) Commercial hot-food holding cabinets.

(11) Commercial steam cookers.

(12) Computers and computer monitors.

(13) Faucets.

(14) High CRI fluorescent lamps.

(15) Portable air conditioners.

(16) Portable electric spas.

(17) Residential ventilating fans.

(18) Showerheads.

(19) Spray sprinkler bodies.

(20) Uninterruptible power supplies.

(21) Urinals.

(22) Water coolers.

(23) Each other product for which the Commissioner is required to adopt an efficiency or water conservation standard by rule pursuant to section 2795 of this title.

(24) Any other product that may be designated by the Commissioner in accordance with section 2797 of this title.

(b) The provisions of this chapter do not apply to:

(1) New products manufactured in the State and sold outside the State and the equipment used in manufacturing those products.

(2) New products manufactured outside the State and sold at wholesale inside the State for final retail sale and installation outside the State.

(3) Products installed in mobile manufactured homes at the time of construction.

(4) Products designed expressly for installation and use in recreational vehicles.

(Added 2005, No. 152 (Adj. Sess.), § 1; amended 2017, No. 42, § 3, eff. May 22, 2017; 2017, No. 139 (Adj. Sess.), § 3.)

§ 2795 Efficiency and water conservation standards

(a) The Commissioner shall adopt rules in accordance with the provisions of 3 V.S.A. chapter 25 establishing minimum efficiency standards for the types of new products set forth in section 2794 of this title. The rules shall provide for the following minimum efficiency standards for products sold or installed in this State:

(1) Medium voltage dry-type distribution transformers shall at a minimum meet the efficiency requirements set forth for such transformers in 10 C.F.R. § 431.196, as those requirements may be amended from time to time.

(2) Metal halide lamp fixtures designed to be operated with lamps rated greater than or equal to 150 watts but less than or equal to 500 watts shall not contain a probe-start metal halide ballast.

(3)(A) Residential furnaces and residential boilers shall meet or exceed the following Annual Fuel Utilization Efficiency (AFUE) and electricity ratio values:

| Product Type | Maximum | Maximum | | --- | --- | --- | | | AFUE | electricity | | | | ratio | | Natural gas- and propane- fired furnaces | 90% | 2.0% | | Oil-fired furnaces ≥ 94,000 Btus/hour in capacity | 83% | 2.0% | | Oil-fired furnaces < 94,000 Btus/hour in capacity | 83% | 2.3% | | Natural gas-, oil-, and propane-fired hot water residential boilers | 84% | Not applicable | | Natural gas-, oil-, and propane-fired steam residential boilers | 82% | Not applicable |

(B) AFUE shall be measured in accordance with the federal test method for measuring the energy consumption of furnaces and boilers contained in Appendix N to subpart B of part 430, Title 10, Code of Federal Regulations.

(C) The Commissioner may adopt rules to exempt compliance with these residential furnace or residential boiler AFUE standards at any building, site, or location where complying with these standards would be in conflict with any local zoning ordinance, building or plumbing code, or other rule regarding installation and venting of residential boilers or residential furnaces.

(4)(A) Single-voltage external AC to DC power supplies shall meet the energy efficiency requirements of the following table:

| Nameplate output power | Minimum efficiency in Active Mode | | --- | --- | | 0 to < 1 watt | 0.49* Nameplate Output | | ≥ 1 watt and ≤ 49 watts | 0.09*Ln(Nameplate Output power) + 0.49 | | > 49 watts | 0.84 | | | Maximum Energy Consumption in No-Load Mode | | 0 to < 10 watts | 0.5 watts | | ≥ 10 watts and ≤ 250 watts | 0.75 watts |

Where Ln (Nameplate Output) = Natural logarithm of the nameplate output expressed in watts.

(B) This standard applies to single voltage AC to DC power supplies that are sold individually and to those that are sold as a component of or in conjunction with another product. Single voltage AC to DC power supplies that are made available by a product manufacturer as accessories, service parts, or spare parts for its products manufactured prior to January 1, 2008 shall be exempt from the requirements of this standard.

(C) For purposes of this subdivision (4), the efficiency of single-voltage external AC to DC power supplies shall be measured in accordance with the test methodology specified by the ENERGY STAR Program, “Test Method for Calculating the Energy Efficiency of Single-Voltage External AC-DC and AC-AC Power Supplies (August 11, 2004).”

(5)(A) State-regulated incandescent reflector lamps shall meet the minimum average lamp efficacy requirements for federally regulated incandescent reflector lamps contained in 42 U.S.C. § 6295(i)(1)(A).

(B) The following types of incandescent reflector lamps are exempt from these requirements:

(i) lamps rated at 50 watts or less of the following types: BR30, ER30, BR40, and ER40;

(ii) lamps rated at 65 watts of the following types: BR30, BR40, and ER40; and

(iii) R20 lamps of 45 watts or less.

(6) In the rules, the Commissioner shall adopt minimum efficiency and water conservation standards for each product that is subject to a standard under 10 C.F.R. §§ 430 and 431 as those provisions existed on January 19, 2017. The minimum standard and the testing protocol for each product shall be the same as adopted in those sections of the Code of Federal Regulations, except that for faucets, showerheads, and urinals, the minimum standard and testing protocol shall be as otherwise set forth in this section.

(7) In the rules, the Commissioner shall adopt a minimum efficacy standard for general service lamps of 45 lumens per watt, when tested in accordance with 10 C.F.R. § 430.23(gg) as that provision existed on January 19, 2017.

(8) In this subdivision (8), “final rule” means the document setting forth a final action by the U.S. Department of Energy (DOE) with respect to a final rule for “Energy Conservation Standards for Air Compressors,” docket no. EERE-2013-BT-STD-0040, approved by DOE on December 5, 2016. Air compressors that meet the 12 criteria to be codified under 10 C.F.R. § 431.345(a) and set forth on pages 350 to 351 of the final rule shall meet the requirements contained in Table 1 on page 352 of the final rule using the instructions to be codified under 10 C.F.R. § 431.345(b) and set forth on page 353 of the final rule. Compliance with these requirements shall be measured in accordance with 10 C.F.R. Part 431, Subpart T, Appendix A, entitled “Uniform Test Method for Certain Air Compressors,” as in effect on July 3, 2017.

(9) Commercial dishwashers included in the scope of the “ENERGY STAR Program Requirements Product Specification for Commercial Dishwashers,” Version 2.0, shall meet the qualification criteria of that specification.

(10) Commercial fryers included in the scope of the “ENERGY STAR Program Requirements Product Specification for Commercial Fryers,” Version 2.0, shall meet the qualification criteria of that specification.

(11) Commercial hot-food holding cabinets shall have a maximum idle energy rate of 40 watts per cubic foot of interior volume, as determined by the “idle energy rate-dry test” in ASTM F2140-11, “Standard Test Method for Performance of Hot-Food Holding Cabinets,” ASTM International (2011). Interior volume shall be measured as prescribed in the “ENERGY STAR Program Requirements Product Specification for Commercial Hot-Food Holding Cabinets,” Version 2.0.

(12) Commercial steam cookers shall meet the requirements of the “ENERGY STAR Program Requirements Product Specification for Commercial Steam Cookers,” Version 1.2.

(13) Computers and computer monitors shall meet the requirements of 20 California Code of Regulations (C.C.R.) § 1605.3(v) and compliance with these requirements shall be measured in accordance with test methods prescribed in 20 C.C.R. § 1604(v).

(A) For the purposes of this subdivision (13), terms used in the referenced portions of the C.C.R. shall be as defined in 20 C.C.R. § 1602.

(B) The rules shall define “computer” and “computer monitor” to have the same meaning as set forth in 20 C.C.R. § 1602(v).

(C) The referenced portions of the C.C.R. shall be those adopted on or before July 1, 2018. However, the Commissioner shall have authority to amend the rules so that the definitions of “computer” and “computer monitor” and the minimum efficiency standards for computers and computer monitors conform to subsequently adopted modifications to the referenced sections of the C.C.R.

(14) Faucets, except for metering faucets, and showerheads shall meet the standards set forth in this subdivision (14) when tested in accordance with 10 C.F.R. Part 430, Subpart B, Appendix S, entitled “Uniform Test Method for Measuring the Water Consumption of Faucets and Showerheads,” as in effect on January 3, 2017.

(A) Lavatory faucets and replacement aerators shall not exceed a maximum flow rate of 1.5 gallons per minute (gpm) at 60 pounds per square inch (psi).

(B) Residential kitchen faucets and replacement aerators shall not exceed a maximum flow rate of 1.8 gpm at 60 psi, with optional temporary flow of 2.2 gpm, provided they default to a maximum flow rate of 1.8 gpm at 60 psi after each use.

(D) Showerheads shall not exceed a maximum flow rate of 2.0 gpm at 80 psi.

(15) High CRI fluorescent lamps shall meet the minimum efficacy requirements contained in 10 C.F.R. § 430.32(n)(4) as that subdivision existed on January 3, 2017. Compliance with requirements shall be measured in accordance with 10 C.F.R. Part 430, Subpart B, Appendix R, entitled “Uniform Test Method for Measuring Average Lamp Efficacy (LE), Color Rendering Index (CRI), and Correlated Color Temperature (CCT) of Electric Lamps,” as that appendix existed on January 3, 2017.

(16) Urinals, other than trough-type urinals and urinals designed and marketed exclusively for use at prisons or mental health facilities, shall have a maximum flush volume of 0.5 gallons per flush when tested in accordance with 10 C.F.R. Part 430, Subpart B, Appendix T, entitled “Uniform Test Method for Measuring the Water Consumption of Water Closets and Urinals,” as in effect on January 3, 2017 and shall pass the waste extraction test for water closets set forth in Sec. 7.10 of the American Society of Mechanical Engineers (ASME) standard A112.19.2-2013/CSA B.45.1, as that standard exists on July 1, 2018.

(17) Portable air conditioners shall have a Combined Energy Efficiency Ratio (CEER), that is greater than or equal to: 1.04 x [SACC/(3.7177 x SACC0.638/f4)].

(A) In this subdivision (17), “SACC” means seasonally adjusted cooling capacity expressed in British thermal units per hour.

(B) The CEER shall be measured in accordance with 10 C.F.R. Part 430, Subpart B, Appendix CC, entitled “Uniform Test Method for Measuring the Energy Consumption of Portable Air Conditioners,” as in effect on January 3, 2017.

(18) Portable electric spas shall meet the requirements of the American National Standard for Portable Electric Spa Energy Efficiency, ANSI/APSP/ICC-14 2014, as that standard exists on July 1, 2018.

(19) Residential ventilating fans shall meet the qualification criteria of the “ENERGY STAR Program Requirements Product Specification for Residential Ventilating Fans,” Version 3.2.

(20) Spray sprinkler bodies shall include an integral pressure regulator and shall meet the water efficiency and performance criteria and other requirements of the Environmental Protection Agency’s “WaterSense Specification for Spray Sprinkler Bodies,” Version 1.0. However, this subdivision (20) shall not apply to spray sprinkler bodies that are specifically excluded from the scope of that specification.

(21) In this subdivision (21), “final rule” means the document setting forth a final action by DOE with respect to a final rule for “Energy Conservation Standards for Uninterruptible Power Supplies,” docket no. EERE-2016-BT-STD-0022, approved by DOE on December 28, 2016. Uninterruptible power supplies that use a National Electrical Manufacturer Association (NEMA) 1-15P or 5-15P input plug and have an alternating current (AC) output shall have an average load-adjusted efficiency that meets or exceed the values shown to be codified under 10 C.F.R. § 430.32(z)(3) and set forth on pages 193-194 of the final rule. Compliance with these requirements shall be measured in accordance with 10 C.F.R. Part 430, Subpart B, Appendix Y, entitled “Uniform Test Method for Measuring the Energy Consumption of Battery Chargers,” as in effect on January 11, 2017.

(22) Water coolers included in the scope of the “ENERGY STAR Program Requirements Product Specification for Water Coolers,” Version 2.0, shall have “on mode with no water draw” energy consumption less than or equal to the following values, measured in accordance with the test requirements of that specification:

(A) 0.16 kilowatt-hours (kWh) per day for cold-only units and cook and cold units;

(B) 0.87 kWh per day for storage type hot and cold units; and

(b) When a minimum efficiency standard as described in subsection (a) of this section sets forth requirements that change over time, the rules shall provide for compliance with the changed requirements as they come into effect.

(c) When a subdivision within subdivisions (a)(8) through (a)(22) of this section requires compliance with an efficiency standard or testing protocol contained in a document issued by an agency of the United States, another state, or a nationally or internationally recognized organization, the rules of the Commissioner may incorporate the specified standard or protocol by reference pursuant to 3 V.S.A. § 838 rather than setting forth its language.

(d) With respect to computers and computer monitors subject to subdivision (a)(13) of this section, the Commissioner shall have authority to adopt official interpretations of the applicable efficiency standards published by the staff of the California Energy Commission (CEC). The rules shall state the process for such adoption and the manner in which the Commissioner will make the adopted interpretations publicly available.

(Added 2005, No. 152 (Adj. Sess.), § 1; amended 2009, No. 159 (Adj. Sess.), § 14, eff. June 4, 2010; 2017, No. 42, § 4, eff. May 22, 2017; 2017, No. 139 (Adj. Sess.), § 4.)

§ 2796 Implementation

(a) No new medium voltage dry-type distribution transformer, State-regulated incandescent reflector lamp, or single-voltage external AC to DC power supply manufactured on or after January 1, 2008 may be sold or offered for sale in the State unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the rules adopted pursuant to section 2795 of this title.

(b) On or after January 1, 2009, no new metal halide lamp fixture may be sold or offered for sale in the State unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the rules adopted pursuant to section 2795 of this title.

(c) No later than six months after the date of enactment of this chapter, the Commissioner, in consultation with the Attorney General, shall determine if implementation of State standards for residential furnaces and residential boilers requires a waiver from federal preemption. If the Commissioner determines that a waiver from federal preemption is not needed, those State standards shall go into effect on June 1, 2008, or if this determination is made after June 1, 2007, those standards shall go into effect one year after the date of this determination. If the Commissioner determines that a waiver from federal preemption is required, the Commissioner shall apply for that waiver within one year of that determination and upon approval of that waiver application, the applicable standards shall go into effect at the earliest date permitted by federal law.

(d)(1) On or after July 1, 2019, no new luminaire that is designed and marketed to operate with T12 fluorescent lamps may be sold or offered for sale in the State. This prohibition shall not apply to a luminaire that the seller purchased on or before June 30, 2019.

(2) On or after July 1, 2020, no new air compressor, commercial dishwasher, commercial fryer, commercial hot-food holding cabinet, commercial steam cooker, computer or computer monitor, high CRI fluorescent lamp, portable electric spa, residential ventilating fan, spray sprinkler body, uninterruptible power supply, or water cooler may be sold or offered for sale, lease, or rent in the State unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the rules adopted pursuant to section 2795 of this title.

(3) On or after July 1, 2021, no new faucet, showerhead, or urinal may be sold or offered for sale, lease, or rent in the State unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the rules adopted pursuant to section 2795 of this title.

(4) This subdivision governs the date after which no new portable air conditioner may be sold or offered for sale, lease, or rent in the State unless the efficiency of the new product meets or exceeds the efficiency standards set forth in the rules adopted pursuant to section 2795 of this title (the compliance date).

(A) The compliance date shall be on or after February 1, 2022, unless subdivision (B) of this subdivision (4) applies.

(B) If, prior to January 1, 2019, the U.S. Department of Energy (DOE) has published a final rule in the Federal Register establishing efficiency standards for portable air conditioners and the rule has not been repealed, voided, or retracted, the compliance date shall be on or after the date as of which portable air conditioners are required to comply with the DOE rule.

(5) The prohibitions set forth in subdivisions (2) through (4) of this subsection shall not apply to a product that the seller or lessor purchased:

(A) in the case of a product listed in subdivision (2) of this subsection, on or before June 30, 2020;

(B) in the case of a faucet, showerhead, or urinal, on or before June 30, 2021; and

(C) in the case of a portable air conditioner, before the first date on which compliance is required under subdivision (4) of this subsection.

(e) Owners and operators of commercial and industrial facilities shall be allowed to utilize appliances and equipment that do not meet the requirements of section 2795 of this title for the repair or replacement of existing equipment, provided that the equipment being repaired or replaced was acquired before the implementation date determined according to the provisions of this section. At the discretion of the owners and operators, these appliances and equipment may be used at any time before or after the effective date of those requirements.

(f)(1) When federal preemption under 42 U.S.C. § 6297 applies to a standard adopted pursuant to this chapter for a product, the standard shall become enforceable on the occurrence of the earliest of the following:

(A) The federal energy or water conservation standard for the product under 42 U.S.C. chapter 77 is withdrawn, repealed, or otherwise voided. However, this subdivision (A) shall not apply to any federal energy or water conservation standard set aside by a court of competent jurisdiction upon the petition of a person who will be adversely affected, as provided in 42 U.S.C. § 6306(b).

(B) A waiver of federal preemption is issued pursuant to 42 U.S.C. § 6297.

(2) The federal standard for general service lamps shall be considered to be withdrawn, repealed, or otherwise voided within the meaning of this subsection if it does not come into effect on January 20, 2020 pursuant to the actions published at 82 Fed. Reg. 7276 and 7333 (January 19, 2017).

(3) When a standard adopted pursuant to this chapter becomes enforceable under this subsection, a person shall not sell or offer for sale in the State a new product subject to the standard unless the efficiency or water conservation of the new product meets or exceeds the requirements set forth in the standard.

(Added 2005, No. 152 (Adj. Sess.), § 1; amended 2017, No. 42, § 5, eff. May 22, 2017; 2017, No. 139 (Adj. Sess.), § 5.)

§ 2797 Revised standards

The Commissioner may adopt rules, in accordance with the provisions of 3 V.S.A. chapter 25, to revise efficiency standards for the products listed in section 2794 of this title, in order to make the standards conform to standards in effect in other states, where to do so is in the interests of the electrical energy consumers of the State. In considering increased standards, the Commissioner shall set efficiency standards upon a determination that increased efficiency standards would serve to promote energy conservation in the State and would be cost-effective for consumers who purchase and use those products. No increased efficiency standards shall become effective within one year following the adoption of any amended rules establishing those increased efficiency standards. The Commissioner may apply for a waiver of federal preemption in accordance with federal procedures (42 U.S.C. § 6297(d)) for State efficiency standards for any product regulated by the federal government.

(Added 2005, No. 152 (Adj. Sess.), § 1.)

§ 2798 Testing, certification, labeling, and enforcement

(a) The Commissioner shall adopt test protocols for determining the energy efficiency of the new products covered by section 2794 of this title if those protocols are not provided for in section 2795 of this title or in the Residential Building Energy Standards adopted under 30 V.S.A. § 51. The Commissioner shall require U.S. Department of Energy-approved test methods, or in the absence of those test methods, other appropriate nationally recognized test methods. The manufacturers of these products shall cause samples of their products to be tested in accordance with the test protocols adopted pursuant to this chapter or those specified in the Residential Building Energy Standards. The Commissioner may adopt updated test methods when new versions of test protocols become available.

(b) Manufacturers of new products covered by section 2794 of this title, except for single voltage external AC to DC power supplies, shall certify to the Commissioner that these products are in compliance with the provisions of this chapter. These certifications shall be based on test results. The Commissioner shall adopt rules governing the certification of those products and shall coordinate with the certification programs of other states with similar standards.

(c) Manufacturers of new products covered by section 2794 of this title shall identify each product offered for sale or installation in the State as being in compliance with the provisions of this chapter by means of a mark, label, or tag on the product and packaging at the time of sale or installation. The Commissioner shall adopt rules governing the identification of these products and packaging, which shall be coordinated to the greatest practical extent with the labeling programs of other states and federal agencies with equivalent efficiency standards. The Commissioner shall allow the use of existing marks, labels, or tags which connote compliance with the efficiency requirements of this chapter.

(d) The Commissioner may test products covered by section 2794 of this title. If any product so tested is found not to be in compliance with the minimum efficiency standards established under section 2795 of this title, the Commissioner shall:

(1) charge the manufacturer of that product for the cost of product purchase and testing; and

(2) make available to the public information on products found not to be in compliance with the standards.

(e) With prior notice and at reasonable and convenient hours, the Commissioner may cause periodic inspections to be made of distributors or retailers of new products covered by section 2794 of this title in order to determine compliance with the provisions of this chapter.

(f) The Commissioner is granted the authority to adopt further rules as necessary to ensure the proper implementation of the provisions of this chapter.

(g) Any manufacturer, or distributor, or any person who installs a product covered by this chapter for compensation, who violates any provision of this chapter shall be subject to a civil penalty of not more than $250.00. Each violation shall constitute a separate offense, and each day that such violation continues shall constitute a separate offense. Penalties assessed under this subsection are in addition to costs assessed under subsection (d) of this section.

(Added 2005, No. 152 (Adj. Sess.), § 1.)

Chapter 75 Acids and Alkalis

§ 2821 Definitions

In this chapter, unless the context or subject matter otherwise requires:

(1) The term “dangerous caustic or corrosive substance” means each and all of the acids, alkalis, and substances named below:

(A) Hydrochloric acid and any preparation containing free or chemically unneutralized hydrochloric acid (HCl) in a concentration of 10 percent or more;

(B) Sulphuric acid and any preparation containing free or chemically unneutralized sulphuric acid (H2SO4) in a concentration of 10 percent or more;

(C) Nitric acid or any preparation containing free or chemically unneutralized nitric acid (HNO3) in a concentration of five percent or more;

(D) Carbolic acid (C6H5OH), otherwise known as phenol, and any preparation containing carbolic acid in a concentration of five percent or more;

(E) Oxalic acid and any preparation containing free or chemically unneutralized oxalic acid (H2C2O4) in a concentration of 10 percent or more;

(F) Any salt of oxalic acid and any preparation containing any such salt in a concentration of 10 percent or more;

(G) Acetic acid or any preparation containing free or chemically unneutralized acetic acid (HC2H3O2) in a concentration of 20 percent or more;

(H) Hypochlorous acid, either free or combined, and any preparation containing the same in a concentration so as to yield ten percent or more by weight of available chlorine, excluding calx chlorinata, bleaching powder, and chloride of lime;

(I) Potassium hydroxide and any preparation containing free or chemically unneutralized potassium hydroxide (KOH), including caustic potash and Vienna paste, in a concentration of 10 percent or more;

(J) Sodium hydroxide and any preparation containing free or chemically unneutralized sodium hydroxide (NaOH), including caustic soda and lye, in a concentration of 10 percent or more;

(K) Silver nitrate, sometimes known as lunar caustic, and any preparation containing silver nitrate (AgNO3) in a concentration of five percent or more; and

(L) Ammonia water and any preparation yielding free or chemically uncombined ammonia (NH3), including ammonium hydroxide and “hartshorn,” in a concentration of five percent or more.

(2) The term “misbranded parcel, package, or container” means a retail parcel, package, or container of any dangerous caustic or corrosive substance for household use, not bearing a conspicuous, easily legible label or sticker, containing:

(A) the name of the article;

(B) the name and place of business of the manufacturer, packer, seller, or distributor;

(C) the word “POISON,” running parallel with the main body of reading matter on such label or sticker, on a clear, plain background of a distinctly contrasting color, in uncondensed gothic capital letters, the letters to be not less than 24 point size, unless there is on such label or sticker no other type so large, in which event the type shall be not smaller than the largest type on the label or sticker; and

(D) directions for treatment in case of accidental personal injury by the dangerous caustic or corrosive substance.

§ 2822 Sale of misbranded products; penalties

(a) A person shall not sell, barter, exchange, receive, hold, pack, display, or offer for sale, barter, or exchange any dangerous caustic or corrosive substance in a misbranded parcel, package, or container when such parcel, package or container is designed for household use.

(b) A person who violates a provision of this chapter shall be fined not more than $200.00 or be imprisoned not more than 90 days, or both.

(c) A State’s Attorney who is satisfied from evidence produced before him or her that a provision of this chapter has been violated shall forthwith cause prosecution to be made for such violation.

§ 2823 Enforcement by Commissioner of Health; registration of brands and labels

The Commissioner of Health shall enforce the provisions of this chapter, and may approve and register such brands and labels intended for use under the provisions of this chapter as may be submitted to the Commissioner for that purpose and as may in the Commissioner’s judgment conform to the requirements of this chapter. However, in any prosecution under this chapter, the fact that any brand or label involved in such prosecution has not been submitted to the Commissioner of Health for approval, or if submitted, has not been approved by the Commissioner, shall be immaterial.

(Amended 1959, No. 329 (Adj. Sess.), § 27, eff. March 1, 1961; 2023, No. 53, § 12, eff. June 8, 2023.)

Chapter 76 Motor Vehicle Parts and Accessories

Subchapter 1 Hydraulic Brake Fluids

§ 2831 Hydraulic brake fluids

No person may distribute or provide any fluid for use in the hydraulic brake system of a motor vehicle unless it meets the minimum standards established by the Commissioner of Motor Vehicles and unless the container bears a statement of its SAE classifications. The Commissioner shall adopt standards for quality of brake fluids based on the classification of the society of automotive engineers to ensure safe operation of motor vehicles.

(Added 1963, No. 42, eff. Jan. 1, 1964.)

Subchapter 2 Sale of Engine Coolants and Antifreeze

§ 2841 Aversive agent required

As of January 1, 2011, a person shall not sell or offer to sell in this State any engine coolant or antifreeze that contains more than 10 percent ethylene glycol unless the engine coolant or antifreeze includes denatonium benzoate at a minimum of 30 parts per million and a maximum of 50 parts per million as an aversive agent within the product so as to render it unpalatable, except that this subchapter shall not apply to product inventory purchased by retailers prior to January 1, 2011.

(Added 2009, No. 15, § 2, eff. May 12, 2009.)

§ 2842 Records of manufacturer and packager

Any manufacturer or packager of engine coolant or antifreeze subject to this subchapter shall maintain a record of the trade name, the scientific name, and the active ingredients of the aversive agent used pursuant to this subchapter. Information and documentation maintained pursuant to this subchapter must be furnished to any member of the public upon request.

(Added 2009, No. 15, § 2, eff. May 12, 2009.)

§ 2843 Limitation of liability

A manufacturer, distributor, recycler, or seller of any engine coolant or antifreeze that contains denatonium benzoate as required under this subchapter is not liable to any person for any personal injury, death, property damage, damage to the environment or natural resources, or economic loss that results from the inclusion of denatonium benzoate if included in concentrations mandated by this subchapter. This section does not provide immunity to any person to the extent that the cause of liability is unrelated to the inclusion of denatonium benzoate in any engine coolant or antifreeze.

(Added 2009, No. 15, § 2, eff. May 12, 2009.)

§ 2844 Exceptions

This subchapter does not apply to:

(1) the sale of a motor vehicle that contains engine coolant or antifreeze; or

(2) antifreeze or engine coolant for use in a manufacturing process, provided that the manufacturer complies with occupational safety and health standards for the use of the antifreeze or engine coolant and complies with the Agency of Natural Resources for the disposal of antifreeze or engine coolant containing ethylene glycol.

(Added 2009, No. 15, § 2, eff. May 12, 2009.)

Chapter 77 Smoke Alarms and Carbon Monoxide Alarms

§ 2881 Definitions

As used in this chapter:

(1) “Single-family dwelling” means any building or structure in which a family, families, or households reside that contains sleeping facilities and is not otherwise classified as a “public building” as defined in 20 V.S.A. § 2730(a) or as a “condominium” or “multiple unit dwelling” as defined in 20 V.S.A. § 2729(d).

(2) “Smoke alarm” means a device that detects visible or invisible particles of combustion and sounds a warning alarm, is operated from a power supply within the unit or wired to it from an outside source, and is approved or listed for the purpose by Underwriters Laboratory or by another nationally recognized independent testing laboratory.

(3) “Carbon monoxide alarm” means a device with an assembly that incorporates a sensor control component and an alarm notification that detects elevations in carbon monoxide levels and sounds a warning alarm, is operated from a power supply within the unit or wired to it from an outside source, and is approved or listed for the purpose by Underwriters Laboratory or by another nationally recognized independent testing laboratory.

(Added 1993, No. 86, § 1; amended 2005, No. 19, § 1, eff. July 1, 2005; 2025, No. 69, § 23, eff. July 1, 2025.)

§ 2882 Installation

(a) A person who constructs a single-family dwelling shall install photoelectric-type or UL 217 compliant smoke alarms in the vicinity of any bedrooms and on each level of the dwelling, and one or more carbon monoxide alarms in the vicinity of any bedrooms in the dwelling in accordance with the manufacturer’s instructions. In a dwelling provided with electrical power, alarms shall be powered by the electrical service in the building and by battery.

(b) Any single-family dwelling when transferred by sale or exchange shall contain photoelectric-type or UL 217 compliant smoke alarms in the vicinity of any bedrooms and on each level of the dwelling installed in accordance with the manufacturer’s instructions and one or more carbon monoxide alarms installed in accordance with the manufacturer’s instructions. A single-family dwelling constructed before January 1, 1994 may contain smoke alarms powered by the electrical service in the building or by battery, or by a combination of both. In a single-family dwelling newly constructed after January 1, 1994 that is provided with electrical power, smoke alarms shall be powered by the electrical service in the building and by battery. In a single-family dwelling newly constructed after July 1, 2005 that is provided with electrical power, carbon monoxide alarms shall be powered by the electrical service in the building and by battery.

(c) Nothing in this section shall require an owner or occupant of a single-family dwelling to maintain or use a smoke alarm or a carbon monoxide alarm after installation.

(Added 1993, No. 86 § 1; amended 2005, No. 19, § 1, eff. July 1, 2005; 2007, No. 180 (Adj. Sess.), § 2, eff. May 29, 2008; 2025, No. 69, § 23, eff. July 1, 2025.)

§ 2883 Requirements for transfer of dwelling

(a) The seller of a single-family dwelling, including one constructed for first occupancy, whether the transfer is by sale or exchange, shall certify to the buyer at the closing of the transaction that the dwelling is provided with photoelectric-type or UL 217 compliant smoke alarms and carbon monoxide alarms in accordance with this chapter. This certification shall be signed and dated by the seller.

(b) If the buyer notifies the seller within 10 days by certified mail from the date of conveyance of the dwelling that the dwelling lacks any photoelectric-type or UL 217 compliant smoke alarms, or any carbon monoxide alarms, or that any alarm is not operable, the seller shall comply with this chapter within 10 days after notification.

(c) Violation of this section or of the installation requirements of section 2882 of this title shall not create a defect in title.

(Added 1993, No. 86 § 1; amended 2005, No. 19, § 1, eff. July 1, 2005; 2007, No. 180 (Adj. Sess.), § 3, eff. May 29, 2008; 2025, No. 69, § 23, eff. July 1, 2025.)

Chapter 79 Upholstered Furniture and Bedding

§ 2941 Used materials prohibited

(a) A person shall not manufacture for purposes of sale, sell, or offer or expose for sale, or have in possession with intent to sell any article of bedding or article of upholstered furniture the filling of which shall have been previously used for like purpose in other bedding or upholstered furniture. Possession by a manufacturer of or dealer in bedding or upholstered furniture of any article of bedding or article of upholstered furniture the filling of which shall have been previously used for like purpose in other bedding or upholstered furniture shall be prima facie evidence that such article is being manufactured, remade, or renovated or is offered for sale in violation of this chapter.

(b) A person shall not use in the manufacture of any article of bedding or article of upholstered furniture for purposes of sale, or sell, or offer or expose for sale, or have in his or her possession for the purpose of such use or for sale or for use in the remaking or renovating of any such article, any material that has previously been used in or about a hospital, or on or about the person of anyone having an infectious or contagious disease, nor shall any person sell, or offer or expose for sale, any article containing materials that have previously been so used.

§ 2942 Tagging of bedding and furniture

A person shall not manufacture for purposes of sale, sell, or offer or expose for sale, or have in possession with intent to sell any article of bedding or article of upholstered furniture unless there is plainly marked upon each such article or upon a tag sewed on the article, or otherwise securely attached to the article, a statement in the English language, containing no misleading terms or descriptions of the kind of material used for filling in the manufacture of such article, the name of the manufacturer or vendor, and a statement that such article contains all new material, and unless, if any such article is enclosed in a bale, box, crate, or other receptacle, there shall be plainly marked upon such receptacle, or upon a tag securely attached to the receptacle, a statement that the contents of the package are marked as required in this section. Possession of any article of bedding or article of upholstered furniture not marked as provided in this section by any person engaged in the business of manufacturing, selling, or offering for sale any such article shall be prima facie evidence that such article is being manufactured or is offered or exposed for sale in violation of the provisions of this section. The tag required by this section shall be at least three inches by four inches in dimensions and made of cloth or with a cloth back, or, in the case of articles of upholstered furniture, of paper or cloth, and shall be permanently pasted or attached to each such article.

(Amended 2021, No. 20, § 29.)

§ 2943 Penalties

(a) A person who violates a provision of sections 2941 and 2942 of this title, shall be imprisoned not more than six months or fined not more than $500.00, or both.

(b) A person, except a purchaser at retail, who removes or effaces any marking upon any article or receptacle or any tag or label attached thereto, as provided in section 2942 of this title, shall be fined not more than $50.00.

Chapter 80 Flame Retardants

§ 2971 Repealed

[Repealed]

2013, No. 85, § 1.

§ 2972 Definitions

As used in this chapter:

(1) “Article” means an object that during production is given a special shape, surface, or design that determines its function to a greater degree than its chemical composition.

(2) “Brominated flame retardant” means any chemical containing the element bromine that is added to plastic, foam, or textile to inhibit flame formation.

(3) “Children’s product” means a consumer product:

(A) marketed for use by children under 12 years of age; or

(B) the substantial use of which by a child under 12 years of age is reasonably foreseeable.

(4) “Commissioner” means the Commissioner of Health.

(5) “Congener” means a specific PBDE molecule.

(6) “DecaBDE” means decabromodiphenyl ether or any technical mixture in which decabromodiphenyl ether is a congener.

(7) “Flame retardant” means any chemical that is added to a plastic, foam, or textile to inhibit flame formation.

(8) “Manufacturer” means any person:

(A) who manufactures a final product containing a flame retardant regulated under this chapter; or

(B) whose brand name is affixed to a final product containing a flame retardant regulated under this chapter.

(9) “Motor vehicle” means every vehicle intended primarily for use and operation on the public highways and shall include farm tractors and other machinery used in the production, harvesting, and care of farm products.

(10) “OctaBDE” means octabromodiphenyl ether or any technical mixture in which octabromodiphenyl ether is a congener.

(11) “PBDE” means polybrominated diphenyl ether.

(12) “PentaBDE” means pentabromodiphenyl ether or any technical mixture in which pentabromodiphenyl ether is a congener.

(13) “Residential upholstered furniture” means furniture intended for personal use that includes cushioning material covered by fabric or similar material.

(14) “TCEP” means tris(2-chloroethyl) phosphate, chemical abstracts service number 115-96-8, as of July 1, 2013.

(15) “TCPP” means tris(2-chloro-1-methylethyl) phosphate, chemical abstracts service number 13674-84-5, as of July 1, 2013.

(16) “TDCPP” means tris(1,3-dichloro-2-propyl) phosphate, chemical abstracts service number 13674-87-8, as of July 1, 2013.

(17) “Technical mixture” means a PBDE mixture that is sold to a manufacturer. A technical mixture is named for the predominant congener in the mixture but is not exclusively made up of that congener.

(Added 2013, No. 85, § 1.)

§ 2973 Brominated flame retardants; prohibition

(a) As of July 1, 2010, no person may offer for sale, distribute for sale, distribute for promotional purposes, or knowingly sell at retail a product containing octaBDE or pentaBDE in a concentration greater than 0.1 percent by weight.

(b) Except for inventory purchased prior to July 1, 2009, a person may not, as of July 1, 2010, manufacture, offer for sale, distribute for sale, or knowingly sell at retail the following products containing decaBDE in a concentration greater than 0.1 percent by weight:

(1) a mattress or mattress pad; or

(2) upholstered furniture.

(c) Except for inventory purchased prior to July 1, 2009, a person may not, as of July 1, 2012, manufacture, offer for sale, distribute for sale, or knowingly sell at retail a television or computer with a plastic housing containing decaBDE in a concentration greater than 0.1 percent by weight.

(d)(1) Except as provided in subdivision (2) of this subsection, beginning July 1, 2013, no person may manufacture, sell or offer for sale, or distribute for sale or use in the State plastic shipping pallets that contain decaBDE in a concentration greater than 0.1 percent by weight.

(2) Subdivision (1) of this subsection shall not apply to the sale, lease, distribution, or use in the State of:

(A) plastic shipping pallets manufactured prior to January 1, 2011; or

(B) plastic shipping pallets manufactured from recycled shipping pallets that contain decaBDE in a concentration that is no greater than the concentration of decaBDE in the recycled pallets from which the plastic pallets were manufactured.

(Added 2013, No. 85, § 1.)

§ 2974 Chlorinated flame retardants

(a) Except for inventory manufactured prior to January 1, 2014, no person, other than a retailer, shall, as of January 1, 2014, manufacture, offer for sale, distribute for sale, or knowingly sell in or into this State any children’s product or residential upholstered furniture that contains a concentration of TCEP or TDCPP that is greater than 0.1 percent by weight in any product component.

(b) A retailer shall not, as of July 1, 2014, knowingly sell or offer for sale in or into this State any children’s product or residential upholstered furniture that contains a concentration of TCEP or TDCPP that is greater than 0.1 percent by weight in any product component.

(c)(1) Notwithstanding the requirements of subsections (a) and (b) of this section, the 0.1 percent-by-weight thresholds under this section for TCEP and TDCPP shall be applied to an individual article and not to individual product components for the following:

(A) personal computers, audio and video equipment, calculators, wireless telephones, game consoles, handheld devices incorporating a screen that are used to access interactive software and their associated peripherals, and cable and other similar connecting devices; and

(B) interactive software intended for leisure and entertainment, such as computer games, and their storage media, such as compact discs.

(2) In applying the requirements of the 0.1 percent-by-weight thresholds under this section for TCEP and TDCPP to an individual article under this subsection, the Attorney General shall interpret what constitutes an “article” in a manner that is consistent with industry practices and guidance, including the European Union’s Registration, Evaluation, and Restriction on Chemical Substances regulation, known as “REACH,” Regulation (EC) Number 1907/2006, Art. 3(3).

(Added 2013, No. 85, § 1.)

§ 2975 Notice to retailers; disclosure of product content; consultation

(a) As of July 1, 2010, a manufacturer of a product that contains decaBDE and that is prohibited under subsection 2973(c) or (d) of this chapter shall notify persons that sell the manufacturer’s product of the requirements of this chapter.

(b) As of July 1, 2013, a manufacturer of a product that contains TCEP or TDCPP and that is prohibited under subsection 2974(a) or (b) of this chapter shall notify persons that sell the manufacturer’s product of the requirements of this chapter.

(c) As of March 31, 2014, a person other than a retailer who, since July 1, 2013, has manufactured, distributed, or sold in or into this State any product containing TCEP or TDCPP that is prohibited under subsection 2974(a) or (b) of this chapter shall notify persons who sell the manufacturer’s product of the fact that the product sold to the person selling the manufacturer’s product contains TCEP or TDCPP. The notification shall be sent by mail and shall notify the person selling the manufacturer’s product of the concentration of TCEP or TDCPP in the product sold in percent by weight of each product component.

(d) The Attorney General shall consult with retailers and retailer associations to assist retailers in complying with the requirements of this chapter.

(Added 2013, No. 85, § 1.)

§ 2976 Replacement of regulated flame retardants

A manufacturer shall not replace decaBDE, TCEP, or TDCPP with a chemical that is:

(1) classified as “known to be a human carcinogen” or “reasonably anticipated to be a human carcinogen” in the most recent report on carcinogens by the National Toxicology Program in the U.S. Department of Health and Human Services;

(2) classified as “carcinogenic to humans” or “likely to be carcinogenic to humans” in the U.S. Environmental Protection Agency’s most recent list of chemicals evaluated for carcinogenic potential; or

(3) identified by the U.S. Environmental Protection Agency or National Institutes of Health as causing birth defects, hormone disruption, neurotoxicity, or harm to reproduction or development.

(Added 2013, No. 85, § 1.)

§ 2977 Exemptions

The requirements and prohibitions of this chapter shall not apply to:

(1) the sale or resale of used products;

(2) motor vehicles or parts for use on motor vehicles; and

(3) building insulation materials.

(Added 2013, No. 85, § 1.)

§ 2978 Violations; enforcement

A violation of this chapter shall be considered a violation of the Consumer Protection Act, chapter 63 of this title. The Attorney General has the same authority to make rules, conduct civil investigations, enter into assurances of discontinuance, and bring civil actions, and private parties have the same rights and remedies as provided under chapter 63, subchapter 1 of this title.

(Added 2013, No. 85, § 1.)

§ 2979 Production of information

In addition to any other remedies and procedures authorized by this chapter, the Attorney General may request a manufacturer of upholstered furniture, mattresses, mattress pads, computers, televisions, children’s products, or residential upholstered furniture offered for sale or distributed for sale in this State to provide the Attorney General with a certificate of compliance with this chapter with respect to such products. Within 30 days of receipt of the request for a certificate of compliance, the manufacturer shall:

(1) provide the Attorney General with a certificate declaring that its product complies with the requirements of this chapter; or

(2) notify persons who sell in this State a product of the manufacturer’s which does not comply with this chapter that sale of the product is prohibited and submit to the Attorney General a list of the names and addresses of those notified.

(Added 2013, No. 85, § 1.)

§ 2980 Department of Health rulemaking; TCPP

(a) The Commissioner may adopt by rule a prohibition on the manufacture, offer for sale, distribution for sale, or knowing sale at retail in or into the State of the flame retardant TCPP in children’s products and residential upholstered furniture if the Commissioner determines, based on the weight of available scientific studies, that the toxicity of TCPP and its potential exposure pathways in those products pose a significant public health risk as that term is defined in 18 V.S.A. § 2(12).

(b) The rule shall not regulate TCPP in a manner that is materially different from the requirements of sections 2972 (definitions), 2974 (chlorinated flame retardants), 2975 (notice to retailers; disclosure of product content; consultation), 2976 (replacement of regulated flame retardants), 2977 (exemptions), 2978 (violations; enforcement), and 2979 (production of information) of this title regarding the regulation of TCEP and TDCPP. The Commissioner shall adopt reasonable time frames for manufacturers, distributors, and retailers to comply with such provisions that are comparable to the time frames for the regulation of TCEP and TDCPP.

(c) A violation of a prohibition or requirement adopted by rule under this section shall be enforceable by the Attorney General under section 2978 of this title as a violation of this chapter.

(d) In addition to the public participation requirements of 3 V.S.A. chapter 25 and prior to submitting a rule authorized under this section to the Secretary of State under 3 V.S.A. § 838, the Commissioner shall make reasonable efforts to consult with interested parties within the State regarding a proposed prohibition on the manufacture, offer for sale, distribution for sale, or knowing sale at retail in the State of the flame retardant TCPP. The Commissioner may satisfy the consultation requirement of this section through the use of one or more workshops, focused work groups, dockets, meetings, or other forms of communication.

(e) A rule adopted by the Commissioner under this section shall become effective according to the following:

(1) A proposed rule filed with the Secretary of State under 3 V.S.A. § 838 on or before July 1, 2014 shall not go into effect earlier than one calendar year after the Commissioner files the adopted rule under 3 V.S.A. chapter 25.

(2) A proposed rule filed with the Secretary of State under 3 V.S.A. § 838 after July 1, 2014 shall not go into effect earlier than one calendar year after the Commissioner files the adopted rule under 3 V.S.A. chapter 25, unless the Commissioner determines that an earlier effective date is required to protect human health, the Commissioner notifies interested parties of the determination, and the new effective date is established by rule.

(Added 2013, No. 85, § 1.)

Chapter 81 Gristmills

§ 3001 Posting of rates

(a) An owner or occupant of a gristmill shall keep posted in a conspicuous place in such mill a notice of the rates of toll demanded for grinding each kind of grain.

(b) [Repealed.]

(Amended 1959, No. 262, § 37, eff. June 11, 1959.)

§ 3002 Excessive toll; penalty

An owner or occupant of such gristmill who exacts a greater amount of toll than is set forth in such notice shall forfeit $3.00 to the person injured to be recovered in a civil action on this statute.

Chapter 82 Scrap Metal Processors

§ 3021 Definitions

As used in this chapter:

(1) [Repealed.]

(2) “Ferrous scrap” means any scrap metal consisting primarily of iron, steel, or both, including large manufactured articles such as automobile bodies that may contain other substances to be removed and sorted during normal processing operations of scrap metal.

(3) “Metal article” means any manufactured item consisting of metal that is usable for its originally intended purpose without processing, repair, or alteration, including railings, copper or aluminum wire, copper pipe and tubing, bronze cemetery plaques, urns, markers, plumbing fixtures, and cast-iron radiators.

(4) “Nonferrous scrap” means any scrap metal consisting primarily of metal other than iron or steel, and does not include aluminum beverage cans, post-consumer household items, items removed during building renovations or demolitions, or large manufactured items containing small quantities of nonferrous metals such as automobile bodies and appliances.

(5) “Proprietary article” means any of the following:

(A) Any metal article stamped, engraved, stenciled, or marked as being or having been the property of a governmental entity, public utility, or a transportation, shipbuilding, ship repair, mining, or manufacturing company.

(B) Any hard-drawn copper electrical conductor, cable, or wire greater than 0.375 inches in diameter, stranded or solid.

(D) Metal beer kegs.

(E) Manhole covers.

(F) Catalytic converters.

(6) “Scrap metal” means any manufactured item or article that contains metal.

(7) “Scrap metal processor” means:

(A) a salvage yard, as defined in 24 V.S.A. § 2241(7); or

(B) a person engaged in the business of purchasing ferrous scrap, nonferrous scrap, metal articles, or proprietary articles, whether for resale or for processing into raw material products consisting of prepared grades.

(i) a salvage yard described in 24 V.S.A. § 2248(e); or

(ii) a salvage yard or salvage dealer that only accepts or dismantles motor vehicles and flattens or crushes the motor vehicles for transportation to a scrap metal processor.

(8) “Railroad scrap” means any scrap metal consisting primarily of the steel components used in rolling stock and railroad tracks, including rails, joint bars, tie plates, anchors, turnouts, frogs, and spikes. “Railroad scrap” also includes railroad signals and signal components.

(Added 2007, No. 195 (Adj. Sess.), § 10; amended 2011, No. 167 (Adj. Sess.), § 1, eff. May 18, 2012; 2013, No. 167 (Adj. Sess.), § 27.)

§ 3022 Purchase of nonferrous scrap, metal articles, proprietary articles, and railroad scrap

(a) Catalytic converters.

(1) A scrap metal processor shall not purchase more than one used and detached catalytic converter per day from any person, other than a motor vehicle recycler or motor vehicle repair shop.

(2) A person, other than a motor vehicle recycler or motor vehicle repair shop, shall not transport simultaneously two or more used and detached catalytic converters unless:

(A) each catalytic converter is engraved or otherwise permanently marked with the vehicle identification number of the vehicle from which it was removed; and

(B) the person transporting the catalytic converter has in the person’s possession documentation demonstrating proof of lawful ownership as specified in subdivision (b)(1) of this section.

(b) Documentation required for sale. A scrap metal processor may purchase nonferrous scrap, metal articles, proprietary articles, and railroad scrap only if the scrap metal processor complies with all the following procedures:

(1) At the time of sale, the processor:

(A) requires the seller to provide a current government-issued photographic identification that indicates the seller’s full name, current address, and date of birth, and records in a permanent ledger the identification information of the seller, the time and date of the transaction, the license number of the seller’s vehicle, and a description of the items received from the seller; and

(B) requests and, collects:

(i) third-party documentation that establishes that the seller lawfully owns the items to be sold, such as a bill of sale, itemized receipt, or letter of authorization signed by the person from whom the seller purchased the item; or

(ii) a written affidavit of ownership that states that the seller lawfully owns the items to be sold.

(2) After purchasing an item from a person who does not provide a bill of sale, itemized receipt, or letter of authorization signed by the person from whom the seller purchased the item pursuant to subdivision (1)(B)(i) of this subsection, the processor:

(A) submits to the Department of Public Safety not later than the close of the following business day a report that describes the item and the seller’s identifying information required in subdivision (1)(A) of this subsection; and

(B) holds the item for at least 10 days following purchase.

(c) Retention of records. The information collected by a scrap metal processor pursuant to this section shall be retained for at least five years at the processor’s normal place of business or other readily accessible and secure location. On request, this information shall be made available to any law enforcement official or authorized security agent of a governmental entity who provides official credentials at the scrap metal processor’s business location during regular business hours.

(Added 2007, No. 195 (Adj. Sess.), § 10; amended 2011, No. 167 (Adj. Sess.), § 1, eff. May 18, 2012; 2013, No. 167 (Adj. Sess.), § 28; 2023, No. 31, § 1, eff. July 1, 2023.)

§ 3023 Penalties

(a) A person who violates any provision of this chapter for the first time may be assessed a civil penalty not to exceed $1,000.00 for each transaction.

(b) A person who violates any provision of this chapter for a second or subsequent time shall be fined not more than $25,000.00 for each transaction.

(Added 2007, No. 195 (Adj. Sess.), § 10; amended 2023, No. 31, § 1, eff. July 1, 2023.)

Chapter 82A Labeling of Food Produced with Genetic Engineering

§ 3041 Purpose

It is the purpose of this chapter to:

(1) Public health and food safety. Establish a system by which persons may make informed decisions regarding the potential health effects of the food they purchase and consume and by which, if they choose, persons may avoid potential health risks of food produced from genetic engineering.

(2) Environmental impacts. Inform the purchasing decisions of consumers who are concerned about the potential environmental effects of the production of food from genetic engineering.

(3) Consumer confusion and deception. Reduce and prevent consumer confusion and deception by prohibiting the labeling of products produced from genetic engineering as “natural” and by promoting the disclosure of factual information on food labels to allow consumers to make informed decisions.

(4) Protecting religious practices. Provide consumers with data from which they may make informed decisions for religious reasons.

(Added 2013, No. 120 (Adj. Sess.), § 2, eff. July 1, 2016.)

§ 3042 Definitions

As used in this chapter:

(1) “Consumer” has the same meaning as in subdivision 2451a(1) of this title.

(2) “Enzyme” means a protein that catalyzes chemical reactions of other substances without itself being destroyed or altered upon completion of the reactions.

(3) “Food” means food intended for human consumption.

(4) “Genetic engineering” is a process by which a food is produced from an organism or organisms in which the genetic material has been changed through the application of:

(A) in vitro nucleic acid techniques, including recombinant deoxyribonucleic acid (DNA) techniques and the direct injection of nucleic acid into cells or organelles; or

(B) fusion of cells, including protoplast fusion, or hybridization techniques that overcome natural physiological, reproductive, or recombination barriers, where the donor cells or protoplasts do not fall within the same taxonomic group, in a way that does not occur by natural multiplication or natural recombination.

(5) “In vitro nucleic acid techniques” means techniques, including recombinant DNA or ribonucleic acid techniques, that use vector systems and techniques involving the direct introduction into the organisms of hereditary materials prepared outside the organisms such as micro-injection, chemoporation, electroporation, micro-encapsulation, and liposome fusion.

(6) “Manufacturer” means a person who:

(A) produces a processed food or raw agricultural commodity under its own brand or label for sale in or into the State;

(B) sells in or into the State under its own brand or label a processed food or raw agricultural commodity produced by another supplier;

(C) owns a brand that it licenses or licensed to another person for use on a processed food or raw commodity sold in or into the State;

(D) sells in, sells into, or distributes in the State a processed food or raw agricultural commodity that it packaged under a brand or label owned by another person;

(E) imports into the United States for sale in or into the State a processed food or raw agricultural commodity produced by a person without a presence in the United States; or

(F) produces a processed food or raw agricultural commodity for sale in or into the State without affixing a brand name.

(7) “Organism” means any biological entity capable of replication, reproduction, or transferring of genetic material.

(8) “Processed food” means any food other than a raw agricultural commodity and includes any food produced from a raw agricultural commodity that has been subjected to processing such as canning, smoking, pressing, cooking, freezing, dehydration, fermentation, or milling.

(9) “Processing aid” means:

(A) a substance that is added to a food during the processing of the food but that is removed in some manner from the food before the food is packaged in its finished form;

(B) a substance that is added to a food during processing, is converted into constituents normally present in the food, and does not significantly increase the amount of the constituents naturally found in the food; or

(C) a substance that is added to a food for its technical or functional effect in the processing but is present in the finished food at levels that do not have any technical or functional effect in that finished food.

(10) “Raw agricultural commodity” means any food in its raw or natural state, including any fruit or vegetable that is washed, colored, or otherwise treated in its unpeeled natural form prior to marketing.

(Added 2013, No. 120 (Adj. Sess.), § 2, eff. July 1, 2016; amended 2021, No. 20, § 30.)

§ 3043 Labeling of food produced with genetic engineering

(a) Except as set forth in section 3044 of this title, food offered for sale by a retailer after July 1, 2016 shall be labeled as produced entirely or in part from genetic engineering if it is a product:

(1) offered for retail sale in Vermont; and

(2) entirely or partially produced with genetic engineering.

(b) If a food is required to be labeled under subsection (a) of this section, it shall be labeled as follows:

(1) in the case of a packaged raw agricultural commodity, the manufacturer shall label the package offered for retail sale, with the clear and conspicuous words “produced with genetic engineering”;

(2) in the case of any raw agricultural commodity that is not separately packaged, the retailer shall post a label appearing on the retail store shelf or bin in which the commodity is displayed for sale with the clear and conspicuous words “produced with genetic engineering”; or

(3) in the case of any processed food that contains a product or products of genetic engineering, the manufacturer shall label the package in which the processed food is offered for sale with the words: “partially produced with genetic engineering”; “may be produced with genetic engineering”; or “produced with genetic engineering.”

(c) Except as set forth under section 3044 of this title, a manufacturer of a food produced entirely or in part from genetic engineering shall not label the product on the package, in signage, or in advertising as “natural,” “naturally made,” “naturally grown,” “all natural,” or any words of similar import that would have a tendency to mislead a consumer.

(d) This section and the requirements of this chapter shall not be construed to require:

(1) the listing or identification of any ingredient or ingredients that were genetically engineered; or

(2) the placement of the term “genetically engineered” immediately preceding any common name or primary product descriptor of a food.

(Added 2013, No. 120 (Adj. Sess.), § 2, eff. July 1, 2016.)

§ 3044 Exemptions

The following foods shall not be subject to the labeling requirements of section 3043 of this title:

(1) Food consisting entirely of or derived entirely from an animal that has not itself been produced with genetic engineering, regardless of whether the animal has been fed or injected with any food, drug, or other substance produced with genetic engineering.

(2) A raw agricultural commodity or processed food derived from it that has been grown, raised, or produced without the knowing or intentional use of food or seed produced with genetic engineering. Food will be deemed to be as described in this subdivision only if the person otherwise responsible for complying with the requirements of subsection 3043(a) of this title with respect to a raw agricultural commodity or processed food obtains, from whomever sold the raw agricultural commodity or processed food to that person, a sworn statement that the raw agricultural commodity or processed food has not been knowingly or intentionally produced with genetic engineering and has been segregated from and has not been knowingly or intentionally commingled with food that may have been produced with genetic engineering at any time. In providing such a sworn statement, any person may rely on a sworn statement from his or her own supplier that contains the affirmation set forth in this subdivision.

(3) Any processed food that would be subject to subsection 3043(a) of this title solely because it includes one or more processing aids or enzymes produced with genetic engineering.

(4) Any beverage that is subject to the provisions of Title 7.

(5) Any processed food that would be subject to subsection 3043(a) of this title solely because it includes one or more materials that have been produced with genetic engineering, provided that the genetically engineered materials in the aggregate do not account for more than 0.9 percent of the total weight of the processed food.

(6) Food that an independent organization has verified has not been knowingly or intentionally produced from or commingled with food or seed produced with genetic engineering. The Office of the Attorney General, after consultation with the Department of Health, shall approve by procedure the independent organizations from which verification shall be acceptable under this subdivision (6).

(7) Food that is not packaged for retail sale and that is:

(A) a processed food prepared and intended for immediate human consumption; or

(B) served, sold, or otherwise provided in any restaurant or other food establishment, as defined in 18 V.S.A. § 4301, that is primarily engaged in the sale of food prepared and intended for immediate human consumption.

(8) Medical food, as that term is defined in 21 U.S.C. § 360ee(b)(3).

(Added 2013, No. 120 (Adj. Sess.), § 2, eff. July 1, 2016.)

§ 3045 Retailer liability

(a) A retailer shall not be liable for the failure to label a processed food as required by section 3043 of this title unless the retailer is the producer or manufacturer of the processed food.

(b) A retailer shall not be held liable for failure to label a raw agricultural commodity as required by section 3043 of this title, provided that the retailer, within 30 days of any proposed enforcement action or notice of violation, obtains a sworn statement in accordance with subdivision 3044(2) of this title.

(Added 2013, No. 120 (Adj. Sess.), § 2, eff. July 1, 2016.)

§ 3046 Severability

If any provision of this chapter or its application to any person or circumstance is held invalid or in violation of the Constitution or laws of the United States or in violation of the Constitution or laws of Vermont, the invalidity or the violation shall not affect other provisions of this section that can be given effect without the invalid provision or application, and to this end, the provisions of this chapter are severable.

(Added 2013, No. 120 (Adj. Sess.), § 2, eff. July 1, 2016.)

§ 3047 False certification

It shall be a violation of this chapter for a person knowingly to provide a false statement under subdivision 3044(2) of this title that a raw agricultural commodity or processed food has not been knowingly or intentionally produced with genetic engineering and has been segregated from and has not been knowingly or intentionally commingled with food that may have been produced with genetic engineering at any time.

(Added 2013, No. 120 (Adj. Sess.), § 2, eff. July 1, 2016.)

§ 3048 Penalties; enforcement

(a) Any person who violates the requirements of this chapter shall be liable for a civil penalty of not more than $1,000.00 per day, per product. Calculation of the civil penalty shall not be made or multiplied by the number of individual packages of the same product displayed or offered for retail sale. Civil penalties assessed under this section shall accrue and be assessed per each uniquely named, designated, or marketed product.

(b) The Attorney General shall have the same authority to make rules, conduct civil investigations, enter into assurances of discontinuance, and bring civil actions as provided under chapter 63, subchapter 1 of this title. Consumers shall have the same rights and remedies as provided under chapter 63, subchapter 1 of this title.

(Added 2013, No. 120 (Adj. Sess.), § 2, eff. July 1, 2016.)

Chapter 83 Innkeepers and Victualers

Subchapter 1 Licensing

§ 3061 Issuance and revocation

(a) The selectboard members may license for one year, or a less time, suitable persons to keep restaurants, or other places dispensing food or drink to the public, and inns or hotels in their respective towns, and may revoke such licenses granted by them or by their predecessors when the public good requires it. This subsection shall not apply to homes catering to tourists, tearooms, or tourist camps.

(b) The judges of the Superior Court may grant licenses to keep inns or hotels in unorganized towns and gores in their respective counties and may revoke the same when the public good so requires.

(c) A person who keeps an inn, hotel, restaurant, or other place dispensing food or drink to the public without a license, when one is required, as provided in subsections (a) and (b) of this section, shall be fined not less than $10.00 nor more than $50.00.

(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)

§ 3062 Recording of license and revocation of license

Licenses granted by the selectboard members shall be signed by a majority of them and shall not be effectual until recorded in the office of the clerk of the town. The expense of recording shall be paid by the person receiving the same, but a charge shall not be made to the person for such license. If such license is revoked, a certificate thereof shall be recorded in the office of the clerk of the town and notice given to the person holding the same.

§ 3063 Revocation by assistant judges of Superior Court

If the selectboard members do not revoke a license granted by them when the public good so requires, the assistant judges of the Superior Court may vacate the same on application of the State’s Attorney of the county in which such license was granted. Six days’ notice in writing of the hearing on such application shall be given to the person licensed.

(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2017, No. 93 (Adj. Sess.), § 10.)

Subchapter 2 Registration of Guests

§ 3101 Registration records

Each keeper of a hotel, inn, lodging house, or roadside camp or cabin shall keep or cause to be kept a record in which shall be recorded the true name and residence of each person engaging or occupying a private room containing a bed or couch or opening into a room containing a bed or couch for any period of the day or night, in any part of the premises controlled by the owner, manager, or lessee. Each keeper shall preserve such registration record for three years.

§ 3102 False registration; failure to register

A person shall not write, or cause to be written, or if in charge of the registration record, knowingly permit to be written, in any such registration record of any hotel, inn, lodging house, or roadside camp or cabin any other or different name or designation than the true name in ordinary use of the person registering or causing himself or herself to be registered therein. Nor shall any person occupying such room fail to register or fail to cause himself or herself to be so registered.

§ 3103 Penalties

A person who violates a provision of sections 3101 and 3102 of this title shall be fined not more than $25.00.

Subchapter 3 Liability of Innkeepers

§ 3141 Liability for loss

If an innkeeper or hotel keeper provides a safe in his or her inn or hotel for the safekeeping of money, jewelry, and valuable papers and articles belonging to the guests of such inn or hotel and gives notice thereof by posting in a conspicuous place in the office and public parlors of such inn or hotel the fact that such safe is provided in which such property may be deposited, and a guest neglects to deliver or deposit therein any such property to the person apparently in charge of the office, such innkeeper or hotel keeper shall not be liable for the loss of any such property sustained by such guests, unless such loss occurs through want of ordinary care and diligence of such innkeeper or hotel keeper.

§ 3142 Limitation on liability

No recovery in excess of $300.00 for loss of personal property shall be had by the guest of an hotel or inn, unless at the time of becoming such guest notice is given by such guest to the proprietor of such hotel or inn that the value of the property deposited by such guest is in excess of the sum of $300.00 with a statement of the value of such property and an offer to pay whatever sum may be required by such proprietor as compensation for the care of such property so deposited.

§ 3143 Loss of samples, apparel, baggage; loss by fire or force

(a) An innkeeper or hotel keeper shall not be liable for loss of or damage to articles known or used as “samples,” unless such loss occurs through want of ordinary care and diligence of such innkeeper or hotel keeper.

(b) An innkeeper or hotel keeper shall not be liable to a guest for the loss of wearing apparel or personal baggage unless such loss occurs through want of ordinary care and diligence of such innkeeper or hotel keeper.

(c) An innkeeper or hotel keeper shall not be liable for loss in case of fire or overwhelming force where such innkeeper or hotel keeper has exercised ordinary and reasonable care in the custody of the baggage or other property of the guest.

Chapter 84 Energy-Efficient Standards for Light Bulbs

§ 3153 Definitions

For purposes of this chapter:

(1) “Department” means the Department of Public Service.

(2) “New product” means reflector incandescent and four-foot, eight-foot, and F40/U fluorescent light bulbs that are sold at retail, offered for retail sale, or installed within the State for the first time.

(Added 1991, No. 259 (Adj. Sess.), § 12.)

§ 3154 Adoption of standards

(a)(1) Rulemaking authority. The Department of Public Service shall adopt by rule, modify, revise, update, and maintain Vermont energy-efficiency standards with respect to new products installed in the State by a contractor or other construction professional or sold at retail in the State. These standards in every instance shall be designed to ensure consumers’ easy access to new products that meet consumers’ needs and preferences and that will be cost effective. These shall be minimum standards and shall not preempt stricter standards otherwise duly established by State or local authority.

(2) Federal action. If federal legislation is passed prior to July 1, 1993 that requires adoption of light bulb standards that are substantially equivalent to those required under this chapter, and they are required to be in effect by July 1, 1995, the Department may forego adoption of the rules required under this chapter. If federal standards are not, in fact, in effect as of July 1, 1995, the Department shall proceed with adoption of standards required under this chapter.

(b) Standards for new products. By no later than July 1, 1993, the Department shall adopt rules establishing energy-efficiency standards for new products, so that each new product covered by those standards shall consume less power in watts per unit of light output in lumens than a maximum reference level to be established by the Department. These rules shall ensure that the standards allow for new products whose fit, availability, and performance are substantially the equivalent of products currently on the market and whose energy savings compensate for any increased cost. If substantially equivalent fit, availability, and performance is not readily attainable in these new products, the rules shall allow products currently on the market to continue to be sold at retail and installed by contractors and construction professionals in the State.

(c) Inventory. Notwithstanding the provisions of this chapter, a retailer may sell light bulbs from the retailer’s stock as it existed on the effective date of the prohibitions established in this chapter.

(Added 1991, No. 259 (Adj. Sess.), § 12.)

§ 3155 Applicability

Subject to the effective date provided by section 3154 of this title, no new product covered by this chapter may be sold at retail, offered for retail sale, imported for retail sale or use, or installed by a contractor or other construction professional in buildings or structures in the State unless the efficiency rating of the product meets or exceeds the levels established by this chapter. The rules shall provide for waiver of the requirements of this section in the event of lack of availability of products of any given category, or for other good cause.

(Added 1991, No. 259 (Adj. Sess.), § 12.)

§ 3156 Test methods

The manufacturer shall cause the testing of samples of each model of each product covered by this chapter in a manner consistent with any test methods established by rule of the Department.

(Added 1991, No. 259 (Adj. Sess.), § 12.)

§ 3157 Certification statements

(a) Manufacturers of products covered by this chapter shall certify to the Department that those products are in compliance with the provisions of this chapter.

(b) Each product, or its packaging that is visible to a retail consumer, shall specify the product’s energy efficiency level in a manner established by rule of the Department.

(c) The Department may require, by rule, other information necessary to permit the determination that products covered by this chapter comply with the standards established by this chapter.

(Added 1991, No. 259 (Adj. Sess.), § 12.)

§ 3158 Enforcement and penalties

(a) The Department may investigate complaints received concerning violations of this chapter and shall report the results of its investigation to the Attorney General or a State’s Attorney. The Attorney General or a State’s Attorney may institute proceedings to enjoin any person found to be violating the provisions of this chapter.

(b) The Department may cause periodic inspections to be made of manufacturers, distributors, or retailers of new products in Vermont in order to determine compliance with this chapter. The Department, by rule, may adopt procedures for inspection and verification of products.

(c) Any manufacturer, distributor, retailer, or contractor who, by a continuing course of conduct on his or her part, or on the part of an employee or agent, willfully violates any provision of this chapter is subject to a civil penalty of not more than $50.00.

(Added 1991, No. 259 (Adj. Sess.), § 12.)

Chapter 85 Lightning Rods, Fire Detection Equipment, and Systems

§§ 3201-3206 Repealed

[Repealed]

2003, No. 8, § 18, eff. April 25, 2005.

Chapter 87 Lime and Lard

Subchapter 1 Lime

§ 3261 Packing and branding of lime

Lime packed in casks for sale shall be put into good and sufficient casks. Each cask shall be branded with the name of the town in which the lime was manufactured and the name of the manufacturer or vendor of the same.

§ 3262 Penalties

(a) A person who sells or offers for sale lime in a cask not branded as required by section 3261 of this title shall be fined $5.00.

(b) A person who defaces or changes a brand made as required by section 3261, or puts up for sale other lime than that which was first packed in the cask, branded as required by section 3261, to the injury of another person, shall be fined $5.00, and be liable to pay the damages to a person injured thereby.

Subchapter 2 Lard

§ 3291 Compound lard

(a) A person by himself, herself, his or her agent, or servant shall not prepare, sell, or expose for sale lard or a substance intended for use as lard, which contains an ingredient other than the pure fat of swine, in a tierce, bucket, pail, or other package, under a label bearing the words “pure,” “refined,” or “family,” alone or in combination with other words, unless the package containing the same bears upon the outside thereof, in letters not less than a fourth of an inch long, the words “compound lard.”

(b) A person who violates the provision of subsection (a) of this section shall be fined not more than $50.00 for each offense.

Chapter 89 Oils and Gasoline Receptacles

Subchapter 1 Oils

§ 3341 Sale of certain illuminating oils prohibited

A person shall not mix for sale naphtha and illuminating oils or sell or offer for sale such mixture, or sell or offer for sale, except for purposes of remanufacture, illuminating oils made from coal or petroleum products that have a flash point of less than 100 degrees Fahrenheit.

(Amended 1985, No. 65, eff. May 16, 1985.)

§ 3342 Penalties

A person who violates a provision of section 3341 of this title shall be imprisoned not more than one month or fined not more than $100.00, or both. Such person shall also be liable to a person suffering damage from the explosion or ignition of such oil thus unlawfully sold, in a civil action on this statute.

§ 3343 Forfeiture of unlawful oils

Such oil thus unlawfully sold, kept, or offered for sale, with the casks or packages containing the same, shall be forfeited and sold for the purposes of remanufacture. Half of the proceeds of such sale shall go to the State and the other half to the informer.

§ 3344 Sale of naphtha as illuminating oil

A person who keeps or sells or offers for sale naphtha, under the name of oil, shall be liable to the penalties and subject to the liabilities contained in section 3342 of this title.

§ 3345 Inspectors

The selectboard members of a town, or the trustees of a village, where oils are sold, upon the petition of five or more inhabitants, shall annually appoint one or more suitable persons, not interested in the sale of such oils, as inspectors thereof and fix their compensation, which shall be paid by the parties requiring their services.

§ 3346 Oath, duties, and liabilities of inspector

Before entering upon the duties of his or her office, an inspector shall be sworn, and when called upon by a vendor, purchaser, or by any officer mentioned in section 3348 of this title, to test such oils, shall do so with reasonable dispatch by applying the fire test as indicated and determined by Tagliabue’s pyrometer, or some instrument equally accurate.

§ 3347 Fraud or negligence of inspector

An inspector found guilty of fraud, deceit, or culpable negligence in inspecting such oils shall be imprisoned not more than one month or fined not more than $100.00, or both.

§ 3348 Prosecutions

A selectboard member or a police officer of a town or trustee or a police officer of a village, in which such inspectors are appointed, shall cause persons violating the provisions of this chapter to be prosecuted therefor.

Subchapter 2 Gasoline Receptacles

§ 3381 Labels and color of cans

(a) A receptacle containing gasoline or benzol of capacity not more than five gallons, except a motor vehicle, motor boat, gasoline engine, gasoline stove or lamp, shall be painted red and be labeled “gasoline” or “benzol,” as the case may be, in letters of a contrasting color and of a height of not less than one-half inch, or shall bear a red label similarly lettered of sufficient size to be conspicuous. A person shall not keep gasoline or benzol in a receptacle not conforming to the requirements of this section.

(b) A person who violates a provision of subsection (a) of this section shall be fined not more than $50.00.

(Amended 2021, No. 20, § 31.)

Chapter 91 Oleomargarine, Imitation Butter, and Cheese

§§ 3561, 3562 Repealed

[Repealed]

1995, No. 47, § 29, eff. July 1, 1996.

Chapter 93 Outdoor Advertising

Subchapter 1 Outdoor Advertising Generally

§ 3621 Administrative assistant and billboard clerk of outdoor advertising; appointment

The Secretary of Transportation is authorized to appoint an administrative assistant and billboard clerk of outdoor advertising, and such assistants, clerical and otherwise as may be necessary, to prescribe the duties of the administrative assistant and billboard clerk, and, with the approval and consent of the Governor, to prescribe the salary for the administrative assistant. Said billboard clerk and such other assistants, clerical and otherwise, shall be included in and subject to the requirements of the classification and compensation plan of the personnel system authorized in 3 V.S.A. § 310.

(Amended 1959, No. 238, § 1.)

§§ 3622-3643 Repealed

[Repealed]

1967, No. 333 (Adj. Sess.), § 27(a), eff. March 23, 1968.

Subchapter 2 Advertising on Limited Access Highway Facilities

Chapter 95 Paints and Putty

§ 3801 White lead defined

The words “white lead,” as used in this chapter, shall apply to the basic carbonate and the basic sulphate of lead.

§ 3802 Paints, label to contain statement of contents

A person, firm, or corporation that manufactures for sale, sells, or exposes for sale within this State, white lead, paint, or compound intended for use as such, shall label the same by a label printed in the English language and in clear and distinct gothic letters, stating, with substantial accuracy, the percent of white lead, oxide of zinc, red lead, water, pure linseed oil, or substitutes therefor, the name and percent of dryer used, the percent of colored matter and inert material used, the name and residence of the manufacturer of the paint, or of the distributor thereof, or of the party for whom the same is manufactured, the percent of solid and liquid material used, and the net measure of the contents of the container of all liquid or mixed paints, and the net weight of the contents of the package of all paste and semipaste paints sold by weight, or if sold by measure, the net measure of such package.

§ 3803 Labeling of impure turpentine or linseed oil

A person, firm, or corporation that manufactures for sale, sells, or exposes for sale within this State, turpentine or linseed oil that is not absolutely pure, shall label the same with the word “substitute” in plain, legible type.

§ 3804 Labeling impure putty

A person, firm, or corporation that manufactures for sale, sells, or exposes for sale within this State, putty that is not pure linseed oil putty shall label the same with the word “substitute” in plain, legible type.

§ 3805 Penalty for mislabeling

A person, firm, or corporation that manufactures for sale, sells, or exposes for sale within this State paint or mixed paint, paste, or semipaste paint, or compound intended for use as such, white lead, linseed oil, turpentine, or putty, who violates the provisions of sections 3801-3804 of this title shall be fined not more than $100.00, nor less than $25.00 for each offense. However, a person, firm, or corporation that manufactures for sale, sells, or exposes for sale within this State, white lead, paint, or mixed paint, paste, or semipaste paint, containing ingredients other than those enumerated in section 3802 of this title shall not be deemed guilty of a violation of this chapter, in case the same is properly labeled, stating the quantity or amount of each and every ingredient used therein, the name and the place of residence of the manufacturer of the paint, or of the distributor thereof, or of the party for whom the same is manufactured, the percent of solid and liquid material used, and the net measure of the contents of the container of all liquid or mixed paints and the net weight of the contents of the package of all paste and semipaste paints sold by weight, or if sold by measure, the net measure of such package.

§ 3806 Possession to be prima facie evidence of violation

The possession by a person, firm, or corporation dealing in an article or substance described in section 3805 of this title and not labeled as required by the provisions of this chapter, shall be considered prima facie evidence that the same is kept by such person, firm, or corporation in violation of the provisions of this chapter.

§ 3807 Secretary of Agriculture, Food and Markets, general powers

The Secretary of Agriculture, Food and Markets shall have charge of the proper enforcement of the provisions of this chapter. The Secretary shall have access to all places of business, factories, stores, and buildings used for the manufacture or sale of paints, and may open and inspect any package, can, jar, tub, or other receptacle containing paints that might be sold, manufactured, or exposed for sale in violation of the provisions of this chapter. The Secretary may submit samples to the State laboratory of hygiene for analysis and inspection, under the same regulations and with the same restrictions as are provided for the analysis of alcohol. However, the Secretary shall pay for any samples so taken that are found from examination to conform to the provisions of this chapter.

(Amended 2017, No. 83, § 161(2).)

Chapter 97 Pawnbrokers

§ 3861 Pawnbroker defined

The word “pawnbroker” as used in this chapter includes any person, partnership, or corporation, loaning money on deposit or pledge of personal property, other than securities or written evidences of indebtedness; or doing business as furniture storage warehousepersons, and loaning and advancing money upon goods, wares, or merchandise pledged or deposited as collateral security.

§ 3862 License required

(a) A person shall not carry on the business of pawnbroker unless he or she has obtained a license so to do as provided in this section.

(b) The selectboard members of a town or the aldermen of a city may grant to such citizens as they deem proper, and who produce satisfactory evidence of their good character, a license authorizing such citizens to carry on the business of a pawnbroker. Such license shall designate the place in which such a person shall carry on such business, and such a person shall not carry on such business in any other place than the one designated in such license.

(Amended 2021, No. 20, § 32.)

§ 3863 Fees; bond; revocation of license

A person receiving such license shall pay therefor the sum of $15.00 annually for the use of the town. Such license shall expire one year from the date thereof, and may be renewed on payment of the same sum. At the time of receiving such license, a licensee shall file a bond to the selectboard members or aldermen of such town or city, to be executed by the person so licensed, and by two responsible sureties or a bonding company in the penal sum of $500.00, which bond shall be conditioned for the faithful performance of the duties and obligations pertaining to the business so licensed, and the selectboard members or aldermen may revoke such license for cause.

§ 3864 Action on bond

If a person is aggrieved by the misconduct of such licensed pawnbroker, and recovers judgment against him or her therefor, after the return, unsatisfied, either in whole or in part, of an execution issued upon such judgment, such person may maintain an action in his or her own name upon the bond of such pawnbroker, provided the court, upon application made for that purpose, shall grant such leave to prosecute.

§ 3865 Records of a pawnbroker

(a) In each year a pawnbroker makes loans or advances totaling over $2,500.00 for items pledged or deposited with the pawnbroker, he or she shall maintain the following records for each transaction in that year:

(1) a legible statement written at the time of the transaction stating the amount of money lent or advanced for the items, the time of the transaction, and the rate of interest to be paid, as applicable;

(2) a legible statement of the name, current address, telephone number, and vehicle license number of the person pledging or depositing the items;

(3) a legible written description and photograph, or alternatively a video, of the items;

(4) a photocopy of a government-issued identification card issued to the person pledging or depositing the items, if available.

(b) At all reasonable times, the records required under subsection (a) of this section shall be open to the inspection of law enforcement. A law enforcement agency shall make a reasonable effort to notify a pawnbroker before conducting an inspection pursuant to this section unless providing notice would interfere with a criminal investigation or any other legitimate law enforcement purpose.

(Amended 2011, No. 167 (Adj. Sess.), § 4, eff. May 18, 2012; 2013, No. 75, § 22a; eff. June 5, 2013; 2013, No. 196 (Adj. Sess.), § 1, eff. Jan. 1, 2015.)

§ 3866 Issuance of pawn ticket; lost tickets

At the time of making a loan, a pawnbroker shall deliver to the person pawning or pledging any goods, articles, or things a memorandum or note signed by him or her containing the substance of the entry required to be made in his or her book by section 3865 of this title, and a charge shall not be made or received by the pawnbroker for such entry, memorandum, or note. The holder of such memorandum or note shall be presumed to be the person entitled to redeem the pledge, and the pawnbroker shall deliver such article to the person so presenting such memorandum or note on payment of principal and interest. Should such ticket be lost or mislaid, the pawnor shall at once apply to the pawnbroker describing the article pawned, in which case it shall be the duty of the pawnbroker to permit such person to examine his or her books, and, on finding the entry for such ticket, note, or memorandum so lost, the pawnbroker shall issue a second or stop ticket for the same. In case such pawnor neglects so to apply and examine such books and receive such memorandum or note in the manner provided in this section, the pawnbroker shall deliver the pledge to any person producing such original ticket for the redemption thereof. This section shall not be so construed as to limit or affect such pawnbroker’s common law liability in cases where goods are stolen or other legal defects of title in the pledgor exist.

(Amended 2021, No. 20, § 33.)

§ 3867 Rate of interest on loans

A pawnbroker shall not demand or receive a greater rate of interest than five percent per month or fraction of a month upon a loan not exceeding the sum of $50.00, nor more than three percent per month upon a loan exceeding the sum of $50.00; provided a charge of less than $0.15 shall not be made on any loan or pledge.

§ 3868 Sale of pawned property

A pawnbroker shall not sell pawned or pledged property until the same has remained six months in his or her possession without redemption, and upon such sale, shall keep a record of the date of such sale, the name and address of the purchaser, and the price paid, and such record shall be subject to inspection as other records of such pawnbroker.

§ 3869 Application of proceeds of sale

Surplus money, if any, arising from such sale, after deducting the amount of the loan and the interest then due on the same, shall be paid over after three months by the pawnbroker to the person who would be entitled to redeem the pledge in case such sale had not taken place.

§ 3870 Pawning property of persons under eighteen

A person carrying on the business of pawnbroker in this State shall not accept a pledge or article of personal property offered by a person under 18 years of age without written authority of the parents or guardians of such minor.

§ 3871 Penalties

(a) A licensee who violates a provision of sections 3863-3864 or 3866-3870 of this title shall be fined not more than $100.00 nor less than $10.00 for each offense.

(b) A pawnbroker or precious metal dealer who violates a provision of section 3865 or 3872 of this chapter:

(1) may be assessed a civil penalty not to exceed $1,000.00 for a first violation; and

(2) shall be fined not more than $25,000.00 for a second or subsequent violation.

(Amended 2013, No. 75, § 22a, eff. June 5, 2013.)

§ 3872 Repealed

[Repealed]

2013, No. 196 (Adj. Sess.), § 2, eff. January 1, 2015.

Chapter 97A Precious Metal Dealers

§ 3881 Definitions

As used in this chapter:

(1) “Antique” means an item, other than an item of jewelry, and including a collectible coin, that is:

(A) collected or desired due to age, rarity, condition, or other similar unique feature;

(B) purchased for the purpose of resale; and

(2) “Criminal history record” means all information documenting a natural person’s contact with the criminal justice system, including data regarding identification, arrest or citation, arraignment, judicial disposition, custody, and supervision.

(3) “Disqualifying offense” means:

(A) a felony under:

(i) 13 V.S.A. chapter 47 (fraud);

(ii) 13 V.S.A. chapter 49 (fraud in commercial transaction);

(iii) 13 V.S.A. chapter 57 (larceny and embezzlement); or

(iv) 18 V.S.A. chapter 84 (possession and control of regulated drugs); or

(B) a violent felony under 18 V.S.A. § 4474g(e); or

(C) one of the following misdemeanors, if a conviction for the misdemeanor occurred within the ten years preceding the date on which the convicted person applies for a certification to do business as a precious metal dealer:

(i) petit larceny in violation of 13 V.S.A. § 2502;

(ii) receipt of stolen property in violation of 13 V.S.A. § 2561;

(iii) false pretenses or tokens in violation of 13 V.S.A. § 2002;

(iv) burglary in violation of 13 V.S.A. § 1201; or

(v) false tokens in violation of 13 V.S.A. § 2003; or

(D) a violation of this chapter punishable under subdivision 3890(c)(2) of this title.

(4) “Engaged in the business of purchasing or selling precious metal” means conducting a regular course of trade in precious metal with retail buyers or sellers, and does not include:

(A) retail trade in new precious metal;

(B) trade in precious metal that is exclusively wholesale, including business-to-business transactions for precious metal used in medical and dental applications; or

(C) trade in precious metal commodities for the purpose of investment, including bullion, commodities funds, or commodities futures.

(5) “Precious metal” means used gold, silver, platinum, palladium, coins sold for more than face value, jewelry, or similar items, but does not include an antique.

(6)(A) “Precious metal dealer” means a person who:

(i) has a physical presence in this State, whether temporary or permanent;

(ii) is engaged in the business of purchasing or selling precious metal; and

(iii) purchases or sells $2,500.00 or more of precious metal in a consecutive 12-month period.

(B) “Precious metal dealer” does not include a charitable organization that is qualified as tax exempt under 26 U.S.C. § 501.

(7) “Principal” means a natural person who is a director, officer, member, manager, partner, or creditor.

(Added 2013, No. 196 (Adj. Sess.), § 3, eff. Jan. 1, 2015.)

§ 3882 Certification required

(a) Certification from the Department of Public Safety is required to conduct business as a precious metal dealer in this State.

(b) An application for certification shall include for each applicant and its principals:

(1) the name, address, telephone number, and valid e-mail address or other electronic contact information;

(2) the name of, and the nature of the affiliation with, any business involving the purchase or sale of precious metal within the past five years;

(3) the age, date, and place of birth of each natural person;

(4) the residential address and place of employment of each natural person; and

(5) any crime of which a natural person has been convicted and the date and place of conviction.

(c) The Department shall not issue or renew a certification if an applicant or one of its principals has been convicted on or after January 1, 2015 of a disqualifying offense.

(d)(1) Prior to issuing or renewing a certification pursuant to this section, the Department shall obtain a Vermont criminal history record, an out-of-state criminal history record, and a criminal history record from the Federal Bureau of Investigation for an applicant and each of its principals.

(2) A person for whom a record is requested shall consent to the release of criminal history records to the Department on forms substantially similar to the release forms developed in accordance with 20 V.S.A. § 2056c.

(3) Upon obtaining a criminal history record, the Department shall promptly provide a copy of the record to the person who is the subject of the record and shall inform the person of the right to appeal the accuracy and completeness of the record pursuant to rules adopted by the Department.

(4) The Department shall comply with all laws regulating the release of criminal history records and the protection of individual privacy.

(5) No person shall confirm the existence or nonexistence of criminal history record information to any person who would not be eligible to receive the information pursuant to this chapter.

(Added 2013, No. 196 (Adj. Sess.), § 3, eff. Jan. 1, 2015.)

§ 3883 Fees; renewal; revocation of certification

(a)(1) A person who applies for certification pursuant to section 3882 of this title shall pay a nonrefundable fee of $200.00 to the Department of Public Safety.

(2) A certification shall expire two years from the date it is issued, and may be renewed upon payment of $200.00 and approval of the Department.

(3) A fee collected under this section shall be deposited into a precious metal dealers certification account within the appropriate public safety special fund, which shall be used by the Commissioner of Public Safety to administer the precious metal dealer certification process established in section 3882 of this title.

(b) The Department may revoke a certification for cause at any time during the period of the certification after notice and a hearing pursuant to 3 V.S.A. chapter 25.

(c)(1) The Department shall revoke a certification upon the conviction, on or after January 1, 2015, for a disqualifying offense by a precious metal dealer or one of its principals.

(2) The Department may revoke a certification upon the conviction, on or after January 1, 2015, for a disqualifying offense by an employee of a precious metal dealer acting within his or her scope of employment when he or she committed the offense.

(d) A precious metal dealer shall prominently display his or her certification number at his or her place of business, and shall include his or her certification number in each advertisement, in any medium, that promotes the business or services of the precious metal dealer.

(Added 2013, No. 196 (Adj. Sess.), § 3, eff. Jan. 1, 2015.)

§ 3884 Private right of action

A person injured by a precious metal dealer’s violation of this chapter may bring an action against the dealer for damages arising from the violation.

(Added 2013, No. 196 (Adj. Sess.), § 3, eff. Jan. 1, 2015.)

§ 3885 Records of a precious metal dealer

(a) For each item of precious metal sold to a precious metal dealer, he or she shall:

(1) assign a distinct entry number or, in the case of a lot of items, an entry number for the lot and a sub-lot number for each unmatched item in the lot;

(2) maintain the following records for each item or lot of items:

(A) the amount of money paid and the date and time of the transaction;

(B) the name, current address, and telephone number of the seller;

(C) a legible description written on the day of the transaction that includes for each item any distinguishing mark and name of any kind, such as brand and model name, model and serial number, engraving, etching, affiliation with any institution or organization, date, initials, color, vintage, or image represented;

(D) a digital photograph or video, taken at the time of the transaction, that references the entry number required under subdivision (a)(1) of this section and the date of the transaction;

(E)(i) a government-issued identification card issued to the seller that bears his or her photograph; or

(ii) a government-issued identification card and a digital photograph of the seller’s face; and

(F) documentation of lawful ownership, including a bill of sale, receipt, letter of authorization, or similar evidence, provided that if these forms of documentation are unavailable, the seller shall submit an affidavit of ownership.

(b) A precious metal dealer who sells $50,000.00 or more of precious metal in a consecutive 12-month period shall maintain the records required in this section in a computerized format that can be readily accessed, electronically transmitted, and reproduced in physical form.

(c)(1) A precious metal dealer shall retain the records required in this section for at least three years at his or her normal place of business or other readily accessible and secure location.

(2) At all reasonable times, the records required under this section shall be open to the inspection of law enforcement.

(Added 2013, No. 196 (Adj. Sess.), § 3, eff. Jan. 1, 2015.)

§ 3886 Holding period

A precious metal dealer shall retain precious metal that he or she purchases for no fewer than 10 days before offering an item for sale or for scrap, and he or she shall not remove an item from the State prior to the expiration of this 10-day period.

(Added 2013, No. 196 (Adj. Sess.), § 3, eff. Jan. 1, 2015.)

§ 3887 Purchase of precious metal from persons under 18 years of age

A precious metal dealer shall not purchase precious metal offered for sale by a person under 18 years of age.

(Added 2013, No. 196 (Adj. Sess.), § 3, eff. Jan. 1, 2015.)

§ 3888 Method of payment

In each transaction of $25.00 or more, a precious metal dealer shall pay only by check, draft, or money order for precious metal purchased for the purpose of resale.

(Added 2013, No. 196 (Adj. Sess.), § 3, eff. Jan. 1, 2015.)

§ 3889 Stolen property notification system

(a) The Department of Public Safety shall develop and implement a statewide stolen property notification system, the purpose of which shall be to facilitate timely electronic communication concerning the reported theft of precious metal among precious metal dealers and law enforcement agencies throughout the State.

(b)(1) Upon receiving an official report of theft of precious metal, the Department shall use the System to contact each precious metal dealer at the e-mail address provided pursuant to subdivision 3882(b)(1) of this title and each law enforcement agency that provides an e-mail address for that purpose.

(2) The Department shall include in its notification any information it determines in its discretion is appropriate to assist precious metal dealers and law enforcement agencies in identifying stolen precious metal and in expediting both the return of the stolen property to its owner and the identification and apprehension of suspects.

(3) Notwithstanding subdivision (2) of this subsection, the Department shall redact any personally identifiable information in a notification issued pursuant to this section concerning the identity or any communications with a purported victim and any precious metal dealer unless the victim or dealer expressly waives confidentiality in a writing submitted to the Department for that purpose.

(Added 2013, No. 196 (Adj. Sess.), § 3.)

§ 3890 Penalties

(a) Except as otherwise provided in this section, a person who violates a provision of this chapter shall be assessed a civil penalty of not more than $1,000.00.

(b) A person who operates as a precious metal dealer without the certification required by section 3882 of this title shall be:

(1) for a first offense, imprisoned for not more than six months or fined not more than $10,000.00, or both;

(2) for a second or subsequent offense, imprisoned not more than three years or fined not more than $50,000.00, or both.

(1) for a first offense, imprisoned for not more than six months or fined not more than $10,000.00, or both;

(2) for a second or subsequent offense, imprisoned not more than three years or fined not more than $50,000.00, or both.

(d) The Attorney General or a State’s Attorney shall have the authority to pursue an injunction to prohibit the conduct of a person in violation of this chapter.

(e) For purposes of this section, each transaction in which a person violates a provision of this chapter shall constitute a single violation, regardless of the number of violations of this chapter that occur in the transaction.

(Added 2013, No. 196 (Adj. Sess.), § 3, eff. Jan. 1, 2015.)

Chapter 98 Storage Units

§ 3901 Definitions

As used in this chapter:

(1) “Default” means the violation or failure to perform a duty or obligation created in this chapter or in a rental agreement.

(2) “Electronic mail” means the transmission of information through computer or other electronic means or a communication sent to a person identified by a unique electronic address.

(3) “Last known address” means the mailing address, and the email address if applicable, provided by the occupant in a rental agreement or in a subsequent written notice of a change of address.

(4)(A) “Late fee” means a fee or charge assessed for an occupant’s failure to pay rent or other fees, charges, or expenses when due.

(B) “Late fee” does not include:

(i) interest on a debt;

(ii) reasonable expenses, fees, or charges incurred in the collection of unpaid rent or expenses; or

(iii) fees or charges associated with the enforcement of any other remedy provided by law or a rental agreement.

(5) “Occupant” means a person, successor, assignee, agent, or representative entitled to use storage space under a rental agreement to the exclusion of others.

(6) “Owner” means the owner, operator, lessor, or sublessor of a self- storage facility, an agent, or any other person authorized by the owner to manage the facility or to receive rent from an occupant under a rental agreement.

(7) “Personal information” means written information about a person that is not publicly available and that readily identifies that person or is closely associated with that person, including a Social Security number, credit or debit card information, a bank account number, medical information, or passport information.

(8) “Personal property” means movable property not affixed to land, and includes goods, merchandise, and household items.

(9) “Rental agreement” means a written agreement that establishes or modifies the terms, conditions, rules, or any other provision concerning the use and occupancy of storage space.

(10)(A) “Self-storage facility” means real property designed and used for the purpose of renting or leasing individual storage space to an occupant.

(B) A self-storage facility is not a “warehouse” as defined in 9A V.S.A. § 7-102.

(11) “Storage space” means the individual space at a self-storage facility that is rented to an occupant under a rental agreement.

(Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009; amended 2021, No. 168 (Adj. Sess.), § 1, eff. July 1, 2022.)

§ 3902 Residential purposes

(a) An occupant shall not use storage space at a self-storage facility for residential purposes.

(b) An owner shall not knowingly permit the use of a storage space for residential purposes.

(Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009; amended 2021, No. 168 (Adj. Sess.), § 1, eff. July 1, 2022.)

§ 3903 Disclosures

(a) A rental agreement shall contain the following:

(1) the name and address of the owner and occupant;

(2) the actual monthly occupancy charge, rent, or lease amount for the storage space provided, expressed in dollars;

(3)(A) disclosure of the charges the owner may impose for the occupancy;

(B) a description of the charges, including any security deposit and the conditions for retaining or returning the deposit;

(D) the amount of each charge, expressed in dollars;

(4) a provision that states:

(A) whether property stored in the storage space is insured by the owner against loss or damage; and

(B) the requirement that the occupant must provide his or her own insurance for any property stored; and

(5) notice to an occupant that:

(A) this chapter creates a lien on property stored in the storage space;

(B) the owner may sell the property stored in the storage space to satisfy the lien;

(D) if the owner offers notice by electronic mail, the occupant may elect to receive notice by electronic mail only by indicating the election in the rental agreement.

(b) If a rental agreement contains a limit on the value of property that may be stored in a storage space, the limit is deemed to be the maximum value of the property in the storage space and the maximum liability of the owner for any claim.

(c)(1) An owner may impose a late fee of not more than $20.00 or 20 percent of a rental payment, whichever is greater, for each service period that an occupant does not pay the rent, charges, fees, or expenses when due.

(2) An owner shall not impose a late fee if the occupant pays the rent, charges, fees, and expenses in full not later than five days after the due date.

(3) An owner shall not impose a late fee unless the amount of the fee and the conditions for imposing that fee are stated in the rental agreement.

(d) Except as otherwise provided in a rental agreement, an occupant has the exclusive care, custody, and control of property in a storage space until the property is sold or otherwise disposed pursuant to this chapter.

(e) The disclosures required under subdivisions (a)(4) and (a)(5) and subsections (b)–(d) of this section shall be written in bold type and of a font size equal to or greater than the general text of the agreement.

(Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009; amended 2021, No. 168 (Adj. Sess.), § 1, eff. July 1, 2022.)

§ 3904 Lien

(a) An owner has a possessory lien upon all personal property located in a storage space for:

(1) rent;

(2) labor;

(3) late fees or other charges relating to the personal property; and

(4) expenses arising from the preservation or sale of the property pursuant to this chapter.

(b) The lien created in this section attaches as of the date an occupant stores personal property in a storage space pursuant to a rental agreement.

(Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009; amended 2021, No. 168 (Adj. Sess.), § 1, eff. July 1, 2022.)

§ 3905 Enforcement of lien

If an occupant defaults under a rental agreement, the owner may enforce the lien created in section 3904 of this title pursuant to this section.

(1) First notice of default. Not sooner than seven days after a default, the owner shall notify the occupant of the default by regular mail or electronic mail sent to the occupant’s last known address.

(2) Second notice of default.

(A) Not sooner than 14 days after mailing the first notice, the owner shall notify the occupant of the default by certified mail, first-class mail with a certificate of mailing, or electronic mail sent to the occupant’s last known address.

(B) If the owner sent the second notice of default to the occupant by electronic mail and does not receive a response, return receipt, or delivery confirmation from the same electronic mail address within two days, then before proceeding with a sale, the owner shall send the notice to the occupant either by certified mail or by first-class mail with a certificate of mailing.

(i) An itemized statement of the owner’s claim showing the sum due at the time of the notice and the date when the sum became due.

(ii) A brief and general description of the personal property subject to the lien. An owner is not required to describe the specific contents of a storage space in a self-storage facility beyond stating that it is the contents of a specific storage space in a specific self-storage facility rented by a specific occupant.

(iii) A notice of denial of access to the personal property, if such denial is permitted under the terms of the rental agreement.

(iv) A demand for payment within a specified time not less than 15 days after the mailing of the second notice of default.

(v) A conspicuous statement that unless the claim is paid in full within the time stated in the notice, the personal property will be advertised for sale and sold according to law.

(3) Advertisement. Except as otherwise provided in subdivision (C) or (D) of this subdivision (3):

(A) After the expiration of the time given in the second notice under subdivision (2) of this section, the owner shall publish an advertisement of the sale once a week for two consecutive weeks in the print or electronic version of a newspaper of general circulation where the self-storage facility is located.

(B) The advertisement shall contain the following:

(i) a brief and general description of the personal property as provided in subdivision (2)(C)(ii) of this section;

(ii) the address of the self-storage facility;

(iii) the number, if any, of the space where the personal property is located;

(iv) the name of the occupant; and

(v) the time, place, and manner of the sale.

(C) If there is no newspaper of general circulation where the self-storage facility is located, the owner shall post the advertisement at least 15 days before the date of the sale at the town hall where the self-storage facility is located in the same manner as the auction sales of real property are posted.

(D) As an alternative to the advertisement required in subdivisions (A)–(C) of this subdivision (3), an owner may advertise the sale of personal property in a commercially reasonable manner. For purposes of this subdivision (D), a manner of advertisement is commercially reasonable if three or more independent bidders attend or view the sale.

(4) Notice to other lienholders. Before the expiration of the time given in the second notice under subdivision (2) of this section, the owner shall determine whether the occupant owns any personal property subject to an active lien registered with the Vermont Secretary of State. If any such lien exists, the owner shall notify the lienholder by certified mail not less than 21 days prior to the sale of the property. The notice shall include the following:

(A) A statement describing the property to be sold. There shall be no requirement to describe the specific contents of a storage space in a self-storage facility beyond stating that it is the contents of a specific storage space in a specific self-storage facility rented by a specific occupant.

(B) A statement of the lienholder’s rights under this chapter.

(5) Delivery. For purposes of this chapter:

(A) notice by regular mail or first-class mail with a certificate of mailing is delivered when deposited with the U.S. Postal Service if the mail is properly addressed to the occupant’s last known address and postage is prepaid; and

(B) notice by electronic mail is delivered when properly addressed and sent to an occupant’s last known electronic mail address.

(6) Sale.

(A) An owner that fulfills the notice and advertisement requirements of this section may sell personal property stored in a storage space, subject to the following conditions:

(i) the sale occurs not sooner than 15 days after the first advertisement under subdivision (3) of this section;

(ii) the sale conforms to the terms of the notifications required under this section, or, if the sale will not or does not take place as provided in the notifications, then the owner makes subsequent notifications in the same manner as the original notifications consistent with this section;

(iii) subject to subdivision (C) of this subdivision (6), the owner does not knowingly sell personal information contained in the storage space;

(iv) the sale is held at the self-storage facility, at the nearest suitable place, or on a publicly accessible website;

(v) the owner does not purchase personal property at the sale; and

(vi) the sale is performed in a commercially reasonable manner.

(B) For purposes of subdivision (A)(vi) of this subdivision (6):

(i) A sale is commercially reasonable if it conforms to commercially reasonable practices within a recognized market for the goods or among dealers in the type of goods.

(ii) The sale of more goods than apparently necessary to satisfy an occupant’s obligation is not commercially reasonable unless necessary due to the nature of the goods being sold or the manner in which they are customarily sold.

(iii) The fact that an owner could obtain a better price by sale at a different time or by a different method is not of itself sufficient to establish that the sale was not commercially reasonable.

(C)(i) If an owner has a reasonable belief that the storage space contains the personal information of an occupant or clients, customers, or others with whom the occupant does business, the owner shall not hold a lien sale of the personal information and may destroy the personal information without liability to any person.

(ii) Before the purchaser takes possession of any personal property sold, an owner shall provide notice and shall require written acknowledgment from the purchaser that, if any of the contents contain personal information, the purchaser shall return the personal information to the owner, which the owner may destroy without liability to any person.

(D) Except as provided in subdivision (7) of this section, an owner shall conduct a sale or disposition of a motor vehicle pursuant to 23 V.S.A. chapter 21 and a sale or disposition of a vessel, snowmobile, or all-terrain vehicle pursuant to 23 V.S.A. chapter 36.

(7) Towing.

(A) If rent, charges, fees, or expenses remain unpaid after 51 days, an owner may have a vehicle, vessel, snowmobile, trailer, or all-terrain vehicle towed away by a towing company.

(B) Not later than five days after having personal property towed pursuant to this subdivision (7), an owner shall notify the occupant by regular mail or electronic mail at the occupant’s last known address and shall include the name, address, and telephone number of the towing company.

(C) An owner has no liability to any person for having property towed or for damage to the property after the towing company takes possession of the property.

(8) Right of satisfaction.

(A) Before a sale of personal property pursuant to this chapter, the occupant may redeem the property by paying the amount necessary to satisfy the lien and the reasonable expenses incurred under this section.

(B) Upon receipt of payment, the owner shall return the personal property and thereafter is not liable to any person with respect to the personal property.

(9) Proceeds in excess of lien amount.

(A) An owner that sells property pursuant to this section:

(i) may satisfy the owner’s lien from the proceeds of the sale; and

(ii) shall hold the balance, if any, for delivery on demand to the occupant.

(B) If the occupant does not claim the balance of the proceeds, the owner shall deliver the balance without interest to the Treasurer of the State of Vermont in accordance with 27 V.S.A. chapter 14.

(10) Rights of other lienholders. The holder of any perfected lien or security interest on personal property stored in the storage unit and registered with the Vermont Secretary of State may take possession of its liened property at any time prior to sale or other disposition.

(11) Rights of purchasers. A purchaser in good faith of the personal property sold to satisfy a lien takes the property free of any rights of persons against whom the lien was valid, despite noncompliance by the owner with the requirements of this chapter.

(12) Disposal of personal property. If an owner complies with the requirements of this section and a qualified buyer does not purchase the property offered for sale, the owner may dispose of the property without liability.

(13) Liability. An owner that has complied with the applicable provisions of this chapter is not liable to an occupant, lienholder, or any other person.

(Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009; amended 2021, No. 168 (Adj. Sess.), § 1, eff. July 1, 2022.)

§ 3906 Scope; supplemental nature of chapter

(a) If an owner issues a warehouse receipt, bill of lading, or other document of title for the personal property stored in a self-storage facility, the owner and the occupant are subject to Title 9A and this chapter does not apply.

(b) Nothing in this chapter shall be construed in any manner to impair or affect the right of parties to create liens by special contract or agreement, nor shall it in any manner affect or impair other liens arising at common law or in equity, or by any statute in this State.

(Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009; amended 2021, No. 168 (Adj. Sess.), § 1, eff. July 1, 2022.)

§ 3907 Savings clause

This chapter shall only apply to self-storage rental agreements entered into, extended, or renewed after January 1, 2009. Rental agreements providing for monthly rental payments but providing no specific termination date shall be subject to this chapter on the first monthly rental payment date following January 1, 2009.

(Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009.)

§ 3908 Severability

If any provision of this chapter or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end, the provisions of this chapter are declared to be severable.

(Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009.)

Chapter 99 Portable Sawmills

§§ 3921-3926 Repealed

[Repealed]

1977, No. 253 (Adj. Sess.), § 7; 1979, No. 3, retroactive to July 1, 1978.

Chapter 101 Wagering Contracts

§ 3981 Loser may recover loss

A person who pays money or other valuable thing lost at a game or sport or horse race may recover the value thereof of the person to whom it was paid in a civil action, if commenced within one month from the time of payment.

§ 3982 Void contracts

Contracts, promises, notes, bills, bonds, judgments, and other assurances, and mortgages, conveyances, or securities made and executed by a person in which any part of the consideration is for money or other valuable thing won on any of the aforesaid games, or borrowed or lent for such purpose at the time and place of gaming, shall be null and void.

Chapter 102 Construction Contracts

§ 4001 Definitions

As used in this chapter:

(1) “Contractor” means a person or entity that contracts with an owner to perform work, or provide materials or machinery necessary to perform work on real property.

(2) “Work” means to build, alter, repair, or demolish any improvement on, connected with, or on or beneath the surface of any real property, or to excavate, clear, grade, fill, or landscape any real property or to construct driveways, private roadways, highways and bridges, drilled wells, septic, sewage systems, utilities, including trees and shrubbery, or to furnish materials, for any of such purposes, or to perform any labor upon real property. “Work” also includes any design or other professional or skilled services rendered by architects, engineers, land surveyors, landscape architects, and construction managers.

(3) “Owner” means a person or entity having an interest in real property on which work is performed, if the person or entity has agreed to or requested such work. “Owner” includes successors in interest of the owner and agents of the owner acting within their authority. “Owner” shall also include the State of Vermont and instrumentalities and subdivisions of the State of Vermont including municipalities and school districts having an interest in such real property.

(4) “Real property” means real estate, including lands, leaseholds, tenements and hereditaments, and improvements placed thereon.

(5) “Construction contract” means any agreement, whether written or oral, to perform work on any real property located within the State of Vermont.

(6) “Subcontractor” means any person or entity that has contracted to perform work, or provide materials or machinery necessary to perform work for a contractor or another subcontractor in connection with a construction contract.

(7) “Delivery” means receipt by addressee, including first-class, registered, or certified mail, hand delivered or transmitted by facsimile machine. Mail, properly addressed, shall be deemed delivered three days from the day it was sent.

(8) “Billing period” means the period agreed to by the parties or, in the absence of an agreement, the calendar month within which work is performed.

(Added 1991, No. 74, § 1 eff. Jan. 1, 1992; amended 1993, No. 146 (Adj. Sess.), § 1.)

§ 4002 Owner’s payment obligations

(a) The owner shall pay the contractor strictly in accordance with the terms of the construction contract.

(b) In the event that the construction contract does not contain a term governing the terms of payment, the contractor shall be entitled to invoice the owner for progress payments at the end of the billing period. The contractor shall be entitled to submit a final invoice for payment in full upon completion of the agreed-upon work.

(c) Except as otherwise agreed, payment of interim and final invoices shall be due from the owner 20 days after end of billing period or 20 days after delivery of invoice, whichever is later.

(d) Except as otherwise agreed, if any progress or final payment to a contractor is delayed beyond the due date established in subsection (c) of this section, the owner shall pay the contractor interest, beginning on the 21st day, at an interest rate equal to that established by 12 V.S.A. § 2903(b), on such unpaid balance as may be due.

(Added 1991, No. 74, § 1, eff. Jan. 1, 1992.)

§ 4003 Contractor’s and subcontractor’s payment obligations

(a) Performance by a subcontractor in accordance with the provisions of its contract shall entitle it to payment from the party with which it contracts.

(b) Notwithstanding any contrary agreement, a contractor or subcontractor shall disclose to a subcontractor, before a subcontract is entered, the due date for receipt of payments from the owner. Notwithstanding any other provision of this chapter, if a contractor or subcontractor fails to accurately disclose the due date to a subcontractor, the contractor or subcontractor shall be obligated to pay the subcontractor as though the 20-day due dates in subsection 4002(c) of this title were met by the owner.

(c) Notwithstanding any contrary agreement, when a subcontractor has performed in accordance with the provisions of its contract, a contractor shall pay to the subcontractor, and each subcontractor shall in turn pay to its subcontractors, the full or proportional amount received for each such subcontractor’s work and materials based on work completed or service provided under the subcontract, seven days after receipt of each progress or final payment or seven days after receipt of the subcontractor’s invoice, whichever is later.

(d) Notwithstanding any contrary agreement, if any progress or final payment to a subcontractor is delayed beyond the due date established in subsections (b) or (c) of this section, the contractor or subcontractor shall pay its subcontractor interest, beginning on the next day, at an interest rate equal to that established by 12 V.S.A. § 2903(b), on such unpaid balance as may be due.

(Added 1991, No. 74, § 1, eff. Jan. 1, 1992.)

§ 4004 Errors in documentation

If an invoice is filled out incorrectly, or incompletely, or if there is any defect or impropriety in an invoice submitted, the receiving owner, contractor, or subcontractor shall contact the invoicing contractor or subcontractor in writing within ten working days of receiving the invoice. Otherwise, documentary errors shall be deemed waived. If an error on the invoice is corrected by the invoicing contractor or subcontractor, the date on which the corrected invoice is delivered shall be deemed the end of the billing period for the purposes of this chapter.

(Added 1991, 74, § 1, eff. Jan. 1, 1992.)

§ 4005 Retainage

(a) If payments under a construction contract are subject to retainage, any amounts that have been retained during the performance of the contract and that are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work.

(b) If an owner is not withholding retainage, a contractor or subcontractor may withhold retainage from its subcontractor in accordance with their agreement. The retainage shall be paid within 30 days after final acceptance of the work.

(c) Notwithstanding any contrary agreement, a contractor shall pay to its subcontractors, and each subcontractor shall in turn pay to its subcontractors, within seven days after receipt of the retainage, the full amount due to each such subcontractor.

(d) If an owner, contractor, or subcontractor unreasonably withholds acceptance of the work or fails to pay retainage as required by this section, the owner, contractor, or subcontractor shall be subject to the interest, penalty, and attorney’s fees provisions of sections 4002, 4003, and 4007 of this title.

(e) Notwithstanding any provision of this section or an agreement to the contrary, except in the case of a contractor or subcontractor who is both a materialman who delivers materials and is contracted to perform work using those materials, a contractor or subcontractor shall not hold retainage for contracted materials that:

(1) have been delivered by a materialman and accepted by the contractor at the site or off site; and

(2) are covered by a manufacturer’s warranty or graded to meet industry standards, or both.

(Added 1991, No. 74, § 1, eff. Jan. 1, 1992; amended 2017, No. 179 (Adj. Sess.), § 3.)

§ 4005a Fund held in trust; commingling; no effect on title to real property

(a) As used in this section:

(1) “Claim” means any valid claim for materials furnished or services rendered in the construction, repair, remodeling, improvement, or renovation of any building or structure for which the claimant has a lien or the right to claim a lien.

(2) “Express trust” means funds that have been paid by an owner, for or in connection with services, labor, or materials used in an improvement of real property, which are to be held by a contractor or subcontractor, in express trust, for those services, labor, or materials. Any such contractor or subcontractor who accepts money from any owner or contractor shall become the trustee of the express trust that is created pursuant to this section. The amounts received by such contractor or subcontractor under or in connection with each building project shall be a separate trust and the contractor or subcontractor, or any successor or assign or both of such contractor or subcontractor that hold such trust funds, shall be a trustee thereof. These funds are not required to be held in any separate account by a contractor or subcontractor. Such trust shall be effective against and shall have priority over any unsecured interest of a party seeking payment from such contractor or subcontractor for claims other than those that are due and owing by reason of the specific building project for which the trust was created, whether such creditors are foreign attachment or other judicial lien creditors, a trustee in bankruptcy, or similar creditors or representatives or creditors of the contractor or subcontractor.

(b) Funds held in express trust are not required to be held in any separate account by a contractor or subcontractor.

(d) The amount payable to any contractor or subcontractor under any contract for the construction, repair, remodeling, improvement, or renovation of any building or structure shall, upon receipt by such contractor or subcontractor, be held in express trust by such contractor or subcontractor for the payment of all claims that are due and owing, or to become due and owing, by such contractor or subcontractor by reason of such construction, repair, remodeling, improvement, or renovation.

(e) Any amount required to be held in express trust under this section shall be applied to the payment of the corresponding claims specified in this section.

(f) Nothing in this section shall be construed to create a lien on real property. The existence of an express trust under this section shall not prohibit the filing or enforcement of a lien against the affected real property pursuant to chapter 51 of this title by any claimant. A priority lien of a secured lender shall not be subordinate to an express trust.

(g) In the case of an express trust that is not held by a corporation, limited liability partnership, or limited liability company, liability for sums due under this section shall only attach to the principal or head of the company which holds the funds under the express trust.

(Added 2007, No. 211 (Adj. Sess.), § 2; amended 2021, No. 20, § 34.)

§ 4006 Prepayment; advance payment

This chapter shall in no way be construed to prohibit an owner, contractor, or subcontractor from making advance payments, progress payments, or from prepaying if agreements or other circumstances make such payments appropriate. All such payments shall be made promptly and shall be subject to the interest, penalties, and other provisions hereof when payment is later.

(Added 1991, No. 74, § 1, eff. Jan. 1, 1992.)

§ 4007 Disputes; penalties; attorney’s fees

(a) Nothing in this chapter shall prevent an owner, contractor, or subcontractor from withholding payment in whole or in part under a construction contract in an amount equalling the value of any good faith claims against an invoicing contractor or subcontractor, including claims arising from unsatisfactory job progress, defective construction, disputed work, or third-party claims.

(b) If arbitration or litigation is commenced to recover payment due under the terms of this chapter and it is determined that an owner, contractor, or subcontractor has failed to comply with the payment terms of this chapter, the arbitrator or court shall award, in addition to all other damages due and as a penalty, an amount equal to one percent per month of all sums as to which payment has wrongfully been withheld. An amount shall not be deemed to have been wrongfully withheld to the extent it bears a reasonable relation to the value of any claim held in good faith by the owner, contractor, or subcontractor against which an invoicing contractor, or subcontractor is seeking to recover payment.

(c) Notwithstanding any contrary agreement, the substantially prevailing party in any proceeding to recover any payment within the scope of this chapter shall be awarded reasonable attorney’s fees in an amount to be determined by the court or arbitrator, together with expenses.

(Added 1991, No. 74, § 1, eff. Jan. 1, 1992.)

§ 4008 Contracts involving federal aid

Notwithstanding any provision of this chapter, language varying the requirements of this chapter may be included in contracts when such variance is required by any statute, regulation, or grant agreement conditioning the receipt or expenditure of federal aid.

(Added 1991, No. 74, § 1, eff. Jan. 1, 1992.)

§ 4009 Owner exclusion

This chapter shall not apply to contracts for the purchase of materials by a natural person performing work on his or her own real property.

(Added 1991, No. 74, § 1, eff. Jan. 1, 1992.)

Chapter 103 Trading Stamps

§ 4021 Definitions

As used in this chapter:

(1) “Person” refers to any individual, partnership, corporation, association, or other organization.

(2) “Trading stamp” refers to any stamp or similar device issued in connection with the retail sale of merchandise or service, as a cash discount or for any other marketing purpose, that entitles the rightful holder, on its due presentation for redemption, to receive merchandise, service, or cash. This term, however, shall not mean any redeemable device used by the manufacturer or packer of an article in advertising or selling it.

(3) “Trading stamp company” refers to any person engaged in distributing trading stamps for retail issuance by others, or in redeeming trading stamps for retailers, in any way or under any guise.

(Added 1959, No. 240, § 1, eff. Sept. 1, 1959.)

§ 4022 Fraud prohibited

A trading stamp company shall not willfully commit any fraud or make any false representation or resort to any lottery in distributing or redeeming trading stamps in this State.

(Added 1959, No. 240, § 2, eff. Sept. 1, 1959.)

§ 4023 Distribution, limitations

A trading stamp company shall not issue or distribute trading stamps in this State after this chapter takes effect unless (1) each stamp has legibly printed upon its face in cents or any fraction thereof a cash value determined by the company, and (2) the rightful holders may, at their option, redeem the stamps in cash when duly presented to the company for redemption in a number having an aggregate cash value of not less than $0.25.

(Added 1959, No. 240, § 3, eff. Sept. 1, 1959.)

§ 4024 Registration; bond

(a) A trading stamp company shall not issue or distribute trading stamps in this State after September 1, 1959 until it has filed simultaneously with the Secretary of State on forms specified by him or her:

(1) A statement of registration accompanied by representative samples of its stamps, stamp collection books, stamp redemption catalogues, and stamp distribution and redemption agreement forms currently used or proposed to be used in this State. Each statement shall provide the following information:

(A) the name and principal address of the company;

(B) the state of its incorporation or origin;

(D) the address of its principal office in this State where the stamps shall be redeemable in cash;

(E) the name and address of its principal officer, employee, or agent in this State;

(F) the addresses of the places where its stamps are redeemable in cash in this State in addition to its principal office in this State;

(G) a short form of its balance sheet, as at the end of its last fiscal year before the filing, certified by an independent or certified public accountant;

(H) unless the principal sum of the bond required by this chapter to be filed by the company is the maximum amount required by this chapter, a statement of its gross income from its business in this State as a trading stamp company during the last fiscal year, certified by an independent or certified public accountant; and

(I) the date when the company first began doing business in this State.

(2) A bond payable to this State and duly executed by the company and a corporate surety qualified to do business in the State, which is conditioned upon the performance by the company of its obligation to redeem in merchandise, service, or cash, at the option of the rightful holder, trading stamps issued by retailers in this State, when they are duly presented for redemption by the rightful holders.

(b) The principal sum of the bond shall be as follows: If the company has not previously done business as a trading stamp company in this State, or if the company’s gross income from the business in this State during its last fiscal year was not in excess of $250,000.00, $25,000.00; if the gross income exceeded $250,000.00 but was not in excess of $500,000.00, $50,000.00; if the gross income exceeded $500,000.00 but was not in excess of $750,000.00, $75,000.00; and if the gross income exceeded $750,000.00, $100,000.00.

(c) The statement of registration and the bond shall be filed with the Secretary of State on or before September 1, 1959 and annually thereafter on or before July 1 of each year. The trading stamp company shall pay a registration fee of $250.00 to the Secretary of State at the time of filing each registration statement. The bond shall be effective for the registration year next following, unless the company gives notice of its intention to cease the distribution and redemption of trading stamps in this State.

(d) On the effective date of each new bond, any and all liability on all bonds previously filed under this chapter shall end and all rightful holders of trading stamps who prosecute their claims under this chapter shall prosecute the claims solely against the new bond and only by filing proofs of claim with a court of record in the manner provided in this chapter.

(Added 1959, No. 240, § 4, eff. Sept. 1, 1959.)

§ 4025 Claims, enforcement

(a) In the event the company defaults in performing its obligations under this chapter, all rightful holders of trading stamps of the company shall be entitled to make claim against the bond filed under subdivision 4024(a)(2) of this title. Retailers in possession of trading stamps for issuance to their customers shall also be deemed rightful holders entitled to make a claim.

(b) If the company defaults in the performance of its obligation to redeem trading stamps, any rightful holder may file, within three months after the default, a complaint in the Washington Superior Court. Upon the filing of a complaint, the presiding judge shall, upon 14 days’ notice in writing sent by certified mail to the company, summarily hear and forthwith make a determination whether there has been a default. If the presiding judge determines that there has been a default, he or she shall give notice of the determination to the company and if the default is not corrected within 14 days, he or she shall order the clerk of the court to publish notice of the default in three consecutive publications of one or more newspapers having general circulation throughout this State and therein require that proof of all claims for redemption of the trading stamps of the company shall be filed with the court, together with the trading stamps upon which the claim is based, within three months after the date of the first publication. Promptly after the expiration of that period, the court shall determine the validity of all claims so filed. Thereupon, the court shall be paid by the surety such amount as shall be necessary to satisfy all valid claims so filed, not exceeding, however, the principal sum of the bond. Upon the failure to pay the amount demanded, the court shall notify the Attorney General who shall bring an action in a court of record, to recover the amount demanded. Upon payment or recovery of the amount demanded, the clerk of the court shall promptly thereafter make an equitable distribution of the proceeds of the bond to the claimants and shall promptly destroy the trading stamps so surrendered.

(Added 1959, No. 240, § 5, eff. Sept. 1, 1959; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2017, No. 11, § 9.)

§ 4026 Notice of cessation of redemption

A trading stamp company shall not cease or suspend the redemption of trading stamps in cash in this State without filing with the Secretary of State, at least 90 days before the suspension, written notice of its intention so to do and concurrently mailing a copy of the notice to each retailer within this State that has, at any time theretofore within one year, issued trading stamps which the company is obligated to redeem.

(Added 1959, No. 240, § 6, eff. Sept. 1, 1959.)

§ 4027 Penalty

Any trading stamp company that violates any provision of this chapter shall be fined not more than $1,000.00 or imprisoned for not more than one year, or both, and the Superior Court shall have jurisdiction on the complaint of any interested person to restrain and enjoin the violation of any of those provisions.

(Added 1959, No. 240, § 7, eff. Sept. 1, 1959; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)

Chapter 105 Credit Cards

§ 4041 Definitions

As used in this chapter:

(1) “Person” includes a natural person, a firm, an association, and a corporation, and any officer, employee, or agent thereof.

(2) “Cardholder” means any person to whom a credit card is issued and any person who has agreed with the card issuer to pay obligations arising from the issuance of a credit card to another person.

(3) “Card issuer” means any person who issues a credit card.

(4) “Credit card” means any instrument, whether known as credit card, credit plate, charge plate, or any other name, that purports to evidence an undertaking to pay for property, labor, services, or delinquent taxes paid, delivered, or rendered to or upon the order of persons designated or otherwise authorized as bearers of such card, and includes bank credit cards as defined in 8 V.S.A.§ 1301(b).

(5) “Accepted credit card” means any credit card that the cardholder has signed or has used, or authorized another to use, for the purpose of obtaining money, property, labor, services, or payment of delinquent taxes on credit, and also the term includes a credit card issued in replacement or renewal of an accepted credit card.

(6) “Unauthorized use” means a use of a credit card to obtain money, property, labor, services, or payment of delinquent taxes by a person other than the cardholder who does not have actual, implied, or apparent authority for such use.

(7) “Notice of loss instructions” shall be a separate slip or card, or a provision clearly printed in bold type in a cardholder agreement or accompanying material that shall apprise cardholder of the potential liability for unauthorized use, shall designate the address and telephone number of an office or offices of issuer to which adequate notice of loss may be given, and that shall contain a blank space for the cardholder to insert his or her account number, which space shall be identified to invite such insertion.

(8) “Adequate notice of loss” shall be an actual notice of loss or theft or of unauthorized use of the card to a designated office of issuer that may be by mail, telephone, telegraph, or in person.

(Added 1969, No. 221 (Adj. Sess.), § 1; amended 1987, No. 278 (Adj. Sess.), § 12, eff. June 21, 1988; 2021, No. 20, § 35.)

§ 4042 Liability for unauthorized use

A provision imposing liability on a cardholder for the unauthorized use of a credit card shall be effective only if the card is an accepted credit card, the liability imposed is not in excess of $100.00, the cardholder has received notice of loss instructions from issuer, and the unauthorized use occurs before the cardholder has given adequate notice of loss to issuer.

(Added 1969, No. 221 (Adj. Sess.), § 2.)

§ 4043 Fraudulent use

A person shall not with intent to defraud, obtain, or attempt to obtain money, property, services, or any other thing of value, by the use of a credit card that he or she knows, or reasonably shall have known, to have been stolen, forged, revoked, cancelled, unauthorized, or invalid for use by him or her for such purpose.

(Added 1969, No. 221 (Adj. Sess.), § 3.)

§ 4044 Penalty

(a) A person who violates section 4043 of this title shall be fined not more than $500.00 or be imprisoned not more than six months, or both, if the aggregate value of the money, property, services, or other things of value so obtained is $50.00 or less.

(b) A person who violates section 4043 of this title shall be fined not more than $1,000.00 or be imprisoned not more than one year, or both, if the aggregate value of the money, property, services, or other things of value so obtained exceeds $50.00.

(Added 1969, No. 221 (Adj. Sess.), § 4; amended 1971, No. 199 (Adj. Sess.), § 17.)

§ 4045 Illegal possession; seizure

(a) A person in possession of a credit card issued to another with the intent to use the credit card without the consent of the cardholder shall be fined not more than $500.00 or imprisoned not more than six months, or both.

(b) A law enforcement officer who finds a credit card in the possession of a person other than the cardholder shall seize the same unless it is affirmatively made to appear that an unauthorized use of said card is not intended. A card seized under such circumstances shall be returned to the card issuer at such time as it may not be needed as material or relevant evidence for prosecution.

(Added 1969, No. 221 (Adj. Sess.), § 5.)

Chapter 107 Equipment and Machinery Dealerships

§ 4071 Definitions

As used in this chapter:

(1) “Current net price” means the price listed in the supplier’s price list or catalogue in effect at the time the dealer agreement is terminated, less any applicable discounts allowed.

(2)(A) “Dealer” means a person primarily engaged in the business of retail sales of inventory.

(B) “Dealer” does not include a “single line dealer,” a person primarily engaged in the retail sale and service of industrial, forestry, and construction equipment, who:

(i) has purchased 75 percent or more of his or her new inventory from a single supplier; and

(ii) has a total annual average sales volume for the previous three years in excess of $100 million for the entire territory for which the dealer is responsible.

(3) “Dealer agreement” means a written or oral agreement between a dealer and a supplier by which the supplier gives the dealer the right to sell or distribute goods or services or to use a trade name, trademark, service mark, logotype, or advertising or other commercial symbol.

(4)(A) “Inventory” means:

(i) farm, utility, forestry, yard and garden, or industrial:

(I) tractors;

(II) equipment;

(III) implements;

(IV) machinery;

(V) attachments;

(VI) accessories; and

(VII) repair parts;

(ii) snowmobiles, as defined in 23 V.S.A. § 3201(5), and snowmobile implements, attachments, garments, accessories, and repair parts; and

(iii) all-terrain vehicles, as defined in 23 V.S.A. § 3801(1), and all-terrain vehicle implements, attachments, garments, accessories, and repair parts.

(B) “Inventory” does not include heavy construction equipment.

(5) “Net cost” means the price the dealer paid the supplier for the inventory, less all applicable discounts allowed, plus the amount the dealer paid for freight costs from the supplier’s location to the dealer’s location. In the event of termination of a dealer agreement by the supplier, “net cost” shall include the reasonable cost of assembly or disassembly performed by a dealer.

(6) “Supplier” means a wholesaler, manufacturer, or distributor of inventory who enters into a dealer agreement with a dealer.

(7) “Termination” of a dealer agreement means the cancellation, nonrenewal, or noncontinuance of the agreement.

(Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994; amended 2015, No. 142 (Adj. Sess.), § 2.)

§ 4072 Termination of dealer agreement

(a) Requirements for notice.

(1) A person shall provide a notice required in this section by certified mail or by personal delivery.

(2) A notice shall be in writing and shall include:

(A) a statement of intent to terminate the dealer agreement;

(B) a statement of the reasons for the termination, including specific reference to one or more requirements of the dealer agreement that serve as the basis for termination, if applicable; and

(b) Termination by a supplier for cause.

(1) In this subsection, “cause” means the failure of a dealer to meet one or more requirements of a dealer agreement, provided that the requirement is reasonable, justifiable, and substantially the same as requirements imposed on similarly situated dealers in this State.

(2) A supplier shall not terminate a dealer agreement except for cause.

(3) To terminate a dealer agreement for cause, a supplier shall deliver a notice of termination to the dealer at least 120 days before the effective date of termination.

(4) A dealer has 60 days from the date it receives a notice of termination to meet the requirements of the dealer agreement specified in the notice.

(5) If a dealer meets the requirements of the dealer agreement specified in the notice within the 60-day period, the dealer agreement does not terminate pursuant to the notice of termination.

(1) Notwithstanding subsection (b) of this section, a supplier shall not terminate a dealer agreement for failure to meet reasonable marketing or market penetration requirements except as provided in this subsection.

(2) A supplier shall deliver an initial notice of termination to the dealer at least 24 months before the effective date of termination.

(3) After providing an initial notice, the supplier shall work with the dealer in good faith to meet the reasonable marketing or market penetration requirements specified in the notice, including reasonable efforts to provide the dealer with adequate inventory and marketing programs that are substantially the same as those provided to dealers in this State or region, whichever is more appropriate under the circumstances.

(4) If the dealer fails to meet reasonable marketing or market penetration requirements specified in the notice by the end of the 24-month period, the supplier may terminate the dealer agreement by providing a final notice of termination not less than 90 days prior to the effective date of the termination.

(5) If a dealer meets the reasonable marketing or market penetration requirements within the 24-month period, the dealer agreement shall not terminate.

(d) Termination by a supplier upon a specified event. Notwithstanding subsection (b) of this section, a supplier may terminate immediately a dealer agreement if one of the following events occurs:

(1) A person files a petition for bankruptcy or for receivership on behalf of or against the dealer.

(2) The dealer makes an intentional and material misrepresentation regarding his or her financial status.

(3) The dealer defaults on a chattel mortgage or other security agreement between the dealer and the supplier.

(4) A person commences the voluntary or involuntary dissolution or liquidation of a dealer organized as a business entity.

(5) Without the prior written consent of the supplier:

(A) The dealer changes the business location specified in the dealer agreement or adds an additional dealership of the supplier’s same brand.

(B) An individual proprietor, partner, or major shareholder withdraws from, or substantially reduces his or her interest in, the dealer.

(6) The dealer fails to operate in the normal course of business for eight consecutive business days, unless the failure to operate is caused by an emergency or other circumstances beyond the dealer’s control.

(7) The dealer abandons the business.

(8) The dealer pleads guilty to or is convicted of a felony that is substantially related to the qualifications, function, or duties of the dealer.

(e) Termination by a dealer. Unless a provision of a dealer agreement provides otherwise, a dealer may terminate the dealer agreement by providing a notice of termination to the supplier at least 120 days before the effective date of termination.

(Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994; amended 2015, No. 142 (Adj. Sess.), § 2.)

§ 4073 Supplier’s duty to repurchase inventory

(a) Whenever a dealer enters into a dealer agreement under which the dealer agrees to maintain an inventory, and the agreement is terminated by either party as provided in this chapter, the supplier, upon written request of the dealer filed within 30 days of the effective date of the termination, shall repurchase the dealer’s inventory as provided in this chapter. There shall be no requirement for the supplier to repurchase inventory pursuant to this section if:

(1) the dealer has made an intentional and material misrepresentation as to the dealer’s financial status;

(2) the dealer has defaulted under a chattel mortgage or other security agreement between the dealer and supplier; or

(3) the dealer has filed a voluntary petition in bankruptcy.

(b) Whenever a dealer enters into a dealer agreement in which the dealer agrees to maintain an inventory and the dealer or the majority stockholder of the dealer, if the dealer is a corporation, dies, or becomes incompetent, the supplier shall, at the option of the heir, personal representative, or guardian of the dealer or the person who succeeds to the stock of the majority stockholder, repurchase the inventory as if the agreement had been terminated. The heir, personal representative, guardian, or succeeding stockholder has 180 days from the date of the death of the dealer or majority stockholder to exercise the option under this chapter.

(Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994.)

§ 4074 Repurchase terms

(a)(1) Within 90 days from receipt of the written request of the dealer, a supplier under the duty to repurchase inventory pursuant to section 4073 of this title may examine any books or records of the dealer to verify the eligibility of any item for repurchase.

(2) Except as otherwise provided in this chapter, the supplier shall repurchase from the dealer the following items that the dealer previously purchased from the supplier, or other qualified vendor approved by the supplier, that are in the possession of the dealer on the date of termination of the dealer agreement:

(A) inventory; and

(B) required signage, special tools, books, manuals, supplies, data processing equipment, and software.

(b) The supplier shall pay the dealer:

(1) 100 percent of the net cost of all new, undamaged, and complete inventory, other than repair parts, purchased from the supplier within the 30-month period preceding the date of termination, less a reasonable allowance for deterioration attributable to weather exposure at the dealer’s location.

(2) 100 percent of the current net prices of all new and undamaged repair parts.

(3) 95 percent of the current net prices of all new and undamaged superseded repair parts.

(4) 95 percent of the latest available published net price of all new and undamaged noncurrent repair parts.

(5) Either the fair market value, or the supplier shall assume the lease responsibilities of, any specific data processing hardware that the supplier required the dealer to purchase to satisfy the reasonable requirements of the dealer agreement, including computer systems equipment and software required and approved by the supplier to communicate with the supplier.

(6) 75 percent of the net cost of specialized repair tools, signage, books, and supplies previously purchased, pursuant to requirements of the supplier and held by the dealer on the date of termination.

(7) Average as-is value shown in current industry guides for dealer-owned rental fleet financed by the supplier or its finance subsidiary, provided the equipment was purchased from the supplier within 30 months of the date of termination.

(c) The party that initiates the termination of the dealer agreement shall pay the cost of the return, handling, packing, and loading of the inventory. If the termination is initiated by the supplier, the supplier shall reimburse the dealer five percent of the net parts return credited to the dealer as compensation for picking, handling, packing, and shipping the parts returned to the supplier.

(d) Payment to the dealer required under this section shall be made by the supplier not later than 45 days after receipt of the inventory by the supplier. A penalty shall be assessed in the amount of daily interest at the current New York prime rate plus three percent of any outstanding balance over the required 45 days. The supplier shall be entitled to apply any payment required under this section to be made to the dealer as a setoff against any amount owed by the dealer to the supplier.

(Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994; amended 2015, No. 142 (Adj. Sess.), § 2.)

§ 4075 Exceptions to repurchase requirement

The provisions of this chapter shall not require a supplier to repurchase from a dealer:

(1) a repair part with a limited storage life or otherwise subject to physical or structural deterioration, including gaskets or batteries;

(2) a single repair part normally priced and sold in a set of two or more items;

(3) a repair part that, because of its condition, cannot be marketed as a new part without repackaging or reconditioning by the supplier or manufacturer;

(4) any inventory that the dealer elects to retain;

(5) any inventory ordered by the dealer after receipt of notice of termination of the dealer agreement by either the dealer or supplier;

(6) any inventory that was acquired by the dealer from a source other than the supplier, unless the source was approved by the supplier;

(7) a specialized repair tool that is not unique to the supplier’s product line, or that is over 10 years old, incomplete, or in unusable condition;

(8) a part identified by the supplier as nonreturnable at the time of the dealer’s order; or

(9) supplies that are not unique to the supplier’s product line, or that are over three years old, incomplete, or in unusable condition.

(Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994; amended 2015, No. 142 (Adj. Sess.), § 2.)

§ 4076 Transfer of business

(a) No supplier shall unreasonably withhold consent to the transfer of the interest of any dealer, officer, member, or partner to any other party or parties. However, no dealer, officer, member, or partner shall have the right to sell, transfer, or assign the equipment dealership or power of management or control of the dealership without the written consent of the supplier. Should a supplier determine that the designated transferee does not meet its reasonable business ability, business experience, character standards, and capitalization requirements, the supplier shall provide the dealer with written notice of the supplier’s objection and specific reasons for withholding consent. A supplier shall have 90 days to consider a dealer’s written request to make such a transfer.

(b) No supplier shall unreasonably withhold consent to the transfer of the dealer’s interest in the dealership to a member or members of the family of the dealer or the principal owner of the dealership, if the family member meets the reasonable business ability, business experience, and character standards of the supplier, and if the transferee can demonstrate that the dealership will be adequately capitalized. Should a supplier determine that the designated family member does not meet those requirements, the supplier shall provide the dealer with written notice of the supplier’s objection and specific reasons for withholding its consent. A supplier shall have 90 days to consider a dealer’s written request to make a transfer to a family member. As used in this subsection, “family” means and includes the spouse, parent, siblings, children, stepchildren, and lineal descendants, including those by adoption of the dealer or principal owner of the dealer.

(c) Notwithstanding subsection (b) of this section, in the event that a supplier and dealer have duly executed an agreement concerning succession rights prior to the equipment dealer’s death, and if the agreement has not been revoked or otherwise terminated by either party, the agreement shall be observed.

(d) In any dispute arising under this section, the supplier shall have the burden of proving a substantial and reasonable justification for the denial of consent.

(Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994.)

§ 4077 Uniform commercial practice

Nothing contained in this chapter may be construed to release or terminate a perfected security interest of the supplier in the inventory of the dealer.

(Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994; amended 2001, No. 86 (Adj. Sess.), § 1, eff. May 2, 2002.)

§ 4077a Prohibited acts

(a)(1) A supplier shall not coerce or attempt to coerce a dealer to accept delivery of inventory that the dealer has not voluntarily ordered.

(2) A supplier may require a dealer to accept delivery of inventory that is:

(A) necessary to maintain inventory in a quantity, and of the model range, generally sold in the dealer’s geographic area of responsibility; or

(B) safety-related and pertinent to inventory generally sold in the dealer’s geographic area of responsibility.

(b) A supplier shall not condition the sale of inventory on a requirement that the dealer also purchase any other goods or services, provided that a supplier may require a dealer to purchase parts reasonably necessary to maintain inventory used in the dealer’s geographic area of responsibility.

(c)(1) A supplier shall not prevent, coerce, or attempt to coerce a dealer from investing in, or entering into an agreement for the sale of, a competing product line or make of inventory.

(2) A supplier shall not require, coerce, or attempt to coerce a dealer to provide a separate facility or personnel for a competing product line or make of inventory.

(3) Subdivisions (1)-(2) of this subsection do not apply unless a dealer:

(A) maintains a reasonable line of credit for each product line or make of inventory;

(B) maintains the principal management of the dealer; and

(C) remains in substantial compliance with the supplier’s reasonable facility requirements, which shall not include a requirement to provide a separate facility or personnel for a competing product line or make of inventory.

(d) A supplier shall not discriminate in the prices it charges for inventory of like grade and quality it sells to similarly situated dealers, provided that a supplier may use differentials that allow for a difference in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which the supplier sells or delivers the inventory.

(e) A supplier shall not change the geographic area of responsibility specified in a dealer agreement without good cause, which for purposes of this subsection includes the dealer’s market penetration within the assigned geographic area of responsibility and changes in the inventory warranty registration pattern in the area surrounding the dealer’s geographic area of responsibility.

(Added 2001, No. 86 (Adj. Sess.), § 2, eff. May 2, 2002; amended 2015, No. 142 (Adj. Sess.), § 2.)

§ 4078 Warranty obligations

(a) A supplier shall:

(1) specify in writing a dealer’s reasonable obligation to perform warranty service on the supplier’s inventory;

(2) provide the dealer a schedule of reasonable compensation for warranty service, including amounts for diagnostic work, parts, labor, and the time allowance for the performance of warranty service; and

(3) compensate the dealer pursuant to the schedule of compensation for the warranty service the supplier requires it to perform.

(b) Time allowances for the diagnosis and performance of warranty service shall be reasonable and adequate for the service to be performed by a dealer that is equipped to complete the requirements of the warranty service.

(c) The hourly rate paid to a dealer shall not be less than the rate the dealer charges to customers for nonwarranty service.

(d) A supplier shall compensate a dealer for parts used to fulfill warranty and recall obligations at a rate not less than the price the dealer actually paid the supplier for the parts plus 20 percent, plus freight and handling if charged by the supplier.

(e) The wholesale price on which a dealer’s markup reimbursement is based for any parts used in a recall or campaign shall not be less than the highest wholesale price listed in the supplier’s wholesale price catalogue within six months prior to the start of the recall or campaign.

(f)(1) Whenever a supplier and a dealer enter into an agreement providing consumer warranties, the supplier shall pay any warranty claim made for warranty parts and service within 30 days after its receipt and approval.

(2) The supplier shall approve or disapprove a warranty claim within 30 days after its receipt.

(3) If a claim is not specifically disapproved in writing within 30 days after its receipt, it shall be deemed to be approved and payment shall be made by the supplier within 30 days after its receipt.

(g) A supplier violates this section if it:

(1) fails to perform its warranty obligations;

(2) fails to include in written notices of factory recalls to machinery owners and dealers the expected date by which necessary parts and equipment will be available to dealers for the correction of such defects; or

(3) fails to compensate a dealer for repairs required by a recall.

(h) A supplier shall not:

(1) impose an unreasonable requirement in the process a dealer must follow to file a warranty claim; or

(2) impose a surcharge or fee to recover the additional costs the supplier incurs from complying with the provisions of this section.

(Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994; amended 2015, No. 142 (Adj. Sess.), § 2.)

§ 4079 Remedies

(a) A person damaged as a result of a violation of this chapter may bring an action against the violator in a Vermont court of competent jurisdiction for damages, together with the actual costs of the action, including reasonable attorney’s fees, injunctive relief against unlawful termination or substantial change of competitive circumstances, and such other relief as the court deems appropriate.

(b) A provision in a dealer agreement that purports to deny access to the procedures, forums, or remedies provided by the laws of this State is void and unenforceable.

(c) Notwithstanding subsection (b) of this section, a dealer agreement may include a provision for binding arbitration of disputes. Any arbitration shall be consistent with the provisions of this chapter and 12 V.S.A. chapter 192, and the place of any arbitration shall be in the county in which the dealer’s principal place of business is maintained in this State.

(Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994; amended 2001, No. 86 (Adj. Sess.), § 3, eff. May 2, 2002; 2015, No. 142 (Adj. Sess.), § 2.)

§ 4080 Waiver of chapter void

The provisions of this chapter shall be deemed to be incorporated in every agreement and shall supersede and control all other provisions of the agreement. No supplier may require any dealer to waive compliance with any provision of this chapter. Any contract or agreement purporting to do so is void and unenforceable to the extent of the waiver or variance. Nothing in this chapter may be construed to limit or prohibit good faith settlements of disputes voluntarily entered into between the parties.

(Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994.)

§ 4081 Obligation of successors in interest

The obligation of any supplier or dealer is applied to and made an obligation of any successor in interest or assignee of the supplier or dealer. A successor in interest includes any purchaser of the assets or stock, any surviving entity resulting from merger or liquidation, any receiver, or any trustee of the original supplier or dealer.

(Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994.)

§ 4082 Forestry and industrial equipment

(a) The General Assembly finds that geographic restrictions imposed on trade of certain forestry and industrial equipment within the State is not in the public interest. Restrictions on dealers of large and expensive pieces of industrial and forestry equipment to smaller geographical areas within the State unreasonably restrains trade, precludes any meaningful competition among a small number of dealers, and denies to Vermonters purchasing such equipment the benefits of free and open competition. The General Assembly therefore enacts this law to promote the public welfare by providing for free and open trade of large forestry and industrial equipment within the State.

(b) As used in this section, “forestry or industrial equipment” means heavy vehicular equipment and associated implements designed and intended for forestry or industrial purposes, and shall include all mechanical parts for such equipment.

(c) A supplier of forestry or industrial equipment shall not limit the geographic area in which a dealer may sell or deliver inventory. A supplier shall not charge a fee or fine or otherwise penalize a dealer either directly or indirectly for selling, or having sold, inventory to a consumer located outside of the dealer’s trade area or primary area of responsibility if the selling dealer agrees in writing to the purchaser that the dealer will provide service during the standard factory warranty period, or otherwise to discriminate in shipping products or filling orders placed by dealers of goods on the basis of the location of the consumer, however these terms might be defined in a dealership agreement. The provisions of this section shall be deemed to be incorporated in every agreement and shall supersede and control all other provisions of the agreement. Any term of a contract or agreement either expressed or implied, including a choice of law provision, that is inconsistent with the provisions of this section or purporting to waive compliance with this section is void and unenforceable to the extent of the waiver or variance.

(d) This section shall apply to all agreements and contracts in effect on June 1, 1997 related to forestry or industrial equipment between suppliers and dealers, and to all amendments, renewals, or extensions of such agreements, and to all such agreements entered into thereafter.

(e) [Repealed.]

(Added 1997, No. 59, § 89d, eff. June 30, 1997; amended 1997, No. 144 (Adj. Sess.), § 30, eff. April 27, 1998; 2001, No. 86 (Adj. Sess.), § 4, eff. May 2, 2002.)

Chapter 108 Motor Vehicle Manufacturers, Distributors, and Dealers Franchising

§ 4083 Title of chapter

This chapter may be known and cited as the “Motor Vehicle Manufacturers, Distributors, and Dealers Franchising Practices Act.”

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4084 Legislative findings

(a) The Legislature finds and declares that the distribution and sale of vehicles within this State vitally affects the general economy of the State and the public interest and the public welfare, and that in order to promote the public interest and the public welfare, and in the exercise of its police power, it is necessary to regulate vehicle manufacturers, distributors, or wholesalers and factory or distributor representatives, and to regulate franchises issued by the aforementioned who are doing business in this State in order to prevent frauds, impositions, and other abuses upon its citizens and to protect and preserve the investments and properties of the citizens of this State.

(b) The Legislature further finds that there continues to exist an inequality of bargaining power between motor vehicle franchisors and motor vehicle franchisees. This inequality of bargaining power enables motor vehicle franchisors to compel motor vehicle franchisees to execute franchises and related agreements that contain terms and conditions that would not routinely be agreed to by the motor vehicle franchisees if this inequality did not exist. Furthermore, as the result of the inequality of bargaining power, motor vehicle franchisees have not had the opportunity to have disputes with their motor vehicle franchisors arising out of the franchisor-franchisee relationship heard in an appropriate venue, convenient to both parties, by tribunals established by statute for the resolution of these disputes. It therefore is in the public interest to enact legislation to prevent unfair or arbitrary treatment of motor vehicle franchisees by motor vehicle franchisors. It is the Legislature’s intent to have this chapter liberally construed in order to achieve its purpose.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4085 Definitions

The following words, terms, and phrases when used in this chapter shall have the meanings respectively ascribed to them in this section, except where the context clearly indicates a different meaning:

(1) “Board” means the Transportation Board as established in 19 V.S.A. § 3.

(2) “Coerce” means the failure to act in a fair and equitable manner in performing or complying with any terms or provisions of a franchise or agreement; provided, however, that recommendation, persuasion, urging, or argument shall not be synonymous with coerce or lack of good faith.

(3) “Dealership facilities” means the real estate, buildings, fixtures, and improvements that have been devoted to the conduct of business under the franchise by the new motor vehicle dealer.

(4) “Designated family member” means the spouse, child, grandchild, parent, brother, or sister of the owner of a new motor vehicle dealer who, in the case of the owner’s death, is entitled to inherit the ownership interest in the new motor vehicle dealer under the terms of the owner’s will, or who has been nominated in any other written instrument, or who, in the case of an incapacitated owner of a new motor vehicle dealer, has been appointed by a court as the legal representative of the new motor vehicle dealer’s property.

(5) “Established place of business” means a permanent, commercial building located within this State easily accessible and open to the public at all reasonable times and at which the business of a new motor vehicle dealer, including the display and repair of vehicles, may be lawfully carried on in accordance with the terms of all applicable building codes, zoning, and other land-use regulatory ordinances.

(6) “Franchise” means all agreements and contracts between any new motor vehicle manufacturer, written or otherwise, and any new motor vehicle dealer that relate to the operation of the franchise and purport to fix the legal rights and liabilities of the parties to such agreements or contracts, including agreements pursuant to which the dealer purchases and resells the franchise product, performs warranty and other service on the manufacturer’s products, leases or rents the dealership premises or agreements concerning the dealership premises, or construction or renovation of the dealership premises.

(A) “Franchisee” means a new motor vehicle dealer who enters into or is currently a party to a franchise with a franchisor.

(B) “Franchisor” means any manufacturer, distributor, distributor branch or factory branch, importer, or other person, partnership, corporation, association, or entity, whether resident or nonresident, that enters into or is currently a party to a franchise with a new motor vehicle dealer.

(7) “Fraud” means, in addition to its common law connotation, the misrepresentation, in any manner, of a material fact; a promise or representation not made honestly and in good faith; and the intentional failure to disclose a material fact.

(8) “Good faith” means honesty in fact and the observation of reasonable commercial standards of fair dealing in the trade as defined and interpreted in 9A V.S.A. § 1-201(b)(20) of the Uniform Commercial Code.

(9) “Line-make” means motor vehicles that are offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the franchisor or manufacturer of the motor vehicle.

(10)(A) “Manufacturer” means any person, resident or nonresident, who manufactures or assembles new motor vehicles, or imports for distribution through distributors of motor vehicles, or any partnership, firm, association, joint venture, corporation, or trust, resident or nonresident, that is controlled by the manufacturer.

(B) Additionally, the term manufacturer shall include the following terms:

(i) “Distributor” means any person, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers or who maintains factory representatives or who controls any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers.

(ii) “Factory branch” means a branch office maintained by a manufacturer for the purpose of selling, or offering for sale, vehicles to a distributor or new motor vehicle dealer, or for directing or supervising in whole or in part factory or distributor representatives.

(11) “Motor vehicle” means every vehicle intended primarily for use and operation on the public highways that is self-propelled, not including farm tractors and other machines and tools used in the production, harvesting, and care of farm products.

(12) “New motor vehicle” means a vehicle that has been sold to a new motor vehicle dealer and that has not been used for other than demonstration purposes and on which the original title has not been issued from the new motor vehicle dealer.

(13) “New motor vehicle dealer” means any person who holds, or held at the time a cause of action under this chapter accrued, a valid sales and service agreement, franchise, or contract granted by the manufacturer or distributor for the retail sale of the manufacturer’s or distributor’s new motor vehicles, is not affiliated by ownership or control with a franchisor, and is engaged in the business of any of the following with respect to new motor vehicles or the parts and accessories for those new motor vehicles:

(A) selling or leasing;

(B) offering to sell or lease;

(D) offering through a subscription or like agreement.

(14) “Owner” means any person holding an ownership interest in the business entity operating as a new motor vehicle dealer or under a franchise as defined in this chapter either as a corporation, partnership, sole proprietorship, or other legal entity. To the extent that the rights of any owner under this chapter conflict with the rights of any other owner, such rights shall accrue in priority order based on the percentage of ownership interest held by each owner, with the owner having the greatest ownership interest having first priority and succeeding priority accruing to other owners in the descending order of percentage of ownership interest.

(15) “Person” means every natural person, partnership, corporation, association, trust, estate, or any other legal entity.

(16) “Relevant market area” means the area within a radius of 25 miles around an existing dealer or the area of responsibility defined in the franchise, whichever is greater; except that, where a manufacturer is seeking to establish an additional new motor vehicle dealer and there are one or more existing new motor vehicle dealers of the same line-make within a 10-mile radius of the proposed dealer site, the “relevant market area” shall in all instances be the area within a radius of 10 miles around an existing dealer.

(17) “Motor home” means a motor vehicle that is primarily designed to provide temporary living quarters, built into as an integral part of, or permanently attached to, a self-propelled motor vehicle chassis or van. The vehicle must contain at least four of the following facilities: cooking; refrigeration or ice box; self-contained toilet; heating or air conditioning, or both; a potable water supply system, including a sink and faucet; separate 110-125 volt electrical power supply or an LP gas supply, or both.

(18) “Non-franchised zero-emission vehicle manufacturer” means a manufacturer that:

(A) only manufacturers zero-emission vehicles, including plug-in electric vehicles as defined in 23 V.S.A. § 4(85);

(B) only sells or leases directly to consumers new or used zero-emission vehicles that it manufactures or vehicles that have been traded in in conjunction with a new zero-emission vehicle sale;

(D) has not sold or transferred a combined direct or indirect ownership interest of greater than 30 percent in such non-franchised zero-emission vehicle manufacturer to a franchisor, subsidiary, or other entity controlled by a franchisor or has not acquired a combined direct or indirect ownership interest of greater than 30 percent in a franchisor, subsidiary, or other entity controlled by a franchisor; and

(E) is a dealer registered pursuant to 23 V.S.A. chapter 7, subchapter 4.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009; 2021, No. 63, §§ 1, 2, eff. June 7, 2021.)

§ 4086 Warranty and predelivery obligations to new motor vehicle dealers

(a) Each new motor vehicle manufacturer shall specify in writing to each of its new motor vehicle dealers licensed in this State the dealer’s obligations for predelivery preparation and warranty service on its products, shall compensate the new motor vehicle dealer for such service required of the dealer by the manufacturer, and shall provide the dealer the schedule of compensation to be paid the dealer for parts, work, and service in connection therewith, and the time allowance for the performance of the work and service.

(b) A schedule of compensation shall not fail to include reasonable compensation for diagnostic work as well as for repair service and labor. Time allowances for the diagnosis and performance of predelivery and warranty service shall be reasonable and adequate for the work to be performed. The hourly rate paid to a new motor vehicle dealer shall not be less than the rate charged by the dealer to customers for nonwarranty service and repairs. Each manufacturer shall compensate each of its dealers for parts used to fulfill warranty, predelivery, and recall obligations of repair and servicing at amounts not less than the retail amounts customarily charged by the dealer to its retail customers for like parts for nonwarranty work. The amounts established by a dealer to its retail customers for labor and like parts for nonwarranty work are deemed to be fair and reasonable compensation; provided, however, a manufacturer may rebut such a presumption by showing that such amount so established is unfair and unreasonable in light of the practices of at least four other franchised motor vehicle dealers in the vicinity offering the same line-make or a similar competitive line-make. A manufacturer may not otherwise recover all or any portion of its costs for compensating its motor vehicle dealers licensed in this State for warranty parts and service either by reduction in the amount due to the dealer or by separate charge, surcharge, or other imposition.

(c) For purposes of this section, the “retail amounts customarily charged” by the franchisee for parts may be established by submitting to the manufacturer 100 sequential nonwarranty customer-paid service repair orders or 60 days of nonwarranty customer-paid service repair orders, whichever is less in terms of total cost, covering repairs made no more than 180 days before the submission and declaring the average percentage markup. The average percentage markup so declared is the retail amount, which goes into effect 30 days following the declaration, subject to audit of the submitted repair orders by the manufacturer and adjustment of the average percentage markup based on that audit. Only retail sales not involving warranty repairs, not involving state inspection, not involving routine maintenance such as changing the oil and oil filter, and not involving accessories may be considered in calculating the average percentage markup. A manufacturer may not require a new motor vehicle dealer to establish the average percentage markup by an unduly burdensome or time-consuming method or by requiring information that is unduly burdensome or time-consuming to provide, including part-by-part or transaction-by-transaction calculations. A new motor vehicle dealer may not change the average percentage markup more than two times in one calendar year. Further, the manufacturer shall reimburse the new motor vehicle dealer for any labor performed at the retail rate customarily charged by that franchisee for the same labor when not performed in satisfaction of a warranty, provided the franchisee’s rate for labor not performed in satisfaction of a warranty is routinely posted in a place conspicuous to its service customer.

(d) It is a violation of this section for any new motor vehicle manufacturer to fail to perform any warranty obligations or to fail to include in written notices of factory recalls to new motor vehicle owners and dealers the expected date by which necessary parts and equipment will be available to dealers for the correction of such defects, or to fail to compensate any of the new motor vehicle dealers in this State for repairs effected by a recall.

(e) All claims made by new motor vehicle dealers pursuant to this section for labor and parts shall be paid within 45 days following their approval; provided, however, that the manufacturer retains the right to audit the claims and to charge back the dealer for fraudulent claims for a period of two years following payment. All claims shall be either approved or disapproved within 45 days after their receipt on forms and in the manner specified by the manufacturer, and any claim not specifically disapproved in writing within 45 days after the receipt shall be construed to be approved and payment must follow within 45 days. No claim that has been approved and paid may be charged back to the dealer unless it can be shown that the claim was false or fraudulent, that the repairs were not made properly or were unnecessary to correct the defective condition, or that the dealer failed to reasonably substantiate the claim either in accordance with the manufacturer’s reasonable written procedures or by other reasonable means.

(f) A manufacturer shall retain the right to audit warranty claims for a period of one year after the date on which the claim is paid.

(g) A manufacturer shall retain the right to audit all incentive and reimbursement programs and charge back any amounts paid on claims that are false or unsubstantiated for a period of 18 months from the date on which the claim is paid or one year from the end of a program that gave rise to the payment, whichever is later.

(h) Any chargeback resulting from any audit shall not be made until a final order is issued by the Transportation Board if a protest to the proposed chargeback is filed within 30 days of the notification of the final amount claimed by the manufacturer, to be due after exhausting any procedure established by the manufacturer to contest the chargeback, other than arbitration. The manufacturer has the burden of proof in any proceeding filed at the Board under this section.

(i) It is unlawful for a franchisor, manufacturer, factory branch, distributor branch, or subsidiary to own, operate, or control, either directly or indirectly, a motor vehicle warranty or service facility located in the State except:

(1) on an emergency or interim basis;

(2) if no qualified applicant has applied for appointment as a dealer in a market previously served by a new motor vehicle dealer of that manufacturer’s line-make; or

(3) if the manufacturer is a non-franchised zero-emission vehicle manufacturer that directly owns, operates, and controls the warranty or service facility.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 1989, No. 217 (Adj. Sess.); 2009, No. 57, § 1, eff. June 1, 2009; 2021, No. 63, § 3, eff. June 7, 2021.)

§ 4087 Transportation damages

(a) Notwithstanding the terms, provisions, or conditions of any agreement or franchise, the manufacturer is liable for all damages to motor vehicles before delivery to a carrier or transporter.

(b) If a new motor vehicle dealer determines the method of transportation, the risk of loss passes to the dealer upon delivery of the vehicle to the carrier.

(c) In every other instance, the risk of loss remains with the manufacturer until such time as the new motor vehicle dealer or his or her designee accepts the vehicle from the carrier.

(d)(1) On any new motor vehicle, a manufacturer or distributor shall disclose in writing to a dealer and a dealer shall disclose in writing to the ultimate purchaser any uncorrected damage or any corrected damage to the vehicle, as measured by retail repair costs, if the corrected damage exceeds the following percentage of the manufacturer’s suggested retail price, as defined in 15 U.S.C. §§ 1231-1233:

(A) five percent up to the first $10,000.00; and

(B) two percent on any amount over $10,000.00.

(2) Damage to glass, tires, wheels, and bumpers shall be excluded from the calculation required in this subsection when replaced by identical manufacturer’s original equipment.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 1989, No. 31; 1989, No. 147 (Adj. Sess.), § 1, eff. April 23, 1990; 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4088 Product liability indemnification

Notwithstanding the terms of any franchise agreement, it shall be a violation of this law for any new motor vehicle manufacturer to fail to indemnify and hold harmless its franchised dealers against any judgment or settlement for damages, after reasonable notice of the proposed settlement to the manufacturer, including court costs and reasonable attorney’s fees of the new motor vehicle dealer, arising out of complaints, claims, or lawsuits including strict liability, negligence, misrepresentation, warranty (express or implied), or rescission of the sale as is defined in 9A V.S.A. § 2—608 of the Uniform Commercial Code, to the extent that the judgment or settlement relates to the alleged defective or negligent manufacture, assembly, or design of new motor vehicles, parts, or accessories or other functions by the manufacturer, beyond the control of the dealer.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982.)

§ 4089 Termination; cancellation or nonrenewal

(a) Notwithstanding the terms, provisions, or conditions of any franchise or notwithstanding the terms or provisions of any waiver, no manufacturer shall cancel, terminate, or fail to renew any franchise with a licensed new motor vehicle dealer unless:

(1) the manufacturer:

(A) has satisfied the notice requirement of section 4090 of this title;

(B) has good cause for cancellation, termination, or nonrenewal; and

(2)(A) the Transportation Board finds after a hearing that the manufacturer has acted in good faith and there is good cause for cancellation, termination, failure to renew, or refusal to continue any franchise relationship, consistent with the following:

(i) the new motor vehicle dealer may file a protest with the Board within 45 days after receiving the 90-day notice;

(ii) a copy of the protest shall be served by the new motor vehicle dealer on the manufacturer;

(iii) when a protest is filed to challenge the cancellation, termination, or nonrenewal of a franchise agreement under this section, such franchise agreement shall remain in full force and effect, and such franchisee shall retain all rights and remedies pursuant to the terms and conditions of such franchise agreement, including the right to sell or transfer such franchisee’s ownership interest until a final determination by the Board and any appeal;

(B) the manufacturer, distributor, or branch or division thereof has received the written consent of the new motor vehicle dealer; or

(b) For purposes of this chapter, good cause for terminating, canceling, or failing to renew a franchise shall be limited to failure by the franchisee to substantially comply with those requirements imposed upon the franchisee by the franchise as set forth in subdivision (c)(1) of this section.

(c) Notwithstanding the terms, provisions, or conditions of any agreement or franchise or the terms or provisions of any waiver, good cause shall exist for the purposes of a termination, cancellation, or nonrenewal when:

(1) there is a failure by the new motor vehicle dealer to comply with a provision of the franchise which provision is both reasonable and of material significance to the franchise relationship, provided that compliance on the part of the new motor vehicle dealer is reasonably possible; or if the failure by the new motor vehicle dealer to comply with a provision of the franchise is pursuant to a notice issued under subdivision 4090(a)(2)(A) of this title; and the manufacturer, distributor, or branch or division thereof first acquired actual or constructive knowledge of such failure not more than 180 days prior to the date on which notification is given pursuant to section 4090 of this title;

(2) if the failure by the new motor vehicle dealer, defined in subdivision (1) of this subsection, relates to the performance of the new motor vehicle dealer in sales or service, then good cause shall be defined as the failure of the new motor vehicle dealer to comply with reasonable performance criteria established by the manufacturer if the new motor vehicle dealer was apprised by the manufacturer in writing of such failure; and

(A) the notification stated that notice was provided for failure of performance pursuant to this section;

(B) the new motor vehicle dealer was afforded a reasonable opportunity, for a period of not less than six months, to comply with such criteria;

(C) the new motor vehicle dealer did not demonstrate substantial progress towards compliance with the manufacturer’s performance criteria during such period and the new motor vehicle dealer’s failure was not primarily due to economic or market factors within the dealer’s relevant market area beyond the dealer’s control; and

(D) the performance criteria established by the manufacturer are fair, reasonable, and equitable as applied to all same line-make franchisees of the manufacturer in the State.

(d) The manufacturer shall have the burden of proof under this section for showing that it has acted in good faith, that all notice requirements have been satisfied, and that there was good cause for the franchise termination, cancellation, nonrenewal, or noncontinuance.

(e) Notwithstanding the terms, provisions, or conditions of any agreement or franchise, or the terms or provisions of any waiver, the following do not constitute good cause for the termination, cancellation, nonrenewal, or noncontinuance of a franchise:

(1) The change of ownership of the new motor vehicle dealer’s dealership, excluding any change in ownership that would have the effect of the sale of the franchise without the reasonable consent of the manufacturer, distributor, or branch or division thereof.

(2) The fact that the new motor vehicle dealer refused to purchase or accept delivery of any new motor vehicle parts, accessories, or any other commodity or services not ordered by the new motor vehicle dealer.

(3) The fact that the new motor vehicle dealer owns, has an investment in, participates in the management of, or holds a license for the sale of another line-make of new motor vehicle, or that the new motor vehicle dealer has established another line-make of new motor vehicle in the same dealership facilities as those of the manufacturer, distributor, or branch or division thereof, provided that the new motor vehicle dealer maintains a reasonable line of credit for each line-make of new motor vehicle and that the new motor vehicle dealer remains in substantial compliance with any reasonable facilities requirements of the manufacturer, distributor, or branch or division thereof.

(4) The fact that the new motor vehicle dealer sells or transfers ownership of the dealership or sells or transfers capital stock in the dealership to the new motor vehicle dealer’s spouse, son, or daughter. The manufacturer, distributor, or branch or division thereof shall give effect to such change in ownership unless the transfer of the new motor vehicle dealer’s license is denied or the new owner is unable to license, as the case may be.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009; 2021, No. 20, § 36.)

§ 4090 Notification of termination; cancellation and nonrenewal

(a) Notwithstanding the terms, provisions, or conditions of any franchise prior to the termination, cancellation, or nonrenewal of any franchise, the manufacturer shall furnish notification of such termination, cancellation, or nonrenewal to the new motor vehicle dealer as follows:

(1) in the manner described in subsection (b) of this section; and

(2) not less than 90 days prior to the effective date of such termination, cancellation, or nonrenewal, except as follows:

(A) not less than 15 days prior to the effective date of such termination, cancellation, or nonrenewal that occurs as a result of:

(i) insolvency of the new motor vehicle dealer, or filing of any petition by or against the new motor vehicle dealer under any bankruptcy or receivership law;

(ii) failure of the new motor vehicle dealer to conduct its customary sales and service operations during its customary business hours for seven consecutive business days, except for acts of God or circumstances beyond the direct control of the new motor vehicle dealer;

(iii) conviction of the new motor vehicle dealer, or any owner or operator thereof, of any crime that is punishable by imprisonment; or

(iv) revocation of any license that the new motor vehicle dealer is required to have to operate a dealership;

(B) not less than 180 days prior to the effective date of such termination, cancellation, or nonrenewal that occurs as a result of:

(i) any change in ownership, operation, or control of all or any part of the business of the manufacturer, whether by sale or transfer of assets, corporate stock, or other equity interest, assignment, merger, consolidation, combination, joint venture, redemption, operation of law, or otherwise;

(ii) the termination, suspension, or cessation of a part or all of the business operations of the manufacturer; or

(iii) discontinuance of the sale of the product line or a change in distribution system by the manufacturer, whether through a change in distributors or through the manufacturer’s decision to cease conducting business through a distributor altogether;

(3) not less than 15 days prior to the effective date of such termination, cancellation, or nonrenewal that occurs as a result of:

(A) insolvency of the new motor vehicle dealer, or filing of any petition by or against the new motor vehicle dealer under any bankruptcy or receivership law;

(B) failure of the new motor vehicle dealer to conduct its customary sales and service operations during its customary business hours for seven consecutive business days, except for acts of God or circumstances beyond the direct control of the new motor vehicle dealer;

(C) conviction of the new motor vehicle dealer, or any owner or operator thereof, of any crime that is punishable by imprisonment; or

(D) revocation of any license that the new motor vehicle dealer is required to have to operate a dealership;

(4) not less than 180 days prior to the effective date of such termination, cancellation, or nonrenewal that occurs as a result of:

(A) any change in ownership, operation, or control of all or any part of the business of the manufacturer, whether by sale or transfer of assets, corporate stock, or other equity interest, assignment, merger, consolidation, combination, joint venture, redemption, operation of law, or otherwise;

(B) the termination, suspension, or cessation of a part or all of the business operations of the manufacturer; or

(C) discontinuance of the sale of the product line or a change in distribution system by the manufacturer, whether through a change in distributors or through the manufacturer’s decision to cease conducting business through a distributor altogether.

(b) Notification under this section shall be in writing; shall be by certified mail or personally delivered to the new motor vehicle dealer; and shall contain:

(1) a statement of intention to terminate, cancel, or not to renew the franchise;

(2) a statement of the reasons for the termination, cancellation, or nonrenewal; and

(3) the date on which the termination, cancellation, or nonrenewal takes effect.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009; 2021, No. 20, § 37.)

§ 4091 Payments

(a) Within 90 days of the termination, nonrenewal, or cancellation of any franchise by the manufacturer, pursuant to section 4089 or subdivision 4090(a)(2)(B) of this title or to the termination, nonrenewal, or cancellation of a franchise by the franchisee, the new motor vehicle dealer shall be paid by the manufacturer for the:

(1) dealer cost plus any charges by the manufacturer thereof for distribution, delivery, and taxes paid by the dealer, less all allowances paid to the dealer by the manufacturer for all new and undamaged motor vehicle inventory purchased from the manufacturer or distributor or from another new motor vehicle dealer of the same line-make in the ordinary course of business if the vehicles have 500 miles or less on the odometer, or in the case of a motor home if the vehicle’s odometer has no more than 1,000 miles above the original factory to dealership delivery mileage, and:

(A) were purchased within the previous 12 months; or

(B) are of the current model year or one-year-prior model year. A motor vehicle shall be “undamaged” under this subsection (a) if any corrected damage to the vehicle does not exceed the amounts set forth in subsection 4087(d) of this title;

(2) dealer cost of each new, unused, undamaged, and unsold part or accessory if such part or accessory is in the current parts catalogue and is still in the original, resaleable merchandising package and acquired from the manufacturer or distributor or from another new motor vehicle dealer of the same line-make in the ordinary course of business;

(3) fair market value of all special tools owned by the dealer that were recommended in writing and designated as special tools and equipment by the manufacturer, distributor, or branch or division thereof and purchased from or at the request of the manufacturer or distributor, if the tools and equipment are in usable and good condition, normal wear and tear excepted;

(4) fair market value of each undamaged sign owned by the dealer that bears a trademark, trade name, or commercial symbol used or claimed by the manufacturer if the sign was purchased from or at the request of the manufacturer, distributor, or branch or division thereof;

(5) cost of transporting, handling, packing, and loading of motor vehicles, parts, signs, and special tools, subject to repurchase by the manufacturer.

(b) In addition to the other payments set forth in this section, if a termination, cancellation, or nonrenewal is premised upon any of the occurrences set forth in subdivision 4090(a)(2)(B) of this title, then the manufacturer shall be liable to the dealer for an amount equivalent to the fair market value of the motor vehicle franchise on the day before the date the franchisor announces the action that results in termination, cancellation, or nonrenewal.

(c) Payment is contingent on the new motor vehicle dealer having clear title to the inventory and other items and having the ability to convey the title to the manufacturer, excepting any liens or encumbrances on the inventory and other items that will be released when the manufacturer pays the new motor vehicle dealer and lien holder for the inventory and other items.

(d) The manufacturer may avoid paying fair market value of the motor vehicle franchise to the dealer under subsection (b) of this section if the franchisor, or another motor vehicle franchisor pursuant to an agreement with the franchisor, offers the franchisee a replacement motor vehicle franchise substantially similar to the existing motor vehicle franchise that takes effect no later than the date of the termination, cancellation, or nonrenewal of the franchisee’s existing motor vehicle franchise.

(e) This section shall not apply to a nonrenewal or termination that is implemented as a result of the sale of the assets or stock of the motor vehicle dealer, unless the franchisor and franchisee otherwise agree in writing.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009; 2021, No. 20, § 38.)

§ 4092 Dealership facilities assistance upon termination, cancellation, or nonrenewal

(a) In the event of a termination, cancellation, or nonrenewal under this chapter; and

(1) the new motor vehicle dealer is leasing the dealership facilities from a lessor other than the manufacturer, the manufacturer shall pay the new motor vehicle dealer a sum equivalent to the rent for the unexpired term of the lease or one year’s rent, whichever is less;

(2) if the new motor vehicle dealer owns the dealership facilities, the manufacturer shall pay the new motor vehicle dealer a sum equivalent to the reasonable rental value of the dealership facilities for one year.

(b) If the termination, cancellation, or nonrenewal is pursuant to subdivision 4090(a)(2)(B) of this title, then, with respect to such facilities as were required as a condition of the franchise and used to conduct sales and service operations related to the franchise product, the manufacturer or distributor shall, in addition to the relief described in subsection (a) of this section:

(1) assume the obligations for any lease of the dealership facilities for the unexpired term of the lease or three years’ rent, whichever is less;

(2) arrange for a new lease of any dealership facilities; or

(3) negotiate a lease termination for the dealership facilities at the manufacturer’s expense.

(c) If, in an action for damages under this section, the manufacturer or distributor fails to prove either that the manufacturer or distributor has acted in good faith or that there was good cause for the franchise termination, cancellation, or nonrenewal, then the court, agency, or commission shall order, in addition to any other damages under this section, that the manufacturer or distributor pay the new motor vehicle dealer an amount equal to the value of the dealership as an ongoing business location.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009; 2021, No. 20, § 39.)

§ 4093 Right of designated family member to succeed in ownership

(a) Any owner of a new motor vehicle dealer may appoint by will, or any other written instrument, a designated family member to succeed in the ownership interest of the new motor vehicle dealer.

(b) Unless there exists good cause for refusal to honor succession on the part of the manufacturer or distributor, any designated family member of a deceased or incapacitated owner of a new motor vehicle dealer may succeed to the ownership of the new motor vehicle dealer under the existing franchise, provided that:

(1) the designated family member gives the manufacturer or distributor written notice of his or her intention to succeed to the ownership of the new motor vehicle dealer within 120 days of the owner’s death or incapacity; and

(2) the designated family member agrees to be bound by all the terms and conditions of the franchise.

(c) The manufacturer or distributor may request, and the designated family member shall provide promptly upon said request, personal and financial data that are reasonably necessary to determine whether the succession should be honored.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4094 Refusal to honor succession to ownership; notice required

(a) If a manufacturer or distributor believes that good cause exists for refusing to honor the succession to the ownership of a new motor vehicle dealer by a family member of a deceased or incapacitated owner of a new motor vehicle dealer under the existing franchise agreement, the manufacturer or distributor may, not more than 60 days following receipt of notice of the designated family member’s intent to succeed to the ownership of the new motor vehicle dealer, or any personal or financial data that it has requested, serve upon the designated family member notice of its refusal to honor the succession and of its intent to discontinue the existing franchise with the dealer no sooner than 90 days from the date the notice is served.

(b) The notice must state the specific grounds for the refusal to honor the succession and of its intent to discontinue the existing franchise with the new motor vehicle dealer no sooner than 90 days from the date the notice is served.

(c) If notice of refusal and discontinuance is not timely served upon the family member, the franchise shall continue in effect subject to termination only as otherwise permitted by this chapter.

(d) In the event of a conflict between the written instrument filed by the motor vehicle dealer with the manufacturer designating a certain person as his or her successor and the provisions of this section, the written instrument filed with the manufacturer shall govern.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4095 Burden of proof

In determining whether good cause for the refusal to honor the succession exists, the manufacturer, distributor, factory branch, or importer has the burden of proving that the successor is a person who is not of good moral character or does not meet the franchisor’s existing and reasonable standards and, considering the volume of sales and service of the new motor vehicle dealer, uniformly applied minimum business experience standards in the market area.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982.)

§ 4096 Unlawful acts by manufacturers or distributors

It shall be a violation of this chapter for any manufacturer, as defined under this chapter, to require, attempt to require, coerce, or attempt to coerce any new motor vehicle dealer in this State:

(1) To order or accept delivery of any new motor vehicle, part or accessory thereof, equipment, or any other commodity not required by law or a recall campaign that shall not have been voluntarily ordered by the new motor vehicle dealer, except that this subdivision is not intended to modify or supersede any terms or provisions of the franchise requiring new motor vehicle dealers to market a representative line of those motor vehicles that the manufacturer or distributor is publicly advertising.

(2) To order or accept delivery of any new motor vehicle with special features, accessories, or equipment not included in the list price of such motor vehicles as publicly advertised by the manufacturer or distributor.

(3) To participate monetarily in an advertising campaign or contest, or to purchase any promotional materials, training materials, showroom, or other display decorations or materials at the expense of the new motor vehicle dealer, or to require any dealer without his or her prior written agreement to participate in any manufacturer’s rebate program or to require a dealer to contribute to a manufacturer’s warranty rebate program, either by discount or otherwise without prior notification and prior written consent of the dealer.

(4) To enter into any agreement with the manufacturer or to do any other act prejudicial to the new motor vehicle dealer by threatening to terminate or cancel a franchise or any contractual agreement existing between the dealer and the manufacturer; except that this subdivision is not intended to preclude the manufacturer or distributor from insisting on compliance with the reasonable terms or provisions of the franchise or other contractual agreement, and notice in good faith to any new motor vehicle dealer of the new motor vehicle dealer’s violation of such terms or provisions shall not constitute a violation of the chapter.

(5) To change the capital structure of the new motor vehicle dealer or the means by or through which the new motor vehicle dealer finances the operation of the dealership, provided that the new motor vehicle dealer at all times meets any reasonable capital standards determined by the manufacturer in accordance with uniformly applied criteria; and also provided that no change in the capital structure shall cause a change in the principal management or have the effect of a sale of the franchise without the consent of the manufacturer or distributor; said consent shall not be unreasonably withheld.

(6) To refrain from participation in the management of, investment in, or the acquisition of any other line-make of new motor vehicle or related products; provided, however, that this subdivision does not apply unless the new motor vehicle dealer maintains a reasonable line of credit for each make or line-make of new motor vehicle, the new motor vehicle dealer remains in compliance with any reasonable facilities requirements of the manufacturer, and no change is made in the principal management of the new motor vehicle dealer. For purposes of this chapter, “reasonable facilities requirements” shall not include a requirement that a new motor vehicle dealer establish or maintain exclusive facilities, personnel, or display space.

(A) The new motor vehicle dealer shall provide written notice to the manufacturer and the Board no less than 90 days prior to the dealer’s intent to participate in the management of, investment in, or acquisition of another line-make of new motor vehicles or related products.

(B) Within 45 days of receipt of the notice from the dealer, the manufacturer may file with the Board a protest alleging specific facts to support its claim that the new motor vehicle dealer cannot maintain a reasonable line of credit for each make or line-make of new motor vehicle, the new motor vehicle dealer cannot remain in compliance with any reasonable facilities requirements of the manufacturer, or that a change is being made in the principal management of the new motor vehicle dealer. The manufacturer shall also serve the protest on the new motor vehicle dealer within the 45-day period. If the manufacturer does not file a protest with the Board within 45 days, then the dealer may participate in the management of, investment in, or acquisition of another line-make of new motor vehicles or related products as set forth in its written notice of intent.

(C) Within 45 days of the receipt of a protest from a manufacturer, the Board shall meet, hear, and take evidence limited to the claims set forth in the manufacturer’s protest and make a determination on each of the manufacturer’s claims. The burden of proof shall be on the manufacturer. The decision of the Board shall be final and no appeal may be taken.

(7) To assent to a release, assignment, novation, waiver, or estoppel that would relieve any person from liability to be imposed by this law or to require any controversy between a new motor vehicle dealer and a manufacturer, distributor, or representative to be referred to any person other than the duly constituted courts of the State or the United States of America, if such referral would be binding upon the new motor vehicle dealer.

(8) To change the location of the dealership or to make any substantial alterations to the dealership premises or facilities when to do so would be unreasonable.

(9) To change the location of the dealership or to make any substantial alterations to the dealership premises or facilities in the absence of written assurance from the manufacturer or distributor of a sufficient supply of new motor vehicles to justify the change in location or the alterations.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 1989, No. 84, § 1; 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4097 Manufacturer violations

It shall be a violation of this chapter for any manufacturer defined under this chapter:

(1) To delay, refuse, or fail to deliver new motor vehicles or new motor vehicle parts or accessories in a reasonable time, and in reasonable quantity relative to the new motor vehicle dealer’s facilities and sales potential in the new motor vehicle dealer’s relevant market area, after acceptance of an order from a new motor vehicle dealer having a franchise for the retail sale of any new motor vehicle sold or distributed by the manufacturer, any new motor vehicle, or parts or accessories to new vehicles as are covered by such franchise, if such vehicle, parts, or accessories are publicly advertised as being available for delivery or actually being delivered. This subdivision is not violated, however, if failure is caused by acts or causes beyond the control of the manufacturer.

(2) To refuse to disclose to any new motor vehicle dealer handling the same line-make the manner and mode of distribution of that line-make within the State.

(3) To obtain money, goods, service, or any other benefit from any other person with whom the new motor vehicle dealer does business, on account of, or in relation to, the transaction between the new motor vehicle dealer and such other person, other than for compensation for services rendered, unless such benefit is promptly accounted for, and transmitted to, the new motor vehicle dealer.

(4) To increase prices of new motor vehicles that the new motor vehicle dealer had ordered for private retail consumers prior to the new motor vehicle dealer’s receipt of the written official price increase notification. A sales contract signed by a private retail consumer shall constitute evidence of each such order, provided that the vehicle is in fact delivered to that consumer. In the event of manufacturer price reductions or cash rebates paid to the new motor vehicle dealer, the amount of any reduction or rebate received by a new motor vehicle dealer shall be passed on to the private retail consumer by the new motor vehicle dealer. Price reductions shall apply to all vehicles in the dealer’s inventory that were subject to the price reduction. Price differences applicable to a new model or series shall not be considered a price increase or price decrease. Price changes caused by either the addition to a motor vehicle of required or optional equipment; or revaluation of the U.S. dollar, in the case of foreign-make vehicles or components; or an increase in transportation charges due to increased rates imposed by common carriers shall not be subject to the provisions of this subdivision.

(5) To offer any refunds or other types of inducements to any person for the purchase of new motor vehicles of a certain line or make to be sold to the State or any political subdivision thereof without making the same offer available upon request to all other new motor vehicle dealers in the same line-make within the State.

(6) To release to any outside party, except under subpoena or as otherwise required by law or in an administrative, judicial, or arbitration proceeding involving the manufacturer or new motor vehicle dealer, any business, financial, or personal information that may be from time to time provided by the new motor vehicle dealer to the manufacturer, without the express written consent of the new motor vehicle dealer.

(7) To deny any new motor vehicle dealer the right of free association with any other new motor vehicle dealer for any lawful purpose.

(8)(A) To compete with a new motor vehicle dealer operating under an agreement or franchise from the aforementioned manufacturer in the State.

(B) For purposes of this subdivision (8), any manufacturer that is not a non-franchised zero-emission vehicle manufacturer competes with a new motor vehicle dealer if it engages in the business of any of the following with respect to new motor vehicles or the retail sale of parts and accessories for those new motor vehicles:

(i) selling or leasing;

(ii) offering to sell or lease;

(iii) soliciting or advertising the sale or lease; or

(iv) offering through a subscription or like agreement.

(C) A manufacturer shall not, however, be deemed to be competing when operating a dealership either temporarily for a reasonable period, or in a bona fide retail operation that is for sale to any qualified independent person at a fair and reasonable price, or in a bona fide relationship in which an independent person has made a significant investment subject to loss in the dealership and can reasonably expect to acquire full ownership of the dealership on reasonable terms and conditions.

(9) To unfairly discriminate among its new motor vehicle dealers with respect to warranty reimbursement.

(10) To unreasonably withhold consent to a change in executive management or the sale, transfer, or exchange of the franchise to a qualified buyer capable of being licensed as a new motor vehicle dealer in this State. If a new motor vehicle dealer desires to make a change in its executive management or ownership or to sell its principal assets, the new motor vehicle dealer will give the franchisor written notice of the proposed change or sale. The franchisor shall not arbitrarily refuse to agree to such proposed change or sale and may not disapprove or withhold approval of such change or sale unless the franchisor can prove that:

(A) its decision is not arbitrary; and

(B) the new management, owner, or transferee is unfit or unqualified to be a dealer based on the franchisor’s prior written, reasonable, objective standards or qualifications that directly relate to the prospective transferee’s business experience, moral character, and financial qualifications.

(11) To fail to respond in writing to a request for consent as specified in subdivision (10) of this section within 60 days of receipt of a written request on the forms, if any, generally utilized by the manufacturer or distributor for such purposes and containing the information required therein. Such failure to respond shall be deemed to be consent to the request.

(12) To unfairly prevent a new motor vehicle dealer from receiving fair and reasonable compensation for the value of the new motor vehicle dealership.

(13) To engage in any predatory practice or in any action or failure to act with respect to a new motor vehicle dealer if the action or failure to act is arbitrary, in bad faith, or discriminatory compared to similarly situated new motor vehicle dealers.

(14) To terminate any franchise solely because of the death or incapacity of an owner who is not listed in the franchise as one on whose expertise and abilities the manufacturer relied in the granting of the franchise.

(15) To require a motor vehicle franchisee to agree to a term or condition in a franchise, or in any lease related to the operation of the franchise or agreement ancillary or collateral to a franchise, as a condition to the offer, grant, or renewal of the franchise, lease, or agreement, that:

(A) requires the motor vehicle franchisee to waive trial by jury in actions involving the motor vehicle franchisor;

(B) specifies the jurisdictions, venues, or tribunals in which disputes arising with respect to the franchise, lease, or agreement shall or shall not be submitted for resolution or otherwise prohibits a motor vehicle franchisee from bringing an action in a particular forum otherwise available under the law of this State;

(C) requires that disputes between the motor vehicle franchisor and motor vehicle franchisee be submitted to arbitration or to any other binding alternate dispute resolution procedure; provided, however, that any franchise, lease, or agreement may authorize the submission of a dispute to arbitration or to binding alternate dispute resolution if the motor vehicle franchisor and motor vehicle franchisee voluntarily agree to submit the dispute to arbitration or binding alternate dispute resolution at the time the dispute arises;

(D) provides that in any administrative or judicial proceeding arising from any dispute with respect to the agreements in this section that the franchisor shall be entitled to recover its costs, reasonable attorney’s fees, and other expenses of litigation from the franchisee; or

(E) grants the manufacturer an option to purchase the franchise, or real estate, or business assets of the franchisee.

(16) To impose unreasonable standards of performance or unreasonable facilities, financial, operating, or other requirements upon a motor vehicle franchisee.

(17) To fail or refuse to sell or offer to sell to all motor vehicle franchisees of a line-make, all models manufactured for that line-make, or to require a motor vehicle franchisee to do any of the following as a prerequisite to receiving a model or series of vehicles: requiring the dealer to pay any extra fee; requiring a dealer to execute a separate franchise agreement, purchase unreasonable advertising displays or other materials, or relocate, expand, improve, remodel, renovate, recondition, or alter the dealer’s existing facilities; or requiring the dealer to provide exclusive facilities. However, a manufacturer may require reasonable improvements to the existing facility that are necessary to accommodate special or unique features of a specific model or line. The failure to deliver any such motor vehicle, however, shall not be considered a violation of this section if the failure is due to a lack of manufacturing capacity or to a strike or labor difficulty, a shortage of materials, a freight embargo, or other cause over which the franchisor has no control. This subdivision shall not apply to a manufacturer of a motor home.

(18) To prevent or attempt to prevent any new motor vehicle dealer or any officer, partner, or stockholder of any new motor vehicle dealer from transferring any part of the interest of any of them to any other person; provided, however, that no dealer, officer, partner, or stockholder shall have the right to sell, transfer, or assign the franchise or power of management or control without the consent of the manufacturer or distributor unless such consent is unreasonably withheld. Failure to respond within 60 days of receipt of a written request and applicable manufacturer application forms and related reasonable information customarily required for consent to a sale, transfer, or assignment shall be deemed consent to the request. Within 20 days of receipt of notice from the dealer, the manufacturer shall provide the dealer with a copy of all application forms and all other required reasonable information necessary to evaluate the dealer’s request.

(19) To provide any term or condition in any lease or other agreement ancillary or collateral to a franchise, which term or condition directly or indirectly violates this title.

(20) To use a promotional program or device or an incentive, payment, or other benefit, whether paid at the time of sale of the new motor vehicle to the dealer or later, that results in the sale of or offer to sell a new motor vehicle at a lower price, including the price for vehicle transportation, than the price at which the same model similarly equipped is offered or is available to another dealer in the State during a similar time period. This subdivision shall not prohibit a promotional or incentive program that is available functionally and equally to competing dealers of the same line-make in the State.

(21)(A) To vary the price charged to any of its franchised new motor vehicle dealers located in this State for new motor vehicles based on:

(i) the dealer’s purchase of new facilities, supplies, tools, equipment, or other merchandise from the manufacturer;

(ii) the dealer’s relocation, remodeling, repair, or renovation of existing dealerships or construction of a new facility;

(iii) the dealer’s participation in training programs sponsored, endorsed, or recommended by the manufacturer;

(iv) whether or not the dealer offers for sale more than one line-make of new motor vehicle in the same dealership facility;

(v) the dealer’s sales penetration, sales volume, or level of sales or customer service satisfaction;

(vi) the dealer’s purchase of advertising materials, signage, nondiagnostic computer hardware or software, communications devices, or furnishings; or

(vii) the dealer’s participation in used motor vehicle inspection or certification programs sponsored or endorsed by the manufacturer.

(B) The price of the vehicle, for purposes of this subdivision (21), shall include the manufacturer’s use of rebates, credits, or other consideration that has the effect of causing a variance in the price of new motor vehicles offered to its franchised dealers located in the State.

(22) To modify a franchise during the term of the franchise or upon its renewal if the modification substantially and adversely affects the new motor vehicle dealer’s rights, obligations, investment, or return on investment without giving 60 days’ written notice of the proposed modification to the new motor vehicle dealer, unless the modification is required by law, court order, or the Board. Within the 60-day notice period, the new motor vehicle dealer may file with the Board and serve notice upon the manufacturer a protest requesting a determination of whether there is good cause for permitting the proposed modification. Multiple protests pertaining to the same proposed modification shall be consolidated for hearing. The proposed modification shall not take effect pending the determination of the matter. The manufacturer shall have the burden of establishing good cause for the proposed modification. In determining whether there is good cause for permitting a proposed modification, the Board shall consider any relevant factors, including:

(A) the reasons for the proposed modification;

(B) whether the proposed modification is applied to or affects all new motor vehicle dealers in a nondiscriminatory manner;

(C) whether the proposed modification will have a substantial and adverse effect upon the new motor vehicle dealer’s investment or return on investment;

(D) whether the proposed modification is in the public interest;

(E) whether the proposed modification is necessary to the orderly and profitable distribution of products by the manufacturer; and

(F) whether the proposed modification is offset by other modifications beneficial to the new motor vehicle dealer.

(23) To engage in any action that is arbitrary, in bad faith, or unconscionable.

(24) To change the relevant market area set forth in the franchise agreement without good cause. For purposes of this subdivision, good cause shall include changes in the dealer’s registration pattern, demographics, customer convenience, and geographic barriers.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 1989, No. 84, § 2; 2009, No. 57, § 1, eff. June 1, 2009; 2021, No. 63, § 4, eff. June 7, 2021; 2021, No. 63, § 4a, eff. July 1, 2022.)

§ 4098 Limitations on establishing or relocating dealers

(a) In the event that a manufacturer seeks to enter into a franchise establishing an additional new motor vehicle dealer or relocating an existing new motor vehicle dealer within or into a relevant market area where the same line-make is then represented, the manufacturer shall in writing first give notice to the Transportation Board and notify each new motor vehicle dealer in such line-make in the relevant market area of the intention to establish an additional dealer or to relocate an existing dealer within or into that market area. Within 20 days of receiving such notice or within 20 days after the end of any appeal procedure provided by the manufacturer, any such new motor vehicle dealer may file a protest with the Board opposing the establishing or relocating of the new motor vehicle dealer. A copy of the protest shall be served on the manufacturer within the 20-day period. When such a protest is filed, the manufacturer shall not establish or relocate the proposed new motor vehicle dealer until the Board has held a hearing, nor thereafter, if the Board has determined that there is not good cause for permitting the addition or relocation of such new motor vehicle dealer.

(b) This section does not apply:

(1) to the relocation of an existing dealer within that dealer’s relevant market area, provided that the relocation not be at a site within six miles of a licensed new motor vehicle dealer for the same line-make of motor vehicle; or

(2) if the proposed new motor vehicle dealer is to be established at or within two miles of a location at which a former licensed new motor vehicle dealer for the same line-make of new motor vehicle had ceased operating within the previous two years.

(c) In determining whether good cause has been established for entering into or relocating an additional new motor vehicle dealer for the same line-make, the Board shall take into consideration the existing circumstances, including:

(1) permanency of the investment of both the existing and proposed new motor vehicle dealers;

(2) growth or decline in population and new car registrations in the relevant market area;

(3) effect on the consuming public in the relevant market area;

(4) whether it is injurious or beneficial to the public welfare for an additional new motor vehicle dealer to be established;

(5) whether the new motor vehicle dealers of the same line-make in that relevant market area are providing adequate competition and convenient customer care for the motor vehicles of the line-make in the market area, which shall include the adequacy of motor vehicle sales and service facilities, equipment, supply of motor vehicle parts, and qualified service personnel;

(6) whether the establishment of an additional new motor vehicle dealer would increase competition, and therefore be in the public interest; and

(7) the effect that the proposed franchise would have on the stability of existing franchisees in the same line-make in the relevant market area.

(d) At any hearing conducted by the Board under this section, the manufacturer seeking to establish an additional new motor vehicle dealership or relocate an existing new motor vehicle dealership shall have the burden of proof in establishing that good cause exists.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4099 Civil actions for violations

Notwithstanding the terms, provisions, or conditions of any agreement or franchise or the terms or provisions of any waiver, any consumer who is injured by a violation of this chapter, or any party to a franchise who is so injured in his or her business or property by a violation of this chapter relating to that franchise, or any person so injured because he or she refuses to accede to a proposal for an arrangement that if consummated, would be in violation of this chapter, may bring a civil action in a court having jurisdiction to enjoin further violations, and to recover the actual damages sustained by him or her together with the costs of the suit, including a reasonable attorney’s fee. An action, filed in a court of competent jurisdiction, that gives rise or could give rise to a claim or defense under this chapter must be stayed if, within 60 days after the date of filing of the complaint or service of process, whichever is later, a party to the action files a complaint with the Board asserting the claims or defenses under this chapter.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4100 Applicability

The provisions of this chapter shall apply to the conduct of all persons affected by the presumptions of this chapter situated in this State. Any person who engages directly or indirectly in purposeful contacts within this State in connection with the offering or advertising for sale of, or has business dealings with respect to, a new motor vehicle within the State shall be subject to the provisions of this chapter and the jurisdiction of the courts of this State. Any and all amendments to this chapter shall apply to existing franchise agreements and franchise agreements entered into on or after June 1, 2009.

(Added 1981, No. 157 (Adj. Sess.), § 1, eff. April 14, 1982; amended 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4100a Agreements governed

(a) All written agreements between a manufacturer or distributor and a new motor vehicle dealer shall be subject to the provisions of this chapter, and provisions of such agreements that are inconsistent with this chapter shall be void as against public policy and unenforceable in court or with the Board.

(b) Every new selling agreement or amendment made to such agreement between a new motor vehicle dealer and a manufacturer or distributor shall include, and if omitted, shall be presumed to include, the following language: “If any provision herein contravenes the valid laws or rules of the State of Vermont, such provision shall be deemed to be modified to conform to such laws or rules; or if any provision herein, including arbitration provisions, denies, or purports to deny access to the procedures, forums, or remedies provided for by such laws or rules, such provision shall be void and unenforceable; and all other terms and provisions of this agreement shall remain in full force and effect.”

(Added 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4100b Enforcement; Transportation Board

(a) The Transportation Board established in 19 V.S.A. § 3 shall enforce the provisions of this chapter.

(b) The Board shall adopt rules to implement the provisions of this chapter.

(c) Except for civil actions filed in Superior Court pursuant to section 4099 of this title, the Board shall have the following exclusive powers:

(1) Any person may file a written protest with the Board complaining of conduct governed by and in violation of this chapter. The Board shall hold a public hearing in accordance with the rules adopted by the Board.

(2) The Board shall issue written decisions and may issue orders to any person in violation of this chapter.

(d) The parties to protests shall be permitted to conduct and use the same discovery procedures as are provided in civil actions in the Superior Court.

(e) The Board shall be empowered to determine the location of hearings, appoint persons to serve at the deposition of out-of-state witnesses, administer oaths, and authorize stenographic or recorded transcripts of proceedings before it. Prior to the hearing on any protest, but no later than 45 days after the filing of the protest, the Board shall require the parties to the proceeding to attend a prehearing conference in which the Chair or designee shall have the parties address the possibility of settlement. If the matter is not resolved through the conference, the matter shall be placed on the Board’s calendar for hearing. Settlement communications shall remain confidential, shall be exempt from public inspection and copying under the Public Records Act, shall not be disclosed, and shall not be used as an admission in any subsequent hearing.

(f) Compliance with the discovery procedures authorized by subsection (d) of this section may be enforced by application to the Board. Obedience to subpoenas issued to compel witnesses or documents may be enforced by application to the Superior Court in the county where the hearing is to take place.

(g) Any party to any proceeding under this chapter who recklessly or knowingly fails, neglects, or refuses to comply with an order issued by the Board shall be fined a civil penalty not to exceed $2,500.00. Each day of noncompliance shall be considered a separate violation of such order.

(h) Within 20 days after any order or decision of the Board authorized under this chapter, any party to the proceeding may apply for a rehearing with respect to any matter determined in the proceeding or covered or included in the order or decision. The application for rehearing shall set forth fully every ground upon which it is claimed that the decision or order complained of is unlawful or unreasonable. No appeal from any order or decision of the Board shall be taken unless the appellant makes an application for rehearing as provided in this subsection, and when the application for rehearing has been made, no ground not set forth in the application shall be urged, relied on, or given any consideration by the Board unless the Board for good cause shown allows the appellant to specify additional grounds. Any party to the proceeding may appeal the final order, including all interlocutory orders or decisions, pursuant to 19 V.S.A. § 5(c) within 30 days after the date the Board rules on the application for reconsideration of the final order or decision. All findings of the Board upon all questions of fact properly before the court shall be prima facie lawful and reasonable. The order or decision appealed from shall not be set aside or vacated except for errors of law. No additional evidence shall be heard or taken by the Supreme Court on appeals from orders or decisions by the Board authorized under this title.

(i) In cases where the Board finds that a violation of this chapter has occurred or there has been a failure to show good cause under section 4089 or 4098 of this title, the Board, upon petition, shall determine reasonable attorney’s fees and costs and award them to the prevailing party.

(Added 2009, No. 57, § 1, eff. June 1, 2009; amended 2015, No. 23, § 7; 2021, No. 184 (Adj. Sess.), § 34, eff. July 1, 2022.)

§ 4100c Financing; Vermont Transportation Board

(a) On July 1, 2009, and every year thereafter, there is imposed an annual fee upon each new motor vehicle dealer of $60.00 for each dealer license held by that dealer, and there is imposed upon each manufacturer an annual fee of $600.00 for each line-make of new motor vehicle that the manufacturer sells or distributes within this State.

(b) Upon the filing of a protest under this chapter, the protesting party shall pay to the Board a filing fee of $1,500.00.

(c) The Transportation Board shall administer the fees imposed under this section, and the fees shall be deposited into the Transportation Fund.

(d) The amount of the fee imposed by this section is intended to correlate to the amount of funding required by the Transportation Board to administer its duties under this chapter.

(Added 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4100d Statute of limitations

(a) Actions arising out of any provision of this chapter shall be commenced within four years of the date the cause of action accrues; provided, however, that if a person conceals the cause of action from the knowledge of the person entitled to bring it, the period prior to the discovery of the cause of action by the person so entitled shall be excluded in determining the time limited for commencement of the action.

(b) Notwithstanding any provision in a franchise agreement, if a dispute covered by this chapter or any other law is submitted to mediation or arbitration, the time for the dealer to file a complaint, action, petition, or protest is tolled until the mediation or arbitration proceeding is completed.

(Added 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4100e Right of first refusal

In the event of a proposed sale or transfer of all or substantially all ownership or transfer of all or substantially all dealership assets, and if the franchise agreement has a right of first refusal in favor of the manufacturer, distributor, or franchisor, then notwithstanding the terms of the franchise agreement, the manufacturer, distributor, or franchisor shall be permitted to exercise a right of first refusal to acquire the new motor vehicle dealer’s assets or ownership only if all of the following requirements are met:

(1) In order to exercise the right of first refusal, the manufacturer or distributor shall notify the new motor vehicle dealer in writing of its intent to exercise its right of first refusal within the 60-day notice limit provided in subdivision 4097(11) of this title.

(2) The exercise of the right of first refusal will result in the owner of the dealership receiving the same or greater consideration as the owner has contracted to receive in connection with the proposed change of ownership or transfer.

(3) The proposed change in the dealership’s ownership or transfer of assets does not involve the transfer or sale to any of the following members of the family of one or more owners:

(A) a designated family member or members, including any of the following members of one or more dealer owners:

(i) the spouse;

(ii) a child;

(iii) a grandchild;

(iv) the spouse of a child or a grandchild;

(v) a sibling;

(vi) a parent;

(B) a manager:

(i) employed by the dealer in the dealership during the previous two years; and

(ii) who is otherwise qualified as a dealer operator;

(C) a partnership or corporation controlled by any of the family members described in subdivision (A) of this subdivision (3);

(D) a trust arrangement established or to be established:

(i) for the purpose of allowing the new motor vehicle dealer to continue to qualify as such under the manufacturer’s or distributor’s standards; or

(ii) to provide for the succession of the franchise agreement to designated family members or qualified management in the event of the death or incapacity of the dealer or its principal owner or owners.

(4) The manufacturer or distributor agrees to pay the reasonable expenses, including attorney’s fees that do not exceed the usual, customary, and reasonable fees charged for similar work done for other clients, incurred by the proposed owner or proposed transferee prior to the manufacturer’s or distributor’s exercise of its right of first refusal in negotiating and implementing the contract for the proposed sale or transfer of the dealership or dealership assets.

(Added 2009, No. 57, § 1, eff. June 1, 2009.)

§ 4100f Severability

If any provision in this chapter or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provisions and applications, and to this end, the provisions of this chapter are severable.

(Added 2009, No. 57, § 1, eff. June 1, 2009.)

Chapter 109 Service Station Operators, Oil Companies, and Franchises

§ 4101 Definitions

As used in this chapter:

(1) “Supplier” means any person engaged in the sale, consignment, or distribution of petroleum products to retail outlets.

(2) “Dealer” means any person who is not a petroleum supplier engaged in the retail sale of gasoline to the motoring public in the State under agreements entered into with a petroleum supplier.

(3) “Agreement” is any written agreement between a petroleum supplier and a gasoline dealer under which the gasoline dealer is granted the right to use a trademark, trade name, service mark, or other identifying symbol or name owned by the supplier.

(4) “Person” means an individual, corporation, business trust, estate, trust, partnership, unincorporated association, two or more of the foregoing having a joint or common interest, or any other legal or commercial entity.

(Added 1975, No. 83, § 1.)

§ 4102 Agreements regulated

This chapter shall apply to agreements pertaining to the sale of gasoline and related products when:

(1) more than 35 percent of the dealer’s gross sales are covered by such agreement; and

(2) when such gross sales covered by such agreement are more than $25,000.00 yearly.

(Added 1975, No. 83, § 1.)

§ 4103 Supplier’s disclosure to dealer

A supplier shall disclose in writing to any prospective dealer the following information, before any agreement is concluded:

(1) the gallonage volume history, if any, of the location under negotiation for and during the three-year period immediately past or for the entire period that the location has been supplied by the supplier, whichever is shorter;

(2) the name and last known address of the previous dealer or dealers for the last three years, or for the entire period during which the location has been supplied by the supplier, whichever is shorter, and the reason or reasons for the termination, if unilateral by the supplier, of each dealer agreement;

(3) any legal document committing the location for sale, demolition, or other disposition in effect prior to the termination date of the agreement;

(4) the training programs, if any, and the specific goods and services the supplier will provide without cost to the dealer;

(5) full disclosure of any and all documents or obligations that the dealer will be required to execute at the inception of the relationship; and

(6) full disclosure of all restrictions on the sale, transfer, renewal, and termination of the agreement that are not covered by the documents submitted under subdivision (5) of this section.

(Added 1975, No. 83, § 1.)

§ 4104 Supplier’s right to terminate agreement

(a) A supplier who does not intend to extend or renew a lease or agreement with a dealer upon the expiration of the term of said lease or agreement, or a renewal thereof, shall give written notice of his or her intention to the dealer at least 90 days prior to the expiration date. A supplier may cancel, terminate, or refuse to renew a lease or agreement without this notice at any time upon default on the part of the dealer.

(b) Grounds for termination or cancellation of an agreement or lease that are not contained in the agreement between the supplier and the dealer may be decided by negotiation between the supplier and the dealer or any attorney or other agent representing or designated by the dealer.

(1) criminal misconduct or violation of law relating to the business or premises of the dealer;

(2) fraud;

(3) any unauthorized closing of the business for seven consecutive days;

(4) bankruptcy or insolvency of the dealer;

(5) nonpayment of rent, or loss by the supplier of its legal rights to grant possession of leased premises to the dealer; or

(6) public condemnation or other public taking.

(Added 1975, No. 83, § 1.)

§ 4105 Repurchase by supplier upon termination

In the event of any termination, cancellation, or refusal to renew, whether by mutual agreement or otherwise, a supplier shall make or cause to be made an offer in good faith to repurchase from the dealer at then current wholesale prices any and all merchantable products purchased by said dealer from the supplier; provided, however, that in such event the supplier shall have the right to apply the proceeds against any existing indebtedness owed to him or her by the dealer and further provided that such repurchase obligation is conditioned upon there being no other claims or liens against such products by or on behalf of other creditors of the dealer. Any deposit held by the supplier is to be returned to said dealer within a reasonable period from the date of termination, cancellation, or refusal to renew the agreement or lease, in the event of no prior claims or liens.

(Added 1975, No. 83, § 1.)

§ 4106 Dealer trade associations

No supplier shall coerce or threaten any dealer for the purpose of preventing him or her from joining any trade association made up of dealers. An individual dealer shall have a right to select a representative to negotiate and deal with suppliers on matters having to do with his or her supplier-dealer relationship. Suppliers shall be obliged to negotiate in good faith with the representative so selected by the dealer.

(Added 1975, No. 83, § 1.)

§ 4107 Dealer’s action for damages; attorney’s fees

(a) A dealer may bring an action for damages sustained as a result of:

(1) failure to make such disclosures as are required in section 4103 of this title;

(2) wrongful termination of or refusal to renew his or her agreement as set forth in section 4104 of this title;

(3) failure to make an offer in good faith to repurchase as required in section 4105 of this title; or

(4) any violation of section 4106 of this title.

(b) The remedy provided for in this section is in addition to all other remedies available under contract or as provided by law or equity, including injunctive relief where appropriate. If the court finds that the violation of this chapter has been willful, the court may allow reasonable attorney’s fees to the prevailing party. The parties shall be entitled to a prompt trial.

(Added 1975, No. 83, § 1.)

§ 4108 Void agreement provisions

Any of the following provisions in an agreement or lease, if one is included, whether oral or written, between a supplier and dealer, shall be void as against public policy, except as otherwise provided in this chapter:

(1) Provisions requiring a dealer to take part in any advertising or promotional campaigns that will require the dealer to accept any posters, stamps, tickets, gifts, bonuses, premiums, or any other promotional items unless agreed to in writing by the dealer.

(2) Provisions requiring a dealer to purchase any products of the supplier other than gasoline, diesel fuel, lubricants, or greases. The dealer may, however, agree to accept such products on consignment, but not exclusive as to like products.

(3) Provisions requiring a dealer to assent to any release, assignment, novation, waiver, or estoppel that would relieve any person from liability imposed by this chapter.

(Added 1975, No. 83, § 1; amended 2021, No. 20, § 40.)

§ 4109 Limitation of actions

No action may be brought under this chapter for a cause of action that arose more than one year prior to the date such action is brought.

(Added 1975, No. 83, § 1.)

§ 4110 Gasoline and diesel fuel prices

All persons who shall offer for sale or sell any gasoline or diesel fuel at retail shall post the price of all grades of such gasoline or diesel fuel on the pump from which such fuels are dispensed.

(Added 1975, No. 83, § 1.)

§ 4110a Gasoline service to persons with a disability

(a) Every full-service gasoline station offering self-service pumping at a lesser cost and every self-service gasoline station, when requested by a motor vehicle operator with a disability who has been issued a registration plate or parking card for persons with disabilities under the provisions of 23 V.S.A. § 304a or under the laws of any other state, shall require an attendant employed by the station to dispense gasoline at the self-service cost to the operator with a disability. Gasoline stations shall prominently display the international symbol of disability access to notify patrons of the availability of this service.

(b) Self-service gas stations or convenience stores that are operated by a single employee shall be exempt from the provisions of subsection (a) of this section.

(c) The Commissioner of Motor Vehicles shall provide notice of the provisions of this section to each person who is issued a registration plate or parking card for persons with disabilities and to each person who operates a gasoline station or other facility that offers gasoline or other motor vehicle fuel for sale to the public.

(d) Failure to comply with the provisions of this section, related to providing gas pumping services is a violation of section 4502 of this title.

(Added 1991, No. 48, § 1; amended 2013, No. 96 (Adj. Sess.), § 30.)

Chapter 110 Petroleum Inventories; Reporting Requirements

§ 4111 Definitions

As used in this chapter:

(1) “Commissioner” means the Commissioner of Public Service or the Commissioner’s designee.

(2) “Petroleum product” means propane, gasoline, unleaded gasoline, kerosene, number two heating oil, diesel fuel, kerosene base jet fuel, and number four, five, and six residual oil for utility and nonutility uses.

(3) “Primary storage facility” or “facility” means any facility or terminal with a capacity of 50,000 gallons or more that receives petroleum products by ship, barge, pipeline, truck, or rail, for holding within the State.

(Added 1979, No. 178 (Adj. Sess.), § 1, eff. June 4, 1980; amended 1983, No. 170 (Adj. Sess.), § 3, eff. April 19, 1984.)

§ 4112 Duty of Department of Public Service

The Commissioner shall collect and keep on file any data required under this chapter from persons owning or leasing primary storage facilities.

(Added 1979, No. 178 (Adj. Sess.), § 1, eff. June 4, 1980; amended 1983, No. 170 (Adj. Sess.), § 4, eff. April 19, 1984.)

§ 4113 Inventory reporting; confidentiality

(a) The Commissioner may adopt rules that require any person owning or leasing primary storage facilities within the State to report to the Commissioner data concerning storage, inventory, and product receipts.

(b) Reports filed pursuant to this section shall be an exempt record and confidential pursuant to 1 V.S.A. § 317(c)(1) and shall be maintained for the sole and confidential use of the Commissioner, except that the reports may be disclosed to the federal government or to the appropriate energy agency or department of another state with substantially similar confidentiality statutes for regulations with respect to the reports. However, the Commissioner shall make available to appropriate committees of the General Assembly statistical information derived from the reports required by this section, provided that this may be done in a manner that preserves the confidentiality of the reports submitted by particular persons.

(Added 1979, No. 178 (Adj. Sess.), § 1, eff. June 4, 1980; amended 1983, No. 170 (Adj. Sess.), § 5, eff. April 19, 1984; 2011, No. 59, § 9; 2015, No. 23, § 93.)

§ 4114 Remedies; enforcements

(a) If any person, in violation of the provisions of this chapter, knowingly fails to file a complete and accurate report with the Commissioner, the Commissioner may petition the Superior Court for injunctive relief. Petitions may be filed in the Superior Court of the county in which the defendant resides or, if the defendant is a nonresident, in the Superior Court of any county in which the defendant does business.

(b) A person who, with intent to evade any requirement of this chapter, fails to submit a report when due or to supply required information shall be fined no more than $500.00 or imprisoned not more than 10 days, or both.

(Added 1979, No. 178 (Adj. Sess.), § 1, eff. June 4, 1980; amended 1983, No. 170 (Adj. Sess.), § 6, eff. April 19, 1984.)

§ 4115 Liquid heating fuel; heating system change

Any person who replaces or adapts a liquid fuel heating system so that the liquid fuel is no longer used shall block or otherwise disable the access for delivery of the unused liquid fuel.

(Added 1997, No. 96 (Adj. Sess.), § 1, eff. April 16, 1998.)

Chapter 111 Foreign-Trade Zones

§ 4121 Definitions

As used in this chapter:

(1) “Public corporation” means this State, a political subdivision of this State, a corporate instrumentality of this State and one or more states, or a bi-state compact.

(2) “Private corporation” means a general and business or a general nonprofit corporation organized under the laws of this State.

(Added 1975, No. 148 (Adj. Sess.), § 1, eff. March 3, 1976.)

§ 4122 Authority to establish foreign-trade zones

All public and private corporations shall have the power to apply to the proper authorities of the U.S. government for a grant, and when such a grant is issued, to establish and operate foreign-trade zones under the provisions of the Foreign-Trade Zone Act of 1934 as amended on March 3, 1976.

(Added 1975, No. 148 (Adj. Sess.), § 1, eff. March 3, 1976.)

Chapter 111A Approval of International Trade Agreements

§ 4125 Findings and purpose

The General Assembly makes the following findings of fact:

(1) Today’s international trade agreements have impacts that extend significantly beyond the bounds of traditional trade matters such as tariffs and quotas. Restrictive government procurement rules, for example, may undermine State purchasing laws and preferences that are designed to promote good jobs and a healthy environment.

(2) As the subject matters contained within trade agreements expand, these agreements may impact on areas traditionally governed by the states, including economic development, financial investment, environmental policies, pharmaceutical policy, recreational services, utilities and energy distribution, and agricultural subsidies. The subject matter addressed by trade agreements is constantly evolving into new areas and becomes more likely over time to infringe on State law or policy.

(3) Specific examples in one area important to Vermont—State economic development and environmental policies—that might be constrained by government procurement provisions in international trade agreements include buy-local laws, electronic waste recycling laws, and renewable energy purchasing requirements. Measures that conflict with obligations in one or more international trade agreements could be challenged as potential barriers to trade.

(4) Input from states has been essential to the Office of the U.S. Trade Representative’s understanding of state practices that may be impacted by policies in trade agreements. For example, after states protested that language in the Australia-United States trade agreement was ambiguous and created uncertainty as to whether it applied to Medicaid preferred drug lists, the United States specifically clarified in the Korea-United States trade agreement that similar pharmaceutical policies did not apply to Medicaid.

(5) Currently, the Office of the U.S. Trade Representative asks state governors, without input from state legislatures, whether they will commit state purchasing to trade rules. States, through their governors, may opt into or out of trade rules dealing with government procurement.

(6) Historically, the General Assembly and the Governor have worked together to adopt and implement State procurement policies. The decision to consent to the coverage of Vermont under procurement provisions of international trade agreements should also include consultation with and agreement by the Legislative Branch.

(7) If future trade rules permit states to opt into or out of trade rules dealing with investment and services, in addition to procurement, then the General Assembly intends for the procedures in this chapter to apply to those provisions as well.

(8) It is important for the State to provide information and recommendations to Congress and the U.S. Trade Representative about the possible impacts of proposed trade agreements on State law and policy.

(Added 2009, No. 78 (Adj. Sess.), § 43; eff. April 15, 2010.)

§ 4126 Definitions

As used in this chapter:

(1) “Commission” means the Commission on International Trade and State Sovereignty established in 3 V.S.A. § 23.

(2) “International trade agreement” or “trade agreement” means a trade agreement between the federal government and a foreign country. It does not include a trade agreement between the State and a foreign country to which the federal government is not a party.

(Added 2009, No. 78 (Adj. Sess.), § 43; eff. April 15, 2010.)

§ 4127 Approval of trade agreements

(a) Options for binding the State. If the U.S. government provides the State of Vermont with the opportunity to consent to or reject binding the State to a trade agreement or to a provision within a trade agreement, then the Governor may bind the State or give consent to the U.S. government to bind the State only after consultation with the Commission as provided for in subsection (c) of this section.

(b) Recommendations to Congress and the U.S. Trade Representative. In all other circumstances in which the U.S. government provides the State with information about a proposed trade agreement, the Commission shall make a recommendation to Vermont’s delegation to Congress and to the Office of the U.S. Trade Representative within the time frame requested by the Office of the U.S. Trade Representative.

(1) When a communication from the U.S. Trade Representative regarding a proposed trade agreement is received by the State, the person who receives the communication shall submit a copy of the communication and any proposed trade agreement or relevant provisions of the trade agreement to the Chairs of the Commission. The Chairs may disseminate the information to the chairs of the relevant legislative standing committees of jurisdiction.

(2) The Commission shall review and analyze the trade agreement and issue a recommendation on the potential impact of the trade agreement to the appropriate party as described in subsections (a) and (b) of this section within a time frame that will afford Vermont’s recommendations due consideration.

(Added 2009, No. 78 (Adj. Sess.), § 43; eff. April 15, 2010.)

Chapter 111B Trade Commissions [Effective July 1, 2026]

§ 4129 Vermont-Ireland Trade Commission [Effective July 1, 2026; Repealed effective June 30, 2030]

(a) The Vermont-Ireland Trade Commission is established within the State Treasurer’s office to advance bilateral trade and investment between Vermont and Ireland. The Commission shall consist of seven members as follows:

(1) two members, appointed by the Governor;

(2) two members, appointed by the Speaker of the House;

(3) two members, appointed by the Senate Committee on Committees; and

(4) the State Treasurer or designee.

(b) The purposes of the Vermont-Ireland Trade Commission are to:

(1) advance bilateral trade and investment between Vermont and Ireland;

(2) initiate joint action on policy issues of mutual interest to Vermont and Ireland;

(3) promote business and academic exchanges between Vermont and Ireland;

(4) encourage mutual economic support between Vermont and Ireland;

(5) encourage mutual investment in the infrastructure of Vermont and Ireland; and

(6) address other issues as determined by the Commission.

(c) The members of the Commission, except for the State Treasurer or designee, shall be appointed for terms of four years each and shall continue to serve until their successors are appointed, except that in order to achieve staggered terms, the two members appointed by the Governor shall serve initial terms of two years each and the two members appointed by the Speaker of the House shall serve initial terms of three years each. Members may be reappointed. A member serves at the pleasure of the member’s appointing authority. Not more than two members serving on the Commission may be members of the General Assembly.

(d) A vacancy in the membership of the Commission shall be filled by the relevant appointing authority within 90 days after the vacancy.

(e) The Commission shall select a chair from among its members at the first meeting. The Chair, as appropriate, may appoint from among the Commission members subcommittees or a subcommittee at the Chair’s discretion. A majority of the members of the Commission shall constitute a quorum for purposes of transacting the business of the Commission.

(f) The Commission shall submit a written report with its findings, results, and recommendations to the Governor and the General Assembly within one year of its initial organizational meeting and on or before December 1 of each succeeding year for the activities of the current calendar year. The report shall also include a disclosure listing any in-kind contributions received by specific members of the Commission through their work in the Commission in the current calendar year.

(g) The Vermont-Ireland Trade Commission is authorized to raise funds, through direct solicitation or other fundraising events, alone or with other groups, and accept donations, grants, and bequests from individuals, corporations, foundations, governmental agencies, and public and private organizations and institutions, to defray the Commission’s administrative expenses and to carry out its purposes as set forth in this chapter. The funds, donations, grants, or bequests received pursuant to this chapter shall be deposited in a bank account and allocated annually by the State Treasurer’s office to defray the Commission’s administrative expenses and carry out its purposes. Any monies so withdrawn shall not be used for any purpose other than the payment of expenses under this chapter. Interest earned shall remain in the bank account.

(h) Members of the Commission shall not receive compensation or be entitled to reimbursement of expenses by the State of Vermont for their service on the Commission.

(Added 2025, No. 65, § 4, eff. July 1, 2026.)

§ 4129 Repealed

[Repealed]

(Added 2025, No. 65, § 4, eff. July 1, 2026; repealed by 2025, No. 65, § 6, eff. June 30, 2030.)

Chapter 112 Emergency Petroleum Set-Aside Act

§ 4131 Purpose and findings

The Legislature hereby finds and declares: that adequate supplies of fuel are essential to the health, welfare, and safety of the people of the State of Vermont; that any severe disruption in fuel supplied for use within the State would cause grave hardship and pose a threat to the health and economic well-being of the people of the State; that such interruptions should be responded to by reliance to the greatest extent practicable on the free market system; and that temporary and concurrent State authority for a fuel set-aside program should be in place as the federal government terminates, suspends, or fails to implement all or part of the federal program.

(Added 1981, No. 162 (Adj. Sess.), § 1, eff. April 15, 1982.)

§ 4132 Definitions

As used in this chapter:

(1) “Consumer” means any individual, trustee, agency, partnership, association, corporation, company, municipality, political subdivision, or other legal entity that purchases liquid fossil fuels for ultimate consumption within Vermont.

(2) “Commissioner” means the Commissioner of Public Service or the Commissioner’s designee.

(3) “Distributor” means any individual, trustee, agency, partnership, association, corporation, company, municipality, political subdivision, or other legal entity that purchases or markets liquid fossil fuels from a prime supplier or any other source and resells those fuels to consumers within Vermont.

(4) “Liquid fossil fuel” means heating oils, light and heavy diesel oil, motor gasoline, propane, butane, residual fuel oils, kerosene, and aviation fuels.

(5) “Petroleum set-aside” means the amount of liquid fossil fuel that is made available from the total supply of a prime supplier for utilization by the Department of Public Service pursuant to this chapter to resolve hardships and emergencies due to energy shortages.

(6) “Prime supplier” means any individual, trustee, agency, partnership, association, corporation, company, municipality, political subdivision, or other legal entity that makes the first sale of any liquid fossil fuel into the State distribution system for consumption within the State.

(Added 1981, No. 162 (Adj. Sess.), § 1, eff. April 15, 1982; amended 1983, No. 170 (Adj. Sess.), § 7, eff. April 19, 1984.)

§ 4133 Petroleum set-aside

(a) The Commissioner shall adopt rules establishing a petroleum set-aside system for liquid fossil fuels. The fuel set-aside system established pursuant to this chapter shall not go into effect in whole or in part except where the federal government terminates, suspends, or fails to implement all or part of the federal petroleum allocation program. After a determination has been made by the Governor that the program is required to meet a petroleum supply shortage within the State that will significantly impair essential public services or essential economic activity, and after the Governor has complied with any notice requirements and has received any approval required by federal law, the Commissioner shall implement only that portion of the State set-aside program necessary to prevent and alleviate any energy hardships or shortages. The State set-aside program shall continue in effect for no more than 90 days and shall terminate when the federal petroleum allocation program is renewed or implemented or when the energy hardship or shortage ceases to exist. Rules adopted by the Commissioner shall direct that prime suppliers set aside an amount of liquid fossil fuel, as determined by the Commissioner, which amount shall be a percentage of the monthly volume of liquid fossil fuels that prime suppliers intend to sell into the State distribution system for consumption within the State.

(b) In addition to meeting the purposes set forth in section 4131 of this title and the requirements of subsection (a) of this section, the rules establishing the petroleum set-aside system shall provide that:

(1) A prime supplier inform the Department each month of the monthly volume of each product subject to petroleum set-aside that is intended to be sold into the State distribution system for consumption within the State, provided the Commissioner determines that such information is needed.

(2) The Commissioner shall notify each prime supplier of the monthly petroleum set-aside percentage, not exceeding three percent, applicable to each product subject to petroleum set-aside. The Commissioner shall review and revise such percentages monthly.

(3) The amount of petroleum to be set aside for a particular month cannot be accumulated or deferred; it shall be made available from stocks of prime suppliers, whether directly or through distributors.

(4) Procedures shall be established for making an application for an allocation from the petroleum set-aside reserves and for approval or disapproval of that application by the Commissioner.

(Added 1981, No. 162 (Adj. Sess.), § 1, eff. April 15, 1982; amended 1983, No. 170 (Adj. Sess.), § 8, eff. April 19, 1984; 2015, No. 23, § 94.)

§ 4134 Violation; penalties

(a) Any person who violates any provision of this chapter or any rule or order issued pursuant to this chapter shall be subject to a fine of not more than $10,000.00 for each violation.

(b) The penalty provided for in subsection (a) of this section shall be recovered in an action or special proceeding brought by the Attorney General.

(c) Alternatively, or in addition to the action or proceeding to impose the fine provided by subsection (a) of this section, the Attorney General may institute an action or proceeding to enjoin any violation of or to enforce any provision of this chapter or any rule, regulation, or order issued under this chapter.

(Added 1981, No. 162 (Adj. Sess.), § 1, eff. April 15, 1982.)

Chapter 113 Commercial Molds, Dies, and Forms

§ 4151 Definitions

As used in this chapter:

(1) The term “customer” means any individual or entity who causes or caused a molder to fabricate, cast, or otherwise make a die, mold, or form or who causes or caused a molder to use a die, mold, or form to manufacture, assemble, or otherwise make a product or products.

(2) The term “molder” means any individual or entity, including a tool or die maker who fabricates, casts, or otherwise makes a die, mold, or form or who uses a die, mold, or form to manufacture, assemble, or otherwise make a product or products.

(3) The term “within three years following the last prior use” shall be construed to include any period following the last prior use of a die, mold, or form regardless of whether or not such period precedes April 14, 1981.

(Added 1981, No. 16, eff. April 14, 1981.)

§ 4152 Exclusions

This chapter shall not apply where a molder retains title to and possession of a die, mold, or form, and nothing in this chapter shall be construed to grant a customer any rights, title, or interest in such a die, mold, or form.

(Added 1981, No. 16, eff. April 14, 1981.)

§ 4153 Ownership rights

(a) Unless otherwise agreed in writing, if a customer does not take possession from a molder of a die, mold, or form situated in this State within three years following the last prior use thereof, all of the customer’s rights, title, and interest to such die, mold, or form may be transferred according to subsections (b) and (c) of this section to the molder solely for the purpose of destroying such die, mold, or form.

(b) If a molder chooses to have all rights, title, and interest to any die, mold, or form transferred to the molder by operation of this subsection and subsection (c), the molder shall send written notice by registered mail, return receipt requested, to the customer holding the rights, title, and interest at the address, if any, indicated in the agreement pursuant to which the molder obtained possession of the die, mold, or form and to the customer’s last known address. The notice shall state that the molder intends to terminate all of the customer’s rights, title, and interest by having all such rights, title, and interest transferred to the molder for purposes of destroying the die, mold, or form.

(c) If a customer does not take possession of the particular die, mold, or form within 180 days following the date the molder receives acknowledgment or nonacknowledgment of the return receipt of such notice, or does not make other contractual arrangements with the molder for taking possession or for the storage thereof, all rights, title, and interest of the customer shall transfer by law to the molder in order that the die, mold, or form be destroyed. Thereafter, the molder shall destroy the particular die, mold, or form as the molder’s own property without any risk of liability to the customer.

(Added 1981, No. 16, eff. April 14, 1981.)

§ 4154 [Reserved for future use.]

§ 4155 Manufacturer’s mold lien

(a) Molders shall have a lien, dependent on possession, on all dies, molds, forms, or patterns in their hands belonging to a customer, for the balance due them from such customer for any manufacturing, engineering, or fabrication work, and in the value of all material related to such work. The molder may retain possession of the die, mold, form, or pattern until the charges are paid.

(b) A lien under subsection (a) of this section attaches and is perfected 30 days after any payment is due.

(c) A molder may enforce the lien by sale as provided in sections 1952 and 1953 of this title, unless such sale would be in violation of any right of a customer under federal patent or copyright law. The owner of property subject to a molder’s lien who desires to question the reasonableness of such charges shall have the rights provided in section 1954 of this title.

(d) The parties may alter the provisions of subsections (a), (b), and (c) of this section by contract.

(e) A lien under this section does not take priority over an existing perfected security interest.

(f) Nothing in this section is intended to alter any rights, obligations, excuses, or remedies under 9A V.S.A. Article 2.

(g) A court may, on request of a customer, substitute a bond or other collateral in an amount satisfactory to the court, and order release of the lien.

(Added 1997, No. 123 (Adj. Sess.), § 1.)

Chapter 115 New Motor Vehicle Arbitration

§ 4170 Legislative intent

The Legislature finds and declares that manufacturers, distributors, and importers of new motor vehicles should be obligated to provide speedy and less costly resolution of automobile warranty problems. Manufacturers should be required to provide in as expeditious a manner as possible a refund of the consumer’s purchase price or payments to a lessor and lessee or a replacement vehicle that is acceptable to the consumer whenever the manufacturer is unable to make the vehicle conform with its applicable warranty. New motor vehicle dealers and used motor vehicle dealers cannot be sued under this chapter.

(Added 1983, No. 211 (Adj. Sess.), § 1; amended 1987, No. 242 (Adj. Sess.), § 1.)

§ 4171 Definitions

As used in this chapter:

(1) “Board” means, unless otherwise indicated, the Vermont Motor Vehicle Arbitration Board.

(2) “Consumer” means the purchaser, other than for purposes of resale, of a new motor vehicle or lessee of a new motor vehicle, other than for the purposes of sub-lease, that has not been previously leased by another person, any person to whom such motor vehicle is transferred during the duration of an express warranty applicable to the motor vehicle, and any other person entitled by the terms of the warranty to enforce the obligations of the warranty, but “consumer” shall not include any governmental entity or any business or commercial enterprise that registers or leases three or more motor vehicles.

(3) “Early termination costs” mean expenses and obligations incurred by a motor vehicle lessee as a result of an early termination of a written lease agreement and surrender of a motor vehicle to a manufacturer under the provisions of subsection 4172(e) of this title, including penalties for prepayment of finance arrangements.

(4) “Lease or leased” means a written agreement with a lessee as defined in subdivision (5) of this section, which shall be for the use of a motor vehicle for consideration for a term of two or more years.

(5) “Lessee” means any consumer who leases a motor vehicle pursuant to a written lease agreement for a term of two or more years.

(6) “Motor vehicle” means a passenger motor vehicle that is purchased, leased, or registered in the State of Vermont, and shall not include tractors, motorized highway building equipment, road-making appliances, snowmobiles, motorcycles, motor-driven cycles, or the living portion of recreation vehicles, or trucks with a gross vehicle weight rating over 12,000 pounds.

(7) “Manufacturer” means any person, resident or nonresident, that manufactures or assembles new motor vehicles or imports for distribution through distributors of motor vehicles or any partnership, firm, association, joint venture, corporation, or trust, resident or nonresident, that is controlled by a manufacturer. In the case of the portion of a recreation vehicle subject to this chapter, and except as otherwise provided in subdivision 4172(e)(2) of this title, “manufacturer” means the final stage assembler of the completed recreation vehicle. Additionally, the term “manufacturer” shall include:

(A) “distributor,” meaning any person, resident or nonresident, that in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers or new motor vehicle lessors or maintains factory representatives or that controls any person, firm, association, corporation, or trust, resident or nonresident, that in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers or new motor vehicle lessors; and

(B) “factory branch,” meaning any branch office maintained by a manufacturer for the purpose of selling, leasing, or offering for sale or lease, vehicles to a distributor or new motor vehicle dealer or for directing or supervising, in whole or in part, factory distributor representatives.

(8) “Motor vehicle lessor” means a person who holds title to a motor vehicle leased to a lessee under a written lease agreement for a term of two or more years, or who holds the lessor’s rights under such an agreement.

(9) A “new motor vehicle” means a motor vehicle that is still under the manufacturer’s express warranty or, in the case of the portion of a recreation vehicle that is subject to this chapter, that is still under an express warranty for the relevant component.

(10) Warranty shall be defined as including the following:

“Express warranty” means express warranties as defined in the Uniform Commercial Code, 9A V.S.A. § 2—313, plus any written warranty of the manufacturer.

(Added 1983, No. 211 (Adj. Sess.), § 1; amended 1985, No. 260 (Adj. Sess.), § 1; 1987, No. 242 (Adj. Sess.), § 2; 1999, No. 18, § 27, eff. May 13, 1999; 2009, No. 152 (Adj. Sess.), § 19l, eff. Sept. 1, 2010; 2011, No. 164 (Adj. Sess.), § 6; 2017, No. 206 (Adj. Sess.), § 14.)

§ 4172 Enforcement of warranties

(a) Every new motor vehicle as defined in section 4171 of this title sold in this State must conform to all applicable warranties.

(b) It shall be the manufacturer’s obligation under this chapter to ensure that all new motor vehicles sold, leased, or registered in this State conform with manufacturer’s express warranties. The manufacturer may delegate responsibility to its agents or authorized dealers; provided, however, in the event the manufacturer delegates its responsibility under this chapter to its agents or authorized dealers, it shall compensate the dealer for all work performed by the dealer in satisfaction of the manufacturer’s responsibility under this chapter in the manner set forth in chapter 108 of this title known as the “Motor Vehicle Manufacturers, Distributors, and Dealers’ Franchising Practices Act” as that act may be from time to time amended.

(c) If a new motor vehicle does not conform to all applicable express warranties and the consumer reports the nonconformity to the manufacturer, its agent, or authorized dealer during the term of the warranty, the manufacturer shall cause whatever repairs are necessary to conform the vehicle to the warranties, notwithstanding the fact that the repairs are made after the expiration of a warranty term.

(d) A manufacturer, its agent, or authorized dealer shall not refuse to provide a consumer with a written repair order and shall provide to the consumer each time the consumer’s vehicle is brought in for examination or repair of a defect a written summary of the complaint and a fully itemized statement indicating all work performed on the vehicle including examination of the vehicle, parts, and labor.

(e)(1) If, after a reasonable number of attempts, the manufacturer, its agent, or authorized dealer or its delegate is unable to conform the motor vehicle to any express warranty by repairing or correcting any defect or condition covered by the warranty that substantially impairs the use, market value, or safety of the motor vehicle to the consumer, the manufacturer shall, at the option of the consumer within 30 days of the effective date of the Board’s order, either:

(A) Replace the motor vehicle with a new motor vehicle from the same manufacturer, if available, of comparable worth to the same make and model with all options and accessories with appropriate adjustments being allowed for any model year differences.

(B) Accept return of the vehicle from the consumer and refund to the consumer the full purchase price or to the lessee in the case of leased vehicles, as provided in subsection (i) of this section. In those instances in which a refund is tendered, the manufacturer shall refund to the consumer the full purchase price as indicated in the purchase contract and all credits and allowances for any trade-in or downpayment, finance charges, credit charges, registration fees, and any similar charges and incidental and consequential damages or, in the case of leased vehicles, as provided in subsection (i) of this section. Refunds shall be made to the consumer and lien holder, if any, as their interests may appear or to the motor vehicle lessor and lessee as provided in subsection (i) of this section. A reasonable allowance for use shall be that amount directly attributable to use by the consumer prior to his or her first repair attempt and shall be calculated by multiplying the full purchase price of the vehicle by a fraction having as its denominator 100,000 and having as its numerator the number of miles that the vehicle traveled prior to the first attempt at repairing the vehicle. If the manufacturer refunds the purchase price or a portion of the price to the consumer, any Vermont motor vehicle purchase and use tax paid shall be refunded by the State to the consumer in the proportionate amount. To receive a refund, the consumer must file a claim with the Commissioner of Motor Vehicles within 90 days of the effective date of the order.

(2) In the case of a recreation vehicle, the warrantor of the chassis shall be responsible for any refund under subdivision (1)(B) of this subsection or under subsection (i) of this section, even if the consumer’s or lessee’s right to the refund results from a nonconformity caused by the final stage assembler of the completed recreation vehicle or by another warranted component subject to this chapter.

(f) It shall be an affirmative defense to any claim under this chapter that an alleged nonconformity does not substantially impair the use, market value, or safety, or that the nonconformity is the result of abuse, neglect, or unauthorized modifications or alterations of a motor vehicle by a consumer.

(g) It shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable warranties if:

(1) the same nonconformity as identified in any written examination or repair order has been subject to repair at least three times by the manufacturer, its agent, or authorized dealer and at least the first repair attempt occurs within the express warranty term and the same nonconformity continues to exist; or

(2) the vehicle is out of service by reason of repair of one or more nonconformities, defects, or conditions for a cumulative total of 30 or more calendar days during the term of the express warranty. The term of any warranty and the 30-day period shall be extended by any period of time during which repair services were not available to the consumer because of war, invasion, strike, fire, flood, or other natural disaster. If an extension of time is necessitated due to these conditions, the manufacturer shall cause provision for the free use of a vehicle to the consumer whose vehicle is out of service. A vehicle shall not be deemed out of service if it is available to the consumer for a major part of the day.

(h) In order for an attempt at repair to qualify for the presumptions of this section, the attempt at repair must be evidenced by a written examination or repair order issued by the manufacturer, its agent, or its authorized dealer. The presumptions of this section shall only apply to three attempts at repair evidenced by written examination or repair orders undertaken by the same agent or authorized dealer, unless the consumer shows good cause for taking the vehicle to a different agent or authorized dealer.

(i) In cases in which the lessee elects a replacement vehicle, a collateral change with appropriate adjustments for any model year difference or excess mileage, or both, shall be incorporated into an amended lease agreement. In cases in which a refund is tendered by a manufacturer for a leased motor vehicle under subsection (e) of this section, the refund and rights of the motor vehicle lessor, lessee, and manufacturer shall be in accordance with the following:

(1) The manufacturer shall provide to the lessee the aggregate deposit and rental payments previously paid to the motor vehicle lessor by the lessee, and incidental and consequential damages, if applicable, minus a reasonable allowance for use and allocated payments for purchase and use tax. The aggregate deposit shall include all cash payments and trade-in allowances tendered by the lessee to the motor vehicle lessor under the lease agreement. The reasonable allowance for use shall be calculated by multiplying the aggregate deposit and rental payments made by the lessee on the motor vehicle by a fraction having as its denominator the number of miles allowed in the lease contract and having as its numerator the number of miles that the vehicle traveled prior to the first attempt at repairing the vehicle. Any miles in excess of those allowed in the lease contract shall be added to the mileage at the first repair attempt or first day out of service prior to calculating the reasonable allowance for use.

(2) The manufacturer shall provide to the motor vehicle lessor the aggregate of the following:

(A) the lessor’s actual purchase cost, less payments made by the lessee;

(B) the freight cost, if applicable;

(D) any fee paid to another to obtain the lease; and

(E) an amount equal to five percent of the lessor’s actual purchase cost. The amount in this subdivision shall be instead of any early termination costs as defined in subdivision 4171(3) of this chapter or as described in the lease agreement.

(3) Vermont motor vehicle purchase and use tax shall be refunded by the State to whomever paid the tax. The party must file a claim with the Commissioner of Motor Vehicles within 90 days of the effective date of the order.

(4) The lessee’s lease agreement with the motor vehicle lessor and all contractual obligations shall be terminated upon a decision of the Board in favor of the lessee as of the effective date of the order. The lessee shall not be liable for any further costs or charges to the manufacturer or motor vehicle lessor under the lease agreement.

(5) The motor vehicle lessor shall release the motor vehicle title to the manufacturer upon payment by the manufacturer under the provisions of this subsection.

(6) The Board shall give notice to the motor vehicle lessor of the lessee’s filing of a request for arbitration under this chapter and shall notify the motor vehicle lessor of the date, time, and place scheduled for a hearing before the Board. The motor vehicle lessor shall provide testimony and evidence necessary to the arbitration proceedings. Any decision of the Board shall be binding upon the motor vehicle lessor.

(Added 1983, No. 211 (Adj. Sess.), § 1; amended 1985, No. 260 (Adj. Sess.), § 2; 1987, No. 242 (Adj. Sess.),§§ 3, 4; 1989, No. 157 (Adj. Sess.), § 1, eff. April 30, 1990; 1999, No. 18, § 28, eff. May 13, 1999; 2017, No. 206 (Adj. Sess.), § 15.)

§ 4173 Procedure to obtain refund or replacement; waiver of rights void

(a)(1) After reasonable attempt at repair or correction of the nonconformity, defect, or condition, or after the vehicle is out of service by reason of repair of one or more nonconformities, defects, or conditions for a cumulative total of 30 or more calendar days as provided in this chapter, the consumer shall notify the manufacturer and lessor in writing, on forms to be provided by the manufacturer at the time the new motor vehicle is delivered, of the nonconformity, defect, or condition and the consumer’s election to proceed under this chapter. The forms shall be made available by the manufacturer to any public or nonprofit agencies that shall request them. Notice of consumer rights under this chapter shall be conspicuously displayed by all authorized dealers and agents of the manufacturer.

(2) The consumer shall in the notice elect whether to use the dispute settlement mechanism or the arbitration provisions established by the manufacturer or to proceed under the Vermont Motor Vehicle Arbitration Board as established under this chapter. Except in the case of a settlement agreement between a consumer and manufacturer, and unless federal law otherwise requires, any provision or agreement that purports to waive, limit, or disclaim the rights set forth in this chapter or that purports to require a consumer not to disclose the terms of the provision or agreement is void as contrary to public policy.

(3) The consumer’s election of whether to proceed before the Board or the manufacturer’s mechanism shall preclude his or her recourse to the method not selected.

(b) A consumer cannot pursue a remedy under this chapter if he or she has discontinued financing or lease payments.

(c)(1) Arbitration of the consumer’s complaint, either through the manufacturer’s dispute settlement mechanism or the Board, must be held within 45 days of receipt by the manufacturer or the Board of the consumer’s notice electing the remedy of arbitration unless:

(A) the consumer or the manufacturer shows good cause for an extension of time, not to exceed an additional 30-day period; or

(B) the manufacturer does not contest the consumer’s complaint, in which case an arbitration hearing is not required.

(2) If an extension of time is requested by the manufacturer, the manufacturer shall provide free use of a vehicle to the consumer if the consumer’s vehicle is out of service.

(3) If the consumer elects to proceed in accordance with the manufacturer’s dispute settlement mechanism, the matter is contested, and the arbitration of the dispute is not held within 45 days of the manufacturer’s receipt of the consumer’s notice and the manufacturer is not able to establish good cause for the delay, the consumer shall be entitled to receive the relief requested under this chapter.

(d) Within the 45-day period set forth in subsection (c) of this section but at least five days prior to hearing, the manufacturer shall have one final opportunity to correct and repair the defect that the consumer claims entitles the consumer to a refund or replacement vehicle. Any right to a final repair attempt is waived if the manufacturer does not complete it at least five days prior to hearing. If the consumer is satisfied with the corrective work done by the manufacturer or the manufacturer’s delegate, the arbitration proceedings shall be terminated without prejudice to the consumer’s right to request arbitration be recommenced within one year following the expiration of the express warranty term in accordance with subsection 4179(a) of this title.

(e) If an arbitration hearing is required under this section, the vehicle must be presented at the hearing site for an inspection or test drive, or both, by members of the Board.

(f) The manufacturer shall refund the amounts provided for in subsection 4172(e) or (i) of this chapter within 30 days of the facsimile transmission confirmation receipt of a decision of the Board or within 15 days of final adjudication. The consumer shall receive an additional 10 percent of the total award if the manufacturer fails to complete the transaction by the effective date of the order.

(Added 1983, No. 211 (Adj. Sess.), § 1; amended 1985, No. 260 (Adj. Sess.), § 3; 1987, No. 242 (Adj. Sess.), §§ 5, 6; 1999, No. 18, § 29, eff. May 13, 1999; 2015, No. 50, § 31, eff. June 3, 2015; 2017, No. 206 (Adj. Sess.), § 16, eff. May 30, 2018; 2023, No. 41, § 1, eff. June 1, 2023.)

§ 4174 Vermont Motor Vehicle Arbitration Board

(a) There is created a Vermont Motor Vehicle Arbitration Board consisting of five members and three alternate members to be appointed by the Governor for terms of three years. Board members may be appointed for two additional three-year terms. One member of the Board and one alternate shall be new car dealers in Vermont, one member and one alternate shall be persons active as automobile technicians, and three members and one alternate shall be persons having no direct involvement in the design, manufacture, distribution, sales, or service of motor vehicles or their parts. Board members shall be compensated in accordance with the provisions of 32 V.S.A. § 1010. Administrative support for the Board shall be provided as determined by the Secretary of Transportation.

(b) The Board shall adopt rules under the provisions of 3 V.S.A. chapter 25 to implement the provisions of this chapter.

(d) The Board shall render a decision within 30 days of the conclusion of a hearing in a contested matter, and within 30 days of the manufacturer’s answer in an uncontested matter. The Board has authority to issue any and all damages as are provided by this chapter.

(Added 1983, No. 211 (Adj. Sess.), § 1; amended 1985, No. 260 (Adj. Sess.), § 4; 1987, No. 123 (Adj. Sess.), eff. Jan. 29, 1988; 1989, No. 157 (Adj. Sess.), § 2, eff. April 30, 1990; 1999, No. 18, § 30, eff. May 13, 1999; 2007, No. 19, § 1; 2013, No. 57, § 22, eff. May 30, 2013; 2015, No. 23, § 95; 2015, No. 50, § 32, eff. June 3, 2015.)

§ 4175 Fees and costs

There shall be no filing fee or costs assessed against the consumer for using the Vermont Motor Vehicle Arbitration Board or the manufacturer’s dispute settlement mechanism. In the event an authorized franchise dealer or any of its employees, including technicians or service personnel, are called upon to testify or produce documents, repair orders, or other materials in any arbitration held before the Vermont Motor Vehicle Arbitration Board or the manufacturer’s dispute settlement mechanism, the person who requests the participation of the authorized franchise dealer or requests the production of documents must make arrangements in advance to reasonably compensate the dealer for the actual expense involved. Where a conflict arises as to actual expenses, the Board shall make that determination. In the event the consumer prevails, these costs shall be reimbursed to the consumer by the manufacturer.

(Added 1983, No. 211 (Adj. Sess.), § 1; amended 1999, No. 18, § 31, eff. May 13, 1999.)

§ 4176 Appeal from Board

(a)(1) The decision of the Board shall be final unless a motion for reconsideration is filed within 30 days of the consumer’s receipt of decision accompanied by new evidence. The Board shall allow the opposing party to respond and may reconvene the hearing if deemed necessary. The decision shall then be final and shall not be modified or vacated unless, on appeal to the Superior Court a party to the arbitration proceeding proves, by clear and convincing evidence, that:

(A) the decision was procured by corruption, fraud, or other undue means;

(B) there was evident partiality by the Board or corruption or misconduct prejudicing the rights of any party by the Board;

(D) the Board refused to postpone a hearing after being shown sufficient cause to do so or refused to hear evidence material to the controversy or otherwise conducted the hearing contrary to the rules promulgated by the Board so as to prejudice substantially the rights of a party.

(2) An application to vacate or modify a decision shall be made within 30 days after delivery of a copy of the final decision to the applicant except that if predicated upon corruption, fraud, or other undue means, it may be made within 30 days after such grounds are known or should have been known. In the event a decision is confirmed, the party who prevails shall be awarded the attorney’s fees incurred in obtaining confirmation of the decision together with all costs.

(b) When a judgment of the Superior Court affirms a decision of the Board, permission of the presiding judge shall be required for review. Review may be conditioned upon the appellant paying appellee’s appellate attorney’s fees, giving security for costs, expenses, and financial loss resulting from the passage of time for review.

(Added 1983, No. 211 (Adj. Sess.), § 1; amended 1985, No. 260 (Adj. Sess.), § 5; 1999, No. 18, § 32, eff. May 13, 1999.)

§ 4177 Unfair and deceptive acts and practices

Failure of the manufacturer, its agents, authorized dealers, or motor vehicle lessors to comply with a decision of the Board shall constitute an unfair or deceptive act or practice under chapter 63 of this title.

(Added 1983, No. 211 (Adj. Sess.), § 1; amended 1987, No. 242 (Adj. Sess.), § 7.)

§ 4178 Limitations

Nothing in this chapter shall be construed as imposing any liability on a manufacturer’s authorized dealers or creating a cause of action by a manufacturer against its authorized agents or dealers. It shall be a violation of chapter 108 of this title for a manufacturer to engage in reprisals or threats of reprisals, directly or indirectly, against any authorized dealer arising out of the dealer’s efforts to repair a motor vehicle under the provisions of this chapter.

(Added 1983, No. 211 (Adj. Sess.), § 1.)

§ 4179 Effective date; limitations

(a) This chapter shall apply to motor vehicles beginning with the model year following July 1, 1984. Any proceedings initiated under this chapter shall be commenced within one year following the expiration of the express warranty term.

(b) Nothing in this chapter shall in any way limit the rights or remedies that are otherwise available to a consumer under any other law.

(Added 1983, No. 211 (Adj. Sess.), § 1; amended 1999, No. 18, § 33, eff. May 13, 1999.)

§ 4180 Notification to consumers

The manufacturer of every motor vehicle sold in this State beginning with the model year following July 1, 1984 shall provide a clear and conspicuous written notice of the consumer’s rights under this chapter and at the time of the delivery of every new motor vehicle in this State beginning with the model year following July 1, 1984 shall provide the consumer with a stamped self-addressed notice in a form satisfactory to the Vermont Motor Vehicle Arbitration Board sufficient to notify the manufacturer of the consumer’s election to proceed under this chapter. The manufacturer shall not delegate this responsibility to its authorized dealers. The manufacturer of every new motor vehicle sold in this State beginning July 1, 1984 shall also provide a clear and conspicuous notice that informs consumers of their rights under this chapter.

(Added 1983, No. 211 (Adj. Sess.), § 1.)

§ 4181 Notice of return, title branding required; sale of defective motor vehicles prohibited; defense

(a) Any manufacturer or its agent or any dealer registered in this State who attempts to resell a motor vehicle after a final determination, adjudication, or settlement resulting in the vehicle being returned pursuant to the provisions of this chapter, or under similar laws of any other state, shall apprise prospective buyers in Vermont of such return by means of a clearly visible window sticker. Manufacturers, agents, and dealers are prohibited from reselling in Vermont any vehicle determined or adjudicated as having a serious safety defect. Notice that a vehicle has been returned pursuant to such law shall also be conspicuously printed on the motor vehicle certificate of title.

(b) A person who demonstrates both of the following shall not be subject to liability or a penalty for a violation of this section:

(1) the person acquired a motor vehicle without actual knowledge that it was returned pursuant to the provisions of this chapter or under similar laws of another state; and

(2) at the time of acquisition, the title of the motor vehicle did not bear notice of such return.

(Added 1983, No. 211 (Adj. Sess.), § 1; amended 2011, No. 164 (Adj. Sess.), § 7; 2021, No. 20, § 41.)

Chapter 116 Fantasy Sports Contests [Repealed.]

§§ 4185-4189a Repealed

[Repealed]

(Added 2017, No. 70, § 5, eff. Jan. 1, 2018; repealed by 2023, No. 63, § 5, eff. June 14, 2023.)

Chapter 117 Internet Commerce

§ 4190 Interfering with Internet ticket sales

(a) A person shall not intentionally use a computer program or other software intended to interfere with or circumvent, on a ticket seller’s website, an equitable ticket buying process established by the seller for tickets of admission to a sporting event, theatre, musical performance, or place of public entertainment or amusement of any kind.

(b) A person who violates this section, in a civil action brought by the seller, shall be subject to:

(1) appropriate equitable relief;

(2) reasonable attorney’s fees and costs;

(3) actual damages suffered; and

(4) statutory damages of up to $1,500.00 per ticket, payable to the seller.

(Added 2009, No. 143 (Adj. Sess.), § 1.)

§ 4191 Removal of booking photographs from the Internet; fees prohibited

(a) As used in this section, “booking photograph” means any photograph taken by a law enforcement office or other authorized person pursuant to 20 V.S.A. chapter 117.

(b) A person who posts or otherwise disseminates a booking photograph on the Internet shall not solicit or accept a fee or other consideration to remove, delete, correct, modify, or refrain from posting or disseminating the booking photograph if requested by the depicted person.

(c) A person who violates subsection (b) of this section shall be assessed a civil penalty of not more than $1,000.00 for the first violation and not more than $2,500.00 for each subsequent violation.

(d) A person who sustains damages or injury as a result of a violation of this section may bring an action in Superior Court for damages, injunctive relief, punitive damages in the case of a willful violation, and reasonable costs and attorney’s fees. The court may issue an award for the person’s actual damages or $500.00 for a first violation or $1,000.00 for each subsequent violation, whichever is greater. This subsection shall not limit any other claims a person who sustains damages or injury as a result of a violation of this section may have under applicable law.

(e) This section shall not be construed to limit a person’s liability under any other law.

(Added 2015, No. 62, § 4.)

Chapter 120 Bad Faith Assertions of Patent Infringement

§ 4195 Legislative findings and statement of purpose

(a) The General Assembly finds that:

(1) Vermont is striving to build an entrepreneurial and knowledge-based economy. Attracting and nurturing small- and medium-size Internet technology (“IT”) and other knowledge-based companies is an important part of this effort and will be beneficial to Vermont’s future.

(2) Patents are essential to encouraging innovation, especially in the IT and knowledge-based fields. The protections afforded by the federal patent system create an incentive to invest in research and innovation, which spurs economic growth. Patent holders have every right to enforce their patents when they are infringed, and patent enforcement litigation is necessary to protect intellectual property.

(3) The General Assembly does not wish to interfere with the good faith enforcement of patents or good faith patent litigation. The General Assembly also recognizes that Vermont is preempted from passing any law that conflicts with federal patent law.

(4) Patent litigation can be technical, complex, and expensive. The expense of patent litigation, which may cost hundreds of thousands of dollars or more, can be a significant burden on small- and medium-size companies. Vermont wishes to help its businesses avoid these costs by encouraging the most efficient resolution of patent infringement claims without conflicting with federal law.

(5) In order for Vermont companies to be able to respond promptly and efficiently to patent infringement assertions against them, it is necessary that they receive specific information regarding how their product, service, or technology may have infringed the patent at issue. Receiving such information at an early stage will facilitate the resolution of claims and lessen the burden of potential litigation on Vermont companies.

(6) Abusive patent litigation, and especially the assertion of bad faith infringement claims, can harm Vermont companies. A business that receives a letter asserting such claims faces the threat of expensive and protracted litigation and may feel that it has no choice but to settle and to pay a licensing fee, even if the claim is meritless. This is especially so for small- and medium-size companies and nonprofits that lack the resources to investigate and defend themselves against infringement claims.

(7) Not only do bad faith patent infringement claims impose a significant burden on individual Vermont businesses, they also undermine Vermont’s efforts to attract and nurture small- and medium-size IT and other knowledge-based companies. Funds used to avoid the threat of bad faith litigation are no longer available to invest, produce new products, expand, or hire new workers, thereby harming Vermont’s economy.

(b) Through this narrowly focused act, the General Assembly seeks to facilitate the efficient and prompt resolution of patent infringement claims, protect Vermont businesses from abusive and bad faith assertions of patent infringement, and build Vermont’s economy, while at the same time respecting federal law and being careful to not interfere with legitimate patent enforcement actions.

(Added 2013, No. 44, § 6; 2013, No. 47, § 2, eff. May 24, 2013.)

§ 4196 Definitions

In this chapter:

(1) “Demand letter” means a letter, e-mail, or other communication asserting or claiming that the target has engaged in patent infringement.

(2) “Target” means a Vermont person:

(A) who has received a demand letter or against whom an assertion or allegation of patent infringement has been made;

(B) who has been threatened with litigation or against whom a lawsuit has been filed alleging patent infringement; or

(C) whose customers have received a demand letter asserting that the person’s product, service, or technology has infringed a patent.

(Added 2013, No. 44, § 6; 2013, No. 47, § 2, eff. May 24, 2013.)

§ 4197 Bad faith assertions of patent infringement

(a) A person shall not make a bad faith assertion of patent infringement.

(b) A court may consider the following factors as evidence that a person has made a bad faith assertion of patent infringement:

(1) The demand letter does not contain the following information:

(A) the patent number;

(B) the name and address of the patent owner or owners and assignee or assignees, if any; and

(C) factual allegations concerning the specific areas in which the target’s products, services, and technology infringe the patent or are covered by the claims in the patent.

(2) Prior to sending the demand letter, the person fails to conduct an analysis comparing the claims in the patent to the target’s products, services, and technology, or such an analysis was done but does not identify specific areas in which the products, services, and technology are covered by the claims in the patent.

(3) The demand letter lacks the information described in subdivision (1) of this subsection, the target requests the information, and the person fails to provide the information within a reasonable period of time.

(4) The demand letter demands payment of a license fee or response within an unreasonably short period of time.

(5) The person offers to license the patent for an amount that is not based on a reasonable estimate of the value of the license.

(6) The claim or assertion of patent infringement is meritless, and the person knew, or should have known, that the claim or assertion is meritless.

(7) The claim or assertion of patent infringement is deceptive.

(8) The person or its subsidiaries or affiliates have previously filed or threatened to file one or more lawsuits based on the same or similar claim of patent infringement, and:

(A) those threats or lawsuits lacked the information described in subdivision (1) of this subsection; or

(B) the person attempted to enforce the claim of patent infringement in litigation, and a court found the claim to be meritless.

(9) Any other factor the court finds relevant.

(c) A court may consider the following factors as evidence that a person has not made a bad faith assertion of patent infringement:

(1) The demand letter contains the information described in subdivision (b)(1) of this section.

(2) Where the demand letter lacks the information described in subdivision (b)(1) of this section and the target requests the information, the person provides the information within a reasonable period of time.

(3) The person engages in a good faith effort to establish that the target has infringed the patent and to negotiate an appropriate remedy.

(4) The person makes a substantial investment in the use of the patent or in the production or sale of a product or item covered by the patent.

(5) The person is:

(A) the inventor or joint inventor of the patent or, in the case of a patent filed by and awarded to an assignee of the original inventor or joint inventor, is the original assignee; or

(B) an institution of higher education or a technology transfer organization owned or affiliated with an institution of higher education.

(6) The person has:

(A) demonstrated good faith business practices in previous efforts to enforce the patent, or a substantially similar patent; or

(B) successfully enforced the patent, or a substantially similar patent, through litigation.

(7) Any other factor the court finds relevant.

(Added 2013, No. 44, § 6; 2013, No. 47, § 2, eff. May 24, 2013.)

§ 4198 Bond

Upon motion by a target and a finding by the court that a target has established a reasonable likelihood that a person has made a bad faith assertion of patent infringement in violation of this chapter, the court shall require the person to post a bond in an amount equal to a good faith estimate of the target’s costs to litigate the claim and amounts reasonably likely to be recovered under subsection 4199(b) of this chapter, conditioned upon payment of any amounts finally determined to be due to the target. A hearing shall be held if either party so requests. A bond ordered pursuant to this section shall not exceed $250,000.00. The court may waive the bond requirement if it finds the person has available assets equal to the amount of the proposed bond or for other good cause shown.

(Added 2013, No. 44, § 6; 2013, No. 47, § 2, eff. May 24, 2013.)

§ 4199 Enforcement; remedies; damages

(a) The Attorney General shall have the same authority under this chapter to make rules, conduct civil investigations, bring civil actions, and enter into assurances of discontinuance as provided under chapter 63 of this title. In an action brought by the Attorney General under this chapter, the court may award or impose any relief available under chapter 63 of this title.

(b) A target of conduct involving assertions of patent infringement, or a person aggrieved by a violation of this chapter or by a violation of rules adopted under this chapter, may bring an action in Superior Court. A court may award the following remedies to a plaintiff who prevails in an action brought pursuant to this subsection:

(1) equitable relief;

(2) damages;

(3) costs and fees, including reasonable attorney’s fees; and

(4) exemplary damages in an amount equal to $50,000.00 or three times the total of damages, costs, and fees, whichever is greater.

(c) This chapter shall not be construed to limit rights and remedies available to the State of Vermont or to any person under any other law and shall not alter or restrict the Attorney General’s authority under chapter 63 of this title with regard to conduct involving assertions of patent infringement.

§ 4301 Definitions

The term “equity security” when used in this chapter means any stock or similar security; or any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any other security that the Commissioner of Financial Regulation shall consider to be of similar nature and consider necessary or appropriate, by such rules and regulations as he or she may prescribe in the public interest or for the protection of investors, to treat as an equity security.

(Added 1965, No. 88, § 6.)

§ 4302 Officers and stockholders; disclosure

Every person who is directly or indirectly the beneficial owner of more than ten percent of any class of any equity security of a domestic stock insurance company, or who is a director or an officer thereof, shall file in the office of the Commissioner of Financial Regulation on or before the first day of July, 1965, or within 10 days after the person becomes the beneficial owner, director, or officer, a statement in such form as the Commissioner may prescribe, of the amount of all equity securities of the company of which the person is the beneficial owner, and within 10 days after the close of each calendar month thereafter, if there has been a change in his or her ownership during the month, shall file in the office of the Commissioner a statement, in such form as the Commissioner may prescribe, indicating his or her ownership at the close of the calendar month and such changes in his or her ownership as have occurred during the calendar month.

(Added 1965, No. 88, § 1; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).)

§ 4303 Penalty

To prevent the unfair use of information that may have been obtained by the beneficial owner, director, or officer by reason of his or her relationship to the company, any profit realized by him or her from any purchase and sale, or any sale and purchase, of any equity security of the company within any period of less than six months, unless the security was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the company, irrespective of any intention on the part of the beneficial owner, director, or officer in entering into the transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding six months. Suit to recover the profit may be instituted in any court of competent jurisdiction by the company, or by the owner of any security of the company in the name and in behalf of the company if the company fails or refuses to bring suit within 60 days after request or fails diligently to prosecute it thereafter; but no such suit may be brought more than two years after the date the profit was realized. This section shall not be construed to cover any transaction where the beneficial owner was not such both at the time of the purchase and sale, or the sale and purchase, of the security involved, or any transaction or transactions that the Commissioner by rules and regulations may exempt as not comprehended within the purpose of this section.

(Added 1965, No. 88, § 2.)

§ 4304 Unlawful sales; delivery

It shall be unlawful for any such beneficial owner, director, or officer, directly, or indirectly, to sell any equity security of the company if the person selling the security or his or her principal does not own the security sold, or if owning the security, does not deliver it against the sale within 20 days thereafter, or does not within five days after the sale deposit it in the mails or other usual channels of transportation; but no person may be considered to have violated this section if he or she proves that notwithstanding the exercise of good faith he or she was unable to make delivery or deposit within that time, or that to do so would cause undue inconvenience or expense.

(Added 1965, No. 88, § 3.)

§ 4305 Exceptions

The provisions of section 4303 of this title shall not apply to any purchase and sale, or sale and purchase, and the provisions of section 4303 of this title shall not apply to any sale, of an equity security of a domestic stock insurance company not then or theretofore held by him or her in an investment account, by a dealer in the ordinary course of his or her business and incident to the establishment or maintenance by him or her of a primary or secondary market otherwise than on an exchange as defined in the Securities Exchange Act of 1934 for the security. The Commissioner may, by such rules and regulations as he or she considers necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market.

(Added 1965, No. 88, § 4.)

§ 4306 Arbitrage transactions

The provisions of sections 4302-4304 of this title shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations as the Commissioner may adopt in order to carry out the purposes of this chapter.

(Added 1965, No. 88, § 5.)

§ 4307 Federally registered and small companies excepted

The provisions of sections 4302-4304 of this title shall not apply to equity securities of a domestic stock insurance company if (1) the securities are registered, or required to be registered under section 12 of the Securities Exchange Act of 1934, as amended, or if (2) the domestic stock insurance company does not have any class of its equity securities held of record by 100 or more persons on the last business day of the year next preceding the year in which equity securities of the company would be subject to the provisions of sections 4302-4304 of this title except for the provisions of this section.

(Added 1965, No. 88, § 7.)

§ 4308 Rules and regulations of Commissioner

The Commissioner may make such rules and regulations as may be necessary for the execution of the functions vested in him or her by sections 4302-4307 of this title and may for that purpose classify domestic stock insurance companies, securities, and other persons or matters within his or her jurisdiction. No provision of sections 4302-4304 of this title imposing any liability applies to any act done or omitted in good faith in conformity with any rule or regulation of the Commissioner, notwithstanding that the rule or regulation may, after the act or omission, be amended or rescinded, or determined by judicial or other authority to be invalid for any reason.

(Added 1965, No. 88, § 8.)

Chapter 134 Transfer on Death Security Registration

§ 4351 Definitions

As used in this chapter:

(1) “Beneficiary form” means a registration of a security that indicates the present owner of the security and the intention of the owner regarding the person who will become the owner of the security upon the death of the owner.

(2) “Devisee” means any person designated in a will to receive a disposition of real or personal property.

(3) “Heirs” means those persons, including the surviving spouse, who are entitled under the statutes of intestate succession to the property of a decedent.

(4) “Person” means an individual, a corporation, an organization, or other legal entity.

(5) “Personal representative” includes executor, administrator, successor personal representative, special administrator, and persons who perform substantially the same function under the law governing their status.

(6) “Property” includes both real and personal property or any interest therein and means anything that may be the subject of ownership.

(7) “Register,” including its derivatives, means to issue a certificate showing the ownership of a certificated security or, in the case of an uncertificated security, to initiate or transfer an account showing ownership of securities.

(8) “Registering entity” means a person who originates or transfers a security title by registration and includes a broker maintaining security accounts for customers and a transfer agent or other person acting for or as an issuer of securities.

(9) “Security” means a share, participation, or other interest in property in a business or in an obligation of an enterprise or other issuer, and includes a certificated security, an uncertificated security, and a security account.

(10) “Security account” means:

(A) a reinvestment account associated with a security, a securities account with a broker, a cash balance in a brokerage account, cash, interest, earnings, or dividends earned or declared on a security in an account, a reinvestment account or a brokerage account, whether or not credited to the account before the owner’s death; or

(B) a cash balance or other property held for or due to the owner of a security as a replacement for or product of an account security, whether or not credited to the account before the owner’s death.

(1) a transferee designated in the decedent’s will or any other government instrument, as provided in the instrument;

(2) the trustee of a trust serving as the principal nonprobate instrument in the decedent’s estate plan as shown by its designation as devisee of the decedent’s residuary estate or by other facts or circumstances, to the extent of the value of the nonprobate transfer received;

(3) other nonprobate transferees, in proportion to the values received.

(d) A provision made in one instrument may direct the apportionment of the liability among the nonprobate transferees taking under that or any other governing instrument. If a provision in one instrument conflicts with a provision in another, the later one prevails.

(e) Upon due notice to a nonprobate transferee, the liability imposed by this section is enforceable in proceedings in the Probate Division of the Superior Court in this State, whether or not the transferee is located in this State.

(f) A proceeding under this section may not be commenced unless the personal representative of the decedent’s estate has received a written demand for the proceeding from the surviving spouse or a child, to the extent that statutory allowances are affected, or a creditor. If the personal representative declines or fails to commence a proceeding after demand, a person making demand may commence the proceeding in the name of the decedent’s estate, at the expense of the person making the demand and not of the estate. A personal representative who declines in good faith to commence a requested proceeding incurs no personal liability for declining.

(g) A proceeding under this section must be commenced within one year after the decedent’s death, but a proceeding on behalf of a creditor whose claim was allowed after proceedings challenging disallowance of the claim may be commenced within 60 days after final allowance of the claim.

(h) Unless a written notice asserting that a decedent’s estate is insufficient to pay allowed claims and statutory allowances has been received from the decedent’s personal representative, a trustee receiving a nonprobate transfer is released from liability under this section with respect to any assets to the trust’s beneficiaries. Each beneficiary to the extent of the distribution received becomes liable for the amount of the trustee’s liability attributable to those assets received by the beneficiary.

(Added 1999, No. 23, § 1; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.)

§ 4360 Terms, conditions, and forms for registration

(a) A registering entity offering to accept registrations in beneficiary form may establish the terms and conditions under which it will receive requests (i) for registrations in beneficiary form and (ii) for implementation of registrations in beneficiary form, including requests for cancellation of previously registered TOD beneficiary designations and requests for reregistration to effect a change of beneficiary. The terms and conditions so established may provide for proving death, avoiding or resolving any problems concerning fractional shares, designating primary and contingent beneficiaries, and substituting a named beneficiary’s descendants to take in the place of the named beneficiary in the event of the beneficiary’s death. Substitution may be indicated by appending to the name of the primary beneficiary the letters LDPS, standing for “lineal descendants per stirpes.” This designation substitutes a deceased beneficiary’s descendants who survive the owner for a beneficiary who does not so survive, the descendants to be identified and to share in accordance with the law of the beneficiary’s domicile at the owner’s death governing inheritance by descendants of an intestate. Other forms of identifying beneficiaries who are to take on one or more contingencies, and rules for providing proofs and assurances needed to satisfy reasonable concerns by registering entities regarding conditions and identities relevant to accurate implementation of registrations in beneficiary form, may be contained in a registering entity’s terms and conditions.

(b) The following are illustrations of registrations in beneficiary form that a registering entity may authorize:

(1) Sole owner-sole beneficiary: John S Brown TOD (or POD) John S Brown Jr.

(2) Multiple owners-sole beneficiary: John S Brown Mary B Brown JT TEN TOD John S Brown Jr.

(3) Multiple owners-primary and secondary (substituted) beneficiaries: John S Brown Mary B Brown JT TEN TOD John S Brown Jr SUB BENE Peter Q Brown or John S Brown Mary B Brown JT TEN TOD John S Brown Jr LDPS.

(c) At the time of registration, a registering entity shall provide to each owner of the TOD account a written disclosure statement disclosing the survivorship features and consequences of establishing the TOD account. The fact that an owner did not receive a statement shall not cause the designation of a TOD beneficiary to be ineffectual.

(Added 1999, No. 23, § 1.)

Chapter 135 Unsolicited Merchandise; Solicitation in the Guise of a Bill, Invoice, or Statement of Account

§ 4401 Rights of recipient of unsolicited goods or services; obligation of business recipient to notify seller

(a) Except as provided in subsection (b) of this section, if a seller delivers unsolicited goods to a recipient, the recipient may:

(1) refuse the unsolicited goods; or

(2) deem the unsolicited goods to be a gift and dispose of them in any manner without obligation to the seller; provided that, in the case of a recipient who is not a natural person, before disposing of the goods, the recipient shall make a reasonable effort to notify the seller that it has received the unsolicited goods.

(b) If a seller delivers goods to a recipient in error and notifies the recipient of the error within 20 days, or before the recipient has used or disposed of the unsolicited goods, whichever is sooner, then:

(1) The seller shall provide, within 20 days of the notification of error, for the pick-up or return shipment of any remaining portion of the unsolicited goods at the seller’s expense and risk, during which time the recipient shall take reasonable care of the remaining unsolicited goods. The recipient need not tender the remaining goods at any place other than the place of delivery or the location of the remaining goods at the time of the notification of error and shall have no further obligation to accommodate the seller’s schedule for pick-up or return shipment or otherwise to facilitate the recovery of the item beyond the requirements of this section. If the recipient refuses to relinquish any remaining portion of the unsolicited goods to the seller, or agrees to relinquish the remaining unsolicited goods to the seller and fails to do so, the recipient shall be liable for the cost of the unsolicited goods not relinquished to the seller.

(2) The seller may discontinue services to the recipient. The recipient shall not be liable for any services delivered or used prior to the discontinuance of service.

(1) “Recipient” means a person who receives unsolicited goods, whether or not he or she was the intended recipient of them.

(2) “Seller” means a person who delivers, renders, or causes to be delivered or rendered unsolicited goods to a recipient, whether or not the seller intends to charge the recipient for the unsolicited goods.

(3) “Unsolicited goods” means any personal property or services delivered, rendered, or caused to be delivered or rendered by a seller to a recipient that are not requested by the recipient, whether or not the recipient and the seller have an existing business relationship.

(Added 1969, No. 280 (Adj. Sess.); amended 1971, No. 235 (Adj. Sess.), § 4; 2011, No. 136 (Adj. Sess.), § 6, eff. May 18, 2012.)

§ 4402 Solicitation in the guise of a bill, invoice, or statement of account

(a) In this section:

(1)(A) “Solicitation” means a document that reasonably could be considered a bill, invoice, or statement of account due, but is in fact an offer to sell goods or services to a consumer that were not requested by the consumer.

(B) “Solicitation” does not include an offer to renew an existing agreement for the purchase of goods or services, provided that the offer specifies the date on which the existing agreement expires.

(2) For purposes of subdivision (1)(A) of this subsection, factors to determine whether a document “reasonably could be considered to be a bill, invoice, or statement of account due” may include:

(A) The document is described as a “bill,” “invoice,” “statement,” “final notice,” or similar title.

(B) The document uses the term “remit” or “pay” with respect to a dollar amount, or similar wording.

(D) The document refers to a dollar figure as an “amount due,” “amount owing,” or similar wording.

(b) It is an unfair and deceptive act and practice in commerce in violation of section 2453 of this title for a person to send to a consumer through any medium a solicitation in violation of the requirements of this section.

(c)(1) A solicitation shall bear on its face the following disclaimer in conspicuous boldface capital letters of a color prominently contrasting with the background against which it appears, including all other print on the face of the solicitation, and that are at least as large, bold, and conspicuous as any other print on the face of the solicitation but not smaller than 30-point type: “THIS IS NOT A BILL. THIS IS A SOLICITATION FOR THE SALE OF GOODS OR SERVICES. YOU ARE UNDER NO OBLIGATION TO PAY THE AMOUNT STATED UNLESS YOU ACCEPT THIS OFFER.”

(2) For purposes of subdivision (1) of this subsection, “color prominently contrasting” excludes any color, or any intensity of an otherwise included color, that does not permit legible reproduction by ordinary office photocopying equipment used under normal operating conditions and that is not at least as vivid as any other color on the face of the solicitation.

(d)(1) The disclaimer required in subsection (c) of this section shall be displayed conspicuously apart from other print on the page immediately below each portion of the solicitation that reasonably could be construed to specify a monetary amount due and payable by the recipient.

(2) The disclaimer required in subsection (c) of this section shall not be preceded, followed, or surrounded by words, symbols, or other matter that reduces its conspicuousness or that introduces or modifies the required text, such as “Legal Notice Required By Law” or similar wording.

(3) The disclaimer required in subsection (c) of this section shall not, by folding or any other means, be made unintelligible or less prominent than any other information on the face of the solicitation.

(4) If a solicitation consists of more than one page, or if any page is designed to be separated into portions, the disclaimer required in subsection (c) of this section shall be displayed in its entirety on the face of each page or portion of a page that reasonably could be considered a bill, invoice, or statement of account due as required in this subsection.

(Added 2013, No. 44, § 4.)

Chapter 136 Campgrounds

§ 4410 Campgrounds; removal

(a) Definition. A recreational campground or camping park is property where transient residence is offered or provided for seasonal or short-term vacation or recreational purposes on which may be located cabins, tents, or lean-tos, or campsites designed for temporary set-up of portable or mobile camping, recreational, or travel dwelling units, including tents, campers, and recreational vehicles such as motor homes, travel trailers, truck campers, and van campers.

(b) An owner, operator, or agent of a recreational campground or camping park may remove or cause to be removed from a recreational campground or camping park any person who does any of the following:

(1) refuses to pay registration or fees;

(2) violates any municipal or State law; or

(3) violates the published or posted rules of the recreational campground or camping park, which may include a rule that requires campers to respect the peace and quiet enjoyment of other campers and the owner, operator, or agent.

(c) A person who refuses to immediately leave the property after he or she has been told to do so by the owner, operator, or agent shall be in violation of 13 V.S.A. § 3705(a) and may be prosecuted for unlawful trespass. If any conduct involves the use of a motor vehicle, the person may be prosecuted for any applicable violation of Title 23. For the purposes of this section, the property on which a campground or camping park is located shall be considered open to the free flow and circulation of traffic. The person may be removed from the premises by a law enforcement officer on request of the owner, operator, or agent.

(d) The owner, operator, or agent shall employ reasonable means to protect any personal property left at a campground or camping park by a person who has left or has been removed. A reasonable storage fee that is published or posted may be charged for any personal property left at the campground or camping park. If the owner does not take possession of the personal property within six months of the date the property has been left at the campground, the owner, operator, or agent may dispose of it in a commercially reasonable manner and then pay to the owner the sale proceeds less any storage and sales fees incurred.

(Added 2007, No. 196 (Adj. Sess.), § 3; amended 2019, No. 48, § 1.)

Chapter 137 Residential Rental Agreements

Subchapter 1 General

§ 4451 Definitions

As used in this chapter:

(1) “Actual notice” means receipt of written notice hand-delivered or mailed to the last known address. A rebuttable presumption that the notice was received three days after mailing is created if the sending party proves that the notice was sent by first-class or certified U.S. mail.

(2) “Building, housing, and health regulations” means any law, ordinance, or governmental regulation concerning health, safety, sanitation, or fitness for habitation or concerning the construction, maintenance, operation, occupancy, use, or appearance of any premises or dwelling unit.

(3) “Dwelling unit” means a building or the part of a building that is used as a home, residence, or sleeping place by one or more persons who maintain a household.

(4) “Landlord” means the owner, lessor, or where applicable, the sublessor of a residential dwelling unit or the building of which it is a part.

(5) “Normal wear and tear” means the deterioration that occurs, based upon the reasonable use for which the rental unit is intended, without negligence, carelessness, accident, or abuse of the premises or equipment or chattels by the tenant or members of his or her household or their invitees or guests.

(6) “Premises” means a dwelling unit, its appurtenances and the building, and the grounds, areas, and facilities held out for the use of tenants generally or whose use is promised to the tenant.

(7) “Rent” means all consideration to be made to or for the benefit of the landlord under the rental agreement, not including security deposits.

(8) “Rental agreement” means all agreements, written or oral, embodying terms and conditions concerning the use and occupancy of a dwelling unit and premises.

(9) “Sublease” means a rental agreement, written or oral, embodying terms and conditions concerning the use and occupancy of a dwelling unit and premises between two tenants, a sublessor, and a sublessee.

(10) “Tenant” means a person entitled under a rental agreement to occupy a residential dwelling unit to the exclusion of others.

(Added 1985, No. 175 (Adj. Sess.), § 1; amended 2007, No. 176 (Adj. Sess.), § 44; 2015, No. 126 (Adj. Sess.), § 1.)

§ 4452 Exclusions

(a) Unless created to avoid the application of this chapter, this chapter does not apply to any of the following:

(1) occupancy at a public or private institution, operated for the purpose of providing medical, geriatric, educational, counseling, religious, or similar service;

(2) occupancy under a contract of sale of a dwelling unit or the property of which it is a part, if the occupant is the purchaser or a person who succeeds to the interest of the purchaser;

(3) occupancy by a member of a fraternal, social, or religious organization in the portion of a building operated for the benefit of the organization;

(4) transient occupancy in a hotel, motel, or lodgings during the time the occupancy is subject to a tax levied under 32 V.S.A. chapter 225;

(5) occupancy by the owner of a condominium unit or the holder of a proprietary lease in a cooperative;

(6) rental of a mobile home lot governed by 10 V.S.A. chapter 153;

(7) transient residence in a campground, which for the purposes of this chapter means any property used for seasonal or short-term vacation or recreational purposes on which are located cabins, tents, or lean-tos, or campsites designed for temporary set-up of portable or mobile camping, recreational, or travel dwelling units, including tents, campers, and recreational vehicles such as motor homes, travel trailers, truck campers, and van campers;

(8) transient occupancy in a hotel, motel, or lodgings during the time the occupant is a recipient of General Assistance or Emergency Assistance temporary housing assistance, or occupancy in a hotel or motel funded by federal Emergency Rental Assistance administered by the Department for Children and Families through September 30, 2025, regardless of whether the occupancy is subject to a tax levied under 32 V.S.A. chapter 225;

(9) occupancy of a dwelling unit without right or permission by a person who is not a tenant; or

(10) transient occupancy by an occupant placed in a hotel, motel, or lodgings in connection with health care treatment or recovery, where the occupancy is paid for by a hospital as licensed in 18 V.S.A. chapter 43, an agency designated pursuant to 18 V.S.A. § 8907, or a specialized service agency operating under an agreement entered into pursuant to 18 V.S.A. § 8912, regardless of whether the occupant is subject to a tax levied under 32 V.S.A. chapter 225.

[Subsection (b) effective until July 1, 2026; see also subsection (b) effective July 1, 2026 set out below.]

(b)(1) Notwithstanding subsections 4463(b) and 4467(b) and section 4468 of this chapter only, a recovery residence may immediately exit or transfer a resident if all of the following conditions are met:

(A) the recovery residence has developed and adopted a residential agreement:

(i) containing a written exit and transfer policy approved by the Vermont Alliance for Recovery Residences or another certifying organization approved by the Department of Health that:

(I) addresses the length of time that a bed will be held in the event of a temporary removal;

(II) establishes the criteria by which a resident can return to the recovery residence in the event of a temporary removal; and

(III) ensures a resident’s possessions will be held not less than 60 days in the event of permanent removal;

(ii) designating alternative housing arrangements for the resident in the event of an exit or transfer, including contingency plans when alternative housing arrangements are not available;

(iii) describing the recovery residence’s substance use policy, which shall exempt the use of a resident’s valid prescription medication when used as prescribed; and

(iv) indicating that by signing a residential agreement, a resident acknowledges that the recovery residence may cause the resident to be immediately exited or transferred to alternative housing if the resident violates the recovery residence’s substance use policy or engages in acts of violence that threaten the health or safety of other residents;

(B) the recovery residence has obtained the resident’s written consent to its residential agreement, reaffirmed after seven days;

(C) the resident violated the substance use policy in the residential agreement or engaged in acts of violence that threatened the health or safety of other residents; and

(D) the recovery residence has provided or arranged for a stabilization bed or other alternative temporary housing.

(2) Relapse of a substance use disorder resulting in exiting a recovery residence shall not be deemed a cause of the resident’s own homelessness for purposes of obtaining emergency housing.

(3) As used in this subsection, “recovery residence” means a shared living residence supporting persons recovering from a substance use disorder that:

(A) provides tenants with peer support and assistance accessing support services and community resources available to persons recovering from substance use disorders; and

(B) is certified by an organization approved by the Department of Health and that is either a Vermont affiliate of the National Alliance for Recovery Residences or another approved organization.

[Subsection (b) effective July 1, 2026; see also subsection (b) effective until July 1, 2026 set out above.]

(b) [Repealed.]

(Added 1985, No. 175 (Adj. Sess.), § 1; amended 1987, No. 116, § 1; 1987, No. 252 (Adj. Sess.), § 1; 2007, No. 196 (Adj. Sess.), § 1; 2015, No. 58, § E.321.3; 2015, No. 126 (Adj. Sess.), § 2; 2019, No. 177 (Adj. Sess.), § 1, eff. October. 12, 2020; 2021, No. 83 (Adj. Sess.), § 54a, eff. March 16, 2022; 2023, No. 163 (Adj. Sess.), § 3, eff. July 1, 2024; 2023, No. 163 (Adj. Sess.), § 5(a), eff. July 1, 2026.)

§ 4453 Obligations implied

Obligations imposed on landlords and tenants under this chapter shall be implied in all rental agreements.

(Added 1985, No. 175 (Adj. Sess.), § 1.)

§ 4454 Attempt to circumvent

No rental agreement shall contain any provision that attempts to circumvent or circumvents obligations and remedies established by this chapter and any such provision shall be unenforceable and void.

(Added 1985, No. 175 (Adj. Sess.), § 1.)

Subchapter 2 Residential Rental Agreements

§ 4455 Tenant obligations; payment of rent

(a) Rent is payable without demand or notice at the time and place agreed upon by the parties.

(b) An increase in rent shall take effect on the first day of the rental period following no less than 60 days’ actual notice to the tenant.

(Added 1985, No. 175 (Adj. Sess.), § 1.)

§ 4456 Tenant obligations; use and maintenance of dwelling unit

(a) The tenant shall not create or contribute to the noncompliance of the dwelling unit with applicable provisions of building, housing, and health regulations.

(b) The tenant shall conduct himself or herself and require other persons on the premises with the tenant’s consent to conduct themselves in a manner that will not disturb other tenants’ peaceful enjoyment of the premises.

(c) The tenant shall not deliberately or negligently destroy, deface, damage, or remove any part of the premises or its fixtures, mechanical systems, or furnishings or deliberately or negligently permit any person to do so.

(d) Unless inconsistent with a written rental agreement or otherwise provided by law, a tenant may terminate a tenancy by actual notice given to the landlord at least one rental payment period prior to the termination date specified in the notice.

(e) If a tenant acts in violation of this section, the landlord is entitled to recover damages, costs, and reasonable attorney’s fees, and the violation shall be grounds for termination under subsection 4467(b) of this title.

(Added 1985, No. 175 (Adj. Sess.), § 1.)

§ 4456a Residential rental application

(a) A landlord or a landlord’s agent shall not charge an application fee to any individual in order to apply to enter into a rental agreement for a residential dwelling unit. This subsection shall not be construed to prohibit a person from charging a fee to a person in order to apply to rent commercial or nonresidential property.

(b)(1) In order to conduct a background or credit check, a landlord shall accept any of the following:

(A) an original or a copy of any unexpired form of government-issued identification;

(B) an Individual Taxpayer Identification Number; or

(2) A landlord or a landlord’s agent shall not require a Social Security number for the completion of a residential rental application or refuse to accept an application due to the lack of a Social Security number.

(Added 1999, No. 115 (Adj. Sess.), § 5; amended 2025, No. 69, § 10, eff. July 1, 2025.)

§ 4456b Subleases; landlord and tenant rights and obligations

(a)(1) A landlord may condition or prohibit subleasing a dwelling unit under the terms of a written rental agreement and may require a tenant to provide written notice of the name and contact information of any sublessee occupying the dwelling unit.

(2) If the terms of a written rental agreement prohibit subleasing the dwelling unit, the landlord or tenant may bring an action for ejectment pursuant to 12 V.S.A. §§ 4761 and 4853b against a person that is occupying the dwelling unit without right or permission. This subdivision (2) shall not be construed to limit the rights and remedies available to a landlord pursuant to this chapter.

(b) In the absence of a written rental agreement, a tenant shall provide the landlord with written notice of the name and contact information of any sublessee occupying the dwelling unit.

(Added 2015, No. 126 (Adj. Sess.), § 3.)

§ 4457 Landlord obligations; habitability

(a) Warranty of habitability. In any residential rental agreement, the landlord shall be deemed to covenant and warrant to deliver over and maintain, throughout the period of the tenancy, premises that are safe, clean, and fit for human habitation and that comply with the requirements of applicable building, housing, and health regulations.

(b) Waiver. No rental agreement shall contain any provision by which the tenant waives the protections of the implied warranty of habitability. Any such waiver shall be deemed contrary to public policy and shall be unenforceable and void.

(c) Heat and water. As part of the implied warranty of habitability, the landlord shall ensure that the dwelling unit has heating facilities that are capable of safely providing a reasonable amount of heat. Every landlord who provides heat as part of the rental agreement shall at all times supply a reasonable amount of heat to the dwelling unit. The landlord shall provide an adequate amount of water to each dwelling unit properly connected with hot and cold water lines. The hot water lines shall be connected with supplied water-heating facilities that are capable of heating sufficient water to permit an adequate amount to be drawn. This subsection shall not apply to a dwelling unit intended and rented for summer occupancy or as a hunting camp.

(Added 1985, No. 175 (Adj. Sess.), § 1.)

§ 4458 Habitability; tenant remedies

(a) If the landlord fails to comply with the landlord’s obligations for habitability and, after receiving actual notice of the noncompliance from the tenant, a governmental entity or a qualified independent inspector, the landlord fails to make repairs within a reasonable time and the noncompliance materially affects health and safety, the tenant may:

(1) withhold the payment of rent for the period of the noncompliance;

(2) obtain injunctive relief;

(3) recover damages, costs, and reasonable attorney’s fees; and

(4) terminate the rental agreement on reasonable notice.

(b) Tenant remedies under this section are not available if the noncompliance was caused by the negligent or deliberate act or omission of the tenant or a person on the premises with the tenant’s consent.

(Added 1985, No. 175 (Adj. Sess.), § 1; amended 1999, No. 115 (Adj. Sess.), § 6.)

§ 4459 Minor defects; repair and deduct

(a) If within 30 days of notice, the landlord fails to repair a minor defect in order to comply with this chapter or a material provision of the rental agreement, the tenant may repair the defect and deduct from the rent the actual and reasonable cost of the work, not to exceed one-half of one month’s rent. The tenant shall provide the landlord with actual notice of the cost of the repair when the cost is deducted from the rent.

(b) The tenant remedies under this section are not available if the noncompliance was caused by the negligent or deliberate act or omission of the tenant or a person on the premises with the tenant’s consent.

(Added 1985, No. 175 (Adj. Sess.), § 1.)

§ 4460 Access

(a) A landlord may enter the dwelling unit with the tenant’s consent, which shall not be unreasonably withheld.

(b) A landlord may also enter the dwelling unit for the following purposes between the hours of 9:00 A.M. and 9:00 P.M. on no less than 48 hours’ notice:

(1) when necessary to inspect the premises;

(2) to make necessary or agreed repairs, alterations, or improvements;

(3) to supply agreed services; or

(4) to exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors.

(c) A landlord may only enter the dwelling unit without consent or notice when the landlord has a reasonable belief that there is imminent danger to any person or to property.

(Added 1985, No. 175 (Adj. Sess.), § 1.)

§ 4461 Security deposits

(a) A security deposit is any advance, deposit, or prepaid rent, however named, which is refundable to the tenant at the termination or expiration of the tenancy. The function of a security deposit is to secure the performance of a tenant’s obligations to pay rent and to maintain a dwelling unit.

(b) The landlord may retain all or a portion of the security deposit for:

(1) nonpayment of rent;

(2) damage to property of the landlord, unless the damage is the result of normal wear and tear or the result of actions or events beyond the control of the tenant;

(3) nonpayment of utility or other charges that the tenant was required to pay directly to the landlord or to a utility; and

(4) expenses required to remove from the rental unit articles abandoned by the tenant.

(c) A landlord shall return the security deposit along with a written statement itemizing any deductions to a tenant within 14 days from the date on which the landlord discovers that the tenant vacated or abandoned the dwelling unit or the date the tenant vacated the dwelling unit, provided the landlord received notice from the tenant of that date. In the case of the seasonal occupancy and rental of a dwelling unit not intended as a primary residence, the security deposit and written statement shall be returned within 60 days.

(d) The landlord shall comply with this section by hand-delivering or mailing the statement and any payment required to the last known address of the tenant.

(e) If a landlord fails to return the security deposit with a statement within 14 days, the landlord forfeits the right to withhold any portion of the security deposit. If the failure is willful, the landlord shall be liable for double the amount wrongfully withheld, plus reasonable attorney’s fees and costs.

(f) Upon termination of the landlord’s interest in the dwelling unit, the security deposit shall be transferred to the new landlord. The new landlord shall give the tenant actual notice of the new landlord’s name and address with a statement that the security deposit has been transferred to the new landlord.

(g) A town or municipality may adopt an ordinance governing security deposits on dwellings. The ordinance shall be supplemental to and not inconsistent with the minimum protections of the provisions of this section. The ordinance may not limit how a security deposit is held. The ordinance may authorize the payment of interest on a security deposit. The ordinance may provide that a housing board of review constituted pursuant to 24 V.S.A. § 5005 may hear and decide disputes related to security deposits upon request for a hearing by a landlord or tenant. The board’s actions shall be reviewable under 24 V.S.A. § 5006.

(Added 1985, No. 175 (Adj. Sess.), § 1; amended 1987, No. 116, § 2; 1991, No. 229 (Adj. Sess.), § 1; 2007, No. 176 (Adj. Sess.), § 45.)

§ 4462 Abandonment; unclaimed property

(a) A tenant has abandoned a dwelling unit if:

(1) there are circumstances that would lead a reasonable person to believe that the dwelling unit is no longer occupied as a full-time residence;

(2) rent is not current; and

(3) the landlord has made reasonable efforts to ascertain the tenant’s intentions.

(b) If the tenant abandons the dwelling unit, the tenant shall remain liable for rent until the expiration of the rental agreement. However, if the landlord rents the dwelling unit before the expiration of the rental agreement, the agreement terminates on the date of the new tenancy.

(c)(1) If any property, except trash, garbage, or refuse, is unclaimed by a tenant who has abandoned a dwelling unit, the landlord shall give written notice to the tenant mailed to the tenant’s last known address that the landlord intends to dispose of the property after 60 days if the tenant has not claimed the property and paid any reasonable storage and other fees incurred by the landlord. The landlord shall place the property in a safe, dry, secured location, but may dispose of any trash, garbage, or refuse left by the tenant. The tenant may claim the property by providing the landlord with the following within 60 days after the date of the notice:

(A) a reasonable written description of the property; and

(B) payment of the fair and reasonable cost of storage and any related reasonable expenses incurred by the landlord.

(2) If the tenant does not claim the property within the required time, the property shall become the property of the landlord. If the tenant claims the property within the required time, the landlord shall immediately make the property available to the tenant at a reasonable place and the tenant shall take possession of the property at that time and place.

(d) Any personal property remaining in the dwelling unit or leased premises after the tenant has vacated may be disposed of by the landlord without notice or liability to the tenant or owner of the personal property, provided that one of the following has occurred:

(1) The tenant provided actual notice to the landlord that the tenant has vacated the dwelling unit or leased premises.

(2) The tenant has vacated the dwelling unit or leased premises at the end of the rental agreement.

(Added 1985, No. 175 (Adj. Sess.), § 1; amended 1999, No. 115 (Adj. Sess.), § 1; 2007, No. 176 (Adj. Sess.), § 46.)

§ 4463 Illegal evictions

(a) No landlord may willfully cause, directly or indirectly, the interruption or termination of any utility service being supplied to the tenant, except for temporary interruptions for emergency repairs.

(b) No landlord may directly or indirectly deny a tenant access to and possession of the tenant’s rented or leased premises, except through proper judicial process.

(c) No landlord may directly or indirectly deny a tenant access to and possession of the tenant’s property, except through proper judicial process.

(Added 1985, No. 175 (Adj. Sess.), § 1.)

§ 4464 Remedies for illegal evictions

(a) Any tenant who sustains damage or injury as a result of an illegal eviction may bring an action for injunctive relief, damages, costs, and reasonable attorney’s fees.

(b) A court may award reasonable attorney’s fees to the landlord if, upon motion and hearing, it is determined that the action was not brought in good faith and was frivolous or intended for harassment only.

(Added 1985, No. 175 (Adj. Sess.), § 1.)

§ 4465 Retaliatory conduct prohibited

(a) A landlord of a residential dwelling unit may not retaliate by establishing or changing terms of a rental agreement or by bringing or threatening to bring an action against a tenant who:

(1) has complained to a governmental agency charged with responsibility for enforcement of a building, housing, or health regulation of a violation applicable to the premises materially affecting health and safety;

(2) has complained to the landlord of a violation of this chapter; or

(3) has organized or become a member of a tenant’s union or similar organization.

(b) If the landlord acts in violation of this section, the tenant is entitled to recover damages and reasonable attorney’s fees and has a defense in any retaliatory action for possession.

(c) If a landlord serves notice of termination of tenancy on any grounds other than for nonpayment of rent within 90 days after notice by any municipal or State governmental entity that the premises are not in compliance with applicable health or safety regulations, there is a rebuttable presumption that any termination by the landlord is in retaliation for the tenant having reported the noncompliance.

(Added 1985, No. 175 (Adj. Sess.), § 1; amended 2007, No. 176 (Adj. Sess.), § 47.)

§ 4466 Repealed

[Repealed]

1987, No. 74, § 2(b).

§ 4466 Required disclosure; model form

(a) A landlord shall disclose in advance of entering a rental agreement with a tenant whether any portion of the premises offered for rent is located in a Federal Emergency Management Agency mapped special flood hazard area. This notice shall be provided to the tenant at or before execution of the lease in a separate written document substantially in the form prescribed by the Department of Housing and Community Development pursuant to subsection (b) of this section.

(b) The Department of Housing and Community Development shall develop a model form for the notice provided under this section that shall include the information required under subsection (a) of this section.

(Added 2023, No. 181 (Adj. Sess.), § 103, eff. June 17, 2024.)

§ 4467 Termination of tenancy; notice

(a) Termination for nonpayment of rent. The landlord may terminate a tenancy for nonpayment of rent by providing actual notice to the tenant of the date on which the tenancy will terminate, which shall be at least 14 days after the date of the actual notice. The rental agreement shall not terminate if the tenant pays or tenders rent due through the end of the rental period in which payment is made or tendered. Acceptance of partial payment of rent shall not constitute a waiver of the landlord’s remedies for nonpayment of rent or an accord and satisfaction for nonpayment of rent.

(b) Termination for breach of rental agreement.

(1) The landlord may terminate a tenancy for failure of the tenant to comply with a material term of the rental agreement or with obligations imposed under this chapter by actual notice given to the tenant at least 30 days prior to the termination date specified in the notice.

(2) When termination is based on criminal activity, illegal drug activity, or acts of violence, any of which threaten the health or safety of other residents, the landlord may terminate the tenancy by providing actual notice to the tenant of the date on which the tenancy will terminate, which shall be at least 14 days from the date of the actual notice.

(c) Termination for no cause. In the absence of a written rental agreement, the landlord may terminate a tenancy for no cause as follows:

(1) If rent is payable on a monthly basis, by providing actual notice to the tenant of the date on which the tenancy will terminate, which shall be:

(A) for tenants who have resided continuously in the same premises for two years or less, at least 60 days after the date of the actual notice;

(B) for tenants who have resided continuously in the same premises for more than two years, at least 90 days after the date of the actual notice.

(2) If rent is payable on a weekly basis, by providing actual notice to the tenant of the date on which the tenancy will terminate, which shall be at least 21 days after the date of the actual notice.

(d) Termination of rental agreement when property is sold. In the absence of a written rental agreement a landlord who has contracted to sell the building may terminate a tenancy by providing actual notice to the tenant of the date on which the tenancy will terminate, which shall be at least 30 days after the date of the actual notice.

(e) Termination for no cause under terms of written rental agreement. If there is a written rental agreement, the notice to terminate for no cause shall be at least 30 days before the end or expiration of the stated term of the rental agreement if the tenancy has continued for two years or less. The notice to terminate for no cause shall be at least 60 days before the end or expiration of the term of the rental agreement if the tenancy has continued for more than two years. If there is a written week-to-week rental agreement, the notice to terminate for no cause shall be at least seven days; however, a notice to terminate for nonpayment of rent shall be as provided in subsection (a) of this section.

(f) Termination date. In all cases, the termination date shall be specifically stated in the notice.

(g) Conversion to condominium. If the building is being converted to condominiums, notice shall be given in accordance with 27 V.S.A. chapter 15, subchapter 2.

(h) Termination of shared occupancy. A rental arrangement whereby a person rents to another individual one or more rooms in his or her personal residence that includes the shared use of any of the common living spaces, such as the living room, kitchen, or bathroom, may be terminated by either party by providing actual notice to the other of the date the rental agreement shall terminate, which shall be at least 15 days after the date of actual notice if the rent is payable monthly and at least seven days after the date of actual notice if the rent is payable weekly.

(i) Multiple notices. All actual notices that are in compliance with this section shall not invalidate any other actual notice and shall be a valid basis for commencing and maintaining an action for possession pursuant to this chapter, 10 V.S.A. chapter 153, 11 V.S.A. chapter 14, or 12 V.S.A. chapter 169, notwithstanding that the notices may be based on different or unrelated grounds, dates of termination, or that the notices are sent at different times prior to or during an ejectment action. A landlord may maintain an ejectment action and rely on as many grounds for ejectment as are allowed by law at any time during the eviction process.

(j) Payment after termination; effect.

(1) A landlord’s acceptance of full or partial rent payment by or on behalf of a tenant after the termination of the tenancy for reasons other than nonpayment of rent or at any time during the ejectment action shall not result in the dismissal of an ejectment action or constitute a waiver of the landlord’s remedies to proceed with an eviction action based on any of the following:

(A) the tenant’s breach of the terms of a rental agreement pursuant to subsection (b) of this section;

(B) the tenant’s breach of the tenant’s obligations pursuant to subsections 4456(a), (b), and (c) of this title; or

(2) This subsection shall apply to 10 V.S.A. chapter 153, 11 V.S.A. chapter 14, and 12 V.S.A. chapter 169.

(k) Commencement of ejectment action. A notice to terminate a tenancy shall be insufficient to support a judgment of eviction unless the proceeding is commenced not later than 60 days from the termination date set forth in the notice.

(Added 1985, No. 175 (Adj. Sess.), § 1; amended 1999, No. 115 (Adj. Sess.), §§ 2, 2a; 2007, No. 176 (Adj. Sess.), § 48; 2009, No. 129 (Adj. Sess.), § 2; 2021, No. 20, § 42.)

§ 4468 Termination of tenancy; action for possession

If the tenant remains in possession after termination of the rental agreement without the express consent of the landlord, the landlord may bring an action for possession, damages, and costs under 12 V.S.A. chapter 169, subchapter 3.

(Added 1985, No. 175 (Adj. Sess.), § 1.)

§ 4468a Age-restricted housing; rent increase; notice

(a) Except as provided in subsection (c) of this section, an owner of privately owned age-restricted residential property within the State that is not licensed pursuant to 33 V.S.A. chapter 71 or 8 V.S.A. chapter 151 shall provide written notification on a form provided by the Department of Housing and Community Development to the Department and all the affected residents of any rent increase at the property not later than 60 days before the effective date of the proposed increase. The notice shall include all the following:

(1) the amount of the proposed rent increase;

(2) the effective date of the increase;

(3) a copy of the resident’s rights pursuant to this section; and

(4) the percentage of increase from the current base rent.

(b) If the owner fails to notify either the residents or the Department of a rent increase as required by subsection (a) of this section, the proposed rent increase shall be ineffective and unenforceable.

(c) This section shall not apply to any rent increase at any publicly subsidized affordable housing that is monitored by a State or federal agency for rent limitations.

(Added 2023, No. 181 (Adj. Sess.), § 110, eff. June 17, 2024.)

Subchapter 3 Farm Employee Housing

§ 4469 Repealed

[Repealed]

1999, No. 36, § 6, eff. February 15, 2003.

§ 4469a Termination of occupancy of farm employee housing

(a) As used in this section:

(1) “Farm employee” means an individual employed by a farm employer for farming operations.

(2) “Farm employer” means a person earning at least one-half of his or her annual gross income from the business of farming as that term is defined in Section 1.175-3 of the regulations issued by the U.S. Department of the Treasury under the U.S. Internal Revenue Code, as amended.

(3) “Housing provided as a benefit of farm employment” means housing owned or controlled by the farm employer, whether located on or off the farm premises and provided for the occupancy of the farm employee and the farm employee’s family or household members for no payment other than the farm employee’s labor. Payment of utility and fuel charges paid by the farm employee does not affect the designation of housing provided as a benefit of farm employment.

(b) Unless otherwise provided in a written employment contract, a farm employer who provides housing to a farm employee and the farm employee’s family or household members as a benefit of the employment may terminate that benefit and all rights of the employee and the employee’s family or household members to occupy the housing when the employee’s employment is terminated.

(c) The termination of the housing benefit shall be by written notice served upon the former farm employee by a law enforcement officer in accordance with Rule 4 of the Vermont Rules of Civil Procedure. The notice shall be served together with a summons and complaint seeking a writ of possession under this section to remove the former farm employee from occupancy of the farm housing. The notice shall include the following statements, in boldface print:

“Your employment and housing benefit have been terminated.

“Your employer has filed a legal proceeding in ______ County Superior Court to obtain a court order directing you and any family or household member cohabitating in the dwelling to vacate and leave the dwelling and remove all of your possessions. The address and telephone number of the court are as follows:

“The court will hold a hearing on your former employer’s request for a court order directing you to leave and vacate the dwelling. The hearing will be held on ______ at ______ in the ____ am/pm at the courthouse at the address listed above. You have the right to be served with notice of the hearing at least ten days prior to the hearing date. You have the right to appear at this hearing. At the hearing, your former employer must prove that the dwelling is needed for housing a replacement employee and that your failure to vacate is causing actual hardship.

“If you believe that your employment was terminated wrongfully, that your dwelling house was not habitable, or if you have any other claim against your former employer, you may file a counterclaim against your former employer as explained in the summons and complaint that are being served upon you with this notice.

“Filing a counterclaim against your former employer will not delay or stop the court from ordering you to leave and vacate the dwelling.

“You may wish to seek legal advice from a licensed attorney. If you believe you cannot afford an attorney, you may contact the Clerk of the court listed above for information about the availability of an attorney at public expense, although you may not be entitled to an attorney at public expense.”

(d) A farm employer shall be entitled to a show cause hearing on an expedited basis for the purpose of demonstrating that the failure of the former farm employee to vacate the farm housing is causing an actual hardship to the farm employer. The show cause hearing shall be held not less than 10 calendar days after service on the former employee of the notice described in subsection (c) of this section. The issue before the court at the hearing shall be whether the farm employer has suffered actual hardship because of the unavailability of the farm housing for a replacement employee.

(e) If the court finds that the farm employer has suffered actual hardship because of the unavailability of the farm housing for a replacement employee, the court shall enter an order approving a writ of possession, which shall be executed not earlier than five business days nor later than 30 days after the writ is served, to put the plaintiff into possession.

(f) If the court does not make a finding on behalf of the farm employer, the farm employer may seek an eviction pursuant to sections 4467 and 4468 of this title and 12 V.S.A. chapter 169, subchapter 3. In any action pursuant to this section, the farm employer may file a motion for payment of the reasonable rental value of the premises into court pursuant to 12 V.S.A. § 4853a.

(g) The right of a former farm employee to pursue any claim that he or she may have against the former farm employer by way of a counterclaim in a civil action brought pursuant to this section is expressly preserved. The assertion of a counterclaim shall not have the effect of delaying or preventing the removal of the employee from the housing, nor shall the employee be entitled to obtain injunctive relief in the form of repossession of farm housing. A former employee who prevails on a counterclaim shall be entitled to relief as provided by applicable law.

(h) Sections 4455, 4461, and 4467 of this chapter shall not apply to housing provided to a farm employee as a benefit of the employment.

(Added 2009, No. 89 (Adj. Sess.), § 2, eff. April 28, 2010; amended 2017, No. 11, § 10.)

Subchapter 4 Housing Discrimination; Domestic and Sexual Violence

§ 4470 Recodified. 2019, No. 48, § 1(b).

§ 4471 Definitions

As used in this subchapter:

(1) “Abuse” has the same meaning as in 15 V.S.A. § 1101.

(2) “Protected tenant” means a tenant who is:

(A) a victim of abuse, sexual assault, or stalking;

(B) a parent, foster parent, legal guardian, or caretaker with at least partial physical custody of a victim of abuse, sexual assault, or stalking.

(3) “Sexual assault” and “stalking” have the same meaning as in 12 V.S.A. § 5131.

(Added 2019, No. 48, § 2.)

§ 4472 Right to terminate rental agreement

(a) Notwithstanding a contrary provision of a rental agreement or of subchapter 2 of this chapter, a protected tenant may terminate a rental agreement pursuant to subsection (b) of this section without penalty or liability if he or she reasonably believes it is necessary to vacate a dwelling unit:

(1) based on a fear of imminent harm to any protected tenant due to abuse, sexual assault, or stalking; or

(2) if any protected tenant was a victim of sexual assault that occurred on the premises within the six months preceding the date of his or her notice of termination.

(b) Not less than 30 days before the date of termination, the protected tenant shall provide to the landlord:

(1) a written notice of termination; and

(2) documentation from one or more of the following sources supporting his or her reasonable belief that it is necessary to vacate the dwelling unit:

(A) a court, law enforcement, or other government agency;

(B) an abuse, sexual assault, or stalking assistance program;

(C) a legal, clerical, medical, or other professional from whom the tenant, or the minor or dependent of the tenant, received counseling or other assistance concerning abuse, sexual assault, or stalking; or

(D) a self-certification of a protected tenant’s status as a victim of abuse, sexual assault, or stalking, signed under penalty of perjury, on a standard form adopted for that purpose by:

(i) a federal or State government entity, including the federal Department of Housing and Urban Development or the Vermont Department for Children and Families; or

(ii) a nonprofit organization that provides support services to protected tenants.

(c) A notice of termination provided pursuant to subsection (b) of this section may be revoked and the rental agreement shall remain in effect if:

(1)(A) the protected tenant provides a written notice to the landlord revoking the notice of termination; and

(B) the landlord has not entered into a rental agreement with another tenant prior to the date of the revocation; or

(2)(A) the protected tenant has not vacated the premises as of the date of termination; and

(B) the landlord has not entered into a rental agreement with another tenant prior to the date of termination.

(Added 2019, No. 48, § 2.)

§ 4473 Right to change locks; other security measures

Notwithstanding any contrary provision of a rental agreement or of subchapter 2 of this chapter:

(1) Subject to subdivision (2) of this subsection, a protected tenant may request that a landlord change the locks of a dwelling unit within 48 hours following the request:

(A) based on a fear of imminent harm to any protected tenant due to abuse, sexual assault, or stalking; or

(B) if any protected tenant was a victim of sexual assault that occurred on the premises within the six months preceding the date of his or her request.

(2) If the perpetrator of abuse, sexual assault, or stalking is also a tenant in the dwelling unit, the protected tenant shall include with his or her request a copy of a court order that requires the perpetrator to leave the premises.

(3) If the landlord changes the locks as requested, the landlord shall provide a key to the new locks to each tenant of the dwelling unit, not including the perpetrator of the abuse, sexual assault, or stalking who is subject to a court order to leave the premises.

(4) If the landlord does not change the locks as requested, the protected tenant may change the locks without the landlord’s prior knowledge or permission, provided that the protected tenant shall:

(A) ensure that the new locks, and the quality of the installation, equal or exceed the quality of the original;

(B) notify the landlord of the change within 24 hours of installation; and

(5) Unless otherwise agreed to by the parties, a protected tenant is responsible for the costs of installation of new locks pursuant to this section.

(6)(A) A protected tenant may request permission of a landlord to install additional security measures on the premises, including a security system or security camera.

(B) A protected tenant:

(i) shall submit his or her request not less than seven days prior to installation;

(ii) shall ensure the quality and safety of the security measures and of their installation;

(iii) is responsible for the costs of installation and operation of the security measures; and

(iv) is liable for damages resulting from installation.

(C) A landlord shall not unreasonably refuse a protected tenant’s request to install additional security measures pursuant to this subdivision (6).

(Added 2019, No. 48, § 2.)

§ 4474 Confidentiality

An owner, landlord, or housing subsidy provider who possesses documentation or information concerning a protected tenant’s status as a victim of abuse, sexual assault, or stalking shall keep the documentation or information confidential and shall not allow or provide access to another person unless:

(1) authorized by the protected tenant;

(2) required by a court order, government regulation, or governmental audit requirement; or

(3) required as evidence in a court proceeding, provided:

(A) the documentation or information remains under seal; and

(B) use of the documentation or information is limited to a claim brought pursuant to section 4472 or 4473 of this title.

(Added 2019, No. 48, § 2.)

§ 4475 Limitation of liability; enforcement

Except in the case of gross negligence or willful misconduct, a landlord is immune from liability for damages to a protected tenant if he or she acts in good faith reliance on:

(1) the provisions of this subchapter; or

(2) information provided or action taken by a protected tenant pursuant to the provisions of this subchapter.

(Added 2019, No. 48, § 2.)

Chapter 139 Discrimination; Public Accommodations; Rental and Sale of Real Estate

§ 4500 Legislative intent

(a) The provisions of this chapter establishing legal standards, duties, and requirements with respect to persons with disabilities in places of public accommodation as defined in this chapter, except those provisions relating to remedies, are intended to implement and to be construed so as to be consistent with the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq. and regulations promulgated under that Act and are not intended to impose additional or higher standards, duties, or requirements than that Act.

(b) Subsections 4502(b) and (c) of this title shall not be construed to create or impose on governmental entities additional or higher standards, duties, or requirements than that imposed by Title II of the Americans with Disabilities Act.

(c) The provisions of this chapter shall be construed liberally to accomplish its remedial purposes, and any exceptions and exemptions to the provisions of this chapter shall be construed narrowly in order to maximize the deterrence of discriminatory behavior.

(Added 1991, No. 243 (Adj. Sess.), § 5; amended 2021, No. 20, § 43; 2021, No. 182 (Adj. Sess.), § 19, eff. July 1, 2022.)

§ 4501 Definitions

As used in this chapter:

(1) “Place of public accommodation” means any school, restaurant, store, establishment, or other facility at which services, facilities, goods, privileges, advantages, benefits, or accommodations are offered to the general public.

(2) “Disability,” with respect to an individual, means:

(A) a physical or mental impairment that limits one or more major life activities;

(B) a history or record of such an impairment; or

(3) “Physical or mental impairment” means:

(A) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; or endocrine.

(B) Any mental or psychological disorder, such as intellectual disability, organic brain syndrome, emotional or mental condition, and specific learning disabilities.

(C) The term “physical or mental impairment” includes diseases and conditions such as orthopedic, visual, speech, and deafness or being hard of hearing, cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, developmental disability, emotional disturbance, and substance use disorders, including drug addiction and alcoholism. An individual with a disability does not include any individual with a substance use disorder who, by reason of current alcohol or drug use, constitutes a direct threat to property or safety of others.

(4) “Owner” includes any person having a legal or beneficial interest in real estate that gives him or her the right to possession thereof.

(5) “Dwelling” means any building, structure, or portion thereof that is occupied as, or designed or intended for occupancy as, a residence by one or more families and any vacant land that is offered for sale or lease for the construction or location thereon of any such building, structure, or portion thereof.

(6) “Public assistance” includes any assistance provided by federal, state, or local government, including medical and housing assistance.

(7) “Auxiliary aids and services” mean the following:

(A) qualified interpreters, notetakers, computer-aided transcription services, written materials, telephone handset amplifiers, assistive listening devices and systems, hearing aid compatible telephones, closed caption decoders, open and closed captioning telecommunications devices for persons who are deaf, videotext displays, or other effective methods of making aurally delivered materials available to individuals with hearing impairments;

(B) qualified readers, taped texts, audio recordings, Braille materials, large print materials, or other effective methods of making visually delivered materials available to individuals with visual impairments;

(D) other similar services and actions.

(8) “Public accommodation” means an individual, organization, or governmental or other entity that owns, leases, leases to, or operates a place of public accommodation.

(9) “Readily achievable” means easily accomplishable and able to be carried out without much difficulty or expense. In determining whether an action is readily achievable, the factors considered in determining whether an action is an undue burden pursuant to subdivision (10) of this section apply.

(10) “Undue burden” means significant difficulty or expense. In determining whether an action would result in an undue burden, the following factors shall be considered:

(A) the nature and cost of the action needed;

(B) the overall financial resources of the site or sites involved in the action; the number of persons employed at the site; the effect on expenses and resources; legitimate safety requirements necessary for safe operation, including crime prevention measures; and any other impact of the action on the operation of the site;

(C) the geographic separateness and the administrative or fiscal relationship of the site or sites in question to any parent corporation or entity;

(D) if applicable, the overall financial resources of any parent corporation or entity; the overall size of the parent corporation or entity with respect to the number of its employees; and the number, type, and location of its facilities; and

(E) if applicable, the type of operation or operations of any parent corporation or entity, including the composition, structure, and functions of the workforce of the parent corporation or entity.

(11) “Abuse,” “sexual assault,” and “stalking” have the same meanings as in section 4471 of this title.

(12)(A) “Harass” means to engage in unwelcome conduct that detracts from, undermines, or interferes with a person’s:

(i) use of a place of public accommodation or any of the accommodations, advantages, facilities, or privileges of a place of public accommodation because of the person’s race, creed, color, national origin, citizenship, immigration status, marital status, sex, sexual orientation, gender identity, or disability; or

(ii) terms, conditions, privileges, or protections in the sale or rental of a dwelling or other real estate, or in the provision of services or facilities in connection with a dwelling or other real estate, because of the person’s race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, immigration status, or disability, or because the person intends to occupy a dwelling with one or more minor children, or because the person is a recipient of public assistance, or because the person is a victim of abuse, sexual assault, or stalking.

(B) Notwithstanding any judicial precedent to the contrary, harassing conduct need not be severe or pervasive to be unlawful pursuant to the provisions of this chapter. In determining whether conduct constitutes unlawful harassment:

(i) The determination shall be made on the basis of the record as a whole, according to the totality of the circumstances, and a single incident may constitute unlawful harassment.

(ii) Incidents that may be harassment shall be considered in the aggregate with varying types of conduct and conduct based on multiple characteristics viewed in totality rather than in isolation.

(iii) Conduct may constitute unlawful harassment, regardless of whether:

(I) the complaining person is the person being harassed;

(II) the complaining person acquiesced or otherwise submitted to or participated in the conduct;

(III) the conduct is also experienced by others outside the protected class involved in the conduct;

(IV) despite the conduct, the complaining person was able to:

(aa) use the place of public accommodation or any of the accommodations, advantages, facilities, or privileges of the place of public accommodation; or

(bb) enjoy the benefit of applicable terms, conditions, privileges, or protections in the sale or rental of the dwelling or other real estate, or to obtain services or facilities in connection with the dwelling or other real estate;

(V) the conduct resulted in a physical or psychological injury; or

(VI) the conduct occurred outside the place of public accommodation or the dwelling or other real estate.

(C) Behavior that a reasonable person with the same protected characteristic would consider to be a petty slight or trivial inconvenience shall not constitute unlawful harassment or discrimination pursuant to this chapter.

(D) The provisions of this subdivision (12) shall not apply to any action brought under this chapter pursuant to the provisions of 16 V.S.A. § 570f.

(13) “Race” includes traits associated with or perceived to be associated with race, including hair type, hair texture, hairstyles, and protective hairstyles. As used in this subdivision, the term “protective hairstyles” includes hairstyles such as individual braids, cornrows, locs, twists, Bantu knots, afros, afro puffs, and other formations, as well as wigs, headwraps, and other head coverings.

(Added 1987, No. 74, § 1; amended 1987, No. 253 (Adj. Sess.), § 1; 1989, No. 89, § 1; 1991, No. 243 (Adj. Sess.), §§ 1, 2; 2013, No. 96 (Adj. Sess.), § 31; 2019, No. 48, § 4; 2023, No. 80, § 3, eff. July 1, 2023; 2023, No. 92 (Adj. Sess.), § 1, eff. July 1, 2024; 2025, No. 18, § 24, eff. May 13, 2025; 2025, No. 69, § 11, eff. July 1, 2025.)

§ 4502 Public accommodations

(a) An owner or operator of a place of public accommodation or an agent or employee of such owner or operator shall not, because of the race, creed, color, national origin, citizenship, immigration status, marital status, sex, sexual orientation, or gender identity of any person, refuse, withhold from, or deny to that person any of the accommodations, advantages, facilities, and privileges of the place of public accommodation.

(b) An owner or operator of a place of public accommodation or his or her employee or agent shall not prohibit from entering a place of public accommodation:

(1) an individual with a disability accompanied by a service animal; or

(2) an individual who is training an animal to perform as a service animal for an individual with a disability.

(c) No individual with a disability shall be excluded from participation in or be denied the benefit of the services, facilities, goods, privileges, advantages, benefits, or accommodations or be subjected to discrimination by any place of public accommodation on the basis of his or her disability as follows:

(1) A public accommodation shall provide an individual with a disability the opportunity to participate in its services, facilities, privileges, advantages, benefits, and accommodations. It is discriminatory to offer an individual an unequal opportunity or separate benefit; however it is permissible to provide a separate benefit if that benefit is necessary to provide an individual or class of individuals an opportunity that is as effective as that provided to others.

(2) A public accommodation shall afford goods, services, facilities, privileges, advantages, and accommodations to an individual with a disability in the most integrated setting that is appropriate for the needs of the individual. Notwithstanding the existence of separate or different programs or activities, a public accommodation shall not deny an individual with a disability an opportunity to participate in such programs or activities that are not separate or different. Nothing in this subsection shall be construed to require an individual with a disability to accept an accommodation, aid, service, opportunity, or benefit that the individual chooses not to accept.

(3) A public accommodation shall not exclude or otherwise deny equal goods, services, facilities, privileges, advantages, accommodations, or other opportunities to an individual or entity because of the known disability of an individual with whom the individual or entity is known to have a relationship or association.

(4) [Repealed.]

(5) A public accommodation shall make reasonable modifications in policies, practices, or procedures when those modifications are necessary to offer goods, services, facilities, privileges, advantages, or accommodations to individuals with disabilities, unless the public accommodation can demonstrate that making the modifications would fundamentally alter the nature of the goods, services, facilities, privileges, advantages, or accommodations.

(6) A public accommodation shall take whatever steps may be necessary to ensure that no individual with a disability is excluded, denied services, segregated, or otherwise treated differently than other individuals because of the absence of auxiliary aids and services, unless the public accommodation can demonstrate that taking those steps would fundamentally alter the nature of the goods, services, facilities, privileges, advantages, or accommodations being offered or would result in an undue burden on the public accommodation.

(7) A public accommodation shall not be required to provide to individuals with disabilities personal devices, such as wheelchairs, eyeglasses, hearing aids, or readers for personal use or study, or personal services to assist with feeding, toileting, or dressing.

(8) Notwithstanding the provisions of this section, if a place of public accommodation has an architectural or communication barrier, in order to comply with this section, the public accommodation shall remove the barrier, if removal is readily achievable, or shall make its goods, services, facilities, privileges, advantages, or accommodations available through alternative methods, if those alternative methods are readily achievable. Nothing in this subsection shall be construed to alter architectural barrier removal requirements under the federal Americans with Disabilities Act and its regulations as they relate to governmental entities.

(9) Any public accommodation that offers examinations or courses related to applications, licensing, certification, or credentialing for secondary or post-secondary education, professional, or trade purposes shall offer such examinations or courses in a place and manner accessible to persons with disabilities or offer alternative accessible arrangements for such individuals.

(d) This section shall not prohibit an owner or operator of an inn, hotel, motel, or other establishment that provides lodging to transient guests, and that has five or fewer rooms for rent or hire, from restricting such accommodation on the basis of sex or marital status.

(e) It is a violation of this section for a gas station or other facility that sells gasoline or other motor vehicle fuel for sale to the public to fail to comply with the provisions of section 4110a of this title.

(f) It is a violation of this section for a public accommodation to fail to comply with the provisions or rules pertaining to public buildings pursuant to 20 V.S.A. chapter 174.

(g) This chapter shall not apply to:

(1) special education claims and issues covered by federal and State special education laws, regulations, and procedures, pursuant to 20 U.S.C. § 1404 et seq. and 16 V.S.A. chapter 101; or

(2) an insurer underwriting risks, classifying risks, or administering risks that are based on or are not inconsistent with 8 V.S.A. §§ 4724 and 4014 or other applicable State laws.

(h) This section shall not be construed to require a public accommodation to permit an individual to participate in or benefit from the services, facilities, goods, privileges, advantages, and accommodations of that public accommodation when that individual poses a direct threat to the health or safety of others. For the purposes of this subsection, “direct threat” means a significant risk to the health or safety of others that cannot be eliminated by a modification of policies, practices, or procedures or by the provision of auxiliary aids or services. In determining whether an individual poses a direct threat to the health or safety of others, a public accommodation shall make an individualized assessment based on reasonable judgment that relies on current medical knowledge or on the best available objective evidence to ascertain:

(1) the nature, duration, and severity of the risk;

(2) the probability that the potential injury will actually occur; and

(3) whether reasonable modifications of policies, practices, or procedures will mitigate the risk.

(i) Nothing in this section shall be construed to prohibit a public accommodation from excluding a person engaged in disruptive behavior that the place of public accommodation has reason to believe is the result of alcohol or illegal drug use.

(j) Notwithstanding any other provision of law, a mother may breastfeed her child in any place of public accommodation in which the mother and child would otherwise have a legal right to be.

(k) A police officer, a firefighter, or a member of a rescue squad, search and rescue squad, first response team, or ambulance corps who is accompanied by a service dog shall be permitted in any place of public accommodation, and the service dog shall be permitted to stay with its master. For the purposes of this subsection, “service dog” means a dog owned, used, or in training by any police or fire department; rescue or first response squad; ambulance corps; or search and rescue organization for the purposes of locating criminals and lost persons or detecting illegal substances, explosives, cadavers, accelerants, or school or correctional facility contraband.

(l) Notwithstanding any other provision of law, a religious organization, association, or society, or any nonprofit institution or organization operated, supervised, or controlled by or in conjunction with a religious organization, association, or society, shall not be required to provide services, accommodations, advantages, facilities, goods, or privileges to an individual if the request for such services, accommodations, advantages, facilities, goods, or privileges is related to the solemnization of a marriage or celebration of a marriage. Any refusal to provide services, accommodations, advantages, facilities, goods, or privileges in accordance with this subsection shall not create any civil claim or cause of action. This subsection shall not be construed to limit a religious organization, association, or society, or any nonprofit institution or organization operated, supervised, or controlled by or in conjunction with a religious organization, from selectively providing services, accommodations, advantages, facilities, goods, or privileges to some individuals with respect to the solemnization or celebration of a marriage but not to others.

(Added 1987, No. 74, § 1; amended 1991, No. 48, § 3; 1991, No. 135 (Adj. Sess.), § 11; 1991, No. 243 (Adj. Sess.), §§ 3, 4; 2001, No. 117 (Adj. Sess.), § 2, eff. May 28, 2002; 2003, No. 17, §§ 1, 2; 2007, No. 41, § 14; 2009, No. 3, § 11, eff. Sept. 1, 2009; 2013, No. 31, § 10; 2015, No. 23, § 144; 2025, No. 69, § 12, eff. July 1, 2025.)

§ 4503 Unfair housing practices

(a) It shall be unlawful for any person:

(1) To refuse to sell or rent, or refuse to negotiate for the sale or rental of, or otherwise make unavailable or deny, a dwelling or other real estate to any person because of the race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, immigration status, or disability of a person, or because a person intends to occupy a dwelling with one or more minor children, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking.

(2) To discriminate against, or to harass, any person in the terms, conditions, privileges, and protections of the sale or rental of a dwelling or other real estate, or in the provision of services or facilities in connection with a dwelling or other real estate, because of the race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, immigration status, or disability of a person, or because a person intends to occupy a dwelling with one or more minor children, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking.

(3) To make, print, or publish, or cause to be made, printed, or published any notice, statement, or advertisement, with respect to the sale or rental of a dwelling or other real estate that indicates any preference, limitation, or discrimination based on race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, immigration status, or disability of a person, or because a person intends to occupy a dwelling with one or more minor children, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking.

(4) To represent to any person because of the race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, immigration status, or disability of a person, or because a person intends to occupy a dwelling with one or more minor children, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking, that any dwelling or other real estate is not available for inspection, sale, or rental when the dwelling or real estate is in fact so available.

(5) To disclose to another person information regarding or relating to the status of a tenant or occupant as a victim of abuse, sexual assault, or stalking for the purpose or intent of:

(A) harassing or intimidating the tenant or occupant;

(B) retaliating against a tenant or occupant for exercising his or her rights;

(D) recovering possession of the dwelling.

(6) To discriminate against any person in the making or purchasing of loans or providing other financial assistance for real-estate-related transactions or in the selling, brokering, or appraising of residential real property, because of the race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, immigration status, or disability of a person, or because a person intends to occupy a dwelling with one or more minor children, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking.

(7) To engage in blockbusting practices, for profit, which may include inducing or attempting to induce a person to sell or rent a dwelling by representations regarding the entry into the neighborhood of a person or persons of a particular race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, immigration status, or disability of a person, or because a person intends to occupy a dwelling with one or more minor children, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking.

(8) To deny any person access to or membership or participation in any multiple listing service, real estate brokers’ organization, or other service, organization, or facility relating to the business of selling or renting dwellings, or to discriminate against any person in the terms or conditions of such access, membership, or participation, on account of race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, immigration status, or disability of a person, or because a person is a recipient of public assistance, or because a person is a victim of abuse, sexual assault, or stalking.

(9) To discriminate in the sale or rental of a dwelling because a person relies upon aids such as attendants, specially trained animals, wheelchairs, or similar appliances or devices but the owner shall not be required to modify or alter the building in any way in order to comply with this chapter. An owner shall permit, at the expense of the person with a disability, reasonable modifications of existing premises occupied or to be occupied by the person with a disability if the modifications are necessary to afford the person full enjoyment of the premises. The owner may, if reasonable, require the person to agree to restore the premises to the condition that existed before the modification, reasonable wear and tear excepted, but the owner may not require an additional security deposit for this purpose.

(10) To refuse to make reasonable accommodations in rules, policies, practices, or services when such accommodations may be necessary to afford a person with a disability equal opportunity to use and enjoy a dwelling unit, including public and common areas.

(11) To fail to comply with provisions or rules pertaining to covered multifamily dwellings, as defined in 20 V.S.A. § 2900(4) and pursuant to 20 V.S.A. chapter 174.

(12) To discriminate in land use decisions or in the permitting of housing because of race, sex, sexual orientation, gender identity, age, marital status, religious creed, color, national origin, citizenship, immigration status, disability, the presence of one or more minor children, income, or because of the receipt of public assistance, or because a person is a victim of abuse, sexual assault, or stalking, except as otherwise provided by law.

(b) The provisions of subsection (a) of this section with respect to discrimination in sales and rentals of dwellings on the basis of age or on the basis of a person’s intention to occupy with one or more minor children shall not apply to the sale or rental of a dwelling in a housing complex:

(1) intended for, and solely occupied by, persons 62 years of age or older;

(2) intended and operated for occupancy by at least one person 55 years of age or older per unit. This subsection shall only apply if the following conditions are met:

(A) the housing complex has significant facilities and services specifically designed to meet the physical or social needs of older persons, or if it is not practicable to provide those facilities and services, that the housing complex is necessary to provide important housing opportunities for older persons;

(B) at least 80 percent of the units are occupied by at least one person 55 years of age or older per unit, except that a newly constructed housing complex in which first occupancy will begin after enactment of this chapter need not comply with this subsection until 25 percent of the units are occupied; and

(C) there are written and enforced policies and procedures that demonstrate an intent by the owner or manager to provide housing for persons 55 years of age or older; or

(3) established under any federal or State program specifically designed and operated to assist elders, as defined in the federal or State program.

(c) The housing exemption in subsection (b) of this section shall not fail to apply due to persons residing in such dwellings as of July 1, 1989, who do not meet the age requirements of subsection (b) of this section, provided that new occupants of such dwellings meet the age requirements of that subsection, and that unoccupied units as of July 1, 1989 are reserved for occupancy by persons who meet the age requirements of that subsection.

(d) If required by federal law, the verification of immigration status or differential treatment on the basis of citizenship or immigration status shall not constitute a violation of subsection (a) of this section with respect to the sale and rental of dwellings.

(e) For purposes of subdivision (a)(6) of this section, it shall not constitute unlawful discrimination for a lender to consider a credit applicant’s immigration status to the extent such status has bearing on the lender’s rights and remedies regarding loan repayment and further provided such consideration is consistent with any applicable federal law or regulation.

(Added 1987, No. 74, § 1; amended 1987, No. 253 (Adj. Sess.), § 2; 1989, No. 89, § 2; 1991, No. 135 (Adj. Sess.), § 12; 2007, No. 41, § 15; 2011, No. 137 (Adj. Sess.), § 6, eff. May 14, 2012; 2013, No. 31, § 11; 2013, No. 96 (Adj. Sess.), § 32; 2019, No. 48, § 4; 2021, No. 182 (Adj. Sess.), § 20, eff. July 1, 2022; 2023, No. 80, § 4, eff. July 1, 2023; 2025, No. 69, § 13, eff. July 1, 2025.)

§ 4504 Rental of housing; exemptions

The provisions of section 4503 of this title relating to the rental of a dwelling shall not apply:

(1) If the dwelling unit is inadequate, under applicable laws and ordinances relating to occupancy, to house all persons who intend to live there.

(2) If the dwelling unit is in a building with three or fewer units and the owner or a member of the owner’s immediate family resides in one of the units, provided any notice, statement, or advertisement with respect to the unit complies with subdivision 4503(a)(3) of this title.

(3) To the refusal to rent to a person because the person is under the age of majority.

(4) To limit a landlord’s right to establish and enforce legitimate business practices necessary to protect and manage the rental property, such as the use of references. However, this subdivision shall not be used as a pretext for discrimination in violation of this section.

(5) To a religious organization, association, or society, or any nonprofit institution or organization operated, supervised, or controlled by or in conjunction with a religious organization, association, or society, that limits the sale, rental, or occupancy of dwellings that it owns or operates for other than a commercial purpose to persons of the same religion, or from giving preference to such persons, unless membership in that religion is restricted on the basis of race, color, or national origin. The religious restriction or preference must be stated in written policies and procedures of the religious organization, association, or society.

(Added 1987, No. 74, § 1; amended 1987, No. 253 (Adj. Sess.), § 3; 1989, No. 89, § 3; 2013, No. 50, § E.236.)

§ 4505 Repealed

[Repealed]

1987, No. 253 (Adj. Sess.), § 5.

§ 4506 Enforcement; civil action; retaliation prohibited

(a) A person aggrieved by a violation of this chapter may file a charge of discrimination with the Human Rights Commission pursuant to chapter 141 of this title or may bring an action for injunctive relief and compensatory and punitive damages and any other appropriate relief in the Superior Court of the county in which the violation is alleged to have occurred.

(b) The court may award costs and reasonable attorney’s fees to an aggrieved person who prevails in an action brought under subsection (a) of this section.

(c) The Human Rights Commission may bring an action in the name of the Commission to enforce the provisions of this chapter in accordance with its powers established in chapter 141 of this title.

(d) The initiation or completion of an investigation by the Human Rights Commission shall not be a condition precedent to the filing of any lawsuit for violation of this chapter.

(e) A person shall not coerce, threaten, interfere, or otherwise discriminate against any individual who:

(1) has opposed any act or practice that is prohibited under section 4502 or 4503 of this title;

(2) has lodged a complaint or has testified, assisted, or participated in any manner with the Human Rights Commission in an investigation of acts or practices prohibited by this chapter;

(3) is known by the person to be about to lodge a complaint, testify, assist, or participate in any manner in an investigation of acts or practices prohibited by this chapter;

(4) is exercising or enjoying a right granted or protected by this chapter; or

(5) is believed by the person to have acted as described in subdivisions (1) through (4) of this subsection.

(Added 1987, No. 74, § 1; amended 1987, No. 253 (Adj. Sess.), § 4; 1989, No. 89, § 4; 2013, No. 31, § 12; 2015, No. 9, § 2, eff. April 16, 2015; 2021, No. 20, § 44.)

§ 4507 Criminal penalty

A person who violates a provision of this chapter shall be fined not more than $10,000.00 per violation.

(Added 1987, No. 74, § 1; amended 2023, No. 47, § 28, eff. July 1, 2023.)

§ 4508 Repealed

[Repealed]

1989, No. 89, § 10.

Chapter 141 Human Rights Commission

§ 4551 Human Rights Commission; members; compensation

(a) The Human Rights Commission is hereby established. It shall consist of five members to be appointed by the Governor, with the advice and consent of the Senate, who shall designate one member to be its Chair. No more than three members shall be of the same political party. At least one member shall be of a racial minority.

(b) The members of the Commission shall be appointed for terms of five years each, except that of the members first appointed, the Governor shall designate one for a term of one year, one for a term of two years, one for a term of three years and one for a term of four years. A member of the Commission appointed to fill a vacancy occurring other than by expiration of a term shall be appointed only for the unexpired portion of the term. Members of the Commission shall be eligible for reappointment.

(c) A member of the Commission whose term has expired or who resigned during a term shall be eligible to act as an alternate at the request of the Executive Director of the Commission if necessary to convene a quorum of the Commission to act upon complaints pursuant to section 4554 of this title. An alternate shall only participate in the consideration of complaints at meetings attended and shall not be involved in setting the policies of the Commission.

(d) Each member of the Commission, including an alternate who is called to act, shall receive compensation as provided by 32 V.S.A. § 1010 with a maximum of $1,000.00 a year, and shall be entitled to expenses actually and necessarily incurred in the performance of his or her duties.

(e) Three members of the Commission shall constitute a quorum. Alternate members may not make up a majority of a quorum.

(Added 1987, No. 234 (Adj. Sess.), § 1; amended 2005, No. 71, § 98b; 2007, No. 192 (Adj. Sess.), § 6.000.)

§ 4552 Duties; jurisdiction

(a) The Commission shall endeavor through public education to increase awareness of the importance of full civil and human rights for each inhabitant of this State. The Commission shall also examine and evaluate generally the effectiveness of this chapter as well as the existence of practices of discrimination that detract from the enjoyment of full civil and human rights and shall recommend measures designed to protect those rights.

(b)(1) The Commission shall have jurisdiction to investigate and enforce complaints of unlawful discrimination in violation of chapter 139 of this title, discrimination in public accommodations and rental and sale of real estate. The Commission shall also have jurisdiction when the party complained against is a State agency in matters for which the Attorney General would otherwise have jurisdiction under subsection (c) of this section.

(2) In any case relating to unlawful discrimination or sexual harassment in violation of 21 V.S.A. § 495 et seq. that the Commission has jurisdiction over pursuant to this subsection, it shall include a statement setting forth the prohibition against retaliation pursuant to 21 V.S.A. § 495(a)(8) with any formal complaint that is sent to a respondent.

(c) All complaints of unlawful discrimination in violation of 21 V.S.A. §§ 495 et seq. and 710, the Fair Employment Practices Act and the provisions for workers’ compensation discrimination, respectively, and of 21 V.S.A. § 471 et seq. shall be referred to the Attorney General’s office for investigation and enforcement.

(Added 1987, No. 234 (Adj. Sess.), § 1; amended 1989, No. 150 (Adj. Sess.), § 1; 2017, No. 183 (Adj. Sess.), § 3.)

§ 4553 Powers

(a) To carry out its duties, the Commission may:

(1) Establish and maintain a principal office and such other offices within the State as it deems necessary.

(2) Meet and hold hearings at any place within the State.

(3) Appoint employees as necessary to carry out the purposes of this chapter.

(4) Administer oaths and take the testimony of any person under oath in connection with a complaint filed under section 4554 of this title.

(5) Issue subpoenas to compel testimony or access to or production of records, documents, and other evidence or possible sources of evidence or the appearance of persons, provided that the subpoena is issued pursuant to a complaint filed in accordance with section 4554 of this title and that there is reasonable cause to believe that those materials or the testimony of the person are material to the complaint. Subpoenas issued under this subdivision shall be accompanied with a notice that informs the person that the person has a right to contest the subpoena at a hearing before not less than three members of the Commission and that the person has the additional right to contest the subpoena in court. Subpoenas issued under this subdivision shall be enforced as provided in 3 V.S.A. §§ 809a and 809b.

(6)(A) Enforce conciliation agreements and prohibitions against discrimination by bringing an action in the name of the Commission seeking any of the following:

(i) Temporary or permanent injunctive relief in the public interest and for an individual aggrieved by unlawful discrimination.

(ii) The imposition of a civil penalty of not more than $10,000.00 for each violation of law, including violations of any temporary restraining order issued pursuant to this section. For an intentional and continuing violation of a court order after a date set in the order, each day of violation shall be a separate offense.

(iii) Compensatory and punitive damages on behalf of an aggrieved individual or class of individuals similarly situated.

(iv) Costs and reasonable attorney’s fees associated with the investigation and enforcement of actions; any such costs or fees recovered by the Human Rights Commission under this chapter shall be deposited in the Commission’s special fund and shall be available to the Commission to offset the costs of providing legal services.

(v) Other appropriate relief.

(vi) Trial by jury.

(B) The action may be brought in the Superior Court of the county in which the violation is alleged to have occurred or in Washington County, and the court is authorized to render all of the relief listed in this subdivision (6).

(7) Utilize voluntary and uncompensated services of private individuals and organizations for administrative and educational purposes as may from time to time be offered and needed; however, volunteers may not be used to investigate complaints.

(8) Conduct educational activities and publicize how and where to file complaints.

(b) The Human Rights Commission shall forward, on or before January 1 of each year, to the Speaker of the House and the President of the Senate an annual report on the status of Commission program operations, the number and type of calls received, complaints filed and investigated, closure of litigated and nonlitigated complaints, public educational activities undertaken, and recommendations for improved human rights advocacy and activities. 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.

(c) To carry out its duties under this chapter, the Commission shall adopt procedural and substantive rules in accordance with the provisions of 3 V.S.A. chapter 25.

(Added 187, No. 234 (Adj. Sess.), § 1; amended 1989, No. 89, § 5; 1995, No. 172 (Adj. Sess.), § 1; 2005, No. 71, § 98a; 2015, No. 131 (Adj. Sess.), § 3.)

§ 4554 Complaint; investigation and conciliation

(a) Any person who believes he or she has been subject to unlawful discrimination may file a complaint under oath with the Commission stating the facts concerning the alleged discrimination. Every complaint shall be reviewed by the staff of the Commission. If a complaint states a prima facie case, it may be accepted for investigation.

(b) An employee of the Commission may file a complaint alleging a prima facie violation of a prohibition against discrimination for the benefit of the victim of the alleged discrimination or of a described class. If at any time it is determined that a complaint filed under this subsection or under subsection (a) of this section does not state a prima facie case, it shall be dismissed.

(c) Upon receipt of such complaint under subsection (a) or (b) of this section, the Commission or its designated representative shall make every reasonable effort to resolve the matter by informal means prior to a determination whether there are reasonable grounds to believe that unlawful discrimination has occurred. The Commission or its designated representative shall conduct such preliminary investigation as it deems necessary to determine whether there are reasonable grounds to believe that unlawful discrimination has occurred. In conducting an investigation, the Commission or its designated representative shall have access at all reasonable times to premises, records, documents, individuals, and other evidence or possible sources of evidence and may examine, record, and copy those materials and take and record the testimony or statements of such persons as are reasonably necessary. The Commission shall make every reasonable effort to interview each relevant and noncumulative witness identified by a party. If a witness is interviewed, a summary of the witness statement shall be included in any report prepared in connection with the complaint. Such statement shall be taken into consideration in determining whether or not there are reasonable grounds to believe that unlawful discrimination has occurred.

(d) If, after investigation, the staff of the Commission makes a preliminary recommendation that there are no reasonable grounds to believe unlawful discrimination occurred, the parties shall be notified of this preliminary recommendation of no reasonable grounds of unlawful discrimination prior to their appearance before the full Commission. If the Commission does not find reasonable grounds to believe that unlawful discrimination has occurred, it shall enter an order so finding, and dismiss the proceeding.

(e) If the Commission finds reasonable grounds to believe that unlawful discrimination has occurred, but does not find an emergency, it shall make every reasonable effort to eliminate the discrimination by informal means such as conference, conciliation, and persuasion. If the case is disposed of by informal means in a manner satisfactory to a majority of the Commission, it shall dismiss the proceeding. If the case is not disposed of by informal means in a manner satisfactory to a majority of the Commission within six months, it shall either bring an action in Superior Court as provided in section 4553 of this title or dismiss the proceedings, unless an extension is necessary to complete ongoing good faith negotiations and all parties consent to the extension.

(f) Failure to file a complaint under this section shall not affect any other remedies available under any other provision of State or federal law, unless the other provision of law specifically so provides.

(g) The Commission shall not represent the charging party or the respondent nor shall it favor any party in its handling of a complaint.

(h) In attempting to resolve the matter informally, the Commission may transmit to a party an offer of settlement. When an offer is transmitted the Commission shall:

(1) indicate which portion of the offer represents the settlement offer of the other party and which portion represents an offer by the Commission; and

(2) state that it has made no finding nor takes a position as to the reasonableness of the party’s offer.

(Added 1987, No. 234 (Adj. Sess.), § 1; 1995, No. 172 (Adj. Sess.), § 2.)

§ 4555 Information; disclosure and confidentiality

(a)(1) Except as provided in this subsection, the Human Rights Commission’s complaint files and investigative files shall be confidential.

(2) The Commission shall make the investigative file available to the charging party, the respondent, their attorneys, and any State or federal law enforcement agency seeking to enforce anti-discrimination statutes, upon reasonable request, except that the Commission may refuse to disclose:

(A) the identities of nonparty witnesses to the investigation if good cause is shown to protect the witness’s confidentiality; or

(B) records or information the release of which may be prohibited under State or federal law absent court order.

(3) A party or entity denied information or records under subdivision (2)(A) or (B) of this subsection may seek the information or records by subpoena. The Commission and any affected person may contest the subpoena in court.

(4) Any records or information described in subdivision (2)(A) or (B) of this subsection made available to a party or entity pursuant to a confidentiality agreement or court order requiring confidentiality shall be kept confidential in accordance with the agreement or order, unless disclosure is otherwise authorized by law or court order.

(b) Nothing said or done as part of conciliation efforts under this chapter may be made a matter of public record or used as evidence in a subsequent civil action without written consent of the parties. Final settlement agreements shall be public documents and the parties shall be so informed.

(c) If the Commission determines that there are reasonable grounds to believe that discrimination has occurred, that determination and the names of the parties may be made public after the parties have been notified of the Commission’s determination. If the Commission finds that there are no reasonable grounds to find discrimination, the identity of the parties and any information that would identify the parties shall remain confidential. The Commission shall inform the parties about the provisions of this subsection. In all cases, even if the records are confidential, the facts may be used for educational purposes if sufficiently altered so that no person involved in a case can be identified.

(Added 1989, No. 89, § 6; amended 1995, No. 172 (Adj. Sess.), § 3; 2015, No. 29, § 20.)

§ 4556 Performance standards; audit

The Human Rights Commission shall adopt formal performance standards for all of the Commission’s staff.

(Added 1995, No. 172 (Adj. Sess.), § 4.)

Chapter 143 Trade Secrets

§ 4601 Definitions

As used in this chapter:

(1) “Improper means” includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.

(2) “Misappropriation” means:

(A) acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or

(B) disclosure or use of a trade secret of another without express or implied consent by a person who:

(i) used improper means to acquire knowledge of the trade secret; or

(ii) at the time of disclosure or use, knew or had reason to know that his or her knowledge of the trade secret was:

(I) derived from or through a person who had utilized improper means to acquire it;

(II) acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or

(III) derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or

(iii) before a material change of his or her position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

(3) “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:

(A) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and

(B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

(Added 1995, No. 90 (Adj. Sess.), § 1.)

§ 4602 Injunctive relief

(a) A court may enjoin actual or threatened misappropriation of a trade secret. Upon application to the court, an injunction shall be terminated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time in order to eliminate commercial advantage that otherwise would be derived from the misappropriation.

(b) In exceptional circumstances, an injunction may condition future use upon payment of a reasonable royalty for no longer than the period of time for which use could have been prohibited. Exceptional circumstances include a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation that renders a prohibitive injunction inequitable.

(Added 1995, No. 90 (Adj. Sess.), § 1; amended 2013, No. 199 (Adj. Sess.), § 17.)

§ 4603 Damages

(a)(1) Except to the extent that a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation renders a monetary recovery inequitable, a complainant is entitled to recover damages for misappropriation.

(2) Damages can include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss.

(3) In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator’s unauthorized disclosure or use of a trade secret.

(4) A court shall award a substantially prevailing party his or her costs and fees, including reasonable attorney’s fees, in an action brought pursuant to this chapter.

(b) If malicious misappropriation exists, the court may award punitive damages.

(Added 1995, No. 90 (Adj. Sess.), § 1; amended 2013, No. 199 (Adj. Sess.), § 17.)

§ 4604 Reserved

[Reserved]

§ 4605 Preservation of secrecy

In an action under this chapter, a court shall preserve the secrecy of an alleged trade secret by reasonable means, which may include granting protective orders in connection with discovery proceedings, holding in-camera hearings, sealing the records of the action, and ordering any person involved in the litigation not to disclose an alleged trade secret without prior court approval.

(Added 1995, No. 90 (Adj. Sess.), § 1.)

§ 4606 Reserved

[Reserved]

§ 4607 Effect on other law

(a) Except as provided in subsection (b) of this section, this chapter displaces conflicting tort, restitutionary, and any other law of this State providing civil remedies for misappropriation of a trade secret.

(b) This chapter does not affect:

(1) contractual remedies, whether or not based upon misappropriation of a trade secret;

(2) other civil remedies that are not based upon misappropriation of a trade secret; or

(3) criminal remedies, whether or not based upon misappropriation of a trade secret.

(Added 1995, No. 90 (Adj. Sess.), § 1; amended 2013, No. 199 (Adj. Sess.), § 17.)

§ 4608 Uniformity of application and construction

This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.

(Added 1995, No. 90 (Adj. Sess.), § 1.)

§ 4609 Time of taking effect

This chapter shall take effect on July 1, 1996 and does not apply to misappropriation occurring prior to the effective date. With respect to a continuing misappropriation that began prior to the effective date, the chapter also does not apply to the continuing misappropriation that occurs after the effective date.

(Added 1995, No. 90 (Adj. Sess.), § 1.)

Chapter 147 Uniform Prudent Investor Act

§§ 4651-4662 Repealed

[Repealed]

2009, No. 20, § 29.

Chapter 150 Securities Act

Subchapter 1 General Provisions

§ 5101 Short title

This chapter may be cited as the Vermont Uniform Securities Act (2002).

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5102 Definitions

In this chapter, unless the context otherwise requires:

(1) “Agent” means an individual, other than a broker-dealer, who represents a broker-dealer in effecting or attempting to effect purchases or sales of securities or represents an issuer in effecting or attempting to effect purchases or sales of the issuer’s securities. But a partner, officer, or director of a broker-dealer or issuer or an individual having a similar status or performing similar functions is an agent only if the individual otherwise comes within the term. The term does not include an individual excluded by rule adopted or order issued under this chapter.

(2) “Bank” means:

(A) a banking institution organized under the laws of the United States;

(B) a member bank of the Federal Reserve System;

(C) any other banking institution, whether incorporated or not, doing business under the laws of a state or of the United States, a substantial portion of the business of which consists of receiving deposits or exercising fiduciary powers similar to those permitted to be exercised by national banks under the authority of the Comptroller of the Currency pursuant to 12 U.S.C. § 92a, and that is supervised and examined by a state or federal agency having supervision over banks, and that is not operated for the purpose of evading this chapter; and

(D) a receiver, conservator, or other liquidating agent of any institution or firm included in subdivision (2)(A), (B), or (C) of this section.

(3) “Broker-dealer” means a person engaged in the business of effecting transactions in securities for the account of others or for the person’s own account. The term does not include:

(A) an agent;

(B) an issuer;

(C) a bank or savings institution if its activities as a broker-dealer are limited to those specified in subdivisions 15 U.S.C. § 78c(a)(4)(B)(i) through (vi), (viii) through (x), and (xi) if limited to unsolicited transactions; and 15 U.S.C. § 78c(a)(5)(B) and (C) or a bank that satisfies the conditions described in 15 U.S.C. § 78c(a)(4)(E);

(D) an international banking institution; or

(E) a person excluded by rule adopted or order issued under this chapter.

(4) “Commissioner” means the Commissioner of Financial Regulation.

(5) “Depository institution” means:

(A) a bank; or

(B) a savings institution, trust company, credit union, or similar institution that is organized or chartered under the laws of a state or of the United States, authorized to receive deposits, and supervised and examined by an official or agency of a state or the United States if its deposits or share accounts are insured to the maximum amount authorized by statute by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund, or a successor authorized by federal law. The term does not include:

(i) an insurance company or other organization primarily engaged in the business of insurance;

(ii) a Morris Plan bank; or

(iii) an industrial loan company that is not an “insured depository institution” as defined in section 3(c)(2) of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(c)(2), or any successor federal statute.

(6) “Federal covered investment adviser” means a person registered under 15 U.S.C. § 80b-1 et seq.

(7) “Federal covered security” means a security that is, or upon completion of a transaction will be, a covered security under 15 U.S.C. § 77r(b) or rules or regulations adopted pursuant to that provision.

(8) “Filing” means the receipt under this chapter of a record by the Commissioner or a designee of the Commissioner.

(9) “Fraud,” “deceit,” and “defraud” are not limited to common law deceit.

(10) “Guaranteed” means guaranteed as to payment of all principal and all interest.

(11) “Institutional investor” means any of the following, whether acting for itself or for others in a fiduciary capacity:

(A) a depository institution or international banking institution;

(B) an insurance company;

(D) an investment company as defined in 15 U.S.C. § 80a-1 et seq.;

(E) a broker-dealer registered under 15 U.S.C. § 78a et seq.;

(F) an employee pension, profit-sharing, or benefit plan if the plan has total assets in excess of $10,000,000.00 or its investment decisions are made by a named fiduciary, as defined in 29 U.S.C. § 1001 et seq., that is a broker-dealer registered under 15 U.S.C. § 78a et seq., an investment adviser registered or exempt from registration under 15 U.S.C. § 80a-1 et seq., an investment adviser registered under this chapter, a depository institution, or an insurance company;

(G) a plan established and maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or a political subdivision of a state for the benefit of its employees, if the plan has total assets in excess of $10,000,000.00 or its investment decisions are made by a duly designated public official or by a named fiduciary, as defined in 29 U.S.C. § 1001 et seq., that is a broker-dealer registered under 15 U.S.C. § 78a et seq., an investment adviser registered or exempt from registration under 15 U.S.C. § 80a-1 et seq., an investment adviser registered under this chapter, a depository institution, or an insurance company;

(H) a trust, if it has total assets in excess of $10,000,000.00, its trustee is a depository institution, and its participants are exclusively plans of the types identified in subdivision (11)(F) or (G) of this section, regardless of the size of their assets, except a trust that includes as participants self-directed individual retirement accounts or similar self-directed plans;

(I) an organization described in 26 U.S.C. § 501(c)(3), corporation, Massachusetts trust or similar business trust, limited liability company, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $10,000,000.00;

(J) a small business investment company licensed by the Small Business Administration under 15 U.S.C. § 681(c) with total assets in excess of $10,000,000.00;

(K) a private business development company as defined in 15 U.S.C. § 80b-2(a)(22) with total assets in excess of $10,000,000.00;

(L) a federal covered investment adviser acting for its own account;

(M) a “qualified institutional buyer” as defined in 17 C.F.R. 230.144A(a)(1), other than subdivision 17 C.F.R. 230.144A(a)(1)(i)(H);

(N) a “major U.S. institutional investor” as defined in 17 C.F.R. 240.15a-6(b)(4)(i);

(O) any other person, other than an individual, of institutional character with total assets in excess of $10,000,000.00 not organized for the specific purpose of evading this chapter; or

(P) any other person specified by rule adopted or order issued under this chapter.

(12) “Insurance company” means a company organized as an insurance company whose primary business is writing insurance or reinsuring risks underwritten by insurance companies and that is subject to supervision by the insurance commissioner or a similar official or agency of a state.

(13) “Insured” means insured as to payment of all principal and all interest.

(14) “International banking institution” means an international financial institution of which the United States is a member and whose securities are exempt from registration under 15 U.S.C. § 77a et seq.

(15) “Investment adviser” means a person that, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities. The term includes a financial planner or other person that, as an integral component of other financially related services, provides investment advice to others for compensation as part of a business or that holds itself out as providing investment advice to others for compensation. The term does not include:

(A) an investment adviser representative;

(B) a lawyer, accountant, engineer, or teacher whose performance of investment advice is solely incidental to the practice of the person’s profession;

(C) a broker-dealer or its agents whose performance of investment advice is solely incidental to the conduct of business as a broker-dealer and that does not receive special compensation for the investment advice;

(D) a publisher of a bona fide newspaper, news magazine, or business or financial publication of general and regular circulation;

(E) a federal covered investment adviser;

(F) a bank or savings institution;

(G) any other person that is excluded by 15 U.S.C. § 80b-1 et seq. from the definition of investment adviser; or

(H) any other person excluded by rule adopted or order issued under this chapter.

(16) “Investment adviser representative” means an individual employed by or associated with an investment adviser or federal covered investment adviser and who makes any recommendations or otherwise gives investment advice regarding securities, manages accounts or portfolios of clients, determines which recommendation or advice regarding securities should be given, provides investment advice or holds himself or herself out as providing investment advice, receives compensation to solicit, offer, or negotiate for the sale of or for selling investment advice, or supervises employees who perform any of the foregoing. The term does not include an individual who:

(A) performs only clerical or ministerial acts;

(B) is an agent whose performance of investment advice is solely incidental to the individual acting as an agent and who does not receive special compensation for investment advisory services;

(C) is employed by or associated with a federal covered investment adviser, unless the individual has a “place of business” in this State as that term is defined by rule adopted under 15 U.S.C. § 80b-3a, and is:

(i) an “investment adviser representative” as that term is defined by rule adopted under 15 U.S.C. § 80b-3a; or

(ii) not a “supervised person” as that term is defined in 15 U.S.C. § 80b-2(a)(25); or

(D) is excluded by rule adopted or order issued under this chapter.

(17) “Issuer” means a person that issues or proposes to issue a security, subject to the following:

(A) The issuer of a voting trust certificate, collateral trust certificate, certificate of deposit for a security, or share in an investment company without a board of directors or individuals performing similar functions is the person performing the acts and assuming the duties of depositor or manager pursuant to the trust or other agreement or instrument under which the security is issued.

(B) The issuer of an equipment trust certificate or similar security serving the same purpose as the person by which the property is or will be used or to which the property or equipment is or will be leased or conditionally sold or that is otherwise contractually responsible for assuring payment of the certificate.

(C) The issuer of a fractional undivided interest in an oil, gas, or other mineral lease or in payments out of production under a lease, right, or royalty is the owner of an interest in the lease or in payments out of production under a lease, right, or royalty, whether whole or fractional, that creates fractional interests for the purpose of sale.

(18) “Nonissuer transaction” or “nonissuer distribution” means a transaction or distribution not directly or indirectly for the benefit of the issuer.

(19) “Offer to purchase” includes an attempt or offer to obtain, or solicitation of an offer to sell, a security or interest in a security for value. The term does not include a tender offer that is subject to 15 U.S.C. § 78n(d).

(20) “Person” means an individual; corporation; business trust; estate; trust; partnership; limited liability company; association; joint venture; government; governmental subdivision, agency, or instrumentality; public corporation; or any other legal or commercial entity.

(21) “Place of business” of a broker-dealer, an investment adviser, or a federal covered investment adviser means:

(A) an office at which the broker-dealer, investment adviser, or federal covered investment adviser regularly provides brokerage or investment advice or solicits, meets with, or otherwise communicates with customers or clients; or

(B) any other location that is held out to the general public as a location at which the broker-dealer, investment adviser, or federal covered investment adviser provides brokerage or investment advice or solicits, meets with, or otherwise communicates with customers or clients.

(22) “Predecessor act” means chapter 131 of this title.

(23) “Price amendment” means the amendment to a registration statement filed under 15 U.S.C. § 77a et seq. or, if an amendment is not filed, the prospectus or prospectus supplement filed under 15 U.S.C. § 77a et seq. that includes a statement of the offering price, underwriting and selling discounts or commissions, amount of proceeds, conversion rates, call prices, and other matters dependent upon the offering price.

(24) “Principal place of business” of a broker-dealer or an investment adviser means the executive office of the broker-dealer or investment adviser from which the officers, partners, or managers of the broker-dealer or investment adviser direct, control, and coordinate the activities of the broker-dealer or investment adviser.

(25) “Record,” except in the phrases “of record,” “official record,” and “public record,” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

(26) “Sale” includes every contract of sale, contract to sell, or disposition of a security or interest in a security for value, and “offer to sell” includes every attempt or offer to dispose of, or solicitation of an offer to purchase, a security or interest in a security for value. Both terms include:

(A) a security given or delivered with, or as a bonus on account of, a purchase of securities or any other thing constituting part of the subject of the purchase and having been offered and sold for value;

(B) a gift of assessable stock involving an offer and sale; and

(C) a sale or offer of a warrant or right to purchase or subscribe to another security of the same or another issuer and a sale or offer of a security that gives the holder a present or future right or privilege to convert the security into another security of the same or another issuer, including an offer of the other security.

(27) “Securities and Exchange Commission” means the U.S. Securities and Exchange Commission.

(28) “Security” means a note; stock; treasury stock; security future; bond; debenture; evidence of indebtedness; certificate of interest or participation in a profit-sharing agreement; collateral trust certificate; preorganization certificate or subscription; transferable share; investment contract; voting trust certificate; certificate of deposit for a security; fractional undivided interest in oil, gas, or other mineral rights; put, call, straddle, option, or privilege on a security, certificate of deposit, or group or index of securities, including an interest therein or based on the value thereof; put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency; or, in general, an interest or instrument commonly known as a “security”; or a certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing. The term:

(A) includes both a certificated and an uncertificated security;

(B) does not include an insurance or endowment policy or annuity contract under which an insurance company promises to pay a fixed sum of money either in a lump sum or periodically for life or other specified period;

(C) does not include an interest in a contributory or noncontributory pension or welfare plan subject to 29 U.S.C. § 1001 et seq.;

(D) includes an investment in a common enterprise with the expectation of profits to be derived primarily from the efforts of a person other than the investor and a “common enterprise” means an enterprise in which the fortunes of the investor are interwoven with those of either the person offering the investment, a third party, or other investors; and

(E) includes as an “investment contract” among other contracts an interest in a limited partnership, a limited liability company, an investment in a viatical settlement, or similar agreement.

(29) “Self-regulatory organization” means any national securities exchange, registered securities association, clearing agency registered under 15 U.S.C. § § 78a et seq., or, solely for purposes of sections 19(b), 19(c), and 23(b) of 15 U.S.C. § 78a et seq., the Municipal Securities Rulemaking Board established under 15 U.S.C. § 78a et seq.

(30) “Sign” means with present intent to authenticate or adopt a record:

(A) to execute or adopt a tangible symbol; or

(B) to attach or logically associate with the record an electronic symbol, sound, or process.

(31) “State” means a state of the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2005, No. 122 (Adj. Sess.), §§ 9-12.)

§ 5103 References to federal statutes

15 U.S.C. § 77a et seq. (Securities Act of 1933), 15 U.S.C. § 78a et seq. (Securities Exchange Act of 1934), 15 U.S.C. § 79 et seq. (Public Utility Holding Company Act of 1935), 15 U.S.C. § 80a-1 et seq. (Investment Company Act of 1940), 15 U.S.C. § 80b-1 et seq. (Investment Advisers Act of 1940), 29 U.S.C. § 1001 et seq. (Employee Retirement Income Security Act of 1974), 12 U.S.C. § 1701 et seq. (National Housing Act), 7 U.S.C. § 1 et seq. (Commodity Exchange Act), 26 U.S.C. § 1 et seq. (Internal Revenue Code), 15 U.S.C. § 78aaa et seq. (Securities Investor Protection Act of 1970), 112 Stat. 3227 (“Securities Litigation Uniform Standards Act of 1998”), 15 U.S.C. § 661 et seq. (Small Business Investment Act of 1958), and 15 U.S.C. § 7001 et seq. (Electronic Signatures in Global and National Commerce Act) mean those statutes and the rules and regulations adopted under those statutes, as in effect on the date of enactment of this chapter, or as later amended.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5104 References to federal agencies

A reference in this chapter to an agency or department of the United States is also a reference to a successor agency or department.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5105 Electronic records and signatures

This chapter modifies, limits, and supersedes 15 U.S.C. § 7001 et seq., but does not modify, limit, or supersede 15 U.S.C. § 7001(c) or authorize electronic delivery of any of the notices described in 15 U.S.C. § 7003(b). This chapter authorizes the filing of records and signatures, when specified by provisions of this chapter or by a rule adopted or order issued under this chapter, in a manner consistent with 15 U.S.C. § 7004(a).

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

Subchapter 2 Exemptions from Registration of Securities

§ 5201 Exempt securities

The following securities are exempt from the requirements of sections 5301 through 5306 and 5504 of this chapter:

(1) A security, including a revenue obligation or a separate security as defined in 17 C.F.R. § 230.131, issued, insured, or guaranteed by the United States; by a state; by a political subdivision of a state; by a public authority, agency, or instrumentality of one or more states; by a political subdivision of one or more states; by a person controlled or supervised by and acting as an instrumentality of the United States under authority granted by the Congress; or a certificate of deposit for any of the foregoing.

(2) A security issued, insured, or guaranteed by a foreign government with which the United States maintains diplomatic relations, or any of its political subdivisions, if the security is recognized as a valid obligation by the issuer, insurer, or guarantor.

(3) A security issued by and representing or that will represent an interest in or a direct obligation of or be guaranteed by:

(A) An international banking institution.

(B) A banking institution organized under the laws of the United States; a member bank of the Federal Reserve System; or a depository institution a substantial portion of the business of which consists or will consist of receiving deposits or share accounts that are insured to the maximum amount authorized by statute by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund, or a successor authorized by federal law or exercising fiduciary powers that are similar to those permitted for national banks under the authority of the Comptroller of Currency pursuant to 12 U.S.C. § 92a.

(C) Any other depository institution, unless by rule or order the Commissioner proceeds under section 5204 of this chapter.

(4) A security issued by and representing an interest in, or a debt of, or insured or guaranteed by an insurance company authorized to do business in this State.

(5) A security issued or guaranteed by a railroad, other common carrier, public utility, or public utility holding company that is:

(A) regulated in respect to its rates and charges by the United States or a state;

(B) regulated in respect to the issuance or guarantee of the security by the United States, a state, Canada, or a Canadian province or territory; or

(C) a public utility holding company registered under 15 U.S.C. § 79 et seq. or a subsidiary of such a registered holding company within the meaning of 15 U.S.C. § 79 et seq.

(6) A federal covered security specified in 15 U.S.C. § 77r(b)(1) or by rule adopted under that provision or a security listed or approved for listing on another securities market specified by rule under this chapter; a put or a call option contract; a warrant; a subscription right on or with respect to such securities; or an option or similar derivative security on a security or an index of securities or foreign currencies issued by a clearing agency registered under 15 U.S.C. § 78a et seq. and listed or designated for trading on a national securities exchange, a facility of a national securities exchange, a facility of a national securities association registered under 15 U.S.C. § 78a et seq., or an offer or sale, of the underlying security in connection with the offer, sale, or exercise of an option or other security that was exempt when the option or other security was written or issued; or an option or a derivative security designated by the Securities and Exchange Commission under 15 U.S.C. § 78i(b).

(7) A security issued by a person organized and operated exclusively for religious, educational, benevolent, fraternal, charitable, social, athletic, or reformatory purposes, or as a chamber of commerce, and not for pecuniary profit, no part of the net earnings of which inures to the benefit of a private stockholder or other person, except that with respect to the offer or sale of a note, bond, debenture, or other evidence of indebtedness issued by such a person, a rule may be adopted under this chapter limiting the availability of this exemption by classifying securities, persons, and transactions, imposing different requirements for different classes, specifying with respect to subdivision (B) of this subdivision (7) the scope of the exemption and the grounds for denial or suspension, and requiring an issuer:

(A) to file a notice specifying the material terms of the proposed offer or sale and copies of any proposed sales and advertising literature to be used and provide that the exemption becomes effective if the Commissioner does not disallow the exemption within the period established by the rule;

(B) to file a request for exemption authorization for which a rule under this chapter may specify the scope of the exemption, the requirement of an offering statement, the filing of sales and advertising literature, the filing of consent to service of process complying with section 5611 of this chapter, and grounds for denial or suspension of the exemption; and

(8) A member’s or owner’s interest in or a retention certificate or like security given in lieu of a cash patronage dividend issued by a cooperative organized and operated as a nonprofit membership cooperative under the cooperative laws of a state, but not a member’s or owner’s interest, retention certificate, or like security sold to persons other than bona fide members of the cooperative.

(9) An equipment trust certificate with respect to equipment leased or conditionally sold to a person, if any security issued by the person would be exempt under this section or would be a federal covered security under 15 U.S.C. § 77r(b)(1).

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5202 Exempt transactions

The following transactions are exempt from the requirements of sections 5301 through 5306 and 5504 of this chapter:

(1) An isolated nonissuer transaction, whether effected by or through a broker-dealer or not.

(2) A nonissuer transaction by or through a broker-dealer registered or exempt from registration under this chapter and a resale transaction by a sponsor of a unit investment trust registered under 15 U.S.C. § 80a-1 et seq. in a security of a class that has been outstanding in the hands of the public for at least 90 days, if, at the date of the transaction:

(A) the issuer of the security is engaged in business, the issuer is not in the organizational stage or in bankruptcy or receivership, and the issuer is not a blank check, blind pool, or shell company that has no specific business plan or purpose or has indicated that its primary business plan is to engage in a merger or combination of the business with or an acquisition of an unidentified person;

(B) the security is sold at a price reasonably related to its current market price;

(C) the security does not constitute the whole or part of an unsold allotment to or a subscription or participation by the broker-dealer as an underwriter of the security or a redistribution;

(D) a nationally recognized securities manual or its electronic equivalent designated by rule adopted or order issued under this chapter or a record filed with the Securities and Exchange Commission that is publicly available contains:

(i) a description of the business and operations of the issuer;

(ii) the names of the issuer’s executive officers and the names of the issuer’s directors, if any;

(iii) an audited balance sheet of the issuer as of a date within 18 months before the date of the transaction or, in the case of a reorganization or merger when the parties to the reorganization or merger each had an audited balance sheet, a pro forma balance sheet for the combined organization; and

(iv) an audited income statement for each of the issuer’s two immediately previous fiscal years or for the period of existence of the issuer, whichever is shorter, or, in the case of a reorganization or merger when each party to the reorganization or merger had audited income statements, a pro forma income statement; and

(E) any one of the following requirements is met:

(i) the issuer of the security has a class of equity securities listed on a national securities exchange registered under 15 U.S.C. § 78a(6) or designated for trading on the National Association of Securities Dealers Automated Quotation System;

(ii) the issuer of the security is a unit investment trust registered under 15 U.S.C. § 80a-1 et seq.;

(iii) the issuer of the security, including its predecessors, has been engaged in continuous business for at least three years; or

(iv) the issuer of the security has total assets of at least $2,000,000.00 based on an audited balance sheet as of a date within 18 months before the date of the transaction or, in the case of a reorganization or merger when the parties to the reorganization or merger each had such an audited balance sheet, a pro forma balance sheet for the combined organization.

(3) A nonissuer transaction by or through a broker-dealer registered or exempt from registration under this chapter in a security of a foreign issuer that is a margin security defined in regulations or rules adopted by the Board of Governors of the Federal Reserve System.

(4) A nonissuer transaction by or through a broker-dealer registered or exempt from registration under this chapter in an outstanding security if the guarantor of the security files reports with the Securities and Exchange Commission under the reporting requirements of 15 U.S.C. § 78m or 78o(d).

(5) A nonissuer transaction by or through a broker-dealer registered or exempt from registration under this chapter in a security that:

(A) is rated at the time of the transaction by a nationally recognized statistical rating organization in one of its four highest debt rating categories; or

(B) has a fixed maturity or a fixed interest or dividend, if:

(i) a default has not occurred during the current fiscal year or within the three previous fiscal years or during the existence of the issuer and any predecessor if less than three fiscal years, in the payment of principal, interest, or dividends on the security; and

(ii) the issuer is engaged in business, is not in the organizational stage or in bankruptcy or receivership, and is not and has not been within the previous 12 months a blank check, blind pool, or shell company that has no specific business plan or purpose or has indicated that its primary business plan is to engage in a merger or combination of the business with or an acquisition of an unidentified person.

(6) A nonissuer transaction by or through a broker-dealer registered or exempt from registration under this chapter effecting an unsolicited order or offer to purchase.

(7) A nonissuer transaction executed by a bona fide pledgee without the purpose of evading this chapter.

(8) A nonissuer transaction by a federal covered investment adviser with investments under management in excess of $100,000,000.00 acting in the exercise of discretionary authority in a signed record for the account of others.

(9) A transaction in a security, whether or not the security or transaction is otherwise exempt, in exchange for one or more bona fide outstanding securities, claims, or property interests, or partly in such exchange and partly for cash, if the terms and conditions of the issuance and exchange or the delivery and exchange and the fairness of the terms and conditions have been approved by the Commissioner after a hearing.

(10) A transaction between the issuer or other person on whose behalf the offering is made and an underwriter, or among underwriters.

(11) A transaction in a note, bond, debenture, or other evidence of indebtedness secured by a mortgage or other security agreement if:

(A) the note, bond, debenture, or other evidence of indebtedness is offered and sold with the mortgage or other security agreement as a unit;

(B) a general solicitation or general advertisement of the transaction is not made; and

(C) a commission or other remuneration is not paid or given, directly or indirectly, to a person not registered under this chapter as a broker-dealer or as an agent.

(12) A transaction by an executor, administrator of an estate, sheriff, marshal, receiver, trustee in bankruptcy, guardian, or conservator.

(13) A sale or offer to sell to:

(A) an institutional investor;

(B) a federal covered investment adviser; or

(14) A sale or an offer to sell securities by or on behalf of an issuer, if the transaction is part of a single issue in which:

(A) not more than 25 purchasers are present in this State during any 12 consecutive months, other than those designated in subdivision (13) of this section;

(B) a general solicitation or general advertising is not made in connection with the offer to sell or the sale of the securities;

(C) a commission or other remuneration is not paid or given, directly or indirectly, to a person other than a broker-dealer registered under this chapter or an agent registered under this chapter for soliciting a prospective purchaser in this State; and

(D) the issuer reasonably believes that all the purchasers in this State, other than those designated in subdivision (13) of this section, are purchasing for investment.

(15) A transaction under an offer to existing security holders of the issuer, including persons that at the date of the transaction are holders of convertible securities, options, or warrants, if a commission or other remuneration, other than a standby commission, is not paid or given, directly or indirectly, for soliciting a security holder in this State;

(16) An offer to sell, but not a sale, of a security not exempt from registration under 15 U.S.C. § 77a et seq. if:

(A) a registration or offering statement or similar record as required under 15 U.S.C. § 77a et seq. has been filed, but is not effective, or the offer is made in compliance with 17 C.F.R. 230.165; and

(B) a stop order of which the offeror is aware has not been issued against the offeror by the commissioner or the Securities and Exchange Commission, and an audit, inspection, or proceeding that is public and that may culminate in a stop order is not known by the offeror to be pending.

(17) An offer to sell, but not a sale, of a security exempt from registration under 15 U.S.C. § 77a et seq. if:

(A) a registration statement has been filed under this chapter, but is not effective;

(B) a solicitation of interest is provided in a record to offerees in compliance with a rule adopted by the Commissioner under this chapter; and

(C) a stop order of which the offeror is aware has not been issued by the Commissioner under this chapter and an audit, inspection, or proceeding that may culminate in a stop order is not known by the offeror to be pending.

(18) A transaction involving the distribution of the securities of an issuer to the security holders of another person in connection with a merger, consolidation, exchange of securities, sale of assets, or other reorganization to which the issuer, or its parent or subsidiary and the other person, or its parent or subsidiary are parties.

(19) A rescission offer, sale, or purchase under section 5510 of this chapter.

(20) An offer or sale of a security to a person not a resident of this State and not present in this State if the offer or sale does not constitute a violation of the laws of the state or foreign jurisdiction in which the offeree or purchaser is present and is not part of an unlawful plan or scheme to evade this chapter.

(21) Employees’ stock purchase, savings, option, profit-sharing, pension, or similar employees’ benefit plan, including any securities, plan interests, and guarantees issued under a compensatory benefit plan or compensation contract, contained in a record, established by the issuer, its parents, its majority-owned subsidiaries, or the majority-owned subsidiaries of the issuer’s parent for the participation of their employees, including offers or sales of such securities to:

(A) directors; general partners; trustees, if the issuer is a business trust; officers; consultants; and advisors;

(B) family members who acquire such securities from those persons through gifts or domestic relations orders;

(C) former employees, directors, general partners, trustees, officers, consultants, and advisors if those individuals were employed by or providing services to the issuer when the securities were offered; and

(D) insurance agents who are exclusive insurance agents of the issuer, or the issuer’s subsidiaries or parents, or who derive more than 50 percent of their annual income from those organizations.

(22) A transaction involving:

(A) a stock dividend or equivalent equity distribution, whether the corporation or other business organization distributing the dividend or equivalent equity distribution is the issuer or not, if nothing of value is given by stockholders or other equity holders for the dividend or equivalent equity distribution other than the surrender of a right to a cash or property dividend if each stockholder or other equity holder may elect to take the dividend or equivalent equity distribution in cash, property, or stock;

(B) an act incident to a judicially approved reorganization in which a security is issued in exchange for one or more outstanding securities, claims, or property interests, or partly in such exchange and partly for cash; or

(23) A nonissuer transaction in an outstanding security by or through a broker-dealer registered or exempt from registration under this chapter, if the issuer is a reporting issuer in a foreign jurisdiction designated by this subdivision or by rule adopted or order issued under this chapter; has been subject to continuous reporting requirements in the foreign jurisdiction for not less than 180 days before the transaction; and the security is listed on the foreign jurisdiction’s securities exchange that has been designated by this subdivision or by rule adopted or order issued under this chapter, or is a security of the same issuer that is of senior or substantially equal rank to the listed security or is a warrant or right to purchase or subscribe to any of the foregoing. For purposes of this subdivision, Canada, together with its provinces and territories, is a designated foreign jurisdiction and The Toronto Stock Exchange, Inc., is a designated securities exchange. After an administrative hearing in compliance with 3 V.S.A. chapter 25 (Administrative Procedure Act), the Commissioner, by rule adopted or order issued under this chapter, may revoke the designation of a securities exchange under this subdivision, if the Commissioner finds that revocation is necessary or appropriate in the public interest and for the protection of investors.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5203 Additional exemptions and waivers

A rule adopted or order issued under this chapter may exempt a security, transaction, or offer; a rule under this chapter may exempt a class of securities, transactions, or offers from any or all of the requirements of sections 5301 through 5306 and 5504 of this chapter; and an order under this chapter may waive, in whole or in part, any or all of the conditions for an exemption or offer under sections 5201 and 5202 of this chapter.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5204 Denial, suspension, revocation, condition, or limitations of exemptions

(a) Except with respect to a federal covered security or a transaction involving a federal covered security, an order under this chapter may deny, suspend application of, condition, limit, or revoke an exemption created under subdivision 5201(3)(C), (7), or (8) or section 5202 of this chapter or an exemption or waiver created under section 5203 of this chapter with respect to a specific security, transaction, or offer. An order under this section may be issued only pursuant to the procedures in subsection 5306(d) or section 5604 of this chapter and only prospectively.

(b) A person does not violate sections 5301, 5303 through 5306, 5504, or 5510 of this chapter by an offer to sell, an offer to purchase, a sale, or a purchase effected after the entry of an order issued under this section if the person did not know, and in the exercise of reasonable care could not have known, of the order.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

Subchapter 3 Registration of Securities and Notice Filing of Federal Covered Securities

§ 5301 Securities registration requirement

It is unlawful for a person to offer or sell a security in this State unless:

(1) the security is a federal covered security;

(2) the security, transaction, or offer is exempted from registration under sections 5201 through 5203 of this chapter; or

(3) the security is registered under this chapter.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5302 Notice filing

(a) With respect to a federal covered security, as defined in 15 U.S.C. § 77r(b)(2), that is not otherwise exempt under sections 5201 through 5203 of this title, a rule adopted or an order issued under this chapter may require the filing of any or all of the following records:

(1) before the initial offer of a federal covered security in this State, all records that are part of a federal registration statement filed with the Securities and Exchange Commission under 15 U.S.C. § 77a et seq. and a consent to service of process complying with section 5611 of this chapter signed by the issuer and the payment of a registration fee as set forth in subsection (e) or (f) of this section;

(2) after the initial offer of the federal covered security in this State, all records that are part of an amendment to a federal registration statement filed with the Securities and Exchange Commission under 15 U.S.C. § 77a et seq.; and

(3) to the extent necessary or appropriate to compute fees, a report of the value of the federal covered securities sold or offered to persons present in this State in such form and at such time as the Commissioner may prescribe if the State-specific sales data are not included and available in records filed with the Securities and Exchange Commission.

(b) A notice filing under subsection (a) of this section is effective for one year from the date the notice filing is accepted as complete by the Office of the Commissioner. On or before expiration, the issuer may renew a notice filing by filing a copy of those records filed by the issuer with the Securities and Exchange Commission that are required by rule or order under this chapter to be filed and by paying an annual renewal fee as set forth in subsection (e) or (f) of this section. A previously filed consent to service of process complying with section 5611 of this title may be incorporated by reference in a renewal. A renewed notice filing becomes effective upon the expiration of the filing being renewed.

(c) With respect to a security that is a federal covered security under 15 U.S.C. § 77r(b)(4)(F), a rule under this chapter may require a notice filing by or on behalf of an issuer to include a copy of Form D, including the Appendix, as promulgated by the Securities and Exchange Commission, and a consent to service of process complying with section 5611 of this chapter signed by the issuer not later than 15 days after the first sale of the federal covered security in this State and the payment of a fee as set forth in subsection (e) of this section. The notice filing shall be effective for one year from the date the notice filing is accepted as complete by the Office of the Commissioner. On or before expiration, the issuer may annually renew a notice filing by filing a copy of those records filed by the issuer with the Securities and Exchange Commission that are required by rule or order under this chapter to be filed and by paying an annual renewal fee as set forth in subsection (e) of this section.

(d) Subject to the provisions of 15 U.S.C. § 77r(c)(2) and any rules adopted thereunder, with respect to any security that is a federal covered security under 15 U.S.C. § 77r(b)(3) or (4)(A)-(E) and (G) and that is not otherwise exempt under sections 5201 through 5203 of this title, a rule adopted or order issued under this chapter may require any or all of the following with respect to such federal covered securities, at such time as the Commissioner may deem appropriate:

(1) The filing of documents as deemed appropriate by the Commissioner.

(2) The filing of a consent to service of process complying with section 5611 of this chapter.

(3) The payment of fees as set forth in subsection (e) of this section, including fees for renewal of a notice filing, as appropriate. The notice filing shall be effective for one year from the date the notice filing is accepted as complete by the office of the Commissioner.

(e) At the time of the filing of the information prescribed in subsection (a), (b), (c), or (d) of this section, except investment companies subject to 15 U.S.C. § 80a-1 et seq., the issuer shall pay to the Commissioner a fee of $820.00. The fee is nonrefundable.

(f) Investment companies subject to 15 U.S.C. § 80a-1 et seq. shall pay to the Commissioner an initial notice filing fee of $2,275.00 and an annual renewal fee of $2,025.00 for each portfolio or class of investment company securities for which a notice filing is submitted.

(g) Nothing in this section shall be construed to require the notice filing or payment of notice filing fees with respect to variable annuities or variable life insurance products.

(h) Except with respect to a federal covered security under 15 U.S.C. § 77r(b)(1), if the Commissioner finds that there is a failure to comply with a notice or fee requirement of this section, the Commissioner may issue a stop order suspending the offer and sale of a federal covered security in this State. If the deficiency is corrected, the stop order is void as of the time of its issuance and no penalty may be imposed by the Commissioner.

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2007, No. 49, § 28; 2007, No. 153 (Adj. Sess.), § 29; 2011, No. 78 (Adj. Sess.), § 32, eff. April 2, 2012; 2015, No. 149 (Adj. Sess.), § 33; 2017, No. 80, § 6; 2021, No. 139 (Adj. Sess.), § 2, eff. May 27, 2022; 2021, No. 138 (Adj. Sess.), § 12, eff. July 1, 2022; 2023, No. 113 (Adj. Sess.), §§ F.101, F.102, eff. July 1, 2024.)

§ 5303 Securities registration by coordination

(a) A security for which a registration statement has been filed under 15 U.S.C. § 77a et seq. in connection with the same offering may be registered by coordination under this section.

(b) A registration statement and accompanying records under this section must contain or be accompanied by the following records in addition to the information specified in section 5305 of this chapter and a consent to service of process complying with section 5611 of this chapter:

(1) a copy of the latest form of prospectus filed under 15 U.S.C. § 77a et seq.;

(2) a copy of the articles of incorporation and bylaws or their substantial equivalents currently in effect; a copy of any agreement with or among underwriters; a copy of any indenture or other instrument governing the issuance of the security to be registered; and a specimen, copy, or description of the security that is required by rule adopted or order issued under this chapter;

(3) copies of any other information or any other records filed by the issuer under 15 U.S.C. § 77a et seq. requested by the Commissioner; and

(4) an undertaking to forward each amendment to the federal prospectus, other than an amendment that delays the effective date of the registration statement, promptly after it is filed with the Securities and Exchange Commission.

(c) A registration statement under this section becomes effective simultaneously with or subsequent to the federal registration statement when both the following conditions are satisfied:

(1) the issuer or applicant and the Commissioner or the Commissioner’s designee have not mutually agreed to delay effectiveness for a specified period of time, or a stop order issued under subsection (d) of this section or section 5306 of this chapter or by the Securities and Exchange Commission is not in effect and a proceeding is not pending against the issuer under section 5306 of this chapter; and

(2) the registration statement has been on file for at least 20 days or a shorter period provided by rule adopted or order issued under this chapter.

(d) The registrant shall promptly notify the Commissioner in a record of the date when the federal registration statement becomes effective and the content of any price amendment and shall promptly file a record containing the price amendment. If the notice is not timely received, the Commissioner may issue a stop order, without prior notice or hearing, retroactively denying effectiveness to the registration statement or suspending its effectiveness until compliance with this section. The Commissioner shall promptly notify the registrant of an order by telegram, telephone, or electronic means and promptly confirm this notice by a record. If the registrant subsequently complies with the notice requirements of this section, the stop order is void as of the date of its issuance.

(e) If the federal registration statement becomes effective before each of the conditions in this section is satisfied or is waived by the Commissioner, the registration statement is automatically effective under this chapter when all the conditions are satisfied or waived. If the registrant notifies the Commissioner of the date when the federal registration statement is expected to become effective, the Commissioner shall promptly notify the registrant by telegram, telephone, or electronic means and promptly confirm this notice by a record, indicating whether all the conditions are satisfied or waived and whether the Commissioner intends the institution of a proceeding under section 5306 of this chapter. The notice by the Commissioner does not preclude the institution of such a proceeding.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5304 Securities registration by qualification

(a) A security may be registered by qualification under this section.

(b) A registration statement under this section must contain the information or records specified in section 5305 of this chapter, a consent to service of process complying with section 5611 of this chapter, and, if required by rule adopted under this chapter, the following information or records:

(1) with respect to the issuer and any significant subsidiary, its name, address, and form of organization; the state or foreign jurisdiction and date of its organization; the general character and location of its business; a description of its physical properties and equipment; and a statement of the general competitive conditions in the industry or business in which it is or will be engaged;

(2) with respect to each director and officer of the issuer, and other person having a similar status or performing similar functions, the person’s name, address, and principal occupation for the previous five years; the amount of securities of the issuer held by the person as of the 30th day before the filing of the registration statement; the amount of the securities covered by the registration statement to which the person has indicated an intention to subscribe; and a description of any material interest of the person in any material transaction with the issuer or a significant subsidiary effected within the previous three years or proposed to be effected;

(3) with respect to persons covered by subdivision (2) of this subsection, the aggregate sum of the remuneration paid to those persons during the previous 12 months and estimated to be paid during the next 12 months, directly or indirectly, by the issuer, and all predecessors, parents, subsidiaries, and affiliates of the issuer;

(4) with respect to a person owning of record or owning beneficially, if known, 10 percent or more of the outstanding shares of any class of equity security of the issuer, the information specified in subdivision (2) of this subsection other than the person’s occupation;

(5) with respect to a promoter, if the issuer was organized within the previous three years, the information or records specified in subdivision (2) of this subsection, any amount paid to the promoter within that period or intended to be paid to the promoter, and the consideration for the payment;

(6) with respect to a person on whose behalf any part of the offering is to be made in a nonissuer distribution, the person’s name and address; the amount of securities of the issuer held by the person as of the date of the filing of the registration statement; a description of any material interest of the person in any material transaction with the issuer or any significant subsidiary effected within the previous three years or proposed to be effected; and a statement of the reasons for making the offering;

(7) the capitalization and long-term debt, on both a current and pro forma basis, of the issuer and any significant subsidiary, including a description of each security outstanding or being registered or otherwise offered, and a statement of the amount and kind of consideration, whether in the form of cash, physical assets, services, patents, goodwill, or anything else of value, for which the issuer or any subsidiary has issued its securities within the previous two years or is obligated to issue its securities;

(8) the kind and amount of securities to be offered; the proposed offering price or the method by which it is to be computed; any variation at which a proportion of the offering is to be made to a person or class of persons other than the underwriters, with a specification of the person or class; the basis on which the offering is to be made if otherwise than for cash; the estimated aggregate underwriting and selling discounts or commissions and finders’ fees, including separately cash, securities, contracts, or anything else of value to accrue to the underwriters or finders in connection with the offering or, if the selling discounts or commissions are variable, the basis of determining them and their maximum and minimum amounts; the estimated amounts of other selling expenses, including legal, engineering, and accounting charges; the name and address of each underwriter and each recipient of a finder’s fee; a copy of any underwriting or selling group agreement under which the distribution is to be made or the proposed form of any such agreement whose terms have not yet been determined; and a description of the plan of distribution of any securities that are to be offered otherwise than through an underwriter;

(9) the estimated monetary proceeds to be received by the issuer from the offering; the purposes for which the proceeds are to be used by the issuer; the estimated amount to be used for each purpose; the order or priority in which the proceeds will be used for the purposes stated; the amounts of any funds to be raised from other sources to achieve the purposes stated; the sources of the funds; and, if a part of the proceeds is to be used to acquire property, including goodwill, otherwise than in the ordinary course of business, the names and addresses of the vendors, the purchase price, the names of any persons that have received commissions in connection with the acquisition, and the amounts of the commissions and other expenses in connection with the acquisition, including the cost of borrowing money to finance the acquisition;

(10) a description of any stock options or other security options outstanding, or to be created in connection with the offering, and the amount of those options held or to be held by each person required to be named in subdivisions (2), (4), (5), (6), or (8) of this subsection and by any person that holds or will hold 10 percent or more in the aggregate of those options;

(11) the dates of, parties to, and general effect concisely stated of each managerial or other material contract made or to be made otherwise than in the ordinary course of business to be performed in whole or in part at or after the filing of the registration statement or that was made within the previous two years, and a copy of the contract;

(12) a description of any pending litigation, action, or proceeding to which the issuer is a party and that materially affects its business or assets, and any litigation, action, or proceeding known to be contemplated by governmental authorities;

(13) a copy of any prospectus, pamphlet, circular, form letter, advertisement, or other sales literature intended as of the effective date to be used in connection with the offering and any solicitation of interest used in compliance with subdivision 5202(17)(B) of this chapter;

(14) a specimen or copy of the security being registered, unless the security is uncertificated; a copy of the issuer’s articles of incorporation and bylaws or their substantial equivalents, in effect; and a copy of any indenture or other instrument covering the security to be registered;

(15) a signed or conformed copy of an opinion of counsel concerning the legality of the security being registered, with an English translation if it is in a language other than English, that states whether the security when sold will be validly issued, fully paid, and nonassessable and, if a debt security, a binding obligation of the issuer;

(16) a signed or conformed copy of a consent of any accountant, engineer, appraiser, or other person whose profession gives authority for a statement made by the person, if the person is named as having prepared or certified a report or valuation, other than an official record, that is public, which is used in connection with the registration statement;

(17) a balance sheet of the issuer as of a date within four months before the filing of the registration statement; a statement of income and a statement of cash flows for each of the three fiscal years preceding the date of the balance sheet and for any period between the close of the immediately previous fiscal year and the date of the balance sheet, or for the period of the issuer’s and any predecessor’s existence if less than three years; and, if any part of the proceeds of the offering is to be applied to the purchase of a business, the financial statements that would be required if that business were the registrant; and

(18) any additional information or records required by rule adopted or order issued under this chapter.

(c) A registration statement under this section becomes effective 30 days, or any shorter period provided by rule adopted or order issued under this chapter, after the date the registration statement or the last amendment other than a price amendment is filed, if:

(1) a stop order is not in effect, and a proceeding is not pending under section 5306 of this chapter;

(2) the Commissioner has not issued an order under section 5306 of this chapter delaying effectiveness;

(3) the applicant or registrant and the Commissioner or the Commissioner’s designee have not mutually agreed to delay effectiveness for a specified period of time; or

(4) the applicant or registrant has not requested that effectiveness be delayed.

(d) The Commissioner may delay effectiveness once for not more than 90 days if the Commissioner determines the registration statement is not complete in all material respects and promptly notifies the applicant or registrant of that determination. The Commissioner may also delay effectiveness for a further period of not more than 30 days if the Commissioner determines that the delay is necessary or appropriate.

(e) A rule adopted or order issued under this chapter may require as a condition of registration under this section that a prospectus containing a specified part of the information or record specified in subsection (b) of this section be sent or given to each person to which an offer is made, before or concurrently, with the earliest of:

(1) the first offer made in a record to the person otherwise than by means of a public advertisement, by or for the account of the issuer or another person on whose behalf the offering is being made or by an underwriter or broker-dealer that is offering part of an unsold allotment or subscription taken by the person as a participant in the distribution;

(2) the confirmation of a sale made by or for the account of the person;

(3) payment pursuant to such a sale; or

(4) delivery of the security pursuant to such a sale.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5305 Securities registration filings

(a) A registration statement may be filed by the issuer, a person on whose behalf the offering is to be made, or a broker-dealer registered under this chapter.

(b) A person filing a registration statement shall pay a filing fee of $600.00. A person filing a registration statement in connection with the New England Crowdfunding Initiative shall be exempt from the filing fee requirement. Open-end investment companies shall pay a registration fee and an annual renewal fee for each portfolio as long as the registration of those securities remains in effect. The fee is nonrefundable.

(1) the amount of securities to be offered in this State;

(2) the states in which a registration statement or similar record in connection with the offering has been or is to be filed; and

(3) any adverse order, judgment, or decree issued in connection with the offering by a state securities regulator, the Securities and Exchange Commission, or a court.

(d) A record filed under this chapter or the predecessor act within five years preceding the filing of a registration statement may be incorporated by reference in the registration statement to the extent that the record is currently accurate. Notwithstanding the provisions of this subsection, nothing shall prevent the Commissioner or the Commissioner’s designee from requiring the applicant or registrant to refurnish any previously filed records that the applicant or registrant incorporated by reference in the registration statement.

(e) In the case of a nonissuer distribution, information or a record may not be required under subsection (i) of this section or section 5304 of this title, unless it is known to the person filing the registration statement or to the person on whose behalf the distribution is to be made or unless it can be furnished by those persons without unreasonable effort or expense.

(f) A rule adopted or order issued under this chapter may require as a condition of registration that a security issued within the previous five years or to be issued to a promoter for a consideration substantially less than the public offering price or to a person for a consideration other than cash be deposited in escrow and that the proceeds from the sale of the registered security in this State be impounded until the issuer receives a specified amount from the sale of the security either in this State or elsewhere. The conditions of any escrow or impoundment required under this subsection may be established by rule adopted or order issued under this chapter, but the Commissioner may not reject a depository institution solely because of its location in another state.

(g) A rule adopted or order issued under this chapter may require as a condition of registration that a security registered under this chapter be sold only on a specified form of subscription or sale contract and that a signed or conformed copy of each contract be filed under this chapter or preserved for a period specified by the rule or order, which may not be longer than five years.

(h) Except while a stop order is in effect under section 5306 of this title, a registration statement is effective for one year after its effective date or for any longer period designated in an order under this chapter during which the security is being offered or distributed in a nonexempted transaction by or for the account of the issuer or other person on whose behalf the offering is being made or by an underwriter or broker-dealer that is still offering part of an unsold allotment or subscription taken as a participant in the distribution. For the purposes of a nonissuer transaction, all outstanding securities of the same class identified in the registration statement as a security registered under this chapter are considered to be registered while the registration statement is effective. If any securities of the same class are outstanding, a registration statement may not be withdrawn until one year after its effective date. A registration statement may be withdrawn only with the approval of the Commissioner.

(i) While a registration statement is effective, a rule adopted or order issued under this chapter may require the person that filed the registration statement to file reports, not more often than quarterly, to keep the information or other record in the registration statement reasonably current and to disclose the progress of the offering.

(j) A registration statement may be amended after its effective date. The post-effective amendment becomes effective 30 days after filing unless the Commissioner has issued a stop order.

(k) At the time of filing a request for exemption from registration, the applicant shall pay a fee of $200.00.

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2007, No. 49, § 27; 2007, No. 76, § 24, eff. June 7, 2007; 2007, No. 153 (Adj. Sess.), § 30; 2011, No. 78 (Adj. Sess.), § 33, eff. April 2, 2012; 2019, No. 57, § 18; 2021, No. 139 (Adj. Sess.), § 3, eff. May 27, 2022.)

§ 5306 Denial, suspension, and revocation of securities registration

(a) The Commissioner may issue a stop order denying effectiveness to, or suspending or revoking the effectiveness of, a registration statement if the Commissioner finds that the order is in the public interest and that:

(1) The registration statement as of its effective date or before the effective date in the case of an order denying effectiveness, an amendment under subsection 5305(j) of this chapter as of its effective date, or a report under subsection 5305(i) of this chapter is incomplete in a material respect or contains a statement that, in the light of the circumstances under which it was made, was false or misleading with respect to a material fact.

(2) This chapter or a rule adopted or order issued under this chapter or a condition imposed under this chapter has been willfully violated, in connection with the offering, by the person filing the registration statement; by the issuer, a partner, an officer, or a director of the issuer or a person having a similar status or performing a similar function; a promoter of the issuer; or a person directly or indirectly controlling or controlled by the issuer; but only if the person filing the registration statement is directly or indirectly controlled by or acting for the issuer; or by an underwriter. As used in this subdivision, the term “willfully” means purposely or willingly committing the act or making the omission and does not require an intent to violate the law or to injure another or to acquire any advantage.

(3) The security registered or sought to be registered is the subject of a permanent or temporary injunction of a court of competent jurisdiction or an administrative stop order or similar order issued under any federal, foreign, or state law other than this chapter applicable to the offering, but the Commissioner may not institute a proceeding against an effective registration statement under this subsection more than one year after the date of the order or injunction on which it is based, and the Commissioner may not issue an order under this subdivision on the basis of an order or injunction issued under the securities act of another state unless the order or injunction was based on conduct that would constitute, as of the date of the order, a ground for a stop order under this section.

(4) The issuer’s enterprise or method of business includes or would include activities that are unlawful where performed.

(5) With respect to a security sought to be registered under section 5303 of this chapter, there has been a failure to comply with the undertaking required by subdivision 5303(b)(4) of this chapter.

(6) The applicant or registrant has not paid the filing fee, but the Commissioner shall void the order if the deficiency is corrected.

(7) The offering:

(A) will work or tend to work a fraud upon purchasers or would so operate;

(B) has been or would be made with unreasonable amounts of underwriters’ and sellers’ discounts, commissions, or other compensation, or promoters’ profits or participations, or unreasonable amounts or kinds of options; or

(b) To the extent practicable, the Commissioner by rule adopted or order issued under this chapter shall publish standards that provide notice of conduct that violates subdivision (a)(7) of this section.

(c) The Commissioner may not institute a stop order proceeding against an effective registration statement on the basis of conduct or a transaction known to the Commissioner when the registration statement became effective unless the proceeding is instituted within 30 days after the registration statement became effective.

(d) The Commissioner may summarily revoke, deny, postpone, or suspend the effectiveness of a registration statement pending final determination of an administrative proceeding. Upon the issuance of the order, the Commissioner shall promptly notify each person specified in subsection (e) of this section that the order has been issued; the reasons for the revocation, denial, postponement, or suspension; and that within 15 days after the receipt of a request in a record from the person the matter will be scheduled for a hearing. If a hearing is not requested and none is ordered by the Commissioner, within 30 days after the date of service of the order, the order becomes final. If a hearing is requested or ordered, the Commissioner, after notice of and opportunity for hearing for each person subject to the order, may modify or vacate the order or extend the order until final determination.

(e) A stop order may not be issued under this section without:

(1) appropriate notice to the applicant or registrant, the issuer, and the person on whose behalf the securities are to be or have been offered;

(2) an opportunity for hearing; and

(3) findings of fact and conclusions of law in a record in accordance with the procedures set forth in 3 V.S.A. chapter 25 (Administrative Procedure Act).

(f) Subject to notice and opportunity for hearing and in accordance with the procedures set forth in 3 V.S.A. chapter 25 (Administrative Procedure Act), the Commissioner may modify or vacate a stop order issued under this section if the Commissioner finds that the conditions that caused its issuance have changed or that it is necessary or appropriate in the public interest or for the protection of investors.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5307 Waiver and modification

The Commissioner may waive or modify, in whole or in part, any or all of the requirements of sections 5302 and 5303 and subsection 5304(b) of this chapter or the requirement of any information or record in a registration statement or in a periodic report filed pursuant to subsection 5305(i) of this chapter.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

Subchapter 4 Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Investment Advisers

§ 5401 Broker-dealer registration requirement and exemptions

(a) It is unlawful for a person to transact business in this State as a broker-dealer unless the person is registered under this chapter as a broker-dealer or is exempt from registration as a broker-dealer under subsection (b) or (d) of this section.

(b) The following persons are exempt from the registration requirement of subsection (a) of this section:

(1) a broker-dealer without a place of business in this State if its only transactions effected in this State are with:

(A) the issuer of the securities involved in the transactions;

(B) a broker-dealer registered as a broker-dealer under this chapter or not required to be registered as a broker-dealer under this chapter;

(D) a nonaffiliated federal covered investment adviser with investments under management in excess of $100,000,000.00 acting for the account of others pursuant to discretionary authority in a signed record;

(E) a bona fide preexisting customer whose principal place of residence is not in this State, and the person is registered as a broker-dealer under 15 U.S.C. § 78a et seq. or not required to be registered under 15 U.S.C. § 78a et seq. and is registered under the securities act of the state in which the customer maintains a principal place of residence;

(F) a bona fide preexisting customer whose principal place of residence is in this State but was not present in this State when the customer relationship was established, if:

(i) the broker-dealer is registered under 15 U.S.C. § 78a et seq. or not required to be registered under 15 U.S.C. § 78a et seq. and is registered under the securities laws of the state in which the customer relationship was established and where the customer had maintained a principal place of residence; and

(ii) within 45 days after the customer’s first transaction in this State, the person files an application for registration as a broker-dealer in this State and a further transaction is not effected more than 75 days after the date on which the application is filed, or, if earlier, the date on which the Commissioner notifies the person that the Commissioner has denied the application for registration or has stayed the pendency of the application for good cause;

(G) not more than three customers in this State during the previous 12 months, in addition to those customers specified in subdivisions (A) through (F) and under subdivision (H) of this subdivision, if the broker-dealer is registered under 15 U.S.C. § 78a et seq. or not required to be registered under 15 U.S.C. § 78a et seq. and is registered under the securities act of the state in which the broker-dealer has its principal place of business; and

(H) any other person exempted by rule adopted or order issued under this chapter;

(2) a person that deals solely in U.S. government securities and is supervised as a dealer in government securities by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, or the Office of Thrift Supervision; and

(3) any other person exempted by rule adopted or order issued under this chapter.

(c) It is unlawful for a broker-dealer, or for an issuer engaged in offering, offering to purchase, purchasing, or selling securities in this State, directly or indirectly, to employ or associate with an individual to engage in an activity related to securities transactions in this State if the registration of the individual is suspended or revoked or the individual is barred from employment or association with a broker-dealer, an issuer, an investment adviser, or a federal covered investment adviser by an order of the Commissioner under this chapter, the Securities and Exchange Commission, or a self-regulatory organization. A broker-dealer or issuer does not violate this subsection if the broker-dealer or issuer did not know, and in the exercise of reasonable care could not have known, of the suspension, revocation, or bar. Upon request from a broker-dealer or issuer and for good cause, an order under this chapter may modify or waive, in whole or in part, the application of the prohibitions of this subsection to the broker-dealer.

(d) A rule adopted or order issued under this chapter may permit:

(1) a broker-dealer that is registered in Canada or other foreign jurisdiction and that does not have a place of business in this State to effect transactions in securities with or for, or attempt to effect the purchase or sale of any securities by:

(A) an individual from Canada or other foreign jurisdiction who is temporarily present in this State and with whom the broker-dealer had a bona fide customer relationship before the individual entered the United States;

(B) an individual from Canada or other foreign jurisdiction who is present in this State and whose transactions are in a self-directed tax advantaged retirement plan of which the individual is the holder or contributor in that foreign jurisdiction; or

(C) an individual who is present in this State, with whom the broker-dealer customer relationship arose while the individual was temporarily or permanently resident in Canada or the other foreign jurisdiction; and

(2) an agent who represents a broker-dealer that is exempt under this subsection to effect transactions in securities or attempt to effect the purchase or sale of securities in this State as permitted for a broker-dealer described in subdivision (1) of this subsection.

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2007, No. 49, § 26.)

§ 5402 Agent registration requirement and exemptions

(a) It is unlawful for an individual to transact business in this State as an agent unless the individual is registered under this chapter as an agent or is exempt from registration as an agent under subsection (b) of this section.

(b) The following individuals are exempt from the registration requirement of subsection (a) of this section:

(1) an individual who represents a broker-dealer in effecting transactions in this State limited to those described in 15 U.S.C. § 78o(a)(2);

(2) an individual who represents a broker-dealer that is exempt under subsection 5401(b) or (d) of this chapter;

(3) an individual who represents an issuer with respect to an offer or sale of the issuer’s own securities or those of the issuer’s parent or any of the issuer’s subsidiaries, and who is not compensated in connection with the individual’s participation by the payment of commissions or other remuneration based, directly or indirectly, on transactions in those securities;

(4) an individual who represents an issuer and who effects transactions in the issuer’s securities exempted by section 5202 of this chapter, other than subdivisions 5202(11) and (14);

(5) an individual who represents an issuer that effects transactions solely in federal covered securities of the issuer, but an individual who effects transactions in a federal covered security under 15 U.S.C. § 77r(b)(3) or (4)(D) is not exempt if the individual is compensated in connection with the agent’s participation by the payment of commissions or other remuneration based, directly or indirectly, on transactions in those securities;

(6) an individual who represents a broker-dealer registered in this State under subsection 5401(a) of this chapter or exempt from registration under subsection 5401(b) of this chapter in the offer and sale of securities for an account of a nonaffiliated federal covered investment adviser with investments under management in excess of $100,000,000.00 acting for the account of others pursuant to discretionary authority in a signed record;

(7) an individual who represents an issuer in connection with the purchase of the issuer’s own securities;

(8) an individual who represents an issuer and who restricts participation to performing clerical or ministerial acts; or

(9) any other individual exempted by rule adopted or order issued under this chapter.

(c) The registration of an agent is effective only while the agent is employed by or associated with a broker-dealer registered under this chapter or an issuer that is offering, selling, or purchasing its securities in this State.

(d) It is unlawful for a broker-dealer, or an issuer engaged in offering, selling, or purchasing securities in this State, to employ or associate with an agent who transacts business in this State on behalf of broker-dealers or issuers unless the agent is registered under subsection (a) of this section or exempt from registration under subsection (b) of this section.

(e) An individual may not act as an agent for more than one broker-dealer or one issuer at a time, unless the broker-dealer or the issuer for which the agent acts is affiliated by direct or indirect common control or is authorized by rule or order under this chapter.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5403 Investment adviser registration requirement and exemptions

(a) It is unlawful for a person to transact business in this State as an investment adviser unless the person is registered under this chapter as an investment adviser or is exempt from registration as an investment adviser under subsection (b) of this section.

(b) The following persons are exempt from the registration requirement of subsection (a) of this section:

(1) a person without a place of business in this State that is registered under the securities act of the state in which the person has its principal place of business if its only clients in this State are:

(A) federal covered investment advisers, investment advisers registered under this chapter, or broker-dealers registered under this chapter;

(B) institutional investors;

(C) bona fide preexisting clients whose principal places of residence are not in this State if the investment adviser is registered under the securities act of the state in which the clients maintain principal places of residence; or

(D) any other client exempted by rule adopted or order issued under this chapter;

(2) a person without a place of business in this State if the person has had, during the preceding 12 months, not more than five clients that are resident in this State in addition to those specified under subdivision (1) of this subsection; or

(3) any other person exempted by rule adopted or order issued under this chapter.

(c) It is unlawful for an investment adviser, directly or indirectly, to employ or associate with an individual to engage in an activity related to investment advice in this State if the registration of the individual is suspended or revoked or the individual is barred from employment or association with an investment adviser, federal covered investment adviser, or broker-dealer by an order under this chapter, the Securities and Exchange Commission, or a self-regulatory organization, unless the investment adviser did not know, and in the exercise of reasonable care could not have known, of the suspension, revocation, or bar. Upon request from the investment adviser and for good cause, the Commissioner, by order, may waive, in whole or in part, the application of the prohibitions of this subsection to the investment adviser.

(d) It is unlawful for an investment adviser to employ or associate with an individual required to be registered under this chapter as an investment adviser representative who transacts business in this State on behalf of the investment adviser unless the individual is registered under subsection 5404(a) of this chapter or is exempt from registration under subsection 5404(b).

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5404 Investment adviser representative registration requirement and exemptions

(a) It is unlawful for an individual to transact business in this State as an investment adviser representative unless the individual is registered under this chapter as an investment adviser representative or is exempt from registration as an investment adviser representative under subsection (b) of this section.

(b) The following individuals are exempt from the registration requirement of subsection (a) of this section:

(1) an individual who is employed by or associated with an investment adviser that is exempt from registration under subsection 5403(b) of this chapter or a federal covered investment adviser that is excluded from the notice filing requirements of section 5405 of this chapter; and

(2) any other individual exempted by rule adopted or order issued under this chapter.

(c) The registration of an investment adviser representative is not effective while the investment adviser representative is not employed by or associated with an investment adviser registered under this chapter or a federal covered investment adviser that has made or is required to make a notice filing under section 5405 of this chapter.

(d) An individual may transact business as an investment adviser representative for more than one investment adviser or federal covered investment adviser unless a rule adopted or order issued under this chapter prohibits or limits an individual from acting as an investment adviser representative for more than one investment adviser or federal covered investment adviser.

(e) It is unlawful for an individual acting as an investment adviser representative, directly or indirectly, to conduct business in this State on behalf of an investment adviser or a federal covered investment adviser if the registration of the individual as an investment adviser representative is suspended or revoked or the individual is barred from employment or association with an investment adviser or a federal covered investment adviser by an order under this chapter, the Securities and Exchange Commission, or a self-regulatory organization. Upon request from a federal covered investment adviser and for good cause, the Commissioner, by order issued, may waive, in whole or in part, the application of the requirements of this subsection to the federal covered investment adviser.

(f) An investment adviser registered under this chapter, a federal covered investment adviser that has filed a notice under section 5405 of this chapter, or a broker-dealer registered under this chapter is not required to employ or associate with an individual as an investment adviser representative if the only compensation paid to the individual for a referral of investment advisory clients is paid to an investment adviser registered under this chapter, a federal covered investment adviser who has filed a notice under section 5405, or a broker-dealer registered under this chapter with which the individual is employed or associated as an investment adviser representative.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5405 Federal covered investment adviser notice filing requirement

(a) Except with respect to a federal covered investment adviser described in subsection (b) of this section, it is unlawful for a federal covered investment adviser to transact business in this State as a federal covered investment adviser unless the federal covered investment adviser complies with subsection (c) of this section.

(b) The following federal covered investment advisers are not required to comply with subsection (c) of this section:

(1) a federal covered investment adviser without a place of business in this State if its only clients in this State are:

(A) federal covered investment advisers, investment advisers registered under this chapter, and broker-dealers registered under this chapter;

(B) institutional investors;

(D) other clients specified by rule adopted or order issued under this chapter;

(2) a federal covered investment adviser without a place of business in this State if the person has had, during the preceding 12 months, not more than five clients that are resident in this State in addition to those specified under subdivision (1) of this subsection; and

(3) any other person excluded by rule adopted or order issued under this chapter.

(c) A person acting as a federal covered investment adviser, not excluded under subsection (b) of this section, shall file a notice, a consent to service of process complying with section 5611 of this chapter, and such records as have been filed with the Securities and Exchange Commission under 15 U.S.C. § 80b-1 et seq. required by rule adopted or order issued under this chapter and pay the fees specified in subsection 5410(e) of this chapter.

(d) The notice under subsection (c) of this section becomes effective upon its filing.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5406 Registration by broker-dealer, agent, investment adviser, and investment adviser representative

(a) A person shall register as a broker-dealer, agent, investment adviser, or investment adviser representative by filing an application and a consent to service of process complying with section 5611 of this chapter, and paying the fee specified in section 5410 of this chapter and any reasonable fees charged by the designee of the Commissioner for processing the filing. The application must contain:

(1) the information or record required for the filing of a uniform application; and

(2) upon request by the Commissioner, any other financial or other information or record that the Commissioner determines is appropriate.

(b) If the information or record contained in an application filed under subsection (a) of this section is or becomes inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting amendment.

(c) If an order is not in effect and a proceeding is not pending under section 5412 of this chapter or if the applicant and the Commissioner or the Commissioner’s designee have not mutually agreed to delay effectiveness for a specified period of time, registration becomes effective at noon on the 45th day after a completed application is filed, unless registration is denied. A rule adopted or order issued under this chapter may set an earlier effective date or may defer the effective date until noon on the 45th day after the filing of any amendment completing the application.

(d) A registration is effective until midnight on December 31 of the year for which the application for registration is filed. Unless an order is in effect under section 5412 of this chapter, a registration may be automatically renewed each year by filing such records as are required by rule adopted or order issued under this chapter, by paying the fee specified in section 5410 of this chapter, and by paying costs charged by the designee of the Commissioner for processing the filings.

(e) A rule adopted or order issued under this chapter may impose such other conditions not inconsistent with the National Securities Markets Improvement Act of 1996. An order issued under this chapter may waive, in whole or in part, specific requirements in connection with registration as are in the public interest and for the protection of investors.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5407 Succession and change in registration of broker-dealer or investment adviser

(a) A broker-dealer or investment adviser may succeed to the current registration of another broker-dealer or investment adviser or a notice filing of a federal covered investment adviser, and a federal covered investment adviser may succeed to the current registration of an investment adviser or notice filing of another federal covered investment adviser, by filing as a successor an application for registration pursuant to section 5401 or 5403 of this chapter or a notice pursuant to section 5405 of this chapter for the unexpired portion of the current registration or notice filing.

(b) A broker-dealer or investment adviser that changes its form of organization or state of incorporation or organization may continue its registration by filing an amendment to its registration if the change does not involve a material change in its financial condition or management. The amendment becomes effective when filed or on a date designated by the registrant in its filing. The new organization is a successor to the original registrant for the purposes of this chapter. If there is a material change in financial condition or management, the broker-dealer or investment adviser shall file a new application for registration. A predecessor registered under this chapter shall stop conducting its securities business other than winding down transactions and shall file for withdrawal of broker-dealer or investment adviser registration within 45 days after filing its amendment to effect succession.

(c) A broker-dealer or investment adviser that changes its name may continue its registration by filing an amendment to its registration. The amendment becomes effective when filed or on a date designated by the registrant.

(d) A change of control of a broker-dealer or investment adviser may be made in accordance with a rule adopted or order issued under this chapter.

(Added 2005, No. 11, § 1, eff. Jan. 1, 2006.)

§ 5408 Termination of employment or association of agent and investment adviser representative and transfer of employment or association

(a) If an agent registered under this chapter terminates employment by or association with a broker-dealer or issuer, or if an investment adviser representative registered under this chapter terminates employment by or association with an investment adviser or federal covered investment adviser, or if either registrant terminates activities that require registration as an agent or investment adviser representative, the broker-dealer, issuer, investment adviser, or federal covered investment adviser shall promptly file a notice of termination. If the registrant learns that the broker-dealer, issuer, investment adviser, or federal covered investment adviser has not filed the notice, the registrant may do so.

(b) If an agent registered under this chapter terminates employment by or association with a broker-dealer registered under this chapter and begins employment by or association with another broker-dealer registered under this chapter; or if an investment adviser representative registered under this chapter terminates employment by or association with an investment adviser registered under this chapter or a federal covered investment adviser that has filed a notice under section 5405 of this title and begins employment by or association with another investment adviser registered under this chapter or a federal covered investment adviser that has filed a notice under section 5405 of this title; then upon the filing by or on behalf of the registrant, within 30 days after the termination, of an application for registration that complies with the requirement of subsection 5406(a) of this title and payment of the filing fee required under section 5410 of this title, the registration of the agent or investment adviser representative is:

(1) immediately effective as of the date of the completed filing, if the agent’s Central Registration Depository record or successor record or the investment adviser representative’s Central Registration Depository record or successor record does not contain a new or amended disciplinary disclosure within the previous 12 months; or

(2) temporarily effective as of the date of the completed filing, if the agent’s Central Registration Depository record or successor record or the investment adviser representative’s Central Registration Depository record or successor record contains a new or amended disciplinary disclosure within the preceding 12 months.

(c) The Commissioner may withdraw a temporary registration if there are or were grounds for discipline as specified in section 5412 of this title and the Commissioner does so within 30 days after the filing of the application. If the Commissioner does not withdraw the temporary registration within the 30-day period, registration becomes automatically effective on the 31st day after filing.

(d) The Commissioner may prevent the effectiveness of a transfer of an agent or investment adviser representative under subdivision (b)(1) or (2) of this section based on the public interest and the protection of investors.

(e) If the Commissioner determines that a registrant or applicant for registration is no longer in existence or has ceased to act as a broker-dealer, agent, investment adviser, or investment adviser representative, or is the subject of an adjudication of incapacity or is subject to the control of a committee, conservator, or guardian, or cannot reasonably be located, a rule adopted or order issued under this chapter may require that the registration be canceled or terminated or the application denied. The Commissioner may reinstate a canceled or terminated registration, with or without hearing, and may make the registration retroactive.

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2007, No. 49, § 22.)

§ 5409 Withdrawal of registration of broker-dealer, agent, investment adviser, and investment representative

Withdrawal of registration by a broker-dealer, agent, investment adviser, or investment adviser representative becomes effective 60 days after the filing of the application to withdraw or within any shorter period as provided by rule adopted or order issued under this chapter unless a revocation or suspension proceeding is pending when the application is filed. If a proceeding is pending, withdrawal becomes effective when and upon such conditions as required by rule adopted or order issued under this chapter. The Commissioner may institute a revocation or suspension proceeding under section 5412 of this chapter within one year after the withdrawal became effective automatically and issue a revocation or suspension order as of the last date on which registration was effective if a proceeding is not pending.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5410 Filing fees

(a) A person shall pay a fee of $300.00 when initially filing an application for registration as a broker-dealer and a fee of $300.00 when filing a renewal of registration as a broker-dealer. A separate application in writing for branch office registration or renewal, accompanied by a filing fee of $120.00 per branch office, shall be filed in the Office of the Commissioner in such form as the Commissioner may prescribe by any broker-dealer who transacts business in this State from any place of business located within this State. The fee is nonrefundable.

(b) The fee for an individual is $145.00 when filing an application for registration as an agent, $145.00 when filing a renewal of registration as an agent, and $145.00 when filing for a change of registration as an agent. The fee is nonrefundable.

(c) A person shall pay a fee of $300.00 when filing an application for registration as an investment adviser and a fee of $300.00 when filing a renewal of registration as an investment adviser. A separate application in writing for branch office registration or renewal, accompanied by a filing fee of $120.00 per branch office, shall be filed in the Office of the Commissioner in such form as the Commissioner may prescribe by any investment adviser who transacts business in this State from any place of business located within the State. The fee is nonrefundable.

(d) The fee for an individual is $80.00 when filing an application for registration as an investment adviser representative, $80.00 when filing a renewal of registration as an investment adviser representative, and $80.00 when filing a change of registration as an investment adviser representative. The fee is nonrefundable.

(e) A federal covered investment adviser required to file a notice under section 5405 of this title shall pay an initial fee of $300.00 and an annual notice fee of $300.00. A notice filing may be terminated by filing notice of such termination with the Commissioner. The fee is nonrefundable.

(f) A person required to pay a filing or notice fee under this section may transmit the fee through or to a designee as a rule or order provides under this chapter.

(g) The Commissioner may, as an alternative means of registering branch offices as set forth in subsections (a) and (c) of this section, register branch offices by means of or through the facilities of a national organization that facilitates branch office registration on a nationwide basis, and comply with the terms of any agreement or contract entered into with such national organization. The initial and annual renewal filing fees per branch office specified in subsections (a) and (c) of this section shall apply to any such centralized filing and shall be paid at the time of filing. In the event of conflict between this provision and other pertinent provisions of this chapter, the Commissioner may elect that this provision prevail.

(h) Notwithstanding the provisions of this section, the Commissioner may, upon written request, waive or issue a refund of fees due or paid pursuant to this chapter to military personnel who comply with all the following:

(1) the applicant has been called or recalled to active duty status or to a status similar to active duty;

(2) the applicant’s active duty status is expected to remain unchanged for six months or more during the calendar year for which the refund is requested; and

(3) the active duty status will prevent the applicant from acting as an agent, investment adviser representative, or investment adviser during the relevant time period.

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2005, No. 72, § 3d, eff. July 1, 2006; 2007, No. 153 (Adj. Sess.), § 31; 2013, No. 29, § 19, eff. May 13, 2013; 2015, No. 149 (Adj. Sess.), § 33a; 2019, No. 70, § 4; 2019, No. 103 (Adj. Sess.), § 28; 2021, No. 25, § 18, eff. May 12, 2021; 2023, No. 113 (Adj. Sess.), § F.103, eff. July 1, 2024.)

§ 5411 Postregistration requirements

(a) Subject to 15 U.S.C. § 78o(h) or 15 U.S.C. § 80b-22, a rule adopted or order issued under this chapter may establish minimum financial requirements for broker-dealers registered or required to be registered under this chapter and investment advisers registered or required to be registered under this chapter.

(b) Subject to 15 U.S.C. § 78o(h) or 15 U.S.C. § 80b-22, a broker-dealer registered or required to be registered under this chapter and an investment adviser registered or required to be registered under this chapter shall file such financial reports as are required by a rule adopted or order issued under this chapter. If the information contained in a record filed under this subsection is or becomes inaccurate or incomplete in a material respect, the registrant shall promptly file a correcting amendment.

(1) a broker-dealer registered or required to be registered under this chapter and an investment adviser registered or required to be registered under this chapter shall make and maintain the accounts, correspondence, memoranda, papers, books, and other records required by rule adopted or order issued under this chapter;

(2) broker-dealer records required to be maintained under subdivision (1) of this subsection may be maintained in any form of data storage acceptable under 15 U.S.C. § 78q(a) if they are readily accessible to the Commissioner; and

(3) investment adviser records required to be maintained under subdivision (1) of this subsection may be maintained in any form of data storage required by rule adopted or order issued under this chapter.

(d) The records of a broker-dealer registered or required to be registered under this chapter and of an investment adviser registered or required to be registered under this chapter are subject to such reasonable periodic, special, or other audits or inspections by a representative of the Commissioner, within or without this State, as the Commissioner considers necessary or appropriate in the public interest and for the protection of investors. An audit or inspection may be made at any time and without prior notice. The Commissioner may copy, and remove for audit or inspection copies of, all records the Commissioner reasonably considers necessary or appropriate to conduct the audit or inspection. The Commissioner may assess a reasonable charge for conducting an audit or inspection under this subsection.

(e) Subject to 15 U.S.C. § 78o(h) or 15 U.S.C. § 80b-22, a rule adopted or order issued under this chapter may require a broker-dealer or investment adviser that has custody of or discretionary authority over funds or securities of a customer or client to obtain insurance or post a bond or other satisfactory form of security in an amount to be established by rule or order. The Commissioner may determine the requirements of the insurance, bond, or other satisfactory form of security. Insurance or a bond or other satisfactory form of security may not be required of a broker-dealer registered under this chapter whose net capital exceeds, or of an investment adviser registered under this chapter whose minimum financial requirements exceed, the amounts required by rule or order under this chapter. The insurance, bond, or other satisfactory form of security must permit an action by a person to enforce any liability on the insurance, bond, or other satisfactory form of security if instituted within the time limitations in subdivision 5509(j)(2) of this chapter.

(f) Subject to 15 U.S.C. § 78o(h) or 15 U.S.C. § 80b-22, an agent may not have custody of funds or securities of a customer except under the supervision of a broker-dealer, and an investment adviser representative may not have custody of funds or securities of a client except under the supervision of an investment adviser or a federal covered investment adviser. A rule adopted or order issued under this chapter may prohibit, limit, or impose conditions on a broker-dealer regarding custody of funds or securities of a customer and on an investment adviser regarding custody of securities or funds of a client.

(g) With respect to an investment adviser registered or required to be registered under this chapter, a rule adopted or order issued under this chapter may require that information or other record be furnished or disseminated to clients or prospective clients in this State as necessary or appropriate in the public interest and for the protection of investors and advisory clients.

(h) A rule adopted or order issued under this chapter may require an individual registered under section 5402 or 5404 of this chapter to participate in a continuing education program approved by the Securities and Exchange Commission and administered by a self-regulatory organization or, in the absence of such a program, a rule adopted or order issued under this chapter may require continuing education for an individual registered under section 5404.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5412 Denial, revocation, suspension, withdrawal, restriction, condition, or limitations of registration

(a) If the Commissioner finds that the order is in the public interest and subsection (d) of this section authorizes the action, an order issued under this chapter may deny an application, or may condition or limit registration of an applicant to be a broker-dealer, agent, investment adviser, or investment adviser representative, and, if the applicant is a broker-dealer or investment adviser, of a partner, officer, director, or person having a similar status or performing similar functions, or a person directly or indirectly in control, of the broker-dealer or investment adviser.

(b) If the Commissioner finds that the order is in the public interest and subsection (d) of this section authorizes the action, an order issued under this chapter may revoke, suspend, condition, or limit the registration of a registrant and, if the registrant is a broker-dealer or investment adviser, of a partner, officer, director, or person having a similar status or performing similar functions, or a person directly or indirectly in control, of the broker-dealer or investment adviser. However, the Commissioner may not:

(1) institute a revocation or suspension proceeding under this subsection based on an order issued under a law of another state that is reported to the Commissioner or a designee of the Commissioner more than one year after the date of the order on which it is based; or

(2) under subdivision (d)(5)(A) or (B) of this section, issue an order on the basis of an order issued under the securities act of another state unless the other order was based on conduct for which subsection (d) of this section would authorize the action had the conduct occurred in this State.

(c) If the Commissioner finds that the order is in the public interest and subdivisions (d)(1) through (6), (8), (9), (10), (12), or (13) of this section authorize the action, an order under this chapter may censure, impose a bar on, or impose a civil penalty on a registrant in an amount not more than $15,000.00 for each violation and recover the costs of the investigation from the registrant, and, if the registrant is a broker-dealer or investment adviser, a partner, officer, director, or person having a similar status or performing similar functions, or a person directly or indirectly in control of the broker-dealer or investment adviser. The limitations on civil penalties contained in this subsection shall not apply to settlement agreements.

(d) A person may be disciplined under subsections (a) through (c) of this section if the person:

(1) has filed an application for registration in this State under this chapter or the predecessor act within the previous 10 years, which, as of the effective date of registration or as of any date after filing in the case of an order denying effectiveness, was incomplete in any material respect or contained a statement that, in light of the circumstances under which it was made, was false or misleading with respect to a material fact;

(2) willfully violated or willfully failed to comply with this chapter or the predecessor act or a rule adopted or order issued under this chapter or the predecessor act within the previous 10 years. As used in this subdivision, the term “willfully” means purposely or willingly committing the act or making the omission and does not require an intent to violate the law or to injure another or to acquire any advantage;

(3) has been convicted of a felony or within the previous 10 years has been convicted of a misdemeanor involving a security, a commodity future or option contract, or an aspect of a business involving securities, commodities, investments, franchises, insurance, banking, or finance;

(4) is enjoined or restrained by a court of competent jurisdiction in an action instituted by the Commissioner under this chapter or the predecessor act, a state, the Securities and Exchange Commission, or the United States from engaging in or continuing an act, practice, or course of business involving an aspect of a business involving securities, commodities, investments, franchises, insurance, banking, or finance;

(5) is the subject of an order, issued after notice and opportunity for hearing by:

(A) the securities or other financial services regulator of a state or the Securities and Exchange Commission or other federal agency denying, revoking, barring, or suspending registration as a broker-dealer, agent, investment adviser, federal covered investment adviser, or investment adviser representative;

(B) the securities regulator of a state or the Securities and Exchange Commission against a broker-dealer, agent, investment adviser, investment adviser representative, or federal covered investment adviser;

(C) the Securities and Exchange Commission or a self-regulatory organization suspending or expelling the registrant from membership in the self-regulatory organization;

(D) a court adjudicating a U.S. Postal Service fraud order;

(E) the insurance regulator of a state denying, suspending, or revoking registration as an insurance agent; or

(F) a depository institution or financial services regulator suspending or barring the person from the depository institution or other financial services business;

(6) is the subject of an adjudication or determination, after notice and opportunity for hearing, by the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Trade Commission, a federal depository institution regulator, or a depository institution, insurance, or other financial services regulator of a state that the person willfully violated the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, or the Commodity Exchange Act, the securities or commodities law of a state, or a federal or state law under which a business involving investments, franchises, insurance, banking, or finance is regulated;

(7) is insolvent, either because the person’s liabilities exceed the person’s assets or because the person cannot meet the person’s obligations as they mature, but the Commissioner may not enter an order against an applicant or registrant under this subdivision without a finding of insolvency as to the applicant or registrant;

(8) refuses to allow or otherwise impedes the Commissioner from conducting an audit or inspection under subsection 5411(d) of this chapter or refuses access to a registrant’s office to conduct an audit or inspection under subsection 5411(d);

(9) has failed to supervise reasonably an agent, investment adviser representative, or other individual, if the agent, investment adviser representative, or other individual was subject to the person’s supervision and committed a violation of this chapter or the predecessor act or a rule adopted or order issued under this chapter or the predecessor act within the previous 10 years;

(10) has not paid the proper filing fee within 30 days after having been notified by the Commissioner of a deficiency, but the Commissioner shall vacate an order under this subdivision when the deficiency is corrected;

(11) after notice and opportunity for a hearing, has been found within the previous 10 years:

(A) by a court of competent jurisdiction to have willfully violated the laws of a foreign jurisdiction under which the business of securities, commodities, investment, franchises, insurance, banking, or finance is regulated;

(B) to have been the subject of an order of a securities regulator of a foreign jurisdiction denying, revoking, or suspending the right to engage in the business of securities as a broker-dealer, agent, investment adviser, investment adviser representative, or similar person; or

(C) to have been suspended or expelled from membership by or participation in a securities exchange or securities association operating under the securities laws of a foreign jurisdiction;

(12) is the subject of a cease and desist order issued by the Securities and Exchange Commission or issued under the securities, commodities, investment, franchise, banking, finance, or insurance laws of a state;

(13) has engaged in dishonest or unethical practices in the securities, commodities, investment, franchise, banking, finance, or insurance business within the previous 10 years; or

(14) is not qualified on the basis of factors such as training, experience, and knowledge of the securities business. However, in the case of an application by an agent for a broker-dealer that is a member of a self-regulatory organization or by an individual for registration as an investment adviser representative, a denial order may not be based on this subdivision if the individual has successfully completed all examinations required by subsection (e) of this section. The Commissioner may require an applicant for registration under section 5402 or 5404 of this chapter who has not been registered in a state within the two years preceding the filing of an application in this State to complete successfully an examination.

(e) A rule adopted or order issued under this chapter may require that an examination, including an examination developed or approved by an organization of securities regulators, be completed successfully by a class of individuals or all individuals. An order issued under this chapter may waive, in whole or in part, an examination as to an individual, and a rule adopted under this chapter may waive, in whole or in part, an examination as to a class of individuals if the Commissioner determines that the examination is not necessary or appropriate in the public interest and for the protection of investors.

(f) If the Commissioner finds it necessary to preserve the public welfare, the Commissioner may suspend or deny an application summarily; restrict, condition, limit, or suspend a registration; or censure, bar, or impose a civil penalty on a registrant before final determination of an administrative proceeding. Upon the issuance of an order, the Commissioner shall promptly notify each person subject to the order that the order has been issued, the reasons for the action, and that, within 15 days after the receipt of a request in a record from the person, the matter will be scheduled for a hearing. If a hearing is not requested and none is ordered by the Commissioner within 30 days after the date of service of the order, the order becomes final by operation of law. If a hearing is requested or ordered, the Commissioner, after notice of and opportunity for hearing to each person subject to the order, may modify or vacate the order or extend the order until final determination.

(g) An order issued may not be issued under this section, except under subsection (f) of this section, without:

(1) appropriate notice to the applicant or registrant;

(2) opportunity for hearing; and

(3) findings of fact and conclusions of law in a record in accordance with the procedures set forth in 3 V.S.A. chapter 25 (Administrative Procedure Act).

(h) A person that controls, directly or indirectly, a person not in compliance with this section may be disciplined by order of the Commissioner under subsections (a) through (c) of this section to the same extent as the noncomplying person, unless the controlling person did not know, and in the exercise of reasonable care could not have known, of the existence of conduct that is a ground for discipline under this section.

(i) The Commissioner may not institute a proceeding under subsection (a), (b), or (c) of this section based solely on material facts actually known by the Commissioner unless an investigation or the proceeding is instituted within one year after the Commissioner actually acquires knowledge of the material facts.

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2005, No. 122 (Adj. Sess.), § 13; 2017, No. 80, § 3.)

Subchapter 5 Fraud and Liabilities

§ 5501 General fraud

It is unlawful for a person, in connection with the offer to sell, the offer to purchase, the sale, or the purchase of a security, directly or indirectly:

(1) to employ a device, scheme, or artifice to defraud;

(2) to make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or

(3) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5502 Prohibited conduct in providing investment advice

(a) It is unlawful for a person that advises others for compensation, either directly or indirectly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing, or selling securities or that, for compensation and as part of a regular business, issues or adopts analyses or reports relating to securities:

(1) to employ a device, scheme, or artifice to defraud another person;

(3) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person.

(b) A rule adopted under this chapter may define an act, practice, or course of business of an investment adviser or an investment adviser representative, other than a supervised person of a federal covered investment adviser, as fraudulent, deceptive, or manipulative, and prescribe means reasonably designed to prevent investment advisers and investment adviser representatives, other than supervised persons of a federal covered investment adviser, from engaging in acts, practices, and courses of business defined as fraudulent, deceptive, or manipulative.

(c) A rule adopted under this chapter may specify the contents of an investment advisory contract entered into, extended, or renewed by an investment adviser.

(Added 2005, No. 11, § 1, eff. Jan. 1, 2006.)

§ 5503 Evidentiary burden

(a) In a civil action or administrative proceeding under this chapter, a person claiming an exemption, exception, preemption, or exclusion has the burden to prove the applicability of the claim.

(b) In a criminal proceeding under this chapter, a person claiming an exemption, exception, preemption, or exclusion has the burden of going forward with evidence of the claim.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5504 Filing of sales and advertising literature

(a) Except as otherwise provided in subsection (b) of this section, a rule adopted or order issued under this chapter may require the filing of a prospectus, pamphlet, circular, form letter, advertisement, sales literature, or other advertising record relating to a security or investment advice, addressed or intended for distribution to prospective investors, including clients or prospective clients of a person registered or required to be registered as an investment adviser under this chapter.

(b) This section does not apply to sales and advertising literature specified in subsection (a) of this section that relates to a federal covered security, a federal covered investment adviser, or a security or transaction exempted by section 5201, 5202, or 5203 of this chapter except as required pursuant to subdivision 5201(7) of this chapter.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5505 Misleading filings

It is unlawful for a person to make or cause to be made, in a record that is used in an action or proceeding or filed under this chapter, a statement that, at the time and in the light of the circumstances under which it is made, is false or misleading in a material respect, or, in connection with the statement, to omit to state a material fact necessary to make the statement made, in the light of the circumstances under which it was made, not false or misleading.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5506 Misrepresentations concerning registration or exemption

The filing of an application for registration, a registration statement, a notice filing under this chapter, the registration of a person, the notice filing by a person, or the registration of a security under this chapter does not constitute a finding by the Commissioner that a record filed under this chapter is true, complete, and not misleading. The filing or registration or the availability of an exemption, exception, preemption, or exclusion for a security or a transaction does not mean that the Commissioner has passed upon the merits or qualifications of, or recommended or given approval to, a person, security, or transaction. It is unlawful to make, or cause to be made, to a purchaser, customer, client, or prospective customer or client a representation inconsistent with this section.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5507 Qualified immunity

A broker-dealer, agent, investment adviser, federal covered investment adviser, or investment adviser representative is not liable to another broker-dealer, agent, investment adviser, federal covered investment adviser, or investment adviser representative for defamation relating to a statement that is contained in a record required by the Commissioner, or designee of the Commissioner, the Securities and Exchange Commission, or a self-regulatory organization, unless the person knew, or should have known at the time that the statement was made, that it was false in a material respect or the person acted in reckless disregard of the statement’s truth or falsity.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5508 Criminal penalties

(a)(1) Upon conviction, any person shall be fined not more than $100,000.00 or imprisoned not more than five years, or both who:

(A) willfully violates this chapter, or a rule adopted or order issued under this chapter, except section 5504 of this chapter or the notice filing requirements of section 5302 or 5405 of this chapter; or

(B) willfully violates section 5505 of this chapter knowing the statement made to be false or misleading in a material respect.

(2) An individual convicted of violating a rule or order under this chapter may be fined, but may not be imprisoned, if the individual did not have knowledge of the rule or order.

(3) For purposes of subdivision (a)(1) of this subsection, the term “willfully” means purposely or willingly committing the act or making the omission and does not require an intent to violate the law or to injure another or to acquire any advantage.

(b) The Attorney General with or without a reference from the Commissioner may institute criminal proceedings under this chapter.

(c) This chapter does not limit the power of this State to punish a person for conduct that constitutes a crime under other laws of this State.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5509 Civil liability

(a) Enforcement of civil liability under this section is subject to the Securities Litigation Uniform Standards Act of 1998.

(b) A person is liable to the purchaser if the person sells a security in violation of sections 5301, 5501, or 5502 of this chapter, the purchaser not knowing the untruth or omission or deceptive nature of the conduct and the seller not sustaining the burden of proof that the seller did not know and, in the exercise of reasonable care, could not have known of the untruth or omission or deceptive nature of the conduct. An action under this subsection is governed by the following:

(1) The purchaser may maintain an action to recover the consideration paid for the security, less the amount of any income received on the security, and interest at the legal rate of interest from the date of the purchase, costs, and reasonable attorney’s fees determined by the court, upon the tender of the security, or for actual damages as provided in subdivision (3) of this subsection.

(2) The tender referred to in subdivision (1) of this subsection may be made any time before entry of judgment. Tender requires only notice in a record of ownership of the security and willingness to exchange the security for the amount specified. A purchaser that no longer owns the security may recover actual damages as provided in subdivision (3) of this subsection.

(3) Actual damages in an action arising under this subsection are the amount that would be recoverable upon a tender less the value of the security when the purchaser disposed of it, and interest at the legal rate of interest from the date of the purchase, costs, and reasonable attorney’s fees determined by the court.

(c) A person is liable to the seller if the person buys a security in violation of section 5501 or 5502 of this chapter, the seller not knowing of the untruth or omission or deceptive nature of the conduct, and the purchaser not sustaining the burden of proof that the purchaser did not know, and in the exercise of reasonable care could not have known, of the untruth or omission or deceptive nature of the conduct. An action under this subsection is governed by the following:

(1) The seller may maintain an action to recover the security, and any income received on the security, costs, and reasonable attorney’s fees determined by the court, upon the tender of the purchase price, or for actual damages as provided in subdivision (3) of this subsection.

(2) The tender referred to in subdivision (1) of this subsection may be made any time before entry of judgment. Tender requires only notice in a record of the present ability to pay the amount tendered and willingness to take delivery of the security for the amount specified. If the purchaser no longer owns the security, the seller may recover actual damages as provided in subdivision (3) of this subsection.

(3) Actual damages in an action arising under this subsection are the difference between the price at which the security was sold and the value the security would have had at the time of the sale in the absence of the purchaser’s conduct causing liability, the interest at the legal rate of interest from the date of the sale of the security, the costs, and the reasonable attorney’s fees determined by the court.

(d) A person acting as a broker-dealer or agent that sells or buys a security in violation of subsection 5401(a) or 5402(a) or section 5506 of this chapter is liable to the customer. The customer, if a purchaser, may maintain an action for recovery of actual damages as specified in subdivisions (b)(1) through (3) of this section, or, if a seller, for a remedy as specified in subdivisions (c)(1) through (3) of this section.

(e) A person acting as an investment adviser or investment adviser representative that provides investment advice for compensation in violation of subsection 5403(a) or 5404(a) or section 5506 of this chapter is liable to the client. The client may maintain an action to recover the consideration paid for the advice, interest at the legal rate of interest from the date of payment, costs, and reasonable attorney’s fees determined by the court.

(f) A person that receives directly or indirectly any consideration for providing investment advice to another person and that employs a device, scheme, or artifice to defraud the other person or engages in an act, practice, or course of business that operates or would operate as a fraud or deceit on the other person or otherwise violates section 5502 of this chapter is liable to the other person. An action under this subsection is governed by the following:

(1) The person wronged may maintain an action to recover the consideration paid for the advice and the amount of any actual damages caused by the fraudulent conduct, interest at the legal rate of interest from the date of the fraudulent conduct, costs, and reasonable attorney’s fees determined by the court, less the amount of any income received as a result of the fraudulent conduct.

(2) This subsection does not apply to a broker-dealer or its agents if the investment advice provided is solely incidental to transacting business as a broker-dealer and no special compensation is received for the investment advice.

(g) The following persons are liable jointly and severally with and to the same extent as persons liable under subsections (b) through (f) of this section:

(1) a person that directly or indirectly controls a person liable under subsections (b) through (f) of this section, unless the controlling person sustains the burden of proof that the person did not know, and in the exercise of reasonable care could not have known, of the existence of conduct by reason of which the liability is alleged to exist;

(2) an individual who is a managing partner, executive officer, or director of a person liable under subsections (b) through (f) of this section, including an individual having a similar status or performing similar functions, unless the individual sustains the burden of proof that the individual did not know and, in the exercise of reasonable care could not have known, of the existence of conduct by reason of which the liability is alleged to exist;

(3) an individual who is an employee of or associated with a person liable under subsections (b) through (f) of this section and who materially aids the conduct giving rise to the liability, unless the individual sustains the burden of proof that the individual did not know and, in the exercise of reasonable care could not have known, of the existence of conduct by reason of which the liability is alleged to exist; and

(4) a person that is a broker-dealer, agent, investment adviser, or investment adviser representative that materially aids the conduct giving rise to the liability under subsections (b) through (f) of this section, unless the person sustains the burden of proof that the person did not know and, in the exercise of reasonable care could not have known, of the existence of conduct by reason of which liability is alleged to exist.

(h) A person liable under this section has a right of contribution as in cases of contract against any other person liable under this section for the same conduct.

(i) A cause of action under this section survives the death of an individual who might have been a plaintiff or defendant.

(j) A person may not obtain relief:

(1) under subsection (b) of this section for violation of section 5301 of this chapter, or under subsection (d) or (e) of this section, unless the action is instituted within one year after the violation occurred; or

(2) under subsection (b) of this section, other than for violation of section 5301 of this chapter, or under subsection (c) or (f) of this section, unless the action is instituted within the earlier of two years after discovery of the facts constituting the violation or five years after the violation.

(k) A person that has made, or has engaged in the performance of, a contract in violation of this chapter or a rule adopted or order issued under this chapter, or that has acquired a purported right under the contract with knowledge of conduct by reason of which its making or performance was in violation of this chapter, may not base an action on the contract.

(l) A condition, stipulation, or provision binding a person purchasing or selling a security or receiving investment advice to waive compliance with this chapter or a rule adopted or order issued under this chapter is void.

(m) The rights and remedies provided by this chapter are in addition to any other rights or remedies that may exist, but this chapter does not create a cause of action not specified in this section or subsection 5411(e) of this chapter.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5510 Rescission offers

(a) Unless a purchaser, seller, or recipient of investment advice provides written notice of a dispute to the seller, purchaser, or provider of investment advice in conformity to subsection (b) of this section, such purchaser, seller, or recipient of investment advice may not maintain an action under section 5509 of this chapter if:

(1) The purchaser, seller, or recipient of investment advice receives in a record, before the action is instituted:

(A) an offer stating the respect in which liability under section 5509 of this chapter may have arisen and fairly advising the purchaser, seller, or recipient of investment advice of that person’s rights in connection with the offer, and any financial or other information necessary to correct all material misrepresentations or omissions in the information that was required by this chapter to be furnished to that person at the time of the purchase, sale, or investment advice;

(B) if the basis for relief under this section may have been a violation of subsection 5509(b) of this chapter, an offer to repurchase the security for cash, payable on delivery of the security, equal to the consideration paid, and interest at the legal rate of interest from the date of the purchase, less the amount of any income received on the security, or, if the purchaser no longer owns the security, an offer to pay the purchaser upon acceptance of the offer damages in an amount that would be recoverable upon a tender, less the value of the security when the purchaser disposed of it, and interest at the legal rate of interest from the date of the purchase in cash equal to the damages computed in the manner provided in this subsection;

(C) if the basis for relief under this section may have been a violation of subsection 5509(c) of this chapter, an offer to tender the security, on payment by the seller of an amount equal to the purchase price paid, less income received on the security by the purchaser and interest at the legal rate of interest from the date of the sale; or if the purchaser no longer owns the security, an offer to pay the seller upon acceptance of the offer, in cash, damages in the amount of the difference between the price at which the security was purchased and the value the security would have had at the time of the purchase in the absence of the purchaser’s conduct that may have caused liability and interest at the legal rate of interest from the date of the sale;

(D) if the basis for relief under this section may have been a violation of subsection 5509(d) of this chapter; and if the customer is a purchaser, an offer to pay as specified in subdivision (B) of this subdivision (1); or, if the customer is a seller, an offer to tender or to pay as specified in subdivision (C) of this subdivision (1);

(E) if the basis for relief under this section may have been a violation of subsection 5509(e) of this chapter, an offer to reimburse in cash the consideration paid for the advice and interest at the legal rate of interest from the date of payment; or

(F) if the basis for relief under this section may have been a violation of subsection 5509(f) of this chapter, an offer to reimburse in cash the consideration paid for the advice, the amount of any actual damages that may have been caused by the conduct, and interest at the legal rate of interest from the date of the violation causing the loss;

(2) the offer under subdivision (1) of this subsection states that it must be accepted by the purchaser, seller, or recipient of investment advice within 30 days after the date of its receipt by the purchaser, seller, or recipient of investment advice or any shorter period, of not less than three days, that the Commissioner, by order, specifies;

(3) the offeror has the present ability to pay the amount offered or to tender the security under subdivision (1) of this subsection;

(4) the offer under subdivision (1) of this subsection is delivered to the purchaser, seller, or recipient of investment advice, or sent in a manner that ensures receipt by the purchaser, seller, or recipient of investment advice; and

(5) the purchaser, seller, or recipient of investment advice that accepts the offer under subdivision (1) of this subsection in a record within the period specified under subdivision (2) of this subsection is paid in accordance with the terms of the offer.

(b) When a purchaser, seller, or recipient of investment advice provides written notice of a dispute containing a description of the nature of the dispute, the dates on which it occurred, a listing of the persons or entities involved to the seller, purchaser, or provider of investment advice, the person receiving such notice shall have 90 days to resolve the dispute within the terms of subsection (a) of this section. After the expiration of 90 days from the receipt of such notice, the terms of subsection (a) shall not apply to prohibit the pursuit of relief by such purchaser, seller, or recipient of investment advice under section 5509 of this chapter unless the terms of subsection (a) have been satisfied. Such notice shall be sent via certified mail, return receipt requested, or via a national courier service to the principal office and contact person of the purchaser, seller, or provider of investment advice, which:

(1) in the case of a broker-dealer firm or its agent, shall be the principal office and contact person for the firm as set forth in such firm’s form B-D registration on file with the Commissioner (or any similar registration form adopted by the Commissioner hereafter); and

(2) in the case of an investment adviser firm or its representative, shall be the principal office and contact person for the firm as set forth in such firm’s form ADV registration or notice filing on file with the Commissioner (or any similar registration or notification form adopted by the Commissioner hereafter).

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

Subchapter 6 Administration and Judicial Review

§ 5601 Administration

(a) The Commissioner shall administer this chapter.

(b) It is unlawful for the Commissioner or an officer, employee, or designee of the Commissioner to use for personal benefit or the benefit of others records or other information obtained by or filed with the Commissioner that are not public under subsection 5607(b) of this title. This chapter does not authorize the Commissioner or an officer, employee, or designee of the Commissioner to disclose the record or information, except in accordance with section 5602, subsection 5607(c), or section 5608 of this title.

(c) This chapter does not create or diminish a privilege or exemption that exists at common law, by statute or rule, or otherwise.

(d) The Commissioner may develop and implement financial services education initiatives to inform the public about financial services, with particular emphasis on the prevention and detection of securities, banking, and insurance fraud. In developing and implementing these initiatives, the Commissioner may collaborate with public and nonprofit organizations with an interest in financial services education. The Commissioner may accept a grant or donation from a person or from a nonprofit organization, regardless of whether the person or organization is affiliated with the financial services industry, to develop and implement financial services education initiatives. This subsection does not authorize the Commissioner to require participation or monetary contributions of a registrant in financial services education program.

(e) [Repealed.]

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2011, No. 21, § 12; 2019, No. 57, § 17.)

§ 5602 Investigations and subpoenas

(a) The Commissioner may:

(1) conduct public or private investigations within or outside this State that the Commissioner considers necessary or appropriate to determine whether a person has violated, is violating, or is about to violate this chapter or a rule adopted or an order issued under this chapter, or to aid in the enforcement of this chapter or in the adoption of rules and forms under this chapter;

(2) require or permit a person to testify, file a statement, or produce a record, under oath or otherwise as the Commissioner determines, as to all the facts and circumstances concerning a matter to be investigated or about which an action or proceeding is to be instituted; and

(3) publish a record concerning an action, a proceeding, or an investigation under, or a violation of, this chapter or a rule adopted or an order issued under this chapter if the Commissioner determines it is necessary or appropriate in the public interest and for the protection of investors.

(b) For the purpose of an investigation under this chapter, the Commissioner or his or her designated officer may administer oaths and affirmations, subpoena witnesses, seek compulsion of attendance, take evidence, require the filing of statements, and require the production of any records that the Commissioner considers relevant or material to the investigation. Each witness who appears before the Commissioner under subpoena shall receive a fee and mileage as provided for witnesses in civil cases in Superior Courts; provided, however, any person subject to regulation under this title shall not be eligible to receive fees or mileage under this section.

(c) If a person does not appear or refuses to testify, file a statement, produce records, or otherwise does not obey a subpoena as required by the Commissioner under this chapter, the Commissioner may, at the Commissioner’s discretion, assess a penalty pursuant to the provisions of 8 V.S.A. § 13(b), or may apply to the Superior Court of Washington County or a court of another state to enforce compliance. The court may:

(1) hold the person in contempt;

(2) order the person to appear before the Commissioner;

(3) order the person to testify about the matter under investigation or in question;

(4) order the production of records;

(5) grant injunctive relief, including restricting or prohibiting the offer or sale of securities or the providing of investment advice;

(6) impose a civil penalty of not less than $5,000.00 and not greater than $25,000.00 for each violation; and

(7) grant any other necessary or appropriate relief.

(d) This section does not preclude a person from applying to the Superior Court of Washington County or a court of another state for relief from a request to appear, testify, file a statement, produce records, or obey a subpoena.

(e) An individual is not excused from attending, testifying, filing a statement, producing a record or other evidence, or obeying a subpoena of the Commissioner under this chapter or in an action or proceeding instituted by the Commissioner under this chapter on the ground that the required testimony, statement, record, or other evidence, directly or indirectly, may tend to incriminate the individual or subject the individual to a criminal fine, penalty, or forfeiture. If the individual refuses to testify, file a statement, or produce a record or other evidence on the basis of the individual’s privilege against self-incrimination, the Commissioner, subject to subsection (f) of this section, may apply to the Washington County Superior Court to compel the testimony, the filing of the statement, the production of the record, or the giving of other evidence. The testimony, record, or other evidence compelled under such an order may not be used, directly or indirectly, against the individual in a criminal case, except in a prosecution for perjury or contempt or otherwise failing to comply with the order.

(f) Unless presented by an emergency or exigent circumstances, the Commissioner shall give notice to the Attorney General and U.S. Attorney not less than five business days before applying to the Washington County Superior Court to compel the testimony, the filing of the statement, the production of the record, or the giving of other evidence under subsection (e) of this section. In the case of an emergency or exigent circumstances, the Commissioner shall notify the Attorney General and U.S. Attorney as soon as possible before applying to the Washington County Superior Court.

(g) At the request of the securities regulator of another state or a foreign jurisdiction, the Commissioner may provide assistance if the requesting regulator states that it is conducting an investigation to determine whether a person has violated, is violating, or is about to violate a law or rule of the other state or foreign jurisdiction relating to securities matters that the requesting regulator administers or enforces. The Commissioner may provide the assistance by using the authority to investigate and the powers conferred by this section as the Commissioner determines is necessary or appropriate. The assistance may be provided without regard to whether the conduct described in the request would also constitute a violation of this chapter or other law of this State if occurring in this State. In deciding whether to provide the assistance, the Commissioner may consider whether the requesting regulator is permitted and has agreed to provide assistance reciprocally within its state or foreign jurisdiction to the Commissioner when requested, whether compliance with the request would violate or prejudice the public policy of this State, and the availability of resources and employees of the Commissioner to carry out the request for assistance.

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2013, No. 29, § 20, eff. May 13, 2013; 2017, No. 11, § 11.)

§ 5603 Civil enforcement

(a) If the Commissioner believes that a person has engaged, is engaging, or is about to engage in an act, practice, or course of business constituting a violation of this chapter or a rule adopted or order issued under this chapter or that a person has, is, or is about to engage in an act, practice, or course of business that materially aids a violation of this chapter or a rule adopted or order issued under this chapter, the Commissioner may maintain an action in the Superior Court of Washington County to enjoin the act, practice, or course of business and to enforce compliance with this chapter or a rule adopted or order issued under this chapter.

(b) In an action under this section and on a proper showing, the court may:

(1) issue a permanent or temporary injunction, restraining order, or declaratory judgment;

(2) order other appropriate or ancillary relief, which may include:

(A) an asset freeze, accounting, writ of attachment, writ of general or specific execution, and appointment of a receiver or conservator, that may be the Commissioner, for the defendant or the defendant’s assets;

(B) ordering the Commissioner to take charge and control of a defendant’s property, including investment accounts and accounts in a depository institution, rents, and profits; to collect debts; and to acquire and dispose of property;

(C) imposing a civil penalty up to $15,000.00 for each violation; an order of rescission, restitution, or disgorgement directed to a person that has engaged in an act, practice, or course of business constituting a violation of this chapter or the predecessor act or a rule adopted or an order issued under this chapter or the predecessor act. The court may increase a civil penalty amount by not more than $5,000.00 per violation for violations involving a person who is a vulnerable adult as defined in 33 V.S.A. § 6902(14). The limitations on civil penalties contained in this subdivision shall not apply to settlement agreements; and

(D) ordering the payment of prejudgment and postjudgment interest; or

(3) order such other relief as the court considers appropriate.

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2017, No. 80, § 4.)

§ 5604 Administrative enforcement

(a) If the Commissioner determines that a person has engaged, is engaging, or is about to engage in an act, practice, or course of business constituting a violation of this chapter or a rule adopted or order issued under this chapter or that a person has materially aided, is materially aiding, or is about to materially aid an act, practice, or course of business constituting a violation of this chapter or a rule adopted or order issued under this chapter, the Commissioner may:

(1) issue an order directing the person to cease and desist from engaging in the act, practice, or course of business or to take other action necessary or appropriate to comply with this chapter;

(2) issue an order denying, suspending, revoking, or conditioning the exemptions for a broker-dealer under subdivision 5401(b)(1)(D) or (F) of this title or an investment adviser under subdivision 5403(b)(1)(C) of this title; or

(3) issue an order under section 5204 of this title.

(b) An order under subsection (a) of this section is effective on the date of issuance. Upon issuance of the order, the Commissioner shall promptly serve each person subject to the order with a copy of the order and a notice that the order has been entered. The order must include a statement of any civil penalty or costs of investigation the Commissioner will seek, a statement of the reasons for the order, and notice that, within 15 days after receipt of a request in a record from the person, the matter will be scheduled for a hearing. If a person subject to the order does not request a hearing and none is ordered by the Commissioner within 30 days after the date of service of the order, the order, including the imposition of a civil penalty or requirement for payment of the costs of investigation sought in a statement in the order, becomes final as to that person by operation of law. If a hearing is requested or ordered, the Commissioner, after notice of and opportunity for hearing to each person subject to the order, may modify or vacate the order or extend it until final determination.

(c) If a hearing is requested or ordered pursuant to subsection (b) of this section, a hearing must be held in accordance with the provisions of 3 V.S.A. chapter 25 (Administrative Procedure Act). A final order may not be issued unless the Commissioner makes findings of fact and conclusions of law in a record in accordance with the requirements of 3 V.S.A. § 812. The final order may make final, vacate, or modify the order issued under subsection (a) of this section.

(d) In a final order under subsection (b) or (c) of this section, the Commissioner may impose a civil penalty of not more than $15,000.00 for each violation. The Commissioner may also require a person to make restitution or provide disgorgement of any sums shown to have been obtained in violation of this chapter, plus interest at the legal rate. The limitations on civil penalties contained in this subsection shall not apply to settlement agreements. In accordance with 8 V.S.A. § 24(e), the Commissioner may increase a civil penalty amount by not more than $5,000.00 per violation for violations involving a person who is a vulnerable adult as defined in 33 V.S.A. § 6902(34).

(e) For purposes of determining any sanction to be imposed under subsections (a) through (d) of this section, the Commissioner shall consider among other factors, the frequency and persistence of the conduct constituting a violation of this chapter or a rule or order of the Commissioner under this chapter and the number of persons adversely affected by the conduct, and the resources of the person committing the violation.

(f) In a final order, the Commissioner may charge the actual cost of an investigation or proceeding for a violation of this chapter or a rule adopted or order issued under this chapter.

(g) If a petition for judicial review of a final order is not filed in accordance with section 5609 of this title, the Commissioner may file a certified copy of the final order with the clerk of a court of competent jurisdiction. The order so filed has the same effect as a judgment of the court and may be recorded, enforced, or satisfied in the same manner as a judgment of the court.

(h) If a person does not comply with an order under this section, the Commissioner may petition a court of competent jurisdiction to enforce the order. The court may not require the Commissioner to post a bond in an action or proceeding under this section. If the court finds, after service and opportunity for hearing, that the person was not in compliance with the order, the court may adjudge the person in civil contempt of the order. The court may impose a further civil penalty against the person for contempt in an amount not less than $5,000.00 but not greater than $25,000.00 for each violation and may grant any other relief the court determines is just and proper in the circumstances.

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2011, No. 78 (Adj. Sess.), § 34; 2017, No. 80, § 5; 2023, No. 110 (Adj. Sess.), § 19, eff. July 1, 2024.)

§ 5605 Rules, forms, orders, interpretative opinions, and hearings

(a) The Commissioner may:

(1) issue forms and orders and, after notice and comment and in accordance with the provisions of 3 V.S.A. chapter 25 (Administrative Procedure Act), may adopt and amend rules necessary or appropriate to carry out this chapter and may repeal rules, including rules and forms governing registration statements, applications, notice filings, reports, and other records;

(2) by rule, define terms, whether or not used in this chapter, but those definitions may not be inconsistent with this chapter; and

(3) by rule, classify securities, persons, and transactions and adopt different requirements for different classes.

(b) Under this chapter, a rule or form may not be adopted or amended, or an order issued or amended, unless the Commissioner finds that the rule, form, order, or amendment is necessary or appropriate in the public interest or for the protection of investors and is consistent with the purposes intended by this chapter. In adopting, amending, and repealing rules and forms, section 5608 of this chapter applies in order to achieve uniformity among the states and coordination with federal laws in the form and content of registration statements, applications, reports, and other records, including the adoption of uniform rules, forms, and procedures.

(c) Subject to 15 U.S.C. § 80b-15(h) and 15 U.S.C. § 80b-222, the Commissioner may require that a financial statement filed under this chapter be prepared in accordance with generally accepted accounting principles in the United States and comply with other requirements specified by rule adopted or order issued under this chapter. A rule adopted or order issued under this chapter may establish:

(1) subject to 15 U.S.C. § 80b-15(h), the form and content of financial statements required under this chapter;

(2) whether unconsolidated financial statements must be filed; and

(3) whether required financial statements must be audited by an independent certified public accountant.

(d) The Commissioner may in the Commissioner’s sole discretion provide interpretative opinions or issue determinations that the Commissioner will not institute a proceeding or an action under this chapter against a specified person for engaging in a specified act, practice, or course of business if the determination is consistent with this chapter. A rule adopted or order issued under this chapter may establish a reasonable charge for interpretative opinions or determinations that the Commissioner will not institute an action or a proceeding under this chapter.

(e) A penalty under this chapter may not be imposed for and liability does not arise from conduct that is engaged in or omitted in good faith believing it conforms to a rule, form, or order of the Commissioner under this chapter.

(f) A hearing in an administrative proceeding under this chapter must be conducted in public unless the Commissioner for good cause consistent with this chapter determines that the hearing will not be so conducted.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5606 Administrative files and opinions

(a) The Commissioner shall maintain, or designate a person to maintain, a register of applications for registration of securities; registration statements; notice filings; applications for registration of broker-dealers, agents, investment advisers, and investment adviser representatives; notice filings by federal covered investment advisers that are or have been effective under this chapter or the predecessor act; notices of claims of exemption from registration or notice filing requirements contained in a record; orders issued under this chapter or the predecessor act; and interpretative opinions or no action determinations issued under this chapter.

(b) The Commissioner shall make all rules, forms, interpretative opinions, and orders available to the public.

(c) The Commissioner shall furnish a copy of a record that is a public record or a certification that the public record does not exist to a person that so requests. A rule adopted under this chapter may establish a reasonable charge for furnishing the record or certification. A copy of the record certified or a certificate by the Commissioner of a record’s nonexistence is prima facie evidence of a record or its nonexistence.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5607 Public records; confidentiality

(a) Except as otherwise provided in subsection (b) of this section, records obtained by the Commissioner or filed under this chapter, including a record contained in or filed with a registration statement, application, notice filing, or report, are public records and are available for public examination.

(b) The following records are not public records and are not available for public examination and copying under the Public Records Act or under subsection (a) of this section:

(1) a record obtained by the Commissioner in connection with an audit or inspection under subsection 5411(d) of this title or an investigation under section 5602 of this title;

(2) a part of a record filed in connection with a registration statement under sections 5301 and 5303 through 5305 of this title or a record under subsection 5411(d) of this title that contains trade secrets or confidential information if the person filing the registration statement or report has asserted a claim of confidentiality or privilege that is authorized by law;

(3) a record that is not required to be provided to the Commissioner or filed under this chapter and is provided to the Commissioner only on the condition that the record will not be subject to public examination or disclosure;

(4) a nonpublic record received from a person specified in subsection 5608(a) of this title;

(5) any Social Security number, residential address unless used as a business address, and residential telephone number unless used as a business telephone number, contained in a record that is filed;

(6) a record obtained by the Commissioner through a designee of the Commissioner that a rule or order under this chapter determines has been:

(A) expunged from the Commissioner’s records by the designee; or

(B) determined to be nonpublic or nondisclosable by that designee if the Commissioner finds the determination to be in the public interest and for the protection of investors;

(7) records relating to the notice requirement in subsection 5602(f) of this title; and

(8) records otherwise exempt from public disclosure pursuant to 1 V.S.A. § 317(c).

(c) If disclosure is for the purpose of a civil, administrative, or criminal investigation, action, or proceeding or to a person specified in subsection 5608(a) of this title, the Commissioner may disclose a record obtained in connection with an audit or inspection under subsection 5411(d) of this title or a record obtained in connection with an investigation under section 5602 of this title.

(Added 2005, No. 11, § 1, eff. July 1, 2006; amended 2013, No. 29, § 21, eff. May 13, 2013.)

§ 5608 Uniformity and cooperation with other agencies

(a) The Commissioner shall, in his or her discretion, cooperate, coordinate, consult, and, subject to section 5607 of this chapter, share records and information with the securities regulator of another state, Canada, a Canadian province or territory, a foreign jurisdiction, the Securities and Exchange Commission, the U.S. Department of Justice, the Commodity Futures Trading Commission, the Federal Trade Commission, the Securities Investor Protection Corporation, a self-regulatory organization, a national or international organization of securities regulators, a federal or state banking and insurance regulator, and a governmental law enforcement agency to effectuate greater uniformity in securities matters among the federal government, self-regulatory organizations, states, and foreign governments.

(b) In cooperating, coordinating, consulting, and sharing records and information under this section and in acting by rule, order, or waiver under this chapter, the Commissioner shall, in his or her discretion, take into consideration in carrying out the public interest the following general policies:

(1) maximizing effectiveness of regulation for the protection of investors;

(2) maximizing uniformity in federal and state regulatory standards; and

(3) minimizing burdens on the business of capital formation, without adversely affecting essentials of investor protection.

(c) The cooperation, coordination, consultation, and sharing of records and information authorized by this section includes:

(1) establishing or employing one or more designees as a central depository for registration and notice filings under this chapter and for records required or allowed to be maintained under this chapter;

(2) developing and maintaining uniform forms;

(3) conducting a joint examination or investigation;

(4) holding a joint administrative hearing;

(5) instituting and prosecuting a joint civil or administrative proceeding;

(6) sharing and exchanging personnel;

(7) coordinating registrations under sections 5301 and 5401 through 5404 of this chapter and exemptions under section 5203 of this chapter;

(8) sharing and exchanging records, subject to section 5607 of this chapter;

(9) formulating rules, statements of policy, guidelines, forms, and interpretative opinions and releases;

(10) formulating common systems and procedures;

(11) notifying the public of proposed rules, forms, statements of policy, and guidelines;

(12) attending conferences and other meetings among securities regulators, which may include representatives of governmental and private sector organizations involved in capital formation, deemed necessary or appropriate to promote or achieve uniformity; and

(13) developing and maintaining a uniform exemption from registration for small issuers, and taking other steps to reduce the burden of raising investment capital by small businesses.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5609 Judicial review

Any person aggrieved and directly affected by a final order issued by the Commissioner under this chapter may appeal to the Superior Court of Washington County. The appeal shall be heard by the court de novo. The filing of an appeal shall not stay enforcement of the order, but the court may order a stay on such terms as it deems proper.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5610 Jurisdiction

(a) Sections 5301 and 5302, subsections 5401(a), 5402(a), 5403(a), and 5404(a) and sections 5501, 5506, 5509, and 5510 of this chapter do not apply to a person that sells or offers to sell a security unless the offer to sell or the sale is made in this State or the offer to purchases or the purchase is made and accepted in this State.

(b) Subsections 5401(a), 5402(a), 5403(a), 5404(a), and sections 5501, 5506, 5509, and 5510 of this chapter do not apply to a person that purchases or offers to purchase a security unless the offer to purchase or the purchase is made in this State or the offer to sell or the sale is made and accepted in this State.

(c) For the purpose of this section, an offer to sell or to purchase a security is made in this State, whether or not either party is then present in this State, if the offer:

(1) originates from within this State; or

(2) is directed by the offeror to a place in this State and received at the place to which it is directed.

(d) For the purpose of this section, an offer to purchase or to sell is accepted in this State, whether or not either party is then present in this State, if the acceptance:

(1) is communicated to the offeror in this State and the offeree reasonably believes the offeror to be present in this State and the acceptance is received at the place in this State to which it is directed; and

(2) has not previously been communicated to the offeror, orally or in a record, outside this State.

(e) An offer to sell or to purchase is not made in this State when a publisher circulates or there is circulated on the publisher’s behalf in this State a bona fide newspaper or other publication of general, regular, and paid circulation that is not published in this State, or that is published in this State but has had more than two-thirds of its circulation outside this State during the previous 12 months or when a radio or television program or other electronic communication originating outside this State is received in this State. A radio or television program or other electronic communication is considered as having originated in this State if either the broadcast studio or the originating source of transmission is located in this State, unless:

(1) the program or communication is syndicated and distributed from outside this State for redistribution to the general public in this State;

(2) the program or communication is supplied by a radio, television, or other electronic network with the electronic signal originating from outside this State for redistribution to the general public in this State;

(3) the program or communication is an electronic communication that originates outside this State and is captured for redistribution to the general public in this State by a community antenna or cable, radio, cable television, or other electronic system; or

(4) the program or communication consists of an electronic communication that originates in this State, but which is not intended for distribution to the general public in this State.

(f) Subsections 5403(a), 5404(a), and 5405(a) and sections 5502, 5505, and 5506 of this chapter apply to a person if the person engages in an act, practice, or course of business instrumental in effecting prohibited or actionable conduct in this State, whether or not either party is then present in this State.

(g) This section does not limit the scope of personal jurisdiction to the extent such jurisdiction may be established pursuant to 12 V.S.A. § 913 (the Vermont “long arm” statute).

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5611 Service of process

(a) A consent to service of process complying with this section required by this chapter must be signed and filed in the form required by a rule or order under this chapter. A consent appointing the Commissioner the person’s agent for service of process in a noncriminal action or proceeding against the person, or the person’s successor or personal representative under this chapter, or a rule adopted or order issued under this chapter after the consent is filed, has the same force and validity as if the service were made personally on the person filing the consent. A person that has filed a consent complying with this subsection in connection with a previous application for registration or notice filing need not file an additional consent.

(b) If a person, including a nonresident of this State, engages in an act, practice, or course of business prohibited or made actionable by this chapter or a rule adopted or order issued under this chapter and the person has not filed a consent to service of process under subsection (a) of this section, the act, practice, or course of business constitutes the appointment of the Commissioner as the person’s agent for service of process in a noncriminal action or proceeding against the person or the person’s successor or personal representative.

(c) Service under subsection (a) or (b) of this section may be made by providing a copy of the process to the office of the Commissioner, but it is not effective unless:

(1) the plaintiff, which may be the Commissioner, promptly sends notice of the service and a copy of the process, return receipt requested, to the defendant or respondent at the address set forth in the consent to service of process or, if a consent to service of process has not been filed, at the last known address or takes other reasonable steps to give notice; and

(2) the plaintiff files an affidavit of compliance with this subsection in the action or proceeding on or before the return day of the process, if any, or within the time that the court or the Commissioner in a proceeding before the Commissioner allows.

(d) Service pursuant to subsection (c) of this section may be used in a proceeding before the Commissioner or by the Commissioner in a civil action in which the Commissioner is the moving party.

(e) If process is served under subsection (c) of this section, the court or the Commissioner in a proceeding before the Commissioner shall order continuances as are necessary or appropriate to afford the defendant or respondent reasonable opportunity to defend.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5612 Severability clause

If any provision of this chapter or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end, the provisions of this chapter are severable.

(Added 2005, No. 11, § 1, eff. July 1, 2006.)

§ 5613 Collection and disposition of fees

(a) The fees provided for in this chapter shall be collected by the Commissioner and covered into the State Treasury except as provided in subsections (b) and (e) of this section.

(b) There is hereby created a fund to be known as the Securities Regulation and Supervision Fund. The Fund shall be used for the purpose of providing the Commissioner the means to administer the provisions of this chapter. All agent and investment adviser representative fees received pursuant to subsections 5410(b) and (d) of this title, and all examination fees and investigation expenses received pursuant to section 5614 of this title shall be transmitted to the State Treasurer and credited to this Fund. All payments from the Securities Regulatory and Supervision Fund for the maintenance of staff and associated expenses, including contractual services as necessary, shall be disbursed from the State Treasury only upon warrants issued by the Commissioner of Finance and Management, after receipt of proper documentation regarding services rendered and expenses incurred. The Fund shall be administered pursuant to 32 V.S.A. chapter 7, subchapter 5.

(c) At the end of each fiscal year, the balance in the Securities Regulatory and Supervision Fund shall be transferred to the General Fund.

(d) The Commissioner of Finance and Management may anticipate receipts to the Securities Regulatory and Supervision Fund and issue warrants based thereon.

(e) In any fiscal year in which revenues deposited in the Financial Institution Supervision Fund established by 8 V.S.A. § 19(f) are insufficient to support the annual appropriation to the Banking Division, the Commissioner may transfer no more than a sum necessary to meet the shortfall from the Fund established by this section to the Financial Institution Supervision Fund.

(Added 2007, No. 49, § 23; 2007, No. 65, § 398; amended 2007, No. 65 § 87, eff. June 4, 2007; 2007, No. 192 (Adj. Sess.), § 6.001; 2013, No. 1, § 80.)

§ 5614 Recovery of expenses

(a) Whenever it is necessary for the Commissioner to incur any expense in connection with any application, notification, registration, license, investigation, or administrative proceeding, the Commissioner may require that any person who is the subject of such application, notification, registration, license, investigation, or administrative proceeding pay the reasonable costs incurred by the Department.

(b) The Commissioner may impose a reasonable fee for the expense of conducting an examination, audit, or inspection under this chapter, including reimbursement to the Commissioner for actual traveling and lodging expenses of the Commissioner or employee in connection with such examination, audit, or inspection.

(c) The provisions of this section are in addition to, and not in limitation of, any other provision of this chapter regarding fees and recovery of expenses.

(Added 2007, No. 49, § 24; 2007, No. 76, § 25, eff. June 7, 2007.)

§ 5615 Repealed

[Repealed]

2017, No. 80, § 7.

§ 5616 Vermont Financial Services Education and Victim Restitution Special Fund

(a) Purpose. The purpose of this section is to provide:

(1) funds for the purposes specified in subsection 5601(d) of this title;

(2) restitution assistance to victims of securities violations who:

(A) were awarded restitution in a final order issued by the Commissioner or were awarded restitution in the final order in a legal action initiated by the Commissioner;

(B) have not received the full amount of restitution ordered before the application for restitution assistance is due; and

(C) demonstrate to the Commissioner’s satisfaction that there is no reasonable likelihood that they will receive the full amount of restitution in the future; and

(3) funds for the purposes specified in section 5617 of this title.

(b) Definitions. As used in this section:

(1) “Claimant” means a person who files an application for restitution assistance under this section on behalf of a victim. The claimant and the victim may be the same but do not have to be the same. The term includes the named party in a restitution award in a final order, the executor of a named party in a restitution award in a final order, and the heirs and assigns of a named party in a restitution award in a final order.

(2) “Final order” means a final order issued by the Commissioner or a final order in a legal action initiated by the Commissioner.

(3) “Fund” means the Vermont Financial Services Education and Victim Restitution Special Fund created by this section.

(4) “Securities violation” means a violation of this chapter and any related administrative rules.

(5) “Victim” means a person who was awarded restitution in a final order.

(6) “Vulnerable person” means:

(A) a person who meets the definition of vulnerable person under 33 V.S.A. § 6902(14); or

(B) a person who is at least 60 years of age.

(1) A natural person who was a resident of Vermont at the time of the alleged fraud is eligible for restitution assistance.

(2) The Commissioner shall not award securities restitution assistance under this section:

(A) to more than one claimant per victim;

(B) unless the person ordered to pay restitution has not paid the full amount of restitution owed to the victim before the application for restitution assistance from the fund is due;

(D) to a claimant who has not exhausted his or her appeal rights.

(d) Denial of assistance. The Commissioner shall not award restitution assistance if the victim:

(1) sustained the monetary injury as a result of:

(A) participating or assisting in the securities violation; or

(B) attempting to commit or committing the securities violation; or

(2) profited or would have profited from the securities violation.

(e) Application for restitution assistance and maximum amount of restitution assistance award.

(1) The Commissioner may adopt procedures and forms for application for restitution assistance under this section.

(2) An application must be received by the Commissioner within two years after the deadline for payment of restitution established in the final order.

(3) Except as provided in subdivision (4) of this subsection, the maximum award from the Fund for each claimant shall be the lesser of $25,000.00 or 25 percent of the amount of unpaid restitution awarded in a final order.

(4) If the claimant is a vulnerable person, the maximum award from the Fund shall be the lesser of $50,000.00 or 50 percent of the amount of unpaid restitution awarded in the final order.

(f) Vermont Financial Services Education and Victim Restitution Special Fund. The Vermont Financial Services Education and Victim Restitution Special Fund, pursuant to 32 V.S.A. chapter 7, subchapter 5, is created to provide funds for the purposes specified in this section, in subsection 5601(d) of this title, and in section 5617 of this title. All monies received by the State for use in financial services education initiatives pursuant to subsection 5601(d) of this title, in providing uncompensated victims restitution pursuant to this section, or in providing whistleblower awards pursuant to section 5617 of this title shall be deposited into the Fund. The Commissioner may direct a party to deposit a sum not to exceed 15 percent of the total settlement amount into the Fund in conjunction with settling an enforcement matter within the Department’s jurisdiction, as described in 8 V.S.A. § 11(a). Interest earned on the Fund shall be retained in the Fund.

(g) Award not subject to execution, attachment, or garnishment. An award made by the Commissioner under this section is not subject to execution, attachment, garnishment, or other process.

(h) State’s liability for award. The Commissioner shall have the discretion to suspend applications and awards based on the solvency of the Fund. The State shall not be liable for any determination made under this section.

(i) Subrogation of rights of State.

(1) The State is subrogated to the rights of the person awarded restitution under this chapter to the extent of the award.

(2) The subrogation rights are against the person who committed the securities violation or a person liable for the pecuniary loss.

(j) Rulemaking authority. The Commissioner may adopt rules to implement this section.

(Added 2019, No. 57, § 17a; amended 2021, No. 139 (Adj. Sess.), § 21, eff. May 27, 2022; 2023, No. 110 (Adj. Sess.), § 20, eff. July 1, 2024.)

§ 5617 Vermont Whistleblower Award and Protection Act

(a) Purpose. The purpose of this section is to provide:

(1) protection from retaliation for whistleblowers and internal reporters who comply with the requirements in this section; and

(2) monetary awards to whistleblowers who voluntarily provide original information that leads to the successful enforcement of an administrative or judicial action under chapter 150 of this title.

(b) Definitions. As used in this section,

(1) “Monetary sanction” means any monies, including penalties, disgorgement, and interest ordered to be paid as a result of an administrative or judicial action.

(2) “Original information” means information that is:

(A) derived from the independent knowledge or analysis of a whistleblower;

(B) not already known to the Commissioner from any other source, unless the whistleblower is the original source of the information;

(C) not exclusively derived from an allegation made in an administrative or judicial hearing; in a governmental report, hearing, audit, or investigation; or from the news media, unless the whistleblower is the source of the information; and

(D) provided to the Commissioner for the first time after the date of the enactment of this section.

(3) “Whistleblower” means an individual who, alone or jointly with others, provides the State or other law enforcement agency with information pursuant to the provisions set forth in this section, and the information relates to a possible violation of state or federal securities laws, including any rules or regulations adopted or promulgated under such laws, that has occurred, is ongoing, or is about to occur.

(c) Authority to make a whistleblower award. Subject to the provisions of this section, the Commissioner may award an amount to one or more whistleblowers who voluntarily provide, in writing, in the form and manner required by the Commissioner, original information that leads to the successful enforcement of an administrative or judicial action under chapter 150 of this title.

(d) Anonymous whistleblower complaints. Any individual who anonymously makes a claim for a whistleblower award shall be represented by counsel if the individual anonymously submits the information upon which the claim is based. Prior to the payment of an award, a previously anonymous whistleblower shall disclose the whistleblower’s identity and provide such other information as the Commissioner may require, directly or through counsel for the whistleblower. Failure to provide such information shall be a basis to deny compensation under this section.

(e) Amount of a whistleblower award. If the Commissioner determines to make one or more awards under this section, the aggregate amount of awards that may be awarded in connection with an administrative or judicial action may not be less than 10 percent nor more than 30 percent of the monetary sanctions imposed and collected in the related administrative or judicial action.

(f) Discretion to determine the amount of a whistleblower award. The determination of the amount of an award made under this section shall be in the discretion of the Commissioner consistent with subsections (e) and (h) of this section.

(g) Source of payment of whistleblower award. Any whistleblower awards paid under this section shall be paid from the fund established in section 5616 of this title.

(h) Factors used to determine the amount of a whistleblower award. In determining the amount of an award under this section, the Commissioner shall consider:

(1) the significance of the original information provided by the whistleblower to the success of the administrative or judicial action;

(2) the degree of assistance provided by the whistleblower in connection with the administrative or judicial action;

(3) the programmatic interest of the Commissioner in deterring violations of the securities laws by making awards to whistleblowers who provide original information that leads to the successful enforcement of such laws; and

(4) any other factors the Commissioner considers relevant.

(i) Disqualification from award. The Commissioner shall not provide an award to a whistleblower under this section if the whistleblower:

(1) is convicted of a crime in connection with the administrative or judicial action for which the whistleblower otherwise could receive an award;

(2) acquires the original information through the performance of an audit of financial statements required under the securities laws and for whom providing the original information violates 15 U.S.C. § 78j-1;

(3) fails to timely submit information to the Commissioner in such form as the Commissioner may prescribe;

(4) knowingly or recklessly makes a false, fictitious, or fraudulent statement or representation as part of, or in connection with, the original information provided or the administrative or judicial proceeding for which the original information was provided;

(5) in the whistleblower’s submission, its other dealings with the Commissioner, or in its dealings with another authority in connection with a possible violation or related action, knowingly or recklessly makes any false, fictitious, or fraudulent statement or representation or uses or provides any false writing or document knowing that or having a reckless disregard as to whether it contains any false, fictitious, or fraudulent statement or entry;

(6) has a legal duty to report the original information to the Commissioner;

(7) is, or was at the time the whistleblower acquired the original information submitted to the Commissioner, a member, officer, or employee of the Department of Financial Regulation, the Securities and Exchange Commission, any other state securities regulatory authority, a self-regulatory organization, the Public Company Accounting Oversight Board, or any law enforcement organization;

(8) is, or was at the time the whistleblower acquired the original information submitted to the Commissioner, a member, officer, or employee of a foreign government, any political subdivision, department, agency, or instrumentality of a foreign government, or any other foreign financial regulatory authority as that term is defined in 15 U.S.C. § 78c(a)(52);

(9) is the spouse, parent, child, or sibling of, or resides in the same household as, the Commissioner or an employee of the Department of Financial Regulation; or

(10) directly or indirectly acquires the original information provided to the Commissioner from a person:

(A) who is subject to subdivision (i)(2) of this section, unless the information is not excluded from that person’s use, or provides the Commissioner with information about possible violations involving that person;

(B) who is a person described in subdivision (i)(7), (8), or (9) of this section; or

(j) Protection of whistleblowers and internal reporters.

(1) No employer may terminate, discharge, demote, suspend, threaten, harass, directly or indirectly, or in any other manner retaliate against, an individual because of any lawful act done by the individual:

(A) in providing information to the State or other law enforcement agency concerning a possible violation of state or federal securities laws, including any rules or regulations adopted or promulgated under such laws, that has occurred, is ongoing, or is about to occur;

(B) in initiating, testifying in, or assisting in any investigation or administrative or judicial action of the Commissioner or other law enforcement agency based upon or related to such information;

(C) in making disclosures that are required or protected under the Sarbanes-Oxley Act of 2002 (15 U.S.C. § 7201 et seq.), the Securities Act of 1933 (15 U.S.C. § 77a et seq.), the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.), 18 U.S.C. § 1513(e), any other law, rule, or regulation subject to the jurisdiction of the Securities and Exchange Commission, or chapter 150 of this title or a rule adopted under chapter 150 of this title; or

(D) in making disclosures to a person with supervisory authority over the employee or to such other person working for the employer who has the authority to investigate, discover, or terminate misconduct regarding matters subject to the jurisdiction of the Commissioner or the Securities and Exchange Commission.

(2) Notwithstanding subdivision (j)(1) of this section, an individual is not protected under this section if:

(A) the individual knowingly or recklessly makes a false, fictitious, or fraudulent statement or representation as part of, or in connection with, the original information provided or the administrative or judicial proceeding for which the original information was provided; or

(B) the individual, in its dealings with its supervisor, the State, law enforcement, or any other authority in connection with a possible violation or related action, knowingly or recklessly makes any false, fictitious, or fraudulent statement or representation or uses or provides any false writing or document knowing that or having a reckless disregard as to whether it contains any false, fictitious, or fraudulent statement or entry.

(3) An individual who alleges any act of retaliation in violation of subdivision (j)(1) of this section may bring an action for the relief provided in subdivision (j)(6) of this section in the court of original jurisdiction for the county or state where the alleged violation occurs, the individual resides, or the person against whom the action is filed resides or has a principal place of business.

(4) A subpoena requiring the attendance of a witness at a trial or hearing conducted under subdivision (j)(3) of this section may be served at any place in the United States.

(5) An action under subdivision (j)(3) of this section may not be brought more than the latest of:

(A) six years after the date on which the violation of subdivision (j)(1) of this section occurred;

(B) three years after the date when facts material to the right of action are known or reasonably should have been known by the employee alleging a violation of subdivision (j)(1) of this section;

(6) A court may award as relief for an individual prevailing in an action brought under this subsection:

(A) reinstatement with the same compensation, fringe benefits, and seniority status that the individual would have had, but for the retaliation;

(B) two times the amount of back pay otherwise owed to the individual, with interest;

(D) actual damages;

(E) an injunction to restrain a violation; or

(F) any combination of these remedies.

(7) Information that could reasonably be expected to reveal the identity of a whistleblower is exempt from public disclosure under 1 V.S.A. § 316. This subsection does not limit the ability of any person to present evidence to a grand jury or to share evidence with potential witnesses or defendants in the course of an ongoing criminal investigation.

(8) No person may take any action to impede an individual from communicating directly with the Commissioner or the Commissioner’s staff about a possible securities law violation, including enforcing, or threatening to enforce, a confidentiality agreement with respect to such communications, except with respect to:

(A) agreements concerning communications covered by the attorney-client privilege, unless disclosure of that information would otherwise be permitted by an attorney under applicable state attorney conduct rules or otherwise; and

(B) information obtained in connection with legal representation of a client on whose behalf an individual or the individual’s employer or firm are providing services, and the individual is seeking to use the information to make a whistleblower submission for the individual’s own benefit, unless disclosure would otherwise be permitted by an attorney pursuant to applicable state attorney conduct rules or otherwise.

(9) The rights and remedies provided for in this section may not be waived by any agreement, policy form, or condition of employment, including by a predispute arbitration agreement.

(10) Nothing in this section shall be deemed to diminish the rights, privileges, or remedies of any individual under any federal or state law, or under any collective bargaining agreement.

(k) The Commissioner may adopt such rules as may be necessary or appropriate to implement the provisions of this section consistent with its purpose.

(Added 2021, No. 139 (Adj. Sess.), § 22, eff. May 27, 2022.)

Chapter 151 Vermont Financial Literacy Commission

§§ 6001-6004 Repealed

[Repealed]

2015, No. 55, § 3A.

Chapter 152 Model State Consumer Justice Enforcement Act; Standard-Form Contracts

§ 6055 Unconscionable terms in standard-form contracts prohibited

(a) Unconscionable terms. There is a rebuttable presumption that the following contractual terms are substantively unconscionable when included in a standard-form contract to which only one of the parties to the contract is an individual and that individual does not draft or have a meaningful opportunity to negotiate the contract:

(1) A requirement that resolution of legal claims takes place in an inconvenient venue. As used in this subdivision, “inconvenient venue” for State law claims means a place other than the state in which the individual resides or the contract was consummated, and for federal law claims means a place other than the federal judicial district where the individual resides or the contract was consummated. Notwithstanding this subdivision, a standard-form contract may include a term requiring that resolution of legal claims takes place in a State or federal court in Vermont.

(2) A waiver of the individual’s right to a jury trial or to bring a class action.

(3) A waiver of the individual’s right to seek punitive damages as provided by law.

(4) Pursuant to 12 V.S.A. § 465, a provision that limits the time in which an action may be brought under the contract or that waives the statute of limitations.

(5) A requirement that the individual pay fees and costs to bring a legal claim substantially in excess of the fees and costs that this State’s courts require to bring such a State law claim or that federal courts require to bring such a federal law claim.

(b) Relation to common law and the Uniform Commercial Code. In determining whether the terms described in subsection (a) of this section are unenforceable, a court shall consider the principles that normally guide courts in this State in determining whether unconscionable terms are enforceable. Additionally, the common law and Uniform Commercial Code shall guide courts in determining the enforceability of unfair terms not specifically identified in subsection (a) of this section.

(1) If a court finds that a standard-form contract contains an illegal or unconscionable term, the court shall:

(A) refuse to enforce the entire contract or the specific part, clause, or provision containing the illegal or unconscionable term; or

(B) so limit the application of the illegal or unconscionable term or the clause containing such term as to avoid any illegal or unconscionable result.

(2) In performing its analysis under this subsection, the court may consider the actual purposes of the contracting parties and whether severing the term would create an incentive for contract drafters to include similar illegal or unconscionable terms.

(d) Unfair and deceptive act and practice.

(1) In an underlying legal dispute between the drafting and nondrafting parties in which the drafting party seeks to enforce one or more terms identified in subsection (a) of this section, and upon a finding that such terms are actually unconscionable, the court may also find that the drafting party has thereby committed an unfair and deceptive practice in violation of section 2453 of this title and may order up to $1,000.00 in statutory damages per violation and an award of reasonable costs and attorney’s fees.

(2) Each term found to be unconscionable pursuant to subsection (a) of this section shall constitute a separate violation of this section.

(e) Limitation on applicability. This section shall not apply to the following contracts:

(1) A contract to which one party is:

(A) regulated by the Vermont Department of Financial Regulation; or

(B) a financial institution as defined by 8 V.S.A. § 11101(32) or a credit union as defined by 8 V.S.A. § 30101(5).

(2) A contract for the nondrafting party’s enrollment or participation in a recreational activity, sport, or competition.

(3) A motor vehicle retail installment contract subject to 9 V.S.A. chapter 59.

(Added 2019, No. 74, § 1, eff. Oct. 1, 2020.)