1. Becoming a Candidate: According to 17 V.S.A. § 2801 a person becomes a "Candidate"
   by taking an "affirmative action to become a candidate for state, county, local or legislative office
   in a primary, special, general or local election [by]

• accepting contributions or making expenditures totaling $500.00 or more; or
• filing the requisite petition for nomination . . . or being nominated by primary or caucus; or
• announcing that [he or she]seeks an elected position as a state, county or local officer or a
  position as representative or senator in the general assembly."

2. Candidate’s Obligations:

• Treasurer Designation Form: Once a candidate has made expenditures or has received
  contributions of $500.00 or more the candidate must file with the Secretary of State’s office a
  treasurer’s designation form. This form identifies the treasurer who is responsible for maintaining the campaign's checking account, and names the bank that will hold the account. Thereafter, all
  expenditures must be paid by check from a single checking account in a single bank named
  in the treasurer designation. 17 V.S.A. § 2802.

• Recordkeeping: All candidates must maintain records of campaign contributions and
  expenditures, loans and debts, including information about whether the source of the
  contribution is a Vermont resident or a resident of another state.

• Governor: A candidate for governor may spend no more than $300,000.00 in any
  two-year general election cycle.
• Lieutenant Governor: A candidate for lieutenant governor may spend no more than
  $100,000.00 in any two-year general election cycle.
• Other statewide office: A candidate for secretary of state, state treasurer, auditor of accounts or attorney general may spend no more than $45,000.00 in any two-year general election cycle.
• Senate and county office: A candidate for state senator or county office may spend no more than $4,000.00 plus, in the case of state senator, an additional $2,500.00 for each additional seat in
  the senate district, in any two-year general election cycle.
• State Representative: A candidate for state representative in a single-member district may spend no more than $2,000.00, and in a two-member district to no more than $3,000.00, in any two-year general election cycle.
• Local Office: There are no spending limits for candidates for local office.
• Federal Office: Federal law preempts state law with respect to expenditure limitations and campaign finance limits for candidates for federal office. Vermont’s new campaign finance law urges (but does not require) candidates for the United States House of Representatives and Senate to observe the
  contribution and expenditure limitations that apply to candidates for the office of governor.

• Incumbents: Incumbent Candidates for statewide office may spend only 85 percent of the amount
  allowed for that office. Incumbent candidates for the general assembly may spend only
  90 percent of the amount allowed for that office.

• "Two-year general election cycle" means the 24-month period that begins the day
  after a general election.

4.  Fundraising Basics: 17 V.S.A. § 2805 sets out the general rules about raising money.

• Contribution limits: A candidate may not accept more than the following contributions from a single source, political committee or political party in any two-year general election cycle:

State Representative: $200.00
State Senator or county office: $300.00
Statewide Office: $400.00

• 75% from in-state. A candidate may not accept, in any two-year general election cycle, more than 25 percent of total contributions from contributors who are not residents of the state of Vermont or from political committees or parties not organized in the state of Vermont.

• Over $50.00 by check. A candidate shall not accept a contribution in excess of $50.00 unless made by check.

• Only direct contributions. A candidate may accept a contribution only from the contributor. A candidate may not accept a contribution that was transferred to the contributor by another person for the purpose of circumventing the contribution limits.

• Unlimited contributions from family. A candidate or his or her immediate family may contribute an unlimited amount to his or her own campaign. For purposes of this subsection, "immediate family" means individuals related to the candidate in the first, second or third degree of consanguinity.

• Legislators may not solicit lobbyists during the session. A legislator, until final adjournment of the legislature, may not solicit political campaign contributions from a registered lobbyist or registered employer. 2 V.S.A. § 266.

• For purposes of raising and spending campaign funds, the term "candidate" includes the
  candidate's political committee.

• Single Source is defined as an "individual, partnership, corporation, association, labor organization
  or any other organization or group of persons which is not a political committee or political party."

2. Reporting (17 V.S.A § 2811):

• Candidates must file if they have spent or raised $500. Every candidate for the general assembly who has made expenditures or received contributions of $500.00 or more must file with the secretary of state campaign finance reports 40 days before the primary election and on the 25th of each month thereafter and continuing to the general election.

• A final report must be filed by 40 days following the general election. At any time, but not later than 40 days following the general election, each candidate for the general assembly who has made expenditures or received contributions of $500.00 or more must file with the secretary of state a "final report" which lists a complete accounting of all contributions and expenditures, disposition of surplus, and which constitutes the termination of his or her campaign activities.

• Candidates must file finance report in odd-numbered years. In odd-numbered years campaign finance reports must be filed on July 15.

• A candidate for the general assembly required to file campaign finance reports under this
  section must also file such reports with the clerk of the candidate's house or senate district.

• Candidates who fail to file a campaign finance report will be presumed not to have accepted
  contributions or made expenditures of $500.00 or more. 17 V.S.A. § 2823.

6. Local and County Office Candidate Reporting. (17 V.S.A. § 2821)

• Candidates for county office who have spent or accepted contributions of $500.00 or more must file campaign finance reports with the officer with whom his or her nomination papers are filed as follows:

(1) 10 days before the primary election;

(2) 10 days before the general election;

(3) A "final report" must be filed within 40 days after the general election which lists a complete accounting of all contributions and expenditures, and disposition of surplus, and which will constitute the termination of his or her campaign activities.

(4) On the 15th day of July and annually thereafter or until all contributions and expenditures have been accounted for and any indebtedness and surplus have been eliminated.

• The officer with whom the reports are filed must send copies to the secretary of state within five days of receipt.

• Each candidate for local office who spends or accepts contributions of $500.00 or more must file campaign finance reports with the officer with whom his or her nomination papers are filed. These reports are due ten days before and ten days after the local election. (17 V.S.A. § 2822)

7. Additional Reporting Requirements for Certain Mass Media Activities: Under
   17 V.S.A.§ 2883, in addition to the usual reporting requirements, a person who spends a total of $500.00
   or more for mass media activities within 30 days of a primary or general election must report these
   expenditures to the secretary of state, and to the candidate whose name or likeness is included in the
   activity, within 24 hours of making the expenditure.

• In addition to the usual information required in a report, the report must identify the person who made the expenditure with the name of the candidate involved in the activity.

• "Mass media activities" includes television commercials, radio commercials, mass mailings, literature drops and central telephone banks which include the name or likeness of a candidate for office.

• This special reporting requirement applies whether or not the expenditure was made by a candidate for his or her own campaign, or by a third party.

8. Existing Accounts: Candidates who choose to open a new campaign account for public office may
   close out their former campaign by filing a final report with the secretary of state converting all debts and assets to the new campaign. This final report must disclose all contributions and expenditures and the disposition of all debts and assets attributable to the former campaign as of the date of the filing of the final report. 17 V.S.A. § 2807.

9. Contribution Defined (17 V.S.A. § 2801 (2)):

• Payment, gift or loan to influence an election: "Contribution" means a payment, distribution, advance, deposit, loan or gift of money or anything of value, paid or promised to be paid to a person for the purpose of influencing an election, advocating a position on a public question, or supporting or opposing one or more candidates in any election . . . "

• Volunteer service not included: Contribution does not include "services provided without compensation by individuals volunteering their time on behalf of a candidate, political committee or political party.

• Loan from a lending institution not included: For the purpose of the campaign finance law, "contribution" does not include "a personal loan from a lending institution."

10. In-kind Contributions:

• Defined: In-kind contributions are contributions for the purpose of Vermont’s campaign finance law since they are gifts of "anything of value" given to a person "for the purpose of influencing an election . . ."

• Limits apply. In-kind contributions (other than for personal services) are subject to the same contribution limits and reporting requirements as cash contributions.

• Check requirement will not apply. The requirement that contributions over $50 be made by check will not apply to in-kind contributions.

• In-kind contributions must be reported. The campaign finance report requires the candidate to describe the in-kind contribution (i.e.tee shirts, food for event, car rental, etc. )

• In-kind contribution must be reasonably valued. The donor must set a reasonable value (usually fair market value or cost to the donor) for the in-kind contribution for reporting purposes and for determining compliance with contribution limits.

• Joint In-kind contributions are permissible. More than one donor can jointly make an in-kind contribution (ie. husband and wife jointly donate a computer for a candidate’s campaign office.)

11. Expenditure Defined: According to 17 V.S.A. § 2801 (3), "expenditure" means a "payment, disbursement, distribution, advance, deposit, loan or gift of money or anything of value, paid or promised to be paid, for the
    purpose of influencing an election, advocating a position on a public question, or supporting or opposing one or more candidates."

12. Related Expenditures: According to 17 V.S.A § 2809, a "related campaign expenditure made on the candidate's behalf" means any expenditure intended to promote the election of a specific candidate or group of candidates, or the defeat of an opposing candidate or group of candidates, if intentionally facilitated by,
    solicited by or approved by the candidate or the candidate's political committee.

• Related expenditures are contributions. Related campaign expenditures made on a candidate's behalf will be considered a contribution to the candidate on whose behalf it was made.

• Related expenditures over $50 are candidate’s campaign expenses. Related campaign expenditures made on a candidate's behalf will be considered expenditures by the candidate on whose behalf they were made unless the expenditure did not exceed $50.00.

• Political party or political committee expenditures that benefit 7 or more candidates may not be related expenditures: An expenditure made by a political party or by a political committee that recruits or endorses candidates, that substantially benefits more than six candidates and facilitates party or political committee functions, voter turnout, platform promotion or organizational capacity shall not be presumed to be a related expenditure made on a candidate's behalf. However, an expenditure made by a political party or by a political committee that recruits or endorses candidates, that primarily benefits six or fewer candidates who are associated with the political party or political committee making the expenditure, is presumed to be a related expenditure made on behalf of those candidates.

• Meet the candidate event exception: Expenditures will not be treated as a "related campaign expenditure made on the candidate's behalf" if all of the following apply:

(1) The expenditures were made in connection with a campaign event whose purpose was to provide a group of voters with the opportunity to meet the candidate personally.

(2) The expenditures were made only for refreshments and related supplies that were consumed at that event.

(3) The total expenditure amount for the event was less than $100.00.

• The new campaign finance law allows a candidate to seek a determination that an expenditure is a related expenditure made on behalf of an opposing candidate by filing a petition with the superior court
  of the county in which either candidate resides. The law requires the court to schedule a hearing
  within 24 hours and to give expedited consideration to the matter.

13. Identifying Political Advertisements. 17 V.S.A. § 2882 requires all political advertisements to
    contain the name and address of the person who paid for the advertisement.

• "Political advertisement" means any communication, including communications published in any newspaper or periodical or broadcast on radio, television or over any public address system, placed on any billboards, outdoor facilities, buttons or printed material attached to motor vehicles, window displays, posters, cards, pamphlets, leaflets, flyers or other circulars, or in any direct mailing, which expressly or implicitly advocates the success or defeat of a candidate. Note that this provision does not apply to issue advertisements.

• The advertisement must clearly designate the name of the candidate, party or political committee by or on whose behalf the same is published or broadcast.

• In the case of printed or written matter, the name and address must be printed or written large enough to be clearly legible. This information is not required to be clearly legible on buttons or written or printed matter attached to or displayed on a motor vehicle (i.e. bumper stickers, car top signs, etc.)

14. On Line and Public Distribution of Campaign Information. (17 V.S.A. § 2810) The secretary of state’s office is developing an on-line campaign database. The database will contain information on candidates for statewide and county office and for the general assembly. The information will include: information contained in campaign finance reports filed by the candidate, including mass media reports and information about public financing. The database will also include campaign finance reports filed by candidates for federal office. Candidates will also be able to submit brief biographical sketches and short position statements to be included in the database.

The secretary of state will also distribute paper copies of brief candidate biographical information, and photo and short position papers for candidates for statewide and federal office.

• Candidates for the general election will be notified of the maximum length and format of biographical sketches and position papers to be included for Internet and/or paper copy distribution.

15. Penalties. The penalties for violating the new campaign finance law are set out in 17 V.S.A. § 2806. This provision provides that:

• A person who knowingly and intentionally violates a provision of sections 2811 through 2832 of Title 17 (related to filing campaign finance reports) will be fined not more than $1,000.00 or imprisoned not more than six months or both.

• A person who violates any provision of the campaign finance law will be subject to a civil penalty of up to $10,000.00 for each violation and will refund the unspent balance of Vermont campaign finance grants received, if any, calculated as of the date of the violation.

• In addition to the other penalties, a state's attorney or the attorney general may institute any appropriate action, injunction, or other proceeding to prevent, restrain, correct or abate any violation of this chapter.
  

Vermont’s new campaigns finance law permits candidates for governor and lieutenant governor to seek public financing for their campaigns. In order to qualify for public funding the candidate must meet certain qualifications as described below:

1. Eligibility. In order to receive public funding:

• No Early Raising or Spending Money. Before February 15^th of the general election year, a candidate for governor or lieutenant governor must not accept contributions totaling $500.00 or more, or spend a total of $500.00 or more. (17 V.S.A. § 2853).

• No Fundraising Except Qualifying Contributions. A candidate who wishes to receive public funding may not solicit, accept or expend any contributions except qualifying contributions, Vermont campaign finance grants and contributions which may be necessary to offset insufficient funds in the Vermont campaign fund.

• Qualifying Contributions. The candidate must collect qualifying contributions during the Vermont campaign finance qualification period in the following amount and number:

(1) For governor, a total amount of no less than $35,000.00 collected from no fewer than 1,500 qualified individual contributors making a contribution of no more than $50.00 each.

(2) For lieutenant governor, a total amount of no less than $17,500.00 collected from no fewer than 750 qualified individual contributors making a contribution of no more than $50.00 each.

• Campaign finance affidavit. A candidate who intends to seek Vermont campaign finance grants from the Vermont campaign fund must file a Vermont campaign finance affidavit on the date on or before which primary petitions must be filed, whether the candidate seeks to enter a party primary or is an independent or minor party candidate.

2. Special Rules Related to Qualifying Contributions:

• No candidate may accept more than one qualifying contribution from the same contributor in any Vermont campaign finance qualification period.

• No contributor may make more than one qualifying contribution to the same candidate in any Vermont campaign finance qualification period.

• No more than 25 percent of the total number of qualified individual contributors may be residents of the same county.

• Each qualifying contribution must indicate the name and town of residence of the contributor, the date received, and be acknowledged by the signature of the contributor.

• A candidate may retain and expend qualifying contributions. A candidate may expend the qualifying contributions for the purpose of obtaining additional qualifying contributions and may expend the remaining qualifying contributions during the primary and general election periods. Amounts expended to obtain qualifying contributions are expenditures of the candidate and will count toward the candidate’s spending limits. (17 V.S.A. § 2854)

• For the purpose of this section, a qualified individual contributor means an individual who is registered to vote in Vermont.

3. Rules Relating To Depositing Qualifying Contributions and Campaign Finance Grants. A candidate who accepts Vermont campaign finance grants must:

• Deposit all qualifying contributions, Vermont campaign finance grants and any other permissible contributions in a federally insured non-interest-bearing checking account.

• Not later than 40 days after the general election, deposit in the Vermont campaign fund, after all permissible expenditures have been paid, the balance of any amounts remaining in the account established above.

4. Vermont Campaign Finance Grants. (17 V.S.A. § 2855)

• To the extent funds are available, the secretary of state shall make grants from the Vermont campaign fund in separate grants for the primary and general election periods to candidates who have qualified for Vermont campaign finance grants under this subchapter.

• Whether a candidate has entered a primary or is an independent [or minor party] candidate, Vermont campaign finance grants shall be in the following amounts:

Governor:
$75,000.00 in a primary election period and
$225,000.00 in a general election period

Lieutenant Governor:
$25,000.00 in a primary election period
$75,000.00 in a general election period

• The grant for a primary election period will be reduced by an amount equal to the candidate's qualifying contributions.

• A candidate who is an incumbent of the office being sought shall be entitled to receive a grant in an amount equal to 85 percent of the amount listed in subdivision above.

• Grants awarded in a primary election period, but not spent, may be used by the candidate in the general election period.

• If the Vermont campaign fund does not have enough money in it to provide Vermont campaign finance grants to all candidates who qualify, the available funds shall be distributed proportionately among qualifying candidates. If grants are reduced because of lack of funds, a candidate may solicit and accept additional contributions equal to the amount of the difference between the amount of the Vermont campaign finance grants authorized and the amount received under this section.

• Vermont campaign finance grants for a primary election period shall be paid to qualifying candidates within the first ten business days of the primary election period. Vermont campaign finance grants for a general election period shall be paid to qualifying candidates during the first ten business days of the general election period.

5. Disqualification.

• A candidate in an uncontested general election is not qualified to receive public funding.

• A candidate who loses a primary election but who remains eligible to run for office will not be eligible for a general election period grant.

• Candidates disqualified as described above may solicit and accept contributions and make expenditures as follows: contributions shall be subject to the normal limitations and expenditures shall be limited to an amount equal to the amount of the grant for the general election for the office being pursued.

6. Definitions (17 V.S.A.§ 2851).

• "Affidavit" means the Vermont campaign finance affidavit prepared by the Secretary of State.

• "General election period" means the period beginning the day after the primary election and ending the day of the general election.

• "Primary election period" means the period beginning the day after primary petitions must be filed and ending the day of the primary election.

• "Vermont campaign finance qualification period" means the period beginning February 15 of each even-numbered year and ending on the date on which primary petitions must be filed.

• "Secretary" means the secretary of state.
  

• "Political committee" or "political action committee" means any formal or informal committee of two or more individuals, not including a political party, which receives contributions or makes expenditures of more than $500.00 in any one calendar year for the purpose of supporting or opposing one or more candidates, influencing an election or advocating a position on a public question, in any election or affecting the outcome of an election.

• "Political party" means a political party organized under chapter 45 title 17 of the Vermont Statutes Annotated, or any committee established, financed, maintained or controlled by the party, including any subsidiary, branch or local unit thereof and including national or regional affiliates of the party.

2. Registration Requirements. (17 V.S.A. § 2831) Each political committee and each political party which has accepted contributions or made expenditures of $500.00 or more must register with the secretary of state stating its full name and address, the name of its treasurer, and the name of the bank in which it maintains its campaign checking account within ten days of reaching the $500.00 threshold.

3. Reporting Requirements. (17 V.S.A. § 2811). Each political committee and each political party required to register must file with the secretary of state campaign finance reports:

• Pre-election. 40 days before the primary election and on the 25th of each month thereafter and continuing to the general election.

• Post-election. Not later than 40 days following the general election.

• Final report. At any time, a political committee or a political party may file a "final report" which lists a complete accounting of all contributions and expenditures and which shall constitute the termination of its campaign activities.

• July report. In odd-numbered years campaign finance reports shall be filed on July 15.

• Local elections. A political committee or political party which has accepted contributions or made expenditures of $500.00, or more, for the purpose of influencing a local election or supporting or opposing one or more candidates in a local election must, in addition to other filings, file campaign finance reports ten days before and ten days after the local election with the clerk of the municipality in which the election is held and with the secretary of state.

• A political committee or political party may satisfy the filing requirements by filing with the secretary of state a copy of that portion of the campaign finance reports applicable to candidates seeking election in this state which the committee or party has filed with the Federal Election Commission and by designating an in-state agent in the report. (17 V.S.A. § 2832)

4. Contribution Limits.

• Receipt. A political committee, other than a political committee of a candidate, or a political party shall not accept contributions totaling more than $2,000.00 from a single source, political committee or political party in any two-year general election cycle.

• Donate. A single source, political committee or political party may not contribute more to a candidate, political committee or political party than the candidate, political committee or political party is permitted to accept under Vermont law.

• 75% In-State. A political party or political committee may not accept, in any two-year general election cycle, more than 25 percent of total contributions from contributors who are not residents of the state of Vermont or from political committees or parties not organized in the state of Vermont.

• No indirect contributions. A political party or political committee may not accept a contribution which is not directly from the contributor, but was transferred to the contributor by another person for the purpose of transferring the same or otherwise circumventing the provisions of Vermont law.

• The limitations on contributions will not apply to contributions made for the purpose of advocating a position on a public question, including a constitutional amendment.