Department of Financial Regulation Administrative Procedures Rule Proposed Filing

Administrative Procedures
PROPOSED RULE # .
RECEIVED BY: ________
 Coversheet
 Adopting Page
 Economic Impact Analysis
 Environmental Impact Analysis
 Strategy for Maximizing Public Input
 Scientific Information Statement (if applicable)  Incorporated by Reference Statement (if applicable)  Clean text of the rule (Amended text without annotation)  Annotated text (Clearly marking changes from previous rule)  ICAR Filing Confirmed Revised January 10, 2023 page 1 Proposed Filing - Coversheet Instructions:
In accordance with Title 3 Chapter 25 of the Vermont Statutes Annotated and the “Rule on Rulemaking” (CVR 04-000-001) adopted by the Office of the Secretary of State, this filing will be considered complete upon filing and acceptance of these forms and enclosures with the Office of the Secretary of State, and the Legislative Committee on Administrative Rules. All forms shall be submitted to the Office of the Secretary of State, no later than 3:30 pm on the last scheduled day of the work week. The data provided in text areas of Proposed Filing Coversheet will be used to generate a notice of rulemaking in the portal of “Proposed Rule Postings” online, and the newspapers of record. Publication of notices will be charged back to the promulgating agency. PLEASE REMOVE ANY COVERSHEET OR FORM NOT REQUIRED WITH THE CURRENT FILING BEFORE DELIVERY! Certification Statement: As the adopting Authority of this rule (see 3 V.S.A. § 801 (b) (11) for a definition), I approve the contents of this filing entitled:
Department of Financial Regulation Administrative Procedures Rule /s/ Kaj Samsom , on 9/25/2026 (signature) (date) Printed Name and Title:
Kaj Samsom, Commissioner of Financial Regulation

Administrative Procedures
Proposed Filing - Coversheet
Revised January 10, 2023 page 3

TITLE OF RULE FILING:
Department of Financial Regulation Administrative Procedures Rule
ADOPTING AGENCY:
Department of Financial Regulation
PRIMARY CONTACT PERSON:
(A PERSON WHO IS ABLE TO ANSWER QUESTIONS ABOUT THE CONTENT OF THE RULE). Name: Gavin Boyles, Assistant General Counsel Agency: Department of Financial Regulation Mailing Address: 89 Main St., Montpelier VT 05609 Telephone: (802) 522-2685 Fax:
E-Mail: gavin.boyles@vermont.gov
Web URL (WHERE THE RULE WILL BE POSTED - Use CTRL + SHIFT + V to paste a visible hyperlink):
https://dfr.vermont.gov/about-us/legal-generalcounsel/proposed-rules-and-public-comment
SECONDARY CONTACT PERSON:
(A SPECIFIC PERSON FROM WHOM COPIES OF FILINGS MAY BE REQUESTED OR WHO MAY ANSWER QUESTIONS ABOUT FORMS SUBMITTED FOR FILING IF DIFFERENT FROM THE PRIMARY CONTACT PERSON). Name: Sheila Grace, General Counsel Agency: Department of Financial Regulation Mailing Address: 89 Main St., Montpelier VT 05609 Telephone: (802) 595-6052 Fax:
E-Mail: sheila.grace@vermont.gov
RECORDS EXEMPTION INCLUDED WITHIN RULE:
(DOES THE RULE CONTAIN ANY PROVISION DESIGNATING INFORMATION AS CONFIDENTIAL; LIMITING ITS PUBLIC RELEASE; OR OTHERWISE, EXEMPTING IT FROM INSPECTION AND COPYING?) No IF YES, CITE THE STATUTORY AUTHORITY FOR THE EXEMPTION:
PLEASE SUMMARIZE THE REASON FOR THE EXEMPTION:
LEGAL AUTHORITY / ENABLING LEGISLATION:
(THE SPECIFIC STATUTORY OR LEGAL CITATION FROM SESSION LAW INDICATING WHO THE ADOPTING ENTITY IS AND THUS WHO THE SIGNATORY SHOULD BE. THIS SHOULD BE A SPECIFIC CITATION NOT A CHAPTER CITATION). 8 V.S.A. § 15(a); 9 V.S.A. § 5605

Administrative Procedures
Proposed Filing - Coversheet
Revised January 10, 2023 page 4
7. EXPLANATION OF HOW THE RULE IS WITHIN THE AUTHORITY OF
THE AGENCY:
8 V.S.A. § 15(a) authorizes the Commissioner to adopt rules "necessary to the administration of" [Title 8]. This rule provides an updated Administrative-ProcedureAct-compliant administrative framework for conducting hearings on matters within the Commissioner's jurisdiction.
8. CONCISE SUMMARY (150 WORDS OR LESS):
The rule sets forth DFR's procedures for contested cases and other administrative matters, including APA petitions of various types. It is an update to DFR's existing APA rule, intended to bring clarity to definitions and procedures. The amended rule more clearly delineates roles and responsibilities within DFR. The amendment also modernizes filing and service requirements.
9. EXPLANATION OF WHY THE RULE IS NECESSARY:
The rule is necessary to provide notice to regulated entities and others of how hearings will be conducted in contested cases and other matters, how petitions will be received and ruled upon, and how other processes necessary to the orderly administration of matters within the Commissioner's jurisdiction will be conducted.
10. EXPLANATION OF HOW THE RULE IS NOT ARBITRARY AS DEFINED
IN 3 V.S.A. § 801(b)(13)(A):
The rule is not arbitrary because it is a rational approach to ensuring the orderly conduct of hearings and other matters including petitions that fall within the Commissioner's lawful jurisdiction. It is closely based on the Vermont APA and the analogous rules of other Vermont government entities, and is designed to ensure notice, an opportunity to be heard, and a clear decision-making and appeal process, for all affected entities and individuals.
11. LIST OF PEOPLE, ENTERPRISES AND GOVERNMENT ENTITIES
AFFECTED BY THIS RULE:
Entities regulated by the Commissioner, including Vermont-domiciled financial institutions.

Administrative Procedures
Proposed Filing - Coversheet
Revised January 10, 2023 page 5
Individuals holding licenses issued by the Commissioner, including insurance and securities professionals. Other financial services entities and individuals doing business in Vermont.
12. BRIEF SUMMARY OF ECONOMIC IMPACT (150 WORDS OR LESS):
The economic impact is expected to be de minimis. The rule imposes no fees and creates no new obligations for regulated entities or licensed individuals. There is an existing DFR procedural rule and the revisions add no substantive compliance obligations. Having a clearer procedural rule is beneficial to regulated entities and the Department.
13. A HEARING WILL BE SCHEDULED.
IF A HEARING WILL NOT BE SCHEDULED, PLEASE EXPLAIN WHY.
14. HEARING INFORMATION
(THE FIRST HEARING SHALL BE NO SOONER THAN 30 DAYS FOLLOWING THE POSTING OF NOTICES ONLINE). IF THIS FORM IS INSUFFICIENT TO LIST THE INFORMATION FOR EACH HEARING, PLEASE ATTACH A SEPARATE SHEET TO COMPLETE THE HEARING INFORMATION NEEDED FOR THE NOTICE OF RULEMAKING. Date: 11/19/2026 Time: 10:00 AM Street Address: 89 Main St., Montpelier VT Zip Code: 05609 URL for Virtual (Use CTRL + SHIFT + V to paste a visible hyperlink):
TBD
Date:
Time: AM
Street Address:
Zip Code:
URL for Virtual (Use CTRL + SHIFT + V to paste a visible hyperlink):

Administrative Procedures
Proposed Filing - Coversheet
Revised January 10, 2023 page 6
Date:
Time: AM
Street Address:
Zip Code:
URL for Virtual (Use CTRL + SHIFT + V to paste a visible hyperlink):
Date:
Time: AM
Street Address:
Zip Code:
URL for Virtual (Use CTRL + SHIFT + V to paste a visible hyperlink):
15. DEADLINE FOR COMMENT (NO EARLIER THAN 7 DAYS FOLLOWING LAST
HEARING): 12/3/2026
16. KEYWORDS (PLEASE PROVIDE AT LEAST 3 KEYWORDS OR PHRASES TO AID IN THE
SEARCHABILITY OF THE RULE NOTICE ONLINE). administrative procedures administrative hearings APA contested case financial regulation

Administrative Procedures
Adopting Page
Revised January 10, 2023 page 1
Adopting Page
Instructions:
This form must accompany each filing made during the rulemaking process:
Note: To satisfy the requirement for an annotated text, an agency must submit the entire rule in annotated form with proposed and final proposed filings. Filing an annotated paragraph or page of a larger rule is not sufficient. Annotation must clearly show the changes to the rule. When possible, the agency shall file the annotated text, using the appropriate page or pages from the Code of Vermont Rules as a basis for the annotated version. New rules need not be accompanied by an annotated text.

TITLE OF RULE FILING:
Department of Financial Regulation Administrative Procedures Rule
ADOPTING AGENCY:
Department of Financial Regulation
TYPE OF FILING (PLEASE CHOOSE THE TYPE OF FILING FROM THE DROPDOWN MENU
BASED ON THE DEFINITIONS PROVIDED BELOW):

AMENDMENT - Any change to an already existing rule,
even if it is a complete rewrite of the rule, it is considered an amendment if the rule is replaced with other text.
NEW RULE - A rule that did not previously exist even under
a different name.
REPEAL - The removal of a rule in its entirety, without
replacing it with other text.
This filing is AN AMENDMENT OF AN EXISTING RULE .

LAST ADOPTED (PLEASE PROVIDE THE SOS LOG#, TITLE AND EFFECTIVE DATE OF
THE LAST ADOPTION FOR THE EXISTING RULE):
SOS Log #: 21-031, Vermont Department of Financial Regulation Administrative Procedures Rule, Effective 01/01/2022

Administrative Procedures
Economic Impact Analysis
Revised January 10, 2023 page 1
Economic Impact Analysis
Instructions:
In completing the economic impact analysis, an agency analyzes and evaluates the anticipated costs and benefits to be expected from adoption of the rule; estimates the costs and benefits for each category of people enterprises and government entities affected by the rule; compares alternatives to adopting the rule; and explains their analysis concluding that rulemaking is the most appropriate method of achieving the regulatory purpose. If no impacts are anticipated, please specify “No impact anticipated” in the field. Rules affecting or regulating schools or school districts must include cost implications to local school districts and taxpayers in the impact statement, a clear statement of associated costs, and consideration of alternatives to the rule to reduce or ameliorate costs to local school districts while still achieving the objectives of the rule (see 3 V.S.A. § 832b for details). Rules affecting small businesses (excluding impacts incidental to the purchase and payment of goods and services by the State or an agency thereof), must include ways that a business can reduce the cost or burden of compliance or an explanation of why the agency determines that such evaluation isn’t appropriate, and an evaluation of creative, innovative or flexible methods of compliance that would not significantly impair the effectiveness of the rule or increase the risk to the health, safety, or welfare of the public or those affected by the rule. 1.TITLE OF RULE FILING:
Department of Financial Regulation Administrative Procedures Rule
2. ADOPTING AGENCY:
Department of Financial Regulation
3. CATEGORY OF AFFECTED PARTIES:
LIST CATEGORIES OF PEOPLE, ENTERPRISES, AND GOVERNMENTAL ENTITIES POTENTIALLY AFFECTED BY THE ADOPTION OF THIS RULE AND THE ESTIMATED COSTS AND BENEFITS ANTICIPATED:
Vermont-domiciled financial institutions, including banks, insurance companies, and securities companies; Non-Vermont-domiciled financial institutions that do business in Vermont;

Administrative Procedures
Economic Impact Analysis
Revised January 10, 2023 page 2
Vermont-licensed financial professionals, including those in the banking, insurance, and securities industries; Individuals who do business with the entities and individuals listed above in this section. For all entities and individuals listed above, the modified rule is anticipated to have minimal or no additional costs because the rule is an update to the procedures and process for administrative proceedings and does not impose additional substantive requirements on regulated entities or individuals. The changes to the rule may benefit regulated entities and individuals by making the administrative process and procedures more clear.
4. IMPACT ON SCHOOLS:
INDICATE ANY IMPACT THAT THE RULE WILL HAVE ON PUBLIC EDUCATION, PUBLIC SCHOOLS, LOCAL SCHOOL DISTRICTS AND/OR TAXPAYERS CLEARLY STATING ANY ASSOCIATED COSTS:
None
5. ALTERNATIVES: CONSIDERATION OF ALTERNATIVES TO THE RULE TO REDUCE OR
AMELIORATE COSTS TO LOCAL SCHOOL DISTRICTS WHILE STILL ACHIEVING THE OBJECTIVE OF THE RULE. Because the rule is not anticipated to have any impact on schools, no alternatives were considered.
6. IMPACT ON SMALL BUSINESSES:
INDICATE ANY IMPACT THAT THE RULE WILL HAVE ON SMALL BUSINESSES (EXCLUDING IMPACTS INCIDENTAL TO THE PURCHASE AND PAYMENT OF GOODS AND SERVICES BY THE STATE OR AN AGENCY THEREOF):
The Rule is intended to provide greater clarity to all regulated entities, including small businesses, of how the Department's administrative hearings will be conducted.
7. SMALL BUSINESS COMPLIANCE: EXPLAIN WAYS A BUSINESS CAN REDUCE THE
COST/BURDEN OF COMPLIANCE OR AN EXPLANATION OF WHY THE AGENCY DETERMINES THAT SUCH EVALUATION ISN’T APPROPRIATE. The Rule is not expected to have any impact on small businesses' costs of compliance.
8. COMPARISON:

Administrative Procedures
Economic Impact Analysis
Revised January 10, 2023 page 3
COMPARE THE IMPACT OF THE RULE WITH THE ECONOMIC IMPACT OF OTHER ALTERNATIVES TO THE RULE, INCLUDING NO RULE ON THE SUBJECT OR A RULE HAVING SEPARATE REQUIREMENTS FOR SMALL BUSINESS:
The Rule provides greater clarity and predictability for all entities involved in DFR hearings and other administrative procedures, as compared to the prior rule. The rule also eliminates some of the redundant paper-copy filing requirements of the prior rule and allows greater flexibility vis-à-vis remote hearings, which should have a positive economic impact on all affected entities, including small businesses.
9. SUFFICIENCY: DESCRIBE HOW THE ANALYSIS WAS CONDUCTED, IDENTIFYING
RELEVANT INTERNAL AND/OR EXTERNAL SOURCES OF INFORMATION USED.
DFR analyzed the economic impact of the modifications to the rule based on the experience of DFR and its attorneys and staff in handling administrative proceedings. As the rule and the modifications are procedural, DFR concluded that the update to the rule will have minimal or no economic impact.

Administrative Procedures
Environmental Impact Analysis
Revised January 10, 2023 page 1
Environmental Impact Analysis
Instructions:
In completing the environmental impact analysis, an agency analyzes and evaluates the anticipated environmental impacts (positive or negative) to be expected from adoption of the rule; compares alternatives to adopting the rule; explains the sufficiency of the environmental impact analysis. If no impacts are anticipated, please specify “No impact anticipated” in the field. Examples of Environmental Impacts include but are not limited to:

Impacts on the emission of greenhouse gases
Impacts on the discharge of pollutants to water
Impacts on the arability of land
Impacts on the climate
Impacts on the flow of water
Impacts on recreation
Or other environmental impacts

TITLE OF RULE FILING:
Department of Financial Regulation Administrative Procedures Rule
ADOPTING AGENCY:
Department of Financial Regulation
GREENHOUSE GAS: EXPLAIN HOW THE RULE IMPACTS THE EMISSION OF
GREENHOUSE GASES (E.G. TRANSPORTATION OF PEOPLE OR GOODS; BUILDING INFRASTRUCTURE; LAND USE AND DEVELOPMENT, WASTE GENERATION, ETC.):
No impact anticipated
WATER: EXPLAIN HOW THE RULE IMPACTS WATER (E.G. DISCHARGE / ELIMINATION OF
POLLUTION INTO VERMONT WATERS, THE FLOW OF WATER IN THE STATE, WATER QUALITY ETC.):
No impact anticipated, apart from de minimis positive effect of reduction in paper-filing requirements.
LAND: EXPLAIN HOW THE RULE IMPACTS LAND (E.G. IMPACTS ON FORESTRY,
AGRICULTURE ETC.):
No impact anticipated

Administrative Procedures
Environmental Impact Analysis
Revised January 10, 2023 page 2
6. RECREATION: EXPLAIN HOW THE RULE IMPACTS RECREATION IN THE STATE:
No impact anticipated
7. CLIMATE: EXPLAIN HOW THE RULE IMPACTS THE CLIMATE IN THE STATE:
No impact anticipated
8. OTHER: EXPLAIN HOW THE RULE IMPACT OTHER ASPECTS OF VERMONT’S
ENVIRONMENT:
No impact anticipated
9. SUFFICIENCY: DESCRIBE HOW THE ANALYSIS WAS CONDUCTED, IDENTIFYING
RELEVANT INTERNAL AND/OR EXTERNAL SOURCES OF INFORMATION USED.
Taking into account the nature of this rule (an administrative procedural rule), no environmental impact, or a minimal positive impact, is anticipated and thus only minimal analysis is necessary.

Administrative Procedures
Public Input Maximization Plan
Revised January 10, 2023 page 1
Public Input Maximization Plan
Instructions:
Agencies are encouraged to hold hearings as part of their strategy to maximize the involvement of the public in the development of rules. Please complete the form below by describing the agency’s strategy for maximizing public input (what it did do, or will do to maximize the involvement of the public). This form must accompany each filing made during the rulemaking process:

TITLE OF RULE FILING:
Department of Financial Regulation Administrative Procedures Rule
ADOPTING AGENCY:
Department of Financial Regulation
PLEASE DESCRIBE THE AGENCY’S STRATEGY TO MAXIMIZE PUBLIC
INVOLVEMENT IN THE DEVELOPMENT OF THE PROPOSED RULE, LISTING THE STEPS THAT HAVE BEEN OR WILL BE TAKEN TO COMPLY WITH THAT STRATEGY:
In addition to the APA-required notice and hearing requirements, the Department will email an update on this proposed rule as part of its monthly newsletter, which reaches approximately 800 industry partners and interested parties, who have requested to receive the Department's newsletter. In the event someone does not have internet access, the Department has designated a contact person for those purposes.
BEYOND GENERAL ADVERTISEMENTS, PLEASE LIST THE PEOPLE AND
ORGANIZATIONS THAT HAVE BEEN OR WILL BE INVOLVED IN THE DEVELOPMENT OF THE PROPOSED RULE:
The Department will post the proposed rule along with these forms on its website. The Department will hold a public hearing. The public hearing will be advertised on our website. Any comments received will be considered and incorporated, where relevant, after the comment

Public Input
Revised January 10, 2023 page 2 deadline and before the final proposed rule is submitted to the Secretary of State and LCAR.

VERMONT DEPARTMENT OF FINANCIAL REGULATION ADMINISTRATIVE PROCEDURES RULE
TABLE OF CONTENTS
1.01 Purpose and Applicability
1.02 Definitions
1.03 Rules of Construction
1.04 General Procedures for Department Administrative Proceedings
A. Docketing
B. Assignment of Hearing Officer
C. Initiation of Contested Case
D. Pleadings and Motions
E. Hearing Notice Requirements
F. Filing with the Department
G. Service Upon Parties and Other Persons
H. Notices of Appearance
I. Answer in Contested Cases
J. Defective Filings
K. Remote Hearings
L. Postponement or Continuance of Hearing
M. Ex Parte Orders
N. Sanctions
O. Ex Parte Communication
P. Applicability of Vermont Rules of Civil Procedure Q. Waiver of Rules R. Disposition by Settlement S. Default Judgment T. Evidence U. Non-Evidentiary Hearings
V. Proposed Findings of Fact and Conclusions of Law
W. Hearing Officer’s Proposal for Decision
X. Commissioner’s Order
Y. Method for Providing Parties with Orders Z. Authority of Hearing Officer AA. Disqualification of Hearing Officer BB. Voluntary Recusal
1.05 Additional Procedures for Evidentiary Hearings
A. Prehearing Conference
B. Intervention
C. Discovery

D. Subpoenas
E. Transcription
F. Conduct of Hearing
G. Witnesses
H. Submission of Evidence
I. Reopening or Rehearing
J. Waiver of Evidentiary Hearing
1.06 Appeals
1.07 Petitions for Rulemaking
1.08 Rulemaking Hearings
1.09 Petitions for Declaratory Rulings
1.10 Petition to Describe an Existing Practice
1.11 Conflict
1.12 Severability
1.13 Effective Date

1.01 Purpose and Applicability
(A) This rule establishes the procedures for the Department’s administrative proceedings as to matters within the Commissioner’s jurisdiction and for which an administrative remedy is available by law. (B) All provisions in Section 1.04 apply to contested cases. (C) All provisions in Section 1.05 apply to evidentiary hearings in contested cases. (D) The Department may apply all or some of the provisions of Sections 1.04 and 1.05 in proceedings that are not contested cases when such application would be prudent.
1.02 Definitions
“Commissioner” means the Commissioner of Financial Regulation.
“Department” means the Vermont Department of Financial Regulation. “Day” means a calendar day. “Division” means the Insurance Division, Captive Insurance Division, Banking Division, or Securities Division of the Department. “Docket Clerk” means the Department employee responsible for matters related to tracking contested cases, including, but not limited to, assigning a docket number, scheduling hearings, keeping a current service list, and maintaining the official repository for filings. “Hearing Officer” means the person designated by the Commissioner to conduct a contested case hearing and associated proceedings. “Order” means the final decision of the Commissioner on part or the whole of a matter. “Presiding Officer” means the Commissioner or, if the Commissioner has appointed one, the Hearing Officer. “Respondent” means a person against whom a contested case has been commenced.
1.03 Rules of Construction
The statutory definitions of other terms, including but not limited to “contested case,” “license,” “party,” “person,” “practice,” “procedure,” and “rule” set forth in 3 V.S.A. § 801 are hereby adopted and made a part of this rule. Singular words may be applied as if plural and plural words may be applied as if singular unless such application is contrary to applicable law.
1.04 General Procedures for Department Administrative Proceedings
(A) Docketing

Contested cases, and such other matters as the Commissioner or Docket Clerk shall designate, shall be assigned a docket number. (B) Assignment of Hearing Officer The Commissioner may assign a Hearing Officer in a contested case. (C) Initiation of Contested Case (1) Initiation by Division or External Parties (a) A contested case is initiated by filing a petition, other pleading, or motion with the Docket Clerk as provided in Section 1.04(D). (b) An application that is treated as a contested case under the Vermont Administrative Procedure Act shall be considered a pleading for the purpose of initiating a proceeding. (c) The initiating party shall include with its initial pleading the following:
(i) a notice addressing the right of any party or other person to request a hearing, if such right is afforded by law; (ii) a notice of appearance which meets the requirements of Section 1.04(F); (iii) a certificate of service or affidavit which meets the requirements of Section 1.04(E)(5); and (iv) a statement identifying by name, email address, and mailing address each party or other person entitled to notice of the filing or proceeding, including information for all attorneys representing any such person, party, or other entity, if known. (2) Service of Initial Pleading (a) Service upon a Division. Service of the initial pleading upon a Division shall be accomplished by filing the pleading with the Docket Clerk. (b) Service upon External Parties. Service of the initial pleading upon each party and other person external to the Department entitled to be served shall be accomplished by delivery in person or by sending via certified mail, return receipt requested, to the party’s or person’s last known address on file with the Department, except in cases where a different manner of service is required by law or the external party or person has authorized

service by other means.
(D) Pleadings and Motions
(1) Every pleading and motion shall describe in detail the order or relief sought and include a statement of reasons and the legal authority on which it is based. (2) Every pleading and motion shall be signed by at least one attorney or pro se representative of record in the individual name of the attorney or pro se representative. The signature of an attorney or pro se representative of record constitutes a certificate by such person that to the best of the person’s knowledge, information, and belief there are good grounds to support the motion or other pleading; all legal contentions are supported by existing law or by a nonfrivolous argument for the extension, modification, or reversal of existing law or the establishment of new law; all factual contentions have evidentiary support, or, if specifically so identified, are likely to have evidentiary support after a reasonable opportunity for further investigation or discovery; and that the motion or other pleading is not intended to delay the proceedings. (3) Motions not made during the hearing shall be submitted in writing and, if they raise a substantial issue of law, supported by a brief. The Presiding Officer may require motions made during a hearing to be subsequently submitted in writing and, if they raise a substantial issue of law, supported by a brief, within a specific time frame. (4) The Presiding Officer may decline to consider a motion not made within a reasonable time after the issue first arises. (5) Parties and other persons who have entered notices of appearance may file responses in opposition to or support of a motion within the time frame specified by the Presiding Officer. The Presiding Officer may allow the filing of a reply to a response in opposition or support upon the request of a party when the Presiding Officer determines that allowing such filing will not cause undue delay, duplication, or harassment and that additional information may reasonably assist in ruling on the motion. (6) Briefs accompanying motions shall address each issue of law which a party or other person desires the Presiding Officer to consider. Whenever addressing more than one issue, a brief shall be suitably divided into sections which separately address each issue. Such a brief shall contain, immediately following the cover page, a detailed table of contents. (E) Hearing Notice Requirements (1) The Presiding Officer may require any party seeking relief to file a proposed notice of hearing. When a Division is the party seeking relief

and a hearing is required by law, the Division shall file a proposed notice of hearing. (2) A notice of hearing shall clearly state the issues involved; the primary statutes and rules involved; the time, place, and nature of the hearing; any remote or virtual options for attendance; and the legal authority under which the hearing is to be held. (3) Service of a notice of hearing shall be accomplished by delivery in person or by sending via certified mail, return receipt requested, to the party’s or person’s last known address on file with the Department no less than 10 days before the date designated for the hearing, except in cases where a different manner of service or timing is required by law or has been agreed upon by the parties. (4) The expense of furnishing a notice of hearing shall be borne by the party or other person on whose behalf or for whose benefit such notice is given. (F) Filing with the Department (1) Filing, manner and significance (a) Electronic filing is preferred and is made by emailing an electronic copy of the complete filing to the Docket Clerk at DFR.DocketClerk@Vermont.gov. Upon a showing of need and with written permission of the Presiding Officer, filings may be made by mailing a hard copy to the Department offices at 89 Main Street, Montpelier, Vermont 05620-3301. (b) For electronic filings, filing occurs on the date and time the email is sent. For hard copy filings, filing occurs on the date the hard copy is received by the Department. (2) Form of Filings (a) Except as provided in Section 1.04 (F)(2)(b) or as ordered by the Presiding Officer, all pages within a filing shall contain page numbers and fit on paper that is 8 1/2" x 11" in size. A descriptive heading shall appear on each document within a filing, including each exhibit. The case name, docket number, and date the filing was prepared shall appear on the filing. (b) Exhibits within a filing need not comply with the size requirement of Section 1.04 (F)(2)(a) when their purpose or content makes it impracticable to do so, but in all cases where it is not manifestly impracticable to do so, exhibits shall be so designed that they can be printed or folded to a 8 1/2" x 11" size. Exhibits shall be

separately labeled in a way that makes them distinguishable from each other and shall each be referenced and explained in the filing. (G) Service Upon Parties and Other Persons (1) In addition to any other requirement imposed by law, every filing, except a motion seeking an ex parte order, shall, on the same day on which it is filed with the Docket Clerk, be served by the party filing the same upon every party or other person who has filed a notice of appearance. (2) Under this rule, whenever service is required to be made on a party or other person, it shall be made on the attorney or pro se representative whose appearance has been filed on behalf of such party or other person. (3) The service requirements for an initial pleading are addressed in Section 1.04(C)(2). (4) Service of filings other than the initial pleading on a Division shall be accomplished by emailing a copy of the filing using the contact information in the notice of appearance filed on behalf of the Division. (5) Service of filings other than the initial pleading on each party or other person external to the Department who is entitled to be served shall be accomplished by emailing, or using first-class mail to mail, a copy of the filing using the contact information in the party or person’s notice of appearance, except in cases where a different manner of service is required by law. Where a party or other person who is entitled to be served has not filed a notice of appearance, service shall be accomplished by using the party or person’s last known address, except in cases where a different manner of service is required by law. (6) A list of parties and other persons who have filed notices of appearance with their contact information shall be provided by the Docket Clerk upon the request of any party or other person. (7) Each filing shall be accompanied by an attorney’s certificate of service, or an affidavit of a pro se representative, stating upon whom and the means by which the filing has been served. (H) Notices of Appearance (1) Each party or other person who makes a filing in a contested case shall file a notice of appearance with their initial filing that meets the requirements of this Section. (2) A notice of appearance shall identify the full name of the party or other person on whose behalf the individual is entering an appearance; the full name of the individual; the role or title of the individual in relation to the party or other person; the full name of the party or other person; the email

address for the individual; and the mailing address of the individual. If the individual is representing themselves, the notice shall state that the individual is representing themselves. (3) Attorney Notice of Appearance (a) An attorney admitted to practice and in good standing in Vermont may appear in a contested case to represent any party or person. (b) Upon receipt of a motion from an attorney admitted and in good standing in Vermont, the Presiding Officer shall authorize an attorney in good standing in a state other than Vermont or in the District of Columbia to appear in a contested case to represent a party or other person, provided that such attorney has co-counsel who is admitted to practice and in good standing in Vermont. (4) Pro Se Representative Notice of Appearance (a) For purposes of these rules, a person engaged in selfrepresentation shall be known as a “pro se representative.” (b) Any individual may be a pro se representative on their own behalf in a contested case. (c) Upon motion, the Presiding Officer shall authorize the following entities to appear in a contested case through the non-attorney pro se representatives identified below unless, because of the matter’s factual or legal complexity or because of the number of parties to the matter, the Presiding Officer finds that participation of a pro se representative will unnecessarily prolong the proceedings or will result in inadequate exposition of factual or legal matters:
(i) a partnership may be represented by a partner; (ii) an LLC may be represented by an officer, manager, or managing member; and (iii) a cooperative or association may be represented by an officer thereof. (d) Upon motion, the Presiding Officer may permit a corporation other than those specified in (c) to appear in a contested case through a non-attorney pro se representative only if the proposed representative establishes all of the following (i) the corporation cannot afford to hire counsel, nor can it secure counsel on a pro bono basis; (ii) the proposed representative is authorized by the corporation’s board of directors to represent the organization;

(iii) the proposed representative demonstrates adequate legal knowledge and skills to represent the organization without being unduly burdensome; and (iv) the proposed representative shares a common interest with the organization. (e) Nothing in this rule shall relieve any party from the necessity of compliance with any applicable rule, law, practice, procedure, or other requirement. (5) Except as otherwise provided by law, any party, other person, attorney, or pro se representative who has failed to file a notice of appearance in a contested case shall not be entitled to notice or service of any document in connection with such case. (6) Withdrawal of Appearance (a) An attorney who has appeared on behalf of a party may only withdraw upon permission of the Presiding Officer. (b) A person appearing as a pro se representative may withdraw without permission of the Presiding Officer, provided, that if other counsel or pro se representative has not appeared for such person within such reasonable time as allowed by the Presiding Officer, such withdrawal shall be deemed to constitute withdrawal of that party and may result in a default judgement being entered against the party. (I) Answer in Contested Cases (1) The respondent shall file an answer to the pleading which initiated the contested case within 30 days of the date on which the pleading was served or within the time frame established by law, if any. (2) The respondent’s answer shall include all of the following:
(a) A response admitting or denying each allegation made in the document that initiated the contested case. When the respondent intends in good faith to deny only part of an allegation, respondent shall specify the part of the allegation that is denied. Any allegation that is not expressly denied may be deemed admitted. (b) A brief statement of the legal and factual basis of any defense the respondent intends to offer at the hearing. (c) If applicable, whether the respondent requests a hearing. (3) If a respondent does not timely file an answer, the allegations contained in the pleading which initiated the contested case may be

treated as proven and a default judgment may be entered in the case as provided in Section 1.04(V). (J) Defective Filings (1) The Presiding Officer may refuse to accept for filing, or after filing, may reject at any time, filings in contested cases that fail to conform with the requirements of this rule, provided that if it will not unreasonably delay any proceeding nor substantially prejudice the rights of any party, the Presiding Officer shall offer a reasonable opportunity for a party to cure any defect or insufficiency. (2) Such cure, if made, shall be deemed to relate back to the original date of filing. (K) Remote Hearings At the Presiding Officer’s discretion, a hearing in a contested case may be held in whole or in part by telephone conference, video conference, or other electronic means. (L) Postponement or Continuance of Hearing. A hearing in a contested case may be postponed or continued for good cause by the Presiding Officer either sua sponte or upon motion of a party. Notice of any postponement or continuance shall be given in writing to all parties to the hearing within a reasonable time. All parties and other persons involved in a hearing shall attempt to avoid undue delay caused by repetitive postponements or continuances. (M) Ex Parte Orders (1) Unless a different standard is provided by law, the Commissioner shall only issue an ex parte order if the Commissioner finds that the public health, safety, or welfare imperatively requires emergency action before a hearing can be held upon proper notice. (2) A request for an ex parte order shall be in the form of a pleading or motion that meets the requirements of Section 1.04(D). (3) Where an ex parte order is issued, the respondent shall be notified of the respondent’s right to a hearing at the time such order is issued. A respondent shall have 30 days from the notice date to request a hearing unless an alternative timeline is provided by law. (4) A hearing on the issuance of an ex parte order shall generally be held within 30 days of receipt by the Department of the respondent’s request for hearing, and a decision shall be rendered within 60 days after the conclusion of the hearing. The Presiding Officer may enlarge the time to hold the hearing or render a decision upon a showing of good cause.

(N) Sanctions
(1) A party or other person who fails to submit proposed findings or briefs, after having been directed to do so, or who fails to conform to the requirements governing proposed findings or briefsmay be suspended from further participation in the proceeding or for such time period as the Presiding Officer finds to be just. In addition, if a party or other person has failed to conform to the requirements of Section 1.04(V) with respect to any issue of law, such party may be deemed to have waived any argument with respect to such issue, and the claims of the opposing party with respect thereto may be deemed to be the law of the case. (2) A party, other person, attorney, pro se representative, or witness who engages in contemptuous or disruptive behavior before the Presiding Officer during a hearing shall first be warned once off the record in a bench conference with the parties. Thereafter, if the behavior persists, the individual shall be warned once on the record. Thereafter, if such behavior continues, the individual may be suspended from further participation in the proceeding or for such period of time as the Presiding Officer finds to be just. (O) Ex Parte Communication (1) Unless required for the disposition of ex parte matters authorized by law, the Presiding Officer shall not communicate, directly or indirectly, in connection with any issue of fact or law, with any party or the representative of any party, except upon notice and opportunity for all parties to participate. The Presiding Officer:
(a) may communicate with the Docket Clerk as needed to resolve purely administrative and technical matters; and (b) may have the aid and advice of one or more personal assistants. (2) The Commissioner may designate as his personal assistant a Department employee who has had no other role in the case; after such designation the Commissioner’s personal assistant shall be subject to this rule’s prohibition on ex parte communication on the same terms as the Commissioner. (P) Applicability of Vermont Rules of Civil Procedure For all procedural questions on which this rule and the Vermont Administrative Procedure Act are silent, the Vermont Rules of Civil Procedure shall apply. (Q) Waiver of Rules Except where precluded by law, the Presiding Officer may waive these rules when the interest of justice requires. (R) Disposition by Settlement

(1) Unless precluded by law, prior to the issuance of an Order resolving all issues in a contested case, the parties may negotiate a settlement outside the presence of the Presiding Officer. (2) If the parties reach a negotiated settlement, the parties shall notify the Presiding Officer and either seek a stipulated dismissal or submit the settlement to the Presiding Officer in the form of a stipulated and proposed agreement for adoption as an Order. Upon receipt of a stipulated and proposed agreement the Commissioner shall adopt the agreement as an Order unless it is contrary to law or the public interest. (S) Default Judgment (1) If a Respondent, against whom a pleading initiating a contested case has been properly filed and served, fails to answer within the time period specified in these rules, fails to request a hearing, fails to appear at a scheduled hearing, withdraws from a hearing, or otherwise fails to defend the charge, the petitioner may move for a default judgment. (2) If a Hearing Officer has been assigned to the contested case in which a motion for default has been filed, and the Hearing Officer does not deny the motion, the Hearing Officer shall submit a proposal for an affirmative decision on the motion to the Commissioner (3) The Commissioner may render a decision and issue an Order by default at any time after the passage of 10 days from the filing and service of a motion for default. (T) Evidence Evidentiary matters in contested cases are governed by 3 V.S.A. § 810 and Section
1.05 of this Rule.
(U) Non-evidentiary Hearings
(1) When a hearing is held in a contested case that is not an evidentiary hearing, any party or other person with a right to submit comments may offer oral comments or submit written statements up until 4:30 P.M. on the day of the public hearing. The Presiding Officer may place reasonable time limitations on oral comments as necessary for the orderly conduct of the hearing. (2) All hearings held in a contested case that are not evidentiary hearings shall be recorded, and the recording retained by the Department. The hearing, or any part thereof, shall be transcribed by the Department at the request of a party or other person and upon payment by the requesting party or other person of the reasonable costs thereof. (V) Proposed Findings of Fact and Conclusions of Law

The Presiding Officer may require each party or other person to submit proposed findings of fact and conclusions of law in a contested case. Each proposed finding of fact shall deal concisely with a single fact or with a group of facts so interrelated that they cannot reasonably be treated separately. Proposed findings shall be consecutively numbered and shall be in a logical sequence. Proposed findings may be arranged into separate groups, appropriately identified as to subject matter. Each proposed finding shall contain a citation or citations to the specific part or parts of the record containing the evidence upon which the proposed finding is based. (W) Hearing Officer’s Proposal for Decision (1) If a Hearing Officer has been assigned to a contested case, within 30 days of the close of a contested case or the deadline for proposed findings of fact and conclusions of law, the Hearing Officer shall review the proposed findings of fact and conclusions of law, if any, and submit a proposal for decision to the Commissioner. The Commissioner may enlarge the time to submit a proposal upon a showing of good cause by the Hearing Officer. (2) The proposal for decision shall be in writing and shall include findings of fact and conclusions of law, or opinions separately stated. (a) Findings of fact shall be based exclusively on the evidence in the record, including matters officially noticed. Findings of fact, if set forth in statutory language, shall be accompanied by a concise and explicit statement of the underlying facts supporting the finding. If a party or other person submits proposed findings of fact, the proposal for decision shall include a ruling upon each proposed finding. (b) Each conclusion of law shall be supported by authority or reasoned opinion. (3) A proposal for decision shall not be submitted to the Commissioner except upon consideration of the entire record. (4) The Hearing Officer shall serve the proposal for decision on all parties or other persons who have entered a notice of appearance. All parties or other persons who have entered a notice of appearance shall have 10 days from the date of service to file written exceptions and legal briefs and to request oral argument before the Commissioner. (5) The parties and other persons who have entered a notice of appearance may, by written stipulation, waive the opportunity to file exceptions, legal briefs, or request oral argument concerning the proposal for decision before the Commissioner. (6) If a party or other person requests oral argument, such argument shall be

scheduled within a reasonable time.
(X) Commissioner’s Order
(1) The Commissioner shall issue an Order within a reasonable time after receipt of a proposal for decision or, if no Hearing Officer has been assigned to the contested case, after the close of a contested case or the deadline for proposed findings of fact and conclusions of law. Prior to issuing an Order the Commissioner shall review the Hearing Officer’s proposal for decision, if any, and the proposed findings of fact and conclusions of law, if any. (2) The Order shall be in writing and shall include findings of fact and conclusions of law separately stated. (a) Findings of fact shall be based exclusively on the evidence in the record, including matters officially noticed. Findings of fact, if set forth in statutory language, shall be accompanied by a concise and explicit statement of the underlying facts supporting the finding. If a party or other person submits proposed findings of fact, the Order shall include a ruling upon each proposed finding. (b) Each conclusion of law shall be supported by authority or reasoned opinion. (3) An Order shall not be made except upon consideration of the entire record. (4) The Order shall become effective immediately, or as otherwise specified by either the Order or applicable law. (Y) Method for Providing Parties with Orders (1) Ex parte Orders shall be promptly provided to respondents via certified mail, and email if available, using the respondent’s last known address on file with the Department and shall be accompanied by information required in Section 1.04(G). Copies of ex parte Orders shall be promptly provided to the Division by email. (2) All other Orders shall be promptly provided to parties and other persons who entered a notice of appearance in a contested case via certified mail, first-class mail, or email using the contact information in the party or person’s notice of appearance. (Z) Authority of a Hearing Officer. When the Commissioner designates a Hearing Officer to preside over a contested case, the Hearing Officer has the authority to conduct hearings, and take all

necessary action to avoid delay, maintain order, and ensure the development of a clear and complete record. The Hearing Officer shall have all the necessary powers to conduct non-evidentiary and evidentiary hearings, including the power to:
(1) in evidentiary hearings, administer oaths and affirmations; (2) regulate the course of hearings, set the time and place for continued hearings, set deadlines for filing documents, establish the scope and
schedule for discovery, provide for the taking of testimony by deposition
if necessary, and generally conduct the proceeding according to administrative law and this rule; (3) in evidentiary hearings, examine witnesses and direct witnesses to testify, limit the number of times any witness may testify, limit repetitious or cumulative testimony, and set reasonable limits on the amount of time each witness may testify; (4) in evidentiary hearings, rule upon offers of proof and receive relevant evidence; (5) in evidentiary hearings, issue subpoenas that require attendance and testimony or the production of documents and other things; (6) in evidentiary hearings, direct parties to appear and confer for settlement or simplification of issues, and conduct prehearing conferences; (7) dispose of procedural requests or similar matters by written or oral order; (8) deny motions to dismiss, motions for summary judgment, or motions for default judgment by written order; (9) impose sanctions pursuant to Section 1.04(N); (10) enter other procedural and evidentiary orders that carry out the purpose of these rules; and (11) render a proposal for decision or similar document for the Commissioner’s review. (AA) Disqualification of Hearing Officer Any party or other person who has entered a notice of appearance may file a motion, which shall be supported by affidavit, setting forth allegations of personal bias, prejudice, or other facts that the party alleges require disqualification of the Hearing Officer. The Commissioner shall personally determine this issue in writing. (BB) Voluntary recusal

Voluntary recusal by the Hearing Officer is permissible for good cause shown. When a Hearing Officer is disqualified or recused, or it becomes impractical for the Hearing Officer to continue, the Commissioner will determine how to proceed, consistent with these rules.
1.05 ADDITIONAL PROCEDURES FOR EVIDENTIARY HEARINGS
(A) Prehearing Conference
(1) The Presiding Officer may direct the parties to appear for one or more prehearing conferences to consider matters including, but not limited to:
(a) clarification or simplification of the issues; (b) the necessity or desirability of amendments or supplements to any filing; (c) the possibility of obtaining stipulations of fact, documents, or exhibits which will avoid unnecessary disputes or motion practice; (d) to hear any motions that should appropriately be heard and ruled upon prior to the evidentiary hearing; (e) to establish a limitation on the number of expert or other witnesses; and (f) any other matters that may aid in the disposition of the case. (2) The Presiding Officer shall issue a written order which recites the action taken at the pre-hearing conference, including any agreements made by the parties. When entered, such order controls the subsequent course of the proceedings unless later modified in writing. (B) Intervention (1) A person seeking to intervene shall submit a timely motion demonstrating that a statute provides a right to intervene and that the intervention is in the interests of justice and will not disrupt the orderly conduct of the proceedings. (2) The Presiding Officer shall rule on a motion to intervene with reasonable promptness and shall issue a written decision on such motion. (3) The Presiding Officer may restrict an intervenor’s participation to only those issues in which the party has demonstrated an interest, may require such party to join with other parties with respect to representation by counsel or by pro se representative, presentation of evidence or other matters, or may otherwise limit such party’s participation, all as the

interests of justice and economy of adjudication require.
(C) Discovery
(1) The following discovery procedures may be ordered by the Presiding Officer upon the written request of any party when necessary to expedite the proceedings, to ensure a clear or concise record, to ensure a fair opportunity to prepare for the hearing:
(a) production of documents or things;
(b) depositions; and
(c) written interrogatories.
(2) The Presiding Officer may restrict discovery and motion practice when necessary to prevent undue delay, duplication, or harassment or when a particular request is unreasonable, unduly burdensome, or oppressive. (3) The availability of discovery procedures enumerated herein shall in no way limit the authority of the Department to investigate any matter within the jurisdiction of the Department, including investigating and examining the books, accounts, papers, and other documents of any person or entity subject to the Department’s jurisdiction, or to enter and examine the property of any such person or entity. (D) Subpoenas (1) An attorney representing a party in a contested case may issue subpoenas as provided in 3 V.S.A. § 809(h). (2) Upon the written request to the Presiding Officer by any party, and demonstration by the party that it is reasonably necessary to resolve the matter under consideration, the Presiding Officer may issue a subpoena to compel the attendance and testimony of a person at a deposition or an evidentiary hearing or the production of documents or things, subject to the limitations on discovery prescribed in Section 1.05(C)(2). (3) The subpoena shall state the title of the action and the docket number and shall require each person to whom it is directed to attend and give testimony at the time and place specified in the subpoena or to produce documents and things in the time and manner specified in the subpoena. (4) Service by the requesting party of the subpoena shall be accomplished on the person who is the subject of the subpoena using the same means as required for service of subpoenas in Rule 45 of the Vermont Rules of Civil Procedure. Service of the subpoena on parties shall be accomplished as indicated in Section 1.04. (5) Enforcement of, or challenges to, subpoenas issued under these rules may

be brought via the processes identified in 3 V.S.A. §§ 809a and 809b. (E) Transcription An evidentiary hearing shall be transcribed by a stenographer, and the petitioner will bear the cost. (F) Conduct of Hearing Subject to modification by the Presiding Officer, an evidentiary hearing shall proceed as follows:
(1) presentation, argument, and disposition of motions preliminary to a hearing on the merits; (2) opening statements; (3) petitioner’s case in chief and presentation of evidence; (4) respondent’s case in chief and presentation of evidence; (5) petitioner’s case in rebuttal; (6) petitioner’s closing statement, which may include legal argument; (7) respondent’s closing statement, which may include legal argument; and (8) presentation and argument of all motions prior to the Order. (G) Witnesses (1) Before testifying, every witness shall give an oath or affirmation to testify truthfully. The testimony of a witness on direct examination may be offered in written form as prefiled testimony, either by having it read into the record or by offering it for incorporation into the record without reading, provided all parties stipulate to its admission. All crossexamination shall be by live testimony. (2) Form of prefiled testimony. Question/answer format is the preferred form for prefiled testimony. However, testimony may be filed in narrative form if it is typed and double spaced and the narrative includes headers to identify subject matter categories. It is strongly preferred that all prefiled testimony includes line numbers. The prefiled testimony of each witness shall be preceded by a brief statement, set forth on a separate page, containing a summary of the testimony and a numbered list of all exhibits referred to in such testimony. The summary shall not be admitted as evidence. All prefiled testimony shall include a signed statement that it is being submitted under the pains and penalties of perjury. (H) Submission of Evidence

(1) Evidentiary matters are governed by 3 V.S.A. § 810. The Presiding Officer may order any party intending to submit documentary exhibits or written testimony at an evidentiary hearing to provide the opposing party with a copy of those documents and file the originals with the Docket Clerk within a specified time prior to the hearing. The Presiding Officer may also order a party to provide a summary of expected testimony prior to the hearing. The filing of documentary exhibits or written testimony shall not constitute admission of that evidence into the record of the contested case. Documentary exhibits and written testimony which have not been prefiled when such prefiling has been required by the Presiding Officer shall not be admitted into evidence except upon good cause shown. Impeachment exhibits need not be prefiled. (2) Objections to the admissibility of prefiled testimony or exhibits shall be filed in writing not more than 30 days after such evidence has been prefiled or five days before the date of the evidentiary hearing, whichever is earlier. (3) Parties must make good faith efforts among themselves to stipulate to uncontested facts and to resolve or reduce all differences related to evidentiary matters. (4) Parties may make oral objections to evidentiary offers during the hearing. (5) Parties may request confidential treatment of information exempted from public inspection by law. Such a request must cite a specific legal basis for the exemption. (I) Reopening or Rehearing (1) Except if otherwise prohibited by law, if the Commissioner has not issued an Order, the Commissioner may, sua sponte or upon motion, order that a hearing be reopened if a hearing has concluded and the Commissioner finds there is a genuine question as to whether the record evidence is deficient, or for any other reason for which a hearing may be reopened under Vermont law. (2) Except if otherwise prohibited by law, the Commissioner may, upon the motion of a party, order a rehearing where the Commissioner has issued an Order and the Commissioner finds the party has raised a genuine question as to whether the Commissioner has overlooked points of law or fact that would probably affect the outcome, or for any other reason for which rehearing or reargument has been granted in the courts of the State. (3) A motion for reopening shall be filed within 10 days of the date of the conclusion of the hearing, but prior to the issuance of the Commissioner’s Order, and a motion for rehearing shall be filed within

10 days of the date of issuance of the Commissioner’s Order.
(4) Any evidentiary hearing held in conjunction with the reopening of an evidentiary hearing or a rehearing shall be noticed and conducted in the same manner as these rules provide for an original hearing. The evidence received at the hearing shall become part of the record for the Commissioner’s consideration and for judicial review. An Order may be affirmed, amended, or vacated after rehearing. (J) Waiver of Evidentiary Hearing Unless precluded by law, an evidentiary hearing may be waived in the Commissioner’s discretion if all parties and other persons who have filed a notice of appearance waive, by written stipulation, the opportunity for an evidentiary hearing.
1.06 Appeals
In several instances, the specific process to appeal an Order is identified in subject-matter specific statutes. In instances where there is not a subject-matter specific process to appeal, 8 V.S.A. § 16 and 3 V.S.A. § 815 provide the appeals process. In all instances where a party seeks to appeal an Order of the Commissioner, a Notice of Appeal shall be filed with both the Department and the applicable court of jurisdiction. Upon receipt of a Notice of Appeal, the Department will compile the record of the administrative process and submit the record to the court.
1.07 Petitions for Rulemaking
(A) Petitions for the adoption, amendment, or repeal of any rule shall be entertained by the Commissioner in accordance with 3 V.S.A. § 806. Any such petition shall be filed with the Commissioner in accordance with Section 1.04(D). The petition will be considered informally and, within 30 days after the filing of the petition, the Commissioner shall either deny the petition, stating the reasons for the denial in writing, or shall initiate rulemaking proceedings under 3 V.S.A. Chapter 25, Subchapter 3. (B) When requested by 25 or more persons or by the Legislative Committee on Administrative Rules, the Commissioner shall initiate rulemaking proceedings to adopt an existing practice or procedure as a rule, as required by 3 V.S.A. § 831(c). A request under this subsection shall be filed with the Commissioner in accordance with Section 1.04(D).
1.08 Rulemaking Hearings
Department rules shall be adopted by taking the steps described in Subchapter 3 of the Vermont Administrative Procedure Act, 3 V.S.A. Chapter 25. The Department is not mandated by law to hold a public hearing in the context of rulemaking unless a petition is filed requesting a hearing pursuant to 3 V.S.A. § 840. Such petition shall be filed in accordance with Section 1.04(D).

Nonetheless, holding rulemaking hearings is the norm, as the Department seeks to maximize public participation in the rulemaking process. Rulemakings are not contested cases and may be conducted on a less formal basis than contested cases. Department rulemaking hearings shall proceed in the following manner unless good cause exists to deviate. Department staff will preside at the rulemaking hearing. The purpose of the rulemaking hearing will be to gather public comments on the proposed rule rather than to respond to such comments or to debate the substance of the proposed rule. Department staff may place reasonable time limits on individual comments as necessary for the orderly conduct of the hearing. The hearing will remain open for a reasonable time sufficient to hear such comments as are presented, and for a minimum of 20 minutes even if no commenters are present. All hearings will be recorded and the recording saved in the rulemaking file.
1.09 Petitions for Declaratory Rulings
Pursuant to 3 V.S.A. § 808, an interested person may petition the Commissioner for a declaratory ruling as to the applicability of any statutory provision or of any rule or order of the Commissioner. Any such petition shall be filed with the Commissioner in accordance with
Section 1.04(D). The petition shall identify the statute, rule, or order involved, shall state the
specific facts to which the statute, rule, or order is sought to be applied and shall be accompanied by a legal brief addressing any issue of law which the petitioner desires the Commissioner to consider. Petitions for declaratory rulings under this section will be considered informally unless good cause is shown for more formal proceedings.
1.10 Petitions to Describe an Existing Practice
Pursuant to 3 V.S.A. § 831(b), an interested person may petition the Commissioner to adopt a procedure describing an existing practice of the Department. Any such petition shall be filed with the Commissioner in accordance with Section 1.04(D). The petition shall be considered informally unless good cause is shown for more formal proceedings.
1.11 Conflict
In the event this rule or any section herein conflicts with Vermont statute, the Vermont statute shall govern.
1.12 Severability
If any provision of this rule or the application thereof to any person or circumstance is for any reason held to be invalid, the remainder of the rule and the application of such provisions to other persons or circumstances shall not be affected thereby.
1.13 Effective Date
This rule is effective on __________.

E. Transcription
F. Conduct of Hearing
G. Witnesses
H. Submission of Evidence
I. Reopening or Rehearing
J. Waiver of Evidentiary Hearing
1.06 Appeals
1.07 Petitions for Rulemaking
1.08 Rulemaking Hearings
1.09 Petitions for Declaratory Rulings
1.10 Petition to Describe an Existing Practice
1.11 Conflict
1.12 Severability
1.13 Effective Date

1.01 Purpose and Applicability
(A) This rule establishes the procedures for the Department’s administrative proceedings as to matters within the Commissioner’s jurisdiction and for which an administrative remedy is available by law. (B) All provisions in Section 1.04 apply to contested cases. (C) All provisions in Section 1.05 apply to evidentiary hearings in contested cases. (D) The Department may apply all or some of the provisions of Sections 1.04 and 1.05 in proceedings that are not contested cases when such application would be prudent.
1.02 Definitions
“Commissioner” means the Commissioner of Financial Regulation.
“Department” means the Vermont Department of Financial Regulation. “Day” means a calendar day. “Division” means the Insurance Division, Captive Insurance Division, Banking Division, or Securities Division of the Department. “Docket Clerk” means the Department employee responsible for matters related to tracking contested cases, including, but not limited to, assigning a docket number, scheduling hearings, keeping a current service list, and maintaining the official repository for filings. “Hearing Officer” means the person designated by the Commissioner to conduct a contested case hearing and associated proceedings. “Order” means the final decision of the Commissioner on part or the whole of a matter. “Presiding Officer” means the Commissioner or, if the Commissioner has appointed one, the Hearing Officer. “Respondent” means a person against whom a contested case has been commenced.
1.03 Rules of Construction
The statutory definitions of other terms, including but not limited to “contested case,” “license,” “party,” “person,” “practice,” “procedure,” and “rule” set forth in 3 V.S.A. § 801 are hereby adopted and made a
part of this rule.
Singular words may be applied as if plural and plural words may be applied as if singular unless such application is contrary to applicable law.
1.04 General Procedures for Department Administrative Proceedings
(A) Docketing
Contested cases, and such other matters as the Commissioner or Docket Clerk shall designate, shall be assigned a docket number. (B) Assignment of Hearing Officer

The Commissioner may assign a Hearing Officer in a contested case. (C) Initiation of Contested Case (1) Initiation by Division or External Parties (a) A contested case is initiated by filing a petition, other pleading, or motion with the Docket Clerk as provided in Section 1.04(D). (b) An application that is treated as a contested case under the Vermont Administrative Procedure Act shall be considered a pleading for the purpose of initiating a proceeding. (c) The initiating party shall include with its initial pleading the following:
(i) a notice addressing the right of any party or other person to request a hearing, if such right is afforded by law; (ii) a notice of appearance which meets the requirements of Section 1.04(F); (iii) a certificate of service or affidavit which meets the requirements of Section 1.04(E)(5); and (iv) a statement identifying by name, email address, and mailing address each party or other person entitled to notice of the filing or proceeding, including information for all attorneys representing any such person, party, or other entity, if known. (2) Service of Initial Pleading (a) Service upon a Division. Service of the initial pleading upon a Division shall be accomplished by filing the pleading with the Docket Clerk. (b) Service upon External Parties. Service of the initial pleading upon each party and other person external to the Department entitled to be served shall be accomplished by delivery in person or by sending via certified mail, return receipt requested, to the party’s or person’s last known address on file with the Department, except in cases where a different manner of service is required by law or the external party or person has authorized service by other means. (D) Pleadings and Motions (1) Every pleading and motion shall describe in detail the order or relief sought and include a statement of reasons and the legal authority on which it is based. (2) Every pleading and motion shall be signed by at least one attorney or pro se representative of record in the individual name of the attorney or pro se representative. The signature of an attorney or pro se representative of record constitutes a certificate by such person that to the best of the person’s knowledge,

information, and belief there are good grounds to support the motion or other pleading; all legal contentions are supported by existing law or by a nonfrivolous argument for the extension, modification, or reversal of existing law or the establishment of new law; all factual contentions have evidentiary support, or, if specifically so identified, are likely to have evidentiary support after a reasonable opportunity for further investigation or discovery; and that the motion or other pleading is not intended to delay the proceedings. (3) Motions not made during the hearing shall be submitted in writing and, if they raise a substantial issue of law, supported by a brief. The Presiding Officer may require motions made during a hearing to be subsequently submitted in writing and, if they raise a substantial issue of law, supported by a brief, within a specific time frame. (4) The Presiding Officer may decline to consider a motion not made within a reasonable time after the issue first arises. (5) Parties and other persons who have entered notices of appearance may file responses in opposition to or support of a motion within the time frame specified by the Presiding Officer. The Presiding Officer may allow the filing of a reply to a response in opposition or support upon the request of a party when the Presiding Officer determines that allowing such filing will not cause undue delay, duplication, or harassment and that additional information may reasonably assist in ruling on the motion. (6) Briefs accompanying motions shall address each issue of law which a party or other person desires the Presiding Officer to consider. Whenever addressing more than one issue, a brief shall be suitably divided into sections which separately address each issue. Such a brief shall contain, immediately following the cover page, a detailed table of contents. (E) Hearing Notice Requirements (1) The Presiding Officer may require any party seeking relief to file a proposed notice of hearing. When a Division is the party seeking relief and a hearing is required by law, the Division shall file a proposed notice of hearing. (2) A notice of hearing shall clearly state the issues involved; the primary statutes and rules involved; the time, place, and nature of the hearing; any remote or virtual options for attendance; and the legal authority under which the hearing is to be held. (3) Service of a notice of hearing shall be accomplished by delivery in person or by sending via certified mail, return receipt requested, to the party’s or person’s last known address on file with the Department no less than 10 days before the date designated for the hearing, except in cases where a different manner of service or timing is required by law or has been agreed upon by the parties. (4) The expense of furnishing a notice of hearing shall be borne by the party or other person on whose behalf or for whose benefit such notice is given.

(F) Filing with the Department
(1) Filing, manner and significance
(a) Electronic filing is preferred and is made by emailing an electronic copy of the complete filing to the Docket Clerk at DFR.DocketClerk@Vermont.gov. Upon a showing of need and with written permission of the Presiding Officer, filings may be made by mailing a hard copy to the Department offices at 89 Main Street, Montpelier, Vermont 05620-3301. (b) For electronic filings, filing occurs on the date and time the email is sent. For hard copy filings, filing occurs on the date the hard copy is received by the Department. (2) Form of Filings (a) Except as provided in Section 1.04 (F)(2)(b) or as ordered by the Presiding Officer, all pages within a filing shall contain page numbers and fit on paper that is 8 1/2" x 11" in size. A descriptive heading shall appear on each document within a filing, including each exhibit. The case name, docket number, and date the filing was prepared shall appear on the filing. (b) Exhibits within a filing need not comply with the size requirement of
Section 1.04 (F)(2)(a) when their purpose or content makes it
impracticable to do so, but in all cases where it is not manifestly impracticable to do so, exhibits shall be so designed that they can be printed or folded to a 8 1/2" x 11" size. Exhibits shall be separately labeled in a way that makes them distinguishable from each other and shall each be referenced and explained in the filing. (G) Service Upon Parties and Other Persons (1) In addition to any other requirement imposed by law, every filing, except a motion seeking an ex parte order, shall, on the same day on which it is filed with the Docket Clerk, be served by the party filing the same upon every party or other person who has filed a notice of appearance. (2) Under this rule, whenever service is required to be made on a party or other person, it shall be made on the attorney or pro se representative whose appearance has been filed on behalf of such party or other person. (3) The service requirements for an initial pleading are addressed in Section 1.04(C)(2). (4) Service of filings other than the initial pleading on a Division shall be accomplished by emailing a copy of the filing using the contact information in the notice of appearance filed on behalf of the Division.

(5) Service of filings other than the initial pleading on each party or other person external to the Department who is entitled to be served shall be accomplished by emailing, or using first-class mail to mail, a copy of the filing using the contact information in the party or person’s notice of appearance, except in cases where a different manner of service is required by law. Where a party or other person who is entitled to be served has not filed a notice of appearance, service shall be accomplished by using the party or person’s last known address, except in cases where a different manner of service is required by law. (6) A list of parties and other persons who have filed notices of appearance with their contact information shall be provided by the Docket Clerk upon the request of any party or other person. (7) Each filing shall be accompanied by an attorney’s certificate of service, or an affidavit of a pro se representative, stating upon whom and the means by which the filing has been served. (H) Notices of Appearance (1) Each party or other person who makes a filing in a contested case shall file a notice of appearance with their initial filing that meets the requirements of this Section. (2) A notice of appearance shall identify the full name of the party or other person on whose behalf the individual is entering an appearance; the full name of the individual; the role or title of the individual in relation to the party or other person; the full name of the party or other person; the email address for the individual; and the mailing address of the individual. If the individual is representing themselves, the notice shall state that the individual is representing themselves. (3) Attorney Notice of Appearance (a) An attorney admitted to practice and in good standing in Vermont may appear in a contested case to represent any party or person. (b) Upon receipt of a motion from an attorney admitted and in good standing in Vermont, the Presiding Officer shall authorize an attorney in good standing in a state other than Vermont or in the District of Columbia to appear in a contested case to represent a party or other person, provided that such attorney has co-counsel who is admitted to practice and in good standing in Vermont. (4) Pro Se Representative Notice of Appearance (a) For purposes of these rules, a person engaged in self- representation shall be known as a “pro se representative.” (b) Any individual may be a pro se representative on their own behalf in a contested case.

(c) Upon motion, the Presiding Officer shall authorize the following entities to appear in a contested case through the non-attorney pro se representatives identified below unless, because of the matter’s factual or legal complexity or because of the number of parties to the matter, the Presiding Officer finds that participation of a pro se representative will unnecessarily prolong the proceedings or will result in inadequate exposition of factual or legal matters:
(i) a partnership may be represented by a partner; (ii) an LLC may be represented by an officer, manager, or managing member; and (iii) a cooperative or association may be represented by an officer thereof. (d) Upon motion, the Presiding Officer may permit a corporation other than those specified in (c) to appear in a contested case through a nonattorney pro se representative only if the proposed representative establishes all of the following (i) the corporation cannot afford to hire counsel, nor can it secure counsel on a pro bono basis; (ii) the proposed representative is authorized by the corporation’s board of directors to represent the organization; (iii) the proposed representative demonstrates adequate legal knowledge and skills to represent the organization without being unduly burdensome; and (iv) the proposed representative shares a common interest with the organization. (e) Nothing in this rule shall relieve any party from the necessity of compliance with any applicable rule, law, practice, procedure, or other requirement. (5) Except as otherwise provided by law, any party, other person, attorney, or pro se representative who has failed to file a notice of appearance in a contested case shall not be entitled to notice or service of any document in connection with such case. (6) Withdrawal of Appearance (a) An attorney who has appeared on behalf of a party may only withdraw upon permission of the Presiding Officer. (b) A person appearing as a pro se representative may withdraw without permission of the Presiding Officer, provided, that if other counsel or pro se representative has not appeared for such person within such reasonable time as allowed by the Presiding Officer, such withdrawal shall be deemed to constitute withdrawal of that party and may result in a default judgement being entered against the party. (I) Answer in Contested Cases

(1) The respondent shall file an answer to the pleading which initiated the contested case within 30 days of the date on which the pleading was served or within the time frame established by law, if any. (2) The respondent’s answer shall include all of the following:
(a) A response admitting or denying each allegation made in the document that initiated the contested case. When the respondent intends in good faith to deny only part of an allegation, respondent shall specify the part of the allegation that is denied. Any allegation that is not expressly denied may be deemed admitted. (b) A brief statement of the legal and factual basis of any defense the respondent intends to offer at the hearing. (c) If applicable, whether the respondent requests a hearing. (3) If a respondent does not timely file an answer, the allegations contained in the pleading which initiated the contested case may be treated as proven and a default judgment may be entered in the case as provided in Section 1.04(V). (J) Defective Filings (1) The Presiding Officer may refuse to accept for filing, or after filing, may reject at any time, filings in contested cases that fail to conform with the requirements of this rule, provided that if it will not unreasonably delay any proceeding nor substantially prejudice the rights of any party, the Presiding Officer shall offer a reasonable opportunity for a party to cure any defect or insufficiency. (2) Such cure, if made, shall be deemed to relate back to the original date of filing. (K) Remote Hearings At the Presiding Officer’s discretion, a hearing in a contested case may be held in whole or in part by telephone conference, video conference, or other electronic means. (L) Postponement or Continuance of Hearing. A hearing in a contested case may be postponed or continued for good cause by the Presiding Officer either sua sponte or upon motion of a party. Notice of any postponement or continuance shall be given in writing to all parties to the hearing within a reasonable time. All parties and other persons involved in a hearing shall attempt to avoid undue delay caused by repetitive postponements or continuances. (M) Ex Parte Orders (1) Unless a different standard is provided by law, the Commissioner shall only issue an ex parte order if the Commissioner finds that the public health, safety, or welfare imperatively requires emergency action before a hearing can be held upon proper notice. (2) A request for an ex parte order shall be in the form of a pleading or motion that

meets the requirements of Section 1.04(D).
(3) Where an ex parte order is issued, the respondent shall be notified of the respondent’s right to a hearing at the time such order is issued. A respondent shall have 30 days from the notice date to request a hearing unless an alternative timeline is provided by law. (4) A hearing on the issuance of an ex parte order shall generally be held within 30 days of receipt by the Department of the respondent’s request for hearing, and a decision shall be rendered within 60 days after the conclusion of the hearing. The Presiding Officer may enlarge the time to hold the hearing or render a decision upon a showing of good cause. (N) Sanctions (1) A party or other person who fails to submit proposed findings or briefs, after having been directed to do so, or who fails to conform to the requirements governing proposed findings or briefsmay be suspended from further participation in the proceeding or for such time period as the Presiding Officer finds to be just. In addition, if a party or other person has failed to conform to the requirements of Section 1.04(V) with respect to any issue of law, such party may be deemed to have waived any argument with respect to such issue, and the claims of the opposing party with respect thereto may be deemed to be the law of the case. (2) A party, other person, attorney, pro se representative, or witness who engages in contemptuous or disruptive behavior before the Presiding Officer during a hearing shall first be warned once off the record in a bench conference with the parties. Thereafter, if the behavior persists, the individual shall be warned once on the record. Thereafter, if such behavior continues, the individual may be suspended from further participation in the proceeding or for such period of time as the Presiding Officer finds to be just. (O) Ex Parte Communication (1) Unless required for the disposition of ex parte matters authorized by law, the Presiding Officer shall not communicate, directly or indirectly, in connection with any issue of fact or law, with any party or the representative of any party, except upon notice and opportunity for all parties to participate. The Presiding Officer:
(a) may communicate with the Docket Clerk as needed to resolve purely administrative and technical matters; and (b) may have the aid and advice of one or more personal assistants. (2) The Commissioner may designate as his personal assistant a Department employee who has had no other role in the case; after such designation the Commissioner’s personal assistant shall be subject to this rule’s prohibition on ex parte communication on the same terms as the Commissioner. (P) Applicability of Vermont Rules of Civil Procedure

For all procedural questions on which this rule and the Vermont Administrative Procedure Act are silent, the Vermont Rules of Civil Procedure shall apply. (Q) Waiver of Rules Except where precluded by law, the Presiding Officer may waive these rules when the interest of justice requires. (R) Disposition by Settlement (1) Unless precluded by law, prior to the issuance of an Order resolving all issues in a contested case, the parties may negotiate a settlement outside the presence of the Presiding Officer. (2) If the parties reach a negotiated settlement, the parties shall notify the Presiding Officer and either seek a stipulated dismissal or submit the settlement to the Presiding Officer in the form of a stipulated and proposed agreement for adoption as an Order. Upon receipt of a stipulated and proposed agreement the Commissioner shall adopt the agreement as an Order unless it is contrary to law or the public interest. (S) Default Judgment (1) If a Respondent, against whom a pleading initiating a contested case has been properly filed and served, fails to answer within the time period specified in these rules, fails to request a hearing, fails to appear at a scheduled hearing, withdraws from a hearing, or otherwise fails to defend the charge, the petitioner may move for a default judgment. (2) If a Hearing Officer has been assigned to the contested case in which a motion for default has been filed, and the Hearing Officer does not deny the motion, the Hearing Officer shall submit a proposal for an affirmative decision on the motion to the Commissioner (3) The Commissioner may render a decision and issue an Order by default at any time after the passage of 10 days from the filing and service of a motion for default. (T) Evidence Evidentiary matters in contested cases are governed by 3 V.S.A. § 810 and Section 1.05 of this Rule. (U) Non-evidentiary Hearings (1) When a hearing is held in a contested case that is not an evidentiary hearing, any party or other person with a right to submit comments may offer oral comments or submit written statements up until 4:30 P.M. on the day of the public hearing. The Presiding Officer may place reasonable time limitations on oral comments as necessary for the orderly conduct of the hearing. (2) All hearings held in a contested case that are not evidentiary hearings shall be

recorded, and the recording retained by the Department. The hearing, or any
part thereof, shall be transcribed by the Department at the request of a party or
other person and upon payment by the requesting party or other person of the reasonable costs thereof. (V) Proposed Findings of Fact and Conclusions of Law The Presiding Officer may require each party or other person to submit proposed findings of fact and conclusions of law in a contested case. Each proposed finding of fact shall deal concisely with a single fact or with a group of facts so interrelated that they cannot reasonably be treated separately. Proposed findings shall be consecutively numbered and shall be in a logical sequence. Proposed findings may be arranged into separate groups, appropriately identified as to subject matter. Each proposed finding shall contain a citation or citations to the specific part or parts of the record containing the evidence upon which the proposed finding is based. (W) Hearing Officer’s Proposal for Decision (1) If a Hearing Officer has been assigned to a contested case, within 30 days of the close of a contested case or the deadline for proposed findings of fact and conclusions of law, the Hearing Officer shall review the proposed findings of fact and conclusions of law, if any, and submit a proposal for decision to the Commissioner. The Commissioner may enlarge the time to submit a proposal upon a showing of good cause by the Hearing Officer. (2) The proposal for decision shall be in writing and shall include findings of fact and conclusions of law, or opinions separately stated. (a) Findings of fact shall be based exclusively on the evidence in the record, including matters officially noticed. Findings of fact, if set forth in statutory language, shall be accompanied by a concise and explicit statement of the underlying facts supporting the finding. If a party or other person submits proposed findings of fact, the proposal for decision shall include a ruling upon each proposed finding. (b) Each conclusion of law shall be supported by authority or reasoned opinion. (3) A proposal for decision shall not be submitted to the Commissioner except upon consideration of the entire record. (4) The Hearing Officer shall serve the proposal for decision on all parties or other persons who have entered a notice of appearance. All parties or other persons who have entered a notice of appearance shall have 10 days from the date of service to file written exceptions and legal briefs and to request oral argument before the Commissioner. (5) The parties and other persons who have entered a notice of appearance may, by written stipulation, waive the opportunity to file exceptions, legal briefs, or request oral argument concerning the proposal for decision before the Commissioner.

(6) If a party or other person requests oral argument, such argument shall be scheduled within a reasonable time. (X) Commissioner’s Order (1) The Commissioner shall issue an Order within a reasonable time after receipt of a proposal for decision or, if no Hearing Officer has been assigned to the contested case, after the close of a contested case or the deadline for proposed findings of fact and conclusions of law. Prior to issuing an Order the Commissioner shall review the Hearing Officer’s proposal for decision, if any, and the proposed findings of fact and conclusions of law, if any. (2) The Order shall be in writing and shall include findings of fact and conclusions of law separately stated. (a) Findings of fact shall be based exclusively on the evidence in the record, including matters officially noticed. Findings of fact, if set forth in statutory language, shall be accompanied by a concise and explicit statement of the underlying facts supporting the finding. If a party or other person submits proposed findings of fact, the Order shall include a ruling upon each proposed finding. (b) Each conclusion of law shall be supported by authority or reasoned opinion. (3) An Order shall not be made except upon consideration of the entire record. (4) The Order shall become effective immediately, or as otherwise specified by either the Order or applicable law. (Y) Method for Providing Parties with Orders (1) Ex parte Orders shall be promptly provided to respondents via certified mail, and email if available, using the respondent’s last known address on file with the Department and shall be accompanied by information required in Section 1.04(G). Copies of ex parte Orders shall be promptly provided to the Division by email. (2) All other Orders shall be promptly provided to parties and other persons who entered a notice of appearance in a contested case via certified mail, first-class mail, or email using the contact information in the party or person’s notice of appearance. (Z) Authority of a Hearing Officer. When the Commissioner designates a Hearing Officer to preside over a contested case, the Hearing Officer has the authority to conduct hearings, and take all necessary action to avoid delay, maintain order, and ensure the development of a clear and complete record. The Hearing Officer shall have all the necessary powers to conduct nonevidentiary and evidentiary hearings, including the power to:

(1) in evidentiary hearings, administer oaths and affirmations; (2) regulate the course of hearings, set the time and place for continued hearings, set deadlines for filing documents, establish the scope and schedule for discovery, provide for the taking of testimony by deposition if necessary, and generally conduct the proceeding according to administrative law and this rule; (3) in evidentiary hearings, examine witnesses and direct witnesses to testify, limit the number of times any witness may testify, limit repetitious or cumulative testimony, and set reasonable limits on the amount of time each witness may testify; (4) in evidentiary hearings, rule upon offers of proof and receive relevant evidence; (5) in evidentiary hearings, issue subpoenas that require attendance and testimony or the production of documents and other things; (6) in evidentiary hearings, direct parties to appear and confer for settlement or simplification of issues, and conduct prehearing conferences; (7) dispose of procedural requests or similar matters by written or oral order; (8) deny motions to dismiss, motions for summary judgment, or motions for default judgment by written order; (9) impose sanctions pursuant to Section 1.04(N); (10) enter other procedural and evidentiary orders that carry out the purpose of these rules; and (11) render a proposal for decision or similar document for the Commissioner’s review. (AA) Disqualification of Hearing Officer Any party or other person who has entered a notice of appearance may file a motion, which shall be supported by affidavit, setting forth allegations of personal bias, prejudice, or other facts that the party alleges require disqualification of the Hearing Officer. The Commissioner shall personally determine this issue in writing. (BB) Voluntary recusal Voluntary recusal by the Hearing Officer is permissible for good cause shown. When a Hearing Officer is disqualified or recused, or it becomes impractical for the Hearing Officer to continue, the Commissioner will determine how to proceed, consistent with these rules.
1.05 ADDITIONAL PROCEDURES FOR EVIDENTIARY HEARINGS
(A) Prehearing Conference
(1) The Presiding Officer may direct the parties to appear for one or more prehearing conferences to consider matters including, but not limited to:

(a) clarification or simplification of the issues; (b) the necessity or desirability of amendments or supplements to any filing; (c) the possibility of obtaining stipulations of fact, documents, or exhibits which will avoid unnecessary disputes or motion practice; (d) to hear any motions that should appropriately be heard and ruled upon prior to the evidentiary hearing; (e) to establish a limitation on the number of expert or other witnesses; and (f) any other matters that may aid in the disposition of the case. (2) The Presiding Officer shall issue a written order which recites the action taken at the pre-hearing conference, including any agreements made by the parties. When entered, such order controls the subsequent course of the proceedings unless later modified in writing. (B) Intervention (1) A person seeking to intervene shall submit a timely motion demonstrating that a statute provides a right to intervene and that the intervention is in the interests of justice and will not disrupt the orderly conduct of the proceedings. (2) The Presiding Officer shall rule on a motion to intervene with reasonable promptness and shall issue a written decision on such motion. (3) The Presiding Officer may restrict an intervenor’s participation to only those issues in which the party has demonstrated an interest, may require such party to join with other parties with respect to representation by counsel or by pro se representative, presentation of evidence or other matters, or may otherwise limit such party’s participation, all as the interests of justice and economy of adjudication require. (C) Discovery (1) The following discovery procedures may be ordered by the Presiding Officer upon the written request of any party when necessary to expedite the proceedings, to ensure a clear or concise record, to ensure a fair opportunity to prepare for the hearing:
(a) production of documents or things;
(b) depositions; and
(c) written interrogatories.
(2) The Presiding Officer may restrict discovery and motion practice when necessary to prevent undue delay, duplication, or harassment or when a particular request is unreasonable, unduly burdensome, or oppressive. (3) The availability of discovery procedures enumerated herein shall in no way

limit the authority of the Department to investigate any matter within the jurisdiction of the Department, including investigating and examining the books, accounts, papers, and other documents of any person or entity subject to the Department’s jurisdiction, or to enter and examine the property of any such person or entity. (D) Subpoenas (1) An attorney representing a party in a contested case may issue subpoenas as provided in 3 V.S.A. § 809(h). (2) Upon the written request to the Presiding Officer by any party, and demonstration by the party that it is reasonably necessary to resolve the matter under consideration, the Presiding Officer may issue a subpoena to compel the attendance and testimony of a person at a deposition or an evidentiary hearing or the production of documents or things, subject to the limitations on discovery prescribed in Section 1.05(C)(2). (3) The subpoena shall state the title of the action and the docket number and shall require each person to whom it is directed to attend and give testimony at the time and place specified in the subpoena or to produce documents and things in the time and manner specified in the subpoena. (4) Service by the requesting party of the subpoena shall be accomplished on the person who is the subject of the subpoena using the same means as required for service of subpoenas in Rule 45 of the Vermont Rules of Civil Procedure. Service of the subpoena on parties shall be accomplished as indicated in Section 1.04. (5) Enforcement of, or challenges to, subpoenas issued under these rules may be brought via the processes identified in 3 V.S.A. §§ 809a and 809b. (E) Transcription An evidentiary hearing shall be transcribed by a stenographer, and the petitioner will bear the cost. (F) Conduct of Hearing Subject to modification by the Presiding Officer, an evidentiary hearing shall proceed as follows:
(1) presentation, argument, and disposition of motions preliminary to a hearing on the merits; (2) opening statements; (3) petitioner’s case in chief and presentation of evidence; (4) respondent’s case in chief and presentation of evidence; (5) petitioner’s case in rebuttal; (6) petitioner’s closing statement, which may include legal argument;

(7) respondent’s closing statement, which may include legal argument; and (8) presentation and argument of all motions prior to the Order. (G) Witnesses (1) Before testifying, every witness shall give an oath or affirmation to testify truthfully. The testimony of a witness on direct examination may be offered in written form as prefiled testimony, either by having it read into the record or by offering it for incorporation into the record without reading, provided all parties stipulate to its admission. All cross- examination shall be by live testimony. (2) Form of prefiled testimony. Question/answer format is the preferred form for prefiled testimony. However, testimony may be filed in narrative form if it is typed and double spaced and the narrative includes headers to identify subject matter categories. It is strongly preferred that all prefiled testimony includes line numbers. The prefiled testimony of each witness shall be preceded by a brief statement, set forth on a separate page, containing a summary of the testimony and a numbered list of all exhibits referred to in such testimony. The summary shall not be admitted as evidence. All prefiled testimony shall include a signed statement that it is being submitted under the pains and penalties of perjury. (H) Submission of Evidence (1) Evidentiary matters are governed by 3 V.S.A. § 810. The Presiding Officer may order any party intending to submit documentary exhibits or written testimony at an evidentiary hearing to provide the opposing party with a copy of those documents and file the originals with the Docket Clerk within a specified time prior to the hearing. The Presiding Officer may also order a party to provide a summary of expected testimony prior to the hearing. The filing of documentary exhibits or written testimony shall not constitute admission of that evidence into the record of the contested case. Documentary exhibits and written testimony which have not been prefiled when such prefiling has been required by the Presiding Officer shall not be admitted into evidence except upon good cause shown. Impeachment exhibits need not be prefiled. (2) Objections to the admissibility of prefiled testimony or exhibits shall be filed in writing not more than 30 days after such evidence has been prefiled or five days before the date of the evidentiary hearing, whichever is earlier. (3) Parties must make good faith efforts among themselves to stipulate to uncontested facts and to resolve or reduce all differences related to evidentiary matters. (4) Parties may make oral objections to evidentiary offers during the hearing. (5) Parties may request confidential treatment of information exempted from public inspection by law. Such a request must cite a specific legal basis for the exemption.

(I) Reopening or Rehearing
(1) Except if otherwise prohibited by law, if the Commissioner has not issued an Order, the Commissioner may, sua sponte or upon motion, order that a hearing be reopened if a hearing has concluded and the Commissioner finds there is a genuine question as to whether the record evidence is deficient, or for any other reason for which a hearing may be reopened under Vermont law. (2) Except if otherwise prohibited by law, the Commissioner may, upon the motion of a party, order a rehearing where the Commissioner has issued an Order and the Commissioner finds the party has raised a genuine question as to whether the Commissioner has overlooked points of law or fact that would probably affect the outcome, or for any other reason for which rehearing or reargument has been granted in the courts of the State. (3) A motion for reopening shall be filed within 10 days of the date of the conclusion of the hearing, but prior to the issuance of the Commissioner’s Order, and a motion for rehearing shall be filed within 10 days of the date of issuance of the Commissioner’s Order. (4) Any evidentiary hearing held in conjunction with the reopening of an evidentiary hearing or a rehearing shall be noticed and conducted in the same manner as these rules provide for an original hearing. The evidence received at the hearing shall become part of the record for the Commissioner’s consideration and for judicial review. An Order may be affirmed, amended, or vacated after rehearing. (J) Waiver of Evidentiary Hearing Unless precluded by law, an evidentiary hearing may be waived in the Commissioner’s discretion if all parties and other persons who have filed a notice of appearance waive, by written stipulation, the opportunity for an evidentiary hearing.
1.06 Appeals
In several instances, the specific process to appeal an Order is identified in subject-matter specific statutes. In instances where there is not a subject-matter specific process to appeal, 8 V.S.A. § 16 and 3 V.S.A. § 815 provide the appeals process. In all instances where a party seeks to appeal an Order of the Commissioner, a Notice of Appeal shall be filed with both the Department and the applicable court of jurisdiction. Upon receipt of a Notice of Appeal, the Department will compile the record of the administrative process and submit the record to the court.
1.07 Petitions for Rulemaking
(A) Petitions for the adoption, amendment, or repeal of any rule shall be entertained by the Commissioner in accordance with 3 V.S.A. § 806. Any such petition shall be filed with the Commissioner in accordance with Section 1.04(D). The petition will be considered informally and, within 30 days after the filing of the petition, the Commissioner shall either deny the petition, stating the reasons for the denial in writing, or shall initiate

rulemaking proceedings under 3 V.S.A. Chapter 25, Subchapter 3. (B) When requested by 25 or more persons or by the Legislative Committee on Administrative Rules, the Commissioner shall initiate rulemaking proceedings to adopt an existing practice or procedure as a rule, as required by 3 V.S.A. § 831(c). A request under this subsection shall be filed with the Commissioner in accordance with Section 1.04(D).
1.08 Rulemaking Hearings
Department rules shall be adopted by taking the steps described in Subchapter 3 of the Vermont Administrative Procedure Act, 3 V.S.A. Chapter 25. The Department is not mandated by law to hold a public hearing in the context of rulemaking unless a petition is filed requesting a hearing pursuant to 3 V.S.A. § 840. Such petition shall be filed in accordance with Section 1.04(D). Nonetheless, holding rulemaking hearings is the norm, as the Department seeks to maximize public participation in the rulemaking process. Rulemakings are not contested cases and may be conducted on a less formal basis than contested cases. Department rulemaking hearings shall proceed in the following manner unless good cause exists to deviate. Department staff will preside at the rulemaking hearing. The purpose of the rulemaking hearing will be to gather public comments on the proposed rule rather than to respond to such comments or to debate the substance of the proposed rule. Department staff may place reasonable time limits on individual comments as necessary for the orderly conduct of the hearing. The hearing will remain open for a reasonable time sufficient to hear such comments as are presented, and for a minimum of 20 minutes even if no commenters are present. All hearings will be recorded and the recording saved in the rulemaking file.
1.09 Petitions for Declaratory Rulings
Pursuant to 3 V.S.A. § 808, an interested person may petition the Commissioner for a declaratory ruling as to the applicability of any statutory provision or of any rule or order of the Commissioner. Any such petition shall be filed with the Commissioner in accordance with Section 1.04(D). The petition shall identify the statute, rule, or order involved, shall state the specific facts to which the statute, rule, or order is sought to be applied and shall be accompanied by a legal brief addressing any issue of law which the petitioner desires the Commissioner to consider. Petitions for declaratory rulings under this section will be considered informally unless good cause is shown for more formal proceedings.
1.10 Petitions to Describe an Existing Practice
Pursuant to 3 V.S.A. § 831(b), an interested person may petition the Commissioner to adopt a procedure describing an existing practice of the Department. Any such petition shall be filed with the Commissioner in accordance with Section 1.04(D). The petition shall be considered informally unless good cause is shown for more formal proceedings.
1.11 Conflict
In the event this rule or any section herein conflicts with Vermont statute, the Vermont statute shall govern.
1.12 Severability
If any provision of this rule or the application thereof to any person or circumstance is for any reason held to be invalid, the remainder of the rule and the application of such provisions to other persons or circumstances shall not be affected thereby.

1.13 Effective Date
This rule is effective on __________.

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