Bill Text: IN HB1322 | 2010 | Regular Session | Introduced
Bill Title: State and local government ethics.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-13 - First reading: referred to Committee on Government and Regulatory Reform [HB1322 Detail]
Download: Indiana-2010-HB1322-Introduced.html
Citations Affected: IC 3-8; IC 4-2-6; IC 36-1-20.
Synopsis: State and local government ethics. Reduces from $100 to
$50 the minimum reportable amount for gifts made to state officers,
employees, and special appointees on their financial disclosure
statements. Requires these financial disclosure statements to be
published on the state's Internet web site. Provides that a state
employee or a special state appointee may not be required to make a
political contribution, solicit political contributions, or participate in
any other political activity. Provides that a state officer, employee, or
a special state appointee may not solicit a political contribution or
engage in any other political activity in a facility owned or leased by
the state. Requires local officers, candidates for local offices,
employees of political subdivisions, and local special appointees to file
statements of economic interests that include a report of gifts given by
vendors. Requires persons who make offers for contracts with political
subdivisions to register with the county and to file certain reports.
Requires registration and reports to be published on the county's
Internet web site. Provides that an employee of a political subdivision
or an appointee of a political subdivision may not be required to make
a political contribution, solicit political contributions, or participate in
any other political activity. Provides that a local officer, employee, or
appointee may not solicit a political contribution or engage in any other
political activity in a facility owned or leased by the political
subdivision. Authorizes the state board of accounts to impose certain
civil penalties for violations of the local ethics statute. Makes technical
amendments.
Effective: July 1, 2010.
January 13, 2010, read first time and referred to Committee on Government and Regulatory
Reform.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
(b) Whenever a candidate for any of the following offices is also required to file a declaration of candidacy or is nominated by petition, the candidate shall file a statement of economic interests before filing the declaration of candidacy or declaration of intent to be a write-in candidate, before the petition of nomination is filed, before the certificate of nomination is filed, or before being appointed to fill a candidate vacancy under IC 3-13-1 or IC 3-13-2:
(1) Governor, lieutenant governor, secretary of state, auditor of state, treasurer of state, attorney general, and state superintendent of public instruction, in accordance with IC 4-2-6-8.
(2) Senator and representative in the general assembly, in accordance with IC 2-2.1-3-2.
(3) Justice of the supreme court, judge of the court of appeals,
judge of the tax court, judge of a circuit court, judge of a superior
court, judge of a county court, judge of a probate court, and
prosecuting attorney, in accordance with IC 33-23-11-14 and
IC 33-23-11-15.
(4) A candidate for local office or school board office, in
accordance with IC 36-1-20-9, except a candidate for a local
office described in subdivision (3).
(b) A declaration is not valid unless filed in the office of the election division or circuit court clerk by noon on the seventy-fourth day before a primary election.
(c) This subsection applies to a candidate required to file a statement of economic
(1) copy of the statement, file stamped by the office required to receive the statement of economic interests; or
(2) receipt showing that the statement has been filed;
before the election division accepts the declaration for filing. The election division shall reject a filing that does not comply with this subsection.
(d) This subsection applies to a candidate for a local office or school board office required to file a statement of economic interests under IC 36-1-20-9. The circuit court clerk shall reject a declaration of candidacy if the candidate has not filed a statement of economic interests.
(1) The governor, lieutenant governor, secretary of state, auditor of state, treasurer of state, attorney general, and state superintendent of public instruction.
(2) Any candidate for one (1) of the offices in subdivision (1) who
is not the holder of one (1) of those offices.
(3) Any person who is the appointing authority of an agency.
(4) The director of each division of the department of
administration.
(5) Any purchasing agent within the procurement division of the
department of administration.
(6) Any agency employee, special state appointee, former agency
employee, or former special state appointee with final purchasing
authority.
(7) An employee required to do so by rule adopted by the
inspector general.
(b) The statement shall be filed with the inspector general as
follows:
(1) Not later than February 1 of every year, in the case of the state
officers and employees enumerated in subsection (a).
(2) If the individual has not previously filed under subdivision (1)
during the present calendar year and is filing as a candidate for a
state office listed in subsection (a)(1), before filing a declaration
of candidacy under IC 3-8-2 or IC 3-8-4-11, petition of
nomination under IC 3-8-6, or declaration of intent to be a
write-in candidate under IC 3-8-2-2.5, or before a certificate of
nomination is filed under IC 3-8-7-8, in the case of a candidate for
one (1) of the state offices (unless the statement has already been
filed when required under IC 3-8-4-11).
(3) Not later than sixty (60) days after employment or taking
office, unless the previous employment or office required the
filing of a statement under this section.
(4) Not later than thirty (30) days after leaving employment or
office, unless the subsequent employment or office requires the
filing of a statement under this section.
The statement must be made under affirmation.
(c) The statement shall set forth the following information for the
preceding calendar year or, in the case of a state officer or employee
who leaves office or employment, the period since a previous statement
was filed:
(1) The name and address of any person known:
(A) to have a business relationship with the agency of the state
officer or employee or the office sought by the candidate; and
(B) from whom the state officer, candidate, or the employee,
or that individual's spouse or unemancipated children received
a gift or gifts having a total fair market value in excess of one
hundred fifty dollars ($100). ($50).
(2) The location of all real property in which the state officer, candidate, or the employee or that individual's spouse or unemancipated children has an equitable or legal interest either amounting to five thousand dollars ($5,000) or more or comprising ten percent (10%) of the state officer's, candidate's, or the employee's net worth or the net worth of that individual's spouse or unemancipated children. An individual's primary personal residence need not be listed, unless it also serves as income property.
(3) The names and the nature of the business of the employers of the state officer, candidate, or the employee and that individual's spouse.
(4) The following information about any sole proprietorship owned or professional practice operated by the state officer, candidate, or the employee or that individual's spouse:
(A) The name of the sole proprietorship or professional practice.
(B) The nature of the business.
(C) Whether any clients are known to have had a business relationship with the agency of the state officer or employee or the office sought by the candidate.
(D) The name of any client or customer from whom the state officer, candidate, employee, or that individual's spouse received more than thirty-three percent (33%) of the state officer's, candidate's, employee's, or that individual's spouse's nonstate income in a year.
(5) The name of any partnership of which the state officer, candidate, or the employee or that individual's spouse is a member and the nature of the partnership's business.
(6) The name of any corporation (other than a church) of which the state officer, candidate, or the employee or that individual's spouse is an officer or a director and the nature of the corporation's business.
(7) The name of any corporation in which the state officer, candidate, or the employee or that individual's spouse or unemancipated children own stock or stock options having a fair market value in excess of ten thousand dollars ($10,000). However, if the stock is held in a blind trust, the name of the administrator of the trust must be disclosed on the statement instead of the name of the corporation. A time or demand deposit in a financial institution or insurance policy need not be listed.
(8) The name and address of the most recent former employer.
(9) Additional information that the person making the disclosure chooses to include.
Any such state officer, candidate, or employee may file an amended statement upon discovery of additional information required to be reported.
(d) A person who:
(1) fails to file a statement required by rule or this section in a timely manner; or
(2) files a deficient statement;
upon a majority vote of the commission, is subject to a civil penalty at a rate of not more than ten dollars ($10) for each day the statement remains delinquent or deficient. The maximum penalty under this subsection is one thousand dollars ($1,000).
(e) A person who intentionally or knowingly files a false statement commits a Class A infraction.
(f) The commission shall provide for the publication of financial disclosure statements filed under this section on the state's Internet web site.
(1) Make a political contribution.
(2) Solicit contributions on behalf of a candidate for public office.
(3) Participate in any other political activity.
(b) This section does not prohibit an employee or special state appointee from voluntarily doing any of the activities described in subsection (a) unless the activity interferes with the employee's or special state appointee's performance or job responsibilities.
(c) A state officer, an employee, or a special state appointee may not solicit a contribution or engage in any other political activity in a facility owned or leased by the state.
Chapter 20. Local Government Officer and Employee Ethics
Sec. 1. As used in this chapter, "agency" refers to an authority, a board, a branch, a bureau, a commission, a committee, a council, a department, a division, an office, a service, or other instrumentality of a political subdivision. The term includes a body corporate and politic set up as an instrumentality of a political
subdivision and a private, nonprofit, government related
corporation.
Sec. 2. As used in this chapter, "clerk" refers to the following:
(1) Except as provided in subdivision (2), the circuit court
clerk of the county of a political subdivision that contains the
greatest percentage of population of the political subdivision.
(2) An agency other than the circuit court clerk designated by
an ordinance adopted by the county legislative body to
perform the functions of the clerk under this chapter.
Sec. 3. As used in this chapter, "employee" refers to an
individual, other than a local officer, who is employed by a political
subdivision on a full-time, a part-time, a temporary, an
intermittent, or an hourly basis. The term includes an individual
who contracts with a political subdivision for personal services.
Sec. 4. As used in this chapter, "filer" refers to an individual
who files a statement under section 9 of this chapter.
Sec. 5. (a) As used in this chapter, "local officer" refers to an
individual who holds:
(1) a local office (as defined in IC 3-5-2-29); or
(2) a school board office (as defined in IC 3-5-2-45).
(b) The term does not include any of the following:
(1) A judge of a circuit court.
(2) A judge of a superior court.
(3) A judge of a county court.
(4) A judge of a probate court.
(5) A prosecuting attorney.
Sec. 6. As used in this chapter, "special appointee" refers to an
individual who is:
(1) not a local officer or employee; and
(2) appointed to an authority, a board, a commission, a
committee, a council, a task force, or other body designated
by any name that:
(A) is authorized by statute, ordinance, or executive order;
and
(B) functions in a policy or an advisory role for a political
subdivision.
Sec. 7. As used in this chapter, "statement" refers to a statement
of financial interests required by section 9 of this chapter.
Sec. 8. (a) All civil penalties paid under this chapter shall be
deposited in the general fund of the political subdivision of the local
officer, employee, special appointee, candidate, or offeror whose
action is the basis for the civil penalty imposed under this chapter.
(b) All fees paid under section 10 of this chapter shall be deposited in the general fund of the county.
Sec. 9. (a) The following shall file a written statement of financial interests:
(1) A local officer.
(2) A candidate for a local office or a school board office. A candidate for a local office described in section 5(b) of this chapter is not required to file a statement under this section.
(3) An individual who is the head of an agency.
(4) An employee who is a purchasing agent for a political subdivision.
(5) A special appointee.
(b) A statement shall be filed with the clerk as follows:
(1) Not later than February 1 of every year, in the case of the local officers, employees, and special appointees described in subsection (a).
(2) If an individual has not previously filed under subdivision (1) during the current calendar year and is filing as a candidate for a local office or a school board office described in subsection (a)(2), before filing a declaration of candidacy under IC 3-8-2, petition of nomination under IC 3-8-6, or declaration of intent to be a write-in candidate under IC 3-8-2-2.5, or before a certificate of nomination is filed under IC 3-8-5.
(3) Not later than sixty (60) days after beginning employment or taking office, unless the previous employment or office required the filing of a statement under this section.
(4) Not later than thirty (30) days after leaving employment or office, unless the subsequent employment or office requires the filing of a statement under this section.
(c) A statement must be made under affirmation.
(d) The statement must set forth the following information for the preceding calendar year or, in the case of a local officer, employee, or special appointee who leaves office or employment, the period since the most recent statement was filed:
(1) The name and address of any person:
(A) who is an offeror with:
(i) the agency of the local officer, employee, or special appointee; or
(ii) the office sought by the candidate; and
(B) from whom the local officer, employee, special appointee, candidate, or that individual's spouse or
unemancipated children received a gift or gifts having a
total fair market value of more than fifty dollars ($50).
(2) The location of all real property in which the local officer,
employee, special appointee, candidate, or that individual's
spouse or unemancipated children has an equitable or legal
interest either amounting to five thousand dollars ($5,000) or
more or comprising ten percent (10%) of the local officer's,
employee's, special appointee's, or candidate's net worth or
the net worth of that individual's spouse or unemancipated
children. An individual's primary personal residence need not
be listed, unless it also serves as income property.
(3) The names and the nature of the business of the employers
of the local officer, employee, special appointee, or candidate
and that individual's spouse.
(4) The following information about any sole proprietorship
owned or professional practice operated by the local officer,
employee, special appointee, candidate, or that individual's
spouse:
(A) The name of the sole proprietorship or professional
practice.
(B) The nature of the business.
(C) Whether any clients are known to have made offers
with:
(i) the agency of the local officer, employee, special
appointee; or
(ii) the office sought by the candidate.
(D) The name of any client or customer from whom the
local officer, employee, special appointee, candidate, or
that individual's spouse received more than thirty-three
percent (33%) of the local officer's, employee's, special
appointee's, candidate's, or that individual's spouse's
nongovernmental income in a year.
(5) The name of any partnership of which the local officer,
employee, special appointee, candidate, or that individual's
spouse is a member and the nature of the partnership's
business.
(6) The name of any corporation (other than a church) of
which the local officer, employee, special appointee,
candidate, or that individual's spouse is an officer or a
director and the nature of the corporation's business.
(7) The name of any corporation in which the local officer,
employee, special appointee, candidate, or that individual's
spouse or unemancipated children own stock or stock options
having a fair market value exceeding ten thousand dollars
($10,000). However, if the stock is held in a blind trust, the
name of the administrator of the trust must be disclosed on
the statement instead of the name of the corporation. A time
or demand deposit in a financial institution or insurance
policy need not be listed.
(8) The name and address of the local officer's, employee's, or
special appointee's most recent former employer.
(9) Additional information that the person making the
disclosure chooses to include.
(e) A local officer, employee, special appointee, or candidate
may file an amended statement upon discovery of additional
information required to be reported.
(f) The state board of accounts may impose a civil penalty on an
individual who:
(1) fails to file a statement required by this section in a timely
manner; or
(2) files a deficient statement under this section.
The civil penalty is ten dollars ($10) for each day the statement
remains delinquent or deficient. The maximum penalty under this
subsection is one thousand dollars ($1,000).
(g) A person who intentionally or knowingly files a false
statement commits a Class A infraction.
(h) The state board of accounts shall prescribe the form of the
statement.
(i) The county shall publish all statements filed with the clerk
under this section on the county's Internet web site.
Sec. 10. (a) The definitions in IC 5-22-2 apply in this section.
(b) An offeror must register with the clerk not later than five (5)
days after submitting an offer to a political subdivision. Subject to
subdivision (2) and subsections (d) through (f), an offeror is
required to register only once in a county. The offeror shall pay the
following registration fees:
(1) The first time an offeror registers or if an offeror
reregisters, a fee of one hundred dollars ($100). The fee must
be paid at the time the offeror registers or reregisters.
(2) A fee of fifty dollars ($50) before January 1 of each year
that the offeror wishes to maintain the offeror's registration
with the county. If an offeror fails to pay the registration fee
as required under this subdivision, the offeror's registration
is considered canceled and the offeror must register as a new
offeror under subdivision (1) if the offeror wants to continue
making offers to political subdivisions in the county.
(c) An offeror's initial registration under this section must
include the following information:
(1) The offeror's name.
(2) The offeror's address.
(3) The following information about an individual who is
authorized to conduct business for the offeror in Indiana:
(A) The individual's name.
(B) The individual's address.
(C) The individual's telephone number.
(D) The individual's electronic mail address, if any.
(d) Each time an offeror makes an offer to a political
subdivision in the county, the offeror must supplement the offeror's
registration with the following information:
(1) The name of the political subdivision to which the offeror
has made an offer.
(2) The general subject matter of the contract for which the
offer was made.
(e) An offeror shall keep the information required by
subsections (c) and (d) current.
(f) The offeror must file a report of each gift that:
(1) has a fair market value of more than fifty dollars ($50);
and
(2) the offeror made to a local officer, employee, or special
appointee of a political subdivision located in the county or
the individual's spouse or unemancipated children.
(g) A report required by subsection (f) must contain the
following information for each gift required to be reported under
subsection (f):
(1) The name of the local officer, employee, or special
appointee to whom the gift was made.
(2) A general description of the gift.
(3) The fair market value of the gift.
(h) An offeror must file a report under subsection (f) at the
following times:
(1) Not later than July 15 of each year. The report under this
subdivision must cover reportable gifts made during the
period of January 1 through June 30.
(2) Not later than January 15 of each year. The report under
this subdivision must cover:
(A) reportable gifts made during the period of July 1
through December 31 of the previous year; and
(B) the total of all reportable gifts made during the
previous calendar year.
(i) The clerk shall publish the information required by this
section on the county's Internet web site.
(j) The state board of accounts may impose a civil penalty on an
offeror who does any of the following:
(1) Fails to register as required by this section in a timely
manner.
(2) Fails to supplement the offeror's registration as required
by this section in a timely manner.
The civil penalty under this subsection is ten dollars ($10) for each
day a registration or supplement to a registration remains
delinquent.
Sec. 11. (a) An employee or special appointee may not be
required to do any of the following:
(1) Make a political contribution.
(2) Solicit contributions on behalf of a candidate for public
office.
(3) Participate in any other political activity.
(b) This section does not prohibit an employee or special
appointee from voluntarily doing any of the activities described in
subsection (a) unless the activity interferes with the employee's or
special appointee's performance or job responsibilities.
(c) A local officer, an employee, or a special appointee may not
solicit a political contribution or engage in any other political
activity in a facility owned or leased by the local officer's,
employee's, or special appointee's political subdivision.
(d) If the state board of accounts finds that a person has violated
this section, the state board of accounts may take any of the
following actions:
(1) Impose a civil penalty upon the person not to exceed three
(3) times the value of any benefit received from the violation.
(2) Order restitution or disgorgement.
(3) Reprimand, suspend, or terminate an employee or a
special appointee.
(4) Reprimand or recommend the impeachment of a local
officer.
(5) Bar a person from future employment with the political
subdivision as an employee or future appointment as a special
appointee of the political subdivision.
