Bill Text: IN SB0099 | 2011 | Regular Session | Introduced
Bill Title: State contractor accountability.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2011-01-13 - Senators Breaux, Broden, Hume, Mrvan, Randolph, Simpson, Skinner, Tallian, Taylor, R. Young and Rogers added as coauthors [SB0099 Detail]
Download: Indiana-2011-SB0099-Introduced.html
Citations Affected: IC 3-9-2.5; IC 4-2-6-10.2; IC 4-13-2.5.
Synopsis: State contractor accountability. Provides that persons who
have contracts with state government or who bid on contracts with state
government and certain persons affiliated with the contractors and
bidders may not make political contributions to an individual who
holds a state office or is a candidate for a state office. Requires persons
who have contracts with state government or who bid on contracts with
state government to register with the department of administration
(department). Requires the department to make the information
provided by registrants available to the agency maintaining the Indiana
transparency portal in a searchable data base on the state's web site.
Requires registrants to notify their affiliated persons that they are
registered. Provides civil penalties for violations. Provides that, for the
violation of a requirement or prohibition, a bidder may be found
nonresponsible and the contract of a contractor may be voided.
Provides that state employees in the executive branch who have
purchasing or procurement authority may not solicit political
contributions unless the soliciting individual is a candidate for public
office.
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Elections.
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.
Chapter 2.5. Prohibition of Contributions by Certain State Contractors
Sec. 1. The definitions in IC 4-13-2.5 apply throughout this chapter.
Sec. 2. The following apply to this chapter:
(1) A person with any ownership interest or distributive share of a business entity of more than seven and one-half percent (7.5%) is an "affiliated person" of the business entity.
(2) An executive employee of a business entity is an "affiliated person" of the business entity.
(3) The spouse of an individual described in subdivision (1) or (2) is an "affiliated person" of the business entity of which the individual described in subdivision (1) or (2) is an affiliated person.
(4) The minor child of an individual described in subdivision (1) or (2) is an "affiliated person" of the business entity of which the individual described in subdivision (1) or (2) is an affiliated person.
(5) A subsidiary of a business entity is an "affiliated person" of the business entity.
(6) A member of the same unitary business group as a business entity is an "affiliated person" of the business entity.
(7) An organization that:
(A) is recognized by the United States Internal Revenue Service as a tax exempt organization described in Section 501(c) of the Internal Revenue Code; and
(B) is established by:
(i) a business entity;
(ii) a person who is an affiliated person of a business entity under subdivision (1), (2), (3), or (4); or
(iii) an entity that is an affiliated person of a business entity under subdivision (5) or (6);
is an "affiliated person" of the business entity.
(8) A political action committee for which:
(A) a business entity is a sponsor; or
(B) an organization that is an affiliated person of a business entity under subdivision (7) is a sponsor;
is an "affiliated person" of the business entity.
Sec. 3. As used in this chapter, "business entity" refers to any of the following doing business for profit:
(1) A sole proprietorship.
(2) A partnership.
(3) A limited liability partnership.
(4) A limited liability company.
(5) A corporation.
(6) Any other person doing business for profit, regardless of the person's legal organization.
Sec. 4. As used in this chapter, "executive employee" refers to any of the following:
(1) The president of a business entity.
(2) The chairman of a business entity.
(3) The chief executive officer of a business entity.
(4) An employee of a business entity:
(A) who has executive decision making authority over the long term and day to day affairs of the business entity; or
(B) whose compensation is determined directly, in whole or
in part, by the awarding of contracts by the state to the
business entity or payment made under contracts awarded
by the state to the business entity.
Sec. 5. As used in this chapter, "registrant" refers to a person
registered under this chapter.
Sec. 6. As used in this chapter, "sponsor" refers to an individual
or organization that contributes at least thirty-three percent (33%)
of the total funding of a political action committee.
Sec. 7. (a) This section applies to the following:
(1) A business entity whose annual aggregate offers for
contracts total more than one hundred thousand dollars
($100,000).
(2) A business entity whose aggregate offers for contracts
combined with the business entity's aggregate annual total
value of contracts exceed one hundred thousand dollars
($100,000).
(3) A business entity whose contracts, in the aggregate,
annually total more than one hundred thousand dollars
($100,000).
(b) A business entity described in subsection (a) shall register
with the department as provided in this chapter.
(c) A business entity making an offer that will cause the business
entity to meet the description set forth in subsection (a)(1) or (a)(2)
shall register with the department before submitting the offer
whose value causes the business entity to meet the description set
forth in subsection (a)(1) or (a)(2).
(d) A business entity that is described in subsection (c) has a
continuing duty to ensure that the registration of the business
entity is accurate during the period that:
(1) begins on the date of registration; and
(2) ends on the day after the date the contract for which the
business entity made the offer is awarded.
If a change makes information reported by the business entity in
registering under this chapter no longer accurate, the change must
be reported to the department under subsection (f)(2) not later
than two (2) business days after the change.
(e) A business entity described in subsection (a)(3) shall
maintain its registration under this chapter and has a continuing
duty to ensure that the registration is accurate for the longer of the
following:
(1) Four (4) years after the date of the award of any contract
awarded to the business entity while the business met the
description set forth in subsection (a)(3).
(2) One (1) year after the expiration or termination of any
contract awarded to the business entity while the business met
the description set forth in subsection (a)(3).
(f) If a change makes information reported by a business entity
in registering under this chapter no longer accurate, the business
entity must report the change to the department:
(1) except as provided in subdivision (2), not later than ten
(10) days after the change; or
(2) if the business entity has a pending offer for a contract, not
later than two (2) business days after the change.
(g) A business entity required to register under this chapter and
to ensure the continuing accuracy of the information reported by
the business entity in registering under this chapter shall notify the
department of:
(1) any change in information relating to an affiliated person
of the business entity; or
(2) any other material change.
Sec. 7.1. (a) This section applies to a business entity that, on July
1, 2011, is described by section 7(a) of this chapter.
(b) A business entity described in subsection (a) shall register as
provided in this chapter not later than September 1, 2011.
(c) This section expires January 1, 2013.
Sec. 8. (a) The registration required under this chapter and any
changes to that registration must be made electronically. The
department may adopt rules under IC 4-22-2 providing for
electronic registration and electronic changes in registration under
this chapter.
(b) The registration of a business entity under this chapter must
contain substantially the following information:
(1) The registrant's name and business address.
(2) The name and address of each of the registrant's affiliated
persons and a description of the affiliation for each affiliated
person.
(c) The individual:
(1) registering for a business entity under this chapter; or
(2) changing the registration of a business entity under this
chapter;
must certify, subject to the penalties for perjury, that, to the best
of the individual's knowledge and belief, the information stated is
true.
(d) The department shall provide a registration certificate to a
person that registers under this chapter.
(e) A registration certificate provided under subsection (d) must
be:
(1) electronic;
(2) accessible to the registrant through the department's web
site; and
(3) protected by a password.
Sec. 9. (a) For purposes of this section, a data base maintained
under this section is "searchable" if the data base can be searched
for the following terms:
(1) Affiliated person.
(2) Registrant.
(3) State agency.
(b) The department shall provide information required under
this chapter to be posted on the Indiana transparency portal to be
kept in a searchable data base containing all information required
to be submitted to the department under this chapter.
(c) The data base must contain links to any searchable data base
of state contracts that is maintained by the state and can be
searched for the term "registrant".
(d) The data base maintained under subsection (b) must be fully
accessible to the election division, as determined by the election
division, the department, and the Indiana transparency portal.
(e) The name of a minor child may not be placed in a location in
the data base maintained under subsection (b) that is accessible to
the public. Public information in the data base relating to a minor
child:
(1) must be designated as relating to a minor child; and
(2) must provide a link to all contributions made by anyone
reporting the same residential address as the minor child.
Sec. 10. A registrant shall provide a copy of the registration
certificate provided by the department under section 8(d) of this
chapter to each affiliated person of the registrant whose identity is
required to be disclosed under this chapter. A registrant shall
provide a copy of the registration certificate to an affiliated person
under this section by first class mail or hand delivery not later than
ten (10) days after the registrant's registration under this chapter.
Sec. 11. (a) At the time a registrant makes a contribution to a
political action committee, the registrant shall inform the political
action committee that the person is registered with the department
under this chapter.
(b) An affiliated person of a registrant shall notify any political
action committee to which the affiliated person makes a
contribution that the affiliated person is an affiliated person of a
registrant under this chapter.
Sec. 12. (a) During the period described in subsection (b):
(1) a registrant who has a contract; and
(2) affiliated persons of the registrant described in subdivision
(1);
shall not make a contribution to an individual who holds a state
office or is a candidate for a state office.
(b) The prohibition on contributions under this section:
(1) begins on the date on which the contract is awarded to the
registrant; and
(2) ends on the later of the following:
(A) Four (4) years after the date on which a contract is
awarded to the registrant.
(B) One (1) year after the date of the expiration or
termination of the contract.
Sec. 13. (a) During the period described in subsection (b):
(1) a registrant who has no contracts but has an offer for a
contract pending; and
(2) affiliated persons of the registrant described in subdivision
(1);
shall not make a contribution to an individual who holds a state
office or is a candidate for a state office.
(b) The prohibition on contributions under this section:
(1) begins on the date of issuance of the solicitation to which
the registrant responded in submitting the offer; and
(2) ends on the day after the date on which the contract for
which the registrant submitted the offer is awarded.
Sec. 14. (a) A candidate or a candidate's committee that receives
a contribution from a person who is prohibited from making a
contribution under section 12 or 13 of this chapter shall pay an
amount equal to the value of the contribution to the election
division not later than thirty (30) days after receiving the
contribution.
(b) The election division shall deposit payments made under this
section in the campaign finance enforcement account established
by IC 3-6-4.1-24.
soliciting individual is the candidate for public office:
(1) An appointing authority.
(2) An employee who has purchasing or procurement
authority on behalf of the agency that employs the employee.
Chapter 2.5. Political Contributions of Offerors and Contractors
Sec. 1. This chapter applies to every:
(1) offer submitted to a state agency; and
(2) contract awarded by a state agency;
after June 30, 2011.
Sec. 2. (a) As used in this chapter, "contract" refers to a contract for:
(1) goods;
(2) services, including professional services;
(3) a public works project; or
(4) a highway project;
awarded by a state agency.
(b) A contract awarded by a state agency under:
(1) IC 4-13.6;
(2) IC 5-22;
(3) IC 5-23;
(4) IC 8-23; or
(5) any other statute;
is considered a contract for purposes of this chapter.
Sec. 3. As used in this chapter, "contract officer" refers to:
(1) an individual who is a purchasing agent under IC 5-22; or
(2) the state officer or employee responsible for awarding a contract.
Sec. 4. As used in this chapter, "contractor" refers to a person who has been awarded a contract with a state agency.
Sec. 5. As used in this chapter, "department" refers to the Indiana department of administration established by IC 4-13-1-2.
Sec. 6. (a) As used in this chapter, "offer" means a response to a solicitation.
(b) The term includes a bid, a proposal, and a quote.
Sec. 7. As used in this chapter, "offeror" means a person who submits an offer to a state agency.
Sec. 8. (a) As used in this chapter, "solicitation" means the procedure by which a state agency invites persons to submit an
offer to enter into a contract with the state agency.
(b) The term includes an invitation for bids, a request for
proposals, and a request for quotes.
Sec. 9. As used in this chapter, "state agency" refers to any of
the following:
(1) A state agency (as defined in IC 4-13-1-1(b)).
(2) An entity that was established by the general assembly as
a body corporate and politic and that is governed by a body,
any of whose members is:
(A) the governor; or
(B) appointed by the governor.
Sec. 10. Every offer submitted to a state agency and every
contract entered into by a state agency must contain the following:
(1) A certification by the offeror or contractor that either:
(A) the offeror or contractor is not required to register
with the department under IC 3-9-2.5; or
(B) the offeror or contractor has registered with the
department under IC 3-9-2.5 and acknowledges a
continuing duty to update the registration.
(2) A statement that the contract is voidable under section 12
or 13 of this chapter for the offeror's or contractor's failure
to comply with this chapter or IC 3-9-2.5.
Sec. 11. (a) A person that:
(1) is required to register with the department under
IC 3-9-2.5; and
(2) submits an offer;
must submit, along with the offer, a copy of the registration
certificate provided to the person by the department under
IC 3-9-2.5-8.
(b) A contracting officer may not accept an offer from a person
described in subsection (a) unless a copy of the person's
registration certificate is submitted with the offer.
Sec. 12. If a person that is required to register with the
department under IC 3-9-2.5 knowingly or intentionally fails to
register with the department under IC 3-9-2.5 or knowingly or
intentionally fails to disclose to the department material
information that the person is required to disclose under
IC 3-9-2.5, in addition to the person being subject to any penalty
under this chapter or IC 3-9-2.5:
(1) the person, with respect to any offer submitted by the
person, is nonresponsible; and
(2) a contract awarded to the person is voidable by the
contract officer if the contract officer considers the voiding of
the contract to be in the best interest of the state.
Sec. 13. (a) This section applies to a contract with a person who
violates IC 3-9-2.5-12 or IC 3-9-2.5-13.
(b) A contract described in subsection (a) is voidable by the
contract officer if the contract officer considers the voiding of the
contract to be in the best interest of the state.
(c) If the person referred to in subsection (a) violates
IC 3-9-2.5-12 or IC 3-9-2.5-13 more than two (2) times:
(1) the contract described in subsection (a) is terminated by
operation of law; and
(2) the person referred to in subsection (a) is considered a
nonresponsible offeror for three (3) years after the date of the
person's latest violation of IC 3-9-2.5-12 or IC 3-9-2.5-13.
