HB 1250-1_ Filed 01/27/2012, 07:00 Battles


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that House Bill 1250 be amended to read as follows:

SOURCE: Page 1, line 1; (12)MO125001.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 3-9-2.5; (12)MO125001.1. -->     "SECTION 1. IC 3-9-2.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]:
     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. As used in this chapter, "affiliated person" refers to any of the following:
        (1) A person with any ownership interest or distributive share of a business entity of more than seven and one-half percent (7.5%).
        (2) An executive employee of a business entity.
        (3) The spouse of an individual described in subdivision (1) or (2).
        (4) The minor child of an individual described in subdivision (1) or (2).
        (5) A subsidiary of a business entity.
        (6) A member of the same unitary business group as a business entity.
        (7) An organization recognized by the United States Internal Revenue Service as a tax exempt organization described in

Section 501(c) of the Internal Revenue Code that is established by:
            (A) a business entity;
            (B) a person described in subdivision (1), (2), (3), or (4); or
            (C) an entity described in subdivision (5) or (6).
        (8) A political action committee for which:
            (A) a business entity; or
            (B) any Section 501(c) organization described in subdivision (7) related to that business entity;
        is a sponsor.
    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 award of, or payment under, contracts with 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 described in subsection (a)(1) or (a)(2) shall register with the department before submitting an offer whose value causes the business entity to fall within the description of subsection (a)(1) or (a)(2).
    (d) A business entity described in subsection (a)(1) or (a)(2) has a continuing duty to ensure that the registration is accurate during the period that:
        (1) begins on the date of registration; and
        (2) ends on the day after the date the contract is awarded.
A change in information must be reported to the department not later than two (2) business days following the change.
    (e) A business entity whose contracts, in the aggregate, annually total more than one hundred thousand dollars ($100,000) shall maintain registration under this chapter and has a continuing duty to ensure that the registration is accurate for:
        (1) four (4) years after the date of the award of the contract; or
        (2) one (1) year after the expiration or termination of the contract;
whichever is longer.
    (f) A change in information must be reported to the department not later than ten (10) days following the change. However, if a business entity required to register under this section has a pending offer, a change in information must be reported to the department not later than two (2) business days after the change.
    (g) A business entity's continuing duty under this chapter to ensure the accuracy of the business entity's registration includes the requirement that the business entity notify the department of any changes in information relating to affiliated persons or any other material changes.
    Sec. 7.1. (a) This section applies to a business entity that on July 1, 2012, 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, 2012.
    (c) This section expires January 1, 2014.
    Sec. 8. (a) The registration required under this chapter and any changes to that registration must be made electronically. The department may provide for the details of electronic registration by a rule adopted under IC 4-22-2 that is not inconsistent with this chapter.
    (b) A registration 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 with a description of the affiliation for each person.
    (c) A registration and any changes to a registration must be

certified, under the penalties for perjury, that, to the best of the person'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 must be:
        (1) electronic;
        (2) accessible to the registrant through the department's Internet web site; and
        (3) protected by a password.
    Sec. 9. (a) For purposes of this section, a data base maintained by the department is "searchable" if the data base can be searched by the following terms:
        (1) Affiliated person.
        (2) Registrant.
        (3) State agency.
    (b) The department shall maintain on its Internet web site 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 maintained by the state, searchable by registrant.
    (d) The data base must be fully accessible to the election division as determined by the election division and the department.
    (e) The name of a minor child may not be placed in a location in the data base that is accessible to the public. Public information relating to a minor child must:
        (1) be designated as relating to a minor child; and
        (2) 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:
        (1) by first class mail or hand delivery;
        (2) not later than ten (10) days after registration; and
        (3) to each affiliated person whose identity is required to be disclosed under this chapter.
    Sec. 11. (a) A registrant shall notify any political action committee to which the registrant makes a contribution, at the time of the contribution, 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 affiliated with a registrant.
    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);
may 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 the award of the contract to the registrant; and
        (2) ends on the later of the following:
            (A) Four (4) years after the date that 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 pending; and
        (2) affiliated persons of the registrant described in subdivision (1);
may 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 that the solicitation is issued; and
        (2) ends on the day after the date the contract 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.

SOURCE: IC 3-9-4-16; (12)MO125001.2. -->     SECTION 2. IC 3-9-4-16, AS AMENDED BY P.L.225-2011, SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 16. (a) In addition to any other penalty imposed, a person who does any of the following is subject to a civil penalty under this section:
        (1) Fails to file with the election division a report in the manner required under IC 3-9-5.
        (2) Fails to file a statement of organization required under IC 3-9-1.
        (3) Is a committee or a member of a committee who disburses or expends money or other property for any political purpose before the money or other property has passed through the hands of the treasurer of the committee.
        (4) Makes a contribution other than to a committee subject to this article or to a person authorized by law or a committee to receive contributions on the committee's behalf.
        (5) Is a corporation or labor organization that exceeds any of the limitations on contributions prescribed by IC 3-9-2-4.
        (6) Makes a contribution in the name of another person.
        (7) Accepts a contribution made by one (1) person in the name of another person.
        (8) Is not the treasurer of a committee subject to this article, and pays any expenses of an election or a caucus except as authorized by this article.
        (9) Commingles the funds of a committee with the personal funds of an officer, a member, or an associate of the committee.
        (10) Wrongfully uses campaign contributions in violation of IC 3-9-3-4.
        (11) Violates IC 3-9-2-12.
        (12) Fails to designate a contribution as required by IC 3-9-2-5(c).
        (13) Violates IC 3-9-3-5.
        (14) Serves as a treasurer of a committee in violation of any of the following:
            (A) IC 3-9-1-13(1).
            (B) IC 3-9-1-13(2).
            (C) IC 3-9-1-18.
        (15) Fails to comply with section 4(d) of this chapter.
        (16) Violates IC 3-9-3-2.5 by making a communication that contains a disclaimer that is not presented in a clear and conspicuous manner required by IC 3-9-3-2.5(d) and IC 3-9-3-2.5(e). This subdivision does not apply to a person whose sole act is, in the normal course of business, participating in the preparation, printing, distribution, or broadcast of the communication containing the disclaimer.
         (17) Violates IC 3-9-2.5.
    (b) This subsection applies to a person who is subject to a civil penalty under subsection (a)(1) or (a)(2) for filing a defective report or statement. If the commission determines that a person failed to file the amended report or statement of organization not later than noon five (5) days after being given notice under section 14 of this chapter, the commission may assess a civil penalty. The penalty is ten dollars ($10) for each day the report is late after the expiration of the five (5) day period, not to exceed one hundred dollars ($100) plus any investigative costs incurred and documented by the election division. The civil penalty limit under this subsection applies to each report separately.
    (c) This subsection applies to a person who is subject to a civil penalty under subsection (a)(1) or (a)(2) for a delinquent report or statement. If the commission determines that a person failed to file the report or statement of organization by the deadline prescribed under this article, the commission shall assess a civil penalty. The penalty is fifty dollars ($50) for each day the report or statement is late, with the afternoon of the final date for filing the report or statement being calculated as the first day. The civil penalty under this subsection may not exceed one thousand dollars ($1,000) plus any investigative costs incurred and documented by the election division. The civil penalty

limit under this subsection applies to each report separately.
    (d) This subsection applies to a person who is subject to a civil penalty under subsection (a)(3), (a)(4), (a)(6), (a)(7), (a)(8), (a)(9), or (a)(10). If the commission determines that a person is subject to a civil penalty under subsection (a), the commission may assess a civil penalty of not more than one thousand dollars ($1,000), plus any investigative costs incurred and documented by the election division.
    (e) This subsection applies to a person who is subject to a civil penalty under subsection (a)(5). If the commission determines that a person is subject to a civil penalty under subsection (a)(5), the commission may assess a civil penalty of not more than three (3) times the amount of the contribution in excess of the limit prescribed by IC 3-9-2-4, plus any investigative costs incurred and documented by the election division.
    (f) This subsection applies to a person who is subject to a civil penalty under subsection (a)(11). If the commission determines that a candidate or the candidate's committee has violated IC 3-9-2-12, the commission shall assess a civil penalty equal to the greater of the following, plus any investigative costs incurred and documented by the election division:
        (1) Two (2) times the amount of any contributions received.
        (2) One thousand dollars ($1,000).
    (g) This subsection applies to a person who is subject to a civil penalty under subsection (a)(12). If the commission determines that a corporation or a labor organization has failed to designate a contribution in violation of IC 3-9-2-5(c), the commission shall assess a civil penalty equal to the greater of the following, plus any investigative costs incurred and documented by the election division:
        (1) Two (2) times the amount of the contributions undesignated.
        (2) One thousand dollars ($1,000).
    (h) This subsection applies to a person who is subject to a civil penalty under subsection (a)(13). If the commission determines, by unanimous vote of the entire membership of the commission, that a person has violated IC 3-9-3-5, the commission may assess a civil penalty of not more than five hundred dollars ($500), plus any investigative costs incurred and documented by the election division.
    (i) This subsection applies to a person who is subject to a civil penalty under subsection (a)(14). If the commission determines, by unanimous vote of the entire membership of the commission, that a person has served as the treasurer of a committee in violation of any of the statutes listed in subsection (a)(14), the commission may assess a civil penalty of not more than five hundred dollars ($500), plus any investigative costs incurred and documented by the election division.
    (j) This subsection applies to a person who is subject to a civil penalty under subsection (a)(15). The commission may assess a civil penalty equal to the costs incurred by the election division for the

manual entry of the data contained in the report or statement, plus any investigative costs incurred and documented by the election division.
    (k) This subsection applies to a person who is subject to a civil penalty under subsection (a)(16). If the commission determines that a person is subject to a civil penalty under subsection (a)(16), the commission may assess a civil penalty of not more than one thousand dollars ($1,000) for each communication circulated or published (but not for each of the copies of the communication actually circulated or published), plus any investigative costs incurred and documented by the election division.
     (l) This subsection applies to a person who is subject to a civil penalty under subsection (a)(17). The commission may assess a civil penalty of not more than:
        (1) one thousand dollars ($1,000) for each business day that a person knowingly or intentionally:
            (A) fails to update a registration required by IC 3-9-2.5;
            (B) fails to provide material information on a registration required by IC 3-9-2.5; or
            (C) states false information on a registration required by IC 3-9-2.5; or
        (2) one thousand dollars ($1,000) for any other violation of IC 3-9-2.5;
plus any investigative costs incurred and documented by the election division.

    (l) (m) All civil penalties collected under this section shall be deposited with the treasurer of state in the campaign finance enforcement account.
    (m) (n) Proceedings of the commission under this section are subject to IC 4-21.5.

SOURCE: IC 3-14-1-17; (12)MO125001.3. -->     SECTION 3. IC 3-14-1-17 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 17. A person who recklessly, knowingly, or intentionally makes a contribution in violation of IC 3-9-2.5 commits a Class B misdemeanor.
SOURCE: IC 4-2-6-11; (12)MO125001.4. -->     SECTION 4. IC 4-2-6-11, AS AMENDED BY P.L.1-2007, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 11. (a) As used in this section, "administrative law judge" has the meaning set forth in IC 4-21.5-1-2.
    (b)
As used in this section, "particular matter" means:
        (1) an application;
        (2) a business transaction;
        (3) a claim;
        (4) a contract;
        (5) a determination;
        (6) an enforcement proceeding;
        (7) an investigation;
        (8) a judicial proceeding;
        (9) a lawsuit;
        (10) a license;
        (11) an economic development project; or
        (12) a public works project.
The term does not include the proposal or consideration of a legislative matter or the proposal, consideration, adoption, or implementation of a rule or an administrative policy or practice of general application.
     (c) As used in this section, "ultimate authority" has the meaning set forth in IC 4-21.5-1-15.
    (b) (d) This subsection applies only to a person who served as a state officer, employee, or special state appointee after January 10, 2005. A former state officer, employee, or special state appointee may not accept employment or receive compensation before the elapse of at least three hundred sixty-five (365) days after the date on which the former state officer, employee, or special state appointee ceases to be a state officer, employee, or special state appointee, under any of the following circumstances:
        (1) As a lobbyist.
        (2) From an employer if the former state officer, employee, or special state appointee was:
            (A) engaged in the negotiation or the administration of one (1) or more contracts with that employer on behalf of the state or an agency; and
            (B) in a position to make a discretionary decision affecting the:
                (i) outcome of the negotiation; or
                (ii) nature of the administration. or
        (3) From an employer if the former state officer, employee, or special state appointee made a regulatory or licensing decision that directly applied to served as:
            (A) the ultimate authority of;
            (B) a member of a panel that is or was the ultimate authority of; or
            (C) an administrative law judge employed by;
        an agency that has or had regulatory or licensing authority over
the employer or to a parent or subsidiary of the employer.
before the elapse of at least three hundred sixty-five (365) days after the date on which the former state officer, employee, or special state appointee ceases to be a state officer, employee, or special state appointee.
    (c) (e) A former state officer, employee, or special state appointee may not represent or assist a person in a particular matter involving the state if the former state officer, employee, or special state appointee personally and substantially participated in the matter as a state officer, employee, or special state appointee, even if the former state officer, employee, or special state appointee receives no compensation for the

representation or assistance.
    (d) (f) A former state officer, employee, or special state appointee may not accept employment or compensation from an employer if the circumstances surrounding the employment or compensation would lead a reasonable person to believe that:
        (1) employment; or
        (2) compensation;
is given or had been offered for the purpose of influencing the former state officer, employee, or special state appointee in the performance of his or her duties or responsibilities while a state officer, an employee, or a special state appointee.
    (e) (g) A written advisory opinion issued by the commission certifying that:
        (1) employment of;
        (2) representation by; or
        (3) assistance from;
the former state officer, employee, or special state appointee does not violate this section is conclusive proof that a former state officer, employee, or special state appointee is not in violation of this section.
    (f) (h) Subsection (b) (d) does not apply to a special state appointee who serves only as a member of an advisory body.
    (g) (i) An employee's or a special state appointee's state officer or appointing authority may waive application of subsection (b) (d) or (c) (e) in individual cases when consistent with the public interest. Waivers must be in writing and filed with the commission. The inspector general may adopt rules under IC 4-22-2 to establish criteria for post employment waivers.

SOURCE: IC 4-13-2.5; (12)MO125001.5. -->     SECTION 5. IC 4-13-2.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]:
     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, 2012.
    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 the:
        (1) purchasing agent under IC 5-22; or
        (2) 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, proposal, and 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 established by the general assembly as a body corporate and politic that is governed by a body that has a member who is:
            (A) the governor; or
            (B) appointed by the governor.
    Sec. 10. Every offer submitted to, and 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 copy of an offeror's registration certificate must accompany an offer by a person required to register under this chapter.
    (b) A contracting officer may not accept an offer unless the offeror's registration certificate is submitted with the offer.
    Sec. 12. In addition to any penalty under this chapter or

IC 3-9-2.5, the knowing or intentional failure to disclose material information required for registration renders:
        (1) the offeror nonresponsible; or
        (2) a contract voidable by the contract officer if the contract officer considers it 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 it to be in the best interest of the state.
    (c) A contract described in subsection (a) is terminated by operation of law if the affected person violates IC 3-9-2.5-12 or IC 3-9-2.5-13 more than two (2) times. The affected person is also considered a nonresponsible offeror for three (3) years after the date of the most recent violation.
".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1250 as printed January 25, 2012.)

________________________________________

Representative Battles


MO125001/DI 75     2012