Introduced Version






HOUSE BILL No. 1353

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 2-2.1-3; IC 2-7; IC 3-5-2-15; IC 3-9-5-14; IC 4-2-6; IC 5-14-7; IC 5-22.5; IC 35-51-5-1.

Synopsis: Limitation on lobbyist expenditures. Provides that a person who has a business relationship with a governmental body may not give a gift to an employee of that governmental body or to an elected official that serves that governmental body. Defines "business relationship" as seeking or having a contract with a governmental body or being an executive or legislative branch lobbyist with the state. Provides exceptions for nominal gifts, gifts given between close relatives, and gifts given by a political action committee to an elected official. Provides that a violation of the prohibition is a Class A misdemeanor. Makes conforming amendments to various statutes.

Effective: January 1, 2013.





Candelaria Reardon




    January 11, 2012, read first time and referred to Committee on Rules and Legislative Procedures.







Introduced

Second Regular Session 117th General Assembly (2012)


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 this style type.
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 this style type reconciles conflicts between statutes enacted by the 2011 Regular Session of the General Assembly.

HOUSE BILL No. 1353



    A BILL FOR AN ACT to amend the Indiana Code concerning state and local administration.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 2-2.1-3-1; (12)IN1353.1.1. -->     SECTION 1. IC 2-2.1-3-1, AS AMENDED BY P.L.2-2007, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 1. As used in (a) The following terms apply throughout this chapter, and unless the context clearly denotes otherwise:
        (a) (1) "Close relative" means a person related to the person filing the statement or to his spouse as a son, daughter, grandson, granddaughter, great-grandson, great-granddaughter, father, mother, grandfather, grandmother, great-grandfather, great-grandmother, brother, sister, nephew, niece, uncle, or aunt. Relatives by adoption, half-blood, marriage, or remarriage shall be treated as relatives of whole kinship.
        (b) (2) "Committee" means the house legislative ethics committee, or the senate legislative ethics committee, or both of them.
        (c) (3) "Compensation" means any money, thing of value, or economic benefit conferred on, or received by, any person in

return for services rendered, or for services to be rendered, whether by that person or another.
    (d) "Contribution" means any advance, conveyance, deposit, distribution, transfer of funds, loan, payment, gift, pledge, or subscription of money or anything of value, and any contract, agreement, promise, or other obligation, whether or not legally enforceable, to make a contribution in support of any candidate for the house of representatives or senate. The term "contribution" does not include services by speakers, writers, publishers, or others for which no compensation is asked or given.
        (e) (4) "Employer" means any person or entity from whom the member of or candidate for the general assembly or his the member's or candidate's spouse received more than thirty-three percent (33%) of his the member's or candidate's nonlegislative income.
    (f) "Family business" means a corporation in which the member of or candidate for the general assembly and his spouse own at least eighty percent (80%) of the voting stock, regardless of whether all or a portion is owned jointly or severally.
         (5) "Gift" has the meaning set forth in IC 5-22.5-1-5.
        (g) (6) "House" means the Indiana house of representatives.
        (h) (7) "Information of a confidential nature" means information obtained by reason of the position or office held and which information has not been, or will not be, communicated to the general public.
        (i) (8) "Legislative matter" means any bill, resolution, or other issue or proposal presented in, or considered by, the house or senate or any committee or subcommittee thereof.
        (j) (9) "Lobbyist" means any person, firm, corporation, limited liability company, or association registered under IC 2-7-2.
        (k) (10) "Person or entity" means any individual, proprietorship, limited liability company, partnership, unincorporated association, trust, business trust, group, or corporation, whether or not operated for profit, or a governmental agency or political subdivision.
        (l) (11) "Senate" means the Indiana senate.
        (m) (12) "State agency" means any department, commission, council, board, bureau, division, service, office, officer, administration, or other establishment in the executive or administrative branch of state government. The term "state agency" does not include state educational institutions or the agencies of any municipality or political subdivision of the state.


    (n) (b) The masculine gender includes the masculine and feminine.
    (o) (c) The singular form of any noun includes the plural wherever appropriate.
SOURCE: IC 2-2.1-3-12; (12)IN1353.1.2. -->     SECTION 2. IC 2-2.1-3-12, AS AMENDED BY P.L.58-2010, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 12. The following constitute disorderly behavior and may be punished by the house of representatives or senate as provided in Article 4, Section 14 of the Constitution of the State of Indiana:
        (1) Willful failure to file a required statement by the deadline prescribed in this chapter or knowingly filing a false statement.
        (2) Knowing violation of section 9, 9.5, or 10, or 13 of this chapter.
SOURCE: IC 2-2.1-3-13; (12)IN1353.1.3. -->     SECTION 3. IC 2-2.1-3-13 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 13. (a) The definitions in IC 2-7-1 apply in this section.
    (b) IC 5-22.5-3 applies to the receipt of gifts from a lobbyist by a legislative person.
    (c) A legislative person who knowingly or intentionally accepts a gift or entertainment in violation of IC 5-22.5-3 is subject to the following, in addition to any penalties imposed under IC 5-22.5-3:
        (1) Section 12 of this chapter if the legislative person is a member of the general assembly.
        (2) If the legislative person is not a member of the general assembly, discipline according to the rules of the house of representatives, the senate, or agency of the legislative branch applicable to the legislative person.

SOURCE: IC 2-7-1-4; (12)IN1353.1.4. -->     SECTION 4. IC 2-7-1-4, AS AMENDED BY P.L.58-2010, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 4. (a) "Gift" means the voluntary transfer of anything of value without consideration. has the meaning set forth in IC 5-22.5-1-5.
    (b) The term does not include a contribution (as defined in IC 3-5-2-15).
SOURCE: IC 2-7-3-3; (12)IN1353.1.5. -->     SECTION 5. IC 2-7-3-3, AS AMENDED BY P.L.225-2011, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 3. (a) The activity reports of each lobbyist shall include the following information:
        (1) A complete and current statement of the information required to be supplied under IC 2-7-2-3 and IC 2-7-2-4.
        (2) Total expenditures on lobbying (prorated, if necessary) broken

down to include at least the following categories:
            (A) Compensation to others who perform lobbying services.
            (B) Reimbursement to others who perform lobbying services.
            (C) Receptions.
            (D) Entertainment, including meals.
            (E) Gifts made to a legislative person.
        (3) Subject to section 3.5 of this chapter, a statement of each:
            (A) expenditure for entertainment (including meals and drink); or
            (B) gift;
        that equals fifty dollars ($50) or more in one (1) day, or expenditures for entertainment (including meals and drink) or gifts that together total more than two hundred fifty dollars ($250) during the reporting year, if the expenditures and gifts are made by the lobbyist or the lobbyist's agent to benefit a specific legislative person.
        (4) (3) A list of the general subject matter of each bill or resolution concerning which a lobbying effort was made within the registration period.
        (5) (4) The name of each member of the general assembly from whom the lobbyist has received an affidavit required under IC 2-2.1-3-3.5.
    (b) In the second semiannual report, when total amounts are required to be reported, totals shall be stated both for the period covered by the statement and for the entire reporting year.
    (c) An amount reported under this section is not required to include the following:
        (1) Overhead costs.
        (2) Charges for any of the following:
            (A) Postage.
            (B) Express mail service.
            (C) Stationery.
            (D) Facsimile transmissions.
            (E) Telephone calls.
        (3) Expenditures for the personal services of clerical and other support staff persons who are not lobbyists.
        (4) Expenditures for leasing or renting an office.
        (5) Expenditures for lodging, meals, and other personal expenses of the lobbyist.
    (d) A report of an expenditure under subsection (a)(3) must state the following information:
        (1) The name of the lobbyist making the expenditure.


        (2) A description of the expenditure.
        (3) The amount of the expenditure.
SOURCE: IC 2-7-3-3.3; (12)IN1353.1.6. -->     SECTION 6. IC 2-7-3-3.3 IS REPEALED [EFFECTIVE JANUARY 1, 2013]. Sec. 3.3. (a) This section does not apply to gifts made between close relatives.
    (b) A lobbyist shall file a written report whenever the lobbyist makes a gift with respect to a legislative person that is required to be included in a report under section 3(a)(3) of this chapter.
    (c) A report under this section must state the following:
        (1) The name of the lobbyist making the gift.
        (2) A description of the gift.
        (3) The amount of the gift.
    (d) A lobbyist shall file a copy of a report required by this section with all the following:
        (1) The commission.
        (2) The legislative person to whom the report is made.
        (3) The principal clerk of the house of representatives, if the legislative person is a member of, or a candidate for election to, the house of representatives.
        (4) The secretary of the senate, if the legislative person is a member of, or candidate for election to, the senate.
    (e) A lobbyist shall file a report required by this section not later than fifteen (15) business days after making the gift. A report filed under this section is confidential and is not available for public inspection or copying until ten (10) business days after the report is filed with the commission.
    (f) Not later than January 7 each year, the commission shall provide to each member and candidate a written compilation of all reports filed under subsection (d) relating to that member or candidate. The compilation must provide the following information to the member or candidate for each gift reported under subsection (d):
        (1) A description of the gift.
        (2) The amount of the gift.
        (3) The name of the lobbyist making the gift.
SOURCE: IC 2-7-3-3.5; (12)IN1353.1.7. -->     SECTION 7. IC 2-7-3-3.5, AS ADDED BY P.L.58-2010, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 3.5. (a) If an expenditure for entertainment (including meals and drink) or a gift can clearly and reasonably be attributed to a particular legislative person, the expenditure must be reported with respect to that particular legislative person.
    (b) A report of an expenditure with respect to a particular legislative person:
        (1) must report actual amounts; and
        (2) may not allocate to the particular legislative person a prorated amount derived from an expense made with respect to several legislative persons;
to the extent practicable.
    (c) (a) An activity report must report expenditures for a function or activity to which all the members of a legislative body are invited. Expenditures reported for a function or activity described in this subsection may not be allocated and reported with respect to a particular legislative person.
    (d) (b) If two (2) or more lobbyists contribute to an expenditure, each lobbyist shall report the actual amount the lobbyist contributed to the expenditure. For purposes of reporting such an expenditure, the following apply:
        (1) For purposes of determining whether the expenditure is reportable, the total amount of the expenditure with respect to a particular legislative person must be determined and not the amount that each lobbyist contributed to that expenditure.
        (2) Each lobbyist shall report the actual amount the lobbyist contributed to the expenditure, even if that amount would not have been reportable under this section if only one (1) lobbyist made an expenditure of that amount.
    (e) The report of an expenditure with respect to a particular legislative person may not include any amount that the particular legislative person contributed to the expenditure.
    (f) An activity report may not report expenditures or gifts relating to property or services received by a legislative person if the legislative person paid for the property or services the amount that would be charged to any purchaser of the property or services in the ordinary course of business.
    (g) An activity report may not report expenditures or gifts made between close relatives unless the expenditure or gift is made in connection with a legislative action.
    (h) An activity report may not report expenditures or gifts relating to the performance of a legislative person's official duties, including the legislative person's service as a member of any of the following:
        (1) The legislative council.
        (2) The budget committee.
        (3) A standing or other committee established by the rules of the house of representatives or the senate.
        (4) A study committee established by statute or by the legislative council.
        (5) A statutory board or commission.
    (i) (c) An activity report may not report a contribution (as defined in IC 3-5-2-15).
SOURCE: IC 2-7-5-8; (12)IN1353.1.8. -->     SECTION 8. IC 2-7-5-8 IS REPEALED [EFFECTIVE JANUARY 1, 2013]. Sec. 8. (a) This section does not apply to gifts made between close relatives.
    (b) A lobbyist may not make a gift with a value of fifty dollars ($50) or more to a legislative person unless the lobbyist receives the consent of the legislative person before the gift is made. The lobbyist must inform the particular legislative person of the cost of the gift at the time the lobbyist seeks the consent of the legislative person.
SOURCE: IC 2-7-5-11; (12)IN1353.1.9. -->     SECTION 9. IC 2-7-5-11 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 11. IC 5-22.5-3 governs the giving of gifts by a lobbyist to a legislative person.
SOURCE: IC 2-7-6-2; (12)IN1353.1.10. -->     SECTION 10. IC 2-7-6-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 2. (a) Any A person who knowingly or intentionally violates any provision of IC 2-7-2, IC 2-7-3, or IC 2-7-5 the following commits unlawful lobbying, a Class D felony:
         (1) IC 2-7-2.
        (2) IC 2-7-3.
        (3) IC 2-7-5, except IC 2-7-5-11.
    (b)
In addition to any penalty imposed on the defendant under IC 35-50-2-7 for unlawful lobbying, the court may order the defendant not to engage in lobbying for a period of up to ten (10) years, IC 2-7-5-6 notwithstanding.
    (b) (c) Any person who lobbies in contravention of a court order under subsection (a) of this section (b) commits a Class D felony.
SOURCE: IC 2-7-6-6; (12)IN1353.1.11. -->     SECTION 11. IC 2-7-6-6, AS AMENDED BY P.L.58-2010, SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 6. (a) The commission may impose either or both of the following sanctions if, after a hearing under IC 4-21.5-3, the commission finds that a lobbyist failed to file a report with a legislative person required by IC 2-7-3-3.3 or IC 2-7-3-7:
        (1) Revoke the registration of the lobbyist.
        (2) Assess a civil penalty against the lobbyist. A civil penalty assessed under this subdivision may not be more than five hundred dollars ($500).
    (b) In imposing sanctions under subsection (a), the commission shall consider the following:
        (1) Whether the failure to file the report was willful or negligent.
        (2) Any mitigating circumstances.
SOURCE: IC 3-5-2-15; (12)IN1353.1.12. -->     SECTION 12. IC 3-5-2-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 15. (a) Except as provided in subsection (f), "contribution" means a donation (whether characterized as an advance, a deposit, a gift, a loan, a subscription, or a contract or promise to make a donation) of property (as defined in IC 35-41-1) that satisfies both of the following:
        (1) The donation is made for the purpose of influencing any of the following:
            (A) The nomination or election to office of a candidate.
            (B) The election of delegates to a state constitutional convention.
            (C) The outcome of a public question.
        (2) The donation is accepted by any of the following:
            (A) A candidate.
            (B) A candidate's committee.
            (C) A regular party committee.
            (D) A political action committee.
            (E) A legislative caucus committee.
    (b) Whenever funds are transferred from one (1) committee to another, the accepting committee is considered to be receiving a contribution in the amount of the funds transferred.
    (c) Whenever a candidate or a committee accepts the personal services of a person whose compensation is being paid by a third person, the candidate or committee is considered to be receiving a contribution from the third person in the amount of the compensation paid.
    (d) Notwithstanding subsection (a), whenever a candidate or a committee accepts the personal services of a volunteer who is not being compensated, the candidate or committee is not considered to be receiving a contribution.
    (e) Notwithstanding subsection (a), whenever a political action committee accepts a donation of:
        (1) rent;
        (2) office expenses;
        (3) management fees;
        (4) costs of solicitations of contributions; or
        (5) other administrative costs;
the committee is not considered to be receiving a contribution.
     (f) The term "contribution" includes a gift permitted to be given under IC 5-22.5-3-3.
SOURCE: IC 3-9-5-14; (12)IN1353.1.13. -->     SECTION 13. IC 3-9-5-14 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 14. (a) As used in this section, "threshold contribution amount" refers to the following:
        (1) For contributions made to a candidate's committee, a legislative caucus committee, or a political action committee, one hundred dollars ($100).
        (2) For contributions made to a regular party committee, two hundred dollars ($200).
    (b) The report of each committee's treasurer must disclose the following:
        (1) The amount of cash on hand and the value of any investments made by the committee at the beginning of the reporting period.
        (2) The total sum of individual contributions including transfers-in, accepted by the committee during its reporting period.
        (3) The following information regarding each person who has made one (1) or more contributions within the year, in an aggregate amount that exceeds the threshold contribution amount in actual value to or for the committee, including the purchase of tickets for events such as dinners, luncheons, rallies, and similar fundraising events:
            (A) The full name of the person.
            (B) The full mailing address of the person making the contribution.
            (C) The person's occupation, if the person is an individual who has made contributions to the committee of at least one thousand dollars ($1,000) during the calendar year.
            (D) The date and amount of each contribution.
        (4) The name and address of each committee from which the reporting committee received, or to which that committee made, a transfer of funds, together with the amounts and dates of all transfers.
        (5) If the reporting committee is a candidate's committee, the following information about each other committee that has reported expenditures to the reporting candidate's committee under section 15 of this chapter:
            (A) The name and address of the other committee.
            (B) The amount of expenditures reported by the other committee.
            (C) The date of the expenditures reported by the other committee.
            (D) The purpose of the expenditures reported by the other committee.


        (6) Each loan to or from a person within the reporting period together with the following information:
            (A) The full names and mailing addresses of the lender and endorsers, if any.
            (B) The person's occupation, if the person is an individual who has made loans of at least one thousand dollars ($1,000) to the committee during the calendar year.
            (C) The date and amount of the loans.
        (7) The total sum of all receipts of the committee during the reporting period.
        (8) The full name, mailing address, occupation, and principal place of business, if any, of each person other than a committee to whom an expenditure was made by the committee or on behalf of the committee within the year in an aggregate amount that:
            (A) exceeds one hundred dollars ($100), in the case of a candidate's committee, legislative caucus committee, or political action committee; or
            (B) exceeds two hundred dollars ($200), in the case of a regular party committee.
        (9) The name, address, and office sought by each candidate for whom any expenditure was made or a statement identifying the public question for which any expenditure was made, including the amount, date, and purpose of each expenditure.
        (10) The full name, mailing address, occupation, and principal place of business, if any, of each person to whom an expenditure for personal services, salaries, or reimbursed expenses was made within the year in an aggregate amount that:
            (A) exceeds one hundred dollars ($100), in the case of a candidate's committee, legislative caucus committee, or political action committee; or
            (B) exceeds two hundred dollars ($200), in the case of a regular party committee;
        and that is not otherwise reported, including the amount, date, and purpose of the expenditure.
        (11) The total sum of expenditures made by the committee during the reporting period.
        (12) The amount and nature of debts owed by or to the committee, and a continuous reporting of the debts after the election at the times required under this article until the debts are extinguished.
         (13) If the committee is a political action committee, the value of each gift permitted to be given under IC 5-22.5-3-3, regardless of the value of the gift.
    (c) If a committee:
        (1) obtains a contribution;
        (2) determines that the contribution should not be accepted by the committee; and
        (3) does not receive and accept the contribution under IC 3-9-1-25(b);
the committee must return the contribution to the person who made the contribution. A returned contribution is not required to be listed on the report of the committee's treasurer. However, if the committee receives and deposits the contribution under IC 3-9-1-25(b) and subsequently determines that the contribution should be refunded, the receipt and refund of the contribution must be listed on the report of the committee's treasurer.
SOURCE: IC 4-2-6-1; (12)IN1353.1.14. -->     SECTION 14. IC 4-2-6-1, AS AMENDED BY P.L.2-2007, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 1. (a) As used in this chapter, and unless the context clearly denotes otherwise:
        (1) "Advisory body" means an authority, a board, a commission, a committee, a task force, or other body designated by any name of the executive department that is authorized only to make nonbinding recommendations.
        (2) "Agency" means 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 the executive, including the administrative, department of state government. The term includes a body corporate and politic set up as an instrumentality of the state and a private, nonprofit, government related corporation. The term does not include any of the following:
            (A) The judicial department of state government.
            (B) The legislative department of state government.
            (C) A state educational institution.
            (D) A political subdivision.
        (3) "Appointing authority" means the chief administrative officer of an agency. The term does not include a state officer.
        (4) "Assist" means to:
            (A) help;
            (B) aid;
            (C) advise; or
            (D) furnish information to;
        a person. The term includes an offer to do any of the actions in clauses (A) through (D).
        (5) "Business relationship" includes the following:
            (A) Dealings of a person with an agency seeking, obtaining, establishing, maintaining, or implementing:
                (i) a pecuniary interest in a contract or purchase with the agency; or
                (ii) a license or permit requiring the exercise of judgment or discretion by the agency.
            (B) The relationship a lobbyist has with an agency.
            (C) The relationship an unregistered lobbyist has with an agency.
        (6) "Commission" refers to the state ethics commission created under section 2 of this chapter.
        (7) "Compensation" means any money, thing of value, or financial benefit conferred on, or received by, any person in return for services rendered, or for services to be rendered, whether by that person or another.
        (8) "Employee" means an individual, other than a state officer, who is employed by an agency on a full-time, a part-time, a temporary, an intermittent, or an hourly basis. The term includes an individual who contracts with an agency for personal services.
        (9) "Employer" means any person from whom a state officer or employee or the officer's or employee's spouse received compensation. For purposes of this chapter, a customer or client of a self-employed individual in a sole proprietorship or a professional practice is not considered to be an employer.
        (10) "Financial interest" means an interest:
            (A) in a purchase, sale, lease, contract, option, or other transaction between an agency and any person; or
            (B) involving property or services.
        The term includes an interest arising from employment or prospective employment for which negotiations have begun. The term does not include an interest of a state officer or employee in the common stock of a corporation unless the combined holdings in the corporation of the state officer or the employee, that individual's spouse, and that individual's unemancipated children are more than one percent (1%) of the outstanding shares of the common stock of the corporation. The term does not include an interest that is not greater than the interest of the general public or any state officer or any state employee.
         (11) "Gift" has the meaning set forth in IC 5-22.5-1-5.
        (11) (12) "Information of a confidential nature" means information:
            (A) obtained by reason of the position or office held; and
            (B) which:
                (i) a public agency is prohibited from disclosing under IC 5-14-3-4(a);
                (ii) a public agency has the discretion not to disclose under IC 5-14-3-4(b) and that the agency has not disclosed; or
                (iii) is not in a public record, but if it were, would be confidential.
        (12) (13) "Person" means any individual, proprietorship, partnership, unincorporated association, trust, business trust, group, limited liability company, or corporation, whether or not operated for profit, or a governmental agency or political subdivision.
        (13) (14) "Political subdivision" means a county, city, town, township, school district, municipal corporation, special taxing district, or other local instrumentality. The term includes an officer of a political subdivision.
        (14) (15) "Property" has the meaning set forth in IC 35-41-1-23.
        (15) (16) "Represent" means to do any of the following on behalf of a person:
            (A) Attend an agency proceeding.
            (B) Write a letter.
            (C) Communicate with an employee of an agency.
        (16) (17) "Special state appointee" means a person who is:
            (A) not a state officer or employee; and
            (B) elected or appointed to an authority, a board, a commission, a committee, a council, a task force, or other body designated by any name that:
                (i) is authorized by statute or executive order; and
                (ii) functions in a policy or an advisory role in the executive (including the administrative) department of state government, including a separate body corporate and politic.
        (17) (18) "State officer" means any of the following:
            (A) The governor.
            (B) The lieutenant governor.
            (C) The secretary of state.
            (D) The auditor of state.
            (E) The treasurer of state.
            (F) The attorney general.
            (G) The superintendent of public instruction.
        (18) (19) The masculine gender includes the masculine and feminine.
        (19) (20) The singular form of any noun includes the plural wherever appropriate.
    (b) The definitions in IC 4-2-7 apply throughout this chapter.
SOURCE: IC 4-2-6-8; (12)IN1353.1.15. -->     SECTION 15. IC 4-2-6-8, AS AMENDED BY P.L.23-2011, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 8. (a) The following persons shall file a written financial disclosure statement:
        (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) The chief investment officer employed by the Indiana public retirement system.
        (8) Any employee of the Indiana public retirement system whose duties include the recommendation, selection, and management of:
            (A) the investments of the funds administered by the Indiana public retirement system;
            (B) the investment options offered in the annuity savings accounts in the public employees' retirement fund and the Indiana state teachers' retirement fund;
            (C) the investment options offered in the legislators' defined contribution plan; or
            (D) investment managers, investment advisors, and other investment service providers of the Indiana public retirement system.
        (9) 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 dollars ($100).
        (2) (1) 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) (2) 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) (3) 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) (4) 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) (5) 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) (6) 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) (7) The name and address of the most recent former employer.
        (9) (8) 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.

SOURCE: IC 4-2-6-12; (12)IN1353.1.16. -->     SECTION 16. IC 4-2-6-12, AS AMENDED BY P.L.89-2006,

SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 12. (a) If the commission finds a violation of:
         (1) this chapter;
         (2) IC 4-2-7; or
         (3) IC 4-2-8; or
         (4) a rule adopted under this chapter, IC 4-2-7, or IC 4-2-8; or
        (5) IC 5-22.5-3-3 by a state officer, an employee, or a special state appointee;

in a proceeding under section 4 of this chapter, the commission may take any of the following actions described in subsection (b).
    (b) The commission may take any of the following actions if it finds a violation under subsection (a):

        (1) Impose a civil penalty upon a respondent not to exceed three (3) times the value of any benefit received from the violation.
        (2) Cancel a contract.
        (3) Bar a person from entering into a contract with an agency or a state officer for a period specified by the commission.
        (4) Order restitution or disgorgement.
        (5) Reprimand, suspend, or terminate an employee or a special state appointee.
        (6) Reprimand or recommend the impeachment of a state officer.
        (7) Bar a person from future state employment as an employee or future appointment as a special state appointee.
        (8) Revoke a license or permit issued by an agency.
        (9) Bar a person from obtaining a license or permit issued by an agency.
        (10) Revoke the registration of a person registered as a lobbyist under IC 4-2-8.
        (11) Bar a person from future lobbying activity with a state officer or agency.

SOURCE: IC 5-14-7-4; (12)IN1353.1.17. -->     SECTION 17. IC 5-14-7-4, AS ADDED BY P.L.58-2010, SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 4. (a) An employer shall annually file a single, aggregate report of expenditures for lobbying activities by each of the employer's legislative liaisons stating expenditures for entertainment (including meals and drink) or gifts that
        (1) total per legislative person:
            (A) fifty dollars ($50) or more in one (1) day; or
            (B) together more than two hundred fifty dollars ($250) during the calendar year; and
        (2) would be reportable to the lobby registration commission by

a registered lobbyist under IC 2-7.
    (b) A report under this section may not include the following:
        (1) Items provided under a statute or from an agency for redistribution to constituents.
        (2) Items provided during the performance of official duties by a legislative person, including the legislative person's service as a member of, or participant in, any of the following:
            (A) The legislative council.
            (B) The budget committee.
            (C) A standing or other committee established by the rules of the house of representatives or the senate.
            (D) A study committee established by statute or by the legislative council.
            (E) A statutory board or commission.
        (3) A scholarship, student employment, or other financial aid granted to a legislative person for attendance at a state educational institution.
        (4) Expenditures relating to an economic development effort, function, or event by an agency, including those hosted by the Indiana economic development corporation.

SOURCE: IC 5-14-7-8; (12)IN1353.1.18. -->     SECTION 18. IC 5-14-7-8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 8. IC 5-22.5-3 governs the giving of gifts by a legislative liaison to a legislative person.
SOURCE: IC 5-22.5; (12)IN1353.1.19. -->     SECTION 19. IC 5-22.5 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]:
     ARTICLE 22.5. GOVERNMENT ETHICS
    Chapter 1. Definitions
    Sec. 1. The definitions in this chapter apply throughout this article.
    Sec. 2. (a) "Close relative" of an individual refers to any of the following:
        (1) The individual's spouse.
        (2) A parent of the individual or a parent of the individual's spouse.
        (3) A child of the individual or a child of the individual's spouse.
        (4) A sibling of the individual or a sibling of the individual's spouse.
        (5) An aunt or an uncle of the individual or an aunt or uncle of the individual's spouse.
        (6) A niece or nephew of the individual or a niece or nephew of the individual's spouse.
        (7) A grandparent of the individual or a grandparent of the individual's spouse.
        (8) A grandchild of the individual or a grandchild of the individual's spouse.
        (9) A great-grandparent of the individual or a great-grandparent of the individual's spouse.
        (10) A great-grandchild of the individual or a great-grandchild of the individual's spouse.
    (b) A relative by adoption, half-blood, marriage, or remarriage is considered as a relative of whole kinship.
    Sec. 3. "Elected official" refers to an individual who holds any of the following offices:
        (1) A state office (as defined in IC 3-5-2-48).
        (2) A legislative office (as defined in IC 3-5-2-28).
        (3) A local office (as defined in IC 3-5-2-29).
        (4) A school board office (as defined in IC 3-5-2-45).
    Sec. 4. "Executive branch lobbyist" means an individual who seeks to influence decision making of a state agency and who is registered as an executive branch lobbyist under rules adopted by the Indiana department of administration.
    Sec. 5. (a) "Gift" means the voluntary transfer of any property that has value without consideration.
    (b) The term includes a gift that may be classified for tax purposes as entertainment.
    (c) The term does not include any of the following:
        (1) A contribution (as defined in IC 3-5-2-15) except a gift permitted under IC 5-22.5-3-3.
        (2) A gift given or entertainment provided by a legislative lobbyist, a legislative liaison, or an employer of a legislative liaison that is for the benefit of all the members of any legislative body.
        (3) Items provided under a statute or from a state agency for redistribution to constituents.
        (4) Items provided during the performance of official duties by a legislative person, including the legislative person's service as a member of, or participant in, any of the following:
            (A) The legislative council.
            (B) The budget committee.
            (C) A standing or other committee established by the rules of the house of representatives or the senate.
            (D) A study committee established by statute or by the legislative council.
            (E) A statutory board or commission.
        (5) A scholarship, student employment, or other financial aid granted to an individual for attendance at a state educational institution.
        (6) Expenditures relating to an economic development effort, function, or event by a state agency, including those hosted by the Indiana economic development corporation.
    Sec. 6. (a) "Government employee" refers to an employee of a governmental body who:
        (1) is employed by the governmental body on a full-time, a part-time, a temporary, an intermittent, or an hourly basis; or
        (2) contracts with the governmental body for personal services.
    (b) The term does not include an elected official.
    Sec. 7. "Governmental body" means an agency, a board, a branch, a bureau, a commission, a council, a department, an institution, an office, or another establishment of any of the following:
        (1) The executive branch.
        (2) The judicial branch.
        (3) The legislative branch.
        (4) A political subdivision.
    Sec. 8. "Legislative body" has the meaning set forth in IC 2-7-1-7.2.
    Sec. 9. "Legislative liaison" has the meaning set forth in IC 5-14-7-3, and for purposes of this article, includes the employer of the legislative liaison.
    Sec. 10. "Legislative lobbyist" refers to a lobbyist as defined in IC 2-7-1-10.
    Sec. 11. "Legislative person" has the meaning set forth in IC 2-7-1-8.
    Sec. 12. "Lobbyist" refers to either of the following:
        (1) An executive branch lobbyist.
        (2) A legislative lobbyist.
    Sec. 13. "Nominal gift" refers to a gift of any of the following:
        (1) Any of the following kind of services:
            (A) Providing advice or information.
            (B) Consultation.
            (C) Communication in connection with legislation.
            (D) Services to constituents.
            (E) Any other services to assist another person in the performance of official governmental duties.
        (2) Services that have insignificant monetary value.
        (3) A plaque with a resale value of not more than five dollars ($5).
        (4) A trinket or memento costing not more than five dollars ($5).
        (5) Informational material with a resale value of not more than five dollars ($5).
        (6) Food or beverage given at a reception, meal, or meeting away from the recipient's place of work by an organization before whom the recipient appears to make a speech or answer questions as part of a program.
    Sec. 14. (a) "Offer" means a response to a solicitation.
    (b) The term includes a bid, proposal, and quote.
    Sec. 15. "Offeror" means a person that submits an offer to a governmental body.
    Sec. 16. "Organization" refers to a person that is not an individual.
    Sec. 17. "Person" means an association, a business, a committee, a corporation, a fiduciary, an individual, a joint stock company, a joint venture, a limited liability company, a partnership, a sole proprietorship, a trust, or another legal entity, organization, or group of individuals.
    Sec. 18. "Political action committee" has the meaning set forth in IC 3-5-2-37.
    Sec. 19. "Political subdivision" has the meaning set forth in IC 36-1-2-13.
    Sec. 20. "Property" has the meaning set forth in IC 35-41-1-23.
    Sec. 21. "Public servant" refers to either of the following:
        (1) An elected official.
        (2) A government employee.
    Sec. 22. (a) "Solicitation" means the procedure by which a governmental body invites persons to submit an offer to enter into a contract with the governmental body for:
        (1) the purchase or sale of supplies by the governmental body;
        (2) a public works contract; or
        (3) a contract to provide professional or other services.
    (b) The term includes an invitation for bids, a request for proposals, and a request for quotes.
    Sec. 23. "State agency" has the meaning set forth in

IC 4-2-6-1(a)(2).
    Chapter 2. General Provisions
    Sec. 1. For purposes of this article, a person has a "business relationship" with a governmental body if any of the following apply:
        (1) The person:
            (A) is an offeror to the governmental body; or
            (B) assists another person:
                (i) as an employee of the other person; or
                (ii) under contract with the other person;
            to make an offer to the governmental body.
        (2) The person:
            (A) has a contract with the governmental body; or
            (B) assists another person:
                (i) as an employee of the other person; or
                (ii) under contract with the other person;
            to maintain or implement the other person's contract with the governmental body.
        (3) With respect to a state agency, the person functions as an executive branch lobbyist with that state agency.
        (4) With respect to a legislative person, the person is a legislative lobbyist or a legislative liaison.
    Chapter 3. Gifts
    Sec. 1. This chapter does not apply to the following:
        (1) Gifts given to a public servant by a close relative of the public servant.
        (2) Nominal gifts given to a public servant.
    Sec. 2. (a) A person who has a business relationship with a governmental body may not give a gift to a government employee of that governmental body.
    (b) A government employee may not accept a gift from a person who has a business relationship with the governmental body that employs the government employee.
    Sec. 3. (a) A person who has a business relationship with a governmental body may not give a gift to an elected official who serves that governmental body unless the person is a political action committee.
    (b) An elected official may not accept a gift from a person who has a business relationship with the governmental body that the elected official services unless the person is a political action committee.
    (c) A gift that is permitted to be given by a political action

committee under this section must be reported as a contribution under IC 3-9.
    Sec. 4. A person who knowingly or intentionally violates section 2 or 3 of this chapter commits a Class B misdemeanor.

SOURCE: IC 35-51-5-1; (12)IN1353.1.20. -->     SECTION 20. IC 35-51-5-1, AS ADDED BY P.L.70-2011, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 1. The following statutes define crimes in IC 5:
        IC 5-1-4-22 (Concerning hospital bonding authorities).
        IC 5-2-2-11 (Concerning the law enforcement academy building commission).
        IC 5-2-4-7 (Concerning criminal intelligence information).
        IC 5-10.4-3-16 (Concerning the Indiana state teacher's retirement fund).
        IC 5-11-1-18 (Concerning state board of accounts).
        IC 5-11-10-3 (Concerning certification of claims).
        IC 5-13-14-3 (Concerning public funds).
        IC 5-13-14-4 (Concerning public funds).
        IC 5-14-3-10 (Concerning access to public records).
        IC 5-15-6-8 (Concerning local public records commissions).
        IC 5-16-7-3 (Concerning wage scale of contractor's and subcontractors employees).
        IC 5-16-9-5 (Concerning parking for persons with physical disabilities).
        IC 5-17-1-5 (Concerning public purchases).
        IC 5-17-1-6 (Concerning public purchases).
         IC 5-22.5-3-4 (Concerning giving gifts to public servants).
        IC 5-28-15-7 (Concerning enterprise zones).
        IC 5-28-15-8 (Concerning enterprise zones).