auditing department of the municipality examined and reported upon,
and one (1) copy in an electronic format under IC 5-14-6 of the reports
of examination of state agencies, instrumentalities of the state, and
federal funds administered by the state with the legislative services
agency, as staff to the general assembly. Upon filing, the report
becomes a part of the public records of the office of the state examiner,
of the office or the person examined, of the auditing department of the
municipality examined and reported upon, and of the legislative
services agency, as staff to the general assembly. A report is open to
public inspection at all reasonable times after it is filed. If an
examination discloses malfeasance, misfeasance, or nonfeasance in
office or of any officer or employee, a copy of the report, signed and
verified, shall be placed by the state examiner with the attorney general
and the inspector general. The attorney general shall diligently institute
and prosecute civil proceedings against the delinquent officer, or upon
the officer's official bond, or both, and against any other proper person
that will secure to the state or to the proper municipality the recovery
of any funds misappropriated, diverted, or unaccounted for.
(b) Before an examination report is signed, verified, and filed as required by subsection (a), the officer or the chief executive officer of the state office, municipality, or entity examined must have an opportunity to review the report and to file with the state examiner a written response to that report. If a written response is filed, it becomes a part of the examination report that is signed, verified, and filed as required by subsection (a).
(c) Except as required by subsections (b) and (d), it is unlawful for any deputy examiner, field examiner, or private examiner, before an examination report is made public as provided by this section, to make any disclosure of the result of any examination of any public account, except to the state examiner or if directed to give publicity to the examination report by the state examiner or by any court. If an examination report shows or discloses the commission of a crime by any person, it is the duty of the state examiner to transmit and present the examination report to the grand jury of the county in which the crime was committed at its first session after the making of the examination report and at any subsequent sessions that may be required. The state examiner shall furnish to the grand jury all evidence at the state examiner's command necessary in the investigation and prosecution of the crime.
(d) If, during an examination under this article, a deputy examiner, field examiner, or private examiner acting as an agent of the state examiner determines that the following conditions are satisfied, the examiner shall report the determination to the state examiner:
(1) A substantial amount of public funds has been misappropriated or diverted.
(2) The deputy examiner, field examiner, or private examiner
acting as an agent of the state examiner has a reasonable belief
that the malfeasance or misfeasance that resulted in the
misappropriation or diversion of the public funds was committed
by the officer or an employee of the office.
(e) After receiving a preliminary report under subsection (d), the state examiner may provide a copy of the report to the attorney general. The attorney general may institute and prosecute civil proceedings against the delinquent officer or employee, or upon the officer's or employee's official bond, or both, and against any other proper person that will secure to the state or to the proper municipality the recovery of any funds misappropriated, diverted, or unaccounted for.
(f) In an action under subsection (e), the attorney general may attach the defendant's property under IC 34-25-2.
(g) A preliminary report under subsection (d) is confidential until the final report under subsection (a) is issued, unless the attorney general institutes an action under subsection (e) on the basis of the preliminary report.".
Renumber all SECTIONS consecutively.
(Reference is to ESB 621 as printed April 2, 2013.)