Second Regular Session 114th General Assembly (2006)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE ENROLLED ACT No. 1397
AN ACT to amend the Indiana Code concerning state offices and administration.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-2-6-1; (06)HE1397.1.1. -->
SECTION 1. IC 4-2-6-1, AS AMENDED BY P.L.222-2005,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: 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.
(1) (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 (as defined in
IC 20-12-0.5-1).
(D) A political subdivision.
(2) (3) "Appointing authority" means the chief administrative
officer of an agency. The term does not include a state officer.
(3) (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).
(4) (5) "Business relationship"
means includes the following:
(A) Dealings of a person with an agency seeking, obtaining,
establishing, maintaining, or implementing:
(A) (i) a pecuniary interest in a contract or purchase with the
agency; or
(B) (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.
(5) (6) "Commission" refers to the state ethics commission
created under section 2 of this chapter.
(6) (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.
(7) (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.
(8) (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.
(9) (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.
(10) (11) "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.
(11) (12) "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.
(12) (13) "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.
(13) (14) "Property" has the meaning set forth in IC 35-41-1-23.
(14) (15) "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.
(15) (16) "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.
(16) (17) "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.
(17) (18) The masculine gender includes the masculine and
feminine.
(18) (19) 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 4-2-6-2; (06)HE1397.1.2. -->
SECTION 2. IC 4-2-6-2, AS AMENDED BY P.L.222-2005,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) There is created a state ethics
commission.
(b) The commission is composed of five (5) members appointed by
the governor.
(c) No more than three (3) commission members shall be of the
same political party. A person who:
(1) holds an elected or appointed office of the state;
(2) is employed by the state; or
(3) is registered as a lobbyist under IC 2-7-2-1; IC 4-2-7;
may not be a member of the commission. The governor shall designate
one (1) member of the commission as the chairperson. Each
appointment to the commission is for a period of four (4) years. A
vacancy shall be filled by the governor for the unexpired term.
(d) The inspector general shall provide rooms and staff assistance
for the commission.
SOURCE: IC 4-2-6-4; (06)HE1397.1.3. -->
SECTION 3. IC 4-2-6-4, AS AMENDED BY P.L.222-2005,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. (a) The commission may do any of the
following:
(1) Upon a vote of four (4) members, refer any matter within the
inspector general's authority to the inspector general for
investigation.
(2) Receive and hear any complaint filed with the commission by
the inspector general that alleges a violation of:
(A) this chapter;
(B) a rule adopted under this chapter;
or
any other statute or rule establishing standards of official conduct
of state officers, employees, an executive branch lobbyist (as
defined in IC 4-2-7-1), or special state appointees.
(C) IC 4-2-7;
(D) a rule adopted under IC 4-2-7;
(E) IC 4-2-8; or
(F) a rule adopted under IC 4-2-8.
(3) Obtain information and, upon a vote of four (4) members,
compel the attendance and testimony of witnesses and the
production of pertinent books and papers by a subpoena
enforceable by the circuit or superior court of the county where
the subpoena is to be issued.
(4) Recommend legislation to the general assembly relating to the
conduct and ethics of state officers, employees,
and special state
appointees,
including whether additional specific state officers or
employees should be required to file a financial disclosure
statement under section 8 of this chapter. and persons who have
business relationships with agencies.
(5) Adopt rules under IC 4-22-2 to implement this chapter.
(6) Prescribe and provide forms for statements required to be filed
under this chapter.
(7) (6) Accept and file information:
(A) voluntarily supplied; and
(B) that exceeds the requirements of this chapter.
(8) Inspect financial disclosure forms.
(9) Notify persons who fail to file forms required under this
chapter.
(10) Develop a filing, a coding, and an indexing system required
by this chapter and IC 35-44-1-3(f).
(11) (7) Conduct research.
(12) Prepare interpretive and educational materials and programs.
(b) The commission shall do the following:
(1) Act as an advisory body by issuing advisory opinions to
interpret this chapter,
IC 4-2-7, or the
commission's rules
or any
other statute or rule establishing standards of official conduct,
adopted under this chapter or IC 4-2-7, upon:
(A) request of:
(i) a state officer or a former state officer;
(ii) an employee or a former employee;
(iii) a person who has or had a business relationship with an
agency;
or
(iv) a special state appointee or former special state
appointee; or
(v) the inspector general; or
(B) motion of the commission.
(2) Conduct its proceedings in the following manner:
(A) When a complaint is filed with the commission, the
commission may:
(i) reject, without further proceedings, a complaint that the
commission considers frivolous or inconsequential;
(ii) reject, without further proceedings, a complaint that the
commission is satisfied has been dealt with appropriately by
an agency;
(iii) upon the vote of four (4) members, determine that the
complaint does not allege facts sufficient to constitute a
violation of this chapter or the code of ethics and dismiss the
complaint; or
(iv) forward a copy of the complaint to the attorney general,
the prosecuting attorney of the county in which the alleged
violation occurred, the state board of accounts, a state
officer, the appointing authority, or other appropriate person
for action, and stay the commission's proceedings pending
the other action.
(B) If a complaint is not disposed of under clause (A), a copy
of the complaint shall be sent to the person alleged to have
committed the violation.
(C) If the complaint is not disposed of under clause (A), the
commission may promptly refer the alleged violation for
additional investigation by the inspector general. If the
commission finds by a majority vote that probable cause exists
to support an alleged violation, it shall
convene set a public
hearing on the matter.
within sixty (60) days after making the
determination. The respondent shall be notified within fifteen
(15) days of the commission's determination. Except as
provided in this section, the commission's evidence relating to
an investigation is confidential.
(D) A complaint filed with the commission is open for public
inspection after the commission finds that probable cause
exists. However, a complaint filed by the inspector general that
contains confidential information under IC 4-2-7-8 may be
redacted to exclude the confidential information. Every
hearing and other proceeding in which evidence is received by
the commission is open to the public. Investigative reports by
the inspector general that are not filed with the commission
may be kept confidential.
(E) A:
(i) complaint that is filed with; or
(ii) proceeding that is held by;
the commission before the commission has found probable
cause is confidential unless the target of the investigation
elects to have information disclosed, or the commission elects
to respond to public statements by the person who filed the
complaint.
(F) The commission may acknowledge:
(i) the existence and scope of an investigation before the
finding of probable cause; or
(ii) that the commission did not find probable cause to
support an alleged violation.
(G) If a hearing is to be held, the respondent may examine and
make copies of all evidence in the commission's possession
relating to the charges. At the hearing, the charged party shall
be afforded appropriate due process protection consistent with
IC 4-21.5, including the right to be represented by counsel, the
right to call and examine witnesses, the right to introduce
exhibits, and the right to cross-examine opposing witnesses.
(H) After the hearing, the commission shall state its findings
of fact. If the commission, based on
competent and substantial
a preponderance of the evidence, finds by a majority vote
that the respondent has violated this chapter,
IC 4-2-7,
IC 4-2-8, or a rule adopted under this chapter,
or any other
statute or rule establishing standards of official conduct of
state officers, employees, or special state appointees, IC 4-2-7,
or IC 4-2-8, it shall state its findings in writing in a report,
which shall be supported and signed by a majority of the
commission members and shall be made public.
(I) If the commission, based on
competent and substantial a
preponderance of the evidence, finds by a majority vote a
violation of this chapter,
IC 4-2-7, IC 4-2-8, or a rule adopted
under this chapter,
or any other statute or rule establishing
standards of official conduct of state officers, employees, or
special state appointees, IC 4-2-7, or IC 4-2-8, the
commission may also take any of the actions provided in
section 12 of this chapter.
(J) The report required under clause (H) shall be presented to:
(i) the respondent;
(ii) the appointing authority or state officer of the employee,
former employee, or special state appointee;
(iii) the appointing authority or state officer of an agency
or office that has a business relationship with the person
sanctioned; and
(iii) (iv) the governor.
(K) The commission may also forward the report to any of the
following:
(i) The prosecuting attorney of each county in which the
violation occurred.
(ii) The state board of accounts.
(iii) The state personnel director.
(iv) The attorney general.
(v) A state officer.
(vi) The appointing authority of the state employee or
agency that has a business relationship with the person
sanctioned.
(vii) Any other appropriate person.
(L) If the commission finds the respondent has not violated a
code or statutory provision or a rule adopted under this
chapter, IC 4-2-7, or IC 4-2-8, it shall dismiss the charges.
(3) Review all conflict of interest disclosures received by the
commission under IC 35-44-1-3, maintain an index of those
disclosures, and issue advisory opinions and screening procedures
as set forth in section 9 of this chapter.
(c) Notwithstanding IC 5-14-3-4(b)(8)(C), the records of the
commission concerning the case of a respondent that are not
confidential under IC 5-14-3-4(b)(2)(C) shall be available for
inspection and copying in accordance with IC 5-14-3.
SOURCE: IC 4-2-6-4.3; (06)HE1397.1.4. -->
SECTION 4. IC 4-2-6-4.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4.3. (a) This section applies to a commission
meeting at which at least three (3) members of the commission are
physically present at the place where the meeting is being
conducted. The commission may not conduct a hearing under
section 4(b)(2)(G) of this chapter under this section.
(b) A commission member may participate in a commission
meeting by using a means of communication that permits:
(1) all other commission members participating in the
meeting; and
(2) all members of the public physically present at the place
where the meeting is being conducted;
to communicate simultaneously with each other during the
meeting.
(c) A commission member who participates in a meeting under
subsection (b) is considered to be present at the meeting.
(d) A commission member who participates in a meeting under
subsection (b) may act as a voting member on official action only
if at least two (2) commission members physically present at the
place where the meeting is being conducted concur in the official
action.
(e) The memoranda of the meeting prepared under
IC 5-14-1.5-4 must also state the name of each member who:
(1) was physically present at the place where the meeting was
conducted;
(2) participated in the meeting by using a means of
communication described in subsection (b); or
(3) was absent.
(f) A commission member who participates in a meeting under
subsection (b) may not cast the deciding vote on any official action.
SOURCE: IC 4-2-6-4.5; (06)HE1397.1.5. -->
SECTION 5. IC 4-2-6-4.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4.5. Whenever an
appointing authority or a state officer receives a report under section
4(b)(2)(G) 4(b)(2)(H) of this chapter, the appointing authority or state
officer shall report to the commission the action taken in response to
the report. The commission may require in the report that the
appointing authority or the state officer submit the response required
by this section in a reasonable, specified amount of time.
SOURCE: IC 4-2-6-5.5; (06)HE1397.1.6. -->
SECTION 6. IC 4-2-6-5.5, AS ADDED BY P.L.222-2005,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5.5. (a) A current state officer, employee, or
special state appointee shall not knowingly:
(1) accept other employment involving compensation of
substantial value if the responsibilities of that employment are
inherently incompatible with the responsibilities of public office
or require the individual's recusal from matters so central or
critical to the performance of the individual's official duties that
the individual's ability to perform those duties would be
materially impaired;
(2) accept employment or engage in business or professional
activity that would require the individual to disclose confidential
information that was gained in the course of state employment; or
(3) use or attempt to use the individual's official position to secure
unwarranted privileges or exemptions that are:
(A) of substantial value; and
(B) not properly available to similarly situated individuals
outside state government.
(b) A written advisory opinion issued by the
inspector general
commission or the individual's supervisor appointing authority or
agency ethics officer granting approval of outside employment is
conclusive proof that an individual is not in violation of subsection
(a)(1) or (a)(2).
SOURCE: IC 4-2-6-6; (06)HE1397.1.7. -->
SECTION 7. IC 4-2-6-6 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 6. No state officer or employee,
former state officer or employee, or special state appointee, or former
special state appointee shall accept any compensation from any
employment, transaction, or investment which was entered into or
made as a result of material information of a confidential nature.
SOURCE: IC 4-2-6-7; (06)HE1397.1.8. -->
SECTION 8. IC 4-2-6-7 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 7. (a) This section does not
apply to a special state appointee who serves only as a member of
an advisory body.
(b) A state officer, or employee, or special state appointee may not
receive compensation:
(1) for the sale or lease of any property or service which
substantially exceeds that which the state officer, or employee, or
special state appointee would charge in the ordinary course of
business; and
(2) from any person whom he the state officer, employee, or
special state appointee knows or, in the exercise of reasonable
care and diligence should know, has a business relationship with
the agency in which the state officer, or employee, or special
state appointee holds a position.
SOURCE: IC 4-2-6-8; (06)HE1397.1.9. -->
SECTION 9. IC 4-2-6-8, AS AMENDED BY P.L.222-2005,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: 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.
(6) (7) An employee required to do so by rule adopted by the
commission. inspector general.
(b) The statement shall be filed with the commission 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) The location of all real property in which the state officer,
candidate, or the employee or that individual's spouse or
unemancipated children has an equitable or legal interest either
amounting to five thousand dollars ($5,000) or more or
comprising ten percent (10%) of the state officer's, candidate's, or
the employee's net worth or the net worth of that individual's
spouse or unemancipated children. An individual's primary
personal residence need not be listed, unless it also serves as
income property.
(3) The names and the nature of the business of the employers of
the state officer, candidate, or the employee and that individual's
spouse.
(4) The following information about any sole proprietorship
owned or professional practice operated by the state officer,
candidate, or the employee or that individual's spouse:
(A) The name of the sole proprietorship or professional
practice.
(B) The nature of the business.
(C) Whether any clients are known to have had a business
relationship with the agency of the state officer or employee or
the office sought by the candidate.
(D) The name of any client or customer from whom the state
officer, candidate, employee, or that individual's spouse
received more than thirty-three percent (33%) of the state
officer's, candidate's, employee's, or that individual's spouse's
nonstate income in a year.
(5) The name of any partnership of which the state officer,
candidate, or the employee or that individual's spouse is a member
and the nature of the partnership's business.
(6) The name of any corporation (other than a church) of which
the state officer, candidate, or the employee or that individual's
spouse is an officer or a director and the nature of the
corporation's business.
(7) The name of any corporation in which the state officer,
candidate, or the employee or that individual's spouse or
unemancipated children own stock or stock options having a fair
market value in excess of ten thousand dollars ($10,000).
However, if the stock is held in a blind trust, the name of the
administrator of the trust must be disclosed on the statement
instead of the name of the corporation. A time or demand deposit
in a financial institution or insurance policy need not be listed.
(8) The name and address of the most recent former employer.
(9) Additional information that the person making the disclosure
chooses to include.
Any such state officer, candidate, or employee may file an amended
statement upon discovery of additional information required to be
reported.
(d) A person who:
(1) fails to file a statement required by rule or this section in a
timely manner; or
(2) files a deficient statement;
upon a majority vote of the commission, is subject to a civil penalty at
a rate of not more than ten dollars ($10) for each day the statement
remains delinquent or deficient. The maximum penalty under this
subsection is one thousand dollars ($1,000).
(e) A person who intentionally or knowingly files a false statement
commits a Class A infraction.
SOURCE: IC 4-2-6-11; (06)HE1397.1.10. -->
SECTION 10. IC 4-2-6-11, AS AMENDED BY P.L.222-2005,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 11. (a) 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.
(b) This subsection applies only to a person who served as a state
officer, employee, or special state employee appointee after January
10, 2005. A former state officer, employee, or special state appointee
may not accept employment or receive compensation:
(1) as a lobbyist; (as defined in IC 4-2-7-1);
(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 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) 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) 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) A written advisory opinion issued by the inspector general
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) Subsection (b) does not apply to a special state appointee who
serves only as a member of an advisory body.
(g) An employee's or a special state appointee's state officer or
appointing authority may waive application of subsection (b) or (c)
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.
(h) Subsection (b) does not apply to a special state appointee
who:
(1) was a special state appointee before January 10, 2005; and
(2) is a special state appointee after January 9, 2005.
This subsection expires January 1, 2007.
SOURCE: IC 4-2-6-11.5; (06)HE1397.1.11. -->
SECTION 11. IC 4-2-6-11.5, AS ADDED BY P.L.222-2005,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 11.5. (a) This section applies only to a person
special state appointee appointed after January 10, 2005.
(b) As used in this section, "advisory body" means a board, a
commission, a committee, an authority, or a task force of the executive
department that is authorized only to make nonbinding
recommendations.
(c) (b) Except as provided in subsection (d) (c), a lobbyist (as
defined in IC 4-2-7-1) may not serve as a member of a board, a
commission, a committee, an authority, or a task force of the executive
department. special state appointee.
(d) (c) A lobbyist (as defined in IC 4-2-7-1) may serve as a member
of an advisory body.
SOURCE: IC 4-2-6-12; (06)HE1397.1.12. -->
SECTION 12. IC 4-2-6-12, AS AMENDED BY P.L.222-2005,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 12. If the commission finds a violation of this
chapter, IC 4-2-7, or IC 4-2-8, or a rule adopted under this chapter or
any other statute or rule governing official conduct of state officers,
employees, or special state appointees, IC 4-2-7, or IC 4-2-8, in a
proceeding under section 4 of this chapter, the commission may take
any of the following actions:
(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 any 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 4-2-6-13; (06)HE1397.1.13. -->
SECTION 13. IC 4-2-6-13, AS AMENDED BY P.L.222-2005,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 13. (a) Except as provided in subsection (b),
a state officer, an employee, or a special state appointee shall not
retaliate or threaten to retaliate against an employee, or a former
employee, a special state appointee, or a former special state
appointee because the employee, or former employee, special state
appointee, or former special state appointee did any of the
following:
(1) Filed a complaint with the commission or the inspector
general.
(2) Provided information to the commission or the inspector
general.
(3) Testified at a commission proceeding.
(b) A state officer, an employee, or a special state appointee may
take appropriate action against an employee who took any of the
actions listed in subsection (a) if the employee or special state
appointee:
(1) did not act in good faith; or
(2) knowingly or recklessly provided false information or
testimony to the commission.
(c) A person who violates this section is subject to action under
section 12 of this chapter.
(d) A person who knowingly or intentionally violates this section
commits a Class A misdemeanor. In addition to any criminal penalty
imposed under IC 35-50-3, a person who commits a misdemeanor
under this section is subject to action under section 12 of this chapter.
SOURCE: IC 4-2-7-3; (06)HE1397.1.14. -->
SECTION 14. IC 4-2-7-3, AS ADDED BY P.L.222-2005,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. The inspector general shall do the
following:
(1) Initiate, supervise, and coordinate investigations.
(2) Recommend policies and carry out other activities designed to
deter, detect, and eradicate fraud, waste, abuse, mismanagement,
and misconduct in state government.
(3) Receive complaints alleging the following:
(A) A violation of the code of ethics.
(B) Bribery (IC 35-44-1-1).
(C) Official misconduct (IC 35-44-1-2).
(D) Conflict of interest (IC 35-44-1-3).
(E) Profiteering from public service (IC 35-44-1-7).
(F) A violation of the executive branch lobbying rules.
(G) A violation of a statute or rule relating to the purchase of
goods or services by a current or former employee, state
officer, special state appointee, lobbyist, or person who has a
business relationship with an agency.
(4) If the inspector general has reasonable cause to believe that a
crime has occurred or is occurring, report the suspected crime to:
(A) the governor; and
(B) appropriate state or federal law enforcement agencies and
prosecuting authorities having jurisdiction over the matter.
(5) Adopt rules under IC 4-22-2 to implement IC 4-2-6 and this
chapter.
(6) Adopt rules under IC 4-22-2 and section 5 of this chapter to
implement a code of ethics.
(6) (7) Ensure that every:
(A) employee;
(B) state officer;
(C) special state appointee; and
(D) person who has a business relationship with an agency;
is properly trained in the code of ethics.
(7) (8) Provide advice to an agency on developing, implementing,
and enforcing policies and procedures to prevent or reduce the
risk of fraudulent or wrongful acts within the agency.
(8) (9) Recommend legislation to the governor and general
assembly to strengthen public integrity laws , including the code
of ethics for state officers, employees, special state appointees,
and persons who have a business relationship with an agency,
including whether additional specific state officers, employees,
or special state appointees should be required to file a
financial disclosure statement under IC 4-2-6-8.
(9) (10) Annually submit a report to the legislative council
detailing the inspector general's activities. The report must be in
an electronic format under IC 5-14-6.
(11) Prescribe and provide forms for statements required to
be filed under IC 4-2-6 or this chapter.
(12) Accept and file information:
(A) voluntarily supplied;
(B) that exceeds the requirements of this chapter.
(13) Inspect financial disclosure forms.
(14) Notify persons who fail to file forms required under
IC 4-2-6 or this chapter.
(15) Develop a filing, a coding, and an indexing system
required by IC 4-2-6 and IC 35-44-1-3.
(16) Prepare interpretive and educational materials and
programs.
SOURCE: IC 4-2-8; (06)HE1397.1.15. -->
SECTION 15. IC 4-2-8 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
Chapter 8. Registration and Reporting of Executive Branch
Lobbyists
Sec. 1. The definitions in IC 4-2-6 and IC 4-2-7 apply
throughout this chapter.
Sec. 2. As used in this chapter, "department" refers to the
Indiana department of administration created by IC 4-13-1-2.
Sec. 3. (a) An executive branch lobbyist shall file the following
with the department:
(1) A registration statement.
(2) An annual report as required by the department.
(b) Statements and reports filed under this section must be filed
under oath.
Sec. 4. (a) The department shall charge each executive branch
lobbyist an initial registration fee and an annual report filing fee
set by rules adopted by the department under IC 4-22-2.
(b) In the rules adopted under this section, the department may
provide for late fees for registration statements and annual reports
that are filed late.
Sec. 5. (a) If the department finds that:
(1) a statement or report required to be filed under this
chapter was materially incorrect;
(2) the person filing the statement or report was requested to
file a corrected statement or report; and
(3) a corrected statement or report has not been filed;
the department may refer the matter to the inspector general or,
after a hearing conducted under IC 4-21.5-3, take action under
subsection (b).
(b) If the department makes a finding under subsection (a), the
department may do either or both of the following:
(1) Revoke the registration of the person who has failed to file
a corrected statement or report.
(2) For a finding made after June 30, 2007, assess a civil
penalty on the person who has failed to file a corrected
statement or report of not more than five hundred dollars
($500).
Sec. 6. (a) The department may impose either or both of the
following sanctions if, after a hearing under IC 4-21.5-3, the
department finds that a person has failed to file a registration
statement or a report required by this chapter:
(1) Revoke the person's registration.
(2) For a finding made after June 30, 2007, assess a civil
penalty on the person of not more than five hundred dollars
($500).
(b) In imposing sanctions under this section, the department
shall consider the following:
(1) Whether the failure to file the statement or report was
willful or negligent.
(2) Any mitigating circumstances.
Sec. 7. In consultation with the inspector general and the
commission, the department may adopt rules under IC 4-22-2 to
accomplish the duties given to the department under this chapter.
SOURCE: IC 4-13-1-4.2; (06)HE1397.1.16. -->
SECTION 16. IC 4-13-1-4.2 IS REPEALED [EFFECTIVE UPON
PASSAGE].
SOURCE: ; (06)HE1397.1.17. -->
SECTION 17. [EFFECTIVE UPON PASSAGE] (a) The definitions
in IC 4-2-6, IC 4-2-7, and IC 4-2-8 apply throughout this
SECTION.
(b) The registration fee for an executive branch lobbyist under
IC 4-2-8 is fifty dollars ($50) until the department sets a different
fee by rules adopted by the department under IC 4-22-2.
(c) The annual report filing fee for a lobbyist under IC 4-2-8 is
fifty dollars ($50) until the department sets a different fee by rules
adopted by the department under IC 4-22-2.
(d) This SECTION expires on the earlier of the following:
(1) The date that rules to set registration fees for executive
branch lobbyists adopted under IC 4-2-8-4, as added by this
act, take effect.
(2) July 1, 2008.
SOURCE: ; (06)HE1397.1.18. -->
SECTION 18.
An emergency is declared for this act.
HEA 1397 _ Concur
Figure
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