Bill Text: IN SB0114 | 2010 | Regular Session | Amended
Bill Title: Government ethics.
Spectrum: Slight Partisan Bill (Republican 32-17)
Status: (Engrossed - Dead) 2010-02-11 - Representative Bosma added as cosponsor [SB0114 Detail]
Download: Indiana-2010-SB0114-Amended.html
Citations Affected: IC 2-2.1; IC 2-7; IC 3-9; IC 4-2; IC 5-14.
January 5, 2010, read first time and referred to Committee on Rules and Legislative Procedure.
January 11, 2010, amended, reported favorably _ Do Pass.
February 1, 2010, read second time, amended, ordered engrossed.
Digest Continued
the gift and informs the legislative person the cost of the gift the lobbyist wants to make at the time the lobbyist seeks consent to the gift. Provides that a lobbyist may not pay expenses for out-of-state travel for a legislative person with exceptions for: (1) "public policy meetings" approved by speaker of the house of representatives or the president pro tempore of the senate; or (2) if the expenses are associated with the legislative person's service as an officer, member of the board of directors, employee, or independent contractor of the person paying the expenses. Provides that the definition of a legislative branch "lobbyist" does not include public officials, public employees, or a national organization established for the education and support of legislators, legislative staff, or related government employees. Requires expenditures that can be "clearly and reasonably" attributed to a particular legislative person to be reported with respect to that legislative person. Requires that a lobbyist's expenditure report must include expenses for a function or activity to which all of any of the following are invited: (1) members of the general assembly; (2) members of the house of representatives; (3) members of the senate; (4) members of a standing or other committee established by the rules of the house of representative or senate; (4) members of a study committee; or (5) members of a caucus of the house of representatives or the senate. Establishes rules for reporting an expenditure made by more than one lobbyist, the reporting of expenditures with respect to a particular legislative person, and allocation of expenditures made with respect to several legislative persons. Changes the time during which a lobbyist must report certain expenditures with a legislator from seven days to 15 business days. Increases the daily penalty for failure to file lobbyist registration statements and activity reports from $10 per day to $100 per day. Increases the maximum penalty for failure to file lobbyist registration statements and activity reports from $100 to $4,500. Defines "conflict of interest" for lobbyists. Requires lobbyists to file with the Indiana lobby registration commission a description of the procedure that will be utilized if conflicts arise. Requires the procedure to be incorporated into the lobbyist's contract with clients. Requires the lobby registration commission to make available on the Internet all reports, statements, and documents filed with the commission and all manuals, indices, summaries, and other documents the commission is required to compile, publish, or maintain. Requires "legislative liaisons" of agencies in the executive branch of state government and of state educational institutions to report certain expenditures annually to the lobby registration commission. Provides that legislators who are candidates for reelection in 2010 may not become a lobbyist or legislative liaison before January 1, 2012 and that beginning with this date, a legislator must wait 365 days after leaving the general assembly before becoming a lobbyist or legislative liaison. Provides that state elected official may not use the state elected official's name or likeness in an audio, video, or newspaper publication paid for entirely or in part with appropriations made by the general assembly, regardless of the source of the money. Provides that this prohibition does not apply to a communication made by the governor concerning the public health or safety or by a state elected official for a publication that has a "compelling public policy reason" that is approved by the budget committee and the budget agency. Provides that a state elected official may use the title of the office the state elected official holds in a communication. Provides that elected state officers and candidates for state office may not raise funds during same period during long session when legislators are barred from fundraising. Removes a requirement that candidates for the general assembly file candidate documents with the circuit court clerk. Requires the circuit court clerk to provide copies of legislative candidacy documents from the election division's or the secretary of state's website to person requesting to see these documents. Makes technical changes. Repeals superseded statutes.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
(1) The name of the member's or candidate's employer and the employer of the member's or candidate's spouse and the nature of the employer's business. The house of representatives and senate need not be listed as an employer.
(2) The name of any sole proprietorship owned or professional practice operated by the member or candidate or the member's or candidate's spouse and the nature of the business.
(3) The name of any partnership of which the member or
candidate or the member's or candidate's spouse is a member and
the nature of the partnership's business.
(4) The name of any corporation of which the member or
candidate or the member's or candidate's spouse is an officer or
director and the nature of the corporation's business. Churches
need not be listed.
(5) The name of any corporation in which the member or
candidate or the member's or candidate's spouse or
unemancipated children own stock or stock options having a fair
market value in excess of ten thousand dollars ($10,000). No time
or demand deposit in a financial institution or insurance policy
need be listed.
(6) The name of any state agency or the supreme court of Indiana
which licenses or regulates the following:
(A) The member's or candidate's or the member's or
candidate's spouse's profession or occupation.
(B) Any proprietorship, partnership, corporation, or limited
liability company listed under subdivision (2), (3), or (4) and
the nature of the licensure or regulation.
The requirement to file certain reports with the secretary of state
or to register with the department of state revenue as a retail
merchant, manufacturer, or wholesaler shall not be considered as
licensure or regulation.
(7) The name of any person whom the member or candidate
knows to have been a lobbyist in the previous calendar year and
knows to have purchased any of the following:
(A) From the member or candidate, the member's or
candidate's sole proprietorship, or the member's or candidate's
family business, goods or services for which the lobbyist paid
in excess of one hundred dollars ($100).
(B) From the member's or candidate's partner, goods or
services for which the lobbyist paid in excess of one thousand
dollars ($1,000).
This subdivision does not apply to purchases made after
December 31, 1998, by a lobbyist from a legislator's retail
business made in the ordinary course of business at prices that are
available to the general public. For purposes of this subdivision,
a legislator's business is considered a retail business if the
business is a retail merchant as defined in IC 6-2.5-1-8.
(8) The name of any person or entity from whom the member or
candidate received the following:
(A) Any gift of cash from a lobbyist.
(A) a member of a partnership or limited liability company;
(B) an officer or a director of a corporation; or
(C) a manager of a limited liability company;
of which the member of or candidate for the general assembly is a partner, an officer, a director, a member, or an employee, and a description of the legislative matters which are the object of the lobbyist's activity.
(b) Before any person who is not a member of the general assembly files the person's declaration of candidacy, declaration of intent to be a write-in candidate, or petition of nomination for office or is selected as a candidate for the office under IC 3-13-1 or IC 3-13-2, the person shall file with the clerk of the house or secretary of the senate, respectively, the same written statement of economic interests for the preceding calendar year that this section requires members of the general assembly to file.
(c) Any member of or candidate for the general assembly may file an amended statement upon discovery of additional information required to be reported.
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2010]: Sec. 9.5. (a) As used in this section, "honorarium" means
a payment of money for an appearance or a speech. The term does
not include payment or reimbursement of travel expenses.
(b) A member of the general assembly may not receive an
honorarium for an appearance or a speech made or given in the
member's capacity as a legislator.
(1) Willful failure to file a required statement by the deadline prescribed in this chapter or knowingly filing a false statement or violation of section 9 or 10 of this chapter.
(2) Knowing violation of section 9.5 of this chapter.
(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.
(b) The term does not include
(1) The general assembly.
(2) The house of representatives.
(3) The senate.
(4) A standing or other committee established by the rules of the house of representatives or the senate.
(5) A committee established by statute or by the legislative council. An individual who:
(A) is a member of a committee described in this subdivision; and
(B) is not a member of the general assembly;
is not considered to be a member of a legislative body for purposes of this article.
(6) A caucus of the house of representatives or the senate.
meaning set forth in IC 5-14-7-3.
(1) A member.
(2) A candidate.
(3) An officer of the general assembly.
(4) An employee
(5) A member of the immediate family of anyone described in subdivision (1), (2), (3), or (4). A lobbyist who is a close relative of a legislative person is not considered a legislative person.
(6) A paid consultant of the general assembly.
(7) An agency of the general assembly.
(1) engages in lobbying; and
(2) in any registration year, receives or expends an aggregate of at least five hundred dollars ($500) in compensation or expenditures reportable under this article for lobbying, whether the compensation or expenditure is solely for lobbying or the lobbying is incidental to that individual's regular employment.
(b) The following are not considered lobbyists:
(1) A public employee or public official.
(2) The National Conference of State Legislatures.
(3) The National Conference of Insurance Legislators.
(4) The American Legislative Exchange Council.
(5) Women in Government.
(6) The Council of State Governments.
(7) The National Black Caucus of State Legislators.
(8) Any other national organization established for the education and support of legislators, legislative staff, or related government employees.
IC 2-7-3-3(a) and IC 2-7-7-8, refers to a member of the general
assembly.
(b) Subject to subsections (c) and (d), the commission shall impose a late registration fee of
(c) The late registration fee shall not exceed
(d) The commission may waive the late registration fee if the commission determines that the circumstances make imposition of the fee inappropriate.
(b) Subject to subsections (c) and (d), the commission shall impose a penalty of
(c) The penalty shall not exceed
(d) The commission may waive the penalty if the commission determines that the circumstances make imposition of the penalty inappropriate.
(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
(3) Subject to section 3.5 of this chapter, a statement of
(A) expenditure for entertainment (including meals and drink); or
(B) gift;
that
(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.
(b) 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.
(c) A lobbyist shall file a copy of a report required by this section with all the following:
(1) The commission.
(2) The legislative person with respect 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.
(d) 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.
(e) 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 (c) relating to that member or
candidate. The compilation must provide the following information
to the member or candidate for each gift reported under subsection
(c):
(1) A description of the gift.
(2) The amount of the gift.
(3) The name of the lobbyist making the gift.
(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) 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 subdivision may not be allocated and reported with respect to a particular legislative person.
(d) 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 must be determined and not the amount that each lobbyist contributed to the 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) An activity report may not report a contribution (as defined
in IC 3-5-2-15).
(b) As used in this section, "purchase" refers to a purchase of goods or services for which the lobbyist paid more than one hundred dollars ($100) from any of the following:
(1) A member or candidate.
(2) A member's or candidate's sole proprietorship.
(3) A member's or candidate's family business, regardless of the manner of the family business's legal organization.
(c) A lobbyist shall file a written report with respect to a member or candidate whenever the lobbyist makes a purchase.
(d) A report required by this section must state the following:
(1) The name of the lobbyist making the purchase.
(2) A description of the purchase.
(3) The amount of the purchase.
(e) A lobbyist shall file a copy of a report required by this
section with all the following:
(1) The commission.
(2) The member or candidate with respect to whom the report
is made.
(3) The principal clerk of the house of representatives, if the
member or candidate is a member of, or a candidate for
election to, the house of representatives.
(4) The secretary of the senate, if the member or candidate is
a member of, or candidate for election to, the senate.
(f) A lobbyist shall file a report required by this section not later
than fifteen (15) business days after making the purchase. 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.
(g) 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 (e) relating to that member or
candidate. The compilation must provide the following information
to the member or candidate for each purchase:
(1) A description of the purchase.
(2) The amount of the purchase.
(3) The name of the lobbyist making the purchase.
(1) Reports, statements, other documents required to be filed under this article.
(2) Manuals, indices, summaries, and other documents the commission is required to compile, publish, or maintain under this article.
(b) The commission shall make copies of all reports required to be made by legislative liaisons under IC 5-14-7 available on the Internet.
inspecting and auditing any statement or report if the commission has
reason to believe that a violation of this chapter may have occurred.
(b) Verifying documents under this section while in the possession
of the commission are confidential.
(b) After December 31, 2011, an individual described in subsection (a) may not be:
(1) registered as a lobbyist under this article; or
(2) employed as a legislative liaison;
during the period described in subsection (c).
(c) The period referred to in subsection (b):
(1) begins on the day the individual ceases to be a member of the general assembly; and
(2) ends three hundred sixty-five (365) days after the date the individual ceases to be a member of the general assembly.
(d) Notwithstanding subsection (b), an individual described in subsection (a) who is a candidate for nomination for election to the general assembly in 2010 may not be:
(1) registered as a lobbyist under this article; or
(2) employed as a legislative liaison;
before January 1, 2012.
(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.
NOVEMBER 1, 2010]: Sec. 9. (a) This section does not apply to the
following:
(1) Expenses associated with travel outside Indiana for any
purpose that is paid for by an organization or corporation of
which the legislative person or the legislative person's spouse
is an officer, member of the board of directors, employee, or
independent contractor.
(2) Travel expenses of a legislative person attending a public
policy meeting if:
(A) the legislative person's sole purpose for attending the
meeting is to serve as a speaker or other key participant in
the meeting; and
(B) the speaker of the house of representatives or the
president pro tempore of the senate approves the payment
of the travel expenses in writing.
(b) As used in this section, "travel expenses" includes expenses
for transportation, lodging, meals, registration fees, and other
expenses associated with travel.
(c) Except as provided in subsection (a), a lobbyist may not pay
or reimburse for transportation, lodging, meals, registration fees,
or other expenses associated with the travel of a legislative person
outside Indiana for any purpose.
(b) As used in this section, "conflict of interest" means a circumstance where:
(1) the representation of a client will be directly adverse to another client; or
(2) there is a significant risk that the representation of one (1) or more clients will be materially limited by the lobbyist's responsibilities to:
(A) another client; or
(B) a personal interest of the lobbyist.
(c) A lobbyist shall file with the commission a written statement that describes the procedures that the lobbyist and the lobbyist's client will follow if the lobbyist or the client determines at any time that the lobbyist's representation of the client might involve a conflict of interest. The lobbyist shall file the statement with the commission at the time the lobbyist files the lobbyist's annual
registration statement under IC 2-7-2. If the lobbyist's activity
under this chapter is governed by the Rules of Professional
Conduct of the Indiana supreme court, the lobbyist shall file a
statement to that effect with the commission.
(d) The statement filed under subsection (c) must be included in
the agreement between the lobbyist and the client for the lobbyist's
services as a lobbyist.
(e) A lobbyist may not represent a client if the representation
involves a conflict of interest except as is provided in the statement
filed by the lobbyist under subsection (c).
(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.
(1) a member of the general assembly; or
(2) a candidate's committee of a member of the general assembly;
with respect to an office other than a legislative office or a state office to which the member seeks election.
(b) As used in this section, "affected person" refers to any of the following:
(1) An individual who holds a legislative office.
(2) A candidate for a legislative office.
(3) An individual who holds a state office.
(4) A candidate for a state office.
(c) As used in this section, "prohibited period" means the period:
(1) beginning on the day in January in each odd-numbered year the general assembly reconvenes under IC 2-2.1-1-2; and
(2) through the day the general assembly adjourns sine die in an odd-numbered year under IC 2-2.1-1-2.
(d) During the prohibited period, an affected person, an affected person's candidate's committee, and a legislative caucus committee may not do any of the following:
(1) Solicit campaign contributions.
(2) Accept campaign contributions.
(3) Conduct other fundraising activities. This subdivision does not prohibit an affected person from participating in party activities conducted by a regular party committee.
(b) The circuit court clerk shall, at the request of any person, furnish the person a copy of a report, notice, or other instrument required by this article for a candidate for a legislative office from electronic records maintained on the secretary of state's or election's division's web site. The circuit court clerk shall charge for a copy of records furnished under this subsection as provided in IC 5-14-3.
(1) A communication made by the governor concerning the public health or safety.
(2) A communication:
(A) that a compelling public policy reason justifies the state officer to make; and
(B) the expenditure for which is approved by the budget agency after an advisory recommendation from the budget committee.
(b) This section does not prohibit a state officer from using in a communication the title of the office the state officer holds.
(c) As used in this section, "communication" refers only to the
following:
(1) An audio communication.
(2) A video communication.
(3) A print communication in a newspaper (as defined in
IC 5-3-1-0.4).
(d) A state officer may not use the state officer's name or
likeness in a communication paid for entirely or in part with
appropriations made by the general assembly, regardless of the
source of the money.
Chapter 7. Legislative Liaisons
Sec. 1. Except as provided in section 2 of this chapter, the definitions in the following apply in this chapter:
(1) IC 2-7-1.
(2) IC 4-2-6-1.
Sec. 2. As used in this chapter, "commission" refers to the Indiana lobby registration commission established by IC 2-7-1.6.
Sec. 3. As used in this chapter, "legislative liaison" refers to an employee of either of the following who receives at least ten percent (10%) of the individual's annual compensation to engage in lobbying:
(1) An agency.
(2) A state educational institution (as defined in IC 21-7-13-32).
Sec. 4. (a) An agency or state educational institution that employs a legislative liaison shall annually file a report stating each:
(1) expenditure for entertainment (including meals and drink); or
(2) 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 calendar year.
(b) A report under this section may not include the following:
(1) Items provided under a statute or from a state agency for redistribution to constituents.
(2) Items provided during the performance of a legislative person's official duties, including the legislative person's service as a member of 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.
Sec. 5. (a) A report required by this chapter shall:
(1) be filed with the commission not later than November 30 of each year; and
(2) cover the period from November 1 of the previous year through October 31 of the year in which the report is filed.
(b) The first report required by this chapter shall:
(1) be filed with the commission not later than November 30, 2011; and
(2) cover the period from November 1, 2010 through October 31, 2011.
Sec. 6. If a legislative liaison has no expenditures to report for any legislative person, a statement of that fact is required and is sufficient to comply with the reporting requirements of this chapter.
Sec. 7. (a) The commission shall post reports received under this chapter on the commission's web site.
(b) If the commission does not receive a report from an agency or a state educational institution under this chapter, the commission shall notify the agency or state educational institution and post a copy of the notice on the commission's web site.
; (10)SB0114.3.34. --> SECTION 34. THE FOLLOWING ARE REPEALED [EFFECTIVE JANUARY 1, 2011]: IC 2-7-1-1.5; IC 2-7-1-15; IC 2-7-1-17; IC 2-7-3-6.
