Bill Text: IN SB0302 | 2011 | Regular Session | Amended
Bill Title: Nepotism.
Sponsorship: Partisan Bill (Republican 2)
Status: (Engrossed - Dead) 2011-03-28 - First reading: referred to Committee on Government and Regulatory Reform [SB0302 Detail]
Download: Indiana-2011-SB0302-Amended.html
Citations Affected: IC 5-11; IC 36-1.
Synopsis: Nepotism. Prohibits a relative of an executive, a member of
the legislative body, or a member of the fiscal body (public official) of
a county, city, town, or township (local unit) from being employed by
the local unit. Prohibits an individual who is a relative of: (1) an elected
officer (not including an executive or member of the legislative or
fiscal body); or (2) an employee; of a local unit from being employed
by the local unit in a position that would put the elected officer or
employee in a direct line of supervision over the individual. Specifies
that an employee of a local unit is not required by these provisions to
be terminated or reassigned from any position held by that individual
before July 1, 2011, but provides that this grandfathering provision
expires January 1, 2015. Provides that a unit can enter into or renew a
contract for (1) the procurement of goods and services; or (2) a contract
for public works; with a relative of a public official or a business entity
in which a relative has an ownership interest if the public official
makes full written disclosure and satisfies any other requirements of
the public purchasing law or the public works law. Requires each
public official and elected officer of the local unit to annually certify in
writing, subject to the penalties for perjury, that the official or officer
is in compliance with the nepotism law and submit the certification to
the executive of the local unit. Requires the executive of the local unit
to file with the annual personnel report filed with the state board of
accounts, a statement: (1) certified under the penalties for perjury; and
(2) that the unit has implemented a policy that complies with the
nepotism law.
Effective: July 1, 2011.
January 6, 2011, read first time and referred to Committee on Local Government.
February 10, 2011, amended, reported favorably _ Do Pass.
February 21, 2011, read second time, amended, ordered engrossed.
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A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
state board of accounts. However, no more than one (1) report covering
the same officers, employees, and agents need be made from the state
or any county, city, town, township, or school unit in any one (1) year.
(b) This subsection applies to a unit (as defined in IC 36-1-2-13).
The report must include a statement by the executive (as defined
in IC 36-1-2-5) of the unit, certified under the penalties for perjury,
that the unit has implemented a policy that complies with
IC 36-1-20. The executive (as defined in IC 36-1-2-5) and the unit
are subject to the penalties set forth in IC 36-1-20 for failure to
comply with this subsection.
Chapter 20. Employment of Relatives; Contracting With Relatives
Sec. 1. This chapter applies only to a unit.
Sec. 2. This chapter does not apply to the following:
(1) An individual who is a vendor or employed by a vendor for a purchase of mowing services or property maintenance services.
(2) An individual who is a member of a paid fire department or a volunteer fire department that renders fire protection services to the unit.
Sec. 3. For purposes of this chapter, the performance of the duties of a precinct election officer (as defined in IC 3-5-2-40.1) that are imposed by IC 3 is not considered employment by a unit.
Sec. 4. As used in this chapter, "employee" means an individual who is employed by a unit on a full-time, a part-time, a temporary, an intermittent, or an hourly basis.
Sec. 5. As used in this chapter, "public official" means:
(1) the executive;
(2) a member of the legislative body; or
(3) a member of the fiscal body.
Sec. 6. (a) As used in this chapter, "relative" means any of the following:
(1) A husband.
(2) A wife.
(3) A father, grandfather, or stepfather.
(4) A mother, grandmother, or stepmother.
(5) A son, grandson, stepson, or son-in-law.
(6) A daughter, granddaughter, stepdaughter, or daughter-in-law.
(7) A brother or stepbrother.
(8) A sister or stepsister.
(b) A relative by adoption, half-blood, marriage, or remarriage is considered a relative of whole kinship for purposes of this chapter.
Sec. 7. (a) As used in this chapter, "relative" means any of the following:
(1) A husband.
(2) A wife.
(3) A father, grandfather, or stepfather.
(4) A mother, grandmother, or stepmother.
(5) A son, grandson, stepson, or son-in-law.
(6) A daughter, granddaughter, stepdaughter, or daughter-in-law.
(7) A brother or stepbrother.
(8) A sister or stepsister.
(9) An aunt.
(10) An uncle.
(11) A niece.
(12) A nephew.
(13) A first cousin.
(b) A relative by adoption, half-blood, marriage, or remarriage is considered a relative of whole kinship for purposes of this chapter.
Sec. 8. (a) An individual who is a relative of a public official may not be employed by the unit.
(b) An individual who is a relative of:
(1) an elected officer, not including a public official; or
(2) an employee;
of a unit may not be employed in a position in which the elected officer or employee is in a direct line of supervision over the individual.
Sec. 9. (a) A unit may enter into a contract or renew a contract for the procurement of goods and services or a contract for public works with:
(1) an individual who is a relative of a public official; or
(2) a business entity that is wholly or partially owned by a relative of a public official;
if the unit and the public official satisfy the requirements of this section.
(b) A unit may enter into a contract or renew a contract with an individual or business entity described in subsection (a) if:
(1) the public official files with the unit a full disclosure, which must:
(A) be in writing;
(B) describe the contract or purchase to be made by the unit;
(C) describe the relationship that the public official has to the business entity or individual that contracts or purchases;
(D) be affirmed under penalty of perjury;
(E) be submitted to the unit and be accepted by the unit in a public meeting of the unit prior to final action on the contract or purchase; and
(F) be filed not later than fifteen (15) days after final action on the contract or purchase with:
(i) the state board of accounts; and
(ii) the clerk of the circuit court in the county where the unit takes final action on the contract or purchase; and
(2) the unit satisfies any other requirements under IC 5-22 or IC 36-1-12.
(c) A public official shall also comply with the disclosure provisions of IC 35-44-1-3, if applicable.
(d) This section does not affect the initial term of a contract in existence at the time the term of office of the public official of the unit begins.
Sec. 10. (a) This chapter does not require the termination or reassignment of any employee of a unit from any position held by that individual before July 1, 2011.
(b) This subsection expires January 1, 2015.
Sec. 11. (a) Each public official and elected officer of the unit shall annually certify in writing, subject to the penalties for perjury, that the official or officer is in compliance with this chapter. An official or officer shall submit the certification to the executive of the unit not later than December 31 of each year.
(b) The annual report filed by a unit with the state board of accounts under IC 5-11-13-1 must include a statement by the executive of the unit that the unit has implemented a policy that complies with this chapter. The executive's statement must be certified under penalties for perjury.
Sec. 12. If the state board of accounts finds that a unit has not implemented a policy that complies with this chapter, the state board of accounts shall forward the information to:
(1) the prosecuting attorney of each county where the unit is
located; and
(2) the department of local government finance.
Sec. 13. If a unit fails to comply with this chapter:
(1) the executive of the unit may be subject to prosecution for
perjury under IC 35-44-2-1; and
(2) the department of local government finance may not
approve:
(A) the unit's budget; or
(B) any additional appropriations for the unit;
