Bill Text: IN SB0364 | 2011 | Regular Session | Introduced
Bill Title: Government ethics.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-02-10 - Senator Simpson added as second author [SB0364 Detail]
Download: Indiana-2011-SB0364-Introduced.html
Citations Affected: IC 2-7; IC 3-9-3-4; IC 4-2; IC 4-4-11-15.1;
IC 4-6-3-2; IC 5-1.5-2-10; IC 5-10.3-3-7; IC 5-10.4-3-6; IC 5-11;
IC 5-13-12-3.1; IC 5-20-1-4.1; IC 8-10-1-7.1; IC 9-15-2-2.2;
IC 10-15-2-11; IC 14-12-1-10.1; IC 14-13-1-14.5; IC 15-13-2-13;
IC 21-11-9-3; IC 26-4-3-10; IC 27-1-29-27.1.
Effective: Upon passage; November 1, 2010 (retroactive); July 1, 2011.
January 11, 2011, read first time and referred to Committee on Rules and Legislative
Procedure.
Digest Continued
does not apply to an out of state function paid for by a lobbyist if all
members of a legislative body or all legislative persons from Indiana
attending the function are invited. Provides that money received by a
candidate or committee as a political contribution may not be used to
send a communication to an electronic mail address: (1) with a domain
name that contains "in.gov"; (2) of any agency in the legislative,
executive, or judicial branch of state government; or (3) of any political
subdivision. Redefines "communication" in the statute relating to
communications by state officers to refer to only audio and video
communications intended for dissemination to the general public or a
print communication in a newspaper. Provides that a communication
made before the effective date of the amendment that would not have
violated the statute under the amended definition of "communication"
is considered not to have violated the statute as in effect before the
amendment. Authorizes the inspector general to directly institute civil
proceedings against persons who have failed to pay civil penalties
imposed by the state ethics commission. Requires the state board of
accounts to provide to the inspector general (in addition to the attorney
general) copies of certain reports concerning: (1) malfeasance,
misfeasance, or nonfeasance in office by public officials or employees;
(2) fraud or misconduct with respect to public contracts; or (3)
unlawful expenditure or diversion of public money. Repeals or deletes
provisions in the statutes governing the following quasi-governmental
entities that give those entities the option of establishing a code of
ethics for their employees or being under the jurisdiction of the state
ethics commission (the state ethics commission statute provides that
these entities are "agencies" for purposes of the commission's
jurisdiction): (1) Indiana finance authority. (2) Indiana bond bank. (3)
Public employees' retirement fund. (4) Indiana state teachers'
retirement fund. (5) Board for depositories. (6) Indiana housing and
community development authority. (7) Ports of Indiana. (8) Bureau of
motor vehicles commission. (9) Indiana homeland security foundation.
(10) Indiana natural resources foundation. (11) Indiana White River
state park development commission. (12) State fair commission. (13)
State student assistance commission. (14) Indiana grain indemnity
corporation. (15) Indiana political subdivision risk management
commission.
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
offices and administration.
(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) The legislative council.
(6) The budget committee.
(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.
(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:
(A) established
(i) an association of persons that includes members of state legislatures; or
(ii) a political party; and
(B) whose primary purpose is the education and support of legislative leadership, legislators, legislative staff, or related government employees.
The commission shall provide a copy of an activity report to a member
of the general assembly at the request of the member.
(b) Subject to subsections (c) and (d), the commission shall impose
a penalty of not more than one hundred dollars ($100) per day for each
day that the person fails to file any report required by this chapter until
the report is filed.
(c) The penalty shall not exceed four thousand five hundred dollars
($4,500) per report.
(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 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
(4) A list of the general subject matter of each bill or resolution concerning which a lobbying effort was made within the registration period.
(5) 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
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 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
(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
(1) the principal clerk of the house of representatives; or
(2) the secretary of the senate;
whichever is applicable. If a report filed under this section is corrected not later than ten (10) business days after the report is filed under this subsection, the original filed report remains confidential.
(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.
(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
(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 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) (h) 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
(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
(1) the principal clerk of the house of representatives; or
(2) the secretary of the senate;
whichever is applicable. If a report filed under this section is corrected not later than ten (10) business days after the report is filed under this subsection, the original filed report remains confidential.
(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) 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 for or reimburse for travel expenses of a legislative person for travel outside Indiana for any purpose.
(d) This section does not prohibit a lobbyist for paying for the expenses for a function or activity occurring outside of Indiana to which all:
(1) members of a legislative body; or
(2) legislative persons;
from Indiana attending the function or activity are invited. A lobbyist shall report expenditures described in this subsection in the same manner as the lobbyist reports expenditures under IC 2-7-3-3.5(c).
(1) to defray any expense reasonably related to the person's or committee's:
(A) campaign for federal, state, legislative, or local office;
(B) continuing political activity; or
(C) activity related to service in an elected office;
(2) to make an expenditure to any national, state, or local committee of any political party or another candidate's committee;
or
(3) upon dissolution of a committee, in a manner permitted under
IC 3-9-1-12.
(b) Money received by a candidate or committee as a contribution
may not be used for primarily personal purposes by the candidate or by
any other person except as described in subsection (a).
(c) Money received by a candidate or committee as a
contribution may not be used to send a communication to an
electronic mail address:
(1) with a domain name that contains "in.gov";
(2) of any agency in the legislative, executive, or judicial
branch of state government; or
(3) of any political subdivision.
(c) (d) Money received as a contribution may be invested by a
committee in an account with a financial institution, savings
association, or credit union, or in any equity account. Any loss resulting
from an investment under this subsection must be reported as a
committee expenditure. Any gain resulting from an investment under
this subsection must be reported as income.
(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:
(1) an audio or video communication intended for dissemination to the general public; or
(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.
(e) A state officer may not use the state officer's name or likeness in
a communication paid for entirely or in part with:
(1) money from the securities division enforcement account
established under IC 23-19-6-1(f); or
(2) appropriations from the state general fund made under
IC 23-19-6-1(f).
(f) A communication made after March 16, 2010, that would not
have violated this section as in effect after June 30, 2011, is
considered not to have violated this section as in effect after March
16, 2010.
(b) If the inspector general finds evidence described in subsection (a), the inspector general shall certify a report of the matter to the attorney general and provide the attorney general with any relevant documents, transcripts, or written statements. Not later than one hundred eighty (180) days after receipt of the report from the inspector general, the attorney general shall do one (1) of the following:
(1) File a civil action (including an action upon a state officer's official bond) to secure for the state the recovery of funds misappropriated, diverted, missing, or unlawfully gained. Upon request of the attorney general, the inspector general shall assist the attorney general in the investigation, preparation, and prosecution of the civil action.
(2) Inform the inspector general that the attorney general does not intend to file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained. If the attorney general elects not to file a civil action, the attorney general shall return to the inspector general all documents and files initially provided by the inspector general.
(3) Inform the inspector general that the attorney general is diligently investigating the matter and after further investigation may file a civil action for the recovery of funds misappropriated, diverted, missing, or unlawfully gained. However, if more than three hundred sixty-five (365) days have passed since the inspector general certified the report to the attorney general, the
attorney general loses the authority to file a civil action for the
recovery of funds misappropriated, diverted, missing, or
unlawfully gained and shall return to the inspector general all
documents and files initially provided by the inspector general.
(c) If the inspector general has found evidence described in
subsection (a) and reported to the attorney general under subsection (b)
and:
(1) the attorney general has elected under subsection (b)(2) not to
file a civil action for the recovery of funds misappropriated,
diverted, missing, or unlawfully gained; or
(2) under subsection (b)(3) more than three hundred sixty-five
(365) days have passed since the inspector general certified the
report to the attorney general under subsection (b) and the
attorney general has not filed a civil action;
the inspector general may file a civil action for the recovery of funds
misappropriated, diverted, missing, or unlawfully gained.
(d) If the inspector general has found evidence described in
subsection (a), the inspector general may institute forfeiture
proceedings under IC 34-24-2 in a court having jurisdiction in a county
where property derived from or realized through the misappropriation,
diversion, disappearance, or unlawful gain of state funds may be
located, unless a prosecuting attorney has already instituted forfeiture
proceedings against that property.
(e) The inspector general may directly institute civil proceedings
against persons who have failed to pay civil penalties imposed by
the ethics commission under IC 4-2-6-12.
(b) In no instance under this section shall the state or a state agency be required to file a bond.
(c) This section does not affect the authority of prosecuting attorneys to prosecute civil actions.
(d) This section does not affect the authority of the inspector general to prosecute a civil action under IC 4-2-7-6 for the recovery of either or both of the following:
(1) Funds misappropriated, diverted, missing, or unlawfully gained.
(2) A civil penalty imposed by the state ethics commission under IC 4-2-6-12.
(e) The attorney general may bring an action to collect unpaid registration fees owed by a commercial dog broker or a commercial dog breeder under IC 15-21.
(1) In conjunction with the board of trustees of the Indiana state teachers' retirement fund, appoint a director.
(2) Appoint an actuary and employ or contract with employees, auditors, technical experts, legal counsel, and other service providers as it considers necessary to transact the business of the fund, without the approval of any state officer.
(3) Fix the compensation of persons:
(A) appointed or employed by the board; or
(B) who contract with the board.
(4) Establish a general office in Indianapolis for board meetings and for administrative personnel.
(5) Provide for the installation in the general office of a complete system of books, accounts including reserve accounts, and records in order to give effect to all the requirements of this article and to assure the proper operation of the fund.
(6) Provide for a report at least annually, before June 1, to each member of the amount credited to
(7) With the advice of the actuary, adopt actuarial tables and compile data needed for actuarial studies which are necessary for the fund's operation.
(8) Act on applications for benefits and claims of error filed by members.
(9) Have the accounts of the fund audited annually by the state board of accounts.
(10) Publish for the members a synopsis of the fund's condition.
(11) Adopt a budget on a calendar year or fiscal year basis that is sufficient, as determined by the board, to perform the board's duties and, as appropriate and reasonable, draw upon fund assets to fund the budget.
(12) Expend money, including income from the fund's investments, for effectuating the fund's purposes.
(13) Establish personnel programs and policies for its employees.
(14) Submit a report of its activities each year to the governor, the pension management oversight commission, and the budget committee before November 1 of each year. The report under this
subdivision must set forth a complete operating and financial
statement covering its operations during the most recent fiscal
year, including information on the following:
(A) Investment performance.
(B) Investment and administrative costs as a percentage of
assets under management.
(C) Investment asset allocation strategy.
(D) Member services.
(E) Member communications.
(15) Establish a code of ethics or decide to be under the
jurisdiction and rules adopted by the state ethics commission.
(16) (15) Cooperate with the board of trustees of the Indiana state
teachers' retirement fund to the extent practicable and feasible in:
(A) administering and investing the assets of the funds
administered by the board; and
(B) hiring investment managers, investment advisors, and
other service providers.
(b) The board shall do all the following:
(1) Act on an application for benefits.
(2) Provide the necessary forms for administering the fund.
(3) Establish records and accounts, which:
(A) provide the necessary information for an actuary's examination; and
(B) are sanctioned by the state board of accounts.
(4) Maintain individual records for each member containing the member's:
(A) name;
(B) date of birth;
(C) age at beginning service;
(D) service record;
(E) address;
(F) contributions to the fund;
(G) amounts withdrawn; and
(H) benefits paid;
and other items considered necessary.
(5) Employ or contract with employees, auditors, technical experts, legal counsel, and other service providers as the board considers necessary to transact the business of the fund without
the approval of any state officer, and fix the compensation of
those persons.
(6) Make rules as required to administer the fund.
(7) Publish a summary of the fund's condition.
(8) Provide for a report for each member, at least annually before
June 1, of the value of the amount credited to the member in the
annuity savings account in each investment program under
IC 5-10.2-2.
(9) Provide for the installation in the general office of a complete
system of:
(A) books;
(B) accounts, including reserve accounts; and
(C) records;
to give effect to all the requirements of this article and to ensure
the proper operation of the fund.
(10) Appoint an actuary.
(11) With the advice of the actuary, adopt actuarial tables and
compile data needed for actuarial studies necessary for the fund's
operation.
(12) Adopt a budget on a calendar year or fiscal year basis that is
sufficient, as determined by the board, to perform the board's
duties and, as appropriate and reasonable, draw upon fund assets
to fund the budget.
(13) Expend money, including income from the fund's
investments, for effectuating the fund's purposes.
(14) Establish personnel programs and policies for the employees
of the board.
(15) Submit a report of the board's activities to the governor, the
pension management oversight commission, and the budget
committee before November 1 of each year. The report under this
subdivision shall set forth a complete operating and financial
statement covering the board's operations during the most recent
fiscal year, including information on the following:
(A) Investment performance.
(B) Investment and administrative costs as a percentage of
assets under management.
(C) Investment asset allocation strategy.
(D) Member services.
(E) Member communications.
(16) Establish a code of ethics or decide to be under the
jurisdiction and rules adopted by the state ethics commission.
(17) (16) Cooperate with the board of trustees of the public
employees' retirement fund to the extent practicable and feasible
in:
(A) administering and investing the assets of the fund; and
(B) hiring investment managers, investment advisors, and
other service providers.
(1) Failure of the entity to observe a uniform compliance guideline established under IC 5-11-1-24(a).
(2) Failure of the entity to comply with a specific law.
A report that includes a finding that is critical of an examined entity must designate the uniform compliance guideline or the specific law upon which the finding is based. The reports shall immediately be filed with the state examiner, and, after inspection of the report, the state examiner shall immediately file one (1) copy with the officer or person examined, one (1) copy with the 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.
(1) any public contract has been regularly and lawfully executed and performed; or
(2) any public work, building, or structure has been or is being performed, built, or constructed in accordance with the terms and provisions of the contract, and in compliance with the plans and specifications, if any.
Upon a written petition of twenty-five (25) taxpayers, the state examiner may also require all plans, specifications, and estimates to be submitted to the state examiner for corrections and approval before a contract is awarded.
(b) The state examiner, deputy examiner, and any field examiner, when engaged in making an inquiry, test, examination, or investigation under subsection (a), is entitled to examine and inspect any public records, documents, data, contracts, plans, and specifications contained or found in any public office or other place pertaining or relating to the public contract or public work, building, or structure. In addition, subpoenas may be issued to witnesses to appear before the examiner in person or to produce books and papers for inspection and examination. The state examiner, deputy, field, and private examiner may administer oaths and examine witnesses under oath either orally or by interrogatories on all matters under examination and investigation. Under order of the state examiner, the examination may be transcribed, with the reasonable expense paid by the municipality in the same manner as the compensation of the field examiner is paid.
(c) The state examiner, the deputy examiner, and a field examiner may enforce attendance and answers to questions and interrogatories, as provided by law, with respect to examinations and investigations made by the state examiner, deputy examiner, field examiner, or private examiner of public offices.
(d) The state examiner, deputy examiner, any field examiner, and any private examiner, when making an examination or investigation under subsection (a), shall examine, inspect, and test the public works, buildings, or structures in the manner that the examiner sees fit to determine whether it is being performed, built, or constructed
according to the contract and plans and specifications.
(e) The state examiner shall file a report covering any examination
or investigation that discloses:
(1) fraud, collusion, misconduct, or negligence in the letting or
the execution of any public contract or in the performance of any
of the terms and conditions of any public contract; or
(2) any failure to comply with the terms or conditions of any
public contract in the construction of any public work, building,
or structure or to perform, build, or construct it according to the
plans and specifications, if any, provided in the contract;
that causes loss, injury, waste, or damage to the state, the municipality,
taxing or assessment district, other public entity, or to its citizens, if it
is enforceable by assessment or taxation.
(f) The report must meet the following requirements:
(1) The report must be made, signed, and verified in
quadruplicate by the examiner making the examination.
(2) The report shall be filed promptly with the state examiner.
After inspection of the report, the state examiner shall file a copy of the
report promptly with the attorney general and the inspector general.
(g) The attorney general shall diligently institute and prosecute civil
proceedings against any or all officers, individuals, and persons in the
form and manner that the attorney general determines will secure a
proper recovery to the state, municipality, taxing or assessment district,
or other public entity injured, defrauded, or damaged by the matters in
the report. These prosecutions may be made by the attorney general and
the recovery may be had, either upon public official bonds, contractors'
bonds, surety or other bonds, or upon individual liability, either upon
contract or in tort, as the attorney general determines is wise. No action
or recovery in any form or manner, or against any party or parties,
precludes further or additional action or recovery in any other form or
manner or against another party, either concurrently with or later found
necessary, to secure complete recovery and restitution with respect to
all matters exhibited, set out, or described in the report. The suits may
be brought in the name of the state on the relation of the attorney
general for the benefit of the state, or the municipality, taxing or
assessment district, or other public entity that may be proper. The
actions brought against any defendants may be joined, as to parties,
form, and causes of action, in the manner that the attorney general
decides.
(h) Any report described in this section or a copy duly certified by
the state examiner shall be taken and received in any and all courts of
this state as prima facie evidence of the facts stated and contained in
the reports.
(i) If an examination, investigation, or test is made without a petition
being first filed and the examination, investigation, or test shows that
the terms of the contract are being complied with, then the expense of
the examination, investigation, or test shall be paid by the state upon
vouchers approved by the state examiner from funds available for
contractual service of the state board of accounts. If such a report
shows misfeasance, malfeasance, or nonfeasance in public office or
shows that the terms of the plans and specifications under which a
contract has been awarded are not being complied with, it is unlawful
to make the report public until the report has been certified to the
attorney general.
(j) 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 all of 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 public funds was committed by
the officer or an employee of the office.
(k) After receiving a preliminary report under subsection (j), 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.
(l) In an action under subsection (k), the attorney general may attach
the defendant's property under IC 34-25-2.
(m) A preliminary report under subsection (j) is confidential until
the final report under subsection (e) is issued, unless the attorney
general institutes an action under subsection (k) on the basis of the
preliminary report.
(1) malfeasance, misfeasance, or nonfeasance in office or of any officer or employee;
(2) that any public money has been:
(A) unlawfully expended, either by having been expended for a purpose not authorized by law in an amount exceeding that authorized by law, or by having been paid to a person not lawfully entitled to receive it; or
(B) obtained by fraud or in any unlawful manner; or
(3) that any money has been wrongfully withheld from the public treasury;
a duly verified copy of the report shall be submitted by the state examiner to the attorney general, who shall institute and prosecute civil proceedings as provided in section 1 of this chapter, and to the inspector general.
; (11)IN0364.1.19. --> SECTION 19. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2011]: IC 4-4-11-15.1; IC 5-1.5-2-10; IC 5-13-12-3.1; IC 5-20-1-4.1; IC 8-10-1-7.1; IC 9-15-2-2.2; IC 10-15-2-11; IC 14-12-1-10.1; IC 14-13-1-14.5; IC 15-13-2-13; IC 21-11-9-3; IC 26-4-3-10; IC 27-1-29-27.1.
