Introduced Version
SENATE BILL No. 364
_____
DIGEST OF INTRODUCED BILL
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.
Synopsis: Government ethics. Includes the legislative council and the
budget committee in the definition of "legislative body" in the lobbyist
regulation statute. Provides that a national organization established by
an association of persons that includes members of state legislatures or
by a political party and whose primary purpose is the education and
support of legislative leadership, legislators, legislative staff, or related
government employees is not considered a lobbyist. Defines "reporting
year" for purposes of lobbyist reporting of expenditures and gifts.
Requires a lobbyist's report of purchases or gifts must be filed with the
lobby registration commission (commission) electronically. Requires
the commission to forward a copy of such a report electronically to the
affected legislator and the secretary of the senate or the principal clerk
of the house of representatives. Provides that such a report is
confidential until ten days after the commission forwards the report.
Provides that if such a report is corrected within the period of
confidentiality, the report remains confidential. Provides that a
lobbyist's activity report must report expenditures for a function or
activity to which a legislative body is invited. Deletes language about
the reporting of expenditures or gifts relating to the performance of a
legislative person's official duties. Provides that the prohibition of
lobbyist payment of a legislative person's out of state travel expenses
(Continued next page)
Effective: Upon passage; November 1, 2010 (retroactive); July 1,
2011.
Miller
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.
Introduced
First Regular Session 117th General Assembly (2011)
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
this style type.
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
this style type reconciles conflicts
between statutes enacted by the 2010 Regular Session of the General Assembly.
SENATE BILL No. 364
A BILL FOR 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 2-7-1-7.2; (11)IN0364.1.1. -->
SECTION 1. IC 2-7-1-7.2, AS ADDED BY P.L.58-2010, SECTION
9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
NOVEMBER 1, 2010 (RETROACTIVE)]: Sec. 7.2. "Legislative body"
refers to any of the following:
(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.
(5) (7) 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) (8) A caucus of the house of representatives or the senate.
SOURCE: IC 2-7-1-10; (11)IN0364.1.2. -->
SECTION 2. IC 2-7-1-10, AS AMENDED BY P.L.58-2010,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
NOVEMBER 1, 2010 (RETROACTIVE)]: Sec. 10. (a) "Lobbyist"
means any person who:
(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 for by:
(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.
SOURCE: IC 2-7-1-18; (11)IN0364.1.3. -->
SECTION 3. IC 2-7-1-18 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
NOVEMBER 1, 2010 (RETROACTIVE)]: Sec. 18. "Reporting year"
means the period beginning November 1 of a year through October
31 of the following year.
SOURCE: IC 2-7-3-2; (11)IN0364.1.4. -->
SECTION 4. IC 2-7-3-2, AS AMENDED BY P.L.58-2010,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
NOVEMBER 1, 2010 (RETROACTIVE)]: Sec. 2. (a) One (1) activity
report shall be filed not later than May 31, covering the period from
November 1 of the
immediately preceding calendar reporting year
through April 30. The other activity report shall be filed not later than
November 30, covering the period from May 1 through October 31.
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.
SOURCE: IC 2-7-3-3; (11)IN0364.1.5. -->
SECTION 5. IC 2-7-3-3, AS AMENDED BY P.L.58-2010,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
NOVEMBER 1, 2010 (RETROACTIVE)]: Sec. 3. (a) The activity
reports of each lobbyist shall include the following information:
(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
calendar reporting year, if the expenditures and gifts
are made by the lobbyist or the lobbyist's agent to benefit a
specific legislative person.
(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
second semiannual report
required to be filed not later
than November 30, 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.
SOURCE: IC 2-7-3-3.3; (11)IN0364.1.6. -->
SECTION 6. IC 2-7-3-3.3, AS ADDED BY P.L.58-2010, SECTION
18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: Sec. 3.3. (a) This section does not apply to gifts made between
close relatives.
(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 a copy of a report required by this section
electronically with all the following:
(1) the commission. The commission shall promptly forward
an electronic copy of the report to the following:
(2) (1) The legislative electronic mail address of the legislative
person to whom the report is made.
(3) (2) The electronic mail address designated by 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) (3) The electronic mail address designated by the secretary
of the senate, if the legislative person is a member of, or candidate
for election to, the senate.
(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
filed with the commission. received by:
(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.
SOURCE: IC 2-7-3-3.5; (11)IN0364.1.7. -->
SECTION 7. IC 2-7-3-3.5, AS ADDED BY P.L.58-2010, SECTION
19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
NOVEMBER 1, 2010 (RETROACTIVE)]: Sec. 3.5. (a) If an
expenditure for entertainment (including meals and drink) or a gift can
clearly and reasonably be attributed to a particular legislative person,
the expenditure must be reported with respect to that particular
legislative person.
(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 is invited.
Expenditures reported for a function or activity described in this
subsection 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 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).
SOURCE: IC 2-7-3-7; (11)IN0364.1.8. -->
SECTION 8. IC 2-7-3-7, AS ADDED BY P.L.58-2010, SECTION
20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: Sec. 7. (a) This section does not apply to a purchase by a
lobbyist from a member's or candidate's business made in the ordinary
course of business at prices that are available to the general public.
(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
electronically with all the following:
(1) the commission. The commission shall promptly forward
an electronic copy to the following:
(2) (1) The legislative electronic mail address of the member or
a designated electronic mail address of the candidate with
respect to whom the report is made.
(3) (2) The electronic mail address designated by 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) (3) The electronic mail address designated by 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. received by:
(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.
SOURCE: IC 2-7-5-9; (11)IN0364.1.9. -->
SECTION 9. IC 2-7-5-9, AS ADDED BY P.L.58-2010, SECTION
27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: 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 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).
SOURCE: IC 3-9-3-4; (11)IN0364.1.10. -->
SECTION 10. IC 3-9-3-4 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Money received by a
candidate or committee as a contribution may be used only:
(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.
SOURCE: IC 4-2-6-15; (11)IN0364.1.11. -->
SECTION 11. IC 4-2-6-15, AS AMENDED BY P.L.114-2010,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 15. (a) This section does not apply to the
following:
(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
or video communication
intended for
dissemination to the general public; or
(2) A video communication.
(3) (2) 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.
(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.
SOURCE: IC 4-2-7-6; (11)IN0364.1.12. -->
SECTION 12. IC 4-2-7-6, AS ADDED BY P.L.222-2005,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 6. (a) This section applies if the inspector general
finds evidence of misfeasance, malfeasance, nonfeasance,
misappropriation, fraud, or other misconduct that has resulted in a
financial loss to the state or in an unlawful benefit to an individual in
the conduct of state business.
(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.
SOURCE: IC 4-6-3-2; (11)IN0364.1.13. -->
SECTION 13. IC 4-6-3-2, AS AMENDED BY P.L.111-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 2. (a) The attorney general shall have charge of
and direct the prosecution of all civil actions that are brought in the
name of the state of Indiana or any state agency.
(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.
SOURCE: IC 5-10.3-3-7; (11)IN0364.1.14. -->
SECTION 14. IC 5-10.3-3-7, AS AMENDED BY P.L.107-2010,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 7. The board shall do all of the following:
(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
him the member in the annuity
savings account in each investment program under IC 5-10.2-2.
(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.
SOURCE: IC 5-10.4-3-6; (11)IN0364.1.15. -->
SECTION 15. IC 5-10.4-3-6, AS AMENDED BY P.L.107-2010,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 6. (a) A trustee shall give bond as specified
periodically by the state board of finance.
(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.
SOURCE: IC 5-11-5-1; (11)IN0364.1.16. -->
SECTION 16. IC 5-11-5-1, AS AMENDED BY P.L.176-2009,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 1. (a) Whenever an examination is made under
this article, a report of the examination shall be made. The report must
include a list of findings and shall be signed and verified by the
examiner making the examination. A finding that is critical of an
examined entity must be based upon one (1) of the following:
(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.
SOURCE: IC 5-11-6-1; (11)IN0364.1.17. -->
SECTION 17. IC 5-11-6-1, AS AMENDED BY P.L.176-2009,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 1. (a) The state examiner, personally or through
the deputy examiners, field examiners, or private examiners, upon the
petition of twenty-five (25) interested taxpayers showing that effective
local relief has not and cannot be obtained after due effort, shall make
the inquiries, tests, examinations, and investigations that may be
necessary to determine whether:
(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.
SOURCE: IC 5-11-6-3; (11)IN0364.1.18. -->
SECTION 18. IC 5-11-6-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. If any examination
or investigation made by the state examiner personally or through a
deputy examiner, field examiner, or private examiner under of this
chapter or of under any other statute discloses:
(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.
SOURCE: 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.
; (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.
SOURCE: ; (11)IN0364.1.20. -->
SECTION 20.
An emergency is declared for this act.