Bill Text: IN SB0559 | 2011 | Regular Session | Enrolled
Bill Title: Conflict of interest.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2011-05-18 - Effective 07/01/2011 [SB0559 Detail]
Download: Indiana-2011-SB0559-Enrolled.html
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
AN ACT to amend the Indiana Code concerning criminal law and procedure.
(1) "Dependent" means any of the following:
(A) The spouse of a public servant.
(B) A child, stepchild, or adoptee (as defined in IC 31-9-2-2) of a public servant who is:
(i) unemancipated; and
(ii) less than eighteen (18) years of age.
(C) An individual more than one-half (1/2) of whose support is provided during a year by the public servant.
(2) "Governmental entity served by the public servant" means the immediate governmental entity being served by a public servant.
(3) "Pecuniary interest" means an interest in a contract or purchase if the contract or purchase will result or is intended to result in an ascertainable increase in the income or net worth of:
(A) the public servant; or
(B) a dependent of the public servant who:
(i) is under the direct or indirect administrative control of the public servant; or
(ii) receives a contract or purchase order that is reviewed, approved, or directly or indirectly administered by the public servant.
(1) has a pecuniary interest in; or
(2) derives a profit from;
a contract or purchase connected with an action by the governmental entity served by the public servant commits conflict of interest, a Class D felony.
(c) It is not an offense under this section if:
(1) The public servant or the public servant's dependent
receives compensation through salary or an employment
contract for:
(A) services provided as a public servant; or
(B) expenses incurred by the public servant as provided by
law.
(2) The public servant's interest in the contract or purchase
and all other contracts and purchases made by the
governmental entity during the twelve (12) months before the
date of the contract or purchase was two hundred fifty dollars
($250) or less.
(3) The contract or purchase involves utility services from a
utility whose rate structure is regulated by the state or federal
government.
(4) The public servant:
(A) acts in only an advisory capacity for a state supported
college or university; and
(B) does not have authority to act on behalf of the college
or university in a matter involving a contract or purchase.
(5) A public servant under the jurisdiction of the state ethics
commission (as provided in IC 4-2-6-2.5) obtains from the
state ethics commission, following full and truthful disclosure,
written approval that the public servant will not or does not
have a conflict of interest in connection with the contract or
purchase under IC 4-2-6 and this section. The approval
required under this subdivision must be:
(A) granted to the public servant before action is taken in
connection with the contract or purchase by the
governmental entity served; or
(B) sought by the public servant as soon after the contract
or purchase as the public servant becomes aware of the
facts that give rise to a question of conflict of interest.
(6) A public servant who makes a disclosure that meets the
requirements of subsection (d) or (e) and is:
(A) not a member or on the staff of the governing body
empowered to contract or purchase on behalf of the
governmental entity, and functions and performs duties for
the governmental entity unrelated to the contract or
purchase;
(B) appointed by an elected public servant;
(C) employed by the governing body of a school
corporation and the contract or purchase involves the
employment of a dependent or the payment of fees to a
dependent;
(D) elected; or
(E) a member of, or a person appointed by, the board of
trustees of a state supported college or university.
(7) The public servant is a member of the governing board of
a hospital organized or operated under IC 16-22-1 through
IC 16-22-5 or IC 16-23-1.
(d) A disclosure must:
(1) be in writing;
(2) describe the contract or purchase to be made by the
governmental entity;
(3) describe the pecuniary interest that the public servant has
in the contract or purchase;
(4) be affirmed under penalty of perjury;
(5) be submitted to the governmental entity and be accepted
by the governmental entity in a public meeting of the
governmental entity before final action on the contract or
purchase;
(6) be filed within fifteen (15) days after final action on the
contract or purchase with:
(A) the state board of accounts; and
(B) if the governmental entity is a governmental entity
other than the state or a state supported college or
university, the clerk of the circuit court in the county
where the governmental entity takes final action on the
contract or purchase; and
(7) contain, if the public servant is appointed, the written
approval of the elected public servant (if any) or the board of
trustees of a state supported college or university (if any) that
appointed the public servant.
(e) This subsection applies only to a person who is a member of,
or a person appointed by, the board of trustees of a state supported
college or university. A person to whom this subsection applies
complies with the disclosure requirements of this chapter with
respect to the person's pecuniary interest in a particular type of
contract or purchase which is made on a regular basis from a
particular vendor if the individual files with the state board of
accounts and the board of trustees a statement of pecuniary
interest in that particular type of contract or purchase made with
that particular vendor. The statement required by this subsection
must be made on an annual basis.
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 7. (a) As used in this section, "pecuniary interest"
has the meaning set forth in section 3(g) 3(a)(3) of this chapter.
(b) A person who knowingly or intentionally:
(1) obtains a pecuniary interest in a contract or purchase with an
agency within one (1) year after separation from employment or
other service with the agency; and
(2) is not a public servant for the agency but who as a public
servant approved, negotiated, or prepared on behalf of the agency
the terms or specifications of:
(A) the contract; or
(B) the purchase;
commits profiteering from public service, a Class D felony.
(c) This section does not apply to negotiations or other activities
related to an economic development grant, loan, or loan guarantee.
(d) This section does not apply if the person receives less than two
hundred fifty dollars ($250) of the profits from the contract or
purchase.
(e) It is a defense to a prosecution under this section that:
(1) the person was screened from any participation in the contract
or purchase;
(2) the person has not received a part of the profits of the contract
or purchase; and
(3) notice was promptly given to the agency of the person's
interest in the contract or purchase.
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