Conflict of interest
Sec. 3. (a) A public servant who knowingly or intentionally:
(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.
(b) This section does not prohibit a public servant from receiving
compensation for:
(1) services provided as a public servant; or
(2) expenses incurred by the public servant as provided by law.
(c) This section does not prohibit a public servant from having a
pecuniary interest in or deriving a profit from a contract or purchase
connected with the governmental entity served under any of the
following conditions:
(1) If the:
(A) public servant is not a member or on the staff of the
governing body empowered to contract or purchase on
behalf of the governmental entity;
(B) functions and duties performed by the public servant for
the governmental entity are unrelated to the contract or
purchase; and
(C) public servant makes a disclosure under subsection
(d)(1) through (d)(6).
(2) If the contract or purchase involves utility services from a
utility whose rate structure is regulated by the state or federal
government.
(3) If the public servant:
(A) is an elected public servant or a member of the board of
trustees of a state supported college or university; and
(B) makes a disclosure under subsection (d)(1) through
(d)(6).
(4) If the public servant:
(A) was appointed by an elected public servant or the board
of trustees of a state supported college or university; and
(B) makes a disclosure under subsection (d)(1) through
(d)(7).
(5) If 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.
(6) If the public servant:
(A) is 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; and
(B) makes a disclosure under subsection (d)(1) through
(d)(6).
(7) If the public servant is under the jurisdiction of the state
ethics commission as provided in IC 4-2-6-2.5 and 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.
(d) A disclosure required by this section 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 prior to 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) The state board of accounts shall forward to the state ethics
commission a copy of all disclosures filed with the board under
IC 16-22-2 through IC 16-22-5, IC 16-23-1, or this section.
(f) The state ethics commission shall maintain an index of all
disclosures received by the commission. The index must contain a
listing of each public servant, setting forth the disclosures received
by the commission made by that public servant.
(g) A public servant has a pecuniary 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:
(1) the public servant; or
(2) a dependent of the public servant who:
(A) is under the direct or indirect administrative control of
the public servant; or
(B) receives a contract or purchase order that is reviewed,
approved, or directly or indirectly administered by the public
servant.
(h) It is a defense in a prosecution under this section that 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.
(i) Notwithstanding subsection (d), a member of the board of
trustees of a state supported college or university, or a person
appointed by such a board of trustees, complies with the disclosure
requirements of this chapter with respect to the member's or 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 member or
person 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.
(j) This section does not apply to members 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.
(k) As used in this section, "dependent" means any of the
following:
(1) The spouse of a public servant.
(2) A child, stepchild, or adoptee (as defined in IC 31-9-2-2) of
a public servant who is:
(A) unemancipated; and
(B) less than eighteen (18) years of age.
(3) Any individual more than one-half (1/2) of whose support
is provided during a year by the public servant.
As added by Acts 1978, P.L.144, SEC.7. Amended by Acts 1981,
P.L.304, SEC.1; P.L.329-1983, SEC.1; P.L.66-1987, SEC.28;
P.L.13-1987, SEC.16; P.L.183-1988, SEC.1; P.L.109-1988, SEC.3;
P.L.197-1989, SEC.3; P.L.2-1993, SEC.185; P.L.22-1995, SEC.3;
P.L.1-1997, SEC.149.
Last modified: May 24, 2006