Chapter 2.55 CONFLICTS OF INTEREST AND NEPOTISM

An individual who is employed by a unit on July 1, 2012, is not subject to this article unless the individual has a break in employment with the unit. The following are not considered a break in employment with the unit:

A. The individual is absent from the workplace while on paid or unpaid leave, including vacation, sick, or family medical leave, or worker’s compensation.

B. The individual’s employment with the unit is terminated followed by immediate reemployment by the unit, without loss of payroll time. [Res. 2012-10 § 2 (Exh. A § 2)]

2.55.030 Employment by a unit.

For purposes of this article, the performance of the duties of:

A. A precinct election officer (as defined in IC 3-5-2-40.1) that are imposed by IC 3; or

B. A volunteer firefighter;

is not considered employment by a unit. [Res. 2012-10 § 2 (Exh. A § 3)]

2.55.040 Definitions.

A. As used in this article, “direct line of supervision” means an elected officer or employee who is in a position to affect the terms and conditions of another individual’s employment, including making decisions about work assignments, compensation, grievances, advancement, or performance evaluation. The term does not include the responsibilities of the executive, legislative body, or fiscal body of a unit, as provided by law, to make decisions regarding salary ordinances, budgets, or personnel policies of the unit.

B. As used in this article, “employed” means an individual who is employed by a unit on a full-time, part-time, temporary, intermittent, or hourly basis. The term does not include an individual who holds only an elected office. The term includes an individual who is a party to an employment contract with the unit.

C. As used in this article, “member of the fire department” means the fire chief or a firefighter appointed to the department.

D. As used in this article, “member of the police department” means the police chief or a police officer appointed to the department.

E. 1. As used in this article, “relative” means any of the following:

a. A spouse.

b. A parent or stepparent.

c. A child or stepchild.

d. A brother, sister, stepbrother, or stepsister.

e. A niece or nephew.

f. An aunt or uncle.

g. A daughter-in-law or son-in-law.

2. For purposes of this section, an adopted child of an individual is treated as a natural child of the individual.

3. For purposes of this section, the terms “brother” and “sister” include a brother or sister by the half blood. [Res. 2012-10 § 2 (Exh. A §§ 4 – 8)]

2.55.050 Policy.

A. This article establishes minimum requirements regarding employment of relatives. The legislative body of the unit shall adopt a policy that includes, at a minimum, the requirements set forth in this article. However, the policy may:

1. Include requirements that are more stringent or detailed than any provision in this article; and

2. Apply to individuals who are exempted or excluded from the application of this article. The unit may prohibit the employment of a relative that is not otherwise prohibited by this article.

B. The annual report filed by a unit with the State Board of Accounts under IC 5-11-13-1 must include a statement by the executive of the unit stating whether the unit has implemented a policy under this article. [Res. 2012-10 § 2 (Exh. A § 9)]

2.55.055 Council approval for employment of relatives.

A. As used in this section, “relative” shall be defined as provided in the Act [(IC 36-1-20.2 and 36-1-21)], and includes a spouse, parent, child (natural or adopted), stepchild, brother, half-brother, sister, half-sister, stepbrother, stepsister, niece, nephew, aunt, uncle, and daughter-in-law or son-in-law (including half-bloods and adopted children).

B. Prior to extending any offer for employment with the town (or any town department or agency) to any person that has a relative employed with or serving as an elected or appointed official of the town, or prior to the promotion of any existing employee that has a relative employed with or serving as an elected or appointed official of the town (or any town department or agency), the town council shall be provided notice of any such relatives and town council approval shall be required for any such employment or promotion.

C. In order to ensure compliance with the policy in this section, all applicants or persons being considered for employment or promotion with the town (or any town department or agency) shall verify any relatives employed with or serving as elected or appointed officials of the town.

D. This section shall be supplemental to Resolution 2012-10 and the Act, and shall not otherwise affect the requirements therein.

E. All officials and employees of the town are hereby directed to cooperate fully in the implementation of the policies created by this resolution.

F. Failure to abide by or comply with this section may result in discipline, including but not limited to termination of an employee or relative, or other curative action. [Res. 2014-18 §§ 1 – 6]

2.55.060 Relative employment restrictions.

Individuals who are relatives may not be employed by a unit in a position that results in one relative being in the direct line of supervision of the other relative. [Res. 2012-10 § 2 (Exh. A § 10)]

2.55.070 Exceptions.

A. This section applies to an individual who:

1. Is employed by a unit on the date the individual’s relative begins serving a term of an elected office of the unit; and

2. Is not exempt from the application of this article under WMC 2.55.020.

B. Unless a policy adopted under WMC 2.55.050 provides otherwise, an individual may remain employed by a unit and maintain the individual’s position or rank even if the individual’s employment would violate WMC 2.55.060.

C. Unless a policy adopted WMC 2.55.050 provides otherwise, an individual described in subsection B of this section may not:

1. Be promoted to a position; or

2. Be promoted to a position that is not within the merit ranks, in the case of an individual who is a member of a merit police department or merit fire department, if the new position would violate WMC 2.55.060. [Res. 2012-10 § 2 (Exh. A § 11)]

2.55.080 Effect on employment contract.

This article does not abrogate or affect an employment contract with a unit that:

A. An individual is a party to; and

B. Is in effect on the date the individual’s relative begins serving a term of an elected office of the unit. [Res. 2012-10 § 2 (Exh. A § 12)]

2.55.090 Sheriff’s spouse as prison matron.

Unless the policy adopted under WMC 2.55.050 provides otherwise, a sheriff’s spouse may be employed as prison matron for the county under IC 36-8-10-5 and the spouse may be in the sheriff’s direct line of supervision. [Res. 2012-10 § 2 (Exh. A § 13)]

2.55.100 Coroner.

Unless the policy adopted under WMC 2.55.050 provides otherwise, an individual:

A. Who served as coroner;

B. Who is currently ineligible to serve as coroner under Article 6, Section 2[(c)] of the Constitution of the state of Indiana;

C. Who, as coroner, received certification under IC 36-2-14-22.3; and

D. Whose successor in the office of coroner is a relative of the individual;

may be hired in the position of deputy coroner and be in the coroner’s direct line of supervision. [Res. 2012-10 § 2 (Exh. A § 14)]

2.55.110 Township trustee.

If the township trustee’s office is located in the township trustee’s personal residence, unless the policy adopted under WMC 2.55.050 provides otherwise the township trustee may hire only one employee who is a relative. The employee:

A. May be hired to work only in the township trustee’s office;

B. May be in the township trustee’s direct line of supervision; and

C. May not receive total salary, benefits, and compensation that exceed $5,000.00 per year. [Res. 2012-10 § 2 (Exh. A § 15)]

2.55.120 Certification.

Each elected officer of the unit shall annually certify in writing, subject to the penalties for perjury, that the officer has not violated this article. An officer shall submit the certification to the executive of the unit not later than December 31st of each year. [Res. 2012-10 § 2 (Exh. A § 16)]

2.55.130 State Board of Accounts.

If the State Board of Accounts finds that a unit has not implemented a policy under this article, the State Board of Accounts shall forward the information to the department of local government finance. [Res. 2012-10 § 2 (Exh. A § 17)]

2.55.140 Noncompliance with policy requirement.

If a unit has not implemented a policy under this article, the department of local government finance may not approve:

A. The unit’s budget; or

B. Any additional appropriations for the unit;

for the ensuing calendar year until the State Board of Accounts certifies to the department of local government finance that the unit is in compliance with this article. [Res. 2012-10 § 2 (Exh. A § 18)]

Article II. Contracting with a Unit

2.55.150 Applicability.

This article applies only to a unit. [Res. 2012-10 § 3 (Exh. B § 1)]

2.55.160 Definitions.

A. As used in this article, “elected official” means:

1. The executive or a member of the executive body of the unit;

2. A member of the legislative body of the unit; or

3. A member of the fiscal body of the unit.

B. 1. As used in this article, “relative” means any of the following:

a. A spouse.

b. A parent or stepparent.

c. A child or stepchild.

d. A brother, sister, stepbrother, or stepsister.

e. A niece or nephew.

f. An aunt or uncle.

g. A daughter-in-law or son-in-law.

2. For purposes of this section, an adopted child of an individual is treated as a natural child of the individual.

3. For purposes of this section, the terms “brother” and “sister” include a brother or sister by the half blood. [Res. 2012-10 § 3 (Exh. B §§ 2, 3)]

2.55.170 Policy requirements.

A. This article establishes minimum requirements regarding contracting with a unit. The legislative body of the unit shall adopt a policy that includes, at a minimum, the requirements set forth in this article. However, the policy may:

1. Include requirements that are more stringent or detailed than any provision in this article; and

2. Apply to individuals who are exempted or excluded from the application of this article.

The unit may prohibit or restrict an individual from entering into a contract with the unit that is not otherwise prohibited or restricted by this article.

2.55.180 Contracts with relatives allowed when.

A. A unit may enter into a contract or renew a contract for the procurement of goods and services or a contract for public works with:

1. An individual who is a relative of an elected official; or

2. A business entity that is wholly or partially owned by a relative of an elected official;

only if the requirements of this section are satisfied and the elected official does not violate IC 35-44-1-3.

B. A unit may enter into a contract or renew a contract with an individual or business entity described in subsection A of this section if:

1. The elected official files with the unit a full disclosure, which must:

a. Be in writing;

b. Describe the contract or purchase to be made by the unit;

c. Describe the relationship that the elected official has to the individual or business entity that contracts or purchases;

d. Be affirmed under penalty of perjury;

e. Be submitted to the legislative body of the unit and be accepted by the legislative body in a public meeting of the unit prior to final action on the contract or purchase; and

f. Be filed, not later than 15 days after final action on the contract or purchase, with:

i. The State Board of Accounts; and

ii. The clerk of the circuit court in the county where the unit takes final action on the contract or purchase;

2. The appropriate agency of the unit:

a. Makes a certified statement that the contract amount or purchase price was the lowest amount or price bid [ ] offered; or

b. Makes a certified statement of the reasons why the vendor or contractor was selected; and

3. The unit satisfies any other requirements under IC 5-22 or IC 36-1-12.

C. An elected official shall also comply with the disclosure provisions of IC 35-44-1-3, if applicable.

D. This section does not affect the initial term of a contract in existence at the time the term of office of the elected official of the unit begins. [Res. 2012-10 § 3 (Exh. B § 5)]

[Sample forms attached to Res. 2012-10 (Exh. B).]

2.55.190 Certification required.

Each elected officer of the unit shall annually certify in writing, subject to the penalties for perjury, that the officer is in compliance with this article. An officer shall submit the certification to the executive of the unit not later than December 31st of each year. [Res. 2012-10 § 3 (Exh. B § 6)]

2.55.200 State Board of Accounts.

2.55.210 Noncompliance with policy requirement.

If a unit has not implemented a policy under this article, the department of local government finance may not approve:

A. The unit’s budget; or

B. Any additional appropriations for the unit;

for the ensuing calendar year until the State Board of Accounts certifies to the department of local government finance that the unit has adopted a policy under this article. [Res. 2012-10 § 3 (Exh. B § 8)]