HomeMy Public PortalAbout030-2012 - Special Ordinance - adoption of NECOMMON COUNCIL
CITY OF RICHMOND, INDIANA
ORDINANCE 30-2012
A SPECIAL ORDINANCE ADOPTING NEPOTISM POLICY AND
CONTRACTING WITH A UNIT BY A RELATIVE POLICY IN
ACCORDANCE WITH IC 36-1-20.2 AND IC 36-1-21 (HEA 1005
CONFLICT OF INTEREST AND NEPOTISM EFFECTIVE JULY 1, 2012)
WHEREAS, In 2012 the Indiana Legislature passed, and the Governor signed, HEA 1005
entitled Nepotism; Conflict of Interest;
WHEREAS, Indiana Code (IC) 36-1-20.2, as added by P.L. 135-2012, SECTION 7, requires
the City of Richmond to establish a policy concerning nepotism;
WHEREAS, IC 36-1-21, as added by P.L. 135-2012, SECTION 8, requires the City of
Richmond to establish a policy concerning contracting with relatives of elected
officials;
WHEREAS, These two new chapters, IC 36-1-20.2 Nepotism and IC 36-1-21 Contracting with
a Unit, respectively, are effective July 1, 2012;
WHEREAS, In both of the new Indiana Code chapters, the municipal legislative bodies are
mandated to adopt a policy that includes, as a minimum, the requirements set
forth in those new chapters;
WHEREAS, In both of the new Indiana Code chapters "relative" is defined as a spouse, parent,
stepparent, child (natural or adopted), stepchild, brother, half- brother, sister, half-
sister, stepbrother, stepsister, niece, nephew, aunt, uncle, daughter-in-law or Bon-
in -law;
WHEREAS, After thoughtful consideration and in order to comply with the two new chapters
of the Indiana Code mentioned above, the City of Richmond, a municipal unit,
believes it is in the best interests of its citizens to adopt as its policies the
minimum requirements of IC 36- 1-20.2, Nepotism, and IC 36-1-21, Contracting
with a Unit, as stated in the said new chapters of the Indiana Code; and
NOW, THEREFORE, BE IT ORDAINED THAT the Common Council of the City of Richmond
states as follows:
1. The City of Richmond finds that it is necessary and desirous to adopt a policy of conduct
with regard to nepotism in the employment with the City of Richmond and in contracting with
the City of Richmond in order to continue to be able to provide local government services to its
residents and to comply with the new laws effective July 1, 2012 known as IC 36-1-20.2 and IC
36-1-21, respectively.
2. On July 1, 2012 the City of Richmond shall have a Nepotism and a Contracting with a
Unit policy that complies with the minimum requirements of IC 36-1-20.2 (hereinafter
"Nepotism Policy") and IC 36-1-21 (hereinafter "Contracting with a Unit by a Relative Policy")
and implementation will begin.
3. The City of Richmond Nepotism Policy is hereby established effective July 1, 2012 by
adopting the minimum requirements provisions of IC 36-1-20.2, and including all future
supplements and amendments thereto which become law from time to time, and making them a
part hereof as if fully set out herein. In addition, a copy of IC 36-1-20.2, Nepotism, in effect on
July 1, 2012, is attached hereto. The "new hire" provisions of this policy does not affect people
hired prior to July 1, 2012.
4. The City of Richmond Contracting with a Unit by a Relative Policy is hereby established
effective July 1, 2012 by adopting the minimum requirements provisions of IC 36-1-21, and
including all future supplements and amendments thereto which become law from time to time,
and making them a part hereof as if fully set out herein. In addition, a copy of the IC 36-1-21,
Nepotism, in effect on July 1, 2012, is attached hereto.
5. The Common Council finds that both IC 36-1-20.2 and IC 36-1-21 specifically allow a
unit to adopt requirements that are "more stringent or detailed" and more detailed as the unit
determines is necessary.
6. The Common Council further finds that a single member of the legislative body cannot
act for the body to make work assignments, compensation, grievances, advancement or a
performance evaluation without prior authority of a majority of the body and therefore without
such authority by the majority he/she will not be in the direct line of supervision. See, [IC 36-4-
6-11] [IC 36-5-2-9.4].
7. The Common Council finds that a single member of a unit's governing bodies (Board of
Works, Park Board, Sanitary Board, Board of Zoning Appeals, Plan Commission, Airport Board,
etc.) with authority over employees in the City of Richmond cannot act for the governing body to
make work assignments, compensation, grievances, advancement or a performance evaluation
without prior authority of a majority of the body, when a statute provides that a majority is
needed to act, and therefore, without such authority by the majority the single member will not
be in the direct line of supervision.
8. All elected and appointed officials and employees of the City of Richmond are directed to
cooperate fully in the implementation of the policies created by this Ordinance and to
demonstrate compliance with these same policies.
9. Failure to abide by or cooperate with the implementation, compliance and certifications
connected with the Nepotism Policy is a violation of this Ordinance and may result in the
discipline, including termination, of an employee or a transfer from the direct line of supervision
or other curative action. An elected or appointed official of the City of Richmond who fails to
abide by or cooperate with the implementation, compliance, and mandated certifications of either
the Nepotism Policy or the Contracting with Unit by a Relative Policy may be subject to action
allowed by law.
10. Failure to abide by or cooperate with the implementation, compliance and certifications
connected with the Contracting with Unit by a Relative Policy is a violation of this Ordinance
and may result in the discipline, including termination, of an employee or a curative action. An
elected or appointed official of the City of Richmond who fails to abide by or cooperate with the
implementation, the compliance, and mandated certifications of either the Nepotism Policy or the
Contracting with Unit by a Relative Policy may be subject to action allowed by law.
11. The polices created by this Ordinance shall be implemented by any of the following
actions:
a) posting a copy of this Ordinance in its entirety in at least one of the locations in
the City of Richmond where it posts employer posters or other notices to its
employees;
b) providing a copy of this Ordinance to its employees and elected and appointed
officials;
c) providing or posting a notice of the adoption of this Ordinance; or
d) any such other action or actions that would communicate the polices established
by this Ordinance to its employees and elected and appointed officials.
Upon any taking of these actions these policies are deemed implemented by the City of
Richmond.
12. A copy of the provisions of IC 36-1-20.2 and IC 36-1-21 effective July 1, 2012 are
annexed hereto.
13. Two (2) copies of IC 36-1-20.2 and IC 36-1-21, and as supplemented or amended, are on
file in the office of the Clerk for the City of Richmond for public inspection as maybe required
by IC 36-1-5-4.
Passed and adopted this _4th day of _June 2012, by the Common Council of the City of
Richmond, Indiana.
_S/S Philip Matthew Quinn President
(Philip Matthew Quinn)
ATTEST: _S/S Karen Chasteen , City Clerk
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this _51h day of _June
2012, at 9:00 a.m.
_S/S Karen Chasteen City Clerk
(Karen Chasteen, IAMC, MMC)
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this _5th day of
June , 2012, at 9:05 a.m.
_S/S Sarah L. Hutton Mayor
(Sarah L. Hutton)
ATTEST: _S/S Karen Chasteen City Clerk
(Karen Chasteen, IAMC, MMC)
Chapter 20.2. Nepotism
Sec. i. This chapter applies to all units.
Sec. 2. An individual who is employed by a unit on July 1, 2012, is not subject to
this chapter unless the individual has a break in employment with the unit. The
following are not considered a break in employment with the unit:
(i) The individual is absent from the workplace while on paid or unpaid leave,
including vacation, sick, or family medical leave, or worker's compensation.
(2) The individual's employment with the unit is terminated followed by
immediate reemployment by the unit, without loss of payroll time.
Sec. 3. For purposes of this chapter, the performance of the duties of:
(i) a precinct election officer (as defined in IC 3-5-2-40A) that are imposed by
IC 3; or
(2) a volunteer firefighter;
is not considered employment by a unit.
Sec. 4. As used in this chapter, "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.
Sec. 5. As used in this chapter, "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.
Sec. 6. As used in this chapter, "member of the fire department" means the fire
chief or a firefighter appointed to the department.
Sec. 7. As used in this chapter, "member of the police department" means the
police chief or a police officer appointed to the department.
Sec. 8. (a) As used in this chapter, "relative" means any of the following:
(i) A spouse.
(2) A parent or stepparent.
(3) A child or stepchild.
(4) A brother, sister, stepbrother, or stepsister.
(5) A niece or nephew.
(6) An aunt or uncle.
(7) A daughter-in-law or son-in-law.
(b) For purposes of this section, an adopted child of an individual is treated as
a natural child of the individual.
(c) For purposes of this section, the terms "brother" and "sister" include a
brother or sister by the half blood.
Sec. 9. (a) This chapter 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 chapter.
However, the policy may:
(i) include requirements that are more stringent or detailed than any
provision in this chapter; and
(2) apply to individuals who are exempted or excluded from the application of
this chapter.
The unit may prohibit the employment of a relative that is not otherwise
prohibited by this chapter.
(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 chapter.
Sec. io. Individuals who are relatives may not be employed by a unit in a
position that results in one (i) relative being in the direct line of supervision of
the other relative.
Sec. ii. (a) This section applies to an individual who:
(i) 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 chapter under section 2 of this
chapter.
(b) Unless a policy adopted under section 9 of this chapter 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 section io
of this chapter.
(c) Unless a policy adopted under section 9 of this chapter provides otherwise,
an individual described in subsection (b) may not:
(i) 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 section io of this chapter.
Sec. 12. This chapter does not abrogate or affect an employment contract with a
unit that:
(i) an individual is a party to; and
(2) is in effect on the date the individual's relative begins serving a term of an
elected office of the unit.
Sec. 13. Unless the policy adopted under section 9 of this chapter provides
otherwise, a sheriffs spouse may be employed as prison matron for the county
under IC 36-8-10-5 and the spouse may be in the sheriffs direct line of
supervision.
Sec. 14. Unless the policy adopted under section 9 of this chapter provides
otherwise, an individual:
W who served as coroner;
(2) who is currently ineligible to serve as coroner under Article 6, Section 2(b)
of the Constitution of the State of Indiana;
(3) who, as coroner, received certification under IC 36-2-14-22.3; and
(4) 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.
Sec. 15. If the township trustee's office is located in the township trustee's
personal residence, unless the policy adopted under section 9 of this chapter
provides otherwise the township trustee may hire only one (i) employee who is
a relative. The employee:
(i) may be hired to work only in the township trustee's office;
(2) may be in the township trustee's direct line of supervision; and
(3) may not receive total salary, benefits, and compensation that exceed five
thousand dollars ($5,000) per year.
Sec. 1.6. Each elected officer of the unit shall annually certify in writing, subject
to the penalties for perjury, that the officer has not violated this chapter. An
officer shall submit the certification to the executive of the unit not later than
December 31 of each year.
Sec. 17. If the state board of accounts fmds that a unit has not implemented a
policy under this chapter, the state board of accounts shall forward the
information to the department of local government finance.
Sec. 1.8. If a unit has not implemented a policy under this chapter, the
department of local government finance may not approve:
(i) the unit's budget; or
(2) 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
chapter.
Chapter 21. Contracting With a Unit
Sec. i. This chapter applies only to a unit.
Sec. 2. As used in this chapter, "elected official" means:
(i) 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.
Sec. 3. (a) As used in this chapter, "relative" means any of the following:
(i) A spouse.
(2) A parent or stepparent.
(3) A child or stepchild.
(4) A brother, sister, stepbrother, or stepsister.
(5) A niece or nephew.
(6) An aunt or uncle.
(7) A daughter-in-law or son-in-law.
(b) For purposes of this section, an adopted child of an individual is treated as
a natural child of the individual.
(c) For purposes of this section, the terms "brother" and "sister" include a
brother or sister by the half blood.
Sec. 4. (a) This chapter 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 chapter. However,
the policy may:
(i) include requirements that are more stringent or detailed than any
provision in this chapter; and
(2) apply to individuals who are exempted or excluded from the application of
this chapter.
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 chapter.
(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 chapter.
Sec. 5. (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:
(i) 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) if:
(i) 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 fifteen (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 or 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.
Sec. 6. 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 chapter.
An officer shall submit the certification to the executive of the unit not later
than December 31 of each year.
Sec. 7. If the state board of accounts fmds that a unit has not implemented a
policy under this chapter, the state board of accounts shall forward the
information to the department of local government finance.
Sec. 8. If a unit has not implemented a policy under this chapter, the
department of local government finance may not approve:
(1) the unit's budget; or
(2) 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 chapter.