HomeMy Public PortalAbout2012-06 - NEPOTISM AND CONFLICTS OF INTERESTORDINANCE 2012 -6
An Ordinance Adopting the Provisions of I.C. 36 -1 -20.2 and
I.C. 36 -1 -21 Regarding Nepotism and Conflicts of Interest
WHEREAS, in 2012 the Indiana Legislature passed, and the Governor signed, HEA 1005
entitled Nepotism; Conflict of Interest;
WHEREAS, IC 36 -1 -20.2, as added by P.L. 135 -2012, SECTION 7, requires
municipalities to establish a policy concerning nepotism;
WHEREAS, the City of Greencastle has already established a nepotism policy in its
Employee Handbook;
WHEREAS, IC 36 -1 -21, as added by P.L. 135 -2012, SECTION 8, requires municipalities
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 son -
in -law;
WHEREAS, after thoughtful consideration and in order to comply with the two new
chapters of the Indiana Code mentioned above, the City believes it is in the best interests
of its citizens to adopt as its policies the minimum requirements of IC 36 - -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 by the Common Council of the City of
Greencastle as follows:
1. The City of Greencastle finds that it is necessary and desirous to adopt a policy of
conduct with regard to nepotism in the employment with the City and in contracting
with the City 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 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's Nepotism Policy is hereby established effective July 1, 2012 by adopting the
minimum requirements and 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 is attached hereto.
4. The City's 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 is attached hereto.
5. The City 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 that more detailed are necessary.
6. The City 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 City finds that a single member of governing bodies with authority over employees
in the City 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. (Park Board, Cemetery Board, etc.).
8. All elected and appointed officials and employees of the City are hereby directed to
cooperate fully in the implementation of the policies created by this Ordinance and
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 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 who fails
to abide by or cooperate with the implementation, with the compliance and with
mandated certifications of the Nepotism 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
and may result in the discipline, including termination, of an employee or a curative
action. An elected or appointed official of the City who fails to abide by or cooperate with
the implementation, with the compliance and with mandated certifications of the
Contracting with Unit by a Relative Policy may be subject to action allowed by law.
11. The polices created by this Ordinance are hereby directed to 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 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 policies established by
this Resolution to its employees and elected and appointed officials. Upon the taking of
any of these actions the policies are deemed implemented by the City.
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, as may be supplemented or amended,
are on file in the office of the Clerk- Treasurer for the City for public inspection.
14. Ordinance 2009 -1, The City of Greencastle Employee Handbook, is hereby amended
to read as follows:
All other terms and conditions in Ordinance 2009 -1, as amended shall remain in full
force and effect.
This Ordinance shall have full force and effect upon passage of the Greencastle Common
Council and its approval by the Mayor.
PASSED AND ADOPTED by the Common Council of the City of Greencastle, Indiana
this 26 day T , 2012.
Ada i Cghen
Mark N. Hammer
Terry Srhit
Approved and signed by me this � day of , 2012, at
U L\ o'clock m.
Section II. GENERAL INFORMATION, B. Personal and Family Relationships
All decisions regarding nepotism and employment of relatives shall be done in
accordance with I.C. 36 -1 -20.2.
A
Sue Murray, Mayor
insie S. Bingham
( /J z
Phylj5 Rokicki
ATTES
y Dunbar, Clerk- reasurer
Chapter 20.2. Nepotism
Sec. 1. 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:
(1) 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:
(1) a precinct election officer (as defined in IC 3 -5 -2 -40.1) 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:
(1) 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:
(1) 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. 10. Individuals who are relatives may not be employed by a unit in a position that
results in one (1) relative being in the direct line of supervision of the other relative.
Sec. 11. (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 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 10 of this chapter.
(c) Unless a policy adopted under section 9 of this chapter provides otherwise, an
individual described in subsection (b) 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 section 10 of this chapter.
Sec. 12. This chapter does not abrogate or affect an employment contract with a unit
that:
(1) 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
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.
Sec. 14. Unless the policy adopted under section 9 of this chapter provides otherwise, an
individual:
(1) 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 (1) employee who is a relative. The employee:
(1) 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. 16. 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 finds 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. 18. 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 is in compliance with this chapter.
Chapter 21. Contracting With a Unit
Sec. 1. This chapter applies only to a unit.
Sec. 2. As used in this chapter, "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.
Sec. 3. (a) As used in this chapter, "relative" means any of the following:
(1) 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:
(1) 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:
(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) 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 fifteen (15) days after final action on the contract or
nnrchace_ 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 finds 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.