Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2023 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 221
AN ACT to amend the Indiana Code concerning state and local
administration.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 5-11-1-28, AS AMENDED BY THE TECHNICAL
CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
Sec. 28. (a) The bureau of motor vehicles (IC 9-14-7-1), office of the
secretary of family and social services (IC 12-8-1.5-1), and department
of state revenue (IC 6-8.1-2-1) shall each annually:
(1) have performed by an internal auditor:
(A) an internal audit; and
(B) a review of internal control systems;
of the agency; and
(2) have the internal auditor report the results of the internal audit
and review to an examiner designated by the state examiner to
receive the results.
(b) The examiner designated under subsection (a) shall, not later
than September 1 of each year:
(1) compile a final report of the results of the internal audits and
reviews performed and reported under subsection (a); and
(2) submit a copy of the final report to the following:
(A) The governor.
(B) The auditor of state comptroller.
(C) The chairperson of the audit committee, in an electronic
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format under IC 5-14-6.
(D) The director of the office of management and budget.
(E) The legislative council, in an electronic format under
IC 5-14-6.
(c) An internal audit or risk assessment conducted by or on
behalf of the state shall remain confidential, except as provided in
subsection (e).
(d) Except as provided in subsection (e), or in accordance with
a judicial order:
(1) the state;
(2) an employee of the state;
(3) a former employee of the state;
(4) counsel to the state;
(5) an agent of the state; or
(6) any other person;
may not divulge information related to any internal audit or risk
assessment conducted by or on behalf of the state.
(e) Notwithstanding subsection (d), an entity or individual listed
in subsection (d) may divulge information related to an internal
audit or risk assessment conducted by or on behalf of the state to:
(1) the state examiner or the state examiner's designee;
(2) the director of the office of management and budget or the
director of the office of management and budget's designee;
(3) an external auditor, in accordance with professional
auditing standards; or
(4) any other individual for any reason that constitutes good
cause as determined by the state examiner and approved by
the director of the office of management and budget.
SECTION 2. IC 5-11-5-1, AS AMENDED BY P.L.59-2023,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 1. (a) Whenever an examination is made under
this article, a report of the examination shall be made. The report must
include a list of findings and shall be signed and verified by the
examiner making the examination. A finding that is critical of an
examined entity must be based upon one (1) of the following:
(1) Failure of the entity to observe a uniform compliance
guideline established under IC 5-11-1-24(a).
(2) Failure of the entity to comply with a specific law.
A report that includes a finding that is critical of an examined entity
must designate the uniform compliance guideline or the specific law
upon which the finding is based. Except as provided in subsection (g),
the state board of accounts may issue confidential management letters,
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based on professional auditing standards, to an audited entity (as
defined in section 1.5(a) of this chapter) in a situation involving
noncompliance that does not result in the establishment of a corrective
action plan but that must be brought to the attention of the audited
entity's governing body. If issues addressed in the confidential
management letter become part of a finding in the subsequent audit
period, it shall be noted in the public report. The state examiner shall
file one (1) copy of the report with the entity examined, one (1) copy
in an electronic format on a public website, and one (1) copy in an
electronic format under IC 5-14-6 with the legislative services agency,
as staff to the audit committee and the general assembly. A report is
open to public inspection at all reasonable times after it is filed. If an
examination discloses malfeasance, misfeasance, or nonfeasance in
office or of any officer or employee, a copy of the report, signed and
verified, shall be placed by the state examiner with the attorney general
and the inspector general. The attorney general shall diligently institute
and prosecute civil proceedings against the persons or entities charged
in such report, or upon the officer's or employee's official bond, or both,
and against any other proper person that will secure to the state or to
the proper municipality the recovery of any funds misappropriated,
diverted, or unaccounted for.
(b) Before an examination report is signed, verified, and filed as
required by subsection (a), the officer or the chief executive officer of
the state office, municipality, or entity examined must have an
opportunity to review the report and to file with the state examiner a
written response to that report. If a written response is filed, it becomes
a part of the examination report that is signed, verified, and filed as
required by subsection (a). As part of the review of the examination
report, the state examiner shall hold a gathering of the officer or chief
executive officer of the state office, municipality, or entity examined,
any employees or agents of the state office, municipality, or entity
examined who are requested to attend by the officer or chief executive
officer of the state office, municipality, or entity examined, and the
members of the legislative and fiscal bodies of the municipality or
entity examined. Such a gathering is referred to as an "exit conference"
for purposes of this subsection. The following apply to an exit
conference:
(1) All information discussed and materials presented or delivered
by any person during an exit conference are confidential and may
not be discussed or shared publicly until the earliest of the
occurrences set forth in subsection (g). However, the information
discussed and materials presented or delivered during an exit
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conference may be shared with an officer, employee, consultant,
adviser, or attorney of the officer or chief executive officer of the
state office, municipality, or entity examined who was not present
at the exit conference. An individual with whom information and
materials are shared must maintain the confidentiality of the
information and materials as provided in this subdivision until the
earliest of the occurrences set forth in subsection (g).
(2) An individual attending an exit conference may not
electronically record the exit conference.
(3) If a majority of a governing body (as defined in
IC 5-14-1.5-2(b)) is present during an exit conference, or any
conference initiated by the state examiner to discuss an
examination status, the governing body shall be considered in an
executive session under IC 5-14-1.5. However, the governing
body has no obligation to give notice as prescribed by
IC 5-14-1.5-5 when it participates in the exit conference or any
conference initiated by the state examiner to discuss an
examination status.
(4) If the state examiner determines after the exit conference that
additional actions must be undertaken by a deputy examiner, field
examiner, or private examiner with respect to information
discussed or materials presented at the exit conference, the state
examiner may call for an additional exit conference to be held.
(c) If an examination report shows or discloses the commission of
a crime by any person, it is the duty of the state examiner to transmit
and present the examination report to the prosecuting attorney of the
county in which the crime was committed. The state examiner shall
furnish to the prosecuting attorney all evidence at the state examiner's
command necessary in the investigation and prosecution of the crime.
(d) If, during an examination under this article, a deputy examiner,
field examiner, or private examiner acting as an agent of the state
examiner determines that the following conditions are satisfied, the
examiner shall report the determination to the state examiner:
(1) A substantial amount of public funds has been
misappropriated or diverted.
(2) The deputy examiner, field examiner, or private examiner
acting as an agent of the state examiner has a reasonable belief
that the malfeasance or misfeasance that resulted in the
misappropriation or diversion of the public funds was committed
by the officer or an employee of the office or entity.
(e) After receiving a preliminary report under subsection (d), the
state examiner may provide a copy of the report to the attorney general.
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The attorney general may institute and prosecute civil proceedings
against the persons or entities charged in such report, or upon the
officer's or employee's official bond, or both, and against any other
proper person that will secure to the state or to the proper municipality
the recovery of any funds misappropriated, diverted, or unaccounted
for.
(f) In an action under subsection (e), the attorney general may attach
the defendant's property under IC 34-25-2.
(g) Except as permitted in this section, the information and materials
that are part of an exit conference under subsection (b), and the results
of an examination or investigation, including a preliminary report
under subsection (d), are confidential until the occurrence of the
earliest of the following:
(1) The final report is made public under subsection (a).
(2) The attorney general institutes an action under subsection (e)
on the basis of the preliminary report.
(3) The results of an examination or investigation are published
by direction of the state examiner or any court.
(h) Except as permitted in this section, an individual, a public
agency (as defined in IC 5-14-3-2), a public employee, a public official,
or an employee or officer of a contractor or subcontractor of a public
agency that knowingly or intentionally discloses information in
violation of subsection (b) or (g), regardless of whether the information
is received orally or by any other means, is subject to the following:
(1) A public agency (as defined in IC 5-14-3-2), a public
employee, a public official, or an employee or officer of a
contractor or subcontractor of a public agency commits a Class A
infraction under IC 5-14-3-10.
(2) If the disclosure is by a person who is not described in
subdivision (1), the person commits a Class A infraction.
(i) Unless in accordance with a judicial order or as otherwise
provided in this section, the state board of accounts or its employees,
former employees, counsel, or agents, or any other person may not
divulge the examination workpapers and investigation records of a
deputy examiner, a field examiner, or a private examiner acting as an
agent of the state examiner, except to:
(1) employees and members of the state board of accounts;
(2) the audit committee;
(3) law enforcement officers, the attorney general, a prosecuting
attorney, or any other legal representative of the state in any
action with respect to the misappropriation or diversion of public
funds;
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(4) an authorized representative of the United States;
(5) a successor examiner or auditor, in accordance with applicable
professional auditing standards; or
(6) another individual for any other factor that constitutes good
cause as set forth in criteria established by the state examiner and
approved by the audit committee.
(j) An individual described in subsection (i)(3) or (i)(4) who
receives examination workpapers and investigation records described
in subsection (i) may divulge the workpapers and records in any action
with respect to the misappropriation or diversion of public funds.
SECTION 3. IC 5-11-14-2, AS AMENDED BY P.L.58-2023,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 2. (a) The state board of accounts shall annually
conduct a training institute for clerk-treasurers and may conduct a
training institute for city clerks, either of the entire state or by districts.
The provisions of this chapter are applicable to any such training
institute.
(b) The state board of accounts shall keep attendance of
clerk-treasurers at each conference called by the state board of
accounts and publish the attendance on the state board of accounts'
website.
(c) Clerk-treasurers and city clerks must attend the annual training
institute a minimum of once every two (2) years.
SECTION 4. IC 36-2-9-2.5, AS AMENDED BY P.L.257-2019,
SECTION 104, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 2.5. (a) As used in this section,
"training courses" refers to training courses related to the office of
county auditor that are compiled or developed by the Association of
Indiana Counties and approved by the state board of accounts.
(b) An individual elected to the office of county auditor shall
complete at least:
(1) fifteen (15) hours of training courses within one (1) year; and
(2) forty (40) hours of training courses within three (3) years;
after the individual is elected to the office of county auditor.
(c) An individual first elected to the office of county auditor shall
complete five (5) hours of newly elected official training courses before
the individual first takes the office of county auditor. A training course
that an individual completes under this subsection shall be counted
toward the requirements under subsection (b).
(d) An individual shall fulfill the training requirements established
by subsection (b) for each term to which the individual is elected as
county auditor.
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(e) The failure of an individual to complete the training required by
this section does not prevent the individual from taking an office to
which the individual was elected.
(f) This subsection applies only to an individual appointed to fill a
vacancy in the office of county auditor. An individual described in this
subsection may, but is not required to, take training courses required by
subsection (b). If an individual described in this subsection takes a
training course required by subsection (b) for an elected county auditor,
the county shall pay for the training course as if the individual had been
an elected county auditor.
(g) An individual elected to the office of county auditor shall
annually certify completion of the requirements described in
subsection (b). The certification must be in the form and content
prescribed by the state examiner and filed electronically in the
manner prescribed under IC 5-14-3.8-7.
SECTION 5. IC 36-4-10-8, AS AMENDED BY P.L.58-2023,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8. (a) As used in this section, "training
courses" refers to training courses, workshops, training institutes
authorized by IC 5-11-14, formal academies, special seminars, and
other in-service training related to an office described in section 2 of
this chapter that are developed or offered under the rubric of a
generally accepted professional association, association of governments
or a state agency or department, or public university or affiliated center.
(b) An individual elected or appointed to an office described in
section 2 of this chapter on or after November 5, 2019, shall complete
at least:
(1) fourteen (14) hours of training courses within one (1) year;
and
(2) thirty-six (36) hours of training courses within three (3) years;
after the individual is elected or appointed to an office described in
section 2 of this chapter.
(c) An individual first elected or appointed to an office described in
section 2 of this chapter the office of clerk-treasurer or city
controller shall complete five (5) hours of approved training courses
before the individual first takes office. A training course that the
individual completes under this subsection shall be counted toward the
requirements under subsection (b).
(d) An individual shall fulfill the training requirements established
by subsection (b) for each term to which the individual is elected or
appointed to an office described in section 2 of this chapter.
(e) This subsection applies only to an individual appointed to fill a
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vacancy in an office described in section 2 of this chapter. An
individual described in this subsection may, but is not required to, take
training courses required by subsection (b). If an individual described
in this subsection takes a training course required by subsection (b) for
an office described in section 2 of this chapter, the city shall pay for the
training course as if the individual had been elected or appointed to an
office described in section 2 of this chapter.
(f) The:
(1) city executive;
(2) city legislative body; and
(3) individual who holds the office described in section 2 of this
chapter;
shall use all reasonable means to ensure that the individual who holds
the office described in section 2 of this chapter complies with the
training requirements established by this section.
(g) The individual who holds the office described in section 2 of this
chapter shall maintain written documentation of the training courses
that the individual completes toward the requirements of this section.
(h) If a city reorganizes under IC 36-1.5, the individual who
performs the functions of an office described in section 2 of this
chapter for the city shall comply with the training requirements
established by this section for the reorganized political subdivision.
(i) An individual elected or appointed to an office described in
section 2 of this chapter shall certify completion of the requirements
described in subsection (b) every year and file the certification with the
state board of accounts in the same manner as the report required in
IC 5-11-1-4(a).
SECTION 6. An emergency is declared for this act.
SEA 221 President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
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