Indiana 2024 Regular Session

Indiana Senate Bill SB0221 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	ES0221.1
	2	+	February 13, 2024
	3	+	ENGROSSED
	4	+	SENATE BILL No. 221
	5	+	_____
	6	+	DIGEST OF SB 221 (Updated February 13, 2024 11:38 am - DI 140)
	7	+	Citations Affected: IC 5-11; IC 36-2; IC 36-4.
	8	+	Synopsis: State board of accounts. Limits the authority of the director
	9	+	of the special investigations department to investigations involving
	10	+	public monies that are the subject of financial examinations undertaken
	11	+	by the state board. Provides that an internal audit or risk assessment
	12	+	conducted by or on behalf of the state shall remain confidential, and
	13	+	that the state and other individuals may not divulge information related
	14	+	to an internal audit or risk assessment unless required to do so in
	15	+	accordance with a judicial order. Provides an exception allowing the
	16	+	state and other individuals to divulge information related to an internal
	17	+	audit or risk assessment to: (1) the state examiner; (2) the director of
	18	+	(Continued next page)
	19	+	Effective: Upon passage; July 1, 2024.
	20	+	Bassler, Gaskill, Randolph Lonnie M,
	21	+	Walker G
	22	+	(HOUSE SPONSOR — LEHMAN)
	23	+	January 9, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
	24	+	January 30, 2024, amended, reported favorably — Do Pass.
	25	+	February 5, 2024, read second time, ordered engrossed. Engrossed.
	26	+	February 6, 2024, read third time, passed. Yeas 48, nays 0.
	27	+	HOUSE ACTION
	28	+	February 12, 2024, read first time and referred to Committee on Government and
	29	+	Regulatory Reform.
	30	+	February 13, 2024, reported — Do Pass.
	31	+	ES 221—LS 6397/DI 134 Digest Continued
	32	+	the office of management and budget; (3) an external auditor, in
	33	+	accordance with professional auditing standards; or (4) any other
	34	+	individual for any reason that constitutes good cause as determined by
	35	+	the state examiner and approved by the director of the office of
	36	+	management and budget. Provides that if a majority of a governing
	37	+	body is present during an exit conference, or any conference initiated
	38	+	by the state examiner to discuss an examination status, the governing
	39	+	body shall be considered in an executive session. Removes a
	40	+	mandatory requirement that city clerks attend the annual training
	41	+	institute conducted by the state board of accounts. Limits the
	42	+	requirement that certain newly elected or appointed local officers
	43	+	complete five hours of approved training courses before the individual
	44	+	first takes office to only individuals first elected or appointed to the
	45	+	office of clerk-treasurer or city controller (and excluding city clerk).
	46	+	Requires an individual elected to the office of county auditor to
	47	+	annually certify completion of the individual's training requirements
	48	+	and file the certification with the state board.
	49	+	ES 221—LS 6397/DI 134ES 221—LS 6397/DI 134 February 13, 2024
1	50		Second Regular Session of the 123rd General Assembly (2024)
2	51		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	52		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	53		additions will appear in this style type, and deletions will appear in this style type.
5	54		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	55		provision adopted), the text of the new provision will appear in this style type. Also, the
7	56		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	57		a new provision to the Indiana Code or the Indiana Constitution.
9	58		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	59		between statutes enacted by the 2023 Regular Session of the General Assembly.
11		-	SENATE ENROLLED ACT No. 221
12		-	AN ACT to amend the Indiana Code concerning state and local
13		-	administration.
	60	+	ENGROSSED
	61	+	SENATE BILL No. 221
	62	+	A BILL FOR AN ACT to amend the Indiana Code concerning state
	63	+	and local administration.
14	64		Be it enacted by the General Assembly of the State of Indiana:
15		-	SECTION 1. IC 5-11-1-28, AS AMENDED BY THE TECHNICAL
16		-	CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
17		-	AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
18		-	Sec. 28. (a) The bureau of motor vehicles (IC 9-14-7-1), office of the
19		-	secretary of family and social services (IC 12-8-1.5-1), and department
20		-	of state revenue (IC 6-8.1-2-1) shall each annually:
21		-	(1) have performed by an internal auditor:
22		-	(A) an internal audit; and
23		-	(B) a review of internal control systems;
24		-	of the agency; and
25		-	(2) have the internal auditor report the results of the internal audit
26		-	and review to an examiner designated by the state examiner to
27		-	receive the results.
28		-	(b) The examiner designated under subsection (a) shall, not later
29		-	than September 1 of each year:
30		-	(1) compile a final report of the results of the internal audits and
31		-	reviews performed and reported under subsection (a); and
32		-	(2) submit a copy of the final report to the following:
33		-	(A) The governor.
34		-	(B) The auditor of state comptroller.
35		-	(C) The chairperson of the audit committee, in an electronic
36		-	SEA 221 2
37		-	format under IC 5-14-6.
38		-	(D) The director of the office of management and budget.
39		-	(E) The legislative council, in an electronic format under
40		-	IC 5-14-6.
41		-	(c) An internal audit or risk assessment conducted by or on
42		-	behalf of the state shall remain confidential, except as provided in
43		-	subsection (e).
44		-	(d) Except as provided in subsection (e), or in accordance with
45		-	a judicial order:
46		-	(1) the state;
47		-	(2) an employee of the state;
48		-	(3) a former employee of the state;
49		-	(4) counsel to the state;
50		-	(5) an agent of the state; or
51		-	(6) any other person;
52		-	may not divulge information related to any internal audit or risk
53		-	assessment conducted by or on behalf of the state.
54		-	(e) Notwithstanding subsection (d), an entity or individual listed
55		-	in subsection (d) may divulge information related to an internal
56		-	audit or risk assessment conducted by or on behalf of the state to:
57		-	(1) the state examiner or the state examiner's designee;
58		-	(2) the director of the office of management and budget or the
59		-	director of the office of management and budget's designee;
60		-	(3) an external auditor, in accordance with professional
61		-	auditing standards; or
62		-	(4) any other individual for any reason that constitutes good
63		-	cause as determined by the state examiner and approved by
64		-	the director of the office of management and budget.
65		-	SECTION 2. IC 5-11-5-1, AS AMENDED BY P.L.59-2023,
66		-	SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
67		-	JULY 1, 2024]: Sec. 1. (a) Whenever an examination is made under
68		-	this article, a report of the examination shall be made. The report must
69		-	include a list of findings and shall be signed and verified by the
70		-	examiner making the examination. A finding that is critical of an
71		-	examined entity must be based upon one (1) of the following:
72		-	(1) Failure of the entity to observe a uniform compliance
73		-	guideline established under IC 5-11-1-24(a).
74		-	(2) Failure of the entity to comply with a specific law.
75		-	A report that includes a finding that is critical of an examined entity
76		-	must designate the uniform compliance guideline or the specific law
77		-	upon which the finding is based. Except as provided in subsection (g),
78		-	the state board of accounts may issue confidential management letters,
79		-	SEA 221 3
80		-	based on professional auditing standards, to an audited entity (as
81		-	defined in section 1.5(a) of this chapter) in a situation involving
82		-	noncompliance that does not result in the establishment of a corrective
83		-	action plan but that must be brought to the attention of the audited
84		-	entity's governing body. If issues addressed in the confidential
85		-	management letter become part of a finding in the subsequent audit
86		-	period, it shall be noted in the public report. The state examiner shall
87		-	file one (1) copy of the report with the entity examined, one (1) copy
88		-	in an electronic format on a public website, and one (1) copy in an
89		-	electronic format under IC 5-14-6 with the legislative services agency,
90		-	as staff to the audit committee and the general assembly. A report is
91		-	open to public inspection at all reasonable times after it is filed. If an
92		-	examination discloses malfeasance, misfeasance, or nonfeasance in
93		-	office or of any officer or employee, a copy of the report, signed and
94		-	verified, shall be placed by the state examiner with the attorney general
95		-	and the inspector general. The attorney general shall diligently institute
96		-	and prosecute civil proceedings against the persons or entities charged
97		-	in such report, or upon the officer's or employee's official bond, or both,
98		-	and against any other proper person that will secure to the state or to
99		-	the proper municipality the recovery of any funds misappropriated,
100		-	diverted, or unaccounted for.
101		-	(b) Before an examination report is signed, verified, and filed as
102		-	required by subsection (a), the officer or the chief executive officer of
103		-	the state office, municipality, or entity examined must have an
104		-	opportunity to review the report and to file with the state examiner a
105		-	written response to that report. If a written response is filed, it becomes
106		-	a part of the examination report that is signed, verified, and filed as
107		-	required by subsection (a). As part of the review of the examination
108		-	report, the state examiner shall hold a gathering of the officer or chief
109		-	executive officer of the state office, municipality, or entity examined,
110		-	any employees or agents of the state office, municipality, or entity
111		-	examined who are requested to attend by the officer or chief executive
112		-	officer of the state office, municipality, or entity examined, and the
113		-	members of the legislative and fiscal bodies of the municipality or
114		-	entity examined. Such a gathering is referred to as an "exit conference"
115		-	for purposes of this subsection. The following apply to an exit
116		-	conference:
117		-	(1) All information discussed and materials presented or delivered
118		-	by any person during an exit conference are confidential and may
119		-	not be discussed or shared publicly until the earliest of the
120		-	occurrences set forth in subsection (g). However, the information
121		-	discussed and materials presented or delivered during an exit
122		-	SEA 221 4
123		-	conference may be shared with an officer, employee, consultant,
124		-	adviser, or attorney of the officer or chief executive officer of the
125		-	state office, municipality, or entity examined who was not present
126		-	at the exit conference. An individual with whom information and
127		-	materials are shared must maintain the confidentiality of the
128		-	information and materials as provided in this subdivision until the
129		-	earliest of the occurrences set forth in subsection (g).
130		-	(2) An individual attending an exit conference may not
131		-	electronically record the exit conference.
132		-	(3) If a majority of a governing body (as defined in
133		-	IC 5-14-1.5-2(b)) is present during an exit conference, or any
134		-	conference initiated by the state examiner to discuss an
135		-	examination status, the governing body shall be considered in an
136		-	executive session under IC 5-14-1.5. However, the governing
137		-	body has no obligation to give notice as prescribed by
138		-	IC 5-14-1.5-5 when it participates in the exit conference or any
139		-	conference initiated by the state examiner to discuss an
140		-	examination status.
141		-	(4) If the state examiner determines after the exit conference that
142		-	additional actions must be undertaken by a deputy examiner, field
143		-	examiner, or private examiner with respect to information
144		-	discussed or materials presented at the exit conference, the state
145		-	examiner may call for an additional exit conference to be held.
146		-	(c) If an examination report shows or discloses the commission of
147		-	a crime by any person, it is the duty of the state examiner to transmit
148		-	and present the examination report to the prosecuting attorney of the
149		-	county in which the crime was committed. The state examiner shall
150		-	furnish to the prosecuting attorney all evidence at the state examiner's
151		-	command necessary in the investigation and prosecution of the crime.
152		-	(d) If, during an examination under this article, a deputy examiner,
153		-	field examiner, or private examiner acting as an agent of the state
154		-	examiner determines that the following conditions are satisfied, the
155		-	examiner shall report the determination to the state examiner:
156		-	(1) A substantial amount of public funds has been
157		-	misappropriated or diverted.
158		-	(2) The deputy examiner, field examiner, or private examiner
159		-	acting as an agent of the state examiner has a reasonable belief
160		-	that the malfeasance or misfeasance that resulted in the
161		-	misappropriation or diversion of the public funds was committed
162		-	by the officer or an employee of the office or entity.
163		-	(e) After receiving a preliminary report under subsection (d), the
164		-	state examiner may provide a copy of the report to the attorney general.
165		-	SEA 221 5
166		-	The attorney general may institute and prosecute civil proceedings
167		-	against the persons or entities charged in such report, or upon the
168		-	officer's or employee's official bond, or both, and against any other
169		-	proper person that will secure to the state or to the proper municipality
170		-	the recovery of any funds misappropriated, diverted, or unaccounted
171		-	for.
172		-	(f) In an action under subsection (e), the attorney general may attach
173		-	the defendant's property under IC 34-25-2.
174		-	(g) Except as permitted in this section, the information and materials
175		-	that are part of an exit conference under subsection (b), and the results
176		-	of an examination or investigation, including a preliminary report
177		-	under subsection (d), are confidential until the occurrence of the
178		-	earliest of the following:
179		-	(1) The final report is made public under subsection (a).
180		-	(2) The attorney general institutes an action under subsection (e)
181		-	on the basis of the preliminary report.
182		-	(3) The results of an examination or investigation are published
183		-	by direction of the state examiner or any court.
184		-	(h) Except as permitted in this section, an individual, a public
185		-	agency (as defined in IC 5-14-3-2), a public employee, a public official,
186		-	or an employee or officer of a contractor or subcontractor of a public
187		-	agency that knowingly or intentionally discloses information in
188		-	violation of subsection (b) or (g), regardless of whether the information
189		-	is received orally or by any other means, is subject to the following:
190		-	(1) A public agency (as defined in IC 5-14-3-2), a public
191		-	employee, a public official, or an employee or officer of a
192		-	contractor or subcontractor of a public agency commits a Class A
193		-	infraction under IC 5-14-3-10.
194		-	(2) If the disclosure is by a person who is not described in
195		-	subdivision (1), the person commits a Class A infraction.
196		-	(i) Unless in accordance with a judicial order or as otherwise
197		-	provided in this section, the state board of accounts or its employees,
198		-	former employees, counsel, or agents, or any other person may not
199		-	divulge the examination workpapers and investigation records of a
200		-	deputy examiner, a field examiner, or a private examiner acting as an
201		-	agent of the state examiner, except to:
202		-	(1) employees and members of the state board of accounts;
203		-	(2) the audit committee;
204		-	(3) law enforcement officers, the attorney general, a prosecuting
205		-	attorney, or any other legal representative of the state in any
206		-	action with respect to the misappropriation or diversion of public
207		-	funds;
208		-	SEA 221 6
209		-	(4) an authorized representative of the United States;
210		-	(5) a successor examiner or auditor, in accordance with applicable
211		-	professional auditing standards; or
212		-	(6) another individual for any other factor that constitutes good
213		-	cause as set forth in criteria established by the state examiner and
214		-	approved by the audit committee.
215		-	(j) An individual described in subsection (i)(3) or (i)(4) who
216		-	receives examination workpapers and investigation records described
217		-	in subsection (i) may divulge the workpapers and records in any action
218		-	with respect to the misappropriation or diversion of public funds.
219		-	SECTION 3. IC 5-11-14-2, AS AMENDED BY P.L.58-2023,
	65	+	1 SECTION 1. IC 5-11-1-28, AS AMENDED BY THE TECHNICAL
	66	+	2 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
	67	+	3 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]:
	68	+	4 Sec. 28. (a) The bureau of motor vehicles (IC 9-14-7-1), office of the
	69	+	5 secretary of family and social services (IC 12-8-1.5-1), and department
	70	+	6 of state revenue (IC 6-8.1-2-1) shall each annually:
	71	+	7 (1) have performed by an internal auditor:
	72	+	8 (A) an internal audit; and
	73	+	9 (B) a review of internal control systems;
	74	+	10 of the agency; and
	75	+	11 (2) have the internal auditor report the results of the internal audit
	76	+	12 and review to an examiner designated by the state examiner to
	77	+	13 receive the results.
	78	+	14 (b) The examiner designated under subsection (a) shall, not later
	79	+	15 than September 1 of each year:
	80	+	16 (1) compile a final report of the results of the internal audits and
	81	+	17 reviews performed and reported under subsection (a); and
	82	+	ES 221—LS 6397/DI 134 2
	83	+	1 (2) submit a copy of the final report to the following:
	84	+	2 (A) The governor.
	85	+	3 (B) The auditor of state comptroller.
	86	+	4 (C) The chairperson of the audit committee, in an electronic
	87	+	5 format under IC 5-14-6.
	88	+	6 (D) The director of the office of management and budget.
	89	+	7 (E) The legislative council, in an electronic format under
	90	+	8 IC 5-14-6.
	91	+	9 (c) An internal audit or risk assessment conducted by or on
	92	+	10 behalf of the state shall remain confidential, except as provided in
	93	+	11 subsection (e).
	94	+	12 (d) Except as provided in subsection (e), or in accordance with
	95	+	13 a judicial order:
	96	+	14 (1) the state;
	97	+	15 (2) an employee of the state;
	98	+	16 (3) a former employee of the state;
	99	+	17 (4) counsel to the state;
	100	+	18 (5) an agent of the state; or
	101	+	19 (6) any other person;
	102	+	20 may not divulge information related to any internal audit or risk
	103	+	21 assessment conducted by or on behalf of the state.
	104	+	22 (e) Notwithstanding subsection (d), an entity or individual listed
	105	+	23 in subsection (d) may divulge information related to an internal
	106	+	24 audit or risk assessment conducted by or on behalf of the state to:
	107	+	25 (1) the state examiner or the state examiner's designee;
	108	+	26 (2) the director of the office of management and budget or the
	109	+	27 director of the office of management and budget's designee;
	110	+	28 (3) an external auditor, in accordance with professional
	111	+	29 auditing standards; or
	112	+	30 (4) any other individual for any reason that constitutes good
	113	+	31 cause as determined by the state examiner and approved by
	114	+	32 the director of the office of management and budget.
	115	+	33 SECTION 2. IC 5-11-5-1, AS AMENDED BY P.L.59-2023,
	116	+	34 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	117	+	35 JULY 1, 2024]: Sec. 1. (a) Whenever an examination is made under
	118	+	36 this article, a report of the examination shall be made. The report must
	119	+	37 include a list of findings and shall be signed and verified by the
	120	+	38 examiner making the examination. A finding that is critical of an
	121	+	39 examined entity must be based upon one (1) of the following:
	122	+	40 (1) Failure of the entity to observe a uniform compliance
	123	+	41 guideline established under IC 5-11-1-24(a).
	124	+	42 (2) Failure of the entity to comply with a specific law.
	125	+	ES 221—LS 6397/DI 134 3
	126	+	1 A report that includes a finding that is critical of an examined entity
	127	+	2 must designate the uniform compliance guideline or the specific law
	128	+	3 upon which the finding is based. Except as provided in subsection (g),
	129	+	4 the state board of accounts may issue confidential management letters,
	130	+	5 based on professional auditing standards, to an audited entity (as
	131	+	6 defined in section 1.5(a) of this chapter) in a situation involving
	132	+	7 noncompliance that does not result in the establishment of a corrective
	133	+	8 action plan but that must be brought to the attention of the audited
	134	+	9 entity's governing body. If issues addressed in the confidential
	135	+	10 management letter become part of a finding in the subsequent audit
	136	+	11 period, it shall be noted in the public report. The state examiner shall
	137	+	12 file one (1) copy of the report with the entity examined, one (1) copy
	138	+	13 in an electronic format on a public website, and one (1) copy in an
	139	+	14 electronic format under IC 5-14-6 with the legislative services agency,
	140	+	15 as staff to the audit committee and the general assembly. A report is
	141	+	16 open to public inspection at all reasonable times after it is filed. If an
	142	+	17 examination discloses malfeasance, misfeasance, or nonfeasance in
	143	+	18 office or of any officer or employee, a copy of the report, signed and
	144	+	19 verified, shall be placed by the state examiner with the attorney general
	145	+	20 and the inspector general. The attorney general shall diligently institute
	146	+	21 and prosecute civil proceedings against the persons or entities charged
	147	+	22 in such report, or upon the officer's or employee's official bond, or both,
	148	+	23 and against any other proper person that will secure to the state or to
	149	+	24 the proper municipality the recovery of any funds misappropriated,
	150	+	25 diverted, or unaccounted for.
	151	+	26 (b) Before an examination report is signed, verified, and filed as
	152	+	27 required by subsection (a), the officer or the chief executive officer of
	153	+	28 the state office, municipality, or entity examined must have an
	154	+	29 opportunity to review the report and to file with the state examiner a
	155	+	30 written response to that report. If a written response is filed, it becomes
	156	+	31 a part of the examination report that is signed, verified, and filed as
	157	+	32 required by subsection (a). As part of the review of the examination
	158	+	33 report, the state examiner shall hold a gathering of the officer or chief
	159	+	34 executive officer of the state office, municipality, or entity examined,
	160	+	35 any employees or agents of the state office, municipality, or entity
	161	+	36 examined who are requested to attend by the officer or chief executive
	162	+	37 officer of the state office, municipality, or entity examined, and the
	163	+	38 members of the legislative and fiscal bodies of the municipality or
	164	+	39 entity examined. Such a gathering is referred to as an "exit conference"
	165	+	40 for purposes of this subsection. The following apply to an exit
	166	+	41 conference:
	167	+	42 (1) All information discussed and materials presented or delivered
	168	+	ES 221—LS 6397/DI 134 4
	169	+	1 by any person during an exit conference are confidential and may
	170	+	2 not be discussed or shared publicly until the earliest of the
	171	+	3 occurrences set forth in subsection (g). However, the information
	172	+	4 discussed and materials presented or delivered during an exit
	173	+	5 conference may be shared with an officer, employee, consultant,
	174	+	6 adviser, or attorney of the officer or chief executive officer of the
	175	+	7 state office, municipality, or entity examined who was not present
	176	+	8 at the exit conference. An individual with whom information and
	177	+	9 materials are shared must maintain the confidentiality of the
	178	+	10 information and materials as provided in this subdivision until the
	179	+	11 earliest of the occurrences set forth in subsection (g).
	180	+	12 (2) An individual attending an exit conference may not
	181	+	13 electronically record the exit conference.
	182	+	14 (3) If a majority of a governing body (as defined in
	183	+	15 IC 5-14-1.5-2(b)) is present during an exit conference, or any
	184	+	16 conference initiated by the state examiner to discuss an
	185	+	17 examination status, the governing body shall be considered in an
	186	+	18 executive session under IC 5-14-1.5. However, the governing
	187	+	19 body has no obligation to give notice as prescribed by
	188	+	20 IC 5-14-1.5-5 when it participates in the exit conference or any
	189	+	21 conference initiated by the state examiner to discuss an
	190	+	22 examination status.
	191	+	23 (4) If the state examiner determines after the exit conference that
	192	+	24 additional actions must be undertaken by a deputy examiner, field
	193	+	25 examiner, or private examiner with respect to information
	194	+	26 discussed or materials presented at the exit conference, the state
	195	+	27 examiner may call for an additional exit conference to be held.
	196	+	28 (c) If an examination report shows or discloses the commission of
	197	+	29 a crime by any person, it is the duty of the state examiner to transmit
	198	+	30 and present the examination report to the prosecuting attorney of the
	199	+	31 county in which the crime was committed. The state examiner shall
	200	+	32 furnish to the prosecuting attorney all evidence at the state examiner's
	201	+	33 command necessary in the investigation and prosecution of the crime.
	202	+	34 (d) If, during an examination under this article, a deputy examiner,
	203	+	35 field examiner, or private examiner acting as an agent of the state
	204	+	36 examiner determines that the following conditions are satisfied, the
	205	+	37 examiner shall report the determination to the state examiner:
	206	+	38 (1) A substantial amount of public funds has been
	207	+	39 misappropriated or diverted.
	208	+	40 (2) The deputy examiner, field examiner, or private examiner
	209	+	41 acting as an agent of the state examiner has a reasonable belief
	210	+	42 that the malfeasance or misfeasance that resulted in the
	211	+	ES 221—LS 6397/DI 134 5
	212	+	1 misappropriation or diversion of the public funds was committed
	213	+	2 by the officer or an employee of the office or entity.
	214	+	3 (e) After receiving a preliminary report under subsection (d), the
	215	+	4 state examiner may provide a copy of the report to the attorney general.
	216	+	5 The attorney general may institute and prosecute civil proceedings
	217	+	6 against the persons or entities charged in such report, or upon the
	218	+	7 officer's or employee's official bond, or both, and against any other
	219	+	8 proper person that will secure to the state or to the proper municipality
	220	+	9 the recovery of any funds misappropriated, diverted, or unaccounted
	221	+	10 for.
	222	+	11 (f) In an action under subsection (e), the attorney general may attach
	223	+	12 the defendant's property under IC 34-25-2.
	224	+	13 (g) Except as permitted in this section, the information and materials
	225	+	14 that are part of an exit conference under subsection (b), and the results
	226	+	15 of an examination or investigation, including a preliminary report
	227	+	16 under subsection (d), are confidential until the occurrence of the
	228	+	17 earliest of the following:
	229	+	18 (1) The final report is made public under subsection (a).
	230	+	19 (2) The attorney general institutes an action under subsection (e)
	231	+	20 on the basis of the preliminary report.
	232	+	21 (3) The results of an examination or investigation are published
	233	+	22 by direction of the state examiner or any court.
	234	+	23 (h) Except as permitted in this section, an individual, a public
	235	+	24 agency (as defined in IC 5-14-3-2), a public employee, a public official,
	236	+	25 or an employee or officer of a contractor or subcontractor of a public
	237	+	26 agency that knowingly or intentionally discloses information in
	238	+	27 violation of subsection (b) or (g), regardless of whether the information
	239	+	28 is received orally or by any other means, is subject to the following:
	240	+	29 (1) A public agency (as defined in IC 5-14-3-2), a public
	241	+	30 employee, a public official, or an employee or officer of a
	242	+	31 contractor or subcontractor of a public agency commits a Class A
	243	+	32 infraction under IC 5-14-3-10.
	244	+	33 (2) If the disclosure is by a person who is not described in
	245	+	34 subdivision (1), the person commits a Class A infraction.
	246	+	35 (i) Unless in accordance with a judicial order or as otherwise
	247	+	36 provided in this section, the state board of accounts or its employees,
	248	+	37 former employees, counsel, or agents, or any other person may not
	249	+	38 divulge the examination workpapers and investigation records of a
	250	+	39 deputy examiner, a field examiner, or a private examiner acting as an
	251	+	40 agent of the state examiner, except to:
	252	+	41 (1) employees and members of the state board of accounts;
	253	+	42 (2) the audit committee;
	254	+	ES 221—LS 6397/DI 134 6
	255	+	1 (3) law enforcement officers, the attorney general, a prosecuting
	256	+	2 attorney, or any other legal representative of the state in any
	257	+	3 action with respect to the misappropriation or diversion of public
	258	+	4 funds;
	259	+	5 (4) an authorized representative of the United States;
	260	+	6 (5) a successor examiner or auditor, in accordance with applicable
	261	+	7 professional auditing standards; or
	262	+	8 (6) another individual for any other factor that constitutes good
	263	+	9 cause as set forth in criteria established by the state examiner and
	264	+	10 approved by the audit committee.
	265	+	11 (j) An individual described in subsection (i)(3) or (i)(4) who
	266	+	12 receives examination workpapers and investigation records described
	267	+	13 in subsection (i) may divulge the workpapers and records in any action
	268	+	14 with respect to the misappropriation or diversion of public funds.
	269	+	15 SECTION 3. IC 5-11-14-2, AS AMENDED BY P.L.58-2023,
	270	+	16 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	271	+	17 JULY 1, 2024]: Sec. 2. (a) The state board of accounts shall annually
	272	+	18 conduct a training institute for clerk-treasurers and may conduct a
	273	+	19 training institute for city clerks, either of the entire state or by districts.
	274	+	20 The provisions of this chapter are applicable to any such training
	275	+	21 institute.
	276	+	22 (b) The state board of accounts shall keep attendance of
	277	+	23 clerk-treasurers at each conference called by the state board of
	278	+	24 accounts and publish the attendance on the state board of accounts'
	279	+	25 website.
	280	+	26 (c) Clerk-treasurers and city clerks must attend the annual training
	281	+	27 institute a minimum of once every two (2) years.
	282	+	28 SECTION 4. IC 36-2-9-2.5, AS AMENDED BY P.L.257-2019,
	283	+	29 SECTION 104, IS AMENDED TO READ AS FOLLOWS
	284	+	30 [EFFECTIVE JULY 1, 2024]: Sec. 2.5. (a) As used in this section,
	285	+	31 "training courses" refers to training courses related to the office of
	286	+	32 county auditor that are compiled or developed by the Association of
	287	+	33 Indiana Counties and approved by the state board of accounts.
	288	+	34 (b) An individual elected to the office of county auditor shall
	289	+	35 complete at least:
	290	+	36 (1) fifteen (15) hours of training courses within one (1) year; and
	291	+	37 (2) forty (40) hours of training courses within three (3) years;
	292	+	38 after the individual is elected to the office of county auditor.
	293	+	39 (c) An individual first elected to the office of county auditor shall
	294	+	40 complete five (5) hours of newly elected official training courses before
	295	+	41 the individual first takes the office of county auditor. A training course
	296	+	42 that an individual completes under this subsection shall be counted
	297	+	ES 221—LS 6397/DI 134 7
	298	+	1 toward the requirements under subsection (b).
	299	+	2 (d) An individual shall fulfill the training requirements established
	300	+	3 by subsection (b) for each term to which the individual is elected as
	301	+	4 county auditor.
	302	+	5 (e) The failure of an individual to complete the training required by
	303	+	6 this section does not prevent the individual from taking an office to
	304	+	7 which the individual was elected.
	305	+	8 (f) This subsection applies only to an individual appointed to fill a
	306	+	9 vacancy in the office of county auditor. An individual described in this
	307	+	10 subsection may, but is not required to, take training courses required by
	308	+	11 subsection (b). If an individual described in this subsection takes a
	309	+	12 training course required by subsection (b) for an elected county auditor,
	310	+	13 the county shall pay for the training course as if the individual had been
	311	+	14 an elected county auditor.
	312	+	15 (g) An individual elected to the office of county auditor shall
	313	+	16 annually certify completion of the requirements described in
	314	+	17 subsection (b). The certification must be in the form and content
	315	+	18 prescribed by the state examiner and filed electronically in the
	316	+	19 manner prescribed under IC 5-14-3.8-7.
	317	+	20 SECTION 5. IC 36-4-10-8, AS AMENDED BY P.L.58-2023,
	318	+	21 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	319	+	22 UPON PASSAGE]: Sec. 8. (a) As used in this section, "training
	320	+	23 courses" refers to training courses, workshops, training institutes
	321	+	24 authorized by IC 5-11-14, formal academies, special seminars, and
	322	+	25 other in-service training related to an office described in section 2 of
	323	+	26 this chapter that are developed or offered under the rubric of a
	324	+	27 generally accepted professional association, association of governments
	325	+	28 or a state agency or department, or public university or affiliated center.
	326	+	29 (b) An individual elected or appointed to an office described in
	327	+	30 section 2 of this chapter on or after November 5, 2019, shall complete
	328	+	31 at least:
	329	+	32 (1) fourteen (14) hours of training courses within one (1) year;
	330	+	33 and
	331	+	34 (2) thirty-six (36) hours of training courses within three (3) years;
	332	+	35 after the individual is elected or appointed to an office described in
	333	+	36 section 2 of this chapter.
	334	+	37 (c) An individual first elected or appointed to an office described in
	335	+	38 section 2 of this chapter the office of clerk-treasurer or city
	336	+	39 controller shall complete five (5) hours of approved training courses
	337	+	40 before the individual first takes office. A training course that the
	338	+	41 individual completes under this subsection shall be counted toward the
	339	+	42 requirements under subsection (b).
	340	+	ES 221—LS 6397/DI 134 8
	341	+	1 (d) An individual shall fulfill the training requirements established
	342	+	2 by subsection (b) for each term to which the individual is elected or
	343	+	3 appointed to an office described in section 2 of this chapter.
	344	+	4 (e) This subsection applies only to an individual appointed to fill a
	345	+	5 vacancy in an office described in section 2 of this chapter. An
	346	+	6 individual described in this subsection may, but is not required to, take
	347	+	7 training courses required by subsection (b). If an individual described
	348	+	8 in this subsection takes a training course required by subsection (b) for
	349	+	9 an office described in section 2 of this chapter, the city shall pay for the
	350	+	10 training course as if the individual had been elected or appointed to an
	351	+	11 office described in section 2 of this chapter.
	352	+	12 (f) The:
	353	+	13 (1) city executive;
	354	+	14 (2) city legislative body; and
	355	+	15 (3) individual who holds the office described in section 2 of this
	356	+	16 chapter;
	357	+	17 shall use all reasonable means to ensure that the individual who holds
	358	+	18 the office described in section 2 of this chapter complies with the
	359	+	19 training requirements established by this section.
	360	+	20 (g) The individual who holds the office described in section 2 of this
	361	+	21 chapter shall maintain written documentation of the training courses
	362	+	22 that the individual completes toward the requirements of this section.
	363	+	23 (h) If a city reorganizes under IC 36-1.5, the individual who
	364	+	24 performs the functions of an office described in section 2 of this
	365	+	25 chapter for the city shall comply with the training requirements
	366	+	26 established by this section for the reorganized political subdivision.
	367	+	27 (i) An individual elected or appointed to an office described in
	368	+	28 section 2 of this chapter shall certify completion of the requirements
	369	+	29 described in subsection (b) every year and file the certification with the
	370	+	30 state board of accounts in the same manner as the report required in
	371	+	31 IC 5-11-1-4(a).
	372	+	32 SECTION 6. An emergency is declared for this act.
	373	+	ES 221—LS 6397/DI 134 9
	374	+	COMMITTEE REPORT
	375	+	Madam President: The Senate Committee on Tax and Fiscal Policy,
	376	+	to which was referred Senate Bill No. 221, has had the same under
	377	+	consideration and begs leave to report the same back to the Senate with
	378	+	the recommendation that said bill be AMENDED as follows:
	379	+	Page 1, delete lines 1 through 17.
	380	+	Page 2, delete lines 1 through 22.
	381	+	Page 7, between lines 11 and 12, begin a new paragraph and insert:
	382	+	"SECTION 4. IC 5-11-14-2, AS AMENDED BY P.L.58-2023,
220	383		SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
221	384		JULY 1, 2024]: Sec. 2. (a) The state board of accounts shall annually
222	385		conduct a training institute for clerk-treasurers and may conduct a
223	386		training institute for city clerks, either of the entire state or by districts.
224	387		The provisions of this chapter are applicable to any such training
225	388		institute.
226	389		(b) The state board of accounts shall keep attendance of
227	390		clerk-treasurers at each conference called by the state board of
228	391		accounts and publish the attendance on the state board of accounts'
229	392		website.
230	393		(c) Clerk-treasurers and city clerks must attend the annual training
231		-	institute a minimum of once every two (2) years.
232		-	SECTION 4. IC 36-2-9-2.5, AS AMENDED BY P.L.257-2019,
233		-	SECTION 104, IS AMENDED TO READ AS FOLLOWS
234		-	[EFFECTIVE JULY 1, 2024]: Sec. 2.5. (a) As used in this section,
235		-	"training courses" refers to training courses related to the office of
236		-	county auditor that are compiled or developed by the Association of
237		-	Indiana Counties and approved by the state board of accounts.
238		-	(b) An individual elected to the office of county auditor shall
239		-	complete at least:
240		-	(1) fifteen (15) hours of training courses within one (1) year; and
241		-	(2) forty (40) hours of training courses within three (3) years;
242		-	after the individual is elected to the office of county auditor.
243		-	(c) An individual first elected to the office of county auditor shall
244		-	complete five (5) hours of newly elected official training courses before
245		-	the individual first takes the office of county auditor. A training course
246		-	that an individual completes under this subsection shall be counted
247		-	toward the requirements under subsection (b).
248		-	(d) An individual shall fulfill the training requirements established
249		-	by subsection (b) for each term to which the individual is elected as
250		-	county auditor.
251		-	SEA 221 7
252		-	(e) The failure of an individual to complete the training required by
253		-	this section does not prevent the individual from taking an office to
254		-	which the individual was elected.
255		-	(f) This subsection applies only to an individual appointed to fill a
256		-	vacancy in the office of county auditor. An individual described in this
257		-	subsection may, but is not required to, take training courses required by
258		-	subsection (b). If an individual described in this subsection takes a
259		-	training course required by subsection (b) for an elected county auditor,
260		-	the county shall pay for the training course as if the individual had been
261		-	an elected county auditor.
262		-	(g) An individual elected to the office of county auditor shall
263		-	annually certify completion of the requirements described in
264		-	subsection (b). The certification must be in the form and content
265		-	prescribed by the state examiner and filed electronically in the
266		-	manner prescribed under IC 5-14-3.8-7.
267		-	SECTION 5. IC 36-4-10-8, AS AMENDED BY P.L.58-2023,
	394	+	institute a minimum of once every two (2) years.".
	395	+	Page 8, after line 3, begin a new paragraph and insert:
	396	+	"SECTION 6. IC 36-4-10-8, AS AMENDED BY P.L.58-2023,
268	397		SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
269	398		UPON PASSAGE]: Sec. 8. (a) As used in this section, "training
270	399		courses" refers to training courses, workshops, training institutes
271	400		authorized by IC 5-11-14, formal academies, special seminars, and
272	401		other in-service training related to an office described in section 2 of
273	402		this chapter that are developed or offered under the rubric of a
274	403		generally accepted professional association, association of governments
275	404		or a state agency or department, or public university or affiliated center.
276	405		(b) An individual elected or appointed to an office described in
277	406		section 2 of this chapter on or after November 5, 2019, shall complete
278	407		at least:
279	408		(1) fourteen (14) hours of training courses within one (1) year;
280	409		and
281	410		(2) thirty-six (36) hours of training courses within three (3) years;
282	411		after the individual is elected or appointed to an office described in
283	412		section 2 of this chapter.
284	413		(c) An individual first elected or appointed to an office described in
285	414		section 2 of this chapter the office of clerk-treasurer or city
	415	+	ES 221—LS 6397/DI 134 10
286	416		controller shall complete five (5) hours of approved training courses
287	417		before the individual first takes office. A training course that the
288	418		individual completes under this subsection shall be counted toward the
289	419		requirements under subsection (b).
290	420		(d) An individual shall fulfill the training requirements established
291	421		by subsection (b) for each term to which the individual is elected or
292	422		appointed to an office described in section 2 of this chapter.
293	423		(e) This subsection applies only to an individual appointed to fill a
294		-	SEA 221 8
295	424		vacancy in an office described in section 2 of this chapter. An
296	425		individual described in this subsection may, but is not required to, take
297	426		training courses required by subsection (b). If an individual described
298	427		in this subsection takes a training course required by subsection (b) for
299	428		an office described in section 2 of this chapter, the city shall pay for the
300	429		training course as if the individual had been elected or appointed to an
301	430		office described in section 2 of this chapter.
302	431		(f) The:
303	432		(1) city executive;
304	433		(2) city legislative body; and
305	434		(3) individual who holds the office described in section 2 of this
306	435		chapter;
307	436		shall use all reasonable means to ensure that the individual who holds
308	437		the office described in section 2 of this chapter complies with the
309	438		training requirements established by this section.
310	439		(g) The individual who holds the office described in section 2 of this
311	440		chapter shall maintain written documentation of the training courses
312	441		that the individual completes toward the requirements of this section.
313	442		(h) If a city reorganizes under IC 36-1.5, the individual who
314	443		performs the functions of an office described in section 2 of this
315	444		chapter for the city shall comply with the training requirements
316	445		established by this section for the reorganized political subdivision.
317	446		(i) An individual elected or appointed to an office described in
318	447		section 2 of this chapter shall certify completion of the requirements
319	448		described in subsection (b) every year and file the certification with the
320	449		state board of accounts in the same manner as the report required in
321	450		IC 5-11-1-4(a).
322		-	SECTION 6. An emergency is declared for this act.
323		-	SEA 221 President of the Senate
324		-	President Pro Tempore
325		-	Speaker of the House of Representatives
326		-	Governor of the State of Indiana
327		-	Date: Time:
328		-	SEA 221
	451	+	SECTION 7. An emergency is declared for this act.".
	452	+	Renumber all SECTIONS consecutively.
	453	+	and when so amended that said bill do pass.
	454	+	(Reference is to SB 221 as introduced.)
	455	+	ES 221—LS 6397/DI 134 11
	456	+	HOLDMAN, Chairperson
	457	+	Committee Vote: Yeas 14, Nays 0.
	458	+	_____
	459	+	COMMITTEE REPORT
	460	+	Mr. Speaker: Your Committee on Government and Regulatory
	461	+	Reform, to which was referred Senate Bill 221, has had the same under
	462	+	consideration and begs leave to report the same back to the House with
	463	+	the recommendation that said bill do pass.
	464	+	(Reference is to SB 221 as printed January 31, 2024.)
	465	+	MILLER D
	466	+	Committee Vote: Yeas 10, Nays 0
	467	+	ES 221—LS 6397/DI 134