Introduced Version
SENATE BILL No. 417
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-2-7.
Synopsis: Inspector general government efficiency report. Requires
the inspector general to annually do the following: (1) Beginning in
2026, prepare a current list of all boards, committees, and commissions
of the executive, including administrative branch (commissions), and
send the list to the legislative council. (2) Beginning in 2027, conduct
efficiency reviews of at least 25% of the active commissions and report
the review results to the legislative council.
Effective: July 1, 2025.
Carrasco
January 13, 2025, read first time and referred to Committee on Judiciary.
2025 IN 417—LS 7498/DI 87 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 417
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-2-7-3, AS AMENDED BY P.L.201-2023,
2 SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 3. The inspector general shall do the following:
4 (1) Initiate, supervise, and coordinate investigations.
5 (2) Recommend policies and carry out other activities designed to
6 deter, detect, and eradicate fraud, waste, abuse, mismanagement,
7 and misconduct in state government.
8 (3) Receive complaints alleging the following:
9 (A) A violation of the code of ethics.
10 (B) Bribery (IC 35-44.1-1-2).
11 (C) Official misconduct (IC 35-44.1-1-1).
12 (D) Conflict of interest (IC 35-44.1-1-4).
13 (E) Profiteering from public service (IC 35-44.1-1-5).
14 (F) A violation of the executive branch lobbying rules.
15 (G) A violation of a statute or rule relating to the purchase of
16 goods or services by a current or former employee, state
17 officer, special state appointee, lobbyist, or person who has a
2025 IN 417—LS 7498/DI 87 2
1 business relationship with an agency.
2 (4) If the inspector general has reasonable cause to believe that a
3 crime has occurred or is occurring, report the suspected crime to:
4 (A) the governor; and
5 (B) appropriate state or federal law enforcement agencies and
6 prosecuting authorities having jurisdiction over the matter.
7 (5) Adopt rules under IC 4-22-2 to implement IC 4-2-6 and this
8 chapter.
9 (6) Adopt rules under IC 4-22-2 and section 5 of this chapter to
10 implement a code of ethics.
11 (7) Ensure that every:
12 (A) employee;
13 (B) state officer;
14 (C) special state appointee; and
15 (D) person who has a business relationship with an agency;
16 is properly trained in the code of ethics.
17 (8) Provide advice to an agency on developing, implementing,
18 and enforcing policies and procedures to prevent or reduce the
19 risk of fraudulent or wrongful acts within the agency.
20 (9) Provide informal advisory opinions to current, former, and
21 prospective state employees, state officers, and special state
22 appointees. An informal advisory opinion issued by the office of
23 the inspector general is confidential under IC 5-14-3-4, including
24 any previously issued informal advisory opinion by the office of
25 the inspector general that recites that it is confidential.
26 (10) Recommend legislation to the governor and general assembly
27 to strengthen public integrity laws, including the code of ethics
28 for state officers, employees, special state appointees, and persons
29 who have a business relationship with an agency, including
30 whether additional specific state officers, employees, or special
31 state appointees should be required to file a financial disclosure
32 statement under IC 4-2-6-8.
33 (11) Annually submit a report to the legislative council detailing
34 the inspector general's activities. The report must be in an
35 electronic format under IC 5-14-6.
36 (12) Prescribe and provide forms for statements required to be
37 filed under IC 4-2-6 or this chapter.
38 (13) Accept and file information that:
39 (A) is voluntarily supplied; and
40 (B) exceeds the requirements of this chapter.
41 (14) Inspect financial disclosure forms.
42 (15) Notify persons who fail to file forms required under IC 4-2-6
2025 IN 417—LS 7498/DI 87 3
1 or this chapter.
2 (16) Develop a filing, a coding, and an indexing system required
3 by IC 4-2-6 and IC 35-44.1-1.
4 (17) Prepare interpretive and educational materials and programs.
5 (18) Annually:
6 (A) conduct efficiency reviews; and
7 (B) report to the legislative council in an electronic format
8 under IC 5-14-6;
9 under section 3.5 of this chapter.
10 SECTION 2. IC 4-2-7-3.5 IS ADDED TO THE INDIANA CODE
11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
12 1, 2025]: Sec. 3.5. (a) As used in this section, "commission" means
13 a board, committee, or commission of the executive, including the
14 administrative, department of state government that is authorized
15 by statute or executive order and functions in a policy or advisory
16 role. The term includes a body corporate and politic established as
17 an instrumentality of the state.
18 (b) Not later than July 1, 2026, and before every July 1
19 thereafter, the inspector general shall do the following:
20 (1) Compile a list of all commissions.
21 (2) Indicate whether each commission on the list functions as
22 an advisory body or policy making body that has the
23 authority in statute or executive order to make policy or
24 regulatory decisions on behalf of a state agency.
25 (3) Send the list, including annual updates, to the legislative
26 council in an electronic format under IC 5-14-6.
27 (c) Not later than July 1, 2027, and before every July 1
28 thereafter, the inspector general shall:
29 (1) conduct an efficiency review of not less than twenty-five
30 percent (25%) of the commissions still authorized by statute
31 or executive order; and
32 (2) report the results of the efficiency review to the legislative
33 council in an electronic format under IC 5-14-6.
34 The inspector general shall have discretion in selecting which
35 commissions to review each year.
36 (d) The inspector general shall conduct an efficiency review for
37 each commission on the list created under subsection (b)(1) at least
38 once every four (4) years.
39 (e) The report under subsection (c) shall include the following:
40 (1) The results of the efficiency review of active commissions
41 under subsection (c)(1). A commission selected for review
42 shall be evaluated as to whether the commission:
2025 IN 417—LS 7498/DI 87 4
1 (A) creates clear and measurable net economic or other
2 tangible benefits that accrue generally to all citizens of the
3 state, even in the absence of federal funding;
4 (B) clearly fills a necessary function that only the
5 government can fill;
6 (C) is fulfilling the commission's function as provided in
7 statute or executive order;
8 (D) is likely to result in a financial obligation to the state;
9 (E) is using funds appropriated by the general assembly for
10 the purpose of accomplishing the commission's intended
11 purpose; and
12 (F) is required by federal law.
13 (2) An analysis of how the state may allocate resources
14 currently provided to the commissions reviewed under
15 subsection (c)(1) in a more efficient and fiscally responsible
16 manner, including:
17 (A) streamlining, reorganizing, consolidating, contracting
18 out, or eliminating functions performed by the
19 commission;
20 (B) if a commission is overstaffed, reducing duplicative
21 staffing;
22 (C) if a commission is understaffed, ensuring adequate
23 staffing;
24 (D) increasing the commission's capacity to deliver services
25 and improve responsiveness to citizens;
26 (E) improving the use of cost saving information
27 technology in service delivery and lessening the need for
28 paperwork; and
29 (F) establishing techniques for measuring productivity and
30 evaluating commission performance.
2025 IN 417—LS 7498/DI 87