Ethics Lori Torres Indiana Inspector General Jen Cooper

Ethics Lori Torres, Indiana Inspector General Jen Cooper, State Ethics Director, OIG Cathleen Nine-Altevogt, Attorney and Ethics Officer, IDOI

In the Beginning there was an Executive order • Executive Order 05 -03 • Governor Daniels vision • Serve as a public watchdog on behalf of taxpayers • Modeled after federal offices of Inspector General’s which are agency specific at the federal level

Enabling Legislation for the IG Indiana Code 4 -2 -7 -2 Creation of IG • There is established the office of the Inspector General • Consists of the inspector general and staff • Responsible for addressing fraud, waste, abuse, and wrongdoing in agencies • Governor appoints the Inspector General 2005 HB 1002 3

Jurisdiction Indiana Code 4 -2 -7 -1 Jurisdiction of IG Agency is defined as an authority, board, branch, commission, committee, department, division or other instrumentality of the executive, including the administrative, department of state government. It includes a body corporate and politic established as an instrument of the state, such as the Indiana Finance Authority and the Hoosier Lottery. Specifically excluded are the • Judicial department of state government • Legislative department of state government • A political subdivision

Jurisdiction Indiana Code 4 -2 -6 -1 Jurisdiction of IG and Code of Ethics • Employees of the state in executive branch “agencies” • Special state appointees • State elected officials • Lobbyists* • Those with or seeking a business relationship with the state* *Not every rule applies to lobbyists or those with a business relationship

Mission The mission of the Inspector General and staff is to reduce fraud, waste, abuse, mismanagement and wrongdoing in state executive branch agencies. Through education, advice, investigations, prosecutions and legislative recommendations, the Inspector General fosters a culture of integrity that contributes to public confidence in state government.

Code of Ethics • Indiana Code 4 -2 -6 -1 to 17 Code of Ethics • 42 IAC 1 -1 -1 to 1 -11 -1 Statutory as well as administrative rules

State Ethics Commission Indiana Code 4 -2 -6 -2 to 5. 5 State Ethics Commission • Created 1974 • 5 members • Fact Finding Body • Ultimate decision maker on code of ethics • Same jurisdiction over current or former employees, state elected officers, special state appointees, and a person who has or had a business relationship with a state agency. • Meet monthly

Office of Inspector General Structure • 5 special agents who are full law enforcement officers, with authority to arrest, serve warrants, and issue subpoenas. • 5 attorneys assisting the agents with investigations and issuing informal advisory opinions • Investigations and informal advisory opinions are confidential, not subject to APRA disclosures • We post decisions and other helpful information on our website www. in. gov/ig.

Duties Indiana Code 4 -2 -7 -3 requires the Inspector General to: • Initiate, supervise and coordinate investigations • Recommend policies and carry out activities designed to deter, detect, and eradicate fraud, waste, abuse, mismanagement, and misconduct in state government • Receive complaints about criminal activity, violation of Code of Ethics and executive lobbying rules, violations of procurement and conflicts of interest rules • Ensure every employee, state officer, special state appointees, and those with business relationships with the state are properly trained in the Code of Ethics • Provide advice and recommendations to state agencies to reduce or prevent fraud • Recommend legislation to the governor and general assembly to strengthen public integrity laws • Be the repository for financial disclosure forms required to be filed pursuant to IC 4 -2 -6 -8

Confidentiality Indiana Code 4 -2 -7 -8 and 42 IAC 1 -8 -1 The identity of any individual who discloses in good faith information alleging a violation of a law or rule is confidential. It may not be disclosed outside of the office, the governor or other authority unless the IG determines it is in the public interest or the individual consents to disclosure. Investigative records may be kept confidential in whole or in part. Informal advisory opinions issued by the Inspector General and staff are expressions of opinion for the purpose of deliberation and are exempt from APRA disclosure.

What does this mean to me as a regulated entity? • Executive branch lobbyists may not serve as special state appointees, except on advisory bodies. • If you have a business relationship with an agency, you are subject to the nepotism and gift rules. • If you profited by virtue of an employee, state official or special state appointee violation, the commission may revoke your license or permit, revoke the registration of a person registered as a lobbyist or bar you from obtaining a license, permit or lobbying activity with a state officer or agency.

What does this mean to me as a regulated entity? HAVE a Business Relationship SEEK to Influence an employee, state official or special state appointee in Official Capacity

Business Relationship means BUSINESS RELATIONSHIP? ? Dealings of a person Seeking, obtaining, establishing, maintaining or implementing A pecuniary interest in a contract or purchase A license or permit requiring the exercise of judgment or discretion The relationship of a lobbyist, including an unregistered lobbyist

Violations A person with a Business Relationship with an employee’s or special state appointee’s agency shall not provide any gifts or favors if the employee or special state appointee is not permitted to accept them. An individual employed by an agency may not contract with or supervise the work of a business entity of which a relative is a partner, executive officer or sole proprietor.

Code of Ethics What is It? 42 IAC 1 -5 -1 42 IAC 1 -5 -2 42 IAC 1 -5 -3 42 IAC 1 -5 -4 42 IAC 1 -5 -5 42 IAC 1 -5 -6 42 IAC 1 -5 -7 42 IAC 1 -5 -8 42 IAC 1 -5 -9 42 IAC 1 -5 -10 42 IAC 1 -5 -11 42 IAC 1 -5 -12 42 IAC 1 -5 -13 42 IAC 1 -5 -14 42 IAC 1 -5 -15 42 IAC 1 -5 -16 Gifts; Travel Expenses; Waivers Donor Restrictions Honoraria Political Activity Moonlighting Conflicts Of Interests; Decisions And Voting Conflicts Of Interests; Contracts Additional Compensation Bribery Benefiting From Confidential Information Divulging Confidential Information Use Of State Property Ghost Employment Post-employment Restrictions Nepotism Communications by State Officers 16

Code of Ethics Who does it apply to? 1) State employees 2) State officers 3) Special state appointees 4) Persons who have a business relationship with the State 17

Code of Ethics Why do we need it? “No responsibility of Government is more fundamental than the responsibility for maintaining the highest standards of ethical behavior by those who conduct the public business. There can be no dissent from the principle that all officials must act with unwavering integrity, absolute impartiality, and complete devotion to the public interest. This principle must be followed not only in reality but in appearance. For the basis of effective government is public confidence; and that confidence is endangered when ethical standards falter or appear to falter. ” - President John F. Kennedy April 27, 1961 18

Code of Ethics Gifts Postemployment Conflict of interests Political activity Use of state property 19

Code of Ethics Gifts 20

Gifts State workers: Do not accept a gift from a person who has a business relationship with your agency (42 IAC 1 -5 -1) Those outside of state government: Do not offer a gift to a state employee or special state appointee if you have a business relationship with the employee’s/special state appointee’s agency (42 IAC 1 -5 -2) 21

Gifts What is a gift? • • Gift Favor Service Entertainment Food/Drink Travel expenses Registration Fees What is a “business relationship? ” • Dealings of a person with an agency seeking, obtaining, establishing, maintaining, or implementing: • A license/permit • Pecuniary interest in a contract or purchase When is something not a gift? • Multiple exceptions • Nominal value • Memento/souvenir 22

Additional Compensation State workers cannot accept any additional compensation for doing their job. This includes any money, thing of value, or financial benefit. 23

Application Gift and Additional Compensation scenarios Rule Facts ? 24

Indiana Code of Ethics Conflict OF Interests 25

Conflict of Interests COI: Decisions and Votes – IC 4 -2 -6 -9 COI: Contracts – IC 4 -2 -6 -10. 5 COI: Outside employment/moonlighting – IC 4 -2 -6 -5. 5 26

COI: Decisions and Votes State Workers: Do not participate in decisions/votes, or related matters, if you know that you, an immediate family member, a business organization you serve (as employee, director, officer, member, etc. ), or any person/organization with whom you are negotiating employment has a financial interest in the outcome. 27

COI: Decisions and Votes Relationships Boards and commission members Employment negotiations Outside employment/professional activities 28

Outside employment State workers: do not take a second job that would conflict with your state job; do not use confidential information; do not use your state position for personal gain Outside of state government: though tempting to hire an expert in the field for contract work, consulting, etc. be careful that the state worker will not have a conflict

Application Conflict of Interests Scenarios 30

Code of Ethics Post-employment 31

Post-employment Cooling off requirement - IC 4 -2 -6 -11(b) “revolving door” executive branch lobbying negotiation/administration of state contract regulatory/licensing decisions 32

Post-employment Particular Matter Restriction – IC 4 -2 -6 -11(c) Life of the matter (not limited to one-year) Personal and substantial participation as state worker 33

Post-employment Particular Matters (1) an application (8) a judicial proceeding (2) a business transaction (9) a lawsuit (3) a claim (10) a license (4) a contract (11) an economic development (5) a determination project (6) an enforcement proceeding (12) a public works project (7) an investigation 34

Application Post-employment scenarios Rule Facts ? 35

Code of Ethics Use of State Property 36

Use of State Property Do not use state property for personal reasons. This includes state materials, funds, employees, facilities or equipment. Infrequent, minimal personal use of state property is allowed under your agency’s State Ethics Commission-approved written policy; consult your Ethics Officer if you have questions about this policy. 37

Code of Ethics Political Activity 38

Political Activity State workers may not engage in political activity when on the job or when acting in their official capacity. * State workers may never (even off the job) seek political contributions from: 1. A person who has a business relationship with their agency; or 2. Employees they supervise. * State workers who serve as agency appointing authorities or who have purchasing or procurement authority may never seek political contributions for any candidate (unless they are a candidate themselves) 39

Quiz Test your ethics knowledge! (Time Permitting. ) 40

Final takeaways Know the rules Resources Application 41