Saturday, January 09, 2016

Legislation Seeks To End Pay-To-Play In Local Government

State Sen. Liz Brown (R-Fort Wayne) has introduced SB 367, which would prohibit local government contractors from making political contributions to local elected officials responsible for those contracting decisions and for a period of time after a contract is awarded. "Taxpayers expect their government officials to operate with the highest levels of transparency and ethical decision making," Brown said in a press release. "Senate Bill 367 will ensure that local officials aren’t being swayed to award or maintain government contracts by political contributions to their personal campaigns. Hoosiers don’t want their officials involved in pay-to-play schemes."

The prohibition contained in SB 367 applies to current contract holders and those bidding on contracts. For a current contract holder, the ban begins on the date the contract is awarded in ends on the later of four (4) years after the date the contract is awarded, or one year after the expiration or termination of the contract. For those who don't currently have a contract, the prohibition takes effect on the date the solicitation is issued and ends on the date the contract is awarded. Anyone bidding on a contract is required to provide a statement under penalties for perjury that no contributions have been made in violation of the law. Contracts awarded to persons who violate the proposed law are deemed voidable.

Brown's legislation includes a 30-day grace period under which a person who has violated the law can return the contribution and provide a written statement with the local government contract officer. A contract officer can avoid voiding a contract awarded in violation of the law if it is determined that doing so would not be in the best interests of the political subdivision. Offerors found in violation of the law are to be considered non-responsive offerors for a period of three years following the violation. An existing contractor shall be considered a non-responsive offeror for a period of three years only if the contract held by that contractor is voided.

Brown's legislation creates no independent criminal penalties for violation of the law, although it could be argued a person who submits a false statement of compliance with the law could be prosecuted for perjury. It also has no applicability to state government. State elected officials are no less prone to pay-to-play schemes than local government officials. Nonetheless, it's a good start.

12 comments:

LamLawIndy said...

This is perhaps the most taxpayer-friendly piece of legislation introduced so far this year...which means it'll probably not even be assigned to a committee

Anonymous said...

It is a good start. So Gary does this apply to all no bid contract decisions, such as engineering and architectural services, consulting, legal, and others? In addition to contracts for public works (IC chapter 36)? Does it apply to subcontractors, suppliers, subconsultants, etc?

Note in most cases campaign contributions (and true contracting decisions) are made long before the request for proposals hits the street. I suggest expanding the "ban period" to 12 months before the award is made. Don't forget to include fancy meals, expensive event tickets, lucrative make work jobs, etc.

Sounds like an easy work around is to delegate contracting decisions to an appointed board.

Gary R. Welsh said...

It would apply to contracts for supplies or services, including professional services, and public works projects.

Gary R. Welsh said...

And it does apply to subcontractors.

Anonymous said...

So now the down town mofia will get the contracts for free. Don't any any good here.

Anonymous said...

Let me guess this won't be one of those bills the Star will spend the entire session flacking.

Anonymous said...

Another law with no teeth just like our open records law. Just more feel good legislation.

Anonymous said...


Just another buncha BS legislation. Too bad this Republican "legislator" couldn't come up with the idea during uber-corruptocrat bought-and-paid-for Marion County GOP Gregory Ballard's emperor-like reign. Interesting it comes to pass with liberal Democrat Lying Joe's ascendancy.

That this type of proposal is even considered tells us just how much of a swamp these Democrat and Republican career political class types really are.

Gary R. Welsh said...

I suspect Brown's legislation is based on her experience in Fort Wayne where she formerly served on the city council. The current 3-term Democratic mayor has been criticized for trading city contracts for campaign contributions.

John Accetturo said...

It will never pass. Incumbent politicians would lose all their big donors.Just ask these cronies up here in Hamilton County.

Anonymous said...

That's funny, 1:03. I wonder if Indiana will create a the Office of Pay to Play Counselor that always sides with the government and campaign contributors?

Indiana's Open Records Law, as least as it includes a Public Access Counselor has done more harm than good. Records are less open now. I suspect this law is just a way to make corruption more permissible and give it legal cover.

Anonymous said...

So you don't pay the candidates. Doesn't stop contributions to PACs FBO the candidate.