§ 35.07  NEPOTISM CONTRACTS.
   (A)   Definitions.  The following definitions shall apply to this section as written unless context indicates or requires a different meaning.
      ELECTED OFFICIAL.
         (a)   The executive or a member of the executive body of the unit;
         (b)   A member of the legislative body of the unity; and
         (c)   A member of the fiscal body of the unit.
      RELATIVE. Any of the following:
         (a)   A spouse;
         (b)   A parent or stepparent;
         (c)   A child or stepchild, including an adopted child or stepchild;
         (d)   A brother, sister, stepbrother, or stepsister, including a brother or sister by half blood;
         (e)   A niece or nephew;
         (f)   An aunt or uncle; and
         (g)   A daughter-in-law or son-in-law.
   (B)   Contracting policy.
      (1)   The town may enter into a  contract or renew a contract for the procurement of goods and services or a contract for public works with the following only if the requirements of this section are satisfied and the elected official does not violate IC 35-44-1-3:
         (a)   An individual who is a relative of an elected official; or
         (b)   A business entity that is wholly or partially owned by a relative of an elected official.
      (2)   The town may enter into a contract or renew a contract with an individual or business entity described in division (A) if all of the following are satisfied:
         (a)   The elected official files with the town a full disclosure, which must:
            1.   Be in writing;
            2.   Describe the contract or purchase to be made by the town;
            3.   Describe the relationship that the elected official has to the individual or business entity that contracts or purchases;
            4.   Be affirmed under penalty of perjury;
            5.   Be submitted to the Town Council and be accepted by the Town Council in a public meeting prior to final action on the contract or purchase; and
            6.   Be filed, not later than 15 days after final action on the contract or purchase, with:
               A.   The State Board of Accounts; and
               B.   The Clerk of the Circuit Court in the county where the town takes final action on the contract or purchase.
         (b)   The appropriate agency of the town:
            1.   Makes a certified statement that the contract amount or purchase price was the lowest amount or price bid or offered; or
            2.   Makes a certified statement of the reasons why the vendor or contractor was selected; and
            3.   The town satisfies any other requirements under IC 5-22 or IC 36-1-12.
            4.   The elected official complies with the disclosure provisions of IC 35-44-1-3, if applicable.
         (c)   This section does not affect the initial term of a contract in existence at the time the term of office of the elected official of the town begins.
   (C)   Certification.
      (1)   Each elected officer of the town shall annually certify in writing, subject to the penalties for perjury, that the officer is in compliance with this policy. An officer shall submit the certification to the President of the Town Council not later than December 31 of each year.
      (2)   The annual report filed by the town with the State Board of accounts under IC 5-11-13-1 must include a statement by the Executive of the town stating whether the town has implemented a policy under IC 36-1-21.
(Res. 2012-3, passed 6-5-12)