TAXPAYER FRIENDLY
STATUS: HB 1001 was passed by the House Rules and Legislative Procedures Committee 9-0 on December 16, 2009.
TESTIMONY - December 16, 2009 - House Rules and Legislative Procedures Committee:
HB 1001 can be evaluated from two vantage points: (1) will the actions of lobbyists and contractors to affect government outcomes become more transparent, and (2) will ordinary citizens have a better chance to affect government outcomes.
HB 1001 is Taxpayer Friendly because it will INDEED make more transparent the actions of lobbyists and contractors to affect government outcomes. The nineteen Taxpayer Friendly provisions of HB 1001 are listed next.
1. The minimum reportable amount for the total daily gifts to a legislator or legislative employee given by a registered lobbyist is reduced from $100 to $50.
2. The minimum reportable amount for a single gift received by a legislator or legislative candidate is reduced from $100 to $50.
3. An individual who holds a state elected office and ceases to hold the state office after June 30, 2010, may not be registered as a lobbyist for 365 days after expiration of the term of office.
4. An individual who holds a position in the executive branch appointed by the Governor (other than a special state appointee) and who ceases to hold that appointment after June 30, 2010, may not be registered as a lobbyist for 365 days after ceasing to hold the appointive position.
5. A member of the General Assembly may not be registered as a lobbyist for 365 days after ceasing to be a member of the General Assembly.
6. The Governor and Governor candidate committees may not solicit campaign contributions, accept campaign contributions, and conduct other fundraising activities during the long session of the General Assembly and during the day before, the day of, and the day after each organization day.
7. Legislators may not solicit campaign contributions, accept campaign contributions, and conduct other fundraising activities during the long session of the General Assembly beginning in January.
8. Persons with contracts with state government, or who bid on contracts with state government, and certain persons affiliated with the contractors and bidders may not make political contributions to an individual who holds a state office or is a candidate for a state office.
9. State employees in the executive branch who have purchasing or procurement authority may not solicit political contributions unless the soliciting individual is a candidate for public office.
10. If a candidate or a candidate’s committee receives a contribution from a person who is prohibited from making a contribution, then they are required to pay an amount equal to the value of the contribution to the Election Division within 30 days of receiving the contribution.
11. The Election Commission shall assess a civil penalty equal to the greater of two times the amount of any prohibited contributions received, or $1,000.
12. Persons with contracts with state government, or who bid on contracts with state government, must register with the Indiana Department of Administration (IDOA).
13. The IDOA must make the information about state contractor registrants available in a searchable database on the IDOA’s web site.
14. State contractor registrants must notify their affiliated persons that they are registered.
15. A civil penalty of not more than $1,000 may be assessed for each business day that a person knowingly or intentionally fails to update a state contractor registration, fails to provide material information on a registration, or states false information on a registration. These penalties are in addition to any investigative costs incurred.
16. Contractors or bidders who violate the registration statutes may be found nonresponsible and have their contracts voided.
17. State officers, employees, and appointees in the executive branch may not accept inherently incompatible outside employment.
18. The Inspector General must create procedures for the issuance of advisory opinions granting approval for certain state employees to have outside employment.
19. If state contractors recklessly, knowingly, or intentionally make prohibited contributions, then they commit a Class B misdemeanor.
Special note should be made of the HB 1001 provisions that keep those who hold a state elected office and a position in the executive branch from joining the lobbyist ranks before a year goes by after they leave their office or position. The public good is NOT served if a public servant is using his current government influence as part of a lobbyist job application.
Special note should also be made of the HB 1001 provisions that keep persons affiliated with state government contractors and bidders, and executive branch employees who have purchasing or procurement authority, from making or soliciting political contributions for state office candidates. These provisions help prevent an egregious potential abuse that has not received a lot of public attention.
The "conflict of interest" provisions in the bill should be deleted. It should be the responsibility of a client to determine if a prospective lobbyist representing other clients involves a conflict of interest.
It is hoped that the legislative gift reports that include the lowered $50 minimum reportable amount will be made accessible online in a searchable database.
Because they require a change of heart rather than legal remedy, HB 1001 cannot be expected to lessen the obstacles to ordinary citizen Statehouse influence that are listed next.
(1) Ordinary citizens will have no greater success in getting face-to-face meetings with their Governor and General Assembly leaders to discuss important legislative matters.
(2) Ordinary citizens will have no greater success in getting their Governor and General Assembly leaders to take their phone calls about important legislative matters.
(3) Ordinary citizens will have no greater success in knowing whether or not their Governor and General Assembly leaders have read their letters and E-mails about important legislative matters.
(4) Ordinary citizens will continue to not have the same time as lobbyists to make their points during public hearings.
In conclusion, HB 1001 is Taxpayer Friendly because it will make more transparent the actions of lobbyists and contractors to affect government outcomes. However, HB 1001 will not lessen the obstacles to ordinary citizens trying to influence the decisions made at their Statehouse. On balance, HB 1001 represents a step forward in open governance and should be passed out of this Committee.
From Watchdog Indiana