§ 5-11-6-1 — Taxpayer petition; examination of public documents and structures; prosecutions resulting therefrom

Indiana § 5-11-6-1

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 11: ACCOUNTING FOR PUBLIC FUNDS
• Ch. 6: Additional Powers of State Examiner and Attorney

Text

(a) The state examiner, personally or through the
deputy examiners, field examiners, or private examiners, upon the
petition of twenty-five (25) interested taxpayers showing that effective
local relief has not and cannot be obtained after due effort, shall make
the inquiries, tests, examinations, and investigations that may be
necessary to determine whether:
(1) any public contract has been regularly and lawfully executed
and performed; or
(2) any public work, building, or structure has been or is being
performed, built, or constructed in accordance with the terms and
provisions of the contract, and in compliance with the plans and
specifications, if any.
Upon a written petition of twenty-five (25) taxpayers, the state
examiner may also require all plans, specifications, and estimates to be
submitted to the state examiner for corrections and approval before a
contract is awarded.
(b) The state examiner, deputy examiner, and any field examiner,
when engaged in making an inquiry, test, examination, or investigation
under subsection (a), is entitled to examine and inspect any public
records, documents, data, contracts, plans, and specifications contained
or found in any public office or other place pertaining or relating to the
public contract or public work, building, or structure. In addition,
subpoenas may be issued to witnesses to appear before the examiner in
person or to produce books and papers for inspection and examination.
The state examiner, deputy, field, and private examiner may administer
oaths and examine witnesses under oath either orally or by
interrogatories on all matters under examination and investigation.
Under order of the state examiner, the examination may be transcribed,
with the reasonable expense paid by the municipality in the same
manner as the compensation of the field examiner is paid.
(c) The state examiner, the deputy examiner, and a field examiner
may enforce attendance and answers to questions and interrogatories,
as provided by law, with respect to examinations and investigations
made by the state examiner, deputy examiner, field examiner, or
private examiner of public offices.
(d) The state examiner, deputy examiner, any field examiner, and
any private examiner, when making an examination or investigation
under subsection (a), shall examine, inspect, and test the public works,
buildings, or structures in the manner that the examiner sees fit to
determine whether it is being performed, built, or constructed
according to the contract and plans and specifications.
(e) The state examiner shall file a report covering any examination
or investigation that discloses:
(1) fraud, collusion, misconduct, or negligence in the letting or
the execution of any public contract or in the performance of any
of the terms and conditions of any public contract; or
(2) any failure to comply with the terms or conditions of any
public contract in the construction of any public work, building,
or structure or to perform, build, or construct it according to the
plans and specifications, if any, provided in the contract;
that causes loss, injury, waste, or damage to the state, the municipality,
taxing or assessment district, other public entity, or to its citizens, if it
is enforceable by assessment or taxation.
(f) The report must meet the following requirements:
(1) The report must be made, signed, and verified in
quadruplicate by the examiner making the examination.
(2) The report shall be filed promptly with the state examiner.
After inspection of the report, the state examiner shall file a copy of the
report promptly with the attorney general and the inspector general.
(g) The attorney general shall diligently institute and prosecute civil
proceedings against any or all officers, individuals, and persons in the
form and manner that the attorney general determines will secure a
proper recovery to the state, municipality, taxing or assessment district,
or other public entity injured, defrauded, or damaged by the matters in
the report. These prosecutions may be made by the attorney general and
the recovery may be had, either upon public official bonds, contractors'
bonds, surety or other bonds, or upon individual liability, either upon
contract or in tort, as the attorney general determines is wise. No action
or recovery in any form or manner, or against any party or parties,
precludes further or additional action or recovery in any other form or
manner or against another party, either concurrently with or later found
necessary, to secure complete recovery and restitution with respect to
all matters exhibited, set out, or described in the report. The suits may
be brought in the name of the state on the relation of the attorney
general for the benefit of the state, or the municipality, taxing or
assessment district, or other public entity that may be proper. The
actions brought against any defendants may be joined, as to parties,
form, and causes of action, in the manner that the attorney general
decides.
(h) Any report described in this article or a copy duly certified by
the state examiner shall be taken and received in any and all courts of
this state as prima facie evidence of the facts stated and contained in
the reports.
(i) If an examination, investigation, or test is made without a petition
being first filed and the examination, investigation, or test shows that
the terms of the contract are being complied with, then the expense of
the examination, investigation, or test shall be paid by the state upon
vouchers approved by the state examiner from funds available for
contractual service of the state board of accounts. If such a report
shows misfeasance, malfeasance, or nonfeasance in public office or
shows that the terms of the plans and specifications under which a
contract has been awarded are not being complied with, it is unlawful
to make the report public until the report has been certified to the
attorney general.
Formerly: Acts 1923, c.120, s.1. As amended by P.L.3-1986,
SEC.20; P.L.176-2009, SEC.5; P.L.126-2012, SEC.18; P.L.136-2012,
SEC.4; P.L.59-2023, SEC.15.