IC 5-11-6
    Chapter 6. Additional Powers of State Examiner and AttorneyGeneral

IC 5-11-6-1
Taxpayer petition; examination of public contracts; prosecutionsresulting therefrom
    Sec. 1. (a) The state examiner, personally or through the deputyexaminers, field examiners, or private examiners, upon the petitionof twenty-five (25) interested taxpayers showing that effective localrelief has not and cannot be obtained after due effort, shall make theinquiries, tests, examinations, and investigations that may benecessary to determine whether:
        (1) any public contract has been regularly and lawfully executedand performed; or
        (2) any public work, building, or structure has been or is beingperformed, built, or constructed in accordance with the termsand provisions of the contract, and in compliance with the plansand specifications, if any.
Upon a written petition of twenty-five (25) taxpayers the stateexaminer may also require all plans, specifications, and estimates tobe submitted to the state examiner for corrections and approvalbefore a contract is awarded.
    (b) The state examiner, deputy examiner, and any field examiner,when engaged in making an inquiry, test, examination, orinvestigation under subsection (a), is entitled to examine and inspectany public records, documents, data, contracts, plans, andspecifications contained or found in any public office or other placepertaining or relating to the public contract or public work, building,or structure. In addition, subpoenas may be issued to witnesses toappear before the examiner in person or to produce books and papersfor inspection and examination. The state examiner, deputy, field,and private examiner may administer oaths and examine witnessesunder oath either orally or by interrogatories on all matters underexamination and investigation. Under order of the state examiner, theexamination may be transcribed, with the reasonable expense paid bythe municipality in the same manner as the compensation of the fieldexaminer is paid.
    (c) The state examiner, the deputy examiner, and a field examinermay enforce attendance and answers to questions and interrogatories,as provided by law, with respect to examinations and investigationsmade by the state examiner, deputy examiner, field examiner, orprivate examiner of public offices.
    (d) The state examiner, deputy examiner, any field examiner, andany private examiner, when making an examination or investigationunder subsection (a), shall examine, inspect, and test the publicworks, buildings, or structures in the manner that the examiner seesfit to determine whether it is being performed, built, or constructedaccording 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 orthe execution of any public contract or in the performance ofany of the terms and conditions of any public contract; or
        (2) any failure to comply with the terms or conditions of anypublic contract in the construction of any public work, building,or structure or to perform, build, or construct it according to theplans and specifications, if any, provided in the contract;
that causes loss, injury, waste, or damage to the state, themunicipality, taxing or assessment district, other public entity, or toits 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 inquadruplicate 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 ofthe report promptly with the attorney general.
    (g) The attorney general shall diligently institute and prosecutecivil proceedings against any or all officers, individuals, and personsin the form and manner that the attorney general determines willsecure a proper recovery to the state, municipality, taxing orassessment district, or other public entity injured, defrauded, ordamaged by the matters in the report. These prosecutions may bemade by the attorney general and the recovery may be had, eitherupon public official bonds, contractors' bonds, surety or other bonds,or upon individual liability, either upon contract or in tort, as theattorney general determines is wise. No action or recovery in anyform or manner, or against any party or parties, precludes further oradditional action or recovery in any other form or manner or againstanother party, either concurrently with or later found necessary, tosecure complete recovery and restitution with respect to all mattersexhibited, set out, or described in the report. The suits may bebrought in the name of the state on the relation of the attorneygeneral for the benefit of the state, or the municipality, taxing orassessment district, or other public entity that may be proper. Theactions brought against any defendants may be joined, as to parties,form, and causes of action, in the manner that the attorney generaldecides.
    (h) Any report described in this section or a copy duly certified bythe state examiner shall be taken and received in any and all courtsof this state as prima facie evidence of the facts stated and containedin the reports.
    (i) If an examination, investigation, or test is made without apetition being first filed and the examination, investigation, or testshows that the terms of the contract are being complied with, then theexpense of the examination, investigation, or test shall be paid by thestate upon vouchers approved by the state examiner from fundsavailable for contractual service of the state board of accounts. Ifsuch a report shows misfeasance, malfeasance, or nonfeasance inpublic office or shows that the terms of the plans and specifications

under which a contract has been awarded are not being compliedwith, it is unlawful to make the report public until the report has beencertified to the attorney general.
    (j) If, during an examination under this article, a deputy examiner,field examiner, or private examiner acting as an agent of the stateexaminer determines that all of the following conditions are satisfied,the examiner shall report the determination to the state examiner:
        (1) A substantial amount of public funds has beenmisappropriated or diverted.
        (2) The deputy examiner, field examiner, or private examineracting as an agent of the state examiner has a reasonable beliefthat the malfeasance or misfeasance that resulted in themisappropriation or diversion of public funds was committed bythe officer or an employee of the office.
    (k) After receiving a preliminary report under subsection (j), thestate examiner may provide a copy of the report to the attorneygeneral. The attorney general may institute and prosecute civilproceedings against the delinquent officer or employee, or upon theofficer's or employee's official bond, or both, and against any otherproper person that will secure to the state or to the propermunicipality the recovery of any funds misappropriated, diverted, orunaccounted for.
    (l) In an action under subsection (k), the attorney general mayattach the defendant's property under IC 34-25-2.
    (m) A preliminary report under subsection (j) is confidential untilthe final report under subsection (e) is issued, unless the attorneygeneral institutes an action under subsection (k) on the basis of thepreliminary report.
(Formerly: Acts 1923, c.120, s.1.) As amended by P.L.3-1986,SEC.20; P.L.176-2009, SEC.5.

IC 5-11-6-2
Reports of state examiner
    Sec. 2. All the provisions of section 1 of this chapter relating tothe powers and duties of the attorney general shall apply to allreports of the state examiner, as provided in section 1 of this chapter,whether such inquiries, tests, examination, or investigation and thereports made thereon shall have been made before or after March 7,1923.
(Formerly: Acts 1923, c.120, s.2.) As amended by P.L.25-1986,SEC.40.

IC 5-11-6-3
Public wrongdoing; institution of civil proceeding
    Sec. 3. If any examination or investigation made by the stateexaminer personally or through a deputy examiner, field examiner,or private examiner under of this chapter or of any other statutediscloses:
        (1) malfeasance, misfeasance, or nonfeasance in office, or ofany officer or employee;        (2) that any public money has been:
            (A) unlawfully expended, either by having been expendedfor a purpose not authorized by law in an amount exceedingthat authorized by law, or by having been paid to a personnot lawfully entitled to receive it; or
            (B) obtained by fraud or in any unlawful manner; or
        (3) that any money has been wrongfully withheld from thepublic treasury;
a duly verified copy of the report shall be submitted by the stateexaminer to the attorney general, who shall institute and prosecutecivil proceedings as provided in section 1 of this chapter.
(Formerly: Acts 1923, c.120, s.3.) As amended by P.L.3-1986,SEC.21.

IC 5-11-6-4
Grand jury; certified copy of reports disclosing crimes or offenses;expenses of field examination
    Sec. 4. (a) If a report is filed with the attorney general thatdiscloses any offense, the state examiner shall present a certifiedcopy of the report and competent testimony supporting the chargesmade in the report to the grand jury of the county in which theoffense is alleged to have been committed at its first convenientsession. The attorney general shall direct, supervise, and assist in theprosecution of the offense before the grand jury and in the courts.
    (b) The per diem and actual expenses of all field or privateexaminers required by the state examiner, the attorney general, orany prosecuting attorney to attend sessions of grand juries or trialsin connection with the prosecution shall be paid by the state uponvouchers approved by the state examiner from funds available foroffice and traveling expenses for the state board of accounts.
(Formerly: Acts 1923, c.120, s.4.) As amended by Acts 1978, P.L.2,SEC.512; P.L.3-1986, SEC.22.

IC 5-11-6-5
Effect of chapter; municipality defined
    Sec. 5. (a) The provisions of this chapter shall not be construed asrepealing any laws in force on March 7, 1923, but shall be construedonly as conferring additional duties and powers upon the stateexaminer, deputy examiners, field examiners, and the attorneygeneral of the state and providing additional remedies as to thematters set forth in those laws, and all the remedies provided in thischapter shall be additional and concurrent and not exclusive.
    (b) The term "municipality", as used in this chapter, shall beconstrued to extend to and include any county, township, city, town,school town, school township, school city, or board of parkcommissioners in this state.
(Formerly: Acts 1923, c.120, s.5.) As amended by P.L.25-1986,SEC.41.