Conflicts of Interests: Contracts

Summary of the Rule

Don’t make decisions at work which might financially benefit you.

Examples of the Rule

• You work for FSSA and also co-own a maintenance company which is operated on a day-to-day basis by your brother. Observing all the appropriate notice and bidding formalities, the Department of Administration selects your company to complete work on the South Government Building. So long as you disclose your financial interest in the contract to the Ethics Commission and can perform on the contract without compromising your official state duties, your company may accept the contract.


• You are in charge of the marketing campaign for the Hoosier Lottery’s new scratch-off game and own a small business that specializes in manufacturing buttons and t-shirts for these types of activities. Your business may not contract with Lottery to provide buttons and t-shirts for the Lottery’s upcoming promotional events.


• You are an employee with the Office of Management and Budget and would like to apply for a grant being offered by the Department of Agriculture. Since the grant is considered to be a contract, you would still be subject to the requirements set forth in the Conflict of interests rule.


• You are an employee of the Department of Administration. You may not also contract with the DOA to provide cleaning services to agency buildings.


• You are an employee of IDEM. You may not contract with INDOT to provide environmental services for a road project.

Past Advisory Opinions on the Rule

• 07-I-5, July 12, 2007
• 07-I-4, April 12, 2007
• 06-I-3, January 30, 2006
• 06-I-13, May 11, 2006
• 00-I-2, April 13, 2000

The Rule: 42 IAC 1-5-7 Conflicts of Interest; Contracts

Contracting restrictions are set forth in IC 4-2-6-10.5.

1. Subject to subsection (b), a state officer, an employee, or a special state appointee may not knowingly have a financial interest in a contract made by an agency.
2. The prohibition in subsection (a) does not apply to:
   1. a state officer, an employee, or a special state appointee who does not participate in or have official responsibility for any of the activities of the contracting agency, if:
      1. the contract is made after public notice or, where applicable, through competitive bidding;
      2. the state officer, employee, or special state appointee files with the commission a statement making full disclosure of all related financial interests in the contract;
      3. the contract can be performed without compromising the performance of the official duties and responsibilities of the state officer, employee, or special state appointee; and
      4. in the case of a contract for professional services, the appointing authority of the contracting agency makes and files a written certification with the commission that no other state officer, employee, or special state appointee of that agency is available to perform those services as part of the regular duties of the state officer, employee, or special state appointee; or
   2. a state officer, an employee, or a special state appointee who, acting in good faith, learns of an actual or prospective violation of the prohibition in subsection (a), if, not later than thirty (30) days after learning of the actual or prospective violation, the state officer, employee, or special state appointee:
      1. makes a full written disclosure of any financial interests to the contracting agency and the commission; and
      2. terminates or disposes of the financial interest.