HB 1267

           Second Regular Session of the 124th General Assembly (2026)
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between statutes enacted by the 2025 Regular Session of the General Assembly.
    HOUSE ENROLLED ACT No. 1267
  AN ACT to amend the Indiana Code concerning state and local
administration.
    Be it enacted by the General Assembly of the State of Indiana:
    SECTION 1. IC 5-11-1-1, AS AMENDED BY P.L.59-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. (a) There is established a state board of
accounts. The state board of accounts is designated as the independent
external auditor of audited entities and is subject to applicable
professional accounting auditing standards.
    (b) The board is accountable to the legislative council and consists
of the state examiner and two (2) deputy examiners, as provided in this
section.
    (c) The principal officer of the board is the state examiner. To hold
the office of state examiner, an individual must:
      (1) be appointed by the governor;
      (2) have the individual's appointment accepted by the legislative
      council in conformity with subsection (f); and
      (3) be a certified public accountant with at least five (5) years of
      accounting experience, including at least three (3) years of single
      audit experience in the public or private sector.
    (d) The governor shall also appoint two (2) deputy examiners. To
hold the office of deputy examiner, an individual must:
      (1) be appointed by the governor; and
      (2) be a certified public accountant. One (1) deputy examiner
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       must be a certified public accountant and the other deputy
       examiner must be either a certified public accountant or an
       attorney licensed in Indiana.
A deputy examiner is subordinate to the state examiner. At least one
(1) of the deputy examiners must have at least three (3) years of
experience with the state board of accounts at the time of appointment.
    (e) Not more than two (2) of the three (3) individuals appointed to
the state board of accounts may be members of the same political party.
The term of a state examiner is four (4) years. Notwithstanding the
expiration of the term of a state examiner, the state examiner may
continue to serve as acting state examiner until a state examiner is
appointed or reappointed. The term of a deputy examiner is
coterminous with the term of the state examiner.
    (f) The governor shall submit to the executive director of the
legislative services agency in an electronic format under IC 5-14-6 the
name of an individual who the governor recommends for appointment
under subsection (c) along with any supporting information that the
governor determines is appropriate. The executive director of the
legislative services agency shall submit the governor's recommendation
along with any submitted supporting information to the members of the
legislative council and place the information on the website maintained
by the general assembly. At a meeting open to the public, the
legislative council may adopt a resolution to accept or reject a
recommendation of the governor. The legislative council may reject a
recommendation with or without cause. If the legislative council fails
to adopt a resolution accepting or rejecting a recommendation within
forty-five (45) days after the recommendation is submitted to the
executive director of the legislative services agency in an electronic
format under IC 5-14-6, the recommendation shall be treated as
accepted by the legislative council.
    (g) IC 4-21.5 applies to an action under this subsection. The state
examiner and the deputy examiners are subject to removal by the
governor for incompetency (including failure to maintain the
individual's status as a certified public accountant) or for misconduct
of the office. If the governor seeks to remove the state examiner under
this subsection, the governor shall notify the state examiner in writing
of the governor's proposed action in conformity with IC 4-21.5-3-4 and
submit a copy of the notice to the executive director of the legislative
services agency in an electronic format under IC 5-14-6. The notice
must state the reasons for the proposed action and indicate that the state
examiner has fifteen (15) days after being given notice to petition for
review of the proposed action. The notice must specify that a petition
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for review of the proposed action must be made in writing and be
submitted to the executive director of the legislative services agency in
accordance with IC 4-21.5-3-7. The notice must also state that the state
examiner may petition the legislative council under IC 4-21.5-3-4 for
a stay of the proposed action pending final resolution of the matter. If
a timely petition is filed with the executive director of the legislative
services agency, the legislative council shall conduct a proceeding
under IC 4-21.5 to review the petition. The determination by the
legislative council is a final order. A state examiner removed from
office under this subsection may petition for judicial review of a final
action of the legislative council under IC 4-21.5-5 in the circuit or a
superior court of Marion County. A deputy examiner removed from
office under this subsection may petition for judicial review regarding
the removal in the circuit or a superior court of Marion County.
    (h) A vacancy in the office of state examiner or deputy examiner
must be filled in the same manner provided under this section for the
appointment of the vacating officer. An individual appointed to fill a
vacancy serves for the remainder of the vacating individual's term.
    SECTION 2. An emergency is declared for this act.
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Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:  Time:
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