IN HB1394

Employees of a political subdivision who assume elected office after December 31, 2011 are automatically considered to have resigned from their employment if that office has authority to propose or approve the budget or employee compensation for their employing agency or department

Political subdivisions are prohibited from contracting with bond service providers (bond counsel, financial advisers, underwriters, trustees) if an owner (5% or greater interest), officer, agent, or employee of that provider serves on the political subdivision's fiscal body, legislative body, executive, or as an elected officer

Existing provisions allowing political subdivision employees, city employees, safety board members, and police/fire department members to run for and hold elected office are made subject to the new automatic resignation requirements

The bill applies specifically to employees taking office after December 31, 2011, with an effective date of July 1, 2011