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Indiana’s Ethics Commission on Thursday unanimously approved post-employment waivers for four agency heads moving on from state government as Gov.-elect Mike Braun takes over. That includes David Rosenberg, president and CEO of the controversial Indiana Economic Development Corporation.
The waivers allow state employees to take their next gigs despite potential conflicts.
Indiana law mandates a yearlong ban on accepting a job or receiving compensation if the job involves lobbying; if the state employee negotiated or administered a contract with their prospective next employer while having discretionary decision-making power over contract negotiation or administration; or if the state employee made regulatory or licensing decisions that impacted their prospective next employer within the year before their departure.
State code also permanently blocks former staffers from helping their new employers on “particular matters” related to past state work. Contracts, lawsuits and more count.
Braun’s transition team notified the four leaders that they wouldn’t be reappointed and that they had to seek new employment, according to the waiver applications in the commission’s meeting packet.
Braun will be inaugurated Monday.
Down to the wire
It was Rosenberg’s last day of work for the state.
Rosenberg previously withdrew his “premature” request for permission to take a vaguely defined executive role at Indiana University during a November meeting.
Governor’s Office General Counsel and Ethics Officer Joseph Heerens on Thursday acknowledged the commission’s concerns about the “sufficiency of disclosure of the responsibilities and duties” that Rosenberg would have at his new role. An updated ask, filed last week and included in the packet, specified that he’d be the inaugural president and CEO of IU’s Launch Accelerator for Biolifesciences.
Rosenberg’s application specifically requested a waiver of the contract-related cooling-off period. He was involved with early discussions for a single contract with IU that eventually provided a state match for the university’s successful federal microelectronics grant. The filing said he didn’t negotiate or administer the contract that resulted a year later.
Commission Chair Katherine Noel called Rosenberg’s involvement “extremely minimal.” The body voted 4-0 to approve the waiver.
IU announced Rosenberg’s new role in a news release sent within an hour of the decision. He’ll start the new gig today — Friday.
President Pamela Whitten said the university was “thrilled” to have Rosenberg join.
Rosenberg “brings a track records of successful partnerships and major investments into our state. His leadership will help unlock the massive potential of Indiana’s leadership in biosciences,” Whitten continued. He’ll report directly to her.
“IU LAB represents an enormous opportunity to distinguish Indiana and the greater Indianapolis region as an international leader for biosciences research and innovation,” Rosenberg said in the release. “I’m excited to join the IU team and strengthen partnerships with industry and the state as we work collaboratively toward this audacious goal.”
Other approvals
The commission also unanimously approved waivers for three other agency leaders: Indiana Department of Environmental Management Commissioner Brian Rockensuess, Indiana Department of Transportation Commissioner Michael Smith and Family and Social Services Administration Secretary Dr. Daniel Rusyniak.
Rockensuess sought a waiver of the contract-related cooling-off period to accept a position as president of Keramida, an Indianapolis-based sustainability and environmental health and safety consulting firm. The company has contracts with IDEM, according to filing, like for maintaining the grounds and facilities at IDEM cleanup sites,
Rockensuess’ filing acknowledged that he had the power to interfere in contracts as agency head and he did occasionally sign agreements, but argued that lower-level employees handle contract negotiation and administration.
Smith also applied for a waiver of the contract-related cooling-off period to accept a national-level consulting role with Indianapolis-based engineering powerhouse HNTB. The company has “many” active contracts with INDOT, including one involving road funding advice.
“Smith directly handled conversations about road funding on behalf of INDOT, aided by HNTB’s advice,” the application read.
But, it argued, that Smith’s new gig wouldn’t involve substantial contact with INDOT because of its national scope. And, another HNTB executive would screen him from any contact with or work involving the agency.
Finally, Rusyniak hopes to join Eskenazi Health — the public hospital division of the Health and Hospital Corp. of Marion County — as its chief medical officer. He worked for the system before becoming a state employee and has continued clinical work there while being FSSA’s chief medical officer and now secretary.
He applied for a waiver of the contract-related cooling-off period, the regulatory or licensing-related cooling-off period and the particular matters ban.
FSSA has four contracts with Eskenazi. The application said Rusyniak didn’t negotiate or administer any contracts with the system but still asked to waive the particular matters ban because he oversaw the divisions that entered into those contracts.
And, Eskenazi is among 80,000 Medicaid providers registered with FSSA.
“If the Ethics Commission were to consider these agreements to be ‘contracts’ under the Code of Ethics, and if it also believes Dr. Rusyniak’s general oversight of the regulatory program … constitutes a particular matter, then we respectfully request a waiver,” the application read.
It went on to argue that Rusyniak interacted with providers indirectly, through groups like the Indiana Hospital Association, and that any changes he signed off on applied uniformly to all providers. It said he didn’t make any regulatory or licensing decisions directly regarding Eskenazi and noted that Eskenazi’s licensing is handled by a different agency. That box was checked out of an “abundance of caution.”
“FSSA is the largest state agency, and it has a complexity that is different from” the other waivers presented, Heerens told the commission.
Commissioners acknowledged the agency’s broad reach.
“If we didn’t grant this waiver, because of the wide net FSSA casts, finding employment in Indiana at any medical institution would be difficult,” Commissioner Robert Duncan noted.
The commission also O.K’ed a lobby-related waiver for John Cochran, who left the IEDC in November for a new job at The Corydon Group. Cochran has lobbied local units of government and the Indiana General Assembly, but wanted permission to engage in executive branch lobbying.
All who were granted waivers filed conflict-of-interest disclosures with preventative screens.
The Indiana Capital Chronicle is an independent, not-for-profit news organization that covers state government, policy and elections.
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