Political activity of employees and contractors. Provides that notwithstanding any ordinance or resolution of a political subdivision, an employee of the political subdivision may serve as the chairman of a county political party while continuing to serve as an employee of the unit free from any discipline or other sanctions. Provides that a unit may not adopt an ordinance or resolution that: (1) provides that an individual who does business with the unit may not hold an office or other position in a political party; or (2) prohibits an individual who holds an office or other position in a political party from doing business with the city. Provides that such an ordinance or resolution is void. Provides that except when on duty or acting in an official capacity and except where otherwise provided by Indiana or federal law, an employee of a political subdivision may not be discouraged from engaging in political activity or denied the right to choose to refrain from engaging in political activity provided such activities do not impede or impair the efficient operation of the employee's employing agency.