Associated Press 

INDIANAPOLIS – The director of Indiana’s child services agency has resigned following reports that suggested he violated his department’s ethical rules when he intervened in a case involving his grandchildren.

Gov. Mitch Daniels announced Monday he had accepted the resignation of James Payne as director of the Department of Child Services.

Daniels defended Payne’s handling of the department, and said the state’s work to protect children from abuse and neglect has improved under Payne’s leadership.

Daniels said DCS Chief of Staff John Ryan will serve as interim director of the department, effective immediately.

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