Introduced Version
HOUSE BILL No. 1077
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-13-16.5-2; IC 21-18-16-8.
Synopsis: State educational institutions. Requires the governor's
supplier diversity commission, the commission for higher education,
and the state budget committee to review each state educational
institution's annual report regarding certain supplier diversity
requirements. Provides that if a state educational institution's annual
report is not in compliance with certain supplier diversity requirements,
the commission for higher education and the state budget committee
shall reduce the amount provided to the state educational institution
under the outcomes based funding formula by a certain percentage.
Effective: July 1, 2024.
Bartlett, King
January 8, 2024, read first time and referred to Committee on Education.
2024 IN 1077—LS 6229/DI 143 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1077
A BILL FOR AN ACT to amend the Indiana Code concerning
higher education.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-13-16.5-2, AS AMENDED BY P.L.15-2020,
2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 2. (a) There is established a governor's
4 commission on supplier diversity. The commission shall consist of the
5 following members:
6 (1) A governor's designee, who shall serve as chairman of the
7 commission.
8 (2) The commissioner of the Indiana department of transportation,
9 or the economic opportunity director of the Indiana department of
10 transportation if the commissioner of the Indiana department of
11 transportation so designates.
12 (3) The chairperson of the board of the Indiana economic
13 development corporation or the chairperson's designee.
14 (4) The commissioner.
15 (5) Nine (9) individuals with demonstrated capabilities in
16 business and industry, especially minority business enterprises,
17 women's business enterprises, and veteran owned small
2024 IN 1077—LS 6229/DI 143 2
1 businesses, appointed by the governor from the following
2 geographical areas of the state:
3 (A) Three (3) from the northern one-third (1/3) of the state.
4 (B) Three (3) from the central one-third (1/3) of the state.
5 (C) Three (3) from the southern one-third (1/3) of the state.
6 (6) Two (2) members of the house of representatives, no more
7 than one (1) from the same political party, appointed by the
8 speaker of the house of representatives to serve in a nonvoting
9 advisory capacity.
10 (7) Two (2) members of the senate, no more than one (1) from the
11 same political party, appointed by the president pro tempore of
12 the senate to serve in a nonvoting advisory capacity.
13 (8) The deputy commissioner, who shall serve as a nonvoting
14 member.
15 Not more than six (6) of the ten (10) members appointed or designated
16 by the governor may be of the same political party. Appointed members
17 of the commission shall serve four (4) year terms. A vacancy occurs if
18 a legislative member leaves office for any reason. Any vacancy on the
19 commission shall be filled in the same manner as the original
20 appointment.
21 (b) Each member of the commission who is not a state employee is
22 entitled to the following:
23 (1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
24 (2) Reimbursement for traveling expenses and other expenses
25 actually incurred in connection with the member's duties as
26 provided under IC 4-13-1-4 and in the state travel policies and
27 procedures established by the Indiana department of
28 administration and approved by the budget agency.
29 (c) Each legislative member of the commission is entitled to receive
30 the same per diem, mileage, and travel allowances established by the
31 legislative council and paid to members of the general assembly
32 serving on interim study committees. The allowances specified in this
33 subsection shall be paid by the legislative services agency from the
34 amounts appropriated for that purpose.
35 (d) A member of the commission who is a state employee but who
36 is not a member of the general assembly is not entitled to any of the
37 following:
38 (1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
39 (2) Reimbursement for traveling expenses as provided under
40 IC 4-13-1-4.
41 (3) Other expenses actually incurred in connection with the
42 member's duties.
2024 IN 1077—LS 6229/DI 143 3
1 (e) The commission shall meet at least four (4) times each year and
2 at other times as the chairman considers necessary.
3 (f) The duties of the commission shall include but not be limited to
4 the following:
5 (1) Identify minority business enterprises, women's business
6 enterprises, and veteran owned small businesses in the state.
7 (2) Assess the needs of minority business enterprises, women's
8 business enterprises, and veteran owned small businesses.
9 (3) Initiate aggressive programs to assist minority business
10 enterprises, women's business enterprises, and veteran owned
11 small businesses in obtaining state contracts.
12 (4) Give special publicity to procurement, bidding, and qualifying
13 procedures.
14 (5) Include minority business enterprises, women's business
15 enterprises, and veteran owned small businesses on solicitation
16 mailing lists.
17 (6) Evaluate the competitive differences between qualified
18 minority or women's nonprofit corporations and other than
19 qualified minority or women's nonprofit corporations and veteran
20 owned small businesses that offer similar services and make
21 recommendation to the department on policy changes necessary
22 to ensure fair competition among minority business enterprises,
23 women's business enterprises, and veteran owned small
24 businesses.
25 (7) Define the duties, goals, and objectives of the deputy
26 commissioner of the department as created under this chapter to
27 assure compliance by all state agencies, separate bodies corporate
28 and politic, and state educational institutions with state and
29 federal legislation and policy concerning the awarding of
30 contracts (including, notwithstanding section 1(d) of this chapter
31 or any other law, contracts of state educational institutions) to
32 minority business enterprises, women's business enterprises, and
33 veteran owned small businesses.
34 (8) Establish annual goals:
35 (A) for the use of minority and women's business enterprises;
36 and
37 (B) derived from a statistical analysis of utilization study of
38 state contracts (including, notwithstanding section 1(d) of this
39 chapter or any other law, contracts of state educational
40 institutions) that are required to be updated every five (5)
41 years.
42 (9) Prepare a review of the commission and the various affected
2024 IN 1077—LS 6229/DI 143 4
1 departments of government to be submitted to the governor and
2 the legislative council on March 1 and October 1 of each year,
3 evaluating progress made in the areas defined in this subsection.
4 (10) Ensure that the statistical analysis required under this
5 section:
6 (A) is based on goals for participation of minority business
7 enterprises established in Richmond v. Croson, 488 U.S. 469
8 (1989);
9 (B) includes information on both contracts and subcontracts
10 (including, notwithstanding section 1(d) of this chapter or any
11 other law, contracts and subcontracts of state educational
12 institutions); and
13 (C) uses data on the combined capacity of minority business
14 enterprises, women's business enterprises, and veteran owned
15 small businesses in Indiana and not just regional data.
16 (11) Establish annual goals for the use of minority business
17 enterprises, women's business enterprises, and veteran owned
18 small businesses for any contract that:
19 (A) will be paid for in whole or in part with state grant funds;
20 and
21 (B) involves the use of real property of a unit (as defined in
22 IC 4-4-32.2-9).
23 (12) Ensure compliance with the establishment and evaluation of
24 the annual goal for veteran owned small businesses established in
25 section 3.5 of this chapter.
26 (13) Review each state educational institution's annual report
27 required under section 4.5 of this chapter in conjunction with
28 the commission for higher education established by
29 IC 21-18-2-1 and the state budget committee, in accordance
30 with IC 21-18-16-9.
31 (g) The department shall direct contractors to demonstrate a good
32 faith effort to meet the annual participation goals established under
33 subsection (f)(11). The good faith effort shall be demonstrated by
34 contractors using the repository of certified firms created under section
35 3 of this chapter or a similar repository maintained by a unit (as defined
36 in IC 4-4-32.2-9).
37 (h) The department shall adopt rules of ethics under IC 4-22-2 for
38 commission members other than commission members appointed
39 under subsection (a)(6) or (a)(7).
40 (i) The department shall furnish administrative support and staff as
41 is necessary for the effective operation of the commission.
42 (j) The commission shall advise the department on developing a
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1 statement, to be included in all applications for and agreements
2 governing grants made with state funds, stating the importance of the
3 use of minority business enterprises, women's business enterprises, and
4 veteran owned small businesses in fulfilling the purposes of the grant.
5 SECTION 2. IC 21-18-16-8 IS ADDED TO THE INDIANA CODE
6 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
7 1, 2024]: Sec. 8. (a) Not later than December 31, after the close of
8 each state fiscal year, the commission, in conjunction with the
9 governor's commission on supplier diversity established by
10 IC 4-13-16.5-2 and the state budget committee, shall review each
11 state educational institution's annual report required under
12 IC 4-13-16.5-4.5 regarding supplier diversity goals.
13 (b) If a state educational institution's annual report is not in
14 compliance with the requirements of IC 4-13-16.5-2, the
15 commission, in conjunction with the state budget committee, shall:
16 (1) determine the total percentage by which the state
17 educational institution fell short of the requirements of
18 IC 4-13-16.5-2; and
19 (2) reduce the state educational institution's distribution
20 under this chapter by the amount determined under
21 subdivision (1) for the following state fiscal year.
2024 IN 1077—LS 6229/DI 143