LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6591 NOTE PREPARED: Dec 21, 2023
BILL NUMBER: HB 1109 BILL AMENDED:
SUBJECT: Governance of Public-Private Agreements.
FIRST AUTHOR: Rep. Heine BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill requires a governmental body to entertain more than one bidder before
entering into a public-private agreement for a qualifying project. It provides that for both performance and
payment bonds, the amount must be an amount not less than 100% of the cost to design and construct the
qualifying project. The bill requires the operator to perform at least 30% of the work on the qualifying
project. It requires the governmental body and the operator to provide full disclosure in the public-private
agreement and to the public of any imputed interest rate regarding the qualifying project. It also requires the
governmental body to report to the Department of Local Government Finance (DLGF) the amount and
duration of any availability payment related to the qualifying project. The bill requires the governmental
body to hold a public comment hearing regarding the necessity of the qualifying project.
Effective Date: July 1, 2024.
Explanation of State Expenditures: DLGF: The bill’s requirements should have no significant impact on
the administrative workload of the Department of Local Government Finance.
Governmental Bodies: Any state agency that wishes to enter into a public-private agreement will be required
to entertain more than one bidder before beginning the project. Agencies will also be required to give no less
than 100% of the project’s cost through a performance or payment bond. Agencies must also provide full
disclosure of the project including anything including the imputed interest rate. The bill requires the agencies
to develop a report for the DLGF that contains the amount and duration of any availability payment related
to the project while also ensuring they will hold a public comment hearing regarding necessity of the
qualifying project. The bill’s requirements are within agencies routine administrative functions and should
be able to be implemented with no additional appropriations, assuming near customary agency staffing and
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Explanation of State Revenues:
Explanation of Local Expenditures: Governmental Bodies: Any local unit that wishes to enter into a
public-private agreement will be required to entertain more than one bidder before beginning the project.
Local units will also be required to give no less than 100% of the project’s cost through a performance or
payment bond. Local units must also provide full disclosure of details of the project including the imputed
interest rate. The bill requires the local units to develop a report for the DLGF that contains the amount and
duration of any availability payment related to the project while also ensuring they will hold a public
comment hearing regarding necessity of the qualifying project.
Operators: The bill requires operators to perform at least 30% of work on the qualifying project.
Local units could experience an increase in workload and expenditures to accommodate the bill’s
requirements.
Explanation of Local Revenues:
State Agencies Affected: Department of Local Government Finance; State agencies that may enter into a
public-private agreement.
Local Agencies Affected: Local units that may enter into a public-private agreement.
Information Sources:
Fiscal Analyst: Jasmine Noel, 317-234-1360.
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