*EH1158.1*
February 23, 2024
ENGROSSED
HOUSE BILL No. 1158
_____
DIGEST OF HB 1158 (Updated February 22, 2024 11:54 am - DI 87)
Citations Affected: IC 36-2.
Synopsis: County contracts. Provides that for counties other than
Marion County, contracts entered into by the county (including
contracts executed by county elected officers) must meet certain
requirements. Requires certain contracts of county elected officers to
be reviewed by the county attorney and county executive. Provides that
a contract of a county elected officer may be disapproved in the review
by the county attorney, if the contract does not comply with state law
or the public purchasing or bidding laws. Allows the county executive
to void a contract if a county officer fails to comply with the review
process.
Effective: July 1, 2024.
Lehman, May, Steuerwald,
Johnson B, Zimmerman
(SENATE SPONSORS — HOLDMAN, GARTEN)
January 8, 2024, read first time and referred to Committee on Local Government.
January 16, 2024, amended, reported — Do Pass.
January 18, 2024, read second time, amended, ordered engrossed.
January 19, 2024, engrossed.
January 22, 2024, read third time, passed. Yeas 94, nays 0.
SENATE ACTION
January 25, 2024, read first time and referred to Committee on Local Government.
February 22, 2024, amended, reported favorably — Do Pass.
EH 1158—LS 6424/DI 137 February 23, 2024
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.
ENGROSSED
HOUSE BILL No. 1158
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 36-2-2.8 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]:
4 Chapter 2.8. County Contracts; Requirements
5 Sec. 1. This chapter only applies to a county not having a
6 consolidated city.
7 Sec. 2. (a) As used in this chapter, "contract" means a contract
8 for the purchase of:
9 (1) real property;
10 (2) tangible or intangible personal property; or
11 (3) services (as defined in IC 5-22-2-30).
12 (b) The term does not include a contract concerning the issuance
13 of:
14 (1) a bond to finance the construction of a public facility; or
15 (2) a bond or other type of security for the payment of a lease
16 obligation.
17 Sec. 3. As used in this chapter, "county officer" has the meaning
EH 1158—LS 6424/DI 137 2
1 set forth in IC 36-2-2.9-3.
2 Sec. 4. A contract entered into by a county, including a contract
3 executed by a county officer, must meet the following
4 requirements:
5 (1) The contract must be executed in the name of the county.
6 (2) Any property purchases for public use shall be:
7 (A) titled to; or
8 (B) documented as owned by;
9 the county.
10 Sec. 5. The county executive may, by ordinance, require
11 standard contractual language to be used in all contracts entered
12 into by the county, including contracts executed by a county
13 officer. The ordinance may include:
14 (1) provisions for indemnification;
15 (2) dispute resolution provisions;
16 (3) venue requirements;
17 (4) termination provisions; and
18 (5) notification provisions.
19 SECTION 2. IC 36-2-2.9 IS ADDED TO THE INDIANA CODE
20 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2024]:
22 Chapter 2.9. Review of County Contracts
23 Sec. 1. This chapter only applies to a county not having a
24 consolidated city.
25 Sec. 2. The definitions in IC 36-2-2.8 apply to this chapter.
26 Sec. 3. As used in this chapter, "county officer" means the
27 following:
28 (1) Assessor.
29 (2) Auditor.
30 (3) Coroner.
31 (4) Recorder.
32 (5) Sheriff.
33 (6) Surveyor.
34 (7) Treasurer.
35 (8) Clerk of the circuit court.
36 (9) County fiscal body.
37 Sec. 4. (a) If a county officer has a proposed contract:
38 (1) that the county officer believes is necessary for the county
39 officer to carry out a constitutional or statutory duty of office;
40 and
41 (2) for which funds have been appropriated by the county
42 fiscal body to pay for the contract;
EH 1158—LS 6424/DI 137 3
1 the county officer must submit the contract for review under this
2 chapter.
3 (b) The county executive may void a contract that a county
4 officer executes without first complying with this chapter.
5 Sec. 5. To initiate a contract review, the county officer must
6 submit to the county auditor the following:
7 (1) A request for review.
8 (2) A copy of the proposed contract. The contract must
9 comply with IC 36-2-2.8, including using the standard terms
10 required by ordinance under IC 36-2-2.8-5.
11 The county auditor shall date stamp the request and immediately
12 forward copies of the request and contract to the president of the
13 county executive and county attorney.
14 Sec. 6. Not later than twenty (20) days after the request is filed
15 with the county auditor:
16 (1) the county executive and county attorney shall review the
17 proposed contract; and
18 (2) the county executive shall notify the county officer of the
19 results of the review.
20 Sec. 7. (a) If the county attorney determines that the contract
21 does not comply with:
22 (1) state law; or
23 (2) any applicable public purchasing or bidding laws;
24 the contract is disapproved and may not be executed by the county
25 officer.
26 (b) The county attorney shall notify the county executive of the
27 results of the review.
28 Sec. 8. If the contract:
29 (1) is not disapproved under section 7 of this chapter; and
30 (2) the county executive finds the contract:
31 (A) complies with IC 36-2-2.8; and
32 (B) is otherwise acceptable;
33 the county executive may approve and authorize execution of the
34 contract by the county officer or the county executive.
35 Sec. 9. (a) If the county executive finds the contract:
36 (1) does not comply with IC 36-2-2.8; or
37 (2) is otherwise not acceptable for reasons other than those
38 determined under section 7 of this chapter;
39 the county executive must provide the county officer with a written
40 statement described in subsection (b).
41 (b) The county executive must provide a written statement as
42 part of the notification of the review results under section 11 of this
EH 1158—LS 6424/DI 137 4
1 chapter that:
2 (1) explains why the contract is not acceptable; and
3 (2) provides recommendations, if any, for making the contract
4 acceptable to the county executive.
5 Sec. 10. The county executive has the responsibility of notifying
6 the county officer of the results of the review conducted by the
7 county attorney and the county executive.
8 Sec. 11. If:
9 (1) the review; and
10 (2) the notification of the review results, including the written
11 statement under section 9(b) of this chapter, if applicable;
12 are not made within the time required under section 6 of this
13 chapter, the contract shall be considered acceptable and the county
14 officer may execute the contract.
15 Sec. 12. (a) This section only applies to a contract that:
16 (1) the county attorney does not disapprove under section 7 of
17 this chapter; and
18 (2) is found to be unacceptable by the county executive under
19 section 9 of this chapter.
20 (b) The county officer may do the following:
21 (1) Revise the contract and file a new request for review
22 under this chapter.
23 (2) Execute the contract, if the county officer determines the
24 contract complies with IC 36-2-2.8.
25 Sec. 13. (a) A county officer must submit the contract to the
26 county auditor not more than ten (10) days after the contract is
27 executed.
28 (b) A contract that is executed by a county officer:
29 (1) under section 12(b)(2); and
30 (2) submitted to the county auditor more than ten (10) days
31 after execution;
32 is voidable by the county executive.
33 Sec. 14. The county auditor shall upload a contract submitted
34 under section 13 of this chapter to the Indiana transparency
35 website under IC 5-14-3.8-3.
EH 1158—LS 6424/DI 137 5
COMMITTEE REPORT
Mr. Speaker: Your Committee on Local Government, to which was
referred House Bill 1158, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 1, line 3, delete "A county executive may pass an ordinance"
and insert:
"This section does not apply to a county containing a
consolidated city.
(b) The following applies to all contracts entered into by a
county unit:
(1) The contract shall be undertaken in the name of the
county.
(2) Any real property, personal property, goods, or services
purchased by the county or a county official for public use
shall be titled to, or otherwise documented as owned by, the
county unit.
(3) The county executive may, by ordinance, require standard
contractual language to be used in all contracts of the county
unit that may include:
(A) provisions for indemnification;
(B) dispute resolution provisions;
(C) venue requirements;
(D) termination provisions; and
(E) notification provisions.
SECTION 2. IC 36-2-13-21 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 21. (a) This section does not apply to a county
containing a consolidated city.
(b) This section applies to a contract for the purchase of goods
and services by the county or on behalf of a county official for
official use with appropriated funds.
(c) Except as provided in subsection (e), the county executive is
the body charged with executing contracts on behalf of the county.
(d) Subsection (e) may be utilized by an elected officeholder
subject to the following conditions:
(1) The proposed contract meets the requirements in section
20 of this chapter.
(2) The proposed contract is for goods and services that are
necessary for an elected officeholder to carry out a
constitutional or statutory duty for the elected officeholder's
office.
EH 1158—LS 6424/DI 137 6
(3) The funds used have been appropriated by the county
fiscal body, if appropriation is required under law.
(e) When an elected officeholder determines that it may be
necessary to execute a contract that meets the requirements in
subsection (d), the following review process applies:
(1) The elected officeholder must file an official request for
approval of the proposed contract with the county auditor
with notice to the president of the county executive.
(2) The county executive shall have at least fifteen (15) days
from the date the request is filed to review and approve the
proposed contract. As part of the review, the proposed
contract must be reviewed by the county attorney to
determine:
(A) the county's potential exposure to liability under the
contract; and
(B) whether the contract complies with state law.
(3) If the county executive finds that:
(A) the proposed contract is acceptable, the county
executive may approve the contract and authorize it for
execution by either the county executive or the elected
officeholder; or
(B) the proposed contract is not acceptable, the county
executive may refuse to approve the contract. However,
the county executive must provide a written statement to
the elected officeholder within five (5) days following the
public meeting in which it was considered explaining why
the contract is not acceptable and provide
recommendations that would make the contract
acceptable, if any.
(4) Should a contract be refused for approval by the county
executive under subdivision (3)(B), the elected officeholder
may:
(A) offer a revised contract to the county executive by
filing a new request for review under subdivision (1); or
(B) execute the contract if the officeholder determines the
contract includes the required terms stated in an ordinance
adopted under section 20(a)(3) of this chapter, if an
ordinance has been adopted.
(5) A contract executed under subdivision (4)(B) shall be
submitted to the county auditor not later than ten (10) days
after execution. Any contract not submitted to the county
auditor within ten (10) days is voidable by the county
EH 1158—LS 6424/DI 137 7
executive.
(6) The county auditor shall upload a contract submitted
under subdivision (5) to the Indiana transparency website
under IC 5-14-3.8-3.".
Page 1, delete lines 4 through 17.
Delete page 2.
and when so amended that said bill do pass.
(Reference is to HB 1158 as introduced.)
MAY
Committee Vote: yeas 11, nays 0.
_____
HOUSE MOTION
Mr. Speaker: I move that House Bill 1158 be amended to read as
follows:
Page 1, line 3, delete "a county" and insert "the following:".
Page 1, delete line 4, begin a new line block indented and insert:
"(1) A county containing a consolidated city.
(2) A building corporation of a county that issues bonds for
the purpose of constructing public facilities.
(3) A bond or other type of security for the payment of a lease
obligation.".
Page 2, line 6, delete "a county" and insert "the following:".
Page 2, delete line 7, begin a new line block indented and insert:
"(1) A county containing a consolidated city.
(2) A building corporation of a county that issues bonds for
the purpose of constructing public facilities.
(3) A bond or other type of security for the payment of a lease
obligation.".
(Reference is to HB 1158 Digest Correction as printed January 16,
2024.)
MELTZER
EH 1158—LS 6424/DI 137 8
HOUSE MOTION
Mr. Speaker: I move that House Bill 1158 be amended to read as
follows:
Page 2, line 29, delete "at least fifteen (15)" and insert "twenty
(20)".
Page 2, line 30, delete "approve the" and insert "respond as to
whether the proposed contract is approved or disapproved.".
Page 2, line 31, delete "proposed contract.".
Page 3, line 3, delete "five (5) days following the" and insert "the
timeframe described in subdivision (2)".
Page 3, line 4, delete "public meeting in which it was considered".
(Reference is to HB 1158 Digest Correction as printed January 16,
2024.)
ZIMMERMAN
_____
COMMITTEE REPORT
Madam President: The Senate Committee on Local Government, to
which was referred House Bill No. 1158, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Page 1, delete lines 1 through 17, begin a new paragraph and insert:
"SECTION 1. IC 36-2-2.8 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]:
Chapter 2.8. County Contracts; Requirements
Sec. 1. This chapter only applies to a county not having a
consolidated city.
Sec. 2. (a) As used in this chapter, "contract" means a contract
for the purchase of:
(1) real property;
(2) tangible or intangible personal property; or
(3) services (as defined in IC 5-22-2-30).
(b) The term does not include a contract concerning the issuance
of:
(1) a bond to finance the construction of a public facility; or
(2) a bond or other type of security for the payment of a lease
obligation.
Sec. 3. As used in this chapter, "county officer" has the meaning
EH 1158—LS 6424/DI 137 9
set forth in IC 36-2-2.9-3.
Sec. 4. A contract entered into by a county, including a contract
executed by a county officer, must meet the following
requirements:
(1) The contract must be executed in the name of the county.
(2) Any property purchases for public use shall be:
(A) titled to; or
(B) documented as owned by;
the county.".
Page 2, delete lines 1 through 2, begin a new paragraph and insert:
"Sec. 5. The county executive may, by ordinance, require
standard contractual language to be used in all contracts entered
into by the county, including contracts executed by a county
officer. The ordinance may include:".
Page 2, line 3, delete "(A)", begin a new line block indented and
insert:
"(1)".
Page 2, line 4, delete "(B)", begin a new line block indented and
insert:
"(2)".
Page 2, line 5, delete "(C)", begin a new line block indented and
insert:
"(3)".
Page 2, line 6, delete "(D)", begin a new line block indented and
insert:
"(4)".
Page 2, line 7, delete "(E)", begin a new line block indented and
insert:
"(5)".
Page 2, delete lines 8 through 42, begin a new paragraph and insert:
"SECTION 2. IC 36-2-2.9 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]:
Chapter 2.9. Review of County Contracts
Sec. 1. This chapter only applies to a county not having a
consolidated city.
Sec. 2. The definitions in IC 36-2-2.8 apply to this chapter.
Sec. 3. As used in this chapter, "county officer" means the
following:
(1) Assessor.
(2) Auditor.
(3) Coroner.
EH 1158—LS 6424/DI 137 10
(4) Recorder.
(5) Sheriff.
(6) Surveyor.
(7) Treasurer.
(8) Clerk of the circuit court.
(9) County fiscal body.
Sec. 4. (a) If a county officer has a proposed contract:
(1) that the county officer believes is necessary for the county
officer to carry out a constitutional or statutory duty of office;
and
(2) for which funds have been appropriated by the county
fiscal body to pay for the contract;
the county officer must submit the contract for review under this
chapter.
(b) The county executive may void a contract that a county
officer executes without first complying with this chapter.
Sec. 5. To initiate a contract review, the county officer must
submit to the county auditor the following:
(1) A request for review.
(2) A copy of the proposed contract. The contract must
comply with IC 36-2-2.8, including using the standard terms
required by ordinance under IC 36-2-2.8-5.
The county auditor shall date stamp the request and immediately
forward copies of the request and contract to the president of the
county executive and county attorney.
Sec. 6. Not later than twenty (20) days after the request is filed
with the county auditor:
(1) the county executive and county attorney shall review the
proposed contract; and
(2) the county executive shall notify the county officer of the
results of the review.
Sec. 7. (a) If the county attorney determines that the contract
does not comply with:
(1) state law; or
(2) any applicable public purchasing or bidding laws;
the contract is disapproved and may not be executed by the county
officer.
(b) The county attorney shall notify the county executive of the
results of the review.
Sec. 8. If the contract:
(1) is not disapproved under section 7 of this chapter; and
(2) the county executive finds the contract:
EH 1158—LS 6424/DI 137 11
(A) complies with IC 36-2-2.8; and
(B) is otherwise acceptable;
the county executive may approve and authorize execution of the
contract by the county officer or the county executive.
Sec. 9. (a) If the county executive finds the contract:
(1) does not comply with IC 36-2-2.8; or
(2) is otherwise not acceptable for reasons other than those
determined under section 7 of this chapter;
the county executive must provide the county officer with a written
statement described in subsection (b).
(b) The county executive must provide a written statement as
part of the notification of the review results under section 11 of this
chapter that:
(1) explains why the contract is not acceptable; and
(2) provides recommendations, if any, for making the contract
acceptable to the county executive.
Sec. 10. The county executive has the responsibility of notifying
the county officer of the results of the review conducted by the
county attorney and the county executive.
Sec. 11. If:
(1) the review; and
(2) the notification of the review results, including the written
statement under section 9(b) of this chapter, if applicable;
are not made within the time required under section 6 of this
chapter, the contract shall be considered acceptable and the county
officer may execute the contract.
Sec. 12. (a) This section only applies to a contract that:
(1) the county attorney does not disapprove under section 7 of
this chapter; and
(2) is found to be unacceptable by the county executive under
section 9 of this chapter.
(b) The county officer may do the following:
(1) Revise the contract and file a new request for review
under this chapter.
(2) Execute the contract, if the county officer determines the
contract complies with IC 36-2-2.8.
Sec. 13. (a) A county officer must submit the contract to the
county auditor not more than ten (10) days after the contract is
executed.
(b) A contract that is executed by a county officer:
(1) under section 12(b)(2); and
(2) submitted to the county auditor more than ten (10) days
EH 1158—LS 6424/DI 137 12
after execution;
is voidable by the county executive.".
Page 3, delete lines 1 through 31, begin a new paragraph and insert:
"Sec. 14. The county auditor shall upload a contract submitted
under section 13 of this chapter to the Indiana transparency
website under IC 5-14-3.8-3.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1158 as reprinted January 19, 2024.)
BUCK, Chairperson
Committee Vote: Yeas 10, Nays 0.
EH 1158—LS 6424/DI 137