Second Regular Session of the 123rd General Assembly (2024)
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HOUSE ENROLLED ACT No. 1158
AN ACT to amend the Indiana Code concerning local government.
Be it enacted by the General Assembly of the State of Indiana:
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
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:
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(A) titled to; or
(B) documented as owned by;
the county.
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:
(1) provisions for indemnification;
(2) dispute resolution provisions;
(3) venue requirements;
(4) termination provisions; and
(5) notification provisions.
Sec. 6. In addition to the county executive's authority under
IC 36-2-2.9 to approve contracts, the county executive may adopt
an ordinance to delegate additional authority to approve contracts
to other county officers and employees.
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.
(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 have the county executive execute the
contract or submit the contract for review under this chapter.
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(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 advises the county executive
that the contract does not comply with:
(1) state law; or
(2) any applicable public purchasing or bidding laws;
the county executive may disapprove the contract and the contract
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:
(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
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(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 executive 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
after execution;
is voidable by the county executive.
Sec. 14. The county auditor shall upload a contract submitted
under section 13 of this chapter to the Indiana transparency
website.
HEA 1158 — Concur Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1158 — Concur