Introduced Version
HOUSE BILL No. 1232
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-16-13.
Synopsis: Fair and open competition for public projects. Provides that
a public agency may not do any of the following: (1) Require a
potential bidder on a public works project to provide any information
that the potential bidder considers confidential or proprietary as a
requirement for the public agency finding the bidder to be a responsive
or responsible bidder. (2) By rule, ordinance, or any other action
relating to contracts for public works projects for which competitive
bids are required impose any requirement that directly or indirectly
restricts potential bidders to any predetermined class of bidders defined
by experience on similar projects, size of company, union membership
or requiring the use of union labor, or any other criteria. (3) Take
certain actions based on a bidder's, offeror's, or contractor's entering
into, refusing to enter into, adhering to, or refusing to adhere to an
agreement with a labor organization.
Effective: Upon passage.
Goodrich, VanNatter, Torr
January 9, 2024, read first time and referred to Committee on Employment, Labor and
Pensions.
2024 IN 1232—LS 6589/DI 137 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. 1232
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 5-16-13-10.2 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE UPON PASSAGE]: Sec. 10.2. (a) A public agency may
4 not require a potential bidder on a public works project to provide
5 any information that the potential bidder considers confidential or
6 proprietary as a requirement for the public agency finding the
7 bidder to be a responsive or responsible bidder.
8 (b) This section does not prohibit a public agency from
9 obtaining information from the lowest responsive bidder to
10 determine the bidder's responsibility relating to the bidder's
11 experience, number of employees, and ability to finance the cost of
12 the public works project.
13 SECTION 2. IC 5-16-13-10.4 IS ADDED TO THE INDIANA
14 CODE AS A NEW SECTION TO READ AS FOLLOWS
15 [EFFECTIVE UPON PASSAGE]: Sec. 10.4. A public agency may not
16 by rule, ordinance, or any other action relating to contracts for
17 public works projects for which competitive bids are required
2024 IN 1232—LS 6589/DI 137 2
1 impose any requirement that directly or indirectly restricts
2 potential bidders to any predetermined class of bidders defined by
3 experience on similar projects, size of company, union membership
4 or requiring the use of union labor, or any other criteria.
5 SECTION 3. IC 5-16-13-10.6 IS ADDED TO THE INDIANA
6 CODE AS A NEW SECTION TO READ AS FOLLOWS
7 [EFFECTIVE UPON PASSAGE]: Sec. 10.6. (a) A public agency
8 awarding a contract for a public works project may not in the bid
9 specifications, project agreements, or other contract documents do
10 any of the following:
11 (1) Require a bidder, offeror, or contractor in any contractor
12 tier to enter into or adhere to an agreement with a labor
13 organization relating to the public works project or any other
14 public works project.
15 (2) Prohibit a bidder, offeror, or contractor in any contractor
16 tier from entering into or adhering to an agreement with a
17 labor organization relating to the public works project or any
18 other public works project.
19 (3) Discriminate against a bidder, offeror, or contractor in
20 any contractor tier for any of the following:
21 (A) Becoming or remaining a signatory to an agreement
22 with a labor organization relating to the public works
23 project or any other public works project.
24 (B) Refusing to become or remain a signatory to an
25 agreement with a labor organization relating to the public
26 works project or any other public works project.
27 (C) Adhering or refusing to adhere to an agreement with
28 a labor organization relating to the public works project or
29 any other public works project.
30 (b) A public agency may not award a grant, tax abatement, or
31 tax credit that is conditioned upon a requirement that the person
32 awarded the grant, tax abatement, or tax credit include a term
33 described in subsection (a) in a contract document for any public
34 works project that is the subject of the grant, tax abatement, or tax
35 credit.
36 (c) This section does not do any of the following:
37 (1) Prohibit a public agency from awarding a contract, grant,
38 tax abatement, or tax credit to a private owner, bidder, or
39 contractor in any contractor tier who enters into or who is a
40 party to an agreement with a labor organization, if:
41 (A) being or becoming a party or adhering to an agreement
42 with a labor organization is not a condition for award of
2024 IN 1232—LS 6589/DI 137 3
1 the contract, grant, tax abatement, or tax credit; and
2 (B) the public agency does not discriminate against a
3 private owner, bidder, or contractor in the awarding of
4 that contract, grant, tax abatement, or tax credit based
5 upon the private owner's, bidder's, or contractor's status
6 as being or becoming, or the willingness or refusal to
7 become, a party to an agreement with a labor organization.
8 (2) Prohibit a contractor in any contractor tier from
9 voluntarily entering into or complying with an agreement
10 entered into with a labor organization in regard to a contract
11 with a public agency or funded in whole or in part from a
12 grant, tax abatement, or tax credit from a public agency.
13 (3) Prohibit employers or other parties from entering into
14 agreements or engaging in any other activity protected by the
15 federal National Labor Relations Act (29 U.S.C. 151 et seq.).
16 (4) Interfere with labor relations of parties that are not
17 regulated under the federal National Labor Relations Act (29
18 U.S.C. 151 et seq.).
19 (d) A public agency may exempt a particular project, contract,
20 grant, tax abatement, or tax credit from the requirements of any
21 or all of the provisions of this section if the public agency finds,
22 after public notice and hearing, that special circumstances require
23 an exemption to avert an imminent threat to public health or
24 safety. A finding of special circumstances under this subsection
25 may not be based on the possibility or presence of a labor dispute
26 concerning:
27 (1) the use of contractors in any contractor tier who are not
28 signatories to, or otherwise do not adhere to, agreements with
29 one (1) or more labor organizations; or
30 (2) employees on the project who are not members of, or
31 affiliated with, a labor organization.
32 SECTION 4. An emergency is declared for this act.
2024 IN 1232—LS 6589/DI 137