Introduced Version
SENATE BILL No. 196
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-13-16.5.
Synopsis: Supplier diversity. Amends the definition of "state agency"
for purposes of the governor's commission on supplier diversity. Makes
conforming changes.
Effective: July 1, 2024.
Taylor G
January 9, 2024, read first time and referred to Committee on Commerce and Technology.
2024 IN 196—LS 6766/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.
SENATE BILL No. 196
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-13-16.5-1, AS AMENDED BY P.L.15-2020,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 1. (a) The definitions in this section apply
4 throughout this chapter.
5 (b) "Commission" refers to the governor's commission on supplier
6 diversity established under section 2 of this chapter.
7 (c) "Commissioner" refers to the commissioner of the department.
8 (d) "Contract" means any contract awarded by a state agency or, as
9 set forth in section 2(f)(11) of this chapter, awarded by a recipient of
10 state grant funds, for construction projects or the procurement of goods
11 or services, including professional services. For purposes of this
12 subsection, "goods or services" may not include the following when
13 determining the total value of contracts for state agencies:
14 (1) Utilities.
15 (2) Health care services (as defined in IC 27-8-11-1(c)).
16 (3) Rent paid for real property or payments constituting the price
17 of an interest in real property as a result of a real estate
2024 IN 196—LS 6766/DI 137 2
1 transaction.
2 (e) "Contractor" means a person or entity that:
3 (1) contracts with a state agency; or
4 (2) as set forth in section 2(f)(11) of this chapter:
5 (A) is a recipient of state grant funds; and
6 (B) enters into a contract:
7 (i) with a person or entity other than a state agency; and
8 (ii) that is paid for in whole or in part with the state grant
9 funds.
10 (f) "Department" refers to the Indiana department of administration
11 established by IC 4-13-1-2.
12 (g) "Deputy commissioner" refers to the deputy commissioner for
13 supplier diversity of the department.
14 (h) "Minority business enterprise" or "minority business" means an
15 individual, partnership, corporation, limited liability company, or joint
16 venture of any kind that is owned and controlled by one (1) or more
17 persons who are:
18 (1) United States citizens; and
19 (2) members of a minority group or a qualified minority nonprofit
20 corporation.
21 (i) "NGB-22" means the National Guard Report of Separation form
22 or its predecessor or successor form.
23 (j) "Qualified minority or women's nonprofit corporation" means a
24 corporation that:
25 (1) is exempt from federal income taxation under Section
26 501(c)(3) of the Internal Revenue Code;
27 (2) is headquartered in Indiana;
28 (3) has been in continuous existence for at least five (5) years;
29 (4) has a board of directors that has been in compliance with all
30 other requirements of this chapter for at least five (5) years;
31 (5) is chartered for the benefit of the minority community or
32 women; and
33 (6) provides a service that will not impede competition among
34 minority business enterprises or women's business enterprises at
35 the time a nonprofit applies for certification as a minority
36 business enterprise or a women's business enterprise.
37 (k) "Owned and controlled" means:
38 (1) if the business is a qualified minority nonprofit corporation, a
39 majority of the board of directors are minority;
40 (2) if the business is a qualified women's nonprofit corporation,
41 a majority of the members of the board of directors are women; or
42 (3) if the business is a business other than a qualified minority or
2024 IN 196—LS 6766/DI 137 3
1 women's nonprofit corporation, having:
2 (A) ownership of at least fifty-one percent (51%) of the
3 enterprise, including corporate stock of a corporation;
4 (B) control over the management and active in the day-to-day
5 operations of the business; and
6 (C) an interest in the capital, assets, and profits and losses of
7 the business proportionate to the percentage of ownership.
8 (l) "Minority group" means:
9 (1) African Americans;
10 (2) Native Americans;
11 (3) Hispanic Americans; and
12 (4) Asian Americans.
13 (m) "Separate body corporate and politic" refers to an entity
14 established by the general assembly as a body corporate and politic.
15 (n) "State agency" refers to:
16 (1) any authority, board, branch, commission, committee,
17 department, division, or other instrumentality of the executive,
18 including the administrative, department of state government;
19 (2) a separate body corporate and politic;
20 (3) a state educational institution; and
21 (4) the Indiana public retirement system established by
22 IC 5-10.5-2-1.
23 (o) "Veteran" means an individual who:
24 (1) has previously:
25 (A) served on active duty in any branch of the armed forces of
26 the United States or their reserves, in the national guard, or in
27 the Indiana National Guard; and
28 (B) received an honorable discharge from service; or
29 (2) is currently serving in:
30 (A) any branch of the armed forces of the United States or
31 their reserves;
32 (B) the national guard; or
33 (C) the Indiana National Guard.
34 (p) "Veteran owned small business" refers to a small business that:
35 (1) is independently owned and operated;
36 (2) is not dominant in its field of operation; and
37 (3) satisfies the criteria to be a veteran owned small business
38 concern as specified in section 1.5 of this chapter.
39 (q) "Women's business enterprise" means a business that is one (1)
40 of the following:
41 (1) A sole proprietorship owned and controlled by a woman.
42 (2) A partnership or joint venture owned and controlled by
2024 IN 196—LS 6766/DI 137 4
1 women in which:
2 (A) at least fifty-one percent (51%) of the ownership is held by
3 women; and
4 (B) the management and daily business operations are
5 controlled by at least one (1) of the women who owns the
6 business.
7 (3) A corporation or other entity:
8 (A) whose management and daily business operations are
9 controlled by at least one (1) of the women who owns the
10 business; and
11 (B) that is at least fifty-one percent (51%) owned by women,
12 or if stock is issued, at least fifty-one percent (51%) of the
13 stock is owned by at least one (1) of the women.
14 (4) A qualified women's nonprofit corporation.
15 SECTION 2. IC 4-13-16.5-2, AS AMENDED BY P.L.15-2020,
16 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2024]: Sec. 2. (a) There is established a governor's
18 commission on supplier diversity. The commission shall consist of the
19 following members:
20 (1) A governor's designee, who shall serve as chairman of the
21 commission.
22 (2) The commissioner of the Indiana department of transportation,
23 or the economic opportunity director of the Indiana department of
24 transportation if the commissioner of the Indiana department of
25 transportation so designates.
26 (3) The chairperson of the board of the Indiana economic
27 development corporation or the chairperson's designee.
28 (4) The commissioner.
29 (5) Nine (9) individuals with demonstrated capabilities in
30 business and industry, especially minority business enterprises,
31 women's business enterprises, and veteran owned small
32 businesses, appointed by the governor from the following
33 geographical areas of the state:
34 (A) Three (3) from the northern one-third (1/3) of the state.
35 (B) Three (3) from the central one-third (1/3) of the state.
36 (C) Three (3) from the southern one-third (1/3) of the state.
37 (6) Two (2) members of the house of representatives, no more
38 than one (1) from the same political party, appointed by the
39 speaker of the house of representatives to serve in a nonvoting
40 advisory capacity.
41 (7) Two (2) members of the senate, no more than one (1) from the
42 same political party, appointed by the president pro tempore of
2024 IN 196—LS 6766/DI 137 5
1 the senate to serve in a nonvoting advisory capacity.
2 (8) The deputy commissioner, who shall serve as a nonvoting
3 member.
4 Not more than six (6) of the ten (10) members appointed or designated
5 by the governor may be of the same political party. Appointed members
6 of the commission shall serve four (4) year terms. A vacancy occurs if
7 a legislative member leaves office for any reason. Any vacancy on the
8 commission shall be filled in the same manner as the original
9 appointment.
10 (b) Each member of the commission who is not a state employee is
11 entitled to the following:
12 (1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
13 (2) Reimbursement for traveling expenses and other expenses
14 actually incurred in connection with the member's duties as
15 provided under IC 4-13-1-4 and in the state travel policies and
16 procedures established by the Indiana department of
17 administration and approved by the budget agency.
18 (c) Each legislative member of the commission is entitled to receive
19 the same per diem, mileage, and travel allowances established by the
20 legislative council and paid to members of the general assembly
21 serving on interim study committees. The allowances specified in this
22 subsection shall be paid by the legislative services agency from the
23 amounts appropriated for that purpose.
24 (d) A member of the commission who is a state employee but who
25 is not a member of the general assembly is not entitled to any of the
26 following:
27 (1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
28 (2) Reimbursement for traveling expenses as provided under
29 IC 4-13-1-4.
30 (3) Other expenses actually incurred in connection with the
31 member's duties.
32 (e) The commission shall meet at least four (4) times each year and
33 at other times as the chairman considers necessary.
34 (f) The duties of the commission shall include but not be limited to
35 the following:
36 (1) Identify minority business enterprises, women's business
37 enterprises, and veteran owned small businesses in the state.
38 (2) Assess the needs of minority business enterprises, women's
39 business enterprises, and veteran owned small businesses.
40 (3) Initiate aggressive programs to assist minority business
41 enterprises, women's business enterprises, and veteran owned
42 small businesses in obtaining state contracts.
2024 IN 196—LS 6766/DI 137 6
1 (4) Give special publicity to procurement, bidding, and qualifying
2 procedures.
3 (5) Include minority business enterprises, women's business
4 enterprises, and veteran owned small businesses on solicitation
5 mailing lists.
6 (6) Evaluate the competitive differences between qualified
7 minority or women's nonprofit corporations and other than
8 qualified minority or women's nonprofit corporations and veteran
9 owned small businesses that offer similar services and make
10 recommendation to the department on policy changes necessary
11 to ensure fair competition among minority business enterprises,
12 women's business enterprises, and veteran owned small
13 businesses.
14 (7) Define the duties, goals, and objectives of the deputy
15 commissioner of the department as created under this chapter to
16 assure compliance by all state agencies separate bodies corporate
17 and politic, and state educational institutions with state and
18 federal legislation and policy concerning the awarding of
19 contracts (including, notwithstanding section 1(d) of this chapter
20 or any other law, contracts of state educational institutions) to
21 minority business enterprises, women's business enterprises, and
22 veteran owned small businesses.
23 (8) Establish annual goals:
24 (A) for the use of minority and women's business enterprises;
25 and
26 (B) derived from a statistical analysis of utilization study of
27 state contracts (including, notwithstanding section 1(d) of this
28 chapter or any other law, contracts of state educational
29 institutions) that are required to be updated every five (5)
30 years.
31 (9) Prepare a review of the commission and the various affected
32 departments of government to be submitted to the governor and
33 the legislative council on March 1 and October 1 of each year,
34 evaluating progress made in the areas defined in this subsection.
35 (10) Ensure that the statistical analysis required under this
36 section:
37 (A) is based on goals for participation of minority business
38 enterprises established in Richmond v. Croson, 488 U.S. 469
39 (1989);
40 (B) includes information on both contracts and subcontracts
41 (including, notwithstanding section 1(d) of this chapter or any
42 other law, contracts and subcontracts of state educational
2024 IN 196—LS 6766/DI 137 7
1 institutions); and
2 (C) uses data on the combined capacity of minority business
3 enterprises, women's business enterprises, and veteran owned
4 small businesses in Indiana and not just regional data.
5 (11) Establish annual goals for the use of minority business
6 enterprises, women's business enterprises, and veteran owned
7 small businesses for any contract that:
8 (A) will be paid for in whole or in part with state grant funds;
9 and
10 (B) involves the use of real property of a unit (as defined in
11 IC 4-4-32.2-9).
12 (12) Ensure compliance with the establishment and evaluation of
13 the annual goal for veteran owned small businesses established in
14 section 3.5 of this chapter.
15 (g) The department shall direct contractors to demonstrate a good
16 faith effort to meet the annual participation goals established under
17 subsection (f)(11). The good faith effort shall be demonstrated by
18 contractors using the repository of certified firms created under section
19 3 of this chapter or a similar repository maintained by a unit (as defined
20 in IC 4-4-32.2-9).
21 (h) The department shall adopt rules of ethics under IC 4-22-2 for
22 commission members other than commission members appointed
23 under subsection (a)(6) or (a)(7).
24 (i) The department shall furnish administrative support and staff as
25 is necessary for the effective operation of the commission.
26 (j) The commission shall advise the department on developing a
27 statement, to be included in all applications for and agreements
28 governing grants made with state funds, stating the importance of the
29 use of minority business enterprises, women's business enterprises, and
30 veteran owned small businesses in fulfilling the purposes of the grant.
31 SECTION 3. IC 4-13-16.5-3, AS AMENDED BY P.L.15-2020,
32 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2024]: Sec. 3. (a) There is created in the department a deputy
34 commissioner for supplier diversity development. Upon consultation
35 with the commission, the commissioner of the department, with the
36 approval of the governor, shall appoint an individual who possesses
37 demonstrated capability in business or industry, especially in minority
38 business enterprises, women's business enterprises, or veteran owned
39 small businesses, to serve as deputy commissioner to work with the
40 commission in the implementation of this chapter.
41 (b) The deputy commissioner shall do the following:
42 (1) Identify and certify minority business enterprises, women's
2024 IN 196—LS 6766/DI 137 8
1 business enterprises, and veteran owned small businesses for state
2 projects.
3 (2) Establish a central certification file.
4 (3) Periodically update the certification status of each minority
5 business enterprise, women's business enterprise, or veteran
6 owned small business.
7 (4) Monitor the progress in achieving the goals established under
8 section 2(f)(8) and 2(f)(11) of this chapter.
9 (5) Require all state agencies separate bodies corporate and
10 politic, and state educational institutions to report on planned and
11 actual participation of minority business enterprises, women's
12 business enterprises, and veteran owned small businesses in
13 contracts awarded by state agencies. The commissioner may
14 exclude from the reports uncertified minority business enterprises,
15 women's business enterprises, and veteran owned small
16 businesses.
17 (6) Determine and define opportunities for minority, women's,
18 and veteran owned business participation in contracts awarded by
19 all state agencies. separate bodies corporate and politic, and state
20 educational institutions.
21 (7) Implement programs initiated by the commission under
22 section 2 of this chapter.
23 (8) Perform other duties as defined by the commission or by the
24 commissioner.
2024 IN 196—LS 6766/DI 137