Indiana 2024 Regular Session

Indiana Senate Bill SB0196 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 196
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 4-13-16.5.
7	7	Synopsis: Supplier diversity. Amends the definition of "state agency"
8	8	for purposes of the governor's commission on supplier diversity. Makes
9	9	conforming changes.
10	10	Effective: July 1, 2024.
11	11	Taylor G
12	12	January 9, 2024, read first time and referred to Committee on Commerce and Technology.
13	13	2024 IN 196—LS 6766/DI 137 Introduced
14	14	Second Regular Session of the 123rd General Assembly (2024)
15	15	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
16	16	Constitution) is being amended, the text of the existing provision will appear in this style type,
17	17	additions will appear in this style type, and deletions will appear in this style type.
18	18	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
19	19	provision adopted), the text of the new provision will appear in this style type. Also, the
20	20	word NEW will appear in that style type in the introductory clause of each SECTION that adds
21	21	a new provision to the Indiana Code or the Indiana Constitution.
22	22	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
23	23	between statutes enacted by the 2023 Regular Session of the General Assembly.
24	24	SENATE BILL No. 196
25	25	A BILL FOR AN ACT to amend the Indiana Code concerning state
26	26	offices and administration.
27	27	Be it enacted by the General Assembly of the State of Indiana:
28	28	1 SECTION 1. IC 4-13-16.5-1, AS AMENDED BY P.L.15-2020,
29	29	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30	30	3 JULY 1, 2024]: Sec. 1. (a) The definitions in this section apply
31	31	4 throughout this chapter.
32	32	5 (b) "Commission" refers to the governor's commission on supplier
33	33	6 diversity established under section 2 of this chapter.
34	34	7 (c) "Commissioner" refers to the commissioner of the department.
35	35	8 (d) "Contract" means any contract awarded by a state agency or, as
36	36	9 set forth in section 2(f)(11) of this chapter, awarded by a recipient of
37	37	10 state grant funds, for construction projects or the procurement of goods
38	38	11 or services, including professional services. For purposes of this
39	39	12 subsection, "goods or services" may not include the following when
40	40	13 determining the total value of contracts for state agencies:
41	41	14 (1) Utilities.
42	42	15 (2) Health care services (as defined in IC 27-8-11-1(c)).
43	43	16 (3) Rent paid for real property or payments constituting the price
44	44	17 of an interest in real property as a result of a real estate
45	45	2024 IN 196—LS 6766/DI 137 2
46	46	1 transaction.
47	47	2 (e) "Contractor" means a person or entity that:
48	48	3 (1) contracts with a state agency; or
49	49	4 (2) as set forth in section 2(f)(11) of this chapter:
50	50	5 (A) is a recipient of state grant funds; and
51	51	6 (B) enters into a contract:
52	52	7 (i) with a person or entity other than a state agency; and
53	53	8 (ii) that is paid for in whole or in part with the state grant
54	54	9 funds.
55	55	10 (f) "Department" refers to the Indiana department of administration
56	56	11 established by IC 4-13-1-2.
57	57	12 (g) "Deputy commissioner" refers to the deputy commissioner for
58	58	13 supplier diversity of the department.
59	59	14 (h) "Minority business enterprise" or "minority business" means an
60	60	15 individual, partnership, corporation, limited liability company, or joint
61	61	16 venture of any kind that is owned and controlled by one (1) or more
62	62	17 persons who are:
63	63	18 (1) United States citizens; and
64	64	19 (2) members of a minority group or a qualified minority nonprofit
65	65	20 corporation.
66	66	21 (i) "NGB-22" means the National Guard Report of Separation form
67	67	22 or its predecessor or successor form.
68	68	23 (j) "Qualified minority or women's nonprofit corporation" means a
69	69	24 corporation that:
70	70	25 (1) is exempt from federal income taxation under Section
71	71	26 501(c)(3) of the Internal Revenue Code;
72	72	27 (2) is headquartered in Indiana;
73	73	28 (3) has been in continuous existence for at least five (5) years;
74	74	29 (4) has a board of directors that has been in compliance with all
75	75	30 other requirements of this chapter for at least five (5) years;
76	76	31 (5) is chartered for the benefit of the minority community or
77	77	32 women; and
78	78	33 (6) provides a service that will not impede competition among
79	79	34 minority business enterprises or women's business enterprises at
80	80	35 the time a nonprofit applies for certification as a minority
81	81	36 business enterprise or a women's business enterprise.
82	82	37 (k) "Owned and controlled" means:
83	83	38 (1) if the business is a qualified minority nonprofit corporation, a
84	84	39 majority of the board of directors are minority;
85	85	40 (2) if the business is a qualified women's nonprofit corporation,
86	86	41 a majority of the members of the board of directors are women; or
87	87	42 (3) if the business is a business other than a qualified minority or
88	88	2024 IN 196—LS 6766/DI 137 3
89	89	1 women's nonprofit corporation, having:
90	90	2 (A) ownership of at least fifty-one percent (51%) of the
91	91	3 enterprise, including corporate stock of a corporation;
92	92	4 (B) control over the management and active in the day-to-day
93	93	5 operations of the business; and
94	94	6 (C) an interest in the capital, assets, and profits and losses of
95	95	7 the business proportionate to the percentage of ownership.
96	96	8 (l) "Minority group" means:
97	97	9 (1) African Americans;
98	98	10 (2) Native Americans;
99	99	11 (3) Hispanic Americans; and
100	100	12 (4) Asian Americans.
101	101	13 (m) "Separate body corporate and politic" refers to an entity
102	102	14 established by the general assembly as a body corporate and politic.
103	103	15 (n) "State agency" refers to:
104	104	16 (1) any authority, board, branch, commission, committee,
105	105	17 department, division, or other instrumentality of the executive,
106	106	18 including the administrative, department of state government;
107	107	19 (2) a separate body corporate and politic;
108	108	20 (3) a state educational institution; and
109	109	21 (4) the Indiana public retirement system established by
110	110	22 IC 5-10.5-2-1.
111	111	23 (o) "Veteran" means an individual who:
112	112	24 (1) has previously:
113	113	25 (A) served on active duty in any branch of the armed forces of
114	114	26 the United States or their reserves, in the national guard, or in
115	115	27 the Indiana National Guard; and
116	116	28 (B) received an honorable discharge from service; or
117	117	29 (2) is currently serving in:
118	118	30 (A) any branch of the armed forces of the United States or
119	119	31 their reserves;
120	120	32 (B) the national guard; or
121	121	33 (C) the Indiana National Guard.
122	122	34 (p) "Veteran owned small business" refers to a small business that:
123	123	35 (1) is independently owned and operated;
124	124	36 (2) is not dominant in its field of operation; and
125	125	37 (3) satisfies the criteria to be a veteran owned small business
126	126	38 concern as specified in section 1.5 of this chapter.
127	127	39 (q) "Women's business enterprise" means a business that is one (1)
128	128	40 of the following:
129	129	41 (1) A sole proprietorship owned and controlled by a woman.
130	130	42 (2) A partnership or joint venture owned and controlled by
131	131	2024 IN 196—LS 6766/DI 137 4
132	132	1 women in which:
133	133	2 (A) at least fifty-one percent (51%) of the ownership is held by
134	134	3 women; and
135	135	4 (B) the management and daily business operations are
136	136	5 controlled by at least one (1) of the women who owns the
137	137	6 business.
138	138	7 (3) A corporation or other entity:
139	139	8 (A) whose management and daily business operations are
140	140	9 controlled by at least one (1) of the women who owns the
141	141	10 business; and
142	142	11 (B) that is at least fifty-one percent (51%) owned by women,
143	143	12 or if stock is issued, at least fifty-one percent (51%) of the
144	144	13 stock is owned by at least one (1) of the women.
145	145	14 (4) A qualified women's nonprofit corporation.
146	146	15 SECTION 2. IC 4-13-16.5-2, AS AMENDED BY P.L.15-2020,
147	147	16 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
148	148	17 JULY 1, 2024]: Sec. 2. (a) There is established a governor's
149	149	18 commission on supplier diversity. The commission shall consist of the
150	150	19 following members:
151	151	20 (1) A governor's designee, who shall serve as chairman of the
152	152	21 commission.
153	153	22 (2) The commissioner of the Indiana department of transportation,
154	154	23 or the economic opportunity director of the Indiana department of
155	155	24 transportation if the commissioner of the Indiana department of
156	156	25 transportation so designates.
157	157	26 (3) The chairperson of the board of the Indiana economic
158	158	27 development corporation or the chairperson's designee.
159	159	28 (4) The commissioner.
160	160	29 (5) Nine (9) individuals with demonstrated capabilities in
161	161	30 business and industry, especially minority business enterprises,
162	162	31 women's business enterprises, and veteran owned small
163	163	32 businesses, appointed by the governor from the following
164	164	33 geographical areas of the state:
165	165	34 (A) Three (3) from the northern one-third (1/3) of the state.
166	166	35 (B) Three (3) from the central one-third (1/3) of the state.
167	167	36 (C) Three (3) from the southern one-third (1/3) of the state.
168	168	37 (6) Two (2) members of the house of representatives, no more
169	169	38 than one (1) from the same political party, appointed by the
170	170	39 speaker of the house of representatives to serve in a nonvoting
171	171	40 advisory capacity.
172	172	41 (7) Two (2) members of the senate, no more than one (1) from the
173	173	42 same political party, appointed by the president pro tempore of
174	174	2024 IN 196—LS 6766/DI 137 5
175	175	1 the senate to serve in a nonvoting advisory capacity.
176	176	2 (8) The deputy commissioner, who shall serve as a nonvoting
177	177	3 member.
178	178	4 Not more than six (6) of the ten (10) members appointed or designated
179	179	5 by the governor may be of the same political party. Appointed members
180	180	6 of the commission shall serve four (4) year terms. A vacancy occurs if
181	181	7 a legislative member leaves office for any reason. Any vacancy on the
182	182	8 commission shall be filled in the same manner as the original
183	183	9 appointment.
184	184	10 (b) Each member of the commission who is not a state employee is
185	185	11 entitled to the following:
186	186	12 (1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
187	187	13 (2) Reimbursement for traveling expenses and other expenses
188	188	14 actually incurred in connection with the member's duties as
189	189	15 provided under IC 4-13-1-4 and in the state travel policies and
190	190	16 procedures established by the Indiana department of
191	191	17 administration and approved by the budget agency.
192	192	18 (c) Each legislative member of the commission is entitled to receive
193	193	19 the same per diem, mileage, and travel allowances established by the
194	194	20 legislative council and paid to members of the general assembly
195	195	21 serving on interim study committees. The allowances specified in this
196	196	22 subsection shall be paid by the legislative services agency from the
197	197	23 amounts appropriated for that purpose.
198	198	24 (d) A member of the commission who is a state employee but who
199	199	25 is not a member of the general assembly is not entitled to any of the
200	200	26 following:
201	201	27 (1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
202	202	28 (2) Reimbursement for traveling expenses as provided under
203	203	29 IC 4-13-1-4.
204	204	30 (3) Other expenses actually incurred in connection with the
205	205	31 member's duties.
206	206	32 (e) The commission shall meet at least four (4) times each year and
207	207	33 at other times as the chairman considers necessary.
208	208	34 (f) The duties of the commission shall include but not be limited to
209	209	35 the following:
210	210	36 (1) Identify minority business enterprises, women's business
211	211	37 enterprises, and veteran owned small businesses in the state.
212	212	38 (2) Assess the needs of minority business enterprises, women's
213	213	39 business enterprises, and veteran owned small businesses.
214	214	40 (3) Initiate aggressive programs to assist minority business
215	215	41 enterprises, women's business enterprises, and veteran owned
216	216	42 small businesses in obtaining state contracts.
217	217	2024 IN 196—LS 6766/DI 137 6
218	218	1 (4) Give special publicity to procurement, bidding, and qualifying
219	219	2 procedures.
220	220	3 (5) Include minority business enterprises, women's business
221	221	4 enterprises, and veteran owned small businesses on solicitation
222	222	5 mailing lists.
223	223	6 (6) Evaluate the competitive differences between qualified
224	224	7 minority or women's nonprofit corporations and other than
225	225	8 qualified minority or women's nonprofit corporations and veteran
226	226	9 owned small businesses that offer similar services and make
227	227	10 recommendation to the department on policy changes necessary
228	228	11 to ensure fair competition among minority business enterprises,
229	229	12 women's business enterprises, and veteran owned small
230	230	13 businesses.
231	231	14 (7) Define the duties, goals, and objectives of the deputy
232	232	15 commissioner of the department as created under this chapter to
233	233	16 assure compliance by all state agencies separate bodies corporate
234	234	17 and politic, and state educational institutions with state and
235	235	18 federal legislation and policy concerning the awarding of
236	236	19 contracts (including, notwithstanding section 1(d) of this chapter
237	237	20 or any other law, contracts of state educational institutions) to
238	238	21 minority business enterprises, women's business enterprises, and
239	239	22 veteran owned small businesses.
240	240	23 (8) Establish annual goals:
241	241	24 (A) for the use of minority and women's business enterprises;
242	242	25 and
243	243	26 (B) derived from a statistical analysis of utilization study of
244	244	27 state contracts (including, notwithstanding section 1(d) of this
245	245	28 chapter or any other law, contracts of state educational
246	246	29 institutions) that are required to be updated every five (5)
247	247	30 years.
248	248	31 (9) Prepare a review of the commission and the various affected
249	249	32 departments of government to be submitted to the governor and
250	250	33 the legislative council on March 1 and October 1 of each year,
251	251	34 evaluating progress made in the areas defined in this subsection.
252	252	35 (10) Ensure that the statistical analysis required under this
253	253	36 section:
254	254	37 (A) is based on goals for participation of minority business
255	255	38 enterprises established in Richmond v. Croson, 488 U.S. 469
256	256	39 (1989);
257	257	40 (B) includes information on both contracts and subcontracts
258	258	41 (including, notwithstanding section 1(d) of this chapter or any
259	259	42 other law, contracts and subcontracts of state educational
260	260	2024 IN 196—LS 6766/DI 137 7
261	261	1 institutions); and
262	262	2 (C) uses data on the combined capacity of minority business
263	263	3 enterprises, women's business enterprises, and veteran owned
264	264	4 small businesses in Indiana and not just regional data.
265	265	5 (11) Establish annual goals for the use of minority business
266	266	6 enterprises, women's business enterprises, and veteran owned
267	267	7 small businesses for any contract that:
268	268	8 (A) will be paid for in whole or in part with state grant funds;
269	269	9 and
270	270	10 (B) involves the use of real property of a unit (as defined in
271	271	11 IC 4-4-32.2-9).
272	272	12 (12) Ensure compliance with the establishment and evaluation of
273	273	13 the annual goal for veteran owned small businesses established in
274	274	14 section 3.5 of this chapter.
275	275	15 (g) The department shall direct contractors to demonstrate a good
276	276	16 faith effort to meet the annual participation goals established under
277	277	17 subsection (f)(11). The good faith effort shall be demonstrated by
278	278	18 contractors using the repository of certified firms created under section
279	279	19 3 of this chapter or a similar repository maintained by a unit (as defined
280	280	20 in IC 4-4-32.2-9).
281	281	21 (h) The department shall adopt rules of ethics under IC 4-22-2 for
282	282	22 commission members other than commission members appointed
283	283	23 under subsection (a)(6) or (a)(7).
284	284	24 (i) The department shall furnish administrative support and staff as
285	285	25 is necessary for the effective operation of the commission.
286	286	26 (j) The commission shall advise the department on developing a
287	287	27 statement, to be included in all applications for and agreements
288	288	28 governing grants made with state funds, stating the importance of the
289	289	29 use of minority business enterprises, women's business enterprises, and
290	290	30 veteran owned small businesses in fulfilling the purposes of the grant.
291	291	31 SECTION 3. IC 4-13-16.5-3, AS AMENDED BY P.L.15-2020,
292	292	32 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
293	293	33 JULY 1, 2024]: Sec. 3. (a) There is created in the department a deputy
294	294	34 commissioner for supplier diversity development. Upon consultation
295	295	35 with the commission, the commissioner of the department, with the
296	296	36 approval of the governor, shall appoint an individual who possesses
297	297	37 demonstrated capability in business or industry, especially in minority
298	298	38 business enterprises, women's business enterprises, or veteran owned
299	299	39 small businesses, to serve as deputy commissioner to work with the
300	300	40 commission in the implementation of this chapter.
301	301	41 (b) The deputy commissioner shall do the following:
302	302	42 (1) Identify and certify minority business enterprises, women's
303	303	2024 IN 196—LS 6766/DI 137 8
304	304	1 business enterprises, and veteran owned small businesses for state
305	305	2 projects.
306	306	3 (2) Establish a central certification file.
307	307	4 (3) Periodically update the certification status of each minority
308	308	5 business enterprise, women's business enterprise, or veteran
309	309	6 owned small business.
310	310	7 (4) Monitor the progress in achieving the goals established under
311	311	8 section 2(f)(8) and 2(f)(11) of this chapter.
312	312	9 (5) Require all state agencies separate bodies corporate and
313	313	10 politic, and state educational institutions to report on planned and
314	314	11 actual participation of minority business enterprises, women's
315	315	12 business enterprises, and veteran owned small businesses in
316	316	13 contracts awarded by state agencies. The commissioner may
317	317	14 exclude from the reports uncertified minority business enterprises,
318	318	15 women's business enterprises, and veteran owned small
319	319	16 businesses.
320	320	17 (6) Determine and define opportunities for minority, women's,
321	321	18 and veteran owned business participation in contracts awarded by
322	322	19 all state agencies. separate bodies corporate and politic, and state
323	323	20 educational institutions.
324	324	21 (7) Implement programs initiated by the commission under
325	325	22 section 2 of this chapter.
326	326	23 (8) Perform other duties as defined by the commission or by the
327	327	24 commissioner.
328	328	2024 IN 196—LS 6766/DI 137