LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7246 NOTE PREPARED: Jan 30, 2025
BILL NUMBER: HB 1198 BILL AMENDED: Jan 30, 2025
SUBJECT: Local Public Work Projects.
FIRST AUTHOR: Rep. Lawson BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: (Amended) Public Works Board and Aviation Boards /Authorities Contract
Bidding: This bill changes the amount of a public work project that a board may perform using its own
workforce, without awarding a contract, from an estimated cost of less than $250,000 to an estimated cost
of less than $500,000. It provides that a board of aviation commissioners and an airport authority are subject
to the same procedures as a school corporation for certain public work projects.
Federal Grant Funding: The bill provides that if a federal grant is to be issued to fund a portion of the
construction on a public work project, the successful bidder has 90 days to proceed with the contract.
Architect/Engineer Review: The bill provides that plans and specifications approved by an architect or
engineer are not required for certain public work on a public building.
Effective Date: July 1, 2025.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: (Revised)Public Works Board and Aviation Boards /Authorities
Contract Bidding-The overall impact on local expenditures is indeterminable. The actual fiscal impact will
vary from locality to locality and will be contingent on how many work projects reach the revised threshold
to go through the public bidding process. The bill’s requirements pertaining to the project cost thresholds
for public works boards, boards of aviation commissioners, and airport authority may result in a decrease in
the administrative workload for the applicable local unit of government if there is a decrease in the need to
go through the public bidding process. However, if the local unit’s public works board, board of aviation
commissioners, and/or airport authority had to go through the public bidding process, it is possible that a
contractor could come in at a lower bid than what it would cost to perform the work using the unit’s own
workers and equipment.
HB 1198 1 Federal Grant Funding– This provision would allow for 90 days from the awarding of the bid for the
successful bidder to begin the public work project if a portion is funded by Federal grants. This would be
inline with current practice when general obligation bonds are used to help finance construction of the public
work project.
Architect/Engineer Review– This provision may slightly reduce contract costs on certain local public work
projects, if there was no need to pay for the services of an architect or engineer review of the proposed
project.
Explanation of Local Revenues:
State Agencies Affected:
Local Agencies Affected: Boards of aviation, airport authorities; Local public works boards.
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869; Chris Baker, 317-232-9851.
HB 1198 2