*HB1198.2*
Reprinted
February 4, 2025
HOUSE BILL No. 1198
_____
DIGEST OF HB 1198 (Updated February 3, 2025 2:29 pm - DI 137)
Citations Affected: IC 36-1.
Synopsis: Local public work projects. 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. Removes the
distinction between a political subdivision that is a school corporation
and a political subdivision that is not a school corporation for the cost
of a public work project that is not subject to certain procedures.
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. Provides that plans and
specifications approved by an architect or engineer are not required for
certain public work on a public building.
Effective: July 1, 2025.
Lawson, Pressel, Mayfield, Miller K
January 8, 2025, read first time and referred to Committee on Employment, Labor and
Pensions.
January 30, 2025, amended, reported — Do Pass.
February 3, 2025, read second time, amended, ordered engrossed.
HB 1198—LS 7246/DI 137 Reprinted
February 4, 2025
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1198
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 36-1-12-3, AS AMENDED BY P.L.114-2022,
2 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 3. (a) The board may purchase or lease materials
4 in the manner provided in IC 5-22 and perform any public work, by
5 means of its own workforce, without awarding a contract whenever the
6 cost of that public work project is estimated to be less than two hundred
7 fifty thousand dollars ($250,000). five hundred thousand dollars
8 ($500,000). Before a board may perform any work under this section
9 by means of its own workforce, the political subdivision or agency
10 must have a group of employees on its staff who are capable of
11 performing the construction, maintenance, and repair applicable to that
12 work. For purposes of this subsection, the cost of a public work project
13 includes:
14 (1) the actual cost of materials, labor, equipment, and rental;
15 (2) a reasonable rate for use of trucks and heavy equipment
16 owned; and
17 (3) all other expenses incidental to the performance of the project.
HB 1198—LS 7246/DI 137 2
1 (b) This subsection applies only to a municipality or a county. The
2 workforce of a municipality or county may perform a public work
3 described in subsection (a) only if:
4 (1) the workforce, through demonstrated skills, training, or
5 expertise, is capable of performing the public work; and
6 (2) for a public work project under subsection (a) whose cost is
7 estimated to be more than one hundred thousand dollars
8 ($100,000), the board:
9 (A) publishes a notice under IC 5-3-1 that:
10 (i) describes the public work that the board intends to
11 perform with its own workforce; and
12 (ii) sets forth the projected cost of each component of the
13 public work as described in subsection (a); and
14 (B) determines at a public meeting that it is in the public
15 interest to perform the public work with the board's own
16 workforce.
17 A public work project performed by a board's own workforce must be
18 inspected and accepted as complete in the same manner as a public
19 work project performed under a contract awarded after receiving bids.
20 (c) When the project involves the rental of equipment with an
21 operator furnished by the owner, or the installation or application of
22 materials by the supplier of the materials, the project is considered to
23 be a public work project and subject to this chapter. However, an
24 annual contract may be awarded for equipment rental and materials to
25 be installed or applied during a calendar or fiscal year if the proposed
26 project or projects are described in the bid specifications.
27 (d) A board of aviation commissioners or an airport authority board
28 may purchase or lease materials in the manner provided in IC 5-22 and
29 perform any public work by means of its own workforce and owned or
30 leased equipment, in the construction, maintenance, and repair of any
31 airport roadway, runway, taxiway, or aircraft parking apron whenever
32 the cost of that public work project is estimated to be less than one
33 hundred fifty thousand dollars ($150,000).
34 (e) Municipal and county hospitals must comply with this chapter
35 for all contracts for public work that are financed in whole or in part
36 with cumulative building fund revenue, as provided in section 1(c) of
37 this chapter. However, if the cost of the public work is estimated to be
38 less than fifty thousand dollars ($50,000), as reflected in the board
39 minutes, the hospital board may have the public work done without
40 receiving bids, by purchasing the materials and performing the work by
41 means of its own workforce and owned or leased equipment.
42 (f) If a public works project involves a structure, an improvement,
HB 1198—LS 7246/DI 137 3
1 or a facility under the control of a public highway department that is
2 under the political control of a unit (as defined in IC 36-1-2-23) and
3 involved in the construction, maintenance, or repair of a public
4 highway (as defined in IC 9-25-2-4), the department may not
5 artificially divide the project to bring any part of the project under this
6 section.
7 SECTION 2. IC 36-1-12-4, AS AMENDED BY P.L.236-2023,
8 SECTION 159, IS AMENDED TO READ AS FOLLOWS
9 [EFFECTIVE JULY 1, 2025]: Sec. 4. (a) This section applies whenever
10 the cost of a public work project will be at least the following:
11 (1) three hundred thousand dollars ($300,000). if the political
12 subdivision is a school corporation.
13 (2) One hundred fifty thousand dollars ($150,000), if the political
14 subdivision is not a school corporation.
15 (b) The board must comply with the following procedure:
16 (1) The board shall prepare general plans and specifications
17 describing the kind of public work required, but shall avoid
18 specifications which might unduly limit competition. If the
19 project involves the resurfacing (as defined by IC 8-14-2-1) of a
20 road, street, or bridge, the specifications must show how the
21 weight or volume of the materials will be accurately measured
22 and verified.
23 (2) The board shall file the plans and specifications in a place
24 reasonably accessible to the public, which shall be specified in the
25 notice required by subdivision (3).
26 (3) Upon the filing of the plans and specifications, the board shall
27 publish notice in accordance with IC 5-3-1 calling for sealed
28 proposals for the public work needed. If the board receives
29 electronic bids as set forth in subsection (d), the board shall also
30 provide electronic access to the notice of the bid solicitation
31 through the computer gateway administered under
32 IC 4-13.1-2-2(a)(6) by the office of technology.
33 (4) The notice must specify the place where the plans and
34 specifications are on file and the date fixed for receiving bids.
35 (5) The period of time between the date of the first publication
36 and the date of receiving bids shall be governed by the size of the
37 contemplated project in the discretion of the board. The period of
38 time between the date of the first publication and receiving bids
39 may not be more than:
40 (A) six (6) weeks if the estimated cost of the public works
41 project is less than twenty-five million dollars ($25,000,000);
42 and
HB 1198—LS 7246/DI 137 4
1 (B) ten (10) weeks if the estimated cost of the public works
2 project is at least twenty-five million dollars ($25,000,000).
3 (6) The board shall require the bidder to submit a financial
4 statement, a statement of experience, a proposed plan or plans for
5 performing the public work, and the equipment that the bidder has
6 available for the performance of the public work. The statement
7 shall be submitted on forms prescribed by the state board of
8 accounts.
9 (7) The board may not require a bidder to submit a bid before the
10 meeting at which bids are to be received. The meeting for
11 receiving bids must be open to the public. All bids received shall
12 be opened publicly and read aloud at the time and place
13 designated and not before. Notwithstanding any other law, bids
14 may be opened after the time designated if both of the following
15 apply:
16 (A) The board makes a written determination that it is in the
17 best interest of the board to delay the opening.
18 (B) The day, time, and place of the rescheduled opening are
19 announced at the day, time, and place of the originally
20 scheduled opening.
21 (8) Except as provided in subsection (c), the board shall:
22 (A) award the contract for public work or improvements to the
23 lowest responsible and responsive bidder; or
24 (B) reject all bids submitted.
25 (9) If the board awards the contract to a bidder other than the
26 lowest bidder, the board must state in the minutes or memoranda,
27 at the time the award is made, the factors used to determine which
28 bidder is the lowest responsible and responsive bidder and to
29 justify the award. The board shall keep a copy of the minutes or
30 memoranda available for public inspection.
31 (10) In determining whether a bidder is responsive, the board may
32 consider the following factors:
33 (A) Whether the bidder has submitted a bid or quote that
34 conforms in all material respects to the specifications.
35 (B) Whether the bidder has submitted a bid that complies
36 specifically with the invitation to bid and the instructions to
37 bidders.
38 (C) Whether the bidder has complied with all applicable
39 statutes, ordinances, resolutions, or rules pertaining to the
40 award of a public contract.
41 (11) In determining whether a bidder is a responsible bidder, the
42 board may consider the following factors:
HB 1198—LS 7246/DI 137 5
1 (A) The ability and capacity of the bidder to perform the work.
2 (B) The integrity, character, and reputation of the bidder.
3 (C) The competence and experience of the bidder.
4 (12) The board shall require the bidder to submit an affidavit:
5 (A) that the bidder has not entered into a combination or
6 agreement:
7 (i) relative to the price to be bid by a person;
8 (ii) to prevent a person from bidding; or
9 (iii) to induce a person to refrain from bidding; and
10 (B) that the bidder's bid is made without reference to any other
11 bid.
12 (c) Notwithstanding subsection (b)(8), a county may award sand,
13 gravel, asphalt paving materials, or crushed stone contracts to more
14 than one (1) responsible and responsive bidder if the specifications
15 allow for bids to be based upon service to specific geographic areas and
16 the contracts are awarded by geographic area. The geographic areas do
17 not need to be described in the specifications.
18 (d) Notwithstanding subsection (b), a board may receive electronic
19 bids for the public work if:
20 (1) the solicitation for bids indicates the procedure for
21 transmitting the electronic bid to the board; and
22 (2) the board receives the bid on a facsimile machine or system
23 with a security feature that protects the content of an electronic
24 bid with the same degree of protection as the content of a bid that
25 is not transmitted by a facsimile machine.
26 (e) A board may select a vendor to provide an electronic platform
27 to accommodate the electronic bidding process.
28 SECTION 3. IC 36-1-12-4.7, AS AMENDED BY P.L.236-2023,
29 SECTION 160, IS AMENDED TO READ AS FOLLOWS
30 [EFFECTIVE JULY 1, 2025]: Sec. 4.7. (a) This section applies
31 whenever a public work project is estimated to cost at least the
32 following:
33 (1) fifty thousand dollars ($50,000) and less than three hundred
34 thousand dollars ($300,000). if the political subdivision is a
35 school corporation.
36 (2) Fifty thousand dollars ($50,000) and less than one hundred
37 fifty thousand dollars ($150,000), if the political subdivision is
38 not a school corporation.
39 (b) The board must proceed under the following provisions:
40 (1) The board shall invite quotes from at least three (3) persons
41 known to deal in the class of work proposed to be done by mailing
42 them a notice stating that plans and specifications are on file in a
HB 1198—LS 7246/DI 137 6
1 specified office. The notice must be mailed not less than seven (7)
2 days before the time fixed for receiving quotes.
3 (2) The board may not require a person to submit a quote before
4 the meeting at which quotes are to be received. The meeting for
5 receiving quotes must be open to the public. All quotes received
6 shall be opened publicly and read aloud at the time and place
7 designated and not before.
8 (3) The board shall award the contract for the public work to the
9 lowest responsible and responsive quoter.
10 (4) The board may reject all quotes submitted.
11 SECTION 4. IC 36-1-12-4.9, AS AMENDED BY P.L.236-2023,
12 SECTION 161, IS AMENDED TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2025]: Sec. 4.9. (a) This section applies to a
14 public work for the routine operation, routine repair, or routine
15 maintenance of existing structures, buildings, or real property if the
16 cost of the public work is estimated to be less than the following:
17 (1) three hundred thousand dollars ($300,000). if the political
18 subdivision is a school corporation.
19 (2) One hundred fifty thousand dollars ($150,000), if the political
20 subdivision is not a school corporation.
21 (b) The board may award a contract for a public work described in
22 subsection (a) in the manner provided in IC 5-22.
23 SECTION 5. IC 36-1-12-6, AS AMENDED BY P.L.127-2017,
24 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2025]: Sec. 6. (a) Except as provided in subsections (b) and
26 (c), through (d), the board shall award the contract and shall provide
27 the successful bidder with written notice to proceed within sixty (60)
28 days after the date on which bids are opened.
29 (b) If general obligation bonds are to be sold to finance the
30 construction that is the subject of the bid, the board shall allow the
31 bidder ninety (90) days.
32 (c) If revenue bonds are to be issued, when approved by the utility
33 regulatory commission, or if special taxing district, special benefit, or
34 revenue bonds are to be issued and sold to finance the construction, the
35 board shall allow the bidder one hundred fifty (150) days.
36 (d) If a federal grant is to be issued to fund a portion of the
37 construction of the subject of the bid, the board shall allow the
38 bidder ninety (90) days.
39 (d) (e) A failure to award and execute the contract and to issue
40 notice within the time required by this section entitles the successful
41 bidder to:
42 (1) reject the contract and withdraw the successful bidder's bid
HB 1198—LS 7246/DI 137 7
1 without prejudice; or
2 (2) extend the time to award the contract and provide notice to
3 proceed at an agreed later date.
4 If the successful bidder elects to reject the contract and withdraw the
5 bidder's bid, notice of that election must be given to the board in
6 writing within fifteen (15) days of the sixty (60) day expiration date or
7 any other extension date.
8 SECTION 6. IC 36-1-12-7 IS AMENDED TO READ AS
9 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) This section
10 does not apply to public work that:
11 (1) is considered routine maintenance or upkeep; or
12 (2) does not require a building permit issued by a city, town,
13 or county.
14 (b) Public work performed or contracted for on a public building,
15 the cost of which is more than one hundred thousand dollars
16 ($100,000), may be undertaken by the board only in accordance with
17 plans and specifications approved by an architect or engineer licensed
18 under IC 25-4 or IC 25-31 if the scope of the public work requires a
19 design release under IC 22-15-3.
20 SECTION 7. IC 36-1-12-24, AS AMENDED BY P.L.236-2023,
21 SECTION 162, IS AMENDED TO READ AS FOLLOWS
22 [EFFECTIVE JULY 1, 2025]: Sec. 24. (a) As used in this section,
23 "contractor" includes a subcontractor of a contractor.
24 (b) IC 4-13-18, regarding drug testing of employees of public works
25 contractors, applies to a public works contract if the estimated cost of
26 the public works contract is at least the following:
27 (1) three hundred thousand dollars ($300,000). if the contract is
28 for a public school corporation.
29 (2) One hundred fifty thousand dollars ($150,000), if the contract
30 is for a political subdivision other than a school corporation.
31 (c) An employee drug testing program submitted to the board under
32 this section must have been effective and applied at the time of the
33 solicitation for bids.
34 (d) A contractor who has previously filed a copy of the contractor's
35 employee drug testing program with the board in the current calendar
36 year or within the previous two (2) calendar years satisfies the
37 requirement for submitting an employee drug testing program, unless
38 the employee drug testing program has been revised.
HB 1198—LS 7246/DI 137 8
COMMITTEE REPORT
Mr. Speaker: Your Committee on Employment, Labor and Pensions,
to which was referred House Bill 1198, has had the same under
consideration and begs leave to report the same back to the House with
the recommendation that said bill be amended as follows:
Page 3, after line 6, begin a new paragraph and insert:
"SECTION 2. IC 36-1-12-4, AS AMENDED BY P.L.236-2023,
SECTION 159, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 4. (a) This section applies whenever
the cost of a public work project will be at least the following:
(1) Three hundred thousand dollars ($300,000), if the political
subdivision is a school corporation, a board of aviation
commissioners established under IC 8-22-2, or an airport
authority established under IC 8-22-3.
(2) One hundred fifty thousand dollars ($150,000), if the political
subdivision is not a school corporation, a board of aviation
commissioners established under IC 8-22-2, or an airport
authority established under IC 8-22-3.
(b) The board must comply with the following procedure:
(1) The board shall prepare general plans and specifications
describing the kind of public work required, but shall avoid
specifications which might unduly limit competition. If the
project involves the resurfacing (as defined by IC 8-14-2-1) of a
road, street, or bridge, the specifications must show how the
weight or volume of the materials will be accurately measured
and verified.
(2) The board shall file the plans and specifications in a place
reasonably accessible to the public, which shall be specified in the
notice required by subdivision (3).
(3) Upon the filing of the plans and specifications, the board shall
publish notice in accordance with IC 5-3-1 calling for sealed
proposals for the public work needed. If the board receives
electronic bids as set forth in subsection (d), the board shall also
provide electronic access to the notice of the bid solicitation
through the computer gateway administered under
IC 4-13.1-2-2(a)(6) by the office of technology.
(4) The notice must specify the place where the plans and
specifications are on file and the date fixed for receiving bids.
(5) The period of time between the date of the first publication
and the date of receiving bids shall be governed by the size of the
contemplated project in the discretion of the board. The period of
HB 1198—LS 7246/DI 137 9
time between the date of the first publication and receiving bids
may not be more than:
(A) six (6) weeks if the estimated cost of the public works
project is less than twenty-five million dollars ($25,000,000);
and
(B) ten (10) weeks if the estimated cost of the public works
project is at least twenty-five million dollars ($25,000,000).
(6) The board shall require the bidder to submit a financial
statement, a statement of experience, a proposed plan or plans for
performing the public work, and the equipment that the bidder has
available for the performance of the public work. The statement
shall be submitted on forms prescribed by the state board of
accounts.
(7) The board may not require a bidder to submit a bid before the
meeting at which bids are to be received. The meeting for
receiving bids must be open to the public. All bids received shall
be opened publicly and read aloud at the time and place
designated and not before. Notwithstanding any other law, bids
may be opened after the time designated if both of the following
apply:
(A) The board makes a written determination that it is in the
best interest of the board to delay the opening.
(B) The day, time, and place of the rescheduled opening are
announced at the day, time, and place of the originally
scheduled opening.
(8) Except as provided in subsection (c), the board shall:
(A) award the contract for public work or improvements to the
lowest responsible and responsive bidder; or
(B) reject all bids submitted.
(9) If the board awards the contract to a bidder other than the
lowest bidder, the board must state in the minutes or memoranda,
at the time the award is made, the factors used to determine which
bidder is the lowest responsible and responsive bidder and to
justify the award. The board shall keep a copy of the minutes or
memoranda available for public inspection.
(10) In determining whether a bidder is responsive, the board may
consider the following factors:
(A) Whether the bidder has submitted a bid or quote that
conforms in all material respects to the specifications.
(B) Whether the bidder has submitted a bid that complies
specifically with the invitation to bid and the instructions to
bidders.
HB 1198—LS 7246/DI 137 10
(C) Whether the bidder has complied with all applicable
statutes, ordinances, resolutions, or rules pertaining to the
award of a public contract.
(11) In determining whether a bidder is a responsible bidder, the
board may consider the following factors:
(A) The ability and capacity of the bidder to perform the work.
(B) The integrity, character, and reputation of the bidder.
(C) The competence and experience of the bidder.
(12) The board shall require the bidder to submit an affidavit:
(A) that the bidder has not entered into a combination or
agreement:
(i) relative to the price to be bid by a person;
(ii) to prevent a person from bidding; or
(iii) to induce a person to refrain from bidding; and
(B) that the bidder's bid is made without reference to any other
bid.
(c) Notwithstanding subsection (b)(8), a county may award sand,
gravel, asphalt paving materials, or crushed stone contracts to more
than one (1) responsible and responsive bidder if the specifications
allow for bids to be based upon service to specific geographic areas and
the contracts are awarded by geographic area. The geographic areas do
not need to be described in the specifications.
(d) Notwithstanding subsection (b), a board may receive electronic
bids for the public work if:
(1) the solicitation for bids indicates the procedure for
transmitting the electronic bid to the board; and
(2) the board receives the bid on a facsimile machine or system
with a security feature that protects the content of an electronic
bid with the same degree of protection as the content of a bid that
is not transmitted by a facsimile machine.
(e) A board may select a vendor to provide an electronic platform
to accommodate the electronic bidding process.
SECTION 3. IC 36-1-12-4.7, AS AMENDED BY P.L.236-2023,
SECTION 160, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 4.7. (a) This section applies
whenever a public work project is estimated to cost at least the
following:
(1) Fifty thousand dollars ($50,000) and less than three hundred
thousand dollars ($300,000), if the political subdivision is a
school corporation, a board of aviation commissioners
established under IC 8-22-2, or an airport authority
established under IC 8-22-3.
HB 1198—LS 7246/DI 137 11
(2) Fifty thousand dollars ($50,000) and less than one hundred
fifty thousand dollars ($150,000), if the political subdivision is
not a school corporation, a board of aviation commissioners
established under IC 8-22-2, or an airport authority
established under IC 8-22-3.
(b) The board must proceed under the following provisions:
(1) The board shall invite quotes from at least three (3) persons
known to deal in the class of work proposed to be done by mailing
them a notice stating that plans and specifications are on file in a
specified office. The notice must be mailed not less than seven (7)
days before the time fixed for receiving quotes.
(2) The board may not require a person to submit a quote before
the meeting at which quotes are to be received. The meeting for
receiving quotes must be open to the public. All quotes received
shall be opened publicly and read aloud at the time and place
designated and not before.
(3) The board shall award the contract for the public work to the
lowest responsible and responsive quoter.
(4) The board may reject all quotes submitted.
SECTION 4. IC 36-1-12-4.9, AS AMENDED BY P.L.236-2023,
SECTION 161, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 4.9. (a) This section applies to a
public work for the routine operation, routine repair, or routine
maintenance of existing structures, buildings, or real property if the
cost of the public work is estimated to be less than the following:
(1) Three hundred thousand dollars ($300,000) if the political
subdivision is a school corporation, a board of aviation
commissioners established under IC 8-22-2, or an airport
authority established under IC 8-22-3.
(2) One hundred fifty thousand dollars ($150,000), if the political
subdivision is not a school corporation, a board of aviation
commissioners established under IC 8-22-2, or an airport
authority established under IC 8-22-3.
(b) The board may award a contract for a public work described in
subsection (a) in the manner provided in IC 5-22.
SECTION 5. IC 36-1-12-6, AS AMENDED BY P.L.127-2017,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. (a) Except as provided in subsections (b) and
(c), through (d), the board shall award the contract and shall provide
the successful bidder with written notice to proceed within sixty (60)
days after the date on which bids are opened.
(b) If general obligation bonds are to be sold to finance the
HB 1198—LS 7246/DI 137 12
construction that is the subject of the bid, the board shall allow the
bidder ninety (90) days.
(c) If revenue bonds are to be issued, when approved by the utility
regulatory commission, or if special taxing district, special benefit, or
revenue bonds are to be issued and sold to finance the construction, the
board shall allow the bidder one hundred fifty (150) days.
(d) If a federal grant is to be issued to fund a portion of the
construction of the subject of the bid, the board shall allow the
bidder ninety (90) days.
(d) (e) A failure to award and execute the contract and to issue
notice within the time required by this section entitles the successful
bidder to:
(1) reject the contract and withdraw the successful bidder's bid
without prejudice; or
(2) extend the time to award the contract and provide notice to
proceed at an agreed later date.
If the successful bidder elects to reject the contract and withdraw the
bidder's bid, notice of that election must be given to the board in
writing within fifteen (15) days of the sixty (60) day expiration date or
any other extension date.
SECTION 6. IC 36-1-12-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) This section
does not apply to public work that:
(1) is considered routine maintenance or upkeep; or
(2) does not require a building permit issued by a city, town,
or county.
(b) Public work performed or contracted for on a public building,
the cost of which is more than one hundred thousand dollars
($100,000), may be undertaken by the board only in accordance with
plans and specifications approved by an architect or engineer licensed
under IC 25-4 or IC 25-31 if the scope of the public work requires a
design release under IC 22-15-3.
SECTION 7. IC 36-1-12-24, AS AMENDED BY P.L.236-2023,
SECTION 162, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 24. (a) As used in this section,
"contractor" includes a subcontractor of a contractor.
(b) IC 4-13-18, regarding drug testing of employees of public works
contractors, applies to a public works contract if the estimated cost of
the public works contract is at least the following:
(1) Three hundred thousand dollars ($300,000), if the contract is
for a public school corporation, a board of aviation
commissioners established under IC 8-22-2, or an airport
HB 1198—LS 7246/DI 137 13
authority established under IC 8-22-3.
(2) One hundred fifty thousand dollars ($150,000), if the contract
is for a political subdivision other than a school corporation, a
board of aviation commissioners established under IC 8-22-2,
or an airport authority established under IC 8-22-3.
(c) An employee drug testing program submitted to the board under
this section must have been effective and applied at the time of the
solicitation for bids.
(d) A contractor who has previously filed a copy of the contractor's
employee drug testing program with the board in the current calendar
year or within the previous two (2) calendar years satisfies the
requirement for submitting an employee drug testing program, unless
the employee drug testing program has been revised.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1198 as introduced.)
VANNATTER
Committee Vote: yeas 12, nays 0.
_____
HOUSE MOTION
Mr. Speaker: I move that House Bill 1198 be amended to read as
follows:
Page 3, delete lines 7 through 42, begin a new paragraph and insert:
"SECTION 2. IC 36-1-12-4, AS AMENDED BY P.L.236-2023,
SECTION 159, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 4. (a) This section applies whenever
the cost of a public work project will be at least the following:
(1) three hundred thousand dollars ($300,000). if the political
subdivision is a school corporation.
(2) One hundred fifty thousand dollars ($150,000), if the political
subdivision is not a school corporation.
(b) The board must comply with the following procedure:
(1) The board shall prepare general plans and specifications
describing the kind of public work required, but shall avoid
specifications which might unduly limit competition. If the
project involves the resurfacing (as defined by IC 8-14-2-1) of a
HB 1198—LS 7246/DI 137 14
road, street, or bridge, the specifications must show how the
weight or volume of the materials will be accurately measured
and verified.
(2) The board shall file the plans and specifications in a place
reasonably accessible to the public, which shall be specified in the
notice required by subdivision (3).
(3) Upon the filing of the plans and specifications, the board shall
publish notice in accordance with IC 5-3-1 calling for sealed
proposals for the public work needed. If the board receives
electronic bids as set forth in subsection (d), the board shall also
provide electronic access to the notice of the bid solicitation
through the computer gateway administered under
IC 4-13.1-2-2(a)(6) by the office of technology.
(4) The notice must specify the place where the plans and
specifications are on file and the date fixed for receiving bids.
(5) The period of time between the date of the first publication
and the date of receiving bids shall be governed by the size of the
contemplated project in the discretion of the board. The period of
time between the date of the first publication and receiving bids
may not be more than:
(A) six (6) weeks if the estimated cost of the public works
project is less than twenty-five million dollars ($25,000,000);
and
(B) ten (10) weeks if the estimated cost of the public works
project is at least twenty-five million dollars ($25,000,000).
(6) The board shall require the bidder to submit a financial
statement, a statement of experience, a proposed plan or plans for
performing the public work, and the equipment that the bidder has
available for the performance of the public work. The statement
shall be submitted on forms prescribed by the state board of
accounts.
(7) The board may not require a bidder to submit a bid before the
meeting at which bids are to be received. The meeting for
receiving bids must be open to the public. All bids received shall
be opened publicly and read aloud at the time and place
designated and not before. Notwithstanding any other law, bids
may be opened after the time designated if both of the following
apply:
(A) The board makes a written determination that it is in the
best interest of the board to delay the opening.
(B) The day, time, and place of the rescheduled opening are
announced at the day, time, and place of the originally
HB 1198—LS 7246/DI 137 15
scheduled opening.
(8) Except as provided in subsection (c), the board shall:
(A) award the contract for public work or improvements to the
lowest responsible and responsive bidder; or
(B) reject all bids submitted.
(9) If the board awards the contract to a bidder other than the
lowest bidder, the board must state in the minutes or memoranda,
at the time the award is made, the factors used to determine which
bidder is the lowest responsible and responsive bidder and to
justify the award. The board shall keep a copy of the minutes or
memoranda available for public inspection.
(10) In determining whether a bidder is responsive, the board may
consider the following factors:
(A) Whether the bidder has submitted a bid or quote that
conforms in all material respects to the specifications.
(B) Whether the bidder has submitted a bid that complies
specifically with the invitation to bid and the instructions to
bidders.
(C) Whether the bidder has complied with all applicable
statutes, ordinances, resolutions, or rules pertaining to the
award of a public contract.
(11) In determining whether a bidder is a responsible bidder, the
board may consider the following factors:
(A) The ability and capacity of the bidder to perform the work.
(B) The integrity, character, and reputation of the bidder.
(C) The competence and experience of the bidder.
(12) The board shall require the bidder to submit an affidavit:
(A) that the bidder has not entered into a combination or
agreement:
(i) relative to the price to be bid by a person;
(ii) to prevent a person from bidding; or
(iii) to induce a person to refrain from bidding; and
(B) that the bidder's bid is made without reference to any other
bid.
(c) Notwithstanding subsection (b)(8), a county may award sand,
gravel, asphalt paving materials, or crushed stone contracts to more
than one (1) responsible and responsive bidder if the specifications
allow for bids to be based upon service to specific geographic areas and
the contracts are awarded by geographic area. The geographic areas do
not need to be described in the specifications.
(d) Notwithstanding subsection (b), a board may receive electronic
bids for the public work if:
HB 1198—LS 7246/DI 137 16
(1) the solicitation for bids indicates the procedure for
transmitting the electronic bid to the board; and
(2) the board receives the bid on a facsimile machine or system
with a security feature that protects the content of an electronic
bid with the same degree of protection as the content of a bid that
is not transmitted by a facsimile machine.
(e) A board may select a vendor to provide an electronic platform
to accommodate the electronic bidding process.
SECTION 3. IC 36-1-12-4.7, AS AMENDED BY P.L.236-2023,
SECTION 160, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 4.7. (a) This section applies
whenever a public work project is estimated to cost at least the
following:
(1) fifty thousand dollars ($50,000) and less than three hundred
thousand dollars ($300,000). if the political subdivision is a
school corporation.
(2) Fifty thousand dollars ($50,000) and less than one hundred
fifty thousand dollars ($150,000), if the political subdivision is
not a school corporation.
(b) The board must proceed under the following provisions:
(1) The board shall invite quotes from at least three (3) persons
known to deal in the class of work proposed to be done by mailing
them a notice stating that plans and specifications are on file in a
specified office. The notice must be mailed not less than seven (7)
days before the time fixed for receiving quotes.
(2) The board may not require a person to submit a quote before
the meeting at which quotes are to be received. The meeting for
receiving quotes must be open to the public. All quotes received
shall be opened publicly and read aloud at the time and place
designated and not before.
(3) The board shall award the contract for the public work to the
lowest responsible and responsive quoter.
(4) The board may reject all quotes submitted.
SECTION 4. IC 36-1-12-4.9, AS AMENDED BY P.L.236-2023,
SECTION 161, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 4.9. (a) This section applies to a
public work for the routine operation, routine repair, or routine
maintenance of existing structures, buildings, or real property if the
cost of the public work is estimated to be less than the following:
(1) three hundred thousand dollars ($300,000). if the political
subdivision is a school corporation.
(2) One hundred fifty thousand dollars ($150,000), if the political
HB 1198—LS 7246/DI 137 17
subdivision is not a school corporation.
(b) The board may award a contract for a public work described in
subsection (a) in the manner provided in IC 5-22.".
Delete pages 4 through 5.
Page 6, delete lines 1 through 34.
Page 7, delete lines 32 through 42, begin a new paragraph and
insert:
"SECTION 7. IC 36-1-12-24, AS AMENDED BY P.L.236-2023,
SECTION 162, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 24. (a) As used in this section,
"contractor" includes a subcontractor of a contractor.
(b) IC 4-13-18, regarding drug testing of employees of public works
contractors, applies to a public works contract if the estimated cost of
the public works contract is at least the following:
(1) three hundred thousand dollars ($300,000). if the contract is
for a public school corporation.
(2) One hundred fifty thousand dollars ($150,000), if the contract
is for a political subdivision other than a school corporation.
(c) An employee drug testing program submitted to the board under
this section must have been effective and applied at the time of the
solicitation for bids.
(d) A contractor who has previously filed a copy of the contractor's
employee drug testing program with the board in the current calendar
year or within the previous two (2) calendar years satisfies the
requirement for submitting an employee drug testing program, unless
the employee drug testing program has been revised.".
Delete page 8.
(Reference is to HB 1198 as printed January 30, 2025.)
TESHKA
HB 1198—LS 7246/DI 137