Indiana 2025 Regular Session

Indiana House Bill HB1198 Compare Versions

OldNewDifferences
1+*EH1198.1*
2+March 7, 2025
3+ENGROSSED
4+HOUSE BILL No. 1198
5+_____
6+DIGEST OF HB 1198 (Updated March 5, 2025 11:20 am - DI 153)
7+Citations Affected: IC 36-1.
8+Synopsis: Local public work projects. Changes the amount of a public
9+work project that a board may perform using its own workforce,
10+without awarding a contract, from an estimated cost of less than
11+$250,000 to an estimated cost of less than $375,000, adjusted annually
12+to account for inflation. Provides that the department of local
13+government finance shall annually publish the adjusted cost estimate
14+threshold on the department's website. Removes the distinction
15+between a political subdivision that is a school corporation and a
16+political subdivision that is not a school corporation for the cost of a
17+public work project that is not subject to certain procedures. Provides
18+that if a federal grant is to be issued to fund a portion of the
19+construction on a public work project, the successful bidder has 90
20+days to proceed with the contract. Provides that plans and
21+specifications approved by an architect or engineer are not required for
22+certain public work on a public building.
23+Effective: July 1, 2025.
24+Lawson, Pressel, Mayfield, Miller K
25+(SENATE SPONSORS — CRIDER, ROGERS)
26+January 8, 2025, read first time and referred to Committee on Employment, Labor and
27+Pensions.
28+January 30, 2025, amended, reported — Do Pass.
29+February 3, 2025, read second time, amended, ordered engrossed.
30+February 4, 2025, engrossed. Read third time, passed. Yeas 88, nays 2.
31+SENATE ACTION
32+February 18, 2025, read first time and referred to Committee on Pensions and Labor.
33+March 6, 2025, amended, reported favorably — Do Pass.
34+EH 1198—LS 7246/DI 137 March 7, 2025
135 First Regular Session of the 124th General Assembly (2025)
236 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
337 Constitution) is being amended, the text of the existing provision will appear in this style type,
438 additions will appear in this style type, and deletions will appear in this style type.
539 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
640 provision adopted), the text of the new provision will appear in this style type. Also, the
741 word NEW will appear in that style type in the introductory clause of each SECTION that adds
842 a new provision to the Indiana Code or the Indiana Constitution.
943 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1044 between statutes enacted by the 2024 Regular Session of the General Assembly.
11-HOUSE ENROLLED ACT No. 1198
12-AN ACT to amend the Indiana Code concerning local government.
45+ENGROSSED
46+HOUSE BILL No. 1198
47+A BILL FOR AN ACT to amend the Indiana Code concerning local
48+government.
1349 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 36-1-12-3, AS AMENDED BY P.L.114-2022,
15-SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16-JULY 1, 2025]: Sec. 3. (a) The board may purchase or lease materials
17-in the manner provided in IC 5-22 and perform any public work, by
18-means of its own workforce, without awarding a contract whenever the
19-cost of that public work project is estimated to be less than two hundred
20-fifty thousand dollars ($250,000). three hundred seventy-five
21-thousand dollars ($375,000), adjusted annually by the percentage
22-change in the Consumer Price Index for all Urban Consumers as
23-published by the United States Bureau of Labor Statistics. The
24-department of local government finance shall annually publish the
25-adjusted cost estimate threshold for the current year, determined
26-in the manner required by this subsection, on the department's
27-website. Before a board may perform any work under this section by
28-means of its own workforce, the political subdivision or agency must
29-have a group of employees on its staff who are capable of performing
30-the construction, maintenance, and repair applicable to that work. For
31-purposes of this subsection, the cost of a public work project includes:
32-(1) the actual cost of materials, labor, equipment, and rental;
33-(2) a reasonable rate for use of trucks and heavy equipment
34-owned; and
35-(3) all other expenses incidental to the performance of the project.
36-HEA 1198 — Concur 2
37-(b) This subsection applies only to a municipality or a county. The
38-workforce of a municipality or county may perform a public work
39-described in subsection (a) only if:
40-(1) the workforce, through demonstrated skills, training, or
41-expertise, is capable of performing the public work; and
42-(2) for a public work project under subsection (a) whose cost is
43-estimated to be more than one hundred thousand dollars
44-($100,000), the board:
45-(A) publishes a notice under IC 5-3-1 that:
46-(i) describes the public work that the board intends to
47-perform with its own workforce; and
48-(ii) sets forth the projected cost of each component of the
49-public work as described in subsection (a); and
50-(B) determines at a public meeting that it is in the public
51-interest to perform the public work with the board's own
52-workforce.
53-A public work project performed by a board's own workforce must be
54-inspected and accepted as complete in the same manner as a public
55-work project performed under a contract awarded after receiving bids.
56-(c) When the project involves the rental of equipment with an
57-operator furnished by the owner, or the installation or application of
58-materials by the supplier of the materials, the project is considered to
59-be a public work project and subject to this chapter. However, an
60-annual contract may be awarded for equipment rental and materials to
61-be installed or applied during a calendar or fiscal year if the proposed
62-project or projects are described in the bid specifications.
63-(d) A board of aviation commissioners or an airport authority board
64-may purchase or lease materials in the manner provided in IC 5-22 and
65-perform any public work by means of its own workforce and owned or
66-leased equipment, in the construction, maintenance, and repair of any
67-airport roadway, runway, taxiway, or aircraft parking apron whenever
68-the cost of that public work project is estimated to be less than one
69-hundred fifty thousand dollars ($150,000).
70-(e) Municipal and county hospitals must comply with this chapter
71-for all contracts for public work that are financed in whole or in part
72-with cumulative building fund revenue, as provided in section 1(c) of
73-this chapter. However, if the cost of the public work is estimated to be
74-less than fifty thousand dollars ($50,000), as reflected in the board
75-minutes, the hospital board may have the public work done without
76-receiving bids, by purchasing the materials and performing the work by
77-means of its own workforce and owned or leased equipment.
78-(f) If a public works project involves a structure, an improvement,
79-HEA 1198 — Concur 3
80-or a facility under the control of a public highway department that is
81-under the political control of a unit (as defined in IC 36-1-2-23) and
82-involved in the construction, maintenance, or repair of a public
83-highway (as defined in IC 9-25-2-4), the department may not
84-artificially divide the project to bring any part of the project under this
85-section.
86-SECTION 2. IC 36-1-12-4, AS AMENDED BY P.L.236-2023,
50+1 SECTION 1. IC 36-1-12-3, AS AMENDED BY P.L.114-2022,
51+2 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
52+3 JULY 1, 2025]: Sec. 3. (a) The board may purchase or lease materials
53+4 in the manner provided in IC 5-22 and perform any public work, by
54+5 means of its own workforce, without awarding a contract whenever the
55+6 cost of that public work project is estimated to be less than two hundred
56+7 fifty thousand dollars ($250,000). three hundred seventy-five
57+8 thousand dollars ($375,000), adjusted annually by the percentage
58+9 change in the Consumer Price Index for all Urban Consumers as
59+10 published by the United States Bureau of Labor Statistics. The
60+11 department of local government finance shall annually publish the
61+12 adjusted cost estimate threshold for the current year, determined
62+13 in the manner required by this subsection, on the department's
63+14 website. Before a board may perform any work under this section by
64+15 means of its own workforce, the political subdivision or agency must
65+16 have a group of employees on its staff who are capable of performing
66+17 the construction, maintenance, and repair applicable to that work. For
67+EH 1198—LS 7246/DI 137 2
68+1 purposes of this subsection, the cost of a public work project includes:
69+2 (1) the actual cost of materials, labor, equipment, and rental;
70+3 (2) a reasonable rate for use of trucks and heavy equipment
71+4 owned; and
72+5 (3) all other expenses incidental to the performance of the project.
73+6 (b) This subsection applies only to a municipality or a county. The
74+7 workforce of a municipality or county may perform a public work
75+8 described in subsection (a) only if:
76+9 (1) the workforce, through demonstrated skills, training, or
77+10 expertise, is capable of performing the public work; and
78+11 (2) for a public work project under subsection (a) whose cost is
79+12 estimated to be more than one hundred thousand dollars
80+13 ($100,000), the board:
81+14 (A) publishes a notice under IC 5-3-1 that:
82+15 (i) describes the public work that the board intends to
83+16 perform with its own workforce; and
84+17 (ii) sets forth the projected cost of each component of the
85+18 public work as described in subsection (a); and
86+19 (B) determines at a public meeting that it is in the public
87+20 interest to perform the public work with the board's own
88+21 workforce.
89+22 A public work project performed by a board's own workforce must be
90+23 inspected and accepted as complete in the same manner as a public
91+24 work project performed under a contract awarded after receiving bids.
92+25 (c) When the project involves the rental of equipment with an
93+26 operator furnished by the owner, or the installation or application of
94+27 materials by the supplier of the materials, the project is considered to
95+28 be a public work project and subject to this chapter. However, an
96+29 annual contract may be awarded for equipment rental and materials to
97+30 be installed or applied during a calendar or fiscal year if the proposed
98+31 project or projects are described in the bid specifications.
99+32 (d) A board of aviation commissioners or an airport authority board
100+33 may purchase or lease materials in the manner provided in IC 5-22 and
101+34 perform any public work by means of its own workforce and owned or
102+35 leased equipment, in the construction, maintenance, and repair of any
103+36 airport roadway, runway, taxiway, or aircraft parking apron whenever
104+37 the cost of that public work project is estimated to be less than one
105+38 hundred fifty thousand dollars ($150,000).
106+39 (e) Municipal and county hospitals must comply with this chapter
107+40 for all contracts for public work that are financed in whole or in part
108+41 with cumulative building fund revenue, as provided in section 1(c) of
109+42 this chapter. However, if the cost of the public work is estimated to be
110+EH 1198—LS 7246/DI 137 3
111+1 less than fifty thousand dollars ($50,000), as reflected in the board
112+2 minutes, the hospital board may have the public work done without
113+3 receiving bids, by purchasing the materials and performing the work by
114+4 means of its own workforce and owned or leased equipment.
115+5 (f) If a public works project involves a structure, an improvement,
116+6 or a facility under the control of a public highway department that is
117+7 under the political control of a unit (as defined in IC 36-1-2-23) and
118+8 involved in the construction, maintenance, or repair of a public
119+9 highway (as defined in IC 9-25-2-4), the department may not
120+10 artificially divide the project to bring any part of the project under this
121+11 section.
122+12 SECTION 2. IC 36-1-12-4, AS AMENDED BY P.L.236-2023,
123+13 SECTION 159, IS AMENDED TO READ AS FOLLOWS
124+14 [EFFECTIVE JULY 1, 2025]: Sec. 4. (a) This section applies whenever
125+15 the cost of a public work project will be at least the following:
126+16 (1) three hundred thousand dollars ($300,000). if the political
127+17 subdivision is a school corporation.
128+18 (2) One hundred fifty thousand dollars ($150,000), if the political
129+19 subdivision is not a school corporation.
130+20 (b) The board must comply with the following procedure:
131+21 (1) The board shall prepare general plans and specifications
132+22 describing the kind of public work required, but shall avoid
133+23 specifications which might unduly limit competition. If the
134+24 project involves the resurfacing (as defined by IC 8-14-2-1) of a
135+25 road, street, or bridge, the specifications must show how the
136+26 weight or volume of the materials will be accurately measured
137+27 and verified.
138+28 (2) The board shall file the plans and specifications in a place
139+29 reasonably accessible to the public, which shall be specified in the
140+30 notice required by subdivision (3).
141+31 (3) Upon the filing of the plans and specifications, the board shall
142+32 publish notice in accordance with IC 5-3-1 calling for sealed
143+33 proposals for the public work needed. If the board receives
144+34 electronic bids as set forth in subsection (d), the board shall also
145+35 provide electronic access to the notice of the bid solicitation
146+36 through the computer gateway administered under
147+37 IC 4-13.1-2-2(a)(6) by the office of technology.
148+38 (4) The notice must specify the place where the plans and
149+39 specifications are on file and the date fixed for receiving bids.
150+40 (5) The period of time between the date of the first publication
151+41 and the date of receiving bids shall be governed by the size of the
152+42 contemplated project in the discretion of the board. The period of
153+EH 1198—LS 7246/DI 137 4
154+1 time between the date of the first publication and receiving bids
155+2 may not be more than:
156+3 (A) six (6) weeks if the estimated cost of the public works
157+4 project is less than twenty-five million dollars ($25,000,000);
158+5 and
159+6 (B) ten (10) weeks if the estimated cost of the public works
160+7 project is at least twenty-five million dollars ($25,000,000).
161+8 (6) The board shall require the bidder to submit a financial
162+9 statement, a statement of experience, a proposed plan or plans for
163+10 performing the public work, and the equipment that the bidder has
164+11 available for the performance of the public work. The statement
165+12 shall be submitted on forms prescribed by the state board of
166+13 accounts.
167+14 (7) The board may not require a bidder to submit a bid before the
168+15 meeting at which bids are to be received. The meeting for
169+16 receiving bids must be open to the public. All bids received shall
170+17 be opened publicly and read aloud at the time and place
171+18 designated and not before. Notwithstanding any other law, bids
172+19 may be opened after the time designated if both of the following
173+20 apply:
174+21 (A) The board makes a written determination that it is in the
175+22 best interest of the board to delay the opening.
176+23 (B) The day, time, and place of the rescheduled opening are
177+24 announced at the day, time, and place of the originally
178+25 scheduled opening.
179+26 (8) Except as provided in subsection (c), the board shall:
180+27 (A) award the contract for public work or improvements to the
181+28 lowest responsible and responsive bidder; or
182+29 (B) reject all bids submitted.
183+30 (9) If the board awards the contract to a bidder other than the
184+31 lowest bidder, the board must state in the minutes or memoranda,
185+32 at the time the award is made, the factors used to determine which
186+33 bidder is the lowest responsible and responsive bidder and to
187+34 justify the award. The board shall keep a copy of the minutes or
188+35 memoranda available for public inspection.
189+36 (10) In determining whether a bidder is responsive, the board may
190+37 consider the following factors:
191+38 (A) Whether the bidder has submitted a bid or quote that
192+39 conforms in all material respects to the specifications.
193+40 (B) Whether the bidder has submitted a bid that complies
194+41 specifically with the invitation to bid and the instructions to
195+42 bidders.
196+EH 1198—LS 7246/DI 137 5
197+1 (C) Whether the bidder has complied with all applicable
198+2 statutes, ordinances, resolutions, or rules pertaining to the
199+3 award of a public contract.
200+4 (11) In determining whether a bidder is a responsible bidder, the
201+5 board may consider the following factors:
202+6 (A) The ability and capacity of the bidder to perform the work.
203+7 (B) The integrity, character, and reputation of the bidder.
204+8 (C) The competence and experience of the bidder.
205+9 (12) The board shall require the bidder to submit an affidavit:
206+10 (A) that the bidder has not entered into a combination or
207+11 agreement:
208+12 (i) relative to the price to be bid by a person;
209+13 (ii) to prevent a person from bidding; or
210+14 (iii) to induce a person to refrain from bidding; and
211+15 (B) that the bidder's bid is made without reference to any other
212+16 bid.
213+17 (c) Notwithstanding subsection (b)(8), a county may award sand,
214+18 gravel, asphalt paving materials, or crushed stone contracts to more
215+19 than one (1) responsible and responsive bidder if the specifications
216+20 allow for bids to be based upon service to specific geographic areas and
217+21 the contracts are awarded by geographic area. The geographic areas do
218+22 not need to be described in the specifications.
219+23 (d) Notwithstanding subsection (b), a board may receive electronic
220+24 bids for the public work if:
221+25 (1) the solicitation for bids indicates the procedure for
222+26 transmitting the electronic bid to the board; and
223+27 (2) the board receives the bid on a facsimile machine or system
224+28 with a security feature that protects the content of an electronic
225+29 bid with the same degree of protection as the content of a bid that
226+30 is not transmitted by a facsimile machine.
227+31 (e) A board may select a vendor to provide an electronic platform
228+32 to accommodate the electronic bidding process.
229+33 SECTION 3. IC 36-1-12-4.7, AS AMENDED BY P.L.236-2023,
230+34 SECTION 160, IS AMENDED TO READ AS FOLLOWS
231+35 [EFFECTIVE JULY 1, 2025]: Sec. 4.7. (a) This section applies
232+36 whenever a public work project is estimated to cost at least the
233+37 following:
234+38 (1) fifty thousand dollars ($50,000) and less than three hundred
235+39 thousand dollars ($300,000). if the political subdivision is a
236+40 school corporation.
237+41 (2) Fifty thousand dollars ($50,000) and less than one hundred
238+42 fifty thousand dollars ($150,000), if the political subdivision is
239+EH 1198—LS 7246/DI 137 6
240+1 not a school corporation.
241+2 (b) The board must proceed under the following provisions:
242+3 (1) The board shall invite quotes from at least three (3) persons
243+4 known to deal in the class of work proposed to be done by mailing
244+5 them a notice stating that plans and specifications are on file in a
245+6 specified office. The notice must be mailed not less than seven (7)
246+7 days before the time fixed for receiving quotes.
247+8 (2) The board may not require a person to submit a quote before
248+9 the meeting at which quotes are to be received. The meeting for
249+10 receiving quotes must be open to the public. All quotes received
250+11 shall be opened publicly and read aloud at the time and place
251+12 designated and not before.
252+13 (3) The board shall award the contract for the public work to the
253+14 lowest responsible and responsive quoter.
254+15 (4) The board may reject all quotes submitted.
255+16 SECTION 4. IC 36-1-12-4.9, AS AMENDED BY P.L.236-2023,
256+17 SECTION 161, IS AMENDED TO READ AS FOLLOWS
257+18 [EFFECTIVE JULY 1, 2025]: Sec. 4.9. (a) This section applies to a
258+19 public work for the routine operation, routine repair, or routine
259+20 maintenance of existing structures, buildings, or real property if the
260+21 cost of the public work is estimated to be less than the following:
261+22 (1) three hundred thousand dollars ($300,000). if the political
262+23 subdivision is a school corporation.
263+24 (2) One hundred fifty thousand dollars ($150,000), if the political
264+25 subdivision is not a school corporation.
265+26 (b) The board may award a contract for a public work described in
266+27 subsection (a) in the manner provided in IC 5-22.
267+28 SECTION 5. IC 36-1-12-6, AS AMENDED BY P.L.127-2017,
268+29 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
269+30 JULY 1, 2025]: Sec. 6. (a) Except as provided in subsections (b) and
270+31 (c), through (d), the board shall award the contract and shall provide
271+32 the successful bidder with written notice to proceed within sixty (60)
272+33 days after the date on which bids are opened.
273+34 (b) If general obligation bonds are to be sold to finance the
274+35 construction that is the subject of the bid, the board shall allow the
275+36 bidder ninety (90) days.
276+37 (c) If revenue bonds are to be issued, when approved by the utility
277+38 regulatory commission, or if special taxing district, special benefit, or
278+39 revenue bonds are to be issued and sold to finance the construction, the
279+40 board shall allow the bidder one hundred fifty (150) days.
280+41 (d) If a federal grant is to be issued to fund a portion of the
281+42 construction of the subject of the bid, the board shall allow the
282+EH 1198—LS 7246/DI 137 7
283+1 bidder ninety (90) days.
284+2 (d) (e) A failure to award and execute the contract and to issue
285+3 notice within the time required by this section entitles the successful
286+4 bidder to:
287+5 (1) reject the contract and withdraw the successful bidder's bid
288+6 without prejudice; or
289+7 (2) extend the time to award the contract and provide notice to
290+8 proceed at an agreed later date.
291+9 If the successful bidder elects to reject the contract and withdraw the
292+10 bidder's bid, notice of that election must be given to the board in
293+11 writing within fifteen (15) days of the sixty (60) day expiration date or
294+12 any other extension date.
295+13 SECTION 6. IC 36-1-12-7 IS AMENDED TO READ AS
296+14 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) This section
297+15 does not apply to public work that:
298+16 (1) is considered routine maintenance or upkeep; or
299+17 (2) does not require a building permit issued by a city, town,
300+18 or county.
301+19 (b) Public work performed or contracted for on a public building,
302+20 the cost of which is more than one hundred thousand dollars
303+21 ($100,000), may be undertaken by the board only in accordance with
304+22 plans and specifications approved by an architect or engineer licensed
305+23 under IC 25-4 or IC 25-31 if the scope of the public work requires a
306+24 design release under IC 22-15-3.
307+25 SECTION 7. IC 36-1-12-24, AS AMENDED BY P.L.236-2023,
308+26 SECTION 162, IS AMENDED TO READ AS FOLLOWS
309+27 [EFFECTIVE JULY 1, 2025]: Sec. 24. (a) As used in this section,
310+28 "contractor" includes a subcontractor of a contractor.
311+29 (b) IC 4-13-18, regarding drug testing of employees of public works
312+30 contractors, applies to a public works contract if the estimated cost of
313+31 the public works contract is at least the following:
314+32 (1) three hundred thousand dollars ($300,000). if the contract is
315+33 for a public school corporation.
316+34 (2) One hundred fifty thousand dollars ($150,000), if the contract
317+35 is for a political subdivision other than a school corporation.
318+36 (c) An employee drug testing program submitted to the board under
319+37 this section must have been effective and applied at the time of the
320+38 solicitation for bids.
321+39 (d) A contractor who has previously filed a copy of the contractor's
322+40 employee drug testing program with the board in the current calendar
323+41 year or within the previous two (2) calendar years satisfies the
324+42 requirement for submitting an employee drug testing program, unless
325+EH 1198—LS 7246/DI 137 8
326+1 the employee drug testing program has been revised.
327+EH 1198—LS 7246/DI 137 9
328+COMMITTEE REPORT
329+Mr. Speaker: Your Committee on Employment, Labor and Pensions,
330+to which was referred House Bill 1198, has had the same under
331+consideration and begs leave to report the same back to the House with
332+the recommendation that said bill be amended as follows:
333+Page 3, after line 6, begin a new paragraph and insert:
334+"SECTION 2. IC 36-1-12-4, AS AMENDED BY P.L.236-2023,
87335 SECTION 159, IS AMENDED TO READ AS FOLLOWS
88336 [EFFECTIVE JULY 1, 2025]: Sec. 4. (a) This section applies whenever
89337 the cost of a public work project will be at least the following:
90-(1) three hundred thousand dollars ($300,000). if the political
91-subdivision is a school corporation.
338+(1) Three hundred thousand dollars ($300,000), if the political
339+subdivision is a school corporation, a board of aviation
340+commissioners established under IC 8-22-2, or an airport
341+authority established under IC 8-22-3.
92342 (2) One hundred fifty thousand dollars ($150,000), if the political
93-subdivision is not a school corporation.
343+subdivision is not a school corporation, a board of aviation
344+commissioners established under IC 8-22-2, or an airport
345+authority established under IC 8-22-3.
94346 (b) The board must comply with the following procedure:
95347 (1) The board shall prepare general plans and specifications
96348 describing the kind of public work required, but shall avoid
97349 specifications which might unduly limit competition. If the
98350 project involves the resurfacing (as defined by IC 8-14-2-1) of a
99351 road, street, or bridge, the specifications must show how the
100352 weight or volume of the materials will be accurately measured
101353 and verified.
102354 (2) The board shall file the plans and specifications in a place
103355 reasonably accessible to the public, which shall be specified in the
104356 notice required by subdivision (3).
105357 (3) Upon the filing of the plans and specifications, the board shall
106358 publish notice in accordance with IC 5-3-1 calling for sealed
107359 proposals for the public work needed. If the board receives
108360 electronic bids as set forth in subsection (d), the board shall also
109361 provide electronic access to the notice of the bid solicitation
110362 through the computer gateway administered under
111363 IC 4-13.1-2-2(a)(6) by the office of technology.
112364 (4) The notice must specify the place where the plans and
113365 specifications are on file and the date fixed for receiving bids.
114366 (5) The period of time between the date of the first publication
115367 and the date of receiving bids shall be governed by the size of the
116368 contemplated project in the discretion of the board. The period of
369+EH 1198—LS 7246/DI 137 10
117370 time between the date of the first publication and receiving bids
118371 may not be more than:
119372 (A) six (6) weeks if the estimated cost of the public works
120373 project is less than twenty-five million dollars ($25,000,000);
121374 and
122-HEA 1198 — Concur 4
123375 (B) ten (10) weeks if the estimated cost of the public works
124376 project is at least twenty-five million dollars ($25,000,000).
125377 (6) The board shall require the bidder to submit a financial
126378 statement, a statement of experience, a proposed plan or plans for
127379 performing the public work, and the equipment that the bidder has
128380 available for the performance of the public work. The statement
129381 shall be submitted on forms prescribed by the state board of
130382 accounts.
131383 (7) The board may not require a bidder to submit a bid before the
132384 meeting at which bids are to be received. The meeting for
133385 receiving bids must be open to the public. All bids received shall
134386 be opened publicly and read aloud at the time and place
135387 designated and not before. Notwithstanding any other law, bids
136388 may be opened after the time designated if both of the following
137389 apply:
138390 (A) The board makes a written determination that it is in the
139391 best interest of the board to delay the opening.
140392 (B) The day, time, and place of the rescheduled opening are
141393 announced at the day, time, and place of the originally
142394 scheduled opening.
143395 (8) Except as provided in subsection (c), the board shall:
144396 (A) award the contract for public work or improvements to the
145397 lowest responsible and responsive bidder; or
146398 (B) reject all bids submitted.
147399 (9) If the board awards the contract to a bidder other than the
148400 lowest bidder, the board must state in the minutes or memoranda,
149401 at the time the award is made, the factors used to determine which
150402 bidder is the lowest responsible and responsive bidder and to
151403 justify the award. The board shall keep a copy of the minutes or
152404 memoranda available for public inspection.
153405 (10) In determining whether a bidder is responsive, the board may
154406 consider the following factors:
155407 (A) Whether the bidder has submitted a bid or quote that
156408 conforms in all material respects to the specifications.
157409 (B) Whether the bidder has submitted a bid that complies
158410 specifically with the invitation to bid and the instructions to
159411 bidders.
412+EH 1198—LS 7246/DI 137 11
160413 (C) Whether the bidder has complied with all applicable
161414 statutes, ordinances, resolutions, or rules pertaining to the
162415 award of a public contract.
163416 (11) In determining whether a bidder is a responsible bidder, the
164417 board may consider the following factors:
165-HEA 1198 — Concur 5
166418 (A) The ability and capacity of the bidder to perform the work.
167419 (B) The integrity, character, and reputation of the bidder.
168420 (C) The competence and experience of the bidder.
169421 (12) The board shall require the bidder to submit an affidavit:
170422 (A) that the bidder has not entered into a combination or
171423 agreement:
172424 (i) relative to the price to be bid by a person;
173425 (ii) to prevent a person from bidding; or
174426 (iii) to induce a person to refrain from bidding; and
175427 (B) that the bidder's bid is made without reference to any other
176428 bid.
177429 (c) Notwithstanding subsection (b)(8), a county may award sand,
178430 gravel, asphalt paving materials, or crushed stone contracts to more
179431 than one (1) responsible and responsive bidder if the specifications
180432 allow for bids to be based upon service to specific geographic areas and
181433 the contracts are awarded by geographic area. The geographic areas do
182434 not need to be described in the specifications.
183435 (d) Notwithstanding subsection (b), a board may receive electronic
184436 bids for the public work if:
185437 (1) the solicitation for bids indicates the procedure for
186438 transmitting the electronic bid to the board; and
187439 (2) the board receives the bid on a facsimile machine or system
188440 with a security feature that protects the content of an electronic
189441 bid with the same degree of protection as the content of a bid that
190442 is not transmitted by a facsimile machine.
191443 (e) A board may select a vendor to provide an electronic platform
192444 to accommodate the electronic bidding process.
193445 SECTION 3. IC 36-1-12-4.7, AS AMENDED BY P.L.236-2023,
194446 SECTION 160, IS AMENDED TO READ AS FOLLOWS
195447 [EFFECTIVE JULY 1, 2025]: Sec. 4.7. (a) This section applies
196448 whenever a public work project is estimated to cost at least the
197449 following:
198450 (1) Fifty thousand dollars ($50,000) and less than three hundred
199-thousand dollars ($300,000). if the political subdivision is a
200-school corporation.
451+thousand dollars ($300,000), if the political subdivision is a
452+school corporation, a board of aviation commissioners
453+established under IC 8-22-2, or an airport authority
454+established under IC 8-22-3.
455+EH 1198—LS 7246/DI 137 12
201456 (2) Fifty thousand dollars ($50,000) and less than one hundred
202457 fifty thousand dollars ($150,000), if the political subdivision is
203-not a school corporation.
458+not a school corporation, a board of aviation commissioners
459+established under IC 8-22-2, or an airport authority
460+established under IC 8-22-3.
204461 (b) The board must proceed under the following provisions:
205462 (1) The board shall invite quotes from at least three (3) persons
206463 known to deal in the class of work proposed to be done by mailing
207464 them a notice stating that plans and specifications are on file in a
208-HEA 1198 — Concur 6
209465 specified office. The notice must be mailed not less than seven (7)
210466 days before the time fixed for receiving quotes.
211467 (2) The board may not require a person to submit a quote before
212468 the meeting at which quotes are to be received. The meeting for
213469 receiving quotes must be open to the public. All quotes received
214470 shall be opened publicly and read aloud at the time and place
215471 designated and not before.
216472 (3) The board shall award the contract for the public work to the
217473 lowest responsible and responsive quoter.
218474 (4) The board may reject all quotes submitted.
219475 SECTION 4. IC 36-1-12-4.9, AS AMENDED BY P.L.236-2023,
220476 SECTION 161, IS AMENDED TO READ AS FOLLOWS
221477 [EFFECTIVE JULY 1, 2025]: Sec. 4.9. (a) This section applies to a
222478 public work for the routine operation, routine repair, or routine
223479 maintenance of existing structures, buildings, or real property if the
224480 cost of the public work is estimated to be less than the following:
225-(1) three hundred thousand dollars ($300,000). if the political
226-subdivision is a school corporation.
481+(1) Three hundred thousand dollars ($300,000) if the political
482+subdivision is a school corporation, a board of aviation
483+commissioners established under IC 8-22-2, or an airport
484+authority established under IC 8-22-3.
227485 (2) One hundred fifty thousand dollars ($150,000), if the political
228-subdivision is not a school corporation.
486+subdivision is not a school corporation, a board of aviation
487+commissioners established under IC 8-22-2, or an airport
488+authority established under IC 8-22-3.
229489 (b) The board may award a contract for a public work described in
230490 subsection (a) in the manner provided in IC 5-22.
231491 SECTION 5. IC 36-1-12-6, AS AMENDED BY P.L.127-2017,
232492 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
233493 JULY 1, 2025]: Sec. 6. (a) Except as provided in subsections (b) and
234494 (c), through (d), the board shall award the contract and shall provide
235495 the successful bidder with written notice to proceed within sixty (60)
236496 days after the date on which bids are opened.
237497 (b) If general obligation bonds are to be sold to finance the
498+EH 1198—LS 7246/DI 137 13
238499 construction that is the subject of the bid, the board shall allow the
239500 bidder ninety (90) days.
240501 (c) If revenue bonds are to be issued, when approved by the utility
241502 regulatory commission, or if special taxing district, special benefit, or
242503 revenue bonds are to be issued and sold to finance the construction, the
243504 board shall allow the bidder one hundred fifty (150) days.
244505 (d) If a federal grant is to be issued to fund a portion of the
245506 construction of the subject of the bid, the board shall allow the
246507 bidder ninety (90) days.
247508 (d) (e) A failure to award and execute the contract and to issue
248509 notice within the time required by this section entitles the successful
249510 bidder to:
250511 (1) reject the contract and withdraw the successful bidder's bid
251-HEA 1198 — Concur 7
252512 without prejudice; or
253513 (2) extend the time to award the contract and provide notice to
254514 proceed at an agreed later date.
255515 If the successful bidder elects to reject the contract and withdraw the
256516 bidder's bid, notice of that election must be given to the board in
257517 writing within fifteen (15) days of the sixty (60) day expiration date or
258518 any other extension date.
259519 SECTION 6. IC 36-1-12-7 IS AMENDED TO READ AS
260520 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) This section
261521 does not apply to public work that:
262522 (1) is considered routine maintenance or upkeep; or
263523 (2) does not require a building permit issued by a city, town,
264524 or county.
265525 (b) Public work performed or contracted for on a public building,
266526 the cost of which is more than one hundred thousand dollars
267527 ($100,000), may be undertaken by the board only in accordance with
268528 plans and specifications approved by an architect or engineer licensed
269529 under IC 25-4 or IC 25-31 if the scope of the public work requires a
270530 design release under IC 22-15-3.
271531 SECTION 7. IC 36-1-12-24, AS AMENDED BY P.L.236-2023,
272532 SECTION 162, IS AMENDED TO READ AS FOLLOWS
273533 [EFFECTIVE JULY 1, 2025]: Sec. 24. (a) As used in this section,
274534 "contractor" includes a subcontractor of a contractor.
275535 (b) IC 4-13-18, regarding drug testing of employees of public works
276536 contractors, applies to a public works contract if the estimated cost of
277537 the public works contract is at least the following:
538+(1) Three hundred thousand dollars ($300,000), if the contract is
539+for a public school corporation, a board of aviation
540+commissioners established under IC 8-22-2, or an airport
541+EH 1198—LS 7246/DI 137 14
542+authority established under IC 8-22-3.
543+(2) One hundred fifty thousand dollars ($150,000), if the contract
544+is for a political subdivision other than a school corporation, a
545+board of aviation commissioners established under IC 8-22-2,
546+or an airport authority established under IC 8-22-3.
547+(c) An employee drug testing program submitted to the board under
548+this section must have been effective and applied at the time of the
549+solicitation for bids.
550+(d) A contractor who has previously filed a copy of the contractor's
551+employee drug testing program with the board in the current calendar
552+year or within the previous two (2) calendar years satisfies the
553+requirement for submitting an employee drug testing program, unless
554+the employee drug testing program has been revised.".
555+Renumber all SECTIONS consecutively.
556+and when so amended that said bill do pass.
557+(Reference is to HB 1198 as introduced.)
558+VANNATTER
559+Committee Vote: yeas 12, nays 0.
560+_____
561+HOUSE MOTION
562+Mr. Speaker: I move that House Bill 1198 be amended to read as
563+follows:
564+Page 3, delete lines 7 through 42, begin a new paragraph and insert:
565+"SECTION 2. IC 36-1-12-4, AS AMENDED BY P.L.236-2023,
566+SECTION 159, IS AMENDED TO READ AS FOLLOWS
567+[EFFECTIVE JULY 1, 2025]: Sec. 4. (a) This section applies whenever
568+the cost of a public work project will be at least the following:
569+(1) three hundred thousand dollars ($300,000). if the political
570+subdivision is a school corporation.
571+(2) One hundred fifty thousand dollars ($150,000), if the political
572+subdivision is not a school corporation.
573+(b) The board must comply with the following procedure:
574+(1) The board shall prepare general plans and specifications
575+describing the kind of public work required, but shall avoid
576+specifications which might unduly limit competition. If the
577+project involves the resurfacing (as defined by IC 8-14-2-1) of a
578+EH 1198—LS 7246/DI 137 15
579+road, street, or bridge, the specifications must show how the
580+weight or volume of the materials will be accurately measured
581+and verified.
582+(2) The board shall file the plans and specifications in a place
583+reasonably accessible to the public, which shall be specified in the
584+notice required by subdivision (3).
585+(3) Upon the filing of the plans and specifications, the board shall
586+publish notice in accordance with IC 5-3-1 calling for sealed
587+proposals for the public work needed. If the board receives
588+electronic bids as set forth in subsection (d), the board shall also
589+provide electronic access to the notice of the bid solicitation
590+through the computer gateway administered under
591+IC 4-13.1-2-2(a)(6) by the office of technology.
592+(4) The notice must specify the place where the plans and
593+specifications are on file and the date fixed for receiving bids.
594+(5) The period of time between the date of the first publication
595+and the date of receiving bids shall be governed by the size of the
596+contemplated project in the discretion of the board. The period of
597+time between the date of the first publication and receiving bids
598+may not be more than:
599+(A) six (6) weeks if the estimated cost of the public works
600+project is less than twenty-five million dollars ($25,000,000);
601+and
602+(B) ten (10) weeks if the estimated cost of the public works
603+project is at least twenty-five million dollars ($25,000,000).
604+(6) The board shall require the bidder to submit a financial
605+statement, a statement of experience, a proposed plan or plans for
606+performing the public work, and the equipment that the bidder has
607+available for the performance of the public work. The statement
608+shall be submitted on forms prescribed by the state board of
609+accounts.
610+(7) The board may not require a bidder to submit a bid before the
611+meeting at which bids are to be received. The meeting for
612+receiving bids must be open to the public. All bids received shall
613+be opened publicly and read aloud at the time and place
614+designated and not before. Notwithstanding any other law, bids
615+may be opened after the time designated if both of the following
616+apply:
617+(A) The board makes a written determination that it is in the
618+best interest of the board to delay the opening.
619+(B) The day, time, and place of the rescheduled opening are
620+announced at the day, time, and place of the originally
621+EH 1198—LS 7246/DI 137 16
622+scheduled opening.
623+(8) Except as provided in subsection (c), the board shall:
624+(A) award the contract for public work or improvements to the
625+lowest responsible and responsive bidder; or
626+(B) reject all bids submitted.
627+(9) If the board awards the contract to a bidder other than the
628+lowest bidder, the board must state in the minutes or memoranda,
629+at the time the award is made, the factors used to determine which
630+bidder is the lowest responsible and responsive bidder and to
631+justify the award. The board shall keep a copy of the minutes or
632+memoranda available for public inspection.
633+(10) In determining whether a bidder is responsive, the board may
634+consider the following factors:
635+(A) Whether the bidder has submitted a bid or quote that
636+conforms in all material respects to the specifications.
637+(B) Whether the bidder has submitted a bid that complies
638+specifically with the invitation to bid and the instructions to
639+bidders.
640+(C) Whether the bidder has complied with all applicable
641+statutes, ordinances, resolutions, or rules pertaining to the
642+award of a public contract.
643+(11) In determining whether a bidder is a responsible bidder, the
644+board may consider the following factors:
645+(A) The ability and capacity of the bidder to perform the work.
646+(B) The integrity, character, and reputation of the bidder.
647+(C) The competence and experience of the bidder.
648+(12) The board shall require the bidder to submit an affidavit:
649+(A) that the bidder has not entered into a combination or
650+agreement:
651+(i) relative to the price to be bid by a person;
652+(ii) to prevent a person from bidding; or
653+(iii) to induce a person to refrain from bidding; and
654+(B) that the bidder's bid is made without reference to any other
655+bid.
656+(c) Notwithstanding subsection (b)(8), a county may award sand,
657+gravel, asphalt paving materials, or crushed stone contracts to more
658+than one (1) responsible and responsive bidder if the specifications
659+allow for bids to be based upon service to specific geographic areas and
660+the contracts are awarded by geographic area. The geographic areas do
661+not need to be described in the specifications.
662+(d) Notwithstanding subsection (b), a board may receive electronic
663+bids for the public work if:
664+EH 1198—LS 7246/DI 137 17
665+(1) the solicitation for bids indicates the procedure for
666+transmitting the electronic bid to the board; and
667+(2) the board receives the bid on a facsimile machine or system
668+with a security feature that protects the content of an electronic
669+bid with the same degree of protection as the content of a bid that
670+is not transmitted by a facsimile machine.
671+(e) A board may select a vendor to provide an electronic platform
672+to accommodate the electronic bidding process.
673+SECTION 3. IC 36-1-12-4.7, AS AMENDED BY P.L.236-2023,
674+SECTION 160, IS AMENDED TO READ AS FOLLOWS
675+[EFFECTIVE JULY 1, 2025]: Sec. 4.7. (a) This section applies
676+whenever a public work project is estimated to cost at least the
677+following:
678+(1) fifty thousand dollars ($50,000) and less than three hundred
679+thousand dollars ($300,000). if the political subdivision is a
680+school corporation.
681+(2) Fifty thousand dollars ($50,000) and less than one hundred
682+fifty thousand dollars ($150,000), if the political subdivision is
683+not a school corporation.
684+(b) The board must proceed under the following provisions:
685+(1) The board shall invite quotes from at least three (3) persons
686+known to deal in the class of work proposed to be done by mailing
687+them a notice stating that plans and specifications are on file in a
688+specified office. The notice must be mailed not less than seven (7)
689+days before the time fixed for receiving quotes.
690+(2) The board may not require a person to submit a quote before
691+the meeting at which quotes are to be received. The meeting for
692+receiving quotes must be open to the public. All quotes received
693+shall be opened publicly and read aloud at the time and place
694+designated and not before.
695+(3) The board shall award the contract for the public work to the
696+lowest responsible and responsive quoter.
697+(4) The board may reject all quotes submitted.
698+SECTION 4. IC 36-1-12-4.9, AS AMENDED BY P.L.236-2023,
699+SECTION 161, IS AMENDED TO READ AS FOLLOWS
700+[EFFECTIVE JULY 1, 2025]: Sec. 4.9. (a) This section applies to a
701+public work for the routine operation, routine repair, or routine
702+maintenance of existing structures, buildings, or real property if the
703+cost of the public work is estimated to be less than the following:
704+(1) three hundred thousand dollars ($300,000). if the political
705+subdivision is a school corporation.
706+(2) One hundred fifty thousand dollars ($150,000), if the political
707+EH 1198—LS 7246/DI 137 18
708+subdivision is not a school corporation.
709+(b) The board may award a contract for a public work described in
710+subsection (a) in the manner provided in IC 5-22.".
711+Delete pages 4 through 5.
712+Page 6, delete lines 1 through 34.
713+Page 7, delete lines 32 through 42, begin a new paragraph and
714+insert:
715+"SECTION 7. IC 36-1-12-24, AS AMENDED BY P.L.236-2023,
716+SECTION 162, IS AMENDED TO READ AS FOLLOWS
717+[EFFECTIVE JULY 1, 2025]: Sec. 24. (a) As used in this section,
718+"contractor" includes a subcontractor of a contractor.
719+(b) IC 4-13-18, regarding drug testing of employees of public works
720+contractors, applies to a public works contract if the estimated cost of
721+the public works contract is at least the following:
278722 (1) three hundred thousand dollars ($300,000). if the contract is
279723 for a public school corporation.
280724 (2) One hundred fifty thousand dollars ($150,000), if the contract
281725 is for a political subdivision other than a school corporation.
282726 (c) An employee drug testing program submitted to the board under
283727 this section must have been effective and applied at the time of the
284728 solicitation for bids.
285729 (d) A contractor who has previously filed a copy of the contractor's
286730 employee drug testing program with the board in the current calendar
287731 year or within the previous two (2) calendar years satisfies the
288732 requirement for submitting an employee drug testing program, unless
289-the employee drug testing program has been revised.
290-HEA 1198 — Concur Speaker of the House of Representatives
291-President of the Senate
292-President Pro Tempore
293-Governor of the State of Indiana
294-Date: Time:
295-HEA 1198 — Concur
733+the employee drug testing program has been revised.".
734+Delete page 8.
735+(Reference is to HB 1198 as printed January 30, 2025.)
736+TESHKA
737+_____
738+COMMITTEE REPORT
739+Mr. President: The Senate Committee on Pensions and Labor, to
740+which was referred House Bill No. 1198, has had the same under
741+consideration and begs leave to report the same back to the Senate with
742+the recommendation that said bill be AMENDED as follows:
743+Page 1, line 7, delete "five hundred thousand dollars".
744+Page 1, line 8, delete "($500,000)." and insert "three hundred
745+EH 1198—LS 7246/DI 137 19
746+seventy-five thousand dollars ($375,000), adjusted annually by the
747+percentage change in the Consumer Price Index for all Urban
748+Consumers as published by the United States Bureau of Labor
749+Statistics. The department of local government finance shall
750+annually publish the adjusted cost estimate threshold for the
751+current year, determined in the manner required by this
752+subsection, on the department's website.".
753+and when so amended that said bill do pass.
754+(Reference is to HB 1198 as reprinted February 4, 2025.)
755+ROGERS, Chairperson
756+Committee Vote: Yeas 11, Nays 0.
757+EH 1198—LS 7246/DI 137