First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1198
AN ACT to amend the Indiana Code concerning local government.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 36-1-12-3, AS AMENDED BY P.L.114-2022,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) The board may purchase or lease materials
in the manner provided in IC 5-22 and perform any public work, by
means of its own workforce, without awarding a contract whenever the
cost of that public work project is estimated to be less than two hundred
fifty thousand dollars ($250,000). three hundred seventy-five
thousand dollars ($375,000), adjusted annually by the percentage
change in the Consumer Price Index for all Urban Consumers as
published by the United States Bureau of Labor Statistics. The
department of local government finance shall annually publish the
adjusted cost estimate threshold for the current year, determined
in the manner required by this subsection, on the department's
website. Before a board may perform any work under this section by
means of its own workforce, the political subdivision or agency must
have a group of employees on its staff who are capable of performing
the construction, maintenance, and repair applicable to that work. For
purposes of this subsection, the cost of a public work project includes:
(1) the actual cost of materials, labor, equipment, and rental;
(2) a reasonable rate for use of trucks and heavy equipment
owned; and
(3) all other expenses incidental to the performance of the project.
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(b) This subsection applies only to a municipality or a county. The
workforce of a municipality or county may perform a public work
described in subsection (a) only if:
(1) the workforce, through demonstrated skills, training, or
expertise, is capable of performing the public work; and
(2) for a public work project under subsection (a) whose cost is
estimated to be more than one hundred thousand dollars
($100,000), the board:
(A) publishes a notice under IC 5-3-1 that:
(i) describes the public work that the board intends to
perform with its own workforce; and
(ii) sets forth the projected cost of each component of the
public work as described in subsection (a); and
(B) determines at a public meeting that it is in the public
interest to perform the public work with the board's own
workforce.
A public work project performed by a board's own workforce must be
inspected and accepted as complete in the same manner as a public
work project performed under a contract awarded after receiving bids.
(c) When the project involves the rental of equipment with an
operator furnished by the owner, or the installation or application of
materials by the supplier of the materials, the project is considered to
be a public work project and subject to this chapter. However, an
annual contract may be awarded for equipment rental and materials to
be installed or applied during a calendar or fiscal year if the proposed
project or projects are described in the bid specifications.
(d) A board of aviation commissioners or an airport authority board
may purchase or lease materials in the manner provided in IC 5-22 and
perform any public work by means of its own workforce and owned or
leased equipment, in the construction, maintenance, and repair of any
airport roadway, runway, taxiway, or aircraft parking apron whenever
the cost of that public work project is estimated to be less than one
hundred fifty thousand dollars ($150,000).
(e) Municipal and county hospitals must comply with this chapter
for all contracts for public work that are financed in whole or in part
with cumulative building fund revenue, as provided in section 1(c) of
this chapter. However, if the cost of the public work is estimated to be
less than fifty thousand dollars ($50,000), as reflected in the board
minutes, the hospital board may have the public work done without
receiving bids, by purchasing the materials and performing the work by
means of its own workforce and owned or leased equipment.
(f) If a public works project involves a structure, an improvement,
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or a facility under the control of a public highway department that is
under the political control of a unit (as defined in IC 36-1-2-23) and
involved in the construction, maintenance, or repair of a public
highway (as defined in IC 9-25-2-4), the department may not
artificially divide the project to bring any part of the project under this
section.
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
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
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(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.
(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:
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(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.
(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
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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
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.
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
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
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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.
(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.
HEA 1198 — Concur Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1198 — Concur