LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6494 NOTE PREPARED: Dec 13, 2024
BILL NUMBER: HB 1363 BILL AMENDED:
SUBJECT: Public Works Projects.
FIRST AUTHOR: Rep. Wesco BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: Design-Build Projects– The bill provides that a contractor that employs 10 or
more employees on a design-build public works project must provide its employees access to a training
program applicable to the tasks to be performed in the normal course of the employee's employment with the
contractor on the public project. The bill provides that a tier 1 or tier 2 contractor that employs 50 or more
journeymen must participate in an apprenticeship or training program that meets certain standards. The bill
requires design-builders and any member of a team working on a design-build public works project to comply
with certain statutes.
Construction Managers as Constructors Projects– The bill provides that a public agency awarding a contract
for a construction manager as constructor project may not take certain actions based on a bidder's, offeror's,
or contractor's entering into, refusing to enter into, adhering to, or refusing to adhere to an agreement with
a labor organization.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Design-Build Projects: Under the current higher education outcomes-
based performance funding formula, changes to enrollment could affect higher education appropriations for
operations in future bienniums. The impact on state expenditures would likely be minor and depend on the
higher education formula used in the future. [SEIs receive state funding through General Fund
appropriations.]
Construction Managers as Constructors Projects: This provision of the bill should not impact state
expenditures, as the state does not use project labor agreements on state public works projects or union
affiliation in its bidder pre-qualifications.
The bill applies to all state agencies, state educational institutions, and bodies corporate and politic created
by statute. The bill does not apply to judicial or legislative departments or the Indiana Department of
Transportation.
HB 1363 1 Additional Information: CMc (also known as Construction Manager at Risk) is a project management process
that generally requires a commitment by the construction manager to deliver a project within a guaranteed
maximum price (GMP). The construction manager must manage and control construction costs so that they
do not exceed the GMP because the construction manager would have to cover any additional costs if they
occur.
The bill specifies that a contractor who is required to provide training for employees may comply with the
training requirements through several options, two of which include programs offered by Ivy Tech
Community College of Indiana or Vincennes University. State operating support for Indiana state educational
institutions (SEIs) is composed of base funding and performance funding.
Explanation of State Revenues: Design-Build Projects: To the extent that contractors choose to utilize the
training programs as described under the bill, tuition revenues could increase in programs offered by higher
education institutions such as Ivy Tech and Vincennes University could from increased enrollment.
Explanation of Local Expenditures: Construction Managers as Constructors Projects: The bill could have
an indeterminate impact on expenditures for any local unit that currently uses project labor agreements in
its public works projects.
The bill applies to counties, municipalities, townships, school corporations, certain conservancy districts,
fire protection districts, departments of aviation, and airport authorities. The CMc provision also applies to
public libraries and health and hospital corporations.
Explanation of Local Revenues:
State Agencies Affected: Ivy Tech Community College of Indiana, Vincennes University; agencies involved
in public works projects.
Local Agencies Affected: Local units involved in public works projects.
Information Sources: Molly Timperman, Communications/Legislative Director, Indiana Department of
Administration; https://www.in.gov/idoa/state-property-and-facilities/public-works/
https://www.in.gov/idoa/state-property-and-facilities/public-works/certification-board/
https://www.in.gov/idoa/state-property-and-facilities/public-works/general-forms-and-manuals/
https://indianalawreview.com/2016/02/19/union-based-bidding-restrictions-unresolved-issues/
https://library.municode.com/in/gary/codes/code_of_ordinances
Project Labor Agreements, Congressional Research Service, June 28, 2012
https://www.finra.org/investors/learn-to-invest/choosing-investment-professional/registered-financial-pro
fessionals
Fiscal Analyst: Chris Baker, 317-232-9851.
HB 1363 2