| 1 | + | *EH1559.1* |
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| 2 | + | March 21, 2025 |
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| 3 | + | ENGROSSED |
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| 4 | + | HOUSE BILL No. 1559 |
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| 5 | + | _____ |
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| 6 | + | DIGEST OF HB 1559 (Updated March 19, 2025 10:39 am - DI 153) |
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| 7 | + | Citations Affected: IC 5-32. |
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| 8 | + | Synopsis: Construction manager as constructor. Provides that when a |
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| 9 | + | public agency chooses to employ a construction manager as constructor |
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| 10 | + | (CMc) on a public works project, the applicable contract award |
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| 11 | + | standard for the project is "lowest and best". Increases the maximum |
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| 12 | + | amount of work a CMc may perform on a project from 20% of the total |
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| 13 | + | value of a project to 30% of the total value of a project. |
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| 14 | + | Effective: July 1, 2025. |
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| 15 | + | VanNatter, Moseley |
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| 16 | + | (SENATE SPONSOR — BALDWIN) |
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| 17 | + | January 21, 2025, read first time and referred to Committee on Employment, Labor and |
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| 18 | + | Pensions. |
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| 19 | + | February 6, 2025, reported — Do Pass. |
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| 20 | + | February 10, 2025, read second time, ordered engrossed. |
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| 21 | + | February 11, 2025, engrossed. |
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| 22 | + | February 13, 2025, read third time, passed. Yeas 91, nays 0. |
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| 23 | + | SENATE ACTION |
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| 24 | + | March 3, 2025, read first time and referred to Committee on Local Government. |
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| 25 | + | March 4, 2025, reassigned to Committee on Pensions and Labor pursuant to Rule 68(b). |
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| 26 | + | March 20, 2025, amended, reported favorably — Do Pass. |
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| 27 | + | EH 1559—LS 7532/DI 137 March 21, 2025 |
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15 | | - | SECTION 1. IC 5-32-2-3, AS ADDED BY P.L.128-2014, |
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16 | | - | SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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17 | | - | JULY 1, 2025]: Sec. 3. "Applicable contract award standard" refers to |
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18 | | - | the following: means, for purposes of this chapter, "lowest and |
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19 | | - | best". |
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20 | | - | (1) If the applicable public works statute is IC 4-13.6 or |
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21 | | - | IC 36-1-12, the applicable contract award standard is "lowest |
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22 | | - | responsive and responsible". |
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23 | | - | (2) If the applicable public works statute is IC 5-16, the applicable |
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24 | | - | contract award standard is "lowest and best". |
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25 | | - | (3) If the applicable public works statute is a statute other than the |
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26 | | - | statutes referred to in subdivision (1) or (2), the applicable |
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27 | | - | contract award standard is the standard prescribed by the other |
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28 | | - | public works statute that is the equivalent to "lowest responsive |
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29 | | - | and responsible" or "lowest and best". |
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30 | | - | SECTION 2. IC 5-32-3-7, AS ADDED BY P.L.128-2014, |
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| 43 | + | 1 SECTION 1. IC 5-32-2-3, AS ADDED BY P.L.128-2014, |
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| 44 | + | 2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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| 45 | + | 3 JULY 1, 2025]: Sec. 3. "Applicable contract award standard" refers to |
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| 46 | + | 4 the following: means, for purposes of this chapter, "lowest and |
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| 47 | + | 5 best". |
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| 48 | + | 6 (1) If the applicable public works statute is IC 4-13.6 or |
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| 49 | + | 7 IC 36-1-12, the applicable contract award standard is "lowest |
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| 50 | + | 8 responsive and responsible". |
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| 51 | + | 9 (2) If the applicable public works statute is IC 5-16, the applicable |
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| 52 | + | 10 contract award standard is "lowest and best". |
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| 53 | + | 11 (3) If the applicable public works statute is a statute other than the |
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| 54 | + | 12 statutes referred to in subdivision (1) or (2), the applicable |
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| 55 | + | 13 contract award standard is the standard prescribed by the other |
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| 56 | + | 14 public works statute that is the equivalent to "lowest responsive |
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| 57 | + | 15 and responsible" or "lowest and best". |
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| 58 | + | 16 SECTION 2. IC 5-32-3-7, AS ADDED BY P.L.128-2014, |
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| 59 | + | 17 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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| 60 | + | EH 1559—LS 7532/DI 137 2 |
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| 61 | + | 1 JULY 1, 2025]: Sec. 7. A CMc may perform a part of the work only if: |
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| 62 | + | 2 (1) the public agency approves of the CMc's performance of the |
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| 63 | + | 3 work; |
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| 64 | + | 4 (2) the CMc would be awarded a contract for the work under the |
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| 65 | + | 5 applicable contract award standard; and |
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| 66 | + | 6 (3) the CMc performs only such work that equals not more than |
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| 67 | + | 7 twenty thirty percent (20%) (30%) of the total value of the |
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| 68 | + | 8 project. |
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| 69 | + | EH 1559—LS 7532/DI 137 3 |
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| 70 | + | COMMITTEE REPORT |
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| 71 | + | Mr. Speaker: Your Committee on Employment, Labor and Pensions, |
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| 72 | + | to which was referred House Bill 1559, has had the same under |
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| 73 | + | consideration and begs leave to report the same back to the House with |
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| 74 | + | the recommendation that said bill do pass. |
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| 75 | + | (Reference is to HB 1559 as introduced.) |
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| 76 | + | VANNATTER |
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| 77 | + | Committee Vote: Yeas 12, Nays 0 |
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| 78 | + | _____ |
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| 79 | + | REPORT OF THE PRESIDENT |
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| 80 | + | PRO TEMPORE |
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| 81 | + | Mr. President: Pursuant to Senate Rule 68(b), I hereby report that |
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| 82 | + | House Bill 1559, currently assigned to the Committee on Local |
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| 83 | + | Government, be reassigned to the Committee on Pensions and Labor. |
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| 84 | + | BRAY |
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| 85 | + | _____ |
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| 86 | + | COMMITTEE REPORT |
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| 87 | + | Mr. President: The Senate Committee on Pensions and Labor, to |
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| 88 | + | which was referred House Bill No. 1559, has had the same under |
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| 89 | + | consideration and begs leave to report the same back to the Senate with |
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| 90 | + | the recommendation that said bill be AMENDED as follows: |
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| 91 | + | Page 1, after line 15, begin a new paragraph and insert: |
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| 92 | + | "SECTION 2. IC 5-32-3-7, AS ADDED BY P.L.128-2014, |
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