Indiana 2025 Regular Session

Indiana Senate Bill SB0093 Compare Versions

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22 Introduced Version
33 SENATE BILL No. 93
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 4-13.5-1.5-13; IC 4-13.6; IC 5-1-17-18;
77 IC 5-16; IC 5-23; IC 5-30; IC 8-1.5-2-27; IC 8-15.5-6-2; IC 8-15.7-6-2;
88 IC 16-22; IC 22-1-1-16; IC 22-2-2-10.5; IC 35-44.2-3; IC 35-52-5-8.1;
99 IC 36-1; IC 36-7; IC 36-7.5; IC 36-7.6; IC 36-9-23-2.
1010 Synopsis: Common construction wage. Requires any firm, individual,
1111 partnership, limited liability company, or corporation that is awarded
1212 a contract, after June 30, 2025, by the state, a political subdivision, or
1313 a municipal corporation for the construction of a public work, and any
1414 subcontractor of the construction, to pay a scale of wages that is not
1515 less than the common construction wage. Establishes a process for
1616 determining the common construction wage. Provides that a contractor
1717 or subcontractor who knowingly fails to pay the common construction
1818 wage commits a Class B misdemeanor. Provides that a public work
1919 project may not be artificially divided into two or more projects to
2020 avoid the application of the common construction wage requirements.
2121 Provides that a person who unlawfully divides a public work project
2222 commits a Class A infraction. Repeals a chapter regarding the effect of
2323 the repeal of the common construction wage statute by legislation
2424 enacted in 2015 and a chapter regarding wage scales for public works
2525 projects. Makes corresponding changes.
2626 Effective: July 1, 2025.
2727 Dernulc, Niemeyer
2828 January 8, 2025, read first time and referred to Committee on Pensions and Labor.
2929 2025 IN 93—LS 6394/DI 141 Introduced
3030 First Regular Session of the 124th General Assembly (2025)
3131 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3232 Constitution) is being amended, the text of the existing provision will appear in this style type,
3333 additions will appear in this style type, and deletions will appear in this style type.
3434 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
3535 provision adopted), the text of the new provision will appear in this style type. Also, the
3636 word NEW will appear in that style type in the introductory clause of each SECTION that adds
3737 a new provision to the Indiana Code or the Indiana Constitution.
3838 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
3939 between statutes enacted by the 2024 Regular Session of the General Assembly.
4040 SENATE BILL No. 93
4141 A BILL FOR AN ACT to amend the Indiana Code concerning state
4242 and local administration.
4343 Be it enacted by the General Assembly of the State of Indiana:
4444 1 SECTION 1. IC 4-13.5-1.5-13, AS AMENDED BY P.L.252-2015,
4545 2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4646 3 JULY 1, 2025]: Sec. 13. (a) An agreement or a contract under this
4747 4 chapter is subject to IC 5-16-7.3.
4848 5 (a) (b) The contractor and each subcontractor engaged in installing
4949 6 energy conservation measures under a guaranteed energy cost savings
5050 7 contract shall keep full and accurate records indicating the names,
5151 8 classifications, and work performed by each worker employed by the
5252 9 respective contractor and subcontractor in connection with the work
5353 10 together with an accurate record of the number of hours worked by
5454 11 each worker and the actual wages paid.
5555 12 (b) (c) The payroll records required to be kept under this section
5656 13 must be open to inspection by an authorized representative of the
5757 14 commission and the department of labor.
5858 15 SECTION 2. IC 4-13.6-2-4, AS AMENDED BY P.L.252-2015,
5959 16 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6060 17 JULY 1, 2025]: Sec. 4. The division shall comply with this article and
6161 2025 IN 93—LS 6394/DI 141 2
6262 1 the following statutes in the administration of public works contracts:
6363 2 (1) IC 5-16-3.
6464 3 (2) IC 5-16-6.
6565 4 (3) IC 5-16-7.3.
6666 5 (3) (4) IC 5-16-8.
6767 6 (4) (5) IC 5-16-9.
6868 7 (5) (6) IC 5-16-13.
6969 8 (6) (7) IC 5-16-14.
7070 9 SECTION 3. IC 4-13.6-8-8, AS AMENDED BY P.L.252-2015,
7171 10 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7272 11 JULY 1, 2025]: Sec. 8. (a) An agreement or a contract under this
7373 12 chapter is subject to IC 5-16-7.3.
7474 13 (a) (b) The contractor and each subcontractor engaged in installing
7575 14 energy conservation measures under a guaranteed energy savings
7676 15 contract shall keep full and accurate records indicating the names,
7777 16 classifications, and work performed by each worker employed by the
7878 17 respective contractor and subcontractor in connection with the work
7979 18 and an accurate record of the number of hours worked by each worker
8080 19 and the actual wages paid.
8181 20 (b) (c) The payroll records required to be kept under this section
8282 21 must be open to inspection by an authorized representative of the
8383 22 department and the department of labor.
8484 23 SECTION 4. IC 5-1-17-18, AS AMENDED BY P.L.157-2024,
8585 24 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8686 25 JULY 1, 2025]: Sec. 18. (a) Subject to subsection (h), the authority
8787 26 may issue bonds for the purpose of obtaining money to pay the cost of:
8888 27 (1) acquiring real or personal property, including existing capital
8989 28 improvements;
9090 29 (2) constructing, improving, reconstructing, or renovating one (1)
9191 30 or more capital improvements; or
9292 31 (3) funding or refunding bonds issued under IC 36-10-8 or
9393 32 IC 36-10-9 or prior law.
9494 33 (b) The bonds are payable from the lease rentals from the lease of
9595 34 the capital improvements for which the bonds were issued, insurance
9696 35 proceeds, and any other funds pledged or available.
9797 36 (c) The bonds shall be authorized by a resolution of the board.
9898 37 (d) The terms and form of the bonds shall either be set out in the
9999 38 resolution or in a form of trust indenture approved by the resolution.
100100 39 (e) The bonds shall mature within forty (40) years.
101101 40 (f) The board shall sell the bonds at public or private sale upon the
102102 41 terms determined by the board.
103103 42 (g) All money received from any bonds issued under this chapter
104104 2025 IN 93—LS 6394/DI 141 3
105105 1 shall be applied to the payment of the cost of the acquisition or
106106 2 construction, or both, of capital improvements, or the cost of refunding
107107 3 or refinancing outstanding bonds, for which the bonds are issued. The
108108 4 cost may include:
109109 5 (1) planning and development of the facility and all buildings,
110110 6 facilities, structures, and improvements related to it;
111111 7 (2) acquisition of a site and clearing and preparing the site for
112112 8 construction;
113113 9 (3) equipment, facilities, structures, and improvements that are
114114 10 necessary or desirable to make the capital improvement suitable
115115 11 for use and operations;
116116 12 (4) architectural, engineering, consultant, and attorney's fees;
117117 13 (5) incidental expenses in connection with the issuance and sale
118118 14 of bonds;
119119 15 (6) reserves for principal and interest;
120120 16 (7) interest during construction;
121121 17 (8) financial advisory fees;
122122 18 (9) insurance during construction;
123123 19 (10) municipal bond insurance, debt service reserve insurance,
124124 20 letters of credit, or other credit enhancement; and
125125 21 (11) in the case of refunding or refinancing, payment of the
126126 22 principal of, redemption premiums (if any) for, and interest on,
127127 23 the bonds being refunded or refinanced.
128128 24 (h) The authority may not issue bonds under this chapter unless the
129129 25 authority first finds that the following conditions are met:
130130 26 (1) The capital improvement board and the authority have entered
131131 27 into a written agreement concerning the terms of the financing of
132132 28 the facility. This agreement must include the following
133133 29 provisions:
134134 30 (A) Notwithstanding any other law, if the capital improvement
135135 31 board selected a construction manager and an architect for a
136136 32 facility before May 15, 2005, the authority will contract with
137137 33 that construction manager and architect and use plans as
138138 34 developed by that construction manager and architect. In
139139 35 addition, any other agreements entered into by the capital
140140 36 improvement board or a political subdivision served by the
141141 37 capital improvement board with respect to the design and
142142 38 construction of the facility will be reviewed by a selection
143143 39 committee formed under this section (as in effect on May 15,
144144 40 2005). The selection committee is not bound by any prior
145145 41 commitments of the capital improvement board or the political
146146 42 subdivision, other than the general project design, and will
147147 2025 IN 93—LS 6394/DI 141 4
148148 1 approve all contracts necessary for the design and construction
149149 2 of the facility.
150150 3 (B) If before May 15, 2005, the capital improvement board
151151 4 acquired any land, plans, or other information necessary for
152152 5 the facility and the board had budgeted for these items, the
153153 6 capital improvement board will transfer the land, plans, or
154154 7 other information useful to the authority for a price not to
155155 8 exceed the lesser of:
156156 9 (i) the actual cost to the capital improvement board; or
157157 10 (ii) three million five hundred thousand dollars
158158 11 ($3,500,000).
159159 12 (C) The capital improvement board agrees to take any legal
160160 13 action that the authority considers necessary to facilitate the
161161 14 financing of the facility, including entering into agreements
162162 15 during the design and construction of the facility or a sublease
163163 16 of a capital improvement to any state agency that is then leased
164164 17 by the authority to any state agency under section 26 of this
165165 18 chapter.
166166 19 (D) The capital improvement board is prohibited from taking
167167 20 any other action with respect to the financing of the facility
168168 21 without the prior approval of the authority. The authority is not
169169 22 bound by the terms of any agreement entered into by the
170170 23 capital improvement board with respect to the financing of the
171171 24 facility without the prior approval of the authority.
172172 25 (E) As the project financier, the Indiana finance authority (or
173173 26 its successor agency) and the public finance director will be
174174 27 responsible for selecting all investment bankers, bond counsel,
175175 28 trustees, and financial advisors.
176176 29 (F) The capital improvement board agrees to deliver to the
177177 30 authority the one hundred million dollars ($100,000,000) that
178178 31 is owed to the capital improvement board, the consolidated
179179 32 city, or Marion County, pursuant to an agreement between the
180180 33 National Football League franchised professional football
181181 34 team and the capital improvement board, the consolidated city,
182182 35 or Marion County. This amount shall be applied to the cost of
183183 36 construction for the stadium part of the facility. This amount
184184 37 does not have to be delivered until a lease is entered into for
185185 38 the stadium between the authority and the capital improvement
186186 39 board.
187187 40 (G) The authority agrees to consult with the staff of the capital
188188 41 improvement board on an as needed basis during the design
189189 42 and construction of the facility, and the capital improvement
190190 2025 IN 93—LS 6394/DI 141 5
191191 1 board agrees to make its staff available for this purpose.
192192 2 (H) The authority, Marion County, the consolidated city, the
193193 3 capital improvement board and the National Football League
194194 4 franchised professional football team must commit to using
195195 5 their best efforts to assist and cooperate with one another to
196196 6 design and construct the facility on time and on budget.
197197 7 (2) The capital improvement board and the National Football
198198 8 League franchised professional football team have entered into a
199199 9 lease for the stadium part of the facility that has been approved by
200200 10 the authority and has a term of at least thirty (30) years.
201201 11 (3) After June 30, 2025, each contract or subcontract for the
202202 12 construction of a facility and all buildings, facilities,
203203 13 structures, and improvements related to that facility to be
204204 14 financed in whole or in part through the issuance of the bonds
205205 15 requires payment of the common construction wage required
206206 16 by IC 5-16-7.3.
207207 17 SECTION 5. IC 5-16-7.1 IS REPEALED [EFFECTIVE JULY 1,
208208 18 2025]. (Effect of Repeal of Common Construction Wage Statute (IC
209209 19 5-16-7)).
210210 20 SECTION 6. IC 5-16-7.2 IS REPEALED [EFFECTIVE JULY 1,
211211 21 2025]. (Wage Scales for Public Works Projects).
212212 22 SECTION 7. IC 5-16-7.3 IS ADDED TO THE INDIANA CODE
213213 23 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
214214 24 JULY 1, 2025]:
215215 25 Chapter 7.3. Wage Scale of Contractors' and Subcontractors'
216216 26 Employees
217217 27 Sec. 1. This chapter applies to a public works contract awarded
218218 28 by a public agency after June 30, 2025.
219219 29 Sec. 2. The following definitions apply throughout this chapter:
220220 30 (1) "Common construction wage" means a scale of wages for
221221 31 each class of work described in section 3(c)(1) of this chapter
222222 32 that is not less than the common construction wage of all
223223 33 construction wages being paid in the county where a project
224224 34 is located, as determined by the committee described in
225225 35 section 3(b) of this chapter after having considered the
226226 36 following:
227227 37 (A) Any reports with respect to wage scales submitted by
228228 38 the Indiana State Building and Construction Trades
229229 39 Council.
230230 40 (B) Any reports with respect to wage scales submitted by
231231 41 the Associated Builders and Contractors of Indiana.
232232 42 (C) Any other information submitted by any person to the
233233 2025 IN 93—LS 6394/DI 141 6
234234 1 committee established under section 3(b) of this chapter.
235235 2 (2) "State" includes any officer, board, commission, or other
236236 3 agency authorized by law to award contracts for the
237237 4 performance of public work on behalf of the state, except as
238238 5 otherwise provided in this chapter.
239239 6 (3) "Municipal corporation" includes any county, city, town,
240240 7 school corporation, or any officer, board, commission, or
241241 8 other agency authorized by law to award contracts for the
242242 9 performance of public work on behalf of a municipal
243243 10 corporation. The term also includes a redevelopment
244244 11 commission established under IC 36-7-14-3.
245245 12 (4) "Public work" includes any public building, highway,
246246 13 street, alley, bridge, sewer, drain, improvement, or any other
247247 14 work of any nature or character that is paid for out of public
248248 15 funds, except as otherwise provided in this chapter.
249249 16 Sec. 3. (a) Any firm, individual, partnership, limited liability
250250 17 company, or corporation that is awarded a contract by the state,
251251 18 a political subdivision, or a municipal corporation for the
252252 19 construction of a public work, and any subcontractor of the
253253 20 construction, shall pay for each class of work described in
254254 21 subsection (c)(1) on the project a scale of wages that is not less than
255255 22 the common construction wage.
256256 23 (b) For the purpose of ascertaining what the common
257257 24 construction wage is in the county, the awarding governmental
258258 25 agency, before advertising for the contract, shall set up a
259259 26 committee of five (5) persons as follows:
260260 27 (1) One (1) person representing labor, to be named by the
261261 28 president of the Indiana State Building and Construction
262262 29 Trades Council.
263263 30 (2) One (1) person representing industry, to be named by the
264264 31 awarding agency.
265265 32 (3) A third member to be named by the state president of the
266266 33 Associated Builders and Contractors.
267267 34 (4) One (1) taxpayer who pays the tax that will be the funding
268268 35 source for the project and resides in the county where the
269269 36 project is located. The owner of the project shall make the
270270 37 appointment under this subdivision.
271271 38 (5) One (1) taxpayer who pays the tax that will be the funding
272272 39 source for the project and resides in the county where the
273273 40 project is located. The legislative body (as defined in
274274 41 IC 36-1-2-9) for the county where the project is located shall
275275 42 make the appointment under this subdivision.
276276 2025 IN 93—LS 6394/DI 141 7
277277 1 (c) As soon as appointed, the committee shall meet in the county
278278 2 where the project is located and determine in writing the following:
279279 3 (1) A classification of the labor to be employed in the
280280 4 performance of the contract for the project, divided into the
281281 5 following three (3) classes:
282282 6 (A) Skilled labor.
283283 7 (B) Semiskilled labor.
284284 8 (C) Unskilled labor.
285285 9 (2) The wage per hour to be paid each of the classes.
286286 10 The committee is not required to consider information not
287287 11 presented to the committee at the meeting. IC 5-14-1.5 (open door
288288 12 law) applies to a meeting of the committee.
289289 13 (d) The rate of wages determined by the committee under
290290 14 subsection (c) applies to any contract for which the awarding
291291 15 government agency lets not later than three (3) months after the
292292 16 date the committee determines the rate of wages. The committee
293293 17 shall establish wages for all classifications of work that may be
294294 18 employed on projects subject to contracts let by the awarding
295295 19 agency for three (3) months after the date the committee
296296 20 determines the rate of wages. If an awarding agency advertises for
297297 21 a contract that includes classifications that are not listed on the
298298 22 existing wage scale, the awarding agency shall form a new
299299 23 committee under subsection (b) to determine the classifications and
300300 24 wages on the contract.
301301 25 (e) If the awarding government agency lets for a contract later
302302 26 than three (3) months after the committee determines the rate of
303303 27 wages, the awarding government agency shall form a new
304304 28 committee under subsection (b) to determine a rate of wages for
305305 29 the contract. The rate of wages determined under this subsection
306306 30 applies to any contract for which the awarding government agency
307307 31 lets not later than three (3) months after the rate of wages is
308308 32 determined under this subsection.
309309 33 (f) The rate of wages determined under subsection (c) shall not
310310 34 be less than the common construction wage for each of the three (3)
311311 35 classes of wages described in subsection (c) that are currently being
312312 36 paid in the county where the project is located.
313313 37 (g) This chapter does not apply to contracts let by the Indiana
314314 38 department of transportation for the construction of highways,
315315 39 streets, and bridges. IC 8-23-9 applies to state highway projects.
316316 40 (h) A determination under subsection (c) shall be made and filed
317317 41 with the awarding agency at least two (2) weeks prior to the date
318318 42 fixed for the letting, and a copy of the determination shall be
319319 2025 IN 93—LS 6394/DI 141 8
320320 1 furnished upon request to any person desiring to bid on the
321321 2 contract. The schedule is open to the inspection of the public.
322322 3 (i) If the committee appointed under subsection (b) fails to act
323323 4 and to file a determination under subsection (c) at or before the
324324 5 time required under subsection (h), the awarding agency shall
325325 6 make the determination, and its finding shall be final.
326326 7 (j) It shall be a condition of a contract awarded under this
327327 8 chapter that the successful bidder and all subcontractors shall
328328 9 comply strictly with the determination made under this section.
329329 10 (k) This chapter does not apply to public projects in Indiana
330330 11 that would otherwise be subject to this chapter that are to be paid
331331 12 for in whole or in part with funds granted by the federal
332332 13 government, unless the department of the federal government
333333 14 making the grant consents in writing that this chapter is applicable
334334 15 to the project.
335335 16 (l) Notwithstanding any other law, this chapter applies to
336336 17 projects that will be:
337337 18 (1) owned entirely; or
338338 19 (2) leased with an option to purchase;
339339 20 by the state or a political subdivision (as defined in IC 36-1-2-13).
340340 21 (m) Notwithstanding any other law, this chapter does not apply
341341 22 to projects in which the actual construction costs are less than
342342 23 three hundred fifty thousand dollars ($350,000).
343343 24 Sec. 4. (a) The state or any municipal corporation of the state
344344 25 letting a contract for a public work shall require any contractor or
345345 26 subcontractor performing the public work to file a schedule of the
346346 27 wages to be paid to the laborers, workmen, or mechanics thereon
347347 28 with the state or municipal corporation. The schedule shall be filed
348348 29 before any work is performed on the contract or subcontract.
349349 30 (b) The scale included in a schedule of wages filed under this
350350 31 section shall not be less than the scale determined under section 3
351351 32 of this chapter.
352352 33 (c) Nothing in this chapter shall be construed to prevent a
353353 34 contractor or subcontractor from paying a higher rate of wages
354354 35 than those set out in the schedule of wages filed by the contractor
355355 36 or subcontractor under this section.
356356 37 Sec. 5. A contractor or subcontractor who knowingly fails to pay
357357 38 the rate of wages determined under this chapter commits a Class
358358 39 B misdemeanor. If the contractor or subcontractor has committed
359359 40 a prior offense under this section, the contract on which the instant
360360 41 offense occurred shall be forfeited and the contractor or
361361 42 subcontractor may not receive any further payment on the
362362 2025 IN 93—LS 6394/DI 141 9
363363 1 contract nor may the state or the municipal corporation making
364364 2 the contract make any further payments on the contract from any
365365 3 of the funds under its charge or control.
366366 4 Sec. 6. (a) This chapter does not apply to contractors or
367367 5 subcontractors performing public work for Purdue University on
368368 6 agricultural or forestry land owned or occupied by the university
369369 7 and used by it for educational or research purposes if the cost of
370370 8 the work is estimated to be less than fifty thousand dollars
371371 9 ($50,000).
372372 10 (b) Except as provided in IC 5-23, this chapter does not apply to
373373 11 a person that has entered into an operating agreement with the
374374 12 state, a municipal corporation, or another political subdivision for
375375 13 the management or operation of a public facility under IC 5-23.
376376 14 Sec. 7. (a) A public work project may not be artificially divided
377377 15 into two (2) or more projects to avoid the application of this
378378 16 chapter.
379379 17 (b) A bidder, quoter, or other person who is a party to a public
380380 18 work contract who knowingly violates this section commits a Class
381381 19 A infraction and may not be a party to, or benefit from, a public
382382 20 work contract for two (2) years after the date of the adjudication.
383383 21 (c) An officer or employee of the state or a municipal
384384 22 corporation who knowingly violates this section commits a Class A
385385 23 infraction.
386386 24 SECTION 8. IC 5-23-3-3.1 IS ADDED TO THE INDIANA CODE
387387 25 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
388388 26 1, 2025]: Sec. 3.1. If a governmental body enters into a BOT
389389 27 agreement after June 30, 2025, that involves the construction of a
390390 28 public facility with public funds under this chapter, the operator
391391 29 or any contractor or subcontractor engaged in the construction of
392392 30 that public facility shall pay the common construction wage as
393393 31 determined under IC 5-16-7.3.
394394 32 SECTION 9. IC 5-23-4-2.1 IS ADDED TO THE INDIANA CODE
395395 33 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
396396 34 1, 2025]: Sec. 2.1. If a governmental body enters into an operating
397397 35 agreement after June 30, 2025, that involves the construction of a
398398 36 public facility with public funds under this chapter, the operator
399399 37 or any contractor or subcontractor engaged in the construction of
400400 38 that public facility shall pay the common construction wage as
401401 39 determined under IC 5-16-7.3.
402402 40 SECTION 10. IC 5-30-6-4, AS AMENDED BY P.L.252-2015,
403403 41 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
404404 42 JULY 1, 2025]: Sec. 4. In addition to the design criteria package, a
405405 2025 IN 93—LS 6394/DI 141 10
406406 1 request for proposals must include the following:
407407 2 (1) Instructions.
408408 3 (2) Proposal forms and schedules.
409409 4 (3) General and special conditions.
410410 5 (4) The basis for evaluation of proposals, including a description
411411 6 of the selection criteria with the weight assigned to each criteria.
412412 7 (5) A determination of the common construction wage made
413413 8 under IC 5-16-7.3.
414414 9 (5) (6) Any other instructions, documents, or information relevant
415415 10 to the public project that the public agency considers relevant.
416416 11 SECTION 11. IC 5-30-8-6.1 IS ADDED TO THE INDIANA CODE
417417 12 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
418418 13 1, 2025]: Sec. 6.1. (a) A determination under IC 5-16-7.3-3(c) for a
419419 14 public project to be constructed under a design-build contract shall
420420 15 be made and filed with the public agency at least two (2) weeks
421421 16 before the date fixed for submission of the qualitative proposal and
422422 17 the price proposal under IC 5-30-6-5.
423423 18 (b) If the committee appointed under IC 5-16-7.3-3(b) fails to
424424 19 act and to file a determination under IC 5-16-7.3-3(c) within the
425425 20 time required by this section, the public agency shall make the
426426 21 determination, and its finding shall be final.
427427 22 (c) The time periods set forth in this section apply to any
428428 23 construction services provided for a public project to be
429429 24 constructed under a design-build contract, instead of the time
430430 25 periods set forth in IC 5-16-7.3-3(h) and IC 5-16-7.3-3(i).
431431 26 SECTION 12. IC 8-1.5-2-27, AS AMENDED BY P.L.252-2015,
432432 27 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
433433 28 JULY 1, 2025]: Sec. 27. (a) A municipality may lease waterworks
434434 29 facilities from a not-for-profit corporation, a public utility, a county, or
435435 30 a municipality. The term of the lease may not exceed fifty (50) years.
436436 31 The lease must provide that the municipality has an option to:
437437 32 (1) renew the lease for a further term on like conditions; and
438438 33 (2) purchase the waterworks facilities covered by the lease
439439 34 contract with the terms and conditions of the purchase specified
440440 35 in the lease.
441441 36 (b) If the option to purchase the waterworks facilities covered by the
442442 37 lease is exercised, the municipality, for the purpose of procuring money
443443 38 to pay the purchase price, may issue and sell revenue bonds under other
444444 39 laws governing the issuance and sale of waterworks revenue bonds for
445445 40 additions and extensions to municipal waterworks.
446446 41 (c) If the municipality has not exercised an option to purchase the
447447 42 property covered by the lease at the expiration of the lease, and upon
448448 2025 IN 93—LS 6394/DI 141 11
449449 1 the full discharge and performance by the municipality of its
450450 2 obligations under the lease contract, the property covered by the lease
451451 3 thereupon becomes the absolute property of the municipality, and the
452452 4 lessor shall execute proper instruments conveying to the municipality
453453 5 good and merchantable title thereto.
454454 6 (d) A waterworks facility leased under this section is subject to
455455 7 IC 5-16-7.3.
456456 8 SECTION 13. IC 8-15.5-6-2, AS AMENDED BY P.L.252-2015,
457457 9 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
458458 10 JULY 1, 2025]: Sec. 2. (a) Unless otherwise provided by federal law
459459 11 or this section, the operator or any contractor or subcontractor of the
460460 12 operator engaged in the construction of a project is not required to
461461 13 comply with IC 4-13.6 or IC 5-16 concerning state public works,
462462 14 IC 5-17 concerning purchases of materials and supplies, or other
463463 15 statutes concerning procedures for procurement of public works or
464464 16 personal property as a condition of being awarded and performing work
465465 17 on the project.
466466 18 (b) IC 5-16-7.3 concerning the common construction wage
467467 19 applies to the operator or any contractor or subcontractor of the
468468 20 operator engaged in the construction of a project that is the subject
469469 21 of a public-private agreement entered into after June 30, 2025.
470470 22 SECTION 14. IC 8-15.7-6-2, AS AMENDED BY P.L.252-2015,
471471 23 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
472472 24 JULY 1, 2025]: Sec. 2. (a) Unless otherwise provided by federal law
473473 25 or this section, the operator or any contractor or subcontractor of the
474474 26 operator engaged in the construction of a project is not required to
475475 27 comply with IC 4-13.6 or IC 5-16 concerning state public works,
476476 28 IC 5-17 concerning purchases of materials and supplies, or other
477477 29 statutes concerning procedures for procurement of public works or
478478 30 personal property as a condition of being awarded and performing work
479479 31 on the project.
480480 32 (b) IC 5-16-7.3 concerning the common construction wage
481481 33 applies to the operator or any contractor or subcontractor of the
482482 34 operator engaged in the construction of a project that is the subject
483483 35 of a public-private agreement entered into after June 30, 2025.
484484 36 SECTION 15. IC 16-22-6-37, AS AMENDED BY P.L.252-2015,
485485 37 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
486486 38 JULY 1, 2025]: Sec. 37. (a) A county or the governing board of the
487487 39 hospital may remodel or construct an addition to a hospital building
488488 40 leased under this chapter.
489489 41 (b) To provide funds for that purpose, the county may issue general
490490 42 obligation bonds or appropriate money from the county's general fund
491491 2025 IN 93—LS 6394/DI 141 12
492492 1 or other funds available for that purpose if the hospital building is
493493 2 owned by the county. The governing board of a hospital may use funds
494494 3 available to the board if the hospital building is owned by the county.
495495 4 (c) A contract entered into under this chapter for a public work
496496 5 (as defined in IC 5-16-7.3-2) is subject to IC 5-16-7.3.
497497 6 SECTION 16. IC 16-22-7-42, AS AMENDED BY P.L.252-2015,
498498 7 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
499499 8 JULY 1, 2025]: Sec. 42. (a) The governing board of the hospital may
500500 9 remodel or construct an addition to a hospital building leased by the
501501 10 hospital under this chapter.
502502 11 (b) To provide funds for that purpose, the county may issue general
503503 12 obligation aid bonds or the city hospital or city may appropriate money
504504 13 from the city hospital's or city's general fund or other funds available
505505 14 for that purpose if the hospital building is owned by the city hospital or
506506 15 city. The governing board of the hospital may use any funds available
507507 16 to the board if the hospital building is owned by the city.
508508 17 (c) A contract entered into under this chapter for a public work
509509 18 (as defined in IC 5-16-7.3-2) is subject to IC 5-16-7.3.
510510 19 SECTION 17. IC 22-1-1-16, AS AMENDED BY P.L.252-2015,
511511 20 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
512512 21 JULY 1, 2025]: Sec. 16. The commissioner of labor and the
513513 22 commissioner's authorized representative shall have the power and the
514514 23 authority to enter any place of employment for the purpose of
515515 24 collecting facts and statistics relating to the employment of workers and
516516 25 of making inspections for the proper enforcement of all of the labor
517517 26 laws of Indiana, including IC 5-16-7.3. An employer or owner may not
518518 27 refuse to admit the commissioner of labor or the commissioner's
519519 28 authorized representatives to the employer's or owner's place of
520520 29 employment.
521521 30 SECTION 18. IC 22-2-2-10.5, AS AMENDED BY P.L.144-2016,
522522 31 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
523523 32 JULY 1, 2025]: Sec. 10.5. (a) As used in this section, "unit" has the
524524 33 meaning set forth in IC 36-1-2-23.
525525 34 (b) Unless federal or state law provides otherwise, a unit may not:
526526 35 (1) establish;
527527 36 (2) mandate; or
528528 37 (3) otherwise require;
529529 38 a minimum wage that exceeds the minimum wage required by section
530530 39 4 of this chapter or by the federal minimum hourly wage prescribed by
531531 40 29 U.S.C. 206(a)(1).
532532 41 (c) Except as provided in IC 5-16-7.2, This section does not limit
533533 42 the authority of a unit to establish wage rates in a contract to which the
534534 2025 IN 93—LS 6394/DI 141 13
535535 1 unit is a party.
536536 2 SECTION 19. IC 35-44.2-3-4.1 IS ADDED TO THE INDIANA
537537 3 CODE AS A NEW SECTION TO READ AS FOLLOWS
538538 4 [EFFECTIVE JULY 1, 2025]: Sec. 4.1. A person who commits a
539539 5 wage scale violation in a state public works contract is subject to
540540 6 criminal prosecution under IC 5-16-7.3-5.
541541 7 SECTION 20. IC 35-44.2-3-5.1 IS ADDED TO THE INDIANA
542542 8 CODE AS A NEW SECTION TO READ AS FOLLOWS
543543 9 [EFFECTIVE JULY 1, 2025]: Sec. 5.1. A person who unlawfully
544544 10 divides a public works project is subject to a civil action for an
545545 11 infraction under IC 5-16-7.3-7.
546546 12 SECTION 21. IC 35-52-5-8.1 IS ADDED TO THE INDIANA
547547 13 CODE AS A NEW SECTION TO READ AS FOLLOWS
548548 14 [EFFECTIVE JULY 1, 2025]: Sec. 8.1. IC 5-16-7.3-5 defines a crime
549549 15 concerning wage rate of contractors' and subcontractors'
550550 16 employees.
551551 17 SECTION 22. IC 36-1-12-15, AS AMENDED BY P.L.252-2015,
552552 18 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
553553 19 JULY 1, 2025]: Sec. 15. (a) A contract by the board for public work
554554 20 must conform to:
555555 21 (1) the wage scale provisions of IC 5-16-7.3; and
556556 22 (2) IC 5-16-13.
557557 23 (b) A contract by the board for public work must conform with the
558558 24 antidiscrimination provisions of IC 5-16-6. The board may consider a
559559 25 violation of IC 5-16-6 a material breach of the contract, as provided in
560560 26 IC 22-9-1-10.
561561 27 SECTION 23. IC 36-1-12.5-5, AS AMENDED BY P.L.152-2021,
562562 28 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
563563 29 JULY 1, 2025]: Sec. 5. (a) The governing body may enter into an
564564 30 agreement with a public utility to participate in a utility efficiency
565565 31 program or enter into a guaranteed savings contract with a qualified
566566 32 provider to increase the political subdivision's billable revenues or
567567 33 reduce the school corporation's or the political subdivision's energy or
568568 34 water consumption, wastewater usage costs, or operating costs if, after
569569 35 review of the report described in section 6 of this chapter, the
570570 36 governing body finds:
571571 37 (1) in the case of conservation measures other than those that are
572572 38 part of a project related to the alteration of a water or wastewater
573573 39 structure or system, that the amount the governing body would
574574 40 spend on the conservation measures under the contract and that
575575 41 are recommended in the report is not likely to exceed the amount
576576 42 to be saved in energy consumption costs and other operating costs
577577 2025 IN 93—LS 6394/DI 141 14
578578 1 over twenty (20) years from the date of installation if the
579579 2 recommendations in the report were followed;
580580 3 (2) in the case of conservation measures that are part of a project
581581 4 related to the alteration of a water or wastewater structure or
582582 5 system, that the amount the governing body would spend on the
583583 6 conservation measures under the contract and that are
584584 7 recommended in the report is not likely to exceed the amount of
585585 8 increased billable revenues or the amount to be saved in energy
586586 9 and water consumption costs, wastewater usage costs, and other
587587 10 operating costs over twenty (20) years from the date of
588588 11 installation if the recommendations in the report were followed;
589589 12 and
590590 13 (3) in the case of a guaranteed savings contract, the qualified
591591 14 provider provides a written guarantee as described in subsection
592592 15 (d)(3).
593593 16 (b) Before entering into an agreement to participate in a utility
594594 17 efficiency program or a guaranteed savings contract under this section,
595595 18 the governing body must publish notice under subsection (c)
596596 19 indicating:
597597 20 (1) that the governing body is requesting public utilities or
598598 21 qualified providers to propose conservation measures through:
599599 22 (A) a utility efficiency program; or
600600 23 (B) a guaranteed savings contract; and
601601 24 (2) the date, the time, and the place where proposals must be
602602 25 received.
603603 26 (c) The notice required by subsection (b) must be published two (2)
604604 27 times with at least one (1) week between publications:
605605 28 (1) with each publication of notice in accordance with IC 5-3-1-1
606606 29 in two (2) newspapers of general circulation in the county where
607607 30 the school corporation or the political subdivision is located; or
608608 31 (2) with the first publication of notice in the newspapers
609609 32 described in subdivision (1) and the second publication of notice:
610610 33 (A) in accordance with IC 5-3-5; and
611611 34 (B) on the official web site website of the school corporation
612612 35 or the political subdivision.
613613 36 The second publication must be made at least thirty (30) days before
614614 37 the date by which proposals must be received.
615615 38 (d) An agreement to participate in a utility efficiency program or
616616 39 guaranteed savings contract under this section must provide that:
617617 40 (1) in the case of conservation measures other than those that are
618618 41 part of a project related to the alteration of a water or wastewater
619619 42 structure or system, all payments, except obligations upon the
620620 2025 IN 93—LS 6394/DI 141 15
621621 1 termination of the agreement or contract before the agreement or
622622 2 contract expires, may be made to the public utility or qualified
623623 3 provider (whichever applies) in installments, not to exceed the
624624 4 lesser of twenty (20) years or the average life of the conservation
625625 5 measures installed from the date of final installation;
626626 6 (2) in the case of conservation measures that are part of a project
627627 7 related to the alteration of a water or wastewater structure or
628628 8 system, all payments, except obligations upon the termination of
629629 9 the agreement or contract before the agreement or contract
630630 10 expires, may be made to the public utility or qualified provider
631631 11 (whichever applies) in installments, not to exceed the lesser of
632632 12 twenty (20) years or the average life of the conservation measures
633633 13 installed from the date of final installation;
634634 14 (3) in the case of the guaranteed savings contract:
635635 15 (A) the:
636636 16 (i) savings in energy and water consumption costs,
637637 17 wastewater usage costs, and other operating costs; and
638638 18 (ii) increase in billable revenues;
639639 19 due to the conservation measures are guaranteed to cover the
640640 20 costs of the payments for the measures; and
641641 21 (B) the qualified provider will reimburse the school
642642 22 corporation or political subdivision for the difference between
643643 23 the guaranteed savings and the actual savings; and
644644 24 (4) payments are subject to annual appropriation by the fiscal
645645 25 body of the school corporation or political subdivision and do not
646646 26 constitute an indebtedness of the school corporation or political
647647 27 subdivision within the meaning of a constitutional or statutory
648648 28 debt limitation.
649649 29 (e) An agreement or a contract under this chapter is subject to
650650 30 IC 5-16-7.3.
651651 31 SECTION 24. IC 36-7-12-20, AS AMENDED BY P.L.252-2015,
652652 32 SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
653653 33 JULY 1, 2025]: Sec. 20. (a) All tax revenues coming into possession
654654 34 of the economic development commission shall be deposited, held, and
655655 35 secured in accordance with the statutes relating to the handling and
656656 36 investing of public funds. The handling and expenditure of this money
657657 37 is subject to audit and supervision by the state board of accounts.
658658 38 (b) Contracts for construction and equipment of economic
659659 39 development or pollution control facilities need not be let in
660660 40 accordance with IC 5-16, IC 5-17, or any other statute relating to public
661661 41 contracts. However, the construction of waterworks facilities
662662 42 financed for the public purpose of providing reliable water service
663663 2025 IN 93—LS 6394/DI 141 16
664664 1 is subject to IC 5-16-7.3.
665665 2 (c) Any employee of the economic development commission
666666 3 authorized to receive, disburse, or in any other way handle money or
667667 4 negotiable securities of the commission shall execute a bond payable
668668 5 to the state, with surety to consist of a surety or guaranty corporation
669669 6 qualified to do business in the state. The bond must be in an amount
670670 7 determined by the commission, and must be conditioned upon the
671671 8 employee's faithful performance of the employee's duties and the
672672 9 accounting for all monies and property that may come into the
673673 10 employee's hands or under the employee's control. The cost of these
674674 11 bonds shall be paid by the commission.
675675 12 SECTION 25. IC 36-7-14-12.5 IS ADDED TO THE INDIANA
676676 13 CODE AS A NEW SECTION TO READ AS FOLLOWS
677677 14 [EFFECTIVE JULY 1, 2025]: Sec. 12.5. IC 5-16-7.3 applies to:
678678 15 (1) a person that enters into a contract with a redevelopment
679679 16 commission to perform construction work referred to in
680680 17 section 12.2(a)(4), 12.2(a)(7), 12.2(a)(21), or 12.2(a)(22) of this
681681 18 chapter; and
682682 19 (2) a subcontractor of a person described in subdivision (1);
683683 20 with respect to the construction work referred to in subdivision (1).
684684 21 SECTION 26. IC 36-7.5-2-8, AS AMENDED BY P.L.10-2019,
685685 22 SECTION 136, IS AMENDED TO READ AS FOLLOWS
686686 23 [EFFECTIVE JULY 1, 2025]: Sec. 8. (a) Except as provided in
687687 24 subsection (c), the development authority must comply with
688688 25 IC 5-16-7.3 (common construction wage), IC 5-22 (public
689689 26 purchasing), IC 36-1-12 (public work projects), and any applicable
690690 27 federal bidding statutes and regulations. An eligible political
691691 28 subdivision that receives a loan, a grant, or other financial assistance
692692 29 from the development authority or enters into a lease with the
693693 30 development authority must comply with applicable federal, state, and
694694 31 local public purchasing and bidding law and regulations. However, a
695695 32 purchasing agency (as defined in IC 5-22-2-25) of an eligible political
696696 33 subdivision may:
697697 34 (1) assign or sell a lease for property to the development
698698 35 authority; or
699699 36 (2) enter into a lease for property with the development authority;
700700 37 at any price and under any other terms and conditions as may be
701701 38 determined by the eligible political subdivision and the development
702702 39 authority. However, before making an assignment or sale of a lease or
703703 40 entering into a lease under this section that would otherwise be subject
704704 41 to IC 5-22, the eligible political subdivision or its purchasing agent
705705 42 must obtain or cause to be obtained a purchase price for the property
706706 2025 IN 93—LS 6394/DI 141 17
707707 1 to be subject to the lease from the lowest responsible and responsive
708708 2 bidder in accordance with the requirements for the purchase of supplies
709709 3 under IC 5-22.
710710 4 (b) In addition to the provisions of subsection (a), with respect to
711711 5 projects undertaken by the authority, the authority shall set a goal for
712712 6 participation by minority business enterprises of fifteen percent (15%)
713713 7 and women's business enterprises of five percent (5%), consistent with
714714 8 the goals of delivering the project on time and within the budgeted
715715 9 amount and, insofar as possible, using Indiana businesses for
716716 10 employees, goods, and services. In fulfilling the goal, the authority
717717 11 shall take into account historical precedents in the same market.
718718 12 (c) As an alternative to IC 36-1-12, the development authority may
719719 13 utilize and may comply with:
720720 14 (1) IC 5-16;
721721 15 (2) IC 5-23;
722722 16 (3) IC 5-30;
723723 17 (4) IC 5-32; or
724724 18 (5) any combination of the articles listed in subdivisions (1)
725725 19 through (4) as determined by the development authority as
726726 20 appropriate;
727727 21 when acquiring, financing, and constructing a public work that is a
728728 22 development project (as defined in IC 36-7.5-4.5-5).
729729 23 (d) The development authority may:
730730 24 (1) contract with;
731731 25 (2) assign to; or
732732 26 (3) delegate to;
733733 27 a commuter transportation district to perform any duties and exercise
734734 28 any powers of the development authority under this chapter.
735735 29 SECTION 27. IC 36-7.5-4-3, AS AMENDED BY P.L.189-2018,
736736 30 SECTION 174, IS AMENDED TO READ AS FOLLOWS
737737 31 [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) Subject to subsection (h),
738738 32 the development authority may issue bonds for the purpose of obtaining
739739 33 money to pay the cost of:
740740 34 (1) acquiring real or personal property, including existing capital
741741 35 improvements;
742742 36 (2) acquiring, constructing, improving, reconstructing, or
743743 37 renovating one (1) or more projects; or
744744 38 (3) funding or refunding bonds issued under this chapter or
745745 39 IC 8-5-15, IC 8-22-3, or IC 36-9-3 or prior law.
746746 40 (b) The bonds are payable solely from:
747747 41 (1) the lease rentals from the lease of the projects for which the
748748 42 bonds were issued, insurance proceeds, and any other funds
749749 2025 IN 93—LS 6394/DI 141 18
750750 1 pledged or available; and
751751 2 (2) except as otherwise provided by law, revenue received by the
752752 3 development authority and amounts deposited in the development
753753 4 authority revenue fund.
754754 5 (c) The bonds shall be authorized by a resolution of the
755755 6 development board.
756756 7 (d) The terms and form of the bonds shall either be set out in the
757757 8 resolution or in a form of trust indenture approved by the resolution.
758758 9 (e) The bonds shall mature within forty (40) years.
759759 10 (f) The board shall sell the bonds only to the Indiana finance
760760 11 authority established by IC 5-1.2-3 upon the terms determined by the
761761 12 development board and the Indiana finance authority.
762762 13 (g) All money received from any bonds issued under this chapter
763763 14 shall be applied solely to the payment of the cost of acquiring,
764764 15 constructing, improving, reconstructing, or renovating one (1) or more
765765 16 projects, or the cost of refunding or refinancing outstanding bonds, for
766766 17 which the bonds are issued. The cost may include:
767767 18 (1) planning and development of equipment or a facility and all
768768 19 buildings, facilities, structures, equipment, and improvements
769769 20 related to the facility;
770770 21 (2) acquisition of a site and clearing and preparing the site for
771771 22 construction;
772772 23 (3) equipment, facilities, structures, and improvements that are
773773 24 necessary or desirable to make the project suitable for use and
774774 25 operations;
775775 26 (4) architectural, engineering, consultant, and attorney's fees;
776776 27 (5) incidental expenses in connection with the issuance and sale
777777 28 of bonds;
778778 29 (6) reserves for principal and interest;
779779 30 (7) interest during construction;
780780 31 (8) financial advisory fees;
781781 32 (9) insurance during construction;
782782 33 (10) municipal bond insurance, debt service reserve insurance,
783783 34 letters of credit, or other credit enhancement; and
784784 35 (11) in the case of refunding or refinancing, payment of the
785785 36 principal of, redemption premiums (if any) for, and interest on,
786786 37 the bonds being refunded or refinanced.
787787 38 (h) After June 30, 2025, the development authority may not
788788 39 issue bonds under this article unless the development authority
789789 40 first finds that each contract for the construction of a facility and
790790 41 all buildings, facilities, structures, and improvements related to
791791 42 that facility to be financed in whole or in part through the issuance
792792 2025 IN 93—LS 6394/DI 141 19
793793 1 of the bonds requires payment of the common construction wage
794794 2 required by IC 5-16-7.3.
795795 3 SECTION 28. IC 36-7.6-2-13, AS AMENDED BY P.L.252-2015,
796796 4 SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
797797 5 JULY 1, 2025]: Sec. 13. (a) A development authority shall comply with
798798 6 IC 5-16-7.3 (common construction wage), IC 5-22 (public
799799 7 purchasing), IC 36-1-12 (public work projects), and any applicable
800800 8 federal bidding statutes and regulations. An eligible political
801801 9 subdivision that receives a loan, a grant, or other financial assistance
802802 10 from a development authority or enters into a lease with a development
803803 11 authority must comply with applicable federal, state, and local public
804804 12 purchasing and bidding laws and regulations. However, a purchasing
805805 13 agency (as defined in IC 5-22-2-25) of an eligible political subdivision
806806 14 may:
807807 15 (1) assign or sell a lease for property to a development authority;
808808 16 or
809809 17 (2) enter into a lease for property with a development authority;
810810 18 at any price and under any other terms and conditions as may be
811811 19 determined by the eligible political subdivision and the development
812812 20 authority. However, before making an assignment or a sale of a lease
813813 21 or entering into a lease under this section that would otherwise be
814814 22 subject to IC 5-22, the eligible political subdivision or its purchasing
815815 23 agent must obtain or cause to be obtained a purchase price for the
816816 24 property to be subject to the lease from the lowest responsible and
817817 25 responsive bidder in accordance with the requirements for the purchase
818818 26 of supplies under IC 5-22.
819819 27 (b) In addition to the provisions of subsection (a), with respect to
820820 28 projects undertaken by a development authority, the development
821821 29 authority shall set a goal for participation by minority business
822822 30 enterprises and women's business enterprises. The goals must be
823823 31 consistent with:
824824 32 (1) the participation goals established by the counties and
825825 33 municipalities that are members of the development authority;
826826 34 and
827827 35 (2) the goals of delivering the project on time and within the
828828 36 budgeted amount and, insofar as possible, using Indiana
829829 37 businesses for employees, goods, and services.
830830 38 SECTION 29. IC 36-7.6-4-3, AS AMENDED BY P.L.178-2015,
831831 39 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
832832 40 JULY 1, 2025]: Sec. 3. (a) Subject to subsection (i), a development
833833 41 authority may issue bonds for the purpose of obtaining money to pay
834834 42 the cost of:
835835 2025 IN 93—LS 6394/DI 141 20
836836 1 (1) acquiring real or personal property, including existing capital
837837 2 improvements;
838838 3 (2) acquiring, constructing, improving, reconstructing, or
839839 4 renovating one (1) or more projects; or
840840 5 (3) funding or refunding bonds issued under this chapter,
841841 6 IC 8-5-15, IC 8-22-3, IC 36-9-3, or prior law.
842842 7 (b) The bonds are payable solely from:
843843 8 (1) the lease rentals from the lease of the projects for which the
844844 9 bonds were issued, insurance proceeds, and any other funds
845845 10 pledged or available; and
846846 11 (2) except as otherwise provided by law, revenue received by the
847847 12 development authority and amounts deposited in the development
848848 13 authority fund.
849849 14 (c) The bonds must be authorized by a resolution of the
850850 15 development board of the development authority that issues the bonds.
851851 16 (d) The terms and form of the bonds must either be set out in the
852852 17 resolution or in a form of trust indenture approved by the resolution.
853853 18 (e) The bonds must mature within forty (40) years.
854854 19 (f) A development board shall sell the bonds only to the Indiana
855855 20 bond bank established by IC 5-1.5-2-1 upon the terms determined by
856856 21 the development board and the Indiana bond bank.
857857 22 (g) All money received from any bonds issued under this chapter
858858 23 shall be applied solely to the payment of the cost of acquiring,
859859 24 constructing, improving, reconstructing, or renovating one (1) or more
860860 25 projects, or the cost of refunding or refinancing outstanding bonds, for
861861 26 which the bonds are issued. The cost may include:
862862 27 (1) planning and development of equipment or a facility and all
863863 28 buildings, facilities, structures, equipment, and improvements
864864 29 related to the facility;
865865 30 (2) acquisition of a site and clearing and preparing the site for
866866 31 construction;
867867 32 (3) equipment, facilities, structures, and improvements that are
868868 33 necessary or desirable to make the project suitable for use and
869869 34 operations;
870870 35 (4) architectural, engineering, consultant, and attorney's fees;
871871 36 (5) incidental expenses in connection with the issuance and sale
872872 37 of bonds;
873873 38 (6) reserves for principal and interest;
874874 39 (7) interest during construction;
875875 40 (8) financial advisory fees;
876876 41 (9) insurance during construction;
877877 42 (10) municipal bond insurance, debt service reserve insurance,
878878 2025 IN 93—LS 6394/DI 141 21
879879 1 letters of credit, or other credit enhancement; and
880880 2 (11) in the case of refunding or refinancing, payment of the
881881 3 principal of, redemption premiums (if any) for, and interest on the
882882 4 bonds being refunded or refinanced.
883883 5 (h) A development authority may not issue bonds under this article
884884 6 or otherwise finance debt unless:
885885 7 (1) the development authority enters into an interlocal agreement
886886 8 with each member that is committing funds to a project to be
887887 9 supported by the bonds; and
888888 10 (2) the fiscal body of each member that is committing funds to the
889889 11 project to be supported by the bonds approves the agreement
890890 12 described in subdivision (1) by ordinance.
891891 13 (i) After June 30, 2025, a development authority may not issue
892892 14 bonds under this article unless the development authority first
893893 15 finds that each contract for the construction of a facility and all
894894 16 buildings, facilities, structures, and improvements related to that
895895 17 facility to be financed in whole or in part through the issuance of
896896 18 the bonds requires payment of the common construction wage
897897 19 required by IC 5-16-7.3.
898898 20 SECTION 30. IC 36-9-23-2, AS AMENDED BY P.L.252-2015,
899899 21 SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
900900 22 JULY 1, 2025]: Sec. 2. A municipality may:
901901 23 (1) acquire, construct, improve, operate, and maintain sewage
902902 24 works under this chapter;
903903 25 (2) acquire, by gift, grant, purchase, condemnation, or otherwise,
904904 26 all lands, rights-of-way, and other property that are necessary for
905905 27 the sewage works;
906906 28 (3) issue revenue bonds to pay the cost of acquiring, constructing,
907907 29 and improving the sewage works and property; and
908908 30 (4) lease sewage works from a person, an entity, a corporation, a
909909 31 public utility, or a unit for a term not to exceed fifty (50) years.
910910 32 A sewage works leased under this section is subject to IC 5-16-7.3.
911911 2025 IN 93—LS 6394/DI 141