Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 4-3-19-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 23. A person who
believes that a department has violated IC 8-23-9, IC 8-23-11,
IC 36-1-12-3, or IC 36-1-12-3.1 may file a written complaint with the
board. The complaint must set forth the alleged violation.
SECTION 2. IC 4-3-19-28 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 28. The opinion issued under section 27 of this chapter must:
(1) state whether the department has violated IC 8-23-9, IC 8-23-11,
or IC 36-1-12-3, or IC 36-1-12-3.1; and
(2) be forwarded to the person who filed the complaint and the department not later than sixty (60) days after the hearing is conducted.
SECTION 3. IC 5-11-1-26 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 26. (a) If a state office, municipality, or other entity has authority to contract for the construction, reconstruction, alteration, repair, improvement, or maintenance of a public work, the state board of accounts shall include in each examination report concerning the state office, municipality, or entity:
(1) an opinion concerning whether the state office, municipality, or entity has complied with IC 5-16-8; and
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.
(c) 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 fifty thousand dollars ($50,000).
(d) 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), seventy-five thousand
dollars ($75,000), 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.
(e) If a public works project involves a structure, an improvement, or a facility under the control of a department (as defined in IC 4-3-19-2(2)), the department may not artificially divide the project to bring any part of the project under this section.
SECTION 5. IC 36-1-12-3.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3.1. (a) This section applies to a municipality or a county.
(b) The board may purchase or lease materials in the manner provided in IC 5-22 and perform a public work, by means of the board's own workforce, in the construction, maintenance, and repair of a highway, a street, an alley, a road, or a bridge within the jurisdiction of the municipality or county without awarding a contract if the cost of the public work project is estimated to be less than one hundred fifty thousand dollars ($150,000).
(c) The workforce of a municipality or county may perform a public work described in subsection (b) 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 whose cost is estimated to be more than one hundred thousand dollars ($100,000), the board:
(A) publishes a notice pursuant to 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 (d); 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.
(d) For purposes of this section, the cost of a public work project includes:
(1) the actual cost of materials, labor, equipment, and rental used in;
(2) a reasonable rate for trucks and heavy equipment that are owned by the municipality or county and are used in; and
(3) other expenses incidental to;
the performance of the project.
(e) A public work project performed by a board's own workforce shall be inspected and accepted as complete in the same manner as a public work project performed pursuant to a contract awarded after receiving bids.
SECTION 6. IC 36-1-12-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 14. (a) This section applies to public work contracts in excess of one hundred thousand dollars ($100,000) for projects other than highways, roads, streets, alleys, bridges, and appurtenant structures situated on streets, alleys, and dedicated highway rights-of-way. This section also applies to a lessor corporation qualifying under IC 21-5-11 or IC 21-5-12 or any other lease-back arrangement containing an option to purchase, notwithstanding the statutory provisions governing those leases.
(b) A board that enters into a contract for public work, and a contractor who subcontracts parts of that contract, shall include in their respective contracts provisions for the retainage of portions of payments by the board to contractors, by contractors to subcontractors, and for the payment of subcontractors.
Either the board or At the
discretion of the contractor, or both, shall place the retainage shall
either be held by the board or be placed in an escrow account, with
a bank, savings and loan institution, or the state as the escrow agent.
The escrow agent shall be selected by mutual agreement between board
and contractor or contractor and subcontractor under a written
agreement among the bank or savings and loan institution and:
(1) the board and the contractor; or
(2) the subcontractor and the contractor.
The board shall not be required to pay interest on the amounts of
retainage that it holds under this section.
(c) To determine the amount of retainage to be withheld, the board shall:
(1) withhold no more than ten percent (10%) of the dollar value of all work satisfactorily completed until the public work is fifty percent (50%) completed, and nothing further after that; or
(2) withhold no more than five percent (5%) of the dollar value of all work satisfactorily completed until the public work is substantially completed.
If upon substantial completion of the public work minor items remain uncompleted, an amount computed under subsection (f)
of this section
shall be withheld until those items are completed.
(d) The escrow agreement must contain the following provisions:
(1) The escrow agent shall invest all escrowed principal in obligations selected by the escrow agent.
(2) The escrow agent shall hold the escrowed principal and income until receipt of notice from the board and the contractor, or the contractor and the subcontractor, specifying the part of the escrowed principal to be released from the escrow and the person to whom that portion is to be released. After receipt of the notice, the escrow agent shall remit the designated part of escrowed principal and the same proportion of then escrowed income to the person specified in the notice.
(3) The escrow agent shall be compensated for the agent's services. The parties may agree on a reasonable fee comparable with fees being charged for the handling of escrow accounts of similar size and duration. The fee shall be paid from the escrowed income.
The escrow agreement may include other terms and conditions consistent with this subsection, including provisions authorizing the escrow agent to commingle the escrowed funds with funds held in other escrow accounts and limiting the liability of the escrow agent.
(e) The contractor shall furnish the board with a performance bond equal to the contract price. If acceptable to the board, the performance bond may provide for incremental bonding in the form of multiple or chronological bonds that, when taken as a whole, equal the contract price. The surety on the performance bond may not be released until one (1) year after the date of the board's final settlement with the contractor. The performance bond must specify that:
(1) a modification, omission, or addition to the terms and conditions of the public work contract, plans, specifications, drawings, or profile;