February 26, 2003
HOUSE BILL No. 1468
_____
DIGEST OF HB 1468
(Updated February 25, 2003 10:36 AM - DI 103)
Citations Affected: IC 4-13.6; IC 5-22.
Synopsis: Indiana business purchasing preferences. Provides a 5%
price preference to Indiana businesses for public works and
procurement contracts awarded by the state. Provides that a purchasing
preference does not apply to the detriment of a business from a state
bordering Indiana, if the bordering state does not provide purchasing
preferences to its businesses more favorable to preferences provided to
Indiana businesses by Indiana law. Provides that if a governmental
body adopts a retaliatory purchasing preference, the preference may not
apply to the detriment of the businesses of a bordering state if the
bordering state does not provide purchasing preferences to its
businesses more favorable to preferences provided to Indiana
businesses by Indiana law. Provides that to be considered responsible,
an offeror for a purchase by the state that is required to register with the
secretary of state must have registered not later than 45 days before the
solicitation for the purchase is issued.
Effective: July 1, 2003.
Mays, Whetstone, Grubb
January 15, 2003, read first time and referred to Committee on Commerce and Economic
Development.
February 25, 2003, amended, reported _ Do Pass. Recommitted to Committee on Ways
and Means.
February 26, 2003
First Regular Session 113th General Assembly (2003)
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HOUSE BILL No. 1468
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-13.6-6-2; (03)HB1468.1.1. -->
SECTION 1. IC 4-13.6-6-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. Except as provided
in section 2.7 of this chapter or in rules adopted under section 2.5 of
this chapter, the division shall award a contract to the lowest
responsible and responsive contractor.
SOURCE: IC 4-13.6-6-2.7; (03)HB1468.1.2. -->
SECTION 2. IC 4-13.6-6-2.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 2.7. (a) As used in this section,
"Indiana business" refers to any of the following:
(1) A business whose principal place of business is located in
Indiana.
(2) A business that pays a majority of its payroll (in dollar
volume) to residents of Indiana.
(3) A business that employs Indiana residents as a majority of
its employees.
(4) A business that makes significant capital investments in
Indiana.
(5) A business that has a substantial positive economic impact
on Indiana.
(b) The Indiana department of administration shall consult with
the department of commerce in developing criteria for determining
whether a business is an Indiana business under subsection (a). The
Indiana department of administration may consult with the
department of commerce to determine whether a particular
business meets the requirements of this section and the criteria
developed under this subsection.
(c) There is a price preference of five percent (5%) for a
contractor that is an Indiana business.
(d) A contractor who wants to claim a preference provided
under this section must state in the contractor's bid that it claims
the preference provided by this section.
(e) The division shall compute a preference under this section in
the same manner that a preference is computed under IC 5-22-15.
(f) Notwithstanding subsection (c), the division shall award a
contract to the lowest responsive and responsible contractor,
regardless of the preference provided in this section, if the
contractor is:
(1) an Indiana contractor; or
(2) a contractor:
(A) from a state bordering Indiana; and
(B) the contractor's home state does not provide a
preference to the home state's contractors more favorable
than is provided by Indiana law to Indiana contractors.
SOURCE: IC 5-22-15-20; (03)HB1468.1.3. -->
SECTION 3. IC 5-22-15-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 20. (a) This section
does not apply to the state lottery commission created by IC 4-30-3-1.
(b) As used in this section, "out-of-state business" refers to a
business that is not an Indiana business.
(c) A governmental body may adopt rules to give a preference to an
Indiana business that submits an offer for a purchase under this article
if all of the following apply:
(1) An out-of-state business submits an offer for the purchase.
(2) The out-of-state business is a business from a state that gives
purchase preferences unfavorable to Indiana businesses.
(d) Rules adopted under subsection (c) must establish criteria for
determining the following:
(1) Whether an offeror qualifies as an Indiana business under the
rules.
(2) When another state's preference is unfavorable to Indiana
businesses.
(3) The method by which the preference for Indiana businesses is
to be computed.
(e) Rules adopted under subsection (c) may not give a preference to
an Indiana business that is more favorable to the Indiana business than
the other state's preference is to the other state's businesses.
(f) Rules adopted under subsection (c) must provide that a
contract shall be awarded to the lowest responsive and responsible
offeror, regardless of the preference provided under this section,
if the offeror is:
(1) an Indiana business; or
(2) a business:
(A) from a state bordering Indiana; and
(B) the contractor's home state does not provide a
preference to the home state's businesses more favorable
than is provided by Indiana law to Indiana businesses.
SOURCE: IC 5-22-15-20.5; (03)HB1468.1.4. -->
SECTION 4. IC 5-22-15-20.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 20.5. (a) This section applies only
to a contract awarded by a state agency.
(b) As used in this section, "Indiana business" refers to any of
the following:
(1) A business whose principal place of business is located in
Indiana.
(2) A business that pays a majority of its payroll (in dollar
volume) to residents of Indiana.
(3) A business that employs Indiana residents as a majority of
its employees.
(4) A business that makes significant capital investments in
Indiana.
(5) A business that has a substantial positive economic impact
on Indiana as defined by criteria developed under subsection
(c).
(c) The Indiana department of administration shall consult with
the department of commerce in developing criteria for determining
whether a business is an Indiana business under subsection (a). The
Indiana department of administration may consult with the
department of commerce to determine whether a particular
business meets the requirements of this section and the criteria
developed under this subsection.
(d) There is a price preference of five percent (5%) for supplies
purchased from an Indiana business.
(e) Notwithstanding subsection (d), a state agency shall award
a contract to the lowest responsive and responsible offeror,
regardless of the preference provided in this section, if the offeror
is:
(1) an Indiana business; or
(2) a business:
(A) from a state bordering Indiana; and
(B) the business's home state does not provide a preference
to the home state's businesses more favorable than is
provided by Indiana law to Indiana businesses.
SOURCE: IC 5-22-16-4; (03)HB1468.1.5. -->
SECTION 5. IC 5-22-16-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. (a) An offeror that
is a foreign corporation must be registered with the secretary of state
to do business in Indiana in order to be considered responsible.
(b)
Except as provided in subsection (c), the purchasing agent may
award a contract to an offeror pending the offeror's registration with the
secretary of state. If, in the judgment of the purchasing agent, the
offeror has not registered within a reasonable period, the purchasing
agent shall cancel the contract. An offeror has no cause of action based
on the cancellation of a contract under this subsection.
(c) This subsection applies only to a contract awarded by a state
agency. In order to be considered responsible, an offeror that is a
business required to register with the secretary of state must have
registered with the secretary of state not later than forty-five (45)
days before the solicitation for the purchase was issued.