Introduced Version
HOUSE BILL No. 1215
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-22.
Synopsis: Review of privatization savings. Requires the state's
procurement practices to be supportive of retention and creation of jobs
in Indiana. Provides that a contract or solicitation for a contract to
privatize any of the functions performed by a governmental body's
employees resulting in the layoff or dismissal of any employees must:
(1) require an offeror to provide verifiable evidence that the cost of the
contract will be less than the cost of having the functions performed by
the governmental body's employees; (2) specify that the governmental
body may not pay the contractor more than the cost the governmental
body determines the governmental body would incur to perform the
functions using its employees; (3) require the governmental body to
provide to an offeror an estimate of the cost of having the functions
performed by the governmental body's employees; and (4) contain a
statement that the governmental body may pursue certain remedies if
the contractor fails to comply with the contract. Permits the
governmental body's employees to submit an offer to perform the
functions, and provides an absolute price preference for the employees
if the bid they offer is below the current cost of the function. Excludes
from these requirements purchases from qualified nonprofit agencies
for persons with severe disabilities.
Effective: July 1, 2005.
Dickinson
January 6, 2005, read first time and referred to Committee on Government and Regulatory
Reform.
Introduced
First Regular Session 114th General Assembly (2005)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
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between statutes enacted by the 2004 Regular Session of the General Assembly.
HOUSE BILL No. 1215
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 5-22-3-6.5; (05)IN1215.1.1. -->
SECTION 1. IC 5-22-3-6.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]: Sec. 6.5. The state's procurement practices must be
supportive of retention and creation of jobs in Indiana.
SOURCE: IC 5-22-3-7; (05)IN1215.1.2. -->
SECTION 2. IC 5-22-3-7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]: Sec. 7. (a) This section applies to a solicitation for a
contract that requires the contractor to perform any of a
governmental body's functions that are performed at the time of
the solicitation by the governmental body's employees.
(b) A representative of any group of the governmental body's
employees may submit, in response to a solicitation described in
subsection (a), an offer for the group of employees to perform the
functions that are the subject of the solicitation.
SOURCE: IC 5-22-5-9; (05)IN1215.1.3. -->
SECTION 3. IC 5-22-5-9 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]:
Sec. 9. (a) This section applies to a solicitation for a
contract that requires the contractor to perform any of a
governmental body's functions that:
(1) are performed at the time of the solicitation by the
governmental body's employees; and
(2) would result in the layoff or dismissal of any of the
governmental body's employees.
This section does not apply to a purchase under IC 5-22-13.
(b) A solicitation described in subsection (a) must include the
following:
(1) An estimate of the cost the governmental body would incur
in performing the functions covered by the contract with the
governmental body's employees during the period comprising
the term of the proposed contract. The estimate must include:
(A) labor;
(B) overhead;
(C) administrative costs;
(D) equipment;
(E) supplies; and
(F) any other costs.
(2) A requirement that the offeror must provide objective,
verifiable evidence that:
(A) is satisfactory to the governmental body; and
(B) demonstrates that if the offeror is awarded the
contract, the cost of the contract over the term of the
contract will be less than the amount described in
subdivision (1).
(3) A statement that the contract between the governmental
body and the offeror must contain a provision that the
governmental body may not pay to the offeror, over the term
of the contract, more than the amount described in
subdivision (1).
(4) A statement that the contract between the governmental
body and the offeror may provide for:
(A) the deposit of surety bonds;
(B) the making of good faith deposits;
(C) liquidated damages;
(D) the right of reversion or repurchase; or
(E) other rights and remedies;
if the offeror fails to comply with the contract.
SOURCE: IC 5-22-13-5; (05)IN1215.1.4. -->
SECTION 4. IC 5-22-13-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 5. (a) Supplies and
services purchased under this chapter must:
(1) meet the specifications and needs of the purchasing
governmental body; and
(2) be purchased at a fair market price.
(b) Supplies and services purchased under this chapter are not
subject to IC 5-22-5-9.
SOURCE: IC 5-22-15-26; (05)IN1215.1.5. -->
SECTION 5. IC 5-22-15-26 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]: Sec. 26. (a) As used in this section, "employee group"
refers to a group of employees responding to a solicitation under
5-22-3-7.
(b) There is an absolute price preference for an employee group
that submits a bid that meets the qualifications of IC 5-22-16-7(b).
SOURCE: IC 5-22-16-7; (05)IN1215.1.6. -->
SECTION 6. IC 5-22-16-7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]: Sec. 7. (a) This section applies to a solicitation for a
contract that requires the contractor to perform any of a
governmental body's functions that:
(1) are performed at the time of the solicitation by the
governmental body's employees; and
(2) would result in the layoff or dismissal of any of the
governmental body's employees.
This section does not apply to a purchase under IC 5-22-13.
(b) An offeror may not be considered responsive to a solicitation
described in subsection (a) if the offeror does not provide objective,
verifiable evidence that:
(1) is satisfactory to the governmental body; and
(2) demonstrates that, if the offeror is awarded the contract,
the cost of the contract over the term of the contract will be
less than the cost the governmental body estimates the
governmental body would incur in performing the functions
covered by the contract with the governmental body's
employees during the period comprising the term of the
proposed contract.
SOURCE: IC 5-22-17-15; (05)IN1215.1.7. -->
SECTION 7. IC 5-22-17-15 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]:
Sec. 15. (a) This section applies to a contract that requires
the contractor to perform any of a governmental body's functions
that:
(1) are performed at the time of the solicitation for the
contract by the governmental body's employees; and
(2) would result in the layoff or dismissal of any of the
governmental body's employees.
This section does not apply to a purchase under IC 5-22-13.
(b) A contract referred to in subsection (a) must contain the
statement described in IC 5-22-5-9(b)(3).