Introduced Version
SENATE BILL No. 456
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 2-5-1.1-11.5; IC 4-13.6-6-2.7; IC 5-22;
IC 8-10-1-7.7; IC 8-23-9-4.7; IC 20-12-78; IC 24-4.5-8.
Synopsis: Outsourcing relief. Requires approval by the legislative
council of state contracts that: (1) result in outsourced employees; and
(2) total at least $10 million. Provides that a contract entered into by a
state agency may not be for a period of more than four years unless a
statute specifically provides otherwise. Requires a state agency to
award contracts to Indiana businesses unless the Indiana business: (1)
is not the lowest bidder; or (2) cannot perform the contract. Requires
a person that bids on a state contract to disclose certain information
concerning outsourced workers to the Indiana department of
administration. Requires a financial institution to defer principal
payments for up to 12 months on a mortgage or vehicle loan held by an
outsourced employee of the state or a state educational institution.
Requires the state student assistance commission to administer a
program of low interest loans to outsourced employees or dependents
of outsourced employees who are full-time students at a state
educational institution to pay tuition and regularly assessed fees.
Effective: July 1, 2007.
Simpson
January 16, 2007, read first time and referred to Committee on Tax and Fiscal Policy.
Introduced
First Regular Session 115th General Assembly (2007)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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SENATE BILL No. 456
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 2-5-1.1-11.5; (07)IN0456.1.1. -->
SECTION 1. IC 2-5-1.1-11.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]:
Sec. 11.5. A contract that satisfies the
following conditions must be approved by the legislative council:
(1) The contract is entered into by:
(A) a state agency (as defined in IC 4-13-1-1);
(B) a state educational institution (as defined in
IC 20-12-0.5-1);
(C) the Indiana department of transportation established
by IC 8-23-2-1; or
(D) the Indiana port commission established under
IC 8-10-1.
(2) The contract:
(A) requires a nongovernmental entity to perform certain
state functions, including any function of an entity listed in
subdivision (1); and
(B) results in the termination from employment of an
employee in a particular departmental, occupational, or
other definable classification.
(3) The total value of the supplies or services that are the
subject of the contract is at least ten million dollars
($10,000,000).
SOURCE: IC 4-13.6-6-2.7; (07)IN0456.1.2. -->
SECTION 2. IC 4-13.6-6-2.7, AS AMENDED BY P.L.4-2005,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: 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) For purposes of this section, "outsourced employee" means
an employee in a particular departmental, occupational, or other
definable classification who is terminated from employment as the
result of:
(1) a lease or other transfer of state or state educational
institution property to a nongovernmental entity; or
(2) a contractual arrangement with a nongovernmental entity
to perform certain state or state educational institution
functions.
(b) (c) The department shall consult with the Indiana economic
development corporation in developing criteria for determining
whether a business is an Indiana business under subsection (a). The
department may consult with the Indiana economic development
corporation to determine whether a particular business meets the
requirements of this section and the criteria developed under this
subsection.
(c) There are the following price preferences for a contractor that is
an Indiana business:
(1) Five percent (5%) for a contract expected by the division to be
less than five hundred thousand dollars ($500,000).
(2) Three percent (3%) for a contract expected by the division to
be at least five hundred thousand dollars ($500,000) but less than
one million dollars ($1,000,000).
(3) One percent (1%) for a contract expected by the division to be
at least one million dollars ($1,000,000).
(d) The division shall compute a preference under this section in the
same manner that a preference is computed under IC 5-22-15. (e)
Notwithstanding subsection (c),
(d) The division shall award a contract to
the lowest responsive and
responsible contractor, regardless of the preference provided in this
section, if: (1) the contractor is an Indiana
contractor or (2) the
contractor is a contractor from a state bordering Indiana and 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. business unless the Indiana business:
(1) is not the lowest responsive and responsible contractor; or
(2) is otherwise unable to perform the contract.
(f) (e) A contractor that
wants to claim a preference provided under
this section submits a bid must
do all of the following: (1) State in the
contractor's bid that the contractor claims the preference provided by
this section. (2) provide the following information to the department:
(A) (1) The location of the contractor's principal place of
business,
If the contractor claims the preference as an Indiana
business described in subsection (a)(1), including a statement
explaining the reasons the contractor considers the location
named as the contractor's principal place of business.
(B) (2) The amount of the contractor's total payroll and the
amount of the contractor's payroll paid to Indiana residents.
(C) (3) The number of the contractor's employees,
and including
the number of the contractor's employees who are:
(A) Indiana residents;
or
(B) outsourced employees.
(4) The percentage of the total bid price and the dollar
amount to be paid for services performed by individuals:
(A) outside Indiana but inside the United States; or
(B) outside the United States.
(5) The number of outsourced workers that the contractor
would hire to perform services under the contract and the
salaries or wages that the contractor would pay to the
outsourced workers.
(D) If the contractor claims the preference as an Indiana
business described in subsection (a)(4), a description of the
capital investments made in Indiana and a statement of the
amount of those capital investments.
(E) If the contractor claims the preference as an Indiana
business described in subsection (a)(5), a description of the
substantial positive economic impact the contractor has on
Indiana.
(g) This section expires July 1, 2009.
SOURCE: IC 5-22-6-3; (07)IN0456.1.3. -->
SECTION 3. IC 5-22-6-3 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]:
Sec. 3. (a) This section applies only to a contract for
services awarded by:
(1) a state agency; or
(2) a state educational institution.
(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.
(c) For purposes of this section, "outsourced employee" means
an employee in a particular departmental, occupational, or other
definable classification who is terminated from employment as the
result of:
(1) a lease or other transfer of state or state educational
institution property to a nongovernmental entity; or
(2) a contractual arrangement with a nongovernmental entity
to perform certain state or state educational institution
functions.
(d) The Indiana department of administration shall consult with
the Indiana economic development corporation in developing
criteria for determining whether a business is an Indiana business
under subsection (b). The Indiana department of administration
may consult with the Indiana economic development corporation
to determine whether a particular business meets the requirements
of this section and the criteria developed under this subsection.
(e) A state agency shall award a contract to an Indiana business
unless the Indiana business:
(1) is not the lowest responsive and responsible offeror; or
(2) is otherwise unable to perform the contract.
(f) A business that submits a bid for a contract must provide the
following information to the Indiana department of
administration:
(1) The location of the business's principal place of business,
including a statement explaining the reasons the business
considers the location named as the business's principal place
of business.
(2) The amount of the business's total payroll and the amount
of the business's payroll paid to Indiana residents.
(3) The number of the business's employees, including the
number of the business's employees who are:
(A) Indiana residents; or
(B) outsourced employees.
(4) The percentage of the total bid price and the dollar
amount to be paid for services performed by individuals:
(A) outside Indiana but inside the United States; or
(B) outside the United States.
(5) The number of outsourced workers that the contractor
would hire to perform services under the contract and the
salaries or wages that the contractor would pay to the
outsourced workers.
SOURCE: IC 5-22-15-20.5; (07)IN0456.1.4. -->
SECTION 4. IC 5-22-15-20.5, AS AMENDED BY P.L.4-2005,
SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: 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) For purposes of this section, "outsourced employee" means
an employee in a particular departmental, occupational, or other
definable classification who is terminated from employment as the
result of:
(1) a lease or other transfer of state or state educational
institution property to a nongovernmental entity; or
(2) a contractual arrangement with a nongovernmental entity
to perform certain state or state educational institution
functions.
(c) (d) The Indiana department of administration shall consult with
the Indiana economic development corporation in developing criteria
for determining whether a business is an Indiana business under
subsection (b). The Indiana department of administration may consult
with the Indiana economic development corporation to determine
whether a particular business meets the requirements of this section
and the criteria developed under this subsection.
(d) There are the following price preferences for supplies purchased
from an Indiana business:
(1) Five percent (5%) for a purchase expected by the state agency
to be less than five hundred thousand dollars ($500,000).
(2) Three percent (3%) for a purchase expected by the state
agency to be at least five hundred thousand dollars ($500,000) but
less than one million dollars ($1,000,000).
(3) One percent (1%) for a purchase expected by the state agency
to be at least one million dollars ($1,000,000).
(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: (1) the offeror is an Indiana
business
or (2) the offeror is a business from a state bordering Indiana
and 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. unless the Indiana business:
(1) is not the lowest responsive and responsible offeror; or
(2) is otherwise unable to perform the contract.
(f) A business that
wants to claim a preference provided under this
section must do all of the following: (1) State in the business's submits
a bid
that the business claims the preference provided by this section.
(2) for a contract with a state agency must provide the following
information to the
Indiana department
of administration:
(A) (1) The location of the business's principal place of business,
If the business claims the preference as an Indiana business
described in subsection (b)(1), including a statement explaining
the reasons the business considers the location named as the
business's principal place of business.
(B) (2) The amount of the business's total payroll and the amount
of the business's payroll paid to Indiana residents.
(C) (3) The number of the business's employees and the number
of the business's employees who are:
(A) Indiana residents;
or
(B) outsourced employees.
(4) The percentage of the total bid price and the dollar
amount to be paid for services performed by individuals:
(A) outside Indiana but inside the United States; or
(B) outside the United States.
(5) The number of outsourced workers that the contractor
would hire to perform services under the contract and the
salaries or wages that the contractor would pay to the
outsourced workers.
(D) If the business claims the preference as an Indiana
business described in subsection (b)(4), a description of the
capital investments made in Indiana and a statement of the
amount of those capital investments.
(E) If the business claims the preference as an Indiana
business described in subsection (b)(5), a description of the
substantial positive economic impact the business has on
Indiana.
(g) This section expires July 1, 2009.
SOURCE: IC 5-22-17-3.5; (07)IN0456.1.5. -->
SECTION 5. IC 5-22-17-3.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]: Sec. 3.5. (a) This section applies only to a contract entered
into by:
(1) a state agency;
(2) the Indiana department of transportation established
under IC 8-23-2-1; or
(3) the Indiana port commission established under IC 8-10-1.
(b) An entity listed in subsection (a) may not enter into a
contract for a period of more than four (4) years unless a statute
specifically provides otherwise.
SOURCE: IC 5-22-17-15; (07)IN0456.1.6. -->
SECTION 6. IC 5-22-17-15 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]: Sec. 15. (a) This section applies to a contract entered into
by:
(1) a state agency;
(2) the Indiana department of transportation established
under IC 8-23-2-1; or
(3) the Indiana port commission established under IC 8-10-1;
for the performance by a nongovernmental entity of any state
function.
(b) To the extent permitted by federal law, a contract must
provide that a state employee who is moved or transferred to a
nongovernmental entity retains for all purposes, after the move or
transfer, the years of service and seniority earned as a state
employee.
SOURCE: IC 8-10-1-7.7; (07)IN0456.1.7. -->
SECTION 7. IC 8-10-1-7.7 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]:
Sec. 7.7. (a) For purposes of 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.
(b) For purposes of this section, "outsourced employee" means
an employee in a particular departmental, occupational, or other
definable classification who is terminated from employment as the
result of:
(1) a lease or other transfer of state or state educational
institution property to a nongovernmental entity; or
(2) a contractual arrangement with a nongovernmental entity
to perform certain state or state educational institution
functions.
(c) The commission shall consult with the Indiana department
of administration and the Indiana economic development
corporation to:
(1) develop criteria for determining whether a business is an
Indiana business under subsection (a); and
(2) determine whether a particular business meets the
requirements of this section and the criteria developed under
this subsection.
(d) When entering into a contract under this chapter, the
commission shall award a contract to an Indiana business unless
the Indiana business:
(1) is not the lowest responsive and responsible offeror; or
(2) is otherwise unable to perform the contract.
(e) A business that submits a bid for a contract must provide the
following information to the commission and the Indiana
department of administration:
(1) The location of the business's principal place of business,
including a statement explaining the reasons the business
considers the location named as the business's principal place
of business.
(2) The amount of the business's total payroll and the amount
of the business's payroll paid to Indiana residents.
(3) The number of the business's employees, including the
number of the business's employees who are:
(A) Indiana residents; or
(B) outsourced employees.
(4) The percentage of the total bid price and the dollar
amount to be paid for services performed by individuals:
(A) outside Indiana but inside the United States; or
(B) outside the United States.
(5) The number of outsourced workers that the contractor
would hire to perform services under the contract and the
salaries or wages that the contractor would pay to the
outsourced workers.
SOURCE: IC 8-23-9-4.7; (07)IN0456.1.8. -->
SECTION 8. IC 8-23-9-4.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]: Sec. 4.7. (a) For purposes of 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.
(b) For purposes of this section, "outsourced employee" means
an employee in a particular departmental, occupational, or other
definable classification who is terminated from employment as the
result of:
(1) a lease or other transfer of state or state educational
institution property to a nongovernmental entity; or
(2) a contractual arrangement with a nongovernmental entity
to perform certain state or state educational institution
functions.
(c) The Indiana department of transportation shall consult with
the Indiana department of administration and the Indiana
economic development corporation to:
(1) develop criteria for determining whether a business is an
Indiana business under subsection (a); and
(2) determine whether a particular business meets the
requirements of this section and the criteria developed under
this subsection.
(d) When entering into a contract under this chapter, the
Indiana department of transportation shall award a contract to an
Indiana business unless the Indiana business:
(1) is not the lowest responsive and responsible offeror; or
(2) is otherwise unable to perform the contract.
(e) A business that submits a bid for a contract must provide the
following information to the Indiana department of transportation
and the Indiana department of administration:
(1) The location of the business's principal place of business,
including a statement explaining the reasons the business
considers the location named as the business's principal place
of business.
(2) The amount of the business's total payroll and the amount
of the business's payroll paid to Indiana residents.
(3) The number of the business's employees, including the
number of the business's employees who are:
(A) Indiana residents; or
(B) outsourced employees.
(4) The percentage of the total bid price and the dollar
amount to be paid for services performed by individuals:
(A) outside Indiana but inside the United States; or
(B) outside the United States.
(5) The number of outsourced workers that the contractor
would hire to perform services under the contract and the
salaries or wages that the contractor would pay to the
outsourced workers.
SOURCE: IC 20-12-78; (07)IN0456.1.9. -->
SECTION 9. IC 20-12-78 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]:
Chapter 78. Emergency Tuition Assistance Program for
Outsourced Employees of the State or State Educational
Institutions
Sec. 1. As used in this chapter, "academic year" means the
period starting on August 1 of a calendar year and ending on July
31 of the succeeding calendar year.
Sec. 2. As used in this chapter, "commission" refers to the state
student assistance commission established by IC 20-12-21-4.
Sec. 3. As used in this chapter, "eligible student" means an
individual who:
(1) is:
(A) an outsourced employee; or
(B) the child of an outsourced employee;
(2) is eligible to pay the resident tuition rate at the state
educational institution the person will attend, as determined
by the institution; and
(3) possesses the requisite academic qualifications to attend
the state educational institution, as determined by the
institution.
Sec. 4. As used in this chapter, "full-time student" means a
student who is enrolled in:
(1) at least twelve (12) credit hours in an academic semester;
or
(2) the minimum number of hours, if less than twelve (12)
hours, a student must be enrolled to be considered a full-time
student by the state educational institution that the student
attends.
Sec. 5. As used in this chapter, "outsourced employee" means an
employee in a particular departmental, occupational, or other
definable classification who is terminated from employment as the
result of:
(1) a lease or other transfer of state or state educational
institution property to a nongovernmental entity; or
(2) a contractual arrangement with a nongovernmental entity
to perform certain state or state educational institution
functions.
Sec. 6. As used in this chapter, "program" refers to the
emergency assistance tuition program established by this chapter.
Sec. 7. (a) A program is established to provide low interest loans
from the state general fund to eligible full-time students at state
educational institutions.
(b) The commission shall administer the program.
(c) The expenses of administering the program shall be paid
from the state general fund.
Sec. 8. The commission may adopt rules under IC 4-22-2 to
implement and administer this chapter. The rules adopted must
include:
(1) the guidelines for making a loan under this chapter; and
(2) the process by which the loan interest rate is determined.
Sec. 9. The amount of a loan made under section 7 of this
chapter may not exceed the tuition and other regularly assessed
fees incurred by an eligible student during the academic year in
which the eligible student receives a loan under this chapter as
determined by the commission.
Sec. 10. Repayment of a loan made under section 7 of this
chapter must begin not later than six (6) months after the earlier
of:
(1) the date an eligible student completes the degree program
for which the loan was made; or
(2) the date an eligible student is no longer enrolled in a state
educational institution as a full-time student.
SOURCE: IC 24-4.5-8; (07)IN0456.1.10. -->
SECTION 10. IC 24-4.5-8 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]:
Chapter 8. Loan Protection for Outsourced Employees of the
State or State Educational Institutions
Sec. 101. This chapter applies to an individual who is an
employee of:
(1) the state; or
(2) a state educational institution;
who is an outsourced employee.
Sec. 102. As used in this chapter, "eligible loan" means a loan
secured by:
(1) a mortgage or other interest in an individual's principal
residence; or
(2) a lien, security interest, or other interest in an individual's
primary vehicle.
Sec. 103. As used in this chapter, "financial institution" has the
meaning set forth in IC 28-1-1-3.
Sec. 104. As used in this chapter, "outsourced employee" means
an employee in a particular departmental, occupational, or other
definable classification who is terminated from employment as the
result of:
(1) a lease or other transfer of state or state educational
institution property to a nongovernmental entity; or
(2) a contractual arrangement with a nongovernmental entity
to perform certain state or state educational institution
functions.
Sec. 105. As used in this chapter, "state educational institution"
has the meaning set forth in IC 20-12-0.5-1.
Sec. 201. Notwithstanding any other law, upon receipt of a
written request from an individual who is an outsourced employee,
a financial institution shall allow the individual to:
(1) defer payment of principal; and
(2) make payments of interest only;
for any eligible loan made or serviced by the financial institution.
Sec. 202. After an individual makes a request described in
section 201 of this chapter for an eligible loan, the financial
institution may not:
(1) declare the loan in default;
(2) charge additional interest for failure to pay the loan
principal; or
(3) assess a penalty.
Sec. 203. An individual who makes a written request under
section 201 of this chapter is entitled to make payments of interest
only for an eligible loan until the earliest of the following:
(1) The date the individual obtains employment comparable
to the individual's employment at termination from the state
or state educational institution.
(2) The date twelve (12) months after the date the individual
makes the request described in section 201 of this chapter.
SOURCE: ; (07)IN0456.1.11. -->
SECTION 11. [EFFECTIVE JULY 1, 2007]
(a) IC 2-5-1.1-11.5,
IC 5-22-17-3.5, and IC 5-22-17-15, all as added by this act, apply to
contracts entered into after June 30, 2007.
(b) IC 5-22-6-3, as added by this act, and IC 4-13.6-6-2.7 and
IC 5-22-15-20.5, both as amended by this act, apply to contracts for
which bids are submitted after June 30, 2007.