February 15, 2008
ENGROSSED
SENATE BILL No. 197
_____
DIGEST OF SB 197
(Updated February 12, 2008 12:04 pm - DI 96)
Citations Affected: IC 4-13; IC 4-35.
Synopsis: Minority and women businesses. Excludes utilities, certain
health care services, and rent from the definition of "goods and
services" for purposes of contracting with minority and women's
business enterprises. Provides that the commissioner of the Indiana
department of transportation may designate the economic opportunity
director of the department to attend meetings of the governor's
commission on minority and women's business enterprises. Removes
"other similar minority groups" from the definition of "minority group"
for purposes of the governor's commission on minority and women's
business enterprises. Amends the horse racing commission law to: (1)
remove the commission's authority to establish and administer a unified
certification procedure; and (2) require the commission to use the
certifications of minority and women's business enterprises made by
the department of administration.
Effective: July 1, 2008.
Ford
, Kruse
, Mishler
(HOUSE SPONSORS _ BARTLETT, LEONARD, MAYS)
January 8, 2008, read first time and referred to Committee on Pensions and Labor.
January 24, 2008, amended, reported favorably _ Do Pass.
January 28, 2008, read second time, ordered engrossed. Engrossed.
January 29, 2008, read third time, passed. Yeas 48, nays 0.
HOUSE ACTION
January 30, 2008, read first time and referred to Committee on Labor and Employment.
February 14, 2008, amended, reported _ Do Pass.
February 15, 2008
Second Regular Session 115th General Assembly (2008)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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ENGROSSED
SENATE BILL No. 197
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 4-13-16.5-1; (08)ES0197.1.1. -->
SECTION 1. IC 4-13-16.5-1, AS AMENDED BY P.L.228-2007,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 1. (a) The definitions in this section apply
throughout this chapter.
(b) "Commission" refers to the governor's commission on minority
and women's business enterprises established under section 2 of this
chapter.
(c) "Commissioner" refers to the deputy commissioner for minority
and women's business enterprises of the department.
(d) "Contract" means any contract awarded by a state agency for
construction projects or the procurement of goods or services,
including professional services.
For purposes of this subsection,
"goods or services" may not include the following when
determining the total value of contracts for state agencies:
(1) Utilities.
(2) Health care services (as defined in IC 27-8-11-1(c)).
(3) Rent paid for real property or payments constituting the
price of an interest in real property as a result of a real estate
transaction.
(e) "Department" refers to the Indiana department of administration
established by IC 4-13-1-2.
(f) "Minority business enterprise" or "minority business" means an
individual, partnership, corporation, limited liability company, or joint
venture of any kind that is owned and controlled by one (1) or more
persons who are:
(1) United States citizens; and
(2) members of a minority group or a qualified minority nonprofit
corporation.
(g) "Qualified minority or women's nonprofit corporation" means a
corporation that:
(1) is exempt from federal income taxation under Section
501(c)(3) of the Internal Revenue Code;
(2) is headquartered in Indiana;
(3) has been in continuous existence for at least five (5) years;
(4) has a board of directors that has been in compliance with all
other requirements of this chapter for at least five (5) years;
(5) is chartered for the benefit of the minority community or
women; and
(6) provides a service that will not impede competition among
minority business enterprises or women's business enterprises at
the time a nonprofit applies for certification as a minority
business enterprise or a women's business enterprise.
(h) "Owned and controlled" means:
(1) if the business is a qualified minority nonprofit corporation, a
majority of the board of directors are minority;
(2) if the business is a qualified women's nonprofit corporation,
a majority of the board of defectors directors are women; or
(3) if the business is a business other than a qualified minority or
women's nonprofit corporation, having:
(A) ownership of at least fifty-one percent (51%) of the
enterprise, including corporate stock of a corporation;
(B) control over the management and active in the day-to-day
operations of the business; and
(C) an interest in the capital, assets, and profits and losses of
the business proportionate to the percentage of ownership.
(i) "Minority group" means:
(1) Blacks;
(2) American Indians;
(3) Hispanics; and
(4) Asian Americans.
and
(5) other similar minority groups.
(j) "Separate body corporate and politic" refers to an entity
established by the general assembly as a body corporate and politic.
(k) "State agency" refers to any authority, board, branch,
commission, committee, department, division, or other instrumentality
of the executive, including the administrative, department of state
government.
SOURCE: IC 4-13-16.5-2; (08)ES0197.1.2. -->
SECTION 2. IC 4-13-16.5-2, AS AMENDED BY P.L.228-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 2. (a) There is established a governor's
commission on minority and women's business enterprises. The
commission shall consist of the following members:
(1) A governor's designee, who shall serve as chairman of the
commission.
(2) The commissioner of the Indiana department of transportation,
or the economic opportunity director of the Indiana
department of transportation if the commissioner of the
Indiana department of transportation so designates.
(3) The chairperson of the board of the Indiana economic
development corporation or the chairperson's designee.
(4) The commissioner of the department.
(5) Nine (9) individuals with demonstrated capabilities in
business and industry, especially minority and women's business
enterprises, appointed by the governor from the following
geographical areas of the state:
(A) Three (3) from the northern one-third (1/3) of the state.
(B) Three (3) from the central one-third (1/3) of the state.
(C) Three (3) from the southern one-third (1/3) of the state.
(6) Two (2) members of the house of representatives, no more
than one (1) from the same political party, appointed by the
speaker of the house of representatives to serve in a nonvoting
advisory capacity.
(7) Two (2) members of the senate, no more than one (1) from the
same political party, appointed by the president pro tempore of
the senate to serve in a nonvoting advisory capacity.
Not more than six (6) of the ten (10) members appointed or designated
by the governor may be of the same political party. Appointed members
of the commission shall serve four (4) year terms. A vacancy occurs if
a legislative member leaves office for any reason. Any vacancy on the
commission shall be filled in the same manner as the original
appointment.
(b) Each member of the commission who is not a state employee is
entitled to the following:
(1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
(2) Reimbursement for traveling expenses and other expenses
actually incurred in connection with the member's duties as
provided under IC 4-13-1-4 and in the state travel policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
(c) Each legislative member of the commission is entitled to receive
the same per diem, mileage, and travel allowances established by the
legislative council and paid to members of the general assembly
serving on interim study committees. The allowances specified in this
subsection shall be paid by the legislative services agency from the
amounts appropriated for that purpose.
(d) A member of the commission who is a state employee but who
is not a member of the general assembly is not entitled to any of the
following:
(1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
(2) Reimbursement for traveling expenses as provided under
IC 4-13-1-4.
(3) Other expenses actually incurred in connection with the
member's duties.
(e) The commission shall meet at least four (4) times each year and
at other times as the chairman considers necessary.
(f) The duties of the commission shall include but not be limited to
the following:
(1) Identify minority and women's business enterprises in the
state.
(2) Assess the needs of minority and women's business
enterprises.
(3) Initiate aggressive programs to assist minority and women's
business enterprises in obtaining state contracts.
(4) Give special publicity to procurement, bidding, and qualifying
procedures.
(5) Include minority and women's business enterprises on
solicitation mailing lists.
(6) Evaluate the competitive differences between qualified
minority or women's nonprofit corporations and other than
qualified minority or women's nonprofit corporations that offer
similar services and make recommendation to the department on
policy changes necessary to ensure fair competition among
minority and women's business enterprises.
(7) Define the duties, goals, and objectives of the deputy
commissioner of the department as created under this chapter to
assure compliance by all state agencies, separate bodies corporate
and politic, and state educational institutions with state and
federal legislation and policy concerning the awarding of
contracts (including, notwithstanding section 1(d) of this chapter
or any other law, contracts of state educational institutions) to
minority and women's business enterprises.
(8) Establish annual goals:
(A) for the use of minority and women's business enterprises;
and
(B) derived from a statistical analysis of utilization study of
state contracts (including, notwithstanding section 1(d) of this
chapter or any other law, contracts of state educational
institutions) that are required to be updated every five (5)
years.
(9) Prepare a review of the commission and the various affected
departments of government to be submitted to the governor and
the legislative council on March 1 and October 1 of each year,
evaluating progress made in the areas defined in this subsection.
(10) Ensure that the statistical analysis required under this
section:
(A) is based on goals for participation of minority business
enterprises established in Richmond v. Croson, 488 U.S. 469
(1989);
(B) includes information on both contracts and subcontracts
(including, notwithstanding section 1(d) of this chapter or any
other law, contracts and subcontracts of state educational
institutions); and
(C) uses data on the combined capacity of minority and
women's businesses enterprises in Indiana and not just
regional data.
(g) The department shall adopt rules of ethics under IC 4-22-2 for
commission members other than commission members appointed
under subsection (a)(6) or (a)(7).
(h) The department shall furnish administrative support and staff as
is necessary for the effective operation of the commission.
SOURCE: IC 4-35-11-3; (08)ES0197.1.3. -->
SECTION 3. IC 4-35-11-3, AS ADDED BY P.L.233-2007,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 3. As used in this chapter, "minority" means a
person who is one (1) of the following:
(1) Black.
(2) Hispanic.
(3) Asian American.
(4) Native American or Alaskan native.
member of a minority group (as defined in IC 4-13-16.5-1).
SOURCE: IC 4-35-11-4; (08)ES0197.1.4. -->
SECTION 4. IC 4-35-11-4, AS ADDED BY P.L.233-2007,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 4. As used in this chapter, "minority business
enterprise" means a business that is one (1) of the following:
(1) A sole proprietorship owned and controlled by a minority.
(2) A partnership or joint venture owned and controlled by
minorities and in which:
(A) at least fifty-one percent (51%) of the ownership interest
is held by at least one (1) minority; and
(B) the management and daily business operations are
controlled by at least one (1) minority who also holds an
ownership interest.
(3) A corporation or other entity in which:
(A) at least fifty-one percent (51%) of:
(i) the ownership interest; or
(ii) the stock, if stock is issued;
is held by at least one (1) minority; and
(B) the management and daily business operations are
controlled by at least one (1) minority who also holds an
ownership interest or stock.
has the meaning set forth in IC 4-13-16.5-1.
SOURCE: IC 4-35-11-5; (08)ES0197.1.5. -->
SECTION 5. IC 4-35-11-5, AS ADDED BY P.L.233-2007,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 5. As used in this chapter, "women's business
enterprise" means a business that is one (1) of the following:
(1) A sole proprietorship owned and controlled by a woman.
(2) A partnership or joint venture owned and controlled by
women and in which:
(A) at least fifty-one percent (51%) of the ownership interest
is held by at least one (1) woman; and
(B) the management and daily business operations are
controlled by at least one (1) woman who also holds an
ownership interest.
(3) A corporation or other entity in which:
(A) at least fifty-one percent (51%) of:
(i) the ownership interest; or
(ii) the stock, if stock is issued;
is held by at least one (1) woman; and
(B) the management and daily business operations are
controlled by at least one (1) woman who also holds an
ownership interest or stock.
has the meaning set forth in IC 4-13-16.5-1.3.
SOURCE: IC 4-35-11-8; (08)ES0197.1.6. -->
SECTION 6. IC 4-35-11-8, AS ADDED BY P.L.233-2007,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 8. The commission shall use the certifications
made under IC 4-13-16.5 for minority and women's business
enterprises that do business with horse track operations on
contracts for goods or services or contracts for business.
The commission shall establish and administer a unified
certification procedure for minority and women's business enterprises
that do business with permit holders on contracts for goods and
services or contracts for business.
SOURCE: IC 4-35-11-9; (08)ES0197.1.7. -->
SECTION 7. IC 4-35-11-9, AS ADDED BY P.L.233-2007,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 9. The commission shall supply permit holders
with a list of minority and women's business enterprises the
commission has certified under section 8 of this chapter. The
commission shall review the list at least annually to determine the
minority and women's business enterprises that should continue to be
certified. The commission shall establish procedures for challenging
the designation of a certified minority and women's business enterprise.
The procedure must include proper notice and a hearing for all
concerned parties.