Introduced Version






HOUSE BILL No. 1329

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 5-22-15-20.5.

Synopsis: Indiana business price preferences. Provides an additional preference for purchases made by a state agency for supplies manufactured or assembled by an Indiana business in Indiana. Deletes a provision specifying that the Indiana price prefernces are ignored in certain circumstances if an offeror is from a state bordering Indiana.

Effective: July 1, 2010.





Dermody, Messmer, Stemler




    January 13, 2010, read first time and referred to Committee on Interstate and International Cooperation.







Introduced

Second Regular Session 116th General Assembly (2010)


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 this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1329



    A BILL FOR AN ACT to amend the Indiana Code concerning state and local administration.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 5-22-15-20.5; (10)IN1329.1.1. -->     SECTION 1. IC 5-22-15-20.5, AS AMENDED BY P.L.123-2009, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: 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

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.
     (e) If an Indiana business offers to provide supplies manufactured or assembled in Indiana, the following price preference is available, in addition to the price preference available under subsection (d):
        (1) Three percent (3%) for a purchase expected by the state agency to be less than five hundred thousand dollars ($500,000).
        (2) Two percent (2%) 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).
The Indiana department of administration shall adopt rules to establish guidelines for determining when supplies are manufactured or assembled in Indiana.

    (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 bid that the business claims the preference provided by this section.


        (2) Provide the following information to the department:
            (A) 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), a statement explaining the reasons the business considers the location named as the business's principal place of business.
            (B) The amount of the business's total payroll and the amount of the business's payroll paid to Indiana residents.
            (C) The number of the business's employees and the number of the business's employees who are Indiana residents.
            (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.