HB 1090-1_ Filed 01/26/2012, 11:18 Riecken


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that House Bill 1090 be amended to read as follows:

SOURCE: Page 1, line 1; (12)MO109003.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 4-13.6-5-13; (12)MO109003.1. -->     "SECTION 1. IC 4-13.6-5-13 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (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 residents of Indiana as a majority of its employees.
        (4) A business that makes significant capital investments in Indiana as determined by the department.
        (5) A business that has a substantial positive economic impact on Indiana as determined by the department.
    (b) Except as prohibited by federal law, there is a price preference for an Indiana business that:
        (1) submits a bid for the performance of the work on a public works project;
        (2) competes for the contract against at least one (1) bidder domiciled in a state that provides a price preference to bidders from that state; and
        (3) claims the preference under subsection (e).
The amount of the preference provided by this subsection is equal to the price preference provided by the state in which the out-of-state bidder is domiciled. If bidders from two (2) or more states granting preferences to in-state bidders bid for the contract, the amount of the preference is equal to the highest preference provided among those states.
    (c) Notwithstanding any statute that requires the award of a contract to the lowest responsive and responsible bidder or the lowest responsive and responsible quoter, but subject to subsection (d), a contract shall be awarded to the lowest responsive and responsible Indiana business that claims the preference provided by this section.
    (d) Notwithstanding subsection (c), a contract shall be awarded to the lowest responsive and responsible bidder or quoter, regardless of the preference provided in this section, if the lowest responsive and responsible bidder or quoter is an Indiana business.
    (e) 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 (a)(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 residents of Indiana.
            (C) The number of the business's employees and the number of the business's employees who are residents of Indiana.
            (D) If the business 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 business claims the preference as an Indiana business described in subsection (a)(5), a description of the substantial positive economic impact the business has on Indiana.

SOURCE: IC 4-13.6-6-2.8; (12)MO109003.2. -->     SECTION 2. IC 4-13.6-6-2.8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.8. (a) As used in this section, "resident of Indiana" means a person who is at least eighteen (18) years of age and is one (1) of the following:
        (1) A person who has registered a motor vehicle in Indiana.
        (2) A person who is registered to vote in Indiana.
        (3) A person who has a child enrolled in an elementary or a secondary school located in Indiana.
        (4) A person who derives more than one-half (1/2) of the person's gross income (as defined in Section 61 of the Internal Revenue Code) from sources in Indiana, according to the provisions applicable to determining the source of adjusted gross income under IC 6-3-2-2. However, a person who would otherwise be considered a resident of Indiana under this subdivision is not a resident of Indiana if a preponderance of the evidence concerning the factors set forth in subdivisions (1) through (3) proves that the person is not a resident of Indiana.
        (5) A person who:
            (A) works from an office in Indiana;
            (B) is on a payroll from a business located in Indiana;
            (C) possesses a telephone with a telephone number that has an Indiana area code; or
            (D) has a permanent place of doing business in Indiana;
        for at least thirteen (13) months before entering into a contract or subcontract under this chapter.
    (b) A contract for a public works project may not be awarded to a contractor who does not:
        (1) employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least ninety percent (90%) of the employees who work on the subcontract.
    (c) Before August 15, 2013, and before August 15 of each year thereafter, the division shall file with the legislative council a report for the preceding year stating:
        (1) for each contractor awarded a contract under this chapter; and
        (2) for each subcontractor with which a contractor referred to in subdivision (1) enters into a contract in connection with a contract awarded under this chapter;
the percentage of the employees of the contractor or subcontractor who work on the contract and are residents of Indiana. The report to the legislative council must be in an electronic format under IC 5-14-6.
    (d) A contract awarded under this chapter for a public works project is terminated if the division determines that the contractor has failed to:
        (1) employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least ninety percent (90%) of the employees who work on the subcontract.
    (e) A contractor or subcontractor who fails to employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract or subcontract commits a Class B infraction for each nonresident of Indiana employed that exceeds the number of nonresident employees permitted by this section.

     (f) If:
        (1) a contract or subcontract subject to this section is funded in whole or in part with federal funds;
and
        (2) imposing the requirements of this section would cause the state to lose the federal funds for the contract, as determined by the federal agency providing the funds;
subsections (a) through (e) do not apply.

     (g) If an agency of the federal government makes a determination under subsection (f) that causes a contract to be exempted from the requirements of subsections (a) through (e), this section is meant to express the view of the general assembly that expanding employment opportunities for Indiana residents remains a vital part of the state's economy.
    (h) A contract exempted from the requirements of subsections (a) through (e) may not reference the employment of Indiana residents. The division may not consider the number of employment opportunities for Indiana residents when doing any of the following with respect to a project subject to a contract that is exempted from the requirements of subsections (a) through (e):
        (1) Issuing a request for proposals.
        (2) Issuing a bulletin inviting bids for the contract.
        (3) Prequalifying a contractor for the contract.
        (4) Evaluating a bid for the contract.

     (i) This section does not apply to contracts entered into to perform work:
        (1) resulting from an emergency; or
        (2) performed
by an artisan or by someone in a specialty area with limited persons able to perform the work.
SOURCE: IC 5-16-1-7.5; (12)MO109003.3. -->     SECTION 3. IC 5-16-1-7.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7.5. (a) As used in this section, "resident of Indiana" means a person who is at least eighteen (18) years of age and is one (1) of the following:
        (1) A person who has registered a motor vehicle in Indiana.
        (2) A person who is registered to vote in Indiana.
        (3) A person who has a child enrolled in an elementary or a secondary school located in Indiana.
        (4) A person who derives more than one-half (1/2) of the person's gross income (as defined in Section 61 of the Internal Revenue Code) from sources in Indiana, according to the provisions applicable to determining the source of adjusted gross income under IC 6-3-2-2. However, a person who would

otherwise be considered a resident of Indiana under this subdivision is not a resident of Indiana if a preponderance of the evidence concerning the factors set forth in subdivisions (1) through (3) proves that the person is not a resident of Indiana.
        (5) A person who:
            (A) works from an office in Indiana;
            (B) is on a payroll from a business located in Indiana;
            (C) possesses a telephone with a telephone number that has an Indiana area code; or
            (D) has a permanent place of doing business in Indiana;
        for at least thirteen (13) months before entering into a contract or subcontract under this chapter.
    (b) A contract for a public works project under this chapter may not be awarded to a contractor who does not:
        (1) employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least ninety percent (90%) of the employees who work on the subcontract.
    (c) Before August 15, 2013, and before August 15 of each year thereafter, any state agency entering into contracts under this chapter shall file with the legislative council a report stating:
        (1) for each contractor awarded a contract under this chapter; and
        (2) for each subcontractor with which a contractor referred to in subdivision (1) enters into a contract in connection with a contract awarded under this chapter;
the percentage of the employees of the contractor or subcontractor who work on the contract and are residents of Indiana. The report to the legislative council must be in an electronic format under IC 5-14-6.
    (d) A contract awarded under this chapter for a public works project is terminated if the state or commission determines that the contractor has failed to:
        (1) employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least ninety percent (90%) of the employees who work on the subcontract.
    (e) A contractor or subcontractor who fails to employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract or subcontract commits a Class B infraction for each nonresident of Indiana employed that exceeds the number of nonresident employees permitted by this section.

     (f) If:
        (1) a contract or subcontract subject to this section is funded

in whole or in part with federal funds; and
        (2) imposing the requirements of this section would cause the state to lose the federal funds for the contract, as determined by the federal agency providing the funds;
subsections (a) through (e) do not apply.

     (g) If an agency of the federal government makes a determination under subsection (f) that causes a contract to be exempted from the requirements of subsections (a) through (e), this section is meant to express the view of the general assembly that expanding employment opportunities for Indiana residents remains a vital part of the state's economy.
    (h) A contract exempted from the requirements of subsections (a) through (e) may not reference the employment of Indiana residents. The state or a commission may not consider the number of employment opportunities for Indiana residents when doing any of the following with respect to a project subject to a contract that is exempted from the requirements of subsections (a) through (e):
        (1) Issuing a request for proposals.
        (2) Issuing a bulletin inviting bids for the contract.
        (3) Prequalifying a contractor for the contract.
        (4) Evaluating a bid for the contract.

     (i) This section does not apply to contracts entered into to perform work:
        (1) resulting from an emergency; or
        (2) performed
by an artisan or by someone in a specialty area with limited persons able to perform the work.

SOURCE: IC 5-16-1-9; (12)MO109003.4. -->     SECTION 4. IC 5-16-1-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (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 residents of Indiana as a majority of its employees.
        (4) A business that makes significant capital investments in Indiana as determined by the Indiana department of administration.
        (5) A business that has a substantial positive economic impact on Indiana as determined by the Indiana department of administration.
    (b) Except as prohibited by federal law, there is a price preference for an Indiana business that:
        (1) submits a bid for the performance of the work on a public works project;
        (2) competes for the contract against at least one (1) bidder

domiciled in a state that provides a price preference to bidders from that state; and
        (3) claims the preference under subsection (e).
The amount of the preference provided by this subsection is equal to the price preference provided by the state in which the out-of-state bidder is domiciled. If bidders from two (2) or more states granting preferences to in-state bidders bid for the contract, the amount of the preference is equal to the highest preference provided among those states.
    (c) Notwithstanding any statute that requires the award of a contract to the lowest responsive and responsible bidder or the lowest responsive and responsible quoter, but subject to subsection (d), a contract shall be awarded to the lowest responsive and responsible Indiana business that claims the preference provided by this section.
    (d) Notwithstanding subsection (c), a contract shall be awarded to the lowest responsive and responsible bidder or quoter, regardless of the preference provided in this section, if the lowest responsive and responsible bidder or quoter is an Indiana business.
    (e) 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 awarding officer, commission, or agent and the Indiana department of administration:
            (A) The location of the business's principal place of business. If the business claims the preference as an Indiana business described in subsection (a)(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 residents of Indiana.
            (C) The number of the business's employees and the number of the business's employees who are residents of Indiana.
            (D) If the business 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 business claims the preference as an Indiana business described in subsection (a)(5), a description of the substantial positive economic impact the business has on Indiana.
".

SOURCE: Page 25, line 41; (12)MO109003.25. -->     Page 25, between lines 41 and 42, begin a new paragraph and insert:
SOURCE: IC 8-10-1-7.7; (12)MO109003.23. -->     "SECTION 23. IC 8-10-1-7.7 IS ADDED TO THE INDIANA

CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7.7. (a) As used in this section, "resident of Indiana" means a person who is at least eighteen (18) years of age and is one (1) of the following:
        (1) A person who has registered a motor vehicle in Indiana.
        (2) A person who is registered to vote in Indiana.
        (3) A person who has a child enrolled in an elementary or a secondary school located in Indiana.
        (4) A person who derives more than one-half (1/2) of the person's gross income (as defined in Section 61 of the Internal Revenue Code) from sources in Indiana, according to the provisions applicable to determining the source of adjusted gross income under IC 6-3-2-2. However, a person who would otherwise be considered a resident of Indiana under this subdivision is not a resident of Indiana if a preponderance of the evidence concerning the factors set forth in subdivisions (1) through (3) proves that the person is not a resident of Indiana.
        (5) A person who:
            (A) works from an office in Indiana;
            (B) is on a payroll from a business located in Indiana;
            (C) possesses a telephone with a telephone number that has an Indiana area code; or
            (D) has a permanent place of doing business in Indiana;
        for at least thirteen (13) months before entering into a contract or subcontract under this chapter.
    (b) A contract for a public works project under this chapter may not be awarded to a contractor who does not:
        (1) employ residents of Indiana as at least ninety percent (90%) of the employees of the contractor who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least ninety percent (90%) of the employees who work on the subcontract.
    (c) Before August 15, 2013, and before August 15 of each year thereafter, the commission shall file with the legislative council a report stating:
        (1) for each contractor awarded a contract under this chapter; and
        (2) for each subcontractor with which a contractor referred to in subdivision (1) enters into a contract in connection with a contract awarded under this chapter;
the percentage of the employees of the contractor or subcontractor who work on the contract and are residents of Indiana. The report to the legislative council must be in an electronic format under IC 5-14-6.
    (d) A contract awarded under this chapter for a public works

project is terminated if the commission determines that the contractor has failed to:
        (1) employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least ninety percent (90%) of the employees who work on the subcontract.
    (e) A contractor or subcontractor who fails to employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract or subcontract commits a Class B infraction for each nonresident of Indiana employed that exceeds the number of nonresident employees permitted by this section.

     (f) If:
        (1) a contract or subcontract subject to this section is funded in whole or in part with federal funds;
and
        (2) imposing the requirements of this section would cause the state to lose the federal funds for the contract, as determined by the federal agency providing the funds;
subsections (a) through (e) do not apply.

     (g) If an agency of the federal government makes a determination under subsection (f) that causes a contract to be exempted from the requirements of subsections (a) through (e), this section is meant to express the view of the general assembly that expanding employment opportunities for Indiana residents remains a vital part of the state's economy.
    (h) A contract exempted from the requirements of subsections (a) through (e) may not reference the employment of Indiana residents. The commission may not consider the number of employment opportunities for Indiana residents when doing any of the following with respect to a project subject to a contract that is exempted from the requirements of subsections (a) through (e):
        (1) Issuing a request for proposals.
        (2) Issuing a bulletin inviting bids for the contract.
        (3) Prequalifying a contractor for the contract.
        (4) Evaluating a bid for the contract.

     (i) This section does not apply to contracts entered into to perform work:
        (1) resulting from an emergency; or
        (2) performed
by an artisan or by someone in a specialty area with limited persons able to perform the work.

SOURCE: IC 8-10-1-7.9; (12)MO109003.24. -->     SECTION 24. IC 8-10-1-7.9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7.9. (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 residents of Indiana as a majority of its employees.
        (4) A business that makes significant capital investments in Indiana as determined by the Indiana department of administration.
        (5) A business that has a substantial positive economic impact on Indiana as determined by the Indiana department of administration.
    (b) Except as prohibited by federal law, there is a price preference for an Indiana business that:
        (1) submits a bid for the performance of the work on a public works project;
        (2) competes for the contract against at least one (1) bidder domiciled in a state that provides a price preference to bidders from that state; and
        (3) claims the preference under subsection (e).
The amount of the preference provided by this subsection is equal to the price preference provided by the state in which the out-of-state bidder is domiciled. If bidders from two (2) or more states granting preferences to in-state bidders bid for the contract, the amount of the preference is equal to the highest preference provided among those states.
    (c) Notwithstanding any statute that requires the award of a contract to the lowest responsive and responsible bidder or the lowest responsive and responsible quoter, but subject to subsection (d), a contract shall be awarded to the lowest responsive and responsible Indiana business that claims the preference provided by this section.
    (d) Notwithstanding subsection (c), a contract shall be awarded to the lowest responsive and responsible bidder or quoter, regardless of the preference provided in this section, if the lowest responsive and responsible bidder or quoter is an Indiana business.
    (e) 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 commission and the Indiana department of administration:
            (A) The location of the business's principal place of business. If the business claims the preference as an Indiana business described in subsection (a)(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 residents of Indiana.


            (C) The number of the business's employees and the number of the business's employees who are residents of Indiana.
            (D) If the business 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 business claims the preference as an Indiana business described in subsection (a)(5), a description of the substantial positive economic impact the business has on Indiana.

SOURCE: IC 8-23-9-4.6; (12)MO109003.25. -->     SECTION 25. IC 8-23-9-4.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4.6. (a) As used in this section, "resident of Indiana" means a person who is at least eighteen (18) years of age and is one (1) of the following:
        (1) A person who has registered a motor vehicle in Indiana.
        (2) A person who is registered to vote in Indiana.
        (3) A person who has a child enrolled in an elementary or a secondary school located in Indiana.
        (4) A person who derives more than one-half (1/2) of the person's gross income (as defined in Section 61 of the Internal Revenue Code) from sources in Indiana, according to the provisions applicable to determining the source of adjusted gross income under IC 6-3-2-2. However, a person who would otherwise be considered a resident of Indiana under this subdivision is not a resident of Indiana if a preponderance of the evidence concerning the factors set forth in subdivisions (1) through (3) proves that the person is not a resident of Indiana.
        (5) A person who:
            (A) works from an office in Indiana;
            (B) is on a payroll from a business located in Indiana;
            (C) possesses a telephone with a telephone number that has an Indiana area code; or
            (D) has a permanent place of doing business in Indiana;
        for at least thirteen (13) months before entering into a contract or subcontract under this chapter.
    (b) A contract for a public works project under this chapter may not be awarded to a contractor who does not:
        (1) employ residents of Indiana as at least ninety percent (90%) of the employees of the contractor who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least ninety percent (90%) of the employees working on the subcontract.
    (c) Before August 15, 2013, and before August 15 of each year

thereafter, the department shall file with the legislative council a report stating:
        (1) for each contractor awarded a contract under this chapter; and
        (2) for each subcontractor with which a contractor referred to in subdivision (1) enters into a contract in connection with a contract awarded under this chapter;
the percentage of the employees of the contractor or subcontractor who work on the contract and are residents of Indiana. The report to the legislative council must be in an electronic format under IC 5-14-6.
    (d) A contract awarded under this chapter for a public works project is terminated if the department determines that the contractor has failed to:
        (1) employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least ninety percent (90%) of the employees who work on the subcontract.
    (e) A contractor or subcontractor who fails to employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract or subcontract commits a Class B infraction for each nonresident of Indiana employed that exceeds the number of nonresident employees permitted by this section.

     (f) If:
        (1) a contract or subcontract subject to this section is funded in whole or in part with federal funds;
and
        (2) imposing the requirements of this section would cause the state to lose the federal funds for the contract, as determined by the federal agency providing the funds;
subsections (a) through (e) do not apply.

     (g) If an agency of the federal government makes a determination under subsection (f) that causes a contract to be exempted from the requirements of subsections (a) through (e), this section is meant to express the view of the general assembly that expanding employment opportunities for Indiana residents remains a vital part of the state's economy.
    (h) A contract exempted from the requirements of subsections (a) through (e) may not reference the employment of Indiana residents. The department may not consider the number of employment opportunities for Indiana residents when doing any of the following with respect to a project subject to a contract that is exempted from the requirements of subsections (a) through (e):
        (1) Issuing a request for proposals.
        (2) Issuing a bulletin inviting bids for the contract.
        (3) Prequalifying a contractor for the contract.
        (4) Evaluating a bid for the contract.


     (i) This section does not apply to contracts entered into to perform work:
        (1) resulting from an emergency; or
        (2) performed
by an artisan or by someone in a specialty area with limited persons able to perform the work.
SOURCE: IC 8-23-9-23.5; (12)MO109003.26. -->     SECTION 26. IC 8-23-9-23.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 23.5. (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 residents of Indiana as a majority of its employees.
        (4) A business that makes significant capital investments in Indiana as determined by the Indiana department of administration.
        (5) A business that has a substantial positive economic impact on Indiana as determined by the Indiana department of administration.
    (b) Except as prohibited by federal law, there is a price preference for an Indiana business that:
        (1) submits a bid for the performance of the work on a public works project;
        (2) competes for the contract against at least one (1) bidder domiciled in a state that provides a price preference to bidders from that state; and
        (3) claims the preference under subsection (e).
The amount of the preference provided by this subsection is equal to the price preference provided by the state in which the out-of-state bidder is domiciled. If bidders from two (2) or more states granting preferences to in-state bidders bid for the contract, the amount of the preference is equal to the highest preference provided among those states.
    (c) Notwithstanding any statute that requires the award of a contract to the lowest responsive and responsible bidder or the lowest responsive and responsible quoter, but subject to subsection (d) and any federal statute or regulation to the contrary, a contract shall be awarded to the lowest responsive and responsible Indiana business that claims the preference provided by this section.
    (d) Notwithstanding subsection (c), a contract shall be awarded to the lowest responsive and responsible bidder or quoter, regardless of the preference provided in this section, if the lowest responsive and responsible bidder or quoter is an Indiana business.
    (e) 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 and the Indiana department of administration:
            (A) The location of the business's principal place of business. If the business claims the preference as an Indiana business described in subsection (a)(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 residents of Indiana.
            (C) The number of the business's employees and the number of the business's employees who are residents of Indiana.
            (D) If the business 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 business claims the preference as an Indiana business described in subsection (a)(5), a description of the substantial positive economic impact the business has on Indiana.

SOURCE: IC 36-1-12-5.5; (12)MO109003.27. -->     SECTION 27. IC 36-1-12-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5.5. (a) As used in this section, "resident of Indiana" means a person who is at least eighteen (18) years of age and is one (1) of the following:
        (1) A person who has registered a motor vehicle in Indiana.
        (2) A person who is registered to vote in Indiana.
        (3) A person who has a child enrolled in an elementary or a secondary school located in Indiana.
        (4) A person who derives more than one-half (1/2) of the person's gross income (as defined in Section 61 of the Internal Revenue Code) from sources in Indiana, according to the provisions applicable to determining the source of adjusted gross income under IC 6-3-2-2. However, a person who would otherwise be considered a resident of Indiana under this subdivision is not a resident of Indiana if a preponderance of the evidence concerning the factors set forth in subdivisions (1) through (3) proves that the person is not a resident of Indiana.
        (5) A person who:
            (A) works from an office in Indiana;
            (B) is on a payroll from a business located in Indiana;
            (C) possesses a telephone with a telephone number that has an Indiana area code; or
            (D) has a permanent place of doing business in Indiana;
        for at least thirteen (13) months before entering into a contract or subcontract under this chapter.
    (b) A contract for a public works project under this chapter may not be awarded to a contractor who does not:
        (1) employ residents of Indiana as at least ninety percent (90%) of the employees of the contractor who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least ninety percent (90%) of the employees working on the subcontract.
    (c) A contract awarded under this chapter for a public works project is terminated if the unit determines that the contractor has failed to:
        (1) employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least ninety percent (90%) of the employees who work on the subcontract.
    (d) A contractor or subcontractor who fails to employ residents of Indiana as at least ninety percent (90%) of the employees who work on the contract or subcontract commits a Class B infraction for each nonresident of Indiana employed that exceeds the number of nonresident employees permitted by this section.
    (e) If:
        (1) a contract or subcontract subject to this section is funded in whole or in part with federal funds;
and
        (2) imposing the requirements of this section would cause the state to lose the federal funds for the contract, as determined by the federal agency providing the funds;
subsections (a) through (d) do not apply.

     (f) If an agency of the federal government makes a determination under subsection (e) that causes a contract to be exempted from the requirements of subsections (a) through (d), this section is meant to express the view of the general assembly that expanding employment opportunities for Indiana residents remains a vital part of the state's economy.
    (g) A contract exempted from the requirements of subsections (a) through (d) may not reference the employment of Indiana residents. A unit may not consider the number of employment opportunities for Indiana residents when doing any of the following with respect to a project subject to a contract that is exempted from the requirements of subsections (a) through (d):
        (1) Issuing a request for proposals.
        (2) Issuing a bulletin inviting bids for the contract.
        (3) Prequalifying a contractor for the contract.
        (4) Evaluating a bid for the contract.

     (h) This section does not apply to contracts entered into to perform work:
        (1) resulting from an emergency; or
        (2) performed
by an artisan or by someone in a specialty area with limited persons able to perform the work.".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1090 as printed January 23, 2012.)

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Representative Riecken


MO109003/DI 92     2012