HB 1163-3_ Filed 02/09/2012, 10:14 Arnold

SENATE MOTION


MADAM PRESIDENT:

    I move
that Engrossed House Bill 1163 be amended to read as follows:

SOURCE: Page 1, line 1; (12)MO116305.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 4-13-1-16.5; (12)MO116305.1. -->     "SECTION 1. IC 4-13-1-16.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16.5. (a) As used in this section, "covered transaction" means the award of a contract under:
        (1) IC 4-13.6-5-7;
        (2) IC 4-13.6-6;
        (3) IC 5-16-1;
        (4) IC 8-10-1; or
        (5) IC 8-23-9.
    (b) 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 that are set forth in 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.
    (c) Before October 1, 2013, and each year thereafter, the

commissioner shall compile, make available for public inspection, and submit to the legislative council a report for the preceding state fiscal year stating:
        (1) for the contractors awarded contracts in covered transactions; and
        (2) for the subcontractors with which the contractors referred to in subdivision (1) enter into subcontracts in connection with contracts awarded in covered transactions;
the percentage of the employees of the contractors and subcontractors who work on the contracts who are residents of Indiana. The report to the legislative council must be in an electronic format under IC 5-14-6.

SOURCE: IC 4-13.6-6-2.8; (12)MO116305.2. -->     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 that are set forth in 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.
    (b) When entering a bid under this chapter or a contract for professional services without bids under IC 4-13.6-5-7 for a public works project, each contractor shall provide the division with information on the number of residents of Indiana who will be employed by the contractor and the number of residents of Indiana who will be employed by any subcontractor of the contractor.
    (c) 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 eighty percent (80%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least eighty percent (80%) of the employees who work on the subcontract.
    (d) Before August 15, 2013, and each year thereafter, the division shall file with the commissioner 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 who are residents of Indiana.
    (e) 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 eighty percent (80%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least eighty percent (80%) of the employees who work on the subcontract.
    (f) A contractor or subcontractor who fails to employ residents of Indiana as at least eighty percent (80%) of the employees who work on the contract or subcontract commits a Class B infraction for each nonresident of Indiana employed in excess of the number of nonresident employees permitted by this section.

     (g) If:
        (1) a contract or subcontract awarded under 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, as determined by the federal agency providing the funds, for the contract;
employing eighty percent (80%) Indiana residents for the contract or any subcontract becomes a goal for the contract, and subsections (a) through (f) do not apply.
".
SOURCE: Page 3, line 11; (12)MO116305.3. -->     Page 3, between lines 11 and 12, begin a new paragraph and insert:
SOURCE: IC 5-16-1-7.5; (12)MO116305.6. -->     "SECTION 6. 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 that are set forth in 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.
    (b) When entering into a contract under this chapter, each contractor shall provide the state or commission with information on the number of residents of Indiana who will be employed by the contractor and the number of residents of Indiana who will be employed by any subcontractor of the contractor.
    (c) 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 eighty percent (80%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least eighty percent (80%) of the employees who work on the subcontract.
    (d) Before August 15, 2013, and each year thereafter, the state or a commission entering into contracts under this chapter shall file with the commissioner of the Indiana department of administration 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 who are residents of Indiana.
    (e) 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 eighty percent (80%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least eighty percent (80%) of the employees who work on the subcontract.
    (f) A contractor or subcontractor who fails to employ residents of Indiana as at least eighty percent (80%) of the employees who work on the contract or subcontract commits a Class B infraction for each nonresident of Indiana employed in excess of the number of nonresident employees permitted by this section.

     (g) If:
        (1) a contract or subcontract awarded under 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, as determined by the federal agency providing the funds, for the contract;
employing eighty percent (80%) Indiana residents for the contract or any subcontract becomes a goal for the contract, and

subsections (a) through (f) do not apply.".

SOURCE: Page 7, line 10; (12)MO116305.7. -->     Page 7, between lines 10 and 11, begin a new paragraph and insert:
SOURCE: IC 8-10-1-7.7; (12)MO116305.12. -->     "SECTION 12. 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 that are set forth in 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.
    (b) When entering into a contract under this chapter, each contractor shall provide the commission with information on the number of residents of Indiana who will be employed by the contractor and the number of residents of Indiana who will be employed by any subcontractor of the contractor.
    (c) 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 eighty percent (80%) 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 eighty percent (80%) of the employees who work on the subcontract.
    (d) Before August 15, 2013, and each year thereafter, the commission shall file with the commissioner of the Indiana department of administration 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 who are residents of Indiana.
    (e) 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 eighty percent (80%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least eighty percent (80%) of the employees who work on the subcontract.
    (f) A contractor or subcontractor who fails to employ residents of Indiana as at least eighty percent (80%) of the employees who work on the contract or subcontract commits a Class B infraction for each nonresident of Indiana employed in excess of the number of nonresident employees permitted by this section.

     (g) If:
        (1) a contract or subcontract awarded under 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, as determined by the federal agency providing the funds, for the contract;
employing eighty percent (80%) Indiana residents for the contract or any subcontract becomes a goal for the contract, and subsections (a) through (f) do not apply.

SOURCE: IC 8-23-9-4.6; (12)MO116305.13. -->     SECTION 13. 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 that are set forth in 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.
    (b) When entering into a contract under this chapter, each contractor shall provide the department with information on the number of residents of Indiana who will be employed by the contractor and the number of residents of Indiana who will be employed by any subcontractor of the contractor.
    (c) 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 eighty percent (80%) 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 eighty percent (80%) of the employees working on the subcontract.
    (d) Before August 15, 2013, and each year thereafter, the department shall file with the commissioner of the Indiana department of administration 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 who are residents of Indiana.
    (e) 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 eighty percent (80%) of the employees who work on the contract; and
        (2) enter into subcontracts only with subcontractors who employ residents of Indiana as at least eighty percent (80%) of the employees who work on the subcontract.
    (f) A contractor or subcontractor who fails to employ residents of Indiana as at least eighty percent (80%) of the employees who work on the contract or subcontract commits a Class B infraction for each nonresident of Indiana employed in excess of the number of nonresident employees permitted by this section.

     (g) If:
        (1) a contract or subcontract awarded under 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, as determined by the federal agency providing the funds, for the contract;
employing eighty percent (80%) Indiana residents for the contract or any subcontract becomes a goal for the contract, and subsections (a) through (f) do not apply.
".


SOURCE: Page 9, line 35; (12)MO116305.9. -->     Page 9, after line 35, begin a new paragraph and insert:
SOURCE: ; (12)MO116305.16. -->     "SECTION 16. An emergency is declared for this act.".
    Renumber all SECTIONS consecutively.
    (Reference is to EHB 1163 as printed February 8, 2012.)

________________________________________

Senator ARNOLD


MO116305/DI 92
2012