Introduced Version
HOUSE BILL No. 1731
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-22; IC 36-1.
Synopsis: Public purchasing. Increases the thresholds for small
purchases made by the state and governmental bodies. Provides that all
purchasing agencies may award a contract under the request for
proposal provisions of the law. Removes a provision that requires that
when conducting discussions with an offeror, information derived from
a proposal submitted by a competing offeror may not be disclosed.
Extends to all purchasing agents, and not just executive branch
agencies, the ability to discuss competing offers. Provides that
governmental entities may make purchases from other governmental
entities and, in certain circumstances, with a nonprofit entity if the
requirements of the public purchasing statutes are met.
Effective: July 1, 2007.
GiaQuinta
January 26, 2007, read first time and referred to Committee on Government and Regulatory
Reform.
Introduced
First Regular Session 115th General Assembly (2007)
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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2006 Regular Session of the General Assembly.
HOUSE BILL No. 1731
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 5-22-8-1; (07)IN1731.1.1. -->
SECTION 1. IC 5-22-8-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 1. (a) This chapter applies only to
a purchase expected by the purchasing agent to be less than
seventy-five thousand dollars ($75,000). one hundred fifty thousand
dollars ($150,000).
(b) Purchase requirements may not be artificially divided so as to
constitute a small purchase under this chapter.
SOURCE: IC 5-22-8-2; (07)IN1731.1.2. -->
SECTION 2. IC 5-22-8-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 2. (a) This section applies only if
the purchasing agent expects the purchase to be less than twenty-five
thousand dollars ($25,000). fifty thousand dollars ($50,000).
(b) A purchasing agent may make a purchase under small purchase
policies established by the purchasing agency or under rules adopted
by the governmental body.
SOURCE: IC 5-22-8-3; (07)IN1731.1.3. -->
SECTION 3. IC 5-22-8-3 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 3. (a) This section applies only if
the purchasing agent expects the purchase to be:
(1) at least twenty-five thousand dollars ($25,000); fifty thousand
dollars ($50,000); and
(2) not more than seventy-five thousand dollars ($75,000). one
hundred fifty thousand dollars ($150,000).
(b) A purchasing agent may purchase supplies under this section by
inviting quotes from at least three (3) persons known to deal in the
lines or classes of supplies to be purchased.
(c) The purchasing agent shall mail an invitation to quote to the
persons described in subsection (b) at least seven (7) days before the
time fixed for receiving quotes.
(d) If the purchasing agent receives a satisfactory quote, the
purchasing agent shall award a contract to the lowest responsible and
responsive offeror for each line of or class of supplies required.
(e) The purchasing agent may reject all quotes.
(f) If the purchasing agent does not receive a quote from a
responsible and responsive offeror, the purchasing agent may purchase
the supplies under IC 5-22-10-10.
SOURCE: IC 5-22-9-1; (07)IN1731.1.4. -->
SECTION 4. IC 5-22-9-1, AS AMENDED BY P.L.160-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 1. (a) When a purchasing agent makes a written
determination that the use of competitive sealed bidding is either not
practicable or not advantageous to the governmental body, the
purchasing agent may award a contract using the procedure provided
by this chapter instead of competitive sealed bidding under IC 5-22-7.
(b) This subsection applies only to a purchasing agent in the
executive branch. Notwithstanding subsection (a), and subject Subject
to the policies of the purchasing agency, a purchasing agent may award
a contract using the procedure provided by this chapter.
SOURCE: IC 5-22-9-9; (07)IN1731.1.5. -->
SECTION 5. IC 5-22-9-9, AS AMENDED BY P.L.160-2006,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 9. (a) Offerors must be accorded fair and equal
treatment with respect to any opportunity for discussion and revisions
of proposals.
(b) Except as provided in subsection (c), in conducting discussions
with an offeror, information derived from proposals submitted by
competing offerors may not be disclosed.
(c) (b) This subsection applies only to a purchasing agency in the
executive branch. In conducting discussions with an offeror,
information derived from proposals submitted by competing offerors
may be used in discussion.
only if the identity of the offeror providing
the information is not disclosed to others. The purchasing agency must
provide equivalent information to all offerors with which the
purchasing agency chooses to have discussions.
SOURCE: IC 36-1-7-12; (07)IN1731.1.6. -->
SECTION 6. IC 36-1-7-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 12. (a) Whenever a
contract provides for the purchase, sale, or exchange of services,
supplies, or equipment between or among Indiana governmental
entities only, no notice by publication or posting is required.
(b) Whenever a contract provides for one (1) Indiana governmental
entity to make a purchase for another, compliance by the one with the
applicable statutes governing public bids constitutes compliance by the
other.
(c) A governmental entity may make a purchase from any other
governmental entity if there is compliance with state purchasing
law by the original purchasing unit.
(d) Two (2) or more governmental entities may procure together
or with a nonprofit entity if the requirements of the public
purchasing statutes are met. A formalized interlocal agreement
under this chapter is not required for joint purchases under this
subsection.
SOURCE: IC 36-1-12-4.7; (07)IN1731.1.7. -->
SECTION 7. IC 36-1-12-4.7, AS AMENDED BY P.L.169-2006,
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 4.7. (a) This section applies whenever a public
work project is estimated to cost:
(1) at least twenty-five thousand dollars ($25,000) and less than
seventy-five thousand dollars ($75,000) one hundred fifty
thousand dollars ($150,000) in:
(A) a consolidated city or second class city;
(B) a county containing a consolidated city or second class
city; or
(C) a regional water or sewage district established under
IC 13-26; or
(2) at least twenty-five thousand dollars ($25,000) and less than
fifty thousand dollars ($50,000) in a political subdivision or
agency not described in subdivision (1).
(b) The board must proceed under the following provisions:
(1) The board shall invite quotes from at least three (3) persons
known to deal in the class of work proposed to be done by mailing
them a notice stating that plans and specifications are on file in a
specified office. The notice must be mailed not less than seven (7)
days before the time fixed for receiving quotes.
(2) The board may not require a person to submit a quote before
the meeting at which quotes are to be received. The meeting for
receiving quotes must be open to the public. All quotes received
shall be opened publicly and read aloud at the time and place
designated and not before.
(3) The board shall award the contract for the public work to the
lowest responsible and responsive quoter.
(4) The board may reject all quotes submitted.
SOURCE: IC 36-1-12-5; (07)IN1731.1.8. -->
SECTION 8. IC 36-1-12-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 5. (a) This section
applies whenever a public work project is estimated to cost less than
twenty-five thousand dollars ($25,000). one hundred fifty thousand
dollars ($150,000). Except as provided in subsection (g) for local
boards of aviation commissioners and local airport authorities, if a
contract is to be awarded, the board may proceed under section 4 of
this chapter or under subsection (b) or (c).
(b) The board must proceed under the following provisions:
(1) The board shall invite quotes from at least three (3) persons
known to deal in the class of work proposed to be done by mailing
them a notice stating that plans and specifications are on file in a
specified office. The notice must be mailed not less than seven (7)
days before the time fixed for receiving quotes.
(2) The board may not require a person to submit a quote before
the meeting at which quotes are to be received. The meeting for
receiving quotes must be open to the public. All quotes received
shall be opened publicly and read aloud at the time and place
designated and not before.
(3) The board shall award the contract for the public work to the
lowest responsible and responsive quoter.
(4) The board may reject all quotes submitted.
(5) If the board rejects all quotes under subdivision (4) of this
section, the board may negotiate and enter into agreements for the
work in the open market without inviting or receiving quotes if
the board establishes in writing the reasons for rejecting the
quotes.
(c) The board may not proceed under subsection (b) for the
resurfacing (as defined in IC 8-14-2-1) of a road, street, or bridge,
unless:
(1) the weight or volume of the materials in the project is capable
of accurate measurement and verification; and
(2) the specifications define the geographic points at which the
project begins and ends.
(d) For the purposes of this section, if contiguous sections of a road,
street, or bridge are to be resurfaced in a calendar year, all of the work
shall be considered to comprise a single public work project.
(e) The board may purchase or lease supplies in the manner
provided in IC 5-22 and perform the public work by means of its own
workforce without awarding a public work contract.
(f) Before the board may perform any work under this section by
means of its own workforce, the political subdivision or agency must
have a group of employees on its staff who are capable of performing
the construction, maintenance, and repair applicable to that work.
(g) This subsection applies to local boards of aviation
commissioners operating under IC 8-22-2 and local airport authorities
operating under IC 8-22-3. If the contract is to be awarded by a board
to which this subsection applies, or to a designee of the board under
subsection (h), the board or its designee may proceed under section 4
of this chapter or under the following provisions. The board or its
designee may invite quotes from at least three (3) persons known to
deal in the class of work proposed to be done by mailing the persons a
copy of the plans and specifications for the work not less than seven (7)
days before the time fixed for receiving quotes. If the board or its
designee receives a satisfactory quote, the board or its designee shall
award the contract to the lowest responsible and responsive quoter for
the class of work required. The board or its designee may reject all
quotes submitted and, if no valid quotes are received for the class of
work, contract for the work without further invitations for quotes.
(h) The board may delegate its authority to award a contract for a
public works project that is estimated to cost less than fifty thousand
dollars ($50,000) to the airport personnel in charge of airport public
works projects.
(i) Except for projects under subsection (g), quotes for public
works projects costing less than twenty-five thousand dollars
($25,000) may be obtained by soliciting at least three (3) quotes by
telephone or facsimile transmission. The seven (7) day waiting
period required by subsection (b)(1) does not apply to quotes
solicited under this subsection.