Introduced Version
SENATE BILL No. 197
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-13-1-16.5; IC 4-13.6-6-2.8; IC 5-16-1-7.5;
IC 8-10-1-7.7; IC 8-23-9-4.6.
Synopsis: State contracts. Provides that contracts for public works
projects may not be awarded to a contractor that does not: (1) employ
residents of Indiana as at least 80% of the employees working on the
contract; and (2) enter into subcontracts only with subcontractors that
employ residents of Indiana as at least 80% of the employees working
on the contract. Provides that if a contract is being paid for with federal
funds and the requirement that 80% of the employees must be residents
of Indiana causes the loss of the federal funds as determined by the
federal agency providing the funds, the use of 80% Indiana residents
is a goal and not a requirement. Applies this restriction to contracts
entered into by the public works division of the department of
administration, any state agency or commission entering into a public
works contract, the commission governing the ports of Indiana, and the
department of transportation. Requires the commissioner of the
department of administration to prepare an annual report for the public
and the legislative council stating, for the contractors awarded public
works contracts by the state and the subcontractors with which these
contractors entered into subcontracts, the percentage of the contractors'
and subcontractors' employees working on the public works contracts
who are residents of Indiana.
Effective: Upon passage.
Arnold, Breaux, Broden, Hume,
Lanane, Mrvan, Randolph, Rogers,
Simpson, Skinner, Tallian, Taylor,
Young R
January 4, 2012, read first time and referred to Committee on Commerce and Economic
Development.
Introduced
Second Regular Session 117th General Assembly (2012)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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NEW will appear in that style type in the introductory clause of each SECTION that adds
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between statutes enacted by the 2011 Regular Session of the General Assembly.
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 4-13-1-16.5; (12)LS6345.1. -->
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 4-13.6-6-2.8;
(2) IC 5-16-1-7.5;
(3) IC 8-10-1-7.7; or
(4) IC 8-23-9-4.6.
(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 and 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)LS6345.2. -->
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 and 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: IC 5-16-1-7.5; (12)LS6345.3. -->
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 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 and 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: IC 8-10-1-7.7; (12)LS6345.4. -->
SECTION 4. 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 and 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)LS6345.5. -->
SECTION 5. 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 and 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: ; (12)LS6345.6. -->
SECTION 6.
An emergency is declared for this act.