Bill Text: IN SB0289 | 2011 | Regular Session | Introduced
Bill Title: State purchasing preferences.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-01-06 - First reading: referred to Committee on Tax and Fiscal Policy [SB0289 Detail]
Download: Indiana-2011-SB0289-Introduced.html
Citations Affected: IC 5-22-15.
Synopsis: State purchasing preferences. Establishes a 15% price
preference for purchases by the state from American businesses.
Changes the price preference for purchases by the state from Indiana
businesses from a declining percentage scale based on cost to a
constant: (1) 15% with respect to a business that is not an Indiana
business but is an American business; and (2) 30% with respect to a
business that is neither an Indiana business nor an American business.
Effective: July 1, 2011.
January 6, 2011, read first time and referred to Committee on Tax and Fiscal Policy.
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A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
(b) As used in this section, "American business" refers to any of the following:
(1) A business whose principal place of business is located in the United States.
(2) A business that pays a majority of its payroll (in dollar volume) to citizens of the United States.
(3) A business that employs citizens of the United States as a majority of its employees.
(c) The Indiana department of administration shall consult with the Indiana economic development corporation in developing criteria for determining whether a business is an American business under subsection (b). The Indiana department of administration may consult with the Indiana economic
development corporation or any other person that performs
economic or business analysis to determine whether a particular
business meets the requirements of this section and the criteria
developed under this subsection.
(d) There is a price preference of fifteen percent (15%) for
supplies purchased from an American business.
(e) Notwithstanding subsection (d), a contract shall be awarded
to the lowest responsive and responsible offeror, regardless of the
preference provided in this section, if that offeror is an American
business.
(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
American business described in subsection (b)(1), the
business must include a statement explaining the reasons
the business considers the named location as its principal
place of business.
(B) The amount of the business's total payroll and the
amount of the business's payroll paid to citizens of the
United States.
(C) The number of the business's employees and the
number of the business's employees who are citizens of the
United States.
(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 Fifteen percent (5%) (15%) for a purchase expected by
the state agency to be less than five hundred thousand dollars
($500,000). with respect to another business that is not an
Indiana business but is an American business (as defined in
section 20.3 of this chapter).
(2) Three Thirty percent (3%) (30%) 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). with
respect to another business that is neither an Indiana business
nor an American business (as defined in section 20.3 of this
chapter).
(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 that offeror is an Indiana business; or
(2) the that 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.
(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.
