Indiana § 4-13-20-5 - Premiums

§ 4-13-20-5. Premiums

Sec. 5. A teacher purchasing coverage under this chapter shall pay the full premium for the teacher's coverage.

As added by P.L.223-2013, SEC.2.

IC 4-13.1ARTICLE 13.1. OFFICE OF TECHNOLOGY

Ch. 1.Definitions Ch. 2.Office of Technology Ch. 3.Accessibility Standards Ch. 4.Technology Resources, Cybersecurity, and Infrastructure Standards Ch. 5.Inventory of Artificial Intelligence Systems

IC 4-13.1-1Chapter 1. Definitions

4-13.1-1-1Applicability 4-13.1-1-1.3"Attack vector" 4-13.1-1-1.5"Cybersecurity incident" 4-13.1-1-2"Information technology" 4-13.1-1-3"Office" 4-13.1-1-4"State agency" 4-13.1-1-5"Telecommunication"

IC 4-13.1-1-1Applicability Sec. 1. The definitions in this chapter apply throughout this article.

As added by P.L.177-2005, SEC.9.

IC 4-13.1-1-1.3"Attack vector" Sec. 1.3. "Attack vector" means a method or way for attacking, infiltrating, or otherwise compromising a computer network or system.

As added by P.L.134-2021, SEC.1.

IC 4-13.1-1-1.5"Cybersecurity incident" Sec. 1.5. (a) "Cybersecurity incident" means a malicious or suspicious occurrence that consists of one (1) or more of the categories of attack vectors described in subsection (b) and defined on the office's website that:

(1) jeopardizes or may potentially jeopardize the confidentiality, integrity, or availability of an information system, an operational system, or the information that such systems process, store, or transmit;

(2) jeopardizes or may potentially jeopardize the health and safety of the public; or

(3) violates security policies, security procedures, or acceptable use policies.

(b) A cybersecurity incident may consist of one (1) or more of the following categories of attack vectors:

(1) Ransomware.

(2) Business electronic mail compromise.

(3) Vulnerability exploitation.

(4) Zero-day exploitation.

(5) Distributed denial of service.

(6) Website defacement.

(7) Other sophisticated attacks as defined by the chief information officer and that are posted on the office's website.

As added by P.L.134-2021, SEC.2. Amended by P.L.1-2025, SEC.21.

IC 4-13.1-1-2"Information technology" Sec. 2. "Information technology" includes the resources, technologies, and services associated with the fields of:

(1) information processing;

(2) office automation;

(3) telecommunication facilities and networks;

(4) data input and storage; and

(5) information system applications.

As added by P.L.177-2005, SEC.9.

IC 4-13.1-1-3"Office" Sec. 3. "Office" means the office of technology established by IC 4-13.1-2-1.

As added by P.L.177-2005, SEC.9.

IC 4-13.1-1-4"State agency" Sec. 4. (a) "State agency" means an authority, a board, a branch, a commission, a committee, a department, a division, or another instrumentality of the executive, including the administrative, department of state government.

(b) The term does not include:

(1) the judicial or legislative departments of state government;

(2) a state educational institution; or

(3) the Indiana higher education telecommunications system.

As added by P.L.177-2005, SEC.9. Amended by P.L.2-2007, SEC.38.

IC 4-13.1-1-5"Telecommunication" Sec. 5. "Telecommunication" means the transmission of any document, picture, datum, sound, or other symbol by television, radio, microwave, optical, or other electromagnetic signal.

As added by P.L.177-2005, SEC.9.

IC 4-13.1-2Chapter 2. Office of Technology

4-13.1-2-1Office; purpose 4-13.1-2-2Office; duties 4-13.1-2-3Chief information officer 4-13.1-2-4Fees for enhanced access to public records 4-13.1-2-5State agency use of office services 4-13.1-2-6Office; state agencies 4-13.1-2-7Rotary fund 4-13.1-2-8Office; assist political subdivisions 4-13.1-2-9State agency reporting requirements 4-13.1-2-10State educational institution reporting requirements

IC 4-13.1-2-1Office; purpose Sec. 1. The office of technology is established for the following purposes:

(1) Establish the standards for the technology infrastructure of the state.

(2) Focus state information technology services to improve service levels to citizens and lower the costs of providing information technology services.

(3) Bring the best and most appropriate technology solutions to bear on state technology applications.

(4) Improve and expand government services provided electronically.

(5) Provide for the technology and procedures for the state to do business with the greatest security possible.

As added by P.L.177-2005, SEC.9.

IC 4-13.1-2-2Office; duties Sec. 2. (a) The office shall do the following:

(1) Develop and maintain overall strategy and architecture for the use of information technology in state government.

(2) Review state agency budget requests and proposed contracts relating to information technology at the request of the budget agency.

(3) Coordinate state information technology master planning.

(4) Maintain an inventory of significant information technology resources and expenditures.

(5) Maintain a repository of cybersecurity incidents.

(6) Manage a computer gateway to carry out or facilitate public, educational, and governmental functions.

(7) Provide technical staff support services for state agencies.

(8) Provide services that may be requested by the following:

(A) The judicial department of state government.

(B) The legislative department of state government.

(C) A state educational institution.

(D) A political subdivision (as defined in IC 36-1-2-13).

(E) A body corporate and politic created by statute.

(F) An entity created by the state.

(9) Monitor trends and advances in information technology.

(10) Review projects, architecture, security, staffing, and expenditures.

(11) Develop and maintain policies, procedures, and guidelines for the effective and secure use of information technology in state government.

(12) Advise the state personnel department on guidelines for information technology staff for state agencies.

(13) Conduct periodic management reviews of information technology activities within state agencies upon request.

(14) Seek funding for technology services from the following:

(A) Grants.

(B) Federal sources.

(C) Gifts, donations, and bequests.

(D) Partnerships with other governmental entities or the private sector.

(E) Appropriations.

(F) Any other source of funds.

(15) Perform other information technology related functions and duties as directed by the governor.

(b) The office may adopt rules under IC 4-22-2 that are necessary or appropriate in carrying out its powers and duties.

As added by P.L.177-2005, SEC.9. Amended by P.L.2-2007, SEC.39; P.L.134-2021, SEC.3.

IC 4-13.1-2-3Chief information officer Sec. 3. (a) The governor shall appoint a chief information officer of the office, who serves at the pleasure of the governor.

(b) The chief information officer:

(1) is the executive head of the office;

(2) is responsible for strategic planning and the architecture for information technology functions of state government; and

(3) shall provide leadership for information technology issues facing state agencies.

As added by P.L.177-2005, SEC.9.

IC 4-13.1-2-4Fees for enhanced access to public records Sec. 4. The chief information officer, in conjunction with:

(1) the budget director or the budget director's designee;

(2) the director of the Indiana archives and records administration or the director's designee; and

(3) a representative from each of the two (2) state agencies that generate the most revenue under this section;

shall establish reasonable fees for enhanced access to public records and other electronic records, so that the revenues generated are sufficient to develop, maintain, operate, and expand services that make public records available electronically. A meeting to establish or revise the fees described in this section is subject to the requirements of IC 5-14-1.5.

As added by P.L.177-2005, SEC.9. Amended by P.L.171-2015, SEC.3; P.L.165-2021, SEC.44.

IC 4-13.1-2-5State agency use of office services Sec. 5. State agencies shall use information technology services provided by the office when directed by the governor.

As added by P.L.177-2005, SEC.9.

IC 4-13.1-2-6Office; state agencies Sec. 6. (a) The office may request the director of information technology services or another knowledgeable individual employed by a state agency to advise and assist the office in carrying out the functions of the office.

(b) State agencies may consult with the office concerning hiring information technology directors and staff.

(c) At the request of the office, a state agency shall submit an inventory of all significant information technology hardware, software, personnel, and information technology contracts.

As added by P.L.177-2005, SEC.9.

IC 4-13.1-2-7Rotary fund Sec. 7. The office may establish a rotary fund necessary to perform the functions of the office.

As added by P.L.177-2005, SEC.9.

IC 4-13.1-2-8Office; assist political subdivisions Sec. 8. (a) If requested by a political subdivision, the office may do the following:

(1) Subject to the approval of the budget agency, develop a schedule of fees for agencies using services of the office.

(2) Assist a political subdivision in coordinating information technology systems.

(3) Provide consulting and technical advisory services.

(4) Review information technology project plans and expenditures.

(5) Develop and maintain policies, procedures, and guidelines for the effective use of information technology in interactions between political subdivisions and state agencies.

(6) Develop a list of third party technology providers that work with the office.

(b) The office may request a director of information technology services or other knowledgeable individuals employed by a political subdivision to advise and assist the office in exercising the powers granted in this section.

(c) The office may conduct studies and reviews that the office considers necessary to promote the use of high quality, cost effective information technology within local government.

As added by P.L.177-2005, SEC.9. Amended by P.L.134-2021, SEC.4.

IC 4-13.1-2-9State agency reporting requirements Sec. 9. (a) This section does not apply to an entity subject to IC 13-18-16.5.

(b) A state agency (as defined in IC 4-1-10-2) other than a state educational institution, and a political subdivision (as defined in IC 36-1-2-13), other than a department of public utilities established under IC 8-1-11.1, shall:

(1) report any cybersecurity incident using their best professional judgment to the office without unreasonable delay and not later than two (2) business days after discovery of the cybersecurity incident in a format prescribed by the chief information officer; and

(2) provide the office with the name and contact information of any individual who will act as the primary reporter of a cybersecurity incident described in subdivision (1) before September 1, 2021, and before September 1 of every year thereafter.

Nothing in this section shall be construed to require reporting that conflicts with federal privacy laws or is prohibited due to an ongoing law enforcement investigation.

As added by P.L.134-2021, SEC.5. Amended by P.L.137-2021, SEC.18; P.L.139-2025, SEC.1; P.L.142-2025, SEC.1; P.L.186-2025, SEC.283; P.L.23-2026, SEC.11.

IC 4-13.1-2-10State educational institution reporting requirements Sec. 10. A state educational institution (as defined in IC 21-7-13-32) shall:

(1) submit a summary analysis report of cyber security incidents to the office on a quarterly basis in a format prescribed by the chief information officer; and

(2) provide the office with the name and contact information of any individual who will act as the primary reporter of a summary report of cybersecurity incidents described in subdivision (1) before September 1, 2021, and before September 1 of every year thereafter.

Nothing in this section shall be construed to require reporting by the state educational institution that conflicts with federal privacy laws or is prohibited due to an ongoing law enforcement investigation.

As added by P.L.134-2021, SEC.6.

IC 4-13.1-3Chapter 3. Accessibility Standards

4-13.1-3-1Accessibility standards

IC 4-13.1-3-1Accessibility standards Sec. 1. (a) The office shall appoint a group to develop standards that are compatible with principles and goals contained in the electronic and information technology accessibility standards adopted by the architectural and transportation barriers compliance board under Section 508 of the federal Rehabilitation Act of 1973 (29 U.S.C. 794d), as amended. The office shall adopt rules under IC 4-22-2 concerning the standards developed under this section. Those standards must conform with the requirements of Section 508 of the federal Rehabilitation Act of 1973 (29 U.S.C. 794d), as amended.

(b) The group shall consist of at least the following:

(1) A representative of an organization with experience in and knowledge of assistive technology policy.

(2) An individual with a disability.

(3) Representatives of the judicial and legislative branches of state government.

(4) Representatives of the administrative branch of state government.

(5) At least three (3) representatives of local units of government.

(c) If an entity subject to the requirements of this section cannot readily comply with the information technology accessibility standards without undue burden, the entity shall submit a plan to the office with a proposed time for later compliance with the standards. A plan submitted under this subsection must provide alternative means for accessibility during the period of noncompliance.

(d) Notwithstanding any other law, the standards developed under subsection (a) apply to the executive, legislative, judicial, and administrative branches of state and local government.

As added by P.L.177-2005, SEC.9.

IC 4-13.1-4Chapter 4. Technology Resources, Cybersecurity, and Infrastructure Standards

4-13.1-4-1"Political subdivision" 4-13.1-4-2"Public entity" 4-13.1-4-3"School corporation" 4-13.1-4-4"State educational institution" 4-13.1-4-5Development and adoption of technology resources policies, cybersecurity policies, and training programs 4-13.1-4-6Submission of cybersecurity policy and assessment to office of technology 4-13.1-4-7Public access to technology resources policies and cybersecurity policies 4-13.1-4-8Requirements for connection to state technology infrastructure 4-13.1-4-9State software and remote server contracts

IC 4-13.1-4-1"Political subdivision" Sec. 1. As used in this chapter, "political subdivision" has the meaning set forth in IC 36-1-2-13.

As added by P.L.108-2024, SEC.2.

IC 4-13.1-4-2"Public entity" Sec. 2. (a) Except as provided in subsection (b), as used in this chapter, "public entity" means a:

(1) political subdivision;

(2) state agency;

(3) school corporation; or

(4) state educational institution.

(b) The term does not include an acute care hospital licensed under IC 16-21 that is established and operated under IC 16-22-2, IC 16-22-8, or IC 16-23, or a department of public utilities established under IC 8-1-11.1.

As added by P.L.108-2024, SEC.2. Amended by P.L.142-2025, SEC.2; P.L.23-2026, SEC.12.

IC 4-13.1-4-3"School corporation" Sec. 3. As used in this chapter, "school corporation" has the meaning set forth in IC 20-18-2-16(a).

As added by P.L.108-2024, SEC.2.

IC 4-13.1-4-4"State educational institution" Sec. 4. As used in this chapter, "state educational institution" has the meaning set forth in IC 21-7-13-32.

As added by P.L.108-2024, SEC.2.

IC 4-13.1-4-5Development and adoption of technology resources policies, cybersecurity policies, and training programs Sec. 5. (a) The office shall:

(1) develop:

(A) standards and guidelines regarding cybersecurity for use by political subdivisions and state educational institutions; and

(B) a uniform cybersecurity policy for use by state agencies; and

(2) develop, in collaboration with the department of education:

(A) a uniform technology resources policy governing use of technology resources by the employees of a school corporation; and

(B) a uniform cybersecurity policy for use by school corporations.

(b) Not later than December 31, 2027, each public entity shall adopt the following:

(1) A policy governing use of technology resources by the public entity's employees. If the public entity is a school corporation, the public entity shall adopt the uniform technology resources policy developed under subsection (a)(2)(A).

(2) A cybersecurity policy as follows:

(A) If the public entity is a political subdivision or state educational institution, the public entity shall adopt a cybersecurity policy based on standards and guidelines developed under subsection (a)(1)(A).

(B) If the public entity is a school corporation, the public entity shall adopt the uniform cybersecurity policy developed under subsection (a)(2)(B).

(C) If the public entity is a state agency, the public entity shall adopt the uniform cybersecurity policy developed under subsection (a)(1)(B).

(3) A training program regarding the public entity's technology resources policy adopted under subdivision (1) and cybersecurity policy adopted under subdivision (2), completion of which is mandatory for the public entity's employees.

(c) The uniform technology resources policy developed under subsection (a)(2)(A) and a technology resources policy adopted by a public entity other than a school corporation under subsection (b)(1) must:

(1) prohibit an employee of the public entity from using the public entity's technology resources to:

(A) engage in lobbying (as defined in IC 2-7-1-9) that is outside the scope of the employee's duties;

(B) engage in illegal activity; or

(C) violate the public entity's cybersecurity policy; and

(2) include disciplinary procedures for violation of the technology resources policy.

As added by P.L.108-2024, SEC.2. Amended by P.L.142-2025, SEC.3.

IC 4-13.1-4-6Submission of cybersecurity policy and assessment to office of technology Sec. 6. (a) Not later than December 31 of each odd-numbered year, a public entity shall submit to the office the public entity's cybersecurity policy adopted by the public entity under section 5 of this chapter.

(b) The office shall establish a procedure for collecting and maintaining a record of cybersecurity policies submitted to the office under subsection (a).

(c) If a public entity engages a third party to conduct an assessment of the public entity's cybersecurity policy, the public entity shall provide the results of the assessment to the office.

As added by P.L.108-2024, SEC.2. Amended by P.L.142-2025, SEC.4.

IC 4-13.1-4-7Public access to technology resources policies and cybersecurity policies Sec. 7. (a) The technology resources policy adopted by a public entity under section 5 of this chapter is a public record under IC 5-14-3.

(b) The cybersecurity policy adopted by a public entity under section 5 of this chapter is confidential and may not be disclosed to the public under IC 5-14-3.

As added by P.L.108-2024, SEC.2.

IC 4-13.1-4-8Requirements for connection to state technology infrastructure Sec. 8. (a) A public entity that connects to the technology infrastructure of the state after July 1, 2027, must:

(1) have completed a cybersecurity assessment within the three (3) year period immediately preceding the first date after July 1, 2027, on which the public entity connects to the technology infrastructure of the state;

(2) complete a cybersecurity assessment at least once every three (3) years after the first date after July 1, 2027, on which the public entity connects to the technology infrastructure of the state;

(3) provide proof to the office of the public entity's compliance with subdivisions (1) and (2) upon request by the office;

(4) if the public entity is a state agency or political subdivision, have an "in.gov" or ".gov" domain name; and

(5) have a secondary end user authentication mechanism.

(b) An entity that is not a public entity and that connects to the technology infrastructure of the state after July 1, 2026, must:

(1) have completed a cybersecurity assessment within the two (2) year period immediately preceding the first date after July 1, 2026, on which the entity connects to the technology infrastructure of the state;

(2) complete a cybersecurity assessment:

(A) at least once every two (2) years after the first date after July 1, 2026, on which the entity connects to the technology infrastructure of the state; and

(B) biennially for as long as the entity connects to the technology infrastructure of the state;

(3) provide proof to the office of the entity's compliance with subdivisions (1) and (2) upon request by the office; and

(4) have a secondary end user authentication mechanism.

(c) At the discretion of the office:

(1) a public entity that is not in compliance with subsection (a); or

(2) an entity that is not in compliance with subsection (b);

may be disconnected from the technology infrastructure of the state.

As added by P.L.108-2024, SEC.2.

IC 4-13.1-4-9State software and remote server contracts Sec. 9. (a) This section applies to a contract entered into between a state agency and a person under which the state agency receives a license to use a software application designed to run on generally available desktop or server hardware.

(b) A person with which a state agency enters into a contract described in subsection (a) may not, as a provision of the contract or as a condition of the person entering into the contract:

(1) require that the state agency install or run the software on hardware dedicated solely to the state agency; or

(2) otherwise restrict the state agency from installing or running the software on hardware of the state agency's choosing.

(c) If a state agency enters into a contract with a person under which the state agency runs software on hardware owned or operated by the person, the office of technology established by IC 4-13.1-2-1 shall ensure that the state agency fully complies with the licensing terms of all software run on the person's hardware.

As added by P.L.108-2024, SEC.2.

IC 4-13.1-5Chapter 5. Inventory of Artificial Intelligence Systems

4-13.1-5-1"Artificial intelligence" 4-13.1-5-2"State agency" 4-13.1-5-3State agency inventory of artificial intelligence technologies 4-13.1-5-4Form for artificial intelligence technology inventory 4-13.1-5-5Expiration

IC 4-13.1-5-1"Artificial intelligence" Sec. 1. As used in this chapter, "artificial intelligence" means computing technology that is capable of simulating human learning, reasoning, and deduction through processes such as:

(1) acquiring and analyzing information for the purpose of improving operational accuracy through improved contextual knowledge;

(2) identifying patterns in data; and

(3) improving operational outcomes by analyzing the results of a previous operation and using the analysis to modify the operation to achieve an improved result.

As added by P.L.108-2024, SEC.3.

IC 4-13.1-5-2"State agency" Sec. 2. Notwithstanding IC 4-13.1-1-4, as used in this chapter, "state agency":

(1) means an authority, a board, a branch, a commission, a committee, a department, a division, or another instrumentality of:

(A) the executive, including the administrative; or

(B) the legislative;

department of state government; and

(2) does not include the judicial department of state government.

As added by P.L.108-2024, SEC.3.

IC 4-13.1-5-3State agency inventory of artificial intelligence technologies Sec. 3. (a) Not later than November 1, 2025, each state agency may:

(1) compile, in a form specified by the office, an inventory of all artificial intelligence technologies that are:

(A) in use; or

(B) being developed or considered by the state agency for use;

by the state agency; and

(2) submit the inventory to:

(A) the office; and

(B) the executive director of the legislative services agency for distribution to the members of the artificial intelligence task force established by IC 2-5-53.7.

(b) A state agency's inventory under subsection (a) must include the following information for each artificial intelligence technology included in the inventory:

(1) The vendor of the artificial intelligence technology.

(2) A description of the function and capabilities of the artificial intelligence technology.

(3) A description of:

(A) the purpose or purposes for which the state agency uses the artificial intelligence technology; and

(B) any purpose in addition to the purpose or purposes described in clause (A) for which the state agency contemplates using the artificial intelligence technology in the future;

and examples of the data or information produced by the artificial intelligence technology for each purpose described in clause (A).

(4) Whether the artificial intelligence technology provides:

(A) the state agency with information or data that is used by the state agency to inform decisions made by the state agency; or

(B) decisions, without human intervention, that are implemented by the state agency.

(5) The:

(A) types of information or data used by the artificial intelligence technology; and

(B) source of the information or data used by the artificial intelligence technology.

(6) The manner in which the state agency secures the:

(A) artificial intelligence technology;

(B) information or data used by the artificial intelligence technology; and

(C) information or data produced by the artificial intelligence technology;

from unauthorized access.

(7) Any person with which the state agency shares the information or data produced by the artificial intelligence technology and the purpose for which the state agency shares the information or data with the person.

(8) The documented or anticipated benefits and risks of the state agency's use of the artificial intelligence technology for both:

(A) the state agency; and

(B) Indiana residents served by the state agency;

and any information or data used by the state agency in the state agency's assessment of the benefits and risks of the state agency's use of the artificial intelligence technology.

(9) The fiscal effect of the state agency's use of the artificial intelligence technology, including the following:

(A) Costs associated with the artificial intelligence technology, including:

(i) initial acquisition or development costs; and

(ii) ongoing operating costs, including costs of licensing, maintenance, legal compliance, and data storage and security.

(B) Any funding source that is used, or could be used, by the state agency to defray the costs described in clause (A).

(C) An estimate of the degree to which the costs described in clause (A) are offset by a reduction in the state agency's operating costs attributable to the state agency's use of the artificial intelligence technology.

(10) Whether the artificial intelligence technology has been tested or evaluated by an independent third party.

(11) Whether the data or information produced by the artificial intelligence technology has been:

(A) evaluated for bias; and

(B) found to exhibit bias.

As added by P.L.108-2024, SEC.3.

IC 4-13.1-5-4Form for artificial intelligence technology inventory Sec. 4. Not later than August 1, 2025, the office may prescribe a form for use by state agencies for compilation and submission of the inventory under section 3 of this chapter.

As added by P.L.108-2024, SEC.3.

IC 4-13.1-5-5Expiration Sec. 5. This chapter expires December 31, 2027.

As added by P.L.108-2024, SEC.3.

IC 4-13.4ARTICLE 13.4. REPEALEDRepealed by P.L.49-1997, SEC.86.

IC 4-13.5ARTICLE 13.5. CONSTRUCTION OF STATE OFFICE BUILDINGS AND OTHER FACILITIES

Ch. 1.Repealed Ch. 1.5.Energy Cost Savings Projects Ch. 2.Repealed Ch. 3.Repealed Ch. 4.Repealed Ch. 5.Repealed

IC 4-13.5-1Chapter 1. RepealedRepealed by P.L.189-2018, SEC.12.

IC 4-13.5-1.5Chapter 1.5. Energy Cost Savings Projects

4-13.5-1.5-1Repealed 4-13.5-1.5-2Repealed 4-13.5-1.5-3Repealed 4-13.5-1.5-4Repealed 4-13.5-1.5-5Repealed 4-13.5-1.5-6Repealed 4-13.5-1.5-7Repealed 4-13.5-1.5-8Repealed 4-13.5-1.5-9Repealed 4-13.5-1.5-10Repealed 4-13.5-1.5-10.5"Energy cost savings contract" defined 4-13.5-1.5-10.6"Governmental body" defined 4-13.5-1.5-10.7"Qualified energy savings project" defined 4-13.5-1.5-10.8"Qualified provider" defined 4-13.5-1.5-11Powers of commission 4-13.5-1.5-12Advisory recommendation to commission 4-13.5-1.5-13Contractor and subcontractor records 4-13.5-1.5-14Reduction of state appropriations due to energy cost savings prohibited 4-13.5-1.5-15Bonds not a debt of the state 4-13.5-1.5-16Commission's authority to contract

IC 4-13.5-1.5-1RepealedAs added by P.L.23-1997, SEC.1. Repealed by P.L.58-1999, SEC.12 and P.L.172-1999, SEC.11.

IC 4-13.5-1.5-2RepealedAs added by P.L.23-1997, SEC.1. Repealed by P.L.58-1999, SEC.12 and P.L.172-1999, SEC.11.

IC 4-13.5-1.5-3RepealedAs added by P.L.23-1997, SEC.1. Repealed by P.L.58-1999, SEC.12 and P.L.172-1999, SEC.11.

IC 4-13.5-1.5-4RepealedAs added by P.L.23-1997, SEC.1. Repealed by P.L.58-1999, SEC.12 and P.L.172-1999, SEC.11.

IC 4-13.5-1.5-5RepealedAs added by P.L.23-1997, SEC.1. Repealed by P.L.58-1999, SEC.12 and P.L.172-1999, SEC.11.

IC 4-13.5-1.5-6RepealedAs added by P.L.23-1997, SEC.1. Repealed by P.L.58-1999, SEC.12 and P.L.172-1999, SEC.11.

IC 4-13.5-1.5-7RepealedAs added by P.L.23-1997, SEC.1. Repealed by P.L.58-1999, SEC.12 and P.L.172-1999, SEC.11.

IC 4-13.5-1.5-8RepealedAs added by P.L.23-1997, SEC.1. Repealed by P.L.58-1999, SEC.12 and P.L.172-1999, SEC.11.

IC 4-13.5-1.5-9RepealedAs added by P.L.23-1997, SEC.1. Repealed by P.L.58-1999, SEC.12 and P.L.172-1999, SEC.11.

IC 4-13.5-1.5-10RepealedAs added by P.L.23-1997, SEC.1. Repealed by P.L.58-1999, SEC.12 and P.L.172-1999, SEC.11.

IC 4-13.5-1.5-10.5"Energy cost savings contract" defined Sec. 10.5. As used in this chapter, "energy cost savings contract" has the meaning set forth in IC 4-13.6-8-2.

As added by P.L.58-1999, SEC.1 and P.L.172-1999, SEC.1.

IC 4-13.5-1.5-10.6"Governmental body" defined Sec. 10.6. As used in this chapter, "governmental body" has the meaning set forth in IC 4-13.6-1-9.

As added by P.L.58-1999, SEC.2 and P.L.172-1999, SEC.2.

IC 4-13.5-1.5-10.7"Qualified energy savings project" defined Sec. 10.7. As used in this chapter, "qualified energy savings project" has the meaning set forth in IC 4-13.6-8-3.

As added by P.L.58-1999, SEC.3 and P.L.172-1999, SEC.3.

IC 4-13.5-1.5-10.8"Qualified provider" defined Sec. 10.8. As used in this chapter, "qualified provider" has the meaning set forth in IC 4-13.6-8-4.

As added by P.L.58-1999, SEC.4 and P.L.172-1999, SEC.4.

IC 4-13.5-1.5-11Powers of commission Sec. 11. If the commission approves a project under this chapter, the commission may do the following:

(1) Negotiate the terms of an energy cost savings contract with the qualified provider.

(2) Enter into an energy cost savings contract with the qualified provider.

(3) Finance the contract in the same manner that the commission finances other facilities under this article, including entering into a use and occupancy agreement with the department.

As added by P.L.23-1997, SEC.1.

IC 4-13.5-1.5-12Advisory recommendation to commission Sec. 12. Before entering into a contract under this chapter, both of the following must give an advisory recommendation to the commission recommending the contract:

(1) The budget committee.

(2) The department.

As added by P.L.23-1997, SEC.1.

IC 4-13.5-1.5-13Contractor and subcontractor records Sec. 13. (a) The contractor and each subcontractor engaged in installing energy conservation measures under a guaranteed energy cost savings contract shall keep full and accurate records indicating the names, classifications, and work performed by each worker employed by the respective contractor and subcontractor in connection with the work together with an accurate record of the number of hours worked by each worker and the actual wages paid.

(b) The payroll records required to be kept under this section must be open to inspection by an authorized representative of the commission and the department of labor.

As added by P.L.23-1997, SEC.1. Amended by P.L.252-2015, SEC.1.

IC 4-13.5-1.5-14Reduction of state appropriations due to energy cost savings prohibited Sec. 14. The amount of state appropriations available to a governmental body may not be reduced because of energy cost savings and operational cost savings realized from a qualified energy savings project and an energy cost savings contract.

As added by P.L.23-1997, SEC.1. Amended by P.L.58-1999, SEC.5 and P.L.172-1999, SEC.5.

IC 4-13.5-1.5-15Bonds not a debt of the state Sec. 15. The issuance of bonds by the commission payable from revenues from the department under a use and occupancy agreement does not constitute a debt of the state.

As added by P.L.23-1997, SEC.1.

IC 4-13.5-1.5-16Commission's authority to contract Sec. 16. The general assembly:

(1) finds that governmental bodies need to save energy and reduce operating costs; and

(2) authorizes the commission to enter into energy cost savings contracts with qualified providers under this article and IC 4-13.6-8.

As added by P.L.23-1997, SEC.1. Amended by P.L.58-1999, SEC.6 and P.L.172-1999, SEC.6.

IC 4-13.5-2Chapter 2. RepealedRepealed by P.L.27-1985, SEC.15.

IC 4-13.5-3Chapter 3. RepealedRepealed by P.L.27-1985, SEC.15.

IC 4-13.5-4Chapter 4. RepealedRepealed by P.L.189-2018, SEC.13.

IC 4-13.5-5Chapter 5. RepealedRepealed by P.L.235-2005, SEC.212.

IC 4-13.6ARTICLE 13.6. STATE PUBLIC WORKS

Ch. 1.Definitions Ch. 2.General Provisions Ch. 3.Public Works Division Ch. 4.Qualification for State Public Works Projects Ch. 5.Bidding Requirements Ch. 6.Bid Opening and Award of Contracts Ch. 7.Bonding, Escrow, and Retainages Ch. 8.Energy Cost Savings Contracts Ch. 9.Use of Energy Efficient Technology

IC 4-13.6-1Chapter 1. Definitions

4-13.6-1-1Application of definitions 4-13.6-1-2"Board" 4-13.6-1-2.5"Commissioner" 4-13.6-1-3"Contractor" 4-13.6-1-4"Department" 4-13.6-1-5"Director" 4-13.6-1-6"Division" 4-13.6-1-7"Escrowed income" 4-13.6-1-8"Escrowed principal" 4-13.6-1-9"Governmental body" 4-13.6-1-10"Person" 4-13.6-1-11"Professional services" 4-13.6-1-12"Public funds" 4-13.6-1-13"Public works" 4-13.6-1-14"Public works contract" or "contract" 4-13.6-1-15"Responsible contractor" 4-13.6-1-16"Responsive contractor" 4-13.6-1-17"Retainage" 4-13.6-1-18"Subcontractor" 4-13.6-1-19"Substantial completion" 4-13.6-1-20"Supplier"

IC 4-13.6-1-1Application of definitions Sec. 1. The definitions in this chapter apply throughout this article.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-2"Board" Sec. 2. "Board" refers to the certification board established by IC 4-13.6-3-3.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-2.5"Commissioner" Sec. 2.5. "Commissioner" refers to the commissioner of the department.

As added by P.L.14-1986, SEC.7.

IC 4-13.6-1-3"Contractor" Sec. 3. "Contractor" means any person who has entered into or seeks to enter into a public works contract with the division.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-4"Department" Sec. 4. "Department" refers to the Indiana department of administration established by IC 4-13-1-2.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-5"Director" Sec. 5. "Director" means the director of the division.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-6"Division" Sec. 6. "Division" refers to the public works division of the department established by IC 4-13.6-3-2.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-7"Escrowed income" Sec. 7. "Escrowed income" means the value of all property held in an escrow account over the escrowed principal in the account.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-8"Escrowed principal" Sec. 8. "Escrowed principal" means the value of all cash, securities, or other property placed in an escrow account by the division or a contractor as a retainage on a public works contract.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-9"Governmental body" Sec. 9. "Governmental body" means any agency, board, bureau, commission, committee, council, department, office, or other authority of the executive, including the administrative, department of state government.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-10"Person" Sec. 10. "Person" means any association, corporation, limited liability company, fiduciary, individual, joint stock company, joint venture, partnership, sole proprietorship, or other private legal entity.

As added by P.L.24-1985, SEC.7. Amended by P.L.8-1993, SEC.25.

IC 4-13.6-1-11"Professional services" Sec. 11. "Professional services" mean the services of:

(1) a person registered or certified under IC 25-4;

(2) a person licensed under IC 25-31; or

(3) a person who performs services or studies that:

(A) relate to the design or the feasibility of a building, structure, or improvement; and

(B) are recognized in the industry as professional in nature.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-12"Public funds" Sec. 12. "Public funds" means any funds for which a state officer is accountable by virtue of the state officer's public office, whether or not impressed with a public interest.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-13"Public works" Sec. 13. (a) "Public works" means either of the following:

(1) The process of altering, building, constructing, demolishing, improving, or repairing a public building or structure.

(2) A public improvement to real property owned by, or leased in the name of, the state.

(b) The term includes the following:

(1) The preparation of drawings, plans, and specifications for a process or improvement described in subsection (a).

(2) The routine operation, routine repair, or routine maintenance of existing structures, buildings, or real property.

As added by P.L.24-1985, SEC.7. Amended by P.L.49-1997, SEC.18.

IC 4-13.6-1-14"Public works contract" or "contract" Sec. 14. "Public works contract" or "contract" means a contract between the division and a person for the performance of some work or service related to the completion of a public works project for a governmental body. However, the terms "public works contract" or "contract" do not include contracts for professional services, unless specifically provided to the contrary.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-15"Responsible contractor" Sec. 15. "Responsible contractor" means a contractor that:

(1) is capable of performing a public works contract fully;

(2) has the integrity and reliability that will insure good faith performance; and

(3) is qualified under IC 4-13.6-4, if applicable.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-16"Responsive contractor" Sec. 16. "Responsive contractor" means a contractor that has submitted a bid or a quotation in conformity with instructions, contract documents, terms, and other conditions for a contract.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-17"Retainage" Sec. 17. "Retainage" means any amount to be withheld from a payment to a contractor or subcontractor under the terms of a contract until the occurrence of a specified event.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-18"Subcontractor" Sec. 18. "Subcontractor" means any person entering into a contract with a contractor to furnish labor or labor and materials used in the actual construction of a public works project. For purposes of this section, labor used in delivery and unloading of materials at a project site is not considered to be labor used in the actual construction of a public works project.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-19"Substantial completion" Sec. 19. "Substantial completion" means the condition of a public work when it is sufficiently completed, in accordance with the contract documents as modified by any completed change orders agreed to by the parties, so that the governmental body for which the public work is intended can occupy or take possession of the public work and use it as it is intended to be used.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-1-20"Supplier" Sec. 20. "Supplier" means any person supplying materials, but no onsite labor, to a contractor or to a subcontractor.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-2Chapter 2. General Provisions

4-13.6-2-1Purposes and policies of article 4-13.6-2-2Application of article 4-13.6-2-3Application of article to public works projects; exceptions 4-13.6-2-4Compliance by division with certain statutes 4-13.6-2-5Certain statutes not applicable 4-13.6-2-6Good faith 4-13.6-2-7Grants, gifts, bequests, or cooperative agreements 4-13.6-2-8Retention of written determinations 4-13.6-2-9Public records; inspection 4-13.6-2-10Electronic bids or offers 4-13.6-2-11Designation of public works project as small business set-aside; rules 4-13.6-2-12Annual instruction to certain businesses and business enterprises

IC 4-13.6-2-1Purposes and policies of article Sec. 1. This article shall be construed and applied to promote its underlying purposes and policies, which are to:

(1) simplify, clarify, and modernize the law governing public works and professional service contracts;

(2) maintain public confidence in the procedures surrounding the awarding and administration of public works and professional service contracts;

(3) ensure fair and equitable treatment of all persons who deal with the public works system covered by this article;

(4) provide increased economy in public works activities covered by this article and maximize the purchasing value of the public funds of this state;

(5) foster effective broad based competition within the free enterprise system; and

(6) provide safeguards for the maintenance of a public works system of quality and integrity.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-2-2Application of article Sec. 2. (a) This article applies only to public works contracts solicited after June 30, 1985.

(b) This article applies to work or improvements to be performed on real property that is being or that will be leased by the state from another person if the lease gives the state an option to buy the real property.

(c) This article does not apply to work or improvements made to real property that is being or will be leased by the state from another person where the state has no interest in the real property after expiration of the lease. However, a lease between the lessor and the state may provide that any of the provisions of this article will apply to any work or improvements to be made in the leased real property.

(d) This article applies to any public works project performed on real property that is not owned by the state if:

(1) federal or state law or court order requires that a governmental body perform the work on that real property; and

(2) the commissioner requires compliance with this article.

As added by P.L.24-1985, SEC.7. Amended by P.L.33-1995, SEC.8; P.L.49-1997, SEC.19.

IC 4-13.6-2-3Application of article to public works projects; exceptions Sec. 3. (a) This article applies to every expenditure of public funds, regardless of their source, including federal assistance money, by any governmental body for any public works project.

(b) This article does not apply to the following:

(1) The Indiana commission for higher education.

(2) State educational institutions.

(3) Military officers and military and armory boards of the state.

(4) The state fair commission.

(5) Any entity established by the general assembly as a body corporate and politic having authority and power to issue bonds to be secured and repaid solely by revenues pledged for that purpose. However, such an entity shall comply with this article if the law creating the entity requires it to do so.

(6) The Indiana department of transportation, except to the extent that the Indiana department of transportation uses the services provided by the department under this article.

(7) The Indiana state museum and historic sites corporation.

As added by P.L.24-1985, SEC.7. Amended by P.L.18-1990, SEC.6; P.L.20-1990, SEC.4; P.L.2-2007, SEC.41; P.L.166-2013, SEC.1.

IC 4-13.6-2-4Compliance by division with certain statutes Sec. 4. The division shall comply with this article and the following statutes in the administration of public works contracts:

(1) IC 5-16-3.

(2) IC 5-16-6.

(3) IC 5-16-8.

(4) IC 5-16-9.

(5) IC 5-16-13.

(6) IC 5-16-14.

As added by P.L.24-1985, SEC.7. Amended by P.L.26-1989, SEC.9; P.L.252-2015, SEC.2.

IC 4-13.6-2-5Certain statutes not applicable Sec. 5. The following statutes do not apply to public works, public works contracts, or professional service contracts covered under this article:

(1) IC 5-16-1.

(2) IC 5-16-2.

(3) IC 5-16-5.

(4) IC 5-16-5.5.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-2-6Good faith Sec. 6. All parties involved in the negotiation, performance, or administration of contracts covered by this article shall act in good faith.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-2-7Grants, gifts, bequests, or cooperative agreements Sec. 7. Notwithstanding this article, the department shall comply with the terms and conditions of any grant, gift, bequest, or cooperative agreement involving a governmental body if noncompliance with those terms and conditions would invalidate the grant, gift, bequest, or cooperative agreement.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-2-8Retention of written determinations Sec. 8. The division shall retain written determinations required by this article in the appropriate official contract file of the division.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-2-9Public records; inspection Sec. 9. (a) As used in this section, "contract" includes a contract for professional services.

(b) Except as provided in subsection (c) or by another law, records of the division are public records subject to public inspection under IC 5-14-3.

(c) An officer or employee of the state may not:

(1) convey or permit public access to any information concerning a bid, a quotation, or other response received to a solicitation for the award of a contract other than the information made available at a public opening of bids, quotations, or other responses; or

(2) permit inspection or copying under IC 5-14-3 of bid documents, quotation documents, or documents relating to other responses received to a solicitation for the award of a contract;

until a contract has been awarded or the solicitation has been canceled. However, after a public opening of bids, quotations, or other responses received to a solicitation for the award of a contract, an officer or employee may provide information that a person could have learned by attending the opening.

As added by P.L.24-1985, SEC.7. Amended by P.L.18-1991, SEC.14.

IC 4-13.6-2-10Electronic bids or offers Sec. 10. The department may receive electronic bids or offers if both of the following apply:

(1) The solicitation indicates the procedure for transmitting the electronic bid or offer to the department.

(2) The department receives the bid or offer on a facsimile (fax) machine or system with a security feature that protects the content of an electronic bid or offer with the same degree of protection as the content of a bid or an offer that is not transmitted by a fax machine.

As added by P.L.33-1995, SEC.7.

IC 4-13.6-2-11Designation of public works project as small business set-aside; rules Sec. 11. (a) The division may designate a public works project as a small business set-aside under rules adopted by the department under IC 4-22-2.

(b) The following apply to rules adopted by the department governing small business set-asides for public works projects:

(1) The rules are subject to the criteria for determining whether a business is a small business under IC 5-22-14-3.

(2) The rules must establish procedures for administering a small business set-aside program for public works projects that are substantially the same as the procedures described in IC 5-22-14.

As added by P.L.49-1997, SEC.20.

IC 4-13.6-2-12Annual instruction to certain businesses and business enterprises Sec. 12. The department shall offer instruction at least annually to:

(1) small businesses (as defined in IC 5-22-14-1);

(2) minority business enterprises (as defined in IC 4-13-16.5-1);

(3) women's business enterprises (as defined in IC 4-13-16.5-1); and

(4) veteran owned small businesses (as defined in IC 4-13-16.5-1);

with regard to bonding requirements and working with the surety industry to secure bonding for public works projects.

As added by P.L.133-2007, SEC.1. Amended by P.L.15-2020, SEC.8; P.L.23-2026, SEC.13.

IC 4-13.6-3Chapter 3. Public Works Division

4-13.6-3-1Duties of department; assignment of public works project 4-13.6-3-2Establishment of division; powers and duties; determination of project value 4-13.6-3-3Certification board 4-13.6-3-4Increased compensation for early performance of contracts; deductions for late completion of contracts; notice

IC 4-13.6-3-1Duties of department; assignment of public works project Sec. 1. (a) Except as provided in IC 4-13.6-4, the department shall:

(1) adopt rules under IC 4-22-2 necessary to carry out this article;

(2) consider and decide matters of policy under this article; and

(3) enforce this article and the rules adopted under it.

However, the department may not impair rights or obligations of the state or of a contractor under a contract in existence on the effective date of a rule.

(b) The commissioner may assign a public works project or a designated part of a public works project normally under the jurisdiction of the division to another division of the department. However, the commissioner may make this assignment only if the commissioner makes a written determination that:

(1) the estimated cost of the entire project is less than one hundred thousand dollars ($100,000);

(2) in the commissioner's judgment, it is in the interest of efficiency and economy to make the assignment; and

(3) in the commissioner's judgment, the other division of the department to which the assignment is made and the laws that govern that division make that division better suited to accomplish the assignment.

When executing the project, the other division of the department to which the project is assigned must follow all laws governing that division in accomplishing the assignment.

(c) Notwithstanding subsection (b), the commissioner may generally assign public works projects, regardless of the cost, when the projects are for the routine operation, routine repair, or routine maintenance of existing structures, buildings, or real property to any division of the department that the commissioner determines is appropriate without making a written determination under subsection (b).

As added by P.L.24-1985, SEC.7. Amended by P.L.5-1993, SEC.9.

IC 4-13.6-3-2Establishment of division; powers and duties; determination of project value Sec. 2. (a) The public works division is established within the department. Subject to this article, the division shall:

(1) prepare or supervise preparation of contract documents for public works projects;

(2) approve contract documents for public works projects;

(3) advertise for bids for public works contracts;

(4) recommend to the commissioner award of public works contracts;

(5) supervise and inspect all work relating to public works projects;

(6) recommend to the commissioner approval of any necessary lawful changes in contract documents relating to a public works contract that has been awarded;

(7) approve or reject estimates for payment;

(8) accept or reject a public works project; and

(9) administer this article.

(b) Except as provided in IC 4-13.6-5-4(d) and subject to IC 4-13.6-2-6, whenever in this article a duty is specified or authority is granted that relates to the estimated dollar value of a public works project, the director shall make the determination of the value of the project. Such a determination of the director is final and conclusive and is the amount against which the existence of the duty or the authority shall be determined, even if it is later found that the determination of the director was erroneous.

(c) The division may delegate any of its authority to a governmental body.

As added by P.L.24-1985, SEC.7. Amended by P.L.172-2011, SEC.3.

IC 4-13.6-3-3Certification board Sec. 3. (a) There is established a certification board. The following persons shall serve on the certification board:

(1) The director of engineering of the department of natural resources.

(2) The director.

(3) The state building commissioner of the department of homeland security.

(b) The board shall administer IC 4-13.6-4.

As added by P.L.24-1985, SEC.7. Amended by P.L.1-2006, SEC.65; P.L.101-2006, SEC.1; P.L.160-2006, SEC.3; P.L.218-2014, SEC.1.

IC 4-13.6-3-4Increased compensation for early performance of contracts; deductions for late completion of contracts; notice Sec. 4. (a) The commissioner may specify in a contract that early performance of the contract will result in increased compensation at either:

(1) a percentage of the contract amount; or

(2) a specific dollar amount;

determined by the commissioner.

(b) The commissioner may specify in a contract that completion of the contract after the termination date of the contract will result in a deduction from the compensation in the contract at either:

(1) a percentage of the contract amount; or

(2) a specific dollar amount;

determined by the commissioner.

(c) Notice of inclusion of contract provisions permitted under this section in a contract must be included in the solicitation.

As added by P.L.5-1993, SEC.10.

IC 4-13.6-4Chapter 4. Qualification for State Public Works Projects

4-13.6-4-1Application of chapter 4-13.6-4-2Applications for qualification; forms; confidentiality 4-13.6-4-2.5Applicability of qualification requirement under IC 5-16-13; exemption for local unit projects 4-13.6-4-3Examination of applications 4-13.6-4-4Certificates of qualification 4-13.6-4-4.5Public availability of certificates of qualification 4-13.6-4-5Applications for qualification; contents 4-13.6-4-6Certificates of qualification; standards for issuance 4-13.6-4-7Foreign corporations; applications for qualifications 4-13.6-4-8Residency of applicants 4-13.6-4-9Rules 4-13.6-4-10Subcontracts; breach of contract 4-13.6-4-11Necessity of qualifications 4-13.6-4-12False statements by applicant; institution of proceedings 4-13.6-4-13Hearings; judicial review 4-13.6-4-14Violations; reports of convictions; disqualification of convicted persons

IC 4-13.6-4-1Application of chapter Sec. 1. This chapter governs the qualification and classification of contractors and of persons desiring to perform professional services relating to a public works project.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-4-2Applications for qualification; forms; confidentiality Sec. 2. (a) All persons desiring to perform professional services relating to a public works project must apply to the board for qualification.

(b) A contractor is not required to apply to the board for qualification before submitting a bid on a public works contract unless the estimated cost of the project is one hundred fifty thousand dollars ($150,000) or more.

(c) An applicant for qualification under this chapter shall use the forms prescribed by the board. The board shall provide separate and specific forms for contractors and for persons desiring to perform professional services.

(d) An applicant must verify the applicant's application.

(e) Notwithstanding IC 5-14-3-4(a)(5), a financial statement submitted to the board under this chapter is considered confidential financial information for purposes of IC 5-14-3.

As added by P.L.24-1985, SEC.7. Amended by P.L.29-1993, SEC.4; P.L.12-2002, SEC.1.

IC 4-13.6-4-2.5Applicability of qualification requirement under IC 5-16-13; exemption for local unit projects Sec. 2.5. (a) The definitions in IC 5-16-13 apply to this section.

(b) For purposes of IC 5-16-13-10(c) and this section, the following apply:

(1) A contractor must be qualified under this chapter before doing any work on a public works project that is a public work:

(A) as defined by IC 4-13.6-1-13; or

(B) as defined by IC 36-1-12-2, excluding the construction, alteration, or repair of a highway, street, or alley.

(2) A supplier (as defined by IC 4-13.6-1-20) is not required to be qualified under this chapter before doing any work on a public works project.

(c) Notwithstanding the applicability date specified in IC 5-16-13-10(c) and subject to subsection (d), the requirement that a contractor must be qualified under this chapter before doing any work on a public works project applies to a public works contract awarded after December 31, 2016.

(d) This subsection applies to a public works project awarded after December 31, 2016, by a local unit. A contractor in any contractor tier is not required to be qualified under this chapter before doing any work on a public works project awarded by a local unit whenever:

(1) the total amount of the contract awarded to the contractor for work on the public works project is less than three hundred thousand dollars ($300,000); and

(2) the local unit complies with IC 36-1-12 in awarding the contract for the public works project.

As added by P.L.144-2016, SEC.1.

IC 4-13.6-4-3Examination of applications Sec. 3. The board shall examine an application for qualification within forty-five (45) days after receiving it. In making its examination, the board shall make any necessary investigations and determine whether the applicant is competent and responsible and possesses the financial resources and experience necessary to comply with this chapter and the board's rules.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-4-4Certificates of qualification Sec. 4. (a) If, after its examination, the board finds that an applicant possesses the qualifications prescribed by this chapter and by its rules, the board shall issue the applicant a certificate of qualification. A certificate of qualification issued under this chapter is valid for a period of twenty-seven (27) months from the date of its issuance, unless revoked by the board for cause.

(b) Except for restrictions as to the amount or class of work or services that the board may place in the certificate, the certificate of qualification authorizes a contractor to bid on all proposed public works contracts and authorizes a person offering to perform professional services to perform those services.

(c) A person that holds a certificate of qualification shall notify the board of any material changes in information in the application submitted to the board.

(d) The board may revoke a certificate of qualification after it notifies the holder of the certificate and provides the holder with an opportunity to be heard on the proposed revocation. The notice must be in writing and must state the grounds of the proposed revocation.

As added by P.L.24-1985, SEC.7. Amended by P.L.58-1999, SEC.7 and P.L.172-1999, SEC.7.

IC 4-13.6-4-4.5Public availability of certificates of qualification Sec. 4.5. The board shall make available for public inspection during regular office hours and on the Internet a list of the contractors holding a valid certificate of qualification issued by the board under this chapter.

As added by P.L.144-2016, SEC.2.

IC 4-13.6-4-5Applications for qualification; contents Sec. 5. (a) The board shall require an application for qualification submitted by a person seeking to perform professional services to include the following information:

(1) Name of the firm.

(2) Principal members of the firm.

(3) Registrations of the principal members of the firm.

(4) Experience of the principal members of the firm.

(5) Office or position occupied by each principal member of the firm.

(6) Professional affiliations of each principal member of the firm.

(7) History of the firm.

(8) Statistics on staff of the firm.

(9) Experience of the firm classified as to types of work and providing the names of and status of work, both public and private.

(10) The geographical location of all offices of the firm.

(11) Financial and general references.

(12) If the person is a trust (as defined in IC 30-4-1-1(a)), the name of each:

(A) beneficiary of the trust; and

(B) settlor empowered to revoke or modify the trust.

(b) In addition to the information required by subsection (a), each applicant must supply a list of at least five (5) specific projects that the applicant has completed within the past five (5) years, together with the name and address of the person with whom the applicant contracted for the work.

(c) The board may require an applicant to submit any other information that it requires to make a determination regarding the application.

As added by P.L.24-1985, SEC.7. Amended by P.L.336-1989(ss), SEC.8.

IC 4-13.6-4-6Certificates of qualification; standards for issuance Sec. 6. (a) The board may issue an applicant a certificate of qualification as a contractor only if:

(1) the applicant's stated bonding limit, as evidenced by a verified statement from a bonding company licensed to do business in Indiana, is one hundred fifty thousand dollars ($150,000) or more; and

(2) the applicant's experience, past performance, and reputation are such that, in the judgment of the board, the contractor will satisfactorily execute and perform contracts that may be awarded under this article.

(b) An application for qualification as a contractor must expressly authorize the board to obtain all information that it considers pertinent with respect to the reputation for honesty and fair dealing of the applicant and to obtain this information from surety companies, dealers in material, equipment, and supplies, or other persons having business transactions with the applicant. The application must also expressly authorize all financial institutions or other persons to furnish this information, as requested by the board.

(c) The board may require a qualified contractor to provide information relating to its qualifications at the intervals set by the board. However, the board may not require this information more often than quarterly or with the submission of a public works contract bid.

As added by P.L.24-1985, SEC.7. Amended by P.L.22-1997, SEC.2.

IC 4-13.6-4-7Foreign corporations; applications for qualifications Sec. 7. If an applicant for qualification is a foreign corporation, the applicant's application must be accompanied by a certificate of the secretary of state that the applicant is authorized to do business in Indiana or a statement from the secretary of state that the applicant is not required to register under relevant Indiana corporation laws.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-4-8Residency of applicants Sec. 8. This chapter shall be administered without reference to the residence of an applicant. This chapter and the rules of the board adopted under section 9 of this chapter apply equally to residents and nonresidents of the state of Indiana.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-4-9Rules Sec. 9. The board may adopt rules under IC 4-22-2 that the board considers proper for the purpose of carrying out this chapter and insuring to the state of Indiana and to the public the award of all public works and professional service contracts to competent and responsible persons. These rules may cover the requirements of the board with respect to past record, experience, equipment, personnel of the organization, ability to perform, and other matters that the board considers necessary to enable it to pass upon the qualifications of applicants.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-4-10Subcontracts; breach of contract Sec. 10. (a) A contractor having a contract with the division for a public works project may enter into a subcontract with a value of one hundred fifty thousand dollars ($150,000) or more, involving the performance of any part of the public work upon which the contractor may be engaged only if the subcontractor has been properly qualified under the terms of this chapter for the work subcontracted.

(b) A contractor that enters into a public works contract with an estimated cost of one hundred fifty thousand dollars ($150,000) or more must complete at least fifteen percent (15%) of the work (measured in dollars of the total contract price) with its own forces. The director may determine whether a contractor has completed at least fifteen percent (15%) of the work with its own forces, and this determination is final and conclusive.

(c) The director may find a contractor violating this section to be in breach of the contract and may employ any legal remedies or administrative remedies that the department may prescribe by rule or in the contract documents. The division may develop contract provisions that assure compliance by contractors with this section and provide for remedies if a contractor breaches these provisions.

As added by P.L.24-1985, SEC.7. Amended by P.L.58-1999, SEC.8; P.L.252-2015, SEC.3.

IC 4-13.6-4-11Necessity of qualifications Sec. 11. (a) The director may not recommend to the commissioner the awarding of a contract to perform professional services to any person who is not qualified under this chapter.

(b) The division may not accept a bid on a public works project with an estimated cost of one hundred fifty thousand dollars ($150,000) or more from a contractor who is not qualified under this chapter.

As added by P.L.24-1985, SEC.7. Amended by P.L.12-2002, SEC.2.

IC 4-13.6-4-12False statements by applicant; institution of proceedings Sec. 12. If an applicant knowingly makes a false statement in an application for qualification or in any other written instrument filed with the board under this chapter or under rules adopted under this chapter, the division may institute appropriate legal proceedings and administrative action against the applicant.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-4-13Hearings; judicial review Sec. 13. (a) Any person whose application is denied or is not acted upon within the time specified under section 3 of this chapter may request a hearing before the board under IC 4-21.5-3.

(b) The board shall conduct proceedings for the revocation of a certificate under IC 4-21.5-3.

(c) Judicial review of an adverse decision in any hearing held under this chapter shall be in accordance with IC 4-21.5-5.

As added by P.L.24-1985, SEC.7. Amended by P.L.7-1987, SEC.4; P.L.1-1999, SEC.3.

IC 4-13.6-4-14Violations; reports of convictions; disqualification of convicted persons Sec. 14. (a) A person who knowingly violates section 10 or section 12 of this chapter commits a Class C misdemeanor.

(b) The trial court shall report all convictions under this section to the division, and the board shall disqualify the convicted person from performing any public works contracts under this article for a period of two (2) years from the date of conviction.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-5Chapter 5. Bidding Requirements

4-13.6-5-0.1Application of certain amendments to chapter 4-13.6-5-1Method of awarding contracts; approval of contract documents 4-13.6-5-2Dollar thresholds for bidding; bidding procedure; records 4-13.6-5-2.5Application of section; sealed bid or quotation submitted by trust 4-13.6-5-3Projects costing less than $150,000; quotations from contractors; awards 4-13.6-5-4Performance of public works by division or certain state departments 4-13.6-5-5Emergency conditions; quotations from contractors; awards 4-13.6-5-6Maintenance services contracts 4-13.6-5-7Land acquisition; professional services 4-13.6-5-8Solicitation of sealed bids; public notice 4-13.6-5-9Copies of bids or quotations; files; public records 4-13.6-5-10Commencement of warranty period 4-13.6-5-10.5Plumbing installations; proof of licensure 4-13.6-5-11Void contracts 4-13.6-5-12Trench safety systems; cost recovery

IC 4-13.6-5-0.1Application of certain amendments to chapter Sec. 0.1. The addition of section 10.5 of this chapter by P.L.20-1991 applies to public works contracts for which notices calling for sealed proposals for the work are published after June 30, 1991.

As added by P.L.220-2011, SEC.36.

IC 4-13.6-5-1Method of awarding contracts; approval of contract documents Sec. 1. (a) Public works contracts must be awarded under section 2 of this chapter unless another method is authorized under this chapter.

(b) A duly licensed architect or engineer must approve the contract documents for a public works project.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-5-2Dollar thresholds for bidding; bidding procedure; records Sec. 2. (a) Except as provided by this chapter and IC 16-33-4-10, if the estimated cost of a public works project is at least one hundred fifty thousand dollars ($150,000), the division shall award a contract for the project based on competitive bids.

(b) If the estimated cost of a public works project is at least one hundred fifty thousand dollars ($150,000), the division shall develop contract documents for a public works contract and keep the contract documents on file in its offices so that they may be inspected by contractors and members of the public.

(c) The division shall advertise for bids under section 8 of this chapter. The director shall award a contract under IC 4-13.6-6.

(d) A contractor shall submit under oath a financial statement as a part of the bid. The director may waive filing of the financial statement.

(e) After bids are opened but before a contract is awarded, the director may require a contractor to submit a statement of the contractor's experience, a proposed plan of performing the work, and a listing of the equipment that is available to the contractor for performance of the work.

(f) The statements required by this section shall be submitted on forms approved by the state board of accounts. The forms shall be based, so far as applicable, on standard questionnaires and financial statements for contractors used in investigating the qualifications of contractors on public construction work.

(g) The division shall reject the bid of a contractor if:

(1) the estimated cost of the public works project is one hundred fifty thousand dollars ($150,000) or more and the contractor is not qualified under IC 4-13.6-4;

(2) the estimated cost of the public works project is less than one hundred fifty thousand dollars ($150,000) and the director makes a written determination, based upon information provided under subsections (d) and (e), that the contractor is not qualified to perform the public works contract;

(3) the contractor has failed to perform a previous contract with the state satisfactorily and has submitted the bid during a period of suspension imposed by the director (the failure of the contractor to perform a contract satisfactorily must be based upon a written determination by the director);

(4) the contractor has not complied with a rule adopted under this article and the rule specifies that failure to comply with it is a ground for rejection of a bid; or

(5) the contractor has not complied with any requirement under section 2.5 of this chapter.

(h) The division shall keep a record of all bids. The state board of accounts shall approve the form of this record, and the record must include at least the following information:

(1) The name of each contractor.

(2) The amount bid by each contractor.

(3) The name of the contractor making the lowest bid.

(4) The name of the contractor to whom the contract was awarded.

(5) The reason the contract was awarded to a contractor other than the lowest bidder, if applicable.

(6) Purchase order numbers.

As added by P.L.24-1985, SEC.7. Amended by P.L.14-1986, SEC.8; P.L.26-1989, SEC.10; P.L.336-1989(ss), SEC.9; P.L.2-1992, SEC.34; P.L.2-1993, SEC.35; P.L.12-2002, SEC.3; P.L.172-2011, SEC.4; P.L.23-2026, SEC.14.

IC 4-13.6-5-2.5Application of section; sealed bid or quotation submitted by trust Sec. 2.5. (a) This section applies whenever a contract is awarded by competitive sealed bidding or acceptance of quotations.

(b) A bid or quotation submitted by a trust (as defined in IC 30-4-1-1(a)) must identify each:

(1) beneficiary of the trust; and

(2) settlor empowered to revoke or modify the trust.

As added by P.L.336-1989(ss), SEC.10.

IC 4-13.6-5-3Projects costing less than $150,000; quotations from contractors; awards Sec. 3. (a) If the estimated cost of a public works project is less than one hundred fifty thousand dollars ($150,000), the division may award a public works contract either under section 2 of this chapter or under this section, at the discretion of the director.

(b) If the director awards a contract under this section, the division shall invite quotations from at least three (3) contractors known to the division to deal in the work required to be done. However, if fewer than three (3) contractors are known to the division to be qualified to perform the work, the division shall invite quotations from as many contractors as are known to be qualified to perform the work. Failure to receive three (3) quotations shall not prevent an award from being made.

(c) The division may authorize the governmental body for which the public work is to be performed to invite quotations, but award of a contract based upon those quotations is the responsibility of the division.

(d) Quotations given by a contractor under this section must be in writing and sealed in an envelope, shall be considered firm, and may be the basis upon which the division awards a public works contract.

(e) The division shall award a contract to the lowest responsible and responsive contractor and in accordance with any requirement imposed under section 2.5 of this chapter.

As added by P.L.24-1985, SEC.7. Amended by P.L.26-1989, SEC.11; P.L.336-1989(ss), SEC.11; P.L.12-2002, SEC.4; P.L.172-2011, SEC.5.

IC 4-13.6-5-4Performance of public works by division or certain state departments Sec. 4. (a) If the estimated cost of a public works project is less than three hundred thousand dollars ($300,000), the division may perform the public work without awarding a public works contract under section 2 of this chapter. In performing the public work, the division may authorize use of equipment owned, rented, or leased by the state, may authorize purchase of materials in the manner provided by law, and may authorize performance of the public work using employees of the state.

(b) The workforce of a state agency may perform a public work described in subsection (a) only if:

(1) the workforce, through demonstrated skills, training, or expertise, is capable of performing the public work; and

(2) for a public works project under subsection (a) whose cost is estimated to be more than one hundred thousand dollars ($100,000), the agency:

(A) publishes a notice under IC 5-3-1 that:

(i) describes the public work that the agency intends to perform with its own workforce; and

(ii) sets forth the projected cost of each component of the public work as described in subsection (a); and

(B) determines at a public meeting that it is in the public interest to perform the public work with the agency's own workforce.

A public works project performed by an agency's own workforce must be inspected and accepted as complete in the same manner as a public works project performed under a contract awarded after receiving bids.

(c) If a public works project involves a structure, an improvement, or a facility under the control of an agency, the agency may not artificially divide the project to bring any part of the project under this section.

(d) If a public works project involves a structure, improvement, or facility under the control of the department of natural resources, the department of natural resources may purchase materials for the project in the manner provided by law and without a contract being awarded, and may use its employees to perform the labor and supervision, if:

(1) the department of natural resources uses equipment owned or leased by it; and

(2) the division of engineering of the department of natural resources estimates the cost of the public works project will be not more than six hundred thousand dollars ($600,000).

(e) If a public works project involves a structure, improvement, or facility under the control of the department of correction, the department of correction may purchase materials for the project in the manner provided by law and use inmates in the custody of the department of correction to perform the labor and use its own employees for supervisory purposes, without awarding a contract, if:

(1) the department of correction uses equipment owned or leased by it; and

(2) the estimated cost of the public works project using employee or inmate labor is less than the greater of:

(A) fifty thousand dollars ($50,000); or

(B) the project cost limitation set by IC 4-13-2-11.1.

All public works projects covered by this subsection must comply with the remaining provisions of this article, and all plans and specifications for the public works project must be approved by a licensed architect or engineer.

As added by P.L.24-1985, SEC.7. Amended by P.L.12-2002, SEC.5; P.L.34-2005, SEC.1; P.L.172-2011, SEC.6; P.L.252-2015, SEC.4; P.L.230-2025, SEC.2.

IC 4-13.6-5-5Emergency conditions; quotations from contractors; awards Sec. 5. (a) When the commissioner makes a written determination that an emergency condition exists due to fire, flood, windstorm, casualty, or other condition (including mechanical failure of any part of a building or structure), and the emergency condition endangers the health, safety, or welfare of the public or necessary governmental operations, the division may act to repair any damage caused by the emergency condition without awarding a public works contract under section 2 of this chapter.

(b) In the case of an emergency described in subsection (a), the division shall invite quotations from at least three (3) contractors known to the division to deal in the work required to be done if the division can do so without jeopardizing successful repair. However, if fewer than three (3) contractors are known to the division to be qualified to perform the work, the division shall invite quotations from as many contractors as are known to be qualified to perform the work. Failure to receive three (3) quotations shall not prevent an award from being made.

(c) The division shall keep a copy of the commissioner's determination and the names of the contractors from whom quotations were invited in the division's files.

(d) The division shall award a contract to the lowest responsible and responsive contractor. However, the division may award a contract to a contractor not qualified under IC 4-13.6-4, if necessary to remedy the emergency condition.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-5-6Maintenance services contracts Sec. 6. The division may award a contract for maintenance services for a system that is part of a public building, improvement, or other structure without inviting bids under section 2 of this chapter. The division may award a contract for those services to the manufacturer of the system or to a person recommended by the manufacturer of the system. A contract may be awarded under this section only upon a written determination by the commissioner that:

(1) the manufacturer of the system, or the person recommended by the manufacturer, has knowledge of the system unlikely to be shared by other persons potentially able to bid to provide the maintenance services; and

(2) the savings to the state that might be obtained by inviting bids for the maintenance services do not outweigh the benefits that the state would gain by awarding a contract to the manufacturer of the system or to a person recommended by the manufacturer of the system.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-5-7Land acquisition; professional services Sec. 7. (a) Competitive bids are not required for the acquisition of land or for professional services relating to public works projects. In awarding contracts for professional services relating to public works projects, the director shall submit a recommendation to the commissioner, who shall award a contract.

(b) In making a recommendation to the commissioner, the director shall consider only the competence and the qualifications of the persons offering to perform the professional services in relation to the type of services to be performed. The department shall negotiate compensation for performance of the professional services that the commissioner determines is reasonable.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-5-8Solicitation of sealed bids; public notice Sec. 8. (a) This section applies only to public works contracts bid under section 2 of this chapter.

(b) The division shall solicit sealed bids by public notice inserted once each week for two (2) successive weeks before the final date of submitting bids in:

(1) one (1) newspaper of general circulation in Marion County, Indiana; and

(2) if any part of the project is located in an area outside Marion County, Indiana, one (1) newspaper of general circulation in that area.

The commissioner shall designate the newspapers for these publications. The commissioner may designate different newspapers according to the nature of the project and may direct that additional notices be published.

(c) The division shall also solicit sealed bids for public works projects by providing electronic access to notices through the computer gateway administered by the office of technology established by IC 4-13.1-2-1 at least seven (7) days before the final date for submitting bids for the public works project.

As added by P.L.24-1985, SEC.7. Amended by P.L.26-1989, SEC.12; P.L.251-1999, SEC.2; P.L.177-2005, SEC.10; P.L.134-2012, SEC.3.

IC 4-13.6-5-9Copies of bids or quotations; files; public records Sec. 9. (a) In order to preserve the integrity of bids or quotations, the division shall make a copy of each bid or quotation as soon as possible after the bids or quotations are opened and before they may be inspected and copied by the public under IC 5-14-3. In making these copies, the division is required to copy only those portions of the bids or quotations which, if altered, would affect the integrity of the bid or quotation. The division may make these copies by means of microfilm or by any other means that the commissioner may specify.

(b) The division shall keep in a file all original bids or quotations and all documents pertaining to the award of a public works contract or a professional services contract.

(c) The copies required by subsection (a) and the files required by subsection (b) are public records under IC 5-14-3. The division shall retain these copies and files according to retention schedules established for these records under IC 5-15-5.1.

(d) This section is subject to IC 4-13.6-2-9.

As added by P.L.24-1985, SEC.7. Amended by P.L.18-1991, SEC.15.

IC 4-13.6-5-10Commencement of warranty period Sec. 10. Each public works contract must require that all warranty periods applying to work performed under the contract commence no later than the date that work under the contract is substantially completed.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-5-10.5Plumbing installations; proof of licensure Sec. 10.5. A person who submits a bid for a public works contract under this chapter that involves the installation of plumbing must submit evidence that the person is a licensed plumbing contractor under IC 25-28.5-1.

As added by P.L.20-1991, SEC.1.

IC 4-13.6-5-11Void contracts Sec. 11. All public works contracts not let in conformity with this chapter are void.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-5-12Trench safety systems; cost recovery Sec. 12. (a) This section applies to a public works project that may require creation of a trench of at least five (5) feet in depth.

(b) IOSHA regulations 29 C.F.R. 1926, Subpart P, for trench safety systems shall be incorporated into the contract documents for a public works project.

(c) The contract documents for a public works project shall provide that the cost for trench safety systems shall be paid for:

(1) as a separate pay item; or

(2) in the pay item of the principal work with which the safety systems are associated.

As added by P.L.26-1989, SEC.14.

IC 4-13.6-6Chapter 6. Bid Opening and Award of Contracts

4-13.6-6-1Sealed bids; opening procedure; time to submit bids 4-13.6-6-2Award of contracts 4-13.6-6-2.5Preference rules 4-13.6-6-2.7Repealed 4-13.6-6-3Rejection of all bids 4-13.6-6-4Notice to proceed; extensions of time; notice of withdrawal of bid and rejection of contract 4-13.6-6-5Application of IC 5-22-16.5 to award of contracts under chapter

IC 4-13.6-6-1Sealed bids; opening procedure; time to submit bids Sec. 1. (a) All bids shall be sealed in an envelope when submitted to the division.

(b) The division shall open bids in public and read them aloud at the time and place designated in the instructions. Contractors and all other members of the public are entitled to attend bid openings. Before contractors and other members of the public are permitted to inspect and copy bids, the division shall copy the bids as required by IC 4-13.6-5-9.

(c) The division may not require any contractor to submit its bid at any time earlier than the time specified in the instructions for opening of bids.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-6-2Award of contracts Sec. 2. Except as provided in rules adopted under section 2.5 of this chapter, the division shall award a contract to the lowest responsible and responsive contractor.

As added by P.L.24-1985, SEC.7. Amended by P.L.5-1993, SEC.11; P.L.35-1995, SEC.2; P.L.66-2004, SEC.1; P.L.1-2010, SEC.7.

IC 4-13.6-6-2.5Preference rules Sec. 2.5. (a) As used in this section, "out-of-state business" refers to a business that is not an Indiana business.

(b) The department may adopt rules under IC 4-22-2 to give a preference to an Indiana business that submits a bid under this article if all of the following apply:

(1) An out-of-state business submits a bid.

(2) The out-of-state business is a business from a state that gives public works preferences unfavorable to Indiana businesses.

(c) Rules adopted under subsection (b) must establish criteria for determining the following:

(1) Whether a bidder qualifies as an Indiana business under the rules.

(2) When another state's preference is unfavorable to Indiana businesses.

(3) The method by which the preference for Indiana businesses is to be computed.

(d) Rules adopted under subsection (b) may not give a preference to an Indiana business that is more favorable to the Indiana business than the other state's preference is to the other state's businesses.

As added by P.L.35-1995, SEC.3.

IC 4-13.6-6-2.7RepealedAs added by P.L.66-2004, SEC.2. Amended by P.L.4-2005, SEC.18. Repealed by P.L.1-2010, SEC.156.

IC 4-13.6-6-3Rejection of all bids Sec. 3. The division may, in the reasonable exercise of discretion, reject all bids submitted.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-6-4Notice to proceed; extensions of time; notice of withdrawal of bid and rejection of contract Sec. 4. (a) Within sixty (60) days from the date on which bids are opened, the division shall award a contract and shall provide the successful contractor with written notice to proceed.

(b) If the division fails to award and execute a contract and to issue notice to proceed within sixty (60) days that bids for the contract are opened, the successful contractor may grant one (1) or more extensions of time to the division to award a contract, to execute the contract, and to give notice to proceed. The date that an extension of time granted under this subsection expires must be a date upon which the division and the successful contractor agree.

(c) After the sixty (60) day period set by subsection (a) and all extension periods set under subsection (b) have expired, a successful contractor may elect to withdraw its bid and reject the contract only by delivering a written notice to the division that grants the division at least fifteen (15) additional days to award a contract to the successful contractor.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-6-5Application of IC 5-22-16.5 to award of contracts under chapter Sec. 5. (a) IC 5-22-16.5 (Disqualification of Contractors Dealing with the Government of Iran) applies to the awarding of contracts, including contracts for professional services, under this article.

(b) For purposes of applying IC 5-22-16.5 to contracts awarded under this article, the following apply:

(1) A reference to an "offer" in IC 5-22-16.5 refers to:

(A) a bid for a contract; or

(B) a proposal to provide professional services;

under this article.

(2) A person may not be awarded a contract under this article if the person would be disqualified from being awarded a contract under IC 5-22-16.5.

(3) The procedures, rights, and application of penalties described in IC 5-22-16.5 shall be applied in the context of this article so that the public policy of IC 5-22-16.5 and this article are both implemented.

As added by P.L.21-2012, SEC.1.

IC 4-13.6-7Chapter 7. Bonding, Escrow, and Retainages

4-13.6-7-0.1Application of certain amendments to chapter 4-13.6-7-1Application of chapter 4-13.6-7-2Contract provisions for retainage of payments; escrow accounts and agreements 4-13.6-7-3Amount of retainage withheld 4-13.6-7-4Payment of subcontractors and suppliers; certification of previous payments; incorrect certification 4-13.6-7-5Bid bonds 4-13.6-7-6Payment bonds 4-13.6-7-7Performance bonds 4-13.6-7-8Final settlement with contractor 4-13.6-7-9Payment of subcontractors and suppliers by division; proration of claims; disputed claims 4-13.6-7-10Claims of subcontractors and suppliers; verification; notice to contractors and sureties; actions upon bond 4-13.6-7-11Limitation of actions against sureties 4-13.6-7-12Construction of chapter with other laws

IC 4-13.6-7-0.1Application of certain amendments to chapter Sec. 0.1. The amendments made to this chapter by P.L.133-2007 apply only to public works contracts entered into after June 30, 2007.

As added by P.L.220-2011, SEC.37.

IC 4-13.6-7-1Application of chapter Sec. 1. The director may apply the retainage provisions of this chapter to public works projects with an estimated cost less than the amount specified in section 2 of this chapter.

As added by P.L.24-1985, SEC.7. Amended by P.L.133-2007, SEC.2.

IC 4-13.6-7-2Contract provisions for retainage of payments; escrow accounts and agreements Sec. 2. (a) If the estimated cost of a public works project is one million dollars ($1,000,000) or more, the division shall include as part of the public works contract provisions for the retainage of portions of payments by the division to the contractor, by the contractor to subcontractors, and for the payment of subcontractors and suppliers by the contractor. The contract must provide that the division may withhold from the contractor sufficient funds from the contract price to pay subcontractors and suppliers as provided in section 4 of this chapter.

(b) A public works contract and contracts between contractors and subcontractors, if portions of the public works contract are subcontracted, may include a provision that at the time any retainage is withheld, the division or the contractor, as the case may be, may place the retainage in an escrow account, as mutually agreed, with:

(1) a bank;

(2) a savings and loan institution;

(3) the state of Indiana; or

(4) an instrumentality of the state of Indiana;

as escrow agent. The parties to the contract shall select the escrow agent by mutual agreement. The parties to the agreement shall enter into a written agreement with the escrow agent.

(c) The escrow agreement must provide the following:

(1) The escrow agent shall promptly invest all escrowed principal in the obligations that the escrow agent selects, in its discretion.

(2) The escrow agent shall hold the escrowed principal and income until it receives notice from both of the other parties to the escrow agreement specifying the percentage of the escrowed principal to be released from the escrow and the persons to whom this percentage is to be released. When it receives this notice, the escrow agent shall promptly pay the designated percentage of escrowed principal and the same percentage of the accumulated escrowed income to the persons designated in the notice.

(3) The escrow agent shall be compensated for its services as the parties may agree. The compensation shall be a commercially reasonable fee commensurate with fees being charged at the time the escrow fund is established for the handling of escrow accounts of like size and duration. The fee must be paid from the escrowed income of the escrow account.

(d) The escrow agreement may include other terms and conditions that are not inconsistent with subsection (c). Additional provisions may include provisions authorizing the escrow agent to commingle the escrowed funds held under other escrow agreements and provisions limiting the liability of the escrow agent.

As added by P.L.24-1985, SEC.7. Amended by P.L.22-1997, SEC.3; P.L.160-2006, SEC.4; P.L.172-2011, SEC.7.

IC 4-13.6-7-3Amount of retainage withheld Sec. 3. (a) To determine the amount of retainage to be withheld, the division shall elect one (1) of the following options:

(1) To withhold no more than six percent (6%) of the dollar value of all work satisfactorily completed until the public work is fifty percent (50%) complete, and nothing further after that.

(2) To withhold no more than three percent (3%) of the dollar value of all work satisfactorily completed until the public work is substantially complete.

(b) Upon substantial completion of the work, the division shall withhold the following:

(1) If there are any remaining uncompleted minor items, until those items are completed, an amount equal to two hundred percent (200%) of the value of each item as determined by the architect-engineer.

(2) Any amounts required to be withheld under section 8(b) of this chapter.

As added by P.L.24-1985, SEC.7. Amended by P.L.75-2012, SEC.1.

IC 4-13.6-7-4Payment of subcontractors and suppliers; certification of previous payments; incorrect certification Sec. 4. (a) Within ten (10) days of receipt of any payment by the state or the escrow agent, the contractor or escrow agent shall pay each subcontractor and each supplier the appropriate share of the payment the contractor received based upon the service performed by the subcontractor or the materials received from the supplier.

(b) The contractor shall furnish to the division a sworn statement or certification at the time of payment to it that all subcontractors and suppliers have received their share of the previous payment to the contractor.

(c) If a contractor makes an incorrect certification, the department may do any of the following:

(1) Consider the incorrect certification a breach of contract and do any of the following:

(A) Cancel the contract.

(B) Collect from the contractor all funds paid to the contractor under the contract.

(C) Exercise all of the state's rights set out in the contract.

(2) Pursue remedies against the contractor for falsifying an affidavit.

(3) Revoke the contractor's qualification under IC 4-13.6-4-13(b).

(4) Use the incorrect certification as a basis for finding the contractor not responsible when awarding other contracts.

As added by P.L.24-1985, SEC.7. Amended by P.L.5-1993, SEC.12.

IC 4-13.6-7-5Bid bonds Sec. 5. (a) The director:

(1) may require each contractor of a public works project with an estimated cost of not more than two hundred thousand dollars ($200,000); and

(2) shall require each contractor of a public works project with an estimated cost of more than two hundred thousand dollars ($200,000);

to submit a good and sufficient bid bond with the bid. The bid bond may equal any percentage of the estimated cost of the public works project that the director requires.

(b) The division may accept bonds provided on forms specified by the department or on forms given by surety companies.

As added by P.L.24-1985, SEC.7. Amended by P.L.133-2007, SEC.3.

IC 4-13.6-7-6Payment bonds Sec. 6. (a) If the estimated cost of the public works project is more than two hundred thousand dollars ($200,000), the division shall require the contractor to execute a good and sufficient payment bond to the department for the state in an amount equal to one hundred percent (100%) of the total contract price. The bond shall include at least the following provisions:

(1) The contractor, its successors and assigns, whether by operation of law or otherwise, and all subcontractors, their successors and assigns, whether by operation of law or otherwise, shall pay all indebtedness that may accrue to any person on account of any labor or service performed or materials furnished in relation to the public work.

(2) The bond shall directly inure to the benefit of subcontractors, laborers, suppliers, and those performing service or who may have furnished or supplied labor, material, or service in relation to the public work.

(3) No change, modification, omission, or addition in or to the terms or conditions of the contract, plans, specifications, drawings, or profile or any irregularity or defect in the contract or in the procedures preliminary to the letting and awarding of the contract shall affect or operate to release or discharge the surety in any way.

(4) The provisions and conditions of this chapter shall be a part of the terms of the contract and bond.

(b) The division may permit the bond given by the contractor to provide for incremental bonding in the form of multiple or chronological bonds that, if taken as a whole, equal the total contract price.

(c) The division may accept bonds provided on forms specified by the division or on forms given by surety companies.

(d) The division shall hold the bond of a contractor for the use and benefit of any claimant having an interest in it and entitled to its benefits.

(e) The division shall not release sureties of a contractor until the expiration of one (1) year after the final settlement with the contractor.

(f) If the estimated cost of the public works project is less than or equal to two hundred thousand dollars ($200,000), the director may require one (1) of the following:

(1) The contractor must execute a good and sufficient payment bond. The director may determine the amount of the bond to be any percentage, but no more than one hundred percent (100%), of the cost of the project.

(2) The division will withhold retainage under this chapter in an amount of ten percent (10%) of the dollar value of all payments made to the contractor until the public work is substantially completed.

As added by P.L.24-1985, SEC.7. Amended by P.L.14-1986, SEC.9; P.L.26-1989, SEC.13; P.L.22-1997, SEC.4; P.L.133-2007, SEC.4.

IC 4-13.6-7-7Performance bonds Sec. 7. (a) If the estimated cost of the public works project is:

(1) at least two hundred thousand dollars ($200,000), the division shall; or

(2) less than two hundred thousand dollars ($200,000), the division may;

require the contractor to execute a good and sufficient performance bond to the department for the state in an amount equal to one hundred percent (100%) of the total contract price.

(b) The bond required under subsection (a) shall include at least the following provisions:

(1) The contractor shall well and faithfully perform the contract.

(2) No change, modification, omission, or addition in or to the terms or conditions of the contract, plans, specifications, drawings, or profile or any irregularity or defect in the contract or in the procedures preliminary to the letting and awarding of the contract shall affect or operate to release or discharge the surety in any way.

(3) The provisions and conditions of this chapter shall be a part of the terms of the contract and bond.

(c) The division may permit the bond given by the contractor to provide for incremental bonding in the form of multiple or chronological bonds that, if taken as a whole, equal the total contract price.

(d) The division may accept bonds provided on forms specified by the division or on forms given by surety companies.

(e) The division shall not release sureties of a contractor until the expiration of one (1) year after the final settlement with the contractor.

As added by P.L.24-1985, SEC.7. Amended by P.L.26-1989, SEC.15; P.L.22-1997, SEC.5; P.L.133-2007, SEC.5.

IC 4-13.6-7-8Final settlement with contractor Sec. 8. (a) Except for amounts withheld:

(1) from the contractor under section 3 of this chapter for uncompleted minor items; and

(2) under subsection (b);

the division may make a full, final, and complete settlement with a contractor, including providing for full payment of all escrowed principal and escrowed income, not later than sixty-one (61) days following the date of substantial completion if the contractor has materially fulfilled all of its obligations under the public works contract.

(b) If the division receives a claim from a subcontractor or a supplier under section 9 of this chapter, the division shall withhold the amount of the claim until the claim is resolved under section 9(c) of this chapter.

(c) After the division makes a final settlement with a contractor, all claims by subcontractors and suppliers to funds withheld from that contractor under section 2 of this chapter are barred.

As added by P.L.24-1985, SEC.7. Amended by P.L.75-2012, SEC.2.

IC 4-13.6-7-9Payment of subcontractors and suppliers by division; proration of claims; disputed claims Sec. 9. (a) If a subcontractor or a supplier files a claim with the division under section 10 of this chapter, and the claim is undisputed, the division shall:

(1) pay the claimant from the amounts retained from the contractor under section 2 of this chapter;

(2) take a receipt for each payment; and

(3) deduct the total amount paid to subcontractors and suppliers from the balance due the contractor.

(b) If there is not a sufficient amount owing to the contractor to pay all subcontractors and suppliers making undisputed claims under section 10 of this chapter, then the division shall prorate the amount withheld from the contractor and shall pay the prorated amount to each subcontractor and supplier entitled to a portion of the amount.

(c) If there is a dispute among the contractor, the subcontractors, and the suppliers to the funds withheld by the division, the division shall retain sufficient funds until the dispute is settled and the correct amount to be paid to each person is determined. When the dispute is resolved, the division shall make payments to persons making claims as provided in this section.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-7-10Claims of subcontractors and suppliers; verification; notice to contractors and sureties; actions upon bond Sec. 10. (a) In order to receive payment under section 9 of this chapter or to proceed against the bond of the contractor required under section 6 of this chapter, a subcontractor or supplier making a claim for payment on account of having performed any labor or having furnished any material or service in relation to a public works project must file a verified claim with the division and deliver a copy of the claim to the contractor not later than sixty (60) days after the date the last labor was performed, the last material was furnished, or the last service was rendered by that subcontractor or supplier. The claim shall state the amount due and owing to the person and shall give as much detail explaining the claim as possible. The division shall notify the contractor of any filed claims before taking action under section 9 of this chapter.

(b) In order to proceed against the bond of the contractor required under section 6 of this chapter, the claimant must notify the surety of the contractor by sending a copy of the claim required by subsection (a) to the surety company. The claimant shall also inform the division and the contractor that the surety has been notified. The division shall supply the claimant with any information the claimant requires to notify the surety and the contractor.

(c) The claimant may not file suit against the contractor's surety on the contractor's bond before thirty (30) days after filing of the claim with the division and delivering a copy of the claim to the contractor. If the claim is not paid in full at the expiration of the thirty (30) day period, the claimant may bring an action in a court of competent jurisdiction in the claimant's own name upon the bond.

As added by P.L.24-1985, SEC.7. Amended by P.L.75-2012, SEC.3.

IC 4-13.6-7-11Limitation of actions against sureties Sec. 11. Unless the bond provides a greater period of time, all suits must be brought against a surety on a bond required by this chapter within one (1) year after final settlement with the contractor under section 8 of this chapter. All suits against the surety after this time are barred.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-7-12Construction of chapter with other laws Sec. 12. This chapter is intended to supplement all other laws protecting labor, subcontractors, or suppliers and shall not be construed as conflicting with them.

As added by P.L.24-1985, SEC.7.

IC 4-13.6-8Chapter 8. Energy Cost Savings Contracts

4-13.6-8-1"Commission" 4-13.6-8-2"Energy cost savings contract" 4-13.6-8-3"Qualified energy savings project" 4-13.6-8-4"Qualified provider" 4-13.6-8-5Contract proposals 4-13.6-8-6Allowable provisions in contracts 4-13.6-8-7Contract approval and guarantee 4-13.6-8-8Records 4-13.6-8-9Reduction of state appropriations due to energy cost savings prohibited 4-13.6-8-10Recommendations to governor

IC 4-13.6-8-1"Commission" Sec. 1. As used in this chapter, "commission" means the Indiana finance authority established by IC 5-1.2-3-1.

As added by P.L.58-1999, SEC.9 and P.L.172-1999, SEC.8. Amended by P.L.235-2005, SEC.58; P.L.189-2018, SEC.14.

IC 4-13.6-8-2"Energy cost savings contract" Sec. 2. As used in this chapter, "energy cost savings contract" means a contract between:

(1) the state or the commission; and

(2) a qualified provider;

for the implementation of at least one (1) qualified energy savings project and related measures for a governmental body.

As added by P.L.58-1999, SEC.9 and P.L.172-1999, SEC.8.

IC 4-13.6-8-3"Qualified energy savings project" Sec. 3. As used in this chapter, "qualified energy savings project" means a facility alteration designed to reduce energy consumption costs or other operating costs. The term includes the following:

(1) Providing insulation of the facility and systems within the facility.

(2) Installing or providing for window and door systems, including:

(A) storm windows and storm doors;

(B) caulking or weatherstripping;

(C) multi-glazed windows and doors;

(D) heat absorbing or heat reflective glazed and coated windows and doors;

(E) additional glazing;

(F) reduction in glass area; and

(G) other modifications that reduce energy consumption.

(3) Installing automatic energy control systems.

(4) Modifying or replacing heating, ventilating, or air conditioning systems.

(5) Unless an increase in illumination is necessary to conform to Indiana laws or rules or local ordinances, modifying or replacing lighting fixtures to increase the energy efficiency of the lighting system without increasing the overall illumination of a facility.

(6) Providing for other measures that reduce energy consumption or reduce operating costs.

As added by P.L.58-1999, SEC.9 and P.L.172-1999, SEC.8.

IC 4-13.6-8-4"Qualified provider" Sec. 4. As used in this chapter, "qualified provider" means a person experienced in the design, implementation, and installation of energy and operational cost savings systems.

As added by P.L.58-1999, SEC.9 and P.L.172-1999, SEC.8.

IC 4-13.6-8-5Contract proposals Sec. 5. (a) At the request of a governmental body, the department, in consultation with the governmental body, may do the following:

(1) Solicit proposals from qualified providers for an energy cost savings contract.

(2) Review proposals and contract with a qualified provider.

(b) An energy cost savings contract may cover more than one (1) governmental body.

As added by P.L.58-1999, SEC.9 and P.L.172-1999, SEC.8.

IC 4-13.6-8-6Allowable provisions in contracts Sec. 6. An energy cost savings contract may do any of the following:

(1) Provide that energy cost savings are guaranteed by the qualified provider to the extent necessary to make payments for the qualified energy savings project.

(2) Include contracts for building operation programs, maintenance, and management or similar agreements with the qualified provider to reduce energy or operational costs.

As added by P.L.58-1999, SEC.9 and P.L.172-1999, SEC.8.

IC 4-13.6-8-7Contract approval and guarantee Sec. 7. (a) After reviewing the proposals submitted and after receiving a recommendation from the budget committee, the department may approve an energy cost savings contract with a qualified provider that best meets the needs of the governmental body if the department reasonably expects the cost of the qualified energy savings project recommended in the proposal would not exceed the amount to be saved in:

(1) energy costs;

(2) operational costs; or

(3) both energy and operational costs;

not later than twenty (20) years after the date installation is completed if the recommendations in the proposal are followed.

(b) An energy cost savings contract must include a guarantee from the qualified provider to the state that:

(1) energy cost savings;

(2) operational cost savings; or

(3) both energy and operational cost savings;

will meet or exceed the cost of the qualified energy project not later than twenty (20) years after the date installation is completed.

As added by P.L.58-1999, SEC.9 and P.L.172-1999, SEC.8. Amended by P.L.71-2009, SEC.1; P.L.99-2009, SEC.1.

IC 4-13.6-8-8Records Sec. 8. (a) The contractor and each subcontractor engaged in installing energy conservation measures under a guaranteed energy savings contract shall keep full and accurate records indicating the names, classifications, and work performed by each worker employed by the respective contractor and subcontractor in connection with the work and an accurate record of the number of hours worked by each worker and the actual wages paid.

(b) The payroll records required to be kept under this section must be open to inspection by an authorized representative of the department and the department of labor.

As added by P.L.58-1999, SEC.9 and P.L.172-1999, SEC.8. Amended by P.L.252-2015, SEC.5.

IC 4-13.6-8-9Reduction of state appropriations due to energy cost savings prohibited Sec. 9. The amount of state appropriations available to a governmental body may not be reduced because of energy cost savings and operational cost savings realized from a qualified energy savings project and an energy cost savings contract.

As added by P.L.58-1999, SEC.9 and P.L.172-1999, SEC.8.

IC 4-13.6-8-10Recommendations to governor Sec. 10. The department may recommend to the governor that an energy cost savings contract be entered into by the commission under IC 4-13.5-1.5.

As added by P.L.58-1999, SEC.9 and P.L.172-1999, SEC.8. Amended by P.L.235-2005, SEC.59.

IC 4-13.6-9Chapter 9. Use of Energy Efficient Technology

4-13.6-9-1"Energy efficient technology" 4-13.6-9-2Public works division to consider energy efficient technologies 4-13.6-9-3Use of energy efficient technologies 4-13.6-9-4Records of contacts and analysis of energy efficient technologies in contract file

IC 4-13.6-9-1"Energy efficient technology" Sec. 1. As used in this chapter, "energy efficient technology" refers to any of the following:

(1) Geothermal heating and cooling.

(2) Geothermal hot water generation.

(3) Solar hot water generation.

(4) Photovoltaic power generation.

(5) Wind power generation.

(6) Combined heat and power.

(7) Heat recovery chillers.

(8) Condensing boilers and low temperature heat.

(9) Air to air energy recovery devices.

(10) Autoclaved aerated concrete.

(11) Automated meter readers.

(12) Any other energy technology that has long term environmental value, energy efficiency, and cost effectiveness.

As added by P.L.159-2003, SEC.1.

IC 4-13.6-9-2Public works division to consider energy efficient technologies Sec. 2. The division shall examine and consider energy efficient technologies for a public works project using a life cycle analysis.

As added by P.L.159-2003, SEC.1.

IC 4-13.6-9-3Use of energy efficient technologies Sec. 3. To the extent technically and economically feasible, the division shall consider the use of energy efficient technology in the plans and specifications for the public works project.

As added by P.L.159-2003, SEC.1.

IC 4-13.6-9-4Records of contacts and analysis of energy efficient technologies in contract file Sec. 4. The division shall keep a record of the following in the public works contract file:

(1) The contacts the division makes with persons that provide energy efficient technology to implement this chapter.

(2) An analysis of the feasibility of using energy efficient technology in the public works project.

As added by P.L.159-2003, SEC.1.

IC 4-14ARTICLE 14. REPEALEDRepealed by P.L.1-1993, SEC.18.

IC 4-15ARTICLE 15. PERSONNEL ADMINISTRATION

Ch. 1.Repealed Ch. 1.5.State Employees Appeals Commission Ch. 1.8.Repealed Ch. 2.Repealed Ch. 2.2.State Civil Service System Ch. 2.5.Repealed Ch. 3.Repealed Ch. 4.Repealed Ch. 5.Repealed Ch. 5.9.Biweekly Payroll Payments Ch. 6.Repealed Ch. 7.Repealed Ch. 8.Repealed Ch. 9.Repealed Ch. 10.State Employees' Bill of Rights Ch. 10.5.Office of Administrative Law Proceedings Ch. 11.Legal Defense of State Employees Ch. 12.Affirmative Action Office Ch. 13.Wellness Programs Ch. 14.Leave for Volunteer Disaster Service Ch. 16.Leave for Bone Marrow or Organ Donation Ch. 17.Employee Organizations

IC 4-15-1Chapter 1. RepealedRepealed by P.L.197-2011, SEC.153; P.L.229-2011, SEC.269.

IC 4-15-1.5Chapter 1.5. State Employees Appeals Commission

4-15-1.5-1Creation; membership 4-15-1.5-2Qualifications of members 4-15-1.5-3Compensation 4-15-1.5-4Oath 4-15-1.5-5Meetings 4-15-1.5-6Powers and duties 4-15-1.5-7Repealed 4-15-1.5-8Separation from personnel board; appropriations

IC 4-15-1.5-1Creation; membership Sec. 1. There is created the State Employees Appeals Commission which shall consist of five (5) members, not more than three (3) of whom shall be adherents of the same political party. One (1) member shall be appointed for a term of one (1) year, one (1) for a term of two (2) years, one (1) for a term of three (3) years, and two (2) for a term of four (4) years. Every member so appointed shall serve until the member's successor shall have been appointed and qualified. Each successor shall serve a term of four (4) years. Any vacancy occurring in the membership of the board for any cause shall be filled by appointment of the governor for the unexpired term.

Formerly: Acts 1973, P.L.19, SEC.1. As amended by P.L.215-2016, SEC.85.

IC 4-15-1.5-2Qualifications of members Sec. 2. The members of the commission shall be citizens of the state who are in sympathy with and have knowledge of the practice of professional personnel administration in public employment with particular appreciation for fairly and impartially determining the validity of employee appeals. No member of the commission shall be a member of any local, state, or national committee of a political party or an officer in any partisan political club or organization, or shall hold or be a candidate for, any elective public office, and upon acceptance of any such appointment or upon any such candidacy, the term of a member of the commission shall expire. Upon the acceptance of any other remunerative appointment to public office, the term of a member shall expire.

Formerly: Acts 1973, P.L.19, SEC.1. As amended by Acts 1982, P.L.23, SEC.4.

IC 4-15-1.5-3Compensation Sec. 3. Each member of the commission shall receive as compensation for services a salary and in addition shall receive actual and necessary traveling expenses and other expenses in the performance of the member's duties in the amount approved by the governor and the budget agency.

Formerly: Acts 1973, P.L.19, SEC.1. As amended by P.L.215-2016, SEC.86.

IC 4-15-1.5-4Oath Sec. 4. Before entering upon the discharge of official duties, each member of the commission shall take and subscribe to an oath of office, which shall be filed in the office of the secretary of state.

Formerly: Acts 1973, P.L.19, SEC.1.

IC 4-15-1.5-5Meetings Sec. 5. The commission shall meet in rooms provided by the personnel department and assume the duties of office. Three (3) members of the commission shall constitute a quorum for the transaction of business, and a majority of votes cast shall be required for the adoption or approval of any official action. The commission shall elect one (1) of the members as the chairman and another member as vice-chairman and the persons so elected shall hold office for one (1) year and until their successors are elected and qualified. The commission shall hold at least one (1) annual meeting and such regular and special meetings as needed as the commission may prescribe by rule or upon the call of the chairman.

Formerly: Acts 1973, P.L.19, SEC.1. As amended by Acts 1982, P.L.23, SEC.5; P.L.178-2006, SEC.1; P.L.134-2012, SEC.4.

IC 4-15-1.5-6Powers and duties Sec. 6. The appeals commission is hereby authorized and required to do the following:

(1) To hear or investigate those appeals from state employees as is set forth in IC 4-15-2.2-42, and fairly and impartially render decisions as to the validity of the appeals or lack thereof. Hearings shall be conducted in accordance with IC 4-21.5.

(2) To make, alter, or repeal rules by a majority vote of its members for the purpose of conducting the business of the commission, in accordance with the provisions of IC 4-22-2.

(3) To recommend to the personnel director such changes, additions, or deletions to personnel policy which the appeals commission feels would be beneficial and desirable.

Formerly: Acts 1973, P.L.19, SEC.1. As amended by Acts 1982, P.L.23, SEC.6; P.L.5-1988, SEC.24; P.L.229-2011, SEC.55.

IC 4-15-1.5-7RepealedFormerly: Acts 1973, P.L.19, SEC.1. Repealed by Acts 1982, P.L.23, SEC.40.

IC 4-15-1.5-8Separation from personnel board; appropriations Sec. 8. The appeals commission shall be totally separate and independent of the personnel board. To ensure the independence of the commission as required by this chapter, appropriations to support the staff and other assistance needed to operate the commission must be made in a separate line item in the budget.

Formerly: Acts 1973, P.L.19, SEC.1. As amended by P.L.178-2006, SEC.2.

IC 4-15-1.8Chapter 1.8. RepealedRepealed by P.L.229-2011, SEC.269.

IC 4-15-2Chapter 2. RepealedRepealed by P.L.229-2011, SEC.269.

IC 4-15-2.2Chapter 2.2. State Civil Service System

4-15-2.2-1Application 4-15-2.2-2"Appointing authority" 4-15-2.2-3"Class of positions" 4-15-2.2-4"Classified employee" 4-15-2.2-5"Commission" 4-15-2.2-6"Department" 4-15-2.2-7"Director" 4-15-2.2-8"Division of the service" 4-15-2.2-9"State agency" 4-15-2.2-10"State civil service" 4-15-2.2-11"State institution" 4-15-2.2-12Construction; merit principles 4-15-2.2-13Department established 4-15-2.2-14Director 4-15-2.2-15Duties of director 4-15-2.2-16Deputies 4-15-2.2-17Examiners 4-15-2.2-18Powers 4-15-2.2-19Rules 4-15-2.2-20Divisions of the service 4-15-2.2-21Classified service 4-15-2.2-22Unclassified service 4-15-2.2-23Classified service; standard for dismissal, demotion, or suspension 4-15-2.2-24Unclassified service; at-will employee 4-15-2.2-25Reorganization of agency; impact on unclassified positions 4-15-2.2-26Classification plan; review of vacant positions 4-15-2.2-27Pay plan 4-15-2.2-27.5Revision or adjustment to pay plan; effectiveness 4-15-2.2-28Use of classification titles or code numbers 4-15-2.2-29Vacancies in classified service 4-15-2.2-30Rejection of application for employment; grounds 4-15-2.2-31Notification of available job positions 4-15-2.2-32Classified service; veteran preference 4-15-2.2-33Certification and placement of individuals with a disability 4-15-2.2-34Classified service; work test period 4-15-2.2-35Reassignment; reorganization 4-15-2.2-36Evaluation standards; service ratings 4-15-2.2-37Report to director; change in employee status 4-15-2.2-38Personnel records; roster; analysis 4-15-2.2-39Rules governing hours of work and leaves of absence 4-15-2.2-40Lay off and furlough authority; reduction in hours 4-15-2.2-41Recall after lay off 4-15-2.2-42Complaint procedure 4-15-2.2-43Retirement benefits 4-15-2.2-44Equal opportunity requirements 4-15-2.2-45Resignation; election to public office 4-15-2.2-46Prohibition on false statements and fraud related to employment or administration of civil service system 4-15-2.2-47Prohibition on accepting or soliciting benefit for appointment or promotion of employee 4-15-2.2-48Powers; administration of oaths; subpoenas; examinations; production of records 4-15-2.2-49Grounds for dismissal; failure to appear; failure to testify 4-15-2.2-50Agreements to provide services to political subdivision 4-15-2.2-51Construction; effect of law on grants 4-15-2.2-52References to predecessor agency or law 4-15-2.2-53State civil service system

IC 4-15-2.2-1Application Sec. 1. (a) Except as provided in subsection (b), this chapter applies to employees of a governmental entity that exercises any of the executive powers of the state under the direction of the governor or lieutenant governor.

(b) This chapter does not apply to the following:

(1) The legislative department of state government.

(2) The judicial department of state government.

(3) The following state elected officers and their personal staffs:

(A) The governor.

(B) The lieutenant governor.

(C) The secretary of state.

(D) The treasurer of state.

(E) The state comptroller.

(F) The attorney general.

(4) A body corporate and politic of the state created by state statute.

(5) A political subdivision (as defined in IC 36-1-2-13).

(6) An inmate who is working in a state penal, charitable, correctional, or benevolent institution.

(7) The state police department.

(c) This subsection does not apply to a political subdivision, the ports of Indiana (established by IC 8-10-1-3), or the northern Indiana commuter transportation district (established under IC 8-5-15). The chief executive officer of a governmental entity that is exempt from this chapter under subsection (b) may elect to have this chapter apply to all or a part of the entity's employees by submitting a written notice of the election to the director.

As added by P.L.229-2011, SEC.56. Amended by P.L.121-2016, SEC.2; P.L.219-2017, SEC.12; P.L.8-2019, SEC.11; P.L.43-2021, SEC.15; P.L.9-2024, SEC.95.

IC 4-15-2.2-2"Appointing authority" Sec. 2. As used in this chapter, "appointing authority" means the head of a department, division, board, or commission, or an individual or group of individuals who have the power by law or by lawfully delegated authority to make appointments to positions in the state civil service.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-3"Class of positions" Sec. 3. As used in this chapter, "class" or "class of positions" means a group of positions in the state civil service determined by the director to have sufficiently similar duties, authority, and responsibility such that:

(1) the same qualifications may reasonably be required for; and

(2) the same schedule of pay can be equitably applied to;

all positions in the group.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-4"Classified employee" Sec. 4. As used in this chapter, "classified employee" means an employee who:

(1) has been appointed to a position in the state classified service;

(2) has completed the working test period under section 34 of this chapter; and

(3) has been certified by the appointing authority for that classification of positions.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-5"Commission" Sec. 5. As used in this chapter, "commission" refers to the state employees appeals commission created by IC 4-15-1.5-1.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-6"Department" Sec. 6. As used in this chapter, "department" refers to the state personnel department established by section 13 of this chapter. The term includes the director.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-7"Director" Sec. 7. As used in this chapter, "director" refers to the state personnel director appointed under section 14 of this chapter.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-8"Division of the service" Sec. 8. As used in this chapter, "division of the service" means any of the following that are subject to this chapter and whose positions are under the same appointing authority:

(1) A state department.

(2) A division or branch of a state department.

(3) An agency of the state government.

(4) A branch of the state civil service.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-9"State agency" Sec. 9. As used in this chapter, "state agency" means an authority, board, branch, commission, committee, department, division, or other instrumentality of state government that is subject to this chapter. The term does not include a state educational institution (as defined in IC 21-7-13-32).

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-10"State civil service" Sec. 10. As used in this chapter, "state civil service" means public service by individuals who are subject to this chapter. The term includes the state classified service (as the term is described in section 21 of this chapter) and the unclassified service (as the term is described in section 22 of this chapter).

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-11"State institution" Sec. 11. As used in this chapter, "state institution" means any of the following:

(1) A state institution (as defined in IC 12-7-2.1-318).

(2) A correctional facility owned by the state and operated by the department of correction.

(3) The Indiana School for the Deaf established by IC 20-22-2-1.

(4) The Indiana School for the Blind and Visually Impaired established by IC 20-21-2-1.

(5) The Indiana Veterans' Home as described in IC 10-17-9.

(6) Any other facility owned and operated by the state whose employees participate in the state civil service.

As added by P.L.229-2011, SEC.56. Amended by P.L.189-2018, SEC.15; P.L.145-2026, SEC.6.

IC 4-15-2.2-12Construction; merit principles Sec. 12. (a) This chapter shall be liberally construed so as to increase governmental efficiency and responsiveness and to ensure the employment of qualified persons in the state classified service on the basis of the following merit principles:

(1) Recruitment, selection, and promotion of employees on the basis of an individual's relative ability, knowledge, and skills.

(2) The provision of equitable and adequate compensation.

(3) The training of employees to ensure high quality performance.

(4) The retention of employees based on:

(A) the quality of the employees' performance; and

(B) the correction of inadequate performance;

and the dismissal of employees whose inadequate performance is not corrected.

(5) Fair treatment of applicants and employees in all aspects of personnel administration:

(A) without regard to political affiliation, race, color, national origin, gender, religious creed, age, or disability; and

(B) with proper regard for the applicants' and employees' privacy and constitutional rights as citizens.

(6) Protection of employees from coercion for partisan political purposes, and prohibition on an employee using the employee's official authority to interfere with, or affect the result of, an election or nomination for political office.

(b) All employment matters in the state classified service are guided by the merit principles set forth in subsection (a).

(c) The personnel administration systems adopted under this chapter govern and limit all other state employment matters and every appointing authority.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-13Department established Sec. 13. The state personnel department is established.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-14Director Sec. 14. (a) The governor shall appoint a director who is responsible for administering the department.

(b) The director serves at the governor's pleasure.

(c) The governor shall set the director's compensation.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-15Duties of director Sec. 15. The director shall do the following:

(1) Direct and supervise all administrative and technical activities of the department.

(2) Survey the administrative organization and procedures, including personnel procedures, of all state agencies, and submit to the governor measures to do the following among state agencies:

(A) Secure greater efficiency and economy.

(B) Minimize the duplication of activities.

(C) Effect better organization and procedures.

(3) Develop personnel policies, methods, procedures, and standards for all state agencies.

(4) Establish and maintain a roster of all employees in the state civil service.

(5) Prepare, or cause to be prepared, a classification and pay plan for the state civil service.

(6) Administer the classification and pay plan prepared under subdivision (5).

(7) Allocate each position in the state civil service to its proper class.

(8) Approve individuals for appointment to positions in the state civil service.

(9) Approve employees for transfer, demotion, or promotion within the state civil service.

(10) Approve employees for suspension, layoff, or dismissal from the state civil service.

(11) Rate the service of employees.

(12) Arrange, in cooperation with the directors of the divisions of the service, for employee training.

(13) Make available employee relations specialists to help employees:

(A) resolve employment related problems; and

(B) understand the procedures that are available for redress of grievances that the employee relations specialists do not resolve.

(14) Investigate systems of appointment and promotion in operation in various departments or divisions of the state government.

(15) Investigate and approve the need for existing and new positions in the state civil service.

(16) Investigate periodically the operation and effectiveness of this chapter and rules adopted under this chapter.

(17) Implement, administer, and enforce this chapter and rules and policies adopted under this chapter.

(18) Appoint employees, experts, and special assistants, as necessary, to effectively carry out this chapter.

(19) Perform any other lawful acts that the director considers necessary or desirable to carry out this chapter.

(20) Perform any other duties imposed by this chapter or assigned by the governor.

(21) Provide offices, rooms, and staff assistance to the office of administrative law proceedings established by IC 4-15-10.5-7.

As added by P.L.229-2011, SEC.56. Amended by P.L.205-2019, SEC.3.

IC 4-15-2.2-16Deputies Sec. 16. The director shall appoint one (1) or more employees of the department as the director's deputies.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-17Examiners Sec. 17. (a) The director may employ such expert or special examiners as may be required for the conduct of tests for positions in the state civil service.

(b) The director may select officers or employees in the state civil service to act as examiners in the preparation and rating of the tests described in subsection (a). An appointing authority may excuse any employee in the appointing authority's division of the service from the employee's regular duties for the time required to work as an examiner.

(c) Officers and employees are not entitled to extra pay for their service as examiners, but are entitled to reimbursement for necessary traveling and other expenses.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-18Powers Sec. 18. The department may do the following:

(1) Acquire, lease, own, or sell property in the name of the state in order to carry out its responsibilities under this chapter.

(2) Adopt a seal.

(3) Contract with persons outside the department to do those things that in the director's opinion cannot be adequately or efficiently handled by the department.

(4) Sue and be sued.

(5) Hire attorneys.

(6) Administer oaths.

(7) Take depositions.

(8) Issue subpoenas.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-19Rules Sec. 19. The director may adopt rules under IC 4-22-2 that the director considers necessary, appropriate, or desirable to carry out the department's responsibilities under this chapter.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-20Divisions of the service Sec. 20. The state civil service is divided into the following parts:

(1) The state classified service.

(2) The unclassified service.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-21Classified service Sec. 21. (a) Except as provided in subsection (b), the state classified service consists of positions in programs that have a federal statutory or regulatory requirement for the establishment and maintenance of personnel standards on a merit basis, including positions under the following:

(1) Employment Security (Unemployment Insurance and Employment Services) (26 U.S.C. 3301 et seq., 29 U.S.C. 2801 et seq., 38 U.S.C. 2000 et seq., 42 U.S.C. 501 et seq., and 42 U.S.C. 1101 et seq.).

(2) Federal Payments for Foster Care and Adoption Assistance (42 U.S.C. 673).

(3) Supplemental Nutrition Assistance Program (7 U.S.C. 2011 et seq.).

(4) Grants to States for Aid to the Blind (42 U.S.C. 1201 et seq.).

(5) Medical Assistance (Medicaid) (42 U.S.C. 1396 et seq.).

(6) Occupational Safety and Health Act (29 U.S.C. 651 et seq.).

(7) Occupational Safety and Health Grants to States (29 U.S.C. 673).

(8) Robert T. Stafford Disaster Assistance and Emergency Relief Act (42 U.S.C. 5121 et seq.).

(9) Social Security Act (42 U.S.C. 301 et seq.).

(10) State and Community Programs on Aging and the Older Americans Act (42 U.S.C. 3001 et seq.).

(11) Wagner-Peyser Act (29 U.S.C. 49 et seq.).

(b) The following positions are exempt from the state classified service:

(1) An officer or employee appointed by the governor or lieutenant governor.

(2) A deputy, an administrative assistant, a secretary, or another position in a confidential relationship to an officer or employee described in subdivision (1).

(3) An employee who holds an executive level position:

(A) who is the head of a division or major unit within a state agency;

(B) who is a regional director or manager for a state agency, regardless of the title of the position; or

(C) who, as a substantial part of the position's duties, provides meaningful input on:

(i) the development of policy goals; or

(ii) the implementation of policy.

(4) The superintendent or director of a state institution.

(5) The highest ranking employee of a state agency who:

(A) holds an executive level position; and

(B) has primary responsibility for one (1) or more of the following functions:

(i) Public information.

(ii) Legal matters.

(iii) Fiscal matters.

(iv) Security or internal affairs.

(v) Human resources.

(c) This section may not be construed to include in the state classified service a position in a governmental entity listed in section 1(b) of this chapter unless the chief executive officer of the governmental entity makes the election described in section 1(c) of this chapter to have all or a part of the governmental entity's employees participate in the state civil service.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-22Unclassified service Sec. 22. (a) The unclassified service consists of all offices and positions in the state civil service other than those in the state classified service.

(b) The unclassified service is separate from the state classified service.

(c) Except as expressly provided in this chapter, the human resource management systems applicable to the state classified service do not apply to the unclassified service.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-23Classified service; standard for dismissal, demotion, or suspension Sec. 23. (a) An employee in the state classified service who has successfully completed a working test period may be dismissed, demoted, or suspended only for just cause, including cause under section 49 of this chapter.

(b) A classified employee is entitled to appeal a dismissal, demotion, or suspension as provided in section 42 of this chapter.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-24Unclassified service; at-will employee Sec. 24. (a) An employee in the unclassified service is an employee at will and serves at the pleasure of the employee's appointing authority.

(b) An employee in the unclassified service may be dismissed, demoted, disciplined, or transferred for any reason that does not contravene public policy.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-25Reorganization of agency; impact on unclassified positions Sec. 25. Whenever a state agency or state institution is added to the classified part of the state civil service established by this chapter, an employee of the state agency or state institution who is in a position that is not subject to the classified provisions of this chapter is entitled to continue in that position until the employee has an opportunity to acquire classified employee status.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-26Classification plan; review of vacant positions Sec. 26. (a) The director, after consulting with appointing authorities and other qualified authorities, shall determine, or cause to be determined, the authority, duties, and responsibilities of all positions in the state civil service.

(b) The director shall prepare a classification plan that groups all positions in the state civil service in classes, based on the authority, duties, and responsibilities of each position. The classification plan must set forth, for each class of positions, the class title and a statement of the authority, duties, and responsibilities of the class. Each class of positions may be subdivided, and classes may be grouped and ranked in such manner as the director considers appropriate.

(c) The director periodically shall:

(1) review the positions in state civil service; and

(2) reallocate the positions to the proper classes based on the duties and responsibilities of the positions at the time of the review under subdivision (1).

(d) Upon request by the budget director under IC 4-13-2-18(k), the director shall:

(1) review permanent full-time positions which have been vacant for ninety (90) days; and

(2) either:

(A) reallocate a vacant position to the proper class based on the duties and responsibilities of the position at the time of the review under subdivision (1); or

(B) eliminate the position from state civil service.

As added by P.L.229-2011, SEC.56. Amended by P.L.182-2025, SEC.5.

IC 4-15-2.2-27Pay plan Sec. 27. (a) After consultation with the budget agency, the director shall prepare and recommend to the governor a pay plan for all employees holding positions for which compensation is not fixed by law.

(b) The pay plan must provide, for each class of positions, a minimum and maximum rate of pay as well as any intermediate rates of pay that the director considers necessary or equitable. In establishing the rates, the director shall consider the following factors:

(1) The experience in recruiting for positions in the state civil service.

(2) The prevailing rates of pay for the service performed and for comparable services in public and private employment.

(3) The cost of living.

(4) Benefits, other than the rate of pay, available to or received by employees.

(5) The state's financial condition and policies.

(c) The pay plan takes effect after the plan is approved by the budget agency and accepted by the governor.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-27.5Revision or adjustment to pay plan; effectiveness Sec. 27.5. Before a revision or adjustment to a pay plan developed under section 27 of this chapter for which all employees are generally eligible may take effect, the director shall submit the proposed pay plan revision or adjustment to the budget committee for review. The requirement under this section does not apply to an increase in an employee's salary or rate of pay that is:

(1) based on an evaluation under section 36 of this chapter;

(2) based upon a promotion granted to the employee;

(3) made specifically to retain the employee; or

(4) made for any other reason for which other employees are not eligible.

As added by P.L.201-2023, SEC.74.

IC 4-15-2.2-28Use of classification titles or code numbers Sec. 28. (a) Classification titles or corresponding code numbers must be used to designate positions in all personnel, accounting, budget, appropriation, and financial records and communications of all state departments, institutions, and agencies.

(b) A person may not be appointed to or employed in a position in the state civil service unless the director has approved the class title of the position as appropriate to the duties to be performed.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-29Vacancies in classified service Sec. 29. Vacancies in the state classified service may be filled only by a process approved by the director in accordance with the merit principles set forth in section 12 of this chapter.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-30Rejection of application for employment; grounds Sec. 30. An application for employment may be rejected if the department determines that the applicant:

(1) lacks any of the required qualifications;

(2) is incapable of performing the essential functions of the position that the applicant is seeking;

(3) has been convicted of a crime;

(4) has been dismissed from the public service;

(5) has made a false statement of a material fact; or

(6) committed or attempted to commit a fraud or deception in connection with submitting an application or attempting to secure an appointment to the state civil service.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-31Notification of available job positions Sec. 31. (a) The director shall inform prospective applicants for state employment of the process for obtaining state employment.

(b) The director may advertise or employ any other methods of publicizing opportunities for employment in state civil service.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-32Classified service; veteran preference Sec. 32. (a) Former members of the armed forces of the United States who meet both of the following requirements shall receive a preference for appointment or reemployment in the state classified service:

(1) The veteran served in any branch of the armed forces.

(2) The veteran was not discharged or separated from the armed forces under conditions set forth in IC 10-17-12-8.1(2).

(b) When:

(1) preemployment interviews of external candidates are conducted; and

(2) the qualified applicant pool includes veterans;

veterans must be included in the group offered interviews.

(c) In computing seniority for purposes of a personnel reduction in state civil service, the computation must include the length of time the employee spent in the armed forces of the United States.

As added by P.L.229-2011, SEC.56. Amended by P.L.238-2025, SEC.4; P.L.94-2026, SEC.3.

IC 4-15-2.2-33Certification and placement of individuals with a disability Sec. 33. (a) As used in this section, "individual with a disability" means an individual:

(1) with a physical or mental impairment that substantially limits one (1) or more of the major life activities of the individual; or

(2) who:

(A) has a record of; or

(B) is regarded as;

having an impairment described in subdivision (1).

(b) Notwithstanding any other provision of this chapter, an Indiana rehabilitation facility or the division of disability, aging, and rehabilitative services may certify that an individual:

(1) is an individual with a disability; and

(2) possesses the required knowledge, skill, and ability to perform the essential functions of a position classification:

(A) with or without reasonable accommodation; or

(B) with special accommodation for supported employment.

(c) An applicant with a disability who is certified under subsection (b) may be appointed to a position in a classification for which the applicant is certified.

As added by P.L.229-2011, SEC.56. Amended by P.L.122-2026, SEC.3.

IC 4-15-2.2-34Classified service; work test period Sec. 34. (a) Every person appointed to a classification in the state classified service shall complete a working test period while occupying a position in the classification. The working test period begins immediately upon the person's appointment and continues until a time established by the director. At least once during the working test period, the appointing authority shall prepare for the director, in the manner specified by the director, a full performance appraisal of the employee's work.

(b) Subject to subsection (c), the appointing authority may remove an employee for any reason at any time during the employee's working test period. The appointing authority shall immediately report the removal to the director and to the employee who is removed.

(c) If the director finds during an employee's working test period that the employee was appointed as a result of error or fraud, the director may remove the employee after providing the employee with notice and an opportunity to be heard.

(d) Before the expiration of an employee's working test period, the appointing authority shall notify the director as to:

(1) whether the services of the employee have been satisfactory; and

(2) whether the appointing authority will continue the employee's employment after the working test period ends.

The appointing authority shall provide the employee with a copy of the notice given to the director.

(e) Sections 23 and 42 of this chapter do not apply to an employee who is removed during a working test period for the initial classification in the state classified service to which the employee is appointed.

(f) The removal of an employee in the classified service from a working test period for a promotion from one (1) classification to another classification is not appealable, unless the removal results in the employee's dismissal or layoff.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-35Reassignment; reorganization Sec. 35. (a) An appointing authority may at any time reassign an employee from one (1) position to another position in the same class or rank in the division of the service. The appointing authority shall, immediately after making the reassignment, give notice of the reassignment to the director.

(b) The transfer of a classified employee from a position in a division of the service to a position of the same class or rank in another division of the service requires the approval of:

(1) the appointing authorities of both divisions of the service; and

(2) the director.

(c) A classified employee must be appointed, rather than transferred, to a position:

(1) in another class of a higher rank; or

(2) for which the requirements for appointment are substantially dissimilar to the requirements for the position the employee currently holds.

(d) The reassignment of a classified employee to a position in a class of a lower rank is a demotion. Unless the employee consents to the demotion in writing, the appointing authority must comply with section 23 of this chapter in making the demotion. A classified employee is entitled to appeal the demotion in accordance with section 42 of this chapter.

(e) This section may not be construed to prohibit an appointing authority from temporarily substituting duties unrelated to an employee's position classification for the employee's usual duties.

(f) This section may not be construed to impair the director's authority to reclassify or reorganize positions in the state civil service as long as the reclassification or reorganization is not based on a classified employee's misconduct or poor performance. The just cause standard described in section 23 of this chapter does not apply to such a reclassification or reorganization.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-36Evaluation standards; service ratings Sec. 36. (a) In cooperation with appointing authorities, the director shall establish, and may periodically amend:

(1) the standards of performance for employees;

(2) the expected outcomes for employees; and

(3) a system of service ratings based upon the standards described in subdivisions (1) and (2).

(b) Employee performance standards and expected outcomes must be specific, measurable, achievable, relevant to the strategic objective of the employee's state agency or state institution, and time sensitive.

(c) Each employee at all levels of the state civil service shall be held accountable for participating in the process of establishing the standards, outcomes, and ratings described in this section.

(d) Each appointing authority shall, at periodic intervals (but at least annually), make, and report to the director, service ratings for the employees in the appointing authority's division of the service. As requested by the director, the appointing authority shall provide the information on which the appointing authority relied in determining a service rating.

(e) Service ratings may be used as follows:

(1) To determine salary increases and decreases within the limits established by law and by the pay plan developed under section 27 of this chapter.

(2) As a factor in making promotions.

(3) As a means of discovering employees:

(A) who are candidates for promotion or transfer; or

(B) who, because of a low service rating, are candidates for demotion or dismissal.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-37Report to director; change in employee status Sec. 37. (a) An appointing authority shall report to the director each appointment, transfer, promotion, demotion, dismissal, change of salary rate, absence from duty, and other temporary or permanent change in the status of an employee in the appointing authority's division of the service.

(b) The director shall prescribe the submission deadline, the form, and the supporting or pertinent information required for the report.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-38Personnel records; roster; analysis Sec. 38. (a) The director shall maintain a perpetual roster that includes at least the following information for each employee in the state civil service system:

(1) Whether the employee is in the state classified service or the unclassified service.

(2) The title of the position the employee holds.

(3) The department, state agency, or state institution to which the employee is assigned.

(4) The employee's pay rate.

(5) The employee's date of appointment.

(6) Any other information that the director considers pertinent.

(b) The director shall maintain any other personnel records that the director considers desirable.

(c) The director shall provide tabulations and analyses of state employee personnel data that are available to the director to:

(1) the governor;

(2) the general assembly in the electronic format required by IC 5-14-6;

(3) the budget director;

(4) department and institution directors; and

(5) other persons to the extent required by and in accordance with IC 5-14-3.

(d) All officers and employees shall, during usual business hours:

(1) grant to the director, or any agent or employee of the department designated by the director, unlimited access to the premises and records pertaining to personnel matters that are under the officers' or employees' control; and

(2) furnish to the director, or the director's agent, the facilities, assistance, and information required to administer this chapter.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-39Rules governing hours of work and leaves of absence Sec. 39. Rules adopted by the department for state civil service employees must provide for the hours of work and leaves of absence.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-40Lay off and furlough authority; reduction in hours Sec. 40. (a) An appointing authority has the authority to lay off or furlough employees or to reduce hours of employment for any of the following reasons:

(1) Lack of funds.

(2) A reduction in spending authorization.

(3) Lack of work.

(4) Efficiency.

(b) The appointing authority has the authority to determine the extent, effective dates, and length of a layoff, furlough, or reduction in hours taken under subsection (a).

(c) The appointing authority shall determine the classifications affected and the number of employees laid off in each classification and county to which a layoff applies.

(d) In determining a layoff, the appointing authority must consider all employees under the same appointing authority, within the classification affected, and within the county affected, and consider service ratings first. Thereafter, consideration may be given to the following relevant factors:

(1) Disciplinary record.

(2) Knowledge, skill, and ability.

(3) Seniority.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-41Recall after lay off Sec. 41. (a) As used in this section, "state seniority" means the length of an employee's unbroken, continuous state employment.

(b) A former employee in the state civil service system has a right of recall to the classification from which the employee was laid off. Recall rights under this section are to positions under the same appointing authority and in the same or a contiguous county from which a former employee was laid off.

(c) A former employee must assert in a timely manner the claim of entitlement to recall in response to the official posting of a vacancy.

(d) A recall under this section is contingent upon the former employee having the knowledge, skill, and ability to perform the duties of the position for which the former employee is applying.

(e) The appointing authority shall recall former employees in the order of the employees' service ratings. In the event of a tie in service ratings, the right to recall is determined by state seniority. If there is a tie in state seniority, the former employee with the highest number comprised of the last four (4) digits of the employee's Social Security number is the employee recalled.

(f) The right to recall under this section expires on the earlier of:

(1) one (1) year after date the employee is laid off; or

(2) the date the employee is reemployed in a permanent position.

(g) For state seniority purposes, an employee who becomes reemployed within one (1) year after the date the employee is laid off is considered to have unbroken, continuous state employment, except that the time that the employee spent in out-of-pay status as a result of the layoff must be deducted from the employee's total seniority.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-42Complaint procedure Sec. 42. (a) An employee in the state civil service system may file a complaint concerning the application of a law, rule, or policy to the complainant. However, a gubernatorial appointee does not have standing to file a complaint under this section.

(b) A complaint filed under this section must identify the law, rule, or policy that was allegedly violated.

(c) An employee who files a complaint under this section must initiate the complaint procedure as soon as possible after the occurrence of the act or condition complained of, and not later than thirty (30) calendar days after the date the employee became aware, or by the exercise of reasonable diligence should have been aware, of the occurrence giving rise to the complaint. An employee who does not initiate the complaint procedure within the thirty (30) day period waives the right to file that complaint.

(d) A remedy granted under this section may not extend back more than thirty (30) calendar days before the complaint was initiated.

(e) The following complaint procedure is established:

Step I: The complainant shall reduce the complaint to writing and present the complaint to the appointing authority or the appointing authority's designated representative. The appointing authority or designee shall conduct any investigation considered necessary and issue a decision, in writing, not later than fifteen (15) calendar days after the date the appointing authority receives the complaint.

Step II: If the appointing authority or the appointing authority's designated representative does not find in favor of the complainant, the complainant may submit the complaint to the director not later than fifteen (15) calendar days after the date of the appointing authority's finding. The director or the director's designee shall review the complaint and issue a decision not later than thirty (30) calendar days after the date the complaint is submitted to the director.

Step III: If the employee is not satisfied with the director's decision, the employee may submit an appeal in writing to the commission not later than fifteen (15) calendar days after the date the employee receives notice of the action taken by the director or the director's designee. The commission shall determine whether all previous steps were completed properly and in a timely manner, and, subject to subsection (f), whether the employee and subject of the complaint meet the jurisdictional requirements. If a procedural or jurisdictional requirement is not met, the commission shall dismiss the appeal. If the procedural and jurisdictional requirements have been met, the commission shall conduct proceedings in accordance with IC 4-21.5-3.

(f) An unclassified employee must establish that the commission has subject matter jurisdiction to hear the employee's wrongful discharge claim by establishing that a public policy exception to the employment at will doctrine was the reason for the employee's discharge. The former employee has the burden of proof on this issue.

(g) In a disciplinary case involving a classified employee, the commission shall defer to the appointing authority's choice as to the discipline imposed, if the appointing authority establishes that there was just cause for the imposition of the discipline. The appointing authority has the burden of proof on this issue.

(h) Decisions of the commission are subject to judicial review in accordance with IC 4-21.5-3.

(i) An employee who is suspended or terminated after a hearing held by the state ethics commission is not entitled to use the procedure set forth in this section. An employee who seeks further review of a suspension or termination imposed by the state ethics commission must seek judicial review of the state ethics commission's decision in accordance with IC 4-21.5-3.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-43Retirement benefits Sec. 43. (a) An employee covered by this chapter:

(1) is eligible for;

(2) must participate in; and

(3) receives the benefits of;

the public employees' retirement fund under IC 5-10.2 and IC 5-10.3.

(b) An employee holding an hourly, temporary, or intermittent appointment:

(1) is not eligible to become a member of the public employees' retirement fund; and

(2) does not earn creditable service for purposes of the public employees' retirement fund for service in those positions.

(c) Notwithstanding any contrary provision, an employee who served in an intermittent form of temporary employment after June 30, 1986, and before July 1, 2003, shall receive creditable service for the period of intermittent employment.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-44Equal opportunity requirements Sec. 44. (a) An officer or employee implementing or administering this chapter may not consider the gender or the political, religious, or racial characteristics of a classified employee.

(b) A classified employee may not be compelled to make political contributions or participate in any form of political activity.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-45Resignation; election to public office Sec. 45. (a) This section does not apply to precinct committeemen, state or national party convention delegates, or candidates for these party positions.

(b) A classified employee who is elected to a federal or state public office is considered to have resigned from state service on the date the person takes office.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-46Prohibition on false statements and fraud related to employment or administration of civil service system Sec. 46. A person may not:

(1) make a false statement, certificate, mark, rating, or report in connection with an appointment under this chapter; or

(2) commit or attempt to commit in any manner fraud that prevents the impartial implementation or administration of this chapter or rules adopted under this chapter.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-47Prohibition on accepting or soliciting benefit for appointment or promotion of employee Sec. 47. A person may not, directly or indirectly, give, render, pay, offer, solicit, or accept money, service, or other valuable consideration:

(1) for, or in connection with, an appointment, a proposed appointment, a promotion, or a proposed promotion to; or

(2) to obtain any advantage in;

a position in the state classified service.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-48Powers; administration of oaths; subpoenas; examinations; production of records Sec. 48. (a) For the purpose of enforcing this chapter, the director and authorized employees of the department have authority to:

(1) administer oaths;

(2) conduct examinations;

(3) subpoena witnesses; and

(4) require:

(A) the attendance of witnesses; and

(B) the production of books, records, and papers;

at any reasonable place.

(b) The director must sign all subpoenas issued under this section.

(c) The circuit or superior court of a county shall compel obedience to subpoenas and requests for the production of books, records, and papers issued under this section, upon a verified written application by the person conducting the examination, ten (10) days notice to the person whose testimony or production is sought, and a showing of the probability of any of the following:

(1) The books, records, and papers are material to the examination.

(2) The witness has information that is material to the examination.

(d) It is unlawful to fail to:

(1) appear in response to a subpoena;

(2) answer questions; or

(3) produce books or papers;

in connection with an investigation or hearing under this chapter.

(e) It is unlawful to knowingly give false testimony at an investigation or hearing under this chapter.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-49Grounds for dismissal; failure to appear; failure to testify Sec. 49. The refusal or failure of an employee in the state classified service to do any of the following is sufficient grounds for the employee's dismissal by the appointing authority:

(1) The employee willfully refuses or fails to appear before:

(A) a court or judge;

(B) a legislative committee; or

(C) an officer, board, or body authorized to conduct a hearing or inquiry.

(2) After making an appearance, the employee refuses to testify or answer questions relating to:

(A) the affairs or government of the state; or

(B) the conduct of any officer or employee.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-50Agreements to provide services to political subdivision Sec. 50. The director may enter into an agreement with a political subdivision (as defined in IC 36-1-2-13) to furnish services related to or involving the administration of the political subdivision's personnel system. The agreement must provide for the reimbursement to the state of the reasonable cost, as determined by the director, of the services and facilities furnished. All political subdivisions are authorized to enter into such agreements.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-51Construction; effect of law on grants Sec. 51. This chapter may not be construed so as to result in the delay or stoppage of grants-in-aid to the state by agencies of the federal government.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-52References to predecessor agency or law Sec. 52. (a) Any reference or cross-reference to the state personnel department in the Indiana Code shall be treated after June 30, 2011, as a reference or cross-reference to the department.

(b) Any reference or cross-reference to IC 4-15-1.8 or IC 4-15-2 shall be treated after June 30, 2011, as a reference or cross-reference to this chapter.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.2-53State civil service system Sec. 53. The human resources management system established by this chapter shall be known as the state civil service system.

As added by P.L.229-2011, SEC.56.

IC 4-15-2.5Chapter 2.5. RepealedRepealed by P.L.229-2011, SEC.269.

IC 4-15-3Chapter 3. RepealedRepealed by P.L.229-2011, SEC.269.

IC 4-15-4Chapter 4. RepealedRepealed by P.L.229-2011, SEC.269.

IC 4-15-5Chapter 5. RepealedRepealed by Acts 1980, P.L.8, SEC.42.

IC 4-15-5.9Chapter 5.9. Biweekly Payroll Payments

4-15-5.9-1Procedure 4-15-5.9-2Deposit of compensation in employee's account in a financial institution; written request by employee

IC 4-15-5.9-1Procedure Sec. 1. (a) Notwithstanding any other law, rule, or custom, the state comptroller shall issue payroll warrants or authorizations for electronic funds transfer under IC 4-13-2-7 to all state employees on a biweekly basis, so that the employees shall receive payment on the same day of the week, in alternate weeks. The state comptroller may provide for staggering of payrolls so that payment in the required manner can be effectively made, in accordance with this chapter.

(b) Should a fiscal year terminate during any biweekly payroll period, that portion of the payroll warrant or authorization representing compensation for services performed during the terminated fiscal year shall be charged against the appropriations for that fiscal year and that portion of the payroll warrant representing compensation for services performed subsequent to the terminated fiscal year shall be charged against the appropriations for the new fiscal year.

Formerly: Acts 1971, P.L.23, SEC.1; Acts 1972, P.L.11, SEC.1. As amended by P.L.23-1985, SEC.3; P.L.9-2024, SEC.96.

IC 4-15-5.9-2Deposit of compensation in employee's account in a financial institution; written request by employee Sec. 2. (a) A state employee may make a written request that any compensation due from the state be deposited to the employee's account in a financial institution. Upon receipt of the request, the state comptroller may:

(1) draw a warrant in favor of the financial institution set forth in the request for the credit of the employee;

(2) in the event more than one (1) employee of the state designates the same financial institution, draw a single warrant in favor of the financial institution for the total amount due the employees and transmit the warrant to the financial institution identifying each employee and the amount to be deposited in each employee's account; or

(3) make a direct deposit to the bank or trust company by electronic funds transfer under IC 4-13-2-7.

(b) The employee's written request shall authorize in advance the direct deposit by warrant or electronic funds transfer of the employee's earnings each time a payroll warrant or electronic funds transfer is issued on the employee's behalf. The employee's written authorization must designate a financial institution and an account number to which the payment is to be credited. The employee's authorization remains in effect until the employee revokes it in writing.

As added by P.L.23-1985, SEC.4. Amended by P.L.9-2024, SEC.97.

IC 4-15-6Chapter 6. RepealedRepealed by Acts 1977, P.L.30, SEC.3.

IC 4-15-7Chapter 7. RepealedRepealed by P.L.105-2012, SEC.3.

IC 4-15-8Chapter 8. RepealedRepealed by P.L.37-1995, SEC.1.

IC 4-15-9Chapter 9. RepealedRepealed by P.L.229-2011, SEC.269.

IC 4-15-10Chapter 10. State Employees' Bill of Rights

4-15-10-0.1Repealed 4-15-10-1Definitions 4-15-10-2Political activities 4-15-10-3Membership in organizations of employees 4-15-10-4Protection of employees reporting violations of state or federal laws 4-15-10-5Exercise of rights; penalties prohibited 4-15-10-6Limitation of rights and remedies prohibited 4-15-10-7Volunteer firefighting activity 4-15-10-8Civil air patrol emergency service operations