Ind. Code ch. 4-13-16.5

in effect

Ind. Code § 4-13-16.5-1 Definitions

Sec. 1. (a) The definitions in this section apply throughout this chapter. (b) "Commission" refers to the governor's commission on supplier diversity established under section 2 of this chapter. (c) "Commissioner" refers to the commissioner of the department. (d) "Contract" means any contract awarded by a state agency or, as set forth in section 2(g)(11) of this chapter, awarded by a recipient of state grant funds, for construction projects or the procurement of goods or services, including professional services. For purposes of this subsection, "goods or services" may not include the following when determining the total value of contracts for state agencies: (1) Utilities. (2) Health care services (as defined in IC 27-8-11-1(c)). (3) Rent paid for real property or payments constituting the price of an interest in real property as a result of a real estate transaction. (e) "Contractor" means a person or entity that: (1) contracts with a state agency; or (2) as set forth in section 2(g)(11) of this chapter: (A) is a recipient of state grant funds; and (B) enters into a contract: (i) with a person or entity other than a state agency; and (ii) that is paid for in whole or in part with the state grant funds. (f) "Department" refers to the Indiana department of administration established by IC 4-13-1-2. (g) "Deputy commissioner" refers to the deputy commissioner for supplier diversity of the department. (h) "Minority business enterprise" or "minority business" means an individual, partnership, corporation, limited liability company, or joint venture of any kind that is owned and controlled by one (1) or more persons who are: (1) United States citizens; and (2) members of a minority group or a qualified minority nonprofit corporation. (i) "NGB-22" means the National Guard Report of Separation form or its predecessor or successor form. (j) "Qualified minority or women's nonprofit corporation" means a corporation that: (1) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code; (2) is headquartered in Indiana; (3) has been in continuous existence for at least five (5) years; (4) has a board of directors that has been in compliance with all other requirements of this chapter for at least five (5) years; (5) is chartered for the benefit of the minority community or women; and (6) provides a service that will not impede competition among minority business enterprises or women's business enterprises at the time a nonprofit applies for certification as a minority business enterprise or a women's business enterprise. (k) "Owned and controlled" means: (1) if the business is a qualified minority nonprofit corporation, a majority of the board of directors are minority; (2) if the business is a qualified women's nonprofit corporation, a majority of the members of the board of directors are women; or (3) if the business is a business other than a qualified minority or women's nonprofit corporation, having: (A) ownership of at least fifty-one percent (51%) of the enterprise, including corporate stock of a corporation; (B) control over the management and active in the day-to-day operations of the business; and (C) an interest in the capital, assets, and profits and losses of the business proportionate to the percentage of ownership. (l) "Minority group" means: (1) African Americans; (2) Native Americans; (3) Hispanic Americans; and (4) Asian Americans. (m) "Separate body corporate and politic" refers to an entity established by the general assembly as a body corporate and politic. (n) "State agency" refers to any authority, board, branch, commission, committee, department, division, or other instrumentality of the executive, including the administrative, department of state government. (o) "Veteran" means an individual who: (1) has previously: (A) served in any branch of the armed forces of the United States or their reserves, in the national guard, or in the Indiana National Guard; and (B) received a discharge from service under conditions other than conditions set forth in IC 10-17-12-8.1(2); or (2) is currently serving in: (A) any branch of the armed forces of the United States or their reserves; (B) the national guard; or (C) the Indiana National Guard. (p) "Veteran owned small business" refers to a small business that: (1) is independently owned and operated; (2) is not dominant in its field of operation; and (3) satisfies the criteria to be a veteran owned small business concern as specified in section 1.5 of this chapter. (q) "Women's business enterprise" means a business that is one (1) of the following: (1) A sole proprietorship owned and controlled by a woman. (2) A partnership or joint venture owned and controlled by women in which: (A) at least fifty-one percent (51%) of the ownership is held by women; and (B) the management and daily business operations are controlled by at least one (1) of the women who owns the business. (3) A corporation or other entity: (A) whose management and daily business operations are controlled by at least one (1) of the women who owns the business; and (B) that is at least fifty-one percent (51%) owned by women, or if stock is issued, at least fifty-one percent (51%) of the stock is owned by at least one (1) of the women. (4) A qualified women's nonprofit corporation. As added by P.L.34-1983, SEC.1. Amended by P.L.18-1991, SEC.12; P.L.8-1993, SEC.21; P.L.195-2001, SEC.1; P.L.84-2004, SEC.1; P.L.2-2007, SEC.37; P.L.228-2007, SEC.1; P.L.3-2008, SEC.5; P.L.87-2008, SEC.1; P.L.1-2009, SEC.9; P.L.114-2010, SEC.2; P.L.15-2020, SEC.1; P.L.42-2024, SEC.31; P.L.238-2025, SEC.3; P.L.94-2026, SEC.2.

Ind. Code § 4-13-16.5-1.1 References to federal statutes or regulations

Sec. 1.1. A reference to a federal statute or regulation in this chapter is a reference to the statute or regulation as in effect January 1, 2001. As added by P.L.195-2001, SEC.2.

Ind. Code § 4-13-16.5-1.3 Repealed

As added by P.L.195-2001, SEC.3. Amended by P.L.228-2007, SEC.2; P.L.114-2010, SEC.3. Repealed by P.L.15-2020, SEC.2.

Ind. Code § 4-13-16.5-1.5 Veteran owned small business concern; eligibility

Sec. 1.5. (a) A business qualifies as a small business for purposes of this section if the business is an Indiana small business concern owned and controlled by veterans, as defined in 15 U.S.C. 632(q)(3) as in effect January 1, 2013, or is an Indiana small business owned and operated by veterans and the business: (1) has: (A) a current verification as a veteran owned small business concern under 38 CFR 74 et seq. by the Center of Veterans Enterprise of the United States Department of Veterans Affairs; or (B) a current certification as a veteran owned small business by the department; (2) is owned and controlled by one (1) or more veterans or, in the case of a corporation, has at least fifty-one percent (51%) of the corporation's stock owned by one (1) or more veterans; and (3) has its principal place of business located in Indiana. (b) The Indiana economic development corporation may assist the department in doing any of the following: (1) Compiling and maintaining a comprehensive list of veteran owned small businesses. (2) Assisting veteran owned small businesses in complying with the procedures for bidding on state contracts. (3) Examining requests from the department for the purchase of supplies or services to help determine which purchases may be consistent with the goal described in section 3.5 of this chapter. (4) Simplifying specifications and contract terms to increase the opportunities for veteran owned small businesses to participate in state contracts. (c) The Indiana economic development corporation, in consultation with the department, may develop programs to encourage cities, counties, towns, townships, and private businesses to adopt the goal for contracts with veteran owned small businesses described in section 3.5 of this chapter. (d) For purposes of this chapter, information submitted by an applicant for certification as a veteran owned small business that contains: (1) personal financial information; or (2) confidential business information; is confidential. (e) For purposes of this chapter, the following forms submitted by an applicant for certification as a veteran owned small business are confidential: (1) DD 214 (as defined in IC 10-17-15-1). (2) NGB-22. (3) All forms submitted to verify current military or naval service status. As added by P.L.15-2020, SEC.3.

Ind. Code § 4-13-16.5-2 Governor's commission on supplier diversity

Sec. 2. (a) There is established a governor's commission on supplier diversity. The commission shall consist of the following members: (1) A governor's designee, who shall serve as chairperson of the commission. (2) The commissioner of the Indiana department of transportation, or the economic opportunity director of the Indiana department of transportation if the commissioner of the Indiana department of transportation so designates. (3) The chairperson of the board of the Indiana economic development corporation or the chairperson's designee. (4) The commissioner of the department of administration. (5) Nine (9) individuals with demonstrated capabilities in business and industry, especially minority business enterprises, women's business enterprises, and veteran owned small businesses, appointed by the governor from the following geographical areas of the state: (A) Three (3) from the northern one-third (1/3) of the state. (B) Three (3) from the central one-third (1/3) of the state. (C) Three (3) from the southern one-third (1/3) of the state. (6) Two (2) members of the house of representatives, no more than one (1) from the same political party, appointed by the speaker of the house of representatives to serve in a nonvoting advisory capacity. (7) Two (2) members of the senate, no more than one (1) from the same political party, appointed by the president pro tempore of the senate to serve in a nonvoting advisory capacity. (8) The deputy commissioner of the department of administration, who shall serve as a nonvoting member. Not more than six (6) of the ten (10) members appointed or designated by the governor may be of the same political party. Members of the commission serve at the pleasure of the appointing authority and may be reappointed to successive terms. Subject to subsection (b), members of the commission appointed under subdivision (1) and subdivision (5) shall serve four (4) year terms. Members of the general assembly appointed to the commission serve two (2) year terms that expire June 30 of an odd-numbered year. A vacancy occurs if a legislative member leaves office for any reason. Any vacancy on the commission shall be filled in the same manner as the original appointment. An individual appointed to fill a vacancy serves on the commission for the remainder of the unexpired term of the individual's predecessor. (b) The terms of the members appointed under subsection (a)(1) or (a)(5) expire as follows: (1) For a member appointed under subsection (a)(1) or (a)(5)(A), June 30, 2025, and every fourth year thereafter. (2) For a member appointed under subsection (a)(5)(B) or (a)(5)(C), June 30, 2027, and every fourth year thereafter. (c) Each member of the commission who is not a state employee is entitled to the following: (1) The minimum salary per diem provided by IC 4-10-11-2.1(b). (2) Reimbursement for mileage, traveling expenses, and other expenses actually incurred in connection with the member's duties as provided under IC 4-13-1-4 and in the state travel policies and procedures established by the Indiana department of administration and approved by the budget agency. The department shall pay expenses incurred under this subsection from amounts appropriated for the operating expenses of the department of administration. (d) Each legislative member of the commission is entitled to receive the same per diem, mileage, and travel allowances established by the legislative council and paid to members of the general assembly serving on interim study committees. The allowances specified in this subsection shall be paid by the legislative services agency from the amounts appropriated for that purpose. (e) A member of the commission who is a state employee is not entitled to any of the following: (1) The minimum salary per diem provided by IC 4-10-11-2.1(b). (2) Reimbursement for traveling expenses as provided under IC 4-13-1-4. (3) Other expenses actually incurred in connection with the member's duties. (f) The commission shall meet at least four (4) times each year at the call of the chairperson. (g) The duties of the commission shall include but not be limited to the following: (1) Identify minority business enterprises, women's business enterprises, and veteran owned small businesses in the state. (2) Assess the needs of minority business enterprises, women's business enterprises, and veteran owned small businesses. (3) Initiate aggressive programs to assist minority business enterprises, women's business enterprises, and veteran owned small businesses in obtaining state contracts. (4) Give special publicity to procurement, bidding, and qualifying procedures. (5) Include minority business enterprises, women's business enterprises, and veteran owned small businesses on solicitation mailing lists. (6) Evaluate the competitive differences between qualified minority or women's nonprofit corporations and other than qualified minority or women's nonprofit corporations and veteran owned small businesses that offer similar services and make recommendation to the department on policy changes necessary to ensure fair competition among minority business enterprises, women's business enterprises, and veteran owned small businesses. (7) Define the duties, goals, and objectives of the deputy commissioner of the department as created under this chapter to assure compliance by all state agencies, separate bodies corporate and politic, and state educational institutions with state and federal legislation and policy concerning the awarding of contracts (including, notwithstanding section 1(d) of this chapter or any other law, contracts of state educational institutions) to minority business enterprises, women's business enterprises, and veteran owned small businesses. (8) Establish annual goals: (A) for the use of minority and women's business enterprises; and (B) derived from a statistical analysis of utilization study of state contracts (including, notwithstanding section 1(d) of this chapter or any other law, contracts of state educational institutions) that are required to be updated every five (5) years. (9) Prepare a review of the commission and the various affected departments of government to be submitted to the governor and the legislative council on March 1 and October 1 of each year, evaluating progress made in the areas defined in this subsection. (10) Ensure that the statistical analysis required under this section: (A) is based on goals for participation of minority business enterprises established in Richmond v. Croson, 488 U.S. 469 (1989); (B) includes information on both contracts and subcontracts (including, notwithstanding section 1(d) of this chapter or any other law, contracts and subcontracts of state educational institutions); and (C) uses data on the combined capacity of minority business enterprises, women's business enterprises, and veteran owned small businesses in Indiana and not just regional data. (11) Establish annual goals for the use of minority business enterprises, women's business enterprises, and veteran owned small businesses for any contract that: (A) will be paid for in whole or in part with state grant funds; and (B) involves the use of real property of a unit. (12) Ensure compliance with the establishment and evaluation of the annual goal for veteran owned small businesses established in section 3.5 of this chapter. (h) The department shall direct contractors to demonstrate a good faith effort to meet the annual participation goals established under subsection (g)(11). The good faith effort shall be demonstrated by contractors using the repository of certified firms created under section 3 of this chapter or a similar repository maintained by a unit. (i) The department shall adopt rules of ethics under IC 4-22-2 for commission members other than commission members appointed under subsection (a)(6) or (a)(7). (j) The department of administration shall furnish administrative support and staff as is necessary for the effective operation of the commission. (k) The commission shall advise the department on developing a statement, to be included in all applications for and agreements governing grants made with state funds, stating the importance of the use of minority business enterprises, women's business enterprises, and veteran owned small businesses in fulfilling the purposes of the grant. (l) For purposes of subsections (g)(11) and (h), "unit" means a county, city, town, township, or school corporation. (m) On or before July 1, 2027, and July 1 biennially thereafter, the commission shall submit a report to the executive director of the legislative services agency, in an electronic format under IC 5-14-6, for review by the interim committee on government in accordance with IC 1-1-15.5-4 and IC 2-5-1.3-13(g). The report shall describe: (1) official action taken; and (2) actionable items considered; by the commission during the preceding two (2) years. As added by P.L.34-1983, SEC.1. Amended by P.L.18-1990, SEC.4; P.L.31-1993, SEC.1; P.L.195-2001, SEC.4; P.L.42-2002, SEC.1; P.L.41-2003, SEC.1; P.L.84-2004, SEC.2; P.L.4-2005, SEC.17; P.L.228-2007, SEC.3; P.L.87-2008, SEC.2; P.L.114-2010, SEC.4; P.L.15-2020, SEC.4; P.L.42-2024, SEC.32; P.L.87-2024, SEC.10; P.L.104-2024, SEC.45; P.L.161-2025, SEC.3.

Ind. Code § 4-13-16.5-3 Deputy commissioner for supplier diversity

Sec. 3. (a) There is created in the department a deputy commissioner for supplier diversity development. Upon consultation with the commission, the commissioner of the department, with the approval of the governor, shall appoint an individual who possesses demonstrated capability in business or industry, especially in minority business enterprises, women's business enterprises, or veteran owned small businesses, to serve as deputy commissioner to work with the commission in the implementation of this chapter. (b) The deputy commissioner shall do the following: (1) Identify and certify minority business enterprises, women's business enterprises, and veteran owned small businesses for state projects. (2) Establish a central certification file. (3) Periodically update the certification status of each minority business enterprise, women's business enterprise, or veteran owned small business. (4) Monitor the progress in achieving the goals established under section 2(g)(8) and 2(g)(11) of this chapter. (5) Require all state agencies, separate bodies corporate and politic, and state educational institutions to report on planned and actual participation of minority business enterprises, women's business enterprises, and veteran owned small businesses in contracts awarded by state agencies. The commissioner may exclude from the reports uncertified minority business enterprises, women's business enterprises, and veteran owned small businesses. (6) Determine and define opportunities for minority, women's, and veteran owned business participation in contracts awarded by all state agencies, separate bodies corporate and politic, and state educational institutions. (7) Implement programs initiated by the commission under section 2 of this chapter. (8) Perform other duties as defined by the commission or by the commissioner. As added by P.L.34-1983, SEC.1. Amended by P.L.31-1993, SEC.2; P.L.195-2001, SEC.5; P.L.84-2004, SEC.3; P.L.228-2007, SEC.4; P.L.114-2010, SEC.5; P.L.15-2020, SEC.5; P.L.42-2024, SEC.33.

Ind. Code § 4-13-16.5-3.5 Veteran owned small business concern; rules; state contracting goals; procurement policies and procedures; reporting requirement

Sec. 3.5. (a) The department shall adopt rules under IC 4-22-2 to do the following: (1) Increase contracting opportunities for Indiana veteran owned small businesses described in section 1.5 of this chapter with a goal to procure in each state fiscal year at least three percent (3%) of state contracts with Indiana veteran owned small businesses. (2) Develop procurement policies and procedures to accomplish the goal described in subdivision (1), including guidelines to be followed by the department in conducting the department's procurement efforts. (3) Implement section 1.5 of this chapter. These procurement policies do not apply to a procurement of supplies and services to address immediate and serious government needs at a time of emergency, including a threat to the public health, welfare, or safety that may arise by reason of floods, epidemics, riots, acts of terrorism, major power failures, a threat proclaimed by the President of the United States or the governor, or a threat declared by the commissioner. (b) The department shall annually evaluate its progress in meeting the goal described in this section for the previous state fiscal year. After June 30 and before November 1 of each year, the department shall submit a report to the governor, the Indiana department of veterans' affairs, and the interim study committee on public safety and military affairs established by IC 2-5-1.3-4 and the legislative council in an electronic format under IC 5-14-6. The report must include: (1) the percentage goal obtained by the department during the previous state fiscal year; and (2) a summary of why the department failed to meet the goal and what actions are being taken by the department to meet the goal in the current state fiscal year. (c) The department shall post the report described in subsection (b) on the department's website not later than thirty (30) days after the report is submitted. The Indiana department of veterans' affairs shall post the report described in subsection (b) on the department's website not later than thirty (30) days after the report is submitted by the department. As added by P.L.15-2020, SEC.6. Amended by P.L.1-2025, SEC.19.

Ind. Code § 4-13-16.5-4 Determinations regarding goals; adoption of rules

Sec. 4. (a) Before January 1 of even-numbered years, the department shall determine whether, during the most recently completed two (2) year period ending the previous July 1, the goals set under section 2(g)(8) of this chapter have been met. (b) The department shall adopt rules under IC 4-22-2 to ensure that the goals set under section 2(g)(8) of this chapter are met. Expenditures with business enterprises that qualify as both a minority business enterprise and a women's business enterprise may be counted toward the attainment of the goal for either: (1) minority business enterprises; or (2) women's business enterprises; at the election made by the procurer of goods, services, or goods and services, but not both. As added by P.L.195-2001, SEC.6. Amended by P.L.41-2003, SEC.2; P.L.228-2007, SEC.5; P.L.3-2008, SEC.6; P.L.42-2024, SEC.34.

Ind. Code § 4-13-16.5-4.5 State educational institutions; submit report to the budget committee

Sec. 4.5. Notwithstanding any other reporting requirement under this chapter, each state educational institution shall annually submit to the budget committee the report required by the commission under this chapter not later than December 1 after the close of each state fiscal year regarding the state educational institution's progress in achieving the goals established under section 2 of this chapter for the use of minority business enterprises, women's business enterprises, and veteran owned small businesses as contractors. The budget committee shall review the report. As added by P.L.84-2020, SEC.1.

Ind. Code § 4-13-16.5-5 Rules

Sec. 5. The Indiana department of administration may adopt rules under IC 4-22-2 to implement this chapter. As added by P.L.31-1993, SEC.3.

Ind. Code § 4-13-16.5-6 Application of standards and certifications

Sec. 6. (a) Notwithstanding any other law, the standards developed under this chapter apply to the determination and certification of a business as a minority business enterprise or a women's business enterprise under any Indiana law. (b) Notwithstanding any other law, a certification of a business as a minority business enterprise or a women's business enterprise under this chapter satisfies any Indiana law providing for or requiring the certification of a business as a minority business enterprise or a women's business enterprise. As added by P.L.84-2004, SEC.4.

Ind. Code § 4-13-16.5-7 Confidentiality of applicant materials

Sec. 7. For purposes of IC 5-14-3, materials containing: (1) personal financial information; or (2) confidential business information; submitted by an applicant for certification as a minority business enterprise or a women's business enterprise are confidential. As added by P.L.84-2004, SEC.5.

Ind. Code § 4-13-16.5-8 Contractor notice to minority, women's, and veteran business enterprises

Sec. 8. (a) This section applies to a contractor whose offer designated minority business enterprises, women's business enterprises, or veteran owned small businesses to furnish any supplies or perform any work under the contract awarded to the contractor. (b) As used in this section, "contract" refers to any of the following: (1) A contract for the purchase of supplies by a state agency. (2) A contract for the performance of services for a state agency. (3) A public works contract (as defined in IC 4-13.6-1-14). (4) A contract to perform professional services (as defined in IC 4-13.6-1-11) in connection with a public works contract. (c) As used in this section, "contractor" refers to a person awarded a contract by a state agency. (d) As used in this section, "offer" means a response to a solicitation. The term includes a bid, proposal, and quote. (e) As used in this section, "solicitation" means the procedure by which a state agency invites persons to submit an offer to enter into a contract with the state agency. The term includes an invitation for bids, a request for proposals, and a request for quotes. (f) Before beginning work on a contract, a contractor shall do the following: (1) Notify in writing each minority business, women's business enterprise, and veteran owned small business designated in the contractor's offer that the contractor has been awarded the contract. (2) Give copies of each notification to the state agency that awarded the contract. (g) If a contractor fails to comply with subsection (f), the awarding state agency may consider the failure a breach of contract and do any of the following: (1) Cancel the contract. (2) Collect from the contractor all funds paid to the contractor under the contract. (3) Exercise any of the state's rights set out in the contract. (4) Use the failure as a basis for finding the contractor not responsible when awarding other contracts. As added by P.L.228-2007, SEC.6. Amended by P.L.15-2020, SEC.7.

Ind. Code § 4-13-16.5-9 Grievance procedures

Sec. 9. (a) The department shall adopt rules under IC 4-22-2 to establish procedures to resolve grievances arising under this chapter. (b) The rules may include informal procedures to resolve grievances. (c) The procedures established under the rules must provide for final resolution of grievances before either of the following: (1) A panel of three (3) commission members. A panel formed under this subdivision must consist of at least two (2) commission members described in section 2(a)(5) of this chapter. (2) The commission. However, if the commission acts to resolve a grievance under this subdivision, members of the commission described in section 2(a)(6) or 2(a)(7) of this chapter may not participate in the proceeding. (d) Final resolution of grievances arising under this chapter are subject to IC 4-21.5. As added by P.L.228-2007, SEC.7.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/4Fetched: 10/17/2026