SB 226

           Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
    SENATE ENROLLED ACT No. 226
  AN ACT to amend the Indiana Code concerning state and local
administration.
    Be it enacted by the General Assembly of the State of Indiana:
   SECTION 1. IC 4-13-1.3-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 4. (a) The department
may do the following regarding purchasing and contracting by state
agencies:
     (1) Adopt rules under IC 4-22-2 necessary to implement IC 5-22.
     (2) Consider and decide matters of policy.
     (3) Enforce IC 5-22 and rules adopted under subdivision (1).
     (4) Implement category management for purchasing and
     contracting by state agencies.
   (b) The department may not adopt rules that affect the rights or
obligations of the state or of a contractor under a contract in existence
on the effective date of a rule.
   SECTION 2. IC 4-13-1.3-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 5. (a) With the consent
of the department, each state agency shall nominate a purchasing
representative from among its employees to the department. The
department may appoint the nominated employee as the purchasing
representative or request require another nomination.
   (b) The purchasing representative shall do the following:
     (1) Serve as a liaison between the state agency and the
     department.
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      (2) Prepare all forms that the department requires to be completed
      by the state agency.
   (c) If a state agency has branches, facilities, or institutions located
at multiple sites, the department may appoint a purchasing
representative for any or all of the sites.
   (d) The department shall provide training in purchasing procedures
for the purchasing representatives.
   (e) If a purchasing representative's actions are not satisfactory to the
department, the department may revoke the appointment of the
representative and require the state agency to nominate another
representative.
   (f) A state agency may not make purchases during any period during
which the state agency does not have a purchasing representative.
   SECTION 3. IC 5-22-8-3, AS AMENDED BY P.L.195-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) This section applies only if the purchasing
agent expects the purchase to be:
      (1) at least fifty thousand dollars ($50,000); and
      (2) not more than one hundred fifty thousand dollars ($150,000).
   (b) A purchasing agent may purchase supplies under this section by
inviting quotes from at least three (3) persons known to deal in the
lines or classes of supplies to be purchased.
   (c) The purchasing agent shall mail an invitation to quote to the
persons described in subsection (b) at least seven (7) days before the
time fixed for receiving quotes.
   (d) If the purchasing agent receives a satisfactory quote, the
purchasing agent shall award a contract to the lowest responsible and
responsive offeror for each line or class of supplies required.
   (e) The purchasing agent may reject all quotes.
   (f) If the purchasing agent does not receive a quote from a
responsible and responsive offeror, the purchasing agent may purchase
the supplies under IC 5-22-10-10.
   (g) A purchasing agent for a state agency must comply with
IC 5-35.7-7-3 when making a purchase under this section.
   (h) This section does not apply to a contract entered into by the
Indiana department of transportation for the construction, repair,
or maintenance of a highway, street, road, or bridge.
   SECTION 4. IC 5-35.7-4-2, AS ADDED BY P.L.182-2025,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. A contract between a state agency and a
contractor must contain the following provisions:
      (1) To the extent practicable, clearly defined scopes and success
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     metrics.
     (2) Liquidated damages or other remedies for missed deadlines or
     overages.
     (3) A requirement for either of the following, as determined by
     the department:
         (A) An independent third party review verifying that the
         parties to the contract performed their obligations under the
         contract in compliance with the terms of the contract.
         verification and validation under IC 5-35.7-4.5.
         (B) Other appropriate methods or means for verification and
         validation of the terms of the contract.
   SECTION 5. IC 5-35.7-4.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
   Chapter 4.5. Independent Verification and Validation Oversight
Program
   Sec. 1. As used in this chapter, "program" means the
independent verification and validation oversight program
established by the department under section 2 of this chapter.
   Sec. 2. Not later than June 30, 2026, the department shall
establish and maintain an independent verification and validation
oversight program to provide independent oversight of contracting
activities conducted by state agencies.
   Sec. 3. The program may review, assess, and issue required
changes and recommendations for contracts between state agencies
and contractors.
   SECTION 6. IC 5-35.7-8 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
   Chapter 8. Procurement and Purchasing Governance
   Sec. 1. This chapter applies to all state agencies.
   Sec. 2. (a) Beginning July 1, 2026, each state agency shall submit
an annual procurement and purchasing plan to the department
and the budget agency.
   (b) An annual procurement and purchasing plan required under
subsection (a) must include at least the following:
     (1) All requests for procurement the state agency anticipates
     to be solicited in the subsequent state fiscal year.
     (2) A strategy to complete contracts scheduled to expire in the
     subsequent state fiscal year.
     (3) Any other information required by the department.
   (c) An annual procurement and purchasing plan required under
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subsection (a) must align with the state agency's annual spending
plan submitted to the budget agency.
   Sec. 3. (a) Except as provided in subsection (b), a state agency
must complete any incomplete contracts that were scheduled to
expire in the previous biennium in a manner prescribed by the
department.
   (b) A state agency may apply to the department and the budget
agency to receive a waiver from the requirements in subsection (a).
   SECTION 7. IC 10-18-1-18, AS AMENDED BY P.L.17-2005,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 18. The commission may do the following:
     (1) Make and execute contracts and other instruments that may be
     required in connection with the erection and maintenance of a
     suitable structure or structures upon or within Memorial Place.
     (2) (1) Adopt rules for the following:
         (A) The proper management, government, and use of
         Memorial Place and the structures situated on Memorial Place.
         (B) The government of employees.
     (3) (2) Acquire by condemnation the right to limit the kind,
     character, and height of buildings upon and the use of real estate
     or buildings located within three hundred (300) feet of the outside
     boundaries.
     (4) (3) Adopt reasonable rules as are proper to limit the kind,
     character, and height of buildings located or erected within three
     hundred (300) feet of the outside boundaries of Memorial Place
     and the use of the buildings or real estate. A building constructed
     or maintained or business conducted in violation of any rule may
     be abated as a nuisance in an action begun and prosecuted by the
     commission.
     (5) (4) Receive donations, gifts, devises, and bequests and use
     them in connection with the purposes of this chapter.
     (6) (5) Establish a nonprofit corporation to do the following:
         (A) Promote public support for the purposes of the
         commission and this chapter.
         (B) Preserve and promote the historical and educational
         activities of the commission.
         (C) Operate for the benefit of the purposes of the commission
         and this chapter.
     The corporation is subject to audit by the state board of accounts
     as if it were a state agency.
     (7) (6) Transfer money donated to the commission for the
     purposes described in subdivision (6) (5) to a corporation
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      established under subdivision (6). (5).
      (8) (7) Transfer:
          (A) artifacts;
          (B) images; or
          (C) documents of cultural heritage, historical, or museum
          relevance;
      under the commission's control to a corporation established under
      subdivision (6) (5) without complying with IC 5-22-21 and
      IC 5-22-22.
    SECTION 8. IC 10-18-1-26 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 26. (a) The
commission may do the following:
      (1) Make or sell the following:
          (A) Pictures, models, books, and other representations of the
          monuments and grounds.
          (B) Souvenirs.
      (2) Establish and maintain souvenir shops on property that the
      commission manages.
      (3) Hire and pay salaries for full-time or part-time employees for
      the souvenir shops.
      (4) Contract with a nonprofit organization or corporation for the
      continuous management of the souvenir shops.
      (5) (4) Report annually to the governor on the activities, revenues,
      expenditures, and profits of the souvenir shops.
    (b) Notwithstanding section 27 of this chapter, the following apply
to the profits from souvenir shop sales:
      (1) The souvenir shop fund is established. The souvenir shop fund
      shall be administered by the commission.
      (2) Profits from the sales at souvenir shops established under
      subsection (a) shall be deposited in the souvenir shop fund.
      (3) The treasurer of state shall invest the money in the souvenir
      shop fund not currently needed to meet the obligations of the fund
      in the same manner as other public funds may be invested.
      (4) The expenses of administering the souvenir shop fund shall be
      paid from money in the fund.
      (5) The commission may spend the money in the souvenir shop
      fund for the following purposes:
          (A) Maintenance or repair of properties managed by the
          commission.
          (B) Maintenance, repair, and acquisition of the following:
            (i) Battle flags.
            (ii) Appropriate artifacts.
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            (iii) Appropriate memorabilia.
      (6) All money accruing to the souvenir shop fund is appropriated
      continuously for the purposes listed in subdivision (5).
      (7) Money in the souvenir shop fund at the end of a state fiscal
      year does not revert to the state general fund.
    (c) A person may not make or sell pictures, models, books, or other
representations of the monuments or grounds unless the person is
authorized to do so by the commission.
    SECTION 9. IC 10-18-1-30 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 30. (a) The commission may not enter into a contract
for:
      (1) the purchase or sale of property, material, or supplies; or
      (2) the performance of work or labor, except for salaries of
      employees;
if the work and labor or materials and supplies cost more than ten
thousand dollars ($10,000) without first giving notice of its intention
to purchase or sell the materials or supplies or to contract for the work
or labor by publication in a newspaper of general circulation printed
and published in the English language in Indianapolis for two (2)
successive weeks before the time fixed for the letting of the contract or
the sale of the property.
    (b) A contract under this section must be in writing. The other
contracting party shall furnish bond for the faithful performance of the
contract in an amount fixed by the commission and with surety to the
commission's approval, conditioned upon the faithful performance of
the contract. However, if the commission decides to purchase a
patented article or material or an article or material of a special type,
character, or design of construction or make that may be purchased
from only one (1) person, firm, limited liability company, or
corporation, their agents or representatives, or for which there is a
fixed, standard price, the commission is not required to take or receive
competitive bids. However, the commission shall publish in the manner
set forth under subsection (a) the number and character of the article
or kind and quality of material proposed to be purchased, the unit price,
and the total sum to be paid.
    (c) A contract made in violation of this section is void.
    SECTION 10. An emergency is declared for this act.
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President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date:  Time:
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