IndianaSB 5First Regular Session 124th General Assembly (2025)Senate

State fiscal and contracting matters.

Sponsored By: Scott Baldwin (Republican)

Signed by Governor

Summary

Allows a state agency to use artificial intelligence software to prepare information and projections for the state budget. Requires a state agency to provide a quarterly report to the budget committee that details the requests submitted by the state agency for new federal funds or to participate in a new federal program. Provides that, in addition to the quarterly reports, a state agency may not immediately accept an award of new federal funds in certain circumstances or participate in a new federal program before a report has been reviewed by the budget committee. Specifies the contents of the report that must be submitted for budget committee review. Requires a state agency to provide the state comptroller with a contract for inclusion in the Indiana transparency website not later than 30 days after the contract is fully executed. Requires that permanent full-time positions which have been vacant for 90 days or more be reviewed and either reauthorized or eliminated by the budget director. Requires the budget director to provide a quarterly report to the governor's office regarding those positions that were reauthorized or eliminated by the budget director in the preceding three months. Requires a state agency to provide quarterly reports to the budget committee regarding the state agency's active contracts. Provides for the reversion of funds appropriated to a state agency for expenses related to a contract that are unused after the end of the contract term. Requires the department of administration (department) to develop certain contract language to be included in state contracts of $500,000 or more. Requires a state agency to provide a report to the budget committee concerning amendments to a contract that: (1) increase the maximum contract amount by not less than $500,000; or (2) for a contract with an initial maximum contract amount of not less than $500,000, extend the term of the contract by not less than six months. Prohibits a state agency from entering into a nonpublic contract. Requires all contract opportunities of state agencies to be posted in the form of a request for proposals or a request for quotations on the department's website at least 30 days prior to the contract being awarded. Requires the office of the secretary of family and social services and the office of Medicaid policy and planning to do the following: (1) Review monthly reports on the Medicaid program service utilization to identify trends and risks within the state Medicaid program. (2) Post publicly on the office of the secretary of family and social services's website monthly financial reports or expenditures and revenues for each state Medicaid program and commentary providing context for each monthly financial report. (3) Submit a quarterly report to the budget committee.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 3 costs, 0 mixed.

Easier public access to state contracts

Beginning July 1, 2025, agencies must send contracts covered by transparency rules to the Department of Administration within 30 days of full signing. Posted contracts must be downloadable, with search results available as accessible spreadsheets without row limits. Active contracts using state-appropriated money—including state, federal, or dedicated funds—must reach the Budget Agency and department within 30 days. These contracts go on the state transparency portal. By June 1, 2026, and each June 1 afterward, the Budget Agency must report on contracts submitted during the prior calendar year.

More public bidding for state contracts

State agencies must post covered contract opportunities on the Department of Administration’s website at least 30 days before award. Agencies generally cannot award contracts without seeking proposals or using competitive purchasing, subject to other legal requirements. Posting exceptions include licensed legal counsel, agency-policy small purchases, specified state treasurer services, and the program under IC 11-10-7-2. Exceptions to the nonpublic-contract ban also include purchases under IC 5-22-10, emergency contracts under IC 4-13.6-5-5, and agreements under IC 31-25-4-13.1.

Stronger safeguards for large state contracts

Covered state contracts with an original maximum value of at least $500,000 must include performance safeguards. This applies to contracts entered into, renewed, or amended after June 30, 2026. Where practical, contracts must set clear work goals and success measures, with remedies for missed deadlines or cost overruns. They must also require independent performance review or another suitable way to check results. Exceptions cover specified transportation construction, repair, and maintenance contracts and legal-services contracts supporting the attorney general’s duties.

Agencies lose unused contract spending authority

This rule applies to state fiscal years beginning July 1, 2025, or later. Agencies lose access to appropriated contract money still unused 90 days after the contract term ends. The money returns to its original fund on the following June 30. Another law can provide an exception.

State agencies face federal funding reviews

Beginning July 1, 2025, covered agencies face budget committee review before accepting certain new federal funds or joining new programs. The review applies when participation requires state matching money, more permanent full-time staff, or new state requirements. New funds include federal aid Indiana does not currently receive and programs it does not currently join. Agencies report requests quarterly, including federal amounts, new state costs, added staff, funding conditions, and their applications. Requests under nondisclosure agreements protecting confidential or proprietary business information are exempt from reporting.

New reviews before filling state jobs

Beginning July 1, 2025, permanent full-time state jobs vacant for at least 90 days need budget director approval before filling. At the budget director’s request, the civil-service director must review those jobs and either reclassify or eliminate them. Reclassification must reflect the job’s current duties. The budget director reports vacancy reviews to the governor by January 1, April 1, July 1, and October 1.

Sponsors & Cosponsors

Sponsor

  • Scott Baldwin

    Republican • Senate

Cosponsors

  • Aaron Freeman

    Republican • Senate

  • Andy Zay

    Affiliation unavailable

  • Blake Doriot

    Republican • Senate

  • Brett Clark

    Republican • Senate

  • Brian Buchanan

    Republican • Senate

  • Chris Garten

    Republican • Senate

  • Craig Snow

    Republican • House

  • Cyndi Carrasco

    Republican • Senate

  • Dan Dernulc

    Republican • Senate

  • Danny Lopez

    Republican • House

  • Daryl Schmitt

    Republican • Senate

  • David Niezgodski

    Democratic • Senate

  • Eric Bassler

    Republican • Senate

  • Eric Koch

    Republican • Senate

  • Gary Byrne

    Republican • Senate

  • Greg Goode

    Republican • Senate

  • Greg Walker

    Republican • Senate

  • James Buck

    Republican • Senate

  • James Tomes

    Republican • Senate

  • Jean Leising

    Republican • Senate

  • Jeff Raatz

    Republican • Senate

  • Justin Busch

    Republican • Senate

  • Kyle Walker

    Republican • Senate

  • Lonnie Randolph

    Democratic • Senate

  • Matt Lehman

    Republican • House

  • Michael Young

    Republican • Senate

  • Mike Bohacek

    Republican • Senate

  • Mike Gaskill

    Republican • Senate

  • Randy Maxwell

    Republican • Senate

  • Ron Alting

    Republican • Senate

  • Ryan Mishler

    Republican • Senate

  • Scott Alexander

    Republican • Senate

  • Spencer Deery

    Republican • Senate

  • Stacey Donato

    Republican • Senate

  • Susan Glick

    Republican • Senate

  • Travis Holdman

    Republican • Senate

  • Tyler Johnson

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 475 • No: 87

House vote • 4/23/2025

Rules Suspended. Conference Committee Report 1: adopted by the House

Yes: 90 • No: 1

Senate vote • 4/23/2025

Conference Committee Report 1: adopted by the Senate

Yes: 48 • No: 0

House vote • 4/8/2025

Third reading: passed

Yes: 92 • No: 1

House vote • 4/7/2025

Amendment #5 (Lehman) prevailed

Yes: 68 • No: 27

House vote • 4/7/2025

Appeal the ruling of the chair (Porter); ruling of the chair sustained

Yes: 63 • No: 28

House vote • 4/7/2025

Amendment #2 (Lopez) prevailed

Yes: 65 • No: 30

Senate vote • 1/28/2025

Third reading: passed

Yes: 49 • No: 0

Actions Timeline

  1. Signed by the Governor

    5/6/2025Senate
  2. Public Law 182

    5/6/2025Senate
  3. Signed by the President of the Senate

    4/29/2025Senate
  4. Signed by the President Pro Tempore

    4/24/2025Senate
  5. Signed by the Speaker

    4/24/2025House
  6. Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 524: yeas 90, nays 1

    4/23/2025House
  7. Conference Committee Report 1: adopted by the Senate; Roll Call 488: yeas 48, nays 0

    4/23/2025Senate
  8. CCR # 1 filed in the Senate

    4/22/2025Senate
  9. CCR # 1 filed in the House

    4/22/2025House
  10. Senate conferees appointed: Baldwin and Niezgodski

    4/14/2025Senate
  11. Senate advisors appointed: Pol and Garten

    4/14/2025Senate
  12. House advisors appointed: Snow, Lopez and Porter

    4/14/2025House
  13. House conferees appointed: Lehman and DeLaney

    4/14/2025House
  14. Senate dissented from House amendments

    4/10/2025Senate
  15. Returned to the Senate with amendments

    4/9/2025House
  16. Motion to dissent filed

    4/9/2025Senate
  17. Third reading: passed; Roll Call 388: yeas 92, nays 1

    4/8/2025House
  18. Amendment #5 (Lehman) prevailed; Roll Call 383: yeas 68, nays 27

    4/7/2025House
  19. Amendment #1 (Porter) ruled out of order

    4/7/2025House
  20. Second reading: amended, ordered engrossed

    4/7/2025House
  21. Amendment #2 (Lopez) prevailed; Roll Call 385: yeas 65, nays 30

    4/7/2025House
  22. Appeal the ruling of the chair (Porter); ruling of the chair sustained Roll Call 384: yeas 63, nays 28

    4/7/2025House
  23. Committee report: amend do pass, adopted

    3/27/2025House
  24. Representative Lopez added as cosponsor

    3/20/2025House
  25. First reading: referred to Committee on Ways and Means

    3/3/2025House

Bill Text

  • Engrossed Senate Bill (S)

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

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