Senate Bill 289 Summary

• Establishes a 15% price preference for state purchases from American businesses (those with principal place of business in the U.S., or majority payroll/employees in the U.S.).

• Changes Indiana business price preferences from a declining scale (5%, 3%, or 1% based on purchase amount) to fixed percentages: 15% preference for non-Indiana American businesses and 30% preference for non-American businesses.

• Requires state agencies to award contracts to the lowest responsive and responsible bidder if that bidder is an Indiana or qualifying bordering state business, regardless of price preference.

• Mandates businesses claiming preferences must state the claim in their bid and provide documentation including principal place of business location, payroll information, and employee citizenship/residency data.

• Becomes effective July 1, 2011, and applies only to contracts awarded by state agencies.