County contract bill clears House committee

Following another amendment last week, a bill that would establish a process for county contracts has cleared committee.

State Rep. Matt Lehman’s Indiana House Bill 1158, which details procedures for county elected officials to enter into contracts, was amended again Thursday by the Senate Local Government Committee and then approved on a 10-0 vote.

The bill moved back to the full Senate for second reading and potential additional amendment Monday afternoon. If it passes on third reading in the Senate, it would move back to the House for consideration of the amended bill. (The original version of the bill passed the House 94-0.)

The version of the bill that was amended a week earlier called for all contracts being proposed for the county to enter into by elected officials to be submitted to the county auditor, who would then date stamp them and forward a copy to the president of the county commissioners and the county attorney. A 20-day period for review would follow. If the county executive finds the contract acceptable, it can move forward. If it is not found acceptable, it can be refused and returned to the elected officeholder with a written explanation. Once approved, all contracts would return to the auditor’s office and then posted onto Indiana Gateway, the collection platform for local units of government to submit required data to the State of Indiana.

The bill also requires that all contracts be entered into in the name of the county rather than the officeholder. The process applies to contracts that are necessary for officeholders to carry out their constitutional duty and for which funds are already appropriated.

Lehman (R-Berne), who represents the northern third of Jay County along with Adams and Wells counties, explained the latest amendment during Thursday’s Senate Local Government Committee meeting. The lone substantive change, he said, was to remove language that would have allowed the county attorney to halt a contract if they found potential additional liability.

“Every contract counties enter into will create some additional liability,” said Lehman. “We didn’t want that to be the thing that held up a contract.”

During a committee meeting Feb. 15, representatives from Indiana Sheriff’s Association and Indiana Auditor’s Association expressed concern about county attorneys, who are not elected, having the ability to stop such contracts.

In the updated legislation, county attorneys can only halt contracts if they find them to be in violation of state law or public purchasing or bidding laws.

The only question regarding the procedure required by the bill came from Sen. Dan Dernulc (R-Highland), who asked whether all contracts would go through county commissioners. Lehman confirmed that they would, but that elected officials empowered to do so would still have the ability to enter into a contract over the objection of commissioners if it abides by state law.

The legislation stems from a Lake County court case in which commissioners sued the sheriff over such contracts.

Also, Sen. Travis Holdman’s Senate Bill 58 to exempt specialty or gourmet markets with a restaurant permit from income requirements to sell carry-out alcohol cleared the House on third reading 89-2. The bill exempts such businesses from rules regarding their percentage of gross retail income that comes from the sale of alcoholic beverages. It defines a speciality or gourmet market as one that holds a beer retailer’s permit and wine retailer’s permit, sells miscellaneous specialty foods and does not sell automotive fuel.

Holdman (R-Markle), all of Jay, Blackford, Adams and Wells counties as well as part of Allen County, also saw his Senate Bill 4 pass through the House Ways and Means Committee. It was scheduled for second reading in the House on Monday afternoon. The bill he co-authored with Sens. Ryan Mishler (R-Mishawaka) and Sen. Chris Garten (R-Charlestown), addresses various fiscal issues, including a review every two years to identify dedicated funds that have not been used.