Section 5-17-5-2 - Exemption; "good faith dispute" defined(a) Section 1 of this chapter does not apply to the following: (1) Interagency or intergovernmental transactions.(2) Amounts payable to employees or prospective employees of state agencies or political subdivisions as reimbursement for expenses.(3) Claims subject to a good faith dispute, if before the date of timely payment notice of the dispute is: (A) sent by certified mail;(B) personally delivered; or(C) sent in accordance with the procedure in the contract.(4) Contracts entered into before September 1, 1983.(5) Contracts related to highway or road construction, reconstruction, or maintenance, if: (A) the Indiana department of transportation authorizes partial progress payments under IC 8-23-9-14; and(B) each progress payment does not exceed five hundred dollars ($500).(6) Claims, contracts, or projects that are to be paid for exclusively with federal funds.(b) As used in subsection (a)(3), "good faith dispute" means:(1) a contention by the state or political subdivision that goods delivered or services rendered were: (A) of less quantity or quality than ordered or specified by contract;(C) installed improperly; or(2) any other reason giving cause for the withholding of payment by the state or political subdivision until such dispute is settled.As added by P.L. 59-1983, SEC.1. Amended by P.L. 52-1988, SEC.2; P.L. 18-1990, SEC.17.