Sec. 3. (a) A watershed development commission may give a preference to an Indiana business that submits a bid under this article in connection with a public works project if both of the following apply:
(1) An out-of-state business also submits a bid.
(2) The out-of-state business is a business from a state that gives public works preferences unfavorable to Indiana businesses.
(b) A watershed development commission shall establish criteria for determining the following:
(1) Whether a bidder qualifies as an Indiana business.
(2) Whether another state's public works preference is unfavorable to Indiana businesses.
(3) The method by which the preference for Indiana businesses is to be computed.
(c) The preference that a watershed development commission gives to an Indiana business over an out-of-state business under this section may not be more favorable to the Indiana business than the preference of the state of the out-of-state business is to that state's businesses.