LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6174 NOTE PREPARED: Nov 14, 2023
BILL NUMBER: HB 1013 BILL AMENDED:
SUBJECT: Conservancy District Road Funding.
FIRST AUTHOR: Rep. Cherry BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill provides that if a conservancy district assumes responsibility in its
district plan for the road construction and maintenance of the public highways, bridges, and streets in the
conservancy district (eligible conservancy district), distributions from the Motor Vehicle Highway Account
(MVHA) to a county, city, or town that shares territory with the eligible conservancy district are
proportionately reduced and the amount of the reduction is instead distributed to the eligible conservancy
district. It also provides that if a county, city, or town shares territory with an eligible conservancy district,
distributions from the Local Road and Street Account are proportionately reduced and the amount of the
reduction is instead distributed to the eligible conservancy district.
The bill also provides that an eligible conservancy district may apply for a loan from the Distressed Road
Fund. It provides that an eligible conservancy district may apply for a matching grant from the Local Road
and Bridge Matching Grant Fund.
The bill also eliminates the Primary Highway System Special Account.
Effective Date: July 1, 2024.
Explanation of State Expenditures: The bill could increase the workload of the Indiana Department of
Transportation to determine factors necessary to compute MVHA and Local Road and Street Account
distributions to conservancy districts. Increases in workload are within INDOT’s routine administrative
function and are expected to be completed without additional resources.
The bill could also increase state expenditures from Distressed Road Fund loans to make additional loans
HB 1013 1 to qualifying conservancy districts. Ultimately any increase in loans from the Fund are expected to be repaid
by conservancy districts.
Explanation of State Revenues: The bill allows conservancy districts to apply for matching grant funds
from the Local Road and Bridge Matching Grant Fund (Fund). The maximum amount of grants INDOT can
issue from the Fund cannot exceed revenue received from the Gasoline Use Tax, Transportation and
Infrastructure Improvement Fee, and supplemental registration fees collected on electric and hybrid vehicles.
For FY 2023, the Local Road and Bridge Matching Grant Fund awarded approximately $186.6 M for local
projects and received approximately $244.9 M in revenue. To the extent this provision increases the number
of awards made from the Fund, state expenditures for matching grants could increase, but expenditures would
ultimately be restricted by total revenue received.
Explanation of Local Expenditures:
Explanation of Local Revenues: Under the bill, conservancy districts would become eligible entities to
receive distributions from the MVHA and the Local Road and Street Account. The bill will result in a
transfer of local road funding distributions to conservancy districts that maintain their own roads.
No distributions from these accounts are made directly to conservancy districts. It is not known how many
local units of government remit MVHA and Local Road and Street Account revenue to conservancy districts
that maintain their own roads. To the extent MVHA and Local Road and Street Account revenue will be
distributed to conservancy districts instead of local units of government, (1) local unit of government road
funding would decrease and (2) conservancy district road funding would increase.
There are 134 conservancy districts in the state.
State Agencies Affected: INDOT.
Local Agencies Affected: Local units with conservancy districts.
Information Sources: Bob Reynolds, Office of the State Auditor; Andrea Zimmerman, INDOT.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1013 2