Introduced Version HOUSE BILL No. 1013 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 8-14; IC 8-23; IC 9-13-2-173.3; IC 36-3-7-7; IC 36-9-42.2-4.5. Synopsis: Conservancy district road funding. 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 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. 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. Provides that an eligible conservancy district may apply for a loan from the distressed road fund. Provides that an eligible conservancy district may apply for a matching grant from the local road and bridge matching grant fund. Eliminates the primary highway system special account. Effective: July 1, 2024. Cherry January 8, 2024, read first time and referred to Committee on Roads and Transportation. 2024 IN 1013—LS 6174/DI 116 Introduced Second Regular Session of the 123rd General Assembly (2024) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2023 Regular Session of the General Assembly. HOUSE BILL No. 1013 A BILL FOR AN ACT to amend the Indiana Code concerning transportation. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 8-14-1-3, AS AMENDED BY THE TECHNICAL 2 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS 3 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]: 4 Sec. 3. (a) The money collected for the motor vehicle highway account 5 fund and remaining after refunds and the payment of all expenses 6 incurred in the collection of the money and after transferring three 7 hundred twenty-five thousand dollars ($325,000) each month to the 8 motor carrier regulation fund (IC 8-2.1-23), shall be allocated to and 9 distributed among the department and subdivisions designated as 10 follows: 11 (1) Of the net amount in the motor vehicle highway account the 12 auditor of state comptroller shall set aside for the cities and 13 towns of the state twelve and thirteen hundredths percent 14 (12.13%). This sum shall be allocated to the cities and towns 15 upon the basis that the population of each city and town bears to 16 the total population of all the cities and towns and shall be used 17 for the construction or reconstruction and maintenance of streets 2024 IN 1013—LS 6174/DI 116 2 1 and alleys and shall be annually budgeted as now provided by 2 law. However, no part of such sum shall be used for any other 3 purpose than for the purposes defined in this chapter. If any funds 4 allocated to any city or town shall be used by any officer or 5 officers of such city or town for any purpose or purposes other 6 than for the purposes as defined in this chapter, such officer or 7 officers shall be liable upon their official bonds to such city or 8 town in such amount so used for other purposes than for the 9 purposes as defined in this chapter, together with the costs of said 10 action and reasonable attorney fees, recoverable in an action or 11 suit instituted in the name of the state of Indiana on the relation 12 of any taxpayer or taxpayers resident of such city or town. A 13 monthly distribution thereof of funds accumulated during the 14 preceding month shall be made by the auditor of state 15 comptroller. 16 (2) Of the net amount in the motor vehicle highway account, the 17 auditor of state comptroller shall set aside for the counties of the 18 state twenty-five and eighty-seven hundredths percent (25.87%). 19 However, as to the allocation to cities and towns under 20 subdivision (1) and as to the allocation to counties under this 21 subdivision, in the event that the amount in the motor vehicle 22 highway account fund remaining after refunds and after the 23 payment of all expenses incurred in the collection thereof is less 24 than twenty-two million six hundred fifty thousand dollars 25 ($22,650,000) in any fiscal year, then the amount so set aside in 26 the next calendar year for distributions to counties shall be 27 reduced fifty-four percent (54%) of such deficit and the amount 28 so set aside for distribution in the next calendar year to cities and 29 towns shall be reduced thirteen percent (13%) of such deficit. 30 Such reduced distributions shall begin with the distribution 31 January 1 of each year. 32 (3) The amount set aside for the counties of the state under the 33 provisions of subdivision (2) shall be allocated monthly upon the 34 following basis: 35 (A) Five percent (5%) of the amount allocated to the counties 36 to be divided equally among the ninety-two (92) counties. 37 (B) Sixty-five percent (65%) of the amount allocated to the 38 counties to be divided on the basis of the ratio of the actual 39 miles, now traveled and in use, of county roads in each county 40 to the total mileage of county roads in the state, which shall be 41 annually determined, accurately, by the department and 42 submitted to the auditor of state comptroller before April 1 of 2024 IN 1013—LS 6174/DI 116 3 1 each year. 2 (C) Thirty percent (30%) of the amount allocated to the 3 counties to be divided on the basis of the ratio of the motor 4 vehicle registrations of each county to the total motor vehicle 5 registration of the state. The bureau of motor vehicles shall 6 annually determine the amount under this clause and submit 7 its determination to the auditor of state comptroller before 8 April 1 each year. 9 All money so distributed to the several counties of the state shall 10 constitute a special road fund for each of the respective counties 11 and shall be under the exclusive supervision and direction of the 12 board of county commissioners in the construction, 13 reconstruction, maintenance, or repair of the county highways or 14 bridges on such county highways within such county. 15 (4) Each month the remainder of the net amount in the motor 16 vehicle highway account shall be credited to the state highway 17 fund for the use of the department. 18 (5) Money in the fund may not be used for any toll road or toll 19 bridge project. 20 (6) Notwithstanding any other provisions of this section, money 21 in the motor vehicle highway account fund may be appropriated 22 to the Indiana department of transportation from the amounts 23 distributed to the political subdivisions of the state to pay the 24 costs incurred by the department in providing services to those 25 subdivisions. 26 (7) Notwithstanding any other provisions of this section or of 27 IC 8-14-8, for the purpose of maintaining a sufficient working 28 balance in accounts established primarily to facilitate the 29 matching of federal and local money for highway projects, money 30 may be appropriated to the Indiana department of transportation 31 as follows: 32 (A) One-half (1/2) from the amounts set aside under 33 subdivisions (1) and (2) for counties and for those cities and 34 towns with a population greater than five thousand (5,000). 35 (B) One-half (1/2) from the distressed road fund under 36 IC 8-14-8. 37 (b) If a conservancy district established under IC 14-33 includes 38 any part of the territory of a city or town and the conservancy 39 district has assumed responsibility in the district plan for the 40 construction, reconstruction, and maintenance of the streets and 41 alleys within the conservancy district, the amount allocated to the 42 city or town under subsection (a)(1) shall be reduced by an amount 2024 IN 1013—LS 6174/DI 116 4 1 that bears the same ratio to the amount allocated to the city or 2 town under subsection (a)(1) as the population in the territory 3 shared by the conservancy district and the city or town bears to the 4 population of the city or town. The department shall determine the 5 population shared by the conservancy district and the city or town. 6 The amount of the reduction determined under this subsection 7 shall be allocated instead to the conservancy district. The amount 8 allocated to a conservancy district under this subsection shall be 9 used for the construction or reconstruction and maintenance of 10 streets and alleys in the territory shared between the conservancy 11 district and the city or town and shall be annually budgeted as now 12 provided by law. However, no part of the amount allocated to the 13 conservancy district shall be used for any other purpose than for 14 the purposes defined in this chapter. If any funds allocated to any 15 conservancy district shall be used by any officer or officers of the 16 conservancy district for any purpose or purposes other than for the 17 purposes as defined in this chapter, the officer or officers shall be 18 liable upon their official bonds to the conservancy district for the 19 amount so used for other purposes than for the purposes as defined 20 in this chapter, together with the costs of the action and reasonable 21 attorney's fees, recoverable in an action or suit instituted in the 22 name of the state of Indiana on the relation of any taxpayer or 23 taxpayers resident of the conservancy district. The state 24 comptroller shall make a monthly distribution of the amount that 25 is determined under this subsection and accumulated during the 26 preceding month to the conservancy district. The restrictions in 27 section 5 of this chapter apply to the use of money distributed to a 28 conservancy district under this subsection. 29 (c) If a conservancy district established under IC 14-33 includes 30 unincorporated territory of a county and the conservancy district 31 has assumed responsibility in the district plan for the construction, 32 reconstruction, maintenance, or repair of the county highways or 33 bridges on the county highways within the conservancy district, the 34 amount allocated to the county under subsection (a)(3) shall be 35 reduced by the sum of the following: 36 (1) The amount that bears the same ratio to the amount 37 allocated to the county under subsection (a)(3)(A) as the 38 unincorporated area of the conservancy district in the county 39 bears to the area of the county. The department shall annually 40 determine the unincorporated area of the conservancy district 41 in the county and submit its determination to the state 42 comptroller before April 1 each year. 2024 IN 1013—LS 6174/DI 116 5 1 (2) The amount that bears the same ratio to the amount 2 allocated to the county under subsection (a)(3)(B) as the 3 actual miles, now traveled and in use, of county roads in the 4 conservancy district bears to the actual miles, now traveled 5 and in use, of county roads in the county. The actual miles, 6 now traveled and in use, of the county roads in the 7 conservancy district, shall be annually determined, 8 accurately, and submitted to the state comptroller before 9 April 1 each year. 10 (3) The amount that bears the same ratio to the amount 11 allocated to the county under subsection (a)(3)(C) as the 12 motor vehicle registrations of the unincorporated area of the 13 conservancy district in the county bears to the motor vehicle 14 registrations of the county. The bureau of motor vehicles shall 15 annually determine the amount under this subdivision and 16 submit its determination to the state comptroller before April 17 1 each year. 18 The amount of the reduction determined under this subsection 19 shall be allocated instead to the conservancy district. All money 20 distributed to a conservancy district under this subsection shall 21 constitute a special road fund for the conservancy district and shall 22 be under the exclusive supervision and direction of the board of 23 directors of the conservancy district in the construction, 24 reconstruction, maintenance, or repair of the county highways or 25 bridges on the county highways within the conservancy district. 26 The restrictions in section 4 of this chapter apply to the use of 27 money distributed to a conservancy district under this subsection. 28 SECTION 2. IC 8-14-1-11, AS AMENDED BY THE TECHNICAL 29 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS 30 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]: 31 Sec. 11. (a) The department may create a local agency revolving fund 32 from money appropriated under section 3(7) 3(a)(7) of this chapter for 33 the purpose of maintaining a sufficient working balance in accounts 34 established primarily to facilitate the matching of federal and local 35 money for highway projects. 36 (b) The revolving fund balance must be maintained through 37 reimbursement from a local unit for money used by that unit to match 38 federal funds. 39 (c) If the local unit fails to reimburse the revolving fund, the 40 department shall notify the local unit that the department has found the 41 outstanding accounts receivable to be uncollectible. 42 (d) The attorney general shall review the outstanding accounts 2024 IN 1013—LS 6174/DI 116 6 1 receivable and if the attorney general agrees with the department's 2 assessment of the account's status, the attorney general shall certify to 3 the auditor of state comptroller that the outstanding accounts 4 receivable is uncollectible and request a transfer of funds as provided 5 in subsection (e). 6 (e) Upon receipt of a certificate as specified in subsection (d), the 7 auditor of state comptroller shall: 8 (1) immediately notify the delinquent local unit of the claim; and 9 (2) if proof of payment is not furnished to the auditor of state 10 comptroller within thirty (30) days after the notification, transfer 11 an amount equal to the outstanding accounts receivable to the 12 department from the delinquent local unit's allocations from the 13 motor vehicle highway account for deposit in the local agency 14 revolving fund. 15 (f) Transfers shall be made under subsection (e) until the unpaid 16 amount has been paid in full under the terms of the agreement. 17 However, the agreement may be amended if both the department and 18 the unit agree to amortize the transfer over a period not to exceed five 19 (5) years. 20 (g) Money in the fund at the end of a fiscal year does not revert to 21 the state general fund. 22 SECTION 3. IC 8-14-2-1 IS AMENDED TO READ AS FOLLOWS 23 [EFFECTIVE JULY 1, 2024]: Sec. 1. As used in The following 24 definitions apply throughout this chapter: 25 (1) Primary highway system special account means the account of 26 the state known as the "primary highway system special account" 27 to which is credited monthly fifty-five percent (55%) of the 28 money deposited in the highway, road and street fund. 29 (2) Local road and street account means the account of the state 30 known as the "local road and street account" to which is credited 31 monthly forty-five percent (45%) of the money deposited in the 32 highway, road and street fund. 33 (3) The term "department" refers to the Indiana department of 34 transportation created under IC 8-23-2. 35 (4) The term "primary highways" shall mean that portion of the 36 federal-aid highway system designated by the department and 37 approved by the United States department of transportation as 38 being the state "primary highway system". 39 (5) The term "construction" shall mean both construction and 40 reconstruction to a degree that new, supplementary, or 41 substantially improved traffic service is provided, and significant 42 geometric or structural improvements are effected. 2024 IN 1013—LS 6174/DI 116 7 1 (6) (1) "Arterial road system" shall mean means the system of 2 roads including bridges in each county of Indiana, under the 3 jurisdiction of the board of county commissioners, or successor 4 body, including a department of transportation of a consolidated 5 city, designated as such by the board under IC 8-23-4-3, but not 6 including local county roads. 7 (2) "Arterial street system" means the system of streets, 8 including bridges in each city or town in Indiana, under the 9 jurisdiction of municipal street authorities or successor 10 bodies, including a department of transportation of a 11 consolidated city, designated as such by the board under 12 IC 8-23-4-4, but not including local streets. 13 (3) "Construction" means both construction and 14 reconstruction to a degree that new, supplementary, or 15 substantially improved traffic service is provided, and 16 significant geometric or structural improvements are effected. 17 (4) "Department" refers to the Indiana department of 18 transportation established under IC 8-23-2. 19 (5) "Eligible conservancy district" means a conservancy 20 district that is eligible to receive a distribution from the motor 21 vehicle highway account under IC 8-14-1-3. 22 (7) (6) "Local county roads" shall mean means all county roads 23 and bridges which are not designated as being in the arterial road 24 system. 25 (8) "Arterial street system" means the system of streets, including 26 bridges in each city or town in Indiana, under the jurisdiction of 27 municipal street authorities or successor bodies, including a 28 department of transportation of a consolidated city, designated as 29 such by the board under IC 8-23-4-4, but not including local 30 streets. 31 (7) Local road and street account means the account of the 32 state known as the "local road and street account" to which 33 is credited monthly thirty-seven percent (37%) of the money 34 deposited in the highway, road and street fund. 35 (9) (8) "Local streets" shall mean means all city and town streets 36 and bridges which are not designated as being in the arterial street 37 system in each city or town. 38 (9) "Primary highways" means that portion of the federal aid 39 highway system designated by the department and approved 40 by the United States Department of Transportation as being 41 the state "primary highway system". 42 (10) "Resurfacing" means the placement of additional pavement 2024 IN 1013—LS 6174/DI 116 8 1 layers (including protective systems for bridge decks) over the 2 existing (or restored or rehabilitated) roadway or bridge deck 3 surface to provide additional strength or to improve serviceability 4 for a substantial time period. 5 (11) (10) "Restoration and rehabilitation" means work required to 6 return the existing structure (roadway pavement or bridge deck) 7 to a suitable condition for an additional stage of construction 8 (bridge deck protective system or resurfacing) or to a suitable 9 condition to perform satisfactorily for a substantial time period. 10 (11) "Resurfacing" means the placement of additional 11 pavement layers (including protective systems for bridge 12 decks) over the existing (or restored or rehabilitated) roadway 13 or bridge deck surface to provide additional strength or to 14 improve serviceability for a substantial time period. 15 SECTION 4. IC 8-14-2-2 IS AMENDED TO READ AS FOLLOWS 16 [EFFECTIVE JULY 1, 2024]: Sec. 2. It is hereby declared to be the 17 intent of the general assembly that the monies deposited under this 18 chapter in the primary highway system special account state highway 19 fund and the local road and street account shall be used exclusively for 20 engineering, land acquisition, construction, resurfacing, restoration, 21 and rehabilitation of highway facilities. 22 SECTION 5. IC 8-14-2-4, AS AMENDED BY THE TECHNICAL 23 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS 24 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2024]: 25 Sec. 4. (a) The auditor of state comptroller shall establish a special 26 account to be called the "local road and street account" and credit this 27 account monthly with thirty-seven percent (37%) of the money 28 deposited in the highway, road and street fund. 29 (b) The auditor state comptroller shall distribute to units of local 30 government money from this account each month. Before making any 31 other distributions under this chapter, the auditor shall distribute E85 32 incentive payments to all political subdivisions entitled to a payment 33 under section 8 of this chapter. 34 (c) After distributing E85 incentive payments required under section 35 8 of this chapter, The auditor of state comptroller shall allocate to each 36 county the remaining money in this account on the basis of the ratio of 37 each county's passenger car registrations to the total passenger car 38 registrations of the state. The auditor state comptroller shall further 39 determine the suballocation between the county and the cities within 40 the county as follows: 41 (1) In counties having a population of more than fifty thousand 42 (50,000), sixty percent (60%) of the money shall be distributed on 2024 IN 1013—LS 6174/DI 116 9 1 the basis of the population of the city or town as a percentage of 2 the total population of the county and forty percent (40%) 3 distributed on the basis of the ratio of city and town street mileage 4 to county road mileage. 5 (2) In counties having a population of fifty thousand (50,000) or 6 less, twenty percent (20%) of the money shall be distributed on 7 the basis of the population of the city or town as a percentage of 8 the total population of the county and eighty percent (80%) 9 distributed on the basis of the ratio of city and town street mileage 10 to county road mileage. 11 (3) For the purposes of allocating funds as provided in this 12 section, towns which become incorporated as a town between the 13 effective dates of decennial censuses shall be eligible for 14 allocations upon the effectiveness of a corrected population count 15 for the town under IC 1-1-3.5. 16 (4) Money allocated under the provisions of this section to 17 counties containing a consolidated city shall be credited or 18 allocated to the department of transportation of the consolidated 19 city. 20 (d) If an eligible conservancy district includes any 21 unincorporated area in a county to which subsection (c)(1) applies, 22 the county's allocation under subsection (c)(1) shall be reduced by 23 the sum of: 24 (1) an amount that bears the same ratio to sixty percent 25 (60%) of the county's allocation under subsection (c)(1) as the 26 population of the unincorporated area of the eligible 27 conservancy district in the county bears to the population of 28 the unincorporated area of the county; and 29 (2) an amount that bears the same ratio to forty percent 30 (40%) of the county's allocation under subsection (c)(1) as the 31 county road mileage in the unincorporated area of the eligible 32 conservancy district bears to the county road mileage of the 33 unincorporated area of the county. 34 The amount of the reduction of the county's allocation determined 35 under this subsection shall be allocated instead to the eligible 36 conservancy district. 37 (e) If an eligible conservancy district includes any 38 unincorporated area in a county to which subsection (c)(2) applies, 39 the county's allocation under subsection (c)(2) shall be reduced by 40 the sum of: 41 (1) an amount that bears the same ratio to twenty percent 42 (20%) of the county's allocation under subsection (c)(2) as the 2024 IN 1013—LS 6174/DI 116 10 1 population of the unincorporated area of the eligible 2 conservancy district in the county bears to the population of 3 the unincorporated area of the county; and 4 (2) an amount that bears the same ratio to eighty percent 5 (80%) of the county's allocation under subsection (c)(2) as the 6 county road mileage in the unincorporated area of the eligible 7 conservancy district bears to the county road mileage of the 8 unincorporated area of the county. 9 The amount of the reduction of the county's allocation determined 10 under this subsection shall be allocated instead to the eligible 11 conservancy district. 12 (f) If an eligible conservancy district includes any area of a city 13 or town to which subsection (c)(1) applies, the city's or town's 14 allocation under subsection (c)(1) shall be reduced by the sum of: 15 (1) an amount that bears the same ratio to sixty percent 16 (60%) of the city's or town's allocation under subsection (c)(1) 17 as the population of the area shared by the eligible 18 conservancy district and the city or town bears to the 19 population of the city or town; and 20 (2) an amount that bears the same ratio to forty percent 21 (40%) of the city's or town's allocation under subsection (c)(1) 22 as the street mileage in the area shared by the eligible 23 conservancy district and the city or town bears to the street 24 mileage of the city or town. 25 The amount of the reduction of the city's or town's allocation 26 determined under this subsection shall be allocated instead to the 27 eligible conservancy district. 28 (g) If an eligible conservancy district includes any area of a city 29 or town to which subsection (c)(2) applies, the city's or town's 30 allocation under subsection (c)(2) shall be reduced by the sum of: 31 (1) an amount that bears the same ratio to twenty percent 32 (20%) of the city's or town's allocation under subsection (c)(2) 33 as the population of the area shared by the eligible 34 conservancy district and the city or town bears to the 35 population of the city or town; and 36 (2) an amount that bears the same ratio to eighty percent 37 (80%) of the city's or town's allocation under subsection (c)(2) 38 as the street mileage in the area shared by the eligible 39 conservancy district and the city or town bears to the street 40 mileage of the city or town. 41 The amount of the reduction of the city's or town's allocation 42 determined under this subsection shall be allocated instead to the 2024 IN 1013—LS 6174/DI 116 11 1 eligible conservancy district. 2 (d) (h) Each month the auditor of state comptroller shall inform the 3 department of the amounts allocated to each unit of local government 4 from the local road and street account. 5 SECTION 6. IC 8-14-8-1 IS AMENDED TO READ AS FOLLOWS 6 [EFFECTIVE JULY 1, 2024]: Sec. 1. The intent of this chapter is to 7 create a method of providing financial assistance to counties, cities, 8 and towns, and eligible conservancy districts (referred to as "units" 9 in this chapter) which have serious road and street deficiencies. This 10 chapter has the purpose of enhancing public safety and ensuring the 11 free flow of commerce. 12 SECTION 7. IC 8-14-8-3, AS AMENDED BY P.L.104-2022, 13 SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 14 JULY 1, 2024]: Sec. 3. For purposes of The following definitions 15 apply throughout this chapter: 16 (1) "Eligible conservancy district" means a conservancy 17 district that is eligible to receive a distribution from the motor 18 vehicle highway account under IC 8-14-1-3. 19 (2) "Qualified county" refers to any of the following counties: 20 (1) (A) A county having a population of more than sixty 21 thousand (60,000) and less than sixty-five thousand (65,000). 22 (2) (B) A county having a population of more than forty-three 23 thousand five hundred (43,500) and less than forty-five 24 thousand (45,000). 25 (3) (C) A county having a population of more than thirty-three 26 thousand (33,000) and less than thirty-three thousand one 27 hundred (33,100). 28 (4) (D) A county having a population of more than thirty-three 29 thousand three hundred (33,300) and less than thirty-four 30 thousand (34,000). 31 (5) (E) A county having a population of more than twenty-five 32 thousand (25,000) and less than twenty-six thousand (26,000). 33 (6) (F) A county having a population of more than nineteen 34 thousand (19,000) and less than nineteen thousand eight 35 hundred (19,800). 36 (7) (G) A county having a population of more than nineteen 37 thousand eight hundred (19,800) and less than nineteen 38 thousand eight hundred fifty (19,850). 39 (8) (H) A county having a population of more than twelve 40 thousand two hundred (12,200) and less than twelve thousand 41 five hundred (12,500). 42 (9) (I) A county having a population of more than nine 2024 IN 1013—LS 6174/DI 116 12 1 thousand eight hundred (9,800) and less than ten thousand 2 (10,000). 3 (10) (J) A county having a population of more than ten 4 thousand (10,000) and less than twelve thousand (12,000). 5 SECTION 8. IC 8-23-9-54, AS AMENDED BY P.L.47-2006, 6 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 7 JULY 1, 2024]: Sec. 54. (a) To provide funds for carrying out the 8 provisions of this chapter, there is created a state highway fund from 9 the following sources: 10 (1) All money in the general fund to the credit of the state 11 highway account. 12 (2) All money that is received from the Department of 13 Transportation or other federal agency and known as federal aid. 14 (3) All money paid into the state treasury to reimburse the state 15 for money paid out of the state highway fund. 16 (4) All money provided by Indiana law for the construction, 17 maintenance, reconstruction, repair, and control of public 18 highways, as provided under this chapter. 19 (5) All money that on May 22, 1933, was to be paid into the state 20 highway fund under contemplation of any statute in force as of 21 May 22, 1933. 22 (6) All money that may at any time be appropriated from the state 23 treasury. 24 (7) Any part of the state highway fund unexpended at the 25 expiration of any fiscal year, which shall remain in the fund and 26 be available for the succeeding years. 27 (8) Any money credited to the state highway fund from the motor 28 vehicle highway account under IC 8-14-1-3(4). IC 8-14-1-3(a)(4). 29 (9) Any money credited to the state highway fund from the 30 highway road and street fund under IC 8-14-2-3. 31 (10) Any money credited to the state highway fund under 32 IC 6-6-1.1-801.5, IC 6-6-4.1-5, or IC 8-16-1-17.1. 33 (11) Any money distributed to the state highway fund under 34 IC 8-14-14, IC 8-15.5, or IC 8-15.7. 35 (b) All expenses incurred in carrying out this chapter shall be paid 36 out of the state highway fund. 37 SECTION 9. IC 8-23-30-1, AS ADDED BY P.L.146-2016, 38 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 39 JULY 1, 2024]: Sec. 1. The following definitions apply throughout this 40 chapter: 41 (1) "Eligible conservancy district" means a conservancy 42 district that is eligible to receive a distribution from the motor 2024 IN 1013—LS 6174/DI 116 13 1 vehicle highway account under IC 8-14-1-3. 2 (1) (2) "Eligible project" means a project: 3 (A) that is undertaken by a local unit; 4 (B) that repairs or increases the capacity of local roads and 5 bridges; and 6 (C) that is part of the local unit's transportation asset 7 management plan. 8 (2) (3) "Fund" refers to the local road and bridge matching grant 9 fund established by section 2 of this chapter. 10 (3) (4) "Local unit" means a county, or a municipality, or an 11 eligible conservancy district. 12 (4) (5) "Transportation asset management plan" includes planning 13 for drainage systems and rights-of-way that affect transportation 14 assets. 15 SECTION 10. IC 8-23-30-6, AS AMENDED BY P.L.218-2017, 16 SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 17 JULY 1, 2024]: Sec. 6. If the department approves a grant to a local 18 unit under this chapter, the required local matching amount by the local 19 unit is equal to the following applicable percentage of the total cost of 20 the eligible project: 21 (1) For a county applicant, the following: 22 (A) Fifty percent (50%), if the county has a population greater 23 than or equal to fifty thousand (50,000). 24 (B) Twenty-five percent (25%), if the county has a population 25 of less than fifty thousand (50,000). 26 (2) For a city or town applicant, the following: 27 (A) Fifty percent (50%), if the city or town has a population 28 greater than or equal to ten thousand (10,000). 29 (B) Twenty-five percent (25%), if the city or town has a 30 population of less than ten thousand (10,000). 31 (3) For an eligible conservancy district applicant, the 32 following: 33 (A) Fifty percent (50%), if the eligible conservancy district 34 has a population greater than or equal to ten thousand 35 (10,000). 36 (B) Twenty-five percent (25%), if the eligible conservancy 37 district has a population of less than ten thousand (10,000). 38 SECTION 11. IC 9-13-2-173.3, AS ADDED BY P.L.216-2014, 39 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 40 JULY 1, 2024]: Sec. 173.3. "State highway fund" refers to the state 41 highway fund established by IC 8-23-9-54. The term is synonymous 42 with the primary highway system special account described in 2024 IN 1013—LS 6174/DI 116 14 1 IC 8-14-2-1(1). 2 SECTION 12. IC 36-3-7-7, AS ADDED BY P.L.179-2023, 3 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 4 JULY 1, 2024]: Sec. 7. (a) The definitions in IC 8-14-1 apply 5 throughout this section. 6 (b) Beginning in calendar year 2024, the following amounts must be 7 used by the consolidated city for the construction, reconstruction, and 8 preservation of the consolidated city's local streets (as defined in 9 IC 8-14-2-1(9)) IC 8-14-2-1(8)) and alleys: 10 (1) One hundred percent (100%) of the money distributed to the 11 consolidated city under section 2(2) of this chapter that is 12 attributable to the consolidated city's population in Wayne, Pike, 13 and Decatur townships not included in the population of the fire 14 special service district. 15 (2) In addition to the money distributed under subdivision (1), an 16 appropriation by the consolidated city in an amount that is the 17 greater of the following: 18 (A) Eight million dollars ($8,000,000). 19 (B) The amount distributed to the consolidated city under 20 subdivision (1) for the prior calendar year. 21 (c) The appropriation required under subsection (b)(2)(B) may not 22 include revenue allocated to public safety purposes under IC 6-3.6-6. 23 SECTION 13. IC 36-9-42.2-4.5, AS ADDED BY P.L.218-2017, 24 SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 25 JULY 1, 2024]: Sec. 4.5. As used in this chapter, "transportation asset 26 management plan" has the meaning set forth in IC 8-23-30-1(4). 27 IC 8-23-30-1. 2024 IN 1013—LS 6174/DI 116