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 6554 NOTE PREPARED: Dec 21, 2023 BILL NUMBER: HB 1090 BILL AMENDED: SUBJECT: Transportation Matters. FIRST AUTHOR: Rep. Pressel BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED: GENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: This bill provides that a conveyance to the state is excepted from the definition of a "conveyance document" requiring a sales disclosure form. The bill amends the annual reporting requirements for the Indiana Department of Transportation (INDOT). The bill also requires evidence of a failure to properly use a restraint system in certain motor vehicles to be admitted as failure to mitigate damages in a civil action. It also provides that an engineering and traffic investigation is not required to decrease the speed limit to 20 miles per hour on a highway with a functional classification of minor collector or local road in an urban district. Effective Date: July 1, 2024. Explanation of State Expenditures: Sales Disclosure - Exempting state from sales disclosure requirements for property conveyances is expected to result in workload and cost savings for INDOT. Based on anticipated conveyances for FY 2025, this change would result in approximately $315,000 in cost savings for the State Highway Fund. Engineering and Traffic Investigation - The bill would allow INDOT to decrease the speed limit without an engineering and traffic study if a stretch of highway is either a minor collector road or local road in an urban district. This change would decrease State Highway Fund expenditures on engineering and traffic studies beginning in FY 2025. The reduction in state expenditures is expected to be minimal. HB 1090 1 Additional Information - Industrial Rail Service Fund - The bill changes the amount a grant recipient must contribute from not more than 25% of project costs to not less than 25% of project costs. This change codifies existing practice as reported in the most recent publishing of the Industrial Rail Service Fund Grant Application Guidelines. INDOT currently specifies the maximum grant from the Industrial Rail Service Fund is $250,000 and cannot exceed 75% of project total costs. Eligible applicants are limited to Class II and III freight railroads or Port Authorities operating in Indiana (tourist, passenger, and museum railroads are not eligible). Classification as a Class II or III railroad is determined by the federal Surface Transportation Board based on the amount of revenue each railroad generates. Interim Committee on Roads and Transportation - The bill changes annual INDOT reporting requirements effective during the 2024 interim. These changes are not expected to have an impact on INDOT workload. Explanation of State Revenues: Changes in the bill related to evidence allowable in personal injury civil cases is not expected to impact civil court filing fee revenue. The bill also changes the maximum speed limit a local authority can establish for an alleyway from 30 miles per hour to 20 miles per hour. This change is not expected to have a fiscal impact. Explanation of Local Expenditures: Engineering and Traffic Investigation - The bill would allow local units of government to decrease the speed limit without an engineering and traffic study if stretch of highway is either a minor collector road or local road in an urban district. This change could decrease local expenditures on engineering and traffic studies to the extent local units of government consider reducing speed limits by exempting these roads from the required studies. Explanation of Local Revenues: State Agencies Affected: INDOT. Local Agencies Affected: Counties and municipalities. Information Sources: FY 2023 Grant Application Guidelines, Industrial Rail Service Fund; Andrea Zimmerman, INDOT. Fiscal Analyst: Bill Brumbach, 317-232-9559. HB 1090 2