Indiana 2024 Regular Session

Indiana House Bill HB1185 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1185
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 8-14; IC 8-23.
7	7	Synopsis: Road funding. Provides that the amounts currently
8	8	distributed from the motor vehicle highway account and the local road
9	9	and street account to counties, cities, and towns based upon the
10	10	proportionate share of road and street mileage shall instead be
11	11	distributed based on the proportionate share of road and street vehicle
12	12	miles traveled. Provides that the Indiana department of transportation
13	13	shall establish guidelines outlining the procedures required to
14	14	determine vehicle miles traveled. Changes references from the "auditor
15	15	of state" to the "state comptroller" to conform with P.L.201-2023.
16	16	Effective: July 1, 2024.
17	17	Moed
18	18	January 9, 2024, read first time and referred to Committee on Roads and Transportation.
19	19	2024 IN 1185—LS 6005/DI 129 Introduced
20	20	Second Regular Session of the 123rd General Assembly (2024)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2023 Regular Session of the General Assembly.
30	30	HOUSE BILL No. 1185
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning
32	32	transportation.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 8-14-1-3, AS AMENDED BY P.L.108-2019,
35	35	2 SECTION 152, IS AMENDED TO READ AS FOLLOWS
36	36	3 [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) The money collected for the
37	37	4 motor vehicle highway account fund and remaining after refunds and
38	38	5 the payment of all expenses incurred in the collection of the money and
39	39	6 after transferring three hundred twenty-five thousand dollars
40	40	7 ($325,000) each month to the motor carrier regulation fund (IC
41	41	8 8-2.1-23), shall be allocated to and distributed among the department
42	42	9 and subdivisions designated as follows:
43	43	10 (1) Of the net amount in the motor vehicle highway account the
44	44	11 auditor of state comptroller shall set aside for the cities and
45	45	12 towns of the state twelve and thirteen hundredths percent
46	46	13 (12.13%). This sum shall be allocated to the cities and towns
47	47	14 upon the basis that the population of each city and town bears to
48	48	15 the total population of all the cities and towns and shall be used
49	49	16 for the construction or reconstruction and maintenance of streets
50	50	17 and alleys and shall be annually budgeted as now provided by
51	51	2024 IN 1185—LS 6005/DI 129 2
52	52	1 law. However, no part of such sum shall be used for any other
53	53	2 purpose than for the purposes defined in this chapter. If any funds
54	54	3 allocated to any city or town shall be used by any officer or
55	55	4 officers of such city or town for any purpose or purposes other
56	56	5 than for the purposes as defined in this chapter, such officer or
57	57	6 officers shall be liable upon their official bonds to such city or
58	58	7 town in such amount so used for other purposes than for the
59	59	8 purposes as defined in this chapter, together with the costs of said
60	60	9 action and reasonable attorney fees, recoverable in an action or
61	61	10 suit instituted in the name of the state of Indiana on the relation
62	62	11 of any taxpayer or taxpayers resident of such city or town. A
63	63	12 monthly distribution thereof of funds accumulated during the
64	64	13 preceding month shall be made by the auditor of state
65	65	14 comptroller.
66	66	15 (2) Of the net amount in the motor vehicle highway account, the
67	67	16 auditor of state comptroller shall set aside for the counties of the
68	68	17 state twenty-five and eighty-seven hundredths percent (25.87%).
69	69	18 However, as to the allocation to cities and towns under
70	70	19 subdivision (1) and as to the allocation to counties under this
71	71	20 subdivision, in the event that the amount in the motor vehicle
72	72	21 highway account fund remaining after refunds and after the
73	73	22 payment of all expenses incurred in the collection thereof is less
74	74	23 than twenty-two million six hundred fifty thousand dollars
75	75	24 ($22,650,000) in any fiscal year, then the amount so set aside in
76	76	25 the next calendar year for distributions to counties shall be
77	77	26 reduced fifty-four percent (54%) of such deficit and the amount
78	78	27 so set aside for distribution in the next calendar year to cities and
79	79	28 towns shall be reduced thirteen percent (13%) of such deficit.
80	80	29 Such reduced distributions shall begin with the distribution
81	81	30 January 1 of each year.
82	82	31 (3) The amount set aside for the counties of the state under the
83	83	32 provisions of subdivision (2) shall be allocated monthly upon the
84	84	33 following basis:
85	85	34 (A) Five percent (5%) of the amount allocated to the counties
86	86	35 to be divided equally among the ninety-two (92) counties.
87	87	36 (B) Sixty-five percent (65%) of the amount allocated to the
88	88	37 counties to be divided on the basis of the ratio of the actual
89	89	38 vehicle miles now traveled and in use, of county roads
90	90	39 traveled in each county to the total mileage of county roads
91	91	40 vehicle miles traveled in the state, which shall be annually
92	92	41 determined, accurately, by the department and submitted to the
93	93	42 auditor of state comptroller before April 1 of each year. The
94	94	2024 IN 1185—LS 6005/DI 129 3
95	95	1 department shall determine total vehicle miles traveled in
96	96	2 each county according to procedures adopted by the
97	97	3 department.
98	98	4 (C) Thirty percent (30%) of the amount allocated to the
99	99	5 counties to be divided on the basis of the ratio of the motor
100	100	6 vehicle registrations of each county to the total motor vehicle
101	101	7 registration of the state. The bureau of motor vehicles shall
102	102	8 annually determine the amount under this clause and submit
103	103	9 its determination to the auditor of state comptroller before
104	104	10 April 1 each year.
105	105	11 All money so distributed to the several counties of the state shall
106	106	12 constitute a special road fund for each of the respective counties
107	107	13 and shall be under the exclusive supervision and direction of the
108	108	14 board of county commissioners in the construction,
109	109	15 reconstruction, maintenance, or repair of the county highways or
110	110	16 bridges on such county highways within such county.
111	111	17 (4) Each month the remainder of the net amount in the motor
112	112	18 vehicle highway account shall be credited to the state highway
113	113	19 fund for the use of the department.
114	114	20 (5) Money in the fund may not be used for any toll road or toll
115	115	21 bridge project.
116	116	22 (6) Notwithstanding any other provisions of this section, money
117	117	23 in the motor vehicle highway account fund may be appropriated
118	118	24 to the Indiana department of transportation from the amounts
119	119	25 distributed to the political subdivisions of the state to pay the
120	120	26 costs incurred by the department in providing services to those
121	121	27 subdivisions.
122	122	28 (7) Notwithstanding any other provisions of this section or of
123	123	29 IC 8-14-8, for the purpose of maintaining a sufficient working
124	124	30 balance in accounts established primarily to facilitate the
125	125	31 matching of federal and local money for highway projects, money
126	126	32 may be appropriated to the Indiana department of transportation
127	127	33 as follows:
128	128	34 (A) One-half (1/2) from the amounts set aside under
129	129	35 subdivisions (1) and (2) for counties and for those cities and
130	130	36 towns with a population greater than five thousand (5,000).
131	131	37 (B) One-half (1/2) from the distressed road fund under
132	132	38 IC 8-14-8.
133	133	39 (b) The department shall establish guidelines outlining the
134	134	40 procedures required to determine vehicle miles traveled as
135	135	41 required under subsection (a).
136	136	42 SECTION 2. IC 8-14-1-11 IS AMENDED TO READ AS
137	137	2024 IN 1185—LS 6005/DI 129 4
138	138	1 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 11. (a) The department
139	139	2 may create a local agency revolving fund from money appropriated
140	140	3 under section 3(7) 3(a)(7) of this chapter for the purpose of
141	141	4 maintaining a sufficient working balance in accounts established
142	142	5 primarily to facilitate the matching of federal and local money for
143	143	6 highway projects.
144	144	7 (b) The revolving fund balance must be maintained through
145	145	8 reimbursement from a local unit for money used by that unit to match
146	146	9 federal funds.
147	147	10 (c) If the local unit fails to reimburse the revolving fund, the
148	148	11 department shall notify the local unit that the department has found the
149	149	12 outstanding accounts receivable to be uncollectible.
150	150	13 (d) The attorney general shall review the outstanding accounts
151	151	14 receivable and if the attorney general agrees with the department's
152	152	15 assessment of the account's status, the attorney general shall certify to
153	153	16 the auditor of state comptroller that the outstanding accounts
154	154	17 receivable is uncollectible and request a transfer of funds as provided
155	155	18 in subsection (e).
156	156	19 (e) Upon receipt of a certificate as specified in subsection (d), the
157	157	20 auditor of state comptroller shall:
158	158	21 (1) immediately notify the delinquent local unit of the claim; and
159	159	22 (2) if proof of payment is not furnished to the auditor of state
160	160	23 comptroller within thirty (30) days after the notification, transfer
161	161	24 an amount equal to the outstanding accounts receivable to the
162	162	25 department from the delinquent local unit's allocations from the
163	163	26 motor vehicle highway account for deposit in the local agency
164	164	27 revolving fund.
165	165	28 (f) Transfers shall be made under subsection (e) until the unpaid
166	166	29 amount has been paid in full under the terms of the agreement.
167	167	30 However, the agreement may be amended if both the department and
168	168	31 the unit agree to amortize the transfer over a period not to exceed five
169	169	32 (5) years.
170	170	33 (g) Money in the fund at the end of a fiscal year does not revert to
171	171	34 the state general fund.
172	172	35 SECTION 3. IC 8-14-2-4, AS AMENDED BY P.L.185-2018,
173	173	36 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
174	174	37 JULY 1, 2024]: Sec. 4. (a) The auditor of state comptroller shall
175	175	38 establish a special account to be called the "local road and street
176	176	39 account" and credit this account monthly with thirty-seven percent
177	177	40 (37%) of the money deposited in the highway, road and street fund.
178	178	41 (b) The auditor state comptroller shall distribute to units of local
179	179	42 government money from this account each month. Before making any
180	180	2024 IN 1185—LS 6005/DI 129 5
181	181	1 other distributions under this chapter, the auditor state comptroller
182	182	2 shall distribute E85 incentive payments to all political subdivisions
183	183	3 entitled to a payment under section 8 of this chapter (before its
184	184	4 expiration).
185	185	5 (c) After distributing E85 incentive payments required under section
186	186	6 8 of this chapter (before its expiration), the auditor of state
187	187	7 comptroller shall allocate to each county the remaining money in this
188	188	8 account on the basis of the ratio of each county's passenger car
189	189	9 registrations to the total passenger car registrations of the state. The
190	190	10 auditor state comptroller shall further determine the suballocation
191	191	11 between the county and the cities within the county as follows:
192	192	12 (1) In counties having a population of more than fifty thousand
193	193	13 (50,000), sixty percent (60%) of the money shall be distributed on
194	194	14 the basis of the population of the city or town as a percentage of
195	195	15 the total population of the county and forty percent (40%)
196	196	16 distributed on the basis of the ratio of city and town street mileage
197	197	17 vehicle miles traveled to county road mileage. vehicle miles
198	198	18 traveled.
199	199	19 (2) In counties having a population of fifty thousand (50,000) or
200	200	20 less, twenty percent (20%) of the money shall be distributed on
201	201	21 the basis of the population of the city or town as a percentage of
202	202	22 the total population of the county and eighty percent (80%)
203	203	23 distributed on the basis of the ratio of city and town street mileage
204	204	24 vehicle miles traveled to county road mileage. vehicle miles
205	205	25 traveled.
206	206	26 (3) For the purposes of allocating funds as provided in this
207	207	27 section, towns which become incorporated as a town between the
208	208	28 effective dates of decennial censuses shall be eligible for
209	209	29 allocations upon the effectiveness of a corrected population count
210	210	30 for the town under IC 1-1-3.5.
211	211	31 (4) Money allocated under the provisions of this section to
212	212	32 counties containing a consolidated city shall be credited or
213	213	33 allocated to the department of transportation of the consolidated
214	214	34 city.
215	215	35 (d) Each month the auditor of state comptroller shall inform the
216	216	36 department of the amounts allocated to each unit of local government
217	217	37 from the local road and street account.
218	218	38 (e) The department shall establish guidelines outlining the
219	219	39 procedures required to determine vehicle miles traveled as
220	220	40 required under subsection (c).
221	221	41 SECTION 4. IC 8-23-9-54, AS AMENDED BY P.L.47-2006,
222	222	42 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
223	223	2024 IN 1185—LS 6005/DI 129 6
224	224	1 JULY 1, 2024]: Sec. 54. (a) To provide funds for carrying out the
225	225	2 provisions of this chapter, there is created a state highway fund from
226	226	3 the following sources:
227	227	4 (1) All money in the general fund to the credit of the state
228	228	5 highway account.
229	229	6 (2) All money that is received from the Department of
230	230	7 Transportation or other federal agency and known as federal aid.
231	231	8 (3) All money paid into the state treasury to reimburse the state
232	232	9 for money paid out of the state highway fund.
233	233	10 (4) All money provided by Indiana law for the construction,
234	234	11 maintenance, reconstruction, repair, and control of public
235	235	12 highways, as provided under this chapter.
236	236	13 (5) All money that on May 22, 1933, was to be paid into the state
237	237	14 highway fund under contemplation of any statute in force as of
238	238	15 May 22, 1933.
239	239	16 (6) All money that may at any time be appropriated from the state
240	240	17 treasury.
241	241	18 (7) Any part of the state highway fund unexpended at the
242	242	19 expiration of any fiscal year, which shall remain in the fund and
243	243	20 be available for the succeeding years.
244	244	21 (8) Any money credited to the state highway fund from the motor
245	245	22 vehicle highway account under IC 8-14-1-3(4). IC 8-14-1-3(a)(4).
246	246	23 (9) Any money credited to the state highway fund from the
247	247	24 highway road and street fund under IC 8-14-2-3.
248	248	25 (10) Any money credited to the state highway fund under
249	249	26 IC 6-6-1.1-801.5, IC 6-6-4.1-5, or IC 8-16-1-17.1.
250	250	27 (11) Any money distributed to the state highway fund under
251	251	28 IC 8-14-14, IC 8-15.5, or IC 8-15.7.
252	252	29 (b) All expenses incurred in carrying out this chapter shall be paid
253	253	30 out of the state highway fund.
254	254	31 SECTION 5. IC 8-23-15-1 IS AMENDED TO READ AS
255	255	32 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 1. The department shall
256	256	33 periodically inventory the mileage, vehicle miles traveled, and use of
257	257	34 the local road systems under the jurisdiction of the counties and the
258	258	35 street systems under the jurisdiction of municipalities.
259	259	36 SECTION 6. IC 8-23-15-4 IS AMENDED TO READ AS
260	260	37 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 4. The department shall
261	261	38 use the inventory developed under this chapter in its annual
262	262	39 certification of county road mileage. vehicle miles traveled.
263	263	2024 IN 1185—LS 6005/DI 129