Introduced Version
HOUSE BILL No. 1085
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DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-14; IC 8-23.
Synopsis: Road funding. Provides that the amounts currently
distributed from the motor vehicle highway account and the local road
and street account to counties, cities, and towns based upon the
proportionate share of road and street mileage shall instead be
distributed based on the proportionate share of road and street vehicle
miles traveled. Provides that the Indiana department of transportation
shall establish guidelines outlining the procedures required to
determine vehicle miles traveled.
Effective: July 1, 2025.
Moed
January 8, 2025, read first time and referred to Committee on Roads and Transportation.
2025 IN 1085—LS 6110/DI 134 Introduced
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1085
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 P.L.141-2024,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 3. (a) The money collected for the motor vehicle
4 highway account fund and remaining after refunds and the payment of
5 all expenses incurred in the collection of the money and after
6 transferring three hundred twenty-five thousand dollars ($325,000)
7 each month to the motor carrier regulation fund (IC 8-2.1-23), shall be
8 allocated to and distributed among the department and subdivisions
9 designated as follows:
10 (1) Of the net amount in the motor vehicle highway account the
11 state comptroller shall set aside for the cities and towns of the
12 state twelve and thirteen hundredths percent (12.13%). This sum
13 shall be allocated to the cities and towns upon the basis that the
14 population of each city and town bears to the total population of
15 all the cities and towns and shall be used for the construction or
16 reconstruction and maintenance of streets and alleys and shall be
17 annually budgeted as now provided by law. However, no part of
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1 such sum shall be used for any other purpose than for the
2 purposes defined in this chapter. If any funds allocated to any city
3 or town shall be used by any officer or officers of such city or
4 town for any purpose or purposes other than for the purposes as
5 defined in this chapter, such officer or officers shall be liable
6 upon their official bonds to such city or town in such amount so
7 used for other purposes than for the purposes as defined in this
8 chapter, together with the costs of said action and reasonable
9 attorney fees, recoverable in an action or suit instituted in the
10 name of the state of Indiana on the relation of any taxpayer or
11 taxpayers resident of such city or town. A monthly distribution
12 thereof of funds accumulated during the preceding month shall be
13 made by the state comptroller.
14 (2) Of the net amount in the motor vehicle highway account, the
15 state comptroller shall set aside for the counties of the state
16 twenty-five and eighty-seven hundredths percent (25.87%).
17 However, as to the allocation to cities and towns under
18 subdivision (1) and as to the allocation to counties under this
19 subdivision, in the event that the amount in the motor vehicle
20 highway account fund remaining after refunds and after the
21 payment of all expenses incurred in the collection thereof is less
22 than twenty-two million six hundred fifty thousand dollars
23 ($22,650,000) in any fiscal year, then the amount so set aside in
24 the next calendar year for distributions to counties shall be
25 reduced fifty-four percent (54%) of such deficit and the amount
26 so set aside for distribution in the next calendar year to cities and
27 towns shall be reduced thirteen percent (13%) of such deficit.
28 Such reduced distributions shall begin with the distribution
29 January 1 of each year.
30 (3) The amount set aside for the counties of the state under the
31 provisions of subdivision (2) shall be allocated monthly upon the
32 following basis:
33 (A) Five percent (5%) of the amount allocated to the counties
34 to be divided equally among the ninety-two (92) counties.
35 (B) Sixty-five percent (65%) of the amount allocated to the
36 counties to be divided on the basis of the ratio of the actual
37 vehicle miles now traveled and in use, of county roads
38 traveled in each county to the total mileage of county roads
39 vehicle miles traveled in the state, which shall be annually
40 determined, accurately, by the department and submitted to the
41 state comptroller before April 1 of each year. The department
42 shall determine total vehicle miles traveled in each county
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1 according to procedures adopted by the department.
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 number of motor vehicle registrations
7 by county under this clause and submit its determination to the
8 state comptroller before 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) The department shall establish guidelines outlining the
38 procedures required to determine vehicle miles traveled as
39 required under subsection (a).
40 SECTION 2. IC 8-14-1-11, AS AMENDED BY P.L.9-2024,
41 SECTION 289, IS AMENDED TO READ AS FOLLOWS
42 [EFFECTIVE JULY 1, 2025]: Sec. 11. (a) The department may create
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1 a local agency revolving fund from money appropriated under section
2 3(7) 3(a)(7) of this chapter for the purpose of maintaining a sufficient
3 working balance in accounts established primarily to facilitate the
4 matching of federal and local money for highway projects.
5 (b) The revolving fund balance must be maintained through
6 reimbursement from a local unit for money used by that unit to match
7 federal funds.
8 (c) If the local unit fails to reimburse the revolving fund, the
9 department shall notify the local unit that the department has found the
10 outstanding accounts receivable to be uncollectible.
11 (d) The attorney general shall review the outstanding accounts
12 receivable and if the attorney general agrees with the department's
13 assessment of the account's status, the attorney general shall certify to
14 the state comptroller that the outstanding accounts receivable is
15 uncollectible and request a transfer of funds as provided in subsection
16 (e).
17 (e) Upon receipt of a certificate as specified in subsection (d), the
18 state comptroller shall:
19 (1) immediately notify the delinquent local unit of the claim; and
20 (2) if proof of payment is not furnished to the state comptroller
21 within thirty (30) days after the notification, transfer an amount
22 equal to the outstanding accounts receivable to the department
23 from the delinquent local unit's allocations from the motor vehicle
24 highway account for deposit in the local agency revolving fund.
25 (f) Transfers shall be made under subsection (e) until the unpaid
26 amount has been paid in full under the terms of the agreement.
27 However, the agreement may be amended if both the department and
28 the unit agree to amortize the transfer over a period not to exceed five
29 (5) years.
30 (g) Money in the fund at the end of a fiscal year does not revert to
31 the state general fund.
32 SECTION 3. IC 8-14-2-4, AS AMENDED BY P.L.9-2024,
33 SECTION 292, IS AMENDED TO READ AS FOLLOWS
34 [EFFECTIVE JULY 1, 2025]: Sec. 4. (a) The state comptroller shall
35 establish a special account to be called the "local road and street
36 account" and credit this account monthly with thirty-seven percent
37 (37%) of the money deposited in the highway, road and street fund.
38 (b) The state comptroller shall distribute to units of local
39 government money from this account each month. Before making any
40 other distributions under this chapter, the state comptroller shall
41 distribute E85 incentive payments to all political subdivisions entitled
42 to a payment under section 8 of this chapter (before its expiration).
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1 (c) After distributing E85 incentive payments required under section
2 8 of this chapter (before its expiration), the state comptroller shall
3 allocate to each county the remaining money in this account on the
4 basis of the ratio of each county's passenger car registrations to the total
5 passenger car registrations of the state. The state comptroller shall
6 further determine the suballocation between the county and the cities
7 within the county as follows:
8 (1) In counties having a population of more than fifty thousand
9 (50,000), sixty percent (60%) of the money shall be distributed on
10 the basis of the population of the city or town as a percentage of
11 the total population of the county and forty percent (40%)
12 distributed on the basis of the ratio of city and town street mileage
13 vehicle miles traveled to county road mileage. vehicle miles
14 traveled.
15 (2) In counties having a population of fifty thousand (50,000) or
16 less, twenty percent (20%) of the money shall be distributed on
17 the basis of the population of the city or town as a percentage of
18 the total population of the county and eighty percent (80%)
19 distributed on the basis of the ratio of city and town street mileage
20 vehicle miles traveled to county road mileage. vehicle miles
21 traveled.
22 (3) For the purposes of allocating funds as provided in this
23 section, towns which become incorporated as a town between the
24 effective dates of decennial censuses shall be eligible for
25 allocations upon the effectiveness of a corrected population count
26 for the town under IC 1-1-3.5.
27 (4) Money allocated under the provisions of this section to
28 counties containing a consolidated city shall be credited or
29 allocated to the department of transportation of the consolidated
30 city.
31 (d) Each month the state comptroller shall inform the department of
32 the amounts allocated to each unit of local government from the local
33 road and street account.
34 (e) The department shall establish guidelines outlining the
35 procedures required to determine vehicle miles traveled as
36 required under subsection (c).
37 SECTION 4. IC 8-23-9-54, AS AMENDED BY P.L.47-2006,
38 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2025]: Sec. 54. (a) To provide funds for carrying out the
40 provisions of this chapter, there is created a state highway fund from
41 the following sources:
42 (1) All money in the general fund to the credit of the state
2025 IN 1085—LS 6110/DI 134 6
1 highway account.
2 (2) All money that is received from the Department of
3 Transportation or other federal agency and known as federal aid.
4 (3) All money paid into the state treasury to reimburse the state
5 for money paid out of the state highway fund.
6 (4) All money provided by Indiana law for the construction,
7 maintenance, reconstruction, repair, and control of public
8 highways, as provided under this chapter.
9 (5) All money that on May 22, 1933, was to be paid into the state
10 highway fund under contemplation of any statute in force as of
11 May 22, 1933.
12 (6) All money that may at any time be appropriated from the state
13 treasury.
14 (7) Any part of the state highway fund unexpended at the
15 expiration of any fiscal year, which shall remain in the fund and
16 be available for the succeeding years.
17 (8) Any money credited to the state highway fund from the motor
18 vehicle highway account under IC 8-14-1-3(4). IC 8-14-1-3(a)(4).
19 (9) Any money credited to the state highway fund from the
20 highway road and street fund under IC 8-14-2-3.
21 (10) Any money credited to the state highway fund under
22 IC 6-6-1.1-801.5, IC 6-6-4.1-5, or IC 8-16-1-17.1.
23 (11) Any money distributed to the state highway fund under
24 IC 8-14-14, IC 8-15.5, or IC 8-15.7.
25 (b) All expenses incurred in carrying out this chapter shall be paid
26 out of the state highway fund.
27 SECTION 5. IC 8-23-15-1 IS AMENDED TO READ AS
28 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. The department shall
29 periodically inventory the mileage, vehicle miles traveled, and use of
30 the local road systems under the jurisdiction of the counties and the
31 street systems under the jurisdiction of municipalities.
32 SECTION 6. IC 8-23-15-4 IS AMENDED TO READ AS
33 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 4. The department shall
34 use the inventory developed under this chapter in its annual
35 certification of county road mileage. vehicle miles traveled.
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