Indiana 2025 Regular Session

Indiana House Bill HB1085 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. 1085
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.
15	15	Effective: July 1, 2025.
16	16	Moed
17	17	January 8, 2025, read first time and referred to Committee on Roads and Transportation.
18	18	2025 IN 1085—LS 6110/DI 134 Introduced
19	19	First Regular Session of the 124th General Assembly (2025)
20	20	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
21	21	Constitution) is being amended, the text of the existing provision will appear in this style type,
22	22	additions will appear in this style type, and deletions will appear in this style type.
23	23	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
24	24	provision adopted), the text of the new provision will appear in this style type. Also, the
25	25	word NEW will appear in that style type in the introductory clause of each SECTION that adds
26	26	a new provision to the Indiana Code or the Indiana Constitution.
27	27	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
28	28	between statutes enacted by the 2024 Regular Session of the General Assembly.
29	29	HOUSE BILL No. 1085
30	30	A BILL FOR AN ACT to amend the Indiana Code concerning
31	31	transportation.
32	32	Be it enacted by the General Assembly of the State of Indiana:
33	33	1 SECTION 1. IC 8-14-1-3, AS AMENDED BY P.L.141-2024,
34	34	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35	35	3 JULY 1, 2025]: Sec. 3. (a) The money collected for the motor vehicle
36	36	4 highway account fund and remaining after refunds and the payment of
37	37	5 all expenses incurred in the collection of the money and after
38	38	6 transferring three hundred twenty-five thousand dollars ($325,000)
39	39	7 each month to the motor carrier regulation fund (IC 8-2.1-23), shall be
40	40	8 allocated to and distributed among the department and subdivisions
41	41	9 designated as follows:
42	42	10 (1) Of the net amount in the motor vehicle highway account the
43	43	11 state comptroller shall set aside for the cities and towns of the
44	44	12 state twelve and thirteen hundredths percent (12.13%). This sum
45	45	13 shall be allocated to the cities and towns upon the basis that the
46	46	14 population of each city and town bears to the total population of
47	47	15 all the cities and towns and shall be used for the construction or
48	48	16 reconstruction and maintenance of streets and alleys and shall be
49	49	17 annually budgeted as now provided by law. However, no part of
50	50	2025 IN 1085—LS 6110/DI 134 2
51	51	1 such sum shall be used for any other purpose than for the
52	52	2 purposes defined in this chapter. If any funds allocated to any city
53	53	3 or town shall be used by any officer or officers of such city or
54	54	4 town for any purpose or purposes other than for the purposes as
55	55	5 defined in this chapter, such officer or officers shall be liable
56	56	6 upon their official bonds to such city or town in such amount so
57	57	7 used for other purposes than for the purposes as defined in this
58	58	8 chapter, together with the costs of said action and reasonable
59	59	9 attorney fees, recoverable in an action or suit instituted in the
60	60	10 name of the state of Indiana on the relation of any taxpayer or
61	61	11 taxpayers resident of such city or town. A monthly distribution
62	62	12 thereof of funds accumulated during the preceding month shall be
63	63	13 made by the state comptroller.
64	64	14 (2) Of the net amount in the motor vehicle highway account, the
65	65	15 state comptroller shall set aside for the counties of the state
66	66	16 twenty-five and eighty-seven hundredths percent (25.87%).
67	67	17 However, as to the allocation to cities and towns under
68	68	18 subdivision (1) and as to the allocation to counties under this
69	69	19 subdivision, in the event that the amount in the motor vehicle
70	70	20 highway account fund remaining after refunds and after the
71	71	21 payment of all expenses incurred in the collection thereof is less
72	72	22 than twenty-two million six hundred fifty thousand dollars
73	73	23 ($22,650,000) in any fiscal year, then the amount so set aside in
74	74	24 the next calendar year for distributions to counties shall be
75	75	25 reduced fifty-four percent (54%) of such deficit and the amount
76	76	26 so set aside for distribution in the next calendar year to cities and
77	77	27 towns shall be reduced thirteen percent (13%) of such deficit.
78	78	28 Such reduced distributions shall begin with the distribution
79	79	29 January 1 of each year.
80	80	30 (3) The amount set aside for the counties of the state under the
81	81	31 provisions of subdivision (2) shall be allocated monthly upon the
82	82	32 following basis:
83	83	33 (A) Five percent (5%) of the amount allocated to the counties
84	84	34 to be divided equally among the ninety-two (92) counties.
85	85	35 (B) Sixty-five percent (65%) of the amount allocated to the
86	86	36 counties to be divided on the basis of the ratio of the actual
87	87	37 vehicle miles now traveled and in use, of county roads
88	88	38 traveled in each county to the total mileage of county roads
89	89	39 vehicle miles traveled in the state, which shall be annually
90	90	40 determined, accurately, by the department and submitted to the
91	91	41 state comptroller before April 1 of each year. The department
92	92	42 shall determine total vehicle miles traveled in each county
93	93	2025 IN 1085—LS 6110/DI 134 3
94	94	1 according to procedures adopted by the department.
95	95	2 (C) Thirty percent (30%) of the amount allocated to the
96	96	3 counties to be divided on the basis of the ratio of the motor
97	97	4 vehicle registrations of each county to the total motor vehicle
98	98	5 registration of the state. The bureau of motor vehicles shall
99	99	6 annually determine the number of motor vehicle registrations
100	100	7 by county under this clause and submit its determination to the
101	101	8 state comptroller before April 1 each year.
102	102	9 All money so distributed to the several counties of the state shall
103	103	10 constitute a special road fund for each of the respective counties
104	104	11 and shall be under the exclusive supervision and direction of the
105	105	12 board of county commissioners in the construction,
106	106	13 reconstruction, maintenance, or repair of the county highways or
107	107	14 bridges on such county highways within such county.
108	108	15 (4) Each month the remainder of the net amount in the motor
109	109	16 vehicle highway account shall be credited to the state highway
110	110	17 fund for the use of the department.
111	111	18 (5) Money in the fund may not be used for any toll road or toll
112	112	19 bridge project.
113	113	20 (6) Notwithstanding any other provisions of this section, money
114	114	21 in the motor vehicle highway account fund may be appropriated
115	115	22 to the Indiana department of transportation from the amounts
116	116	23 distributed to the political subdivisions of the state to pay the
117	117	24 costs incurred by the department in providing services to those
118	118	25 subdivisions.
119	119	26 (7) Notwithstanding any other provisions of this section or of
120	120	27 IC 8-14-8, for the purpose of maintaining a sufficient working
121	121	28 balance in accounts established primarily to facilitate the
122	122	29 matching of federal and local money for highway projects, money
123	123	30 may be appropriated to the Indiana department of transportation
124	124	31 as follows:
125	125	32 (A) One-half (1/2) from the amounts set aside under
126	126	33 subdivisions (1) and (2) for counties and for those cities and
127	127	34 towns with a population greater than five thousand (5,000).
128	128	35 (B) One-half (1/2) from the distressed road fund under
129	129	36 IC 8-14-8.
130	130	37 (b) The department shall establish guidelines outlining the
131	131	38 procedures required to determine vehicle miles traveled as
132	132	39 required under subsection (a).
133	133	40 SECTION 2. IC 8-14-1-11, AS AMENDED BY P.L.9-2024,
134	134	41 SECTION 289, IS AMENDED TO READ AS FOLLOWS
135	135	42 [EFFECTIVE JULY 1, 2025]: Sec. 11. (a) The department may create
136	136	2025 IN 1085—LS 6110/DI 134 4
137	137	1 a local agency revolving fund from money appropriated under section
138	138	2 3(7) 3(a)(7) of this chapter for the purpose of maintaining a sufficient
139	139	3 working balance in accounts established primarily to facilitate the
140	140	4 matching of federal and local money for highway projects.
141	141	5 (b) The revolving fund balance must be maintained through
142	142	6 reimbursement from a local unit for money used by that unit to match
143	143	7 federal funds.
144	144	8 (c) If the local unit fails to reimburse the revolving fund, the
145	145	9 department shall notify the local unit that the department has found the
146	146	10 outstanding accounts receivable to be uncollectible.
147	147	11 (d) The attorney general shall review the outstanding accounts
148	148	12 receivable and if the attorney general agrees with the department's
149	149	13 assessment of the account's status, the attorney general shall certify to
150	150	14 the state comptroller that the outstanding accounts receivable is
151	151	15 uncollectible and request a transfer of funds as provided in subsection
152	152	16 (e).
153	153	17 (e) Upon receipt of a certificate as specified in subsection (d), the
154	154	18 state comptroller shall:
155	155	19 (1) immediately notify the delinquent local unit of the claim; and
156	156	20 (2) if proof of payment is not furnished to the state comptroller
157	157	21 within thirty (30) days after the notification, transfer an amount
158	158	22 equal to the outstanding accounts receivable to the department
159	159	23 from the delinquent local unit's allocations from the motor vehicle
160	160	24 highway account for deposit in the local agency revolving fund.
161	161	25 (f) Transfers shall be made under subsection (e) until the unpaid
162	162	26 amount has been paid in full under the terms of the agreement.
163	163	27 However, the agreement may be amended if both the department and
164	164	28 the unit agree to amortize the transfer over a period not to exceed five
165	165	29 (5) years.
166	166	30 (g) Money in the fund at the end of a fiscal year does not revert to
167	167	31 the state general fund.
168	168	32 SECTION 3. IC 8-14-2-4, AS AMENDED BY P.L.9-2024,
169	169	33 SECTION 292, IS AMENDED TO READ AS FOLLOWS
170	170	34 [EFFECTIVE JULY 1, 2025]: Sec. 4. (a) The state comptroller shall
171	171	35 establish a special account to be called the "local road and street
172	172	36 account" and credit this account monthly with thirty-seven percent
173	173	37 (37%) of the money deposited in the highway, road and street fund.
174	174	38 (b) The state comptroller shall distribute to units of local
175	175	39 government money from this account each month. Before making any
176	176	40 other distributions under this chapter, the state comptroller shall
177	177	41 distribute E85 incentive payments to all political subdivisions entitled
178	178	42 to a payment under section 8 of this chapter (before its expiration).
179	179	2025 IN 1085—LS 6110/DI 134 5
180	180	1 (c) After distributing E85 incentive payments required under section
181	181	2 8 of this chapter (before its expiration), the state comptroller shall
182	182	3 allocate to each county the remaining money in this account on the
183	183	4 basis of the ratio of each county's passenger car registrations to the total
184	184	5 passenger car registrations of the state. The state comptroller shall
185	185	6 further determine the suballocation between the county and the cities
186	186	7 within the county as follows:
187	187	8 (1) In counties having a population of more than fifty thousand
188	188	9 (50,000), sixty percent (60%) of the money shall be distributed on
189	189	10 the basis of the population of the city or town as a percentage of
190	190	11 the total population of the county and forty percent (40%)
191	191	12 distributed on the basis of the ratio of city and town street mileage
192	192	13 vehicle miles traveled to county road mileage. vehicle miles
193	193	14 traveled.
194	194	15 (2) In counties having a population of fifty thousand (50,000) or
195	195	16 less, twenty percent (20%) of the money shall be distributed on
196	196	17 the basis of the population of the city or town as a percentage of
197	197	18 the total population of the county and eighty percent (80%)
198	198	19 distributed on the basis of the ratio of city and town street mileage
199	199	20 vehicle miles traveled to county road mileage. vehicle miles
200	200	21 traveled.
201	201	22 (3) For the purposes of allocating funds as provided in this
202	202	23 section, towns which become incorporated as a town between the
203	203	24 effective dates of decennial censuses shall be eligible for
204	204	25 allocations upon the effectiveness of a corrected population count
205	205	26 for the town under IC 1-1-3.5.
206	206	27 (4) Money allocated under the provisions of this section to
207	207	28 counties containing a consolidated city shall be credited or
208	208	29 allocated to the department of transportation of the consolidated
209	209	30 city.
210	210	31 (d) Each month the state comptroller shall inform the department of
211	211	32 the amounts allocated to each unit of local government from the local
212	212	33 road and street account.
213	213	34 (e) The department shall establish guidelines outlining the
214	214	35 procedures required to determine vehicle miles traveled as
215	215	36 required under subsection (c).
216	216	37 SECTION 4. IC 8-23-9-54, AS AMENDED BY P.L.47-2006,
217	217	38 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
218	218	39 JULY 1, 2025]: Sec. 54. (a) To provide funds for carrying out the
219	219	40 provisions of this chapter, there is created a state highway fund from
220	220	41 the following sources:
221	221	42 (1) All money in the general fund to the credit of the state
222	222	2025 IN 1085—LS 6110/DI 134 6
223	223	1 highway account.
224	224	2 (2) All money that is received from the Department of
225	225	3 Transportation or other federal agency and known as federal aid.
226	226	4 (3) All money paid into the state treasury to reimburse the state
227	227	5 for money paid out of the state highway fund.
228	228	6 (4) All money provided by Indiana law for the construction,
229	229	7 maintenance, reconstruction, repair, and control of public
230	230	8 highways, as provided under this chapter.
231	231	9 (5) All money that on May 22, 1933, was to be paid into the state
232	232	10 highway fund under contemplation of any statute in force as of
233	233	11 May 22, 1933.
234	234	12 (6) All money that may at any time be appropriated from the state
235	235	13 treasury.
236	236	14 (7) Any part of the state highway fund unexpended at the
237	237	15 expiration of any fiscal year, which shall remain in the fund and
238	238	16 be available for the succeeding years.
239	239	17 (8) Any money credited to the state highway fund from the motor
240	240	18 vehicle highway account under IC 8-14-1-3(4). IC 8-14-1-3(a)(4).
241	241	19 (9) Any money credited to the state highway fund from the
242	242	20 highway road and street fund under IC 8-14-2-3.
243	243	21 (10) Any money credited to the state highway fund under
244	244	22 IC 6-6-1.1-801.5, IC 6-6-4.1-5, or IC 8-16-1-17.1.
245	245	23 (11) Any money distributed to the state highway fund under
246	246	24 IC 8-14-14, IC 8-15.5, or IC 8-15.7.
247	247	25 (b) All expenses incurred in carrying out this chapter shall be paid
248	248	26 out of the state highway fund.
249	249	27 SECTION 5. IC 8-23-15-1 IS AMENDED TO READ AS
250	250	28 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. The department shall
251	251	29 periodically inventory the mileage, vehicle miles traveled, and use of
252	252	30 the local road systems under the jurisdiction of the counties and the
253	253	31 street systems under the jurisdiction of municipalities.
254	254	32 SECTION 6. IC 8-23-15-4 IS AMENDED TO READ AS
255	255	33 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 4. The department shall
256	256	34 use the inventory developed under this chapter in its annual
257	257	35 certification of county road mileage. vehicle miles traveled.
258	258	2025 IN 1085—LS 6110/DI 134