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 ENROLLED ACT No. 1461
AN ACT to amend the Indiana Code concerning transportation and
to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 5-23-8-4 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 4. One (1) or more governmental bodies may enter
into a public-private agreement with respect to a transportation
project for the long term development, design, construction,
reconstruction, maintenance, repair, and financing of any shared
arterial roadways, including the costs associated with the
acquisition of right-of-way.
SECTION 2. IC 6-3.1-38.1 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]:
Chapter 38.1. Railroad Tax Credit for Qualified Infrastructure
Investment
Sec. 1. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
Sec. 2. As used in this chapter, "qualified applicant" means:
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(1) a short line rail company located in whole or in part in
Indiana that is classified by the United States Surface
Transportation Board as a Class II or Class III railroad that
makes qualified railroad expenditures; or
(2) an owner or lessee of a rail siding, industrial spur, or
industry track located:
(A) on or adjacent to a Class II or Class III railroad in
Indiana; or
(B) in a qualified rural county;
that makes qualified new rail infrastructure expenditures.
Sec. 3. As used in this chapter, "qualified new rail infrastructure
expenditures" means gross expenditures for new rail
infrastructure, including:
(1) construction of new track infrastructure such as industrial
leads, switches, spurs, sidings, rail loading docks, and
transloading structures, and engineering and site preparation
involved with servicing new customer locations;
(2) the expansion by a Class II or Class III railroad; or
(3) construction of new track infrastructure involved with
servicing new customer locations located in a qualified rural
county.
Sec. 4. As used in this chapter, "qualified railroad expenditures"
means gross expenditures for maintenance, reconstruction, or
replacement of railroad infrastructure, including track, roadbed,
bridges, crossings, signals, industrial leads and sidings, and track
related structures, owned or leased by a Class II or Class III
railroad located in Indiana. The term does not include
expenditures used to generate a federal tax credit or expenditures
funded by a state or federal grant.
Sec. 5. As used in this chapter, "qualified rural county" means
a county in Indiana with a population of not more than three
hundred thousand (300,000).
Sec. 6. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability incurred under IC 6-3-1 through
IC 6-3-7 (the adjusted gross income tax), as computed after the
application of all credits that under IC 6-3.1-1-2 are to be applied
before the credit provided by this chapter.
Sec. 7. As used in this chapter, "taxpayer" means a qualified
applicant that has any state tax liability, or a qualified applicant
that is considered a tax exempt entity (owned by a port or
governmental entity).
Sec. 8. (a) A taxpayer wishing to claim a tax credit under this
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chapter must apply to the department after completion of the
project for which qualified railroad expenditures or qualified new
rail infrastructure expenditures were incurred. The department
shall prescribe the form and manner of the application, which must
include:
(1) the number of miles of railroad track owned or leased in
Indiana; and
(2) a description and certification of the amount of the
taxpayer's qualified railroad expenditures or qualified new
rail infrastructure expenditures.
(b) The department shall evaluate a taxpayer's eligibility for a
tax credit under this chapter.
(c) The department shall certify the eligibility of a taxpayer that
meets the requirements for a tax credit under this chapter.
Sec. 9. (a) Subject to subsection (b), if the department certifies
a taxpayer under section 8 of this chapter, the taxpayer is entitled
to a tax credit against the taxpayer's state tax liability equal to:
(1) the taxpayer's:
(A) qualified railroad expenditures; or
(B) qualified new rail infrastructure expenditures;
multiplied by
(2) fifty percent (50%).
(b) The amount of a tax credit allowed under subsection (a) shall
not exceed the following:
(1) For qualified railroad expenditures, the product of:
(A) the number of miles of Class II or Class III railroad
track owned or leased by the taxpayer in Indiana at the
close of the taxable year; multiplied by
(B) three thousand five hundred dollars ($3,500).
(2) For qualified new rail infrastructure expenditures, the
lesser of:
(A) fifty percent (50%) of the qualified new rail
expenditures for each new rail served customer project
completed by the taxpayer in the taxable year; or
(B) five hundred thousand dollars ($500,000) per rail
served customer project.
Sec. 10. (a) If a pass through entity is entitled to a credit under
section 9 of this chapter but does not have state tax liability against
which the credit may be applied, a shareholder, partner, or
member of the pass through entity is entitled to a credit equal to:
(1) the credit determined for the pass through entity for the
taxable year; multiplied by
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(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is
entitled.
(b) The credit provided under subsection (a) is in addition to a
credit to which a shareholder, partner, or member of a pass
through entity is otherwise entitled under this chapter. However,
a pass through entity and a shareholder, partner, or member of the
pass through entity may not claim more than one (1) credit for the
same qualified railroad expenditure or qualified new rail
infrastructure expenditure.
Sec. 11. To obtain a credit under this chapter, a taxpayer must
claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department. The taxpayer
shall submit to the department all information that the department
determines is necessary for the allowance of the credit provided by
this chapter.
Sec. 12. (a) If the credit provided by this chapter exceeds a
taxpayer's state tax liability for the taxable year for which the
credit is first claimed, the excess may be carried over to succeeding
taxable years and used as a credit against the tax otherwise due
and payable by the taxpayer under IC 6-3 during those taxable
years. Each time that the credit is carried over to a succeeding
taxable year, the credit is to be reduced by the amount that was
used as a credit during the immediately preceding taxable year.
The credit provided by this chapter may be carried forward and
applied to succeeding taxable years for five (5) taxable years
following the unused credit year.
(b) A taxpayer is not entitled to any carryback or refund of any
unused credit.
Sec. 13. (a) A taxpayer may assign any part of the credit that the
taxpayer may claim under this chapter. A credit that is assigned
under this section remains subject to this chapter. If a taxpayer
assigns a part of a credit during a taxable year, the assignee may
not subsequently assign all or part of the credit to another
taxpayer. A taxpayer may make only one (1) assignment of a
credit.
(b) An assignment of a credit must be in writing, and both the
taxpayer and assignee shall report the assignment on the
taxpayer's and assignee's state tax returns for the year in which the
assignment is made, in the manner prescribed by the department.
A taxpayer may not receive value in connection with an assignment
under this section that exceeds the value of the part of the credit
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assigned.
(c) If the transferor is a tax exempt entity, the transfer must be
completed on or before the date that is one (1) year after the close
of the tax year for which the credit was certified. As used in this
subsection, "tax exempt entity" means a government agency or an
organization that is recognized as exempt under section 501(c)(3)
of the Internal Revenue Code.
Sec. 14. (a) For each state fiscal year beginning after June 30,
2025, the aggregate amount of state tax credits permitted:
(1) for qualified railroad expenditures allowed under this
chapter may not exceed nine million five hundred thousand
dollars ($9,500,000); and
(2) for qualified new rail infrastructure expenditures allowed
under this chapter may not exceed five million dollars
($5,000,000).
(b) Not later than June 15, 2026, and not later than June 15 each
year thereafter, the department shall report to the Indiana
department of transportation and the state comptroller the total
amount of state tax credits certified for the immediately preceding
taxable year under section 8(c) of this chapter.
Sec. 15. This chapter expires December 31, 2027.
SECTION 3. IC 6-3.5-4-2, AS AMENDED BY P.L.236-2023,
SECTION 69, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. (a) An adopting entity of any county may,
subject to the limitation imposed by subsection (e), adopt an ordinance
to impose a county vehicle excise tax in accordance with this chapter
on each vehicle that is subject to the vehicle excise tax under IC 6-6-5
and that is registered in the county.
(b) If a county does not use a transportation asset management plan
approved by the Indiana department of transportation, the adopting
entity of the county may impose the surtax either:
(1) at a rate of not less than two percent (2%) nor more than ten
percent (10%); or
(2) at a specific amount of at least seven dollars and fifty cents
($7.50) and not more than twenty-five dollars ($25).
However, the surtax on a vehicle may not be less than seven dollars and
fifty cents ($7.50). The adopting entity shall state the surtax rate or
amount in the ordinance which imposes the tax.
(c) Except as provided in subsection (i), if a county uses a
transportation asset management plan approved by the Indiana
department of transportation, the adopting entity of the county may
impose the surtax either:
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(1) at a rate of at least two percent (2%) and not more than twenty
percent (20%); or
(2) at a specific amount of at least seven dollars and fifty cents
($7.50) and not more than fifty dollars ($50).
However, the surtax on a vehicle may not be less than seven dollars and
fifty cents ($7.50). The adopting entity shall state the surtax rate or
amount in the ordinance that imposes the tax.
(d) Subject to the limits and requirements of this section and except
as provided in IC 6-6-5-0.5(2), the adopting entity may do any of the
following:
(1) Impose the county vehicle excise tax at the same rate or
amount on each vehicle that is subject to the tax.
(2) Impose the county vehicle excise tax on vehicles subject to the
tax at one (1) or more different rates based on the class of vehicle
listed in IC 6-6-5-2(a).
(e) The adopting entity may not adopt an ordinance to impose the
surtax unless it concurrently adopts an ordinance under IC 6-3.5-5 to
impose the wheel tax.
(f) Notwithstanding any other provision of this chapter or
IC 6-3.5-5, ordinances adopted by a county council before June 1,
2013, to impose or change the county vehicle excise tax and the annual
wheel tax in the county remain in effect until the ordinances are
amended or repealed under this chapter or IC 6-3.5-5.
(g) Except as provided under section 7.5 of this chapter (before its
expiration on December 31, 2023) and subject to subsection (h), a
county vehicle excise tax imposed by this chapter for a vehicle is due
and shall be paid each year at the time the vehicle is registered.
(h) If the county vehicle excise tax imposed by this chapter was not
paid for one (1) or more preceding years, the bureau may collect only
the county vehicle excise tax imposed by this chapter for the:
(1) registration year immediately preceding the current
registration year;
(2) current registration year; and
(3) registration year immediately following the current
registration year.
(i) Beginning July 1, 2025, if a county containing a consolidated
city uses a transportation asset management plan approved by the
Indiana department of transportation, the adopting entity of the
county may impose the surtax either:
(1) at a rate of at least two percent (2%) and not more than
twenty percent (20%); or
(2) at a specific amount of at least seven dollars and fifty cents
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($7.50) and not more than one hundred fifty dollars ($150).
However, the surtax on a vehicle may not be less than seven dollars
and fifty cents ($7.50). The adopting entity shall state the surtax
rate or amount in the ordinance that imposes the tax.
SECTION 4. IC 6-3.5-4-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 12. (a) Except as
provided in subsection (b), in the case of a county that contains a
consolidated city, the city-county council may appropriate money
derived from the surtax to the department of transportation established
by IC 36-3-5-4 for use by the department under law. The city-county
council may not appropriate money derived from the surtax for any
other purpose.
(b) Beginning July 1, 2025, the city-county council must
appropriate money derived from the surtax for the purposes
allowed under IC 8-14-1-4(c).
SECTION 5. IC 6-3.5-5-2, AS AMENDED BY P.L.178-2019,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. (a) The adopting entity of any county may,
subject to the limitation imposed by subsection (b), adopt an ordinance
to impose a county wheel tax in accordance with this chapter on each
vehicle that:
(1) is included in one (1) of the classes of vehicles listed in
section 3 of this chapter;
(2) is not exempt from the wheel tax under section 4 of this
chapter; and
(3) is registered in the county.
(b) The adopting entity of a county may not adopt an ordinance to
impose the wheel tax unless it concurrently adopts an ordinance under
IC 6-3.5-4 to impose the county vehicle excise tax.
(c) The adopting entity may impose the wheel tax at a different rate
for each of the classes of vehicles listed in section 3 of this chapter. In
addition, the adopting entity may establish different rates within the
classes of buses, semitrailers, trailers, tractors, and trucks based on
weight classifications of those vehicles that are established by the
bureau of motor vehicles for use throughout Indiana. However, Except
as otherwise provided in subsection (f), the wheel tax rate for a
particular class or weight classification of vehicles:
(1) may not be less than five dollars ($5) and may not exceed
forty dollars ($40), if the county does not use a transportation
asset management plan approved by the Indiana department of
transportation; or
(2) may not be less than five dollars ($5) and may not exceed
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eighty dollars ($80), if the county uses a transportation asset
management plan approved by the Indiana department of
transportation.
The adopting entity shall state the initial wheel tax rates in the
ordinance that imposes the tax.
(d) Subject to subsection (e), a wheel tax imposed by this chapter
for a vehicle is due and shall be paid each year at the time the vehicle
is registered.
(e) If the county wheel tax imposed by this chapter was not paid for
one (1) or more preceding years, the bureau may collect only the
county wheel tax imposed by this chapter for the:
(1) registration year immediately preceding the current
registration year;
(2) current registration year; and
(3) registration year immediately following the current
registration year.
(f) Beginning July 1, 2025, if a county containing a consolidated
city uses a transportation asset management plan approved by the
Indiana department of transportation, the wheel tax rate for a
particular class or weight classification of vehicles may not be less
than five dollars ($5) and may not exceed two hundred forty
dollars ($240).
SECTION 6. IC 6-3.5-5-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 14. (a) Except as
provided in subsection (b), in the case of a county that contains a
consolidated city, the city-county council may appropriate money
derived from the wheel tax to:
(1) the department of transportation established by IC 36-3-5-4
for use by the department under law; or
(2) an authority established under IC 36-7-23.
(b) Beginning July 1, 2025, the city-county council must
appropriate money derived from the wheel tax for the purposes
allowed under IC 8-14-1-4(c).
(b) (c) The city-county council may not appropriate money derived
from the wheel tax for any other purpose.
SECTION 7. IC 8-14-1-4, AS AMENDED BY P.L.179-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) The funds allocated to the respective
counties of the state from the motor vehicle highway account shall
annually be budgeted as provided by law, and, when distributed shall
be used for construction, reconstruction, preservation, and maintenance
of the highways of the respective counties, including highways which
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traverse the streets of incorporated towns, the cost of the repair and
maintenance of which prior to the tenth day of September, 1932, was
paid from the county gravel road repair fund excepting where the
department is charged by law with the maintenance or construction of
any such highway so traversing such streets. Subject to subsection (b),
any surplus existing in the funds at the end of the year shall thereafter
continue as a part of the highway funds of the said counties and shall
be rebudgeted and used as already provided in this chapter. The
purchase, rental and repair of highway equipment, painting of bridges
and acquisition of grounds for erection and construction of storage
buildings, acquisition of rights of way and the purchase of fuel oil, and
supplies necessary to the performance of construction, reconstruction,
preservation, and maintenance of highways, shall be paid out of the
highway account of the various counties.
(b) Except as provided in subsection (c) and section 4.1 of this
chapter, for funds distributed to a county from the motor vehicle
highway account, the county shall use at least fifty percent (50%) of the
money for the construction, reconstruction, and preservation of the
county's highways.
(c) This subsection applies to a county containing a consolidated
city. For funds distributed to a county from the motor vehicle highway
account, the county shall use at least sixty-five percent (65%) of the
money for the construction, reconstruction, and preservation of the
county's highways.
SECTION 8. IC 8-14-1-4.1 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 4.1. (a) This section applies:
(1) beginning after June 30, 2026; and
(2) to all counties except a county containing a consolidated
city as described in section 4(c) of this chapter and only if the
county uses the PASER rating system.
(b) As used in this section, "PASER" refers to the pavement
surface evaluation and rating system used as part of a
transportation asset management plan submitted to the local
technical assistance program at Purdue University.
(c) If in the preceding calendar year:
(1) a county's highways have an average PASER rating of at
least six (6); and
(2) not more than fifteen percent (15%) of the county's
highways are in failed condition, as represented by a PASER
rating of one (1) or two (2);
the county shall use at least forty percent (40%) of the money
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distributed from the motor vehicle highway account for the
construction, reconstruction, and preservation of the county's
highways.
SECTION 9. IC 8-14-1-5, AS AMENDED BY P.L.179-2023,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) Subject to subsection (c), all funds allocated
to cities and towns from the motor vehicle highway account shall be
used by the cities and towns for the construction, reconstruction,
preservation, repair, maintenance, oiling, sprinkling, snow removal,
weed and tree cutting and cleaning of their highways as herein defined,
and including also any curbs, and the city's or town's share of the cost
of the separation of the grades of crossing of public highways and
railroads, the purchase or lease of highway construction, preservation,
and maintenance equipment, the purchase, erection, operation and
maintenance of traffic signs and signals, and safety zones and devices,
and the painting of surfaces in highways for purposes of safety and
traffic regulation. All of such funds shall be budgeted as provided by
law.
(b) In addition to purposes for which funds may be expended under
subsection (a), monies allocated to cities and towns under this chapter
may be expended for the payment of principal and interest on bonds
sold primarily to finance road, street, or thoroughfare projects.
(c) Except as provided in subsection (d) and section 5.1 of this
chapter, for funds distributed to a city or town from the motor vehicle
highway account, the city or town shall use at least fifty percent (50%)
of the money for the construction, reconstruction, and preservation of
the city's or town's highways.
(d) This subsection applies to a consolidated city. For funds
distributed to a consolidated city from the motor vehicle highway
account, the consolidated city shall use at least sixty-five percent (65%)
of the money for the construction, reconstruction, and preservation of
the consolidated city's highways.
SECTION 10. IC 8-14-1-5.1 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 5.1. (a) This section applies:
(1) beginning after June 30, 2026; and
(2) to all cities and towns except a consolidated city as
described in section 5(d) of this chapter and only if the city or
town uses the PASER rating system.
(b) As used in this section, "PASER" refers to the pavement
surface evaluation and rating system used as part of a
transportation asset management plan submitted to the local
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technical assistance program at Purdue University.
(c) If in the preceding calendar year:
(1) a city or town's highways have an average PASER rating
of at least six (6); and
(2) not more than fifteen percent (15%) of the city or town's
highways are in failed condition, as represented by a PASER
rating of one (1) or two (2);
the city or town shall use at least forty percent (40%) of the money
distributed from the motor vehicle highway account for the
construction, reconstruction, and preservation of the city or town's
highways.
SECTION 11. IC 8-14-3-3, AS AMENDED BY P.L.10-2019,
SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) As used in this section, "PASER" refers
to the pavement surface evaluation and rating system used as part
of a transportation asset management plan submitted to the local
technical assistance program at Purdue University.
(b) There is annually appropriated two hundred fifty thousand
dollars ($250,000) from the motor vehicle highway account to the
department to develop and maintain a centralized electronic statewide
asset management data base that may be used to aggregate data on
local road conditions. The data base shall be developed in cooperation
with the department and the office of management and budget.
(c) The department, in coordination with the local technical
assistance program at Purdue University, shall administer:
(1) a PASER certification program for PASER raters
submitting data to the statewide asset management data base;
and
(2) a quality assurance program for PASER data, consisting
of a team of certified PASER raters throughout the state.
SECTION 12. IC 8-14-9-2.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 2.5. (a) As used in this chapter, "low water crossing"
means a public road waterway crossing:
(1) other than a bridge where construction improvements
have been made in the stream, river, or lake bed to provide a
firm surface for vehicles to travel across the water course;
and
(2) that is designed and constructed to be passable to traffic
most of the year during periods of ordinary stream flow but
is impassable to traffic during periods of high water.
(b) As used in this chapter, "low water crossing project" means
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a project that may consist of one (1) or more of the following:
(1) Installing appropriate road signs to warn vehicle drivers
as they approach a low water crossing.
(2) Replacing damaged, undersized, perched, and blocked
road structures in a low water crossing with structures that
will accommodate a greater quantity of stream flow under the
road.
(3) Replacing a low water crossing with a bridge.
SECTION 13. IC 8-14-9-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 5. (a) Whenever the
local county road and bridge board determines that it is necessary for
the general welfare of the persons residing within the local county road
and bridge district and that it will be of public utility and benefit to the
property in the district to carry out:
(1) a project of construction, reconstruction, or operation:
(A) of roads; or
(B) of bridges; or
(C) of both roads and bridges; or
(2) a low water crossing project;
within the district, the board shall adopt a resolution stating the
necessity of the project and the intent of the district to proceed with the
project.
(b) As a part of the resolution, the local county road and bridge
board shall:
(1) adopt preliminary or final plans and specifications for the
entire project; and
(2) determine the estimated cost of all work and all acquisitions
necessary to carry out the project.
SECTION 14. IC 8-14.5-6-1, AS AMENDED BY P.L.218-2017,
SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. Except as provided in sections 2 and 5 of this
chapter, the authority may, by resolution, after budget committee
review, issue and sell bonds or notes of the authority for the purpose
of providing funds to carry out the provisions of this article with
respect to the construction of a project or projects or the refunding of
any bonds or notes, together with any reasonable costs associated with
a refunding. However, except as provided in IC 8-15.5-5-6.1, the
authority may not issue any bonds or notes for the construction of a
project:
(1) after July 1, 2007, for a project that is not a railroad crossing
upgrade project described in IC 8-14.5-8; and
(2) after June 30, 2025, for a railroad crossing upgrade project
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described in IC 8-14.5-8.
The amount of the bonds or notes issued for purposes of subdivision
(2) a railroad crossing upgrade project described in IC 8-14.5-8
may not cause the annual payments on all the bonds and notes for this
purpose to exceed ten million dollars ($10,000,000).
SECTION 15. IC 8-14.5-7-5, AS ADDED BY P.L.246-2005,
SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. The authority may, by resolution, before July
1, 2009, after budget committee review, issue grant anticipation
revenue bonds or notes for any purpose that is authorized by
IC 8-14.5-6 and for which the department may use federal highway
revenues.
SECTION 16. IC 8-15-3-36, AS ADDED BY P.L.218-2017,
SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 36. (a) Before July 1, 2017, the department
shall submit a request to the Federal Highway Administration for a
waiver to toll lanes on interstate highways. If
(1) a waiver is granted under this subsection; and
(2) the department, with the approval of the governor, decides to
establish toll lanes, the department shall submit a request to
the Federal Highway Administration for a waiver to toll lanes
on interstate highways. If a waiver is granted under this
section, toll lanes may be established in accordance with this
title. under the waiver;
(b) The first toll lanes established on an interstate highway must be
located at least seventy-five (75) miles from an interstate highway or
bridge on which travel is subject to tolling as of July 1, 2017. This
subsection does not apply if a waiver is applied for under
subsection (a) after January 1, 2025.
(b) The department shall engage an outside consulting firm to
conduct a feasibility study on tolling the interstate highways, including
revenue projections based on an analysis of optimal tolling rates,
vehicle counts and types by state of registration, and traffic diversion.
(c) The feasibility study described in subsection (b) must consider
the following:
(1) The economic impact and feasibility of tolling particular
interstate highways.
(2) The ability to provide discounts, credits, or otherwise lessen
the impact of tolling on local, commuter, and in-state operators.
(3) Information related to the number and impact of out-of-state
operators expected to use interstate highways in Indiana.
(4) The rationale for the federal authorization of any tolling plan
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that may be submitted by the state to the United States
Department of Transportation.
(5) The optimal levels at which tolls may reasonably be expected
to be set for passenger vehicles and other vehicles.
(6) Appropriate tolling rules regarding population center local
traffic.
(7) The state's ability to enter into monetization agreements or
long term contracts for initial construction, long term
maintenance, installation, and operation of tolling facilities.
(8) Any estimates of which highway facilities would be conducive
to tolling operations.
(9) Goals for participation by women-owned and minority owned
business enterprises.
(10) Ways to maximize the use of Indiana workers and products
made in Indiana.
(d) A written report on the feasibility study shall be delivered before
November 1, 2017, to the governor, the legislative council, and the
budget committee. The report to the legislative council must be in an
electronic format under IC 5-14-6. This subsection expires December
31, 2017.
(e) If, after review of the feasibility study, the governor determines
that tolling is the best means of achieving major interstate system
improvements in Indiana, the governor shall create a strategic plan for
tolling interstate highways and submit the strategic plan to the budget
committee before December 1, 2018.
SECTION 17. IC 8-15.5-1-2, AS AMENDED BY P.L.19-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. (a) This article contains full and complete
authority for public-private agreements between the authority, a private
entity, and, where applicable, a governmental entity. Except as
provided in this article, no law, procedure, proceeding, publication,
notice, consent, approval, order, or act by the authority or any other
officer, department, agency, or instrumentality of the state or any
political subdivision is required for the authority to enter into a
public-private agreement with a private entity under this article, or for
a project that is the subject of a public-private agreement to be
constructed, acquired, maintained, repaired, operated, financed,
transferred, or conveyed.
(b) Before the authority or the department may issue a request for
proposals for or enter into a public-private agreement under this article
that would authorize an operator to impose user fees for the operation
of motor vehicles on all or part of a toll road project, the general
HEA 1461 — Concur 15
assembly must adopt a statute authorizing the imposition of user fees.
However, during the period beginning July 1, 2011, and ending June
30, 2031, the general assembly is not required to enact a statute
authorizing the authority or the department to issue a request for
proposals or enter into a public-private agreement to authorize an
operator to impose user fees for the operation of motor vehicles on all
or part of the following projects:
(1) A project on which construction begins after June 30, 2011,
not including any part of Interstate Highway 69 other than a part
described in subdivision (3).
(2) The addition of toll lanes, including high occupancy toll lanes,
to a highway, roadway, or other facility in existence on July 1,
2011, if the number of nontolled lanes on the highway, roadway,
or facility as of July 1, 2011, does not decrease due to the addition
of the toll lanes.
(3) A project that is located within a metropolitan planning area
(as defined by 23 U.S.C. 134) and that connects the state of
Indiana with the commonwealth of Kentucky.
However, neither the authority nor the department may issue a request
for proposals for a public-private agreement under this article that
would authorize an operator to impose user fees unless the budget
committee has reviewed the request for proposals.
(c) Except as provided in subsection (b), Before the authority or an
operator may carry out any of the following activities under this article,
the general assembly must enact a statute authorizing that activity:
(1) Imposing user fees on motor vehicles for use of Interstate
Highway 69.
(2) Except for a project for which a waiver is granted under
IC 8-15-3-36, imposing user fees on motor vehicles for use of a
nontolled highway, roadway, or other facility in existence or
under construction on July 1, 2011, including nontolled interstate
highways, U.S. routes, and state routes.
(d) The general assembly is not required to enact a statute
authorizing the authority or the department to issue a request for
proposals or enter into a public-private agreement for a freeway
project.
(e) The authority may enter into a public-private agreement for a
facility project if the general assembly, by statute, authorizes the
authority to enter into a public-private agreement for the facility
project.
(f) As permitted by subsection (e), the general assembly authorizes
the authority to enter into public-private agreements for a state park inn
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and related improvements at Potato Creek State Park.
SECTION 18. IC 8-15.7-1-5, AS AMENDED BY P.L.19-2023,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) This article contains full and complete
authority for agreements and leases with private entities to carry out the
activities described in this article. Except as provided in this article, no
procedure, proceeding, publication, notice, consent, approval, order, or
act by the authority, the department, or any other state or local agency
or official is required for the department to enter into a public-private
agreement with a private entity under this article for a project to be
constructed, maintained, repaired, or operated, and no law to the
contrary affects, limits, or diminishes the authority for agreements and
leases with private entities, except as provided by this article. However,
this article may not be construed to:
(1) limit the power of the authority, the department, or a private
entity to enter an agreement; or
(2) impose any procedural or substantive requirements on the
authority, the department, or a private entity;
concerning a project (as defined by IC 8-15.5-2-7) carried out under
IC 8-15.5.
(b) Notwithstanding any other law, and except as provided in
subsection (d), before the department, the authority, or an operator may
enter into public-private agreements that impose user fees on motor
vehicles for use of:
(1) Interstate Highway 69; or
(2) except for a project for which a waiver is granted under
IC 8-15-3-36, nontolled highways, roadways, or other facilities in
existence or under construction on July 1, 2011, including
nontolled interstate highways, U.S. routes, and state routes;
the general assembly must enact a statute authorizing that activity.
(c) Notwithstanding any other law, the department or the authority
may enter into a public-private agreement concerning a project
consisting of a passenger or freight railroad system described in
IC 8-15.7-2-14(a)(4). Such an agreement is subject to review and
appropriation by the general assembly. However, this subsection does
not prohibit the department from:
(1) conducting preliminary studies that the department considers
necessary to determine the feasibility of such a project; or
(2) issuing a request for qualifications or a request for proposals,
or both, under IC 8-15.7-4 for such a project.
(d) During the period beginning July 1, 2011, and ending June 30,
2031, the general assembly is not required to enact a statute authorizing
HEA 1461 — Concur 17
the department, the authority, or an operator to issue a request for
proposals for, or enter into, a public-private agreement that imposes
user fees for the operation of motor vehicles for the following projects:
(1) A project on which construction begins after June 30, 2011,
not including any part of Interstate Highway 69 other than a part
described in subdivision (3).
(2) The addition of toll lanes, including high occupancy toll lanes,
to a highway, roadway, or other facility in existence on July 1,
2011, if the number of nontolled lanes on the highway, roadway,
or facility as of July 1, 2011, does not decrease due to the addition
of the toll lanes.
(3) A project that is located within a metropolitan planning area
(as defined by 23 U.S.C. 134) and that connects the state of
Indiana with the commonwealth of Kentucky.
(e) (d) The following apply:
(1) The authority shall be a party to any public-private agreement
entered into pursuant to this article that requires payments to be
made to an operator after the operator receives final payment for
construction.
(2) The authority may issue bonds or refunding bonds under
IC 5-1.2-4 to provide funds for any amounts identified under this
article but is not required to comply with IC 8-9.5-8-10.
SECTION 19. IC 8-16-3-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. Notwithstanding
IC 8-18-8-5, all municipal corporations and county executives may
provide a cumulative bridge fund to provide funds for the cost of
construction, maintenance, and repair of bridges, approaches, small
structures, culverts, and grade separations under their jurisdiction.
However, in those counties in which a cumulative bridge fund has been
established, the county executive is responsible for providing funds for
all bridges, including those in municipalities, within the counties
except those bridges on the state highway system. The county executive
may use this fund for making county wide bridge inspection and safety
ratings of all bridges in a county not on the state highway system. The
inspection and safety ratings shall meet all the criteria of the National
Bridge Inspection Standards promulgated by the Federal Highway
Administration, U.S. Department of Transportation and shall be
supervised and approved by a competent, qualified engineer, registered
in the state.
SECTION 20. IC 8-17-1-0.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 0.3. As used in this chapter, "bridge" means a
HEA 1461 — Concur 18
structure, including supports, erected over a depression or an
obstruction, such as water, a highway, or a railway that has:
(1) a track or passageway for carrying traffic or moving
loads; and
(2) an opening measured along the center of the roadway of
more than twenty (20) feet between under copings of
abutments or spring lines of arches or extreme ends of
opening for multiple boxes.
SECTION 21. IC 8-17-1-46 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 46. (a) This section does not apply to an eligible
county (as defined in IC 8-16-3.1-1) that complies with the
provisions in IC 8-16-3.1-4.
(b) A county is responsible for the construction, reconstruction,
maintenance, and inspection of a bridge that meets the following
requirements:
(1) Is located in the county, including a bridge that is located
within the corporate limits of a municipality.
(2) Has a span length greater than twenty (20) feet.
(3) Is not part of the state highway system.
(4) Meets either of the following:
(A) The bridge was inspected by the county before January
1, 2024.
(B) The bridge was added to the county inventory by the
county executive after December 31, 2024.
(c) A municipality is responsible for the construction,
reconstruction, and maintenance of a bridge that meets the
following requirements:
(1) Is located within the corporate limits of the municipality.
(2) Has a span length equal to or less than twenty (20) feet.
(3) Is not part of the state highway system.
(d) A new bridge that may be the responsibility of the county
under subsection (b) must be developed in consultation with the
county.
SECTION 22. IC 8-17-4.1-1, AS AMENDED BY P.L.185-2018,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. (a) This chapter applies to:
(1) all counties; and
(2) municipalities with a population of at least fifteen thousand
(15,000). five thousand (5,000).
(b) As used in this chapter, "governing body" means the county
executive, the city executive, or the town legislative body.
HEA 1461 — Concur 19
SECTION 23. IC 8-23-7-22, AS AMENDED BY P.L.19-2023,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 22. (a) Subject to subsection (b), The department
may, after issuing an order and receiving the governor's approval,
determine that a state highway should become a tollway. After the
order becomes effective, the department shall maintain and operate the
tollway and levy and collect tolls as provided in IC 8-15-3 or enter into
a public-private agreement with an operator with respect to the tollway
under IC 8-15.7. Before issuing an order under this section, the
department shall submit to the governor a plan to bring the tollway to
the current design standards of the department for new state highways
within a specified period. The specified period may not exceed five (5)
years.
(b) Before the governor, the department, or an operator may carry
out any of the following activities under this section, the general
assembly must enact a statute authorizing that activity:
(1) Determine that a highway that is in existence or under
construction on July 1, 2011, should become a tollway.
(2) Impose tolls on motor vehicles for use of Interstate Highway
69.
(c) Notwithstanding subsection (b), during the period beginning July
1, 2011, and ending June 30, 2031, the general assembly is not required
to enact a statute authorizing the governor, the department, or an
operator to determine that all or part of the following projects should
become a tollway:
(1) A project on which construction begins after June 30, 2011,
not including any part of Interstate Highway 69 other than a part
described in subdivision (3).
(2) The addition of toll lanes, including high occupancy toll lanes,
to a highway, roadway, or other facility in existence on July 1,
2011, if the number of nontolled lanes on the highway, roadway,
or facility as of July 1, 2011, does not decrease due to the addition
of the toll lanes.
(3) A project that is located within a metropolitan planning area
(as defined by 23 U.S.C. 134) and that connects the state of
Indiana with the commonwealth of Kentucky.
SECTION 24. IC 8-23-7-23, AS AMENDED BY P.L.94-2015,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 23. (a) Subject to subsection (c), The department
may, after issuing an order and receiving the governor's approval,
determine that a state highway should become a toll road. An order
under this section does not become effective unless the authority adopts
HEA 1461 — Concur 20
a resolution to accept the designated state highway, or part of the
highway, as a toll road project under the conditions contained in the
order. An order issued by the department under this section must set
forth the conditions upon which the transfer of the state highway, or
part of the highway, to the authority must occur, including the
following:
(1) The consideration, if any, to be paid by the authority to the
department.
(2) A requirement that the authority:
(A) enter into a contract or lease with the department with
respect to the toll road project under IC 8-9.5-8-7 or
IC 8-9.5-8-8; or
(B) enter into a public-private agreement with an operator with
respect to the toll road under IC 8-15.5.
(b) To complete a transfer under this section, the department must,
with the governor's approval, execute a certificate describing the real
and personal property constituting or to be transferred with the state
highway that is to become a toll road project. Upon delivery of the
certificate to the authority, the real and personal property described in
the certificate is under the jurisdiction and control of the authority.
(c) Before the authority or an operator may carry out any of the
following activities under this section, the general assembly must enact
a statute authorizing that activity:
(1) Imposing tolls on motor vehicles for use of Interstate Highway
69.
(2) Except for a project for which a waiver is granted under
IC 8-15-3-36, imposing tolls on motor vehicles for use of a
nontolled highway, roadway, or other facility in existence or
under construction on July 1, 2011, including nontolled interstate
highways, U.S. routes, and state routes.
SECTION 25. IC 8-23-23-6 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 6. The commissioner shall ensure that the department
makes information available to county boards of commissioners
and county highway departments about funding from federal and
private sources that might be available to the counties for projects
involving the reconstruction or replacement of low water crossings
(as defined in IC 8-23-30-1(d)), including the following:
(1) The federal Surface Transportation Block Grant Program
(23 U.S.C. 133).
(2) The United States Fish and Wildlife Service.
SECTION 26. IC 8-23-30-1, AS ADDED BY P.L.146-2016,
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SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. (a) The following definitions apply throughout
As used in this chapter, (1) "eligible project" means either of the
following:
(1) A project:
(A) that is undertaken by a local unit;
(B) that repairs or increases the capacity of local roads and
bridges; and
(C) that is part of the local unit's transportation asset
management plan.
(2) A project that:
(A) is undertaken by a local unit; and
(B) reduces the risk to human life from low water
crossings.
(2) (b) As used in this chapter, "fund" refers to the local road and
bridge matching grant fund established by section 2 of this chapter.
(3) (c) As used in this chapter, "local unit" means a county or
municipality.
(d) As used in this chapter, "low water crossing" means a public
road waterway crossing:
(1) other than a bridge where construction improvements
have been made in the stream, river, or lake bed to provide a
firm surface for vehicles to travel across the water course;
and
(2) that is designed and constructed to be passable to traffic
most of the year during periods of ordinary stream flow but
is impassable to traffic during periods of high water.
(4) (e) As used in this chapter, "transportation asset management
plan" includes planning for drainage systems and rights-of-way that
affect transportation assets.
(f) As used in this chapter, "wheel tax" means the tax imposed
in an ordinance adopted under:
(1) IC 6-3.5-5, in the case of a county; and
(2) IC 6-3.5-11, in the case of a municipality.
SECTION 27. IC 8-23-30-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 1.5. A project described in section
1(a)(2) of this chapter may consist of one (1) or more of the
following:
(1) Installing appropriate road signs to warn vehicle drivers
as they approach low water crossings.
(2) Replacing damaged, undersized, perched, and blocked
HEA 1461 — Concur 22
road structures with structures that will accommodate a
greater quantity of stream flow under the road.
(3) Replacing low water crossings with bridges.
SECTION 28. IC 8-23-30-2, AS AMENDED BY P.L.165-2021,
SECTION 134, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The local road and bridge
matching grant fund is established to provide matching grants to local
units for eligible projects.
(b) The department shall administer the fund.
(c) The fund consists of the following:
(1) Appropriations by the general assembly.
(2) Interest deposited in the fund under subsection (d).
(3) Money deposited in or transferred to the fund from any other
source.
(d) The treasurer of state shall invest money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that accrues
from these investments shall be deposited in the fund.
(e) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
(f) Not later than June 1, 2025, the department shall report to
the state comptroller the amount of matching grants awarded by
the department from the fund in the state fiscal year beginning
July 1, 2024, and ending June 30, 2025, that the department will
not distribute before July 1, 2025.
(g) The state comptroller shall determine the balance of the
money in the fund on June 15, 2025, and on June 15 of each year
thereafter. After determining the balance of money in the fund
under this subsection, the money in the fund must be allocated in
accordance with subsection (h), transferred in accordance with
subsections (i) and (j), and distributed in accordance with
subsection (k).
(h) After determining the balance of the money in the fund
under subsection (g), the money in the fund must first be allocated
as follows:
(1) On June 30, 2025, the department must allocate the total
of the amount determined under subsection (f) plus one
hundred million dollars ($100,000,000) of money in the fund
to make matching grants in the state fiscal year beginning
July 1, 2025, and ending June 30, 2026, to all local units. The
department may not award more than one hundred million
dollars ($100,000,000) of matching grants in the state fiscal
HEA 1461 — Concur 23
year beginning July 1, 2025, and ending June 30, 2026.
(2) On June 30, 2026, and June 30 of each year thereafter, the
department must allocate the first one hundred million dollars
($100,000,000) of money in the fund to make matching grants
in the next state fiscal year to all local units.
(i) After the department allocates the money in the fund under
subsection (h), the state comptroller shall make the following five
(5) transfers:
(1) On June 30, 2026, a transfer of:
(A) to the state general fund, the total amount of the state
tax credits certified for 2025 by the department of state
revenue under IC 6-3.1-38.1-8(c); and
(B) to the department, an amount equal to twenty million
dollars ($20,000,000) minus the amount under clause (A)
for deposit in the state highway road construction and
improvement fund established under IC 8-14-10 for the
department's use in financing a railroad crossing upgrade
project as described in IC 8-14.5-8.
(2) On June 30, 2027, a transfer of:
(A) to the state general fund, the total amount of the state
tax credits certified for 2026 by the department of state
revenue under IC 6-3.1-38.1-8(c); and
(B) to the department, an amount equal to twenty million
dollars ($20,000,000) minus the amount under clause (A)
for deposit in the state highway road construction and
improvement fund established under IC 8-14-10 for the
department's use in financing a railroad crossing upgrade
project as described in IC 8-14.5-8.
(3) On June 30, 2028, a transfer of:
(A) to the state general fund, the total amount of the state
tax credits certified for 2027 by the department of state
revenue under IC 6-3.1-38.1-8(c); and
(B) to the department, an amount equal to twenty million
dollars ($20,000,000) minus the amount under clause (A)
for deposit in the state highway road construction and
improvement fund established under IC 8-14-10 for the
department's use in financing a railroad crossing upgrade
project as described in IC 8-14.5-8.
(4) On June 30, 2029, a transfer of twenty million dollars
($20,000,000) to the department for deposit in the state
highway road construction and improvement fund established
under IC 8-14-10 for the department's use in financing a
HEA 1461 — Concur 24
railroad crossing upgrade project as described in IC 8-14.5-8.
(5) On June 30, 2030, a transfer of twenty million dollars
($20,000,000) to the department for deposit in the state
highway road construction and improvement fund established
under IC 8-14-10 for the department's use in financing a
railroad crossing upgrade project as described in IC 8-14.5-8.
(j) Beginning on June 30, 2027, and on June 30 of each year
thereafter, after the department allocates the money under
subsection (h) and the state comptroller makes a transfer under
subsection (i), when applicable, the state comptroller shall transfer
fifty million dollars ($50,000,000) of money in the fund to the
consolidated city in Marion County for the construction,
reconstruction, and preservation of the consolidated city's local
streets (as defined in IC 8-14-2-1(9)). The consolidated city in
Marion County shall not use these revenues for:
(1) reducing the capacity of existing roads and streets;
(2) greenways;
(3) bike lanes;
(4) bike trails; and
(5) sidewalks.
One hundred percent (100%) of the money distributed to the
consolidated city under this subsection shall be matched with an
appropriation by the consolidated city. The appropriation required
under this subsection must be new revenue and may not include
revenue allocated to public safety purposes under IC 6-3.6-6.
(k) Beginning on June 30, 2027, and on June 30 of each year
thereafter, after the state comptroller makes a transfer under
subsection (j), the state comptroller shall distribute the remainder
of the money in the fund, as follows:
(1) To be eligible to receive a distribution under this
subsection, a local unit must have:
(A) adopted a wheel tax; and
(B) provided the local technical assistance program at
Purdue University with an updated transportation asset
management plan within the last twelve (12) months.
(2) The distribution to a local unit eligible to receive a
distribution under subdivision (1) must be proportional to the
local unit's share of the total lane mileage for all local units
eligible to receive a distribution under subdivision (1). The
department shall provide to the state comptroller the total
lane mileage for purposes of making the distribution under
this subsection.
HEA 1461 — Concur 25
A local unit may use a distribution made under this subsection only
for eligible projects.
(f) (l) Money in the fund is continuously appropriated for the
purpose of the fund.
(g) (m) Money in the fund may not be transferred, assigned, or
otherwise removed from the fund by the state board of finance, the
budget agency, or any other agency until after budget committee
review, except that for either or both of the following purposes:
(1) The department may distribute funds to a local unit that has
been approved for a grant under this chapter without budget
committee review.
(2) To transfer money in the fund under subsections (i) and (j)
and to make a distribution under subsection (k) without
budget committee review.
SECTION 29. IC 8-23-30-3.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 3.5. In each state fiscal year
beginning after June 30, 2027, a local unit that receives a
distribution under section 2(k) of this chapter may not apply for a
grant under section 2(h) of this chapter in an amount that is
greater than the maximum grant amount set under section 8 of this
chapter minus the amount the local unit received from a
distribution under section 2(k) of this chapter.
SECTION 30. IC 8-23-30-5, AS ADDED BY P.L.146-2016,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. In the evaluation of an application for a grant
applications for grants from the fund for projects described in
section 1(a) of this chapter, the department shall give preference to
projects that are anticipated by the department to have the greatest
regional economic significance for the region in which the local unit is
located.
SECTION 31. IC 8-23-30-6, AS AMENDED BY P.L.218-2017,
SECTION 81, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. If the department approves a grant to a local
unit under this chapter, the required local matching amount by the local
unit is equal to the following applicable percentage of the total cost of
the eligible project:
(1) For a county applicant, the following:
(A) Fifty percent (50%), if the county has a population greater
than or equal to fifty thousand (50,000). fifty-five thousand
(55,000).
(B) Twenty-five Twenty percent (25%), (20%), if the county
HEA 1461 — Concur 26
has a population of less than fifty thousand (50,000). fifty-five
thousand (55,000).
(2) For a city or town applicant, the following:
(A) Fifty percent (50%), if the city or town has a population
greater than or equal to ten thousand (10,000).
(B) Twenty-five Twenty percent (25%), (20%), if the city or
town has a population of less than ten thousand (10,000).
SECTION 32. IC 8-23-30-7, AS AMENDED BY P.L.218-2017,
SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7. The department shall allocate at least fifty
percent (50%) of the amount available to the department to make
grants in a state fiscal year to:
(1) local units that are counties having a population of less
than fifty thousand (50,000); and
(2) local units that are municipalities located in counties having
a population of less than fifty thousand (50,000).
SECTION 33. IC 9-21-5-2, AS AMENDED BY P.L.189-2018,
SECTION 104, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 2. (a) Except when a special hazard
exists that requires lower speed for compliance with section 1 of this
chapter, the slower speed limit specified in this section or established
as authorized by section 3 of this chapter is the maximum lawful speed.
A person may not drive a vehicle on a highway at a speed in excess of
the following maximum limits:
(1) Thirty (30) miles per hour in an urban district.
(2) Fifty-five (55) miles per hour, except as provided in
subdivisions (1), (3), (4), (5), (6), and (7), and (9).
(3) Seventy (70) miles per hour on a highway on the national
system of interstate and defense highways located outside of an
urbanized area (as defined in 23 U.S.C. 101) with a population of
at least fifty thousand (50,000), except as provided in subdivision
(4).
(4) Sixty-five (65) miles per hour for a vehicle (other than a bus)
having a declared gross weight greater than twenty-six thousand
(26,000) pounds on a highway on the national system of interstate
and defense highways located outside an urbanized area (as
defined in 23 U.S.C. 101) with a population of at least fifty
thousand (50,000).
(5) Sixty-five (65) miles per hour on:
(A) U.S. 20 from the intersection of U.S. 20 and County Road
17 in Elkhart County to the intersection of U.S. 20 and U.S. 31
in St. Joseph County;
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(B) U.S. 31 from the intersection of U.S. 31 and U.S. 20 in St.
Joseph County to the boundary line between Indiana and
Michigan; and
(C) a highway classified by the Indiana department of
transportation as an INDOT Freeway.
(6) On a highway that is the responsibility of the Indiana finance
authority established by IC 5-1.2-3:
(A) seventy (70) miles per hour for:
(i) a motor vehicle having a declared gross weight of not
more than twenty-six thousand (26,000) pounds; or
(ii) a bus; or
(B) sixty-five (65) miles per hour for a motor vehicle having
a declared gross weight greater than twenty-six thousand
(26,000) pounds.
(7) Sixty (60) miles per hour on a highway that:
(A) is not designated as a part of the national system of
interstate and defense highways;
(B) has four (4) or more lanes;
(C) is divided into two (2) or more roadways by:
(i) an intervening space that is unimproved and not intended
for vehicular travel;
(ii) a physical barrier; or
(iii) a dividing section constructed to impede vehicular
traffic; and
(D) is located outside an urbanized area (as defined in 23
U.S.C. 101) with a population of at least fifty thousand
(50,000).
(8) Fifteen (15) miles per hour in an alley.
(9) Sixty-five (65) miles per hour on Interstate Highway 465.
(b) A person who violates subsection (a) commits a Class C
infraction.
SECTION 34. IC 34-28-5-5, AS AMENDED BY P.L.19-2023,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) A defendant against whom a judgment is
entered is liable for costs. Costs are part of the judgment and may not
be suspended except under IC 9-30-3-12. Whenever a judgment is
entered against a person for the commission of two (2) or more civil
violations (infractions or ordinance violations), the court may waive the
person's liability for costs for all but one (1) of the violations. This
subsection does not apply to judgments entered for violations
constituting:
(1) Class D infractions; or
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(2) Class C infractions for unlawfully parking in a space reserved
for a person with a physical disability under IC 5-16-9-5 or
IC 5-16-9-8.
(b) If a judgment is entered:
(1) for a violation constituting:
(A) a Class D infraction; or
(B) a Class C infraction for unlawfully parking in a space
reserved for a person with a physical disability under
IC 5-16-9-5 or IC 5-16-9-8; or
(2) in favor of the defendant in any case;
the defendant is not liable for costs.
(c) Except for costs, and except as provided in subsections (e) and
(f) and IC 9-21-5-11(e), the funds collected as judgments for violations
of statutes defining infractions shall be deposited in the state general
fund.
(d) A judgment may be entered against a defendant under this
section or section 4 of this chapter upon a finding by the court that the
defendant:
(1) violated:
(A) a statute defining an infraction; or
(B) an ordinance; or
(2) consents to entry of judgment for the plaintiff upon a pleading
of nolo contendere for a moving traffic violation.
(e) The funds collected for an infraction judgment described in
section 4(h) of this chapter shall be transferred to a dedicated county
fund. The money in the dedicated county fund does not revert to the
county general fund or state general fund and may be used, after
appropriation by the county fiscal body, only for the following
purposes:
(1) To pay compensation of commissioners appointed under
IC 33-33-49.
(2) To pay costs of the county's guardian ad litem program.
(f) The funds collected for an infraction judgment described in
section 4(i) of this chapter shall be transferred to a dedicated toll
revenue fund created as part of a project under IC 8-15.5-1-2(b)(3).
that is located within a metropolitan planning area (as defined by
23 U.S.C. 134) and that connects the state of Indiana with the
commonwealth of Kentucky. The money in the fund does not revert
to the county general fund or state general fund and may be used only
to pay the cost of operating, maintaining, and repairing the tolling
system for a project under IC 8-15.5-1-2(b)(3), that is located within
a metropolitan planning area (as defined by 23 U.S.C. 134) and
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that connects the state of Indiana with the commonwealth of
Kentucky, including major repairs, replacements, and improvements.
SECTION 35. IC 36-6-9-4.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 4.5. As used in this chapter, "unrestricted funds"
means cash reserves that are not:
(1) obligated by a township's following year budget;
(2) committed to a township's capital improvement plan;
(3) encumbered by a contract or purchase order;
(4) restricted for a specific use by state or federal law or other
applicable state or federal rule;
(5) restricted by a contractual obligation; or
(6) restricted by a third-party.
SECTION 36. IC 36-6-9-5, AS ADDED BY P.L.129-2019,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) Before July 1, 2025, this chapter applies to
a township if the total amount of funds in a township's capital
improvement funds exceeds:
(1) one hundred fifty percent (150%) of the township's total
annual budget estimate prepared under IC 6-1.1-17-2 for the
ensuing year; and
(2) two hundred thousand dollars ($200,000).
(b) After June 30, 2025, this chapter applies to all townships.
SECTION 37. IC 36-6-9-7, AS ADDED BY P.L.129-2019,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7. A township that meets the requirements of
section 5 of this chapter must:
(1) adopt a capital improvement plan not later than September 30
2020; of each calendar year; and
(2) submit a copy of the adopted capital improvement plan to the
department of local government finance in the manner prescribed
by the department.
SECTION 38. IC 36-6-9-12 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 12. (a) Beginning July 1, 2025, a township must adopt
a plan on an annual basis. The township must file the plan with the
department of local government finance in the form and manner
prescribed by the department of local government finance.
(b) A plan must include:
(1) the balance of all unrestricted funds that exceed the
township's budget for the following year; and
(2) the purpose for which all unrestricted funds are being
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retained.
SECTION 39. IC 36-6-10 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 10. Township Roads and Infrastructure Fund
Sec. 1. As used in this chapter, "unrestricted funds" has the
meaning set forth in IC 36-6-9-4.5.
Sec. 2. A township shall establish a fund for the improvement
and maintenance of the roads and infrastructure within the
township's boundaries.
Sec. 3. Before a township enters into a written memorandum of
understanding under section 4 of this chapter, the township board
must adopt a resolution in favor of providing money for the
improvement and maintenance of roads and infrastructure.
Sec. 4. A township must enter into a written memorandum of
understanding with a city, town, or county, as applicable, for,
subject to section 5 of this chapter, the transfer of funds from a
fund established under section 2 of this chapter to the city, town,
or county for the purpose of bidding out projects that are:
(1) for the improvement of roads and infrastructure within
the township's boundaries; and
(2) approved by the township.
Funds used for a project under this section must be used solely for
projects for roads and infrastructure that are within the
township's boundaries.
Sec. 5. A transfer of funds from a fund established under section
2 of this chapter for a purpose allowed under this chapter must be
accomplished in the same manner that a township makes transfers
from the rainy day fund as set forth in IC 36-1-8-5.1, except that
the amount of the transfer of unobligated cash balances as
described in IC 36-1-8-5.1(d)(2)(B)(iii) shall contribute thirty
percent (30%) of the balance of all unrestricted funds that exceed
the township's budget for the following year, as provided in the
township's capital improvement plan under IC 36-6-9-12(b)(1).
SECTION 40. IC 36-9-42.2-4.5, AS ADDED BY P.L.218-2017,
SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4.5. As used in this chapter, "transportation asset
management plan" has the meaning set forth in IC 8-23-30-1(4).
IC 8-23-30-1(e).
SECTION 41. [EFFECTIVE JULY 1, 2025] (a) As used in this
SECTION, "department" means the Indiana department of
administration created by IC 4-13-1-2.
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(b) As used in this SECTION, "Indiana road data" means
information, in any form, that:
(1) is controlled or readily accessible by the state of Indiana;
and
(2) can be used to provide information regarding:
(A) road and bridge conditions; and
(B) the deterioration or life cycle status of roads and
bridges.
(c) Not later than October 1, 2025, the department shall issue a
request for information regarding computer technology that can
be used to:
(1) enhance:
(A) the collection of Indiana road data;
(B) the evaluation of Indiana road data; and
(C) the display, visualization, and monitoring of data
concerning:
(i) the condition, maintenance, and repair of; or
(ii) other capital investment in;
Indiana roads based on Indiana road data; and
(2) allow members of the public to voluntarily submit data,
information, or other feedback regarding Indiana road
conditions for purposes of augmenting Indiana road data;
with the goal of better informing Indiana citizens and informing
decision making regarding road and bridge maintenance.
(d) The department shall report the results of the request for
information to:
(1) the legislative council (IC 2-5-1.1-1);
(2) the department; and
(3) the local technical assistance program at Purdue
University.
The information provided to the legislative council under this
subsection must be submitted in an electronic format under
IC 5-14-6.
(e) If the department receives no responses to the request for
information, the department shall report that result under
subsection (d).
(f) This SECTION expires December 31, 2026.
SECTION 42. [EFFECTIVE JULY 1, 2025] (a) The legislative
council is urged to assign to the interim study committee on roads
and transportation established by IC 2-5-1.3-4, during the 2025
legislative interim, the study of appropriate road funding formulas,
including the amount of gas taxes and vehicle registration fees and
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other methods and amounts used to calculate the funding of roads.
(b) This SECTION expires January 1, 2026.
SECTION 43. An emergency is declared for this act.
HEA 1461 — Concur Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
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