§ 8-23-30-2 — Establishment of fund; budget committee review; transfer and distribution of money in fund

(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 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 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.
A local unit may use a distribution made under this subsection only for
eligible projects.
(l) Money in the fund is continuously appropriated for the purpose
of the fund.
(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 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.

Legislative History

As added by P.L.146-2016, SEC.16. Amended by P.L.165-2021, SEC.134; P.L.173-2025, SEC.28.