Introduced Version






HOUSE BILL No. 1286

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-6; IC 8-14-1; IC 9-29-1-1.

Synopsis: Highway funding. Increases the amount of gasoline taxes paid to local governments and the department of transportation. Provides that gasoline taxes, special fuel taxes, and motor carrier fuel taxes deposited in the motor vehicle highway account (MVHA) may not be used to pay any part of the operating expenses of the bureau of motor vehicles (BMV). Removes the requirement that one-half of the amount appropriated for the state police department be deducted from the MVHA fund before making the statutory allocation to cities, towns, counties, and the department of transportation. Provides that the amount of money that the BMV may receive from the MVHA in a state fiscal year may not exceed the amount of fees collected by the BMV and deposited in the MVHA in that state fiscal year.

Effective: July 1, 2013.





Thompson, Morrison, Kersey




    January 14, 2013, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 118th General Assembly (2013)


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.
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HOUSE BILL No. 1286



    A BILL FOR AN ACT to amend the Indiana Code concerning transportation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-6-1.1-801.5; (13)IN1286.1.1. -->     SECTION 1. IC 6-6-1.1-801.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 801.5. (a) The administrator shall transfer one-ninth (1/9) of the taxes that are collected under this chapter to the state highway road construction and improvement fund.
    (b) The administrator shall transfer one-eighteenth (1/18) of the taxes that are collected under this chapter to the state highway fund.
    (c) The administrator shall transfer one-eighteenth (1/18) of the taxes that are collected under this chapter to the auditor of state for distribution to counties, cities, and towns. The auditor of state shall distribute the amounts transferred under this subsection to each of the counties, cities, and towns eligible to receive a distribution from the motor vehicle highway account under IC 8-14-1 and in the same proportion among the counties, cities, and towns as funds are distributed from the motor vehicle highway account under IC 8-14-1. Money distributed under this subsection may be used only for purposes that money distributed from the motor vehicle highway account may be

expended under IC 8-14-1.
    (d) After the transfers required by subsections (a) through (c), the administrator shall transfer the next twenty-five one hundred seventy-five million dollars ($25,000,000) ($175,000,000) of the taxes that are collected under this chapter and received during a period beginning July 1 of a year and ending June 30 of the immediately succeeding year to the auditor of state for distribution in the following manner:
        (1) thirty Twenty-seven and five-tenths percent (30%) (27.5%) to each of the counties, cities, and towns eligible to receive a distribution from the local road and street account under IC 8-14-2 and in the same proportion among the counties, cities, and towns as funds are distributed under IC 8-14-2-4.
        (2) thirty Sixty-two and five-tenths percent (30%) (62.5%) to each of the counties, cities, and towns eligible to receive a distribution from the motor vehicle highway account under IC 8-14-1 and in the same proportion among the counties, cities, and towns as funds are distributed from the motor vehicle highway account under IC 8-14-1. and
        (3) forty Ten percent (40%) (10%) to the Indiana department of transportation.
    (e) The auditor of state shall hold all amounts of collections received under subsection (d) from the administrator that are made during a particular month and shall distribute all of those amounts pursuant to subsection (d) on the fifth day of the immediately succeeding month.
    (f) All amounts distributed under subsection (d) may only be used for purposes that money distributed from the motor vehicle highway account may be expended under IC 8-14-1.

SOURCE: IC 6-6-1.1-802; (13)IN1286.1.2. -->     SECTION 2. IC 6-6-1.1-802 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 802. (a) The administrator shall, after the transfer specified in section 801.5 of this chapter, deposit the remainder of the revenues collected under this chapter in the following manner:
        (1) The taxes collected with respect to gasoline delivered to a taxable marine facility shall be deposited in the fish and wildlife fund established by IC 14-22-3-2.
        (2) Twenty-five Thirty-three percent (25%) (33%) of the taxes collected under this chapter, except the taxes referred to in subdivision (1), shall be deposited in the highway, road, and street fund established under IC 8-14-2-2.1.
        (3) The remainder of the revenues collected under this chapter

shall be deposited in the motor fuel tax fund of the motor vehicle highway account.
     (b) Taxes deposited in the motor vehicle highway account may not be used to pay any part of the operating expenses of the bureau of motor vehicles.

SOURCE: IC 6-6-2.5-68; (13)IN1286.1.3. -->     SECTION 3. IC 6-6-2.5-68 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 68. (a) The administrator shall transfer the next twenty-five million dollars ($25,000,000) of the taxes that are collected under this chapter and received during a period beginning July 1 of a year and ending June 30 of the immediately succeeding year to the auditor of state for distribution in the following manner:
        (1) Thirty percent (30%) to each of the counties, cities, and towns eligible to receive a distribution from the local road and street account under IC 8-14-2 and in the same proportion among the counties, cities, and towns as funds are distributed under IC 8-14-2-4.
        (2) Thirty percent (30%) to each of the counties, cities, and towns eligible to receive a distribution from the motor vehicle highway account under IC 8-14-1 and in the same proportion among the counties, cities, and towns as funds are distributed from the motor vehicle highway account under IC 8-14-1.
        (3) Forty percent (40%) to the Indiana department of transportation.
    (b) The auditor of state shall hold all amounts of collections received from the administrator that are made during a particular month and shall distribute all of those amounts under subsection (a) on the fifth day of the immediately succeeding month.
    (c) All amounts distributed under subsection (a) may only be used for purposes that money distributed from the motor vehicle highway account may be expended under IC 8-14-1.
    (d) All revenue collected under this chapter shall be used in the same manner as the revenue collected under IC 6-6-1.1. The administrator shall, after the transfers specified in subsection (a), deposit the remainder of the revenues collected under this chapter in the same manner that revenues are deposited under IC 6-6-1.1-802.
     (e) Taxes deposited in the motor vehicle highway account may not be used to pay any part of the operating expenses of the bureau of motor vehicles.
SOURCE: IC 6-6-4.1-5; (13)IN1286.1.4. -->     SECTION 4. IC 6-6-4.1-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) The department shall deposit revenue collected under sections 4 and 12 of this chapter

in the state highway fund (IC 8-23-9-54).
    (b) The department shall deposit revenue collected under section 4.5 of this chapter as follows:
        (1) Forty-five and one-half percent (45.5%) in the state highway fund (IC 8-23-9-54).
        (2) Forty-five and one-half percent (45.5%) in the motor vehicle highway account (IC 8-14-1).
        (3) Nine percent (9%) in the motor carrier regulation fund administered by the department.
    (c) The department shall deposit revenue collected under section 13 of this chapter as follows:
        (1) Thirty-five percent (35%) in the motor vehicle highway account (IC 8-14-1).
        (2) Sixty-five percent (65%) in the state highway fund (IC 8-23-9-54).
     (d) Taxes deposited in the motor vehicle highway account may not be used to pay any part of the operating expenses of the bureau of motor vehicles.

SOURCE: IC 8-14-1-2; (13)IN1286.1.5. -->     SECTION 5. IC 8-14-1-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. It is hereby declared to be the policy of the state of Indiana that:
        (1) the net amount in the motor vehicle highway account shall be budgeted for programs of traffic safety and for the construction, reconstruction, improvement, and maintenance and policing of the highways of the state;
        (2) a fair distribution thereof shall be made between the department and subordinate political subdivisions having jurisdiction of highways of the state;
        (3) the funds allotted shall be used in accordance with the policy herein declared and the provisions of this chapter; and
        (4) the funds allocated to counties, cities, and towns from such motor vehicle highway account shall be budgeted as provided by law, and such county budgets shall be referred to the county council for approval, revision, or reduction.
SOURCE: IC 8-14-1-3; (13)IN1286.1.6. -->     SECTION 6. IC 8-14-1-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. The money collected for the motor vehicle highway account fund and remaining after refunds and the payment of all expenses incurred in the collection thereof, and after the deduction of the amount appropriated to the department for traffic safety, and after the deduction of one-half (1/2) of the amount appropriated for the state police department, shall be allocated to and distributed among the department and subdivisions designated as

follows:
        (1) Of the net amount in the motor vehicle highway account the auditor of state shall set aside for the cities and towns of the state fifteen percent (15%) thereof. This sum shall be allocated to the cities and towns upon the basis that the population of each city and town bears to the total population of all the cities and towns and shall be used for the construction or reconstruction and maintenance of streets and alleys and shall be annually budgeted as now provided by law. However, no part of such sum shall be used for any other purpose than for the purposes defined in this chapter. If any funds allocated to any city or town shall be used by any officer or officers of such city or town for any purpose or purposes other than for the purposes as defined in this chapter, such officer or officers shall be liable upon their official bonds to such city or town in such amount so used for other purposes than for the purposes as defined in this chapter, together with the costs of said action and reasonable attorney fees, recoverable in an action or suit instituted in the name of the state of Indiana on the relation of any taxpayer or taxpayers resident of such city or town. A monthly distribution thereof of funds accumulated during the preceding month shall be made by the auditor of state.
        (2) Of the net amount in the motor vehicle highway account, the auditor of state shall set aside for the counties of the state thirty-two percent (32%) thereof. However, as to the allocation to cities and towns under subdivision (1) and as to the allocation to counties under this subdivision, in the event that the amount in the motor vehicle highway account fund remaining after refunds and after the payment of all expenses incurred in the collection thereof and after deduction of any amount appropriated by the general assembly for public safety and policing shall be less than twenty-two million six hundred and fifty thousand dollars ($22,650,000) in any fiscal year, then the amount so set aside in the next calendar year for distributions to counties shall be reduced fifty-four percent (54%) of such deficit and the amount so set aside for distribution in the next calendar year to cities and towns shall be reduced thirteen percent (13%) of such deficit. Such reduced distributions shall begin with the distribution January 1 of each year.
        (3) The amount set aside for the counties of the state under the provisions of subdivision (2) shall be allocated monthly upon the following basis:
            (A) Five percent (5%) of the amount allocated to the counties

to be divided equally among the ninety-two (92) counties.
            (B) Sixty-five percent (65%) of the amount allocated to the counties to be divided on the basis of the ratio of the actual miles, now traveled and in use, of county roads in each county to the total mileage of county roads in the state, which shall be annually determined, accurately, by the department.
            (C) Thirty percent (30%) of the amount allocated to the counties to be divided on the basis of the ratio of the motor vehicle registrations of each county to the total motor vehicle registration of the state.
        All money so distributed to the several counties of the state shall constitute a special road fund for each of the respective counties and shall be under the exclusive supervision and direction of the board of county commissioners in the construction, reconstruction, maintenance, or repair of the county highways or bridges on such county highways within such county.
        (4) Each month the remainder of the net amount in the motor vehicle highway account shall be credited to the state highway fund for the use of the department.
        (5) Money in the fund may not be used for any toll road or toll bridge project.
        (6) Notwithstanding any other provisions of this section, money in the motor vehicle highway account fund may be appropriated to the Indiana department of transportation from the forty-seven percent (47%) distributed to the political subdivisions of the state to pay the costs incurred by the department in providing services to those subdivisions.
        (7) Notwithstanding any other provisions of this section or of IC 8-14-8, for the purpose of maintaining a sufficient working balance in accounts established primarily to facilitate the matching of federal and local money for highway projects, money may be appropriated to the Indiana department of transportation as follows:
            (A) One-half (1/2) from the forty-seven percent (47%) set aside under subdivisions (1) and (2) for counties and for those cities and towns with a population greater than five thousand (5,000).
            (B) One-half (1/2) from the distressed road fund under IC 8-14-8.

SOURCE: IC 9-29-1-1; (13)IN1286.1.7. -->     SECTION 7. IC 9-29-1-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) Except as provided in sections 2 through 4 of this chapter, all money collected by the bureau

under IC 9-14-5, IC 9-18-2, IC 9-18-5, IC 9-18-6, IC 9-18-7, IC 9-18-9, IC 9-18-10, IC 9-18-11, IC 9-18-16, IC 9-24-3, IC 9-24-4, IC 9-24-5, IC 9-24-7, IC 9-24-8, IC 9-24-10, IC 9-24-11, IC 9-24-12, IC 9-24-13, and IC 9-24-14 shall be deposited daily with the treasurer of state and credited to the motor vehicle highway account established under IC 8-14-1.
     (b) The bureau may not receive money from the motor vehicle highway account in a state fiscal year in an amount exceeding the sum of the amounts deposited under subsection (a) in that state fiscal year.