CHAPTER 1. MOTOR VEHICLE HIGHWAY ACCOUNT ACT
IC 8-14
ARTICLE 14. HIGHWAY FINANCES
IC 8-14-1
Chapter 1. Motor Vehicle Highway Account Act
IC 8-14-1-1
Definitions
Sec. 1. As used in this chapter:
(1) "Motor vehicle highway account" means the account of thegeneral fund of the state known as the "motor vehicle highwayaccount" to which is credited collections from motor vehicleregistration fees, licenses, driver's and chauffeur's license fees,gasoline taxes, auto transfer fees, certificate of title fees, weighttaxes or excise taxes and all other similar special taxes, dutiesor excises of all kinds on motor vehicles, trailers, motor vehiclefuel or motor vehicle owners or operators.
(2) The term "department" refers to the Indiana department oftransportation.
(3) The term "highways" includes roadway, rights of way,bridges, drainage structures, signs, guard rails, protectivestructures in connection with highways, drains, culverts, andbridges and the substructure and superstructure of bridges andapproaches thereto and streets and alleys of cities or towns.
(4) The term "construction" means the planning, supervising,inspecting, actual building, draining, and all expenses incidentalto the construction of a highway.
(5) The term "reconstruction" means a widening or a rebuildingof the highway or any portion thereof.
(6) The term "maintenance" when used in reference to cities,towns and counties as applied to that part of the highway otherthan bridges, means the constant making of needed repairs, topreserve a smooth surfaced highway, adequately drained,marked and guarded by protective structures for public safetyand, as to bridges, means the constant making of needed repairsto preserve a smooth surfaced highway thereon and the safetyand preservation of the bridge and its approaches, together withthe substructure and superstructure thereof; and such term alsomeans and includes the acquisition and use, in any manner, ofall needed equipment, fuel, materials and supplies essential andincident thereto.
(7) The term "vehicle registration" means the number ofvehicles subject to registration under IC 9-18 which areregistered thereunder, and, when used with respect to the state,shall mean the number of vehicles registered in the state andwhen used in respect to a county, city, or town shall mean thenumber of vehicles registered by owners resident in the county,city, or town.
(Formerly: Acts 1941, c.168, s.1.) As amended by Acts 1980, P.L.74,
SEC.213; P.L.18-1990, SEC.106; P.L.2-1991, SEC.59.
IC 8-14-1-2
Public policy; budget management; political subdivisions
Sec. 2. It is hereby declared to be the policy of the state of Indianathat:
(1) the net amount in the motor vehicle highway account shallbe budgeted for programs of traffic safety and for theconstruction, reconstruction, improvement, maintenance, andpolicing of the highways of the state;
(2) a fair distribution thereof shall be made between thedepartment and subordinate political subdivisions havingjurisdiction of highways of the state;
(3) the funds allotted shall be used in accordance with thepolicy herein declared and the provisions of this chapter; and
(4) the funds allocated to counties, cities and towns from suchmotor vehicle highway account shall be budgeted as providedby law, and such county budgets shall be referred to the countycouncil for approval, revision, or reduction.
(Formerly: Acts 1941, c.168, s.2.) As amended by Acts 1980, P.L.74,SEC.214; Acts 1981, P.L.41, SEC.48.
IC 8-14-1-2.5
Repealed
(Repealed by P.L.59-1985, SEC.38.)
IC 8-14-1-3
Allocations; basis for distribution
Sec. 3. The money collected for the motor vehicle highwayaccount fund and remaining after refunds and the payment of allexpenses incurred in the collection thereof, and after the deductionof the amount appropriated to the department for traffic safety andafter the deduction of one-half (1/2) of the amount appropriated forthe state police department, shall be allocated to and distributedamong the department and subdivisions designated as follows:
(1) Of the net amount in the motor vehicle highway account theauditor of state shall set aside for the cities and towns of thestate fifteen percent (15%) thereof. This sum shall be allocatedto the cities and towns upon the basis that the population ofeach city and town bears to the total population of all the citiesand towns and shall be used for the construction orreconstruction and maintenance of streets and alleys and shallbe annually budgeted as now provided by law. However, no partof such sum shall be used for any other purpose than for thepurposes defined in this chapter. If any funds allocated to anycity or town shall be used by any officer or officers of such cityor town for any purpose or purposes other than for the purposesas defined in this chapter, such officer or officers shall be liableupon their official bonds to such city or town in such amount soused for other purposes than for the purposes as defined in this
chapter, together with the costs of said action and reasonableattorney fees, recoverable in an action or suit instituted in thename of the state of Indiana on the relation of any taxpayer ortaxpayers resident of such city or town. A monthly distributionthereof of funds accumulated during the preceding month shallbe made by the auditor of state.
(2) Of the net amount in the motor vehicle highway account, theauditor of state shall set aside for the counties of the statethirty-two percent (32%) thereof. However, as to the allocationto cities and towns under subdivision (1), and as to theallocation to counties under this subdivision in the event thatthe amount in the motor vehicle highway account fundremaining after refunds and the payment of all expensesincurred in the collection thereof and after deduction of anyamount appropriated by the general assembly for public safetyand policing shall be less than twenty-two million six hundredand fifty thousand dollars ($22,650,000), in any fiscal year thenthe amount so set aside in the next calendar year fordistributions to counties shall be reduced fifty-four percent(54%) of such deficit and the amount so set aside fordistribution in the next calendar year to cities and towns shallbe reduced thirteen percent (13%) of such deficit. Such reduceddistributions shall begin with the distribution January 1 of eachyear.
(3) The amount set aside for the counties of the state under theprovisions of subdivision (2) shall be allocated monthly uponthe following basis:
(A) Five percent (5%) of the amount allocated to thecounties to be divided equally among the ninety-two (92)counties.
(B) Sixty-five percent (65%) of the amount allocated to thecounties to be divided on the basis of the ratio of the actualmiles, now traveled and in use, of county roads in eachcounty to the total mileage of county roads in the state,which shall be annually determined, accurately, by thedepartment.
(C) Thirty percent (30%) of the amount allocated to thecounties to be divided on the basis of the ratio of the motorvehicle registrations of each county to the total motorvehicle registration of the state.
All money so distributed to the several counties of the stateshall constitute a special road fund for each of the respectivecounties and shall be under the exclusive supervision anddirection of the board of county commissioners in theconstruction, reconstruction, maintenance, or repair of thecounty highways or bridges on such county highways withinsuch county.
(4) Each month the remainder of the net amount in the motorvehicle highway account shall be credited to the state highwayfund for the use of the department. (5) Money in the fund may not be used for any toll road or tollbridge project.
(6) Notwithstanding any other provisions of this section, moneyin the motor vehicle highway account fund may be appropriatedto the Indiana department of transportation from the forty-sevenpercent (47%) distributed to the political subdivisions of thestate to pay the costs incurred by the department in providingservices to those subdivisions.
(7) Notwithstanding any other provisions of this section or ofIC 8-14-8, for the purpose of maintaining a sufficient workingbalance in accounts established primarily to facilitate thematching of federal and local money for highway projects,money may be appropriated to the Indiana department oftransportation as follows:
(A) One-half (1/2) from the forty-seven percent (47%) setaside under subdivisions (1) and (2) for counties and forthose cities and towns with a population greater than fivethousand (5,000).
(B) One-half (1/2) from the distressed road fund underIC 8-14-8.
(Formerly: Acts 1941, c.168, s.3; Acts 1943, c.221, s.1; Acts 1945,c.275, s.1; Acts 1949, c.270, s.1; Acts 1965, c.223, s.1.) As amendedby Acts 1980, P.L.74, SEC.215; Acts 1981, P.L.41, SEC.49;P.L.113-1983, SEC.1; P.L.18-1990, SEC.107; P.L.2-1990, SEC.10.
IC 8-14-1-4
County allocations; budgeting; permissible use of funds; countyallocation
Sec. 4. The funds allocated to the respective counties of the statefrom the motor vehicle highway account shall annually be budgetedas provided by law, and, when distributed shall be used forconstruction, reconstruction and maintenance of the highways of therespective counties, including highways which traverse the streets ofincorporated towns, the cost of the repair and maintenance of whichprior to the tenth day of September, 1932, was paid from the countygravel road repair fund excepting where the department is charged bylaw with the maintenance or construction of any such highway sotraversing such streets. Any surplus existing in the funds at the endof the year shall thereafter continue as a part of the highway funds ofthe said counties and shall be rebudgeted and used as alreadyprovided in this chapter. The purchase, rental and repair of highwayequipment, painting of bridges and acquisition of grounds forerection and construction of storage buildings, acquisition of rightsof way and the purchase of fuel oil, and supplies necessary to theperformance of construction, reconstruction and maintenance ofhighways, shall be paid out of the highway account of the variouscounties.
(Formerly: Acts 1941, c.168, s.4.) As amended by Acts 1980, P.L.74,SEC.216.
IC 8-14-1-5
Permissible use of funds; municipal allocations
Sec. 5. (a) All funds allocated to cities and towns from the motorvehicle highway account shall be used by the cities and towns for theconstruction, reconstruction, repair, maintenance, oiling, sprinkling,snow removal, weed and tree cutting and cleaning of their highwaysas herein defined, and including also any curbs, and the city's ortown's share of the cost of the separation of the grades of crossing ofpublic highways and railroads, the purchase or lease of highwayconstruction and maintenance equipment, the purchase, erection,operation and maintenance of traffic signs and signals, and safetyzones and devices; and the painting of structures, objects, surfaces inhighways for purposes of safety and traffic regulation. All of suchfunds shall be budgeted as provided by law.
(b) In addition to purposes for which funds may be expendedunder subsections (a) and (c) of this section, monies allocated tocities and towns under this chapter may be expended for lawenforcement purposes, subject to the following limitations:
(1) For cities and towns with a population of less than fivethousand (5,000), no more than fifteen percent (15%) may bespent for law enforcement purposes.
(2) For cities and towns other than those specified insubdivision (1) of this subsection, no more than ten percent(10%) may be spent for law enforcement purposes.
(c) In addition to purposes for which funds may be expendedunder subsections (a) and (b) of this section, monies allocated tocities and towns under this chapter may be expended for the paymentof principal and interest on bonds sold primarily to finance road,street, or thoroughfare projects.
(Formerly: Acts 1941, c.168, s.5; Acts 1945, c.164, s.1; Acts 1959,c.278, s.1; Acts 1965, c.121, s.1.) As amended by Acts 1981, P.L.111,SEC.3; P.L.61-2000, SEC.1.
IC 8-14-1-6
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-14-1-7
Short title
Sec. 7. This chapter shall be known as the "Motor VehicleHighway Account Act". The distribution herein set out under section3 of this chapter is hereby declared to be equitable.
(Formerly: Acts 1941, c.168, s.7.) As amended by P.L.66-1984,SEC.55.
IC 8-14-1-8
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-14-1-9 Mandatory transfer of funds
Sec. 9. (a) A written agreement between the department and acity, town, or county under IC 8-23-2-5, or a similar governmentcooperative statute, may provide for a mandatory transfer of funds bythe auditor of state under this section if one (1) of the partiesbecomes more than sixty (60) days late in making a payment requiredby the agreement.
(b) To obtain a mandatory transfer of funds, the party to whom thefunds were to be paid under terms of the written agreement mustcertify in writing to the auditor of state:
(1) that a written agreement between the parties authorizes themandatory transfer of funds as provided in subsection (a);
(2) that the owing party was notified in writing of the amountowed;
(3) that the payment is more than sixty (60) days past due;
(4) the names of the parties; and
(5) the amount of the payment due.
(c) Upon receipt of a certificate as specified in subsection (b), theauditor of state shall:
(1) immediately notify the delinquent party of the claim; and
(2) if proof of payment is not furnished to the auditor of statewithin thirty (30) days after the delinquent party has beennotified, transfer the unpaid amount from the delinquent party'sallocations from the motor vehicle highway account to the otherparty. Transfers shall be made until the unpaid amount has beenpaid in full under the terms of the agreement.
As added by P.L.113-1983, SEC.2. Amended by P.L.18-1990,SEC.108.
IC 8-14-1-10
Covered bridges; appropriation from account; disbursements
Sec. 10. (a) On July 1 of each year, there is appropriated from themotor vehicle highway account for the maintenance of coveredbridges in Indiana the amount necessary to make the disbursementsunder subsection (b) for the year.
(b) Before September 1 of each year, the auditor of state shall, bywarrant drawn on the treasurer of state, distribute to each county thathas a covered bridge located on the county's road system an amountthat may only be used for maintenance of covered bridges in thecounty. The amount to which each county is entitled under thissubsection equals the product of:
(1) the number of covered bridges located on the county's roadsystem; multiplied by
(2) one thousand eight hundred fifty dollars ($1,850).
As added by P.L.127-1987, SEC.1. Amended by P.L.115-1989,SEC.1; P.L.57-1994, SEC.1; P.L.23-2007, SEC.1.
IC 8-14-1-11
Local agency revolving fund; reimbursement; accounts receivable;transfer of funds Sec. 11. (a) The department may create a local agency revolvingfund from money appropriated under section 3(7) of this chapter forthe purpose of maintaining a sufficient working balance in accountsestablished primarily to facilitate the matching of federal and localmoney for highway projects.
(b) The revolving fund balance must be maintained throughreimbursement from a local unit for money used by that unit to matchfederal funds.
(c) If the local unit fails to reimburse the revolving fund, thedepartment shall notify the local unit that the department has foundthe outstanding accounts receivable to be uncollectible.
(d) The attorney general shall review the outstanding accountsreceivable and if the attorney general agrees with the department'sassessment of the account's status, the attorney general shall certifyto the auditor of state that the outstanding accounts receivable isuncollectible and request a transfer of funds as provided insubsection (e).
(e) Upon receipt of a certificate as specified in subsection (d), theauditor of state shall:
(1) immediately notify the delinquent local unit of the claim;and
(2) if proof of payment is not furnished to the auditor of statewithin thirty (30) days after the notification, transfer an amountequal to the outstanding accounts receivable to the departmentfrom the delinquent local unit's allocations from the motorvehicle highway account for deposit in the local agencyrevolving fund.
(f) Transfers shall be made under subsection (e) until the unpaidamount has been paid in full under the terms of the agreement.However, the agreement may be amended if both the department andthe unit agree to amortize the transfer over a period not to exceedfive (5) years.
(g) Money in the fund at the end of a fiscal year does not revert tothe state general fund.
As added by P.L.116-1989, SEC.1. Amended by P.L.1-1994, SEC.35.