CHAPTER 8. DISTRESSED ROADS
IC 8-14-8
Chapter 8. Distressed Roads
IC 8-14-8-1
Purpose
Sec. 1. The intent of this chapter is to create a method ofproviding financial assistance to counties, cities, and towns (referredto as "units" in this chapter) which have serious road and streetdeficiencies. This chapter has the purpose of enhancing public safetyand ensuring the free flow of commerce.
As added by Acts 1981, P.L.88, SEC.12. Amended by P.L.114-1983,SEC.1.
IC 8-14-8-2
Distressed road fund; establishment
Sec. 2. There is established a distressed road fund which is to beadministered by the Indiana department of transportation. Thedistressed road fund is a nonbudgetary, nonreverting fund.
As added by Acts 1981, P.L.88, SEC.12. Amended by P.L.18-1990,SEC.113.
IC 8-14-8-3
"Qualified county" defined
Sec. 3. For purposes of this chapter, "qualified county" means acounty having a population of:
(1) more than fifty thousand (50,000) but less than fifty-fivethousand (55,000);
(2) more than thirty-nine thousand six hundred (39,600) but lessthan forty thousand (40,000);
(3) more than thirty-two thousand (32,000) but less thanthirty-three thousand (33,000);
(4) more than twenty-nine thousand (29,000) but less than thirtythousand (30,000);
(5) more than twenty-seven thousand (27,000) but less thantwenty-seven thousand two hundred (27,200);
(6) more than eighteen thousand three hundred (18,300) but lessthan nineteen thousand three hundred (19,300);
(7) more than twenty thousand three hundred (20,300) but lessthan twenty thousand five hundred (20,500);
(8) more than twelve thousand (12,000) but less than thirteenthousand five hundred (13,500);
(9) more than ten thousand (10,000) but less than ten thousandseven hundred (10,700); or
(10) more than ten thousand seven hundred (10,700) but lessthan twelve thousand (12,000).
As added by Acts 1981, P.L.88, SEC.12. Amended by Acts 1982,P.L.1, SEC.26; P.L.12-1992, SEC.64; P.L.170-2002, SEC.66.
IC 8-14-8-4
Loan; application; requisites Sec. 4. (a) A qualified county which:
(1) has adopted the county motor vehicle excise surtax underIC 6-3.5-4 and the county wheel tax under IC 6-3.5-5;
(2) is imposing the county motor vehicle excise surtax at:
(A) the maximum allowable rate, if the qualified county setsa county motor vehicle excise surtax rate underIC 6-3.5-4-2(a)(1); or
(B) an amount of not less than twenty dollars ($20), if thequalified county sets the county motor vehicle excise surtaxat a specific amount under IC 6-3.5-4-2(a)(2); and
(3) has not issued bonds under IC 8-14-9;
may apply to the Indiana department of transportation for a loan fromthe distressed road fund. At the time of the application, the countyshall notify the department of local government finance that it hasmade the application.
(b) The application must include, at a minimum:
(1) a map depicting all roads and streets in the system of theapplicant; and
(2) a copy of that county's proposed program of work coveringthe current and the immediately following calendar year.
As added by Acts 1981, P.L.88, SEC.12. Amended by P.L.18-1990,SEC.114; P.L.255-1996, SEC.6; P.L.90-2002, SEC.315.
IC 8-14-8-5
Loan; evaluation of needs; criteria
Sec. 5. (a) In evaluating each applicant's needs for a loan from thedistressed road fund, the Indiana department of transportation shalluse criteria that are consistent with good engineering practices. Thecriteria used must include, at a minimum:
(1) traffic counts and projected traffic;
(2) areas served;
(3) surface material and conditions;
(4) base material and depth;
(5) drainage, including culverts;
(6) width of roadway and right-of-way;
(7) soils upon which the road is placed;
(8) topography; and
(9) seasonal weather conditions and the effect on road repairand maintenance.
(b) In addition to the criteria listed in subsection (a), thedepartment shall consider the minimum transportation needs of allareas regardless of population or vehicle registration, and the reportfiled with the department by the department of local governmentfinance under section 6 of this chapter.
As added by Acts 1981, P.L.88, SEC.12. Amended by P.L.18-1990,SEC.115; P.L.90-2002, SEC.316.
IC 8-14-8-6
Report; availability and use of highway money
Sec. 6. Within thirty (30) days of the date of application for a loan
by a qualified county, the department of local government financeshall submit to the Indiana department of transportation a financialreport which shall include the following:
(1) The amount of money available to the county for roadconstruction and maintenance.
(2) An analysis of the use, during the five (5) years immediatelypreceding the date of the loan application, of all highwaymoney the county has received.
(3) Any other information required by the Indiana departmentof transportation for the processing of loan applications.
As added by Acts 1981, P.L.88, SEC.12. Amended by P.L.114-1983,SEC.2; P.L.18-1990, SEC.116; P.L.90-2002, SEC.317.
IC 8-14-8-7
Loan approval; agreement; terms; repayment
Sec. 7. (a) The Indiana department of transportation shall notifya qualified county that makes a loan application of the department'sapproval or disapproval of the application within sixty (60) days ofthe date of application. The decision made by the department toapprove or disapprove a loan application is final.
(b) The Indiana department of transportation and each qualifiedcounty for which a loan has been approved under this chapter shallenter into a loan agreement which shall specify, as a minimum, thepurposes for which the loan is to be used and the terms of repaymentof the loan. The terms must be consistent with subsection (c).
(c) The maximum term of repayment of a loan made under thissection is ten (10) years. A loan that is repaid within the term ofrepayment specified in the loan agreement is not subject to interest.If a loan is not fully repaid within the term of repayment, the balancethat remains unpaid at the end of the term of repayment is subject tointerest at the rate of twelve percent (12%) per year.
As added by Acts 1981, P.L.88, SEC.12. Amended by P.L.114-1983,SEC.3; P.L.18-1990, SEC.117.
IC 8-14-8-8
Receipts from loan repayment; deposit in fund
Sec. 8. All amounts received by the Indiana department oftransportation from a county as repayment of a loan made under thischapter, or as payment of interest on a loan made under this chapter,shall be deposited in the distressed road fund.
As added by Acts 1981, P.L.88, SEC.12. Amended by P.L.18-1990,SEC.118.
IC 8-14-8-9
Expenditures not subject to Geometric Design Guide for LocalRoads and Streets
Sec. 9. Notwithstanding any other law, expenditure made from thedistressed roads fund are not subject to the provisions of theGeometric Design Guide for Local Roads and Streets.
As added by Acts 1982, P.L.79, SEC.2.
IC 8-14-8-10
Loan; qualified county or unit eligible to receive distribution frommotor vehicle highway account
Sec. 10. The Indiana department of transportation shall makeloans from the distressed road fund:
(1) to any qualified county under the terms of this chapter; or
(2) to any unit eligible to receive a distribution from the motorvehicle highway account (IC 8-14-1) under terms of section 11of this chapter.
As added by P.L.114-1983, SEC.4. Amended by P.L.18-1990,SEC.119.
IC 8-14-8-11
Loan; application; approval; interest; agreement between unit anddepartment; restrictions on funds
Sec. 11. (a) A unit must make application for the loan to theIndiana department of transportation. The application must include,as a minimum:
(1) a map depicting all roads and streets in the system of theapplicant; and
(2) a copy of that unit's proposed program of work covering thecurrent and the immediately following calendar year.
(b) The Indiana department of transportation shall notify a unitthat makes a loan application of the department's approval ordisapproval of the application within sixty (60) days of the date ofapplication. The decision made by the department to approve ordisapprove is final.
(c) The loan is not subject to the payment of interest or penalty ifrepaid within two (2) years.
(d) The unit and the Indiana department of transportation shallenter into a written agreement stating the terms of the loan. Theagreement must include a provision that the unit directs the auditorof state to withhold distributions from its allocations from the motorvehicle highway account if the loan is not repaid within two (2)years.
(e) Money from a loan made under this section may be used onlyfor the purpose of matching federal aid highway funds.
As added by P.L.114-1983, SEC.5. Amended by P.L.18-1990,SEC.120.
IC 8-14-8-12
Use of funds for matching federal or local money
Sec. 12. Funds in the distressed road fund may be appropriated tothe Indiana department of transportation to maintain a workingbalance in accounts established primarily to facilitate the matchingof federal and local money for highway projects.
As added by P.L.113-1983, SEC.3. Amended by P.L.18-1990,SEC.121.