Citations Affected: IC 6-6-11-29 ; IC 8-14-1 ; IC 9-15-2-1 ; IC 9-16-1-5 ; IC 9-29.
Synopsis: Bureau of motor vehicles license branch fund. Abolishes the
state license branch fund. Requires the collections from motor vehicle
transaction service charges and from certain boat excise tax collections
to be deposited in the motor vehicle highway account. Requires the
funds in the motor vehicle highway fund to be used to pay the expenses
incurred in administering license branches. Requires the funds that
remain in the state license branch fund on December 31, 2001, to be
transferred to the motor vehicle highway account
Effective: January 1, 2002.
January 18, 2001, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 29. (a) The
auditor of state shall transfer the department of natural resources fee,
the lake and river enhancement fee, the delinquent excise taxes, and the
delinquent fees collected under this chapter during the preceding
month as follows:
(1) On or before the eleventh day of each month, the auditor of state shall transfer to the
state license branch fund motor vehicle
highway account an amount equal to five percent (5%) of each
excise tax transaction completed by the bureau. The money is to
be used to cover the expenses incurred by the bureau of motor
vehicles and the license branches for returns, decals, collecting
the fees and excise taxes and to cover any service charges by the
An additional charge may not be
imposed for the services of the license branches under this
(2) At least quarterly, the auditor of state shall set aside for the
department of natural resources the fees and the delinquent fees
collected under this chapter to use as provided in section 35 of
(3) On or before the tenth day of each month, the auditor of state shall distribute to each county the excise tax collections, including delinquent tax collections, for the county for the preceding month. The auditor shall include a report with each distribution showing the information necessary for the county auditor to allocate the revenue among the taxing units of the county.
(4) The auditor of state shall deposit the revenue from the lake and river enhancement fee imposed by section 12(b) of this chapter in the lake and river enhancement fund established by section 12.5 of this chapter.
(b) Money credited to each county's account in the state general fund is appropriated to make the distributions and the transfers required by subsection (a). The distributions shall be made upon warrants drawn from the state general fund.
SECTION 2. IC 8-14-1-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 1. As used in this chapter:
(1) "Motor vehicle highway account" means the account of the general fund of the state known as the "motor vehicle highway account" to which is credited collections from motor vehicle service charges, registration fees, licenses, driver's and chauffeur's license fees, gasoline taxes, auto transfer fees, certificate of title fees, weight taxes or excise taxes and all other similar special taxes, duties or excises of all kinds on motor vehicles, trailers, motor vehicle fuel or motor vehicle owners or operators, and from boat excise tax collections under IC 6-6-11-29.
(2) The term "department" refers to the Indiana department of transportation.
(3) The term "highways" includes roadway, rights of way, bridges, drainage structures, signs, guard rails, protective structures in connection with highways, drains, culverts, and bridges and the substructure and superstructure of bridges and approaches thereto and streets and alleys of cities or towns.
(4) The term "construction" means the planning, supervising, inspecting, actual building, draining, and all expenses incidental to the construction of a highway.
(5) The term "reconstruction" means a widening or a rebuilding of 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 other
than bridges, means the constant making of needed repairs, to
preserve a smooth surfaced highway, adequately drained, marked
and guarded by protective structures for public safety and, as to
bridges, means the constant making of needed repairs to preserve
a smooth surfaced highway thereon and the safety and
preservation of the bridge and its approaches, together with the
substructure and superstructure thereof; and such term also means
and includes the acquisition and use, in any manner, of all needed
equipment, fuel, materials and supplies essential and incident
(7) The term "vehicle registration" means the number of vehicles subject to registration under IC 9-18 which are registered thereunder, and, when used with respect to the state, shall mean the number of vehicles registered in the state and when used in respect to a county, city, or town shall mean the number of vehicles registered by owners resident in the county, city, or town.
SECTION 3. IC 8-14-1-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: 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:
(A) paying the expenses incurred in administering all license branches in the state under IC 9-16;
(B) after the expenses under clause (A) have been paid, programs of traffic safety; and
(C) after the expenses under clause (A) have been paid, for the construction, reconstruction, improvement, maintenance, and policing of the highways of the state;
(2) after the expenses in subdivision (1)(A) have been paid, 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.
SECTION 4. IC 8-14-1-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 3. The money collected for the motor vehicle highway account fund
and remaining after paying the
expenses incurred in administering all license branches in the state
under IC 9-16, 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 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
(B) One-half (1/2) from the distressed road fund under IC 8-14-8.
SECTION 5. IC 8-14-1-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 4. The funds allocated to the respective counties of the state from the motor vehicle highway account, after the payment of the expenses incurred in administering all license branches in the state under IC 9-16, shall annually be budgeted as provided by law, and, when distributed shall be used for construction, reconstruction and maintenance of the highways of the respective counties, including highways which 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. 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 and maintenance of highways, shall be paid out of the highway account of the various counties.
SECTION 6. IC 9-15-2-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 1. The commission shall do the following:
(1) Develop and continuously update the bureau's policies.
(2) Recommend to the governor legislation that is needed to implement the policies developed by the commission.
(3) Recommend to the bureau proposed rules that are needed to implement the policies developed by the commission and require those proposed rules to be adopted under IC 4-22-2.
(4) Review, revise, adopt, and submit to the budget agency budget proposals for the commission, the bureau, and the license branches operated under IC 9-16, including the budget required by IC 9-16-3-3.
(5) Establish the determination criteria and determine the number and location of license branches to be operated under IC 9-16. However, there must be at least one (1) full service license branch in each county.
annual registration fee and the annual supplemental fee.
SECTION 10. IC 9-29-14 IS REPEALED [EFFECTIVE JANUARY 1, 2002].
SECTION 11. [EFFECTIVE JANUARY 1, 2002] (a) The funds that remain in the state license branch fund under IC 9-29-14 on December 31, 2001, shall be transferred to and deposited in the motor vehicle highway account under IC 8-14-1.
(b) This SECTION expires December 31, 2002.