Citations Affected: IC 36-9.
Synopsis: Federal fund exchange program. Establishes the federal
fund exchange program (program) to allow a county, municipality, or
metropolitan planning organization that receives funds from the federal
surface transportation program to exchange the federal funds for an
agreed upon amount of state funds. Provides that the Indiana
department of transportation shall administer the program.
Effective: July 1, 2013.
January 7, 2013, read first time and referred to Committee on Roads and Transportation.
February 14, 2013, amended, reported _ Do Pass.
February 18, 2013, read second time, ordered engrossed.
February 19, 2013, engrossed. Read third time, passed. Yeas 93, nays 0.
A BILL FOR AN ACT to amend the Indiana Code concerning local
Sec. 6. Not later than March 1 of each year, the department shall determine the amount of state funds available for the program. In making the determination, the department shall consider the following:
(1) Whether adequate state funds are available to fund the program without putting at risk other transportation activities or projects needing state funds.
(2) Whether the department can readily and effectively use federal funds received through the program.
Sec. 7. An eligible entity is eligible to participate in the program upon entering into an exchange agreement with the department. The department shall consider the following before entering into an exchange agreement with an eligible entity:
(1) The amount of federal funds the eligible entity wants to exchange.
(2) A brief description of each project the eligible entity wants to fund, including the estimated cost of the project.
(3) The benefit to a project described in subdivision (2) from the removal of federal funding, due to the project's size, type, location, or other features.
(4) The approximate relative equity among districts of the department in receiving state funds through the program.
(5) The availability of state funds.
An eligible entity may enter into an exchange agreement with respect to a project at any time during the project development process.
Sec. 8. An exchange agreement must provide the following:
(1) The eligible entity may exchange only federal funds for state funds.
(2) The eligible entity may use state funds only for a purpose approved by the department.
(3) If the eligible entity uses state funds to replace local funds in order to use the local funds for purposes unrelated to transportation, the eligible entity:
(A) must repay the state funds to the department; and
(B) may not participate in the program during the succeeding fiscal year.
(4) An exchange rate of not less than seventy-five cents ($0.75) of state funds for each one dollar ($1) of federal funds.
(5) The eligible entity agrees to provide local matching funds equal to not less than ten percent (10%) of the estimated
(6) The department will disburse the state funds to the eligible entity on a reimbursement basis.
Sec. 9. Not later than November 1 of each year, the department shall submit a report on the program to the general assembly in an electronic format under IC 5-14-6. A report submitted under this section must include:
(1) a summary of the exchange agreements entered into during the fiscal year; and
(2) a status report on the implementation of projects funded through the program.
Sec. 10. An eligible entity that participates in the program shall comply with applicable public purchasing laws and competitive bidding requirements with respect to projects funded through the program.
Sec. 11. The department may adopt rules under IC 4-22-2 to implement this chapter.