HB 1246 Summary

• Establishes a federal fund exchange program allowing counties and municipalities receiving federal surface transportation funds to exchange them for an equal amount of state funds on a 1:1 ratio.

• Indiana Department of Transportation administers the program and determines available state funds annually by July 1, considering adequacy of state funds and federal fund usage capability.

• Participating units must provide exchange agreements specifying projects, estimated costs, and demonstrate project benefits from removing federal funding constraints due to project size, type, or location.

• State funds must be used only for the project originally intended for federal funds, with units required to maintain at least 10% local matching funds and comply with public purchasing and competitive bidding laws.

• Effective date is July 1, 2011, with the Department submitting annual reports to the General Assembly on exchange agreements and project implementation status.