Ind. Code ch. 36-9-42.2

Ind. Code ch. 36-9-42.2
in effect

Ind. Code § 36-9-42.2-1 "Department"

Sec. 1. As used in this chapter, "department" refers to the Indiana department of transportation established by IC 8-23-2-1. As added by P.L.141-2013, SEC.1.

Ind. Code § 36-9-42.2-2 "Eligible entity"

Sec. 2. As used in this chapter, "eligible entity" means any entity eligible to receive, directly or indirectly, federal funds through the state or a metropolitan planning organization or otherwise. As added by P.L.141-2013, SEC.1. Amended by P.L.218-2017, SEC.91.

Ind. Code § 36-9-42.2-2.5 "Exchanged funds"

Sec. 2.5. As used in this chapter, "exchanged funds" means the part of the local share exchanged for state dollars in accordance with section 6(b) of this chapter. As added by P.L.218-2017, SEC.92.

Ind. Code § 36-9-42.2-3 "Federal funds"

Sec. 3. As used in this chapter, "federal funds" means the total amount of federal transportation funds provided by the federal government to the state. As added by P.L.141-2013, SEC.1. Amended by P.L.218-2017, SEC.93.

Ind. Code § 36-9-42.2-3.3 "Local share"

Sec. 3.3. As used in this chapter, "local share" means twenty-five percent (25%) of the federal funds received by the state in a year. As added by P.L.218-2017, SEC.94.

Ind. Code § 36-9-42.2-3.5 "Metropolitan planning organization"

Sec. 3.5. As used in this chapter, "metropolitan planning organization" means a federally mandated transportation policy making organization that: (1) is designated to serve a particular transportation planning area within the state; and (2) receives, directly or indirectly, federal funds. As added by P.L.218-2017, SEC.95.

Ind. Code § 36-9-42.2-4 "Program"

Sec. 4. As used in this chapter, "program" refers to the federal fund exchange program established by section 5 of this chapter. As added by P.L.141-2013, SEC.1.

Ind. Code § 36-9-42.2-4.5 "Transportation asset management plan"

Sec. 4.5. As used in this chapter, "transportation asset management plan" has the meaning set forth in IC 8-23-30-1(f). As added by P.L.218-2017, SEC.96. Amended by P.L.173-2025, SEC.40; P.L.147-2026, SEC.19.

Ind. Code § 36-9-42.2-5 Program established

Sec. 5. The federal fund exchange program is established to provide eligible entities and the department with greater flexibility in funding transportation projects. The department shall administer the program as follows: (1) Exchanged funds awarded to an eligible entity may be carried over for up to three (3) years at the discretion of the department or the metropolitan planning organization, whichever is applicable. (2) Exchanged funds may be expended for any transportation purpose allowable under federal law. (3) Exchanged funds may be expended on any phase of a project, including: (A) periodic project oversight services; (B) construction inspection services; and (C) reimbursement for items that were conducted before the application or request for exchanged funds or before the award of exchanged funds. (4) A recipient of exchanged funds must provide a twenty percent (20%) local match payable by any available revenue source, except as provided by federal law. Awards shall be made by the department or metropolitan planning organization, whichever is applicable, in an amount that is twenty percent (20%) less than the total cost of the project to accomplish the required match. (5) After the initial award of exchanged funds for a project and before the department's closeout of the project, an eligible entity may apply to the department or metropolitan planning organization, whichever is applicable, to be awarded additional exchanged funds as considered necessary to pay for project change orders. (6) All contracts for professional services paid for with exchanged funds must be made on the basis of competence and qualifications for the type of services to be performed and compensation shall be negotiated as the eligible entity determines to be reasonable after its selection of a consultant or consultants. (7) Professional services must be performed by an entity that is prequalified by the department. (8) The department's design manual must provide guidance for projects funded with exchanged funds. However, exceptions to the design manual guidance are permitted at the discretion of the eligible entity. As added by P.L.141-2013, SEC.1. Amended by P.L.218-2017, SEC.97.

Ind. Code § 36-9-42.2-6 Local share; calculation; allocation

Sec. 6. (a) Not later than fifteen (15) days after receiving information from the federal government regarding the state's distribution of federal funds, the department shall calculate the local share for that year and notify the budget agency of the amount. (b) After approval by the budget director, the department may exchange up to one hundred percent (100%) of the local share for state dollars. (c) The department shall allocate the exchanged funds for the following purposes: (1) To be distributed to eligible entities for projects under the program in accordance with federal law regarding distributions between areas within a metropolitan planning organization and areas not within a metropolitan planning organization. (2) To be available for direct distribution to eligible entities for projects or annual services including, but not limited to, federally required bridge inspections. (d) The department may allocate additional state funds to the program at any time. In making its determination the department shall consider whether additional state funds are available for the program without putting at risk other transportation activities or projects needing state funds. As added by P.L.141-2013, SEC.1. Amended by P.L.218-2017, SEC.98.

Ind. Code § 36-9-42.2-7 Application; award criteria

Sec. 7. (a) An eligible entity may apply to the department or to a metropolitan planning organization to receive exchanged funds if: (1) the project: (A) is eligible under federal law; or (B) is part of a transportation asset management plan approved by the department; and (2) using any available revenue source, the eligible entity commits to a local match of twenty percent (20%), or a match consistent with federal law, of the amount of the exchanged funds the eligible entity is requesting to receive. (b) The department shall consider the following before awarding exchanged funds to an eligible entity: (1) The amount of exchanged funds the eligible entity has requested. (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) in receiving exchanged funds due to the project's size, type, location, or other features. (4) The nature of the project and whether it has an economic significance for the region in which the eligible entity is located. (5) Whether or not the eligible entity wishes to carry over its award of exchanged funds to the following year. As added by P.L.141-2013, SEC.1. Amended by P.L.218-2017, SEC.99.

Ind. Code § 36-9-42.2-9 Repealed

As added by P.L.141-2013, SEC.1. Amended by P.L.218-2017, SEC.102. Repealed by P.L.49-2024, SEC.13.

Ind. Code § 36-9-42.2-10 Compliance with applicable laws

Sec. 10. Applicable public purchasing laws and competitive bidding requirements must be complied with for projects funded through the program. As added by P.L.141-2013, SEC.1. Amended by P.L.218-2017, SEC.103.

Ind. Code § 36-9-42.2-11 Adoption of rules or guidelines

Sec. 11. The department may adopt rules under IC 4-22-2 or guidelines, or both, to implement this chapter. As added by P.L.141-2013, SEC.1. Amended by P.L.218-2017, SEC.104.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/36Fetched: 10/17/2026

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