Sec. 1. (a) The department shall select the route of highways in the system of highways under its control through cities and towns, and may change the routes as the department determines most convenient for public travel.

(b) Notwithstanding subsection (a) and in or near the city of Mishawaka, Indiana, the portion of Capital Avenue lying between:

(1) the most recently established US 20 bypass as of January 1, 1997; and

(2) the Indiana toll road;

is designated state route number three hundred thirty-one (331).

(c) The department, to the extent of the funds available for the purpose, shall maintain and, as it determines necessary and as the funds required are available, may construct and improve the roadway of the streets or a part of the streets to the width determined by the department. As part of the construction work, the department shall construct within the limits of a street the curbs and gutters, manholes, catch basins, and the necessary drainage structures and facilities.

(d) Notwithstanding subsection (c), funds for the construction or improvement of the road designated as state route three hundred thirty-one (331) under subsection (b), to the extent funds are available for the construction or improvement, shall first be exhausted from:

(1) revenue declared excess by the Indiana toll road;

(2) federal aid designated for the local metropolitan planning organization;

(3) city and county highway funds used for such purpose; and

(4) revenue generated from local incremental finance districts;

before any funds designated to the department are used for construction or improvement of state route three hundred thirty-one (331).

As added by P.L.18-1990, SEC.215. Amended by P.L.89-1997, SEC.2.