The bill has been assigned to the Roads and Transportation Committee. The proposal will get its first hearing on Wednesday.
The proposed legislation says motorists who do not give cyclists the three-foot clearance could be fined up to $500.
INDOT officials say factors have changed since the initial route along State Road 37 was selected ten years ago
INDOT Commissioner Karl Browning doesn't recommend raising the gas tax but says an increasing number of bridges and roads in the state are in poor condition.
INDOT says salt prices are up 57 percent compared to last year.
The $200 million is part of a fund the legislature set up in 2013.
A few counties are under a travel advisory, the lowest level of weather and travel condition warnings.
Megabuses were involved in three crashes in Indiana over the past few months, and another bus was taken out of service Wednesday because of safety concerns.
With daytime temperatures in the 40s and 50s, rain is likely throughout the week.
The app will include notifications about flooding, hazardous materials spills and other events that could affect travel.