CHAPTER 4. URBAN MASS TRANSPORTATION SYSTEMS; PUBLIC TRANSPORTATION CORPORATIONS
IC 36-9-4
Chapter 4. Urban Mass Transportation Systems; Public
Transportation Corporations
IC 36-9-4-1
Application of chapter
Sec. 1. This chapter applies to all municipalities. However, after
December 31, 2009, this chapter does not apply to a municipality if
it is located in a county that is a member of the northern Indiana
regional transportation district established under IC 8-24 and has a
population of:
(1) more than four hundred thousand (400,000) but less than
seven hundred thousand (700,000); or
(2) more than one hundred forty-five thousand (145,000) but
less than one hundred forty-eight thousand (148,000).
As added by Acts 1981, P.L.309, SEC.77. Amended by
P.L.182-2009(ss), SEC.451.
IC 36-9-4-2
"Management" defined
Sec. 2. For purposes of this chapter, the "management" of an
urban mass transportation system is:
(1) the board of directors, for a corporation;
(2) the majority of the partners, for a partnership in which the
partners have equal rights in the management and control of the
partnership business;
(3) the partners having a controlling interest, for other
partnerships;
(4) the proprietor, for an individual proprietorship; or
(5) the managers, if any, or members of a limited liability
company.
As added by Acts 1981, P.L.309, SEC.77. Amended by P.L.8-1993,
SEC.518.
IC 36-9-4-3
Declaration of public purpose
Sec. 3. The establishment of an urban mass transportation system
under this chapter is a public use and purpose for which public
money may be spent and private property may be acquired.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-4
Existing systems; application for assistance from municipalities
Sec. 4. (a) If the management of an urban mass transportation
system in any municipality finds that the system is unable to render
adequate service within the municipality or that there is imminent
danger that the system will be unable to render that service, the
management of the system may apply to the municipal legislative
body for assistance under this chapter.
(b) On receipt of an application under subsection (a) the
municipal legislative body may study whether the financial position
of the transportation system is such that the system is unable to
render adequate service within the municipality or that there is
imminent danger that the system will be unable to render that service.
The legislative body shall pay for these studies by appropriation from
the general fund of the municipality, and the money need not be
restored to the general fund.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-5
Financial assistance from municipality; necessary findings; types
of assistance
Sec. 5. (a) The municipal legislative body may furnish the urban
mass transportation system with the financial assistance necessary to
enable the system to provide adequate service within the
municipality, if the legislative body finds:
(1) that the system is unable to render that service or that there
is imminent danger that the system will be unable to render that
service; and
(2) that the system is:
(A) necessary to relieve traffic congestion in the municipality;
(B) necessary for the proper use of the factories, stores,
warehouses, offices, schools, recreational facilities, and other
places where members of the general public congregate;
(C) necessary to expand the economic and social opportunities
available to residents of the municipality, especially those who
cannot freely move about without the services of the system;
(D) a substantial factor in maintaining real property values in
the municipality; or
(E) a substantial factor in providing public housing,
redevelopment of blighted areas, and publicly owned offstreet
parking facilities.
(b) The municipal legislative body may furnish assistance under
this section by:
(1) making grants to the system;
(2) purchasing buses or real property from the system or from
any other source for lease to the system; or
(3) making both grants and purchases.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-6
Grants to systems by municipalities; contracts
Sec. 6. (a) If the municipal legislative body decides to make grants
under section 5 of this chapter, it must enter into and confirm by
ordinance a contract with the urban mass transportation system. The
contract must provide for the payment of money by the municipality
to the system in the amounts and at the times determined by the
parties, and may include other terms and conditions determined by
the parties. However, the contract may not:
(1) require the system to repay the grants to the municipality;
(2) exceed ten (10) years in duration; or
(3) require the municipality to make grants to a system that has
ceased operations within the municipality.
(b) The municipal legislative body may pay the grants by
appropriation from the general fund of the municipality or from a
special fund established for that purpose.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-7
Purchase of property from system by municipality; contracts and
leases; appraisals
Sec. 7. (a) If the municipal legislative body decides to purchase
buses or real property, or both, from the urban mass transportation
system under section 5 of this chapter, it must enter into and confirm
by ordinance a contract and lease requiring the municipality to:
(1) purchase all or part of:
(A) the buses operated by the system; or
(B) the real property owned by the system; as determined by the
parties; and
(2) lease the buses or property purchased to the system for use
in providing mass transportation within the municipality.
(b) The municipality must pay the system a sum equal to the fair
value of the buses or real property purchased, less the amount
outstanding under any mortgage, contract of sale, or other security
device that may attach to the buses or real property. The municipality
may immediately pay off any such outstanding amount or assume
any such mortgage, contract of sale, or other security device.
(c) The fair value of the buses or real property shall be determined
by three (3) appraisers experienced in the appraisal of buses or real
property. One (1) of the appraisers shall be appointed by the
municipality and one (1) by the system. These two (2) appraisers
shall then appoint a third appraiser. However, if they are unable to do
so, each shall submit the names of three (3) appraisers to the circuit
court for the county in which the municipality is located and the
court shall appoint the third appraiser from the names submitted.
(d) If the municipal legislative body decides to purchase both
buses and real property for lease to an urban mass transportation
system, three (3) appraisers shall be appointed to determine the fair
value of the buses and an additional three (3) appraisers shall be
appointed to determine the fair value of the real property. Each group
of three (3) appraisers shall be appointed in the manner prescribed by
subsection (c).
(e) Before making their appraisal, the appraisers must appear
before the clerk of the legislative body and take an oath to make a
just and true appraisal of the buses or real property.
(f) A lease of buses or real property by a municipality to a system
under this section must incorporate provisions for rental and other
terms and provisions that the municipal legislative body considers
necessary under this chapter. The municipality and the system may
enter into additional contracts and leases during the term of the lease.
The term of a lease of buses under this section may not exceed
twenty-five (25) years.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1981,
P.L.317, SEC.1.
IC 36-9-4-8
Purchase of property by municipalities from sources other than
systems; contracts and leases
Sec. 8. (a) If, under section 5 of this chapter, the municipal
legislative body decides to purchase buses or real property, or both,
for the urban mass transportation system from a source other than the
system, it must enter into and confirm by ordinance a contract and
lease requiring the municipality to:
(1) purchase the buses or real property; or
(2) lease the buses or property purchased to the system for use
in providing mass transportation within the municipality.
(b) A lease of buses or real property by a municipality to a system
under this section must incorporate provisions for rental and other
terms and provisions that the municipal legislative body considers
necessary under this chapter. The municipality and the system may
enter into additional contracts and leases during the term of the lease.
The term of a lease of buses under this section may not exceed
twenty-five (25) years.
(c) The purchase of buses under this section is governed by the
general statutes governing public purchases.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1981,
P.L.317, SEC.2.
IC 36-9-4-9
Public acquisition of systems; application to municipality; studies
Sec. 9. (a) If the management of an urban mass transportation
system in any municipality finds that public acquisition of the system
is necessary to enable the system to render adequate service within
the municipality, the management of the system may request the
municipal legislative body to determine whether the public should
acquire the system. The management may withdraw this request only
if:
(1) at least six (6) months have passed since the date of the
request; and
(2) the municipal legislative body did not adopt an ordinance to
acquire the system within six (6) months from the date of the
request.
(b) On receipt of the request, the municipal legislative body shall
study whether it is in the public interest that the public acquire the
system. The legislative body shall pay for these studies by an
appropriation from the general fund of the municipality, which need
not be restored to the general fund.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-10
Public acquisition of systems; declaratory resolution; creation of
public transportation corporation
Sec. 10. (a) If, as a result of its studies under section 9 of this
chapter, the municipal legislative body finds that public acquisition
of the system would fulfill one (1) or more of the conditions listed in
section 5(a)(2) of this chapter, it may adopt an ordinance:
(1) declaring that public acquisition of the system is in the
public interest of the municipality;
(2) providing for the creation of a public transportation
corporation;
(3) specifying the number of directors of the corporation; and
(4) setting forth the boundaries of the taxing district of the
corporation.
(b) The taxing district set forth in the ordinance may include only:
(1) all territory inside the corporate boundaries of the
municipality; and
(2) the suburban territory, as defined in IC 36-9-1-9, that is
served by the system at the time of acquisition.
As added by Acts 1981, P.L.309, SEC.77. Amended by P.L.348-1983,
SEC.2.
IC 36-9-4-11
Establishment of systems by municipalities
Sec. 11. (a) The legislative body of a municipality may study
whether it is in the public interest that a system be established and
maintained under this chapter by the municipality. The legislative
body shall pay for these studies by an appropriation from the general
fund of the municipality, which need not be restored to the general
fund.
(b) If the legislative body finds as a result of its studies that the
establishment and maintenance of a system would fulfill any one (1)
or more of the conditions listed in section 5(a)(2) of this chapter, it
may adopt an ordinance specifying the conditions that are fulfilled.
The legislative body may then:
(1) enter into a contract to make grants-in-aid to a system that
will serve the municipality, under section 6 of this chapter;
(2) enter into a contract to purchase buses and real property for
lease to a system that will serve the municipality, under section
7 or 8 of this chapter; or
(3) establish a public transportation corporation, under section
10 of this chapter.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1982,
P.L.217, SEC.1.
IC 36-9-4-12
Public transportation corporation; name
Sec. 12. A public transportation corporation is a separate
municipal corporation, which shall be known as
"__________________ Public Transportation Corporation"
(designating the name of the municipality).
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-13
Public transportation corporation; taxing district; boundaries after
annexation and disannexation; incorporation of additional
territory
Sec. 13. (a) After the creation of a public transportation
corporation, territory may be added to the taxing district of the
corporation only in accordance with this section.
(b) If the municipality finalizes an annexation or disannexation of
territory, the boundaries of the taxing district of the corporation
change so as to remain coterminous with the new boundaries of the
municipality. Such a change takes effect when the annexation or
disannexation takes effect.
(c) Upon written request by a majority of:
(1) the resident freeholders in a platted subdivision; or
(2) the owners of any unplatted lands;
in the same county as a public transportation corporation but not
within a municipality, the board of directors of the corporation may,
by resolution, incorporate all or part of the platted subdivision or
unplatted lands into the taxing district. Such a request must be signed
and certified as correct by the resident freeholders or landowners
making the request, and the original must be preserved in the records
of the board. The resolution of the board incorporating an area into
the taxing district must be in writing and must include an accurate
description of that area. A certified copy of the resolution, signed by
the chairman and secretary of the board, together with a map
showing the boundaries of the taxing district and the location of the
additional areas, shall be delivered to the auditor of the county within
which the corporation is located and shall be properly indexed and
kept in the permanent records of the offices of the auditor.
(d) Upon written request by ten (10) or more resident freeholders
of a platted subdivision or unplatted territory in the same county as
a public transportation corporation but not within a municipality, the
board of directors of the corporation may define the limits of an area
that:
(1) is within the county;
(2) includes the property of the freeholders; and
(3) is to be considered for incorporation into the taxing district.
Notice of the defining of the area by the board, and notice of the
location and limits of the area, must be given by publication in
accordance with IC 5-3-1. The area may then be incorporated into the
taxing district upon request, in the manner prescribed by subsection
(c).
(e) Property in territory added to the taxing district under
subsection (c) or (d) is, as a condition of the special benefits it
subsequently receives, liable for its proportion of all taxes
subsequently levied by the public transportation corporation. The
proportion of taxation shall be determined in the same manner as
when territory is annexed by a municipality.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1981,
P.L.45, SEC.37; P.L.348-1983, SEC.3.
IC 36-9-4-13.5
Counties of more than 200,000 but less than 300,000; public
transportation corporations; city in county having second largest
population
Sec. 13.5. (a) This section applies to a county having a population
of more than two hundred thousand (200,000) but less than three
hundred thousand (300,000).
(b) The taxing district of a public transportation corporation under
this section includes all the territory inside the corporate boundaries
of the two (2) cities in the county having the largest populations and
such suburban territory as provided in section 13 of this chapter.
(c) This section applies upon the adoption of substantially
identical ordinances approving subsection (b) by both:
(1) the public transportation corporation incorporating the
additional territory; and
(2) the legislative body of the city being added to the taxing
district of the public transportation corporation.
(d) Whenever the city in the county having the second largest
population becomes a part of the public transportation corporation,
then two (2) additional directors representing that city shall be
appointed to the board of directors of the corporation. The directors
must be residents of that city and are entitled to all of the rights,
privileges, powers, and duties of directors under this chapter. The
executive and the legislative body of that city shall each appoint one
(1) director. These two (2) directors must not be of the same political
party. The director appointed by the legislative body shall serve for
a term of one (1) year, and the director appointed by the executive
shall serve for a term of two (2) years. Upon the expiration of the
respective terms, successors shall be appointed in accordance with
section 18 of this chapter.
(e) If the city in the county having the second largest population
appropriates money to support the public transportation corporation
in a particular year, and if the territory of that city subsequently
becomes a part of the taxing district of the public transportation
corporation in that year and is subject to a separate property tax levy
for transportation services, the maximum permissible levy of that city
for the year following the particular year used to compute the
property tax levy limit under IC 6-1.1-18.5 is decreased, and the
maximum permissible levy of the public transportation corporation
for the particular year used to compute the property tax levy limit
under IC 6-1.1-18.5 is increased, by an amount equivalent to the
current contract amount to be paid by that city to the public
transportation corporation for transportation services provided to that
city in the particular year.
(f) The public transportation corporation shall establish a single
property tax rate applicable to the taxing district of the public
transportation corporation, including the territory of the city in the
county having the second largest population that is included in the
public transportation corporation under this section. The initial
permissible levy to be raised by this rate equals the sum of the
amount raised by the levy of the public transportation corporation in
the previous taxable year plus an amount equivalent to the current
contract amount to be paid in the calendar year 1982 by the city in
the county having the second largest population to the public
transportation corporation. The permissible levy for the subsequent
years shall be computed in accordance with IC 6-1.1-18.5.
(g) If the city in the county having the second largest population
is excluded from the public transportation corporation in a
subsequent year, and that city is no longer subject to a separate
property tax levy for transportation services, the maximum
permissible levy of the public transportation corporation for that
subsequent year used to compute the property tax levy limit under
IC 6-1.1-18.5 is decreased, and the maximum permissible levy of that
city for that subsequent year used to compute the property tax levy
limit under IC 6-1.1-18.5 is increased, by the amount of the product
of the public transportation property tax rate for that subsequent year
multiplied by the assessed value in that subsequent year of all taxable
property in that city that is excluded from the public transportation
corporation.
As added by Acts 1981, P.L.186, SEC.2. Amended by P.L.73-1983,
SEC.20; P.L.12-1992, SEC.177.
IC 36-9-4-14
Public transportation corporation; management by board of
directors
Sec. 14. (a) A public transportation corporation is under the
control of a board of directors, which shall exercise the executive
and legislative powers of the corporation.
(b) Directors must be residents of the taxing district of the
corporation.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-15
Cities; public transportation corporations; board of directors;
membership
Sec. 15. (a) The board of directors of a public transportation
corporation in a city consists of either five (5) or seven (7) directors,
as determined by the city legislative body.
(b) If the board of directors consists of five (5) directors, they are:
(1) two (2) directors appointed by the city executive, for terms
of one (1) and two (2) years, respectively; and
(2) three (3) directors appointed by the city legislative body, for
terms of two (2), three (3), and four (4) years, respectively.
(c) If the board of directors consists of seven (7) directors, they
are:
(1) three (3) directors appointed by the city executive, for terms
of one (1), two (2), and three (3) years, respectively; and
(2) four (4) directors appointed by the city legislative body, for
terms of one (1), two (2), three (3), and four (4) years,
respectively.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1981,
P.L.317, SEC.3.
IC 36-9-4-16
Towns; public transportation corporations; board of directors;
membership
Sec. 16. (a) The board of directors of a public transportation
corporation in a town consists of either five (5) or seven (7)
directors, as determined by the town legislative body. All the
directors shall be appointed by the legislative body.
(b) If the board of directors consists of five (5) directors, they are:
(1) one (1) director appointed for a term of one (1) year;
(2) two (2) directors appointed for terms of two (2) years;
(3) one (1) director appointed for a term of three (3) years; and
(4) one (1) director appointed for a term of four (4) years.
(c) If the board of directors consists of seven (7) directors, they
are:
(1) two (2) directors appointed for terms of one (1) year;
(2) two (2) directors appointed for terms of two (2) years;
(3) two (2) directors appointed for terms of three (3) years; and
(4) one (1) director appointed for a term of four (4) years.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1981,
P.L.317, SEC.4.
IC 36-9-4-17
Directors; membership in political parties
Sec. 17. The appointing authorities shall make appointments to
the board of directors under section 15 or 16 of this chapter so that
the number of directors belonging to either of the two (2) major
political parties does not exceed the number belonging to the other
by more than one (1). If the appointing authorities cannot agree on
the manner in which this will be done, the municipal executive shall
make the appointment that results in one (1) party having more
directors than the other.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-18
Board of directors; vacancies
Sec. 18. (a) On the expiration of the term of office of a director of
a public transportation corporation, the appointing authority shall
appoint a director for a term of four (4) years and until his successor
is appointed and qualified.
(b) If a director leaves office before his term has expired, the
appointing authority shall appoint a new director to serve the
remainder of the term.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-19
Impeachment of directors
Sec. 19. A director of a public transportation corporation may be
impeached under IC 5-8-1.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-20
Compensation of directors
Sec. 20. A director of a public transportation corporation is
entitled to:
(1) compensation of not more than one thousand two hundred
dollars ($1,200) annually, as determined in the budget; and
(2) reimbursement for any expenses incurred in the interest of
the board of directors.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-21
Board of directors; officers
Sec. 21. On the first day of the first month after their appointment,
and annually after that, the directors of a public transportation
corporation shall elect one (1) director as chairman of the board and
one (1) director as secretary.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-22
Meetings of board of directors
Sec. 22. (a) The board of directors of a public transportation
corporation shall, by rule, provide for regular meetings to be held at
designated intervals throughout the year.
(b) The board shall convene in a special meeting whenever such
a meeting is called by the chairman or by a majority of the directors.
Notice of a special meeting must be given by publication in
accordance with IC 5-3-1.
(c) The board shall keep its meetings open to the public.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1981,
P.L.45, SEC.38.
IC 36-9-4-23
Board of directors; quorum; approval of actions; records;
management of internal affairs
Sec. 23. (a) A majority of the board of directors of a public
transportation corporation constitutes a quorum for a meeting.
(b) The board may act officially by affirmative vote of a majority
of those present at the meeting at which the action is taken.
(c) The board shall keep a written record of its proceedings
available for public inspection in its office. The record must include
the aye and nay vote on the passage of each item of business.
(d) The board shall adopt rules of procedure under which its
meetings are to be held. The board may suspend these rules by
unanimous vote of the members present at any meeting, but it may
not suspend them beyond the meeting at which the suspension
occurs.
(e) The board has the same power to supervise its internal affairs
as other municipal administrative bodies.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-24
Introduction of proposed ordinances; public notice
Sec. 24. (a) A director of a public transportation corporation may
introduce a proposed draft of an ordinance at a meeting of the board
of directors. A director who introduces a proposed draft of an
ordinance must provide, at the time of introduction, a written copy
of the proposed draft. The board must place the date of introduction
and a distinguishing number on each proposed draft of an ordinance.
(b) The board must publish a notice that the proposed ordinance
is pending final action by the board. The notice must be published in
accordance with IC 5-3-1. However, notice of an ordinance
establishing a budget must be given in accordance with the statutes
governing budgets of the municipality served by the corporation.
(c) The board must include in the notice reference to the subject
matter of the proposed ordinance and the time and place a hearing on
it will be held, and must indicate that the proposed draft of an
ordinance is available for public inspection at the office of the board.
The board may include in one (1) notice a reference to the subject
matter of each draft of an ordinance that is pending and for which
notice has not previously been given. The reference to the subject
matter is adequate if it is sufficient to advise the public of the general
subject matter of the proposed ordinance.
(d) The board must, not later than the date of notice of the
introduction of a proposed ordinance, place five (5) copies of the
proposed draft on file in the office of the board for public inspection.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1981,
P.L.45, SEC.39.
IC 36-9-4-25
Adoption of ordinances; procedure
Sec. 25. (a) At a meeting for which notice has been given under
section 24 of this chapter, the board of directors of a public
transportation corporation may take final action on the proposed
ordinance or may postpone final consideration of it to a designated
meeting in the future without giving additional notice. Before
adopting an ordinance, the board must give an opportunity to any
person present at the meeting to give testimony or evidence for or
against the proposed ordinance, under the rules as to the number of
persons who may be heard and the time limits adopted by the board.
(b) Whenever the board adopts an ordinance, it shall designate the
effective date of the ordinance at the same meeting. If the board fails
to designate the effective date of the ordinance in the record of the
proceedings of the board, the ordinance takes effect fourteen (14)
days after its passage.
(c) Whenever the board adopts an ordinance, it shall cause copies
of the ordinance to be made available to the public.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-26
Printing and distribution of ordinances
Sec. 26. The board of directors of a public transportation
corporation may provide for the printing of all or part of the
ordinances of the corporation in pamphlet form or in bound volumes,
and may distribute them without charge or may charge the cost of
printing and distribution.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-27
Controller
Sec. 27. (a) The board of directors of a public transportation
corporation shall appoint a qualified person to serve as controller.
The controller is the chief fiscal officer of the corporation, and he
must give bond in the sum and with the conditions prescribed by the
board and with surety to the approval of the board.
(b) All money payable to the public transportation corporation
shall be paid to the controller, and he shall deposit it under IC 5-13-6.
The controller shall deposit this money in the depositories and in the
accounts that the board designates by ordinance.
(c) The controller shall keep an accurate account of all
appropriations made and all taxes levied by the public transportation
corporation, all money owing or due to the corporation, and all
money received and disbursed by the corporation, and he shall
preserve all vouchers for payments and disbursements.
(d) The controller shall issue all warrants for the payment of
money from the funds of the public transportation corporation, but
he may not issue a warrant for the payment of a claim until the claim
has been allowed in accordance with the procedure prescribed by the
rules of the board. All warrants must be countersigned by the
chairman of the board.
(e) If the controller is called upon to issue a warrant, he may
require evidence that the amount claimed is justly due, and for that
purpose he may summon before him any officer, agent, or employee
of the public transportation corporation and examine him on oath or
affirmation relating to the warrant. The controller may administer the
oath or affirmation.
(f) Notwithstanding subsections (d) and (e), the board may
authorize the controller to pay a per diem in advance to a public
transportation employee or board member who will attend a training
session or other special business meeting required as a duty of the
public transportation employee or board member.
(g) Each year, and more often if required by the board, the
controller shall submit his records of account as controller for audit
to the certified public accountant or firm of certified public
accountants designated by the board. The certified public accountant
or firm of certified public accountants shall submit to the board a
certified report of the records of account, exhibiting the revenues,
receipts, and disbursements, the sources from which the revenues and
funds are derived, and the manner in which they have been
disbursed.
As added by Acts 1981, P.L.309, SEC.77. Amended by P.L.19-1987,
SEC.53; P.L.327-1995, SEC.2.
IC 36-9-4-28
Purchase of property from system by corporation
Sec. 28. (a) The board of directors of the public transportation
corporation and the management of the urban mass transportation
system shall negotiate for the purchase of all the real and personal
property, licenses, rights, and interests of the system by the
corporation, unless the system shows that part of its property is not
necessary for the proper operation of the system.
(b) If the parties agree upon the terms and conditions of the
purchase, the board shall adopt an ordinance incorporating those
terms and conditions.
(c) If the parties cannot agree upon the terms and conditions of the
purchase, the board may adopt an ordinance directing the acquisition
of the property that has been the subject of the negotiations through
eminent domain proceedings under section 32 of this chapter.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-29
Public transportation corporation; operation of system; contracts
or leases for use of system
Sec. 29. (a) Upon acquisition of the necessary property by a
public transportation corporation, the board of directors of the
corporation may:
(1) operate and maintain the system;
(2) lease the system to any operator; or
(3) contract for the use of the system by any operator.
(b) The board may also contract with any organization that has
executive personnel with experience and skill applicable to the
superintendence of the operation and maintenance of an urban mass
transportation system. The contract must require the organization to
furnish its services and the services of its personnel for the
superintendence of the system.
(c) The maximum term of a contract or lease executed under this
section is twenty-five (25) years.
(d) A contract or lease executed under this section must be
confirmed by ordinance of the board.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1981,
P.L.317, SEC.5.
IC 36-9-4-29.4
Expansion of services outside operational boundaries
Sec. 29.4. (a) This section does not apply to a public
transportation corporation located in a county having a consolidated
city.
(b) A public transportation corporation may provide regularly
scheduled passenger service to specifically designated locations
outside the system's operational boundaries as described in
IC 36-9-1-9 if all of the following conditions are met:
(1) The legislative body of the municipality approves any
expansion of the service outside the municipality's corporate
boundaries.
(2) The expanded service is reasonably required to do any of the
following:
(A) Enhance employment opportunities in the new service
area or the existing service area.
(B) Serve persons who are elderly, persons with a disability,
or other persons who are in need of public transportation.
(3) Except as provided in subsection (e), the expanded service
does not extend beyond the boundary of the county in which the
corporation is located.
(c) Notwithstanding section 39 of this chapter, a public
transportation corporation may provide demand responsive service
outside of the system's operational boundaries as described in
IC 36-9-1-9 if the conditions listed in subsection (b) are met.
(d) The board may contract with a private operator for the
operation of an expanded service under this section.
(e) Subsection (b)(3) does not apply to a special purpose bus (as
defined in IC 20-27-2-10) or a school bus (as defined in
IC 20-27-2-8) that provides expanded service for a purpose permitted
under IC 20-27-9.
As added by P.L.229-1991, SEC.1. Amended by P.L.278-2001,
SEC.9; P.L.1-2005, SEC.238; P.L.99-2007, SEC.223;
P.L.182-2009(ss), SEC.452.
IC 36-9-4-29.5
Repealed
(Repealed by P.L.182-2009(ss), SEC.468.)
IC 36-9-4-29.6
Repealed
(Repealed by P.L.182-2009(ss), SEC.468.)
IC 36-9-4-30
Board of directors; power to acquire, hold, and dispose of property
Sec. 30. The board of directors of a public transportation
corporation may:
(1) acquire by grant, purchase, gift, lease, or otherwise; and
(2) hold, use, sell, lease, or dispose of;
real and personal property, licenses, patents, rights, and interests
necessary or convenient for the exercise of its powers under this
chapter.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-31
Board of directors; seal
Sec. 31. The board of directors of a public transportation
corporation may adopt a seal to be impressed upon its instruments
and may provide for the impression of that seal by printed or
lithographic facsimile. An executed instrument bearing the seal of
the board is prima facie evidence of its execution by the board and
that its execution was legally authorized by the board.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-32
Eminent domain; procedure
Sec. 32. (a) The board of directors of a public transportation
corporation may exercise the power of eminent domain for the
condemnation of any interest in real or personal property for use
within the taxing district of the corporation.
(b) Proceedings for the condemnation of property by the board are
governed by IC 32-24-1 to the extent it is not in conflict with this
chapter.
(c) The board may not institute proceedings until it has adopted
an ordinance generally describing the property to be acquired,
declaring that the public interest and necessity require the acquisition
by the corporation of the property involved, and declaring that the
acquisition is necessary for the establishment, development,
extension, or improvement of the system. The ordinance is
conclusive evidence of the public necessity of the proposed
acquisition and that the proposed acquisition is planned in a manner
most compatible with the greatest public good and the least private
injury.
As added by Acts 1981, P.L.309, SEC.77. Amended by P.L.2-2002,
SEC.119.
IC 36-9-4-33
Board of directors; power to contract
Sec. 33. The board of directors of a public transportation
corporation may contract with any person upon the terms and
conditions the board considers best for the corporation including the
following:
(1) Contracting for self-insurance protection of its property or
liability under IC 34-13-3.
(2) Engaging in commissions or entering into agreements for
the mutual insurance or sharing of risks for liability or property
damage.
(3) Agreeing to join with other municipal corporations for the
mutual risk sharing of losses due to casualty or acts of God.
As added by Acts 1981, P.L.309, SEC.77. Amended by P.L.353-1987,
SEC.1; P.L.1-1998, SEC.214.
IC 36-9-4-34
Contracts for operation of systems in contiguous territory and
transfer of passengers between systems
Sec. 34. The board of directors of a public transportation
corporation may enter into agreements with any urban mass
transportation system operating in territory contiguous to the taxing
district of the corporation, for:
(1) the operation and maintenance of that system, including the
use, sale, or lease of the real and personal property necessary
for operation of the system; or
(2) the transfer of passengers between that system and the
system owned by the corporation, with a special rate to be
charged for those passengers.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-35
Repealed
(Repealed by P.L.1-1990, SEC.368.)
IC 36-9-4-35.1
Board of directors; adoption of rules for operation of systems;
rates, routings, and standards of service
Sec. 35.1. The board of directors of a public transportation
corporation shall, by ordinance, make rules governing the use,
operation, and maintenance of the urban mass transportation system.
The board may determine all rates, routings, and hours and standards
of service and may change them whenever the board considers a
change advisable. However, the board's powers under this section are
subject to regulation by the department of state revenue as provided
by section 58 of this chapter.
As added by P.L.1-1990, SEC.369.
IC 36-9-4-36
Board of directors; power to sue; service of process
Sec. 36. The board of directors of a public transportation
corporation may, in the name of the corporation, sue or be sued in
court. Service of process shall be made by service upon the secretary
of the board, and notice must be served upon the secretary in the
manner and form required by IC 34-13-3.
As added by Acts 1981, P.L.309, SEC.77. Amended by P.L.1-1998,
SEC.215.
IC 36-9-4-37
Board of directors; employees; collective bargaining agreements
Sec. 37. (a) The board of directors of a public transportation
corporation may appoint or employ a general manager, accountants,
attorneys, traffic engineers, drivers, clerks, secretaries, guards,
laborers, and other employees, and may prescribe and define their
duties, regulate their compensation, discharge them, and appoint or
employ their successors. Employees shall be selected without regard
to race, religion, or any personal affiliation. The board shall select
the general manager on the basis of his fitness for the position, taking
into account his executive ability and his knowledge of and
experience in the field of mass public transportation.
(b) The board shall bargain collectively and enter into written
contracts with authorized labor organizations representing employees
other than executive, administrative, or professional personnel. These
contracts may provide for the binding arbitration of disputes, wages,
salaries, hours, working conditions, health and welfare, insurance,
vacations, holidays, sick leave, seniority, pensions, retirement, and
other benefits.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-38
Surveys and studies
Sec. 38. The board of directors of a public transportation
corporation may make traffic surveys, population surveys, and any
other surveys and studies it considers useful in the operation of urban
mass transportation systems.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-39
"Demand-responsive" or "dial-a-ride" system
Sec. 39. The board of directors of a public transportation
corporation may establish and operate a "demand-responsive" or
"dial-a-ride" transportation system as a part of its urban mass
transportation system within the taxing district of the corporation.
The rates and charges for the system and all related criteria are at the
sole discretion of the board.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-40
Board of directors; power to fulfill purposes of corporation
Sec. 40. The board of directors of a public transportation
corporation may carry out the purposes of the corporation.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-41
Acquisition of systems by corporation; protection of employees
Sec. 41. (a) Whenever a public transportation corporation acquires
an urban mass transportation system under this chapter, the
employees of the system must be protected as follows:
(1) The employees of the system must be retained to the fullest
extent consistent with sound management, and those terminated
or laid off must be assured priority of reemployment.
(2) The individual employees must be retained in positions the
same as, or no worse than, their positions before the acquisition
of the system.
(3) The rights, privileges, and benefits of the employees under
any collective bargaining agreement are not affected, and the
corporation shall assume the duties of the system under the
agreement.
(4) The rights, privileges, and benefits of the employees under
any pension or retirement plan are not affected, and the
corporation shall assume the duties of the system under the
plan.
(b) If a public transportation corporation acquires and leases an
urban mass transportation system, or enters into a contract for the
operation of the system under this chapter, the lease or contract must
provide for compliance with subsection (a).
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-42
Funding
Sec. 42. (a) A municipality or a public transportation corporation
that expends money for the establishment or maintenance of an urban
mass transportation system under this chapter may acquire the money
for these expenditures:
(1) by issuing bonds under section 43 or 44 of this chapter;
(2) by borrowing money made available for such purposes by
any source;
(3) by accepting grants or contributions made available for such
purposes by any source;
(4) in the case of a municipality, by appropriation from the
general fund of the municipality, or from a special fund that the
municipal legislative body includes in the municipality's
budget; or
(5) in the case of a public transportation corporation, by levying
a tax under section 49 of this chapter or by recommending an
election to use revenue from the county option income taxes, as
provided in subsection (c).
(b) Money may be acquired under this section for the purpose of
exercising any of the powers granted by or incidental to this chapter,
including:
(1) studies under section 4, 9, or 11 of this chapter;
(2) grants in aid;
(3) the purchase of buses or real property by a municipality for
lease to an urban mass transportation system, including the
payment of any amount outstanding under a mortgage, contract
of sale, or other security device that may attach to the buses or
real property;
(4) the acquisition by a public transportation corporation of
property of an urban mass transportation system, including the
payment of any amount outstanding under a mortgage, contract
of sale, or other security device that may attach to the property;
(5) the operation of an urban mass transportation system by a
public transportation corporation, including the acquisition of
additional property for such a system; and
(6) the retirement of bonds issued and outstanding under this
chapter.
(c) This subsection applies only to a public transportation
corporation located in a county having a consolidated city. In order
to provide revenue to a public transportation corporation during a
year, the public transportation corporation board may recommend
and the county fiscal body may elect to provide revenue to the
corporation from part of the certified distribution, if any, that the
county is to receive during that same year under IC 6-3.5-6-17. To
make the election, the county fiscal body must adopt an ordinance
before September 1 of the preceding year. The county fiscal body
must specify in the ordinance the amount of the certified distribution
that is to be used to provide revenue to the corporation. If such an
ordinance is adopted, the county fiscal body shall immediately send
a copy of the ordinance to the county auditor.
As added by Acts 1981, P.L.309, SEC.77. Amended by P.L.84-1987,
SEC.15; P.L.5-1988, SEC.221.
IC 36-9-4-43
Issuance of bonds by municipality; procedure
Sec. 43. If the legislative body of a municipality decides to issue
bonds to obtain all or part of the money to be expended for the
establishment and maintenance of an urban mass transportation
system under this chapter, the legislative body may issue the bonds
of the municipality in the same manner as bonds for the general
purposes of the municipality. However, the bonds may be sold to the
federal government at private sale and without a public offering.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-44
Issuance of bonds by corporation; procedure
Sec. 44. (a) If the board of directors of a public transportation
corporation decides to issue bonds to obtain all or part of the money
to be expended for the establishment and maintenance of an urban
mass transportation system under this chapter, the board shall adopt
an ordinance directing the issuance of the bonds. The board shall
certify a copy of the ordinance to the controller of the corporation,
who shall then prepare the bonds.
(b) The bonds must be executed by the chairman of the board and
attested by the controller of the corporation.
(c) The controller is responsible for the sale of the bonds.
(d) Except as otherwise provided in this section, the bonds shall
be issued in the same manner as bonds for the general purposes of
the municipality served by the public transportation corporation.
However, the bonds may be sold to the federal government at private
sale and without a public offering.
(e) In addition to the general power to issue bonds for the
establishment and maintenance of a system, the board may issue
bonds specifically:
(1) for the payment of any judgment against the corporation;
and
(2) to establish or maintain a program of self-insurance or
mutual insurance.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1981,
P.L.317, SEC.6; P.L.353-1987, SEC.2.
IC 36-9-4-45
Bonds; terms; tax exemption; procedure
Sec. 45. (a) Bonds issued under this chapter:
(1) shall be issued in the denomination;
(2) are payable over a period not to exceed thirty (30) years
from the date of the bonds; and
(3) mature;
as determined by the ordinance authorizing the bond issue.
(b) All bonds issued under this chapter, the interest on them, and
the income from them are exempt from taxation to the extent
provided by IC 6-8-5-1.
(c) The provisions of IC 6-1.1-20 relating to:
(1) filing petitions requesting the issuance of bonds and giving
notice of those petitions;
(2) giving notice of a hearing on the appropriation of the
proceeds of the bonds;
(3) the right of taxpayers to appear and be heard on the
proposed appropriation;
(4) the approval of the appropriation by the department of local
government finance; and
(5) the right of:
(A) taxpayers and voters to remonstrate against the issuance
of bonds in the case of a proposed bond issue described by
IC 6-1.1-20-3.1(a); or
(B) voters to vote on the issuance of bonds in the case of a
proposed bond issue described by IC 6-1.1-20-3.5(a);
apply to the issuance of bonds under this chapter.
(d) A suit to question the validity of bonds issued under this
chapter or to prevent their issue and sale may not be instituted after
the date set for the sale of the bonds, and the bonds are incontestable
after that date.
As added by Acts 1981, P.L.309, SEC.77. Amended by P.L.90-2002,
SEC.505; P.L.219-2007, SEC.142; P.L.146-2008, SEC.787.
IC 36-9-4-46
Bonds; special tax levy
Sec. 46. (a) The board of directors of a public transportation
corporation that issues bonds under this chapter shall levy a special
tax each year upon all the property within the taxing district of the
corporation. The tax shall be levied in such a manner as to meet and
pay the principal of the bonds as they mature, together with all
accruing interest.
(b) The county treasurer shall collect the tax in the same manner
as other taxes are collected. As the treasurer collects the tax, he shall
remit it to the controller of the public transportation corporation.
(c) In determining the amount of the levy, the board of directors
shall consider any surplus of accumulated revenue derived from the
operation of the urban mass transportation system, above the sum
considered necessary to be applied upon or reserved for the payment
of the operating and capital expenditures of the system, including
expenditures for the replacement of and additions to the property of
the system and reserves established for the depreciation of the
property of the system. If the board finds that this surplus is
sufficient, it may apply all or part of the surplus to the payment of the
principal of the bonds, together with the interest on them.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-47
Tax anticipation warrants
Sec. 47. (a) The board of directors of a public transportation
corporation may:
(1) borrow money in anticipation of receipt of the proceeds of
taxes that have been levied by the board and have not yet been
collected; and
(2) evidence this borrowing by issuing warrants of the
corporation.
The money that is borrowed may be used by the corporation for
payment of principal and interest on its bonds or for payment of
current operating expenses.
(b) The warrants:
(1) bear the date or dates;
(2) mature at the time or times on or before December 31
following the year in which the taxes in anticipation of which
the warrants are issued are due and payable;
(3) bear interest at the rate or rates and are payable at the time
or times;
(4) may be in the denominations;
(5) may be in the forms, either registered or payable to bearer;
(6) are payable at the place or places, either inside or outside
Indiana;
(7) are payable in the medium of payment;
(8) are subject to redemption upon the terms, including a price
not exceeding par and accrued interest; and
(9) may be executed by the officers of the corporation in the
manner;
provided by resolution of the board of directors. The resolution may
also authorize the board to pay from the proceeds of the warrants all
costs incurred in connection with the issuance of the warrants.
(c) The warrants may be authorized and issued at any time after
the board of directors levies the tax or taxes in anticipation of which
the warrants are issued.
(d) The warrants may be sold for not less than par value after
notice inviting bids has been published in accordance with IC 5-3-1.
The board of directors may also publish the notice inviting bids in
other newspapers or financial journals.
(e) After the warrants are sold, they may be delivered and paid for
at one (1) time or in installments.
(f) The aggregate principal amount of warrants issued in
anticipation of and payable from the same tax levy or levies may not
exceed eighty percent (80%) of the levy or levies, as the amount of
the levy or levies is certified by the department of local government
finance, or as is determined by multiplying the rate of tax as finally
approved by the total assessed valuation of taxable property within
the taxing district of the public transportation corporation as most
recently certified by the county auditor.
(g) For purposes of this section, taxes for any year are considered
to be levied when the board of directors adopts the ordinance
prescribing the tax levies for the year. However, warrants may not be
delivered and paid for before final approval of a tax levy or levies by
the county board of tax adjustment (or, if appealed, by the
department of local government finance) unless the issuance of the
warrants has been approved by the department of local government
finance.
(h) The warrants and the interest on them are not subject to
sections 43 and 44 of this chapter and are payable solely from the
proceeds of the tax levy or levies in anticipation of which the
warrants were issued. The authorizing resolution must pledge a
sufficient amount of