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IC 36-9-4-1
Application of chapter
Sec. 1. This chapter applies to all municipalities.
As added by Acts 1981, P.L.309, SEC.77.
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 36-9-4-6
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 36-9-4-8
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.
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.
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 36-9-4-29
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.
IC 36-9-4-29.5
Hearings; expanded services; required information
Sec. 29.5. (a) A public transportation corporation must hold a
public hearing concerning proposed expanded service under section
29.4 of this chapter. The corporation must do the following:
(1) Provide public notice of the hearing as provided in IC 5-3-1.
(2) Make a good faith effort to deliver written notice of the
hearing to all motor carriers that, in the reasonable opinion of
the corporation:
(A) are authorized to and capable of providing the proposed
transportation service; and
(B) may desire to provide the proposed transportation
service due to geographic or other business related factors.
(b) A corporation must present the following information at a
hearing held under subsection (a):
(1) The specific purpose for the proposed transportation service,
including a description of the intended users of the service and
the address of the principal office of the users.
(2) The proposed routes, schedules, rates or compensation, and
the commencement date for the transportation service.
(3) Any other information specifically relating to the proposed
expanded service and reasonably required by other potential
carriers to evaluate the carrier's ability to provide the proposed
service.
(c) A hearing held under subsection (a) must be open to the public
and shall be held at a time and place determined by the corporation.
The corporation shall accept both written and oral testimony at the
hearing.
As added by P.L.229-1991, SEC.2.
IC 36-9-4-29.6
Eligible motor carriers; bids; expanded services
Sec. 29.6. (a) A motor carrier authorized in Indiana to perform the
transportation service described at a hearing under section 29.5 of
this chapter is eligible to provide the service if the motor carrier does
the following:
(1) Files a written bid not later than ten (10) days after the
hearing under section 29.5 of this chapter at the principal office
of each intended user of the transportation service. However, a
filing is not required under this subdivision if the intended user
is an unassociated group of individuals or does not have a
designated principal office.
(2) Agrees in the bid to perform the transportation service in
accordance with the routes, schedules, rates or compensation,
commencement date, and other specific terms as proposed by
the corporation under section 29.5(b) of this chapter.
(3) Delivers a copy of the motor carrier's bid to the corporation
within ten (10) days after the hearing under section 29.5 of this
chapter.
(b) A bid complies with subsection (a)(2) if the transportation
service contained in the bid substantially conforms with all of the
terms proposed by the corporation under section 29.5(b) of this
chapter and the service is reasonably designed to meet the specific
needs of the intended users of the service.
(c) A corporation may provide the proposed expanded service
described in section 29.5(b) of this chapter without further notice or
hearing only if either of the following conditions exists:
(1) No bids in compliance with subsection (a) are received by
the corporation within the time period provided in subsection
(a).
(2) A motor carrier, having complied with subsection (a):
(A) fails to commence the transportation service by the later
of:
(i) sixty (60) days after the hearing under subsection (a);
or
(ii) the commencement date for the service as proposed by
the corporation under section 29.5(b)(2) of this chapter; or
(B) fails to implement or perform the transportation service
in strict compliance with the corporation's bid under
subsection (a) and the failure continues for thirty (30) days
after receipt of a written notice of noncompliance from the
corporation.
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.
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.
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 36-9-4-47
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;
IC 36-9-4-48
Cumulative transportation fund; establishment; notice; tax levy
Sec. 48. (a) A cumulative transportation fund to provide money
for the acquisition of buses and for the planning, establishment, and
maintenance of routes and schedules to assist in implementing this
chapter may be established under IC 6-1.1-41 by:
(1) the legislative body of a municipality that:
(A) is making grants to an urban mass transportation system;
or
(B) has purchased buses for operation under lease by an
urban mass transportation system; or
(2) the board of directors of a public transportation corporation.
(b) In addition to other notices required under IC 6-1.1-41, notices
of hearings under IC 6-1.1-41 must be given to the following:
(1) the municipal executive, for a tax levy by a municipality;
and
(2) the chairman of the board of directors, for a tax levy by a
public transportation corporation.
(c) A tax levy to finance the cumulative transportation fund may
be levied in compliance with IC 6-1.1-41. The tax levied under this
section may not exceed six and sixty-seven hundredths cents
($0.0667) on each one hundred dollars ($100) of taxable property
within the corporate boundaries of the municipality or the taxing
district of the public transportation corporation, as the case may be.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1981,
P.L.45, SEC.40; P.L.17-1995, SEC.24; P.L.6-1997, SEC.216.
IC 36-9-4-49
Insufficient funds; special tax levy
Sec. 49. (a) For each year in which it is anticipated that the total
amount available to a public transportation corporation will be
insufficient to defray the expenses incurred by the corporation, the
board of directors of the corporation shall levy a special tax upon all
the property within the taxing district of the corporation at the rate
required to defray such expenses. The tax must be based upon the
budget formulated and filed by the board under this chapter.
(b) The county treasurer shall collect the tax levied under this
section 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.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-50
Federal or state aid
Sec. 50. A municipality that establishes or acquires an urban mass
transportation system under this chapter, or a municipality that has
a privately owned urban mass transportation system and has received
a request from the management of the system, may apply for aid from
any federal or state government agency. A municipality acting under
this section may:
(1) perform any act or acts lawfully required; or
(2) execute and perform agreements necessary or convenient;
to obtain the aid without limitation by the provisions of this chapter,
except that a municipality may not interfere with any right, interest,
or part of any other public transportation system without the consent
of the other system.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-51
Review of annual budget and tax levies
Sec. 51. (a) The board of directors of a public transportation
corporation shall prepare an annual budget for the expenditures of
the corporation.
(b) This subsection applies only when a municipality, having
operated an urban mass transportation system under a department of
municipal government, establishes a public transportation
corporation under section 10 of this chapter to maintain that system.
The annual operating and maintenance budget for the corporation
shall be subject to review and modification by the legislative body of
the municipality.
(c) A public transportation corporation may not impose a property
tax levy on property that it has not taxed before January 1, 1982, and
that lies outside the corporate boundaries of the municipality without
the approval of the fiscal body or county council of the county in
which the municipality is located.
(d) The budget and any tax levies prepared by the board shall be
prepared and submitted at the same time, in the same manner, and
with the same notice as is prescribed by IC 6-1.1-17 for the annual
budget of the municipality. The county tax adjustment board and the
department of local government finance may review the budget and
tax levies in the same manner by which they review budgets and tax
levies of the municipality.
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts 1982,
P.L.217, SEC.2; P.L.90-2002, SEC.507.
IC 36-9-4-52
Property tax exemption
Sec. 52. Property acquired by a municipality or public
transportation corporation under this chapter is exempt from property
taxes.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-53
Books, records, and accounts
Sec. 53. The books, accounts, records, and transactions of a public
transportation corporation are subject to examination, audit, and
supervision by the state board of accounts to the same extent as the
books, accounts, records, and transactions of other municipal
corporations and their officers and departments. However, in lieu of
the system of accounts prescribed by the state board of accounts, a
public transportation corporation may maintain its books, accounts,
records, and transactions according to the financial accounting and
reporting elements system, known as "Project Fare", that is
established by the federal Urban Mass Transportation
Administration.
IC 36-9-4-54
Transportation of school pupils; contracts
Sec. 54. An urban mass transportation system operating under this
chapter may be used for the transportation of pupils to and from
schools under a contract made with any school corporation having
jurisdiction within the taxing district of the public transportation
corporation. The system is solely responsible for the bus drivers'
employment and actions, but the bus drivers must meet the
qualifications for drivers of school buses as provided in IC 20-27-8.
The buses used for the rendition of service under this section need
not meet the requirements of the statutes relating to the construction,
equipment, and painting of school buses.
As added by Acts 1981, P.L.309, SEC.77. Amended by P.L.1-2005,
SEC.239.
IC 36-9-4-55
Interlocal cooperation agreements; authorization
Sec. 55. Whenever the same urban mass transportation system
operates on regularly scheduled routes within two (2) or more
municipalities, the legislative bodies of those municipalities may
enter into an interlocal cooperation agreement under IC 36-1-7 for
the purpose of implementing this chapter upon mutually agreeable
terms and conditions. The legislative bodies of the municipalities
may adopt a joint ordinance establishing a public transportation
corporation encompassing:
(1) the municipalities; and
(2) their suburban territory, as defined in IC 36-9-1-9.
As added by Acts 1981, P.L.309, SEC.77.
IC 36-9-4-56
Repealed
(Repealed by P.L.72-1988, SEC.10.)
IC 36-9-4-57
Improvement reserve fund
Sec. 57. (a) The board of directors of a public transportation
corporation may, by resolution, establish an improvement reserve
fund for the purpose of accumulating money over two (2) or more
fiscal years for the following:
(1) The purchase of specified real property.
(2) The purchase of specified major equipment, including
buses.
(3) The making of improvements to real property owned by the
public transportation corporation.
(b) Transfers that are placed in an improvement reserve fund
established under this section must be included in the annual budget
of the public transportation corporation.
(c) The board of directors of a public transportation corporation
may make an expenditure of money from an improvement reserve
fund only after:
(1) holding a public meeting in accordance with section 22 of
this chapter;
(2) the adoption by the board of a resolution under subsection
(d); and
(3) approval by the department of local government finance.
(d) A resolution for expenditure from an improvement reserve
fund established under this section must include the following:
(1) The specific amount of the expenditure.
(2) The specific use of the expenditure.
(3) A finding by the board of directors that the proposed use of
funds complies with the restrictions under subsection (a).
(e) The money in the improvement reserve fund may not be
considered in determining the corporation's property tax levy under
this chapter or IC 6-1.1.
(f) The money in the improvement reserve fund at the end of the
fiscal year does not revert to the general fund.
As added by P.L.317-1989, SEC.1. Amended by P.L.90-2002,
SEC.508.
IC 36-9-4-58
Regulation by department of state revenue
Sec. 58. An urban mass transportation system operating under this
chapter is considered a common carrier not operating under a
franchise or contract granted by a municipality and not regulated by
ordinance, and is subject to the authority of the department of state
revenue under IC 8-2.1 to the same extent as any other common
carrier. However, in determining the reasonableness of the fares and
charges of such a system, the department of state revenue shall
consider, among other factors, the policy of this chapter to foster and
assure the development and maintenance of urban mass
transportation systems, and it is not necessary that the operating
revenues of the system be sufficient to cover the cost to the system
of providing adequate service.
As added by P.L.99-1989, SEC.36.