CHAPTER 3. POWERS AND DUTIES OF CLASS 1 PUBLIC LIBRARIES
IC 36-12-3
Chapter 3. Powers and Duties of Class 1 Public Libraries
IC 36-12-3-1
Application of chapter
Sec. 1. This chapter applies only to Class 1 public libraries.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-2
Board compliance with and participation in statewide library cardprogram; reciprocal borrowing agreement
Sec. 2. The library board shall comply with and participate in thestatewide library card program described in IC 4-23-7.1-5.1.However, the library board may enter into a reciprocal borrowingagreement with another library board under section 7 of this chapteror IC 36-1-7 to:
(1) provide to; or
(2) receive from;
the other library board library service.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-3
Authority of library board
Sec. 3. The library board shall govern and set policy for all theaffairs of the public library. The library board may:
(1) make rules for the discharge of the library board'sresponsibilities; and
(2) manage and insure all real and personal property belongingto the public library.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-4
Establishment of libraries, branches, or stations; museum
Sec. 4. (a) The library board may establish a sufficient number of:
(1) libraries;
(2) branch libraries; or
(3) stations;
that are conveniently located to serve the residents of the librarydistrict within the resources available.
(b) The library board may provide suitable rooms, structures,facilities, furniture, apparatus, and other articles necessary for thethorough organization and efficient management of the libraries.
(c) The library board may provide for the establishment andoperation of a museum to serve the residents of the library district.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-5
Real or personal property; acquisition; disposal
Sec. 5. (a) The library board may:
(1) acquire real or personal property by purchase, devise, lease,
condemnation, or otherwise; and
(2) own any real or personal property for purposes of the publiclibrary.
(b) The library board may:
(1) sell;
(2) exchange; or
(3) otherwise dispose of;
real property no longer needed for library purposes in accordancewith IC 36-1-11.
(c) The library board may transfer personal property no longerneeded for library purposes for no compensation or a nominal fee toan Indiana nonprofit library organization that is:
(1) tax exempt; and
(2) organized and operated for the exclusive benefit of thelibrary disposing of the property;
without complying with IC 36-1-11.
(d) The library board may:
(1) accept gifts of real or personal property; and
(2) hold, mortgage, lease, or sell the property as directed by theterms of the grant, gift, bequest, or devise;
when the action is in the interest of the public library.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-6
Purchase and loan of books; dissemination of information
Sec. 6. The library board may provide for the:
(1) purchase and loan of books and other media ofcommunication; and
(2) dissemination of information to the residents of the librarydistrict in any manner.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-7
Contracts for library service; tax levy
Sec. 7. (a) A library board may contract to provide or receivelibrary service from the following municipal corporations:
(1) Another public library.
(2) Any unit.
(b) A contract for library service between a public library andanother municipal corporation must outline the:
(1) manner and extent of library service; and
(2) amount of compensation for the extension of library service.
(c) This subsection does not apply to municipal corporationsdescribed in section 8 of this chapter. A municipal corporationreceiving library service shall:
(1) levy a tax sufficient to meet the amount of compensationagreed upon under the contract; and
(2) expend all funds received under a contract for libraryservices chargeable to the contract.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-8
Municipal corporations in certain counties; contracts for libraryservices; tax levy or revenue from other tax
Sec. 8. (a) This section applies to municipal corporations locatedin a county having a population of more than thirty-six thousandseventy-five (36,075) but less than thirty-seven thousand (37,000).
(b) A municipal corporation receiving library service undersection 7 of this chapter shall:
(1) levy a tax sufficient to meet the amount of compensationagreed on under the contract; or
(2) make the contract payments with revenue derived from a taxbeing imposed before the contract is approved by the municipalcorporation, including the part of local income tax revenue thatis not required to be dedicated to providing property tax relief.
(c) A library board providing service shall expend all fundsreceived under a contract for library services chargeable to thecontract.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-9
Bonds; issuance; procedure; liability for indebtedness; taxexemption
Sec. 9. (a) A library board may, by resolution, issue bonds for one(1) or more of the following purposes:
(1) The acquisition or improvement of library sites.
(2) The acquisition, construction, extension, alteration, orimprovement of structures and equipment necessary for theproper operation of a library.
(3) To refund outstanding bonds and matured interest couponsand to issue and sell refunding bonds for that purpose.
(b) The library board shall advertise and sell bonds in compliancewith IC 5-1-11 at any interest rate. The bonds are payable at the timethe board fixes in the authorizing resolution, but all bonds must bepayable within a period of not more than twenty (20) years from thedate the bonds are issued.
(c) Bonds issued under this section do not constitute a corporateobligation or indebtedness of any other political subdivision. Bondsissued under this section constitute an indebtedness of the librarydistrict only. Bonds issued under this chapter, and the interest, aretax exempt. The board shall apply the proceeds from the sale ofbonds only:
(1) for the purpose for which the bonds were issued; and
(2) to the extent necessary.
Any remaining balance shall be placed in a sinking fund for thepayment of the bonds and the interest on the bonds.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-10
Finances; powers
Sec. 10. The library board may do the following: (1) Adopt a resolution to make loans or issue notes to refund theloans in anticipation of revenues of the library that are expectedto be levied and collected during the term of the loans. The termof a loan made under this subdivision may not be more than five(5) years. Loans under this subdivision must be made in thefollowing manner:
(A) The resolution authorizing the loans must appropriateand pledge to payment of the loans a sufficient amount ofthe revenues in anticipation of which the loans are issuedand out of which the loans are payable.
(B) The loans must be evidenced by warrants or taxanticipation notes of the library in terms designating:
(i) the nature of the consideration;
(ii) the time and place payable; and
(iii) the revenues in anticipation of which the loans areissued and out of which the loans are payable.
(2) Borrow money from other persons.
(3) Issue, negotiate, and sell negotiable notes and bonds of thepublic library.
(4) Levy, assess, and collect, at the same time and in the samemanner as other taxes of the public library are levied, assessed,and collected, a special tax in addition to the tax authorized bysection 12 of this chapter, sufficient to pay all yearly interest onthe bonded and note indebtedness of the public library.
(5) Provide a sinking fund for the liquidation of the principal ofthe bond when the principal of the bond becomes due.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-11
Certain funds; establishment
Sec. 11. (a) A library board shall establish funds to keep moneyand securities of the public library as follows:
(1) All money collected from tax levies, interest on investments,fees, fines, rentals, and other revenues:
(A) shall be deposited into the library operating fund, exceptas otherwise provided in this section; and
(B) must be budgeted and expended in the manner requiredby law.
(2) All money received from the sale of bonds or otherevidences of indebtedness for the purpose of construction,reconstruction, or alteration of library buildings, except thepremium and accrued interest on the bonds, shall be depositedinto the construction fund. The money shall be appropriated andexpended solely for the purpose for which the indebtedness iscreated.
(3) All money derived from the taxes levied for the purpose ofretiring bonds or other evidence of indebtedness, and anypremium or accrued interest that may be received, shall bedeposited into the bond and interest redemption fund. The fundshall be used for no other purpose than the repayment of
indebtedness.
(4) Money or securities may be accumulated in any libraryimprovement reserve fund to anticipate necessary future capitalexpenditures, such as:
(A) the purchase of land;
(B) the purchase and construction of buildings or structures;
(C) the construction of additions or improvements to existingstructures;
(D) the purchase of equipment; and
(E) all repairs or replacement of buildings or equipment.
(5) Money or securities accepted and received by the libraryboard as a grant, a gift, a donation, an endowment, a bequest, ora trust may be:
(A) set aside in a separate fund or funds and shall beexpended, without appropriation, in accordance with theconditions and purposes specified by the donor; or
(B) set aside in an account with a nonprofit corporationestablished for the sole purpose of building permanentendowments within a community (referred to as a"community foundation"). The earnings on the funds in theaccount, either:
(i) deposited by the library; or
(ii) accepted by the community foundation on behalf of thelibrary;
may be distributed back to the library for expenditure,without appropriation, in accordance with the conditions andpurposes specified by the donor. A community foundationthat distributes earnings under this clause is not required tomake more than one (1) distribution of earnings in a calendaryear.
(6) All money received in payment for library services or forlibrary purchases made or to be made under the terms of acontract between two (2) or more public libraries under section7 of this chapter shall be deposited into the contractual servicefund. This money shall be:
(A) expended solely for the purposes specified in thecontract; and
(B) disbursed without further appropriation.
(b) The library board may invest excess funds in accordance withIC 5-13-9.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-12
Determination of tax rate; continuation of prior appropriation andlevy upon failure to meet certain requirements
Sec. 12. (a) The library board shall determine the rate of taxationfor the library district that is necessary for the proper operation of thelibrary. The library board shall certify the rate to the county auditor.The county auditor shall certify the tax rate to the county taxadjustment board in the manner provided in IC 6-1.1. An additional
rate may be levied under section 10(4) of this chapter.
(b) If the library board fails to:
(1) give:
(A) a first published notice to the board's taxpayers of theboard's proposed budget and tax levy for the ensuing year atleast ten (10) days before the public hearing required underIC 6-1.1-17-3; and
(B) a second published notice to the board's taxpayers of theboard's proposed budget and tax levy for the ensuing year atleast three (3) days before the public hearing required underIC 6-1.1-17-3; or
(2) finally adopt the budget and fix the tax levy not later thanSeptember 30;
the last preceding annual appropriation made for the public libraryis renewed for the ensuing year, and the last preceding annual taxlevy is continued. Under this subsection, the treasurer of the libraryboard shall report the continued tax levy to the county auditor notlater than September 30.
As added by P.L.1-2005, SEC.49. Amended by P.L.219-2007,SEC.148.
IC 36-12-3-13
Authorization of appropriations by units; deposit of funds
Sec. 13. A township may appropriate general revenue sharingfunds that the township receives under the federal State and LocalFiscal Assistance Act of 1972, as amended, to a Class 1 publiclibrary. Other units have authority under IC 36-10-2-4 to aid publiclibraries through any means available. Any general revenue sharingfunds received by a public library shall be deposited in any of thefunds outlined in section 11 of this chapter.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-14
Absence of library board member or employee; authorization;expenses
Sec. 14. When required by the interests of the library, the libraryboard may authorize a member of the library board or an individualemployed by the library to be absent from the public library. Thelibrary board may pay out of the library's funds the necessary hoteland board bills and transportation expenses of the member orindividual while absent in the interest of the public library.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-15
Funds for membership in certain associations; authority toappropriate
Sec. 15. The library board may appropriate funds necessary toprovide membership of the public library in local, state, and nationalassociations of a civic, an educational, a professional, or agovernmental nature that have as their purpose the betterment and
improvement of library operations.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-16
Authorization of disbursements; purchases
Sec. 16. (a) The library board may adopt a resolution allowingmoney to be disbursed under this section for lawful library purposes,including advertising and promoting the programs and services of thelibrary.
(b) With the prior written approval of the library board and if thelibrary board has adopted a resolution under subsection (a), claimpayments may be made in advance of library board allowance for anyof the following types of expenses:
(1) Property or services purchased or leased from the federalgovernment or the federal government's agencies and the state,the state's agencies, or the state's political subdivisions.
(2) Dues, subscriptions, and publications.
(3) License or permit fees.
(4) Insurance premiums.
(5) Utility payments or connection charges.
(6) Federal grant programs where:
(A) advance funding is not prohibited; and
(B) the contracting party posts sufficient security to coverthe amount advanced.
(7) Grants of state funds authorized by statute.
(8) Maintenance and service agreements.
(9) Legal retainer fees.
(10) Conference fees.
(11) Expenses related to the educational or professionaldevelopment of an individual employed by the library board,including:
(A) inservice training;
(B) attending seminars or other special courses ofinstruction; and
(C) tuition reimbursement;
if the library board determines that the expenditures under thissubdivision directly benefit the library.
(12) Leases or rental agreements.
(13) Bond or coupon payments.
(14) Payroll costs.
(15) State, federal, or county taxes.
(16) Expenses that must be paid because of emergencycircumstances.
(17) Expenses incurred to advertise and promote the programsand services of the library.
(18) Other expenses described in a library board resolution.
Each payment of expenses lawfully incurred for library purposesmust be supported by a fully itemized invoice or otherdocumentation. The library director must certify to the library boardbefore payment that each claim for payment is true and correct. The
certification must be on a form prescribed by the state board ofaccounts. The library board shall review and allow the claim at thelibrary board's first regular or special meeting following the paymentof a claim under this section.
(c) Purchases of books, magazines, pamphlets, films, filmstrips,microforms, microfilms, slides, transparencies, phonodiscs,phonotapes, models, art reproductions, and all other forms of libraryand audiovisual materials are exempt from the restrictions imposedby IC 5-22.
(d) The purchase of library automation systems must meet thestandards established by the Indiana library and historical boardunder IC 4-23-7.1-11(b).
As added by P.L.1-2005, SEC.49. Amended by P.L.130-2007, SEC.3.
IC 36-12-3-16.5
Electronic funds transfer
Sec. 16.5. (a) As used in this section, "electronic funds transfer"means any transfer of funds, other than a transaction originated bycheck, draft, or similar paper instrument, that is initiated through anelectronic terminal, telephone, or computer or magnetic tape for thepurpose of ordering, instructing, or authorizing a financial institutionto debit or credit an account.
(b) A library board may adopt a resolution to authorize anelectronic funds transfer method of payment of claims. If a libraryboard adopts a resolution under this subsection, the public librarymay pay money from its funds by electronic funds transfer.
(c) A public library that pays a claim by electronic funds transfershall comply with all other requirements for the payment of claimsby the public library.
As added by P.L.113-2010, SEC.162.
IC 36-12-3-17
Other powers not limited
Sec. 17. This chapter does not limit other powers granted by anyother law not in conflict with this chapter.
As added by P.L.1-2005, SEC.49.
IC 36-12-3-18
Collections and claims
Sec. 18. (a) A library board or a person designated in writing bythe library board may:
(1) collect money or library property; or
(2) compromise the amount of money;
that is owed to the library.
(b) A library board:
(1) shall determine the costs of collecting money or libraryproperty under this section; and
(2) may add the costs of collection, including reasonableattorney's fees, to money or library property that is owed andcollected under this section. (c) A library board or the library board's agent that collects moneyunder this section shall deposit the money, less the costs ofcollection, in the account required by law.
(d) A library board may compromise claims made against thelibrary.
As added by P.L.1-2005, SEC.49. Amended by P.L.113-2010,SEC.163.