IC 36-9-4
    Chapter 4. Urban Mass Transportation Systems; PublicTransportation Corporations

IC 36-9-4-1
Application of chapter
    Sec. 1. This chapter applies to all municipalities. However, afterDecember 31, 2009, this chapter does not apply to a municipality ifit is located in a county that is a member of the northern Indianaregional transportation district established under IC 8-24 and has apopulation of:
        (1) more than four hundred thousand (400,000) but less thanseven hundred thousand (700,000); or
        (2) more than one hundred forty-five thousand (145,000) butless than one hundred forty-eight thousand (148,000).
As added by Acts 1981, P.L.309, SEC.77. Amended byP.L.182-2009(ss), SEC.451.

IC 36-9-4-2
"Management" defined
    Sec. 2. For purposes of this chapter, the "management" of anurban mass transportation system is:
        (1) the board of directors, for a corporation;
        (2) the majority of the partners, for a partnership in which thepartners have equal rights in the management and control of thepartnership business;
        (3) the partners having a controlling interest, for otherpartnerships;
        (4) the proprietor, for an individual proprietorship; or
        (5) the managers, if any, or members of a limited liabilitycompany.
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 systemunder this chapter is a public use and purpose for which publicmoney 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 transportationsystem in any municipality finds that the system is unable to renderadequate service within the municipality or that there is imminentdanger that the system will be unable to render that service, themanagement of the system may apply to the municipal legislativebody for assistance under this chapter.
    (b) On receipt of an application under subsection (a) the

municipal legislative body may study whether the financial positionof the transportation system is such that the system is unable torender adequate service within the municipality or that there isimminent danger that the system will be unable to render that service.The legislative body shall pay for these studies by appropriation fromthe general fund of the municipality, and the money need not berestored 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; typesof assistance
    Sec. 5. (a) The municipal legislative body may furnish the urbanmass transportation system with the financial assistance necessary toenable the system to provide adequate service within themunicipality, if the legislative body finds:
        (1) that the system is unable to render that service or that thereis imminent danger that the system will be unable to render thatservice; 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 otherplaces where members of the general public congregate;
        (C) necessary to expand the economic and social opportunitiesavailable to residents of the municipality, especially those whocannot freely move about without the services of the system;
        (D) a substantial factor in maintaining real property values inthe municipality; or
        (E) a substantial factor in providing public housing,redevelopment of blighted areas, and publicly owned offstreetparking facilities.
    (b) The municipal legislative body may furnish assistance underthis section by:
        (1) making grants to the system;
        (2) purchasing buses or real property from the system or fromany 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 grantsunder section 5 of this chapter, it must enter into and confirm byordinance a contract with the urban mass transportation system. Thecontract must provide for the payment of money by the municipalityto the system in the amounts and at the times determined by theparties, and may include other terms and conditions determined bythe 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 hasceased operations within the municipality.
    (b) The municipal legislative body may pay the grants byappropriation from the general fund of the municipality or from aspecial 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 andleases; appraisals
    Sec. 7. (a) If the municipal legislative body decides to purchasebuses or real property, or both, from the urban mass transportationsystem under section 5 of this chapter, it must enter into and confirmby 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 theparties; and
        (2) lease the buses or property purchased to the system for usein providing mass transportation within the municipality.
    (b) The municipality must pay the system a sum equal to the fairvalue of the buses or real property purchased, less the amountoutstanding under any mortgage, contract of sale, or other securitydevice that may attach to the buses or real property. The municipalitymay immediately pay off any such outstanding amount or assumeany such mortgage, contract of sale, or other security device.
    (c) The fair value of the buses or real property shall be determinedby three (3) appraisers experienced in the appraisal of buses or realproperty. One (1) of the appraisers shall be appointed by themunicipality and one (1) by the system. These two (2) appraisersshall then appoint a third appraiser. However, if they are unable to doso, each shall submit the names of three (3) appraisers to the circuitcourt for the county in which the municipality is located and thecourt shall appoint the third appraiser from the names submitted.
    (d) If the municipal legislative body decides to purchase bothbuses and real property for lease to an urban mass transportationsystem, three (3) appraisers shall be appointed to determine the fairvalue of the buses and an additional three (3) appraisers shall beappointed to determine the fair value of the real property. Each groupof three (3) appraisers shall be appointed in the manner prescribed bysubsection (c).
    (e) Before making their appraisal, the appraisers must appearbefore the clerk of the legislative body and take an oath to make ajust and true appraisal of the buses or real property.
    (f) A lease of buses or real property by a municipality to a systemunder this section must incorporate provisions for rental and otherterms and provisions that the municipal legislative body considersnecessary under this chapter. The municipality and the system mayenter into additional contracts and leases during the term of the lease.

The term of a lease of buses under this section may not exceedtwenty-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 thansystems; contracts and leases
    Sec. 8. (a) If, under section 5 of this chapter, the municipallegislative body decides to purchase buses or real property, or both,for the urban mass transportation system from a source other than thesystem, it must enter into and confirm by ordinance a contract andlease requiring the municipality to:
        (1) purchase the buses or real property; or
        (2) lease the buses or property purchased to the system for usein providing mass transportation within the municipality.
    (b) A lease of buses or real property by a municipality to a systemunder this section must incorporate provisions for rental and otherterms and provisions that the municipal legislative body considersnecessary under this chapter. The municipality and the system mayenter into additional contracts and leases during the term of the lease.The term of a lease of buses under this section may not exceedtwenty-five (25) years.
    (c) The purchase of buses under this section is governed by thegeneral 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 transportationsystem in any municipality finds that public acquisition of the systemis necessary to enable the system to render adequate service withinthe municipality, the management of the system may request themunicipal legislative body to determine whether the public shouldacquire the system. The management may withdraw this request onlyif:
        (1) at least six (6) months have passed since the date of therequest; and
        (2) the municipal legislative body did not adopt an ordinance toacquire the system within six (6) months from the date of therequest.
    (b) On receipt of the request, the municipal legislative body shallstudy whether it is in the public interest that the public acquire thesystem. The legislative body shall pay for these studies by anappropriation from the general fund of the municipality, which neednot 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 ofpublic transportation corporation
    Sec. 10. (a) If, as a result of its studies under section 9 of thischapter, the municipal legislative body finds that public acquisitionof the system would fulfill one (1) or more of the conditions listed insection 5(a)(2) of this chapter, it may adopt an ordinance:
        (1) declaring that public acquisition of the system is in thepublic interest of the municipality;
        (2) providing for the creation of a public transportationcorporation;
        (3) specifying the number of directors of the corporation; and
        (4) setting forth the boundaries of the taxing district of thecorporation.
    (b) The taxing district set forth in the ordinance may include only:
        (1) all territory inside the corporate boundaries of themunicipality; and
        (2) the suburban territory, as defined in IC 36-9-1-9, that isserved 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 studywhether it is in the public interest that a system be established andmaintained under this chapter by the municipality. The legislativebody shall pay for these studies by an appropriation from the generalfund of the municipality, which need not be restored to the generalfund.
    (b) If the legislative body finds as a result of its studies that theestablishment and maintenance of a system would fulfill any one (1)or more of the conditions listed in section 5(a)(2) of this chapter, itmay 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 thatwill serve the municipality, under section 6 of this chapter;
        (2) enter into a contract to purchase buses and real property forlease to a system that will serve the municipality, under section7 or 8 of this chapter; or
        (3) establish a public transportation corporation, under section10 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 separatemunicipal 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 afterannexation and disannexation; incorporation of additionalterritory
    Sec. 13. (a) After the creation of a public transportationcorporation, territory may be added to the taxing district of thecorporation only in accordance with this section.
    (b) If the municipality finalizes an annexation or disannexation ofterritory, the boundaries of the taxing district of the corporationchange so as to remain coterminous with the new boundaries of themunicipality. Such a change takes effect when the annexation ordisannexation 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 notwithin a municipality, the board of directors of the corporation may,by resolution, incorporate all or part of the platted subdivision orunplatted lands into the taxing district. Such a request must be signedand certified as correct by the resident freeholders or landownersmaking the request, and the original must be preserved in the recordsof the board. The resolution of the board incorporating an area intothe taxing district must be in writing and must include an accuratedescription of that area. A certified copy of the resolution, signed bythe chairman and secretary of the board, together with a mapshowing the boundaries of the taxing district and the location of theadditional areas, shall be delivered to the auditor of the county withinwhich the corporation is located and shall be properly indexed andkept in the permanent records of the offices of the auditor.
    (d) Upon written request by ten (10) or more resident freeholdersof a platted subdivision or unplatted territory in the same county asa public transportation corporation but not within a municipality, theboard of directors of the corporation may define the limits of an areathat:
        (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 thelocation and limits of the area, must be given by publication inaccordance with IC 5-3-1. The area may then be incorporated into thetaxing district upon request, in the manner prescribed by subsection(c).
    (e) Property in territory added to the taxing district undersubsection (c) or (d) is, as a condition of the special benefits itsubsequently receives, liable for its proportion of all taxessubsequently levied by the public transportation corporation. Theproportion of taxation shall be determined in the same manner aswhen 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; publictransportation corporations; city in county having second largestpopulation
    Sec. 13.5. (a) This section applies to a county having a populationof more than two hundred thousand (200,000) but less than threehundred thousand (300,000).
    (b) The taxing district of a public transportation corporation underthis section includes all the territory inside the corporate boundariesof the two (2) cities in the county having the largest populations andsuch suburban territory as provided in section 13 of this chapter.
    (c) This section applies upon the adoption of substantiallyidentical ordinances approving subsection (b) by both:
        (1) the public transportation corporation incorporating theadditional territory; and
        (2) the legislative body of the city being added to the taxingdistrict of the public transportation corporation.
    (d) Whenever the city in the county having the second largestpopulation becomes a part of the public transportation corporation,then two (2) additional directors representing that city shall beappointed to the board of directors of the corporation. The directorsmust be residents of that city and are entitled to all of the rights,privileges, powers, and duties of directors under this chapter. Theexecutive and the legislative body of that city shall each appoint one(1) director. These two (2) directors must not be of the same politicalparty. The director appointed by the legislative body shall serve fora term of one (1) year, and the director appointed by the executiveshall serve for a term of two (2) years. Upon the expiration of therespective terms, successors shall be appointed in accordance withsection 18 of this chapter.
    (e) If the city in the county having the second largest populationappropriates money to support the public transportation corporationin a particular year, and if the territory of that city subsequentlybecomes a part of the taxing district of the public transportationcorporation in that year and is subject to a separate property tax levyfor transportation services, the maximum permissible levy of that cityfor the year following the particular year used to compute theproperty tax levy limit under IC 6-1.1-18.5 is decreased, and themaximum permissible levy of the public transportation corporationfor the particular year used to compute the property tax levy limitunder IC 6-1.1-18.5 is increased, by an amount equivalent to thecurrent contract amount to be paid by that city to the publictransportation corporation for transportation services provided to thatcity in the particular year.
    (f) The public transportation corporation shall establish a singleproperty tax rate applicable to the taxing district of the publictransportation corporation, including the territory of the city in the

county having the second largest population that is included in thepublic transportation corporation under this section. The initialpermissible levy to be raised by this rate equals the sum of theamount raised by the levy of the public transportation corporation inthe previous taxable year plus an amount equivalent to the currentcontract amount to be paid in the calendar year 1982 by the city inthe county having the second largest population to the publictransportation corporation. The permissible levy for the subsequentyears shall be computed in accordance with IC 6-1.1-18.5.
    (g) If the city in the county having the second largest populationis excluded from the public transportation corporation in asubsequent year, and that city is no longer subject to a separateproperty tax levy for transportation services, the maximumpermissible levy of the public transportation corporation for thatsubsequent year used to compute the property tax levy limit underIC 6-1.1-18.5 is decreased, and the maximum permissible levy of thatcity for that subsequent year used to compute the property tax levylimit under IC 6-1.1-18.5 is increased, by the amount of the productof the public transportation property tax rate for that subsequent yearmultiplied by the assessed value in that subsequent year of all taxableproperty in that city that is excluded from the public transportationcorporation.
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 ofdirectors
    Sec. 14. (a) A public transportation corporation is under thecontrol of a board of directors, which shall exercise the executiveand legislative powers of the corporation.
    (b) Directors must be residents of the taxing district of thecorporation.
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 transportationcorporation 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 termsof one (1) and two (2) years, respectively; and
        (2) three (3) directors appointed by the city legislative body, forterms of two (2), three (3), and four (4) years, respectively.
    (c) If the board of directors consists of seven (7) directors, theyare:
        (1) three (3) directors appointed by the city executive, for termsof one (1), two (2), and three (3) years, respectively; and        (2) four (4) directors appointed by the city legislative body, forterms 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 transportationcorporation in a town consists of either five (5) or seven (7)directors, as determined by the town legislative body. All thedirectors 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, theyare:
        (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 tothe board of directors under section 15 or 16 of this chapter so thatthe number of directors belonging to either of the two (2) majorpolitical parties does not exceed the number belonging to the otherby more than one (1). If the appointing authorities cannot agree onthe manner in which this will be done, the municipal executive shallmake the appointment that results in one (1) party having moredirectors 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 ofa public transportation corporation, the appointing authority shallappoint a director for a term of four (4) years and until his successoris appointed and qualified.
    (b) If a director leaves office before his term has expired, theappointing authority shall appoint a new director to serve theremainder 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 beimpeached 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 isentitled to:
        (1) compensation of not more than one thousand two hundreddollars ($1,200) annually, as determined in the budget; and
        (2) reimbursement for any expenses incurred in the interest ofthe 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 transportationcorporation shall elect one (1) director as chairman of the board andone (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 transportationcorporation shall, by rule, provide for regular meetings to be held atdesignated intervals throughout the year.
    (b) The board shall convene in a special meeting whenever sucha meeting is called by the chairman or by a majority of the directors.Notice of a special meeting must be given by publication inaccordance 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 publictransportation corporation constitutes a quorum for a meeting.
    (b) The board may act officially by affirmative vote of a majorityof those present at the meeting at which the action is taken.
    (c) The board shall keep a written record of its proceedingsavailable for public inspection in its office. The record must includethe aye and nay vote on the passage of each item of business.
    (d) The board shall adopt rules of procedure under which itsmeetings are to be held. The board may suspend these rules byunanimous vote of the members present at any meeting, but it may

not suspend them beyond the meeting at which the suspensionoccurs.
    (e) The board has the same power to supervise its internal affairsas 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 mayintroduce a proposed draft of an ordinance at a meeting of the boardof directors. A director who introduces a proposed draft of anordinance must provide, at the time of introduction, a written copyof the proposed draft. The board must place the date of introductionand a distinguishing number on each proposed draft of an ordinance.
    (b) The board must publish a notice that the proposed ordinanceis pending final action by the board. The notice must be published inaccordance with IC 5-3-1. However, notice of an ordinanceestablishing a budget must be given in accordance with the statutesgoverning budgets of the municipality served by the corporation.
    (c) The board must include in the notice reference to the subjectmatter of the proposed ordinance and the time and place a hearing onit will be held, and must indicate that the proposed draft of anordinance is available for public inspection at the office of the board.The board may include in one (1) notice a reference to the subjectmatter of each draft of an ordinance that is pending and for whichnotice has not previously been given. The reference to the subjectmatter is adequate if it is sufficient to advise the public of the generalsubject matter of the proposed ordinance.
    (d) The board must, not later than the date of notice of theintroduction of a proposed ordinance, place five (5) copies of theproposed 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 undersection 24 of this chapter, the board of directors of a publictransportation corporation may take final action on the proposedordinance or may postpone final consideration of it to a designatedmeeting in the future without giving additional notice. Beforeadopting an ordinance, the board must give an opportunity to anyperson present at the meeting to give testimony or evidence for oragainst the proposed ordinance, under the rules as to the number ofpersons who may be heard and the time limits adopted by the board.
    (b) Whenever the board adopts an ordinance, it shall designate theeffective date of the ordinance at the same meeting. If the board failsto designate the effective date of the ordinance in the record of theproceedings of the board, the ordinance takes effect fourteen (14)days after its passage.    (c) Whenever the board adopts an ordinance, it shall cause copiesof 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 transportationcorporation may provide for the printing of all or part of theordinances of the corporation in pamphlet form or in bound volumes,and may distribute them without charge or may charge the cost ofprinting 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 transportationcorporation shall appoint a qualified person to serve as controller.The controller is the chief fiscal officer of the corporation, and hemust give bond in the sum and with the conditions prescribed by theboard and with surety to the approval of the board.
    (b) All money payable to the public transportation corporationshall 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 theaccounts that the board designates by ordinance.
    (c) The controller shall keep an accurate account of allappropriations made and all taxes levied by the public transportationcorporation, all money owing or due to the corporation, and allmoney received and disbursed by the corporation, and he shallpreserve all vouchers for payments and disbursements.
    (d) The controller shall issue all warrants for the payment ofmoney from the funds of the public transportation corporation, buthe may not issue a warrant for the payment of a claim until the claimhas been allowed in accordance with the procedure prescribed by therules of the board. All warrants must be countersigned by thechairman of the board.
    (e) If the controller is called upon to issue a warrant, he mayrequire evidence that the amount claimed is justly due, and for thatpurpose he may summon before him any officer, agent, or employeeof the public transportation corporation and examine him on oath oraffirmation relating to the warrant. The controller may administer theoath or affirmation.
    (f) Notwithstanding subsections (d) and (e), the board mayauthorize the controller to pay a per diem in advance to a publictransportation employee or board member who will attend a trainingsession or other special business meeting required as a duty of thepublic transportation employee or board member.
    (g) Each year, and more often if required by the board, thecontroller shall submit his records of account as controller for auditto the certified public accountant or firm of certified publicaccountants designated by the board. The certified public accountant

or firm of certified public accountants shall submit to the board acertified report of the records of account, exhibiting the revenues,receipts, and disbursements, the sources from which the revenues andfunds are derived, and the manner in which they have beendisbursed.
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 transportationcorporation and the management of the urban mass transportationsystem shall negotiate for the purchase of all the real and personalproperty, licenses, rights, and interests of the system by thecorporation, unless the system shows that part of its property is notnecessary for the proper operation of the system.
    (b) If the parties agree upon the terms and conditions of thepurchase, the board shall adopt an ordinance incorporating thoseterms and conditions.
    (c) If the parties cannot agree upon the terms and conditions of thepurchase, the board may adopt an ordinance directing the acquisitionof the property that has been the subject of the negotiations througheminent 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; contractsor leases for use of system
    Sec. 29. (a) Upon acquisition of the necessary property by apublic transportation corporation, the board of directors of thecorporation 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 hasexecutive personnel with experience and skill applicable to thesuperintendence of the operation and maintenance of an urban masstransportation system. The contract must require the organization tofurnish its services and the services of its personnel for thesuperintendence of the system.
    (c) The maximum term of a contract or lease executed under thissection is twenty-five (25) years.
    (d) A contract or lease executed under this section must beconfirmed 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 consolidatedcity.
    (b) A public transportation corporation may provide regularlyscheduled passenger service to specifically designated locationsoutside the system's operational boundaries as described inIC 36-9-1-9 if all of the following conditions are met:
        (1) The legislative body of the municipality approves anyexpansion of the service outside the municipality's corporateboundaries.
        (2) The expanded service is reasonably required to do any of thefollowing:
            (A) Enhance employment opportunities in the new servicearea 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 servicedoes not extend beyond the boundary of the county in which thecorporation is located.
    (c) Notwithstanding section 39 of this chapter, a publictransportation corporation may provide demand responsive serviceoutside of the system's operational boundaries as described inIC 36-9-1-9 if the conditions listed in subsection (b) are met.
    (d) The board may contract with a private operator for theoperation of an expanded service under this section.
    (e) Subsection (b)(3) does not apply to a special purpose bus (asdefined in IC 20-27-2-10) or a school bus (as defined inIC 20-27-2-8) that provides expanded service for a purpose permittedunder 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 transportationcorporation 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 interestsnecessary or convenient for the exercise of its powers under thischapter.
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 transportationcorporation may adopt a seal to be impressed upon its instrumentsand may provide for the impression of that seal by printed orlithographic facsimile. An executed instrument bearing the seal ofthe board is prima facie evidence of its execution by the board andthat 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 transportationcorporation may exercise the power of eminent domain for thecondemnation of any interest in real or personal property for usewithin the taxing district of the corporation.
    (b) Proceedings for the condemnation of property by the board aregoverned by IC 32-24-1 to the extent it is not in conflict with thischapter.
    (c) The board may not institute proceedings until it has adoptedan ordinance generally describing the property to be acquired,declaring that the public interest and necessity require the acquisitionby the corporation of the property involved, and declaring that theacquisition is necessary for the establishment, development,extension, or improvement of the system. The ordinance isconclusive evidence of the public necessity of the proposedacquisition and that the proposed acquisition is planned in a mannermost compatible with the greatest public good and the least privateinjury.
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 transportationcorporation may contract with any person upon the terms andconditions the board considers best for the corporation including thefollowing:
        (1) Contracting for self-insurance protection of its property orliability under IC 34-13-3.
        (2) Engaging in commissions or entering into agreements forthe mutual insurance or sharing of risks for liability or propertydamage.
        (3) Agreeing to join with other municipal corporations for themutual 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 transportationcorporation may enter into agreements with any urban masstransportation system operating in territory contiguous to the taxingdistrict of the corporation, for:
        (1) the operation and maintenance of that system, including theuse, sale, or lease of the real and personal property necessaryfor operation of the system; or
        (2) the transfer of passengers between that system and thesystem owned by the corporation, with a special rate to becharged 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 transportationcorporation 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 standardsof service and may change them whenever the board considers achange advisable. However, the board's powers under this section aresubject to regulation by the department of state revenue as providedby 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 transportationcorporation may, in the name of the corporation, sue or be sued incourt. Service of process shall be made by service upon the secretaryof the board, and notice must be served upon the secretary in themanner 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 transportationcorporation may appoint or employ a general manager, accountants,attorneys, traffic engineers, drivers, clerks, secretaries, guards,laborers, and other employees, and may prescribe and define theirduties, regulate their compensation, discharge them, and appoint oremploy their successors. Employees shall be selected without regardto race, religion, or any personal affiliation. The board shall selectthe general manager on the basis of his fitness for the position, taking

into account his executive ability and his knowledge of andexperience in the field of mass public transportation.
    (b) The board shall bargain collectively and enter into writtencontracts with authorized labor organizations representing employeesother than executive, administrative, or professional personnel. Thesecontracts may provide for the binding arbitration of disputes, wages,salaries, hours, working conditions, health and welfare, insurance,vacations, holidays, sick leave, seniority, pensions, retirement, andother 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 transportationcorporation may make traffic surveys, population surveys, and anyother surveys and studies it considers useful in the operation of urbanmass 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 transportationcorporation may establish and operate a "demand-responsive" or"dial-a-ride" transportation system as a part of its urban masstransportation system within the taxing district of the corporation.The rates and charges for the system and all related criteria are at thesole 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 transportationcorporation 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 acquiresan urban mass transportation system under this chapter, theemployees of the system must be protected as follows:
        (1) The employees of the system must be retained to the fullestextent consistent with sound management, and those terminatedor laid off must be assured priority of reemployment.
        (2) The individual employees must be retained in positions thesame as, or no worse than, their positions before the acquisitionof the system.
        (3) The rights, privileges, and benefits of the employees underany collective bargaining agreement are not affected, and thecorporation shall assume the duties of the system under theagreement.        (4) The rights, privileges, and benefits of the employees underany pension or retirement plan are not affected, and thecorporation shall assume the duties of the system under theplan.
    (b) If a public transportation corporation acquires and leases anurban mass transportation system, or enters into a contract for theoperation of the system under this chapter, the lease or contract mustprovide 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 corporationthat expends money for the establishment or maintenance of an urbanmass transportation system under this chapter may acquire the moneyfor these expenditures:
        (1) by issuing bonds under section 43 or 44 of this chapter;
        (2) by borrowing money made available for such purposes byany source;
        (3) by accepting grants or contributions made available for suchpurposes by any source;
        (4) in the case of a municipality, by appropriation from thegeneral fund of the municipality, or from a special fund that themunicipal legislative body includes in the municipality'sbudget; or
        (5) in the case of a public transportation corporation, by levyinga tax under section 49 of this chapter or by recommending anelection to use revenue from the county option income taxes, asprovided in subsection (c).
    (b) Money may be acquired under this section for the purpose ofexercising 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 forlease to an urban mass transportation system, including thepayment of any amount outstanding under a mortgage, contractof sale, or other security device that may attach to the buses orreal property;
        (4) the acquisition by a public transportation corporation ofproperty of an urban mass transportation system, including thepayment of any amount outstanding under a mortgage, contractof sale, or other security device that may attach to the property;
        (5) the operation of an urban mass transportation system by apublic transportation corporation, including the acquisition ofadditional property for such a system; and
        (6) the retirement of bonds issued and outstanding under thischapter.
    (c) This subsection applies only to a public transportationcorporation located in a county having a consolidated city. In order

to provide revenue to a public transportation corporation during ayear, the public transportation corporation board may recommendand the county fiscal body may elect to provide revenue to thecorporation from part of the certified distribution, if any, that thecounty is to receive during that same year under IC 6-3.5-6-17. Tomake the election, the county fiscal body must adopt an ordinancebefore September 1 of the preceding year. The county fiscal bodymust specify in the ordinance the amount of the certified distributionthat is to be used to provide revenue to the corporation. If such anordinance is adopted, the county fiscal body shall immediately senda 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 issuebonds to obtain all or part of the money to be expended for theestablishment and maintenance of an urban mass transportationsystem under this chapter, the legislative body may issue the bondsof the municipality in the same manner as bonds for the generalpurposes of the municipality. However, the bonds may be sold to thefederal 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 transportationcorporation decides to issue bonds to obtain all or part of the moneyto be expended for the establishment and maintenance of an urbanmass transportation system under this chapter, the board shall adoptan ordinance directing the issuance of the bonds. The board shallcertify 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 andattested 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 shallbe issued in the same manner as bonds for the general purposes ofthe municipality served by the public transportation corporation.However, the bonds may be sold to the federal government at privatesale and without a public offering.
    (e) In addition to the general power to issue bonds for theestablishment and maintenance of a system, the board may issuebonds specifically:
        (1) for the payment of any judgment against the corporation;and
        (2) to establish or maintain a program of self-insurance ormutual 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) yearsfrom 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, andthe income from them are exempt from taxation to the extentprovided 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 givingnotice of those petitions;
        (2) giving notice of a hearing on the appropriation of theproceeds of the bonds;
        (3) the right of taxpayers to appear and be heard on theproposed appropriation;
        (4) the approval of the appropriation by the department of localgovernment finance; and
        (5) the right of:
            (A) taxpayers and voters to remonstrate against the issuanceof bonds in the case of a proposed bond issue described byIC 6-1.1-20-3.1(a); or
            (B) voters to vote on the issuance of bonds in the case of aproposed 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 thischapter or to prevent their issue and sale may not be instituted afterthe date set for the sale of the bonds, and the bonds are incontestableafter 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 transportationcorporation that issues bonds under this chapter shall levy a specialtax each year upon all the property within the taxing district of thecorporation. The tax shall be levied in such a manner as to meet andpay the principal of the bonds as they mature, together with allaccruing interest.
    (b) The county treasurer shall collect the tax in the same manneras other taxes are collected. As the treasurer collects the tax, he shallremit it to the controller of the public transportation corporation.
    (c) In determining the amount of the levy, the board of directorsshall consider any surplus of accumulated revenue derived from theoperation of the urban mass transportation system, above the sum

considered necessary to be applied upon or reserved for the paymentof the operating and capital expenditures of the system, includingexpenditures for the replacement of and additions to the property ofthe system and reserves established for the depreciation of theproperty of the system. If the board finds that this surplus issufficient, it may apply all or part of the surplus to the payment of theprincipal 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 transportationcorporation may:
        (1) borrow money in anticipation of receipt of the proceeds oftaxes that have been levied by the board and have not yet beencollected; and
        (2) evidence this borrowing by issuing warrants of thecorporation.
The money that is borrowed may be used by the corporation forpayment of principal and interest on its bonds or for payment ofcurrent operating expenses.
    (b) The warrants:
        (1) bear the date or dates;
        (2) mature at the time or times on or before December 31following the year in which the taxes in anticipation of whichthe warrants are issued are due and payable;
        (3) bear interest at the rate or rates and are payable at the timeor 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 outsideIndiana;
        (7) are payable in the medium of payment;
        (8) are subject to redemption upon the terms, including a pricenot exceeding par and accrued interest; and
        (9) may be executed by the officers of the corporation in themanner;
provided by resolution of the board of directors. The resolution mayalso authorize the board to pay from the proceeds of the warrants allcosts incurred in connection with the issuance of the warrants.
    (c) The warrants may be authorized and issued at any time afterthe board of directors levies the tax or taxes in anticipation of whichthe warrants are issued.
    (d) The warrants may be sold for not less than par value afternotice inviting bids has been published in accordance with IC 5-3-1.The board of directors may also publish the notice inviting bids inother newspapers or financial journals.
    (e) After the warrants are sold, they may be delivered and paid forat 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 notexceed eighty percent (80%) of the levy or levies, as the amount ofthe levy or levies is certified by the department of local governmentfinance, or as is determined by multiplying the rate of tax as finallyapproved by the total assessed valuation of taxable property withinthe taxing district of the public transportation corporation as mostrecently certified by the county auditor.
    (g) For purposes of this section, taxes for any year are consideredto be levied when the board of directors adopts the ordinanceprescribing the tax levies for the year. However, warrants may not bedelivered and paid for before final approval of a tax levy or levies bythe county board of tax adjustment (or, if appealed, by thedepartment of local government finance) unless the issuance of thewarrants has been approved by the department of local governmentfinance.
    (h) The warrants and the interest on them are not subject tosections 43 and 44 of this chapter and are payable solely from theproceeds of the tax levy or levies in anticipation of which thewarrants were issued. The authorizing resolution must pledge asufficient amount of