CHAPTER 1.5. STATE RAIL PRESERVATION LAW
IC 8-3-1.5
Chapter 1.5. State Rail Preservation Law
IC 8-3-1.5-1
Definitions
Sec. 1. As used in this chapter:
(a) "Agent for the State" means the department as agent for thestate as that term is used in the Regional Rail Reorganization Act of1973.
(b) "Department" refers to the Indiana department oftransportation established under IC 8-23-2-1.
(c) "Includes" and variants of it, should be read as if the phrase"but is not limited to" was also set forth.
(d) "Person" means individuals, corporations, partnerships, orforeign and domestic associations, including railroads.
(e) "Rail properties" means assets or rights, owned, leased, orotherwise controlled by a railroad or other persons which are used,or useful, in rail transportation service; however, the term railproperties does not include any properties owned, leased orotherwise controlled by a railroad not in reorganization unless itconsents to such property's inclusion in the particular transaction.
(f) "Rail service" means both freight and passenger service.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.40; P.L.18-1990, SEC.36.
IC 8-3-1.5-2
Authority of Indiana department of transportation
Sec. 2. The department is hereby authorized to exercise thosepowers necessary for the state to qualify for rail service continuationsubsidies pursuant to the provisions of the federal Regional RailReorganization Act of 1973, including authority:
(a) to establish a state plan for rail transportation and local railservices;
(b) to administer and coordinate the state plan;
(c) to provide in the plan for the equitable distribution of federalrail service continuation subsidies among state, local, and regionaltransportation authorities;
(d) to promote, supervise, and support safe, adequate, andefficient rail services;
(e) to employ sufficient trained and qualified personnel for thesepurposes, subject to IC 8-23-2-3.
(f) to maintain adequate programs of investigation, research,promotion, and development in connection with such purposes andto provide for public participation therein;
(g) to provide satisfactory assurances on behalf of the State thatsuch fiscal control and fund accounting procedures will be adoptedby the State as may be necessary to assure proper disbursement ofand account for federal funds paid to the State as rail servicecontinuation subsidies;
(h) to comply with the regulations of the Secretary of
Transportation of the United States Department of Transportationaffecting federal rail service continuation programs; and
(i) to do all things otherwise necessary to maximize federalassistance to the State under Title IV of the Federal Regional RailReorganization Act of 1973.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.41; P.L.1-1994, SEC.34.
IC 8-3-1.5-3
Financial assistance for continuance of rail service
Sec. 3. The department is hereby authorized to provide financialassistance, within the limits of the funds appropriated for thispurpose, for the continuation of operations and maintenance of anyrailroad within the State as provided for in the federal Regional RailReorganization Act of 1973, or other relevant federal legislation. Thedepartment may also act as the agent in cooperation with any localor regional transportation authority, local government units, anygroup of rail users, or any person, and the federal government in anyrail service continuation program.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.42.
IC 8-3-1.5-4
Information to be provided to department
Sec. 4. The department in performing its planning function isauthorized to request any railroad to provide such data andinformation as are necessary for the planning process. Railroadsoperating within the State shall provide such information within sixty(60) days of the date of the request. Should the railroad fail toprovide such information, the department is hereby granted subpoenapower for securing this data. The department shall exercise allnecessary caution to avoid disclosure of confidential informationsupplied under this section.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.43.
IC 8-3-1.5-5
Acquisition of rail or nonrail property
Sec. 5. (a) The department, as sole agent for the State, mayacquire by purchase or condemnation or otherwise any portion orportions of any rail properties. In addition, the department mayacquire any other non-rail property found by the department to benecessary for the operation of a railroad.
(b) The authority to acquire rail properties extends to railproperties both within and not within the jurisdiction of the InterstateCommerce Commission. It also includes rail properties within thepurview of the Regional Rail Reorganization Act of 1973 and anyother relevant federal legislation.
(c) The acquisition of the rail properties, by the department is forthe purpose of the continued and future operation of a railroad
deemed to be in the public interest. The acquisition of the railproperties, and other non-rail property, is declared to be a publicpurpose and to be reasonably necessary. This action may be taken inconcert with another State or States as necessary to insure continuedrail service in this State.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.44.
IC 8-3-1.5-6
Disposition of property
Sec. 6. The department may sell, transfer, or lease all, or any partof the rail properties acquired under the provisions of this chapter toany responsible person, firm, or corporation for continued operationof a railroad, or other public purpose, provided that approval for thecontinued operation, or other public purposes, is granted by theInterstate Commerce Commission of the United States, wheneverapproval is required. The sale, transfer, or lease shall be for a price,and subject to any further terms and conditions which the departmentfeels are necessary and appropriate to effectuate the purposes of thischapter.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.45.
IC 8-3-1.5-7
Interstate commerce commission certificate
Sec. 7. After acquiring any railroad lines within the State, thedepartment shall assist any responsible person, firm, or corporationto secure, as promptly as possible, any order or certificate requiredby the Interstate Commerce Commission for the performance ofrailroad service. The department shall also give any assurances orguarantees which are necessary or desirable to carry out the purposesof this chapter.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.46.
IC 8-3-1.5-8
Condemnation power
Sec. 8. If the department is unable to acquire necessary railproperties by purchase or otherwise, it may proceed to condemn allor any portion of such rail properties. In all condemnationproceedings, the legislative determination set forth in this chapterthat the acquisition is for a public purpose and is reasonablynecessary is prima facie evidence of the purpose and necessity.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.47.
IC 8-3-1.5-9
Condemnation procedure
Sec. 9. The procedure for any necessary condemnationproceedings is set forth in IC 32-24-1.(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.48; P.L.2-2002, SEC.40.
IC 8-3-1.5-10
Assuring good title
Sec. 10. The department may take whatever steps are necessary inorder to determine the absolute fee simple title ownership of all railproperties of any railroad within the State. The determination mayinclude the status of the rail properties with respect to easements,rights-of-way, leases, reversionary rights, fee simple title ownership,and any and all related title matters. The department may retainattorneys, experts, or other assistants as is necessary to make the titledetermination.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.49.
IC 8-3-1.5-11
Sale of rail properties
Sec. 11. All rail properties within the State offered for sale by therailroad corporation after June 30, 1975 shall be offered for sale tothe department in the first instance.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.50.
IC 8-3-1.5-12
Cooperation with other states
Sec. 12. The department may cooperate with other states inconnection with the purchase of any rail properties within this State.The department may also acquire trackage rights in other States andrail properties lying in other States in order to carry out the intentionsand purposes of this chapter. In carrying out the authority conferredby this section, the department may enter into general contractualarrangements, including joint purchasing and leasing of railproperties, with other States.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.51.
IC 8-3-1.5-13
Acquisition of property by political subdivisions
Sec. 13. In weighing the varied interests of the residents of thisstate, the department shall give consideration, as best as the situationallows, to the individual interest of any county, city, or townexpressing a desire to acquire a portion, or all, of the abandoned realestate located within the jurisdiction. The department may exerciseits powers under this chapter to acquire the abandoned property forsubsequent conveyance to the county, city, or town.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.52.
IC 8-3-1.5-14 Funding
Sec. 14. The department may utilize federal funds, grants, gifts,or donations which are available, and any sums that are appropriated,in carrying out the purposes of this chapter. The department may alsoapply for discretionary or other funds available under the provisionsof the Regional Rail Reorganization Act of 1973, or other federalprograms described in IC 8-23-3-1.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.53; P.L.1-2009, SEC.66.
IC 8-3-1.5-15
Acquisition or modernization loans
Sec. 15. The department may apply for an acquisition andmodernization loan, or a guarantee of a loan, pursuant to section 403of the Regional Rail Reorganization Act of 1973, or any other federalprograms, within the limit of funds appropriated for those purposessubject to IC 8-23-3-1 through IC 8-23-3-6.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.54; P.L.1-2009, SEC.67.
IC 8-3-1.5-16
Delinquent state railroad taxes; offset against purchase cost
Sec. 16. In addition to any other funds available to carry out thepurposes of this chapter, there are appropriated, and the departmentmay utilize, any delinquent state taxes from any railroad entity, andthe interest due on taxes to the date of acquisition, as an offsetagainst the purchase cost of any rail properties purchased from thatrailroad entity.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.55.
IC 8-3-1.5-17
Railroad equipment; acquisition
Sec. 17. The department is authorized to purchase any railroadrolling stock, equipment, and machinery necessary for the operationand maintenance of any rail properties purchased by it on behalf ofthe State with any funds made available for this purpose. Thedepartment may also acquire, and have available, a pool ofequipment and machinery which may be utilized by the operators ofthe rail properties for the purpose of track maintenance, and otherrelated railroad activities, upon terms and conditions determined bythe department.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.56.
IC 8-3-1.5-18
Contracts for rebuilding and maintaining rail properties
Sec. 18. The department may contract for the rebuilding of anyrail properties acquired pursuant to this chapter, within theprovisions of the Regional Rail Reorganization Act of 1973, or any
other appropriate legislation. The department may also spend anysums appropriated, as well as any other available funds, for themodernization and rebuilding of any rail properties owned by thestate or by a private carrier. The department may do any maintenanceon any rail properties owned by the State as is necessary in the publicinterest.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.57.
IC 8-3-1.5-19
Contracts to maintain or improve rail transportation service
Sec. 19. The department may contract with any person, firm,corporation, agency, or governmental unit to provide, maintain, orimprove rail transportation service on the rail properties acquired bythe State under this chapter.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.58.
IC 8-3-1.5-20
Transfer of rail properties to other state departments or agenciesor political subdivisions; sale of properties
Sec. 20. Whenever the department determines that any railproperties acquired by the state are no longer needed for railroadpurposes, it may permanently or temporarily transfer the railproperties to any other state department or agency, or politicalsubdivision of the state, which shall utilize the properties for a publicpurpose. Whenever more than one (1) department or agency, orpolitical subdivision, wishes to utilize the property, the departmentshall resolve such a conflict and make a prompt determination of thereasonable and proper order of priority, taking into consideration anyapplicable state plans, policies, or objectives. If no state departmentor agency, or political subdivision, wants the properties, thedepartment may sell them, with the proceeds deposited in theindustrial rail service fund established by IC 8-3-1.7-2. A publichearing is required prior to the transfer or sale of any rail propertiesby the department.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.59; P.L.95-1987, SEC.2.
IC 8-3-1.5-20.5
Commuter rail service fund
Sec. 20.5. (a) A special fund to be known as the "commuter railservice fund" is established. Any amount earned on money depositedin the fund is part of the fund, and the money in the fund at the endof any fiscal year does not revert to any other fund. However, if themoney in the fund at the end of any fiscal year exceeds the totalamount deposited in the fund during that fiscal year and theimmediately preceding fiscal year, the amount of the excess shall betransferred to the state general fund.
(b) The money in the commuter rail service fund is appropriated
for distribution to commuter transportation districts. However, beforemoney is distributed to a district under this section, the governormust approve the distribution.
(c) A district that receives money under this section may use themoney only for the maintenance, improvement, and operation ofcommuter rail service.
As added by Acts 1979, P.L.50, SEC.2.
IC 8-3-1.5-20.6
Electric rail service fund
Sec. 20.6. (a) A special fund to be known as the electric railservice fund is established. The department shall administer the fund.
(b) Any amount earned on money in the fund is a part of the fundand any money remaining in the fund at the end of a fiscal year doesnot revert to any other fund.
(c) On or before January 31 and July 31 of every calendar year allamounts that are held in the electric rail service fund are to bedistributed to those commuter transportation districts that qualify fora distribution under subsection (d).
(d) The only commuter transportation districts that may receivedistributions under this section are those that have substantially allof their commuter rail transportation performed by electricallypowered railroads.
(e) Commuter transportation districts that qualify for distributionsunder this section shall receive equal shares of each distributionmade from the electric rail service fund.
(f) To make distributions to those commuter transportationdistricts that qualify for the distributions under subsection (d), theauditor of state shall issue warrants drawn on the electric rail servicefund. The treasurer of state shall pay those warrants.
As added by Acts 1981, P.L.67, SEC.4.
IC 8-3-1.5-21
Chicago, South Shore, and South Bend Railway capitalimprovements fund
Sec. 21. There is created a Chicago, South Shore, and South BendRailway capital improvements fund. There is hereby appropriated thesum of three million six hundred thousand dollars ($3,600,000) tosaid fund. The fund shall be disbursed by the governor of the state ofIndiana to any regional transportation authority, or commutertransportation district which has among its purposes themaintenance, operation and improvement of passenger service overthe Chicago, South Shore, and South Bend Railway railroad and anyextension thereof. As to capital improvements, the fund herebyappropriated shall only be expended at such time as the governor ofthe state of Indiana finds that the state of Illinois or anyinstrumentality thereof has appropriated and is ready to expend forChicago, South Shore, and South Bend Railway passenger serviceimprovement and development the sum of not less than one milliondollars ($1,000,000), and the Indiana counties, through which the
line runs, or instrumentalities thereof, have appropriated and areready to expend for Chicago, South Shore, and South Bend Railwaypassenger service maintenance and improvement such sums as hemay judge to be said counties' fair share of passenger servicemaintenance and improvement costs. Said costs to said counties maynot exceed three million six hundred thousand dollars ($3,600,000)in the aggregate. Up to one million dollars ($1,000,000) of said fundmay be expended at the discretion of the governor for the operationof said railroad.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1977,P.L.107, SEC.1; Acts 1978, P.L.57, SEC.3; Acts 1980, P.L.74,SEC.60; P.L.95-1987, SEC.3; P.L.2-1995, SEC.41.
IC 8-3-1.5-22
Repealed
(Repealed by P.L.95-1987, SEC.6.)
IC 8-3-1.5-23
Rules and regulations
Sec. 23. The department shall, subject to IC 8-9.5-2-6(7)(repealed), promulgate rules and regulations consistent with and forthe purpose of adequately implementing the foregoing sections ofthis chapter.
(Formerly: Acts 1975, P.L.79, SEC.1.) As amended by Acts 1980,P.L.74, SEC.62; P.L.1-2009, SEC.68.