IC 8-3-1.7
    Chapter 1.7. Industrial Rail Service Fund

IC 8-3-1.7-1
"Railroad" defined
    Sec. 1. Except as provided in section 2(a)(6) of this chapter, forpurposes of this chapter, the term "railroad" does not include a ClassI or a Class II railroad as established by the Interstate CommerceCommission, or wholly owned subsidiaries of those railroads. Arailroad or railroad company includes a port authority that exercisesits right to operate as a railroad under IC 8-10-5-8.1.
As added by Acts 1982, P.L.51, SEC.2. Amended by P.L.87-1997,SEC.1.

IC 8-3-1.7-2
Creation of fund; use
    Sec. 2. (a) There is created a fund known as the industrial railservice fund. The fund shall consist of money distributed to the fundby IC 6-2.5-10-1 and IC 8-3-1.5-20. Amounts held in the fund mayonly be used to do the following:
        (1) Provide loans to railroads that will be used to purchase orrehabilitate real or personal property that will be used by therailroad in providing railroad transportation services.
        (2) Pay operating expenses of the Indiana department oftransportation, subject to appropriation by the general assembly.
        (3) Provide fifty thousand dollars ($50,000) annually to theIndiana department of transportation for rail planning activities.Money distributed under this subdivision does not revert backto the state general fund at the end of a state fiscal year.
        (4) Provide money for the high speed rail development fundunder IC 8-23-25.
        (5) Provide grants to a railroad owned or operated by a portauthority established under IC 8-10-5.
        (6) Make grants to a Class II or a Class III railroad for therehabilitation of railroad infrastructure or railroad construction.
    (b) A grant made under subsection (a)(5) may not exceed twentypercent (20%) of the gross sales and use tax receipts deposited in thefund under IC 6-2.5-10-1 during the fiscal year preceding the fiscalyear in which the grant is made.
    (c) A grant program under subsection (a)(6) must:
        (1) provide a grant to a recipient of not more than seventy-fivepercent (75%) of the cost of the project; and
        (2) require a grant recipient to pay for not more thantwenty-five percent (25%) of the cost of a project.
As added by Acts 1982, P.L.51, SEC.2. Amended by P.L.96-1985,SEC.1; P.L.95-1987, SEC.4; P.L.84-1988, SEC.2; P.L.18-1990,SEC.37; P.L.83-1991, SEC.1; P.L.100-1993, SEC.1; P.L.87-1997,SEC.2; P.L.121-2001, SEC.1.

IC 8-3-1.7-3 Control of fund; responsibility for administration
    Sec. 3. The administrative control of the industrial rail servicefund and the responsibility for the administration of this chapter arevested in the Indiana department of transportation.
As added by Acts 1982, P.L.51, SEC.2. Amended by P.L.84-1988,SEC.3; P.L.18-1990, SEC.38.

IC 8-3-1.7-4
Application; approval; criteria; service of loan
    Sec. 4. Any railroad may apply for a loan from the industrial railservice fund for the purpose of providing railroad transportationservice in Indiana. The application shall be submitted to the Indianadepartment of transportation. The department shall make the finaldecision as to whether or not to approve an application. Indetermining if a loan should be made to a railroad, the departmentshall consider the following criteria:
        (1) The importance of the railroad transportation services thatthe loan would affect, in the broad perspective of Indiana'soverall transportation network.
        (2) The impact of a decision to not provide a loan on economicactivity and employment in Indiana.
        (3) The long term viability of the proposed project asdemonstrated by the following:
            (A) The long term prospect for the affected industries.
            (B) The soundness of the proposed business plan includingan analysis of the economic impact of the proposed feestructure on affected rail users.
            (C) The management of the proposed rail line.
            (D) The active involvement of affected rail users in thedevelopment of the proposed business plan.
Once an application is approved, the auditor of state shall service theloan.
As added by Acts 1982, P.L.51, SEC.2. Amended by P.L.84-1988,SEC.4; P.L.18-1990, SEC.39.

IC 8-3-1.7-5
Terms and interest rates for loans
    Sec. 5. The Indiana department of transportation shall set theterms and interest rates for loans made from the industrial rail servicefund.
As added by Acts 1982, P.L.51, SEC.2. Amended by P.L.84-1988,SEC.5; P.L.18-1990, SEC.40.

IC 8-3-1.7-6
Redeposit of repayments; investments by department oftransportation
    Sec. 6. (a) Money held in the industrial rail service fund does notrevert to the general fund at the end of a state fiscal year. Moneyloaned from the fund shall, when repaid, be redeposited in theindustrial rail service fund.    (b) The Indiana department of transportation may invest moneyin the industrial rail service fund in the manner provided by law forinvesting money in the state general fund.
As added by Acts 1982, P.L.51, SEC.2. Amended by P.L.84-1988,SEC.6; P.L.18-1990, SEC.41.