CHAPTER 15. COMMUTER TRANSPORTATION DISTRICTS
IC 8-5-15
Chapter 15. Commuter Transportation Districts
IC 8-5-15-1
Definitions
Sec. 1. As used in this chapter:
"Board" means the board of trustees of the commutertransportation district.
"Commuter transportation system" means any rail common carrierof passengers for hire, the line, route, road, or right-of-way of whichcrosses one (1) or more county boundaries and one (1) or moreboundaries of the state and serves residents in more than one (1)county. This system is limited to commuter passenger railroads.
"Cost" as applied to a railroad or railroad project includes:
(1) the cost of construction;
(2) the cost of acquisition of personal property, capital stock,land, rights-of-way, property rights, easements, and interests;
(3) the cost of demolishing or removing any buildings orstructures on land so acquired, including the cost of acquiringany lands to which such buildings or structures may be moved;
(4) the cost of relocating public roads and land, or of easements;
(5) the cost of all machinery and equipment, financing charges,interest before and during construction and for not exceedingtwo (2) years after the estimated date of completion ofconstruction;
(6) the cost of engineering and legal expenses, plans,specifications, surveys, estimates of cost, traffic, and revenues,other expenses necessary or incident to determining thefeasibility or practicability of constructing or acquiring anysuch project;
(7) administrative expense; and
(8) such other expenses as may be necessary or incident to theconstruction or acquisition, of the project, the financing of theconstruction or acquisition, and the placing of the project inoperation.
"District" means a commuter transportation district establishedunder this chapter.
"Passenger" means a frequent user of the commuter transportationsystem who can demonstrate an interest and familiarity with thecommuter transportation system.
"Project" or "railroad project" includes any facilities, adjuncts,and appurtenances necessary to operate a railroad, such as lines,routes, roads, rights-of-way, easements, licenses, permits, tangiblepersonal property, and real property. It also includes all or a majorityof the outstanding capital stock of a corporation that operates arailroad.
"Revenues" means all fees, tolls, rentals, gifts, grants, money, andall other funds coming into the possession or under the control of theboard by virtue of this chapter, but does not include real property orpersonal property other than money, nor the proceeds from the sale
of bonds issued under this chapter.
As added by Acts 1980, P.L.8, SEC.68. Amended by P.L.64-1984,SEC.1; P.L.3-1989, SEC.63; P.L.295-2001, SEC.1.
IC 8-5-15-2
Establishment; county membership; name; membership limitation
Sec. 2. (a) A county served by a system of commutertransportation and through which the line, road, route, orright-of-way of the system passes is a member, subject to subsection(b), of a commuter transportation district. The district is created andshall be composed solely of counties which are served by the systemand through which the system passes.
(b) A county is a member of a district if that county's board ofcounty commissioners adopted an ordinance authorizing the county'smembership in the district under this chapter before January 1, 1987.
(c) A district shall be a distinct municipal corporation and shallbear a name including the words "commuter transportation district".Such municipal corporation shall include all the territory of thecounties that are members of the district and shall be coterminouswith such counties.
(d) Membership of the district is limited to counties which aredirectly served by a commuter transportation system which providesdaily interstate commuter service and which owns and operates overtrackage within the boundaries of the county.
As added by Acts 1980, P.L.8, SEC.68. Amended by Acts 1981,P.L.67, SEC.5; P.L.385-1987(ss), SEC.2.
IC 8-5-15-3
Board of trustees; membership; term
Sec. 3. (a) The district shall be supervised and managed by aboard of trustees, which consists of the following:
(1) Four (4) members, one (1) from each county that is amember of the district, appointed by that county's board ofcounty commissioners. In the case of a member appointed orreappointed under this subdivision after December 31, 2009, themember must be a member of the board of countycommissioners of the county that the member represents.
(2) Four (4) members, one (1) from each county that is amember of the district, each of whom is the president of thatcounty's county council or another council member designatedby the president as a board member.
(3) After June 30, 2010, one (1) member representing the restof the state, appointed by the governor.
(4) After June 30, 2010, one (1) passenger member appointedby the governor. The member appointed under this subdivisionmust be selected from passengers who have submitted a letterof interest to the governor. To be considered for this position,a passenger must submit a letter of interest to the governorduring a two (2) week period that begins, in 2010, on May 2,2010, and, in any year after 2010 in which the term of a member
appointed under this subsection expires, sixty (60) days beforethe expiration of the term of the member appointed under thissubdivision. A member of the board serving under thissubdivision is not required to submit a letter of interest to beeligible for appointment to a successive term.
(5) After June 30, 2010, one (1) member who is an employee ofthe district, appointed by the governor from a list of namessubmitted by the labor unions representing the employees of thedistrict. Each labor union representing employees of the districtmay submit one (1) name to be included on the list of namesunder this subdivision.
(b) A member shall serve for a term of two (2) years from thebeginning of the term for which the member was appointed and untila successor has qualified for the office. Each member shall serve atthe pleasure of the appointing authority but is eligible forreappointment for successive terms.
(c) The members of the board shall elect for a one (1) year term:
(1) one (1) member as chairman;
(2) one (1) member to serve as vice chairman;
(3) one (1) member to serve as secretary; and
(4) one (1) member to serve as treasurer.
(d) Not later than:
(1) April 1, 2010; and
(2) in any year after 2010 in which the term of a memberappointed under subsection (a)(4) expires, ninety (90) daysbefore the expiration of the term of the board member appointedunder subsection (a)(4);
the district shall post in each commuter station in the district a noticeof the opening on the board of trustees. The notice must announcethe opening for a passenger member on the board of trustees andprovide information on submitting a letter of interest. The noticemust state the period in which the passenger must submit a letter ofinterest. The notice must remain posted until, in 2010, May 15, 2010,and, in any subsequent year in which the term of a member appointedunder subsection (a)(4) expires, the expiration of the two (2) weekperiod described in subsection (a)(4).
(e) A member appointed under subsection (a)(4) or (a)(5) maynot:
(1) vote on issues involving perceived or actual financialconflicts of interest, including personnel issues, collectivebargaining, and assessment or levy of taxes; or
(2) participate in an executive session of the board underIC 5-14-1.5-6.1, on issues regarding:
(A) the discussion of strategy for:
(i) collective bargaining; or
(ii) the initiation of litigation or litigation that is eitherpending or has been threatened specifically in writing;
as described in IC 5-14-1.5-6.1(b)(2); or
(B) the discussion of job performance evaluation ofindividual employees, except for a discussion of the salary,
compensation, or benefits of employees during a budgetprocess, as described in IC 5-14-1.5-6.1(b)(9).
(f) The members appointed under subsection (a)(4) and (a)(5)must reside in different counties.
As added by Acts 1980, P.L.8, SEC.68. Amended by P.L.12-1983,SEC.18; P.L.64-1984, SEC.2; P.L.385-1987(ss), SEC.3;P.L.295-2001, SEC.2; P.L.182-2009(ss), SEC.263; P.L.48-2010,SEC.1.
IC 8-5-15-4
Board; powers; meetings; compensation
Sec. 4. (a) The board may exercise the executive and legislativepower of the district as provided by this chapter.
(b) The board shall hold regular meetings, to be held not less thanfour (4) times a year, and shall keep its meetings open to the public.
(c) The members of the board are entitled to reimbursement fortraveling expenses and other expenses incurred in connection withthe members' duties, subject to state travel policies and proceduresestablished by the state budget agency, to be paid by the district.Members are also entitled to a salary per diem provided byIC 4-10-11-2.1(b) while performing their duties.
(d) A majority of the members appointed to the board constitutesa quorum for a meeting. The affirmative votes of a majority of themembers are necessary for any action to be taken by the board.
As added by Acts 1980, P.L.8, SEC.68. Amended byP.L.385-1987(ss), SEC.4.
IC 8-5-15-5
Powers of board; dissolution of district
Sec. 5. (a) The board has all powers reasonably necessary to carryout the purpose of this chapter including the following powers:
(1) To receive federal, state, county, and municipal funds, orprivate contributions and disburse them for the purpose ofaiding commuter transportation systems serving the district.
(2) To monitor and evaluate the use of funds granted ordistributed by the district.
(3) To apply for federal, state, municipal, or county funds forthe purpose of rendering assistance to commuter transportationsystems.
(4) To coordinate its plans and activities with:
(A) any public transportation authority serving one (1) ormore counties that are members of the district;
(B) the Indiana department of transportation;
(C) regional planning commissions serving any portion ofthe district;
(D) units of county and municipal government included inthe district; and
(E) any regional transportation authority, transit authority, orlike governmental unit in another state if the commutertransportation system crosses the boundary of the state or
serves another.
(5) To purchase, lease, or lease with option to purchase capitalequipment in aid of any system of commuter transportationoperating in the district, and lease the equipment to the systemunder conditions and for a term to be determined by the board.
(6) As a municipal corporation, to sue and be sued.
(7) To conduct public hearings to accomplish the purpose ofthis chapter.
(8) To seek and accept the assistance of any public or publiclyfunded agency in carrying out its functions and duties.
(9) To enter into agreements with either private or publicagencies for any purpose required to accomplish the intent ofthis chapter. The board may enter into a trust indenture or anyother agreement with the board for depositories in order toobtain a loan or a loan guarantee under IC 5-13-12-11.
(10) To set levels of service and rates notwithstanding IC 8-3-1,for transportation of passengers subject to section 7 of thischapter.
(11) To expend funds granted to the district from any source forthe purpose of paying reasonable administrative expenses.
(12) To purchase, acquire, lease, or lease with option topurchase all or any part of the assets of a railroad that isproviding commuter transportation services within the districtand to purchase or acquire all or any part of the issued andoutstanding stock of a railroad that is providing commutertransportation services within the district.
(13) To own all or any part of the capital stock or assets of arailroad that is providing commuter transportation serviceswithin the district, and to operate either directly, bymanagement contract, or by lease any such railroad.
(14) To issue revenue bonds of the district payable solely fromrevenues for the purpose of paying all or any part of the cost ofacquiring the capital stock of a railroad company, all or any partof the assets of a railroad, or any property, real or personal, forthe purposes of this chapter.
(15) To acquire, lease, construct, maintain, repair, police, andoperate a railroad and to establish rules for the use of therailroad and other properties subject to the jurisdiction andcontrol of the board.
(16) To acquire and dispose of real and personal property in theexercise of its powers and the performance of its duties underthis chapter.
(17) To lease to others for development or operation all or anypart of a railroad on such terms and conditions as the boardconsiders advisable.
(18) To make and enter into all contracts, undertakings, andagreements necessary or incidental to the performance of itsduties and the execution of its powers under this chapter.
(19) To employ, subject to sections 18 and 19 of this chapter, anexecutive director or manager, consulting engineers,
superintendents, and such other engineers, construction andaccounting experts, attorneys, and other employees and agentsas may be necessary in its judgment, and to fix theircompensation.
(20) To negotiate and enter into agreements for railroadtrackage rights regardless of the location of the track.
(21) To do all other acts necessary or reasonably incident tocarrying out the purpose of this chapter.
(b) Notwithstanding the powers granted to the board in subsection(a), the district does not have the power to levy taxes.
(c) In the event the board of trustees determines that the commutertransportation system or the railroad owned by the district cannotcontinue to provide adequate transportation service, or the district isterminated, the board may, subject to the conditions of any state orfederal grant used to purchase equipment or property, dispose of anyproperties of the district.
(d) In the event the district is dissolved, ninety percent (90%) ofthe proceeds shall be paid to the state and ten percent (10%) to thecounties in proportion to their contributions.
(e) In the exercise of any of the powers granted to the board insubsection (a), the board is not subject to any other laws related tocommuter transportation systems or railroads.
As added by Acts 1980, P.L.8, SEC.68. Amended by Acts 1981,P.L.67, SEC.6; P.L.12-1983, SEC.19; P.L.64-1984, SEC.3;P.L.48-1986, SEC.2; P.L.19-1987, SEC.22; P.L.385-1987(ss),SEC.5; P.L.18-1990, SEC.63.
IC 8-5-15-5.4
Bonds
Sec. 5.4. (a) The board may provide by resolution, at one (1) timeor from time to time, for the issuance of revenue bonds of the districtfor the purpose of paying all or any part of the cost of a railroadproject. The principal of and the interest on the bonds are payablesolely from the revenues specifically pledged to the payment thereof.The bonds of each issue shall be dated, bear interest at any rate, andmature at a time or times not exceeding forty (40) years from the datethereof, as may be determined by the board, and may be maderedeemable before maturity, at the option of the board, at such priceor prices and under such terms and conditions as may be fixed by theboard in the authorizing resolution.
(b) The board shall determine the form of the bonds, includingany interest coupons to be attached to the bonds, and shall fix thedenomination or denominations of the bonds and the place or placesof payment of principal and interest.
(c) The bonds shall be issued in the name of the district andexecuted by the manual or facsimile signature of the president of theboard. The manual or facsimile seal of the district shall be affixed orimprinted on the bonds and attested by the manual or facsimilesignature of the secretary of the district. However, one (1) of thesignatures must be manual, unless the bonds are authenticated by the
manual signature of an authorized representative of a trustee for thebondholders. Any coupons attached to the bonds must bear thefacsimile signature of the treasurer of the board. In case any officerwhose signature or a facsimile of whose signature appears on anybonds or coupons ceases to be an officer before the delivery of thebonds, the signature or facsimile shall nevertheless be consideredvalid and sufficient for all purposes the same as if he had remainedin office until the delivery. The bonds must contain on their face astatement to the effect that the bonds, as to both principal andinterest, are payable solely from the revenues pledged for theirpayment.
(d) All bonds issued under this chapter have all the qualities andincidents of negotiable instruments under the negotiable instrumentslaw of Indiana.
(e) The bonds may be issued in coupon, registered, or book entryform, or any combination of these, as the board may determine, andprovision may be made for the registration of any coupon bonds asto principal alone and also as to both principal and interest, and forthe reconversion into coupon bonds of any bonds registered as toboth principal and interest.
(f) The board may sell the bonds in such manner and for suchprice as it may determine to be in the best interest of the district,either at public sale under IC 5-1-11 or at private sale.
(g) The board may issue bonds under this chapter only afterobtaining approval of the issuance by the Indiana department oftransportation. Before giving approval, the Indiana department oftransportation shall give due consideration to any contract terms andconditions that impinge on the continuation of revenues for the termof any bond.
(h) This chapter constitutes full and complete authority for theissuance of bonds. No law, procedure or proceedings, publications,notices, consents, approvals, orders, acts, or things by the board orany other officer, department, agency or instrumentality of the state,county, or any municipality shall be required to issue such bondsexcept as may be prescribed in this chapter.
(i) Bonds issued under the provisions of this section shallconstitute legal investments for any private trust funds, and the fundsof any banks, trust companies, insurance companies, building andloan associations, credit unions, banks of discount and deposit,savings banks, loans and trust and safe deposit companies, rural loanand savings associations, guaranty loan and savings associations,mortgage guaranty companies, small loan companies, industrial loanand investment companies, and any other financial institutionsorganized under the laws of the state of Indiana.
(j) Bonds may not be sold to purchase or lease assets or purchasecapital stock of a railroad unless the board has a written undertakingfrom the seller or lessor that the seller or lessor will take no directaction calculated to cause the reduction of levels of freight servicebeing rendered or revenues being generated on any such railroad fora period of time not less than the term of the bonds.As added by Acts 1981, P.L.67, SEC.7. Amended by P.L.64-1984,SEC.4; P.L.18-1990, SEC.64; P.L.42-1993, SEC.6.
IC 8-5-15-5.5
Bonds; security; pledges or assignments; rights and remedies ofbondholders; depository; expenses
Sec. 5.5. (a) In the discretion of the board, any bonds issued underthe provisions of this chapter may be secured by a trust agreement byand between the board and a corporate trustee, which may be anytrust company or bank having the powers of a trust company withinthis state. Any resolution adopted by the board providing for theissuance of revenue bonds and any trust agreement pursuant to whichthe bonds are issued may pledge or assign, subject only to valid priorpledges, all or any portion of the revenues received or to be receivedby the board, except such part as may be necessary to pay the cost ofthe board's administrative expenses, operation, maintenance, andrepair of the railroad, and to provide reserves required by any bondresolution adopted or trust agreement executed by the board.
(b) In authorizing the issuance of bonds, the board may limit theamount of bonds that may be issued as a first lien against theamounts pledged to the payment of those bonds, or the board mayauthorize the issuance from time to time thereafter of additionalbonds secured by the same lien. Additional bonds shall be issued onsuch terms and conditions as may be provided in the bond resolutionor resolutions adopted by the board and in the trust agreement or anyagreement supplemental to the trust agreement. Additional bondsmay be secured equally and ratably without preference, priority, ordistinction with the original issue of bonds, or may be made juniorto the original issue of bonds.
(c) Any pledge or assignment made by the board under thissection is valid and binding from the time that the pledge orassignment is made, and the amounts so pledged and thereafterreceived by the board are immediately subject to the lien of thepledge or assignment without physical delivery of those amounts orfurther act. The lien of the pledge or assignment is valid and bindingagainst all parties having claims of any kind in tort, contract, orotherwise against the board or district irrespective of whether theseparties have notice of the lien. Neither the resolution nor any trustagreement by which a pledge is created or an assignment made needbe filed or recorded in order to perfect the resulting lien against thirdparties. However, a copy of the pledge or assignment shall be filedin the records of the board.
(d) Any trust agreement or resolution providing for the issuanceof bonds may contain such provisions for protecting and enforcingthe rights and remedies of the bondholders as may be reasonable andproper and not in violation of law. The provisions may include, butare not limited to, covenants setting forth the duties of the board inrelation to:
(1) the acquisition of property;
(2) the custody, safeguarding, investment, and application of all
moneys received or to be received by the board of trustees;
(3) the establishment of funds, reserves, and accounts;
(4) the construction, improvement, maintenance, repair,operation, and insurance of the railroad project in connectionwith which the bonds shall have been authorized; and
(5) the rates of fees, tolls, rentals, or other charges to becollected for the use of the railroad project.
(e) It is lawful for any bank or trust company incorporated underthe laws of the state, and any national banking association which mayact as depository of the proceeds of bonds or other funds of theboard, to furnish such indemnifying bonds or to pledge suchsecurities as may be required by the board.
(f) Any trust agreement entered into under this section may setforth the rights and remedies of the bondholders and of the trustee,and may restrict the individual right of action by bondholders as iscustomary in trust agreements or trust indentures securing bonds ordebentures of private corporations. In addition, such a trustagreement may contain such other provisions as the board may deemreasonable and proper for the security of the bondholders.
(g) All expenses incurred in carrying out the provisions of a trustagreement entered into under this section may be paid from theamounts distributed to the district from the electric rail service fund,from the bond proceeds, or from revenues.
As added by Acts 1981, P.L.67, SEC.8. Amended by P.L.64-1984,SEC.5.
IC 8-5-15-5.6
Covenants with bond purchasers; distributions from electric railservice fund
Sec. 5.6. (a) The general assembly covenants with the purchasersof any bonds issued pursuant to the authority of this chapter that thetaxes providing the amounts to be distributed to the district from theelectric rail service fund (IC 8-3-1.5-20.6) and the commuter railservice fund (IC 8-3-1.5-20.5), which amounts are pledged to thepayment of those bonds, shall not be repealed, amended, or alteredin any manner that would adversely affect the levy and collection ofthose taxes, or change the method of fixing the rates of those taxes,so long as the principal of, or interest on, any such bonds is unpaid.
(b) The board, on behalf of the state and the district, is herebyauthorized to make a similar pledge or covenant in any agreementwith the purchasers of any bonds issued pursuant to the authority ofthis chapter.
(c) For purposes of this section, the principal of or interest onbonds or notes shall be considered paid if provision has been madefor their payment in such a manner that the bonds or notes are notconsidered to be outstanding under the provisions of the resolutionor trust agreement pursuant to which the bonds or notes are issued.
As added by Acts 1981, P.L.67, SEC.9. Amended byP.L.385-1987(ss), SEC.6.
IC 8-5-15-5.7
Commuter transportation system bond fund; reserve; surplus
Sec. 5.7. (a) If there are bonds outstanding issued pursuant tosection 5.4 of this chapter, the treasurer of the board shall deposit ina separate and distinct fund called the commuter transportationsystem bond fund all amounts distributed to the district from thecommuter rail service fund (IC 8-3-1.5-20.5) and the electric railservice fund established by IC 8-3-1.5-20.6.
(b) "Bond fund requirement" means the total of the following:
(1) the principal of and interest on all outstanding bonds issuedpursuant to this chapter becoming due in the next twelve (12)months; plus
(2) as a reserve for such payment the amount provided in theresolutions or trust agreements pursuant to which such bondsare issued which reserve shall not in any event exceed anamount equal to two (2) times the maximum amount ofprincipal and interest coming due of such bonds in anysubsequent year by reason of stated maturities, scheduledmandatory prepayments or by operation of any mandatoryprepayments or by operation of any mandatory sinking fund(assuming for the purpose of the foregoing that all such bondswhich are subject to mandatory redemption or prepayment areredeemed or prepaid in accordance with the requirements ofsuch mandatory redemption or prepayment and furtherassuming that such bonds are otherwise redeemed or prepaidprior to maturity).
(c) Amounts in the commuter transportation bond fund up to thebond fund requirement shall be applied to the payment of principalof such bonds and the interest thereon and to no other purposewhatsoever. Any amount in the bond fund which exceeds the bondfund requirement may be expended by the board for any purposeauthorized by this chapter.
(d) The reserve shall be held as a separate subaccount within suchbond fund. To the extent authorized and directed in any resolution ofthe board or in any trust agreement providing for the issuance ofbonds pursuant to this chapter, proceeds of such bonds may bedeposited in such reserve subaccount. However, the amount sodeposited when added to any amount then in such subaccount shallnot exceed the maximum amount required to be in such subaccountas above provided.
As added by Acts 1981, P.L.67, SEC.10. Amended byP.L.385-1987(ss), SEC.7.
IC 8-5-15-6
Conditions on grant
Sec. 6. Any commuter transportation system receiving assistancefrom a district shall, as a condition of the grant:
(1) submit its operating budget for passenger service renderedto the district for public hearings annually at least ninety (90)days before the beginning of the system's fiscal year; (2) permit the Indiana department of transportation (IC 8-23-2)to audit the financial books and records of the system as thedepartment would audit any intrastate railroad; and
(3) assume the responsibility for operation and maintenance ofthe equipment in accordance with a lease agreement executedbetween the system and district.
As added by Acts 1980, P.L.8, SEC.68. Amended byP.L.385-1987(ss), SEC.8; P.L.18-1990, SEC.65.
IC 8-5-15-7
Conflicts with federal law or regulations; levels of services
Sec. 7. (a) Any provision of this chapter in conflict with theInterstate Commerce Act of the United States or any other federallaw or regulations governing transportation by common carrier isvoid, but all other provisions of this chapter shall be given effect ifpossible, without the provision or provisions so voided.
(b) The board may eliminate service or reduce levels of servicefor the transportation of passengers or property only after obtainingapproval by the Indiana department of transportation.
As added by Acts 1980, P.L.8, SEC.68. Amended by P.L.64-1984,SEC.6; P.L.18-1990, SEC.66.
IC 8-5-15-8
Grant of funds
Sec. 8. (a) The board of commissioners of any county mayauthorize the grant of funds to any commuter transportation systemserving or passing through the county for the purchase of equipmentor other capital improvements. The grants shall be made to a districtfor distribution to the commuter transportation systems or forpurchases of equipment or capital improvements to be used on or bythe systems in connection with its public transportation operation.
(b) In the event the county is not a member of a district, a grantauthorized by this section may be distributed directly to a commutertransportation system.
As added by Acts 1980, P.L.8, SEC.68.
IC 8-5-15-9
Repealed
(Repealed by P.L.11-1993, SEC.9.)
IC 8-5-15-10
Financial records; inspection; publicity; exclusion of freight servicecosts
Sec. 10. (a) Any commuter transportation system which receivesaid from the district under this chapter must make its financialrecords available for inspection during normal working hours by adesignated representative of the district.
(b) The district may provide any information to the general publicwhich it develops from its review of the system's financial recordswhich relates to the qualification for financial aid by that system. (c) The district shall develop a formula which fairly allocates theadministrative and operational costs incurred by the system betweenits freight service and passenger service.
(d) No state or local funds may be expended to reimburse thesystem for costs allocated to freight service.
As added by Acts 1981, P.L.67, SEC.12.
IC 8-5-15-11
Proceeds of bonds; issuance of interim receipts or temporarybonds; mutilated, destroyed, or lost bonds
Sec. 11. (a) The proceeds of the bonds of each issue:
(1) shall be used solely for the payment of the cost of therailroad project for which the bonds have been issued; and
(2) shall be disbursed in such manner and under suchrestrictions, if any, as the board may provide in the resolutionauthorizing the issuance of the bonds or in the trust agreementsecuring the same.
(b) If the proceeds of the bonds of any issue, by error of estimatesor otherwise, are less than the cost of the railroad project for whichthey have been issued, additional bonds may in like manner be issuedto provide the amount of the deficit, and, unless otherwise providedin the resolution authorizing the issuance of the bonds or in the trustagreement securing the bonds, the additional bonds shall beconsidered to be of the same issue and entitled to payment from thatsame fund without preference or priority of the bonds first issued.
(c) If the proceeds of the bonds of any issue exceed the cost of therailroad project for which they have been issued, the surplus shall bedeposited to the credit of the sinking fund for those bonds.
(d) Before the preparation of definitive bonds, the board may,under like restrictions, issue interim receipts or temporary bonds,with or without coupons, exchangeable for definitive bonds when thebonds have been executed and are available for delivery. The boardmay also provide for the replacement of any bonds that are mutilated,destroyed, or lost.
As added by P.L.64-1984, SEC.7.
IC 8-5-15-12
Revenue refunding bonds
Sec. 12. (a) The board may provide by resolution for the issuanceof revenue refunding bonds of the district or revenue advancerefunding bonds of the district, payable solely from revenues, for thepurpose of refunding or advance refunding any bonds thenoutstanding that have been issued under this chapter, including thepayment of any redemption premium thereon and any interestaccrued or to accrue to the date of redemption of such bonds, and, ifconsidered advisable by the board, for the additional purpose ofconstructing improvements, extensions, or enlargements of therailroad in connection with which the bonds to be refunded havebeen issued.
(b) The issuance of the bonds, the maturities and other details of
the bonds, the rights of the bondholders, and the rights, duties, andobligations of the board in respect to the bonds, shall be governed bythis chapter insofar as it may be applicable.
As added by P.L.64-1984, SEC.8.
IC 8-5-15-13
Money received under this chapter; disposition; depositories;trustee; guaranteed investment contract
Sec. 13. (a) All money received under this chapter, whether asproceeds from the sale of bonds, from revenues, or otherwise:
(1) shall be considered to be trust funds to be held and appliedsolely as provided in this chapter; and
(2) except as provided in subsection (d), may be invested beforethe time when needed to the extent and in the manner providedby IC 5-13-9, insofar as applicable.
(b) The funds shall be kept in depositories as selected by theboard in the manner provided by law.
(c) The resolution authorizing the issuance of bonds or the trustagreement securing the bonds must provide that any officer to whom,or any bank or trust company to which, the money is entrusted shallact as trustee of the money and shall hold and apply the money forthe purposes of this section, subject to this chapter and theauthorizing resolution or trust agreement.
(d) Proceeds received by the district from the sale of equipmentin a sale and leaseback transaction may be invested in or used topurchase a guaranteed investment contract with an insurancecompany whose long term indebtedness is rated in one (1) of the two(2) highest categories by at least two (2) national rating services. Theguaranteed investment contract may not exceed the term of the leaseand may be assigned to secure performance of the lease.
As added by P.L.64-1984, SEC.9. Amended by P.L.19-1987, SEC.23;P.L.8-1996, SEC.11.
IC 8-5-15-14
Actions by bondholders or trustee; protection and enforcement ofrights; enforcement and compelling performance of duties underchapter
Sec. 14. Any holder of bonds issued under this chapter and thetrustee under any trust agreement, except to the extent the rightsgranted by this chapter may be restricted by the authorizingresolution or trust agreement, may, either at law or in equity, by suit,action, mandamus, or other proceedings:
(1) protect and enforce all rights under Indiana law or grantedunder this chapter or under the trust agreement, or theresolution authorizing the issuance of the bonds; and
(2) enforce and compel the performance of all duties requiredby this chapter or by the trust agreement or resolution to beperformed by the board or by any officer thereof, including thefixing, charging, and collecting of fees, tolls, rentals, or othercharges for the use of the railroad or railroad project.As added by P.L.64-1984, SEC.10.
IC 8-5-15-15
Eminent domain; relocation assistance; properties in public use
Sec. 15. (a) The board may exercise the power of eminent domainfor the purpose of carrying out this chapter and award damages tolandowners for real estate and property rights appropriated and taken.If the board cannot agree with the owners, lessees, or occupants ofany real estate selected by the board for the purpose set forth in thischapter, the board may proceed to procure the condemnation of theproperty under IC 32-24.
(b) Relocation assistance under IC 8-23-17 shall be provided toany person displaced under this section.
(c) If the property over and across which the railroad must beconstructed and must operate is already in use or acquired for use fora public purpose, the public use or acquisition of the property is nota bar to the right of the board to condemn the property for thepurpose of this chapter.
As added by P.L.64-1984, SEC.11. Amended by P.L.18-1990,SEC.67; P.L.2-2002, SEC.42.
IC 8-5-15-16
Exercise of powers under this chapter for benefit of people ofIndiana; tax exemption
Sec. 16. (a) The exercise of the powers granted by this chapter isin all respects for the benefit of the people of Indiana, for theincrease of their commerce and prosperity, and for the improvementof their health and living conditions.
(b) As the operation and maintenance of a railroad project by theboard will constitute the performance of essential governmentalfunctions, the board shall not be required to pay any taxes orassessments upon any railroad project or any property acquired orused by the board under this chapter, or upon the income from it, andthe bonds issued under this chapter, the interest on them, theproceeds received by a holder from the sale of the bonds to the extentof the holder's cost of acquisition, or proceeds received uponredemption before maturity or proceeds received at maturity, and thereceipt of the interest and proceeds are exempt from taxation inIndiana as provided in IC 6-8-5.
As added by P.L.64-1984, SEC.12. Amended by P.L.3-1990, SEC.30.
IC 8-5-15-17
Employees of commuter railroad transportation system; protection
Sec. 17. If the district acquires a commuter railroad transportationsystem and proceeds to operate the system directly, by managementcontract, or by lease under this chapter, the employees of the systemshall 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 rights, privileges, and benefits of the employees underany pension or retirement plan are not affected, and the boardshall assume the duties of the system under the plan.
(3) The board shall act in such a manner as to insure thecontinuing applicability to affected railroad employees of theprovisions of all federal statutes applicable to them prior toApril 1, 1984, and a continuation of their collective bargainingagreements until the provisions of those agreements can berenegotiated by representatives of the board and therepresentatives of those employees duly designated pursuant toterms and provisions of the federal Railway Labor Act (45U.S.C. 151 et seq.).
(4) The employees of the system shall receive protection no lessfavorable than the employee conditions provided In the Matterof the New York Dock (360 I.C.C. 60), and no person with anemployment relation with the commuter transportation systemon April 1, 1984, may be deprived of employment or placed ina worse position by reason of the district's acquisition of acommuter transportation system.
As added by P.L.64-1984, SEC.13.
IC 8-5-15-18
Legal services; attorney general
Sec. 18. (a) Each district shall request the attorney general toperform any legal services required in providing transportationservice within the district. If the attorney general is unable to performthose services, the district may, with the attorney general's approval,employ an attorney.
(b) The attorney general shall, to the extent feasible and uponrequest of a district, perform legal services for the district.
As added by P.L.385-1987(ss), SEC.10.
IC 8-5-15-19
Auditing services
Sec. 19. (a) Each district shall request the state board of accountsto perform any auditing services required under this chapter inproviding transportation service within the district. If the state boardof accounts is not able to perform those services, the district mayemploy an auditor to perform audits for the district.
(b) The state board of accounts shall, to the extent feasible andupon request:
(1) perform auditing services for the district; and
(2) consult with the district in acquiring auditing services.
As added by P.L.385-1987(ss), SEC.11.
IC 8-5-15-20
Agreements between district and system; contents
Sec. 20. Any agreement between the district and the system, theprincipal purpose of which is to provide passenger rail service, mustinclude the following provisions: (1) That the replacement of capital assets employed in theprovision of passenger service will be provided for prudently.
(2) That the methods of conducting and accounting for financialtransactions between parties to agreements will be compatiblewith the fiduciary responsibilities of the district and thepurposes of this chapter and follows generally acceptedaccounting principles.
(3) That the system shall maintain complete and accurate booksand records, permit reasonable access by the district and its dulyauthorized representatives to the books and records of thesystem, and permit the district or its representatives, atreasonable times and subject to reasonable confidentialityrestrictions, to inspect the properties and operations of thesystem.
(4) That the system shall also provide:
(A) system performance information, which will permit anassessment of passenger service in general and service levelsin particular;
(B) information concerning the operation and administrationof the passenger rail service;
(C) a projection of significant operational and administrativechanges scheduled to take place in the enusing fiscal year;
(D) a projection of capital expenditures scheduled to beundertaken by the system in the ensuing fiscal year; and
(E) a list of capital improvements that the system requeststhat the district undertake in the ensuing five (5) years.
(5) That a marketing study shall be undertaken no lessfrequently than every three (3) years. The study may beundertaken jointly by the system and the district. The studymust measure and evaluate passenger attitudes andrequirements concerning service levels, service quality, fares,and opportunities to improve service or to increase ridership.
(6) That the passenger service deficit will not exceed an agreedamount (with an allowance agreed to by the parties for variableexpenses) during the term of the agreement.
As added by P.L.385-1987(ss), SEC.12.
IC 8-5-15-21
Agreements between district and system; property interests;operation
Sec. 21. Any agreement between the district and the system mayinclude a provision that, with respect to assets owned by either party,property interests may be conveyed and responsibilities for operationand maintenance may be assigned to either party, or jointly held andexercised by either party.
As added by P.L.385-1987(ss), SEC.13.
IC 8-5-15-22
Agreements between district and system; service profile
Sec. 22. Any agreement between the district and the system must
include a service profile describing passenger service levels. Theservice profile shall be described with terms and conditions that areobjective and measurable.
As added by P.L.385-1987(ss), SEC.14.
IC 8-5-15-23
Financial or operating agreements; approval
Sec. 23. Any financial or operating agreement between a districtand a system does not take effect until the Indiana department oftransportation approves the agreement.
As added by P.L.385-1987(ss), SEC.15. Amended by P.L.18-1990,SEC.68.
IC 8-5-15-24
Financial responsibility; certification; proof
Sec. 24. (a) Before January 1 of each year, the district shall certifyto the Indiana department of transportation that the district has takenaction to provide financial responsibility against liability of thedistrict under any agreement with a commuter transportation system.
(b) Proof of financial responsibility under this section may beestablished by proof that:
(1) a liability insurance policy is in force; or
(2) a self-insurance program is in effect.
(c) The district shall participate, if feasible, in the programsestablished by the political subdivision risk management commissionunder IC 27-1-29.
As added by P.L.385-1987(ss), SEC.16. Amended by P.L.18-1990,SEC.69.
IC 8-5-15-25
Capital improvement contingency fund
Sec. 25. (a) The capital improvement contingency fund isestablished for the purpose of:
(1) receiving taxes, appropriations, and other revenues;
(2) matching state or federal transportation grants made topermit the acquisition of capital assets;
(3) acquiring capital improvements or assets; or
(4) receiving, holding, and disbursing funds as a fiduciary.
(b) Money in the fund at the end of a fiscal year does not revert tothe state general fund.
As added by P.L.385-1987(ss), SEC.17.
IC 8-5-15-26
Petition to discontinue rail passenger service; acquisition ofproperty
Sec. 26. If a petition is filed by the system under the InterstateCommerce Act to discontinue rail passenger service, the district maytake the necessary action to acquire the system's passenger andfreight properties under sections 5(a)(12) and 5(a)(13) of this chapterand, if necessary, exercise the power of eminent domain under
section 15 of this chapter.
As added by P.L.385-1987(ss), SEC.18.