(a) The municipal legislative body may furnish the urban mass transportation system with the financial assistance necessary to enable the system to provide adequate service within the municipality, if the legislative body finds:

1. (1) that the system is unable to render that service or that there is imminent danger that the system will be unable to render that service; and

2. (2) that the system is:

   1. (A) necessary to relieve traffic congestion in the municipality;
   2. (B) necessary for the proper use of the factories, stores, warehouses, offices, schools, recreational facilities, and other places where members of the general public congregate;
   3. (C) necessary to expand the economic and social opportunities available to residents of the municipality, especially those who cannot freely move about without the services of the system;
   4. (D) a substantial factor in maintaining real property values in the municipality; or
   5. (E) a substantial factor in providing public housing, redevelopment of blighted areas, and publicly owned offstreet parking facilities.

(b) The municipal legislative body may furnish assistance under this section by:

1. (1) making grants to the system;
2. (2) purchasing buses or real property from the system or from any other source for lease to the system; or

3. (3) making both grants and purchases.

   [Pre-Local Government Recodification Citations: 19-5-2-2 part; 19-5-2-5.]

   As added by Acts 1981, P.L.309, SEC.77.