(a) The governing body of a municipality may transfer to a transit department created by the municipality:
(1) property and employees of a division of the municipality that before the creation of the transit department was responsible for municipal public transportation; and
(2) municipal funds that may be used for mass transit.
(b) The governing body may abolish or change the functions of the municipal division formerly responsible for municipal public transportation.

(c) If a transit department is required to be dissolved under this chapter, the board, on dissolution of the transit department, shall transfer to the municipality the funds, property, and employees that were transferred to the transit department under this section. The governing body of the municipality may then recreate or change the duties of any municipal division abolished or changed as a result of transfers made under this section.