As Introduced 1
122nd General Assembly 4
Regular Session H. B. No. 228 5
1997-1998 6
REPRESENTATIVES CORBIN-ROBERTS-MOTTLEY-JACOBSON-LEWIS 8
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A B I L L
To amend section 306.35 of the Revised Code to 11
authorize regional transit authorities to use the 12
lease and leaseback financing technique to 13
finance their facilities, to remove from the 14
Regional Transit Authority Law a reference to an 15
obsolete provision of the Internal Revenue Code 16
of 1954, and to declare an emergency. 17
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 19
Section 1. That section 306.35 of the Revised Code be 21
amended to read as follows: 22
Sec. 306.35. Upon the creation of a regional transit 31
authority as provided by section 306.32 of the Revised Code, and 32
upon the qualifying of its board of trustees and the election of 33
a president and a vice-president, the authority shall exercise in 34
its own name all the rights, powers, and duties vested in and 35
conferred upon it by sections 306.30 to 306.53 of the Revised 36
Code. Subject to any reservations, limitations, and 37
qualifications that are set forth in those sections, the regional 39
transit authority:
(A) May sue or be sued in its corporate name; 41
(B) May make contracts in the exercise of the rights, 43
powers, and duties conferred upon it; 44
(C) May adopt and at will alter a seal and use such seal 46
by causing it to be impressed, affixed, reproduced, or otherwise 47
used, but failure to affix the seal shall not affect the validity 48
of any instrument; 49
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(D) May adopt, amend, and repeal bylaws for the 51
administration of its affairs and rules for the control of the 52
administration and operation of transit facilities under its 53
jurisdiction, and for the exercise of all of its rights of 54
ownership in those transit facilities; 55
(E) May fix, alter, and collect fares, rates, and rentals 57
and other charges for the use of transit facilities under its 58
jurisdiction to be determined exclusively by it for the purpose 59
of providing for the payment of the expenses of the regional 60
transit authority, the acquisition, construction, improvement, 61
extension, repair, maintenance, and operation of transit 62
facilities under its jurisdiction, the payment of principal and 63
interest on its obligations, and to fulfill the terms of any 64
agreements made with purchasers or holders of any such 65
obligations, or with any person or political subdivision; 66
(F) Shall have jurisdiction, control, possession, and 68
supervision of all property, rights, easements, licenses, moneys, 69
contracts, accounts, liens, books, records, maps, or other 70
property rights and interests conveyed, delivered, transferred, 71
or assigned to it; 72
(G) May acquire, construct, improve, extend, repair, 74
lease, operate, maintain, or manage transit facilities within or 75
without its territorial boundaries, considered necessary to 76
accomplish the purposes of its organization and make charges for 77
the use of transit facilities; 78
(H) May levy and collect taxes as provided in sections 80
306.40 and 306.49 of the Revised Code; 81
(I) May issue bonds secured by its general credit as 83
provided in section 306.40 of the Revised Code; 84
(J) May hold, encumber, control, acquire by donation, by 86
purchase for cash or by installment payments, by lease-purchase 87
agreement, by lease with option to purchase, or by condemnation, 88
and may construct, own, lease as lessee or lessor, use, and sell, 89
real and personal property, or any interest or right in real and 91
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personal property, within or without its territorial boundaries,
for the location or protection of transit facilities and 94
improvements and access to transit facilities and improvements, 95
the relocation of buildings, structures, and improvements 97
situated on lands acquired by the regional transit authority, or 98
for any other necessary purpose, or for obtaining or storing 99
materials to be used in constructing, maintaining, and improving 100
transit facilities under its jurisdiction;
(K) May exercise the power of eminent domain to acquire 102
property or any interest in property, within or without its 104
territorial boundaries, that is necessary or proper for the
construction or efficient operation of any transit facility or 105
access to any transit facility under its jurisdiction in 106
accordance with section 306.36 of the Revised Code; 108
(L) May provide by agreement with any county, including 110
the counties within its territorial boundaries, or any municipal 111
corporation or any combination of counties or municipal 112
corporations for the making of necessary surveys, appraisals, and 114
examinations preliminary to the acquisition or construction of 115
any transit facility and the amount of the expense for the 116
surveys, appraisals, and examinations to be paid by each such 117
county or municipal corporation;
(M) May provide by agreement with any county, including 119
the counties within its territorial boundaries, or any municipal 120
corporation or any combination of those counties or municipal 122
corporations for the acquisition, construction, improvement, 123
extension, maintenance, or operation of any transit facility 124
owned or to be owned and operated by it or owned or to be owned 125
and operated by any such county or municipal corporation and the 126
terms on which it shall be acquired, leased, constructed, 127
maintained, or operated, and the amount of the cost and expense 128
of the acquisition, lease, construction, maintenance, or 129
operation to be paid by each such county or municipal 130
corporation;
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(N) May issue revenue bonds for the purpose of acquiring, 132
replacing, improving, extending, enlarging, or constructing any 133
facility or permanent improvement that it is authorized to 134
acquire, replace, improve, extend, enlarge, or construct, 135
including all costs in connection with and incidental to the 137
acquisition, replacement, improvement, extension, enlargement, or
construction, and their financing, as provided by section 306.37 140
of the Revised Code;
(O) May enter into and supervise franchise agreements for 142
the operation of a transit system; 143
(P) May accept the assignment of and supervise an existing 146
franchise agreement for the operation of a transit system; 147
(Q) May exercise a right to purchase a transit system in 149
accordance with the acquisition terms of an existing franchise 150
agreement; and in connection with the purchase the regional 151
transit authority may issue revenue bonds as provided by section 152
306.37 of the Revised Code or issue bonds secured by its general 153
credit as provided in section 306.40 of the Revised Code; 154
(R) May apply for and accept grants or loans from the 156
United States, the state, or any other public body for the 157
purpose of providing for the development or improvement of 158
transit facilities, mass transportation facilities, equipment, 159
techniques, methods, or services, and grants or loans needed to 160
exercise a right to purchase a transit system pursuant to 161
agreement with the owner of those transit facilities, or for 163
providing lawful financial assistance to existing transit
systems; and may provide any consideration that may be required 165
in order to obtain those grants or loans from the United States, 167
the state, or other public body, either of which grants or loans
may be evidenced by the issuance of revenue bonds as provided by 168
section 306.37 of the Revised Code or general obligation bonds as 169
provided by section 306.40 of the Revised Code; 170
(S) May employ and fix the compensation of consulting 172
engineers, superintendents, managers, and such other engineering, 173
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construction, accounting and financial experts, attorneys, and 174
other employees and agents necessary for the accomplishment of 175
its purposes; 176
(T) May procure insurance against loss to it by reason of 178
damages to its properties resulting from fire, theft, accident, 179
or other casualties or by reason of its liability for any damages 180
to persons or property occurring in the construction or operation 181
of transit facilities under its jurisdiction or the conduct of 182
its activities; 183
(U) May maintain funds that it considers necessary for the 186
efficient performance of its duties;
(V) May direct its agents or employees, when properly 188
identified in writing, after at least five days' written notice, 189
to enter upon lands within or without its territorial boundaries 190
in order to make surveys and examinations preliminary to the 191
location and construction of transit facilities, without 192
liability to it or its agents or employees except for actual 193
damage done; 194
(W) On its own motion, may request the appropriate zoning 197
board, as defined in section 4563.03 of the Revised Code, to 198
establish and enforce zoning regulations pertaining to any 199
transit facility under its jurisdiction in the manner prescribed 200
by sections 4563.01 to 4563.21 of the Revised Code; 201
(X) If it acquires any existing transit system, shall 204
assume all the employer's obligations under any existing labor
contract between the employees and management of the system. If 205
the board acquires, constructs, controls, or operates any such 207
facilities, it shall negotiate arrangements to protect the
interests of employees affected by the acquisition, construction, 209
control, or operation. The arrangements shall include, but are 210
not limited to:
(1) The preservation of rights, privileges, and benefits 212
under existing collective bargaining agreements or otherwise, the 213
preservation of rights and benefits under any existing pension 214
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plans covering prior service, and continued participation in 215
social security in addition to participation in the public 216
employees retirement system as required in Chapter 145. of the 217
Revised Code; 218
(2) The continuation of collective bargaining rights; 220
(3) The protection of individual employees against a 222
worsening of their positions with respect to their employment; 223
(4) Assurances of employment to employees of those transit 225
systems and priority reemployment of employees terminated or laid 226
off; 227
(5) Paid training or retraining programs; 229
(6) Signed written labor agreements. 231
The arrangements may include provisions for the submission 234
of labor disputes to final and binding arbitration. 235
(Y) May provide for and maintain security operations, 237
including a transit police department, subject to section 306.352 238
of the Revised Code. Regional transit authority police officers 239
shall have the power and duty to act as peace officers within 240
transit facilities owned, operated, or leased by the transit 241
authority to protect the transit authority's property and the
person and property of passengers, to preserve the peace, and to 242
enforce all laws of the state and ordinances and regulations of 243
political subdivisions in which the transit authority operates. 244
Regional transit authority police officers also shall have the 245
power and duty to act as peace officers when they render 246
emergency assistance outside their jurisdiction to any other 247
peace officer who is not a regional transit authority police
officer and who has arrest authority under section 2935.03 of the 248
Revised Code. Regional transit authority police officers may 249
render emergency assistance if there is a threat of imminent 250
physical danger to the peace officer, a threat of physical harm 251
to another person, or any other serious emergency situation and 252
if either the peace officer who is assisted requests emergency 254
assistance or it appears that the peace officer who is assisted 255
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is unable to request emergency assistance and the circumstances 256
observed by the regional transit authority police officer 257
reasonably indicate that emergency assistance is appropriate. 258
Before exercising powers of arrest and the other powers and 261
duties of a peace officer, each regional transit authority police 262
officer shall take an oath and give bond to the state in a sum 263
that the board of trustees prescribes for the proper performance 264
of the officer's duties. 265
Persons employed as regional transit authority police 267
officers shall complete training for the position to which they 269
have been appointed as required by the Ohio peace officer
training commission as authorized in section 109.77 of the 270
Revised Code, or be otherwise qualified. The cost of the 272
training shall be provided by the regional transit authority. 273
(Z) May procure a policy or policies insuring members of 275
its board of trustees against liability on account of damages or 276
injury to persons and property resulting from any act or omission 277
of a member in the member's official capacity as a member of the 279
board or resulting solely out of the member's membership on the 280
board;
(AA) May enter into any agreement for the sale and 282
leaseback OR LEASE AND LEASEBACK of qualified mass commuting 283
vehicles for federal income tax purposes under section 168(F)(8) 284
of the Internal Revenue Code of 1954, as amended TRANSIT 285
FACILITIES, which agreement may contain all necessary covenants 286
for the security and protection of any lessor or the regional 287
transit authority including, but not limited to, indemnification 288
of the lessor against the loss of anticipated tax benefits 289
arising from acts, omissions, or misrepresentations of the 290
regional transit authority. In connection with that transaction, 291
the regional transit authority may contract for insurance and 292
letters of credit and pay any premiums or other charges for the 293
insurance and letters of credit. The fiscal officer shall not be 294
required to furnish any certificate under section 5705.41 of the 295
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Revised Code in connection with the execution of any such
agreement. 296
(BB) In regard to any contract entered into on or after 298
March 19, 1993, for the rendering of services or the supplying of 299
materials or for the construction, demolition, alteration, 300
repair, or reconstruction of transit facilities in which a bond 301
is required for the faithful performance of the contract, may 302
permit the person awarded the contract to utilize a letter of 303
credit issued by a bank or other financial institution in lieu of 304
the bond;
(CC) May enter into agreements with municipal corporations 306
located within the territorial jurisdiction of the regional 307
transit authority permitting regional transit authority police 308
officers employed under division (Y) of this section to exercise 309
full arrest powers, as provided in section 2935.03 of the Revised 310
Code, for the purpose of preserving the peace and enforcing all 311
laws of the state and ordinances and regulations of the municipal 312
corporation within the areas that may be agreed to by the 313
regional transit authority and the municipal corporation. 314
Section 2. That existing section 306.35 of the Revised 316
Code is hereby repealed. 317
Section 3. This act is hereby declared to be an emergency 319
measure necessary for the immediate preservation of the public 320
peace, health, and safety. The reason for such necessity lies in 321
the fact that the Federal Transit Authority, because of 322
reductions made by the Congress in the amount of federal funds
available to public transit agencies, is encouraging and 323
providing regulatory authority for such agencies to employ 324
innovative financing techniques in order to make the best 325
possible use of the federal funds that are available. Among
these techniques is that of lease and leaseback, which cannot be 326
utilized by Ohio regional transit authorities under current law. 327
However, granting the authorities the authority to use the lease 328
and leaseback financing technique at the earliest possible time 329
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can save them many hundreds of thousands of dollars, which then 330
will become available for other transit needs such as additional 331
equipment and route maintenance. Therefore, this act shall go
into immediate effect. 332