As Passed by the House 1
122nd General Assembly 4
Regular Session Sub. H. B. No. 228 5
1997-1998 6
REPRESENTATIVES CORBIN-ROBERTS-MOTTLEY-JACOBSON-LEWIS-THOMAS- 8
BEATTY-MEAD-GARCIA-TAVARES-METELSKY-CAREY-PATTON-COLONNA- 9
SALERNO-OPFER-MALLORY-WILSON-REID-BRITTON-PADGETT-SULZER-KREBS 10
12
A B I L L
To amend sections 306.35 and 306.43 of the Revised 13
Code to authorize regional transit authorities to 15
use the lease and leaseback financing technique 16
to finance their facilities, to remove from the 17
Regional Transit Authority Law a reference to an 18
obsolete provision of the Internal Revenue Code 19
of 1954, and to declare an emergency. 20
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 22
Section 1. That sections 306.35 and 306.43 of the Revised 24
Code be amended to read as follows: 26
Sec. 306.35. Upon the creation of a regional transit 35
authority as provided by section 306.32 of the Revised Code, and 36
upon the qualifying of its board of trustees and the election of 37
a president and a vice-president, the authority shall exercise in 38
its own name all the rights, powers, and duties vested in and 39
conferred upon it by sections 306.30 to 306.53 of the Revised 40
Code. Subject to any reservations, limitations, and 41
qualifications that are set forth in those sections, the regional 43
transit authority:
(A) May sue or be sued in its corporate name; 45
(B) May make contracts in the exercise of the rights, 47
powers, and duties conferred upon it; 48
(C) May adopt and at will alter a seal and use such seal 50
by causing it to be impressed, affixed, reproduced, or otherwise 51
2
used, but failure to affix the seal shall not affect the validity 52
of any instrument; 53
(D) May adopt, amend, and repeal bylaws for the 55
administration of its affairs and rules for the control of the 56
administration and operation of transit facilities under its 57
jurisdiction, and for the exercise of all of its rights of 58
ownership in those transit facilities; 59
(E) May fix, alter, and collect fares, rates, and rentals 61
and other charges for the use of transit facilities under its 62
jurisdiction to be determined exclusively by it for the purpose 63
of providing for the payment of the expenses of the regional 64
transit authority, the acquisition, construction, improvement, 65
extension, repair, maintenance, and operation of transit 66
facilities under its jurisdiction, the payment of principal and 67
interest on its obligations, and to fulfill the terms of any 68
agreements made with purchasers or holders of any such 69
obligations, or with any person or political subdivision; 70
(F) Shall have jurisdiction, control, possession, and 72
supervision of all property, rights, easements, licenses, moneys, 73
contracts, accounts, liens, books, records, maps, or other 74
property rights and interests conveyed, delivered, transferred, 75
or assigned to it; 76
(G) May acquire, construct, improve, extend, repair, 78
lease, operate, maintain, or manage transit facilities within or 79
without its territorial boundaries, considered necessary to 80
accomplish the purposes of its organization and make charges for 81
the use of transit facilities; 82
(H) May levy and collect taxes as provided in sections 84
306.40 and 306.49 of the Revised Code; 85
(I) May issue bonds secured by its general credit as 87
provided in section 306.40 of the Revised Code; 88
(J) May hold, encumber, control, acquire by donation, by 90
purchase for cash or by installment payments, by lease-purchase 91
agreement, by lease with option to purchase, or by condemnation, 92
3
and may construct, own, lease as lessee or lessor, use, and sell, 93
real and personal property, or any interest or right in real and 95
personal property, within or without its territorial boundaries,
for the location or protection of transit facilities and 98
improvements and access to transit facilities and improvements, 99
the relocation of buildings, structures, and improvements 101
situated on lands acquired by the regional transit authority, or 102
for any other necessary purpose, or for obtaining or storing 103
materials to be used in constructing, maintaining, and improving 104
transit facilities under its jurisdiction;
(K) May exercise the power of eminent domain to acquire 106
property or any interest in property, within or without its 108
territorial boundaries, that is necessary or proper for the
construction or efficient operation of any transit facility or 109
access to any transit facility under its jurisdiction in 110
accordance with section 306.36 of the Revised Code; 112
(L) May provide by agreement with any county, including 114
the counties within its territorial boundaries, or any municipal 115
corporation or any combination of counties or municipal 116
corporations for the making of necessary surveys, appraisals, and 118
examinations preliminary to the acquisition or construction of 119
any transit facility and the amount of the expense for the 120
surveys, appraisals, and examinations to be paid by each such 121
county or municipal corporation;
(M) May provide by agreement with any county, including 123
the counties within its territorial boundaries, or any municipal 124
corporation or any combination of those counties or municipal 126
corporations for the acquisition, construction, improvement, 127
extension, maintenance, or operation of any transit facility 128
owned or to be owned and operated by it or owned or to be owned 129
and operated by any such county or municipal corporation and the 130
terms on which it shall be acquired, leased, constructed, 131
maintained, or operated, and the amount of the cost and expense 132
of the acquisition, lease, construction, maintenance, or 133
4
operation to be paid by each such county or municipal 134
corporation;
(N) May issue revenue bonds for the purpose of acquiring, 136
replacing, improving, extending, enlarging, or constructing any 137
facility or permanent improvement that it is authorized to 138
acquire, replace, improve, extend, enlarge, or construct, 139
including all costs in connection with and incidental to the 141
acquisition, replacement, improvement, extension, enlargement, or
construction, and their financing, as provided by section 306.37 144
of the Revised Code;
(O) May enter into and supervise franchise agreements for 146
the operation of a transit system; 147
(P) May accept the assignment of and supervise an existing 150
franchise agreement for the operation of a transit system; 151
(Q) May exercise a right to purchase a transit system in 153
accordance with the acquisition terms of an existing franchise 154
agreement; and in connection with the purchase the regional 155
transit authority may issue revenue bonds as provided by section 156
306.37 of the Revised Code or issue bonds secured by its general 157
credit as provided in section 306.40 of the Revised Code; 158
(R) May apply for and accept grants or loans from the 160
United States, the state, or any other public body for the 161
purpose of providing for the development or improvement of 162
transit facilities, mass transportation facilities, equipment, 163
techniques, methods, or services, and grants or loans needed to 164
exercise a right to purchase a transit system pursuant to 165
agreement with the owner of those transit facilities, or for 167
providing lawful financial assistance to existing transit
systems; and may provide any consideration that may be required 169
in order to obtain those grants or loans from the United States, 171
the state, or other public body, either of which grants or loans
may be evidenced by the issuance of revenue bonds as provided by 172
section 306.37 of the Revised Code or general obligation bonds as 173
provided by section 306.40 of the Revised Code; 174
5
(S) May employ and fix the compensation of consulting 176
engineers, superintendents, managers, and such other engineering, 177
construction, accounting and financial experts, attorneys, and 178
other employees and agents necessary for the accomplishment of 179
its purposes; 180
(T) May procure insurance against loss to it by reason of 182
damages to its properties resulting from fire, theft, accident, 183
or other casualties or by reason of its liability for any damages 184
to persons or property occurring in the construction or operation 185
of transit facilities under its jurisdiction or the conduct of 186
its activities; 187
(U) May maintain funds that it considers necessary for the 190
efficient performance of its duties;
(V) May direct its agents or employees, when properly 192
identified in writing, after at least five days' written notice, 193
to enter upon lands within or without its territorial boundaries 194
in order to make surveys and examinations preliminary to the 195
location and construction of transit facilities, without 196
liability to it or its agents or employees except for actual 197
damage done; 198
(W) On its own motion, may request the appropriate zoning 201
board, as defined in section 4563.03 of the Revised Code, to 202
establish and enforce zoning regulations pertaining to any 203
transit facility under its jurisdiction in the manner prescribed 204
by sections 4563.01 to 4563.21 of the Revised Code; 205
(X) If it acquires any existing transit system, shall 208
assume all the employer's obligations under any existing labor
contract between the employees and management of the system. If 209
the board acquires, constructs, controls, or operates any such 211
facilities, it shall negotiate arrangements to protect the
interests of employees affected by the acquisition, construction, 213
control, or operation. The arrangements shall include, but are 214
not limited to:
(1) The preservation of rights, privileges, and benefits 216
6
under existing collective bargaining agreements or otherwise, the 217
preservation of rights and benefits under any existing pension 218
plans covering prior service, and continued participation in 219
social security in addition to participation in the public 220
employees retirement system as required in Chapter 145. of the 221
Revised Code; 222
(2) The continuation of collective bargaining rights; 224
(3) The protection of individual employees against a 226
worsening of their positions with respect to their employment; 227
(4) Assurances of employment to employees of those transit 229
systems and priority reemployment of employees terminated or laid 230
off; 231
(5) Paid training or retraining programs; 233
(6) Signed written labor agreements. 235
The arrangements may include provisions for the submission 238
of labor disputes to final and binding arbitration. 239
(Y) May provide for and maintain security operations, 241
including a transit police department, subject to section 306.352 242
of the Revised Code. Regional transit authority police officers 243
shall have the power and duty to act as peace officers within 244
transit facilities owned, operated, or leased by the transit 245
authority to protect the transit authority's property and the
person and property of passengers, to preserve the peace, and to 246
enforce all laws of the state and ordinances and regulations of 247
political subdivisions in which the transit authority operates. 248
Regional transit authority police officers also shall have the 249
power and duty to act as peace officers when they render 250
emergency assistance outside their jurisdiction to any other 251
peace officer who is not a regional transit authority police
officer and who has arrest authority under section 2935.03 of the 252
Revised Code. Regional transit authority police officers may 253
render emergency assistance if there is a threat of imminent 254
physical danger to the peace officer, a threat of physical harm 255
to another person, or any other serious emergency situation and 256
7
if either the peace officer who is assisted requests emergency 258
assistance or it appears that the peace officer who is assisted 259
is unable to request emergency assistance and the circumstances 260
observed by the regional transit authority police officer 261
reasonably indicate that emergency assistance is appropriate. 262
Before exercising powers of arrest and the other powers and 265
duties of a peace officer, each regional transit authority police 266
officer shall take an oath and give bond to the state in a sum 267
that the board of trustees prescribes for the proper performance 268
of the officer's duties. 269
Persons employed as regional transit authority police 271
officers shall complete training for the position to which they 273
have been appointed as required by the Ohio peace officer
training commission as authorized in section 109.77 of the 274
Revised Code, or be otherwise qualified. The cost of the 276
training shall be provided by the regional transit authority. 277
(Z) May procure a policy or policies insuring members of 279
its board of trustees against liability on account of damages or 280
injury to persons and property resulting from any act or omission 281
of a member in the member's official capacity as a member of the 283
board or resulting solely out of the member's membership on the 284
board;
(AA) May enter into any agreement for the sale and 286
leaseback OR LEASE AND LEASEBACK of qualified mass commuting 287
vehicles for federal income tax purposes under section 168(F)(8) 288
of the Internal Revenue Code of 1954, as amended TRANSIT 289
FACILITIES, which agreement may contain all necessary covenants 290
for the security and protection of any lessor or the regional 291
transit authority including, but not limited to, indemnification 292
of the lessor against the loss of anticipated tax benefits 293
arising from acts, omissions, or misrepresentations of the 294
regional transit authority. In connection with that transaction, 295
the regional transit authority may contract for insurance and 296
letters of credit and pay any premiums or other charges for the 297
8
insurance and letters of credit. The fiscal officer shall not be 298
required to furnish any certificate under section 5705.41 of the 299
Revised Code in connection with the execution of any such
agreement. 300
(BB) In regard to any contract entered into on or after 302
March 19, 1993, for the rendering of services or the supplying of 303
materials or for the construction, demolition, alteration, 304
repair, or reconstruction of transit facilities in which a bond 305
is required for the faithful performance of the contract, may 306
permit the person awarded the contract to utilize a letter of 307
credit issued by a bank or other financial institution in lieu of 308
the bond;
(CC) May enter into agreements with municipal corporations 310
located within the territorial jurisdiction of the regional 311
transit authority permitting regional transit authority police 312
officers employed under division (Y) of this section to exercise 313
full arrest powers, as provided in section 2935.03 of the Revised 314
Code, for the purpose of preserving the peace and enforcing all 315
laws of the state and ordinances and regulations of the municipal 316
corporation within the areas that may be agreed to by the 317
regional transit authority and the municipal corporation. 318
Sec. 306.43. (A) The board of trustees of a regional 327
transit authority or any officer or employee designated by such 328
board may make any contract for the purchase of goods or 329
services, the cost of which does not exceed twenty-five thousand 330
dollars. When an expenditure, other than for the acquisition of 331
real estate, the discharge of claims, or the acquisition of goods 332
or services under the circumstances described in division (H) of 333
this section, is expected to exceed twenty-five thousand dollars, 334
such expenditure shall be made through full and open competition 335
by the use of competitive procedures. The regional transit 336
authority shall use the competitive procedure, as set forth in 337
divisions (B), (C), (D), and (E) of this section, that is most 338
appropriate under the circumstances of the procurement. 339
9
(B) Competitive sealed bidding is the preferred method of 341
procurement and a regional transit authority shall use that 342
method if all of the following conditions exist: 343
(1) A clear, complete and adequate description of the 345
goods, services, or work is available; 346
(2) Time permits the solicitation, submission, and 348
evaluation of sealed bids; 349
(3) The award will be made on the basis of price and other 351
price-related factors; 352
(4) It is not necessary to conduct discussions with 354
responding offerors about their bids; 355
(5) There is a reasonable expectation of receiving more 357
than one sealed bid. 358
A regional transit authority shall publish a notice calling 360
for bids once a week for no less than two consecutive weeks in at 361
least one newspaper of general circulation within the territorial 362
boundaries of the regional transit authority. A regional transit 363
authority may require that a bidder for any contract other than a 364
construction contract provide a bid guaranty in the form, 365
quality, and amount considered appropriate by the regional 366
transit authority. The board may let the contract to the lowest 367
responsive and responsible bidder. Where fewer than two 368
responsive bids are received, a regional transit authority may 369
negotiate price with the sole responsive bidder or may rescind 370
the solicitation and procure under division (H)(2) of this 371
section. 372
(C) A regional transit authority may use two-step 374
competitive bidding, consisting of a technical proposal and a 375
separate, subsequent sealed price bid from those submitting 376
acceptable technical proposals, if both of the following 377
conditions exist: 378
(1) A clear, complete, and adequate description of the 380
goods, services, or work is not available, but definite criteria 381
exist for the evaluation of technical proposals; 382
10
(2) It is necessary to conduct discussions with responding 384
offerors. 385
A regional transit authority shall publish a notice calling 387
for technical proposals once a week for no less than two 388
consecutive weeks in at least one newspaper of general 389
circulation within the territorial boundaries of the regional 390
transit authority. A regional transit authority may require a 391
bid guaranty in the form, quality, and amount the regional 392
transit authority considers appropriate. The board may let the 393
contract to the lowest responsive and responsible bidder. Where 394
fewer than two responsive and responsible bids are received, a 395
regional transit authority may negotiate price with the sole 396
responsive and responsible bidder or may rescind the solicitation 397
and procure under division (H)(2) of this section. 398
(D) A regional transit authority shall make a procurement 400
by competitive proposals if competitive sealed bidding or 401
two-step competitive bidding is not appropriate. 402
A regional transit authority shall publish a notice calling 404
for proposals once a week for no less than two consecutive weeks 405
in at least one newspaper of general circulation within the 406
territorial boundaries of the regional transit authority. A 407
regional transit authority may require a proposal guaranty in the 408
form, quality, and amount considered appropriate by the regional 409
transit authority. The board may let the contract to the 410
proposer making the offer considered most advantageous to the 411
authority. Where fewer than two competent proposals are 412
received, a regional transit authority may negotiate price and 413
terms with the sole proposer or may rescind the solicitation and 414
procure under division (H)(2) of this section. 415
(E)(1) A regional transit authority shall procure the 417
services of an architect or engineer in the manner prescribed by 418
the "Federal Mass Transportation Act of 1987," Public Law 100-17, 419
section 316, 101 Stat. 227, 232-234, 49 U.S.C.A. app. 1608 and 420
the services of a construction manager in the manner prescribed 421
11
by sections 9.33 to 9.332 of the Revised Code. 422
(2) A regional transit authority may procure revenue 424
rolling stock in the manner prescribed by division (B), (C), or 425
(D) of this section. 426
(3) All contracts for construction in excess of 428
twenty-five thousand dollars shall be made only after the 429
regional transit authority has published a notice calling for 430
bids once a week for two consecutive weeks in at least one 431
newspaper of general circulation within the territorial 432
boundaries of the regional transit authority. The board may 433
award a contract to the lowest responsive and responsible bidder. 434
Where only one responsive and responsible bid is received, the 435
regional transit authority may negotiate price with the sole 436
responsive bidder or may rescind the solicitation. The regional 437
transit authority shall award construction contracts in 438
accordance with sections 153.12 to 153.14 and 153.54 of the 439
Revised Code. Divisions (B) and (C) of this section shall not 440
apply to the award of contracts for construction. 441
(F) All contracts involving expenditures in excess of 443
twenty-five thousand dollars shall be in writing and shall be 444
accompanied by or shall refer to plans and specifications for the 445
work to be done. The plans and specifications shall at all times 446
be made and considered part of the contract. For all contracts 447
other than construction contracts, a regional transit authority 448
may require performance, payment, or maintenance guaranties or 449
any combination of such guaranties in the form, quality, and 450
amount it considers appropriate. The contract shall be approved 451
by the board and signed on behalf of the regional transit 452
authority and by the contractor. 453
(G) In making a contract, a regional transit authority may 455
give preference to goods produced in the United States in 456
accordance with the Buy America requirements in the "Surface 457
Transportation Assistance Act of 1982," Public Law 97-424, 458
section 165, 96 Stat. 2097, 23 U.S.C.A. 101 note, as amended, and 459
12
the rules adopted thereunder. The regional transit authority 460
also may give preference to providers of goods produced in and 461
services provided in labor surplus areas as defined by the United 462
States department of labor in 41 U.S.C.A. 401 note, Executive 463
Order No. 12073, August 16, 1978, 43 Fed. Reg. 36873, as amended. 464
(H) Competitive procedures under this section are not 466
required in any of the following circumstances: 467
(1) The board of trustees of a regional transit authority, 469
by a two-thirds affirmative vote of its members, determines that 470
a real and present emergency exists under any of the following 471
conditions, and the board enters its determination and the 472
reasons for it in its proceedings: 473
(a) Affecting safety, welfare, or the ability to deliver 475
transportation services; 476
(b) Arising out of an interruption of contracts essential 478
to the provision of daily transit services; 479
(c) Involving actual physical damage to structures, 481
supplies, equipment, or property. 482
(2) The purchase consists of goods or services, or any 484
combination thereof, and after reasonable inquiry the board or 485
any officer or employee the board designates finds that only one 486
source of supply is reasonably available. 487
(3) The expenditure is for a renewal or renegotiation of a 489
lease or license for telecommunications or electronic data 490
processing equipment, services, or systems, or for the upgrade of 491
such equipment, services, or systems, or for the maintenance 492
thereof as supplied by the original source or its successors or 493
assigns. 494
(4) The purchase of goods or services is made from another 496
political subdivision, public agency, public transit system, 497
regional transit authority, the state, or the federal government, 498
or as a third-party beneficiary under a state or federal 499
procurement contract, or as a participant in a department of 500
administrative services contract under division (B) of section 501
13
125.04 of the Revised Code. 502
(5) The sale and leaseback OR LEASE AND LEASEBACK of 504
qualified mass commuting vehicles TRANSIT FACILITIES is made as 505
provided in division (AA) of section 306.35 of the Revised Code. 507
(6) The purchase substantially involves services of a 509
personal, professional, highly technical, or scientific nature, 510
including but not limited to the services of an attorney, 511
physician, surveyor, appraiser, investigator, court reporter, 512
adjuster, advertising consultant, or licensed broker, or involves 513
the special skills or proprietary knowledge required for the 514
servicing of specialized equipment owned by the regional transit 515
authority. 516
(7) Services or supplies are available from a qualified 518
nonprofit agency pursuant to sections 4115.31 to 4115.35 of the 519
Revised Code. 520
(8) The purchase consists of the product or services of a 522
public utility. 523
(9) The purchase is for the services of individuals with 526
handicaps to work in the authority's commissaries or cafeterias 527
and those individuals are supplied by a nonprofit corporation or 528
association whose purpose is to assist individuals with 530
handicaps, whether or not that organization or association is 532
funded entirely or in part by the federal government, or the 534
purchase is for services provided by a nonprofit corporation or 535
association whose purpose is to assist individuals with
handicaps, whether or not that organization or association is 536
funded entirely or in part by the federal government. For 537
purposes of division (G)(9) of this section, "handicap" has the 539
same meaning as in section 4112.01 of the Revised Code.
(I) A regional transit authority may enter into blanket 541
purchase agreements for purchases of maintenance, operating, or 542
repair goods or services where the item cost does not exceed five 543
hundred dollars and the annual expenditure does not exceed 544
twenty-five thousand dollars. 545
14
(J) Nothing contained in this section prohibits a regional 547
transit authority from participating in intergovernmental 548
cooperative purchasing arrangements. 549
(K) Except as otherwise provided in this chapter, a 551
regional transit authority shall make a sale or other disposition 552
of property through full and open competition. Except as 553
provided in division (L) of this section, all dispositions of 554
personal property and all grants of real property for terms 555
exceeding five years shall be made by public auction or 556
competitive procedure. 557
(L) The competitive procedures required by division (K) of 559
this section are not required in any of the following 560
circumstances: 561
(1) The grant is a component of a joint development 563
between public and private entities and is intended to enhance or 564
benefit public transit. 565
(2) The grant of a limited use or of a license affecting 567
land is made to an owner of abutting real property. 568
(3) The grant of a limited use is made to a public 570
utility. 571
(4) The grant or disposition is to a department of the 573
federal or state government, to a political subdivision of the 574
state, or to any other governmental entity. 575
(5) Used equipment is traded on the purchase of equipment 577
and the value of the used equipment is a price-related factor in 578
the basis for award for the purchase. 579
(6) The value of the personal property is such that 581
competitive procedures are not appropriate and the property 582
either is sold at its fair market value or is disposed of by gift 583
to a nonprofit entity having the general welfare or education of 584
the public as one of its principal objects. 585
(M) The board of trustees of a regional transit authority, 587
when making a contract funded exclusively by state or local 588
moneys or any combination thereof, shall make a good faith effort 589
15
to use disadvantaged business enterprise participation to the 590
same extent required under Section 105(f) of the "Surface 591
Transportation Assistance Act of 1982," Public Law 97-424, 96 592
Stat. 2100, and Section 106(c) of the "Surface Transportation and 593
Uniform Relocation Assistance Act of 1987," Public Law 100-17, 594
101 Stat. 145, and the rules adopted thereunder. 595
(N) As used in this section: 597
(1) "Goods" means all things, including specially 599
manufactured goods, that are movable at the time of 600
identification to the contract for sale other than the money in 601
which the price is to be paid, investment securities, and things 602
in action. "Goods" also includes other identified things 603
attached to realty as described in section 1302.03 of the Revised 604
Code. 605
(2) "Services" means the furnishing of labor, time, or 607
effort by a contractor, not involving the delivery of goods or 608
reports other than goods or reports that are merely incidental to 609
the required performance, including but not limited to insurance, 610
bonding, or routine operation, routine repair, or routine 611
maintenance of existing structures, buildings, real property or 612
equipment, but does not include employment agreements, collective 613
bargaining agreements, or personal services. 614
(3) "Construction" means the process of building, 616
altering, repairing, improving, painting, decorating, or 617
demolishing any structure or building, or other improvements of 618
any kind to any real property owned or leased by a regional 619
transit authority. 620
(4) "Full and open competition" has the same meaning as in 622
the "Office of Federal Procurement Policy Act," Public Law 623
98-369, section 2731, 98 Stat. 1195 (1984), 41 U.S.C.A. 403. 624
(5) A bidder is "responsive" if, applying the criteria of 626
division (A) of section 9.312 of the Revised Code, the bidder is 627
"responsive" as described in that section. 628
(6) A bidder is "responsible" if, applying the criteria of 630
16
division (A) of section 9.312 of the Revised Code and of the 631
"Office of Federal Procurement Policy Act," Public Law 98-369, 632
section 2731, 98 Stat. 1195 (1984), 41 U.S.C.A. 403, the bidder 633
is "responsible" as described in those sections. 634
Section 2. That existing sections 306.35 and 306.43 of the 636
Revised Code are hereby repealed. 638
Section 3. This act is hereby declared to be an emergency 640
measure necessary for the immediate preservation of the public 641
peace, health, and safety. The reason for such necessity lies in 642
the fact that the Federal Transit Authority, because of 643
reductions made by the Congress in the amount of federal funds
available to public transit agencies, is encouraging and 644
providing regulatory authority for such agencies to employ 645
innovative financing techniques in order to make the best 646
possible use of the federal funds that are available. Among
these techniques is that of lease and leaseback, which cannot be 647
utilized by Ohio regional transit authorities under current law. 648
However, granting the authorities the authority to use the lease 649
and leaseback financing technique at the earliest possible time 650
can save them many hundreds of thousands of dollars, which then 651
will become available for other transit needs such as additional 652
equipment and route maintenance. Therefore, this act shall go
into immediate effect. 653