As Passed by the Senate 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
SENATORS BLESSING-NEIN-McLIN-HORN-WATTS-HOWARD-OELSLAGER- 11
LATTA-GARDNER 12
13
A B I L L
To amend sections 306.35 and 306.43 of the Revised 14
Code to authorize regional transit authorities to 16
use the lease and leaseback financing technique 17
to finance their facilities, to remove from the 18
Regional Transit Authority Law a reference to an 19
obsolete provision of the Internal Revenue Code 20
of 1954, and to declare an emergency. 21
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 23
Section 1. That sections 306.35 and 306.43 of the Revised 25
Code be amended to read as follows: 27
Sec. 306.35. Upon the creation of a regional transit 36
authority as provided by section 306.32 of the Revised Code, and 37
upon the qualifying of its board of trustees and the election of 38
a president and a vice-president, the authority shall exercise in 39
its own name all the rights, powers, and duties vested in and 40
conferred upon it by sections 306.30 to 306.53 of the Revised 41
Code. Subject to any reservations, limitations, and 42
qualifications that are set forth in those sections, the regional 44
transit authority:
(A) May sue or be sued in its corporate name; 46
(B) May make contracts in the exercise of the rights, 48
powers, and duties conferred upon it; 49
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(C) May adopt and at will alter a seal and use such seal 51
by causing it to be impressed, affixed, reproduced, or otherwise 52
used, but failure to affix the seal shall not affect the validity 53
of any instrument; 54
(D) May adopt, amend, and repeal bylaws for the 56
administration of its affairs and rules for the control of the 57
administration and operation of transit facilities under its 58
jurisdiction, and for the exercise of all of its rights of 59
ownership in those transit facilities; 60
(E) May fix, alter, and collect fares, rates, and rentals 62
and other charges for the use of transit facilities under its 63
jurisdiction to be determined exclusively by it for the purpose 64
of providing for the payment of the expenses of the regional 65
transit authority, the acquisition, construction, improvement, 66
extension, repair, maintenance, and operation of transit 67
facilities under its jurisdiction, the payment of principal and 68
interest on its obligations, and to fulfill the terms of any 69
agreements made with purchasers or holders of any such 70
obligations, or with any person or political subdivision; 71
(F) Shall have jurisdiction, control, possession, and 73
supervision of all property, rights, easements, licenses, moneys, 74
contracts, accounts, liens, books, records, maps, or other 75
property rights and interests conveyed, delivered, transferred, 76
or assigned to it; 77
(G) May acquire, construct, improve, extend, repair, 79
lease, operate, maintain, or manage transit facilities within or 80
without its territorial boundaries, considered necessary to 81
accomplish the purposes of its organization and make charges for 82
the use of transit facilities; 83
(H) May levy and collect taxes as provided in sections 85
306.40 and 306.49 of the Revised Code; 86
(I) May issue bonds secured by its general credit as 88
provided in section 306.40 of the Revised Code; 89
(J) May hold, encumber, control, acquire by donation, by 91
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purchase for cash or by installment payments, by lease-purchase 92
agreement, by lease with option to purchase, or by condemnation, 93
and may construct, own, lease as lessee or lessor, use, and sell, 94
real and personal property, or any interest or right in real and 96
personal property, within or without its territorial boundaries,
for the location or protection of transit facilities and 99
improvements and access to transit facilities and improvements, 100
the relocation of buildings, structures, and improvements 102
situated on lands acquired by the regional transit authority, or 103
for any other necessary purpose, or for obtaining or storing 104
materials to be used in constructing, maintaining, and improving 105
transit facilities under its jurisdiction;
(K) May exercise the power of eminent domain to acquire 107
property or any interest in property, within or without its 109
territorial boundaries, that is necessary or proper for the
construction or efficient operation of any transit facility or 110
access to any transit facility under its jurisdiction in 111
accordance with section 306.36 of the Revised Code; 113
(L) May provide by agreement with any county, including 115
the counties within its territorial boundaries, or any municipal 116
corporation or any combination of counties or municipal 117
corporations for the making of necessary surveys, appraisals, and 119
examinations preliminary to the acquisition or construction of 120
any transit facility and the amount of the expense for the 121
surveys, appraisals, and examinations to be paid by each such 122
county or municipal corporation;
(M) May provide by agreement with any county, including 124
the counties within its territorial boundaries, or any municipal 125
corporation or any combination of those counties or municipal 127
corporations for the acquisition, construction, improvement, 128
extension, maintenance, or operation of any transit facility 129
owned or to be owned and operated by it or owned or to be owned 130
and operated by any such county or municipal corporation and the 131
terms on which it shall be acquired, leased, constructed, 132
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maintained, or operated, and the amount of the cost and expense 133
of the acquisition, lease, construction, maintenance, or 134
operation to be paid by each such county or municipal 135
corporation;
(N) May issue revenue bonds for the purpose of acquiring, 137
replacing, improving, extending, enlarging, or constructing any 138
facility or permanent improvement that it is authorized to 139
acquire, replace, improve, extend, enlarge, or construct, 140
including all costs in connection with and incidental to the 142
acquisition, replacement, improvement, extension, enlargement, or
construction, and their financing, as provided by section 306.37 145
of the Revised Code;
(O) May enter into and supervise franchise agreements for 147
the operation of a transit system; 148
(P) May accept the assignment of and supervise an existing 151
franchise agreement for the operation of a transit system; 152
(Q) May exercise a right to purchase a transit system in 154
accordance with the acquisition terms of an existing franchise 155
agreement; and in connection with the purchase the regional 156
transit authority may issue revenue bonds as provided by section 157
306.37 of the Revised Code or issue bonds secured by its general 158
credit as provided in section 306.40 of the Revised Code; 159
(R) May apply for and accept grants or loans from the 161
United States, the state, or any other public body for the 162
purpose of providing for the development or improvement of 163
transit facilities, mass transportation facilities, equipment, 164
techniques, methods, or services, and grants or loans needed to 165
exercise a right to purchase a transit system pursuant to 166
agreement with the owner of those transit facilities, or for 168
providing lawful financial assistance to existing transit
systems; and may provide any consideration that may be required 170
in order to obtain those grants or loans from the United States, 172
the state, or other public body, either of which grants or loans
may be evidenced by the issuance of revenue bonds as provided by 173
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section 306.37 of the Revised Code or general obligation bonds as 174
provided by section 306.40 of the Revised Code; 175
(S) May employ and fix the compensation of consulting 177
engineers, superintendents, managers, and such other engineering, 178
construction, accounting and financial experts, attorneys, and 179
other employees and agents necessary for the accomplishment of 180
its purposes; 181
(T) May procure insurance against loss to it by reason of 183
damages to its properties resulting from fire, theft, accident, 184
or other casualties or by reason of its liability for any damages 185
to persons or property occurring in the construction or operation 186
of transit facilities under its jurisdiction or the conduct of 187
its activities; 188
(U) May maintain funds that it considers necessary for the 191
efficient performance of its duties;
(V) May direct its agents or employees, when properly 193
identified in writing, after at least five days' written notice, 194
to enter upon lands within or without its territorial boundaries 195
in order to make surveys and examinations preliminary to the 196
location and construction of transit facilities, without 197
liability to it or its agents or employees except for actual 198
damage done; 199
(W) On its own motion, may request the appropriate zoning 202
board, as defined in section 4563.03 of the Revised Code, to 203
establish and enforce zoning regulations pertaining to any 204
transit facility under its jurisdiction in the manner prescribed 205
by sections 4563.01 to 4563.21 of the Revised Code; 206
(X) If it acquires any existing transit system, shall 209
assume all the employer's obligations under any existing labor
contract between the employees and management of the system. If 210
the board acquires, constructs, controls, or operates any such 212
facilities, it shall negotiate arrangements to protect the
interests of employees affected by the acquisition, construction, 214
control, or operation. The arrangements shall include, but are 215
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not limited to:
(1) The preservation of rights, privileges, and benefits 217
under existing collective bargaining agreements or otherwise, the 218
preservation of rights and benefits under any existing pension 219
plans covering prior service, and continued participation in 220
social security in addition to participation in the public 221
employees retirement system as required in Chapter 145. of the 222
Revised Code; 223
(2) The continuation of collective bargaining rights; 225
(3) The protection of individual employees against a 227
worsening of their positions with respect to their employment; 228
(4) Assurances of employment to employees of those transit 230
systems and priority reemployment of employees terminated or laid 231
off; 232
(5) Paid training or retraining programs; 234
(6) Signed written labor agreements. 236
The arrangements may include provisions for the submission 239
of labor disputes to final and binding arbitration. 240
(Y) May provide for and maintain security operations, 242
including a transit police department, subject to section 306.352 243
of the Revised Code. Regional transit authority police officers 244
shall have the power and duty to act as peace officers within 245
transit facilities owned, operated, or leased by the transit 246
authority to protect the transit authority's property and the
person and property of passengers, to preserve the peace, and to 247
enforce all laws of the state and ordinances and regulations of 248
political subdivisions in which the transit authority operates. 249
Regional transit authority police officers also shall have the 250
power and duty to act as peace officers when they render 251
emergency assistance outside their jurisdiction to any other 252
peace officer who is not a regional transit authority police
officer and who has arrest authority under section 2935.03 of the 253
Revised Code. Regional transit authority police officers may 254
render emergency assistance if there is a threat of imminent 255
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physical danger to the peace officer, a threat of physical harm 256
to another person, or any other serious emergency situation and 257
if either the peace officer who is assisted requests emergency 259
assistance or it appears that the peace officer who is assisted 260
is unable to request emergency assistance and the circumstances 261
observed by the regional transit authority police officer 262
reasonably indicate that emergency assistance is appropriate. 263
Before exercising powers of arrest and the other powers and 266
duties of a peace officer, each regional transit authority police 267
officer shall take an oath and give bond to the state in a sum 268
that the board of trustees prescribes for the proper performance 269
of the officer's duties. 270
Persons employed as regional transit authority police 272
officers shall complete training for the position to which they 274
have been appointed as required by the Ohio peace officer
training commission as authorized in section 109.77 of the 275
Revised Code, or be otherwise qualified. The cost of the 277
training shall be provided by the regional transit authority. 278
(Z) May procure a policy or policies insuring members of 280
its board of trustees against liability on account of damages or 281
injury to persons and property resulting from any act or omission 282
of a member in the member's official capacity as a member of the 284
board or resulting solely out of the member's membership on the 285
board;
(AA) May enter into any agreement for the sale and 287
leaseback OR LEASE AND LEASEBACK of qualified mass commuting 288
vehicles for federal income tax purposes under section 168(F)(8) 289
of the Internal Revenue Code of 1954, as amended TRANSIT 290
FACILITIES, which agreement may contain all necessary covenants 291
for the security and protection of any lessor or the regional 292
transit authority including, but not limited to, indemnification 293
of the lessor against the loss of anticipated tax benefits 294
arising from acts, omissions, or misrepresentations of the 295
regional transit authority. In connection with that transaction, 296
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the regional transit authority may contract for insurance and 297
letters of credit and pay any premiums or other charges for the 298
insurance and letters of credit. The fiscal officer shall not be 299
required to furnish any certificate under section 5705.41 of the 300
Revised Code in connection with the execution of any such
agreement. 301
(BB) In regard to any contract entered into on or after 303
March 19, 1993, for the rendering of services or the supplying of 304
materials or for the construction, demolition, alteration, 305
repair, or reconstruction of transit facilities in which a bond 306
is required for the faithful performance of the contract, may 307
permit the person awarded the contract to utilize a letter of 308
credit issued by a bank or other financial institution in lieu of 309
the bond;
(CC) May enter into agreements with municipal corporations 311
located within the territorial jurisdiction of the regional 312
transit authority permitting regional transit authority police 313
officers employed under division (Y) of this section to exercise 314
full arrest powers, as provided in section 2935.03 of the Revised 315
Code, for the purpose of preserving the peace and enforcing all 316
laws of the state and ordinances and regulations of the municipal 317
corporation within the areas that may be agreed to by the 318
regional transit authority and the municipal corporation. 319
Sec. 306.43. (A) The board of trustees of a regional 328
transit authority or any officer or employee designated by such 329
board may make any contract for the purchase of goods or 330
services, the cost of which does not exceed twenty-five thousand 331
dollars. When an expenditure, other than for the acquisition of 332
real estate, the discharge of claims, or the acquisition of goods 333
or services under the circumstances described in division (H) of 334
this section, is expected to exceed twenty-five thousand dollars, 335
such expenditure shall be made through full and open competition 336
by the use of competitive procedures. The regional transit 337
authority shall use the competitive procedure, as set forth in 338
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divisions (B), (C), (D), and (E) of this section, that is most 339
appropriate under the circumstances of the procurement. 340
(B) Competitive sealed bidding is the preferred method of 342
procurement and a regional transit authority shall use that 343
method if all of the following conditions exist: 344
(1) A clear, complete and adequate description of the 346
goods, services, or work is available; 347
(2) Time permits the solicitation, submission, and 349
evaluation of sealed bids; 350
(3) The award will be made on the basis of price and other 352
price-related factors; 353
(4) It is not necessary to conduct discussions with 355
responding offerors about their bids; 356
(5) There is a reasonable expectation of receiving more 358
than one sealed bid. 359
A regional transit authority shall publish a notice calling 361
for bids once a week for no less than two consecutive weeks in at 362
least one newspaper of general circulation within the territorial 363
boundaries of the regional transit authority. A regional transit 364
authority may require that a bidder for any contract other than a 365
construction contract provide a bid guaranty in the form, 366
quality, and amount considered appropriate by the regional 367
transit authority. The board may let the contract to the lowest 368
responsive and responsible bidder. Where fewer than two 369
responsive bids are received, a regional transit authority may 370
negotiate price with the sole responsive bidder or may rescind 371
the solicitation and procure under division (H)(2) of this 372
section. 373
(C) A regional transit authority may use two-step 375
competitive bidding, consisting of a technical proposal and a 376
separate, subsequent sealed price bid from those submitting 377
acceptable technical proposals, if both of the following 378
conditions exist: 379
(1) A clear, complete, and adequate description of the 381
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goods, services, or work is not available, but definite criteria 382
exist for the evaluation of technical proposals; 383
(2) It is necessary to conduct discussions with responding 385
offerors. 386
A regional transit authority shall publish a notice calling 388
for technical proposals once a week for no less than two 389
consecutive weeks in at least one newspaper of general 390
circulation within the territorial boundaries of the regional 391
transit authority. A regional transit authority may require a 392
bid guaranty in the form, quality, and amount the regional 393
transit authority considers appropriate. The board may let the 394
contract to the lowest responsive and responsible bidder. Where 395
fewer than two responsive and responsible bids are received, a 396
regional transit authority may negotiate price with the sole 397
responsive and responsible bidder or may rescind the solicitation 398
and procure under division (H)(2) of this section. 399
(D) A regional transit authority shall make a procurement 401
by competitive proposals if competitive sealed bidding or 402
two-step competitive bidding is not appropriate. 403
A regional transit authority shall publish a notice calling 405
for proposals once a week for no less than two consecutive weeks 406
in at least one newspaper of general circulation within the 407
territorial boundaries of the regional transit authority. A 408
regional transit authority may require a proposal guaranty in the 409
form, quality, and amount considered appropriate by the regional 410
transit authority. The board may let the contract to the 411
proposer making the offer considered most advantageous to the 412
authority. Where fewer than two competent proposals are 413
received, a regional transit authority may negotiate price and 414
terms with the sole proposer or may rescind the solicitation and 415
procure under division (H)(2) of this section. 416
(E)(1) A regional transit authority shall procure the 418
services of an architect or engineer in the manner prescribed by 419
the "Federal Mass Transportation Act of 1987," Public Law 100-17, 420
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section 316, 101 Stat. 227, 232-234, 49 U.S.C.A. app. 1608 and 421
the services of a construction manager in the manner prescribed 422
by sections 9.33 to 9.332 of the Revised Code. 423
(2) A regional transit authority may procure revenue 425
rolling stock in the manner prescribed by division (B), (C), or 426
(D) of this section. 427
(3) All contracts for construction in excess of 429
twenty-five thousand dollars shall be made only after the 430
regional transit authority has published a notice calling for 431
bids once a week for two consecutive weeks in at least one 432
newspaper of general circulation within the territorial 433
boundaries of the regional transit authority. The board may 434
award a contract to the lowest responsive and responsible bidder. 435
Where only one responsive and responsible bid is received, the 436
regional transit authority may negotiate price with the sole 437
responsive bidder or may rescind the solicitation. The regional 438
transit authority shall award construction contracts in 439
accordance with sections 153.12 to 153.14 and 153.54 of the 440
Revised Code. Divisions (B) and (C) of this section shall not 441
apply to the award of contracts for construction. 442
(F) All contracts involving expenditures in excess of 444
twenty-five thousand dollars shall be in writing and shall be 445
accompanied by or shall refer to plans and specifications for the 446
work to be done. The plans and specifications shall at all times 447
be made and considered part of the contract. For all contracts 448
other than construction contracts, a regional transit authority 449
may require performance, payment, or maintenance guaranties or 450
any combination of such guaranties in the form, quality, and 451
amount it considers appropriate. The contract shall be approved 452
by the board and signed on behalf of the regional transit 453
authority and by the contractor. 454
(G) In making a contract, a regional transit authority may 456
give preference to goods produced in the United States in 457
accordance with the Buy America requirements in the "Surface 458
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Transportation Assistance Act of 1982," Public Law 97-424, 459
section 165, 96 Stat. 2097, 23 U.S.C.A. 101 note, as amended, and 460
the rules adopted thereunder. The regional transit authority 461
also may give preference to providers of goods produced in and 462
services provided in labor surplus areas as defined by the United 463
States department of labor in 41 U.S.C.A. 401 note, Executive 464
Order No. 12073, August 16, 1978, 43 Fed. Reg. 36873, as amended. 465
(H) Competitive procedures under this section are not 467
required in any of the following circumstances: 468
(1) The board of trustees of a regional transit authority, 470
by a two-thirds affirmative vote of its members, determines that 471
a real and present emergency exists under any of the following 472
conditions, and the board enters its determination and the 473
reasons for it in its proceedings: 474
(a) Affecting safety, welfare, or the ability to deliver 476
transportation services; 477
(b) Arising out of an interruption of contracts essential 479
to the provision of daily transit services; 480
(c) Involving actual physical damage to structures, 482
supplies, equipment, or property. 483
(2) The purchase consists of goods or services, or any 485
combination thereof, and after reasonable inquiry the board or 486
any officer or employee the board designates finds that only one 487
source of supply is reasonably available. 488
(3) The expenditure is for a renewal or renegotiation of a 490
lease or license for telecommunications or electronic data 491
processing equipment, services, or systems, or for the upgrade of 492
such equipment, services, or systems, or for the maintenance 493
thereof as supplied by the original source or its successors or 494
assigns. 495
(4) The purchase of goods or services is made from another 497
political subdivision, public agency, public transit system, 498
regional transit authority, the state, or the federal government, 499
or as a third-party beneficiary under a state or federal 500
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procurement contract, or as a participant in a department of 501
administrative services contract under division (B) of section 502
125.04 of the Revised Code. 503
(5) The sale and leaseback OR LEASE AND LEASEBACK of 505
qualified mass commuting vehicles TRANSIT FACILITIES is made as 506
provided in division (AA) of section 306.35 of the Revised Code. 508
(6) The purchase substantially involves services of a 510
personal, professional, highly technical, or scientific nature, 511
including but not limited to the services of an attorney, 512
physician, surveyor, appraiser, investigator, court reporter, 513
adjuster, advertising consultant, or licensed broker, or involves 514
the special skills or proprietary knowledge required for the 515
servicing of specialized equipment owned by the regional transit 516
authority. 517
(7) Services or supplies are available from a qualified 519
nonprofit agency pursuant to sections 4115.31 to 4115.35 of the 520
Revised Code. 521
(8) The purchase consists of the product or services of a 523
public utility. 524
(9) The purchase is for the services of individuals with 527
handicaps to work in the authority's commissaries or cafeterias 528
and those individuals are supplied by a nonprofit corporation or 529
association whose purpose is to assist individuals with 531
handicaps, whether or not that organization or association is 533
funded entirely or in part by the federal government, or the 535
purchase is for services provided by a nonprofit corporation or 536
association whose purpose is to assist individuals with
handicaps, whether or not that organization or association is 537
funded entirely or in part by the federal government. For 538
purposes of division (G)(9) of this section, "handicap" has the 540
same meaning as in section 4112.01 of the Revised Code.
(I) A regional transit authority may enter into blanket 542
purchase agreements for purchases of maintenance, operating, or 543
repair goods or services where the item cost does not exceed five 544
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hundred dollars and the annual expenditure does not exceed 545
twenty-five thousand dollars. 546
(J) Nothing contained in this section prohibits a regional 548
transit authority from participating in intergovernmental 549
cooperative purchasing arrangements. 550
(K) Except as otherwise provided in this chapter, a 552
regional transit authority shall make a sale or other disposition 553
of property through full and open competition. Except as 554
provided in division (L) of this section, all dispositions of 555
personal property and all grants of real property for terms 556
exceeding five years shall be made by public auction or 557
competitive procedure. 558
(L) The competitive procedures required by division (K) of 560
this section are not required in any of the following 561
circumstances: 562
(1) The grant is a component of a joint development 564
between public and private entities and is intended to enhance or 565
benefit public transit. 566
(2) The grant of a limited use or of a license affecting 568
land is made to an owner of abutting real property. 569
(3) The grant of a limited use is made to a public 571
utility. 572
(4) The grant or disposition is to a department of the 574
federal or state government, to a political subdivision of the 575
state, or to any other governmental entity. 576
(5) Used equipment is traded on the purchase of equipment 578
and the value of the used equipment is a price-related factor in 579
the basis for award for the purchase. 580
(6) The value of the personal property is such that 582
competitive procedures are not appropriate and the property 583
either is sold at its fair market value or is disposed of by gift 584
to a nonprofit entity having the general welfare or education of 585
the public as one of its principal objects. 586
(M) The board of trustees of a regional transit authority, 588
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when making a contract funded exclusively by state or local 589
moneys or any combination thereof, shall make a good faith effort 590
to use disadvantaged business enterprise participation to the 591
same extent required under Section 105(f) of the "Surface 592
Transportation Assistance Act of 1982," Public Law 97-424, 96 593
Stat. 2100, and Section 106(c) of the "Surface Transportation and 594
Uniform Relocation Assistance Act of 1987," Public Law 100-17, 595
101 Stat. 145, and the rules adopted thereunder. 596
(N) As used in this section: 598
(1) "Goods" means all things, including specially 600
manufactured goods, that are movable at the time of 601
identification to the contract for sale other than the money in 602
which the price is to be paid, investment securities, and things 603
in action. "Goods" also includes other identified things 604
attached to realty as described in section 1302.03 of the Revised 605
Code. 606
(2) "Services" means the furnishing of labor, time, or 608
effort by a contractor, not involving the delivery of goods or 609
reports other than goods or reports that are merely incidental to 610
the required performance, including but not limited to insurance, 611
bonding, or routine operation, routine repair, or routine 612
maintenance of existing structures, buildings, real property or 613
equipment, but does not include employment agreements, collective 614
bargaining agreements, or personal services. 615
(3) "Construction" means the process of building, 617
altering, repairing, improving, painting, decorating, or 618
demolishing any structure or building, or other improvements of 619
any kind to any real property owned or leased by a regional 620
transit authority. 621
(4) "Full and open competition" has the same meaning as in 623
the "Office of Federal Procurement Policy Act," Public Law 624
98-369, section 2731, 98 Stat. 1195 (1984), 41 U.S.C.A. 403. 625
(5) A bidder is "responsive" if, applying the criteria of 627
division (A) of section 9.312 of the Revised Code, the bidder is 628
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"responsive" as described in that section. 629
(6) A bidder is "responsible" if, applying the criteria of 631
division (A) of section 9.312 of the Revised Code and of the 632
"Office of Federal Procurement Policy Act," Public Law 98-369, 633
section 2731, 98 Stat. 1195 (1984), 41 U.S.C.A. 403, the bidder 634
is "responsible" as described in those sections. 635
Section 2. That existing sections 306.35 and 306.43 of the 637
Revised Code are hereby repealed. 639
Section 3. This act is hereby declared to be an emergency 641
measure necessary for the immediate preservation of the public 642
peace, health, and safety. The reason for such necessity lies in 643
the fact that the Federal Transit Authority, because of 644
reductions made by the Congress in the amount of federal funds
available to public transit agencies, is encouraging and 645
providing regulatory authority for such agencies to employ 646
innovative financing techniques in order to make the best 647
possible use of the federal funds that are available. Among
these techniques is that of lease and leaseback, which cannot be 648
utilized by Ohio regional transit authorities under current law. 649
However, granting the authorities the authority to use the lease 650
and leaseback financing technique at the earliest possible time 651
can save them many hundreds of thousands of dollars, which then 652
will become available for other transit needs such as additional 653
equipment and route maintenance. Therefore, this act shall go
into immediate effect. 654