To amend sections 5501.03, 5501.311, 5531.09, and 5531.18 and to enact sections 5539.01, 5539.02, 5539.03, 5539.031, 5539.04, 5539.05, 5539.06, 5539.07, 5539.08, 5539.09, 5539.10, and 5539.11 of the Revised Code to authorize the creation of transportation innovation authorities by specified governmental entities and to establish the powers and duties of such authorities.

Section 1. That sections 5501.03, 5501.311, 5531.09, and 5531.18 be amended and sections 5539.01, 5539.02, 5539.03, 5539.031, 5539.04, 5539.05, 5539.06, 5539.07, 5539.08, 5539.09, 5539.10, and 5539.11 of the Revised Code be enacted to read as follows:

Sec. 5501.03.  (A) The department of transportation shall:

(1) Exercise and perform such other duties, powers, and functions as are conferred by law on the director, the department, the assistant directors, the deputy directors, or on the divisions of the department;

(2) Coordinate and develop, in cooperation with local, regional, state, and federal planning agencies and authorities, comprehensive and balanced state policy and planning to meet present and future needs for adequate transportation facilities in this state, including recommendations for adequate funding of the implementation of such planning;

(3) Coordinate its activities with those of other appropriate state departments, public agencies, and authorities, and enter into any contracts with such departments, agencies, and authorities as may be necessary to carry out its duties, powers, and functions;

(4) Cooperate with and assist the public utilities commission in the commission's administration of sections 4907.47 to 4907.476 of the Revised Code, particularly with respect to the federal highway administration;

(5) Cooperate with and assist the Ohio power siting board in the board's administration of Chapter 4906. of the Revised Code;

(6) Give particular consideration to the development of policy and planning for public transportation facilities, and to the coordination of associated activities relating thereto, as prescribed under divisions (A)(2) and (3) of this section;

(7) Conduct, in cooperation with the Ohio legislative service commission, any studies or comparisons of state traffic laws and local traffic ordinances with model laws and ordinances that may be required to meet program standards adopted by the United States department of transportation pursuant to the "Highway Safety Act of 1966," 80 Stat. 731, U.S.C.A. 401;

(8) Prepare, print, distribute, and advertise books, maps, pamphlets, and other information that, in the judgment of the director, will inform the public and other governmental departments, agencies, and authorities as to the duties, powers, and functions of the department;

(9) In its research and development program, consider technologies for improving roadways, including construction techniques and materials to prolong project life, being used or developed by other states that have geographic, geologic, or climatic features similar to this state's, and collaborate with those states in that development.

(B) Nothing contained in division (A)(1) of this section shall be held to in any manner affect, limit, restrict, or otherwise interfere with the exercise of powers relating to transportation facilities by appropriate agencies of the federal government, or by counties, municipal corporations, or other political subdivisions or special districts in this state authorized by law to exercise such powers.

(C) The department may use all appropriate sources of revenue to assist in the development and implementation of rail service as defined by division (C) of section 4981.01 of the Revised Code.

(D) The director of transportation may enter into contracts with public agencies including political subdivisions, other state agencies, boards, commissions, regional transit authorities, county transit boards, and port authorities, transportation innovation authorities, and any corporation organized under the laws of Ohio, to administer the design, qualification of bidders, competitive bid letting, construction inspection, and acceptance of any projects administered by the department, provided the administration of such projects is performed in accordance with all applicable state and federal laws and regulations with oversight by the department.

Sec. 5501.311.  (A) Notwithstanding sections 123.01 and 127.16 of the Revised Code the director of transportation may lease or lease-purchase all or any part of a transportation facility to or from one or more persons, one or more governmental agencies, a transportation improvement district, transportation innovation authority, or any combination thereof, and may grant leases, easements, or licenses for lands under the control of the department of transportation. The director may adopt rules necessary to give effect to this section.

(B) Plans and specifications for the construction of a transportation facility under a lease or lease-purchase agreement are subject to approval of the director and must meet or exceed all applicable standards of the department.

(C) Any lease or lease-purchase agreement under which the department is the lessee shall be for a period not exceeding the then current two-year period for which appropriations have been made by the general assembly to the department, and such agreement may contain such other terms as the department and the other parties thereto agree, notwithstanding any other provision of law, including provisions that rental payments in amounts sufficient to pay bond service charges payable during the current two-year lease term shall be an absolute and unconditional obligation of the department independent of all other duties under the agreement without set-off or deduction or any other similar rights or defenses. Any such agreement may provide for renewal of the agreement at the end of each term for another term, not exceeding two years, provided that no renewal shall be effective until the effective date of an appropriation enacted by the general assembly from which the department may lawfully pay rentals under such agreement. Any such agreement may include, without limitation, any agreement by the department with respect to any costs of transportation facilities to be included prior to acquisition and construction of such transportation facilities. Any such agreement shall not constitute a debt or pledge of the faith and credit of the state, or of any political subdivision of the state, and the lessor shall have no right to have taxes or excises levied by the general assembly, or the taxing authority of any political subdivision of the state, for the payment of rentals thereunder. Any such agreement shall contain a statement to that effect.

(D) A municipal corporation, township, or county may use service payments in lieu of taxes credited to special funds or accounts pursuant to sections 5709.43, 5709.75, and 5709.80 of the Revised Code to provide its contribution to the cost of a transportation facility, provided such facility was among the purposes for which such service payments were authorized. The contribution may be in the form of a lump sum or periodic payments.

(E) Pursuant to the "Telecommunications Act of 1996," 110 Stat. 152, 47 U.S.C. 332 note, the director may grant a lease, easement, or license in a transportation facility to a telecommunications service provider for construction, placement, or operation of a telecommunications facility. An interest granted under this division is subject to all of the following conditions:

(1) The transportation facility is owned in fee simple or easement by this state at the time the lease, easement, or license is granted to the telecommunications provider.

(2) The lease, easement, or license shall be granted on a competitive basis in accordance with policies and procedures to be determined by the director. The policies and procedures may include provisions for master leases for multiple sites.

(3) The telecommunications facility shall be designed to accommodate the state's multi-agency radio communication system, the intelligent transportation system, and the department's communication system as the director may determine is necessary for highway or other departmental purposes.

(4) The telecommunications facility shall be designed to accommodate such additional telecommunications equipment as may feasibly be co-located thereon as determined in the discretion of the director.

(5) The telecommunications service providers awarded the lease, easement, or license, agree to permit other telecommunications service providers to co-locate on the telecommunications facility, and agree to the terms and conditions of the co-location as determined in the discretion of the director.

(6) The director shall require indemnity agreements in favor of the department as a condition of any lease, easement, or license granted under this division. Each indemnity agreement shall secure this state and its agents from liability for damages arising out of safety hazards, zoning, and any other matter of public interest the director considers necessary.

(7) The telecommunications service provider fully complies with any permit issued under section 5515.01 of the Revised Code pertaining to land that is the subject of the lease, easement, or license.

(8) All plans and specifications shall meet with the director's approval.

(9) Any other conditions the director determines necessary.

(F) In accordance with section 5501.031 of the Revised Code, to further efforts to promote energy conservation and energy efficiency, the director may grant a lease, easement, or license in a transportation facility to a utility service provider that has received its certificate from the Ohio power siting board or appropriate local entity for construction, placement, or operation of an alternative energy generating facility service provider as defined in section 4928.64 of the Revised Code. An interest granted under this division is subject to all of the following conditions:

(1) The transportation facility is owned in fee simple or in easement by this state at the time the lease, easement, or license is granted to the utility service provider.

(2) The lease, easement, or license shall be granted on a competitive basis in accordance with policies and procedures to be determined by the director. The policies and procedures may include provisions for master leases for multiple sites.

(3) The alternative energy generating facility shall be designed to provide energy for the department's transportation facilities with the potential for selling excess power on the power grid, as the director may determine is necessary for highway or other departmental purposes.

(4) The director shall require indemnity agreements in favor of the department as a condition of any lease, easement, or license granted under this division. Each indemnity agreement shall secure this state from liability for damages arising out of safety hazards, zoning, and any other matter of public interest the director considers necessary.

(5) The alternative energy service provider fully complies with any permit issued by the Ohio power siting board under Chapter 4906. of the Revised Code and complies with section 5515.01 of the Revised Code pertaining to land that is the subject of the lease, easement, or license.

(6) All plans and specifications shall meet with the director's approval.

(7) Any other conditions the director determines necessary.

(G) Money the department receives under divisions (E) and (F) of this section shall be deposited into the state treasury to the credit of the highway operating fund.

(H) A lease, easement, or license granted under division (E) or (F) of this section, and any telecommunications facility or alternative energy generating facility relating to such interest in a transportation facility, is hereby deemed to further the essential highway purpose of building and maintaining a safe, energy-efficient, and accessible transportation system.

Sec. 5531.09.  (A) The state infrastructure bank shall consist of the highway and transit infrastructure bank fund, the aviation infrastructure bank fund, the rail infrastructure bank fund, and the infrastructure bank obligations fund, and the new generation infrastructure bank funds, which are hereby created as funds of the state treasury, to be administered by the director of transportation and used for the purposes described in division (B) of this section. The highway and transit infrastructure bank fund, the aviation infrastructure bank fund, and the rail infrastructure bank fund shall consist of federal grants and awards or other assistance received by the state and eligible for deposit therein under applicable federal law, payments received by the department in connection with providing financial assistance for qualifying projects under division (B) of this section, and such other amounts as may be provided by law. The infrastructure bank obligations fund shall consist of such amounts of the proceeds of obligations issued under section 5531.10 of the Revised Code as the director of transportation determines with the advice of the director of budget and management; and such other amounts as may be provided by law. The new generation infrastructure bank funds shall consist of such other assistance received by the state as may be provided by law. The director of budget and management, upon the request of the director of transportation, may transfer amounts between the funds created in this division, except the infrastructure bank obligations fund. The investment earnings of each fund created by this division shall be credited to such fund.

(B)(1) The director of transportation shall use the state infrastructure bank, except the new generation infrastructure bank funds, to encourage public and private investment in transportation facilities that contribute to the multi-modal and intermodal transportation capabilities of the state, develop a variety of financing techniques designed to expand the availability of funding resources and to reduce direct state costs, maximize private and local participation in financing projects, and improve the efficiency of the state transportation system by using and developing the particular advantages of each transportation mode to the fullest extent. In furtherance of these purposes, the director shall use the state infrastructure bank to provide financial assistance to public or private entities for qualified projects. Such assistance shall be in the form of loans, loan guarantees, letters of credit, leases, lease-purchase agreements, interest rate subsidies, debt service reserves, and such other forms as the director determines to be appropriate. All fees, charges, rates of interest, payment schedules, security for, and other terms and conditions relating to such assistance shall be determined by the director.

(2) The director shall use the new generation infrastructure bank funds to encourage transportation innovation authorities created under Chapter 5539. of the Revised Code to invest in transportation facilities that contribute to the multi-modal and intermodal transportation capabilities of the state, develop a variety of financing techniques designed to expand the availability of funding resources and to reduce direct state costs, maximize transportation innovation authorities' participation in financing projects, and improve the efficiency of the state transportation system by using and developing the particular advantages of each transportation mode to the fullest extent. In furtherance of these purposes, the director shall use the new generation infrastructure bank funds to provide financial assistance to transportation innovation authorities for qualified projects. Such assistance shall be in the form of loans, loan guarantees, letters of credit, leases, lease-purchase agreements, interest rate subsidies, debt service reserves, and such other forms of assistance as the director determines to be appropriate. All fees, charges, rates of interest, payment schedules, security for, and other terms and conditions relating to such assistance shall be determined by the director.

(C) The director of transportation shall adopt rules establishing guidelines necessary for the implementation and exercise of the authority granted by this section, including rules for receiving, reviewing, evaluating, and selecting projects for which financial assistance may be approved.

(D) As used in this section and in section 5531.10 of the Revised Code, "qualified project" means any public or private transportation project as determined by the director of transportation, including, without limitation, planning, environmental impact studies, engineering, construction, reconstruction, resurfacing, restoring, rehabilitation, or replacement of public or private transportation facilities within the state, studying the feasibility thereof, and the acquisition of real or personal property or interests therein; any highway, public transit, aviation, rail, or other transportation project eligible for financing or aid under any federal or state program; and any project involving the maintaining, repairing, improving, or construction of any public or private highway, road, street, parkway, public transit, aviation, or rail project, and any related rights-of-way, bridges, tunnels, railroad-highway crossings, drainage structures, signs, guardrails, or protective structures.

(E) The general assembly finds that state infrastructure projects, as defined in division (A)(8) of section 5531.10 of the Revised Code, and the state infrastructure bank, will materially contribute to the economic revitalization of areas of the state and result in improving the economic welfare of all the people of the state. Accordingly, it is declared to be the public purpose of the state, through operations under sections 5531.09 and 5531.10 of the Revised Code, and other applicable laws adopted pursuant to Section 13 of Article VIII, Ohio Constitution, and other authority vested in the general assembly, to assist in and facilitate the purposes set forth in division (B) of section 5531.10 of the Revised Code, and to assist and cooperate with any governmental agency in achieving such purposes.

Sec. 5531.18.  The director of transportation shall establish a procedure whereby a political subdivision or other governmental agency or agencies may submit a written application to the director in accordance with Chapter 5539. of the Revised Code requesting the department of transportation to construct and operate a toll project within the boundaries of the subdivision, agency, or agencies making the request. The procedure shall include a requirement that the director send a written reply to the subdivision, agency, or agencies explaining the disposition of the request. The procedure established pursuant to this section shall not become effective unless it is approved by the Ohio transportation finance commission created under section 5531.12 of the Revised Code.

Sec. 5539.01. As used in this chapter:

"Governmental agency" means a county, township, or municipal corporation, and any agency thereof; any other political subdivision; any county transit system, regional transit authority, or regional transit commission created under Chapter 306. of the Revised Code; any new community authority organized under Chapter 349. of the Revised Code; one or more municipal corporations and one or more townships acting pursuant to a cooperative economic development agreement entered into under section 701.07 of the Revised Code; any joint economic development zone or joint economic development district organized under Chapter 715. of the Revised Code; any metropolitan planning organization; any port authority created under Chapter 4582. of the Revised Code; any transportation improvement district created under Chapter 5540. of the Revised Code; the Ohio rail development commission created under Chapter 4981. of the Revised Code; any other public corporation, agency, or commission established pursuant to state law; and any combination of the above.

"Multimodal and intermodal transportation system" means a system of roads and highways, rail lines, water ports, airports, bicycle paths, pedestrian walkways, or public transit systems, including connections between them, and related facilities.

"Passenger rail service" means passenger railroad service that connects two or more urbanized areas.

"Public transit system" means a system of local transportation of passengers and their incidental baggage on scheduled routes by means of a conveyance on an individual passenger fare-paying basis, and excluding transportation by a sightseeing bus, taxi, or any vehicle not operated on a scheduled route basis.

"Transportation innovation authority" means a body corporate and politic created pursuant to section 5539.03 of the Revised Code.

"Transportation project" means a project constructed, improved, operated, or managed under this chapter, including the construction, reconstruction, alteration, repair, improvement, operation, or management of any road, highway, bridge, or other transportation facility as defined in section 5501.01 of the Revised Code; any multimodal and intermodal systems; any public transit system; and any freight or intercity passenger rail system.

Sec. 5539.02. (A) The director of transportation is hereby authorized to establish a transportation innovation authority pilot project and shall approve not more than four transportation innovation authorities pursuant to division (B) of section 5539.03 of the Revised Code and shall report to the general assembly pursuant to division (C) of section 5539.07 of the Revised Code.

(B) The purpose of a transportation innovation authority established under this chapter is to foster and encourage the investment of public and private resources in the planning and implementation of innovative transportation projects to enhance the efficiency of the state's transportation system, enhance intermodal and multimodal systems to streamline the transportation of goods and persons, and encourage the improvement and development of public transit systems and intercity passenger rail service throughout the state. A transportation innovation authority shall assist governmental agencies in the identification of transportation needs that will foster growth and economic development in the region conducive to the transportation projects and shall assist in funding priority projects through cooperative arrangements involving public and private partnerships.

Sec. 5539.03. (A) Subject to approval by the director of transportation under division (B) of this section, any governmental agency, by resolution, ordinance, or other formal action by the appropriate legislative authority of such governmental agency, as applicable, may enter into an agreement with one or more other governmental agencies proposing to form a transportation innovation authority. The agreement between all participating governmental agencies, at a minimum, shall do all of the following:

(1) Identify all members of the authority;

(2) Designate the geographical area to be included in the jurisdiction of the authority;

(3) Specify the role and voting rights of the authority's board of directors from among the governmental agencies that are not counties, townships, or municipal corporations;

(4) Identify the transportation needs of the geographical area covered by the authority and define the transportation projects necessary to meet such needs;

(5) Provide for the planning, construction, operation, and maintenance of transportation projects proposed to be undertaken by the authority;

(6) Establish the dates for the existence and operation of the authority, which shall include a date of creation, the means for determining when the authority shall cease to exist, how the authority may expand its membership, and how a member may end its membership;

(7) Allow for and establish the terms of funding arrangements for the identified projects through any combination of funding sources authorized by this chapter or otherwise authorized by law;

(8) Subject to section 5539.031 of the Revised Code, require all political subdivisions participating as members of the authority to agree, in a time and manner specified in the agreement, to adopt zoning and land use policies and laws that are consistent with and that complement the transportation innovation authority priorities, objectives, and identified projects;

(9) Designate how its members shall provide the authority with any clerical, legal, and other staff assistance necessary to implement the agreement and pay for copying, mailing, and any other such expenses incurred by the authority in meeting the requirements imposed by sections 5539.01 to 5539.11 of the Revised Code;

(10) Specify the process by which the boards or legislative authorities of member governmental agencies may ratify a transportation project and the funding thereof as recommended by the authority. The ratification process may specify the adoption by all governmental agencies, a majority of governmental agencies, the governmental agencies of the most populous jurisdictions participating in the authority, or other acceptable process.

(B) Upon entering into an agreement, a proposed transportation innovation authority shall provide a copy of the agreement to the director of transportation, who shall approve or disapprove the agreement or suggest modifications to ensure consistency with the purposes of this chapter. Each member shall be notified of the director's approval, disapproval, or suggested modifications, with a deadline for any action that is required to be taken. If the authority has not adopted an agreement on or before the deadline, the authority shall cease to exist.

(C) A transportation innovation authority is deemed to be created upon the adoption by each participating governmental agency, acting by resolution, ordinance, or other formal action, as applicable, of an agreement approved by the director.

Sec. 5539.031.  (A) As soon as practicable after approval of an agreement under division (C) of section 5539.03 of the Revised Code and before engaging in any transportation project development, a transportation innovation authority shall develop a proposed land use plan for the area within the authority that includes recommended changes to current land use and zoning policies and other measures that promote land use consistent with the authority's proposed transportation projects. The proposed land use plan shall be submitted to each member governmental agency and the department of transportation. The plan shall include a document that specifically details the changes required of each such governmental agency to that agency's current land use and zoning policies. Upon receipt of the proposed land use plan, the appropriate legislative authority of the governmental agency, in the time and manner specified in the agreement adopted under section 5539.03 of the Revised Code, shall express its intent to take action to change its land use policies and regulations.

(B) Upon approval of a proposed land use plan, the authority shall develop a transportation project, including proposed funding sources for the project. The authority shall submit a draft of its proposed plan to the board of directors for approval. If approved, the members of the authority shall submit the proposed plan to their respective boards or legislative authorities, which shall take appropriate action to ratify or disapprove the proposed plan. Each such board or legislative authority shall notify the transportation innovation authority in writing of its ratification or disapproval of the proposed plan.

Sec. 5539.04. (A) A transportation innovation authority shall be governed by a board of directors, the membership of which shall be established by the governmental agencies comprising the authority; provided, that there shall be an equal number of board members representing each governmental agency comprising the authority. Each member of the board serves at the pleasure of the member's appointing authority, and the appointing authority may remove an appointee the appointing authority has appointed at any time and for any reason. Members of the board shall receive no compensation but may be reimbursed for their necessary and actual expenses incurred in the course of duties as board members. The affirmative vote of a majority of the board is necessary to transact business.

(B) An authority shall adopt bylaws for the regulation of its affairs and the conduct of its business and shall provide for public notice and opportunity for public comment on the identification of transportation projects and plans for funding the construction, operation, and maintenance of such projects.

(C) A transportation innovation authority is a body both corporate and politic. The exercise by it of the powers conferred by this chapter are considered to be essential governmental functions and shall be governed by all applicable state and federal laws in the planning, construction, operation, and maintenance of transportation projects proposed to be undertaken by the authority.

(D) Membership on the board of directors of a transportation innovation authority is not the holding of a public office or employment within the meaning of any section of the Revised Code or any municipal charter provision prohibiting the holding of other public office or employment. Membership on such a board is not a direct or indirect interest in an agreement or expenditure of money by a governmental agency with which a member may be affiliated. Notwithstanding any provision of law or a municipal charter to the contrary, no member of a board of directors of a transportation innovation authority shall forfeit or be disqualified from holding any public office or employment by reason of membership on the board.

(E) The board of directors of a transportation innovation authority is a public body for the purposes of section 121.22 of the Revised Code. Chapter 2744. of the Revised Code applies to such a board and the transportation innovation authority.

Sec. 5539.05. A transportation innovation authority may:

(A) Sue and be sued in its own name, plead, and be impleaded; provided, any actions against the authority shall be brought in the court of common pleas in the county in which the authority is headquartered or in the court of common pleas of the county in which the cause of action arose, and all summonses and notices of any kind shall be served on the authority by leaving a copy thereof at its headquarters;

(B) Purchase, construct, maintain, repair, sell, exchange, police, operate, or lease a project as defined by this chapter;

(C) Make and enter into all contracts and agreements necessary or incidental to the performance of its functions in designing, planning, and implementing a project and the execution of its powers under this chapter;

(D) Employ, retain, or contract for the services of consultants, engineers, construction and accounting experts, financial advisers, trustees, attorneys, or other employees, independent contractors, or agents as are necessary in its judgment for the exercise of its powers and performance of its duties under this chapter;

(E) Acquire, hold, and dispose of property in the exercise of its powers and the performance of its duties under this chapter;

(F) Direct its agents or employees, when properly identified in writing and after reasonable notice, to enter upon lands within its jurisdiction to make surveys and examinations preliminary to the location and construction of projects for the authority, without liability of the authority or its agents or employees except for actual damages arising solely out of such entry;

(G) Enter into contracts, agreements, or any other partnerships with private entities, where appropriate, to streamline and enhance the planning and implementation and funding of identified projects;

(H) Do all acts necessary and proper to carry out the powers expressly granted in this chapter.

Sec. 5539.06. The board and members of a transportation innovation authority created under this chapter shall encourage the participation of all political subdivisions within the geographic jurisdiction of the authority. An authority shall invite the participation of any new community authority, county transit system, regional transit authority, regional transit commission, joint economic development zone or joint economic development district, transportation improvement district, port authority, or metropolitan planning organization whose jurisdiction is within or substantially within the jurisdiction identified by an authority.

Sec. 5539.07. (A) The director of transportation may provide grants for planning and project development, funding from the state infrastructure bank under section 5531.09 of the Revised Code, and support for the priority transportation projects identified by a transportation innovation authority.

(B) In accordance with Chapter 119. of the Revised Code, the director may adopt rules to assist in the creation and operation of transportation innovation authorities consistent with the purposes of this chapter.

(C) The director shall issue an annual report to the general assembly summarizing the effectiveness of the authorities created under this chapter in identifying and funding the transportation needs of the state.

Sec. 5539.08. (A) A transportation innovation authority shall hold and apply such funds as it considers necessary to carry out the powers and duties conferred by this chapter and as set forth in the agreement adopted by the authority.

(B) An authority shall adopt an operating budget to hire employees, contract for services, and conduct normal business functions. All funding for such operating budget shall be paid from contributions from each governmental agency constituting the authority. No state funds shall be used for the operating budget of an authority.

(C) An authority shall submit an annual audited financial report to the general assembly and the director of transportation setting forth all sources and uses of funds obtained or otherwise generated by the authority and a detailed breakdown of the different classes of expenditures made by the authority during each calendar year of operation. Such report also shall contain two-year budget projections for the operating expenses for the authority and specific transportation project funding.

Sec. 5539.09. (A) A transportation innovation authority may acquire by purchase, lease, lease-purchase, lease with option to purchase, or otherwise, and in such manner and for such consideration as it considers proper, any public or private property necessary, convenient, or proper for the construction, maintenance, repair, or operation of a transportation project. Title to real and personal property shall be held in the name of the authority. Except as otherwise agreed to by the owner, full compensation shall be paid for public property taken.

(B) A governmental agency may exercise the power of eminent domain to acquire property necessary for or in connection with a transportation project, but only to the extent such power is granted to the governmental agency individually. In any proceedings for appropriation, the procedure to be followed shall be in accordance with that provided in sections 163.01 to 163.22 of the Revised Code or as otherwise provided by law for the governmental agency. Nothing in this chapter shall be construed as permitting a transportation innovation authority to exercise the power of eminent domain as a collective entity to acquire property necessary for or in connection with a transportation project.

(C) This section does not authorize an authority to take or disturb property or facilities belonging to any public utility or to a common carrier engaged in interstate commerce if the property or facilities are required for the proper and convenient operation of the public utility or common carrier unless provision is made for the restoration, relocation, replication, or duplication of the property or facilities elsewhere at the sole cost of the authority.

(D) Except as otherwise provided in this chapter, disposition of real property shall be by sale, lease-purchase agreement, lease with option to purchase, or otherwise in such manner and for such consideration as the authority determines if to a governmental agency or to a private entity involved in the transportation project funding, and otherwise in the manner provided in section 5501.45 of the Revised Code for the disposition of property by the director of transportation. Disposition of personal property shall be in such manner and for such consideration as the authority determines.

Sec. 5539.10. The board of directors of a transportation innovation authority may acquire real property in fee simple in the name of the authority in connection with, but in excess of that needed for, a project, by any method other than appropriation and hold the property for such period of time as the board determines. All right, title, and interest of the authority in the property may be sold at public auction or otherwise, as the board considers in the best interests of the authority, but in no event shall the property be sold for less than two-thirds of its appraised value. Sale at public auction shall be undertaken only after the board advertises the sale in a newspaper of general circulation in the area of the jurisdiction of the authority for at least two weeks prior to the date set for the sale.

Sec. 5539.11. (A) A governmental agency may fund or assist in funding a transportation project as set forth in this chapter using the authority granted to any governmental agency participating as a member of a transportation innovation authority, but only to the extent such power is granted to the governmental agency individually. Nothing in this section shall be construed as permitting a transportation innovation authority or granting such authority the right to levy any fee, assessment, payment, or tax as a collective entity.

(B) Projects identified by a transportation innovation authority under this chapter may be funded through any combination of revenue generated under the authority granted by this chapter or under the authority granted to any governmental agency participating as a member of an authority. Subject to the following limitations, such funding sources may include special fees and assessments levied by a governmental agency, fair share payments, payments in lieu of property tax on improvements, cash payments by private participants, dedicated portions of local sales tax and local income tax receipts, loans or grants from local, state, or federal sources, implementation of tolling arrangements or other charges as authorized and governed by section 5531.12 of the Revised Code, or any other revenue raising or tax incentive authority available to an authority or any governmental agency acting as a member of an authority:

(1) A transportation innovation authority may participate in the levy of special assessments by a governmental agency to assist in the payment of costs for the construction, reconstruction, alteration, repair, improvement, operation, or management of an identified transportation project if the authority determines that the project will benefit the geographic area where the project will be constructed, reconstructed, altered, repaired, improved, operated, or maintained.

(2) When it is determined that a project will benefit both a single political subdivision and the jurisdiction covered by an authority as a whole, any governmental agency participating as a member of a transportation innovation authority may exercise its taxing authority on income, sales, or property under Title LVII of the Revised Code, or provide for payments in lieu of property tax on improvements, to benefit the entire jurisdiction covered by the authority.

(3) A transportation innovation authority may obtain loans or grants from local, state, or federal sources. Loans or grants from federal or state sources may be used for funding transportation projects and may not be applied to the operating expenses of an authority.

(4) An authority may issue bonds to pay for all or part of the cost of an identified project.

(5) When it is determined that a project will benefit both a single political subdivision and the jurisdiction covered by an authority as a whole, each governmental agency participating as a member of the authority may issue bonds for a portion of the cost of any project if Chapter 133. of the Revised Code would authorize the issuance of those bonds as if the governmental agency alone were undertaking the project, subject to the same conditions and restrictions.

(6) Any governmental agency participating as a member of an authority may appropriate money available to the agency to pay costs incurred by the authority in the exercise of its powers and duties.

(7) An authority may enter into agreements with private entities to assist with the construction, improvement, operation, or management of transportation projects. Such agreements may include fair share payments to be made by the private entities to fund the projects.

(8) An authority may charge tolls or fees for the use of its transportation projects or facilities pursuant to section 5531.12 of the Revised Code. The authority may retain a portion of the fees charged as its administrative fee, provided the amount of the fee is reviewed and approved by the director of transportation on an annual basis. All other revenues shall be utilized to support construction, improvement, repair, maintenance, administration, and operation costs for transportation projects within the geographical jurisdiction of the authority. All projects for which a toll or fee is proposed to be charged shall be subject to the review and approval of the transportation review advisory council in accordance with Chapter 5512. of the Revised Code.

(C) The exercise of the powers granted by this chapter is in all respects for the benefit of the people of the state, for the improvement of their safety, convenience, and welfare, and for the enhancement of their residential, agricultural, recreational, economic, commercial, and industrial opportunities and is a public purpose. As the operation and maintenance of transportation innovation projects constitute the performance of essential governmental functions, a transportation innovation authority shall not be required to pay any taxes or assessments upon any transportation innovation project, or upon any property acquired or used by the authority under this chapter, or upon the income therefrom. The transfer to or from the transportation innovation authority of title or possession of any transportation innovation project, part thereof, or item included or to be included in any such project, is not subject to the taxes levied pursuant to Chapters 5739. and 5741. of the Revised Code, and any bonds and notes, their transfer, and the income therefrom, including any gain made on the sale thereof, shall at all times be free from taxation within the state.

Section 2.  That existing sections 5501.03, 5501.311, 5531.09, and 5531.18 of the Revised Code are hereby repealed.