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S. B. No. 121 As IntroducedAs Introduced
128th General Assembly | Regular Session | 2009-2010 |
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Cosponsors:
Senators Wagoner, Schuring, Strahorn, Morano, Kearney
A BILL
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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
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.
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