Bill Text: OH SB218 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To authorize the creation of transportation innovation authorities by specified governmental entities and to establish the powers and duties of such authorities.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2013-10-29 - To Transportation [SB218 Detail]

Download: Ohio-2013-SB218-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

S. B. No. 218

Senator Cafaro 

Cosponsors: Senators Tavares, Turner 

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A BILL

To amend sections 5501.03, 5501.311, 5531.09, and

1

5531.18 and to enact sections 5539.01, 5539.02,

2

5539.03, 5539.031, 5539.04, 5539.05, 5539.06,

3

5539.07, 5539.08, 5539.09, 5539.10, and 5539.11 of

4

the Revised Code to authorize the creation of

5

transportation innovation authorities by specified

6

governmental entities and to establish the powers

7

and duties of such authorities.

8

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 5501.03, 5501.311, 5531.09, and	9
5531.18 be amended and sections 5539.01, 5539.02, 5539.03,	10
5539.031, 5539.04, 5539.05, 5539.06, 5539.07, 5539.08, 5539.09,	11
5539.10, and 5539.11 of the Revised Code be enacted to read as	12
follows:	13

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

14

(1) Exercise and perform such other duties, powers, and	15
functions as are conferred by law on the director, the department,	16
the assistant directors, the deputy directors, or on the divisions	17
of the department;	18

(2) Coordinate and develop, in cooperation with local,	19
regional, state, and federal planning agencies and authorities,	20
comprehensive and balanced state policy and planning to meet	21
present and future needs for adequate transportation facilities in	22
this state, including recommendations for adequate funding of the	23
implementation of such planning;	24

(3) Coordinate its activities with those of other appropriate	25
state departments, public agencies, and authorities, and enter	26
into any contracts with such departments, agencies, and	27
authorities as may be necessary to carry out its duties, powers,	28
and functions;	29

(4) Cooperate with and assist the public utilities commission	30
in the commission's administration of sections 4907.47 to 4907.476	31
of the Revised Code, particularly with respect to the federal	32
highway administration;	33

(5) Cooperate with and assist the Ohio power siting board in	34
the board's administration of Chapter 4906. of the Revised Code;	35

(6) Give particular consideration to the development of	36
policy and planning for public transportation facilities, and to	37
the coordination of associated activities relating thereto, as	38
prescribed under divisions (A)(2) and (3) of this section;	39

(7) Conduct, in cooperation with the Ohio legislative service	40
commission, any studies or comparisons of state traffic laws and	41
local traffic ordinances with model laws and ordinances that may	42
be required to meet program standards adopted by the United States	43
department of transportation pursuant to the "Highway Safety Act	44
of 1966," 80 Stat. 731, U.S.C.A. 401;	45

(8) Prepare, print, distribute, and advertise books, maps,	46
pamphlets, and other information that, in the judgment of the	47
director, will inform the public and other governmental	48
departments, agencies, and authorities as to the duties, powers,	49
and functions of the department;	50

(9) In its research and development program, consider	51
technologies for improving safety, mobility, aviation and aviation	52
education, transportation facilities, roadways, including	53
construction techniques and materials to prolong project life,	54
being used or developed by other states that have geographic,	55
geologic, or climatic features similar to this state's, and	56
collaborate with those states in that development.	57

(B) Nothing contained in this section shall be held to in any	58
manner affect, limit, restrict, or otherwise interfere with the	59
exercise of powers relating to transportation facilities by	60
appropriate agencies of the federal government, or by counties,	61
municipal corporations, or other political subdivisions or special	62
districts in this state authorized by law to exercise such powers.	63

(C) The department may use all appropriate sources of revenue	64
to assist in the development and implementation of rail service as	65
defined by division (C) of section 4981.01 of the Revised Code.	66

(D) The director of transportation may enter into contracts	67
with public agencies including political subdivisions, other state	68
agencies, boards, commissions, regional transit authorities,	69
county transit boards, and port authorities, transportation	70
innovation authorities, and any corporation organized under the	71
laws of Ohio, to administer the design, qualification of bidders,	72
competitive bid letting, construction inspection, research, and	73
acceptance of any projects or transportation facilities	74
administered by the department, provided the administration of	75
such projects or transportation facilities is performed in	76
accordance with all applicable state and federal laws and	77
regulations with oversight by the department.	78

(E) The director may enter into cooperative or contractual	79
agreements with any individual, organization, or business related	80
to the creation or promotion of a traveler information program.	81
The traveler information program shall provide real-time traffic	82
conditions and travel time information to travelers by telephone,	83
text message, internet, or other similar means at no cost to the	84
traveler. The director may contract with a program manager for the	85
traveler information program. The program manager shall be	86
responsible for all costs associated with the development and	87
operation of the traveler information program. The compensation	88
due to a program manager or vendor under any of these agreements	89
may include deferred compensation in an amount determined by the	90
director. Excess revenue shall be remitted to the department for	91
deposit into the highway operating fund.	92

(F) Any materials or data submitted to, made available to, or	93
received by the director of transportation, to the extent that the	94
materials or data consist of trade secrets, as defined in section	95
1333.61 of the Revised Code, or commercial or financial	96
information, are confidential and are not public records for the	97
purposes of section 149.43 of the Revised Code.	98

Sec. 5501.311.  (A) Notwithstanding sections 123.01 and	99
127.16 of the Revised Code the director of transportation may	100
lease or lease-purchase all or any part of a transportation	101
facility to or from one or more persons, one or more governmental	102
agencies, a transportation improvement district, a transportation	103
innovation authority, or any combination thereof, and may grant	104
leases, easements, or licenses for lands under the control of the	105
department of transportation. The director may adopt rules	106
necessary to give effect to this section.	107

(B) Plans and specifications for the construction of a	108
transportation facility under a lease or lease-purchase agreement	109
are subject to approval of the director and must meet or exceed	110
all applicable standards of the department.	111

(C) Any lease or lease-purchase agreement under which the	112
department is the lessee shall be for a period not exceeding the	113
then current two-year period for which appropriations have been	114
made by the general assembly to the department, and such agreement	115
may contain such other terms as the department and the other	116
parties thereto agree, notwithstanding any other provision of law,	117
including provisions that rental payments in amounts sufficient to	118
pay bond service charges payable during the current two-year lease	119
term shall be an absolute and unconditional obligation of the	120
department independent of all other duties under the agreement	121
without set-off or deduction or any other similar rights or	122
defenses. Any such agreement may provide for renewal of the	123
agreement at the end of each term for another term, not exceeding	124
two years, provided that no renewal shall be effective until the	125
effective date of an appropriation enacted by the general assembly	126
from which the department may lawfully pay rentals under such	127
agreement. Any such agreement may include, without limitation, any	128
agreement by the department with respect to any costs of	129
transportation facilities to be included prior to acquisition and	130
construction of such transportation facilities. Any such agreement	131
shall not constitute a debt or pledge of the faith and credit of	132
the state, or of any political subdivision of the state, and the	133
lessor shall have no right to have taxes or excises levied by the	134
general assembly, or the taxing authority of any political	135
subdivision of the state, for the payment of rentals thereunder.	136
Any such agreement shall contain a statement to that effect.	137

(D) A municipal corporation, township, or county may use	138
service payments in lieu of taxes credited to special funds or	139
accounts pursuant to sections 5709.43, 5709.75, and 5709.80 of the	140
Revised Code to provide its contribution to the cost of a	141
transportation facility, provided such facility was among the	142
purposes for which such service payments were authorized. The	143
contribution may be in the form of a lump sum or periodic	144
payments.	145

(E) Pursuant to the "Telecommunications Act of 1996," 110	146
Stat. 152, 47 U.S.C. 332 note, the director may grant a lease,	147
easement, or license in a transportation facility to a	148
telecommunications service provider for construction, placement,	149
or operation of a telecommunications facility. An interest granted	150
under this division is subject to all of the following conditions:	151

(1) The transportation facility is owned in fee simple or	152
easement by this state at the time the lease, easement, or license	153
is granted to the telecommunications provider.	154

(2) The lease, easement, or license shall be granted on a	155
competitive basis in accordance with policies and procedures to be	156
determined by the director. The policies and procedures may	157
include provisions for master leases for multiple sites.	158

(3) The telecommunications facility shall be designed to	159
accommodate the state's multi-agency radio communication system,	160
the intelligent transportation system, and the department's	161
communication system as the director may determine is necessary	162
for highway or other departmental purposes.	163

(4) The telecommunications facility shall be designed to	164
accommodate such additional telecommunications equipment as may	165
feasibly be co-located thereon as determined in the discretion of	166
the director.	167

(5) The telecommunications service providers awarded the	168
lease, easement, or license, agree to permit other	169
telecommunications service providers to co-locate on the	170
telecommunications facility, and agree to the terms and conditions	171
of the co-location as determined in the discretion of the	172
director.	173

(6) The director shall require indemnity agreements in favor	174
of the department as a condition of any lease, easement, or	175
license granted under this division. Each indemnity agreement	176
shall secure this state and its agents from liability for damages	177
arising out of safety hazards, zoning, and any other matter of	178
public interest the director considers necessary.	179

(7) The telecommunications service provider fully complies	180
with any permit issued under section 5515.01 of the Revised Code	181
pertaining to land that is the subject of the lease, easement, or	182
license.	183

(8) All plans and specifications shall meet with the	184
director's approval.	185

(9) Any other conditions the director determines necessary.

186

(F) In accordance with section 5501.031 of the Revised Code,	187
to further efforts to promote energy conservation and energy	188
efficiency, the director may grant a lease, easement, or license	189
in a transportation facility to a utility service provider that	190
has received its certificate from the Ohio power siting board or	191
appropriate local entity for construction, placement, or operation	192
of an alternative energy generating facility service provider as	193
defined in section 4928.64 of the Revised Code. An interest	194
granted under this division is subject to all of the following	195
conditions:	196

(1) The transportation facility is owned in fee simple or in	197
easement by this state at the time the lease, easement, or license	198
is granted to the utility service provider.	199

(2) The lease, easement, or license shall be granted on a	200
competitive basis in accordance with policies and procedures to be	201
determined by the director. The policies and procedures may	202
include provisions for master leases for multiple sites.	203

(3) The alternative energy generating facility shall be	204
designed to provide energy for the department's transportation	205
facilities with the potential for selling excess power on the	206
power grid, as the director may determine is necessary for highway	207
or other departmental purposes.	208

(4) The director shall require indemnity agreements in favor	209
of the department as a condition of any lease, easement, or	210
license granted under this division. Each indemnity agreement	211
shall secure this state from liability for damages arising out of	212
safety hazards, zoning, and any other matter of public interest	213
the director considers necessary.	214

(5) The alternative energy service provider fully complies	215
with any permit issued by the Ohio power siting board under	216
Chapter 4906. of the Revised Code and complies with section	217
5515.01 of the Revised Code pertaining to land that is the subject	218
of the lease, easement, or license.	219

(6) All plans and specifications shall meet with the	220
director's approval.	221

(7) Any other conditions the director determines necessary.

222

(G) Money the department receives under this section shall be	223
deposited into the state treasury to the credit of the highway	224
operating fund.	225

(H) A lease, easement, or license granted under division (E)	226
or (F) of this section, and any telecommunications facility or	227
alternative energy generating facility relating to such interest	228
in a transportation facility, is hereby deemed to further the	229
essential highway purpose of building and maintaining a safe,	230
energy-efficient, and accessible transportation system.	231

Sec. 5531.09.  (A) The state infrastructure bank shall	232
consist of the highway and transit infrastructure bank fund, the	233
aviation infrastructure bank fund, the rail infrastructure bank	234
fund, and the infrastructure bank obligations fund, and the new	235
generation infrastructure bank funds, which are hereby created as	236
funds of the state treasury, to be administered by the director of	237
transportation and used for the purposes described in division	238
(B) of this section. The highway and transit infrastructure bank	239
fund, the aviation infrastructure bank fund, and the rail	240
infrastructure bank fund shall consist of federal grants and	241
awards or other assistance received by the state and eligible for	242
deposit therein under applicable federal law, payments received by	243
the department in connection with providing financial assistance	244
for qualifying projects under division (B) of this section, and	245
such other amounts as may be provided by law. The infrastructure	246
bank obligations fund shall consist of such amounts of the	247
proceeds of obligations issued under section 5531.10 of the	248
Revised Code as the director of transportation determines with the	249
advice of the director of budget and management; and such other	250
amounts as may be provided by law. The new generation	251
infrastructure bank funds shall consist of such other assistance	252
received by the state as may be provided by law. The director of	253
budget and management, upon the request of the director of	254
transportation, may transfer amounts between the funds created in	255
this division, except the infrastructure bank obligations fund.	256
The investment earnings of each fund created by this division	257
shall be credited to such fund.	258

(B)(1) The director of transportation shall use the state	259
infrastructure bank, except the new generation infrastructure bank	260
funds, to encourage public and private investment in	261
transportation facilities that contribute to the multi-modal and	262
intermodal transportation capabilities of the state, develop a	263
variety of financing techniques designed to expand the	264
availability of funding resources and to reduce direct state	265
costs, maximize private and local participation in financing	266
projects, and improve the efficiency of the state transportation	267
system by using and developing the particular advantages of each	268
transportation mode to the fullest extent. In furtherance of	269
these purposes, the director shall use the state infrastructure	270
bank to provide financial assistance to public or private	271
entities for qualified projects. Such assistance shall be in the	272
form of loans, loan guarantees, letters of credit, leases,	273
lease-purchase agreements, interest rate subsidies, debt service	274
reserves, and such other forms as the director determines to be	275
appropriate. All fees, charges, rates of interest, payment	276
schedules, security for, and other terms and conditions relating	277
to such assistance shall be determined by the director.	278

(2) The director shall use the new generation infrastructure	279
bank funds to encourage transportation innovation authorities	280
created under Chapter 5539. of the Revised Code to invest in	281
transportation facilities that contribute to the multi-modal and	282
intermodal transportation capabilities of the state, develop a	283
variety of financing techniques designed to expand the	284
availability of funding resources and to reduce direct state	285
costs, maximize transportation innovation authorities'	286
participation in financing projects, and improve the efficiency of	287
the state transportation system by using and developing the	288
particular advantages of each transportation mode to the fullest	289
extent. In furtherance of these purposes, the director shall use	290
the new generation infrastructure bank funds to provide financial	291
assistance to transportation innovation authorities for qualified	292
projects. Such assistance shall be in the form of loans, loan	293
guarantees, letters of credit, leases, lease-purchase agreements,	294
interest rate subsidies, debt service reserves, and such other	295
forms of assistance as the director determines to be appropriate.	296
All fees, charges, rates of interest, payment schedules, security	297
for, and other terms and conditions relating to such assistance	298
shall be determined by the director.	299

(C) The director of transportation shall adopt rules	300
establishing guidelines necessary for the implementation and	301
exercise of the authority granted by this section, including rules	302
for receiving, reviewing, evaluating, and selecting projects for	303
which financial assistance may be approved.	304

(D) As used in this section and in section 5531.10 of the	305
Revised Code, "qualified project" means any public or private	306
transportation project as determined by the director of	307
transportation, including, without limitation, planning,	308
environmental impact studies, engineering, construction,	309
reconstruction, resurfacing, restoring, rehabilitation, or	310
replacement of public or private transportation facilities within	311
the state, studying the feasibility thereof, and the acquisition	312
of real or personal property or interests therein; any highway,	313
public transit, aviation, rail, or other transportation project	314
eligible for financing or aid under any federal or state program;	315
and any project involving the maintaining, repairing, improving,	316
or construction of any public or private highway, road, street,	317
parkway, public transit, aviation, or rail project, and any	318
related rights-of-way, bridges, tunnels, railroad-highway	319
crossings, drainage structures, signs, guardrails, or protective	320
structures.	321

(E) The general assembly finds that state infrastructure	322
projects, as defined in division (A)(8) of section 5531.10 of the	323
Revised Code, and the state infrastructure bank, will materially	324
contribute to the economic revitalization of areas of the state	325
and result in improving the economic welfare of all the people of	326
the state. Accordingly, it is declared to be the public purpose of	327
the state, through operations under sections 5531.09 and 5531.10	328
of the Revised Code, and other applicable laws adopted pursuant to	329
Section 13 of Article VIII, Ohio Constitution, and other authority	330
vested in the general assembly, to assist in and facilitate the	331
purposes set forth in division (B) of section 5531.10 of the	332
Revised Code, and to assist and cooperate with any governmental	333
agency in achieving such purposes.	334

Sec. 5531.18.  The director of transportation shall establish	335
a procedure whereby a political subdivision or other governmental	336
agency or agencies may submit a written application to the	337
director in accordance with Chapter 5539. of the Revised Code	338
requesting the department of transportation to construct and	339
operate a toll project within the boundaries of the subdivision,	340
agency, or agencies making the request. The procedure shall	341
include a requirement that the director send a written reply to	342
the subdivision, agency, or agencies explaining the disposition of	343
the request.	344

Sec. 5539.01. As used in this chapter:

345

"Governmental agency" means a county, township, or municipal	346
corporation, and any agency thereof; any other political	347
subdivision; any county transit system, regional transit	348
authority, or regional transit commission created under Chapter	349
306. of the Revised Code; any new community authority organized	350
under Chapter 349. of the Revised Code; one or more municipal	351
corporations and one or more townships acting pursuant to a	352
cooperative economic development agreement entered into under	353
section 701.07 of the Revised Code; any joint economic development	354
zone or joint economic development district organized under	355
Chapter 715. of the Revised Code; any metropolitan planning	356
organization; any port authority created under Chapter 4582. of	357
the Revised Code; any transportation improvement district created	358
under Chapter 5540. of the Revised Code; the Ohio rail development	359
commission created under Chapter 4981. of the Revised Code; any	360
other public corporation, agency, or commission established	361
pursuant to state law; and any combination of the above.	362

"Multimodal and intermodal transportation system" means a	363
system of roads and highways, rail lines, water ports, airports,	364
bicycle paths, pedestrian walkways, or public transit systems,	365
including connections between them, and related facilities.	366

"Passenger rail service" means passenger railroad service	367
that connects two or more urbanized areas.	368

"Public transit system" means a system of local	369
transportation of passengers and their incidental baggage on	370
scheduled routes by means of a conveyance on an individual	371
passenger fare-paying basis, and excluding transportation by a	372
sightseeing bus, taxi, or any vehicle not operated on a scheduled	373
route basis.	374

"Transportation innovation authority" means a body corporate	375
and politic created pursuant to section 5539.03 of the Revised	376
Code.	377

"Transportation project" means a project constructed,	378
improved, operated, or managed under this chapter, including the	379
construction, reconstruction, alteration, repair, improvement,	380
operation, or management of any road, highway, bridge, or other	381
transportation facility as defined in section 5501.01 of the	382
Revised Code; any multimodal and intermodal systems; any public	383
transit system; and any freight or intercity passenger rail	384
system.	385

Sec. 5539.02. (A) The director of transportation is hereby	386
authorized to establish a transportation innovation authority	387
pilot project and shall approve not more than four transportation	388
innovation authorities pursuant to division (B) of section 5539.03	389
of the Revised Code and shall report to the general assembly	390
pursuant to division (C) of section 5539.07 of the Revised Code.	391

(B) The purpose of a transportation innovation authority	392
established under this chapter is to foster and encourage the	393
investment of public and private resources in the planning and	394
implementation of innovative transportation projects to enhance	395
the efficiency of the state's transportation system, enhance	396
intermodal and multimodal systems to streamline the	397
transportation of goods and persons, and encourage the improvement	398
and development of public transit systems and intercity passenger	399
rail service throughout the state. A transportation innovation	400
authority shall assist governmental agencies in the identification	401
of transportation needs that will foster growth and economic	402
development in the region conducive to the transportation projects	403
and shall assist in funding priority projects through cooperative	404
arrangements involving public and private partnerships.	405

Sec. 5539.03. (A) Subject to approval by the director of	406
transportation under division (B) of this section, any	407
governmental agency, by resolution, ordinance, or other formal	408
action by the appropriate legislative authority of such	409
governmental agency, as applicable, may enter into an agreement	410
with one or more other governmental agencies proposing to form a	411
transportation innovation authority. The agreement between all	412
participating governmental agencies, at a minimum, shall do all of	413
the following:	414

(1) Identify all members of the authority;

415

(2) Designate the geographical area to be included in the	416
jurisdiction of the authority;	417

(3) Specify the role and voting rights of the authority's	418
board of directors from among the governmental agencies that are	419
not counties, townships, or municipal corporations;	420

(4) Identify the transportation needs of the geographical	421
area covered by the authority and define the transportation	422
projects necessary to meet such needs;	423

(5) Provide for the planning, construction, operation, and	424
maintenance of transportation projects proposed to be undertaken	425
by the authority;	426

(6) Establish the dates for the existence and operation of	427
the authority, which shall include a date of creation, the means	428
for determining when the authority shall cease to exist, how the	429
authority may expand its membership, and how a member may end its	430
membership;	431

(7) Allow for and establish the terms of funding arrangements	432
for the identified projects through any combination of funding	433
sources authorized by this chapter or otherwise authorized by law;	434

(8) Subject to section 5539.031 of the Revised Code, require	435
all political subdivisions participating as members of the	436
authority to agree, in a time and manner specified in the	437
agreement, to adopt zoning and land use policies and laws that	438
are consistent with and that complement the transportation	439
innovation authority priorities, objectives, and identified	440
projects;	441

(9) Designate how its members shall provide the authority	442
with any clerical, legal, and other staff assistance necessary to	443
implement the agreement and pay for copying, mailing, and any	444
other such expenses incurred by the authority in meeting the	445
requirements imposed by sections 5539.01 to 5539.11 of the Revised	446
Code;	447

(10) Specify the process by which the boards or legislative	448
authorities of member governmental agencies may ratify a	449
transportation project and the funding thereof as recommended by	450
the authority. The ratification process may specify the adoption	451
by all governmental agencies, a majority of governmental agencies,	452
the governmental agencies of the most populous jurisdictions	453
participating in the authority, or other acceptable process.	454

(B) Upon entering into an agreement, a proposed	455
transportation innovation authority shall provide a copy of the	456
agreement to the director of transportation, who shall approve or	457
disapprove the agreement or suggest modifications to ensure	458
consistency with the purposes of this chapter. Each member shall	459
be notified of the director's approval, disapproval, or suggested	460
modifications, with a deadline for any action that is required to	461
be taken. If the proposed authority has not adopted an agreement	462
on or before the deadline, it shall cease to exist as a proposed	463
authority.	464

(C) A transportation innovation authority is deemed to be	465
created upon the adoption by each participating governmental	466
agency, acting by resolution, ordinance, or other formal action,	467
as applicable, of an agreement approved by the director.	468

Sec. 5539.031.  (A) As soon as practicable after approval of	469
an agreement under division (C) of section 5539.03 of the Revised	470
Code and before engaging in any transportation project	471
development, a transportation innovation authority shall develop a	472
proposed land use plan for the area within the authority that	473
includes recommended changes to current land use and zoning	474
policies and other measures that promote land use consistent with	475
the authority's proposed transportation projects. The proposed	476
land use plan shall be submitted to each member governmental	477
agency and the department of transportation. The plan shall	478
include a document that specifically details the changes required	479
of each such governmental agency to that agency's current land use	480
and zoning policies. Upon receipt of the proposed land use plan,	481
the appropriate legislative authority of the governmental agency,	482
in the time and manner specified in the agreement adopted under	483
section 5539.03 of the Revised Code, shall express its intent to	484
take action to change its land use policies and regulations.	485

(B) Upon approval of a proposed land use plan, the authority	486
shall develop a transportation project, including proposed funding	487
sources for the project. The authority shall submit a draft of its	488
proposed plan to the board of directors for approval. If approved,	489
the members of the authority shall submit the proposed plan to	490
their respective boards or legislative authorities, which shall	491
take appropriate action to ratify or disapprove the proposed plan.	492
Each such board or legislative authority shall notify the	493
transportation innovation authority in writing of its ratification	494
or disapproval of the proposed plan.	495

Sec. 5539.04. (A) A transportation innovation authority shall	496
be governed by a board of directors, the membership of which shall	497
be established by the governmental agencies comprising the	498
authority; provided, that there shall be an equal number of board	499
members representing each governmental agency comprising the	500
authority. Each member of the board serves at the pleasure of the	501
member's appointing authority, and the appointing authority may	502
remove an appointee the appointing authority has appointed at any	503
time and for any reason. Members of the board shall receive no	504
compensation but may be reimbursed for their necessary and actual	505
expenses incurred in the course of duties as board members. The	506
affirmative vote of a majority of the board is necessary to	507
transact business.	508

(B) An authority shall adopt bylaws for the regulation of its	509
affairs and the conduct of its business and shall provide for	510
public notice and opportunity for public comment on the	511
identification of transportation projects and plans for funding	512
the construction, operation, and maintenance of such projects.	513

(C) A transportation innovation authority is a body both	514
corporate and politic. The exercise by it of the powers	515
conferred by this chapter are considered to be essential	516
governmental functions and shall be governed by all applicable	517
state and federal laws in the planning, construction, operation,	518
and maintenance of transportation projects proposed to be	519
undertaken by the authority.	520

(D) Membership on the board of directors of a transportation	521
innovation authority is not the holding of a public office or	522
employment within the meaning of any section of the Revised Code	523
or any municipal charter provision prohibiting the holding of	524
other public office or employment. Membership on such a board is	525
not a direct or indirect interest in an agreement or expenditure	526
of money by a governmental agency with which a member may be	527
affiliated. Notwithstanding any provision of law or a municipal	528
charter to the contrary, no member of a board of directors of a	529
transportation innovation authority shall forfeit or be	530
disqualified from holding any public office or employment by	531
reason of membership on the board.	532

(E) The board of directors of a transportation innovation	533
authority is a public body for the purposes of section 121.22 of	534
the Revised Code. Chapter 2744. of the Revised Code applies to	535
such a board and the transportation innovation authority.	536

Sec. 5539.05. A transportation innovation authority may:

537

(A) Sue and be sued in its own name, plead, and be impleaded;	538
provided, any actions against the authority shall be brought in	539
the court of common pleas in the county in which the authority is	540
headquartered or in the court of common pleas of the county in	541
which the cause of action arose, and all summonses and notices of	542
any kind shall be served on the authority by leaving a copy	543
thereof at its headquarters;	544

(B) Purchase, construct, maintain, repair, sell, exchange,	545
police, operate, or lease a project as defined by this chapter;	546

(C) Make and enter into all contracts and agreements	547
necessary or incidental to the performance of its functions in	548
designing, planning, and implementing a project and the execution	549
of its powers under this chapter;	550

(D) Employ, retain, or contract for the services of	551
consultants, engineers, construction and accounting experts,	552
financial advisers, trustees, attorneys, or other employees,	553
independent contractors, or agents as are necessary in its	554
judgment for the exercise of its powers and performance of its	555
duties under this chapter;	556

(E) Acquire, hold, and dispose of property in the exercise of	557
its powers and the performance of its duties under this chapter;	558

(F) Direct its agents or employees, when properly identified	559
in writing and after reasonable notice, to enter upon lands within	560
its jurisdiction to make surveys and examinations preliminary to	561
the location and construction of projects for the authority,	562
without liability of the authority or its agents or employees	563
except for actual damages arising solely out of such entry;	564

(G) Enter into contracts, agreements, or any other	565
partnerships with private entities, where appropriate, to	566
streamline and enhance the planning and implementation and funding	567
of identified projects;	568

(H) Do all acts necessary and proper to carry out the powers	569
expressly granted in this chapter.	570

Sec. 5539.06. The board and members of a transportation	571
innovation authority created under this chapter shall encourage	572
the participation of all political subdivisions within the	573
geographic jurisdiction of the authority. An authority shall	574
invite the participation of any new community authority, county	575
transit system, regional transit authority, regional transit	576
commission, joint economic development zone or joint economic	577
development district, transportation improvement district, port	578
authority, or metropolitan planning organization whose	579
jurisdiction is within or substantially within the jurisdiction	580
identified by an authority.	581

Sec. 5539.07. (A) The director of transportation may provide	582
grants for planning and project development, funding from the	583
state infrastructure bank under section 5531.09 of the Revised	584
Code, and support for the priority transportation projects	585
identified by a transportation innovation authority.	586

(B) In accordance with Chapter 119. of the Revised Code, the	587
director may adopt rules to assist in the creation and operation	588
of transportation innovation authorities consistent with the	589
purposes of this chapter.	590

(C) The director shall issue an annual report to the general	591
assembly summarizing the effectiveness of the authorities created	592
under this chapter in identifying and funding the transportation	593
needs of the state.	594

Sec. 5539.08. (A) A transportation innovation authority shall	595
hold and apply such funds as it considers necessary to carry out	596
the powers and duties conferred by this chapter and as set forth	597
in the agreement adopted by the authority.	598

(B) An authority shall adopt an operating budget to hire	599
employees, contract for services, and conduct normal business	600
functions. All funding for such operating budget shall be paid	601
from contributions from each governmental agency constituting the	602
authority. No state funds shall be used for the operating budget	603
of an authority.	604

(C) An authority shall submit an annual audited financial	605
report to the general assembly and the director of transportation	606
setting forth all sources and uses of funds obtained or otherwise	607
generated by the authority and a detailed breakdown of the	608
different classes of expenditures made by the authority during	609
each calendar year of operation. Such report also shall contain	610
two-year budget projections for the operating expenses for the	611
authority and specific transportation project funding.	612

Sec. 5539.09. (A) A transportation innovation authority may	613
acquire by purchase, lease, lease-purchase, lease with option to	614
purchase, or otherwise, and in such manner and for such	615
consideration as it considers proper, any public or private	616
property necessary, convenient, or proper for the construction,	617
maintenance, repair, or operation of a transportation project.	618
Title to real and personal property shall be held in the name of	619
the authority. Except as otherwise agreed to by the owner, full	620
compensation shall be paid for public property taken.	621

(B) A governmental agency may exercise the power of eminent	622
domain to acquire property necessary for or in connection with a	623
transportation project, but only to the extent such power is	624
granted to the governmental agency individually. In any	625
proceedings for appropriation, the procedure to be followed shall	626
be in accordance with that provided in sections 163.01 to 163.22	627
of the Revised Code or as otherwise provided by law for the	628
governmental agency. Nothing in this chapter shall be construed as	629
permitting a transportation innovation authority to exercise the	630
power of eminent domain as a collective entity to acquire property	631
necessary for or in connection with a transportation project.	632

(C) This section does not authorize an authority to take or	633
disturb property or facilities belonging to any public utility or	634
to a common carrier engaged in interstate commerce if the property	635
or facilities are required for the proper and convenient operation	636
of the public utility or common carrier unless provision is made	637
for the restoration, relocation, replication, or duplication of	638
the property or facilities elsewhere at the sole cost of the	639
authority.	640

(D) Except as otherwise provided in this chapter, disposition	641
of real property shall be by sale, lease-purchase agreement, lease	642
with option to purchase, or otherwise in such manner and for such	643
consideration as the authority determines if to a governmental	644
agency or to a private entity involved in the transportation	645
project funding, and otherwise in the manner provided in section	646
5501.45 of the Revised Code for the disposition of property by the	647
director of transportation. Disposition of personal property shall	648
be in such manner and for such consideration as the authority	649
determines.	650

Sec. 5539.10. The board of directors of a transportation	651
innovation authority may acquire real property in fee simple in	652
the name of the authority in connection with, but in excess of	653
that needed for, a project, by any method other than appropriation	654
and hold the property for such period of time as the board	655
determines. All right, title, and interest of the authority in the	656
property may be sold at public auction or otherwise, as the board	657
considers in the best interests of the authority, but in no event	658
shall the property be sold for less than two-thirds of its	659
appraised value. Sale at public auction shall be undertaken only	660
after the board advertises the sale in a newspaper of general	661
circulation in the area of the jurisdiction of the authority for	662
at least two weeks prior to the date set for the sale.	663

Sec. 5539.11. (A) A governmental agency may fund or assist in	664
funding a transportation project as set forth in this chapter	665
using the authority granted to any governmental agency	666
participating as a member of a transportation innovation	667
authority, but only to the extent such power is granted to the	668
governmental agency individually. Nothing in this section shall be	669
construed as permitting a transportation innovation authority or	670
granting such authority the right to levy any fee, assessment,	671
payment, or tax as a collective entity.	672

(B) Projects identified by a transportation innovation	673
authority under this chapter may be funded through any combination	674
of revenue generated under the authority granted by this chapter	675
or under the authority granted to any governmental agency	676
participating as a member of an authority. Subject to the	677
following limitations, such funding sources may include special	678
fees and assessments levied by a governmental agency, fair share	679
payments, payments in lieu of property tax on improvements, cash	680
payments by private participants, dedicated portions of local	681
sales tax and local income tax receipts, loans or grants from	682
local, state, or federal sources, implementation of tolling	683
arrangements or other charges as authorized and governed by	684
section 5531.12 of the Revised Code, or any other revenue raising	685
or tax incentive authority available to an authority or any	686
governmental agency acting as a member of an authority:	687

(1) A transportation innovation authority may participate in	688
the levy of special assessments by a governmental agency to assist	689
in the payment of costs for the construction, reconstruction,	690
alteration, repair, improvement, operation, or management of an	691
identified transportation project if the authority determines that	692
the project will benefit the geographic area where the project	693
will be constructed, reconstructed, altered, repaired, improved,	694
operated, or maintained.	695

(2) When it is determined that a project will benefit both a	696
single political subdivision and the jurisdiction covered by an	697
authority as a whole, any governmental agency participating as a	698
member of a transportation innovation authority may exercise its	699
taxing authority on income, sales, or property under Title LVII of	700
the Revised Code, or provide for payments in lieu of property tax	701
on improvements, to benefit the entire jurisdiction covered by the	702
authority.	703

(3) A transportation innovation authority may obtain loans or	704
grants from local, state, or federal sources. Loans or grants from	705
federal or state sources may be used for funding transportation	706
projects and may not be applied to the operating expenses of an	707
authority.	708

(4) An authority may issue bonds to pay for all or part of	709
the cost of an identified project.	710

(5) When it is determined that a project will benefit both a	711
single political subdivision and the jurisdiction covered by an	712
authority as a whole, each governmental agency participating as a	713
member of the authority may issue bonds for a portion of the cost	714
of any project if Chapter 133. of the Revised Code would authorize	715
the issuance of those bonds as if the governmental agency alone	716
were undertaking the project, subject to the same conditions and	717
restrictions.	718

(6) Any governmental agency participating as a member of an	719
authority may appropriate money available to the agency to pay	720
costs incurred by the authority in the exercise of its powers and	721
duties.	722

(7) An authority may enter into agreements with private	723
entities to assist with the construction, improvement, operation,	724
or management of transportation projects. Such agreements may	725
include fair share payments to be made by the private entities to	726
fund the projects.	727

(8) An authority may charge tolls or fees for the use of its	728
transportation projects or facilities pursuant to section 5531.12	729
of the Revised Code. The authority may retain a portion of the	730
fees charged as its administrative fee, provided the amount of the	731
fee is reviewed and approved by the director of transportation on	732
an annual basis. All other revenues shall be utilized to support	733
construction, improvement, repair, maintenance, administration,	734
and operation costs for transportation projects within the	735
geographical jurisdiction of the authority. All projects for which	736
a toll or fee is proposed to be charged shall be subject to the	737
review and approval of the transportation review advisory council	738
in accordance with Chapter 5512. of the Revised Code.	739

(C) The exercise of the powers granted by this chapter is in	740
all respects for the benefit of the people of the state, for the	741
improvement of their safety, convenience, and welfare, and for the	742
enhancement of their residential, agricultural, recreational,	743
economic, commercial, and industrial opportunities and is a public	744
purpose. As the operation and maintenance of transportation	745
innovation projects constitute the performance of essential	746
governmental functions, a transportation innovation authority	747
shall not be required to pay any taxes or assessments upon any	748
transportation innovation project, or upon any property acquired	749
or used by the authority under this chapter, or upon the income	750
therefrom. The transfer to or from the transportation innovation	751
authority of title or possession of any transportation innovation	752
project, part thereof, or item included or to be included in any	753
such project, is not subject to the taxes levied pursuant to	754
Chapters 5739. and 5741. of the Revised Code, and any bonds and	755
notes, their transfer, and the income therefrom, including any	756
gain made on the sale thereof, shall at all times be free from	757
taxation within the state.	758

Section 2.  That existing sections 5501.03, 5501.311,	759
5531.09, and 5531.18 of the Revised Code are hereby repealed.	760