SB 281 — Allow county comm to award a franchise for public transit system

As ReportedPassed by the Senate Local Government Committee 136th General Assembly Regular Session Sub.

281 2025-2026 Senator Roegner ToCosponsors: amend sections 306.04 and 306.14 of the Revised 1 Code to authorize a board of county 2 commissioners, on its own behalf, to award a 3 franchise for the operation of a public transit 4 system.

Senators Cirino, Patton To amend sections 306.04 and 306.14 of the Revised 1 Code to authorize a board of county 2 commissioners, on its own behalf, to award a 3 franchise for the operation of a public transit 4 system.

18 A board that established its own civil service 19 organization prior to October 25, 1995, shall establish by rule 20 Sub.

281 Page 2 As ReportedPassed by the Senate Localorganization Governmentprior Committeeto October 25, 1995, shall establish by rule 20 the seniority provisions relating to street railway and motor 21 bus employees in effect at the time of the acquisition of the 22 transit system by the county.

46 (3) Issue, with the approval of the county commissioners 47 when the issuance is made by the transit board, revenue bonds of 48 the county as provided in division (B) of section 306.09 of the 49 RevisedSub. Code, to secure funds to accomplish its purposes.

The 50 Sub.

281 Page 3 As ReportedPassed by the Senate LocalRevised GovernmentCode, Committee principal of and interest on such bonds, together with all other 51 payments required to besecure madefunds by the trust agreement or indenture 52 securing such bonds, shall be paid solely from revenues or other 53 income accruing to theaccomplish boardits frompurposes. facilities of the county 54 transit system designated in said agreement or indenture.

The 50 principal of and interest on such bonds, together with all other 51 payments required to be made by the trust agreement or indenture 52 securing such bonds, shall be paid solely from revenues or other 53 income accruing to the board from facilities of the county 54 transit system designated in said agreement or indenture.

71 (8) Borrow money or accept or contract to accept advances, 72 loans, gifts, grants, devises, or bequests from and enter into 73 contracts or agreements with any federal, state, or other 74 governmental or private source and hold and apply advances, 75 loans, gifts, grants, devises, or bequests according to the 76 terms thereof including provisions which are required by such 77 federal, state, or other governmental or private source to 78 protect the interest of employees affected by such advances, 79 Sub.

281 Page 4 As ReportedPassed by the Senate Localprotect Governmentthe Committeeinterest of employees affected by such advances, 79 loans, gifts, grants, devises, or bequests.

105 (12) Procure and pay all or any part of the cost of group 106 hospitalization, surgical, major medical, or sickness and 107 accident insurance, or a combination thereof, for the officers 108 and employees of the county transit system and their immediate 109 Sub.

281 Page 5 As ReportedPassed by the Senate Localand Governmentemployees Committeeof the county transit system and their immediate 109 dependents, issued by an insurance company, duly authorized to 110 do business in this state;

136 (a) Nothing contained in this division authorizes a county 137 transit board or a board of county commissioners to appropriate 138 any land, rights, rights-of-way, franchises, or easements 139 Sub.

281 Page 6 As ReportedPassed by the Senate Localany Governmentland, Committeerights, rights-of-way, franchises, or easements 139 belonging to the state or to a municipal corporation without the 140 consent of the state or of the municipal corporation, and no 141 county transit board or board of county commissioners shall 142 exercise the right of eminent domain to acquire any certificate 143 of public convenience and necessity, or any part thereof, issued 144 to a for-hire motor carrier by the public utilities commission 145 of Ohio or by the federal motor carrier safety administration of 146 the United States, or to take or disturb other real estate or 147 interests therein, personal property, or any combination thereof 148 belonging to any municipal corporation without the consent of 149 the legislative authority of such municipal corporation, or take 150 or disturb real estate or interests therein, personal property, 151 or any combination thereof belonging to any other political 152 subdivision, public corporation, public utility, or common 153 carrier, which is necessary and convenient in the operation of 154 such political subdivision, public corporation, public utility, 155 or common carrier unless provision is made for the restoration, 156 relocation, or duplication of that taken or upon the election of 157 such political subdivision, public corporation, public utility, 158 or common carrier for the payment of compensation, if any, at 159 the sole cost of the county transit system.

166 (c) If such restoration or duplication proposed to be made 167 under this division involves a relocation, the county transit 168 board or board of county commissioners shall acquire no interest 169 or right in or to the appropriated property or facility until 170 Sub.

281 Page 7 As ReportedPassed by the Senate Localor Governmentright Committeein or to the appropriated property or facility until 170 the relocated property or facility is available for use and 171 until marketable title thereto has been transferred to the 172 political subdivision, public corporation, public utility, or 173 common carrier.

196 (i) The total revenue which would be produced by the tax 197 rate of each such taxing district in the tax year immediately 198 prior to the removal of the acquired property from the tax 199 duplicate, applied to the real estate tax duplicate of each of 200 Sub.

281 Page 8 As ReportedPassed by the Senate Localduplicate, Governmentapplied Committeeto the real estate tax duplicate of each of 200 such taxing districts in each tax year subsequent to the year of 201 removal;

For 228 systems operated by a county transit board, copies of this 229 Sub.

281 Page 9 As ReportedPassed by the Senate Localsystems Governmentoperated Committeeby a county transit board, copies of this 229 report shall be furnished to the county commissioners as well as 230 a monthly summary statement of revenues and expenses for the 231 preceding month sufficient to show the exact financial condition 232 of the county transit system as of the last day of the preceding 233 month.

252 (d) "Certification" means the order issued by a board of 253 county commissioners, after submission of an application for 254 certification, that approves the operation of a public transit 255 system, or a portion of a public transit system, by a 256 franchisee, subject to terms and conditions imposed by the 257 board.Sub.

258 Sub.

281 Page 10 As ReportedPassed by the Senate Localboard. Government Committee (e) "Franchise" means the document and all accompanying 259 rights approved by the board of county commissioners that 260 provides the franchisee with the exclusive right to establish a 261 public transit system and, subject to certification, the right 262 to operate a public transit system.

258 (e) "Franchise" means the document and all accompanying 259 rights approved by the board of county commissioners that 260 provides the franchisee with the exclusive right to establish a 261 public transit system and, subject to certification, the right 262 to operate a public transit system.

The 281 board shall include in the certification performance targets 282 related to the operation of a public transit system by the 283 franchisee, including cost savings to the county, gains in 284 efficiency, the safety and security of the traveling public and 285 franchise employees, service to the traveling public, return on 286 any investments made by the county, and any other performance 287 targetsSub. as determined by the board.

All terms and conditions of 288 the order of certification are terms and conditions of the 289 Sub.

281 Page 11 As ReportedPassed by the Senate Localtargets Governmentas Committeedetermined franchise.by the board.

All terms and conditions of 288 the order of certification are terms and conditions of the 289 franchise.

The franchise shall specifically 315 provide that the board shall have the right to terminate the 316 franchiseSub. if the board determines that the franchisee has 317 materially breached the franchise in any manner.

The franchisee 318 Sub.

281 Page 12 As ReportedPassed by the Senate Localfranchise Governmentif Committee may appeal such a termination to the board,board and,determines ifthat the boardfranchisee 319has upholds317 thematerially termination,breached to the properfranchise courtin ofany commonmanner. pleas.

The franchisee 318 may appeal such a termination to the board, and, if the board 319 upholds the termination, to the proper court of common pleas.

340 (B) A franchisee that is awarded a franchise by a board of 341 county commissioners on behalf of a county transit board shall 342 submit an annual written report to the board of county 343 commissioners or and the county transit board, if one exists, 344 notSub. later than a date designated by the board of county 345 commissioners and in a form prescribed by that board.

The board 346 Sub.

281 Page 13 As ReportedPassed by the Senate Localnot Governmentlater Committeethan ofa countydate commissionersdesignated alsoby shall direct the franchisee to 347 submit the report to the board of county commissioners,345 thecommissioners 348and countyin transita board,form orprescribed both.by that board.

The board 346 of county commissioners also shall direct the franchisee to 347 submit the report to the board of county commissioners, the 348 county transit board, or both.