In some states and localities, private operation of a transit facility may be subject to franchise laws. Such laws and ordinances could subject private transit operators of projects using public rights-of-way (ROW) to utility type regulation over fares, to approval by public votes and other restrictions. Exemptions from such laws may be required to facilitate modern PPPs where fare-setting authority is retained by the public agency or, in the rare case, delegated to the private entity and controlled by contract.18 Joint use of transit ROW by cable and other telecommunications entities are also subject to other local laws that impact PPPs, such as franchise laws governing use of public ROW.
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18 Clark County, Nevada adopted a new franchise ordinance to facilitate the private development and operation of the Las Vegas Monorail. Clark County Code, Chapter 5.04 Monorail. http://www.accessclarkcounty.com/administrative_services/FranchiseManagement/ordinances/ord_5.04.htm.