§1–703.

    (a)    It is the policy of the State to authorize each county and municipality to displace or limit competition in the area of public transportation to:

        (1)    provide adequate, economical, and efficient transportation services;

        (2)    protect against excessive and inconsistent prices for transportation services;

        (3)    conserve energy and reduce accidents, air pollution, congestion, and traffic hazards through public transportation;

        (4)    encourage its use by contributing capital and operating funds so that transportation may be provided at the lowest cost; and

        (5)    promote the general welfare by providing a comprehensive transportation system.

    (b)    Notwithstanding any anticompetitive effect, a county or municipality may:

        (1)    (i)    grant one or more franchises for transportation services on an exclusive or nonexclusive basis;

            (ii)    impose franchise fees;

            (iii)    establish rates applicable to the franchise; and

            (iv)    adopt rules, regulations, and licensing requirements for the operation of the franchise; or

        (2)    operate a public transportation system on an exclusive basis, including:

            (i)    establishing rates for the public transportation system; and

            (ii)    adopting rules and regulations for the operation of the public transportation system.