(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.