An authority, immediately upon its organization, shall commence its study of a system of transportation within the service area. Such study shall include, but not be limited to the estimated cost of acquisition of existing transportation systems, the development of facilities, the estimates of revenues and the financial feasibility of a system of transportation. Thereafter, the authority shall prepare a plan of operation showing the service area and the pattern of its system. The plan of operation shall be submitted for approval to the county council of the county where the authority is located, and simultaneously, the authority shall submit to the county council the recommendation of the authority on the plan of operation, and a schedule disclosing estimated cost of acquisition of existing transportation systems, estimates of revenue and expenditures for the proposed plan of operation, and the proposed method of financing the acquisition and the plan of operation. The county council shall advertise the fact that the plan of operation has been submitted and is available for public inspection at least once each week for two consecutive weeks in a newspaper of general circulation in the county where the authority is located: Provided, That no action may be taken by the county council until the plan of operation has been on file in the office of the county council and available for public inspection for a period of at least thirty days following the date of publication of the second notice. The county council may approve or reject the plan of operation as submitted or, at any time thereafter, direct the authority to revise the original plan of operation. In the event of a revision of the original plan of operation, such revised plan of operation shall be resubmitted to the county council and shall be acted upon in the same manner as herein provided in the case of the submission by the authority of the original plan of operation. Prior to approving or rejecting the plan of operation or revised plan of operation, the county council may submit the question of approval of such plan or revised plan of operation for referendum at any general, municipal or primary election. In the event of a referendum, the question shall be submitted on the ballot or on voting machines in the manner provided by the election laws of the Commonwealth and shall be in substantially the following form:

The referendum on this question shall be governed in all respects by the election laws of the Commonwealth in so far as they are applicable. Upon final approval by the county council, the original or revised plan of operation shall be recorded in the office of the recorder of deeds of the county or counties affected thereby and a copy of said plan of operation shall also be filed with the Public Utility Commission. The authority shall, thereafter, have the right to make such changes in the pattern of its transportation system and its service area as it may deem proper, subject to appeal to the court of common pleas in the same manner as provided for in clause (9) of subsection (b) of section 3 of this act, by adopting an amendment to the plan of operation or service area and filing and recording the same in the office of the recorder of deeds and with the Public Utility Commission as above provided. The authority shall not have power to acquire by purchase, condemnation or otherwise, any existing transportation systems, or engage in the operation of a transportation system as provided under this act, until it has met the requirements for recording and filing of the plan of integrated operation as provided herein: Provided, however, That the authority may enter into option agreements with any existing transportation systems for the purchase, lease or operation thereof, subject to the final approval of the plan of operation by the county council: Provided further, That nothing in this section, including the foregoing proviso clause, shall prevent, limit, restrict or interfere with in any way an undertaking or joining by the authority of any demonstration, test or experimental project relevant to, and necessary for, the establishment of an integrated transportation system or of any demonstration, test or experimental project that may be required, or advisable, to establish the feasibility of a transportation system.

Upon the recording of the plan of operation, any law to the contrary notwithstanding, the authority shall have exclusive jurisdiction with respect to all matters regarding its transportation system within the service area as set forth in the plan of operation or as from time to time changed as in this section: Provided, That if the authority shall at any time desire to abandon or change any portion of a transportation system outside the territorial limits of the county incorporating the authority, the approval for such abandonment or change must be secured by the authority from the Public Utility Commission.

All group and party services provided by the authority outside the service area under rights acquired by it pursuant to this act shall be subject to the regulation by the Public Utility Commission.