PRINTER'S NO. 2739

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2152 Session of 1980


        INTRODUCED BY PITTS, RAPPAPORT, ROCKS, HOEFFEL, MICOZZIE,
           NAHILL AND WHITE, JANUARY 22, 1980

        REFERRED TO COMMITTEE ON TRANSPORTATION, JANUARY 22, 1980

                                     AN ACT

     1  Amending the act of August 14, 1963 (P.L.984, No.450), entitled
     2     "An act to increase the commerce and prosperity of the people
     3     of the Commonwealth, to improve their health and living
     4     conditions, and to alleviate the problems created by traffic
     5     congestion and the existence of inadequate mass
     6     transportation facilities, by authorizing the creation of a
     7     transportation authority to function in each metropolitan
     8     area consisting of any county of the first class and all
     9     nearby counties within a radius of twenty (20) miles of any
    10     such first class county, as a body corporate and politic for
    11     the purpose of establishing an integrated mass transportation
    12     system with all pertinent powers including, but not limited
    13     to, leasing, acquiring, owning, operating and maintaining a
    14     system for, or otherwise providing for, the transportation of
    15     persons, authorizing the borrowing of money and issuance of
    16     bonds therefor, conferring the right of eminent domain on the
    17     authority; altering the jurisdiction of the Public Utility
    18     Commission, authorizing the acceptance of grants from
    19     Federal, State and local governments, limiting actions
    20     against the authority and exempting it from taxation,
    21     authorizing counties and municipalities to enter into
    22     compacts for the financing of each authority and to make
    23     appropriations in accordance with such compacts, conferring
    24     exclusive jurisdiction upon certain courts with respect to
    25     matters relating to such authority, and empowering each
    26     authority to function outside of the metropolitan area under
    27     certain terms and conditions," further providing for and
    28     adding definitions, further providing for the rights and
    29     powers of authorities and public hearings, establishing a
    30     citizen advisory committee, further providing for the
    31     transportation board and its powers and duties, further
    32     providing for the duties and powers of certain officers and
    33     employees and the classification of certain officers and


     1     employees, further providing for contracts, sales, purchases
     2     and concessions, further providing for compacts, imposing a
     3     requirement to submit a reorganization plan and providing
     4     sanctions for failure to submit a reorganization plan.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Clause (2) of subsection (a) of section 3, act of
     8  August 14, 1963 (P.L.984, No.450), known as the "Metropolitan
     9  Transportation Authorities Act of 1963," is amended and the
    10  subsection is amended by adding a clause to read:
    11     Section 3.  Definitions.--
    12     (a)  The following terms, whenever used or referred to in
    13  this act, shall have the following meanings, except in those
    14  instances where the context clearly indicates otherwise:
    15     * * *
    16     (2)  "Board" shall mean the governing [and administrative]
    17  and policymaking body of an authority.
    18     * * *
    19     (16)  "Comprehensive transit plan" shall mean a comprehensive
    20  statement, consisting of maps, charts and textual matter, of the
    21  authority's policies, strategies and objectives for the
    22  development of the transit system consistent with the
    23  legislative findings and declared policy of this act and the
    24  rights, powers and duties of the authority.
    25     * * *
    26     Section 2.  Clause (9) of subsection (d) of section 4 of the
    27  act, repealed in part April 28, 1978 (P.L.202, No.53), is
    28  amended and the subsection is amended by adding a clause to
    29  read:
    30     Section 4.  Creation of Transportation Authorities; Rights
    31  and Powers.--

    19800H2152B2739                  - 2 -

     1     * * *
     2     (d)  A duly certified authority shall have and may exercise
     3  all powers necessary or convenient for the carrying out of the
     4  aforesaid purposes, including but without limiting the
     5  generality of the foregoing, the following rights or powers:
     6     * * *
     7     (9)  To fix, alter, charge and collect fares, rates, rentals
     8  and other charges for its facilities by zones or otherwise at
     9  reasonable rates to be determined exclusively by it, subject to
    10  appeal, as hereinafter provided, for the purpose of providing
    11  for the payment of all expenses and obligations of the
    12  authority, including the acquisition, construction, improvement,
    13  repair, maintenance and operation of its facilities and
    14  properties, the payment of the principal and interest on its
    15  obligations, and to comply fully with the terms and provisions
    16  of any agreements made with the purchasers or holders of any
    17  such obligations. The authority shall determine by itself
    18  exclusively, after [appropriate] a public hearing, notice of
    19  which shall be published in two newspapers of general
    20  circulation and a publication specifically designed to reach
    21  minorities not fewer than thirty (30) calendar days prior to
    22  such hearing, the facilities to be operated by it, the services
    23  to be available to the public, and the rates to be charged
    24  therefor. Any person aggrieved by any rate or service or change
    25  of service fixed by the authority may bring an appeal against
    26  the authority in the court of common pleas of any county in the
    27  metropolitan area in which the charge, service or change of
    28  service shall be applicable, for the purpose of protesting
    29  against any such charge, service or change of service: Provided,
    30  however, That the grounds for such suits shall be restricted to
    19800H2152B2739                  - 3 -

     1  a manifest and flagrant abuse of discretion or an error of law;
     2  otherwise, all such actions by the authority shall be final.
     3  Upon the finding of an error of law or a manifest and flagrant
     4  abuse of discretion, the court shall issue an order setting
     5  forth the abuse or error and returning the matter to the
     6  authority for such further action as shall be not inconsistent
     7  with the findings of the court. No appeal from the action of the
     8  authority or from the decision of the court of common pleas
     9  shall act as a supersedeas, except when taken by the authority
    10  or any county or municipality, or, in other cases, when
    11  specially granted after a finding that irreparable and
    12  extraordinary harm will result. The courts shall give priority
    13  to all such appeals and no bond shall be required of any party
    14  instituting such an appeal under the provisions of this section.
    15     * * *
    16     (30)  To adopt consistent with the policies of this act and
    17  from time to time amend a comprehensive transit plan: Provided,
    18  however, That a public hearing shall be conducted prior to
    19  adoption or amendment. Notice of such public hearing shall be
    20  published in two newspapers of general circulation and a
    21  publication specifically designed to reach minorities not fewer
    22  than thirty (30) days prior to such hearing.
    23     Section 3.  The act is amended by adding sections to read:
    24     Section 4.1.  Public Hearings.--
    25     All public hearings required by this act shall be conducted
    26  so as to insure that:
    27     (1)  members of the public are afforded a reasonable
    28  opportunity to comment orally or in writing or both orally and
    29  in writing concerning actions the authority proposes to take;
    30     (2)  the site of the hearing is a convenient, accessible
    19800H2152B2739                  - 4 -

     1  location;
     2     (3)  members of the public are adequately informed at the
     3  outset regarding the purposes of the hearing and the matters on
     4  the agenda; and
     5     (4)  reasonable and legitimate questions from members of the
     6  public are answered.
     7     Section 4.2.  Citizen Advisory Committee.--
     8     (a)  There is hereby established a Citizen Advisory
     9  Committee. The committee shall consist of:
    10     (1)  An even number of members of the general public not
    11  fewer than fourteen (14) and not greater than twenty-four (24)
    12  (the exact number to be determined by the chief operations
    13  officer) who shall be appointed by the county commissioners of
    14  Bucks, Chester and Delaware Counties, the County Council of
    15  Montgomery County and the Mayor of the City of Philadelphia from
    16  residents of their respective municipalities who are regular
    17  users of mass transportation service; and
    18     (2)  Five (5) members of the general public, one resident
    19  from each of the counties of Bucks, Chester, Delaware and
    20  Montgomery and one resident from the City of Philadelphia who
    21  are regular users of mass transportation service who shall be
    22  appointed by the chief operations officer.
    23     (b)  The composition of the committee shall reflect the
    24  proportionate distribution of total ridership among the City of
    25  Philadelphia and the counties of Bucks, Chester, Delaware and
    26  Montgomery. The terms of the members shall be two years from the
    27  date of appointment or until a successor has been appointed
    28  except that one-half of the members first appointed shall serve
    29  for terms of one (1) year and the other one-half shall serve for
    30  terms of two (2) years. No member shall serve more than three
    19800H2152B2739                  - 5 -

     1  consecutive terms. The committee shall select from among their
     2  number a chairman, vice-chairman and a secretary. A majority of
     3  the members of the committee plus one shall constitute a quorum.
     4     (c)  The chief operations officer shall submit to the
     5  committee proposals regarding the adoption or amendment of a
     6  comprehensive transit plan, the annual operating budget, any
     7  capital budget, any changes in the level of service or fares or
     8  other matters of a similar nature prior to any final action
     9  relating to any of the foregoing. The committee may thoroughly
    10  consider such proposals and may prepare and transmit to the
    11  chief operations officer and to any interested member of the
    12  public written comments concerning the proposals prior to the
    13  date when final action is to be taken.
    14     (d)  Although the chief operations officer shall give careful
    15  and due consideration to the committee's comments prior to the
    16  taking of any final action, such comments shall be considered
    17  only advisory in nature.
    18     Section 4.  Sections 15 and 19 of the act are amended to
    19  read:
    20     Section 15.  [Administrative Board] Governing and
    21  Policymaking Body; Policy Matters.--
    22     (a)  The governing and [administrative] policymaking body of
    23  the authority shall be a board, to be known as the
    24  transportation board of the metropolitan area, consisting of
    25  members to be appointed as hereinafter provided, who, except for
    26  the appointee of the Governor, must be residents of the
    27  metropolitan area. No board member shall be allowed any fees,
    28  perquisites or emoluments, reward or compensation for his
    29  services as a member or officer of the authority, but he shall
    30  be reimbursed for actual expenses incurred by him in the
    19800H2152B2739                  - 6 -

     1  performance of his duties.
     2     (b)  The board shall not involve itself in the day-to-day
     3  administration of the authority's business. It shall limit its
     4  exercise of powers to such areas of discretion or policy as the
     5  functions and programs of the authority, the authority's
     6  operating and capital budgets, the authority's standard of
     7  services, utilization of technology, the organizational
     8  structure and subject to the provisions of this act the
     9  selection of personnel and the establishment of salaries for
    10  such personnel.
    11     Section 19.  Secretary, [Treasurer,] Oath, Bond.--
    12     The board shall appoint a secretary [and a treasurer, neither
    13  of whom shall] who shall not be a member of the board, to hold
    14  office during the pleasure of the board, and shall fix [their]
    15  such person's duties and compensation. The secretary shall not
    16  be engaged in any other business or employment during his or her
    17  tenure of office as secretary of the board. Before entering upon
    18  the duties of [their respective offices, they] his or her office
    19  he or she shall take and subscribe the constitutional oath of
    20  office. [The treasurer and such other officers] Officers and
    21  employees of the authority, and such members of the board as the
    22  board may determine, shall execute corporate surety bonds,
    23  conditioned upon the faithful performance of their respective
    24  duties. A blanket form of surety bond may be used for this
    25  purpose if the board deems such procedure to be practical and
    26  prudent. The obligation of the sureties shall not extend to any
    27  loss sustained by the insolvency, failure or closing of any
    28  national or state bank wherein [the treasurer has deposited]
    29  funds of the authority have been deposited if the bank has been
    30  approved by the board as a depository for these funds. The oaths
    19800H2152B2739                  - 7 -

     1  of office and the surety bond or bonds shall be filed in the
     2  principal office of the authority.
     3     Section 5.  The act is amended by adding sections to read:
     4     Section 19.1. Controller.--
     5     The board shall appoint a controller, who shall not be a
     6  member of the board, to hold office during the pleasure of the
     7  board and shall fix his or her compensation. The controller
     8  shall conduct a monthly examination of the books, accounts,
     9  documents and papers of the authority and report the results of
    10  his or her investigation to the board and the chief operations
    11  officer. The controller shall submit an annual report of the
    12  authority's financial condition which shall be in addition to
    13  any other financial report required by this act to the board and
    14  the chief operations officer. The controller shall execute a
    15  corporate surety bond and shall take and subscribe the oath of
    16  office provided in section 19.
    17     Section 19.2.  Treasurer.--
    18     The chief operations officer shall appoint a treasurer to
    19  hold office at his or her pleasure. In addition to the duties
    20  imposed on the treasurer by this act, the treasurer shall
    21  perform such other duties as the chief operations officer shall
    22  prescribe. The treasurer shall execute a corporate surety bond
    23  and shall take and subscribe the oath of office prescribed in
    24  section 19.
    25     Section 6.  Subsections (a) of section 20 and sections 22 and
    26  23 of the act are amended to read:
    27     Section 20.  Deposit of Funds, Checks and Drafts; Security
    28  Collateral.--
    29     (a)  All funds deposited by the treasurer in any bank shall
    30  be placed in the name of the authority and shall be withdrawn or
    19800H2152B2739                  - 8 -

     1  paid out only by check or draft upon the bank signed by the
     2  treasurer and countersigned by the chairman of the board. The
     3  board may designate any of its members of any officer or
     4  employee of the authority to affix the signature of the chairman
     5  [and another to affix the signature of the treasurer] to any
     6  check or draft for payment of salaries or wages and for the
     7  payment of any other obligation of not more than [$2,500.00]
     8  $100,000.00
     9     * * *
    10     Section 22.  [General Manager] Chief Operations Officer.--
    11     The board, before engaging in transportation operations,
    12  shall appoint a [general manager] chief operations officer, who
    13  shall have demonstrated that he or she is competent and
    14  experienced in the area of transit management, and shall fix his
    15  or her compensation. The [general manager shall have management
    16  of the properties and business of the authority and the
    17  employees thereof, subject to the general control of the board;
    18  shall direct the enforcement of all resolutions, rules and
    19  regulations of the board and shall perform such other duties as
    20  may be prescribed from time to time by the board. With the
    21  approval of the board, he shall appoint such officers and
    22  employees to be under the general manager as the board shall
    23  determine] chief operations officer shall have the power and it
    24  shall be his or her duty to:
    25     (1)  Manage the properties of the authority.
    26     (2)  Attend to the day-to-day administration, fiscal
    27  management and operation of the authority's business.
    28     (3)  Appoint such employees as he or she deems necessary to
    29  conduct the affairs of his or her office, subject to the
    30  provisions of this act.
    19800H2152B2739                  - 9 -

     1     (4)  Implement and enforce all resolutions, rules and
     2  regulations of the board.
     3     (5)  Submit to the board according to a schedule established
     4  by it periodic reports showing the overall state or condition of
     5  the transit system according to established industry performance
     6  standards. Such reports shall be considered public records.
     7     (6)  Implement policies established by the board.
     8     Section 23.  [Legal Division:] Counsel to the Board.--
     9     [(a)]  The board, [before engaging in transporation
    10  operations, shall establish a legal division which shall be
    11  administered by] shall appoint a [chief] counsel to the board,
    12  who shall be an attorney-at-law admitted to practice before the
    13  Supreme Court of the Commonwealth, and who shall be appointed by
    14  the board to serve at its discretion. The board shall pay to the
    15  counsel to the board reasonable compensation for service
    16  actually performed. [The legal division, in addition to the
    17  chief counsel, shall consist of such attorneys and other
    18  employees as the board from time to time shall determine to be
    19  necessary, and who shall be appointed by the chief counsel, with
    20  the approval of the board. The legal division shall administer
    21  the legal affairs of the board, shall prosecute and defend,
    22  settle or compromise all suits or claims for and on behalf of
    23  the authority, and] The counsel to the board shall advise the
    24  board [and its officers] in all matters relating to [their] its
    25  official duties and shall notwithstanding any other provision of
    26  this act approve all matters relating to bonds and indentures.
    27     [(b)  The chief counsel may, from time to time, with the
    28  approval of the board, retain such other legal counsel on such
    29  terms and for such purposes as shall be deemed by the board to
    30  be necessary or desirable. Nothing in this section or in the
    19800H2152B2739                 - 10 -

     1  preceding section shall be construed so as to limit the power of
     2  the legal or other officers of the counties and municipalities
     3  comprising the metropolitan area to act in behalf of the board
     4  in their official capacities when requested so to do by
     5  resolution of the board.]
     6     Section 7.  The act is amended by adding a section to read:
     7     Section 23.1.  Legal Division: General Counsel.--
     8     (a)  The chief operations officer shall establish a legal
     9  division which shall be administered by a full time general
    10  counsel who shall be an attorney-at-law admitted to practice
    11  before the Supreme Court of Pennsylvania and who shall be
    12  appointed by the chief operations officer to serve at his
    13  pleasure. The legal division, in addition to the general
    14  counsel, shall consist of such attorneys and other employees as
    15  the general counsel from time to time shall determine to be
    16  necessary, and who shall be appointed by the chief operations
    17  officer. Except as provided in section 23 the legal division
    18  shall administer the legal affairs of the authority, shall
    19  prosecute and defend, settle or compromise all suits or claims
    20  for and on behalf of the authority, and shall advise the chief
    21  operations officer in all matters relating to his or her
    22  official duties.
    23     (b)  The general counsel may, from time to time, with the
    24  approval of the chief operations officer, retain such other
    25  legal counsel on such terms and for such purposes as shall be
    26  deemed by the chief operations officer to be necessary or in
    27  cases where the needs of the authority would be better served.
    28  Nothing in this section or in the preceding section shall be
    29  construed so as to limit the power of the legal or other
    30  officers of the counties and municipalities comprising the
    19800H2152B2739                 - 11 -

     1  metropolitan area to act in behalf of the chief operations
     2  officer in their official capacities when requested so to do by
     3  the chief operations officer.
     4     Section 8.  Section 24, subsections (a) and (b) of section
     5  25, subsection (a) of section 27 and sections 28 and 30 of the
     6  act, section 24 amended July 27, 1973 (P.L.240, No.66) and
     7  subsection (f) of section 28 amended February 2, 1966 (1965
     8  P.L.1862, No.587) are amended to read:
     9     Section 24.  Other Employees.--
    10     [The board shall provide for the employment of such other
    11  officers, agents, consultants, engineers and employees as may be
    12  necessary for the performance of the work of the authority.] The
    13  board acting through the chief operations officer shall have the
    14  right to bargain collectively and enter into agreements with
    15  labor organizations. The board acting through the chief
    16  operations officer shall recognize and be bound by existing
    17  labor union agreements where they exist between labor unions and
    18  transportation companies that are acquired, purchased, condemned
    19  or leased by the board. It shall designate their duties and
    20  require bonds of such of them as the board may designate. The
    21  compensation of the [general manager, chief counsel] chief
    22  operations officer, counsel to the board, secretary and 
    23  [comptroller chief engineer and all other officers, attorneys,
    24  consultants, agents and employees] controller shall be fixed by
    25  the board. For all other officers, employees, attorneys,
    26  engineers, consultants and agents the board shall establish
    27  salary scales. The chief operations officer shall establish
    28  within such salary scales compensation levels based upon written
    29  appraisals of performance for all employees under his control.
    30  The secretary and the controller shall establish within such
    19800H2152B2739                 - 12 -

     1  salary scales compensation levels based upon written appraisals
     2  of performance for all employees in their respective offices.
     3  With the exception of the secretary, any of the foregoing may be
     4  appointed, retained, hired or employed on a part-time basis and
     5  maybe engaged in other business or professional activities.
     6  Provided, That no salaried executive officer of the authority
     7  shall hold any other office in or be an employee of the Federal,
     8  State or any county or municipal government except an office or
     9  employment without compensation or an office in the Military
    10  Reserve or National Guard.
    11     Section 25.  Classification of Positions and Employments;
    12  Discharge or Demotion of Officers or Employees; Hearings;
    13  Seniority; Pensions and Retirement.--
    14     (a)  The [board] chief operations officer shall classify all
    15  the offices, positions and grades of regular employment
    16  required, excepting that of the chairman of the board, [the
    17  general manager,] secretary, [treasurer, chief counsel] counsel
    18  to the board and [other attorneys in the legal division]
    19  controller, with reference to the duties thereof and the
    20  compensation fixed therefor and adopt rules governing
    21  appointments to any of such offices or positions on the basis of
    22  merit and efficiency. No discrimination shall be made in any
    23  appointment or promotion because of race, creed, color or
    24  political or religious affiliations. No officer or employee
    25  shall be discharged or demoted except for just cause.
    26     (b)  The [board] chief operations officer may abolish any
    27  office or reduce the force of employees for lack of work or lack
    28  of funds, but in so doing, the officer or employee with the
    29  shortest service record in the class and grade to which he
    30  belongs shall be first released from service and shall be
    19800H2152B2739                 - 13 -

     1  reinstated in order of seniority, when additional force of
     2  employees is required. Seniority shall be considered a working
     3  condition. No qualified person shall be laid off if a transfer
     4  to another job, division or department within the transportation
     5  system can be arranged.
     6     * * *
     7     Section 27.  Compacts to Finance Operations and Particular
     8  Projects.--
     9     (a)  The counties and municipalities in any metropolitan area
    10  shall [be and they are hereby authorized to] enter into a
    11  compact or compacts among themselves and/or with the authority
    12  to provide for meeting the authority's capital or operating
    13  budget by appropriations, annual or otherwise, of such sums and
    14  in such proportions as may be agreed upon in such compact to be
    15  paid by each signatory party thereto. The obligation incurred
    16  thereby shall be for the term as set forth in the compact
    17  without regard to the provisions of any law, ordinance or
    18  regulation to the contrary, and shall constitute a commitment
    19  and obligation, binding and absolute, on the part of each such
    20  signatory party, to appropriate and pay over the necessary funds
    21  in accordance therewith. The said operating budget shall include
    22  all sums of money necessary for the formation and organization
    23  of any authority and all items of operating expenses in
    24  connection with said authority, as well as necessary funds for
    25  planning and research appropriate and consistent with the
    26  purport of this act and any compact entered into pursuant to
    27  this act.
    28     * * *
    29     Section 28.  Contracts, Procurement and Sale of Property;
    30  Concessions; Advertisement; Bidding.--
    19800H2152B2739                 - 14 -

     1     (a)  Except in the purchase of unique articles or articles
     2  which, for any other reason, cannot be obtained in the open
     3  market and except as hereinafter provided, competitive bids
     4  shall be secured before any purchase or sale, by contract or
     5  otherwise is made or before any contract is awarded for
     6  construction, alterations, supplies, equipment, repairs or
     7  maintenance or for rendering any services to the authority other
     8  than professional services; and the purchase shall be made from
     9  or the contract shall be awarded to the lowest responsible
    10  bidder; or a sale to the highest responsible bidder. No purchase
    11  of any unique article or other articles which cannot be obtained
    12  in the open market shall be made without express approval of the
    13  board where the amount involved is in excess of [$5,000.00]
    14  $10,000.00.
    15     (b)  Purchases and Sales Over [$5,000.00] $10,000.00.
    16     All purchases and sales in excess of [$5,000.00] $10,000.00
    17  shall be awarded after advertising in a local newspaper of
    18  general circulation in the metropolitan area at least two weeks
    19  prior to the bid opening. Bids shall be publicly opened and read
    20  aloud at a date, time, and place designated in the invitation to
    21  bid. Invitations to bid shall be sent at least one week prior to
    22  the bid opening to at least three potential bidders who are
    23  qualified technically and financially to submit bids, or in lieu
    24  thereof a memorandum shall be kept on file showing that less
    25  than three potential bidders so qualified exist in the market
    26  area within which it is practicable to obtain bids.
    27     (c)  Purchases and Sales Under [$5,000.00] $10,000.00 and
    28  Over [$1,000.00] $2,500.00.
    29     Written price quotations from at least three qualified and
    30  responsible vendors shall be obtained for all purchases and
    19800H2152B2739                 - 15 -

     1  sales under [$5,000.00] $10,000.00 and over [$1,000.00]
     2  $2,500.00, or in lieu thereof, a memorandum, approved by the
     3  [board] chief operations officer, shall be kept on file showing
     4  that less than three vendors so qualified exist in the market
     5  area within which it is practicable to obtain quotations; except
     6  as hereinafter provided.
     7     (d)  Purchases and Sales Under [$1,000.00] $2,500.00.
     8     Purchases or sales under [$1,000.00] $2,500.00 may be
     9  negotiated with or without competitive bidding under sound
    10  procurement procedures as promulgated and established by the
    11  [board] chief operations officer.
    12     (e)  Emergency Purchase.
    13     Competitive bidding requirements may be waivered if it is
    14  determined by the [general manager] chief operations officer, or
    15  in such other manner as the board may, by regulation, provide,
    16  that an emergency directly and immediately affecting customer
    17  service, or public health, safety or welfare requires immediate
    18  delivery of supplies, materials, equipment or services:
    19  Provided, however, That a record of circumstances explaining the
    20  emergency shall be submitted to the board at its next regular
    21  meeting and thereafter kept on file.
    22     (f)  Concessions.
    23     All concessions granted by the authority for the sale of
    24  products or the rendition of services for a consideration on
    25  authority property shall be awarded only pursuant to written
    26  specifications after competitive bidding and to the highest
    27  responsible bidder in a manner similar to that required by the
    28  preceding paragraph relating to contracts for procurement
    29  involving an expenditure of more than [$5,000.00] $10,000.00:
    30  Provided, That the foregoing requirement for competitive bidding
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     1  shall not apply to any concession which has been granted by a
     2  transportation system acquired by the authority and which by the
     3  terms of the agreement granting it will terminate within one
     4  year from date of the acquisition of the transportation system
     5  by the authority, nor to any concession involving the estimated
     6  receipt by the authority of less than [$1,000.00] $2,500.00 over
     7  the period for which the concession is granted.
     8     (g)  Sale or Lease of Authority-Owned Property.
     9     Contracts for the sale or lease of real property owned by the
    10  authority shall be awarded after competitive bidding as shown in
    11  paragraph (b) "Purchases and Sales Over [$5,000.00] $10,000.00,"
    12  except where contract is entered into with the Commonwealth or
    13  any political subdivision or agency or instrumentality thereof
    14  or with the United States government or any agency or
    15  instrumentality thereof.
    16     (h)  Negotiated Contracts.
    17     Contracts for the management of authority-owned property,
    18  such as bus routes or subway systems may be negotiated and
    19  awarded by an affirmative vote of one more than a majority of
    20  all members of the board.
    21     (j)  Fragmentation of Requirements to Avoid Public Bidding.
    22     Requirements shall not be split into parts for the purpose of
    23  avoiding the provisions of this section.
    24     (k)  Rejection of Bids.
    25     The authority shall have the right to reject any or all bids
    26  or parts of any or all bids, whenever, in the opinion of the
    27  board, such rejection is necessary for the protection of the
    28  interests of the authority. In every such case, a record shall
    29  be made, setting forth the reason for such rejection, which
    30  record shall thereafter be kept on file.
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     1     (l)  Board Rules.
     2     The board shall adopt rules and regulations to effectuate the
     3  provisions of this section.
     4     Section 30.  Fiscal Operating Year; Budget; Capital
     5  Program.--
     6     (a)  The board shall establish a fiscal operating year. At
     7  least ninety days prior to the beginning of the first full
     8  fiscal year after the creation of the authority and, annually
     9  thereafter, the board shall cause to be prepared and submitted
    10  to it a tentative operating budget and a tentative capital
    11  budget for the ensuing fiscal year. The tentative budgets shall
    12  be considered by the board and, subject to any revision and
    13  amendments as may be determined, shall be adopted at least
    14  thirty days prior to the first day of the ensuing fiscal year as
    15  the budgets for that year. The board shall establish such rules
    16  as are necessary for proper observance of the budgets.
    17  Simultaneously with the adoption of the budget, the board shall
    18  adopt a tentative capital program covering the ensuing six
    19  years.
    20     (b)  A public hearing shall be conducted prior to the
    21  adoption of the final operating budget and tentative capital
    22  program. Notice of such public hearing shall be published in two
    23  newspapers of general circulation and a publication specifically
    24  designed to reach minorities not fewer than thirty (30) days
    25  prior to such hearing.
    26     Section 9.  (a)  The governing bodies of all counties of the
    27  third class and second class A which are involved with any city
    28  of the first class in the operation of a mass transportation
    29  system together with the mayor of any city of the first class in
    30  consultation with the Governor shall submit to the Governor and
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     1  the General Assembly a plan for the reorganization of any
     2  transportation authority created pursuant to the act of August
     3  14, 1963 (P.L.984, No.450), known as the "Metropolitan
     4  Transportation Authorities Act of 1963," prior to June 30, 1980.
     5  The reorganization plan shall contain a discussion of and
     6  recommendations concerning the following:
     7     (1)  the veto power invested in the transportation board;
     8     (2)  the difficulties occasioned by dual ownership of real
     9  and personal property by such authority and any city of the
    10  first class.
    11     (3)  the problems precipitated by the composition and
    12  structure of the transportation board; and
    13     (4) any other issue reasonably related to the foregoing.
    14     (b)  If the reorganization plan is not submitted in
    15  accordance with subsection (a) no authority created pursuant to
    16  the "Metropolitan Transportation Authorities Act of 1963" shall
    17  be eligible to receive any State funds for fiscal year 1980-
    18  1981.
    19     Section 10.  The transportation board of any authority
    20  created pursuant to the "Metropolitan Transportation Authorities
    21  Act of 1963," shall appoint a new counsel to the board and
    22  controller prior to June 30, 1980.
    23     Section 11.  This act shall take effect immediately.





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