SENATE AMENDED PRIOR PRINTER'S NO. 957 PRINTER'S NO. 1975
No. 878 Session of 1993
INTRODUCED BY McCALL, DeWEESE, CESSAR, LINTON, MIHALICH, TRELLO, COY, B. SMITH, DeLUCA, PISTELLA, DALEY, FAJT, PRESTON, STISH, MELIO, ROONEY, BELFANTI, CORNELL, OLASZ, WOGAN, HARLEY, SERAFINI, CLARK, BELARDI KASUNIC, BATTISTO, CIVERA AND TOMLINSON, MARCH 24, 1993
SENATOR FUMO, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, MAY 26, 1993
AN ACT
1 Amending Title TITLES 74 (TRANSPORTATION) AND 75 (Vehicles) of <--
2 the Pennsylvania Consolidated Statutes, FURTHER PROVIDING FOR <--
3 THE DISTRIBUTION OF ASSET MAINTENANCE FUNDS; AUTHORIZING THE
4 CREATION OF A TRANSPORTATION AUTHORITY TO FUNCTION IN EACH
5 METROPOLITAN AREA CONSISTING OF ANY COUNTY OF THE FIRST CLASS
6 AND ALL NEARBY COUNTIES WITHIN A RADIUS OF 20 MILES OF ANY
7 SUCH FIRST CLASS COUNTY, AS A BODY CORPORATE AND POLITIC AND
8 AS AN AGENCY AND INSTRUMENTALITY OF THE COMMONWEALTH FOR THE
9 PURPOSE OF ESTABLISHING AN INTEGRATED MASS TRANSPORTATION
10 SYSTEM WITH ALL PERTINENT POWERS, INCLUDING, BUT NOT LIMITED
11 TO, LEASING, ACQUIRING, OWNING, OPERATING AND MAINTAINING A
12 SYSTEM FOR OR OTHERWISE PROVIDING FOR THE TRANSPORTATION OF
13 PERSONS; AUTHORIZING THE BORROWING OF MONEY AND ISSUANCE OF
14 BONDS THEREFOR AND CONFERRING THE RIGHT OF EMINENT DOMAIN ON
15 SUCH AN AUTHORITY; ALTERING THE JURISDICTION OF THE
16 PENNSYLVANIA PUBLIC UTILITY COMMISSION; AUTHORIZING THE
17 ACCEPTANCE OF GRANTS FROM FEDERAL, STATE AND LOCAL
18 GOVERNMENTS; LIMITING ACTIONS AGAINST SUCH AN AUTHORITY AND
19 EXEMPTING IT FROM TAXATION; AUTHORIZING COUNTIES AND
20 MUNICIPALITIES TO ENTER INTO COMPACTS FOR THE FINANCING OF
21 EACH AUTHORITY AND TO MAKE APPROPRIATIONS IN ACCORDANCE WITH
22 SUCH COMPACTS; CREATING A CITIZEN ADVISORY COMMITTEE;
23 CONFERRING EXCLUSIVE JURISDICTION UPON CERTAIN COURTS WITH
24 RESPECT TO MATTERS RELATING TO SUCH AUTHORITY AND EMPOWERING
25 EACH AUTHORITY TO FUNCTION OUTSIDE THE METROPOLITAN AREA
26 UNDER CERTAIN TERMS AND CONDITIONS; CONTINUING THE EXISTENCE
27 OF A PRESENTLY EXISTING TRANSPORTATION AUTHORITY; providing
28 for suspensions for offenses involving controlled substances,
29 for certain out-of-State documentations and for reports by
1 courts; and making a repeal. 2 THE GENERAL ASSEMBLY FINDS AND DECLARES AS FOLLOWS: <-- 3 (A) FINDINGS.-- 4 (1) THERE EXISTS IN THE URBAN AND SUBURBAN COMMUNITIES 5 IN METROPOLITAN AREAS, TRAFFIC CONGESTION AND SERIOUS MASS 6 TRANSPORTATION PROBLEMS BECAUSE OF UNDERDEVELOPED MASS 7 TRANSPORTATION FACILITIES RESULTING IN INADEQUATE OR 8 OVERCROWDED HIGH-COST CONDITIONS ON COMMONWEALTH HIGHWAYS AND 9 EXISTING MASS TRANSPORTATION FACILITIES. 10 (2) SUCH CONDITIONS OR A COMBINATION OF SOME OR ALL OF 11 THEM HAVE MADE AND WILL CONTINUE TO RESULT IN MAKING SUCH 12 COMMUNITIES ECONOMIC AND SOCIAL LIABILITIES HARMFUL TO THE 13 SOCIAL AND ECONOMIC WELL-BEING OF THE ENTIRE AREA, 14 DEPRECIATING VALUES THEREIN, REDUCING THE TAX REVENUES, 15 MAKING THE METROPOLITAN AREAS AND THEIR CONSTITUENT 16 COMMUNITIES LESS DESIRABLE AREAS IN WHICH TO LIVE AND WORK 17 AND THEREBY DEPRECIATING FURTHER THE GENERAL COMMUNITY WIDE 18 VALUES. 19 (3) THE FOREGOING CONDITIONS CANNOT BE EFFECTIVELY DEALT 20 WITH BY PRIVATE ENTERPRISE UNDER EXISTING LAW WITHOUT THE 21 ADDITIONAL AIDS GRANTED IN THIS ACT AND ARE BEYOND REMEDY OR 22 CONTROL BY GOVERNMENTAL REGULATORY PROCESSES. 23 (4) THE SOUND PLANNING AND DEVELOPMENT OF METROPOLITAN 24 MASS TRANSPORTATION FACILITIES IN ACCORDANCE WITH SOUND AND 25 APPROVED PLANS FOR THEIR PROMOTION, DEVELOPMENT AND GROWTH 26 WILL PROMOTE THE PUBLIC HEALTH, SAFETY, CONVENIENCE AND 27 WELFARE, AND THE PUBLIC ACQUISITION OF EXISTING MASS 28 TRANSPORTATION FACILITIES IN ACCORDANCE WITH THE SOUND PLANS 29 FOR THEIR REDEVELOPMENT AND PROMOTION WILL PROMOTE THE PUBLIC 30 HEALTH, SAFETY, CONVENIENCE AND WELFARE. 19930H0878B1975 - 2 -
1 (5) THE WELL-BEING AND ECONOMIC HEALTH OF THE COUNTIES 2 AND OTHER COMMUNITIES IN THE METROPOLITAN AREAS REQUIRE 3 INTEGRATED SYSTEMS OF MASS PASSENGER TRANSPORTATION. 4 (6) IT IS DESIRABLE THAT THE PUBLIC TRANSPORTATION 5 SYSTEMS IN THE METROPOLITAN AREAS BE IMPROVED, EXTENDED AND 6 SUPPLEMENTED BY THE CREATION OF AUTHORITIES AS PROVIDED IN 7 THIS ACT. 8 (7) THE ESTABLISHMENT OF METROPOLITAN TRANSPORTATION 9 AUTHORITIES AS AUTHORITIES OF THE COMMONWEALTH AND THE 10 CONTINUANCE OF THE EXISTING METROPOLITAN TRANSPORTATION 11 AUTHORITIES WILL PROMOTE THE PUBLIC SAFETY, CONVENIENCE AND 12 WELFARE. 13 (8) IT IS INTENDED THAT METROPOLITAN TRANSPORTATION 14 AUTHORITIES COOPERATE WITH OR ACQUIRE EXISTING TRANSPORTATION 15 OPERATORS OR FACILITIES SO THAT PRIVATE ENTERPRISE AND 16 GOVERNMENT MAY MUTUALLY PROVIDE ADEQUATE TRANSIT FACILITIES 17 FOR THE CONVENIENCE OF THE PUBLIC. 18 (9) IT IS INTENDED THAT ANY AUTHORITY CREATED OR 19 CONTINUED UNDER THIS ACT WILL COOPERATE WITH ALL 20 MUNICIPALITIES AND OTHER PUBLIC BODIES IN WHOSE TERRITORIES 21 IT OPERATES SO THAT THE TRANSPORTATION SYSTEM MAY BEST SERVE 22 THE INTERESTS OF THE RESIDENTS THEREOF. 23 (10) IT IS INTENDED THAT THE OPERATION OF A 24 TRANSPORTATION SYSTEM WILL ENHANCE THE QUALITY OF THE 25 ENVIRONMENT OF THE METROPOLITAN AREA BY RELIEVING HIGHWAY 26 CONGESTION AND PROVIDING FOR MULTIPASSENGER TRAVELING 27 PATTERNS. 28 (11) IT IS INTENDED THAT RESIDENTS OF THE METROPOLITAN 29 AREA MAY BE PROVIDED WITH ACCESS TO TRANSPORTATION FACILITIES 30 AND THE ABILITY TO TRAVEL WITHIN THE METROPOLITAN AREA 19930H0878B1975 - 3 -
1 REGARDLESS OF DISABILITY OR HANDICAP. 2 (B) DECLARATION.--THEREFORE, IT IS HEREBY DECLARED TO BE THE 3 POLICY OF THE COMMONWEALTH TO PROMOTE THE SAFETY AND WELFARE OF 4 ITS INHABITANTS BY AUTHORIZING THE CREATION OR CONTINUATION OF A 5 BODY CORPORATE AND POLITIC FOR EACH METROPOLITAN AREA, TO BE 6 KNOWN AS THE TRANSPORTATION AUTHORITY OF SUCH AREA, WHICH SHALL 7 EXIST AND OPERATE FOR THE PURPOSES CONTAINED IN THIS CHAPTER AS 8 AN AUTHORITY OF THE COMMONWEALTH. THESE PURPOSES ARE HEREBY 9 DECLARED TO BE PUBLIC USES FOR WHICH PUBLIC MONEY MAY BE SPENT 10 AND PRIVATE PROPERTY MAY BE ACQUIRED BY THE EXERCISE OF THE 11 POWER OF EMINENT DOMAIN. 12 The General Assembly of the Commonwealth of Pennsylvania 13 hereby enacts as follows: 14 Section 1. Sections 1532 and 1550 of Title 75 of the <-- 15 Pennsylvania Consolidated Statutes are amended by adding 16 subsections to read: 17 SECTION 1. SECTION 1311 OF TITLE 74 OF THE PENNSYLVANIA <-- 18 CONSOLIDATED STATUTES IS AMENDED BY ADDING A SUBSECTION TO READ: 19 § 1311. USE OF FUNDS DISTRIBUTED. 20 * * * 21 (J) LIMIT ON CERTAIN AMOUNTS EXPENDED.--NOTWITHSTANDING ANY 22 LAW TO THE CONTRARY, LOCAL TRANSPORTATION ORGANIZATIONS AND 23 TRANSPORTATION COMPANIES ARE AUTHORIZED TO EXPEND MONEYS 24 DISTRIBUTED PURSUANT TO SECTION 1310 FOR ASSET MAINTENANCE COSTS 25 IN AN AMOUNT NOT TO EXCEED THE GREATER OF: 26 (1) THE MAXIMUM AMOUNT OF ASSET MAINTENANCE EXPENDITURES 27 WHICH COULD HAVE BEEN APPROVED BY THE DEPARTMENT FOR 28 EXPENDITURE BY THAT LOCAL TRANSPORTATION ORGANIZATION OR 29 TRANSPORTATION COMPANY FOR THE 1991-1992 FISCAL YEAR PURSUANT 30 TO SECTION 17(A) OF THE ACT OF AUGUST 5, 1991 (P.L.238, 19930H0878B1975 - 4 -
1 NO.26), ENTITLED "AN ACT AMENDING TITLES 74 (TRANSPORTATION) 2 AND 75 (VEHICLES) OF THE PENNSYLVANIA CONSOLIDATED STATUTES, 3 CODIFYING PROVISIONS RELATING TO PUBLIC TRANSPORTATION; 4 IMPOSING CERTAIN FEES AND TAXES; FURTHER PROVIDING FOR 5 CERTAIN PENNSYLVANIA TURNPIKE PROJECTS; DEFINING 'FARM 6 EQUIPMENT'; FURTHER PROVIDING FOR THE RESPONSIBILITIES OF 7 VEHICLE TRANSFEREES, FOR EXEMPTIONS FROM REGISTRATION AND 8 CERTIFICATES OF TITLE AND FOR THE USE OF DEALER PLATES, 9 MULTIPURPOSE DEALER PLATES AND FARM EQUIPMENT PLATES; FURTHER 10 PROVIDING FOR FUNERAL PROCESSIONS; FURTHER PROVIDING FOR A 11 RESTRICTED RECEIPTS FUND AND FOR REGISTRATION FOR SNOWMOBILES 12 AND ATV'S; ESTABLISHING THE SNOWMOBILE TRAIL ADVISORY 13 COMMITTEE; FURTHER PROVIDING FOR THE HIGHWAY MAINTENANCE AND 14 CONSTRUCTION TAX; AND MAKING REPEALS," BASED UPON A 15 PROJECTION OF $200,000,000 IN TOTAL DEDICATED CAPITAL 16 ASSISTANCE FUNDS; OR 17 (2) THE AMOUNT PERMITTED TO BE EXPENDED FOR SUCH 18 PURPOSES UNDER SUBSECTION (E). 19 SECTION 2. CHAPTER 15 OF TITLE 74 IS REPEALED. 20 SECTION 3. TITLE 74 IS AMENDED BY ADDING A CHAPTER TO READ: 21 CHAPTER 17 22 METROPOLITAN TRANSPORTATION AUTHORITIES 23 SUBCHAPTER 24 A. GENERAL PROVISIONS 25 B. AUTHORIZATION AND ORGANIZATION OF AUTHORITIES 26 C. POWERS AND DUTIES 27 D. FUNDS AND BONDS OF AUTHORITIES 28 E. MISCELLANEOUS PROVISIONS 29 SUBCHAPTER A 30 GENERAL PROVISIONS 19930H0878B1975 - 5 -
1 SEC. 2 1701. DEFINITIONS. 3 § 1701. DEFINITIONS. 4 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER 5 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 6 CONTEXT CLEARLY INDICATES OTHERWISE: 7 "AUTHORITY." ANY BODY CORPORATE AND POLITIC CREATED UNDER 8 THIS CHAPTER OR CREATED UNDER THE FORMER PROVISIONS OF ARTICLE 9 III OF THE ACT OF JANUARY 22, 1968 (P.L.42, NO.8), KNOWN AS THE 10 PENNSYLVANIA URBAN MASS TRANSPORTATION LAW, OR THE FORMER 11 PROVISIONS OF CHAPTER 15 (RELATING TO METROPOLITAN 12 TRANSPORTATION AUTHORITIES) AND CONTINUED UNDER THIS CHAPTER. 13 "BOARD." THE GOVERNING AND POLICYMAKING BODY OF AN 14 AUTHORITY. 15 "BONDS." NOTES, BONDS, BOND ANTICIPATION NOTES, REFUNDING 16 NOTES AND BONDS, INTERIM CERTIFICATES, DEBENTURES AND OTHER 17 EVIDENCES OF INDEBTEDNESS OR OBLIGATIONS WHICH AN AUTHORITY IS 18 AUTHORIZED TO ISSUE UNDER THIS CHAPTER. 19 "CASH FLOW DEFICIT." A CASH DEFICIT OCCURRING SOLELY BECAUSE 20 REVENUES AND EXPENDITURES, EVEN WHEN IN BALANCE ON A FISCAL YEAR 21 BASIS OR WITH RESPECT TO ANY OTHER PERIOD OF COMPUTATION, ARE 22 NOT RECEIVED AND DISBURSED AT EQUIVALENT RATES THROUGHOUT THE 23 FISCAL YEAR OR OTHER PERIOD OF COMPUTATION. 24 "COMPREHENSIVE TRANSPORTATION PLAN." A COMPREHENSIVE 25 STATEMENT, CONSISTING OF MAPS, CHARTS AND TEXTUAL MATTER, OF AN 26 AUTHORITY'S POLICIES, STRATEGIES AND OBJECTIVES FOR THE 27 DEVELOPMENT OF THE TRANSPORTATION SYSTEM CONSISTENT WITH THE 28 LEGISLATIVE FINDINGS AND DECLARED POLICY OF THIS CHAPTER AND THE 29 RIGHTS, POWERS AND DUTIES OF THE AUTHORITY. 30 "DEPARTMENT." THE DEPARTMENT OF TRANSPORTATION OF THE 19930H0878B1975 - 6 -
1 COMMONWEALTH. 2 "FEDERAL AGENCY." THE FEDERAL GOVERNMENT, THE PRESIDENT OF 3 THE UNITED STATES AND ANY DEPARTMENT OR CORPORATION, AGENCY OR 4 INSTRUMENTALITY, HERETOFORE OR HEREAFTER CREATED, DESIGNATED OR 5 ESTABLISHED BY THE FEDERAL GOVERNMENT. 6 "GOVERNMENT AGENCY." THE GOVERNOR, DEPARTMENTS, BOARDS, 7 COMMISSIONS, AUTHORITIES AND OTHER OFFICERS AND AGENCIES OF THIS 8 COMMONWEALTH, INCLUDING, BUT NOT LIMITED TO, THOSE WHICH ARE NOT 9 SUBJECT TO THE POLICY SUPERVISION AND CONTROL OF THE GOVERNOR, 10 ANY POLITICAL SUBDIVISION, MUNICIPALITY, MUNICIPAL OR OTHER 11 LOCAL AUTHORITY AND ANY OFFICER OR AGENCY OF ANY SUCH POLITICAL 12 SUBDIVISION OR LOCAL AUTHORITY. THE TERM DOES NOT INCLUDE ANY 13 COURT OR OTHER OFFICER OR AGENCY OF THE UNIFIED JUDICIAL SYSTEM 14 OR THE GENERAL ASSEMBLY OR ITS OFFICERS AND AGENCIES. 15 "GOVERNMENT OBLIGATIONS." 16 (1) DIRECT OBLIGATIONS OF, OR OBLIGATIONS THE PRINCIPAL 17 OF AND INTEREST ON WHICH ARE UNCONDITIONALLY GUARANTEED BY, 18 THE FEDERAL GOVERNMENT, INCLUDING, BUT NOT LIMITED TO, 19 EVIDENCES OF A DIRECT OWNERSHIP INTEREST IN FUTURE INTEREST 20 OR PRINCIPAL PAYMENTS ON OBLIGATIONS ISSUED OR GUARANTEED BY 21 THE FEDERAL GOVERNMENT, WHICH OBLIGATIONS ARE HELD IN A 22 CUSTODY ACCOUNT BY A CUSTODIAN UNDER THE TERMS OF A CUSTODY 23 AGREEMENT. 24 (2) THE TERM INCLUDES OBLIGATIONS ISSUED BY ANY STATE OF 25 THE UNITED STATES OR ANY POLITICAL SUBDIVISION, PUBLIC 26 INSTRUMENTALITY OR PUBLIC AUTHORITY OF ANY STATE OF THE 27 UNITED STATES, PROVISION FOR THE FULL AND TIMELY PAYMENT OF 28 THE PRINCIPAL OR PREMIUM OF AND INTEREST ON WHICH SHALL HAVE 29 BEEN MADE BY DEPOSIT WITH A TRUSTEE OR ESCROW AGENT, UNDER AN 30 IRREVOCABLE SECURITY AGREEMENT, OF OBLIGATIONS DESCRIBED IN 19930H0878B1975 - 7 -
1 PARAGRAPH (1). 2 "LEGISLATIVE BODY." THE TERM SHALL MEAN, IN COUNTIES OF THE 3 FIRST CLASS, THE CITY COUNCIL, IN THE OTHER COUNTIES, THE BOARD 4 OF COUNTY COMMISSIONERS OR THE COUNTY COUNCIL AND, IN THE OTHER 5 MUNICIPALITIES, THAT BODY AUTHORIZED BY LAW TO ENACT ORDINANCES. 6 "MAJORITY." ANY WHOLE NUMBER CONSTITUTING MORE THAN HALF OF 7 THE TOTAL NUMBER. 8 "MASTER TRUST INDENTURE." A TRUST INDENTURE, TRUST AGREEMENT 9 OR DEED OF TRUST PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS 10 GUARANTEED ON A JOINT AND SEVERAL BASIS BY A GROUP OF OBLIGATED 11 ISSUERS. 12 "MAYOR." THE CHIEF EXECUTIVE OFFICER OF ANY FIRST CLASS CITY 13 IN ANY FIRST CLASS COUNTY. 14 "METROPOLITAN AREA." ALL OF THE TERRITORY WITHIN THE 15 BOUNDARIES OF ANY COUNTY OF THE FIRST CLASS AND ALL OTHER 16 COUNTIES LOCATED IN WHOLE OR IN PART WITHIN 20 MILES OF THE 17 FIRST CLASS COUNTY. 18 "MUNICIPALITY." ANY CITY, COUNTY, BOROUGH, INCORPORATED 19 TOWN, TOWNSHIP OR OTHER POLITICAL SUBDIVISION. THE TERMS 20 "MUNICIPALITY" AND "POLITICAL SUBDIVISION" SHALL HAVE THE SAME 21 MEANING WHEN USED IN THIS CHAPTER. 22 "OBLIGEE OF AN AUTHORITY." ANY HOLDER OR OWNER OF ANY BOND 23 OF AN AUTHORITY OR ANY TRUSTEE OR OTHER FIDUCIARY FOR ANY SUCH 24 HOLDER OR ANY PROVIDER OF A LETTER OF CREDIT, POLICY OF 25 MUNICIPAL BOND INSURANCE OR OTHER CREDIT ENHANCEMENT OR 26 LIQUIDITY FACILITY FOR BONDS OF AN AUTHORITY. 27 "PERSON." THE TERM SHALL MEAN AND INCLUDE CORPORATIONS, 28 PARTNERSHIPS, ASSOCIATIONS, FEDERAL AGENCIES, THE COMMONWEALTH, 29 GOVERNMENT AGENCIES AND OTHER ENTITIES, AS WELL AS NATURAL 30 PERSONS. 19930H0878B1975 - 8 -
1 "POLITICAL SUBDIVISION." ANY COUNTY, CITY, BOROUGH, 2 INCORPORATED TOWN, TOWNSHIP, SCHOOL DISTRICT, VOCATIONAL SCHOOL 3 DISTRICT AND COUNTY INSTITUTION DISTRICT. 4 "PROJECT." ANY STRUCTURE, FACILITY OR UNDERTAKING WHICH AN 5 AUTHORITY IS AUTHORIZED TO ACQUIRE, CONSTRUCT, IMPROVE, LEASE, 6 MAINTAIN, OPERATE, CONTRACT FOR OR OTHERWISE FUNCTION WITH 7 RESPECT TO, UNDER THE PROVISIONS OF THIS OR ANY OTHER ACT, 8 INCLUDING, BUT NOT LIMITED TO, ALL WORK AND MATERIAL INCIDENTAL 9 THERETO AND ALL COSTS THEREOF, INCLUDING ALL AMOUNTS NECESSARY 10 TO PLACE THE PROJECT INTO OPERATION. 11 "PUBLIC OFFICIAL." AN ELECTED OFFICIAL IN THE EXECUTIVE, 12 LEGISLATIVE OR JUDICIAL BRANCH OF THE COMMONWEALTH OR ANY 13 POLITICAL SUBDIVISION THEREOF, PROVIDED THAT IT SHALL NOT 14 INCLUDE MEMBERS OF ADVISORY BOARDS THAT HAVE NO AUTHORITY TO 15 EXPEND PUBLIC FUNDS OTHER THAN REIMBURSEMENT FOR PERSONAL 16 EXPENSES OR TO OTHERWISE EXERCISE THE POWER OF THE COMMONWEALTH 17 OR ANY POLITICAL SUBDIVISION THEREOF. 18 "QUALIFIED FINANCIAL INSTITUTION." A BANK, BANK AND TRUST 19 COMPANY, TRUST COMPANY, NATIONAL BANKING ASSOCIATION, INSURANCE 20 COMPANY OR OTHER FINANCIAL SERVICES COMPANY WHOSE UNSECURED 21 LONG-TERM DEBT OBLIGATIONS, IN THE CASE OF A BANK, TRUST 22 COMPANY, NATIONAL BANKING ASSOCIATION OR OTHER FINANCIAL 23 SERVICES COMPANY, OR WHOSE CLAIMS PAYING ABILITIES, IN THE CASE 24 OF AN INSURANCE COMPANY, ARE RATED IN ANY OF THE THREE HIGHEST 25 RATING CATEGORIES, WITHOUT REFERENCE TO SUBCATEGORIES, BY A 26 RATING AGENCY. FOR PURPOSES OF THIS DEFINITION, THE TERM 27 "FINANCIAL SERVICES COMPANY" SHALL INCLUDE ANY INVESTMENT 28 BANKING FIRM OR ANY AFFILIATE OR DIVISION THEREOF WHICH MAY BE 29 LEGALLY AUTHORIZED TO ENTER INTO THE TRANSACTIONS DESCRIBED IN 30 THIS CHAPTER PERTAINING, APPLICABLE OR LIMITED TO A QUALIFIED 19930H0878B1975 - 9 -
1 FINANCIAL INSTITUTION. 2 "QUALIFIED MAJORITY." A MAJORITY OF THE GOVERNING BODY OF AN 3 AUTHORITY WHICH INCLUDES FOUR OF THE FIVE MEMBERS APPOINTED 4 UNDER SECTION 1713(A)(1) AND (2) (RELATING TO APPOINTMENT OF 5 BOARD MEMBERS). 6 "RATING AGENCY." 7 (1) THE TERM INCLUDES THE FOLLOWING: 8 (I) STANDARD & POOR'S CORPORATION AND ANY SUCCESSOR 9 THERETO. 10 (II) MOODY'S INVESTORS SERVICE AND ANY SUCCESSOR 11 THERETO. 12 (III) FITCH INVESTORS SERVICE, INC., AND ANY 13 SUCCESSOR THERETO. 14 (2) IF THE RATING AGENCIES CITED IN PARAGRAPH (1) SHALL 15 NO LONGER PERFORM THE FUNCTIONS OF A SECURITIES RATING 16 SERVICE, THE TERM SHALL MEAN ANY OTHER NATIONALLY RECOGNIZED 17 RATING SERVICE OR SERVICES. 18 "REAL ESTATE-RELATED MATTER." A TRANSACTION OR AGREEMENT 19 WHICH INVOLVES ANY FEE, LEASEHOLD OR OTHER ESTATE OR INTEREST 20 IN, OVER OR UNDER REAL PROPERTY IN WHICH THE AUTHORITY HAS AN 21 INTEREST OR WISHES TO ACQUIRE AN INTEREST, INCLUDING, BUT NOT 22 LIMITED TO, STRUCTURES, FIXTURES AND OTHER IMPROVEMENTS AND 23 INTERESTS WHICH BY CUSTOM, USAGE OR LAW PASS WITH THE CONVEYANCE 24 OF REAL PROPERTY THOUGH NOT DESCRIBED IN THE CONTRACT OF SALE OR 25 INSTRUMENT OF CONVEYANCE. THE TERM INCLUDES PARCELS WITH OR 26 WITHOUT UPPER OR LOWER BOUNDARIES AND SPACES THAT MAY BE FILLED 27 WITH AIR OR WATER AND INCLUDES ANY CONTRACT, JOINT VENTURE, 28 MANAGEMENT OR BROKERAGE AGREEMENT WHICH IS RELATED DIRECTLY OR 29 INDIRECTLY THERETO. 30 "SUBSTANTIAL CHANGE." ANY CHANGE IN SYSTEM OPERATIONS 19930H0878B1975 - 10 -
1 DETERMINED TO BE SUBSTANTIAL BY THE BOARD. 2 "TRANSPORTATION SYSTEM." ALL PROPERTY, REAL AND PERSONAL, 3 USEFUL FOR THE TRANSPORTATION OF PASSENGERS FOR HIRE, INCLUDING, 4 BUT NOT LIMITED TO, POWER PLANTS, SUBSTATIONS, TERMINALS, 5 GARAGES, BRIDGES, TUNNELS, SUBWAYS, ELEVATED LINES, MONORAILS, 6 RAILROAD MOTIVE POWER, TRAINS, RAILROAD PASSENGER CARS AND 7 EQUIPMENT, BELT CONVEYORS, INCLINES, CAR BARNS, STREET CARS, 8 BUSES, RAILS, LINES, POLES, WIRES, STATIONS AND OFF-STREET 9 PARKING FACILITIES RIGHTS-OF-WAY, AS WELL AS THE FRANCHISES, 10 RIGHTS AND LICENSES THEREFOR, INCLUDING RIGHTS TO PROVIDE GROUP, 11 PARTY AND PARATRANSIT SERVICES. THE TERM SHALL NOT INCLUDE A 12 TAXICAB. 13 SUBCHAPTER B 14 AUTHORIZATION AND ORGANIZATION OF AUTHORITIES 15 SEC. 16 1711. CREATION OF METROPOLITAN TRANSPORTATION AUTHORITIES. 17 1712. GOVERNING AND POLICYMAKING BODY. 18 1713. APPOINTMENT OF BOARD MEMBERS. 19 1714. RESIGNATION AND VACANCIES. 20 1715. MEETINGS, QUORUM, OFFICERS AND RECORDS. 21 1716. SECRETARY, OATH, BOND. 22 1717. CONTROLLER. 23 1718. SIGNATURES. 24 1719. GENERAL MANAGER. 25 1720. TREASURER. 26 1721. COUNSEL TO THE BOARD. 27 1722. LEGAL DIVISION AND GENERAL COUNSEL. 28 1723. OTHER EMPLOYEES. 29 1724. PERSONNEL MATTERS. 30 1725. PUBLIC HEARINGS. 19930H0878B1975 - 11 -
1 1726. CITIZEN ADVISORY COMMITTEE. 2 1727. INVESTIGATIONS AND SUBPOENAS. 3 1728. CONFLICTS OF INTEREST. 4 § 1711. CREATION OF METROPOLITAN TRANSPORTATION AUTHORITIES. 5 (A) CREATION AND PURPOSE.--THERE IS HEREBY AUTHORIZED THE 6 CREATION OF A SEPARATE BODY CORPORATE AND POLITIC IN EACH 7 METROPOLITAN AREA, TO BE KNOWN AS THE TRANSPORTATION AUTHORITY 8 OF THAT METROPOLITAN AREA, EXTENDING TO AND INCLUDING ALL OF THE 9 TERRITORY IN THE METROPOLITAN AREA. AN AUTHORITY SHALL IN NO WAY 10 BE DEEMED TO BE AN INSTRUMENTALITY OF ANY CITY OR COUNTY OR 11 OTHER MUNICIPALITY OR ENGAGED IN THE PERFORMANCE OF A MUNICIPAL 12 FUNCTION, BUT SHALL EXERCISE THE PUBLIC POWERS OF THE 13 COMMONWEALTH AS AN AGENCY AND INSTRUMENTALITY THEREOF. AN 14 AUTHORITY SHALL EXIST FOR THE PURPOSE OF PLANNING, ACQUIRING, 15 HOLDING, CONSTRUCTING, IMPROVING, MAINTAINING, OPERATING, 16 LEASING, EITHER AS LESSOR OR LESSEE, AND OTHERWISE FUNCTIONING 17 WITH RESPECT TO A TRANSPORTATION SYSTEM IN THE METROPOLITAN AREA 18 AND OUTSIDE OF SUCH AREA, WHETHER WITHIN OR BEYOND THE 19 BOUNDARIES OF THIS COMMONWEALTH, TO THE EXTENT NECESSARY FOR THE 20 OPERATION OF AN INTEGRATED TRANSPORTATION SYSTEM AND FOR THE 21 PROVISION OF ALL GROUP AND PARTY SERVICES WHICH CAN BE PROVIDED 22 BY THE EXISTING TRANSPORTATION SYSTEM OR TRANSPORTATION SYSTEMS 23 SUBJECT TO ACQUISITION UNDER THIS CHAPTER. ALL SERVICES RENDERED 24 BY AN AUTHORITY OUTSIDE THE METROPOLITAN AREA SHALL BE PURSUANT 25 TO CERTIFICATES OF PUBLIC CONVENIENCE OR OTHER APPROPRIATE 26 AUTHORIZATION ISSUED TO IT BY THE PENNSYLVANIA PUBLIC UTILITY 27 COMMISSION OR OTHER APPROPRIATE REGULATORY AGENCY OF THE FEDERAL 28 GOVERNMENT OR ANY STATE. EXCEPT AS PROVIDED IN SUBSECTION (C), 29 AN AUTHORITY SHALL TRANSACT NO BUSINESS OR OTHERWISE BECOME 30 OPERATIVE UNTIL AND UNLESS A MAJORITY OF ITS BOARD SHALL HAVE 19930H0878B1975 - 12 -
1 BEEN QUALIFIED IN ACCORDANCE WITH THIS SUBCHAPTER. 2 (B) CERTIFICATE OF INCORPORATION.-- 3 (1) THE CERTIFICATION BY THE APPOINTING POWER OF EACH 4 BOARD MEMBER, AND THE CONSTITUTIONAL OATH OF OFFICE 5 SUBSCRIBED BY EACH MEMBER, SHALL BE FILED WITH THE DEPARTMENT 6 OF STATE, AND, EXCEPT AS PROVIDED IN SUBSECTION (C), UPON THE 7 RECEIPT OF INITIAL CERTIFICATIONS AND RESPECTIVE OATHS OF A 8 MAJORITY OF THE TOTAL NUMBER OF BOARD MEMBERS APPROPRIATE TO 9 ANY METROPOLITAN AREA, THE SECRETARY OF THE COMMONWEALTH 10 SHALL ISSUE A CERTIFICATE OF INCORPORATION. THIS CERTIFICATE 11 SHALL REFER TO THAT AUTHORITY BY THE NAME WHICH SHALL BE 12 DESIGNATED BY THE BOARD MEMBERS. 13 (2) IN ANY SUIT, ACTION OR PROCEEDING INVOLVING OR 14 RELATING TO THE VALIDITY OR ENFORCEMENT OF ANY CONTRACT OR 15 ACT OF AN AUTHORITY, A COPY OF THE CERTIFICATE OF 16 INCORPORATION, DULY CERTIFIED BY THE DEPARTMENT OF STATE, 17 SHALL BE ADMISSIBLE IN EVIDENCE AND SHALL BE CONCLUSIVE PROOF 18 OF THE LEGAL ESTABLISHMENT OF THE AUTHORITY. 19 (C) TRANSITION PROVISIONS.-- 20 (1) ANY AUTHORITY ESTABLISHED UNDER THE FORMER 21 PROVISIONS OF ARTICLE III OF THE ACT OF JANUARY 22, 1968 22 (P.L.42, NO.8), KNOWN AS THE PENNSYLVANIA URBAN MASS 23 TRANSPORTATION LAW, OR THE FORMER PROVISIONS OF CHAPTER 15 24 (RELATING TO METROPOLITAN TRANSPORTATION AUTHORITIES) SHALL 25 BE DEEMED, FOR ALL PURPOSES, TO BE AN AUTHORITY CREATED UNDER 26 THIS CHAPTER, SHALL CONTINUE IN EFFECT UNDER THIS CHAPTER AS 27 AN AUTHORITY OF THE COMMONWEALTH AND SHALL EXERCISE THOSE 28 POWERS, FUNCTIONS AND DUTIES AND BE GOVERNED BY THOSE 29 PROVISIONS APPLICABLE TO AN AUTHORITY CREATED UNDER THIS 30 CHAPTER. SUCH AUTHORITY ESTABLISHED UNDER THE FORMER 19930H0878B1975 - 13 -
1 PROVISIONS OF ARTICLE III OF THE PENNSYLVANIA URBAN MASS 2 TRANSPORTATION LAW OR THE FORMER PROVISIONS OF CHAPTER 15 3 SHALL BE DEEMED TO HAVE SATISFIED THE REQUIREMENTS OF 4 SUBSECTIONS (A) AND (B) CONCERNING THE ORGANIZATION OF AN 5 AUTHORITY UNDER THIS CHAPTER. NOTHING IN THIS CHAPTER SHALL 6 BE CONSTRUED TO ALTER OR MODIFY IN ANY RESPECT ANY CONTRACT 7 OR OTHER OBLIGATION OF SUCH AUTHORITY ENTERED INTO PRIOR TO 8 THE EFFECTIVE DATE OF THIS CHAPTER. 9 (2) AN AUTHORITY CREATED OR EXISTING UNDER THIS CHAPTER, 10 INCLUDING ANY AUTHORITY ESTABLISHED UNDER THE FORMER 11 PROVISIONS OF ARTICLE III OF THE PENNSYLVANIA URBAN MASS 12 TRANSPORTATION LAW OR THE FORMER PROVISIONS OF CHAPTER 15, 13 SHALL, WITHOUT THE NECESSITY OF ACTION OR ASSIGNMENT BY IT OR 14 ANY OTHER PERSON: 15 (I) CONTINUE IN THE RIGHTS AND RESPONSIBILITIES OF 16 ANY AUTHORITY EXISTING UNDER THE FORMER PROVISIONS OF THE 17 PENNSYLVANIA URBAN MASS TRANSPORTATION LAW OR THE FORMER 18 PROVISIONS OF CHAPTER 15 FOR ALL PURPOSES, INCLUDING, BUT 19 NOT LIMITED TO, RECEIPT OF ALL GRANTS, GIFTS, 20 APPROPRIATIONS, SUBSIDIES OR OTHER PAYMENTS; 21 (II) CONTINUE TO BE THE OWNER OF ANY REAL OR 22 PERSONAL PROPERTY AND ENJOY AND BE SUBJECT TO ANY AND ALL 23 RIGHTS AND RESPONSIBILITIES APPURTENANT THERETO OF ANY 24 AUTHORITY EXISTING UNDER THE FORMER PROVISIONS OF THE 25 PENNSYLVANIA URBAN MASS TRANSPORTATION LAW OR THE FORMER 26 PROVISIONS OF CHAPTER 15, INCLUDING, BUT NOT LIMITED TO, 27 ALL ASSETS, PROPERTY, REAL AND PERSONAL, TANGIBLE AND 28 INTANGIBLE, ALL EASEMENTS AND ALL EVIDENCES OF OWNERSHIP 29 OR OTHER INTEREST IN PART OR IN WHOLE, AND ALL RECORDS, 30 AND OTHER EVIDENCES PERTAINING THERETO; AND 19930H0878B1975 - 14 -
1 (III) CONTINUE TO BE OBLIGATED WITH RESPECT TO ALL 2 DEBT AND OTHER CONTRACTUAL OBLIGATIONS OF ANY AUTHORITY 3 EXISTING UNDER THE FORMER PROVISIONS OF THE PENNSYLVANIA 4 URBAN MASS TRANSPORTATION LAW OR THE FORMER PROVISIONS OF 5 CHAPTER 15. 6 (3) IT IS HEREBY DECLARED TO BE THE INTENT OF THE 7 GENERAL ASSEMBLY THAT AN AUTHORITY CREATED OR EXISTING UNDER 8 THIS CHAPTER, INCLUDING ANY AUTHORITY ESTABLISHED UNDER THE 9 FORMER PROVISIONS OF ARTICLE II OF THE PENNSYLVANIA URBAN 10 MASS TRANSPORTATION LAW OR THE FORMER PROVISIONS OF CHAPTER 11 15, AND THE MEMBERS, OFFICERS, OFFICIALS AND EMPLOYEES OF ANY 12 OF THEM, SHALL CONTINUE TO ENJOY SOVEREIGN AND OFFICIAL 13 IMMUNITY, AS PROVIDED IN 1 PA.C.S. § 2310 (RELATING TO 14 SOVEREIGN IMMUNITY REAFFIRMED; SPECIFIC WAIVER), AND SHALL 15 REMAIN IMMUNE FROM SUIT EXCEPT AS PROVIDED BY AND SUBJECT TO 16 THE PROVISION OF 42 PA.C.S. §§ 8501 (RELATING TO DEFINITIONS) 17 THROUGH 8528 (RELATING TO LIMITATIONS ON DAMAGES). 18 § 1712. GOVERNING AND POLICYMAKING BODY. 19 (A) TRANSPORTATION BOARD.--THE GOVERNING AND POLICYMAKING 20 BODY OF AN AUTHORITY SHALL BE A BOARD, TO BE KNOWN AS THE 21 TRANSPORTATION BOARD OF THE METROPOLITAN AREA, CONSISTING OF 22 MEMBERS TO BE APPOINTED AS PROVIDED IN SECTION 1713 (RELATING TO 23 APPOINTMENT OF BOARD MEMBERS), WHO, EXCEPT FOR THE APPOINTEE OF 24 THE GOVERNOR, MUST BE RESIDENTS OF THE METROPOLITAN AREA. NO 25 BOARD MEMBER SHALL BE ALLOWED ANY FEES, PERQUISITES OR 26 EMOLUMENTS, REWARD OR COMPENSATION FOR HIS SERVICES AS A MEMBER 27 OR OFFICER OF AN AUTHORITY, BUT THE BOARD MEMBER SHALL BE 28 REIMBURSED FOR ACTUAL EXPENSES INCURRED IN THE PERFORMANCE OF 29 HIS DUTIES. 30 (B) LIMIT ON EXERCISE OF POWERS.--THE BOARD SHALL NOT 19930H0878B1975 - 15 -
1 INVOLVE ITSELF IN THE DAY-TO-DAY ADMINISTRATION OF THE 2 AUTHORITY'S BUSINESS. IT SHALL LIMIT ITS EXERCISE OF POWERS TO 3 SUCH AREAS OF DISCRETION OR POLICY AS THE FUNCTIONS AND PROGRAMS 4 OF THE AUTHORITY, ANY SUBSTANTIAL CHANGE IN SYSTEM OPERATIONS, 5 THE AUTHORITY'S OPERATING AND CAPITAL BUDGETS, THE AUTHORITY'S 6 STANDARD OF SERVICES, UTILIZATION OF TECHNOLOGY, THE 7 ORGANIZATIONAL STRUCTURE AND, SUBJECT TO THE PROVISIONS OF THIS 8 CHAPTER, THE SELECTION OF AND THE ESTABLISHMENT OF SALARIES FOR 9 PERSONNEL. 10 (C) PUBLIC OFFICIALS PROHIBITED.--NO MEMBER APPOINTED TO THE 11 BOARD SUBSEQUENT TO THE EFFECTIVE DATE OF THIS CHAPTER SHALL BE 12 A PUBLIC OFFICIAL. ANY PUBLIC OFFICIAL CURRENTLY SERVING AS A 13 MEMBER OF THE BOARD ON THE EFFECTIVE DATE OF THIS CHAPTER SHALL 14 BE EXEMPT FROM THIS PROHIBITION. 15 § 1713. APPOINTMENT OF BOARD MEMBERS. 16 (A) APPOINTMENT.--EXCEPT AS PROVIDED IN SUBSECTION (D) WITH 17 RESPECT TO THE CONTINUATION IN OFFICE OF MEMBERS OF THE BOARD OF 18 ANY AUTHORITY ESTABLISHED UNDER THE FORMER PROVISIONS OF ARTICLE 19 III OF THE ACT OF JANUARY 22, 1968 (P.L.42, NO.8), KNOWN AS THE 20 PENNSYLVANIA URBAN MASS TRANSPORTATION LAW, OR THE FORMER 21 PROVISIONS OF CHAPTER 15 (RELATING TO METROPOLITAN 22 TRANSPORTATION AUTHORITIES) AT ANY TIME AFTER THE EFFECTIVE DATE 23 OF THIS CHAPTER: 24 (1) GUBERNATORIAL APPOINTMENTS.--THE GOVERNOR MAY 25 APPOINT AS A MEMBER OF THE BOARD ONE PERSON, WHO MAY BE AN EX 26 OFFICIO APPOINTEE FROM AMONG THE VARIOUS OFFICIALS IN THIS 27 COMMONWEALTH AND WHOSE TERM AS A BOARD MEMBER SHALL RUN 28 CONCURRENTLY WITH THAT OF HIS COMMONWEALTH POSITION, IF ANY, 29 OR THE TERM OF THE APPOINTING GOVERNOR, WHICHEVER IS SHORTER. 30 (2) LEGISLATIVE APPOINTMENTS.--THE MAJORITY LEADER AND 19930H0878B1975 - 16 -
1 THE MINORITY LEADER OF THE SENATE AND THE MAJORITY LEADER AND 2 THE MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES MAY EACH 3 APPOINT ONE PERSON TO SERVE AS A BOARD MEMBER, WHOSE TERM 4 SHALL BE CONCURRENT WITH THE TERM AND WHO SHALL SERVE AT THE 5 PLEASURE OF THE APPOINTING LEGISLATIVE LEADER. 6 (3) LOCAL APPOINTMENTS.-- 7 (I) THE COUNTY COMMISSIONERS OR THE COUNTY COUNCIL 8 IN EACH COUNTY AND, IN ANY COUNTY OF THE FIRST CLASS 9 CONTAINING A CITY OF THE FIRST CLASS, THE MAYOR, WITH THE 10 APPROVAL OF THE CITY COUNCIL, MAY APPOINT ONE PERSON FROM 11 EACH COUNTY TO SERVE AS BOARD MEMBERS. 12 (II) THE COUNTY COMMISSIONERS OR THE COUNTY COUNCIL 13 IN EACH COUNTY AND, IN ANY COUNTY OF THE FIRST CLASS 14 CONTAINING A CITY OF THE FIRST CLASS, THE MAYOR, WITH THE 15 APPROVAL OF CITY COUNCIL, MAY APPOINT ADDITIONAL MEMBERS 16 BASED UPON EACH COUNTY'S SHARE OF FINANCIAL ASSISTANCE TO 17 THE AUTHORITY. FOR EACH 15% SHARE OF LOCAL FUNDING 18 PURSUANT TO SECTION 1302(2)(III) (RELATING TO PROGRAM 19 AUTHORIZATIONS), ONE ADDITIONAL MEMBER MAY BE APPOINTED. 20 INITIALLY, DETERMINATION OF THESE LOCAL CONTRIBUTIONS 21 SHALL BE BASED UPON LOCAL FUNDING ATTRIBUTED TO EACH 22 COUNTY BY THE AUTHORITY FOR THE 1991-1992 FISCAL YEAR. IN 23 SUBSEQUENT YEARS, THIS DETERMINATION SHALL BE BASED UPON 24 THE AUTHORITY'S CERTIFICATION OF EACH COUNTY'S SHARE OF 25 LOCAL FUNDING PROVIDED DURING THE PRIOR FISCAL YEAR. THE 26 AUTHORITY SHALL ANNUALLY PROVIDE THIS INFORMATION WHEN 27 SUBMITTING ITS REPORT TO THE DEPARTMENT PURSUANT TO 28 SECTION 1741(A)(24) (RELATING TO GENERAL POWERS). ANY 29 CHANGE IN COUNTY FUNDING THAT WOULD RESULT IN THE 30 ADDITION OR REMOVAL OF MEMBERS FROM THE BOARD WOULD TAKE 19930H0878B1975 - 17 -
1 EFFECT IN THE FISCAL YEAR FOLLOWING THE AUTHORITY'S 2 CERTIFICATION OF THE CHANGE TO THE DEPARTMENT. 3 (B) SUCCESSOR.--AT THE EXPIRATION OF THE TERM OF ANY BOARD 4 MEMBER, HIS SUCCESSOR SHALL BE APPOINTED BY THE SAME POWER WHO 5 APPOINTED THAT BOARD MEMBER, FOR A TERM OF FIVE YEARS FROM THE 6 EXPIRATION DATE. 7 (C) CERTIFICATION AND OATH OF OFFICE.--THE APPOINTING POWERS 8 SHALL CERTIFY THEIR RESPECTIVE APPOINTMENTS TO THE SECRETARY OF 9 THE COMMONWEALTH. WITHIN 30 DAYS AFTER CERTIFICATION OF HIS 10 APPOINTMENT AND BEFORE ENTERING UPON THE DUTIES OF HIS OFFICE, 11 EACH MEMBER OF THE BOARD SHALL TAKE AND SUBSCRIBE THE 12 CONSTITUTIONAL OATH OF OFFICE AND FILE IT IN THE OFFICE OF THE 13 SECRETARY OF THE COMMONWEALTH. 14 (D) TRANSITION PROVISION.--WITH RESPECT TO THE BOARD OF ANY 15 AUTHORITY ESTABLISHED UNDER THE FORMER PROVISIONS OF ARTICLE III 16 OF THE PENNSYLVANIA URBAN MASS TRANSPORTATION LAW OR THE FORMER 17 PROVISIONS OF CHAPTER 15, ALL MEMBERS OF THE BOARD OF THE 18 AUTHORITY SHALL BE DEEMED TO BE MEMBERS OF THE BOARD OF AN 19 AUTHORITY CREATED UNDER THIS CHAPTER AND SHALL CONTINUE IN 20 OFFICE UNTIL THEIR RESPECTIVE TERMS OF OFFICE WOULD HAVE EXPIRED 21 AS PROVIDED FOR IN THE FORMER PROVISIONS OF THE PENNSYLVANIA 22 URBAN MASS TRANSPORTATION LAW OR IN SECTION 1517 (RELATING TO 23 APPOINTMENT OF BOARD MEMBERS) AND SHALL EXERCISE THE POWERS, 24 FUNCTIONS AND DUTIES OF A BOARD OF AN AUTHORITY CREATED UNDER 25 THIS CHAPTER. 26 (E) EXPIRATION OF TERMS OF CURRENT MEMBERS.--THIRTY DAYS 27 FROM THE EFFECTIVE DATE OF THIS CHAPTER, THE TERMS OF ALL BOARD 28 MEMBERS CURRENTLY SERVING UNDER SECTION 1517(A)(2) (RELATING TO 29 APPOINTMENT OF BOARD MEMBERS) SHALL EXPIRE. AFTER THAT DATE, 30 APPOINTMENTS MAY BE MADE TO THE BOARD UNDER SUBSECTION (A)(3). 19930H0878B1975 - 18 -
1 § 1714. RESIGNATION AND VACANCIES. 2 (A) REMOVAL AND VACANCY.--MEMBERS OF THE BOARD SHALL HOLD 3 OFFICE UNTIL THEIR RESPECTIVE SUCCESSORS HAVE BEEN APPOINTED AND 4 HAVE QUALIFIED. THE APPOINTING POWER MAY REMOVE ANY MEMBER OF 5 THE BOARD APPOINTED BY THAT APPOINTING POWER, BUT ONLY IN CASE 6 OF INCOMPETENCY, NEGLECT OF DUTY OR MALFEASANCE IN OFFICE. NO 7 MEMBER SHALL BE THUS REMOVED EXCEPT AFTER HAVING BEEN GIVEN A 8 COPY OF THE CHARGES AGAINST THE MEMBER AND AN OPPORTUNITY TO BE 9 PUBLICLY HEARD, AT A PLACE IN THE METROPOLITAN AREA, IN PERSON 10 OR BY COUNSEL, IN HIS OWN DEFENSE UPON NOT LESS THAN TEN DAYS' 11 WRITTEN NOTICE. IN CASE OF FAILURE TO QUALIFY WITHIN THE TIME 12 REQUIRED OR OF ABANDONMENT OF HIS OFFICE OR IN CASE OF DEATH, 13 CONVICTION OF A FELONY OR REMOVAL FROM OFFICE, THAT OFFICE SHALL 14 BECOME VACANT. 15 (B) ABANDONMENT.--A MEMBER SHALL BE DEEMED TO HAVE ABANDONED 16 HIS OFFICE UPON FAILURE TO ATTEND ANY REGULAR OR SPECIAL MEETING 17 OF THE BOARD, WITHOUT EXCUSE APPROVED BY RESOLUTION OF THE 18 BOARD, FOR A PERIOD OF FOUR MONTHS OR UPON REMOVAL OF HIS 19 RESIDENCE FROM THE METROPOLITAN AREA. 20 (C) FILLING OF VACANCY.--EACH VACANCY SHALL BE FILLED FOR 21 THE UNEXPIRED TERM BY APPOINTMENT IN LIKE MANNER AND WITH LIKE 22 REGARD AS TO THE PLACE OF RESIDENCE OF THE APPOINTEE AS IN CASE 23 OF EXPIRATION OF THE TERM OF A MEMBER OF THE BOARD. 24 (D) APPEAL.--A MEMBER REMOVED FOR INCOMPETENCY, NEGLECT OF 25 DUTY OR MALFEASANCE IN OFFICE SHALL HAVE THE RIGHT TO APPEAL 26 THAT REMOVAL TO THE COURT OF COMMON PLEAS OF THE COUNTY FOR 27 WHICH THAT MEMBER WAS APPOINTED, BUT ONLY ON THE GROUND OF ERROR 28 OF LAW OR MANIFEST AND FLAGRANT ABUSE OF DISCRETION. 29 § 1715. MEETINGS, QUORUM, OFFICERS AND RECORDS. 30 (A) MEETINGS.--REGULAR MEETINGS OF THE BOARD SHALL BE HELD 19930H0878B1975 - 19 -
1 IN THE METROPOLITAN AREA AT LEAST ONCE IN EACH CALENDAR MONTH 2 EXCEPT JULY OR AUGUST, THE TIME AND PLACE OF THE MEETINGS TO BE 3 FIXED BY THE BOARD. A MAJORITY OF THE BOARD SHALL CONSTITUTE A 4 QUORUM FOR THE TRANSACTION OF BUSINESS. ALL ACTION OF THE BOARD 5 SHALL BE BY RESOLUTION, AND THE AFFIRMATIVE VOTE OF A MAJORITY 6 OF ALL THE MEMBERS SHALL BE NECESSARY FOR THE ADOPTION OF ANY 7 RESOLUTION. NO ACTION BY THE BOARD TO WHICH AN EXPRESS OBJECTION 8 HAS BEEN MADE, UNDER THIS SECTION, BY A BOARD MEMBER OR MEMBERS 9 REPRESENTING A COUNTY OR COUNTIES HAVING ONE-THIRD OR MORE OF 10 THE POPULATION OF THE METROPOLITAN AREA, AS DETERMINED BY THE 11 MOST RECENT DECENNIAL CENSUS, SHALL BE CARRIED UNLESS SUPPORTED 12 AT A SUBSEQUENT REGULAR MEETING OF THE BOARD BY THE VOTES OF AT 13 LEAST THREE-QUARTERS OF THE MEMBERSHIP OF THE BOARD. IN CASE OF 14 DISAGREEMENT BETWEEN MEMBERS REPRESENTING THE SAME COUNTY, EACH 15 MEMBER SHALL BE DEEMED TO REPRESENT ONE-HALF OF THE POPULATION 16 OF THAT COUNTY. 17 (B) OFFICERS.--THE BOARD SHALL ELECT FROM AMONG ITS MEMBERS 18 A CHAIRMAN AND A VICE CHAIRMAN, EACH OF WHOM SHALL SERVE FOR A 19 TERM OF ONE YEAR AND UNTIL HIS SUCCESSOR SHALL HAVE BEEN ELECTED 20 AND QUALIFIED AND WHO SHALL PERFORM THOSE DUTIES AS THE BOARD 21 SHALL, BY RESOLUTION, DETERMINE. 22 (C) PUBLIC MEETINGS AND RECORDS.-- 23 (1) THE BOARD SHALL BE SUBJECT TO THE ACT OF JUNE 21, 24 1957 (P.L.390, NO.212), REFERRED TO AS THE RIGHT-TO-KNOW LAW, 25 AND THE ACT OF JULY 3, 1986 (P.L.388, NO.84), KNOWN AS THE 26 SUNSHINE ACT. 27 (2) NOTWITHSTANDING THE PROVISIONS OF SECTION 4 OF THE 28 SUNSHINE ACT, ONE OR MORE PERSONS MAY PARTICIPATE IN A 29 MEETING OF THE BOARD, OR OF ANY COMMITTEE THEREOF, BY MEANS 30 OF CONFERENCE TELEPHONE OR SIMILAR COMMUNICATIONS EQUIPMENT 19930H0878B1975 - 20 -
1 BY MEANS OF WHICH ALL PERSONS PARTICIPATING IN THE MEETING 2 CAN HEAR EACH OTHER, INCLUDING, IN THE CASE OF A MEETING OPEN 3 TO THE PUBLIC, ALL OTHER PERSONS PRESENT AT THE PLACE OF 4 MEETING DESIGNATED BY PUBLIC NOTICE. PARTICIPATION BY ONE OR 5 MORE MEMBERS OF THE BOARD IN A MEETING PURSUANT TO THIS 6 SUBSECTION SHALL CONSTITUTE PRESENCE IN PERSON AT THE 7 MEETING. 8 § 1716. SECRETARY, OATH, BOND. 9 THE BOARD SHALL APPOINT A SECRETARY, WHO SHALL NOT BE A 10 MEMBER OF THE BOARD, TO HOLD OFFICE AT THE PLEASURE OF THE BOARD 11 AND SHALL FIX HIS DUTIES AND COMPENSATION. THE SECRETARY SHALL 12 NOT BE ENGAGED IN ANY OTHER BUSINESS OR EMPLOYMENT DURING HIS 13 TENURE OF OFFICE AS SECRETARY OF THE BOARD. BEFORE ENTERING UPON 14 THE DUTIES OF THE OFFICE OF SECRETARY, HE SHALL TAKE AND 15 SUBSCRIBE THE CONSTITUTIONAL OATH OF OFFICE. OFFICERS AND 16 EMPLOYEES OF THE AUTHORITY, AND THOSE MEMBERS OF THE BOARD AS 17 THE BOARD MAY DETERMINE, SHALL EXECUTE CORPORATE SURETY BONDS 18 CONDITIONED UPON THE FAITHFUL PERFORMANCE OF THEIR RESPECTIVE 19 DUTIES. A BLANKET FORM OF SURETY BOND MAY BE USED FOR THIS 20 PURPOSE IF THE BOARD DEEMS THIS PROCEDURE TO BE PRACTICAL AND 21 PRUDENT. THE OBLIGATION OF THE SURETIES SHALL NOT EXTEND TO ANY 22 LOSS SUSTAINED BY THE INSOLVENCY, FAILURE OR CLOSING OF ANY 23 NATIONAL OR STATE BANK, BANK AND TRUST COMPANY OR TRUST COMPANY 24 WHEREIN FUNDS OF THE AUTHORITY HAVE BEEN DEPOSITED IF THE BANK, 25 BANK AND TRUST COMPANY OR TRUST COMPANY HAS BEEN APPROVED BY THE 26 BOARD AS A DEPOSITORY FOR THESE FUNDS. THE OATHS OF OFFICE AND 27 THE SURETY BOND OR BONDS SHALL BE FILED IN THE PRINCIPAL OFFICE 28 OF THE AUTHORITY. 29 § 1717. CONTROLLER. 30 THE BOARD SHALL APPOINT A CONTROLLER, WHO SHALL NOT BE A 19930H0878B1975 - 21 -
1 MEMBER OF THE BOARD, TO HOLD OFFICE AT THE PLEASURE OF THE BOARD 2 AND SHALL FIX HIS COMPENSATION. THE CONTROLLER SHALL CONSULT 3 WITH, ADVISE AND ASSIST THE BOARD ON FINANCIAL AND ACCOUNTING 4 MATTERS, INCLUDING, BUT NOT LIMITED TO, THE AUTHORITY'S SYSTEM 5 OF INTERNAL CONTROLS, FINANCIAL REPORTS, CURRENT FINANCIAL 6 CONDITION AND SUCH OTHER FINANCIAL AND ACCOUNTING MATTERS WHICH 7 THE BOARD MAY DEEM APPROPRIATE. THE CONTROLLER SHALL SUBMIT AN 8 ANNUAL REPORT OF THE AUTHORITY'S FINANCIAL CONDITION WHICH SHALL 9 BE IN ADDITION TO ANY OTHER FINANCIAL REPORT REQUIRED BY THIS 10 CHAPTER TO THE BOARD, THE GENERAL MANAGER AND THE SECRETARY OF 11 TRANSPORTATION. THE CONTROLLER SHALL EXECUTE A CORPORATE SURETY 12 BOND AND, BEFORE ENTERING UPON THE DUTIES OF HIS OFFICE, SHALL 13 TAKE AND SUBSCRIBE THE CONSTITUTIONAL OATH OF OFFICE. 14 § 1718. SIGNATURES. 15 (A) FACSIMILE SIGNATURES.--WHENEVER THE BUSINESS OF THE 16 AUTHORITY REQUIRES THE AFFIXING OF THE SIGNATURE OF ANY OFFICER 17 OR EMPLOYEE OF THE AUTHORITY, THE USE OF A FACSIMILE SIGNATURE, 18 WHEN EXPRESSLY AUTHORIZED BY RESOLUTION OF THE BOARD, SHALL HAVE 19 THE SAME FORCE AND EFFECT AS AN ORIGINAL SIGNATURE. 20 (B) SIGNATURES OF OFFICERS CEASING TO HOLD OFFICE.--IN CASE 21 ANY OFFICER WHOSE SIGNATURE APPEARS UPON ANY CHECK, DRAFT, BOND, 22 CERTIFICATE OR INTEREST COUPON ISSUED UNDER THIS CHAPTER CEASES 23 TO HOLD OFFICE BEFORE THE DELIVERY THEREOF TO THE PAYEE OR THE 24 PURCHASER OF ANY BOND OR CERTIFICATE, THE OFFICER'S SIGNATURE 25 NEVERTHELESS SHALL BE VALID AND SUFFICIENT FOR ALL PURPOSES WITH 26 THE SAME EFFECT AS IF HE HAD REMAINED IN OFFICE UNTIL DELIVERY 27 THEREOF. 28 § 1719. GENERAL MANAGER. 29 THE BOARD SHALL, UPON THE APPROVAL OF A QUALIFIED MAJORITY, 30 APPOINT A GENERAL MANAGER, WHO SHALL BE THE CHIEF OPERATIONS 19930H0878B1975 - 22 -
1 OFFICER OF THE AUTHORITY AND WHO SHALL HAVE DEMONSTRATED THAT HE 2 IS COMPETENT AND EXPERIENCED IN THE AREA OF TRANSIT MANAGEMENT, 3 AND SHALL FIX HIS COMPENSATION. THE GENERAL MANAGER SHALL HAVE 4 THE POWER AND DUTY TO: 5 (1) MANAGE THE PROPERTIES OF THE AUTHORITY. 6 (2) ATTEND TO THE DAY-TO-DAY ADMINISTRATION, FISCAL 7 MANAGEMENT AND OPERATION OF THE AUTHORITY'S BUSINESS. 8 (3) APPOINT SUCH EMPLOYEES, IN CONSULTATION WITH THE 9 BOARD, AS HE DEEMS NECESSARY TO CONDUCT THE AFFAIRS OF HIS 10 OFFICE, SUBJECT TO THE PROVISIONS OF THIS CHAPTER. 11 (4) IMPLEMENT AND ENFORCE ALL RESOLUTIONS, RULES AND 12 REGULATIONS OF THE BOARD. 13 (5) SUBMIT TO THE BOARD, ACCORDING TO A SCHEDULE 14 ESTABLISHED BY IT, PERIODIC REPORTS SHOWING THE OVERALL STATE 15 OR CONDITION OF THE TRANSPORTATION SYSTEM ACCORDING TO 16 ESTABLISHED INDUSTRY PERFORMANCE STANDARDS. THESE REPORTS 17 SHALL BE CONSIDERED PUBLIC RECORDS. 18 (6) IMPLEMENT POLICIES ESTABLISHED BY THE BOARD. 19 § 1720. TREASURER. 20 THE GENERAL MANAGER SHALL APPOINT A TREASURER TO HOLD OFFICE 21 AT HIS PLEASURE. IN ADDITION TO THE DUTIES IMPOSED ON THE 22 TREASURER BY THIS CHAPTER, THE TREASURER SHALL PERFORM SUCH 23 OTHER DUTIES AS THE GENERAL MANAGER SHALL PRESCRIBE. THE 24 TREASURER SHALL EXECUTE A CORPORATE SURETY BOND AND, BEFORE 25 ENTERING UPON THE DUTIES OF HIS OFFICE, SHALL TAKE AND SUBSCRIBE 26 THE CONSTITUTIONAL OATH OF OFFICE. 27 § 1721. COUNSEL TO THE BOARD. 28 THE BOARD SHALL APPOINT A COUNSEL TO THE BOARD, WHO SHALL BE 29 AN ATTORNEY AT LAW ADMITTED TO PRACTICE BEFORE THE SUPREME COURT 30 OF PENNSYLVANIA AND WHO SHALL BE APPOINTED BY THE BOARD TO SERVE 19930H0878B1975 - 23 -
1 AT ITS DISCRETION. THE BOARD SHALL PAY THE COUNSEL TO THE BOARD 2 REASONABLE COMPENSATION FOR SERVICES ACTUALLY PERFORMED. THE 3 COUNSEL TO THE BOARD SHALL ADVISE THE BOARD IN ALL MATTERS 4 RELATING TO ITS OFFICIAL DUTIES AND SHALL, UPON THE APPROVAL OF 5 A QUALIFIED MAJORITY AND NOTWITHSTANDING ANY OTHER PROVISION OF 6 THIS CHAPTER, APPROVE ALL MATTERS RELATING TO BONDS AND 7 INDENTURES. 8 § 1722. LEGAL DIVISION AND GENERAL COUNSEL. 9 (A) ESTABLISHMENT AND OPERATION.--THE BOARD SHALL, UPON THE 10 APPROVAL OF A QUALIFIED MAJORITY, APPOINT A GENERAL COUNSEL WHO 11 SHALL BE AN ATTORNEY ADMITTED TO PRACTICE BEFORE THE SUPREME 12 COURT OF PENNSYLVANIA. THE GENERAL MANAGER, IN CONSULTATION WITH 13 THE BOARD, SHALL ESTABLISH A LEGAL DIVISION ADMINISTERED BY A 14 FULL-TIME GENERAL COUNSEL AND CONSISTING OF SUCH ATTORNEYS AND 15 OTHER EMPLOYEES AS THE GENERAL COUNSEL FROM TIME TO TIME SHALL 16 DETERMINE TO BE NECESSARY TO ADMINISTER THE LEGAL AFFAIRS OF THE 17 AUTHORITY, EXCEPT AS PROVIDED IN SECTION 1721 (RELATING TO 18 COUNSEL TO THE BOARD). THE LEGAL DIVISION SHALL PROSECUTE AND 19 DEFEND, SETTLE OR COMPROMISE ALL SUITS OR CLAIMS FOR AND ON 20 BEHALF OF THE AUTHORITY AND SHALL ADVISE THE GENERAL MANAGER IN 21 ALL MATTERS RELATING TO HIS OFFICIAL DUTIES. THE AUTHORITY SHALL 22 NOT BE CONSIDERED EITHER AN EXECUTIVE AGENCY OR AN INDEPENDENT 23 AGENCY FOR PURPOSES OF THE ACT OF OCTOBER 15, 1980 (P.L.950, 24 NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT, BUT SHALL 25 POSSESS THE SAME STATUS FOR SUCH PURPOSE AS THE AUDITOR GENERAL, 26 THE STATE TREASURER AND THE PENNSYLVANIA PUBLIC UTILITY 27 COMMISSION, EXCEPT THAT THE PROVISIONS OF SECTION 204(B) AND (F) 28 OF THE COMMONWEALTH ATTORNEYS ACT SHALL NOT APPLY TO THE 29 AUTHORITY AND, NOTWITHSTANDING THE PROVISIONS OF 42 PA.C.S. § 30 8525 (RELATING TO LEGAL ASSISTANCE), THE AUTHORITY THROUGH ITS 19930H0878B1975 - 24 -
1 COUNSEL SHALL DEFEND ACTIONS BROUGHT AGAINST THE AUTHORITY AND 2 ITS OFFICERS AND EMPLOYEES WHEN ACTING WITHIN THE SCOPE OF THEIR 3 OFFICIAL DUTIES. 4 (B) OTHER COUNSEL.--THE GENERAL COUNSEL MAY, FROM TIME TO 5 TIME, WITH THE APPROVAL OF A QUALIFIED MAJORITY, RETAIN SUCH 6 OTHER LEGAL COUNSEL ON SUCH TERMS AND FOR SUCH PURPOSES AS SHALL 7 BE DEEMED NECESSARY. NOTHING IN THIS SECTION OR IN SECTION 1721 8 SHALL BE CONSTRUED SO AS TO LIMIT THE POWER OF THE LEGAL OR 9 OTHER OFFICERS OF THE COUNTIES AND MUNICIPALITIES COMPRISING THE 10 METROPOLITAN AREA TO ACT IN BEHALF OF THE GENERAL MANAGER IN 11 THEIR OFFICIAL CAPACITIES WHEN REQUESTED TO DO SO BY THE GENERAL 12 MANAGER. 13 § 1723. OTHER EMPLOYEES. 14 (A) COLLECTIVE BARGAINING.--THE BOARD ACTING THROUGH THE 15 GENERAL MANAGER SHALL HAVE THE RIGHT TO BARGAIN COLLECTIVELY AND 16 ENTER INTO AGREEMENTS WITH LABOR ORGANIZATIONS. THE BOARD ACTING 17 THROUGH THE GENERAL MANAGER SHALL RECOGNIZE AND BE BOUND BY 18 EXISTING LABOR UNION AGREEMENTS WHERE THEY EXIST BETWEEN LABOR 19 UNIONS AND TRANSPORTATION COMPANIES THAT ARE ACQUIRED, 20 PURCHASED, CONDEMNED OR LEASED BY THE BOARD. IT SHALL DESIGNATE 21 THEIR DUTIES AND REQUIRE BONDS OF THOSE OF THEM AS THE BOARD MAY 22 DESIGNATE. 23 (B) COMPENSATION.--THE COMPENSATION OF THE GENERAL MANAGER, 24 COUNSEL TO THE BOARD, SECRETARY AND 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 GENERAL MANAGER SHALL ESTABLISH, WITHIN THESE 28 SALARY SCALES, COMPENSATION LEVELS BASED UPON WRITTEN APPRAISALS 29 OF PERFORMANCE FOR ALL EMPLOYEES UNDER HIS CONTROL. THE 30 SECRETARY AND THE CONTROLLER SHALL ESTABLISH, WITHIN THESE 19930H0878B1975 - 25 -
1 SALARY SCALES, COMPENSATION LEVELS BASED UPON WRITTEN APPRAISALS 2 OF PERFORMANCE FOR ALL EMPLOYEES IN THEIR RESPECTIVE OFFICES. 3 (C) OTHER OFFICES OR EMPLOYMENT.--WITH THE EXCEPTION OF THE 4 SECRETARY, ANY OF THE OFFICERS AND EMPLOYEES DESCRIBED IN 5 SUBSECTION (B) MAY BE APPOINTED, RETAINED, HIRED OR EMPLOYED ON 6 A PART-TIME BASIS AND MAY BE ENGAGED IN OTHER BUSINESS OR 7 PROFESSIONAL ACTIVITIES. NO SALARIED EXECUTIVE OFFICER OF THE 8 AUTHORITY SHALL HOLD ANY OTHER OFFICE IN OR BE AN EMPLOYEE OF 9 THE FEDERAL, STATE OR ANY COUNTY OR MUNICIPAL GOVERNMENT EXCEPT 10 AN OFFICE OR EMPLOYMENT WITHOUT COMPENSATION OR AN OFFICE IN THE 11 MILITARY RESERVE OR NATIONAL GUARD. 12 § 1724. PERSONNEL MATTERS. 13 (A) CLASSIFICATION OF POSITION.-- 14 (1) THE GENERAL MANAGER SHALL CLASSIFY ALL THE OFFICES, 15 POSITIONS AND GRADES OF REGULAR EMPLOYMENT REQUIRED WITH 16 REFERENCE TO THE DUTIES AND COMPENSATION FIXED THEREFOR AND 17 ADOPT RULES GOVERNING APPOINTMENTS TO ANY OF SUCH OFFICES OR 18 POSITIONS ON THE BASIS OF MERIT AND EFFICIENCY. 19 (2) PARAGRAPH (1) SHALL NOT APPLY TO THE CHAIRMAN OF THE 20 BOARD, SECRETARY, COUNSEL TO THE BOARD OR CONTROLLER. 21 (3) NO DISCRIMINATION SHALL BE MADE IN ANY APPOINTMENT 22 OR PROMOTION BECAUSE OF AGE, SEX, RACE, CREED, COLOR, 23 POLITICAL OR RELIGIOUS AFFILIATIONS OR DISABILITY. NO OFFICER 24 OR EMPLOYEE SHALL BE DISCHARGED OR DEMOTED EXCEPT FOR JUST 25 CAUSE. 26 (B) CHANGE IN WORK FORCE.--THE GENERAL MANAGER MAY ABOLISH 27 ANY OFFICE OR REDUCE THE FORCE OF EMPLOYEES FOR LACK OF WORK OR 28 LACK OF FUNDS, BUT, IN SO DOING, THE OFFICER OR EMPLOYEE WITH 29 THE SHORTEST SERVICE RECORD IN THE CLASSIFICATION AND GRADE TO 30 WHICH THE OFFICER OR EMPLOYEE BELONGS SHALL BE FIRST RELEASED 19930H0878B1975 - 26 -
1 FROM SERVICE AND SHALL BE REINSTATED IN ORDER OF SENIORITY WHEN 2 ADDITIONAL FORCE OF EMPLOYEES IN THAT JOB CLASSIFICATION AND 3 GRADE IS REQUIRED. NO PERSON SHALL BE RELEASED FROM SERVICE 4 UNDER THIS SUBSECTION IF THE PERSON CAN BE TRANSFERRED: 5 (1) TO ANOTHER JOB CLASSIFICATION AT A LOWER GRADE IN 6 WHICH JOB CLASSIFICATION THE PERSON HAD PREVIOUSLY SERVED, 7 FOR WHICH THAT PERSON IS QUALIFIED, AND IN WHICH THE 8 INCUMBENT IS JUNIOR IN SENIORITY; OR 9 (2) TO A VACANCY IN ANOTHER JOB CLASSIFICATION FOR WHICH 10 THAT PERSON IS QUALIFIED. 11 (C) PENSION SYSTEM.--THERE SHALL BE ESTABLISHED AND 12 MAINTAINED BY THE AUTHORITY A PENSION AND RETIREMENT SYSTEM TO 13 PROVIDE FOR PAYMENTS WHEN DUE UNDER SUCH SYSTEM OR AS MODIFIED 14 FROM TIME TO TIME BY RESOLUTION OF THE BOARD. FOR THIS PURPOSE, 15 BOTH THE BOARD AND THE PARTICIPATING EMPLOYEES SHALL MAKE SUCH 16 PERIODIC PAYMENTS TO THE ESTABLISHED SYSTEM AS MAY BE DETERMINED 17 BY RESOLUTION. THE BOARD MAY PROVIDE FOR PARTICIPATION BY ITS 18 EMPLOYEES IN THE SOCIAL SECURITY PROGRAM OR, IN LIEU OF SOCIAL 19 SECURITY PAYMENTS REQUIRED TO BE PAID BY PRIVATE CORPORATIONS 20 ENGAGED IN SIMILAR ACTIVITY, SHALL MAKE PAYMENTS INTO SUCH 21 ESTABLISHED SYSTEM AT LEAST EQUAL IN AMOUNT TO THE AMOUNT SO 22 REQUIRED TO BE PAID BY SUCH PRIVATE CORPORATIONS OR SHALL MAKE 23 SUCH OTHER ARRANGEMENTS AS WILL ACCOMPLISH THE SAME PURPOSE. 24 PROVISIONS SHALL BE MADE BY THE BOARD FOR ALL OFFICERS AND 25 EMPLOYEES OF THE AUTHORITY APPOINTED UNDER THIS CHAPTER TO 26 BECOME, SUBJECT TO PROCEDURES ADOPTED BY RESOLUTION OF THE 27 BOARD, MEMBERS AND BENEFICIARIES OF THE PENSIONS AND RETIREMENT 28 SYSTEM, WITH UNIFORM RIGHTS, PRIVILEGES, OBLIGATIONS AND STATUS 29 AS TO THE CLASS IN WHICH THE OFFICERS AND EMPLOYEES BELONG. 30 MEMBERS AND BENEFICIARIES OF ANY PENSION OR RETIREMENT SYSTEM 19930H0878B1975 - 27 -
1 ESTABLISHED BY A TRANSPORTATION SYSTEM ACQUIRED BY THE AUTHORITY 2 SHALL CONTINUE TO HAVE RIGHTS, PRIVILEGES, BENEFITS, OBLIGATIONS 3 AND STATUS WITH RESPECT TO THE PREVIOUSLY ESTABLISHED SYSTEM. TO 4 ACHIEVE THE PURPOSES SET FORTH IN THIS SUBSECTION, THE BOARD 5 SHALL, BY RESOLUTION, ADOPT APPROPRIATE PROCEDURES AND FROM TIME 6 TO TIME SHALL OBTAIN COMPETENT ACTUARIAL ADVICE. 7 § 1725. PUBLIC HEARINGS. 8 (A) CONDUCT.--ALL PUBLIC HEARINGS REQUIRED BY THIS CHAPTER 9 SHALL BE CONDUCTED SO AS TO INSURE THAT: 10 (1) MEMBERS OF THE PUBLIC ARE AFFORDED A REASONABLE 11 OPPORTUNITY TO COMMENT ORALLY OR IN WRITING OR BOTH ORALLY 12 AND IN WRITING CONCERNING ACTIONS THE AUTHORITY PROPOSES TO 13 TAKE. 14 (2) THE SITE OF THE HEARING IS A CONVENIENT, ACCESSIBLE 15 LOCATION. 16 (3) MEMBERS OF THE PUBLIC ARE ADEQUATELY INFORMED AT THE 17 OUTSET REGARDING THE PURPOSES OF THE HEARING AND THE MATTERS 18 ON THE AGENDA. 19 (4) REASONABLE AND LEGITIMATE QUESTIONS FROM MEMBERS OF 20 THE PUBLIC ARE ANSWERED. 21 (B) DECREASE IN SERVICE.--WHENEVER A DECREASE IN SERVICE IS 22 PROPOSED, A PUBLIC HEARING SHALL BE CONDUCTED IN ACCORDANCE WITH 23 THIS SECTION IN THE AREA AFFECTED BY THE PROPOSED DECREASE IN 24 SERVICE. 25 § 1726. CITIZEN ADVISORY COMMITTEE. 26 (A) ESTABLISHMENT AND COMPOSITION.--THERE IS HEREBY 27 ESTABLISHED A CITIZEN ADVISORY COMMITTEE. THE COMMITTEE SHALL 28 CONSIST OF: 29 (1) AN EVEN NUMBER OF MEMBERS OF THE GENERAL PUBLIC NOT 30 FEWER THAN 14 AND NOT GREATER THAN 24, THE EXACT NUMBER TO BE 19930H0878B1975 - 28 -
1 DETERMINED BY THE GENERAL MANAGER, WHO SHALL BE APPOINTED BY 2 THE COUNTY COMMISSIONERS OR THE COUNTY COUNCIL, AS THE CASE 3 MAY BE, OF ALL COUNTIES OF THE THIRD CLASS AND SECOND CLASS A 4 WHO ARE INVOLVED WITH ANY CITY OF THE FIRST CLASS IN THE 5 OPERATION OF A TRANSPORTATION SYSTEM AND BY THE MAYOR OF ANY 6 SUCH CITY OF THE FIRST CLASS FROM RESIDENTS OF THEIR 7 RESPECTIVE MUNICIPALITIES WHO ARE REGULAR USERS OF MASS 8 TRANSPORTATION SERVICE; AND 9 (2) FIVE MEMBERS OF THE GENERAL PUBLIC, ONE RESIDENT 10 FROM EACH OF THE COUNTIES MENTIONED IN PARAGRAPH (1) AND ONE 11 RESIDENT FROM THE CITY MENTIONED IN PARAGRAPH (1) WHO ARE 12 REGULAR USERS OF MASS TRANSPORTATION SERVICE, WHO SHALL BE 13 APPOINTED BY THE GENERAL MANAGER. 14 (B) TERMS.--THE COMPOSITION OF THE COMMITTEE SHALL REFLECT 15 THE PROPORTIONATE DISTRIBUTION OF TOTAL RIDERSHIP AMONG ALL 16 COUNTIES OF THE THIRD CLASS AND SECOND CLASS A WHO ARE INVOLVED 17 WITH ANY CITY OF THE FIRST CLASS IN THE OPERATION OF A 18 TRANSPORTATION SYSTEM AND ANY SUCH CITY OF THE FIRST CLASS. THE 19 TERMS OF THE MEMBERS SHALL BE TWO YEARS FROM THE DATE OF 20 APPOINTMENT OR UNTIL A SUCCESSOR HAS BEEN APPOINTED EXCEPT THAT 21 ONE-HALF OF THE MEMBERS FIRST APPOINTED SHALL SERVE FOR TERMS OF 22 ONE YEAR AND THE OTHER ONE-HALF SHALL SERVE FOR TERMS OF TWO 23 YEARS. NO MEMBER SHALL SERVE MORE THAN THREE CONSECUTIVE TERMS. 24 THE COMMITTEE SHALL SELECT FROM AMONG ITS NUMBER A CHAIRMAN, 25 VICE CHAIRMAN AND A SECRETARY. A MAJORITY OF THE MEMBERS OF THE 26 COMMITTEE PLUS ONE SHALL CONSTITUTE A QUORUM. 27 (C) SUBJECTS TO BE SUBMITTED.--REGARDLESS OF WHETHER PUBLIC 28 HEARINGS ARE REQUIRED ON THE MATTERS DESCRIBED IN THIS 29 SUBSECTION, THE GENERAL MANAGER SHALL SUBMIT TO THE COMMITTEE 30 PROPOSALS REGARDING THE ADOPTION OR AMENDMENT OF A COMPREHENSIVE 19930H0878B1975 - 29 -
1 TRANSPORTATION PLAN, THE ANNUAL OPERATING BUDGET, ANY CAPITAL 2 BUDGET, THE FACILITIES TO BE OPERATED, THE SERVICES TO BE 3 AVAILABLE AND THE RATES TO BE CHARGED THEREFOR OR OTHER MATTERS 4 OF A SIMILAR NATURE PRIOR TO ANY FINAL ACTION RELATING TO ANY OF 5 THE FOREGOING. THE COMMITTEE MAY THOROUGHLY CONSIDER THE 6 PROPOSALS AND MAY PREPARE AND TRANSMIT TO THE GENERAL MANAGER 7 AND TO ANY INTERESTED MEMBER OF THE PUBLIC WRITTEN COMMENTS 8 CONCERNING THE PROPOSALS PRIOR TO THE DATE WHEN FINAL ACTION IS 9 TO BE TAKEN. 10 (D) NATURE OF COMMITTEE'S COMMENTS.--ALTHOUGH THE GENERAL 11 MANAGER SHALL GIVE CAREFUL AND DUE CONSIDERATION TO THE 12 COMMITTEE'S COMMENTS PRIOR TO THE TAKING OF ANY FINAL ACTION, 13 THE COMMENTS SHALL BE CONSIDERED ONLY ADVISORY IN NATURE. 14 (E) TRANSITION PROVISION.--WITH RESPECT TO THE CITIZEN 15 ADVISORY COMMITTEE ESTABLISHED UNDER THE FORMER PROVISIONS OF 16 ARTICLE III OF THE ACT OF JANUARY 22, 1968 (P.L.42, NO.8), KNOWN 17 AS THE PENNSYLVANIA URBAN MASS TRANSPORTATION ACT, OR THE FORMER 18 PROVISIONS OF CHAPTER 15 (RELATING TO METROPOLITAN 19 TRANSPORTATION AUTHORITIES) THAT COMMITTEE SHALL CONTINUE IN 20 EFFECT AND SHALL BE DEEMED, FOR ALL PURPOSES, TO BE A COMMITTEE 21 CREATED UNDER THIS SECTION. THIS COMMITTEE SHALL BE DEEMED TO 22 HAVE SATISFIED THE REQUIREMENTS OF SUBSECTIONS (A) AND (B) 23 CONCERNING THE ESTABLISHMENT, FUNCTIONS AND DUTIES OF A CITIZENS 24 ADVISORY COMMITTEE UNDER THIS CHAPTER. ALL MEMBERS OF THE 25 COMMITTEE SHALL CONTINUE IN OFFICE AND SHALL EXERCISE THE 26 POWERS, FUNCTIONS AND DUTIES OF MEMBERS OF THE COMMITTEE UNTIL 27 THE EXPIRATION OF THEIR RESPECTIVE TERMS OF OFFICE IN EFFECT ON 28 THE EFFECTIVE DATE OF THIS CHAPTER. 29 § 1727. INVESTIGATIONS AND SUBPOENAS. 30 (A) PROCEDURE.--THE BOARD MAY INVESTIGATE ALL MEANS OF 19930H0878B1975 - 30 -
1 TRANSPORTATION AND THE MANAGEMENT THEREOF, THE ENFORCEMENT OF 2 ITS RESOLUTIONS, RULES AND REGULATIONS, AND THE ACTION, CONDUCT, 3 AND EFFICIENCY OF ALL OFFICERS, AGENTS AND EMPLOYEES OF THE 4 AUTHORITY. IN THE CONDUCT OF INVESTIGATIONS, THE BOARD MAY HOLD 5 PUBLIC HEARINGS ON ITS OWN MOTION AND SHALL DO SO ON COMPLAINT 6 OR PETITION OF ANY MUNICIPALITY IN THE METROPOLITAN AREA. EACH 7 MEMBER OF THE BOARD SHALL HAVE POWER TO ADMINISTER OATHS, AND 8 THE SECRETARY, BY ORDER OF THE BOARD, SHALL ISSUE SUBPOENAS TO 9 SECURE THE ATTENDANCE AND TESTIMONY OF WITNESSES AND THE 10 PRODUCTION OF BOOKS AND PAPERS RELEVANT TO INVESTIGATIONS AND TO 11 ANY HEARING BEFORE THE BOARD OR ANY MEMBER THEREOF, OR ANY 12 OFFICERS' COMMITTEE OR EMPLOYEES' COMMITTEE, APPOINTED BY THE 13 BOARD TO HEAR ANY COMPLAINT OF AN OFFICER OR EMPLOYEE WHO HAS 14 BEEN DISCHARGED OR DEMOTED. 15 (B) ENFORCEMENT.--ANY COURT OF RECORD OF THIS COMMONWEALTH, 16 OR ANY JUDGE THEREOF, EITHER IN TERM TIME OR VACATION, UPON 17 APPLICATION OF THE BOARD OR ANY MEMBER THEREOF, MAY, IN HIS 18 DISCRETION, COMPEL THE ATTENDANCE OF WITNESSES, THE PRODUCTION 19 OF BOOKS AND PAPERS AND GIVING OF TESTIMONY BEFORE THE BOARD OR 20 BEFORE ANY MEMBER THEREOF, OR ANY OFFICERS' COMMITTEE OR 21 EMPLOYEES' COMMITTEE APPOINTED BY THE BOARD BY ATTACHMENT FOR 22 CONTEMPT OR OTHERWISE, IN THE SAME MANNER AS THE PRODUCTION OF 23 EVIDENCE MAY BE COMPELLED BEFORE THE COURT. 24 § 1728. CONFLICTS OF INTEREST. 25 EVERY MEMBER OF THE BOARD AND EVERY EMPLOYEE OF THE AUTHORITY 26 SHALL BE SUBJECT TO THE ACT OF JULY 19, 1957 (P.L.1017, NO.451), 27 KNOWN AS THE STATE ADVERSE INTEREST ACT, AND THE ACT OF OCTOBER 28 4, 1978 (P.L.883, NO.170), REFERRED TO AS THE PUBLIC OFFICIAL 29 AND EMPLOYEE ETHICS LAW. 30 SUBCHAPTER C 19930H0878B1975 - 31 -
1 POWERS AND DUTIES 2 SEC. 3 1741. GENERAL POWERS. 4 1742. POWER TO ACQUIRE PROPERTY. 5 1743. POWER TO CONTRACT WITH PUBLIC UTILITIES. 6 1744. POWER OF EMINENT DOMAIN. 7 1745. USE OF WAYS OCCUPIED BY PASSENGER UTILITIES. 8 1746. TRANSFER OF RECORDS BY PENNSYLVANIA PUBLIC UTILITY 9 COMMISSION. 10 1747. ACQUISITION OF EQUIPMENT. 11 1748. TRANSFERS OF FACILITIES OR THINGS OF VALUE TO ANY 12 AUTHORITY. 13 1749. COMPACTS TO FINANCE OPERATIONS AND PARTICULAR PROJECTS. 14 1750. CONTRACTS, PROCUREMENT AND SALE OF PROPERTY. 15 1751. FISCAL PROVISIONS. 16 1752. FINANCIAL STATEMENTS AND AUDIT. 17 1753. AID FROM FEDERAL GOVERNMENT. 18 § 1741. GENERAL POWERS. 19 (A) POWERS ENUMERATED.--AN AUTHORITY SHALL HAVE AND MAY 20 EXERCISE ALL POWERS NECESSARY OR CONVENIENT FOR THE CARRYING OUT 21 OF THE PURPOSES OF THIS CHAPTER, INCLUDING THE FOLLOWING RIGHTS, 22 POWERS AND DUTIES: 23 (1) TO HAVE PERPETUAL EXISTENCE. 24 (2) TO SUE AND BE SUED, IMPLEAD AND BE IMPLEADED, 25 COMPLAIN AND DEFEND IN ALL COURTS, TO PETITION THE INTERSTATE 26 COMMERCE COMMISSION OR ANY OTHER FEDERAL OR STATE REGULATORY 27 BODY OR JOIN IN ANY PROCEEDING BEFORE ANY SUCH BODIES OR 28 COURTS IN ANY MATTER AFFECTING THE OPERATION OF ANY PROJECT 29 OF THE AUTHORITY. 30 (3) TO ADOPT AND USE AND ALTER AT WILL A CORPORATE SEAL. 19930H0878B1975 - 32 -
1 (4) TO ESTABLISH A PRINCIPAL OFFICE WITHIN THE COUNTY OF 2 THE FIRST CLASS AND SUCH OTHER OFFICE OR OFFICES AS MAY BE 3 NECESSARY FOR THE CARRYING ON OF ITS DUTIES. 4 (5) TO MAKE AND FROM TIME TO TIME TO AMEND AND REPEAL 5 BYLAWS, RULES, REGULATIONS AND RESOLUTIONS. 6 (6) TO CONDUCT EXAMINATIONS AND INVESTIGATIONS AND TO 7 HEAR TESTIMONY AND TAKE PROOF, UNDER OATH OR AFFIRMATION AT 8 PUBLIC OR PRIVATE HEARINGS, AS PROVIDED IN THIS CHAPTER, ON 9 ANY MATTER MATERIAL TO THE PUBLIC PURPOSES SET FORTH IN THIS 10 CHAPTER. 11 (7) TO APPOINT OFFICERS, AGENTS, EMPLOYEES AND SERVANTS 12 AND TO PRESCRIBE THEIR DUTIES AND FIX THEIR COMPENSATION, 13 SUBJECT, HOWEVER, TO SPECIFIC PROVISIONS OF THIS CHAPTER. 14 MEMBERS OF THE BOARD, AS WELL AS OFFICERS AND EMPLOYEES OF 15 THE AUTHORITY, SHALL NOT BE LIABLE PERSONALLY ON ANY 16 OBLIGATIONS, INCLUDING, BUT NOT LIMITED TO, BONDS OF THE 17 AUTHORITY. 18 (8) TO ENTER INTO CONTRACTS OF GROUP INSURANCE FOR THE 19 BENEFIT OF ITS EMPLOYEES OR TO CONTINUE ANY EXISTING 20 INSURANCE AND/OR PENSION OR RETIREMENT SYSTEM AND/OR ANY 21 OTHER EMPLOYEE BENEFIT ARRANGEMENT COVERING EMPLOYEES OF AN 22 ACQUIRED EXISTING TRANSPORTATION SYSTEM, AND/OR TO SET UP A 23 RETIREMENT OR PENSION FUND OR ANY OTHER EMPLOYEE BENEFIT 24 ARRANGEMENT FOR ITS EMPLOYEES. 25 (9) TO PROCURE SUCH INSURANCE, LETTERS OF CREDIT, 26 LIQUIDITY FACILITIES, GUARANTIES AND SURETIES CONTAINING SUCH 27 COVERAGES, INCLUDING, BUT NOT LIMITED TO, CONTRACTS INSURING 28 OR GUARANTEEING THE TIMELY PAYMENT IN FULL OF PRINCIPAL OF 29 AND INTEREST ON BONDS OF THE AUTHORITY, OR PROVIDING 30 LIQUIDITY FOR PURCHASE OF BONDS OF THE AUTHORITY IN SUCH 19930H0878B1975 - 33 -
1 AMOUNTS, FROM SUCH INSURERS, SURETIES, GUARANTORS OR OTHER 2 PERSONS, AS THE AUTHORITY MAY DETERMINE TO BE NECESSARY OR 3 DESIRABLE FOR ITS PURPOSES. 4 (10) TO SELF-INSURE OR OTHERWISE PROVIDE FOR THE 5 INSURANCE OF ANY PROPERTY OR OPERATIONS OF THE AUTHORITY 6 AGAINST ANY RISKS OR HAZARDS. 7 (11) TO INVEST ANY FUNDS HELD IN RESERVE OR SINKING 8 FUNDS, OR ANY FUNDS NOT REQUIRED FOR IMMEDIATE DISBURSEMENT, 9 AS AUTHORIZED BY SECTION 1761 (RELATING TO MANAGEMENT OF 10 FUNDS). 11 (12) TO ACQUIRE BY PURCHASE, GIFT OR OTHERWISE, HOLD, 12 LEASE AS LESSEE AND USE ANY FRANCHISE, RIGHT OR PROPERTY, 13 REAL, PERSONAL OR MIXED, TANGIBLE OR INTANGIBLE, OR ANY 14 INTEREST OR RIGHT THEREIN NECESSARY, DESIRABLE OR USEFUL FOR 15 CARRYING OUT THE PURPOSES OF THE AUTHORITY; TO SELL, LEASE AS 16 LESSOR, TRANSFER, DISPOSE OF OR OTHERWISE CONVEY ANY 17 FRANCHISE, RIGHT OR PROPERTY, REAL, PERSONAL OR MIXED, 18 TANGIBLE OR INTANGIBLE, OR ANY INTEREST OR RIGHT THEREIN, AT 19 ANY TIME ACQUIRED BY IT; OR TO EXCHANGE THE SAME FOR OTHER 20 PROPERTY OR RIGHTS WHICH ARE USEFUL FOR ITS PURPOSES. 21 (13) TO ACQUIRE BY EMINENT DOMAIN ANY REAL OR PERSONAL 22 PROPERTY, INCLUDING IMPROVEMENTS, FIXTURES AND FRANCHISES OF 23 ANY KIND WHATEVER, FOR THE PUBLIC PURPOSES SET FORTH IN THIS 24 CHAPTER IN THE MANNER PROVIDED IN THIS CHAPTER. 25 (14) TO ACQUIRE BY PURCHASE, LEASE OR OTHERWISE AND TO 26 CONSTRUCT, IMPROVE, MAINTAIN, REPAIR AND OPERATE PASSENGER 27 TRANSPORTATION FACILITIES AND A TRANSPORTATION SYSTEM OR 28 SYSTEMS OR PORTIONS THEREOF, AND TO PAY ALL COSTS THEREOF, 29 INCLUDING, BUT NOT LIMITED TO, THE COSTS OF ALL WORK AND 30 MATERIALS INCIDENTAL THERETO AND ALL AMOUNTS NECESSARY TO 19930H0878B1975 - 34 -
1 PLACE ANY PROJECT INTO OPERATION. 2 (15) TO FIX, ALTER, CHARGE AND COLLECT FARES, RATES, 3 RENTALS AND OTHER CHARGES FOR ITS FACILITIES BY ZONES OR 4 OTHERWISE AT REASONABLE RATES TO BE DETERMINED EXCLUSIVELY BY 5 IT, SUBJECT TO APPEAL, AS PROVIDED IN THIS CHAPTER, FOR THE 6 PURPOSE OF PROVIDING FOR THE PAYMENT OF ALL EXPENSES AND 7 OBLIGATIONS OF THE AUTHORITY, INCLUDING THE ACQUISITION, 8 CONSTRUCTION, IMPROVEMENT, REPAIR, MAINTENANCE AND OPERATION 9 OF ITS FACILITIES AND PROPERTIES, THE MAINTENANCE AND 10 OPERATION OF A TRANSPORTATION SYSTEM, THE PAYMENT OF THE 11 PRINCIPAL AND INTEREST ON ITS OBLIGATIONS, AND TO COMPLY 12 FULLY WITH THE TERMS AND PROVISIONS OF ANY AGREEMENTS MADE 13 WITH THE PURCHASERS OF BONDS OR OBLIGEES OF THE AUTHORITY. AN 14 AUTHORITY SHALL DETERMINE BY ITSELF, EXCLUSIVELY, THE 15 FACILITIES TO BE OPERATED BY IT, THE SERVICES TO BE AVAILABLE 16 AND THE RATES TO BE CHARGED THEREFOR. PUBLIC HEARINGS SHALL 17 BE HELD PRIOR TO SUCH DETERMINATIONS WHEN CHANGES ARE 18 PROPOSED WHICH WOULD INCREASE OR DECREASE FARES, ESTABLISH 19 NEW ROUTES, ELIMINATE ROUTES, CHANGE ROUTES OR MAKE 20 SUBSTANTIAL CHANGES IN THE LEVEL OF SERVICE SCHEDULED. 21 HOWEVER, PUBLIC HEARINGS NEED NOT BE HELD FOR ROUTE CHANGES, 22 FARES OR LEVEL OF SCHEDULED SERVICE IN THE CASE OF TEMPORARY 23 CHANGES NOT EXCEEDING 90 DAYS CAUSED BY EMERGENCIES; 24 PROMOTIONAL FARES OR SERVICES, OR EXPERIMENTAL SERVICES, 25 ADOPTED TO INCREASE REVENUE AND RIDERSHIP, SUBJECT TO BOARD 26 RESOLUTION; OR SPECIAL EVENTS IN WHICH THE AUTHORITY 27 PARTICIPATES AS PROVIDED BY BOARD RESOLUTION. NOTICE OF 28 PUBLIC HEARINGS SHALL BE PUBLISHED IN TWO NEWSPAPERS OF 29 GENERAL CIRCULATION AND A PUBLICATION SPECIFICALLY DESIGNED 30 TO REACH MINORITIES NOT FEWER THAN 30 CALENDAR DAYS PRIOR TO 19930H0878B1975 - 35 -
1 SUCH HEARING. ANY PERSON AGGRIEVED BY ANY RATE OR SERVICE OR 2 CHANGE OF SERVICE FIXED BY THE AUTHORITY MAY BRING AN APPEAL 3 AGAINST THE AUTHORITY FOR THE PURPOSE OF PROTESTING AGAINST 4 ANY SUCH CHARGE, SERVICE OR CHANGE OF SERVICE. THE GROUNDS 5 FOR THE SUITS SHALL BE RESTRICTED TO A MANIFEST AND FLAGRANT 6 ABUSE OF DISCRETION OR AN ERROR OF LAW; OTHERWISE, ALL 7 ACTIONS BY THE AUTHORITY SHALL BE FINAL. UPON THE FINDING OF 8 AN ERROR OF LAW OR A MANIFEST AND FLAGRANT ABUSE OF 9 DISCRETION, THE COURT SHALL ISSUE AN ORDER SETTING FORTH THE 10 ABUSE OR ERROR AND RETURNING THE MATTER TO THE AUTHORITY FOR 11 SUCH FURTHER ACTION AS SHALL BE NOT INCONSISTENT WITH THE 12 FINDINGS OF THE COURT. NO APPEAL FROM THE ACTION OF THE 13 AUTHORITY OR FROM THE DECISION OF THE COURT OF COMMON PLEAS 14 SHALL ACT AS A SUPERSEDEAS, EXCEPT WHEN TAKEN BY THE 15 AUTHORITY OR, IN OTHER CASES, WHEN SPECIALLY GRANTED AFTER A 16 FINDING THAT IRREPARABLE AND EXTRAORDINARY HARM WILL RESULT. 17 THE COURTS SHALL GIVE PRIORITY TO ALL APPEALS, AND NO BOND 18 SHALL BE REQUIRED OF ANY PARTY INSTITUTING SUCH AN APPEAL 19 UNDER THE PROVISIONS OF THIS SECTION. 20 (16) TO FIX RATES, FARES AND CHARGES IN SUCH MANNER THAT 21 THEY SHALL BE AT ALL TIMES SUFFICIENT IN THE AGGREGATE, AND 22 IN CONJUNCTION WITH ANY GRANTS FROM FEDERAL OR OTHER SOURCES 23 AND ANY OTHER INCOME AVAILABLE TO THE AUTHORITY, TO PROVIDE 24 FUNDS FOR THE PAYMENT OF ALL OPERATING COSTS AND EXPENSES 25 WHICH SHALL BE INCURRED BY THE AUTHORITY, FOR THE PAYMENT OF 26 THE INTEREST ON AND PRINCIPAL OF ALL BONDS PAYABLE FROM THE 27 REVENUES AND TO MEET ALL OTHER CHARGES UPON SUCH REVENUES AS 28 PROVIDED BY ANY TRUST AGREEMENT EXECUTED BY THE AUTHORITY IN 29 CONNECTION WITH THE ISSUANCE OF BONDS. 30 (17) TO ENTER INTO AGREEMENTS WITH THE UNITED STATES 19930H0878B1975 - 36 -
1 POSTAL SERVICE, OR ANY SUCCESSOR ORGANIZATION, FOR THE 2 TRANSPORTATION OF MAIL AND PAYMENT OF COMPENSATION TO THE 3 AUTHORITY IN LIEU OF FARES FOR THE TRANSPORTATION OF LETTER 4 CARRIERS IN UNIFORM AT ALL TIMES. THE BOARD MAY PROVIDE FREE 5 TRANSPORTATION FOR FIREFIGHTERS IN UNIFORM AND POLICE 6 OFFICERS WHEN IN UNIFORM OR WHEN NOT IN UNIFORM, UPON 7 PRESENTATION OF IDENTIFICATION AS POLICE OFFICERS. THE BOARD 8 MAY PROVIDE FREE TRANSPORTATION FOR EMPLOYEES OF THE 9 AUTHORITY WHEN IN UNIFORM OR UPON PRESENTATION OF 10 IDENTIFICATION AS SUCH EMPLOYEES, PROVIDE FREE TRANSPORTATION 11 TO DEPENDENTS OF EMPLOYEES OF THE AUTHORITY UPON PRESENTATION 12 OF IDENTIFICATION AS PROVIDED BY THE BOARD AND ENTER INTO 13 RECIPROCAL ARRANGEMENTS TO PROVIDE FREE TRANSPORTATION TO 14 EMPLOYEES AND DEPENDENTS OF EMPLOYEES OF OTHER TRANSPORTATION 15 AGENCIES. 16 (18) TO BORROW MONEY FROM ANY PERSON FOR THE PURPOSE OF 17 PAYING THE COSTS OF ANY PROJECT OR IN ANTICIPATION OF THE 18 RECEIPT OF INCOME OF THE AUTHORITY AND TO EVIDENCE THE SAME; 19 MAKE AND ISSUE BONDS OF THE AUTHORITY; SECURE THE PAYMENT OF 20 SUCH BONDS OR ANY PART THEREOF, BY PLEDGE OF OR SECURITY 21 INTEREST, WHICH MAY BE A SENIOR, PARITY OR SUBORDINATED 22 PLEDGE OR SECURITY INTEREST, IN ALL OR ANY OF ITS REVENUES, 23 RENTALS, RECEIPTS AND CONTRACT RIGHTS AND ALL OR ANY OF ITS 24 MOVEABLE EQUIPMENT AND OTHER TANGIBLE PERSONAL PROPERTY; TO 25 SECURE THE PAYMENT OF SUCH BONDS OR ANY PART THEREOF BY A 26 MORTGAGE LIEN ON REAL PROPERTY OF THE AUTHORITY OR ANY 27 INTEREST THEREIN, PROVIDED, HOWEVER, THAT NO SUCH LIEN SHALL 28 EXTEND TO REAL PROPERTY OF THE AUTHORITY COMPRISING RIGHTS OF 29 WAY, EASEMENTS OR ANY OTHER INTERESTS IN REAL PROPERTY USED 30 OR USEFUL FOR PASSAGE OF TRANSPORTATION VEHICLES OR NECESSARY 19930H0878B1975 - 37 -
1 FOR THE SAFE AND SOUND ROUTING OR CONTROL OF TRANSPORTATION 2 VEHICLES; ISSUE BONDS ON AN UNSECURED BASIS; ISSUE BONDS ON A 3 LIMITED RECOURSE OR NONRECOURSE BASIS; ISSUE BONDS UNDER A 4 MASTER TRUST INDENTURE; MAKE AGREEMENTS WITH THE PURCHASERS 5 OR HOLDERS OF BONDS OR WITH OTHER OBLIGEES OF THE AUTHORITY 6 IN CONNECTION WITH ANY BONDS, WHETHER ISSUED OR TO BE ISSUED, 7 AS THE AUTHORITY SHALL DEEM ADVISABLE, WHICH AGREEMENTS SHALL 8 CONSTITUTE CONTRACTS WITH THE PURCHASERS OR OBLIGEES OF THE 9 AUTHORITY; OBTAIN CREDIT ENHANCEMENT OR LIQUIDITY FACILITIES 10 IN CONNECTION WITH ANY BONDS AS THE AUTHORITY SHALL DETERMINE 11 TO BE ADVANTAGEOUS; AND, IN GENERAL, PROVIDE FOR THE SECURITY 12 FOR THE BONDS AND THE RIGHTS OF THE OBLIGEES OF THE 13 AUTHORITY. 14 (19) TO ACCEPT GRANTS AND TO ENTER INTO CONTRACTS, 15 LEASES, SUBLEASES, LICENSES OR OTHER TRANSACTIONS WITH ANY 16 PERSON ON SUCH TERMS AND FOR SUCH PURPOSES AS THE AUTHORITY 17 SHALL DEEM PROPER. 18 (20) TO NEGOTIATE AND ENTER INTO ARRANGEMENTS, INCLUDING 19 FUTURES CONTRACTS, FORWARD CONTRACTS AND CAP, COLLAR, 20 CORRIDOR, FLOOR OR CEILING AGREEMENTS, WITH RESPECT TO 21 ESSENTIAL SUPPLIES AND COMMODITIES FOR AN AUTHORITY FOR THE 22 PURPOSE OF REDUCING THE RISK TO THE AUTHORITY OF PRICE 23 FLUCTUATIONS FOR THE SUPPLIES AND COMMODITIES. 24 (21) TO MAKE AND EXECUTE ALL CONTRACTS AND OTHER 25 INSTRUMENTS NECESSARY OR CONVENIENT TO THE EXERCISE OF THE 26 POWERS OF THE AUTHORITY, AND ANY CONTRACT OR INSTRUMENT WHEN 27 SIGNED BY THE CHAIRMAN OR VICE CHAIRMAN AND SECRETARY OR 28 ASSISTANT SECRETARY OR TREASURER OR ASSISTANT TREASURER OF 29 THE AUTHORITY SHALL BE HELD TO HAVE BEEN PROPERLY EXECUTED 30 FOR AND ON ITS BEHALF. WITHOUT LIMITING THE GENERALITY OF THE 19930H0878B1975 - 38 -
1 FOREGOING, THE AUTHORITY IS ALSO AUTHORIZED TO ENTER INTO 2 CONTRACTS FOR THE PURCHASE, LEASE, OPERATION OR MANAGEMENT OF 3 TRANSPORTATION FACILITIES WITHIN OR WITHOUT THE METROPOLITAN 4 AREA OR WITHIN OR WITHOUT THIS COMMONWEALTH. WHENEVER THE 5 FACILITIES ARE LOCATED OUTSIDE THE METROPOLITAN AREA, THEY 6 SHALL BE SUBJECT TO THE JURISDICTION OF THE APPROPRIATE 7 REGULATORY AGENCIES. 8 (22) TO ENTER INTO CONTRACTS WITH GOVERNMENT AGENCIES 9 AND FEDERAL AGENCIES ON SUCH TERMS AS THE AUTHORITY SHALL 10 DEEM PROPER FOR THE USE OF ANY FACILITY OR OTHER REAL OR 11 PERSONAL PROPERTY OF THE AUTHORITY, AND FIXING THE AMOUNT TO 12 BE PAID THEREFOR. 13 (23) TO AGREE WITH THE CONSTITUENT MUNICIPALITIES IN 14 WHICH IT OPERATES FOR THE LEASE OF PRESENT AND FUTURE 15 MUNICIPAL PROPERTY, WHERE SUCH A LEASE WOULD BE ADVANTAGEOUS 16 TO THE AUTHORITY IN THE FINANCING OR THE OPERATION OF 17 IMPROVED PASSENGER TRANSPORTATION SERVICE. 18 (24) TO EXPLORE ALTERNATIVE MEANS OF RAISING REVENUE OR 19 REDUCING EXPENSES, INCLUDING, BUT NOT LIMITED TO, REAL ESTATE 20 LEASES AND RENTALS, EQUIPMENT LEASES AND RENTALS, CONTRACTING 21 OF SERVICES, THE SOLICITATION OF COMPETITIVE BIDS AND THE 22 AWARDING OF CONTRACTS TO THE HIGHEST RESPONSIVE, RESPONSIBLE 23 BIDDER FOR BOTH INTERIOR AND EXTERIOR ADVERTISING ON ALL 24 AUTHORITY EQUIPMENT ON WHICH THE PUBLIC IS CHARGED A FARE FOR 25 RIDING. HOWEVER, ON RAIL PASSENGER UNITS ONLY BIDS FOR 26 INTERIOR ADVERTISING SHALL BE SOLICITED. NOTHING IN THIS 27 CHAPTER OR IN ANY OTHER LAW OF THIS COMMONWEALTH SHALL 28 PRECLUDE THE NEGOTIATION AND EXECUTION OF CONTRACTS WITH 29 RESPECT TO REAL ESTATE-RELATED MATTERS IN ACCORDANCE WITH AND 30 SUBJECT SOLELY TO THE PROVISIONS OF THIS PARAGRAPH. THE 19930H0878B1975 - 39 -
1 GENERAL MANAGER MAY RECOMMEND IN WRITING THAT THE BOARD MAKE 2 A FINDING OF SPECIAL OPPORTUNITY WITH RESPECT TO A REAL 3 ESTATE-RELATED MATTER. THE BOARD SHALL CONSIDER THE GENERAL 4 MANAGER'S RECOMMENDATION AT A PUBLIC MEETING. THE NOTICE 5 GIVEN IN ACCORDANCE WITH THE ACT OF JULY 3, 1986 (P.L.388, 6 NO.84), KNOWN AS THE SUNSHINE ACT, WITH RESPECT TO SUCH 7 MEETING SHALL STATE THAT THE BOARD WILL CONSIDER MAKING A 8 FINDING OF SPECIAL OPPORTUNITY AT SUCH MEETING AND SHALL 9 DESCRIBE THE NATURE OF THE PROPOSED FINDING OF SPECIAL 10 OPPORTUNITY. ANY FINDING OF SPECIAL OPPORTUNITY SHALL BE 11 APPROVED BY THE BOARD IN ACCORDANCE WITH THE PROVISIONS OF 12 SECTION 1715 (RELATING TO MEETINGS, QUORUM, OFFICERS AND 13 RECORDS). THE BOARD SHALL ADOPT, BY RESOLUTION, A PROCESS 14 UNDER WHICH THE AUTHORITY SHALL ENTER INTO CONTRACTS NEEDED 15 TO IMPLEMENT A FINDING OF SPECIAL OPPORTUNITY. THE PROCESS 16 ADOPTED BY THE BOARD SHALL PROVIDE A METHOD OF PREQUALIFYING 17 PROSPECTIVE CONTRACTING PARTIES, WHERE APPROPRIATE; FOR THE 18 REASONABLE NOTIFICATION OF PROSPECTIVE CONTRACTING PARTIES OF 19 THE ISSUANCE OF REQUESTS FOR PROPOSALS AND THE REASONABLE 20 OPPORTUNITY FOR QUALIFIED PROSPECTIVE CONTRACTING PARTIES TO 21 SUBMIT PROPOSALS; FOR REVIEW OF PROPOSALS FROM QUALIFIED 22 PROSPECTIVE CONTRACTING PARTIES; FOR THE NEGOTIATION OF 23 CONTRACTS WITH ONE OR MORE PROSPECTIVE CONTRACTING PARTIES; 24 FOR AWARD OF CONTRACTS ON THE BASIS OF EVALUATION OF THE 25 CHARACTERISTICS OF THE PROPOSALS; AND FOR GIVING SUCH WEIGHT 26 TO THE VARIOUS CHARACTERISTICS OF ANY PROPOSAL AS THE BOARD 27 SHALL DETERMINE IS IN THE BEST INTEREST OF THE AUTHORITY. THE 28 CHARACTERISTICS BY WHICH PROPOSALS MAY BE EVALUATED UNDER A 29 FINDING OF SPECIAL OPPORTUNITY MAY INCLUDE THE LIKELY 30 COMPLEXITY OF THE TRANSACTION; THE AMOUNT OF INVESTMENT ANY 19930H0878B1975 - 40 -
1 SELECTED CONTRACTING PARTY WILL BE REQUIRED TO MAKE OR OFFERS 2 TO MAKE IN THE REAL ESTATE-RELATED MATTER; THE EXPERIENCE AND 3 PRIOR SUCCESS OF THE PROPOSED CONTRACTING PARTY IN OTHER 4 SIMILAR DEALINGS WITH THE SAME TYPE OF REAL ESTATE-RELATED 5 MATTERS OR WITH THE AUTHORITY; THE QUALITY, FEASIBILITY AND 6 POTENTIAL FOR ECONOMIC SUCCESS OF THE PROPOSAL; ANY COST OR 7 POTENTIAL RETURN TO THE AUTHORITY; THE ECONOMIC RELIABILITY 8 AND FINANCIAL VIABILITY OF THE PROPOSED CONTRACTING PARTY; 9 THE COMPATIBILITY OF THE PROPOSAL WITH THE AUTHORITY'S BASIC 10 FUNCTION AS A PUBLIC TRANSPORTATION PROVIDER; THE DATE BY 11 WHICH THE PROPOSED CONTRACTING PARTY AGREES TO COMPLETE THE 12 REAL ESTATE-RELATED MATTER; AND OTHER FACTORS WHICH THE BOARD 13 SHALL SPECIFY. THE AUTHORITY SHALL MAKE AVAILABLE A COPY OF 14 THE PROCESS ADOPTED BY THE BOARD TO ANY PERSON REQUESTING A 15 COPY OF THE PROCESS. THE GENERAL MANAGER MAY MAKE A WRITTEN 16 RECOMMENDATION TO THE BOARD CONCERNING THE AWARD OF A 17 CONTRACT UNDER A FINDING OF SPECIAL OPPORTUNITY. THE GENERAL 18 MANAGER'S RECOMMENDATION SHALL INCLUDE THE IDENTITY OF THE 19 PROSPECTIVE CONTRACTING PARTY OR PARTIES, THE PURPOSE OF THE 20 CONTRACT, THE SUBSTANCE OF THE FINDING OF SPECIAL 21 OPPORTUNITY, THE SUBSTANCE AND TERM OF THE PROPOSED CONTRACT, 22 THE IDENTITIES OF ANY OTHER PROSPECTIVE CONTRACTING PARTIES 23 WHO SUBMITTED PROPOSALS AND THE CRITERIA UPON WHICH THE 24 GENERAL MANAGER'S RECOMMENDATION WAS MADE AND THE REASONS FOR 25 SELECTING THE PROSPECTIVE CONTRACTING PARTY. UPON THE WRITTEN 26 RECOMMENDATION OF THE GENERAL MANAGER, THE BOARD MAY AWARD 27 CONTRACTS UNDER THIS PARAGRAPH AFTER APPROVING THE AWARDING 28 OF THE CONTRACT BY A RESOLUTION ADOPTED AT A PUBLIC MEETING. 29 THE NOTICE GIVEN IN ACCORDANCE WITH THE SUNSHINE ACT WITH 30 RESPECT TO SUCH MEETING SHALL STATE THAT THE BOARD WILL 19930H0878B1975 - 41 -
1 CONSIDER AWARDING A CONTRACT UNDER A FINDING OF SPECIAL 2 OPPORTUNITY AT SUCH MEETING AND SHALL DESCRIBE THE SUBJECT 3 MATTER OF SUCH PROPOSED CONTRACT. THE AUTHORITY SHALL BY 4 APRIL 15 OF EACH YEAR SUBMIT A REPORT TO THE DEPARTMENT. THE 5 REPORT SHALL DETAIL THE ACTIONS OF THE AUTHORITY IN EXPLORING 6 ALTERNATE MEANS OF RAISING REVENUE AND REDUCING EXPENSES. THE 7 DEPARTMENT SHALL REVIEW THE REPORT AND ISSUE ITS FINDINGS AND 8 RECOMMENDATIONS TO THE APPROPRIATIONS COMMITTEE AND THE 9 TRANSPORTATION COMMITTEE OF THE SENATE AND THE APPROPRIATIONS 10 COMMITTEE AND THE TRANSPORTATION COMMITTEE OF THE HOUSE OF 11 REPRESENTATIVES NO LATER THAN 30 DAYS AFTER RECEIPT OF SUCH 12 REPORT FOR REVIEW AND CONSIDERATION OF FUTURE FUNDING BY SUCH 13 COMMITTEES. WHERE ANY ALTERNATE MEANS HAVE BEEN REJECTED, THE 14 AUTHORITY SHALL DEMONSTRATE THAT THE FEASIBILITY AND COST- 15 EFFECTIVENESS OF THAT ALTERNATE MEANS HAVE BEEN CONSIDERED. 16 AS USED IN THIS PARAGRAPH, "FINDING OF SPECIAL OPPORTUNITY" 17 SHALL MEAN A WRITTEN DETERMINATION BY THE BOARD THAT 18 EXCLUSION OF A REAL ESTATE-RELATED MATTER FROM BIDDING 19 PROCEDURES, AS PROVIDED IN THIS CHAPTER OR ANY OTHER LAW, 20 WILL BE IN THE BEST INTEREST OF THE AUTHORITY AND WILL BE 21 COMPATIBLE WITH THE AUTHORITY'S BASIC FUNCTION AS A PUBLIC 22 TRANSPORTATION PROVIDER, CONSIDERING THE NATURE OF THE REAL 23 ESTATE-RELATED MATTER WITH RESPECT TO WHICH THE AUTHORITY 24 PROPOSES TO CONTRACT. ANY FINDING OF SPECIAL OPPORTUNITY 25 SHALL INCLUDE THE BASIS ON WHICH THE FINDING OF SPECIAL 26 OPPORTUNITY IS BEING MADE. 27 (25) TO LEASE PROPERTY OR CONTRACT FOR SERVICE, 28 INCLUDING MANAGERIAL AND OPERATING SERVICE, WHENEVER IT CAN 29 MORE EFFICIENTLY AND EFFECTIVELY SERVE THE PUBLIC BY SO 30 DOING, RATHER THAN CONDUCTING ITS OWN OPERATIONS WITH ITS OWN 19930H0878B1975 - 42 -
1 PROPERTY. 2 (26) TO HAVE THE RIGHT TO USE ANY PUBLIC ROAD, STREET, 3 WAY, HIGHWAY, BRIDGE OR TUNNEL FOR THE OPERATION OF A 4 TRANSPORTATION SYSTEM WITHIN THE METROPOLITAN AREA. IN ALL 5 CASES INVOLVING THE FACILITIES OF A RAILROAD, ANY OPERATIONS 6 OF WHICH EXTEND BEYOND THE METROPOLITAN AREA, THE EXERCISE OF 7 THIS RIGHT BY THE AUTHORITY SHALL BE SUBJECT TO THE 8 JURISDICTION OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION 9 UNDER TITLE 66 (RELATING TO PUBLIC UTILITIES) ONLY TO THE 10 EXTENT THAT THE OPERATIONS EXTEND BEYOND THE METROPOLITAN 11 AREA. 12 (27) TO ACT AS AGENT OF ANY GOVERNMENT AGENCY OR ANY 13 FEDERAL AGENCY FOR THE PUBLIC PURPOSES SET FORTH IN THIS 14 CHAPTER. 15 (28) TO MAKE AVAILABLE TO ANY GOVERNMENT AGENCY THE 16 RECOMMENDATIONS OF THE AUTHORITY AFFECTING ANY AREA IN THE 17 AUTHORITY'S FIELD OF OPERATION OR PROPERTY THEREIN, WHICH IT 18 MAY DEEM LIKELY TO PROMOTE THE PUBLIC HEALTH, MORALS, SAFETY 19 AND WELFARE. 20 (29) TO FORM PLANS FOR THE IMPROVEMENT OF MASS 21 TRANSPORTATION AND THE OPERATION OF A TRANSPORTATION SYSTEM 22 IN ORDER TO PROMOTE THE ECONOMIC DEVELOPMENT OF THE 23 METROPOLITAN AREA IN WHICH THE TRANSPORTATION AUTHORITY 24 OPERATES, TO MAKE RECOMMENDATIONS CONCERNING MASS 25 TRANSPORTATION FACILITIES WHICH THE AUTHORITY DOES NOT OWN OR 26 OPERATE, TO MAKE RECOMMENDATIONS CONCERNING THROUGHWAYS AND 27 ARTERIAL HIGHWAY CONNECTIONS TO THE DEPARTMENT AND TO OTHER 28 APPROPRIATE GOVERNMENTAL BODIES AND OTHERWISE TO COOPERATE 29 WITH ALL SUCH GOVERNMENTAL BODIES. THE AUTHORITY SHALL GIVE 30 ADVANCE NOTICE TO THE DEPARTMENT OF ANY PLANS WHICH IT MAY 19930H0878B1975 - 43 -
1 HAVE FOR THE OCCUPATION OR USE OF ANY PART OF ANY STATE 2 HIGHWAY. 3 (30) TO REHABILITATE, RECONSTRUCT AND EXTEND AS POSSIBLE 4 ALL PORTIONS OF ANY TRANSPORTATION SYSTEM ACQUIRED BY THE 5 AUTHORITY AND TO MAINTAIN AT ALL TIMES A FAST, RELIABLE AND 6 ECONOMICAL TRANSPORTATION SYSTEM SUITABLE AND ADAPTED TO THE 7 NEEDS OF THE MUNICIPALITIES SERVED BY THE AUTHORITY AND FOR 8 SAFE, COMFORTABLE AND CONVENIENT SERVICE. TO THAT END, THE 9 BOARD SHALL MAKE EVERY EFFORT TO UTILIZE HIGH-SPEED RIGHTS- 10 OF-WAY, PRIVATE OR OTHERWISE, TO THE MAXIMUM EXTENT 11 PRACTICABLE TO AVOID AIR POLLUTION BY ITS VEHICLES, TO 12 ABANDON NO PHYSICAL PROPERTY WHICH THE AUTHORITY HAS 13 DETERMINED RETAINS CONTINUED USEFULNESS TO THE AUTHORITY AND 14 TO EXTEND ITS RAIL AND HIGHWAY SERVICES INTO AREAS WHICH HAVE 15 SUFFICIENT NEED FOR THEM TO ECONOMICALLY OR STRATEGICALLY 16 JUSTIFY SUCH EXTENSION. 17 (31) TO ADOPT, CONSISTENT WITH THE POLICIES OF THIS ACT 18 AND FROM TIME TO TIME AMEND A COMPREHENSIVE TRANSPORTATION 19 PLAN. A PUBLIC HEARING SHALL BE CONDUCTED PRIOR TO ADOPTION 20 OR AMENDMENT. NOTICE OF THE PUBLIC HEARING SHALL BE PUBLISHED 21 IN TWO NEWSPAPERS OF GENERAL CIRCULATION AND A PUBLICATION 22 SPECIFICALLY DESIGNED TO REACH MINORITIES NOT FEWER THAN 30 23 DAYS PRIOR TO THE HEARING. 24 (32) TO DO ALL ACTS AND THINGS NECESSARY FOR THE 25 PROMOTION OF ITS BUSINESS AND THE GENERAL WELFARE OF THE 26 AUTHORITY TO CARRY OUT THE POWERS GRANTED TO IT BY THIS 27 CHAPTER OR ANY OTHER STATUTE. NOTWITHSTANDING ANY OTHER 28 PROVISION OF LAW, THE BOARD SHALL ADOPT PROCEDURES AND 29 PRACTICES TO IMPLEMENT THE PROVISIONS OF THIS CHAPTER BY 30 RESOLUTION OF THE BOARD. 19930H0878B1975 - 44 -
1 (B) PUBLIC HIGHWAYS.--PRIVATE RIGHTS AND PROPERTY IN THE 2 BEDS OF EXISTING PUBLIC HIGHWAYS VACATED IN ORDER TO FACILITATE 3 THE PURPOSES OF THE AUTHORITY SHALL NOT BE DEEMED DESTROYED OR 4 OUSTED BY REASON OF THE VACATION, BUT SHALL BE ACQUIRED OR 5 RELOCATED BY THE AUTHORITY IN THE SAME MANNER AS OTHER PROPERTY. 6 (C) CERTAIN POWERS DENIED.--THE AUTHORITY SHALL HAVE NO 7 POWER, AT ANY TIME OR IN ANY MANNER, TO PLEDGE THE CREDIT OR 8 TAXING POWER OF THE COMMONWEALTH OR ANY OTHER GOVERNMENT AGENCY, 9 NOR SHALL ANY OF THE AUTHORITY'S OBLIGATIONS BE DEEMED TO BE 10 OBLIGATIONS OF THE COMMONWEALTH OR OF ANY OTHER GOVERNMENT 11 AGENCY, NOR SHALL THE COMMONWEALTH OR ANY GOVERNMENT AGENCY BE 12 LIABLE FOR THE PAYMENT OF PRINCIPAL OR INTEREST ON SUCH 13 OBLIGATIONS. 14 (D) NO POWER TO LEVY TAXES.--THE AUTHORITY SHALL NOT HAVE 15 POWER TO LEVY TAXES FOR ANY PURPOSE WHATSOEVER. 16 § 1742. POWER TO ACQUIRE PROPERTY. 17 (A) GENERAL RULE.-- 18 (1) THE AUTHORITY SHALL HAVE POWER TO ACQUIRE BY 19 PURCHASE, CONDEMNATION, LEASE, GIFT OR OTHERWISE ALL OR ANY 20 PART OF THE PROPERTY OF ANY PUBLIC UTILITY OPERATING A 21 TRANSPORTATION SYSTEM WITHIN THE METROPOLITAN AREA, 22 INCLUDING, BUT NOT LIMITED TO, THE PLANT, EQUIPMENT, PROPERTY 23 RIGHTS IN PROPERTY RESERVE FUNDS, EMPLOYEES' PENSION OR 24 RETIREMENT FUNDS, SPECIAL FUNDS, FRANCHISES, LICENSES, 25 PATENTS, PERMITS, OPERATING RIGHTS AND PAPER DOCUMENTS AND 26 RECORDS, WHICH PROPERTY SHALL BE LOCATED WITHIN THE 27 METROPOLITAN AREA AND SHALL BE APPROPRIATE FOR THE PURPOSES 28 FOR WHICH THE AUTHORITY IS ESTABLISHED, AS WELL AS ALL OR ANY 29 PART OF THE RIGHT-OF-WAY, EQUIPMENT, FIXED FACILITIES AND 30 OTHER PROPERTY OF ANY KIND OF ANY UTILITY, EXTENDING BEYOND 19930H0878B1975 - 45 -
1 THE BOUNDARIES OF THE METROPOLITAN AREA AND FORMING OR 2 CAPABLE OF FORMING PART OF AN INTEGRATED SUBURBAN RAPID 3 TRANSIT OR RAIL TRANSPORTATION FACILITY, CONNECTING WITH 4 RAPID TRANSIT OR ELECTRIC RAILWAY LINES OF THE AUTHORITY IN 5 SUPERHIGHWAYS OR ELSEWHERE. NO INTEREST IN THE RIGHT-OF-WAY 6 OF A RAILROAD COMPANY THE OPERATIONS OF WHICH EXTEND BEYOND 7 THE METROPOLITAN AREA SHALL BE ACQUIRED OR OCCUPIED UNDER THE 8 POWER OF EMINENT DOMAIN UNDER THIS SECTION OR ANY OTHER 9 SECTION WITHOUT THE CONSENT OF THE RAILROAD. 10 (2) SUCH PROPERTIES, UPON ACQUISITION BY OR LEASE TO THE 11 AUTHORITY, SHALL BECOME AND BE OPERATED AS PART OF THE 12 TRANSPORTATION SYSTEM OF THE AUTHORITY, AND THE AUTHORITY 13 SHALL HAVE ALL POWERS IN CONNECTION WITH SUCH PROPERTIES AND 14 SUCH OPERATIONS AS ARE CONFERRED BY THIS CHAPTER. 15 (3) THE AUTHORITY SHALL ALSO HAVE THE POWER TO ENTER 16 INTO AGREEMENTS TO OPERATE ANY LINES LOCATED OR EXTENDING 17 BEYOND THE BOUNDARIES OF THE METROPOLITAN AREA, SUCH 18 AGREEMENTS TO BE SUBJECT TO ALL OTHER PROVISIONS OF THIS 19 CHAPTER. THE AUTHORITY SHALL HAVE POWER TO LEASE OR PURCHASE 20 ANY MUNICIPALLY OWNED LOCAL TRANSPORTATION SUBWAYS OR OTHER 21 MUNICIPALLY OWNED LOCAL TRANSPORTATION FACILITIES FOR 22 OPERATION AND MAINTENANCE BY THE AUTHORITY. 23 (B) CONDEMNATION PROCEDURE.-- 24 (1) WHENEVER THE AUTHORITY SHALL CONDEMN ALL OR 25 SUBSTANTIALLY ALL OF THE PROPERTY OF A TRANSPORTATION SYSTEM, 26 IT MAY ELECT TO COMMENCE CONDEMNATION PROCEEDINGS WITHOUT 27 IMMEDIATE PASSAGE OF TITLE BY INSERTING A PROVISION TO THAT 28 EFFECT IN THE DECLARATION OF TAKING. IN THAT EVENT, THE 29 PROVISIONS OF SECTION 402 OF THE ACT OF JUNE 22, 1964 30 (SP.SESS., P.L.84, NO.6), KNOWN AS THE EMINENT DOMAIN CODE, 19930H0878B1975 - 46 -
1 SHALL NOT APPLY, AND THE TITLE SHALL NOT PASS TO THE 2 AUTHORITY AND THE AUTHORITY SHALL NOT BE ENTITLED TO 3 POSSESSION UNTIL PAYMENT TO THE CONDEMNEE OR INTO COURT OF 4 THE AMOUNT OF THE JUST COMPENSATION PAYABLE FOR THE PROPERTY 5 TAKEN, DETERMINED AS OF THE DATE OF FILING OF THE DECLARATION 6 OF TAKING, AS FINALLY DETERMINED IN ACCORDANCE WITH THE 7 PROVISIONS OF THIS ARTICLE, PROVIDED THAT SUCH PAYMENT OCCURS 8 WITHIN ONE YEAR OF THE FINAL DETERMINATION. 9 (2) FROM AND AFTER THE FILING OF THE DECLARATION OF 10 TAKING UNTIL THE PAYMENT TO THE CONDEMNEE OF JUST 11 COMPENSATION FOR THE CONDEMNED PROPERTY, THE AUTHORITY SHALL 12 HAVE THE RIGHT TO PETITION THE COURT HAVING JURISDICTION OF 13 THE PROCEEDINGS TO PREVENT WASTE, SUBSTANTIAL DISPOSITION OR 14 ANY TRANSACTION WITH RESPECT TO THE CONDEMNED PROPERTY OTHER 15 THAN IN THE ORDINARY COURSE OF BUSINESS WITHOUT OBTAINING THE 16 PRIOR WRITTEN CONSENT OF THE AUTHORITY. THE CONDEMNEE SHALL 17 HAVE NO RIGHT TO TENDER POSSESSION OF THE PROPERTY OR 18 OTHERWISE TO DEMAND PAYMENT OF ANY COMPENSATION PRIOR TO THE 19 PASSAGE OF TITLE. 20 § 1743. POWER TO CONTRACT WITH PUBLIC UTILITIES. 21 THE AUTHORITY SHALL HAVE POWER TO ENTER INTO AGREEMENTS WITH 22 ANY PUBLIC UTILITY OPERATING A RAILROAD OR ANY OTHER 23 TRANSPORTATION FACILITY, EITHER WITHIN OR WITHOUT THE 24 METROPOLITAN AREA, FOR THE JOINT USE OF ANY PROPERTY OF THE 25 AUTHORITY OR PUBLIC UTILITY OR THE ESTABLISHMENT OF THROUGH 26 ROUTES, JOINT FARES AND TRANSFER OF PASSENGERS. THE AUTHORITY 27 SHALL HAVE POWER TO ENTER INTO AGREEMENTS WITH ANY PUBLIC 28 UTILITY, EITHER WITHIN OR WITHOUT THE METROPOLITAN AREA, WHICH 29 IN THE JUDGMENT OF THE AUTHORITY ARE NECESSARY AND CONVENIENT 30 FOR CARRYING OUT THE PURPOSES OF THIS CHAPTER. 19930H0878B1975 - 47 -
1 § 1744. POWER OF EMINENT DOMAIN. 2 (A) UTILITY STRUCTURES.-- 3 (1) THE AUTHORITY SHALL HAVE POWER, SUBJECT TO RELEVANT 4 PROVISIONS OF SECTION 1741(A)(26) (RELATING TO GENERAL 5 POWERS), TO REQUIRE PERSONS OR CORPORATIONS OWNING OR 6 OPERATING PUBLIC UTILITY STRUCTURES AND APPLIANCES IN, UPON, 7 UNDER, OVER, ACROSS OR ALONG THE PUBLIC ROADS, STREETS OR 8 OTHER PUBLIC WAYS IN WHICH THE AUTHORITY HAS THE RIGHT TO 9 OWN, CONSTRUCT, OPERATE OR MAINTAIN TRANSPORTATION FACILITIES 10 TO REMOVE THE PUBLIC UTILITY STRUCTURES AND APPLIANCES FROM 11 THEIR LOCATIONS. IF ANY PERSON OR CORPORATION OWNING OR 12 OPERATING PUBLIC UTILITY STRUCTURES AND APPLIANCES FAILS OR 13 REFUSES TO REMOVE OR RELOCATE THEM, THE AUTHORITY MAY REMOVE 14 OR RELOCATE THEM. THE AUTHORITY SHALL PROVIDE THE NEW 15 LOCATION WHICH THE STRUCTURES OR APPLIANCES AS RELOCATED 16 SHALL OCCUPY, AND TO THAT END THE AUTHORITY IS HEREBY 17 AUTHORIZED TO ACQUIRE BY PURCHASE OR BY THE EXERCISE OF THE 18 POWER OF EMINENT DOMAIN ANY NECESSARY LAND OR RIGHT-OF-WAY 19 FOR SUCH PURPOSE, IF THE NEW LOCATION SHALL NOT BE IN, ON OR 20 ABOVE A HIGHWAY, ROAD OR STREET. THE EXACT NEW LOCATION SHALL 21 BE CHOSEN BY AGREEMENT OF THE AUTHORITY AND THE UTILITY. UPON 22 THE COMPLETION OF THE RELOCATION, THE AUTHORITY SHALL 23 REIMBURSE THE PUBLIC UTILITY FOR THE COST OF RELOCATION WHICH 24 SHALL BE THE ENTIRE AMOUNT PAID BY THE UTILITY PROPERLY 25 ATTRIBUTABLE TO THE RELOCATION OF THE STRUCTURE OR APPLIANCE 26 AFTER DEDUCTING THE COST OF ANY INCREASE IN THE SERVICE 27 CAPACITY OF THE NEW STRUCTURE OR APPLIANCE AND ANY SALVAGE 28 VALUE DERIVED FROM THE OLD STRUCTURE OR APPLIANCE. 29 (2) IF AN ISSUE SHALL ARISE BETWEEN THE AUTHORITY AND 30 THE PUBLIC UTILITY AS TO THE AMOUNT OF THE COST OF RELOCATION 19930H0878B1975 - 48 -
1 OR THE NEW LOCATION EITHER PARTY MAY INSTITUTE A PROCEEDING 2 BY COMPLAINT BEFORE THE PENNSYLVANIA PUBLIC UTILITY 3 COMMISSION, WHICH IS HEREBY GIVEN EXCLUSIVE JURISDICTION TO 4 HEAR AND DETERMINE THE ISSUE. APPEAL FROM THE ORDER OF THE 5 COMMISSION IN ANY PROCEEDING MAY BE TAKEN IN THE SAME MANNER 6 AS IS PRESCRIBED BY LAW FOR APPEALS FROM OTHER ORDERS OF THE 7 COMMISSION. 8 (B) EMINENT DOMAIN.-- 9 (1) THE AUTHORITY SHALL HAVE THE RIGHT OF EMINENT DOMAIN 10 WHICH MAY BE EXERCISED, EITHER WITHIN OR WITHOUT THE 11 METROPOLITAN AREA, TO ACQUIRE PRIVATE PROPERTY AND PROPERTY 12 DEVOTED TO ANY PUBLIC USE WHICH IS NECESSARY FOR THE PURPOSES 13 OF THE AUTHORITY, EXCEPT PROPERTY OF A PUBLIC UTILITY 14 OPERATING TRANSPORTATION FACILITIES EXTENDING BEYOND THE 15 BOUNDARIES OF THE METROPOLITAN AREA. 16 (2) THE AUTHORITY SHALL HAVE THE RIGHT OF EMINENT DOMAIN 17 TO ACQUIRE PROPERTY OF ANY RAILROAD WHICH PROPERTY IS NOT 18 USED FOR OR IN CONNECTION WITH THE TRANSPORTATION OF PERSONS 19 OR PROPERTY AND TO ACQUIRE RIGHTS AND EASEMENTS ACROSS, UNDER 20 OR OVER THE RIGHT-OF-WAY OF SUCH RAILROAD WHENEVER THE 21 AUTHORITY SHALL ACQUIRE THE PRIVATE RIGHT-OF-WAY OR OTHER 22 PROPERTY OF A PUBLIC UTILITY USED OR USEFUL IN ITS SERVICE TO 23 THE PUBLIC. 24 (3) IT SHALL, BEFORE REQUIRING THE REMOVAL OF THE 25 EXISTING STRUCTURES AND APPLIANCES, PROVIDE A NEW LOCATION 26 FOR THE STRUCTURES AND APPLIANCES AND, UPON THE COMPLETION OF 27 RELOCATION, REIMBURSE THE PUBLIC UTILITY FOR THE COST THEREOF 28 IN THE MANNER PROVIDED IN SUBSECTION (A). 29 (C) TITLE.--TITLE TO ANY PROPERTY ACQUIRED BY AN AUTHORITY 30 THROUGH EMINENT DOMAIN SHALL BE AN ABSOLUTE OWNERSHIP OR FEE 19930H0878B1975 - 49 -
1 SIMPLE TITLE UNLESS A LESSER TITLE SHALL BE DESIGNATED 2 SPECIFICALLY IN THE EMINENT DOMAIN PROCEEDINGS. 3 (D) PUBLIC UTILITIES.--REAL AND PERSONAL PROPERTY OF ANY 4 KIND WHATEVER BELONGING TO A PUBLIC UTILITY CORPORATION 5 PROVIDING TRANSPORTATION OR TRANSPORTATION-RELATED SERVICES MAY 6 BE ACQUIRED WITHOUT THE APPROVAL OF THE PENNSYLVANIA PUBLIC 7 UTILITY COMMISSION. IN ALL CASES INVOLVING THE FACILITIES OF A 8 RAILROAD, ANY OPERATIONS OF WHICH EXTEND BEYOND THE METROPOLITAN 9 AREA, THE EXERCISE OF THE POWER OF THE AUTHORITY UNDER THIS 10 SUBSECTION SHALL BE SUBJECT TO THE JURISDICTION OF THAT 11 COMMISSION UNDER TITLE 66 (RELATING TO PUBLIC UTILITIES). 12 (E) CERTAIN PROPERTY EXEMPT.--NO PROPERTY OWNED OR USED BY 13 THE UNITED STATES, THE COMMONWEALTH, ANY POLITICAL SUBDIVISION 14 THEREOF OR ANY BODY POLITIC AND CORPORATE ORGANIZED AS AN 15 AUTHORITY UNDER ANY LAW OF THIS COMMONWEALTH OR BY ANY AGENCY OF 16 ANY OF THEM, NOR PROPERTY USED FOR BURIAL PURPOSES OR PLACES OF 17 PUBLIC WORSHIP, SHALL BE TAKEN UNDER THE RIGHT OF EMINENT DOMAIN 18 WITHOUT THE CONSENT OF THE OWNER OR USER THEREOF. 19 (F) NEGOTIATION.--BEFORE EXERCISING THE POWER OF EMINENT 20 DOMAIN, REASONABLE EFFORTS SHALL BE MADE BY THE AUTHORITY TO 21 ACHIEVE THE DESIRED RESULT THROUGH NEGOTIATION. 22 § 1745. USE OF WAYS OCCUPIED BY PASSENGER UTILITIES. 23 THE AUTHORITY SHALL NOT HAVE THE RIGHT TO USE ANY STREET OR 24 PUBLIC WAY, OCCUPIED PRIOR TO JANUARY 15, 1964, BY A PUBLIC 25 UTILITY ENGAGED IN LOCAL PASSENGER TRANSPORTATION, FOR A 26 COMPETING PURPOSE, WITHOUT THE AGREEMENT OF THE PUBLIC UTILITY. 27 § 1746. TRANSFER OF RECORDS BY PENNSYLVANIA PUBLIC UTILITY 28 COMMISSION. 29 IN CASE THE AUTHORITY ACQUIRES THE PLANT, EQUIPMENT, PROPERTY 30 AND RIGHTS IN PROPERTY OF ANY PUBLIC UTILITY USED OR USEFUL IN 19930H0878B1975 - 50 -
1 THE OPERATION OF A TRANSPORTATION SYSTEM, THE PENNSYLVANIA 2 PUBLIC UTILITY COMMISSION SHALL TRANSFER AND DELIVER TO THE 3 BOARD, UPON ITS DEMAND, IN WRITING, ALL BOOKS, PAPERS AND 4 RECORDS IN CONTROL OF THE COMMISSION AFFECTING THE PUBLIC 5 UTILITY EXCLUSIVELY. 6 § 1747. ACQUISITION OF EQUIPMENT. 7 (A) GENERAL RULE.--THE AUTHORITY SHALL HAVE POWER TO 8 PURCHASE OR OTHERWISE ACQUIRE THE OWNERSHIP OR USE OF OR ACCESS 9 TO EQUIPMENT, SUCH AS CARS, TROLLEY BUSES, STREET CARS, BUSES, 10 MONORAILS, RAILROAD MOTIVE POWER, TRAINS, RAILROAD PASSENGER 11 CARS AND EQUIPMENT, SUBWAY PASSENGER CARS AND EQUIPMENT, 12 ELEVATED PASSENGER OR PASSENGER AND RAIL ROLLING STOCK, SELF- 13 PROPELLED AND GALLERY CARS, LOCOMOTIVES, RAILS, LINES, POLES AND 14 WIRES, AS WELL AS ANY EQUIPMENT NECESSARY FOR THE IMPROVEMENT OF 15 OR OVERHAUL OF ANY OF THE FOREGOING, AND ANY OTHER EQUIPMENT 16 WHICH, IN THE JUDGMENT OF THE AUTHORITY, MAY BE USEFUL IN THE 17 OPERATION OF A TRANSPORTATION SYSTEM. THE AUTHORITY SHALL HAVE 18 THE POWER TO EXECUTE AGREEMENTS, LEASES AND EQUIPMENT TRUST 19 CERTIFICATES IN A FORM SATISFACTORY TO THE AUTHORITY TO EFFECT 20 THE PURCHASE OR ACQUISITION AND MAY DISPOSE OF SUCH EQUIPMENT 21 TRUST CERTIFICATES, PROVIDED THAT THE CERTIFICATES SHALL BE 22 OFFERED FOR SALE IN A MANNER SIMILAR TO THAT PROVIDED FOR THE 23 SALE OF BONDS IN THIS CHAPTER. ALL MONEY REQUIRED TO BE PAID BY 24 THE AUTHORITY UNDER THE PROVISIONS OF THE AGREEMENTS, LEASES AND 25 EQUIPMENT TRUST CERTIFICATES SHALL BE PAYABLE SOLELY FROM THE 26 REVENUE OR INCOME TO BE DERIVED FROM THE TRANSPORTATION SYSTEM 27 AND FROM GRANTS AND LOANS AS PROVIDED ELSEWHERE IN THIS CHAPTER. 28 PAYMENT FOR THE EQUIPMENT OR RENTALS THEREFOR MAY BE MADE IN 29 INSTALLMENTS AND THE DEFERRED INSTALLMENTS MAY BE EVIDENCED BY 30 EQUIPMENT TRUST CERTIFICATES PAYABLE SOLELY FROM SUCH REVENUE, 19930H0878B1975 - 51 -
1 INCOME, GRANTS OR LOANS AND TITLE TO THE EQUIPMENT SHALL NOT 2 VEST IN THE AUTHORITY UNTIL THE EQUIPMENT TRUST CERTIFICATES ARE 3 PAID. 4 (B) TRUSTEE.--THE AGREEMENT TO PURCHASE MAY DIRECT THE 5 VENDOR TO SELL AND ASSIGN THE EQUIPMENT TO A BANK, BANK AND 6 TRUST COMPANY OR TRUST COMPANY DULY AUTHORIZED TO TRANSACT 7 BUSINESS IN THIS COMMONWEALTH AS TRUSTEE FOR THE BENEFIT AND 8 SECURITY OF THE EQUIPMENT TRUST CERTIFICATES AND MAY DIRECT THE 9 TRUSTEE TO DELIVER THE EQUIPMENT TO ONE OR MORE DESIGNATED 10 OFFICERS OF THE AUTHORITY AND MAY AUTHORIZE THE TRUSTEE 11 SIMULTANEOUSLY THEREWITH TO EXECUTE AND DELIVER A LEASE OF THE 12 EQUIPMENT TO THE AUTHORITY. 13 (C) AUTHORIZATION AND ACKNOWLEDGMENT.--THE AGREEMENTS AND 14 LEASES SHALL BE DULY ACKNOWLEDGED BEFORE SOME PERSON AUTHORIZED 15 BY LAW TO TAKE ACKNOWLEDGMENTS OF DEEDS AND IN THE FORM REQUIRED 16 FOR ACKNOWLEDGMENTS OF DEEDS, AND SUCH AGREEMENTS, LEASES AND 17 EQUIPMENT TRUST CERTIFICATES SHALL BE AUTHORIZED BY RESOLUTION 18 OF THE BOARD AND SHALL CONTAIN SUCH COVENANTS, CONDITIONS AND 19 PROVISIONS AS MAY BE DEEMED NECESSARY OR APPROPRIATE TO INSURE 20 THE PAYMENT OF THE EQUIPMENT TRUST CERTIFICATES FROM THE REVENUE 21 OR INCOME TO BE DERIVED FROM THE TRANSPORTATION SYSTEM. 22 (D) PROVISIONS OF AGREEMENTS--THE COVENANTS, CONDITIONS AND 23 PROVISIONS OF THE AGREEMENTS, LEASES AND EQUIPMENT TRUST 24 CERTIFICATES SHALL NOT CONFLICT WITH ANY OF THE PROVISIONS OF 25 ANY TRUST INDENTURE SECURING THE PAYMENT OF BONDS OF THE 26 AUTHORITY. 27 (E) FILING.--AN EXECUTED COPY OF EACH AGREEMENT AND LEASE 28 SHALL BE FILED IN THE OFFICE OF THE SECRETARY OF THE 29 COMMONWEALTH WHO SHALL BE ENTITLED TO RECEIVE $1 FOR EACH COPY 30 FILED. THIS FILING SHALL CONSTITUTE NOTICE TO ANY SUBSEQUENT 19930H0878B1975 - 52 -
1 JUDGMENT CREDITOR OR ANY SUBSEQUENT PURCHASER. EACH VEHICLE SO 2 PURCHASED AND LEASED SHALL HAVE THE NAME OF THE OWNER AND LESSOR 3 PLAINLY MARKED UPON BOTH SIDES THEREOF, FOLLOWED BY THE WORDS 4 "OWNER AND LESSOR." 5 § 1748. TRANSFERS OF FACILITIES OR THINGS OF VALUE TO ANY 6 AUTHORITY. 7 ANY PERSON MAY AND IS HEREBY AUTHORIZED TO SELL, LEASE, LEND, 8 GRANT, CONVEY, TRANSFER OR PAY OVER TO ANY AUTHORITY, WITH OR 9 WITHOUT CONSIDERATION, ANY PROJECT OR ANY PART OR PARTS THEREOF, 10 OR ANY INTEREST IN REAL OR PERSONAL PROPERTY OR ANY FUNDS 11 AVAILABLE FOR BUILDING CONSTRUCTION OR IMPROVEMENT PURPOSES, 12 INCLUDING THE PROCEEDS OF BONDS PREVIOUSLY OR HEREAFTER ISSUED 13 FOR BUILDING CONSTRUCTION OR IMPROVEMENT PURPOSES, OR ANY MONEY 14 OR THING OF VALUE, INCLUDING SERVICES, WHICH MAY BE USED BY THE 15 AUTHORITY IN THE CONSTRUCTION, ACQUISITION, IMPROVEMENT, 16 MAINTENANCE OR OPERATION OF ANY PROJECT OR FOR ANY OTHER OF ITS 17 CORPORATE PURPOSES, ANY OTHER LAW TO THE CONTRARY 18 NOTWITHSTANDING. 19 § 1749. COMPACTS TO FINANCE OPERATIONS AND PARTICULAR PROJECTS. 20 (A) GENERAL RULE.--THE COUNTIES AND MUNICIPALITIES IN ANY 21 METROPOLITAN AREA SHALL ENTER INTO A COMPACT OR COMPACTS AMONG 22 THEMSELVES AND/OR WITH THE AUTHORITY TO PROVIDE FOR MEETING THE 23 AUTHORITY'S CAPITAL OR OPERATING BUDGET BY APPROPRIATIONS, 24 ANNUAL OR OTHERWISE, OF SUCH SUMS AND IN SUCH PROPORTIONS AS MAY 25 BE AGREED UPON IN THE COMPACT TO BE PAID BY EACH SIGNATORY PARTY 26 THERETO. THE OBLIGATION INCURRED THEREBY SHALL BE FOR THE TERM 27 AS SET FORTH IN THE COMPACT WITHOUT REGARD TO THE PROVISIONS OF 28 ANY LAW, ORDINANCE OR REGULATION TO THE CONTRARY AND SHALL 29 CONSTITUTE A COMMITMENT AND OBLIGATION, BINDING AND ABSOLUTE, ON 30 THE PART OF EACH SIGNATORY PARTY TO APPROPRIATE AND PAY OVER THE 19930H0878B1975 - 53 -
1 NECESSARY FUNDS IN ACCORDANCE THEREWITH. THE OPERATING BUDGET 2 SHALL INCLUDE ALL SUMS OF MONEY NECESSARY FOR THE FORMATION AND 3 ORGANIZATION OF ANY AUTHORITY AND ALL ITEMS OF OPERATING 4 EXPENSES IN CONNECTION WITH THE AUTHORITY, AS WELL AS NECESSARY 5 FUNDS FOR PLANNING AND RESEARCH APPROPRIATE AND CONSISTENT WITH 6 THE PURPOSES OF THIS CHAPTER AND ANY COMPACT ENTERED INTO UNDER 7 THIS CHAPTER. 8 (B) FINANCING OF PARTICULAR PROJECTS.--A COMPACT MAY ALSO 9 PROVIDE FOR THE FINANCING OF A PARTICULAR MASS TRANSPORTATION 10 PROJECT IN SUCH MANNER AS SHALL BE PROVIDED FOR IN THE COMPACT. 11 (C) COMMITMENT OF PARTY.--WHENEVER A PARTY SIGNATORY TO A 12 COMPACT THEREBY EXPRESSES ITS APPROVAL OF THE BUDGET FOR 13 FINANCING A PARTICULAR PROJECT, THIS SHALL THEN CONSTITUTE A 14 COMMITMENT AND OBLIGATION, BINDING AND ABSOLUTE, ON THE PART OF 15 THE PARTY SIGNATORY TO APPROPRIATE THE NECESSARY FUNDS IN 16 ACCORDANCE THEREWITH. 17 (D) COMMITMENT OF COUNTY OR MUNICIPALITY.--NO COMMITMENT OR 18 OBLIGATION INVOLVING THE PAYMENT OF MONEYS TO OR ON BEHALF OF 19 THE AUTHORITY SHALL EXIST IN ANY INSTANCE ON THE PART OF ANY 20 COUNTY OR OTHER MUNICIPALITY WITHIN THE METROPOLITAN AREA UNLESS 21 AND UNTIL THE COMMITMENT OR OBLIGATION SHALL FIRST HAVE BEEN 22 EXPRESSLY AND LAWFULLY UNDERTAKEN AND ASSUMED BY THE COUNTY OR 23 OTHER MUNICIPALITY. 24 § 1750. CONTRACTS, PROCUREMENT AND SALE OF PROPERTY. 25 (A) COMPETITIVE BIDS.--EXCEPT IN THE PURCHASE OF UNIQUE 26 ARTICLES OR ARTICLES WHICH, FOR ANY OTHER REASON, CANNOT BE 27 OBTAINED IN THE OPEN MARKET AND EXCEPT AS PROVIDED IN SECTION 28 1741 (RELATING TO GENERAL POWERS) AND AS PROVIDED IN THIS 29 CHAPTER, COMPETITIVE BIDS SHALL BE SECURED BEFORE ANY PURCHASE 30 OR SALE, BY CONTRACT OR OTHERWISE, IS MADE OR BEFORE ANY 19930H0878B1975 - 54 -
1 CONTRACT IS AWARDED FOR CONSTRUCTION, ALTERATIONS, SUPPLIES, 2 EQUIPMENT, REPAIRS OR MAINTENANCE OR FOR RENDERING ANY SERVICES 3 TO THE AUTHORITY OTHER THAN PROFESSIONAL SERVICES. PURCHASES 4 SHALL BE MADE FROM OR THE CONTRACT SHALL BE AWARDED TO THE 5 LOWEST RESPONSIVE, RESPONSIBLE BIDDER. SALES SHALL BE MADE TO 6 THE HIGHEST RESPONSIVE, RESPONSIBLE BIDDER. NO PURCHASE OF ANY 7 UNIQUE ARTICLE OR OTHER ARTICLES WHICH CANNOT BE OBTAINED IN THE 8 OPEN MARKET SHALL BE MADE WITHOUT EXPRESS APPROVAL OF THE BOARD 9 WHERE THE AMOUNT INVOLVED IS IN EXCESS OF $25,000. THE AUTHORITY 10 SHALL NOT BE SUBJECT TO THE ACT OF NOVEMBER 26, 1978 (P.L.1309, 11 NO.317), ENTITLED "AN ACT REGULATING THE AWARDING AND EXECUTION 12 OF CERTAIN PUBLIC CONTRACTS; PROVIDING FOR CONTRACT PROVISIONS 13 RELATING TO THE RETENTION, INTEREST AND PAYMENT OF FUNDS PAYABLE 14 UNDER THE CONTRACTS; AND REPEALING INCONSISTENT ACTS." NOTHING 15 IN THIS SECTION OR ANY OTHER LAW OF THIS COMMONWEALTH SHALL 16 REQUIRE THE AUTHORITY TO COMPETITIVELY BID ARCHITECTURAL DESIGN, 17 ENGINEERING, CONSTRUCTION MANAGEMENT OR OTHER PROFESSIONAL 18 SERVICES REQUIRED BY THE AUTHORITY. 19 (B) PROCEDURE.--ALL PURCHASES AND SALES IN EXCESS OF $25,000 20 SHALL BE AWARDED AFTER ADVERTISING IN A LOCAL NEWSPAPER OF 21 GENERAL CIRCULATION IN THE METROPOLITAN AREA AT LEAST TWO WEEKS 22 PRIOR TO THE BID OPENING. BIDS SHALL BE PUBLICLY OPENED AND READ 23 ALOUD AT A DATE, TIME AND PLACE DESIGNATED IN THE INVITATION TO 24 BID. INVITATIONS TO BID SHALL BE SENT AT LEAST ONE WEEK PRIOR TO 25 THE BID OPENING TO AT LEAST THREE POTENTIAL BIDDERS WHO ARE 26 QUALIFIED TECHNICALLY AND FINANCIALLY TO SUBMIT BIDS, OR, IN 27 LIEU THEREOF, A MEMORANDUM SHALL BE KEPT ON FILE SHOWING THAT 28 LESS THAN THREE POTENTIAL BIDDERS SO QUALIFIED EXIST IN THE 29 MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO OBTAIN BIDS. 30 (C) QUALIFIED VENDORS.--WRITTEN PRICE QUOTATIONS FROM AT 19930H0878B1975 - 55 -
1 LEAST THREE QUALIFIED AND RESPONSIBLE VENDORS SHALL BE SOLICITED 2 FOR ALL PURCHASES AND SALES UNDER $25,000 AND OVER $10,000, OR, 3 IN LIEU THEREOF, A MEMORANDUM APPROVED BY THE GENERAL MANAGER 4 SHALL BE KEPT ON FILE SHOWING THAT LESS THAN THREE VENDORS SO 5 QUALIFIED EXIST IN THE MARKET AREA WITHIN WHICH IT IS 6 PRACTICABLE TO OBTAIN QUOTATIONS, EXCEPT AS PROVIDED IN THIS 7 CHAPTER. 8 (D) SMALL PURCHASES.--PURCHASES OR SALES UNDER $10,000 MAY 9 BE NEGOTIATED WITH OR WITHOUT COMPETITIVE BIDDING UNDER SOUND 10 PROCUREMENT PROCEDURES AS PROMULGATED AND ESTABLISHED BY THE 11 GENERAL MANAGER. 12 (E) WAIVER.--COMPETITIVE BIDDING REQUIREMENTS MAY BE WAIVED 13 IF IT IS DETERMINED BY THE GENERAL MANAGER, OR IN SUCH OTHER 14 MANNER AS THE BOARD MAY PROVIDE, THAT AN EMERGENCY DIRECTLY AND 15 IMMEDIATELY AFFECTING CUSTOMER SERVICE OR PUBLIC HEALTH, SAFETY 16 OR WELFARE REQUIRES IMMEDIATE DELIVERY OF SUPPLIES, MATERIALS, 17 EQUIPMENT OR SERVICES. A RECORD OF CIRCUMSTANCES EXPLAINING THE 18 EMERGENCY SHALL BE SUBMITTED TO THE BOARD AT ITS NEXT REGULAR 19 MEETING AND THEREAFTER KEPT ON FILE. 20 (F) SALE OR LEASE OF REAL PROPERTY.--CONTRACTS FOR THE SALE 21 OR LEASE OF REAL PROPERTY OWNED BY THE AUTHORITY SHALL BE 22 AWARDED AFTER COMPETITIVE BIDDING AS SHOWN IN SUBSECTION (B), 23 EXCEPT AS PROVIDED IN SECTION 1741(22) WHERE THE CONTRACT IS 24 ENTERED INTO WITH THE COMMONWEALTH OR ANY GOVERNMENT AGENCY OR 25 WITH THE UNITED STATES GOVERNMENT OR ANY AGENCY OR 26 INSTRUMENTALITY THEREOF OR AS PROVIDED IN SECTION 1741(24). 27 (G) PROPERTY MANAGEMENT CONTRACTS.--CONTRACTS FOR THE 28 MANAGEMENT OF AUTHORITY-OWNED PROPERTY, SUCH AS BUS ROUTES OR 29 SUBWAY SYSTEMS, MAY BE NEGOTIATED AND AWARDED BY AN AFFIRMATIVE 30 VOTE OF ONE MORE THAN A MAJORITY OF ALL MEMBERS OF THE BOARD. 19930H0878B1975 - 56 -
1 (H) AVOIDANCE PROHIBITED.--REQUIREMENTS SHALL NOT BE SPLIT 2 INTO PARTS FOR THE PURPOSE OF AVOIDING THE PROVISIONS OF THIS 3 SECTION. 4 (I) REJECTION OF BIDS.--THE AUTHORITY SHALL HAVE THE RIGHT 5 TO REJECT ANY OR ALL BIDS OR PARTS OF ANY OR ALL BIDS, WHENEVER, 6 IN THE OPINION OF THE BOARD, REJECTION IS NECESSARY FOR THE 7 PROTECTION OF THE INTERESTS OF THE AUTHORITY. IN EVERY CASE, A 8 RECORD SHALL BE MADE SETTING FORTH THE REASON FOR THE REJECTION, 9 WHICH RECORD SHALL THEREAFTER BE KEPT ON FILE. 10 (J) RULES AND REGULATIONS.--THE BOARD MAY BY RESOLUTION 11 ADOPT POLICIES TO EFFECTUATE THE PROVISIONS OF THIS SECTION. 12 (K) PROFESSIONAL SERVICES.--NOTHING IN THIS SECTION OR ANY 13 OTHER LAW OF THIS COMMONWEALTH SHALL REQUIRE THE AUTHORITY TO 14 COMPETITIVELY BID ARCHITECTURAL DESIGN, ENGINEERING, 15 CONSTRUCTION MANAGEMENT, ACCOUNTING, FINANCIAL, LEGAL OR OTHER 16 PROFESSIONAL SERVICES REQUIRED BY THE AUTHORITY. NEVERTHELESS, 17 ALL CONTRACTS NOT COMPETITIVELY BID SHALL BE SUBJECT TO THE 18 APPROVAL OF A QUALIFIED MAJORITY. 19 (L) CONCESSIONS.--ALL CONCESSIONS GRANTED BY THE AUTHORITY 20 FOR THE SALE OF PRODUCTS OR THE RENDITION OF SERVICES FOR A 21 CONSIDERATION ON AUTHORITY PROPERTY SHALL BE AWARDED ONLY UNDER 22 WRITTEN SPECIFICATIONS AFTER COMPETITIVE BIDDING AND TO THE 23 HIGHEST RESPONSIVE, RESPONSIBLE BIDDER IN A MANNER SIMILAR TO 24 THAT REQUIRED BY SUBSECTION (B) OR (C) AS APPROPRIATE. THIS 25 REQUIREMENT FOR COMPETITIVE BIDDING SHALL NOT APPLY TO ANY 26 CONCESSION WHICH HAS BEEN GRANTED BY A TRANSPORTATION SYSTEM 27 ACQUIRED BY THE AUTHORITY AND WHICH BY THE TERMS OF THE 28 AGREEMENT GRANTING IT WILL TERMINATE WITHIN ONE YEAR FROM DATE 29 OF THE ACQUISITION OF THE TRANSPORTATION SYSTEM BY THE 30 AUTHORITY, NOR TO ANY CONCESSION INVOLVING THE ESTIMATED RECEIPT 19930H0878B1975 - 57 -
1 BY THE AUTHORITY OF LESS THAN $10,000 OVER THE PERIOD FOR WHICH 2 THE CONCESSION IS GRANTED. 3 § 1751. FISCAL PROVISIONS. 4 (A) FISCAL YEAR AND BUDGET.--THE BOARD SHALL ESTABLISH A 5 FISCAL YEAR FOR OPERATIONS AND A FISCAL YEAR FOR CAPITAL 6 PROGRAMS. AT LEAST 90 DAYS PRIOR TO THE BEGINNING OF THE FIRST 7 FULL FISCAL YEAR AFTER THE CREATION OF THE AUTHORITY AND 8 ANNUALLY THEREAFTER, THE BOARD SHALL CAUSE TO BE PREPARED AND 9 SUBMITTED TO IT A TENTATIVE OPERATING BUDGET AND A TENTATIVE 10 CAPITAL BUDGET FOR THE ENSUING FISCAL YEAR. THE TENTATIVE 11 BUDGETS SHALL BE CONSIDERED BY THE BOARD AND, SUBJECT TO ANY 12 REVISION AND AMENDMENTS AS MAY BE DETERMINED, SHALL BE ADOPTED 13 PRIOR TO THE FIRST DAY OF THE ENSUING FISCAL YEAR AS THE BUDGETS 14 FOR THAT YEAR. THE BOARD SHALL ESTABLISH SUCH RULES AS ARE 15 NECESSARY FOR PROPER OBSERVANCE OF THE BUDGETS. SIMULTANEOUSLY 16 WITH THE ADOPTION OF THE CAPITAL BUDGET, THE BOARD SHALL ADOPT A 17 TENTATIVE CAPITAL PROGRAM COVERING THE ENSUING SIX YEARS. 18 (B) PROCEDURE.--A PUBLIC HEARING SHALL BE CONDUCTED PRIOR TO 19 THE ADOPTION OF THE FINAL OPERATING BUDGET AND TENTATIVE CAPITAL 20 PROGRAM. NOTICE OF THE PUBLIC HEARING SHALL BE PUBLISHED IN TWO 21 NEWSPAPERS OF GENERAL CIRCULATION AND A PUBLICATION SPECIFICALLY 22 DESIGNED TO REACH MINORITIES NOT FEWER THAN 30 DAYS PRIOR TO THE 23 HEARING. 24 § 1752. FINANCIAL STATEMENTS AND AUDIT. 25 (A) STATEMENT.--AS SOON AFTER THE END OF EACH FISCAL YEAR AS 26 IS FEASIBLE, THE BOARD SHALL CAUSE TO BE PREPARED AND PRINTED A 27 REPORT AND FINANCIAL STATEMENT OF THE AUTHORITY'S OPERATIONS FOR 28 THE PREVIOUS YEAR AND OF ITS ASSETS AND LIABILITIES PREPARED IN 29 ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. A 30 REASONABLY SUFFICIENT NUMBER OF COPIES OF THE REPORT SHALL BE 19930H0878B1975 - 58 -
1 PRINTED FOR DISTRIBUTION TO PERSONS INTERESTED, UPON REQUEST. A 2 COPY OF THE REPORT SHALL BE FILED WITH THE SECRETARY OF THE 3 COMMONWEALTH, THE COUNTY CLERK OF EACH COUNTY IN THE 4 METROPOLITAN AREA AND THE CLERK OF EACH MUNICIPALITY WHICH HAS 5 GRANTED RIGHTS TO THE AUTHORITY BY ORDINANCE, AND A COPY OF THE 6 REPORT SHALL BE ADDRESSED TO AND MAILED TO THE MAYOR AND CITY 7 COUNCIL OR THE GOVERNING BODY OF THE MUNICIPALITY. THE BOARD 8 FROM TIME TO TIME SHALL MAIL, TO THE PERSONS AND OFFICES 9 SPECIFIED, COPIES OF THE INTERIM FINANCIAL REPORTS AS MAY BE 10 PREPARED BY THE AUTHORITY, COPIES OF ALL BYLAWS, RULES AND 11 REGULATIONS, AND AMENDMENTS THERETO, AND COPIES OF THE ANNUAL 12 FINANCIAL BUDGETS. 13 (B) AUDIT.--THE BOARD SHALL APPOINT IN DUE TIME EACH YEAR A 14 FIRM OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS AS AUDITORS WHO 15 SHALL EXAMINE THE BOOKS, RECORDS AND ACCOUNTS, OPERATIONS AND 16 ASSETS AND LIABILITIES OF THE AUTHORITY FOR THE PURPOSE OF 17 AUDITING AND REPORTING UPON ITS FINANCIAL STATEMENTS FOR SUCH 18 YEAR. THE AUDITORS SHALL AUDIT THE BOOKS, RECORDS, ACCOUNTS, 19 OPERATIONS AND ASSETS AND LIABILITIES OF THE AUTHORITY IN 20 ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS. THE 21 REPORT OF THE AUDITORS SHALL BE APPENDED TO THE FINANCIAL 22 STATEMENT. 23 § 1753. AID FROM FEDERAL GOVERNMENT. 24 IN ADDITION TO THE POWERS CONFERRED UPON ANY AUTHORITY BY 25 OTHER PROVISIONS OF THIS CHAPTER, THE AUTHORITY IS EMPOWERED TO 26 BORROW OR ACCEPT MONEY OR ACCEPT GRANTS OR OTHER FINANCIAL 27 ASSISTANCE FROM ANY FEDERAL AGENCY FOR OR IN AID OF THE 28 AUTHORITY'S OPERATIONS. IT IS THE PURPOSE AND INTENT OF THIS 29 CHAPTER TO AUTHORIZE THE AUTHORITY, AND THE AUTHORITY IS SO 30 AUTHORIZED, TO DO ANY AND ALL THINGS NECESSARY OR DESIRABLE TO 19930H0878B1975 - 59 -
1 SECURE THE FINANCIAL AID OR COOPERATION OF ANY FEDERAL AGENCY IN 2 ANY OF THE AUTHORITY'S OPERATIONS. THESE THINGS MAY INCLUDE, 3 WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE POWER TO 4 CHANGE OR REVISE RATES, FARES AND CHARGES, TO MAKE RELOCATION 5 PAYMENTS TO FAMILIES, BUSINESSES AND NONPROFIT ORGANIZATIONS, TO 6 PROVIDE AN AREAWIDE TRANSPORTATION PLAN OR PROGRAM FOR THE 7 DEVELOPMENT OF A COMPREHENSIVE AND COORDINATED MASS 8 TRANSPORTATION SYSTEM FOR THE METROPOLITAN AREA, TO CARRY OUT 9 RESEARCH, DEVELOPMENT AND DEMONSTRATION PROJECTS AND TO PROVIDE 10 A SHARE OF THE COST OF ANY PROJECT AND ALL AS MAY BE REQUIRED BY 11 ANY FEDERAL LAW OR BY THE REQUIREMENTS OF ANY FEDERAL AGENCY 12 AUTHORIZED TO ADMINISTER ANY FEDERAL PROGRAM OF AID TO ANY MASS 13 TRANSPORTATION PROGRAM. 14 SUBCHAPTER D 15 FUNDS AND BONDS OF AUTHORITIES 16 SEC. 17 1761. MANAGEMENT OF FUNDS. 18 1762. SPECIAL FUNDS. 19 1763. BONDS. 20 1764. CONTRACTS WITH OBLIGEES OF AN AUTHORITY. 21 1765. COMMONWEALTH PLEDGES. 22 1766. PROVISIONS OF BONDS AND TRUST INDENTURES. 23 1767. BONDS TO BE LEGAL INVESTMENTS. 24 1768. RIGHTS AND REMEDIES. 25 1769. ADDITIONAL REMEDIES CONFERRABLE BY AN AUTHORITY. 26 1770. VALIDITY OF PLEDGE. 27 1771. SECURITY INTEREST IN FUNDS AND ACCOUNTS. 28 1772. PAYMENT OF PROCEEDS OF TAX LEVIED FOR AUTHORITY 29 PURPOSES. 30 1773. LIMITATION ON AUTHORITY UNDER FEDERAL BANKRUPTCY CODE. 19930H0878B1975 - 60 -
1 § 1761. MANAGEMENT OF FUNDS. 2 (A) GENERAL RULE.--ALL FUNDS OF AN AUTHORITY RECEIVED FROM 3 ANY SOURCE SHALL BE DELIVERED TO THE TREASURER OF THE AUTHORITY 4 OR TO SUCH OTHER AGENT OF THE AUTHORITY AS THE BOARD MAY 5 DESIGNATE. THE FUNDS SHALL BE PROMPTLY DEPOSITED IN THE NAME OF 6 THE AUTHORITY IN A BANK OR BANKS, BANK AND TRUST COMPANY OR BANK 7 AND TRUST COMPANIES, TRUST COMPANY OR TRUST COMPANIES IN THIS 8 COMMONWEALTH CHOSEN BY THE AUTHORITY. THE MONEYS IN THE ACCOUNT 9 OR ACCOUNTS MAY BE WITHDRAWN OR PAID OUT ONLY BY CHECK OR DRAFT 10 UPON THE BANK, BANK AND TRUST COMPANY OR TRUST COMPANY, SIGNED 11 BY THE TREASURER OR OTHER DESIGNATED AGENT OF THE AUTHORITY ON 12 WARRANT OF THE TREASURER OF THE AUTHORITY AND COUNTERSIGNED BY 13 THE CHAIRMAN OF THE BOARD OR BY SUCH PERSONS AS THE BOARD MAY 14 AUTHORIZE. MONEYS IN THE ACCOUNT OR ACCOUNTS MAY BE WITHDRAWN OR 15 PAID OUT BY ELECTRONIC FUNDS TRANSFER ON INSTRUCTIONS SIGNED AND 16 COUNTERSIGNED IN THE MANNER PROVIDED FOR CHECKS OR DRAFTS. THE 17 BOARD MAY DESIGNATE ANY OF ITS MEMBERS OR ANY OFFICER OR 18 EMPLOYEE OF THE AUTHORITY TO AFFIX THE SIGNATURE OF THE CHAIRMAN 19 TO ANY CHECK OR DRAFT FOR PAYMENT OF SALARIES OR WAGES AND FOR 20 THE PAYMENT OF ANY OTHER OBLIGATION OF NOT MORE THAN $100,000. 21 THE GENERAL MANAGER MAY DESIGNATE ANY OFFICER OR EMPLOYEE OF THE 22 AUTHORITY TO AFFIX THE SIGNATURE OF THE TREASURER TO ANY CHECK 23 OR DRAFT FOR PAYMENT OF SALARIES OR WAGES AND FOR THE PAYMENT OF 24 ANY OTHER OBLIGATION OF NOT MORE THAN $100,000. 25 (B) MANAGEMENT OF FUNDS.-- 26 (1) ALL BANK, BANK AND TRUST COMPANY OR TRUST COMPANY 27 BALANCES OF THE AUTHORITY, TO THE EXTENT THE SAME ARE NOT 28 INSURED, SHALL BE CONTINUOUSLY SECURED BY A PLEDGE OF DIRECT 29 OBLIGATIONS OF THE UNITED STATES, OF THE COMMONWEALTH OR OF 30 ANY MUNICIPALITY OR MUNICIPALITIES IN THE METROPOLITAN AREA 19930H0878B1975 - 61 -
1 HAVING AN AGGREGATE MARKET VALUE EXCLUSIVE OF ACCRUED 2 INTEREST AT ALL TIMES AT LEAST EQUAL TO THE BALANCE ON 3 DEPOSIT IN SUCH BANK, BANK AND TRUST COMPANY OR TRUST 4 COMPANY. THE SECURITIES SHALL EITHER BE DEPOSITED WITH THE 5 TREASURER OF THE AUTHORITY OR BE HELD BY A TRUSTEE OR AGENT 6 SATISFACTORY TO THE AUTHORITY. ALL DEPOSITORY INSTITUTIONS 7 ARE AUTHORIZED TO GIVE SECURITY FOR THE DEPOSITS. 8 (2) SUBJECT TO THE PROVISIONS OF ANY AGREEMENTS WITH 9 OBLIGEES OF THE AUTHORITY, ALL FUNDS OF THE AUTHORITY, 10 INCLUDING, BUT NOT LIMITED TO, THE PROCEEDS OF BONDS THAT ARE 11 NOT REQUIRED FOR IMMEDIATE USE MAY BE INVESTED BY THE BOARD 12 CONSISTENT WITH SOUND BUSINESS PRACTICE. THE BOARD SHALL 13 PROVIDE FOR AN INVESTMENT PROGRAM SUBJECT TO RESTRICTIONS 14 CONTAINED IN THIS ACT AND IN ANY OTHER APPLICABLE STATUTE AND 15 ANY RESOLUTIONS ON THIS SUBJECT ADOPTED BY THE BOARD. 16 (C) AUTHORIZED INVESTMENTS.--THE AUTHORIZED TYPES OF 17 INVESTMENTS FOR AUTHORITY FUNDS SHALL BE ANY OF THE FOLLOWING: 18 (1) GOVERNMENT OBLIGATIONS. 19 (2) DEBT OBLIGATIONS ISSUED BY ANY OF THE FOLLOWING 20 FEDERAL AGENCIES OR SUCH OTHER LIKE FEDERAL AGENCIES WHICH 21 MAY BE DESIGNATED BY THE BOARD: BANK FOR COOPERATIVES, 22 FEDERAL FARM CREDIT BANKS, FEDERAL FINANCING BANK, FEDERAL 23 HOME LOAN BANK SYSTEM, FEDERAL NATIONAL MORTGAGE ASSOCIATION, 24 EXPORT-IMPORT BANK OF THE UNITED STATES, FARMERS HOME 25 ADMINISTRATION, RESOLUTION FUNDING CORPORATION, SMALL 26 BUSINESS ADMINISTRATION, STUDENT LOAN MARKETING ASSOCIATION, 27 INTER-AMERICAN DEVELOPMENT BANK, INTERNATIONAL BANK FOR 28 RECONSTRUCTION AND DEVELOPMENT, FEDERAL LAND BANKS OR 29 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION, AND THEIR 30 PREDECESSOR OR SUCCESSOR AGENCIES. 19930H0878B1975 - 62 -
1 (3) SHORT-TERM OR LONG-TERM DEBT OBLIGATIONS OF ANY 2 STATE OR POLITICAL SUBDIVISION THEREOF OR ANY AGENCY OR 3 INSTRUMENTALITY OF SUCH A STATE OR POLITICAL SUBDIVISION OR 4 OF ANY MUNICIPAL CORPORATION, PROVIDED THAT THE OBLIGATIONS 5 ARE RATED BY A RATING AGENCY IN ANY OF THE THREE HIGHEST 6 RATING CATEGORIES (WITHOUT REFERENCE TO SUBCATEGORIES) 7 ASSIGNED BY THE RATING AGENCY. 8 (4) RIGHTS TO RECEIVE THE PRINCIPAL OF OR THE INTEREST 9 ON OBLIGATIONS OF STATES, POLITICAL SUBDIVISIONS, AGENCIES OR 10 INSTRUMENTALITIES MEETING THE REQUIREMENTS SET FORTH IN 11 PARAGRAPHS (2) AND (3), WHETHER THROUGH DIRECT OWNERSHIP AS 12 EVIDENCED BY PHYSICAL POSSESSION OF THE OBLIGATIONS OR 13 UNMATURED INTEREST COUPONS OR BY REGISTRATION AS TO OWNERSHIP 14 ON THE BOOKS OF THE ISSUER OR ITS DULY AUTHORIZED PAYING 15 AGENT OR TRANSFER AGENT OR THROUGH THE PURCHASE OF 16 CERTIFICATES OR OTHER INSTRUMENTS EVIDENCING AN UNDIVIDED 17 OWNERSHIP INTEREST IN PAYMENTS OF THE PRINCIPAL OF OR 18 INTEREST ON THE OBLIGATIONS. 19 (5) NEGOTIABLE AND NONNEGOTIABLE CERTIFICATES OF 20 DEPOSIT, TIME DEPOSITS OR OTHER SIMILAR BANKING ARRANGEMENTS 21 WHICH ARE ISSUED BY BANKS, BANK AND TRUST COMPANIES, TRUST 22 COMPANIES OR SAVINGS AND LOAN ASSOCIATIONS, PROVIDED THAT, 23 UNLESS ISSUED BY A QUALIFIED FINANCIAL INSTITUTION, ANY SUCH 24 CERTIFICATE, DEPOSIT OR OTHER ARRANGEMENT SHALL BE 25 CONTINUOUSLY SECURED AS TO PRINCIPAL IN THE MANNER AND TO THE 26 EXTENT PROVIDED IN SUBSECTION (D). 27 (6) REPURCHASE AGREEMENTS FOR INVESTMENT SECURITIES 28 DESCRIBED IN PARAGRAPH (1) OR (2) WITH A QUALIFIED FINANCIAL 29 INSTITUTION OR WITH DEALERS IN GOVERNMENT BONDS WHICH REPORT 30 TO, TRADE WITH AND ARE RECOGNIZED AS PRIMARY DEALERS BY A 19930H0878B1975 - 63 -
1 FEDERAL RESERVE BANK AND ARE MEMBERS OF THE SECURITIES 2 INVESTORS PROTECTION CORPORATION, PROVIDED THAT THE 3 REPURCHASE PRICE PAYABLE UNDER ANY AGREEMENT SHALL BE 4 CONTINUOUSLY SECURED IN THE MANNER AND TO THE EXTENT PROVIDED 5 IN SUBSECTION (D). 6 (7) INVESTMENT AGREEMENTS WITH QUALIFIED FINANCIAL 7 INSTITUTIONS. 8 (8) COMMERCIAL PAPER RATED IN THE HIGHEST RATING 9 CATEGORY (WITHOUT REFERENCE TO SUBCATEGORIES) BY A RATING 10 AGENCY. 11 (9) SHARES OR CERTIFICATES IN ANY SHORT-TERM INVESTMENT 12 FUND RATED IN THE HIGHEST RATING CATEGORY (WITHOUT REFERENCE 13 TO SUBCATEGORIES) BY A RATING AGENCY, WHICH SHORT-TERM 14 INVESTMENT FUND INVESTS SOLELY IN OBLIGATIONS DESCRIBED IN 15 PARAGRAPHS (1) AND (2). 16 (10) DEBT OBLIGATIONS OF ANY FOREIGN GOVERNMENT OR 17 POLITICAL SUBDIVISION THEREOF OR ANY AGENCY OR 18 INSTRUMENTALITY OF FOREIGN GOVERNMENT OR POLITICAL 19 SUBDIVISION, PROVIDED THAT THE OBLIGATIONS ARE RATED BY A 20 RATING AGENCY (WITHOUT REFERENCE TO SUBCATEGORIES) IN THE 21 HIGHEST RATING CATEGORY ASSIGNED BY THE RATING AGENCY. 22 (11) SUCH OTHER INVESTMENTS WHICH AT THE TIME OF THE 23 ACQUISITION THEREOF SHALL BE LISTED AS PERMISSIBLE 24 INVESTMENTS FOR TRUST FUNDS IN AN INDENTURE OR RESOLUTION 25 WITH RESPECT TO INDEBTEDNESS WHICH IS INCURRED UNDER THIS 26 CHAPTER. 27 (D) SECURITY FOR INVESTMENT SECURITIES.--ANY SECURITY 28 REQUIRED TO BE MAINTAINED AS COLLATERAL FOR INVESTMENT 29 SECURITIES IN THE FORM OF CERTIFICATES OF DEPOSIT, TIME 30 DEPOSITS, OTHER SIMILAR BANKING ARRANGEMENTS AND REPURCHASE 19930H0878B1975 - 64 -
1 AGREEMENTS DESCRIBED IN SUBSECTION (C)(5) AND (6) SHALL BE 2 SUBJECT TO THE FOLLOWING REQUIREMENTS: 3 (1) THE COLLATERAL SHALL BE IN THE FORM OF OBLIGATIONS 4 DESCRIBED IN SUBSECTION (C)(1) AND (2), EXCEPT THAT THE 5 SECURITY FOR CERTIFICATES OF DEPOSIT, TIME DEPOSITS OR OTHER 6 SIMILAR BANKING ARRANGEMENTS MAY INCLUDE OTHER MARKETABLE 7 SECURITIES WHICH ARE ELIGIBLE AS SECURITY FOR TRUST FUNDS 8 UNDER APPLICABLE REGULATIONS OF THE COMPTROLLER OF THE 9 CURRENCY OF THE UNITED STATES OF AMERICA OR UNDER APPLICABLE 10 STATE LAWS AND REGULATIONS. 11 (2) THE COLLATERAL SHALL HAVE AN AGGREGATE MARKET VALUE, 12 CALCULATED NOT LESS FREQUENTLY THAN MONTHLY, AT LEAST EQUAL 13 TO THE PRINCIPAL AMOUNT (LESS ANY PORTION INSURED BY THE 14 FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY COMPARABLE 15 INSURANCE CORPORATION CHARTERED BY THE UNITED STATES OF 16 AMERICA) OR THE REPURCHASE PRICE SECURED THEREBY, AS THE CASE 17 MAY BE. THE INSTRUMENTS GOVERNING THE ISSUANCE OF AND 18 SECURITY FOR THE INVESTMENT SECURITIES SHALL DESIGNATE THE 19 PERSON RESPONSIBLE FOR MAKING THE FOREGOING CALCULATIONS. 20 (3) THE AUTHORITY SHALL HAVE A PERFECTED SECURITY 21 INTEREST IN THE COLLATERAL SECURING CERTIFICATES OF DEPOSIT, 22 TIME DEPOSITS OR OTHER SIMILAR BANKING ARRANGEMENTS, AND THE 23 COLLATERAL SHALL BE HELD FREE AND CLEAR OF THE CLAIMS OF 24 THIRD PARTIES. THE COLLATERAL SHALL BE DEPOSITED WITH THE 25 AUTHORITY, WITH A FEDERAL RESERVE BANK FOR THE ACCOUNT OF THE 26 AUTHORITY OR WITH A BANK, BANK AND TRUST COMPANY OR TRUST 27 COMPANY (OTHER THAN THE OBLIGOR) WHICH IS ACTING SOLELY AS 28 AGENT FOR THE AUTHORITY AND HAS A COMBINED NET CAPITAL AND 29 SURPLUS EQUAL TO AT LEAST $100,000,000. 30 (4) COLLATERAL FOR REPURCHASE AGREEMENTS SHALL BE HELD 19930H0878B1975 - 65 -
1 FREE AND CLEAR OF THE CLAIMS OF THIRD PARTIES BY THE 2 AUTHORITY, OR BY A FEDERAL RESERVE BANK FOR THE ACCOUNT OF 3 THE AUTHORITY, OR BY A BANK, BANK AND TRUST COMPANY OR TRUST 4 COMPANY WHICH IS ACTING SOLELY AS AGENT FOR THE AUTHORITY AND 5 HAS A COMBINED NET CAPITAL AND SURPLUS AT LEAST EQUAL TO 6 $100,000,000. A PERFECTED FIRST PRIORITY SECURITY INTEREST 7 FOR THE BENEFIT OF THE AUTHORITY SHALL BE CREATED IN THE 8 COLLATERAL UNDER TITLE 13 (RELATING TO COMMERCIAL CODE) OR 9 BOOK ENTRY PROCEDURES PRESCRIBED BY APPLICABLE FEDERAL 10 REGULATIONS. 11 § 1762. SPECIAL FUNDS. 12 AN AUTHORITY, UNDER RESOLUTIONS ADOPTED FROM TIME TO TIME BY 13 THE BOARD, MAY ESTABLISH AND CREATE SUCH SPECIAL FUNDS AS MAY BE 14 FOUND DESIRABLE BY THE BOARD AND, IN AND BY SUCH RESOLUTIONS, 15 MAY PROVIDE FOR PAYMENTS INTO ALL SPECIAL FUNDS FROM SPECIFIED 16 SOURCES WITH SUCH PREFERENCES AND PRIORITIES AS MAY BE DEEMED 17 ADVISABLE AND MAY PROVIDE FOR THE CUSTODY, DISBURSEMENT AND 18 APPLICATION OF ANY MONEYS IN ANY SUCH SPECIAL FUNDS CONSISTENT 19 WITH THE PROVISIONS OF THIS SUBCHAPTER AND CONSISTENT WITH 20 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. 21 § 1763. BONDS. 22 (A) GENERAL RULE.-- 23 (1) THE BONDS OF THE AUTHORITY SHALL BE AUTHORIZED BY 24 RESOLUTION OF THE BOARD THEREOF AND SHALL BE OF SUCH SERIES, 25 BEAR SUCH DATE OR DATES, BEAR OR ACCRUE INTEREST AT SUCH RATE 26 OR RATES, FIXED OR VARIABLE, AS SHALL BE DETERMINED BY THE 27 BOARD AS NECESSARY TO ISSUE AND SELL THE AUTHORIZED BONDS, BE 28 IN SUCH DENOMINATIONS, BE IN SUCH FORM, EITHER COUPON OR 29 FULLY REGISTERED WITHOUT COUPONS, BE IN CERTIFICATED OR BOOK- 30 ENTRY-ONLY FORM, CARRY SUCH REGISTRATION AND EXCHANGEABILITY 19930H0878B1975 - 66 -
1 AND INTERCHANGEABILITY PRIVILEGES, BE PAYABLE IN SUCH MEDIUM 2 OF PAYMENT AND AT SUCH PLACE OR PLACES, BE SUBJECT TO SUCH 3 TERMS OF REDEMPTION AND BE ENTITLED TO SUCH PRIORITIES OF 4 PAYMENT IN THE REVENUES OR RECEIPTS OF THE AUTHORITY AS THE 5 RESOLUTION OR TRUST INDENTURE ADOPTED OR APPROVED BY THE 6 AUTHORITY MAY PROVIDE. 7 (2) THE BONDS SHALL BE SIGNED BY OR SHALL BEAR THE 8 FACSIMILE SIGNATURES OF SUCH OFFICERS AS THE BOARD SHALL 9 DETERMINE, AND COUPON BONDS SHALL HAVE ATTACHED THERETO 10 INTEREST COUPONS BEARING THE FACSIMILE SIGNATURE OF THE 11 TREASURER OF THE AUTHORITY, AND ALL BONDS SHALL BE 12 AUTHENTICATED BY AN AUTHENTICATING AGENT, FISCAL AGENT OR 13 TRUSTEE, ALL AS MAY BE PRESCRIBED IN THE RESOLUTION OR TRUST 14 INDENTURE. 15 (3) ANY SUCH BONDS MAY BE ISSUED AND DELIVERED 16 NOTWITHSTANDING THAT ONE OR MORE OF THE OFFICERS SIGNING 17 BONDS OR THE TREASURER WHOSE FACSIMILE SIGNATURE SHALL BE 18 UPON THE COUPON, OR ANY THEREOF, SHALL HAVE CEASED TO BE AN 19 OFFICER OR OFFICERS AT THE TIME WHEN THE BONDS SHALL ACTUALLY 20 BE DELIVERED. 21 (4) THE PROCEEDS OF AN ISSUE OF BONDS MAY BE USED TO PAY 22 THE COSTS OF A PROJECT; SUBJECT TO THE LIMITATIONS OF 23 SUBSECTION (B), TO FINANCE ANY CASH FLOW DEFICIT OF THE 24 AUTHORITY; TO REIMBURSE ANY COSTS OF A PROJECT INITIALLY PAID 25 BY THE AUTHORITY OR ANY PERSON; TO FUND ANY REQUIRED 26 RESERVES; TO CAPITALIZE INTEREST; OR TO PAY COSTS OF ISSUANCE 27 INCLUDING, BUT NOT LIMITED TO, COSTS OF OBTAINING CREDIT 28 ENHANCEMENT FOR THE BONDS. 29 (B) MATURITY.--BONDS ISSUED TO FINANCE THE COSTS OF A 30 PROJECT SHALL MATURE AT SUCH TIME OR TIMES NOT EXCEEDING 40 19930H0878B1975 - 67 -
1 YEARS FROM THEIR RESPECTIVE DATES OF ORIGINAL ISSUE AS THE 2 AUTHORITY SHALL BY RESOLUTION DETERMINE. BONDS ISSUED IN 3 ANTICIPATION OF INCOME OF THE AUTHORITY SHALL MATURE WITHIN ONE 4 FISCAL YEAR AFTER THE FISCAL YEAR OF THE DATE OF ISSUANCE 5 THEREOF, EXCEPT FOR BONDS ISSUED IN ANTICIPATION OF GRANTS WITH 6 RESPECT TO THE COST OF A PROJECT, WHICH BONDS SHALL MATURE NO 7 LATER THAN SIX MONTHS BEYOND THE TIME OF ANTICIPATED RECEIPT OF 8 THE FINAL PAYMENT OF THE GRANT. 9 (C) SALE.--BONDS MAY BE SOLD AT PUBLIC SALE OR INVITED SALE 10 FOR SUCH PRICE OR PRICES AND AT SUCH RATE OR RATES OF INTEREST 11 AS THE AUTHORITY SHALL DETERMINE. BONDS MAY BE SOLD AT PRIVATE 12 SALE BY NEGOTIATION AT SUCH PRICE OR PRICES AND AT SUCH RATE OR 13 RATES OF INTEREST AS THE AUTHORITY SHALL DETERMINE, BUT ONLY IF 14 THE AUTHORITY MAKES A WRITTEN PUBLIC EXPLANATION OF THE 15 CIRCUMSTANCES AND JUSTIFICATION FOR THE PRIVATE SALE BY 16 NEGOTIATION. PENDING THE PREPARATION OF THE DEFINITIVE BONDS, 17 INTERIM RECEIPTS MAY BE ISSUED TO THE PURCHASER OR PURCHASERS OF 18 SUCH BONDS AND MAY CONTAIN SUCH TERMS AND CONDITIONS AS THE 19 AUTHORITY MAY DETERMINE. 20 (D) NEGOTIABLE INSTRUMENTS.--BONDS OF AN AUTHORITY SHALL 21 HAVE THE QUALITIES OF NEGOTIABLE INSTRUMENTS UNDER TITLE 13 22 (RELATING TO COMMERCIAL CODE). 23 (E) REFUNDING.-- 24 (1) SUBJECT TO THE PROVISIONS OF THE OUTSTANDING BONDS, 25 NOTES OR OTHER OBLIGATIONS ISSUED UNDER THIS CHAPTER OR PRIOR 26 ACTS AND SUBJECT TO THE PROVISIONS OF THIS CHAPTER, THE 27 AUTHORITY SHALL HAVE THE RIGHT AND POWER TO REFUND ANY 28 OUTSTANDING DEBT, WHETHER THE DEBT REPRESENTS PRINCIPAL OR 29 INTEREST, IN WHOLE OR IN PART, AT ANY TIME. 30 (2) AS USED IN THIS SUBSECTION, "REFUND" AND ITS 19930H0878B1975 - 68 -
1 VARIATIONS SHALL MEAN THE ISSUANCE AND SALE OF OBLIGATIONS 2 THE PROCEEDS OF WHICH ARE USED OR ARE TO BE USED FOR THE 3 PAYMENT OR REDEMPTION OF OUTSTANDING OBLIGATIONS UPON OR 4 PRIOR TO MATURITY. REFUNDING BONDS SHALL MATURE AT SUCH TIME 5 OR TIMES NOT EXCEEDING 40 YEARS FROM THEIR DATES OF ORIGINAL 6 ISSUANCE AS THE AUTHORITY SHALL DETERMINE BY RESOLUTION. 7 (F) CREDIT OF COMMONWEALTH AND POLITICAL SUBDIVISIONS NOT 8 PLEDGED.--UNDER NO CIRCUMSTANCES SHALL ANY BONDS ISSUED BY THE 9 AUTHORITY OR ANY OTHER OBLIGATION OF THE AUTHORITY BE OR BECOME 10 AN INDEBTEDNESS OR LIABILITY OF THE COMMONWEALTH OR OF ANY 11 GOVERNMENT AGENCY, PROVIDED THAT ANY GOVERNMENT AGENCY MAY 12 GUARANTEE BONDS OF AN AUTHORITY TO THE EXTENT AND FOR THE 13 PURPOSES FOR WHICH THE GOVERNMENT AGENCY MAY MAKE LOANS OR 14 GRANTS TO AN AUTHORITY. 15 (G) NONLIABILITY.--NEITHER THE BOARD MEMBERS, ANY EMPLOYEES 16 OF THE AUTHORITY NOR ANY PERSON EXECUTING THE BONDS SHALL BE 17 LIABLE PERSONALLY ON ANY BONDS BY REASON OF THE ISSUANCE 18 THEREOF. BONDS OF AN AUTHORITY SHALL CONTAIN A STATEMENT OF THE 19 LIMITATION SET FORTH IN THIS SUBSECTION. 20 (H) BONDS DEEMED VALID.--ANY BOND RECITING IN SUBSTANCE THAT 21 IT HAS BEEN ISSUED BY THE AUTHORITY TO ACCOMPLISH THE PUBLIC 22 PURPOSES OF THIS SUBCHAPTER SHALL BE CONCLUSIVELY DEEMED IN ANY 23 SUIT, ACTION OR PROCEEDING INVOLVING THE VALIDITY OR 24 ENFORCEABILITY OF THE BONDS OR SECURITY THEREFOR TO HAVE BEEN 25 ISSUED FOR SUCH PURPOSE. 26 (I) NOTICE AND CHALLENGES.-- 27 (1) THE AUTHORITY MAY CAUSE A COPY OF ANY RESOLUTION 28 AUTHORIZING THE ISSUANCE OF BONDS ADOPTED BY IT TO BE FILED 29 FOR PUBLIC INSPECTION IN ITS OFFICE AND IN THE OFFICE OF THE 30 CLERK OF THE GOVERNING BODY OF EACH COUNTY AND THE GOVERNING 19930H0878B1975 - 69 -
1 BODY OF THE CITY OF THE FIRST CLASS WITHIN ITS SERVICE AREA 2 AND MAY THEREUPON CAUSE TO BE PUBLISHED IN A NEWSPAPER 3 PUBLISHED OR CIRCULATING IN ITS SERVICE AREA A NOTICE STATING 4 THE FACT AND DATE OF THE ADOPTION, THE PLACES WHERE THE 5 RESOLUTION HAS BEEN SO FILED FOR PUBLIC INSPECTION, THE DATE 6 OF PUBLICATION OF THE NOTICE AND THAT ANY ACTION OR 7 PROCEEDING OF ANY KIND OR NATURE IN ANY COURT QUESTIONING THE 8 VALIDITY OR PROPER AUTHORIZATION OF BONDS PROVIDED FOR BY THE 9 RESOLUTION, OR THE VALIDITY OF ANY COVENANTS, AGREEMENTS OR 10 CONTRACT PROVIDED FOR BY SUCH RESOLUTION, SHALL BE COMMENCED 11 WITHIN 20 DAYS AFTER THE PUBLICATION OF THE NOTICE. 12 (2) IF ANY NOTICE SHALL AT ANY TIME BE PUBLISHED AND IF 13 NO ACTION OR PROCEEDING QUESTIONING THE VALIDITY OR PROPER 14 AUTHORIZATION OF BONDS PROVIDED FOR BY THE RESOLUTION, OR THE 15 VALIDITY OF ANY COVENANTS, AGREEMENTS OR CONTRACT PROVIDED 16 FOR BY SUCH RESOLUTION, SHALL BE COMMENCED WITHIN 20 DAYS 17 AFTER THE PUBLICATION OF THE NOTICE, THEN ALL RESIDENTS, 18 TAXPAYERS AND OWNERS OF PROPERTY IN THE SERVICE AREA AND 19 USERS OF THE TRANSPORTATION SYSTEM OF THE AUTHORITY AND ALL 20 OTHER PERSONS WHATSOEVER SHALL BE FOREVER BARRED AND 21 FORECLOSED FROM INSTITUTING OR COMMENCING ANY ACTION OR 22 PROCEEDING IN ANY COURT, OR PLEADING ANY DEFENSE TO ANY 23 ACTION OR PROCEEDINGS, QUESTIONING THE VALIDITY OR PROPER 24 AUTHORIZATION OF SUCH BONDS, OR THE VALIDITY OF ANY SUCH 25 COVENANTS, AGREEMENTS OR CONTRACTS AND SAID BONDS, COVENANTS, 26 AGREEMENTS AND CONTRACTS, SHALL BE CONCLUSIVELY DEEMED TO BE 27 VALID AND BINDING OBLIGATIONS IN ACCORDANCE WITH THEIR TERMS 28 AND TENOR. 29 (3) AFTER ISSUANCE OF BONDS, ALL BONDS SHALL BE 30 CONCLUSIVELY PRESUMED TO BE FULLY AUTHORIZED AND ISSUED BY 19930H0878B1975 - 70 -
1 ALL THE LAWS OF THIS COMMONWEALTH, AND ANY PERSON SHALL BE 2 ESTOPPED FROM QUESTIONING THEIR SALE, EXECUTION OR DELIVERY 3 BY THE AUTHORITY. 4 § 1764. CONTRACTS WITH OBLIGEES OF AN AUTHORITY. 5 EXCEPT AS OTHERWISE PROVIDED IN ANY RESOLUTION OF AN 6 AUTHORITY AUTHORIZING OR AWARDING BONDS, THE TERMS THEREOF AND 7 OF THIS CHAPTER AS IN EFFECT WHEN THE BONDS WERE AUTHORIZED 8 SHALL CONSTITUTE A CONTRACT BETWEEN THE AUTHORITY AND OBLIGEES 9 OF THE AUTHORITY, SUBJECT TO MODIFICATION IN SUCH MANNER AS THE 10 RESOLUTION, THE TRUST INDENTURE SECURING SUCH BONDS OR THE BONDS 11 SHALL PROVIDE. 12 § 1765. COMMONWEALTH PLEDGES. 13 (A) LIMITATION OF POWERS.-- 14 (1) THE COMMONWEALTH DOES HEREBY PLEDGE TO AND AGREE 15 WITH ANY PERSON, FIRM OR CORPORATION, GOVERNMENT AGENCY, 16 WHETHER IN THIS COMMONWEALTH OR ELSEWHERE, OR FEDERAL AGENCY 17 SUBSCRIBING TO OR ACQUIRING THE BONDS TO BE ISSUED BY THE 18 AUTHORITY THAT THE COMMONWEALTH WILL NOT LIMIT OR ALTER THE 19 RIGHTS HEREBY VESTED IN THE AUTHORITY IN ANY MANNER 20 INCONSISTENT WITH THE OBLIGATIONS OF THE AUTHORITY TO THE 21 OBLIGEES OF THE AUTHORITY UNTIL ALL BONDS AT ANY TIME ISSUED, 22 TOGETHER WITH THE INTEREST THEREON, ARE FULLY PAID OR 23 PROVIDED FOR. THE COMMONWEALTH DOES FURTHER PLEDGE TO AND 24 AGREE WITH ANY FEDERAL AGENCY THAT, IN THE EVENT THAT ANY 25 FEDERAL AGENCY SHALL CONTRIBUTE ANY FUNDS FOR THE AUTHORITY 26 OR ANY PROJECT, THE COMMONWEALTH WILL NOT ALTER OR LIMIT THE 27 RIGHTS AND POWERS OF THE AUTHORITY IN ANY MANNER WHICH WOULD 28 BE INCONSISTENT WITH THE DUE PERFORMANCE OF ANY AGREEMENTS 29 BETWEEN THE AUTHORITY AND ANY FEDERAL AGENCY. 30 (2) THE COMMONWEALTH DOES HEREBY PLEDGE TO AND AGREE 19930H0878B1975 - 71 -
1 WITH ANY PERSON WHO, AS OWNER THEREOF, LEASES OR SUBLEASES 2 PROPERTY TO OR FROM AN AUTHORITY THAT THE COMMONWEALTH WILL 3 NOT LIMIT OR ALTER THE RIGHTS AND POWERS HEREBY VESTED IN THE 4 AUTHORITY OR OTHERWISE CREATED BY THIS ACT IN ANY MANNER 5 WHICH IMPAIRS THE OBLIGATIONS OF THE AUTHORITY UNTIL ALL 6 OBLIGATIONS OF THE AUTHORITY UNDER THE LEASE OR SUBLEASE ARE 7 FULLY MET AND DISCHARGED. 8 (B) TAX PROCEEDS.--IF AND TO THE EXTENT THAT THE AUTHORITY 9 PLEDGES ITS SHARE OF THE PROCEEDS OF A TAX AUTHORIZED BY LAW TO 10 BE LEVIED FOR AUTHORITY PURPOSES OR MADE AVAILABLE FOR USE BY 11 THE AUTHORITY AS SECURITY FOR THE PAYMENT OF BONDS ISSUED BY THE 12 AUTHORITY, THE COMMONWEALTH DOES HEREBY PLEDGE TO AND AGREE WITH 13 ANY PERSON, FIRM OR CORPORATION, GOVERNMENT AGENCY, WHETHER IN 14 THIS COMMONWEALTH OR ELSEWHERE, OR FEDERAL AGENCY SUBSCRIBING TO 15 OR ACQUIRING SUCH BONDS TO BE ISSUED BY THE AUTHORITY THAT THE 16 COMMONWEALTH ITSELF WILL NOT, NOR WILL IT AUTHORIZE ANY 17 GOVERNMENT ENTITY LEVYING SUCH TAX TO, ABOLISH OR TO REDUCE THE 18 RATE OF TAX IMPOSED FOR AUTHORITY PURPOSES OR MADE AVAILABLE FOR 19 USE BY THE AUTHORITY UNTIL ALL BONDS SO SECURED BY THE PLEDGE OF 20 THE AUTHORITY, TOGETHER WITH THE INTEREST THEREON, ARE FULLY 21 PAID OR PROVIDED FOR. 22 § 1766. PROVISIONS OF BONDS AND TRUST INDENTURES. 23 IN CONNECTION WITH THE ISSUANCE OF BONDS OR THE INCURRING OF 24 OBLIGATIONS UNDER LEASES, AND IN ORDER TO SECURE THE PAYMENT OF 25 THE BONDS AND OBLIGATIONS, THE AUTHORITY, IN ADDITION TO ITS 26 OTHER POWERS, SHALL HAVE THE POWER TO: 27 (1) PLEDGE OR GRANT A SECURITY INTEREST, SENIOR, PARITY 28 OR SUBORDINATED, IN ALL OR ANY PART OF ITS REVENUES, 29 INCLUDING, BUT NOT LIMITED TO, THE PROCEEDS OF ANY TAX LEVIED 30 FOR THE PURPOSES OF OR MADE AVAILABLE FOR USE BY THE 19930H0878B1975 - 72 -
1 AUTHORITY, TO WHICH ITS RIGHT THEN EXISTS OR MAY THEREAFTER 2 COME INTO EXISTENCE. 3 (2) GRANT A LIEN ON OR A SECURITY INTEREST IN, SENIOR, 4 PARITY OR SUBORDINATED, IN ALL OR ANY PART OF ITS REAL OR 5 PERSONAL PROPERTY THEN OWNED OR THEREAFTER ACQUIRED, 6 PROVIDED, HOWEVER, THAT NO SUCH LIEN SHALL EXTEND TO REAL 7 PROPERTY OF AN AUTHORITY COMPRISING RIGHTS-OF-WAY, EASEMENTS 8 OR ANY OTHER INTERESTS IN REAL PROPERTY USED OR USEFUL FOR 9 PASSAGE OF TRANSPORTATION VEHICLES OR NECESSARY FOR THE SAFE 10 AND SOUND ROUTING OR CONTROL OF TRANSPORTATION VEHICLES. 11 (3) PROVIDE FOR THE ISSUANCE OF UNSECURED BONDS, LIMITED 12 RECOURSE BONDS OR NONRECOURSE BONDS. 13 (4) ENTER INTO TRUST INDENTURES SECURING BONDS, 14 INCLUDING, BUT NOT LIMITED TO, MASTER TRUST INDENTURES. 15 (5) COVENANT AGAINST PLEDGING OR GRANTING A LIEN ON OR 16 SECURITY INTEREST IN ALL OR ANY PART OF ITS REVENUES OR ALL 17 OR ANY PART OF ITS REAL OR PERSONAL PROPERTY TO WHICH ITS 18 RIGHT OR TITLE EXISTS OR MAY THEREAFTER COME INTO EXISTENCE, 19 OR AGAINST PERMITTING OR SUFFERING ANY LIEN ON THE REVENUES 20 OR PROPERTY, COVENANT WITH RESPECT TO LIMITATIONS ON ITS 21 RIGHT TO SELL, LEASE OR OTHERWISE DISPOSE OF ANY OF ITS REAL 22 PROPERTY AND COVENANT AS TO WHICH OTHER OR ADDITIONAL DEBTS 23 OR OBLIGATIONS MAY BE INCURRED BY IT. 24 (6) COVENANT AS TO THE BONDS TO BE ISSUED AND AS TO THE 25 ISSUANCE OF SUCH BONDS, IN ESCROW OR OTHERWISE, AND AS TO THE 26 USE AND DISPOSITION OF THE PROCEEDS THEREOF, PROVIDE FOR THE 27 REPLACEMENT OF LOST, DESTROYED OR MUTILATED BONDS, COVENANT 28 AGAINST EXTENDING THE TIME FOR THE PAYMENT OF ITS BONDS OR 29 INTEREST THEREON AND COVENANT FOR THE REDEMPTION OF BONDS AND 30 PROVIDE THE TERMS AND CONDITIONS THEREOF. 19930H0878B1975 - 73 -
1 (7) COVENANT AS TO THE AMOUNT OF REVENUES TO BE RAISED 2 IN EACH FISCAL YEAR OR OTHER PERIOD OF TIME BY THE AUTHORITY, 3 AS WELL AS TO THE USE AND DISPOSITION TO BE MADE THEREOF, 4 CREATE OR AUTHORIZE THE CREATION OF SPECIAL FUNDS FOR DEBT 5 SERVICE OR OTHER PURPOSES AND COVENANT AS TO THE USE AND 6 DISPOSITION OF THE MONEYS HELD IN SUCH FUNDS. 7 (8) PRESCRIBE THE PROCEDURE, IF ANY, BY WHICH THE TERMS 8 OF ANY CONTRACT WITH OBLIGEES OF THE AUTHORITY MAY BE 9 SUPPLEMENTED, AMENDED OR ABROGATED, PRESCRIBE WHICH 10 SUPPLEMENTS OR AMENDMENTS WILL REQUIRE THE CONSENT OF 11 OBLIGEES OF THE AUTHORITY AND THE AMOUNT OF BONDS TO BE HELD 12 BY OBLIGEES TO EFFECT SUCH CONSENT AND PRESCRIBE THE MANNER 13 IN WHICH SUCH CONSENT MAY BE GIVEN. 14 (9) COVENANT AS TO THE USE OF ANY OR ALL OF ITS REAL OR 15 PERSONAL PROPERTY, WARRANT ITS TITLE AND COVENANT AS TO THE 16 MAINTENANCE OF ITS REAL AND PERSONAL PROPERTY, THE 17 REPLACEMENT THEREOF, THE INSURANCE TO BE CARRIED THEREON AND 18 THE USE AND DISPOSITION OF INSURANCE PROCEEDS. 19 (10) COVENANT AS TO THE RIGHTS, LIABILITIES, POWERS AND 20 DUTIES ARISING UPON THE BREACH BY IT OF ANY COVENANT, 21 CONDITION OR OBLIGATION, PROVIDED THAT THE AUTHORITY SHALL 22 NOT BE PERMITTED TO COVENANT THAT UPON SUCH BREACH ANY OR ALL 23 OF ITS BONDS OR OBLIGATIONS THE PAYMENT OF WHICH IS SECURED 24 SOLELY BY A PLEDGE OF OR SECURITY INTEREST IN THE PROCEEDS OF 25 A TAX AUTHORIZED BY LAW TO BE LEVIED FOR AUTHORITY PURPOSES 26 OR MADE AVAILABLE BY AN AUTHORITY SHALL BECOME OR MAY BE 27 DECLARED DUE BEFORE THE STATED MATURITY THEREOF. 28 (11) VEST IN THE OBLIGEES OF THE AUTHORITY, OR ANY 29 PROPORTION OF THEM, THE RIGHT TO ENFORCE THE PAYMENT OF THE 30 BONDS OR ANY COVENANTS SECURING OR RELATING TO THE BONDS; 19930H0878B1975 - 74 -
1 VEST IN A TRUSTEE THE RIGHT, IN THE EVENT OF DEFAULT BY THE 2 AUTHORITY, TO TAKE POSSESSION AND USE, OPERATE AND MANAGE ANY 3 REAL OR PERSONAL PROPERTY AND TO COLLECT THE RENTS AND 4 REVENUES ARISING THEREFROM AND TO DISPOSE OF SUCH MONEYS IN 5 ACCORDANCE WITH THE AGREEMENT OF THE AUTHORITY WITH SUCH 6 TRUSTEE; PROVIDE FOR THE POWERS AND DUTIES OF A TRUSTEE AND 7 TO LIMIT LIABILITIES THEREOF; AND PROVIDE THE TERMS AND 8 CONDITIONS UPON WHICH THE TRUSTEE OR THE OBLIGEES OF THE 9 AUTHORITY, OR ANY PROPORTION OF THEM, MAY ENFORCE ANY 10 COVENANT OR RIGHTS SECURING OR RELATING TO THE BONDS. 11 (12) NEGOTIATE AND ENTER INTO INTEREST RATE EXCHANGE 12 AGREEMENTS, INTEREST RATE CAP, COLLAR, CORRIDOR, CEILING AND 13 FLOOR AGREEMENTS, FORWARD AGREEMENTS, FLOAT AGREEMENTS AND 14 OTHER SIMILAR ARRANGEMENTS WHICH, IN THE JUDGMENT OF THE 15 AUTHORITY, WILL ASSIST THE AUTHORITY IN MANAGING THE INTEREST 16 COSTS OF THE AUTHORITY. 17 (13) OBTAIN LETTERS OF CREDIT, BOND INSURANCE AND OTHER 18 FACILITIES FOR CREDIT ENHANCEMENT AND LIQUIDITY. 19 (14) EXERCISE ALL OR ANY PART OR COMBINATION OF THE 20 POWERS GRANTED IN THIS SECTION TO MAKE COVENANTS OTHER THAN 21 AND IN ADDITION TO THE COVENANTS EXPRESSLY AUTHORIZED IN THIS 22 SECTION, TO MAKE SUCH COVENANTS AND TO DO ANY AND ALL SUCH 23 ACTS AND THINGS AS MAY BE NECESSARY OR CONVENIENT OR 24 DESIRABLE IN ORDER TO SECURE ITS BONDS, OR, IN THE ABSOLUTE 25 DISCRETION OF THE AUTHORITY, AS WILL TEND TO ACCOMPLISH THE 26 PURPOSES OF THIS CHAPTER, BY MAKING THE BONDS MORE MARKETABLE 27 NOTWITHSTANDING THAT SUCH COVENANTS, ACTS OR THINGS MAY NOT 28 BE SPECIFICALLY ENUMERATED IN THIS SECTION. 29 (15) EXCEPT AS SPECIFICALLY AUTHORIZED BY THIS CHAPTER, 30 THE REAL PROPERTY OF THE AUTHORITY SHALL NOT BE MORTGAGED AND 19930H0878B1975 - 75 -
1 SHALL NOT BE SUBJECT TO ATTACHMENT NOR LEVIED UPON BY 2 EXECUTION OR OTHERWISE. THE REVENUES OF THE AUTHORITY AND 3 THE REAL AND TANGIBLE PERSONAL PROPERTY OF THE AUTHORITY 4 SHALL BE PLEDGED OR OTHERWISE ENCUMBERED ONLY AS EXPRESSLY 5 PROVIDED IN THIS SECTION AND, EXCEPT TO THE EXTENT NECESSARY 6 TO EFFECTUATE SUCH PLEDGE OR ENCUMBRANCE, SHALL NOT BE 7 SUBJECT TO ATTACHMENT NOR LEVIED UPON BY EXECUTION OR 8 OTHERWISE. 9 § 1767. BONDS TO BE LEGAL INVESTMENTS. 10 BONDS ISSUED UNDER THIS CHAPTER ARE HEREBY MADE SECURITIES IN 11 WHICH ALL PUBLIC OFFICERS AND THE INSTRUMENTALITIES AND AGENCIES 12 OF THE COMMONWEALTH AND ITS POLITICAL SUBDIVISIONS, ALL 13 INSURANCE COMPANIES, BANKS, BANK AND TRUST COMPANIES, TRUST 14 COMPANIES, BANKING ASSOCIATIONS, BANKING CORPORATIONS, SAVINGS 15 BANKS, INVESTMENT COMPANIES, EXECUTORS, TRUSTEES, THE TRUSTEES 16 OF ANY RETIREMENT, PENSION OR ANNUITY FUND OR SYSTEM OF THE 17 COMMONWEALTH AND OTHER FIDUCIARIES MAY PROPERLY AND LEGALLY 18 INVEST FUNDS, INCLUDING CAPITAL, DEPOSITS OR OTHER FUNDS IN 19 THEIR CONTROL OR BELONGING TO THEM. THESE BONDS ARE HEREBY MADE 20 SECURITIES WHICH MAY PROPERLY AND LEGALLY BE DEPOSITED WITH AND 21 RECEIVED BY ANY COMMONWEALTH OR MUNICIPAL OFFICER OR ANY AGENCY 22 OR INSTRUMENTALITY OR POLITICAL SUBDIVISION OF THE COMMONWEALTH 23 FOR ANY PURPOSE FOR WHICH THE DEPOSIT OF BONDS OR OTHER 24 OBLIGATIONS OF THE COMMONWEALTH NOW OR MAY HEREAFTER BE 25 AUTHORIZED BY LAW. 26 § 1768. RIGHTS AND REMEDIES. 27 (A) ADDITIONAL RIGHTS.--AN OBLIGEE OF AN AUTHORITY SHALL 28 HAVE THE RIGHT, IN ADDITION TO ALL OTHER RIGHTS WHICH MAY BE 29 CONFERRED ON THE OBLIGEE, SUBJECT ONLY TO ANY CONTRACTUAL 30 RESTRICTIONS BINDING UPON THE OBLIGEE: 19930H0878B1975 - 76 -
1 (1) BY MANDAMUS, SUIT, ACTION OR PROCEEDING AT LAW OR IN 2 EQUITY, TO COMPEL THE AUTHORITY AND THE MEMBERS, OFFICERS, 3 AGENTS OR EMPLOYEES THEREOF TO PERFORM EACH AND EVERY TERM, 4 PROVISION AND COVENANT CONTAINED IN ANY BOND OR CONTRACT OF 5 THE AUTHORITY WITH OR FOR THE BENEFIT OF THE OBLIGEE AND TO 6 REQUIRE THE CARRYING OUT OF ANY OR ALL COVENANTS AND 7 AGREEMENTS OF THE AUTHORITY AND THE FULFILLMENT OF ALL DUTIES 8 IMPOSED UPON THE AUTHORITY BY THIS CHAPTER. 9 (2) BY PROCEEDING IN EQUITY, TO OBTAIN AN INJUNCTION 10 AGAINST ANY ACTS OR THINGS WHICH MAY BE UNLAWFUL OR THE 11 VIOLATION OF ANY OF THE RIGHTS OF THE OBLIGEE OF THE 12 AUTHORITY. 13 (3) TO REQUIRE THE AUTHORITY TO ACCOUNT AS IF IT WERE 14 THE TRUSTEE OF AN EXPRESS TRUST FOR THE OBLIGEES OF THE 15 AUTHORITY FOR ANY PLEDGED REVENUES RECEIVED. 16 (4) TO ENFORCE A PLEDGE OF OR SECURITY INTEREST IN 17 REVENUES OF THE AUTHORITY SECURING PAYMENT OF THE BONDS 18 AGAINST ALL COMMONWEALTH AND LOCAL PUBLIC OFFICIALS IN 19 POSSESSION OF ANY REVENUES AT ANY TIME, WHICH REVENUES MAY BE 20 COLLECTED DIRECTLY FROM SUCH OFFICIALS UPON NOTICE BY THE 21 OBLIGEE OF THE AUTHORITY OR A TRUSTEE FOR APPLICATION TO THE 22 PAYMENT OF THE BONDS AS AND WHEN DUE FOR DEPOSITS IN ANY 23 SINKING, BOND OR DEBT SERVICE FUND ESTABLISHED WITH THE 24 TRUSTEE AT THE TIMES AND IN THE AMOUNTS SPECIFIED IN THE 25 BONDS OR THE RESOLUTION OR INDENTURE OR TRUST AGREEMENT 26 SECURING THE BONDS. ANY COMMONWEALTH OR LOCAL PUBLIC OFFICIAL 27 IN POSSESSION OF ANY REVENUES SHALL MAKE PAYMENT AGAINST 28 RECEIPT AND SHALL THEREBY BE DISCHARGED FROM ANY FURTHER 29 LIABILITY OR RESPONSIBILITY FOR THE REVENUES. IF THE PAYMENT 30 SHALL BE TO AN OBLIGEE OF THE AUTHORITY, IT SHALL BE MADE 19930H0878B1975 - 77 -
1 AGAINST SURRENDER OF THE BONDS TO THE PAYOR FOR DELIVERY TO 2 THE AUTHORITY IN THE CASE OF PAYMENT IN FULL; OTHERWISE, IT 3 SHALL BE MADE AGAINST PRODUCTION OF THE BONDS FOR NOTATION 4 THEREON OF THE AMOUNT OF THE PAYMENT. THE PROVISIONS OF THIS 5 SECTION WITH RESPECT TO THE ENFORCEABILITY AND COLLECTION OF 6 REVENUES WHICH SECURE BONDS OF THE AUTHORITY SHALL SUPERSEDE 7 ANY CONTRARY OR INCONSISTENT STATUTORY PROVISION OR RULE OF 8 LAW. 9 (B) APPLICATION OF SECTION.--THIS SECTION SHALL BE CONSTRUED 10 AND APPLIED TO FULFILL THE LEGISLATIVE PURPOSE OF CLARIFYING AND 11 FACILITATING THE FINANCING OF THE AUTHORITY OF THE COSTS OF ITS 12 TRANSPORTATION SYSTEM BY ASSURING TO THE OBLIGEES OF THE 13 AUTHORITY THE FULL AND IMMEDIATE BENEFIT OF THE SECURITY 14 THEREFOR WITHOUT DELAY, DIMINUTION OR INTERFERENCE BASED ON ANY 15 STATUTE, DECISION, ORDINANCE OR ADMINISTRATIVE RULE OR PRACTICE. 16 § 1769. ADDITIONAL REMEDIES CONFERRABLE BY AN AUTHORITY. 17 AN AUTHORITY SHALL HAVE POWER, BY ITS RESOLUTION, TRUST 18 INDENTURE OR LOAN OR LEASE AGREEMENT, TO CONFER UPON ANY 19 OBLIGEES HOLDING OR REPRESENTING A SPECIFIED PERCENTAGE OF 20 BONDS, OR UPON ANY BOND INSURER OR PROVIDER OF A LETTER OF 21 CREDIT OR OTHER CREDIT OR LIQUIDITY FACILITY, THE RIGHT, IN 22 ADDITION TO ALL RIGHTS THAT MAY OTHERWISE BE CONFERRED, UPON THE 23 HAPPENING OF AN EVENT OF DEFAULT OR SUCH PARTICULAR EVENTS OF 24 DEFAULT AS MAY BE SPECIFIED IN SUCH RESOLUTION OR INSTRUMENT, BY 25 SUIT, ACTION OR PROCEEDING IN ANY COURT OF COMPETENT 26 JURISDICTION TO OBTAIN THE APPOINTMENT OF A RECEIVER OF ANY REAL 27 PROPERTY OR PERSONAL PROPERTY OR LEASEHOLD INTEREST OF THE 28 AUTHORITY AND OF THE RENTS AND PROFITS THEREFROM. IF A RECEIVER 29 IS APPOINTED, THE RECEIVER MAY ENTER AND TAKE POSSESSION OF SUCH 30 REAL PROPERTY OR ANY LEASEHOLD INTEREST, OPERATE THE SAME AND 19930H0878B1975 - 78 -
1 COLLECT AND RECEIVE ALL REVENUES OR OTHER INCOME THEREAFTER 2 ARISING THEREFROM AND SHALL KEEP SUCH MONEYS IN A SEPARATE 3 ACCOUNT AND APPLY THE SAME IN ACCORDANCE WITH THE OBLIGATIONS OF 4 THE AUTHORITY AS THE COURT SHALL DIRECT. NOTHING IN THIS SECTION 5 OR ANY OTHER SECTION OF THIS CHAPTER SHALL AUTHORIZE ANY 6 RECEIVER APPOINTED UNDER THIS CHAPTER FOR THE PURPOSE OF 7 OPERATING AND MAINTAINING ANY FACILITIES OF THE AUTHORITY TO 8 SELL, ASSIGN, MORTGAGE OR OTHERWISE DISPOSE OF ANY OF THE 9 ASSETS, OF WHATEVER KIND OR CHARACTER, BELONGING TO THE 10 AUTHORITY, EXCEPT FOR THE SALE OR OTHER DISPOSITION OF MOVEABLE 11 EQUIPMENT OR OTHER TANGIBLE PERSONAL PROPERTY IN THE ORDINARY 12 COURSE OF BUSINESS OR THE SALE OR DISPOSITION OF REAL OR 13 PERSONAL PROPERTY TO THE EXTENT IT IS PLEDGED TO SECURE THE 14 AUTHORITY'S BONDS. IT IS THE INTENTION OF THIS CHAPTER TO LIMIT 15 THE POWERS OF THE RECEIVER TO THE OPERATION AND MAINTENANCE OF 16 THE FACILITIES OF THE AUTHORITY AS THE COURT SHALL DIRECT, AND 17 NO OBLIGEE OF THE AUTHORITY SHALL EVER HAVE THE RIGHT IN ANY 18 SUIT, ACTION OR PROCEEDING, AT LAW OR IN EQUITY, TO COMPEL A 19 RECEIVER, NOR SHALL ANY RECEIVER EVER BE AUTHORIZED OR ANY COURT 20 BE EMPOWERED TO DIRECT THE RECEIVER, TO SELL, ASSIGN, MORTGAGE 21 OR OTHERWISE DISPOSE OF ANY ASSETS, OF WHATEVER KIND OR 22 CHARACTER, BELONGING TO THE AUTHORITY, EXCEPT FOR THE 23 EXPENDITURE OF FUNDS AND THE SALE OR OTHER DISPOSITION OF 24 MOVEABLE EQUIPMENT OR OTHER TANGIBLE PERSONAL PROPERTY IN THE 25 ORDINARY COURSE OF BUSINESS OR THE SALE OR DISPOSITION OF REAL 26 OR PERSONAL PROPERTY TO THE EXTENT IT IS PLEDGED TO SECURE THE 27 AUTHORITY'S BONDS. 28 § 1770. VALIDITY OF PLEDGE. 29 ANY PLEDGE OF OR GRANT OF A LIEN ON OR SECURITY INTEREST IN 30 REVENUES OF AN AUTHORITY OR REAL OR PERSONAL PROPERTY OF AN 19930H0878B1975 - 79 -
1 AUTHORITY MADE BY AN AUTHORITY SHALL BE VALID AND BINDING FROM 2 THE TIME WHEN THE PLEDGE IS MADE, THE REVENUES OR OTHER PROPERTY 3 SO PLEDGED AND THEREAFTER RECEIVED BY THE AUTHORITY MAKING SUCH 4 PLEDGE SHALL IMMEDIATELY BE SUBJECT TO THE LIEN OF ANY SUCH 5 PLEDGE, LIEN OR SECURITY INTEREST WITHOUT ANY PHYSICAL DELIVERY 6 THEREOF OR FURTHER ACT, AND THE LIEN OF ANY SUCH PLEDGE OR 7 SECURITY INTEREST SHALL BE VALID AND BINDING AS AGAINST ALL 8 PARTIES HAVING CLAIMS OF ANY KIND IN TORT, CONTRACT OR OTHERWISE 9 AGAINST THE AUTHORITY IRRESPECTIVE OF WHETHER THE PARTIES HAVE 10 NOTICE THEREOF. NEITHER THE RESOLUTION NOR ANY OTHER INSTRUMENT 11 OF THE AUTHORITY BY WHICH A PLEDGE, LIEN OR SECURITY INTEREST IS 12 CREATED NEED BE RECORDED OR FILED TO PERFECT SUCH PLEDGE OR 13 SECURITY INTEREST. 14 § 1771. SECURITY INTEREST IN FUNDS AND ACCOUNTS. 15 ANY MONEYS DEPOSITED IN ANY FUND CREATED BY THE AUTHORITY 16 PLEDGED TO BE USED TO PAY DEBT SERVICE ON BONDS OF THE 17 AUTHORITY, INCLUDING ANY SINKING FUND OR DEBT SERVICE RESERVE 18 FUND, AND ALL INVESTMENTS AND PROCEEDS OF INVESTMENTS THEREOF, 19 SHALL, WITHOUT FURTHER ACTION OR FILING, BE SUBJECTED TO A 20 PERFECTED SECURITY INTEREST FOR THE OBLIGEES OF THE AUTHORITY 21 WITH RESPECT TO THE BONDS UNTIL SUCH MONEYS OR INVESTMENTS SHALL 22 BE PROPERLY DISBURSED IN ACCORDANCE WITH THIS CHAPTER AND 23 SUBJECT TO THE TERMS OF ANY TRUST INDENTURE OR OTHER CONTRACT 24 BETWEEN THE AUTHORITY AND THE OBLIGEES OF THE AUTHORITY WITH 25 RESPECT TO THE BONDS. 26 § 1772. PAYMENT OF PROCEEDS OF TAX LEVIED FOR AUTHORITY 27 PURPOSES. 28 THE PROCEEDS OF ANY TAX LEVIED FOR AUTHORITY PURPOSES OR MADE 29 AVAILABLE FOR USE BY THE AUTHORITY AND COLLECTED BY THE 30 DEPARTMENT OF REVENUE, WHICH TAX PROCEEDS SHALL HAVE BEEN 19930H0878B1975 - 80 -
1 PLEDGED BY AN AUTHORITY TO SECURE ITS BONDS, SHALL BE 2 TRANSFERRED BY THE STATE TREASURER TO OR UPON THE ORDER OF THE 3 AUTHORITY AT THE TIMES PROVIDED BY LAW, SUBJECT TO ANY 4 LIMITATIONS SET FORTH IN THE RESOLUTION OF THE AUTHORITY 5 AUTHORIZING THE BONDS. 6 § 1773. LIMITATION ON AUTHORITY UNDER FEDERAL BANKRUPTCY CODE. 7 SO LONG AS AN AUTHORITY SHALL HAVE OUTSTANDING ANY BONDS 8 ISSUED UNDER THIS CHAPTER, THE AUTHORITY SHALL NOT BE AUTHORIZED 9 TO FILE A PETITION FOR RELIEF UNDER 11 U.S.C. CHAPTER 9 10 (RELATING TO ADJUSTMENT OF DEBTS OF A MUNICIPALITY), AND NO 11 PUBLIC OFFICER OR AGENCY OR INSTRUMENTALITY OF THE COMMONWEALTH 12 SHALL AUTHORIZE THE AUTHORITY TO BECOME A DEBTOR UNDER 11 U.S.C. 13 CHAPTER 9 SO LONG AS ANY BONDS ISSUED UNDER THIS CHAPTER ARE 14 OUTSTANDING. 15 SUBCHAPTER E 16 MISCELLANEOUS PROVISIONS 17 SEC. 18 1781. EXEMPTION FROM TAXATION. 19 1782. RIGHTS AND REMEDIES PRESERVED. 20 1783. OFFICERS AND EMPLOYEES CONTINUED. 21 1784. CONTINUANCE OF BONDS. 22 1785. REPEAL. 23 § 1781. EXEMPTION FROM TAXATION. 24 THE EFFECTUATION OF THE AUTHORIZED PURPOSES OF AN AUTHORITY 25 CREATED OR CONTINUED UNDER THIS CHAPTER SHALL AND WILL BE IN ALL 26 RESPECTS FOR THE BENEFIT OF THE PEOPLE OF THIS COMMONWEALTH, FOR 27 THE INCREASE OF THEIR COMMERCE AND PROSPERITY AND FOR THE 28 IMPROVEMENTS OF THEIR HEALTH AND LIVING CONDITIONS, AND, SINCE 29 AN AUTHORITY WILL, AS A PUBLIC INSTRUMENTALITY OF THE 30 COMMONWEALTH, BE PERFORMING ESSENTIAL GOVERNMENTAL FUNCTIONS IN 19930H0878B1975 - 81 -
1 EFFECTUATING SUCH PURPOSES, SUCH AN AUTHORITY SHALL NOT BE 2 REQUIRED TO PAY ANY TAXES OR ASSESSMENTS OF ANY KIND OR NATURE 3 WHATSOEVER, NOW IN EXISTENCE OR TO BE ENACTED IN THE FUTURE, 4 WHETHER IMPOSED BY THE COMMONWEALTH OR BY ANY GOVERNMENT AGENCY 5 UPON ANY PROPERTY OR THE INCOME THEREFROM ACQUIRED OR USED OR 6 PERMITTED TO BE USED BY AN AUTHORITY FOR SUCH PURPOSES, AND THE 7 BONDS ISSUED BY ANY AUTHORITY, THEIR TRANSFER AND THE INCOME 8 THEREFROM, INCLUDING ANY PROFITS MADE ON THE SALE THEREOF, SHALL 9 AT ALL TIMES BE FREE FROM STATE AND LOCAL TAXATION WITHIN THIS 10 COMMONWEALTH. THIS EXEMPTION SHALL NOT EXTEND TO GIFT, ESTATE, 11 SUCCESSION OR INHERITANCE TAXES OR ANY OTHER TAXES NOT LEVIED 12 DIRECTLY ON THE BONDS, THE TRANSFER THEREOF, THE INCOME 13 THEREFROM OR THE REALIZATION OF PROFITS ON THE SALE THEREOF. 14 § 1782. RIGHTS AND REMEDIES PRESERVED. 15 THE PROVISIONS OF THIS CHAPTER SHALL NOT IN ANY WAY IMPAIR OR 16 IN ANY MANNER AFFECT THE RIGHTS AND REMEDIES OF OBLIGEES OF A 17 CONTINUED AUTHORITY, AND, NOTWITHSTANDING ANY OTHER PROVISION OF 18 THIS CHAPTER, ALL SUCH RIGHTS AND REMEDIES SHALL BE PRESERVED BY 19 THIS CHAPTER AND SHALL BE AND SHALL REMAIN VALID, BINDING AND 20 ENFORCEABLE IN ALL RESPECTS. AS USED IN THIS SECTION, "OBLIGEES 21 OF A CONTINUED AUTHORITY" SHALL MEAN THE HOLDERS OF ANY NOTES, 22 BONDS, REFUNDING NOTES AND BONDS, INTERIM CERTIFICATES, 23 DEBENTURES AND OTHER EVIDENCES OF INDEBTEDNESS, OBLIGEES OF 24 CONTRACTS OR OTHER OBLIGATIONS OF AN AUTHORITY ESTABLISHED UNDER 25 THE FORMER PROVISIONS OF ARTICLE III OF THE ACT OF JANUARY 22, 26 1968 (P.L.42, NO.8), KNOWN AS THE PENNSYLVANIA URBAN MASS 27 TRANSPORTATION LAW, OR THE FORMER PROVISIONS OF CHAPTER 15 28 (RELATING TO METROPOLITAN TRANSPORTATION AUTHORITIES) AND 29 CONTINUED UNDER SECTION 1711 (RELATING TO CREATION OF 30 METROPOLITAN TRANSPORTATION AUTHORITIES). 19930H0878B1975 - 82 -
1 § 1783. OFFICERS AND EMPLOYEES CONTINUED. 2 WITH RESPECT TO THE OFFICERS AND EMPLOYEES OF ANY AUTHORITY 3 ESTABLISHED UNDER THE FORMER PROVISIONS OF ARTICLE III OF THE 4 ACT OF JANUARY 22, 1968 (P.L.42, NO.8), KNOWN AS THE 5 PENNSYLVANIA URBAN MASS TRANSPORTATION LAW OR THE FORMER 6 PROVISIONS OF CHAPTER 15 (RELATING TO METROPOLITAN 7 TRANSPORTATION AUTHORITIES) ALL SUCH OFFICERS SHALL CONTINUE IN 8 OFFICE UNTIL THE EXPIRATION OF THEIR RESPECTIVE TERMS OF OFFICE, 9 AND ALL EMPLOYEES SHALL CONTINUE IN EMPLOYMENT UNDER THE TERMS 10 AND CONDITIONS OF THEIR RESPECTIVE CONTRACTS OR AGREEMENTS OF 11 EMPLOYMENT; AND ALL OFFICERS AND EMPLOYEES SHALL EXERCISE THE 12 POWERS, FUNCTIONS AND DUTIES OF THEIR RESPECTIVE OFFICES OR 13 EMPLOYMENT UNDER THIS CHAPTER. 14 § 1784. CONTINUANCE OF BONDS. 15 BONDS, CONTRACTS AND OBLIGATIONS OF AN AUTHORITY CONTINUED 16 UNDER THIS CHAPTER WHICH CONTRACTS AND OBLIGATIONS ARE IN EFFECT 17 OR OUTSTANDING ON THE EFFECTIVE DATE OF THIS ACT SHALL CONTINUE 18 IN FULL FORCE AND EFFECT. 19 § 1785. REPEAL. 20 ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS THEY ARE 21 INCONSISTENT WITH THIS ACT. 22 SECTION 4. SECTIONS 1532 AND 1550 OF TITLE 75 ARE AMENDED BY 23 ADDING SUBSECTIONS TO READ: 24 § 1532. Revocation or suspension of operating privilege. 25 * * * 26 (c) Suspension.--The department shall suspend the operating 27 privilege of any person upon receiving a certified record of the 28 person's conviction of any offense involving the possession, 29 sale, delivery, offering for sale, holding for sale or giving 30 away of any controlled substance under the laws of the United 19930H0878B1975 - 83 -
1 States, this Commonwealth or any other state. 2 (1) The period of suspension shall be as follows: 3 (i) For a first offense, a period of six months from 4 the date of the suspension. 5 (ii) For a second offense, a period of one year from 6 the date of the suspension. 7 (iii) For a third and any subsequent offense 8 thereafter, a period of two years from the date of the 9 suspension. 10 (2) For the purposes of this subsection, the term 11 "conviction" shall include any conviction or adjudication of 12 delinquency for any of the offenses listed in paragraph (1), 13 whether in this Commonwealth or any other Federal or state 14 court. 15 § 1550. Judicial review. 16 * * * 17 (d) Out-of-State documentation.--In any proceeding under 18 this section, documents received by the department from the 19 courts or administrative bodies of other states or the Federal 20 Government shall be admissible into evidence to support the 21 department's case. In addition, the department may treat the 22 received documents as documents of the department and use any of 23 the methods of storage permitted under the provisions of 42 24 Pa.C.S. § 6109 (relating to photographic copies of business and 25 public records), and may reproduce such documents in accordance 26 with the provisions of 42 Pa.C.S. § 6103 (relating to proof of 27 official records). In addition, if the department receives 28 information from courts or administrative bodies of other states 29 or the Federal Government by means of electronic transmission, 30 it may certify that it has received the information by means of 19930H0878B1975 - 84 -
1 electronic transmission and that certification shall be prima 2 facie proof of the adjudication and facts contained in such an 3 electronic transmission. 4 Section 2 5. Section 6323(1) of Title 75 is amended to read: <-- 5 § 6323. Reports by courts. 6 Subject to any inconsistent procedures and standards relating 7 to reports and transmission of funds prescribed pursuant to 8 Title 42 (relating to judiciary and judicial procedure): 9 (1) The clerk of any court of this Commonwealth, within 10 ten days after final judgment of conviction or acquittal or 11 other disposition of charges under any of the provisions of 12 this title or under section 13 of the act of April 14, 1972 13 (P.L.233, No.64), known as The Controlled Substance, Drug, 14 Device and Cosmetic Act, including an adjudication of 15 delinquency or the granting of a consent decree, shall send 16 to the department a record of the judgment of conviction, 17 acquittal or other disposition. 18 * * * 19 Section 3 6. Section 13(m) of the act of April 14, 1972 <-- 20 (P.L.233, No.64), known as The Controlled Substance, Drug, 21 Device and Cosmetic Act, is repealed. 22 Section 4 7. The provisions of 75 Pa.C.S. §§ 1532(c) and <-- 23 1550(d) and the repeal of the provisions of section 13(m) of the 24 act of April 14, 1972 (P.L.233, No.64), known as The Controlled 25 Substance, Drug, Device and Cosmetic Act, by the act shall not 26 affect any act done, liability incurred or right accrued or 27 vested, or affect any suit or prosecution pending or be 28 instituted to enforce any right or penalty, or to punish any 29 offense, under the authority of any statute repealed by this 30 act. 19930H0878B1975 - 85 -
1 Section 5. This act shall take effect in 60 days. <--
2 SECTION 8. THIS ACT SHALL TAKE EFFECT AS FOLLOWS: <--
3 (1) THE AMENDMENTS OF TITLE 74 SHALL TAKE EFFECT
4 IMMEDIATELY.
5 (2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
6 DAYS.
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