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                                                      PRINTER'S NO. 1547

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1158 Session of 2007


        INTRODUCED BY MADIGAN, STOUT, SCARNATI, PILEGGI, RAFFERTY,
           ERICKSON, D. WHITE, M. WHITE, WAUGH, ARMSTRONG, WASHINGTON,
           RHOADES, WONDERLING, REGOLA AND CORMAN, NOVEMBER 13, 2007

        REFERRED TO TRANSPORTATION, NOVEMBER 13, 2007

                                     AN ACT

     1  Amending Title 74 (Transportation) of the Pennsylvania
     2     Consolidated Statutes, providing for transportation
     3     infrastructure partnership and development.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Title 74 of the Pennsylvania Consolidated
     7  Statutes is amended by adding a part to read:
     8                               PART V
     9                   TRANSPORTATION INFRASTRUCTURE
    10  Chapter
    11    91.  Partnership and Development
    12                             CHAPTER 91
    13                    PARTNERSHIP AND DEVELOPMENT
    14  Sec.
    15  9101.  Scope of chapter.
    16  9102.  Findings and declaration of policy.
    17  9103.  Definitions.
    18  9104.  Transportation development agreements.

     1  9105.  Proposals for transportation development agreements.
     2  9106.  Review and selection of proposals.
     3  9107.  Affected local jurisdictions.
     4  9108.  Terms and conditions of transportation development
     5         agreements.
     6  9109.  Material default; remedies.
     7  9110.  Financing qualifying transportation projects.
     8  9111.  Power of eminent domain.
     9  9112.  Police powers; motor vehicle laws.
    10  9113.  Taxation of authorized development entity or entities.
    11  9114.  Pennsylvania Transportation Development Trust Fund.
    12  9115.  Regional mobility account, etc.
    13  9116.  Regional mobility authority.
    14  9117.  Turnpike lease restricted.
    15  § 9101.  Scope of chapter.
    16     This chapter relates to transportation infrastructure
    17  partnership and development.
    18  § 9102.  Findings and declaration of policy.
    19     The General Assembly finds, determines and declares as
    20  follows:
    21         (1)  There is urgent public need to reduce congestion,
    22     increase capacity, improve safety and enhance economic
    23     efficiency of transportation facilities throughout this
    24     Commonwealth.
    25         (2)  The Commonwealth has limited resources to fund the
    26     maintenance and expansion of its transportation facilities.
    27         (3)  To ensure that the needs of the public are
    28     adequately addressed, alternative funding mechanisms and
    29     strategies must be developed to supplement existing public
    30     revenue sources.
    20070S1158B1547                  - 2 -     

     1         (4)  Public entities should be authorized to enter into
     2     transportation development agreements with private entities,
     3     other public entities or partnerships of such entities in
     4     order to accelerate the cost-effective delivery of improved
     5     transportation facilities throughout this Commonwealth.
     6  § 9103.  Definitions.
     7     The following words and phrases when used in this chapter
     8  shall have the meanings given to them in this section unless the
     9  context clearly indicates otherwise:
    10     "Affected local jurisdiction."  A county, city, township,
    11  borough, incorporated town, local planning organization,
    12  regional planning organization, metropolitan transportation
    13  authority or regional mobility authority within whose
    14  jurisdictional boundaries all or a portion of a qualifying
    15  transportation project is located, or which is or will be
    16  directly affected by the project.
    17     "Approving body."  In the case of a proposal subject to State
    18  Transportation Commission review and approval under section
    19  9104(a) (relating to transportation development agreements), the
    20  State Transportation Commission and the proprietary public
    21  entity. In the case of a proposal not subject to State
    22  Transportation Commission approval under section 9104(a), the
    23  proprietary public entity.
    24     "Authorized development entity."  A private entity, another
    25  public entity or any partnership of the entities authorized by
    26  the approving body or bodies to assume responsibility for the
    27  use of or control, in whole or in part, of a transportation
    28  facility from a proprietary public entity.
    29     "Department."  The Department of Transportation of the
    30  Commonwealth.
    20070S1158B1547                  - 3 -     

     1     "Design build."  The mode of infrastructure development
     2  whereby the contractor is responsible for both the design and
     3  construction of a qualifying transportation project.
     4     "Develop" or "development."  The term includes, but is not
     5  limited to, the acts or functions of planning, designing,
     6  financing, constructing, purchasing, installing, adding,
     7  extending or other activities relating to the improvement of a
     8  transportation facility.
     9     "Fund."  The Pennsylvania Transportation Development Trust
    10  Fund established under section 9114 (relating to Pennsylvania
    11  Transportation Development Trust Fund).
    12     "Intergovernmental Cooperation Act."  53 Pa.C.S. Pt. III
    13  Subpt. D (relating to area government and intergovernmental
    14  cooperation).
    15     "Local governmental entity."  A unit of government with less
    16  than Statewide jurisdiction, or any officially designated public
    17  agency or authority of the unit of government, that has the
    18  responsibility for planning, construction, operation or
    19  maintenance of or jurisdiction over a transportation facility.
    20  The term includes, but is not limited to, a county, city,
    21  township, borough, incorporated town, municipal authority, local
    22  or regional planning organization, metropolitan transportation
    23  authority, regional mobility authority or other political
    24  subdivision or governmental entity created with less than
    25  Statewide jurisdiction, or any combination of the entities
    26  acting pursuant to 53 Pa.C.S. Pt. III Subpt. D (relating to area
    27  government and intergovernmental cooperation) or a similar
    28  statute.
    29     "Local planning organization."  An entity whose jurisdiction
    30  does not exceed the county in which it is located, and which is
    20070S1158B1547                  - 4 -     

     1  charged with transportation planning responsibilities in the
     2  area in which a qualifying transportation project is located.
     3     "Material default."  Failure of an authorized development
     4  entity or entities to perform any duties under a transportation
     5  development agreement which jeopardizes delivery of adequate
     6  service to the public and remains unsatisfied after a reasonable
     7  period of time and after the authorized development entity or
     8  entities has received written notice from the approving body or
     9  bodies of the failure.
    10     "Maximum rate of return."  The negotiated maximum rate of
    11  return a private entity can receive as an authorized development
    12  entity from the operating and nonoperating revenues of a
    13  transportation facility pursuant to a transportation development
    14  agreement, including any incidental receipts and other income
    15  derived from the transportation facility covered by the
    16  agreement.
    17     "Municipality Authorities Act."  53 Pa.C.S. Ch. 56 (relating
    18  to municipal authorities).
    19     "Operate" or "operation."  Includes, but is not limited to,
    20  the acts or functions of managing, controlling, maintaining,
    21  repairing, conducting financial proceedings and other day-to-day
    22  activities of an enterprise.
    23     "Partnership."  An organization structured as a partnership
    24  or joint venture and comprised of any combination of private
    25  entities or public entities or both.
    26     "Private entity."  A natural person, sole proprietorship,
    27  corporation, company, association, syndicate, partnership,
    28  limited liability company, business trust, public benefit
    29  corporation, nonprofit entity or any other entity not
    30  specifically listed in this definition entering into a
    20070S1158B1547                  - 5 -     

     1  transportation development agreement with a proprietary public
     2  entity for a qualifying transportation project.
     3     "Proprietary public entity."  The public entity that owns the
     4  proposed or existing transportation facility subject to a
     5  transportation development agreement.
     6     "Public entity."  The Commonwealth or any department,
     7  commission, authority or agency thereof or any local government
     8  entity. The term shall specifically include the State
     9  Transportation Commission, the Department of Transportation and
    10  the Pennsylvania Turnpike Commission. For purposes of this
    11  chapter, the term does not include the General Assembly and its
    12  members, officers or agencies or any court or other office or
    13  agency of the Pennsylvania judicial system.
    14     "Qualifying transportation project."  A proposed or existing
    15  undertaking by an authorized development entity or entities for
    16  the development or operation of a transportation facility
    17  totally or partially within this Commonwealth.
    18     "Regional mobility account."  A separate account of the
    19  Commonwealth within the Pennsylvania Transportation Development
    20  Trust Fund, under the custody of the State Treasurer, into which
    21  transportation development revenues or other funds, including
    22  surcharges imposed by the Commonwealth, may be deposited for
    23  operation or development of regional transportation facilities.
    24     "Regional mobility authority."  An authority or similar local
    25  government entity created pursuant to 53 Pa.C.S. Pt. III Subpt.
    26  D (relating to area government and intergovernmental
    27  cooperation), 53 Pa.C.S. Ch. 56 (relating to municipal
    28  authorities) or other Commonwealth statute and recognized under
    29  this chapter and regulations issued by the State Transportation
    30  Commission for the purpose of promoting regional transportation
    20070S1158B1547                  - 6 -     

     1  development.
     2     "Regional planning organization."  An entity with multicounty
     3  jurisdiction and designated under Federal or State law with
     4  transportation planning responsibilities in the region in which
     5  a qualifying transportation project is located.
     6     "Request for proposals."  All materials and documents
     7  prepared by or on behalf of a public entity to solicit proposals
     8  from public or private entities to enter into a transportation
     9  development agreement for a qualifying transportation project as
    10  set forth in this chapter.
    11     "Right-to-Know Law."  The act of June 21, 1957 (P.L.390,
    12  No.212), referred to as the Right-to-Know Law.
    13     "Separations Act."  The act of May 1, 1913 (P.L.155, No.104),
    14  entitled "An act regulating the letting of certain contracts for
    15  the erection, construction, and alteration of public buildings."
    16     "State Adverse Interest Act."  The act of July 19, 1957
    17  (P.L.1017, No.451), known as the State Adverse Interest Act.
    18     "State advisor."  An entity as defined in section 2 of the
    19  act of July 19, 1957 (P.L.1017, No.451), known as the State
    20  Adverse Interest Act.
    21     "State consultant."  An entity as defined in section 2 of the
    22  act of July 19, 1957 (P.L.1017, No.451), known as the State
    23  Adverse Interest Act.
    24     "Transportation Commission."  The State Transportation
    25  Commission of the Commonwealth established under section 468 of
    26  the act of April 9, 1929 (P.L.177, No.175), known as The
    27  Administrative Code of 1929.
    28     "Transportation development agreement."  A lease, license,
    29  franchise, easement, concession or other binding agreement
    30  transferring rights for the use or control, in whole or in part,
    20070S1158B1547                  - 7 -     

     1  of a transportation facility by a proprietary public entity to
     2  an authorized development entity or entities for a definite term
     3  during which the authorized development entity or entities will
     4  provide transportation-related services, including, but not
     5  limited to, any one or more of the following: operations and
     6  maintenance, revenue collection, toll collection enforcement,
     7  design, construction, development and other activities with
     8  respect to existing or new transportation facilities that
     9  enhance throughput, reduce congestion, improve safety or
    10  otherwise manage or improve a transportation facility in return
    11  for the right to receive all or a portion of the revenues of the
    12  transportation facility.
    13     "Transportation development revenues."  Money generated from
    14  or received in support of the development or operation of a
    15  qualifying transportation project, including, but not limited
    16  to, user fees, service payments, surcharges, lease payments,
    17  governmental appropriations or grants, proceeds of debt or
    18  equity issuance, income from operations and earnings on
    19  investments.
    20     "Transportation facility."  A road, bridge, tunnel, overpass,
    21  ferry, busway, guideway, other public transportation facility,
    22  vehicle parking facility, port facility, multimodal
    23  transportation facility, airport, station, hub, terminal or
    24  similar facility used for the transportation of persons, animals
    25  or goods, together with any buildings, structures, parking
    26  areas, appurtenances and other property needed to operate the
    27  facility. The term includes any improvements or substantial
    28  enhancements thereto.
    29     "User fees."  Rates, tolls, fees or other charges imposed or
    30  collected by an authorized development entity or entities for
    20070S1158B1547                  - 8 -     

     1  use of all or a portion of a transportation facility pursuant to
     2  a transportation development agreement.
     3  § 9104.  Transportation development agreements.
     4     (a)  Authorization and approval.--Subject to the provisions
     5  of this chapter and the approval of its governing body, a
     6  proprietary public entity has full authority to enter into a
     7  transportation development agreement with an authorized
     8  development entity or entities governing the development or
     9  operation of all or any portion of a transportation facility,
    10  except that, if the transportation development agreement results
    11  in the proprietary public entity disposing of or relinquishing
    12  its control of a transportation facility or pertains to a
    13  transportation facility that receives Commonwealth funding, then
    14  the transportation development agreement must also be reviewed
    15  and approved by the Transportation Commission before the
    16  proprietary public entity can enter into the agreement.
    17     (b)  Project activities authorized.--Subject to the
    18  requirements of this chapter, a transportation development
    19  agreement may provide for the authorized development entity or
    20  entities to be partially or entirely responsible for any one or
    21  more of the following activities: planning, design, development,
    22  construction, reconstruction, improvement, extension or
    23  expansion, operation, repair, maintenance, management, revenue
    24  collection or financing of a transportation facility.
    25     (c)  Repositories for materials.--The Transportation
    26  Commission shall serve as the primary repository for all
    27  materials relating to the review and approval of transportation
    28  development agreements that involve transportation facilities
    29  that receive funding from the Commonwealth or result in the
    30  proprietary public entity disposing of or relinquishing its
    20070S1158B1547                  - 9 -     

     1  control over the transportation facilities. Otherwise, the
     2  proprietary public entity shall serve as the repository for
     3  materials relating to the review of transportation development
     4  agreements which do not require the approval of the
     5  Transportation Commission.
     6  § 9105.  Proposals for transportation development agreements.
     7     (a)  Solicited proposals.--Before entering into a
     8  transportation development agreement, the proprietary public
     9  entity must issue a request for proposals as set forth in this
    10  subsection. If the proposal being requested is subject to
    11  Transportation Commission review and approval pursuant to
    12  section 9104(a) (relating to transportation development
    13  agreements), the request for proposals must be authorized and
    14  issued jointly by the proprietary public entity and the
    15  Transportation Commission. Any request for proposals shall use a
    16  competitive procurement process that selects the authorized
    17  development entity whose proposal provides the best value for
    18  the proprietary public entity and for the Commonwealth. Notice
    19  of any such request for proposals shall be published in the
    20  Pennsylvania Bulletin and posted or published in whatever other
    21  medium is regularly used by the proprietary public entity for
    22  procurement matters. A request for proposals issued under this
    23  subsection shall include the following:
    24         (1)  The minimum scope and content of the information to
    25     be provided by the respondent.
    26         (2)  The factors or criteria that will be used by the
    27     approving body or bodies in evaluating the proposals and the
    28     deadline for submitting the proposal.
    29         (3)  A statement concerning the scope and location of the
    30     proposed project.
    20070S1158B1547                 - 10 -     

     1         (4)  A statement concerning any other information that
     2     the approving body or bodies may consider in evaluating the
     3     proposals.
     4         (5)  A statement indicating that if clarification is
     5     needed in the evaluation of the proposals, the proprietary
     6     public entity, together with the Transportation Commission if
     7     its approval is required, may negotiate specific provisions
     8     with the prospective authorized development entity that
     9     submitted the proposal pursuant to the request for proposals.
    10     (b)  Unsolicited proposals.--A proprietary public entity may
    11  entertain and accept for review unsolicited proposals submitted
    12  by public or private entities for a qualifying transportation
    13  project. To the extent a proposal is subject to Transportation
    14  Commission review and approval pursuant to section 9104(a), the
    15  proposal shall also be submitted to the Transportation
    16  Commission. For proposals not subject to Transportation
    17  Commission approval, proprietary public entities may establish
    18  rules and procedures for accepting unsolicited proposals and may
    19  set forth the information required to be included in unsolicited
    20  proposals submitted by public or private entities. The
    21  Transportation Commission shall be responsible for establishing
    22  rules and procedures for unsolicited proposals subject to its
    23  approval, which shall include a review and response period not
    24  exceeding 135 days from receipt of the unsolicited proposal for
    25  any proposal with an estimated cost of construction greater than
    26  $50,000,000. If an unsolicited proposal is deemed to be in
    27  compliance with the rules and procedures as established by the
    28  appropriate approving body and if the public entity or entities
    29  so desire to pursue the proposed qualifying transportation
    30  project, the proprietary public entity, jointly with the
    20070S1158B1547                 - 11 -     

     1  Transportation Commission if its approval is required, must
     2  publish a request for and receive competing proposals in
     3  accordance with subsection (a).
     4     (c)  Discussions and negotiations with proposing entities.--A
     5  proprietary public entity, and the Transportation Commission
     6  where its approval is required, may conduct discussions and
     7  negotiations with public or private entities which have
     8  submitted solicited or unsolicited proposals for the purpose of
     9  clarification to assure full understanding of the proposals or
    10  the responsiveness of solicited proposals to solicitation
    11  requirements.
    12     (d)  Design build development; Separations Act
    13  inapplicable.--Notwithstanding any other provision of law to the
    14  contrary:
    15         (1)  any proposal made pursuant to this chapter may
    16     provide for the design build mode of infrastructure
    17     development; and
    18         (2)  in no event shall an authorized development entity
    19     or entities be subject to the requirements of the Separations
    20     Act in connection with a transportation development agreement
    21     authorized pursuant to this chapter.
    22     (e)  Federal credit assistance.--The approving body or bodies
    23  and affected local jurisdictions may apply for, execute or
    24  endorse applications by prospective authorized development
    25  entities to obtain Federal credit assistance for a qualifying
    26  transportation project.
    27     (f)  Adverse interests of proposing private entity.--
    28         (1)  Except as provided in paragraph (2), a private
    29     entity which is a State advisor or State consultant for the
    30     Transportation Commission, the department, the Pennsylvania
    20070S1158B1547                 - 12 -     

     1     Turnpike Commission or any other proprietary public entity
     2     shall not be deemed to be in violation of the State Adverse
     3     Interest Act if the private entity:
     4             (i)  prepares or submits a proposal or a response to
     5         a request for proposals under this section;
     6             (ii)  negotiates or enters into a transportation
     7         development agreement; or
     8             (iii)  engages in other activities in furtherance of
     9         the provisions or purposes of this chapter.
    10         (2)  A private entity which submits an unsolicited
    11     proposal or a response to a request for proposals shall be
    12     prohibited from providing advice to the Transportation
    13     Commission, the department, the Pennsylvania Turnpike
    14     Commission or a proprietary public entity on its proposal,
    15     any competing proposal or a request for proposals for which
    16     it has submitted a response.
    17     (g)  Fees.--The approving body or bodies may require that a
    18  nonrefundable fee accompany any solicited or unsolicited
    19  proposal submitted pursuant to this section to cover all or part
    20  of the costs of processing, reviewing and evaluating the
    21  proposal.
    22     (h)  Confidentiality of records.--To encourage public and
    23  private entities to submit proposals under subsections (a) and
    24  (b), the following information shall be considered confidential,
    25  and shall not be considered a public record subject to
    26  disclosure, public inspection or copying under the Right-to-Know
    27  Law, or any other act, until a final transportation development
    28  agreement for a proposed qualifying transportation project is
    29  entered into:
    30         (1)  All or part of a proposal, whether solicited or
    20070S1158B1547                 - 13 -     

     1     unsolicited, submitted by a public or private entity or any
     2     partnership of the entities for a proposed qualifying
     3     transportation project, except information regarding the
     4     scope, location and limits of the project and information
     5     pertaining to a public or private entity's qualifications,
     6     experience, technical competence and capability to develop
     7     the project.
     8         (2)  Information and records created during any
     9     discussions or negotiations arising from the process as
    10     described in subsection (c).
    11     (i)  Disclosure of records.--Notwithstanding subsection (h),
    12  after a transportation development agreement has been entered
    13  into, the entire selected proposal shall be considered a public
    14  record for purposes of disclosure under the Right-to-Know Law.
    15  Promptly after a transportation development agreement has been
    16  entered into, the approving body or bodies shall also make
    17  available for inspection and copying by the public a summary of
    18  the terms of the selected proposal and a written explanation of
    19  the basis upon which the selection was made. Proprietary
    20  information contained in proposals not selected and records of
    21  negotiations with private entities not selected shall continue
    22  to be exempt from public disclosure.
    23  § 9106.  Review and selection of proposals.
    24     (a)  Timing of review.--For proposals subject to its
    25  approval, the Transportation Commission by published regulations
    26  shall promulgate procedures and guidelines that establish the
    27  process for the review and selection of a proposal submitted
    28  pursuant to section 9105(a) and (b) (relating to proposals for
    29  transportation development agreements). The guidelines shall
    30  establish:
    20070S1158B1547                 - 14 -     

     1         (1)  a specific schedule for the timing of the review of
     2     the proposals by the approving body or bodies designed with a
     3     high priority placed upon a review schedule requiring less
     4     than 135 days;
     5         (2)  a process for alteration of that schedule if the
     6     approving body or bodies deem that changes are necessary
     7     because of the scope or complexity of proposals received; and
     8         (3)  the type and amount of information that is necessary
     9     for adequate review of proposals. A proprietary public entity
    10     shall promulgate its own procedures and guidelines for the
    11     review and selection of proposals which do not require
    12     Transportation Commission approval.
    13     (b)  Asset valuation.--In evaluating any submitted proposal,
    14  the approving body or bodies may rely on internal reports
    15  prepared by staff familiar with the operation of similar
    16  transportation facilities or may engage the services of the
    17  private consultants, engineers and other experts as the
    18  approving body or bodies determine are necessary or desirable
    19  for the purposes of performing the evaluations. As part of each
    20  evaluation of any submitted proposal, the approving body or
    21  bodies shall be required to obtain a financial and valuation
    22  assessment with respect to the proposed qualifying
    23  transportation project from a qualified independent advisor with
    24  experience and expertise with similar transportation facilities.
    25     (c)  Factors for review and selection of proposals.--The
    26  appropriate approving body or bodies may consider the following
    27  factors in reviewing and selecting a proposal to enter into a
    28  transportation development agreement:
    29         (1)  the ability of the qualifying transportation project
    30     to improve safety, reduce congestion, increase capacity and
    20070S1158B1547                 - 15 -     

     1     promote economic growth;
     2         (2)  the compatibility of the proposal with existing
     3     local or regional land use plans or the commitment of local
     4     communities to approve plans in preparation for the proposed
     5     project;
     6         (3)  the proposed cost of and financial plan for the
     7     qualifying transportation project;
     8         (4)  the general reputation, qualifications, industry
     9     experience and financial capacity of the entity or entities
    10     submitting the proposal;
    11         (5)  the proposed design, operation and feasibility of
    12     the qualifying transportation project;
    13         (6)  comments from local citizens and affected local
    14     jurisdictions;
    15         (7)  benefits to the public;
    16         (8)  the safety record of the entity or entities
    17     submitting the proposal; and
    18         (9)  other criteria that the approving body or bodies
    19     deem appropriate.
    20  § 9107.  Affected local jurisdictions.
    21     The Transportation Commission by published regulations shall
    22  promulgate procedures and guidelines that establish a process in
    23  which affected local jurisdictions receive notice of a proposed
    24  qualifying transportation project and have an opportunity to
    25  provide input regarding the project before a transportation
    26  development agreement is executed. For proposed qualifying
    27  transportation projects which do not require approval of the
    28  Transportation Commission under section 9104(a) (relating to
    29  transportation development agreements), the proprietary public
    30  entity shall promulgate its own procedures and guidelines by
    20070S1158B1547                 - 16 -     

     1  which affected local jurisdictions receive notice of a proposed
     2  qualifying transportation project and have an opportunity to
     3  provide input prior to the execution of a transportation
     4  development agreement.
     5  § 9108.  Terms and conditions of transportation development
     6             agreements.
     7     (a)  Proprietary public entity and authorized development
     8  entity negotiations.--Except as otherwise expressly provided in
     9  section 9105 (relating to proposals for transportation
    10  development agreements) and this section, a proprietary public
    11  entity may enter into a transportation development agreement
    12  with an authorized development entity or entities without regard
    13  to the provisions of 62 Pa.C.S. Pt. 1 (relating to Commonwealth
    14  Procurement Code). The proprietary public entity and authorized
    15  development entity or entities are expressly authorized to
    16  negotiate the provisions of a transportation development
    17  agreement.
    18     (b)  Required provisions.--A transportation development
    19  agreement entered into under this chapter shall provide for the
    20  following:
    21         (1)  a process by which the authorized development entity
    22     or entities implements, sets and adjusts any user fees on any
    23     transportation facility;
    24         (2)  the methodologies, indices or other factors for the
    25     setting and adjusting of user fees;
    26         (3)  the original term of the transportation development
    27     agreement, which may not exceed 50 years;
    28         (4)  dates for the beginning and completion of
    29     construction of or improvements to the qualifying
    30     transportation project;
    20070S1158B1547                 - 17 -     

     1         (5)  the transportation facility acquired or constructed
     2     pursuant to a transportation development agreement is public
     3     property that is leased to the authorized development entity
     4     and belongs to the proprietary public entity;
     5         (6)  that upon termination of the transportation
     6     development agreement, the transportation facility must be in
     7     a state of proper maintenance and repair and shall be
     8     returned to the proprietary public entity in satisfactory
     9     condition at no further cost to the public entity;
    10         (7)  maintenance of a policy or policies of liability
    11     insurance, copies of which shall be filed with the
    12     proprietary public entity accompanied by proofs of coverage,
    13     or self insurance, each in form and amount satisfactory to
    14     the proprietary public entity and reasonably sufficient to
    15     insure coverage of tort liability to the public and employees
    16     and to enable the continued operation of the transportation
    17     facility; and
    18         (8)  that the authorized development entity shall comply
    19     with the act of August 15, 1961 (P.L.987, No.442), known as
    20     the Pennsylvania Prevailing Wage Act, and 62 Pa.C.S. § 107
    21     (relating to reciprocal limitations).
    22  § 9109.  Material default; remedies.
    23     (a)  General rule.--Upon the occurrence and during the
    24  continuation of a material default of a transportation
    25  development agreement by an authorized development entity or
    26  entities, the approving body or bodies may:
    27         (1)  Elect to take over the transportation facility which
    28     is the subject of the transportation development agreement,
    29     including the succession of all right, title and interest in
    30     the transportation facility, subject to any liens on revenues
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     1     previously granted by the authorized development entity or
     2     entities.
     3         (2)  Terminate the transportation development agreement
     4     and exercise any other rights and remedies that may be
     5     available.
     6     (b)  Takeover.--In the event that the approving body or
     7  bodies elect to take over a transportation facility under
     8  subsection (a), the approving body or bodies:
     9         (1)  Shall collect and pay any revenues that are subject
    10     to lien to satisfy any obligation.
    11         (2)  May develop and operate the transportation facility,
    12     impose user fees for the use of the transportation facility
    13     and comply with any service contracts.
    14         (3)  May solicit proposals for the maintenance and
    15     operation of the transportation facility under section 9105
    16     (relating to proposals for transportation development
    17     agreements).
    18  § 9110.  Financing qualifying transportation projects.
    19     (a)  User fees.--
    20         (1)  Each transportation development agreement shall
    21     authorize the authorized development entity or entities to
    22     impose user fees for use of the transportation facility.
    23     Unless specifically prohibited in the transportation
    24     development agreement, the authorization shall permit the
    25     imposition of user fees on transportation facilities not
    26     currently subject to user fees, subject to compliance with
    27     applicable Federal and State law and approval by the
    28     Transportation Commission.
    29         (2)  The transportation development agreement may
    30     authorize the authorized development entity or entities to
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     1     collect tolls or user fees through both conventional methods
     2     and nonconventional methods, including, but not limited to,
     3     automatic vehicle identification systems, electronic toll
     4     collection systems and, to the extent permitted by law,
     5     video-based toll-collection enforcement.
     6         (3)  A maximum rate of return on investment shall be
     7     negotiated by the proprietary public entity and the
     8     authorized development entity or entities and stated in the
     9     transportation development agreement.
    10         (4)  After expiration of the original term of the
    11     transportation development agreement, the proprietary public
    12     entity may continue to charge user fees for the use of the
    13     transportation facility.
    14         (5)  User fees under a transportation development
    15     agreement shall generally be uniform for similar persons and
    16     vehicles traveling under like conditions, except as may be
    17     required to mitigate congestion on and preserve capacity of
    18     the transportation facility which is the subject of the
    19     transportation development agreement.
    20     (b)  Bonding authority.--A proprietary public entity or
    21  authorized development entity or entities may authorize the
    22  issuance of debt, equity or other securities or obligations to
    23  pay all or part of the costs of a qualifying transportation
    24  project and may secure any such financing with a pledge of,
    25  security interest in or lien on any of the user fees charged and
    26  collected for the use of the transportation facility. However,
    27  any bonds, debt, other securities or other financing issued for
    28  the purposes of this chapter shall be limited obligations of the
    29  proprietary public entity or authorized development entity or
    30  entities and shall not be considered to constitute a debt of the
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     1  Commonwealth or any political subdivision thereof or a pledge of
     2  the full faith and credit of the Commonwealth or any political
     3  subdivision thereof.
     4     (c)  Limited recourse bonds backed by pledge of portion of
     5  Motor License Fund revenues.--(Reserved).
     6  § 9111.  Power of eminent domain.
     7     At the request of an authorized development entity or
     8  entities, the proprietary public entity or an affected local
     9  jurisdiction otherwise possessing the power of eminent domain
    10  may exercise that power for the purpose of acquiring any real
    11  property or interests therein deemed necessary to advance the
    12  development or operation of a qualifying transportation project.
    13  Any amounts payable in any such eminent domain proceeding may be
    14  paid by the proprietary public entity or the authorized
    15  development entity or entities.
    16  § 9112.  Police powers; motor vehicle laws.
    17     (a)  Powers and jurisdiction.--All law enforcement officers
    18  of the Commonwealth and each affected local jurisdiction shall
    19  have the same powers and jurisdiction within the limits of a
    20  qualifying transportation project as they have in their
    21  respective areas of jurisdiction, and law enforcement officers
    22  shall have access to the qualifying transportation project at
    23  any time for the purpose of exercising their law enforcement
    24  powers and jurisdiction.
    25     (b)  Enforcement of traffic laws.--To the extent the
    26  qualifying transportation project includes a highway, bridge,
    27  tunnel, overpass or similar transportation facility for motor
    28  vehicles, the traffic and motor vehicle laws of this
    29  Commonwealth or, if applicable, any local jurisdiction shall be
    30  the same as those applying to conduct on similar transportation
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     1  facilities in the Commonwealth or the local jurisdiction.
     2     (c)  Payment of law enforcement costs.--The authorized
     3  development entity or entities shall be responsible for the
     4  payment of all costs associated with the provision of law
     5  enforcement services pursuant to subsections (a) and (b) within
     6  the limits of a qualifying transportation project.
     7     (d)  Fines.--Fines imposed by law enforcement officers for
     8  violations occurring within the limits of a qualifying
     9  transportation project shall be imposed, collected, distributed
    10  and governed as otherwise provided by applicable law.
    11  § 9113.  Taxation of authorized development entity or entities.
    12     (a)  General rule.--To the extent that revenues or user fees
    13  received by an authorized development entity or entities are
    14  subject to any tax imposed by a political subdivision prior to
    15  the effective date of this chapter, the revenues or user fees
    16  shall continue to be subject to the tax and to future increases
    17  in the rate of the tax.
    18     (b)  New taxation barred.--After the effective date of this
    19  chapter, no new tax shall be imposed by a political subdivision
    20  on the revenues or user fees received by an authorized
    21  development entity or entities.
    22     (c)  Realty transfer tax.--No transportation development
    23  agreement, lease, concession, franchise or other contract
    24  involving real property of a qualifying transportation project
    25  shall be subject to any Commonwealth or local realty transfer
    26  tax imposed under the act of December 31, 1965 (P.L.1257,
    27  No.511), known as The Local Tax Enabling Act, the act of March
    28  4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, or
    29  a successor statute.
    30     (d)  Property.--Property used in connection with a qualifying
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     1  transportation project shall be considered public property and
     2  is exempt from ad valorem property taxes and special assessments
     3  levied against property by the Commonwealth or any political
     4  subdivision.
     5  § 9114.  Pennsylvania Transportation Development Trust Fund.
     6     (a)  Establishment of fund.--The Pennsylvania Transportation
     7  Development Trust Fund is hereby established separate and
     8  distinct from the General Fund of the Commonwealth. Interest
     9  earned on moneys held in the fund shall be credited to the fund.
    10  The Transportation Commission shall hold, administer and manage
    11  the fund, and expenses of administering the fund shall be paid
    12  from money in the fund.
    13     (b)  Separate accounts.--Within the fund, separate accounts
    14  and subaccounts may be established.
    15     (c)  Deposits.--Subject to the provisions of a transportation
    16  development agreement, the following moneys may be deposited
    17  into the fund:
    18         (1)  Payments received from an authorized development
    19     entity or entities under a transportation development
    20     agreement.
    21         (2)  Revenues received from a qualifying transportation
    22     project pursuant to a transportation development agreement
    23     with an authorized development entity or entities.
    24         (3)  Excess earnings over the negotiated maximum rate of
    25     return for an authorized development entity or entities in a
    26     transportation development agreement.
    27         (4)  Surcharges or other service fees or user fees which
    28     may be imposed or levied by the Commonwealth on passenger or
    29     commercial travel.
    30         (5)  Appropriations, if any, made by the General
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     1     Assembly.
     2         (6)  Interest, premiums, gains or other earnings on the
     3     fund.
     4         (7)  Any other moneys from any sources, public or
     5     private, that are done by donation, grant, contract, law or
     6     other means transferred, allocated or appropriated to the
     7     fund.
     8     (d)  Permitted uses.--
     9         (1)  The fund shall be a separate trust fund to be
    10     appropriated and used by the Transportation Commission, upon
    11     majority vote thereof, solely for the operation and
    12     development of transportation facilities wholly or partly
    13     within this Commonwealth. Included as a permitted use of fund
    14     moneys is the funding of regional mobility authorities
    15     designated by the Transportation Commission under section
    16     9115 (relating to regional mobility account, etc.).
    17         (2)  Money may not be transferred, assigned or otherwise
    18     removed from the fund except by the Transportation Commission
    19     and not by the General Assembly or any other agency,
    20     authority or other political subdivision of the Commonwealth.
    21         (3)  Money in the fund at the end of the fiscal year
    22     shall not revert to the General Fund.
    23  § 9115.  Regional mobility account, etc.
    24     (Reserved).
    25  § 9116.  Regional mobility authority.
    26     A regional mobility authority shall be eligible to receive
    27  transportation development revenues directly from the fund or
    28  from a regional mobility fund. An existing local governmental
    29  entity shall be eligible for designation as a regional mobility
    30  authority upon application to the Transportation Commission.
    20070S1158B1547                 - 24 -     

     1  § 9117.  Turnpike lease restricted.
     2     The Pennsylvania Turnpike, its additions and lease properties
     3  may not be subject to a transfer of oversight responsibilities
     4  through a lease, sale or other agreement unless specific
     5  authority is granted through an act of law passed by a majority
     6  of members of the General Assembly. This section shall not
     7  restrict the ability of the Pennsylvania Turnpike Commission or
     8  the Transportation Commission to consider and approve
     9  partnership agreements which do not require a transfer of
    10  operational oversight from the Pennsylvania Turnpike Commission.
    11     Section 2.  This act shall take effect in 60 days.













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