THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY TURZAI, MUSTIO, BEAR, BENNINGHOFF, BOYD, CAUSER, CHRISTIANA, DENLINGER, DUNBAR, ELLIS, EVANKOVICH, EVERETT, FLECK, GABLER, GEIST, GILLEN, GILLESPIE, GRELL, GROVE, HESS, HICKERNELL, HUTCHINSON, KAUFFMAN, KNOWLES, KRIEGER, MAJOR, MARSHALL, METCALFE, METZGAR, MILLER, MOUL, MURT, PERRY, PYLE, RAPP, REESE, REICHLEY, ROAE, SACCONE, SCAVELLO, SCHRODER, SONNEY, STEVENSON, SWANGER AND VULAKOVICH, APRIL 26, 2011

REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, APRIL 26, 2011  

AN ACT

Amending the act of April 6, 1956 (1955 P.L.1414, No.465),

entitled, as amended, "An act to promote the welfare of the

people of this Commonwealth; creating Port Authorities to

function in counties of the second class as bodies corporate

and politic, with power to plan, acquire, construct, maintain

and operate facilities and projects for the improvement and

development of the port district and to borrow money and

issue bonds therefor; providing for the payment of such bonds

and prescribing the rights of the holders thereof; conferring

the right of eminent domain on the authorities; authorizing

the authorities to enter into contracts with and to accept

grants from the Federal government or any agency thereof; and

conferring exclusive jurisdiction on certain courts over

rates and services; and authorizing the authorities to

collect tolls, fares, fees, rentals and charges for the use

of facilities; defining the authorities' powers and duties,

and defining the port districts; granting Port Authorities

the exclusive right to engage in the business of owning,

operating, and maintaining a transportation system for the

transportation of persons in counties of the second class,

providing, when necessary, for extension of transportation

systems into adjoining counties and outside of said counties

as provided in the act; limiting the jurisdiction of the

Public Utility Commission over Port Authorities; authorizing

municipalities to make loans and grants and to transfer

existing facilities; authorizing Port Authorities to enter

into contracts with and to accept grants from State and local

governments or agencies thereof; exempting the property and

facilities of such Port Authorities from taxation and

limiting the time to commence civil action against said

Authorities," further providing for title, for legislative

findings, for definitions, for port authorities, for board,

for eminent domain, for conveyance and for integrated

operation; providing for exclusive jurisdiction and for

report; and making editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The title of the act of April 6, 1956 (1955

P.L.1414, No.465), known as the Second Class County Port

Authority Act, amended October 7, 1959 (P.L.1266, No.429), is

amended to read:

AN ACT

To promote the welfare of the people of this Commonwealth;

creating Port Authorities to function in counties of the

second class as bodies corporate and politic, with power to

plan, acquire, construct, maintain and operate facilities and

projects for the improvement and development of the port

district and to borrow money and issue bonds therefor;

providing for the payment of such bonds and prescribing the

rights of the holders thereof; conferring the right of

eminent domain on the authorities; authorizing the

authorities to enter into contracts with and to accept grants

from the Federal government or any agency thereof; and

conferring exclusive jurisdiction on certain courts over

rates and services; and authorizing the authorities to

collect tolls, fares, fees, rentals and charges for the use

of facilities; defining the authorities' powers and duties,

and defining the port districts; granting Port Authorities

the [exclusive] right to engage in the business of owning,

operating, and maintaining a transportation system for the

transportation of persons in counties of the second class,

providing, when necessary, for extension of transportation

systems into adjoining counties and outside of said counties

as provided in the act; limiting the jurisdiction of the

Public Utility Commission over Port Authorities; authorizing

municipalities to make loans and grants and to transfer

existing facilities; authorizing Port Authorities to enter

into contracts with and to accept grants from State and local

governments or agencies thereof; exempting the property and

facilities of such Port Authorities from taxation and

limiting the time to commence civil action against said

Authorities.

Section 2.  Section 1 of the act, amended October 7, 1959

(P.L.1266, No.429) and December 30, 1970 (P.L.953, No.300), is

amended to read:

Section 1.  It is hereby determined and declared as a matter

of legislative finding:

(1)  That a greater utilization of the rivers in the

Commonwealth is necessary for the increased commerce and

prosperity of the people of the Commonwealth.

(2)  The increased commerce and prosperity of the people of

the Commonwealth require, in counties of the second class, more

effective coordination of the combined facilities of water,

rail, air and highway.

(3)  That the expanding industrial activities of the

Commonwealth require the planning, designing, construction,

erection and operation of port facilities in counties of the

second class.

(4)  That property values in counties of the second class are

threatened with irreparable loss for the lack of port facilities

available to industry.

(5)  The crisis in industrial transportation, which threatens

the welfare of the Commonwealth, can be reduced by providing

adequate port facilities.

(6)  That in counties of the second class there has been and

is an ever increasing growth in the industrial, commercial and

residential areas, requiring adequate and modern transportation 

facilities [for the mass transportation of passengers].

(7)  That the existing transportation facilities are and have

been unable to adequately serve the growing areas in counties of

the second class, to the detriment of the health, safety and

general welfare of the inhabitants.

(8)  That the well-being and economic health of the counties

of the second class require [an integrated system of mass

passenger transportation] a modern transportation system.

(9)  That it is desirable that [the] a public transportation

system be [combined, improved, extended and supplemented]

established by the creation of [authorities] an authority as

herein provided.

(10)  That [the establishment of a port authority will

promote the public safety, convenience and welfare] it is

desirable that a port authority be established by the creation

of an authority as provided in this act.

(11)  That it is intended that the authority created under

this act cooperate with [and/or acquire existing transportation

facilities] common carriers, that private enterprise and

government may mutually provide adequate port facilities and

transportation services for the convenience of the public.

(12)  That it is intended that [the authorities] an authority 

created hereunder will cooperate with all municipalities and

other public bodies in which [they operate] it operates so that

the [mass passenger] public transportation system may best serve

the interests of the residents thereof.

Therefore, it is hereby declared to be the policy of the

Commonwealth of Pennsylvania to promote the safety and welfare

of the inhabitants thereof by the creation of a body corporate

and politic for each second class county, to be known as The

Port Authority of (insert name of county), which shall exist and

operate for the purposes contained in this act. Such purposes

are hereby declared to be public uses for which public money may

be spent and private property may be acquired by the exercise of

the power of eminent domain. 

Section 3.  Section 2 of the act, amended October 7, 1959

(P.L.1266, No.429), September 16, 1961 (P.L.1361, No.605) and

December 30, 1970 (P.L.953, No.300), is amended to read:

Section 2.  As used in this act:

(1)  The term "authority" shall mean any body, politic and

corporate, created by this act.

(2)  The term "port district" shall mean all the territory

within a second class county.

(3)  The term "member" shall mean a member of the governing

body of an authority.

(4)  The term "board" shall mean the governing body of an

authority.

(5)  The term "bonds" shall mean and include the notes,

bonds, refunding bonds, and other evidences of indebtedness or

obligations which the authority is authorized to issue, pursuant

to section five of this act.

(6)  The term "construction" shall mean and include

acquisition and construction, and the term "to construct" shall

mean and include to acquire and to construct all in such manner

as may be deemed desirable.

(7)  The term "municipality" shall mean any county, city,

town, borough or township of the Commonwealth of Pennsylvania,

or any authority organized under any law of the Commonwealth of

Pennsylvania.

(8)  The term "Federal agency" shall mean and include the

United States of America, the President of the United States and

any department or corporation, agency or instrumentality,

heretofore or hereafter created, designated or established by

the United States of America.

(9)  The term "improvement" shall mean and include extension,

enlargement and improvement, and the term "to improve" shall

mean and include to extend, to enlarge and to improve all in

such manner as shall be deemed desirable.

(10)  The term "persons" shall mean and include natural

persons.

(11)  The term "port terminal" shall include any marine,

motor truck, railroad and air terminal, also any coal, grain,

bulk liquids and lumber terminal and any union, freight and

other terminals, used or to be used, in connection with the

transportation or transfer of freight and equipment, materials

and supplies.

(12)  The term "port facility" shall include all real and

personal property used in the operation of a port terminal,

including, but without being limited to, wharves, piers, slips,

ferries, docks, drydocks, ship repair yards, bulkheads, dock

walls, basins, carfloats, float-bridges, dredging equipment,

radio receiving and sending stations, grain or other storage

elevators, warehouses, cold storage, tracks, yards, sheds,

switches, connections, overhead appliances, bunker coal, oil and

fresh water stations, railroads, motor trucks, floating

elevators, airports, barges, scows or harbor craft of any kind,

markets and every kind of terminal storage or supply depot, now

in use or hereafter designed for use, to facilitate

transportation and for the handling, storage, loading or

unloading of freight at terminals, and equipment, materials and

supplies therefor.

(13)  The term "transportation system" shall mean all

property, real and personal, useful for the transportation of

passengers for hire, including but not limited to power plants,

substations, terminals, garages, bridges, tunnels, subways,

monorails, railroad motive power, trains, railroad passenger

cars, and equipment, belt conveyors, inclines, car barns, street

cars, buses, rails, lines, poles, wires, off-street parking

facilities, as well as the franchises, rights and licenses

therefor, including [rights to provide], but not limited to, the

right to provide, directly or through contract, transportation

or transportation services for any elderly, handicapped or

Americans with Disabilities Act (ADA)-eligible persons or group

and party services: Provided, That such term shall not include

taxicabs or bus companies, the main purpose of which is the

transportation of children to and from school.

(14)  The term "facility" shall mean port facility and

transportation system.

(15)  The term "local authorities" shall mean the officers of

a municipality, elected or appointed, authorized to consent to

the use of the municipality's streets, highways, bridges and

tunnels and to enter into agreements relative to such use with

the port authority.

(16)  The term "Public Utility Commission" shall mean the

Public Utility Commission of the Commonwealth of Pennsylvania,

created by the act of March 31, 1937 (P.L.160).

(17)  The term "service area" shall mean the entire county

incorporating the authority and those portions of adjacent

counties necessary to permit the authority (i) to acquire

[existing] a transportation [systems, eighty per centum of whose

revenue vehicle miles for the preceding calendar year are

operated within the incorporating county] system, at a price and

in a manner deemed reasonable by an authority; (ii) to acquire

by purchase only and not by exercise of the right of eminent

domain other existing transportation systems or parts thereof

which, in the authority's sole discretion, are required for the

establishment of [an integrated] a system; (iii) to establish

transit service between points in the county incorporating the

authority and points in the adjacent counties where no such

service is at the time being rendered and which service the

authority, in its sole discretion, has determined to be

required: Provided, however, That no such service shall be

established without the consent of the affected adjacent county

nor without participation of such county in the payment of the

cost of establishing and maintaining such service; and (iv) to

establish rapid transit facilities over jointly used or

exclusive fixed rights of way.

Section 4.  Section 3 of the act, amended October 7, 1959

(P.L.1266, No.429), December 30, 1970 (P.L.953, No.300) and July

9, 1992 (P.L.700, No.104) and repealed in part June 3, 1971

(P.L.118, No.6), is amended to read:

Section 3.  (a)  There [are hereby created bodies] is created

in each county of the second class a body corporate and politic

[in counties of the second class], to be known as Port Authority

of (insert name of county), which shall [constitute public

bodies corporate and politic; exercising] exercise the public

powers of the Commonwealth as an agency thereof. [Each

authority] An authority created under this section shall be for

the purpose of planning, acquiring, holding, constructing,

improving, maintaining and operating, owning, leasing, either as

lessor or lessee, port facilities within the port district of

the county by which it is incorporated, and a transportation

system in the county by which it is incorporated and outside of

the county to the extent necessary for (i) the establishment of

[an integrated] a transportation system; (ii) the establishment

of additional transit service where none at the time is being

otherwise rendered; (iii) the establishment of rapid transit

facilities over jointly used or exclusive fixed rights of way

and (iv) the rendering of [all] group and party services [which

can be provided by transportation systems subject to acquisition

under this act pursuant to certificates of public convenience

issued them by the Pennsylvania Public Utility Commission].

(b)  [Each authority is hereby granted and] An authority 

shall have and may exercise all powers necessary or convenient

for the carrying out of the aforesaid purposes, including but

without limiting the generality of the foregoing, the following

rights or powers:

(1)  To have perpetual existence.

(2)  To sue and be sued, implead and be impleaded, complain

and defend in all courts, to petition the Interstate Commerce

Commission (or like body) or join in any proceeding before any

such bodies or courts in any matter affecting the operation of

any project of the authority.

(3)  To adopt and use and alter at will a corporate seal.

(4)  To establish a principal office and such other office or

offices as may be necessary for the carrying on of its duties.

(5)  To acquire, purchase, hold, lease as lessee and use any

franchise, property, real, personal or mixed, tangible or

intangible, or any interest therein, necessary or desirable for

carrying out the purposes of the authority, and to sell, lease

as lessor, transfer and dispose of any property, or interest

therein, at any time, required by it. In exercising the power

granted by this subsection, the authority shall consider the

same value factors as provided in section 7 of this act in

determining compensation under the exercise of eminent domain.

(6)  To acquire by purchase, lease, or otherwise, and to

construct, improve, maintain, repair and operate facilities.

(6.1)  To construct, improve, maintain, repair and operate

high-occupancy vehicle lanes that are incorporated into and are

made part of an authority facility.

(7)  To make by-laws for the management and regulation of its

affairs.

(8)  To appoint officers, agents, employes and servants, to

serve at the pleasure of the board (except as may otherwise be

provided in collective bargaining agreements) and to prescribe

their duties and fix their compensation: Provided, however, That

the authority may bind itself by contract to employ an executive

director, a general manager or a combined executive director and

general manager and not more than five other senior executive

personnel but no such contract shall be for a period of more

than five years.

(9)  To fix, alter, charge and collect fares, rates, rentals

and other charges for its facilities by zones or otherwise at

reasonable rates to be determined exclusively by it, subject to

appeal, as hereinafter provided, for the purpose of providing

for the payment of the expenses of the authority, the

acquisition, construction, improvement, repair, maintenance and

operation of its facilities and properties, the payment of the

principal and interest on its obligations, and to comply fully

with the terms and provisions of any agreements made with the

purchasers or holders of any such obligations. The authority

shall determine, by itself exclusively, the facilities [to be

operated by it] and the services to be [available to the public]

operated by it. Any person questioning the reasonableness of any

rate or services fixed by an authority may bring suit against

the authority in the court of common pleas of the county

incorporating the authority. The court of common pleas shall

have exclusive jurisdiction to determine the reasonableness of

fares, rates and other charges or services fixed, altered,

charged or collected by an authority. The court shall make such

order as to fares, rates and other charges or services as to it

shall be just and proper.

(10)  To borrow money, make and issue negotiable notes,

bonds, refunding bonds and other evidences of indebtedness or

obligations of the authority, and to secure the payment of such

bonds, or any part thereof, by pledge or deed of trust of all or

any of its revenues, rentals and receipts, and to make such

agreements with the purchasers or holders of such bonds or with

others in connection with any such bonds, whether issued or to

be issued as the authority shall deem advisable and in general,

to provide for the security for said bonds and the rights of the

holders thereof.

(11)  To make contracts of every name and nature, and to

execute all instruments necessary or convenient for the carrying

on of its business. Without limiting the generality of the

foregoing, the authority is authorized to enter into contracts

for the purchase, lease, operation or management of facilities

subject to the jurisdiction of the Interstate Commerce

Commission.

(12)  Without limitation of the foregoing, to borrow money

and accept grants from and to enter into contracts, leases or

other transactions with any Federal agency, Commonwealth of

Pennsylvania, municipality or corporation.

(13)  To have the power of eminent domain.

(14)  To pledge, hypothecate, or otherwise encumber, all or

any of the revenues or receipts of the authority as security for

all or any of the obligations of the authority.

(15)  To do all acts and things necessary for the promotion

of its business, and the general welfare of the authority to

carry out the powers granted to it by this act or any other

acts.

(16)  To enter into contracts with the Commonwealth of

Pennsylvania, municipalities or corporations, on such terms as

the authority shall deem proper for the use of any facility of

the authority, and fixing the amount to be paid therefor.

(17)  To enter into contracts of group insurance for the

benefit of its employes, or to continue in existence any

existing insurance and/or pension or retirement system and/or

any other employe benefit arrangement covering employes of an

acquired [existing] transportation system, and/or to set up a

retirement or pension fund or any other employe benefit

arrangement for such employes.

(18)  An authority shall have no power, at any time or in any

manner, to pledge the credit or taxing power of the Commonwealth

of Pennsylvania or any political subdivision, nor shall any of

its obligations be deemed to be obligations of the Commonwealth

of Pennsylvania or of any of its political subdivisions, nor

shall the Commonwealth of Pennsylvania or any political

subdivision thereof be liable for the payment of principal or

interest on such obligations.

(19)  Private rights and property in the beds of existing

public highways vacated in order to facilitate the purposes of

the authority shall not be deemed destroyed or ousted by reason

of such vacation, but shall be acquired or relocated by the

authority in the same manner as other property.

(20)  To have the right to use any public road, street, way,

highway, bridge or tunnel for the operation of a transportation

system within the service area of its [integrated] system as set

forth in the authority's plan of integrated operation as

provided in section 13.1 hereof: Provided, That in the case of

street railway or trolley coach facilities or pole and wire

facilities or overhead structures, such right shall not be

exercised within the limits of any county, city, borough or

township, without the consent of the local authorities thereof

and/or the [State Highway] Department of Transportation, which

consent shall not be unreasonably withheld and cannot be

conditioned upon the payment of any bridge tolls or license

fees, notwithstanding any existing agreements with the

predecessor company or individual; and to enter into agreements

with and accept franchises and licenses from such cities,

boroughs and townships for such use.

(21)  To establish such carrier routes as it deems necessary

for the efficient operation of the transportation system owned

[or otherwise acquired] by it under the terms of this act,

subject to any limitations herein provided for; and to alter and

vary and discontinue such carrier routes at its discretion.

(22)  To self insure or otherwise provide for the insurance

of any property or operations of the authority against any risks

or hazards.

(23)  To lease property or contract for service, including

managerial and operating service, whenever it in its sole

discretion determine that it can more efficiently and

effectively serve the public by so doing, rather than conducting

its own operations with its own property or employes.

(24)  To form plans for the improvement of public mass

transportation in order to promote the economic development of

the service area in which the authority operates; [to make

recommendations concerning mass transportation facilities which

the authority does not own or operate;] to make recommendations

concerning throughways and arterial highway connections to the

[Department of Highways] department and to other appropriate

governmental bodies; and otherwise to cooperate with all such

governmental bodies.

(25)  To enter into agreements with any public utility

operating a railroad or any other public or private 

transportation facility or common carrier wholly or partially

located or providing transportation services within the service

area for the joint or exclusive use of any property of the

entity, the authority or the public utility or the establishment

of through routes over the rights of way of the entity, the 

public utility or the authority or the establishment of joint

fares and transfer of passengers.

(26)  To develop programs designed solely to advertise,

promote and stimulate the development and use of its port

facility and transportation system and to join and to authorize

its agents, employes and servants to join national and local

trade and professional organizations organized for the purpose

of promoting the betterment of port facilities and

transportation systems and the improvement of the efficiency of

persons connected with or employed by port facilities and

transportation systems.

(27)  Notwithstanding any other provision of law, to contract

with any third party for the allocation of liability for any and

all claims, actions, suits or damages, whether for compensatory

or punitive damages, arising against a third party or the

authority in connection with any accident or incident related to

the operations conducted by or on behalf of or authorized by the

authority or a third party, on property owned by the authority

or on property owned by a third party and adjacent to the

authority's property. If a third party asserts against the

authority any claim relating to liability that the authority,

pursuant to contract, has assumed, such claim may, to the extent

provided in this clause, result in the imposition of liability

on the authority, and the defense of sovereign immunity as

provided in 42 Pa.C.S. Ch. 85 Subch. B (relating to actions

against Commonwealth parties) shall not be raised by the

authority in connection therewith. The aggregate of liability

for all claims, actions, suits or damages, whether for

compensatory or punitive damages, that may be asserted against

and imposed upon such third party and which the authority,

pursuant to such contract, has assumed shall not exceed the

limits of the liability insurance coverage maintained by the

authority in connection with such assumed obligations, which

insurance coverage shall not be less than ten million dollars.

The authority shall be entitled to obtain and maintain insurance

coverage in amounts deemed by the authority to be necessary or

desirable and to name such third party as an additional named

insured on any insurance policies relating thereto.

Section 5.  Section 6 of the act, amended June 18, 1999

(P.L.72, No.11), is amended to read:

Section 6.  Subject to the provisions of section 6.1, the

powers of [the] an authority shall be exercised by a board,

composed of the number of members, not more than nine, [one of

whom shall at all times be a member of the county council

appointed by the county executive,] as shall be fixed by the

county council of [each county of the second class. The county

executive of each county of the second class] the county where

the authority is located. The county executive of that county 

shall appoint the members of the board, one of whom shall at all

times be a member of the county council, all of whom shall be

residents of such county and citizens of the United States,

whose terms of office shall commence on the date of appointment,

one member shall serve for one year, one for two years, one for

three years, and one for four years, and one for five years,

from the first day of January next succeeding the date of

approval of this act, and terms of other members shall be

staggered in a similar manner but in no instance shall exceed

five years. Thereafter, whenever a vacancy has occurred or is

about to occur by reason of the expiration of the term of any

member, the county executive shall appoint a member for a term

of five years to succeed the member whose term has expired or is

about to expire. Members shall hold office until their

successors have been appointed, and may succeed themselves. A

member shall receive such compensation for his services as the

county executive shall determine and shall be entitled to the

necessary expenses, including traveling expenses incurred in the

performance of his duties. Within ninety days after the creation

of the authority, the board shall meet and organize by electing

from their number a chairman, a vice chairman, and such other

officers as the board may determine. The board may employ a

secretary, an executive director, its own counsel and legal

staff and such technical experts and other agents and employes,

permanent or temporary, as it may require, and may determine the

qualifications and fix the compensation of such persons. Six

members of the board shall constitute a quorum for its meetings.

Members of the board shall not be liable personally on the bonds

or other obligations of the authority, and the rights of

creditors shall be solely against [such] the authority. The

board may delegate to one or more of its agents or employes such

of its powers as it shall deem necessary to carry out the

purposes of this act, subject always to the supervision and

control of the board. The board shall have full authority to

manage and operate the business of the authority and to

prescribe, amend and repeal by-laws, rules and regulations

governing the manner in which the business of the authority may

be conducted and the powers granted to it may be exercised and

embodied. Copies of such by-laws, rules and regulations shall be

filed with the county council of the county [incorporating the

authority]. A member may be removed for cause by the court of

common pleas of the county in which the authority is located

after having been provided with a copy of the charges against

the member for at least ten days and a full hearing by the

court.

If a vacancy occurs by reason of the death, resignation or

removal of a member, the county executive shall appoint a

successor to fill the unexpired term.

Section 6.  Section 7.1 of the act, added October 7, 1959

(P.L.1266, No.429), is amended to read:

Section 7.1.  [The] An authority shall exercise its power of

eminent domain in the manner prescribed by the provisions of

Article XXVI. of the act of July 28, 1953 (P.L.723), known as

the "Second Class County Code," except as such provisions are in

conflict with the provisions of this section: Provided, That no

property owned or used by the United States, the Commonwealth of

Pennsylvania, any political subdivision thereof, or any body

politic and corporate organized as an "authority" under any law

of the Commonwealth or by any agency of any of them, nor any

property used by a public utility other than a transportation

system, nor any common carrier subject to the jurisdiction of

the Interstate Commerce Commission or the Public Utility

Commission, nor any property used for burial purposes or places

of public worship, shall be taken under the right of eminent

domain.

In case the authority shall repeal any resolution passed or

discontinue any proceeding taken with respect to the exercise of

its right of eminent domain prior to the entry upon, taking,

appropriation or injury to any property, the authority shall not

thereafter be liable to pay any damages which have been or might

have been assessed, but all costs and expenses upon any

proceeding had thereon shall be paid by the authority together

with any actual damage, loss or injury sustained by reason of

such proceeding.

In ascertaining, assessing and determining the amount of

compensation or damages to be paid by the authority, the board

of viewers may determine every fact, matter or thing, which in

its judgment does or may have any bearing on the fair amount of

the compensation. The factors thus to be taken into account

shall include, among other things, the gross annual revenue, the

original cost of construction, with particular reference to the

amount expended in existing and useful permanent improvements,

with such consideration for the amount in market value of the

owner's bonds and stocks, if the owner be a corporation, as to

the board of viewers may seem just and fair; the probable

earning capacity of the property under particular rates

prescribed by statute or ordinance or other municipal contract

or fixed by any regulatory body; and for the items of

expenditures for obsolete equipment and construction as the

circumstances and historical development of the properties may

warrant. The reproduction cost of the property based upon the

fair average price of materials, property and labor, and the

development and going-concern value of such properties,

facilities, and franchises, any element of delay under these

proceedings, and other elements of value, shall be given such

weight by the board of viewers as may, in its judgment, be just

and right in each case, as in other matters involving the

valuation of properties and facilities devoted to the public

service and coming before the said board of viewers for

determination. The determination of the board of viewers shall

award compensation or damages to each owner separately, and, in

case any owner is also the lessee of the properties, facilities

and franchises of any other company whose properties, facilities

or franchises are acquired or to be acquired hereunder, the

total amount awarded with respect thereto shall be apportioned

between the owner or owners of such properties, facilities and

franchises and any person or persons, company or companies,

having an interest therein by virtue of any such lease or series

of leases, the purpose of this provision being that the gross

amount of damages or compensations, ascertained and determined

as hereinabove provided, shall be distributed among those

rightfully entitled thereto in such manner as may be just and

equitable, having in view their respective interests therein.

When the authority exercises its right of eminent domain, it

shall, prior to taking possession of the property, pay into the

court of common pleas of the county in which said authority is

[created] located in the manner to be provided by the rules of

court, a sum equal to seventy-five per centum (75%) of the

amount estimated by it as the damages which will result from

such exercise. Upon such payment into court, the authority shall

have the right to immediate possession of the property and the

authority shall be relieved of all obligation to see to the

application or distribution of said money paid into court. The

court shall direct the payment of said sum of money to the

person or persons entitled thereto upon petition and proof of

such entitlement and upon such conditions, including the filing

of a refunding bond, as the court shall, by general or special

rule, provide.

Any payments made pursuant to this act shall be credited upon

the award or verdict and final judgment, provided such award and

judgment is in a greater amount. Any payment made in excess of

the award and verdict and final judgment shall be refunded to

the authority. Detention damages and interest on the award of

damages shall be limited to the amount, if any, by which the

amount of money paid into court, as hereinabove required, is

less than the award or verdict and final judgment.

Section 7.  Section 13 of the act, amended March 20, 1963

(P.L.5, No.3) and December 30, 1970 (P.L.953, No.300), is

amended to read:

Section 13.  Any municipality or owner is hereby authorized

to sell, lease, lend, grant, transfer or convey to [the] an 

authority, with or without consideration, any facility or any

part or parts thereof, or any interest in real or personal

property which may be used by the authority in the construction,

improvement, maintenance or operation of any facility. Any

municipality is also authorized to transfer, sell, assign and

set over to the authority any contracts which may have been

awarded by such municipality for the construction of facilities

not begun, or if begun, not completed. Any county of the second

class is hereby empowered to issue general obligation or non-

debt revenue bonds for the purpose of providing funds for the

acquisition, construction or improvement of any facility. Any

county of the second class may and it is hereby authorized to

make grants or loans from current revenues or the proceeds of

general obligation bonds to the authority to assist in defraying

the costs of any demonstration, test or experimental projects,

and the costs of studies in preparation of a plan of integrated

operation and for the operation, maintenance and debt service of

any facility and to enter into long term agreements providing

for the payment of such grants.

Any county wherein any part of a transportation system [as]

established by an authority created under this act is operating

or is proposed to operate is hereby empowered (i) to issue

general obligation bonds for the purpose of providing funds for

the acquisition, construction or improvement of the

transportation system; (ii) to make grants or loans from current

revenues or the proceeds of general obligation bonds to the

authority to assist in defraying the cost of any demonstration

test or experimental projects and the cost of studies in

preparation of a plan of [integrated] operation and the

improvement of the transportation system and for the operation,

maintenance and debt service of the transportation system and to

enter into long term agreements with the authority and with one

or more other counties served by the transportation system

providing for the payment of such grants.

Section 8.  Section 13.1 of the act, amended or added October

7, 1959 (P.L.1266, No.429), March 20, 1963 (P.L.5, No.3) and

December 30, 1970 (P.L.953, No.300), is amended to read:

Section 13.1.  [The] An authority, immediately upon its

organization, shall commence its study of [an integrated] a 

system of [mass] transportation within the service area. Such

study shall include, but not be limited to the estimated cost of

acquisition of existing transportation systems, the development

of facilities, the estimates of revenues and the financial

feasibility of [an integrated] a system of [mass]

transportation. Thereafter, the authority shall prepare a plan

of [integrated] operation showing the service area and the

pattern of its [integrated] system. The plan of [integrated]

operation shall be submitted for approval to the [board of

county commissioners of the county incorporating the authority]

county council of the county where the authority is located, and

simultaneously, the authority shall submit to the [board of

county commissioners] county council the recommendation of the

authority on the plan of [integrated] operation, and a schedule

disclosing estimated cost of acquisition of existing

transportation systems, estimates of revenue and expenditures

for the proposed plan of [integrated] operation, and the

proposed method of financing the acquisition and the plan of

[integrated] operation. The [board of county commissioners]

county council shall advertise the fact that the plan of

[integrated] operation has been submitted and is available for

public inspection at least once each week for two consecutive

weeks in a newspaper of general circulation in the county where

the authority is located: Provided, That no action may be taken

by the [board of county commissioners] county council until the

plan of [integrated] operation has been on file in the office of

the county [commissioners] council and available for public

inspection for a period of at least thirty days following the

date of publication of the second notice. The [board of county

commissioners] county council may approve or reject the plan of

[integrated] operation as submitted or, at any time thereafter,

direct the authority to revise the original plan of [integrated]

operation. In the event of a revision of the original plan of

[integrated] operation, such revised plan of [integrated]

operation shall be resubmitted to the [board of county

commissioners] county council and shall be acted upon in the

same manner as herein provided in the case of the submission by

the authority of the original plan of [integrated] operation.

Prior to approving or rejecting the plan of [integrated]

operation or revised plan of [integrated] operation, the [board

of county commissioners] county council may submit the question

of approval of such plan or revised plan of [integrated]

operation for referendum at any general, municipal or primary

election. In the event of a referendum, the question shall be

submitted on the ballot or on voting machines in the manner

provided by the election laws of the Commonwealth and shall be

in substantially the following form:

The referendum on this question shall be governed in all

respects by the election laws of the Commonwealth in so far as

they are applicable. Upon final approval by the [board of county

commissioners] county council, the original or revised plan of

[integrated] operation shall be recorded in the office of the

recorder of deeds of the county or counties affected thereby and

a copy of said plan of [integrated] operation shall also be

filed with the [Pennsylvania] Public Utility Commission. The

authority shall, thereafter, have the right to make such changes

in the pattern of its [integrated] transportation system and its

service area as it may deem proper, subject to appeal to the

court of common pleas in the same manner as provided for in

clause (9) of subsection (b) of section 3 of this act, by

adopting an amendment to the plan of [integrated] operation or

service area and filing and recording the same in the office of

the recorder of deeds and with the [Pennsylvania] Public Utility

Commission as above provided. The authority shall not have power

to acquire by purchase, condemnation or otherwise, any existing

transportation systems, or engage in the operation of a

transportation system as provided under this act, until it has

met the requirements for recording and filing of the plan of

integrated operation as provided herein: Provided, however, That

the authority may enter into option agreements with any existing

transportation systems for the purchase, lease or operation

thereof, subject to the final approval of the plan of

[integrated] operation by the [board of county commissioners]

county council: Provided further, That nothing in this section,

including the foregoing proviso clause, shall prevent, limit,

restrict or interfere with in any way an undertaking or joining

by the authority of any demonstration, test or experimental

project relevant to, and necessary for, the establishment of an

integrated transportation system or of any demonstration, test

or experimental project that may be required, or advisable, to

establish the feasibility of [an integrated] a transportation

system.

Upon the recording of the plan of [integrated] operation, any

law to the contrary notwithstanding, the authority shall have

exclusive jurisdiction with respect to all matters regarding its

transportation system within the service area as set forth in

the plan of operation or as from time to time changed as in this

section provided[. The Public Utility Commission shall have no

authority to grant certificates of public convenience for a

transportation system within the service area of the authority

or for the establishment of group and party rights to operate

wholly within such service area. The Public Utility Commission

shall continue to have jurisdiction, except as otherwise

provided in this section, with respect to all matters regarding

those transportation systems and group and party rights to

operate into or out of said service area.

The authority shall have the exclusive right to operate a

transportation system within the service area as set forth in

the plan of integrated operation, except for those

transportation systems operating into the said service area from

points outside of said area, which companies shall have the

right to pick up and discharge passengers destined to and from

the territory outside of said area but not the right to pick up

and discharge passengers entirely within the service area. Said

excepted transportation systems by agreement with the authority

may arrange for the pick up and discharge of passengers within

the said service area when, in the opinion of the authority,

such privilege will serve the purpose for which the authority

was created. The authority may, also by agreement with an

existing transportation system now servicing the said service

area, permit a continuation of such services where, in the

opinion of the authority, such privilege will serve the purpose

for which the authority was created. In the event no such

agreement is entered into between the excepted transportation

systems and the authority prior to the authority commencing to

operate a mass transportation system in the service area, the

authority shall be liable for all direct and consequential

damages for any loss in value of the remaining portions of the

system arising from the loss of the right to pick up and

discharge passengers entirely within the service area.

The authority shall, within two years after approval by the

board of county commissioners and the recording and filing of

the plan of integrated operation in the office of the recorder

of deeds and with the Pennsylvania Public Utility Commission as

hereinabove provided, acquire by purchase, lease or eminent

domain, or shall enter into an operation contract with all

transportation systems operating entirely within the county in

which the authority is created or eighty per centum of whose

revenue vehicle miles for the preceding calendar year are

operated within said county, except those transportation systems

subject to the jurisdiction of the Interstate Commerce

Commission: Provided, That the court of common pleas of the

county in which such authority is created may, upon cause shown,

extend the two-year period hereinbefore mentioned: And

provided,]: Provided, That if the authority shall at any time

desire to abandon or change any portion of a transportation

system outside the territorial limits of the county

incorporating the authority, the approval for such abandonment

or change must be secured by the authority from the

[Pennsylvania] Public Utility Commission[: And provided further,

That all].

All group and party services provided by the authority

outside the service area under rights acquired by it pursuant to

this act shall be subject to the regulation by the

[Pennsylvania] Public Utility Commission.

Section 9.  The act is amended by adding sections to read:

Section 13.6.  Notwithstanding any other provision of this

act, the Public Utility Commission shall have sole and exclusive

jurisdiction over an entity other than an authority created

under this act which seeks to provide transportation services

within a service area if the transportation services would

otherwise be subject to the jurisdiction of the Public Utility

Commission.

Section 13.7.  Within one year of the effective date of this

section and by March 31 of each year thereafter, each authority

created under this act shall file a report with the Consumer

Protection and Professional Licensure Committee of the Senate,

the Transportation Committee of the Senate, the Consumer Affairs

Committee of the House of Representatives and the Transportation

Committee of the House of Representatives concerning at least

all of the following:

(1)  The budget of the authority.

(2)  The annual aggregate revenues of the authority.

(3)  The number of employes of the authority.

(4)  The status of any labor agreement or negotiations.

(5)  The annual aggregate revenue generated by transportation

service provided by the authority.

(6)  The annual aggregate ridership of the transportation

service provided by the authority.

(7)  The annual revenues of each transportation service

provided by the authority.

(8)  The annual ridership of each transportation service

provided by the authority.

(9)  The annual aggregate revenue generated by port

activities provided by the authority.

(10)  The annual aggregate use of port activities provided by

the authority.

Section 10.  This act shall take effect in 60 days.