H1590B1971A02073 VDL:JB 06/23/07 #90 A02073 AMENDMENTS TO HOUSE BILL NO. 1590 Sponsor: REPRESENTATIVE McCALL Printer's No. 1971 1 Amend Title, page 1, line 5, by removing the period after 2 "highways" and inserting 3 ; authorizing local taxation for public transportation 4 assistance; repealing provisions relating to public 5 transportation assistance; providing for transportation issues 6 and for sustainable mobility options; further providing, in 7 metropolitan transportation authorities, for board members and 8 for operation; consolidating the Turnpike Organization, 9 Extension and Toll Road Conversion Act and further providing for 10 the Pennsylvania Turnpike Commission; in provisions on the 11 Pennsylvania Turnpike, further providing for definitions, for 12 authorizations and for conversion to toll roads and providing 13 for conversion of Interstate 80, for application and for lease 14 of Interstate 80; in taxes for highway maintenance and 15 construction, providing for definitions; further providing for 16 imposition and for allocation of proceeds; providing for special 17 revenue bonds, for expenses, for application of proceeds of 18 obligations, for trust indenture, for exemption, for pledged 19 revenues, for special revenue refunding bonds, for remedies, for 20 Motor License Fund proceeds, for construction and for funding; 21 and making related repeals. 22 Amend Sec. 1 (Chapter Analysis), page 1, by inserting between 23 lines 13 and 14 24 8602. Local financial support. 25 Amend Sec. 1, page 1, by inserting after line 19 26 § 8602. Local financial support. 27 (a) Imposition.--Notwithstanding any other provision of law, 28 a municipality may obtain financial support for transit systems 29 by imposing one or more of the taxes or surcharges under 30 subsection (b). Money obtained from the imposition shall be 31 deposited into a restricted account of the municipality. The 32 following apply: 33 (1) Money in the restricted account shall be used to 34 meet the requirements of 74 Pa.C.S. §§ 1513(d)(1) (relating 35 to operating program), 1514(c) (relating to asset improvement 36 program) and 1515(d) (relating to new initiatives program). 37 (2) Money in the restricted account beyond that
1 necessary under paragraph (1) shall be used for public 2 passenger transportation, as defined in 74 Pa.C.S. § 1503 3 (relating to definitions). 4 (b) Taxes.-- 5 (1) A county may, by ordinance, impose all of the 6 following taxes: 7 (i) A sales tax on each separate sale at retail of 8 tangible personal property or services within the county 9 of either 0.25% or 0.5% of the purchase price. The 10 Department of Revenue shall administer and collect the 11 tax under this subparagraph in accordance with Article II 12 of the act of March 4, 1971 (P.L.6, No.2), known as the 13 Tax Reform Code of 1971, and shall distribute the money 14 to the county. As used in this subparagraph, the terms 15 "purchase price," "sale at retail" and "tangible personal 16 property" shall have the meanings given to them under 17 section 201 of the Tax Reform Code of 1971. 18 (ii) A use tax on each use within the county of 19 tangible personal property purchased at retail and on 20 those services purchased at retail of either 0.25% or 21 0.5% of the purchase price. The ordinance shall provide 22 that the tax shall not be paid if the person has paid the 23 tax imposed under subparagraph (i) or has paid the tax 24 imposed under this subparagraph to the vendor with 25 respect to the use. The Department of Revenue shall 26 administer and collect the tax under this subparagraph in 27 accordance with Article II of the Tax Reform Code of 1971 28 and shall distribute the money to the county. As used in 29 this subparagraph, the terms "purchase price," "tangible 30 personal property" and "vendor" shall have the meanings 31 given to them under section 201 of the Tax Reform Code of 32 1971. 33 (iii) An excise tax of either 0.25% or 0.5% of the 34 rent upon the occupancy of each hotel room in the county. 35 As used in this subparagraph, the terms "hotel," 36 "occupancy" and "rent" shall have the meanings given to 37 them under section 209(a) of the Tax Reform Code of 1971. 38 (2) A municipality other than a county may, by 39 ordinance, impose a tax on earned income, as defined under 40 section 13 of the act of December 31, 1965 (P.L.1257, 41 No.511), known as The Local Tax Enabling Act, of either 0.25% 42 or 0.5%. The tax under this paragraph shall be in addition to 43 the tax imposed under The Local Tax Enabling Act. 44 (3) A municipality may, by ordinance, impose a tax of up 45 to $2 per day on each rental vehicle. As used in this 46 paragraph, the term "rental vehicle" shall have the meaning 47 given it in section 1601-A of the Tax Reform Code of 1971. 48 (4) A county may impose, under the statutory authority 49 of the county to levy an excise tax on the price of a hotel 50 room rental, an additional excise tax of up to 1% on the 51 price of a hotel room rental. 52 Amend Sec. 2, page 68, line 26, by striking out "a chapter" 53 and inserting 54 chapters 55 Amend Sec. 2 (Chapter Heading), page 68, line 28, by striking HB1590A02073 - 2 -
1 out all of said line and inserting 2 TRANSPORTATION ISSUES 3 Amend Bill, page 69, by inserting between lines 9 and 10 4 Section 2.1. Title 74 is amended by adding a chapter to 5 read: 6 CHAPTER 15 7 SUSTAINABLE MOBILITY OPTIONS 8 Sec. 9 1501. Scope of chapter. 10 1502. (Reserved). 11 1503. Definitions. 12 1504. Program authorization. 13 1505. Regulations. 14 1506. Fund. 15 1507. Application and approval process. 16 1508. Federal funding. 17 1509. Limitation on decisions, findings and regulations of 18 department. 19 1510. Program oversight and administration. 20 1511. Report to Governor and General Assembly. 21 1512. Coordination. 22 1513. Operating program. 23 1514. Asset improvement program. 24 1515. New initiatives program. 25 1516. Programs of Statewide significance. 26 1517. Program oversight and administration. 27 1518. Retroactive authority. 28 § 1501. Scope of chapter. 29 This chapter relates to sustainable mobility options. 30 § 1502. (Reserved). 31 § 1503. Definitions. 32 The following words and phrases when used in this chapter 33 shall have the meanings given to them in this section unless the 34 context clearly indicates otherwise: 35 "Access to jobs project." A project relating to the 36 development and maintenance of transportation services designed 37 to transport welfare recipients and eligible low-income 38 individuals to and from jobs and activities related to their 39 employment as defined under 49 U.S.C. § 5316 (relating to job 40 access and reverse commute formula grants). 41 "Americans with Disabilities Act." The Americans with 42 Disabilities Act of 1990 (Public Law 101-336, 104 Stat. 327). 43 "Asset maintenance costs." All vehicle maintenance expenses, 44 nonvehicle maintenance and materials expenses and the cost of 45 supplies used in the operation of local transportation 46 organizations and transportation companies. 47 "Award recipient." A recipient of financial assistance under 48 this chapter. 49 "Capital expenditures." All costs of capital projects, 50 including, but not limited to, the costs of acquisition, 51 construction, installation, start-up of operations, improvements 52 and all work and materials incident thereto. 53 "Capital project." 54 (1) A system of public passenger transportation, 55 including rail transportation facilities used for public 56 passenger transportation, which facilities may include the HB1590A02073 - 3 -
1 following: 2 (i) railway, street railway, subway, elevated and 3 monorail passenger or passenger and rail rolling stock, 4 including self-propelled and gallery cars, locomotives, 5 passenger buses and wires, poles and equipment for the 6 electrification of any of such rails, tracks and 7 roadbeds, guideways, elevated structures, buildings, 8 stations, terminals, docks, shelters and parking areas 9 for use in connection with the rail transportation 10 systems, interconnecting lines and tunnels to provide 11 passenger or passenger and rail service connections 12 between transportation systems, transportation routes, 13 corridors and rights-of-way therefor, but not for public 14 highways; 15 (ii) signal and communication systems necessary or 16 desirable for the construction, operation or improvement 17 of a public passenger system; or 18 (iii) any improvement or overhaul of any vehicle 19 equipment or furnishings of any of the items specified 20 under subparagraphs (i) and (ii) or any part or 21 fractional and undivided co-ownership or leasehold 22 interest in any one or combination of any of the items 23 specified under subparagraphs (i) and (ii) that may be 24 designated as a capital project by the Secretary of 25 Transportation. 26 (2) The term shall include the acquisition of land 27 necessary for the construction of a new project and debt 28 service and the cost of issuance of bond notes and other 29 evidences of indebtedness which a local transportation 30 organization or transportation company is permitted to issue 31 under any law of this Commonwealth. 32 "Commonwealth capital bonds." Evidence of debt incurred by 33 the Commonwealth under the act of February 9, 1999 (P.L.1, 34 No.1), known as the Capital Facilities Debt Enabling Act. 35 "Community transportation service" or "shared ride service." 36 Door-to-door demand transportation that is available to the 37 general public on a nonexclusive basis, operates on a nonfixed 38 route basis and charges a fare to all riders. The term does not 39 include exclusive ride taxi service, charter and sightseeing 40 service, nonpublic transportation, school bus and limousine 41 service. 42 "Community transportation system." A person that provides 43 community transportation service and contracts with the 44 Department of Transportation to receive revenue replacement 45 funds. 46 "Department." The Department of Transportation of the 47 Commonwealth. 48 "Financial assistance." Grants or other types of financial 49 support provided by the Department of Transportation under this 50 chapter. 51 "Fixed guideway system." A fixed-route public transportation 52 service that uses and occupies a separate right-of-way or rail 53 line for the exclusive use of public transportation and other 54 high occupancy vehicles or uses a fixed catenary system and a 55 right-of-way usable by other forms of transportation. The term 56 includes light rail, commuter rail, automated guideway transit, 57 people movers, ferry boat service and fixed guideway facilities 58 for buses such as bus rapid transit and high occupancy vehicles. 59 "Fixed-route public transportation service." Regularly HB1590A02073 - 4 -
1 scheduled general public transportation that is provided 2 according to published schedules along designated routes, but 3 that allows for route deviation within the published schedule, 4 with specified stopping points for the taking on and discharging 5 of passengers, including public bus and commuter rail systems 6 and other department-approved service. The term does not include 7 exclusive ride taxi service, charter or sightseeing service, 8 nonpublic transportation, school bus and limousine service. 9 "Fund." The Public Transportation Trust Fund established 10 under section 1506 (relating to fund). 11 "Inflation index." An index established by the Department of 12 Transportation that is inflation sensitive. 13 "Intercity bus service." Passenger bus service of 35 miles 14 or more in length that is provided with an over the road bus and 15 operated between two noncontiguous urbanized areas, between an 16 urbanized area located in one county and rural communities 17 located in another county or between rural communities located 18 in different counties and contains all of the following 19 elements: 20 (1) Service that is operated for a fare on a regularly 21 scheduled fixed-route basis. 22 (2) Service that is offered to and utilized by the 23 general public without preconditions of advance reservation 24 or membership in a particular organization. 25 "Intercity passenger rail service." Passenger railroad 26 service that connects two or more urbanized areas and is 27 determined by the Department of Transportation to qualify as 28 intercity service rather than commuter rail service. 29 "Job access and reverse commute project." A project funded 30 by the Federal Transit Administration under Federal law. 31 "Local transportation organization." Any of the following: 32 (1) A political subdivision or a public transportation 33 port or redevelopment authority organized under the laws of 34 this Commonwealth or pursuant to an interstate compact or 35 otherwise empowered to render, contract for the rendering or 36 assist in the rendering of transportation service in a 37 limited area in this Commonwealth, even though it may also 38 render or assist in rendering transportation service in 39 adjacent states. 40 (2) A nonprofit association that directly or indirectly 41 provides public transportation service. 42 (3) A nonprofit association of public transportation 43 providers operating within this Commonwealth. 44 "Materials and supplies." Those categories of expenses as 45 specified in Uniform System of Accounts expense object class 46 504, National Transit Database operating expenses form F 30, 47 National Transit Database, Final Rule, Federal Transit 48 Administration, dated January 15, 1993, or any successor. 49 "Municipality." A city, borough, incorporated town or 50 township. 51 "New fixed guideway system." A newly-constructed fixed 52 guideway system in a corridor or alignment where no such system 53 previously existed. 54 "New freedom program." A public transportation program 55 designed to provide funds to recipients for new public 56 transportation services and public transportation alternatives 57 beyond those required by the Americans with Disabilities Act of 58 1990 (Public Law 101-336, 104 Stat. 327) that assist individuals 59 with disabilities with transportation, including transportation HB1590A02073 - 5 -
1 to and from jobs and employment support services administered 2 under the provisions of 49 U.S.C. § 5317 (relating to new 3 freedom program.) 4 "New start." The term shall have the same meaning given it 5 in 49 CFR § 611.5 (relating to definitions). 6 "Nonurbanized area." An area within this Commonwealth that 7 does not fall within an area classified as "urbanized" by the 8 United States Bureau of the Census of the United States 9 Department of Commerce in the most recent Census of Population. 10 "Nonvehicle maintenance expenses." The categories of costs 11 associated with the inspection, maintenance and repair of 12 assets, other than vehicles, as specified in Uniform System of 13 Accounts, expense function 042, National Transit Database 14 operating expenses form, F 30, National Transit Database, Final 15 Rule, Federal Transit Administration, dated January 15, 1993, or 16 any successor. 17 "Operating expenses." Total expenses required to continue 18 service to the public and to permit needed improvements in 19 service which are not self-supporting and otherwise for any 20 purpose in furtherance of public passenger transportation, 21 including all State asset maintenance costs. The term does not 22 include expenditures for capital projects unless specific 23 approval is provided by the Department of Transportation. 24 "Operating revenue." The total revenue earned by a local 25 transportation organization or a transportation company through 26 its transit operations. The term includes all of the following: 27 (1) Passenger fares. 28 (2) Reimbursements provided in lieu of fares for senior 29 passengers. 30 (3) Charter, school bus and advertising revenue. 31 (4) Other miscellaneous revenue such as public and 32 private route guarantee funds. 33 "Paratransit service." Transit service operating on a 34 nonfixed-route basis in order to provide complementary 35 transportation service to persons who are functionally unable to 36 use fixed-route transportation, as required by the Americans 37 with Disabilities Act of 1990 (Public Law 101-336, 104 Stat. 38 327). 39 "Passengers." The total of all originating passengers plus 40 transfer passengers carried on fixed-route service and 41 paratransit service. 42 "Public passenger transportation." Transportation within an 43 area that includes a municipality or other built-up place that 44 is appropriate in the judgment of the Department of 45 Transportation to serve commuters or others in the locality, 46 taking into consideration the local patterns and trends of 47 growth by bus or rail or other conveyance, either publicly or 48 privately owned, serving the general public. The term does not 49 include school buses, charter or sightseeing services. 50 "Revenue replacement funds." Payments made to local 51 transportation organizations and transportation companies to 52 offset or partially offset fares. 53 "Revenue vehicle hours." The total amount of time calculated 54 in hours during which vehicles are in service and available for 55 public use in fixed-route service or paratransit service. The 56 term does not include deadhead hours. 57 "Revenue vehicle miles." The total amount of distance 58 calculated in miles during which vehicles are in service and 59 available for public use in fixed-route service or paratransit HB1590A02073 - 6 -
1 service. The term does not include deadhead miles. 2 "Reverse commute project." A public transportation project 3 designed to transport residents of urbanized and nonurbanized 4 areas to suburban employment opportunities as defined under 49 5 U.S.C. § 5316 (relating to job access and reverse commute 6 formula grants). 7 "Secretary." The Secretary of Transportation of the 8 Commonwealth. 9 "Senior citizen." A person who is at least 65 years of age. 10 "Senior passenger." A senior citizen who rides on fixed 11 route service. 12 "Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2), 13 known as the Tax Reform Code of 1971. 14 "Transportation company." A person that renders public 15 passenger transportation service. 16 "Urbanized area." A portion of this Commonwealth classified 17 as urbanized by the United States Bureau of the Census of the 18 United States Department of Commerce in the most recent Census 19 of Population. 20 "Vehicle maintenance expenses." The categories of costs 21 associated with the inspection, maintenance and repair of 22 vehicles as specified in Uniform System of Accounts, expense 23 function 041, National Transit Database operating expenses form 24 F 30, National Transit Database, Final Rule, Federal Transit 25 Administration, dated January 15, 1993, or any successor. 26 "Welfare-to-work." Any Federal or State program designed to 27 move individuals from dependency on public welfare programs to 28 self-sufficiency through paid work. 29 § 1504. Program authorization. 30 (a) General.--The department may, within the limitations 31 provided in this chapter, incur costs directly or otherwise 32 provide financial assistance for the purposes and activities 33 enumerated in this chapter. 34 (b) Supplementation of Federal and local funds.--The 35 authority conferred on the department by this section includes, 36 but is not limited to, providing financial assistance for public 37 passenger transportation purposes and to supplement Federal 38 funding, local funding, or both. 39 § 1505. Regulations. 40 (a) General rule.--To effectuate and enforce the provisions 41 of this chapter, the department shall promulgate necessary rules 42 and regulations and prescribe conditions and procedures in order 43 to assure compliance in carrying out the purposes for which 44 financial assistance may be made under this chapter. 45 (b) Temporary regulations.--During the two-year period 46 following the effective date of this section, the department 47 shall promulgate temporary regulations, which regulations shall 48 be exempt from the following: 49 (1) The act of October 15, 1980 (P.L.950, No.164), known 50 as the Commonwealth Attorneys Act. 51 (2) Section 205 of the act of July 31, 1968 (P.L.769, 52 No.240), referred to as the Commonwealth Documents Law. 53 (3) The act of June 25, 1982 (P.L.633, No.181), known as 54 the Regulatory Review Act. 55 Temporary regulations promulgated by the department under this 56 subsection shall expire four years following the effective date 57 of this section. 58 § 1506. Fund. 59 (a) Establishment and deposits.--A special fund is HB1590A02073 - 7 -
1 established within the State Treasury to be known as the Public 2 Transportation Trust Fund. The following shall be deposited into 3 the fund annually: 4 (1) Funds under 75 Pa.C.S. § 8915.3(8) (relating to 5 lease of Interstate 80). 6 (2) The amounts made available to the department as an 7 executive authorization and an appropriation for the 2007- 8 2008 fiscal year and each fiscal year thereafter from the 9 State Lottery Fund for the Free Transit Program for Senior 10 Citizens established under the act of August 26, 1971 11 (P.L.351, No.91), known as the State Lottery Law. These 12 revenues shall be used to provide free public transportation 13 service to senior citizens when passage is on fixed-route 14 public transportation services, as authorized by Chapter 9 of 15 the State Lottery Law and the free service shall be available 16 to senior citizens at any time during the service provider's 17 regular hours of service. With regard to passage on commuter 18 rail service provided to senior citizens, the fare shall 19 continue to be limited to $1 per trip as provided under 20 Chapter 9 of the State Lottery Law, but the limitation shall 21 be extended to all hours of commuter rail service. 22 (3) Commencing July 1, 2007, 1.22% of the money 23 collected from the tax imposed under Article II of the Tax 24 Reform Code, up to a maximum of $75,000,000. 25 (4) Commencing July 1, 2007, revenues deposited into the 26 Public Transportation Assistance Fund established under 27 Article XXIII of the Tax Reform Code to be used in accordance 28 with subsection (b). 29 (5) Commencing July 1, 2007, 3.03% of the money 30 collected from the tax imposed under Article III of the Tax 31 Reform Code. Within 30 days of the close of a calendar month, 32 3.03% of the taxes received under Article III of the Tax 33 Reform Code in the prior calendar month shall be transferred 34 to the fund. 35 (6) Any other appropriations to the fund. 36 (b) Use of revenues.-- 37 (1) Money in the fund shall be used by the department to 38 provide financial assistance to local transportation 39 organizations, transportation companies and agencies and 40 instrumentalities of the Commonwealth under this chapter, for 41 costs incurred directly by the department in the 42 administration of public passenger transportation programs, 43 including under this chapter, and for all other purposes 44 enumerated in this chapter. 45 (2) Money in the fund is appropriated on a continuing 46 basis, upon approval of the Governor, to the department to be 47 used as provided in this chapter. Money in the fund shall not 48 lapse. 49 (c) Programs.--The fund is authorized to provide the 50 following: 51 (1) Financial assistance related to operating expenses 52 to be known as the "operating program." To the extent funds 53 are available, an amount not less than $810,000,000 of the 54 fund shall be allocated to this program in the first fiscal 55 year following the effective date of this section. Money in 56 the fund allocated to the operating program shall not be 57 increased by more than the inflation index in any year. 58 (2) Financial assistance for improvements to capital 59 assets, replacement of capital assets and expansion of HB1590A02073 - 8 -
1 capital assets to be known as the "asset improvement 2 program." An amount equal to the remaining money in the fund, 3 less the allocations under paragraphs (1), (3) and (4) shall 4 be allocated to this program in the first fiscal year 5 following the effective date of this section. Money in the 6 fund for this program may include proceeds of Commonwealth 7 capital bonds. 8 (3) Financial assistance to fund new or expansions of 9 fixed guideway systems, to be known as the "new initiatives 10 program." An amount not greater than $50,000,000 of the fund 11 shall be allocated to this program in the first fiscal year 12 following the effective date of this section. 13 (4) Financial assistance related to programs of 14 Statewide significance as described in section 1516 (relating 15 to programs of Statewide significance) to be known as the 16 "programs of Statewide significance program." To the extent 17 funds are available, an amount not less than $52,000,000 of 18 the fund shall be allocated to this program in the first 19 fiscal year following the effective date of this section. 20 § 1507. Application and approval process. 21 (a) Application.--An eligible applicant that wishes to 22 receive financial assistance under this chapter shall submit a 23 written application to the department, on a form developed by 24 the department, which shall include the following: 25 (1) The name and address of the applicant. 26 (2) The name and telephone number of a contact person 27 for the applicant. 28 (3) The amount and type of financial assistance 29 requested and the proposed use of the funds. 30 (4) A statement as to the particular need for the 31 financial assistance. 32 (5) A certified copy of a current resolution authorizing 33 submission of the application if the applicant is a governing 34 body. 35 (6) Evidence satisfactory to the department of the 36 commitment for matching funds required under this chapter 37 sufficient to match the projected financial assistance 38 payments at the same times that the financial assistance 39 payments are to be provided. 40 (7) Any other information the department deems necessary 41 or desirable. 42 (b) Approval and award.--Upon determining that an applicant 43 has complied with this chapter, applicable rules and regulations 44 and any other requirement with respect to the financial 45 assistance requested, the department may award financial 46 assistance to the applicant, in which case the department and 47 the applicant shall enter into a financial assistance agreement 48 setting forth the terms and conditions upon which the financial 49 assistance shall be used and the timing of payment of the funds. 50 (c) Restriction on use of funds.--Financial assistance under 51 this chapter shall be used only for activities authorized 52 originally unless the department grants a waiver to the award 53 recipient for a different use of the funds. The department's 54 regulations shall describe circumstances under which it will 55 consider the waivers and information to be included in a request 56 for a waiver. The maximum duration of a waiver shall be one 57 year, and a request for a waiver shall include a plan of 58 corrective action to demonstrate that the award recipient does 59 not have an ongoing need to use financial assistance funds for HB1590A02073 - 9 -
1 activities other than those for which funds were originally 2 awarded. 3 § 1508. Federal funding. 4 (a) General rule.--The department shall administer the 5 program in this chapter with such flexibility as to permit full 6 cooperation between Federal, State and local governments, 7 agencies and instrumentalities, local transportation 8 organizations and private interests, so as to result in as 9 effective and economical a program as possible. 10 (b) Agreements.--The department may enter into agreements 11 for mutual cooperation between or among the department and a 12 Federal agency, local transportation organization or 13 transportation company concerning a project to be funded with 14 financial assistance under this chapter, including joint 15 applications for Federal grants. 16 (c) General authority of department.--The department may do 17 anything necessary or desirable to secure financial aid or 18 cooperation of a Federal agency in a project funded with 19 financial assistance under this chapter and to comply with a 20 Federal statute or lawful requirement of a Federal agency 21 authorized to administer a program of Federal aid to 22 transportation. The department may enter into a protective 23 agreement with organized labor to the extent required under 49 24 U.S.C. § 5333 (relating to labor standards) in order to obtain 25 Federal grant money for transportation assistance. Protective 26 agreements shall be narrowly drawn and strictly construed to 27 provide no more than the minimum protections required by the 28 United States Department of Labor for the agreements. 29 (d) Direct recipients.--Local transportation organizations 30 that are direct recipients of Federal funding shall be under no 31 obligation to enter into contracts with the department for 32 expenditure of those funds, except that the department may 33 require a contract for expenditure of the State portion of the 34 project assisted by those Federal funds. 35 § 1509. Limitation on decisions, findings and regulations of 36 department. 37 All decisions, findings and regulations made by the 38 department pursuant to this chapter shall be for the purposes of 39 this chapter only and shall not constitute evidence before a 40 regulatory body of this Commonwealth or any other jurisdiction. 41 § 1510. Program oversight and administration. 42 (a) Review and oversight.--The department shall initiate and 43 maintain a program of financial and performance review and 44 oversight for all public transportation programs receiving 45 financial assistance under this chapter. The department may 46 perform independent financial audits of each award recipient. 47 Audits shall be conducted in accordance with generally accepted 48 auditing standards and shall ensure compliance by award 49 recipients with this chapter, department regulations and 50 policies and financial assistance agreements. 51 (b) State Rail Transit Safety Inspection Program.--The 52 department may conduct a State Rail Transit Safety Inspection 53 Program, as may be defined from time to time by the Federal 54 Transit Administration, to meet oversight requirements of the 55 Federal Transit Administration. The public transportation modes 56 covered shall include heavy rail, light rail, trackless trolley 57 bus and inclined plane services and related facilities. 58 § 1511. Report to Governor and General Assembly. 59 The department shall file a public passenger transportation HB1590A02073 - 10 -
1 performance report with the Governor and the General Assembly by 2 April 30 of each year, covering the prior fiscal year. 3 § 1512. Coordination. 4 Coordination is required in regions where two or more award 5 recipients have services or activities for which financial 6 assistance is being provided under this chapter to assure that 7 the services or activities are provided efficiently and 8 effectively. 9 § 1513. Operating program. 10 (a) Eligible applicants.--The governing body of a 11 municipality, county or instrumentality of either, a 12 Commonwealth agency or instrumentality or a local transportation 13 organization may apply for financial assistance under the 14 operating program. 15 (b) Applications.--In addition to information required under 16 section 1507 (relating to application and approval process), an 17 application for financial assistance under this section shall 18 include the applicant's reasonable estimates of operating 19 revenue and government subsidies sufficient to cover all 20 projected operating expenses. 21 (c) Distribution formula.--The following distribution 22 formula shall be applied by the department with respect to the 23 award of an operating grant: 24 (1) Twenty-five percent of the award amount shall be 25 based on passengers; 26 (2) Ten percent of the award amount shall be based on 27 senior passengers to offset free fares for senior passengers; 28 (3) Thirty-five percent of the award amount shall be 29 based on revenue vehicle hours; 30 (4) Thirty percent of the award amount shall be based on 31 revenue vehicle miles. 32 (d) Local match requirements.-- 33 (1) Local or private cash funding shall be provided as a 34 match in the amount of 20% of the financial assistance being 35 provided. The following apply: 36 (i) For the Fiscal Year 2007-2008, the minimum of 37 local or private cash funding required under this 38 paragraph shall be: 39 (A) the match required for Fiscal Year 2006- 40 2007; and 41 (B) 5% of the amount under clause (A). 42 (ii) For each fiscal year after Fiscal Year 2007- 43 2008 until the match required under this paragraph is 44 reached, the minimum of local or private cash funding 45 required under this paragraph shall be: 46 (A) the match required for the immediately 47 preceding fiscal year; and 48 (B) 5% of the amount under clause (A). 49 (iii) There is no maximum on the local or private 50 cash funding required under this paragraph. 51 (2) For financial assistance to a local transportation 52 organization, eligible local matching funds shall consist 53 only of cash contributions provided by one or more 54 municipalities or counties that are members of the local 55 transportation organization. The amount of the match and the 56 time period during which the match must continue to be 57 available shall be specified in the financial assistance 58 agreement. Funding provided by local and private entities, 59 including advertising or naming rights, may be eligible for HB1590A02073 - 11 -
1 the match to the extent they provide for the cost of transit 2 service that is open to the public. The following shall not 3 be eligible for a local match: 4 (i) Any form of transit operating revenue or other 5 forms of transit income provided by the local 6 transportation organization. 7 (ii) Funds used to replace fares. 8 (3) A county or municipality in a metropolitan area 9 which is a member of a local transportation organization is 10 authorized to provide annual financial assistance from 11 current revenues to the local transportation organization of 12 which it is a member or enter into a long-term agreement for 13 payment of money to assist in defraying the costs of 14 operation, maintenance and debt service of the local 15 transportation organization or of a particular public 16 transportation project of a local transportation 17 organization. The obligation of a municipality or county 18 under an agreement pursuant to this paragraph shall not be 19 considered to be a part of the indebtedness of the county or 20 municipality, nor shall the obligation be deemed to impair 21 the status of any indebtedness of the county or municipality 22 which would otherwise be considered self-sustaining. 23 (4) The following shall apply to the Southeastern 24 Pennsylvania Transportation Authority: 25 (i) The local match provided by each jurisdiction 26 shall be calculated by multiplying the total match 27 required for State funding by the total of route miles 28 provided in that jurisdiction as a percentage of the 29 total route miles operated in all jurisdictions. Where 30 appropriate, a transportation system may calculate the 31 local match by mode or division, or both. 32 (ii) The department shall suspend funding of any 33 capital project within any county that fails to meet its 34 required matching funds requirement under this 35 subsection, and a transportation system shall not expand 36 service into any county that fails to meet its required 37 matching funds under this subsection. During any time in 38 which a county fails to meet its required matching funds 39 under this subsection the county's representative on the 40 governing body of the transporting organization shall 41 become a nonvoting member of the governing body until 42 such time that the county meets its local matching 43 requirements. 44 (e) Performance reviews.-- 45 (1) The department may conduct performance reviews of an 46 award recipient that receives financial assistance under this 47 section to determine the efficiency and effectiveness of the 48 financial assistance. Reviews shall be conducted at regular 49 intervals as established by the department in consultation 50 with the management of the award recipient. After completion 51 of a review, the department shall issue a report that: 52 (i) highlights exceptional performance and 53 identifies any problems that need to be resolved; 54 (ii) assesses performance, efficiency and 55 effectiveness of the use of the funds; 56 (iii) makes recommendations on what follow-up 57 actions are required to remedy each problem; and 58 (iv) provides an action plan documenting who should 59 perform the recommended actions and a time frame within HB1590A02073 - 12 -
1 which they should be performed. 2 (2) The department shall deliver the report to the 3 Governor, to the Transportation Committee of the Senate and 4 to the Transportation Committee of the House of 5 Representatives. The department's regulations shall contain a 6 description of the impact on both the amount of, and future 7 eligibility for, receipt of financial assistance under this 8 chapter based upon the degree to which the local 9 transportation organization complies with the recommendations 10 in the report. The department shall develop a list of best 11 practices revealed by the reports issued under this 12 subsection and shall post them on the department's Internet 13 website. 14 (f) Performance criteria.--Criteria used for the reviews 15 conducted under subsection (e) shall consist of passengers per 16 revenue vehicle hour, operating costs per revenue vehicle hour, 17 operating revenue per revenue vehicle hour, operating costs per 18 passenger and other items as the department may establish. The 19 department's regulations shall set forth the minimum system 20 performance criteria that an award recipient must satisfy. 21 (g) Failure to satisfy minimum performance criteria.--If a 22 performance review conducted under subsection (e) reveals: 23 (1) that the performance of an award recipient's 24 transportation system has decreased compared to performance 25 determined through a prior review, the department may, upon 26 the written request of an award recipient, waive any 27 requirement for a reduction in the amount of financial 28 assistance to be awarded under this section for a reasonable 29 time period to allow the award recipient to bring the system 30 back to the required performance level. The award recipient 31 shall provide written justification for providing a time 32 period longer than two years. In order to obtain the waiver 33 for the period requested, the award recipient must do all of 34 the following: 35 (i) Develop an action plan to improve system 36 performance that contains key measurable milestones. The 37 action plan must be acceptable to the department and must 38 be approved by the department in writing. 39 (ii) Submit quarterly progress reports on the action 40 plan to the department. 41 (2) The department shall review and evaluate the award 42 recipient's progress to determine if the system has improved. 43 If the system has improved, funding will be determined by the 44 formula under subsection (c), and the award recipient will be 45 eligible for full formula funding. If the system has not 46 improved at the end of the time period established for 47 improvement, the waiver will be withdrawn. Expenses incurred 48 by the award recipient as a result of the failure of the 49 award recipient's system to meet the minimum performance 50 criteria shall be borne by the award recipient. 51 (h) Adjustments to minimum performance criteria.--Upon 52 written request of a recipient of financial assistance under 53 this section, the department may approve adjustments to the 54 minimum performance criteria described in subsection (g) in a 55 given year if situations arise that affect performance of the 56 award recipient's system and are out of the award recipient's 57 control. Examples are labor strikes, infrastructure failures and 58 natural disasters. The request must include the award 59 recipient's justification for the adjustment. HB1590A02073 - 13 -
1 (i) Periodic review of formula.--The department, in 2 consultation with all award recipients, shall review the 3 distribution formula established under subsection (c) at least 4 once every three years and, prior to the start of the next 5 succeeding fiscal year, shall recommend adjustments it deems 6 appropriate. If an adjustment results in a change of five 7 percentage points or less in any category, the department shall 8 forward a notice of the change to the Legislative Reference 9 Bureau for publication in the Pennsylvania Bulletin, and the 10 change shall take effect at the commencement of the next fiscal 11 year. If an adjustment results in a change in excess of five 12 percentage points in any category, the change shall be 13 incorporated into the department's regulations by amendment and 14 shall take effect at the commencement of the next fiscal year 15 following promulgation of the amendment. 16 (j) Needs-based adjustment.--In order to allow an award 17 recipient that was receiving financial assistance under former 18 Chapter 13 (relating to public transportation assistance) prior 19 to the effective date of this section to transition into the 20 funding formula established under subsection (c), the department 21 shall provide the award recipient, as part of the award under 22 this section, with a needs-based adjustment. The needs-based 23 adjustment shall be calculated by increasing the amount that the 24 award recipient received under Chapter 13 for operating expenses 25 and asset maintenance costs in the 2005-2006 fiscal year and 26 increasing the resulting amount by an adjustment factor to 27 assure a funding level consistent with the operating funding 28 needs as identified by the department. Funds remaining after the 29 needs-based adjustment is applied shall be set aside in an 30 operating reserve account to be used at the department's 31 discretion for short-term public passenger transportation needs. 32 The department's regulations shall establish the manner in which 33 the funds in the reserve account may be used. 34 (k) Growth caps.--Each fiscal year after the fiscal year in 35 which the department provides a needs-based adjustment under 36 subsection (i), the department shall determine the maximum 37 percentage increase that an award recipient shall be eligible to 38 receive for operating expenses in addition to an increase tied 39 to the inflation index amount. The maximum percentage increase 40 shall be capped at the inflation index rate of the award 41 recipient's transportation system's passengers per revenue hour, 42 or revenue per revenue vehicle hour performance, falls below 43 peer system average or if the operating cost per revenue hour or 44 operating cost per passenger exceeds the peer system average. 45 Notwithstanding the provisions of this subsection, money 46 available for financial assistance under this section shall at 47 all times be capped by the amount of money in the fund allocated 48 for the operating program. 49 (l) Operating reserve.--The department may establish a 50 limitation on the amount of financial assistance awarded under 51 this section that may be carried over for use in subsequent 52 fiscal years. 53 (m) Certification.--The Commonwealth shall not provide 54 financial assistance to a municipality under this section unless 55 the municipality certifies the amount of its local match under 56 subsection (d). 57 § 1514. Asset improvement program. 58 (a) Eligible applicants.--A local transportation 59 organization, an agency or instrumentality of the Commonwealth, HB1590A02073 - 14 -
1 an entity responsible for coordinating community transportation 2 program services, or any other person the department deems to be 3 eligible may apply to the department for financial assistance 4 under the asset improvement program. The department shall 5 develop and maintain four-year and twelve-year plans that 6 summarize the capital projects and financial assistance for 7 capital projects based upon cash flow and revenue projections 8 for the fund. 9 (b) Applications.--In addition to information required under 10 section 1507 (relating to application and approval process), an 11 application for financial assistance under this section shall 12 include the following: 13 (1) Evidence satisfactory to the department that the 14 proposed capital project is included in the first year of the 15 applicant's four-year capital program and its federally 16 approved Transportation Improvement Program. 17 (2) If an applicant is requesting financial assistance 18 for replacement of capital assets, evidence satisfactory to 19 the department that the capital assets to be replaced have 20 exceeded the useful life criteria as defined by the 21 department. At its discretion, the department may approve 22 funding to replace capital assets that do not exceed the 23 useful life criteria if the applicant provides documentation 24 acceptable to the department to justify the early replacement 25 of the capital assets. 26 (3) If the applicant is requesting financial assistance 27 for expansion of capital assets, evidence satisfactory to the 28 department that the applicant will have sufficient future 29 annual operating funds to support the proposed expansion of 30 the assets. 31 (4) Any other information required by the department, 32 including a return on investment analysis or a life cycle 33 cost analysis, or both. 34 (c) Local match requirements.--Financial assistance under 35 this section shall be matched by local or private cash funding 36 in an amount not less than 20% of the amount of the financial 37 assistance. The source of funds for the local match shall be 38 subject to the requirements of section 1513(d) (relating to 39 operating program). Each capital project shall be based on the 40 plan approved by the department. 41 (d) Conditions for receipt of bond funding.--An applicant 42 may receive proceeds of Commonwealth capital bonds from the fund 43 for financial assistance under this section if all of the 44 following conditions are met: 45 (1) The applicant's project has been authorized by a 46 capital budget project itemization act. 47 (2) The applicant's project shall have been included in 48 the department's approved annual release request approving 49 the use of the funds for the proposed capital project in the 50 fiscal year in which the funds are expected to be expended. 51 (3) The department shall have approved the underlying 52 application for the capital project. 53 (4) The project has a 20-year or longer useful life. 54 (e) Priorities.--The award of financial assistance under 55 this section shall be subject to the following set of priorities 56 in descending order of significance unless a compelling return 57 on investment analysis for a project in a lower significant 58 category is provided to and approved by the department: 59 (1) Funds required to support existing local bond issues HB1590A02073 - 15 -
1 currently supported with State revenue sources, such as debt 2 service and asset leases. The Commonwealth pledges to and 3 agrees with any person, firm or corporation holding any bonds 4 previously issued by, or any other debt incurred by, a local 5 transportation organization, and secured in whole or part by 6 a pledge of the funds provided to the local transportation 7 organization from the Public Transportation Assistance Fund 8 established under Article XXIII of the Tax Reform Code, that 9 the Commonwealth will not limit or alter rights vested in a 10 local transportation organization in any manner inconsistent 11 with obligations of the local transportation organization to 12 the obligees of the local transportation organization until 13 all bonds previously issued or other debt incurred, together 14 with the interest thereon, is fully paid or provided for. 15 (2) Funds required to match federally approved capital 16 projects funded under 49 U.S.C. §§ 5307 (relating to 17 urbanized area formula grants) and 5309 (relating to capital 18 investment grants and loans) and other federally approved 19 capital projects. 20 (3) Other non-Federal capital projects as determined by 21 the department, which shall be further subject to the 22 following set of priorities in descending order of 23 significance: 24 (i) Essential emergency asset improvement projects. 25 (ii) Standard replacement of existing assets that 26 have exceeded their useful life. 27 (iii) Asset improvement projects to extend the 28 useful life of the affected assets. 29 (iv) Acquisition of new assets and other acceptable 30 purposes, other than projects to be funded under the new 31 initiatives program, as determined by the department. 32 (f) Bonding by award recipients.--With the approval of the 33 department, an award recipient that is allowed by its enabling 34 statute to issue bonds may do so for the purpose of financing a 35 multiyear capital project. The bonds shall be issued in 36 accordance with the provisions of the award recipient's enabling 37 statute. The department shall enter into an agreement with the 38 award recipient providing that payments of the capital funds 39 sufficient to satisfy requirements of the bonds issued be made 40 directly to the trustee and bond holders until such time as the 41 bonds are retired. 42 (g) Certification.--The Commonwealth shall not provide 43 financial assistance to a municipality under this section unless 44 the municipality certifies the amount of its local match under 45 subsection (c). 46 § 1515. New initiatives program. 47 (a) Eligible applicants.--Persons eligible to apply for 48 financial assistance under the asset improvement program shall 49 also be eligible to apply for financial assistance under the new 50 initiatives program. 51 (b) Applications.--In addition to the information required 52 under section 1507 (relating to application and approval 53 process), an application for financial assistance under this 54 section shall include all of the information required in an 55 application for financial assistance under section 1514 56 (relating to asset improvement program). If the application is 57 for a proposed expansion of a capital asset, the application 58 shall also contain evidence satisfactory to the department that 59 the applicant will have sufficient future annual operating funds HB1590A02073 - 16 -
1 to support the proposed expansion. 2 (c) Limitation.--In making awards of financial assistance 3 under this section, the department shall give priority to 4 applicants that intend to use the funds in satisfaction of the 5 local matching portion of federally approved projects funded 6 pursuant to 49 U.S.C. § 5309 (relating to capital investment 7 grants and loans). The department may fund projects that do not 8 receive funding from the Federal New Starts Program if the 9 applicant can provide sufficient justification that the project 10 can meet all of the following requirements: 11 (1) Investments in existing service areas have been 12 optimized. 13 (2) An analysis reveals a reasonable return on 14 investment. 15 (3) Identification of the public benefit of the project. 16 (4) Required local funds are available to pay any 17 required local match for the project and ongoing operating 18 costs. 19 (5) There exists local technical ability and capacity to 20 manage, construct and operate the project. 21 (6) The project is supported by the adoption of an 22 integrated land use plan by local municipalities. 23 (d) Local match requirements.--Financial assistance under 24 this section shall be matched by local or private cash funding 25 in an amount not less than 100% of the amount of the grant. The 26 source of funds for the local match shall be subject to the 27 requirements of section 1513(d) (relating to operating program). 28 (e) Certification.--The Commonwealth shall not provide 29 financial assistance to a municipality under this section unless 30 the municipality certifies the amount of its local match under 31 subsection (d). 32 § 1516. Programs of Statewide significance. 33 (a) General rule.--Money in the fund allocated for programs 34 of Statewide significance shall be used by the department to 35 support public transportation programs, activities and services 36 not otherwise fully funded through the operating program, 37 capital program or asset improvement program. These include the 38 following: 39 (1) The Persons with Disabilities Program. 40 (2) Intercity rail and bus services. 41 (3) Community transportation capital and service 42 stabilization. 43 (4) The Welfare to Work Program and matching funds for 44 Federal programs with similar intent. 45 (5) Demonstration and research projects. 46 (6) Technical assistance. 47 (7) (Reserved). 48 (8) (Reserved). 49 (9) (Reserved). 50 (10) (Reserved). 51 (11) Other public passenger transportation programs 52 initiated by the department. 53 (b) Persons with disabilities.--The department shall 54 establish and administer a program providing reduced fares to 55 persons with disabilities on community transportation services 56 and to provide financial assistance for start-up, administrative 57 and capital expenses related to reduced fares for persons with 58 disabilities. All of the following shall apply: 59 (1) A community transportation system operating in the HB1590A02073 - 17 -
1 Commonwealth other than in counties of the first and second 2 class may apply for financial assistance under this 3 subsection. 4 (2) The department may award financial assistance under 5 this subsection for program start-up and for continuing 6 capital expenses to offset administrative and capital 7 expenses. For community transportation trips made by eligible 8 persons with disabilities, financial assistance may be 9 awarded to an eligible community transportation system to 10 reimburse the system for up to 85% of the fare established 11 for the general public for each trip which is outside of a 12 fixed-route and paratransit service areas and not eligible 13 for funding from any other program or funding source. The 14 person making the trip or an approved third-party sponsor 15 shall contribute the greater of 15% of the fare established 16 for the general public or the Americans with Disabilities Act 17 complementary paratransit fare. 18 (c) Intercity transportation.--The department is authorized 19 to provide financial support for an efficient and coordinated 20 intercity common carrier surface transportation program, 21 consisting of both intercity rail and intercity bus 22 transportation, with the intent of sustaining strong intercity 23 connections. All of the following shall apply: 24 (1) An intercity passenger rail service provider, a 25 local transportation organization, an agency or 26 instrumentality of the Commonwealth and a transportation 27 company that provides intercity public transportation service 28 may apply for financial assistance under this subsection. The 29 department is authorized to enter into joint service 30 agreements with a railroad company, any other agency or 31 instrumentality of the Commonwealth, a Federal agency or an 32 agency or instrumentality of any other jurisdiction relating 33 to property, buildings, structures, facilities, services, 34 rates, fares, classifications, dividends, allowances or 35 charges, including charges between intercity rail passenger 36 service facilities, or rules or regulations pertaining 37 thereto, for or in connection with or incidental to 38 transportation in whole or in part upon intercity rail 39 passenger service facilities. 40 (2) Operating assistance and capital assistance may be 41 provided for intercity bus and rail services as determined by 42 the department. 43 (3) For financial assistance to a transportation 44 company, eligible matching funds shall consist only of cash 45 income generated by the transportation company from its 46 activities, other than the provision of public passenger 47 transportation service, and contributed by the transportation 48 company in the amount and for the time period specified in 49 the financial assistance agreement. 50 (4) Local match requirements are as follows: 51 (i) For intercity bus operating and capital 52 assistance, the department shall require a local match by 53 local or private cash funding in an amount equal to 100% 54 of the amount of the financial assistance being provided. 55 (ii) For intercity rail operating and capital 56 assistance, the department shall require a local match on 57 a case-by-case basis, taking into account the best 58 interests of the Commonwealth. 59 (5) For purposes of this subsection, "local match" is HB1590A02073 - 18 -
1 defined as local revenue obtained from other nonsubsidized 2 services, such as charter, school bus or profits realized 3 from other intercity bus services. Local match shall not 4 include any funds received from Federal or State sources. 5 (d) Community transportation.-- 6 (1) The department is authorized to provide financial 7 assistance under this section for all of the following: 8 (i) Capital expenditures for the provision of 9 community transportation service. 10 (ii) To stabilize current service and fares. 11 (iii) To provide advice or technical assistance to 12 analyze and enhance community transportation system 13 resources and services. 14 (iv) To maximize available funding including Federal 15 dollars. 16 (v) To ensure equitable cost sharing. 17 (2) The governing body of a county, other than a county 18 of the first or second class, or a transportation company 19 designated by the governing body of the county as the 20 coordinator of community transportation service, and an 21 agency or instrumentality of the Commonwealth may apply for 22 financial assistance under this subsection subject to all of 23 the following: 24 (i) An applicant for financial assistance for 25 capital expenditures for the provision of public 26 community transportation service shall certify to the 27 department that it has taken all reasonable steps to 28 coordinate local service for the elderly and persons with 29 disabilities and that the services to be offered with the 30 capital assets do not duplicate existing fixed-route 31 services. 32 (ii) The governing body of a county or the 33 coordinator described under this paragraph shall not be 34 eligible for financial assistance for service 35 stabilization if any of the following apply: 36 (A) The coordinator receives financial 37 assistance under the operating program established 38 under this chapter. 39 (B) The coordinator is a private for-profit 40 provider. 41 (3) Financial assistance for service stabilization may 42 only be provided for the following purposes: 43 (i) Short-term, long-term and strategic planning. 44 (ii) Technology investment. 45 (iii) Training programs designed to enhance 46 transportation management and staff expertise. 47 (iv) Offsetting operating expenses that cannot be 48 covered by fare revenue due to emergencies. 49 (v) Marketing activities. 50 (vi) Other stabilization purposes approved by the 51 department. 52 (4) The department shall give high priority to providing 53 financial assistance under this subsection as match for 54 Federal funding to support capital projects for community 55 transportation systems. 56 (5) The department shall conduct a study to evaluate the 57 effectiveness and efficiency of community transportation 58 service delivery as it relates to human service programs. The 59 Department of Public Welfare, the Office of the Budget and HB1590A02073 - 19 -
1 the Department of Aging and other appropriate Commonwealth 2 agencies identified by the department shall participate and 3 fully support the study to achieve the intended purposes. 4 Within two years following the effective date of this 5 section, these agencies shall make recommendations to the 6 Governor and the Majority and Minority chairpersons of the 7 Transportation Committee of the Senate and the Majority and 8 Minority chairpersons of the Transportation Committee of the 9 House of Representatives for improving coordination and 10 efficiency of human services and community transportation. 11 (d) Welfare-to-work and Federal programs match.--The 12 department is authorized to provide financial assistance under 13 this section to design and implement projects and services and 14 to reimburse award recipients for the expenses associated with 15 the projects and services that identify and address public 16 passenger transportation and related barriers preventing 17 individuals eligible for participation in the Federal welfare- 18 to-work program from securing and maintaining employment and 19 from accessing community services and facilities. All of the 20 following shall apply: 21 (1) A local transportation organization, a 22 transportation company designated by a county as the 23 coordinator of community transportation services and any 24 other person approved by the department may apply to the 25 department for financial assistance under this subsection. 26 (2) Financial assistance awarded under this subsection 27 shall be used for any of the following purposes: 28 (i) Fixed-route service subsidy. 29 (ii) Contracted transportation services. 30 (iii) Fixed-route fare discounts. 31 (iv) Community transportation fare discounts. 32 (v) Taxi fare discounts. 33 (vi) Mileage reimbursement. 34 (vii) Vehicle purchase, insurance, maintenance and 35 repair. 36 (viii) Driver education classes. 37 (ix) Administrative expenses. 38 (x) Case management expenses. 39 (xi) Any other activities consistent with the 40 transportation related elements of the welfare-to-work 41 program. 42 (3) The department shall give high priority to providing 43 financial assistance under this subsection as match for 44 Federal funding to support projects with similar purposes and 45 eligible uses, including the Federal Job Access Reverse 46 Commute and New Freedoms programs. 47 (e) Technical assistance and demonstration.--The department 48 is authorized to provide financial assistance under this section 49 for technical assistance, research and short-term demonstration 50 projects. All of the following shall apply: 51 (1) A local transportation organization or an agency or 52 instrumentality of the Commonwealth may apply to the 53 department for financial assistance under this subsection. 54 (2) Financial assistance provided under this subsection 55 may be used for reimbursement for any approved operating or 56 capital costs related to technical assistance and 57 demonstration program projects. Financial assistance for 58 short-term demonstration projects may be provided at the 59 department's discretion on an annual basis based on the level HB1590A02073 - 20 -
1 of financial commitment provided by the award recipient to 2 provide ongoing future funding for the project as soon as the 3 project meets the criteria established by the department and 4 the award recipient. Financial assistance for this purpose 5 shall not be provided for more than three fiscal years. 6 Financial assistance may be provided to meet any short-term 7 emergency need that requires immediate attention and cannot 8 be funded through other sources. 9 (3) Financial assistance under this subsection provided 10 to a local transportation organization shall be matched by 11 local or private cash funding in an amount not less than 3 12 1/3% of the amount of the financial assistance being 13 provided. The sources of funds for the local match shall be 14 subject to the requirements of section 1513(d) (relating to 15 operating program). 16 § 1517. Program oversight and administration. 17 The department is authorized to use available money in the 18 fund to cover the costs incurred by the department in 19 administering all of its public passenger transportation funding 20 programs, including those established under this chapter, and 21 incurred in the carrying out of its responsibilities with 22 respect to the programs. 23 § 1518. Retroactive authority. 24 (a) Date of project.--Financial assistance may be awarded 25 under this chapter by the department with reference to an 26 appropriate project irrespective of when it was first commenced 27 or considered and regardless of whether costs with respect to 28 the project were incurred prior to the time the financial 29 assistance is applied for or provided. 30 (b) Capital projects.-- 31 (1) For capital projects, the applicant must obtain 32 approval in writing from the department prior to incurring 33 any expenses for which the applicant may later seek 34 reimbursement. 35 (2) Notwithstanding paragraph (1), approval by the 36 department shall not constitute an approval of the 37 applicant's underlying request for financial assistance. 38 (3) By providing preapproval under this subsection, the 39 department may recognize any local funds already expended as 40 satisfying the local match requirement if and when the 41 applicant's application is approved. 42 Section 2.2. Sections 1713(a) and 1715(a) of Title 74 are 43 amended to read: 44 § 1713. Appointment of board members. 45 (a) Appointment.--Except as provided in subsection (d) with 46 respect to the continuation in office of members of the board of 47 any authority established under the former provisions of Article 48 III of the act of January 22, 1968 (P.L.42, No.8), known as the 49 Pennsylvania Urban Mass Transportation Law, or the former 50 provisions of Chapter 15 (relating to metropolitan 51 transportation authorities), at any time after the effective 52 date of this chapter: 53 (1) The Governor may appoint as a member of the board 54 one person who may be an ex officio appointee from among the 55 various officials in this Commonwealth and whose term as a 56 board member shall run concurrently with that of his 57 Commonwealth position, if any, or the term of the appointing 58 Governor, whichever is shorter. 59 (2) The Majority Leader and the Minority Leader of the HB1590A02073 - 21 -
1 Senate and the Majority Leader and the Minority Leader of the 2 House of Representatives may each appoint one person to serve 3 as a board member, whose term shall be concurrent with the 4 term and who shall serve at the pleasure of the appointing 5 legislative leader. 6 (3) The county commissioners or the county council in 7 each county and, in any county of the first class containing 8 a city of the first class, the mayor, with the approval of 9 the city council, may appoint [two] persons from each county 10 to serve as board members[.] as follows: 11 (i) Two members for counties which contribute less 12 than 7.5% of total local match required for State 13 operating financial assistance. 14 (ii) Three members for counties which contribute at 15 least 7.5% but less than 25% of total local match 16 required for State operating financial assistance. 17 (iii) Four members for counties which contribute at 18 least 25% of total local match required for State 19 operating financial assistance. 20 (4) On the effective date of this paragraph, any county 21 which has a member of the board in excess of the number 22 allotted under paragraph (3) will lose an appointment to the 23 board upon the expiration of the term of the member whose 24 term expires next, or if there is a vacancy, may not appoint 25 a person to fill the vacancy. 26 (5) The Secretary of Budget. 27 (6) The Secretary of Transportation or his deputy 28 secretary shall be nonvoting members. 29 (7) Each member appointed by a county shall have a 30 professional background expertise or substantial experience 31 in one or more of the following areas: 32 (i) Transportation. 33 (ii) Finance. 34 (iii) Law. 35 (iv) Tourism. 36 (v) Ridership community groups. 37 (vi) Land use and urban planning. 38 * * * 39 § 1715. Meetings, quorum, officers and records. 40 (a) Meetings.--Regular meetings of the board shall be held 41 in the metropolitan area at least once in each calendar month 42 except July or August, the time and place of the meetings to be 43 fixed by the board. A majority of the board shall constitute a 44 quorum for the transaction of business. All action of the board 45 shall be by resolution, and the affirmative vote of a majority 46 of all the members shall be necessary for the adoption of any 47 resolution. No action by the board to which an express objection 48 has been made, under this section, by a board member or members 49 representing a county or counties having one-third or more of 50 the population of the metropolitan area, as determined by the 51 most recent decennial census, shall be carried unless supported 52 at a subsequent regular meeting of the board by the votes of at 53 least [three-quarters] 70% of the voting membership of the 54 board. In case of disagreement between members representing the 55 same county, each member shall be deemed to represent [one-half] 56 an equal proportion of the population of that county. 57 * * * 58 Section 2.3. Title 74 is amended by adding a chapter to 59 read: HB1590A02073 - 22 -
1 CHAPTER 81 2 TURNPIKE 3 Sec. 4 8101. Scope of chapter. 5 8102. Definitions. 6 8103. (Reserved). 7 8104. Status of turnpike revenue bonds, notes or other 8 obligations. 9 8105. Commission. 10 8106. Exercise of commission powers. 11 8107. Commission powers and duties. 12 8108. Expenses and bonding of commission members. 13 8109. Acquisition of property rights by commission. 14 8110. Procedural requirements of acquisition. 15 8111. Entry and possession of property condemned. 16 8112. Issuance of turnpike revenue bonds or other 17 obligations. 18 8113. Obligation proceeds restricted and lien created. 19 8114. Trust indenture authorized. 20 8115. Commission and obligations tax exempt. 21 8116. Collection and disposition of tolls and other revenue. 22 8116.1. Electronic toll collection. 23 8117. Refunding bonds. 24 8118. Rights of obligation holders and trustees. 25 8119. Authority granted to secretary. 26 8120. Construction of chapter. 27 § 8101. Scope of chapter. 28 This chapter relates to turnpike organization, extension and 29 toll road conversion. 30 § 8102. Definitions. 31 The following words and phrases when used in this chapter 32 shall have the meanings given to them in this section unless the 33 context clearly indicates otherwise: 34 "Commission." The Pennsylvania Turnpike Commission. 35 "Cost of the turnpikes." The term includes the cost of: 36 (1) Constructing turnpikes, connecting roads, storm 37 water management systems, tunnels and bridges. 38 (2) Lands, property rights, rights-of-way, easements and 39 franchises acquired by purchase or other means deemed 40 necessary or convenient for construction. 41 (3) Machinery and equipment, financing charges and 42 interest prior to construction, during construction and for 43 one year after completion of construction. 44 (4) Traffic estimates, engineering and legal expenses, 45 plans, specifications, surveys, cost and revenue estimates, 46 other expenses necessary or incident to determining the 47 feasibility or practicability of the enterprise, 48 administrative and legal expense and other expenses as may be 49 necessary or incident to financing authorized in this 50 chapter. 51 (5) Condemnation or other means of acquisition of 52 property necessary for the construction and operation. 53 (6) An obligation or expense contracted for by the 54 commission with the department or with the United States or a 55 Federal agency for any of the following: 56 (i) Traffic surveys, preparation of plans and 57 specifications, supervision of construction and other 58 engineering and administrative and legal services and 59 expenses in connection with the construction of the HB1590A02073 - 23 -
1 turnpike or any of the connecting roads, storm water 2 management systems, tunnels and bridges. 3 (ii) Costs of reimbursing the Federal Government 4 pursuant to the mandates of the Federal law for Federal 5 funds expended for interstate or other highways which are 6 to be made part of the turnpike system pursuant to this 7 chapter. 8 "Department." The Department of Transportation of the 9 Commonwealth. 10 "Electronic toll collection." A system of collecting tolls 11 or charges that is capable of charging an account holder for the 12 prescribed toll by electronic transmission of information 13 between a device on a vehicle and a device in a toll lane at a 14 toll collection facility. 15 "Lessee." A person, corporation, firm, partnership, agency, 16 association or organization that rents, leases or contracts for 17 the use of a vehicle and has exclusive use of the vehicle for 18 any period of time. 19 "Lessor." A person, corporation, firm, partnership, agency, 20 association or organization engaged in the business of renting 21 or leasing vehicles to any lessee under a rental agreement, 22 lease or other agreement under which the lessee has the 23 exclusive use of the vehicle for any period of time. 24 "Operator." An individual that uses or operates a vehicle 25 with or without permission of the owner. 26 "Owner." Except as provided under section 8116.1(e) 27 (relating to electronic toll collection), an individual, 28 copartnership, association or corporation having title or 29 interest in a property right, easement or franchise authorized 30 to be acquired under this chapter. 31 "Secretary." The Secretary of Transportation of the 32 Commonwealth. 33 "Toll road conversion." The inclusion within the turnpike 34 system and the imposition of tolls on the system of a highway 35 that is presently toll free. 36 "Turnpikes." Any of the following: 37 (1) The turnpike, turnpike extensions and turnpike 38 improvements. 39 (2) Toll-free roads to be converted to toll roads under 40 this chapter. 41 (3) Related storm water management systems, tunnels and 42 bridges, property rights, easements and franchises deemed 43 necessary or convenient for the construction or the operation 44 of the turnpike, turnpike extension, turnpike improvement and 45 toll-free roads. 46 "Vehicle." The term as it is defined under 75 Pa.C.S. § 102 47 (relating to definitions). 48 "Violation enforcement system." A vehicle sensor, placed in 49 a location to work in conjunction with a toll collection 50 facility, which automatically produces a videotape or 51 photograph, microphotograph or other recorded image of the rear 52 portion of each vehicle at the time the vehicle is used or 53 operated in violation of the toll collection regulations. The 54 term includes any other technology which identifies a vehicle by 55 photographic, electronic or other method. 56 § 8103. (Reserved). 57 § 8104. Status of turnpike revenue bonds, notes or other 58 obligations. 59 (a) General rule.--The turnpike revenue bonds, notes or HB1590A02073 - 24 -
1 other obligations issued under the provisions of this chapter 2 shall not be deemed to be a debt of the Commonwealth or a pledge 3 of the faith and credit of the Commonwealth, but bonds, notes or 4 other obligations shall be payable solely from the revenues of 5 the commission, including tolls, or from funds as may be 6 available to the commission for that purpose. 7 (b) Statement required.--All bonds, notes or other 8 obligations shall contain a statement on their face that the 9 Commonwealth is not obligated to pay the same or the interest 10 thereon except from revenues of the commission, including tolls, 11 or from funds as may be available to the commission for that 12 purpose and that the faith and credit of the Commonwealth is not 13 pledged to the payment of the principal or interest of the 14 bonds, notes or other obligations. 15 (c) Pledge of Commonwealth prohibited.--The issuance of 16 turnpike revenue bonds, notes or other obligations under the 17 provisions of this chapter shall not directly or indirectly or 18 contingently obligate the Commonwealth to levy or to pledge any 19 form of taxation or to make any appropriation for their payment. 20 § 8105. Commission. 21 (a) Members.-- 22 (1) Notwithstanding any other law to the contrary, 23 vacancies in the membership of the commission on or after the 24 effective date of this subsection shall be filled as follows: 25 (i) The first vacancy shall be filled by a member to 26 be appointed by the Majority Leader of the Senate. 27 (ii) The second vacancy shall be filled by a member 28 to be appointed by the Minority Leader of the Senate. 29 (iii) The succeeding two vacancies shall be filled 30 by members to be appointed by the Governor. 31 (2) Paragraph (1) shall apply to a vacancy on the 32 commission which has occurred for any reason, but only as to 33 a member serving on the effective date of this subsection. 34 (3) Notwithstanding any other law to the contrary, the 35 Majority Leader of the House of Representatives and the 36 Minority Leader of the House of Representatives shall each 37 appoint one additional member to serve on the commission. 38 (4) A vacancy occurring during the term of a member 39 appointed in accordance with this subsection shall be filled 40 in a like manner only for the unexpired appointive term of 41 the member whose office has become vacant. 42 (5) Members appointed under the provisions of this 43 subsection shall serve for a term of four years. Upon the 44 expiration of this term, an appointed member may continue to 45 hold office for 90 days or until a successor shall be duly 46 appointed and qualified, whichever period is shorter, but 47 shall not continue to hold office thereafter unless 48 reappointed in accordance with law. 49 (6) Vacancies filled under paragraph (1) and subsequent 50 appointments made to the commission shall be without the 51 advice and consent of the Senate. 52 (a.1) Advisory committee.-- 53 (1) There is hereby established a Pennsylvania Turnpike 54 Advisory Committee, which shall be composed of the following 55 members: 56 (i) The Secretary of Community and Economic 57 Development. 58 (ii) The Secretary of Revenue. 59 (iii) The State Treasurer. HB1590A02073 - 25 -
1 (iv) The chairman and minority chairman of the 2 Transportation Committee of the Senate. 3 (v) The chairman and minority chairman of the 4 Transportation Committee of the House of Representatives. 5 (vi) Eight members of the public representing the 6 area of concern specified who shall have extensive 7 experience and knowledge of transportation activities 8 throughout this Commonwealth to be appointed by the 9 Governor as follows: 10 (A) Two representatives of the engineering 11 community who are licensed and registered pursuant to 12 the act of May 23, 1945 (P.L.913, No.367), known as 13 the Engineer, Land Surveyor and Geologist 14 Registration Law. 15 (B) Two representatives from the highway 16 construction industry who have at least five years of 17 highway construction and planning experience. 18 (C) Two representatives from organized labor 19 unions. 20 (D) One member who shall be a certified public 21 accountant. 22 (E) One member from the general public with at 23 least five years of experience in transportation 24 finance and infrastructure. 25 (2) Each of the members of the committee may designate a 26 representative to serve in his stead. A member who designates 27 a representative shall notify the chairman in writing of the 28 designation. 29 (3) The term of all members of the committee appointed 30 by the Governor shall be for three years. Any member of the 31 committee may be reappointed for no more than two full 32 successive terms. Any person appointed to fill a vacancy 33 occurring prior to the expiration of the term to which his 34 predecessor was appointed shall serve only for the unexpired 35 term. Each member shall serve until the appointment of a 36 successor. 37 (4) (i) The committee shall meet at least four times 38 every 12 months, but may hold such additional meetings as 39 are called by the chairman. The chairman shall provide 40 notice at least 14 days in advance for regular meetings 41 and provide a minimum of three days' notice for special 42 meetings. A majority of the appointed members shall 43 constitute a quorum for the conduct of business. 44 (ii) Minutes of meetings shall be prepared by the 45 secretary and filed with the committee and distributed to 46 all members. All records shall be a matter of public 47 record. 48 (iii) The public members of the committee shall be 49 allowed reasonable per diem expenses as established and 50 paid for by the commission. The commission shall provide 51 appropriate staff support to enable the committee to 52 properly carry out its functions. 53 (5) The committee shall have the power and duty to 54 consult and advise the Pennsylvania Turnpike Commission in 55 assisting in developing, operating and financing tolled 56 interstate systems within this Commonwealth in a timely, 57 efficient and cost-effective manner. Specifically, the 58 committee shall have the authority to conduct a study on the 59 feasibility of instituting toll collections on major HB1590A02073 - 26 -
1 interstates that pass through the State. 2 (6) The committee shall submit an annual report of its 3 deliberations and conclusions to the Governor and members of 4 the General Assembly by November 30 of each year. 5 (7) The Governor shall appoint one member of the 6 committee as chairperson. The members of the committee shall 7 annually elect a vice chairperson, a secretary and a 8 treasurer from among the members appointed to the committee. 9 (d) Secretary of Transportation.--The provisions of 10 subsection (a.1) shall not apply to the appointment of the 11 secretary who shall continue to be appointed and to serve as a 12 member of the commission ex officio in accordance with law. 13 (e) Chairman.--A majority of the members of the commission 14 shall elect a member of the commission to serve as chairman. 15 Upon the appointment and qualification of any new member to 16 serve on the commission, the office of chairman, and the 17 positions of all other officers created by law, shall be deemed 18 vacant and a new chairman and other officers shall be elected by 19 a majority of the members of the commission. 20 (f) Actions by the commission.--Notwithstanding any other 21 law, court decision, precedent or practice to the contrary, any 22 and all actions by or on behalf of the commission shall be taken 23 solely upon the approval of a majority of the members to the 24 commission. A majority of the members of the commission shall 25 mean five members of the commission. The term "actions by or on 26 behalf of the commission" means any action whatsoever of the 27 commission, including, but not limited to, the hiring, 28 appointment, removal, transfer, promotion or demotion of any 29 officers and employees; the retention, use or remuneration of 30 any advisors, counsel, auditors, architects, engineers or 31 consultants; the initiation of any legal action; the making of 32 any contracts, leases, agreements, bonds, notes or covenants; 33 the approval of requisitions, purchase orders, investments and 34 reinvestments; and the adoption, amendment, revision or 35 rescission of any rules and regulations, orders or other 36 directives. The chairman, vice chairman or any other officer or 37 employee of the commission may take no action by or on behalf of 38 the commission except as expressly authorized by a majority of 39 the members of the commission. 40 (g) Compensation.--The annual salary of the Chairman of the 41 Pennsylvania Turnpike Commission shall be $28,500, and the 42 annual salary of the remaining members of the Pennsylvania 43 Turnpike Commission shall be $26,000. These salaries shall be 44 paid in equal installments every other week. 45 § 8106. Exercise of commission powers. 46 The exercise by the commission of the powers conferred by 47 this chapter in the construction, operation and maintenance of 48 the turnpikes and in effecting toll road conversions shall be 49 deemed and held to be an essential governmental function of the 50 Commonwealth. 51 § 8107. Commission powers and duties. 52 (a) Powers and duties of commission.--The commission may: 53 (1) Maintain a principal office at a place designated by 54 the commission. 55 (2) Contract and be contracted within its own name. 56 (3) Sue and be sued in its own name, plead and be 57 impleaded. Any civil action against the commission shall be 58 brought only in the courts in which actions may be brought 59 against the Commonwealth. HB1590A02073 - 27 -
1 (4) Have an official seal. 2 (5) Make necessary rules and regulations for its own 3 government and in control of traffic. 4 (6) Acquire, hold, accept, own, use, hire, lease, 5 exchange, operate and dispose of personal property, real 6 property and interests in real property and make and enter 7 into all contracts and agreements necessary or incidental to 8 the performance of its duties and the execution of its powers 9 under this chapter and employ engineering, traffic, 10 architectural and construction experts and inspectors, 11 attorneys and other employees as may in its judgment be 12 necessary and fix their compensation. 13 (7) (i) Provide grade separations at its own expense 14 with respect to all public roads, State highways and 15 interstate highways intersected by the turnpikes and to 16 change and adjust the lines and grades thereof so as to 17 accommodate the same to the design for grade separation. 18 (ii) The damages incurred in changing and adjusting 19 the lines and grades of public roads, State highways and 20 interstate highways shall be ascertained and paid by the 21 commission in accordance with 26 Pa.C.S. (relating to 22 eminent domain). 23 (iii) If the commission shall find it necessary to 24 provide a grade separation or change the site of any 25 portion of any interstate highway, State highway or 26 public road, or vacate the same, the commission shall 27 cause it to be reconstructed and restored at the 28 commission's expense on the most favorable location and 29 in as satisfactory a manner as the original road or 30 vacate it as the case may be. 31 (iv) The method of acquiring the right-of-way and 32 determining damages incurred in changing the location of 33 or vacating the road, State highway or interstate highway 34 shall be ascertained and paid for in accordance with 26 35 Pa.C.S. 36 (8) Petition the court of common pleas of the county in 37 which any public road or part thereof is located and affected 38 by the location of the turnpikes, for the vacation, 39 relocation or supply of the same or any part thereof with the 40 same force and effect as is now given by existing laws to the 41 inhabitants of any township or the county, and the 42 proceedings upon petition, whether for the appointment of 43 viewers or otherwise, shall be the same as provided by 44 existing law for similar proceedings upon the petitions. 45 (9) Have all of the powers and perform all the duties 46 prescribed by the act of May 21, 1937 (P.L.774, No.211), 47 referred to as the Pennsylvania Turnpike Commission Act. 48 (b) Maintenance to be paid out of tolls.-- 49 (1) The turnpike extensions and improvements and the 50 conversion of toll-free roads to toll roads when completed 51 and open to traffic shall be maintained and repaired by and 52 under the control of the commission. 53 (2) All charges and costs for the maintenance and 54 repairs actually expended by the commission shall be paid out 55 of tolls. 56 (3) The turnpike, the turnpike extensions and 57 improvements and the toll-free roads converted to toll roads 58 shall also be policed and operated by a force of police, toll 59 takers and other operating employees as the commission may in HB1590A02073 - 28 -
1 its discretion employ. 2 § 8108. Expenses and bonding of commission members. 3 (a) Payment of expenses.--All compensation and salaries and 4 all expenses incurred in carrying out the provisions of this 5 chapter shall be paid solely from funds provided under the 6 authority of this chapter, and no liability or obligation shall 7 be incurred under this chapter beyond the extent to which money 8 shall have been provided under the authority of this chapter. 9 (b) No additional bond required.--The issuance of any 10 turnpike revenue bonds, notes or other obligations under the 11 provisions of this chapter shall not cause any member of the 12 commission to be required to execute a bond that a member of the 13 commission is not otherwise required to execute. 14 § 8109. Acquisition of property rights by commission. 15 (a) Condemnation.--The commission may condemn, pursuant to 16 26 Pa.C.S. (relating to eminent domain), any lands, interests in 17 lands, property rights, rights-of-way, franchises, easements and 18 other property deemed necessary or convenient for the 19 construction and efficient operation of the turnpikes and the 20 toll road conversions or necessary in the restoration or 21 relocation of public or private property damaged or destroyed. 22 (b) Purchase.-- 23 (1) The commission may acquire by purchase, whenever it 24 shall deem the purchase expedient, or otherwise accept if 25 dedicated to it, any lands, interests in lands, property 26 rights, rights-of-way, franchises, easements and other 27 property deemed necessary or convenient for the construction 28 and efficient operation of the turnpikes and toll road 29 conversions or necessary in the restoration of public or 30 private property damaged or destroyed, whether the property 31 has been previously condemned or otherwise, upon terms and at 32 a price as may be considered by the commission to be 33 reasonable and can be agreed upon between the commission and 34 the owner thereof and to take title thereto in the name of 35 the commission. 36 (2) The net proceeds of the purchase price payable to a 37 municipality or the department for any real property or 38 interest therein obtained by the commission pursuant to this 39 chapter, less the cost of retiring any bonded indebtedness on 40 the property or interest, shall be used exclusively, in the 41 case of a municipality, for road-related and bridge-related 42 expenses and, in the case of the department, for highway and 43 bridge construction, reconstruction and maintenance in the 44 same engineering and maintenance district in which the 45 property is located. 46 § 8110. Procedural requirements of acquisition. 47 (a) Title.--Title to any property condemned by the 48 commission shall be taken in the name of the commission. 49 (b) Entry.-- 50 (1) In addition to any others powers set forth in this 51 chapter, the commission and its authorized agents and 52 employees may enter upon any lands, waters and premises in 53 this Commonwealth for the purpose of making surveys, 54 soundings, drillings and examinations, as it may deem 55 necessary or convenient for the purpose of this chapter. 56 (2) The entry shall not be deemed a trespass, nor shall 57 an entry for the purposes be deemed an entry under any 58 condemnation proceedings which may be then pending. 59 (3) The commission shall make reimbursement for any HB1590A02073 - 29 -
1 actual damages resulting to the lands, waters and premises as 2 a result of the activities. 3 (c) Restoration of property.--Any public or private property 4 damaged or destroyed in carrying out the powers granted by this 5 chapter shall be restored or repaired and placed in its original 6 condition as nearly as practicable or adequate compensation made 7 for the property out of funds provided under the authority of 8 this chapter. 9 (d) Powers of public bodies.--Notwithstanding any other 10 provision of law to the contrary, a political subdivision and a 11 public agency and commission of the Commonwealth may lease, 12 lend, dedicate, grant, convey or otherwise transfer to the 13 commission, upon its request, upon terms and conditions as the 14 proper authorities of the political subdivisions or public 15 agencies and commissions of the Commonwealth may deem reasonable 16 and fair and without the necessity for any advertisement, order 17 of court or other action or formality, other than the regular 18 and formal action of the authorities concerned, any real 19 property which may be necessary or convenient to the 20 effectuation of the authorized purposes of the commission, 21 including public roads and other real property already devoted 22 to public use. 23 § 8111. Entry and possession of property condemned. 24 Whenever the commission has condemned any lands, rights, 25 rights-of-way, easements and franchises, or interests therein, 26 as provided in this chapter, the commission may proceed to 27 obtain possession in the manner provided by 26 Pa.C.S. (relating 28 to the eminent domain). 29 § 8112. Issuance of turnpike revenue bonds or other 30 obligations. 31 (a) Authorization.-- 32 (1) A bond must be authorized by resolution of the 33 commission. The resolution may specify all of the following: 34 (i) Series. 35 (ii) Date of maturity not exceeding 40 years from 36 date of issue. 37 (iii) Interest. 38 (iv) Denomination. 39 (v) Form, either coupon or fully registered without 40 coupons. 41 (vi) Registration, exchangeability and 42 interchangeability privileges. 43 (vii) Medium of payment and place of payment. 44 (viii) Terms of redemption not exceeding 105% of the 45 principal amount of the bond. 46 (ix) Priorities in the revenues or receipts of the 47 commission. 48 (2) A bond must be signed by or shall bear the facsimile 49 signature of such officers as the commission determines. 50 Coupon bonds must have attached interest coupons bearing the 51 facsimile signature of the treasurer of the commission as 52 prescribed in the authorizing resolution. A bond may be 53 issued and delivered notwithstanding that one or more of the 54 signing officers or the treasurer has ceased to be an officer 55 when the bond is actually delivered. A bond must be 56 authenticated by an authenticating agent, a fiscal agent or a 57 trustee, if required by the authorizing resolution. 58 (3) A bond may be sold at public or private sale for a 59 price determined by the commission. HB1590A02073 - 30 -
1 (4) Pending the preparation of a definitive bond, 2 interim receipts or temporary bonds with or without coupons 3 may be issued to the purchaser and may contain terms and 4 conditions as the commission determines. 5 (b) Provisions.--A resolution authorizing a bond may contain 6 provisions which shall be part of the contract with the 7 bondholder as to the following: 8 (1) Pledging the full faith and credit of the commission 9 but not of the Commonwealth or any political subdivision for 10 the bond or restricting the obligation of the commission to 11 all or any of the revenue of the commission from all or any 12 projects or properties. 13 (2) The construction, financing, improvement, operation, 14 extension, enlargement, maintenance and repair for the 15 payment of the costs of the turnpikes and the toll road 16 conversions, including the reconstruction of the converted 17 roads as provided for in this chapter and the repayment to 18 the Federal Treasury of any funds so required to be repaid 19 pursuant to any special legislation passed by the Congress of 20 the United States authorizing the conversion of toll-free 21 roads to toll roads, the financing for insurance reserves and 22 the duties of the commission with reference to these matters. 23 (3) Terms and provisions of the bond. 24 (4) Limitations on the purposes to which the proceeds of 25 the bond or other financing may be applied. 26 (5) Rate of tolls and other charges for use of the 27 facilities of or for the services rendered by the commission. 28 (6) The setting aside, regulation and disposition of 29 reserves and sinking funds. 30 (7) Limitations on the issuance of additional bonds. 31 (8) Terms and provisions of any deed of trust or 32 indenture securing the bond or under which any deed of trust 33 or indenture may be issued. 34 (9) Other additional agreements with the holder of the 35 bond. 36 (c) Deeds of trust.--The commission may enter into any deed 37 of trust, indenture or other agreement with any bank or trust 38 company or other person in the United States having power to 39 enter into such an arrangement, including any Federal agency, as 40 security for a bond and may assign and pledge all or any of the 41 revenues or receipts of the commission under such deed, 42 indenture or agreement. The deed of trust, indenture or other 43 agreement may contain provisions as may be customary in such 44 instruments or as the commission may authorize, including 45 provisions as to the following: 46 (1) Construction, financing, improvement, operation, 47 maintenance and repair for the payment of the costs of the 48 turnpikes and the toll road conversions, including the 49 reconstruction of the converted roads as provided for in this 50 chapter and the repayment to the Federal Treasury of any 51 funds so required to be repaid pursuant to any special 52 legislation passed by the Congress of the United States 53 authorizing the conversion of toll-free roads to toll roads, 54 financing for insurance reserves and the duties of the 55 commission with reference to these matters. 56 (2) Application of funds and the safeguarding of funds 57 on hand or on deposit. 58 (3) Rights and remedies of trustees and bondholders, 59 including restrictions upon the individual right of action of HB1590A02073 - 31 -
1 a bondholder. 2 (4) Terms and provisions of the bond or the resolution 3 authorizing the issuance of the bond. 4 (d) Negotiability.--A bond shall have all the qualities of 5 negotiable instruments under 13 Pa.C.S. Div. 3 (relating to 6 negotiable instruments). 7 § 8113. Obligation proceeds restricted and lien created. 8 All money received from any bonds, notes or other obligations 9 issued under this chapter shall be applied solely to the payment 10 of the cost of the turnpike, the turnpike extensions and 11 improvements and the toll road conversions, including the 12 reconstruction of the converted roads as provided for in this 13 chapter and the repayment to the Federal Treasury of any funds 14 so required to be repaid pursuant to any special legislation 15 passed by the Congress of the United States authorizing the 16 conversion of toll-free roads to toll roads or to the 17 appurtenant fund. There is created and granted a lien upon the 18 money, until so applied, in favor of holders of the bonds, notes 19 or other obligations or the trustee provided for in this chapter 20 in respect of the bonds, notes or other obligations. 21 § 8114. Trust indenture authorized. 22 (a) Security for bonds.--In the discretion of the 23 commission, the bonds, notes or other obligations may be secured 24 by a trust indenture by and between the commission and a 25 corporate trustee, which may be any trust company or bank having 26 the powers of a trust company, within this Commonwealth. The 27 trust indenture may pledge or assign tolls and revenue to be 28 received but shall not convey or mortgage the Pennsylvania 29 Turnpike System, including the turnpikes and toll road 30 conversions provided for by this chapter. 31 (b) Rights of bondholders.--Either the resolution providing 32 for the issuance of the bonds, notes or other obligations or the 33 trust indenture may contain provisions for protecting and 34 enforcing the rights and remedies of the bondholders or holders 35 of notes or other obligations as may be reasonable and proper 36 and not in violation of law, including covenants setting forth 37 the duties of the commission in relation to the acquisition of 38 properties and the construction, maintenance, operation and 39 repair and insurance of the turnpikes, and the custody, 40 safeguarding and application of all money. It shall be lawful 41 for any bank or trust company incorporated under the laws of 42 this Commonwealth to act as a depository of the proceeds of 43 bonds, notes or other obligations or revenues and to furnish the 44 indemnity bonds or to pledge the securities as may be required 45 by the commission. The trust indenture may set forth the rights 46 and remedies of the bondholders or holders of notes or other 47 obligations and of the trustee and may restrict the individual 48 right of action of bondholders or holders of notes or other 49 obligations as is customary in trust indentures securing bonds, 50 debentures of corporations, notes or other obligations. In 51 addition to the foregoing, the trust indenture may contain other 52 provisions as the commission may deem reasonable and proper for 53 the security of bondholders or holders of notes or other 54 obligations. All expenses incurred in carrying out the trust 55 indenture may be treated as part of the cost of maintenance, 56 operation and repair of the turnpikes and toll road conversions 57 provided for by this chapter. 58 § 8115. Commission and obligations tax exempt. 59 The accomplishment by the commission of the authorized HB1590A02073 - 32 -
1 purposes stated in this chapter being for the benefit of the 2 people of this Commonwealth and for the improvement of their 3 commerce and prosperity, in which accomplishment the commission 4 will be performing essential governmental functions, the 5 commission shall not be required to pay any taxes or assessments 6 on any property acquired or used by it for the purposes provided 7 in this chapter, and the bonds, notes or other obligations 8 issued by the commission, their transfer and the income 9 therefrom, including any profits made on the sale thereof, shall 10 at all times be free from taxation within this Commonwealth. 11 § 8116. Collection and disposition of tolls and other revenue. 12 (a) Establishment and changes in toll amounts.--Subject to 13 the terms of any trust indenture entered into by the commission, 14 any resolution authorizing the issuance of any bonds, notes or 15 other obligations of the commission, the commission is 16 authorized: to fix and to revise tolls for the use of the 17 Pennsylvania Turnpike System and the different parts or sections 18 of the system, including the turnpike, the turnpike extensions 19 and improvements and the toll road conversions authorized by 20 this chapter: to charge and collect the tolls; to contract with 21 any person, partnership, association or corporation desiring the 22 use of any part thereof, including the right-of-way adjoining 23 the paved portion, for placing thereon telephone, telegraph, 24 electric light or power lines, gas stations, garages, stores, 25 hotels, restaurants and advertising signs, or for any other 26 purpose, except for tracks for railroad or railway use; and to 27 fix the terms, conditions, rents and rates of charges for use. 28 Tolls shall be fixed and adjusted as to provide funds at least 29 sufficient with other revenues of the Pennsylvania Turnpike 30 System, if any, to pay: 31 (1) the cost of constructing, maintaining, repairing and 32 operating the Pennsylvania Turnpike System and the different 33 parts and sections of the system; and 34 (2) any bonds, notes or other obligations and the 35 interest thereon of the commission, and all sinking fund 36 requirements of the commission, and other requirements 37 provided for by any resolution authorizing the issuance of 38 the bonds, notes or other obligations by the commission, or 39 by any trust indenture to which the commission is a party, as 40 the same shall become due. 41 (b) Restrictions on toll revenue.--Tolls shall not be 42 subject to supervision or regulation by any other State 43 commission, board, bureau or agency. Subject to the terms of any 44 presently existing trust indenture entered into by the 45 commission and any presently existing resolution authorizing the 46 issuance of any bonds, notes or other obligations of the 47 commission, the tolls and all other revenue derived from the 48 Pennsylvania Turnpike System shall be set aside and pledged as 49 may be provided in any resolutions, trust indentures or any 50 other agreements that the commission may hereafter adopt or 51 hereafter enter into with respect to the issuance of bonds, 52 notes or other obligations of the commission. 53 § 8116.1. Electronic toll collection. 54 (a) Liability of owner.-- 55 (1) If an operator of a vehicle fails to pay the 56 prescribed toll at any location where tolls are collected by 57 means of electronic toll collection, the owner of the vehicle 58 shall be liable to the commission for failure of the operator 59 of the vehicle to comply with this section if the violation HB1590A02073 - 33 -
1 is evidenced by information obtained from a violation 2 enforcement system. 3 (2) If a violation of this section is committed, the 4 registration plate number of the vehicle as recorded by a 5 violation enforcement system shall establish an inference 6 that the owner of the vehicle was then operating the vehicle. 7 The inference shall be overcome if the owner does all of the 8 following: 9 (i) Testifies that the owner was not operating the 10 vehicle at the time of the violation. 11 (ii) Submits to an examination as to who at the time 12 was operating the vehicle. 13 (iii) Reveals the name and residence address, if 14 known, of the operator of the vehicle. 15 (3) If an action or proceeding is commenced in a county 16 other than that of the residence of the owner, a verified 17 written statement setting forth the facts prescribed under 18 paragraph (2)(i), (ii) and (iii) shall suffice to overcome 19 the inference. 20 (4) If the inference is overcome, the operator of the 21 vehicle may be held liable under this section for failure to 22 pay the prescribed toll in the same manner as if the operator 23 were the owner of the vehicle. 24 (b) Imposition of liability.--Liability under this section 25 shall be imposed upon an owner for a violation of this section 26 or the regulations of the commission occurring within the 27 territorial limits of this Commonwealth. If a violation is 28 committed as evidenced by a violation enforcement system, the 29 following shall apply: 30 (1) The commission or an authorized agent or employee 31 must prepare and mail a notice of violation as follows: 32 (i) The notice of violation must be sent by first 33 class mail to each person alleged to be liable as an 34 owner for a violation of this section. 35 (ii) The notice must be mailed at the address shown 36 on the vehicle registration or at the address of the 37 operator, as applicable. Notice must be mailed no later 38 than 60 days after: 39 (A) the alleged conduct; or 40 (B) the date the inference is overcome under 41 subsection (a)(2). 42 (iii) Personal service is not required. 43 (iv) The notice must contain all of the following: 44 (A) Information advising the person charged of 45 the manner and time in which the liability alleged in 46 the notice may be contested. 47 (B) A warning advising the person charged that 48 failure to contest in the manner and time provided 49 shall be deemed an admission of liability and that a 50 default judgment may be entered on the notice. 51 (1.1) A manual or automatic record of mailing prepared 52 in the ordinary course of business shall be prima facie 53 evidence of the mailing of notice. 54 (2) If an owner of a vehicle or an owner that is a 55 lessor of a vehicle receives a notice of violation under this 56 section for any time period during which the vehicle was 57 reported to a police department as having been stolen, it 58 shall be a defense to the allegation of liability that the 59 vehicle had been reported to the police as having been stolen HB1590A02073 - 34 -
1 prior to the time the violation occurred and that the vehicle 2 had not been recovered by the time of the violation. For 3 purposes of asserting the defense under this paragraph, it 4 shall be sufficient that a certified copy of the police 5 report on the stolen vehicle be sent by first class mail to 6 the commission within 30 days after receiving the original 7 notice of violation. Failure to send the information within 8 the time limit under this paragraph shall render the owner or 9 lessor liable for the penalty prescribed by this section. 10 (3) An owner that is a lessor of a vehicle as to which a 11 notice of violation was issued under paragraph (1) shall not 12 be liable for a violation if the owner sends to the 13 commission a copy of the rental, lease or other contract 14 document covering the vehicle on the date of the violation, 15 with the name and address of the lessee clearly legible to 16 the commission, within 30 days after receiving the original 17 notice of violation. Failure to send the information within 18 the time limit under this paragraph shall render the lessor 19 liable for the penalty prescribed by this section. If the 20 lessor complies with the provisions of this section, the 21 lessee of the vehicle on the date of the violation shall be 22 deemed to be the owner of the vehicle for purposes of this 23 section and shall be subject to liability for the penalty 24 under this section. 25 (4) A certified report or a facsimile report of an 26 authorized agent or employee of the commission reporting a 27 violation of this section or regulations of the commission 28 based upon the recorded information obtained from a violation 29 enforcement system shall be prima facie evidence of the facts 30 contained in the report and shall be admissible as an 31 official record kept in the ordinary course of business in 32 any proceeding charging a violation of this section or the 33 toll collection regulations of the commission. 34 (5) Notwithstanding any other provision of law, 35 videotapes, photographs, microphotographs, other recorded 36 images, written records, reports or facsimiles prepared 37 pursuant to this section shall be for the exclusive use of 38 the commission, its authorized agents, its employees and law 39 enforcement officials for the purpose of discharging duties 40 under this section and the regulations of the commission. The 41 information shall not be deemed a public record under the act 42 of June 21, 1957 (P.L.390, No.212), referred to as the Right- 43 to-Know Law. The information shall not be discoverable by 44 court order or otherwise; nor shall it be offered in evidence 45 in any action or proceeding which is not directly related to 46 a violation of this section, the regulations of the 47 commission or indemnification for liability imposed pursuant 48 to this section. The restrictions set forth in this 49 paragraph: 50 (i) shall not be deemed to preclude a court of 51 competent jurisdiction from issuing an order directing 52 that the information be provided to law enforcement 53 officials if the information is reasonably described and 54 is requested solely in connection with a criminal law 55 enforcement action; 56 (ii) shall not be deemed to preclude the exchange of 57 the information between any entities with jurisdiction 58 over or which operate an electronic toll collection 59 system in this Commonwealth or any other jurisdiction; HB1590A02073 - 35 -
1 and 2 (iii) shall not be deemed to prohibit the use of 3 information exclusively for the purpose of billing 4 electronic toll collection account holders, deducting 5 toll charges from the account of an account holder, 6 enforcing toll collection laws and related regulations or 7 enforcing the provisions of an account holder agreement. 8 (6) An imposition of liability under this section must 9 be based upon a preponderance of evidence. 10 (7) An imposition of liability pursuant to this section 11 shall not be deemed a conviction of an owner and shall not be 12 made part of the motor vehicle operating record of the person 13 upon whom the liability is imposed, nor shall it be 14 considered in the provision of motor vehicle insurance 15 coverage. 16 (8) An owner that admits, is found liable or fails to 17 respond to the notice of violation for a violation of this 18 section shall be civilly liable to the commission for all of 19 the following: 20 (i) Either: 21 (A) the amount of the toll evaded or attempted 22 to be evaded if the amount can be determined; or 23 (B) the maximum toll from the farthest point of 24 entry on the Pennsylvania Turnpike to the actual 25 point of exit if the amount of the toll evaded or 26 attempted to be evaded cannot be determined. 27 (ii) A reasonable administrative fee not to exceed 28 $35 per notification. 29 (9) Nothing in this section shall be construed to limit 30 the liability of the operator of a vehicle for a violation of 31 this section or of the regulations of the commission. 32 (c) Placement of electronic toll collection device.--An 33 electronic toll collection device which is affixed to the front 34 windshield of a vehicle in accordance with the regulations of 35 the commission shall not be deemed to constitute a violation of 36 75 Pa.C.S. § 4524 (relating to windshield obstructions and 37 wipers). 38 (d) Privacy of electronic toll collection account holder 39 information.-- 40 (1) Except as set forth paragraph (2), notwithstanding 41 any other provision of law, all of the following apply to 42 information kept by the commission, its authorized agents or 43 its employees which is related to the account of an 44 electronic toll collection system account holder: 45 (i) The information shall be for the exclusive use 46 of the commission, its authorized agents, its employees 47 and law enforcement officials for the purpose of 48 discharging their duties pursuant to this section and the 49 regulations of the commission. This subparagraph includes 50 names, addresses, account numbers, account balances, 51 personal financial information, vehicle movement records 52 and other information compiled from transactions with the 53 account holders. 54 (ii) The information shall not be deemed a public 55 record under the Right-to-Know Law, nor shall it be 56 discoverable by court order or otherwise or be offered in 57 evidence in any action or proceeding which is not 58 directly related to the discharge of duties under this 59 section, the regulations of the commission or a violation HB1590A02073 - 36 -
1 of an account holder agreement. 2 (2) Paragraph (1) shall not be deemed to do any of the 3 following: 4 (i) Preclude a court of competent jurisdiction from 5 issuing an order directing that the information be 6 provided to law enforcement officials if the information 7 is reasonably described and is requested solely in 8 connection with a criminal law enforcement action. 9 (ii) Preclude the exchange of the information 10 between any entities with jurisdiction over or which 11 operate an electronic toll collection system in this 12 Commonwealth or any other jurisdiction. 13 (iii) Prohibit the use of the information 14 exclusively for the purpose of billing electronic toll 15 collection account holders, deducting toll charges from 16 the account of an account holder, enforcing toll 17 collection laws and related regulations or enforcing the 18 provisions of an account holder agreement. 19 (e) Definition.--As used in this section, the term "owner" 20 means any person, corporation, firm, partnership, agency, 21 association, organization or lessor that, at the time a vehicle 22 is operated in violation of this section or regulations of the 23 commission: 24 (1) is the beneficial or equitable owner of the vehicle; 25 (2) has title to the vehicle; or 26 (3) is the registrant or coregistrant of the vehicle 27 registered with the department or a comparable agency of 28 another jurisdiction or uses the vehicle in its vehicle 29 renting or leasing business. The term includes a person 30 entitled to the use and possession of a vehicle subject to a 31 security interest in another person. 32 § 8117. Refunding bonds. 33 The commission is authorized to provide, by resolution, for 34 the issuance of turnpike revenue refunding bonds for the purpose 35 of refunding issued and outstanding turnpike revenue bonds, 36 notes or other obligations. Applicable provisions of this 37 chapter govern all of the following: 38 (1) Issuance of the turnpike revenue refunding bonds. 39 (2) Maturities and other details of the refunding bonds. 40 (3) Rights of the holders of the bonds. 41 (4) Duties of the Commonwealth and of the commission in 42 respect to the bonds. 43 § 8118. Rights of obligation holders and trustees. 44 (a) Scope.--This section applies to all of the following: 45 (1) A holder of: 46 (i) a bond, note or other obligation issued under 47 this chapter; or 48 (ii) a coupon attached to the bond, note or other 49 obligation. 50 (2) The trustee under an applicable trust indenture. 51 (b) Enforcement.--Subject to subsection (c), a person 52 referred to in subsection (a) may, by an action at law or in 53 equity, do all of the following: 54 (1) Protect and enforce rights granted under this 55 chapter or under the resolution or trust indenture. 56 (2) Enforce and compel performance of all duties 57 required by this chapter or by the resolution or trust 58 indenture to be performed by the commission or an officer of 59 the commission. This paragraph includes fixing, charging and HB1590A02073 - 37 -
1 collecting of tolls for the use of the turnpikes. 2 (c) Restriction.--Rights under this chapter may be 3 restricted by resolution passed before the issuance of the bond, 4 note or other obligation or by the trust indenture. 5 § 8119. Authority granted to secretary. 6 (a) Agreement with Federal Government.-- 7 (1) The secretary is authorized to enter into an 8 agreement with the United States Department of 9 Transportation, the Federal Highway Administration and any 10 other Federal agency to obtain Federal funds for projects for 11 resurfacing, restoring and rehabilitating toll roads in this 12 Commonwealth. The commission is authorized to use Federal 13 funds which may be available for toll roads only upon 14 approval of the secretary and only under the authority 15 granted under this section. 16 (2) (Reserved). 17 (b) Approval by department.--Contracts and agreements 18 relating to the construction of the turnpikes and connecting 19 tunnels and bridges must be approved by the department. 20 § 8120. Construction of chapter. 21 This chapter shall be regarded as supplemental and additional 22 to powers conferred by other statutes and shall not be regarded 23 as in derogation of any powers now existing and shall be 24 liberally construed to effect its purposes. 25 Section 2.4. Section 8901 of Title 75 is amended to read: 26 § 8901. Definitions. 27 The following words and phrases when used in this chapter 28 shall have the meanings given to them in this section unless the 29 context clearly indicates otherwise: 30 "Annual additional rent." That portion of the rent payable 31 to the Department of Transportation under section 8915.3(5) 32 (relating to lease of Interstate 80). 33 "Annual base rent." That portion of the rent payable to the 34 Department of Transportation under section 8915.3(4) (relating 35 to lease of Interstate 80). 36 "Annual surplus rent." That portion of the rent payable to 37 the Department of Transportation under section 8915.3(6) 38 (relating to lease of Interstate 80). 39 "Auditor General's certificate." The certificate issued by 40 the Auditor General within 180 days after the end of each fiscal 41 year of the Pennsylvania Turnpike Commission certifying all of 42 the following: 43 (1) The amount of the general reserve fund surplus for 44 the fiscal year. 45 (2) Interstate 80 savings for the fiscal year. 46 (3) After review of the commission's current ten-year 47 capital plan, that the transfer of the general reserve fund 48 surplus under section 8915.3 (relating to lease of Interstate 49 80) shall not impair the ability of the commission to meet 50 its obligations under the lease agreement or the commission's 51 ten-year capital plan. 52 "Commission." The Pennsylvania Turnpike Commission. 53 "Conversion date." The date the Pennsylvania Turnpike 54 Commission intends to assume control over Interstate 80 as set 55 forth in the conversion notice. 56 "Conversion notice." Written notice to the Secretary of 57 Transportation from the Pennsylvania Turnpike Commission 58 providing notice of its intent to assume control over Interstate 59 80 under section 8915.3(3) (relating to lease of Interstate 80). HB1590A02073 - 38 -
1 "Conversion period." A period of three years: 2 (1) which begins on the date of execution of the lease 3 agreement; and 4 (2) during which the Pennsylvania Turnpike Commission 5 may give the Department of Transportation conversion notice 6 or notice that the commission has exercised its option to 7 extend the conversion period pursuant to section 8915.3(2) 8 (relating to lease of Interstate 80). 9 "Fiscal year." The fiscal year of the Pennsylvania Turnpike 10 Commission. 11 "General reserve fund surplus." The amount which: 12 (1) is certified by the Auditor General in the Auditor 13 General's certificate as existing in the Pennsylvania 14 Turnpike Commission's general reserve fund on the last day of 15 the fiscal year; and 16 (2) is not required to be retained in the general 17 reserve fund pursuant to any financial documents, financial 18 covenants, insurance policies, liquidity policies or 19 agreements, swap agreements or rating agency requirements in 20 effect at the commission. 21 "Interstate 80 savings." An amount equal to the following: 22 (1) Prior to the conversion date, the amount shall be 23 zero. 24 (2) After the conversion date, the amount certified in 25 the Auditor General's certificate equal to $100,000,000, 26 increased by 4% for each year after the year of execution of 27 the lease agreement. 28 "Lease agreement." A lease agreement between the Department 29 of Transportation and the Pennsylvania Turnpike Commission which 30 shall include provisions setting forth the terms of the 31 conversion of Interstate 80 to a toll road. 32 "Scheduled annual commission contribution." The following 33 amounts: 34 (1) $700,000,000 in fiscal year 2007-2008. 35 (2) $750,000,000 in fiscal year 2008-2009. 36 (3) $800,000,000 in fiscal year 2009-2010. 37 (4) $800,000,000 increased by 2.5% for each fiscal year 38 after fiscal year 2009-2010. 39 Section 2.5. Section 8911 introductory paragraph of Title 75 40 is amended and the section is amended by adding a paragraph to 41 read: 42 § 8911. Improvement and extension authorizations. 43 In order to facilitate vehicular traffic within and across 44 this Commonwealth, the commission is hereby authorized and 45 empowered to construct, reconstruct, widen, expand, extend, 46 operate and maintain turnpike extensions and turnpike 47 improvements at such specific locations and according to such 48 schedule as shall be deemed feasible and approved by the 49 commission, together with connecting roads, storm water 50 management systems, interchanges, slip ramps, tunnels and 51 bridges, subject to the waiver of the Federal toll prohibition 52 provisions where applicable, as follows: 53 * * * 54 (10) Other slip ramps and interchanges as the commission 55 may determine. 56 Section 2.6. Sections 8912 introductory paragraph, 8913, 57 8914 introductory paragraph and 8915 introductory paragraph of 58 Title 75 are amended to read: 59 § 8912. Subsequent extension authorizations. HB1590A02073 - 39 -
1 The commission is also hereby authorized and empowered to 2 construct, reconstruct, widen, expand, extend, operate and 3 maintain further extensions and improvements of the turnpike at 4 such specific locations and according to such schedules as shall 5 be deemed feasible and which shall be approved by the 6 commission, subject to the waiver of the Federal toll 7 prohibition provisions where applicable, as follows: 8 * * * 9 § 8913. Additional subsequent extension authorizations. 10 Upon substantial completion of the turnpike extensions and 11 improvements set forth in sections 8911 (relating to improvement 12 and extension authorizations) and 8912 (relating to subsequent 13 extension authorizations), the commission is hereby authorized 14 and empowered to construct, reconstruct, widen, expand, extend, 15 operate and maintain further extensions and improvements of the 16 turnpike at such specific locations and according to such 17 schedules as shall be deemed feasible and which shall be 18 approved by the commission, subject to the waiver of the Federal 19 toll prohibition provisions where applicable, as follows: 20 construct from a point at or near Interstate Route 80 21 Interchange 23 at Milesburg southwesterly generally along U.S. 22 Route 220 to a connection with the existing U.S. Route 220 23 Expressway south of Bald Eagle. 24 § 8914. Further subsequent authorizations. 25 Upon completion of the turnpike extensions and improvements 26 set forth in sections 8911 (relating to improvement and 27 extension authorizations), 8912 (relating to subsequent 28 extension authorizations) and 8913 (relating to additional 29 subsequent extension authorizations), the commission is hereby 30 authorized and empowered to construct, reconstruct, widen, 31 expand, extend, operate and maintain further extensions and 32 improvements of the turnpike at such specific locations and 33 according to such schedules as shall be deemed feasible and 34 which shall be approved by the commission, subject to the waiver 35 of the Federal toll prohibition provisions where applicable, as 36 follows: 37 * * * 38 § 8915. Conversion to toll roads. 39 In order to facilitate vehicular traffic within and across 40 this Commonwealth, and [after] to facilitate the completion of 41 the turnpike extensions and improvements authorized in section 42 8911 (relating to improvement and extension authorizations), and 43 subject to prior legislative approval by the General Assembly 44 and the United States Congress, the commission is hereby 45 authorized and empowered to convert to toll roads such portions 46 of Pennsylvania's interstate highway system as may [be required 47 in order to] facilitate the completion of the turnpike 48 extensions and improvements authorized in sections 8912 49 (relating to subsequent extension authorizations), 8913 50 (relating to additional subsequent extension authorizations) and 51 8914 (relating to further subsequent authorizations) and to 52 operate and maintain such converted interstates as toll roads 53 upon the approval by the Congress of the United States of 54 America and the General Assembly of this Commonwealth of 55 legislation expressly permitting the conversion of such 56 interstates to toll roads. Such conversions shall take place at 57 a time and manner set forth in the plan for the conversion 58 prepared by the commission with the cooperation of the 59 department. The provisions authorizing the commission to HB1590A02073 - 40 -
1 construct, operate and maintain the turnpike routes in sections 2 8911, 8912 and 8913 shall be subject to: 3 * * * 4 Section 2.7. Title 75 is amended by adding sections to read: 5 § 8915.1. Conversion of Interstate 80. 6 In order to facilitate vehicular traffic across this 7 Commonwealth, the commission is authorized and empowered to do 8 all of the following: 9 (1) Construct, reconstruct, widen, expand, extend, 10 operate, maintain and maintain and operate Interstate 80 from 11 a point at or near the Ohio border to a point at or near the 12 New Jersey border, together with connecting roads, 13 interchanges, slip ramps, tunnels and bridges. 14 (2) Issue turnpike revenue bonds, notes or other 15 obligations, payable solely from revenues of the commission, 16 including tolls, or from funds as may be available to the 17 commission for that purpose, to pay the cost of construction, 18 reconstructing, widening, expanding or extending or any other 19 costs of the Pennsylvania Turnpike. 20 (3) Convert to a toll road Interstate 80 and to operate 21 and maintain the converted interstate as a toll road. 22 § 8915.2. Application to United States Department of 23 Transportation. 24 (a) Application.--The commission, in consultation with the 25 department and at its own expense, is authorized to prepare and 26 submit an application to the United States Department of 27 Transportation in accordance with 23 U.S.C. § 129 (relating to 28 toll roads, bridges, tunnels, and ferries) for the conversion of 29 Interstate 80 to a toll road under the Interstate Reconstruction 30 and Rehabilitation Pilot Program or in accordance with any other 31 applicable Federal program or provision of law. The secretary 32 shall ensure that all information required for the application 33 is made available to the commission as soon as practicable after 34 the effective date of this section. If the application is 35 submitted pursuant to the Interstate Reconstruction and 36 Rehabilitation Pilot Program, it shall contain all of the 37 following: 38 (1) A consulting civil engineer's report assessing the 39 current physical conditions of the roadbed, pavement, bridges 40 and interchanges and projecting the costs to upgrade 41 Interstate 80, the costs for additional improvements and 42 implementation of the tolling facilities and existing funds 43 available for Interstate 80, absent tolling and concluding 44 that the facility would not be maintained or improved to meet 45 current or future needs from the Commonwealth's 46 apportionments and allocations and from revenues for highways 47 from any other source without toll revenues. 48 (2) A traffic and revenue report completed by a third- 49 party consultant forecasting future traffic and revenue over 50 a minimum of 20 years. 51 (3) An environmental scoping analysis assessing the 52 fiscal impact, any air and water quality issues and the 53 involvement of local metropolitan planning organizations. 54 (4) A construction and operational plan for the 55 implementation of the Toll Pilot Program for Interstate 80 56 which: 57 (i) assumes completion no later than five years 58 after financing; 59 (ii) includes a plan for implementing the imposition HB1590A02073 - 41 -
1 of tolls on use of Interstate 80, a schedule and finance 2 plan for the reconstruction and rehabilitation of 3 Interstate 80 using toll revenues and a description of 4 the public transportation agency that will be responsible 5 for implementation and administration of the toll pilot 6 program. 7 (5) A financial analysis demonstrating that tolling 8 Interstate 80 will produce sufficient revenue to pay debt 9 service on any bonds and loans incurred with respect to the 10 Toll Pilot Program. 11 (b) Open system.--A toll system shall consist of what is 12 commonly referred to as an open system. 13 § 8915.3. Lease of Interstate 80. 14 The department and the commission shall enter into a lease 15 agreement relating to Interstate 80. The lease agreement shall 16 include provisions setting forth the terms and conditions of the 17 conversion of Interstate 80 to a toll road. The lease agreement, 18 at a minimum, shall include the following: 19 (1) A provision that the term of the lease agreement 20 shall be 50 years, unless extended upon mutual agreement of 21 the parties to the lease agreement. 22 (2) A provision establishing a conversion period and 23 authorizing extension of the conversion period at the sole 24 option of the commission for three one-year extension periods 25 after consultation with the secretary. The commission shall 26 notify the secretary of its intent to extend the conversion 27 period not less than 90 days before the scheduled expiration 28 of the conversion period. During the conversion period, all 29 legal, financial and operational responsibility for 30 Interstate 80 shall remain with the department. All 31 operations and programmed rehabilitation shall be maintained 32 at levels no less favorable than those set forth in the 33 department's 12-year plan at the time of the execution of the 34 lease, with modifications as are approved in writing by the 35 chairman of the commission. 36 (3) A provision permitting the commission to exercise 37 its option to convert Interstate 80 to a toll road prior to 38 the expiration of the conversion period by providing the 39 conversion notice to the secretary. Beginning on the 40 conversion date, all legal, financial and operational 41 responsibility for Interstate 80, as well as all toll 42 revenues collected with respect to its use, shall be 43 transferred from the department to the commission. The 44 commission shall contract with the department for any portion 45 of the maintenance of Interstate 80 at cost levels no less 46 favorable than those of the department on the conversion 47 date. 48 (4) A provision requiring the commission to pay annual 49 base rent to the department during the term of the lease 50 agreement in the following manner and equal to the following 51 amounts: 52 (i) Annual debt service on outstanding bonds issued 53 under section 9511.2 (relating to special revenue bonds 54 payable solely from pledged revenues of Motor License 55 Fund) payable as required pursuant to bonds. 56 (ii) $200,000,000 payable annually in four equal 57 installments each due the first business day of each 58 July, October, January and April. 59 (5) A provision requiring the commission to pay annual HB1590A02073 - 42 -
1 additional rent to the department as follows: 2 (i) During the conversion period and after the 3 conversion of Interstate 80 to a toll road, the annual 4 additional rent shall be equal to the scheduled annual 5 commission contribution, minus any amounts paid under 6 paragraph (4) less the proceeds of bonds allocable to the 7 fiscal year in question issued under section 9511.2 and 8 any Interstate 80 savings for that fiscal year as set 9 forth in the Auditor General's certificate. 10 (ii) If conversion notice is not received by the 11 secretary prior to the expiration of the conversion 12 period, the annual additional rent shall be equal to 13 $250,000,000. 14 The annual additional rent provided under this paragraph is 15 deemed to be equal to the fair market value of Interstate 80 16 and shall be payable in four equal installments due the first 17 business day of each July, October, January and April of each 18 year during the term of the lease agreement. 19 (6) A provision requiring the commission to pay, 20 commencing on the conversion date, annual surplus rent to the 21 department equal to the general reserve fund surplus payable 22 for each fiscal year from the conversion date until the end 23 of the term of the lease agreement. The surplus rent shall be 24 payable by the commission within 30 days of receipt by the 25 commission of the Auditor General's certificate. If the 26 conversion period expires before the conversion date, no 27 annual surplus rent shall be payable. 28 (7) A provision stating that the obligation of the 29 commission to pay the annual base rent, the annual additional 30 rent and annual surplus rent shall be a subordinate 31 obligation of the commission payable from amounts in the 32 general reserve fund of the commission only as permitted by 33 any financing documents, financial covenants, liquidity 34 policies or agreements, swap agreements or rating agency 35 requirements in effect at the commission. 36 (8) A provision authorizing the department to receive 37 the annual base rent, annual additional rent and annual 38 surplus rent, and to deposit amounts so received as follows, 39 to the degree permitted by applicable Federal laws and 40 regulations: 41 (i) proceeds of bonds issued under section 9511.2 42 shall be spent consistent with sections 9511.4(h) 43 (relating to special revenue bonds and preliminary or 44 interim financing) and 9511.5 (relating to application of 45 proceeds of obligations, lien of holders of obligations, 46 design-build requirement and projects approved by the 47 General Assembly); 48 (ii) be deposited in the Public Transportation Trust 49 Fund as follows: 50 (A) $250,000,000 for fiscal year 2007-2008; 51 (B) $300,000,000 for fiscal year 2008-2009; 52 (C) $350,000,000 for fiscal year 2009-2010; and 53 (D) $400,000,000 for fiscal year 2010-2011 and 54 increased by 2.5% for each fiscal year thereafter; 55 and 56 (iii) any balance received from the department shall 57 be deposited in the Motor License Fund. For any year in 58 which there are no bond proceeds under this paragraph, 59 $5,000,000 of the money deposited shall be for county HB1590A02073 - 43 -
1 roads and bridges and $30,000,000 of the money deposited 2 shall be for municipal roads and bridges to be allocated 3 under the act of June 1, 1956 (1955 P.L.1944, No.655), 4 referred to the Liquid Fuels Tax Municipal Allocation 5 Law. 6 § 8916. Other interstate highways. 7 In order to facilitate vehicular traffic across this 8 Commonwealth and pursuant to the authority granted under this 9 chapter, the commission is hereby authorized and empowered to: 10 (1) at its own expense and in consultation with the 11 department, prepare a consulting civil engineer report and 12 financial analysis with respect to the feasibility of 13 converting Interstate 95 to a toll road and operating and 14 maintaining the converted interstate as a toll road, upon 15 approval of the General Assembly and the United States 16 Department of Transportation; and 17 (2) at its own expense, and in consultation with the 18 department, prepare and submit an application to the United 19 States Department of Transportation for the conversion of 20 Interstate 95 to a toll road pursuant to any Federal program 21 for which it may be eligible. 22 Amend Bill, page 69, line 20, by striking out all of said 23 line and inserting 24 Section 4. Title 75 is amended by adding a section to read: 25 § 9501. Definitions. 26 The following words and terms when used in this chapter shall 27 have the meanings given to them in this section, unless the 28 context clearly indicates otherwise: 29 "Bond related expenses." The term shall include all of the 30 following: 31 (1) Printing, publication or advertising expenses with 32 respect to the sale and issuance of bonds. 33 (2) Fees, expenses and costs of registrars. 34 (3) Fees, expenses and costs of attorneys, accountants, 35 feasibility consultants, computer programmers or other 36 experts employed to aid in the sale and issuance of the 37 bonds. 38 (4) Other costs, fees and expenses incurred or 39 reasonably related to the issuance and sale of the bonds. 40 "Bond-related obligation." An agreement or contractual 41 relationship between the Pennsylvania Turnpike Commission and a 42 bank, trust company, insurance company, swap counterparty, 43 surety bonding company, pension fund or other financial 44 institution providing increased credit on or security for the 45 bonds or liquidity for secondary market transactions. 46 "Commission." The Pennsylvania Turnpike Commission or any 47 successor organization. 48 "Cost of the department." 49 (1) Any of the following, which shall be reimbursed or 50 paid out of the proceeds of the special revenue bonds, notes 51 or other obligations authorized under this chapter: 52 (i) The cost of constructing, reconstructing, 53 widening, expanding or extending the State highway and 54 rural State highway system and all connecting roads, 55 tunnels and bridges. 56 (ii) The cost of all lands, property rights, rights- HB1590A02073 - 44 -
1 of-way, easements and franchises acquired, which are 2 deemed necessary or convenient for the construction, 3 reconstruction, widening, expanding or extending under 4 subparagraph (i). 5 (iii) The cost of all machinery and equipment, 6 financing charges, interest prior to and during 7 construction and for one year after completion of 8 construction. 9 (iv) The cost of traffic estimates and of 10 engineering and legal expenses, plans, specifications, 11 surveys, estimates of cost and of revenues, other 12 expenses necessary or incident to determining the 13 feasibility or practicability of the enterprise, 14 administrative and legal expenses and other expenses as 15 may be necessary or incident to the financing authorized 16 under this chapter, the construction, reconstruction, 17 widening, expanding or extending of the State highway and 18 the rural State highway system and connecting roads, 19 tunnels and bridges, the placing of the same in operation 20 and the condemnation of property necessary for 21 construction and operation. 22 (v) Any obligation or expense contracted for by the 23 Department of Transportation or with the United States or 24 any agency of the United States, for traffic surveys, 25 preparation of plans and specifications, supervision of 26 construction, and other engineering, administrative and 27 legal services and expenses in connection with the 28 construction, reconstruction, widening, expanding or 29 extending of the State highway and the rural State 30 highway system or any of the connecting roads, tunnels 31 and bridges. 32 (2) Payment of any notes or other obligations if the 33 notes or other obligations were issued for the payment of a 34 cost. 35 "Design build arrangement." A procurement or project 36 delivery arrangement whereby a single entity, which may be a 37 single contractor or a consortium comprised of multiple 38 contractors, engineers and other subconsultants, is responsible 39 for both the design and construction of a transportation project 40 with a guaranteed completion date and guaranteed maximum price. 41 "Owner." The term shall include all individuals, 42 copartnerships, associations or corporations having any title or 43 interest in any property rights, easements or franchises 44 authorized to be acquired by this chapter. 45 "Pledged revenues." Revenues of the Motor License Fund 46 pledged to the Pennsylvania Turnpike Commission under sections 47 9010 (relating to disposition and use of tax), 9511(i) (relating 48 to allocation of proceeds) and 9511.11 (relating to Motor 49 License Fund proceeds) and amounts payable by the commission 50 under section 8915.3(4)(i) (relating to lease of Interstate 80). 51 "Rural State Highway System." All roads and highways taken 52 over by the Commonwealth as State highways under the provisions 53 of the act of June 22, 1931 (P.L.594, No.203), referred to as 54 the Township State Highway Law and all other roads and highways 55 specifically designated by the Secretary of Transportation as 56 Rural State Highways. 57 "State highway." All roads and highways taken over by the 58 Commonwealth as State highways under the provisions of any 59 statute. Unless clearly intended, the term shall not include any HB1590A02073 - 45 -
1 street in any city, borough or incorporated town, even though 2 the same may have been taken over as a State highway. 3 Section 5. Title 75 is amended by adding sections to read: 4 § 9511.2. Special revenue bonds payable solely from pledged 5 revenues of Motor License Fund. 6 (a) Payment source.--A special revenue bond, note or other 7 obligation issued under this chapter: 8 (1) shall not be deemed to be a debt or liability of the 9 Commonwealth; 10 (2) shall not create or constitute any indebtedness, 11 liability or obligation of the Commonwealth; and 12 (3) shall be payable solely from revenues of the Motor 13 License Fund pledged to the commission for that purpose in 14 combination with amounts transferred under section 15 8915.3(4)(i) (relating to lease of Interstate 80). 16 (b) Statement.--A special revenue bond, note or other 17 obligation issued under this chapter must contain a statement on 18 its face that: 19 (1) the Commonwealth is not obligated to pay the bond, 20 note or obligation or the interest on it except from revenues 21 of the Motor License Fund pledged for that purpose in 22 combination with amounts transferred under section 23 8915.3(4)(i); and 24 (2) neither the faith and credit nor the taxing power of 25 the Commonwealth is pledged to the payment of the principal 26 or interest of the bond, note or obligation. 27 (c) Taxation.--The issuance of a special revenue bond, note 28 or other obligation under this chapter shall not directly, 29 indirectly or contingently obligate the Commonwealth to levy a 30 tax or to make an appropriation for payment. 31 § 9511.3. Expenses. 32 (a) Reimbursement.--The commission shall be reimbursed for 33 the necessary expenses incurred in the performance of the duties 34 performed under the provisions of this chapter. 35 (b) Source.--All expenses incurred in carrying out the 36 provisions of this chapter shall be paid solely from funds 37 provided under the authority of this chapter, and sufficient 38 funds shall be provided under the authority of this chapter to 39 meet any liability or obligation incurred in carrying out the 40 provisions of this chapter. 41 § 9511.4. Special revenue bonds and preliminary or interim 42 financing. 43 (a) Authorization.--The commission is authorized to provide, 44 by resolution, for the issuance of special revenue bonds of the 45 commission up to an amount not exceeding $4,000,000,000 for the 46 purpose of paying the cost of the department and bond-related 47 expenses. The resolution must recite an estimate of the cost of 48 the department. No more than $600,000,000 of special revenue 49 bonds may be issued in any calendar year. No bond may be issued 50 under this section unless the lease agreement authorized under 51 section 8915.3 (relating to lease of Interstate 80) is in effect 52 as of the date of issuance. Special revenue refunding bonds as 53 set forth in section 9511.9 (relating to special revenue 54 refunding bonds) shall not be deemed to count against the total 55 or annual maximum issuance volume. The principal and interest of 56 the bond shall be payable solely from revenues of the Motor 57 License Fund pledged for that purpose to the commission in 58 combination with the amounts transferred under section 59 8915.3(4)(i). HB1590A02073 - 46 -
1 (b) Form.-- 2 (1) A bond may be issued in registered form. 3 (2) A bond: 4 (i) must be dated; 5 (ii) must bear interest at a rate not exceeding the 6 rate permitted under applicable law; 7 (iii) must be payable semiannually; 8 (iv) must mature, as determined by the commission, 9 not exceeding 40 years from the date of the bond; and 10 (v) may be made redeemable before maturity, at the 11 option of the commission, at a price and under terms and 12 conditions fixed by the commission prior to the issuance 13 of the bonds. 14 (3) The amount of premium on a bond shall not cause the 15 yield to be more than permitted by applicable law from the 16 date of the bond to the date of redemption. 17 (c) Issuance.-- 18 (1) The bond may be issued in registered form. The 19 commission may sell a bond in registered form at public or 20 private sale and for a price it determines to be in the best 21 interest of the Commonwealth, but no sale shall be made at a 22 price so low as to require the payment of interest on the 23 money received for the bond at more than the rate permitted 24 by applicable law, computed with relation to the absolute 25 maturity of the bond in accordance with standard tables of 26 bond values. 27 (2) A bond may be issued at public or private sale in 28 series with varying provisions as to all of the following: 29 (i) Rates of interest, which may be fixed or 30 variable. 31 (ii) Maturity. 32 (iii) Other provisions not inconsistent with this 33 chapter. 34 (d) Revenue share.--All bonds, of whatever series, shall 35 share ratably in the revenues pledged under this chapter as 36 security for the bonds, although one series of bonds may have a 37 lien on pledged revenues senior to the lien of another series of 38 bonds. 39 (e) Payment.-- 40 (1) The principal and interest of the bonds may be made 41 payable in any lawful medium. 42 (2) The commission shall: 43 (i) determine the form of bonds; and 44 (ii) fix: 45 (A) the denomination of the bond; and 46 (B) the place of payment of principal and 47 interest of the bond, which may be at any bank or 48 trust company within or without this Commonwealth. 49 (f) Signature.--The bond must bear the facsimile signature 50 of the Governor and of the chairman of the commission. The 51 facsimile of the official seal of the commission shall be 52 affixed to the bond and attested by the secretary and treasurer 53 of the commission. If an officer whose signature or facsimile of 54 a signature appears on a bond ceases to be an officer before the 55 delivery of the bond, the signature or facsimile shall 56 nevertheless be valid and sufficient for all purposes, as if the 57 officer remained in office until delivery. 58 (g) Negotiability.--A special revenue bond issued under this 59 chapter shall have all the qualities and incidents of a HB1590A02073 - 47 -
1 negotiable instrument under 13 Pa.C.S. Div. 3 (relating to 2 negotiable instruments). 3 (h) Proceeds.-- 4 (1) The proceeds of a bond shall be used solely for the 5 following: 6 (i) Payment of the cost of the department. 7 (ii) Bond-related expenses. 8 (iii) $5,000,000 in the aggregate of the proceeds of 9 bonds issued in any fiscal year, other than a refunding 10 issue, shall be used for county roads and bridges and 11 $30,000,000 of the proceeds in the aggregate of the bonds 12 issued in any fiscal year, other than a refunding issue, 13 shall be used for local roads and bridges to be allocated 14 under the act of June 1, 1956 (1955 P.L.1944, No.655), 15 referred to as the Liquid Fuels Tax Municipal Allocation 16 Law. 17 (2) The proceeds of a bond shall be disbursed upon 18 requisition of the secretary under restrictions set forth in 19 the resolution authorizing the issuance of the bond or the 20 trust indenture under section 9511.6 (relating to trust 21 indenture, protection of holders of obligations and 22 depositories). 23 (3) If the proceeds of a bond, by error of calculation 24 or otherwise, shall be less than the cost of the department, 25 additional bonds may be issued to provide the amount of the 26 deficit and, unless otherwise provided in the resolution 27 authorizing the issuance of the bonds or in the trust 28 indenture, shall be deemed to be of the same issue and shall 29 be entitled to payment from the same fund, without preference 30 or priority of the bonds first issued. 31 (i) Temporary bonds.--Prior to the preparation of definitive 32 bonds, the commission may, under similar restrictions as those 33 applicable to the definitive bonds, issue temporary bonds, 34 exchangeable for definitive bonds upon the issuance of 35 definitive bonds. 36 (j) Replacement bonds.--The commission may provide for the 37 replacement of a bond which becomes mutilated or is destroyed or 38 lost. A replacement revenue bond may be issued without any other 39 proceedings or the happening of any other condition than those 40 proceedings and conditions required by this chapter. 41 (k) Status as securities.-- 42 (1) A bond is made a security in which any of the 43 following may properly and legally invest funds, including 44 capital, belonging to them or within their control: 45 (i) Commonwealth and municipal officers. 46 (ii) Commonwealth agencies. 47 (iii) Banks, bankers, savings banks, trust 48 companies, saving and loan associations, investment 49 companies and other persons carrying on a banking 50 business. 51 (iv) Insurance companies, insurance associations and 52 other persons carrying on an insurance business. 53 (v) Fiduciaries. 54 (vi) Other persons that are authorized to invest in 55 bonds or other obligations of the Commonwealth. 56 (2) A bond is made a security which may properly and 57 legally be deposited with and received by a Commonwealth or 58 municipal officer or a Commonwealth agency for any purpose 59 for which the deposit of bonds or other obligations of the HB1590A02073 - 48 -
1 Commonwealth is authorized by law. 2 (l) Borrowing.--The following shall apply: 3 (1) The commission is authorized to do all of the 4 following: 5 (i) Borrow money at an interest rate not exceeding 6 the rate permitted by law. 7 (ii) Provide for preliminary or interim financing, 8 up to but not exceeding the estimated total cost of the 9 department and bond-related expenses and to evidence the 10 borrowing by the issuance of special revenue notes and, 11 in its discretion, to pledge as collateral for the note 12 or other obligation, a special revenue bond issued under 13 the provisions of this chapter. The commission may renew 14 the note or obligation and the payment or retirement of 15 the note or obligation shall be considered to be payment 16 of the cost of the project. 17 (2) A note or obligation issued under this subsection 18 must comply with the following: 19 (i) Be executed by the same persons in the same 20 manner and with the same effect as provided in this 21 section for the execution of a special revenue bond. 22 (ii) Contain a statement on its face that: 23 (A) the Commonwealth is not obligated to pay the 24 note or obligation or interest on it, except from 25 pledged revenues of the Motor License Fund; and 26 (B) neither the faith and credit nor the taxing 27 power of the Commonwealth is pledged to the payment 28 of its principal or interest. 29 (3) The issuance of a special revenue note or other 30 obligation under this chapter shall not directly or 31 indirectly or contingently obligate the Commonwealth to levy 32 a tax or make an appropriation for payment. 33 (4) A note or other obligation issued under this 34 subsection shall have all the qualities and incidents of a 35 negotiable instrument under 13 Pa.C.S. (relating to 36 commercial code). 37 § 9511.5. Application of proceeds of obligations, lien of 38 holders of obligations, design-build requirement and 39 projects approved by General Assembly. 40 (a) Application.--The following shall apply: 41 (1) All money received from any bonds, notes or other 42 obligations issued under this chapter shall be applied solely 43 to the payment of the cost of the department or to the 44 appurtenant fund. 45 (2) Until money received from any bonds, notes or other 46 obligations issued under this chapter is applied under 47 paragraph (1), a lien shall exist upon the money in favor of 48 holders of the bonds, notes or other obligations or a trustee 49 provided for in respect to the bonds, notes or other 50 obligations. 51 (b) Design-build arrangements.--To facilitate the timely 52 completion of projects to be financed by the department with 53 bond proceeds, the department shall be required to utilize 54 design-build arrangements for each project estimated by the 55 department to have a value in excess of $100,000,000. The 56 selection of the party for the design-build arrangement must be 57 conducted in a manner consistent with the procurement and public 58 bidding laws applicable to the department. 59 (c) Capital plan.--All projects financed by the department HB1590A02073 - 49 -
1 with bond proceeds must be set forth in the department's capital 2 plan current at the time of the financing and budget which 3 capital plan and budget shall be submitted to the General 4 Assembly on or before March 31 of each year commencing March 31, 5 2008. 6 (d) Investment.--Pending the application of proceeds to 7 costs of the department and bond-related expenses, the 8 commission may invest the funds in permitted investments as 9 defined under any trust indenture if the investment is not 10 inconsistent with existing fiduciary obligations of the 11 commission. 12 § 9511.6. Trust indenture, protection of holders of obligations 13 and depositories. 14 (a) Indenture.--In the discretion of the commission, a bond, 15 note or other obligation may be secured by a trust indenture by 16 and between the commission and a corporate trustee, which may be 17 any trust company or bank having the powers of a trust company, 18 within or without this Commonwealth. 19 (b) Pledge or assignment.--A trust indenture under 20 subsection (a) may pledge or assign revenue to be received, but 21 shall not convey or mortgage the turnpike or any part of the 22 turnpike. 23 (c) Rights and remedies.--The resolution providing for the 24 issuance of the bond, note or other obligation of the trust 25 indenture may contain provisions for protecting and enforcing 26 the rights and remedies of the bondholders or holders of notes 27 or other obligations as may be reasonable and proper and not in 28 violation of law, including covenants setting forth the duties 29 of the department in relation to the acquisition of properties, 30 the construction, maintenance, operation, repair and insurance 31 of the State highway and rural State highway system and the 32 custody, safeguarding and application of all money. 33 (d) Depository.--It shall be lawful for any bank or trust 34 company incorporated under the laws of this Commonwealth to act 35 as depository of the proceeds of the bond, note or other 36 obligation or revenue, to furnish indemnity bonds or to pledge 37 securities as may be required by the commission. 38 (e) Indenture.--The trust indenture may set forth the rights 39 and remedies of the bondholders or holders of notes or other 40 obligations and of the trustee and may restrict the individual 41 right of action of bondholders or holders of notes or other 42 obligations as is customary in trust indentures securing bonds, 43 debentures of corporations, notes or other obligations. The 44 trust indenture may contain other provisions as the commission 45 may deem reasonable and proper for the security of bondholders 46 or holders of notes or other obligations. 47 § 9511.7. Exemption from Commonwealth taxation. 48 The effectuation of the purposes of this chapter is for the 49 benefit of the citizens of the Commonwealth and for the 50 improvement of their commerce and prosperity. Since the 51 commission will be performing essential government functions in 52 effectuating these purposes, the commission shall not be 53 required to pay any tax or assessment on any property acquired 54 or used by it for the purposes provided under this chapter. A 55 bond, note or other obligation issued by the commission, its 56 transfer and the income from its issuance and transfer, 57 including any profits made on the sale of the bond, note or 58 other obligation, shall be free from taxation within the 59 Commonwealth. HB1590A02073 - 50 -
1 § 9511.8. Pledged revenues, contracts for use of turnpike, 2 sinking fund and purchase or redemption of 3 obligations. 4 (a) Authorization.--The commission is authorized to collect 5 the pledged revenues. The pledged revenues shall be fixed and 6 adjusted as to provide funds at least sufficient to pay the 7 bonds, notes or other obligations and the interest on the bonds, 8 notes or other obligations. All sinking fund requirements and 9 other requirements provided by the resolution authorizing the 10 issuance of the bonds, notes or other obligations, or by the 11 trust indenture, shall be fixed and adjusted as the bonds, notes 12 or other obligations become due. 13 (b) Supervision.--The pledged revenues shall not be subject 14 to supervision or regulation by any Commonwealth agency other 15 than the commission. 16 (c) Set aside.--Except for the portion of the pledged 17 revenues required to provide reserves as set forth in the 18 resolution authorizing the issuance of the bonds, notes or other 19 obligations or in the trust indenture, pledged revenues, to the 20 degree amounts transferred under section 8915.3(4)(i)(relating 21 to lease of Interstate 80) are not sufficient, shall be set 22 aside at regular intervals as may be provided in the resolution 23 or trust indenture, in one or more accounts, which are pledged 24 to and charged with the payment of all of the following: 25 (1) The interest upon a bond, note or other obligation, 26 as it shall become due and payable. 27 (2) The principal of a bond, note or other obligation, 28 as it shall become due and payable. 29 (3) The necessary fiscal agency charges for paying 30 principal and interest. 31 (4) A premium upon a bond retired by call or purchase. 32 (d) Sinking fund.--The use and disposition of the sinking 33 fund shall be subject to regulations as may be provided in the 34 resolution authorizing the issuance of bonds, notes or other 35 obligations or in the trust indenture, but, except as may 36 otherwise be provided in the resolution or trust indenture, the 37 sinking fund shall be a fund for the benefit of all bonds, notes 38 or other obligations issued under this chapter, without 39 distinction or priority of one over another. 40 (e) Application of money.--Subject to the provisions of the 41 resolutions authorizing the issuance of bonds, notes or other 42 obligations or of the trust indenture, any money in the sinking 43 fund in excess of an amount equal to one year's interest on all 44 bonds, notes or other obligations then outstanding may be 45 applied to the purchase or redemption of bonds, notes or other 46 obligations. All bonds, notes or other obligations purchased or 47 redeemed under this subsection shall be canceled and shall not 48 again be issued. 49 § 9511.9. Special revenue refunding bonds. 50 The commission is authorized to provide, by resolution, for 51 the issuance of special revenue refunding bonds of the 52 commission for the purpose of refunding any special revenue 53 bonds, notes or other obligations issued under the provisions of 54 this chapter and then outstanding. The issuance of the special 55 revenue refunding bonds, the maturities and other details of the 56 bonds, the rights of the holders of the bonds and the duties of 57 the department and of the commission with respect to the bonds 58 shall be governed by the provisions of this chapter. 59 § 9511.10. Remedies of trustees and of holders of obligations. HB1590A02073 - 51 -
1 (a) Grant of rights.--A holder of a bond, note or other 2 obligation issued under this chapter and the trustee under the 3 trust indenture may, either at law or in equity, by suit, 4 action, mandamus or other proceeding, do all of the following: 5 (1) Protect and enforce any right granted under this 6 chapter or under the resolution or trust indenture. 7 (2) Enforce and compel performance of all duties 8 required under this chapter or by resolution or trust 9 indenture to be performed by the commission or any officer of 10 its officers, including the collection of the pledged 11 reserves or amounts transferred under section 8915.3(4)(i) 12 (relating to lease of Interstate 80). 13 (b) Exception.--Rights given under this chapter may be 14 restricted by resolution passed before the issuance of the 15 bonds, notes or other obligations, or by the trust indenture. 16 § 9511.11. Motor License Fund proceeds. 17 The balance of the proceeds deposited in the Motor License 18 Fund under section 20 of the act of April 17, 1997 (P.L.6, 19 No.3), entitled, "An act amending Titles 74 (Transportation) and 20 75 (Vehicles) of the Pennsylvania Consolidated Statutes, further 21 providing for annual appropriation and computation of subsidy 22 and for distribution of funding; providing for distribution of 23 supplemental funding; further providing for use of funds 24 distributed; providing for public transportation grants 25 management accountability, for competitive procurement and for 26 the Public Transportation Assistance Fund; further providing for 27 period of registration, for duties of agents, for registration 28 and other fees, for requirements for periodic inspection of 29 vehicles, for limits on number of towed vehicles, for operation 30 of certain combinations on interstate and other highways and for 31 width and length of vehicles; providing for liquid fuels and 32 fuels permits and bond or deposit of securities, for imposition 33 of liquid fuels and fuels tax, for taxpayer, for distributor's 34 report and payment of tax, for determination of tax, penalties 35 and interest, for examination of records and equipment, for 36 retention of records by distributors and dealers, for 37 disposition and use of tax, for discontinuance or transfer of 38 business, for suspension or revocation of permits, for lien of 39 taxes, penalties and interest, for collection of unpaid taxes, 40 for reports from common carriers, for violations and reward for 41 detection of violations, for refunds, for diesel fuel importers 42 and transporters, for prohibiting use of dyed diesel fuel, for 43 disposition of fees, fines and forfeitures, for certified copies 44 of records and for uncollectible checks; further providing for 45 distribution of State highway maintenance funds and for 46 standards and methodology for data collection; providing for 47 dirt and gravel road maintenance; further providing for 48 imposition of tax and additional tax; providing for tax on 49 alternative fuels; further providing for disposition of tax 50 revenue; making an appropriation; and making repeals," is 51 pledged to secure bonds issued by the commission. The proceeds 52 may be pledged to secure bonds to be issued by the commission on 53 behalf of the department for the construction, reconstruction, 54 widening, expansion, extension, maintenance and repair of and 55 safety on bridges and costs and expenses incident to those tasks 56 and fees and expenses of the commission related to the issuance 57 of the bonds, including bond-related expenses. Each month, the 58 State Treasurer shall transfer amounts as are necessary, in 59 combination with amounts transferred under sections HB1590A02073 - 52 -
1 8915.3(4)(i)(relating to lease of Interstate 80) and 9511 2 (relating to allocation of proceeds) to satisfy the provisions 3 of the bond indenture relating to bonds issued under this 4 section and those amounts are authorized to be appropriated. 5 § 9511.12. Supplement to other laws and liberal construction. 6 This chapter shall be regarded as supplemental and additional 7 to powers conferred by other statutes and shall not be regarded 8 as in derogation of any powers existing on the effective date of 9 this section. The provisions of this chapter, being necessary 10 for the welfare of the Commonwealth and its citizens shall be 11 liberally construed to effect the purposes of this chapter. 12 Section 6. (a) Financial assistance made by the Department 13 of Transportation to an award recipient under 74 Pa.C.S. Ch. 13 14 prior to the effective date of this section may continue to be 15 used by award recipients for operating or capital expenses upon 16 the same terms and conditions as are contained in the notice of 17 grant award or grant agreement executed in connection with the 18 award, if the funds are expended within five years following the 19 effective date of this section. 20 (b) The Department of Transportation may continue to use all 21 funds appropriated or otherwise made available to it for public 22 transportation purposes prior to the effective date of this 23 section in accordance with the laws under which the funds were 24 made available. 25 Section 7. The following shall apply: 26 (1) The General Assembly declares that the repeal under 27 paragraph (2) is necessary to effectuate the addition of 74 28 Pa.C.S. Ch. 81. 29 (2) The act of September 30, 1985 (P.L.240, No.61), 30 known as the Turnpike Organization, Extension and Toll Road 31 Conversion Act is repealed. 32 (3) Section 207.1(c)(2) of the act of April 9, 1929 33 (P.L.177, No.175), known as The Administrative Code of 1929, 34 is repealed insofar as it is inconsistent with the addition 35 of 74 Pa.C.S. § 8105. 36 (4) Sections 2301(a) and (b) of the act of March 4, 1971 37 (P.L.6, No.2), known as the Tax Reform Code of 1971, insofar 38 as they relate to the establishment and existence of the 39 Public Transportation Assistance Fund are repealed. 40 (5) All other acts and parts of acts are repealed 41 insofar as they are inconsistent with this act. 42 Section 8. The addition of 74 Pa.C.S. Ch. 81 is a 43 continuation of the act of September 30, 1985 (P.L.240, No.61), 44 known as the Turnpike Organization, Extension and Toll Road 45 Conversion Act. The following shall apply: 46 (1) Except as otherwise provided under 74 Pa.C.S. Ch. 47 81, all activities initiated under the Turnpike Organization, 48 Extension and Toll Road Conversion Act shall continue and 49 remain in full force and effect and may be completed under 74 50 Pa.C.S. Ch. 81. Orders, regulations, rules and decisions 51 which were made under the Turnpike Organization, Extension 52 and Toll Road Conversion Act and which are in effect on the 53 effective date of section 7(2) of this act shall remain in 54 full force and effect until revoked, vacated or modified 55 under 74 Pa.C.S. Ch. 81. Contracts, obligations and 56 collective bargaining agreements entered into under the 57 Turnpike Organization, Extension and Toll Road Conversion Act 58 are not affected nor impaired by the repeal of the Turnpike 59 Organization, Extension and Toll Road Conversion Act. HB1590A02073 - 53 -
1 (2) Except as set forth in paragraph (3), any difference 2 in language between 74 Pa.C.S. Ch. 81 and the Turnpike 3 Organization, Extension and Toll Road Conversion Act is 4 intended only to conform to the style of the Pennsylvania 5 Consolidated Statutes and is not intended to change or affect 6 the legislative intent, judicial construction or 7 administration and implementation of the Turnpike 8 Organization, Extension and Toll Road Conversion Act. 9 (3) Paragraph (2) does not apply to the addition of 74 10 Pa.C.S. § 8105. 11 Section 9. This act shall take effect as follows: 12 (1) The following provisions shall take effect 13 immediately: 14 (i) The addition of 74 Pa.C.S. § 8105. 15 (ii) Section 7(3) of this act. 16 (iii) This section. 17 (2) The remainder of this act shall take effect in 60 18 days. F23L90VDL/HB1590A02073 - 54 -