PRINTER'S NO. 645
No. 577 Session of 1983
INTRODUCED BY PRATT, HUTCHINSON, BELFANTI, KASUNIC, LAUGHLIN,
COLAFELLA, WACHOB, KUKOVICH, GRUITZA, LLOYD, OLASZ, FARGO,
RAPPAPORT, RYBAK, AFFLERBACH, GANNON, RICHARDSON, HALUSKA,
SWEET, MAIALE, F. E. TAYLOR, D. R. WRIGHT, CALTAGIRONE,
DeLUCA, RUDY, CLARK, FISCHER, PERZEL, VAN HORNE, McINTYRE,
ALDERETTE, PETRARCA, DALEY, WOZNIAK, McVERRY, FEE AND
LIVENGOOD, MARCH 23, 1983
REFERRED TO COMMITTEE ON TRANSPORTATION, MARCH 23, 1983
AN ACT
1 To facilitate vehicular traffic across the Commonwealth by
2 providing for the construction, operation and maintenance of
3 turnpike extensions to be primarily located in southwestern
4 Pennsylvania, and conferring powers and imposing duties on
5 the Pennsylvania Turnpike Commission; authorizing the
6 issuance of turnpike revenue bonds, notes or other
7 obligations of the Commonwealth, payable solely from revenues
8 of the commission, including tolls, or from such funds as may
9 be available to the commission for that purpose, to pay the
10 cost of such turnpikes; providing that no debt of the
11 Commonwealth shall be incurred in the exercise of any of the
12 powers granted by this act; providing for the collection of
13 tolls for the payment of such bonds, notes or other
14 obligations, and for the cost of maintenance, operation and
15 repair of the turnpikes; making such turnpike bonds, notes or
16 other obligations exempt from taxation; constituting the same
17 legal investments in certain instances; requiring suits
18 against the commission to be brought in Dauphin County;
19 prescribing conditions on which such turnpikes shall become
20 free; providing for grade separations, grade changes,
21 relocations, restorations and vacation of public roads and
22 State highways affected by the turnpike; providing for the
23 purchasing or condemnation of land and procedure for
24 determining damages in condemnation; granting certain powers
25 and authority to municipalities and agencies of the
26 Commonwealth to cooperate with the commission; and
27 authorizing the issuance of turnpike revenue refunding bonds.
28 TABLE OF CONTENTS
1 Section 1. Short title.
2 Section 2. Definitions.
3 Section 3. Southwestern extensions authorization.
4 Section 4. Status of turnpike revenue bonds.
5 Section 5. Exercise of commission powers deemed essential
6 government function.
7 Section 6. Commission powers and duties enumerated.
8 Section 7. Expenses and bonding of commission members.
9 Section 8. Acquisition of property rights by commission.
10 Section 9. Procedural requirements of acquisition.
11 Section 10. Entry and possession of property condemned.
12 Section 11. Issuance of turnpike revenue bonds.
13 Section 12. Obligation proceeds restricted and lien created.
14 Section 13. Trust indenture authorized.
15 Section 14. Commission and obligations tax exempt.
16 Section 15. Collection and disposition of tolls and other
17 revenue.
18 Section 16. Revenue refunding bonds.
19 Section 17. Rights of obligation holders and trustees.
20 Section 18. Termination of commission.
21 Section 19. Construction of act.
22 Section 20. Repeals.
23 Section 21. Effective date.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Short title.
27 This act shall be known and may be cited as the Pennsylvania
28 Turnpike System Southwestern Extensions Act.
29 Section 2. Definitions.
30 The following words and phrases when used in this act shall
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1 have the meanings given to them in this section unless the
2 context clearly indicates otherwise:
3 "Commission." The Pennsylvania Turnpike Commission created
4 by the act of May 21, 1937 (P.L.774, No.211), referred to as the
5 Pennsylvania Turnpike Commission Act, or if the commission shall
6 be abolished, any board, commission or officer succeeding to the
7 principal functions thereof or upon whom the power and functions
8 given by this act to the commission shall be given by law.
9 "Cost of the turnpikes." Includes the cost of constructing
10 the turnpikes and all connecting roads, storm water management
11 systems, tunnels and bridges, the cost of all lands, property
12 rights, rights-of-way, easements and franchises acquired by
13 purchase or other means, which are deemed necessary or
14 convenient for such construction, the cost of all machinery and
15 equipment, financing charges, interest prior to and during
16 construction and for one year after completion of construction,
17 cost of traffic estimates and of engineering and legal expenses,
18 plans, specifications, surveys, estimates of cost and of
19 revenues, other expenses necessary or incident to determining
20 the feasibility or practicability of the enterprise,
21 administrative and legal expense, and such other expenses as may
22 be necessary or incident to the financing herein authorized, the
23 construction of the turnpikes and connecting roads, storm water
24 management systems, tunnels and bridges, the placing of the same
25 in operation and the condemnation or other means of acquisition
26 of property necessary for such construction and operation. Any
27 obligation or expense contracted for by the commission with the
28 Department of Transportation of the Commonwealth of
29 Pennsylvania, or with the United States or any agency thereof,
30 for traffic surveys, preparation of plans and specifications
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1 supervision of construction, and other engineering,
2 administrative and legal services and expenses in connection
3 with the construction of the turnpike or any of the connecting
4 roads, storm water management systems, tunnels and bridges, and
5 any costs of reimbursing the Federal Government pursuant to the
6 mandates of Federal law for funds expended for interstate
7 highways which are to be made part of the turnpike pursuant to
8 this act, shall be regarded as a part of the cost of the
9 turnpikes, and shall be reimbursed or paid out of the proceeds
10 of the turnpike revenue bonds, notes or other obligations
11 hereinafter authorized. Payment of any bonds, notes or other
12 obligations shall be considered payment of the cost of the
13 turnpikes, provided such bonds, notes or other obligations were
14 issued for such purpose.
15 "Owner." Includes all individuals, copartnerships,
16 associations or corporations having any title or interest in any
17 property rights, easements or franchises authorized to be
18 acquired by this act.
19 "The turnpikes." The turnpikes to be constructed, as more
20 particularly described in section 3 and as otherwise provided
21 for in this act, shall be deemed to include not only the
22 turnpikes and all connecting roads, storm water management
23 systems, tunnels and bridges connected therewith, but also all
24 property rights, easements and franchises relating thereto and
25 deemed necessary or convenient for the construction or the
26 operation thereof.
27 Section 3. Southwestern extensions authorization.
28 (a) Locations.--In order to facilitate vehicular traffic in
29 various sections of the Commonwealth, the Pennsylvania Turnpike
30 Commission heretofore created by virtue of the provisions of the
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1 act of May 21, 1937 (P.L.774, No.211), referred to as the
2 Pennsylvania Turnpike Commission Act, and the supplements and
3 amendments thereto, is hereby authorized, empowered and directed
4 to construct, operate and maintain turnpikes, at such specific
5 locations and according to such schedule as shall be deemed
6 feasible and approved by the commission, subject to the waiver
7 of the Federal toll prohibition provisions where applicable, as
8 follows:
9 (1) From a point at the intersection of the western
10 extension of the turnpike and Interstate 79 in northern
11 Allegheny County in the vicinity of Warrendale; thence in a
12 general southerly direction following and coincident with
13 existing Interstate 79 to the vicinity of Franklin Park;
14 thence in a general south southeasterly direction generally
15 along the line of the proposed North Hills and East Street
16 Valley Expressways to connect with existing Interstate 579
17 (Crosstown Expressway) in the City of Pittsburgh so as to
18 include such ramps, pylons, road surface and base and other
19 structures added to the southern terminus of said existing
20 Crosstown Expressway providing complete interchanges of said
21 Crosstown Expressway (I-579) portion of the turnpike
22 extension with the Boulevard of the Allies, the Penn-Lincoln
23 Parkway (I-376), the Liberty Bridge thereby providing ingress
24 and egress to the City of Pittsburgh from the areas south of
25 the City of Pittsburgh; thence along the Monongahela River to
26 the Glennwood Bridge; thence in a general southerly direction
27 generally along the line of the proposed Mon Valley
28 Expressway to a point intersecting existing Interstate 70
29 west of the Monongahela River, including the unfinished
30 portions of the Mon Valley Expressway south of Interstate 70
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1 to U.S. Route 40, plus entrances and exits and any spurs
2 called for in the original plan, and including a spur from
3 just south of the Glennwood Bridge in a general southwesterly
4 direction along the path of the proposed Streets Run
5 Expressway to a point at its intersection with State Route 51
6 in the vicinity of Pleasant Hills, together with connecting
7 roads, storm water management systems, tunnels and bridges.
8 (2) From a point at or near the intersection of State
9 Route 60 and State Route 168 in Lawrence County; thence in a
10 general southerly direction to a point at or near the
11 intersection of State Route 60 and State Route 51 in Beaver
12 County.
13 (3) From a point in the vicinity north of Bradford at
14 the New York border; thence in a generally southerly
15 direction following and coincident where feasible, with
16 existing Route 219 to the vicinity south of Salisbury at the
17 Maryland border, together with connecting roads, storm water
18 management systems, tunnels and bridges.
19 (4) From a point beginning at or near Exit 11 of the
20 Pennsylvania Turnpike; thence extending in a northerly
21 direction along existing U.S. Route 220 to the intersection
22 of U.S. Route 220 and Interstate 80.
23 (5) The commission is also authorized, empowered and
24 directed to construct, operate and maintain a turnpike at
25 such specific locations and according to such schedule as
26 shall be deemed feasible and approved by the commission
27 beginning at a point on U.S. Route 40 at Brownsville in
28 Fayette County; thence in a southeasterly direction along
29 U.S. Route 40 to Uniontown; thence in a southerly direction
30 along State Route 857 to the West Virginia border.
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1 (b) Additional locations.--The commission is also authorized
2 and empowered to construct, operate and maintain a turnpike at
3 such specific locations as shall be approved by the commission
4 as follows:
5 (1) Along T.R. 119 in the Borough of Youngwood in
6 Westmoreland County in a northerly direction along T.R. 119,
7 T.R. 66 and T.R. 22 to the Indiana County line.
8 (2) From a point at or near the intersection of State
9 Route 65 and Crows Run Road in Beaver County, in a
10 southeasterly direction to a point at or near the Perry
11 Highway interchange of the Pennsylvania Turnpike.
12 (3) From a point at or near Exit 5 of the turnpike
13 northerly to Brookville, Jefferson County, to a point of
14 intersection with Interstate Route 80.
15 (4) From a point at the intersection of the
16 aforementioned turnpike extension and Interstate 70; thence
17 in a general southeasterly direction to a point at or near
18 the intersection of the Pennsylvania, Maryland and West
19 Virginia borders.
20 (5) From a point at or near the Pennsylvania Turnpike
21 System into various areas of Berks County in order to
22 complete the construction of the Inner Loop System and Outer
23 Loop System of highways surrounding the City of Reading and
24 to complete the missing links on Routes 222 to 422 to 1035.
25 (6) From a point at or near the Pennsylvania Turnpike
26 System into various areas of Delaware County in order to
27 complete the Mid-County Expressway and to construct a
28 turnpike extension between King of Prussia, Montgomery County
29 and a point on Interstate 95 in the vicinity of Chester,
30 Pennsylvania, to follow the corridor proposed by the
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1 Pennsylvania Department of Transportation for I-476 commonly
2 known as the Blue Route.
3 The commission, subject to the findings of its financial and
4 engineering feasibility studies for all of the above enumerated
5 projects, shall make the final determination whether any such
6 project shall proceed to the design or construction phase. The
7 commission shall determine and prescribe the exact details of
8 the routing between the fixed points indicated in this section,
9 but it shall not deviate from the overall general routes
10 connecting the points described herein. The commission is
11 further authorized and empowered to issue turnpike revenue bonds
12 of the Commonwealth, notes or other obligations, payable solely
13 from revenues of the commission, including tolls collected on
14 the various extensions authorized by this act and those tolls
15 collected on the Pennsylvania Turnpike System when all financing
16 bonds of that system shall have been redeemed or from such funds
17 as may be available to the commission for that purpose, to pay
18 the cost of any and all construction as otherwise authorized in
19 this act.
20 Section 4. Status of turnpike revenue bonds.
21 The turnpike revenue bonds, notes or other obligations issued
22 under the provisions of this act shall not be deemed to be a
23 debt of the Commonwealth or a pledge of the faith and credit of
24 the Commonwealth, but such bonds, notes or other obligations
25 shall be payable solely from revenues of the commission,
26 including tolls, or from such funds as may be available to the
27 commission for that purpose. All such bonds, notes or other
28 obligations shall contain a statement on their face that the
29 Commonwealth is not obligated to pay the same or the interest
30 thereon except from revenues of the commission, including tolls,
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1 or from such funds as may be available to the commission for
2 that purpose, and that the faith and credit of the Commonwealth
3 is not pledged to the payment of the principal or interest of
4 such bonds, notes or other obligations. The issuance of turnpike
5 revenue bonds, notes or other obligations under the provisions
6 of this act shall not directly or indirectly or contingently
7 obligate the Commonwealth to levy or to pledge any form of
8 taxation whatever therefor or to make any appropriation for
9 their payment.
10 Section 5. Exercise of commission powers deemed essential
11 government function.
12 The exercise by the commission of the powers conferred by
13 this act in the construction, operation and maintenance of the
14 southwestern turnpikes shall be deemed and held to be an
15 essential governmental function of the Commonwealth.
16 Section 6. Commission powers and duties enumerated.
17 The commission is authorized to:
18 (1) Maintain a principal office at such place as shall
19 be designated by the commission.
20 (2) Contract and be contracted with in its own name.
21 (3) Sue and be sued in its own name, plead and be
22 impleaded. Any and all actions at law or in equity against
23 the commission shall be brought only in Commonwealth Court.
24 (4) Have an official seal.
25 (5) Make necessary rules and regulations for its own
26 government.
27 (6) Acquire, hold, accept, own, use, hire, lease,
28 exchange, operate and dispose of, personal property, real
29 property and interests in real property, and to make and
30 enter into all contracts and agreements necessary or
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1 incidental to the performance of its duties and the execution
2 of its powers under this act, and to employ engineering,
3 traffic, architectural and construction experts and
4 inspectors, attorneys, and such other employees as may in its
5 judgment be necessary, and fix their compensation.
6 (7) The southwestern turnpikes when completed and opened
7 to traffic shall be maintained and repaired by and under the
8 control of the commission and all charges and costs for such
9 maintenance and repairs actually expended by the commission
10 shall be paid out of tolls. The southwestern turnpikes shall
11 also be policed and operated by such force of police,
12 tolltakers and other operating employees as the commission
13 may, in its discretion, employ.
14 (8) The commission shall have authority, at its own
15 cost, to provide grade separations with respect to all public
16 roads, State highways and interstate highways intersected by
17 the turnpikes and to change and adjust the lines and grades
18 thereof so as to accommodate the same to the design of such
19 grade separation. The damages incurred in changing and
20 adjusting the lines and grades of such public roads, State
21 highways and interstate highways shall be ascertained and
22 paid by the commission in the same manner as is provided for
23 by this act in regard to the location and construction of the
24 southwestern turnpikes.
25 (9) If the commission shall find it necessary to provide
26 a grade separation or change the site of any portion of any
27 interstate highway, State highway or public road, or vacate
28 the same, it shall cause it to be reconstructed and restored
29 forthwith, at the commission's own proper expense, on the
30 most favorable location and in as satisfactory a manner as
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1 the original road, or vacate it, as the case may be. The
2 method of acquiring the right-of-way and determining damages
3 incurred in changing the location of or vacating such road,
4 State highway or interstate highway shall be ascertained and
5 paid for by the commission in the same manner as is provided
6 for by this act in regard to the location and construction of
7 the southwestern turnpikes. In such cases, the plan of such
8 reconstruction and restoration or vacation shall be submitted
9 to the governing body of the appropriate municipality for
10 approval, and in the event of failure of the governing body
11 to approve the plan, then it shall be submitted to the
12 Department of Transportation for final approval. In the case
13 of State highways, the plan shall be submitted to the
14 Department of Transportation for its approval. The net
15 proceeds of any damages payable to any municipality or the
16 Department of Transportation under this paragraph which are
17 not expended on the relocation or restoration of the road or
18 highway in question may only be expended, in the case of a
19 municipality, for other road and bridge related expenses, and
20 in the case of the Department of Transportation, for highway
21 and bridge construction, reconstruction or maintenance in the
22 same engineering and maintenance district wherein the
23 relocated or vacated highway is located.
24 (10) Petition the court of common pleas of the county
25 wherein is situate any public road or part thereof affected
26 by the location therein of the turnpike, for the vacation,
27 relocation, or supply of the same, or any part thereof, with
28 the same force and effect as is now given by existing laws to
29 the inhabitants of any township of such county, and the
30 proceedings upon such petition, whether it be for the
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1 appointment of viewers or otherwise, shall be the same as
2 provided by existing law for similar proceedings upon such
3 petitions.
4 (11) The commission shall otherwise have all of the
5 powers and perform all of the duties prescribed by the act of
6 May 21, 1937 (P.L.774, No.211), referred to as the
7 Pennsylvania Turnpike Commission Act.
8 (12) Adequate compensation shall be made by the
9 commission out of funds provided under the authority of this
10 act for damages to all public or private property taken,
11 injured or destroyed in carrying out the powers granted by
12 this act, or such property may be restored or repaired and
13 placed in its original condition as nearly as practicable, as
14 the commission may deem it expedient in any particular case.
15 Section 7. Expenses and bonding of commission members.
16 (a) Reimbursement of expenses.--Each member of the
17 commission shall be reimbursed for the necessary expenses
18 incurred in the performance of their duties under the provisions
19 of this act.
20 (b) Fund for payments.--All expenses incurred in carrying
21 out the provisions of this act shall be paid solely from funds
22 provided under the authority of this act, and sufficient funds
23 shall be provided under the authority of this act to meet any
24 liability or obligation incurred in carrying out the provisions
25 of this act.
26 (c) Bonding of commissioners.--Before the issuance of any
27 turnpike revenue bonds, notes or other obligations under the
28 provisions of this act, each appointed member of the commission
29 shall execute a bond in the penalty of $25,000, and the
30 secretary and treasurer shall execute a bond in the penalty of
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1 $50,000, each bond to be approved by the Governor and to be
2 conditioned upon the faithful performance of the duties of his
3 office under the provisions of this act, which bonds shall be
4 filed in the office of the Secretary of the Commonwealth. If the
5 southwestern turnpike, as defined in this act, shall be
6 designated by the commission as part of the Pennsylvania
7 Turnpike System, as provided in the act of August 14, 1951
8 (P.L.1232, No.282), referred to as the Pennsylvania Turnpike
9 System Financing Act, the bonds provided for under this section
10 shall no longer be required, and if previously delivered, may be
11 cancelled.
12 Section 8. Acquisition of property rights by commission.
13 (a) Power to condemn.--The commission is hereby authorized
14 and empowered to condemn, by resolution, any lands, interests in
15 lands, property rights, rights-of-way, franchises, easements and
16 other property deemed necessary or convenient for the
17 construction and efficient operation of the southwestern
18 turnpikes or necessary in the restoration or relocation of
19 public or private property damaged or destroyed, and the date of
20 such resolution shall be the effective date of condemnation.
21 (b) Power to purchase.--The commission is hereby authorized
22 and empowered to acquire by purchase, whenever it shall deem
23 such purchase expedient, or otherwise accept if dedicated to it,
24 any lands, interests in lands, property rights, rights-of-way,
25 franchises, easements and other property deemed necessary or
26 convenient for the construction and efficient operation of the
27 turnpikes or necessary in the restoration or relocation of
28 public or private property damaged or destroyed, whether the
29 same had theretofore been condemned or otherwise, upon such
30 terms and at such price as may be considered by it to be
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1 reasonable and can be agreed upon between the commission and the
2 owner thereof, and to take title thereto in the name of the
3 commission. The net proceeds of any compensation or damages
4 payable to a municipality or the Department of Transportation
5 for any real property or interest therein obtained by the
6 commission pursuant to this act, less the cost of retiring any
7 bonded indebtedness on such property or interest, shall be used
8 exclusively in the case of a municipality, for road and bridge
9 slated expenses and, in the case of the Department of
10 Transportation, for highway and bridge construction,
11 reconstruction and maintenance in the same engineering and
12 maintenance district wherein the subject property is located.
13 Section 9. Procedural requirements of acquisition.
14 (a) Payment.--Title to any property condemned by the
15 commission shall be taken in the name of the commission. Prior
16 to physical entry upon the land, the commission shall be under
17 no obligation to accept and pay for any property condemned or
18 any costs incidental to any condemnation proceedings. However,
19 in any condemnation proceedings, the court having jurisdiction
20 of the suit, action or proceeding may make such orders as may be
21 just to the commission and to the owners of the property to be
22 condemned, and may require an undertaking or other security to
23 secure such owners against any loss or damage by reason of the
24 failure of the commission to enter upon, accept and pay for the
25 property, but neither such undertaking or security nor any act
26 or obligation of the commission shall impose any liability upon
27 the Commonwealth except such as may be paid from the funds
28 provided under the authority of this act.
29 (b) Vacation of condemned lands.--The commission, in its
30 discretion, may vacate any portion or all of the land condemned
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1 either prior to or after physical entry upon the land or any
2 part thereof and prior to final determination of damages. In
3 such cases, the commission shall be under no obligation to
4 accept and pay for any property condemned and subsequently
5 vacated. However, in any such case, the court having
6 jurisdiction of the suit, action or proceeding, may make such
7 orders as may be just to the commission and to the owners of the
8 property, and may require an undertaking or other security to
9 secure such owners against any and all loss or damages
10 occasioned to the owner from the time of the original
11 condemnation to the time of the modification thereof, but
12 neither such undertaking or security nor any act or obligation
13 of the commission shall impose any liability upon the
14 Commonwealth except such as may be paid from the funds provided
15 under the authority of this act.
16 (c) Power to enter private lands.--In addition to the
17 foregoing powers, the commission and its authorized agents and
18 employees may enter upon any lands, waters and premises in this
19 Commonwealth for the purpose of making surveys, soundings,
20 drillings and examinations, as it may deem necessary or
21 convenient for the purpose of this act, and such entry shall not
22 be deemed a trespass, nor shall an entry for such purposes be
23 deemed an entry under any condemnation proceedings which may be
24 then pending. However, the commission shall make reimbursement
25 for any actual damages resulting to such lands, waters and
26 premises as a result of such activities.
27 (d) Cooperation by political subdivisions.--All political
28 subdivisions and all public agencies and commissions of the
29 Commonwealth, notwithstanding any contrary provision of law, are
30 hereby authorized and empowered to lease, lend, dedicate, grant,
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1 convey or otherwise transfer to the commission upon its request
2 upon such terms and conditions as the proper authorities of such
3 political subdivisions, or public agencies and commissions of
4 the Commonwealth may deem reasonable and fair, and without the
5 necessity for any advertisement, order of court or other action
6 or formality, other than the regular and formal action of the
7 authorities concerned, any real property which may be necessary
8 or convenient to the effectuation of the authorized purposes of
9 the commission, including public roads and other real property
10 already devoted to public use.
11 Section 10. Entry and possession of property condemned.
12 Whenever the commission has condemned any lands, rights,
13 rights-of-way, easements and franchises, or interests therein,
14 as otherwise provided in this act, and has tendered a bond or
15 other security to secure the owner or owners for damages and the
16 same has been accepted, or if the acceptance of said bond has
17 been refused and the same has been filed in and approved by the
18 court of common pleas of the county in which the property is
19 located, or, in the case of property located in two or more
20 counties, then in any one of such counties, the commission shall
21 have the right to immediate possession of the property covered
22 by the bond and may enter thereon in the name of the commission.
23 If the owner, lessee or occupier of any of said premises or any
24 building or structure thereon shall refuse to remove his
25 personal property therefrom, or give up possession thereof, the
26 commission may proceed to obtain possession in the manner now
27 provided by law for the obtaining possession by the Secretary of
28 Transportation of occupied structures.
29 Section 11. Issuance of turnpike revenue bonds.
30 (a) Power to issue.--The commission is hereby authorized to
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1 provide, by resolution, at one time or from time to time, for
2 the issuance of turnpike revenue bonds of the Commonwealth for
3 the purpose of paying the cost, as defined in section 2, of the
4 southwestern turnpikes, which resolution shall recite an
5 estimate of such cost. The principal and interest of such bonds
6 shall be payable solely from revenues of the commission,
7 including tolls collected on the various extensions authorized
8 by this act and those tolls collected on the Pennsylvania
9 Turnpike System when all financing bonds of that system shall
10 have been redeemed or from such funds as may be available to the
11 commission for that purpose. The bonds shall be dated, shall
12 bear interest at such rate or rates acceptable to the
13 commission, payable semiannually, shall mature at such time or
14 times not exceeding 40 years from their date or dates, as may be
15 determined by the commission, and may be made redeemable before
16 maturity, at the option of the commission, at such price or
17 prices and under such terms and conditions as may be fixed by
18 the commission prior to the issuance of the bonds. The bonds may
19 be issued in series with varying provisions as to rates of
20 interest, maturity and other provisions not inconsistent with
21 this act, but all bonds, of whatever series, shall share ratably
22 in the tolls hereinafter pledged as security therefor. The
23 principal and interest of such bonds may be made payable in any
24 lawful medium. The commission shall determine the form of bonds,
25 including any interest coupons to be attached thereto, and shall
26 fix the denomination or denominations of the bonds and the place
27 or places of payment of principal and interest thereof, which
28 may be at any bank or trust company within or without the
29 Commonwealth. The bonds shall bear the facsimile signatures of
30 the Governor and of the chairman of the commission, and the
19830H0577B0645 - 17 -
1 facsimile of the official seal of the commission shall be
2 affixed thereto, and attested by the secretary and treasurer of
3 the commission, and any coupons attached thereto shall bear the
4 facsimile signature of the chairman of the commission. In case
5 any officer whose signature or a facsimile of whose signature
6 shall appear on any bonds or coupons shall cease to be such
7 officer before the delivery of such bonds, such signature or
8 such facsimile shall nevertheless be valid and sufficient for
9 all purposes, the same as if he had remained in office until
10 such delivery. All turnpike revenue bonds issued under the
11 provisions of this act shall have and are hereby declared to
12 have all the qualities and incidents of negotiable instruments
13 under the negotiable instruments law of the Commonwealth. The
14 bonds may be issued in coupon or in registered form, or both, as
15 the commission may determine, and provision may be made for the
16 registration of any coupon bonds as to principal alone and also
17 as to both principal and interest, and registered and coupon
18 bonds shall be interchangeable. The commission may sell the
19 bonds in such manner and for such price as it may determine to
20 be for the best interest of the Commonwealth. The proceeds of
21 such bonds shall be used solely for the payment of the cost of
22 the southwestern turnpikes, and shall be disbursed upon
23 requisition of the chairman of the commission under such
24 restrictions, if any, as the resolution authorizing the issuance
25 of the bonds, or the trust indenture hereinafter mentioned, may
26 provide. If the proceeds of such bonds, by error of calculation
27 or otherwise shall be less than the cost of the southwestern
28 turnpikes, additional bonds may, in like manner, be issued to
29 provide the amount of such deficit and, unless otherwise
30 provided in the resolution authorizing the issuance of the bonds
19830H0577B0645 - 18 -
1 or in the trust indenture, shall be deemed to be of the same
2 issue and shall be entitled to payment from the same fund,
3 without preference or priority of the bonds first issued. If the
4 proceeds of the bonds shall exceed the cost of the southwestern
5 turnpikes, the surplus shall be paid into the fund provided in
6 this act for the payment of principal and interest of such
7 bonds. Prior to the preparation of definitive bonds, the
8 commission may, under like restrictions, issue temporary bonds,
9 with or without coupons, exchangeable for definitive bonds upon
10 the issuance of the latter. The commission may also provide for
11 the replacement of any bond which shall become mutilated or be
12 destroyed or lost. Such turnpike revenue bonds may be issued
13 without any other proceedings or the happening of any other
14 conditions or things than those proceedings, conditions and
15 things which are specified and required by this act.
16 (b) Bonds as securities.--Such bonds are hereby made
17 securities in which all State and municipal officers and
18 administrative departments, boards and commissions of the
19 Commonwealth; all banks, bankers, savings banks, trust
20 companies, saving and loan associations, investment companies
21 and other persons carrying on a banking business; all insurance
22 companies, insurance associations and other persons carrying on
23 an insurance business; and all administrators, executors,
24 guardians, trustees and other fiduciaries; and all other persons
25 whatsoever who now or may hereafter be authorized to invest in
26 bonds or other obligations of the Commonwealth, may properly and
27 legally invest any funds, including capital, belonging to them
28 or within their control, and said bonds are hereby made
29 securities which may properly and legally be deposited with and
30 received by any State or municipal officers or agency of the
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1 Commonwealth, for any purpose for which the deposit of bonds or
2 other obligations of the Commonwealth is now or may hereafter be
3 authorized by law.
4 (c) Power to borrow money.--The commission is hereby
5 authorized to borrow money from time to time to provide for
6 preliminary or interim financing, up to but not exceeding the
7 estimated total cost of the turnpikes, and to evidence such
8 borrowing by the issuance of turnpike revenue notes or other
9 revenue obligations of the Commonwealth, and, in its discretion,
10 to pledge as collateral for such notes or other obligations,
11 turnpike revenue bonds issued under the provisions of this act,
12 and to renew any such notes or other obligations from time to
13 time, and the payment or retirement of such notes or other
14 obligations shall be considered to be payment of the cost of
15 such project. All such notes or other obligations shall be
16 executed by the same persons in the same manner and with the
17 same effect as provided herein for the execution of revenue
18 bonds. All such notes or other obligations shall contain a
19 statement on their face that the Commonwealth is not obligated
20 to pay the same or interest thereon, except from revenues of the
21 commission, including tolls, or from such funds as may be
22 available to the commission for that purpose, and that the faith
23 and credit of the Commonwealth is not pledged to the payment of
24 the principal or interest of such notes or other obligations.
25 The issuance of turnpike notes or other obligations under the
26 provisions of this act shall not directly or indirectly or
27 contingently obligate the Commonwealth to levy or to pledge any
28 form of taxation therefor or make any appropriation for their
29 payment.
30 (d) Legal investments.--All State and municipal officers and
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1 administrative departments, boards and commissions of the
2 Commonwealth; all banks, bankers, savings banks, trust
3 companies, saving and loan associations, investment companies
4 and other persons carrying on a banking business; all insurance
5 companies, insurance associations and other persons carrying on
6 an insurance business, may properly and legally invest any
7 funds, including capital, belonging to them or within their
8 control, in such notes or other obligations, or loan any such
9 funds and accept as evidence of the same such notes or other
10 obligations.
11 (e) Bonds to be negotiable.--All such notes or other
12 obligations shall have and are hereby declared to have all the
13 qualities and incidents of negotiable instruments under the laws
14 of the Commonwealth.
15 Section 12. Obligation proceeds restricted and lien created.
16 All moneys received from any bonds, notes or other
17 obligations issued pursuant to this act shall be applied solely
18 to the payment of the cost of the southwestern turnpikes or to
19 the appurtenant fund, and there shall be and hereby is created
20 and granted a lien upon such moneys, until so applied, in favor
21 of holders of such bonds, notes or other obligations or the
22 trustee hereinafter provided for in respect of such bonds, notes
23 or other obligations.
24 Section 13. Trust indenture authorized.
25 In the discretion of the commission, such bonds, notes or
26 other obligations may be secured by a trust indenture by and
27 between the commission and a corporate trustee, which may be any
28 trust company or bank having the powers of a trust company,
29 within or outside of this Commonwealth. Such trust indenture may
30 pledge or assign tolls and revenue to be received, but shall not
19830H0577B0645 - 21 -
1 convey or mortgage the southwestern turnpikes or any part
2 thereof. Either the resolution providing for the issuance of
3 such bonds, notes or other obligations or such trust indenture
4 may contain such provisions for protecting and enforcing the
5 rights and remedies of the bondholders or holders of notes or
6 other obligations as may be reasonable and proper and not in
7 violation of law, including covenants setting forth the duties
8 of the commission in relation to the acquisition of properties
9 and the construction, maintenance, operation and repair, and
10 insurance of, the turnpikes, and the custody, safe-guarding and
11 application of all moneys. It shall be lawful for any bank or
12 trust company incorporated under the laws of this Commonwealth
13 to act as a depository of the proceeds of bonds, notes or other
14 obligations or revenues, and to furnish such indemnity bonds or
15 to pledge such securities as may be required by the commission.
16 The trust indenture may set forth the rights and remedies of the
17 bondholders or holders of notes or other obligations and of the
18 trustee, and may restrict the individual right of action of
19 bondholders or holders of notes or other obligations as is
20 customary in trust indentures securing bonds, debentures of
21 corporations, notes or other obligations. In addition to the
22 foregoing, the trust indenture may contain such other provisions
23 as the commission may deem reasonable and proper for the
24 security of bondholders or holders of notes or other
25 obligations. All expenses incurred in carrying out the trust
26 indenture may be treated as part of the cost of maintenance,
27 operation and repair of the southwestern turnpikes.
28 Section 14. Commission and obligations tax exempt.
29 The accomplishment by the commission of the authorized
30 purposes stated in this act being for the benefit of the people
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1 of the Commonwealth and for the improvement of their commerce
2 and prosperity, in which accomplishment the commission will be
3 performing essential governmental functions, the commission
4 shall not be required to pay any taxes or assessments on any
5 property acquired or used by it for the purposes provided in
6 this act, and the bonds, notes or other obligations issued by
7 the commission, their transfer and the income therefrom,
8 including any profits made on the sale thereof, shall at all
9 times be free from taxation within the Commonwealth.
10 Section 15. Collection and disposition of tolls and other
11 revenue.
12 (a) Tolls on new turnpike.--Consistent with the unique and
13 urban character of the southwestern extensions, the commission
14 is hereby authorized to fix, and to revise from time to time,
15 tolls for the use of the turnpikes and the different parts or
16 sections thereof, and to charge and collect the same, and to
17 contract with any person, partnership, association or
18 corporation desiring the use of any part thereof, including the
19 right-of-way adjoining the paved portion, for placing thereon
20 telephone, telegraph, electric light or power lines, gas
21 stations, garages, stores, hotels, restaurants, and advertising
22 signs, or for any other purpose, except for tracks for railroad
23 or railway use, and to fix the terms, conditions, rents and
24 rates of charges for such use. Tolls shall be so fixed and
25 adjusted as to provide a fund at least sufficient with other
26 revenues of the southwestern turnpikes, if any, to pay:
27 (1) the cost of maintaining, repairing and operating the
28 southwestern turnpikes; and
29 (2) the bonds, notes or other obligations and the
30 interest thereon, and all sinking fund requirements, and
19830H0577B0645 - 23 -
1 other requirements provided by the resolution authorizing the
2 issuance of the bonds, notes or other obligations, or by the
3 trust indenture, as the same shall become due.
4 (b) Sole authority to abolish tolls.--Tolls shall not be
5 subject to supervision or regulation by any other State
6 commission, board, bureau or agency. The tolls and all other
7 revenues derived from the southwestern turnpikes, except such
8 part thereof as may be required to pay the cost of maintaining,
9 repairing and operating the turnpikes and to provide such
10 reserve therefor as may be provided for in the resolution
11 authorizing the issuance of the bonds, notes or other
12 obligations, or in the trust indenture, shall be set aside, at
13 such regular intervals as may be provided in such resolution or
14 such trust indenture, in a sinking fund, which is hereby pledged
15 to and charged with the payment of:
16 (1) the interest upon such bonds, notes or other
17 obligations, as such interest shall fall due;
18 (2) the principal of the bonds, notes or other
19 obligations, as the same shall fall due;
20 (3) the necessary fiscal agency charges for paying
21 principal and interest; and
22 (4) any premium upon bonds retired by call or purchase,
23 as herein provided.
24 (c) Use of sinking fund.--The use and disposition of the
25 sinking fund shall be subject to such regulations as may be
26 provided in the resolution authorizing the issuance of bonds,
27 notes or other obligations, or in the trust indenture, but,
28 except as may otherwise be provided in the resolution or trust
29 indenture, the sinking fund shall be a fund for the benefit of
30 all bonds, notes or other obligations issued under this act,
19830H0577B0645 - 24 -
1 without distinction or priority of one over another. Subject to
2 the provisions of the resolutions authorizing the issuance of
3 bonds, notes or other obligations, or of the trust indenture,
4 any moneys in the sinking fund in excess of an amount equal to
5 one year's interest on all bonds, notes or other obligations
6 then outstanding may be applied to the purchase or redemption of
7 bonds, notes or other obligations. All bonds, notes or other
8 obligations so purchased or redeemed shall forthwith be
9 cancelled and shall not again be issued.
10 Section 16. Revenue refunding bonds.
11 The commission is hereby authorized to provide, by
12 resolution, for the issuance of turnpike revenue refunding bonds
13 of the Commonwealth for the purpose of refunding any turnpike
14 revenue bonds, notes or other obligations issued under the
15 provisions of this act and then outstanding. The issuance of
16 such turnpike revenue refunding bonds, the maturities and other
17 details thereof, the rights of the holders thereof, and the
18 duties of the Commonwealth and of the commission in respect to
19 the same, shall be governed by the provisions of this act
20 insofar as the same may be applicable.
21 Section 17. Rights of obligation holders and trustees.
22 Any holder of bonds, notes or other obligations issued under
23 the provisions of this act, or any of the coupons attached
24 thereto, and the trustee under the trust indenture, if any,
25 except to the extent the rights herein given may be restricted
26 by resolution passed before the issuance of the bonds, notes or
27 other obligations, or by the trust indenture, may, either at law
28 or in equity, by suit, action, mandamus or other proceedings,
29 protect and enforce any and all rights granted hereunder or
30 under such resolution or trust indenture, and may enforce and
19830H0577B0645 - 25 -
1 compel performance of all duties required by this act or by such
2 resolution or trust indenture to be performed by the commission
3 or any officer thereof, including the fixing, charging and
4 collecting of tolls for the use of the turnpikes.
5 Section 18. Termination of commission.
6 When all bonds, notes or other obligations and the interest
7 thereon shall have been paid, or a sufficient amount for the
8 payment of all bonds, notes or other obligations and the
9 interest to maturity thereon shall have been set aside in trust
10 for the benefit of the holders of such bonds, notes or other
11 obligations and shall continue to be held for that purpose, the
12 turnpike and the connecting roads, tunnels and bridges shall
13 become a part of the system of State highways and shall be
14 maintained by the Department of Transportation free of tolls.
15 Thereupon, the commission shall be dissolved, and all funds of
16 the commission not required for the payment of the bonds, notes
17 or other obligations, and all machinery, equipment and other
18 property belonging to the commission, shall be vested in the
19 Department of Transportation.
20 Section 19. Construction of act.
21 This act shall be deemed to provide an additional and
22 alternative method for the doing of things authorized thereby,
23 and shall be regarded as supplemental and additional to powers
24 conferred by other laws, and shall not be regarded as in
25 derogation of any powers now existing. Such sections, being
26 necessary for the welfare of the Commonwealth and its
27 inhabitants, shall be liberally construed to effect the purposes
28 thereof.
29 Section 20. Repeals.
30 All acts and parts of acts are repealed insofar as they are
19830H0577B0645 - 26 -
1 inconsistent with this act.
2 Section 21. Effective date.
3 This act shall take effect in 60 days.
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