PRINTER'S NO. 5
No. 5 Session of 1975
INTRODUCED BY FINEMAN, BONETTO, M. E. MILLER,JR., GALLAGHER,
MILLIRON, REED, BERLIN, FEE, LEDERER, WOJDAK, PIEVSKY, PITTS,
DeMEDIO, RAPPAPORT, HOPKINS, LAUDADIO, PERRY, OLIVER,
GREENFIELD, TOLL, ROMANELLI, GREEN, O'KEEFE AND GILLESPIE,
JANUARY 20, 1975
REFERRED TO COMMITTEE ON TRANSPORTATION, JANUARY 20, 1975
AN ACT
1 Promoting the welfare of the people of the Commonwealth by
2 providing for the establishment of a Statewide system of
3 public transportation; creating the Commonwealth Public
4 Transportation Authority as a body corporate and politic with
5 power to acquire, construct, improve, equip, operate and
6 lease transportation projects, and to fix the rentals, fees
7 and charges for the use thereof; authorizing and regulating
8 the issuance of bonds by the authority and providing for the
9 payment of such bonds, and the rights of the holders thereof;
10 authorizing the authority to enter into agreements, including
11 agreements for the joint ownership of transportation
12 assistance projects, with the government of the United
13 States, any Federal or State agency, any political
14 subdivision of the Commonwealth, any other authority
15 organized by any thereof, any transportation company, or with
16 any combination of the foregoing; granting to the authority
17 the right of eminent domain; authorizing State agencies to
18 lease transportation projects from the authority and to
19 cooperate with local bodies; authorizing gifts to the
20 authority by political subdivisions and corporations;
21 empowering the authority to sell and convey transportation
22 projects and providing that no debt of the Commonwealth shall
23 be incurred in the exercise of any of the powers granted by
24 this act.
25 The General Assembly of the Commonwealth of Pennsylvania
26 hereby enacts as follows:
27 Section 1. Short Title.--This act shall be known and may be
1 cited as the "Commonwealth Public Transportation Authority Act."
2 Section 2. Definitions.--The following terms, whenever
3 referred to or used in this act, shall have the following
4 meanings unless the context clearly indicates otherwise:
5 "Authority" shall mean the body created by section 3 of this
6 act.
7 "Board" shall mean the governing body of the authority.
8 "Bonds" shall mean and include any negotiable or non-
9 negotiable notes, bonds, bond anticipation notes, equipment
10 trust certificates and other evidences of indebtedness or
11 obligations of the authority.
12 "Construction" shall mean and include acquisition and
13 construction, and the term "to construct" shall mean and include
14 to acquire and to construct, all in such manner as may be deemed
15 desirable.
16 "Equipment" and "furnishings" shall mean and include any
17 equipment and furnishings whatsoever as may be deemed desirable
18 and required by the authority or by the lessee or a sublessee of
19 a project and approved by the board for the use and occupancy of
20 such project, and the terms "to equip" or "to furnish" shall
21 mean and include the installation of such equipment and
22 furnishings.
23 "Federal agency" shall mean and include the United States of
24 America, the President of the United States of America, and any
25 department of, or corporation, agency, or instrumentality
26 heretofore or hereafter created, designated, or established by
27 the United States of America.
28 "Improvement" shall mean and include extension, enlargement,
29 equipping, furnishing and improvement, and the term "to improve"
30 shall mean and include to extend, to enlarge, to equip, to
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1 furnish and to improve, all in such manner as may be deemed
2 desirable.
3 "Local transportation organization" shall mean any political
4 subdivision or any mass transportation or port authority now or
5 hereafter organized under the laws of Pennsylvania or pursuant
6 to an interstate compact or otherwise empowered to render
7 transportation service or assist in the rendering of
8 transportation service in a limited area in the Commonwealth of
9 Pennsylvania, even though it may also render transportation
10 service in adjacent states.
11 "Person" shall mean and include natural persons, firms,
12 associations, corporations, business trusts, partnerships and
13 public bodies, including local transportation organizations.
14 "Project" shall mean and include any system of public
15 passenger transportation, including but not limited to any
16 railway, street railway, subway, elevated and monorail passenger
17 mail rolling stock, including self-propelled and gallery cars,
18 locomotives, passenger buses, and wires, poles and equipment for
19 the electrification of any of the foregoing, rails, tracks,
20 roadbeds, guideways, elevated structures, buildings, stations,
21 terminals, docks, shelters, airports and parking areas for use
22 in connection with public passenger transportation systems,
23 interconnecting lines and tunnels to provide passenger service
24 connections between transportation systems, transportation
25 routes, corridors, and rights-of-way for any thereof, (but not
26 for roads for public highways), signal and communication systems
27 necessary or desirable for the construction, operation or
28 improvement of the public passenger transportation system
29 involved, or any improvement of or equipment or furnishings for
30 any of the foregoing or any part, or fractional and undivided
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1 co-ownership interest in any one or combination of any of the
2 foregoing, that may by resolution of the board be designated as
3 a project.
4 "Property" shall mean all property, real, personal or mixed,
5 tangible or intangible, or any interest therein including
6 fractional and undivided co-ownership interests.
7 "State agency" shall mean and include any department, board,
8 commission, authority, agency or office of the Commonwealth
9 whether or not under the policy supervision or control of the
10 Governor.
11 "Transportation company" shall mean and include any person,
12 firm, or corporation rendering public passenger transportation
13 service, with or without the rendering of other service in this
14 State pursuant to common carrier authorization from the
15 Pennsylvania Public Utility Commission or the Interstate
16 Commerce Commission.
17 Section 3. Commonwealth Public Transportation Authority.--
18 (a) There is hereby created a body corporate and politic,
19 constituting a public corporation and government instrumentality
20 by the name of the "Commonwealth Public Transportation
21 Authority," the board of members of which shall be composed of
22 the following: the Secretary of Transportation, the Secretary of
23 Commerce, the Secretary of Community Affairs, the Secretary of
24 Property and Supplies, the Speaker of the House of
25 Representatives, the President Pro Tempore of the Senate, the
26 Minority Leader of the House of Representatives and the Minority
27 Leader of the Senate and their respective successors in office
28 and seven additional members who shall be appointed by the
29 Governor with the advice and consent of the Senate.
30 (b) The members of the authority initially appointed by the
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1 Governor shall continue in office for terms of 1 to 7 years,
2 respectively, from the date of their appointment and until their
3 respective successors shall be duly appointed and qualified, the
4 term of each appointed member to be designated by the Governor
5 at the time of his appointment; but their successors shall each
6 be appointed for a term of 7 years, except that any person
7 appointed to fill a vacancy shall serve only for the unexpired
8 term, and any appointed member of the authority shall be
9 eligible for reappointment.
10 (c) The members of the authority shall be entitled to no
11 compensation for their services as members, but shall be
12 entitled to reimbursement for all necessary expenses incurred in
13 connection with the performance of their duties as members.
14 Section 4. Purposes of Authority.--The authority is created
15 for the purpose of coordinating all transportation systems in
16 this Commonwealth into an interlinking Statewide transportation
17 system with particular emphasis on making provision for adequate
18 public transportation in rural, suburban and other areas where
19 there exist no adequate public transportation systems by:
20 (1) Constructing, improving, equipping, maintaining,
21 operating and leasing, as lessee or lessor, at any stage of
22 construction or after completion, any project or projects.
23 (2) Acquiring by purchase or assignment or otherwise, all or
24 part, of any construction or acquisition contracts, from any
25 State agency, transportation company, or any local
26 transportation organization relating to any project or projects
27 at any stage of construction, or after completion.
28 Section 5. Powers of Authority.--(a) The authority is hereby
29 granted and shall have and may exercise all powers necessary or
30 convenient for the carrying out of the aforesaid purposes,
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1 including but not limited to the following rights and powers:
2 (1) To have perpetual existence as a corporation.
3 (2) To sue and be sued, implead and be impleaded, complain
4 and defend in the courts of a county in which a project involved
5 in such suit, or any part thereof, is located, but otherwise
6 only in the Commonwealth Court, to petition the Interstate
7 Commerce Commission, Pennsylvania Public Utility Commission, or
8 other State or Federal regulatory body or Federal agency; or
9 join in any proceeding before any such bodies or courts in any
10 matter affecting the financing or operating of any project of
11 the authority, but nothing in this section shall be construed as
12 subjecting the authority to any substantive liability or to the
13 jurisdiction of any other court, Federal or State, to which it
14 would not otherwise be subject.
15 (3) To adopt, use, and alter at will a corporate seal.
16 (4) To establish a principal office and such other office or
17 offices as may be necessary for the carrying on of its duties.
18 (5) To make bylaws for the management and regulation of its
19 affairs.
20 (6) To appoint an executive director and other officers,
21 agents, employees and servants; to prescribe their duties and to
22 fix their compensation.
23 (7) To acquire by purchase or lease, construct and improve,
24 hold and use any property necessary or desirable for carrying
25 out the purposes of the authority; to sell, lease as lessor,
26 transfer and dispose of any such property; and to do all acts
27 and things necessary or convenient to carry out the powers
28 granted to it by this act or any other acts.
29 (8) To make contracts of every name and nature, and to
30 execute all instruments necessary or convenient for the carrying
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1 on of its business.
2 (9) Except where the act of July 20, 1968 (P.L.550, No.217),
3 known as the "Capital Facilities Debt Enabling Act," is
4 applicable, to borrow money, make and issue bonds and refunding
5 bonds of the authority, and to secure the payment of such bonds,
6 or any series thereof, by pledge or deed of trust of all or any
7 of its revenues, rentals and receipts, and to make such
8 agreements with the purchasers or holders of such bonds, or with
9 others, in connection with any such bonds, whether issued or to
10 be issued, as the authority shall deem advisable, and in general
11 to provide for the security for said bonds and the rights of the
12 holders thereof.
13 (10) Without limiting clause (9) of this subsection, to
14 borrow money from and accept grants from, and to enter into
15 contracts, leases or other transactions with any local
16 transportation organization or with any Federal or State agency
17 either alone or in cooperation with one or more local
18 transportation organizations, and to receive appropriations from
19 the General Assembly and moneys from State agencies, including
20 moneys in the Motor License Fund, except where prohibited by
21 law.
22 (11) To fix, alter, charge, and collect rates, rentals and
23 other charges for the use of the projects of the authority at
24 reasonable rates, to be determined by it, for the purpose of
25 providing for the payment of the expense of the authority, the
26 construction, improvement, repair, furnishing, operation and
27 maintenance of its projects, the payment of the principal of and
28 interest on its bonds, and to fulfill the terms and provisions
29 of any agreements made with the purchasers or holders of any
30 such bonds.
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1 (12) To have the power of eminent domain in accordance with
2 the act of June 22, 1964 (P.L.84, No.6), known as the "Eminent
3 Domain Code, or as hereinafter authorized when acting together
4 with any local transportation organization.
5 (13) To pledge, hypothecate, or otherwise encumber all or
6 any of the revenues or receipts of the authority as security for
7 all or any of the bonds of the authority.
8 (b) Except as provided otherwise in the "Capital Facilities
9 Debt Enabling Act" for notes and bonds issued pursuant to that
10 act, the authority shall have no power at any time or in any
11 manner to pledge the credit or taxing power of the Commonwealth
12 or any of its political subdivisions, nor shall any of its
13 bonds, obligations or debts be deemed to be obligations of the
14 Commonwealth or any of its political subdivisions, nor shall the
15 Commonwealth nor any of its political subdivisions be liable for
16 the payment of principal of, or interest on, such bonds,
17 obligations or debts.
18 Section 6. Cooperative Agreements and Federal Aid.--(a) The
19 authority is hereby authorized to enter into agreements
20 providing for mutual cooperation between it and any Federal or
21 State agency to the extent authorized by law, between it and any
22 Federal or State agency and any local transportation
23 organization, or transportation company, or one or more of them,
24 in any or all projects, including joint applications for Federal
25 grants. Without limitation of the foregoing, the authority and
26 any State agency, with the approval of the Governor, are
27 authorized to enter into commitments with any Federal agency,
28 alone, or jointly with any local transportation organization, or
29 transportation company or both of them, to provide, out of the
30 net proceeds of a sale of the authority's bonds, the cash to be
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1 supplied by the Commonwealth, as its portion of the cost of any
2 capital items in any Federally aided transportation program.
3 (b) It is the purpose and intent of this act to authorize
4 the authority and the authority is hereby given the power and
5 authority, in addition to any powers conferred upon the
6 authority by any other provision of this act, to do any and all
7 other things necessary or desirable to secure the financial aid
8 or cooperation of any Federal agency in any of the authority's
9 projects, and to do and perform all things which may be required
10 by any statute of the United States of America or by the lawful
11 requirements of any Federal agency authorized to administer any
12 program of Federal aid to transportation.
13 Section 7. Bonds.--(a) The bonds of the authority shall be
14 authorized by resolution of the board or by and pursuant to an
15 indenture of trust and shall be of such series, bear such date
16 or dates, be stated to mature at such time or times, not
17 exceeding 30 years from their respective dates, be issued as
18 serial or term bonds, or as part serial and part term bonds, or
19 any combination thereof, or as a single bond payable in
20 installments, bear interest payable annually, semi-annually or
21 quarterly, be in such denominations, be in such form, either as
22 negotiable commercial paper, or as investment securities in
23 bearer or registered form, carry such registration,
24 exchangeability and interchangeability privileges, be payable in
25 such medium of payment and at such place or places, be subject
26 to such terms of redemption at such prices not exceeding 106% of
27 the principal amount thereof, and be entitled to such priorities
28 in the revenues, rentals or receipts of the authority as such
29 resolution or indenture may provide. The bonds shall be signed
30 manually or by facsimile by such officers as the authority shall
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1 determine, and coupon bonds shall have attached thereto interest
2 coupons bearing the facsimile signature of the treasurer of the
3 authority, all as may be prescribed in such resolution or
4 indenture. No bond shall be issued or delivered without at least
5 one manual signature, which may be that of an officer of the
6 fiscal agent or of the trustee under the relevant resolution or
7 indenture. Any such bonds may be issued and delivered
8 notwithstanding that one or more of the officers signing such
9 bonds, or the treasurer whose facsimile signature shall be upon
10 the coupons or any thereof, shall have ceased to be such officer
11 or officers at the time when such bonds shall actually be
12 delivered.
13 (b) Said bonds shall be sold to the highest responsible
14 bidder or bidders proposing the lowest net interest cost to the
15 authority, determined by computing the interest on the bonds to
16 their stated maturity dates and adding thereto the discount or
17 subtracting therefrom the premium specified in such bid after
18 public notice, by two advertisements in not less than three or
19 more than five newspapers of large general circulation in
20 different parts of the Commonwealth, the first advertisement to
21 be published not less than 20 days and the second not less than
22 5 days before the day fixed for the opening of bids. No bonds
23 shall be sold if the net interest cost computed to stated
24 maturity dates of the bonds of the money received for any issue
25 of such bonds shall exceed 6% a year. The notice shall contain a
26 general description of the bonds, the manner, place and time of
27 the sale, or the time limit for the receipt of proposals, the
28 name of the officer to whom, or to whose designee, bids or
29 proposals shall be delivered and a statement of the terms and
30 conditions of sale: Provided, however, That any of said bonds
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1 may be sold to the State Employees' Retirement Board, School
2 Employees' Retirement Board, or to any other custodial board or
3 fund, or to the State Employees' Retirement Fund, or by private
4 placement with a group of not more than twenty-five ultimate
5 investors who purchase for investment and not with a view to
6 distribution, without advertisement or competitive bidding.
7 Pending the preparation of the definitive bonds, interim
8 receipts or temporary bonds may be issued to the purchaser or
9 purchasers of such bonds and may contain such terms and
10 conditions as the authority may determine.
11 (c) Any resolution or indenture authorizing any bonds may
12 contain provisions which shall be part of the contract with the
13 holders thereof as to:
14 (1) pledging the full faith and credit of the authority (but
15 not of the Commonwealth or any political subdivision thereof)
16 for such bonds or restricting the same to all or any of the
17 revenues, rentals or receipts of the authority from all or any
18 projects or properties;
19 (2) the construction, improvement, maintenance and repair of
20 any project or projects and the duties of the authority with
21 reference thereto;
22 (3) the terms and provisions of the bonds;
23 (4) limitations on the purposes to which the proceeds of the
24 bonds then or thereafter to be issued, or of any loan or grant
25 by any Federal agency may be applied;
26 (5) the rate of the rentals and other charges for use of the
27 facilities of, or for the services rendered by the authority,
28 including limitations upon the power of the authority to modify
29 any leases or other agreements pursuant to which any rentals, or
30 other charges are payable;
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1 (6) the setting aside of reserves or sinking funds and the
2 regulations and disposition thereof;
3 (7) limitations on the issuance of additional bonds;
4 (8) any terms and provisions for the security of the bonds
5 or under which the same may be issued; and
6 (9) any other or additional agreements with the holders of
7 the bonds.
8 (d) The authority is authorized to combine any one or more
9 projects for financing and leasing purposes and to issue one or
10 more series of bonds to finance such combined projects:
11 Provided, That the aggregate of the rentals to be received under
12 the leases of such projects, shall be at least sufficient to pay
13 the current expenses of the authority allocable to the projects
14 and to provide for the payment of the principal of and interest
15 upon such bonds as the same may be stated to mature.
16 (e) The authority may enter into any indentures of trust, or
17 other agreements with any bank or trust company or other person
18 or persons in the United States having power to enter into the
19 same, including any Federal agency, or may designate any such as
20 fiscal agent under a bond resolution, in order to provide for
21 the security for such bonds, and may assign and pledge all or
22 any of the revenues, rentals or receipts of the authority
23 thereunder. Such indenture, resolution, or other agreement may
24 contain such provisions as may be customary in such instruments
25 or as the authority may authorize, including (but without
26 limitation) provisions as to:
27 (1) the construction, improvement, maintenance and repair of
28 any project or projects and the duties of the authority with
29 reference thereto;
30 (2) the application of funds and the safeguarding of funds
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1 on hand, invested, or on deposit;
2 (3) the rights and remedies of said trustees or fiscal agent
3 and the holders of the bonds (which may include restrictions
4 upon the individual right of action of such bondholders); and
5 (4) the terms and provisions of the bonds or the resolutions
6 or indentures authorizing the issuance of the same.
7 Section 8. Remedies of Bondholders.--(a) The rights and the
8 remedies herein conferred upon or granted to the bondholders
9 shall be in addition to and not in limitation of any rights and
10 remedies lawfully granted to such bondholders by the resolution
11 or indenture providing for the issuance of bonds. If the
12 authority shall default in the payment of the interest on any of
13 the bonds after the same shall become due, and such default
14 shall continue for a period of 30 days, or if the authority
15 shall default in the payment of principal after the same shall
16 become due whether at maturity or upon any unrevoked call for
17 redemption, or if the authority shall fail or refuse to comply
18 with the provisions of this act or shall default in any
19 agreement made with the holders of the bonds, the holders of 25%
20 in aggregate principal amount of bonds then outstanding under
21 the indenture or bond resolution involved, by instrument or
22 instruments filed in the office of the recorder of deeds of the
23 County of Dauphin and proved or acknowledged in the same manner
24 as a deed to be recorded, may (except as such right may be
25 limited under the provisions of any indenture or other agreement
26 as aforesaid) appoint a trustee to represent the bondholders for
27 the purposes herein provided. Such trustee or any trustee under
28 any indenture or the fiscal agent under any resolution or other
29 agreement may, and upon written request of the holders of 25%
30 (or such other percentage as may be specified in any resolution,
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1 indenture or other agreement aforesaid) in principal amount of
2 the bonds then outstanding under such indenture or resolution
3 shall, in his or its own name--
4 (1) By mandamus or other suit, action or proceeding at law
5 or in equity, in the Commonwealth Court enforce all rights of
6 the bondholders, including the right to require the authority to
7 collect rates, rentals and other charges, adequate to carry out
8 any agreement as to, or pledge of, the revenues or receipts of
9 the authority and to require the authority to carry out any
10 other agreements with, or for the benefit of, the bondholders,
11 and to perform its and their duties under this act.
12 (2) Bring suit upon the bonds in the Commonwealth Court.
13 (3) By action or suit in equity, in the Commonwealth Court
14 require the authority to account as if it were the trustee of an
15 express trust for the bondholders.
16 (4) By action or suit in equity, in the Commonwealth Court
17 enjoin any acts or things which may be unlawful, or in violation
18 of the rights of the bondholders.
19 (5) By notice in writing to the authority, declare all bonds
20 due and payable and, if all defaults shall be made good, then
21 with the consent of the holders of 25% (or such other percentage
22 as may be specified in any indenture, resolution or other
23 agreement aforesaid) of the principal amount of the bonds then
24 outstanding, to annul such declaration and its consequences.
25 (b) Any trustee, whether appointed as aforesaid or acting
26 under an indenture or other agreement, or any fiscal agent
27 acting under a bond resolution, and whether or not all bonds
28 issued under such indenture or resolution have been declared due
29 and payable, shall be entitled as of right to the appointment of
30 a receiver, who may (to the same extent that the authority
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1 itself could so do) enter and take possession of the facilities
2 of the authority, or of the authority's fractional and undivided
3 interest in any project, or any parts thereof, the revenues,
4 rentals or receipts from which are or may be applicable to the
5 payment of the bonds so in default, and operate and maintain the
6 same, or contract with any co-owners for the operation and
7 maintenance of the same, and collect and receive all rentals and
8 other revenues thereafter arising therefrom in the same manner
9 as the authority might do, and shall deposit all such moneys in
10 a separate account and apply the same in such manner as the
11 court shall direct. In any suit, action or proceeding by the
12 trustee, or fiscal agent, the fees, counsel fees and expenses of
13 the trustee or of the fiscal agent and of the receiver, if any,
14 and all costs and disbursements allowed by the court, shall be a
15 first charge on any revenues and receipts derived from the
16 project or projects of the authority, the revenues or receipts
17 from which are or may be applicable to the payment of the bonds
18 so in default. Such trustee or fiscal agent shall, in addition
19 to the aforegoing, have and possess all the powers necessary or
20 appropriate for the exercise of any functions specifically set
21 forth herein or incident to the general representation of the
22 bondholders in the enforcement and protection of their rights.
23 (c) In addition to all other rights and other remedies, any
24 holder of bonds of the authority shall have the right, subject
25 to any limitations contained in the relevant indenture or
26 resolution, by mandamus or other suit, action or proceeding at
27 law or in equity in the Commonwealth Court to enforce his rights
28 against the authority, including the right to require the
29 authority to collect fees, rentals and other charges adequate to
30 carry out any agreement with such bondholder as to, or pledge
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1 of, such fees, rentals or other charges, or income, revenues,
2 and receipts, and to require the authority to carry out any of
3 its covenants and agreements with the bondholders and to perform
4 its and their duties under this act: Provided, however, That
5 nothing in this section or any other section of this act shall
6 authorize any receiver appointed pursuant to this act for the
7 purpose of operating and maintaining any project or projects of
8 the authority, to sell, assign, mortgage, or otherwise dispose
9 of any of the assets of whatever kind and character belonging to
10 the authority. It is the intention of this act to limit the
11 powers of such receiver to the operation and maintenance of the
12 projects of the authority, as a successor of the authority as
13 the court shall direct, and no holder of bonds of the authority,
14 nor any trustee, shall ever have the right in any suit, action
15 or proceeding at law or in equity, to compel a receiver, nor
16 shall any receiver ever be authorized, or any court be empowered
17 to direct the receiver, to sell, assign, mortgage or otherwise
18 dispose of, any assets of whatever kind or character belonging
19 to the authority.
20 Section 9. Governing Body.--(a) The powers of the authority
21 shall be exercised by a governing body consisting of the members
22 of the authority acting as a board. Within 90 days after this
23 act shall become effective, the board shall meet and organize.
24 The Secretary of Transportation and his successor in office
25 shall be the chairman and chief executive officer and the board
26 shall elect a secretary and treasurer from their number. At the
27 first meeting in each year thereafter, they shall elect from
28 their number a secretary and treasurer.
29 (b) Seven members shall constitute a quorum of the board for
30 the purpose of organizing the authority and conducting the
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1 business thereof at meetings and for all other purposes and all
2 action at meetings shall only be taken by vote of a majority of
3 the members of the authority, unless in any case the bylaws
4 shall require a larger number.
5 (c) The board may take any action by the written consent of
6 at least ten members of the board after notice to all and the
7 failure of any member to request that the action be taken only
8 at a meeting: Provided, That public announcement is made of the
9 proposed action, and of the request for consents, before such
10 written consents are signed.
11 (d) The board shall have full authority to manage the
12 properties, projects and business of the authority and to
13 prescribe, amend and repeal bylaws, rules and regulations
14 governing the manner in which the business of the authority may
15 be conducted and the powers granted to it may be exercised and
16 embodied. The board may employ an executive director and shall
17 fix and determine the number of other officers, agents and
18 employees of the authority and their respective compensation and
19 duties and may delegate to one or more of their number as a
20 committee or otherwise or to one or more of said officers,
21 agents or employees, such powers and duties as it may deem
22 proper.
23 Section 10. Moneys of the Authority.--(a) All moneys of the
24 authority, from whatever source derived, shall be paid to the
25 treasurer of the authority. Said moneys shall be deposited in
26 the first instance in one or more banks or banks and trust
27 companies in one or more special demand or time accounts or
28 pursuant to one or more certificates of deposit and each of such
29 special accounts or certificates of deposit shall, to the extent
30 not covered by Federal deposit insurance, be continuously
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1 secured by a pledge of direct obligations of the United States
2 of America, of the Commonwealth, of a state of the United
3 States, of The General State Authority, of the State Highway and
4 Bridge Authority, or of a county of the Commonwealth, having an
5 aggregate market value, exclusive of accrued interest, at all
6 times, at least equal to the balance on deposit in such account
7 or held pursuant to such certificate. Such securities shall
8 either be deposited with the treasurer of the authority or be
9 held by a trustee or agent satisfactory to the authority. All
10 banks and banks and trust companies are hereby authorized to
11 give such security for such deposits. The moneys in said
12 accounts shall be paid out on the check, warrant or other order
13 of the treasurer of the authority or such other person or
14 persons as the authority may authorize to execute such checks,
15 warrants or orders.
16 (b) Moneys of the authority may be invested, pending the
17 expenditure thereof, in any medium of investment in which the
18 State Treasurer is, at the time of such investment, authorized
19 to invest moneys of the Commonwealth.
20 (c) The Department of Revenue of the Commonwealth or its
21 legally authorized representatives are hereby authorized and
22 empowered from time to time to examine the accounts and books of
23 the authority, including its receipts, disbursements, contracts,
24 leases, sinking funds, investments and any other matters
25 relating to its finances, operation and affairs.
26 Section 11. Leases Between Authority and State Agencies.--
27 (a) Any State agency shall each have power and authority, with
28 the approval of the Governor, to enter into contracts to lease
29 and to lease, as lessee, projects undertaken by the authority,
30 at such rental or rentals, payable out of the current
19750H0005B0005 - 18 -
1 appropriations to such State agency for the purpose, as may be
2 determined by the authority and agreed to by the State agency
3 involved. Such leases may commence at any stage of construction
4 or acquisition, and shall be for a term not exceeding 30 years
5 or the estimated useful life of the project, whichever shall be
6 the shorter. For the purposes of this act the useful life of all
7 rights-of-way, track, roadbeds, tunnels, electrification
8 systems, structures, buildings, stations, and the like shall be
9 taken as 30 years or longer; the useful life of rolling stock as
10 15 years; the useful life of passenger buses as 12 years; and of
11 the useful life of signal and communications systems as 10
12 years.
13 (b) Any State agency shall each have the power and
14 authority, so long as they shall not be in default under the
15 relevant lease to the authority, to sublease any or all projects
16 leased by such State agency from the authority, in consideration
17 of the added public service to be made available by the use of
18 the project, or such other appropriate consideration as may be
19 agreed, to any local transportation organization, or to any
20 transportation company. In view of the particular sensitivity of
21 a local transportation organization to local needs of
22 substantial metropolitan areas, no State agency shall sublease
23 projects for use exclusively or principally in the service area
24 of a local transportation organization in which a city or county
25 of the first or second class has membership, except in
26 accordance with a system of priorities agreed upon by the local
27 transportation organization and such State agency. In the case
28 of such a project subleased for use exclusively or principally
29 within such local service area, no sublease shall be made except
30 in accordance with agreements between the local transportation
19750H0005B0005 - 19 -
1 organization and such State agency with respect to such use. In
2 the case of such a project not falling within the scope of the
3 preceding sentence subleased for use both within and without the
4 service area of such a local transportation organization, no
5 sublease shall be made unless it provides routes, schedules and
6 fares applicable wholly within such service area, which have
7 been mutually agreed to by such local transportation
8 organization and such State agency. All such subleases shall be
9 made expressly subject in all respects to the lease from the
10 authority to the State agency, including the right of the
11 authority to re-enter and take possession upon default of
12 payments of rent by the State agency as the case may be.
13 (c) Any State agency shall each have power and authority to
14 lease, as lessee any property from the authority where such
15 property is required for the use and occupancy of any project
16 previously leased by such State agency, and was not included in
17 such lease, and to sublease the same as hereinabove provided.
18 Section 12. Contracts, Procurement and Sale of Property;
19 Competition in Award of Contracts.--(a) The authority shall have
20 power and authority to enter into contracts and to make joint
21 contracts of purchase with any local transportation organization
22 in any manner complying with the law applicable to such local
23 transportation organization. The authority shall also have power
24 and authority to make contracts for the improvement of any
25 rights-of-way, roadbeds or rolling stock, or electrification
26 systems, or other transportation systems, or parts thereof,
27 constituting a project without advertisement for competitive
28 bids, where such work is to be done at cost by the personnel and
29 with the facilities of the local transportation organization or
30 of the transportation company on whose system such property is
19750H0005B0005 - 20 -
1 to be used.
2 (b) Except in the purchase of projects from a local
3 transportation organization, or in the purchase of unique
4 articles, or articles which, for any other reason, cannot be
5 obtained in the open market, and except as herein specifically
6 provided, competitive bids shall be secured before any purchase
7 or sale, by contract or otherwise, is made or before any
8 contract is awarded for construction, alterations, supplies,
9 equipment, repairs or maintenance or for rendering any services
10 to the authority other than professional services; and the
11 purchase shall be made from or the contract shall be awarded to
12 the lowest responsible bidder; or a sale to the highest
13 responsible bidder. No purchase of any unique article or other
14 articles which cannot be obtained in the open market shall be
15 made without express approval of the board where the amount
16 involved is in excess of $1,500.
17 (c) Except as herein specifically provided otherwise, all
18 purchases and sales in excess of $1,500 shall be awarded after
19 advertising in a newspaper of general circulation in the area
20 where the property is to be used not less than 2 weeks prior to
21 the bid opening. Bids shall be publicly opened and read aloud at
22 a date, time and place designated in the invitation to bid. In
23 all cases of purchases or sales in excess of $1,500 authorized
24 hereunder to be made without competitive bidding except
25 purchases from or sales to a local transportation organization
26 or contracts with a transportation company pursuant to
27 subsection (a) of this section, invitations to bid shall be sent
28 not less than 1 week prior to the bid opening to at least three
29 potential bidders who are qualified technically and financially
30 to submit bids, or in lieu thereof a memorandum shall be kept on
19750H0005B0005 - 21 -
1 file showing that less than three potential bidders so qualified
2 exist in the market area within which it is practicable to
3 obtain bids.
4 (d) Purchases or sales under $1,500 may be negotiated with
5 or without competitive bidding under sound procurement
6 procedures as promulgated and established by the board.
7 (e) Competitive bidding requirements may be waived if it is
8 determined in such other manner as the board may, by regulation,
9 provide, that an emergency directly and immediately affecting
10 customer service, or public health, safety or welfare requires
11 immediately delivery of supplies, materials, or equipment:
12 Provided, however, That a record of circumstances explaining the
13 emergency shall be submitted to the board at its next regular
14 meeting and thereafter kept on file.
15 (f) Contracts for the sale or lease of property owned by the
16 authority shall be awarded after competitive bidding as shown in
17 subsection (c) of this section, except where a contract is
18 entered into with the Commonwealth or any political subdivision
19 or agency or instrumentality thereof, local transportation
20 organization or Federal agency.
21 (g) Requirements shall not be split into parts for the
22 purpose of avoiding the provisions of this section.
23 (h) The authority shall have the right to reject any or all
24 bids or parts of any or all bids, whenever, in the opinion of
25 the board, such rejection is necessary for the protection of the
26 interest of the authority. In every such case, a record shall be
27 made, setting forth the reason for such rejection which record
28 shall thereafter be kept on file.
29 (i) The board shall adopt rules and regulations to
30 effectuate the provisions of this section.
19750H0005B0005 - 22 -
1 (j) The authority shall have the power to accept the
2 assignment from any local transportation organization of all or
3 any interest in any lawfully made contract for the procurement
4 and purchase of any asset deemed necessary or desirable by the
5 authority in connection with any project.
6 Section 13. Power to Acquire Property.--(a) The authority
7 shall have the power to acquire by purchase, lease, eminent
8 domain proceedings, gift or otherwise all or any property
9 necessary for the promoting of its corporate purposes, including
10 any abandoned railroad track or property and any property of a
11 public utility, except that no line, route, franchise,
12 certificate of public convenience, or certificate of
13 authorization of a transportation company, or interest in any
14 thereof shall be acquired without the consent of such company or
15 pursuant to an order of court. All political subdivisions and
16 corporations are hereby authorized to donate property to the
17 authority.
18 (b) Eminent domain proceedings shall be in accordance with
19 the act of June 22, 1964 (P.L.84, No.6), known as the "Eminent
20 Domain Code" and the authority, is empowered to join with any
21 local transportation organization in obtaining any property
22 through such eminent domain proceedings.
23 Section 14. Use of Projects.--The use of the projects of the
24 authority by its lessees shall be subject to the rules and
25 regulations from time to time adopted by the authority, which
26 shall include the observance of the relevant safety standards of
27 any regulatory body having jurisdiction to promulgate such
28 standards, and all leases shall so provide; but the authority
29 shall not be authorized hereby to do anything or suffer or
30 permit any action which will impair the security of the holders
19750H0005B0005 - 23 -
1 of the obligations of the authority or violate any agreements
2 with them or for their benefit or any agreement with a local
3 transportation organization or any Federal agency, or impair,
4 suspend, contract, enlarge or extend, or affect in any manner
5 the powers of the Pennsylvania Public Utility Commission or of
6 the Interstate Commerce Commission, which by law are applicable
7 to the transportation organization company involved.
8 Section 15. Pledge Against Limitation of Powers of
9 Authority.--The Commonwealth does hereby pledge to and agree
10 with any person or Federal agency subscribing to or acquiring
11 the bonds to be issued by the authority for the construction of
12 any project or part thereof, that the Commonwealth will not
13 limit or alter adversely the rights hereby vested in the
14 authority until all bonds at any time issued, together with the
15 interest thereon, are fully met and discharged. The Commonwealth
16 does further pledge to and agree with any Federal agency that if
17 such Federal agency shall construct or contribute any funds for
18 the construction of any project or any portion thereof, the
19 Commonwealth will not alter or limit the rights and powers of
20 the authority in any manner which would be inconsistent with the
21 continued maintenance and operation of the project or the
22 improvement thereof, or which would be inconsistent with the due
23 performance of any agreements between the authority and such
24 Federal agency, and the authority shall continue to have and may
25 exercise all powers herein granted, so long as the same shall be
26 necessary or desirable for the carrying out of the purposes of
27 this act and the purposes of the United States in the
28 construction of any project or such portion thereof.
29 Section 16. Exemption from Taxation.--The effectuation of
30 the authorized purposes of the authority created under this act
19750H0005B0005 - 24 -
1 shall and will be in all respects for the benefit of the people
2 of the Commonwealth, for the increase of their commerce and
3 prosperity, and for the improvement of their health and living
4 conditions, and, since the authority will be performing
5 essential governmental functions in effectuating such purposes,
6 the authority shall not be required to pay any taxes upon any
7 property acquired or used by it for such purposes and the bonds
8 issued by the authority, their transfer and the income therefrom
9 (including any profits made on the sale thereof), shall at all
10 times be free from taxation, other than inheritance and estate
11 taxation, within the Commonwealth of Pennsylvania.
12 Section 17. Constitutional Construction.--The provisions of
13 this act shall be severable, and if any of the provisions
14 thereof shall be held unconstitutional, such decisions shall not
15 affect the validity of any of the remaining provisions of this
16 act. It is hereby declared as the legislative intent that this
17 act would have been adopted had such unconstitutional provision
18 not been included herein.
19 Section 18. Capital Facilities Debt Enabling Act.--In the
20 event any provision of this act is inconsistent with or supplied
21 by the act of July 20, 1968 (P.L.550, No.217), known as the
22 "Capital Facilities Debt Enabling Act," or in the event that the
23 provisions of that act are applicable, the provisions of this
24 act shall be inapplicable to the extent and for the period of
25 time necessary to remove any conflict between the provisions of
26 both acts.
27 Section 19. Appropriation.--The sum of $1,000,000 is hereby
28 appropriated to the authority to carry out the provisions of
29 this act.
30 Section 20. Effective Date.--This act shall take effect
19750H0005B0005 - 25 -
1 immediately.
A6L6JLW/19750H0005B0005 - 26 -