PRINTER'S NO. 2118
No. 1682 Session of 1975
INTRODUCED BY IRVIS, MANDERINO, BRUNNER, LAUDADIO, ENGLEHART,
SCHMITT, ROMANELLI, McCUE, TADDONIO, TRELLO, GEISLER,
M. M. MULLEN, MRKONIC, MILANOVICH, GREEN, BONETTO, CAPUTO,
ITKIN, MISCEVICH, NOVAK, RHODES, FLAHERTY, MENHORN,
VALICENTI, GILLETTE, COWELL AND WALSH, JULY 24, 1975
REFERRED TO COMMITTEE ON RULES, JULY 24, 1975
AN ACT
1 To increase the commerce and prosperity of the people of the
2 Commonwealth, to improve their health and living conditions,
3 and to alleviate the problems created by traffic congestion
4 and the lack of adequate mass and rapid transportation
5 facilities, by authorizing the creation of a transportation
6 authority to function in each metropolitan area consisting of
7 any county of the second class and all nearby counties within
8 a radius of 20 miles of any such second class county, as a
9 body corporate and politic for the purpose of establishing an
10 integrated mass and rapid transportation system with all
11 pertinent powers including, but not limited to, leasing,
12 acquiring, owning, operating and maintaining a system for, or
13 otherwise providing for, the transportation of persons,
14 authorizing the borrowing of money and issuance of bonds
15 therefor, conferring the right of eminent domain on the
16 authority, altering the jurisdiction of the Public Utility
17 Commission, authorizing the acceptance of grants from
18 Federal, State and local governments, limiting actions
19 against the authority and exempting it from taxation,
20 authorizing counties and municipalities to enter into
21 compacts for the financing of each authority and to make
22 appropriations in accordance with such compacts, conferring
23 exclusive jurisdiction upon certain courts with respect to
24 matters relating to such authority, and empowering each
25 authority to function outside of the metropolitan area under
26 certain terms and conditions.
27 The General Assembly of the Commonwealth of Pennsylvania
28 hereby enacts as follows:
1 Section 1. Short Title.--
2 This act shall be known and may be cited as the "Metropolitan
3 Rapid Transportation Authority Act."
4 Section 2. Legislative Finding; Declaration of Policy.--
5 It is hereby determined and declared as a matter of
6 legislative finding:
7 (1) That rapidly depleting oil reserves and a virtually
8 unpredictable pricing policy of middle eastern oil suppliers
9 necessitate a shift in emphasis from the Commonwealth's reliance
10 on a transportation system based upon the automobile to a rapid
11 transportation system.
12 (2) That there exists in the urban and suburban communities
13 in metropolitan areas, traffic congestion and serious mass
14 transportation problems because of underdeveloped, uncoordinated
15 obsolete mass transportation facilities resulting in inadequate
16 or overcrowded high cost conditions on our highways and existing
17 mass transportation facilities.
18 (3) That such conditions or a combination of some or all of
19 them have made and will continue to result in making such
20 communities economic and social liabilities, harmful to the
21 social and economic well-being of the entire area, depreciating
22 values therein, reducing the tax revenues, making the
23 metropolitan areas and their constituent communities less
24 desirable areas in which to live and work and thereby
25 depreciating further the general community-wide values.
26 (4) That the foregoing conditions cannot be effectively
27 dealt with by private enterprise under existing law without the
28 additional aids herein granted and are beyond remedy or control
29 by governmental regulatory processes.
30 (5) That the sound replanning and redevelopment of
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1 metropolitan mass transportation facilities in accordance with
2 sound and approved plans for their promotion, development and
3 growth will promote the public health, safety, convenience and
4 welfare and that the public acquisition of existing mass
5 transportation facilities in accordance with the said sound
6 plans for their redevelopment and promotion will promote the
7 public health, safety, convenience and welfare.
8 (6) That the well-being and economic health of the counties
9 and other communities in the metropolitan areas require
10 integrated systems of mass passenger transportation.
11 (7) That it is desirable that the public transportation
12 systems in the metropolitan areas be combined, improved,
13 extended and supplemented by the creation of authorities as
14 herein provided.
15 (8) That the establishment of metropolitan transportation
16 authorities will promote the public safety, convenience and
17 welfare.
18 (9) That it is intended that such authorities cooperate with
19 and/or acquire existing transportation facilities that private
20 enterprise and government may mutually provide adequate transit
21 facilities for the convenience of the public.
22 (10) That it is intended that any authority created
23 hereunder will cooperate with all municipalities and other
24 public bodies in whose territories it operates so that the mass
25 passenger transportation system may best serve the interests of
26 the residents thereof.
27 Therefore, it is hereby declared to be the policy of the
28 Commonwealth of Pennsylvania to promote the safety and welfare
29 of the inhabitants thereof by authorizing the creation of a body
30 corporate and politic for each metropolitan area, to be known as
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1 the Rapid Transportation Authority of such area, which shall
2 exist and operate for the purposes contained in this act. Such
3 purposes are hereby declared to be public uses for which public
4 money may be spent and private property may be acquired by the
5 exercise of the power of eminent domain.
6 Section 3. Definitions.--
7 The following terms when used or referred to in this act
8 shall have the following meanings, except in those instances
9 where the context clearly indicates otherwise:
10 "Authority." Any body corporate and politic created pursuant
11 to this act.
12 "Board." The governing and administrative body of an
13 authority.
14 "Federal agency." The United States of America, the
15 President of the United States and any department or
16 corporation, agency or instrumentality, heretofore or hereafter
17 created, designated or established by the United States of
18 America.
19 "Legislative body." In counties, the Board of County
20 Commissioners; and, in the other municipalities, that body
21 authorized by law to enact ordinances.
22 "Metropolitan area." All of the territory within the
23 boundaries of any county of the second class and all other
24 counties located in whole or in part within 20 miles of such
25 second class county.
26 "Project." Any structure, facility or undertaking which an
27 authority is authorized to acquire, construct, improve, lease,
28 maintain, operate, contract for, or otherwise function with
29 respect to, under the provisions of this act.
30 "Transit vehicle." Every vehicle which is self-propelled or
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1 which is propelled by electric power.
2 "Transportation system." All property, real and personal,
3 useful for the transportation of passengers for hire, including
4 but not limited to power plants, substations, terminals,
5 garages, bridges, tunnels, subways, elevated lines, monorails,
6 railroad motive power, trains, railroad passenger cars, and
7 equipment, belt conveyors, inclines, car barns, street cars,
8 buses, rails, lines, poles, wires, stations, off-street parking
9 facilities rights-of-way, as well as the franchises, rights and
10 licenses therefor, including rights to provide group and party
11 services: Provided, That such term shall not include taxicabs.
12 Section 4. Creation of Transportation Authorities; Rights
13 and Powers.--
14 (a) There is hereby authorized the creation of a separate
15 body corporate and politic in each metropolitan area, to be
16 known as the transportation authority of such area, extending to
17 and including all of the territory in the metropolitan area. An
18 authority shall in no way be deemed to be an instrumentality of
19 any municipality or engaged in the performance of a municipal
20 function, but shall exercise the public powers of the
21 Commonwealth as an agency and instrumentality thereof. An
22 authority shall exist for the purpose of planning, acquiring,
23 holding, constructing, improving, maintaining, operating,
24 leasing, either as lessor or lessee, and otherwise functioning
25 with respect to, a transportation system in the metropolitan
26 area, and, outside of such area to the extent necessary for the
27 operation of an integrated system and for the provision of all
28 group and party services which can be provided by transportation
29 systems subject to acquisition under this act. All services
30 rendered by the authority outside the metropolitan area shall be
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1 pursuant to certificates of public convenience or other
2 appropriate authorization issued to it by the Pennsylvania
3 Public Utility Commission, or other appropriate regulatory
4 agency of any state or Federal Government. An authority shall
5 transact no business or otherwise become operative until and
6 unless a majority of its board shall have been qualified in
7 accordance with this act.
8 (b) The certification by the appointing power of each board
9 member, and the constitutional oath of office subscribed by each
10 member, shall be filed with the Department of State and upon the
11 receipt of initial certifications and respective oaths of a
12 majority of the total number of board members appropriate to any
13 metropolitan area, the Secretary of the Commonwealth shall issue
14 a certificate of incorporation. Such certificate shall refer to
15 the authority by the name which shall be designated by such
16 board members.
17 (c) In any suit, action or proceeding involving or relating
18 to the validity or enforcement of any contract or act of an
19 authority, a copy of the certificate of incorporation, duly
20 certified by the Department of State, shall be admissible in
21 evidence, and shall be conclusive proof of the legal
22 establishment of the authority.
23 (d) A duly certified authority shall have and may exercise
24 all powers necessary or convenient for the carrying out of the
25 aforesaid purposes, including but without limiting the
26 generality of the foregoing, the following rights or powers:
27 (1) To have perpetual existence.
28 (2) To sue and be sued, implead and be impleaded, complain
29 and defend in all courts, to petition the Interstate Commerce
30 Commission or other regulatory body, or join in any proceeding
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1 before any such bodies or courts in any matter affecting the
2 operation of any project of the authority.
3 (3) To adopt and use and alter at will a corporate seal.
4 (4) To establish a principal office within a county of the
5 second class and such other office or offices as may be
6 necessary for the carrying on of its duties.
7 (5) To acquire, purchase, hold, lease as lessee and use any
8 franchise, property, real, personal or mixed, tangible or
9 intangible, or any interest therein necessary, or desirable for
10 carrying out the purposes of the authority, and to sell, lease
11 as lessor, transfer and dispose of any property, or interest
12 therein, at any time acquired by it. In exercising any of the
13 powers granted by this paragraph, the authority shall consider,
14 inter alia, the same value factors as provided in section 8 in
15 determining compensation under the exercise of eminent domain.
16 (6) To acquire by purchase, lease, or otherwise, and to
17 construct, improve, maintain, repair and operate passenger
18 transportation facilities.
19 (7) To make and from time to time to amend and repeal
20 bylaws, rules, regulations and resolutions.
21 (8) To appoint officers, agents, employees and servants, to
22 prescribe their duties and fix their compensation, subject,
23 however, to specific provisions of this act.
24 (9) To fix, alter, charge and collect fares, rates, rentals
25 and other charges for its facilities by zones or otherwise at
26 reasonable rates to be determined exclusively by it, subject to
27 appeal, as hereinafter provided, for the purpose of providing
28 for the payment of all expenses and obligations of the
29 authority, including the acquisition, construction, improvement,
30 repair, maintenance and operation of its facilities and
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1 properties, the payment of the principal and interest on its
2 obligations, and to comply fully with the terms and provisions
3 of any agreements made with the purchasers or holders of any
4 such obligations. The authority shall determine by itself
5 exclusively, after appropriate public hearing, the facilities to
6 be operated by it, the services to be available to the public,
7 and the rates to be charged therefor. Any person aggrieved by
8 any rate or service or change of service fixed by the authority
9 may bring an appeal against the authority in the court of common
10 pleas of any county in the metropolitan area in which the
11 charge, service or change of service shall be applicable, for
12 the purpose of protesting against any such charge, service or
13 change of service. The grounds for such suits shall be
14 restricted to a manifest and flagrant abuse of discretion or an
15 error of law; otherwise, all such actions by the authority shall
16 be final. Whenever two or more appeals shall be brought against
17 the same action of the authority, exclusive jurisdiction for the
18 determination thereof shall be vested in the first such court to
19 receive such an appeal, and all other courts receiving
20 subsequent appeals against the same action shall transfer such
21 appeals to the said first court. Upon the finding of an error of
22 law or a manifest and flagrant abuse of discretion, the court
23 shall issue an order setting forth the abuse or error and
24 returning the matter to the authority for such further action as
25 shall be not inconsistent with the findings of the court. No
26 appeal from the action of the authority or from the decision of
27 the court of common pleas shall act as a supersedeas, except
28 when taken by the authority or any municipality, or, in other
29 cases, when specially granted after a finding that irreparable
30 and extraordinary harm will result. The courts shall give
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1 priority to all such appeals and no bond shall be required of
2 any party instituting such an appeal under the provisions of
3 this section.
4 The authority shall fix such rates, fares and charges in such
5 manner that they shall be at all times sufficient in the
6 aggregate, and in conjunction with any grants from Federal or
7 other sources, and any other income available to the authority,
8 to provide funds (i) for the payment of all operating costs and
9 expenses which shall be incurred by the authority, and (ii) for
10 the payment of the interest on and principal of all bonds,
11 certificates and other obligations payable from said revenues
12 and to meet all other charges upon such revenues as provided by
13 any trust agreement executed by the authority in connection with
14 the issuance of bonds or certificates under this act.
15 The board may enter into agreements with the United States
16 Post Office Department for the transportation of mail and
17 payment of compensation to the authority in lieu of fares for
18 the transportation of letter carriers in uniform at all times.
19 The board may make similar agreements within any municipality,
20 in and by which they are employed, for the transportation of
21 firemen and public health nurses when in uniform, and of
22 policemen when in uniform or when not in uniform, upon
23 presentation of identification as policemen. The board may also
24 provide free transportation for employees of the authority when
25 in uniform or upon presentation of identification as such
26 employees.
27 (10) To borrow money from private lenders, or from the
28 Commonwealth or Federal Government, or from any municipality in
29 the metropolitan area, in such amounts as may be necessary or
30 desirable for the operation and work of the authority; to make
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1 and issue negotiable notes, bonds, refunding bonds and other
2 evidences of indebtedness or obligations of the authority in
3 connection with any such borrowing or refunding or in payment in
4 whole or in part of all or any part of any transportation
5 system, or any bonds, shares or other securities of any
6 corporation owning or operating any such system, or any
7 franchises, property, equipment or interests acquired or to be
8 acquired by the authority, and to secure the payment of such
9 bonds, or any part thereof, by pledge or deed of trust of all or
10 any of its revenues, rentals, and receipts, and to make such
11 agreements with the purchasers or holders of such bonds or with
12 others in connection with any such bonds, whether issued or to
13 be issued as the authority shall deem advisable and in general,
14 to provide for the security for said bonds and the rights of the
15 holders thereof.
16 (11) To apply for and to accept grants, loans and other
17 assistance from, and to enter into contracts, leases or other
18 transactions with, the Federal Government or any agency or
19 instrumentality thereof, the Commonwealth, any municipality or
20 corporation, or any person whatsoever, for any of the purposes
21 of the authority, and to enter into any agreement with the
22 Federal Government in relation to such grants, loans, or other
23 assistance. Such agreement shall not conflict with any of the
24 provisions of any trust agreement securing the payment of bonds
25 or certificates of the authority.
26 (12) To make and execute all contracts and other instruments
27 necessary or convenient to the exercise of the powers of the
28 authority. Any contract or instrument when signed by the
29 chairman or vice chairman and secretary or assistant secretary
30 or treasurer or assistant treasurer of the authority shall be
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1 held to have been properly executed for and on its behalf.
2 Without limiting the generality of the foregoing, the authority
3 is also authorized to enter into contracts for the purchase,
4 lease, operation or management of transportation facilities
5 within or without the metropolitan area or within or without the
6 Commonwealth. When such facilities are located outside the
7 metropolitan area, they shall be subject to the jurisdiction of
8 the appropriate regulatory agencies.
9 (13) To acquire by eminent domain any real or personal
10 property including improvements, fixtures and franchises of any
11 kind whatever for the public purposes set forth in this act in
12 the manner hereinafter provided.
13 (14) To pledge, hypothecate, or otherwise encumber, all or
14 any of the revenues or receipts of the authority as security for
15 all or any of the obligations of the authority.
16 (15) To do all acts and things necessary for the promotion
17 of its business, and the general welfare of the authority to
18 carry out the powers granted to it by this act or any other
19 acts.
20 (16) To enter into contracts with the Commonwealth, its
21 agencies and instrumentalities, municipalities or corporations,
22 on such terms as the authority shall deem proper for the use of
23 any facility of the authority, and fixing the amount to be paid
24 therefor.
25 (17) To enter into contracts of group insurance for the
26 benefit of its employees, or to continue any existing insurance
27 and/or pension or retirement system and/or any other employee
28 benefit arrangement covering employees of an acquired existing
29 transportation system, and/or to set up a retirement or pension
30 fund or any other employee benefit arrangement for such
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1 employees.
2 (18) The authority shall have no power, at any time or in
3 any manner, to pledge the credit or taxing power of the
4 Commonwealth, or any political subdivision, nor shall any of its
5 obligations be deemed to be obligations of the Commonwealth or
6 of any of its political subdivisions, nor shall the Commonwealth
7 or any political subdivision thereof be liable for the payment
8 of principal or interest on such obligations.
9 (19) Private rights and property in the beds of existing
10 public highways vacated in order to facilitate the purposes of
11 the authority shall not be deemed destroyed or ousted by reason
12 of such vacation, but shall be acquired or relocated by the
13 authority in the same manner as other property.
14 (20) To have the right to use any public road, street, way,
15 highway, bridge or tunnel for the operation of a transportation
16 system within the metropolitan area. In all cases involving the
17 facilities of a railroad, any operations of which extend beyond
18 the metropolitan area, the exercise of this right by the
19 authority shall be subject to the jurisdiction of the Public
20 Utility Commission under sections 409, 410 and 411 of the Public
21 Utility Law.
22 (21) To lease property or contract for service, including
23 managerial and operating service, whenever it can more
24 efficiently and effectively serve the public by so doing, rather
25 than conducting its own operations with its own property.
26 (22) To self-insure or otherwise provide for the insurance
27 of any property or operations of the authority against any risks
28 or hazards.
29 (23) To act as agent of the Commonwealth, or of the Federal
30 Government or any of its instrumentalities or agencies, for the
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1 public purpose set out in this act.
2 (24) To conduct examinations and investigations and to hear
3 testimony and take proof, under oath or affirmation at public or
4 private hearings, as hereinafter provided, on any matter
5 material to the public purposes set forth in this act.
6 (25) To make available to the government of a municipality
7 or any appropriate agency, board or commission thereof, the
8 recommendations of the authority affecting any area in the
9 authority's field of operation or property therein, which it may
10 deem likely to promote the public health, morals, safety and
11 welfare.
12 (26) To form plans for the improvement of mass
13 transportation in order to promote the economic development of
14 the metropolitan area in which the transportation authority
15 operates; to make recommendations concerning mass transportation
16 facilities which the authority does not own or operate; to make
17 recommendations concerning throughways and arterial highway
18 connections to the Department of Transportation and to other
19 appropriate governmental bodies; and otherwise to cooperate with
20 all such governmental bodies. The authority shall give advance
21 notice to the Department of Transportation of any plans which it
22 may have for the occupation or use of any part of any State
23 highway.
24 (27) The authority shall not have power to levy taxes for
25 any purpose whatsoever.
26 (28) It shall be the duty of the board, as promptly as
27 possible, to rehabilitate, reconstruct, and extend as possible,
28 all portions of any transportation system acquired by the
29 authority and to maintain at all times a fast, reliable and
30 economical transportation system suitable and adapted to the
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1 needs of the municipalities served by the authority and for
2 safe, comfortable and convenient service. To that end, the board
3 shall make every effort to utilize high speed rights-of-way,
4 private or otherwise, to the maximum extent practicable to avoid
5 air pollution by its vehicles; to abandon no physical property
6 which has useful and economical capabilities, and to extend its
7 rail and highway services into areas which have sufficient need
8 for them to economically or strategically justify such
9 extension.
10 (29) To agree with the constituent municipalities in which
11 it operates for the lease of present and future municipal
12 property, where such a lease would be advantageous to the
13 authority in the financing or the operation of improved
14 passenger transportation service.
15 Section 5. Power to Acquire Property, Franchises, Etc.--
16 (a) The authority shall have power to acquire by purchase,
17 condemnation, lease, gift, or otherwise, all or any part of the
18 property of any public utility operating a transportation system
19 within the metropolitan area, including but not limited to, the
20 plant, equipment, property rights in property reserve funds,
21 employees' pension or retirement funds, special funds,
22 franchises, licenses, patents, permits, operating rights, and
23 paper documents and records, which said property shall be
24 located within the metropolitan area and shall be appropriate
25 for the purposes for which the authority is established, as well
26 as all or any part of the right-of-way, equipment, fixed
27 facilities, and other property of any kind of any such utility,
28 extending beyond the boundaries of the metropolitan area and
29 forming, or capable of forming, part of an integrated suburban
30 rapid transit or rail transportation facility, connecting with
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1 rapid transit or electric railway lines of the authority in
2 super highways or elsewhere. No interest in the right-of-way of
3 a railroad company the operations of which extend beyond the
4 metropolitan area shall be acquired or occupied under the power
5 of eminent domain without the consent of said railroad. Such
6 properties, upon acquisition by or lease to the authority, shall
7 become and be operated as part of the transportation system of
8 the authority, and the authority shall have all powers in
9 connection with such properties and such operations as are
10 conferred by this act. Except as provided in the next following
11 sentence, all condemnations authorized by this section shall be
12 pursuant to section 8 of this act. The provisions of section 407
13 of Article IV (except as provided in subsection (b) of this
14 section) and of Article VII of the act of June 22, 1964
15 (Sp.Sess., P.L.84, No.6), known as the "Eminent Domain Code,"
16 shall be the only provisions of said "Eminent Domain Code"
17 applicable to condemnations so authorized. The authority shall
18 also have the power to enter into agreements to operate any such
19 lines located or extending beyond the boundaries of the
20 metropolitan area, such agreements to be subject to all other
21 provisions of this act. The authority shall have power to lease
22 or purchase any municipally-owned local transportation subways
23 or other municipally-owned local transportation facilities for
24 operation and maintenance by the authority.
25 (b) Whenever the authority shall condemn all or
26 substantially all of the property of a transportation system, it
27 may elect to commence condemnation proceedings without immediate
28 passage of title by inserting a provision to that effect in the
29 declaration of taking. In that event, the provisions of section
30 407 of the "Eminent Domain Code" shall not apply, and the title
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1 shall not pass to the authority and the authority shall not be
2 entitled to possession until payment to the condemnee or into
3 court of the amount of the just compensation payable for the
4 property taken (determined as of the date of filing of the
5 declaration of taking), as finally determined in accordance with
6 the provisions of this act: Provided, That such payment occurs
7 within one year of such final determination: And provided
8 further, That from and after the filing of the declaration of
9 taking until the payment to the condemnee of just compensation
10 for the condemned property, the authority shall have the right
11 to petition the court having jurisdiction of the proceedings to
12 prevent waste, substantial disposition or any transaction with
13 respect to the condemned property other than in the ordinary
14 course of business without obtaining the prior written consent
15 of the authority. The condemnee shall have no right to tender
16 possession of the property or otherwise to demand payment of any
17 compensation prior to such passage of title.
18 Section 6. Power to Buy, Lease or Sell Property.--
19 The authority shall have power to acquire by purchase,
20 condemnation, lease, gift or otherwise, any property and rights
21 useful for its purposes and to sell, lease, transfer or convey
22 any property or rights when no longer useful or exchange the
23 same for other property or rights which are useful for its
24 purposes.
25 Section 7. Power to Contract with Public Utilities.--
26 The authority shall have power to enter into agreements with
27 any public utility operating a railroad or any other
28 transportation facility, either within or without the
29 metropolitan area for the joint use of any property of the
30 authority or public utility or the establishment of through
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1 routes, joint fares and transfer of passengers.
2 Section 8. Removal or Relocation of Utility Structures;
3 Power of Eminent Domain.--
4 (a) The authority shall have power, subject to relevant
5 provisions of section 4(d)(20) to require persons owning or
6 operating public utility structures and appliances in, upon,
7 under, over, across or along the public roads, streets, or other
8 public ways in which the authority has the right to own,
9 construct, operate or maintain transportation facilities to
10 remove such public utility structures and appliances from their
11 locations. If any person owning or operating public utility
12 structures and appliances fails or refuses so to remove or
13 relocate them, the authority may remove or relocate them; the
14 authority shall provide the new location which the structures or
15 appliances as relocated shall occupy and to that end the
16 authority is hereby authorized to acquire by purchase or by the
17 exercise of the power of eminent domain any necessary land or
18 right-of-way for such purpose, if the new location shall not be
19 in, on or above a highway, road or street. The exact new
20 location shall be chosen by agreement of the authority and the
21 utility. Upon the completion of such relocation, the authority
22 shall reimburse the public utility for the cost of relocation
23 which shall be the entire amount paid by the utility properly
24 attributable to the relocation of the structure or appliance
25 after deducting the cost of any increase in the service capacity
26 of the new structure or appliance and any salvage value derived
27 from the old structure or appliance. If an issue shall arise
28 between the authority and the public utility as to the amount of
29 the cost of relocation or the new location either party may
30 institute a proceeding by complaint before the Pennsylvania
19750H1682B2118 - 17 -
1 Public Utility Commission which is hereby clothed with exclusive
2 jurisdiction to hear and determine such issue. Appeal from the
3 order of the commission in any such proceeding may be taken in
4 the same manner as is prescribed by the act of May 28, 1937
5 (P.L.1053, No.286), known as the "Public Utility Law," for
6 appeals from other orders of the commission.
7 (b) The authority shall have the right of eminent domain
8 which may be exercised, either within or without the
9 metropolitan area, to acquire private property and property
10 devoted to any public use which is necessary for the purposes of
11 the authority, except property of a public utility operating
12 transportation facilities extending beyond the boundaries of the
13 metropolitan area. The authority shall have the right of eminent
14 domain to acquire property of any railroad which property is not
15 used for or in connection with the transportation of persons or
16 property and to acquire rights and easements across, under or
17 over the right-of-way of such railroad whenever the authority
18 shall acquire the private right-of-way or other property of a
19 public utility used or useful in its service to the public. It
20 shall before requiring the removal of the existing structures
21 and appliances provide a new location for the said structures
22 and appliances, and upon the completion of relocation, reimburse
23 the public utility for the cost thereof in the manner provided
24 in section 8(a).
25 (c) Title to any property acquired by an authority through
26 eminent domain shall be an absolute ownership or fee simple
27 title unless a lesser title shall be designated specifically in
28 the eminent domain proceedings. Real and personal property of
29 any kind whatever belonging to a public utility corporation
30 providing transportation or transportation related services, may
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1 be acquired without the approval of the Public Utility
2 Commission. In all cases involving the facilities of a railroad,
3 any operations of which extend beyond the metropolitan area, the
4 exercise of the power of the authority under this subsection
5 shall be subject to the jurisdiction of that commission under
6 sections 409, 410 and 411 of the Public Utility Law.
7 (d) No property owned or used by the United States, the
8 Commonwealth, any political subdivision thereof, or any body
9 politic and corporate organized as an "authority" under any law
10 of the Commonwealth or by any agency of any of them, nor
11 property used for burial purposes or places of public worship,
12 shall be taken under the right of eminent domain without the
13 consent of the owner or user thereof.
14 (e) Before exercising the power of eminent domain,
15 reasonable efforts shall be made by the authority to achieve the
16 desired result through negotiation.
17 (f) The power to eminent domain conferred herein shall be
18 exercised by the authority, when authorized by resolution of the
19 board, in the following manner:
20 (1) Jurisdiction and Venue.
21 The court of common pleas shall have exclusive jurisdiction
22 of all eminent domain proceedings instituted by the authority.
23 Such proceedings shall be brought in the court of common pleas
24 of the county in which the property to be condemned is located,
25 or, if the property is located in two or more counties, then in
26 the court of common pleas in any one of the counties. In the
27 latter case where proceeding is commenced in the court of one
28 county, all subsequent proceedings regarding the same property
29 shall be brought in the same county.
30 (2) Condemnation of Title; Declaration of Taking.
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1 (i) Condemnation shall be effected by the filing in court of
2 a declaration of taking, with such security as may be required
3 by the court, and, thereupon, the title which the authority is
4 to acquire in the property condemned, shall pass to the
5 authority.
6 (ii) The declaration of taking shall be in writing and
7 executed by the persons authorized by the board to act for the
8 authority; shall be captioned as a proceeding in rem, and shall
9 contain the following:
10 (A) The name and address of the authority.
11 (B) A specific reference to this section of this act, under
12 which the condemnation is authorized.
13 (C) A specific reference to the resolution by which the
14 declaration of taking was authorized by the board, including the
15 date when such action was taken and the place where the record
16 thereof may be examined.
17 (D) A brief description of the purpose of the taking.
18 (E) A description or plan of the property taken sufficient
19 for the identification thereof, specifying the county and any
20 other municipality wherein the property taken is located.
21 (F) A statement of the nature of the title acquired.
22 (G) A statement specifying where a plan showing the
23 condemned property may be inspected in a county in which the
24 property taken or any part thereof is located.
25 (H) A statement of how just compensation has been made or
26 secured.
27 (3) Security Required; Bond.
28 The authority shall file with the declaration of taking its
29 bond without surety to the Commonwealth, for the use of the
30 owner or owners of the property, interests condemned, the
19750H1682B2118 - 20 -
1 condition of which shall be that the authority shall pay such
2 damages as shall be determined by law.
3 The court, upon preliminary objections of the condemnee, may
4 require the authority to give such additional security as the
5 court may deem proper.
6 (4) Recording Notice of Condemnation.
7 The authority, upon filing its declaration of taking, shall
8 on or before the first business day thereafter, lodge a record
9 of notice thereof in the office for the recording of deeds in
10 the county or counties in which the property is located. The
11 notice shall contain the court, term and number and the date of
12 filing of the declaration of taking, as well as a description of
13 the property taken, sufficient for the identification thereof
14 and the name or names of the owner or owners of the property
15 interests condemned, as reasonably known to the authority, and
16 shall be indexed in the deed indices showing the condemnee set
17 forth in the notice as grantor, and the authority as grantee.
18 The recorder shall receive as a fee the sum of $5 for recording
19 each notice and 25¢ for each name indexed.
20 (5) Notice to Condemnee.
21 Within 20 days after the filing of the declaration of taking,
22 the authority shall give written notice of the filing thereof to
23 the condemnee.
24 The notice shall be served within or without the
25 Commonwealth, by any competent adult, in the same manner as a
26 complaint or writ of summons in assumpsit, or by first class,
27 certified or registered mail, to the last known address of the
28 condemnee. If service cannot be made in the manner as provided,
29 then service shall be made by posting a copy of the notice upon
30 the most public part of the property and by publication one time
19750H1682B2118 - 21 -
1 each in one newspaper of general circulation and the legal
2 journal, if any, published in the county.
3 The notice to be given the condemnee shall include:
4 (i) A copy of the declaration of taking, including the date
5 of filing and the court, term and number thereof.
6 (ii) A statement that the condemnee's property has been
7 condemned and to the extent and for the purpose set forth in the
8 declaration of taking.
9 (iii) A statement that if the condemnee wishes to challenge
10 the power or the right of the authority to appropriate the
11 condemned property or the sufficiency of the security, or the
12 procedure followed by the authority or the declaration of
13 taking, he must file preliminary objections within 20 days after
14 service of said notice, where service was personal or by mail,
15 or within 30 days after service by publication and posting.
16 The authority shall file proof of service of said notice.
17 (6) Preliminary Objections.
18 Within 20 days after being served with notice of condemnation
19 where service was personal or by mail or within 30 days after
20 service by publication and posting, the condemnee may file
21 preliminary objections to the declaration of taking. The court,
22 upon cause shown, may extend the time for filing preliminary
23 objections. Preliminary objections shall be limited to and shall
24 be the exclusive method of challenging:
25 (i) the power or right of the authority to appropriate the
26 condemned property;
27 (ii) the sufficiency of the security;
28 (iii) any other procedure followed by the authority; or
29 (iv) the declaration of taking. Failure to raise these
30 matters by preliminary objections shall constitute a waiver
19750H1682B2118 - 22 -
1 thereof.
2 All preliminary objections shall be raised at one time and in
3 one pleading and shall state specifically the grounds relied
4 upon. They may be inconsistent and a copy thereof shall be
5 served upon the authority within 48 hours after filing.
6 The court shall determine promptly all preliminary
7 objections. If an issue of fact is raised, the court shall take
8 evidence by depositions or otherwise. The court may allow
9 amendment to or direct the filing of a more specific declaration
10 of taking.
11 (7) Petition for Appointment of Viewers.
12 Subsequent to the expiration of the time for filing
13 preliminary objections or the determination by the court of
14 questions raised by such objections and the filing of a more
15 specific declaration of taking, the authority or the condemnee
16 may file a petition with the court for appointment of viewers to
17 ascertain just compensation for any or all of the property
18 included in the declaration of taking.
19 (8) Appointment of Viewers; Notice.
20 Upon the filing of the petition, the court shall promptly
21 appoint three viewers who shall view the premises, hold hearings
22 and file a report.
23 The viewers shall promptly give written notice of their
24 appointment to the authority and to all named condemnees setting
25 forth the time and place of the view which shall be not less
26 than 20 days nor more than 90 days from the date of said notice.
27 Notice of subsequent hearings shall be given by not less than
28 ten days written notice.
29 Service of notice shall be in the same manner as provided for
30 service of notice of the filing of the declaration of taking.
19750H1682B2118 - 23 -
1 Proof of service and the manner of same shall be attached to the
2 viewers' report.
3 At the initial hearing the viewers shall ask all parties for
4 information concerning the names and addresses of any persons
5 who may have an interest in the property to be condemned and who
6 have not been notified concerning the hearing. If any such
7 persons are disclosed, the viewers shall adjourn the hearing to
8 allow such notice to such persons.
9 (9) Furnishing of Information to Viewers.
10 The authority and condemnees shall furnish the viewers with
11 such information as in the opinion of the viewers may be
12 necessary for the proper determination of just compensation. All
13 plans required for this purpose shall be supplied at the expense
14 of the authority.
15 (10) Powers of Viewers.
16 The viewers shall have power to administer oaths and
17 affirmations, to compel the attendance of witnesses, the
18 production of books and document, and to adjourn the proceedings
19 from time to time. All the viewers shall act, unless prevented
20 by sickness or other unavoidable cause; but a majority of and
21 viewers may hear, determine, act upon and report all matters
22 relating to the view for which they were appointed.
23 (11) Report of Viewers; Contents.
24 The viewers shall file a report which shall include in brief
25 and concise paragraph form:
26 The date of their appointment as viewers and of the
27 declaration of taking.
28 A statement of all notices issued by them with proof of
29 service to be attached.
30 A statement of the extent and nature of the interest
19750H1682B2118 - 24 -
1 condemned, together with a copy of any pertinent plan or other
2 document descriptive thereof.
3 A schedule of damages awarded or benefits assessed, to and by
4 whom payable, and for which property, separately stated as to
5 the various elements of damage including severance damages, if
6 any.
7 Their rulings on any written requests for conclusion of law
8 submitted to them.
9 Such other matters as they may deem relevant.
10 (12) Inability to Agree.
11 If a majority of the viewers are unable to agree on a
12 decision, three new viewers shall be appointed by the court upon
13 application of any interested party.
14 (13) Reports of Viewers; Notice of Filing.
15 Ten days before the filing of their report the viewers shall
16 mail a copy thereof to all parties or their attorneys of record,
17 with notice of the date of the intended filing and that the
18 report shall become final unless an appeal therefrom is filed
19 within 30 days from the date the report is filed. Prior to the
20 filing of their report they may correct any errors therein and
21 give notice thereof to the persons affected.
22 A report may be filed as to one or more of the properties
23 involved in a multiple condemnation. The viewers may combine in
24 one report two or more properties referred to them under
25 separate petitions provided such properties are included in the
26 same declaration of taking. Each such report shall be final as
27 to the property or properties included therein and subject to
28 separate appeal.
29 (14) Appeals; Time of Taking; Consolidation.
30 Any party aggrieved by the decision of the viewers may appeal
19750H1682B2118 - 25 -
1 to the court of common pleas within 30 days from the filing of
2 the report. The appeal shall raise all objections of law or fact
3 to the viewers' report. The appeal shall be signed by the
4 appellant or his attorney or his agent and no verification shall
5 be required. Any award of damages or assessment of benefits, as
6 the case may be, as to which no appeal is taken within 30 days,
7 shall become final as of course and shall constitute a final
8 judgment.
9 The court, on its own motion, or on application of any party
10 in interest, may consolidate separate appeals involving only
11 common questions of law as one proceeding.
12 If a condemnee having less than the entire interest in the
13 condemned property appeals the award to him, the authority shall
14 have an additional 15 days to appeal the entire award.
15 (15) Appeals; Contents.
16 The appeal shall set forth:
17 (i) The name of appellant.
18 (ii) A brief description or identification of the property
19 involved and the condemnee's interest therein.
20 (iii) A reference to the proceedings appealed from and the
21 date of the filing of the viewers' report.
22 (iv) Objections, if any, to the viewers' report, other than
23 to the amount of the award.
24 (v) A demand for trial, if desired. If the appellant desires
25 a jury trial, he shall at the time of filing the appeal, endorse
26 thereon, or file separately, a written demand for jury trial,
27 signed by him or counsel. If no demand for jury trial is made by
28 the appellant, any other party may file a written demand for
29 jury trial within 15 days after being served with a copy of the
30 appeal. If no party makes a demand for a jury trial as set forth
19750H1682B2118 - 26 -
1 herein, the right to jury trial shall be deemed to have been
2 waived and the court shall try the case without a jury.
3 The appellant shall serve a copy of the appeal on all other
4 parties within five days after filing the same. Proof of service
5 of a copy of the appeal shall be filed by the appellant.
6 No other pleadings shall be required and the cause shall be
7 deemed at issue.
8 (16) Disposition of Appeal.
9 All objections, other than to the amount of the award, raised
10 by the appeal, shall be determined by the court preliminarily.
11 The court may confirm, modify, change the report or refer it
12 back to the same or other viewers. A decree confirming,
13 modifying or changing the report shall constitute a final order.
14 The amount of damages shall be tried by jury, unless waived.
15 At the trial of the case, the condemnee shall be the
16 plaintiff and the authority shall be the defendant.
17 (17) Severance and Special Damages; Allocation.
18 Upon appeal from an award of viewers, the court, upon the
19 request of the plaintiff, shall, after the jury, or the court
20 (if the trial is without jury), has returned its general
21 verdict, make a specific finding and allocation as to the amount
22 of the general verdict attributable to severance damages to the
23 part of the property not taken.
24 The jury or the court, in a trial without a jury, shall make
25 specific findings as to the portion of the award or judgment
26 allocated to items of special damages authorized by this act or
27 any other provision of law.
28 (18) Costs of Proceedings.
29 All taxable costs, including filing fees, jury fees,
30 statutory witness fees and mileage, expenses of preparing plans
19750H1682B2118 - 27 -
1 under section 8(f)(9), the expense of transporting the judge and
2 jury to view the condemned property, and such other costs as the
3 court, in the interests of justice may allow, shall be paid by
4 the authority, unless the court, in a special case, should deem
5 that the interest of justice requires an apportionment of the
6 costs in some other manner amongst the parties.
7 (19) Waiver of Viewers' Proceedings.
8 The authority and condemnee may, by written agreement filed
9 with the court, waive proceedings before viewers and proceed
10 directly to the said court on agreed issues of law or fact. The
11 proceedings thereafter shall be the same as on appeal from a
12 report of viewers.
13 (20) Distribution of Award; Liens.
14 If the authority is unable to determine proper distribution
15 of the damages, it may, without payment into court, petition the
16 court to distribute the damages and shall furnish the court with
17 a schedule of proposed distribution.
18 Notice of the filing of the petition and schedule of proposed
19 distribution shall be given to all condemnees, mortgagees,
20 judgment creditors and other lienholders, as shown in the
21 proposed schedule, in such manner as the court may by general
22 rule or special order direct. The court may hear the matter or
23 may appoint a master to hear and report or may order any issue
24 tried by the court and jury as may appear proper under all the
25 circumstances. The court shall thereafter enter an order of
26 distribution of the fund.
27 (21) Payment into Court; Distribution.
28 Upon refusal to accept payment of the damages, or if the
29 party entitled thereto cannot be found, or if for any other
30 reason the damages cannot be paid to the party entitled thereto,
19750H1682B2118 - 28 -
1 the court upon petition of the authority which shall include a
2 schedule of proposed distribution, may direct payment of the
3 damages and costs into court in full satisfaction thereof.
4 The court thereafter upon petition of any party in interest,
5 shall distribute such funds or any other funds deposited in
6 court to the persons entitled thereto in accordance with the
7 procedure in section 8(f)(20), but if no petition is presented
8 within a period of five years of the date of payment into court,
9 the court shall order the fund or any balance remaining to be
10 paid to the Commonwealth without escheat. No fee shall be
11 charged against these funds.
12 When the court believes that the person who is entitled to
13 the fund is not a resident of the United States, its territories
14 or possessions, and would not have the actual use, enjoyment or
15 control of the funds distributable to him the court shall have
16 the power and authority:
17 (i) to direct only such payments to the person entitled
18 thereto as the court deems proper; or
19 (ii) to pay it through the Department of Revenue into the
20 State Treasury without escheat to be held for the benefit of the
21 person entitled thereto. The court which directed payment to the
22 State Treasury, upon petition of the person entitled to such
23 funds, and upon being satisfied that petitioner will have the
24 actual possession, benefit, use, enjoyment or control thereof,
25 shall enter a decree directing the Board of Finance and Revenue
26 to make repayment with interest at 2% per annum from the date
27 the funds were paid into the State Treasury to the date of
28 repayment.
29 (22) Joint Claims Required; Apportionment of Damages.
30 The claims of all persons having any interest in the same
19750H1682B2118 - 29 -
1 property, shall be heard or tried together and the award of the
2 viewers or the verdict on appeal from the viewers shall fix,
3 first, the total amount of damages for the property, and second,
4 the apportionment of the total amount of damages between or
5 among the several claimants therefor.
6 (23) Just Compensation and Measure of Damages.
7 The following factors shall be considered in any
8 determination of just compensation for any property interest
9 condemned by the authority:
10 (i) The condemnee shall be entitled to the difference
11 between the fair market value of a condemnee's entire property
12 interest immediately before the taking and as unaffected
13 thereby, except as otherwise provided herein, and the fair
14 market value of his remaining property interest after the taking
15 and as affected thereby.
16 (ii) Fair market value may reflect the present use of the
17 property and its highest and best reasonably available use, the
18 presence and value of fixtures and other pertinent factors. It
19 shall not reflect any change in value which is shown to be
20 substantially due to the general knowledge of imminence of
21 condemnation.
22 (iii) In any condemnation by the authority of the entire
23 assets, or a substantial portion of the assets, of a public
24 utility engaged in mass passenger transportation, where it is
25 contemplated that a substantial portion of the employees of such
26 utility shall be transferred to and become employees of the
27 authority, the viewers, in measuring the fair market value of
28 the property taken shall give due consideration to the effect on
29 such value of the amount of the legal liability accrued under
30 any pension or retirement system, plan or program, existing
19750H1682B2118 - 30 -
1 immediately prior to such condemnation, with respect to
2 employees in the employ of the utility at that time, as well as
3 any employees who shall have previously retired or employees who
4 may reasonably be expected to retire within any then existing
5 contract period; and such liability shall be assumed by the
6 authority.
7 (24) Revocation of Condemnation.
8 The authority, at any time before the proceedings are ended,
9 may relinquish all or any part of the property taken, by filing
10 a declaration of relinquishment in the court, whereupon title
11 shall revest in the condemnee as of the date of the filing of
12 the declaration of taking. Notice of said relinquishment shall
13 be recorded in the office of the recorder of deeds of the county
14 in which the property taken is located, with the authority as
15 the grantor and the condemnee as the grantee, and the notice of
16 said relinquishment shall be served on the condemnee in the same
17 manner as provided for service of the declaration of taking.
18 Where condemned property is relinquished, the condemnee shall be
19 entitled to the damages sustained by him including costs,
20 expenses and reasonable attorney's fees and such damages shall
21 be assessed by the court, or the court may refer the matter to
22 viewers to ascertain and assess the damages sustained by the
23 condemnee, whose award shall be subject to appeal as provided in
24 this act. The authority and the condemnee without the filing of
25 a declaration of relinquishment provided herein, may, by
26 agreement, effect a revesting of title in the condemnee.
27 (25) Right to Enter Property Prior to Condemnation.
28 Prior to the filing of the declaration of taking, the
29 authority or its employees or agents, shall have the right to
30 enter upon any land or improvement which it has the power to
19750H1682B2118 - 31 -
1 condemn, in order to make studies, surveys, tests, soundings and
2 appraisals. Any actual damages sustained by the owner of
3 property entered upon by the authority for the foregoing reasons
4 shall be paid by the authority and shall be assessed by the
5 court or viewers or by agreement in the same manner as provided
6 in section 8(f)(23).
7 Section 9. Use of Ways Occupied by Other Passenger
8 Utilities.--
9 The authority shall not have the right to use any street or
10 public way, presently occupied by a public utility engaged in
11 local passenger transportation, for a competing purpose, without
12 the agreement of such public utility.
13 Section 10. Loans, Bonds and Certificates; Trust
14 Indentures.--
15 (a) The authority shall have the continuing power to borrow
16 money for the purpose of acquiring any transportation system
17 (including any cash funds of such system reserved to replace
18 worn out or obsolete equipment and facilities) and for acquiring
19 necessary cash working funds or for acquiring, constructing,
20 reconstructing, extending or improving its transportation system
21 or any part thereof and for acquiring any property and equipment
22 useful for the construction, reconstruction, extension,
23 improvement or operation of its transportation system or any
24 part thereof, and for any other of its corporate purposes. The
25 authority shall also have the continuing power to issue and
26 deliver evidence of its indebtedness in payment in whole or in
27 part for all or any part of any transportation system, or any
28 bonds, shares or other securities of any corporation owning or
29 operating any such system, or any franchises, property,
30 equipment or interests acquired or to be acquired by the
19750H1682B2118 - 32 -
1 authority. For the purpose of evidencing the obligation of the
2 authority to repay any money borrowed as aforesaid, or to pay
3 any indebtedness incurred in connection with the acquisition of
4 all or any part of any transportation system, or any bonds,
5 shares or other securities of any corporation owning or
6 operating any such system, or any franchises, property,
7 equipment or interests as aforesaid, the authority may, pursuant
8 to resolution adopted by the board, from time to time, issue and
9 dispose of its interest-bearing bonds or certificates and may
10 also, from time to time, issue and dispose of its interest-
11 bearing bonds or certificates, to refund any bonds or
12 certificates at maturity or pursuant to redemption provisions or
13 at any time before maturity with the consent of the holders
14 thereof. All such bonds and certificates shall be payable solely
15 from the revenues or income to be derived from the
16 transportation system including grants, gifts or contributions
17 from the Federal, State or local governments, their agencies or
18 instrumentalities, or any other source; may bear such date or
19 dates; may mature at such time or times not exceeding 40 years
20 from their respective dates; may bear interest at such rate or
21 rates; may be in such form; may carry such registration
22 privileges; may be executed in such manner; may be payable at
23 such place or places; may be made subject to redemption in such
24 manner and upon such terms with or without premium as is stated
25 on the face thereof; may be authenticated in such manner and may
26 contain such terms and covenants, all as may be authorized by
27 the board. Notwithstanding the form or tenor thereof, and in the
28 absence of an express recital on the face thereof that it is
29 nonnegotiable, all such bonds and certificates shall be
30 negotiable instruments. Pending the preparation and execution of
19750H1682B2118 - 33 -
1 any such bonds or certificates, temporary bonds or certificates
2 may be issued with or without interest coupons as may be
3 authorized by the board.
4 (b) To secure the payment of any or all of such bonds or
5 certificates and for the purpose of setting forth the covenants
6 and undertaking of the authority in connection with the issuance
7 thereof and the issuance of any additional bonds or certificates
8 payable from such revenue or income as well as the use and
9 application of the revenue or income to be derived from the
10 transportation system, the authority may execute and deliver a
11 trust indenture or indentures. A remedy for any breach or
12 default of the terms of any such trust indenture by the
13 authority may be by mandamus or injunction proceeding, or other
14 proceeding in law or in equity in any court of competent
15 jurisdiction to compel performance and compliance therewith, but
16 the trust indenture may prescribe by whom or on whose behalf
17 such action may or may not be instituted.
18 (c) Under no circumstances shall any bonds or certificates
19 issued by the authority or any other obligation of the authority
20 be or become an indebtedness or obligation of the Commonwealth
21 or of any political subdivision thereof.
22 (d) Before any such bonds or certificates (excepting
23 refunding bonds or certificates and bonds or certificates issued
24 in payment in whole or in part of all or any part of any
25 transportation system, or any bonds, shares or other securities
26 of any corporation owning or operating any such system, or any
27 franchises, property, equipment or interests) are sold, the
28 entire authorized issue or any part thereof shall be offered for
29 sale as a unit after advertising for bids at least three times
30 in a daily newspaper of general circulation published in the
19750H1682B2118 - 34 -
1 metropolitan area, the last publication to be at least ten days
2 before bids are required to be filed. Copies of such
3 advertisement may be published in any newspaper or financial
4 publication in the United States. All bids shall be sealed,
5 filed and publicly opened as authorized by the board, and the
6 bonds or certificates shall be awarded to the highest
7 responsible bidder or bidders therefor. The authority shall have
8 the right to reject all bids and readvertise for bids in the
9 manner provided for in the initial advertisement. However, if no
10 bids are received, such bonds or certificates may be sold at not
11 less than par value and accrued interest without further
12 advertising within 60 days after the bids are required to be
13 filed pursuant to any advertisement. The foregoing requirements
14 of competitive bidding shall not be applicable to bonds or
15 certificates or other evidences of indebtedness issued in
16 payment in whole or in part for all or any part of any
17 transportation system, or any bonds, shares or other securities
18 of any corporation owning or operating any such system, or any
19 franchises, property, equipment or interests acquired or to be
20 acquired by the authority, nor shall such requirements be
21 applicable to notes issued by the authority which mature in not
22 more than three years from date of issue and which are issued in
23 anticipation of financing over a longer term.
24 (e) The bonds of the authority, the sale or transfer
25 thereof, and the income therefrom shall, at all times, be free
26 from taxation for State or local purposes under any law of this
27 Commonwealth or political subdivision thereof.
28 (f) Neither the board members of the authority nor any
29 person executing the bonds shall be liable personally on any
30 such bonds by reason of the issuance thereof.
19750H1682B2118 - 35 -
1 (g) Bonds of the authority which are sold for cash may be
2 sold at not less than 95% of par and accrued interest. In case
3 any of the officers of the authority, whose signatures appear on
4 any bonds or coupons shall cease to be officers before the
5 delivery of such bonds, their signatures shall, nevertheless, be
6 valid and sufficient for all purposes, the same as if such
7 officers had remained in office until such delivery.
8 (h) Any bond reciting in substance that has been issued by
9 the authority to accomplish the public purposes of this act,
10 shall be conclusively deemed in any suit, action or proceeding
11 involving the validity or enforceability of such bond or
12 security therefor to have been issued for such purpose.
13 Section 11. Acquisition of Equipment; Agreements and
14 Leases.--
15 (a) The authority shall have power to purchase equipment
16 such as cars, trolley buses and motor buses and may execute
17 agreements, leases and equipment trust certificates in the form
18 customarily used in such cases appropriate to effect such
19 purchase, and may dispose of such equipment trust certificates.
20 When feasible, such certificates shall be offered for public
21 sale in a manner similar to that provided for the sale of bonds
22 in this act. All money required to be paid by the authority
23 under the provisions of such agreements, leases, and equipment
24 trust certificates, shall be payable solely from the revenue or
25 income to be derived from the transportation system and from
26 grants and loans as provided elsewhere in this act. Payment for
27 such equipment or rentals therefor may be made in installments
28 and the deferred installments may be evidenced by equipment
29 trust certificates payable solely from such revenue, income,
30 grants or loans and title to such equipment shall not vest in
19750H1682B2118 - 36 -
1 the authority until the equipment trust certificates are paid.
2 (b) The agreement to purchase may direct the vendor to sell
3 and assign the equipment to a bank or trust company duly
4 authorized to transact business in the Commonwealth as trustee
5 for the benefit and security of the equipment trust certificates
6 and may direct the trustee to deliver the equipment to one or
7 more designated officers of the authority and may authorize the
8 trustee simultaneously therewith to execute and deliver a lease
9 of the equipment to the authority.
10 (c) The agreements and leases shall be duly acknowledged
11 before some person authorized by law to take acknowledgments of
12 deeds and in the form required for acknowledgments of deeds, and
13 such agreements, leases and equipment trust certificates shall
14 be authorized by resolution of the board and shall contain such
15 covenants, conditions and provisions as may be deemed necessary
16 or appropriate to insure the payment of the equipment trust
17 certificates from the revenue or income to be derived from the
18 transportation system.
19 (d) The covenants, conditions and provisions of the
20 agreements, leases and equipment trust certificates shall not
21 conflict with any of the provisions of any trust indenture
22 securing the payment of bonds or certificates of the authority.
23 (e) An executed copy of each such agreement and lease shall
24 be filed in the office of the Secretary of the Commonwealth who
25 shall be entitled to receive $1 for each such copy filed with
26 him, and which filing shall constitute notice to any subsequent
27 judgment creditor or any subsequent purchaser. Each vehicle so
28 purchased and leased shall have the name of the owner and lessor
29 plainly marked upon both sides thereof, followed by the words
30 "Owner and Lessor."
19750H1682B2118 - 37 -
1 (f) An authority shall have power by the resolution, trust,
2 indenture, mortgage, lease or other contract to confer upon any
3 obligees holding or representing a specified percentage in
4 bonds, or holding a lease, the right, in addition to all rights
5 that may otherwise be conferred, upon the happening of an event
6 of default as defined in such resolution or instrument, by suit,
7 action or proceeding in any court of competent jurisdiction:
8 (1) To obtain the appointment of a receiver of any real
9 property of the authority and of the rents and profits
10 therefrom. If such receiver be appointed, he may enter and take
11 possession of such real property, operate the same and collect
12 and receive all revenues or other income thereafter arising
13 therefrom, and shall keep such moneys in a separate account and
14 apply the same in accordance with the obligations of the
15 authority as the court shall direct.
16 (2) To require the authority, and the board members thereof,
17 to account as if it and they were the trustees of an express
18 trust.
19 Section 12. Provisions of Bonds; Trust Indentures.--
20 In connection with the issuance of bonds or the incurring of
21 obligations under leases, and in order to secure the payment of
22 such bonds or obligations, the authority, in addition to its
23 other powers, shall have power:
24 (1) To pledge all or any part of its gross or net revenues
25 to which its right then exists or may thereafter come into
26 existence.
27 (2) To mortgage all or any part of its real or personal
28 property then owned or thereafter acquired.
29 (3) To covenant against pledging all or any part of its
30 revenues, or against mortgaging all or any part of its real or
19750H1682B2118 - 38 -
1 personal property to which its right or title exists or may
2 thereafter come into existence, or against permitting or
3 suffering any lien on such revenues or property to covenant with
4 respect to limitations on its right to sell, lease or otherwise
5 dispose of any of its real property, and to covenant as to what
6 other or additional debts or obligations may be incurred by it.
7 (4) To covenant as to the bonds to be issued and as to the
8 issuance of such bonds, in escrow, or otherwise, and as to the
9 use and disposition of the proceeds thereof, to provide for the
10 replacement of lost, destroyed, or mutilated bonds, to covenant
11 against extending the time for the payment of its bonds or
12 interest thereon, and to redeem the bonds and to covenant for
13 their redemption and to provide the terms and conditions
14 thereof.
15 (5) To covenant, subject to the limitations contained in
16 this act, as to the amount of revenues to be raised each year,
17 or other period of time, as well as to the use and disposition
18 to be made thereof, to create or to authorize the creation of
19 special funds for debt service or other purposes, and to
20 covenant as to the use and disposition of the moneys held in
21 such funds.
22 (6) To prescribe the procedure, if any, by which the terms
23 of any contract with bondholders may be amended or abrogated,
24 the amount of bonds, the holders of which must consent thereto,
25 and the manner in which such consent may be given.
26 (7) To covenant as to the use of any or all of its real or
27 personal property, to warrant its title, and to covenant as to
28 the maintenance of its real and personal property, the
29 replacement thereof, the insurance to be carried thereon, and
30 the use and disposition of insurance moneys.
19750H1682B2118 - 39 -
1 (8) To covenant as to the rights, liabilities, powers and
2 duties arising upon the breach by it of any covenant, condition
3 or obligation, and to covenant and prescribe, in the event of
4 default, as to terms and conditions upon which any or all of its
5 bonds or obligations shall become or may be declared due before
6 maturity, and as to the terms and conditions upon which such
7 declaration and its consequences may be waived.
8 (9) To vest in a trustee, or the holders of bonds, or any
9 proportion of them, the right to enforce the payment of the
10 bonds or any covenants securing or relating to the bonds, to
11 vest in a trustee the right, in the event of a default by the
12 authority, to take possession and use, operate and manage any
13 real property and to collect the rents and revenues arising
14 therefrom and to dispose of such moneys in accordance with the
15 agreement of the authority with such trustee, to provide for the
16 powers and duties of a trustee and to limit liabilities thereof,
17 and to provide the terms and conditions upon which the trustee
18 or the holders of bonds or any proportion of them may enforce
19 any covenant or rights securing or relating to the bonds.
20 (10) To make covenants other than, and in addition to, the
21 covenants herein expressly authorized; to make such covenants
22 and to do any and all such acts and things as may be necessary
23 or convenient or desirable in order to secure its bonds, or in
24 the absolute discretion of the authority, as will tend to
25 accomplish the purposes of this act, by making the bonds more
26 marketable notwithstanding that such covenants, acts or things
27 may not be enumerated herein.
28 Section 13. Bonds and Certificates to be Legal
29 Investments.--
30 The Commonwealth and all political subdivisions and public
19750H1682B2118 - 40 -
1 bodies and public officers of any thereof, all banks, bankers,
2 trust companies, saving banks and institutions, building and
3 loan associations, saving and loan associations, investment
4 companies and other persons carrying on a banking business, all
5 insurance companies, insurance associations and other persons
6 carrying on an insurance business and all executors,
7 administrators, guardians, trustees and other fiduciaries may
8 legally invest any sinking funds, moneys or other funds
9 belonging to them or within their control in any bonds or
10 certificates issued pursuant to this act, it being the purpose
11 of this section to authorize the investment in such bonds or
12 certificates of all sinking, insurance, retirement,
13 compensation, pension and trust funds, whether owned or
14 controlled by private or public persons or officers.
15 Section 14. Investment and Reinvestment of Funds.--
16 The authority shall have the power to invest and reinvest any
17 funds held in reserve or sinking funds not required for
18 immediate disbursement (i) in the following securities as
19 defined in 20 Pa.C.S. Chapter 73 (relating to fiduciaries
20 investments): obligations of the United States and of the
21 Commonwealth of Pennsylvania; and obligations of Federal
22 organizations; and (ii) for sinking fund purposes only, in bonds
23 or certificates of the authority at not to exceed their par
24 value or their call price plus accrued interest; and to sell any
25 of the securities acquired under subparagraph (i) whenever the
26 funds are needed for disbursement. Such investment or
27 reinvestment of any fund shall not be in conflict with any
28 provisions of any trust agreement securing the payment of bonds
29 or certificates of the authority.
30 Section 15. Administrative Board.--
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1 The governing and administrative body of the authority shall
2 be a board, to be known as the Transportation Board of the
3 Metropolitan Area, consisting of members to be appointed as
4 hereinafter provided, who, except for the appointee of the
5 Governor, shall be residents of the metropolitan area. No board
6 member shall be allowed any fees, perquisites or emoluments,
7 reward or compensation for services as a member or officer of
8 the authority, but shall be reimbursed for actual expenses
9 incurred in the performance of his or her duties.
10 Section 16. Appointment of Board Members.--
11 (a) At any time after the effective date of this act:
12 (1) The Governor may appoint as a member of the board, one
13 person, who may be an ex-officio appointee from among the
14 various officials in the government of the Commonwealth, and
15 whose term as a board member shall run concurrently with that of
16 his Commonwealth position, if any, or the term of the appointing
17 Governor, whichever is shorter.
18 (2) The county commissioners in each county may appoint two
19 persons for each county to serve as board members, for staggered
20 initial terms, two of which terms, but not two from the same
21 county, shall expire on the first day of September, beginning in
22 1976 and continuing until all initial terms shall have expired.
23 Specific expiration dates for the several terms shall be
24 apportioned among the counties in such manner as shall be agreed
25 upon by the appointing powers.
26 (b) At the expiration of the term of any board member, his
27 successor shall be appointed for a term of five years from such
28 expiration date.
29 (c) The appointing powers shall certify their respective
30 appointments, whether initial or subsequent, to the Secretary of
19750H1682B2118 - 42 -
1 the Commonwealth. Within 30 days after certification of his or
2 her appointment and before entering upon the duties of his or
3 her office, each member of the board shall take and subscribe
4 the constitutional oath of office and file it in the office of
5 the Secretary of the Commonwealth.
6 Section 17. Resignation and Removal of Members; Vacancies.--
7 Members of the board shall hold office until their respective
8 successors have been appointed and have qualified. The
9 appointing power may remove any member of the board appointed by
10 them, but only in case of incompetency, neglect of duty or
11 malfeasance in office. No member shall be thus removed except
12 after having been given a copy of the charges against him or her
13 and an opportunity to be publicly heard, at a place in the
14 metropolitan area, in person or by counsel, in his or her own
15 defense upon not less than ten days' written notice. In case of
16 failure to qualify within the time required or of abandonment of
17 his or her office or in case of death, conviction of a felony or
18 removal from office, the office shall become vacant. A member
19 shall be deemed to have abandoned his or her office upon failure
20 to attend any regular or special meeting of the board, without
21 excuse approved by resolution of the board, for a period of four
22 months, or upon removal of his or her residence from the
23 metropolitan area. Each vacancy shall be filled for the
24 unexpired term by appointment in like manner and with like
25 regard as to the place of residence of the appointee as in case
26 of expiration of the term of a member of the board. A member
27 removed for incompetency, neglect of duty or malfeasance in
28 office shall have the right to appeal such removal to the court
29 of common pleas of the county for which he was appointed, but
30 only on the ground of error of law or manifest and flagrant
19750H1682B2118 - 43 -
1 abuse of discretion.
2 Section 18. Meetings, Quorum, Approval of Resolutions;
3 Election of Chairman.--
4 (a) Regular meetings of the board shall be held in the
5 metropolitan area at least once in each calendar month except
6 July or August, the time and place of such meetings to be fixed
7 by the board. A majority of the board shall constitute a quorum
8 for the transaction of business. All action of the board shall
9 be by resolution and the affirmative vote of a majority of all
10 the members shall be necessary for the adoption of any
11 resolution. No action by the board, to which an express
12 objection has been made, pursuant to this section, by a board
13 member or members representing a county or counties having one-
14 third or more of the population of the metropolitan area, as
15 determined by the most recent United States decennial census,
16 shall be carried unless supported at a subsequent regular
17 meeting of the board by the votes of at least three-quarters of
18 the membership of the board. In case of disagreement between
19 members representing the same county, each member shall be
20 deemed to represent one-half of the population of that county.
21 (b) The board shall elect from among its members a chairman
22 and a vice-chairman, who shall serve for terms of one year and
23 until their successors shall have been elected and qualified,
24 and shall perform such duties as the board shall, by resolution,
25 determine.
26 (c) All resolutions and all proceedings of the authority and
27 all documents and records in its possession shall be public
28 records and open to public inspection, except such documents and
29 records as shall be kept or prepared by the board for use in
30 negotiations, actions or proceedings to which the authority is
19750H1682B2118 - 44 -
1 or may become a party.
2 Section 19. Secretary, Treasurer, Oath, Bond.--
3 The board shall appoint a secretary and a treasurer, neither
4 of whom shall be a member of the board, to hold office during
5 the pleasure of the board, and shall fix their duties and
6 compensation. The secretary shall not be engaged in any other
7 business or employment during his or her tenure of office as
8 secretary of the board. Before entering upon the duties of their
9 respective offices, they shall take and subscribe the
10 constitutional oath of office. The treasurer and such other
11 officers and employees of the authority, and such members of the
12 board as the board may determine, shall execute corporate surety
13 bonds, conditioned upon the faithful performance of their
14 respective duties. A blanket form of surety bond may be used for
15 this purpose if the board deems such procedure to be practical
16 and prudent. The obligation of the sureties shall not extend to
17 any loss sustained by the insolvency, failure or closing of any
18 national or State bank wherein the treasurer has deposited funds
19 if the bank has been approved by the board as a depository for
20 these funds. The oaths of office and the surety bond or bonds
21 shall be filed in the principal office of the authority.
22 Section 20. Deposit of Funds, Checks and Drafts; Security
23 Collateral.--
24 (a) All funds deposited by the treasurer in any bank shall
25 be placed in the name of the authority and shall be withdrawn or
26 paid out only by check or draft upon the bank signed by the
27 treasurer and countersigned by the chairman of the board. The
28 board may designate any of its members of any officer or
29 employee of the authority to affix the signature of the chairman
30 and another to affix the signature of the treasurer to any check
19750H1682B2118 - 45 -
1 or draft for payment of salaries or wages and for the payment of
2 any other obligation of not more than $2,500.
3 (b) Whenever the business of the authority requires the
4 affixing of the signature of any officer or employee of the
5 authority, the use of a facsimile signature, when expressly
6 authorized by resolution of the board, shall have the same force
7 and effect as an original signature.
8 (c) All bank balances to the extent the same are not insured
9 shall be continuously secured by a pledge of direct obligations
10 of United States of America, of the Commonwealth or of any
11 municipality in the metropolitan area, having an aggregate
12 market value, exclusive of accrued interest at all times at
13 least equal to the balance on deposit in such bank. Such
14 securities shall either be deposited with the treasurer of the
15 authority or be held by a trustee or agent satisfactory to the
16 authority. All banks and trust companies are authorized to give
17 such security for such balances.
18 Section 21. Signatures of Officers Ceasing to Hold Office.--
19 In case any officer whose signature appears upon any check,
20 draft, bond, certificate or interest coupon issued pursuant to
21 this act, ceases to hold his office before the delivery thereof
22 to the payee or the purchaser of any bond or certificate, the
23 signature nevertheless shall be valid and sufficient for all
24 purposes with the same effect as if he had remained in office
25 until delivery thereof.
26 Section 22. General Manager.--
27 The board, before engaging in transportation operations,
28 shall appoint a general manager. The general manager shall have
29 management of the properties and business of the authority and
30 the employees thereof, subject to the general control of the
19750H1682B2118 - 46 -
1 board, shall direct the enforcement of all resolutions, rules
2 and regulations of the board and shall perform such other duties
3 as may be prescribed from time to time by the board. With the
4 approval of the board, he shall appoint such officers and
5 employees to be under the general manager as the board shall
6 determine.
7 Section 23. Legal Division: Chief Counsel.--
8 (a) The board, before engaging in transportation operations,
9 shall establish a legal division which shall be administered by
10 a chief counsel, who shall be an attorney-at-law admitted to
11 practice before the Supreme Court of the Commonwealth, and who
12 shall be appointed by the board to serve at its discretion. The
13 legal division, in addition to the chief counsel, shall consist
14 of such attorneys and other employees as the board from time to
15 time shall determine to be necessary, and who shall be appointed
16 by the chief counsel, with the approval of the board. The legal
17 division shall administer the legal affairs of the board, shall
18 prosecute and defend, settle or compromise all suits or claims
19 for and on behalf of the authority, and shall advise the board
20 and its officers in all matters relating to their official
21 duties.
22 (b) The chief counsel may, from time to time, with the
23 approval of the board, retain such other legal counsel on such
24 terms and for such purposes as shall be deemed by the board to
25 be necessary or desirable. Nothing in this section or in the
26 preceding section shall be construed so as to limit the power of
27 the legal or other officers of the counties and municipalities
28 comprising the metropolitan area to act in behalf of the board
29 in their official capacities when requested so to do by
30 resolution of the board.
19750H1682B2118 - 47 -
1 Section 24. Other Employees.--
2 The board shall provide for the employment of such other
3 officers, agents, consultants, engineers and employees as may be
4 necessary for the performance of the work of the authority. The
5 board shall have the right to bargain collectively and enter
6 into agreements with labor organizations. The board shall
7 recognize and be bound by existing labor union agreements where
8 they exist between labor unions and transportation companies
9 that are acquired, purchased, condemned or leased by the board.
10 It shall designate their duties and require bonds of such of
11 them as the board may designate. The compensation of the general
12 manager, chief counsel, comptroller, chief engineer and all
13 other officers, attorneys, consultants, agents and employees
14 shall be fixed by the board. With the exception of the
15 secretary, any of the foregoing may be appointed, retained,
16 hired or employed on a part-time basis and may be engaged in
17 other business or professional activities. No salaried executive
18 officer of the authority shall hold any other office in or be an
19 employee of the Federal, State or any county or municipal
20 government except an office or employment without compensation
21 or an office in the Military Reserve or National Guard.
22 Section 25. Classification of Positions and Employments;
23 Discharge or Demotion of Officers or Employees; Hearings;
24 Seniority; Pensions and Retirement.--
25 (a) The board shall classify all the offices, positions and
26 grades of regular employment required, excepting that of the
27 chairman of the board, the general manager, secretary,
28 treasurer, chief counsel and other attorneys in the legal
29 division, with reference to the duties thereof and the
30 compensation fixed therefor and adopt rules governing
19750H1682B2118 - 48 -
1 appointments to any of such offices or positions on the basis of
2 merit and efficiency. No discrimination shall be made in any
3 appointment or promotion because of race, creed, color or
4 political or religious affiliations. No officer or employee
5 shall be discharged or demoted except for just cause.
6 (b) The board may abolish any office or reduce the force of
7 employees for lack of work or lack of funds, but in so doing,
8 the officer or employee with the shortest service record in the
9 class and grade to which he belongs shall be first released from
10 service and shall be reinstated in order of seniority, when
11 additional force of employees is required. Seniority shall be
12 considered a working condition. No qualified person shall be
13 laid off if a transfer to another job, division or department
14 within the transportation system can be arranged.
15 (c) There shall be established and maintained by the
16 authority a pensions and retirement system to provide for
17 payments when due under such system or as modified from time to
18 time by resolution of the board. For this purpose, both the
19 board and the participating employees shall make such periodic
20 payments to the established system as may be determined by such
21 resolution. The board may provide for participation by its
22 employees in the social security program or, in lieu of social
23 security payments required to be paid by private corporations
24 engaged in similar activity, shall make payments into such
25 established system at least equal in amount to the amount so
26 required to be paid by such private corporations, or make such
27 other arrangements as will accomplish the same purpose.
28 Provisions shall be made by the board for all officers and
29 employees of the authority appointed pursuant to this act to
30 become, subject to reasonable rules and regulations, members and
19750H1682B2118 - 49 -
1 beneficiaries of the pensions and requirement system, with
2 uniform rights, privileges, obligations and status as to the
3 class in which such officers and employees belong. Members and
4 beneficiaries of any pensions or retirement system established
5 by a transportation system acquired by the authority shall
6 continue to have rights, privileges, benefits, obligations and
7 status with respect to such previously established system. To
8 achieve the purposes set forth in this subsection, the board
9 shall make appropriate rules and regulations and from time to
10 time shall obtain competent actuarial advice.
11 Section 26. Transfers of Facilities or Things of Value to
12 any Authority.--
13 Any county, municipality, school district, corporation or
14 person, or group, may and they are hereby authorized to sell,
15 lease, lend, grant, convey, transfer or pay over to any
16 authority, with or without consideration, any project or any
17 part or parts thereof, or any interest in real or personal
18 property or any funds available for building construction or
19 improvement purposes, including the proceeds of bonds previously
20 or hereafter issued for building construction or improvement
21 purposes, or any money or thing of value, including services,
22 which may be used by the authority in the construction,
23 acquisition, improvement, maintenance or operation of any
24 project or for any other of its corporate purposes, any other
25 law to the contrary notwithstanding.
26 Section 27. Compacts to Finance Operations and Particular
27 Projects.--
28 (a) The Commonwealth shall enter into a compact with the
29 authority to provide for meeting the authority's capital or
30 operating budget by appropriations, annual or otherwise, of such
19750H1682B2118 - 50 -
1 sums and in such proportions as may be agreed upon in such
2 compact. The obligation incurred thereby shall be for the term
3 as set forth in the compact without regard to the provisions of
4 any law to the contrary, and shall constitute a commitment and
5 obligation, binding and absolute to appropriate and pay over the
6 necessary funds in accordance therewith. The said operating
7 budget shall include all sums of money necessary for the
8 formation and organization of any authority and all items of
9 operating expenses in connection with said authority, as well as
10 necessary funds for planning and research appropriate and
11 consistent with the purport of this act and any compact entered
12 into pursuant to this act.
13 (b) Such a compact may also provide for the financing of a
14 particular mass transportation project in such manner as shall
15 be provided for in the compact.
16 (c) Whenever a party signatory to such a compact thereby
17 expresses its approval of the budget for financing a particular
18 project, this shall then constitute a commitment and obligation,
19 binding and absolute, on the part of such party signatory to
20 appropriate the necessary funds in accordance therewith.
21 (d) No commitment or obligation involving the payment of
22 moneys to or on behalf of such authority shall exist in any
23 instance on the part of the Commonwealth unless and until such
24 commitment or obligation shall first have been expressly and
25 lawfully undertaken and assumed by the Commonwealth.
26 Section 28. Contracts, Procurement and Sale of Property;
27 Concessions; Advertisement; Bidding.--
28 (a) Except in the purchase of unique articles or articles
29 which, for any other reason, cannot be obtained in the open
30 market and except as hereinafter provided, competitive bids
19750H1682B2118 - 51 -
1 shall be secured before any purchase or sale, by contract or
2 otherwise is made or before any contract is awarded for
3 construction, alterations, supplies, equipment, repairs or
4 maintenance or for rendering any services to the authority other
5 than professional services; and the purchase shall be made from
6 or the contract shall be awarded to the lowest responsible
7 bidder; or a sale to the highest responsible bidder. No purchase
8 of any unique article or other articles which cannot be obtained
9 in the open market shall be made without express approval of the
10 board where the amount involved is in excess of $5,000.
11 (b) All purchases and sales in excess of $5,000 shall be
12 awarded after advertising in a local newspaper of general
13 circulation in the metropolitan area at least two weeks prior to
14 the bid opening. Bids shall be publicly opened and read aloud at
15 a date, time, and place designated in the invitation to bid.
16 Invitations to bid shall be sent at least one week prior to the
17 bid opening to at least three potential bidders who are
18 qualified technically and financially to submit bids, or in lieu
19 thereof a memorandum shall be kept on file showing that less
20 than three potential bidders so qualified exist in the market
21 area within which it is practicable to obtain bids.
22 (c) Written price quotations from at least three qualified
23 and responsible vendors shall be obtained for all purchases and
24 sales under $5,000 and over $1,000, or in lieu thereof, a
25 memorandum, approved by the board, shall be kept on file showing
26 that less than three vendors so qualified exist in the market
27 area within which it is practicable to obtain quotations, except
28 as hereinafter provided.
29 (d) Purchases or sales under $1,000 may be negotiated with
30 or without competitive bidding under sound procurement
19750H1682B2118 - 52 -
1 procedures as promulgated and established by the board.
2 (e) Competitive bidding requirements may be waivered if it
3 is determined by the general manager, or in such other manner as
4 the board may by regulation provide, that an emergency directly
5 and immediately affecting customer service, or public health,
6 safety or welfare requires immediate delivery of supplies,
7 materials, equipment or services. A record of circumstances
8 explaining the emergency shall be submitted to the board at its
9 next regular meeting and thereafter kept on file.
10 (f) All concessions granted by the authority for the sale of
11 products or the rendition of services for a consideration on
12 authority property shall be awarded only pursuant to written
13 specifications after competitive bidding and to the highest
14 responsible bidder in a manner similar to that required by the
15 preceding subsection relating to contracts for procurement
16 involving an expenditure of more than $5,000. The foregoing
17 requirement for competitive bidding shall not apply to any
18 concession which has been granted by a transportation system
19 acquired by the authority and which by the terms of the
20 agreement granting it will terminate within one year from date
21 of the acquisition of the transportation system by the
22 authority, nor to any concession involving the estimated receipt
23 by the authority of less than $1,000 over the period for which
24 the concession is granted.
25 (g) Contracts for the sale or lease of real property owned
26 by the authority shall be awarded after competitive bidding as
27 shown in subsection (b), except where contract is entered into
28 with the Commonwealth or any political subdivision or agency or
29 instrumentality thereof or with the United States government or
30 any agency or instrumentality thereof.
19750H1682B2118 - 53 -
1 (h) Contracts for the management of authority-owned
2 property, such as bus routes or subway systems may be negotiated
3 and awarded by an affirmative vote of one more than a majority
4 of all members of the board.
5 (j) Requirements shall not be split into parts for the
6 purpose of avoiding the provisions of this section.
7 (k) The authority shall have the right to reject any or all
8 bids or parts of any or all bids, whenever, in the opinion of
9 the board, such rejection is necessary for the protection of the
10 interests of the authority. In every such case, a record shall
11 be made, setting forth the reason for such rejection, which
12 record shall thereafter be kept on file.
13 (l) The board shall adopt rules and regulations to
14 effectuate the provisions of this section.
15 Section 29. Conflict of Interest.--
16 Every member of the board and every employee of the authority
17 who knowingly has any interest, direct or indirect, in any
18 contract to which the authority is, or is about to become, a
19 party, or in any other business of the authority, or in any firm
20 or corporation doing business with the authority, shall make
21 full disclosure of such interest to the board. Failure to
22 disclose such an interest shall constitute misconduct, for which
23 a board member may be removed by the appointing power, or an
24 employee may be discharged or otherwise disciplined at the
25 discretion of the board. Whenever, in the opinion of the board,
26 any such interest on the part of any board member or any
27 employee, shall constitute a conflict of interest detrimental to
28 the authority, the board shall require such action or abstention
29 by such board member or employee as it may deem necessary or
30 desirable to protect the interest of the authority. The board
19750H1682B2118 - 54 -
1 shall promulgate such rules and regulations as may be necessary
2 to effectuate the purposes of this section.
3 Section 30. Fiscal Operating Year; Budget; Capital
4 Program.--
5 The board shall establish a fiscal operating year. At least
6 90 days prior to the beginning of the first full fiscal year
7 after the creation of the authority and, annually thereafter,
8 the board shall cause to be prepared and submitted to it a
9 tentative operating budget and a tentative capital budget for
10 the ensuing fiscal year. The tentative budgets shall be
11 considered by the board and, subject to any revision and
12 amendments as may be determined, shall be adopted at least 30
13 days prior to the first day of the ensuing fiscal year as the
14 budgets for that year. The board shall establish such rules as
15 are necessary for proper observance of the budgets.
16 Simultaneously with the adoption of the budget, the board shall
17 adopt a tentative capital program covering the ensuing six
18 years.
19 Section 31. Financial Statements and Reports; Audit.--
20 (a) As soon after the end of each fiscal year as is
21 feasible, the board shall cause to be prepared and printed a
22 report and financial statement of the authority's operations for
23 the previous year and of its assets and liabilities. A
24 reasonably sufficient number of copies of such report shall be
25 printed for distribution to persons interested upon request. A
26 copy of such report shall be filed with the Secretary of the
27 Commonwealth, the county clerk of each county in the
28 metropolitan area, and the clerk of each municipality which has
29 granted rights to the authority by ordinance and a copy of such
30 report shall be addressed to and mailed to the mayor and city
19750H1682B2118 - 55 -
1 council or the governing body of such municipality. The board
2 from time to time shall mail to the persons and offices
3 specified in the preceding sentence copies of such interim
4 financial reports as may be prepared by the authority, copies of
5 all bylaws, rules and regulations, and amendments thereto, and
6 copies of the annual financial budgets.
7 (b) The board shall appoint in due time each year a firm of
8 independent certified public accountants as auditors who shall
9 examine the books, records and accounts of the authority for the
10 purpose of auditing and reporting upon its financial statement
11 for such year. The report of such auditors shall be appended to
12 such financial statement.
13 Section 32. Transfer of Records by Public Utility
14 Commission.--
15 In case the authority acquires the plant, equipment, property
16 and rights in property of any public utility used or useful in
17 the operation of a transportation system, the Pennsylvania
18 Public Utility Commission shall transfer and deliver to the
19 board, upon its demand, in writing, all books, papers and
20 records in control of said commission affecting such public
21 utility exclusively.
22 Section 33. Depreciation Reserve.--
23 (a) There shall be established and maintained a reserve for
24 depreciation reasonably estimated to be adequate to care for the
25 retirement (due to exhaustion, wear and tear and obsolescence)
26 of property at cost. The amount necessary to be credited to the
27 reserve each year for such purposes shall be charged to
28 operations.
29 (b) If, by any covenant of the authority, there is required
30 to be established out of revenues any reserve for debt
19750H1682B2118 - 56 -
1 retirement or property replacements or additions, the amount of
2 the annual provision credited to the reserve as required by this
3 section, shall be considered to have been made, to the extent
4 needed, for or toward the corresponding annual requirement of
5 any such covenant.
6 Section 34. Damage Reserve Fund.--
7 The board shall withdraw from the gross receipts of the
8 authority and charge to operating expenses such an amount of
9 money as, in the opinion of the board, shall be sufficient to
10 provide for the adjustment, defense and satisfaction of all
11 suits, claims, demands, rights and causes of action, and the
12 payment and satisfaction of all judgments entered against the
13 authority for damage caused by injury to or death of any person
14 and for damage to property resulting from the construction,
15 maintenance and operation of the transportation system, and the
16 board shall deposit such moneys in a fund to be known and
17 designated as damage reserve fund. The board shall use the
18 moneys in the damage reserve fund to pay all expenses and costs
19 arising from the adjustment, defense and satisfaction of all
20 suits, claims, demands, rights and causes of action, and the
21 payment and satisfaction of all judgments entered against the
22 authority for damages caused by injury to or death of any person
23 and for damage to property resulting from the construction,
24 maintenance and operation of the transportation system. At any
25 time, and from time to time, the board may obtain and maintain
26 insurance coverage or protection, partially or wholly, insuring
27 or indemnifying the authority against loss or liability on
28 account of injury to, or death of any person, and for damage to
29 property resulting from the construction, maintenance and
30 operation of the transportation system. The cost of obtaining
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1 and maintaining such insurance shall be paid out of the moneys
2 in the damage reserve fund. All moneys received from such
3 insurance coverage or protection shall be paid into the damage
4 reserve fund.
5 Section 35. Special Funds; Common Cash Account and Auxiliary
6 Short Term Investment Portfolio; Reserves.--
7 (a) The authority, pursuant to resolutions adopted from time
8 to time by the board, may establish and create such other and
9 additional special funds as may be found desirable by the board
10 and in and by such resolutions may provide for payments into all
11 special funds from specified sources with such preferences and
12 priorities as may be deemed advisable and may also by any such
13 resolutions provide for the custody, disbursement and
14 application of any moneys in any such special funds consistent
15 with the provisions of this act, and consistent with good
16 accounting practice with due reference to the uniform system of
17 accounts for transportation operations maintained by either the
18 Interstate Commerce Commission or the Pennsylvania Public
19 Utilities Commission.
20 (b) To the extent practicable the authority may establish a
21 common cash account and auxiliary short-term investment
22 portfolio as a depository for all cash of the general or special
23 funds. The interest of each fund therein shall be clearly
24 recorded and preserved at all times. There shall not be any
25 commingling of assets where prohibited by any covenant of the
26 authority.
27 (c) Nothing contained in this act shall be construed as to
28 prevent the prudent accumulation of reserve funds by the
29 authority.
30 Section 36. Limitation of Actions Against Authority.--
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1 Within six months from the date that any injury was received,
2 or any cause of action accrued, any person who is about to
3 commence any civil action in any court against the authority for
4 damages on account of any injury to his person shall file in the
5 office of the secretary of the board, and also in the office of
6 the chief counsel for the authority, either by himself, herself,
7 his or her agent, or attorney, a statement in writing, signed by
8 himself, herself,, his or her agent, or attorney, giving the
9 name of the person to whom the cause of action has accrued, the
10 name and residence of the person injured, the date, and about
11 the hour of the accident, the place or location where the
12 accident occurred, and the name and address of the attending
13 physician, if any. If the notice provided for by this section is
14 not filed as provided, any civil action commenced against the
15 authority more than six months after the date of injury, shall
16 be dismissed and the person to whom any such cause of action
17 accrued for any personal injury shall be forever barred from
18 further suing.
19 Section 37. Investigations and Subpoenas.--
20 (a) The board may investigate all means of transportation
21 and the management thereof, the enforcement of its resolutions,
22 rules and regulations, and the action, conduct, and efficiency
23 of all officers, agents and employees of the authority. In the
24 conduct of such investigations, the board may hold public
25 hearings on its own motion and shall do so on complaint or
26 petition of any municipality in the metropolitan area. Each
27 member of the board shall have power to administer oaths and the
28 secretary, by order of the board, shall issue subpoenas to
29 secure the attendance and testimony of witnesses and the
30 production of books and papers relevant to such investigations
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1 and to any hearing before the board or any member thereof, or
2 any officers' committee or employees' committee, appointed by
3 the board to hear any complaint of an officer or employee who
4 has been discharged or demoted.
5 (b) Any court of record of this Commonwealth, or any judge
6 thereof, either in term time or vacation, upon application of
7 the board or any member thereof may, in his discretion, compel
8 the attendance of witnesses, the production of books and papers,
9 and giving of testimony before the board or before any member
10 thereof, or any officers' committee or employees' committee,
11 appointed by the board by attachment for contempt or otherwise,
12 in the same manner as the production of evidence may be
13 compelled before said court.
14 Section 38. Aid from Federal Government.--
15 In addition to the powers conferred upon any authority by
16 other provisions of this act, such authority is empowered to
17 borrow money or accept money or accept grants or other financial
18 assistance from the Federal Government, for or in aid of its
19 operations. It is the purpose and intent of this act to
20 authorize the authority, and the authority is so authorized, to
21 do any and all things necessary or desirable to secure the
22 financial aid or cooperation of the Federal Government in any of
23 its operations. Such things may include without limiting the
24 generality of the foregoing: the power to change or revise
25 rates, fares and charges; to make relocation payments to
26 families, businesses and non-profit organizations; to provide an
27 area-wide transportation plan or program for the development of
28 a comprehensive and coordinated mass transportation system for
29 the metropolitan area; to carry out research, development and
30 demonstration projects; to provide a share of the cost of any
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1 project; all as may be required by any Federal law or by the
2 requirements of any Federal agency authorized to administer any
3 Federal program of aid to any mass transportation program.
4 Section 39. Exemption from Taxation.--
5 (a) The effectuation of the authorized purposes of any
6 authority created under this act shall and will be, in all
7 respects, for the benefit of the people of the Commonwealth, for
8 the increase of their commerce and prosperity and for the
9 improvement of their health and living conditions, and since
10 such authority will be performing essential governmental
11 functions in effectuating such purposes, it shall not be
12 required to pay any property taxes or assessments, of any kind
13 or nature whatsoever, now in existence or to be enacted in the
14 future, whether imposed by the Commonwealth or by any political
15 subdivision thereof, or by any other taxing authority, and the
16 bonds issued by such authority, their transfer, and the income
17 therefrom (including any profits made on the sale thereof),
18 shall at all times be free from taxation within the
19 Commonwealth.
20 Section 40. Limitation of Powers.--
21 The Commonwealth does hereby pledge to and agree with any
22 person, firm or corporation, or Federal agency subscribing to or
23 acquiring the bonds to be issued by any authority for the
24 construction, extension, improvement or enlargement of any
25 project or part thereof, that the Commonwealth will not limit or
26 alter the rights hereby vested in such authority until all bonds
27 at any time issued, together with the interest thereon, are
28 fully met and discharged. The Commonwealth does further pledge
29 to and agree with the United States and any other Federal agency
30 that, in the event that any Federal agency shall construct or
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1 contribute any funds for the construction, extension,
2 improvement or enlargement of any project or any portion
3 thereof, the Commonwealth will not alter or limit the rights and
4 powers of the authority in any manner which would be
5 inconsistent with the continued maintenance and operation of the
6 project, or the improvement thereof, or which would be
7 inconsistent with the due performance of any agreements between
8 the authority and any such Federal agency, and the authority
9 shall continue to have and may exercise all powers herein
10 granted, so long as the same shall be necessary or desirable for
11 the carrying out of the purposes of this act and the purposes of
12 the United States in the construction or improvement or
13 enlargement of the project or such portion thereof.
14 Section 41. Repeals.--All acts or parts of acts, whether
15 general, special or local, are hereby repealed in so far as they
16 are inconsistent herewith.
17 Section 42. This act shall take effect in 60 days.
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