SENATE AMENDED
        PRIOR PRINTER'S NOS. 957, 1975                PRINTER'S NO. 1976

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 878 Session of 1993


        INTRODUCED BY McCALL, DeWEESE, CESSAR, LINTON, MIHALICH, TRELLO,
           COY, B. SMITH, DeLUCA, PISTELLA, DALEY, FAJT, PRESTON, STISH,
           MELIO, ROONEY, BELFANTI, CORNELL, OLASZ, WOGAN, HARLEY,
           SERAFINI, CLARK, BELARDI KASUNIC, BATTISTO, CIVERA AND
           TOMLINSON, MARCH 24, 1993

        SENATOR LINCOLN, RULES AND EXECUTIVE NOMINATIONS, IN SENATE, RE-
           REPORTED AS AMENDED, MAY 27, 1993

                                     AN ACT

     1  Amending Title TITLES 74 (TRANSPORTATION) AND 75 (Vehicles) of    <--
     2     the Pennsylvania Consolidated Statutes, FURTHER PROVIDING FOR  <--
     3     THE DISTRIBUTION OF ASSET MAINTENANCE FUNDS; AUTHORIZING THE
     4     CREATION OF A TRANSPORTATION AUTHORITY TO FUNCTION IN EACH
     5     METROPOLITAN AREA CONSISTING OF ANY COUNTY OF THE FIRST CLASS
     6     AND ALL NEARBY COUNTIES WITHIN A RADIUS OF 20 MILES OF ANY
     7     SUCH FIRST CLASS COUNTY, AS A BODY CORPORATE AND POLITIC AND
     8     AS AN AGENCY AND INSTRUMENTALITY OF THE COMMONWEALTH FOR THE
     9     PURPOSE OF ESTABLISHING AN INTEGRATED MASS TRANSPORTATION
    10     SYSTEM WITH ALL PERTINENT POWERS, INCLUDING, BUT NOT LIMITED
    11     TO, LEASING, ACQUIRING, OWNING, OPERATING AND MAINTAINING A
    12     SYSTEM FOR OR OTHERWISE PROVIDING FOR THE TRANSPORTATION OF
    13     PERSONS; AUTHORIZING THE BORROWING OF MONEY AND ISSUANCE OF
    14     BONDS THEREFOR AND CONFERRING THE RIGHT OF EMINENT DOMAIN ON
    15     SUCH AN AUTHORITY; ALTERING THE JURISDICTION OF THE
    16     PENNSYLVANIA PUBLIC UTILITY COMMISSION; AUTHORIZING THE
    17     ACCEPTANCE OF GRANTS FROM FEDERAL, STATE AND LOCAL
    18     GOVERNMENTS; LIMITING ACTIONS AGAINST SUCH AN AUTHORITY AND
    19     EXEMPTING IT FROM TAXATION; AUTHORIZING COUNTIES AND
    20     MUNICIPALITIES TO ENTER INTO COMPACTS FOR THE FINANCING OF
    21     EACH AUTHORITY AND TO MAKE APPROPRIATIONS IN ACCORDANCE WITH
    22     SUCH COMPACTS; CREATING A CITIZEN ADVISORY COMMITTEE;
    23     CONFERRING EXCLUSIVE JURISDICTION UPON CERTAIN COURTS WITH
    24     RESPECT TO MATTERS RELATING TO SUCH AUTHORITY AND EMPOWERING
    25     EACH AUTHORITY TO FUNCTION OUTSIDE THE METROPOLITAN AREA
    26     UNDER CERTAIN TERMS AND CONDITIONS; CONTINUING THE EXISTENCE
    27     OF A PRESENTLY EXISTING TRANSPORTATION AUTHORITY; providing
    28     for suspensions for offenses involving controlled substances,
    29     for certain out-of-State documentations and, for reports by    <--


     1     courts AND FOR THE ALLOCATION OF OIL COMPANY FRANCHISE TAX     <--
     2     REVENUES TO THE PENNSYLVANIA TURNPIKE COMMISSION; and making
     3     a repeal.

     4     THE GENERAL ASSEMBLY FINDS AND DECLARES AS FOLLOWS:            <--
     5     (A)  FINDINGS.--
     6         (1)  THERE EXISTS IN THE URBAN AND SUBURBAN COMMUNITIES
     7     IN METROPOLITAN AREAS, TRAFFIC CONGESTION AND SERIOUS MASS
     8     TRANSPORTATION PROBLEMS BECAUSE OF UNDERDEVELOPED MASS
     9     TRANSPORTATION FACILITIES RESULTING IN INADEQUATE OR
    10     OVERCROWDED HIGH-COST CONDITIONS ON COMMONWEALTH HIGHWAYS AND
    11     EXISTING MASS TRANSPORTATION FACILITIES.
    12         (2)  SUCH CONDITIONS OR A COMBINATION OF SOME OR ALL OF
    13     THEM HAVE MADE AND WILL CONTINUE TO RESULT IN MAKING SUCH
    14     COMMUNITIES ECONOMIC AND SOCIAL LIABILITIES HARMFUL TO THE
    15     SOCIAL AND ECONOMIC WELL-BEING OF THE ENTIRE AREA,
    16     DEPRECIATING VALUES THEREIN, REDUCING THE TAX REVENUES,
    17     MAKING THE METROPOLITAN AREAS AND THEIR CONSTITUENT
    18     COMMUNITIES LESS DESIRABLE AREAS IN WHICH TO LIVE AND WORK
    19     AND THEREBY DEPRECIATING FURTHER THE GENERAL COMMUNITY WIDE
    20     VALUES.
    21         (3)  THE FOREGOING CONDITIONS CANNOT BE EFFECTIVELY DEALT
    22     WITH BY PRIVATE ENTERPRISE UNDER EXISTING LAW WITHOUT THE
    23     ADDITIONAL AIDS GRANTED IN THIS ACT AND ARE BEYOND REMEDY OR
    24     CONTROL BY GOVERNMENTAL REGULATORY PROCESSES.
    25         (4)  THE SOUND PLANNING AND DEVELOPMENT OF METROPOLITAN
    26     MASS TRANSPORTATION FACILITIES IN ACCORDANCE WITH SOUND AND
    27     APPROVED PLANS FOR THEIR PROMOTION, DEVELOPMENT AND GROWTH
    28     WILL PROMOTE THE PUBLIC HEALTH, SAFETY, CONVENIENCE AND
    29     WELFARE, AND THE PUBLIC ACQUISITION OF EXISTING MASS
    30     TRANSPORTATION FACILITIES IN ACCORDANCE WITH THE SOUND PLANS
    31     FOR THEIR REDEVELOPMENT AND PROMOTION WILL PROMOTE THE PUBLIC
    19930H0878B1976                  - 2 -

     1     HEALTH, SAFETY, CONVENIENCE AND WELFARE.
     2         (5)  THE WELL-BEING AND ECONOMIC HEALTH OF THE COUNTIES
     3     AND OTHER COMMUNITIES IN THE METROPOLITAN AREAS REQUIRE
     4     INTEGRATED SYSTEMS OF MASS PASSENGER TRANSPORTATION.
     5         (6)  IT IS DESIRABLE THAT THE PUBLIC TRANSPORTATION
     6     SYSTEMS IN THE METROPOLITAN AREAS BE IMPROVED, EXTENDED AND
     7     SUPPLEMENTED BY THE CREATION OF AUTHORITIES AS PROVIDED IN
     8     THIS ACT.
     9         (7)  THE ESTABLISHMENT OF METROPOLITAN TRANSPORTATION
    10     AUTHORITIES AS AUTHORITIES OF THE COMMONWEALTH AND THE
    11     CONTINUANCE OF THE EXISTING METROPOLITAN TRANSPORTATION
    12     AUTHORITIES WILL PROMOTE THE PUBLIC SAFETY, CONVENIENCE AND
    13     WELFARE.
    14         (8)  IT IS INTENDED THAT METROPOLITAN TRANSPORTATION
    15     AUTHORITIES COOPERATE WITH OR ACQUIRE EXISTING TRANSPORTATION
    16     OPERATORS OR FACILITIES SO THAT PRIVATE ENTERPRISE AND
    17     GOVERNMENT MAY MUTUALLY PROVIDE ADEQUATE TRANSIT FACILITIES
    18     FOR THE CONVENIENCE OF THE PUBLIC.
    19         (9)  IT IS INTENDED THAT ANY AUTHORITY CREATED OR
    20     CONTINUED UNDER THIS ACT WILL COOPERATE WITH ALL
    21     MUNICIPALITIES AND OTHER PUBLIC BODIES IN WHOSE TERRITORIES
    22     IT OPERATES SO THAT THE TRANSPORTATION SYSTEM MAY BEST SERVE
    23     THE INTERESTS OF THE RESIDENTS THEREOF.
    24         (10)  IT IS INTENDED THAT THE OPERATION OF A
    25     TRANSPORTATION SYSTEM WILL ENHANCE THE QUALITY OF THE
    26     ENVIRONMENT OF THE METROPOLITAN AREA BY RELIEVING HIGHWAY
    27     CONGESTION AND PROVIDING FOR MULTIPASSENGER TRAVELING
    28     PATTERNS.
    29         (11)  IT IS INTENDED THAT RESIDENTS OF THE METROPOLITAN
    30     AREA MAY BE PROVIDED WITH ACCESS TO TRANSPORTATION FACILITIES
    19930H0878B1976                  - 3 -

     1     AND THE ABILITY TO TRAVEL WITHIN THE METROPOLITAN AREA
     2     REGARDLESS OF DISABILITY OR HANDICAP.
     3     (B)  DECLARATION.--THEREFORE, IT IS HEREBY DECLARED TO BE THE
     4  POLICY OF THE COMMONWEALTH TO PROMOTE THE SAFETY AND WELFARE OF
     5  ITS INHABITANTS BY AUTHORIZING THE CREATION OR CONTINUATION OF A
     6  BODY CORPORATE AND POLITIC FOR EACH METROPOLITAN AREA, TO BE
     7  KNOWN AS THE TRANSPORTATION AUTHORITY OF SUCH AREA, WHICH SHALL
     8  EXIST AND OPERATE FOR THE PURPOSES CONTAINED IN THIS CHAPTER AS
     9  AN AUTHORITY OF THE COMMONWEALTH. THESE PURPOSES ARE HEREBY
    10  DECLARED TO BE PUBLIC USES FOR WHICH PUBLIC MONEY MAY BE SPENT
    11  AND PRIVATE PROPERTY MAY BE ACQUIRED BY THE EXERCISE OF THE
    12  POWER OF EMINENT DOMAIN.
    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     Section 1.  Sections 1532 and 1550 of Title 75 of the          <--
    16  Pennsylvania Consolidated Statutes are amended by adding
    17  subsections to read:
    18     SECTION 1.  SECTION 1311 OF TITLE 74 OF THE PENNSYLVANIA       <--
    19  CONSOLIDATED STATUTES IS AMENDED BY ADDING A SUBSECTION TO READ:
    20  § 1311.  USE OF FUNDS DISTRIBUTED.
    21     * * *
    22     (J)  LIMIT ON CERTAIN AMOUNTS EXPENDED.--NOTWITHSTANDING ANY
    23  LAW TO THE CONTRARY, LOCAL TRANSPORTATION ORGANIZATIONS AND
    24  TRANSPORTATION COMPANIES ARE AUTHORIZED TO EXPEND MONEYS
    25  DISTRIBUTED PURSUANT TO SECTION 1310 FOR ASSET MAINTENANCE COSTS
    26  IN AN AMOUNT NOT TO EXCEED THE GREATER OF:
    27         (1)  THE MAXIMUM AMOUNT OF ASSET MAINTENANCE EXPENDITURES
    28     WHICH COULD HAVE BEEN APPROVED BY THE DEPARTMENT FOR
    29     EXPENDITURE BY THAT LOCAL TRANSPORTATION ORGANIZATION OR
    30     TRANSPORTATION COMPANY FOR THE 1991-1992 FISCAL YEAR PURSUANT
    19930H0878B1976                  - 4 -

     1     TO SECTION 17(A) OF THE ACT OF AUGUST 5, 1991 (P.L.238,
     2     NO.26), ENTITLED "AN ACT AMENDING TITLES 74 (TRANSPORTATION)
     3     AND 75 (VEHICLES) OF THE PENNSYLVANIA CONSOLIDATED STATUTES,
     4     CODIFYING PROVISIONS RELATING TO PUBLIC TRANSPORTATION;
     5     IMPOSING CERTAIN FEES AND TAXES; FURTHER PROVIDING FOR
     6     CERTAIN PENNSYLVANIA TURNPIKE PROJECTS; DEFINING 'FARM
     7     EQUIPMENT'; FURTHER PROVIDING FOR THE RESPONSIBILITIES OF
     8     VEHICLE TRANSFEREES, FOR EXEMPTIONS FROM REGISTRATION AND
     9     CERTIFICATES OF TITLE AND FOR THE USE OF DEALER PLATES,
    10     MULTIPURPOSE DEALER PLATES AND FARM EQUIPMENT PLATES; FURTHER
    11     PROVIDING FOR FUNERAL PROCESSIONS; FURTHER PROVIDING FOR A
    12     RESTRICTED RECEIPTS FUND AND FOR REGISTRATION FOR SNOWMOBILES
    13     AND ATV'S; ESTABLISHING THE SNOWMOBILE TRAIL ADVISORY
    14     COMMITTEE; FURTHER PROVIDING FOR THE HIGHWAY MAINTENANCE AND
    15     CONSTRUCTION TAX; AND MAKING REPEALS," BASED UPON A
    16     PROJECTION OF $200,000,000 IN TOTAL DEDICATED CAPITAL
    17     ASSISTANCE FUNDS; OR
    18         (2)  THE AMOUNT PERMITTED TO BE EXPENDED FOR SUCH
    19     PURPOSES UNDER SUBSECTION (E).
    20     SECTION 2.  SECTIONS 1312(C) AND 1313(B) OF TITLE 74 ARE       <--
    21  AMENDED TO READ:
    22  § 1312.  COMMUNITY TRANSPORTATION PROGRAMS.
    23     * * *
    24     (C)  [NEXT FISCAL YEAR] AVAILABILITY OF FUNDS.--FUNDS NOT
    25  EXPENDED UNDER THIS SECTION IN THE FISCAL YEAR IN WHICH THEY
    26  WERE MADE AVAILABLE SHALL NOT LAPSE AND SHALL BE AVAILABLE FOR
    27  USE PURSUANT TO THIS SECTION IN THE NEXT [FISCAL YEAR]
    28  SUCCEEDING FISCAL YEARS.
    29  § 1313.  ADDITIONAL PROGRAMS.
    30     * * *
    19930H0878B1976                  - 5 -

     1     (B)  [NEXT FISCAL YEAR] AVAILABILITY OF FUNDS.--FUNDS NOT
     2  EXPENDED UNDER THIS SECTION IN THE FISCAL YEAR IN WHICH THEY
     3  WERE MADE AVAILABLE SHALL NOT LAPSE AND SHALL BE AVAILABLE FOR
     4  USE PURSUANT TO THIS SECTION IN THE NEXT [FISCAL YEAR]
     5  SUCCEEDING FISCAL YEARS.
     6     SECTION 2 3.  CHAPTER 15 OF TITLE 74 IS REPEALED.              <--
     7     SECTION 3 4.  TITLE 74 IS AMENDED BY ADDING A CHAPTER TO       <--
     8  READ:
     9                             CHAPTER 17
    10              METROPOLITAN TRANSPORTATION AUTHORITIES
    11  SUBCHAPTER
    12    A.  GENERAL PROVISIONS
    13    B.  AUTHORIZATION AND ORGANIZATION OF AUTHORITIES
    14    C.  POWERS AND DUTIES
    15    D.  FUNDS AND BONDS OF AUTHORITIES
    16    E.  MISCELLANEOUS PROVISIONS
    17                            SUBCHAPTER A
    18                         GENERAL PROVISIONS
    19  SEC.
    20  1701.  DEFINITIONS.
    21  § 1701.  DEFINITIONS.
    22     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
    23  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    24  CONTEXT CLEARLY INDICATES OTHERWISE:
    25     "AUTHORITY."  ANY BODY CORPORATE AND POLITIC CREATED UNDER
    26  THIS CHAPTER OR CREATED UNDER THE FORMER PROVISIONS OF ARTICLE
    27  III OF THE ACT OF JANUARY 22, 1968 (P.L.42, NO.8), KNOWN AS THE
    28  PENNSYLVANIA URBAN MASS TRANSPORTATION LAW, OR THE FORMER
    29  PROVISIONS OF CHAPTER 15 (RELATING TO METROPOLITAN
    30  TRANSPORTATION AUTHORITIES) AND CONTINUED UNDER THIS CHAPTER.
    19930H0878B1976                  - 6 -

     1     "BOARD."  THE GOVERNING AND POLICYMAKING BODY OF AN
     2  AUTHORITY.
     3     "BONDS."  NOTES, BONDS, BOND ANTICIPATION NOTES, REFUNDING
     4  NOTES AND BONDS, INTERIM CERTIFICATES, DEBENTURES AND OTHER
     5  EVIDENCES OF INDEBTEDNESS OR OBLIGATIONS WHICH AN AUTHORITY IS
     6  AUTHORIZED TO ISSUE UNDER THIS CHAPTER.
     7     "CASH FLOW DEFICIT."  A CASH DEFICIT OCCURRING SOLELY BECAUSE
     8  REVENUES AND EXPENDITURES, EVEN WHEN IN BALANCE ON A FISCAL YEAR
     9  BASIS OR WITH RESPECT TO ANY OTHER PERIOD OF COMPUTATION, ARE
    10  NOT RECEIVED AND DISBURSED AT EQUIVALENT RATES THROUGHOUT THE
    11  FISCAL YEAR OR OTHER PERIOD OF COMPUTATION.
    12     "COMPREHENSIVE TRANSPORTATION PLAN."  A COMPREHENSIVE
    13  STATEMENT, CONSISTING OF MAPS, CHARTS AND TEXTUAL MATTER, OF AN
    14  AUTHORITY'S POLICIES, STRATEGIES AND OBJECTIVES FOR THE
    15  DEVELOPMENT OF THE TRANSPORTATION SYSTEM CONSISTENT WITH THE
    16  LEGISLATIVE FINDINGS AND DECLARED POLICY OF THIS CHAPTER AND THE
    17  RIGHTS, POWERS AND DUTIES OF THE AUTHORITY.
    18     "DEPARTMENT."  THE DEPARTMENT OF TRANSPORTATION OF THE
    19  COMMONWEALTH.
    20     "FEDERAL AGENCY."  THE FEDERAL GOVERNMENT, THE PRESIDENT OF
    21  THE UNITED STATES AND ANY DEPARTMENT OR CORPORATION, AGENCY OR
    22  INSTRUMENTALITY, HERETOFORE OR HEREAFTER CREATED, DESIGNATED OR
    23  ESTABLISHED BY THE FEDERAL GOVERNMENT.
    24     "GOVERNMENT AGENCY."  THE GOVERNOR, DEPARTMENTS, BOARDS,
    25  COMMISSIONS, AUTHORITIES AND OTHER OFFICERS AND AGENCIES OF THIS
    26  COMMONWEALTH, INCLUDING, BUT NOT LIMITED TO, THOSE WHICH ARE NOT
    27  SUBJECT TO THE POLICY SUPERVISION AND CONTROL OF THE GOVERNOR,
    28  ANY POLITICAL SUBDIVISION, MUNICIPALITY, MUNICIPAL OR OTHER
    29  LOCAL AUTHORITY AND ANY OFFICER OR AGENCY OF ANY SUCH POLITICAL
    30  SUBDIVISION OR LOCAL AUTHORITY. THE TERM DOES NOT INCLUDE ANY
    19930H0878B1976                  - 7 -

     1  COURT OR OTHER OFFICER OR AGENCY OF THE UNIFIED JUDICIAL SYSTEM
     2  OR THE GENERAL ASSEMBLY OR ITS OFFICERS AND AGENCIES.
     3     "GOVERNMENT OBLIGATIONS."
     4         (1)  DIRECT OBLIGATIONS OF, OR OBLIGATIONS THE PRINCIPAL
     5     OF AND INTEREST ON WHICH ARE UNCONDITIONALLY GUARANTEED BY,
     6     THE FEDERAL GOVERNMENT, INCLUDING, BUT NOT LIMITED TO,
     7     EVIDENCES OF A DIRECT OWNERSHIP INTEREST IN FUTURE INTEREST
     8     OR PRINCIPAL PAYMENTS ON OBLIGATIONS ISSUED OR GUARANTEED BY
     9     THE FEDERAL GOVERNMENT, WHICH OBLIGATIONS ARE HELD IN A
    10     CUSTODY ACCOUNT BY A CUSTODIAN UNDER THE TERMS OF A CUSTODY
    11     AGREEMENT.
    12         (2)  THE TERM INCLUDES OBLIGATIONS ISSUED BY ANY STATE OF
    13     THE UNITED STATES OR ANY POLITICAL SUBDIVISION, PUBLIC
    14     INSTRUMENTALITY OR PUBLIC AUTHORITY OF ANY STATE OF THE
    15     UNITED STATES, PROVISION FOR THE FULL AND TIMELY PAYMENT OF
    16     THE PRINCIPAL OR PREMIUM OF AND INTEREST ON WHICH SHALL HAVE
    17     BEEN MADE BY DEPOSIT WITH A TRUSTEE OR ESCROW AGENT, UNDER AN
    18     IRREVOCABLE SECURITY AGREEMENT, OF OBLIGATIONS DESCRIBED IN
    19     PARAGRAPH (1).
    20     "LEGISLATIVE BODY."  THE TERM SHALL MEAN, IN COUNTIES OF THE
    21  FIRST CLASS, THE CITY COUNCIL, IN THE OTHER COUNTIES, THE BOARD
    22  OF COUNTY COMMISSIONERS OR THE COUNTY COUNCIL AND, IN THE OTHER
    23  MUNICIPALITIES, THAT BODY AUTHORIZED BY LAW TO ENACT ORDINANCES.
    24     "MAJORITY."  ANY WHOLE NUMBER CONSTITUTING MORE THAN HALF OF
    25  THE TOTAL NUMBER.
    26     "MASTER TRUST INDENTURE."  A TRUST INDENTURE, TRUST AGREEMENT
    27  OR DEED OF TRUST PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS
    28  GUARANTEED ON A JOINT AND SEVERAL BASIS BY A GROUP OF OBLIGATED
    29  ISSUERS.
    30     "MAYOR."  THE CHIEF EXECUTIVE OFFICER OF ANY FIRST CLASS CITY
    19930H0878B1976                  - 8 -

     1  IN ANY FIRST CLASS COUNTY.
     2     "METROPOLITAN AREA."  ALL OF THE TERRITORY WITHIN THE
     3  BOUNDARIES OF ANY COUNTY OF THE FIRST CLASS AND ALL OTHER
     4  COUNTIES LOCATED IN WHOLE OR IN PART WITHIN 20 MILES OF THE
     5  FIRST CLASS COUNTY.
     6     "MUNICIPALITY."  ANY CITY, COUNTY, BOROUGH, INCORPORATED
     7  TOWN, TOWNSHIP OR OTHER POLITICAL SUBDIVISION. THE TERMS
     8  "MUNICIPALITY" AND "POLITICAL SUBDIVISION" SHALL HAVE THE SAME
     9  MEANING WHEN USED IN THIS CHAPTER.
    10     "OBLIGEE OF AN AUTHORITY."  ANY HOLDER OR OWNER OF ANY BOND
    11  OF AN AUTHORITY OR ANY TRUSTEE OR OTHER FIDUCIARY FOR ANY SUCH
    12  HOLDER OR ANY PROVIDER OF A LETTER OF CREDIT, POLICY OF
    13  MUNICIPAL BOND INSURANCE OR OTHER CREDIT ENHANCEMENT OR
    14  LIQUIDITY FACILITY FOR BONDS OF AN AUTHORITY.
    15     "PERSON."  THE TERM SHALL MEAN AND INCLUDE CORPORATIONS,
    16  PARTNERSHIPS, ASSOCIATIONS, FEDERAL AGENCIES, THE COMMONWEALTH,
    17  GOVERNMENT AGENCIES AND OTHER ENTITIES, AS WELL AS NATURAL
    18  PERSONS.
    19     "POLITICAL SUBDIVISION."  ANY COUNTY, CITY, BOROUGH,
    20  INCORPORATED TOWN, TOWNSHIP, SCHOOL DISTRICT, VOCATIONAL SCHOOL
    21  DISTRICT AND COUNTY INSTITUTION DISTRICT.
    22     "PROJECT."  ANY STRUCTURE, FACILITY OR UNDERTAKING WHICH AN
    23  AUTHORITY IS AUTHORIZED TO ACQUIRE, CONSTRUCT, IMPROVE, LEASE,
    24  MAINTAIN, OPERATE, CONTRACT FOR OR OTHERWISE FUNCTION WITH
    25  RESPECT TO, UNDER THE PROVISIONS OF THIS OR ANY OTHER ACT,
    26  INCLUDING, BUT NOT LIMITED TO, ALL WORK AND MATERIAL INCIDENTAL
    27  THERETO AND ALL COSTS THEREOF, INCLUDING ALL AMOUNTS NECESSARY
    28  TO PLACE THE PROJECT INTO OPERATION.
    29     "PUBLIC OFFICIAL."  AN ELECTED OFFICIAL IN THE EXECUTIVE,
    30  LEGISLATIVE OR JUDICIAL BRANCH OF THE COMMONWEALTH OR ANY
    19930H0878B1976                  - 9 -

     1  POLITICAL SUBDIVISION THEREOF, PROVIDED THAT IT SHALL NOT
     2  INCLUDE MEMBERS OF ADVISORY BOARDS THAT HAVE NO AUTHORITY TO
     3  EXPEND PUBLIC FUNDS OTHER THAN REIMBURSEMENT FOR PERSONAL
     4  EXPENSES OR TO OTHERWISE EXERCISE THE POWER OF THE COMMONWEALTH
     5  OR ANY POLITICAL SUBDIVISION THEREOF.
     6     "QUALIFIED FINANCIAL INSTITUTION."  A BANK, BANK AND TRUST
     7  COMPANY, TRUST COMPANY, NATIONAL BANKING ASSOCIATION, INSURANCE
     8  COMPANY OR OTHER FINANCIAL SERVICES COMPANY WHOSE UNSECURED
     9  LONG-TERM DEBT OBLIGATIONS, IN THE CASE OF A BANK, TRUST
    10  COMPANY, NATIONAL BANKING ASSOCIATION OR OTHER FINANCIAL
    11  SERVICES COMPANY, OR WHOSE CLAIMS PAYING ABILITIES, IN THE CASE
    12  OF AN INSURANCE COMPANY, ARE RATED IN ANY OF THE THREE HIGHEST
    13  RATING CATEGORIES, WITHOUT REFERENCE TO SUBCATEGORIES, BY A
    14  RATING AGENCY. FOR PURPOSES OF THIS DEFINITION, THE TERM
    15  "FINANCIAL SERVICES COMPANY" SHALL INCLUDE ANY INVESTMENT
    16  BANKING FIRM OR ANY AFFILIATE OR DIVISION THEREOF WHICH MAY BE
    17  LEGALLY AUTHORIZED TO ENTER INTO THE TRANSACTIONS DESCRIBED IN
    18  THIS CHAPTER PERTAINING, APPLICABLE OR LIMITED TO A QUALIFIED
    19  FINANCIAL INSTITUTION.
    20     "QUALIFIED MAJORITY."  A MAJORITY OF THE GOVERNING BODY OF AN
    21  AUTHORITY WHICH INCLUDES FOUR OF THE FIVE MEMBERS APPOINTED
    22  UNDER SECTION 1713(A)(1) AND (2) (RELATING TO APPOINTMENT OF
    23  BOARD MEMBERS).
    24     "RATING AGENCY."
    25         (1)  THE TERM INCLUDES THE FOLLOWING:
    26             (I)  STANDARD & POOR'S CORPORATION AND ANY SUCCESSOR
    27         THERETO.
    28             (II)  MOODY'S INVESTORS SERVICE AND ANY SUCCESSOR
    29         THERETO.
    30             (III)  FITCH INVESTORS SERVICE, INC., AND ANY
    19930H0878B1976                 - 10 -

     1         SUCCESSOR THERETO.
     2         (2)  IF THE RATING AGENCIES CITED IN PARAGRAPH (1) SHALL
     3     NO LONGER PERFORM THE FUNCTIONS OF A SECURITIES RATING
     4     SERVICE, THE TERM SHALL MEAN ANY OTHER NATIONALLY RECOGNIZED
     5     RATING SERVICE OR SERVICES.
     6     "REAL ESTATE-RELATED MATTER."  A TRANSACTION OR AGREEMENT
     7  WHICH INVOLVES ANY FEE, LEASEHOLD OR OTHER ESTATE OR INTEREST
     8  IN, OVER OR UNDER REAL PROPERTY IN WHICH THE AUTHORITY HAS AN
     9  INTEREST OR WISHES TO ACQUIRE AN INTEREST, INCLUDING, BUT NOT
    10  LIMITED TO, STRUCTURES, FIXTURES AND OTHER IMPROVEMENTS AND
    11  INTERESTS WHICH BY CUSTOM, USAGE OR LAW PASS WITH THE CONVEYANCE
    12  OF REAL PROPERTY THOUGH NOT DESCRIBED IN THE CONTRACT OF SALE OR
    13  INSTRUMENT OF CONVEYANCE. THE TERM INCLUDES PARCELS WITH OR
    14  WITHOUT UPPER OR LOWER BOUNDARIES AND SPACES THAT MAY BE FILLED
    15  WITH AIR OR WATER AND INCLUDES ANY CONTRACT, JOINT VENTURE,
    16  MANAGEMENT OR BROKERAGE AGREEMENT WHICH IS RELATED DIRECTLY OR
    17  INDIRECTLY THERETO.
    18     "SUBSTANTIAL CHANGE."  ANY CHANGE IN SYSTEM OPERATIONS
    19  DETERMINED TO BE SUBSTANTIAL BY THE BOARD.
    20     "TRANSPORTATION SYSTEM."  ALL PROPERTY, REAL AND PERSONAL,
    21  USEFUL FOR THE TRANSPORTATION OF PASSENGERS FOR HIRE, INCLUDING,
    22  BUT NOT LIMITED TO, POWER PLANTS, SUBSTATIONS, TERMINALS,
    23  GARAGES, BRIDGES, TUNNELS, SUBWAYS, ELEVATED LINES, MONORAILS,
    24  RAILROAD MOTIVE POWER, TRAINS, RAILROAD PASSENGER CARS AND
    25  EQUIPMENT, BELT CONVEYORS, INCLINES, CAR BARNS, STREET CARS,
    26  BUSES, RAILS, LINES, POLES, WIRES, STATIONS AND OFF-STREET
    27  PARKING FACILITIES RIGHTS-OF-WAY, AS WELL AS THE FRANCHISES,
    28  RIGHTS AND LICENSES THEREFOR, INCLUDING RIGHTS TO PROVIDE GROUP,
    29  PARTY AND PARATRANSIT SERVICES. THE TERM SHALL NOT INCLUDE A
    30  TAXICAB.
    19930H0878B1976                 - 11 -

     1                            SUBCHAPTER B
     2           AUTHORIZATION AND ORGANIZATION OF AUTHORITIES
     3  SEC.
     4  1711.  CREATION OF METROPOLITAN TRANSPORTATION AUTHORITIES.
     5  1712.  GOVERNING AND POLICYMAKING BODY.
     6  1713.  APPOINTMENT OF BOARD MEMBERS.
     7  1714.  RESIGNATION AND VACANCIES.
     8  1715.  MEETINGS, QUORUM, OFFICERS AND RECORDS.
     9  1716.  SECRETARY, OATH, BOND.
    10  1717.  CONTROLLER.
    11  1718.  SIGNATURES.
    12  1719.  GENERAL MANAGER.
    13  1720.  TREASURER.
    14  1721.  COUNSEL TO THE BOARD.
    15  1722.  LEGAL DIVISION AND GENERAL COUNSEL.
    16  1723.  OTHER EMPLOYEES.
    17  1724.  PERSONNEL MATTERS.
    18  1725.  PUBLIC HEARINGS.
    19  1726.  CITIZEN ADVISORY COMMITTEE.
    20  1727.  INVESTIGATIONS AND SUBPOENAS.
    21  1728.  CONFLICTS OF INTEREST.
    22  § 1711.  CREATION OF METROPOLITAN TRANSPORTATION AUTHORITIES.
    23     (A)  CREATION AND PURPOSE.--THERE IS HEREBY AUTHORIZED THE
    24  CREATION OF A SEPARATE BODY CORPORATE AND POLITIC IN EACH
    25  METROPOLITAN AREA, TO BE KNOWN AS THE TRANSPORTATION AUTHORITY
    26  OF THAT METROPOLITAN AREA, EXTENDING TO AND INCLUDING ALL OF THE
    27  TERRITORY IN THE METROPOLITAN AREA. AN AUTHORITY SHALL IN NO WAY
    28  BE DEEMED TO BE AN INSTRUMENTALITY OF ANY CITY OR COUNTY OR
    29  OTHER MUNICIPALITY OR ENGAGED IN THE PERFORMANCE OF A MUNICIPAL
    30  FUNCTION, BUT SHALL EXERCISE THE PUBLIC POWERS OF THE
    19930H0878B1976                 - 12 -

     1  COMMONWEALTH AS AN AGENCY AND INSTRUMENTALITY THEREOF. AN
     2  AUTHORITY SHALL EXIST FOR THE PURPOSE OF PLANNING, ACQUIRING,
     3  HOLDING, CONSTRUCTING, IMPROVING, MAINTAINING, OPERATING,
     4  LEASING, EITHER AS LESSOR OR LESSEE, AND OTHERWISE FUNCTIONING
     5  WITH RESPECT TO A TRANSPORTATION SYSTEM IN THE METROPOLITAN AREA
     6  AND OUTSIDE OF SUCH AREA, WHETHER WITHIN OR BEYOND THE
     7  BOUNDARIES OF THIS COMMONWEALTH, TO THE EXTENT NECESSARY FOR THE
     8  OPERATION OF AN INTEGRATED TRANSPORTATION SYSTEM AND FOR THE
     9  PROVISION OF ALL GROUP AND PARTY SERVICES WHICH CAN BE PROVIDED
    10  BY THE EXISTING TRANSPORTATION SYSTEM OR TRANSPORTATION SYSTEMS
    11  SUBJECT TO ACQUISITION UNDER THIS CHAPTER. ALL SERVICES RENDERED
    12  BY AN AUTHORITY OUTSIDE THE METROPOLITAN AREA SHALL BE PURSUANT
    13  TO CERTIFICATES OF PUBLIC CONVENIENCE OR OTHER APPROPRIATE
    14  AUTHORIZATION ISSUED TO IT BY THE PENNSYLVANIA PUBLIC UTILITY
    15  COMMISSION OR OTHER APPROPRIATE REGULATORY AGENCY OF THE FEDERAL
    16  GOVERNMENT OR ANY STATE. EXCEPT AS PROVIDED IN SUBSECTION (C),
    17  AN AUTHORITY SHALL TRANSACT NO BUSINESS OR OTHERWISE BECOME
    18  OPERATIVE UNTIL AND UNLESS A MAJORITY OF ITS BOARD SHALL HAVE
    19  BEEN QUALIFIED IN ACCORDANCE WITH THIS SUBCHAPTER.
    20     (B)  CERTIFICATE OF INCORPORATION.--
    21         (1)  THE CERTIFICATION BY THE APPOINTING POWER OF EACH
    22     BOARD MEMBER, AND THE CONSTITUTIONAL OATH OF OFFICE
    23     SUBSCRIBED BY EACH MEMBER, SHALL BE FILED WITH THE DEPARTMENT
    24     OF STATE, AND, EXCEPT AS PROVIDED IN SUBSECTION (C), UPON THE
    25     RECEIPT OF INITIAL CERTIFICATIONS AND RESPECTIVE OATHS OF A
    26     MAJORITY OF THE TOTAL NUMBER OF BOARD MEMBERS APPROPRIATE TO
    27     ANY METROPOLITAN AREA, THE SECRETARY OF THE COMMONWEALTH
    28     SHALL ISSUE A CERTIFICATE OF INCORPORATION. THIS CERTIFICATE
    29     SHALL REFER TO THAT AUTHORITY BY THE NAME WHICH SHALL BE
    30     DESIGNATED BY THE BOARD MEMBERS.
    19930H0878B1976                 - 13 -

     1         (2)  IN ANY SUIT, ACTION OR PROCEEDING INVOLVING OR
     2     RELATING TO THE VALIDITY OR ENFORCEMENT OF ANY CONTRACT OR
     3     ACT OF AN AUTHORITY, A COPY OF THE CERTIFICATE OF
     4     INCORPORATION, DULY CERTIFIED BY THE DEPARTMENT OF STATE,
     5     SHALL BE ADMISSIBLE IN EVIDENCE AND SHALL BE CONCLUSIVE PROOF
     6     OF THE LEGAL ESTABLISHMENT OF THE AUTHORITY.
     7     (C)  TRANSITION PROVISIONS.--
     8         (1)  ANY AUTHORITY ESTABLISHED UNDER THE FORMER
     9     PROVISIONS OF ARTICLE III OF THE ACT OF JANUARY 22, 1968
    10     (P.L.42, NO.8), KNOWN AS THE PENNSYLVANIA URBAN MASS
    11     TRANSPORTATION LAW, OR THE FORMER PROVISIONS OF CHAPTER 15
    12     (RELATING TO METROPOLITAN TRANSPORTATION AUTHORITIES) SHALL
    13     BE DEEMED, FOR ALL PURPOSES, TO BE AN AUTHORITY CREATED UNDER
    14     THIS CHAPTER, SHALL CONTINUE IN EFFECT UNDER THIS CHAPTER AS
    15     AN AUTHORITY OF THE COMMONWEALTH AND SHALL EXERCISE THOSE
    16     POWERS, FUNCTIONS AND DUTIES AND BE GOVERNED BY THOSE
    17     PROVISIONS APPLICABLE TO AN AUTHORITY CREATED UNDER THIS
    18     CHAPTER. SUCH AUTHORITY ESTABLISHED UNDER THE FORMER
    19     PROVISIONS OF ARTICLE III OF THE PENNSYLVANIA URBAN MASS
    20     TRANSPORTATION LAW OR THE FORMER PROVISIONS OF CHAPTER 15
    21     SHALL BE DEEMED TO HAVE SATISFIED THE REQUIREMENTS OF
    22     SUBSECTIONS (A) AND (B) CONCERNING THE ORGANIZATION OF AN
    23     AUTHORITY UNDER THIS CHAPTER. NOTHING IN THIS CHAPTER SHALL
    24     BE CONSTRUED TO ALTER OR MODIFY IN ANY RESPECT ANY CONTRACT
    25     OR OTHER OBLIGATION OF SUCH AUTHORITY ENTERED INTO PRIOR TO
    26     THE EFFECTIVE DATE OF THIS CHAPTER.
    27         (2)  AN AUTHORITY CREATED OR EXISTING UNDER THIS CHAPTER,
    28     INCLUDING ANY AUTHORITY ESTABLISHED UNDER THE FORMER
    29     PROVISIONS OF ARTICLE III OF THE PENNSYLVANIA URBAN MASS
    30     TRANSPORTATION LAW OR THE FORMER PROVISIONS OF CHAPTER 15,
    19930H0878B1976                 - 14 -

     1     SHALL, WITHOUT THE NECESSITY OF ACTION OR ASSIGNMENT BY IT OR
     2     ANY OTHER PERSON:
     3             (I)  CONTINUE IN THE RIGHTS AND RESPONSIBILITIES OF
     4         ANY AUTHORITY EXISTING UNDER THE FORMER PROVISIONS OF THE
     5         PENNSYLVANIA URBAN MASS TRANSPORTATION LAW OR THE FORMER
     6         PROVISIONS OF CHAPTER 15 FOR ALL PURPOSES, INCLUDING, BUT
     7         NOT LIMITED TO, RECEIPT OF ALL GRANTS, GIFTS,
     8         APPROPRIATIONS, SUBSIDIES OR OTHER PAYMENTS;
     9             (II)  CONTINUE TO BE THE OWNER OF ANY REAL OR
    10         PERSONAL PROPERTY AND ENJOY AND BE SUBJECT TO ANY AND ALL
    11         RIGHTS AND RESPONSIBILITIES APPURTENANT THERETO OF ANY
    12         AUTHORITY EXISTING UNDER THE FORMER PROVISIONS OF THE
    13         PENNSYLVANIA URBAN MASS TRANSPORTATION LAW OR THE FORMER
    14         PROVISIONS OF CHAPTER 15, INCLUDING, BUT NOT LIMITED TO,
    15         ALL ASSETS, PROPERTY, REAL AND PERSONAL, TANGIBLE AND
    16         INTANGIBLE, ALL EASEMENTS AND ALL EVIDENCES OF OWNERSHIP
    17         OR OTHER INTEREST IN PART OR IN WHOLE, AND ALL RECORDS,
    18         AND OTHER EVIDENCES PERTAINING THERETO; AND
    19             (III)  CONTINUE TO BE OBLIGATED WITH RESPECT TO ALL
    20         DEBT AND OTHER CONTRACTUAL OBLIGATIONS OF ANY AUTHORITY
    21         EXISTING UNDER THE FORMER PROVISIONS OF THE PENNSYLVANIA
    22         URBAN MASS TRANSPORTATION LAW OR THE FORMER PROVISIONS OF
    23         CHAPTER 15.
    24         (3)  IT IS HEREBY DECLARED TO BE THE INTENT OF THE
    25     GENERAL ASSEMBLY THAT AN AUTHORITY CREATED OR EXISTING UNDER
    26     THIS CHAPTER, INCLUDING ANY AUTHORITY ESTABLISHED UNDER THE
    27     FORMER PROVISIONS OF ARTICLE II OF THE PENNSYLVANIA URBAN
    28     MASS TRANSPORTATION LAW OR THE FORMER PROVISIONS OF CHAPTER
    29     15, AND THE MEMBERS, OFFICERS, OFFICIALS AND EMPLOYEES OF ANY
    30     OF THEM, SHALL CONTINUE TO ENJOY SOVEREIGN AND OFFICIAL
    19930H0878B1976                 - 15 -

     1     IMMUNITY, AS PROVIDED IN 1 PA.C.S. § 2310 (RELATING TO
     2     SOVEREIGN IMMUNITY REAFFIRMED; SPECIFIC WAIVER), AND SHALL
     3     REMAIN IMMUNE FROM SUIT EXCEPT AS PROVIDED BY AND SUBJECT TO
     4     THE PROVISION OF 42 PA.C.S. §§ 8501 (RELATING TO DEFINITIONS)
     5     THROUGH 8528 (RELATING TO LIMITATIONS ON DAMAGES).
     6  § 1712.  GOVERNING AND POLICYMAKING BODY.
     7     (A)  TRANSPORTATION BOARD.--THE GOVERNING AND POLICYMAKING
     8  BODY OF AN AUTHORITY SHALL BE A BOARD, TO BE KNOWN AS THE
     9  TRANSPORTATION BOARD OF THE METROPOLITAN AREA, CONSISTING OF
    10  MEMBERS TO BE APPOINTED AS PROVIDED IN SECTION 1713 (RELATING TO
    11  APPOINTMENT OF BOARD MEMBERS), WHO, EXCEPT FOR THE APPOINTEE OF
    12  THE GOVERNOR, MUST BE RESIDENTS OF THE METROPOLITAN AREA. NO
    13  BOARD MEMBER SHALL BE ALLOWED ANY FEES, PERQUISITES OR
    14  EMOLUMENTS, REWARD OR COMPENSATION FOR HIS SERVICES AS A MEMBER
    15  OR OFFICER OF AN AUTHORITY, BUT THE BOARD MEMBER SHALL BE
    16  REIMBURSED FOR ACTUAL EXPENSES INCURRED IN THE PERFORMANCE OF
    17  HIS DUTIES.
    18     (B)  LIMIT ON EXERCISE OF POWERS.--THE BOARD SHALL NOT
    19  INVOLVE ITSELF IN THE DAY-TO-DAY ADMINISTRATION OF THE
    20  AUTHORITY'S BUSINESS. IT SHALL LIMIT ITS EXERCISE OF POWERS TO
    21  SUCH AREAS OF DISCRETION OR POLICY AS THE FUNCTIONS AND PROGRAMS
    22  OF THE AUTHORITY, ANY SUBSTANTIAL CHANGE IN SYSTEM OPERATIONS,
    23  THE AUTHORITY'S OPERATING AND CAPITAL BUDGETS, THE AUTHORITY'S
    24  STANDARD OF SERVICES, UTILIZATION OF TECHNOLOGY, THE
    25  ORGANIZATIONAL STRUCTURE AND, SUBJECT TO THE PROVISIONS OF THIS
    26  CHAPTER, THE SELECTION OF AND THE ESTABLISHMENT OF SALARIES FOR
    27  PERSONNEL.
    28     (C)  PUBLIC OFFICIALS PROHIBITED.--NO MEMBER APPOINTED TO THE
    29  BOARD SUBSEQUENT TO THE EFFECTIVE DATE OF THIS CHAPTER SHALL BE
    30  A PUBLIC OFFICIAL. ANY PUBLIC OFFICIAL CURRENTLY SERVING AS A
    19930H0878B1976                 - 16 -

     1  MEMBER OF THE BOARD ON THE EFFECTIVE DATE OF THIS CHAPTER SHALL
     2  BE EXEMPT FROM THIS PROHIBITION.
     3  § 1713.  APPOINTMENT OF BOARD MEMBERS.
     4     (A)  APPOINTMENT.--EXCEPT AS PROVIDED IN SUBSECTION (D) WITH
     5  RESPECT TO THE CONTINUATION IN OFFICE OF MEMBERS OF THE BOARD OF
     6  ANY AUTHORITY ESTABLISHED UNDER THE FORMER PROVISIONS OF ARTICLE
     7  III OF THE ACT OF JANUARY 22, 1968 (P.L.42, NO.8), KNOWN AS THE
     8  PENNSYLVANIA URBAN MASS TRANSPORTATION LAW, OR THE FORMER
     9  PROVISIONS OF CHAPTER 15 (RELATING TO METROPOLITAN
    10  TRANSPORTATION AUTHORITIES) AT ANY TIME AFTER THE EFFECTIVE DATE
    11  OF THIS CHAPTER:
    12         (1)  GUBERNATORIAL APPOINTMENTS.--THE GOVERNOR MAY
    13     APPOINT AS A MEMBER OF THE BOARD ONE PERSON, WHO MAY BE AN EX
    14     OFFICIO APPOINTEE FROM AMONG THE VARIOUS OFFICIALS IN THIS
    15     COMMONWEALTH AND WHOSE TERM AS A BOARD MEMBER SHALL RUN
    16     CONCURRENTLY WITH THAT OF HIS COMMONWEALTH POSITION, IF ANY,
    17     OR THE TERM OF THE APPOINTING GOVERNOR, WHICHEVER IS SHORTER.
    18         (2)  LEGISLATIVE APPOINTMENTS.--THE MAJORITY LEADER AND
    19     THE MINORITY LEADER OF THE SENATE AND THE MAJORITY LEADER AND
    20     THE MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES MAY EACH
    21     APPOINT ONE PERSON TO SERVE AS A BOARD MEMBER, WHOSE TERM
    22     SHALL BE CONCURRENT WITH THE TERM AND WHO SHALL SERVE AT THE
    23     PLEASURE OF THE APPOINTING LEGISLATIVE LEADER.
    24         (3)  LOCAL APPOINTMENTS.--
    25             (I)  THE COUNTY COMMISSIONERS OR THE COUNTY COUNCIL
    26         IN EACH COUNTY AND, IN ANY COUNTY OF THE FIRST CLASS
    27         CONTAINING A CITY OF THE FIRST CLASS, THE MAYOR, WITH THE
    28         APPROVAL OF THE CITY COUNCIL, MAY APPOINT ONE PERSON FROM
    29         EACH COUNTY TO SERVE AS BOARD MEMBERS.
    30             (II)  THE COUNTY COMMISSIONERS OR THE COUNTY COUNCIL
    19930H0878B1976                 - 17 -

     1         IN EACH COUNTY AND, IN ANY COUNTY OF THE FIRST CLASS
     2         CONTAINING A CITY OF THE FIRST CLASS, THE MAYOR, WITH THE
     3         APPROVAL OF CITY COUNCIL, MAY APPOINT ADDITIONAL MEMBERS
     4         BASED UPON EACH COUNTY'S SHARE OF FINANCIAL ASSISTANCE TO
     5         THE AUTHORITY. FOR EACH 15% SHARE OF LOCAL FUNDING
     6         PURSUANT TO SECTION 1302(2)(III) (RELATING TO PROGRAM
     7         AUTHORIZATIONS), ONE ADDITIONAL MEMBER MAY BE APPOINTED.
     8         INITIALLY, DETERMINATION OF THESE LOCAL CONTRIBUTIONS
     9         SHALL BE BASED UPON LOCAL FUNDING ATTRIBUTED TO EACH
    10         COUNTY BY THE AUTHORITY FOR THE 1991-1992 FISCAL YEAR. IN
    11         SUBSEQUENT YEARS, THIS DETERMINATION SHALL BE BASED UPON
    12         THE AUTHORITY'S CERTIFICATION OF EACH COUNTY'S SHARE OF
    13         LOCAL FUNDING PROVIDED DURING THE PRIOR FISCAL YEAR. THE
    14         AUTHORITY SHALL ANNUALLY PROVIDE THIS INFORMATION WHEN
    15         SUBMITTING ITS REPORT TO THE DEPARTMENT PURSUANT TO
    16         SECTION 1741(A)(24) (RELATING TO GENERAL POWERS). ANY
    17         CHANGE IN COUNTY FUNDING THAT WOULD RESULT IN THE
    18         ADDITION OR REMOVAL OF MEMBERS FROM THE BOARD WOULD TAKE
    19         EFFECT IN THE FISCAL YEAR FOLLOWING THE AUTHORITY'S
    20         CERTIFICATION OF THE CHANGE TO THE DEPARTMENT.
    21     (B)  SUCCESSOR.--AT THE EXPIRATION OF THE TERM OF ANY BOARD
    22  MEMBER, HIS SUCCESSOR SHALL BE APPOINTED BY THE SAME POWER WHO
    23  APPOINTED THAT BOARD MEMBER, FOR A TERM OF FIVE YEARS FROM THE
    24  EXPIRATION DATE.
    25     (C)  CERTIFICATION AND OATH OF OFFICE.--THE APPOINTING POWERS
    26  SHALL CERTIFY THEIR RESPECTIVE APPOINTMENTS TO THE SECRETARY OF
    27  THE COMMONWEALTH. WITHIN 30 DAYS AFTER CERTIFICATION OF HIS
    28  APPOINTMENT AND BEFORE ENTERING UPON THE DUTIES OF HIS OFFICE,
    29  EACH MEMBER OF THE BOARD SHALL TAKE AND SUBSCRIBE THE
    30  CONSTITUTIONAL OATH OF OFFICE AND FILE IT IN THE OFFICE OF THE
    19930H0878B1976                 - 18 -

     1  SECRETARY OF THE COMMONWEALTH.
     2     (D)  TRANSITION PROVISION.--WITH RESPECT TO THE BOARD OF ANY
     3  AUTHORITY ESTABLISHED UNDER THE FORMER PROVISIONS OF ARTICLE III
     4  OF THE PENNSYLVANIA URBAN MASS TRANSPORTATION LAW OR THE FORMER
     5  PROVISIONS OF CHAPTER 15, ALL MEMBERS OF THE BOARD OF THE
     6  AUTHORITY SHALL BE DEEMED TO BE MEMBERS OF THE BOARD OF AN
     7  AUTHORITY CREATED UNDER THIS CHAPTER AND SHALL CONTINUE IN
     8  OFFICE UNTIL THEIR RESPECTIVE TERMS OF OFFICE WOULD HAVE EXPIRED
     9  AS PROVIDED FOR IN THE FORMER PROVISIONS OF THE PENNSYLVANIA
    10  URBAN MASS TRANSPORTATION LAW OR IN SECTION 1517 (RELATING TO
    11  APPOINTMENT OF BOARD MEMBERS) AND SHALL EXERCISE THE POWERS,
    12  FUNCTIONS AND DUTIES OF A BOARD OF AN AUTHORITY CREATED UNDER
    13  THIS CHAPTER.
    14     (E)  EXPIRATION OF TERMS OF CURRENT MEMBERS.--THIRTY DAYS
    15  FROM THE EFFECTIVE DATE OF THIS CHAPTER, THE TERMS OF ALL BOARD
    16  MEMBERS CURRENTLY SERVING UNDER SECTION 1517(A)(2) (RELATING TO
    17  APPOINTMENT OF BOARD MEMBERS) SHALL EXPIRE. AFTER THAT DATE,
    18  APPOINTMENTS MAY BE MADE TO THE BOARD UNDER SUBSECTION (A)(3).
    19  § 1714.  RESIGNATION AND VACANCIES.
    20     (A)  REMOVAL AND VACANCY.--MEMBERS OF THE BOARD SHALL HOLD
    21  OFFICE UNTIL THEIR RESPECTIVE SUCCESSORS HAVE BEEN APPOINTED AND
    22  HAVE QUALIFIED. THE APPOINTING POWER MAY REMOVE ANY MEMBER OF
    23  THE BOARD APPOINTED BY THAT APPOINTING POWER, BUT ONLY IN CASE
    24  OF INCOMPETENCY, NEGLECT OF DUTY OR MALFEASANCE IN OFFICE. NO
    25  MEMBER SHALL BE THUS REMOVED EXCEPT AFTER HAVING BEEN GIVEN A
    26  COPY OF THE CHARGES AGAINST THE MEMBER AND AN OPPORTUNITY TO BE
    27  PUBLICLY HEARD, AT A PLACE IN THE METROPOLITAN AREA, IN PERSON
    28  OR BY COUNSEL, IN HIS OWN DEFENSE UPON NOT LESS THAN TEN DAYS'
    29  WRITTEN NOTICE. IN CASE OF FAILURE TO QUALIFY WITHIN THE TIME
    30  REQUIRED OR OF ABANDONMENT OF HIS OFFICE OR IN CASE OF DEATH,
    19930H0878B1976                 - 19 -

     1  CONVICTION OF A FELONY OR REMOVAL FROM OFFICE, THAT OFFICE SHALL
     2  BECOME VACANT.
     3     (B)  ABANDONMENT.--A MEMBER SHALL BE DEEMED TO HAVE ABANDONED
     4  HIS OFFICE UPON FAILURE TO ATTEND ANY REGULAR OR SPECIAL MEETING
     5  OF THE BOARD, WITHOUT EXCUSE APPROVED BY RESOLUTION OF THE
     6  BOARD, FOR A PERIOD OF FOUR MONTHS OR UPON REMOVAL OF HIS
     7  RESIDENCE FROM THE METROPOLITAN AREA.
     8     (C)  FILLING OF VACANCY.--EACH VACANCY SHALL BE FILLED FOR
     9  THE UNEXPIRED TERM BY APPOINTMENT IN LIKE MANNER AND WITH LIKE
    10  REGARD AS TO THE PLACE OF RESIDENCE OF THE APPOINTEE AS IN CASE
    11  OF EXPIRATION OF THE TERM OF A MEMBER OF THE BOARD.
    12     (D)  APPEAL.--A MEMBER REMOVED FOR INCOMPETENCY, NEGLECT OF
    13  DUTY OR MALFEASANCE IN OFFICE SHALL HAVE THE RIGHT TO APPEAL
    14  THAT REMOVAL TO THE COURT OF COMMON PLEAS OF THE COUNTY FOR
    15  WHICH THAT MEMBER WAS APPOINTED, BUT ONLY ON THE GROUND OF ERROR
    16  OF LAW OR MANIFEST AND FLAGRANT ABUSE OF DISCRETION.
    17  § 1715.  MEETINGS, QUORUM, OFFICERS AND RECORDS.
    18     (A)  MEETINGS.--REGULAR MEETINGS OF THE BOARD SHALL BE HELD
    19  IN THE METROPOLITAN AREA AT LEAST ONCE IN EACH CALENDAR MONTH
    20  EXCEPT JULY OR AUGUST, THE TIME AND PLACE OF THE MEETINGS TO BE
    21  FIXED BY THE BOARD. A MAJORITY OF THE BOARD SHALL CONSTITUTE A
    22  QUORUM FOR THE TRANSACTION OF BUSINESS. ALL ACTION OF THE BOARD
    23  SHALL BE BY RESOLUTION, AND THE AFFIRMATIVE VOTE OF A MAJORITY
    24  OF ALL THE MEMBERS SHALL BE NECESSARY FOR THE ADOPTION OF ANY
    25  RESOLUTION. NO ACTION BY THE BOARD TO WHICH AN EXPRESS OBJECTION
    26  HAS BEEN MADE, UNDER THIS SECTION, BY A BOARD MEMBER OR MEMBERS
    27  REPRESENTING A COUNTY OR COUNTIES HAVING ONE-THIRD OR MORE OF
    28  THE POPULATION OF THE METROPOLITAN AREA, AS DETERMINED BY THE
    29  MOST RECENT DECENNIAL CENSUS, SHALL BE CARRIED UNLESS SUPPORTED
    30  AT A SUBSEQUENT REGULAR MEETING OF THE BOARD BY THE VOTES OF AT
    19930H0878B1976                 - 20 -

     1  LEAST THREE-QUARTERS OF THE MEMBERSHIP OF THE BOARD. IN CASE OF
     2  DISAGREEMENT BETWEEN MEMBERS REPRESENTING THE SAME COUNTY, EACH
     3  MEMBER SHALL BE DEEMED TO REPRESENT ONE-HALF OF THE POPULATION
     4  OF THAT COUNTY.
     5     (B)  OFFICERS.--THE BOARD SHALL ELECT FROM AMONG ITS MEMBERS
     6  A CHAIRMAN AND A VICE CHAIRMAN, EACH OF WHOM SHALL SERVE FOR A
     7  TERM OF ONE YEAR AND UNTIL HIS SUCCESSOR SHALL HAVE BEEN ELECTED
     8  AND QUALIFIED AND WHO SHALL PERFORM THOSE DUTIES AS THE BOARD
     9  SHALL, BY RESOLUTION, DETERMINE.
    10     (C)  PUBLIC MEETINGS AND RECORDS.--
    11         (1)  THE BOARD SHALL BE SUBJECT TO THE ACT OF JUNE 21,
    12     1957 (P.L.390, NO.212), REFERRED TO AS THE RIGHT-TO-KNOW LAW,
    13     AND THE ACT OF JULY 3, 1986 (P.L.388, NO.84), KNOWN AS THE
    14     SUNSHINE ACT.
    15         (2)  NOTWITHSTANDING THE PROVISIONS OF SECTION 4 OF THE
    16     SUNSHINE ACT, ONE OR MORE PERSONS MAY PARTICIPATE IN A
    17     MEETING OF THE BOARD, OR OF ANY COMMITTEE THEREOF, BY MEANS
    18     OF CONFERENCE TELEPHONE OR SIMILAR COMMUNICATIONS EQUIPMENT
    19     BY MEANS OF WHICH ALL PERSONS PARTICIPATING IN THE MEETING
    20     CAN HEAR EACH OTHER, INCLUDING, IN THE CASE OF A MEETING OPEN
    21     TO THE PUBLIC, ALL OTHER PERSONS PRESENT AT THE PLACE OF
    22     MEETING DESIGNATED BY PUBLIC NOTICE. PARTICIPATION BY ONE OR
    23     MORE MEMBERS OF THE BOARD IN A MEETING PURSUANT TO THIS
    24     SUBSECTION SHALL CONSTITUTE PRESENCE IN PERSON AT THE
    25     MEETING.
    26  § 1716.  SECRETARY, OATH, BOND.
    27     THE BOARD SHALL APPOINT A SECRETARY, WHO SHALL NOT BE A
    28  MEMBER OF THE BOARD, TO HOLD OFFICE AT THE PLEASURE OF THE BOARD
    29  AND SHALL FIX HIS DUTIES AND COMPENSATION. THE SECRETARY SHALL
    30  NOT BE ENGAGED IN ANY OTHER BUSINESS OR EMPLOYMENT DURING HIS
    19930H0878B1976                 - 21 -

     1  TENURE OF OFFICE AS SECRETARY OF THE BOARD. BEFORE ENTERING UPON
     2  THE DUTIES OF THE OFFICE OF SECRETARY, HE SHALL TAKE AND
     3  SUBSCRIBE THE CONSTITUTIONAL OATH OF OFFICE. OFFICERS AND
     4  EMPLOYEES OF THE AUTHORITY, AND THOSE MEMBERS OF THE BOARD AS
     5  THE BOARD MAY DETERMINE, SHALL EXECUTE CORPORATE SURETY BONDS
     6  CONDITIONED UPON THE FAITHFUL PERFORMANCE OF THEIR RESPECTIVE
     7  DUTIES. A BLANKET FORM OF SURETY BOND MAY BE USED FOR THIS
     8  PURPOSE IF THE BOARD DEEMS THIS PROCEDURE TO BE PRACTICAL AND
     9  PRUDENT. THE OBLIGATION OF THE SURETIES SHALL NOT EXTEND TO ANY
    10  LOSS SUSTAINED BY THE INSOLVENCY, FAILURE OR CLOSING OF ANY
    11  NATIONAL OR STATE BANK, BANK AND TRUST COMPANY OR TRUST COMPANY
    12  WHEREIN FUNDS OF THE AUTHORITY HAVE BEEN DEPOSITED IF THE BANK,
    13  BANK AND TRUST COMPANY OR TRUST COMPANY HAS BEEN APPROVED BY THE
    14  BOARD AS A DEPOSITORY FOR THESE FUNDS. THE OATHS OF OFFICE AND
    15  THE SURETY BOND OR BONDS SHALL BE FILED IN THE PRINCIPAL OFFICE
    16  OF THE AUTHORITY.
    17  § 1717.  CONTROLLER.
    18     THE BOARD SHALL APPOINT A CONTROLLER, WHO SHALL NOT BE A
    19  MEMBER OF THE BOARD, TO HOLD OFFICE AT THE PLEASURE OF THE BOARD
    20  AND SHALL FIX HIS COMPENSATION. THE CONTROLLER SHALL CONSULT
    21  WITH, ADVISE AND ASSIST THE BOARD ON FINANCIAL AND ACCOUNTING
    22  MATTERS, INCLUDING, BUT NOT LIMITED TO, THE AUTHORITY'S SYSTEM
    23  OF INTERNAL CONTROLS, FINANCIAL REPORTS, CURRENT FINANCIAL
    24  CONDITION AND SUCH OTHER FINANCIAL AND ACCOUNTING MATTERS WHICH
    25  THE BOARD MAY DEEM APPROPRIATE. THE CONTROLLER SHALL SUBMIT AN
    26  ANNUAL REPORT OF THE AUTHORITY'S FINANCIAL CONDITION WHICH SHALL
    27  BE IN ADDITION TO ANY OTHER FINANCIAL REPORT REQUIRED BY THIS
    28  CHAPTER TO THE BOARD, THE GENERAL MANAGER AND THE SECRETARY OF
    29  TRANSPORTATION. THE CONTROLLER SHALL EXECUTE A CORPORATE SURETY
    30  BOND AND, BEFORE ENTERING UPON THE DUTIES OF HIS OFFICE, SHALL
    19930H0878B1976                 - 22 -

     1  TAKE AND SUBSCRIBE THE CONSTITUTIONAL OATH OF OFFICE.
     2  § 1718.  SIGNATURES.
     3     (A)  FACSIMILE SIGNATURES.--WHENEVER THE BUSINESS OF THE
     4  AUTHORITY REQUIRES THE AFFIXING OF THE SIGNATURE OF ANY OFFICER
     5  OR EMPLOYEE OF THE AUTHORITY, THE USE OF A FACSIMILE SIGNATURE,
     6  WHEN EXPRESSLY AUTHORIZED BY RESOLUTION OF THE BOARD, SHALL HAVE
     7  THE SAME FORCE AND EFFECT AS AN ORIGINAL SIGNATURE.
     8     (B)  SIGNATURES OF OFFICERS CEASING TO HOLD OFFICE.--IN CASE
     9  ANY OFFICER WHOSE SIGNATURE APPEARS UPON ANY CHECK, DRAFT, BOND,
    10  CERTIFICATE OR INTEREST COUPON ISSUED UNDER THIS CHAPTER CEASES
    11  TO HOLD OFFICE BEFORE THE DELIVERY THEREOF TO THE PAYEE OR THE
    12  PURCHASER OF ANY BOND OR CERTIFICATE, THE OFFICER'S SIGNATURE
    13  NEVERTHELESS SHALL BE VALID AND SUFFICIENT FOR ALL PURPOSES WITH
    14  THE SAME EFFECT AS IF HE HAD REMAINED IN OFFICE UNTIL DELIVERY
    15  THEREOF.
    16  § 1719.  GENERAL MANAGER.
    17     THE BOARD SHALL, UPON THE APPROVAL OF A QUALIFIED MAJORITY,
    18  APPOINT A GENERAL MANAGER, WHO SHALL BE THE CHIEF OPERATIONS
    19  OFFICER OF THE AUTHORITY AND WHO SHALL HAVE DEMONSTRATED THAT HE
    20  IS COMPETENT AND EXPERIENCED IN THE AREA OF TRANSIT MANAGEMENT,
    21  AND SHALL FIX HIS COMPENSATION. THE GENERAL MANAGER SHALL HAVE
    22  THE POWER AND DUTY TO:
    23         (1)  MANAGE THE PROPERTIES OF THE AUTHORITY.
    24         (2)  ATTEND TO THE DAY-TO-DAY ADMINISTRATION, FISCAL
    25     MANAGEMENT AND OPERATION OF THE AUTHORITY'S BUSINESS.
    26         (3)  APPOINT SUCH EMPLOYEES, IN CONSULTATION WITH THE
    27     BOARD, AS HE DEEMS NECESSARY TO CONDUCT THE AFFAIRS OF HIS
    28     OFFICE, SUBJECT TO THE PROVISIONS OF THIS CHAPTER.
    29         (4)  IMPLEMENT AND ENFORCE ALL RESOLUTIONS, RULES AND
    30     REGULATIONS OF THE BOARD.
    19930H0878B1976                 - 23 -

     1         (5)  SUBMIT TO THE BOARD, ACCORDING TO A SCHEDULE
     2     ESTABLISHED BY IT, PERIODIC REPORTS SHOWING THE OVERALL STATE
     3     OR CONDITION OF THE TRANSPORTATION SYSTEM ACCORDING TO
     4     ESTABLISHED INDUSTRY PERFORMANCE STANDARDS. THESE REPORTS
     5     SHALL BE CONSIDERED PUBLIC RECORDS.
     6         (6)  IMPLEMENT POLICIES ESTABLISHED BY THE BOARD.
     7  § 1720.  TREASURER.
     8     THE GENERAL MANAGER SHALL APPOINT A TREASURER TO HOLD OFFICE
     9  AT HIS PLEASURE. IN ADDITION TO THE DUTIES IMPOSED ON THE
    10  TREASURER BY THIS CHAPTER, THE TREASURER SHALL PERFORM SUCH
    11  OTHER DUTIES AS THE GENERAL MANAGER SHALL PRESCRIBE. THE
    12  TREASURER SHALL EXECUTE A CORPORATE SURETY BOND AND, BEFORE
    13  ENTERING UPON THE DUTIES OF HIS OFFICE, SHALL TAKE AND SUBSCRIBE
    14  THE CONSTITUTIONAL OATH OF OFFICE.
    15  § 1721.  COUNSEL TO THE BOARD.
    16     THE BOARD SHALL APPOINT A COUNSEL TO THE BOARD, WHO SHALL BE
    17  AN ATTORNEY AT LAW ADMITTED TO PRACTICE BEFORE THE SUPREME COURT
    18  OF PENNSYLVANIA AND WHO SHALL BE APPOINTED BY THE BOARD TO SERVE
    19  AT ITS DISCRETION. THE BOARD SHALL PAY THE COUNSEL TO THE BOARD
    20  REASONABLE COMPENSATION FOR SERVICES ACTUALLY PERFORMED. THE
    21  COUNSEL TO THE BOARD SHALL ADVISE THE BOARD IN ALL MATTERS
    22  RELATING TO ITS OFFICIAL DUTIES AND SHALL, UPON THE APPROVAL OF
    23  A QUALIFIED MAJORITY AND NOTWITHSTANDING ANY OTHER PROVISION OF
    24  THIS CHAPTER, APPROVE ALL MATTERS RELATING TO BONDS AND
    25  INDENTURES.
    26  § 1722.  LEGAL DIVISION AND GENERAL COUNSEL.
    27     (A)  ESTABLISHMENT AND OPERATION.--THE BOARD SHALL, UPON THE
    28  APPROVAL OF A QUALIFIED MAJORITY, APPOINT A GENERAL COUNSEL WHO
    29  SHALL BE AN ATTORNEY ADMITTED TO PRACTICE BEFORE THE SUPREME
    30  COURT OF PENNSYLVANIA. THE GENERAL MANAGER, IN CONSULTATION WITH
    19930H0878B1976                 - 24 -

     1  THE BOARD, SHALL ESTABLISH A LEGAL DIVISION ADMINISTERED BY A
     2  FULL-TIME GENERAL COUNSEL AND CONSISTING OF SUCH ATTORNEYS AND
     3  OTHER EMPLOYEES AS THE GENERAL COUNSEL FROM TIME TO TIME SHALL
     4  DETERMINE TO BE NECESSARY TO ADMINISTER THE LEGAL AFFAIRS OF THE
     5  AUTHORITY, EXCEPT AS PROVIDED IN SECTION 1721 (RELATING TO
     6  COUNSEL TO THE BOARD). THE LEGAL DIVISION SHALL PROSECUTE AND
     7  DEFEND, SETTLE OR COMPROMISE ALL SUITS OR CLAIMS FOR AND ON
     8  BEHALF OF THE AUTHORITY AND SHALL ADVISE THE GENERAL MANAGER IN
     9  ALL MATTERS RELATING TO HIS OFFICIAL DUTIES. THE AUTHORITY SHALL
    10  NOT BE CONSIDERED EITHER AN EXECUTIVE AGENCY OR AN INDEPENDENT
    11  AGENCY FOR PURPOSES OF THE ACT OF OCTOBER 15, 1980 (P.L.950,
    12  NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT, BUT SHALL
    13  POSSESS THE SAME STATUS FOR SUCH PURPOSE AS THE AUDITOR GENERAL,
    14  THE STATE TREASURER AND THE PENNSYLVANIA PUBLIC UTILITY
    15  COMMISSION, EXCEPT THAT THE PROVISIONS OF SECTION 204(B) AND (F)
    16  OF THE COMMONWEALTH ATTORNEYS ACT SHALL NOT APPLY TO THE
    17  AUTHORITY AND, NOTWITHSTANDING THE PROVISIONS OF 42 PA.C.S. §
    18  8525 (RELATING TO LEGAL ASSISTANCE), THE AUTHORITY THROUGH ITS
    19  COUNSEL SHALL DEFEND ACTIONS BROUGHT AGAINST THE AUTHORITY AND
    20  ITS OFFICERS AND EMPLOYEES WHEN ACTING WITHIN THE SCOPE OF THEIR
    21  OFFICIAL DUTIES.
    22     (B)  OTHER COUNSEL.--THE GENERAL COUNSEL MAY, FROM TIME TO
    23  TIME, WITH THE APPROVAL OF A QUALIFIED MAJORITY, RETAIN SUCH
    24  OTHER LEGAL COUNSEL ON SUCH TERMS AND FOR SUCH PURPOSES AS SHALL
    25  BE DEEMED NECESSARY. NOTHING IN THIS SECTION OR IN SECTION 1721
    26  SHALL BE CONSTRUED SO AS TO LIMIT THE POWER OF THE LEGAL OR
    27  OTHER OFFICERS OF THE COUNTIES AND MUNICIPALITIES COMPRISING THE
    28  METROPOLITAN AREA TO ACT IN BEHALF OF THE GENERAL MANAGER IN
    29  THEIR OFFICIAL CAPACITIES WHEN REQUESTED TO DO SO BY THE GENERAL
    30  MANAGER.
    19930H0878B1976                 - 25 -

     1  § 1723.  OTHER EMPLOYEES.
     2     (A)  COLLECTIVE BARGAINING.--THE BOARD ACTING THROUGH THE
     3  GENERAL MANAGER SHALL HAVE THE RIGHT TO BARGAIN COLLECTIVELY AND
     4  ENTER INTO AGREEMENTS WITH LABOR ORGANIZATIONS. THE BOARD ACTING
     5  THROUGH THE GENERAL MANAGER SHALL RECOGNIZE AND BE BOUND BY
     6  EXISTING LABOR UNION AGREEMENTS WHERE THEY EXIST BETWEEN LABOR
     7  UNIONS AND TRANSPORTATION COMPANIES THAT ARE ACQUIRED,
     8  PURCHASED, CONDEMNED OR LEASED BY THE BOARD. IT SHALL DESIGNATE
     9  THEIR DUTIES AND REQUIRE BONDS OF THOSE OF THEM AS THE BOARD MAY
    10  DESIGNATE.
    11     (B)  COMPENSATION.--THE COMPENSATION OF THE GENERAL MANAGER,
    12  COUNSEL TO THE BOARD, SECRETARY AND CONTROLLER SHALL BE FIXED BY
    13  THE BOARD. FOR ALL OTHER OFFICERS, EMPLOYEES, ATTORNEYS,
    14  ENGINEERS, CONSULTANTS AND AGENTS, THE BOARD SHALL ESTABLISH
    15  SALARY SCALES. THE GENERAL MANAGER SHALL ESTABLISH, WITHIN THESE
    16  SALARY SCALES, COMPENSATION LEVELS BASED UPON WRITTEN APPRAISALS
    17  OF PERFORMANCE FOR ALL EMPLOYEES UNDER HIS CONTROL. THE
    18  SECRETARY AND THE CONTROLLER SHALL ESTABLISH, WITHIN THESE
    19  SALARY SCALES, COMPENSATION LEVELS BASED UPON WRITTEN APPRAISALS
    20  OF PERFORMANCE FOR ALL EMPLOYEES IN THEIR RESPECTIVE OFFICES.
    21     (C)  OTHER OFFICES OR EMPLOYMENT.--WITH THE EXCEPTION OF THE
    22  SECRETARY, ANY OF THE OFFICERS AND EMPLOYEES DESCRIBED IN
    23  SUBSECTION (B) MAY BE APPOINTED, RETAINED, HIRED OR EMPLOYED ON
    24  A PART-TIME BASIS AND MAY BE ENGAGED IN OTHER BUSINESS OR
    25  PROFESSIONAL ACTIVITIES. NO SALARIED EXECUTIVE OFFICER OF THE
    26  AUTHORITY SHALL HOLD ANY OTHER OFFICE IN OR BE AN EMPLOYEE OF
    27  THE FEDERAL, STATE OR ANY COUNTY OR MUNICIPAL GOVERNMENT EXCEPT
    28  AN OFFICE OR EMPLOYMENT WITHOUT COMPENSATION OR AN OFFICE IN THE
    29  MILITARY RESERVE OR NATIONAL GUARD.
    30  § 1724.  PERSONNEL MATTERS.
    19930H0878B1976                 - 26 -

     1     (A)  CLASSIFICATION OF POSITION.--
     2         (1)  THE GENERAL MANAGER SHALL CLASSIFY ALL THE OFFICES,
     3     POSITIONS AND GRADES OF REGULAR EMPLOYMENT REQUIRED WITH
     4     REFERENCE TO THE DUTIES AND COMPENSATION FIXED THEREFOR AND
     5     ADOPT RULES GOVERNING APPOINTMENTS TO ANY OF SUCH OFFICES OR
     6     POSITIONS ON THE BASIS OF MERIT AND EFFICIENCY.
     7         (2)  PARAGRAPH (1) SHALL NOT APPLY TO THE CHAIRMAN OF THE
     8     BOARD, SECRETARY, COUNSEL TO THE BOARD OR CONTROLLER.
     9         (3)  NO DISCRIMINATION SHALL BE MADE IN ANY APPOINTMENT
    10     OR PROMOTION BECAUSE OF AGE, SEX, RACE, CREED, COLOR,
    11     POLITICAL OR RELIGIOUS AFFILIATIONS OR DISABILITY. NO OFFICER
    12     OR EMPLOYEE SHALL BE DISCHARGED OR DEMOTED EXCEPT FOR JUST
    13     CAUSE.
    14     (B)  CHANGE IN WORK FORCE.--THE GENERAL MANAGER MAY ABOLISH
    15  ANY OFFICE OR REDUCE THE FORCE OF EMPLOYEES FOR LACK OF WORK OR
    16  LACK OF FUNDS, BUT, IN SO DOING, THE OFFICER OR EMPLOYEE WITH
    17  THE SHORTEST SERVICE RECORD IN THE CLASSIFICATION AND GRADE TO
    18  WHICH THE OFFICER OR EMPLOYEE BELONGS SHALL BE FIRST RELEASED
    19  FROM SERVICE AND SHALL BE REINSTATED IN ORDER OF SENIORITY WHEN
    20  ADDITIONAL FORCE OF EMPLOYEES IN THAT JOB CLASSIFICATION AND
    21  GRADE IS REQUIRED. NO PERSON SHALL BE RELEASED FROM SERVICE
    22  UNDER THIS SUBSECTION IF THE PERSON CAN BE TRANSFERRED:
    23         (1)  TO ANOTHER JOB CLASSIFICATION AT A LOWER GRADE IN
    24     WHICH JOB CLASSIFICATION THE PERSON HAD PREVIOUSLY SERVED,
    25     FOR WHICH THAT PERSON IS QUALIFIED, AND IN WHICH THE
    26     INCUMBENT IS JUNIOR IN SENIORITY; OR
    27         (2)  TO A VACANCY IN ANOTHER JOB CLASSIFICATION FOR WHICH
    28     THAT PERSON IS QUALIFIED.
    29     (C)  PENSION SYSTEM.--THERE SHALL BE ESTABLISHED AND
    30  MAINTAINED BY THE AUTHORITY A PENSION AND RETIREMENT SYSTEM TO
    19930H0878B1976                 - 27 -

     1  PROVIDE FOR PAYMENTS WHEN DUE UNDER SUCH SYSTEM OR AS MODIFIED
     2  FROM TIME TO TIME BY RESOLUTION OF THE BOARD. FOR THIS PURPOSE,
     3  BOTH THE BOARD AND THE PARTICIPATING EMPLOYEES SHALL MAKE SUCH
     4  PERIODIC PAYMENTS TO THE ESTABLISHED SYSTEM AS MAY BE DETERMINED
     5  BY RESOLUTION. THE BOARD MAY PROVIDE FOR PARTICIPATION BY ITS
     6  EMPLOYEES IN THE SOCIAL SECURITY PROGRAM OR, IN LIEU OF SOCIAL
     7  SECURITY PAYMENTS REQUIRED TO BE PAID BY PRIVATE CORPORATIONS
     8  ENGAGED IN SIMILAR ACTIVITY, SHALL MAKE PAYMENTS INTO SUCH
     9  ESTABLISHED SYSTEM AT LEAST EQUAL IN AMOUNT TO THE AMOUNT SO
    10  REQUIRED TO BE PAID BY SUCH PRIVATE CORPORATIONS OR SHALL MAKE
    11  SUCH OTHER ARRANGEMENTS AS WILL ACCOMPLISH THE SAME PURPOSE.
    12  PROVISIONS SHALL BE MADE BY THE BOARD FOR ALL OFFICERS AND
    13  EMPLOYEES OF THE AUTHORITY APPOINTED UNDER THIS CHAPTER TO
    14  BECOME, SUBJECT TO PROCEDURES ADOPTED BY RESOLUTION OF THE
    15  BOARD, MEMBERS AND BENEFICIARIES OF THE PENSIONS AND RETIREMENT
    16  SYSTEM, WITH UNIFORM RIGHTS, PRIVILEGES, OBLIGATIONS AND STATUS
    17  AS TO THE CLASS IN WHICH THE OFFICERS AND EMPLOYEES BELONG.
    18  MEMBERS AND BENEFICIARIES OF ANY PENSION OR RETIREMENT SYSTEM
    19  ESTABLISHED BY A TRANSPORTATION SYSTEM ACQUIRED BY THE AUTHORITY
    20  SHALL CONTINUE TO HAVE RIGHTS, PRIVILEGES, BENEFITS, OBLIGATIONS
    21  AND STATUS WITH RESPECT TO THE PREVIOUSLY ESTABLISHED SYSTEM. TO
    22  ACHIEVE THE PURPOSES SET FORTH IN THIS SUBSECTION, THE BOARD
    23  SHALL, BY RESOLUTION, ADOPT APPROPRIATE PROCEDURES AND FROM TIME
    24  TO TIME SHALL OBTAIN COMPETENT ACTUARIAL ADVICE.
    25  § 1725.  PUBLIC HEARINGS.
    26     (A)  CONDUCT.--ALL PUBLIC HEARINGS REQUIRED BY THIS CHAPTER
    27  SHALL BE CONDUCTED SO AS TO INSURE THAT:
    28         (1)  MEMBERS OF THE PUBLIC ARE AFFORDED A REASONABLE
    29     OPPORTUNITY TO COMMENT ORALLY OR IN WRITING OR BOTH ORALLY
    30     AND IN WRITING CONCERNING ACTIONS THE AUTHORITY PROPOSES TO
    19930H0878B1976                 - 28 -

     1     TAKE.
     2         (2)  THE SITE OF THE HEARING IS A CONVENIENT, ACCESSIBLE
     3     LOCATION.
     4         (3)  MEMBERS OF THE PUBLIC ARE ADEQUATELY INFORMED AT THE
     5     OUTSET REGARDING THE PURPOSES OF THE HEARING AND THE MATTERS
     6     ON THE AGENDA.
     7         (4)  REASONABLE AND LEGITIMATE QUESTIONS FROM MEMBERS OF
     8     THE PUBLIC ARE ANSWERED.
     9     (B)  DECREASE IN SERVICE.--WHENEVER A DECREASE IN SERVICE IS
    10  PROPOSED, A PUBLIC HEARING SHALL BE CONDUCTED IN ACCORDANCE WITH
    11  THIS SECTION IN THE AREA AFFECTED BY THE PROPOSED DECREASE IN
    12  SERVICE.
    13  § 1726.  CITIZEN ADVISORY COMMITTEE.
    14     (A)  ESTABLISHMENT AND COMPOSITION.--THERE IS HEREBY
    15  ESTABLISHED A CITIZEN ADVISORY COMMITTEE. THE COMMITTEE SHALL
    16  CONSIST OF:
    17         (1)  AN EVEN NUMBER OF MEMBERS OF THE GENERAL PUBLIC NOT
    18     FEWER THAN 14 AND NOT GREATER THAN 24, THE EXACT NUMBER TO BE
    19     DETERMINED BY THE GENERAL MANAGER, WHO SHALL BE APPOINTED BY
    20     THE COUNTY COMMISSIONERS OR THE COUNTY COUNCIL, AS THE CASE
    21     MAY BE, OF ALL COUNTIES OF THE THIRD CLASS AND SECOND CLASS A
    22     WHO ARE INVOLVED WITH ANY CITY OF THE FIRST CLASS IN THE
    23     OPERATION OF A TRANSPORTATION SYSTEM AND BY THE MAYOR OF ANY
    24     SUCH CITY OF THE FIRST CLASS FROM RESIDENTS OF THEIR
    25     RESPECTIVE MUNICIPALITIES WHO ARE REGULAR USERS OF MASS
    26     TRANSPORTATION SERVICE; AND
    27         (2)  FIVE MEMBERS OF THE GENERAL PUBLIC, ONE RESIDENT
    28     FROM EACH OF THE COUNTIES MENTIONED IN PARAGRAPH (1) AND ONE
    29     RESIDENT FROM THE CITY MENTIONED IN PARAGRAPH (1) WHO ARE
    30     REGULAR USERS OF MASS TRANSPORTATION SERVICE, WHO SHALL BE
    19930H0878B1976                 - 29 -

     1     APPOINTED BY THE GENERAL MANAGER.
     2     (B)  TERMS.--THE COMPOSITION OF THE COMMITTEE SHALL REFLECT
     3  THE PROPORTIONATE DISTRIBUTION OF TOTAL RIDERSHIP AMONG ALL
     4  COUNTIES OF THE THIRD CLASS AND SECOND CLASS A WHO ARE INVOLVED
     5  WITH ANY CITY OF THE FIRST CLASS IN THE OPERATION OF A
     6  TRANSPORTATION SYSTEM AND ANY SUCH CITY OF THE FIRST CLASS. THE
     7  TERMS OF THE MEMBERS SHALL BE TWO YEARS FROM THE DATE OF
     8  APPOINTMENT OR UNTIL A SUCCESSOR HAS BEEN APPOINTED EXCEPT THAT
     9  ONE-HALF OF THE MEMBERS FIRST APPOINTED SHALL SERVE FOR TERMS OF
    10  ONE YEAR AND THE OTHER ONE-HALF SHALL SERVE FOR TERMS OF TWO
    11  YEARS. NO MEMBER SHALL SERVE MORE THAN THREE CONSECUTIVE TERMS.
    12  THE COMMITTEE SHALL SELECT FROM AMONG ITS NUMBER A CHAIRMAN,
    13  VICE CHAIRMAN AND A SECRETARY. A MAJORITY OF THE MEMBERS OF THE
    14  COMMITTEE PLUS ONE SHALL CONSTITUTE A QUORUM.
    15     (C)  SUBJECTS TO BE SUBMITTED.--REGARDLESS OF WHETHER PUBLIC
    16  HEARINGS ARE REQUIRED ON THE MATTERS DESCRIBED IN THIS
    17  SUBSECTION, THE GENERAL MANAGER SHALL SUBMIT TO THE COMMITTEE
    18  PROPOSALS REGARDING THE ADOPTION OR AMENDMENT OF A COMPREHENSIVE
    19  TRANSPORTATION PLAN, THE ANNUAL OPERATING BUDGET, ANY CAPITAL
    20  BUDGET, THE FACILITIES TO BE OPERATED, THE SERVICES TO BE
    21  AVAILABLE AND THE RATES TO BE CHARGED THEREFOR OR OTHER MATTERS
    22  OF A SIMILAR NATURE PRIOR TO ANY FINAL ACTION RELATING TO ANY OF
    23  THE FOREGOING. THE COMMITTEE MAY THOROUGHLY CONSIDER THE
    24  PROPOSALS AND MAY PREPARE AND TRANSMIT TO THE GENERAL MANAGER
    25  AND TO ANY INTERESTED MEMBER OF THE PUBLIC WRITTEN COMMENTS
    26  CONCERNING THE PROPOSALS PRIOR TO THE DATE WHEN FINAL ACTION IS
    27  TO BE TAKEN.
    28     (D)  NATURE OF COMMITTEE'S COMMENTS.--ALTHOUGH THE GENERAL
    29  MANAGER SHALL GIVE CAREFUL AND DUE CONSIDERATION TO THE
    30  COMMITTEE'S COMMENTS PRIOR TO THE TAKING OF ANY FINAL ACTION,
    19930H0878B1976                 - 30 -

     1  THE COMMENTS SHALL BE CONSIDERED ONLY ADVISORY IN NATURE.
     2     (E)  TRANSITION PROVISION.--WITH RESPECT TO THE CITIZEN
     3  ADVISORY COMMITTEE ESTABLISHED UNDER THE FORMER PROVISIONS OF
     4  ARTICLE III OF THE ACT OF JANUARY 22, 1968 (P.L.42, NO.8), KNOWN
     5  AS THE PENNSYLVANIA URBAN MASS TRANSPORTATION ACT, OR THE FORMER
     6  PROVISIONS OF CHAPTER 15 (RELATING TO METROPOLITAN
     7  TRANSPORTATION AUTHORITIES) THAT COMMITTEE SHALL CONTINUE IN
     8  EFFECT AND SHALL BE DEEMED, FOR ALL PURPOSES, TO BE A COMMITTEE
     9  CREATED UNDER THIS SECTION. THIS COMMITTEE SHALL BE DEEMED TO
    10  HAVE SATISFIED THE REQUIREMENTS OF SUBSECTIONS (A) AND (B)
    11  CONCERNING THE ESTABLISHMENT, FUNCTIONS AND DUTIES OF A CITIZENS
    12  ADVISORY COMMITTEE UNDER THIS CHAPTER. ALL MEMBERS OF THE
    13  COMMITTEE SHALL CONTINUE IN OFFICE AND SHALL EXERCISE THE
    14  POWERS, FUNCTIONS AND DUTIES OF MEMBERS OF THE COMMITTEE UNTIL
    15  THE EXPIRATION OF THEIR RESPECTIVE TERMS OF OFFICE IN EFFECT ON
    16  THE EFFECTIVE DATE OF THIS CHAPTER.
    17  § 1727.  INVESTIGATIONS AND SUBPOENAS.
    18     (A)  PROCEDURE.--THE BOARD MAY INVESTIGATE ALL MEANS OF
    19  TRANSPORTATION AND THE MANAGEMENT THEREOF, THE ENFORCEMENT OF
    20  ITS RESOLUTIONS, RULES AND REGULATIONS, AND THE ACTION, CONDUCT,
    21  AND EFFICIENCY OF ALL OFFICERS, AGENTS AND EMPLOYEES OF THE
    22  AUTHORITY. IN THE CONDUCT OF INVESTIGATIONS, THE BOARD MAY HOLD
    23  PUBLIC HEARINGS ON ITS OWN MOTION AND SHALL DO SO ON COMPLAINT
    24  OR PETITION OF ANY MUNICIPALITY IN THE METROPOLITAN AREA. EACH
    25  MEMBER OF THE BOARD SHALL HAVE POWER TO ADMINISTER OATHS, AND
    26  THE SECRETARY, BY ORDER OF THE BOARD, SHALL ISSUE SUBPOENAS TO
    27  SECURE THE ATTENDANCE AND TESTIMONY OF WITNESSES AND THE
    28  PRODUCTION OF BOOKS AND PAPERS RELEVANT TO INVESTIGATIONS AND TO
    29  ANY HEARING BEFORE THE BOARD OR ANY MEMBER THEREOF, OR ANY
    30  OFFICERS' COMMITTEE OR EMPLOYEES' COMMITTEE, APPOINTED BY THE
    19930H0878B1976                 - 31 -

     1  BOARD TO HEAR ANY COMPLAINT OF AN OFFICER OR EMPLOYEE WHO HAS
     2  BEEN DISCHARGED OR DEMOTED.
     3     (B)  ENFORCEMENT.--ANY COURT OF RECORD OF THIS COMMONWEALTH,
     4  OR ANY JUDGE THEREOF, EITHER IN TERM TIME OR VACATION, UPON
     5  APPLICATION OF THE BOARD OR ANY MEMBER THEREOF, MAY, IN HIS
     6  DISCRETION, COMPEL THE ATTENDANCE OF WITNESSES, THE PRODUCTION
     7  OF BOOKS AND PAPERS AND GIVING OF TESTIMONY BEFORE THE BOARD OR
     8  BEFORE ANY MEMBER THEREOF, OR ANY OFFICERS' COMMITTEE OR
     9  EMPLOYEES' COMMITTEE APPOINTED BY THE BOARD BY ATTACHMENT FOR
    10  CONTEMPT OR OTHERWISE, IN THE SAME MANNER AS THE PRODUCTION OF
    11  EVIDENCE MAY BE COMPELLED BEFORE THE COURT.
    12  § 1728.  CONFLICTS OF INTEREST.
    13     EVERY MEMBER OF THE BOARD AND EVERY EMPLOYEE OF THE AUTHORITY
    14  SHALL BE SUBJECT TO THE ACT OF JULY 19, 1957 (P.L.1017, NO.451),
    15  KNOWN AS THE STATE ADVERSE INTEREST ACT, AND THE ACT OF OCTOBER
    16  4, 1978 (P.L.883, NO.170), REFERRED TO AS THE PUBLIC OFFICIAL
    17  AND EMPLOYEE ETHICS LAW.
    18                            SUBCHAPTER C
    19                         POWERS AND DUTIES
    20  SEC.
    21  1741.  GENERAL POWERS.
    22  1742.  POWER TO ACQUIRE PROPERTY.
    23  1743.  POWER TO CONTRACT WITH PUBLIC UTILITIES.
    24  1744.  POWER OF EMINENT DOMAIN.
    25  1745.  USE OF WAYS OCCUPIED BY PASSENGER UTILITIES.
    26  1746.  TRANSFER OF RECORDS BY PENNSYLVANIA PUBLIC UTILITY
    27         COMMISSION.
    28  1747.  ACQUISITION OF EQUIPMENT.
    29  1748.  TRANSFERS OF FACILITIES OR THINGS OF VALUE TO ANY
    30         AUTHORITY.
    19930H0878B1976                 - 32 -

     1  1749.  COMPACTS TO FINANCE OPERATIONS AND PARTICULAR PROJECTS.
     2  1750.  CONTRACTS, PROCUREMENT AND SALE OF PROPERTY.
     3  1751.  FISCAL PROVISIONS.
     4  1752.  FINANCIAL STATEMENTS AND AUDIT.
     5  1753.  AID FROM FEDERAL GOVERNMENT.
     6  § 1741.  GENERAL POWERS.
     7     (A)  POWERS ENUMERATED.--AN AUTHORITY SHALL HAVE AND MAY
     8  EXERCISE ALL POWERS NECESSARY OR CONVENIENT FOR THE CARRYING OUT
     9  OF THE PURPOSES OF THIS CHAPTER, INCLUDING THE FOLLOWING RIGHTS,
    10  POWERS AND DUTIES:
    11         (1)  TO HAVE PERPETUAL EXISTENCE.
    12         (2)  TO SUE AND BE SUED, IMPLEAD AND BE IMPLEADED,
    13     COMPLAIN AND DEFEND IN ALL COURTS, TO PETITION THE INTERSTATE
    14     COMMERCE COMMISSION OR ANY OTHER FEDERAL OR STATE REGULATORY
    15     BODY OR JOIN IN ANY PROCEEDING BEFORE ANY SUCH BODIES OR
    16     COURTS IN ANY MATTER AFFECTING THE OPERATION OF ANY PROJECT
    17     OF THE AUTHORITY.
    18         (3)  TO ADOPT AND USE AND ALTER AT WILL A CORPORATE SEAL.
    19         (4)  TO ESTABLISH A PRINCIPAL OFFICE WITHIN THE COUNTY OF
    20     THE FIRST CLASS AND SUCH OTHER OFFICE OR OFFICES AS MAY BE
    21     NECESSARY FOR THE CARRYING ON OF ITS DUTIES.
    22         (5)  TO MAKE AND FROM TIME TO TIME TO AMEND AND REPEAL
    23     BYLAWS, RULES, REGULATIONS AND RESOLUTIONS.
    24         (6)  TO CONDUCT EXAMINATIONS AND INVESTIGATIONS AND TO
    25     HEAR TESTIMONY AND TAKE PROOF, UNDER OATH OR AFFIRMATION AT
    26     PUBLIC OR PRIVATE HEARINGS, AS PROVIDED IN THIS CHAPTER, ON
    27     ANY MATTER MATERIAL TO THE PUBLIC PURPOSES SET FORTH IN THIS
    28     CHAPTER.
    29         (7)  TO APPOINT OFFICERS, AGENTS, EMPLOYEES AND SERVANTS
    30     AND TO PRESCRIBE THEIR DUTIES AND FIX THEIR COMPENSATION,
    19930H0878B1976                 - 33 -

     1     SUBJECT, HOWEVER, TO SPECIFIC PROVISIONS OF THIS CHAPTER.
     2     MEMBERS OF THE BOARD, AS WELL AS OFFICERS AND EMPLOYEES OF
     3     THE AUTHORITY, SHALL NOT BE LIABLE PERSONALLY ON ANY
     4     OBLIGATIONS, INCLUDING, BUT NOT LIMITED TO, BONDS OF THE
     5     AUTHORITY.
     6         (8)  TO ENTER INTO CONTRACTS OF GROUP INSURANCE FOR THE
     7     BENEFIT OF ITS EMPLOYEES OR TO CONTINUE ANY EXISTING
     8     INSURANCE AND/OR PENSION OR RETIREMENT SYSTEM AND/OR ANY
     9     OTHER EMPLOYEE BENEFIT ARRANGEMENT COVERING EMPLOYEES OF AN
    10     ACQUIRED EXISTING TRANSPORTATION SYSTEM, AND/OR TO SET UP A
    11     RETIREMENT OR PENSION FUND OR ANY OTHER EMPLOYEE BENEFIT
    12     ARRANGEMENT FOR ITS EMPLOYEES.
    13         (9)  TO PROCURE SUCH INSURANCE, LETTERS OF CREDIT,
    14     LIQUIDITY FACILITIES, GUARANTIES AND SURETIES CONTAINING SUCH
    15     COVERAGES, INCLUDING, BUT NOT LIMITED TO, CONTRACTS INSURING
    16     OR GUARANTEEING THE TIMELY PAYMENT IN FULL OF PRINCIPAL OF
    17     AND INTEREST ON BONDS OF THE AUTHORITY, OR PROVIDING
    18     LIQUIDITY FOR PURCHASE OF BONDS OF THE AUTHORITY IN SUCH
    19     AMOUNTS, FROM SUCH INSURERS, SURETIES, GUARANTORS OR OTHER
    20     PERSONS, AS THE AUTHORITY MAY DETERMINE TO BE NECESSARY OR
    21     DESIRABLE FOR ITS PURPOSES.
    22         (10)  TO SELF-INSURE OR OTHERWISE PROVIDE FOR THE
    23     INSURANCE OF ANY PROPERTY OR OPERATIONS OF THE AUTHORITY
    24     AGAINST ANY RISKS OR HAZARDS.
    25         (11)  TO INVEST ANY FUNDS HELD IN RESERVE OR SINKING
    26     FUNDS, OR ANY FUNDS NOT REQUIRED FOR IMMEDIATE DISBURSEMENT,
    27     AS AUTHORIZED BY SECTION 1761 (RELATING TO MANAGEMENT OF
    28     FUNDS).
    29         (12)  TO ACQUIRE BY PURCHASE, GIFT OR OTHERWISE, HOLD,
    30     LEASE AS LESSEE AND USE ANY FRANCHISE, RIGHT OR PROPERTY,
    19930H0878B1976                 - 34 -

     1     REAL, PERSONAL OR MIXED, TANGIBLE OR INTANGIBLE, OR ANY
     2     INTEREST OR RIGHT THEREIN NECESSARY, DESIRABLE OR USEFUL FOR
     3     CARRYING OUT THE PURPOSES OF THE AUTHORITY; TO SELL, LEASE AS
     4     LESSOR, TRANSFER, DISPOSE OF OR OTHERWISE CONVEY ANY
     5     FRANCHISE, RIGHT OR PROPERTY, REAL, PERSONAL OR MIXED,
     6     TANGIBLE OR INTANGIBLE, OR ANY INTEREST OR RIGHT THEREIN, AT
     7     ANY TIME ACQUIRED BY IT; OR TO EXCHANGE THE SAME FOR OTHER
     8     PROPERTY OR RIGHTS WHICH ARE USEFUL FOR ITS PURPOSES.
     9         (13)  TO ACQUIRE BY EMINENT DOMAIN ANY REAL OR PERSONAL
    10     PROPERTY, INCLUDING IMPROVEMENTS, FIXTURES AND FRANCHISES OF
    11     ANY KIND WHATEVER, FOR THE PUBLIC PURPOSES SET FORTH IN THIS
    12     CHAPTER IN THE MANNER PROVIDED IN THIS CHAPTER.
    13         (14)  TO ACQUIRE BY PURCHASE, LEASE OR OTHERWISE AND TO
    14     CONSTRUCT, IMPROVE, MAINTAIN, REPAIR AND OPERATE PASSENGER
    15     TRANSPORTATION FACILITIES AND A TRANSPORTATION SYSTEM OR
    16     SYSTEMS OR PORTIONS THEREOF, AND TO PAY ALL COSTS THEREOF,
    17     INCLUDING, BUT NOT LIMITED TO, THE COSTS OF ALL WORK AND
    18     MATERIALS INCIDENTAL THERETO AND ALL AMOUNTS NECESSARY TO
    19     PLACE ANY PROJECT INTO OPERATION.
    20         (15)  TO FIX, ALTER, CHARGE AND COLLECT FARES, RATES,
    21     RENTALS AND OTHER CHARGES FOR ITS FACILITIES BY ZONES OR
    22     OTHERWISE AT REASONABLE RATES TO BE DETERMINED EXCLUSIVELY BY
    23     IT, SUBJECT TO APPEAL, AS PROVIDED IN THIS CHAPTER, FOR THE
    24     PURPOSE OF PROVIDING FOR THE PAYMENT OF ALL EXPENSES AND
    25     OBLIGATIONS OF THE AUTHORITY, INCLUDING THE ACQUISITION,
    26     CONSTRUCTION, IMPROVEMENT, REPAIR, MAINTENANCE AND OPERATION
    27     OF ITS FACILITIES AND PROPERTIES, THE MAINTENANCE AND
    28     OPERATION OF A TRANSPORTATION SYSTEM, THE PAYMENT OF THE
    29     PRINCIPAL AND INTEREST ON ITS OBLIGATIONS, AND TO COMPLY
    30     FULLY WITH THE TERMS AND PROVISIONS OF ANY AGREEMENTS MADE
    19930H0878B1976                 - 35 -

     1     WITH THE PURCHASERS OF BONDS OR OBLIGEES OF THE AUTHORITY. AN
     2     AUTHORITY SHALL DETERMINE BY ITSELF, EXCLUSIVELY, THE
     3     FACILITIES TO BE OPERATED BY IT, THE SERVICES TO BE AVAILABLE
     4     AND THE RATES TO BE CHARGED THEREFOR. PUBLIC HEARINGS SHALL
     5     BE HELD PRIOR TO SUCH DETERMINATIONS WHEN CHANGES ARE
     6     PROPOSED WHICH WOULD INCREASE OR DECREASE FARES, ESTABLISH
     7     NEW ROUTES, ELIMINATE ROUTES, CHANGE ROUTES OR MAKE
     8     SUBSTANTIAL CHANGES IN THE LEVEL OF SERVICE SCHEDULED.
     9     HOWEVER, PUBLIC HEARINGS NEED NOT BE HELD FOR ROUTE CHANGES,
    10     FARES OR LEVEL OF SCHEDULED SERVICE IN THE CASE OF TEMPORARY
    11     CHANGES NOT EXCEEDING 90 DAYS CAUSED BY EMERGENCIES;
    12     PROMOTIONAL FARES OR SERVICES, OR EXPERIMENTAL SERVICES,
    13     ADOPTED TO INCREASE REVENUE AND RIDERSHIP, SUBJECT TO BOARD
    14     RESOLUTION; OR SPECIAL EVENTS IN WHICH THE AUTHORITY
    15     PARTICIPATES AS PROVIDED BY BOARD RESOLUTION. NOTICE OF
    16     PUBLIC HEARINGS SHALL BE PUBLISHED IN TWO NEWSPAPERS OF
    17     GENERAL CIRCULATION AND A PUBLICATION SPECIFICALLY DESIGNED
    18     TO REACH MINORITIES NOT FEWER THAN 30 CALENDAR DAYS PRIOR TO
    19     SUCH HEARING. ANY PERSON AGGRIEVED BY ANY RATE OR SERVICE OR
    20     CHANGE OF SERVICE FIXED BY THE AUTHORITY MAY BRING AN APPEAL
    21     AGAINST THE AUTHORITY FOR THE PURPOSE OF PROTESTING AGAINST
    22     ANY SUCH CHARGE, SERVICE OR CHANGE OF SERVICE. THE GROUNDS
    23     FOR THE SUITS SHALL BE RESTRICTED TO A MANIFEST AND FLAGRANT
    24     ABUSE OF DISCRETION OR AN ERROR OF LAW; OTHERWISE, ALL
    25     ACTIONS BY THE AUTHORITY SHALL BE FINAL. UPON THE FINDING OF
    26     AN ERROR OF LAW OR A MANIFEST AND FLAGRANT ABUSE OF
    27     DISCRETION, THE COURT SHALL ISSUE AN ORDER SETTING FORTH THE
    28     ABUSE OR ERROR AND RETURNING THE MATTER TO THE AUTHORITY FOR
    29     SUCH FURTHER ACTION AS SHALL BE NOT INCONSISTENT WITH THE
    30     FINDINGS OF THE COURT. NO APPEAL FROM THE ACTION OF THE
    19930H0878B1976                 - 36 -

     1     AUTHORITY OR FROM THE DECISION OF THE COURT OF COMMON PLEAS
     2     SHALL ACT AS A SUPERSEDEAS, EXCEPT WHEN TAKEN BY THE
     3     AUTHORITY OR, IN OTHER CASES, WHEN SPECIALLY GRANTED AFTER A
     4     FINDING THAT IRREPARABLE AND EXTRAORDINARY HARM WILL RESULT.
     5     THE COURTS SHALL GIVE PRIORITY TO ALL APPEALS, AND NO BOND
     6     SHALL BE REQUIRED OF ANY PARTY INSTITUTING SUCH AN APPEAL
     7     UNDER THE PROVISIONS OF THIS SECTION.
     8         (16)  TO FIX RATES, FARES AND CHARGES IN SUCH MANNER THAT
     9     THEY SHALL BE AT ALL TIMES SUFFICIENT IN THE AGGREGATE, AND
    10     IN CONJUNCTION WITH ANY GRANTS FROM FEDERAL OR OTHER SOURCES
    11     AND ANY OTHER INCOME AVAILABLE TO THE AUTHORITY, TO PROVIDE
    12     FUNDS FOR THE PAYMENT OF ALL OPERATING COSTS AND EXPENSES
    13     WHICH SHALL BE INCURRED BY THE AUTHORITY, FOR THE PAYMENT OF
    14     THE INTEREST ON AND PRINCIPAL OF ALL BONDS PAYABLE FROM THE
    15     REVENUES AND TO MEET ALL OTHER CHARGES UPON SUCH REVENUES AS
    16     PROVIDED BY ANY TRUST AGREEMENT EXECUTED BY THE AUTHORITY IN
    17     CONNECTION WITH THE ISSUANCE OF BONDS.
    18         (17)  TO ENTER INTO AGREEMENTS WITH THE UNITED STATES
    19     POSTAL SERVICE, OR ANY SUCCESSOR ORGANIZATION, FOR THE
    20     TRANSPORTATION OF MAIL AND PAYMENT OF COMPENSATION TO THE
    21     AUTHORITY IN LIEU OF FARES FOR THE TRANSPORTATION OF LETTER
    22     CARRIERS IN UNIFORM AT ALL TIMES. THE BOARD MAY PROVIDE FREE
    23     TRANSPORTATION FOR FIREFIGHTERS IN UNIFORM AND POLICE
    24     OFFICERS WHEN IN UNIFORM OR WHEN NOT IN UNIFORM, UPON
    25     PRESENTATION OF IDENTIFICATION AS POLICE OFFICERS. THE BOARD
    26     MAY PROVIDE FREE TRANSPORTATION FOR EMPLOYEES OF THE
    27     AUTHORITY WHEN IN UNIFORM OR UPON PRESENTATION OF
    28     IDENTIFICATION AS SUCH EMPLOYEES, PROVIDE FREE TRANSPORTATION
    29     TO DEPENDENTS OF EMPLOYEES OF THE AUTHORITY UPON PRESENTATION
    30     OF IDENTIFICATION AS PROVIDED BY THE BOARD AND ENTER INTO
    19930H0878B1976                 - 37 -

     1     RECIPROCAL ARRANGEMENTS TO PROVIDE FREE TRANSPORTATION TO
     2     EMPLOYEES AND DEPENDENTS OF EMPLOYEES OF OTHER TRANSPORTATION
     3     AGENCIES.
     4         (18)  TO BORROW MONEY FROM ANY PERSON FOR THE PURPOSE OF
     5     PAYING THE COSTS OF ANY PROJECT OR IN ANTICIPATION OF THE
     6     RECEIPT OF INCOME OF THE AUTHORITY AND TO EVIDENCE THE SAME;
     7     MAKE AND ISSUE BONDS OF THE AUTHORITY; SECURE THE PAYMENT OF
     8     SUCH BONDS OR ANY PART THEREOF, BY PLEDGE OF OR SECURITY
     9     INTEREST, WHICH MAY BE A SENIOR, PARITY OR SUBORDINATED
    10     PLEDGE OR SECURITY INTEREST, IN ALL OR ANY OF ITS REVENUES,
    11     RENTALS, RECEIPTS AND CONTRACT RIGHTS AND ALL OR ANY OF ITS
    12     MOVEABLE EQUIPMENT AND OTHER TANGIBLE PERSONAL PROPERTY; TO
    13     SECURE THE PAYMENT OF SUCH BONDS OR ANY PART THEREOF BY A
    14     MORTGAGE LIEN ON REAL PROPERTY OF THE AUTHORITY OR ANY
    15     INTEREST THEREIN, PROVIDED, HOWEVER, THAT NO SUCH LIEN SHALL
    16     EXTEND TO REAL PROPERTY OF THE AUTHORITY COMPRISING RIGHTS OF
    17     WAY, EASEMENTS OR ANY OTHER INTERESTS IN REAL PROPERTY USED
    18     OR USEFUL FOR PASSAGE OF TRANSPORTATION VEHICLES OR NECESSARY
    19     FOR THE SAFE AND SOUND ROUTING OR CONTROL OF TRANSPORTATION
    20     VEHICLES; ISSUE BONDS ON AN UNSECURED BASIS; ISSUE BONDS ON A
    21     LIMITED RECOURSE OR NONRECOURSE BASIS; ISSUE BONDS UNDER A
    22     MASTER TRUST INDENTURE; MAKE AGREEMENTS WITH THE PURCHASERS
    23     OR HOLDERS OF BONDS OR WITH OTHER OBLIGEES OF THE AUTHORITY
    24     IN CONNECTION WITH ANY BONDS, WHETHER ISSUED OR TO BE ISSUED,
    25     AS THE AUTHORITY SHALL DEEM ADVISABLE, WHICH AGREEMENTS SHALL
    26     CONSTITUTE CONTRACTS WITH THE PURCHASERS OR OBLIGEES OF THE
    27     AUTHORITY; OBTAIN CREDIT ENHANCEMENT OR LIQUIDITY FACILITIES
    28     IN CONNECTION WITH ANY BONDS AS THE AUTHORITY SHALL DETERMINE
    29     TO BE ADVANTAGEOUS; AND, IN GENERAL, PROVIDE FOR THE SECURITY
    30     FOR THE BONDS AND THE RIGHTS OF THE OBLIGEES OF THE
    19930H0878B1976                 - 38 -

     1     AUTHORITY.
     2         (19)  TO ACCEPT GRANTS AND TO ENTER INTO CONTRACTS,
     3     LEASES, SUBLEASES, LICENSES OR OTHER TRANSACTIONS WITH ANY
     4     PERSON ON SUCH TERMS AND FOR SUCH PURPOSES AS THE AUTHORITY
     5     SHALL DEEM PROPER.
     6         (20)  TO NEGOTIATE AND ENTER INTO ARRANGEMENTS, INCLUDING
     7     FUTURES CONTRACTS, FORWARD CONTRACTS AND CAP, COLLAR,
     8     CORRIDOR, FLOOR OR CEILING AGREEMENTS, WITH RESPECT TO
     9     ESSENTIAL SUPPLIES AND COMMODITIES FOR AN AUTHORITY FOR THE
    10     PURPOSE OF REDUCING THE RISK TO THE AUTHORITY OF PRICE
    11     FLUCTUATIONS FOR THE SUPPLIES AND COMMODITIES.
    12         (21)  TO MAKE AND EXECUTE ALL CONTRACTS AND OTHER
    13     INSTRUMENTS NECESSARY OR CONVENIENT TO THE EXERCISE OF THE
    14     POWERS OF THE AUTHORITY, AND ANY CONTRACT OR INSTRUMENT WHEN
    15     SIGNED BY THE CHAIRMAN OR VICE CHAIRMAN AND SECRETARY OR
    16     ASSISTANT SECRETARY OR TREASURER OR ASSISTANT TREASURER OF
    17     THE AUTHORITY SHALL BE HELD TO HAVE BEEN PROPERLY EXECUTED
    18     FOR AND ON ITS BEHALF. WITHOUT LIMITING THE GENERALITY OF THE
    19     FOREGOING, THE AUTHORITY IS ALSO AUTHORIZED TO ENTER INTO
    20     CONTRACTS FOR THE PURCHASE, LEASE, OPERATION OR MANAGEMENT OF
    21     TRANSPORTATION FACILITIES WITHIN OR WITHOUT THE METROPOLITAN
    22     AREA OR WITHIN OR WITHOUT THIS COMMONWEALTH. WHENEVER THE
    23     FACILITIES ARE LOCATED OUTSIDE THE METROPOLITAN AREA, THEY
    24     SHALL BE SUBJECT TO THE JURISDICTION OF THE APPROPRIATE
    25     REGULATORY AGENCIES.
    26         (22)  TO ENTER INTO CONTRACTS WITH GOVERNMENT AGENCIES
    27     AND FEDERAL AGENCIES ON SUCH TERMS AS THE AUTHORITY SHALL
    28     DEEM PROPER FOR THE USE OF ANY FACILITY OR OTHER REAL OR
    29     PERSONAL PROPERTY OF THE AUTHORITY, AND FIXING THE AMOUNT TO
    30     BE PAID THEREFOR.
    19930H0878B1976                 - 39 -

     1         (23)  TO AGREE WITH THE CONSTITUENT MUNICIPALITIES IN
     2     WHICH IT OPERATES FOR THE LEASE OF PRESENT AND FUTURE
     3     MUNICIPAL PROPERTY, WHERE SUCH A LEASE WOULD BE ADVANTAGEOUS
     4     TO THE AUTHORITY IN THE FINANCING OR THE OPERATION OF
     5     IMPROVED PASSENGER TRANSPORTATION SERVICE.
     6         (24)  TO EXPLORE ALTERNATIVE MEANS OF RAISING REVENUE OR
     7     REDUCING EXPENSES, INCLUDING, BUT NOT LIMITED TO, REAL ESTATE
     8     LEASES AND RENTALS, EQUIPMENT LEASES AND RENTALS, CONTRACTING
     9     OF SERVICES, THE SOLICITATION OF COMPETITIVE BIDS AND THE
    10     AWARDING OF CONTRACTS TO THE HIGHEST RESPONSIVE, RESPONSIBLE
    11     BIDDER FOR BOTH INTERIOR AND EXTERIOR ADVERTISING ON ALL
    12     AUTHORITY EQUIPMENT ON WHICH THE PUBLIC IS CHARGED A FARE FOR
    13     RIDING. HOWEVER, ON RAIL PASSENGER UNITS ONLY BIDS FOR
    14     INTERIOR ADVERTISING SHALL BE SOLICITED. NOTHING IN THIS
    15     CHAPTER OR IN ANY OTHER LAW OF THIS COMMONWEALTH SHALL
    16     PRECLUDE THE NEGOTIATION AND EXECUTION OF CONTRACTS WITH
    17     RESPECT TO REAL ESTATE-RELATED MATTERS IN ACCORDANCE WITH AND
    18     SUBJECT SOLELY TO THE PROVISIONS OF THIS PARAGRAPH. THE
    19     GENERAL MANAGER MAY RECOMMEND IN WRITING THAT THE BOARD MAKE
    20     A FINDING OF SPECIAL OPPORTUNITY WITH RESPECT TO A REAL
    21     ESTATE-RELATED MATTER. THE BOARD SHALL CONSIDER THE GENERAL
    22     MANAGER'S RECOMMENDATION AT A PUBLIC MEETING. THE NOTICE
    23     GIVEN IN ACCORDANCE WITH THE ACT OF JULY 3, 1986 (P.L.388,
    24     NO.84), KNOWN AS THE SUNSHINE ACT, WITH RESPECT TO SUCH
    25     MEETING SHALL STATE THAT THE BOARD WILL CONSIDER MAKING A
    26     FINDING OF SPECIAL OPPORTUNITY AT SUCH MEETING AND SHALL
    27     DESCRIBE THE NATURE OF THE PROPOSED FINDING OF SPECIAL
    28     OPPORTUNITY. ANY FINDING OF SPECIAL OPPORTUNITY SHALL BE
    29     APPROVED BY THE BOARD IN ACCORDANCE WITH THE PROVISIONS OF
    30     SECTION 1715 (RELATING TO MEETINGS, QUORUM, OFFICERS AND
    19930H0878B1976                 - 40 -

     1     RECORDS). THE BOARD SHALL ADOPT, BY RESOLUTION, A PROCESS
     2     UNDER WHICH THE AUTHORITY SHALL ENTER INTO CONTRACTS NEEDED
     3     TO IMPLEMENT A FINDING OF SPECIAL OPPORTUNITY. THE PROCESS
     4     ADOPTED BY THE BOARD SHALL PROVIDE A METHOD OF PREQUALIFYING
     5     PROSPECTIVE CONTRACTING PARTIES, WHERE APPROPRIATE; FOR THE
     6     REASONABLE NOTIFICATION OF PROSPECTIVE CONTRACTING PARTIES OF
     7     THE ISSUANCE OF REQUESTS FOR PROPOSALS AND THE REASONABLE
     8     OPPORTUNITY FOR QUALIFIED PROSPECTIVE CONTRACTING PARTIES TO
     9     SUBMIT PROPOSALS; FOR REVIEW OF PROPOSALS FROM QUALIFIED
    10     PROSPECTIVE CONTRACTING PARTIES; FOR THE NEGOTIATION OF
    11     CONTRACTS WITH ONE OR MORE PROSPECTIVE CONTRACTING PARTIES;
    12     FOR AWARD OF CONTRACTS ON THE BASIS OF EVALUATION OF THE
    13     CHARACTERISTICS OF THE PROPOSALS; AND FOR GIVING SUCH WEIGHT
    14     TO THE VARIOUS CHARACTERISTICS OF ANY PROPOSAL AS THE BOARD
    15     SHALL DETERMINE IS IN THE BEST INTEREST OF THE AUTHORITY. THE
    16     CHARACTERISTICS BY WHICH PROPOSALS MAY BE EVALUATED UNDER A
    17     FINDING OF SPECIAL OPPORTUNITY MAY INCLUDE THE LIKELY
    18     COMPLEXITY OF THE TRANSACTION; THE AMOUNT OF INVESTMENT ANY
    19     SELECTED CONTRACTING PARTY WILL BE REQUIRED TO MAKE OR OFFERS
    20     TO MAKE IN THE REAL ESTATE-RELATED MATTER; THE EXPERIENCE AND
    21     PRIOR SUCCESS OF THE PROPOSED CONTRACTING PARTY IN OTHER
    22     SIMILAR DEALINGS WITH THE SAME TYPE OF REAL ESTATE-RELATED
    23     MATTERS OR WITH THE AUTHORITY; THE QUALITY, FEASIBILITY AND
    24     POTENTIAL FOR ECONOMIC SUCCESS OF THE PROPOSAL; ANY COST OR
    25     POTENTIAL RETURN TO THE AUTHORITY; THE ECONOMIC RELIABILITY
    26     AND FINANCIAL VIABILITY OF THE PROPOSED CONTRACTING PARTY;
    27     THE COMPATIBILITY OF THE PROPOSAL WITH THE AUTHORITY'S BASIC
    28     FUNCTION AS A PUBLIC TRANSPORTATION PROVIDER; THE DATE BY
    29     WHICH THE PROPOSED CONTRACTING PARTY AGREES TO COMPLETE THE
    30     REAL ESTATE-RELATED MATTER; AND OTHER FACTORS WHICH THE BOARD
    19930H0878B1976                 - 41 -

     1     SHALL SPECIFY. THE AUTHORITY SHALL MAKE AVAILABLE A COPY OF
     2     THE PROCESS ADOPTED BY THE BOARD TO ANY PERSON REQUESTING A
     3     COPY OF THE PROCESS. THE GENERAL MANAGER MAY MAKE A WRITTEN
     4     RECOMMENDATION TO THE BOARD CONCERNING THE AWARD OF A
     5     CONTRACT UNDER A FINDING OF SPECIAL OPPORTUNITY. THE GENERAL
     6     MANAGER'S RECOMMENDATION SHALL INCLUDE THE IDENTITY OF THE
     7     PROSPECTIVE CONTRACTING PARTY OR PARTIES, THE PURPOSE OF THE
     8     CONTRACT, THE SUBSTANCE OF THE FINDING OF SPECIAL
     9     OPPORTUNITY, THE SUBSTANCE AND TERM OF THE PROPOSED CONTRACT,
    10     THE IDENTITIES OF ANY OTHER PROSPECTIVE CONTRACTING PARTIES
    11     WHO SUBMITTED PROPOSALS AND THE CRITERIA UPON WHICH THE
    12     GENERAL MANAGER'S RECOMMENDATION WAS MADE AND THE REASONS FOR
    13     SELECTING THE PROSPECTIVE CONTRACTING PARTY. UPON THE WRITTEN
    14     RECOMMENDATION OF THE GENERAL MANAGER, THE BOARD MAY AWARD
    15     CONTRACTS UNDER THIS PARAGRAPH AFTER APPROVING THE AWARDING
    16     OF THE CONTRACT BY A RESOLUTION ADOPTED AT A PUBLIC MEETING.
    17     THE NOTICE GIVEN IN ACCORDANCE WITH THE SUNSHINE ACT WITH
    18     RESPECT TO SUCH MEETING SHALL STATE THAT THE BOARD WILL
    19     CONSIDER AWARDING A CONTRACT UNDER A FINDING OF SPECIAL
    20     OPPORTUNITY AT SUCH MEETING AND SHALL DESCRIBE THE SUBJECT
    21     MATTER OF SUCH PROPOSED CONTRACT. THE AUTHORITY SHALL BY
    22     APRIL 15 OF EACH YEAR SUBMIT A REPORT TO THE DEPARTMENT. THE
    23     REPORT SHALL DETAIL THE ACTIONS OF THE AUTHORITY IN EXPLORING
    24     ALTERNATE MEANS OF RAISING REVENUE AND REDUCING EXPENSES. THE
    25     DEPARTMENT SHALL REVIEW THE REPORT AND ISSUE ITS FINDINGS AND
    26     RECOMMENDATIONS TO THE APPROPRIATIONS COMMITTEE AND THE
    27     TRANSPORTATION COMMITTEE OF THE SENATE AND THE APPROPRIATIONS
    28     COMMITTEE AND THE TRANSPORTATION COMMITTEE OF THE HOUSE OF
    29     REPRESENTATIVES NO LATER THAN 30 DAYS AFTER RECEIPT OF SUCH
    30     REPORT FOR REVIEW AND CONSIDERATION OF FUTURE FUNDING BY SUCH
    19930H0878B1976                 - 42 -

     1     COMMITTEES. WHERE ANY ALTERNATE MEANS HAVE BEEN REJECTED, THE
     2     AUTHORITY SHALL DEMONSTRATE THAT THE FEASIBILITY AND COST-
     3     EFFECTIVENESS OF THAT ALTERNATE MEANS HAVE BEEN CONSIDERED.
     4     AS USED IN THIS PARAGRAPH, "FINDING OF SPECIAL OPPORTUNITY"
     5     SHALL MEAN A WRITTEN DETERMINATION BY THE BOARD THAT
     6     EXCLUSION OF A REAL ESTATE-RELATED MATTER FROM BIDDING
     7     PROCEDURES, AS PROVIDED IN THIS CHAPTER OR ANY OTHER LAW,
     8     WILL BE IN THE BEST INTEREST OF THE AUTHORITY AND WILL BE
     9     COMPATIBLE WITH THE AUTHORITY'S BASIC FUNCTION AS A PUBLIC
    10     TRANSPORTATION PROVIDER, CONSIDERING THE NATURE OF THE REAL
    11     ESTATE-RELATED MATTER WITH RESPECT TO WHICH THE AUTHORITY
    12     PROPOSES TO CONTRACT. ANY FINDING OF SPECIAL OPPORTUNITY
    13     SHALL INCLUDE THE BASIS ON WHICH THE FINDING OF SPECIAL
    14     OPPORTUNITY IS BEING MADE.
    15         (25)  TO LEASE PROPERTY OR CONTRACT FOR SERVICE,
    16     INCLUDING MANAGERIAL AND OPERATING SERVICE, WHENEVER IT CAN
    17     MORE EFFICIENTLY AND EFFECTIVELY SERVE THE PUBLIC BY SO
    18     DOING, RATHER THAN CONDUCTING ITS OWN OPERATIONS WITH ITS OWN
    19     PROPERTY.
    20         (26)  TO HAVE THE RIGHT TO USE ANY PUBLIC ROAD, STREET,
    21     WAY, HIGHWAY, BRIDGE OR TUNNEL FOR THE OPERATION OF A
    22     TRANSPORTATION SYSTEM WITHIN THE METROPOLITAN AREA. IN ALL
    23     CASES INVOLVING THE FACILITIES OF A RAILROAD, ANY OPERATIONS
    24     OF WHICH EXTEND BEYOND THE METROPOLITAN AREA, THE EXERCISE OF
    25     THIS RIGHT BY THE AUTHORITY SHALL BE SUBJECT TO THE
    26     JURISDICTION OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION
    27     UNDER TITLE 66 (RELATING TO PUBLIC UTILITIES) ONLY TO THE
    28     EXTENT THAT THE OPERATIONS EXTEND BEYOND THE METROPOLITAN
    29     AREA.
    30         (27)  TO ACT AS AGENT OF ANY GOVERNMENT AGENCY OR ANY
    19930H0878B1976                 - 43 -

     1     FEDERAL AGENCY FOR THE PUBLIC PURPOSES SET FORTH IN THIS
     2     CHAPTER.
     3         (28)  TO MAKE AVAILABLE TO ANY GOVERNMENT AGENCY THE
     4     RECOMMENDATIONS OF THE AUTHORITY AFFECTING ANY AREA IN THE
     5     AUTHORITY'S FIELD OF OPERATION OR PROPERTY THEREIN, WHICH IT
     6     MAY DEEM LIKELY TO PROMOTE THE PUBLIC HEALTH, MORALS, SAFETY
     7     AND WELFARE.
     8         (29)  TO FORM PLANS FOR THE IMPROVEMENT OF MASS
     9     TRANSPORTATION AND THE OPERATION OF A TRANSPORTATION SYSTEM
    10     IN ORDER TO PROMOTE THE ECONOMIC DEVELOPMENT OF THE
    11     METROPOLITAN AREA IN WHICH THE TRANSPORTATION AUTHORITY
    12     OPERATES, TO MAKE RECOMMENDATIONS CONCERNING MASS
    13     TRANSPORTATION FACILITIES WHICH THE AUTHORITY DOES NOT OWN OR
    14     OPERATE, TO MAKE RECOMMENDATIONS CONCERNING THROUGHWAYS AND
    15     ARTERIAL HIGHWAY CONNECTIONS TO THE DEPARTMENT AND TO OTHER
    16     APPROPRIATE GOVERNMENTAL BODIES AND OTHERWISE TO COOPERATE
    17     WITH ALL SUCH GOVERNMENTAL BODIES. THE AUTHORITY SHALL GIVE
    18     ADVANCE NOTICE TO THE DEPARTMENT OF ANY PLANS WHICH IT MAY
    19     HAVE FOR THE OCCUPATION OR USE OF ANY PART OF ANY STATE
    20     HIGHWAY.
    21         (30)  TO REHABILITATE, RECONSTRUCT AND EXTEND AS POSSIBLE
    22     ALL PORTIONS OF ANY TRANSPORTATION SYSTEM ACQUIRED BY THE
    23     AUTHORITY AND TO MAINTAIN AT ALL TIMES A FAST, RELIABLE AND
    24     ECONOMICAL TRANSPORTATION SYSTEM SUITABLE AND ADAPTED TO THE
    25     NEEDS OF THE MUNICIPALITIES SERVED BY THE AUTHORITY AND FOR
    26     SAFE, COMFORTABLE AND CONVENIENT SERVICE. TO THAT END, THE
    27     BOARD SHALL MAKE EVERY EFFORT TO UTILIZE HIGH-SPEED RIGHTS-
    28     OF-WAY, PRIVATE OR OTHERWISE, TO THE MAXIMUM EXTENT
    29     PRACTICABLE TO AVOID AIR POLLUTION BY ITS VEHICLES, TO
    30     ABANDON NO PHYSICAL PROPERTY WHICH THE AUTHORITY HAS
    19930H0878B1976                 - 44 -

     1     DETERMINED RETAINS CONTINUED USEFULNESS TO THE AUTHORITY AND
     2     TO EXTEND ITS RAIL AND HIGHWAY SERVICES INTO AREAS WHICH HAVE
     3     SUFFICIENT NEED FOR THEM TO ECONOMICALLY OR STRATEGICALLY
     4     JUSTIFY SUCH EXTENSION.
     5         (31)  TO ADOPT, CONSISTENT WITH THE POLICIES OF THIS ACT
     6     AND FROM TIME TO TIME AMEND A COMPREHENSIVE TRANSPORTATION
     7     PLAN. A PUBLIC HEARING SHALL BE CONDUCTED PRIOR TO ADOPTION
     8     OR AMENDMENT. NOTICE OF THE PUBLIC HEARING SHALL BE PUBLISHED
     9     IN TWO NEWSPAPERS OF GENERAL CIRCULATION AND A PUBLICATION
    10     SPECIFICALLY DESIGNED TO REACH MINORITIES NOT FEWER THAN 30
    11     DAYS PRIOR TO THE HEARING.
    12         (32)  TO DO ALL ACTS AND THINGS NECESSARY FOR THE
    13     PROMOTION OF ITS BUSINESS AND THE GENERAL WELFARE OF THE
    14     AUTHORITY TO CARRY OUT THE POWERS GRANTED TO IT BY THIS
    15     CHAPTER OR ANY OTHER STATUTE. NOTWITHSTANDING ANY OTHER
    16     PROVISION OF LAW, THE BOARD SHALL ADOPT PROCEDURES AND
    17     PRACTICES TO IMPLEMENT THE PROVISIONS OF THIS CHAPTER BY
    18     RESOLUTION OF THE BOARD.
    19     (B)  PUBLIC HIGHWAYS.--PRIVATE RIGHTS AND PROPERTY IN THE
    20  BEDS OF EXISTING PUBLIC HIGHWAYS VACATED IN ORDER TO FACILITATE
    21  THE PURPOSES OF THE AUTHORITY SHALL NOT BE DEEMED DESTROYED OR
    22  OUSTED BY REASON OF THE VACATION, BUT SHALL BE ACQUIRED OR
    23  RELOCATED BY THE AUTHORITY IN THE SAME MANNER AS OTHER PROPERTY.
    24     (C)  CERTAIN POWERS DENIED.--THE AUTHORITY SHALL HAVE NO
    25  POWER, AT ANY TIME OR IN ANY MANNER, TO PLEDGE THE CREDIT OR
    26  TAXING POWER OF THE COMMONWEALTH OR ANY OTHER GOVERNMENT AGENCY,
    27  NOR SHALL ANY OF THE AUTHORITY'S OBLIGATIONS BE DEEMED TO BE
    28  OBLIGATIONS OF THE COMMONWEALTH OR OF ANY OTHER GOVERNMENT
    29  AGENCY, NOR SHALL THE COMMONWEALTH OR ANY GOVERNMENT AGENCY BE
    30  LIABLE FOR THE PAYMENT OF PRINCIPAL OR INTEREST ON SUCH
    19930H0878B1976                 - 45 -

     1  OBLIGATIONS.
     2     (D)  NO POWER TO LEVY TAXES.--THE AUTHORITY SHALL NOT HAVE
     3  POWER TO LEVY TAXES FOR ANY PURPOSE WHATSOEVER.
     4  § 1742.  POWER TO ACQUIRE PROPERTY.
     5     (A)  GENERAL RULE.--
     6         (1)  THE AUTHORITY SHALL HAVE POWER TO ACQUIRE BY
     7     PURCHASE, CONDEMNATION, LEASE, GIFT OR OTHERWISE ALL OR ANY
     8     PART OF THE PROPERTY OF ANY PUBLIC UTILITY OPERATING A
     9     TRANSPORTATION SYSTEM WITHIN THE METROPOLITAN AREA,
    10     INCLUDING, BUT NOT LIMITED TO, THE PLANT, EQUIPMENT, PROPERTY
    11     RIGHTS IN PROPERTY RESERVE FUNDS, EMPLOYEES' PENSION OR
    12     RETIREMENT FUNDS, SPECIAL FUNDS, FRANCHISES, LICENSES,
    13     PATENTS, PERMITS, OPERATING RIGHTS AND PAPER DOCUMENTS AND
    14     RECORDS, WHICH PROPERTY SHALL BE LOCATED WITHIN THE
    15     METROPOLITAN AREA AND SHALL BE APPROPRIATE FOR THE PURPOSES
    16     FOR WHICH THE AUTHORITY IS ESTABLISHED, AS WELL AS ALL OR ANY
    17     PART OF THE RIGHT-OF-WAY, EQUIPMENT, FIXED FACILITIES AND
    18     OTHER PROPERTY OF ANY KIND OF ANY UTILITY, EXTENDING BEYOND
    19     THE BOUNDARIES OF THE METROPOLITAN AREA AND FORMING OR
    20     CAPABLE OF FORMING PART OF AN INTEGRATED SUBURBAN RAPID
    21     TRANSIT OR RAIL TRANSPORTATION FACILITY, CONNECTING WITH
    22     RAPID TRANSIT OR ELECTRIC RAILWAY LINES OF THE AUTHORITY IN
    23     SUPERHIGHWAYS OR ELSEWHERE. NO INTEREST IN THE RIGHT-OF-WAY
    24     OF A RAILROAD COMPANY THE OPERATIONS OF WHICH EXTEND BEYOND
    25     THE METROPOLITAN AREA SHALL BE ACQUIRED OR OCCUPIED UNDER THE
    26     POWER OF EMINENT DOMAIN UNDER THIS SECTION OR ANY OTHER
    27     SECTION WITHOUT THE CONSENT OF THE RAILROAD.
    28         (2)  SUCH PROPERTIES, UPON ACQUISITION BY OR LEASE TO THE
    29     AUTHORITY, SHALL BECOME AND BE OPERATED AS PART OF THE
    30     TRANSPORTATION SYSTEM OF THE AUTHORITY, AND THE AUTHORITY
    19930H0878B1976                 - 46 -

     1     SHALL HAVE ALL POWERS IN CONNECTION WITH SUCH PROPERTIES AND
     2     SUCH OPERATIONS AS ARE CONFERRED BY THIS CHAPTER.
     3         (3)  THE AUTHORITY SHALL ALSO HAVE THE POWER TO ENTER
     4     INTO AGREEMENTS TO OPERATE ANY LINES LOCATED OR EXTENDING
     5     BEYOND THE BOUNDARIES OF THE METROPOLITAN AREA, SUCH
     6     AGREEMENTS TO BE SUBJECT TO ALL OTHER PROVISIONS OF THIS
     7     CHAPTER. THE AUTHORITY SHALL HAVE POWER TO LEASE OR PURCHASE
     8     ANY MUNICIPALLY OWNED LOCAL TRANSPORTATION SUBWAYS OR OTHER
     9     MUNICIPALLY OWNED LOCAL TRANSPORTATION FACILITIES FOR
    10     OPERATION AND MAINTENANCE BY THE AUTHORITY.
    11     (B)  CONDEMNATION PROCEDURE.--
    12         (1)  WHENEVER THE AUTHORITY SHALL CONDEMN ALL OR
    13     SUBSTANTIALLY ALL OF THE PROPERTY OF A TRANSPORTATION SYSTEM,
    14     IT MAY ELECT TO COMMENCE CONDEMNATION PROCEEDINGS WITHOUT
    15     IMMEDIATE PASSAGE OF TITLE BY INSERTING A PROVISION TO THAT
    16     EFFECT IN THE DECLARATION OF TAKING. IN THAT EVENT, THE
    17     PROVISIONS OF SECTION 402 OF THE ACT OF JUNE 22, 1964
    18     (SP.SESS., P.L.84, NO.6), KNOWN AS THE EMINENT DOMAIN CODE,
    19     SHALL NOT APPLY, AND THE TITLE SHALL NOT PASS TO THE
    20     AUTHORITY AND THE AUTHORITY SHALL NOT BE ENTITLED TO
    21     POSSESSION UNTIL PAYMENT TO THE CONDEMNEE OR INTO COURT OF
    22     THE AMOUNT OF THE JUST COMPENSATION PAYABLE FOR THE PROPERTY
    23     TAKEN, DETERMINED AS OF THE DATE OF FILING OF THE DECLARATION
    24     OF TAKING, AS FINALLY DETERMINED IN ACCORDANCE WITH THE
    25     PROVISIONS OF THIS ARTICLE, PROVIDED THAT SUCH PAYMENT OCCURS
    26     WITHIN ONE YEAR OF THE FINAL DETERMINATION.
    27         (2)  FROM AND AFTER THE FILING OF THE DECLARATION OF
    28     TAKING UNTIL THE PAYMENT TO THE CONDEMNEE OF JUST
    29     COMPENSATION FOR THE CONDEMNED PROPERTY, THE AUTHORITY SHALL
    30     HAVE THE RIGHT TO PETITION THE COURT HAVING JURISDICTION OF
    19930H0878B1976                 - 47 -

     1     THE PROCEEDINGS TO PREVENT WASTE, SUBSTANTIAL DISPOSITION OR
     2     ANY TRANSACTION WITH RESPECT TO THE CONDEMNED PROPERTY OTHER
     3     THAN IN THE ORDINARY COURSE OF BUSINESS WITHOUT OBTAINING THE
     4     PRIOR WRITTEN CONSENT OF THE AUTHORITY. THE CONDEMNEE SHALL
     5     HAVE NO RIGHT TO TENDER POSSESSION OF THE PROPERTY OR
     6     OTHERWISE TO DEMAND PAYMENT OF ANY COMPENSATION PRIOR TO THE
     7     PASSAGE OF TITLE.
     8  § 1743.  POWER TO CONTRACT WITH PUBLIC UTILITIES.
     9     THE AUTHORITY SHALL HAVE POWER TO ENTER INTO AGREEMENTS WITH
    10  ANY PUBLIC UTILITY OPERATING A RAILROAD OR ANY OTHER
    11  TRANSPORTATION FACILITY, EITHER WITHIN OR WITHOUT THE
    12  METROPOLITAN AREA, FOR THE JOINT USE OF ANY PROPERTY OF THE
    13  AUTHORITY OR PUBLIC UTILITY OR THE ESTABLISHMENT OF THROUGH
    14  ROUTES, JOINT FARES AND TRANSFER OF PASSENGERS. THE AUTHORITY
    15  SHALL HAVE POWER TO ENTER INTO AGREEMENTS WITH ANY PUBLIC
    16  UTILITY, EITHER WITHIN OR WITHOUT THE METROPOLITAN AREA, WHICH
    17  IN THE JUDGMENT OF THE AUTHORITY ARE NECESSARY AND CONVENIENT
    18  FOR CARRYING OUT THE PURPOSES OF THIS CHAPTER.
    19  § 1744.  POWER OF EMINENT DOMAIN.
    20     (A)  UTILITY STRUCTURES.--
    21         (1)  THE AUTHORITY SHALL HAVE POWER, SUBJECT TO RELEVANT
    22     PROVISIONS OF SECTION 1741(A)(26) (RELATING TO GENERAL
    23     POWERS), TO REQUIRE PERSONS OR CORPORATIONS OWNING OR
    24     OPERATING PUBLIC UTILITY STRUCTURES AND APPLIANCES IN, UPON,
    25     UNDER, OVER, ACROSS OR ALONG THE PUBLIC ROADS, STREETS OR
    26     OTHER PUBLIC WAYS IN WHICH THE AUTHORITY HAS THE RIGHT TO
    27     OWN, CONSTRUCT, OPERATE OR MAINTAIN TRANSPORTATION FACILITIES
    28     TO REMOVE THE PUBLIC UTILITY STRUCTURES AND APPLIANCES FROM
    29     THEIR LOCATIONS. IF ANY PERSON OR CORPORATION OWNING OR
    30     OPERATING PUBLIC UTILITY STRUCTURES AND APPLIANCES FAILS OR
    19930H0878B1976                 - 48 -

     1     REFUSES TO REMOVE OR RELOCATE THEM, THE AUTHORITY MAY REMOVE
     2     OR RELOCATE THEM. THE AUTHORITY SHALL PROVIDE THE NEW
     3     LOCATION WHICH THE STRUCTURES OR APPLIANCES AS RELOCATED
     4     SHALL OCCUPY, AND TO THAT END THE AUTHORITY IS HEREBY
     5     AUTHORIZED TO ACQUIRE BY PURCHASE OR BY THE EXERCISE OF THE
     6     POWER OF EMINENT DOMAIN ANY NECESSARY LAND OR RIGHT-OF-WAY
     7     FOR SUCH PURPOSE, IF THE NEW LOCATION SHALL NOT BE IN, ON OR
     8     ABOVE A HIGHWAY, ROAD OR STREET. THE EXACT NEW LOCATION SHALL
     9     BE CHOSEN BY AGREEMENT OF THE AUTHORITY AND THE UTILITY. UPON
    10     THE COMPLETION OF THE RELOCATION, THE AUTHORITY SHALL
    11     REIMBURSE THE PUBLIC UTILITY FOR THE COST OF RELOCATION WHICH
    12     SHALL BE THE ENTIRE AMOUNT PAID BY THE UTILITY PROPERLY
    13     ATTRIBUTABLE TO THE RELOCATION OF THE STRUCTURE OR APPLIANCE
    14     AFTER DEDUCTING THE COST OF ANY INCREASE IN THE SERVICE
    15     CAPACITY OF THE NEW STRUCTURE OR APPLIANCE AND ANY SALVAGE
    16     VALUE DERIVED FROM THE OLD STRUCTURE OR APPLIANCE.
    17         (2)  IF AN ISSUE SHALL ARISE BETWEEN THE AUTHORITY AND
    18     THE PUBLIC UTILITY AS TO THE AMOUNT OF THE COST OF RELOCATION
    19     OR THE NEW LOCATION EITHER PARTY MAY INSTITUTE A PROCEEDING
    20     BY COMPLAINT BEFORE THE PENNSYLVANIA PUBLIC UTILITY
    21     COMMISSION, WHICH IS HEREBY GIVEN EXCLUSIVE JURISDICTION TO
    22     HEAR AND DETERMINE THE ISSUE. APPEAL FROM THE ORDER OF THE
    23     COMMISSION IN ANY PROCEEDING MAY BE TAKEN IN THE SAME MANNER
    24     AS IS PRESCRIBED BY LAW FOR APPEALS FROM OTHER ORDERS OF THE
    25     COMMISSION.
    26     (B)  EMINENT DOMAIN.--
    27         (1)  THE AUTHORITY SHALL HAVE THE RIGHT OF EMINENT DOMAIN
    28     WHICH MAY BE EXERCISED, EITHER WITHIN OR WITHOUT THE
    29     METROPOLITAN AREA, TO ACQUIRE PRIVATE PROPERTY AND PROPERTY
    30     DEVOTED TO ANY PUBLIC USE WHICH IS NECESSARY FOR THE PURPOSES
    19930H0878B1976                 - 49 -

     1     OF THE AUTHORITY, EXCEPT PROPERTY OF A PUBLIC UTILITY
     2     OPERATING TRANSPORTATION FACILITIES EXTENDING BEYOND THE
     3     BOUNDARIES OF THE METROPOLITAN AREA.
     4         (2)  THE AUTHORITY SHALL HAVE THE RIGHT OF EMINENT DOMAIN
     5     TO ACQUIRE PROPERTY OF ANY RAILROAD WHICH PROPERTY IS NOT
     6     USED FOR OR IN CONNECTION WITH THE TRANSPORTATION OF PERSONS
     7     OR PROPERTY AND TO ACQUIRE RIGHTS AND EASEMENTS ACROSS, UNDER
     8     OR OVER THE RIGHT-OF-WAY OF SUCH RAILROAD WHENEVER THE
     9     AUTHORITY SHALL ACQUIRE THE PRIVATE RIGHT-OF-WAY OR OTHER
    10     PROPERTY OF A PUBLIC UTILITY USED OR USEFUL IN ITS SERVICE TO
    11     THE PUBLIC.
    12         (3)  IT SHALL, BEFORE REQUIRING THE REMOVAL OF THE
    13     EXISTING STRUCTURES AND APPLIANCES, PROVIDE A NEW LOCATION
    14     FOR THE STRUCTURES AND APPLIANCES AND, UPON THE COMPLETION OF
    15     RELOCATION, REIMBURSE THE PUBLIC UTILITY FOR THE COST THEREOF
    16     IN THE MANNER PROVIDED IN SUBSECTION (A).
    17     (C)  TITLE.--TITLE TO ANY PROPERTY ACQUIRED BY AN AUTHORITY
    18  THROUGH EMINENT DOMAIN SHALL BE AN ABSOLUTE OWNERSHIP OR FEE
    19  SIMPLE TITLE UNLESS A LESSER TITLE SHALL BE DESIGNATED
    20  SPECIFICALLY IN THE EMINENT DOMAIN PROCEEDINGS.
    21     (D)  PUBLIC UTILITIES.--REAL AND PERSONAL PROPERTY OF ANY
    22  KIND WHATEVER BELONGING TO A PUBLIC UTILITY CORPORATION
    23  PROVIDING TRANSPORTATION OR TRANSPORTATION-RELATED SERVICES MAY
    24  BE ACQUIRED WITHOUT THE APPROVAL OF THE PENNSYLVANIA PUBLIC
    25  UTILITY COMMISSION. IN ALL CASES INVOLVING THE FACILITIES OF A
    26  RAILROAD, ANY OPERATIONS OF WHICH EXTEND BEYOND THE METROPOLITAN
    27  AREA, THE EXERCISE OF THE POWER OF THE AUTHORITY UNDER THIS
    28  SUBSECTION SHALL BE SUBJECT TO THE JURISDICTION OF THAT
    29  COMMISSION UNDER TITLE 66 (RELATING TO PUBLIC UTILITIES).
    30     (E)  CERTAIN PROPERTY EXEMPT.--NO PROPERTY OWNED OR USED BY
    19930H0878B1976                 - 50 -

     1  THE UNITED STATES, THE COMMONWEALTH, ANY POLITICAL SUBDIVISION
     2  THEREOF OR ANY BODY POLITIC AND CORPORATE ORGANIZED AS AN
     3  AUTHORITY UNDER ANY LAW OF THIS COMMONWEALTH OR BY ANY AGENCY OF
     4  ANY OF THEM, NOR PROPERTY USED FOR BURIAL PURPOSES OR PLACES OF
     5  PUBLIC WORSHIP, SHALL BE TAKEN UNDER THE RIGHT OF EMINENT DOMAIN
     6  WITHOUT THE CONSENT OF THE OWNER OR USER THEREOF.
     7     (F)  NEGOTIATION.--BEFORE EXERCISING THE POWER OF EMINENT
     8  DOMAIN, REASONABLE EFFORTS SHALL BE MADE BY THE AUTHORITY TO
     9  ACHIEVE THE DESIRED RESULT THROUGH NEGOTIATION.
    10  § 1745.  USE OF WAYS OCCUPIED BY PASSENGER UTILITIES.
    11     THE AUTHORITY SHALL NOT HAVE THE RIGHT TO USE ANY STREET OR
    12  PUBLIC WAY, OCCUPIED PRIOR TO JANUARY 15, 1964, BY A PUBLIC
    13  UTILITY ENGAGED IN LOCAL PASSENGER TRANSPORTATION, FOR A
    14  COMPETING PURPOSE, WITHOUT THE AGREEMENT OF THE PUBLIC UTILITY.
    15  § 1746.  TRANSFER OF RECORDS BY PENNSYLVANIA PUBLIC UTILITY
    16             COMMISSION.
    17     IN CASE THE AUTHORITY ACQUIRES THE PLANT, EQUIPMENT, PROPERTY
    18  AND RIGHTS IN PROPERTY OF ANY PUBLIC UTILITY USED OR USEFUL IN
    19  THE OPERATION OF A TRANSPORTATION SYSTEM, THE PENNSYLVANIA
    20  PUBLIC UTILITY COMMISSION SHALL TRANSFER AND DELIVER TO THE
    21  BOARD, UPON ITS DEMAND, IN WRITING, ALL BOOKS, PAPERS AND
    22  RECORDS IN CONTROL OF THE COMMISSION AFFECTING THE PUBLIC
    23  UTILITY EXCLUSIVELY.
    24  § 1747.  ACQUISITION OF EQUIPMENT.
    25     (A)  GENERAL RULE.--THE AUTHORITY SHALL HAVE POWER TO
    26  PURCHASE OR OTHERWISE ACQUIRE THE OWNERSHIP OR USE OF OR ACCESS
    27  TO EQUIPMENT, SUCH AS CARS, TROLLEY BUSES, STREET CARS, BUSES,
    28  MONORAILS, RAILROAD MOTIVE POWER, TRAINS, RAILROAD PASSENGER
    29  CARS AND EQUIPMENT, SUBWAY PASSENGER CARS AND EQUIPMENT,
    30  ELEVATED PASSENGER OR PASSENGER AND RAIL ROLLING STOCK, SELF-
    19930H0878B1976                 - 51 -

     1  PROPELLED AND GALLERY CARS, LOCOMOTIVES, RAILS, LINES, POLES AND
     2  WIRES, AS WELL AS ANY EQUIPMENT NECESSARY FOR THE IMPROVEMENT OF
     3  OR OVERHAUL OF ANY OF THE FOREGOING, AND ANY OTHER EQUIPMENT
     4  WHICH, IN THE JUDGMENT OF THE AUTHORITY, MAY BE USEFUL IN THE
     5  OPERATION OF A TRANSPORTATION SYSTEM. THE AUTHORITY SHALL HAVE
     6  THE POWER TO EXECUTE AGREEMENTS, LEASES AND EQUIPMENT TRUST
     7  CERTIFICATES IN A FORM SATISFACTORY TO THE AUTHORITY TO EFFECT
     8  THE PURCHASE OR ACQUISITION AND MAY DISPOSE OF SUCH EQUIPMENT
     9  TRUST CERTIFICATES, PROVIDED THAT THE CERTIFICATES SHALL BE
    10  OFFERED FOR SALE IN A MANNER SIMILAR TO THAT PROVIDED FOR THE
    11  SALE OF BONDS IN THIS CHAPTER. ALL MONEY REQUIRED TO BE PAID BY
    12  THE AUTHORITY UNDER THE PROVISIONS OF THE AGREEMENTS, LEASES AND
    13  EQUIPMENT TRUST CERTIFICATES SHALL BE PAYABLE SOLELY FROM THE
    14  REVENUE OR INCOME TO BE DERIVED FROM THE TRANSPORTATION SYSTEM
    15  AND FROM GRANTS AND LOANS AS PROVIDED ELSEWHERE IN THIS CHAPTER.
    16  PAYMENT FOR THE EQUIPMENT OR RENTALS THEREFOR MAY BE MADE IN
    17  INSTALLMENTS AND THE DEFERRED INSTALLMENTS MAY BE EVIDENCED BY
    18  EQUIPMENT TRUST CERTIFICATES PAYABLE SOLELY FROM SUCH REVENUE,
    19  INCOME, GRANTS OR LOANS AND TITLE TO THE EQUIPMENT SHALL NOT
    20  VEST IN THE AUTHORITY UNTIL THE EQUIPMENT TRUST CERTIFICATES ARE
    21  PAID.
    22     (B)  TRUSTEE.--THE AGREEMENT TO PURCHASE MAY DIRECT THE
    23  VENDOR TO SELL AND ASSIGN THE EQUIPMENT TO A BANK, BANK AND
    24  TRUST COMPANY OR TRUST COMPANY DULY AUTHORIZED TO TRANSACT
    25  BUSINESS IN THIS COMMONWEALTH AS TRUSTEE FOR THE BENEFIT AND
    26  SECURITY OF THE EQUIPMENT TRUST CERTIFICATES AND MAY DIRECT THE
    27  TRUSTEE TO DELIVER THE EQUIPMENT TO ONE OR MORE DESIGNATED
    28  OFFICERS OF THE AUTHORITY AND MAY AUTHORIZE THE TRUSTEE
    29  SIMULTANEOUSLY THEREWITH TO EXECUTE AND DELIVER A LEASE OF THE
    30  EQUIPMENT TO THE AUTHORITY.
    19930H0878B1976                 - 52 -

     1     (C)  AUTHORIZATION AND ACKNOWLEDGMENT.--THE AGREEMENTS AND
     2  LEASES SHALL BE DULY ACKNOWLEDGED BEFORE SOME PERSON AUTHORIZED
     3  BY LAW TO TAKE ACKNOWLEDGMENTS OF DEEDS AND IN THE FORM REQUIRED
     4  FOR ACKNOWLEDGMENTS OF DEEDS, AND SUCH AGREEMENTS, LEASES AND
     5  EQUIPMENT TRUST CERTIFICATES SHALL BE AUTHORIZED BY RESOLUTION
     6  OF THE BOARD AND SHALL CONTAIN SUCH COVENANTS, CONDITIONS AND
     7  PROVISIONS AS MAY BE DEEMED NECESSARY OR APPROPRIATE TO INSURE
     8  THE PAYMENT OF THE EQUIPMENT TRUST CERTIFICATES FROM THE REVENUE
     9  OR INCOME TO BE DERIVED FROM THE TRANSPORTATION SYSTEM.
    10     (D)  PROVISIONS OF AGREEMENTS--THE COVENANTS, CONDITIONS AND
    11  PROVISIONS OF THE AGREEMENTS, LEASES AND EQUIPMENT TRUST
    12  CERTIFICATES SHALL NOT CONFLICT WITH ANY OF THE PROVISIONS OF
    13  ANY TRUST INDENTURE SECURING THE PAYMENT OF BONDS OF THE
    14  AUTHORITY.
    15     (E)  FILING.--AN EXECUTED COPY OF EACH AGREEMENT AND LEASE
    16  SHALL BE FILED IN THE OFFICE OF THE SECRETARY OF THE
    17  COMMONWEALTH WHO SHALL BE ENTITLED TO RECEIVE $1 FOR EACH COPY
    18  FILED. THIS FILING SHALL CONSTITUTE NOTICE TO ANY SUBSEQUENT
    19  JUDGMENT CREDITOR OR ANY SUBSEQUENT PURCHASER. EACH VEHICLE SO
    20  PURCHASED AND LEASED SHALL HAVE THE NAME OF THE OWNER AND LESSOR
    21  PLAINLY MARKED UPON BOTH SIDES THEREOF, FOLLOWED BY THE WORDS
    22  "OWNER AND LESSOR."
    23  § 1748.  TRANSFERS OF FACILITIES OR THINGS OF VALUE TO ANY
    24             AUTHORITY.
    25     ANY PERSON MAY AND IS HEREBY AUTHORIZED TO SELL, LEASE, LEND,
    26  GRANT, CONVEY, TRANSFER OR PAY OVER TO ANY AUTHORITY, WITH OR
    27  WITHOUT CONSIDERATION, ANY PROJECT OR ANY PART OR PARTS THEREOF,
    28  OR ANY INTEREST IN REAL OR PERSONAL PROPERTY OR ANY FUNDS
    29  AVAILABLE FOR BUILDING CONSTRUCTION OR IMPROVEMENT PURPOSES,
    30  INCLUDING THE PROCEEDS OF BONDS PREVIOUSLY OR HEREAFTER ISSUED
    19930H0878B1976                 - 53 -

     1  FOR BUILDING CONSTRUCTION OR IMPROVEMENT PURPOSES, OR ANY MONEY
     2  OR THING OF VALUE, INCLUDING SERVICES, WHICH MAY BE USED BY THE
     3  AUTHORITY IN THE CONSTRUCTION, ACQUISITION, IMPROVEMENT,
     4  MAINTENANCE OR OPERATION OF ANY PROJECT OR FOR ANY OTHER OF ITS
     5  CORPORATE PURPOSES, ANY OTHER LAW TO THE CONTRARY
     6  NOTWITHSTANDING.
     7  § 1749.  COMPACTS TO FINANCE OPERATIONS AND PARTICULAR PROJECTS.
     8     (A)  GENERAL RULE.--THE COUNTIES AND MUNICIPALITIES IN ANY
     9  METROPOLITAN AREA SHALL ENTER INTO A COMPACT OR COMPACTS AMONG
    10  THEMSELVES AND/OR WITH THE AUTHORITY TO PROVIDE FOR MEETING THE
    11  AUTHORITY'S CAPITAL OR OPERATING BUDGET BY APPROPRIATIONS,
    12  ANNUAL OR OTHERWISE, OF SUCH SUMS AND IN SUCH PROPORTIONS AS MAY
    13  BE AGREED UPON IN THE COMPACT TO BE PAID BY EACH SIGNATORY PARTY
    14  THERETO. THE OBLIGATION INCURRED THEREBY SHALL BE FOR THE TERM
    15  AS SET FORTH IN THE COMPACT WITHOUT REGARD TO THE PROVISIONS OF
    16  ANY LAW, ORDINANCE OR REGULATION TO THE CONTRARY AND SHALL
    17  CONSTITUTE A COMMITMENT AND OBLIGATION, BINDING AND ABSOLUTE, ON
    18  THE PART OF EACH SIGNATORY PARTY TO APPROPRIATE AND PAY OVER THE
    19  NECESSARY FUNDS IN ACCORDANCE THEREWITH. THE OPERATING BUDGET
    20  SHALL INCLUDE ALL SUMS OF MONEY NECESSARY FOR THE FORMATION AND
    21  ORGANIZATION OF ANY AUTHORITY AND ALL ITEMS OF OPERATING
    22  EXPENSES IN CONNECTION WITH THE AUTHORITY, AS WELL AS NECESSARY
    23  FUNDS FOR PLANNING AND RESEARCH APPROPRIATE AND CONSISTENT WITH
    24  THE PURPOSES OF THIS CHAPTER AND ANY COMPACT ENTERED INTO UNDER
    25  THIS CHAPTER.
    26     (B)  FINANCING OF PARTICULAR PROJECTS.--A COMPACT MAY ALSO
    27  PROVIDE FOR THE FINANCING OF A PARTICULAR MASS TRANSPORTATION
    28  PROJECT IN SUCH MANNER AS SHALL BE PROVIDED FOR IN THE COMPACT.
    29     (C)  COMMITMENT OF PARTY.--WHENEVER A PARTY SIGNATORY TO A
    30  COMPACT THEREBY EXPRESSES ITS APPROVAL OF THE BUDGET FOR
    19930H0878B1976                 - 54 -

     1  FINANCING A PARTICULAR PROJECT, THIS SHALL THEN CONSTITUTE A
     2  COMMITMENT AND OBLIGATION, BINDING AND ABSOLUTE, ON THE PART OF
     3  THE PARTY SIGNATORY TO APPROPRIATE THE NECESSARY FUNDS IN
     4  ACCORDANCE THEREWITH.
     5     (D)  COMMITMENT OF COUNTY OR MUNICIPALITY.--NO COMMITMENT OR
     6  OBLIGATION INVOLVING THE PAYMENT OF MONEYS TO OR ON BEHALF OF
     7  THE AUTHORITY SHALL EXIST IN ANY INSTANCE ON THE PART OF ANY
     8  COUNTY OR OTHER MUNICIPALITY WITHIN THE METROPOLITAN AREA UNLESS
     9  AND UNTIL THE COMMITMENT OR OBLIGATION SHALL FIRST HAVE BEEN
    10  EXPRESSLY AND LAWFULLY UNDERTAKEN AND ASSUMED BY THE COUNTY OR
    11  OTHER MUNICIPALITY.
    12  § 1750.  CONTRACTS, PROCUREMENT AND SALE OF PROPERTY.
    13     (A)  COMPETITIVE BIDS.--EXCEPT IN THE PURCHASE OF UNIQUE
    14  ARTICLES OR ARTICLES WHICH, FOR ANY OTHER REASON, CANNOT BE
    15  OBTAINED IN THE OPEN MARKET AND EXCEPT AS PROVIDED IN SECTION
    16  1741 (RELATING TO GENERAL POWERS) AND AS PROVIDED IN THIS
    17  CHAPTER, COMPETITIVE BIDS SHALL BE SECURED BEFORE ANY PURCHASE
    18  OR SALE, BY CONTRACT OR OTHERWISE, IS MADE OR BEFORE ANY
    19  CONTRACT IS AWARDED FOR CONSTRUCTION, ALTERATIONS, SUPPLIES,
    20  EQUIPMENT, REPAIRS OR MAINTENANCE OR FOR RENDERING ANY SERVICES
    21  TO THE AUTHORITY OTHER THAN PROFESSIONAL SERVICES. PURCHASES
    22  SHALL BE MADE FROM OR THE CONTRACT SHALL BE AWARDED TO THE
    23  LOWEST RESPONSIVE, RESPONSIBLE BIDDER. SALES SHALL BE MADE TO
    24  THE HIGHEST RESPONSIVE, RESPONSIBLE BIDDER. NO PURCHASE OF ANY
    25  UNIQUE ARTICLE OR OTHER ARTICLES WHICH CANNOT BE OBTAINED IN THE
    26  OPEN MARKET SHALL BE MADE WITHOUT EXPRESS APPROVAL OF THE BOARD
    27  WHERE THE AMOUNT INVOLVED IS IN EXCESS OF $25,000. THE AUTHORITY
    28  SHALL NOT BE SUBJECT TO THE ACT OF NOVEMBER 26, 1978 (P.L.1309,
    29  NO.317), ENTITLED "AN ACT REGULATING THE AWARDING AND EXECUTION
    30  OF CERTAIN PUBLIC CONTRACTS; PROVIDING FOR CONTRACT PROVISIONS
    19930H0878B1976                 - 55 -

     1  RELATING TO THE RETENTION, INTEREST AND PAYMENT OF FUNDS PAYABLE
     2  UNDER THE CONTRACTS; AND REPEALING INCONSISTENT ACTS." NOTHING
     3  IN THIS SECTION OR ANY OTHER LAW OF THIS COMMONWEALTH SHALL
     4  REQUIRE THE AUTHORITY TO COMPETITIVELY BID ARCHITECTURAL DESIGN,
     5  ENGINEERING, CONSTRUCTION MANAGEMENT OR OTHER PROFESSIONAL
     6  SERVICES REQUIRED BY THE AUTHORITY.
     7     (B)  PROCEDURE.--ALL PURCHASES AND SALES IN EXCESS OF $25,000
     8  SHALL BE AWARDED AFTER ADVERTISING IN A LOCAL NEWSPAPER OF
     9  GENERAL CIRCULATION IN THE METROPOLITAN AREA AT LEAST TWO WEEKS
    10  PRIOR TO THE BID OPENING. BIDS SHALL BE PUBLICLY OPENED AND READ
    11  ALOUD AT A DATE, TIME AND PLACE DESIGNATED IN THE INVITATION TO
    12  BID. INVITATIONS TO BID SHALL BE SENT AT LEAST ONE WEEK PRIOR TO
    13  THE BID OPENING TO AT LEAST THREE POTENTIAL BIDDERS WHO ARE
    14  QUALIFIED TECHNICALLY AND FINANCIALLY TO SUBMIT BIDS, OR, IN
    15  LIEU THEREOF, A MEMORANDUM SHALL BE KEPT ON FILE SHOWING THAT
    16  LESS THAN THREE POTENTIAL BIDDERS SO QUALIFIED EXIST IN THE
    17  MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO OBTAIN BIDS.
    18     (C)  QUALIFIED VENDORS.--WRITTEN PRICE QUOTATIONS FROM AT
    19  LEAST THREE QUALIFIED AND RESPONSIBLE VENDORS SHALL BE SOLICITED
    20  FOR ALL PURCHASES AND SALES UNDER $25,000 AND OVER $10,000, OR,
    21  IN LIEU THEREOF, A MEMORANDUM APPROVED BY THE GENERAL MANAGER
    22  SHALL BE KEPT ON FILE SHOWING THAT LESS THAN THREE VENDORS SO
    23  QUALIFIED EXIST IN THE MARKET AREA WITHIN WHICH IT IS
    24  PRACTICABLE TO OBTAIN QUOTATIONS, EXCEPT AS PROVIDED IN THIS
    25  CHAPTER.
    26     (D)  SMALL PURCHASES.--PURCHASES OR SALES UNDER $10,000 MAY
    27  BE NEGOTIATED WITH OR WITHOUT COMPETITIVE BIDDING UNDER SOUND
    28  PROCUREMENT PROCEDURES AS PROMULGATED AND ESTABLISHED BY THE
    29  GENERAL MANAGER.
    30     (E)  WAIVER.--COMPETITIVE BIDDING REQUIREMENTS MAY BE WAIVED
    19930H0878B1976                 - 56 -

     1  IF IT IS DETERMINED BY THE GENERAL MANAGER, OR IN SUCH OTHER
     2  MANNER AS THE BOARD MAY PROVIDE, THAT AN EMERGENCY DIRECTLY AND
     3  IMMEDIATELY AFFECTING CUSTOMER SERVICE OR PUBLIC HEALTH, SAFETY
     4  OR WELFARE REQUIRES IMMEDIATE DELIVERY OF SUPPLIES, MATERIALS,
     5  EQUIPMENT OR SERVICES. A RECORD OF CIRCUMSTANCES EXPLAINING THE
     6  EMERGENCY SHALL BE SUBMITTED TO THE BOARD AT ITS NEXT REGULAR
     7  MEETING AND THEREAFTER KEPT ON FILE.
     8     (F)  SALE OR LEASE OF REAL PROPERTY.--CONTRACTS FOR THE SALE
     9  OR LEASE OF REAL PROPERTY OWNED BY THE AUTHORITY SHALL BE
    10  AWARDED AFTER COMPETITIVE BIDDING AS SHOWN IN SUBSECTION (B),
    11  EXCEPT AS PROVIDED IN SECTION 1741(22) WHERE THE CONTRACT IS
    12  ENTERED INTO WITH THE COMMONWEALTH OR ANY GOVERNMENT AGENCY OR
    13  WITH THE UNITED STATES GOVERNMENT OR ANY AGENCY OR
    14  INSTRUMENTALITY THEREOF OR AS PROVIDED IN SECTION 1741(24).
    15     (G)  PROPERTY MANAGEMENT CONTRACTS.--CONTRACTS FOR THE
    16  MANAGEMENT OF AUTHORITY-OWNED PROPERTY, SUCH AS BUS ROUTES OR
    17  SUBWAY SYSTEMS, MAY BE NEGOTIATED AND AWARDED BY AN AFFIRMATIVE
    18  VOTE OF ONE MORE THAN A MAJORITY OF ALL MEMBERS OF THE BOARD.
    19     (H)  AVOIDANCE PROHIBITED.--REQUIREMENTS SHALL NOT BE SPLIT
    20  INTO PARTS FOR THE PURPOSE OF AVOIDING THE PROVISIONS OF THIS
    21  SECTION.
    22     (I)  REJECTION OF BIDS.--THE AUTHORITY SHALL HAVE THE RIGHT
    23  TO REJECT ANY OR ALL BIDS OR PARTS OF ANY OR ALL BIDS, WHENEVER,
    24  IN THE OPINION OF THE BOARD, REJECTION IS NECESSARY FOR THE
    25  PROTECTION OF THE INTERESTS OF THE AUTHORITY. IN EVERY CASE, A
    26  RECORD SHALL BE MADE SETTING FORTH THE REASON FOR THE REJECTION,
    27  WHICH RECORD SHALL THEREAFTER BE KEPT ON FILE.
    28     (J)  RULES AND REGULATIONS.--THE BOARD MAY BY RESOLUTION
    29  ADOPT POLICIES TO EFFECTUATE THE PROVISIONS OF THIS SECTION.
    30     (K)  PROFESSIONAL SERVICES.--NOTHING IN THIS SECTION OR ANY
    19930H0878B1976                 - 57 -

     1  OTHER LAW OF THIS COMMONWEALTH SHALL REQUIRE THE AUTHORITY TO
     2  COMPETITIVELY BID ARCHITECTURAL DESIGN, ENGINEERING,
     3  CONSTRUCTION MANAGEMENT, ACCOUNTING, FINANCIAL, LEGAL OR OTHER
     4  PROFESSIONAL SERVICES REQUIRED BY THE AUTHORITY. NEVERTHELESS,
     5  ALL CONTRACTS NOT COMPETITIVELY BID SHALL BE SUBJECT TO THE
     6  APPROVAL OF A QUALIFIED MAJORITY.
     7     (L)  CONCESSIONS.--ALL CONCESSIONS GRANTED BY THE AUTHORITY
     8  FOR THE SALE OF PRODUCTS OR THE RENDITION OF SERVICES FOR A
     9  CONSIDERATION ON AUTHORITY PROPERTY SHALL BE AWARDED ONLY UNDER
    10  WRITTEN SPECIFICATIONS AFTER COMPETITIVE BIDDING AND TO THE
    11  HIGHEST RESPONSIVE, RESPONSIBLE BIDDER IN A MANNER SIMILAR TO
    12  THAT REQUIRED BY SUBSECTION (B) OR (C) AS APPROPRIATE. THIS
    13  REQUIREMENT FOR COMPETITIVE BIDDING SHALL NOT APPLY TO ANY
    14  CONCESSION WHICH HAS BEEN GRANTED BY A TRANSPORTATION SYSTEM
    15  ACQUIRED BY THE AUTHORITY AND WHICH BY THE TERMS OF THE
    16  AGREEMENT GRANTING IT WILL TERMINATE WITHIN ONE YEAR FROM DATE
    17  OF THE ACQUISITION OF THE TRANSPORTATION SYSTEM BY THE
    18  AUTHORITY, NOR TO ANY CONCESSION INVOLVING THE ESTIMATED RECEIPT
    19  BY THE AUTHORITY OF LESS THAN $10,000 OVER THE PERIOD FOR WHICH
    20  THE CONCESSION IS GRANTED.
    21  § 1751.  FISCAL PROVISIONS.
    22     (A)  FISCAL YEAR AND BUDGET.--THE BOARD SHALL ESTABLISH A
    23  FISCAL YEAR FOR OPERATIONS AND A FISCAL YEAR FOR CAPITAL
    24  PROGRAMS. AT LEAST 90 DAYS PRIOR TO THE BEGINNING OF THE FIRST
    25  FULL FISCAL YEAR AFTER THE CREATION OF THE AUTHORITY AND
    26  ANNUALLY THEREAFTER, THE BOARD SHALL CAUSE TO BE PREPARED AND
    27  SUBMITTED TO IT A TENTATIVE OPERATING BUDGET AND A TENTATIVE
    28  CAPITAL BUDGET FOR THE ENSUING FISCAL YEAR. THE TENTATIVE
    29  BUDGETS SHALL BE CONSIDERED BY THE BOARD AND, SUBJECT TO ANY
    30  REVISION AND AMENDMENTS AS MAY BE DETERMINED, SHALL BE ADOPTED
    19930H0878B1976                 - 58 -

     1  PRIOR TO THE FIRST DAY OF THE ENSUING FISCAL YEAR AS THE BUDGETS
     2  FOR THAT YEAR. THE BOARD SHALL ESTABLISH SUCH RULES AS ARE
     3  NECESSARY FOR PROPER OBSERVANCE OF THE BUDGETS. SIMULTANEOUSLY
     4  WITH THE ADOPTION OF THE CAPITAL BUDGET, THE BOARD SHALL ADOPT A
     5  TENTATIVE CAPITAL PROGRAM COVERING THE ENSUING SIX YEARS.
     6     (B)  PROCEDURE.--A PUBLIC HEARING SHALL BE CONDUCTED PRIOR TO
     7  THE ADOPTION OF THE FINAL OPERATING BUDGET AND TENTATIVE CAPITAL
     8  PROGRAM. NOTICE OF THE PUBLIC HEARING SHALL BE PUBLISHED IN TWO
     9  NEWSPAPERS OF GENERAL CIRCULATION AND A PUBLICATION SPECIFICALLY
    10  DESIGNED TO REACH MINORITIES NOT FEWER THAN 30 DAYS PRIOR TO THE
    11  HEARING.
    12  § 1752.  FINANCIAL STATEMENTS AND AUDIT.
    13     (A)  STATEMENT.--AS SOON AFTER THE END OF EACH FISCAL YEAR AS
    14  IS FEASIBLE, THE BOARD SHALL CAUSE TO BE PREPARED AND PRINTED A
    15  REPORT AND FINANCIAL STATEMENT OF THE AUTHORITY'S OPERATIONS FOR
    16  THE PREVIOUS YEAR AND OF ITS ASSETS AND LIABILITIES PREPARED IN
    17  ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. A
    18  REASONABLY SUFFICIENT NUMBER OF COPIES OF THE REPORT SHALL BE
    19  PRINTED FOR DISTRIBUTION TO PERSONS INTERESTED, UPON REQUEST. A
    20  COPY OF THE REPORT SHALL BE FILED WITH THE SECRETARY OF THE
    21  COMMONWEALTH, THE COUNTY CLERK OF EACH COUNTY IN THE
    22  METROPOLITAN AREA AND THE CLERK OF EACH MUNICIPALITY WHICH HAS
    23  GRANTED RIGHTS TO THE AUTHORITY BY ORDINANCE, AND A COPY OF THE
    24  REPORT SHALL BE ADDRESSED TO AND MAILED TO THE MAYOR AND CITY
    25  COUNCIL OR THE GOVERNING BODY OF THE MUNICIPALITY. THE BOARD
    26  FROM TIME TO TIME SHALL MAIL, TO THE PERSONS AND OFFICES
    27  SPECIFIED, COPIES OF THE INTERIM FINANCIAL REPORTS AS MAY BE
    28  PREPARED BY THE AUTHORITY, COPIES OF ALL BYLAWS, RULES AND
    29  REGULATIONS, AND AMENDMENTS THERETO, AND COPIES OF THE ANNUAL
    30  FINANCIAL BUDGETS.
    19930H0878B1976                 - 59 -

     1     (B)  AUDIT.--THE BOARD SHALL APPOINT IN DUE TIME EACH YEAR A
     2  FIRM OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS AS AUDITORS WHO
     3  SHALL EXAMINE THE BOOKS, RECORDS AND ACCOUNTS, OPERATIONS AND
     4  ASSETS AND LIABILITIES OF THE AUTHORITY FOR THE PURPOSE OF
     5  AUDITING AND REPORTING UPON ITS FINANCIAL STATEMENTS FOR SUCH
     6  YEAR. THE AUDITORS SHALL AUDIT THE BOOKS, RECORDS, ACCOUNTS,
     7  OPERATIONS AND ASSETS AND LIABILITIES OF THE AUTHORITY IN
     8  ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS. THE
     9  REPORT OF THE AUDITORS SHALL BE APPENDED TO THE FINANCIAL
    10  STATEMENT.
    11  § 1753.  AID FROM FEDERAL GOVERNMENT.
    12     IN ADDITION TO THE POWERS CONFERRED UPON ANY AUTHORITY BY
    13  OTHER PROVISIONS OF THIS CHAPTER, THE AUTHORITY IS EMPOWERED TO
    14  BORROW OR ACCEPT MONEY OR ACCEPT GRANTS OR OTHER FINANCIAL
    15  ASSISTANCE FROM ANY FEDERAL AGENCY FOR OR IN AID OF THE
    16  AUTHORITY'S OPERATIONS. IT IS THE PURPOSE AND INTENT OF THIS
    17  CHAPTER TO AUTHORIZE THE AUTHORITY, AND THE AUTHORITY IS SO
    18  AUTHORIZED, TO DO ANY AND ALL THINGS NECESSARY OR DESIRABLE TO
    19  SECURE THE FINANCIAL AID OR COOPERATION OF ANY FEDERAL AGENCY IN
    20  ANY OF THE AUTHORITY'S OPERATIONS. THESE THINGS MAY INCLUDE,
    21  WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE POWER TO
    22  CHANGE OR REVISE RATES, FARES AND CHARGES, TO MAKE RELOCATION
    23  PAYMENTS TO FAMILIES, BUSINESSES AND NONPROFIT ORGANIZATIONS, TO
    24  PROVIDE AN AREAWIDE TRANSPORTATION PLAN OR PROGRAM FOR THE
    25  DEVELOPMENT OF A COMPREHENSIVE AND COORDINATED MASS
    26  TRANSPORTATION SYSTEM FOR THE METROPOLITAN AREA, TO CARRY OUT
    27  RESEARCH, DEVELOPMENT AND DEMONSTRATION PROJECTS AND TO PROVIDE
    28  A SHARE OF THE COST OF ANY PROJECT AND ALL AS MAY BE REQUIRED BY
    29  ANY FEDERAL LAW OR BY THE REQUIREMENTS OF ANY FEDERAL AGENCY
    30  AUTHORIZED TO ADMINISTER ANY FEDERAL PROGRAM OF AID TO ANY MASS
    19930H0878B1976                 - 60 -

     1  TRANSPORTATION PROGRAM.
     2                            SUBCHAPTER D
     3                   FUNDS AND BONDS OF AUTHORITIES
     4  SEC.
     5  1761.  MANAGEMENT OF FUNDS.
     6  1762.  SPECIAL FUNDS.
     7  1763.  BONDS.
     8  1764.  CONTRACTS WITH OBLIGEES OF AN AUTHORITY.
     9  1765.  COMMONWEALTH PLEDGES.
    10  1766.  PROVISIONS OF BONDS AND TRUST INDENTURES.
    11  1767.  BONDS TO BE LEGAL INVESTMENTS.
    12  1768.  RIGHTS AND REMEDIES.
    13  1769.  ADDITIONAL REMEDIES CONFERRABLE BY AN AUTHORITY.
    14  1770.  VALIDITY OF PLEDGE.
    15  1771.  SECURITY INTEREST IN FUNDS AND ACCOUNTS.
    16  1772.  PAYMENT OF PROCEEDS OF TAX LEVIED FOR AUTHORITY
    17         PURPOSES.
    18  1773.  LIMITATION ON AUTHORITY UNDER FEDERAL BANKRUPTCY CODE.
    19  § 1761.  MANAGEMENT OF FUNDS.
    20     (A)  GENERAL RULE.--ALL FUNDS OF AN AUTHORITY RECEIVED FROM
    21  ANY SOURCE SHALL BE DELIVERED TO THE TREASURER OF THE AUTHORITY
    22  OR TO SUCH OTHER AGENT OF THE AUTHORITY AS THE BOARD MAY
    23  DESIGNATE. THE FUNDS SHALL BE PROMPTLY DEPOSITED IN THE NAME OF
    24  THE AUTHORITY IN A BANK OR BANKS, BANK AND TRUST COMPANY OR BANK
    25  AND TRUST COMPANIES, TRUST COMPANY OR TRUST COMPANIES IN THIS
    26  COMMONWEALTH CHOSEN BY THE AUTHORITY. THE MONEYS IN THE ACCOUNT
    27  OR ACCOUNTS MAY BE WITHDRAWN OR PAID OUT ONLY BY CHECK OR DRAFT
    28  UPON THE BANK, BANK AND TRUST COMPANY OR TRUST COMPANY, SIGNED
    29  BY THE TREASURER OR OTHER DESIGNATED AGENT OF THE AUTHORITY ON
    30  WARRANT OF THE TREASURER OF THE AUTHORITY AND COUNTERSIGNED BY
    19930H0878B1976                 - 61 -

     1  THE CHAIRMAN OF THE BOARD OR BY SUCH PERSONS AS THE BOARD MAY
     2  AUTHORIZE. MONEYS IN THE ACCOUNT OR ACCOUNTS MAY BE WITHDRAWN OR
     3  PAID OUT BY ELECTRONIC FUNDS TRANSFER ON INSTRUCTIONS SIGNED AND
     4  COUNTERSIGNED IN THE MANNER PROVIDED FOR CHECKS OR DRAFTS. THE
     5  BOARD MAY DESIGNATE ANY OF ITS MEMBERS OR ANY OFFICER OR
     6  EMPLOYEE OF THE AUTHORITY TO AFFIX THE SIGNATURE OF THE CHAIRMAN
     7  TO ANY CHECK OR DRAFT FOR PAYMENT OF SALARIES OR WAGES AND FOR
     8  THE PAYMENT OF ANY OTHER OBLIGATION OF NOT MORE THAN $100,000.
     9  THE GENERAL MANAGER MAY DESIGNATE ANY OFFICER OR EMPLOYEE OF THE
    10  AUTHORITY TO AFFIX THE SIGNATURE OF THE TREASURER TO ANY CHECK
    11  OR DRAFT FOR PAYMENT OF SALARIES OR WAGES AND FOR THE PAYMENT OF
    12  ANY OTHER OBLIGATION OF NOT MORE THAN $100,000.
    13     (B)  MANAGEMENT OF FUNDS.--
    14         (1)  ALL BANK, BANK AND TRUST COMPANY OR TRUST COMPANY
    15     BALANCES OF THE AUTHORITY, TO THE EXTENT THE SAME ARE NOT
    16     INSURED, SHALL BE CONTINUOUSLY SECURED BY A PLEDGE OF DIRECT
    17     OBLIGATIONS OF THE UNITED STATES, OF THE COMMONWEALTH OR OF
    18     ANY MUNICIPALITY OR MUNICIPALITIES IN THE METROPOLITAN AREA
    19     HAVING AN AGGREGATE MARKET VALUE EXCLUSIVE OF ACCRUED
    20     INTEREST AT ALL TIMES AT LEAST EQUAL TO THE BALANCE ON
    21     DEPOSIT IN SUCH BANK, BANK AND TRUST COMPANY OR TRUST
    22     COMPANY. THE SECURITIES SHALL EITHER BE DEPOSITED WITH THE
    23     TREASURER OF THE AUTHORITY OR BE HELD BY A TRUSTEE OR AGENT
    24     SATISFACTORY TO THE AUTHORITY. ALL DEPOSITORY INSTITUTIONS
    25     ARE AUTHORIZED TO GIVE SECURITY FOR THE DEPOSITS.
    26         (2)  SUBJECT TO THE PROVISIONS OF ANY AGREEMENTS WITH
    27     OBLIGEES OF THE AUTHORITY, ALL FUNDS OF THE AUTHORITY,
    28     INCLUDING, BUT NOT LIMITED TO, THE PROCEEDS OF BONDS THAT ARE
    29     NOT REQUIRED FOR IMMEDIATE USE MAY BE INVESTED BY THE BOARD
    30     CONSISTENT WITH SOUND BUSINESS PRACTICE. THE BOARD SHALL
    19930H0878B1976                 - 62 -

     1     PROVIDE FOR AN INVESTMENT PROGRAM SUBJECT TO RESTRICTIONS
     2     CONTAINED IN THIS ACT AND IN ANY OTHER APPLICABLE STATUTE AND
     3     ANY RESOLUTIONS ON THIS SUBJECT ADOPTED BY THE BOARD.
     4     (C)  AUTHORIZED INVESTMENTS.--THE AUTHORIZED TYPES OF
     5  INVESTMENTS FOR AUTHORITY FUNDS SHALL BE ANY OF THE FOLLOWING:
     6         (1)  GOVERNMENT OBLIGATIONS.
     7         (2)  DEBT OBLIGATIONS ISSUED BY ANY OF THE FOLLOWING
     8     FEDERAL AGENCIES OR SUCH OTHER LIKE FEDERAL AGENCIES WHICH
     9     MAY BE DESIGNATED BY THE BOARD: BANK FOR COOPERATIVES,
    10     FEDERAL FARM CREDIT BANKS, FEDERAL FINANCING BANK, FEDERAL
    11     HOME LOAN BANK SYSTEM, FEDERAL NATIONAL MORTGAGE ASSOCIATION,
    12     EXPORT-IMPORT BANK OF THE UNITED STATES, FARMERS HOME
    13     ADMINISTRATION, RESOLUTION FUNDING CORPORATION, SMALL
    14     BUSINESS ADMINISTRATION, STUDENT LOAN MARKETING ASSOCIATION,
    15     INTER-AMERICAN DEVELOPMENT BANK, INTERNATIONAL BANK FOR
    16     RECONSTRUCTION AND DEVELOPMENT, FEDERAL LAND BANKS OR
    17     GOVERNMENT NATIONAL MORTGAGE ASSOCIATION, AND THEIR
    18     PREDECESSOR OR SUCCESSOR AGENCIES.
    19         (3)  SHORT-TERM OR LONG-TERM DEBT OBLIGATIONS OF ANY
    20     STATE OR POLITICAL SUBDIVISION THEREOF OR ANY AGENCY OR
    21     INSTRUMENTALITY OF SUCH A STATE OR POLITICAL SUBDIVISION OR
    22     OF ANY MUNICIPAL CORPORATION, PROVIDED THAT THE OBLIGATIONS
    23     ARE RATED BY A RATING AGENCY IN ANY OF THE THREE HIGHEST
    24     RATING CATEGORIES (WITHOUT REFERENCE TO SUBCATEGORIES)
    25     ASSIGNED BY THE RATING AGENCY.
    26         (4)  RIGHTS TO RECEIVE THE PRINCIPAL OF OR THE INTEREST
    27     ON OBLIGATIONS OF STATES, POLITICAL SUBDIVISIONS, AGENCIES OR
    28     INSTRUMENTALITIES MEETING THE REQUIREMENTS SET FORTH IN
    29     PARAGRAPHS (2) AND (3), WHETHER THROUGH DIRECT OWNERSHIP AS
    30     EVIDENCED BY PHYSICAL POSSESSION OF THE OBLIGATIONS OR
    19930H0878B1976                 - 63 -

     1     UNMATURED INTEREST COUPONS OR BY REGISTRATION AS TO OWNERSHIP
     2     ON THE BOOKS OF THE ISSUER OR ITS DULY AUTHORIZED PAYING
     3     AGENT OR TRANSFER AGENT OR THROUGH THE PURCHASE OF
     4     CERTIFICATES OR OTHER INSTRUMENTS EVIDENCING AN UNDIVIDED
     5     OWNERSHIP INTEREST IN PAYMENTS OF THE PRINCIPAL OF OR
     6     INTEREST ON THE OBLIGATIONS.
     7         (5)  NEGOTIABLE AND NONNEGOTIABLE CERTIFICATES OF
     8     DEPOSIT, TIME DEPOSITS OR OTHER SIMILAR BANKING ARRANGEMENTS
     9     WHICH ARE ISSUED BY BANKS, BANK AND TRUST COMPANIES, TRUST
    10     COMPANIES OR SAVINGS AND LOAN ASSOCIATIONS, PROVIDED THAT,
    11     UNLESS ISSUED BY A QUALIFIED FINANCIAL INSTITUTION, ANY SUCH
    12     CERTIFICATE, DEPOSIT OR OTHER ARRANGEMENT SHALL BE
    13     CONTINUOUSLY SECURED AS TO PRINCIPAL IN THE MANNER AND TO THE
    14     EXTENT PROVIDED IN SUBSECTION (D).
    15         (6)  REPURCHASE AGREEMENTS FOR INVESTMENT SECURITIES
    16     DESCRIBED IN PARAGRAPH (1) OR (2) WITH A QUALIFIED FINANCIAL
    17     INSTITUTION OR WITH DEALERS IN GOVERNMENT BONDS WHICH REPORT
    18     TO, TRADE WITH AND ARE RECOGNIZED AS PRIMARY DEALERS BY A
    19     FEDERAL RESERVE BANK AND ARE MEMBERS OF THE SECURITIES
    20     INVESTORS PROTECTION CORPORATION, PROVIDED THAT THE
    21     REPURCHASE PRICE PAYABLE UNDER ANY AGREEMENT SHALL BE
    22     CONTINUOUSLY SECURED IN THE MANNER AND TO THE EXTENT PROVIDED
    23     IN SUBSECTION (D).
    24         (7)  INVESTMENT AGREEMENTS WITH QUALIFIED FINANCIAL
    25     INSTITUTIONS.
    26         (8)  COMMERCIAL PAPER RATED IN THE HIGHEST RATING
    27     CATEGORY (WITHOUT REFERENCE TO SUBCATEGORIES) BY A RATING
    28     AGENCY.
    29         (9)  SHARES OR CERTIFICATES IN ANY SHORT-TERM INVESTMENT
    30     FUND RATED IN THE HIGHEST RATING CATEGORY (WITHOUT REFERENCE
    19930H0878B1976                 - 64 -

     1     TO SUBCATEGORIES) BY A RATING AGENCY, WHICH SHORT-TERM
     2     INVESTMENT FUND INVESTS SOLELY IN OBLIGATIONS DESCRIBED IN
     3     PARAGRAPHS (1) AND (2).
     4         (10)  DEBT OBLIGATIONS OF ANY FOREIGN GOVERNMENT OR
     5     POLITICAL SUBDIVISION THEREOF OR ANY AGENCY OR
     6     INSTRUMENTALITY OF FOREIGN GOVERNMENT OR POLITICAL
     7     SUBDIVISION, PROVIDED THAT THE OBLIGATIONS ARE RATED BY A
     8     RATING AGENCY (WITHOUT REFERENCE TO SUBCATEGORIES) IN THE
     9     HIGHEST RATING CATEGORY ASSIGNED BY THE RATING AGENCY.
    10         (11)  SUCH OTHER INVESTMENTS WHICH AT THE TIME OF THE
    11     ACQUISITION THEREOF SHALL BE LISTED AS PERMISSIBLE
    12     INVESTMENTS FOR TRUST FUNDS IN AN INDENTURE OR RESOLUTION
    13     WITH RESPECT TO INDEBTEDNESS WHICH IS INCURRED UNDER THIS
    14     CHAPTER.
    15     (D)  SECURITY FOR INVESTMENT SECURITIES.--ANY SECURITY
    16  REQUIRED TO BE MAINTAINED AS COLLATERAL FOR INVESTMENT
    17  SECURITIES IN THE FORM OF CERTIFICATES OF DEPOSIT, TIME
    18  DEPOSITS, OTHER SIMILAR BANKING ARRANGEMENTS AND REPURCHASE
    19  AGREEMENTS DESCRIBED IN SUBSECTION (C)(5) AND (6) SHALL BE
    20  SUBJECT TO THE FOLLOWING REQUIREMENTS:
    21         (1)  THE COLLATERAL SHALL BE IN THE FORM OF OBLIGATIONS
    22     DESCRIBED IN SUBSECTION (C)(1) AND (2), EXCEPT THAT THE
    23     SECURITY FOR CERTIFICATES OF DEPOSIT, TIME DEPOSITS OR OTHER
    24     SIMILAR BANKING ARRANGEMENTS MAY INCLUDE OTHER MARKETABLE
    25     SECURITIES WHICH ARE ELIGIBLE AS SECURITY FOR TRUST FUNDS
    26     UNDER APPLICABLE REGULATIONS OF THE COMPTROLLER OF THE
    27     CURRENCY OF THE UNITED STATES OF AMERICA OR UNDER APPLICABLE
    28     STATE LAWS AND REGULATIONS.
    29         (2)  THE COLLATERAL SHALL HAVE AN AGGREGATE MARKET VALUE,
    30     CALCULATED NOT LESS FREQUENTLY THAN MONTHLY, AT LEAST EQUAL
    19930H0878B1976                 - 65 -

     1     TO THE PRINCIPAL AMOUNT (LESS ANY PORTION INSURED BY THE
     2     FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY COMPARABLE
     3     INSURANCE CORPORATION CHARTERED BY THE UNITED STATES OF
     4     AMERICA) OR THE REPURCHASE PRICE SECURED THEREBY, AS THE CASE
     5     MAY BE. THE INSTRUMENTS GOVERNING THE ISSUANCE OF AND
     6     SECURITY FOR THE INVESTMENT SECURITIES SHALL DESIGNATE THE
     7     PERSON RESPONSIBLE FOR MAKING THE FOREGOING CALCULATIONS.
     8         (3)  THE AUTHORITY SHALL HAVE A PERFECTED SECURITY
     9     INTEREST IN THE COLLATERAL SECURING CERTIFICATES OF DEPOSIT,
    10     TIME DEPOSITS OR OTHER SIMILAR BANKING ARRANGEMENTS, AND THE
    11     COLLATERAL SHALL BE HELD FREE AND CLEAR OF THE CLAIMS OF
    12     THIRD PARTIES. THE COLLATERAL SHALL BE DEPOSITED WITH THE
    13     AUTHORITY, WITH A FEDERAL RESERVE BANK FOR THE ACCOUNT OF THE
    14     AUTHORITY OR WITH A BANK, BANK AND TRUST COMPANY OR TRUST
    15     COMPANY (OTHER THAN THE OBLIGOR) WHICH IS ACTING SOLELY AS
    16     AGENT FOR THE AUTHORITY AND HAS A COMBINED NET CAPITAL AND
    17     SURPLUS EQUAL TO AT LEAST $100,000,000.
    18         (4)  COLLATERAL FOR REPURCHASE AGREEMENTS SHALL BE HELD
    19     FREE AND CLEAR OF THE CLAIMS OF THIRD PARTIES BY THE
    20     AUTHORITY, OR BY A FEDERAL RESERVE BANK FOR THE ACCOUNT OF
    21     THE AUTHORITY, OR BY A BANK, BANK AND TRUST COMPANY OR TRUST
    22     COMPANY WHICH IS ACTING SOLELY AS AGENT FOR THE AUTHORITY AND
    23     HAS A COMBINED NET CAPITAL AND SURPLUS AT LEAST EQUAL TO
    24     $100,000,000. A PERFECTED FIRST PRIORITY SECURITY INTEREST
    25     FOR THE BENEFIT OF THE AUTHORITY SHALL BE CREATED IN THE
    26     COLLATERAL UNDER TITLE 13 (RELATING TO COMMERCIAL CODE) OR
    27     BOOK ENTRY PROCEDURES PRESCRIBED BY APPLICABLE FEDERAL
    28     REGULATIONS.
    29  § 1762.  SPECIAL FUNDS.
    30     AN AUTHORITY, UNDER RESOLUTIONS ADOPTED FROM TIME TO TIME BY
    19930H0878B1976                 - 66 -

     1  THE BOARD, MAY ESTABLISH AND CREATE SUCH SPECIAL FUNDS AS MAY BE
     2  FOUND DESIRABLE BY THE BOARD AND, IN AND BY SUCH RESOLUTIONS,
     3  MAY PROVIDE FOR PAYMENTS INTO ALL SPECIAL FUNDS FROM SPECIFIED
     4  SOURCES WITH SUCH PREFERENCES AND PRIORITIES AS MAY BE DEEMED
     5  ADVISABLE AND MAY PROVIDE FOR THE CUSTODY, DISBURSEMENT AND
     6  APPLICATION OF ANY MONEYS IN ANY SUCH SPECIAL FUNDS CONSISTENT
     7  WITH THE PROVISIONS OF THIS SUBCHAPTER AND CONSISTENT WITH
     8  GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
     9  § 1763.  BONDS.
    10     (A)  GENERAL RULE.--
    11         (1)  THE BONDS OF THE AUTHORITY SHALL BE AUTHORIZED BY
    12     RESOLUTION OF THE BOARD THEREOF AND SHALL BE OF SUCH SERIES,
    13     BEAR SUCH DATE OR DATES, BEAR OR ACCRUE INTEREST AT SUCH RATE
    14     OR RATES, FIXED OR VARIABLE, AS SHALL BE DETERMINED BY THE
    15     BOARD AS NECESSARY TO ISSUE AND SELL THE AUTHORIZED BONDS, BE
    16     IN SUCH DENOMINATIONS, BE IN SUCH FORM, EITHER COUPON OR
    17     FULLY REGISTERED WITHOUT COUPONS, BE IN CERTIFICATED OR BOOK-
    18     ENTRY-ONLY FORM, CARRY SUCH REGISTRATION AND EXCHANGEABILITY
    19     AND INTERCHANGEABILITY PRIVILEGES, BE PAYABLE IN SUCH MEDIUM
    20     OF PAYMENT AND AT SUCH PLACE OR PLACES, BE SUBJECT TO SUCH
    21     TERMS OF REDEMPTION AND BE ENTITLED TO SUCH PRIORITIES OF
    22     PAYMENT IN THE REVENUES OR RECEIPTS OF THE AUTHORITY AS THE
    23     RESOLUTION OR TRUST INDENTURE ADOPTED OR APPROVED BY THE
    24     AUTHORITY MAY PROVIDE.
    25         (2)  THE BONDS SHALL BE SIGNED BY OR SHALL BEAR THE
    26     FACSIMILE SIGNATURES OF SUCH OFFICERS AS THE BOARD SHALL
    27     DETERMINE, AND COUPON BONDS SHALL HAVE ATTACHED THERETO
    28     INTEREST COUPONS BEARING THE FACSIMILE SIGNATURE OF THE
    29     TREASURER OF THE AUTHORITY, AND ALL BONDS SHALL BE
    30     AUTHENTICATED BY AN AUTHENTICATING AGENT, FISCAL AGENT OR
    19930H0878B1976                 - 67 -

     1     TRUSTEE, ALL AS MAY BE PRESCRIBED IN THE RESOLUTION OR TRUST
     2     INDENTURE.
     3         (3)  ANY SUCH BONDS MAY BE ISSUED AND DELIVERED
     4     NOTWITHSTANDING THAT ONE OR MORE OF THE OFFICERS SIGNING
     5     BONDS OR THE TREASURER WHOSE FACSIMILE SIGNATURE SHALL BE
     6     UPON THE COUPON, OR ANY THEREOF, SHALL HAVE CEASED TO BE AN
     7     OFFICER OR OFFICERS AT THE TIME WHEN THE BONDS SHALL ACTUALLY
     8     BE DELIVERED.
     9         (4)  THE PROCEEDS OF AN ISSUE OF BONDS MAY BE USED TO PAY
    10     THE COSTS OF A PROJECT; SUBJECT TO THE LIMITATIONS OF
    11     SUBSECTION (B), TO FINANCE ANY CASH FLOW DEFICIT OF THE
    12     AUTHORITY; TO REIMBURSE ANY COSTS OF A PROJECT INITIALLY PAID
    13     BY THE AUTHORITY OR ANY PERSON; TO FUND ANY REQUIRED
    14     RESERVES; TO CAPITALIZE INTEREST; OR TO PAY COSTS OF ISSUANCE
    15     INCLUDING, BUT NOT LIMITED TO, COSTS OF OBTAINING CREDIT
    16     ENHANCEMENT FOR THE BONDS.
    17     (B)  MATURITY.--BONDS ISSUED TO FINANCE THE COSTS OF A
    18  PROJECT SHALL MATURE AT SUCH TIME OR TIMES NOT EXCEEDING 40
    19  YEARS FROM THEIR RESPECTIVE DATES OF ORIGINAL ISSUE AS THE
    20  AUTHORITY SHALL BY RESOLUTION DETERMINE. BONDS ISSUED IN
    21  ANTICIPATION OF INCOME OF THE AUTHORITY SHALL MATURE WITHIN ONE
    22  FISCAL YEAR AFTER THE FISCAL YEAR OF THE DATE OF ISSUANCE
    23  THEREOF, EXCEPT FOR BONDS ISSUED IN ANTICIPATION OF GRANTS WITH
    24  RESPECT TO THE COST OF A PROJECT, WHICH BONDS SHALL MATURE NO
    25  LATER THAN SIX MONTHS BEYOND THE TIME OF ANTICIPATED RECEIPT OF
    26  THE FINAL PAYMENT OF THE GRANT.
    27     (C)  SALE.--BONDS MAY BE SOLD AT PUBLIC SALE OR INVITED SALE
    28  FOR SUCH PRICE OR PRICES AND AT SUCH RATE OR RATES OF INTEREST
    29  AS THE AUTHORITY SHALL DETERMINE. BONDS MAY BE SOLD AT PRIVATE
    30  SALE BY NEGOTIATION AT SUCH PRICE OR PRICES AND AT SUCH RATE OR
    19930H0878B1976                 - 68 -

     1  RATES OF INTEREST AS THE AUTHORITY SHALL DETERMINE, BUT ONLY IF
     2  THE AUTHORITY MAKES A WRITTEN PUBLIC EXPLANATION OF THE
     3  CIRCUMSTANCES AND JUSTIFICATION FOR THE PRIVATE SALE BY
     4  NEGOTIATION. PENDING THE PREPARATION OF THE DEFINITIVE BONDS,
     5  INTERIM RECEIPTS MAY BE ISSUED TO THE PURCHASER OR PURCHASERS OF
     6  SUCH BONDS AND MAY CONTAIN SUCH TERMS AND CONDITIONS AS THE
     7  AUTHORITY MAY DETERMINE.
     8     (D)  NEGOTIABLE INSTRUMENTS.--BONDS OF AN AUTHORITY SHALL
     9  HAVE THE QUALITIES OF NEGOTIABLE INSTRUMENTS UNDER TITLE 13
    10  (RELATING TO COMMERCIAL CODE).
    11     (E)  REFUNDING.--
    12         (1)  SUBJECT TO THE PROVISIONS OF THE OUTSTANDING BONDS,
    13     NOTES OR OTHER OBLIGATIONS ISSUED UNDER THIS CHAPTER OR PRIOR
    14     ACTS AND SUBJECT TO THE PROVISIONS OF THIS CHAPTER, THE
    15     AUTHORITY SHALL HAVE THE RIGHT AND POWER TO REFUND ANY
    16     OUTSTANDING DEBT, WHETHER THE DEBT REPRESENTS PRINCIPAL OR
    17     INTEREST, IN WHOLE OR IN PART, AT ANY TIME.
    18         (2)  AS USED IN THIS SUBSECTION, "REFUND" AND ITS
    19     VARIATIONS SHALL MEAN THE ISSUANCE AND SALE OF OBLIGATIONS
    20     THE PROCEEDS OF WHICH ARE USED OR ARE TO BE USED FOR THE
    21     PAYMENT OR REDEMPTION OF OUTSTANDING OBLIGATIONS UPON OR
    22     PRIOR TO MATURITY. REFUNDING BONDS SHALL MATURE AT SUCH TIME
    23     OR TIMES NOT EXCEEDING 40 YEARS FROM THEIR DATES OF ORIGINAL
    24     ISSUANCE AS THE AUTHORITY SHALL DETERMINE BY RESOLUTION.
    25     (F)  CREDIT OF COMMONWEALTH AND POLITICAL SUBDIVISIONS NOT
    26  PLEDGED.--UNDER NO CIRCUMSTANCES SHALL ANY BONDS ISSUED BY THE
    27  AUTHORITY OR ANY OTHER OBLIGATION OF THE AUTHORITY BE OR BECOME
    28  AN INDEBTEDNESS OR LIABILITY OF THE COMMONWEALTH OR OF ANY
    29  GOVERNMENT AGENCY, PROVIDED THAT ANY GOVERNMENT AGENCY MAY
    30  GUARANTEE BONDS OF AN AUTHORITY TO THE EXTENT AND FOR THE
    19930H0878B1976                 - 69 -

     1  PURPOSES FOR WHICH THE GOVERNMENT AGENCY MAY MAKE LOANS OR
     2  GRANTS TO AN AUTHORITY.
     3     (G)  NONLIABILITY.--NEITHER THE BOARD MEMBERS, ANY EMPLOYEES
     4  OF THE AUTHORITY NOR ANY PERSON EXECUTING THE BONDS SHALL BE
     5  LIABLE PERSONALLY ON ANY BONDS BY REASON OF THE ISSUANCE
     6  THEREOF. BONDS OF AN AUTHORITY SHALL CONTAIN A STATEMENT OF THE
     7  LIMITATION SET FORTH IN THIS SUBSECTION.
     8     (H)  BONDS DEEMED VALID.--ANY BOND RECITING IN SUBSTANCE THAT
     9  IT HAS BEEN ISSUED BY THE AUTHORITY TO ACCOMPLISH THE PUBLIC
    10  PURPOSES OF THIS SUBCHAPTER SHALL BE CONCLUSIVELY DEEMED IN ANY
    11  SUIT, ACTION OR PROCEEDING INVOLVING THE VALIDITY OR
    12  ENFORCEABILITY OF THE BONDS OR SECURITY THEREFOR TO HAVE BEEN
    13  ISSUED FOR SUCH PURPOSE.
    14     (I)  NOTICE AND CHALLENGES.--
    15         (1)  THE AUTHORITY MAY CAUSE A COPY OF ANY RESOLUTION
    16     AUTHORIZING THE ISSUANCE OF BONDS ADOPTED BY IT TO BE FILED
    17     FOR PUBLIC INSPECTION IN ITS OFFICE AND IN THE OFFICE OF THE
    18     CLERK OF THE GOVERNING BODY OF EACH COUNTY AND THE GOVERNING
    19     BODY OF THE CITY OF THE FIRST CLASS WITHIN ITS SERVICE AREA
    20     AND MAY THEREUPON CAUSE TO BE PUBLISHED IN A NEWSPAPER
    21     PUBLISHED OR CIRCULATING IN ITS SERVICE AREA A NOTICE STATING
    22     THE FACT AND DATE OF THE ADOPTION, THE PLACES WHERE THE
    23     RESOLUTION HAS BEEN SO FILED FOR PUBLIC INSPECTION, THE DATE
    24     OF PUBLICATION OF THE NOTICE AND THAT ANY ACTION OR
    25     PROCEEDING OF ANY KIND OR NATURE IN ANY COURT QUESTIONING THE
    26     VALIDITY OR PROPER AUTHORIZATION OF BONDS PROVIDED FOR BY THE
    27     RESOLUTION, OR THE VALIDITY OF ANY COVENANTS, AGREEMENTS OR
    28     CONTRACT PROVIDED FOR BY SUCH RESOLUTION, SHALL BE COMMENCED
    29     WITHIN 20 DAYS AFTER THE PUBLICATION OF THE NOTICE.
    30         (2)  IF ANY NOTICE SHALL AT ANY TIME BE PUBLISHED AND IF
    19930H0878B1976                 - 70 -

     1     NO ACTION OR PROCEEDING QUESTIONING THE VALIDITY OR PROPER
     2     AUTHORIZATION OF BONDS PROVIDED FOR BY THE RESOLUTION, OR THE
     3     VALIDITY OF ANY COVENANTS, AGREEMENTS OR CONTRACT PROVIDED
     4     FOR BY SUCH RESOLUTION, SHALL BE COMMENCED WITHIN 20 DAYS
     5     AFTER THE PUBLICATION OF THE NOTICE, THEN ALL RESIDENTS,
     6     TAXPAYERS AND OWNERS OF PROPERTY IN THE SERVICE AREA AND
     7     USERS OF THE TRANSPORTATION SYSTEM OF THE AUTHORITY AND ALL
     8     OTHER PERSONS WHATSOEVER SHALL BE FOREVER BARRED AND
     9     FORECLOSED FROM INSTITUTING OR COMMENCING ANY ACTION OR
    10     PROCEEDING IN ANY COURT, OR PLEADING ANY DEFENSE TO ANY
    11     ACTION OR PROCEEDINGS, QUESTIONING THE VALIDITY OR PROPER
    12     AUTHORIZATION OF SUCH BONDS, OR THE VALIDITY OF ANY SUCH
    13     COVENANTS, AGREEMENTS OR CONTRACTS AND SAID BONDS, COVENANTS,
    14     AGREEMENTS AND CONTRACTS, SHALL BE CONCLUSIVELY DEEMED TO BE
    15     VALID AND BINDING OBLIGATIONS IN ACCORDANCE WITH THEIR TERMS
    16     AND TENOR.
    17         (3)  AFTER ISSUANCE OF BONDS, ALL BONDS SHALL BE
    18     CONCLUSIVELY PRESUMED TO BE FULLY AUTHORIZED AND ISSUED BY
    19     ALL THE LAWS OF THIS COMMONWEALTH, AND ANY PERSON SHALL BE
    20     ESTOPPED FROM QUESTIONING THEIR SALE, EXECUTION OR DELIVERY
    21     BY THE AUTHORITY.
    22  § 1764.  CONTRACTS WITH OBLIGEES OF AN AUTHORITY.
    23     EXCEPT AS OTHERWISE PROVIDED IN ANY RESOLUTION OF AN
    24  AUTHORITY AUTHORIZING OR AWARDING BONDS, THE TERMS THEREOF AND
    25  OF THIS CHAPTER AS IN EFFECT WHEN THE BONDS WERE AUTHORIZED
    26  SHALL CONSTITUTE A CONTRACT BETWEEN THE AUTHORITY AND OBLIGEES
    27  OF THE AUTHORITY, SUBJECT TO MODIFICATION IN SUCH MANNER AS THE
    28  RESOLUTION, THE TRUST INDENTURE SECURING SUCH BONDS OR THE BONDS
    29  SHALL PROVIDE.
    30  § 1765.  COMMONWEALTH PLEDGES.
    19930H0878B1976                 - 71 -

     1     (A)  LIMITATION OF POWERS.--
     2         (1)  THE COMMONWEALTH DOES HEREBY PLEDGE TO AND AGREE
     3     WITH ANY PERSON, FIRM OR CORPORATION, GOVERNMENT AGENCY,
     4     WHETHER IN THIS COMMONWEALTH OR ELSEWHERE, OR FEDERAL AGENCY
     5     SUBSCRIBING TO OR ACQUIRING THE BONDS TO BE ISSUED BY THE
     6     AUTHORITY THAT THE COMMONWEALTH WILL NOT LIMIT OR ALTER THE
     7     RIGHTS HEREBY VESTED IN THE AUTHORITY IN ANY MANNER
     8     INCONSISTENT WITH THE OBLIGATIONS OF THE AUTHORITY TO THE
     9     OBLIGEES OF THE AUTHORITY UNTIL ALL BONDS AT ANY TIME ISSUED,
    10     TOGETHER WITH THE INTEREST THEREON, ARE FULLY PAID OR
    11     PROVIDED FOR. THE COMMONWEALTH DOES FURTHER PLEDGE TO AND
    12     AGREE WITH ANY FEDERAL AGENCY THAT, IN THE EVENT THAT ANY
    13     FEDERAL AGENCY SHALL CONTRIBUTE ANY FUNDS FOR THE AUTHORITY
    14     OR ANY PROJECT, THE COMMONWEALTH WILL NOT ALTER OR LIMIT THE
    15     RIGHTS AND POWERS OF THE AUTHORITY IN ANY MANNER WHICH WOULD
    16     BE INCONSISTENT WITH THE DUE PERFORMANCE OF ANY AGREEMENTS
    17     BETWEEN THE AUTHORITY AND ANY FEDERAL AGENCY.
    18         (2)  THE COMMONWEALTH DOES HEREBY PLEDGE TO AND AGREE
    19     WITH ANY PERSON WHO, AS OWNER THEREOF, LEASES OR SUBLEASES
    20     PROPERTY TO OR FROM AN AUTHORITY THAT THE COMMONWEALTH WILL
    21     NOT LIMIT OR ALTER THE RIGHTS AND POWERS HEREBY VESTED IN THE
    22     AUTHORITY OR OTHERWISE CREATED BY THIS ACT IN ANY MANNER
    23     WHICH IMPAIRS THE OBLIGATIONS OF THE AUTHORITY UNTIL ALL
    24     OBLIGATIONS OF THE AUTHORITY UNDER THE LEASE OR SUBLEASE ARE
    25     FULLY MET AND DISCHARGED.
    26     (B)  TAX PROCEEDS.--IF AND TO THE EXTENT THAT THE AUTHORITY
    27  PLEDGES ITS SHARE OF THE PROCEEDS OF A TAX AUTHORIZED BY LAW TO
    28  BE LEVIED FOR AUTHORITY PURPOSES OR MADE AVAILABLE FOR USE BY
    29  THE AUTHORITY AS SECURITY FOR THE PAYMENT OF BONDS ISSUED BY THE
    30  AUTHORITY, THE COMMONWEALTH DOES HEREBY PLEDGE TO AND AGREE WITH
    19930H0878B1976                 - 72 -

     1  ANY PERSON, FIRM OR CORPORATION, GOVERNMENT AGENCY, WHETHER IN
     2  THIS COMMONWEALTH OR ELSEWHERE, OR FEDERAL AGENCY SUBSCRIBING TO
     3  OR ACQUIRING SUCH BONDS TO BE ISSUED BY THE AUTHORITY THAT THE
     4  COMMONWEALTH ITSELF WILL NOT, NOR WILL IT AUTHORIZE ANY
     5  GOVERNMENT ENTITY LEVYING SUCH TAX TO, ABOLISH OR TO REDUCE THE
     6  RATE OF TAX IMPOSED FOR AUTHORITY PURPOSES OR MADE AVAILABLE FOR
     7  USE BY THE AUTHORITY UNTIL ALL BONDS SO SECURED BY THE PLEDGE OF
     8  THE AUTHORITY, TOGETHER WITH THE INTEREST THEREON, ARE FULLY
     9  PAID OR PROVIDED FOR.
    10  § 1766.  PROVISIONS OF BONDS AND TRUST INDENTURES.
    11     IN CONNECTION WITH THE ISSUANCE OF BONDS OR THE INCURRING OF
    12  OBLIGATIONS UNDER LEASES, AND IN ORDER TO SECURE THE PAYMENT OF
    13  THE BONDS AND OBLIGATIONS, THE AUTHORITY, IN ADDITION TO ITS
    14  OTHER POWERS, SHALL HAVE THE POWER TO:
    15         (1)  PLEDGE OR GRANT A SECURITY INTEREST, SENIOR, PARITY
    16     OR SUBORDINATED, IN ALL OR ANY PART OF ITS REVENUES,
    17     INCLUDING, BUT NOT LIMITED TO, THE PROCEEDS OF ANY TAX LEVIED
    18     FOR THE PURPOSES OF OR MADE AVAILABLE FOR USE BY THE
    19     AUTHORITY, TO WHICH ITS RIGHT THEN EXISTS OR MAY THEREAFTER
    20     COME INTO EXISTENCE.
    21         (2)  GRANT A LIEN ON OR A SECURITY INTEREST IN, SENIOR,
    22     PARITY OR SUBORDINATED, IN ALL OR ANY PART OF ITS REAL OR
    23     PERSONAL PROPERTY THEN OWNED OR THEREAFTER ACQUIRED,
    24     PROVIDED, HOWEVER, THAT NO SUCH LIEN SHALL EXTEND TO REAL
    25     PROPERTY OF AN AUTHORITY COMPRISING RIGHTS-OF-WAY, EASEMENTS
    26     OR ANY OTHER INTERESTS IN REAL PROPERTY USED OR USEFUL FOR
    27     PASSAGE OF TRANSPORTATION VEHICLES OR NECESSARY FOR THE SAFE
    28     AND SOUND ROUTING OR CONTROL OF TRANSPORTATION VEHICLES.
    29         (3)  PROVIDE FOR THE ISSUANCE OF UNSECURED BONDS, LIMITED
    30     RECOURSE BONDS OR NONRECOURSE BONDS.
    19930H0878B1976                 - 73 -

     1         (4)  ENTER INTO TRUST INDENTURES SECURING BONDS,
     2     INCLUDING, BUT NOT LIMITED TO, MASTER TRUST INDENTURES.
     3         (5)  COVENANT AGAINST PLEDGING OR GRANTING A LIEN ON OR
     4     SECURITY INTEREST IN ALL OR ANY PART OF ITS REVENUES OR ALL
     5     OR ANY PART OF ITS REAL OR PERSONAL PROPERTY TO WHICH ITS
     6     RIGHT OR TITLE EXISTS OR MAY THEREAFTER COME INTO EXISTENCE,
     7     OR AGAINST PERMITTING OR SUFFERING ANY LIEN ON THE REVENUES
     8     OR PROPERTY, COVENANT WITH RESPECT TO LIMITATIONS ON ITS
     9     RIGHT TO SELL, LEASE OR OTHERWISE DISPOSE OF ANY OF ITS REAL
    10     PROPERTY AND COVENANT AS TO WHICH OTHER OR ADDITIONAL DEBTS
    11     OR OBLIGATIONS MAY BE INCURRED BY IT.
    12         (6)  COVENANT AS TO THE BONDS TO BE ISSUED AND AS TO THE
    13     ISSUANCE OF SUCH BONDS, IN ESCROW OR OTHERWISE, AND AS TO THE
    14     USE AND DISPOSITION OF THE PROCEEDS THEREOF, PROVIDE FOR THE
    15     REPLACEMENT OF LOST, DESTROYED OR MUTILATED BONDS, COVENANT
    16     AGAINST EXTENDING THE TIME FOR THE PAYMENT OF ITS BONDS OR
    17     INTEREST THEREON AND COVENANT FOR THE REDEMPTION OF BONDS AND
    18     PROVIDE THE TERMS AND CONDITIONS THEREOF.
    19         (7)  COVENANT AS TO THE AMOUNT OF REVENUES TO BE RAISED
    20     IN EACH FISCAL YEAR OR OTHER PERIOD OF TIME BY THE AUTHORITY,
    21     AS WELL AS TO THE USE AND DISPOSITION TO BE MADE THEREOF,
    22     CREATE OR AUTHORIZE THE CREATION OF SPECIAL FUNDS FOR DEBT
    23     SERVICE OR OTHER PURPOSES AND COVENANT AS TO THE USE AND
    24     DISPOSITION OF THE MONEYS HELD IN SUCH FUNDS.
    25         (8)  PRESCRIBE THE PROCEDURE, IF ANY, BY WHICH THE TERMS
    26     OF ANY CONTRACT WITH OBLIGEES OF THE AUTHORITY MAY BE
    27     SUPPLEMENTED, AMENDED OR ABROGATED, PRESCRIBE WHICH
    28     SUPPLEMENTS OR AMENDMENTS WILL REQUIRE THE CONSENT OF
    29     OBLIGEES OF THE AUTHORITY AND THE AMOUNT OF BONDS TO BE HELD
    30     BY OBLIGEES TO EFFECT SUCH CONSENT AND PRESCRIBE THE MANNER
    19930H0878B1976                 - 74 -

     1     IN WHICH SUCH CONSENT MAY BE GIVEN.
     2         (9)  COVENANT AS TO THE USE OF ANY OR ALL OF ITS REAL OR
     3     PERSONAL PROPERTY, WARRANT ITS TITLE AND COVENANT AS TO THE
     4     MAINTENANCE OF ITS REAL AND PERSONAL PROPERTY, THE
     5     REPLACEMENT THEREOF, THE INSURANCE TO BE CARRIED THEREON AND
     6     THE USE AND DISPOSITION OF INSURANCE PROCEEDS.
     7         (10)  COVENANT AS TO THE RIGHTS, LIABILITIES, POWERS AND
     8     DUTIES ARISING UPON THE BREACH BY IT OF ANY COVENANT,
     9     CONDITION OR OBLIGATION, PROVIDED THAT THE AUTHORITY SHALL
    10     NOT BE PERMITTED TO COVENANT THAT UPON SUCH BREACH ANY OR ALL
    11     OF ITS BONDS OR OBLIGATIONS THE PAYMENT OF WHICH IS SECURED
    12     SOLELY BY A PLEDGE OF OR SECURITY INTEREST IN THE PROCEEDS OF
    13     A TAX AUTHORIZED BY LAW TO BE LEVIED FOR AUTHORITY PURPOSES
    14     OR MADE AVAILABLE BY AN AUTHORITY SHALL BECOME OR MAY BE
    15     DECLARED DUE BEFORE THE STATED MATURITY THEREOF.
    16         (11)  VEST IN THE OBLIGEES OF THE AUTHORITY, OR ANY
    17     PROPORTION OF THEM, THE RIGHT TO ENFORCE THE PAYMENT OF THE
    18     BONDS OR ANY COVENANTS SECURING OR RELATING TO THE BONDS;
    19     VEST IN A TRUSTEE THE RIGHT, IN THE EVENT OF DEFAULT BY THE
    20     AUTHORITY, TO TAKE POSSESSION AND USE, OPERATE AND MANAGE ANY
    21     REAL OR PERSONAL PROPERTY AND TO COLLECT THE RENTS AND
    22     REVENUES ARISING THEREFROM AND TO DISPOSE OF SUCH MONEYS IN
    23     ACCORDANCE WITH THE AGREEMENT OF THE AUTHORITY WITH SUCH
    24     TRUSTEE; PROVIDE FOR THE POWERS AND DUTIES OF A TRUSTEE AND
    25     TO LIMIT LIABILITIES THEREOF; AND PROVIDE THE TERMS AND
    26     CONDITIONS UPON WHICH THE TRUSTEE OR THE OBLIGEES OF THE
    27     AUTHORITY, OR ANY PROPORTION OF THEM, MAY ENFORCE ANY
    28     COVENANT OR RIGHTS SECURING OR RELATING TO THE BONDS.
    29         (12)  NEGOTIATE AND ENTER INTO INTEREST RATE EXCHANGE
    30     AGREEMENTS, INTEREST RATE CAP, COLLAR, CORRIDOR, CEILING AND
    19930H0878B1976                 - 75 -

     1     FLOOR AGREEMENTS, FORWARD AGREEMENTS, FLOAT AGREEMENTS AND
     2     OTHER SIMILAR ARRANGEMENTS WHICH, IN THE JUDGMENT OF THE
     3     AUTHORITY, WILL ASSIST THE AUTHORITY IN MANAGING THE INTEREST
     4     COSTS OF THE AUTHORITY.
     5         (13)  OBTAIN LETTERS OF CREDIT, BOND INSURANCE AND OTHER
     6     FACILITIES FOR CREDIT ENHANCEMENT AND LIQUIDITY.
     7         (14)  EXERCISE ALL OR ANY PART OR COMBINATION OF THE
     8     POWERS GRANTED IN THIS SECTION TO MAKE COVENANTS OTHER THAN
     9     AND IN ADDITION TO THE COVENANTS EXPRESSLY AUTHORIZED IN THIS
    10     SECTION, TO MAKE SUCH COVENANTS AND TO DO ANY AND ALL SUCH
    11     ACTS AND THINGS AS MAY BE NECESSARY OR CONVENIENT OR
    12     DESIRABLE IN ORDER TO SECURE ITS BONDS, OR, IN THE ABSOLUTE
    13     DISCRETION OF THE AUTHORITY, AS WILL TEND TO ACCOMPLISH THE
    14     PURPOSES OF THIS CHAPTER, BY MAKING THE BONDS MORE MARKETABLE
    15     NOTWITHSTANDING THAT SUCH COVENANTS, ACTS OR THINGS MAY NOT
    16     BE SPECIFICALLY ENUMERATED IN THIS SECTION.
    17         (15)  EXCEPT AS SPECIFICALLY AUTHORIZED BY THIS CHAPTER,
    18     THE REAL PROPERTY OF THE AUTHORITY SHALL NOT BE MORTGAGED AND
    19     SHALL NOT BE SUBJECT TO ATTACHMENT NOR LEVIED UPON BY
    20     EXECUTION OR OTHERWISE.  THE REVENUES OF THE AUTHORITY AND
    21     THE REAL AND TANGIBLE PERSONAL PROPERTY OF THE AUTHORITY
    22     SHALL BE PLEDGED OR OTHERWISE ENCUMBERED ONLY AS EXPRESSLY
    23     PROVIDED IN THIS SECTION AND, EXCEPT TO THE EXTENT NECESSARY
    24     TO EFFECTUATE SUCH PLEDGE OR ENCUMBRANCE, SHALL NOT BE
    25     SUBJECT TO ATTACHMENT NOR LEVIED UPON BY EXECUTION OR
    26     OTHERWISE.
    27  § 1767.  BONDS TO BE LEGAL INVESTMENTS.
    28     BONDS ISSUED UNDER THIS CHAPTER ARE HEREBY MADE SECURITIES IN
    29  WHICH ALL PUBLIC OFFICERS AND THE INSTRUMENTALITIES AND AGENCIES
    30  OF THE COMMONWEALTH AND ITS POLITICAL SUBDIVISIONS, ALL
    19930H0878B1976                 - 76 -

     1  INSURANCE COMPANIES, BANKS, BANK AND TRUST COMPANIES, TRUST
     2  COMPANIES, BANKING ASSOCIATIONS, BANKING CORPORATIONS, SAVINGS
     3  BANKS, INVESTMENT COMPANIES, EXECUTORS, TRUSTEES, THE TRUSTEES
     4  OF ANY RETIREMENT, PENSION OR ANNUITY FUND OR SYSTEM OF THE
     5  COMMONWEALTH AND OTHER FIDUCIARIES MAY PROPERLY AND LEGALLY
     6  INVEST FUNDS, INCLUDING CAPITAL, DEPOSITS OR OTHER FUNDS IN
     7  THEIR CONTROL OR BELONGING TO THEM. THESE BONDS ARE HEREBY MADE
     8  SECURITIES WHICH MAY PROPERLY AND LEGALLY BE DEPOSITED WITH AND
     9  RECEIVED BY ANY COMMONWEALTH OR MUNICIPAL OFFICER OR ANY AGENCY
    10  OR INSTRUMENTALITY OR POLITICAL SUBDIVISION OF THE COMMONWEALTH
    11  FOR ANY PURPOSE FOR WHICH THE DEPOSIT OF BONDS OR OTHER
    12  OBLIGATIONS OF THE COMMONWEALTH NOW OR MAY HEREAFTER BE
    13  AUTHORIZED BY LAW.
    14  § 1768.  RIGHTS AND REMEDIES.
    15     (A)  ADDITIONAL RIGHTS.--AN OBLIGEE OF AN AUTHORITY SHALL
    16  HAVE THE RIGHT, IN ADDITION TO ALL OTHER RIGHTS WHICH MAY BE
    17  CONFERRED ON THE OBLIGEE, SUBJECT ONLY TO ANY CONTRACTUAL
    18  RESTRICTIONS BINDING UPON THE OBLIGEE:
    19         (1)  BY MANDAMUS, SUIT, ACTION OR PROCEEDING AT LAW OR IN
    20     EQUITY, TO COMPEL THE AUTHORITY AND THE MEMBERS, OFFICERS,
    21     AGENTS OR EMPLOYEES THEREOF TO PERFORM EACH AND EVERY TERM,
    22     PROVISION AND COVENANT CONTAINED IN ANY BOND OR CONTRACT OF
    23     THE AUTHORITY WITH OR FOR THE BENEFIT OF THE OBLIGEE AND TO
    24     REQUIRE THE CARRYING OUT OF ANY OR ALL COVENANTS AND
    25     AGREEMENTS OF THE AUTHORITY AND THE FULFILLMENT OF ALL DUTIES
    26     IMPOSED UPON THE AUTHORITY BY THIS CHAPTER.
    27         (2)  BY PROCEEDING IN EQUITY, TO OBTAIN AN INJUNCTION
    28     AGAINST ANY ACTS OR THINGS WHICH MAY BE UNLAWFUL OR THE
    29     VIOLATION OF ANY OF THE RIGHTS OF THE OBLIGEE OF THE
    30     AUTHORITY.
    19930H0878B1976                 - 77 -

     1         (3)  TO REQUIRE THE AUTHORITY TO ACCOUNT AS IF IT WERE
     2     THE TRUSTEE OF AN EXPRESS TRUST FOR THE OBLIGEES OF THE
     3     AUTHORITY FOR ANY PLEDGED REVENUES RECEIVED.
     4         (4)  TO ENFORCE A PLEDGE OF OR SECURITY INTEREST IN
     5     REVENUES OF THE AUTHORITY SECURING PAYMENT OF THE BONDS
     6     AGAINST ALL COMMONWEALTH AND LOCAL PUBLIC OFFICIALS IN
     7     POSSESSION OF ANY REVENUES AT ANY TIME, WHICH REVENUES MAY BE
     8     COLLECTED DIRECTLY FROM SUCH OFFICIALS UPON NOTICE BY THE
     9     OBLIGEE OF THE AUTHORITY OR A TRUSTEE FOR APPLICATION TO THE
    10     PAYMENT OF THE BONDS AS AND WHEN DUE FOR DEPOSITS IN ANY
    11     SINKING, BOND OR DEBT SERVICE FUND ESTABLISHED WITH THE
    12     TRUSTEE AT THE TIMES AND IN THE AMOUNTS SPECIFIED IN THE
    13     BONDS OR THE RESOLUTION OR INDENTURE OR TRUST AGREEMENT
    14     SECURING THE BONDS. ANY COMMONWEALTH OR LOCAL PUBLIC OFFICIAL
    15     IN POSSESSION OF ANY REVENUES SHALL MAKE PAYMENT AGAINST
    16     RECEIPT AND SHALL THEREBY BE DISCHARGED FROM ANY FURTHER
    17     LIABILITY OR RESPONSIBILITY FOR THE REVENUES. IF THE PAYMENT
    18     SHALL BE TO AN OBLIGEE OF THE AUTHORITY, IT SHALL BE MADE
    19     AGAINST SURRENDER OF THE BONDS TO THE PAYOR FOR DELIVERY TO
    20     THE AUTHORITY IN THE CASE OF PAYMENT IN FULL; OTHERWISE, IT
    21     SHALL BE MADE AGAINST PRODUCTION OF THE BONDS FOR NOTATION
    22     THEREON OF THE AMOUNT OF THE PAYMENT. THE PROVISIONS OF THIS
    23     SECTION WITH RESPECT TO THE ENFORCEABILITY AND COLLECTION OF
    24     REVENUES WHICH SECURE BONDS OF THE AUTHORITY SHALL SUPERSEDE
    25     ANY CONTRARY OR INCONSISTENT STATUTORY PROVISION OR RULE OF
    26     LAW.
    27     (B)  APPLICATION OF SECTION.--THIS SECTION SHALL BE CONSTRUED
    28  AND APPLIED TO FULFILL THE LEGISLATIVE PURPOSE OF CLARIFYING AND
    29  FACILITATING THE FINANCING OF THE AUTHORITY OF THE COSTS OF ITS
    30  TRANSPORTATION SYSTEM BY ASSURING TO THE OBLIGEES OF THE
    19930H0878B1976                 - 78 -

     1  AUTHORITY THE FULL AND IMMEDIATE BENEFIT OF THE SECURITY
     2  THEREFOR WITHOUT DELAY, DIMINUTION OR INTERFERENCE BASED ON ANY
     3  STATUTE, DECISION, ORDINANCE OR ADMINISTRATIVE RULE OR PRACTICE.
     4  § 1769.  ADDITIONAL REMEDIES CONFERRABLE BY AN AUTHORITY.
     5     AN AUTHORITY SHALL HAVE POWER, BY ITS RESOLUTION, TRUST
     6  INDENTURE OR LOAN OR LEASE AGREEMENT, TO CONFER UPON ANY
     7  OBLIGEES HOLDING OR REPRESENTING A SPECIFIED PERCENTAGE OF
     8  BONDS, OR UPON ANY BOND INSURER OR PROVIDER OF A LETTER OF
     9  CREDIT OR OTHER CREDIT OR LIQUIDITY FACILITY, THE RIGHT, IN
    10  ADDITION TO ALL RIGHTS THAT MAY OTHERWISE BE CONFERRED, UPON THE
    11  HAPPENING OF AN EVENT OF DEFAULT OR SUCH PARTICULAR EVENTS OF
    12  DEFAULT AS MAY BE SPECIFIED IN SUCH RESOLUTION OR INSTRUMENT, BY
    13  SUIT, ACTION OR PROCEEDING IN ANY COURT OF COMPETENT
    14  JURISDICTION TO OBTAIN THE APPOINTMENT OF A RECEIVER OF ANY REAL
    15  PROPERTY OR PERSONAL PROPERTY OR LEASEHOLD INTEREST OF THE
    16  AUTHORITY AND OF THE RENTS AND PROFITS THEREFROM. IF A RECEIVER
    17  IS APPOINTED, THE RECEIVER MAY ENTER AND TAKE POSSESSION OF SUCH
    18  REAL PROPERTY OR ANY LEASEHOLD INTEREST, OPERATE THE SAME AND
    19  COLLECT AND RECEIVE ALL REVENUES OR OTHER INCOME THEREAFTER
    20  ARISING THEREFROM AND SHALL KEEP SUCH MONEYS IN A SEPARATE
    21  ACCOUNT AND APPLY THE SAME IN ACCORDANCE WITH THE OBLIGATIONS OF
    22  THE AUTHORITY AS THE COURT SHALL DIRECT. NOTHING IN THIS SECTION
    23  OR ANY OTHER SECTION OF THIS CHAPTER SHALL AUTHORIZE ANY
    24  RECEIVER APPOINTED UNDER THIS CHAPTER FOR THE PURPOSE OF
    25  OPERATING AND MAINTAINING ANY FACILITIES OF THE AUTHORITY TO
    26  SELL, ASSIGN, MORTGAGE OR OTHERWISE DISPOSE OF ANY OF THE
    27  ASSETS, OF WHATEVER KIND OR CHARACTER, BELONGING TO THE
    28  AUTHORITY, EXCEPT FOR THE SALE OR OTHER DISPOSITION OF MOVEABLE
    29  EQUIPMENT OR OTHER TANGIBLE PERSONAL PROPERTY IN THE ORDINARY
    30  COURSE OF BUSINESS OR THE SALE OR DISPOSITION OF REAL OR
    19930H0878B1976                 - 79 -

     1  PERSONAL PROPERTY TO THE EXTENT IT IS PLEDGED TO SECURE THE
     2  AUTHORITY'S BONDS. IT IS THE INTENTION OF THIS CHAPTER TO LIMIT
     3  THE POWERS OF THE RECEIVER TO THE OPERATION AND MAINTENANCE OF
     4  THE FACILITIES OF THE AUTHORITY AS THE COURT SHALL DIRECT, AND
     5  NO OBLIGEE OF THE AUTHORITY SHALL EVER HAVE THE RIGHT IN ANY
     6  SUIT, ACTION OR PROCEEDING, AT LAW OR IN EQUITY, TO COMPEL A
     7  RECEIVER, NOR SHALL ANY RECEIVER EVER BE AUTHORIZED OR ANY COURT
     8  BE EMPOWERED TO DIRECT THE RECEIVER, TO SELL, ASSIGN, MORTGAGE
     9  OR OTHERWISE DISPOSE OF ANY ASSETS, OF WHATEVER KIND OR
    10  CHARACTER, BELONGING TO THE AUTHORITY, EXCEPT FOR THE
    11  EXPENDITURE OF FUNDS AND THE SALE OR OTHER DISPOSITION OF
    12  MOVEABLE EQUIPMENT OR OTHER TANGIBLE PERSONAL PROPERTY IN THE
    13  ORDINARY COURSE OF BUSINESS OR THE SALE OR DISPOSITION OF REAL
    14  OR PERSONAL PROPERTY TO THE EXTENT IT IS PLEDGED TO SECURE THE
    15  AUTHORITY'S BONDS.
    16  § 1770.  VALIDITY OF PLEDGE.
    17     ANY PLEDGE OF OR GRANT OF A LIEN ON OR SECURITY INTEREST IN
    18  REVENUES OF AN AUTHORITY OR REAL OR PERSONAL PROPERTY OF AN
    19  AUTHORITY MADE BY AN AUTHORITY SHALL BE VALID AND BINDING FROM
    20  THE TIME WHEN THE PLEDGE IS MADE, THE REVENUES OR OTHER PROPERTY
    21  SO PLEDGED AND THEREAFTER RECEIVED BY THE AUTHORITY MAKING SUCH
    22  PLEDGE SHALL IMMEDIATELY BE SUBJECT TO THE LIEN OF ANY SUCH
    23  PLEDGE, LIEN OR SECURITY INTEREST WITHOUT ANY PHYSICAL DELIVERY
    24  THEREOF OR FURTHER ACT, AND THE LIEN OF ANY SUCH PLEDGE OR
    25  SECURITY INTEREST SHALL BE VALID AND BINDING AS AGAINST ALL
    26  PARTIES HAVING CLAIMS OF ANY KIND IN TORT, CONTRACT OR OTHERWISE
    27  AGAINST THE AUTHORITY IRRESPECTIVE OF WHETHER THE PARTIES HAVE
    28  NOTICE THEREOF. NEITHER THE RESOLUTION NOR ANY OTHER INSTRUMENT
    29  OF THE AUTHORITY BY WHICH A PLEDGE, LIEN OR SECURITY INTEREST IS
    30  CREATED NEED BE RECORDED OR FILED TO PERFECT SUCH PLEDGE OR
    19930H0878B1976                 - 80 -

     1  SECURITY INTEREST.
     2  § 1771.  SECURITY INTEREST IN FUNDS AND ACCOUNTS.
     3     ANY MONEYS DEPOSITED IN ANY FUND CREATED BY THE AUTHORITY
     4  PLEDGED TO BE USED TO PAY DEBT SERVICE ON BONDS OF THE
     5  AUTHORITY, INCLUDING ANY SINKING FUND OR DEBT SERVICE RESERVE
     6  FUND, AND ALL INVESTMENTS AND PROCEEDS OF INVESTMENTS THEREOF,
     7  SHALL, WITHOUT FURTHER ACTION OR FILING, BE SUBJECTED TO A
     8  PERFECTED SECURITY INTEREST FOR THE OBLIGEES OF THE AUTHORITY
     9  WITH RESPECT TO THE BONDS UNTIL SUCH MONEYS OR INVESTMENTS SHALL
    10  BE PROPERLY DISBURSED IN ACCORDANCE WITH THIS CHAPTER AND
    11  SUBJECT TO THE TERMS OF ANY TRUST INDENTURE OR OTHER CONTRACT
    12  BETWEEN THE AUTHORITY AND THE OBLIGEES OF THE AUTHORITY WITH
    13  RESPECT TO THE BONDS.
    14  § 1772.  PAYMENT OF PROCEEDS OF TAX LEVIED FOR AUTHORITY
    15             PURPOSES.
    16     THE PROCEEDS OF ANY TAX LEVIED FOR AUTHORITY PURPOSES OR MADE
    17  AVAILABLE FOR USE BY THE AUTHORITY AND COLLECTED BY THE
    18  DEPARTMENT OF REVENUE, WHICH TAX PROCEEDS SHALL HAVE BEEN
    19  PLEDGED BY AN AUTHORITY TO SECURE ITS BONDS, SHALL BE
    20  TRANSFERRED BY THE STATE TREASURER TO OR UPON THE ORDER OF THE
    21  AUTHORITY AT THE TIMES PROVIDED BY LAW, SUBJECT TO ANY
    22  LIMITATIONS SET FORTH IN THE RESOLUTION OF THE AUTHORITY
    23  AUTHORIZING THE BONDS.
    24  § 1773.  LIMITATION ON AUTHORITY UNDER FEDERAL BANKRUPTCY CODE.
    25     SO LONG AS AN AUTHORITY SHALL HAVE OUTSTANDING ANY BONDS
    26  ISSUED UNDER THIS CHAPTER, THE AUTHORITY SHALL NOT BE AUTHORIZED
    27  TO FILE A PETITION FOR RELIEF UNDER 11 U.S.C. CHAPTER 9
    28  (RELATING TO ADJUSTMENT OF DEBTS OF A MUNICIPALITY), AND NO
    29  PUBLIC OFFICER OR AGENCY OR INSTRUMENTALITY OF THE COMMONWEALTH
    30  SHALL AUTHORIZE THE AUTHORITY TO BECOME A DEBTOR UNDER 11 U.S.C.
    19930H0878B1976                 - 81 -

     1  CHAPTER 9 SO LONG AS ANY BONDS ISSUED UNDER THIS CHAPTER ARE
     2  OUTSTANDING.
     3                            SUBCHAPTER E
     4                      MISCELLANEOUS PROVISIONS
     5  SEC.
     6  1781.  EXEMPTION FROM TAXATION.
     7  1782.  RIGHTS AND REMEDIES PRESERVED.
     8  1783.  OFFICERS AND EMPLOYEES CONTINUED.
     9  1784.  CONTINUANCE OF BONDS.
    10  1785.  REPEAL.
    11  § 1781.  EXEMPTION FROM TAXATION.
    12     THE EFFECTUATION OF THE AUTHORIZED PURPOSES OF AN AUTHORITY
    13  CREATED OR CONTINUED UNDER THIS CHAPTER SHALL AND WILL BE IN ALL
    14  RESPECTS FOR THE BENEFIT OF THE PEOPLE OF THIS COMMONWEALTH, FOR
    15  THE INCREASE OF THEIR COMMERCE AND PROSPERITY AND FOR THE
    16  IMPROVEMENTS OF THEIR HEALTH AND LIVING CONDITIONS, AND, SINCE
    17  AN AUTHORITY WILL, AS A PUBLIC INSTRUMENTALITY OF THE
    18  COMMONWEALTH, BE PERFORMING ESSENTIAL GOVERNMENTAL FUNCTIONS IN
    19  EFFECTUATING SUCH PURPOSES, SUCH AN AUTHORITY SHALL NOT BE
    20  REQUIRED TO PAY ANY TAXES OR ASSESSMENTS OF ANY KIND OR NATURE
    21  WHATSOEVER, NOW IN EXISTENCE OR TO BE ENACTED IN THE FUTURE,
    22  WHETHER IMPOSED BY THE COMMONWEALTH OR BY ANY GOVERNMENT AGENCY
    23  UPON ANY PROPERTY OR THE INCOME THEREFROM ACQUIRED OR USED OR
    24  PERMITTED TO BE USED BY AN AUTHORITY FOR SUCH PURPOSES, AND THE
    25  BONDS ISSUED BY ANY AUTHORITY, THEIR TRANSFER AND THE INCOME
    26  THEREFROM, INCLUDING ANY PROFITS MADE ON THE SALE THEREOF, SHALL
    27  AT ALL TIMES BE FREE FROM STATE AND LOCAL TAXATION WITHIN THIS
    28  COMMONWEALTH. THIS EXEMPTION SHALL NOT EXTEND TO GIFT, ESTATE,
    29  SUCCESSION OR INHERITANCE TAXES OR ANY OTHER TAXES NOT LEVIED
    30  DIRECTLY ON THE BONDS, THE TRANSFER THEREOF, THE INCOME
    19930H0878B1976                 - 82 -

     1  THEREFROM OR THE REALIZATION OF PROFITS ON THE SALE THEREOF.
     2  § 1782.  RIGHTS AND REMEDIES PRESERVED.
     3     THE PROVISIONS OF THIS CHAPTER SHALL NOT IN ANY WAY IMPAIR OR
     4  IN ANY MANNER AFFECT THE RIGHTS AND REMEDIES OF OBLIGEES OF A
     5  CONTINUED AUTHORITY, AND, NOTWITHSTANDING ANY OTHER PROVISION OF
     6  THIS CHAPTER, ALL SUCH RIGHTS AND REMEDIES SHALL BE PRESERVED BY
     7  THIS CHAPTER AND SHALL BE AND SHALL REMAIN VALID, BINDING AND
     8  ENFORCEABLE IN ALL RESPECTS. AS USED IN THIS SECTION, "OBLIGEES
     9  OF A CONTINUED AUTHORITY" SHALL MEAN THE HOLDERS OF ANY NOTES,
    10  BONDS, REFUNDING NOTES AND BONDS, INTERIM CERTIFICATES,
    11  DEBENTURES AND OTHER EVIDENCES OF INDEBTEDNESS, OBLIGEES OF
    12  CONTRACTS OR OTHER OBLIGATIONS OF AN AUTHORITY ESTABLISHED UNDER
    13  THE FORMER PROVISIONS OF ARTICLE III OF THE ACT OF JANUARY 22,
    14  1968 (P.L.42, NO.8), KNOWN AS THE PENNSYLVANIA URBAN MASS
    15  TRANSPORTATION LAW, OR THE FORMER PROVISIONS OF CHAPTER 15
    16  (RELATING TO METROPOLITAN TRANSPORTATION AUTHORITIES) AND
    17  CONTINUED UNDER SECTION 1711 (RELATING TO CREATION OF
    18  METROPOLITAN TRANSPORTATION AUTHORITIES).
    19  § 1783.  OFFICERS AND EMPLOYEES CONTINUED.
    20     WITH RESPECT TO THE OFFICERS AND EMPLOYEES OF ANY AUTHORITY
    21  ESTABLISHED UNDER THE FORMER PROVISIONS OF ARTICLE III OF THE
    22  ACT OF JANUARY 22, 1968 (P.L.42, NO.8), KNOWN AS THE
    23  PENNSYLVANIA URBAN MASS TRANSPORTATION LAW OR THE FORMER
    24  PROVISIONS OF CHAPTER 15 (RELATING TO METROPOLITAN
    25  TRANSPORTATION AUTHORITIES) ALL SUCH OFFICERS SHALL CONTINUE IN
    26  OFFICE UNTIL THE EXPIRATION OF THEIR RESPECTIVE TERMS OF OFFICE,
    27  AND ALL EMPLOYEES SHALL CONTINUE IN EMPLOYMENT UNDER THE TERMS
    28  AND CONDITIONS OF THEIR RESPECTIVE CONTRACTS OR AGREEMENTS OF
    29  EMPLOYMENT; AND ALL OFFICERS AND EMPLOYEES SHALL EXERCISE THE
    30  POWERS, FUNCTIONS AND DUTIES OF THEIR RESPECTIVE OFFICES OR
    19930H0878B1976                 - 83 -

     1  EMPLOYMENT UNDER THIS CHAPTER.
     2  § 1784.  CONTINUANCE OF BONDS.
     3     BONDS, CONTRACTS AND OBLIGATIONS OF AN AUTHORITY CONTINUED
     4  UNDER THIS CHAPTER WHICH CONTRACTS AND OBLIGATIONS ARE IN EFFECT
     5  OR OUTSTANDING ON THE EFFECTIVE DATE OF THIS ACT SHALL CONTINUE
     6  IN FULL FORCE AND EFFECT.
     7  § 1785.  REPEAL.
     8     ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS THEY ARE
     9  INCONSISTENT WITH THIS ACT.
    10     SECTION 4 5.  SECTIONS 1532 AND 1550 OF TITLE 75 ARE AMENDED   <--
    11  BY ADDING SUBSECTIONS TO READ:
    12  § 1532.  Revocation or suspension of operating privilege.
    13     * * *
    14     (c)  Suspension.--The department shall suspend the operating
    15  privilege of any person upon receiving a certified record of the
    16  person's conviction of any offense involving the possession,
    17  sale, delivery, offering for sale, holding for sale or giving
    18  away of any controlled substance under the laws of the United
    19  States, this Commonwealth or any other state.
    20         (1)  The period of suspension shall be as follows:
    21             (i)  For a first offense, a period of six months from
    22         the date of the suspension.
    23             (ii)  For a second offense, a period of one year from
    24         the date of the suspension.
    25             (iii)  For a third and any subsequent offense
    26         thereafter, a period of two years from the date of the
    27         suspension.
    28         (2)  For the purposes of this subsection, the term
    29     "conviction" shall include any conviction or adjudication of
    30     delinquency for any of the offenses listed in paragraph (1),
    19930H0878B1976                 - 84 -

     1     whether in this Commonwealth or any other Federal or state
     2     court.
     3  § 1550.  Judicial review.
     4     * * *
     5     (d)  Out-of-State documentation.--In any proceeding under
     6  this section, documents received by the department from the
     7  courts or administrative bodies of other states or the Federal
     8  Government shall be admissible into evidence to support the
     9  department's case. In addition, the department may treat the
    10  received documents as documents of the department and use any of
    11  the methods of storage permitted under the provisions of 42
    12  Pa.C.S. § 6109 (relating to photographic copies of business and
    13  public records), and may reproduce such documents in accordance
    14  with the provisions of 42 Pa.C.S. § 6103 (relating to proof of
    15  official records). In addition, if the department receives
    16  information from courts or administrative bodies of other states
    17  or the Federal Government by means of electronic transmission,
    18  it may certify that it has received the information by means of
    19  electronic transmission and that certification shall be prima
    20  facie proof of the adjudication and facts contained in such an
    21  electronic transmission.
    22     Section 2 5.  Section 6323(1) of Title 75 is amended to read:  <--
    23     SECTION 6.  SECTIONS 6323(1) AND 9511(H) OF TITLE 75 ARE       <--
    24  AMENDED TO READ:
    25  § 6323.  Reports by courts.
    26     Subject to any inconsistent procedures and standards relating
    27  to reports and transmission of funds prescribed pursuant to
    28  Title 42 (relating to judiciary and judicial procedure):
    29         (1)  The clerk of any court of this Commonwealth, within
    30     ten days after final judgment of conviction or acquittal or
    19930H0878B1976                 - 85 -

     1     other disposition of charges under any of the provisions of
     2     this title or under section 13 of the act of April 14, 1972
     3     (P.L.233, No.64), known as The Controlled Substance, Drug,
     4     Device and Cosmetic Act, including an adjudication of
     5     delinquency or the granting of a consent decree, shall send
     6     to the department a record of the judgment of conviction,
     7     acquittal or other disposition.
     8         * * *
     9  § 9511.  ALLOCATION OF PROCEEDS.                                  <--
    10     * * *
    11     (H)  ALLOCATION TO PENNSYLVANIA TURNPIKE COMMISSION.--AN
    12  AMOUNT EQUAL TO 14% OF THE PROCEEDS DEPOSITED IN THE MOTOR
    13  LICENSE FUND PURSUANT TO THE "OIL COMPANY FRANCHISE TAX FOR
    14  HIGHWAY MAINTENANCE AND CONSTRUCTION" IMPOSED UNDER SECTION
    15  9502(A)(2), WHICH AMOUNT IS TO BE DISTRIBUTED UNDER SECTION
    16  9502(A)(2)(VI) FOR TOLL ROADS DESIGNATED UNDER THE ACT OF
    17  SEPTEMBER 30, 1985 (P.L.240, NO.61), KNOWN AS THE TURNPIKE
    18  ORGANIZATION, EXTENSION AND TOLL ROAD CONVERSION ACT, IS HEREBY
    19  APPROPRIATED MONTHLY TO THE PENNSYLVANIA TURNPIKE COMMISSION.
    20  THE COMMONWEALTH DOES HEREBY PLEDGE TO AND AGREE WITH ANY
    21  PERSON, FIRM OR CORPORATION ACQUIRING ANY BONDS TO BE ISSUED BY
    22  THE PENNSYLVANIA TURNPIKE COMMISSION AND SECURED IN WHOLE OR IN
    23  PART BY A PLEDGE OF THE PORTION OF THE TAX KNOWN AS THE "OIL
    24  COMPANY FRANCHISE TAX FOR HIGHWAY MAINTENANCE AND CONSTRUCTION"
    25  WHICH IS IMPOSED BY SECTION 9502(A)(2) AND DISTRIBUTED IN THE
    26  MANNER INDICATED IN THAT SECTION, INCLUDING 14% FOR TOLL ROADS
    27  DESIGNATED UNDER THE TURNPIKE ORGANIZATION, EXTENSION AND TOLL
    28  ROAD CONVERSION ACT, THAT THE COMMONWEALTH WILL NOT LIMIT OR
    29  ALTER THE RIGHTS VESTED IN THE PENNSYLVANIA TURNPIKE COMMISSION
    30  TO THE APPROPRIATION AND DISTRIBUTION OF SUCH TAX REVENUES.
    19930H0878B1976                 - 86 -

     1     Section 3 6 7.  Section 13(m) of the act of April 14, 1972     <--
     2  (P.L.233, No.64), known as The Controlled Substance, Drug,
     3  Device and Cosmetic Act, is repealed.
     4     Section 4 7 8.  The provisions of 75 Pa.C.S. §§ 1532(c) and    <--
     5  1550(d) and the repeal of the provisions of section 13(m) of the
     6  act of April 14, 1972 (P.L.233, No.64), known as The Controlled
     7  Substance, Drug, Device and Cosmetic Act, by the act shall not
     8  affect any act done, liability incurred or right accrued or
     9  vested, or affect any suit or prosecution pending or be
    10  instituted to enforce any right or penalty, or to punish any
    11  offense, under the authority of any statute repealed by this
    12  act.
    13     Section 5.  This act shall take effect in 60 days.             <--
    14     SECTION 8 9.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:           <--
    15         (1)  THE AMENDMENTS OF TITLE 74 SHALL TAKE EFFECT
    16     IMMEDIATELY.
    17         (2)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
    18     DAYS.








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