SENATE AMENDED PRIOR PRINTER'S NOS. 957, 1975 PRINTER'S NO. 1976
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. A26L75RZ/19930H0878B1976 - 87 -