PRINTER'S NO. 2575
No. 1878 Session of 2007
INTRODUCED BY HUTCHINSON, McILHATTAN, PHILLIPS, BENNINGHOFF,
EVERETT, RAPP, R. STEVENSON, BROOKS, FAIRCHILD, CAUSER,
BASTIAN, BOBACK, BOYD, CLYMER, CREIGHTON, CUTLER, ELLIS,
GABIG, HERSHEY, MANTZ, MARSHALL, METCALFE, MILLARD, MUSTIO,
PERRY, ROAE, ROHRER, SCAVELLO, SWANGER, TRUE, TURZAI,
VULAKOVICH AND HANNA, OCTOBER 3, 2007
REFERRED TO COMMITTEE ON TRANSPORTATION, OCTOBER 3, 2007
AN ACT
1 Amending Titles 53 (Municipalities Generally), 74
2 (Transportation) and 75 (Vehicles) of the Pennsylvania
3 Consolidated Statutes, repealing provisions relating to local
4 taxation for public transportation assistance and for
5 minority and women-owned business participation; providing
6 for public transportation assistance; and repealing
7 provisions relating to sustainable mobility options; turnpike
8 and turnpike commission standards of conduct; providing for
9 Pennsylvania Turnpike; and repealing provisions relating to
10 definitions, authorizations, conversion to toll roads,
11 conversion of Interstate 80, application, lease of Interstate
12 80, payments, other interstate highways, fund distribution,
13 impact, financial plan, imposition, allocation of proceeds,
14 special revenue bonds, expenses, application of proceeds of
15 obligations, trust indenture, exemption, pledged revenues,
16 special revenue refunding bonds, remedies, Motor License Fund
17 proceeds, construction and funding.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. Chapter 86 of Title 53 of the Pennsylvania
21 Consolidated Statutes, added July 18, 2007 (P.L.169, No.44), is
22 repealed:
23 [CHAPTER 86
1 TAXATION FOR PUBLIC TRANSPORTATION
2 § 8601. Scope of chapter.
3 This chapter relates to local funding for sustainable
4 mobility options.
5 § 8602. Local financial support.
6 (a) Imposition.--Notwithstanding any other provision of law,
7 a county of the second class may obtain financial support for
8 transit systems by imposing one or more of the taxes under
9 subsection (b). Money obtained from the imposition shall be
10 deposited into a restricted account of the county.
11 (b) Taxes.--
12 (1) A county of the second class may, by ordinance,
13 impose any of the following taxes:
14 (i) A tax on the sale at retail of liquor and malt
15 and brewed beverages within the county. The ordinance
16 shall be modeled on the act of June 10, 1971 (P.L.153,
17 No.7), known as the First Class School District Liquor
18 Sales Tax Act of 1971; and the rate of tax authorized
19 under this subparagraph may not exceed the rate
20 established under that act.
21 (ii) An excise tax on each renting of a rental
22 vehicle in the county. The rate of tax authorized under
23 this subparagraph may not exceed the rate established
24 under section 2301(e) of the act of March 4, 1971 (P.L.6,
25 No.2), known as the Tax Reform Code of 1971. As used in
26 this subparagraph, the term "rental vehicle" has the
27 meaning given to it in section 1601-A of the Tax Reform
28 Code of 1971.
29 (2) (Reserved).
30 (c) Definition.--For purposes of this section, the term
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1 "county of the second class" shall not include a county of the
2 second class A.]
3 Section 2. Section 303 of Title 74, added July 18, 2007
4 (P.L.169, No.44), is repealed:
5 [§ 303. Minority and women-owned business participation.
6 (a) General rule.--In administering the provisions of this
7 title, the department and any local transportation organization
8 shall:
9 (1) Be responsible for ensuring that all competitive
10 contract opportunities issued by the department or local
11 transportation organization seek to maximize participation by
12 minority-owned and women-owned businesses and other
13 disadvantaged businesses.
14 (2) Give consideration, when possible and cost
15 effective, to contractors offering to utilize minority-owned
16 and women-owned businesses and disadvantaged businesses in
17 the selection and award of contracts.
18 (3) Ensure that the department's and local
19 transportation organizations's commitment to the minority-
20 owned and women-owned business program is clearly understood
21 and appropriately implemented and enforced by all department
22 and local transportation organization employees.
23 (4) Designate a responsible official to supervise the
24 department and local transportation organization minority-
25 owned and women-owned business program and ensure compliance
26 within the department or local transportation organization.
27 (5) Furnish the Department of General Services, upon
28 request, all requested information or assistance.
29 (6) Recommend sanctions to the Secretary of General
30 Services, as may be appropriate, against businesses that fail
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1 to comply with the policies of the Commonwealth minority-
2 owned and women-owned business program. This paragraph shall
3 not apply to a local transportation organization.
4 (b) Definitions.--As used in this section, the following
5 words and phrases shall have the meanings given to them in this
6 subsection:
7 "Disadvantaged business." A business that is owned or
8 controlled by a majority of persons, not limited to members of
9 minority groups, who are subject to racial or ethnic prejudice
10 or cultural bias.
11 "Local transportation organization." Any of the following:
12 (1) A political subdivision or a public transportation
13 authority, port authority or redevelopment authority
14 organized under the laws of this Commonwealth or pursuant to
15 an interstate compact or otherwise empowered to render,
16 contract for the rendering of or assist in the rendering of
17 transportation service in a limited area in this
18 Commonwealth, even though it may also render or assist in
19 rendering transportation service in adjacent states.
20 (2) A nonprofit association that directly or indirectly
21 provides public transportation service.
22 (3) A nonprofit association of public transportation
23 providers operating within this Commonwealth.
24 "Minority-owned business." A business owned and controlled
25 by a majority of individuals who are African Americans, Hispanic
26 Americans, Native Americans, Asian Americans, Alaskans or
27 Pacific Islanders.
28 "Women-owned business." A business owned and controlled by a
29 majority of individuals who are women.]
30 Section 3. Title 74 is amended by adding a chapter to read:
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1 CHAPTER 13
2 PUBLIC TRANSPORTATION ASSISTANCE
3 Sec.
4 1301. Definitions.
5 1302. Program authorizations.
6 1303. Annual appropriation and computation of subsidy.
7 1304. Grant proposals.
8 1305. Rules and regulations.
9 1306. Cooperation with other governments and private
10 interests.
11 1307. General authority of department.
12 1308. Grants by counties or municipalities.
13 1309. Limitation on decisions, findings and regulations of
14 department.
15 1310. Distribution of funding.
16 1310.1. Supplemental public transportation assistance funding.
17 1311. Use of funds distributed.
18 1312. Community transportation programs.
19 1313. Additional programs.
20 1315. Public transportation grants management accountability.
21 § 1301. 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 "Asset maintenance costs." All vehicle maintenance expenses,
26 nonvehicle maintenance expenses and materials and supplies used
27 in the operation of local transportation organizations and
28 transportation companies.
29 "Average fare." Total passenger revenue divided by the total
30 number of fare-paying passengers. With regard to the calculation
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1 of average fare or base fare for the reimbursement of losses
2 resulting from free service to senior citizens authorized by
3 this part, the Department of Transportation shall not
4 differentiate between bus services provided within an operating
5 unit or division of any transit agency for any reason. Services
6 funded under either the State urban or rural operating
7 assistance programs will be considered separate operating units.
8 "Bus." A motor vehicle designed for carrying 15 or more
9 passengers, exclusive of the driver, and used for the
10 transportation of persons, and a motor vehicle, other than a
11 taxicab, designed and used for the transportation of persons for
12 compensation.
13 "Capital project." Any system of public passenger or public
14 passenger and rail transportation, including, but not limited
15 to, any railway, street railway, subway, elevated and monorail
16 passenger or passenger and rail rolling stock, including self-
17 propelled and gallery cars, locomotives, passenger buses and
18 wires, poles and equipment for the electrification of any of the
19 foregoing, rails, tracks, roadbeds, guideways, elevated
20 structures, buildings, stations, terminals, docks, shelters,
21 airports and parking areas for use in connection with public
22 passenger or public passenger and rail transportation systems,
23 interconnecting lines and tunnels to provide passenger or
24 passenger and rail service connections between transportation
25 systems, transportation routes, corridors, and rights-of-way for
26 any thereof (but not for public highways), signal and
27 communication systems necessary or desirable for the
28 construction, operation or improvement of the public passenger
29 or passenger and rail transportation system involved, or any
30 improvement of or overhaul of any vehicle, equipment or
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1 furnishings for any of the foregoing or any part, or fractional
2 and undivided co-ownership or leasehold interest in any one or
3 combination of any of the foregoing, that may be designated as a
4 capital project by the secretary.
5 "Class 1 transit entity." A local transportation
6 organization or transportation company operating 1,000 or more
7 transit vehicles in the peak period.
8 "Class 2 transit entity." A local transportation
9 organization or transportation company operating more than 300
10 but less than 1,000 transit vehicles in the peak period.
11 "Class 3 transit entity." A local transportation
12 organization or transportation company operating 300 or less
13 fixed-route transit vehicles in the peak period serving an
14 urbanized area.
15 "Class 4 transit entity." Any local transportation
16 organization or transportation company which serves a
17 nonurbanized area and, during the 1990-1991 fiscal year,
18 received or was approved to receive funding under the act of
19 February 11, 1976 (P.L.14, No.10), known as the Pennsylvania
20 Rural and Intercity Common Carrier Surface Transportation
21 Assistance Act.
22 "Class 4 transit entity adjusted base grant." The State
23 subsidy for operating expenses a Class 4 transit entity received
24 during the 1990-1991 fiscal year, including any funds
25 appropriated under the act of February 11, 1976 (P.L.14, No.10),
26 known as the Pennsylvania Rural and Intercity Common Carrier
27 Surface Transportation Assistance Act; adjusted for factors
28 which, in the judgment of the Department of Transportation,
29 caused significant increases or decreases in the amount of State
30 subsidy to a Class 4 transit entity during the 1990-1991 fiscal
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1 year; and further adjusted, with respect to any Class 4 transit
2 entity which received a State subsidy for less than the entire
3 1990-1991 fiscal year, to reflect the annual subsidy that Class
4 4 transit entity would have received during that fiscal year if
5 it had received a State subsidy for that entire fiscal year.
6 "Community transportation programs." Programs eligible to be
7 funded pursuant to section 1312 (relating to community
8 transportation programs).
9 "Construction." The term includes acquisition as well as
10 construction.
11 "Counties." The term includes any county.
12 "County transportation system." Buses, vans or other transit
13 vehicles purchased, maintained and operated by any county and
14 used to provide free or reduced rate transportation within the
15 county to persons 65 years of age or older.
16 "Department." The Department of Transportation of the
17 Commonwealth.
18 "Equipment" and "furnishings." Any equipment and furnishings
19 whatsoever as may be deemed desirable and required for a capital
20 project and approved by the Department of Transportation for the
21 use and occupancy of that capital project. The terms include the
22 installation of such equipment and furnishings.
23 "Federal agency." The United States of America, the
24 President of the United States of America and any department of,
25 or corporation, agency or instrumentality heretofore or
26 hereafter created, designated or established by, the United
27 States of America.
28 "Fixed-route public transportation services." Regularly
29 scheduled transportation that is available to the general public
30 and is provided according to published schedules along
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1 designated published routes with specified stopping points for
2 the taking on and discharging of passengers, including public
3 bus and commuter rail systems. The term does not include
4 exclusive ride taxi service, charter or sightseeing services,
5 nonpublic transportation or school bus or limousine services.
6 "Fund." The Public Transportation Assistance Fund.
7 "Improvement." Any extension, enlargement, equipping,
8 furnishing, as well as any improvement.
9 "Local transportation organization." Any political
10 subdivision or any mass transportation, port, redevelopment or
11 airport authority now or hereafter organized under the Laws of
12 Pennsylvania or pursuant to an interstate compact or otherwise
13 empowered to render, contract for the rendering or assist in the
14 rendering of transportation service in a limited area in the
15 Commonwealth of Pennsylvania, even though it may also render or
16 assist in rendering transportation service in adjacent states,
17 or any nonprofit association of public transportation providers
18 within this Commonwealth.
19 "Materials and supplies." Those categories of expenses
20 contained in object class code 504 as specified in the National
21 Urban Mass Transportation Statistics, 1989 Section 15 Annual
22 Report, Report No. UMTA-IT-06-0352-90-1.
23 "Municipality." Includes any city, borough, incorporated
24 town or township.
25 "Nonurbanized area." Any area in this Commonwealth which
26 does not fall within an area classified as "urbanized" by the
27 United States Bureau of the Census of the United States
28 Department of Commerce in the 1990 Census of Population or any
29 area in this Commonwealth not classified as "urbanized" in any
30 future decennial census of the United States.
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1 "Nonvehicle maintenance expenses." The categories of costs
2 associated with the inspection, maintenance and repair of assets
3 other than vehicles, as specified in the National Urban Mass
4 Transportation Statistics, 1989 Section 15 Annual Report, Report
5 No. UMTA-IT-06-0352-90-1.
6 "Pennsylvania Mass Transit Statistical Report." The summary
7 of selected financial and operating data concerning local
8 transportation organizations and transportation companies for
9 services in urbanized areas published annually by the Department
10 of Transportation since the 1973-1974 fiscal year. The
11 department shall publish the Pennsylvania Mass Transit
12 Statistical Report on an annual basis, which report shall
13 contain statistics with respect to the prior fiscal year,
14 including those statistics needed for the department to make the
15 calculations required pursuant to sections 1303 (relating to
16 annual appropriation and computation of subsidy) and 1310
17 (relating to distribution of funding), and such other material
18 as the department shall determine.
19 "Pennsylvania Rural and Small Urban Public Transportation
20 Program Statistical Report." The summary of selected financial
21 and operating data concerning rural and small urban local
22 transportation organizations and transportation companies for
23 services in nonurbanized areas published by the Department of
24 Transportation. The department shall publish the Pennsylvania
25 Rural and Small Urban Public Transportation Program Statistical
26 Report on an annual basis, which report shall contain statistics
27 with respect to the prior fiscal year, including those
28 statistics needed for the department to make the calculations
29 required pursuant to sections 1303 (relating to annual
30 appropriation and computation of subsidy) and 1310 (relating to
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1 distribution of funding), and such other material as the
2 department shall determine.
3 "Person." The term includes natural persons, firms,
4 associations, corporations, business trusts, partnerships and
5 public bodies, including local transportation organizations.
6 "Planning, development, research, rural expansion and
7 department-initiated programs." Any program eligible to be
8 funded pursuant to section 1313 (relating to additional
9 programs).
10 "Project grant." The Commonwealth's share of the cost of
11 carrying out the particular project, which cost may include
12 costs incurred prior to the effective date of this part and
13 which cost shall include an appropriate allowance for the
14 administrative expenses involved in carrying out the project.
15 "Property." All property, real, personal or mixed, tangible
16 or intangible, or any interest therein, including fractional and
17 undivided co-ownership interests.
18 "Public highway." Every way or place, of whatever nature,
19 open to the use of the public as a matter of right for purposes
20 of vehicular travel. Solely for the purpose of administering
21 this part, the term shall not be deemed to include a bridge
22 located wholly within this Commonwealth which is open to the use
23 of the public for the purpose of vehicular traffic but which on
24 March 15, 1964, was owned and maintained by a mass
25 transportation or port authority and which comprises a part of
26 the transportation system of the mass transportation or port
27 authority.
28 "Revenue hours." The total amount of time, calculated in
29 hours, during which vehicles of a Class 4 transit entity are in
30 service and available for public use as reported with respect to
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1 the most recent fiscal year in the most recently issued
2 Pennsylvania Rural and Small Urban Public Transportation
3 Statistical Report.
4 "Revenue miles." The total number of in-service miles
5 traveled by vehicles of a Class 4 transit entity as reported
6 with respect to the most recent fiscal year in the most recently
7 issued Pennsylvania Rural and Small Urban Public Transportation
8 Statistical Report.
9 "Secretary." The Secretary of Transportation of the
10 Commonwealth.
11 "Shared-ride public transportation services." Demand-
12 responsive transportation that is available to the general
13 public, operates on a nonfixed route basis and charges a fare to
14 all riders. For transportation to be included in this definition
15 the first fare-paying passengers to enter the public
16 transportation vehicle must not refuse to share the vehicle with
17 other passengers during a given trip. Services excluded under
18 this definition are: exclusive ride taxi service; charter and
19 sightseeing services; nonpublic transportation; school bus or
20 limousine services.
21 "Transit vehicle." A self-propelled or electrically
22 propelled vehicle designed for carrying 15 or more passengers,
23 exclusive of the driver, other than a taxicab, designed and used
24 for the transportation of persons for compensation, including,
25 but not limited to, subway cars, trolleys, trackless trolleys
26 and railroad passenger cars.
27 "Transportation company." Any person, firm or corporation
28 rendering public passenger or public passenger and rail
29 transportation service, with or without the rendering of other
30 service, in this Commonwealth pursuant to common carrier
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1 authorization from the Pennsylvania Public Utility Commission or
2 the Interstate Commerce Commission.
3 "Urban common carrier mass transportation." Transportation
4 within an area that includes a municipality or other built-up
5 place which is appropriate, in the judgment of the Department of
6 Transportation, for a common carrier transportation system to
7 serve commuters or others in the locality, taking into
8 consideration the local patterns and trends of urban growth, by
9 bus or rail or other conveyance, either publicly or privately
10 owned, serving the general public. The term does not include
11 school buses or charter or sightseeing service.
12 "Urban Mass Transportation Act of 1964." Public Law 88-365,
13 49 U.S.C. § 1601 et seq.
14 "Urbanized area." A portion of this Commonwealth classified
15 as "urbanized" by the United States Bureau of the Census of the
16 United States Department of Commerce in the 1990 Census of
17 Population or any area in this Commonwealth classified as
18 "urbanized" in any future decennial census of the United States.
19 "Vehicle hours." The total amount of time, calculated in
20 hours, during which vehicles of a local transportation
21 organization or transportation company are in service and
22 available for public use, listed with respect to the most recent
23 fiscal year reported in the most recently issued Pennsylvania
24 Mass Transit Statistical Report.
25 "Vehicle maintenance expenses." The categories of costs
26 associated with the inspection, maintenance and repair of
27 vehicles as specified in the National Urban Mass Transportation
28 Statistics, 1989 Section 15 Annual Report, Report No. UMTA-IT-
29 06-0352-90-1.
30 "Vehicle miles." The total distance, calculated in miles,
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1 which is funded in whole or in part by this part, traveled by
2 vehicles of a local transportation organization or
3 transportation company listed with respect to the most recent
4 fiscal year reported in the most recently issued Pennsylvania
5 Mass Transit Statistical Report.
6 § 1302. Program authorizations.
7 The department is hereby authorized, within the limitations
8 hereinafter provided, and is required where the provisions of
9 section 1303 (relating to annual appropriation and computation
10 of subsidy) apply:
11 (1) To undertake and to provide financial support for
12 research, by contract or otherwise, concerning urban common
13 carrier mass transportation.
14 (2) To make grants to municipalities, counties, or their
15 instrumentalities, and to agencies and instrumentalities of
16 the Commonwealth to supplement Federal or local or Federal
17 and local funds for use:
18 (i) For the purpose of studies, analysis, planning
19 and development of programs for urban common carrier mass
20 transportation service and facilities, and for the
21 purpose of activities related to the planning,
22 engineering and designing of specific projects which are
23 a part of a comprehensive program, including, but not
24 limited to, activities such as studies related to
25 management, operations, capital requirements and economic
26 feasibility, to the preparation of engineering and
27 architectural surveys, plans and specifications and to
28 other similar or related activities preliminary to and in
29 preparation for the construction, acquisition or improved
30 operation of urban common carrier mass transportation
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1 systems, facilities and equipment. State funding under
2 this subparagraph shall not exceed five-sixths of the
3 non-Federal share of the project costs.
4 (ii) To provide for research, development and
5 demonstration projects in all phases of urban common
6 carrier mass transportation, including the development,
7 testing and demonstration of new facilities, equipment,
8 techniques and methods, to assist in the solution of
9 urban transportation problems, in the improvement of mass
10 transportation service and the contribution of such
11 service toward meeting total urban transportation needs
12 at minimum cost. State funding under this subparagraph
13 shall not exceed five-sixths of the non-Federal share of
14 the project costs.
15 (iii) To assist in providing grants to continue
16 necessary service to the public, to permit needed
17 improvements in service which are not self-supporting, to
18 permit service which may be socially desirable but
19 economically unjustified, and otherwise for any purpose
20 in furtherance of urban common carrier mass
21 transportation. The methodology for calculating the
22 amount of the grant under this subparagraph shall be
23 determined in accordance with section 1303. Each grant to
24 a Class 1 transit entity, to a Class 2 transit entity or
25 to a Class 3 transit entity made pursuant to this
26 paragraph shall be matched by local or private funding in
27 an amount not less than one-third of the total State
28 grant made pursuant to section 1303(b). Any grants to
29 Class 3 transit entities may, however, be matched by an
30 amount not less than the amount of local or private
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1 funding which is specified in the State contract for the
2 1990-1991 fiscal year if the department shall have
3 received a certification from such Class 3 transit entity
4 that such lower level of local or private funding is
5 adequate to prevent significant service reductions or
6 passenger fare increases.
7 (3) To make grants to any transportation company or
8 companies for use in providing necessary service to the
9 public, to permit needed improvements in services which are
10 not self-supporting, to permit services which may be socially
11 desirable but economically unjustified, and otherwise for any
12 purpose in furtherance of urban common carrier mass
13 transportation. In view of the particular sensitivity of
14 special instrumentalities and agencies of the Commonwealth
15 created to serve or coordinate the local transportation needs
16 of substantial metropolitan areas, no grant moneys may be
17 used exclusively or principally in the local service area of
18 any such agency or instrumentality in which a city or county
19 of the first or second class has membership, except in
20 accordance with a system of priorities agreed upon by the
21 department and such agency or instrumentality. In the case of
22 a grant where the moneys granted will be used for an activity
23 to be conducted exclusively or principally within the local
24 service areas of such agency or instrumentality, no grant
25 moneys may be used except in accordance with agreements by
26 the department and such agency or instrumentality with
27 respect to such use. In the case of a grant not falling
28 within the scope of the preceding sentence but where moneys
29 granted will be used both within and without the local
30 service area of such agency or instrumentality, the grant
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1 shall require that the routes, schedules and fares applicable
2 only within such service areas shall be those mutually agreed
3 upon by the department and such agency or instrumentality. No
4 agreement referred to in this paragraph shall impair,
5 suspend, reduce, enlarge or extend or affect in any manner
6 the powers of the Pennsylvania Public Utility Commission or
7 the Interstate Commerce Commission otherwise applicable by
8 law. Each grant to a Class 1 transit entity, to a Class 2
9 transit entity or to a Class 3 transit entity made pursuant
10 to this paragraph shall be matched by local or private
11 funding in an amount not less than one-third of the total
12 State grant made pursuant to section 1303(b). Any grants to
13 Class 3 transit entities may, however, be matched by an
14 amount not less than the amount of local or private funding
15 which is specified in the State contract for the 1990-1991
16 fiscal year if the department shall have received a
17 certification from such Class 3 transit entity that such
18 lower level of local or private funding is adequate to
19 prevent significant service reductions and/or passenger fare
20 increases.
21 (4) In connection with privately or locally assisted
22 capital projects or capital projects financed with private or
23 local and Federal funds, to make grants for approved capital
24 projects to a local transportation organization or a
25 transportation company, including the acquisition,
26 construction, reconstruction and improvement of facilities
27 and equipment, buses and other rolling stock, and other real
28 or personal property, including land (but not public
29 highways), needed for an efficient and coordinated mass
30 transportation system for use, by operation, lease or
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1 otherwise, in urban common carrier mass transportation
2 service and in coordinating such service with highway and
3 other transportation. No capital project grant shall be made
4 for the purpose of financing, directly or indirectly, the
5 acquisition of any interest in, or the purchase of any
6 facilities or other property of, a private urban common
7 carrier mass transportation company. Each capital project
8 shall be based on a program or plan approved by the
9 department. No capital project grant shall exceed five-sixths
10 of the non-Federal share, subject, however, to the following
11 specific exceptions:
12 (i) If two or more capital projects are combined for
13 financing purposes, the amount of department funds used
14 for any one of such projects may exceed five-sixths of
15 the non-Federal share, provided that the total amount of
16 department funds provided for all the projects so
17 combined does not exceed five-sixths of the total non-
18 Federal share of all of the projects so combined.
19 (ii) If a capital project is eligible to receive
20 Federal financial assistance under the Urban Mass
21 Transportation Act of 1964 and if the project application
22 for such Federal financial assistance has been rejected
23 or delayed because of a lack of Federal funds or if the
24 normal amount of Federal grant cannot be provided because
25 of a lack of Federal funds and if the department has
26 determined that the capital project is essential and
27 should proceed without delay, department funds for such
28 capital project may be increased temporarily to finance
29 the entire net project cost, with the requirement that,
30 upon the availability of additional Federal funds and the
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1 making to the capital project of a new or an additional
2 Federal grant, the amount of department funds in excess
3 of five-sixths of the non-Federal share be refunded to
4 the department or be applied as the department may direct
5 to help meet the department's share of the cost of
6 another project in which the department is a participant.
7 (iii) If a project is ineligible to receive Federal
8 financial assistance under the Urban Mass Transportation
9 Act of 1964 and if the department has determined that the
10 project is essential and should proceed without delay,
11 the amount of department funds for such project shall be
12 limited to an amount not to exceed one-half of the net
13 project cost.
14 (5) To make grants from the State Lottery Fund in
15 accordance with Chapter 7 of the act of August 14, 1991
16 (P.L.342, No.36), known as the Lottery Fund Preservation Act.
17 (6) To participate in a pooled bus acquisition program
18 with transportation companies or local transportation
19 organizations and the Federal Government for the purpose of
20 making buses available to transportation companies or local
21 transportation organizations for use in urban common carrier
22 mass transportation service, in accordance with the following
23 procedures:
24 (i) The department may apply to the Urban Mass
25 Transportation Administration of the United States
26 Department of Transportation for the Federal share of any
27 pooled-bus acquisition project.
28 (ii) The department may, with the assistance of the
29 Department of General Services or a special group
30 comprised of representatives of the transportation
20070H1878B2575 - 19 -
1 companies or local transportation organizations within
2 the Commonwealth, write specifications for and order
3 buses on behalf of any number of transportation companies
4 or local transportation organizations desiring bus
5 acquisition under this program.
6 (iii) Before any order for buses is placed by the
7 department with a manufacturer, the department shall
8 secure written assurance from the Federal Government of
9 the availability of Federal financial assistance for such
10 bus acquisitions. The department shall also secure
11 written obligations by the transportation companies or
12 local transportation organizations participating in such
13 bus acquisitions that they will accept delivery of such
14 buses at the appropriate time and will supply local
15 funding in accordance with subparagraph (iv).
16 (iv) Funding for this program shall be: four-fifths
17 Federal, one-sixth State and one-thirtieth from local
18 sources; however, the local share of program costs may be
19 advanced to the manufacturer by the Commonwealth at the
20 time of purchase. Repayments to the Commonwealth of such
21 advancements shall be considered as augmentations to the
22 fund from which the funds were advanced. No part of the
23 Federal share shall be advanced by the Commonwealth in
24 anticipation of reimbursement.
25 (v) The Commonwealth may take title to and delivery
26 of vehicles acquired pursuant to this program for
27 eventual transfer to transportation companies or local
28 transportation organizations.
29 (vi) All bus acquisitions under this program shall
30 be made in accordance with a system of competitive
20070H1878B2575 - 20 -
1 bidding.
2 (vii) At its discretion, the department may organize
3 and fund, with Commonwealth funds, postacquisition
4 studies reasonably related to any pooled-bus acquisition
5 made pursuant to this section, including, but not limited
6 to, a vehicle inspection study at an appropriate interval
7 or intervals following acquisition in order to monitor
8 the condition of any vehicle purchased pursuant to this
9 section.
10 § 1303. Annual appropriation and computation of subsidy.
11 (a) General rule.--Beginning with the 1991-1992 fiscal year,
12 the Commonwealth shall annually determine the level of
13 appropriation for public transportation assistance, using the
14 standards contained in this section, to sufficiently fund and to
15 make fully operative section 1302(2)(iii) and (3) (relating to
16 program authorizations).
17 (b) Distribution as grants.--The General Assembly shall
18 annually make an appropriation to the department for
19 distribution as grants to local transportation organizations and
20 transportation companies. The total amount of moneys
21 appropriated shall be distributed by the department as grants to
22 local transportation organizations and transportation companies
23 in accordance with the provisions of this section.
24 (c) Distribution formula.--The department shall distribute
25 the total amount appropriated under subsection (b) in the
26 following manner:
27 (1) The department shall calculate the Class 4 transit
28 entity share for the fiscal year.
29 (2) The department shall then calculate the amount of
30 grant due to each Class 4 transit entity as follows:
20070H1878B2575 - 21 -
1 (i) From the Class 4 transit entity share, each
2 Class 4 transit entity shall first receive an amount
3 equal to 100% of its Class 4 transit entity adjusted base
4 grant.
5 (ii) With respect to any portion of the Class 4
6 transit entity share remaining after each Class 4 transit
7 entity receives an amount equal to 100% of its Class 4
8 transit entity adjusted base grant:
9 (A) Fifty percent of such excess shall be
10 distributed to Class 4 transit entities based upon
11 the percentage of the total amount of all Class 4
12 transit entity adjusted base grants given to Class 4
13 transit entities which a particular Class 4 transit
14 entity received.
15 (B) Twenty-five percent of such excess shall be
16 distributed to Class 4 transit entities based upon
17 each transit entity's Class 4 revenue mile
18 percentage. The actual amount received by each Class
19 4 transit entity under this clause shall be
20 determined by multiplying a particular Class 4
21 transit entity's Class 4 revenue mile percentage
22 times 25% of such excess of the Class 4 transit
23 entity share.
24 (C) Twenty-five percent of such excess shall be
25 distributed to Class 4 transit entities based upon
26 each transit entity's Class 4 revenue hour
27 percentage. The actual amount received by each Class
28 4 transit entity under this clause shall be
29 determined by multiplying a particular Class 4
30 transit entity's Class 4 revenue hour percentage
20070H1878B2575 - 22 -
1 times 25% of such excess of the Class 4 transit
2 entity share.
3 (3) All Class 4 transit entities may utilize all of the
4 funds received pursuant to this section for any purpose in
5 furtherance of public transportation. Each grant made to a
6 Class 4 transit entity pursuant to this section shall,
7 however, be matched by local or private funding in an amount
8 not less than one-third of the total State grant made
9 pursuant to subsection (c). Additionally, any grants to Class
10 4 transit entities may be matched by an amount not less than
11 the amount of local or private funding which is specified in
12 the State contract for the 1990-1991 fiscal year if the
13 department shall have received a certification from such
14 Class 4 transit entity that such lower level of local or
15 private funding is adequate to prevent significant service
16 reductions or passenger fare increases.
17 (4) The department shall calculate the Class 1 transit
18 entity share, the Class 2 transit entity share and the Class
19 3 transit entity share for the fiscal year.
20 (5) The department shall then calculate the amount of
21 grant due to each local transportation organization and
22 transportation company as follows:
23 (i) Each Class 1 transit entity shall receive a
24 prorata share of the Class 1 transit entity share. If
25 there is only one Class 1 transit entity, it shall
26 receive the entire Class 1 transit entity share.
27 (ii) Each Class 2 transit entity shall receive a
28 prorata share of the Class 2 transit entity share. If
29 there is only one Class 2 transit entity, it shall
30 receive the entire Class 2 transit entity share.
20070H1878B2575 - 23 -
1 (iii) Each Class 3 transit entity shall receive a
2 portion of the Class 3 transit entity share calculated as
3 follows:
4 (A) From the Class 3 transit entity share, each
5 Class 3 transit entity shall first receive an amount
6 equal to 100% of its Class 3 transit entity adjusted
7 base grant.
8 (B) With respect to any portion of the Class 3
9 transit entity share remaining after each Class 3
10 transit entity receives an amount equal to 100% of
11 its Class 3 transit entity adjusted base grant:
12 (I) Fifty percent of such excess shall be
13 distributed to Class 3 transit entities based
14 upon the percentage of all Class 3 transit entity
15 adjusted base grants given to Class 3 transit
16 entities which a particular Class 3 transit
17 entity received.
18 (II) Twenty-five percent of such excess
19 shall be distributed to Class 3 transit entities
20 based upon each transit entity's Class 3 vehicle
21 mile percentage. The actual amount received by
22 each Class 3 transit entity under this subclause
23 shall be determined by multiplying a particular
24 Class 3 transit entity's Class 3 vehicle mile
25 percentage times 25% of such excess of the Class
26 3 transit entity share.
27 (III) Twenty-five percent of such excess
28 shall be distributed to Class 3 transit entities
29 based upon each Class 3 transit entity's Class 3
30 operating revenue percentage. The actual amount
20070H1878B2575 - 24 -
1 received by each Class 3 transit entity under
2 this subclause shall be determined by multiplying
3 a particular Class 3 transit entity's Class 3
4 operating revenue percentage times 25% of such
5 excess of the Class 3 transit entity share.
6 (6) On or about each July 1, October 1, January 1 and
7 April 1 of each year commencing July 1, 1987, the department
8 shall disburse 25% of the total annual amount due to each
9 local transportation organization or transportation company
10 calculated in accordance with this section.
11 (d) New organizations.--Should a new local transportation
12 organization or transportation company be established and meet
13 the criteria of a Class 1 transit entity, Class 2 transit
14 entity, Class 3 transit entity or Class 4 transit entity as such
15 criteria are set forth in section 1301 (relating to
16 definitions), the department shall make an appropriate
17 determination as to the level of grant to which such local
18 transportation organization or transportation company shall be
19 entitled. This determination shall include, but shall not be
20 limited to, a determination as to an appropriate adjusted base
21 grant for that local transportation organization or
22 transportation company and a determination of appropriate
23 adjustments to class percentages or transit entity shares.
24 (e) Change to different entity class.--If, during any fiscal
25 year, either the number of vehicles operated by a local
26 transportation organization or transportation company or the
27 area served by such a local transportation organization or
28 transportation company changes so that the local transportation
29 organization or transportation company meets the criteria for a
30 different transit entity class, as such criteria are set forth
20070H1878B2575 - 25 -
1 in section 1301, on or before July 15 of the fiscal year which
2 follows such a change and in each fiscal year thereafter, the
3 department shall reflect any change in the transit entity class
4 of such a local transportation organization or transportation
5 company in its calculation of the transit entity shares for each
6 transit entity class for that and subsequent fiscal years. In
7 its calculation of the transit entity shares for each transit
8 entity class required by this section, for the fiscal year
9 following the change in a local transportation organization or
10 transportation company's transit entity class and thereafter,
11 the department shall include the amount of the transit entity
12 share allocated to such a local transportation organization or
13 transportation company for the fiscal year prior to the change
14 in the transit entity class, in the transit entity share for the
15 new transit entity class of such a local transportation
16 organization or transportation company, and shall delete an
17 equal amount from the transit entity share for the transit
18 entity class for which such a local transportation organization
19 or transportation company no longer meets the criteria in the
20 new fiscal year or thereafter.
21 (f) Rates, fares and charges.--
22 (1) Each local transportation organization or
23 transportation company receiving moneys pursuant to this
24 section shall annually fix such rates, fares and charges in
25 such manner that they shall be at all times sufficient in the
26 aggregate, and in conjunction with any moneys received from
27 Federal or other sources, and any other income available to
28 such organization or company, to provide funds for the
29 payment of all operating costs and expenses which shall be
30 incurred by such organization or company.
20070H1878B2575 - 26 -
1 (2) In order to be eligible for the moneys described in
2 paragraph (1), each local transportation organization or
3 transportation company shall adopt an annual operating budget
4 for each fiscal year no later than the last day of the
5 preceding fiscal year. A copy of this operating budget shall
6 be submitted to the department within ten days after its
7 approval, along with a certification by the local
8 transportation organization or transportation company that
9 adequate revenues (including subsidies) are provided to
10 support operating costs and expenses.
11 (g) Standards and measures.--
12 (1) Within one year after the effective date of this
13 part and every year thereafter, each local transportation
14 organization or transportation company receiving moneys
15 pursuant to this section shall adopt a series of service
16 standards and performance evaluation measures. Such standards
17 and measures shall be in addition to the performance audits
18 required by section 1315 (relating to public transportation
19 grants management accountability) and shall consist of
20 objectives and specific numeric performance levels to be
21 achieved in meeting these standards and objectives. Those
22 standards and measures adopted shall include the following,
23 in addition to others deemed appropriate by the local
24 transportation organization or transportation company:
25 (i) An automatic mechanism to review the utilization
26 of routes.
27 (ii) Staffing ratios (ratio of administrative
28 employees to operating employees; number of vehicles per
29 mechanic).
30 (iii) Productivity measures (vehicle miles per
20070H1878B2575 - 27 -
1 employee; passenger and employee accidents per 100,000
2 vehicle miles; on-time performance; miles between road
3 calls).
4 (iv) Fiscal indicators (operating cost per
5 passenger; subsidy per passenger and operating ratio).
6 (iv.1) Reasonable minimum prequalification standards
7 for prospective transit service subcontractors.
8 (v) Any other matter desired by the governing body
9 of such local transportation organization or
10 transportation company.
11 (2) The service standards and performance evaluation
12 measures shall be established by formal action of the
13 governing body of such local transportation organization or
14 transportation company following an opportunity for comment
15 by the public and the department. Upon submission, the
16 department will review and may make recommendations to the
17 local transportation organization or transportation company
18 concerning the service standards and performance evaluation
19 measures.
20 (3) In the discretion of such governing body, the
21 service standards and performance evaluation measures may be
22 systemwide or based on a sampling.
23 (4) The service standards and performance evaluation
24 measures shall only constitute goals for such local
25 transportation organization or transportation company in
26 providing service in the year following their adoption. At
27 the end of such year, fiscal or calendar, as the case may be,
28 a report shall be transmitted to the department for its
29 consideration indicating the projected performance levels and
30 the performance levels actually achieved. Upon submission,
20070H1878B2575 - 28 -
1 the department will review the report and may make
2 recommendations to such local transportation organization or
3 transportation company concerning the performance levels
4 actually achieved. Such report shall be released to the
5 public at the time of issuance.
6 (5) The department may suspend the eligibility for
7 future discretionary transit grant funds of any transit
8 entity which fails to comply with the provisions of this
9 section. The department shall restore the discretionary
10 funding eligibility of a suspended transit entity at such
11 time as the requirements of this section are met in an
12 amended application received by the department.
13 (h) Reduction of certain grants.--With respect to grants to
14 Class 1 transit entities and Class 2 transit entities in any
15 fiscal year, the department shall reduce the grant amount due to
16 such local transportation organization or transportation company
17 by an amount equal to 1% of such grant moneys otherwise due to
18 such local transportation organization or transportation company
19 for each percentage point such local transportation
20 organization's or transportation company's operating ratio is
21 less than 50% in the case of a Class 1 transit entity or less
22 than 46% in the case of a Class 2 transit entity.
23 (i) Audits.--The department is authorized to perform
24 independent financial audits of the financial statements of each
25 local transportation organization or transportation company
26 receiving moneys pursuant to this section. Such audits shall be
27 conducted in accordance with generally accepted auditing
28 standards. Any financial statements subject to such audit or
29 reports resulting from such audit shall be prepared and
30 presented in accordance with generally accepted accounting
20070H1878B2575 - 29 -
1 principles, consistently applied with previous statements
2 rendered for or on behalf of such organization or company. The
3 department may coordinate such audits in conjunction with audits
4 undertaken by the Auditor General.
5 (j) Definitions.--As used in this section, the following
6 words and phrases shall have the meanings given to them in this
7 subsection:
8 "Class 1 percentage." Seventy percent.
9 "Class 2 percentage." Twenty-five and three-tenths percent.
10 "Class 3 percentage." Four and seven-tenths percent.
11 "Class 1 to 3 allocation." The total amount appropriated
12 under subsection (b) less the Class 4 transit entity share.
13 "Class 1 transit entity share." The product of the Class 1
14 percentage times the Class 1 to 3 allocation in a particular
15 fiscal year.
16 "Class 2 transit entity share." The product of the Class 2
17 percentage times the Class 1 to 3 allocation in a particular
18 fiscal year.
19 "Class 3 transit entity adjusted base grant." The State
20 subsidy which a Class 3 transit entity received during the 1990-
21 1991 fiscal year, including Federal funds transferred from other
22 local transportation organizations and transportation companies
23 from the Federal fiscal year 1989-1990 pursuant to the
24 Governor's apportionment allocation contained in the Urban Mass
25 Transportation Act of 1964.
26 "Class 3 transit entity share." The product of the Class 3
27 percentage times the Class 1 to 3 allocation in a particular
28 fiscal year.
29 "Class 3 vehicle mile percentage." The percentage determined
30 by dividing the vehicle miles of a Class 3 transit entity with
20070H1878B2575 - 30 -
1 respect to the most recent fiscal year as reported in the most
2 recently issued Pennsylvania Mass Transit Statistical Report by
3 the total number of vehicle miles of all Class 3 transit
4 entities with respect to the most recent fiscal year as reported
5 in the most recently issued Pennsylvania Mass Transit
6 Statistical Report.
7 "Class 4 revenue hour percentage." The percentage determined
8 by dividing the revenue hours of a Class 4 transit entity as
9 reported with respect to the most recent fiscal year in the most
10 recently issued Pennsylvania Rural and Small Urban Public
11 Transportation Statistical Report by the total number of revenue
12 hours of all Class 4 transit entities as reported with respect
13 to the most recent fiscal year reported in the most recently
14 issued Pennsylvania Rural and Small Urban Public Transportation
15 Statistical Report.
16 "Class 4 revenue mile percentage." The percentage determined
17 by dividing the revenue miles of a Class 4 transit entity as
18 reported with respect to the most recent fiscal year in the most
19 recently issued Pennsylvania Rural and Small Urban Public
20 Transportation Statistical Report by the total revenue miles of
21 all Class 4 transit entities as reported with respect to the
22 most recent fiscal year reported in the most recently issued
23 Pennsylvania Rural and Small Urban Public Transportation
24 Statistical Report.
25 "Class 4 transit entity share." Two million three hundred
26 thirty-five thousand dollars for the 1991-1992 fiscal year and,
27 during the 1992-1993 fiscal year and each fiscal year
28 thereafter, shall mean the Class 4 transit entity share for the
29 prior fiscal year plus (or minus) the product of the Class 4
30 transit entity share for the prior fiscal year times the
20070H1878B2575 - 31 -
1 percentage increase or decrease in the total operating
2 assistance made available to local transportation organizations
3 and transportation companies for that fiscal year as compared
4 with the most recently completed fiscal year.
5 "Operating ratio." The proportion of total operating revenue
6 (which shall include all passenger, charter and advertising
7 revenue, fare reimbursement received from the State Lottery Fund
8 and all other receipts associated with the delivery of transit
9 services, but shall exclude Federal grants provided to cover
10 operating losses and State grants made pursuant to subsection
11 (b)) divided by total operating expenses associated with day-to-
12 day operation of the system (but excluding depreciation of
13 capital assets).
14 "Operating revenue." The total revenue earned by a local
15 transportation organization or transportation company through
16 its transit operations, including, but not limited to, passenger
17 revenue, senior citizen grant, charter revenue, school contract
18 revenue, advertising and other revenue listed with respect to
19 the most recent fiscal year reported in the most recently issued
20 Pennsylvania Mass Transit Statistical Report.
21 "Operating revenue percentage." The percentage determined by
22 dividing the operating revenues of a local transportation
23 organization or transportation company as reported in the most
24 recently issued Pennsylvania Mass Transit Statistical Report by
25 the total operating revenue of all local transportation
26 organizations or transportation companies as reported in the
27 most recently issued Pennsylvania Mass Transit Statistical
28 Report.
29 § 1304. Grant proposals.
30 (a) General rule.--Grants may be made hereunder with
20070H1878B2575 - 32 -
1 reference to any appropriate project irrespective of when it was
2 first commenced or considered and regardless of whether costs
3 with respect thereto shall have been incurred prior to the time
4 the grant is applied for or made.
5 (b) Applications.--The governing bodies of municipalities,
6 counties or their instrumentalities, and agencies and
7 instrumentalities of the Commonwealth may, by formal resolution,
8 apply and transportation companies by application may apply to
9 the department for State grant funds provided by this chapter.
10 If the action is taken by a governing body, a certified copy of
11 the resolution and, in the case of transportation companies, an
12 application shall be forwarded to the department with a proposal
13 of the governing body or company, which shall set forth the use
14 to be made of State grant funds and the amount of funds required
15 or, in the case of grants under section 1303 (relating to annual
16 appropriation and computation of subsidy), which shall set forth
17 a request that the grant provided for under section 1303 be
18 made.
19 (c) Preference for coordinated systems.--The department
20 shall give preference to any proposal which will assist in
21 carrying out a plan, meeting criteria established by the
22 department, for a unified or officially coordinated urban
23 transportation system as a part of the comprehensively planned
24 development of the urban area, which is necessary for the sound,
25 economic and desirable development of such area and which shall
26 encourage to the maximum extent feasible the participation of
27 private enterprise. This subsection shall not apply to grants
28 made pursuant to section 1303.
29 (d) Use of grants.--The use of the State grant funds shall
30 be for the purposes set forth in section 1302 (relating to
20070H1878B2575 - 33 -
1 program authorizations) and, without limiting the generality of
2 the foregoing, may be used for local contributions required by
3 the Urban Mass Transportation Act of 1964 or other Federal law
4 concerning common carrier mass transportation.
5 (e) Grant agreement.--
6 (1) The department shall review the proposal and, if
7 satisfied that the proposal is in accordance with the
8 purposes of this chapter, shall enter into a grant agreement
9 subject to the condition that the grant be used in accordance
10 with the terms of the proposal. With respect to grants made
11 pursuant to section 1303, the department shall make such
12 grants subject to the condition that the grants be used for
13 the purposes set forth in section 1302 and, where applicable,
14 only after the certification required in section 1302(2)(iii)
15 and (3) shall have been made.
16 (2) The time of payment of the grant and any conditions
17 concerning such payment shall be set forth in the grant
18 agreement.
19 § 1305. Rules and regulations.
20 In order to effectuate and enforce the provisions of this
21 chapter, the department is authorized to promulgate necessary
22 rules and regulations and prescribe conditions and procedures in
23 order to assure compliance in carrying out the purposes for
24 which grants may be made hereunder.
25 § 1306. Cooperation with other governments and private
26 interests.
27 (a) General rule.--The department is directed to administer
28 this program with such flexibility as to permit full cooperation
29 between Federal, State and local governments, agencies and
30 instrumentalities, as well as private interests, so as to result
20070H1878B2575 - 34 -
1 in as effective and economical a program as possible.
2 (b) Agreements.--The department is hereby authorized to
3 enter into agreements providing for mutual cooperation between
4 or among it and any Federal agency, local transportation
5 organization or transportation company concerning any or all
6 projects, including joint applications for Federal grants.
7 § 1307. General authority of department.
8 It is the purpose and intent of this chapter to authorize the
9 department to do any and all other things necessary or desirable
10 to secure the financial aid or cooperation of any Federal agency
11 in any of the department's projects and to do and perform all
12 things which may be required by any statute of the United States
13 of America or by the lawful requirements of any Federal agency
14 authorized to administer any program of Federal aid to
15 transportation. The department is expressly permitted to enter
16 into protective agreements with labor to the extent required
17 under 49 U.S.C. § 5333 (relating to labor standards) in order to
18 obtain Federal grant moneys for transportation assistance. Such
19 protective agreements shall be narrowly drawn and strictly
20 construed to provide no more than the minimum protections
21 required by the United States Department of Labor for such
22 agreements.
23 § 1308. Grants by counties or municipalities.
24 Any county or municipality in any metropolitan area which is
25 a member of a local transportation organization is authorized to
26 make annual grants from current revenues to local transportation
27 organizations to assist in defraying the costs of operations,
28 maintenance and debt service of local transportation
29 organization or of a particular mass transportation project of a
30 local transportation organization and to enter into long-term
20070H1878B2575 - 35 -
1 agreements providing for the payment of the same. The obligation
2 of a municipality or county under any such agreement shall not
3 be considered to be a part of its indebtedness, nor shall such
4 obligation be deemed to impair the status of any indebtedness of
5 such municipality or county which would otherwise be considered
6 as self-sustaining.
7 § 1309. Limitation on decisions, findings and regulations of
8 department.
9 All decisions, findings and regulations made by the
10 department pursuant to this chapter shall be for the purposes of
11 this chapter only and shall not constitute evidence before any
12 regulatory body of this Commonwealth or any other jurisdiction.
13 § 1310. Distribution of funding.
14 (a) General rule.--All moneys made available and required to
15 be used for capital projects, asset maintenance and other
16 programs specified in this section shall be distributed in
17 accordance with the formula specified in this section and used
18 strictly in accordance with section 1311 (relating to use of
19 funds distributed).
20 (b) Distribution procedure.--During each fiscal year,
21 capital project, asset maintenance and other program funds shall
22 be distributed as follows:
23 (1) On or before the fifth day of each month, the
24 Treasury Department shall certify to the department the total
25 amount then available for distribution, and the department
26 shall make distribution of payments required under this
27 subsection on or before the 20th day of each month.
28 (2) Beginning in the 1991-1992 fiscal year, each month,
29 the Treasury Department shall pay one-twelfth of the
30 Department of Transportation project management oversight
20070H1878B2575 - 36 -
1 share for that fiscal year into the General Fund. The moneys
2 so transferred are hereby appropriated to the Department of
3 Transportation for use by that department for expenses
4 related to project management and oversight of capital and
5 asset maintenance projects funded pursuant to this section.
6 (3) Each month, the Treasury Department shall pay one-
7 twelfth of the community transportation program section 1310
8 share for that fiscal year into the General Fund. The funds
9 so transferred are hereby appropriated to the Department of
10 Transportation to make grants to counties, pursuant to
11 section 1312 (relating to community transportation programs),
12 for the purpose of funding capital projects of community
13 transportation programs.
14 (4) Each month, the Treasury Department shall pay the
15 planning, development, research, rural expansion and
16 department-initiated programs section 1310 share for that
17 month into the General Fund. The funds so transferred are
18 hereby appropriated to the Department of Transportation to
19 incur costs directly or to make grants to local
20 transportation organizations or transportation companies, or
21 entities which seek to become local transportation
22 organizations or transportation companies, pursuant to
23 section 1312, for the purpose of funding planning,
24 development, research, rural expansion and department-
25 initiated programs.
26 (5) Each month, the department shall distribute one-
27 twelfth of the Class 4 transit entity section 1310 share to
28 Class 4 transit entities in the manner provided in this
29 paragraph. Each Class 4 transit entity shall receive a
30 portion of each monthly distribution of the Class 4 transit
20070H1878B2575 - 37 -
1 entity section 1310 share as follows:
2 (i) Fifty percent of the monthly distribution of the
3 Class 4 transit entity section 1310 share shall be
4 distributed to Class 4 transit entities based upon each
5 transit entity's Class 4 operating assistance grant
6 section 1310 percentage. The actual amount received by
7 each Class 4 transit entity under this subparagraph shall
8 be determined by multiplying a particular Class 4 transit
9 entity's Class 4 operating assistance grant section 1310
10 percentage times the total amount available for
11 distribution under this subparagraph.
12 (ii) Twenty-five percent of the monthly distribution
13 of the Class 4 transit entity section 1310 share shall be
14 distributed to Class 4 transit entities based upon each
15 transit entity's Class 4 revenue mile section 1310
16 percentage. The actual amount received by each Class 4
17 transit entity under this subparagraph shall be
18 determined by multiplying a particular Class 4 transit
19 entity's Class 4 revenue mile section 1310 percentage
20 times the total amount available for distribution under
21 this subparagraph.
22 (iii) Twenty-five percent of the monthly
23 distribution of the Class 4 transit entity section 1310
24 share shall be distributed to Class 4 transit entities
25 based upon each transit entity's Class 4 revenue hour
26 section 1310 percentage. The actual amount received by
27 each Class 4 transit entity under this subparagraph shall
28 be determined by multiplying a particular Class 4 transit
29 entity's Class 4 transit entity revenue hour section 1310
30 percentage times the total amount available for
20070H1878B2575 - 38 -
1 distribution under this subparagraph.
2 (6) Each month, after providing for payment of the
3 portion of the Department of Transportation project
4 management oversight share, the community transportation
5 program section 1310 share, the planning, development,
6 research, rural expansion and department-initiated programs
7 section 1310 shares and the Class 4 transit entity section
8 1310 share to be distributed that month, the department shall
9 distribute all remaining capital project, asset maintenance
10 and other program funds as follows:
11 (i) Each Class 1 transit entity shall receive a
12 prorata share of the Class 1 transit entity section 1310
13 share. If there is only one Class 1 transit entity, it
14 shall receive the entire Class 1 transit entity section
15 1310 share.
16 (ii) Each Class 2 transit entity shall receive a
17 prorata share of the Class 2 transit entity section 1310
18 share. If there is only one Class 2 transit entity, it
19 shall receive the entire Class 2 transit entity section
20 1310 share.
21 (iii) Each Class 3 transit entity shall receive a
22 portion of the Class 3 transit entity section 1310 share
23 as follows:
24 (A) Sixteen and sixty-seven hundredths percent
25 of the Class 3 transit entity section 1310 share
26 shall be distributed to Class 3 transit entities
27 based upon each transit entity's Class 3 vehicle mile
28 section 1310 percentage. The actual amount received
29 by each Class 3 transit entity under this clause
30 shall be determined by multiplying a particular Class
20070H1878B2575 - 39 -
1 3 transit entity's Class 3 vehicle mile section 1310
2 percentage times the total amount available for
3 distribution under this clause.
4 (B) Sixteen and sixty-seven hundredths percent
5 of the Class 3 transit entity section 1310 share
6 shall be distributed to Class 3 transit entities
7 based upon each transit entity's Class 3 vehicle hour
8 section 1310 percentage. The actual amount received
9 by each Class 3 transit entity under this clause
10 shall be determined by multiplying a particular Class
11 3 transit entity's Class 3 vehicle hour section 1310
12 percentage times the total amount available for
13 distribution under this clause.
14 (C) Sixteen and sixty-six hundredths percent of
15 the Class 3 transit entity section 1310 share shall
16 be distributed to Class 3 transit entities based upon
17 each transit entity's Class 3 total passenger section
18 1310 percentage. The actual amount received by each
19 Class 3 transit entity under this clause shall be
20 determined by multiplying a particular Class 3
21 transit entity's Class 3 total passenger section 1310
22 percentage times the total amount available for
23 distribution under this clause.
24 (D) Twenty-five percent of the Class 3 transit
25 entity section 1310 share shall be distributed to
26 Class 3 transit entities based upon each transit
27 entity's Class 3 Federal operating cap percentage.
28 The actual amount received by each Class 3 transit
29 entity under this clause shall be determined by
30 multiplying a particular Class 3 transit entity's
20070H1878B2575 - 40 -
1 Class 3 Federal operating cap percentage times the
2 total amount available for distribution under this
3 clause.
4 (E) Twenty-five percent of the Class 3 transit
5 entity section 1310 share shall be distributed to
6 Class 3 transit entities based upon each transit
7 entity's Class 3 State operating grant percentage.
8 The actual amount received by each Class 3 transit
9 entity under this clause shall be determined by
10 multiplying a particular Class 3 transit entity's
11 Class 3 State operating grant percentage times the
12 total amount available for distribution under this
13 clause.
14 (c) Change of classification.--If, during any fiscal year,
15 either the number of vehicles operated by a local transportation
16 organization or transportation company or the area served by
17 such a local transportation organization or transportation
18 company changes so that the local transportation organization or
19 transportation company meets the criteria for a different
20 transit entity class, as such criteria are set forth in section
21 1301 (relating to definitions), on or before July 15 of the
22 fiscal year which follows such a change and in each fiscal year
23 thereafter, the department shall reflect any change in the
24 transit entity class of such a local transportation organization
25 or transportation company in the Department of Transportation
26 certification for that and subsequent fiscal years. In its
27 calculation of the transit entity section 1310 shares for each
28 transit entity class required by subsection (g)(1) and the
29 transit entity section 1310.1 shares for each transit entity
30 class required by subsection (g)(1) for the fiscal year
20070H1878B2575 - 41 -
1 following the change in a local transportation organization or
2 transportation company's transit entity class and thereafter,
3 the department shall include the amount of the transit entity
4 sections 1310 and 1310.1 shares allocated to such a local
5 transportation organization or transportation company for the
6 fiscal year prior to the change in the transit entity class, in
7 the transit entity sections 1310 and 1310.1 shares for the new
8 transit entity class of such a local transportation organization
9 or transportation company, and shall delete an equal amount from
10 the transit entity sections 1310 and 1310.1 shares for the
11 transit entity class for which such a local transportation
12 organization or transportation company no longer meets the
13 criteria in the new fiscal year. No local transportation
14 organization or transportation company which has changed from
15 one transit entity class to another due to either an increase in
16 the number of vehicles operated or the United States Census
17 Bureau's declaring its service area an urbanized area shall
18 receive less than the amount transferred on its account by the
19 department pursuant to this section.
20 (d) Oversight.--The department shall initiate and maintain a
21 program of review and oversight for any projects receiving funds
22 distributed pursuant to this section and section 1310.1
23 (relating to supplemental public transportation assistance
24 funding). The department is authorized to perform independent
25 financial audits of the financial statements of each local
26 transportation organization, transportation company or community
27 transportation program receiving moneys pursuant to this
28 section. These audits shall be conducted in accordance with
29 generally accepted auditing standards. Any financial statements
30 subject to the audit or reports resulting from the audit shall
20070H1878B2575 - 42 -
1 be prepared and presented in accordance with generally accepted
2 accounting principles, consistently applied with previous
3 statements rendered for or on behalf of such organization or
4 company. The department may coordinate such audits in
5 conjunction with audits undertaken by the Auditor General.
6 (e) Fiscal year and capital budget.--
7 (1) The governing body of each local transportation
8 organization or transportation company shall establish a
9 fiscal year for capital programs. No later than the last day
10 of each fiscal year for capital programs, each local
11 transportation organization or transportation company
12 receiving moneys pursuant to this section shall adopt a
13 capital budget and an asset maintenance spending plan for
14 submission to the department.
15 (2) The capital budget shall include the following:
16 (i) A description of any such project.
17 (ii) The projected cost of any project to be
18 undertaken, including supporting cash flow.
19 (iii) The duration of any such project, including
20 the projected starting date, completion date and
21 projected useful life of the project.
22 (iv) The proposed funding sources for any project.
23 (v) A description of projects completed in the prior
24 fiscal year and their impact on operations.
25 (vi) A description of progress to date on projects
26 initiated in the prior fiscal year but not yet completed.
27 (vii) An explanation of any significant project
28 delays.
29 (viii) The use of funds under this section in the
30 prior fiscal year, including projects for which they were
20070H1878B2575 - 43 -
1 used.
2 (ix) A multiyear plan for future use of funds
3 received under this section for a period of not less than
4 five years.
5 (x) Any other matter desired by the governing body
6 of such local transportation organization or
7 transportation company.
8 (3) The asset maintenance spending plan shall include:
9 (i) The amount of moneys expended for asset
10 maintenance costs.
11 (ii) The purposes for which such funds were
12 expended.
13 (iii) Those asset maintenance costs which are
14 projected to be funded during the subsequent twelve
15 months by the local transportation organization or
16 transportation company.
17 (iv) A multiyear plan for future use of funds
18 received under this section for a period of not less than
19 five years.
20 (4) The capital budget and the asset maintenance
21 spending plan shall be established by formal action of the
22 governing body of such local transportation organization or
23 transportation company following an opportunity for comment
24 by the public and the department. Upon submission, the
25 department will review and may make recommendations to the
26 local transportation organization or transportation company
27 concerning the capital budget and asset maintenance spending
28 plan.
29 (5) The capital budget and the asset maintenance
30 spending plan may be amended by formal action of the
20070H1878B2575 - 44 -
1 governing body of such local transportation organization or
2 transportation company from time to time. Any amendments to
3 the capital budget and the asset maintenance spending plan
4 shall be transmitted to the department for its review, and
5 the department may make recommendations to the local
6 transportation organization or transportation company
7 concerning any amendments to the capital budget and the asset
8 maintenance spending plan.
9 (f) Definitions.--As used in this section, the following
10 words and phrases shall have the meanings given to them in this
11 subsection:
12 "Capital project, asset maintenance and other program funds."
13 Moneys made available to finance capital projects and asset
14 maintenance costs of local transportation organizations,
15 transportation companies or community transportation programs or
16 to fund other programs specified in this section from:
17 (1) any fund of the Commonwealth where the legislation
18 creating such fund references this part and states that some
19 or all of the moneys in such fund are to be used to finance
20 capital projects and asset maintenance costs of local
21 transportation organizations, transportation companies or
22 community transportation programs and to fund certain other
23 programs; or
24 (2) any other source, where such moneys are made
25 available specifically to finance capital projects and asset
26 maintenance costs of local transportation organizations,
27 transportation companies or community transportation programs
28 in accordance with this section.
29 "Class 1 section 1310 percentage." Seventy and three-tenths
30 percent.
20070H1878B2575 - 45 -
1 "Class 2 section 1310 percentage." Twenty-five and four-
2 tenths percent.
3 "Class 3 section 1310 percentage." Four and three-tenths
4 percent.
5 "Class 1 to 3 section 1310 allocation." The total amount of
6 capital project, asset maintenance and other program funds
7 available for distribution by the Treasury Department during a
8 particular month, less:
9 (1) the amount of the Department of Transportation
10 project management oversight share to be paid each month
11 under subsection (b)(2);
12 (2) the amount of the community transportation program
13 section 1310 share to be paid each month under subsection
14 (b)(3);
15 (3) the amount of the planning, development, research,
16 rural expansion and department-initiated programs section
17 1310 share; and
18 (4) the amount of the Class 4 transit entity section
19 1310 share to be paid each month under subsection (b)(5).
20 "Class 1 transit entity section 1310 share." The product of
21 the Class 1 section 1310 percentage times the Class 1 to 3
22 section 1310 allocation.
23 "Class 2 transit entity section 1310 share." The product of
24 the Class 2 section 1310 percentage times the monthly Class 1 to
25 3 allocation.
26 "Class 3 transit entity section 1310 share." The product of
27 the Class 3 section 1310 percentage times the monthly Class 1 to
28 3 allocation.
29 "Class 4 transit entity section 1310 share." Four million
30 dollars during the 1991-1992 fiscal year and $4,160,000 during
20070H1878B2575 - 46 -
1 the 1992-1993 fiscal year. During the 1993-1994 through 1996-
2 1997 fiscal years, the term shall mean the Class 4 transit
3 entity section 1310 share for the prior fiscal year plus (or
4 minus) the product of the Class 4 transit entity section 1310
5 share for the prior fiscal year times the percentage increase or
6 decrease in the total funds available for distribution pursuant
7 to this section received by the Treasury Department in the most
8 recently completed fiscal year as compared with the prior fiscal
9 year. For the 1997-1998 fiscal year and each fiscal year
10 thereafter, the term shall mean 2.8% of the total amount of
11 capital project, asset maintenance and other program funds
12 projected by the department to be available under this section
13 for distribution during the subject fiscal year.
14 "Class 3 Federal operating cap percentage." The percentage
15 determined by dividing the Federal operating ceiling for a Class
16 3 transit entity by the total Federal operating ceilings for all
17 Class 3 transit entities.
18 "Class 3 State operating grant percentage." The percentage
19 determined by dividing the State subsidy received pursuant to
20 section 1303 (relating to annual appropriation and computation
21 of subsidy) during fiscal year 1990-1991 by a Class 3 transit
22 entity as stated in the latest Department of Transportation
23 certification by the total State subsidies received pursuant to
24 section 1303 during fiscal year 1990-1991 by all Class 3 transit
25 entities as stated in the latest Department of Transportation
26 certification. For purposes of calculating the amount received
27 by a Class 3 transit entity pursuant to section 1303, any
28 Federal funds transferred from other local transportation
29 organizations and transportation companies from the Federal
30 fiscal year 1990-1991 Governor's apportionment allocation,
20070H1878B2575 - 47 -
1 contained in the Urban Mass Transportation Act of 1964, shall be
2 considered to be amounts received pursuant to section 1303.
3 "Class 3 total passenger section 1310 percentage." The
4 percentage determined by dividing the total passengers
5 transported by a Class 3 transit entity as stated in the latest
6 Department of Transportation certification by the total number
7 of passengers transported by all Class 3 transit entities as
8 stated in the latest Department of Transportation certification.
9 "Class 3 vehicle hour section 1310 percentage." The
10 percentage determined by dividing the vehicle hours of a Class 3
11 transit entity as stated in the latest Department of
12 Transportation certification by the total number of vehicle
13 hours of all Class 3 transit entities as stated in the latest
14 Department of Transportation certification.
15 "Class 3 vehicle mile section 1310 percentage." The
16 percentage determined by dividing the vehicle miles of a Class 3
17 transit entity as stated in the latest Department of
18 Transportation certification by the total number of vehicle
19 miles of all Class 3 transit entities as stated in the latest
20 Department of Transportation certification.
21 "Class 4 operating assistance grant section 1310 percentage."
22 The percentage determined by dividing the Class 4 transit entity
23 adjusted base grant received by a Class 4 transit entity by the
24 total Class 4 transit entity adjusted base grants received
25 pursuant to such act by all Class 4 transit entities during
26 fiscal year 1990-1991 as stated in the Department of
27 Transportation certification.
28 "Class 4 revenue hour section 1310 percentage." The
29 percentage determined by dividing the revenue hours of a Class 4
30 transit entity as stated in the latest Department of
20070H1878B2575 - 48 -
1 Transportation certification by the total number of revenue
2 hours of all Class 4 transit entities as stated in the latest
3 Department of Transportation certification.
4 "Class 4 revenue mile section 1310 percentage." The
5 percentage determined by dividing the revenue miles of a Class 4
6 transit entity as stated in the latest Department of
7 Transportation certification by the total number of revenue
8 miles of all Class 4 transit entities as stated in the latest
9 Department of Transportation certification.
10 "Community transportation program section 1310 share." One
11 million seven hundred thousand dollars during the 1991-1992
12 fiscal year, $1,768,000 during the 1992-1993 fiscal year and,
13 during the 1993-1994 fiscal year and each fiscal year
14 thereafter, shall mean the community transportation program
15 section 1310 share for the prior fiscal year plus (or minus) the
16 product of the community transportation program section 1310
17 share for the prior fiscal year times the percentage increase or
18 decrease in the total funds available for distribution pursuant
19 to this section received by the Treasury Department in the most
20 recently completed fiscal year as compared with the prior fiscal
21 year. However, in any fiscal year in which the total funds
22 authorized to be expended from the State Lottery Fund for
23 purposes enumerated in section 1312 (relating to community
24 transportation programs) is less than $600,000, the community
25 transportation program section 1310 share shall be increased so
26 that the sum of the community transportation program section
27 1310 share plus the total amount of such moneys paid from the
28 State Lottery Fund for purposes enumerated in section 1312 shall
29 equal $2,300,000. The combined funding to any county for
30 community transportation under sections 1310 and 1312 shall not
20070H1878B2575 - 49 -
1 exceed $250,000 in any fiscal year.
2 "Department of Transportation project management oversight
3 share." One million dollars during the 1991-1992 fiscal year
4 and, during the 1992-1993 fiscal year and each fiscal year
5 thereafter, shall mean $1,000,000 or 0.25% of the total amount
6 of capital project, asset maintenance and other program funds
7 available for distribution pursuant to this section received by
8 the Treasury Department during the prior fiscal year, whichever
9 is greater.
10 "Department of Transportation certification." The
11 certification by the Department of Transportation to the
12 Treasury Department under subsection (g).
13 "Department-initiated programs." Mass transportation
14 programs with a regional or Statewide application, including,
15 without limitation, capital projects in support of intercity
16 rail passenger service, capital projects in support of intercity
17 bus service, transit safety initiatives, public-private
18 transportation partnerships, ridersharing incentive programs,
19 transportation management associations and other multimodal
20 transportation management projects.
21 "Federal operating ceiling." The maximum amount of Federal
22 funds permitted to be used by a Class 3 transit entity to
23 subsidize transit operations, as published in the November 23,
24 1990, Federal Register (or, where there is more than one transit
25 entity in a region, the maximum amount of Federal funds which
26 such Class 3 transit entity could have utilized to subsidize
27 transit operations pursuant to the subregional allocation as
28 specified in the applicable transportation improvement program)
29 for fiscal year 1990-1991.
30 "Planning, development, research, rural expansion and
20070H1878B2575 - 50 -
1 department-initiated programs section 1310 shares." The sum of
2 $83,333.33 plus 0.25% of the total capital project, asset
3 maintenance and other program funds available for distribution
4 by the Treasury Department during a particular month.
5 "Total passengers." The total of all revenue passengers plus
6 transfer passengers on second and successive rides of a local
7 transportation organization or transportation company, which are
8 funded in whole or in part by this part, with respect to the
9 most recent fiscal year reported in the most recently issued
10 Pennsylvania Mass Transit Statistical Report.
11 "Treasury Department." The State Treasurer and the Treasury
12 Department of the Commonwealth.
13 (g) Certification to Treasury Department.--On or before July
14 15 of each fiscal year, the Department of Transportation shall
15 calculate and certify to the Treasury Department the following:
16 (1) The Department of Transportation project management
17 oversight share, the community transportation program
18 sections 1310 and 1310.1 shares, the Class 1 transit entity
19 sections 1310 and 1310.1 shares, the Class 2 transit entity
20 sections 1310 and 1310.1 shares, the Class 3 transit entity
21 sections 1310 and 1310.1 shares and the Class 4 transit
22 entity sections 1310 and 1310.1 shares and the planning,
23 development, research, rural expansion and department-
24 initiated programs sections 1310 and 1310.1 shares.
25 (2) The names and addresses of each Class 1 transit
26 entity, Class 2 transit entity, Class 3 transit entity and
27 Class 4 transit entity and whether such program or entity is
28 a Class 1 transit entity, Class 2 transit entity, Class 3
29 transit entity or Class 4 transit entity.
30 (3) The vehicle miles of each Class 3 transit entity,
20070H1878B2575 - 51 -
1 the total vehicle miles of all Class 3 transit entities, the
2 Class 3 vehicle mile sections 1310 and 1310.1 percentages for
3 each Class 3 transit entity, the vehicle hours of each Class
4 3 transit entity, total vehicle hours of all Class 3 transit
5 entities, the Class 3 vehicle hour sections 1310 and 1310.1
6 percentages for each Class 3 transit entity, total passengers
7 for each Class 3 transit entity, the total passengers for all
8 Class 3 transit entities, the Class 3 total passenger
9 sections 1310 and 1310.1 percentages for each Class 3 transit
10 entity, the Federal operating ceiling for each Class 3
11 transit entity, the Federal operating ceiling for all Class 3
12 transit entities, the Federal operating cap percentage for
13 each Class 3 transit entity, the State subsidy received
14 pursuant to section 1303 (relating to annual appropriation
15 and computation of subsidy) as described in the definition of
16 "Class 3 State operating grant percentage" for each Class 3
17 transit entity, the State subsidy received pursuant to
18 section 1303 as described in the definition of "Class 3 State
19 operating grant percentage" for all Class 3 transit entities,
20 and the Class 3 State grant percentage for each Class 3
21 transit entity.
22 (4) The operating assistance grant received by each
23 Class 4 transit entity during fiscal year 1990-1991 pursuant
24 to the act of February 11, 1976 (P.L.14, No.10), known as the
25 Pennsylvania Rural and Intercity Common Carrier Surface
26 Transportation Assistance Act, the operating assistance grant
27 received by all Class 4 transit entities during fiscal year
28 1990-1991 pursuant to that act, the Class 4 operating
29 assistance grant sections 1310 and 1310.1 percentages for
30 each Class 4 transit entity, the revenue miles of each Class
20070H1878B2575 - 52 -
1 4 transit entity, the revenue miles of all Class 4 transit
2 entities, the Class 4 revenue mile sections 1310 and 1310.1
3 percentages of each Class 4 transit entity, the revenue hours
4 for each Class 4 transit entity, the revenue hours for all
5 Class 4 transit entities and the Class 4 revenue hour
6 sections 1310 and 1310.1 percentages for each Class 4 transit
7 entity.
8 § 1310.1. Supplemental public transportation assistance
9 funding.
10 (a) General rule.--Beginning July 1, 1997, 1.22% of the
11 money collected from the tax imposed under Article II of the act
12 of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
13 1971, up to a maximum of $75,000,000, shall be deposited in the
14 Supplemental Public Transportation Account, which is established
15 in the State Treasury. Within 30 days of the close of a calendar
16 month, 1.22% of the taxes received in the prior calendar month
17 shall be transferred to the account. No funds in excess of
18 $75,000,000 may be transferred to the account in any one fiscal
19 year. The money in the account shall be used by the department
20 for supplemental public transportation assistance, to be
21 distributed under this section. Transit entities may use
22 supplemental assistance moneys for any of the purposes
23 enumerated in section 1311 (relating to use of funds
24 distributed). In addition to those enumerated purposes, Class 1,
25 2 and 3 transit entities also may use the base supplemental
26 assistance share for general operations. Class 4 transit
27 entities may use all supplemental assistance moneys for general
28 operations.
29 (b) Distribution.--During each fiscal year, capital project,
30 asset maintenance and other program funds designated as
20070H1878B2575 - 53 -
1 supplemental public transportation assistance funding to be
2 distributed pursuant to this section shall be distributed as
3 follows:
4 (1) On or before the fifth day of each month, the
5 Treasury Department shall certify to the department the total
6 amount of money then available for distribution, and the
7 department shall disburse the money on or before the 20th day
8 of each month.
9 (2) Each month the department shall distribute to each
10 local transportation organization or transportation company
11 1/12 of the base supplemental assistance share of that local
12 transportation organization or transportation company.
13 (3) Each month the Treasury Department shall pay 1/12 of
14 the community transportation program section 1310.1 share for
15 that fiscal year to the Department of Transportation to make
16 grants to counties pursuant to section 1312 (relating to
17 community transportation programs) for the purpose of funding
18 capital projects of community transportation programs.
19 (4) Each month the department shall distribute 1/12 of
20 the Class 4 transit entity section 1310.1 share to Class 4
21 transit entities according to the same formula as provided
22 for distribution of funds under section 1310(b)(5) (relating
23 to distribution of funding), using the Class 4 transit entity
24 section 1310.1 share in place of the Class 4 transit entity
25 section 1310 share.
26 (5) Each month, after providing for payment of the
27 portion of the base supplemental assistance share, the
28 community transportation program section 1310.1 share and the
29 Class 4 transit entity section 1310.1 share to be distributed
30 that month, the department shall distribute all remaining
20070H1878B2575 - 54 -
1 capital project, asset maintenance and other program funds
2 required to be distributed pursuant to this section according
3 to the same formula as provided for distribution of funds in
4 section 1310(b)(6), using the transit entity's section 1310.1
5 share in place of the transit entity's section 1310 share.
6 (c) Definitions.--As used in this section, the following
7 words and phrases shall have the meanings given to them in this
8 subsection. Any term used in this section but not defined in
9 this subsection shall have the meaning given in section 1310(f):
10 "Base supplemental assistance share." The P.L. 103-122
11 percentage for each local transportation organization or
12 transportation company multiplied by $54,616,000.
13 "Capital project, asset maintenance and other program funds."
14 Moneys made available under this section to finance capital
15 projects and asset maintenance costs of local transportation
16 organizations, transportation companies or community
17 transportation programs or to fund other programs specified in
18 this section.
19 "Class 1 section 1310.1 percentage." 70.3%.
20 "Class 2 section 1310.1 percentage." 25.4%.
21 "Class 3 section 1310.1 percentage." 4.3%.
22 "Class 1 to 3 section 1310.1 allocation." The total amount
23 of capital project, asset maintenance and other program funds
24 available for distribution by the Treasury Department during a
25 particular month less:
26 (1) the amount of the base supplemental assistance share
27 to be paid each month under subsection (b)(2);
28 (2) the amount of the community transportation program
29 section 1310.1 share to be paid each month under subsection
30 (b)(3); and
20070H1878B2575 - 55 -
1 (3) the amount of the Class 4 transit entity section
2 1310.1 share to be paid each month under subsection (b)(4).
3 "Class 1 transit entity section 1310.1 share." The product
4 of the Class 1 section 1310.1 percentage times the Class 1 to 3
5 section 1310.1 allocation.
6 "Class 2 transit entity section 1310.1 share." The product
7 of the Class 2 section 1310.1 percentage times the monthly Class
8 1 to 3 allocation.
9 "Class 3 transit entity section 1310.1 share." The product
10 of the Class 3 section 1310.1 percentage times the monthly Class
11 1 to 3 allocation.
12 "Class 4 transit entity section 1310.1 share." For each
13 fiscal year, the total amount projected by the department to be
14 available for distribution in the fiscal year in accordance with
15 this section, less $54,616,000, times 2.8%.
16 "Class 3 Federal operating cap percentage." The percentage
17 determined by dividing the Federal operating ceiling for a Class
18 3 transit entity by the total of all Federal operating ceilings
19 for Class 3 transit entities.
20 "Class 3 total passenger section 1310.1 percentage." The
21 percentage determined by dividing the total passengers
22 transported by a Class 3 transit entity, as stated in the latest
23 Department of Transportation certification, by the total number
24 of passengers transported by all Class 3 transit entities, as
25 stated in the latest Department of Transportation certification.
26 "Class 3 vehicle hour section 1310.1 percentage." The
27 percentage determined by dividing the vehicle hours of a Class 3
28 transit entity, as stated in the latest Department of
29 Transportation certification, by the total number of vehicle
30 hours of all Class 3 transit entities, as stated in the latest
20070H1878B2575 - 56 -
1 Department of Transportation certification.
2 "Class 3 vehicle mile section 1310.1 percentage." The
3 percentage determined by dividing the vehicle miles of a Class 3
4 transit entity, as stated in the latest Department of
5 Transportation certification, by the total number of vehicle
6 miles of all Class 3 transit entities, as stated in the latest
7 Department of Transportation certification.
8 "Class 4 operating assistance grant section 1310.1
9 percentage." The percentage determined by dividing the Class 4
10 transit entity adjusted base grant received by a Class 4 transit
11 entity, as stated in the latest Department of Transportation
12 certification, by the total Class 4 transit entity adjusted base
13 grants received by all Class 4 transit entities during fiscal
14 year 1990-1991, as stated in the latest Department of
15 Transportation certification.
16 "Class 4 revenue hour section 1310.1 percentage." The
17 percentage determined by dividing the revenue hours of a Class 4
18 transit entity, as stated in the latest Department of
19 Transportation certification, by the total number of revenue
20 hours of all Class 4 transit entities, as stated in the latest
21 Department of Transportation certification.
22 "Class 4 revenue mile section 1310.1 percentage." The
23 percentage determined by dividing the revenue miles of a Class 4
24 transit entity, as stated in the latest Department of
25 Transportation certification, by the total number of revenue
26 miles of all Class 4 transit entities, as stated in the latest
27 Department of Transportation certification.
28 "Community transportation program section 1310.1 share." The
29 greater of:
30 (1) $1,200,000; or
20070H1878B2575 - 57 -
1 (2) the total amount projected by the Department of
2 Transportation to be available for distribution in the
3 subject fiscal year in accordance with this section, less
4 $54,616,000, times 2.5%.
5 "P.L. 103-122 percentage." The percentage determined by
6 dividing the operating assistance grant or operating assistance
7 limitation, whichever is greater, but not to exceed the total
8 apportionment of funds made available to a particular local
9 transportation organization or transportation company in this
10 Commonwealth for each Class 1 transit entity, Class 2 transit
11 entity and Class 3 transit entity and the base grants approved
12 for each Class 4 transit entity pursuant to Public Law 103-122,
13 107 Stat. 1199, for the Federal fiscal year ending September 30,
14 1994, by the total of such amounts for all Commonwealth local
15 transportation organizations and transportation companies
16 pursuant to Public Law 103-122 for the fiscal year as determined
17 by the Department of Transportation.
18 § 1311. Use of funds distributed.
19 (a) Approval of department.--
20 (1) No money made available pursuant to section 1310
21 (relating to distribution of funding) shall be expended on
22 any capital project by any local transportation organization
23 or transportation company until after the local
24 transportation organization or transportation company submits
25 the project to the department for approval and the department
26 approves the project. At the option of the local
27 transportation organization or transportation company,
28 capital projects may be submitted to the department on an
29 annual basis at the time the local transportation
30 organization or transportation company submits its capital
20070H1878B2575 - 58 -
1 budget to the department or at another time chosen by the
2 local transportation organization or transportation company.
3 (2) The department shall establish criteria for approval
4 of capital projects pursuant to this subsection, including,
5 but not limited to, consideration of estimated useful life,
6 demonstration of need and reasonableness of cost.
7 (3) Amendments to capital projects may be submitted at
8 any time to the department for its review and approval in
9 accordance with the procedures specified by the department.
10 (4) The department shall prescribe, under the authority
11 of this chapter, reasonable procedures, including deadlines,
12 for the department to review, comment and approve the capital
13 project or projects submitted by a local transportation
14 organization or transportation company.
15 (b) Funding purposes enumerated.--Moneys distributed
16 pursuant to section 1310 shall be used by local transportation
17 organizations and transportation companies for purposes of
18 paying:
19 (1) all costs of capital projects, including, without
20 limitation, the costs of acquisition, construction,
21 installation, start-up costs of operations, improvement and
22 all work and materials incident thereto, provided that funds
23 expended for capital projects pursuant to section 1310 shall
24 be matched by local or private funding in an amount equal to
25 at least one-thirtieth of the project cost;
26 (2) debt service and the cost of issuance of bonds,
27 notes and other evidences of indebtedness which a local
28 transportation organization or transportation company is
29 permitted to issue under any law of this Commonwealth; and
30 (3) to the extent permitted by this section, asset
20070H1878B2575 - 59 -
1 maintenance costs. Community transportation programs shall
2 use moneys distributed pursuant to this section only for
3 purposes enumerated in section 1312 (relating to community
4 transportation programs).
5 (c) Certain capital projects.--Notwithstanding any other
6 provision of law, each local transportation organization or
7 transportation company receiving moneys pursuant to section 1310
8 may use such moneys, in the discretion of such local
9 transportation organization or transportation company, to fund
10 all or a portion of capital projects listed in the program
11 prepared pursuant to section 2002(a)(13) of the act of April 9,
12 1929 (P.L.177, No.175), known as The Administrative Code of
13 1929.
14 (d) Management of funds.--
15 (1) Each local transportation organization or
16 transportation company receiving moneys pursuant to sections
17 1310 and 1310.1 (relating to supplemental public
18 transportation assistance funding) shall hold such moneys in
19 an account separate from other funds of the local
20 transportation organization or transportation company and
21 shall invest such moneys until such funds are used in
22 accordance with this section, with such funds being invested
23 in accordance with the limits on investment of the local
24 transportation organization or transportation company.
25 Notwithstanding any other provisions of this chapter, any
26 interest earned shall be used for capital projects and asset
27 maintenance costs during any period as determined by the
28 local transportation organization or transportation company.
29 (2) All moneys distributed pursuant to section 1310 and
30 utilized for asset maintenance under subsection (e) shall be
20070H1878B2575 - 60 -
1 matched by local or private funding in an amount equal to at
2 least 1/30 of the amount expended for such purposes, except
3 that, in the case of Class 3 and 4 transit entities, no
4 matching funds shall be required if the department shall have
5 received from the local governmental funding source which
6 would otherwise provide the matching funds a certification
7 that compliance with the matching requirement would create an
8 undue financial burden upon the local governmental funding
9 source such that a curtailment of government services
10 endangering public health and safety would ensue.
11 (3) All moneys distributed pursuant to section 1310.1
12 and utilized under this section shall be matched by local or
13 private funding in an amount equal to at least 1/30 of the
14 amount expended for such purposes, except that, in the case
15 of Class 3 and 4 transit entities, no funds utilized for
16 asset maintenance under subsection (e) shall require a local
17 match if the department shall have received from the local
18 governmental funding source which would otherwise provide the
19 matching funds a certification that compliance with the
20 matching requirement would create an undue financial burden
21 upon the local governmental funding source such that a
22 curtailment of government services endangering public health
23 and safety would ensue.
24 (e) Asset maintenance.--
25 (1) Each local transportation organization or
26 transportation company may expend moneys distributed pursuant
27 to sections 1310 and 1310.1 shares to fund asset maintenance
28 costs as provided in this subsection.
29 (2) Moneys distributed pursuant to sections 1310 and
30 1310.1 may only be used to fund asset maintenance costs
20070H1878B2575 - 61 -
1 incurred during the fiscal year in which such moneys are
2 allocated. Thereafter, such funds may only be used to fund
3 capital projects.
4 (3) On or before March 1 of each year, the department
5 shall certify to each local transportation organization or
6 transportation company the amount of capital project, asset
7 maintenance, base supplemental assistance and other program
8 funds which the department estimates each local
9 transportation organization or transportation company will be
10 entitled to receive during the ensuing fiscal year. Each
11 local transportation organization or transportation company
12 may expend moneys distributed pursuant to sections 1310 and
13 1310.1 shares to fund asset maintenance costs up to the
14 following maximum percentages of the estimate from the
15 department, including accrued interest, the amount received
16 during the prior fiscal year or the amount actually received
17 in the current fiscal year, whichever is greater:
18 (i) Class 1 transit entities may utilize for asset
19 maintenance costs up to a maximum of 30% of the funds
20 received pursuant to sections 1310 and 1310.1 shares.
21 (ii) Class 2 and 3 transit entities may utilize for
22 asset maintenance costs up to a maximum of 50% of the
23 funds received pursuant to sections 1310 and 1310.1.
24 (iii) (Deleted by amendment).
25 (iv) Class 4 transit entities may utilize for asset
26 maintenance costs up to a maximum of 50% of the funds
27 received pursuant to sections 1310 and 1310.1.
28 (f) Eligible projects.--Notwithstanding any other provision
29 of this chapter, moneys provided under section 1310 to community
30 transportation programs may be expended only in accordance with
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1 section 1312 and only to fund all or a portion of eligible
2 projects of such entities as enumerated in section 1312.
3 (g) Matching funds.--The moneys provided to local
4 transportation organizations, transportation companies or
5 community transportation programs pursuant to section 1310 may
6 be used as matching funds to obtain Federal aid for capital
7 projects.
8 (h) Use by department.--Funds appropriated to the department
9 pursuant to section 1310(b)(2) and (4) may be utilized by the
10 department for the purposes provided in either of such
11 paragraphs.
12 (i) Accounting.--Within 120 days after the end of each
13 fiscal year for capital programs established by the local
14 transportation organization or transportation company pursuant
15 to section 1310(e), each local transportation organization and
16 transportation company receiving moneys pursuant to sections
17 1310 and 1310.1 shares shall transmit to the department an
18 accounting of all funds received pursuant to sections 1310 and
19 1310.1 shares in that fiscal year. The accounting shall be in a
20 form prescribed by the department and shall include a listing of
21 all expenditures on a project by project basis and the status of
22 all unspent funds. The local transportation organization or
23 transportation company shall grant access to the department or
24 its duly authorized representatives to any and all records
25 pertaining to funds received pursuant to sections 1310 and
26 1310.1 shares.
27 (j) Limit on certain amounts expended.--Notwithstanding any
28 law to the contrary and except as provided in subsection (a) for
29 Class 4 transit entities, local transportation organizations and
30 transportation companies are authorized to expend moneys
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1 distributed pursuant to sections 1310 and 1310.1 shares for
2 asset maintenance costs in an amount not to exceed the greater
3 of:
4 (1) the maximum amount of asset maintenance expenditures
5 which could have been approved by the department for
6 expenditure by that local transportation organization or
7 transportation company for the 1991-1992 fiscal year pursuant
8 to section 17(a) of the act of August 5, 1991 (P.L.238,
9 No.26), entitled "An act amending Titles 74 (Transportation)
10 and 75 (Vehicles) of the Pennsylvania Consolidated Statutes,
11 codifying provisions relating to public transportation;
12 imposing certain fees and taxes; further providing for
13 certain Pennsylvania Turnpike projects; defining 'farm
14 equipment'; further providing for the responsibilities of
15 vehicle transferees, for exemptions from registration and
16 certificates of title and for the use of dealer plates,
17 multipurpose dealer plates and farm equipment plates; further
18 providing for funeral processions; further providing for a
19 restricted receipts fund and for registration for snowmobiles
20 and ATV's; establishing the Snowmobile Trail Advisory
21 Committee; further providing for the highway maintenance and
22 construction tax; and making repeals," based upon a
23 projection of $200,000,000 in total dedicated capital
24 assistance funds plus estimated amounts of supplemental
25 public transportation assistance funding available for
26 distribution pursuant to section 1310.1 in that fiscal year,
27 which estimate shall not be less than $75,000,000 in any
28 fiscal year; or
29 (2) the amount permitted to be expended for such
30 purposes under subsection (e).
20070H1878B2575 - 64 -
1 § 1312. Community transportation programs.
2 (a) Grants from lottery fund.--All counties except counties
3 of the first and second class shall be entitled to grants from
4 the State Lottery Fund for the purpose of adding, replacing,
5 upgrading and overhauling equipment and purchasing, constructing
6 or renovating facilities to serve as office and maintenance
7 sites for the provision of reduced fare demand-response service.
8 Equipment that may be purchased shall include, but shall not be
9 limited to, vehicles, vehicle rehabilitation, major drivetrain
10 components, communication equipment, computer equipment and
11 software and office equipment and furnishings. The amount
12 entitled to all counties and to be granted by the department
13 shall not exceed $2,300,000. The department may require the
14 counties to coordinate the acquisition of equipment through a
15 Statewide purchase program should the department find such a
16 program to be cost efficient.
17 (b) Procedure.--
18 (1) The department is hereby authorized to make grants
19 to all counties, except those of the first and second class,
20 or to entities designated by such counties to coordinate
21 services under this section in such county, for the purpose
22 of adding, replacing, upgrading and overhauling equipment for
23 the provision of shared-ride transit services responsive to
24 and accessible by the general public as well as the elderly
25 and disabled. If sufficient funds remain after all department
26 approvals for such equipment projects have been fully funded,
27 the department is hereby authorized to make grants for the
28 purchase, construction or renovation of facilities to serve
29 as office and maintenance sites for the provision of shared-
30 ride transit services responsive to and accessible by the
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1 general public as well as the elderly and disabled. Equipment
2 that may be purchased shall include, but shall not be limited
3 to, vehicles, vehicle rehabilitation, major drivetrain
4 components, communication equipment, computer equipment and
5 software and office equipment and furnishings.
6 (2) Counties other than counties of the first and second
7 class may obtain grants pursuant to this subsection by filing
8 with the department an application in a form prescribed by
9 it. The department shall require with such application a
10 transportation plan plus such other information as the
11 department may require.
12 (3) The applicant shall certify that all efforts
13 possible have been made to coordinate local service for the
14 elderly and disabled and the services to be offered with
15 these capital assets do not duplicate existing fixed route
16 services, as provided under the act of February 11, 1976
17 (P.L.14, No.10), known as the Pennsylvania Rural and
18 Intercity Common Carrier Surface Transportation Assistance
19 Act, and under other provisions of this part. The applicant
20 shall solicit comments from the local public body fixed route
21 provider and include any such comments as part of the
22 application.
23 (4) All purchases pursuant to this subsection shall be
24 made in accordance with bidding procedures established under
25 the act of May 2, 1945 (P.L.382, No.164), known as the
26 Municipality Authorities Act of 1945, or the act of August 9,
27 1955 (P.L.323, No.130), known as The County Code, whichever
28 is applicable.
29 (c) Availability of funds.--Funds not expended under this
30 section in the fiscal year in which they were made available
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1 shall not lapse and shall be available for use pursuant to this
2 section in the next succeeding fiscal years.
3 § 1313. Additional programs.
4 (a) Projects and programs enumerated.--The department is
5 hereby authorized to incur costs directly or to make grants,
6 undertake and provide financial support:
7 (1) To new rural transportation systems for the purpose
8 of funding capital, asset maintenance and operating costs of
9 new rural transportation systems. New rural transportation
10 systems may obtain grants under this section by filing for
11 each fiscal year with the department an application in a form
12 prescribed by it. The department shall require with the
13 application a transportation plan plus such other information
14 as the department may require to establish to the
15 satisfaction of the department that the new rural
16 transportation system is deserving of a grant under this
17 section.
18 (2) For the purpose of funding studies, analysis,
19 planning and development of programs for public
20 transportation assistance, services and facilities.
21 (3) To incur costs directly or to make grants for
22 department-initiated programs.
23 (4) To make grants to Class 4 transit entities for the
24 significant expansion of services by such entities from funds
25 remaining in the development, planning and rural expansion
26 share after all grants have been made for the fiscal year
27 pursuant to paragraphs (1) and (2). Grants from the
28 development, planning and rural expansion share shall be used
29 by the Class 4 transit entity for the construction,
30 acquisition, capital projects, asset maintenance and
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1 operating costs of the expansion of such entity. Class 4
2 transit entities may obtain grants by filing for each fiscal
3 year with the department an application in a form prescribed
4 by it. The department shall require with the application a
5 transportation plan plus such other information as the
6 department may require to establish to the satisfaction of
7 the department that the Class 4 transit entity is deserving
8 of a grant under this section.
9 (b) Availability of funds.--Funds not expended under this
10 section in the fiscal year in which they were made available
11 shall not lapse and shall be available for use pursuant to this
12 section in the next succeeding fiscal years.
13 § 1315. Public transportation grants management accountability.
14 (a) Performance audits.--All classes of transit entities
15 shall complete periodic management performance audits which
16 shall encompass all public transportation programs and services
17 financed in whole or in part by grants provided by the
18 department as follows:
19 (1) The department shall establish criteria to be
20 included in a performance audit performed pursuant to this
21 section. The criteria shall be published in the Pennsylvania
22 Bulletin. Separate criteria may be established for each class
23 of transit entity.
24 (2) Management performance audits shall be completed
25 within ten months of their initiation and shall be performed
26 as follows:
27 (i) Class 1 transit entities shall begin the initial
28 management performance audit required pursuant to this
29 section no later than July 1, 1999, or, with the written
30 approval of the department, within five years of the
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1 completion of the most recent performance audit.
2 Thereafter, Class 1 transit entities shall complete a
3 management performance audit at least once every five
4 years.
5 (ii) Class 2 transit entities shall begin the
6 initial management performance audit required by this
7 section no later than July 1, 2000, or, with the written
8 approval of the department, within five years of the most
9 recent performance audit. The department may extend the
10 initiation date for a period of up to five years.
11 Thereafter, Class 1 transit entities shall complete a
12 management performance audit at least once every five
13 years.
14 (iii) Class 3 transit entities in urbanized areas
15 with a population of 200,000 or greater shall begin the
16 initial management performance audit required by this
17 section no later than July 1, 2001. Class 3 transit
18 entities in urbanized areas with a population of less
19 than 200,000 shall begin the first management performance
20 audit required by this section no later than July 1,
21 2002. Thereafter, Class 3 transit entities shall perform
22 a management performance audit at least once every seven
23 years.
24 (iv) Class 4 transit entities shall begin the first
25 initial management performance audit required by this
26 section no later than July 1, 2002. Thereafter, Class 4
27 transit entities shall perform a management performance
28 audit at least once every ten years. The department shall
29 perform management performance audits for Class 4
30 entities through qualified independent contractors unless
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1 written notice is provided to the department by the Class
2 4 transit entity that the transit entity wishes to
3 perform its own audit. The notice shall be provided no
4 later than one year prior to the initiation date of the
5 next scheduled audit.
6 (3) Class 1, 2 and 3 transit entities shall bear all
7 costs of performing management performance audits pursuant to
8 this section. The cost of such management performance audits
9 for Class 4 transit entities shall be paid by the department
10 from funds made available under section 1310(d) (relating to
11 distribution of funding).
12 (4) For Class 1, 2 and 3 transit entities, the
13 management performance audit shall be conducted by a
14 qualified independent auditor selected by competitive
15 procurement. Procurement documents shall specify the scope of
16 the audit, comply with department criteria and be submitted
17 to the department for written approval prior to procurement.
18 (b) Submission of audit report; transit entity response.--
19 (1) Upon receipt of a final audit report from the
20 auditor or, in the case of Class 4 transit entities, from the
21 department, each transit entity shall prepare an action plan
22 addressing the findings and recommendations of the audit
23 report. The action plan shall be completed and approved by
24 the transit entity's governing body within two months of
25 receipt of the final audit report. The transit entity shall
26 implement its action plan in accordance with the time frames
27 specified in the plan.
28 (2) Upon approval of the action plan by the entity's
29 governing body, the transit entity shall submit the plan and
30 the auditor's report to the department. Class 1 and 2 transit
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1 entities shall also submit their action plans to the
2 Legislative Budget and Finance Committee, the chairman and
3 minority chairman of the Transportation Committee of the
4 Senate and the chairman and minority chairman of the
5 Transportation Committee of the House of Representatives.
6 (c) Customer satisfaction surveys.--Customer satisfaction
7 surveys shall be conducted as follows:
8 (1) All Class 1 and 2 entities shall conduct customer
9 satisfaction surveys at least once every two years. Class 3
10 and 4 transit entities shall conduct customer satisfaction
11 surveys at least once every three years. An initial customer
12 satisfaction survey for each transit entity shall be
13 completed and submitted to the department no later than
14 December 31, 1998.
15 (2) The department shall provide guidelines regarding
16 the scope of the surveys and suggested questions which may be
17 included in the surveys.
18 (3) Upon completion of the survey, the transit entity
19 shall submit a report to the department containing survey
20 methodology, survey results, relevant trends in the level of
21 customer satisfaction and actions taken or planned to improve
22 customer satisfaction.
23 (d) Suspension of grant funds.--The department may suspend
24 eligibility for grants under section 1303 (relating to annual
25 appropriation and computation of subsidy) for any transit entity
26 which fails to comply with any of the provisions of this
27 section.
28 (e) Restoration or continuation of funding.--The department
29 shall continue eligibility of a transit entity for grants under
30 section 1303 if the entity has initiated its audit or survey in
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1 a timely manner and the delay in completion of the audit or
2 survey is not the fault of the transit entity. The department
3 shall restore eligibility of a suspended transit entity at such
4 time as the audit or survey is completed in accordance with the
5 requirements of this section.
6 (f) Cost reduction and productivity improvement.--As part of
7 its annual application for funding under section 1303, Class 1,
8 2, 3 and 4 transit entities shall include a report outlining
9 initiatives it has undertaken to reduce costs and improve
10 productivity.
11 Section 4. Chapters 15, 81 and 82 of Title 74, added July
12 18, 2007 (P.L.169, No.44), are repealed:
13 [CHAPTER 15
14 SUSTAINABLE MOBILITY OPTIONS
15 § 1501. Scope of chapter.
16 This chapter relates to sustainable mobility options.
17 § 1502. (Reserved).
18 § 1503. Definitions.
19 The following words and phrases when used in this chapter
20 shall have the meanings given to them in this section unless the
21 context clearly indicates otherwise:
22 "Access to jobs project." A project relating to the
23 development and maintenance of transportation services designed
24 to transport welfare recipients and eligible low-income
25 individuals to and from jobs and activities related to their
26 employment as defined under 49 U.S.C. § 5316 (relating to job
27 access and reverse commute formula grants).
28 "Americans with Disabilities Act." The Americans with
29 Disabilities Act of 1990 (Public Law 101-336, 104 Stat. 327).
30 "Asset maintenance costs." All vehicle maintenance expenses,
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1 nonvehicle maintenance and materials expenses and the cost of
2 supplies used in the operation of local transportation
3 organizations and transportation companies.
4 "Award recipient." A recipient of financial assistance under
5 this chapter.
6 "Base operating allocation." The total amount of State
7 operating assistance, reimbursement in lieu of fares for senior
8 passengers and other assistance which was used for operating
9 assistance as determined by the department in fiscal year 2005-
10 2006.
11 "Capital expenditures." All costs of capital projects,
12 including, but not limited to, the costs of acquisition,
13 construction, installation, start-up of operations, improvements
14 and all work and materials incident thereto.
15 "Capital project." A system or component of a system for the
16 provision of public passenger transportation. The term includes
17 vehicles; infrastructure power; passenger amenities; storage and
18 maintenance buildings; parking facilities; the land on which any
19 capital project is situated and the land needed to support it,
20 whether owned in whole or in part; overhaul of vehicles; debt
21 service and the cost of issuance of bonds, notes and other
22 evidences of indebtedness which a local transportation
23 organization or transportation company is permitted to issue
24 under any law of this Commonwealth.
25 "Commonwealth capital bonds." Evidence of debt incurred by
26 the Commonwealth under the act of February 9, 1999 (P.L.1,
27 No.1), known as the Capital Facilities Debt Enabling Act.
28 "Community transportation service" or "shared ride service."
29 Door-to-door demand transportation that is available to the
30 general public on a nonexclusive basis, operates on a nonfixed
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1 route basis and charges a fare to all riders. The term does not
2 include exclusive ride taxi service, charter and sightseeing
3 service, nonpublic transportation, school bus and limousine
4 service.
5 "Community transportation system." A person that provides
6 community transportation service and contracts with the
7 Department of Transportation to receive revenue replacement
8 funds.
9 "Department." The Department of Transportation of the
10 Commonwealth.
11 "Financial assistance." Grants or other types of financial
12 support provided by the Department of Transportation under this
13 chapter.
14 "Fixed guideway system." A fixed-route public transportation
15 service that uses and occupies a separate right-of-way or rail
16 line for the exclusive use of public transportation and other
17 high occupancy vehicles or uses a fixed catenary system and a
18 right-of-way usable by other forms of transportation. The term
19 includes light rail, commuter rail, automated guideway transit,
20 people movers, ferry boat service and fixed guideway facilities
21 for buses such as bus rapid transit and high occupancy vehicles.
22 "Fixed-route public transportation service." Regularly
23 scheduled general public transportation that is provided
24 according to published schedules along designated routes, with
25 specified stopping points for the taking on and discharging of
26 passengers, including public bus and commuter rail systems and
27 other department-approved service. The term does not include
28 exclusive ride taxi service, charter or sightseeing service,
29 nonpublic transportation, school bus and limousine service.
30 "Fund." The Public Transportation Trust Fund established
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1 under section 1506 (relating to fund).
2 "Intercity bus service." Passenger bus service of 35 miles
3 or more in length that is provided with an over-the-road bus and
4 operated between two noncontiguous urbanized areas, between an
5 urbanized area located in one county and rural communities
6 located in another county or between rural communities located
7 in different counties and contains all of the following
8 elements:
9 (1) Service that is operated for a fare on a regularly
10 scheduled fixed-route basis.
11 (2) Service that is offered to and utilized by the
12 general public without preconditions of advance reservation
13 or membership in a particular organization.
14 "Intercity passenger rail service." Passenger railroad
15 service that connects two or more urbanized areas and is
16 determined by the Department of Transportation to qualify as
17 intercity service rather than commuter rail service.
18 "Job access and reverse commute project." A project funded
19 by the Federal Transit Administration under Federal law.
20 "Local transportation organization." Any of the following:
21 (1) A political subdivision or a public transportation
22 authority, port authority or redevelopment authority,
23 organized under the laws of this Commonwealth or pursuant to
24 an interstate compact or otherwise empowered to render,
25 contract for the rendering or assist in the rendering of
26 transportation service in a limited area in this
27 Commonwealth, even though it may also render or assist in
28 rendering transportation service in adjacent states.
29 (2) A nonprofit association that directly or indirectly
30 provides public transportation service.
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1 (3) A nonprofit association of public transportation
2 providers operating within this Commonwealth.
3 "Materials and supplies." Those categories of expenses as
4 specified in Uniform System of Accounts expense object class
5 504, National Transit Database operating expenses form F 30,
6 National Transit Database, Final Rule, Federal Transit
7 Administration, dated January 15, 1993, or any successor.
8 "New fixed guideway system." A newly constructed fixed
9 guideway system in a corridor or alignment where no such system
10 previously existed.
11 "New freedom program." A public transportation program
12 designed to provide funds to recipients for new public
13 transportation services and public transportation alternatives
14 beyond those required by the Americans with Disabilities Act of
15 1990 (Public Law 101-336, 104 Stat. 327) that assist individuals
16 with disabilities with transportation, including transportation
17 to and from jobs and employment support services administered
18 under the provisions of 49 U.S.C. § 5317 (relating to new
19 freedom program).
20 "New start." The term shall have the same meaning given it
21 in 49 CFR § 611.5 (relating to definitions).
22 "Nonurbanized area." An area within this Commonwealth that
23 does not fall within an area classified as "urbanized" by the
24 United States Bureau of the Census of the United States
25 Department of Commerce in the most recent Census of Population.
26 "Nonvehicle maintenance expenses." The categories of costs
27 associated with the inspection, maintenance and repair of
28 assets, other than vehicles, as specified in Uniform System of
29 Accounts, expense function 042, National Transit Database
30 operating expenses form, F 30, National Transit Database, Final
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1 Rule, Federal Transit Administration, dated January 15, 1993, or
2 any successor.
3 "Operating expenses." Total expenses required to continue
4 service to the public and to permit needed improvements in
5 service which are not self-supporting and otherwise for any
6 purpose in furtherance of public passenger transportation,
7 including all State asset maintenance costs. The term does not
8 include expenditures for capital projects unless specific
9 approval is provided by the Department of Transportation.
10 "Operating revenue." The total revenue earned by a local
11 transportation organization or a transportation company through
12 its transit operations. The term includes all of the following:
13 (1) Passenger fares.
14 (2) Reimbursements provided in lieu of fares for senior
15 passengers.
16 (3) Charter, school bus and advertising revenue.
17 (4) Other miscellaneous revenue such as public and
18 private route guarantee funds.
19 "Paratransit service." Transit service operating on a
20 nonfixed-route basis in order to provide complementary
21 transportation service to persons who are functionally unable to
22 use fixed-route public transportation service, as required by
23 the Americans with Disabilities Act of 1990 (Public Law 101-336,
24 104 Stat. 327).
25 "Passengers." The total of all originating passengers plus
26 transfer passengers carried on fixed-route public transportation
27 service and paratransit service with respect to the most recent
28 fiscal year as reported in the most recent Public Passenger
29 Transportation Performance Report.
30 "Public passenger transportation." Transportation within an
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1 area that includes a municipality or other built-up place that
2 is appropriate in the judgment of the Department of
3 Transportation to serve commuters or others in the locality,
4 taking into consideration the local patterns and trends of
5 growth by bus or rail or other conveyance, either publicly or
6 privately owned, serving the general public. The term does not
7 include school buses, charter or sightseeing services.
8 "Public Passenger Transportation Performance Report." An
9 annual report completed by the Department of Transportation
10 which shall include all of the following:
11 (1) Each local transportation organization's passengers,
12 revenue vehicle miles, revenue vehicle hours, and senior
13 passengers statistics for the most recently available fiscal
14 year.
15 (2) Any other statistical information that the
16 Department of Transportation deems necessary.
17 "Revenue replacement funds." Payments made to local
18 transportation organizations and transportation companies to
19 offset or partially offset fares.
20 "Revenue vehicle hours." The total amount of time calculated
21 in hours during which vehicles are in service and available for
22 public use in fixed-route public transportation service or
23 paratransit service with respect to the most recent fiscal year
24 as reported in the most recent Public Passenger Transportation
25 Performance Report. The term does not include deadhead hours.
26 "Revenue vehicle miles." The total amount of distance
27 calculated in miles during which vehicles are in service and
28 available for public use in fixed-route public transportation
29 service or paratransit service with respect to the most recent
30 fiscal year as reported in the most recent Public Passenger
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1 Transportation Performance Report. The term does not include
2 deadhead miles.
3 "Reverse commute project." A public transportation project
4 designed to transport residents of urbanized and nonurbanized
5 areas to suburban employment opportunities as defined under 49
6 U.S.C. § 5316 (relating to job access and reverse commute
7 formula grants).
8 "Secretary." The Secretary of Transportation of the
9 Commonwealth.
10 "Senior citizen." A person who is at least 65 years of age.
11 "Senior passenger." A senior citizen who rides on fixed-
12 route service.
13 "Senior passengers." The number of senior passengers
14 transported by a local transportation organization with respect
15 to the most recent fiscal year as reported in the most recent
16 Public Passenger Transportation Performance Report.
17 "Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
18 known as the Tax Reform Code of 1971.
19 "Transportation company." A person that renders public
20 passenger transportation service.
21 "Urbanized area." A portion of this Commonwealth classified
22 as urbanized by the United States Bureau of the Census of the
23 United States Department of Commerce in the most recent Census
24 of Population.
25 "Vehicle maintenance expenses." The categories of costs
26 associated with the inspection, maintenance and repair of
27 vehicles as specified in Uniform System of Accounts, Expense
28 Function 041, National Transit Database operating expenses form
29 F 30, National Transit Database, Final Rule, Federal Transit
30 Administration, dated January 15, 1993, or any successor.
20070H1878B2575 - 79 -
1 "Welfare-to-work." Any Federal or State program designed to
2 move individuals from dependency on public welfare programs to
3 self-sufficiency through paid work.
4 § 1504. Department authorization.
5 (a) General.--The department may, within the limitations
6 provided in this chapter, incur costs directly and provide
7 financial assistance for the purposes and activities enumerated
8 in this chapter.
9 (b) Supplementation of Federal and local funds.--The
10 authority conferred on the department by this chapter includes
11 providing financial assistance for public passenger
12 transportation purposes and supplementing Federal funding or
13 local funding or both.
14 § 1505. Regulations.
15 (a) General rule.--To effectuate and enforce the provisions
16 of this chapter, the department shall promulgate necessary rules
17 and regulations and prescribe conditions and procedures in order
18 to assure compliance in carrying out the purposes for which
19 financial assistance may be provided under this chapter.
20 (b) Temporary regulations.--
21 (1) Unless otherwise provided in this chapter, in order
22 to facilitate the prompt implementation of this chapter,
23 during the two-year period following the effective date of
24 this section, the department shall promulgate temporary
25 regulations which shall expire four years from the effective
26 date of this section. The temporary regulations shall be
27 exempt from the following:
28 (i) Sections 201, 202, 203 and 204 of the act of
29 July 31, 1968 (P.L.769, No.240), referred to as the
30 Commonwealth Documents Law.
20070H1878B2575 - 80 -
1 (ii) The act of June 25, 1982 (P.L.633, No.181),
2 known as the Regulatory Review Act.
3 (2) The authority of the department to promulgate
4 temporary regulations under this subsection shall expire two
5 years from the effective date of this section. Regulations
6 adopted after the two-year period shall be promulgated as
7 provided by statute.
8 § 1506. Fund.
9 (a) Establishment.--A special fund is established within the
10 State Treasury to be known as the Public Transportation Trust
11 Fund. Money in the fund is hereby appropriated, upon approval of
12 the Governor, to the department for the purposes set forth under
13 this chapter.
14 (b) Deposits to fund by department.--
15 (1) The following apply:
16 (i) Except as provided under subparagraph (ii), upon
17 receipt, the department shall deposit into the fund the
18 revenues received by the department under 75 Pa.C.S. Ch.
19 89 (relating to Pennsylvania Turnpike) and the lease
20 agreement executed between the department and the
21 Pennsylvania Turnpike Commission under 75 Pa.C.S. §
22 8915.3 (relating to lease of Interstate 80) as follows:
23 (A) For fiscal year 2007-2008, $250,000,000.
24 (B) For fiscal year 2008-2009, $250,000,000.
25 (C) For fiscal year 2009-2010, $250,000,000.
26 (D) For fiscal year 2010-2011 and each fiscal
27 year thereafter, the amount calculated for the
28 previous fiscal year, increased by 2.5%.
29 (ii) The deposits made to the fund under this
30 subsection shall equal $250,000,000 annually for each
20070H1878B2575 - 81 -
1 fiscal year commencing after the expiration of the
2 conversion period if the conversion notice is not
3 received by the secretary prior to expiration of the
4 conversion period as set forth under 75 Pa.C.S. §
5 8915.3(3).
6 (2) Upon receipt, the department shall deposit the
7 amount made available to the department as an executive
8 authorization and any appropriation for the 2007-2008 fiscal
9 year and each fiscal year thereafter from the State Lottery
10 Fund for fixed route transit and for the Free Transit Program
11 for Senior Citizens established under the act of August 26,
12 1971 (P.L.351, No.91), known as the State Lottery Law. The
13 funds deposited under this paragraph shall only be used as
14 permitted by the State Lottery Law, except that:
15 (i) funds may be used to pay estimated transit
16 losses resulting from providing free service for senior
17 passengers during the provider's regular hours of
18 service; and
19 (ii) fares for senior citizens on commuter rail
20 service shall be limited to $1 per trip and shall be
21 extended to all hours of commuter rail service.
22 (c) Other deposits.--The following shall be deposited into
23 the fund annually:
24 (1) 4.4% of the amount collected under Article II of the
25 Tax Reform Code. Revenues under this paragraph shall be
26 deposited into the fund by the 20th day of each month for the
27 preceding month. The amount deposited under this paragraph is
28 estimated to be equivalent of the money available to the
29 department from the following sources:
30 (i) The Supplemental Public Transportation Account
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1 established under former section 1310.1 (relating to
2 supplemental public transportation assistance funding).
3 (ii) The amount appropriated annually by the
4 Commonwealth from the General Fund for mass transit
5 programs pursuant to a General Appropriations Act.
6 (2) An amount of proceeds of Commonwealth capital bonds,
7 as determined annually by the Secretary of the Budget.
8 (3) Revenue in the Public Transportation Assistance Fund
9 established under Article XXIII of the Tax Reform Code not
10 otherwise dedicated pursuant to law.
11 (4) Other appropriations, deposits or transfers to the
12 fund.
13 (d) Use of revenues.--Money in the fund shall be used by the
14 department as follows:
15 (1) to provide financial assistance through the programs
16 established under this chapter;
17 (2) for costs incurred directly by the department in the
18 administration of public passenger transportation programs,
19 including under this chapter; and
20 (3) for all other purposes enumerated under this
21 chapter.
22 (e) Program funding amounts.--Subject to available funds,
23 the programs established under this chapter shall be funded
24 annually as follows:
25 (1) For the program established under section 1513
26 (relating to operating program), the following amounts shall
27 be allocated from the fund:
28 (i) All revenues deposited in the fund under
29 subsection (b)(1).
30 (ii) All revenues deposited in the fund under
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1 subsection (b)(2).
2 (iii) 69.99% of the revenues deposited in the fund
3 under subsection (c)(1).
4 (iv) All revenues deposited into the fund under
5 subsection (c)(3).
6 (2) (i) Except as provided under subparagraph (ii), for
7 the program established under section 1514 (relating to asset
8 improvement program):
9 (A) By the proceeds of Commonwealth capital
10 bonds deposited into the fund under subsection
11 (c)(2).
12 (A.1) For fiscal year 2007-2008, $50,000,000
13 from the revenues received by the department under 75
14 Pa.C.S. Ch. 89 and the lease agreement executed
15 between the department and the Pennsylvania Turnpike
16 Commission under 75 Pa.C.S. § 8915.3. The amount
17 received by the department under this section shall
18 be deposited into the fund prior to distribution and
19 shall be in addition to the amounts received under
20 subsection (b)(1).
21 (B) For fiscal year 2008-2009, $100,000,000 from
22 the revenues received by the department under 75
23 Pa.C.S. Ch. 89 and the lease agreement executed
24 between the department and the Pennsylvania Turnpike
25 Commission under 75 Pa.C.S. § 8915.3. The amount
26 received by the department under this section shall
27 be deposited into the fund prior to distribution and
28 shall be in addition to the amounts received under
29 subsection (b)(1).
30 (C) For fiscal year 2009-2010, $150,000,000 from
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1 the revenues received by the department under 75
2 Pa.C.S. Ch. 89 and the lease agreement executed
3 between the department and the Pennsylvania Turnpike
4 Commission under 75 Pa.C.S. § 8915.3. The amount
5 received by the department under this section shall
6 be deposited into the fund prior to distribution and
7 shall be in addition to the amounts received under
8 subsection (b)(1).
9 (D) For fiscal year 2010-2011 and each fiscal
10 year thereafter, the amount calculated for the prior
11 fiscal year, increased by 2.5% from the revenues
12 received by the department under 75 Pa.C.S. Ch. 89
13 and the lease agreement executed between the
14 department and the Pennsylvania Turnpike Commission
15 under 75 Pa.C.S. § 8915.3. The amount received by the
16 department under this section shall be deposited into
17 the fund prior to distribution and shall be in
18 addition to the amounts received under subsection
19 (b)(1).
20 (ii) If the conversion notice is not received by the
21 secretary prior to the end of the conversion period as
22 set forth in 75 Pa.C.S. § 8915.3(3), no additional
23 allocation shall be made under subparagraph (i).
24 (3) For the program established under section 1516
25 (relating to programs of Statewide significance), 13.24% of
26 the revenues deposited in the fund under subsection (c)(1)
27 shall be allocated from the fund.
28 (4) For the program established under section 1517
29 (relating to capital improvements program), 16.77% of the
30 revenues deposited in the fund under subsection (c)(1).
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1 Additional funds for this program may be provided from the
2 funds allocated but not distributed based on the limitation
3 set forth under section 1513(c)(3).
4 § 1507. Application and approval process.
5 (a) Application.--An eligible applicant that wishes to
6 receive financial assistance under this chapter shall submit a
7 written application to the department, on a form developed by
8 the department, which shall include the following:
9 (1) The name and address of the applicant.
10 (2) The name and telephone number of a contact person
11 for the applicant.
12 (3) The amount and type of financial assistance
13 requested and the proposed use of the funds.
14 (4) A statement as to the particular need for the
15 financial assistance.
16 (5) A certified copy of a current resolution authorizing
17 submission of the application if the applicant is a governing
18 body.
19 (6) Evidence satisfactory to the department of the
20 commitment for matching funds required under this chapter
21 sufficient to match the projected financial assistance
22 payments at the same times that the financial assistance
23 payments are to be provided.
24 (7) Any other information the department deems necessary
25 or desirable.
26 (b) Approval and award.--Upon determining that an applicant
27 has complied with this chapter, applicable rules and regulations
28 and any other requirement with respect to the financial
29 assistance requested, the department may award financial
30 assistance to the applicant. If the department awards financial
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1 assistance to the applicant, the department and the applicant
2 shall enter into a financial assistance agreement setting forth
3 the terms and conditions governing the use of the financial
4 assistance and the timing of payment of the funds. The
5 department shall develop guidelines for the application for and
6 awarding of financial assistance under this chapter and shall
7 forward them to the Legislative Reference Bureau for publication
8 in the Pennsylvania Bulletin.
9 (c) Restriction on use of funds.--Financial assistance under
10 this chapter shall be used only for activities set forth under
11 the financial assistance agreement unless the department grants
12 the award recipient a waiver allowing the funds to be used for a
13 different purpose. The department's regulations shall describe
14 circumstances under which it will consider waiver requests and
15 shall set forth all information to be included in a waiver
16 request. The maximum duration of a waiver shall be one year, and
17 a waiver request shall include a plan of corrective action to
18 demonstrate that the award recipient does not have an ongoing
19 need to use financial assistance funds for activities other than
20 those for which funds were originally awarded.
21 § 1508. Federal funding.
22 (a) General rule.--The department shall administer the
23 program programs established under this chapter in a manner that
24 permits full cooperation between Federal, State and local
25 governments, agencies and instrumentalities, local
26 transportation organizations and private interests, so as to
27 result in as effective and economical a program as possible.
28 (b) Agreements.--The department may enter into agreements
29 for mutual cooperation between or among the department and a
30 Federal agency, local transportation organization or
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1 transportation company concerning a project to be funded with
2 financial assistance under this chapter, including joint
3 applications for Federal grants.
4 (c) General authority of department.--The department may do
5 anything necessary or desirable to secure financial aid or
6 cooperation of a Federal agency for a project funded with
7 financial assistance under this chapter and to comply with a
8 Federal statute or lawful requirement of a Federal agency
9 authorized to administer a program of Federal aid to
10 transportation. The department may enter into a protective
11 agreement with organized labor to the extent required under 49
12 U.S.C. § 5333 (relating to labor standards) in order to obtain
13 Federal grant money for transportation assistance. Protective
14 agreements shall be narrowly drawn and strictly construed to
15 provide no more than the minimum protections required by the
16 United States Department of Labor for the agreements.
17 (d) Direct recipients.--Local transportation organizations
18 that are direct recipients of Federal funding shall be under no
19 obligation to enter into contracts with the department for
20 expenditure of those funds, except that the department may
21 require a contract for expenditure of the State portion of the
22 project assisted by those Federal funds.
23 § 1509. Limitation on decisions, findings and regulations of
24 department.
25 All decisions, findings and regulations made by the
26 department pursuant to this chapter shall be for the purposes of
27 this chapter only and shall not constitute evidence before a
28 regulatory body of this Commonwealth or any other jurisdiction.
29 § 1510. Program oversight and administration.
30 (a) Review and oversight.--The department shall initiate and
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1 maintain a program of financial and performance review and
2 oversight for all programs receiving financial assistance under
3 this chapter. The department may perform independent financial
4 audits of each award recipient to ensure compliance by award
5 recipients with this chapter, department regulations and
6 policies and financial assistance agreements. Audits shall be
7 conducted in accordance with generally accepted auditing
8 standards.
9 (b) State Rail Transit Safety Inspection Program.--The
10 department may conduct a State Rail Transit Safety Inspection
11 Program, as may be defined from time to time by the Federal
12 Transit Administration, to meet oversight requirements of the
13 Federal Transit Administration. The public transportation modes
14 covered shall include heavy rail, light rail, trackless trolley
15 bus and inclined plane services and related facilities.
16 § 1511. Report to Governor and General Assembly.
17 The following shall apply:
18 (1) Except as provided in paragraph (2), the department
19 shall submit a public passenger transportation performance
20 report to the Governor and the General Assembly by April 30
21 of each year, covering the prior fiscal year.
22 (2) The report covering the 2005-2006 fiscal year shall
23 be submitted by July 31, 2007.
24 § 1512. Coordination.
25 Coordination is required in regions where two or more award
26 recipients have services or activities for which financial
27 assistance is being provided under this chapter to assure that
28 the services or activities are provided efficiently and
29 effectively.
30 § 1513. Operating program.
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1 (a) Eligible applicants.--The following may apply for
2 financial assistance for operating expenses under this section:
3 (1) The governing body of a municipality or an
4 instrumentality of a municipality.
5 (2) A Commonwealth agency or instrumentality.
6 (3) A local transportation organization.
7 (b) Applications.--In addition to information required under
8 section 1507 (relating to application and approval process), an
9 application for financial assistance under this section shall
10 include the applicant's reasonable estimates of operating
11 revenue and government subsidies sufficient to cover all
12 projected operating expenses.
13 (c) Distribution formula.--
14 (1) No later than 15 business days after the effective
15 date of this section the department shall forward to the
16 Legislative Reference Bureau for publication in the
17 Pennsylvania Bulletin the base operating allocation for each
18 local transportation organization.
19 (1.1) For purposes of determining the amount of
20 assistance available for distribution under this subsection,
21 in addition to the amounts allocated under section
22 1506(e)(1)(relating to fund), an amount equal to the revenue
23 in the Public Transportation Assistance Fund dedicated
24 pursuant to law shall be included.
25 (2) For fiscal year 2007-2008 and each fiscal year
26 thereafter each qualifying local transportation organization
27 shall receive financial assistance which shall consist of the
28 following:
29 (i) Its base operating allocation multiplied by
30 1.0506.
20070H1878B2575 - 90 -
1 (ii) An additional amount which shall be allocated
2 based on the following distribution formula:
3 (A) Twenty-five percent of the award amount
4 shall be based on the number of passengers. The
5 actual amount received by each local transportation
6 organization under this clause shall be calculated as
7 follows:
8 (I) Multiply the total amount of funding
9 available for distribution under this paragraph
10 by 0.25.
11 (II) Multiply the product under subclause
12 (I) by the local transportation organization's
13 number of passengers.
14 (III) Divide the product under subclause
15 (II) by the total number of passengers for all
16 local transportation organizations.
17 (B) Ten percent of the award amount shall be
18 based on the number of senior passengers to offset
19 free fares for senior passengers. The actual amount
20 received by each local transportation organization
21 under this clause shall be calculated as follows:
22 (I) Multiply the total amount of funding
23 available for distribution under this paragraph
24 by 0.10.
25 (II) Multiply the product under subclause
26 (I) by the local transportation organization's
27 number of senior passengers.
28 (III) Divide the product under subclause
29 (II) by the total number of senior passengers for
30 all local transportation organizations.
20070H1878B2575 - 91 -
1 (C) Thirty-five percent of the award amount
2 shall be based on the number of revenue vehicle
3 hours. The actual amount received by each local
4 transportation organization under this clause shall
5 be calculated as follows:
6 (I) Multiply the total amount of funding
7 available for distribution under this paragraph
8 by 0.35.
9 (II) Multiply the product under subclause
10 (I) by the local transportation organization's
11 number of revenue vehicle hours.
12 (III) Divide the product under subclause
13 (II) by the total of the revenue vehicle hours
14 for all local transportation organizations.
15 (D) Thirty percent of the award amount shall be
16 based on the number of revenue vehicle miles. The
17 actual amount received by each local transportation
18 organization under this clause shall be calculated as
19 follows:
20 (I) Multiply the total amount of funding
21 available for distribution under this paragraph
22 by 0.30.
23 (II) Multiply the product under subclause
24 (I) by the local transportation organization's
25 number of revenue vehicle miles.
26 (III) Divide the product under subclause
27 (II) by the total number of revenue vehicle miles
28 for all local transportation organizations.
29 (3) For the 2007-2008 fiscal year, no local
30 transportation organization shall receive total financial
20070H1878B2575 - 92 -
1 assistance under this subsection that would be more than 50%
2 higher than the amount it receives under paragraph (2)(i).
3 For each subsequent fiscal year, the increase in the total
4 financial assistance provided to each local transportation
5 organization shall not exceed 20% of the prior year
6 allocation.
7 (c.1) Minimum.--No local transportation organization shall
8 receive financial assistance under this section in an amount
9 less than the amount received in the previous fiscal year.
10 (d) Local match requirements.--
11 (1) For fiscal year 2007-2008 and each fiscal year
12 thereafter, except as provided under paragraph (2), financial
13 assistance provided under this section shall be matched by
14 local or private cash funding in an amount not less than the
15 greater of:
16 (i) 15% of the amount of the financial assistance
17 being provided; or
18 (ii) the amount required under former section
19 1311(d) (relating to use of funds distributed) for fiscal
20 year 2006-2007.
21 (2) Beginning in fiscal year 2007-2008 and each fiscal
22 year thereafter, if the local matching funds provided are
23 less than 15% of the amount of financial assistance received,
24 the local transportation organization's required local
25 matching funds shall increase annually in order to meet the
26 15% requirement set forth under paragraph (1)(i). The local
27 matching funds shall be increased annually by a minimum of 5%
28 above the amount of local matching funds provided in the
29 previous fiscal year unless a lesser amount is necessary to
30 meet the 15% requirement set forth under paragraph (1)(i).
20070H1878B2575 - 93 -
1 (3) Eligible local matching funds shall consist only of
2 cash contributions provided by one or more municipalities or
3 counties The amount of the match and the time period during
4 which the match must continue to be available shall be
5 specified in the financial assistance agreement. Funding
6 provided by local and private entities, including advertising
7 or naming rights, may qualify as local matching funds to the
8 extent they provide for the cost of transit service that is
9 open to the public. The following shall not be considered
10 local matching funds:
11 (i) Any form of transit operating revenue or other
12 forms of transit income provided by the local
13 transportation organization.
14 (ii) Funds used to replace fares.
15 (4) A municipality in a metropolitan area which is a
16 member of a local transportation organization is authorized
17 to provide annual financial assistance from current revenues
18 to the local transportation organization of which it is a
19 member or enter into a long-term agreement for payment of
20 money to assist in defraying the costs of operation,
21 maintenance and debt service of the local transportation
22 organization or of a particular public transportation project
23 of a local transportation organization. The obligation of a
24 municipality under an agreement pursuant to this paragraph
25 shall not be considered to be a part of the indebtedness of
26 the municipality, nor shall the obligation be deemed to
27 impair the status of any indebtedness of the municipality
28 which would otherwise be considered self-sustaining.
29 (e) Performance reviews.--
30 (1) The department may conduct performance reviews of an
20070H1878B2575 - 94 -
1 award recipient under this section to determine the
2 effectiveness of the financial assistance. Reviews shall be
3 conducted at regular intervals as established by the
4 department in consultation with the management of the award
5 recipient. After completion of a review, the department shall
6 issue a report that:
7 (i) highlights exceptional performance and
8 identifies any problems that need to be resolved;
9 (ii) assesses performance, efficiency and
10 effectiveness of the use of the financial assistance;
11 (iii) makes recommendations on follow-up actions
12 required to remedy any problem identified; and
13 (iv) provides an action plan documenting who should
14 perform the recommended actions and a time frame within
15 which they should be performed.
16 (2) The department shall deliver the report to the
17 Governor, to the chairman and minority chairman of the
18 Transportation Committee of the Senate and to the chairman
19 and minority chairman of the Transportation Committee of the
20 House of Representatives. The department's regulations shall
21 contain a description of the impact on both the amount of,
22 and future eligibility for, financial assistance under this
23 chapter based upon the degree to which the local
24 transportation organization complies with the recommendations
25 in the report. The department shall develop a list of best
26 practices revealed by the reports issued under this
27 subsection and shall post them on the department's Internet
28 website.
29 (f) Performance criteria.--Criteria used for the reviews
30 conducted under subsection (e) shall consist of passengers per
20070H1878B2575 - 95 -
1 revenue vehicle hour, operating costs per revenue vehicle hour,
2 operating revenue per revenue vehicle hour, operating costs per
3 passenger and other items as the department may establish. The
4 department's regulations shall set forth the minimum system
5 performance criteria, based upon comparison of the award
6 recipient to its past performance and to its peers, that an
7 award recipient must satisfy.
8 (g) Failure to satisfy minimum performance criteria.--
9 (1) If a performance review conducted under subsection
10 (e) reveals that the performance of an award recipient's
11 transportation system has decreased compared to performance
12 determined through a prior review, the department may, upon
13 the written request of an award recipient, waive any
14 requirement for a reduction in the amount of financial
15 assistance to be awarded under this section for a reasonable
16 time period to allow the award recipient to bring the system
17 back to the required performance level. The award recipient
18 shall provide written justification for providing a time
19 period longer than two years. In order to obtain the waiver
20 for the period requested, the award recipient must do all of
21 the following:
22 (i) Develop an action plan to improve system
23 performance that contains key measurable milestones. The
24 action plan must be acceptable to the department and must
25 be approved by the department in writing.
26 (ii) Submit quarterly progress reports on the action
27 plan to the department.
28 (2) The department shall review and evaluate the award
29 recipient's progress to determine if the system has improved.
30 If the system has improved, the award recipient will remain
20070H1878B2575 - 96 -
1 eligible for full formula funding as determined under
2 subsection (c). If the system has not improved by the end of
3 the waiver period, the waiver will be withdrawn. Expenses
4 incurred by the award recipient as a result of the failure of
5 the award recipient's system to meet the minimum performance
6 criteria shall be borne by the award recipient.
7 (h) Adjustments to minimum performance criteria.--Upon
8 written request of an award recipient, the department may adjust
9 the minimum performance criteria described in subsection (g) in
10 a given year if the performance of the award recipient's system
11 is adversely affected by circumstances which are beyond the
12 award recipient's control. Examples are labor strikes,
13 infrastructure failures and natural disasters. The request must
14 include the award recipient's reasons for seeking the
15 adjustment.
16 § 1514. Asset improvement program.
17 (a) Eligible applicants.--
18 (1) The following may apply for financial assistance for
19 improvement, replacement or expansion of capital projects
20 under this section:
21 (i) A local transportation organization.
22 (ii) An agency or instrumentality of the
23 Commonwealth.
24 (iii) A person responsible for coordinating
25 community transportation program services.
26 (iv) Any other person the department deems to be
27 eligible.
28 (2) The department shall develop and maintain four-year
29 and 12-year plans that summarize the capital projects and
30 financial assistance commitments for each applicant. The
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1 department may enter into multiyear agreements to provide
2 financial assistance for capital projects based upon cash
3 flow and revenue projections for the fund. Each capital
4 project shall be based on the plan developed by the
5 department.
6 (b) Applications.--In addition to information required under
7 section 1507 (relating to application and approval process), an
8 application for financial assistance under this section shall
9 include the following:
10 (1) Evidence satisfactory to the department that the
11 proposed capital project is included in the first year of the
12 applicant's four-year capital plan and its federally approved
13 transportation improvement program.
14 (2) If an applicant is requesting financial assistance
15 for replacement of a capital project, evidence satisfactory
16 to the department that the capital project to be replaced has
17 exceeded the useful life criteria as defined by the
18 department. At its discretion, the department may approve
19 funding to replace a capital project that does not exceed the
20 useful life criteria if the applicant provides documentation
21 acceptable to the department to justify the early replacement
22 of the capital project.
23 (3) If the applicant is requesting financial assistance
24 for expansion of a capital project, evidence satisfactory to
25 the department that the applicant will have sufficient future
26 annual operating funds to support the proposed expansion.
27 (4) Any other information required by the department,
28 including a return on investment analysis or a life cycle
29 cost analysis, or both.
30 (c) Local match requirements.--Financial assistance under
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1 this section shall be matched by local or private cash funding
2 in an amount not less than 3.33% of the amount of the financial
3 assistance being provided. The source of funds for the local
4 match shall be subject to the requirements of section 1513(d)(3)
5 (relating to operating program).
6 (d) Conditions for receipt of bond funding.--Financial
7 assistance that is funded by proceeds of Commonwealth capital
8 bonds may be provided to an applicant if all of the following
9 conditions are met:
10 (1) The applicant's capital project has been authorized
11 by a capital budget project itemization act.
12 (2) The applicant's capital project was included in the
13 department's approved annual release request approving the
14 use of the funds for the proposed capital project in the
15 fiscal year in which the funds are expected to be expended.
16 (3) The department has approved the underlying
17 application for the capital project.
18 (e) Priorities.--The award of financial assistance under
19 this section shall be subject to the following set of priorities
20 in descending order of significance unless a compelling return
21 on investment analysis for a project in a lower category is
22 provided to and approved by the department:
23 (1) Requests for funds required to support existing
24 local bond issues currently supported with State revenue
25 sources, such as debt service and asset leases. The
26 Commonwealth pledges to and agrees with any person, firm or
27 corporation holding any bonds previously issued by, or any
28 other debt incurred by, a local transportation organization,
29 and secured in whole or part by a pledge of the funds
30 provided to the local transportation organization from the
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1 fund that the Commonwealth will not limit or alter rights
2 vested in a local transportation organization in any manner
3 inconsistent with obligations of the local transportation
4 organization to the obligees of the local transportation
5 organization until all bonds previously issued or other debt
6 incurred, together with the interest thereon, is fully paid
7 or provided for.
8 (2) Requests for funds required to match federally
9 approved capital projects funded under 49 U.S.C. §§ 5307
10 (relating to urbanized area formula grants) and 5309
11 (relating to capital investment grants and loans) and other
12 federally approved capital projects.
13 (3) Other non-Federal capital projects as determined by
14 the department, which shall be further subject to the
15 following set of priorities in descending order of
16 significance:
17 (i) Essential emergency asset improvement projects.
18 (ii) Standard replacement of existing assets that
19 have exceeded their useful life.
20 (iii) Asset improvement projects to extend the
21 useful life of the affected assets.
22 (iv) Acquisition of new assets and other acceptable
23 purposes, other than projects to be funded under the new
24 initiatives program described in section 1515 (relating
25 to new initiatives program), as determined by the
26 department.
27 (f) Bonding by award recipients.--With the approval of the
28 department, an award recipient that is permitted by law to issue
29 bonds may do so for the purpose of financing a multiyear capital
30 project. The department shall enter into an agreement with the
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1 award recipient providing that payments of the awarded funds
2 sufficient to satisfy requirements of the bonds issued be made
3 directly to the trustee of the bond holders until such time as
4 the bonds are retired.
5 § 1515. New initiatives program.
6 (a) Eligible applicants.--Persons eligible to apply for
7 financial assistance under section 1514 (relating to asset
8 improvement program) shall also be eligible to apply for
9 financial assistance for new or expansions of fixed guideway
10 systems under this section.
11 (b) Applications.--In addition to the information required
12 under section 1507 (relating to application and approval
13 process), an application for financial assistance under this
14 section shall include all of the information required in an
15 application for financial assistance under section 1514
16 (relating to asset improvement program). If the application is
17 for a proposed expansion of a capital project, the application
18 shall also include evidence satisfactory to the department that
19 the applicant will have sufficient future annual operating funds
20 to support the proposed expansion.
21 (c) Source of funds and priorities.--
22 (1) Sums allocated for the asset improvement program
23 under section 1506(e)(2) (relating to fund), up to a maximum
24 of $50,000,000 annually, may be used by the department to
25 provide financial assistance under this section.
26 (2) In awarding financial assistance under this section,
27 the department shall give priority to applicants that intend
28 to use the funds to satisfy the local matching portion of
29 federally approved New Starts projects funded pursuant to 49
30 U.S.C. § 5309 (relating to capital investment grants and
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1 loans). The department may fund projects that do not receive
2 funding from the Federal New Starts Program if the applicant
3 can provide sufficient evidence that the project can meet all
4 of the following requirements:
5 (i) Investments in existing service areas have been
6 optimized.
7 (ii) An analysis reveals a reasonable return on
8 investment.
9 (iii) The public benefit of the project has been
10 identified.
11 (iv) There exists a local dedicated funding commitment
12 to pay any required local match for the project and ongoing
13 operating costs.
14 (v) There exists local technical ability and capacity to
15 manage, construct and operate the project.
16 (vi) The project is supported by the adoption of an
17 integrated land use plan by local municipalities.
18 (d) Local match requirement.--Financial assistance under
19 this section shall be matched by local or private cash funding
20 in an amount not less than 3.33% of the amount of the financial
21 assistance being provided. The source of funds for this local
22 match shall be subject to the requirements of section 1513(d)(3)
23 (relating to operating program).
24 § 1516. Programs of Statewide significance.
25 (a) General rule.--Money in the fund allocated for programs
26 of Statewide significance shall be used by the department to
27 support public transportation programs, activities and services
28 not otherwise fully funded through the operating program,
29 capital program or asset improvement program. In addition to any
30 requirements contained in this section, applications must comply
20070H1878B2575 - 102 -
1 with section 1507 (relating to application and approval
2 process). Programs of Statewide significance shall include:
3 (1) The Persons with Disabilities Program.
4 (2) Intercity passenger rail and bus services.
5 (3) Community transportation capital and service
6 stabilization.
7 (4) The Welfare to Work Program and matching funds for
8 Federal programs with similar intent.
9 (5) Demonstration and research projects.
10 (6) Technical assistance.
11 (7) Other programs as determined by the department.
12 (8) The department's costs under section 1510(b)
13 (relating to program oversight and administration) and
14 section 1518 (relating to program oversight and
15 administration).
16 (b) Persons with disabilities.--The department shall
17 establish and administer a program providing reduced fares to
18 persons with disabilities on community transportation services
19 and to provide financial assistance for start-up, administrative
20 and capital expenses related to reduced fares for persons with
21 disabilities. All of the following shall apply:
22 (1) A community transportation system operating in the
23 Commonwealth other than in counties of the first and second
24 class may apply for financial assistance under this
25 subsection.
26 (2) The department may award financial assistance under
27 this subsection for program start-up and for continuing
28 capital expenses to offset administrative and capital
29 expenses. For community transportation trips made by eligible
30 persons with disabilities, financial assistance may be
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1 awarded to an eligible community transportation system to
2 reimburse the system for up to 85% of the fare established
3 for the general public for each trip which is outside of a
4 fixed-route and paratransit service areas and not eligible
5 for funding from any other program or funding source. The
6 person making the trip or an approved third-party sponsor
7 shall contribute the greater of 15% of the fare established
8 for the general public or the Americans with Disabilities Act
9 complementary paratransit fare.
10 (c) Intercity transportation.--The department is authorized
11 to provide financial assistance for an efficient and coordinated
12 intercity common carrier surface transportation program,
13 consisting of both intercity passenger rail service and
14 intercity bus service transportation, with the intent of
15 sustaining strong intercity connections. All of the following
16 shall apply:
17 (1) An intercity passenger rail service provider, a
18 local transportation organization, an agency or
19 instrumentality of the Commonwealth or a transportation
20 company that provides intercity public transportation service
21 may apply for financial assistance under this subsection. The
22 department is authorized to enter into joint service
23 agreements with a railroad company, any other agency or
24 instrumentality of the Commonwealth, a Federal agency or an
25 agency or instrumentality of any other jurisdiction relating
26 to property, buildings, structures, facilities, services,
27 rates, fares, classifications, dividends, allowances or
28 charges, including charges between intercity rail passenger
29 service facilities, or rules or regulations pertaining
30 thereto, for or in connection with or incidental to
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1 transportation in whole or in part upon intercity rail
2 passenger service facilities.
3 (2) Operating assistance and capital assistance may be
4 provided for intercity bus service and intercity passenger
5 rail service as determined by the department.
6 (3) For financial assistance to a transportation
7 company, eligible matching funds shall consist only of cash
8 income generated by the transportation company from its
9 activities, other than the provision of subsidized public
10 passenger transportation service, and contributed by the
11 transportation company in the amount and for the time period
12 specified in the financial assistance agreement.
13 (4) Local match requirements are as follows:
14 (i) For intercity bus service operating and capital
15 assistance, financial assistance shall require a local
16 match by local or private cash funding in an amount equal
17 to at least 100% of the amount of the financial
18 assistance being provided.
19 (ii) For intercity passenger rail service operating
20 and capital assistance, financial assistance shall
21 require a local match on a case-by-case basis, taking
22 into account the best interests of the Commonwealth.
23 (5) For purposes of this subsection, "local match" is
24 defined as local revenue obtained from other nonsubsidized
25 services, such as charter, school bus or profits realized
26 from other intercity bus services. Local match shall not
27 include any funds received from Federal or State sources.
28 (d) Community transportation.--
29 (1) The department is authorized to provide financial
30 assistance under this section for all of the following:
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1 (i) Capital expenditures for the provision of
2 community transportation service; and
3 (ii) service stabilization, including:
4 (A) Stabilizing current service and fares.
5 (B) Providing advice or technical assistance to
6 analyze and enhance community transportation system
7 resources and services.
8 (C) Maximizing available funding including
9 Federal dollars.
10 (D) Ensuring equitable cost sharing.
11 (2) Subject to the limitations of this subsection, the
12 following may apply for financial assistance under this
13 subsection:
14 (i) The governing body of a county, other than a
15 county of the first or second class.
16 (ii) A transportation company designated by the
17 governing body of the county as the coordinator of
18 community transportation service.
19 (iii) An agency or instrumentality of the
20 Commonwealth.
21 (2.1) Each eligible applicant shall be subject to all of
22 the following requirements:
23 (i) An applicant for financial assistance for
24 capital expenditures for the provision of public
25 community transportation service shall certify to the
26 department that it has taken all reasonable steps to
27 coordinate local service for the elderly and persons with
28 disabilities and that the services to be offered with the
29 capital assets do not duplicate existing fixed-route
30 services.
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1 (ii) The governing body of a county or the
2 coordinator described under this paragraph shall not be
3 eligible for financial assistance for service
4 stabilization if any of the following apply:
5 (A) The coordinator receives financial
6 assistance under the operating program established
7 under this chapter.
8 (B) The coordinator is a private for-profit
9 provider.
10 (3) Financial assistance for service stabilization may
11 only be provided for the following purposes:
12 (i) Short-term, long-term and strategic planning.
13 (ii) Technology investment.
14 (iii) Training programs designed to enhance
15 transportation management and staff expertise.
16 (iv) Offsetting operating expenses that cannot be
17 covered by fare revenue due to emergencies.
18 (v) Marketing activities.
19 (vi) Other stabilization purposes approved by the
20 department.
21 (4) The department shall give high priority to providing
22 financial assistance under this subsection as match for
23 Federal funding to support capital projects for community
24 transportation systems.
25 (5) The department shall conduct a study to evaluate the
26 effectiveness and efficiency of community transportation
27 service delivery as it relates to human service programs. The
28 Department of Public Welfare, the Office of the Budget and
29 the Department of Aging and other appropriate Commonwealth
30 agencies identified by the department shall participate in
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1 the study. Within two years following the effective date of
2 this section, these agencies shall make recommendations to
3 the Governor and the Majority and Minority chairpersons of
4 the Transportation Committee of the Senate and the Majority
5 and Minority chairpersons of the Transportation Committee of
6 the House of Representatives for improving coordination and
7 efficiency of human services and community transportation.
8 (d.1) Welfare-to-work and Federal programs match.--The
9 department is authorized to provide financial assistance under
10 this section to design and implement projects and services and
11 to reimburse award recipients for the expenses associated with
12 the projects and services that identify and address public
13 passenger transportation and related barriers preventing
14 individuals eligible for participation in the Federal welfare-
15 to-work program from securing and maintaining employment and
16 from accessing community services and facilities. All of the
17 following shall apply:
18 (1) A local transportation organization, a
19 transportation company designated by a county as the
20 coordinator of community transportation services or any other
21 person approved by the department may apply to the department
22 for financial assistance under this subsection.
23 (2) Financial assistance awarded under this subsection
24 shall be used for any of the following purposes:
25 (i) Fixed-route service subsidy.
26 (ii) Contracted transportation services.
27 (iii) Fixed-route fare discounts.
28 (iv) Community transportation fare discounts.
29 (v) Taxi fare discounts.
30 (vi) Mileage reimbursement.
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1 (vii) Vehicle purchase, insurance, maintenance and
2 repair.
3 (viii) Driver education classes.
4 (ix) Administrative expenses.
5 (x) Case management expenses.
6 (xi) Any other activities consistent with the
7 transportation related elements of the welfare-to-work
8 program.
9 (3) The department shall give high priority to providing
10 financial assistance under this subsection as match for
11 Federal funding to support projects with similar purposes and
12 eligible uses, including the Federal Job Access Reverse
13 Commute and New Freedoms programs.
14 (e) Technical assistance and demonstration.--The department
15 is authorized to provide financial assistance under this section
16 for technical assistance, research and short-term demonstration
17 projects. All of the following shall apply:
18 (1) A local transportation organization or an agency or
19 instrumentality of the Commonwealth may apply to the
20 department for financial assistance under this subsection.
21 (2) Financial assistance provided under this subsection
22 may be used for reimbursement for any approved operating or
23 capital costs related to technical assistance and
24 demonstration program projects. Financial assistance for
25 short-term demonstration projects may be provided at the
26 department's discretion on an annual basis based on the level
27 of financial commitment provided by the award recipient to
28 provide ongoing future funding for the project as soon as the
29 project meets the criteria established by the department and
30 the award recipient. Financial assistance for this purpose
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1 shall not be provided for more than three fiscal years.
2 Financial assistance may be provided to meet any short-term
3 emergency need that requires immediate attention and cannot
4 be funded through other sources.
5 (3) Financial assistance under this subsection provided
6 to a local transportation organization shall be matched by
7 local or private cash funding in an amount not less than
8 3.33% of the amount of the financial assistance being
9 provided. The sources of funds for the local match shall be
10 subject to the requirements of section 1513(d)(3) (relating
11 to operating program).
12 § 1517. Capital improvements program.
13 (a) Eligibility.--A local transportation organization may
14 apply for financial assistance under this section.
15 (b) Applications.--The department shall establish the
16 contents of the application for the program established under
17 this section. The information shall be in addition to
18 information required under section 1507 (relating to application
19 and approval process).
20 (c) Distribution formula.--The department shall award
21 financial assistance under this section based on the number of
22 passengers. The actual amount awarded to a local transportation
23 organization under this subsection shall be calculated as
24 follows:
25 (1) Multiply the local transportation organization's
26 passengers by the total amount of funding available under
27 this section.
28 (2) Divide the product under paragraph (1) by the sum of
29 the passengers for all qualifying local transportation
30 organizations.
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1 (d) Payments.--Financial assistance under this section shall
2 be paid to local transportation organizations at least
3 quarterly.
4 (e) Reduction in financial assistance.--Financial assistance
5 provided to a local transportation organization under this
6 section shall be reduced by any financial assistance received
7 previously under this section which has not been spent or
8 committed in a contract within three years of its receipt.
9 § 1518. Program oversight and administration.
10 The department is authorized to use available money in the
11 fund to cover the costs incurred by the department in
12 administering all of its public passenger transportation funding
13 programs, including those established under this chapter, and
14 incurred in the carrying out of its responsibilities with
15 respect to the programs.
16 § 1519. Retroactive authority.
17 (a) Date of project.--Financial assistance may be awarded
18 under this chapter by the department with reference to an
19 appropriate project irrespective of when it was first commenced
20 or considered and regardless of whether costs with respect to
21 the project were incurred prior to the time the financial
22 assistance is applied for or provided.
23 (b) Capital projects.--
24 (1) For capital projects, the applicant must obtain
25 written approval from the department prior to incurring any
26 expenses for which the applicant may later seek
27 reimbursement.
28 (2) Notwithstanding paragraph (1), approval by the
29 department shall not constitute an approval of the
30 applicant's underlying request for financial assistance.
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1 (3) By providing preapproval under this subsection, the
2 department may recognize any local funds already expended as
3 satisfying the local match requirement if and when the
4 applicant's application is approved.
5 § 1520. Evaluation of private investment opportunities.
6 (a) Study.--A local transportation organization receiving
7 funding in an amount greater than $5,000,000 annually under this
8 chapter shall undertake a study to evaluate the feasibility of
9 utilizing partnerships with private service providers and
10 financial partners as a method to operate and finance new or
11 existing services. Within one year following the effective date
12 of this section, each local transportation organization required
13 to evaluate private participation under this section shall
14 submit a report to the secretary and the majority chairperson
15 and minority chairperson of the Transportation Committee of the
16 Senate and the majority chairperson and minority chairperson of
17 the Transportation Committee of the House of Representatives.
18 (b) Report.--The report shall, at a minimum, include the
19 results of the evaluation, a determination of the viability of
20 greater private partnering and any recommendations about how to
21 achieve greater participation from the private sector.
22 (c) Preclusion.--Nothing in this section shall preclude a
23 local transportation organization receiving less than $5,000,000
24 annually under this chapter from making an evaluation of greater
25 private involvement in their operations.
26 CHAPTER 81
27 TURNPIKE
28 § 8101. Scope of chapter.
29 This chapter relates to turnpike organization, extension and
30 toll road conversion.
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1 § 8102. Definitions.
2 The following words and phrases when used in this chapter
3 shall have the meanings given to them in this section unless the
4 context clearly indicates otherwise:
5 "Commission." The Pennsylvania Turnpike Commission.
6 "Cost of the department." The term includes the costs of all
7 of the following:
8 (1) Constructing, reconstructing, widening, expanding or
9 extending the State highway and rural State highway system
10 and connecting roads, tunnels and bridges.
11 (2) Systems of public passenger transportation or
12 portions of the systems, the placing of the systems in
13 operation and the condemnation of property necessary for
14 construction and operation of the systems.
15 (3) Lands, property rights, rights-of-way, easements and
16 franchises acquired, which are deemed necessary or convenient
17 for the construction, reconstruction, widening, expanding or
18 extending under paragraph (1) or (2).
19 (4) Machinery and equipment, financing charges, interest
20 prior to and during construction and for one year after
21 completion of construction.
22 (5) Any of the following:
23 (i) Traffic estimates, engineering and legal
24 expenses, plans, specifications, surveys, estimates of
25 cost and of revenues.
26 (ii) Other expenses necessary or incident to
27 determining the feasibility or practicability of the
28 enterprise. This subparagraph includes administrative and
29 legal expenses.
30 (iii) Other expenses as may be necessary or incident
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1 to the financing authorized under this chapter, the
2 construction, reconstruction, widening, expanding or
3 extending of the State highway and the rural State
4 highway system and connecting roads, tunnels and bridges.
5 (6) Any obligation or expense contracted for by the
6 department or with the United States or an agency of the
7 United States, for traffic surveys, preparation of plans and
8 specifications, supervision of construction and other
9 engineering, administrative and legal services and expenses
10 in connection with the construction, reconstruction,
11 widening, expanding or extending of the State highway and
12 rural State highway system or any of the connecting roads,
13 tunnels and bridges or the costs of the systems of public
14 passenger transportation or portions of the systems.
15 (7) Payment of any notes or other obligations if the
16 notes or other obligations were issued for the payment of a
17 cost of the department.
18 "Cost of the turnpikes." The term includes the cost of:
19 (1) Constructing, reconstructing, widening, expanding or
20 extending turnpikes, connecting roads, storm water management
21 systems, buildings, interchanges, slip ramps, tunnels and
22 bridges.
23 (2) Lands, property rights, rights-of-way, easements and
24 franchises acquired by purchase or other means deemed
25 necessary or convenient for construction.
26 (3) Machinery and equipment, financing charges and
27 interest.
28 (4) Traffic estimates, engineering and legal expenses,
29 plans, specifications, surveys, cost and revenue estimates,
30 other expenses necessary or incident to determining the
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1 feasibility or practicability of the enterprise,
2 administrative and legal expense and other expenses as may be
3 necessary or incident to the financing authorized in this
4 chapter.
5 (5) Condemnation or other means of acquisition of
6 property necessary for the construction and operation of the
7 turnpikes.
8 (6) An obligation or expense contracted for by the
9 commission with the department or with the United States or a
10 Federal agency for any of the following:
11 (i) Traffic surveys, preparation of plans and
12 specifications, supervision of construction and other
13 engineering and administrative and legal services and
14 expenses in connection with the construction,
15 reconstruction, widening, expansion or extension of the
16 turnpike or any of the connecting roads, storm water
17 management systems, interchanges, slip ramps, tunnels and
18 bridges.
19 (ii) Costs of reimbursing the Federal Government
20 pursuant to the mandates of the Federal law for Federal
21 funds expended for interstate or other highways which are
22 to be made part of the turnpike system pursuant to this
23 chapter.
24 (7) Any portion of the scheduled annual commission
25 contribution required to be paid by the commission under 75
26 Pa.C.S. Ch. 89 (relating to Pennsylvania Turnpike).
27 "Department." The Department of Transportation of the
28 Commonwealth.
29 "Electronic toll collection." A system of collecting tolls
30 or charges that is capable of charging an account holder for the
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1 prescribed toll by electronic transmission of information
2 between a device on a vehicle and a device in a toll lane at a
3 toll collection facility.
4 "Lessee." A person, corporation, firm, partnership, agency,
5 association or organization that rents, leases or contracts for
6 the use of a vehicle and has exclusive use of the vehicle for
7 any period of time.
8 "Lessor." A person, corporation, firm, partnership, agency,
9 association or organization engaged in the business of renting
10 or leasing vehicles to any lessee under a rental agreement,
11 lease or other agreement under which the lessee has the
12 exclusive use of the vehicle for any period of time.
13 "Operator." An individual that uses or operates a vehicle
14 with or without permission of the owner.
15 "Owner." Except as provided under section 8117(e) (relating
16 to electronic toll collection), an individual, copartnership,
17 association or corporation having title or interest in a
18 property right, easement or franchise authorized to be acquired
19 under this chapter.
20 "Public passenger transportation." Transportation within an
21 area that includes a municipality or other built up place that
22 is appropriate in the judgment of the Department of
23 Transportation to serve commuters or others in the locality
24 taking into consideration the local patterns and trends of
25 growth by bus or rail or other conveyance, either publicly or
26 privately owned, serving the general public. The term does not
27 include school buses, charter or sightseeing services.
28 "Rural State highway system." All roads and highways taken
29 over by the Commonwealth as State highways under the provisions
30 of the act of June 22, 1931 (P.L.594, No.203), referred to as
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1 the Township State Highway Law, and all other roads and highways
2 specifically designated by the Secretary of the Commonwealth as
3 rural State highways.
4 "Secretary." The Secretary of Transportation of the
5 Commonwealth.
6 "State highway." All roads and highways taken over by the
7 Commonwealth as State highways under the provisions of any
8 statute other than the act of June 22, 1931 (P.L.594, No.203),
9 referred to as the Township State Highway Law. Unless clearly
10 intended, the term shall not include any street in any city,
11 borough or incorporated town, even though the street may have
12 been taken over as a State highway.
13 "System of public passenger transportation." A system of
14 public passenger transportation, including rail transportation
15 facilities used for public passenger transportation, which may
16 include the any of following:
17 (1) Railway, street railway, subway, elevated and
18 monorail passenger or passenger and rail rolling stock,
19 including self-propelled and gallery cars, locomotives,
20 passenger buses and wires, poles and equipment for the
21 electrification of any of the rails, tracks and roadbeds,
22 guideways, elevated structures, buildings, stations,
23 terminals, docks, shelters and parking areas for use in
24 connection with the rail transportation systems,
25 interconnecting lines and tunnels to provide passenger or
26 passenger and rail service connections between transportation
27 systems, transportation routes, corridors and rights-of-way
28 therefor, but not for public highways.
29 (2) Signal and communication systems necessary or
30 desirable for the construction, operation or improvement of a
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1 public passenger transportation system.
2 (3) Any improvement or overhaul of any vehicle equipment
3 or furnishings of any of the items specified under paragraphs
4 (1) and (2) or any part or fractional and undivided co-
5 ownership or leasehold interest in any one or combination of
6 any of the items specified under paragraphs (1) and (2) that
7 may be designated as a system of public passenger
8 transportation by the Secretary of Transportation.
9 "Toll road conversion." The inclusion within the turnpike
10 system and the imposition of tolls on the system of a highway
11 that is presently toll free.
12 "Turnpikes." Any of the following:
13 (1) The turnpike, turnpike extensions and turnpike
14 improvements.
15 (2) Toll-free roads converted or to be converted to toll
16 roads under this chapter.
17 (3) Related storm water management systems,
18 interchanges, slip ramps, tunnels and bridges, property
19 rights, easements and franchises deemed necessary or
20 convenient for the construction, reconstruction, widening,
21 expansion, extension or the operation of the turnpike,
22 turnpike extension, turnpike improvement and toll-free roads.
23 "Vehicle." The term as it is defined under 75 Pa.C.S. § 102
24 (relating to definitions).
25 "Violation enforcement system." A vehicle sensor, placed in
26 a location to work in conjunction with a toll collection
27 facility, which automatically produces a videotape or
28 photograph, microphotograph or other recorded image of the rear
29 portion of each vehicle at the time the vehicle is used or
30 operated in violation of the toll collection regulations. The
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1 term includes any other technology which identifies a vehicle by
2 photographic, electronic or other method.
3 § 8103. (Reserved).
4 § 8104. Status of turnpike revenue bonds, notes or other
5 obligations.
6 (a) General rule.--The turnpike revenue bonds, notes or
7 other obligations issued under the provisions of this chapter
8 shall not be deemed to be a debt of the Commonwealth or a pledge
9 of the faith and credit of the Commonwealth, but bonds, notes or
10 other obligations shall be payable solely from the revenues of
11 the commission, including tolls, or from funds as may be
12 available to the commission for that purpose.
13 (b) Statement required.--All bonds, notes or other
14 obligations shall contain a statement on their face that the
15 Commonwealth is not obligated to pay the same or the interest
16 thereon except from revenues of the commission, including tolls,
17 or from funds as may be available to the commission for that
18 purpose and that the faith and credit of the Commonwealth is not
19 pledged to the payment of the principal or interest of the
20 bonds, notes or other obligations.
21 (c) Pledge of Commonwealth prohibited.--The issuance of
22 turnpike revenue bonds, notes or other obligations under the
23 provisions of this chapter shall not directly or indirectly or
24 contingently obligate the Commonwealth to levy or to pledge any
25 form of taxation or to make any appropriation for their payment.
26 § 8105. Commission.
27 (a) (Reserved).
28 (b) Vacancies and terms.--
29 (1) Notwithstanding any other law, any vacancy in the
30 membership of the commission shall be filled by appointment
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1 of the Governor by and with the advice and consent of two-
2 thirds of the members elected to the Senate.
3 (2) The appointed member shall serve for a term of four
4 years. Upon the expiration of this term, the appointed member
5 may continue to hold office until his successor shall be duly
6 appointed and qualified.
7 (c) (Reserved).
8 (d) Secretary.--The provisions of subsection (a) shall not
9 apply to the appointment of the secretary who shall continue to
10 be appointed and to serve as a member of the commission ex
11 officio in accordance with law.
12 (e) Chairman.--A majority of the members of the commission
13 shall elect a member of the commission to serve as chairman.
14 Upon the appointment and qualification of any new member to
15 serve on the commission, the office of chairman, and the
16 positions of all other officers created by law, shall be deemed
17 vacant, and a new chairman and other officers shall be elected
18 by a majority of the members of the commission.
19 (f) Actions by the commission.--Notwithstanding any other
20 law, court decision, precedent or practice to the contrary, any
21 and all actions by or on behalf of the commission shall be taken
22 solely upon the approval of a majority of the members to the
23 commission. The term "actions by or on behalf of the
24 commission," as used in this subsection, means any action
25 whatsoever of the commission, including, but not limited to, the
26 hiring, appointment, removal, transfer, promotion or demotion of
27 any officers and employees; the retention, use or remuneration
28 of any advisors, counsel, auditors, architects, engineers or
29 consultants; the initiation of any legal action; the making of
30 any contracts, leases, agreements, bonds, notes or covenants;
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1 the approval of requisitions, purchase orders, investments and
2 reinvestments; and the adoption, amendment, revision or
3 rescission of any rules and regulations, orders or other
4 directives. The chairman, vice chairman or any other officer or
5 employee of the commission may take no action by or on behalf of
6 the commission except as expressly authorized by a majority of
7 the members of the commission.
8 (g) Compensation.--The annual salary of the Chairman of the
9 Pennsylvania Turnpike Commission shall be $28,500, and the
10 annual salary of the remaining members of the Pennsylvania
11 Turnpike Commission shall be $26,000. These salaries shall be
12 paid in equal installments every other week.
13 § 8106. Exercise of commission powers.
14 The exercise by the commission of the powers conferred by
15 this chapter in the construction, operation and maintenance of
16 the turnpikes and in effecting toll road conversions shall be
17 deemed and held to be an essential governmental function of the
18 Commonwealth.
19 § 8107. Commission powers and duties.
20 (a) Powers and duties of commission.--The commission may:
21 (1) Maintain a principal office at a place designated by
22 the commission.
23 (2) Contract and be contracted with in its own name.
24 (3) Sue and be sued in its own name, plead and be
25 impleaded. Any civil action against the commission shall be
26 brought only in the courts in which actions may be brought
27 against the Commonwealth.
28 (4) Have an official seal.
29 (5) Make necessary rules and regulations for its own
30 governance and in control of traffic.
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1 (6) Acquire, hold, accept, own, use, hire, lease,
2 exchange, operate and dispose of personal property, real
3 property and interests in real property and make and enter
4 into all contracts and agreements necessary or incidental to
5 the performance of its duties and the execution of its powers
6 under this chapter and employ engineering, traffic,
7 architectural and construction experts and inspectors,
8 attorneys and other employees as may in its judgment be
9 necessary and fix their compensation.
10 (7) Provide grade separations at its own expense with
11 respect to all public roads, State highways and interstate
12 highways intersected by the turnpikes and to change and
13 adjust the lines and grades thereof so as to accommodate the
14 same to the design for grade separation.
15 (i) The damages incurred in changing and adjusting
16 the lines and grades of public roads, State highways and
17 interstate highways shall be ascertained and paid by the
18 commission in accordance with 26 Pa.C.S. (relating to
19 eminent domain).
20 (ii) If the commission shall find it necessary to
21 provide a grade separation or change the site of any
22 portion of any interstate highway, State highway or
23 public road, or vacate the same, the commission shall
24 cause it to be reconstructed and restored at the
25 commission's expense on the most favorable location and
26 in as satisfactory a manner as the original road or
27 vacate it as the case may be.
28 (iii) The method of acquiring the right-of-way and
29 determining damages incurred in changing the location of
30 or vacating the road, State highway or interstate highway
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1 shall be ascertained and paid for in accordance with 26
2 Pa.C.S.
3 (8) Petition the court of common pleas of the county in
4 which any public road or part thereof is located and affected
5 by the location of the turnpikes, for the vacation,
6 relocation or supply of the same or any part thereof with the
7 same force and effect as is now given by existing laws to the
8 inhabitants of any township or the county, and the
9 proceedings upon petition, whether for the appointment of
10 viewers or otherwise, shall be the same as provided by
11 existing law for similar proceedings upon the petitions.
12 (9) Negotiate and enter into interest rate swaps and
13 other interest rate hedges to assist the commission in
14 managing interest cost and rate risk in connection with its
15 debt.
16 (10) Provide for costs of the department.
17 (11) Have all of the powers and perform all the duties
18 prescribed by the act of May 21, 1937 (P.L.774, No.211),
19 referred to as the Pennsylvania Turnpike Commission Act.
20 (b) Maintenance to be paid out of tolls.--
21 (1) The turnpike extensions and improvements and toll-
22 free roads converted to toll roads when completed and open to
23 traffic shall be maintained and repaired by and under the
24 control of the commission.
25 (2) All charges and costs for the maintenance and
26 repairs actually expended by the commission shall be paid out
27 of tolls.
28 (3) The turnpike, the turnpike extensions and
29 improvements and the toll-free roads converted to toll roads
30 shall also be policed and operated by a force of police, toll
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1 takers and other operating employees as the commission may in
2 its discretion employ.
3 § 8108. Expenses and bonding of commission members.
4 (a) Payment of expenses.--All compensation and salaries and
5 all expenses incurred in carrying out the provisions of this
6 chapter shall be paid solely from funds provided under the
7 authority of this chapter, and no liability or obligation shall
8 be incurred under this chapter beyond the extent to which money
9 shall have been provided under the authority of this chapter.
10 (b) No additional bond required.--The issuance of any
11 turnpike revenue bonds, notes or other obligations under the
12 provisions of this chapter shall not cause any member of the
13 commission to be required to execute a bond that a member of the
14 commission is not otherwise required to execute.
15 § 8109. Acquisition of property rights by commission.
16 (a) Condemnation.--The commission may condemn, pursuant to
17 26 Pa.C.S. (relating to eminent domain), any lands, interests in
18 lands, property rights, rights-of-way, franchises, easements and
19 other property deemed necessary or convenient for the
20 construction and efficient operation of the turnpikes and the
21 toll road conversions or necessary in the restoration or
22 relocation of public or private property damaged or destroyed.
23 (b) Purchase.--
24 (1) The commission may acquire by purchase, whenever it
25 shall deem the purchase expedient, or otherwise accept if
26 dedicated to it, any lands, interests in lands, property
27 rights, rights-of-way, franchises, easements and other
28 property deemed necessary or convenient for the construction
29 and efficient operation of the turnpikes and toll road
30 conversions or necessary in the restoration of public or
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1 private property damaged or destroyed, whether the property
2 has been previously condemned or otherwise, upon terms and at
3 a price as may be considered by the commission to be
4 reasonable and can be agreed upon between the commission and
5 the owner thereof and to take title thereto in the name of
6 the commission.
7 (2) The net proceeds of the purchase price payable to a
8 municipality or the department for any real property or
9 interest therein obtained by the commission pursuant to this
10 chapter, less the cost of retiring any bonded indebtedness on
11 the property or interest, shall be used exclusively, in the
12 case of a municipality, for road-related and bridge-related
13 expenses and, in the case of the department, for highway and
14 bridge construction, reconstruction and maintenance in the
15 same engineering and maintenance district in which the
16 property is located.
17 § 8110. Procedural requirements of acquisition.
18 (a) Title.--Title to any property condemned by the
19 commission shall be taken in the name of the commission.
20 (b) Entry.--
21 (1) In addition to any others powers set forth in this
22 chapter, the commission and its authorized agents and
23 employees may enter upon any lands, waters and premises in
24 this Commonwealth for the purpose of making surveys,
25 soundings, drillings and examinations, as it may deem
26 necessary or convenient for the purpose of this chapter.
27 (2) The entry shall not be deemed a trespass, nor shall
28 an entry for the purposes be deemed an entry under any
29 condemnation proceedings which may be then pending.
30 (3) The commission shall make reimbursement for any
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1 actual damages resulting to the lands, waters and premises as
2 a result of the activities.
3 (c) Restoration of property.--Any public or private property
4 damaged or destroyed in carrying out the powers granted by this
5 chapter shall be restored or repaired and placed in its original
6 condition as nearly as practicable or adequate compensation made
7 for the property out of funds provided under the authority of
8 this chapter.
9 (d) Powers of public bodies.--Notwithstanding any other
10 provision of law to the contrary, a political subdivision or a
11 public agency or commission of the Commonwealth may lease, lend,
12 dedicate, grant, convey or otherwise transfer to the commission,
13 upon its request, upon terms and conditions as the proper
14 authorities of the political subdivision or public agency or
15 commission of the Commonwealth deems reasonable and fair and
16 without the necessity for any advertisement, order of court or
17 other action or formality, other than the regular and formal
18 action of the authorities concerned, any real property which may
19 be necessary or convenient to the effectuation of the authorized
20 purposes of the commission, including public roads and other
21 real property already devoted to public use.
22 § 8111. Entry and possession of property condemned.
23 Whenever the commission has condemned any lands, rights,
24 rights-of-way, easements and franchises, or interests therein,
25 as provided in this chapter, the commission may proceed to
26 obtain possession in the manner provided by 26 Pa.C.S. (relating
27 to the eminent domain).
28 § 8112. Issuance of turnpike revenue bonds or other
29 obligations.
30 (a) Authorization.--
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1 (1) A bond must be authorized by resolution of the
2 commission. The resolution may specify all of the following:
3 (i) Series.
4 (ii) Date of maturity not exceeding 40 years from
5 date of issue.
6 (iii) Interest.
7 (iv) Denomination.
8 (v) Form, either coupon or fully registered without
9 coupons.
10 (vi) Registration, exchangeability and
11 interchangeability privileges.
12 (vii) Medium of payment and place of payment.
13 (viii) Terms of redemption not exceeding 105% of the
14 principal amount of the bond.
15 (ix) Priorities in the revenues or receipts of the
16 commission.
17 (2) A bond must be signed by or shall bear the facsimile
18 signature of such officers as the commission determines. A
19 bond may be issued and delivered notwithstanding that one or
20 more of the signing officers or the treasurer has ceased to
21 be an officer when the bond is actually delivered. A bond
22 must be authenticated by an authenticating agent, a fiscal
23 agent or a trustee, if required by the authorizing
24 resolution.
25 (3) A bond may be sold at public or private sale for a
26 price determined by the commission.
27 (4) Pending the preparation of a definitive bond,
28 interim receipts or temporary bonds without coupons may be
29 issued to the purchaser and may contain terms and conditions
30 as the commission determines.
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1 (b) Provisions.--A resolution authorizing a bond may contain
2 provisions which shall be part of the contract with the
3 bondholder as to the following:
4 (1) Pledging the full faith and credit of the commission
5 but not of the Commonwealth or any political subdivision for
6 the bond or restricting the obligation of the commission to
7 all or any of the revenue of the commission from all or any
8 projects or properties.
9 (2) The payment of the costs of the department, the
10 costs of the turnpikes and the toll road conversions,
11 including the reconstruction of the converted roads as
12 provided for in this chapter and the repayment to the Federal
13 Treasury of any funds so required to be repaid pursuant to
14 any special legislation passed by the Congress of the United
15 States authorizing the conversion of toll-free roads to toll
16 roads, the financing for insurance reserves and the duties of
17 the commission with reference to these matters.
18 (3) Terms and provisions of the bond.
19 (4) Limitations on the purposes to which the proceeds of
20 the bond or other financing may be applied.
21 (5) Rate of tolls and other charges for use of the
22 facilities of or for the services rendered by the commission.
23 (6) The setting aside, regulation and disposition of
24 reserves and sinking funds.
25 (7) Limitations on the issuance of additional bonds.
26 (8) Terms and provisions of any deed of trust or
27 indenture securing the bond or under which any deed of trust
28 or indenture may be issued.
29 (9) Other additional agreements with the holder of the
30 bond.
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1 (c) Deeds of trust.--The commission may enter into any deed
2 of trust, indenture or other agreement with any bank or trust
3 company or other person in the United States having power to
4 enter into such an arrangement, including any Federal agency, as
5 security for a bond and may assign and pledge all or any of the
6 revenues or receipts of the commission under such deed,
7 indenture or agreement. The deed of trust, indenture or other
8 agreement may contain provisions as may be customary in such
9 instruments or as the commission may authorize, including
10 provisions as to the following:
11 (1) For the payment of the costs of the department, the
12 costs of the turnpikes and the toll road conversions,
13 including the reconstruction of the converted roads as
14 provided for in this chapter and the repayment to the Federal
15 Treasury of any funds so required to be repaid pursuant to
16 any special legislation passed by the Congress of the United
17 States authorizing the conversion of toll-free roads to toll
18 roads, financing for insurance reserves and the duties of the
19 commission with reference to these matters.
20 (2) Application of funds and the safeguarding of funds
21 on hand or on deposit.
22 (3) Rights and remedies of trustees and bondholders,
23 including restrictions upon the individual right of action of
24 a bondholder.
25 (4) Terms and provisions of the bond or the resolution
26 authorizing the issuance of the bond.
27 (d) Negotiability.--A bond shall have all the qualities of
28 negotiable instruments under 13 Pa.C.S. Div. 3 (relating to
29 negotiable instruments).
30 § 8113. Obligation proceeds restricted and lien created.
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1 All money received from any bonds, notes or other obligations
2 issued under this chapter shall be applied solely to the payment
3 of the costs of the department, the costs of the turnpikes, the
4 turnpike extensions and improvements and the toll road
5 conversions, including the reconstruction of the converted roads
6 as provided for in this chapter and the repayment to the Federal
7 Treasury of any funds so required to be repaid pursuant to any
8 special legislation passed by the Congress of the United States
9 authorizing the conversion of toll-free roads to toll roads or
10 to the appurtenant fund. There is created and granted a lien
11 upon the money, until so applied, in favor of holders of the
12 bonds, notes or other obligations or the trustee provided for in
13 this chapter in respect of the bonds, notes or other
14 obligations.
15 § 8114. Trust indenture authorized.
16 (a) Security for bonds.--In the discretion of the
17 commission, the bonds, notes or other obligations may be secured
18 by a trust indenture by and between the commission and a
19 corporate trustee, which may be any trust company or bank having
20 the powers of a trust company, within this Commonwealth. The
21 trust indenture may pledge or assign tolls and revenue to be
22 received but shall not convey or mortgage the Pennsylvania
23 Turnpike System, including the turnpikes and toll road
24 conversions provided for by this chapter.
25 (b) Rights of bondholders.--Either the resolution providing
26 for the issuance of the bonds, notes or other obligations or the
27 trust indenture may contain provisions for protecting and
28 enforcing the rights and remedies of the bondholders or holders
29 of notes or other obligations as may be reasonable and proper
30 and not in violation of law, including covenants setting forth
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1 the duties of the commission in relation to the acquisition of
2 properties and the construction, maintenance, operation and
3 repair and insurance of the turnpikes, and the custody,
4 safeguarding and application of all money. It shall be lawful
5 for any bank or trust company incorporated under the laws of
6 this Commonwealth to act as a depository of the proceeds of
7 bonds, notes or other obligations or revenues and to furnish the
8 indemnity bonds or to pledge the securities as may be required
9 by the commission. The trust indenture may set forth the rights
10 and remedies of the bondholders or holders of notes or other
11 obligations and of the trustee and may restrict the individual
12 right of action of bondholders or holders of notes or other
13 obligations as is customary in trust indentures securing bonds,
14 debentures of corporations, notes or other obligations. In
15 addition to the foregoing, the trust indenture may contain other
16 provisions as the commission may deem reasonable and proper for
17 the security of bondholders or holders of notes or other
18 obligations. All expenses incurred in carrying out the trust
19 indenture may be treated as part of the cost of maintenance,
20 operation and repair of the turnpikes and toll road conversions
21 provided for by this chapter.
22 § 8115. Commission and obligations tax exempt.
23 The accomplishment by the commission of the authorized
24 purposes stated in this chapter being for the benefit of the
25 people of this Commonwealth and for the improvement of their
26 commerce and prosperity, in which accomplishment the commission
27 will be performing essential governmental functions, the
28 commission shall not be required to pay any taxes or assessments
29 on any property acquired or used by it for the purposes provided
30 in this chapter, and the bonds, notes or other obligations
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1 issued by the commission, their transfer and the income
2 therefrom, including any profits made on the sale thereof, shall
3 at all times be free from taxation within this Commonwealth.
4 § 8116. Collection and disposition of tolls and other revenue.
5 (a) Establishment and changes in toll amounts.--Subject to
6 the terms of any trust indenture entered into by the commission
7 or any resolution authorizing the issuance of any bonds, notes
8 or other obligations of the commission, the commission is
9 authorized: to fix and to revise tolls for the use of the
10 Pennsylvania Turnpike System and the different parts or sections
11 of the system, including the turnpike, the turnpike extensions
12 and improvements and the toll road conversions authorized by
13 this chapter. The commission is further authorized to charge and
14 collect tolls; to contract with any person, partnership,
15 association or corporation desiring the use of any part thereof,
16 including the right-of-way adjoining the paved portion, for
17 placing thereon telephone, telegraph, electric light or power
18 lines, gas stations, garages, stores, hotels, restaurants and
19 advertising signs, or for any other purpose, except for service
20 plazas in the right-of-way along Interstate 80 and for tracks
21 for railroad or railway use; and to fix the terms, conditions,
22 rents and rates of charges for use. Tolls shall be fixed and
23 adjusted as to provide funds at least sufficient with other
24 revenues of the Pennsylvania Turnpike System, if any, to pay all
25 of the following:
26 (1) The cost of the turnpikes. This paragraph includes
27 the cost of constructing, reconstructing, widening,
28 expanding, extending, maintaining, repairing and operating
29 the Pennsylvania Turnpike System and the different parts and
30 sections of the system.
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1 (2) Any of the following:
2 (i) The commission's bonds, notes or other
3 obligations and the interest on them.
4 (ii) Sinking fund requirements of the commission.
5 (iii) Other requirements provided for by any
6 resolution authorizing the issuance of the bonds, notes
7 or other obligations by the commission, or by any trust
8 indenture to which the commission is a party, as they
9 become due.
10 (3) Amounts due to the department under 75 Pa.C.S. Ch.
11 89 (relating to Pennsylvania Turnpike) and pursuant to the
12 lease agreement under 75 Pa.C.S. § 8915.3 (relating to lease
13 of Interstate 80).
14 (4) The cost of repayment to the Federal Government of
15 funds required to be repaid pursuant to Federal legislation
16 authorizing the conversion of toll-free roads to toll roads.
17 (5) Any other amounts payable to the Commonwealth or to
18 the department.
19 (b) Restrictions on toll revenue.--Tolls shall not be
20 subject to supervision or regulation by any other State
21 commission, board, bureau or agency. Subject to the terms of any
22 presently existing trust indenture entered into by the
23 commission and any presently existing resolution authorizing the
24 issuance of any bonds, notes or other obligations of the
25 commission, the tolls and all other revenue derived from the
26 Pennsylvania Turnpike System shall be set aside and pledged as
27 may be provided in any resolutions, trust indentures or any
28 other agreements that the commission may hereafter adopt or
29 hereafter enter into with respect to the issuance of bonds,
30 notes or other obligations of the commission.
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1 § 8117. Electronic toll collection.
2 (a) Liability of owner.--
3 (1) If an operator of a vehicle fails to pay the
4 prescribed toll at any location where tolls are collected by
5 means of electronic toll collection, the owner of the vehicle
6 shall be liable to the commission for failure of the operator
7 of the vehicle to comply with this section if the violation
8 is evidenced by information obtained from a violation
9 enforcement system.
10 (2) If a violation of this section is committed, the
11 registration plate number of the vehicle as recorded by a
12 violation enforcement system shall establish an inference
13 that the owner of the vehicle was then operating the vehicle.
14 The inference shall be overcome if the owner does all of the
15 following:
16 (i) Testifies that the owner was not operating the
17 vehicle at the time of the violation.
18 (ii) Submits to an examination as to who at the time
19 was operating the vehicle.
20 (iii) Reveals the name and residence address, if
21 known, of the operator of the vehicle.
22 (3) If an action or proceeding is commenced in a county
23 other than that of the residence of the owner, a verified
24 written statement setting forth the facts prescribed under
25 paragraph (2)(i), (ii) and (iii) shall suffice to overcome
26 the inference.
27 (4) If the inference is overcome, the operator of the
28 vehicle may be held liable under this section for failure to
29 pay the prescribed toll in the same manner as if the operator
30 were the owner of the vehicle.
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1 (b) Imposition of liability.--Liability under this section
2 shall be imposed upon an owner for a violation of this section
3 or the regulations of the commission occurring within the
4 territorial limits of this Commonwealth. If a violation is
5 committed as evidenced by a violation enforcement system, the
6 following shall apply:
7 (1) The commission or an authorized agent or employee
8 must prepare and mail a notice of violation as follows:
9 (i) The notice of violation must be sent by first
10 class mail to each person alleged to be liable as an
11 owner for a violation of this section.
12 (ii) The notice must be mailed at the address shown
13 on the vehicle registration or at the address of the
14 operator, as applicable. Notice must be mailed no later
15 than 60 days after:
16 (A) the alleged conduct; or
17 (B) the date the inference is overcome under
18 subsection (a)(2).
19 (iii) Personal service is not required.
20 (iv) The notice must contain all of the following:
21 (A) Information advising the person charged of
22 the manner and time in which the liability alleged in
23 the notice may be contested.
24 (B) A warning advising the person charged that
25 failure to contest in the manner and time provided
26 shall be deemed an admission of liability and that a
27 default judgment may be entered on the notice.
28 (1.1) A manual or automatic record of mailing prepared
29 in the ordinary course of business shall be prima facie
30 evidence of the mailing of notice.
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1 (2) If an owner of a vehicle or an owner that is a
2 lessor of a vehicle receives a notice of violation under this
3 section for any time period during which the vehicle was
4 reported to a police department as having been stolen, it
5 shall be a defense to the allegation of liability that the
6 vehicle had been reported to the police as having been stolen
7 prior to the time the violation occurred and that the vehicle
8 had not been recovered by the time of the violation. For
9 purposes of asserting the defense under this paragraph, it
10 shall be sufficient that a certified copy of the police
11 report on the stolen vehicle be sent by first class mail to
12 the commission within 30 days after receiving the original
13 notice of violation. Failure to send the information within
14 the time limit under this paragraph shall render the owner or
15 lessor liable for the penalty prescribed by this section.
16 (3) An owner that is a lessor of a vehicle as to which a
17 notice of violation was issued under paragraph (1) shall not
18 be liable for a violation if the owner sends to the
19 commission a copy of the rental, lease or other contract
20 document covering the vehicle on the date of the violation,
21 with the name and address of the lessee clearly legible to
22 the commission, within 30 days after receiving the original
23 notice of violation. Failure to send the information within
24 the time limit under this paragraph shall render the lessor
25 liable for the penalty prescribed by this section. If the
26 lessor complies with the provisions of this section, the
27 lessee of the vehicle on the date of the violation shall be
28 deemed to be the owner of the vehicle for purposes of this
29 section and shall be subject to liability for the penalty
30 under this section.
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1 (4) A certified report or a facsimile report of an
2 authorized agent or employee of the commission reporting a
3 violation of this section or regulations of the commission
4 based upon the recorded information obtained from a violation
5 enforcement system shall be prima facie evidence of the facts
6 contained in the report and shall be admissible as an
7 official record kept in the ordinary course of business in
8 any proceeding charging a violation of this section or the
9 toll collection regulations of the commission.
10 (5) Notwithstanding any other provision of law,
11 videotapes, photographs, microphotographs, other recorded
12 images, written records, reports or facsimiles prepared
13 pursuant to this section shall be for the exclusive use of
14 the commission, its authorized agents, its employees and law
15 enforcement officials for the purpose of discharging duties
16 under this section and the regulations of the commission. The
17 information shall not be deemed a public record under the act
18 of June 21, 1957 (P.L.390, No.212), referred to as the Right-
19 to-Know Law. The information shall not be discoverable by
20 court order or otherwise; nor shall it be offered in evidence
21 in any action or proceeding which is not directly related to
22 a violation of this section, the regulations of the
23 commission or indemnification for liability imposed pursuant
24 to this section. The restrictions set forth in this
25 paragraph:
26 (i) shall not be deemed to preclude a court of
27 competent jurisdiction from issuing an order directing
28 that the information be provided to law enforcement
29 officials if the information is reasonably described and
30 is requested solely in connection with a criminal law
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1 enforcement action;
2 (ii) shall not be deemed to preclude the exchange of
3 the information between any entities with jurisdiction
4 over or which operate an electronic toll collection
5 system in this Commonwealth or any other jurisdiction;
6 and
7 (iii) shall not be deemed to prohibit the use of
8 information exclusively for the purpose of billing
9 electronic toll collection account holders, deducting
10 toll charges from the account of an account holder,
11 enforcing toll collection laws and related regulations or
12 enforcing the provisions of an account holder agreement.
13 (6) An imposition of liability under this section must
14 be based upon a preponderance of evidence.
15 (7) An imposition of liability pursuant to this section
16 shall not be deemed a conviction of an owner and shall not be
17 made part of the motor vehicle operating record of the person
18 upon whom the liability is imposed, nor shall it be
19 considered in the provision of motor vehicle insurance
20 coverage.
21 (8) An owner that admits, is found liable or fails to
22 respond to the notice of violation for a violation of this
23 section shall be civilly liable to the commission for all of
24 the following:
25 (i) Either:
26 (A) the amount of the toll evaded or attempted
27 to be evaded if the amount can be determined; or
28 (B) the maximum toll from the farthest point of
29 entry on the Pennsylvania Turnpike to the actual
30 point of exit if the amount of the toll evaded or
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1 attempted to be evaded cannot be determined.
2 (ii) A reasonable administrative fee not to exceed
3 $35 per notification.
4 (9) Nothing in this section shall be construed to limit
5 the liability of the operator of a vehicle for a violation of
6 this section or of the regulations of the commission.
7 (c) Placement of electronic toll collection device.--An
8 electronic toll collection device which is affixed to the front
9 windshield of a vehicle in accordance with the regulations of
10 the commission shall not be deemed to constitute a violation of
11 75 Pa.C.S. § 4524 (relating to windshield obstructions and
12 wipers).
13 (d) Privacy of electronic toll collection account holder
14 information.--
15 (1) Except as set forth paragraph (2), notwithstanding
16 any other provision of law, all of the following apply to
17 information kept by the commission, its authorized agents or
18 its employees which is related to the account of an
19 electronic toll collection system account holder:
20 (i) The information shall be for the exclusive use
21 of the commission, its authorized agents, its employees
22 and law enforcement officials for the purpose of
23 discharging their duties pursuant to this section and the
24 regulations of the commission. This subparagraph includes
25 names, addresses, account numbers, account balances,
26 personal financial information, vehicle movement records
27 and other information compiled from transactions with the
28 account holders.
29 (ii) The information shall not be deemed a public
30 record under the Right-to-Know Law, nor shall it be
20070H1878B2575 - 139 -
1 discoverable by court order or otherwise or be offered in
2 evidence in any action or proceeding which is not
3 directly related to the discharge of duties under this
4 section, the regulations of the commission or a violation
5 of an account holder agreement.
6 (2) Paragraph (1) shall not be deemed to do any of the
7 following:
8 (i) Preclude a court of competent jurisdiction from
9 issuing an order directing that the information be
10 provided to law enforcement officials if the information
11 is reasonably described and is requested solely in
12 connection with a criminal law enforcement action.
13 (ii) Preclude the exchange of the information
14 between any entities with jurisdiction over or which
15 operate an electronic toll collection system in this
16 Commonwealth or any other jurisdiction.
17 (iii) Prohibit the use of the information
18 exclusively for the purpose of billing electronic toll
19 collection account holders, deducting toll charges from
20 the account of an account holder, enforcing toll
21 collection laws and related regulations or enforcing the
22 provisions of an account holder agreement.
23 (e) Definition.--As used in this section, the term "owner"
24 means any person, corporation, firm, partnership, agency,
25 association, organization or lessor that, at the time a vehicle
26 is operated in violation of this section or regulations of the
27 commission:
28 (1) is the beneficial or equitable owner of the vehicle;
29 (2) has title to the vehicle; or
30 (3) is the registrant or coregistrant of the vehicle
20070H1878B2575 - 140 -
1 registered with the department or a comparable agency of
2 another jurisdiction or uses the vehicle in its vehicle
3 renting or leasing business. The term includes a person
4 entitled to the use and possession of a vehicle subject to a
5 security interest in another person.
6 § 8118. Refunding bonds.
7 The commission is authorized to provide, by resolution, for
8 the issuance of turnpike revenue refunding bonds for the purpose
9 of refunding issued and outstanding turnpike revenue bonds,
10 notes or other obligations. Applicable provisions of this
11 chapter govern all of the following:
12 (1) Issuance of the turnpike revenue refunding bonds.
13 (2) Maturities and other details of the refunding bonds.
14 (3) Rights of the holders of the bonds.
15 (4) Duties of the Commonwealth and of the commission in
16 respect to the bonds.
17 § 8119. Rights of obligation holders and trustees.
18 (a) Scope.--This section applies to all of the following:
19 (1) A holder of:
20 (i) a bond, note or other obligation issued under
21 this chapter; or
22 (ii) a coupon attached to the bond, note or other
23 obligation.
24 (2) The trustee under an applicable trust indenture.
25 (b) Enforcement.--Subject to subsection (c), a person
26 referred to in subsection (a) may, by an action at law or in
27 equity, do all of the following:
28 (1) Protect and enforce rights granted under this
29 chapter or under the resolution or trust indenture.
30 (2) Enforce and compel performance of all duties
20070H1878B2575 - 141 -
1 required by this chapter or by the resolution or trust
2 indenture to be performed by the commission or an officer of
3 the commission. This paragraph includes fixing, charging and
4 collecting of tolls for the use of the turnpikes.
5 (c) Restriction.--Rights under this chapter may be
6 restricted by resolution passed before the issuance of the bond,
7 note or other obligation or by the trust indenture.
8 § 8120. Authority granted to secretary.
9 (a) Agreement with Federal Government.--
10 (1) The secretary is authorized to enter into an
11 agreement with the United States Department of
12 Transportation, the Federal Highway Administration and any
13 other Federal agency to obtain Federal funds for projects for
14 resurfacing, restoring and rehabilitating toll roads in this
15 Commonwealth. The commission is authorized to use Federal
16 funds which may be available for toll roads only upon
17 approval of the secretary and only under the authority
18 granted under this section.
19 (2) (Reserved).
20 (b) Approval by department.--A copy of each contract and
21 agreement relating to the construction of the turnpikes and
22 connecting tunnels, bridges, slip interchanges and slip ramps
23 shall be provided to the department for review and comment prior
24 to execution of this contract or agreement.
25 § 8121. (Reserved).
26 § 8122. (Reserved).
27 § 8123. Construction of chapter.
28 This chapter shall be regarded as supplemental and additional
29 to powers conferred by other statutes and shall not be regarded
30 as in derogation of any powers now existing and shall be
20070H1878B2575 - 142 -
1 liberally construed to effect its purposes.
2 CHAPTER 82
3 TURNPIKE COMMISSION STANDARDS OF CONDUCT
4 § 8201. Scope.
5 This chapter shall apply to the Pennsylvania Turnpike
6 Commission formed or maintained under authority of the act of
7 May 21, 1937 (P.L.774, No.211), referred to as the Pennsylvania
8 Turnpike Commission Act and the former act of September 30, 1985
9 (P.L.240, No.61), known as the Turnpike Organization, Extension
10 and Toll Road Conversion Act, or any successor entity.
11 § 8202. Definitions.
12 The following words and phrases when used in this chapter
13 shall have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Business." Any corporation, partnership, sole
16 proprietorship, firm, enterprise, franchise, association,
17 organization, self-employed individual, holding company, joint
18 stock company, receivership, trust or any legal entity organized
19 for profit.
20 "Commission." The Pennsylvania Turnpike Commission.
21 "Executive-level employee." The Chief Executive Officer,
22 Chief Financial Officer, Chief Operating Officer, Chief Counsel
23 or any other senior management employee with discretionary
24 powers which may affect the outcome of a Pennsylvania Turnpike
25 Commission action or decision or who functions in press or
26 public relations, legislative liaison or development of
27 executive policy.
28 "Facility." Rest areas, service plazas, restaurants, fueling
29 stations, traffic advisory systems, call boxes or other services
30 provided by the commission to persons using toll roads or
20070H1878B2575 - 143 -
1 highways operated by the commission.
2 "Immediate family." A spouse, parent, brother, sister or
3 child.
4 "Member." A commissioner appointed to the Pennsylvania
5 Turnpike Commission, including the Secretary of Transportation,
6 and any successor entity thereto.
7 "Ownership interest." Owning or holding, or being deemed to
8 hold, debt or equity securities or other ownership interest or
9 profit interest.
10 "Party officer." A member of a national committee of a
11 political party; a chairman, vice chairman, secretary, treasurer
12 or counsel of a State committee or member of the executive
13 committee of a State committee of a political party; or a county
14 chairman, vice chairman, counsel, secretary or treasurer of a
15 county committee or a city chairman, vice chairman, counsel,
16 secretary or treasurer of a city committee of a political party.
17 "Pennsylvania Turnpike Commission." An entity formed or
18 maintained under authority of the act of May 21, 1937 (P.L.774,
19 No.211), referred to as the Pennsylvania Turnpike Commission
20 Act, and the act of September 30, 1985 (P.L.240, No.61), known
21 as the Turnpike Organization, Extension and Toll Road Conversion
22 Act, or any successor entity.
23 "Public official." Any official elected to a Federal, State
24 or county office.
25 § 8203. Qualifications, restrictions and duties of commission
26 members and employees.
27 (a) General rule.--The following qualifications and
28 restrictions shall apply to members and executive-level
29 employees:
30 (1) A member shall be at least 25 years of age and shall
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1 have been a resident of this Commonwealth for a period of at
2 least one year immediately preceding appointment. Each member
3 shall continue to remain a resident of this Commonwealth
4 during the term of membership on the commission.
5 (2) Except for the Secretary of Transportation, no
6 member or executive-level employee shall be a public official
7 or party officer in this Commonwealth.
8 (3) (i) No member or executive-level employee shall be
9 paid or receive any fee or other compensation other than
10 salary and expenses provided by law for any activity
11 directly pertaining to the duties of the commission.
12 (ii) Nothing in this chapter shall be construed to
13 prohibit a member or executive-level employee from
14 engaging in any employment or vocation that is not
15 incompatible with service as a member or executive-level
16 employee.
17 (4) (i) At the time of appointment and annually
18 thereafter, each member shall disclose the existence of
19 all ownership interests in any facility or business with
20 which the commission has contracted for roadway
21 construction or maintenance or services of any kind.
22 (ii) The disclosure statement shall be filed with
23 the chief executive officer of the commission and shall
24 be open to inspection by the public at the office of the
25 commission during normal business hours of the commission
26 during the tenure of the member.
27 (b) Fiduciary relationship.--Each member and executive-level
28 employee shall serve as a fiduciary of the commission.
29 § 8204. Code of conduct.
30 (a) Contents.--The commission shall adopt a comprehensive
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1 code of conduct within 90 days of the effective date of this
2 section. The code of conduct shall supplement all other
3 requirements under this chapter and shall provide guidelines
4 applicable to members and executive-level employees and the
5 immediate families of the members and executive-level employees
6 to enable them to avoid any perceived or actual conflict of
7 interest and to promote public confidence in the integrity and
8 impartiality of the commission. At a minimum, the code of
9 conduct adopted under this section shall provide that:
10 (1) No member or executive-level employee may accept any
11 discount, gift, gratuity, compensation, travel, lodging or
12 other thing of value, in excess of the limits under 65
13 Pa.C.S. § 1105(b)(6) and (7) (relating to statement of
14 financial interests) directly or indirectly, from any
15 facility or business with which the commission has a
16 contractual relationship.
17 (2) Members and executive-level employees shall refrain
18 from any financial or business dealing which would affect the
19 member's objectivity, impartiality or independence of
20 judgment.
21 (3) (i) No member or executive-level employee may use
22 the promise of business with the commission to solicit
23 funds for any charitable, educational, religious, health,
24 fraternal, civic or other nonprofit entity.
25 (ii) A member or executive-level employee may serve
26 as an officer, employee or member of the governing body
27 of a nonprofit entity and may attend, make personal
28 contributions to and plan or preside over the entity's
29 fundraising events.
30 (iii) A member or executive-level employee may
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1 permit his name to appear on the letterhead used for
2 fundraising events if the letterhead contains only the
3 member's name and position with the nonprofit entity.
4 (4) No member or executive-level employee nor the
5 immediate family of such person, shall participate in any
6 deliberations or vote of the commission in which that person
7 may have a direct or indirect pecuniary interest.
8 (5) (i) A member shall abstain from any vote or
9 decision which authorizes a contract in which the member
10 has any pecuniary interest. The member shall disclose the
11 interest in a public meeting prior to the vote or
12 decision.
13 (ii) Failure to comply with this paragraph shall
14 make the contract null and void.
15 (6) No former member or executive-level employee may
16 receive any pecuniary benefit from a contract between the
17 commission and the employer of the former member or
18 executive-level employee for a period of one year from the
19 termination of employment or service with the commission. No
20 former member or executive-level employee may solicit any
21 contracts with the commission for a period of one year from
22 the termination of employment or service with the commission.
23 (7) A member of the commission who has been convicted
24 during his term in any domestic or foreign jurisdiction of a
25 felony shall, upon conviction, be automatically removed from
26 the commission and shall be ineligible to become a commission
27 member in the future.
28 (8) No member may solicit, request, suggest or recommend
29 the employment, by either the commission or a contractor with
30 the commission, of any individual related within the first
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1 degree of consanguinity to the member as set forth in 23
2 Pa.C.S. § 1304(e) (relating to restrictions on issuance of
3 license) or the spouse of the individual.
4 (b) Audit.--
5 (1) At least once every four years, the Department of
6 the Auditor General shall review the performance, procedures,
7 operating budget, capital budget and debt of the commission
8 and shall audit the accounts of the commission.
9 (2) The Auditor General shall be entitled to go beyond
10 mere financial statements, and shall be entitled to examine
11 original source documents at such time as is believed
12 necessary or may otherwise examine original documents on a
13 random basis designed to ensure the integrity of the audit.
14 (3) The provisions of section 706(d) of the act of April
15 9, 1929 (P.L.177, No.175), known as The Administrative Code
16 of 1929, shall apply to any audit conducted under this
17 subsection.
18 § 8205. Applicability of other statutes.
19 (a) General rule.--Notwithstanding any other provision of
20 law, the following acts shall apply to the commission under this
21 chapter:
22 (1) The act of June 21, 1957 (P.L.390, No.212), referred
23 to as the Right-to-Know Law.
24 (2) The act of July 19, 1957 (P.L.1017, No.451), known
25 as the State Adverse Interest Act.
26 (3) The provisions of 65 Pa.C.S. Chs. 7 (relating to
27 open meetings) and 11 (relating to ethics standards and
28 financial disclosure).
29 (b) Status of commission.--The commission shall be
30 considered an "agency" for the purposes of the following:
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1 (1) The act of July 31, 1968 (P.L.769, No.240), referred
2 to as the Commonwealth Documents Law.
3 (2) The act of June 25, 1982 (P.L.633, No.181), known as
4 the Regulatory Review Act.]
5 Section 5. Title 74 is amended by adding a chapter to read:
6 CHAPTER 84
7 PENNSYLVANIA TURNPIKE
8 Sec.
9 8401. Scope of chapter.
10 8402. Definitions.
11 8403. (Reserved).
12 8404. Status of turnpike revenue bonds, notes or other
13 obligations.
14 8405. Pennsylvania Turnpike Commission membership,
15 compensation and term of office.
16 8406. Exercise of commission powers deemed essential
17 governmental function.
18 8407. Commission powers and duties enumerated; payment of
19 maintenance.
20 8408. Expenses and bonding of commission members.
21 8409. Acquisition of property rights by commission.
22 8410. Procedural requirements of acquisition.
23 8411. Entry and possession of property condemned.
24 8412. Issuance of turnpike revenue bonds, notes or other
25 obligations.
26 8413. Obligation proceeds restricted and lien created.
27 8414. Trust indenture authorized.
28 8415. Commission and obligations tax exempt.
29 8416. Collection and disposition of tolls and other revenue.
30 8416.1. Electronic toll collection.
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1 8417. Refunding bonds.
2 8418. Rights of obligation holders and trustees.
3 8419. Authority granted to Secretary of Transportation.
4 8420. Construction of chapter.
5 § 8401. Scope of chapter.
6 This chapter relates to turnpike organization, extension and
7 toll road conversion.
8 § 8402. Definitions.
9 The following words and phrases when used in this chapter
10 shall have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Commission." The Pennsylvania Turnpike Commission created
13 by the act of May 21, 1937 (P.L.774, No.211), referred to as the
14 Pennsylvania Turnpike Commission Act, or, if the commission
15 shall be abolished, any board, commission or officer succeeding
16 to the principal functions thereof or upon whom the power and
17 functions given by this chapter to the commission shall be given
18 by law.
19 "Cost of the turnpikes." The term includes the cost of
20 constructing the turnpikes and all connecting roads, storm water
21 management systems, tunnels and bridges; the cost of all lands,
22 property rights, rights-of-way, easements and franchises
23 acquired by purchase or other means, which are deemed necessary
24 or convenient for such construction; the cost of all machinery
25 and equipment, financing charges, interest prior to and during
26 construction and for one year after completion of construction;
27 the cost of traffic estimates and of engineering and legal
28 expenses, plans, specifications, surveys, estimates of cost and
29 of revenues, other expenses necessary or incident to determining
30 the feasibility or practicability of the enterprise,
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1 administrative and legal expense, and such other expenses as may
2 be necessary or incident to the financing herein authorized; the
3 construction of the turnpikes and connecting roads, storm water
4 management systems, tunnels and bridges, the placing of the same
5 in operation, and the condemnation or other means of acquisition
6 of property necessary for the construction and operation. Any
7 obligation or expense contracted for by the commission with the
8 Department of Transportation, or with the United States or any
9 agency thereof, for traffic surveys, preparation of plans and
10 specifications, supervision of construction, and other
11 engineering, administrative and legal services and expenses in
12 connection with the construction of the turnpike or any of the
13 connecting roads, storm water management systems, tunnels and
14 bridges, and any costs of reimbursing the Federal Government
15 pursuant to the mandates of the Federal law for Federal funds
16 expended for interstate or other highways which are to be made
17 part of the turnpike system pursuant to this chapter, shall be
18 regarded as a part of the cost of the turnpikes and shall be
19 reimbursed or paid out of the proceeds of the turnpike revenue
20 bonds, notes or other obligations hereinafter authorized.
21 Payment of any turnpike revenue bonds, notes or other
22 obligations shall be considered payment of the cost of the
23 turnpikes, provided the turnpike revenue bonds, notes or other
24 obligations were issued for such purpose.
25 "Electronic toll collection." A system of collecting tolls
26 or charges that is capable of charging an account holder for the
27 prescribed toll by electronic transmission of information
28 between a device on a vehicle and a device in a toll lane at a
29 toll collection facility.
30 "Lessee." Any person, corporation, firm, partnership,
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1 agency, association or organization that rents, leases or
2 contracts for the use of a vehicle and has exclusive use of the
3 vehicle for any period of time.
4 "Lessor." Any person, corporation, firm, partnership,
5 agency, association or organization engaged in the business of
6 renting or leasing vehicles to any lessee under a rental
7 agreement, lease or other agreement under which the lessee has
8 the exclusive use of the vehicle for any period of time.
9 "Operator." An individual that uses or operates a vehicle
10 with or without the permission of the owner.
11 "Owner." Except as provided in section 8416.1(e) (relating
12 to electronic toll collection), an individual, copartnership,
13 association or corporation having any title or interest in any
14 property rights, easements or franchises authorized to be
15 acquired by this chapter.
16 "The turnpikes." The turnpike, turnpike extensions and
17 turnpike improvements to be constructed, and the toll-free roads
18 to be converted to toll roads, as provided for in this chapter.
19 The phrase shall be deemed to include not only the turnpikes and
20 all connecting roads, storm water management systems, tunnels
21 and bridges connected therewith, but also all property rights,
22 easements and franchises relating thereto and deemed necessary
23 or convenient for the construction or the operation thereof,
24 which may also be referred to as constituting a part of the
25 Pennsylvania Turnpike System.
26 "Toll road conversion." The inclusion within the turnpike
27 system and the imposition of tolls thereon of a highway that is
28 presently toll free.
29 "Vehicle." As defined in 75 Pa.C.S. § 102 (relating to
30 definitions).
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1 "Violation enforcement system." A vehicle sensor, placed in
2 a location to work in conjunction with a toll collection
3 facility, which automatically produces a videotape or
4 photograph, microphotograph or other recorded image of the rear
5 portion of each vehicle at the time the vehicle is used or
6 operated in violation of the toll collection regulations. The
7 term includes any other technology which identifies a vehicle by
8 photographic, electronic or other method.
9 § 8403. (Reserved).
10 § 8404. Status of turnpike revenue bonds, notes or other
11 obligations.
12 The turnpike revenue bonds, notes or other obligations issued
13 under the provisions of this chapter shall not be deemed to be a
14 debt of the Commonwealth or a pledge of the faith and credit of
15 the Commonwealth, but such bonds, notes or other obligations
16 shall be payable solely from the revenues of the commission,
17 including tolls, or from such funds as may be available to the
18 commission for that purpose. All such bonds, notes or other
19 obligations shall contain a statement on their face that the
20 Commonwealth is not obligated to pay the same or the interest
21 thereon except from revenues of the commission, including tolls,
22 or from such funds as may be available to the commission for
23 that purpose and that the faith and credit of the Commonwealth
24 is not pledged to the payment of the principal or interest of
25 such bonds, notes or other obligations. The issuance of turnpike
26 revenue bonds, notes or other obligations under the provisions
27 of this chapter shall not directly or indirectly or contingently
28 obligate the Commonwealth to levy or to pledge any form of
29 taxation whatever therefor or to make any appropriation for
30 their payment.
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1 § 8405. Pennsylvania Turnpike Commission membership,
2 compensation and term of office.
3 (a) Appointments prior to June 4, 1987.--Notwithstanding any
4 other law to the contrary, vacancies in the membership of the
5 commission existing after September 29, 1985, and before June 5,
6 1987, shall be filled as provided in paragraph (1) or (2),
7 whichever is applicable:
8 (1) (i) Any vacancy which:
9 (A) has occurred prior to September 30, 1985,
10 because of the expiration of the term of a member,
11 and as to which vacancy either:
12 (I) the member continues to serve pending
13 the appointment and qualification of his
14 successor; or
15 (II) the member, having held over, departs
16 the commission after September 17, 1985, but
17 prior to the appointment of a successor; or
18 (B) occurs after September 30, 1985, for a
19 reason other than the expiration of the term of a
20 member; or
21 (C) has occurred between September 17, 1985, and
22 the September 30, 1985, for a reason other than the
23 expiration of the term of a member;
24 shall be filled by appointment of the Governor by and
25 with the advice and consent of two-thirds of the members
26 elected to the Senate.
27 (ii) A member whose term has expired prior to
28 September 30, 1985, or after September 30, 1985, but
29 prior to June 4, 1987, shall continue to hold office
30 until his successor is appointed and qualified, or for 90
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1 days following June 4, 1987, whichever period is shorter.
2 (iii) Members appointed under the provisions of this
3 paragraph shall serve for a term of four years. Upon the
4 expiration of that term, such appointed member may
5 continue to hold office for 90 days or until his
6 successor shall be duly appointed and qualified,
7 whichever period is shorter, but shall not continue to
8 hold office thereafter unless reappointed in accordance
9 with law.
10 (2) (i) Any other vacancy not described in paragraph
11 (1) shall be filled by appointment of the Governor
12 without the advice and consent of the Senate. Any member
13 appointed in this manner shall serve for a term ending
14 June 4, 1987.
15 (ii) Upon the expiration of his term, an appointed
16 member may continue to hold office for 90 days or until
17 his successor shall be duly appointed and qualified,
18 whichever period is shorter, but shall not continue to
19 hold office thereafter unless reappointed in accordance
20 with the provisions of subsection (b).
21 (iii) Any vacancy occurring with respect to the
22 office of a member appointed pursuant to this paragraph
23 shall be filled as provided by this paragraph.
24 (b) Appointment after June 4, 1987.--Notwithstanding any
25 other law to the contrary, after June 4, 1987, any vacancy in
26 the membership of the commission shall be filled by appointment
27 of the Governor by and with the advice and consent of two-thirds
28 of the members elected to the Senate. Such appointed member
29 shall serve for a term of four years. Upon the expiration of
30 this term, an appointed member may continue to hold office for
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1 90 days or until his successor shall be duly appointed and
2 qualified, whichever period is shorter, but shall not continue
3 to hold office thereafter unless reappointed in accordance with
4 law.
5 (c) Appointment of additional temporary member.--
6 Notwithstanding any other law to the contrary, the Governor
7 shall appoint, without the advice and consent of the Senate, one
8 additional member to serve on the commission. The term of the
9 temporary additional member shall expire on June 4, 1987, and an
10 appointment to replace such member shall not be made to the
11 commission on or after June 5, 1987. Any vacancy occurring with
12 respect to the office of the temporary additional member prior
13 to June 4, 1987, shall be filled as provided by this subsection.
14 The additional temporary member shall not continue to hold
15 office in any capacity after June 4, 1987.
16 (d) Secretary of Transportation.--The provisions of
17 subsections (a) and (b) of this section shall not apply to the
18 appointment of the Secretary of Transportation who shall
19 continue to be appointed and to serve as a member of the
20 commission ex officio in accordance with law.
21 (e) Chairman.--After September 29, 1985, and before June 5,
22 1987, the Governor shall appoint from among the members of the
23 commission a member to serve as chairman of the commission for a
24 term extending until June 4, 1987. On and after June 5, 1987, a
25 majority of the members of the commission shall elect a member
26 of the commission to serve as chairman. On or after June 5,
27 1987, upon the appointment and qualification of any new member
28 to serve on the commission, the office of chairman, and the
29 positions of all other officers created by law, shall be deemed
30 vacant and a new chairman and other officers shall be elected by
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1 a majority of the members of the commission.
2 (f) Actions by the commission.--Notwithstanding any other
3 law, court decision, precedent or practice to the contrary, any
4 and all actions by or on behalf of the commission shall be taken
5 solely upon the approval of a majority of the members to the
6 commission. After September 29, 1985, and before June 5, 1987,
7 "a majority of the members of the commission" shall mean four
8 members of the commission. Thereafter, a majority of the members
9 of the commission shall mean three members of the commission.
10 The term "actions by or on behalf of the commission" means any
11 action whatsoever of the commission, including, but not limited
12 to, the hiring, appointment, removal, transfer, promotion or
13 demotion of any officers and employees; the retention, use or
14 remuneration of any advisors, counsel, auditors, architects,
15 engineers or consultants; the initiation of any legal action;
16 the making of any contracts, leases, agreements, bonds, notes or
17 covenants; the approval of requisitions, purchase orders,
18 investments and reinvestments; and the adoption, amendment,
19 revision or rescission of any rules and regulations, orders or
20 other directives. The chairman, vice chairman or any other
21 officer or employee of the commission may take no action by or
22 on behalf of the commission except as expressly authorized by a
23 majority of the members of the commission.
24 (g) Compensation.--The annual salary of the Chairman of the
25 Pennsylvania Turnpike Commission shall be $28,500, and the
26 annual salary of the remaining members of the Pennsylvania
27 Turnpike Commission shall be $26,000. These salaries shall be
28 paid in equal installments every other week.
29 § 8406. Exercise of commission powers deemed essential
30 governmental function.
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1 The exercise by the commission of the powers conferred by
2 this chapter in the construction, operation and maintenance of
3 the turnpikes and in effecting toll road conversions shall be
4 deemed and held to be an essential governmental function of the
5 Commonwealth.
6 § 8407. Commission powers and duties enumerated; payment of
7 maintenance.
8 (a) Powers and duties of commission.--The commission is
9 authorized to:
10 (1) Maintain a principal office at such place as shall
11 be designated by the commission.
12 (2) Contract and be contracted within its own name.
13 (3) Sue and be sued in its own name, plead and be
14 impleaded. Any and all actions at law or in equity against
15 the commission shall be brought only in the courts in which
16 such actions may be brought against the Commonwealth.
17 (4) Have an official seal.
18 (5) Make necessary rules and regulations for its own
19 government and in control of traffic.
20 (6) Acquire, hold, accept, own, use, hire, lease,
21 exchange, operate and dispose of personal property, real
22 property and interests in real property, and to make and
23 enter into all contracts and agreements necessary or
24 incidental to the performance of its duties and the execution
25 of its powers under this chapter, and to employ engineering,
26 traffic, architectural and construction experts and
27 inspectors, attorneys and other employees as may in its
28 judgment be necessary, and fix their compensation.
29 (7) Provide grade separations, at its own expense, with
30 respect to all public roads, State highways and interstate
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1 highways intersected by the turnpikes and to change and
2 adjust the lines and grades thereof so as to accommodate the
3 same to the design for such grade separation. The damages
4 incurred in changing and adjusting the lines and grades of
5 public roads, State highways and interstate highways shall be
6 ascertained and paid by the commission in accordance with 26
7 Pa.C.S. (relating to eminent domain). If the commission shall
8 find it necessary to provide a grade separation or change the
9 site of any portion of any interstate highway, State highway
10 or public road or vacate the same, it shall cause it to be
11 reconstructed and restored forthwith, at the commission's own
12 proper expense, on the most favorable location and in as
13 satisfactory a manner as the original road, or vacate it, as
14 the case may be. The method of acquiring the right-of-way and
15 determining damages incurred in changing the location of or
16 vacating such road, State highway or interstate highway shall
17 be ascertained and paid for in accordance with 26 Pa.C.S.
18 (relating to eminent domain).
19 (8) Petition the court of common pleas of the county
20 wherein is situate any public road or part thereof affected
21 by the location therein of the turnpikes, for the vacation,
22 relocation or supply of the same, or any part thereof, with
23 the same force and effect as is now given by existing laws to
24 the inhabitants of any township or such county, and the
25 proceedings upon such petition, whether it be for the
26 appointment of viewers or otherwise, shall be the same as
27 provided by existing law for similar proceedings upon the
28 petitions.
29 (9) Have all of the powers and perform all the duties
30 prescribed by the act of May 21, 1937 (P.L.774, No.211),
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1 referred to as the Pennsylvania Turnpike Commission Act.
2 (b) Maintenance to be paid out of tolls.--The turnpike
3 extensions and improvements and the conversion of toll-free
4 roads to toll roads when completed and open to traffic shall be
5 maintained and repaired by and under the control of the
6 commission. All charges and costs for the maintenance and
7 repairs actually expended by the commission shall be paid out of
8 tolls. The turnpike, the turnpike extensions and improvements
9 and the toll-free roads converted to toll roads shall also be
10 policed and operated by a force of police, toll takers and other
11 operating employees as the commission may, in its discretion,
12 employ.
13 § 8408. Expenses and bonding of commission members.
14 (a) Payment of expenses.--All compensation and salaries and
15 all expenses incurred in carrying out the provisions of this
16 chapter shall be paid solely from funds provided under the
17 authority of this chapter, and no liability or obligation shall
18 be incurred under this chapter beyond the extent to which money
19 shall have been provided under the authority of this chapter.
20 (b) No additional bond required.--The issuance of any
21 turnpike revenue bonds, notes or other obligations under the
22 provisions of this chapter shall not cause any member of the
23 commission to be required to execute a bond that a member of the
24 commission is not otherwise required to execute.
25 § 8409. Acquisition of property rights by commission.
26 (a) Condemnation.--The commission is hereby authorized and
27 empowered to condemn, pursuant to the provisions of 26 Pa.C.S.
28 (relating to eminent domain), any lands, interests in lands,
29 property rights, rights-of-way, franchises, easements and other
30 property deemed necessary or convenient for the construction and
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1 efficient operation of the turnpikes and the toll road
2 conversions or necessary in the restoration or relocation of
3 public or private property damaged or destroyed.
4 (b) Purchase.--The commission is hereby authorized and
5 empowered to acquire by purchase, whenever it shall deem such
6 purchase expedient, or otherwise accept if dedicated to it, any
7 lands, interests in lands, property rights, rights-of-way,
8 franchises, easements and other property deemed necessary or
9 convenient for the construction and efficient operation of the
10 turnpikes and toll road conversions or necessary in the
11 restoration of public or private property damaged or destroyed,
12 whether the same had theretofore been condemned or otherwise,
13 upon such terms and at such price as may be considered by it to
14 be reasonable and can be agreed upon between the commission and
15 the owner thereof, and to take title thereto in the name of the
16 commission. The net proceeds of the purchase price payable to a
17 municipality or the Department of Transportation for any real
18 property or interest therein obtained by the commission pursuant
19 to this chapter, less the cost of retiring any bonded
20 indebtedness on such property or interest, shall be used
21 exclusively, in the case of a municipality, for road and bridge-
22 related expenses and, in the case of the Department of
23 Transportation, for highway and bridge construction,
24 reconstruction and maintenance in the same engineering and
25 maintenance district wherein the subject property is located.
26 § 8410. Procedural requirements of acquisition.
27 (a) Title.--Title to any property condemned by the
28 commission shall be taken in the name of the commission.
29 (b) Entry.--In addition to the foregoing powers, the
30 commission and its authorized agents and employees may enter
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1 upon any lands, waters and premises in this Commonwealth for the
2 purpose of making surveys, soundings, drillings and
3 examinations, as it may deem necessary or convenient for the
4 purpose of this chapter, and the entry shall not be deemed a
5 trespass, nor shall an entry for such purposes be deemed an
6 entry under any condemnation proceedings which may be then
7 pending. The commission shall make reimbursement for any actual
8 damages resulting to the lands, waters and premises as a result
9 of the activities.
10 (c) Restoration of property.--All public or private property
11 damaged or destroyed in carrying out the powers granted by this
12 chapter shall be restored or repaired and placed in their
13 original condition as nearly as practicable or adequate
14 compensation made therefor out of funds provided under the
15 authority of this chapter.
16 (d) Powers of public bodies.--All political subdivisions and
17 all public agencies and commissions of the Commonwealth,
18 notwithstanding any contrary provision of law, are hereby
19 authorized and empowered to lease, lend, dedicate, grant, convey
20 or otherwise transfer to the commission, upon its request, upon
21 such terms and conditions as the proper authorities of such
22 political subdivisions or public agencies and commissions of the
23 Commonwealth may deem reasonable and fair and without the
24 necessity for any advertisement, order of court or other action
25 or formality, other than the regular and formal action of the
26 authorities concerned, any real property which may be necessary
27 or convenient to the effectuation of the authorized purposes of
28 the commission, including public roads and other real property
29 already devoted to public use.
30 § 8411. Entry and possession of property condemned.
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1 Whenever the commission has condemned any lands, rights,
2 rights-of-way, easements and franchises, or interests therein,
3 as provided in this chapter, the commission may proceed to
4 obtain possession in the manner provided by 26 Pa.C.S. (relating
5 to eminent domain).
6 § 8412. Issuance of turnpike revenue bonds, notes or other
7 obligations.
8 (a) Issuance of bonds.--The commission is hereby authorized
9 to provide, by resolution, at one time or from time to time, for
10 the issuance of turnpike revenue bonds, notes or other
11 obligations of the commission for the purpose of paying the cost
12 of the turnpikes, including the reconstruction of the converted
13 roads as provided for in this chapter and the repayment to the
14 Federal Treasury of any funds so required to be repaid pursuant
15 to any special legislation passed by the Congress of the United
16 States authorizing the conversion of toll-free roads to toll
17 roads. The principal and interest of the bonds, notes or other
18 obligations shall be payable solely from revenues of the
19 commission, including tolls collected on the various turnpike
20 extensions, improvements and toll road conversions authorized by
21 this chapter and those tolls collected on the Pennsylvania
22 Turnpike System, subject to the terms of any trust indenture
23 heretofore entered into by the commission and any existing bond
24 resolution of the commission or from such funds as may be
25 available to the commission for that purpose. The bonds, notes
26 or other obligations shall be dated, shall bear interest at such
27 rate or rates acceptable to the commission, shall mature at such
28 time or times not exceeding 40 years from their date or dates,
29 as may be determined by the commission, and may be made
30 redeemable before maturity, at the option of the commission, at
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1 such price or prices and under such terms and conditions as may
2 be fixed by the commission prior to the issuance of the bonds,
3 notes or other obligations. The principal and interest of such
4 bonds, notes or other obligations may be made payable in any
5 lawful medium. The commission shall determine the form of bonds,
6 notes or other obligations, including any interest coupons to be
7 attached thereto, and shall fix the denomination or
8 denominations of the bonds, notes or other obligations, and the
9 place or places of payment of principal and interest thereof,
10 which may be at any bank or trust company within or without the
11 Commonwealth. The bonds, notes or other obligations shall be
12 approved by and shall bear the facsimile signatures of the
13 Governor and of the chairman of the commission, and the
14 facsimile of the official seal of the commission shall be
15 affixed thereto, and attested by the secretary and treasurer of
16 the commission, and any coupons attached thereto shall bear the
17 facsimile signature of the chairman of the commission. In case
18 any officer whose signature or a facsimile of whose signature
19 shall appear on any bonds, notes or other obligations or coupons
20 shall cease to be such officer before the delivery of such
21 bonds, notes or other obligations, such signature or such
22 facsimile shall nevertheless be valid and sufficient for all
23 purposes, the same as if he had remained in office until such
24 delivery.
25 (b) Form of bonds.--The bonds, notes or other obligations
26 authorized under this section may be issued in bearer or
27 registered form, with or without coupons attached as the
28 commission may determine, and provision may be made for the
29 registration of any coupon bonds as to principal alone and also
30 as to both principal and interest, and registered and coupon
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1 bonds, notes or other obligations may be made interchangeable.
2 The commission may sell such bonds, notes or other obligations
3 in such manner and for such price as it may determine to be for
4 the best interest of the Commonwealth.
5 (c) Use of bond proceeds.--The proceeds of such bonds, notes
6 or other obligations shall be used for the payment of the cost
7 of the turnpikes and the toll road conversions, including the
8 reconstruction of the converted roads as provided for in this
9 chapter and the repayment to the Federal Treasury of any funds
10 so required to be repaid pursuant to any special legislation
11 passed by the Congress of the United States authorizing the
12 conversion of toll-free roads to toll roads, and shall be
13 disbursed upon requisition of the chairman of the commission
14 under such restrictions, if any, as the resolution authorizing
15 the issuance of the bonds, notes or other obligations, or any
16 trust indenture or other agreement entered into by the
17 commission, may provide. If the proceeds of the bonds, notes or
18 other obligations shall exceed the cost of the turnpikes and the
19 toll road conversions, including the reconstruction of the
20 converted roads as provided for in this chapter and the
21 repayment to the Federal Treasury of any funds so required to be
22 repaid pursuant to any special legislation passed by the
23 Congress of the United States authorizing the conversion of
24 toll-free roads to toll roads, such excess proceeds shall be set
25 aside and applied to the payment of the principal and the
26 interest of such bonds, notes or other obligations as are issued
27 pursuant to this chapter. Prior to the preparation of definitive
28 bonds, notes or other obligations, the commission may, under
29 like restrictions, issue temporary bonds, notes or other
30 obligations with or without coupons, exchangeable for definitive
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1 bonds, notes or other obligations upon the issuance of the
2 latter. The commission may also provide for the replacement of
3 any bond, note or other obligation which shall become mutilated
4 or be destroyed or lost. Such turnpike revenue bonds, notes or
5 other obligations may be issued without any other proceedings or
6 the happening of any other conditions or things than those
7 proceedings, conditions and things which are specified and
8 required by this chapter.
9 (d) Power to borrow.--The commission is hereby authorized to
10 borrow money, from time to time, to provide for preliminary or
11 interim financing up to, but not exceeding, the estimated total
12 cost of the turnpikes and the toll road conversions, including
13 the reconstruction of said converted roads as provided for in
14 this chapter and the repayment to the Federal Treasury of any
15 funds so required to be repaid pursuant to any special
16 legislation passed by the Congress of the United States
17 authorizing the conversion of toll-free roads to toll roads, and
18 to evidence such borrowing by the issuance of turnpike notes or
19 other obligations of the commission and, in its discretion, to
20 pledge as collateral for such notes or other obligations,
21 turnpike revenue bonds, notes or other obligations issued under
22 the provisions of this chapter, and to renew any such notes or
23 other obligations, from time to time, and the payment or
24 retirement of such notes or other obligations shall be
25 considered to be payment of the cost of the projects authorized
26 by this chapter.
27 (e) Bonds as securities.--The bonds, notes or other
28 obligations authorized under this section are hereby made
29 securities in which all State and municipal officers and
30 administrative departments, boards and commissions of the
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1 Commonwealth; all banks, bankers, savings banks, trust
2 companies, saving and loan associations, investment companies
3 and other persons carrying on a banking business; all insurance
4 companies, insurance associations and other persons carrying on
5 an insurance business; and all administrators, executors,
6 guardians, trustees and other fiduciaries; and all other persons
7 whatsoever who now or may hereafter be authorized to invest in
8 bonds or other obligations of the Commonwealth, may properly and
9 legally invest any funds, including capital, belonging to them
10 or within their control, and the bonds, notes or other
11 obligations are hereby made securities which may properly and
12 legally be deposited with and received by any State or municipal
13 officer or agency of the Commonwealth, for any purpose for which
14 the deposit of bonds, notes or other obligations of the
15 Commonwealth is now or may hereafter be authorized by law.
16 (f) Negotiable instruments.--All such bonds, notes or other
17 obligations authorized herein shall have and are hereby declared
18 to have all the qualities and incidents of negotiable
19 instruments under the laws of this Commonwealth.
20 § 8413. Obligation proceeds restricted and lien created.
21 All money received from any bonds, notes or other obligations
22 issued pursuant to this chapter shall be applied solely to the
23 payment of the cost of the turnpike, the turnpike extensions and
24 improvements and the toll road conversions, including the
25 reconstruction of said converted roads as provided for in this
26 chapter and the repayment to the Federal Treasury of any funds
27 so required to be repaid pursuant to any special legislation
28 passed by the Congress of the United States authorizing the
29 conversion of toll-free roads to toll roads or to the
30 appurtenant fund, and there is created and granted a lien upon
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1 such money, until so applied, in favor of holders of such bonds,
2 notes or other obligations or the trustee hereinafter provided
3 for in respect of such bonds, notes or other obligations.
4 § 8414. Trust indenture authorized.
5 (a) Security for bonds.--In the discretion of the
6 commission, such bonds, notes or other obligations may be
7 secured by a trust indenture by and between the commission and a
8 corporate trustee, which may be any trust company or bank having
9 the powers of a trust company, within this Commonwealth. Such
10 trust indenture may pledge or assign tolls and revenue to be
11 received but shall not convey or mortgage the Pennsylvania
12 Turnpike System, including the turnpikes and toll road
13 conversions provided for by this chapter or any part thereof.
14 (b) Rights of bondholders.--Either the resolution providing
15 for the issuance of such bonds, notes or other obligations or
16 such trust indenture may contain such provisions for protecting
17 and enforcing the rights and remedies of the bondholders or
18 holders of notes or other obligations as may be reasonable and
19 proper and not in violation of law, including covenants setting
20 forth the duties of the commission in relation to the
21 acquisition of properties and the construction, maintenance,
22 operation and repair, and insurance of, the turnpikes, and the
23 custody, safeguarding and application of all money. It shall be
24 lawful for any bank or trust company incorporated under the laws
25 of this Commonwealth to act as a depository of the proceeds of
26 bonds, notes or other obligations or revenues and to furnish
27 such indemnity bonds or to pledge such securities as may be
28 required by the commission. The trust indenture may set forth
29 the rights and remedies of the bondholders or holders of notes
30 or other obligations and of the trustee and may restrict the
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1 individual right of action of bondholders or holders of notes or
2 other obligations as is customary in trust indentures securing
3 bonds, debentures of corporations, notes or other obligations.
4 In addition to the foregoing, the trust indenture may contain
5 such other provisions as the commission may deem reasonable and
6 proper for the security of bondholders or holders of notes or
7 other obligations. All expenses incurred in carrying out the
8 trust indenture may be treated as part of the cost of
9 maintenance, operation and repair of the turnpikes and toll road
10 conversions provided for by this chapter.
11 § 8415. Commission and obligations tax exempt.
12 The accomplishment by the commission of the authorized
13 purposes stated in this chapter being for the benefit of the
14 people of the Commonwealth and for the improvement of their
15 commerce and prosperity, in which accomplishment the commission
16 will be performing essential governmental functions, the
17 commission shall not be required to pay any taxes or assessments
18 on any property acquired or used by it for the purposes provided
19 in this chapter, and the bonds, notes or other obligations
20 issued by the commission, their transfer and the income
21 therefrom, including any profits made on the sale thereof, shall
22 at all times be free from taxation within this Commonwealth.
23 § 8416. Collection and disposition of tolls and other revenue.
24 (a) Establishment and changes in toll amounts.--Subject to
25 the terms of any trust indenture entered into by the commission
26 and any resolution authorizing the issuance of any bonds, notes
27 or other obligations of the commission, the commission is hereby
28 authorized to fix, and to revise, from time to time, tolls for
29 the use of the Pennsylvania Turnpike System and the different
30 parts or sections thereof, including the turnpike, the turnpike
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1 extensions and improvements and the toll road conversions
2 authorized by this chapter, and to charge and collect the same,
3 and to contract with any person, partnership, association or
4 corporation desiring the use of any part thereof, including the
5 right-of-way adjoining the paved portion, for placing thereon
6 telephone, telegraph, electric light or power lines, gas
7 stations, garages, stores, hotels, restaurants and advertising
8 signs, or for any other purpose, except for tracks for railroad
9 or railway use, and to fix the terms, conditions, rents and
10 rates of charges for such use. Tolls shall be so fixed and
11 adjusted as to provide funds at least sufficient with other
12 revenues of the Pennsylvania Turnpike System, if any, to pay:
13 (1) the cost of constructing, maintaining, repairing and
14 operating the Pennsylvania Turnpike System and the different
15 parts and sections thereof; and
16 (2) any bonds, notes or other obligations and the
17 interest thereon of the commission, and all sinking fund
18 requirements of the commission, and other requirements
19 provided for by any resolution authorizing the issuance of
20 the bonds, notes or other obligations by the commission, or
21 by any trust indenture to which the commission is a party, as
22 the same shall become due.
23 (b) Restrictions on toll revenue.--Tolls shall not be
24 subject to supervision or regulation by any other State
25 commission, board, bureau or agency. Subject to the terms of any
26 presently existing trust indenture entered into by the
27 commission and any presently existing resolution authorizing the
28 issuance of any bonds, notes or other obligations of the
29 commission, the tolls and all other revenue derived from the
30 Pennsylvania Turnpike System shall be set aside and pledged as
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1 may be provided in any resolutions, trust indentures or any
2 other agreements that the commission may hereafter adopt or
3 hereafter enter into with respect to the issuance of bonds,
4 notes or other obligations of the commission.
5 § 8416.1. Electronic toll collection.
6 (a) Liability of owner.--
7 (1) Notwithstanding any other provision of law, if an
8 operator of a vehicle fails to pay the prescribed toll at any
9 location where tolls are collected by means of electronic
10 toll collection, the owner of the vehicle shall be liable to
11 the commission for failure of the operator of the vehicle to
12 comply with this section where the violation is evidenced by
13 information obtained from a violation enforcement system.
14 (2) If a violation of this section is committed, the
15 registration plate number of the vehicle as recorded by a
16 violation enforcement system shall establish an inference
17 that the owner of the vehicle was then operating the vehicle.
18 The inference shall be overcome if the owner does all of the
19 following:
20 (i) Testifies that the owner was not operating the
21 vehicle at the time of the violation.
22 (ii) Submits to an examination as to who at the time
23 was operating the vehicle.
24 (iii) Reveals the name and residence address, if
25 known, of the operator of the vehicle.
26 (3) If an action or proceeding is commenced in a county
27 other than that of the residence of the owner, a verified
28 written statement setting forth the facts prescribed in
29 paragraph (2)(i) through (iii) shall suffice to overcome the
30 inference.
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1 (4) If the inference is overcome, the operator of the
2 vehicle may be held liable under this section for failure to
3 pay the prescribed toll in the same manner as if the operator
4 were the owner of the vehicle.
5 (b) Imposition of liability.--The liability set forth in
6 subsection (a) shall be imposed upon an owner for a violation of
7 this section or the regulations of the commission occurring
8 within the territorial limits of this Commonwealth. If a
9 violation is committed as evidenced by a violation enforcement
10 system, the following shall apply:
11 (1) The commission or an authorized agent or employee
12 must prepare and mail a notice of violation:
13 (i) The notice of violation must be sent by first
14 class mail to each person alleged to be liable as an
15 owner for a violation of this section. The notice must be
16 mailed to the owner at the address shown on the vehicle
17 registration no later than 60 days after the alleged
18 conduct, except that if the inference of operation is
19 overcome as prescribed in subsection (a), the notice must
20 be mailed to the alleged operator of the vehicle no later
21 than 60 days after the date the inference is overcome.
22 Personal service shall not be required. A manual or
23 automatic record of mailing prepared in the ordinary
24 course of business shall be prima facie evidence of the
25 mailing of notice.
26 (ii) The notice must contain information advising
27 the person charged of the manner and time in which the
28 liability alleged in the notice may be contested. The
29 notice must also contain a warning advising the person
30 charged that failure to contest in the manner and time
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1 provided shall be deemed an admission of liability and
2 that a default judgment may be entered on the notice.
3 (2) If an owner of a vehicle or an owner who is a lessor
4 of a vehicle receives a notice of violation under this
5 section for any time period during which the vehicle was
6 reported to a police department as having been stolen, it
7 shall be a defense to the allegation of liability that the
8 vehicle had been reported to the police as having been stolen
9 prior to the time the violation occurred and that the vehicle
10 had not been recovered by the time of the violation. For
11 purposes of asserting the defense provided by this
12 subsection, it shall be sufficient that a certified copy of
13 the police report on the stolen vehicle be sent by first
14 class mail to the commission within 30 days after receiving
15 the original notice of violation. Failure to send the
16 information within the 30-day time limit shall render the
17 owner or lessor liable for the penalty prescribed by this
18 section.
19 (3) An owner who is a lessor of a vehicle as to which a
20 notice of violation was issued under paragraph (1) shall not
21 be liable for a violation if the owner sends to the
22 commission a copy of the rental, lease or other such contract
23 document covering the vehicle on the date of the violation,
24 with the name and address of the lessee clearly legible to
25 the commission, within 30 days after receiving the original
26 notice of violation. Failure to send such information within
27 the 30-day time limit shall render the lessor liable for the
28 penalty prescribed by this section. If the lessor complies
29 with the provisions of this section, the lessee of the
30 vehicle on the date of the violation shall be deemed to be
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1 the owner of the vehicle for purposes of this section and
2 shall be subject to liability for the penalty prescribed by
3 this subsection.
4 (4) A certified report or a facsimile report of an
5 authorized agent or employee of the commission reporting a
6 violation of this section or regulations of the commission
7 based upon the recorded information obtained from a violation
8 enforcement system shall be prima facie evidence of the facts
9 contained in the report and shall be admissible as an
10 official record kept in the ordinary course of business in
11 any proceeding charging a violation of this section or the
12 toll collection regulations of the commission.
13 (5) Notwithstanding any other provision of law, all
14 videotapes, photographs, microphotographs, other recorded
15 images, written records, reports or facsimiles prepared
16 pursuant to this section shall be for the exclusive use of
17 the commission, its authorized agents, its employees and law
18 enforcement officials for the purpose of discharging duties
19 pursuant to this section and the regulations of the
20 commission. The information shall not be deemed a public
21 record under the act of June 21, 1957 (P.L.390, No.212),
22 referred to as the Right-to-Know Law. The information shall
23 not be discoverable by court order or otherwise, nor shall it
24 be offered in evidence in any action or proceeding which is
25 not directly related to a violation of this section, the
26 regulations of the commission or indemnification for
27 liability imposed pursuant to this section. The restrictions
28 set forth in this paragraph shall not be deemed to preclude a
29 court of competent jurisdiction from issuing an order
30 directing that the information be provided to law enforcement
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1 officials if the information is reasonably described and is
2 requested solely in connection with a criminal law
3 enforcement action. The restrictions set forth in this
4 paragraph shall not be deemed to preclude the exchange of
5 such information between any entities with jurisdiction over
6 or which operate an electronic toll collection system in this
7 Commonwealth or any other jurisdiction, nor shall it be
8 deemed to prohibit the use of information exclusively for the
9 purpose of billing electronic toll collection account
10 holders, deducting toll charges from the account of an
11 account holder, enforcing toll collection laws and related
12 regulations or enforcing the provisions of an account holder
13 agreement.
14 (6) An imposition of liability under this section must
15 be based upon a preponderance of evidence. An imposition of
16 liability pursuant to this section shall not be deemed a
17 conviction of an owner and shall not be made part of the
18 motor vehicle operating record of the person upon whom such
19 liability is imposed, nor shall it be considered in the
20 provision of motor vehicle insurance coverage.
21 (7) An owner who shall admit, be found liable or fail to
22 respond to the notice of violation for a violation of this
23 section shall be civilly liable to the commission for the
24 amount of the toll evaded or attempted to be evaded, if such
25 amount can be determined, and a reasonable administrative fee
26 not to exceed $35 per notification. If the amount of the toll
27 evaded or attempted to be evaded cannot be determined, that
28 amount shall be deemed to be equal to the maximum toll from
29 the farthest point of entry on the Pennsylvania Turnpike to
30 the actual point of exit.
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1 (8) Nothing in this section shall be construed to limit
2 the liability of the operator of a vehicle for any violation
3 of this section or of the regulations of the commission.
4 (c) Placement of electronic toll collection device.--An
5 electronic toll collection device which is affixed to the front
6 windshield of a vehicle in accordance with the regulations of
7 the commission shall not be deemed to constitute a violation of
8 75 Pa.C.S. § 4524 (relating to windshield obstructions and
9 wipers).
10 (d) Privacy of electronic toll collection account holder
11 information.--Notwithstanding any other provision of law, all
12 information kept by the commission, its authorized agents or its
13 employees which is related to the account of an electronic toll
14 collection system account holder shall be for the exclusive use
15 of the commission, its authorized agents, its employees and law
16 enforcement officials for the purpose of discharging their
17 duties pursuant to this section and the regulations of the
18 commission. This information includes names, addresses, account
19 numbers, account balances, personal financial information,
20 vehicle movement records or other information compiled from
21 transactions with such account holders. The information shall
22 not be deemed a public record under the Right-to-Know Law, nor
23 shall it be discoverable by court order or otherwise or be
24 offered in evidence in any action or proceeding which is not
25 directly related to the discharge of duties under this section,
26 the regulations of the commission or a violation of an account
27 holder agreement. The restrictions set forth in this subsection
28 shall not be deemed to preclude a court of competent
29 jurisdiction from issuing an order directing that the
30 information be provided to law enforcement officials if the
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1 information is reasonably described and is requested solely in
2 connection with a criminal law enforcement action. The
3 restriction set forth in this subsection shall not be deemed to
4 preclude the exchange of such information between any entities
5 with jurisdiction over or which operate an electronic toll
6 collection system in this Commonwealth or any other
7 jurisdiction, nor shall it be deemed to prohibit the use of the
8 information exclusively for the purpose of billing electronic
9 toll collection account holders, deducting toll charges from the
10 account of an account holder, enforcing toll collection laws and
11 related regulations or enforcing the provisions of an account
12 holder agreement.
13 (e) Definition.--As used in this section, the term "owner"
14 means any person, corporation, firm, partnership, agency,
15 association, organization or lessor that, at the time a vehicle
16 is operated in violation of this section or regulations of the
17 commission, is the beneficial or equitable owner of the vehicle,
18 has title to the vehicle, is the registrant or coregistrant of
19 the vehicle registered with the Department of Transportation or
20 a comparable agency of another jurisdiction or uses the vehicle
21 in its vehicle renting or leasing business. The term includes a
22 person entitled to the use and possession of a vehicle subject
23 to a security interest in another person.
24 § 8417. Refunding bonds.
25 The commission is hereby authorized to provide, by
26 resolution, for the issuance of turnpike revenue refunding bonds
27 for the purpose of refunding any turnpike revenue bonds, notes
28 or other obligations issued and then outstanding. The issuance
29 of such turnpike revenue refunding bonds, the maturities and
30 other details thereof, the rights of the holders thereof and the
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1 duties of the Commonwealth and of the commission in respect to
2 the same shall be governed by the provisions of this chapter
3 insofar as the same may be applicable.
4 § 8418. Rights of obligation holders and trustees.
5 Any holder of bonds, notes or other obligations issued under
6 the provisions of this chapter, or any of the coupons attached
7 thereto, and the trustee under the trust indenture, if any,
8 except to the extent the rights given in this section, may be
9 restricted by resolution passed before the issuance of the
10 bonds, notes or other obligations, or by the trust indenture,
11 may, either at law or in equity, by suit, action, mandamus or
12 other proceedings, protect and enforce any and all rights
13 granted hereunder or under such resolution or trust indenture
14 and may enforce and compel performance of all duties required by
15 this chapter or by such resolution or trust indenture to be
16 performed by the commission or any officer thereof, including
17 the fixing, charging and collecting of tolls for the use of the
18 turnpikes.
19 § 8419. Authority granted to Secretary of Transportation.
20 (a) Agreement with Federal Government.--The Secretary of
21 Transportation is hereby authorized and empowered to enter into
22 an agreement with the United States Department of
23 Transportation, the Federal Highway Administration and any other
24 Federal agency pursuant to section 105 of the Federal-Aid
25 Highway Act of 1978 (Public Law 95-599), in order to obtain
26 Federal funds for projects for resurfacing, restoring and
27 rehabilitating toll roads in Pennsylvania. The commission is
28 authorized to use Federal funds which may be available for toll
29 roads only pursuant to the approval of the Pennsylvania
30 Secretary of Transportation and only pursuant to the authority
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1 granted in this section.
2 (b) Approval by department.--All contracts and agreements
3 relating to the construction of the turnpikes and connecting
4 tunnels and bridges shall be approved by the Department of
5 Transportation.
6 § 8420. Construction of chapter.
7 This chapter shall be deemed to provide an additional and
8 alternative method for the doing of things authorized thereby
9 and shall be regarded as supplemental and additional to powers
10 conferred by other laws and shall not be regarded as in
11 derogation of any powers now existing and shall be liberally
12 construed to effect the purposes thereof.
13 Section 6. Sections 8901, 8911 and 8915 of Title 75, amended
14 July 18, 2007 (P.L.169, No.44), are amended to read:
15 § 8901. Definitions.
16 The following words and phrases when used in this chapter
17 shall have the meanings given to them in this section unless the
18 context clearly indicates otherwise:
19 ["Annual additional payments." As follows:
20 (1) During the conversion period and after the
21 conversion date, an amount equal to the scheduled annual
22 commission contribution, minus the sum of:
23 (i) $200,000,000 paid as annual base payments;
24 (ii) any Interstate 80 savings for that fiscal year.
25 (2) If the conversion period has expired and a
26 conversion notice has not been received by the secretary, in
27 each subsequent fiscal year until the end of the term of the
28 lease agreement, the annual additional payments shall be
29 $250,000,000.
30 "Annual base payments." An amount equal to the sum of the
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1 following:
2 (1) Annual debt service on outstanding bonds issued
3 under section 9511.2 (relating to special revenue bonds)
4 payable as required pursuant to the bonds.
5 (2) Two hundred million dollars payable annually in four
6 equal installments each due the last business day of each
7 July, October, January and April.
8 "Annual surplus payments." An amount equal to the general
9 reserve fund surplus payable for each fiscal year until the end
10 of the term of the lease agreement.
11 "Auditor General's certificate." The certificate issued by
12 the Auditor General within 180 days after the end of each fiscal
13 year of the Pennsylvania Turnpike Commission certifying all of
14 the following:
15 (1) The amount of the general reserve fund surplus for
16 the fiscal year.
17 (2) After review of the commission's current ten-year
18 capital plan, that the transfer of the general reserve fund
19 surplus under section 8915.3 (relating to lease of Interstate
20 80; related agreements) shall not impair the ability of the
21 commission to meet its obligations under the lease agreement
22 or the commission's ten-year capital plan.]
23 "Commission." The Pennsylvania Turnpike Commission.
24 ["Conversion date." The date set forth in the conversion
25 notice when the Pennsylvania Turnpike Commission intends to
26 exercise its option to convert Interstate 80 to a toll road.
27 "Conversion notice." Written notice to the Secretary of
28 Transportation from the Pennsylvania Turnpike Commission
29 providing notice of its intent to exercise its options to
30 convert Interstate 80 under section 8915.3(3) (relating to lease
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1 of Interstate 80; related agreements).
2 "Conversion period." A period of three years:
3 (1) which begins on the date of execution of the lease
4 agreement; and
5 (2) during which the Pennsylvania Turnpike Commission
6 may give the Department of Transportation conversion notice
7 or notice that the commission has exercised its option to
8 extend the conversion period pursuant to section 8915.3(2)
9 (relating to lease of Interstate 80; related agreements).
10 "Fiscal year." The fiscal year of the Commonwealth.
11 "General reserve fund surplus." The amount which:
12 (1) is certified by the Auditor General in the Auditor
13 General's certificate as existing in the Pennsylvania
14 Turnpike Commission's general reserve fund on the last day of
15 the fiscal year of the commission; and
16 (2) is not required to be retained in the general
17 reserve fund pursuant to any financial documents, financial
18 covenants, insurance policies, liquidity policies or
19 agreements in effect at the commission.
20 "Interstate 80 savings." An amount equal to the following:
21 (1) Prior to the conversion date, the amount shall be
22 zero.
23 (2) In the first fiscal year, including the conversion
24 date, the amount shall be a pro rata share of $116,985,856
25 calculated using the number of calendar days in the year
26 after the conversion date divided by 365 days.
27 (3) In the fiscal year succeeding the year, including
28 the conversion date, the amount shall be $121,665,290.
29 (4) In subsequent fiscal years, the amount shall be the
30 amount calculated for the previous year increased by 4%.
20070H1878B2575 - 181 -
1 "Lease agreement." A lease agreement between the Department
2 of Transportation and the Pennsylvania Turnpike Commission which
3 shall include provisions setting forth the terms of the
4 conversion of Interstate 80 to a toll road.
5 "Scheduled annual commission contribution." The following
6 amounts:
7 (1) $750,000,000 in fiscal year 2007-2008.
8 (2) $850,000,000 in fiscal year 2008-2009.
9 (3) $900,000,000 in fiscal year 2009-2010.
10 (4) For fiscal year 2010-2011 and each fiscal year
11 thereafter, the amount shall be the amount calculated for the
12 previous year increased by 2.5%, except that the amount shall
13 be equal to the annual base payments plus $250,000,000 if the
14 conversion notice is not received by the secretary prior to
15 the expiration of the conversion period.]
16 § 8911. Improvement and extension authorizations.
17 In order to facilitate vehicular traffic within and across
18 this Commonwealth, the commission is hereby authorized and
19 empowered to construct, operate and maintain turnpike extensions
20 and turnpike improvements at such specific locations and
21 according to such schedule as shall be deemed feasible and
22 approved by the commission, together with connecting roads,
23 storm water management systems, [interchanges, slip ramps,]
24 tunnels and bridges, subject to the waiver of the Federal toll
25 prohibition provisions where applicable, as follows:
26 (1) Widen turnpike to six lanes between the Northeast
27 Extension and the Delaware River Interchange.
28 (2) Construct turnpike interchange with Interstate Route
29 95 in Bucks County.
30 (3) Construct turnpike interchange with Interstate Route
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1 476 in Montgomery County.
2 (4) Construct turnpike interchange with Keyser Avenue in
3 Lackawanna County.
4 (5) Construct extensions to the existing turnpike from a
5 point westerly of existing Interchange 2 extending northerly
6 to a connection with the existing interchange between U.S.
7 Route 422 and proposed State Route 60 in Lawrence County and
8 extending southerly to a connection with existing State Route
9 60 in Beaver County at or near State Route 51.
10 (6) Construct an extension to the turnpike from a point
11 at or near Interchange 8 in Westmoreland County extending
12 northerly to an interchange with State Route 66 northwest of
13 Greensburg and continuing northerly to an interchange with
14 U.S. Route 22 south of Delmont.
15 (7) Construct an additional Lehigh Tunnel on the
16 Northeast Extension of the turnpike.
17 (8) Construct a private turnpike interchange directly
18 connected to the New Cumberland Army Depot. The commission
19 may commence construction of the private turnpike interchange
20 notwithstanding the construction schedule established by this
21 section.
22 (9) Construct an interchange on the Northeast Extension
23 with State Route 903 in Carbon County. The commission may
24 commence construction of this interchange notwithstanding the
25 construction schedule established by this section.
26 [(10) Other slip ramps and interchanges as the
27 commission may determine.]
28 § 8915. Conversion to toll roads.
29 In order to facilitate vehicular traffic within and across
30 this Commonwealth, and [to facilitate] after the completion of
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1 the turnpike extensions and improvements authorized in section
2 8911 (relating to improvement and extension authorizations), and
3 subject to prior legislative approval by the General Assembly
4 and the United States Congress, the commission is hereby
5 authorized and empowered to convert to toll roads such portions
6 of Pennsylvania's interstate highway system as may be required
7 in order to facilitate the completion of the turnpike extensions
8 and improvements authorized in sections 8912 (relating to
9 subsequent extension authorizations), 8913 (relating to
10 additional subsequent extension authorizations) and 8914
11 (relating to further subsequent authorizations) and to operate
12 and maintain such converted interstates as toll roads upon the
13 approval by the Congress of the United States of America and the
14 General Assembly of this Commonwealth of legislation expressly
15 permitting the conversion of such interstates to toll roads.
16 Such conversions shall take place at a time and manner set forth
17 in the plan for the conversion prepared by the [commission with
18 the cooperation of the] department. The provisions authorizing
19 the commission to construct, operate and maintain the turnpike
20 routes in sections 8911, 8912 and 8913 shall be subject to:
21 (1) the prior passage by the Congress of the United
22 States and the General Assembly of this Commonwealth of
23 legislation permitting the conversion of certain interstates
24 to toll roads; or
25 (2) the availability of such other funds as might become
26 available in amounts that would be sufficient to fund to
27 completion any of the individual turnpike extensions and
28 improvements set forth in sections 8912, 8913 and 8914 so
29 long as no turnpike extension or improvement authorized by
30 section 8914 is undertaken until after all the turnpike
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1 extensions authorized by section 8913 are completed and no
2 turnpike extension authorized by section 8913 is undertaken
3 until after all the turnpike extensions and improvements
4 authorized by section 8912 are completed. The commission is
5 authorized to use Federal funds which may be available for
6 toll roads only pursuant to the approval of the Secretary of
7 Transportation and only pursuant to the authority granted in
8 section 19 of the act of September 30, 1985 (P.L.240, No.61),
9 known as the Turnpike Organization, Extension and Toll Road
10 Conversion Act.
11 Section 7. Sections 8915.1, 8915.2, 8915.3, 8915.4, 8915.5,
12 8915.6, 8915.7, 8917, 8918, 9501, 9511.2, 9511.3, 9511.4,
13 9511.5, 9511.6, 9511.7, 9511.8, 9511.9, 9511.10, 9511.11,
14 9511.12 and 9511.13 of Title 75, added July 18, 2007 (P.L.169,
15 No.44), are repealed:
16 [§ 8915.1. Conversion of Interstate 80.
17 In order to facilitate vehicular traffic across this
18 Commonwealth, the commission is authorized and empowered to do
19 all of the following:
20 (1) Convert Interstate 80 to a toll road and maintain
21 and operate it as a toll road.
22 (2) Construct, reconstruct, widen, expand, extend,
23 maintain and operate Interstate 80 from a point at or near
24 the Ohio border to a point at or near the New Jersey border,
25 together with connecting roads, interchanges, slip ramps,
26 tunnels and bridges.
27 (3) Issue turnpike revenue bonds, notes or other
28 obligations, payable solely from revenues of the commission,
29 including tolls, or from funds as may be available to the
30 commission for that purpose, to pay the cost of constructing,
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1 reconstructing, widening, expanding or extending Interstate
2 80 or any other costs of Interstate 80 and the Pennsylvania
3 Turnpike.
4 (4) Provide quarterly reports and periodic updates
5 regarding significant developments with respect to the
6 conversion of Interstate 80 to the chairman and minority
7 chairman of the Transportation Committee of the Senate and
8 the chairman and minority chairman of the Transportation
9 Committee of the House of Representatives. These reports
10 shall include, at a minimum, the status of outstanding
11 discussions with the United States Department of
12 Transportation regarding Interstate 80, the location and
13 construction of tolling-related equipment for Interstate 80,
14 planned capital improvements for Interstate 80 and other
15 information important to implementation of this section.
16 § 8915.2. Application to United States Department of
17 Transportation.
18 (a) Application.--The commission, in consultation with the
19 department and at its own expense, is authorized to prepare and
20 submit an application to the United States Department of
21 Transportation for the conversion of Interstate 80 to a toll
22 road. The secretary shall ensure that all information required
23 for the application is made available to the commission as soon
24 as practicable after the effective date of this section.
25 (b) Open system.--A toll system shall consist of what is
26 commonly referred to as an open system with no more than ten
27 toll collection points.
28 (c) Other agreements.--The commission and the department may
29 enter into any other agreements as may be necessary to
30 effectuate the execution of the application filed under this
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1 section.
2 § 8915.3. Lease of Interstate 80; related agreements.
3 The department and the commission shall enter into a lease
4 agreement relating to Interstate 80 prior to October 15, 2007.
5 The lease agreement shall include provisions setting forth the
6 terms and conditions of the conversion of Interstate 80 to a
7 toll road. The lease agreement and any related agreement, at a
8 minimum, shall include the following:
9 (1) A provision that the term of the lease agreement
10 shall be 50 years, unless extended upon mutual agreement of
11 the parties to the lease agreement and upon approval of the
12 General Assembly.
13 (2) A provision establishing the conversion period and
14 authorizing extension of the conversion period at the sole
15 option of the commission for three one-year extension periods
16 after consultation with the secretary. The commission shall
17 notify the secretary of its intent to extend the conversion
18 period not less than 90 days before the scheduled expiration
19 of the conversion period. During the conversion period, all
20 legal, financial and operational responsibility for
21 Interstate 80 shall remain with the department. All
22 operations and programmed rehabilitation shall be maintained
23 at levels no less favorable than those set forth in the
24 department's 12-year plan at the time of the execution of the
25 lease, with modifications as are approved in writing by the
26 chairman of the commission.
27 (3) A provision permitting the commission to exercise
28 its option to convert Interstate 80 to a toll road prior to
29 the expiration of the conversion period by providing the
30 conversion notice to the secretary. Beginning on the
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1 conversion date, all legal, financial and operational
2 responsibility for Interstate 80, as well as all toll
3 revenues subsequently collected with respect to its use,
4 shall automatically transfer to the commission. The
5 secretary, within five business days after receiving the
6 conversion notice, shall forward notice of the conversion
7 date to the Legislative Reference Bureau for publication in
8 the Pennsylvania Bulletin. Any revenues collected prior to
9 the conversion date shall be retained by the department. The
10 commission may contract with the department for any portion
11 of the maintenance of Interstate 80 at cost levels agreed to
12 by the department and the commission.
13 (4) A provision requiring the commission to pay annual
14 base payments to the department during the term of the lease
15 agreement.
16 (5) A provision requiring the commission to pay annual
17 additional payments to the department. The annual additional
18 payments shall be payable in four equal installments on the
19 last business day of each July, October, January and April of
20 each year during the term of the lease agreement.
21 (6) A provision requiring the commission to pay,
22 commencing in the fiscal year including the conversion date,
23 annual surplus payments to the department. The annual surplus
24 payments shall be payable by the commission within 30 days of
25 receipt by the commission of the Auditor General's
26 certificate.
27 (7) A provision stating that the obligation of the
28 commission to pay the annual base payments, the annual
29 additional payments and annual surplus payments shall be a
30 subordinate obligation of the commission payable from amounts
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1 in the general reserve fund of the commission only as
2 permitted by any financing documents, financial covenants,
3 liquidity policies or agreements in effect at the commission.
4 § 8915.4. Initial payment.
5 (a) Commission payment required.--Within 20 days after the
6 effective date of this section, the commission shall pay to the
7 department an amount equal to $62,500,000, which shall be
8 deposited into the Public Transportation Trust Fund. The amount
9 paid shall represent 25% of the amount the department is
10 required to deposit into the Public Transportation Trust Fund
11 under 74 Pa.C.S. § 1506(b)(1)(i)(A) (relating to fund) and is
12 payable by the commission under the lease agreement.
13 (b) Use of payment.--The department shall allocate the funds
14 received under subsection (a) pursuant to 74 Pa.C.S. Ch. 15
15 (relating to sustainable mobility options).
16 (c) Credits.--The payment made by the commission under this
17 section shall be credited against the total amount payable by
18 the commission under the lease agreement for the 2007-2008
19 fiscal year.
20 § 8915.5. Other interstate highways.
21 In order to facilitate vehicular traffic across this
22 Commonwealth and pursuant to the authority granted under this
23 chapter, the commission is hereby authorized and empowered to:
24 (1) at its own expense and in consultation with the
25 department, prepare a consulting civil engineer report and
26 financial analysis with respect to the feasibility of
27 converting any interstate highway or interstate highway
28 segment to a toll road or adding to said interstates
29 additional capacity projects financed by tolls; and
30 (2) at its own expense and in consultation with the
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1 department and with approval of the General Assembly, prepare
2 and submit an application to the United States Department of
3 Transportation for the conversion of any interstate or
4 interstate segment determined to be eligible for conversion
5 to a toll road under any applicable Federal program.
6 § 8915.6. Deposit and distribution of funds.
7 (a) Deposits.--Upon receipt by the department, the following
8 amounts from the scheduled annual commission contribution shall
9 be deposited in the Motor License Fund:
10 (1) For fiscal year 2007-2008, $450,000,000.
11 (2) For fiscal year 2008-2009, $500,000,000.
12 (3) For fiscal year 2009-2010, $500,000,000.
13 (4) For fiscal year 2010-2011 and each fiscal year
14 thereafter, the amount calculated for the previous year
15 increased by 2.5%.
16 (b) Distribution.--The following shall apply:
17 (1) Annually, 15% of the amount deposited in any fiscal
18 year under subsection (a) shall be distributed at the
19 discretion of the secretary.
20 (2) Annually, $5,000,000 of the amount deposited in any
21 fiscal year under subsection (a) shall be distributed to
22 counties.
23 (i) The distribution shall be in the ratio of:
24 (A) the square footage of deck area of a
25 county's county-owned bridges; to
26 (B) the total square footage of deck area of
27 county-owned bridges throughout this Commonwealth.
28 (ii) The amount of square footage under subparagraph
29 (i) shall be that reported as part of the National Bridge
30 Inspection Standards Program.
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1 (3) Annually, $30,000,000 of the amount deposited in any
2 fiscal year under subsection (a) shall be distributed to
3 municipalities pursuant to the act of June 1, 1956 (1955
4 P.L.1944, No.655), referred to as the Liquid Fuels Tax
5 Municipal Allocation Law.
6 (4) Any funds deposited under subsection (a) but not
7 distributed under paragraphs (1), (2) and (3) shall be
8 distributed in accordance with needs-based formulas that are
9 developed and subject to periodic revision based on
10 consultation and collaboration among metropolitan planning
11 organizations, rural planning organizations and the
12 department.
13 (c) Definitions.--The following words and phrases when used
14 in this section shall have the meanings given to them in this
15 subsection unless the context clearly indicates otherwise:
16 "Metropolitan planning organization." The policy board of an
17 organization created and designated to carry out the
18 metropolitan transportation planning process.
19 "Rural planning organization." The organization of counties
20 with populations of less than 50,000 created and designated as
21 local development districts and which carry out the rural
22 transportation planning process.
23 § 8915.7. Impact on associated highways and local roads.
24 Prior to the conversion date and within one year following
25 the conversion date, the commission, in collaboration with the
26 department, shall conduct traffic studies to determine the
27 average daily traffic on associated roads and highways. The
28 purpose of these studies will be to quantify any diversion of
29 traffic from Interstate 80 to other roadways as a result of the
30 conversion. This section shall not require duplication of
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1 traffic studies undertaken by the commission as a part of the
2 conversion process or undertaken by the department as a normal
3 course of the department's operations.
4 § 8917. Financial plan.
5 (a) Submission.--
6 (1) No later than June 1 of each year, the commission
7 shall prepare and provide to the Secretary of the Budget a
8 financial plan for the ensuing fiscal year of the commission
9 that describes the commission's proposed:
10 (i) operating and capital expenditures;
11 (ii) borrowings;
12 (iii) liquidity and other financial management
13 covenants and policies;
14 (iv) estimated toll rates; and
15 (v) all other revenues and expenditures.
16 (2) The financial plan shall demonstrate that the
17 operation of the commission in accordance with the plan can
18 reasonably be anticipated to result in the commission having
19 unencumbered funds during the ensuing and future fiscal years
20 of the commission sufficient to make the payments due to the
21 department under this chapter and the lease agreement for the
22 ensuing and future fiscal years after all other obligations
23 of the commission have been met. Financial plans prepared
24 after June 1, 2008, shall also describe any deviations that
25 occurred from the financial plan for the prior fiscal year of
26 the commission and the reasons for the deviations.
27 (b) Receipt.--If the Secretary of the Budget receives the
28 financial plan by the date required under subsection (a), the
29 commission shall be authorized to conduct its operations in
30 accordance with the plan. The financial plan may not be amended
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1 by the commission unless the commission notifies the secretary
2 in writing of the amendment.
3 (c) Cooperation.--The commission shall provide to the
4 Secretary of the Budget all information requested in connection
5 with review of a financial plan, including materials used to
6 prepare the plan. The information shall be provided as soon as
7 practicable after the request.
8 (d) Effect of provisions.--Nothing in this section shall be
9 deemed to prevent the commission from conducting its normal
10 course of business or prevent the commission from complying with
11 any covenants made to current bondholders, debt holders or
12 creditors.
13 (e) Lease agreement.--The provisions of this section and
14 section 8918 (relating to failure to perform) shall be included
15 in the lease agreement.
16 § 8918. Failure to perform.
17 (a) Notice.--The Secretary of the Budget shall send written
18 notice to the commission and to the Governor of the failure of
19 the commission to do any of the following:
20 (1) Make a payment to the department under this chapter
21 or the lease agreement.
22 (2) Deliver a financial plan to the Secretary of the
23 Budget within the time prescribed under section 8917
24 (relating to financial plan).
25 (b) Unanimous vote required.--
26 (1) Except as provided under paragraph (1.1), upon the
27 receipt by the commission of the notice under subsection (a)
28 and notwithstanding any other provision of law, action of the
29 commission taken by vote of the commissioners shall require a
30 unanimous vote of all commissioners. Violation of this
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1 paragraph shall render the action invalid.
2 (1.1) A unanimous vote shall not be required if it would
3 prevent the commission from complying with any covenants made
4 to current bondholders, debt holders or creditors.
5 (2) The requirement of paragraph (1) shall continue
6 until:
7 (i) the required payments have been made to the
8 department or the required financial plan has been
9 delivered; and
10 (ii) the Secretary of the Budget has notified the
11 commission and the Governor of that fact.
12 § 9501. Definitions.
13 The following words and terms when used in this chapter shall
14 have the meanings given to them in this section unless the
15 context clearly indicates otherwise:
16 "Act 3." The act of April 17, 1997 (P.L.6, No.3), entitled,
17 "An act amending Titles 74 (Transportation) and 75 (Vehicles) of
18 the Pennsylvania Consolidated Statutes, further providing for
19 annual appropriation and computation of subsidy and for
20 distribution of funding; providing for distribution of
21 supplemental funding; further providing for use of funds
22 distributed; providing for public transportation grants
23 management accountability, for competitive procurement and for
24 the Public Transportation Assistance Fund; further providing for
25 period of registration, for duties of agents, for registration
26 and other fees, for requirements for periodic inspection of
27 vehicles, for limits on number of towed vehicles, for operation
28 of certain combinations on interstate and other highways and for
29 width and length of vehicles; providing for liquid fuels and
30 fuels permits and bond or deposit of securities, for imposition
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1 of liquid fuels and fuels tax, for taxpayer, for distributor's
2 report and payment of tax, for determination of tax, penalties
3 and interest, for examination of records and equipment, for
4 retention of records by distributors and dealers, for
5 disposition and use of tax, for discontinuance or transfer of
6 business, for suspension or revocation of permits, for lien of
7 taxes, penalties and interest, for collection of unpaid taxes,
8 for reports from common carriers, for violations and reward for
9 detection of violations, for refunds, for diesel fuel importers
10 and transporters, for prohibiting use of dyed diesel fuel, for
11 disposition of fees, fines and forfeitures, for certified copies
12 of records and for uncollectible checks; further providing for
13 distribution of State highway maintenance funds and for
14 standards and methodology for data collection; providing for
15 dirt and gravel road maintenance; further providing for
16 imposition of tax and additional tax; providing for tax on
17 alternative fuels; further providing for disposition of tax
18 revenue; making an appropriation; and making repeals."
19 "Annual debt service payments." The annual debt service
20 payments on the bonds issued under section 9511.2 (relating to
21 special revenue bonds) and payable by the commission to the
22 department as part of annual base payments as defined under
23 section 8901 (relating to definitions).
24 "Bond-related expenses." The term shall include all of the
25 following:
26 (1) Printing, publication or advertising expenses with
27 respect to the sale and issuance of bonds.
28 (2) Fees, expenses and costs of registrars.
29 (3) Fees, expenses and costs of attorneys, accountants,
30 feasibility consultants, computer programmers or other
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1 experts employed to aid in the sale and issuance of the
2 bonds.
3 (4) Other costs, fees and expenses incurred or
4 reasonably related to the issuance and sale of the bonds
5 including the funding of a debt service reserve fund.
6 "Bond-related obligation." An agreement or contractual
7 relationship between the Pennsylvania Turnpike Commission and:
8 (1) a bank, trust company, insurance company, surety
9 bonding company, pension fund or other financial institution
10 providing increased credit on or security for the bonds or
11 liquidity for secondary market transactions; or
12 (2) the counter party to a swap agreement.
13 "Commission." The Pennsylvania Turnpike Commission or any
14 successor organization.
15 "Cost of the department." The term includes the costs of all
16 of the following:
17 (1) Constructing, reconstructing, widening, expanding or
18 extending the State highway and rural State highway system
19 and connecting roads, tunnels and bridges.
20 (2) Systems of public passenger transportation or
21 portions of the systems, the placing of the systems in
22 operation and the condemnation of property necessary for
23 construction and operation of the systems.
24 (3) Lands, property rights, rights-of-way, easements and
25 franchises acquired, which are deemed necessary or convenient
26 for the construction, reconstruction, widening, expanding or
27 extending under paragraph (1) or (2).
28 (4) Machinery and equipment, financing charges, interest
29 prior to and during construction and for one year after
30 completion of construction.
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1 (5) Any of the following:
2 (i) Traffic estimates, engineering and legal
3 expenses, plans, specifications, surveys and estimates of
4 cost and of revenues.
5 (ii) Other expenses necessary or incident to
6 determining the feasibility or practicability of the
7 enterprise. This subparagraph includes administrative and
8 legal expenses.
9 (iii) Other expenses as may be necessary or incident
10 to the financing authorized under this chapter, the
11 construction, reconstruction, widening, expanding or
12 extending of the State highway and the rural State
13 highway system and connecting roads, tunnels and bridges.
14 (6) Any obligation or expense contracted for by the
15 department or with the United States or an agency of the
16 United States, for traffic surveys, preparation of plans and
17 specifications, supervision of construction and other
18 engineering, administrative and legal services and expenses
19 in connection with the construction, reconstruction,
20 widening, expanding or extending of the State highway and
21 rural State highway system or any of the connecting roads,
22 tunnels and bridges or the costs of the systems of public
23 passenger transportation or portions of the systems.
24 (7) Payment of any notes or other obligations if the
25 notes or other obligations were issued for the payment of a
26 cost of the department.
27 "Design-build arrangement." A procurement or project
28 delivery arrangement whereby a single entity, which may be a
29 single contractor or a consortium comprised of multiple
30 contractors, engineers and other subconsultants, is responsible
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1 for both the design and construction of a transportation project
2 with a guaranteed completion date and guaranteed maximum price.
3 "Pledged revenues." Annual debt service payments and
4 revenues described in 75 Pa.C.S. § 9511.11(b)(2) (relating to
5 pledged revenues).
6 "Regularly scheduled debt service." The scheduled payments
7 due for principal and interest on bonds, without regard to any
8 acceleration of the due date of such principal or interest by
9 reason of mandatory or optional redemption or acceleration
10 resulting from default or otherwise, other than an advancement
11 of payment resulting from a mandatory sinking fund payment.
12 "Rural State highway system." All roads and highways taken
13 over by the Commonwealth as State highways under the provisions
14 of the act of June 22, 1931 (P.L.594, No.203), referred to as
15 the Township State Highway Law, and all other roads and highways
16 specifically designated by the Secretary of Transportation as
17 Rural State Highways.
18 "State highway." All roads and highways taken over by the
19 Commonwealth as State highways under the provisions of any
20 statute other than the act of June 22, 1931 (P.L.594, No.203),
21 referred to as the Township State Highway Law. Unless clearly
22 intended, the term shall not include any street in any city,
23 borough or incorporated town, even though the same may have been
24 taken over as a State highway.
25 § 9511.2. Special revenue bonds.
26 (a) Payment source.--A special revenue bond, note or other
27 obligation issued under this chapter:
28 (1) shall not be deemed to be a debt or liability of the
29 Commonwealth;
30 (2) shall not create or constitute any indebtedness,
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1 liability or obligation of the Commonwealth; and
2 (3) shall be payable solely from pledged revenues.
3 (b) Statement.--A special revenue bond, note or other
4 obligation issued under this chapter must contain a statement on
5 its face that:
6 (1) the Commonwealth is not obligated to pay the bond,
7 note or obligation or the interest on it except from pledged
8 revenues; and
9 (2) neither the faith and credit, nor the taxing power
10 of the Commonwealth is pledged to the payment of the
11 principal or interest of the bond, note or obligation.
12 (c) Taxation.--The issuance of a special revenue bond, note
13 or other obligation under this chapter shall not directly,
14 indirectly or contingently obligate the Commonwealth to levy a
15 tax or to make an appropriation for payment.
16 § 9511.3. Expenses.
17 (a) Reimbursement.--The commission shall be reimbursed from
18 bond proceeds for the necessary and documented reasonable
19 expenses incurred in the performance of the duties performed
20 under the provisions of this chapter.
21 (b) Source.--All expenses incurred in carrying out the
22 provisions of this chapter shall be paid solely from funds
23 provided under the authority of this chapter, and sufficient
24 funds shall be provided under the authority of this chapter to
25 meet any liability or obligation incurred in carrying out the
26 provisions of this chapter.
27 § 9511.4. Special revenue bonds and preliminary or interim
28 financing.
29 (a) Authorization.--The commission is authorized to provide,
30 by resolution, for the issuance of special revenue bonds of the
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1 commission up to an aggregate principal amount not exceeding
2 $5,000,000,000, exclusive of original issue discount, for the
3 purpose of paying the cost of the department and bond-related
4 expenses. The resolution must recite an estimate of the cost of
5 the department. No more than $600,000,000 in aggregate principal
6 amount of special revenue bonds, exclusive of original issue
7 discount, may be issued in any calendar year. No bond may be
8 issued and outstanding under this section unless the lease
9 agreement authorized under section 8915.3 (relating to lease of
10 Interstate 80; related agreements) is in effect as of the date
11 of issuance. No bond may be outstanding beyond the term of the
12 lease. Special revenue refunding bonds as set forth in section
13 9511.9 (relating to special revenue refunding bonds) shall not
14 be deemed to count against the total or annual maximum issuance
15 volume. The principal and interest of the bond shall be payable
16 solely from pledged revenues.
17 (b) Form.--
18 (1) A bond may be issued in registered form.
19 (2) A bond:
20 (i) must be dated;
21 (ii) must bear interest at a rate not exceeding the
22 rate permitted under applicable law;
23 (iii) must be payable semiannually or at other times
24 as set forth in the resolution of the commission
25 authorizing the issuance of the bonds;
26 (iv) must mature, as determined by the commission,
27 no later than 40 years from the date of the bond; and
28 (v) may be made redeemable before maturity, at the
29 option of the commission, at a price and under terms and
30 conditions fixed by the commission prior to the issuance
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1 of the bonds.
2 (c) Issuance.--
3 (1) The commission may sell bonds at public or private
4 sale and for a price it determines to be in the best interest
5 of the Commonwealth.
6 (2) Bonds may be issued in series with varying
7 provisions as to all of the following:
8 (i) Rates of interest, which may be fixed or
9 variable.
10 (ii) Other provisions not inconsistent with this
11 chapter.
12 (d) (Reserved).
13 (e) Payment.--
14 (1) The principal and interest of the bonds may be made
15 payable in any lawful medium.
16 (2) The commission shall:
17 (i) determine the form of bonds; and
18 (ii) fix:
19 (A) the denomination of the bond; and
20 (B) the place of payment of principal and
21 interest of the bond, which may be at any bank or
22 trust company within or without this Commonwealth.
23 (f) Signature.--The bond must bear the manual or facsimile
24 signature of the Governor and of the chairman of the commission.
25 The official seal of the commission or a facsimile of the
26 official seal shall be affixed to or printed on the bond and
27 attested by the secretary and treasurer of the commission. If an
28 officer whose signature or facsimile of a signature appears on a
29 bond ceases to be an officer before the delivery of the bond,
30 the signature or facsimile shall nevertheless be valid and
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1 sufficient for all purposes as if the officer remained in office
2 until delivery.
3 (g) Negotiability.--A special revenue bond issued under this
4 chapter shall have all the qualities and incidents of a
5 negotiable instrument under 13 Pa.C.S. Div. 3 (relating to
6 negotiable instruments).
7 (h) Proceeds.--The proceeds of a bond shall be used solely
8 for the following:
9 (1) Payment of the cost of the department.
10 (2) Bond-related expenses.
11 (i) Temporary bonds.--Prior to the preparation of definitive
12 bonds, the commission may, under similar provisions as those
13 applicable to the definitive bonds, issue temporary bonds,
14 exchangeable for definitive bonds upon the issuance of
15 definitive bonds.
16 (j) (Reserved).
17 (k) Status as securities.--
18 (1) A bond is made a security in which any of the
19 following may properly and legally invest funds, including
20 capital, belonging to them or within their control:
21 (i) Commonwealth and municipal officers.
22 (ii) Commonwealth agencies.
23 (iii) Banks, bankers, savings banks, trust
24 companies, saving and loan associations, investment
25 companies and other persons carrying on a banking
26 business.
27 (iv) Insurance companies, insurance associations and
28 other persons carrying on an insurance business.
29 (v) Fiduciaries.
30 (vi) Other persons that are authorized to invest in
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1 bonds or other obligations of the Commonwealth.
2 (2) A bond is made a security which may properly and
3 legally be deposited with and received by a Commonwealth or
4 municipal officer or a Commonwealth agency for any purpose
5 for which the deposit of bonds or other obligations of the
6 Commonwealth is authorized by law.
7 (l) Borrowing.--The following shall apply:
8 (1) The commission is authorized to do all of the
9 following:
10 (i) Borrow money at an interest rate not exceeding
11 the rate permitted by law.
12 (ii) Provide for preliminary or interim financing up
13 to, but not exceeding the estimated total cost of the
14 department and bond-related expenses and to evidence the
15 borrowing by the issuance of special revenue notes and,
16 in its discretion, to pledge as collateral for the note
17 or other obligation a special revenue bond issued under
18 the provisions of this chapter. The commission may renew
19 the note or obligation, and the payment or retirement of
20 the note or obligation shall be considered to be payment
21 of the cost of the project.
22 (2) A note or obligation issued under this subsection
23 must contain a statement on its face that:
24 (i) the Commonwealth is not obligated to pay the
25 note or obligation or interest on it, except from pledged
26 revenues; and
27 (ii) neither the faith and credit nor the taxing
28 power of the Commonwealth is pledged to the payment of
29 its principal or interest.
30 § 9511.5. Application of proceeds of obligations, lien of
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1 holders of obligations, design-build requirement and
2 projects approved by General Assembly.
3 (a) Application.--The following shall apply:
4 (1) All proceeds received from any bonds, notes or other
5 obligations issued under this chapter shall be applied solely
6 to the payment of:
7 (i) the cost of the department; and
8 (ii) bond-related expenses.
9 (2) The commission may provide by resolution that until
10 proceeds received from any bonds, notes or other obligations
11 issued under this chapter is applied under paragraph (1), a
12 lien shall exist upon the proceeds in favor of holders of the
13 bonds, notes or other obligations or a trustee provided for
14 in respect to the bonds, notes or other obligations.
15 (b) Design-build arrangements.--
16 (1) To facilitate the timely completion of projects to
17 be financed by the department with bond proceeds, the
18 department may utilize design-build arrangements for each
19 project to be financed with bond proceeds if the project
20 value is estimated by the department to exceed $100,000,000.
21 (2) Notwithstanding the provisions of any other law, the
22 department may utilize design-build arrangements for the
23 following:
24 (i) projects to be financed by the department with
25 bond proceeds for projects estimated by the department to
26 have a value of $100,000,000 or less; and
27 (ii) all other construction projects of the
28 department not included under subparagraph (i) or
29 paragraph (1).
30 (3) The selection of the party for a design-build
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1 arrangement under this subsection must be conducted in a
2 manner consistent with the procurement and public bidding
3 laws applicable to the department.
4 (c) Capital projects.--All projects financed by the
5 department with bond proceeds shall be included in any
6 submission the department is already required to make to the
7 General Assembly with respect to the expenditure of funds for
8 highway projects.
9 (d) Investment.--Pending the application of proceeds to cost
10 of the department and bond-related expenses, the commission may
11 invest the funds in permitted investments as defined under any
12 trust indenture.
13 § 9511.6. Trust indenture, protection of holders of obligations
14 and depositories.
15 (a) Indenture.--In the discretion of the commission, a bond,
16 note or other obligation may be secured by a trust indenture by
17 and between the commission and a corporate trustee, which may be
18 any trust company or bank having the powers of a trust company,
19 within or without this Commonwealth.
20 (b) Pledge or assignment.--A trust indenture under
21 subsection (a) may pledge or assign the pledged revenues but
22 shall not convey or mortgage the turnpike or any part of the
23 turnpike.
24 (c) Rights and remedies.--The resolution providing for the
25 issuance of the bond, note or other obligation of the trust
26 indenture may contain provisions for protecting and enforcing
27 the rights and remedies of the bondholders or holders of notes
28 or other obligations as may be reasonable and proper and not in
29 violation of law.
30 (d) Depository.--It shall be lawful for any bank or trust
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1 company incorporated under the laws of this Commonwealth to act
2 as depository of the proceeds of the bond, note or other
3 obligation or revenue, to furnish indemnity bonds or to pledge
4 securities as may be required by the commission.
5 (e) Indenture.--The trust indenture may set forth the rights
6 and remedies of the bondholders or holders of notes or other
7 obligations and of the trustee and may restrict the individual
8 right of action of bondholders or holders of notes or other
9 obligations as is customary in trust indentures securing bonds,
10 debentures of corporations, notes or other obligations. The
11 trust indenture may contain other provisions as the commission
12 may deem reasonable and proper for the security of bondholders
13 or holders of notes or other obligations.
14 § 9511.7. Exemption from Commonwealth taxation.
15 The effectuation of the purposes of this chapter is for the
16 benefit of the citizens of this Commonwealth and for the
17 improvement of their commerce and prosperity. Since the
18 commission will be performing essential government functions in
19 effectuating these purposes, the commission shall not be
20 required to pay any tax or assessment on any property acquired
21 or used by it for the purposes provided under this chapter. A
22 bond, note or other obligation issued by the commission, its
23 transfer and the income from its issuance and transfer,
24 including any profits made on the sale of the bond, note or
25 other obligation, shall be free from taxation within the
26 Commonwealth.
27 § 9511.8. Costs related to Federal income tax matters.
28 Tax matter costs incurred by the commission in connection
29 with any proceeding of or filing with the Internal Revenue
30 Service concerning the use of proceeds of bonds issued under
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1 this chapter shall be paid or reimbursed from available funds in
2 the motor license fund. Tax matter costs shall include all of
3 the following:
4 (1) Fees of tax counsel or arbitrage rebate calculation
5 providers.
6 (2) Arbitrage rebate payments to the extent not properly
7 payable from funds held under the bond indenture.
8 (3) Settlement payments to the Internal Revenue Service,
9 either in relation to an examination initiated by the
10 Internal Revenue Service or a closing agreement requested by
11 the commission.
12 (4) Payments to bondholders as a result of claims based
13 on pending, threatened or actual assessments of tax, interest
14 or penalties by the Internal Revenue Service.
15 (5) Any other cost reasonably related to a proceeding by
16 or filing with the Internal Revenue Service concerning the
17 use of proceeds of the bonds.
18 § 9511.9. Special revenue refunding bonds.
19 The commission is authorized to provide, by resolution, for
20 the issuance of special revenue refunding bonds of the
21 commission for the purpose of refunding any special revenue
22 bonds, notes or other obligations issued under the provisions of
23 this chapter and then outstanding. The issuance of the special
24 revenue refunding bonds, the maturities and other details of the
25 bonds, the rights of the holders of the bonds and the duties of
26 the department and of the commission with respect to the bonds
27 shall be governed by the provisions of this chapter.
28 § 9511.10. Remedies of trustees and of holders of obligations.
29 (a) Grant of rights.--A holder of a bond, note or other
30 obligation issued under this chapter and the trustee under the
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1 trust indenture may, either at law or in equity, by suit,
2 action, mandamus or other proceeding, do all of the following:
3 (1) Protect and enforce any right granted under this
4 chapter or under the resolution or trust indenture.
5 (2) Enforce and compel performance of all duties
6 required under this chapter or by resolution or trust
7 indenture to be performed by the commission or any of its
8 officers, including the collection of the pledged revenues.
9 (b) Exception.--Rights given under this chapter may be
10 restricted by resolution passed before the issuance of the
11 bonds, notes or other obligations or by the trust indenture.
12 § 9511.11. Pledged revenues.
13 (a) Annual debt service payments.--Upon receipt by the
14 department of the annual debt service payments, the department
15 shall pay them to the trustee for the holders of the bonds
16 issued under section 9511.2 (relating to special revenue bonds).
17 (b) Payment default.--
18 (1) The department shall notify the State Treasurer if
19 the department receives a notice from the trustee which:
20 (i) indicates that a default in the payment by the
21 commission on its regularly scheduled deposits with
22 respect to debt service on the bonds has occurred; and
23 (ii) indicates the amount required to remedy the
24 default.
25 (2) Upon notice under paragraph (1), the State Treasurer
26 shall do all of the following:
27 (i) Notwithstanding section 9010 (relating to
28 disposition and use of tax), transfer to the trustee from
29 funds in the Motor License Fund as a result of the
30 imposition of the tax under section 9004(a) (relating to
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1 imposition of tax, exemptions and deductions) the amount
2 necessary to remedy the default under paragraph (1)(ii).
3 (ii) If funds in the Motor License Fund as a result
4 of the imposition of the tax under section 9004(a) are
5 not sufficient to remedy the default under paragraph
6 (1)(ii) and notwithstanding section 9511 (relating to
7 allocation of proceeds), transfer to the trustee from
8 funds in the Motor License Fund as a result of the
9 imposition of the tax under section 9502(a)(1), (2)(i),
10 (ii), (iii) and (iv) and (3)(ii) (relating to imposition
11 of tax), an amount necessary, when combined with any
12 funds transferred under subparagraph (i), to remedy the
13 default.
14 (iii) If funds in the Motor License Fund as a result
15 of the imposition of the tax under sections 9004(a) and
16 9502(a)(1), (2)(i), (ii), (iii) and (iv) and (3)(ii) are
17 not sufficient to remedy the default under paragraph
18 (1)(ii) and notwithstanding the provisions of section 20
19 of Act 3, transfer to the trustee from funds in the Motor
20 License Fund as a result of the imposition of fees
21 specified under sections 1912 (relating to passenger
22 cars), 1913 (relating to motor homes), 1914 (relating to
23 motorcycles), 1915 (relating to motor-driven cycles),
24 1916 (relating to trucks and truck tractors), 1917
25 (relating to motor buses and limousines), 1921 (relating
26 to special mobile equipment), 1922 (relating to
27 implements of husbandry), 1923 (relating to antique,
28 classic and collectible vehicles), 1924 (relating to farm
29 vehicles), 1925 (relating to ambulances, taxis and
30 hearses), 1926 (relating to dealers and miscellaneous
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1 motor vehicle business), 1926.1 (relating to farm
2 equipment vehicle dealers), 1927 (relating to transfer of
3 registration), 1929 (relating to replacement registration
4 plates), 1932 (relating to duplicate registration cards),
5 1933 (relating to commercial implements of husbandry) and
6 1952 (relating to certificate of title), net of amounts
7 appropriated to the commission under section 20 of Act 3,
8 an amount necessary, when combined with funds transferred
9 under subparagraphs (i) and (ii), to remedy the default.
10 (c) Commonwealth pledge.--This subsection shall operate as a
11 pledge by the Commonwealth to an individual or entity that
12 acquires a bond issued by the commission under section 9511.2:
13 (1) to secure the portion of the money described under
14 this section and distributed under this section; and
15 (2) to not limit or alter the rights vested in the
16 commission or the trustee for the bonds to the appropriation
17 and distribution of money set forth under this section.
18 § 9511.12. (Reserved).
19 § 9511.13. Supplement to other laws and liberal construction.
20 This chapter shall be regarded as supplemental and additional
21 to powers conferred by other statutes and shall not be regarded
22 as in derogation of any powers existing on the effective date of
23 this section. The provisions of this chapter, being necessary
24 for the welfare of the Commonwealth and its citizens, shall be
25 liberally construed to effect the purposes of this chapter.]
26 Section 8. (a) Financial assistance made by the Department
27 of Transportation under former 74 Pa.C.S. Ch. 82 prior to the
28 effective date of this section may continue to be used by
29 recipients for operating or capital expenses upon the same terms
30 and conditions as are contained in the notice of grant award or
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1 grant agreement executed in connection with the award.
2 (b) The Department of Transportation may continue to use all
3 funds appropriated or otherwise made available to it for public
4 transportation purposes prior to the effective date of this
5 section in accordance with the laws under which the funds were
6 made available.
7 Section 9. The following shall apply:
8 (1) The General Assembly declares that the repeal under
9 paragraph (2) is necessary to effectuate the addition of 74
10 Pa.C.S. Ch. 13.
11 (2) Sections 8 and 9 of the act of July 18, 2007
12 (P.L.169, No.44) entitled "An act amending Titles 53
13 (Municipalities Generally), 74 (Transportation) and 75
14 (Vehicles) of the Pennsylvania Consolidated Statutes,
15 providing for minority and women-owned business
16 participation; authorizing local taxation for public
17 transportation assistance; repealing provisions relating to
18 public transportation assistance; providing for
19 transportation issues and for sustainable mobility options;
20 consolidating the Turnpike Organization, Extension and Toll
21 Road Conversion Act; providing for Turnpike Commission
22 Standards of Conduct; in provisions on the Pennsylvania
23 Turnpike, further providing for definitions, for
24 authorizations and for conversion to toll roads and providing
25 for conversion of Interstate 80, for application, for lease
26 of Interstate 80, for payments, for other interstate
27 highways, for fund distribution, for impact, for financial
28 plan and for nonperformance; in taxes for highway maintenance
29 and construction, providing for definitions; further
30 providing for imposition and for allocation of proceeds;
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1 providing for special revenue bonds, for expenses, for
2 application of proceeds of obligations, for trust indenture,
3 for exemption, for pledged revenues, for special revenue
4 refunding bonds, for remedies, for Motor License Fund
5 proceeds, for construction and for funding; and making
6 related repeals."
7 Section 10. The addition of 74 Pa.C.s. Ch. 84 is a
8 continuation of former 74 Pa.C.S. Ch. 81. The following shall
9 apply:
10 (1) Except as otherwise provided under 74 Pa.C.S. Ch.
11 84, all activities initiated under former 74 Pa.C.S. Ch. 81
12 shall continue and remain in full force and effect and may be
13 completed under 74 Pa.C.S. Ch. 84. Orders, regulations, rules
14 and decisions which were made under former 74 Pa.C.S. Ch. 81
15 and which are in effect on the effective date of section 4 of
16 this act shall remain in full force and effect until revoked,
17 vacated or modified under 74 Pa.C.S. Ch. 84. Contracts,
18 obligations and collective bargaining agreements entered into
19 under former 74 Pa.C.S. Ch. 81 are not affected nor impaired
20 by the repeal of 74 Pa.C.S. Ch. 81.
21 (2) The addition of 74 Pa.C.S. Ch. 84 shall be
22 interpreted to have the same legislative intent, judicial
23 construction and administration and implementation of the
24 former act of September 30, 1985 (P.L.240, No.61), known as
25 the Turnpike Organization, Extension and Toll Road Conversion
26 Act.
27 Section 11. This act shall take effect immediately.
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