THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PALLONE, CREIGHTON, GODSHALL, HORNAMAN, JOSEPHS AND METZGAR, OCTOBER 4, 2010

REFERRED TO COMMITTEE ON TRANSPORTATION, OCTOBER 4, 2010  

AN ACT

Amending Titles 74 (Transportation) and 75 (Vehicles) of the

Pennsylvania Consolidated Statutes, providing for the

conversion of Interstate 80 to a toll road; and making

editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 1506(b)(1) and (e)(2) and 8116(a)(3) of

Title 74 of the Pennsylvania Consolidated Statutes are amended

to read:

§ 1506.  Fund.

* * *

(b)  Deposits to fund by department.--

(1)  The following apply:

(i)  Except as provided under subparagraph (ii), upon

receipt, the department shall deposit into the fund the

revenues received by the department under 75 Pa.C.S. Ch.

89 (relating to Pennsylvania Turnpike) [and the lease

agreement executed between the department and the

Pennsylvania Turnpike Commission under 75 Pa.C.S. §

8915.3 (relating to lease of Interstate 80; related

agreements)] as follows:

(A)  For fiscal year 2007-2008, $250,000,000.

(B)  For fiscal year 2008-2009, $250,000,000.

(C)  For fiscal year 2009-2010, $250,000,000.

(D)  For fiscal year 2010-2011 and each fiscal

year thereafter, the amount calculated for the

previous fiscal year[, increased by 2.5%].

(ii)  The deposits made to the fund under this

subsection shall equal $250,000,000 annually for each

fiscal year [commencing after the expiration of the

conversion period if the conversion notice is not

received by the secretary prior to expiration of the

conversion period as set forth under 75 Pa.C.S. §

8915.3(3)].

* * *

(e)  Program funding amounts.--Subject to available funds,

the programs established under this chapter shall be funded

annually as follows:

* * *

(2)  (i)  Except as provided under subparagraph (ii), for

the program established under section 1514 (relating to

asset improvement program):

(A)  By the proceeds of Commonwealth capital

bonds deposited into the fund under subsection (c)

(2).

(A.1)  For fiscal year 2007-2008, $50,000,000

from the revenues received by the department under 75

Pa.C.S. Ch. 89 [and the lease agreement executed

between the department and the Pennsylvania Turnpike

Commission under 75 Pa.C.S. § 8915.3]. The amount

received by the department under this section shall

be deposited into the fund prior to distribution and

shall be in addition to the amounts received under

subsection (b)(1).

(B)  For fiscal year 2008-2009, $100,000,000 from

the revenues received by the department under 75

Pa.C.S. Ch. 89 [and the lease agreement executed

between the department and the Pennsylvania Turnpike

Commission under 75 Pa.C.S. § 8915.3]. The amount

received by the department under this section shall

be deposited into the fund prior to distribution and

shall be in addition to the amounts received under

subsection (b)(1).

(C)  For fiscal year 2009-2010, $150,000,000 from

the revenues received by the department under 75

Pa.C.S. Ch. 89 [and the lease agreement executed

between the department and the Pennsylvania Turnpike

Commission under 75 Pa.C.S. § 8915.3]. The amount

received by the department under this section shall

be deposited into the fund prior to distribution and

shall be in addition to the amounts received under

subsection (b)(1).

(D)  For fiscal year 2010-2011 and each fiscal

year thereafter, the amount calculated for the prior

fiscal year [increased by 2.5% from the revenues]

received by the department under 75 Pa.C.S. Ch. 89

[and the lease agreement executed between the

department and the Pennsylvania Turnpike Commission

under 75 Pa.C.S. § 8915.3. The amount received by the

department under this section shall be deposited into

the fund prior to distribution and shall be in

addition to the amounts received under subsection (b)

(1)].

[(ii)  If the conversion notice is not received by

the secretary prior to the end of the conversion period

as set forth in 75 Pa.C.S. § 8915.3(3), no additional

allocation shall be made under subparagraph (i).

(3)  For the program established under section 1516

(relating to programs of Statewide significance), 13.24% of

the revenues deposited in the fund under subsection (c)(1)

shall be allocated from the fund.

(4)  For the program established under section 1517

(relating to capital improvements program), 16.77% of the

revenues deposited in the fund under subsection (c)(1).

Additional funds for this program may be provided from the

funds allocated but not distributed based on the limitation

set forth under section 1513(c)(3).]

§ 8116.  Collection and disposition of tolls and other revenue.

(a)  Establishment and changes in toll amounts.--Subject to

the terms of any trust indenture entered into by the commission

or any resolution authorizing the issuance of any bonds, notes

or other obligations of the commission, the commission is

authorized to fix and to revise tolls for the use of the

Pennsylvania Turnpike System and the different parts or sections

of the system, including the turnpike, the turnpike extensions

and improvements and the toll road conversions authorized by

this chapter. The commission is further authorized to charge and

collect tolls; to contract with any person, partnership,

association or corporation desiring the use of any part thereof,

including the right-of-way adjoining the paved portion, for

placing thereon telephone, telegraph, electric light or power

lines, gas stations, garages, stores, hotels, restaurants and

advertising signs or for any other purpose, except for service

plazas in the right-of-way along Interstate 80 and for tracks

for railroad or railway use; and to fix the terms, conditions,

rents and rates of charges for use. Tolls shall be fixed and

adjusted as to provide funds at least sufficient with other

revenues of the Pennsylvania Turnpike System, if any, to pay all

of the following:

* * *

(3)  Amounts due to the department under 75 Pa.C.S. Ch.

89 (relating to Pennsylvania Turnpike) and pursuant to the

lease agreement under 75 Pa.C.S. § [8915.3] 89A15.3 (relating

to lease of Interstate 80; related agreements).

* * *

Section 2.  Section 8901 of Title 75 is amended to read:

§ 8901.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

["Annual additional payments."  As follows:

(1)  During the conversion period and after the

conversion date, an amount equal to the scheduled annual

commission contribution, minus the sum of:

(i)  $200,000,000 paid as annual base payments;

(ii)  any Interstate 80 savings for that fiscal year.

(2)  If the conversion period has expired and a

conversion notice has not been received by the secretary, in

each subsequent fiscal year until the end of the term of the

lease agreement, the annual additional payments shall be

$250,000,000.

"Annual base payments."  An amount equal to the sum of the

following:

(1)  Annual debt service on outstanding bonds issued

under section 9511.2 (relating to special revenue bonds)

payable as required pursuant to the bonds.

(2)  Two hundred million dollars payable annually in four

equal installments each due the last business day of each

July, October, January and April.

"Annual surplus payments."  An amount equal to the general

reserve fund surplus payable for each fiscal year until the end

of the term of the lease agreement.

"Auditor General's certificate."  The certificate issued by

the Auditor General within 180 days after the end of each fiscal

year of the Pennsylvania Turnpike Commission certifying all of

the following:

(1)  The amount of the general reserve fund surplus for

the fiscal year.

(2)  After review of the commission's current ten-year

capital plan, that the transfer of the general reserve fund

surplus under section 8915.3 (relating to lease of Interstate

80; related agreements) shall not impair the ability of the

commission to meet its obligations under the lease agreement

or the commission's ten-year capital plan.]

"Commission."  The Pennsylvania Turnpike Commission.

["Conversion date."  The date set forth in the conversion

notice when the Pennsylvania Turnpike Commission intends to

exercise its option to convert Interstate 80 to a toll road.

"Conversion notice."  Written notice to the Secretary of

Transportation from the Pennsylvania Turnpike Commission

providing notice of its intent to exercise its options to

convert Interstate 80 under section 8915.3(3) (relating to lease

of Interstate 80; related agreements).

"Conversion period."  A period of three years:

(1)  which begins on the date of execution of the lease

agreement; and

(2)  during which the Pennsylvania Turnpike Commission

may give the Department of Transportation conversion notice

or notice that the commission has exercised its option to

extend the conversion period pursuant to section 8915.3(2)

(relating to lease of Interstate 80; related agreements).

"Fiscal year."  The fiscal year of the Commonwealth.

"General reserve fund surplus."  The amount which:

(1)  is certified by the Auditor General in the Auditor

General's certificate as existing in the Pennsylvania

Turnpike Commission's general reserve fund on the last day of

the fiscal year of the commission; and

(2)  is not required to be retained in the general

reserve fund pursuant to any financial documents, financial

covenants, insurance policies, liquidity policies or

agreements in effect at the commission.

"Interstate 80 savings."  An amount equal to the following:

(1)  Prior to the conversion date, the amount shall be

zero.

(2)  In the first fiscal year, including the conversion

date, the amount shall be a pro rata share of $116,985,856

calculated using the number of calendar days in the year

after the conversion date divided by 365 days.

(3)  In the fiscal year succeeding the year, including

the conversion date, the amount shall be $121,665,290.

(4)  In subsequent fiscal years, the amount shall be the

amount calculated for the previous year increased by 4%.

"Lease agreement."  A lease agreement between the Department

of Transportation and the Pennsylvania Turnpike Commission which

shall include provisions setting forth the terms of the

conversion of Interstate 80 to a toll road.

"Scheduled annual commission contribution."  The following

amounts:

(1)  $750,000,000 in fiscal year 2007-2008.

(2)  $850,000,000 in fiscal year 2008-2009.

(3)  $900,000,000 in fiscal year 2009-2010.

(4)  For fiscal year 2010-2011 and each fiscal year

thereafter, the amount shall be the amount calculated for the

previous year increased by 2.5%, except that the amount shall

be equal to the annual base payments plus $250,000,000 if the

conversion notice is not received by the secretary prior to

the expiration of the conversion period.]

Section 3.  Sections 8915.1, 8915.2, 8915.3, 8915.4, 8915.6

and 8915.7 of Title 75 are repealed:

[§ 8915.1.  Conversion of Interstate 80.

In order to facilitate vehicular traffic across this

Commonwealth, the commission is authorized and empowered to do

all of the following:

(1)  Convert Interstate 80 to a toll road and maintain

and operate it as a toll road.

(2)  Construct, reconstruct, widen, expand, extend,

maintain and operate Interstate 80 from a point at or near

the Ohio border to a point at or near the New Jersey border,

together with connecting roads, interchanges, slip ramps,

tunnels and bridges.

(3)  Issue turnpike revenue bonds, notes or other

obligations, payable solely from revenues of the commission,

including tolls, or from funds as may be available to the

commission for that purpose, to pay the cost of constructing,

reconstructing, widening, expanding or extending Interstate

80 or any other costs of Interstate 80 and the Pennsylvania

Turnpike.

(4)  Provide quarterly reports and periodic updates

regarding significant developments with respect to the

conversion of Interstate 80 to the chairman and minority

chairman of the Transportation Committee of the Senate and

the chairman and minority chairman of the Transportation

Committee of the House of Representatives. These reports

shall include, at a minimum, the status of outstanding

discussions with the United States Department of

Transportation regarding Interstate 80, the location and

construction of tolling-related equipment for Interstate 80,

planned capital improvements for Interstate 80 and other

information important to implementation of this section.

§ 8915.2.  Application to United States Department of

Transportation.

(a)  Application.--The commission, in consultation with the

department and at its own expense, is authorized to prepare and

submit an application to the United States Department of

Transportation for the conversion of Interstate 80 to a toll

road. The secretary shall ensure that all information required

for the application is made available to the commission as soon

as practicable after the effective date of this section.

(b)  Open system.--A toll system shall consist of what is

commonly referred to as an open system with no more than ten

toll collection points.

(c)  Other agreements.--The commission and the department may

enter into any other agreements as may be necessary to

effectuate the execution of the application filed under this

section.

§ 8915.3.  Lease of Interstate 80; related agreements.

The department and the commission shall enter into a lease

agreement relating to Interstate 80 prior to October 15, 2007.

The lease agreement shall include provisions setting forth the

terms and conditions of the conversion of Interstate 80 to a

toll road. The lease agreement and any related agreement, at a

minimum, shall include the following:

(1)  A provision that the term of the lease agreement

shall be 50 years, unless extended upon mutual agreement of

the parties to the lease agreement and upon approval of the

General Assembly.

(2)  A provision establishing the conversion period and

authorizing extension of the conversion period at the sole

option of the commission for three one-year extension periods

after consultation with the secretary. The commission shall

notify the secretary of its intent to extend the conversion

period not less than 90 days before the scheduled expiration

of the conversion period. During the conversion period, all

legal, financial and operational responsibility for

Interstate 80 shall remain with the department. All

operations and programmed rehabilitation shall be maintained

at levels no less favorable than those set forth in the

department's 12-year plan at the time of the execution of the

lease, with modifications as are approved in writing by the

chairman of the commission.

(3)  A provision permitting the commission to exercise

its option to convert Interstate 80 to a toll road prior to

the expiration of the conversion period by providing the

conversion notice to the secretary. Beginning on the

conversion date, all legal, financial and operational

responsibility for Interstate 80, as well as all toll

revenues subsequently collected with respect to its use,

shall automatically transfer to the commission. The

secretary, within five business days after receiving the

conversion notice, shall forward notice of the conversion

date to the Legislative Reference Bureau for publication in

the Pennsylvania Bulletin. Any revenues collected prior to

the conversion date shall be retained by the department. The

commission may contract with the department for any portion

of the maintenance of Interstate 80 at cost levels agreed to

by the department and the commission.

(4)  A provision requiring the commission to pay annual

base payments to the department during the term of the lease

agreement.

(5)  A provision requiring the commission to pay annual

additional payments to the department. The annual additional

payments shall be payable in four equal installments on the

last business day of each July, October, January and April of

each year during the term of the lease agreement.

(6)  A provision requiring the commission to pay,

commencing in the fiscal year including the conversion date,

annual surplus payments to the department. The annual surplus

payments shall be payable by the commission within 30 days of

receipt by the commission of the Auditor General's

certificate.

(7)  A provision stating that the obligation of the

commission to pay the annual base payments, the annual

additional payments and annual surplus payments shall be a

subordinate obligation of the commission payable from amounts

in the general reserve fund of the commission only as

permitted by any financing documents, financial covenants,

liquidity policies or agreements in effect at the commission.

§ 8915.4.  Initial payment.

(a)  Commission payment required.--Within 20 days after the

effective date of this section, the commission shall pay to the

department an amount equal to $62,500,000, which shall be

deposited into the Public Transportation Trust Fund. The amount

paid shall represent 25% of the amount the department is

required to deposit into the Public Transportation Trust Fund

under 74 Pa.C.S. § 1506(b)(1)(i)(A) (relating to fund) and is

payable by the commission under the lease agreement.

(b)  Use of payment.--The department shall allocate the funds

received under subsection (a) pursuant to 74 Pa.C.S. Ch. 15 

(relating to sustainable mobility options).

(c)  Credits.--The payment made by the commission under this

section shall be credited against the total amount payable by

the commission under the lease agreement for the 2007-2008

fiscal year.

§ 8915.6.  Deposit and distribution of funds.

(a)  Deposits.--Upon receipt by the department, the following

amounts from the scheduled annual commission contribution shall

be deposited in the Motor License Fund:

(1)  For fiscal year 2007-2008, $450,000,000.

(2)  For fiscal year 2008-2009, $500,000,000.

(3)  For fiscal year 2009-2010, $500,000,000.

(4)  For fiscal year 2010-2011 and each fiscal year

thereafter, the amount calculated for the previous year

increased by 2.5%.

(b)  Distribution.--The following shall apply:

(1)  Annually, 15% of the amount deposited in any fiscal

year under subsection (a) shall be distributed at the

discretion of the secretary.

(2)  Annually, $5,000,000 of the amount deposited in any

fiscal year under subsection (a) shall be distributed to

counties.

(i)  The distribution shall be in the ratio of:

(A)  the square footage of deck area of a

county's county-owned bridges; to

(B)  the total square footage of deck area of

county-owned bridges throughout this Commonwealth.

(ii)  The amount of square footage under subparagraph

(i) shall be that reported as part of the National Bridge

Inspection Standards Program.

(3)  Annually, $30,000,000 of the amount deposited in any

fiscal year under subsection (a) shall be distributed to

municipalities pursuant to the act of June 1, 1956 (1955

P.L.1944, No.655), referred to as the Liquid Fuels Tax

Municipal Allocation Law.

(4)  Any funds deposited under subsection (a) but not

distributed under paragraphs (1), (2) and (3) shall be

distributed in accordance with needs-based formulas that are

developed and subject to periodic revision based on

consultation and collaboration among metropolitan planning

organizations, rural planning organizations and the

department.

(c)  Definitions.--The following words and phrases when used

in this section shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Metropolitan planning organization."  The policy board of an

organization created and designated to carry out the

metropolitan transportation planning process.

"Rural planning organization."  The organization of counties

with populations of less than 50,000 created and designated as

local development districts and which carry out the rural

transportation planning process.

§ 8915.7.  Impact on associated highways and local roads.

Prior to the conversion date and within one year following

the conversion date, the commission, in collaboration with the

department, shall conduct traffic studies to determine the

average daily traffic on associated roads and highways. The

purpose of these studies will be to quantify any diversion of

traffic from Interstate 80 to other roadways as a result of the

conversion. This section shall not require duplication of

traffic studies undertaken by the commission as a part of the

conversion process or undertaken by the department as a normal

course of the department's operations.]

Section 4.  Sections 8917(a)(2) and (e) and 8918(a)(1) of

Title 75 are amended to read:

§ 8917.  Financial plan.

(a)  Submission.--

* * *

(2)  The financial plan shall demonstrate that the

operation of the commission in accordance with the plan can

reasonably be anticipated to result in the commission having

unencumbered funds during the ensuing and future fiscal years

of the commission sufficient to make the payments due to the

department under this chapter and the lease agreement under

section 89A15.3 (related to lease of Interstate 80; related

agreements) for the ensuing and future fiscal years after all

other obligations of the commission have been met. Financial

plans prepared after June 1, 2008, shall also describe any

deviations that occurred from the financial plan for the

prior fiscal year of the commission and the reasons for the

deviations.

* * *

[(e)  Lease agreement.--The provisions of this section and

section 8918 (relating to failure to perform) shall be included

in the lease agreement.]

§ 8918.  Failure to perform.

(a)  Notice.--The Secretary of the Budget shall send written

notice to the commission and to the Governor of the failure of

the commission to do any of the following:

(1)  Make a payment to the department under this chapter

or the lease agreement under section 89A15.3 (related to

lease of Interstate 80; related agreements).

* * *

Section 5.  Title 75 is amended by adding a chapter to read:

CHAPTER 89A

2010 CONVERSION OF INTERSTATE 80

TO TOLL ROAD

Sec.

89A01.  Definitions.

89A02.  (Reserved).

89A03.  (Reserved).

89A04.  (Reserved).

89A05.  (Reserved).

89A06.  (Reserved).

89A07.  (Reserved).

89A08.  (Reserved).

89A09.  (Reserved).

89A10.  (Reserved).

89A11.  (Reserved).

89A12.  (Reserved).

89A13.  (Reserved).

89A14.  (Reserved).

89A15.  (Reserved).

89A15.1.  Conversion of Interstate 80.

89A15.2.  Application to United States Department of

Transportation.

89A15.3.  Lease of Interstate 80; related agreements.

89A15.4.  (Reserved).

89A15.5.  (Reserved).

89A15.6.  Deposit and distribution of funds.

89A15.7.  Impact on associated highways and local roads.

§ 89A01.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Auditor General's certificate."  The certificate issued by

the Auditor General within 180 days after the end of each fiscal

year of the Pennsylvania Turnpike Commission's certifying all of

the following:

(1)  The amount of the general reserve fund surplus for

the fiscal year.

(2)  After review of the commission's current ten-year

capital plan, that the transfer of the general reserve fund

surplus under section 89A15.3 (relating to lease of

Interstate 80; related agreements) shall not impair the

ability of the commission to meet its obligations under the

lease agreement or the commission's ten-year capital plan.

"Commission."  The Pennsylvania Turnpike Commission.

"Conversion date."  The date set forth in the conversion

notice when the Pennsylvania Turnpike Commission intends to

exercise its option to convert Interstate 80 to a toll road.

"Conversion notice."  Written notice to the Secretary of

Transportation from the Pennsylvania Turnpike Commission

providing notice of its intent to exercise its options to

convert Interstate 80 under section 89A15.3(3) (relating to

lease of Interstate 80; related agreements).

"Conversion period."  A period of three years:

(1)  which begins on the date of execution of the lease

agreement; and

(2)  during which the Pennsylvania Turnpike Commission

may give the Department of Transportation conversion notice

or notice that the commission has exercised its option to

extend the conversion period pursuant to section 89A15.3(2)

(relating to lease of Interstate 80; related agreements).

"Fiscal year."  The fiscal year of the Commonwealth.

"General reserve fund surplus."  The amount which:

(1)  is certified by the Auditor General in the Auditor

General's certificate as existing in the Pennsylvania

Turnpike Commission's general reserve fund on the last day of

the fiscal year of the commission; and

(2)  is not required to be retained in the general

reserve fund pursuant to any financial documents, financial

covenants, insurance policies, liquidity policies or

agreements in effect at the commission.

"Lease agreement."  A lease agreement between the Department

of Transportation and the Pennsylvania Turnpike Commission which

shall include provisions setting forth the terms of the

conversion of Interstate 80 to a toll road.

"Scheduled annual commission contribution."  The annual

payment of $450,000,000 made by the commission to the

department.

§ 89A02.  (Reserved).

§ 89A03.  (Reserved).

§ 89A04.  (Reserved).

§ 89A05.  (Reserved).

§ 89A06.  (Reserved).

§ 89A07.  (Reserved).

§ 89A08.  (Reserved).

§ 89A09.  (Reserved).

§ 89A10.  (Reserved).

§ 89A11.  (Reserved).

§ 89A12.  (Reserved).

§ 89A13.  (Reserved).

§ 89A14.  (Reserved).

§ 89A15.  (Reserved).

§ 89A15.1.  Conversion of Interstate 80.

In order to facilitate vehicular traffic across this

Commonwealth, the commission is authorized and empowered to do

all of the following:

(1)  Convert Interstate 80 to a toll road and maintain

and operate it as a toll road.

(2)  Construct, reconstruct, widen, expand, extend,

maintain and operate Interstate 80 from a point at or near

the Ohio border to a point at or near the New Jersey border,

together with connecting roads, interchanges, slip ramps,

tunnels and bridges.

(3)  Issue turnpike revenue bonds, notes or other

obligations, payable solely from revenues of the commission,

including tolls, or from funds as may be available to the

commission for that purpose, to pay the cost of constructing,

reconstructing, widening, expanding or extending Interstate

80 or any other costs of Interstate 80 and the Pennsylvania

Turnpike.

(4)  Provide quarterly reports and periodic updates

regarding significant developments with respect to the

conversion of Interstate 80 to the chairman and minority

chairman of the Transportation Committee of the Senate and

the chairman and minority chairman of the Transportation

Committee of the House of Representatives. These reports

shall include, at a minimum, the status of outstanding

discussions with the United States Department of

Transportation regarding Interstate 80, the location and

construction of tolling-related equipment for Interstate 80,

planned capital improvements for Interstate 80 and other

information important to implementation of this section.

§ 89A15.2.  Application to United States Department of

Transportation.

(a)  Application.--The commission, in consultation with the

department and at its own expense, is authorized to prepare and

submit an application to the United States Department of

Transportation for the conversion of Interstate 80 to a toll

road. The secretary shall ensure that all information required

for the application is made available to the commission as soon

as practicable after the effective date of this section.

(b)  Open system.--A toll system shall consist of what is

commonly referred to as an open system with no more than ten

toll collection points.

(c)  Other agreements.--The commission and the department may

enter into any other agreements as may be necessary to

effectuate the execution of the application filed under this

section.

§ 89A15.3.  Lease of Interstate 80; related agreements.

The department and the commission shall enter into a lease

agreement relating to Interstate 80. The lease agreement shall

include provisions setting forth the terms and conditions of the

conversion of Interstate 80 to a toll road. The lease agreement

and any related agreement, at a minimum, shall include the

following:

(1)  A provision that the term of the lease agreement

shall be 50 years, unless extended upon mutual agreement of

the parties to the lease agreement and upon approval of the

General Assembly.

(2)  A provision establishing the conversion period and

authorizing extension of the conversion period at the sole

option of the commission for three one-year extension periods

after consultation with the secretary. The commission shall

notify the secretary of its intent to extend the conversion

period not less than 90 days before the scheduled expiration

of the conversion period. During the conversion period, all

legal, financial and operational responsibility for

Interstate 80 shall remain with the department. All

operations and programmed rehabilitation shall be maintained

at levels no less favorable than those set forth in the

department's 12-year plan at the time of the execution of the

lease, with modifications as are approved in writing by the

chairman of the commission.

(3)  A provision permitting the commission to exercise

its option to convert Interstate 80 to a toll road prior to

the expiration of the conversion period by providing the

conversion notice to the secretary. Beginning on the

conversion date, all legal, financial and operational

responsibility for Interstate 80, as well as all toll

revenues subsequently collected with respect to its use,

shall automatically transfer to the commission. The

secretary, within five business days after receiving the

conversion notice, shall forward notice of the conversion

date to the Legislative Reference Bureau for publication in

the Pennsylvania Bulletin. Any revenues collected prior to

the conversion date shall be retained by the department. The

commission may contract with the department for any portion

of the maintenance of Interstate 80 at cost levels agreed to

by the department and the commission.

(4)  A provision requiring the commission to pay annual

base payments to the department during the term of the lease

agreement.

(5)  A provision stating that the obligation of the

commission to pay the annual base payments shall be a

subordinate obligation of the commission payable from amounts

in the general reserve fund of the commission only as

permitted by any financing documents, financial covenants,

liquidity policies or agreements in effect at the commission.

(6)  The provisions of sections 8917 (relating to

financial plan) and 8918 (relating to failure to perform).

§ 89A15.4.  (Reserved).

§ 89A15.5.  (Reserved).

§ 89A15.6.  Deposit and distribution of funds.

(a)  Deposits.--For fiscal year 2010-2011 and each fiscal

year thereafter during which the lease under section 89A15.3

(relating to lease of Interstate 80; related agreements) is in

existence, upon receipt by the department, the following amounts

from the scheduled annual commission contribution shall be

deposited as follows:

(1)  $200,000,000 into the Motor License Fund.

(2)  $250,000,000 into the Public Transportation Trust

Fund.

(b)  Distribution.--The following shall apply:

(1)  Annually, 15% of the amount deposited in any fiscal

year under subsection (a) shall be distributed at the

discretion of the secretary.

(2)  Annually, $5,000,000 of the amount deposited in any

fiscal year under subsection (a) shall be distributed to

counties:

(i)  The distribution shall be in the ratio of:

(A)  the square footage of deck area of a

county's county-owned bridges; to

(B)  the total square footage of deck area of

county-owned bridges throughout this Commonwealth.

(ii)  The amount of square footage under subparagraph

(i) shall be that reported as part of the National Bridge

Inspection Standards Program.

(3)  Annually, $30,000,000 of the amount deposited in any

fiscal year under subsection (a) shall be distributed to

municipalities pursuant to the act of June 1, 1956 (1955

P.L.1944, No.655), referred to as the Liquid Fuels Tax

Municipal Allocation Law.

(4)  Any funds deposited under subsection (a) but not

distributed under paragraphs (1), (2) and (3) shall be

distributed in accordance with needs-based formulas that are

developed and subject to periodic revision based on

consultation and collaboration among metropolitan planning

organizations, rural planning organizations and the

department.

(c)  Definitions.--The following words and phrases when used

in this section shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Metropolitan planning organization."  The policy board of an

organization created and designated to carry out the

metropolitan transportation planning process.

"Rural planning organization."  The organization of counties

with populations of less than 50,000 created and designated as

local development districts and which carry out the rural

transportation planning process.

§ 89A15.7.  Impact on associated highways and local roads.

Prior to the conversion date and within one year following

the conversion date, the commission, in collaboration with the

department, shall conduct traffic studies to determine the

average daily traffic on associated roads and highways. The

purpose of these studies will be to quantify any diversion of

traffic from Interstate 80 to other roadways as a result of the

conversion. This section shall not require duplication of

traffic studies undertaken by the commission as a part of the

conversion process or undertaken by the department as a normal

course of the department's operations.

Section 6.  The definition of "annual debt service payments"

in section 9501 of Title 75 is amended to read:

§ 9501.  Definitions.

The following words and terms when used in this chapter shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Annual debt service payments."  The annual debt service

payments on the bonds issued under section 9511.2 (relating to

special revenue bonds) and payable by the commission to the

department [as part of annual base payments as defined under

section 8901 (relating to definitions)].

* * *

Section 7.  Section 9511.4(a) of Title 75 is amended to read:

§ 9511.4.  Special revenue bonds and preliminary or interim

financing.

(a)  Authorization.--The commission is authorized to provide,

by resolution, for the issuance of special revenue bonds of the

commission up to an aggregate principal amount not exceeding

$5,000,000,000, exclusive of original issue discount, for the

purpose of paying the cost of the department and bond-related

expenses. The resolution must recite an estimate of the cost of

the department. No more than $600,000,000 in aggregate principal

amount of special revenue bonds, exclusive of original issue

discount, may be issued in any calendar year. No bond may be

issued and outstanding under this section unless the lease

agreement authorized under section [8915.3] 89A15.3 (relating to

lease of Interstate 80; related agreements) is in effect as of

the date of issuance. No bond may be outstanding beyond the term

of the lease. Special revenue refunding bonds as set forth in

section 9511.9 (relating to special revenue refunding bonds)

shall not be deemed to count against the total or annual maximum

issuance volume. The principal and interest of the bond shall be

payable solely from pledged revenues.

* * *

Section 8.  This act shall take effect in 60 days.