PRIOR PRINTER'S NOS. 336, 438, 1786

PRINTER'S NO.  1847

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

344

Session of

2011

  

  

INTRODUCED BY RAFFERTY, SCARNATI, PILEGGI, D. WHITE, YAW, ORIE, ERICKSON, BAKER, FONTANA, PIPPY, BRUBAKER, ALLOWAY, BOSCOLA, WAUGH, MENSCH, EICHELBERGER, GORDNER, M. WHITE, EARLL AND BROWNE, FEBRUARY 1, 2011

  

  

SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, DECEMBER 12, 2011   

  

  

  

AN ACT

  

1

Amending Title 74 (Transportation) of the Pennsylvania

2

Consolidated Statutes, providing for public-private

3

transportation partnerships; and making a related repeal.

4

The General Assembly of the Commonwealth of Pennsylvania

5

hereby enacts as follows:

6

Section 1.  Title 74 of the Pennsylvania Consolidated

7

Statutes is amended by adding a part to read:

8

PART V

9

TRANSPORTATION INFRASTRUCTURE

10

Chapter

11

91.  Public-Private Transportation Partnership

12

CHAPTER 91

13

PUBLIC-PRIVATE TRANSPORTATION PARTNERSHIP

14

Sec.

15

9101.  Scope of chapter.

16

9102.  Findings and declaration of policy.

17

9103.  Definitions.

 


1

9104.  Public-Private Transportation Partnership Board.

2

9105.  Duties of board.

3

9106.  Operation of board.

4

9107.  Solicitations for transportation projects.

5

9108.  Transportation projects.

6

9109.  Requests.

7

9110.  Selection of development entities.

8

9111.  Public-private transportation partnership agreement.

9

9112.  Records of requests.

10

9113.  Use of intellectual property.

11

9114.  Police powers and violations of law.

12

9115.  Environmental and other authorizations.

13

9116.  Taxation of development entity.

14

9117.  Power of eminent domain.

15

9118.  Sovereign immunity.

16

9119.  Specific performance.

17

9120.  Additional provisions.

<--

18

9120.  Applicability of other laws.

<--

19

9121.  Adverse interest.

20

9122.  Federal, State, local and private assistance.

21

9123.  Public-Private Transportation Account.

22

9124.  Pennsylvania Turnpike Commission.

23

9125.  Regulations.

24

§ 9101.  Scope of chapter.

25

This chapter relates to public-private transportation

26

partnerships.

27

§ 9102.  Findings and declaration of policy.

28

(a)  Legislative findings and declarations.--The General

29

Assembly finds, determines and declares as follows:

30

(1)  There is urgent public need to reduce congestion,

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1

increase capacity, improve safety and enhance economic

2

efficiency of transportation facilities throughout this

3

Commonwealth.

4

(2)  The public entities have limited resources to fund

5

the maintenance and expansion of their respective

6

transportation facilities.

7

(3)  To ensure the needs of the public are adequately

8

addressed, alternative funding mechanisms and strategies must

9

be developed to supplement existing public revenue sources.

10

(4)  The imposition of user fees establishes an

11

additional funding source for transportation infrastructure

12

needs that spreads the costs across those who most benefit

13

from the Commonwealth's system of roads, highways and

14

bridges.

15

(5)  The imposition of user fees and the development,

16

operation, maintenance, construction and improvement of toll

17

roads is a proprietary function which may be delegated to a

18

private entity consistent with section 31 of Article III of

19

the Constitution of Pennsylvania.

20

(6)  Authorizing public entities to enter into

21

transportation partnership agreements with private entities

22

and other public entities for the development, operation and

23

financing of transportation facilities can result in greater

24

availability of transportation facilities to the public in a

25

timely, efficient and less costly fashion, thereby serving

26

the public safety and welfare.

27

(7)  Assuring that public-private transportation projects

28

are developed, operated and financed in a cost-effective

29

manner is an important factor in promoting the health, safety

30

and welfare of the citizens of this Commonwealth.

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1

(b)  Intent.--It is the intent of this chapter:

2

(1)  To encourage private entities to invest in this

3

Commonwealth by participating in the development, operation

4

or financing of transportation facilities.

5

(2)  To provide public entities and private entities with

6

the authority and flexibility in contracting for the

7

development, operation and financing of transportation

8

facilities.

9

(3)  To authorize public entities to contract with

10

private and other public entities to provide transportation

11

facilities and related services.

12

§ 9103.  Definitions.

13

The following words and phrases when used in this chapter

14

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

15

context clearly indicates otherwise:

16

"Account."  The Public-Private Transportation Account.

17

"Board."  The Public-Private Transportation Partnership

18

Board.

19

"Department."  The Department of Transportation of the

20

Commonwealth.

21

"Development entity."  An entity which is a party to a

22

public-private transportation partnership agreement and which is

23

any of the following:

24

(1)  A private entity.

25

(2)  A public entity, other than the public entity

26

providing or improving its own transportation facilities.

27

"Electronic toll."  A system of collecting tolls or charges

28

which is capable of charging an account holder for the

29

prescribed toll by electronic transmission of information. The

30

term includes open road tolls, video tolls or other similar

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1

structural or technological enhancements pertaining to tolls.

2

"Offeror."  A person that submits a proposal or a response in

3

answer to a request for proposals or transportation projects.

4

"Private entity."  A person, entity, group or organization

5

that is not the Federal Government, the Commonwealth or a

6

municipal authority.

7

"Proprietary public entity."  A public entity which owns a

8

public-private transportation project and which is a party to a

9

public-private transportation partnership agreement.

10

"Public entity."  The Commonwealth or a municipal authority, 

<--

11

a municipal authority or an authority created by statute which

12

owns a transportation facility. The term includes the

<--

13

Pennsylvania Turnpike Commission. The term does not include the

14

General Assembly and its members, officers or agencies or any

15

court or other office or agency of the Pennsylvania judicial

16

system.

17

"Public-private transportation partnership agreement."  A

18

contract for a transportation project which transfers the rights

19

for the use or control, in whole or in part, of a transportation

20

facility by a public entity to a development entity for a

21

definite term during which the development entity will provide

22

the transportation project to the public entity in return for

23

the right to receive all or a portion of the revenue generated

24

from the use of the transportation facility, or other payment,

25

such as the following transportation-related services:

26

(1)  Operations and maintenance.

27

(2)  Revenue collection.

28

(3)  User fee collection or enforcement.

29

(4)  Design.

30

(5)  Construction.

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1

(6)  Development and other activities with respect to

2

existing or new transportation facilities that enhance

3

traffic throughput, reduce congestion, improve safety or

4

otherwise manage or improve a transportation facility.

5

(7)  Financing.

6

"Public-private transportation project."  A transportation

7

project undertaken by a development entity pursuant to a public-

8

private transportation partnership agreement.

9

"Request for transportation projects."  A solicited or

<--

10

unsolicited plan for a transportation project submitted to the

11

board by a public entity.

12

"Responsible offeror."  An offeror that has submitted a

13

responsive proposal and that possesses the capability to fully

14

perform the public-private transportation partnership agreement

15

requirements in all respects and the integrity and reliability

16

to assure good faith performance.

17

"Responsive proposal."  A proposal that conforms in all

18

material aspects to the requirements and criteria in the request

19

for proposals.

20

"Right-to-Know Law."  The act of February 14, 2008 (P.L.6,

<--

21

No.3), known as the Right-to-Know Law.

22

"State Adverse Interest Act."  The act of July 19, 1957

23

(P.L.1017, No.451), known as the State Adverse Interest Act.

24

"Transportation facility."  A proposed or existing road,

25

bridge, tunnel, overpass, ferry, busway, guideway, public

26

transportation facility, vehicle parking facility, port

27

facility, multimodal transportation facility, airport, station,

28

hub, terminal or similar facility used or to be used for the

29

transportation of persons, animals or goods, together with any

30

buildings, structures, parking areas, appurtenances, intelligent

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1

transportation systems and other property needed to operate or

<--

2

related to the operation of the transportation facility. The

3

term includes any improvements or substantial enhancements or

4

modifications to an existing transportation facility.

5

"Transportation project."  An undertaking by a private entity

6

or a public entity, other than the public entity providing or

7

improving its own transportation facilities, to provide or

8

improve a transportation facility or transportation-related

9

service which is totally or partially located within this

10

Commonwealth.

11

§ 9104.  Public-Private Transportation Partnership Board.

12

(a)  Establishment.--There is established a board to be known

13

as the Public-Private Transportation Partnership Board.

14

(b)  Composition.--The board shall be composed of the

15

following members:

16

(1)  The Secretary of Transportation, who shall be the

17

chairperson of the board, or a designee who shall be an

18

employee of the department.

19

(2)  The Secretary of the Budget or a designee who shall

20

be an employee of the Office of the Budget.

21

(3)  Four members appointed by the General Assembly under

22

subsection (c).

23

(4)  One member appointed by the Governor under

24

subsection (d).

25

(c)  Legislative appointments.--

26

(1)  Appointments of members by the General Assembly

27

shall be made as follows:

28

(i)  One individual appointed by the President pro

29

tempore of the Senate.

30

(ii)  One individual appointed by the Minority Leader

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1

of the Senate.

2

(iii)  One individual appointed by the Speaker of the

3

House of Representatives.

4

(iv)  One individual appointed by the Minority Leader

5

of the House of Representatives.

6

(2)  Legislative appointees shall be residents of this

<--

7

Commonwealth and serve at the pleasure of the appointing

8

authority.

9

(3)  Legislative appointees shall have expertise or

10

substantial experience in one or more of the following areas:

11

(i)  Transportation.

12

(ii)  Finance.

13

(iii)  Law.

14

(iv)  Land use and public planning.

15

(d)  Gubernatorial appointment.--A member appointed under

16

subsection (b)(4):

17

(1)  May not hold any other position as an elected

18

official or employee of the Commonwealth.

19

(2)  Shall be a resident of this Commonwealth and have

<--

20

expertise or substantial experience in one or more of the

21

following areas:

22

(i)  Transportation.

23

(ii)  Finance.

24

(iii)  Law.

25

(iv)  Land use and public planning.

26

(3)  Shall serve at the pleasure of the Governor.

27

(e)  Quorum.--Five members of the board shall constitute a

28

quorum. The adoption of a resolution or other action of the

29

board shall require a majority vote of the members of the board.

30

(f)  Compensation.--The members of the board shall be

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1

entitled to no compensation for their services as members of the

2

board but shall be entitled to reimbursement by the department

3

for all necessary and reasonable expenses incurred in connection

4

with the performance of their duties as members of the board.

5

(g)  Initial appointment and vacancy.--Appointing authorities

6

shall appoint initial board members within 30 days of the

7

effective date of this section. Whenever a vacancy occurs on the

8

board, the appointing authority shall appoint a successor member

9

within 30 days of the vacancy.

10

(h)  Financial interests.--No member of the board, during his

11

term of office shall directly or indirectly own, have any

12

significant financial interest in, be associated with or receive

13

any fee, commission, compensation or anything of value from any

14

public entity or private entity seeking to engage in a public-

15

private transportation partnership agreement.

16

(i)  Applicability.--The following acts shall apply to the

17

board:

18

(1)  The Right-to-Know Law.

<--

19

(1)  The act of February 14, 2008 (P.L.6, No.3), known as

<--

20

the Right-to-Know Law.

21

(2)  The State Adverse Interest Act.

22

(3)  The provisions of 65 Pa.C.S. Chs. 7 (relating to

23

open meetings) and 11 (relating to ethics standards and

24

financial disclosure).

25

§ 9105.  Duties of board.

26

(a)  Duties.--The board shall do all of the following:

27

(1)  Meet as often as necessary but at least annually.

28

(2)  Adopt guidelines establishing the procedure by which

29

a public entity may submit a request for a transportation

30

project or a private entity may submit an unsolicited plan

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1

for a transportation project to the board.

2

(3)  Consult with persons affected by proposed

3

transportation projects.

4

(4)  Evaluate and, where the board finds that the

5

requests or plans for transportation projects are in the best

6

interests of the Commonwealth and a public entity, approve

7

the requests or plans for transportation projects. The board

8

shall approve a proposed transportation project by adopting a

9

resolution.

10

(5)  Submit an annual report to the General Assembly

11

detailing all transportation projects evaluated and

12

resolutions adopted.

13

(b)  Actions.--Actions by the board are a determination of

14

public policy and public interest and shall not be considered

15

adjudications under 2 Pa.C.S. Chs. 5 Subch. A (relating to

16

practice and procedure of Commonwealth agencies) and 7 Subch. A

17

(relating to judicial review of Commonwealth agency action) and

18

shall not be appealable to the department or a court of law.

19

(c)  General Assembly.--The following shall apply:

20

(1)  The General Assembly may, within 30 20 calendar days

<--

21

or 12 nine legislative days, whichever is longer, of the

<--

22

adoption of the resolution under subsection (a)(4), pass a

23

concurrent resolution rescinding the approval of a

24

transportation project if the transportation facility which

25

is the subject of the transportation project is owned by the

26

Commonwealth.

27

(2)  If the General Assembly adopts the concurrent

28

resolution within the time period under paragraph (1) by

29

majority vote in both the Senate and the House of

30

Representatives, the transportation project shall be deemed

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1

disapproved.

2

(3)  If the General Assembly fails to adopt the

3

concurrent resolution by majority vote in both the Senate and

4

the House of Representatives within the time period under

5

paragraph (1), the transportation project shall be deemed

6

approved.

7

§ 9106.  Operation of board.

8

(a)  Technical assistance.--The department shall supply all

9

necessary assistance to assist the board in carrying out its

10

duties and responsibilities, including retention of legal,

11

financial and technical consultants to assist with this role.

12

(b)  Analysis.--The department shall develop a detailed

13

analysis of a request or recommendation prior to approval by the

14

board.

15

(c)  Oversight.--If a transportation project becomes a

16

public-private transportation project, the department shall

17

retain oversight and monitor the public-private transportation

18

project, including periodic reports to the board, as necessary.

19

§ 9107.  Solicitations for transportation projects.

20

A public entity may solicit transportation projects through a

21

request for transportation projects. The public entity shall

22

give public notice of a request for transportation projects

23

consistent with section 9110(c) (relating to selection of

24

development entities). Offerors shall submit their responses to

25

the public entity in the form and manner required by the request

26

for transportation projects. A public entity shall evaluate each

27

response to determine if the response is in the best interest of

28

the public entity. Upon being satisfied, the public entity may

29

prepare and submit a request to the board to review the

30

transportation project in accordance with this chapter.

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1

§ 9108.  Transportation projects.

2

(a)  Submission.--Except as provided under subsection (b), a

3

public entity which seeks to undertake a transportation project

4

which has not been previously approved by the board shall submit

5

a request for the transportation project to the board.

6

(b)  Exception.--This section shall not apply to a

<--

7

transportation project which a public entity is authorized to

8

undertake prior to the effective date of this subsection.

9

(b)  Exception.--This chapter shall not apply to a

<--

10

transportation project which a public entity is authorized under

11

law to undertake on the effective date of this subsection.

12

§ 9109.  Requests.

13

A request may be solicited or unsolicited and may provide for

14

the development or operation of transportation facilities using

15

a variety of project delivery methods and forms of agreement.

16

The methods may include:

17

(1)  Predevelopment agreements leading to other

18

implementing agreements.

19

(2)  A design-build agreement.

20

(3)  A design-build-operate agreement.

21

(4)  A design-build-maintain agreement.

22

(5)  A design-build-finance-operate agreement.

23

(6)  A design-build-operate-maintain agreement.

24

(7)  A design-build-finance-operate-maintain agreement.

25

(8)  An operate-maintain agreement.

26

(9)  A concession providing for the development entity to

27

design, build, operate, maintain, manage or lease a

28

transportation facility.

29

(10)  Any other innovative or nontraditional project

30

delivery method or agreement or combination of methods or

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1

agreements that the public entity determines will address the

2

transportation needs of the Commonwealth and the public

3

entity and serve the public interest.

4

§ 9110.  Selection of development entities.

5

(a)  Conditions for use.--If a transportation project is

6

approved under section 9105 (relating to duties of board), the

7

public entity may enter into a contract for the transportation

8

project by competitive sealed proposals.

9

(b)  Request for proposals.--After receiving the

10

determination required by subsection (a), a public entity shall

11

solicit proposals through a request for proposals.

12

(c)  Public notice.--A public entity shall give public notice

13

of a request for proposals consistent with regulations adopted

14

by the department. The notice shall be given a reasonable time

15

prior to the date set for the close of receipt of the proposals.

16

The method of public notice may include any of the following:

17

(1)  Electronic publication which is accessible to the

18

general public.

19

(2)  Advertisement as provided for in 45 Pa.C.S. § 306

20

(relating to use of trade publications).

21

(3)  Issuance of request for proposals to offerors on the

22

mailing list of the public entity.

23

(4)  Publication in a newspaper of general circulation.

24

(5)  Where prequalification is a requirement of

25

submitting a proposal, notification to all private entities

26

who have been prequalified by the public entity.

27

(d)  Copies of request for proposal.--Copies of a request for

28

proposals shall be made available to any interested person upon

29

request to the public entity. A public entity may establish

30

procedures for the distribution of a request for proposals,

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1

including the imposition of a fee to reimburse the public entity

2

for the costs of photocopying and mailing.

3

(e)  Receipt of proposals.--Offerors shall submit their

4

proposals to ensure that their proposals are received prior to

5

the time and date established for receipt of the proposals.

6

Proposals shall be submitted in the format required by the

7

request for proposals. Proposals shall be opened so as to avoid

8

disclosure of their contents to competing offerors.

9

(f)  Evaluation.--A public entity shall evaluate each

10

proposal to determine which proposal has the best value for and

11

is in the best interest of the public entity. In making this

12

determination, a public entity may consider any of the

13

following:

14

(1)  Cost.

15

(2)  Price.

16

(3)  Financial commitment.

17

(4)  Innovative financing.

18

(5)  Bonding.

19

(6)  Technical, scientific, technological or

20

socioeconomic merit.

21

(7)  Financial strength and viability.

22

(8)  Design, operation and feasibility of the

23

transportation project.

24

(9)  Public reputation, qualifications, industry

25

experience and financial capacity of the private entity.

26

(10)  The ability of the transportation project to

27

improve economic growth, to improve public safety, to reduce

28

congestion, to increase capacity or to rehabilitate,

29

reconstruct or expand an existing transportation facility.

30

(11)  The compatibility of the proposal with existing

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1

local and regional land use plans.

2

(12)  The commitment of local communities to approve land

3

use plans in preparation for the transportation project.

4

(13)  Other factors deemed appropriate by the public

5

entity.

6

(g)  Weighted consideration.--The relative importance of each

7

evaluation factor shall be fixed prior to opening the proposals.

8

(h)  Participation in evaluation.--If the public entity is

9

the Commonwealth, the department is required to invite its

10

comptroller to participate in the evaluation as a nonvoting

11

member of any evaluation committee. No individual who has been

12

employed by an offeror within the last two years may participate

13

in the evaluation of proposals.

14

(i)  Discussion with responsible offerors and revision of

15

proposals.--As provided in the request for proposals,

16

discussions and negotiations may be conducted with responsible

17

offerors for the purpose of clarification and of obtaining best

18

and final offers. Responsible offers shall be accorded fair and

19

equal treatment with respect to any opportunity for discussion

20

and revision of proposals. In conducting discussions, there

21

shall be no disclosure of any information derived from proposals

22

submitted by competing offerors.

23

(j)  Selection for negotiation.--The responsible offeror

24

whose proposal is determined in writing to be the best value for

25

and in the best interests of the public entity, taking into

26

consideration all evaluation factors, shall be selected for

27

contract negotiation.

28

(k)  Cancellation.--A request for proposals may be canceled

29

at any time prior to the time a public-private transportation

30

partnership agreement is executed by all parties when it is in

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1

the best interests of the public entity.

2

(l)  Award.--Upon reaching an agreement with a responsible

3

offeror, a public entity shall enter into a public-private

4

transportation partnership agreement with the responsible

5

offeror. The public-private transportation partnership agreement

6

shall be consistent with the requirements of this chapter. If

7

agreement cannot be reached with the best qualified responsible

8

offeror, then negotiations will be formally terminated with the

9

offeror. If proposals were submitted by one or more other

10

responsible offerors, negotiations may be conducted with the

11

other responsible offeror or responsible offerors in the order

12

of their respective qualification ranking. The contract may be

13

awarded to the responsible offeror then ranked as best

14

qualified.

15

(m)  Resolution of controversies involving the

16

Commonwealth.--If a prospective offeror, offeror or development

17

entity is aggrieved by a selection under this section and the

18

public entity or proprietary public entity in the invitation or

19

contract is the Commonwealth, the prospective offeror, offeror

20

or development entity may file a protest or a claim, as

21

appropriate, in accordance with 62 Pa.C.S. Ch. 17 (relating to

22

legal and contractual remedies).

23

(n)  Resolution of controversies not involving the

<--

24

Commonwealth.--If a prospective offeror, offeror or development

25

entity is aggrieved by a selection under this section and the

26

public entity or proprietary public entity in the invitation or

27

contract is an entity other than the Commonwealth, a prospective

28

offeror, offeror or development entity may file a protest or a

29

claim, as appropriate, with the court of common pleas where the

30

public entity or proprietary public entity is located. The

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1

processes for the filing and resolution of protests and the

2

(n)  Resolution of controversies not involving the

<--

3

Commonwealth.--If a development entity is aggrieved by a

4

selection under this section and the proprietary public entity

5

in the contract is an entity other than the Commonwealth, a

6

development entity may file a claim with the court of common

7

pleas where the proprietary public entity is located. The

8

process for the filing and resolution of claims, including

9

rights, contents, timing, evaluation, determination and

10

remedies, which are established in 62 Pa.C.S. Ch. 17, shall

11

apply insofar as they are practicable.

12

§ 9111.  Public-private transportation partnership agreement.

13

(a)  Agreement provisions.--A public-private transportation

14

partnership agreement shall include the following provisions:

15

(1)  A description of any planning, development, design,

16

leasing, acquisition or interest in, financing, installation,

17

construction, reconstruction, replacement, expansion,

18

operation, maintenance, improvement, equipping, modification,

19

expansion, enlargement, management, running, control and

20

operation of the public-private transportation project.

21

(2)  The term of the public-private transportation

22

partnership agreement.

23

(3)  The type of property interest or other relationship

24

the development entity will have in or with respect to the

25

public-private transportation partnership project, including

26

acquisition of rights-of-way and other property interests

27

that may be required.

28

(4)  Authorization for the proprietary public entity or

29

its authorized representatives to inspect all assets and

30

properties of the public-private transportation project and

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1

all books and records of the development entity relating to

2

the public-private transportation project to review the

3

development entity's performance under the public-private

4

transportation partnership agreement.

5

(5)  Grounds for termination of the public-private

6

transportation partnership agreement by the parties.

7

(6)  Procedures for amendment of the public-private

8

transportation partnership agreement.

9

(7)  The rights and remedies available in the event of

10

breach, default or delay.

11

(8)  Requirements for a private development entity to

12

provide performance and payment bonds, parent company

13

guarantees, letters of credit or other acceptable forms of

14

security in an amount acceptable to the proprietary public

15

entity.

16

(9)  A requirement that ownership of a transportation

17

facility acquired or constructed go to or remain with the

18

proprietary public entity.

19

(10)  Standards for construction, maintenance and

20

operation of the public-private transportation project if the

21

activities are to be performed by the development entity.

22

(11)  Standards for capital improvement or modification

23

of the public-private transportation project if they are to

24

be made by the development entity.

25

(12)  Standards relating to how payments, if any, are to

26

be made by the proprietary public entity to the development

27

entity, including availability payments, performance-based

28

payment and payments of money and revenue-sharing with the

29

development entity.

30

(13)  Standards relating to how the parties will allocate

- 18 -

 


1

and share management of the risks of the public-private

2

transportation project.

3

(14)  Standards relating to how the parties will allocate

4

costs of development of the public-private transportation

5

project, including any cost overruns.

6

(15)  Standards relating to damages to be assessed for

7

nonperformance, specifying remedies available to the parties

8

and dispute resolution procedures.

9

(16)  Standards relating to performance criteria and

10

incentives.

11

(17)  A requirement that upon termination of the public-

12

private transportation partnership agreement, a

13

transportation facility that was the subject of the public-

14

private transportation partnership agreement must be in a

15

state of proper maintenance and repair and shall be returned

16

to the proprietary public entity in satisfactory condition at

17

no further cost to the proprietary public entity.

18

(18)  Provisions for law enforcement related to the

19

public-private transportation project.

20

(19)  An obligation of the development entity to offer

21

employment to any employee of the proprietary public entity

22

who would lose employment due to the execution of the public-

23

private transportation partnership agreement and who is in

24

good standing at the time of execution of the public-private

25

transportation partnership agreement, including salary,

26

retirement, health and welfare and benefits which are

27

substantially identical to the benefits received by the

28

employees immediately prior to execution of the public-

29

private transportation partnership agreement for the term of

30

the collective bargaining agreement of those employees in

- 19 -

 


1

effect. An employee of the proprietary public entity who does

<--

2

not accept employment with the development entity shall be

3

reassigned to an equivalent position, without loss of

4

seniority, within a worksite in as close proximity to the

5

public-private transportation project as feasible. Nothing in

6

this paragraph shall impair provisions related to furloughs

7

and layoffs of the collective bargaining agreement of those

8

employees in effect.

9

(20)  Other terms and provisions as required under this

10

chapter or agreed to by the development entity and the

11

proprietary public entity.

12

(b)  Term.--The proprietary public entity may enter into a

13

public-private transportation partnership agreement with any

14

development entity that includes the provisions under subsection

15

(a) for a term not to exceed 99 years.

16

(c)  Public partner.--Nothing in this chapter shall prohibit

17

the department from entering into a public-private

18

transportation partnership agreement with another Commonwealth

19

agency in accordance with this chapter.

20

(d)  Public entity.--Nothing in this chapter shall prohibit a

21

public entity from entering into a public-private transportation

22

partnership agreement with one or more public entities in

23

accordance with this chapter.

24

(e)  Environmental costs.--

25

(1)  A proprietary public entity may provide in a public-

26

private transportation partnership agreement that it will pay

27

or reimburse, on terms that it deems appropriate, the

28

development entity for actual costs associated with necessary

29

remediation for existing environmental contaminants located

30

on, under or emanating from the real property associated with

- 20 -

 


1

a public-private transportation project as of the date the

2

development entity assumes responsibility for the public-

3

private transportation project. If the public-private

4

transportation partnership agreement provides for

5

environmental remediation, the public-private transportation

6

partnership agreement shall require that the proprietary

7

public entity be given:

8

(i)  Prompt notice of any claim against the

9

proprietary public entity or a third party pertaining to

10

the contaminants.

11

(ii)  The right to elect to undertake the necessary

12

remediation.

13

(iii)  The right to participate in the defense of or

14

response to any claim.

15

(iv)  The right of prior approval before the

16

development entity may settle any claim.

17

(2)  No payment by a proprietary public entity under this

18

section may be for anything other than actual costs incurred

19

by a development entity to remediate the environmental

20

contamination on, under or emanating from the real property

21

associated with the public-private transportation project as

22

of the date the development entity assumes responsibility for

23

the public-private transportation project.

24

(f)  User fees.--A provision establishing whether user fees

25

will be collected imposed for use of the public-private

<--

26

transportation project and the basis by which any user fees will

27

be imposed and collected shall be determined in the public-

<--

28

private transportation partnership agreement. If a user fee is

29

proposed as part of the public-private transportation project, a

30

proprietary public entity shall include provisions in the

- 21 -

 


1

agreement that authorize the collection of user fees, tolls,

2

fares or similar charges, including provisions that:

3

(1)  Specify technology to be used in the public-private

4

transportation project.

5

(2)  Establish circumstances under which the proprietary

6

public entity may receive a share of revenues from the

7

charges.

8

(3)  Govern the enforcement of electronic tolls,

9

including provisions for use of available technology.

10

(4)  Establish payment collection standards, including

11

provisions for enforcement of nonpayment and penalties.

12

(5)  In the event an operator of a vehicle fails to pay

13

the prescribed toll or user fee at any location on a public-

14

private transportation project where tolls or user fees are

15

collected by means of an electronic or other automated or

16

remote form of collection, the collection provisions of

17

section 8117 (relating to electronic toll collection) shall

18

apply except that the development entity shall possess all of

19

the rights, roles, limitations and responsibilities of the

20

Pennsylvania Turnpike Commission.

21

(g)  Amounts received under a public-private transportation

22

partnership agreement.--The net proceeds received by the

23

proprietary public entity under a public-private transportation

24

partnership agreement shall be available exclusively to provide

25

funding for transportation needs in this Commonwealth. The use

26

of the proceeds or other revenues from the public-private

27

transportation project shall comply with Federal or State law

28

restricting or limiting the use of revenue from the public-

29

private transportation project based on its public funding.

30

§ 9112.  Records of requests.

- 22 -

 


1

Notwithstanding the Right-to-Know Law, the The following

<--

2

shall apply:

3

(1)  Upon the selection of a development entity to be a

4

party to a public-private transportation partnership

5

agreement, the identity of the development entity selected,

6

the contents of the response of the development entity to the

7

request for proposals, the final proposal submitted by the

8

development entity and the form of the public-private

9

transportation partnership agreement shall be made public.

10

Any financial information of a development entity that was

11

requested in the request for proposals or during discussions

12

and negotiations to demonstrate the economic capability of a

13

development entity to fully perform the requirements of the

14

public-private transportation partnership agreement shall not

15

be subject to public inspection.

16

(2)  A proprietary public and a private development

17

entity may agree, in their discretion, to make public any

18

information described under paragraph (1) that would not

19

otherwise be subject to public inspection.

20

(3)  If a proprietary public entity terminates a public-

21

private transportation partnership agreement for default,

22

rejects a private entity on the grounds that the private

23

entity is not responsible or suspends or debars a development

24

entity, the private entity or development entity, as

25

appropriate, shall, upon written request, be provided with a

26

copy of the information contained in the file of the private

27

entity or development entity maintained by the proprietary

28

public entity under a contractor responsibility program.

29

(4)  The following information shall not be subject to

<--

30

the Right-to-Know Law public:

<--

- 23 -

 


1

(i)  Information relating to proprietary information,

2

trade secrets, patents or exclusive licenses,

3

architectural and engineering plans and information

4

relating to competitive marketing materials and

5

strategies.

6

(ii)  Security information, including risk prevention

7

plans, detection and countermeasures, emergency

8

management plans, security and surveillance plans,

9

equipment and usage protocols and countermeasures.

10

(iii)  Records considered nonpublic matters or

11

information by the Securities and Exchange Commission

12

under 17 CFR 200.80 (relating to commission records and

13

information).

14

(iv)  Any financial information deemed confidential

15

by the proprietary public entity upon a showing of good

16

cause by the offeror or development entity.

17

(v)  Records prepared or utilized to evaluate a

<--

18

proposal.

19

§ 9113.  Use of intellectual property.

20

Unless otherwise agreed and except to the extent not

21

transferable by law, the department or a proprietary public

22

entity shall have the right to use all or a portion of a

23

submitted proposal, including the technologies, techniques,

24

methods, processes and information contained in the proposal.

25

Notice of nontransferability by law shall be given to the

26

department and the proprietary public entity in response to the

27

request for proposals.

28

§ 9114.  Police powers and violations of law.

29

(a)  Enforcement of traffic laws.--To the extent the public-

30

private transportation project is a highway, bridge, tunnel

- 24 -

 


1

overpass or similar transportation facility for motor vehicles,

2

75 Pa.C.S. (relating to vehicles) and other laws of this

3

Commonwealth or, if applicable, any local jurisdiction shall be

4

the same as those applying to conduct on similar transportation

5

facilities in this Commonwealth or the local jurisdiction.

6

Punishment for offenses shall be prescribed by law for conduct

7

occurring on similar transportation facilities in this

8

Commonwealth or the local jurisdiction.

9

(b)  Arrest powers.--All officers authorized by law to make

10

arrests for violations of law in this Commonwealth shall have

11

the same powers, duties and jurisdiction within the limits of a

12

public-private transportation project as they have in their

13

respective areas of jurisdiction. The grant of authority under

14

this section shall not extend to the private offices, buildings,

15

garages and other improvements of a development entity to any

16

greater degree than the police power extends to any other

17

private offices, buildings, garages and other improvements.

18

§ 9115.  Environmental and other authorizations.

19

(a)  The Administrative Code of 1929.--Notwithstanding any

20

other provision of law, neither soliciting nor approving a

21

request for proposals, nor executing a public-private

22

transportation partnership agreement under this chapter shall

23

constitute the submission of a preliminary plan or design to the

24

department under section 2002(b) of the act of April 9, 1929

25

(P.L.177, No.175), known as The Administrative Code of 1929.

26

(b)  Environmental authorizations.--A public-private

27

transportation partnership agreement may require that prior to

28

commencing any construction in connection with the development,

29

operation or financing of any public-private transportation

30

project if the agreement requires environmental authorizations

- 25 -

 


1

to be obtained, the development entity shall do any of the

2

following:

3

(1)  Secure all necessary environmental permits and

4

authorizations and, if specified under the act of May 19,

5

1995 (P.L.4, No.2), known as the Land Recycling and

6

Environmental Remediation Standards Act, obtain the approval

7

of the Department of Environmental Protection.

8

(2)  Complete environmental remediation of the site on

9

which the public-private transportation project is to be

10

located, including acts required under any agreement entered

11

into with the Department of Environmental Protection for

12

remediation of the site under the Land Recycling and

13

Environmental Remediation Standards Act.

14

§ 9116.  Taxation of development entity.

15

(a)  General rule.--To the extent that revenues or user fees

16

received by a development entity pursuant to a public-private

17

transportation partnership agreement are subject to a tax

18

imposed by a political subdivision prior to the effective date

19

of this section, the revenues or user fees shall continue to be

20

subject to the tax and to future increases in the rate of the

21

tax.

22

(b)  New taxation barred.--After the effective date of this

23

section, no new tax shall be imposed by a political subdivision

24

or the Commonwealth on the revenues or user fees received by a

25

development entity pursuant to a public-private transportation

26

partnership agreement.

27

(c)  Realty transfer tax.--No public-private transportation

28

partnership agreement, lease, concession, franchise or other

29

contract involving real property of a public-private

30

transportation project shall be subject to a Commonwealth or

- 26 -

 


1

local realty transfer tax imposed under the act of December 31,

2

1965 (P.L.1257, No.511), known as The Local Tax Enabling Act,

3

the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

4

Code of 1971, or a successor statute.

5

(d)  Property.--Property used in connection with a public-

6

private transportation project shall be considered public

7

property and shall be exempt from ad valorem property taxes and

8

special assessments levied against property by the Commonwealth

9

or any political subdivision.

10

§ 9117.  Power of eminent domain.

11

The exercise of the power of eminent domain by any condemnor

12

to acquire property for public-private transportation project

13

purposes under a public-private transportation partnership

14

agreement shall be considered a taking for a public purpose and

15

not for a private purpose or for private enterprise.

16

§ 9118.  Sovereign immunity.

17

Under section 11 of Article 1 of the Constitution of

18

Pennsylvania, it is declared to be the intent of the General

19

Assembly that the Commonwealth, and its officials and employees

20

and a municipal authority, and its officials and employees,

21

acting within the scope of their duties, shall continue to enjoy

22

sovereign immunity and official immunity and remain immune from

23

suit except as provided in section 9119 (relating to specific

24

performance). A claim against the Commonwealth and its officials

25

and employees or municipal authority and its officials and

26

employees shall be brought only in such manner and in such

27

courts and in such cases as directed by the provision of section

28

9111(e) (relating to public-private transportation partnership

29

agreement), 42 Pa.C.S. Ch. 85 (relating to matters affecting

30

government units), 62 Pa.C.S. Ch. 17 (relating to legal and

- 27 -

 


1

contractual remedies) or any procurement law applicable to a

2

municipal authority.

3

§ 9119.  Specific performance.

4

A proprietary public entity is authorized to agree that

5

specific performance shall be available to a development entity

6

as a remedy for a breach by the proprietary public entity of its

7

representations, covenants, warranties or other obligations

8

under the public-private transportation partnership agreement to

9

the extent set forth in the public-private transportation

10

partnership agreement.

11

§ 9120.  Additional provisions.

<--

12

To the extent applicable, all provisions of law shall apply

13

to a contract entered into between a proprietary public entity

14

and a development entity related to the development, operation

15

or financing of a public-private transportation project under

16

this chapter. This section includes:

17

(1)  62 Pa.C.S. § 107 (relating to reciprocal

18

limitations).

19

(2)  62 Pa.C.S. § 531 (relating to debarment or

20

suspension).

21

(3)  62 Pa.C.S. § 541 (relating to approval of accounting

22

system).

23

(4)  62 Pa.C.S. § 551 (relating to right to inspect

24

plant).

25

(5)  62 Pa.C.S. § 552 (relating to right to audit

26

records).

27

(6)  62 Pa.C.S. § 563 (relating to retention of

28

procurement records).

29

(7)  The act of August 15, 1961 (P.L.987, No.442), known

30

as the Pennsylvania Prevailing Wage Act.

- 28 -

 


1

§ 9120.  Applicability of other laws.

<--

2

All provisions of laws related to the development,

3

construction, operation or financing of a transportation project

4

in effect on the date the public-private transportation

5

partnership agreement is fully executed shall apply to a public-

6

private transportation partnership agreement entered into

7

between a proprietary public entity and a development entity.

8

The provisions shall include:

9

(1)  The act of May 1, 1913 (P.L.155, No.104), referred

10

to as the Separations Act.

11

(2)  The act of August 15, 1961 (P.L.987, No.442), known

12

as the Pennsylvania Prevailing Wage Act.

13

(3)  62 Pa.C.S. § 107 (relating to reciprocal

14

limitations).

15

(4)  62 Pa.C.S. § 531 (relating to debarment of

16

suspension).

17

(5)  62 Pa.C.S. § 541 (relating to approval of accounting

18

system).

19

(6)  62 Pa.C.S. § 551 (relating to right to inspect

20

plant).

21

(7)  62 Pa.C.S. § 552 (relating to right to audit

22

records).

23

(8)  62 Pa.C.S. § 563 (relating to retention of

24

procurement records).

25

(9)  62 Pa.C.S. § Ch. 17 (relating to legal and

26

contractual remedies).

27

§ 9121.  Adverse interest.

28

(a)  Private entity adverse interests.--The following shall

29

apply:

30

(1)  Except as provided under paragraph (2), a private

- 29 -

 


1

entity which submits a response to a request for proposals

2

under section 9110 (relating to selection of development

3

entities), a request for transportation projects under

4

section 9107 (relating to solicitations for transportation

5

projects) or an unsolicited proposal, and which is also a

6

State adviser or a State consultant for the department or the

7

Pennsylvania Turnpike Commission, shall not be deemed to be

8

in violation of the State Adverse Interest Act while engaging

9

in any of the following activities:

10

(i)  Preparing or submitting a response to a request

11

for proposals or transportation projects.

12

(ii)  Participating in any activity with the

13

department related to a request for proposals or

14

transportation projects.

15

(iii)  Negotiating and entering into any contract

16

lease or public-private transportation partnership

17

agreement which results from a request for proposals or

18

transportation projects.

19

(iv)  Engaging in any other action taken in

20

furtherance of the purposes of this chapter.

21

(2)  A private entity which submits a response to a

22

request for proposals or transportation projects or acts as a

23

consultant or an adviser to a private entity which submits a

24

response to a request for proposals or transportation

25

projects to the department shall be prohibited from

26

consulting or providing advice to the department on the

27

review or approval of the response to the request for

28

proposals or transportation projects as submitted.

29

(3)  A private entity which submits a response to a

30

request for proposals or transportation projects or acts as a

- 30 -

 


1

consultant or an advisor to a private entity which submits a

2

response to a request for proposals or transportation

3

projects to the board shall be prohibited from consulting or

4

providing advice to the department on the review or approval

5

of the response to the request for proposals or

6

transportation projects so submitted.

7

(b)  Definitions.--As used in this section, the following

8

words and phrases shall have the meanings given to them in this

9

subsection unless the context clearly indicates otherwise:

10

"State adviser."  As defined in section 2(7) of the act of

11

July 19, 1957 (P.L.1017, No.451), known as the State Adverse

12

Interest Act.

13

"State consultant."  As defined in section 2(9) of the act of

14

July 19, 1957 (P.L.1017, No.451), known as the State Adverse

15

Interest Act.

16

§ 9122.  Federal, State, local and private assistance.

17

(a)  Federal assistance.--The following shall apply:

18

(1)  The department or a proprietary public entity may

19

accept from the United States or any of its agencies funds

20

that are available to the Commonwealth for carrying out this

21

chapter, whether the funds are made available by grant, loan,

22

loan guarantee or otherwise.

23

(2)  The department or a proprietary public entity is

24

authorized to assent to any Federal requirements, conditions

25

or terms of any Federal funding accepted by the department or

26

a proprietary public entity under this section.

27

(3)  The department or a proprietary public entity may

28

enter into agreements or other arrangements with the United

29

States or any of its agencies as may be necessary for

30

carrying out the purposes of this chapter.

- 31 -

 


1

(b)  Acceptance of grants and donations.--The department or a

2

proprietary public entity may accept from any source any grant,

3

donation, gift or other form of conveyance of land, money or

4

other real, personal or mixed property or other item of value

5

for carrying out the purpose of this chapter.

6

(c)  Contributions.--Subject to acceptance and agreement

7

between the development entity and a proprietary public entity,

8

any public-private transportation project may be financed, in

9

whole or in part, by contribution of any funds or property made

10

by a proprietary public entity, a development entity or an

11

affected jurisdiction.

12

(d)    Combination of funds.--The department or proprietary

13

public entity may combine Federal, State, local and private

14

funds to finance a public-private transportation project under

15

this chapter.

16

(e)  Itemization.--Pursuant to section 7(a)(4) of Article

<--

17

VIII of the Constitution of Pennsylvania, a public-private

18

transportation project funded, in whole or in part, through the

19

issuance of debt where the credit of the Commonwealth is pledged

20

shall be itemized in a capital budget itemization act.

21

§ 9123.  Public-Private Transportation Account.

22

(a)  Establishment.--

23

(1)  There is established within the Motor License Fund a

24

separate account to be known as the Public-Private

25

Transportation Account.

26

(2)  Money in the account shall be used only for the

27

purposes enumerated under subsection (c).

28

(b)  Deposits to account.--The following shall apply:

29

(1)  The department shall deposit in the account the

30

following:

- 32 -

 


1

(i)  All money received by the department pursuant to

2

the terms of a public-private transportation partnership

3

agreement under which the department is the proprietary

4

public entity.

5

(ii)  Repayment of any loans from the account made

6

under this chapter.

7

(iii)  Subject to the provisions of any public-

8

private transportation partnership agreement under which

9

the department is the proprietary public entity, monetary

10

damages and other amounts for failure by a development

11

entity to comply with the terms of the public-private

12

transportation partnership agreement.

13

(iv)  Subject to the provisions of any public-private

14

transportation partnership agreement under which the

15

department is the proprietary public entity, payments

16

made from any insurance proceeds or reserve funds or

17

performance or payment bonds in connection with a public-

18

private transportation project.

19

(v)  Earnings from the investment of the money in the

20

account.

21

(2)  The Secretary of the Budget shall establish any

22

restricted accounts within the account as the secretary deems

23

necessary for the proper administration of the account.

24

(3)  All money related to any public-private

25

transportation partnership agreement in which the department

26

is not the proprietary public entity shall not be held in the

27

account, but shall be held by the proprietary public entity

28

or its agent.

29

(c)  Appropriation.--The funds in the account are

30

continuously appropriated to the department for the following

- 33 -

 


1

purposes:

2

(1)  Paying the amounts as the department may be required

3

to repay the Federal Highway Administration funding agencies.

<--

4

(2)  Paying all amounts designated by the department as

5

required for repayment or defeasance of outstanding bonds.

6

(3)  Paying costs of maintenance, operating and financing

7

of transportation facilities in this Commonwealth which are

8

available for use by the public, including the costs of

9

insurance or reserves against risks of contingencies.

10

(4)  Paying expenses incurred under or in connection with

11

any public-private transportation partnership agreement by

12

the department, including professional fees and expenses.

13

(5)  Paying the costs of the department relating to

14

performing and administering duties under this chapter.

15

(6)  Paying all expenses approved by the board for its

16

costs incurred to perform its duties, including paying

17

professional fees and expenses.

18

(7)  Paying costs of any purpose authorized under this

19

chapter.

20

(d)  Amounts received.--The net proceeds received under a

21

public-private transportation partnership agreement shall be

22

available exclusively to provide funding for transportation

23

needs in this Commonwealth. The use of the proceeds or other

24

revenues from the public-private transportation project shall be

25

in accord with Federal or State law restricting or limiting the

26

use of revenue from the public-private transportation project

27

based on its public funding.

28

§ 9124.  Pennsylvania Turnpike Commission.

29

The Pennsylvania Turnpike Commission may not enter into a

30

public-private transportation partnership agreement in the

- 34 -

 


1

capacity of a proprietary public entity with respect to granting

2

substantial oversight and control over the Turnpike Mainline to

3

another entity unless specific authority is granted through an

4

act of law passed by the General Assembly. However, this shall

5

not restrict the Pennsylvania Turnpike Commission from entering

6

into a public-private transportation partnership agreement under

7

this chapter or under other statutes which does not involve

8

granting substantial oversight and control over the Turnpike

9

Mainline to another entity.

10

§ 9125.  Regulations.

11

(a)  Department.--In order to facilitate the implementation

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of this chapter, the department is authorized to promulgate

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regulations or publish guidelines that include the following:

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(1)  The process for review of a request for proposals or

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transportation projects or responses to requests for

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proposals or transportation projects issued by a public

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entity.

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(2)  The process for receipt and review of and response

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to competing responses to requests for proposals or

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transportation projects.

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(3)  The type and amount of information that is necessary

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for adequate review of and response to each stage of review

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of a proposal or transportation project.

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(4)  Any other provisions which are required under this

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chapter or which the department determines are appropriate

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for implementation of this chapter.

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(b)  Temporary regulations.--Notwithstanding any other

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provision of law, any regulation promulgated by the department

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under this chapter during the two years following the effective

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date of this section shall be deemed temporary regulations which

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1

shall expire no later than three years following the effective

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date of this section or upon promulgation of final regulations.

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The temporary regulations shall not be subject to any of the

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following:

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(1)  Sections 201, 202, 203 and 204 of the act of July

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31, 1968 (P.L.769, No.240), referred to as the Commonwealth

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Documents Law.

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(2)  The act of June 25, 1982 (P.L.633, No.181), known as

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the Regulatory Review Act.

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Section 2.  Repeals are as follows:

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(1)  The General Assembly declares that the repeal under

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paragraph (2) is necessary to effectuate the addition of 74

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Pa.C.S. Ch. 91.

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(2)  Section 3 of the act of May 29, 1945 (P.L.1108,

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No.402), referred to as the Limited Access Highway Law, is

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repealed insofar as it is inconsistent with the addition of

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74 Pa.C.S. Ch. 91.

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Section 3.  This act shall take effect as follows:

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(1)  The addition of 74 Pa.C.S. §§ 9103, 9104, 9105, 9106

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and 9125 shall take effect immediately.

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(2)  This section shall take effect immediately.

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(3)  The remainder of this act shall take effect in 60

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days.

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