STATE HIGHWAY DEPARTMENT LAW
                  Act of May 31, 1911, P.L. 468, No. 193              Cl. 36
                                  AN ACT

     Providing for the establishment of a State Highway Department,
        by the appointment of a State Highway Commissioner, two
        Deputy State Highway Commissioners, chief engineer, chief
        draughtsman, superintendents of highways, and a staff of
        assistants and employes; defining their duties and the
        jurisdiction of the State Highway Department, and fixing
        salaries of commissioner and deputies and other appointees;
        providing for taking over from the counties or townships of
        the Commonwealth certain existing public roads connecting
        county-seats, principal cities, and towns and extending to
        the State line; describing and defining same by route numbers
        as the State Highways of the Commonwealth; providing for the
        improvement, maintenance and repair of said State Highways
        solely at the expense of the Commonwealth, and relieving the
        several townships or counties from any further obligation and
        expense to improve or maintain the same, and relieving said
        townships or counties of authority over same; requiring
        boroughs and incorporated towns to maintain certain State
        Highways wholly and in part; requiring the State Highway
        Commissioner to make maps to be complete records thereof;
        conferring authority on the State Highway Commissioner;
        providing for the payment of damages in taking of property,
        or otherwise, in the improvement thereof; providing for
        purchase or acquiring of turnpikes or toll-roads forming all
        or part of any State Highway, and procedure therein;
        providing for work of improvement of State Highways to be
        done by contract, except where the State Highway Commissioner
        decides the work be done by the State; providing aid by the
        State to counties and townships desiring the same in the
        improvement of township or county roads; defining highways
        and State-aid highways; providing method of application for
        State aid in the improvement, maintenance and repair of
        township or county roads and prescribing the contents of
        township, county, borough, or incorporated town petitions;
        providing for percentage of cost of improvement or repairs to
        be paid by State, county, township, borough, or incorporated
        town, and requiring contracts by counties, townships,
        boroughs, and incorporated towns with Commonwealth governing
        same; providing for the minimum width of State Highways and
        State-aid highways, and kind of materials to be used in the
        improvement; providing for payment of cost of improvement and
        repairs; providing penalty for injuring or destroying State
        Highways; making appropriations to carry out the provisions
        of the act; and providing for the repeal of certain acts
        relating to Highway Department and improvement of roads, and
        of all acts or parts of acts inconsistent herewith; and
        providing that existing contracts are not affected by
        provisions of this act.

        Section 1.  Be it enacted, &c., That from and after the first
     day of June, Anno Domini one thousand nine hundred and eleven,
     there shall be established a State Highway Department, by the
     appointment by the Government of the Commonwealth of a State
     Highway Commissioner, who shall serve for a term of four years,
     and shall give his entire time and attention to the duties of
     his office. He shall receive a salary of ten thousand dollars
     per annum, and shall furnish a bond to the Commonwealth, in the
     sum of two hundred thousand dollars, to be approved by the
     Governor, conditioned for the faithful performance of his
     duties.
        (1 amended Mar. 10, 1921, P.L.18, No.6)
        Section 2.  (2 repealed June 7, 1923, P.L.498, No.274)
        Section 3.  The State Highway Commissioner is hereby
     empowered to make and adopt rules and regulations for conducting
     the business and work of the department, not otherwise expressly
     provided in this act, and to prescribe the duties of all
     appointees and employes. All appointees or employes of the
     department shall be subject to removal or discharge by the State
     Highway Commissioner.
        He is hereby authorized and empowered to purchase all
     machinery, implements, tools, and materials, of any and every
     kind, incident to or necessary in the construction, building,
     rebuilding, and maintenance of the State Highways hereinafter
     described, including the right to employ all necessary labor;
     and, if in the judgment of the commissioner it is necessary in
     order to expedite and more efficiently carry out the work of the
     department, he may purchase and maintain, at the expense of the
     department, wagons and other vehicles, including horses, mules,
     and harness, and provide for their keeping and maintenance,
     which shall be used only in connection with the work of the
     department.
        The State Highway Commissioner is hereby further authorized
     and empowered to purchase and acquire land or lands, in the name
     of the Commonwealth and situated anywhere therein, containing
     stone suitable for use in the construction or maintenance of
     highways, and to quarry and prepare the stone thereon for use in
     the construction and maintenance of the State Highways or State-
     aid highways, and to manufacture any other material used in the
     construction or maintenance thereof, and to use such stone and
     material, so quarried, prepared, and manufactured, in such
     construction and maintenance, or to sell, furnish, and supply
     the same to contractors engaged in building or maintaining the
     State Highways or State-aid highways, upon such terms and
     conditions, and for such price, as he shall deem best for the
     interests of the Commonwealth.
        And he is hereby further authorized and empowered to erect
     such buildings and purchase such machinery, utensils, tools, and
     equipment, as may be necessary or essential for the proper
     prosecution of the work of quarrying and preparing stone and
     manufacturing material, pursuant to the foregoing provision, for
     use in the construction and maintenance of State Highways and
     State-aid highways, and to employ all labor required for the
     operation thereof.
        (3 amended June 7, 1919, P.L.428, No.212)

        Compiler's Note:  Section 2901 of Act 274 of 1923 provided
            that section 3 is repealed insofar as it is inconsistent
            with Act 274.
        Section 4.  (4 repealed June 7, 1923, P.L.498, No.274)
        Section 5.  The highways designated in this act as State
     Highways shall be taken over by the State Highway Department
     from the several counties or townships of the State, and when so
     taken over shall thereafter be constructed, improved, and
     maintained by the State Highway Department, at the expense of
     the Commonwealth. Said highways shall be taken over in whole or
     in part, from time to time, as circumstances and conditions will
     permit: Provided, That, all township roads, abandoned and
     condemned turnpikes, or turnpikes that may hereafter be
     abandoned or which may hereafter be condemned and paid for by
     the county in which the same may be located, and which form a
     part of any such highways, shall be taken over by the State
     Highway Department before the first day of June, one thousand
     nine hundred and twelve. The State Highway Commissioner shall,
     before taking over any highway under the provisions of this act,
     give notice in writing to the proper officers of the county or
     township in which said highway shall lie of his intention so to
     do, and of the date when the State Highway Department will
     assume the maintenance and care thereof. The work of
     maintenance, repair, and construction of said State Highways
     shall be commenced and carried on as equally and uniformly in
     the several counties as conditions will allow: Provided, That
     any county, township, or borough, or incorporated town which may
     have in contemplation, or under contract or construction, the
     improvement of any portion of any highway designated herein as a
     State Highway, shall, upon notice from the State Highway
     Commissioner of his intention to take over such highway as
     herein provided, immediately notify the State Highway
     Commissioner of their intention to make said improvements; and
     thereupon the status of such highway shall remain the same as it
     was previous to the passage of this act; and the county
     commissioners, or the commissioners or supervisors of the
     township, or councils of the borough or incorporated town, as
     the case may be, are authorized to complete the improvements of
     said highway at the expense of the county or township, or
     borough or town, as the case may be; or the same may be
     reconstructed as a State-aid highway as is hereinafter provided
     for: Provided, That upon the completion of any improvement
     aforesaid, or at the expiration of a period not exceeding
     eighteen months after the passage of this act, the said highway
     shall become a State Highway, as herein provided: And be it
     further provided, That where an agreement or contract exists
     between any street railway company, or other firm or
     corporation, and any county, township, or borough, the terms of
     which require said street railway company, or other firm or
     corporation, to maintain any highway which is designated under
     this act as a State Highway, the said agreement shall remain in
     force, and the State shall succeed to and take over to itself
     all the rights of said county, township, or borough existing
     under said agreement or contract. The said street railway
     company, or other firm or corporation, shall be bound to carry
     out all of the requirements, and comply with all the terms and
     conditions, of said agreement with the State, the same as though
     the said contract or agreement had been originally made between
     the State and said street railway company or other firm or
     corporation.
        Section 6.  From and after the adoption of this act, all
     those certain existing public roads, highways, turnpikes, and
     toll-roads, or any parts or portions thereof, subject to the
     provisions hereinafter made in the case of turnpikes and toll-
     roads, forming and being main traveled roads or routes between
     the county-seats of the several counties of the Commonwealth,
     and main traveled roads or routes leading to the State line, and
     between principal cities, boroughs, and towns, shall be known,
     marked, built, rebuilt, constructed, repaired, and maintained by
     and at the sole expense of the Commonwealth; and shall be under
     the exclusive authority and jurisdiction of the State Highway
     Department, and shall constitute a system of State Highways, the
     same being more particularly described and defined.
        Section 7.  (7 repealed June 1, 1945, P.L.1242, No.428)
        Section 8.  (8 repealed June 1, 1945, P.L.1242, No.428)
        Section 9.  (9 repealed June 1, 1945, P.L.1242, No.428)
        Section 10.  (10 repealed June 1, 1945, P.L.1242, No.428)
        Section 11.  (11 repealed June 1, 1945, P.L.1242, No.428)
        Section 12.  (12 repealed June 1, 1945, P.L.1242, No.428)
        Section 13.  (13 repealed June 1, 1945, P.L.1242, No.428)
        Section 14.  (14 repealed June 1, 1945, P.L.1242, No.428)
        Section 15.  (15 repealed June 1, 1945, P.L.1242, No.428)
        Section 16.  (16 repealed June 1, 1945, P.L.1242, No.428)
        Section 17.  (17 repealed June 1, 1945, P.L.1242, No.428)
        Section 18.  (18 repealed June 1, 1945, P.L.1242, No.428)
        Section 19.  (19 repealed June 1, 1945, P.L.1242, No.428)
        Section 20.  (20 repealed June 1, 1945, P.L.1242, No.428)
        Section 21.  (21 repealed June 1, 1945, P.L.1242, No.428)
        Section 22.  (22 repealed June 1, 1945, P.L.1242, No.428)
        Section 23.  (23 repealed June 1, 1945, P.L.1242, No.428)
        Section 24.  (24 repealed June 1, 1945, P.L.1242, No.428)
        Section 25.  (25 repealed June 1, 1945, P.L.1242, No.428)
        Section 26.  (26 repealed June 1, 1945, P.L.1242, No.428)
        Section 27.  (27 repealed June 1, 1945, P.L.1242, No.428)
        Section 28.  (28 repealed June 1, 1945, P.L.1242, No.428)
        Section 29.  The work of maintaining and repairing all State-
     aid highways, improved under the provisions of this act, or
     which shall have been previously reconstructed by State aid,
     shall be done by the Department of Highways; and fifty (50%) per
     centum of the cost thereof shall be paid by the several
     townships wherein such roads may lie; or by the county, when
     such roads have been improved upon the petition of such county
     without the co-operation of the township. Whenever the
     obligation of any township for the cost of constructing,
     reconstructing, or maintaining and repairing any State-aid
     highways, constructed or reconstructed pursuant to an agreement
     between the township and the Department of Highways, or
     reconstructed by State aid previous to the passage of the act to
     which this is an amendment, remains unpaid and has been referred
     by the Department of Highways to the Department of Justice for
     collection, the Attorney General, on behalf of the Commonwealth,
     and with the approval of the Auditor General and State
     Treasurer, may enter into an agreement with the township against
     which the claim is outstanding for the payment of such claim in
     installments. Such agreement may be made whenever it appears
     that the township is unable to pay the claim at once by reason
     of its financial condition, and shall provide for the
     liquidation of such claim in definite payments over a period not
     exceeding five years. If it shall appear that the township by
     reason of its financial condition would be unable to pay the
     full amount of such claim in installments over a period of five
     years, the Attorney General, with the approval of the Auditor
     General and State Treasurer, may compound or settle such claim
     outstanding, before or after being reduced to judgment, for such
     portion thereof as such officers may find the township to be
     able to pay over a period of five years, and the agreement
     hereinbefore provided for shall be entered into on the basis of
     such settlement.
        (29 amended June 25, 1937, P.L.2110, No.423)
        Section 30.  (30 repealed June 1, 1945, P.L.1242, No.428)
        Section 31.  (31 repealed June 1, 1945, P.L.1242, No.428)
        Section 32.  (32 repealed June 1, 1945, P.L.1242, No.428)
        Section 33.  (a)  The total cost of the improvement and
     maintenance of the State-aid highways constructed under the
     provisions of this act, as provided by the terms of the
     contract, or otherwise as herein provided, when properly
     certified by the Secretary of Highways, shall be audited by the
     Auditor General, and when audited and allowed shall be paid out
     of moneys specifically appropriated for this purpose, by
     warrants drawn therefor by the Auditor General upon the State
     Treasurer.
        (b)  The share of the county shall be paid as provided by its
     contract, and, otherwise, by the provisions of this act, to the
     State Treasurer by the county treasurer, upon the warrant of the
     county commissioners, in such sum or sums as shall be certified
     by the Secretary of Highways, from time to time, during the
     performance of the work or contract, or as provided by the
     contract, and, otherwise, by the provisions hereof, after the
     same shall be completed.
        (c)  The share of the township or townships, or of any
     borough or boroughs, or of any incorporated town or towns, shall
     be paid to the State Treasurer by the township supervisors or
     commissioners, or by the borough treasurer, or by the town
     treasurer, as the case may be, in the manner and form as in the
     case of counties, and as other debts of said townships or
     boroughs are paid, when and as demanded by certificate of the
     Secretary of Highways during the performance of the work or
     contract, or, in like manner, after the same shall be completed.
        (d)  Upon the completion of any State-aid highway
     improvement, or upon the ascertainment of any additional
     improvement cost, or of any maintenance expense, incurred
     thereon thereafter by the Department of Highways, the Secretary
     of Highways shall certify the same to the State Treasurer, and
     to the county commissioners and township supervisors, or borough
     or town authorities, as the case may be, the respective shares
     of said cost or expense for which the county, township, borough,
     or incorporated town is liable. If the said shares or amounts,
     so certified by the Secretary of Highways, of the cost and
     expense of the improvement, or of the subsequent maintenance
     thereof, as provided by contract and the provisions of this act,
     of the county, township, borough, or incorporated town, or all
     or either of them, shall not be paid to the State Treasurer
     within thirty days after being certified, then the said shares
     of the county, township, borough, or incorporated town, either
     or all of them, remaining unpaid, shall be charged by the State
     Treasurer against any funds of said county, township, borough,
     or incorporated town which may be in the hands of the State
     Treasurer, or which may thereafter come into his hands,
     excepting school funds, and may also be recovered by action at
     law or equity as any other debts of such counties, townships,
     boroughs, or incorporated towns are by law recoverable.
        (e)  The amounts paid under this act to the State Treasurer
     by the counties, townships, boroughs, and towns, shall be placed
     by him to the credit of the proper fund for highway construction
     or maintenance, and shall immediately be available for the use
     of the Department of Highways for construction or maintenance,
     as the case may be; and the Secretary of Highways is hereby
     authorized and empowered to apportion the said amounts, thus
     paid into the State Treasury by the counties, townships,
     boroughs, and incorporated towns, among the several counties as
     hereinbefore provided for.
        (f)  The Secretary of Transportation may make partial
     payments to any contractor performing any highway improvement,
     under this act, at semi-monthly intervals, or more frequently
     from time to time, as the same progresses, upon estimate made by
     the Department of Transportation, beginning on the first
     estimate date established by the department following the date
     set forth in the notice to proceed or indicated in the special
     provisions. Five per centum (5%) of the amount due on partial
     payments or current estimates representing fifty per centum
     (50%) of the total contract price shall be withheld from the
     contractor pending completion: Provided, That the secretary may
     waive the withholding or reduce the amount of retainage if he is
     otherwise assured that the contract will be completed.
     Thereafter, no per centum of the amount due on partial payments
     or current estimates shall be withheld from the contractor
     pending completion: Provided, That the Secretary of
     Transportation may, in his discretion, make payments in excess
     of the percentages withheld when at least ninety-five per centum
     (95%) of the work contracted has been completed. If any amount
     is required by the secretary to be retained under this section,
     the amount retained under said contract for the work done and
     performed shall in all cases be sufficient to cover the contract
     price or estimated cost of the work remaining to be done to
     satisfactorily complete the contract. ((f) amended July 9, 1976,
     P.L.915, No.168)
        (g)  ((g) deleted Dec. 22, 1981, P.L.521, No.145)
        (h)  In addition to the payments herein authorized, the
     Secretary of Highways shall pay to the contractor interest at
     the rate of five (5) per centum per annum on the amount
     retained, and on the final payment due the contractor beginning
     ninety (90) days after the work under the contract has been
     completed and accepted by the Department of Highways and running
     until the date when such amount retained and final payment are
     tendered to the contractor.
        (i)  At the option of the contractor and in lieu of the
     payment of any interest as hereinbefore provided in subsection
     (h), amounts withheld pending completion of any highway
     improvement under this act may, in whole or in part, be
     withdrawn by the contractor as soon as such amounts are credited
     to his account under either of the hereinbefore mentioned
     methods for making partial and final payments upon depositing
     with the Secretary of Transportation securities of a market
     value equal to the amount so withdrawn. Such securities shall be
     of a character approved by the Secretary of Transportation and
     shall include, but not be limited to, certificates of deposit
     issued by, or savings accounts in national or state banks
     authorized to do business in the Commonwealth, savings accounts
     in savings and loans, savings associations, building and loan
     associations and Federal savings and loan associations
     authorized to do business in the Commonwealth, bonds or notes of
     the United States of America, the Commonwealth of Pennsylvania,
     or any political subdivision thereof and, upon approval, such
     certificates of deposit, bonds, notes or other obligations as
     may be issued by any national or state bank, state savings
     association or Federal savings and loan association authorized
     to do business in the Commonwealth, authority, agency or
     instrumentality created by the United States of America, the
     Commonwealth of Pennsylvania, or any political subdivision
     thereof.
        The Secretary of Transportation shall, from time to time,
     collect all interest or income on the securities so deposited
     and shall pay the same, when and as collected, to the contractor
     who deposited the securities. If the deposit be in the form of
     coupon bonds, the coupons as they respectively become due shall
     be delivered to the contractor. Upon default, the Secretary of
     Transportation may apply such securities, interest, coupons or
     income therefrom as may be necessary to correct said default and
     the contractor shall not be entitled to the balance thereof, if
     any, until the work remaining to be done under the contract has
     been satisfactorily completed. ((i) amended Dec. 27, 1974,
     P.L.1018, No.330)
        (33 amended May 25, 1961, P.L.231, No.131)
        Compiler's Note:  Section 2 of Act 145 of 1981 provided that
            the provisions of section 1 of Act 145, deleting
            subsection (g) of section 33, shall not be construed as
            limiting the authority of the Department of
            Transportation to make payments for fabricated steel and
            prestressed beams prior to their delivery which authority
            the General Assembly has implicitly granted to the
            department in its contract making powers, but such
            deletion shall be construed as removing certain obsolete
            and cumbersome statutory provisions which serve only to
            inhibit the flexibility of the Department of
            Transportation in making the most advantageous contracts
            on behalf of the Commonwealth with its suppliers.
        Section 34.  (34 repealed June 1, 1945, P.L.1242, No.428)
        Section 35.  (35 repealed June 1, 1945, P.L.1242, No.428)
        Section 36.  (36 repealed June 1, 1945, P.L.1242, No.428)
        Section 37.  (37 repealed June 1, 1945, P.L.1242, No.428)
        Section 38.  (38 repealed June 1, 1945, P.L.1242, No.428)
        Section 39.  (39 repealed June 1, 1945, P.L.1242, No.428)
        Section 41.  All duties, responsibilities, powers, or
     jurisdiction conferred upon the State Highway Commissioner, and
     upon the State Highway Department as previously created, by acts
     of Assembly now in force, and which do not conflict with the
     provisions of this act, are therefore not repealed by this act,
     and shall be assumed by, and are hereby conferred upon, the
     State Highway Department and the State Highway Commissioner
     created under this act.