H1590B1971A02073 VDL:JB 06/23/07 #90 A02073
AMENDMENTS TO HOUSE BILL NO. 1590
Sponsor: REPRESENTATIVE McCALL
Printer's No. 1971
1 Amend Title, page 1, line 5, by removing the period after
2 "highways" and inserting
3 ; authorizing local taxation for public transportation
4 assistance; repealing provisions relating to public
5 transportation assistance; providing for transportation issues
6 and for sustainable mobility options; further providing, in
7 metropolitan transportation authorities, for board members and
8 for operation; consolidating the Turnpike Organization,
9 Extension and Toll Road Conversion Act and further providing for
10 the Pennsylvania Turnpike Commission; in provisions on the
11 Pennsylvania Turnpike, further providing for definitions, for
12 authorizations and for conversion to toll roads and providing
13 for conversion of Interstate 80, for application and for lease
14 of Interstate 80; in taxes for highway maintenance and
15 construction, providing for definitions; further providing for
16 imposition and for allocation of proceeds; providing for special
17 revenue bonds, for expenses, for application of proceeds of
18 obligations, for trust indenture, for exemption, for pledged
19 revenues, for special revenue refunding bonds, for remedies, for
20 Motor License Fund proceeds, for construction and for funding;
21 and making related repeals.
22 Amend Sec. 1 (Chapter Analysis), page 1, by inserting between
23 lines 13 and 14
24 8602. Local financial support.
25 Amend Sec. 1, page 1, by inserting after line 19
26 § 8602. Local financial support.
27 (a) Imposition.--Notwithstanding any other provision of law,
28 a municipality may obtain financial support for transit systems
29 by imposing one or more of the taxes or surcharges under
30 subsection (b). Money obtained from the imposition shall be
31 deposited into a restricted account of the municipality. The
32 following apply:
33 (1) Money in the restricted account shall be used to
34 meet the requirements of 74 Pa.C.S. §§ 1513(d)(1) (relating
35 to operating program), 1514(c) (relating to asset improvement
36 program) and 1515(d) (relating to new initiatives program).
37 (2) Money in the restricted account beyond that
1 necessary under paragraph (1) shall be used for public
2 passenger transportation, as defined in 74 Pa.C.S. § 1503
3 (relating to definitions).
4 (b) Taxes.--
5 (1) A county may, by ordinance, impose all of the
6 following taxes:
7 (i) A sales tax on each separate sale at retail of
8 tangible personal property or services within the county
9 of either 0.25% or 0.5% of the purchase price. The
10 Department of Revenue shall administer and collect the
11 tax under this subparagraph in accordance with Article II
12 of the act of March 4, 1971 (P.L.6, No.2), known as the
13 Tax Reform Code of 1971, and shall distribute the money
14 to the county. As used in this subparagraph, the terms
15 "purchase price," "sale at retail" and "tangible personal
16 property" shall have the meanings given to them under
17 section 201 of the Tax Reform Code of 1971.
18 (ii) A use tax on each use within the county of
19 tangible personal property purchased at retail and on
20 those services purchased at retail of either 0.25% or
21 0.5% of the purchase price. The ordinance shall provide
22 that the tax shall not be paid if the person has paid the
23 tax imposed under subparagraph (i) or has paid the tax
24 imposed under this subparagraph to the vendor with
25 respect to the use. The Department of Revenue shall
26 administer and collect the tax under this subparagraph in
27 accordance with Article II of the Tax Reform Code of 1971
28 and shall distribute the money to the county. As used in
29 this subparagraph, the terms "purchase price," "tangible
30 personal property" and "vendor" shall have the meanings
31 given to them under section 201 of the Tax Reform Code of
32 1971.
33 (iii) An excise tax of either 0.25% or 0.5% of the
34 rent upon the occupancy of each hotel room in the county.
35 As used in this subparagraph, the terms "hotel,"
36 "occupancy" and "rent" shall have the meanings given to
37 them under section 209(a) of the Tax Reform Code of 1971.
38 (2) A municipality other than a county may, by
39 ordinance, impose a tax on earned income, as defined under
40 section 13 of the act of December 31, 1965 (P.L.1257,
41 No.511), known as The Local Tax Enabling Act, of either 0.25%
42 or 0.5%. The tax under this paragraph shall be in addition to
43 the tax imposed under The Local Tax Enabling Act.
44 (3) A municipality may, by ordinance, impose a tax of up
45 to $2 per day on each rental vehicle. As used in this
46 paragraph, the term "rental vehicle" shall have the meaning
47 given it in section 1601-A of the Tax Reform Code of 1971.
48 (4) A county may impose, under the statutory authority
49 of the county to levy an excise tax on the price of a hotel
50 room rental, an additional excise tax of up to 1% on the
51 price of a hotel room rental.
52 Amend Sec. 2, page 68, line 26, by striking out "a chapter"
53 and inserting
54 chapters
55 Amend Sec. 2 (Chapter Heading), page 68, line 28, by striking
HB1590A02073 - 2 -
1 out all of said line and inserting
2 TRANSPORTATION ISSUES
3 Amend Bill, page 69, by inserting between lines 9 and 10
4 Section 2.1. Title 74 is amended by adding a chapter to
5 read:
6 CHAPTER 15
7 SUSTAINABLE MOBILITY OPTIONS
8 Sec.
9 1501. Scope of chapter.
10 1502. (Reserved).
11 1503. Definitions.
12 1504. Program authorization.
13 1505. Regulations.
14 1506. Fund.
15 1507. Application and approval process.
16 1508. Federal funding.
17 1509. Limitation on decisions, findings and regulations of
18 department.
19 1510. Program oversight and administration.
20 1511. Report to Governor and General Assembly.
21 1512. Coordination.
22 1513. Operating program.
23 1514. Asset improvement program.
24 1515. New initiatives program.
25 1516. Programs of Statewide significance.
26 1517. Program oversight and administration.
27 1518. Retroactive authority.
28 § 1501. Scope of chapter.
29 This chapter relates to sustainable mobility options.
30 § 1502. (Reserved).
31 § 1503. Definitions.
32 The following words and phrases when used in this chapter
33 shall have the meanings given to them in this section unless the
34 context clearly indicates otherwise:
35 "Access to jobs project." A project relating to the
36 development and maintenance of transportation services designed
37 to transport welfare recipients and eligible low-income
38 individuals to and from jobs and activities related to their
39 employment as defined under 49 U.S.C. § 5316 (relating to job
40 access and reverse commute formula grants).
41 "Americans with Disabilities Act." The Americans with
42 Disabilities Act of 1990 (Public Law 101-336, 104 Stat. 327).
43 "Asset maintenance costs." All vehicle maintenance expenses,
44 nonvehicle maintenance and materials expenses and the cost of
45 supplies used in the operation of local transportation
46 organizations and transportation companies.
47 "Award recipient." A recipient of financial assistance under
48 this chapter.
49 "Capital expenditures." All costs of capital projects,
50 including, but not limited to, the costs of acquisition,
51 construction, installation, start-up of operations, improvements
52 and all work and materials incident thereto.
53 "Capital project."
54 (1) A system of public passenger transportation,
55 including rail transportation facilities used for public
56 passenger transportation, which facilities may include the
HB1590A02073 - 3 -
1 following:
2 (i) railway, street railway, subway, elevated and
3 monorail passenger or passenger and rail rolling stock,
4 including self-propelled and gallery cars, locomotives,
5 passenger buses and wires, poles and equipment for the
6 electrification of any of such rails, tracks and
7 roadbeds, guideways, elevated structures, buildings,
8 stations, terminals, docks, shelters and parking areas
9 for use in connection with the rail transportation
10 systems, interconnecting lines and tunnels to provide
11 passenger or passenger and rail service connections
12 between transportation systems, transportation routes,
13 corridors and rights-of-way therefor, but not for public
14 highways;
15 (ii) signal and communication systems necessary or
16 desirable for the construction, operation or improvement
17 of a public passenger system; or
18 (iii) any improvement or overhaul of any vehicle
19 equipment or furnishings of any of the items specified
20 under subparagraphs (i) and (ii) or any part or
21 fractional and undivided co-ownership or leasehold
22 interest in any one or combination of any of the items
23 specified under subparagraphs (i) and (ii) that may be
24 designated as a capital project by the Secretary of
25 Transportation.
26 (2) The term shall include the acquisition of land
27 necessary for the construction of a new project and debt
28 service and the cost of issuance of bond notes and other
29 evidences of indebtedness which a local transportation
30 organization or transportation company is permitted to issue
31 under any law of this Commonwealth.
32 "Commonwealth capital bonds." Evidence of debt incurred by
33 the Commonwealth under the act of February 9, 1999 (P.L.1,
34 No.1), known as the Capital Facilities Debt Enabling Act.
35 "Community transportation service" or "shared ride service."
36 Door-to-door demand transportation that is available to the
37 general public on a nonexclusive basis, operates on a nonfixed
38 route basis and charges a fare to all riders. The term does not
39 include exclusive ride taxi service, charter and sightseeing
40 service, nonpublic transportation, school bus and limousine
41 service.
42 "Community transportation system." A person that provides
43 community transportation service and contracts with the
44 Department of Transportation to receive revenue replacement
45 funds.
46 "Department." The Department of Transportation of the
47 Commonwealth.
48 "Financial assistance." Grants or other types of financial
49 support provided by the Department of Transportation under this
50 chapter.
51 "Fixed guideway system." A fixed-route public transportation
52 service that uses and occupies a separate right-of-way or rail
53 line for the exclusive use of public transportation and other
54 high occupancy vehicles or uses a fixed catenary system and a
55 right-of-way usable by other forms of transportation. The term
56 includes light rail, commuter rail, automated guideway transit,
57 people movers, ferry boat service and fixed guideway facilities
58 for buses such as bus rapid transit and high occupancy vehicles.
59 "Fixed-route public transportation service." Regularly
HB1590A02073 - 4 -
1 scheduled general public transportation that is provided
2 according to published schedules along designated routes, but
3 that allows for route deviation within the published schedule,
4 with specified stopping points for the taking on and discharging
5 of passengers, including public bus and commuter rail systems
6 and other department-approved service. The term does not include
7 exclusive ride taxi service, charter or sightseeing service,
8 nonpublic transportation, school bus and limousine service.
9 "Fund." The Public Transportation Trust Fund established
10 under section 1506 (relating to fund).
11 "Inflation index." An index established by the Department of
12 Transportation that is inflation sensitive.
13 "Intercity bus service." Passenger bus service of 35 miles
14 or more in length that is provided with an over the road bus and
15 operated between two noncontiguous urbanized areas, between an
16 urbanized area located in one county and rural communities
17 located in another county or between rural communities located
18 in different counties and contains all of the following
19 elements:
20 (1) Service that is operated for a fare on a regularly
21 scheduled fixed-route basis.
22 (2) Service that is offered to and utilized by the
23 general public without preconditions of advance reservation
24 or membership in a particular organization.
25 "Intercity passenger rail service." Passenger railroad
26 service that connects two or more urbanized areas and is
27 determined by the Department of Transportation to qualify as
28 intercity service rather than commuter rail service.
29 "Job access and reverse commute project." A project funded
30 by the Federal Transit Administration under Federal law.
31 "Local transportation organization." Any of the following:
32 (1) A political subdivision or a public transportation
33 port or redevelopment authority organized under the laws of
34 this Commonwealth or pursuant to an interstate compact or
35 otherwise empowered to render, contract for the rendering or
36 assist in the rendering of transportation service in a
37 limited area in this Commonwealth, even though it may also
38 render or assist in rendering transportation service in
39 adjacent states.
40 (2) A nonprofit association that directly or indirectly
41 provides public transportation service.
42 (3) A nonprofit association of public transportation
43 providers operating within this Commonwealth.
44 "Materials and supplies." Those categories of expenses as
45 specified in Uniform System of Accounts expense object class
46 504, National Transit Database operating expenses form F 30,
47 National Transit Database, Final Rule, Federal Transit
48 Administration, dated January 15, 1993, or any successor.
49 "Municipality." A city, borough, incorporated town or
50 township.
51 "New fixed guideway system." A newly-constructed fixed
52 guideway system in a corridor or alignment where no such system
53 previously existed.
54 "New freedom program." A public transportation program
55 designed to provide funds to recipients for new public
56 transportation services and public transportation alternatives
57 beyond those required by the Americans with Disabilities Act of
58 1990 (Public Law 101-336, 104 Stat. 327) that assist individuals
59 with disabilities with transportation, including transportation
HB1590A02073 - 5 -
1 to and from jobs and employment support services administered
2 under the provisions of 49 U.S.C. § 5317 (relating to new
3 freedom program.)
4 "New start." The term shall have the same meaning given it
5 in 49 CFR § 611.5 (relating to definitions).
6 "Nonurbanized area." An area within this Commonwealth that
7 does not fall within an area classified as "urbanized" by the
8 United States Bureau of the Census of the United States
9 Department of Commerce in the most recent Census of Population.
10 "Nonvehicle maintenance expenses." The categories of costs
11 associated with the inspection, maintenance and repair of
12 assets, other than vehicles, as specified in Uniform System of
13 Accounts, expense function 042, National Transit Database
14 operating expenses form, F 30, National Transit Database, Final
15 Rule, Federal Transit Administration, dated January 15, 1993, or
16 any successor.
17 "Operating expenses." Total expenses required to continue
18 service to the public and to permit needed improvements in
19 service which are not self-supporting and otherwise for any
20 purpose in furtherance of public passenger transportation,
21 including all State asset maintenance costs. The term does not
22 include expenditures for capital projects unless specific
23 approval is provided by the Department of Transportation.
24 "Operating revenue." The total revenue earned by a local
25 transportation organization or a transportation company through
26 its transit operations. The term includes all of the following:
27 (1) Passenger fares.
28 (2) Reimbursements provided in lieu of fares for senior
29 passengers.
30 (3) Charter, school bus and advertising revenue.
31 (4) Other miscellaneous revenue such as public and
32 private route guarantee funds.
33 "Paratransit service." Transit service operating on a
34 nonfixed-route basis in order to provide complementary
35 transportation service to persons who are functionally unable to
36 use fixed-route transportation, as required by the Americans
37 with Disabilities Act of 1990 (Public Law 101-336, 104 Stat.
38 327).
39 "Passengers." The total of all originating passengers plus
40 transfer passengers carried on fixed-route service and
41 paratransit service.
42 "Public passenger transportation." Transportation within an
43 area that includes a municipality or other built-up place that
44 is appropriate in the judgment of the Department of
45 Transportation to serve commuters or others in the locality,
46 taking into consideration the local patterns and trends of
47 growth by bus or rail or other conveyance, either publicly or
48 privately owned, serving the general public. The term does not
49 include school buses, charter or sightseeing services.
50 "Revenue replacement funds." Payments made to local
51 transportation organizations and transportation companies to
52 offset or partially offset fares.
53 "Revenue vehicle hours." The total amount of time calculated
54 in hours during which vehicles are in service and available for
55 public use in fixed-route service or paratransit service. The
56 term does not include deadhead hours.
57 "Revenue vehicle miles." The total amount of distance
58 calculated in miles during which vehicles are in service and
59 available for public use in fixed-route service or paratransit
HB1590A02073 - 6 -
1 service. The term does not include deadhead miles.
2 "Reverse commute project." A public transportation project
3 designed to transport residents of urbanized and nonurbanized
4 areas to suburban employment opportunities as defined under 49
5 U.S.C. § 5316 (relating to job access and reverse commute
6 formula grants).
7 "Secretary." The Secretary of Transportation of the
8 Commonwealth.
9 "Senior citizen." A person who is at least 65 years of age.
10 "Senior passenger." A senior citizen who rides on fixed
11 route service.
12 "Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
13 known as the Tax Reform Code of 1971.
14 "Transportation company." A person that renders public
15 passenger transportation service.
16 "Urbanized area." A portion of this Commonwealth classified
17 as urbanized by the United States Bureau of the Census of the
18 United States Department of Commerce in the most recent Census
19 of Population.
20 "Vehicle maintenance expenses." The categories of costs
21 associated with the inspection, maintenance and repair of
22 vehicles as specified in Uniform System of Accounts, expense
23 function 041, National Transit Database operating expenses form
24 F 30, National Transit Database, Final Rule, Federal Transit
25 Administration, dated January 15, 1993, or any successor.
26 "Welfare-to-work." Any Federal or State program designed to
27 move individuals from dependency on public welfare programs to
28 self-sufficiency through paid work.
29 § 1504. Program authorization.
30 (a) General.--The department may, within the limitations
31 provided in this chapter, incur costs directly or otherwise
32 provide financial assistance for the purposes and activities
33 enumerated in this chapter.
34 (b) Supplementation of Federal and local funds.--The
35 authority conferred on the department by this section includes,
36 but is not limited to, providing financial assistance for public
37 passenger transportation purposes and to supplement Federal
38 funding, local funding, or both.
39 § 1505. Regulations.
40 (a) General rule.--To effectuate and enforce the provisions
41 of this chapter, the department shall promulgate necessary rules
42 and regulations and prescribe conditions and procedures in order
43 to assure compliance in carrying out the purposes for which
44 financial assistance may be made under this chapter.
45 (b) Temporary regulations.--During the two-year period
46 following the effective date of this section, the department
47 shall promulgate temporary regulations, which regulations shall
48 be exempt from the following:
49 (1) The act of October 15, 1980 (P.L.950, No.164), known
50 as the Commonwealth Attorneys Act.
51 (2) Section 205 of the act of July 31, 1968 (P.L.769,
52 No.240), referred to as the Commonwealth Documents Law.
53 (3) The act of June 25, 1982 (P.L.633, No.181), known as
54 the Regulatory Review Act.
55 Temporary regulations promulgated by the department under this
56 subsection shall expire four years following the effective date
57 of this section.
58 § 1506. Fund.
59 (a) Establishment and deposits.--A special fund is
HB1590A02073 - 7 -
1 established within the State Treasury to be known as the Public
2 Transportation Trust Fund. The following shall be deposited into
3 the fund annually:
4 (1) Funds under 75 Pa.C.S. § 8915.3(8) (relating to
5 lease of Interstate 80).
6 (2) The amounts made available to the department as an
7 executive authorization and an appropriation for the 2007-
8 2008 fiscal year and each fiscal year thereafter from the
9 State Lottery Fund for the Free Transit Program for Senior
10 Citizens established under the act of August 26, 1971
11 (P.L.351, No.91), known as the State Lottery Law. These
12 revenues shall be used to provide free public transportation
13 service to senior citizens when passage is on fixed-route
14 public transportation services, as authorized by Chapter 9 of
15 the State Lottery Law and the free service shall be available
16 to senior citizens at any time during the service provider's
17 regular hours of service. With regard to passage on commuter
18 rail service provided to senior citizens, the fare shall
19 continue to be limited to $1 per trip as provided under
20 Chapter 9 of the State Lottery Law, but the limitation shall
21 be extended to all hours of commuter rail service.
22 (3) Commencing July 1, 2007, 1.22% of the money
23 collected from the tax imposed under Article II of the Tax
24 Reform Code, up to a maximum of $75,000,000.
25 (4) Commencing July 1, 2007, revenues deposited into the
26 Public Transportation Assistance Fund established under
27 Article XXIII of the Tax Reform Code to be used in accordance
28 with subsection (b).
29 (5) Commencing July 1, 2007, 3.03% of the money
30 collected from the tax imposed under Article III of the Tax
31 Reform Code. Within 30 days of the close of a calendar month,
32 3.03% of the taxes received under Article III of the Tax
33 Reform Code in the prior calendar month shall be transferred
34 to the fund.
35 (6) Any other appropriations to the fund.
36 (b) Use of revenues.--
37 (1) Money in the fund shall be used by the department to
38 provide financial assistance to local transportation
39 organizations, transportation companies and agencies and
40 instrumentalities of the Commonwealth under this chapter, for
41 costs incurred directly by the department in the
42 administration of public passenger transportation programs,
43 including under this chapter, and for all other purposes
44 enumerated in this chapter.
45 (2) Money in the fund is appropriated on a continuing
46 basis, upon approval of the Governor, to the department to be
47 used as provided in this chapter. Money in the fund shall not
48 lapse.
49 (c) Programs.--The fund is authorized to provide the
50 following:
51 (1) Financial assistance related to operating expenses
52 to be known as the "operating program." To the extent funds
53 are available, an amount not less than $810,000,000 of the
54 fund shall be allocated to this program in the first fiscal
55 year following the effective date of this section. Money in
56 the fund allocated to the operating program shall not be
57 increased by more than the inflation index in any year.
58 (2) Financial assistance for improvements to capital
59 assets, replacement of capital assets and expansion of
HB1590A02073 - 8 -
1 capital assets to be known as the "asset improvement
2 program." An amount equal to the remaining money in the fund,
3 less the allocations under paragraphs (1), (3) and (4) shall
4 be allocated to this program in the first fiscal year
5 following the effective date of this section. Money in the
6 fund for this program may include proceeds of Commonwealth
7 capital bonds.
8 (3) Financial assistance to fund new or expansions of
9 fixed guideway systems, to be known as the "new initiatives
10 program." An amount not greater than $50,000,000 of the fund
11 shall be allocated to this program in the first fiscal year
12 following the effective date of this section.
13 (4) Financial assistance related to programs of
14 Statewide significance as described in section 1516 (relating
15 to programs of Statewide significance) to be known as the
16 "programs of Statewide significance program." To the extent
17 funds are available, an amount not less than $52,000,000 of
18 the fund shall be allocated to this program in the first
19 fiscal year following the effective date of this section.
20 § 1507. Application and approval process.
21 (a) Application.--An eligible applicant that wishes to
22 receive financial assistance under this chapter shall submit a
23 written application to the department, on a form developed by
24 the department, which shall include the following:
25 (1) The name and address of the applicant.
26 (2) The name and telephone number of a contact person
27 for the applicant.
28 (3) The amount and type of financial assistance
29 requested and the proposed use of the funds.
30 (4) A statement as to the particular need for the
31 financial assistance.
32 (5) A certified copy of a current resolution authorizing
33 submission of the application if the applicant is a governing
34 body.
35 (6) Evidence satisfactory to the department of the
36 commitment for matching funds required under this chapter
37 sufficient to match the projected financial assistance
38 payments at the same times that the financial assistance
39 payments are to be provided.
40 (7) Any other information the department deems necessary
41 or desirable.
42 (b) Approval and award.--Upon determining that an applicant
43 has complied with this chapter, applicable rules and regulations
44 and any other requirement with respect to the financial
45 assistance requested, the department may award financial
46 assistance to the applicant, in which case the department and
47 the applicant shall enter into a financial assistance agreement
48 setting forth the terms and conditions upon which the financial
49 assistance shall be used and the timing of payment of the funds.
50 (c) Restriction on use of funds.--Financial assistance under
51 this chapter shall be used only for activities authorized
52 originally unless the department grants a waiver to the award
53 recipient for a different use of the funds. The department's
54 regulations shall describe circumstances under which it will
55 consider the waivers and information to be included in a request
56 for a waiver. The maximum duration of a waiver shall be one
57 year, and a request for a waiver shall include a plan of
58 corrective action to demonstrate that the award recipient does
59 not have an ongoing need to use financial assistance funds for
HB1590A02073 - 9 -
1 activities other than those for which funds were originally
2 awarded.
3 § 1508. Federal funding.
4 (a) General rule.--The department shall administer the
5 program in this chapter with such flexibility as to permit full
6 cooperation between Federal, State and local governments,
7 agencies and instrumentalities, local transportation
8 organizations and private interests, so as to result in as
9 effective and economical a program as possible.
10 (b) Agreements.--The department may enter into agreements
11 for mutual cooperation between or among the department and a
12 Federal agency, local transportation organization or
13 transportation company concerning a project to be funded with
14 financial assistance under this chapter, including joint
15 applications for Federal grants.
16 (c) General authority of department.--The department may do
17 anything necessary or desirable to secure financial aid or
18 cooperation of a Federal agency in a project funded with
19 financial assistance under this chapter and to comply with a
20 Federal statute or lawful requirement of a Federal agency
21 authorized to administer a program of Federal aid to
22 transportation. The department may enter into a protective
23 agreement with organized labor to the extent required under 49
24 U.S.C. § 5333 (relating to labor standards) in order to obtain
25 Federal grant money for transportation assistance. Protective
26 agreements shall be narrowly drawn and strictly construed to
27 provide no more than the minimum protections required by the
28 United States Department of Labor for the agreements.
29 (d) Direct recipients.--Local transportation organizations
30 that are direct recipients of Federal funding shall be under no
31 obligation to enter into contracts with the department for
32 expenditure of those funds, except that the department may
33 require a contract for expenditure of the State portion of the
34 project assisted by those Federal funds.
35 § 1509. Limitation on decisions, findings and regulations of
36 department.
37 All decisions, findings and regulations made by the
38 department pursuant to this chapter shall be for the purposes of
39 this chapter only and shall not constitute evidence before a
40 regulatory body of this Commonwealth or any other jurisdiction.
41 § 1510. Program oversight and administration.
42 (a) Review and oversight.--The department shall initiate and
43 maintain a program of financial and performance review and
44 oversight for all public transportation programs receiving
45 financial assistance under this chapter. The department may
46 perform independent financial audits of each award recipient.
47 Audits shall be conducted in accordance with generally accepted
48 auditing standards and shall ensure compliance by award
49 recipients with this chapter, department regulations and
50 policies and financial assistance agreements.
51 (b) State Rail Transit Safety Inspection Program.--The
52 department may conduct a State Rail Transit Safety Inspection
53 Program, as may be defined from time to time by the Federal
54 Transit Administration, to meet oversight requirements of the
55 Federal Transit Administration. The public transportation modes
56 covered shall include heavy rail, light rail, trackless trolley
57 bus and inclined plane services and related facilities.
58 § 1511. Report to Governor and General Assembly.
59 The department shall file a public passenger transportation
HB1590A02073 - 10 -
1 performance report with the Governor and the General Assembly by
2 April 30 of each year, covering the prior fiscal year.
3 § 1512. Coordination.
4 Coordination is required in regions where two or more award
5 recipients have services or activities for which financial
6 assistance is being provided under this chapter to assure that
7 the services or activities are provided efficiently and
8 effectively.
9 § 1513. Operating program.
10 (a) Eligible applicants.--The governing body of a
11 municipality, county or instrumentality of either, a
12 Commonwealth agency or instrumentality or a local transportation
13 organization may apply for financial assistance under the
14 operating program.
15 (b) Applications.--In addition to information required under
16 section 1507 (relating to application and approval process), an
17 application for financial assistance under this section shall
18 include the applicant's reasonable estimates of operating
19 revenue and government subsidies sufficient to cover all
20 projected operating expenses.
21 (c) Distribution formula.--The following distribution
22 formula shall be applied by the department with respect to the
23 award of an operating grant:
24 (1) Twenty-five percent of the award amount shall be
25 based on passengers;
26 (2) Ten percent of the award amount shall be based on
27 senior passengers to offset free fares for senior passengers;
28 (3) Thirty-five percent of the award amount shall be
29 based on revenue vehicle hours;
30 (4) Thirty percent of the award amount shall be based on
31 revenue vehicle miles.
32 (d) Local match requirements.--
33 (1) Local or private cash funding shall be provided as a
34 match in the amount of 20% of the financial assistance being
35 provided. The following apply:
36 (i) For the Fiscal Year 2007-2008, the minimum of
37 local or private cash funding required under this
38 paragraph shall be:
39 (A) the match required for Fiscal Year 2006-
40 2007; and
41 (B) 5% of the amount under clause (A).
42 (ii) For each fiscal year after Fiscal Year 2007-
43 2008 until the match required under this paragraph is
44 reached, the minimum of local or private cash funding
45 required under this paragraph shall be:
46 (A) the match required for the immediately
47 preceding fiscal year; and
48 (B) 5% of the amount under clause (A).
49 (iii) There is no maximum on the local or private
50 cash funding required under this paragraph.
51 (2) For financial assistance to a local transportation
52 organization, eligible local matching funds shall consist
53 only of cash contributions provided by one or more
54 municipalities or counties that are members of the local
55 transportation organization. The amount of the match and the
56 time period during which the match must continue to be
57 available shall be specified in the financial assistance
58 agreement. Funding provided by local and private entities,
59 including advertising or naming rights, may be eligible for
HB1590A02073 - 11 -
1 the match to the extent they provide for the cost of transit
2 service that is open to the public. The following shall not
3 be eligible for a local match:
4 (i) Any form of transit operating revenue or other
5 forms of transit income provided by the local
6 transportation organization.
7 (ii) Funds used to replace fares.
8 (3) A county or municipality in a metropolitan area
9 which is a member of a local transportation organization is
10 authorized to provide annual financial assistance from
11 current revenues to the local transportation organization of
12 which it is a member or enter into a long-term agreement for
13 payment of money to assist in defraying the costs of
14 operation, maintenance and debt service of the local
15 transportation organization or of a particular public
16 transportation project of a local transportation
17 organization. The obligation of a municipality or county
18 under an agreement pursuant to this paragraph shall not be
19 considered to be a part of the indebtedness of the county or
20 municipality, nor shall the obligation be deemed to impair
21 the status of any indebtedness of the county or municipality
22 which would otherwise be considered self-sustaining.
23 (4) The following shall apply to the Southeastern
24 Pennsylvania Transportation Authority:
25 (i) The local match provided by each jurisdiction
26 shall be calculated by multiplying the total match
27 required for State funding by the total of route miles
28 provided in that jurisdiction as a percentage of the
29 total route miles operated in all jurisdictions. Where
30 appropriate, a transportation system may calculate the
31 local match by mode or division, or both.
32 (ii) The department shall suspend funding of any
33 capital project within any county that fails to meet its
34 required matching funds requirement under this
35 subsection, and a transportation system shall not expand
36 service into any county that fails to meet its required
37 matching funds under this subsection. During any time in
38 which a county fails to meet its required matching funds
39 under this subsection the county's representative on the
40 governing body of the transporting organization shall
41 become a nonvoting member of the governing body until
42 such time that the county meets its local matching
43 requirements.
44 (e) Performance reviews.--
45 (1) The department may conduct performance reviews of an
46 award recipient that receives financial assistance under this
47 section to determine the efficiency and effectiveness of the
48 financial assistance. Reviews shall be conducted at regular
49 intervals as established by the department in consultation
50 with the management of the award recipient. After completion
51 of a review, the department shall issue a report that:
52 (i) highlights exceptional performance and
53 identifies any problems that need to be resolved;
54 (ii) assesses performance, efficiency and
55 effectiveness of the use of the funds;
56 (iii) makes recommendations on what follow-up
57 actions are required to remedy each problem; and
58 (iv) provides an action plan documenting who should
59 perform the recommended actions and a time frame within
HB1590A02073 - 12 -
1 which they should be performed.
2 (2) The department shall deliver the report to the
3 Governor, to the Transportation Committee of the Senate and
4 to the Transportation Committee of the House of
5 Representatives. The department's regulations shall contain a
6 description of the impact on both the amount of, and future
7 eligibility for, receipt of financial assistance under this
8 chapter based upon the degree to which the local
9 transportation organization complies with the recommendations
10 in the report. The department shall develop a list of best
11 practices revealed by the reports issued under this
12 subsection and shall post them on the department's Internet
13 website.
14 (f) Performance criteria.--Criteria used for the reviews
15 conducted under subsection (e) shall consist of passengers per
16 revenue vehicle hour, operating costs per revenue vehicle hour,
17 operating revenue per revenue vehicle hour, operating costs per
18 passenger and other items as the department may establish. The
19 department's regulations shall set forth the minimum system
20 performance criteria that an award recipient must satisfy.
21 (g) Failure to satisfy minimum performance criteria.--If a
22 performance review conducted under subsection (e) reveals:
23 (1) that the performance of an award recipient's
24 transportation system has decreased compared to performance
25 determined through a prior review, the department may, upon
26 the written request of an award recipient, waive any
27 requirement for a reduction in the amount of financial
28 assistance to be awarded under this section for a reasonable
29 time period to allow the award recipient to bring the system
30 back to the required performance level. The award recipient
31 shall provide written justification for providing a time
32 period longer than two years. In order to obtain the waiver
33 for the period requested, the award recipient must do all of
34 the following:
35 (i) Develop an action plan to improve system
36 performance that contains key measurable milestones. The
37 action plan must be acceptable to the department and must
38 be approved by the department in writing.
39 (ii) Submit quarterly progress reports on the action
40 plan to the department.
41 (2) The department shall review and evaluate the award
42 recipient's progress to determine if the system has improved.
43 If the system has improved, funding will be determined by the
44 formula under subsection (c), and the award recipient will be
45 eligible for full formula funding. If the system has not
46 improved at the end of the time period established for
47 improvement, the waiver will be withdrawn. Expenses incurred
48 by the award recipient as a result of the failure of the
49 award recipient's system to meet the minimum performance
50 criteria shall be borne by the award recipient.
51 (h) Adjustments to minimum performance criteria.--Upon
52 written request of a recipient of financial assistance under
53 this section, the department may approve adjustments to the
54 minimum performance criteria described in subsection (g) in a
55 given year if situations arise that affect performance of the
56 award recipient's system and are out of the award recipient's
57 control. Examples are labor strikes, infrastructure failures and
58 natural disasters. The request must include the award
59 recipient's justification for the adjustment.
HB1590A02073 - 13 -
1 (i) Periodic review of formula.--The department, in
2 consultation with all award recipients, shall review the
3 distribution formula established under subsection (c) at least
4 once every three years and, prior to the start of the next
5 succeeding fiscal year, shall recommend adjustments it deems
6 appropriate. If an adjustment results in a change of five
7 percentage points or less in any category, the department shall
8 forward a notice of the change to the Legislative Reference
9 Bureau for publication in the Pennsylvania Bulletin, and the
10 change shall take effect at the commencement of the next fiscal
11 year. If an adjustment results in a change in excess of five
12 percentage points in any category, the change shall be
13 incorporated into the department's regulations by amendment and
14 shall take effect at the commencement of the next fiscal year
15 following promulgation of the amendment.
16 (j) Needs-based adjustment.--In order to allow an award
17 recipient that was receiving financial assistance under former
18 Chapter 13 (relating to public transportation assistance) prior
19 to the effective date of this section to transition into the
20 funding formula established under subsection (c), the department
21 shall provide the award recipient, as part of the award under
22 this section, with a needs-based adjustment. The needs-based
23 adjustment shall be calculated by increasing the amount that the
24 award recipient received under Chapter 13 for operating expenses
25 and asset maintenance costs in the 2005-2006 fiscal year and
26 increasing the resulting amount by an adjustment factor to
27 assure a funding level consistent with the operating funding
28 needs as identified by the department. Funds remaining after the
29 needs-based adjustment is applied shall be set aside in an
30 operating reserve account to be used at the department's
31 discretion for short-term public passenger transportation needs.
32 The department's regulations shall establish the manner in which
33 the funds in the reserve account may be used.
34 (k) Growth caps.--Each fiscal year after the fiscal year in
35 which the department provides a needs-based adjustment under
36 subsection (i), the department shall determine the maximum
37 percentage increase that an award recipient shall be eligible to
38 receive for operating expenses in addition to an increase tied
39 to the inflation index amount. The maximum percentage increase
40 shall be capped at the inflation index rate of the award
41 recipient's transportation system's passengers per revenue hour,
42 or revenue per revenue vehicle hour performance, falls below
43 peer system average or if the operating cost per revenue hour or
44 operating cost per passenger exceeds the peer system average.
45 Notwithstanding the provisions of this subsection, money
46 available for financial assistance under this section shall at
47 all times be capped by the amount of money in the fund allocated
48 for the operating program.
49 (l) Operating reserve.--The department may establish a
50 limitation on the amount of financial assistance awarded under
51 this section that may be carried over for use in subsequent
52 fiscal years.
53 (m) Certification.--The Commonwealth shall not provide
54 financial assistance to a municipality under this section unless
55 the municipality certifies the amount of its local match under
56 subsection (d).
57 § 1514. Asset improvement program.
58 (a) Eligible applicants.--A local transportation
59 organization, an agency or instrumentality of the Commonwealth,
HB1590A02073 - 14 -
1 an entity responsible for coordinating community transportation
2 program services, or any other person the department deems to be
3 eligible may apply to the department for financial assistance
4 under the asset improvement program. The department shall
5 develop and maintain four-year and twelve-year plans that
6 summarize the capital projects and financial assistance for
7 capital projects based upon cash flow and revenue projections
8 for the fund.
9 (b) Applications.--In addition to information required under
10 section 1507 (relating to application and approval process), an
11 application for financial assistance under this section shall
12 include the following:
13 (1) Evidence satisfactory to the department that the
14 proposed capital project is included in the first year of the
15 applicant's four-year capital program and its federally
16 approved Transportation Improvement Program.
17 (2) If an applicant is requesting financial assistance
18 for replacement of capital assets, evidence satisfactory to
19 the department that the capital assets to be replaced have
20 exceeded the useful life criteria as defined by the
21 department. At its discretion, the department may approve
22 funding to replace capital assets that do not exceed the
23 useful life criteria if the applicant provides documentation
24 acceptable to the department to justify the early replacement
25 of the capital assets.
26 (3) If the applicant is requesting financial assistance
27 for expansion of capital assets, evidence satisfactory to the
28 department that the applicant will have sufficient future
29 annual operating funds to support the proposed expansion of
30 the assets.
31 (4) Any other information required by the department,
32 including a return on investment analysis or a life cycle
33 cost analysis, or both.
34 (c) Local match requirements.--Financial assistance under
35 this section shall be matched by local or private cash funding
36 in an amount not less than 20% of the amount of the financial
37 assistance. The source of funds for the local match shall be
38 subject to the requirements of section 1513(d) (relating to
39 operating program). Each capital project shall be based on the
40 plan approved by the department.
41 (d) Conditions for receipt of bond funding.--An applicant
42 may receive proceeds of Commonwealth capital bonds from the fund
43 for financial assistance under this section if all of the
44 following conditions are met:
45 (1) The applicant's project has been authorized by a
46 capital budget project itemization act.
47 (2) The applicant's project shall have been included in
48 the department's approved annual release request approving
49 the use of the funds for the proposed capital project in the
50 fiscal year in which the funds are expected to be expended.
51 (3) The department shall have approved the underlying
52 application for the capital project.
53 (4) The project has a 20-year or longer useful life.
54 (e) Priorities.--The award of financial assistance under
55 this section shall be subject to the following set of priorities
56 in descending order of significance unless a compelling return
57 on investment analysis for a project in a lower significant
58 category is provided to and approved by the department:
59 (1) Funds required to support existing local bond issues
HB1590A02073 - 15 -
1 currently supported with State revenue sources, such as debt
2 service and asset leases. The Commonwealth pledges to and
3 agrees with any person, firm or corporation holding any bonds
4 previously issued by, or any other debt incurred by, a local
5 transportation organization, and secured in whole or part by
6 a pledge of the funds provided to the local transportation
7 organization from the Public Transportation Assistance Fund
8 established under Article XXIII of the Tax Reform Code, that
9 the Commonwealth will not limit or alter rights vested in a
10 local transportation organization in any manner inconsistent
11 with obligations of the local transportation organization to
12 the obligees of the local transportation organization until
13 all bonds previously issued or other debt incurred, together
14 with the interest thereon, is fully paid or provided for.
15 (2) Funds required to match federally approved capital
16 projects funded under 49 U.S.C. §§ 5307 (relating to
17 urbanized area formula grants) and 5309 (relating to capital
18 investment grants and loans) and other federally approved
19 capital projects.
20 (3) Other non-Federal capital projects as determined by
21 the department, which shall be further subject to the
22 following set of priorities in descending order of
23 significance:
24 (i) Essential emergency asset improvement projects.
25 (ii) Standard replacement of existing assets that
26 have exceeded their useful life.
27 (iii) Asset improvement projects to extend the
28 useful life of the affected assets.
29 (iv) Acquisition of new assets and other acceptable
30 purposes, other than projects to be funded under the new
31 initiatives program, as determined by the department.
32 (f) Bonding by award recipients.--With the approval of the
33 department, an award recipient that is allowed by its enabling
34 statute to issue bonds may do so for the purpose of financing a
35 multiyear capital project. The bonds shall be issued in
36 accordance with the provisions of the award recipient's enabling
37 statute. The department shall enter into an agreement with the
38 award recipient providing that payments of the capital funds
39 sufficient to satisfy requirements of the bonds issued be made
40 directly to the trustee and bond holders until such time as the
41 bonds are retired.
42 (g) Certification.--The Commonwealth shall not provide
43 financial assistance to a municipality under this section unless
44 the municipality certifies the amount of its local match under
45 subsection (c).
46 § 1515. New initiatives program.
47 (a) Eligible applicants.--Persons eligible to apply for
48 financial assistance under the asset improvement program shall
49 also be eligible to apply for financial assistance under the new
50 initiatives program.
51 (b) Applications.--In addition to the information required
52 under section 1507 (relating to application and approval
53 process), an application for financial assistance under this
54 section shall include all of the information required in an
55 application for financial assistance under section 1514
56 (relating to asset improvement program). If the application is
57 for a proposed expansion of a capital asset, the application
58 shall also contain evidence satisfactory to the department that
59 the applicant will have sufficient future annual operating funds
HB1590A02073 - 16 -
1 to support the proposed expansion.
2 (c) Limitation.--In making awards of financial assistance
3 under this section, the department shall give priority to
4 applicants that intend to use the funds in satisfaction of the
5 local matching portion of federally approved projects funded
6 pursuant to 49 U.S.C. § 5309 (relating to capital investment
7 grants and loans). The department may fund projects that do not
8 receive funding from the Federal New Starts Program if the
9 applicant can provide sufficient justification that the project
10 can meet all of the following requirements:
11 (1) Investments in existing service areas have been
12 optimized.
13 (2) An analysis reveals a reasonable return on
14 investment.
15 (3) Identification of the public benefit of the project.
16 (4) Required local funds are available to pay any
17 required local match for the project and ongoing operating
18 costs.
19 (5) There exists local technical ability and capacity to
20 manage, construct and operate the project.
21 (6) The project is supported by the adoption of an
22 integrated land use plan by local municipalities.
23 (d) Local match requirements.--Financial assistance under
24 this section shall be matched by local or private cash funding
25 in an amount not less than 100% of the amount of the grant. The
26 source of funds for the local match shall be subject to the
27 requirements of section 1513(d) (relating to operating program).
28 (e) Certification.--The Commonwealth shall not provide
29 financial assistance to a municipality under this section unless
30 the municipality certifies the amount of its local match under
31 subsection (d).
32 § 1516. Programs of Statewide significance.
33 (a) General rule.--Money in the fund allocated for programs
34 of Statewide significance shall be used by the department to
35 support public transportation programs, activities and services
36 not otherwise fully funded through the operating program,
37 capital program or asset improvement program. These include the
38 following:
39 (1) The Persons with Disabilities Program.
40 (2) Intercity rail and bus services.
41 (3) Community transportation capital and service
42 stabilization.
43 (4) The Welfare to Work Program and matching funds for
44 Federal programs with similar intent.
45 (5) Demonstration and research projects.
46 (6) Technical assistance.
47 (7) (Reserved).
48 (8) (Reserved).
49 (9) (Reserved).
50 (10) (Reserved).
51 (11) Other public passenger transportation programs
52 initiated by the department.
53 (b) Persons with disabilities.--The department shall
54 establish and administer a program providing reduced fares to
55 persons with disabilities on community transportation services
56 and to provide financial assistance for start-up, administrative
57 and capital expenses related to reduced fares for persons with
58 disabilities. All of the following shall apply:
59 (1) A community transportation system operating in the
HB1590A02073 - 17 -
1 Commonwealth other than in counties of the first and second
2 class may apply for financial assistance under this
3 subsection.
4 (2) The department may award financial assistance under
5 this subsection for program start-up and for continuing
6 capital expenses to offset administrative and capital
7 expenses. For community transportation trips made by eligible
8 persons with disabilities, financial assistance may be
9 awarded to an eligible community transportation system to
10 reimburse the system for up to 85% of the fare established
11 for the general public for each trip which is outside of a
12 fixed-route and paratransit service areas and not eligible
13 for funding from any other program or funding source. The
14 person making the trip or an approved third-party sponsor
15 shall contribute the greater of 15% of the fare established
16 for the general public or the Americans with Disabilities Act
17 complementary paratransit fare.
18 (c) Intercity transportation.--The department is authorized
19 to provide financial support for an efficient and coordinated
20 intercity common carrier surface transportation program,
21 consisting of both intercity rail and intercity bus
22 transportation, with the intent of sustaining strong intercity
23 connections. All of the following shall apply:
24 (1) An intercity passenger rail service provider, a
25 local transportation organization, an agency or
26 instrumentality of the Commonwealth and a transportation
27 company that provides intercity public transportation service
28 may apply for financial assistance under this subsection. The
29 department is authorized to enter into joint service
30 agreements with a railroad company, any other agency or
31 instrumentality of the Commonwealth, a Federal agency or an
32 agency or instrumentality of any other jurisdiction relating
33 to property, buildings, structures, facilities, services,
34 rates, fares, classifications, dividends, allowances or
35 charges, including charges between intercity rail passenger
36 service facilities, or rules or regulations pertaining
37 thereto, for or in connection with or incidental to
38 transportation in whole or in part upon intercity rail
39 passenger service facilities.
40 (2) Operating assistance and capital assistance may be
41 provided for intercity bus and rail services as determined by
42 the department.
43 (3) For financial assistance to a transportation
44 company, eligible matching funds shall consist only of cash
45 income generated by the transportation company from its
46 activities, other than the provision of public passenger
47 transportation service, and contributed by the transportation
48 company in the amount and for the time period specified in
49 the financial assistance agreement.
50 (4) Local match requirements are as follows:
51 (i) For intercity bus operating and capital
52 assistance, the department shall require a local match by
53 local or private cash funding in an amount equal to 100%
54 of the amount of the financial assistance being provided.
55 (ii) For intercity rail operating and capital
56 assistance, the department shall require a local match on
57 a case-by-case basis, taking into account the best
58 interests of the Commonwealth.
59 (5) For purposes of this subsection, "local match" is
HB1590A02073 - 18 -
1 defined as local revenue obtained from other nonsubsidized
2 services, such as charter, school bus or profits realized
3 from other intercity bus services. Local match shall not
4 include any funds received from Federal or State sources.
5 (d) Community transportation.--
6 (1) The department is authorized to provide financial
7 assistance under this section for all of the following:
8 (i) Capital expenditures for the provision of
9 community transportation service.
10 (ii) To stabilize current service and fares.
11 (iii) To provide advice or technical assistance to
12 analyze and enhance community transportation system
13 resources and services.
14 (iv) To maximize available funding including Federal
15 dollars.
16 (v) To ensure equitable cost sharing.
17 (2) The governing body of a county, other than a county
18 of the first or second class, or a transportation company
19 designated by the governing body of the county as the
20 coordinator of community transportation service, and an
21 agency or instrumentality of the Commonwealth may apply for
22 financial assistance under this subsection subject to all of
23 the following:
24 (i) An applicant for financial assistance for
25 capital expenditures for the provision of public
26 community transportation service shall certify to the
27 department that it has taken all reasonable steps to
28 coordinate local service for the elderly and persons with
29 disabilities and that the services to be offered with the
30 capital assets do not duplicate existing fixed-route
31 services.
32 (ii) The governing body of a county or the
33 coordinator described under this paragraph shall not be
34 eligible for financial assistance for service
35 stabilization if any of the following apply:
36 (A) The coordinator receives financial
37 assistance under the operating program established
38 under this chapter.
39 (B) The coordinator is a private for-profit
40 provider.
41 (3) Financial assistance for service stabilization may
42 only be provided for the following purposes:
43 (i) Short-term, long-term and strategic planning.
44 (ii) Technology investment.
45 (iii) Training programs designed to enhance
46 transportation management and staff expertise.
47 (iv) Offsetting operating expenses that cannot be
48 covered by fare revenue due to emergencies.
49 (v) Marketing activities.
50 (vi) Other stabilization purposes approved by the
51 department.
52 (4) The department shall give high priority to providing
53 financial assistance under this subsection as match for
54 Federal funding to support capital projects for community
55 transportation systems.
56 (5) The department shall conduct a study to evaluate the
57 effectiveness and efficiency of community transportation
58 service delivery as it relates to human service programs. The
59 Department of Public Welfare, the Office of the Budget and
HB1590A02073 - 19 -
1 the Department of Aging and other appropriate Commonwealth
2 agencies identified by the department shall participate and
3 fully support the study to achieve the intended purposes.
4 Within two years following the effective date of this
5 section, these agencies shall make recommendations to the
6 Governor and the Majority and Minority chairpersons of the
7 Transportation Committee of the Senate and the Majority and
8 Minority chairpersons of the Transportation Committee of the
9 House of Representatives for improving coordination and
10 efficiency of human services and community transportation.
11 (d) Welfare-to-work and Federal programs match.--The
12 department is authorized to provide financial assistance under
13 this section to design and implement projects and services and
14 to reimburse award recipients for the expenses associated with
15 the projects and services that identify and address public
16 passenger transportation and related barriers preventing
17 individuals eligible for participation in the Federal welfare-
18 to-work program from securing and maintaining employment and
19 from accessing community services and facilities. All of the
20 following shall apply:
21 (1) A local transportation organization, a
22 transportation company designated by a county as the
23 coordinator of community transportation services and any
24 other person approved by the department may apply to the
25 department for financial assistance under this subsection.
26 (2) Financial assistance awarded under this subsection
27 shall be used for any of the following purposes:
28 (i) Fixed-route service subsidy.
29 (ii) Contracted transportation services.
30 (iii) Fixed-route fare discounts.
31 (iv) Community transportation fare discounts.
32 (v) Taxi fare discounts.
33 (vi) Mileage reimbursement.
34 (vii) Vehicle purchase, insurance, maintenance and
35 repair.
36 (viii) Driver education classes.
37 (ix) Administrative expenses.
38 (x) Case management expenses.
39 (xi) Any other activities consistent with the
40 transportation related elements of the welfare-to-work
41 program.
42 (3) The department shall give high priority to providing
43 financial assistance under this subsection as match for
44 Federal funding to support projects with similar purposes and
45 eligible uses, including the Federal Job Access Reverse
46 Commute and New Freedoms programs.
47 (e) Technical assistance and demonstration.--The department
48 is authorized to provide financial assistance under this section
49 for technical assistance, research and short-term demonstration
50 projects. All of the following shall apply:
51 (1) A local transportation organization or an agency or
52 instrumentality of the Commonwealth may apply to the
53 department for financial assistance under this subsection.
54 (2) Financial assistance provided under this subsection
55 may be used for reimbursement for any approved operating or
56 capital costs related to technical assistance and
57 demonstration program projects. Financial assistance for
58 short-term demonstration projects may be provided at the
59 department's discretion on an annual basis based on the level
HB1590A02073 - 20 -
1 of financial commitment provided by the award recipient to
2 provide ongoing future funding for the project as soon as the
3 project meets the criteria established by the department and
4 the award recipient. Financial assistance for this purpose
5 shall not be provided for more than three fiscal years.
6 Financial assistance may be provided to meet any short-term
7 emergency need that requires immediate attention and cannot
8 be funded through other sources.
9 (3) Financial assistance under this subsection provided
10 to a local transportation organization shall be matched by
11 local or private cash funding in an amount not less than 3
12 1/3% of the amount of the financial assistance being
13 provided. The sources of funds for the local match shall be
14 subject to the requirements of section 1513(d) (relating to
15 operating program).
16 § 1517. Program oversight and administration.
17 The department is authorized to use available money in the
18 fund to cover the costs incurred by the department in
19 administering all of its public passenger transportation funding
20 programs, including those established under this chapter, and
21 incurred in the carrying out of its responsibilities with
22 respect to the programs.
23 § 1518. Retroactive authority.
24 (a) Date of project.--Financial assistance may be awarded
25 under this chapter by the department with reference to an
26 appropriate project irrespective of when it was first commenced
27 or considered and regardless of whether costs with respect to
28 the project were incurred prior to the time the financial
29 assistance is applied for or provided.
30 (b) Capital projects.--
31 (1) For capital projects, the applicant must obtain
32 approval in writing from the department prior to incurring
33 any expenses for which the applicant may later seek
34 reimbursement.
35 (2) Notwithstanding paragraph (1), approval by the
36 department shall not constitute an approval of the
37 applicant's underlying request for financial assistance.
38 (3) By providing preapproval under this subsection, the
39 department may recognize any local funds already expended as
40 satisfying the local match requirement if and when the
41 applicant's application is approved.
42 Section 2.2. Sections 1713(a) and 1715(a) of Title 74 are
43 amended to read:
44 § 1713. Appointment of board members.
45 (a) Appointment.--Except as provided in subsection (d) with
46 respect to the continuation in office of members of the board of
47 any authority established under the former provisions of Article
48 III of the act of January 22, 1968 (P.L.42, No.8), known as the
49 Pennsylvania Urban Mass Transportation Law, or the former
50 provisions of Chapter 15 (relating to metropolitan
51 transportation authorities), at any time after the effective
52 date of this chapter:
53 (1) The Governor may appoint as a member of the board
54 one person who may be an ex officio appointee from among the
55 various officials in this Commonwealth and whose term as a
56 board member shall run concurrently with that of his
57 Commonwealth position, if any, or the term of the appointing
58 Governor, whichever is shorter.
59 (2) The Majority Leader and the Minority Leader of the
HB1590A02073 - 21 -
1 Senate and the Majority Leader and the Minority Leader of the
2 House of Representatives may each appoint one person to serve
3 as a board member, whose term shall be concurrent with the
4 term and who shall serve at the pleasure of the appointing
5 legislative leader.
6 (3) The county commissioners or the county council in
7 each county and, in any county of the first class containing
8 a city of the first class, the mayor, with the approval of
9 the city council, may appoint [two] persons from each county
10 to serve as board members[.] as follows:
11 (i) Two members for counties which contribute less
12 than 7.5% of total local match required for State
13 operating financial assistance.
14 (ii) Three members for counties which contribute at
15 least 7.5% but less than 25% of total local match
16 required for State operating financial assistance.
17 (iii) Four members for counties which contribute at
18 least 25% of total local match required for State
19 operating financial assistance.
20 (4) On the effective date of this paragraph, any county
21 which has a member of the board in excess of the number
22 allotted under paragraph (3) will lose an appointment to the
23 board upon the expiration of the term of the member whose
24 term expires next, or if there is a vacancy, may not appoint
25 a person to fill the vacancy.
26 (5) The Secretary of Budget.
27 (6) The Secretary of Transportation or his deputy
28 secretary shall be nonvoting members.
29 (7) Each member appointed by a county shall have a
30 professional background expertise or substantial experience
31 in one or more of the following areas:
32 (i) Transportation.
33 (ii) Finance.
34 (iii) Law.
35 (iv) Tourism.
36 (v) Ridership community groups.
37 (vi) Land use and urban planning.
38 * * *
39 § 1715. Meetings, quorum, officers and records.
40 (a) Meetings.--Regular meetings of the board shall be held
41 in the metropolitan area at least once in each calendar month
42 except July or August, the time and place of the meetings to be
43 fixed by the board. A majority of the board shall constitute a
44 quorum for the transaction of business. All action of the board
45 shall be by resolution, and the affirmative vote of a majority
46 of all the members shall be necessary for the adoption of any
47 resolution. No action by the board to which an express objection
48 has been made, under this section, by a board member or members
49 representing a county or counties having one-third or more of
50 the population of the metropolitan area, as determined by the
51 most recent decennial census, shall be carried unless supported
52 at a subsequent regular meeting of the board by the votes of at
53 least [three-quarters] 70% of the voting membership of the
54 board. In case of disagreement between members representing the
55 same county, each member shall be deemed to represent [one-half]
56 an equal proportion of the population of that county.
57 * * *
58 Section 2.3. Title 74 is amended by adding a chapter to
59 read:
HB1590A02073 - 22 -
1 CHAPTER 81
2 TURNPIKE
3 Sec.
4 8101. Scope of chapter.
5 8102. Definitions.
6 8103. (Reserved).
7 8104. Status of turnpike revenue bonds, notes or other
8 obligations.
9 8105. Commission.
10 8106. Exercise of commission powers.
11 8107. Commission powers and duties.
12 8108. Expenses and bonding of commission members.
13 8109. Acquisition of property rights by commission.
14 8110. Procedural requirements of acquisition.
15 8111. Entry and possession of property condemned.
16 8112. Issuance of turnpike revenue bonds or other
17 obligations.
18 8113. Obligation proceeds restricted and lien created.
19 8114. Trust indenture authorized.
20 8115. Commission and obligations tax exempt.
21 8116. Collection and disposition of tolls and other revenue.
22 8116.1. Electronic toll collection.
23 8117. Refunding bonds.
24 8118. Rights of obligation holders and trustees.
25 8119. Authority granted to secretary.
26 8120. Construction of chapter.
27 § 8101. Scope of chapter.
28 This chapter relates to turnpike organization, extension and
29 toll road conversion.
30 § 8102. Definitions.
31 The following words and phrases when used in this chapter
32 shall have the meanings given to them in this section unless the
33 context clearly indicates otherwise:
34 "Commission." The Pennsylvania Turnpike Commission.
35 "Cost of the turnpikes." The term includes the cost of:
36 (1) Constructing turnpikes, connecting roads, storm
37 water management systems, tunnels and bridges.
38 (2) Lands, property rights, rights-of-way, easements and
39 franchises acquired by purchase or other means deemed
40 necessary or convenient for construction.
41 (3) Machinery and equipment, financing charges and
42 interest prior to construction, during construction and for
43 one year after completion of construction.
44 (4) Traffic estimates, engineering and legal expenses,
45 plans, specifications, surveys, cost and revenue estimates,
46 other expenses necessary or incident to determining the
47 feasibility or practicability of the enterprise,
48 administrative and legal expense and other expenses as may be
49 necessary or incident to financing authorized in this
50 chapter.
51 (5) Condemnation or other means of acquisition of
52 property necessary for the construction and operation.
53 (6) An obligation or expense contracted for by the
54 commission with the department or with the United States or a
55 Federal agency for any of the following:
56 (i) Traffic surveys, preparation of plans and
57 specifications, supervision of construction and other
58 engineering and administrative and legal services and
59 expenses in connection with the construction of the
HB1590A02073 - 23 -
1 turnpike or any of the connecting roads, storm water
2 management systems, tunnels and bridges.
3 (ii) Costs of reimbursing the Federal Government
4 pursuant to the mandates of the Federal law for Federal
5 funds expended for interstate or other highways which are
6 to be made part of the turnpike system pursuant to this
7 chapter.
8 "Department." The Department of Transportation of the
9 Commonwealth.
10 "Electronic toll collection." A system of collecting tolls
11 or charges that is capable of charging an account holder for the
12 prescribed toll by electronic transmission of information
13 between a device on a vehicle and a device in a toll lane at a
14 toll collection facility.
15 "Lessee." A person, corporation, firm, partnership, agency,
16 association or organization that rents, leases or contracts for
17 the use of a vehicle and has exclusive use of the vehicle for
18 any period of time.
19 "Lessor." A person, corporation, firm, partnership, agency,
20 association or organization engaged in the business of renting
21 or leasing vehicles to any lessee under a rental agreement,
22 lease or other agreement under which the lessee has the
23 exclusive use of the vehicle for any period of time.
24 "Operator." An individual that uses or operates a vehicle
25 with or without permission of the owner.
26 "Owner." Except as provided under section 8116.1(e)
27 (relating to electronic toll collection), an individual,
28 copartnership, association or corporation having title or
29 interest in a property right, easement or franchise authorized
30 to be acquired under this chapter.
31 "Secretary." The Secretary of Transportation of the
32 Commonwealth.
33 "Toll road conversion." The inclusion within the turnpike
34 system and the imposition of tolls on the system of a highway
35 that is presently toll free.
36 "Turnpikes." Any of the following:
37 (1) The turnpike, turnpike extensions and turnpike
38 improvements.
39 (2) Toll-free roads to be converted to toll roads under
40 this chapter.
41 (3) Related storm water management systems, tunnels and
42 bridges, property rights, easements and franchises deemed
43 necessary or convenient for the construction or the operation
44 of the turnpike, turnpike extension, turnpike improvement and
45 toll-free roads.
46 "Vehicle." The term as it is defined under 75 Pa.C.S. § 102
47 (relating to definitions).
48 "Violation enforcement system." A vehicle sensor, placed in
49 a location to work in conjunction with a toll collection
50 facility, which automatically produces a videotape or
51 photograph, microphotograph or other recorded image of the rear
52 portion of each vehicle at the time the vehicle is used or
53 operated in violation of the toll collection regulations. The
54 term includes any other technology which identifies a vehicle by
55 photographic, electronic or other method.
56 § 8103. (Reserved).
57 § 8104. Status of turnpike revenue bonds, notes or other
58 obligations.
59 (a) General rule.--The turnpike revenue bonds, notes or
HB1590A02073 - 24 -
1 other obligations issued under the provisions of this chapter
2 shall not be deemed to be a debt of the Commonwealth or a pledge
3 of the faith and credit of the Commonwealth, but bonds, notes or
4 other obligations shall be payable solely from the revenues of
5 the commission, including tolls, or from funds as may be
6 available to the commission for that purpose.
7 (b) Statement required.--All bonds, notes or other
8 obligations shall contain a statement on their face that the
9 Commonwealth is not obligated to pay the same or the interest
10 thereon except from revenues of the commission, including tolls,
11 or from funds as may be available to the commission for that
12 purpose and that the faith and credit of the Commonwealth is not
13 pledged to the payment of the principal or interest of the
14 bonds, notes or other obligations.
15 (c) Pledge of Commonwealth prohibited.--The issuance of
16 turnpike revenue bonds, notes or other obligations under the
17 provisions of this chapter shall not directly or indirectly or
18 contingently obligate the Commonwealth to levy or to pledge any
19 form of taxation or to make any appropriation for their payment.
20 § 8105. Commission.
21 (a) Members.--
22 (1) Notwithstanding any other law to the contrary,
23 vacancies in the membership of the commission on or after the
24 effective date of this subsection shall be filled as follows:
25 (i) The first vacancy shall be filled by a member to
26 be appointed by the Majority Leader of the Senate.
27 (ii) The second vacancy shall be filled by a member
28 to be appointed by the Minority Leader of the Senate.
29 (iii) The succeeding two vacancies shall be filled
30 by members to be appointed by the Governor.
31 (2) Paragraph (1) shall apply to a vacancy on the
32 commission which has occurred for any reason, but only as to
33 a member serving on the effective date of this subsection.
34 (3) Notwithstanding any other law to the contrary, the
35 Majority Leader of the House of Representatives and the
36 Minority Leader of the House of Representatives shall each
37 appoint one additional member to serve on the commission.
38 (4) A vacancy occurring during the term of a member
39 appointed in accordance with this subsection shall be filled
40 in a like manner only for the unexpired appointive term of
41 the member whose office has become vacant.
42 (5) Members appointed under the provisions of this
43 subsection shall serve for a term of four years. Upon the
44 expiration of this term, an appointed member may continue to
45 hold office for 90 days or until a successor shall be duly
46 appointed and qualified, whichever period is shorter, but
47 shall not continue to hold office thereafter unless
48 reappointed in accordance with law.
49 (6) Vacancies filled under paragraph (1) and subsequent
50 appointments made to the commission shall be without the
51 advice and consent of the Senate.
52 (a.1) Advisory committee.--
53 (1) There is hereby established a Pennsylvania Turnpike
54 Advisory Committee, which shall be composed of the following
55 members:
56 (i) The Secretary of Community and Economic
57 Development.
58 (ii) The Secretary of Revenue.
59 (iii) The State Treasurer.
HB1590A02073 - 25 -
1 (iv) The chairman and minority chairman of the
2 Transportation Committee of the Senate.
3 (v) The chairman and minority chairman of the
4 Transportation Committee of the House of Representatives.
5 (vi) Eight members of the public representing the
6 area of concern specified who shall have extensive
7 experience and knowledge of transportation activities
8 throughout this Commonwealth to be appointed by the
9 Governor as follows:
10 (A) Two representatives of the engineering
11 community who are licensed and registered pursuant to
12 the act of May 23, 1945 (P.L.913, No.367), known as
13 the Engineer, Land Surveyor and Geologist
14 Registration Law.
15 (B) Two representatives from the highway
16 construction industry who have at least five years of
17 highway construction and planning experience.
18 (C) Two representatives from organized labor
19 unions.
20 (D) One member who shall be a certified public
21 accountant.
22 (E) One member from the general public with at
23 least five years of experience in transportation
24 finance and infrastructure.
25 (2) Each of the members of the committee may designate a
26 representative to serve in his stead. A member who designates
27 a representative shall notify the chairman in writing of the
28 designation.
29 (3) The term of all members of the committee appointed
30 by the Governor shall be for three years. Any member of the
31 committee may be reappointed for no more than two full
32 successive terms. Any person appointed to fill a vacancy
33 occurring prior to the expiration of the term to which his
34 predecessor was appointed shall serve only for the unexpired
35 term. Each member shall serve until the appointment of a
36 successor.
37 (4) (i) The committee shall meet at least four times
38 every 12 months, but may hold such additional meetings as
39 are called by the chairman. The chairman shall provide
40 notice at least 14 days in advance for regular meetings
41 and provide a minimum of three days' notice for special
42 meetings. A majority of the appointed members shall
43 constitute a quorum for the conduct of business.
44 (ii) Minutes of meetings shall be prepared by the
45 secretary and filed with the committee and distributed to
46 all members. All records shall be a matter of public
47 record.
48 (iii) The public members of the committee shall be
49 allowed reasonable per diem expenses as established and
50 paid for by the commission. The commission shall provide
51 appropriate staff support to enable the committee to
52 properly carry out its functions.
53 (5) The committee shall have the power and duty to
54 consult and advise the Pennsylvania Turnpike Commission in
55 assisting in developing, operating and financing tolled
56 interstate systems within this Commonwealth in a timely,
57 efficient and cost-effective manner. Specifically, the
58 committee shall have the authority to conduct a study on the
59 feasibility of instituting toll collections on major
HB1590A02073 - 26 -
1 interstates that pass through the State.
2 (6) The committee shall submit an annual report of its
3 deliberations and conclusions to the Governor and members of
4 the General Assembly by November 30 of each year.
5 (7) The Governor shall appoint one member of the
6 committee as chairperson. The members of the committee shall
7 annually elect a vice chairperson, a secretary and a
8 treasurer from among the members appointed to the committee.
9 (d) Secretary of Transportation.--The provisions of
10 subsection (a.1) shall not apply to the appointment of the
11 secretary who shall continue to be appointed and to serve as a
12 member of the commission ex officio in accordance with law.
13 (e) Chairman.--A majority of the members of the commission
14 shall elect a member of the commission to serve as chairman.
15 Upon the appointment and qualification of any new member to
16 serve on the commission, the office of chairman, and the
17 positions of all other officers created by law, shall be deemed
18 vacant and a new chairman and other officers shall be elected by
19 a majority of the members of the commission.
20 (f) Actions by the commission.--Notwithstanding any other
21 law, court decision, precedent or practice to the contrary, any
22 and all actions by or on behalf of the commission shall be taken
23 solely upon the approval of a majority of the members to the
24 commission. A majority of the members of the commission shall
25 mean five members of the commission. The term "actions by or on
26 behalf of the commission" means any action whatsoever of the
27 commission, including, but not limited to, the hiring,
28 appointment, removal, transfer, promotion or demotion of any
29 officers and employees; the retention, use or remuneration of
30 any advisors, counsel, auditors, architects, engineers or
31 consultants; the initiation of any legal action; the making of
32 any contracts, leases, agreements, bonds, notes or covenants;
33 the approval of requisitions, purchase orders, investments and
34 reinvestments; and the adoption, amendment, revision or
35 rescission of any rules and regulations, orders or other
36 directives. The chairman, vice chairman or any other officer or
37 employee of the commission may take no action by or on behalf of
38 the commission except as expressly authorized by a majority of
39 the members of the commission.
40 (g) Compensation.--The annual salary of the Chairman of the
41 Pennsylvania Turnpike Commission shall be $28,500, and the
42 annual salary of the remaining members of the Pennsylvania
43 Turnpike Commission shall be $26,000. These salaries shall be
44 paid in equal installments every other week.
45 § 8106. Exercise of commission powers.
46 The exercise by the commission of the powers conferred by
47 this chapter in the construction, operation and maintenance of
48 the turnpikes and in effecting toll road conversions shall be
49 deemed and held to be an essential governmental function of the
50 Commonwealth.
51 § 8107. Commission powers and duties.
52 (a) Powers and duties of commission.--The commission may:
53 (1) Maintain a principal office at a place designated by
54 the commission.
55 (2) Contract and be contracted within its own name.
56 (3) Sue and be sued in its own name, plead and be
57 impleaded. Any civil action against the commission shall be
58 brought only in the courts in which actions may be brought
59 against the Commonwealth.
HB1590A02073 - 27 -
1 (4) Have an official seal.
2 (5) Make necessary rules and regulations for its own
3 government and in control of traffic.
4 (6) Acquire, hold, accept, own, use, hire, lease,
5 exchange, operate and dispose of personal property, real
6 property and interests in real property and make and enter
7 into all contracts and agreements necessary or incidental to
8 the performance of its duties and the execution of its powers
9 under this chapter and employ engineering, traffic,
10 architectural and construction experts and inspectors,
11 attorneys and other employees as may in its judgment be
12 necessary and fix their compensation.
13 (7) (i) Provide grade separations at its own expense
14 with respect to all public roads, State highways and
15 interstate highways intersected by the turnpikes and to
16 change and adjust the lines and grades thereof so as to
17 accommodate the same to the design for grade separation.
18 (ii) The damages incurred in changing and adjusting
19 the lines and grades of public roads, State highways and
20 interstate highways shall be ascertained and paid by the
21 commission in accordance with 26 Pa.C.S. (relating to
22 eminent domain).
23 (iii) If the commission shall find it necessary to
24 provide a grade separation or change the site of any
25 portion of any interstate highway, State highway or
26 public road, or vacate the same, the commission shall
27 cause it to be reconstructed and restored at the
28 commission's expense on the most favorable location and
29 in as satisfactory a manner as the original road or
30 vacate it as the case may be.
31 (iv) The method of acquiring the right-of-way and
32 determining damages incurred in changing the location of
33 or vacating the road, State highway or interstate highway
34 shall be ascertained and paid for in accordance with 26
35 Pa.C.S.
36 (8) Petition the court of common pleas of the county in
37 which any public road or part thereof is located and affected
38 by the location of the turnpikes, for the vacation,
39 relocation or supply of the same or any part thereof with the
40 same force and effect as is now given by existing laws to the
41 inhabitants of any township or the county, and the
42 proceedings upon petition, whether for the appointment of
43 viewers or otherwise, shall be the same as provided by
44 existing law for similar proceedings upon the petitions.
45 (9) Have all of the powers and perform all the duties
46 prescribed by the act of May 21, 1937 (P.L.774, No.211),
47 referred to as the Pennsylvania Turnpike Commission Act.
48 (b) Maintenance to be paid out of tolls.--
49 (1) The turnpike extensions and improvements and the
50 conversion of toll-free roads to toll roads when completed
51 and open to traffic shall be maintained and repaired by and
52 under the control of the commission.
53 (2) All charges and costs for the maintenance and
54 repairs actually expended by the commission shall be paid out
55 of tolls.
56 (3) The turnpike, the turnpike extensions and
57 improvements and the toll-free roads converted to toll roads
58 shall also be policed and operated by a force of police, toll
59 takers and other operating employees as the commission may in
HB1590A02073 - 28 -
1 its discretion employ.
2 § 8108. Expenses and bonding of commission members.
3 (a) Payment of expenses.--All compensation and salaries and
4 all expenses incurred in carrying out the provisions of this
5 chapter shall be paid solely from funds provided under the
6 authority of this chapter, and no liability or obligation shall
7 be incurred under this chapter beyond the extent to which money
8 shall have been provided under the authority of this chapter.
9 (b) No additional bond required.--The issuance of any
10 turnpike revenue bonds, notes or other obligations under the
11 provisions of this chapter shall not cause any member of the
12 commission to be required to execute a bond that a member of the
13 commission is not otherwise required to execute.
14 § 8109. Acquisition of property rights by commission.
15 (a) Condemnation.--The commission may condemn, pursuant to
16 26 Pa.C.S. (relating to eminent domain), any lands, interests in
17 lands, property rights, rights-of-way, franchises, easements and
18 other property deemed necessary or convenient for the
19 construction and efficient operation of the turnpikes and the
20 toll road conversions or necessary in the restoration or
21 relocation of public or private property damaged or destroyed.
22 (b) Purchase.--
23 (1) The commission may acquire by purchase, whenever it
24 shall deem the purchase expedient, or otherwise accept if
25 dedicated to it, any lands, interests in lands, property
26 rights, rights-of-way, franchises, easements and other
27 property deemed necessary or convenient for the construction
28 and efficient operation of the turnpikes and toll road
29 conversions or necessary in the restoration of public or
30 private property damaged or destroyed, whether the property
31 has been previously condemned or otherwise, upon terms and at
32 a price as may be considered by the commission to be
33 reasonable and can be agreed upon between the commission and
34 the owner thereof and to take title thereto in the name of
35 the commission.
36 (2) The net proceeds of the purchase price payable to a
37 municipality or the department for any real property or
38 interest therein obtained by the commission pursuant to this
39 chapter, less the cost of retiring any bonded indebtedness on
40 the property or interest, shall be used exclusively, in the
41 case of a municipality, for road-related and bridge-related
42 expenses and, in the case of the department, for highway and
43 bridge construction, reconstruction and maintenance in the
44 same engineering and maintenance district in which the
45 property is located.
46 § 8110. Procedural requirements of acquisition.
47 (a) Title.--Title to any property condemned by the
48 commission shall be taken in the name of the commission.
49 (b) Entry.--
50 (1) In addition to any others powers set forth in this
51 chapter, the commission and its authorized agents and
52 employees may enter upon any lands, waters and premises in
53 this Commonwealth for the purpose of making surveys,
54 soundings, drillings and examinations, as it may deem
55 necessary or convenient for the purpose of this chapter.
56 (2) The entry shall not be deemed a trespass, nor shall
57 an entry for the purposes be deemed an entry under any
58 condemnation proceedings which may be then pending.
59 (3) The commission shall make reimbursement for any
HB1590A02073 - 29 -
1 actual damages resulting to the lands, waters and premises as
2 a result of the activities.
3 (c) Restoration of property.--Any public or private property
4 damaged or destroyed in carrying out the powers granted by this
5 chapter shall be restored or repaired and placed in its original
6 condition as nearly as practicable or adequate compensation made
7 for the property out of funds provided under the authority of
8 this chapter.
9 (d) Powers of public bodies.--Notwithstanding any other
10 provision of law to the contrary, a political subdivision and a
11 public agency and commission of the Commonwealth may lease,
12 lend, dedicate, grant, convey or otherwise transfer to the
13 commission, upon its request, upon terms and conditions as the
14 proper authorities of the political subdivisions or public
15 agencies and commissions of the Commonwealth may deem reasonable
16 and fair and without the necessity for any advertisement, order
17 of court or other action or formality, other than the regular
18 and formal action of the authorities concerned, any real
19 property which may be necessary or convenient to the
20 effectuation of the authorized purposes of the commission,
21 including public roads and other real property already devoted
22 to public use.
23 § 8111. Entry and possession of property condemned.
24 Whenever the commission has condemned any lands, rights,
25 rights-of-way, easements and franchises, or interests therein,
26 as provided in this chapter, the commission may proceed to
27 obtain possession in the manner provided by 26 Pa.C.S. (relating
28 to the eminent domain).
29 § 8112. Issuance of turnpike revenue bonds or other
30 obligations.
31 (a) Authorization.--
32 (1) A bond must be authorized by resolution of the
33 commission. The resolution may specify all of the following:
34 (i) Series.
35 (ii) Date of maturity not exceeding 40 years from
36 date of issue.
37 (iii) Interest.
38 (iv) Denomination.
39 (v) Form, either coupon or fully registered without
40 coupons.
41 (vi) Registration, exchangeability and
42 interchangeability privileges.
43 (vii) Medium of payment and place of payment.
44 (viii) Terms of redemption not exceeding 105% of the
45 principal amount of the bond.
46 (ix) Priorities in the revenues or receipts of the
47 commission.
48 (2) A bond must be signed by or shall bear the facsimile
49 signature of such officers as the commission determines.
50 Coupon bonds must have attached interest coupons bearing the
51 facsimile signature of the treasurer of the commission as
52 prescribed in the authorizing resolution. A bond may be
53 issued and delivered notwithstanding that one or more of the
54 signing officers or the treasurer has ceased to be an officer
55 when the bond is actually delivered. A bond must be
56 authenticated by an authenticating agent, a fiscal agent or a
57 trustee, if required by the authorizing resolution.
58 (3) A bond may be sold at public or private sale for a
59 price determined by the commission.
HB1590A02073 - 30 -
1 (4) Pending the preparation of a definitive bond,
2 interim receipts or temporary bonds with or without coupons
3 may be issued to the purchaser and may contain terms and
4 conditions as the commission determines.
5 (b) Provisions.--A resolution authorizing a bond may contain
6 provisions which shall be part of the contract with the
7 bondholder as to the following:
8 (1) Pledging the full faith and credit of the commission
9 but not of the Commonwealth or any political subdivision for
10 the bond or restricting the obligation of the commission to
11 all or any of the revenue of the commission from all or any
12 projects or properties.
13 (2) The construction, financing, improvement, operation,
14 extension, enlargement, maintenance and repair for the
15 payment of the costs of the turnpikes and the toll road
16 conversions, including the reconstruction of the converted
17 roads as provided for in this chapter and the repayment to
18 the Federal Treasury of any funds so required to be repaid
19 pursuant to any special legislation passed by the Congress of
20 the United States authorizing the conversion of toll-free
21 roads to toll roads, the financing for insurance reserves and
22 the duties of the commission with reference to these matters.
23 (3) Terms and provisions of the bond.
24 (4) Limitations on the purposes to which the proceeds of
25 the bond or other financing may be applied.
26 (5) Rate of tolls and other charges for use of the
27 facilities of or for the services rendered by the commission.
28 (6) The setting aside, regulation and disposition of
29 reserves and sinking funds.
30 (7) Limitations on the issuance of additional bonds.
31 (8) Terms and provisions of any deed of trust or
32 indenture securing the bond or under which any deed of trust
33 or indenture may be issued.
34 (9) Other additional agreements with the holder of the
35 bond.
36 (c) Deeds of trust.--The commission may enter into any deed
37 of trust, indenture or other agreement with any bank or trust
38 company or other person in the United States having power to
39 enter into such an arrangement, including any Federal agency, as
40 security for a bond and may assign and pledge all or any of the
41 revenues or receipts of the commission under such deed,
42 indenture or agreement. The deed of trust, indenture or other
43 agreement may contain provisions as may be customary in such
44 instruments or as the commission may authorize, including
45 provisions as to the following:
46 (1) Construction, financing, improvement, operation,
47 maintenance and repair for the payment of the costs of the
48 turnpikes and the toll road conversions, including the
49 reconstruction of the converted roads as provided for in this
50 chapter and the repayment to the Federal Treasury of any
51 funds so required to be repaid pursuant to any special
52 legislation passed by the Congress of the United States
53 authorizing the conversion of toll-free roads to toll roads,
54 financing for insurance reserves and the duties of the
55 commission with reference to these matters.
56 (2) Application of funds and the safeguarding of funds
57 on hand or on deposit.
58 (3) Rights and remedies of trustees and bondholders,
59 including restrictions upon the individual right of action of
HB1590A02073 - 31 -
1 a bondholder.
2 (4) Terms and provisions of the bond or the resolution
3 authorizing the issuance of the bond.
4 (d) Negotiability.--A bond shall have all the qualities of
5 negotiable instruments under 13 Pa.C.S. Div. 3 (relating to
6 negotiable instruments).
7 § 8113. Obligation proceeds restricted and lien created.
8 All money received from any bonds, notes or other obligations
9 issued under this chapter shall be applied solely to the payment
10 of the cost of the turnpike, the turnpike extensions and
11 improvements and the toll road conversions, including the
12 reconstruction of the converted roads as provided for in this
13 chapter and the repayment to the Federal Treasury of any funds
14 so required to be repaid pursuant to any special legislation
15 passed by the Congress of the United States authorizing the
16 conversion of toll-free roads to toll roads or to the
17 appurtenant fund. There is created and granted a lien upon the
18 money, until so applied, in favor of holders of the bonds, notes
19 or other obligations or the trustee provided for in this chapter
20 in respect of the bonds, notes or other obligations.
21 § 8114. Trust indenture authorized.
22 (a) Security for bonds.--In the discretion of the
23 commission, the bonds, notes or other obligations may be secured
24 by a trust indenture by and between the commission and a
25 corporate trustee, which may be any trust company or bank having
26 the powers of a trust company, within this Commonwealth. The
27 trust indenture may pledge or assign tolls and revenue to be
28 received but shall not convey or mortgage the Pennsylvania
29 Turnpike System, including the turnpikes and toll road
30 conversions provided for by this chapter.
31 (b) Rights of bondholders.--Either the resolution providing
32 for the issuance of the bonds, notes or other obligations or the
33 trust indenture may contain provisions for protecting and
34 enforcing the rights and remedies of the bondholders or holders
35 of notes or other obligations as may be reasonable and proper
36 and not in violation of law, including covenants setting forth
37 the duties of the commission in relation to the acquisition of
38 properties and the construction, maintenance, operation and
39 repair and insurance of the turnpikes, and the custody,
40 safeguarding and application of all money. It shall be lawful
41 for any bank or trust company incorporated under the laws of
42 this Commonwealth to act as a depository of the proceeds of
43 bonds, notes or other obligations or revenues and to furnish the
44 indemnity bonds or to pledge the securities as may be required
45 by the commission. The trust indenture may set forth the rights
46 and remedies of the bondholders or holders of notes or other
47 obligations and of the trustee and may restrict the individual
48 right of action of bondholders or holders of notes or other
49 obligations as is customary in trust indentures securing bonds,
50 debentures of corporations, notes or other obligations. In
51 addition to the foregoing, the trust indenture may contain other
52 provisions as the commission may deem reasonable and proper for
53 the security of bondholders or holders of notes or other
54 obligations. All expenses incurred in carrying out the trust
55 indenture may be treated as part of the cost of maintenance,
56 operation and repair of the turnpikes and toll road conversions
57 provided for by this chapter.
58 § 8115. Commission and obligations tax exempt.
59 The accomplishment by the commission of the authorized
HB1590A02073 - 32 -
1 purposes stated in this chapter being for the benefit of the
2 people of this Commonwealth and for the improvement of their
3 commerce and prosperity, in which accomplishment the commission
4 will be performing essential governmental functions, the
5 commission shall not be required to pay any taxes or assessments
6 on any property acquired or used by it for the purposes provided
7 in this chapter, and the bonds, notes or other obligations
8 issued by the commission, their transfer and the income
9 therefrom, including any profits made on the sale thereof, shall
10 at all times be free from taxation within this Commonwealth.
11 § 8116. Collection and disposition of tolls and other revenue.
12 (a) Establishment and changes in toll amounts.--Subject to
13 the terms of any trust indenture entered into by the commission,
14 any resolution authorizing the issuance of any bonds, notes or
15 other obligations of the commission, the commission is
16 authorized: to fix and to revise tolls for the use of the
17 Pennsylvania Turnpike System and the different parts or sections
18 of the system, including the turnpike, the turnpike extensions
19 and improvements and the toll road conversions authorized by
20 this chapter: to charge and collect the tolls; to contract with
21 any person, partnership, association or corporation desiring the
22 use of any part thereof, including the right-of-way adjoining
23 the paved portion, for placing thereon telephone, telegraph,
24 electric light or power lines, gas stations, garages, stores,
25 hotels, restaurants and advertising signs, or for any other
26 purpose, except for tracks for railroad or railway use; and to
27 fix the terms, conditions, rents and rates of charges for use.
28 Tolls shall be fixed and adjusted as to provide funds at least
29 sufficient with other revenues of the Pennsylvania Turnpike
30 System, if any, to pay:
31 (1) the cost of constructing, maintaining, repairing and
32 operating the Pennsylvania Turnpike System and the different
33 parts and sections of the system; and
34 (2) any bonds, notes or other obligations and the
35 interest thereon of the commission, and all sinking fund
36 requirements of the commission, and other requirements
37 provided for by any resolution authorizing the issuance of
38 the bonds, notes or other obligations by the commission, or
39 by any trust indenture to which the commission is a party, as
40 the same shall become due.
41 (b) Restrictions on toll revenue.--Tolls shall not be
42 subject to supervision or regulation by any other State
43 commission, board, bureau or agency. Subject to the terms of any
44 presently existing trust indenture entered into by the
45 commission and any presently existing resolution authorizing the
46 issuance of any bonds, notes or other obligations of the
47 commission, the tolls and all other revenue derived from the
48 Pennsylvania Turnpike System shall be set aside and pledged as
49 may be provided in any resolutions, trust indentures or any
50 other agreements that the commission may hereafter adopt or
51 hereafter enter into with respect to the issuance of bonds,
52 notes or other obligations of the commission.
53 § 8116.1. Electronic toll collection.
54 (a) Liability of owner.--
55 (1) If an operator of a vehicle fails to pay the
56 prescribed toll at any location where tolls are collected by
57 means of electronic toll collection, the owner of the vehicle
58 shall be liable to the commission for failure of the operator
59 of the vehicle to comply with this section if the violation
HB1590A02073 - 33 -
1 is evidenced by information obtained from a violation
2 enforcement system.
3 (2) If a violation of this section is committed, the
4 registration plate number of the vehicle as recorded by a
5 violation enforcement system shall establish an inference
6 that the owner of the vehicle was then operating the vehicle.
7 The inference shall be overcome if the owner does all of the
8 following:
9 (i) Testifies that the owner was not operating the
10 vehicle at the time of the violation.
11 (ii) Submits to an examination as to who at the time
12 was operating the vehicle.
13 (iii) Reveals the name and residence address, if
14 known, of the operator of the vehicle.
15 (3) If an action or proceeding is commenced in a county
16 other than that of the residence of the owner, a verified
17 written statement setting forth the facts prescribed under
18 paragraph (2)(i), (ii) and (iii) shall suffice to overcome
19 the inference.
20 (4) If the inference is overcome, the operator of the
21 vehicle may be held liable under this section for failure to
22 pay the prescribed toll in the same manner as if the operator
23 were the owner of the vehicle.
24 (b) Imposition of liability.--Liability under this section
25 shall be imposed upon an owner for a violation of this section
26 or the regulations of the commission occurring within the
27 territorial limits of this Commonwealth. If a violation is
28 committed as evidenced by a violation enforcement system, the
29 following shall apply:
30 (1) The commission or an authorized agent or employee
31 must prepare and mail a notice of violation as follows:
32 (i) The notice of violation must be sent by first
33 class mail to each person alleged to be liable as an
34 owner for a violation of this section.
35 (ii) The notice must be mailed at the address shown
36 on the vehicle registration or at the address of the
37 operator, as applicable. Notice must be mailed no later
38 than 60 days after:
39 (A) the alleged conduct; or
40 (B) the date the inference is overcome under
41 subsection (a)(2).
42 (iii) Personal service is not required.
43 (iv) The notice must contain all of the following:
44 (A) Information advising the person charged of
45 the manner and time in which the liability alleged in
46 the notice may be contested.
47 (B) A warning advising the person charged that
48 failure to contest in the manner and time provided
49 shall be deemed an admission of liability and that a
50 default judgment may be entered on the notice.
51 (1.1) A manual or automatic record of mailing prepared
52 in the ordinary course of business shall be prima facie
53 evidence of the mailing of notice.
54 (2) If an owner of a vehicle or an owner that is a
55 lessor of a vehicle receives a notice of violation under this
56 section for any time period during which the vehicle was
57 reported to a police department as having been stolen, it
58 shall be a defense to the allegation of liability that the
59 vehicle had been reported to the police as having been stolen
HB1590A02073 - 34 -
1 prior to the time the violation occurred and that the vehicle
2 had not been recovered by the time of the violation. For
3 purposes of asserting the defense under this paragraph, it
4 shall be sufficient that a certified copy of the police
5 report on the stolen vehicle be sent by first class mail to
6 the commission within 30 days after receiving the original
7 notice of violation. Failure to send the information within
8 the time limit under this paragraph shall render the owner or
9 lessor liable for the penalty prescribed by this section.
10 (3) An owner that is a lessor of a vehicle as to which a
11 notice of violation was issued under paragraph (1) shall not
12 be liable for a violation if the owner sends to the
13 commission a copy of the rental, lease or other contract
14 document covering the vehicle on the date of the violation,
15 with the name and address of the lessee clearly legible to
16 the commission, within 30 days after receiving the original
17 notice of violation. Failure to send the information within
18 the time limit under this paragraph shall render the lessor
19 liable for the penalty prescribed by this section. If the
20 lessor complies with the provisions of this section, the
21 lessee of the vehicle on the date of the violation shall be
22 deemed to be the owner of the vehicle for purposes of this
23 section and shall be subject to liability for the penalty
24 under this section.
25 (4) A certified report or a facsimile report of an
26 authorized agent or employee of the commission reporting a
27 violation of this section or regulations of the commission
28 based upon the recorded information obtained from a violation
29 enforcement system shall be prima facie evidence of the facts
30 contained in the report and shall be admissible as an
31 official record kept in the ordinary course of business in
32 any proceeding charging a violation of this section or the
33 toll collection regulations of the commission.
34 (5) Notwithstanding any other provision of law,
35 videotapes, photographs, microphotographs, other recorded
36 images, written records, reports or facsimiles prepared
37 pursuant to this section shall be for the exclusive use of
38 the commission, its authorized agents, its employees and law
39 enforcement officials for the purpose of discharging duties
40 under this section and the regulations of the commission. The
41 information shall not be deemed a public record under the act
42 of June 21, 1957 (P.L.390, No.212), referred to as the Right-
43 to-Know Law. The information shall not be discoverable by
44 court order or otherwise; nor shall it be offered in evidence
45 in any action or proceeding which is not directly related to
46 a violation of this section, the regulations of the
47 commission or indemnification for liability imposed pursuant
48 to this section. The restrictions set forth in this
49 paragraph:
50 (i) shall not be deemed to preclude a court of
51 competent jurisdiction from issuing an order directing
52 that the information be provided to law enforcement
53 officials if the information is reasonably described and
54 is requested solely in connection with a criminal law
55 enforcement action;
56 (ii) shall not be deemed to preclude the exchange of
57 the information between any entities with jurisdiction
58 over or which operate an electronic toll collection
59 system in this Commonwealth or any other jurisdiction;
HB1590A02073 - 35 -
1 and
2 (iii) shall not be deemed to prohibit the use of
3 information exclusively for the purpose of billing
4 electronic toll collection account holders, deducting
5 toll charges from the account of an account holder,
6 enforcing toll collection laws and related regulations or
7 enforcing the provisions of an account holder agreement.
8 (6) An imposition of liability under this section must
9 be based upon a preponderance of evidence.
10 (7) An imposition of liability pursuant to this section
11 shall not be deemed a conviction of an owner and shall not be
12 made part of the motor vehicle operating record of the person
13 upon whom the liability is imposed, nor shall it be
14 considered in the provision of motor vehicle insurance
15 coverage.
16 (8) An owner that admits, is found liable or fails to
17 respond to the notice of violation for a violation of this
18 section shall be civilly liable to the commission for all of
19 the following:
20 (i) Either:
21 (A) the amount of the toll evaded or attempted
22 to be evaded if the amount can be determined; or
23 (B) the maximum toll from the farthest point of
24 entry on the Pennsylvania Turnpike to the actual
25 point of exit if the amount of the toll evaded or
26 attempted to be evaded cannot be determined.
27 (ii) A reasonable administrative fee not to exceed
28 $35 per notification.
29 (9) Nothing in this section shall be construed to limit
30 the liability of the operator of a vehicle for a violation of
31 this section or of the regulations of the commission.
32 (c) Placement of electronic toll collection device.--An
33 electronic toll collection device which is affixed to the front
34 windshield of a vehicle in accordance with the regulations of
35 the commission shall not be deemed to constitute a violation of
36 75 Pa.C.S. § 4524 (relating to windshield obstructions and
37 wipers).
38 (d) Privacy of electronic toll collection account holder
39 information.--
40 (1) Except as set forth paragraph (2), notwithstanding
41 any other provision of law, all of the following apply to
42 information kept by the commission, its authorized agents or
43 its employees which is related to the account of an
44 electronic toll collection system account holder:
45 (i) The information shall be for the exclusive use
46 of the commission, its authorized agents, its employees
47 and law enforcement officials for the purpose of
48 discharging their duties pursuant to this section and the
49 regulations of the commission. This subparagraph includes
50 names, addresses, account numbers, account balances,
51 personal financial information, vehicle movement records
52 and other information compiled from transactions with the
53 account holders.
54 (ii) The information shall not be deemed a public
55 record under the Right-to-Know Law, nor shall it be
56 discoverable by court order or otherwise or be offered in
57 evidence in any action or proceeding which is not
58 directly related to the discharge of duties under this
59 section, the regulations of the commission or a violation
HB1590A02073 - 36 -
1 of an account holder agreement.
2 (2) Paragraph (1) shall not be deemed to do any of the
3 following:
4 (i) Preclude a court of competent jurisdiction from
5 issuing an order directing that the information be
6 provided to law enforcement officials if the information
7 is reasonably described and is requested solely in
8 connection with a criminal law enforcement action.
9 (ii) Preclude the exchange of the information
10 between any entities with jurisdiction over or which
11 operate an electronic toll collection system in this
12 Commonwealth or any other jurisdiction.
13 (iii) Prohibit the use of the information
14 exclusively for the purpose of billing electronic toll
15 collection account holders, deducting toll charges from
16 the account of an account holder, enforcing toll
17 collection laws and related regulations or enforcing the
18 provisions of an account holder agreement.
19 (e) Definition.--As used in this section, the term "owner"
20 means any person, corporation, firm, partnership, agency,
21 association, organization or lessor that, at the time a vehicle
22 is operated in violation of this section or regulations of the
23 commission:
24 (1) is the beneficial or equitable owner of the vehicle;
25 (2) has title to the vehicle; or
26 (3) is the registrant or coregistrant of the vehicle
27 registered with the department or a comparable agency of
28 another jurisdiction or uses the vehicle in its vehicle
29 renting or leasing business. The term includes a person
30 entitled to the use and possession of a vehicle subject to a
31 security interest in another person.
32 § 8117. Refunding bonds.
33 The commission is authorized to provide, by resolution, for
34 the issuance of turnpike revenue refunding bonds for the purpose
35 of refunding issued and outstanding turnpike revenue bonds,
36 notes or other obligations. Applicable provisions of this
37 chapter govern all of the following:
38 (1) Issuance of the turnpike revenue refunding bonds.
39 (2) Maturities and other details of the refunding bonds.
40 (3) Rights of the holders of the bonds.
41 (4) Duties of the Commonwealth and of the commission in
42 respect to the bonds.
43 § 8118. Rights of obligation holders and trustees.
44 (a) Scope.--This section applies to all of the following:
45 (1) A holder of:
46 (i) a bond, note or other obligation issued under
47 this chapter; or
48 (ii) a coupon attached to the bond, note or other
49 obligation.
50 (2) The trustee under an applicable trust indenture.
51 (b) Enforcement.--Subject to subsection (c), a person
52 referred to in subsection (a) may, by an action at law or in
53 equity, do all of the following:
54 (1) Protect and enforce rights granted under this
55 chapter or under the resolution or trust indenture.
56 (2) Enforce and compel performance of all duties
57 required by this chapter or by the resolution or trust
58 indenture to be performed by the commission or an officer of
59 the commission. This paragraph includes fixing, charging and
HB1590A02073 - 37 -
1 collecting of tolls for the use of the turnpikes.
2 (c) Restriction.--Rights under this chapter may be
3 restricted by resolution passed before the issuance of the bond,
4 note or other obligation or by the trust indenture.
5 § 8119. Authority granted to secretary.
6 (a) Agreement with Federal Government.--
7 (1) The secretary is authorized to enter into an
8 agreement with the United States Department of
9 Transportation, the Federal Highway Administration and any
10 other Federal agency to obtain Federal funds for projects for
11 resurfacing, restoring and rehabilitating toll roads in this
12 Commonwealth. The commission is authorized to use Federal
13 funds which may be available for toll roads only upon
14 approval of the secretary and only under the authority
15 granted under this section.
16 (2) (Reserved).
17 (b) Approval by department.--Contracts and agreements
18 relating to the construction of the turnpikes and connecting
19 tunnels and bridges must be approved by the department.
20 § 8120. Construction of chapter.
21 This chapter shall be regarded as supplemental and additional
22 to powers conferred by other statutes and shall not be regarded
23 as in derogation of any powers now existing and shall be
24 liberally construed to effect its purposes.
25 Section 2.4. Section 8901 of Title 75 is amended to read:
26 § 8901. Definitions.
27 The following words and phrases when used in this chapter
28 shall have the meanings given to them in this section unless the
29 context clearly indicates otherwise:
30 "Annual additional rent." That portion of the rent payable
31 to the Department of Transportation under section 8915.3(5)
32 (relating to lease of Interstate 80).
33 "Annual base rent." That portion of the rent payable to the
34 Department of Transportation under section 8915.3(4) (relating
35 to lease of Interstate 80).
36 "Annual surplus rent." That portion of the rent payable to
37 the Department of Transportation under section 8915.3(6)
38 (relating to lease of Interstate 80).
39 "Auditor General's certificate." The certificate issued by
40 the Auditor General within 180 days after the end of each fiscal
41 year of the Pennsylvania Turnpike Commission certifying all of
42 the following:
43 (1) The amount of the general reserve fund surplus for
44 the fiscal year.
45 (2) Interstate 80 savings for the fiscal year.
46 (3) After review of the commission's current ten-year
47 capital plan, that the transfer of the general reserve fund
48 surplus under section 8915.3 (relating to lease of Interstate
49 80) shall not impair the ability of the commission to meet
50 its obligations under the lease agreement or the commission's
51 ten-year capital plan.
52 "Commission." The Pennsylvania Turnpike Commission.
53 "Conversion date." The date the Pennsylvania Turnpike
54 Commission intends to assume control over Interstate 80 as set
55 forth in the conversion notice.
56 "Conversion notice." Written notice to the Secretary of
57 Transportation from the Pennsylvania Turnpike Commission
58 providing notice of its intent to assume control over Interstate
59 80 under section 8915.3(3) (relating to lease of Interstate 80).
HB1590A02073 - 38 -
1 "Conversion period." A period of three years:
2 (1) which begins on the date of execution of the lease
3 agreement; and
4 (2) during which the Pennsylvania Turnpike Commission
5 may give the Department of Transportation conversion notice
6 or notice that the commission has exercised its option to
7 extend the conversion period pursuant to section 8915.3(2)
8 (relating to lease of Interstate 80).
9 "Fiscal year." The fiscal year of the Pennsylvania Turnpike
10 Commission.
11 "General reserve fund surplus." The amount which:
12 (1) is certified by the Auditor General in the Auditor
13 General's certificate as existing in the Pennsylvania
14 Turnpike Commission's general reserve fund on the last day of
15 the fiscal year; and
16 (2) is not required to be retained in the general
17 reserve fund pursuant to any financial documents, financial
18 covenants, insurance policies, liquidity policies or
19 agreements, swap agreements or rating agency requirements in
20 effect at the commission.
21 "Interstate 80 savings." An amount equal to the following:
22 (1) Prior to the conversion date, the amount shall be
23 zero.
24 (2) After the conversion date, the amount certified in
25 the Auditor General's certificate equal to $100,000,000,
26 increased by 4% for each year after the year of execution of
27 the lease agreement.
28 "Lease agreement." A lease agreement between the Department
29 of Transportation and the Pennsylvania Turnpike Commission which
30 shall include provisions setting forth the terms of the
31 conversion of Interstate 80 to a toll road.
32 "Scheduled annual commission contribution." The following
33 amounts:
34 (1) $700,000,000 in fiscal year 2007-2008.
35 (2) $750,000,000 in fiscal year 2008-2009.
36 (3) $800,000,000 in fiscal year 2009-2010.
37 (4) $800,000,000 increased by 2.5% for each fiscal year
38 after fiscal year 2009-2010.
39 Section 2.5. Section 8911 introductory paragraph of Title 75
40 is amended and the section is amended by adding a paragraph to
41 read:
42 § 8911. Improvement and extension authorizations.
43 In order to facilitate vehicular traffic within and across
44 this Commonwealth, the commission is hereby authorized and
45 empowered to construct, reconstruct, widen, expand, extend,
46 operate and maintain turnpike extensions and turnpike
47 improvements at such specific locations and according to such
48 schedule as shall be deemed feasible and approved by the
49 commission, together with connecting roads, storm water
50 management systems, interchanges, slip ramps, tunnels and
51 bridges, subject to the waiver of the Federal toll prohibition
52 provisions where applicable, as follows:
53 * * *
54 (10) Other slip ramps and interchanges as the commission
55 may determine.
56 Section 2.6. Sections 8912 introductory paragraph, 8913,
57 8914 introductory paragraph and 8915 introductory paragraph of
58 Title 75 are amended to read:
59 § 8912. Subsequent extension authorizations.
HB1590A02073 - 39 -
1 The commission is also hereby authorized and empowered to
2 construct, reconstruct, widen, expand, extend, operate and
3 maintain further extensions and improvements of the turnpike at
4 such specific locations and according to such schedules as shall
5 be deemed feasible and which shall be approved by the
6 commission, subject to the waiver of the Federal toll
7 prohibition provisions where applicable, as follows:
8 * * *
9 § 8913. Additional subsequent extension authorizations.
10 Upon substantial completion of the turnpike extensions and
11 improvements set forth in sections 8911 (relating to improvement
12 and extension authorizations) and 8912 (relating to subsequent
13 extension authorizations), the commission is hereby authorized
14 and empowered to construct, reconstruct, widen, expand, extend,
15 operate and maintain further extensions and improvements of the
16 turnpike at such specific locations and according to such
17 schedules as shall be deemed feasible and which shall be
18 approved by the commission, subject to the waiver of the Federal
19 toll prohibition provisions where applicable, as follows:
20 construct from a point at or near Interstate Route 80
21 Interchange 23 at Milesburg southwesterly generally along U.S.
22 Route 220 to a connection with the existing U.S. Route 220
23 Expressway south of Bald Eagle.
24 § 8914. Further subsequent authorizations.
25 Upon completion of the turnpike extensions and improvements
26 set forth in sections 8911 (relating to improvement and
27 extension authorizations), 8912 (relating to subsequent
28 extension authorizations) and 8913 (relating to additional
29 subsequent extension authorizations), the commission is hereby
30 authorized and empowered to construct, reconstruct, widen,
31 expand, extend, operate and maintain further extensions and
32 improvements of the turnpike at such specific locations and
33 according to such schedules as shall be deemed feasible and
34 which shall be approved by the commission, subject to the waiver
35 of the Federal toll prohibition provisions where applicable, as
36 follows:
37 * * *
38 § 8915. Conversion to toll roads.
39 In order to facilitate vehicular traffic within and across
40 this Commonwealth, and [after] to facilitate the completion of
41 the turnpike extensions and improvements authorized in section
42 8911 (relating to improvement and extension authorizations), and
43 subject to prior legislative approval by the General Assembly
44 and the United States Congress, the commission is hereby
45 authorized and empowered to convert to toll roads such portions
46 of Pennsylvania's interstate highway system as may [be required
47 in order to] facilitate the completion of the turnpike
48 extensions and improvements authorized in sections 8912
49 (relating to subsequent extension authorizations), 8913
50 (relating to additional subsequent extension authorizations) and
51 8914 (relating to further subsequent authorizations) and to
52 operate and maintain such converted interstates as toll roads
53 upon the approval by the Congress of the United States of
54 America and the General Assembly of this Commonwealth of
55 legislation expressly permitting the conversion of such
56 interstates to toll roads. Such conversions shall take place at
57 a time and manner set forth in the plan for the conversion
58 prepared by the commission with the cooperation of the
59 department. The provisions authorizing the commission to
HB1590A02073 - 40 -
1 construct, operate and maintain the turnpike routes in sections
2 8911, 8912 and 8913 shall be subject to:
3 * * *
4 Section 2.7. Title 75 is amended by adding sections to read:
5 § 8915.1. Conversion of Interstate 80.
6 In order to facilitate vehicular traffic across this
7 Commonwealth, the commission is authorized and empowered to do
8 all of the following:
9 (1) Construct, reconstruct, widen, expand, extend,
10 operate, maintain and maintain and operate Interstate 80 from
11 a point at or near the Ohio border to a point at or near the
12 New Jersey border, together with connecting roads,
13 interchanges, slip ramps, tunnels and bridges.
14 (2) Issue turnpike revenue bonds, notes or other
15 obligations, payable solely from revenues of the commission,
16 including tolls, or from funds as may be available to the
17 commission for that purpose, to pay the cost of construction,
18 reconstructing, widening, expanding or extending or any other
19 costs of the Pennsylvania Turnpike.
20 (3) Convert to a toll road Interstate 80 and to operate
21 and maintain the converted interstate as a toll road.
22 § 8915.2. Application to United States Department of
23 Transportation.
24 (a) Application.--The commission, in consultation with the
25 department and at its own expense, is authorized to prepare and
26 submit an application to the United States Department of
27 Transportation in accordance with 23 U.S.C. § 129 (relating to
28 toll roads, bridges, tunnels, and ferries) for the conversion of
29 Interstate 80 to a toll road under the Interstate Reconstruction
30 and Rehabilitation Pilot Program or in accordance with any other
31 applicable Federal program or provision of law. The secretary
32 shall ensure that all information required for the application
33 is made available to the commission as soon as practicable after
34 the effective date of this section. If the application is
35 submitted pursuant to the Interstate Reconstruction and
36 Rehabilitation Pilot Program, it shall contain all of the
37 following:
38 (1) A consulting civil engineer's report assessing the
39 current physical conditions of the roadbed, pavement, bridges
40 and interchanges and projecting the costs to upgrade
41 Interstate 80, the costs for additional improvements and
42 implementation of the tolling facilities and existing funds
43 available for Interstate 80, absent tolling and concluding
44 that the facility would not be maintained or improved to meet
45 current or future needs from the Commonwealth's
46 apportionments and allocations and from revenues for highways
47 from any other source without toll revenues.
48 (2) A traffic and revenue report completed by a third-
49 party consultant forecasting future traffic and revenue over
50 a minimum of 20 years.
51 (3) An environmental scoping analysis assessing the
52 fiscal impact, any air and water quality issues and the
53 involvement of local metropolitan planning organizations.
54 (4) A construction and operational plan for the
55 implementation of the Toll Pilot Program for Interstate 80
56 which:
57 (i) assumes completion no later than five years
58 after financing;
59 (ii) includes a plan for implementing the imposition
HB1590A02073 - 41 -
1 of tolls on use of Interstate 80, a schedule and finance
2 plan for the reconstruction and rehabilitation of
3 Interstate 80 using toll revenues and a description of
4 the public transportation agency that will be responsible
5 for implementation and administration of the toll pilot
6 program.
7 (5) A financial analysis demonstrating that tolling
8 Interstate 80 will produce sufficient revenue to pay debt
9 service on any bonds and loans incurred with respect to the
10 Toll Pilot Program.
11 (b) Open system.--A toll system shall consist of what is
12 commonly referred to as an open system.
13 § 8915.3. Lease of Interstate 80.
14 The department and the commission shall enter into a lease
15 agreement relating to Interstate 80. The lease agreement shall
16 include provisions setting forth the terms and conditions of the
17 conversion of Interstate 80 to a toll road. The lease agreement,
18 at a minimum, shall include the following:
19 (1) A provision that the term of the lease agreement
20 shall be 50 years, unless extended upon mutual agreement of
21 the parties to the lease agreement.
22 (2) A provision establishing a conversion period and
23 authorizing extension of the conversion period at the sole
24 option of the commission for three one-year extension periods
25 after consultation with the secretary. The commission shall
26 notify the secretary of its intent to extend the conversion
27 period not less than 90 days before the scheduled expiration
28 of the conversion period. During the conversion period, all
29 legal, financial and operational responsibility for
30 Interstate 80 shall remain with the department. All
31 operations and programmed rehabilitation shall be maintained
32 at levels no less favorable than those set forth in the
33 department's 12-year plan at the time of the execution of the
34 lease, with modifications as are approved in writing by the
35 chairman of the commission.
36 (3) A provision permitting the commission to exercise
37 its option to convert Interstate 80 to a toll road prior to
38 the expiration of the conversion period by providing the
39 conversion notice to the secretary. Beginning on the
40 conversion date, all legal, financial and operational
41 responsibility for Interstate 80, as well as all toll
42 revenues collected with respect to its use, shall be
43 transferred from the department to the commission. The
44 commission shall contract with the department for any portion
45 of the maintenance of Interstate 80 at cost levels no less
46 favorable than those of the department on the conversion
47 date.
48 (4) A provision requiring the commission to pay annual
49 base rent to the department during the term of the lease
50 agreement in the following manner and equal to the following
51 amounts:
52 (i) Annual debt service on outstanding bonds issued
53 under section 9511.2 (relating to special revenue bonds
54 payable solely from pledged revenues of Motor License
55 Fund) payable as required pursuant to bonds.
56 (ii) $200,000,000 payable annually in four equal
57 installments each due the first business day of each
58 July, October, January and April.
59 (5) A provision requiring the commission to pay annual
HB1590A02073 - 42 -
1 additional rent to the department as follows:
2 (i) During the conversion period and after the
3 conversion of Interstate 80 to a toll road, the annual
4 additional rent shall be equal to the scheduled annual
5 commission contribution, minus any amounts paid under
6 paragraph (4) less the proceeds of bonds allocable to the
7 fiscal year in question issued under section 9511.2 and
8 any Interstate 80 savings for that fiscal year as set
9 forth in the Auditor General's certificate.
10 (ii) If conversion notice is not received by the
11 secretary prior to the expiration of the conversion
12 period, the annual additional rent shall be equal to
13 $250,000,000.
14 The annual additional rent provided under this paragraph is
15 deemed to be equal to the fair market value of Interstate 80
16 and shall be payable in four equal installments due the first
17 business day of each July, October, January and April of each
18 year during the term of the lease agreement.
19 (6) A provision requiring the commission to pay,
20 commencing on the conversion date, annual surplus rent to the
21 department equal to the general reserve fund surplus payable
22 for each fiscal year from the conversion date until the end
23 of the term of the lease agreement. The surplus rent shall be
24 payable by the commission within 30 days of receipt by the
25 commission of the Auditor General's certificate. If the
26 conversion period expires before the conversion date, no
27 annual surplus rent shall be payable.
28 (7) A provision stating that the obligation of the
29 commission to pay the annual base rent, the annual additional
30 rent and annual surplus rent shall be a subordinate
31 obligation of the commission payable from amounts in the
32 general reserve fund of the commission only as permitted by
33 any financing documents, financial covenants, liquidity
34 policies or agreements, swap agreements or rating agency
35 requirements in effect at the commission.
36 (8) A provision authorizing the department to receive
37 the annual base rent, annual additional rent and annual
38 surplus rent, and to deposit amounts so received as follows,
39 to the degree permitted by applicable Federal laws and
40 regulations:
41 (i) proceeds of bonds issued under section 9511.2
42 shall be spent consistent with sections 9511.4(h)
43 (relating to special revenue bonds and preliminary or
44 interim financing) and 9511.5 (relating to application of
45 proceeds of obligations, lien of holders of obligations,
46 design-build requirement and projects approved by the
47 General Assembly);
48 (ii) be deposited in the Public Transportation Trust
49 Fund as follows:
50 (A) $250,000,000 for fiscal year 2007-2008;
51 (B) $300,000,000 for fiscal year 2008-2009;
52 (C) $350,000,000 for fiscal year 2009-2010; and
53 (D) $400,000,000 for fiscal year 2010-2011 and
54 increased by 2.5% for each fiscal year thereafter;
55 and
56 (iii) any balance received from the department shall
57 be deposited in the Motor License Fund. For any year in
58 which there are no bond proceeds under this paragraph,
59 $5,000,000 of the money deposited shall be for county
HB1590A02073 - 43 -
1 roads and bridges and $30,000,000 of the money deposited
2 shall be for municipal roads and bridges to be allocated
3 under the act of June 1, 1956 (1955 P.L.1944, No.655),
4 referred to the Liquid Fuels Tax Municipal Allocation
5 Law.
6 § 8916. Other interstate highways.
7 In order to facilitate vehicular traffic across this
8 Commonwealth and pursuant to the authority granted under this
9 chapter, the commission is hereby authorized and empowered to:
10 (1) at its own expense and in consultation with the
11 department, prepare a consulting civil engineer report and
12 financial analysis with respect to the feasibility of
13 converting Interstate 95 to a toll road and operating and
14 maintaining the converted interstate as a toll road, upon
15 approval of the General Assembly and the United States
16 Department of Transportation; and
17 (2) at its own expense, and in consultation with the
18 department, prepare and submit an application to the United
19 States Department of Transportation for the conversion of
20 Interstate 95 to a toll road pursuant to any Federal program
21 for which it may be eligible.
22 Amend Bill, page 69, line 20, by striking out all of said
23 line and inserting
24 Section 4. Title 75 is amended by adding a section to read:
25 § 9501. Definitions.
26 The following words and terms when used in this chapter shall
27 have the meanings given to them in this section, unless the
28 context clearly indicates otherwise:
29 "Bond related expenses." The term shall include all of the
30 following:
31 (1) Printing, publication or advertising expenses with
32 respect to the sale and issuance of bonds.
33 (2) Fees, expenses and costs of registrars.
34 (3) Fees, expenses and costs of attorneys, accountants,
35 feasibility consultants, computer programmers or other
36 experts employed to aid in the sale and issuance of the
37 bonds.
38 (4) Other costs, fees and expenses incurred or
39 reasonably related to the issuance and sale of the bonds.
40 "Bond-related obligation." An agreement or contractual
41 relationship between the Pennsylvania Turnpike Commission and a
42 bank, trust company, insurance company, swap counterparty,
43 surety bonding company, pension fund or other financial
44 institution providing increased credit on or security for the
45 bonds or liquidity for secondary market transactions.
46 "Commission." The Pennsylvania Turnpike Commission or any
47 successor organization.
48 "Cost of the department."
49 (1) Any of the following, which shall be reimbursed or
50 paid out of the proceeds of the special revenue bonds, notes
51 or other obligations authorized under this chapter:
52 (i) The cost of constructing, reconstructing,
53 widening, expanding or extending the State highway and
54 rural State highway system and all connecting roads,
55 tunnels and bridges.
56 (ii) The cost of all lands, property rights, rights-
HB1590A02073 - 44 -
1 of-way, easements and franchises acquired, which are
2 deemed necessary or convenient for the construction,
3 reconstruction, widening, expanding or extending under
4 subparagraph (i).
5 (iii) The cost of all machinery and equipment,
6 financing charges, interest prior to and during
7 construction and for one year after completion of
8 construction.
9 (iv) The cost of traffic estimates and of
10 engineering and legal expenses, plans, specifications,
11 surveys, estimates of cost and of revenues, other
12 expenses necessary or incident to determining the
13 feasibility or practicability of the enterprise,
14 administrative and legal expenses and other expenses as
15 may be necessary or incident to the financing authorized
16 under this chapter, the construction, reconstruction,
17 widening, expanding or extending of the State highway and
18 the rural State highway system and connecting roads,
19 tunnels and bridges, the placing of the same in operation
20 and the condemnation of property necessary for
21 construction and operation.
22 (v) Any obligation or expense contracted for by the
23 Department of Transportation or with the United States or
24 any agency of the United States, for traffic surveys,
25 preparation of plans and specifications, supervision of
26 construction, and other engineering, administrative and
27 legal services and expenses in connection with the
28 construction, reconstruction, widening, expanding or
29 extending of the State highway and the rural State
30 highway system or any of the connecting roads, tunnels
31 and bridges.
32 (2) Payment of any notes or other obligations if the
33 notes or other obligations were issued for the payment of a
34 cost.
35 "Design build arrangement." A procurement or project
36 delivery arrangement whereby a single entity, which may be a
37 single contractor or a consortium comprised of multiple
38 contractors, engineers and other subconsultants, is responsible
39 for both the design and construction of a transportation project
40 with a guaranteed completion date and guaranteed maximum price.
41 "Owner." The term shall include all individuals,
42 copartnerships, associations or corporations having any title or
43 interest in any property rights, easements or franchises
44 authorized to be acquired by this chapter.
45 "Pledged revenues." Revenues of the Motor License Fund
46 pledged to the Pennsylvania Turnpike Commission under sections
47 9010 (relating to disposition and use of tax), 9511(i) (relating
48 to allocation of proceeds) and 9511.11 (relating to Motor
49 License Fund proceeds) and amounts payable by the commission
50 under section 8915.3(4)(i) (relating to lease of Interstate 80).
51 "Rural State Highway System." All roads and highways taken
52 over by the Commonwealth as State highways under the provisions
53 of the act of June 22, 1931 (P.L.594, No.203), referred to as
54 the Township State Highway Law and all other roads and highways
55 specifically designated by the Secretary of Transportation as
56 Rural State Highways.
57 "State highway." All roads and highways taken over by the
58 Commonwealth as State highways under the provisions of any
59 statute. Unless clearly intended, the term shall not include any
HB1590A02073 - 45 -
1 street in any city, borough or incorporated town, even though
2 the same may have been taken over as a State highway.
3 Section 5. Title 75 is amended by adding sections to read:
4 § 9511.2. Special revenue bonds payable solely from pledged
5 revenues of Motor License Fund.
6 (a) Payment source.--A special revenue bond, note or other
7 obligation issued under this chapter:
8 (1) shall not be deemed to be a debt or liability of the
9 Commonwealth;
10 (2) shall not create or constitute any indebtedness,
11 liability or obligation of the Commonwealth; and
12 (3) shall be payable solely from revenues of the Motor
13 License Fund pledged to the commission for that purpose in
14 combination with amounts transferred under section
15 8915.3(4)(i) (relating to lease of Interstate 80).
16 (b) Statement.--A special revenue bond, note or other
17 obligation issued under this chapter must contain a statement on
18 its face that:
19 (1) the Commonwealth is not obligated to pay the bond,
20 note or obligation or the interest on it except from revenues
21 of the Motor License Fund pledged for that purpose in
22 combination with amounts transferred under section
23 8915.3(4)(i); and
24 (2) neither the faith and credit nor the taxing power of
25 the Commonwealth is pledged to the payment of the principal
26 or interest of the bond, note or obligation.
27 (c) Taxation.--The issuance of a special revenue bond, note
28 or other obligation under this chapter shall not directly,
29 indirectly or contingently obligate the Commonwealth to levy a
30 tax or to make an appropriation for payment.
31 § 9511.3. Expenses.
32 (a) Reimbursement.--The commission shall be reimbursed for
33 the necessary expenses incurred in the performance of the duties
34 performed under the provisions of this chapter.
35 (b) Source.--All expenses incurred in carrying out the
36 provisions of this chapter shall be paid solely from funds
37 provided under the authority of this chapter, and sufficient
38 funds shall be provided under the authority of this chapter to
39 meet any liability or obligation incurred in carrying out the
40 provisions of this chapter.
41 § 9511.4. Special revenue bonds and preliminary or interim
42 financing.
43 (a) Authorization.--The commission is authorized to provide,
44 by resolution, for the issuance of special revenue bonds of the
45 commission up to an amount not exceeding $4,000,000,000 for the
46 purpose of paying the cost of the department and bond-related
47 expenses. The resolution must recite an estimate of the cost of
48 the department. No more than $600,000,000 of special revenue
49 bonds may be issued in any calendar year. No bond may be issued
50 under this section unless the lease agreement authorized under
51 section 8915.3 (relating to lease of Interstate 80) is in effect
52 as of the date of issuance. Special revenue refunding bonds as
53 set forth in section 9511.9 (relating to special revenue
54 refunding bonds) shall not be deemed to count against the total
55 or annual maximum issuance volume. The principal and interest of
56 the bond shall be payable solely from revenues of the Motor
57 License Fund pledged for that purpose to the commission in
58 combination with the amounts transferred under section
59 8915.3(4)(i).
HB1590A02073 - 46 -
1 (b) Form.--
2 (1) A bond may be issued in registered form.
3 (2) A bond:
4 (i) must be dated;
5 (ii) must bear interest at a rate not exceeding the
6 rate permitted under applicable law;
7 (iii) must be payable semiannually;
8 (iv) must mature, as determined by the commission,
9 not exceeding 40 years from the date of the bond; and
10 (v) may be made redeemable before maturity, at the
11 option of the commission, at a price and under terms and
12 conditions fixed by the commission prior to the issuance
13 of the bonds.
14 (3) The amount of premium on a bond shall not cause the
15 yield to be more than permitted by applicable law from the
16 date of the bond to the date of redemption.
17 (c) Issuance.--
18 (1) The bond may be issued in registered form. The
19 commission may sell a bond in registered form at public or
20 private sale and for a price it determines to be in the best
21 interest of the Commonwealth, but no sale shall be made at a
22 price so low as to require the payment of interest on the
23 money received for the bond at more than the rate permitted
24 by applicable law, computed with relation to the absolute
25 maturity of the bond in accordance with standard tables of
26 bond values.
27 (2) A bond may be issued at public or private sale in
28 series with varying provisions as to all of the following:
29 (i) Rates of interest, which may be fixed or
30 variable.
31 (ii) Maturity.
32 (iii) Other provisions not inconsistent with this
33 chapter.
34 (d) Revenue share.--All bonds, of whatever series, shall
35 share ratably in the revenues pledged under this chapter as
36 security for the bonds, although one series of bonds may have a
37 lien on pledged revenues senior to the lien of another series of
38 bonds.
39 (e) Payment.--
40 (1) The principal and interest of the bonds may be made
41 payable in any lawful medium.
42 (2) The commission shall:
43 (i) determine the form of bonds; and
44 (ii) fix:
45 (A) the denomination of the bond; and
46 (B) the place of payment of principal and
47 interest of the bond, which may be at any bank or
48 trust company within or without this Commonwealth.
49 (f) Signature.--The bond must bear the facsimile signature
50 of the Governor and of the chairman of the commission. The
51 facsimile of the official seal of the commission shall be
52 affixed to the bond and attested by the secretary and treasurer
53 of the commission. If an officer whose signature or facsimile of
54 a signature appears on a bond ceases to be an officer before the
55 delivery of the bond, the signature or facsimile shall
56 nevertheless be valid and sufficient for all purposes, as if the
57 officer remained in office until delivery.
58 (g) Negotiability.--A special revenue bond issued under this
59 chapter shall have all the qualities and incidents of a
HB1590A02073 - 47 -
1 negotiable instrument under 13 Pa.C.S. Div. 3 (relating to
2 negotiable instruments).
3 (h) Proceeds.--
4 (1) The proceeds of a bond shall be used solely for the
5 following:
6 (i) Payment of the cost of the department.
7 (ii) Bond-related expenses.
8 (iii) $5,000,000 in the aggregate of the proceeds of
9 bonds issued in any fiscal year, other than a refunding
10 issue, shall be used for county roads and bridges and
11 $30,000,000 of the proceeds in the aggregate of the bonds
12 issued in any fiscal year, other than a refunding issue,
13 shall be used for local roads and bridges to be allocated
14 under the act of June 1, 1956 (1955 P.L.1944, No.655),
15 referred to as the Liquid Fuels Tax Municipal Allocation
16 Law.
17 (2) The proceeds of a bond shall be disbursed upon
18 requisition of the secretary under restrictions set forth in
19 the resolution authorizing the issuance of the bond or the
20 trust indenture under section 9511.6 (relating to trust
21 indenture, protection of holders of obligations and
22 depositories).
23 (3) If the proceeds of a bond, by error of calculation
24 or otherwise, shall be less than the cost of the department,
25 additional bonds may be issued to provide the amount of the
26 deficit and, unless otherwise provided in the resolution
27 authorizing the issuance of the bonds or in the trust
28 indenture, shall be deemed to be of the same issue and shall
29 be entitled to payment from the same fund, without preference
30 or priority of the bonds first issued.
31 (i) Temporary bonds.--Prior to the preparation of definitive
32 bonds, the commission may, under similar restrictions as those
33 applicable to the definitive bonds, issue temporary bonds,
34 exchangeable for definitive bonds upon the issuance of
35 definitive bonds.
36 (j) Replacement bonds.--The commission may provide for the
37 replacement of a bond which becomes mutilated or is destroyed or
38 lost. A replacement revenue bond may be issued without any other
39 proceedings or the happening of any other condition than those
40 proceedings and conditions required by this chapter.
41 (k) Status as securities.--
42 (1) A bond is made a security in which any of the
43 following may properly and legally invest funds, including
44 capital, belonging to them or within their control:
45 (i) Commonwealth and municipal officers.
46 (ii) Commonwealth agencies.
47 (iii) Banks, bankers, savings banks, trust
48 companies, saving and loan associations, investment
49 companies and other persons carrying on a banking
50 business.
51 (iv) Insurance companies, insurance associations and
52 other persons carrying on an insurance business.
53 (v) Fiduciaries.
54 (vi) Other persons that are authorized to invest in
55 bonds or other obligations of the Commonwealth.
56 (2) A bond is made a security which may properly and
57 legally be deposited with and received by a Commonwealth or
58 municipal officer or a Commonwealth agency for any purpose
59 for which the deposit of bonds or other obligations of the
HB1590A02073 - 48 -
1 Commonwealth is authorized by law.
2 (l) Borrowing.--The following shall apply:
3 (1) The commission is authorized to do all of the
4 following:
5 (i) Borrow money at an interest rate not exceeding
6 the rate permitted by law.
7 (ii) Provide for preliminary or interim financing,
8 up to but not exceeding the estimated total cost of the
9 department and bond-related expenses and to evidence the
10 borrowing by the issuance of special revenue notes and,
11 in its discretion, to pledge as collateral for the note
12 or other obligation, a special revenue bond issued under
13 the provisions of this chapter. The commission may renew
14 the note or obligation and the payment or retirement of
15 the note or obligation shall be considered to be payment
16 of the cost of the project.
17 (2) A note or obligation issued under this subsection
18 must comply with the following:
19 (i) Be executed by the same persons in the same
20 manner and with the same effect as provided in this
21 section for the execution of a special revenue bond.
22 (ii) Contain a statement on its face that:
23 (A) the Commonwealth is not obligated to pay the
24 note or obligation or interest on it, except from
25 pledged revenues of the Motor License Fund; and
26 (B) neither the faith and credit nor the taxing
27 power of the Commonwealth is pledged to the payment
28 of its principal or interest.
29 (3) The issuance of a special revenue note or other
30 obligation under this chapter shall not directly or
31 indirectly or contingently obligate the Commonwealth to levy
32 a tax or make an appropriation for payment.
33 (4) A note or other obligation issued under this
34 subsection shall have all the qualities and incidents of a
35 negotiable instrument under 13 Pa.C.S. (relating to
36 commercial code).
37 § 9511.5. Application of proceeds of obligations, lien of
38 holders of obligations, design-build requirement and
39 projects approved by General Assembly.
40 (a) Application.--The following shall apply:
41 (1) All money received from any bonds, notes or other
42 obligations issued under this chapter shall be applied solely
43 to the payment of the cost of the department or to the
44 appurtenant fund.
45 (2) Until money received from any bonds, notes or other
46 obligations issued under this chapter is applied under
47 paragraph (1), a lien shall exist upon the money in favor of
48 holders of the bonds, notes or other obligations or a trustee
49 provided for in respect to the bonds, notes or other
50 obligations.
51 (b) Design-build arrangements.--To facilitate the timely
52 completion of projects to be financed by the department with
53 bond proceeds, the department shall be required to utilize
54 design-build arrangements for each project estimated by the
55 department to have a value in excess of $100,000,000. The
56 selection of the party for the design-build arrangement must be
57 conducted in a manner consistent with the procurement and public
58 bidding laws applicable to the department.
59 (c) Capital plan.--All projects financed by the department
HB1590A02073 - 49 -
1 with bond proceeds must be set forth in the department's capital
2 plan current at the time of the financing and budget which
3 capital plan and budget shall be submitted to the General
4 Assembly on or before March 31 of each year commencing March 31,
5 2008.
6 (d) Investment.--Pending the application of proceeds to
7 costs of the department and bond-related expenses, the
8 commission may invest the funds in permitted investments as
9 defined under any trust indenture if the investment is not
10 inconsistent with existing fiduciary obligations of the
11 commission.
12 § 9511.6. Trust indenture, protection of holders of obligations
13 and depositories.
14 (a) Indenture.--In the discretion of the commission, a bond,
15 note or other obligation may be secured by a trust indenture by
16 and between the commission and a corporate trustee, which may be
17 any trust company or bank having the powers of a trust company,
18 within or without this Commonwealth.
19 (b) Pledge or assignment.--A trust indenture under
20 subsection (a) may pledge or assign revenue to be received, but
21 shall not convey or mortgage the turnpike or any part of the
22 turnpike.
23 (c) Rights and remedies.--The resolution providing for the
24 issuance of the bond, note or other obligation of the trust
25 indenture may contain provisions for protecting and enforcing
26 the rights and remedies of the bondholders or holders of notes
27 or other obligations as may be reasonable and proper and not in
28 violation of law, including covenants setting forth the duties
29 of the department in relation to the acquisition of properties,
30 the construction, maintenance, operation, repair and insurance
31 of the State highway and rural State highway system and the
32 custody, safeguarding and application of all money.
33 (d) Depository.--It shall be lawful for any bank or trust
34 company incorporated under the laws of this Commonwealth to act
35 as depository of the proceeds of the bond, note or other
36 obligation or revenue, to furnish indemnity bonds or to pledge
37 securities as may be required by the commission.
38 (e) Indenture.--The trust indenture may set forth the rights
39 and remedies of the bondholders or holders of notes or other
40 obligations and of the trustee and may restrict the individual
41 right of action of bondholders or holders of notes or other
42 obligations as is customary in trust indentures securing bonds,
43 debentures of corporations, notes or other obligations. The
44 trust indenture may contain other provisions as the commission
45 may deem reasonable and proper for the security of bondholders
46 or holders of notes or other obligations.
47 § 9511.7. Exemption from Commonwealth taxation.
48 The effectuation of the purposes of this chapter is for the
49 benefit of the citizens of the Commonwealth and for the
50 improvement of their commerce and prosperity. Since the
51 commission will be performing essential government functions in
52 effectuating these purposes, the commission shall not be
53 required to pay any tax or assessment on any property acquired
54 or used by it for the purposes provided under this chapter. A
55 bond, note or other obligation issued by the commission, its
56 transfer and the income from its issuance and transfer,
57 including any profits made on the sale of the bond, note or
58 other obligation, shall be free from taxation within the
59 Commonwealth.
HB1590A02073 - 50 -
1 § 9511.8. Pledged revenues, contracts for use of turnpike,
2 sinking fund and purchase or redemption of
3 obligations.
4 (a) Authorization.--The commission is authorized to collect
5 the pledged revenues. The pledged revenues shall be fixed and
6 adjusted as to provide funds at least sufficient to pay the
7 bonds, notes or other obligations and the interest on the bonds,
8 notes or other obligations. All sinking fund requirements and
9 other requirements provided by the resolution authorizing the
10 issuance of the bonds, notes or other obligations, or by the
11 trust indenture, shall be fixed and adjusted as the bonds, notes
12 or other obligations become due.
13 (b) Supervision.--The pledged revenues shall not be subject
14 to supervision or regulation by any Commonwealth agency other
15 than the commission.
16 (c) Set aside.--Except for the portion of the pledged
17 revenues required to provide reserves as set forth in the
18 resolution authorizing the issuance of the bonds, notes or other
19 obligations or in the trust indenture, pledged revenues, to the
20 degree amounts transferred under section 8915.3(4)(i)(relating
21 to lease of Interstate 80) are not sufficient, shall be set
22 aside at regular intervals as may be provided in the resolution
23 or trust indenture, in one or more accounts, which are pledged
24 to and charged with the payment of all of the following:
25 (1) The interest upon a bond, note or other obligation,
26 as it shall become due and payable.
27 (2) The principal of a bond, note or other obligation,
28 as it shall become due and payable.
29 (3) The necessary fiscal agency charges for paying
30 principal and interest.
31 (4) A premium upon a bond retired by call or purchase.
32 (d) Sinking fund.--The use and disposition of the sinking
33 fund shall be subject to regulations as may be provided in the
34 resolution authorizing the issuance of bonds, notes or other
35 obligations or in the trust indenture, but, except as may
36 otherwise be provided in the resolution or trust indenture, the
37 sinking fund shall be a fund for the benefit of all bonds, notes
38 or other obligations issued under this chapter, without
39 distinction or priority of one over another.
40 (e) Application of money.--Subject to the provisions of the
41 resolutions authorizing the issuance of bonds, notes or other
42 obligations or of the trust indenture, any money in the sinking
43 fund in excess of an amount equal to one year's interest on all
44 bonds, notes or other obligations then outstanding may be
45 applied to the purchase or redemption of bonds, notes or other
46 obligations. All bonds, notes or other obligations purchased or
47 redeemed under this subsection shall be canceled and shall not
48 again be issued.
49 § 9511.9. Special revenue refunding bonds.
50 The commission is authorized to provide, by resolution, for
51 the issuance of special revenue refunding bonds of the
52 commission for the purpose of refunding any special revenue
53 bonds, notes or other obligations issued under the provisions of
54 this chapter and then outstanding. The issuance of the special
55 revenue refunding bonds, the maturities and other details of the
56 bonds, the rights of the holders of the bonds and the duties of
57 the department and of the commission with respect to the bonds
58 shall be governed by the provisions of this chapter.
59 § 9511.10. Remedies of trustees and of holders of obligations.
HB1590A02073 - 51 -
1 (a) Grant of rights.--A holder of a bond, note or other
2 obligation issued under this chapter and the trustee under the
3 trust indenture may, either at law or in equity, by suit,
4 action, mandamus or other proceeding, do all of the following:
5 (1) Protect and enforce any right granted under this
6 chapter or under the resolution or trust indenture.
7 (2) Enforce and compel performance of all duties
8 required under this chapter or by resolution or trust
9 indenture to be performed by the commission or any officer of
10 its officers, including the collection of the pledged
11 reserves or amounts transferred under section 8915.3(4)(i)
12 (relating to lease of Interstate 80).
13 (b) Exception.--Rights given under this chapter may be
14 restricted by resolution passed before the issuance of the
15 bonds, notes or other obligations, or by the trust indenture.
16 § 9511.11. Motor License Fund proceeds.
17 The balance of the proceeds deposited in the Motor License
18 Fund under section 20 of the act of April 17, 1997 (P.L.6,
19 No.3), entitled, "An act amending Titles 74 (Transportation) and
20 75 (Vehicles) of the Pennsylvania Consolidated Statutes, further
21 providing for annual appropriation and computation of subsidy
22 and for distribution of funding; providing for distribution of
23 supplemental funding; further providing for use of funds
24 distributed; providing for public transportation grants
25 management accountability, for competitive procurement and for
26 the Public Transportation Assistance Fund; further providing for
27 period of registration, for duties of agents, for registration
28 and other fees, for requirements for periodic inspection of
29 vehicles, for limits on number of towed vehicles, for operation
30 of certain combinations on interstate and other highways and for
31 width and length of vehicles; providing for liquid fuels and
32 fuels permits and bond or deposit of securities, for imposition
33 of liquid fuels and fuels tax, for taxpayer, for distributor's
34 report and payment of tax, for determination of tax, penalties
35 and interest, for examination of records and equipment, for
36 retention of records by distributors and dealers, for
37 disposition and use of tax, for discontinuance or transfer of
38 business, for suspension or revocation of permits, for lien of
39 taxes, penalties and interest, for collection of unpaid taxes,
40 for reports from common carriers, for violations and reward for
41 detection of violations, for refunds, for diesel fuel importers
42 and transporters, for prohibiting use of dyed diesel fuel, for
43 disposition of fees, fines and forfeitures, for certified copies
44 of records and for uncollectible checks; further providing for
45 distribution of State highway maintenance funds and for
46 standards and methodology for data collection; providing for
47 dirt and gravel road maintenance; further providing for
48 imposition of tax and additional tax; providing for tax on
49 alternative fuels; further providing for disposition of tax
50 revenue; making an appropriation; and making repeals," is
51 pledged to secure bonds issued by the commission. The proceeds
52 may be pledged to secure bonds to be issued by the commission on
53 behalf of the department for the construction, reconstruction,
54 widening, expansion, extension, maintenance and repair of and
55 safety on bridges and costs and expenses incident to those tasks
56 and fees and expenses of the commission related to the issuance
57 of the bonds, including bond-related expenses. Each month, the
58 State Treasurer shall transfer amounts as are necessary, in
59 combination with amounts transferred under sections
HB1590A02073 - 52 -
1 8915.3(4)(i)(relating to lease of Interstate 80) and 9511
2 (relating to allocation of proceeds) to satisfy the provisions
3 of the bond indenture relating to bonds issued under this
4 section and those amounts are authorized to be appropriated.
5 § 9511.12. Supplement to other laws and liberal construction.
6 This chapter shall be regarded as supplemental and additional
7 to powers conferred by other statutes and shall not be regarded
8 as in derogation of any powers existing on the effective date of
9 this section. The provisions of this chapter, being necessary
10 for the welfare of the Commonwealth and its citizens shall be
11 liberally construed to effect the purposes of this chapter.
12 Section 6. (a) Financial assistance made by the Department
13 of Transportation to an award recipient under 74 Pa.C.S. Ch. 13
14 prior to the effective date of this section may continue to be
15 used by award recipients for operating or capital expenses upon
16 the same terms and conditions as are contained in the notice of
17 grant award or grant agreement executed in connection with the
18 award, if the funds are expended within five years following the
19 effective date of this section.
20 (b) The Department of Transportation may continue to use all
21 funds appropriated or otherwise made available to it for public
22 transportation purposes prior to the effective date of this
23 section in accordance with the laws under which the funds were
24 made available.
25 Section 7. The following shall apply:
26 (1) The General Assembly declares that the repeal under
27 paragraph (2) is necessary to effectuate the addition of 74
28 Pa.C.S. Ch. 81.
29 (2) The act of September 30, 1985 (P.L.240, No.61),
30 known as the Turnpike Organization, Extension and Toll Road
31 Conversion Act is repealed.
32 (3) Section 207.1(c)(2) of the act of April 9, 1929
33 (P.L.177, No.175), known as The Administrative Code of 1929,
34 is repealed insofar as it is inconsistent with the addition
35 of 74 Pa.C.S. § 8105.
36 (4) Sections 2301(a) and (b) of the act of March 4, 1971
37 (P.L.6, No.2), known as the Tax Reform Code of 1971, insofar
38 as they relate to the establishment and existence of the
39 Public Transportation Assistance Fund are repealed.
40 (5) All other acts and parts of acts are repealed
41 insofar as they are inconsistent with this act.
42 Section 8. The addition of 74 Pa.C.S. Ch. 81 is a
43 continuation of the act of September 30, 1985 (P.L.240, No.61),
44 known as the Turnpike Organization, Extension and Toll Road
45 Conversion Act. The following shall apply:
46 (1) Except as otherwise provided under 74 Pa.C.S. Ch.
47 81, all activities initiated under the Turnpike Organization,
48 Extension and Toll Road Conversion Act shall continue and
49 remain in full force and effect and may be completed under 74
50 Pa.C.S. Ch. 81. Orders, regulations, rules and decisions
51 which were made under the Turnpike Organization, Extension
52 and Toll Road Conversion Act and which are in effect on the
53 effective date of section 7(2) of this act shall remain in
54 full force and effect until revoked, vacated or modified
55 under 74 Pa.C.S. Ch. 81. Contracts, obligations and
56 collective bargaining agreements entered into under the
57 Turnpike Organization, Extension and Toll Road Conversion Act
58 are not affected nor impaired by the repeal of the Turnpike
59 Organization, Extension and Toll Road Conversion Act.
HB1590A02073 - 53 -
1 (2) Except as set forth in paragraph (3), any difference
2 in language between 74 Pa.C.S. Ch. 81 and the Turnpike
3 Organization, Extension and Toll Road Conversion Act is
4 intended only to conform to the style of the Pennsylvania
5 Consolidated Statutes and is not intended to change or affect
6 the legislative intent, judicial construction or
7 administration and implementation of the Turnpike
8 Organization, Extension and Toll Road Conversion Act.
9 (3) Paragraph (2) does not apply to the addition of 74
10 Pa.C.S. § 8105.
11 Section 9. This act shall take effect as follows:
12 (1) The following provisions shall take effect
13 immediately:
14 (i) The addition of 74 Pa.C.S. § 8105.
15 (ii) Section 7(3) of this act.
16 (iii) This section.
17 (2) The remainder of this act shall take effect in 60
18 days.
F23L90VDL/HB1590A02073 - 54 -