PRINTER'S NO. 601
No. 553 Session of 1977
INTRODUCED BY IRVIS, DeMEDIO, TADDONIO, MANDERINO, TRELLO,
CAPUTO, VALICENTI, GEISLER, COWELL, ITKIN, BERLIN AND LOGUE,
MARCH 7, 1977
REFERRED TO COMMITTEE ON TRANSPORTATION, MARCH 7, 1977
AN ACT
1 To increase the commerce and prosperity of the people of the
2 Commonwealth, to improve their health and living conditions,
3 and to alleviate the problems created by traffic congestion
4 and the lack of adequate transportation services and
5 facilities, by authorizing the creation of a Joint Regional
6 Transportation Board to function in each region consisting of
7 any county of the second class and all counties not of the
8 second class within the Commonwealth contiguous to such
9 second class county, for the purpose of establishing an
10 integrated transportation system with all pertinent powers
11 including, but not limited to, leasing, acquiring, owning,
12 operating and maintaining a system for, or otherwise
13 providing for, the transportation of persons or things
14 authorizing the borrowing of money and issuance of bonds
15 therefor, conferring the right of eminent domain on said
16 joint board, altering the jurisdiction of the Public Utility
17 Commission, authorizing the acceptance of grants from
18 Federal, State, local governments and other entities or
19 persons, limiting actions against the joint board and
20 exempting it from taxation, authorizing counties and
21 municipalities to enter into compacts for the financing of
22 each joint board and to expend moneys in accordance with such
23 compacts, conferring exclusive jurisdiction upon certain
24 courts with respect to matters relating to such joint board,
25 and empowering each joint board to function outside of the
26 region under certain terms and conditions.
27 TABLE OF CONTENTS
28 Section 1. Short title.
29 Section 2. Legislative finding; declaration of policy.
1 Section 3. Definitions.
2 Section 4. Creation of Joint Regional Transportation Board.
3 Section 5. Members of joint board.
4 Section 6. Selection of members.
5 Section 7. Resignation and removal of members.
6 Section 8. Meetings, quorum, approval of resolutions,
7 election of chairman of the appointed body.
8 Section 9. Meetings, quorum, approval of resolutions,
9 election of chairman of the ex officio body.
10 Section 10. Secretary, treasurer, oath, bond.
11 Section 11. Deposit of funds, checks and drafts; security
12 collateral.
13 Section 12. Signatures of officers ceasing to hold office.
14 Section 13. General manager.
15 Section 14. Legal division, general counsel.
16 Section 15. Other employees.
17 Section 16. Classification of positions and employments;
18 discharge or demotion of officers or employees;
19 hearings; seniority; pensions and retirement.
20 Section 17. General powers and duties of joint board.
21 Section 18. Removal or relocation of utility structures;
22 power of eminent domain.
23 Section 19. Power to buy, lease or sell property.
24 Section 20. Power to contract with public utilities.
25 Section 21. Acquisition of capital stock.
26 Section 22. Use of ways occupied by other passenger
27 utilities.
28 Section 23. Loans, bonds and certificates; trust indentures.
29 Section 24. Acquisition of equipment; agreements and leases.
30 Section 25. Provisions of bonds; trust indentures.
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1 Section 26. Bonds and certificates to be legal investments.
2 Section 27. Responsibilities of the appointed body;
3 transportation planning; review of operations;
4 budget formulation; bond issues and fare levels.
5 Section 28. Investment and reinvestment of funds.
6 Section 29. Responsibilities of the ex officio body.
7 Section 30. Transfers of facilities or things of value to
8 the joint board.
9 Section 31. Financing of operations.
10 Section 32. Financing of capital requirements.
11 Section 33. Contracts, procurement and sale of property;
12 concessions; advertisement; bidding.
13 Section 34. Conflict of interest.
14 Section 35. Fiscal operating year; budget; capital program.
15 Section 36. Financial statement and reports; audit.
16 Section 37. Transfer of records by Public Utility
17 Commission.
18 Section 38. Depreciation and general reserves.
19 Section 39. Special funds; common cash account and auxiliary
20 short term investment portfolio; reserves.
21 Section 40. Limitation of actions against joint board.
22 Section 41. Investigations and subpoenas.
23 Section 42. Exemption from taxation.
24 Section 43. Limitation of powers.
25 Section 44. Repeals.
26 Section 45. Effective date.
27 The General Assembly of the Commonwealth of Pennsylvania
28 hereby enacts as follows:
29 Section 1. Short title.
30 This act shall be known and may be cited as the "Joint
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1 Regional Transportation Board Act."
2 Section 2. Legislative finding; declaration of policy.
3 It is hereby determined and declared as a matter of
4 legislative finding:
5 (1) That fluctuating oil reserves and a virtually
6 unpredictable pricing policy of middle eastern oil suppliers
7 necessitate a shift in emphasis from the Commonwealth's
8 reliance on a transportation system based predominantly upon
9 the private automobile.
10 (2) That there exists in the urban and suburban
11 communities in the southwestern Pennsylvania region, traffic
12 congestion and serious mass transportation problems because
13 of underdeveloped, uncoordinated obsolete mass transportation
14 facilities and too great an acquiescence upon the commingling
15 of mass transit vehicles, pedestrians and the private
16 automobile, resulting in inadequate or overcrowded high cost
17 conditions on our streets and highways and inadequate
18 provision for separation of the several modes of
19 transportation.
20 (3) That there exists in the urban, suburban and rural
21 communities in the southwestern Pennsylvania region many
22 people who have transportation services inadequate to enable
23 them to meet basic health and economic needs often because
24 they have no access to an automobile for physical or economic
25 reasons, or both.
26 (4) That there exists a limited supply of transportation
27 facilities and services in the southwestern Pennsylvania
28 region which offer alternatives to the automobile thus
29 presenting economic and institutional barriers to any change
30 in the situation.
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1 (5) That such conditions or a combination of some or all
2 of them have made and will continue to result in making such
3 communities economic and social liabilities, harmful to the
4 social and economic well-being of the entire area,
5 depreciating values therein, reducing the tax revenues,
6 making the southwestern Pennsylvania region and its
7 constituent communities less desirable areas in which to live
8 and work and thereby depreciating further the general
9 community wide values.
10 (6) That the foregoing conditions are not now
11 effectively dealt with by private enterprise.
12 (7) That the sound replanning and redevelopment of
13 regional mass and rapid transportation facilities in
14 accordance with sound and approved plans for their promotion,
15 development, and growth will promote the public health,
16 safety, convenience and welfare and that the public
17 acquisition of existing mass and rapid transportation
18 facilities in accordance with the said sound plans will
19 promote the public health, safety, convenience and welfare.
20 (8) That the well-being and economic health of the
21 counties and other communities in the southwestern
22 Pennsylvania region require integrated systems of
23 transportation.
24 (9) That the sound promotion, coordination, and planning
25 of transportation facilities and services, including existing
26 and future technologies, systems, and services, in accordance
27 with sound and approved plans, will enhance the public
28 health, safety, convenience and welfare.
29 (10) That the well-being and economic health of the
30 counties and other communities in the southwestern
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1 Pennsylvania region require that transportation facilities
2 and services, complement, supplement, integrate with and
3 otherwise coordinate with mass and rapid transportation
4 facilities.
5 (11) That it is desirable that the supply of all
6 transportation facilities and services in the southwestern
7 Pennsylvania region be coordinated, promoted, improved and
8 supplemented by the creation of a Joint Regional
9 Transportation Board as herein provided.
10 (12) That the establishment of a joint board will
11 promote the public safety, convenience and welfare.
12 (13) That it is intended that the joint board created
13 hereunder may cooperate with all municipalities and other
14 public bodies in whose territories it operates so that the
15 transportation system may best serve the interests of the
16 residents thereof.
17 Therefore, it is hereby declared to be the policy of the
18 Commonwealth of Pennsylvania to promote the safety and welfare
19 of the inhabitants thereof by authorizing the creation of a body
20 corporate and politic for the southwestern Pennsylvania region
21 to be known as the Joint Regional Transportation Board of such
22 region which shall exist and operate for the purposes contained
23 in this act. Such purposes are hereby declared to be public uses
24 for which public money may be spent and property may be acquired
25 by the exercise of the power of eminent domain.
26 Section 3. Definitions.
27 The following words and phrases when used in this act shall
28 have, unless the context clearly indicates otherwise, the
29 meanings given to them in this section:
30 "Federal agency." The United States of America, the
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1 President of the United States and any department or
2 corporation, agency or instrumentality, heretofore or hereafter
3 created, designated or established by the United States of
4 America.
5 "Joint board." Any Joint Regional Transportation Board
6 created pursuant to this act.
7 "Project." Any system, structure or structures, facility or
8 facilities, service or services or undertaking which a joint
9 board is authorized to acquire, construct, improve, lease,
10 maintain, operate, contract for, or otherwise employ or render
11 under the provisions of this act.
12 "Region." All of the territory within any county of the
13 second class and all counties not of the second class within the
14 Commonwealth on the effective date of this act contiguous to
15 such second class county.
16 "Transportation system." All property, real and personal,
17 and powers useful for the transportation of passengers or
18 things, including but not limited to, power plants, substations,
19 terminals, garages, bridges, viaducts, tunnels, subways,
20 elevated lines, monorails, automated guide way facilities,
21 railroad motive power, trains, railroad cars and equipment, belt
22 conveyors, inclines, car barns, street cars, buses, rails,
23 lines, poles, wires, stations, off-street parking facilities,
24 rights-of-way, or any facility or technology now or hereafter
25 existing for the purpose of movement of people or things on,
26 above, or under the ground or in the air, as well as the
27 franchises, rights and licenses therefor.
28 Section 4. Creation of Joint Regional Transportation Board.
29 There is hereby authorized the creation of a separate body
30 corporate and politic in each region to be known as the Joint
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1 Regional Transportation Board (hereinafter referred to as the
2 joint board) extending to and including all of the territory in
3 the region. The joint board for each region shall in no way be
4 deemed to be an instrumentality of any municipality or engage in
5 the performance of a municipal function, but shall exercise the
6 public powers of the Commonwealth as an agency and
7 instrumentality thereof. Each joint board shall exist for the
8 following purposes: to engage in planning, acquiring, holding,
9 constructing, improving, maintaining, operating, leasing, either
10 as lessor or lessee, and otherwise functioning with respect to
11 transportation systems in the region and outside of such area to
12 the extent necessary for the operation of an integrated system
13 and for the provision of all group and party services which can
14 be provided by transportation systems subject to acquisition
15 under this act and to promote and assist in the role of agent,
16 broker, or other arrangement the utilization of all and any
17 transportation facilities and services including existing and
18 future technologies, systems and services. All services rendered
19 by the joint board outside the region shall be pursuant to
20 certificates of public convenience or other appropriate
21 authorization issued to it by the Pennsylvania Public Utility
22 Commission, or other appropriate regulatory agency of any state
23 or Federal Government. A joint board shall transact no business
24 or otherwise become operative until the members of its governing
25 and administrative bodies have been selected and certified.
26 There shall be no more than one joint board in each region.
27 Section 5. Members of joint board.
28 All governing and administrative powers of the joint board as
29 herein granted shall be vested in two bodies, one to be known as
30 the appointed body and the other to be known as the ex officio
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1 body, composed of members to be selected as hereinafter
2 provided. No board member shall be allowed any fees, perquisites
3 or emoluments, reward or compensation for services as a member
4 or officer of the joint board but shall be reimbursed for actual
5 expenses incurred in the performance of his or her duties.
6 Section 6. Selection of members.
7 (a) The ex officio body shall be composed of those members
8 of the House of Representatives of the General Assembly of the
9 Commonwealth of Pennsylvania who are elected from time to time
10 as provided in Article II of the Constitution of Pennsylvania
11 whose districts are located in whole or in part in the region.
12 Such members shall be members of said ex officio body only
13 during their respective terms in office.
14 (b) The appointed body shall be composed of members
15 appointed by the Governor or appointed by the county
16 commissioners in each county located in the region, as the case
17 may be, as hereinafter provided.
18 (c) At any time after the effective date of this act:
19 (1) The Governor shall appoint as members of the
20 appointed body three persons, who may or may not be officials
21 in the government of the Commonwealth and whose respective
22 terms shall be for six years from the date of appointment.
23 (2) (i) The county commissioners in each county of the
24 region shall appoint, subject to conditions stated
25 herein, two persons from each county to serve as members
26 for staggered terms. Of the initial two members appointed
27 in each county, one member shall be appointed to serve
28 for three years and the other shall be appointed to serve
29 for six years. Thereafter, each appointment shall run for
30 a term of six years.
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1 (ii) Appointments made by the county commissioners
2 of each county in the region shall be subject to the
3 following requirements:
4 (A) The commissioners shall give public notice
5 30 days in advance of their intent to make an
6 appointment or fill a vacancy all in accordance with
7 the applicable provisions of the act of July 19, 1974
8 (P.L.486, No.175), entitled "An act requiring public
9 agencies to hold certain meetings and hearings open
10 to the public and providing penalties." This notice
11 shall state in addition that, as a prerequisite to
12 consideration for appointment, the special
13 qualifications of the prospective appointee shall be
14 documented and retained on file in the respective
15 office of the county commissioners. This information
16 shall be available for public scrutiny.
17 (B) After such notice as specified in clause (A)
18 public hearings shall be conducted by the respective
19 county commissioners at which time prospective
20 appointees and the public at large may offer
21 testimony.
22 (C) All appointments shall be certified to the
23 Secretary of the Commonwealth by the several
24 appointing powers. With respect to the ex officio
25 body, the Secretary of the House of Representatives,
26 shall certify whose districts are contained in whole
27 or in part in the region.
28 Section 7. Resignation and removal of members.
29 (a) (1) Members of the appointed body shall hold office
30 until their respective successors have been appointed and
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1 qualified.
2 (2) A member of the appointed body shall be deemed to
3 have abandoned his or her office upon failure to attend any
4 regular or special meetings of the appointed body, without
5 excuse approved by resolution of the appointed body, for a
6 period of two months. Upon such vacancy, the appropriate
7 county commissioners shall, forthwith and without more,
8 appoint a successor.
9 (3) The appointed body shall have the power to determine
10 the rules of its proceedings and punish its members for
11 contempt and disorderly behavior in its presence, and with
12 the concurrence of two-thirds, to expel a member.
13 (4) A member expelled shall not thereafter be eligible
14 to the appointed body.
15 (5) Neither expulsion nor punishment for corruption,
16 contempt or disorderly behavior shall bar an indictment for
17 the same offense.
18 (b) Members of the ex officio body shall hold office until
19 their respective terms of office as members of the General
20 Assembly of Pennsylvania have expired.
21 Section 8. Meetings, quorum, approval of resolutions, election
22 of chairman of the appointed body.
23 (a) Meetings of the appointed body shall be held in the
24 region at least once in each calendar month, the time and place,
25 the period of advance notice and the manner of notification of
26 such meetings to be fixed by the appointed body. Special
27 meetings may be held at the call of the chairman or any three
28 members. All action of the appointed body shall be by resolution
29 and the affirmative vote of a majority of all appointed body
30 members present at such meetings shall be necessary for the
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1 adoption of any resolution.
2 (b) Within 90 days after its legal establishment, the
3 appointed body shall elect from among its members a chairman who
4 shall serve for a term of one year and who, until his successor
5 shall have been elected and qualified, shall perform such duties
6 as the appointed body shall, by resolution, determine from time
7 to time.
8 Section 9. Meetings, quorum, approval of resolutions, election
9 of chairman of the ex officio body.
10 (a) Within 90 days after its legal establishment, the ex
11 officio body shall elect from among its members a chairman who
12 shall serve for a term of one year and who, until his successor
13 shall have been elected and qualified, shall perform such duties
14 as the ex officio body shall, by resolution, determine from time
15 to time.
16 (b) Meetings of the ex officio body shall be held at least
17 once annually in the region at the call of the Governor, its
18 chairman or any three members and as often as the Governor, its
19 chairman or any three members deem necessary or appropriate. All
20 action of the ex officio body shall be by resolution and the
21 affirmative vote of a majority of all ex officio body members
22 present at such meeting shall be necessary for the adoption of
23 any resolution.
24 Section 10. Secretary, treasurer, oath, bond.
25 The appointed body shall appoint a secretary and treasurer to
26 hold office at the pleasure of the appointed body without
27 compensation and whose respective duties shall be fixed by the
28 appointed body. Before entering upon the duties of their
29 respective offices they shall take and subscribe the
30 constitutional oath of office. The treasurer and such other
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1 officers and employees of the joint board and such members of
2 the appointed body as the appointed body may determine shall
3 execute corporate surety bonds, conditioned upon the faithful
4 performance of their respective duties. A blanket form of surety
5 bond may be used for this purpose if the appointed body deems
6 such procedure to be practical and prudent. The obligation of
7 the sureties shall not extend to any loss sustained by the
8 insolvency, failure or closing of any National or State bank
9 wherein the treasurer has deposited funds if the bank has been
10 approved by the appointed body as a depository for these funds.
11 The oaths of office and the surety bond or bonds shall be filed
12 in the principal office of the joint board.
13 Section 11. Deposit of funds, checks and drafts; security
14 collateral.
15 (a) All funds of any nature under the control of the joint
16 board shall be deposited in such bank or banks as are authorized
17 to hold the deposits of the general revenues of the Commonwealth
18 of Pennsylvania.
19 (b) All such funds shall be deposited by the treasurer or
20 any officer or employee of the joint board, as the appointed
21 body may designate, in the name of the joint board. Such funds
22 may be withdrawn or paid out only by check or draft upon the
23 bank signed by the treasurer and countersigned by the chairman
24 of the appointed body or by any officer or employee of the joint
25 board as the appointed body may designate.
26 (c) Whenever the business of the joint board requires the
27 affixing of the signature of any officer or employee of the
28 joint board, the use of a facsimile signature, when expressly
29 authorized by resolution of the appointed body shall have the
30 same force and effect as an original signature.
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1 (d) All bank balances to the extent the same are not insured
2 shall be continuously secured by a pledge of direct obligations
3 of the United States of America, of the Commonwealth or any
4 municipality in the region having an aggregate market value,
5 exclusive of accrued interest at all times at least equal to the
6 balance of deposit in such bank. Such securities shall either be
7 deposited with the treasurer of the joint board or be held by a
8 trustee or agent satisfactory to the joint board. All banks and
9 trust companies are authorized to give such security for such
10 balances.
11 Section 12. Signatures of officers ceasing to hold office.
12 In case any officer whose signature appears on any check,
13 draft, bond, certificate or interest coupon issued pursuant to
14 this act, ceases to hold his office before the delivery thereof
15 to the payee or the purchaser of any bond or certificate, the
16 signature nevertheless shall be valid and sufficient for all
17 purposes with the same effect as if he had remained in office
18 until delivery thereof.
19 Section 13. General manager.
20 Before the joint board engages in transportation operations,
21 the appointed body shall appoint a general manager of
22 demonstrated technical competence and experience in
23 transportation matters. No member of the appointed body or ex
24 officio body may be eligible for the position of general
25 manager. The general manager shall receive a salary competitive
26 with salaries afforded such a position in comparable transit
27 communities and the appointed body shall have the power to fix
28 such salary and perquisites. The general manager shall be
29 responsible for hiring and structuring a staff, shall have
30 management of the properties and business of the joint board and
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1 the employees thereof subject to the general control of the
2 appointed body, shall direct the enforcement of all resolutions,
3 rules and regulations of the appointed body and perform such
4 other duties as may be prescribed from time to time by the
5 appointed body.
6 Section 14. Legal division, general counsel.
7 (a) Before the joint board engages in transportation
8 operations, the appointed body shall establish a legal division
9 which shall be administered by a general counsel, who shall be
10 an attorney-at-law admitted to practice before the Supreme Court
11 of the Commonwealth and who shall devote his entire time to, and
12 report solely, to the appointed body and to serve at its
13 discretion. The legal division, in addition to the general
14 counsel, shall consist of such full-time attorneys and other
15 employees as the appointed body from time to time shall
16 determine to be necessary and who shall be appointed by the
17 general counsel, with the approval of the appointed body. The
18 legal division shall administer the legal affairs of the joint
19 board, shall prosecute or defend, settle or compromise all suits
20 or claims by or against the joint board, and shall advise the
21 joint board and its officers in all matters relating to their
22 official duties.
23 (b) The general counsel may, from time to time, with the
24 approval of the appointed body, retain such other legal counsel
25 on such terms and for such purposes as shall be deemed by the
26 appointed body to be necessary or desirable.
27 Section 15. Other employees.
28 (a) The appointed body shall provide for the employment of
29 such other officers, agents, consultants, engineers and
30 employees as may be necessary for the performance of the work of
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1 the joint board. The compensation of the general manager,
2 general counsel, and all other officers, attorneys, consultants,
3 agents and employees shall be fixed by the appointed body. No
4 salaried officer, agent, consultant, engineer or employee of the
5 joint board shall hold any other office in or be an employee of
6 the Federal, State or any county or municipal government except
7 an office or employment without compensation or an office in the
8 military reserve or national guard.
9 (b) The joint board through its appointed body shall deal
10 with and enter into written contracts with the employees of the
11 joint board through elected representatives of such employees or
12 representatives of any labor organization authorized to act for
13 such employees, concerning wages, salaries, hours, working
14 conditions and pension or retirement provisions.
15 (c) The joint board shall recognize and be bound by existing
16 labor union agreements where they exist between labor unions and
17 transportation companies that are acquired, purchased, condemned
18 or leased by the joint board. Such employees shall be entitled
19 to maintain the collective bargaining units existing at the time
20 of the acquisition, condemnation, or lease.
21 (d) In the case of the partial acquisition, purchase,
22 condemnation or conveyance of lease of any transportation
23 companies by the joint board, the joint board shall offer
24 employment to the employees of the former operator as may be
25 agreed upon as the result of negotiations with the
26 representatives of the various classes or crafts involved, which
27 agreement shall specify the manner in which such employees will
28 be identified and assigned to positions. If no agreement with
29 respect to the matters referred to in this subsection is reached
30 by the end of 15 days after the commencement of negotiations the
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1 parties shall, within an additional seven days select a neutral
2 referee. If the parties fail to act within the seven day period
3 or fail to agree on a referee then the Secretary of Labor and
4 Industry of Pennsylvania shall immediately appoint a referee.
5 After a referee has been designated, a hearing on the dispute
6 shall commence as soon as practicable. Not less than seven days
7 prior to the effective date of any conveyance or lease pursuant
8 to the provisions of this act, the referee shall resolve and
9 decide all matters in dispute with respect to the transaction
10 involved. Such agreement shall be made or decision rendered
11 prior to the effective date of the conveyance or lease.
12 (e) In case of any labor dispute where collective bargaining
13 does not result in agreement, the joint board shall offer to
14 submit such dispute to arbitration as provided in the Public
15 Employee Relations act.
16 (f) (i) If the joint board acquires an existing
17 transportation system, such of the employees of such
18 transportation system, except executive and
19 administrative officers as are necessary for the
20 operation thereof by the joint board, shall be
21 transferred to and appointed as employees of the joint
22 board subject to all the rights and benefits of this act.
23 (ii) These employees shall be given seniority credit
24 and sick leave, vacation, insurance and pension credits
25 in addition to any and all fringe benefits in accordance
26 with the records, established past practices or labor
27 agreements from the acquired transportation system.
28 (iii) Members and beneficiaries of any pension or
29 retirement system or other benefits established by the
30 acquired transportation system shall continue to have
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1 rights, privileges, benefits, obligations and status with
2 respect to such established system.
3 (iv) The joint board shall assume the obligations of
4 any transportation system acquired by it with regard to
5 wages, salaries, hours, working conditions, sick leave,
6 health and welfare and pension or retirement provisions
7 for employees.
8 (v) The joint board and the employees through their
9 elected representatives for collective bargaining
10 purposes shall take whatever action may be necessary to
11 have pension trust funds under the joint control of the
12 acquired transportation system and the participating
13 employees through their representatives transferred to
14 the trust fund to be established, maintained and
15 administered jointly by the joint board and the
16 participating employees through their representatives.
17 (g) No employee of any acquired transportation system, who
18 is transferred to a position with the joint board, shall by
19 reason of such transfer be placed in any worse position with
20 respect to workmen's compensation, unemployment compensation,
21 pension, seniority, wages, sick leave, vacation, health and
22 welfare insurance or any other benefits that he enjoyed as an
23 employee of such acquired transportation system.
24 (h) Employees who have left the employ of any acquired
25 transportation system or leave the employ of the joint board to
26 enter the military service of the United States shall have such
27 re-employment rights under the joint board as may be granted
28 under any law of the United States or the Commonwealth of
29 Pennsylvania.
30 (i) Except as otherwise specifically provided herein, the
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1 provisions of the act of July 23, 1970 (P.L.563, No.195), known
2 as the "Public Employe Relations Act" shall apply to the joint
3 board created under this act and its employees.
4 Section 16. Classification of positions and employments;
5 discharge or demotion of officers or employees;
6 hearings; seniority; pensions and retirement.
7 (a) The appointed body shall classify all the offices,
8 positions and grades of regular employment required, excepting
9 that of the chairman of the appointed body, the chairman of the
10 ex officio body, the general manager, secretary, treasurer,
11 general counsel and other attorneys in the legal division, with
12 reference to the duties thereof and the compensation fixed
13 therefor and adopt rules governing appointments to any of such
14 offices or positions on the basis of merit and efficiency. No
15 discrimination shall be made in any appointment or promotion
16 because of sex, race, creed, color or political or religious
17 affiliations. No officer or employee shall be discharged or
18 demoted except for just cause.
19 (b) The appointed body may abolish any office or reduce the
20 force of employees for lack of work or lack of funds, but in so
21 doing the officer or employee with the shortest service record
22 in the class and grade to which he belongs shall be first
23 released from service and shall be reinstated in order of
24 seniority, when additional force of employees is required.
25 Seniority shall be considered a working condition. No qualified
26 person shall be laid off if a transfer to another job, division
27 or department within the transportation system can be arranged.
28 (c) There shall be established and maintained by the joint
29 board a pension and retirement system to provide for payments
30 when due under such system or as modified from time to time by
19770H0553B0601 - 19 -
1 resolution of the appointed body. For this purpose, both the
2 appointed body and the participating employees shall make such
3 periodic payments to the established system as may be determined
4 by such resolution. The appointed body may provide for
5 participation by its employees in the social security program,
6 in lieu of social security payments required to be paid by
7 private corporations engaged in similar activity, shall make
8 payments into such established system at least equal in amount
9 to the amount so required to be paid by such private
10 corporations, or make such other arrangements as will accomplish
11 the same purpose. Provisions shall be made by the appointed body
12 for all officers and employees of the joint board appointed
13 pursuant to this act to become subject to reasonable rules and
14 regulations, members and beneficiaries of the pensions and
15 retirement system, with uniform rights, privileges, obligations
16 and status as to the class in which such officers and employees
17 belong. Members and beneficiaries of any pensions or retirement
18 system established by a transportation system acquired by the
19 joint board shall continue to have rights, privileges, benefits,
20 obligations and status with respect to such previously
21 established system. To achieve the purposes set forth in this
22 subsection, the appointed body shall make appropriate rules and
23 regulations and from time to time shall obtain competent
24 actuarial advice.
25 Section 17. General powers and duties of joint board.
26 (a) The certification by the appointing power of each ex
27 officio body and appointed body member and the constitutional
28 oath of office subscribed by each member, shall be filed with
29 the Department of State. When the appointed body has been
30 organized and its officers elected, the chairman shall certify
19770H0553B0601 - 20 -
1 to the Secretary of the Commonwealth the names and addresses of
2 its officers, as well as the principal office of the joint
3 board. Thereafter, the Secretary of the Commonwealth shall issue
4 a certificate of incorporation. Such certificate shall refer to
5 the joint board by the name which shall be designated by the
6 appointed body. Any change in the location of the principal
7 office shall likewise be certified to the Secretary of the
8 Commonwealth within ten days after such change.
9 (b) In any suit, action or proceeding involving or relating
10 to the validity or enforcement of any contract or act of a joint
11 board, a copy of the certificate of incorporation, duly
12 certified by the Department of State, shall be admissible in
13 evidence, and shall be conclusive proof of the legal
14 establishment of the joint board.
15 (c) A duly certified joint board shall have and may exercise
16 all powers necessary or convenient for the carrying out of the
17 aforesaid purposes, including, but without limiting the
18 generality of the foregoing, the following rights or powers:
19 (1) To have perpetual existence.
20 (2) To sue and be sued, implead and be impleaded,
21 complain and defend in all courts, to petition the Interstate
22 Commerce Commission or other regulatory body, or join in any
23 proceeding before any such bodies or courts in any matter
24 affecting the operation of any project of the joint board.
25 (3) To adopt and use and alter at will a corporate seal.
26 (4) To establish a principal office within a county of
27 the second class and such other office or offices as may be
28 necessary for the carrying on of its duties.
29 (5) To acquire, purchase, hold, lease as lessee and use
30 any franchise, property, real, personal or mixed, tangible or
19770H0553B0601 - 21 -
1 intangible, or any interest therein necessary or desirable
2 for carrying out the purposes of the joint board, and to
3 sell, lease as lessor, transfer and dispose of any property,
4 or interest therein, at any time acquired by it. In
5 exercising any of the powers granted by this paragraph, the
6 joint board shall consider, inter alia, the same value
7 factors as provided in section 18 in determining compensation
8 under the exercise of eminent domain.
9 (6) To acquire by purchase, lease, or otherwise, and to
10 construct, improve, maintain, repair and operate
11 transportation facilities.
12 (7) To make and from time to time amend and repeal
13 bylaws, rules, regulations and resolutions.
14 (8) To appoint officers, agents and employees to
15 prescribe their duties and fix their compensation subject,
16 however, to specific provisions of this act.
17 (9) To fix, alter, charge and collect fares, rates,
18 rentals and other charges for its facilities by zones or
19 otherwise at reasonable rates to be determined exclusively by
20 it, subject to appeal, as hereinafter provided, for the
21 purpose of providing for the payment of all expenses and
22 obligations of the joint board, including the acquisition,
23 construction, improvement, repair, maintenance and operation
24 of its facilities and properties, the payment of the
25 principal and interest on its obligations, and to comply
26 fully with the terms and provisions of any agreements made
27 with the purchasers or holders of any such obligations. The
28 joint board shall determine by itself exclusively, after
29 appropriate public hearing, the facilities to be operated by
30 it, the services to be available to the public, and the rates
19770H0553B0601 - 22 -
1 to be charged therefor. Any person aggrieved by any rate or
2 service or change of service fixed by the joint board may
3 bring an appeal against the joint board in the court of
4 common pleas of any county in the region in which the charge,
5 service or change of service shall be applicable, for the
6 purpose of protesting against any such charge, service or
7 change of service. The grounds for such suits shall be
8 restricted to a manifest and flagrant abuse of discretion or
9 an error of law; otherwise, all such actions by the joint
10 board shall be final. Whenever two or more appeals shall be
11 brought against the same action of the joint board, exclusive
12 jurisdiction for the determination thereof shall be vested in
13 the first court to receive such an appeal, and all other
14 courts receiving subsequent appeals against the same action
15 shall transfer such appeals to the said first court. Upon the
16 finding of an error of law or a manifest and flagrant abuse
17 of discretion, the court shall issue an order setting forth
18 the abuse or error and returning the matter to the joint
19 board for such further action as shall be consistent with the
20 findings of the court. No appeal from the action of the joint
21 board or from the decision of the court of common pleas shall
22 act as a supersedeas, except when taken by the joint board or
23 any municipality, or, in other cases, when specially granted
24 after a finding that irreparable and extraordinary harm will
25 result. The courts shall give priority to all such appeals
26 and no bond shall be required of any party instituting such
27 an appeal under the provisions of this section. The joint
28 board shall fix such rates, fares and charges in such manner
29 that they shall be at all times sufficient in the aggregate,
30 and in conjunction with any grants from Federal or other
19770H0553B0601 - 23 -
1 sources, and any other income available to the joint board,
2 to provide funds:
3 (i) for the payment of all operating costs and
4 expenses which shall be incurred by the joint board; and
5 (ii) for the payment of the interest on and
6 principal of all bonds, certificates and other
7 obligations payable from said revenues and to meet all
8 other charges upon such revenues as provided by any trust
9 agreement executed by the joint board in connection with
10 the issuance of bonds or certificates under this act.
11 The joint board may enter into agreements with the United States
12 Post Office Department for the transportation of mail and
13 payment of compensation to the joint board in lieu of fares for
14 the transportation of letter carriers in uniform at all times.
15 The joint board may make similar agreements with any
16 municipality in and by which they are employed, for the
17 transportation of firemen and public health nurses when in
18 uniform, upon presentation of identification as policemen. The
19 joint board may also provide free transportation for employees
20 of the joint board when in uniform or upon presentation of
21 identification of such employees.
22 (10) To borrow money from private lenders, or from the
23 Commonwealth or Federal Government, or from any municipality
24 in the region in such amounts as may be necessary or
25 desirable for the operation and work of the joint board to
26 make and issue negotiable notes, bonds, refunding bonds and
27 other evidence of indebtedness or obligations of the joint
28 board in connection with any such borrowing or refunding or
29 in payment in whole or in part of all or any part of any
30 transportation system, or any bonds, shares or other
19770H0553B0601 - 24 -
1 securities of any corporation owning or operating any such
2 system, or any franchises, property, equipment or interests
3 acquired or to be acquired by the joint board and to secure
4 the payment of such bonds, or any part thereof, by pledge or
5 deed of trust of all or any of its revenues, rentals and
6 receipts, and to make such agreements with the purchasers or
7 holders of such bonds or with others in connection with any
8 such bonds, whether issued or to be issued as the joint board
9 shall deem advisable and in general, to provide for the
10 security for said bonds and the rights of the holders
11 thereof.
12 (11) To apply for and to accept grants, loans and other
13 assistance from, and to enter into contracts, leases or other
14 transactions with, the Federal Government or any agency or
15 instrumentality thereof, the Commonwealth, any municipality
16 or corporation, or any person whatsoever, for any of the
17 purposes of the joint board, and to enter into any agreement
18 with the Federal Government in relation to such grants,
19 loans, or other assistance. Such agreement shall not conflict
20 with any of the provisions of any trust agreement securing
21 the payment of bonds or certificates of the joint board.
22 (12) To make and execute all contracts and other
23 instruments necessary or convenient to the exercise of the
24 powers of the joint board. Any contract or instrument when
25 signed by the chairman of the appointed body or any other
26 signatory authorized by resolution of said appointed body of
27 the joint board shall be held to have been properly executed
28 for and on its behalf. Without limiting the generality of the
29 foregoing, the joint board is also authorized to enter into
30 contracts for the purchase, lease, operation or management of
19770H0553B0601 - 25 -
1 transportation facilities within or without the region or
2 within or without the Commonwealth. When such facilities are
3 located outside the region, they shall be subject to the
4 jurisdiction of the appropriate regulatory agencies.
5 (13) To acquire by eminent domain any real or personal
6 property including improvements, fixtures and franchises of
7 any kind whatever for the public purposes set forth in this
8 act in the manner hereinafter provided.
9 (14) To pledge, hypothecate, or otherwise encumber, all
10 or any of the revenues or receipts of the joint board as
11 security for all or any of the obligations of the joint
12 board.
13 (15) To do all acts and things necessary for the
14 promotion of its business, and the general welfare of the
15 joint board to carry out the powers granted to it by this act
16 or any other acts.
17 (16) To enter into contracts with the Commonwealth, its
18 agencies and instrumentalities, municipalities or
19 corporations, on such terms as the joint board shall deem
20 proper for the use of any facility of the joint board and
21 fixing the amount to be paid therefor.
22 (17) To enter into contracts of group insurance for the
23 benefit of its employees, or to continue any existing
24 insurance and or pension or retirement system and/or any
25 other employee benefit arrangement.
26 (18) The joint board shall have no power, at any time or
27 in any manner, to pledge the credit or taxing power of the
28 Commonwealth, or any political subdivision, nor shall any of
29 its obligations be deemed to be obligations of the
30 Commonwealth or of any of its political subdivisions, nor
19770H0553B0601 - 26 -
1 shall the Commonwealth or any political subdivision thereof
2 be liable for the payment of principal or interest on such
3 obligations.
4 (19) Private rights and property in the beds of existing
5 public highways vacated in order to facilitate the purposes
6 of the joint board shall not be deemed destroyed or ousted by
7 reason of such vacation, but shall be acquired or relocated
8 by the joint board in the same manner as other property.
9 (20) To have the right to use any public road, street,
10 way, highway, bridge, viaduct or tunnel for the operation of
11 a transportation system within the region. In all cases
12 involving the facilities of a railroad, any operations of
13 which extend beyond the region, the exercise shall be subject
14 to the jurisdiction of the Public Utility Commission under
15 the act of May 28, 1937 (P.L.1053, No.286), known as the
16 "Public Utility Law."
17 (21) To lease property or contract for service,
18 including managerial and operating service, whenever it can
19 more efficiently and effectively serve the public by so
20 doing, rather than conducting its own operations with its own
21 property.
22 (22) To self-insure or otherwise provide for the
23 insurance of any property or operations of the joint board
24 against any risks or hazards.
25 (23) To act as agent of the Commonwealth, or of the
26 Federal Government or any of its instrumentalities or
27 agencies, for the public purposes set out in this act.
28 (24) To conduct examinations and investigations and to
29 hear testimony and take proof, under oath or affirmation at
30 public or private hearings, as hereinafter provided, on any
19770H0553B0601 - 27 -
1 matter material to the public purposes set forth in this act.
2 (25) To make available to the government of a
3 municipality or any appropriate agency, board or commission
4 thereof, the recommendations of the joint board affecting any
5 area in the joint board's field of operation or property
6 therein, which it may deem likely to promote the public
7 health, morals, safety and welfare.
8 (26) (i) To formulate plans for the improvement of
9 transportation in order to promote the economic
10 development of the region in which the joint board
11 operates; to make recommendations concerning mass, rapid
12 or other transportation facilities which the joint board
13 does not own or operate; to make recommendations
14 concerning throughways and arterial highway connections
15 to the Department of Transportation and to other
16 appropriate governmental bodies; and otherwise to
17 cooperate with all such governmental bodies.
18 (ii) The joint board shall obtain a permit from the
19 Department of Transportation for the occupation of any
20 State highway. No request for a permit shall be denied
21 except for cause and except after a public hearing, if
22 requested.
23 (iii) Transit planning by the joint board shall be
24 consistent with areawide comprehensive transportation
25 plans and short-range programs adopted by the
26 organization designated as being responsible for carrying
27 out the applicable Federal and State planning
28 requirements.
29 (iv) No capital grant shall be made to a joint board
30 unless it is consistent with its adopted transportation
19770H0553B0601 - 28 -
1 improvement plans as referred to in this act. Grants for
2 emergency replacement may be made upon completion by the
3 joint board and approval by the Pennsylvania Department
4 of Transportation of an immediate action plan designed to
5 avert an existing or impending transit crisis or service
6 stoppage.
7 (27) It shall be the duty of the joint board, as
8 promptly as possible, to rehabilitate, reconstruct, and
9 extend as possible, all portions of any transportation system
10 acquired by the joint board and to maintain at all times a
11 fast, reliable and economical transportation system suitable
12 and adapted to the needs of the municipalities served by the
13 joint board and for safe, comfortable and convenient service.
14 To that end, the joint board shall make every effort to
15 utilize high speed rights-of-way, private or otherwise, to
16 the maximum extent practicable to avoid air pollution by its
17 vehicles; to abandon no physical property which has useful
18 and economical capabilities, and to extend its transportation
19 services to areas which have sufficient need for them to
20 economically and strategically justify such extension.
21 (28) To agree with the constituent municipalities in
22 which it operates for the lease of present and future
23 municipal property, where such a lease would be advantageous
24 to the joint board in the financing or the operation of
25 improved transportation service.
26 (d) The joint board shall have power to acquire by purchase,
27 condemnation, lease gift, or otherwise, all or any part of the
28 property of any public utility operating a transportation system
29 within the region, including but not limited to the plant,
30 equipment, property rights and property reserve funds,
19770H0553B0601 - 29 -
1 employees' pension or retirement funds, special funds,
2 franchises, licenses, patents, permits, operating rights, and
3 paper documents and records, which said property shall be
4 located within the region and shall be appropriate for the
5 purposes for which the joint board is established, as well as
6 all or any part of the right-of-way, equipment, fixed
7 facilities, and other property of any kind of any such utility
8 extending beyond the boundaries of the region and forming, or
9 capable of forming, part of an integrated regional
10 transportation system or facility including existing and future
11 technologies, systems and services. No interest in the right-of-
12 way of a railroad company the operations of which extend beyond
13 the region shall be acquired or occupied under the power of
14 eminent domain without the consent of said railroad. Such
15 properties, upon acquisition by, or lease to, the joint board,
16 shall become and be operated as part of the transportation
17 system of the joint board, and the joint board shall have all
18 powers in connection with such properties and such operations as
19 are conferred by this act. Except as hereinafter provided, all
20 condemnations authorized by this section shall be pursuant to
21 the act of June 22, 1964 (Sp.Sess., P.L.84, No.6), known as the
22 "Eminent Domain Code." The joint board shall also have the power
23 to enter into agreements to operate any such lines located or
24 extending beyond the boundaries of the region, such agreements
25 to be subject to all other provisions of this act. The joint
26 board shall have power to lease or purchase any municipally-
27 owned local transportation facilities for operation and
28 maintenance by the joint board.
29 (e) All powers of the joint board with respect to eminent
30 domain under any and all applicable provisions of this act shall
19770H0553B0601 - 30 -
1 be subject to the payment by the joint board of just
2 compensation for property or business taken.
3 Section 18. Removal or relocation of utility structures; power
4 of eminent domain.
5 (a) The joint board shall have the power, subject to section
6 17(c)(20) to require persons owning or operating public utility
7 structures and appliances in, upon, under, over, across or along
8 the public roads, streets, or other public ways in which the
9 joint board has the right to own, construct, operate or maintain
10 transportation facilities to remove such public utility
11 structures and appliances from their locations. If any person
12 owning or operating public utility structures and appliances
13 fails or refuses to remove or relocate them, the joint board may
14 remove or relocate them. The joint board shall provide the new
15 location which the structures or appliances as relocated shall
16 occupy and to that end the joint board is hereby authorized to
17 acquire by purchase or by the exercise of the power of eminent
18 domain any necessary land or right-of-way for such purpose, if
19 the new location shall not be in, on or above a highway, road or
20 street. The joint board shall reimburse the public utility for
21 the cost of relocation from privately owned rights-of-way which
22 cost shall be the amounts attributable to the relocation of the
23 structure or appliance after deducting the cost of any increase
24 in the service capacity of the new structure or appliance and
25 any salvage value derived from the old structure or appliance.
26 If an issue shall arise between the joint board and the public
27 utility as to the amount of the cost of relocation or the new
28 location either party may institute a proceeding by complaint
29 before the Pennsylvania Public Utility Commission which is
30 hereby vested with exclusive jurisdiction to hear and determine
19770H0553B0601 - 31 -
1 such issue. Appeal from the order of the commission in any such
2 proceeding may be taken in the same manner as to prescribe by
3 the act of May 28, 1937 (P.L.1053, No.286), known as the "Public
4 Utility Law," for appeals from other orders of the commission.
5 (b) The joint board shall have the power of eminent domain
6 which may be exercised within the region to acquire private
7 property and property devoted to any public use which is
8 necessary for the purposes of the joint board.
9 (1) Title to any property acquired by the joint board
10 through eminent domain shall be an absolute or fee simple
11 title unless a lesser title shall be designated specifically
12 in the eminent domain proceedings.
13 (2) (i) All property of the United States, of the
14 Commonwealth, of any political subdivision thereof, or
15 any body politic and corporate organized as a municipal
16 authority under law of the Commonwealth or by any agency
17 of any of them, or of property used for burial purposes
18 or of places of public worship shall be subject to the
19 exercise of the right of eminent domain by the joint
20 board provided that in an appropriate proceeding to be
21 instituted by the joint board in a court of competent
22 jurisdiction the court finds that a superior social
23 interest is served by the purposes of the joint board's
24 intended utilization of such property than by the then
25 utilization.
26 (ii) Such proceedings shall be heard and determined
27 promptly by such court of competent jurisdiction. All
28 such proceedings shall be heard and decided by the court
29 without a jury and shall be entitled to priority on any
30 trial list so that they may be heard and determined as
19770H0553B0601 - 32 -
1 soon as possible after institution. Any appeal filed from
2 any such determination or order shall be entitled to
3 priority and shall be decided by the appropriate
4 appellate court.
5 (3) Before exercising the power of eminent domain,
6 reasonable efforts shall be made by the joint board to
7 achieve the desired result through negotiation.
8 (4) The power of eminent domain conferred herein shall
9 be exercised by the joint board, when authorized by
10 resolution of the appointed body, in the manner prescribed by
11 the provisions of the act of June 22, 1964 (Sp.Sess., P.L.84,
12 No.6), known as the "Eminent Domain Code," except as such
13 provisions are in conflict with the provisions of this act.
14 (5) In determining just compensation, in any
15 condemnation by the joint board of any property subject to
16 condemnation under the terms of this act.
17 (i) Consideration shall be given to, among other
18 things, the gross annual revenue, the original cost of
19 construction, with particular reference to the amount
20 expended in existing and useful permanent improvements,
21 and with such consideration for the amount in market
22 value of the condemnee's bonds and stocks, if the
23 condemnee be a corporation, as may seem just and fair;
24 the probable earning capacity of the property under
25 particular rates prescribed by statute or ordinance or
26 other municipal contract or fixed by regulatory body, and
27 for the items of expenditures for obsolete equipment and
28 construction as the circumstances and historical
29 development of the properties may warrant. The
30 development and going concern value of such properties,
19770H0553B0601 - 33 -
1 facilities, and franchises, any element of delay under
2 these proceedings; and other elements of value, shall be
3 given such weight as may be just and right in each case,
4 as in other matters involving the valuation of properties
5 and facilities devoted to the public service. Just
6 compensation shall be paid to each condemnee separately,
7 and, in case any condemnee is also the lessee of the
8 properties, facilities and franchises of any other
9 company whose properties, facilities or franchises are
10 acquired or to be acquired hereunder, the total amount
11 awarded with respect thereto shall be apportioned between
12 the owner or owners of such properties, facilities and
13 franchises and any person or persons, company or
14 companies, having an interest therein by virtue of any
15 such lease or series of leases, the purpose of this
16 provision being that the gross amount of just
17 compensations, ascertained and determined as hereinabove
18 provided, shall be distributed, among those rightfully
19 entitled thereto in such manner as may be just and
20 equitable, having in view their respective interests
21 therein; and
22 (ii) where it is contemplated that a substantial
23 portion of the employees of any utility or other property
24 or business shall be transferred to and become employees
25 of the joint board, the determination of just
26 compensation shall give consideration to the effect of
27 fair market value of the property taken, of the amount of
28 the legal liability accrued under any pension or
29 retirement system, plan or program existing immediately
30 prior to such condemnation, with respect to employees in
19770H0553B0601 - 34 -
1 the employ of said utility or other property or business
2 at that time, as well as any employees who shall have
3 previously retired or employees, who may reasonably be
4 expected to retire within any then existing contract
5 period; and such liability shall be assumed by the joint
6 board.
7 (6) Real and personal property of any kind whatever
8 belonging to a public utility corporation providing
9 transportation or transportation related services may be
10 acquired without the approval of the Public Utility
11 Commission: Provided, however, That in all cases involving
12 the facilities of a railroad, any operations of which extend
13 beyond the area in which the joint board operates, the
14 exercise of the power of the joint board under this paragraph
15 shall be subject to the jurisdiction of that commission under
16 sections 409, 410 and 411 of the Public Utility Law.
17 Section 19. Power to buy, lease or sell property.
18 (a) The joint board shall have power to acquire by purchase,
19 condemnation, lease gift, or otherwise, any property and rights
20 useful for its purposes and to sell, lease, transfer or convey
21 any property or rights when no longer useful or exchange the
22 same for other property or rights which are useful for its
23 purposes.
24 (b) The joint board shall have the power as lessor or
25 lessee, to lease to or from private persons any property or
26 rights acquired and financed in part by grants made in
27 accordance with the Federal Urban Mass Transportation Act of
28 1964, the Pennsylvania Urban Mass Transportation Assistance Law
29 of 1967, or any other Federal or State law.
30 Section 20. Power to contract with public utilities.
19770H0553B0601 - 35 -
1 The joint board shall have power to enter into agreements
2 with any public utility operating a railroad or any other
3 transportation facility, either within or without the region for
4 the joint use of any property of the joint board or public
5 utility or the establishment of through routes, joint fares and
6 transfer of passengers.
7 Section 21. Acquisition of capital stock.
8 (a) In the event that the joint board shall own 90% or more
9 of all the outstanding capital stock entitled to vote upon
10 liquidation and dissolution, and not subject by its terms to be
11 called for redemption of any corporation organized and existing
12 under the laws of this Commonwealth and owning transportation
13 facilities, the joint board shall have the power to acquire the
14 remainder of such stock by eminent domain as a part of a plan
15 for the liquidation of said corporation.
16 (b) The power of eminent domain over the remainder of such
17 capital stock shall be exercised by the joint board in the
18 following manner: in the event that the joint board has not
19 agreed with an owner of any of said capital stock as to the
20 value thereof, the joint board shall file, with the court of
21 common pleas of the county in which the corporation's principal
22 place of business is located, its bond for the benefit of said
23 owner and of any other persons who may be found entitled to
24 receive damages for the taking of said capital stock of which
25 said owner shall be obligee, the condition of which bond shall
26 be that the joint board shall pay or cause to be paid, to the
27 owner of said stock or to such other persons as may be found
28 entitled to receive damages for the taking of said capital
29 stock, such amount as the owner or such other persons shall be
30 entitled to receive for the taking of such stock, after such
19770H0553B0601 - 36 -
1 amount shall have been agreed upon by the parties or assessed in
2 the manner provided by subsection (d). Said bond shall be
3 accompanied by proof that notice of the proposed filing was
4 mailed by registered mail not less than ten days prior thereto
5 to the owner of said stock at his address as shown by the
6 records of the corporation. Upon approval by the said court of
7 the said bond, the joint board shall be vested with all the
8 right, title and interest in and to said stock, and said owner
9 and all other persons shall thereupon cease to have any rights
10 or interest with regard to said stock other than the right to
11 compensation for the taking thereof under the procedure set
12 forth in subsection (d). The word "owner," as used in this
13 subsection, means the person in whose name the stock is
14 registered on the books of the corporation.
15 (c) In the event that the joint board shall have contracted
16 in writing to purchase 90% or more of such outstanding capital
17 stock, it shall have the right to obtain the approval of the
18 said court to the bond required by the provisions of subsection
19 (b); but the said approval shall not be effective for the
20 purposes of this section unless and until there is also filed
21 with the prothonotary of the said court, within ten days after
22 said approval, a sworn statement by the chairman of the
23 appointed body attested by the secretary of the joint board,
24 that the joint board has become the owner of 90% or more of such
25 capital stock.
26 (d) If the joint board and the former owner of said stock
27 fail to agree as to the amount which the said former owner is
28 entitled to receive as compensation for the taking of said
29 stock, within 30 days after the approval of the bond by the said
30 court under the provisions of subsection (b) or the filing of
19770H0553B0601 - 37 -
1 the required statement under the provisions of subsection (c),
2 either party may apply, by petition to the said court, for the
3 appointment by the court of three disinterested persons to
4 appraise the fair value of said stock immediately prior to the
5 acquisition thereof by the joint board without regard to any
6 depreciation or appreciation thereof in consequence of such
7 acquisition. The appraisers of a majority thereof shall file
8 their award, shall include the costs of such appraisal, with the
9 court, and shall mail a copy thereof to each party, with the
10 date of filing stated thereupon. When said award is filed with
11 the court, the prothonotary thereof shall mark the same
12 "confirmed nisi" and in case no exceptions are filed thereto
13 within ten days, he shall enter a decree, as of course, that
14 said award is confirmed absolutely. If exceptions to the award
15 are filed by either party before the award is so confirmed, the
16 court shall hear the same and shall have power to confirm,
17 modify, change or otherwise correct the award or refer the same
18 back to the same or new appraisers with like power as to their
19 award. Within 30 days after the final confirmation,
20 modification, changing or correcting of said award, either party
21 may appeal from said decree to the Superior Court or the Supreme
22 Court, as the case may be.
23 Section 22. Use of ways occupied by other passenger utilities.
24 The joint board shall not have the right to use any street or
25 public way, presently occupied by a public utility operating a
26 transportation system, under certificates of public convenience
27 issued by the Public Utility Commission, for a competing
28 purpose, without the agreement of such public utility.
29 Section 23. Loans, bonds and certificates; trust indentures.
30 (a) The joint board shall have the continuing power to
19770H0553B0601 - 38 -
1 borrow money for the purpose of acquiring any transportation
2 system and for acquiring necessary cash working funds or for
3 acquiring, constructing, reconstructing, extending or improving
4 its transportation system or any part thereof and for acquiring
5 any property and equipment useful for the construction,
6 reconstruction, extension, improvement or operation of its
7 transportation system or any part thereof, and for any other of
8 its corporate purposes. The joint board shall also have the
9 continuing power to issue and deliver evidence of its
10 indebtedness in payment in whole or in part for all or any part
11 of any transportation system, or any bonds, shares or other
12 securities of any corporation owning or operating any such
13 system, or any franchises, property, equipment or interests
14 acquired by the joint board. For the purpose of evidencing the
15 obligation of the joint board to repay any money borrowed as
16 aforesaid, or to pay any indebtedness incurred in connection
17 with the acquisition of all or any part of any transportation
18 system, or any bonds, shares or other securities of any
19 corporation owning or operating any such system, or any
20 franchises, property, equipment or interests as aforesaid, the
21 joint board may, pursuant to resolution adopted by the appointed
22 body and ex officio body from time to time, issue and dispose of
23 its interest-bearing bonds or certificates, and may also, from
24 time to time, issue and dispose of its interest-bearing bonds or
25 certificates, to refund any bonds or certificates at maturity or
26 pursuant to redemption provisions or at any time before maturity
27 with the consent of the holders thereof. All such bonds and
28 certificates shall be payable solely from revenues or income to
29 be derived from the transportation system including grants,
30 gifts or contributions from the Federal, State or local
19770H0553B0601 - 39 -
1 governments, their agencies or instrumentalities, or any other
2 source; may bear such date or dates; may mature at such time or
3 times not exceeding 40 years from their respective dates; may
4 bear interest at such rate or rates; may be in such form; may
5 carry such registration privileges; may be executed in such
6 manner; may be payable at such place or places; may be made
7 subject to redemption in such manner and upon such terms with or
8 without premium as is stated on the face thereof; may be
9 authenticated in such manner and may contain such terms and
10 covenants, all as may be authorized by the appointed body and ex
11 officio body. Notwithstanding the form or tenor thereof, and in
12 the absence of an express recital on the face thereof that it is
13 nonnegotiable, all such bonds and certificates shall be
14 negotiable instruments. Pending the preparation and execution of
15 any such bonds or certificates, temporary bonds or certificates
16 may be issued with or without interest coupons as may be
17 authorized by the appointed body.
18 (b) To secure the payment of any or all of such bonds or
19 certificates and for the purpose of setting forth the covenants
20 and undertaking of the joint board in connection with the
21 issuance thereof and the issuance of any additional bonds or
22 certificates payable from such revenue or income as well as the
23 use and application of the revenue or income to be derived from
24 the transportation system, the joint board may execute and
25 deliver a trust indenture or indentures. A remedy for any breach
26 or default of the terms of any such trust indenture by the joint
27 board may be mandamus or injunction proceeding, or other
28 proceeding in law or in equity in any court of competent
29 jurisdiction to compel performance and compliance therewith, but
30 the trust indenture may prescribe by whom or on whose behalf
19770H0553B0601 - 40 -
1 such action may or may not be instituted.
2 (c) Under no circumstances shall any bonds or certificates
3 issued by the joint board or any other obligation of the joint
4 board be or become an indebtedness or obligation of the
5 Commonwealth or any political subdivision thereof.
6 (d) Said bonds (excepting certificates and bonds or
7 certificates issued in payment in whole or in part of all or any
8 part of any transportation system, or any bonds, shares or other
9 securities of any corporation owning or operating any such
10 system, or any franchises, property, equipment or interests) may
11 be sold at public or private sale for such price or prices and
12 at such rate of interest as the appointed body shall determine.
13 (e) Bonds of the joint board which are sold for cash may be
14 sold at not less than 95% of par and accrued interest. In case
15 any of the officers of the joint board, whose signatures appear
16 on any bonds or coupons shall cease to be officers before the
17 delivery of such bonds, their signatures shall, nevertheless, be
18 valid and sufficient for all purposes, the same as if such
19 officers had remained in office until such delivery.
20 (f) The bonds of the joint board, the sale or transfer
21 thereof, and the income therefrom shall, at all times, be free
22 from taxation for State or local purposes under any law of this
23 Commonwealth or political subdivision thereof.
24 (g) Neither the members of the appointed body, the members
25 of the exofficio body, nor any person executing bonds shall be
26 liable personally on any such bonds by reason of the issuance
27 thereof.
28 (h) Any bond reciting in substance that has been issued by
29 the joint board to accomplish the public purposes of this act,
30 shall be conclusively deemed in any suit, action or proceeding
19770H0553B0601 - 41 -
1 involving the validity or enforceability of such bond or
2 security therefor to have been issued for such purpose.
3 Section 24. Acquisition of equipment; agreements and leases.
4 (a) The joint board shall have power to purchase equipment
5 such as cars, trolley buses and motor buses and such other
6 vehicles as it may deem necessary, and may execute agreements,
7 leases and equipment trust certificates in the form customarily
8 used in such cases appropriate to effect such purchase, and may
9 dispose of such equipment trust certificates. When feasible,
10 such certificates shall be offered for public sale in a manner
11 similar to that provided for the sale of bonds in this act. All
12 money required to be paid by the joint board under the
13 provisions of such agreements, leases, and equipment trust
14 certificates, shall be payable solely from the revenue or income
15 to be derived from the transportation system and from grants and
16 loans as provided elsewhere in this act. Payment for such
17 equipment or rentals therefor may be made in installments and
18 the deferred installments may be evidenced by equipment trust
19 certificates payable solely from such revenue, income, grants or
20 loans and title to such equipment shall not vest in the joint
21 board until the equipment trust certificates are paid.
22 (b) The agreement to purchase may direct the vendor to sell
23 and assign the equipment to a bank or trust company duly
24 authorized to transact business in the Commonwealth as trustee
25 for the benefit and security of the equipment trust certificates
26 and may direct the trustee to deliver the equipment to one or
27 more designated officers of the joint board and may authorize
28 the trustee simultaneously therewith to execute and deliver a
29 lease of the equipment to the joint board.
30 (c) The agreements and leases shall be duly acknowledged
19770H0553B0601 - 42 -
1 before some person authorized by law to take acknowledgments of
2 deeds and in the form required for acknowledgments of deeds, and
3 such agreements, leases and equipment trust certificates shall
4 be authorized by resolution of the appointed body and shall
5 contain such covenants, conditions and provisions as may be
6 deemed necessary or appropriate to insure the payment of the
7 equipment trust certificates from the revenue or income to be
8 derived from the transportation system.
9 (d) The covenants, conditions and provisions of the
10 agreements, leases and equipment trust certificates shall not
11 conflict with any of the provisions of any trust indenture
12 securing the payment of bonds or certificates of the joint
13 board.
14 (e) An executed copy of each such agreement and lease shall
15 be filed in the office of the Secretary of the Commonwealth who
16 shall be entitled to receive $1 for each such copy filed with
17 him, and which filing shall constitute notice to any subsequent
18 judgment creditor or any subsequent purchaser. Each vehicle so
19 purchased and leased shall have the name of the owner and lessor
20 plainly marked upon both sides thereof, followed by the words,
21 "owner and lessor."
22 (f) The joint board shall have power by the resolution,
23 trust, indenture, mortgage, lease or other contract to confer
24 upon any obligees holding or representing a specified percentage
25 in bonds, or holding a lease, the right, in addition to all
26 rights that may otherwise be conferred, upon the happening of an
27 event of default as defined in such resolution or instrument, by
28 suit, action or proceeding in any court of competent
29 jurisdiction:
30 (1) To obtain the appointment of a receiver of any real
19770H0553B0601 - 43 -
1 property of the joint board and of the rents and profits
2 therefrom. If such receiver be appointed, he may enter and
3 take possession of such real property, operate the same and
4 collect and receive all revenues or other income thereafter
5 arising therefrom, and shall keep such moneys in a separate
6 account and apply the same in accordance with the obligations
7 of the joint board as the court shall direct.
8 (2) To require the joint board, and the appointed body
9 members thereof, to account as if it and they were the
10 trustees of an express trust.
11 Section 25. Provisions of bonds; trust indentures.
12 In connection with the issuance of bonds or the incurring of
13 obligations under leases, and in order to secure the payment of
14 such bonds or obligations, the joint board, in addition to its
15 other powers, shall have power:
16 (1) To pledge all or any part of its gross or net
17 revenues to which its right then exists or may thereafter
18 come into existence.
19 (2) To mortgage all or any part of its real or personal
20 property then owned or thereafter acquired.
21 (3) To covenant against pledging all or any part of its
22 revenues, or against mortgaging all or any part of its real
23 or personal property to which its right or title exists or
24 may thereafter come into existence, or against permitting or
25 suffering any lien on such revenues or property to covenant
26 with respect to limitations on its right to sell, lease or
27 otherwise dispose of any of its real property, and to
28 covenant as to what other or additional debts or obligations
29 may be incurred by it.
30 (4) To covenant as to the bonds to be issued and as to
19770H0553B0601 - 44 -
1 the issuance of such bonds, in escrow, or otherwise, and as
2 to the use and disposition of the proceeds thereof, to
3 provide for the replacement of lost, destroyed, or mutilated
4 bonds, to covenant against extending the time for payment of
5 its bonds or interest thereon, and to redeem the bonds and to
6 covenant for their redemption and to provide the terms and
7 conditions thereof.
8 (5) To covenant, subject to the limitations contained in
9 this act, as to the amount of revenues to be raised each
10 year, or other period of time, as well as to the use and
11 disposition to be made thereof, to create or to authorize the
12 creation of special funds for debt or other purposes, and to
13 covenant as to the use and disposition of the moneys held in
14 such funds.
15 (6) To prescribe the procedure, if any, by which the
16 terms of any contract with bondholders may be amended or
17 abrogated, the amount of bonds, the holders of which must
18 consent thereto, and the manner in which such consent may be
19 given.
20 (7) To covenant as to the use of any or all of its real
21 or personal property, to warrant its title, and to covenant
22 as to the maintenance of its real and personal property, the
23 replacement thereof, the insurance to be carried thereon, and
24 the use and disposition of insurance moneys.
25 (8) To covenant as to the rights, liabilities, powers
26 and duties arising upon the breach by it of any covenant,
27 condition or obligation, and to covenant and prescribe, in
28 the event of default, as to terms and conditions upon which
29 any or all of its bonds or obligations shall become or may be
30 declared due before maturity, and as to the terms and
19770H0553B0601 - 45 -
1 conditions upon which such declaration and its consequences
2 may be waived.
3 (9) To vest in a trustee, or the holders of bonds, or
4 any proportion of them, the right to enforce the payment of
5 the bonds or any covenants securing or relating to the bonds,
6 to vest in a trustee the rights, in the event of a default by
7 the joint board, to take possession and use, operate and
8 manage any real property and to collect the rents and
9 revenues arising therefrom and to dispose of such moneys in
10 accordance with the agreement of the joint board with such
11 trustee, to provide for the powers and duties of a trustee
12 and to limit liabilities thereof, and to provide the terms
13 and conditions upon which the trustee or the holders of bonds
14 or any proportion of them may enforce any covenant or gifts
15 securing or relating to the bonds.
16 (10) To make covenants other than, and in addition to,
17 the covenants herein expressly authorized; to make such
18 covenants and to do any and all such acts and things as may
19 be necessary or convenient or desirable in order to secure
20 its bonds, or in the absolute discretion of the joint board,
21 as will tend to accomplish the purposes of this act, by
22 making the bonds more marketable notwithstanding that such
23 covenants, acts or things may not be enumerated herein.
24 Section 26. Bonds and certificates to be legal investments.
25 The Commonwealth and all political subdivisions and public
26 bodies and public officers of any thereof, all banks, bankers,
27 trust companies, savings banks and institutions, building and
28 loan associations, savings and loan associations, investment
29 companies and other persons carrying on a banking business, all
30 insurance companies, insurance associations and other persons
19770H0553B0601 - 46 -
1 carrying on an insurance business and all executors,
2 administrators, guardians, trustees and other fiduciaries may
3 legally invest any sinking funds, moneys or other funds
4 belonging to them or within their control in any bonds or
5 certificates issued pursuant to this act, it being the purpose
6 of this section to authorize the investment in such bonds or
7 certificates of all sinking, insurance, retirement,
8 compensation, pension and trust funds, whether owned or
9 controlled by private or public persons or officers.
10 Section 27. Responsibilities of the appointed body;
11 transportation planning; review of operations; budget
12 formulation; bond issues and fare levels.
13 In addition to responsibilities elsewhere specified:
14 (1) The appointed body shall formulate and give effect
15 to a regional transportation plan and all ancillary features
16 thereof as may be determined by the procedures provided under
17 this act. This plan must be devised within two years after
18 the legal establishment of the joint board and must from time
19 to time be modified, altered, extended or otherwise adapted
20 to changing technological and demographic factors. The plan
21 and its subsequent revisions must be approved by the
22 appointed body and thereafter be approved by the ex officio
23 body prior to its implementation.
24 (2) The appointed body shall make an annual review of
25 operations.
26 (3) The appointed body shall formulate both a capital
27 budget and an operating budget. Prior to its implementation
28 both the capital budget and operating budget shall be
29 approved by the appointed body and thereafter be approved by
30 the ex officio body.
19770H0553B0601 - 47 -
1 (4) The appointed body shall be responsible for
2 authorizing bond issues and establishing fare plans. No bond
3 issue or fare plan shall be implemented until after approval
4 by the appointed body and thereafter, approval by the ex
5 officio body.
6 Section 28. Investment and reinvestment of funds.
7 The appointed body shall have the power to invest and
8 reinvest any funds held in reserve or sinking funds not required
9 for immediate disbursement:
10 (1) in the following securities as defined in Chapter 73
11 of Title 20 of the Pennsylvania Consolidated Statutes
12 (relating to fiduciaries investments): obligations of the
13 United States and of the Commonwealth of Pennsylvania; and
14 obligations of Federal organizations; and
15 (2) for sinking fund purposes only, in bonds or
16 certificates of the joint board at a price not to exceed
17 their par value or their call price plus accrued interest;
18 and to sell any of the securities acquired under paragraph
19 (1) whenever the funds are needed for disbursement.
20 Such investment or reinvestment of any fund shall not be in
21 conflict with any provisions of any trust agreement securing the
22 payment of bonds or certificates of the joint board.
23 Section 29. Responsibilities of the ex officio body.
24 (a) The sole functions of the ex officio body shall be:
25 (1) To approve or disapprove any regional transportation
26 plan proposed by the appointed body.
27 (2) To approve or disapprove the capital and operating
28 budgets as may be formulated and proposed by the appointed
29 body.
30 (3) To approve or disapprove such bond issues or fare
19770H0553B0601 - 48 -
1 plans as are formulated and proposed by the appointed body.
2 (b) (1) When any matter, plan, program or other
3 determination shall have been approved by both the appointed
4 body and ex officio body, thereafter the implementation and
5 administration thereof shall be the function solely of the
6 appointed body.
7 (2) If the ex officio body refuses or fails to approve
8 any matter, plan, program or other determination by the
9 appointed body, nevertheless, the appointed body may again
10 formulate appropriate actions to be submitted to the ex
11 officio body for approval or disapproval. With each
12 submission by the appointed body to the ex officio body as
13 required herein, the ex officio body shall within 30 days
14 make a determination of approval or a determination of
15 disapproval with reasons therefor which shall be submitted to
16 the appointed body.
17 (c) If after a second submission by the appointed body, the
18 ex officio body should disapprove, then on petition of the
19 appointed body to the Commonwealth Court of Pennsylvania, that
20 court may, despite the said disapproval, authorize the appointed
21 body to proceed with any such matter, plan, program or other
22 determination of the appointed body.
23 (d) Unless a responsibility under this act shall expressly
24 involve the ex officio body, all powers provided, required or
25 implied under this act, shall be powers of the appointed body.
26 Section 30. Transfers of facilities or things of value to the
27 joint board.
28 Any county, municipality, school district, corporation or
29 person, or group, may and they are hereby authorized to sell,
30 lease, lend, grant, convey, transfer or pay over to the joint
19770H0553B0601 - 49 -
1 board, with or without consideration, any project of any part or
2 parts thereof, or any interest in real or personal property or
3 any funds available for building, construction or improvement
4 purposes, including the proceeds of bonds previously or
5 hereafter issued for building, construction or improvement
6 purposes, or any money or thing of value, including services,
7 which may be used by the joint board in the construction,
8 acquisition, improvement, maintenance or operation of any
9 project or for any other of its corporate purposes, and other
10 law to the contrary notwithstanding.
11 Section 31. Financing of operations.
12 (a) The Commonwealth and the counties included in the region
13 shall enter into a compact with the joint board to provide for
14 proportionate annual contributions to finance such deficits as
15 the joint board may incur in the operation of its public
16 transportation system. Such contributions shall be apportioned
17 on the basis of 70% to the Commonwealth and 30% to the counties
18 respectively served by the joint board, such apportionment to be
19 in accordance with the respective populations of said counties,
20 the amounts of the contributions to be computed on the basis of
21 the operating deficit incurred after all income received by the
22 joint board from its operations and from grants-in-aid by the
23 Federal Government shall be totaled and compared with the joint
24 board's operating costs. The terms of the compact shall be for a
25 period of not less than ten years without regard to any
26 provisions of law to the contrary and shall constitute a
27 commitment and obligation, binding and absolute, on the part of
28 each party signatory, to appropriate and pay over to the joint
29 board the funds required in accordance with the provisions of
30 the compact during each and every year of the number of years
19770H0553B0601 - 50 -
1 specified in the compact. The signatories to the compact shall
2 be the Commonwealth, the appointed body and the county
3 commissioners of such counties as are included in the region.
4 (b) The funding of commitments for financing activities of
5 the joint board on the part of the Commonwealth may be provided
6 either from its general revenues or from taxes specifically
7 designated for the support of the activities of the joint board.
8 The counties signatory to the compact may provide for their
9 financial contribution either by a tax on real property not to
10 exceed two mills on assessed valuations within the county or by
11 any tax permitted to municipalities under the act of December
12 31, 1965 (P.L.1257, No.511), known as "The Local Tax Enabling
13 Act," or any combination thereof as may be decided by the county
14 commissioners respectively. The provisions of The Local Tax
15 Enabling Act shall upon passage of this act be extended to
16 counties, provided however that the proceeds of any taxes levied
17 by counties under authority granted by The Local Tax Enabling
18 Act shall be designated solely for the support of the activities
19 of the joint board.
20 Section 32. Financing of capital requirements.
21 (a) The Commonwealth and the counties included in the region
22 shall enter into a compact with the joint board to provide for
23 the financing of capital requirements planned and designed to
24 serve the needs of the joint board. Such financing may be
25 provided for both short term and long term capital requirements.
26 Contributions to the financing of capital requirements shall be
27 proportionate, and shall be apportioned on a basis of 90% to the
28 Commonwealth and 10% to the counties respectively served, such
29 apportionment to be in accordance with the respective
30 populations of said counties, the amount of the contributions to
19770H0553B0601 - 51 -
1 be computed after all grants-in-aid by the Federal Government
2 have been deducted from the total cost of the project or
3 projects. In the case of short term capital improvements, the
4 terms of the compact shall be for a period of not less than ten
5 years and in the case of long term capital improvements shall be
6 for a term of not less than 30 years. The terms of the compact
7 shall be valid without regard to any provisions of law to the
8 contrary and shall constitute a commitment and obligation,
9 binding and absolute, on the part of each party signatory, to
10 pay to the joint board such sums as are necessary to execute the
11 capital improvements under such apportionment as is provided in
12 this act. The signatories to the compact shall be the
13 Commonwealth, the appointed body and the county commissioners of
14 such counties as are included in the region.
15 (b) The funding for commitment to capital improvements shall
16 be provided by direct appropriations to the joint board by the
17 Commonwealth and by the participating county or counties, either
18 from general revenues, revenues specifically designated for
19 public transportation, or any combination thereof, or from the
20 sale of bonds. The obligations of the Commonwealth and of the
21 county or counties incurred under the compact may, being bonding
22 and absolute, be considered as a valid basis for the issuance of
23 bonds by the joint board itself, and such borrowing for capital
24 improvements by the joint board under the terms and conditions
25 to the compact is authorized by this act.
26 Section 33. Contracts, procurement and sale of property;
27 concessions; advertisement; bidding.
28 (a) Except in the purchase of unique articles or articles
29 which, for any other reason, cannot be obtained in the open
30 market and except as hereinafter provided, competitive bids
19770H0553B0601 - 52 -
1 shall be secured before any purchase of sale, by contract or
2 otherwise is made or before any contract is awarded for
3 construction, alterations, supplies, equipment, repairs or
4 maintenance or for rendering any services to the joint board
5 other than professional services; and the purchase shall be made
6 from or the contract shall be awarded to the lowest responsible
7 bidder; or a sale to the highest responsible bidder. No purchase
8 of any unique article or other articles which cannot be obtained
9 in the open market shall be made without express approval of the
10 board where the amount involved is in excess of $5,000.
11 (b) All purchases and sales in excess of $5,000 shall be
12 awarded after advertising in a local newspaper of general
13 circulation in the region at least two weeks prior to the bid
14 opening. Bids shall be publicly opened and read aloud at a date,
15 time and place designated in the invitation to bid. Invitations
16 to bid shall be sent at least one week prior to the bid opening
17 to at least three potential bidders who are qualified
18 technically and financially to submit bids, or in lieu thereof a
19 memorandum shall be kept on file showing that less than three
20 potential bidders so qualified exist in the market area within
21 which it is practicable to obtain bids.
22 (c) Written price quotations from at least three qualified
23 and responsible vendors shall be obtained for all purchases and
24 sales under $5,000 and over $1,000, or in lieu thereof, a
25 memorandum, approved by the board, shall be kept on file showing
26 that less than three vendors so qualified exist in the market
27 area within which it is practicable to obtain quotations, except
28 as hereinafter provided.
29 (d) Purchases or sales under $1,000 may be negotiated with
30 or without competitive bidding under sound procurement
19770H0553B0601 - 53 -
1 procedures as promulgated and established by the board.
2 (e) Competitive bidding requirements may be waivered if it
3 is determined by the general manager, or in such other manner as
4 the appointed body may by regulation provide, that an emergency
5 directly and immediately affecting customer service, or public
6 health, safety or welfare requires immediate delivery of
7 supplies, materials, equipment or services. A record of
8 circumstances explaining the emergency shall be submitted to the
9 board at its next regular meeting and thereafter kept on file.
10 (f) All concessions granted by the joint board for the sale
11 of products or the rendition of services for a consideration of
12 joint board property shall be awarded only pursuant to written
13 specifications after competitive bidding and to the highest
14 responsible bidder in a manner similar to that required by
15 subsection (e) relating to contracts for procurement involving
16 an expenditure of more than $5,000. The foregoing requirement
17 for competitive bidding shall not apply to any concession which
18 has been granted by a transportation system acquired by the
19 joint board and which by the terms of the agreement granting it
20 will terminate within one year from date of the acquisition of
21 the transportation system by the joint board, nor to any
22 concession involving the estimated receipt by the authority of
23 less than $1,000 over the period for which the concession is
24 granted.
25 (g) Contracts for the sale or lease of real property owned
26 by the joint board shall be awarded after competitive bidding as
27 shown in subsection (b), except where contract is entered into
28 with the Commonwealth or any political subdivision or agency or
29 instrumentality thereof or with the United States Government or
30 any agency or instrumentality thereof.
19770H0553B0601 - 54 -
1 (h) Contracts for the management of joint board-owned
2 property, such as bus routes or subway systems may be
3 negotiated.
4 (i) No contract shall be entered into for construction or
5 improvement or repair of any project or portion thereof, unless
6 the contractor shall give an undertaking with a sufficient
7 surety or sureties approved by the appointed body, and in an
8 amount fixed by the appointed body, for the faithful performance
9 of the contract. All such contracts shall provide among other
10 things that the person or corporation entering into such
11 contract with the joint board will pay for all materials
12 furnished and services rendered for the performance of the
13 contract, and that any person or corporation furnishing such
14 materials or rendering such services may maintain an action to
15 recover for the same against the obligor in the undertaking, as
16 though such person or corporation was named therein, provided
17 the action is brought within one year after the time the cause
18 of action accrued.
19 Section 34. Conflict of interest.
20 Every member of the appointed body, and every employee of the
21 joint board who knowingly has any interest, direct or indirect,
22 in any contract to which the joint board is, or is about to
23 become, a party or in any other business of the joint board, or
24 in any firm or corporation doing business with the joint board,
25 shall make full disclosure of such interest to the appointed
26 body. Failure to disclose such an interest shall constitute
27 misconduct, for which an appointed body member may be removed by
28 the appointing power or an employee may be discharged or
29 otherwise disciplined at the discretion of the appointed body.
30 Whenever, in the opinion of the appointed body, any such
19770H0553B0601 - 55 -
1 interest on the part of any appointed body member or any
2 employee, shall constitute a conflict of interest detrimental to
3 the joint board, the appointed body shall require such action or
4 abstention by such appointed body member or employee as it may
5 deem necessary or desirable to protect the interest of the joint
6 board. The appointed body shall promulgate such rules and
7 regulations as may be necessary to effectuate the purposes of
8 this section.
9 Section 35. Fiscal operating year; budget; capital program.
10 (a) The appointed body shall establish a fiscal operating
11 year.
12 (b) At least 90 days prior to the beginning of the first
13 full fiscal year after the creation of the joint board, and,
14 annually thereafter, the appointed body shall cause to be
15 prepared a tentative operating budget and a tentative capital
16 budget for the ensuing fiscal year. The tentative budgets shall
17 be considered according to procedures specified in this act and
18 shall be adopted at least 30 days prior to the first day of the
19 ensuing fiscal year as the budgets for that year. The appointed
20 body shall establish such rules as are necessary for proper
21 observance of the budgets.
22 (c) Along with an annual operating budget, there shall be
23 prepared an annual operations plan which describes fares,
24 schedules, routes, equipment, garage and maintenance facilities,
25 levels of services, professional staff and qualifications and
26 record keeping to be undertaken in the ensuing fiscal year. Such
27 plan shall also discuss school bus service provided in the
28 region and how school service and services performed by the
29 joint board shall be coordinated.
30 (d) Simultaneously with the adoption of the respective
19770H0553B0601 - 56 -
1 budgets, the appointed body and the ex officio body, subject to
2 procedures set forth in this act shall adopt a tentative capital
3 program covering the ensuing six years.
4 Section 36. Financial statement and reports; audit.
5 (a) As soon after the end of each fiscal year as is
6 feasible, the appointed body shall cause to be prepared and
7 printed a report and financial statement of the joint board's
8 operations for the previous year and of its assets and
9 liabilities. A reasonably sufficient number of copies of such
10 report shall be printed for distribution to persons interested
11 upon request. A copy of such report shall be filed with the
12 Secretary of the Commonwealth, the Secretary of the Pennsylvania
13 Department of Transportation, the county clerk of each county in
14 the region, and the clerk of each municipality which has granted
15 rights to the joint board by ordinance and a copy of such report
16 shall be addressed to and mailed to the mayor and city council
17 or the governing body of such municipality. The appointed body
18 from time to time shall mail to the persons and offices
19 specified in the preceding sentence copies of such interim
20 financial reports as may be prepared by the joint board, copies
21 of all bylaws, rules and regulations, and amendments thereto and
22 copies of the annual financial budgets.
23 (b) The appointed body shall appoint in due time each year a
24 firm of independent certified public accountants as auditors who
25 shall examine the books, records, and accounts of the joint
26 board for the purpose of auditing and reporting upon its
27 financial statement for such year. The report of such auditors
28 shall be appended to such financial statement.
29 Section 37. Transfer of records by Public Utility Commission.
30 In case the joint board acquires the plant, equipment,
19770H0553B0601 - 57 -
1 property and rights in property of any public utility used or
2 useful in the operation of a transportation system, the
3 Pennsylvania Public Utility Commission shall transfer and
4 deliver to the appointed body, upon its demand, in writing, all
5 books, papers and records in control of said commission
6 affecting such public utility exclusively.
7 Section 38. Depreciation and general reserves.
8 (a) Depreciation by the joint board is not permitted.
9 (b) If, by any covenant of the joint board, there is
10 required to be established out of revenues any reserve for debt
11 retirement or property replacements or additions, the amount of
12 the annual provision credited to the reserve as required by this
13 section shall be considered to have been made, to the extent
14 needed, for or toward the corresponding annual requirement of
15 any such covenant.
16 Section 39. Special funds; common cash account and auxiliary
17 short term investment portfolio; reserves.
18 (a) The joint board, pursuant to resolutions adopted from
19 time to time by the appointed body, may establish and create
20 such other and additional special funds as may be found
21 desirable by the board and in and by such resolutions may
22 provide for payments into all special funds from specified
23 sources with such preferences and priorities as may be deemed
24 advisable and may also by any such resolutions provide for the
25 custody, disbursement and application of any moneys in any such
26 special funds consistent with the provisions of this act, and
27 consistent with good accounting practice with due reference to
28 the uniform system of accounts for transportation operations
29 maintained by either the Interstate Commerce Commission or the
30 Pennsylvania Public Utilities Commission.
19770H0553B0601 - 58 -
1 (b) To the extent practicable the joint board may establish
2 a common cash account and auxiliary short term investment
3 portfolio as a depository for all cash of the general or special
4 funds. The interest of each fund therein shall be clearly
5 recorded and preserved at all times. There shall not be any
6 commingling of assets where prohibited by any covenant of the
7 joint board.
8 (c) Nothing contained in this act shall be construed as to
9 prevent the prudent accumulation of reserve funds by the joint
10 board.
11 Section 40. Limitation of actions against joint board.
12 Within six months from the date that any injury was received,
13 or any cause of action accrued, any person who is about to
14 commence any civil action in any court against the joint board
15 for damages on account of any injury to his person shall file in
16 the office of the secretary of the joint board, and also in the
17 office of the general counsel for the joint board, either by
18 himself, herself, his or her agent, or attorney, a statement in
19 writing, signed by himself, herself, his or her agent, or
20 attorney, giving the name of the person to whom the cause of
21 action has accrued, the name and residence of the person
22 injured, the date, and about the hour of the accident, the place
23 or location where the accident occurred, and the name and
24 address of the attending physician, if any. If the notice
25 provided for by this section is not filed as provided, any civil
26 action commenced against the joint board more than six months
27 after the date of injury, shall be dismissed and the person to
28 whom any such cause of action accrued for any personal injury
29 shall be forever barred from further suing.
30 Section 41. Investigations and subpoenas.
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1 (a) The appointed body may investigate all means of
2 transportation and the management thereof, the enforcement of
3 its resolutions, rules and regulations, and the action, conduct,
4 and efficiency of all officers, agents and employees of the
5 joint board. In the conduct of such investigations, the
6 appointed body may hold public hearings on its own motion and
7 shall do so on complaint or petition of any municipality in the
8 region. Each member of the appointed body shall have power to
9 administer oaths and the secretary, by order of the appointed
10 body, shall issue subpoenas to secure the attendance and
11 testimony of witnesses and the production of books and papers
12 relevant to such investigations and to any hearing before the
13 appointed body or any member thereof, or any officers' committee
14 or employees' committee, appointed by the appointed body to hear
15 any complaint of an officer or employee who has been discharged
16 or demoted.
17 (b) Any court of record of this Commonwealth, or any judge
18 thereof, either in term time or vacation, upon application of
19 the appointed body or any member thereof may, in his discretion,
20 compel the attendance of witnesses, the production of books and
21 papers and giving of testimony before the board or before any
22 member thereof, or any officers' committee or employees'
23 committee, appointed by the board by attachment for contempt or
24 otherwise, in the same manner as the production of evidence may
25 be compelled before said court.
26 Section 42. Exemption from taxation.
27 The effectuation of the authorized purposes of the joint
28 board created under this act shall and will be, in all respects,
29 for the benefit of the people of the Commonwealth, for the
30 increase of their commerce and prosperity and for the
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1 improvement of their health and living conditions, and since
2 such joint board will be performing essential governmental
3 functions in effectuating such purposes, it shall not be
4 required to pay any property taxes or assessments, of any kind
5 or nature whatsoever, now in existence or to be enacted in the
6 future, whether imposed by the Commonwealth or by any political
7 subdivision thereof, or by any other taxing authority, and the
8 bonds issued by such joint board, their transfer, and the income
9 therefrom (including any profits made on the sale thereof),
10 shall at all times be free from taxation within the
11 Commonwealth.
12 Section 43. Limitation of powers.
13 The Commonwealth does hereby pledge to and agree with any
14 person, firm or corporation, or Federal agency subscribing to or
15 acquiring the bonds to be issued by the joint board for the
16 construction, extension, improvement or enlargement of any
17 project or part thereof, that the Commonwealth will not limit or
18 alter the rights hereby vested in such joint board until all
19 bonds at any time issued, together with the interest thereon,
20 are fully met and discharged. The Commonwealth does further
21 pledge to and agree with the United States and any other Federal
22 agency that, in the event that any Federal agency shall
23 construct or contribute any funds for the construction,
24 extension, improvement or enlargement of any project or any
25 portion thereof, the Commonwealth will not alter or limit the
26 rights and powers of the joint board in any manner which would
27 be inconsistent with the continued maintenance and operation of
28 the project, or the improvement thereof, or which would be
29 inconsistent with the due performance of any agreements between
30 the joint board and any such Federal agency, and the joint board
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1 shall continue to have and may exercise all powers herein
2 granted, so long as the same shall be necessary or desirable for
3 the carrying out of the purposes of this act and the purposes of
4 the United States in the construction or improvement or
5 enlargement of the project or such portion thereof.
6 Section 44. Repeals.
7 All acts or parts of acts, whether general, special or local,
8 are hereby repealed in so far as they are inconsistent herewith.
9 Section 45. Effective date.
10 This act shall take effect in 60 days.
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