SENATE AMENDED
PRIOR PRINTER'S NOS. 1569, 1968, 2234, PRINTER'S NO. 3229
2290, 2489
No. 1394 Session of 1981
INTRODUCED BY POTT, FRAZIER, MANDERINO, HEISER, FLECK, CESSAR,
CLARK, HORGOS, MRKONIC, OLASZ, DUFFY, PETRONE, TRELLO,
PENDLETON, GRABOWSKI, GREENWOOD, J. L. WRIGHT, SNYDER, BURD,
RASCO, MARMION, WOGAN, McVERRY, W. D. HUTCHINSON,
COCHRAN, DeMEDIO, COLAFELLA, EARLEY, SALVATORE, TELEK,
PETRARCA, KOLTER, PRATT, FEE, PERZEL AND SWEET, MAY 5, 1981
SENATOR MANBECK, TRANSPORTATION, IN SENATE, AS AMENDED,
APRIL 27, 1982
AN ACT
1 To facilitate vehicular traffic across the Commonwealth by
2 providing for the construction, operation and maintenance of
3 turnpike extensions in southwestern Pennsylvania, and
4 conferring powers and imposing duties on the Pennsylvania
5 Turnpike Commission; authorizing the issuance of turnpike
6 revenue bonds, notes or other obligations of the
7 Commonwealth, payable solely from revenues of the commission,
8 including tolls, or from such funds as may be available to
9 the commission for that purpose, to pay the cost of such
10 turnpikes; providing that no debt of the Commonwealth shall
11 be incurred in the exercise of any of the powers granted by
12 this act; providing for the collection of tolls for the
13 payment of such bonds, notes or other obligations, and for
14 the cost of maintenance, operation and repair of the
15 turnpikes; making such turnpike bonds, notes or other
16 obligations exempt from taxation; constituting the same legal
17 investments in certain instances; requiring suits against the
18 commission to be brought in Dauphin County; prescribing
19 conditions on which such turnpikes shall become free;
20 providing for grade separations, grade changes, relocations,
21 restorations and vacation of public roads and State highways
22 affected by the turnpike; providing for the purchasing or
23 condemnation of land and procedure for determining damages in
24 condemnation; granting certain powers and authority to
25 municipalities and agencies of the Commonwealth to cooperate
26 with the commission; and authorizing the issuance of turnpike
27 revenue refunding bonds.
1 TABLE OF CONTENTS
2 Section 1. Short title.
3 Section 2. Definitions.
4 Section 3. Southwestern extensions authorization.
5 Section 4. Status of turnpike revenue bonds.
6 Section 5. Exercise of commission powers deemed essential
7 government function.
8 Section 6. Commission powers and duties enumerated.
9 Section 7. Expenses and bonding of commission members.
10 Section 8. Acquisition of property rights by commission.
11 Section 9. Procedural requirements of acquisition.
12 Section 10. Entry and possession of property condemned.
13 Section 11. Issuance of turnpike revenue bonds.
14 Section 12. Obligation proceeds restricted and lien created.
15 Section 13. Trust indenture authorized.
16 Section 14. Commission and obligations tax exempt.
17 Section 15. Collection and disposition of tolls and other
18 revenue.
19 Section 16. Revenue refunding bonds.
20 Section 17. Rights of obligation holders and trustees.
21 Section 18. Termination of commission.
22 Section 19. Construction of act.
23 Section 20. Repeals.
24 Section 21. Effective date.
25 The General Assembly of the Commonwealth of Pennsylvania
26 hereby enacts as follows:
27 Section 1. Short title.
28 This act shall be known and may be cited as the "Pennsylvania
29 Turnpike System Southwestern Extensions Act."
30 Section 2. Definitions.
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1 The following words and phrases when used in this act shall
2 have the meanings given them in this section unless the context
3 clearly indicates otherwise:
4 "Commission." The Pennsylvania Turnpike Commission created
5 by the act of May 21, 1937 (P.L.774, No.211), referred to as the
6 Pennsylvania Turnpike Commission Act, or if the commission shall
7 be abolished, any board, commission or officer succeeding to the
8 principal functions thereof or upon whom the power and functions
9 given by this act to the commission shall be given by law.
10 "Cost of the turnpikes." Includes the cost of constructing
11 the turnpikes and all connecting roads, storm water management
12 systems, tunnels and bridges, the cost of all lands, property
13 rights, rights-of-way, easements and franchises acquired by
14 purchase or other means, which are deemed necessary or
15 convenient for such construction, the cost of all machinery and
16 equipment, financing charges, interest prior to and during
17 construction and for one year after completion of construction,
18 cost of traffic estimates and of engineering and legal expenses,
19 plans, specifications, surveys, estimates of cost and of
20 revenues, other expenses necessary or incident to determining
21 the feasibility or practicability of the enterprise,
22 administrative and legal expense, and such other expenses as may
23 be necessary or incident to the financing herein authorized, the
24 construction of the turnpikes and connecting roads, storm water
25 management systems, tunnels and bridges, the placing of the same
26 in operation, and the condemnation or other means of acquisition
27 of property necessary for such construction and operation. Any
28 obligation or expense contracted for by the commission with the
29 Department of Transportation of the Commonwealth of
30 Pennsylvania, or with the United States or any agency thereof,
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1 for traffic surveys, preparation of plans and specifications,
2 supervision of construction, and other engineering,
3 administrative and legal services and expenses in connection
4 with the construction of the turnpike or any of the connecting
5 roads, storm water management systems, tunnels and bridges, and
6 any costs of reimbursing the Federal Government pursuant to the
7 mandates of Federal law for funds expended for interstate
8 highways which are to be made part of the turnpike pursuant to
9 this act, shall be regarded as a part of the cost of the
10 turnpikes, and shall be reimbursed or paid out of the proceeds
11 of the turnpike revenue bonds, notes or other obligations
12 hereinafter authorized. Payment of any bonds, notes or other
13 obligations shall be considered payment of the cost of the
14 turnpikes, provided such bonds, notes or other obligations were
15 issued for such purpose.
16 "Owner." Includes all individuals, copartnerships,
17 associations or corporations having any title or interest in any
18 property rights, easements or franchises authorized to be
19 acquired by this act.
20 "The turnpikes." The turnpikes to be constructed, as more
21 particularly described in section 3 and as otherwise provided
22 for in this act, and shall be deemed to include not only the
23 turnpikes and all connecting roads, storm water management
24 systems, tunnels and bridges connected therewith, but also all
25 property rights, easements and franchises relating thereto and
26 deemed necessary or convenient for the construction or the
27 operation thereof.
28 Section 3. Southwestern extensions authorization.
29 (a) In order to facilitate vehicular traffic in the western
30 and southwestern sections of the Commonwealth, the Pennsylvania
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1 Turnpike Commission heretofore created by virtue of the
2 provisions of the act of May 21, 1937 (P.L.774, No.211),
3 referred to as the Pennsylvania Turnpike Commission Act, and the
4 supplements and amendments thereto, is hereby authorized,
5 empowered and directed to construct, operate and maintain
6 turnpikes, at such specific locations and according to such
7 schedule as shall be deemed feasible and approved by the
8 commission as follows:
9 (1) From a point at the intersection of the western
10 extension of the turnpike and interstate 79 in northern
11 Allegheny County in the vicinity of Warrendale; thence in a
12 general southerly direction following and coincident with
13 existing Interstate 79 to the vicinity of Franklin Park;
14 thence in a general south southeasterly direction generally
15 along the line of the proposed North Hills and East Street
16 Valley Expressways to connect with existing Interstate 579
17 (Crosstown Expressway) in the City of Pittsburgh so as to
18 include such ramps, pylons, road surface and base, and other
19 structures added to the southern terminus of said existing
20 Crosstown Expressway providing complete interchanges of said
21 Crosstown Expressway (I-579) portion of the turnpike
22 extension with the Boulevard of the Allies, the Penn-Lincoln
23 Parkway (I-376), the Liberty Bridge thereby providing ingress
24 and egress to the City of Pittsburgh from the areas south of
25 the City of Pittsburgh; thence along the Monongahela River to
26 the Glennwood Bridge; thence in a general southerly direction
27 generally along the line of the proposed Mon Valley
28 Expressway to a point intersecting existing Interstate 70
29 west of the Monongahela River, including the unfinished
30 portions of the Mon-Valley Expressway south of Interstate 70
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1 to U.S. Route 40, plus entrances and exits and any spurs
2 called for in the original plan, and including a spur from
3 just south of the Glennwood Bridge in a general southwesterly
4 direction along the path of the proposed Streets Run
5 Expressway to a point at its intersection with State Route 51
6 in the vicinity of Pleasant Hills, together with connecting
7 roads, storm water management systems, tunnels and bridges.
8 (2) Upon completion of the turnpike extension set forth
9 in paragraph (1) between the aforementioned points, the
10 commission is hereby authorized and empowered, but not
11 directed, to construct, operate and maintain a further
12 extension of the turnpike, at such specific location as shall
13 be approved by the commission, from a point at the
14 intersection of the aforementioned turnpike extension and
15 Interstate 70, thence in a general southeasterly direction to
16 a point at or near the intersection of the Pennsylvania,
17 Maryland and West Virginia borders.
18 (3) The commission is also authorized, empowered and
19 directed to construct, operate and maintain a further
20 extension of the turnpike, at such specific location and
21 according to such schedule deemed feasible and as shall be
22 approved by the commission, from a point or near the
23 intersection of State Route 60 and State Route 168 in
24 Lawrence County, thence in a general southerly direction to a
25 point at or near the intersection of State Route 60 and State
26 Route 51 in Beaver County.
27 (4) The commission is also authorized and empowered to
28 construct, operate and maintain a turnpike at such specific
29 locations as shall be approved by the commission along
30 T.R.119 in the Borough of Youngwood in Westmoreland County in
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1 a northerly direction along T.R.119, T.R.66 and T.R.22 to the
2 Indiana County line.
3 (5) The commission is further authorized to construct,
4 operate and maintain an additional extension of the turnpike,
5 at such specific location as shall be approved by the
6 commission, from a point or near the intersection of State
7 Route 65 and Crows Run Road in Beaver County, in a
8 southeasterly direction to a point at or near the Perry
9 Highway interchange of the Pennsylvania Turnpike.
10 (6) The commission is also authorized to construct,
11 operate and maintain a further extension of the turnpike, at
12 such specific location as shall be approved by the
13 commission, from a point at or near Exit 5 of the turnpike
14 northerly to Brookville, Jefferson County, to a point of
15 intersection with Interstate Route 80.
16 (7) The commission is also authorized, empowered and
17 directed to construct, operate and maintain a further
18 extension of the turnpike, at such specific location and
19 according to such schedule as shall be deemed feasible and
20 which shall be approved by the commission, from a point in
21 the vicinity north of Bradford at the New York border; thence
22 in a generally southerly direction following and coincident
23 where feasible, with existing Route 219 to the vicinity south
24 of Salisbury at the Maryland border, together with connecting
25 roads, storm water management systems, tunnels and bridges.
26 The commission shall determine and prescribe the exact details
27 of the routing between the fixed points indicated in this
28 section, but it shall not deviate from the overall general
29 routes connecting the points described herein. The commission is
30 further authorized and empowered to issue turnpike revenue bonds
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1 of the Commonwealth, notes or other obligations, payable solely
2 from revenues of the commission, including tolls collected on
3 the various extensions authorized by this act and those tolls
4 collected on the Pennsylvania Turnpike System when all financing
5 bonds of that system shall have been redeemed or from such funds
6 as may be available to the commission for that purpose, to pay
7 the cost of any and all construction as otherwise authorized in
8 this act.
9 (b) The commission is also authorized, empowered and
10 directed to construct, operate and maintain a turnpike at such
11 specific location and according to such schedule as shall be
12 deemed feasible and approved by the commission beginning at a
13 point on U.S. Route 40 at Brownsville in Fayette County; thence
14 in a southeasterly direction along U.S. Route 40 to Uniontown;
15 thence in a southerly direction along State Route 857 to the
16 West Virginia border.
17 Section 4. Status of turnpike revenue bonds.
18 The turnpike revenue bonds, notes or other obligations issued
19 under the provisions of this act shall not be deemed to be a
20 debt of the Commonwealth or a pledge of the faith and credit of
21 the Commonwealth, but such bonds, notes or other obligations
22 shall be payable solely from revenues of the commission,
23 including tolls, or from such funds as may be available to the
24 commission for that purpose. All such bonds, notes or other
25 obligations shall contain a statement on their face that the
26 Commonwealth is not obligated to pay the same or the interest
27 thereon except from revenues of the commission, including tolls,
28 or from such funds as may be available to the commission for
29 that purpose, and that the faith and credit of the Commonwealth
30 is not pledged to the payment of the principal or interest of
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1 such bonds, notes or other obligations. The issuance of turnpike
2 revenue bonds, notes or other obligations under the provisions
3 of this act shall not directly or indirectly or contingently
4 obligate the Commonwealth to levy or to pledge any form of
5 taxation whatever therefor or to make any appropriation for
6 their payment.
7 Section 5. Exercise of commission powers deemed essential
8 government function.
9 The exercise by the commission of the powers conferred by
10 this act in the construction, operation and maintenance of the
11 southwestern turnpikes shall be deemed and held to be an
12 essential governmental function of the Commonwealth.
13 Section 6. Commission powers and duties enumerated.
14 The commission is authorized to:
15 (1) Maintain a principal office at such place as shall
16 be designated by the commission.
17 (2) Contract and be contracted with in its own name.
18 (3) Sue and be sued in its own name, plead and be
19 impleaded. Any and all actions at law or in equity against
20 the commission shall be brought only in Commonwealth Court.
21 (4) Have an official seal.
22 (5) Make necessary rules and regulations for its own
23 government.
24 (6) Acquire, hold, accept, own, use, hire, lease,
25 exchange, operate and dispose of, personal property, real
26 property and interests in real property, and to make and
27 enter into all contracts and agreements necessary or
28 incidental to the performance of its duties and the execution
29 of its powers under this act, and to employ engineering,
30 traffic, architectural and construction experts and
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1 inspectors, and attorneys, and such other employees as may in
2 its judgment be necessary, and fix their compensation.
3 (7) The southwestern turnpikes when completed and opened
4 to traffic shall be maintained and repaired by and under the
5 control of the commission and all charges and costs for such
6 maintenance and repairs actually expended by the commission
7 shall be paid out of tolls. The southwestern turnpikes shall
8 also be policed and operated by such force of police,
9 tolltakers and other operating employees as the commission
10 may, in its discretion, employ.
11 (8) The commission shall have authority, at its own
12 cost, to provide grade separations with respect to all public
13 roads, State highways and interstate highways intersected by
14 the turnpikes and to change and adjust the lines and grades
15 thereof so as to accommodate the same to the design of such
16 grade separation. The damages incurred in changing and
17 adjusting the lines and grades of such public roads, State
18 highways and interstate highways shall be ascertained and
19 paid by the commission in the same manner as is provided for
20 by this act in regard to the location and construction of the
21 southwestern turnpikes.
22 (9) If the commission shall find it necessary to provide
23 a grade separation or change the site of any portion of any
24 interstate highway, State highway or public road, or vacate
25 the same, it shall cause it to be reconstructed and restored
26 forthwith, at the commission's own proper expense, on the
27 most favorable location and in as satisfactory a manner as
28 the original road, or vacate it, as the case may be. The
29 method of acquiring the right-of-way and determining damages
30 incurred in changing the location of or vacating such road,
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1 State highway or interstate highway shall be ascertained and
2 paid for by the commission in the same manner as is provided
3 for by this act in regard to the location and construction of
4 the southwestern turnpikes. In such cases, the plan of such
5 reconstruction and restoration or vacation shall be submitted
6 to the governing body of the appropriate municipality for
7 approval, and in the event of failure of the governing body
8 to approve the plan, then it shall be submitted to the
9 Department of Transportation for final approval. In the case
10 of State highways, the plan shall be submitted to the
11 Department of Transportation for its approval. The net
12 proceeds of any damages payable to any municipality or the
13 Department of Transportation under this paragraph which are
14 not expended on the relocation or restoration of the road or
15 highway in question may only be expended, in the case of a
16 municipality, for other road and bridge related expenses, and
17 in the case of the Department of Transportation, for highway
18 and bridge construction, reconstruction or maintenance in the
19 same engineering and maintenance district wherein the
20 relocated or vacated highway is located.
21 (10) Petition the court of common pleas of the county
22 wherein is situate any public road or part thereof affected
23 by the location therein of the turnpike, for the vacation,
24 relocation, or supply of the same, or any part thereof, with
25 the same force and effect as is now given by existing laws to
26 the inhabitants of any township of such county, and the
27 proceedings upon such petition, whether it be for the
28 appointment of viewers or otherwise, shall be the same as
29 provided by existing law for similar proceedings upon such
30 petitions.
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1 (11) The commission shall otherwise have all of the
2 powers and perform all of the duties prescribed by the act of
3 May 21, 1937 (P.L.774, No.211), referred to as the
4 Pennsylvania Turnpike Commission Act.
5 (12) Adequate compensation shall be made by the
6 commission out of funds provided under the authority of this
7 act for damages to all public or private property taken,
8 injured or destroyed in carrying out the powers granted by
9 this act, or such property may be restored or repaired and
10 placed in its original condition as nearly as practicable, as
11 the commission may deem it expedient in any particular case.
12 (13) Conduct a feasibility study to extend the
13 Pennsylvania Turnpike System into various areas of Berks
14 County in order to complete the construction of the Inner
15 Loop System and Outer Loop System of highways surrounding the
16 City of Reading and to complete the missing links on Routes
17 222 to 422 to 1035.
18 (14) CONDUCT A FEASIBILITY STUDY TO EXTEND THE <--
19 PENNSYLVANIA TURNPIKE SYSTEM INTO VARIOUS AREAS OF DELAWARE
20 COUNTY IN ORDER TO COMPLETE THE MID-COUNTY EXPRESSWAY AND TO
21 CONSTRUCT A TURNPIKE EXTENSION BETWEEN KING OF PRUSSIA,
22 MONTGOMERY COUNTY AND A POINT ON INTERSTATE 95 IN THE
23 VICINITY OF CHESTER, PENNSYLVANIA, TO FOLLOW THE CORRIDOR
24 PROPOSED BY THE PENNSYLVANIA DEPARTMENT OF TRANSPORTATION FOR
25 I-476 COMMONLY KNOWN AS THE BLUE ROUTE.
26 Section 7. Expenses and bonding of commission members.
27 (a) Each member of the commission shall be reimbursed for
28 the necessary expenses incurred in the performance of their
29 duties under the provisions of this act.
30 (b) All expenses incurred in carrying out the provisions of
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1 this act shall be paid solely from funds provided under the
2 authority of this act, and sufficient funds shall be provided
3 under the authority of this act to meet any liability or
4 obligation incurred in carrying out the provisions of this act.
5 (c) Before the issuance of any turnpike revenue bonds, notes
6 or other obligations under the provisions of this act, each
7 appointed member of the commission shall execute a bond in the
8 penalty of $25,000, and the secretary and treasurer shall
9 execute a bond in the penalty of $50,000, each bond to be
10 approved by the Governor and to be conditioned upon the faithful
11 performance of the duties of his office under the provisions of
12 this act, which bonds shall be filed in the office of the
13 Secretary of the Commonwealth. If the southwestern turnpike, as
14 defined in this act, shall be designated by the commission as
15 part of the Pennsylvania Turnpike System, as provided in the act
16 of August 14, 1951 (P.L.1232, No.282), referred to as the
17 Pennsylvania Turnpike System Financing Act, the bonds provided
18 for under this section shall no longer be required, and if
19 previously delivered may be cancelled.
20 Section 8. Acquisition of property rights by commission.
21 (a) The commission is hereby authorized and empowered to
22 condemn, by resolution, any lands, interests in lands, property
23 rights, rights-of-way, franchises, easements and other property
24 deemed necessary or convenient for the construction and
25 efficient operation of the southwestern turnpikes or necessary
26 in the restoration or relocation of public or private property
27 damaged or destroyed, and the date of such resolution shall be
28 the effective date of condemnation.
29 (b) The commission is hereby authorized and empowered to
30 acquire by purchase, whenever it shall deem such purchase
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1 expedient, or otherwise accept if dedicated to it, any lands,
2 interests in lands, property rights, rights-of-way, franchises,
3 easements and other property deemed necessary or convenient for
4 the construction and efficient operation of the turnpikes or
5 necessary in the restoration or relocation of public or private
6 property damaged or destroyed, whether the same had theretofore
7 been condemned or otherwise, upon such terms and at such price
8 as may be considered by it to be reasonable and can be agreed
9 upon between the commission and the owner thereof, and to take
10 title thereto in the name of the commission. The net proceeds of
11 any compensation or damages payable to a municipality or the
12 Department of Transportation for any real property or interest
13 therein obtained by the commission pursuant to this act, less
14 the cost of retiring any bonded indebtedness on such property or
15 interest, shall be used exclusively in the case of a
16 municipality, for road and bridge slated expenses and, in the
17 case of the Department of Transportation, for highway and bridge
18 construction, reconstruction and maintenance in the same
19 engineering and maintenance district wherein the subject
20 property is located.
21 Section 9. Procedural requirements of acquisition.
22 (a) Title to any property condemned by the commission shall
23 be taken in the name of the commission. Prior to physical entry
24 upon the land, the commission shall be under no obligation to
25 accept and pay for any property condemned or any costs
26 incidental to any condemnation proceedings. However, in any
27 condemnation proceedings, the court having jurisdiction of the
28 suit, action or proceeding may make such orders as may be just
29 to the commission and to the owners of the property to be
30 condemned, and may require an undertaking or other security to
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1 secure such owners against any loss or damage by reason of the
2 failure of the commission to enter upon, accept and pay for the
3 property, but neither such undertaking or security nor any act
4 or obligation of the commission shall impose any liability upon
5 the Commonwealth except such as may be paid from the funds
6 provided under the authority of this act.
7 (b) The commission, in its discretion, may vacate any
8 portion or all of the land condemned either prior to or after
9 physical entry upon the land or any part thereof and prior to
10 final determination of damages. In such cases, the commission
11 shall be under no obligation to accept and pay for any property
12 condemned and subsequently vacated. However, in any such case,
13 the court having jurisdiction of the suit, action or proceeding
14 may make such orders as may be just to the commission and to the
15 owners of the property, and may require an undertaking or other
16 security to secure such owners against any and all loss or
17 damages occasioned to the owner from the time of the original
18 condemnation to the time of the modification thereof, but
19 neither such undertaking or security nor any act or obligation
20 of the commission shall impose any liability upon the
21 Commonwealth except such as may be paid from the funds provided
22 under the authority of this act.
23 (c) In addition to the foregoing powers, the commission and
24 its authorized agents and employees may enter upon any lands,
25 waters and premises in this Commonwealth for the purpose of
26 making surveys, soundings, drillings and examinations, as it may
27 deem necessary or convenient for the purpose of this act, and
28 such entry shall not be deemed a trespass, nor shall an entry
29 for such purposes be deemed an entry under any condemnation
30 proceedings which may be then pending. However, the commission
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1 shall make reimbursement for any actual damages resulting to
2 such lands, waters and premises as a result of such activities.
3 (d) All political subdivisions and all public agencies and
4 commissions of the Commonwealth, notwithstanding any contrary
5 provision of law, are hereby authorized and empowered to lease,
6 lend, dedicate, grant, convey or otherwise transfer to the
7 commission upon its request upon such terms and conditions as
8 the proper authorities of such political subdivisions, or public
9 agencies and commissions of the Commonwealth may deem reasonable
10 and fair, and without the necessity for any advertisement, order
11 of court or other action or formality, other than the regular
12 and formal action of the authorities concerned, any real
13 property which may be necessary or convenient to the
14 effectuation of the authorized purposes of the commission,
15 including public roads and other real property already devoted
16 to public use.
17 Section 10. Entry and possession of property condemned.
18 Whenever the commission has condemned any lands, rights,
19 rights-of-way, easements and franchises, or interests therein,
20 as otherwise provided in this act, and has tendered a bond or
21 other security to secure the owner or owners for damages and the
22 same has been accepted, or if the acceptance of said bond has
23 been refused and the same has been filed in and approved by the
24 court of common pleas of the county in which the property is
25 located, or, in the case of property located in two or more
26 counties, then in any one of such counties, the commission shall
27 have the right to immediate possession of the property covered
28 by the bond and may enter thereon in the name of the commission.
29 If the owner, lessee or occupier of any of said premises or any
30 building or structure thereon shall refuse to remove his
19810H1394B3229 - 16 -
1 personal property therefrom, or give up possession thereof, the
2 commission may proceed to obtain possession in the manner now
3 provided by law for the obtaining possession by the Secretary of
4 Transportation of occupied structures.
5 Section 11. Issuance of turnpike revenue bonds.
6 (a) The commission is hereby authorized to provide, by
7 resolution, at one time or from time to time, for the issuance
8 of turnpike revenue bonds of the Commonwealth for the purpose of
9 paying the cost, as defined in section 2, of the southwestern
10 turnpikes, which resolution shall recite an estimate of such
11 cost. The principal and interest of such bonds shall be payable
12 solely from revenues of the commission, including tolls
13 collected on the various extensions authorized by this act and
14 those tolls collected on the Pennsylvania Turnpike System when
15 all financing bonds of that system shall have been redeemed or
16 from such funds as may be available to the commission for that
17 purpose. The bonds shall be dated, shall bear interest at such
18 rate or rates acceptable to the commission, payable
19 semiannually, shall mature at such time or times not exceeding
20 40 years from their date or dates, as may be determined by the
21 commission, and may be made redeemable before maturity, at the
22 option of the commission, at such price or prices and under such
23 terms and conditions as may be fixed by the commission prior to
24 the issuance of the bonds. The bonds may be issued in series
25 with varying provisions as to rates of interest, maturity and
26 other provisions not inconsistent with this act, but all bonds,
27 of whatever series, shall share ratably in the tolls hereinafter
28 pledged as security therefor. The principal and interest of such
29 bonds may be made payable in any lawful medium. The commission
30 shall determine the form of bonds, including any interest
19810H1394B3229 - 17 -
1 coupons to be attached thereto, and shall fix the denomination
2 or denominations of the bonds, and the place or places of
3 payment of principal and interest thereof, which may be at any
4 bank or trust company within or without the Commonwealth. The
5 bonds shall bear the facsimile signatures of the Governor and of
6 the chairman of the commission, and the facsimile of the
7 official seal of the commission shall be affixed thereto, and
8 attested by the secretary and treasurer of the commission, and
9 any coupons attached thereto shall bear the facsimile signature
10 of the chairman of the commission. In case any officer whose
11 signature or a facsimile of whose signature shall appear on any
12 bonds or coupons shall cease to be such officer before the
13 delivery of such bonds, such signature or such facsimile shall
14 nevertheless be valid and sufficient for all purposes, the same
15 as if he had remained in office until such delivery. All
16 turnpike revenue bonds issued under the provisions of this act
17 shall have and are hereby declared to have all the qualities and
18 incidents of negotiable instruments under the negotiable
19 instruments law of the Commonwealth. The bonds may be issued in
20 coupon or in registered form, or both, as the commission may
21 determine, and provision may be made for the registration of any
22 coupon bonds as to principal alone and also as to both principal
23 and interest, and registered and coupon bonds shall be
24 interchangeable. The commission may sell such bonds in such
25 manner and for such price as it may determine to be for the best
26 interest of the Commonwealth. The proceeds of such bonds shall
27 be used solely for the payment of the cost of the southwestern
28 turnpikes, and shall be disbursed upon requisition of the
29 chairman of the commission under such restrictions, if any, as
30 the resolution authorizing the issuance of the bonds, or the
19810H1394B3229 - 18 -
1 trust indenture hereinafter mentioned, may provide. If the
2 proceeds of such bonds, by error of calculation or otherwise
3 shall be less than the cost of the southwestern turnpikes,
4 additional bonds may, in like manner, be issued to provide the
5 amount of such deficit and, unless otherwise provided in the
6 resolution authorizing the issuance of the bonds or in the trust
7 indenture, shall be deemed to be of the same issue and shall be
8 entitled to payment from the same fund, without preference or
9 priority of the bonds first issued. If the proceeds of the bonds
10 shall exceed the cost of the southwestern turnpikes, the surplus
11 shall be paid into the fund provided in this act for the payment
12 of principal and interest of such bonds. Prior to the
13 preparation of definitive bonds, the commission may, under like
14 restrictions, issue temporary bonds, with or without coupons,
15 exchangeable for definitive bonds upon the issuance of the
16 latter. The commission may also provide for the replacement of
17 any bond which shall become mutilated or be destroyed or lost.
18 Such turnpike revenue bonds may be issued without any other
19 proceedings or the happening of any other conditions or things
20 than those proceedings, conditions and things which are
21 specified and required by this act.
22 (b) Such bonds are hereby made securities in which all State
23 and municipal officers and administrative departments, boards
24 and commissions of the Commonwealth; all banks, bankers, savings
25 banks, trust companies, saving and loan associations, investment
26 companies and other persons carrying on a banking business; all
27 insurance companies, insurance associations and other persons
28 carrying on an insurance business; and all administrators,
29 executors, guardians, trustees and other fiduciaries; and all
30 other persons whatsoever who now or may hereafter be authorized
19810H1394B3229 - 19 -
1 to invest in bonds or other obligations of the Commonwealth, may
2 properly and legally invest any funds, including capital,
3 belonging to them or within their control, and said bonds are
4 hereby made securities which may properly and legally be
5 deposited with and received by any State or municipal officers
6 or agency of the Commonwealth, for any purpose for which the
7 deposit of bonds or other obligations of the Commonwealth is now
8 or may hereafter be authorized by law.
9 (c) The commission is hereby authorized to borrow money from
10 time to time to provide for preliminary or interim financing, up
11 to but not exceeding the estimated total cost of the turnpikes,
12 and to evidence such borrowing by the issuance of turnpike
13 revenue notes or other revenue obligations of the Commonwealth,
14 and, in its discretion, to pledge as collateral for such notes
15 or other obligations, turnpike revenue bonds issued under the
16 provisions of this act, and to renew any such notes or other
17 obligations from time to time, and the payment or retirement of
18 such notes or other obligations shall be considered to be
19 payment of the cost of such project. All such notes or other
20 obligations shall be executed by the same persons in the same
21 manner and with the same effect as provided herein for the
22 execution of revenue bonds. All such notes or other obligations
23 shall contain a statement on their face that the Commonwealth is
24 not obligated to pay the same or interest thereon, except from
25 revenues of the commission, including tolls, or from such funds
26 as may be available to the commission for that purpose, and that
27 the faith and credit of the Commonwealth is not pledged to the
28 payment of the principal or interest of such notes or other
29 obligations. The issuance of turnpike notes or other obligations
30 under the provisions of this act shall not directly or
19810H1394B3229 - 20 -
1 indirectly or contingently obligate the Commonwealth to levy or
2 to pledge any form of taxation therefor or make any
3 appropriation for their payment.
4 (d) All State and municipal officers and administrative
5 departments, boards and commissions of the Commonwealth; all
6 banks, bankers, savings banks, trust companies, saving and loan
7 associations, investment companies and other persons carrying on
8 a banking business; all insurance companies, insurance
9 associations and other persons carrying on an insurance
10 business, may properly and legally invest any funds, including
11 capital, belonging to them or within their control, in such
12 notes or other obligations, or loan any such funds and accept as
13 evidence of the same such notes or other obligations.
14 (e) All such notes or other obligations shall have and are
15 hereby declared to have all the qualities and incidents of
16 negotiable instruments under the laws of the Commonwealth.
17 Section 12. Obligation proceeds restricted and lien created.
18 All moneys received from any bonds, notes or other
19 obligations issued pursuant to this act shall be applied solely
20 to the payment of the cost of the southwestern turnpikes or to
21 the appurtenant fund, and there shall be and hereby is created
22 and granted a lien upon such moneys, until so applied, in favor
23 of holders of such bonds, notes or other obligations or the
24 trustee hereinafter provided for in respect of such bonds, notes
25 or other obligations.
26 Section 13. Trust indenture authorized.
27 In the discretion of the commission, such bonds, notes or
28 other obligations may be secured by a trust indenture by and
29 between the commission and a corporate trustee, which may be any
30 trust company or bank having the powers of a trust company,
19810H1394B3229 - 21 -
1 within or outside of this Commonwealth. Such trust indenture may
2 pledge or assign tolls and revenue to be received, but shall not
3 convey or mortgage the southwestern turnpikes or any part
4 thereof. Either the resolution providing for the issuance of
5 such bonds, notes, or other obligations or such trust indenture
6 may contain such provisions for protecting and enforcing the
7 rights and remedies of the bondholders or holders of notes or
8 other obligations as may be reasonable and proper and not in
9 violation of law, including covenants setting forth the duties
10 of the commission in relation to the acquisition of properties
11 and the construction, maintenance, operation and repair, and
12 insurance of, the turnpikes, and the custody, safe-guarding and
13 application of all moneys. It shall be lawful for any bank or
14 trust company incorporated under the laws of this Commonwealth
15 to act as a depository of the proceeds of bonds, notes or other
16 obligations or revenues, and to furnish such indemnity bonds or
17 to pledge such securities as may be required by the commission.
18 The trust indenture may set forth the rights and remedies of the
19 bondholders or holders of notes or other obligations and of the
20 trustee, and may restrict the individual right of action of
21 bondholders or holders of notes or other obligations as is
22 customary in trust indentures securing bonds, debentures of
23 corporations, notes or other obligations. In addition to the
24 foregoing, the trust indenture may contain such other provisions
25 as the commission may deem reasonable and proper for the
26 security of bondholders or holders of notes or other
27 obligations. All expenses incurred in carrying out the trust
28 indenture may be treated as part of the cost of maintenance,
29 operation and repair of the southwestern turnpikes.
30 Section 14. Commission and obligations tax exempt.
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1 The accomplishment by the commission of the authorized
2 purposes stated in this act being for the benefit of the people
3 of the Commonwealth and for the improvement of their commerce
4 and prosperity, in which accomplishment the commission will be
5 performing essential governmental functions, the commission
6 shall not be required to pay any taxes or assessments on any
7 property acquired or used by it for the purposes provided in
8 this act, and the bonds, notes or other obligations issued by
9 the commission, their transfer, and the income therefrom,
10 including any profits made on the sale thereof, shall at all
11 times be free from taxation within the Commonwealth.
12 Section 15. Collection and disposition of tolls and other
13 revenue.
14 (a) Consistent with the unique and urban character of the
15 southwestern extensions, the commission is hereby authorized to
16 fix, and to revise from time to time, tolls for the use of the
17 turnpikes and the different parts or sections thereof, and to
18 charge and collect the same, and to contract with any person,
19 partnership, association or corporation desiring the use of any
20 part thereof, including the right-of-way adjoining the paved
21 portion, for placing thereon telephone, telegraph, electric
22 light or power lines, gas stations, garages, stores, hotels,
23 restaurants, and advertising signs, or for any other purpose,
24 except for tracks for railroad or railway use, and to fix the
25 terms, conditions, rents and rates of charges for such use.
26 Tolls shall be so fixed and adjusted as to provide a fund at
27 least sufficient with other revenues of the southwestern
28 turnpikes, if any, to pay:
29 (1) the cost of maintaining, repairing and operating the
30 southwestern turnpikes; and
19810H1394B3229 - 23 -
1 (2) the bonds, notes or other obligations and the
2 interest thereon, and all sinking fund requirements, and
3 other requirements provided by the resolution authorizing the
4 issuance of the bonds, notes or other obligations, or by the
5 trust indenture, as the same shall become due.
6 (b) Tolls shall not be subject to supervision or regulation
7 by any other State commission, board, bureau or agency. The
8 tolls and all other revenues derived from the southwestern
9 turnpikes, except such part thereof as may be required to pay
10 the cost of maintaining, repairing and operating the turnpikes
11 and to provide such reserve therefor as may be provided for in
12 the resolution authorizing the issuance of the bonds, notes or
13 other obligations, or in the trust indenture, shall be set
14 aside, at such regular intervals as may be provided in such
15 resolution or such trust indenture, in a sinking fund, which is
16 hereby pledged to and charged with the payment of:
17 (1) the interest upon such bonds, notes or other
18 obligations, as such interest shall fall due;
19 (2) the principal of the bonds, notes or other
20 obligations, as the same shall fall due;
21 (3) the necessary fiscal agency charges for paying
22 principal and interest; and
23 (4) any premium upon bonds retired by call or purchase,
24 as herein provided.
25 (c) The use and disposition of the sinking fund shall be
26 subject to such regulations as may be provided in the resolution
27 authorizing the issuance of bonds, notes or other obligations,
28 or in the trust indenture, but, except as may otherwise be
29 provided in the resolution or trust indenture, the sinking fund
30 shall be a fund for the benefit of all bonds, notes or other
19810H1394B3229 - 24 -
1 obligations issued under this act, without distinction or
2 priority of one over another. Subject to the provisions of the
3 resolutions authorizing the issuance of bonds, notes or other
4 obligations, or of the trust indenture, any moneys in the
5 sinking fund in excess of an amount equal to one year's interest
6 on all bonds, notes or other obligations then outstanding may be
7 applied to the purchase or redemption of bonds, notes or other
8 obligations. All bonds, notes or other obligations so purchased
9 or redeemed shall forthwith be cancelled and shall not again be
10 issued.
11 Section 16. Revenue refunding bonds.
12 The commission is hereby authorized to provide, by
13 resolution, for the issuance of turnpike revenue refunding bonds
14 of the Commonwealth for the purpose of refunding any turnpike
15 revenue bonds, notes or other obligations issued under the
16 provisions of this act and then outstanding. The issuance of
17 such turnpike revenue refunding bonds, the maturities and other
18 details thereof, the rights of the holders thereof, and the
19 duties of the Commonwealth and of the commission in respect to
20 the same, shall be governed by the provisions of this act
21 insofar as the same may be applicable.
22 Section 17. Rights of obligation holders and trustees.
23 Any holder of bonds, notes or other obligations issued under
24 the provisions of this act, or any of the coupons attached
25 thereto, and the trustee under the trust indenture, if any,
26 except to the extent the rights herein given may be restricted
27 by resolution passed before the issuance of the bonds, notes or
28 other obligations, or by the trust indenture, may, either at law
29 or in equity, by suit, action, mandamus or other proceedings,
30 protect and enforce any and all rights granted hereunder or
19810H1394B3229 - 25 -
1 under such resolution or trust indenture, and may enforce and
2 compel performance of all duties required by this act or by such
3 resolution or trust indenture to be performed by the commission
4 or any officer thereof, including the fixing, charging and
5 collecting of tolls for the use of the turnpikes.
6 Section 18. Termination of commission.
7 When all bonds, notes or other obligations and the interest
8 thereon shall have been paid, or a sufficient amount for the
9 payment of all bonds, notes or other obligations and the
10 interest to maturity thereon shall have been set aside in trust
11 for the benefit of the holders of such bonds, notes or other
12 obligations and shall continue to be held for that purpose, the
13 turnpike and the connecting roads, tunnels and bridges shall
14 become a part of the system of State highways and shall be
15 maintained by the Department of Transportation free of tolls.
16 Thereupon, the commission shall be dissolved, and all funds of
17 the commission not required for the payment of the bonds, notes
18 or other obligations, and all machinery, equipment and other
19 property belonging to the commission, shall be vested in the
20 Department of Transportation.
21 Section 19. Construction of act.
22 This act shall be deemed to provide an additional and
23 alternative method for the doing of things authorized thereby,
24 and shall be regarded as supplemental and additional to powers
25 conferred by other laws, and shall not be regarded as in
26 derogation of any powers now existing. Such sections, being
27 necessary for the welfare of the Commonwealth and its
28 inhabitants, shall be liberally construed to effect the purposes
29 thereof.
30 Section 20. Repeals.
19810H1394B3229 - 26 -
1 All acts or parts of acts inconsistent with this act are
2 repealed to the extent of the inconsistency.
3 Section 21. Effective date.
4 This act shall take effect in 60 days.
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