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        PRIOR PRINTER'S NO. 1563                      PRINTER'S NO. 2113

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1095 Session of 2006


        INTRODUCED BY STOUT AND MADIGAN, MARCH 16, 2006

        SENATOR WENGER, APPROPRIATIONS, RE-REPORTED AS AMENDED,
           OCTOBER 3, 2006

                                     AN ACT

     1  Amending the act of July 5, 1984 (P.L.587, No.119), entitled "An
     2     act empowering the Department of Transportation to preserve
     3     and improve rail freight service in the Commonwealth by
     4     making grants, loans or other assistance available to
     5     qualified applicants; authorizing a comprehensive rail study;
     6     making an appropriation; and making repeals," further
     7     providing for definitions and for program authority.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  The definition of "capital project" in section 3
    11  of the act of July 5, 1984 (P.L.587, No.119), known as the Rail
    12  Freight Preservation and Improvement Act, is amended and the
    13  section is amended by adding a definition to read:
    14  Section 3.  Definitions.
    15     The following words and phrases when used in this act shall
    16  have the meanings given to them in this section unless the
    17  context clearly indicates otherwise:
    18     * * *
    19     "Capital project."  Acquisition of property, labor and


     1  materials for equipping, furnishing, constructing,
     2  reconstructing, rehabilitating or improving rail freight
     3  transportation systems or facilities, but shall not include
     4  accelerated maintenance.
     5     * * *
     6     "Railroad user."  Any person, firm or corporation which is a
     7  direct user or promoter of the development of any rail freight
     8  transportation system, facility or service in this Commonwealth.
     9     * * *
    10     Section 2.  Section 6(a) of the act is amended to read:
    11  Section 6.  Program authority.
    12     (a)  Authority.--The department is hereby authorized, within
    13  the limitation herein provided to:
    14         (1)  Provide operating subsidy grants to railroad
    15     companies, transportation organizations or municipalities to
    16     defray, or assist in defraying, the net deficit incurred by
    17     such entities in providing essential rail freight
    18     transportation services within the Commonwealth.
    19         (2)  Provide grants to railroad companies, transportation
    20     organizations, railroad users or municipalities to defray, or
    21     assist in defraying, the cost of accelerated maintenance
    22     projects performed on rail lines within the Commonwealth.
    23         (3)  Undertake capital projects and to provide and
    24     administer capital project grants to railroad companies,
    25     transportation organizations, railroad users or
    26     municipalities. The department shall not operate or provide
    27     directly rail freight transportation services on its own rail
    28     lines or on lines owned by others, nor shall a capital
    29     project be undertaken in order to enable the department to
    30     provide directly rail freight transportation services.
    20060S1095B2113                  - 2 -     

     1     Notwithstanding the provisions of sections 302 and 303 of the
     2     act of February 9, 1999 (P.L.1, No.1), known as the Capital
     3     Facilities Debt Enabling Act. The, THE department is           <--
     4     authorized to make grants for capital projects up to $250,000
     5     without authorization or itemization in an approved capital
     6     budget.
     7         (4)  Acquire by purchase, lease, eminent domain
     8     proceedings, gift or otherwise, all and any property, in such
     9     estate as determined by the secretary, for promoting the
    10     purposes of this act, including the property of a public
    11     utility. All municipalities and corporations are hereby
    12     authorized to donate property to the department. Eminent
    13     domain proceedings shall be in accordance with the act of
    14     June 22, 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent
    15     Domain Code, and the department is empowered to join with any
    16     municipality or transportation organization in obtaining any
    17     property through the eminent domain proceedings.
    18         (5)  Undertake research, studies, analysis and planning,
    19     to make grants to railroad companies, transportation
    20     organizations and municipalities for research, studies
    21     analysis and planning, relating to any phase of rail freight
    22     transportation services, systems and facilities, including
    23     the management, operation, capital requirements and economic
    24     feasibility thereof, and any preparation of engineering and
    25     architectural surveys, plans and specifications and other
    26     similar activities preliminary to and in preparation for
    27     construction, acquisition or improved operation of rail
    28     freight transportation services, systems and facilities
    29     within the Commonwealth.
    30         (6)  Undertake demonstration projects and to make grants
    20060S1095B2113                  - 3 -     

     1     to railroad companies, transportation organizations and
     2     municipalities for demonstration projects, including the
     3     development, testing and demonstration of new facilities,
     4     equipment, techniques and methods of providing rail freight
     5     transportation services, systems and facilities within the
     6     Commonwealth.
     7         (7)  Undertake marketing activities and to make grants to
     8     railroad companies, transportation organizations and
     9     municipalities for marketing activities designed to foster
    10     the fullest and most efficient utilization of rail freight
    11     transportation services, systems and facilities within the
    12     Commonwealth. Marketing activities may be undertaken by
    13     contract with the department or by subcontract with a grantee
    14     of the department, upon approval of the subcontract by the
    15     secretary.
    16         (8)  Undertake audits of any project being financially
    17     assisted by the department. The department may hire outside
    18     auditors to perform such functions or may direct its grantees
    19     to engage such auditors and include the expense thereof as an
    20     eligible program cost.
    21     * * *
    22     Section 3.  This act shall take effect in 60 days.






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