act-1940-1-11•Pennsylvania Act 1940-11 (session 1) — "PENNSYLVANIA TURNPIKE PHILADELPHIA EXTENSION ACT" (1941 P.L.)
Pennsylvania Act 1940-11 (session 1) — "PENNSYLVANIA TURNPIKE PHILADELPHIA EXTENSION ACT" (1941 P.L.)
act-1940-1-111940 Pa. Act 11 (session 1)Law
Act text
"PENNSYLVANIA TURNPIKE PHILADELPHIA EXTENSION ACT" (1941 P.L.)
Act of May 16, 1940, Special Session 1, P.L. 949, No. 11 Cl. 36
Special Session No. 1 of 1940
No. 1940-11
AN ACT
To facilitate vehicular traffic between the eastern and western
sections of the Commonwealth by providing for the
construction, operation and maintenance of a turnpike from a
point at or near Middlesex in Cumberland County to a point at
the City of Philadelphia and conferring powers and imposing
duties on the Pennsylvania Turnpike Commission; authorizing
the issuance of turnpike revenue bonds of the Commonwealth,
payable solely from tolls, to pay the cost of such turnpike;
providing that no debt of the Commonwealth shall be incurred
in the exercise of any of the powers granted by this act;
providing for the collection of tolls for the payment of such
bonds and for the cost of maintenance, operation and repair
of the turnpike; making such turnpike bonds exempt from
taxation; constituting such bonds legal investments in
certain instances; requiring suits against the commission to
be brought in Dauphin County; prescribing conditions upon
which such turnpike shall become free; providing for grade
separations, grade changes and relocation and restoration of
public roads and State highways affected by the turnpike;
providing for condemnation; granting certain powers and
authority to municipal subdivisions and agencies of the
Commonwealth to cooperate with the commission; and
authorizing the issuance of turnpike revenue refunding bonds.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short Title.--This act shall be known and may be
cited as the "Pennsylvania Turnpike Philadelphia Extension Act."
Section 2. In order to facilitate vehicular traffic between
the eastern and western sections of the Commonwealth, the
Pennsylvania Turnpike Commission heretofore created by virtue of
the provisions of the act, approved the twenty-first day of May,
1937, Pamphlet Laws, 774, is hereby authorized and empowered to
construct, operate and maintain a turnpike, at such location as
shall be approved by the Governor and the Department of
Highways, from a point at or near Middlesex in Cumberland County
to a point at the City of Philadelphia, together with connecting
roads, tunnels and bridges and to issue turnpike revenue bonds
of the Commonwealth, payable solely from tolls, to pay the cost
of such construction.
Section 3. The turnpike revenue bonds issued under the
provisions of this act shall not be deemed to be a debt of the
Commonwealth or a pledge of the faith and credit of the
Commonwealth, but such bonds shall be payable exclusively from
the fund herein provided therefor from tolls. All such bonds
shall contain a statement on their face that the Commonwealth is
not obligated to pay the same or the interest thereon except
from tolls and that the faith and credit of the Commonwealth is
not pledged to the payment of the principal or interest of such
bonds. The issuance of turnpike revenue bonds under the
provisions of this act shall not, directly or indirectly or
contingently, obligate the Commonwealth to levy or to pledge any
form of taxation whatever therefor or to make any appropriation
for their payment.
Section 4. Definitions.--The following words and terms shall
have the following meanings:
(a) The word "commission" shall mean the Pennsylvania
Turnpike Commission heretofore created by the act, approved the
twenty-first day of May, 1937, Pamphlet Laws, 774, or, if said
commission shall be abolished, any board, commission or officer
succeeding to the principal functions thereof or upon whom the
powers and functions given by this act to said commission shall
be given by law.
(b) The word "owner" shall include all individuals,
copartnerships, associations or corporations having any title or
interest in any property rights, easements or franchises
authorized to be acquired by this act.
(c) The words "the turnpike" shall mean the turnpike to be
constructed, as hereinafter provided, from a point at or near
Middlesex in Cumberland County to a point at the City of
Philadelphia and shall be deemed to include not only the
turnpike and all connecting roads, tunnels and bridges connected
therewith, but also all property rights, easements and
franchises relating thereto and deemed necessary or convenient
for the construction or the operation thereof.
(d) The term "cost of the turnpike" shall embrace the cost
of constructing the turnpike and all connecting roads, tunnels
and bridges; the cost of all lands, property rights, rights of
way, easements and franchises acquired which are deemed
necessary or convenient for such construction; the cost of all
machinery and equipment, financing charges, interest prior to
and during construction and for one year after completion of
construction; cost of traffic estimates and of engineering and
legal expenses; plans, specifications, surveys, estimates of
cost and of revenues; other expenses necessary or incident to
determining the feasibility or practicability of the enterprise;
administrative and legal expense; and such other expenses as may
be necessary or incident to the financing herein authorized; the
construction of the turnpike and connecting roads, tunnels and
bridges; the placing of the same in operation; and the
condemnation of property necessary for such construction and
operation. Any obligation or expense contracted for by the
commission with the Department of Highways of the Commonwealth
of Pennsylvania or with the United States or any agency thereof
for traffic surveys, preparation of plans and specifications,
supervision of construction and other engineering,
administrative and legal services and expenses in connection
with the construction of the turnpike or any of the connecting
roads, tunnels and bridges shall be regarded as a part of the
cost of the turnpike and shall be reimbursed or paid out of the
proceeds of the turnpike revenue bonds hereinafter authorized.
Section 5. The exercise by the commission of the powers
conferred by this act in the construction, operation and
maintenance of the turnpike shall be deemed and held to be an
essential governmental function of the Commonwealth.
Section 6. The commission shall have the following powers
and duties:
(a) It shall maintain a principal office at such place as
shall be designated by the commission.
(b) The commission may contract and be contracted with in
its own name.
(c) The commission may sue and be sued in its own name,
plead and be impleaded: Provided, however, That any and all
actions at law or in equity against the commission shall be
brought only in the proper courts at the county of Dauphin.
(d) The commission shall have an official seal.
(e) The commission shall make necessary rules and
regulations for its own government and shall have power and
authority to acquire, own, use, hire, lease, operate and dispose
of personal property, real property and interests in real
property, and to make and enter into all contracts and
agreements necessary or incidental to the performance of its
duties and the execution of its powers under this act, and to
employ engineering, traffic, architectural and construction
experts and inspectors and attorneys and such other employes as
may in its judgment be necessary and fix their compensation:
Provided, however, That all contracts and agreements relating to
the construction of the turnpike and connecting roads, tunnels
and bridges shall be approved by the Department of Highways, and
the turnpike and connecting roads, tunnels and bridges shall be
constructed under the supervision of the Department of Highways.
(f) The turnpike when completed and opened to traffic shall
be maintained and repaired by, and under the control of, the
commission through the Department of Highways of the
Commonwealth, and all charges and costs for such maintenance and
repairs actually expended by said Department of Highways shall
be paid to it by the commission, upon certification thereof, out
of tolls. Such turnpike shall also be policed and operated by
such force of police, tolltakers and other operating employes as
the commission may in its discretion employ.
(g) The commission shall have authority at its own cost to
provide grade separations with respect to all public roads and
State highways intersected by the turnpike and to change and
adjust the lines and grades thereof so as to accommodate the
same to the design of such grade separation: Provided, however,
That the damages incurred in changing and adjusting the lines
and grades of such public roads and State highways shall be
ascertained and paid by the commission in the same manner as is
provided for by this act in regard to the location and
construction of the turnpike. The plan of such changes of the
lines and grades of public roads shall be subject to the
approval of the supervisors of the proper township and in the
case of State highways subject to the approval of the Department
of Highways.
(h) If the commission shall find it necessary to change the
site of any portion of any State highway or public road, it
shall cause the same to be reconstructed and restored forthwith,
at the commission's own proper expense, on the most favorable
location and in as satisfactory a manner as the original road:
Provided, That the damages incurred in changing the location of
any such road or State highway shall be ascertained and paid by
the commission in the same manner as is provided for by this act
in regard to the location and construction of the turnpike. The
plan of such reconstruction and restoration shall be subject to
the approval of the supervisors of the proper township and in
the case of a State highway subject to the approval of the
Department of Highways.
(i) The commission shall have authority to petition the
Court of Quarter Sessions of the county wherein is situate any
public road or part thereof affected by the location therein of
the turnpike for the vacation, relocation or supply of the same,
or any part thereof, with the same force and effect as is now
given by existing laws to the inhabitants of any township of
such county, and the proceedings upon such petition, whether it
be for the appointment of viewers or otherwise, shall be the
same as provided by existing law for similar proceedings upon
such petitions.
(j) The commission shall otherwise have all of the powers
and perform all of the duties prescribed by the act, approved
the twenty-first day of May, 1937, Pamphlet Laws, 774.
(k) All public or private property damaged or destroyed in
carrying out the powers granted by this act shall be restored or
repaired and placed in their original condition, as nearly as
practicable, or adequate compensation made therefor out of funds
provided under the authority of this act.
Section 7. (a) Each member of the commission shall be
reimbursed for the necessary expenses incurred in the
performance of the duties performed under the provisions of this
act.
(b) All expenses incurred in carrying out the provisions of
this act shall be paid solely from funds provided under the
authority of this act, and no liability or obligation shall be
incurred hereunder beyond the extent to which money shall have
been provided under the authority of this act.
(c) Before the issuance of any turnpike revenue bonds under
the provisions of this act each appointed member of the
commission shall execute a bond in the penalty of $25,000, and
the secretary and treasurer shall execute a bond in the penalty
of $50,000 each, such bond to be approved by the Governor and to
be conditioned upon the faithful performance of the duties of
his office under the provisions of this act, which bonds shall
be filed in the office of the Secretary of the Commonwealth.
(d) The chairman of the commission shall receive an annual
salary of one thousand five hundred dollars ($1500), and the
other appointed members of the commission shall each receive an
annual salary of one thousand dollars ($1000), payable in
monthly installments, solely from funds provided under the
authority of this act, to begin when such funds shall have been
provided. ((d) added June 20, 1947, P.L.656, No.282)
Section 8. The commission, with the approval of the
Department of Highways, is hereby authorized and empowered to
acquire by purchase, whenever it shall deem such purchase
expedient, any lands, property rights, rights of way,
franchises, easements and other interests in lands as it may
deem necessary or convenient for the construction and operation
of the turnpike, upon such terms and at such price as may be
considered by it to be reasonable and can be agreed upon between
the commission and the owner thereof, and to take title thereto
in the name of the commission.
Section 9. Whenever a reasonable price cannot be agreed
upon, or whenever the owner is legally incapacitated, or is
absent, or is unable to convey valid title, or is unknown, the
commission is hereby authorized and empowered to acquire by
condemnation, in the manner hereinafter provided, any lands,
property rights, rights of way, franchises, easements and other
property deemed necessary or convenient for the construction or
the efficient operation of the turnpike or necessary in the
restoration of public or private property damaged or destroyed.
Title to any property condemned by the commission shall be taken
in the name of the commission. Prior to physical entry upon the
land the commission shall be under no obligation to accept and
pay for any property condemned or any costs incidental to any
condemnation proceedings: Provided, however, That in any
condemnation proceedings the court having jurisdiction of the
suit, action or proceeding may make such orders as may be just
to the commission and to the owners of the property to be
condemned and may require an undertaking or other security to
secure such owners against any loss or damage by reason of the
failure of the commission to enter upon, accept and pay for the
property, but neither such undertaking or security nor any act
or obligation of the commission shall impose any liability upon
the Commonwealth, except such as may be paid from the funds
provided under the authority of this act.
All counties, cities, boroughs, townships and other political
subdivisions and municipalities and all public agencies and
commissions of the Commonwealth of Pennsylvania, notwithstanding
any contrary provision of law, are hereby authorized and
empowered to lease, lend, grant or convey to the commission upon
its request upon such terms and conditions as the proper
authorities of such counties, cities, boroughs, townships, other
political subdivisions and municipalities or public agencies and
commissions of the Commonwealth of Pennsylvania may deem
reasonable and fair and without the necessity for any
advertisement, order of court or other action or formality,
other than the regular and formal action of the authorities
concerned, any real property which may be necessary or
convenient to the effectuation of the authorized purposes of the
commission, including public roads and other real property
already devoted to public use.
(9 repealed in part June 3, 1971, P.L.118, No.6)
Section 10. Whenever the commission decides to acquire any
lands, rights, rights of way, easements and franchises or
interests therein by condemnation, as hereinbefore provided, and
has tendered a bond or other security to secure the owner or
owners for damages, and the same has been accepted, or, if the
acceptance of said bond has been refused and the same has been
filed in and approved by the court in which such condemnation
proceeding is instituted, the commission shall have the right to
immediate possession of the property which is the subject matter
of the condemnation proceedings and may enter thereon in the
name of the commission. If the owner, lessee or occupier of any
of said premises shall refuse to remove his personal property
therefrom or give up possession thereof, the commission may
proceed to obtain possession in the manner now provided by law
for the obtaining possession by the Secretary of Highways of
occupied structures.
Section 11. The commission is hereby authorized to provide
by resolution at one time, or from time to time, for the
issuance of turnpike revenue bonds of the Commonwealth for the
purpose of paying the cost as hereinabove defined of the
turnpike, which resolution shall recite an estimate of such
cost. The principal and interest of such bonds shall be payable
solely from the special fund herein provided for such payment.
The bonds shall be dated, shall bear interest at such rate or
rates not exceeding six per centum per annum, payable
semiannually, shall mature at such time or times not exceeding
forty years from their date or dates, as may be determined by
the commission, and may be made redeemable before maturity at
the option of the commission at such price or prices and under
such terms and conditions as may be fixed by the commission
prior to the issuance of the bonds: Provided, however, That the
amount of premium on any bonds shall not cause the yield to be
more than six per centum per annum from the date of such bonds
to the date of their redemption. The bonds may be issued in
series with varying provisions as to rates of interest, maturity
and other provisions not inconsistent with this act, but all
bonds of whatever series shall share ratably in the tolls
hereinafter pledged as security therefor. The principal and
interest of such bonds may be made payable in any lawful medium.
The commission shall determine the form of bonds, including any
interest coupons to be attached thereto, and shall fix the
denomination or denominations of the bonds and the place or
places of payment of principal and interest thereof which may be
at any bank or trust company within or without the Commonwealth.
The bonds shall be signed by the Governor and by the chairman of
the commission, and the official seal of the commission shall be
affixed thereto and attested by the secretary and treasurer of
the commission, and any coupons attached thereto shall bear the
facsimile signature of the chairman of the commission. In case
any officer whose signature shall appear on any bonds or coupons
shall cease to be such officer before the delivery of such
bonds, such signature shall nevertheless be valid and sufficient
for all purposes the same as if he had remained in office until
such delivery. All turnpike revenue bonds issued under the
provisions of this act shall have and are hereby declared to
have all the qualities and incidents of negotiable instruments
under the negotiable instruments law of the Commonwealth. The
bonds may be issued in coupon or in registered form, or both, as
the commission may determine, and provision may be made for the
registration of any coupon bond as to principal alone and also
as to both principal and interest, and registered and coupon
bonds shall be interchangeable. The commission may sell such
bonds in such manner and for such price as it may determine to
be for the best interest of the Commonwealth, but no such sale
shall be made at a price so low as to require the payment of
interest on the money received therefor at more than six per
centum per annum computed with relation to the absolute maturity
of the bonds in accordance with standard tables of bond values.
The proceeds of such bonds shall be used solely for the payment
of the cost of the turnpike and shall be disbursed upon
requisition of the chairman of the commission under such
restrictions, if any, as the resolution authorizing the issuance
of the bonds or the trust indenture, hereinafter mentioned, may
provide. If the proceeds of such bonds, by error of calculation
or otherwise, shall be less than the cost of the turnpike,
additional bonds may in like manner be issued to provide the
amount of such deficit, and, unless otherwise provided in the
resolution authorizing the issuance of the bonds or in the trust
indenture, shall be deemed to be of the same issue and shall be
entitled to payment from the same fund without preference or
priority of the bonds first issued. If the proceeds of the bonds
shall exceed the cost of the turnpike, the surplus shall be paid
into the fund, hereinafter provided, for the payment of
principal and interest of such bonds. Prior to the preparation
of definitive bonds the commission may, under like restrictions,
issue temporary bonds, with or without coupons, exchangeable for
definitive bonds upon the issuance of the latter. The commission
may also provide for the replacement of any bond which shall
become mutilated or be destroyed or lost. Such turnpike revenue
bonds may be issued without any other proceedings or the
happening of any other conditions or things than those
proceedings, conditions and things which are specified and
required by this act.
Such bonds are hereby made securities in which all State and
municipal officers and administrative departments, boards and
commissions of the Commonwealth, all banks, bankers, savings
banks, trust companies, saving and loan associations, investment
companies and other persons carrying on a banking business, all
insurance companies, insurance associations and other persons
carrying on an insurance business, and all administrators,
executors, guardians, trustees and other fiduciaries, and all
other persons whatsoever, who now or may hereafter be authorized
to invest in bonds or other obligations of the Commonwealth, may
properly and legally invest any funds, including capital
belonging to them or within their control; and said bonds or
other securities or obligations are hereby made securities which
may properly and legally be deposited with and received by any
State or municipal officers or agency of the Commonwealth for
any purpose for which the deposit of bonds or other obligations
of the Commonwealth is now or may hereafter be authorized by
law.
Section 12. All moneys received from any bonds issued
pursuant to this act shall be applied solely to the payment of
the cost of the turnpike or to the appurtenant fund, and there
shall be, and hereby is created and granted, a lien upon such
moneys until so applied in favor of holders of such bonds or the
trustee hereinafter provided for in respect of such bonds.
Section 13. In the discretion of the commission such bonds
may be secured by a trust indenture by and between the
commission and a corporate trustee, which may be any trust
company or bank having the powers of a trust company within or
outside of the Commonwealth. Such trust indenture may pledge or
assign tolls and revenue to be received, but shall not convey or
mortgage the turnpike or any part thereof. Either the resolution
providing for the issuance of such bonds or such trust indenture
may contain such provisions for protecting and enforcing the
rights and remedies of the bondholders as may be reasonable and
proper and not in violation of law, including covenants setting
forth the duties of the commission in relation to the
acquisition of properties and the construction, maintenance,
operation and repair and insurance of the turnpike and the
custody, safeguarding and application of all moneys. It shall be
lawful for any bank or trust company incorporated under the laws
of this Commonwealth to act as depository of the proceeds of the
bonds or revenues and to furnish such indemnity bonds or to
pledge such securities as may be required by the commission.
Such indenture may set forth the rights and remedies of the
bondholders and of the trustee and may restrict the individual
right of action of bondholders as is customary in trust
indentures securing bonds and debentures of corporations. In
addition to the foregoing such trust indenture may contain such
other provisions as the commission may deem reasonable and
proper for the security of bondholders. All expenses incurred in
carrying out such trust indenture may be treated as a part of
the cost of maintenance, operation and repair of the turnpike.
Section 14. The accomplishment by the commission of the
authorized purposes stated in this act being for the benefit of
the people of the Commonwealth and for the improvement of their
commerce and prosperity, in which accomplishment the commission
will be performing essential governmental functions, the
commission shall not be required to pay any taxes or assessments
on any property acquired or used by it for the purposes provided
in this act, and the bonds or other securities and obligations
issued by the commission, their transfer and the income
therefrom, including any profits made on the sale thereof, shall
at all times be free from taxation within the Commonwealth.
Section 15. The commission is hereby authorized to fix and
to revise from time to time tolls for the use of the turnpike
and the different parts or sections thereof and to charge and
collect the same and to contract with any person, partnership,
association or corporation desiring the use of any part thereof,
including the right of way adjoining the paved portion, for
placing thereon telephone, telegraph, electric light or power
lines, gas stations, garages, stores, hotels, restaurants and
advertising signs, or for any other purpose, except for tracks
for railroad or railway use, and to fix the terms, conditions,
rents and rates of charges for such use. Such tolls shall be so
fixed and adjusted as to provide a fund at least sufficient with
other revenues of the turnpike, if any, to pay (a) the cost of
maintaining, repairing and operating the turnpike and (b) the
bonds and the interest thereon and all sinking fund requirements
and other requirements provided by the resolution authorizing
the issuance of the bonds or by the trust indenture as the same
shall become due. Such tolls shall not be subject to supervision
or regulation by any other State commission, board, bureau or
agency. The tolls and all other revenues derived from the
turnpike, except such part thereof as may be required to pay the
cost of maintaining, repairing and operating the turnpike and to
provide such reserves therefor as may be provided for in the
resolution authorizing the issuance of the bonds or in the trust
indenture, shall be set aside at such regular intervals as may
be provided in such resolution or such trust indenture in a
sinking fund which is hereby pledged to and charged with the
payment of (1) the interest upon such bonds as such interest
shall fall due; (2) the principal of the bonds as the same shall
fall due; (3) the necessary fiscal agency charges for paying
principal and interest, and (4) any premium upon bonds retired
by call or purchase as herein provided. The use and disposition
of such sinking fund shall be subject to such regulations as may
be provided in the resolution authorizing the issuance of bonds
or in the trust indenture but, except as may otherwise be
provided in such resolution or trust indenture, such sinking
fund shall be a fund for the benefit of all bonds issued
hereunder without distinction or priority of one over another.
Subject to the provisions of the resolutions authorizing the
issuance of bonds or of the trust indenture, any moneys in such
sinking fund in excess of an amount equal to one year's interest
on all bonds then outstanding may be applied to the purchase or
redemption of bonds. All bonds so purchased or redeemed shall
forthwith be cancelled and shall not again be issued.
Section 16. The commission is hereby authorized to provide
by resolution for the issuance of turnpike revenue refunding
bonds of the Commonwealth for the purpose of refunding any
turnpike revenue bonds issued under the provisions of this act
and then outstanding. The issuance of such turnpike revenue
refunding bonds, the maturities and other details thereof, the
rights of the holders thereof and the duties of the Commonwealth
and of the commission in respect to the same shall be governed
by the foregoing provisions of this act in so far as the same
may be applicable and by the following provisions:
(a) No turnpike revenue refunding bonds shall be delivered
unless delivered in exchange for turnpike revenue bonds to be
refunded thereby, except in the amount necessary to provide for
the payment of matured or redeemable turnpike revenue bonds or
turnpike revenue bonds maturing or redeemable within three
months, including any redemption premium thereon.
(b) No turnpike revenue refunding bonds shall be issued
unless issued to refund turnpike revenue bonds which have
matured or will mature within three months or unless the
interest rate of the turnpike revenue refunding bonds shall be
at least one-fourth of one per centum less than the interest
rate borne by the turnpike revenue bonds to be refunded.
Section 17. Any holder of bonds issued under the provisions
of this act or any of the coupons attached thereto and the
trustee under the trust indenture, if any, except to the extent
the rights herein given may be restricted by resolution passed
before the issuance of the bonds or by the trust indenture, may,
either at law or in equity, by suit, action, mandamus or other
proceedings protect and enforce any and all rights granted
hereunder or under such resolution or trust indenture and may
enforce and compel performance of all duties required by this
act or by such resolution or trust indenture to be performed by
the commission or any officer thereof, including the fixing,
charging and collecting of tolls for the use of the turnpike.
Section 18. (18 repealed Sept. 30, 1985, P.L.240, No.61)
Section 19. The foregoing sections of this act shall be
deemed to provide an additional and alternative method for the
doing of the things authorized thereby and shall be regarded as
supplemental and additional to powers conferred by other laws
and shall not be regarded as in derogation of any powers now
existing. Such sections, being necessary for the welfare of the
Commonwealth and its inhabitants, shall be liberally construed
to effect the purposes thereof.
Section 20. The provisions of this act are severable, and,
if any of its provisions shall be held unconstitutional by any
court of competent jurisdiction, the decision of such court
shall not affect or impair any of the remaining provisions. It
is hereby declared to be the legislative intent that this act
would have been adopted had such unconstitutional provisions not
been included therein.
Section 21. All acts and parts of acts inconsistent with
this act are hereby repealed.
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