75 Pa.C.S. Ch. 95

in effect

75 Pa.C.S. § 9501 Definitions.

The following words and terms when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Act 3." The act of April 17, 1997 (P.L.6, No.3), entitled, "An act amending Titles 74 (Transportation) and 75 (Vehicles) of the Pennsylvania Consolidated Statutes, further providing for annual appropriation and computation of subsidy and for distribution of funding; providing for distribution of supplemental funding; further providing for use of funds distributed; providing for public transportation grants management accountability, for competitive procurement and for the Public Transportation Assistance Fund; further providing for period of registration, for duties of agents, for registration and other fees, for requirements for periodic inspection of vehicles, for limits on number of towed vehicles, for operation of certain combinations on interstate and other highways and for width and length of vehicles; providing for liquid fuels and fuels permits and bond or deposit of securities, for imposition of liquid fuels and fuels tax, for taxpayer, for distributor's report and payment of tax, for determination of tax, penalties and interest, for examination of records and equipment, for retention of records by distributors and dealers, for disposition and use of tax, for discontinuance or transfer of business, for suspension or revocation of permits, for lien of taxes, penalties and interest, for collection of unpaid taxes, for reports from common carriers, for violations and reward for detection of violations, for refunds, for diesel fuel importers and transporters, for prohibiting use of dyed diesel fuel, for disposition of fees, fines and forfeitures, for certified copies of records and for uncollectible checks; further providing for distribution of State highway maintenance funds and for standards and methodology for data collection; providing for dirt and gravel road maintenance; further providing for imposition of tax and additional tax; providing for tax on alternative fuels; further providing for disposition of tax revenue; making an appropriation; and making repeals." "Annual debt service payments." The annual debt service payments on the bonds issued under section 9511.2 (relating to special revenue bonds) and payable by the commission to the department as part of annual base payments as defined under section 8901 (relating to definitions). "Bond-related expenses." The term shall include all of the following: (1) Printing, publication or advertising expenses with respect to the sale and issuance of bonds. (2) Fees, expenses and costs of registrars. (3) Fees, expenses and costs of attorneys, accountants, feasibility consultants, computer programmers or other experts employed to aid in the sale and issuance of the bonds. (4) Other costs, fees and expenses incurred or reasonably related to the issuance and sale of the bonds including the funding of a debt service reserve fund. "Bond-related obligation." An agreement or contractual relationship between the Pennsylvania Turnpike Commission and: (1) a bank, trust company, insurance company, surety bonding company, pension fund or other financial institution providing increased credit on or security for the bonds or liquidity for secondary market transactions; or (2) the counter party to a swap agreement. "Commission." The Pennsylvania Turnpike Commission or any successor organization. "Cost of the department." The term includes the costs of all of the following: (1) Constructing, reconstructing, widening, expanding or extending the State highway and rural State highway system and connecting roads, tunnels and bridges. (2) Systems of public passenger transportation or portions of the systems, the placing of the systems in operation and the condemnation of property necessary for construction and operation of the systems. (3) Lands, property rights, rights-of-way, easements and franchises acquired, which are deemed necessary or convenient for the construction, reconstruction, widening, expanding or extending under paragraph (1) or (2). (4) Machinery and equipment, financing charges, interest prior to and during construction and for one year after completion of construction. (5) Any of the following: (i) Traffic estimates, engineering and legal expenses, plans, specifications, surveys and estimates of cost and of revenues. (ii) Other expenses necessary or incident to determining the feasibility or practicability of the enterprise. This subparagraph includes administrative and legal expenses. (iii) Other expenses as may be necessary or incident to the financing authorized under this chapter, the construction, reconstruction, widening, expanding or extending of the State highway and the rural State highway system and connecting roads, tunnels and bridges. (6) Any obligation or expense contracted for by the department, or with the United States or an agency of the United States, 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, reconstruction, widening, expanding or extending of the State highway and rural State highway system or any of the connecting roads, tunnels and bridges or the costs of the systems of public passenger transportation or portions of the systems. (7) Payment of any notes or other obligations if the notes or other obligations were issued for the payment of a cost of the department. "Design-build arrangement." A procurement or project delivery arrangement whereby a single entity, which may be a single contractor or a consortium comprised of multiple contractors, engineers and other subconsultants, is responsible for both the design and construction of a transportation project with a guaranteed completion date and guaranteed maximum price. "Pledged revenues." Annual debt service payments and revenues described in section 9511.11(b)(2) (relating to pledged revenues). "Regularly scheduled debt service." The scheduled payments due for principal and interest on bonds, without regard to any acceleration of the due date of such principal or interest by reason of mandatory or optional redemption or acceleration resulting from default or otherwise, other than an advancement of payment resulting from a mandatory sinking fund payment. "Rural State highway system." All roads and highways taken over by the Commonwealth as State highways under the provisions of the act of June 22, 1931 (P.L.594, No.203), referred to as the Township State Highway Law, and all other roads and highways specifically designated by the Secretary of Transportation as Rural State Highways. "State highway." All roads and highways taken over by the Commonwealth as State highways under the provisions of any statute other than the act of June 22, 1931 (P.L.594, No.203), referred to as the Township State Highway Law. Unless clearly intended, the term shall not include any street in any city, borough or incorporated town, even though the same may have been taken over as a State highway. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9501.

75 Pa.C.S. § 9502 Imposition of tax.

(a) General rule.-- (1) An "oil company franchise tax for highway maintenance and construction" which shall be an excise tax of 60 mills is hereby imposed upon all liquid fuels and fuels as defined and provided in Chapter 90 (relating to liquid fuels and fuels tax), and such tax shall be collected as provided in section 9004(b) (relating to imposition of tax, exemptions and deductions). Of the amount collected in fiscal year 2015-2016, and each fiscal year thereafter, $35,000,000 shall be deposited in the Multimodal Transportation Fund established under 74 Pa.C.S. § 2102 (relating to Multimodal Transportation Fund), to be expended in accordance with section 11 of Article VIII of the Constitution of Pennsylvania. (2) An additional 55 mills is hereby imposed on all liquid fuels and fuels as defined and provided in Chapter 90 and such tax shall also be collected as provided in section 9004(b), the proceeds of which shall be distributed as follows: (i) Forty-five percent to county maintenance districts for highway maintenance for fiscal year 2013-2014, 29% for fiscal year 2014-2015, 25% for fiscal year 2015-2016 and 19% for fiscal year 2016-2017 and each year thereafter. This allocation shall be made according to the formula provided in section 9102(b)(2) (relating to distribution of State highway maintenance funds). This allocation shall be made in addition to and not a replacement for amounts normally distributed to county maintenance districts under section 9102. (ii) Fourteen percent for highway capital projects for fiscal year 2013-2014, 30% for fiscal year 2014-2015, 34% for fiscal year 2015-2016 and 40% for fiscal year 2016-2017 and each year thereafter. Annually, until fiscal year 2023-2024, an amount equal to 15% of all appropriations to the department for highway and bridge capital programs shall be distributed at the discretion of the secretary from the amount distributed under this subparagraph. (iii) Thirteen percent for bridges. (iv) Two percent for bridges identified as county or forestry bridges. Distribution under this subparagraph shall be in the ratio of: (A) the square footage of deck areas, as reported as part of the National Bridge Inspection Standards Program, of a county's county-owned bridges; to (B) the total square footage of deck area, as reported as part of the National Bridge Inspection Standards Program, of all county-owned bridges in this Commonwealth. (v) Twelve percent for local roads pursuant to section 9511(c) (relating to basic allocation to municipalities). (vi) Fourteen percent for toll roads designated pursuant to the act of September 30, 1985 (P.L.240, No.61), known as the Turnpike Organization, Extension and Toll Road Conversion Act, to be appropriated under section 9511(h). (3) An additional 38.5 mills is hereby imposed upon all liquid fuels and fuels as defined and provided in Chapter 90, and such tax shall also be collected as provided in section 9004(b), the proceeds of which shall be deposited in The Motor License Fund and distributed as follows: (i) Twelve percent to municipalities on the basis of and subject to the provisions of the act of June 1, 1956 (1955 P.L.1944, No.655), referred to as the Liquid Fuels Tax Municipal Allocation Law, is appropriated. (ii) Sixty-eight percent to the department for distribution in accordance with section 9102(b)(2) for fiscal year 2013-2014; 49% for fiscal year 2014-2015 and 40% for each fiscal year thereafter. (iii) Twenty percent to the department for expanded highway and bridge maintenance for fiscal year 2013-2014; 39% for fiscal year 2014-2015 and 48% for each fiscal year thereafter to be distributed as follows: (A) Annually, 15% of the amount deposited in a fiscal year shall be distributed at the discretion of the secretary. (B) Any funds deposited but not distributed under clause (A) shall be distributed in accordance with the formula under section 9102(b)(2). (C) Temporary transfers of funds may be made between counties if required for project cash flow. (4) An additional 55 mills is hereby imposed upon all fuels as defined and provided in chapter 90 and such tax shall also be collected as provided in section 9004(b) upon such fuels, the proceeds of which shall be deposited in The Highway Bridge Improvement Restricted Account within the Motor License Fund and is hereby appropriated. (5) An additional 64 mills in calendar year 2014, 49 mills in calendar year 2015, 48 mills in calendar year 2016, 41 mills in calendar year 2017 and 39 mills in each calendar year thereafter, is imposed upon all liquid fuels and fuels as defined and provided in Chapter 90; and the tax shall also be collected as provided in section 9004(b) upon such fuels. The proceeds of the tax shall be deposited and distributed as follows: (i) Four and seventeen hundredths percent to the Liquid Fuels Tax Fund of the State Treasury. The money paid into that fund is specifically appropriated for the purposes set forth in section 9010 (relating to disposition and use of tax). (ii) Ninety-five and eighty-three hundredths percent to the Motor License Fund. This money is specifically appropriated for the same purposes for which money in the Motor License Fund is appropriated by law. Twenty percent of the money under this subparagraph shall be allocated to municipalities in accordance with section 9511(d). (b) Other taxes unaffected.--The tax imposed by this chapter is in addition to all other taxes imposed by this chapter or any other statute. (c) Preemption of local taxes.--The tax imposed by this chapter shall automatically preempt any like tax or any tax on the privilege of processing or refining any petroleum product taxable under this chapter or any other refined product of crude oil imposed by any political subdivision of this Commonwealth. This preemption shall not extend to any local, personal or real property tax of general application or to any tax imposed by the Commonwealth. (d) Proof of use for nontaxable purpose.--(Deleted by amendment). (e) Absence of proof of use for nontaxable purpose.--(Deleted by amendment). (f) Change to use for taxable purpose.--(Deleted by amendment). (g) Credit in absence of proof of nontaxable purpose.--(Deleted by amendment). (h) False information concerning product use.--(Deleted by amendment). (i) Election to be taxed as oil company.--(Deleted by amendment). (j) Limitation on collection of tax.--(Deleted by amendment). (k) Motor carriers road tax.--(Deleted by amendment). (Dec. 7, 1982, P.L.820, No.229, eff. imd.; Dec. 8, 1982, P.L.842, No.234, eff. imd.; July 22, 1983, P.L.122, No.32, eff. 15 days; July 13, 1987, P.L.303, No.56, eff. imd.; Aug. 5, 1991, P.L.238, No.26; Apr. 16, 1992, P.L.169, No.31, eff. 60 days; Apr. 17, 1997, P.L.6, No.3; Nov. 25, 2013, P.L.974, No.89) Amendment. Act 89 amended subsec. (a), effective immediately as to subsec. (a)(1), (2)(i) and (ii), (3), (4) and (5), and July 1, 2014, as to subsec. (a)(2)(iv). See the preamble to Act 89 in the appendix to this title for special provisions relating to legislative findings and declarations. 1997 Amendment. Act 3 amended subsec. (a) and deleted subsecs. (d), (e), (f), (g), (h), (i), (j) and (k), effective May 1, 1997, as to subsec. (a)(3), October 1, 1997, as to subsec. (a)(4) and July 1, 1997, as to the remainder of subsec. (a) and subsecs. (d), (e), (f), (g), (h), (i), (j) and (k). 1982 Amendments. Acts 229 and 234 amended subsecs. (b) and (g), retroactive to July 1, 1981. The amendments by Acts 229 and 234 are identical and therefore have been merged. References in Text. The act of September 30, 1985 (P.L.240, No.61), known as the Turnpike Organization, Extension and Toll Road Conversion Act, was repealed by the act of July 18, 2007 (P.L.169, No.44). Cross References. Section 9502 is referred to in sections 9002, 9003, 9006, 9010, 9013, 9014, 9017, 9024, 9101, 9106, 9511, 9511.11, 9805 of this title; section 2104 of Title 74 (Transportation).

75 Pa.C.S. § 9503 Reports and payment of tax (Repealed).

1997 Repeal. Section 9503 was repealed April 17, 1997, P.L.6, No.3, effective July 1, 1997.

75 Pa.C.S. § 9504 Timely mailing treated as timely filing and payment (Repealed).

1997 Repeal. Section 9504 was repealed April 17, 1997, P.L.6, No.3, effective July 1, 1997.

75 Pa.C.S. § 9505 Extension of time to file reports (Repealed).

1997 Repeal. Section 9505 was repealed April 17, 1997, P.L.6, No.3, effective July 1, 1997.

75 Pa.C.S. § 9506 Administration and enforcement (Repealed).

1997 Repeal. Section 9506 was repealed April 17, 1997, P.L.6, No.3, effective July 1, 1997.

75 Pa.C.S. § 9507 Interstate cooperation in collecting tax (Repealed).

1997 Repeal. Section 9507 was repealed April 17, 1997, P.L.6, No.3, effective July 1, 1997.

75 Pa.C.S. § 9508 Assessment and appeals (Repealed).

1997 Repeal. Section 9508 was repealed April 17, 1997, P.L.6, No.3, effective July 1, 1997.

75 Pa.C.S. § 9509 Retention of records (Repealed).

1997 Repeal. Section 9509 was repealed April 17, 1997, P.L.6, No.3, effective July 1, 1997.

75 Pa.C.S. § 9510 Penalties (Repealed).

1997 Repeal. Section 9510 was repealed April 17, 1997, P.L.6, No.3, effective July 1, 1997.

75 Pa.C.S. § 9511 Allocation of proceeds.

(a) Deposit in Motor License Fund.--Unless otherwise provided in this title, all taxes, interest and penalties imposed by this chapter shall be deposited in the Motor License Fund. (b) State Highway Transfer Restoration Restricted Account and local bridges.-- (1) The amount of the proceeds deposited in the Motor License Fund pursuant to this chapter which is attributable to three mills of the tax imposed under section 9502(a) (relating to imposition of tax) shall be deposited as follows: (i) For fiscal year 2013-2014 through fiscal year 2016-2017, as follows: (A) Twenty-seven million dollars shall be deposited in the State Highway Transfer Restoration Restricted Account within the Motor License Fund. The funds deposited in the State Highway Transfer Restoration Restricted Account shall be appropriated annually for expenditure as provided under subsection (g). (B) All funds not deposited in accordance with clause (A) shall be deposited in the Highway Bridge Improvement Restricted Account within the Motor License Fund for local bridges, notwithstanding if the project is administered by a county, municipality or the department. (ii) For fiscal year 2017-2018 and each fiscal year thereafter, as follows: (A) One and one-half mill shall be deposited in the State Highway Transfer Restoration Restricted Account within the Motor License Fund, which account is hereby created. The funds deposited in the State Highway Transfer Restoration Restricted Account are hereby annually appropriated out of the account upon authorization by the Governor for expenditure as provided in subsection (g). (B) One and one-half mill shall be deposited in the Highway Bridge Improvement Restricted Account within the Motor License Fund for local bridges, notwithstanding if the project is administered by a county, municipality or the department. (2) If funds are available to make payments under subsection (g)(1), the department may transfer funds deposited under paragraph (1)(i) and (ii) between the State Highway Transfer Restoration Restricted Account and the Highway Bridge Improvement Restricted Account at the discretion of the secretary. (c) Basic allocation to municipalities.--An amount equal to 20% of the proceeds deposited in the Motor License Fund pursuant to the "oil company franchise tax for highway maintenance and construction" which is attributable to 35 mills of the tax imposed under section 9502(a) is hereby appropriated out of the Motor License Fund to municipalities of this Commonwealth on the basis of and subject to the provisions of the act of June 1, 1956 (1955 P.L.1944, No.655), referred to as the Liquid Fuels Tax Municipal Allocation Law. (d) Additional allocation to municipalities.--In addition, an amount is hereby appropriated out of the Motor License Fund to municipalities of this Commonwealth on the basis of and subject to the provisions of the act of June 1, 1956 (1955 P.L.1944, No.655), referred to as the Liquid Fuels Tax Municipal Allocation Law, equal to the amount that would be necessary to increase the portion of the liquid fuels and fuel use taxes distributed by such act to 20% of that which is deposited in the Motor License Fund from all liquid fuels and fuel use taxes. (e) Allocation to cities of the first class.--In addition, an amount is hereby appropriated annually out of the Motor License Fund to cities of the first class equal to the difference between the increased amounts allocated to cities of the first class resulting from subsections (c) and (d) and 2% of oil company wholesale revenues from sales of gasoline delivered to retail outlets in cities of the first class, as determined by the Pennsylvania Secretary of Revenue in developing the official revenue estimate for the "oil company franchise tax for highway maintenance and construction." Such funds shall be used exclusively for maintenance, construction or reconstruction of highways and bridges within cities of the first class. (e.1) Allocation for traffic signals.--In addition, up to $10,000,000 for fiscal year 2014-2015, up to $25,000,000 for fiscal year 2015-2016 and up to $40,000,000 for fiscal year 2016-2017 and each fiscal year thereafter, is appropriated out of the Motor License Fund to replace, synchronize, time, operate and maintain traffic signals within traffic corridors consistent with 74 Pa.C.S. Ch. 92 (relating to traffic signals). The funds shall be used for municipal and department-managed signals and allocated in accordance with the following: (1) During fiscal year 2014-2015, up to $10,000,000 is allocated to municipalities for upgrading traffic signals to light-emitting diode technology and for performing regional operations such as retiming, developing special event plans and monitoring traffic signals. (2) During fiscal year 2015-2016, up to $25,000,000 shall be allocated to municipalities for upgrading traffic signals to light-emitting diode technology, performing regional operations such as retiming, developing special event plans and monitoring traffic signals and for maintaining and operating traffic signals. (3) During fiscal year 2016-2017 and each fiscal year thereafter, up to $40,000,000 shall be allocated for upgrading traffic signals to light-emitting diode technology and intelligent transportation system applications, such as autonomous and connected vehicle-related technology, performing regional operations such as retiming, developing special event plans and monitoring traffic signals and for maintaining and operating traffic signals. (4) Financial assistance under this section shall be matched by funding in an amount not less than 20% of the amount of the financial assistance being provided. Except for transportation improvement program funds, the match may consist of any combination of Federal, State, regional, local and private funds, including in-kind contributions such as an exchange of services between the department and municipality. Any grant made under this subsection shall be allocated for two consecutive fiscal years and shall not lapse at the end of the fiscal year when the grant was awarded. (5) The department shall establish guidelines for applications and approval of applications from municipalities or metropolitan or rural planning organizations for the financial assistance being provided. Applicants must enter into agreements provided for under 74 Pa.C.S. Ch. 92. Priority will be given to multimunicipal improvements. (f) Basic allocation to highway maintenance.--An amount equal to the proceeds of 23 mills of the "oil company franchise tax for highway maintenance and construction" for the fiscal year 1983-1984 shall be dedicated to the maintenance of any State highways and shall be in addition to any funds currently dedicated to the maintenance of any State highways. For fiscal year 1984-1985 and thereafter, an amount equal to the proceeds of 22 mills of the "oil company franchise tax for highway maintenance and construction" shall be dedicated to the maintenance of any State highway and shall be in addition to any funds currently dedicated to the maintenance of any State highways. (g) Use of funds in the State Highway Transfer Restoration Restricted Account.--The funds appropriated in subsection (b) for deposit in the State Highway Transfer Restoration Restricted Account shall be used to pay for the costs of restoration of such highways as provided in Chapter 92 (relating to transfer of State highways) and annual payments to the municipalities for highway maintenance in accordance with the following: (1) Annual maintenance payments shall be at the rate of $4,000 per mile for each highway or portion of highway transferred under Chapter 92, section 222 of the act of June 1, 1945 (P.L.1242, No.428), known as the State Highway Law, or any statute enacted in 1981. (2) Annual maintenance payments shall be paid at the same time as funds appropriated under the act of June 1, 1956 (1955 P.L.1944, No.655), referred to as the Liquid Fuels Tax Municipal Allocation Law, except that no maintenance payment shall be paid for a highway until after the year following its transfer to the municipality. (3) Annual maintenance payments under this subsection shall be in lieu of annual payments under the Liquid Fuels Tax Municipal Allocation Law. (4) Annual maintenance payments under this subsection shall be deposited into the municipality's liquid fuels tax account and may be used on any streets and highways in the municipality in the same manner and subject to the same restrictions as liquid fuels tax funds paid under the Liquid Fuels Tax Municipal Allocation Law or, in the case of a county, under section 10 of the act of May 21, 1931 (P.L.149, No.105), known as The Liquid Fuels Tax Act. (h) Allocation to Pennsylvania Turnpike Commission.--An amount equal to 14% of the proceeds deposited in the Motor License Fund pursuant to the "oil company franchise tax for highway maintenance and construction" imposed under section 9502(a)(2), which amount is to be distributed under section 9502(a)(2)(vi) for toll roads designated under the act of September 30, 1985 (P.L.240, No.61), known as the Turnpike Organization, Extension and Toll Road Conversion Act, is hereby appropriated monthly to the Pennsylvania Turnpike Commission. The Commonwealth does hereby pledge to and agree with any person, firm or corporation acquiring any bonds to be issued by the Pennsylvania Turnpike Commission and secured in whole or in part by a pledge of the portion of the tax known as the "oil company franchise tax for highway maintenance and construction" which is imposed by section 9502(a)(2) and distributed in the manner indicated in that section, including 14% for toll roads designated under the Turnpike Organization, Extension and Toll Road Conversion Act, that the Commonwealth will not limit or alter the rights vested in the Pennsylvania Turnpike Commission to the appropriation and distribution of such tax revenues. (i) Refund to Pennsylvania Fish and Boat Commission.-- (1) When the tax imposed by section 9502(a)(1), (2), (3) and (4) has been paid and the fuel on which the tax has been imposed has been consumed in the operation of motorboats or watercraft upon the waters of this Commonwealth, including waterways bordering this Commonwealth, the full amount of the tax shall be refunded to the Boat Fund on petition to the Board of Finance and Revenue in accordance with prescribed procedures. (2) In accordance with the procedures, the Pennsylvania Fish and Boat Commission shall biannually calculate the amount of liquid fuels consumed by the motorcraft and furnish the information relating to its calculations and data as required by the Board of Finance and Revenue. The Board of Finance and Revenue shall review the petition and motorboat fuel consumption calculations of the commission, determine the amount of the oil company franchise tax paid and certify to the State Treasurer to refund annually to the Boat Fund the amount so determined. The department shall be accorded the right to appear at the proceedings and make its views known. (3) For the fiscal years commencing July 1, 2013, July 1, 2014, July 1, 2015, July 1, 2016, and July 1, 2017, the money under paragraph (2) shall be used by the commission acting by itself or by agreement with other Federal and State agencies only for the improvement of hazardous dams impounding waters of this Commonwealth on which boating is permitted, including the development and construction of boating areas and the dredging and clearing of water areas where boats can be used. The commission shall present its plan no later than September 30 of each year through September 30, 2017, to the chairman and minority chairman of the Transportation Committee and the chairman and minority chairman of the Game and Fisheries Committee of the Senate and the chairman and minority chairman of the Transportation Committee and the chairman and minority chairman of the Game and Fisheries Committee of the House of Representatives regarding the use of the funds. For the fiscal year commencing July 1, 2018, and for each fiscal year thereafter, this money shall be used by the commission acting by itself or by agreement with other Federal and State agencies only for the improvement of the waters of this Commonwealth on which motorboats are permitted to operate and may be used for the development and construction of motorboat areas; the dredging and clearing of water areas where motorboats can be used; the placement and replacement of navigational aids; the purchase, development and maintenance of public access sites and facilities to and on waters where motorboating is permitted; the patrolling of motorboating waters; the publishing of nautical charts in those areas of this Commonwealth not covered by nautical charts published by the United States Coast and Geodetic Survey or the United States Army Corps of Engineers and the administrative expenses arising out of the activities; and other similar purposes. (July 22, 1983, P.L.122, No.32, eff. 15 days; July 10, 1984, P.L.704, No.148, eff. imd.; Apr. 16, 1992, P.L.169, No.31, eff. 60 days; July 2, 1993, P.L.408, No.58, eff. imd.; Feb. 10, 1994, P.L.20, No.3, eff. 60 days; July 7, 2006, P.L.341, No.70, eff. 60 days; Nov. 25, 2013, P.L.974, No.89, eff. 60 days; July 20, 2016, P.L.861, No.101, eff. 60 days) 2016 Amendment. Act 101 amended subsec. (e.1). Amendment. Act 89 amended subsecs. (b) and (g) and added subsecs (e.1) and (i). See the preamble to Act 89 in the appendix to this title for special provisions relating to legislative findings and declarations. 1994 Amendment. Act 3 amended subsec. (h). The amendment by Act 3 is identical to the amendment by Act 58 of 1993 and therefore the text has been merged. 1993 Amendment. See section 10 of Act 58 in the appendix to this title for special provisions relating to use of Motor License Fund appropriations. 1992 Amendment. Act 31 amended subsec. (a) and added subsec. (h). 1983 Amendment. Act 32 amended and relettered former subsec. (b) to subsec. (c), relettered former subsec. (c) to subsec. (d), amended and relettered former subsec. (d) to subsec. (e) and added present subsec. (b) and subsecs. (f) and (g). References in Text. The act of May 21, 1931 (P.L.149, No.105), known as The Liquid Fuels Tax Act, referred to in subsec. (g), was repealed by the act of April 17, 1997 (P.L.6, No.3). The subject matter is now contained in Chapter 90 of this title. The act of September 30, 1985 (P.L.240, No.61), known as the Turnpike Organization, Extension and Toll Road Conversion Act, was repealed by the act of July 18, 2007 (P.L.169, No.44). Cross References. Section 9511 is referred to in sections 9024, 9502, 9511.11 of this title.

75 Pa.C.S. § 9511.1 Imposition of additional tax (Repealed).

1997 Repeal. Section 9511.1 was repealed April 17, 1997, P.L.6, No.3, effective July 1, 1997.

75 Pa.C.S. § 9511.2 Special revenue bonds.

(a) Payment source.--A special revenue bond, note or other obligation issued under this chapter: (1) shall not be deemed to be a debt or liability of the Commonwealth; (2) shall not create or constitute any indebtedness, liability or obligation of the Commonwealth; and (3) shall be payable solely from pledged revenues. (b) Statement.--A special revenue bond, note or other obligation issued under this chapter must contain a statement on its face that: (1) the Commonwealth is not obligated to pay the bond, note or obligation or the interest on it except from pledged revenues; and (2) neither the faith and credit, nor the taxing power of the Commonwealth is pledged to the payment of the principal or interest of the bond, note or obligation. (c) Taxation.--The issuance of a special revenue bond, note or other obligation under this chapter shall not directly, indirectly or contingently obligate the Commonwealth to levy a tax or to make an appropriation for payment. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.2. Cross References. Section 9511.2 is referred to in sections 8901, 9501, 9511.11 of this title.

75 Pa.C.S. § 9511.3 Expenses.

(a) Reimbursement.--The commission shall be reimbursed from bond proceeds for the necessary and documented reasonable expenses incurred in the performance of the duties performed under the provisions of this chapter. (b) Source.--All expenses incurred in carrying out the provisions of this chapter shall be paid solely from funds provided under the authority of this chapter, and sufficient funds shall be provided under the authority of this chapter to meet any liability or obligation incurred in carrying out the provisions of this chapter. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.3.

75 Pa.C.S. § 9511.4 Special revenue bonds and preliminary or interim financing.

(a) Authorization.--The commission is authorized to provide, by resolution, for the issuance of special revenue bonds of the commission up to an aggregate principal amount not exceeding $5,000,000,000, exclusive of original issue discount, for the purpose of paying the cost of the department and bond-related expenses. The resolution must recite an estimate of the cost of the department. No more than $600,000,000 in aggregate principal amount of special revenue bonds, exclusive of original issue discount, may be issued in any calendar year. No bond may be issued and outstanding under this section unless the lease agreement authorized under section 8915.3 (relating to lease of Interstate 80; related agreements) is in effect as of the date of issuance. No bond may be outstanding beyond the term of the lease. Special revenue refunding bonds as set forth in section 9511.9 (relating to special revenue refunding bonds) shall not be deemed to count against the total or annual maximum issuance volume. The principal and interest of the bond shall be payable solely from pledged revenues. (b) Form.-- (1) A bond may be issued in registered form. (2) A bond: (i) must be dated; (ii) must bear interest at a rate not exceeding the rate permitted under applicable law; (iii) must be payable semiannually or at other times as set forth in the resolution of the commission authorizing the issuance of the bonds; (iv) must mature, as determined by the commission, no later than 40 years from the date of the bond; and (v) may be made redeemable before maturity, at the option of the commission, at a price and under terms and conditions fixed by the commission prior to the issuance of the bonds. (c) Issuance.-- (1) The commission may sell bonds at public or private sale and for a price it determines to be in the best interest of the Commonwealth. (2) Bonds may be issued in series with varying provisions as to all of the following: (i) Rates of interest, which may be fixed or variable. (ii) Other provisions not inconsistent with this chapter. (d) (Reserved). (e) Payment.-- (1) The principal and interest of the bonds may be made payable in any lawful medium. (2) The commission shall: (i) determine the form of bonds; and (ii) fix: (A) the denomination of the bond; and (B) the place of payment of principal and interest of the bond, which may be at any bank or trust company within or without this Commonwealth. (f) Signature.--The bond must bear the manual or facsimile signature of the Governor and of the chairman of the commission. The official seal of the commission or a facsimile of the official seal shall be affixed to or printed on the bond and attested by the secretary and treasurer of the commission. If an officer whose signature or facsimile of a signature appears on a bond ceases to be an officer before the delivery of the bond, the signature or facsimile shall nevertheless be valid and sufficient for all purposes as if the officer remained in office until delivery. (g) Negotiability.--A special revenue bond issued under this chapter shall have all the qualities and incidents of a negotiable instrument under 13 Pa.C.S. Div. 3 (relating to negotiable instruments). (h) Proceeds.--The proceeds of a bond shall be used solely for the following: (1) Payment of the cost of the department. (2) Bond-related expenses. (i) Temporary bonds.--Prior to the preparation of definitive bonds, the commission may, under similar provisions as those applicable to the definitive bonds, issue temporary bonds, exchangeable for definitive bonds upon the issuance of definitive bonds. (j) (Reserved). (k) Status as securities.-- (1) A bond is made a security in which any of the following may properly and legally invest funds, including capital, belonging to them or within their control: (i) Commonwealth and municipal officers. (ii) Commonwealth agencies. (iii) Banks, bankers, savings banks, trust companies, saving and loan associations, investment companies and other persons carrying on a banking business. (iv) Insurance companies, insurance associations and other persons carrying on an insurance business. (v) Fiduciaries. (vi) Other persons that are authorized to invest in bonds or other obligations of the Commonwealth. (2) A bond is made a security which may properly and legally be deposited with and received by a Commonwealth or municipal officer or a Commonwealth agency for any purpose for which the deposit of bonds or other obligations of the Commonwealth is authorized by law. (l) Borrowing.--The following shall apply: (1) The commission is authorized to do all of the following: (i) Borrow money at an interest rate not exceeding the rate permitted by law. (ii) Provide for preliminary or interim financing up to, but not exceeding, the estimated total cost of the department and bond-related expenses and to evidence the borrowing by the issuance of special revenue notes and, in its discretion, to pledge as collateral for the note or other obligation a special revenue bond issued under the provisions of this chapter. The commission may renew the note or obligation, and the payment or retirement of the note or obligation shall be considered to be payment of the cost of the project. (2) A note or obligation issued under this subsection must contain a statement on its face that: (i) the Commonwealth is not obligated to pay the note or obligation or interest on it, except from pledged revenues; and (ii) neither the faith and credit nor the taxing power of the Commonwealth is pledged to the payment of its principal or interest. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.4.

75 Pa.C.S. § 9511.5 Application of proceeds of obligations, lien of holders of obligations, design-build requirement and projects approved by General Assembly.

(a) Application.--The following shall apply: (1) All proceeds received from any bonds, notes or other obligations issued under this chapter shall be applied solely to the payment of: (i) the cost of the department; and (ii) bond-related expenses. (2) The commission may provide by resolution that until proceeds received from any bonds, notes or other obligations issued under this chapter is applied under paragraph (1), a lien shall exist upon the proceeds in favor of holders of the bonds, notes or other obligations or a trustee provided for in respect to the bonds, notes or other obligations. (b) Design-build arrangements.-- (1) To facilitate the timely completion of projects to be financed by the department with bond proceeds, the department may utilize design-build arrangements for each project to be financed with bond proceeds if the project value is estimated by the department to exceed $100,000,000. (2) Notwithstanding the provisions of any other law, the department may utilize design-build arrangements for the following: (i) projects to be financed by the department with bond proceeds for projects estimated by the department to have a value of $100,000,000 or less; and (ii) all other construction projects of the department not included under subparagraph (i) or paragraph (1). (3) The selection of the party for a design-build arrangement under this subsection must be conducted in a manner consistent with the procurement and public bidding laws applicable to the department. (c) Capital projects.--All projects financed by the department with bond proceeds shall be included in any submission the department is already required to make to the General Assembly with respect to the expenditure of funds for highway projects. (d) Investment.--Pending the application of proceeds to cost of the department and bond-related expenses, the commission may invest the funds in permitted investments as defined under any trust indenture. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.5.

75 Pa.C.S. § 9511.6 Trust indenture, protection of holders of obligations and depositories.

(a) Indenture.--In the discretion of the commission, a bond, note or other obligation 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 without this Commonwealth. (b) Pledge or assignment.--A trust indenture under subsection (a) may pledge or assign the pledged revenues but shall not convey or mortgage the turnpike or any part of the turnpike. (c) Rights and remedies.--The resolution providing for the issuance of the bond, note or other obligation of the trust indenture may contain provisions for protecting and enforcing the rights and remedies of the bondholders or holders of notes or other obligations as may be reasonable and proper and not in violation of law. (d) Depository.--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 bond, note or other obligation or revenue, to furnish indemnity bonds or to pledge securities as may be required by the commission. (e) Indenture.--The trust indenture may set forth the rights and remedies of the bondholders or holders of notes or other obligations and of the trustee and may restrict the individual right of action of bondholders or holders of notes or other obligations as is customary in trust indentures securing bonds, debentures of corporations, notes or other obligations. The trust indenture may contain other provisions as the commission may deem reasonable and proper for the security of bondholders or holders of notes or other obligations. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.6.

75 Pa.C.S. § 9511.7 Exemption from Commonwealth taxation.

The effectuation of the purposes of this chapter is for the benefit of the citizens of this Commonwealth and for the improvement of their commerce and prosperity. Since the commission will be performing essential government functions in effectuating these purposes, the commission shall not be required to pay any tax or assessment on any property acquired or used by it for the purposes provided under this chapter. A bond, note or other obligation issued by the commission, its transfer and the income from its issuance and transfer, including any profits made on the sale of the bond, note or other obligation, shall be free from taxation within the Commonwealth. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.7.

75 Pa.C.S. § 9511.8 Costs related to Federal income tax matters.

Tax matter costs incurred by the commission in connection with any proceeding of or filing with the Internal Revenue Service concerning the use of proceeds of bonds issued under this chapter shall be paid or reimbursed from available funds in the motor license fund. Tax matter costs shall include all of the following: (1) Fees of tax counsel or arbitrage rebate calculation providers. (2) Arbitrage rebate payments to the extent not properly payable from funds held under the bond indenture. (3) Settlement payments to the Internal Revenue Service, either in relation to an examination initiated by the Internal Revenue Service or a closing agreement requested by the commission. (4) Payments to bondholders as a result of claims based on pending, threatened or actual assessments of tax, interest or penalties by the Internal Revenue Service. (5) Any other cost reasonably related to a proceeding by or filing with the Internal Revenue Service concerning the use of proceeds of the bonds. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.8.

75 Pa.C.S. § 9511.9 Special revenue refunding bonds.

The commission is authorized to provide, by resolution, for the issuance of special revenue refunding bonds of the commission for the purpose of refunding any special revenue bonds, notes or other obligations issued under the provisions of this chapter and then outstanding. The issuance of the special revenue refunding bonds, the maturities and other details of the bonds, the rights of the holders of the bonds and the duties of the department and of the commission with respect to the bonds shall be governed by the provisions of this chapter. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.9. Cross References. Section 9511.9 is referred to in section 9511.4 of this title.

75 Pa.C.S. § 9511.10 Remedies of trustees and of holders of obligations.

(a) Grant of rights.--A holder of a bond, note or other obligation issued under this chapter and the trustee under the trust indenture may, either at law or in equity, by suit, action, mandamus or other proceeding, do all of the following: (1) Protect and enforce any right granted under this chapter or under the resolution or trust indenture. (2) Enforce and compel performance of all duties required under this chapter or by resolution or trust indenture to be performed by the commission or any of its officers, including the collection of the pledged revenues. (b) Exception.--Rights given under this chapter may be restricted by resolution passed before the issuance of the bonds, notes or other obligations or by the trust indenture. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.10.

75 Pa.C.S. § 9511.11 Pledged revenues.

(a) Annual debt service payments.--Upon receipt by the department of the annual debt service payments, the department shall pay them to the trustee for the holders of the bonds issued under section 9511.2 (relating to special revenue bonds). (b) Payment default.-- (1) The department shall notify the State Treasurer if the department receives a notice from the trustee which: (i) indicates that a default in the payment by the commission on its regularly scheduled deposits with respect to debt service on the bonds has occurred; and (ii) indicates the amount required to remedy the default. (2) Upon notice under paragraph (1), the State Treasurer shall do all of the following: (i) Notwithstanding section 9010 (relating to disposition and use of tax), transfer to the trustee from funds in the Motor License Fund as a result of the imposition of the tax under section 9004(a) (relating to imposition of tax, exemptions and deductions) the amount necessary to remedy the default under paragraph (1)(ii). (ii) If funds in the Motor License Fund as a result of the imposition of the tax under section 9004(a) are not sufficient to remedy the default under paragraph (1)(ii) and notwithstanding section 9511 (relating to allocation of proceeds), transfer to the trustee from funds in the Motor License Fund as a result of the imposition of the tax under section 9502(a)(1), (2)(i), (ii), (iii) and (iv) and (3)(ii) (relating to imposition of tax), an amount necessary, when combined with any funds transferred under subparagraph (i), to remedy the default. (iii) If funds in the Motor License Fund as a result of the imposition of the tax under sections 9004(a) and 9502(a)(1), (2)(i), (ii), (iii) and (iv) and (3)(ii) are not sufficient to remedy the default under paragraph (1)(ii) and notwithstanding the provisions of section 20 of Act 3, transfer to the trustee from funds in the Motor License Fund as a result of the imposition of fees specified under sections 1912 (relating to passenger cars), 1913 (relating to motor homes), 1914 (relating to motorcycles), 1915 (relating to motor-driven cycles), 1916 (relating to trucks and truck tractors), 1917 (relating to motor buses and limousines), 1921 (relating to special mobile equipment), 1922 (relating to implements of husbandry), 1923 (relating to antique, classic and collectible vehicles), 1924 (relating to farm vehicles), 1925 (relating to ambulances, taxis and hearses), 1926 (relating to dealers and miscellaneous motor vehicle business), 1926.1 (relating to farm equipment vehicle dealers), 1927 (relating to transfer of registration), 1929 (relating to replacement registration plates), 1932 (relating to duplicate registration cards), 1933 (relating to commercial implements of husbandry) and 1952 (relating to certificate of title), net of amounts appropriated to the commission under section 20 of Act 3, an amount necessary, when combined with funds transferred under subparagraphs (i) and (ii), to remedy the default. (c) Commonwealth pledge.--This subsection shall operate as a pledge by the Commonwealth to an individual or entity that acquires a bond issued by the commission under section 9511.2: (1) to secure the portion of the money described under this section and distributed under this section; and (2) to not limit or alter the rights vested in the commission or the trustee for the bonds to the appropriation and distribution of money set forth under this section. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.11. Cross References. Section 9511.11 is referred to in section 9501 of this title.

75 Pa.C.S. § 9511.12 (Reserved).

(July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.12 (Reserved).

75 Pa.C.S. § 9511.13 Supplement to other laws and liberal construction.

This chapter shall be regarded as supplemental and additional to powers conferred by other statutes and shall not be regarded as in derogation of any powers existing on the effective date of this section. The provisions of this chapter, being necessary for the welfare of the Commonwealth and its citizens, shall be liberally construed to effect the purposes of this chapter. (July 18, 2007, P.L.169, No.44, eff. imd.) 2007 Amendment. Act 44 added section 9511.13.

75 Pa.C.S. § 9512 Severability of provisions.

If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of the chapter and the application of such provisions to other persons or circumstances shall not be affected thereby.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=75Fetched: 10/16/2026