Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 91 - Public-Private Transportation Partnerships
Section 9110 - Public-private transportation partnership agreement

(a) Agreement provisions.--A public-private transportation partnership agreement shall include the following provisions:
(1) A description of any planning, development, design, leasing, acquisition or interest in, financing, installation, construction, reconstruction, replacement, expansion, operation, maintenance, improvement, equipping, modification, expansion, enlargement, management, running, control and operation of the public-private transportation project.
(2) The term of the public-private transportation partnership agreement.
(3) The type of property interest or other relationship the development entity will have in or with respect to the public-private transportation partnership project, including acquisition of rights-of-way and other property interests that may be required.
(4) Authorization for the proprietary public entity or its authorized representatives to inspect all assets and properties of the public-private transportation project and all books and records of the development entity relating to the public-private transportation project to review the development entity's performance under the public-private transportation partnership agreement.
(5) Grounds for termination of the public-private transportation partnership agreement by the parties.
(6) Procedures for amendment of the public-private transportation partnership agreement.
(7) The rights and remedies available in the event of breach, default or delay.
(8) Requirements for a private development entity to provide performance and payment bonds, parent company guarantees, letters of credit or other acceptable forms of security in an amount acceptable to the proprietary public entity.
(9) A requirement that ownership of a transportation facility acquired or constructed go to or remain with the proprietary public entity.
(10) Standards for construction, maintenance and operation of the public-private transportation project if the activities are to be performed by the development entity.
(11) Standards for capital improvement or modification of the public-private transportation project if they are to be made by the development entity.
(12) Standards relating to how payments, if any, are to be made by the proprietary public entity to the development entity, including availability payments, performance-based payment and payments of money and revenue-sharing with the development entity.
(13) Standards relating to how the parties will allocate and share management of the risks of the public-private transportation project.
(14) Standards relating to how the parties will allocate costs of development of the public-private transportation project, including any cost overruns.
(15) Standards relating to damages to be assessed for nonperformance, specifying remedies available to the parties and dispute resolution procedures.
(16) Standards relating to performance criteria and incentives.
(17) A requirement that upon termination of the public-private transportation partnership agreement, a transportation facility that was the subject of the public-private transportation partnership agreement must be in a state of proper maintenance and repair and shall be returned to the proprietary public entity in satisfactory condition at no further cost to the proprietary public entity.
(18) Provisions for law enforcement related to the public-private transportation project.
(19) An obligation of the development entity to offer employment to any employee of the proprietary public entity who would lose employment due to the execution of the public-private transportation partnership agreement and who is in good standing at the time of execution of the public-private transportation partnership agreement, including salary, retirement, health and welfare and benefits which are substantially identical to the benefits received by the employees immediately prior to execution of the public-private transportation partnership agreement for the term of the collective bargaining agreement of those employees in effect. An employee of the proprietary public entity who does not accept employment with the development entity shall be reassigned to an equivalent position, without loss of seniority, within a worksite in as close proximity to the public-private transportation project as feasible. Nothing in this paragraph shall impair provisions related to furloughs and layoffs of the collective bargaining agreement of those employees in effect.
(20) Other terms and provisions as required under this chapter or agreed to by the development entity and the proprietary public entity.
(b) Term.--The proprietary public entity may enter into a public-private transportation partnership agreement with any development entity that includes the provisions under subsection (a) for a term not to exceed 99 years.
(c) Public partner.--Nothing in this chapter shall prohibit the department from entering into a public-private transportation partnership agreement with another Commonwealth agency in accordance with this chapter.
(d) Public entity.--Nothing in this chapter shall prohibit a public entity from entering into a public-private transportation partnership agreement with one or more public entities in accordance with this chapter.
(e) Environmental costs.--
(1) A proprietary public entity may provide in a public-private transportation partnership agreement that it will pay or reimburse, on terms that it deems appropriate, the development entity for actual costs associated with necessary remediation for existing environmental contaminants located on, under or emanating from the real property associated with a public-private transportation project as of the date the development entity assumes responsibility for the public-private transportation project. If the public-private transportation partnership agreement provides for environmental remediation, the public-private transportation partnership agreement shall require that the proprietary public entity be given:
(i) Prompt notice of any claim against the proprietary public entity or a third party pertaining to the contaminants.
(ii) The right to elect to undertake the necessary remediation.
(iii) The right to participate in the defense of or response to any claim.
(iv) The right of prior approval before the development entity may settle any claim.
(2) No payment by a proprietary public entity under this section may be for anything other than actual costs incurred by a development entity to remediate the environmental contamination on, under or emanating from the real property associated with the public-private transportation project as of the date the development entity assumes responsibility for the public-private transportation project.
(f) Optional user fees.--A provision establishing whether optional user fees will be imposed for use of the public-private transportation project and the basis by which any optional user fees will be imposed and collected shall be determined in the public-private transportation partnership agreement. If an optional user fee is proposed as part of the public-private transportation project, a proprietary public entity shall include provisions in the agreement that authorize the collection of optional user fees, tolls, fares or similar charges, including provisions that:
(1) Specify technology to be used in the public-private transportation project.
(2) Establish circumstances under which the proprietary public entity may receive a share of revenues from the charges.
(3) Govern the enforcement of optional electronic tolls, including provisions for use of available technology.
(4) Establish payment collection standards, including provisions for enforcement of nonpayment and penalties.
(5) In the event an operator of a vehicle fails to pay the optional toll or user fee at any location on a public-private transportation project where optional tolls or user fees are collected by means of an electronic or other automated or remote form of collection, the collection provisions of section 8117 (relating to electronic toll collection) shall apply except that the development entity shall possess all of the rights, roles, limitations and responsibilities of the Pennsylvania Turnpike Commission.
(g) Amounts received under a public-private transportation partnership agreement.--The net proceeds received by the proprietary public entity under a public-private transportation partnership agreement shall be available exclusively to provide funding for transportation needs in this Commonwealth. The use of the proceeds or other revenues from the public-private transportation project shall comply with Federal or State law restricting or limiting the use of revenue from the public-private transportation project based on its public funding.
(July 11, 2022, P.L.1566, No.84, eff. imd.)

2022 Amendment. Act 84 amended subsec. (f).
Cross References. Section 9110 is referred to in sections 9105, 9117 of this title.