CHAPTER 503

FORMERLY

HOUSE BILL NO. 1230

AS AMENDED BY HOUSE AMENDMENT NOS. 2 AND 3

AN ACT AMENDING TITLES 2, 3, 7, 9, 17, 21, 23 and 29 OF THE DELAWARE CODE PROVIDING FOR REORGANIZATION OF THE DEPARTMENT OF HIGHWAYS AND TRANSPORTATION AND MAKING AN APPROPRIATION FOR PRELIMINARY EXPENSES FOR THE NEW DEPARTMENT OF TRANSPORTATION FROM THE CAPITAL INVESTMENT FUND.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Amend Chapter 84, Title 29, Delaware

Code by striking the title thereof and substituting in lieu thereof the title "Department of Transportation", and by striking the words "Department of Highways and Transportation" wherever therein appearing and substituting in lieu thereof the words "Department of Transportation", and by striking the words "Division of Transportation" wherever therein appearing and substituting in lieu thereof the words "Transportation Authority".

Section 2. Amend Chapter 84, Title 29, Delaware

Code by deleting Section 8401 thereof and substituting in lieu thereof a new Section 8401 to read as follows:

"Section 8401. Establishment of Department.

(a) The Department of Transportation is hereby established. The Department through appropriate divisions, authorities, subdivisions, offices and administrations, shall have the power to perform and shall be responsible for the performance of all the powers, duties and functions vested by law in the Department of Highways and Transportation immediately prior to the effective date of this Act.

(b) The powers and duties of the Department of Transportation shall also include, but not limited to. the following activities:

(1) Coordinating and developing, in cooperation with the Federal government, other states, Delaware State Agencies, counties, cities, councils, and agencies, comprehensive balanced transportation planning and policy for the movement of people and goods within the State:

(2) To be the lead agency for establishing and maintaining the continuing, comprehensive, cooperative transportation planning process pursuant to the existing and future provisions of Title 23, U.S. Code and the Urban mass Transportation Act of 1964 as amended;

(0) To be the supervising and responsible planning staff for all urban and rural transportation studies and programs in the State and enter into any contracts, agreements and stipulations as required;

(0) To provide the necessary staffing, coordination and liaison required by present and future federal and state acts for transportation planning, programs, grant applications and required administration;

(1) Planning, designing, constructing, operating and maintaining those highway and public transportation systems under its jurisdiction;

(2) Preparing an annual transportation needs plan directed at the achievement of a coordinated and balanced transportation system for the state that is consistent with the state's social, economic and environmental needs and goals;

(3) Establishing, in cooperation with State Planning Office, a rating formula for setting priorities for highway and public transportation projects considering but not limited to the following criteria; sufficiency rating, economic factors,

continuity of improvement, social factors, aesthetic and environmental factors, safety factors, availability of funds. The rating formula shall be used for the development of priority recommendations for the planning, design and construction of state transportation projects."

Section 3. Amend Chapter 84, Title 29, Delaware

Code by deleting Section 8402 and substituting in lieu thereof a new Section 8402 to read as follows:

"Section 8402. Definitions.

As used in this Chapter:

(a) "Corridor Route" as used in this chapter means any existing or proposed road in an urban or rural area which is classified as part of the "principal arterial highway system" as defined in the National Highway Functional Classification Studies on record with the Department and which serves traffic corridor movements of substantial statewide or interstate travel and as to which the concept of service of abutting land is subordinate to the provisions of travel service to major traffic movements.

(b) "Department" means the Department of Transportation.

(c) "Authority" or "Transportation Authority" means Delaware Transportation Authority.

(d) "Director" means the Director of the Transportation Authority and/or the Director of the Division of Highways.

() "Division" means the Division of Highways.

Section 4. Amend Chapter 84, Title 29, Delaware

Code by deleting subparagraphs (2) (b) and (2) (c) of Section 8404 thereof and substituting in lieu thereof a new subparagraph (2) (b) to read as follows and renumbering subparagraph (d) thereof as subparagraph (c):

"(b) A director of the Transportation Authority who shall be qualified by training and experience to perform the duties of his office."

Section 5. Amend Chapter 84, Title 29, Delaware

Code by deleting paragraph (4) of Section 8404 thereof and substituting in lieu thereof a new paragraph (4) to read as follows:

"(4) To collect and analyze statistical and planning information on all modes of transportation and make studies required to carry out state transportation programs; to coordinate and develop, in cooperation with federal, state, county, and local governmental agencies, comprehensive balanced transportation planning, programming and policy for the movement of people and goods within the state; to prepare a statewide master transportation plan that is consistent with the state's social, economic and environmental needs and goals; to develop a unified intermodal transportation planning program in cooperation with State Planning Office and other planning agencies to fulfill the transportation planning requirements of the federal government;"

Section 6. Amend Chapter 84, Title 29, Delaware

code, by renumbering Sections 8411 through 8418 as Sections 8412 through 8419 respectively.

Section 7. Amend Chapter 84, Title 29, Delaware

Code, by deleting Sections 8407, 8408, 8409, and 8410 thereof and substituting the following:

"Section 8407. Transportation Authority.

The Transportation Authority is hereby established and shall have the power to perform and shall be responsbile for the performance of all the powers, duties, and functions heretofore vested in the Division of Transportation pursuant to Chapter 84, Title 29, unless otherwise transferred by this Chapter, as well as such other additional functions as are outlined in the Act. Solely for the purpose of carrying out the powers, duties, and authority contained in the provisions of this chapter, the status of the Authority shall be that of an independent, autonomous public entity and agency, in the nature of a specialized body politic, which is not subject to the supervision and regulation of any other department, commission, body or agency of this State, with the exception of the Department of Transportation and except to the extent and manner as provided by law. (17 Del. C. 1953, §603; 53 Del. Laws, c. 176.)

Section 8408. Director, Chiefs of Divisions; Acting Director; Appointment.

(a) The administrator and head of the Authority shall be the Director of the Transportation Authority who shall be a person qualified by training and experience to perform the duties of his office and preference shall be given to a resident of this State provided that the person is acceptable and equally qualified. The Director shall be appointed by the Secretary, with the advice and consent of the Governor, and shall serve at the pleasure of the Secretary. The Director shall be paid an annual salary not in excess of $33,500.

(b) In the event of death, resignation, temporary incapacity, removal or vacancy for whatever reason of the Director and prior to the appointment of his successor, the Secretary may appoint the chief of any administration and/or subdivision of the Authority to serve as Acting Director. The director may, during an absence from the State, appoint the chief of ally administration and/or subdivision of the Authority to serve as Acting Director during such absence. In either case, the Acting Director shall have all the powers and shall perform all the duties and functions of the

Director during such absence or incapacity or until a successor is duly qualified and appointed.

(c) The Director shall have the following powers, duties and functions:

(1) To supervise, direct, and account for the administration and operation of the Authority, its divisions, subdivisions, administrations, offices, and functions and employees;

(2) To appoint, and fix the salary of, with the written approval of the Secretary, the following chiefs of administration and office heads, who may be removed from office by the Director with the written approval of the Secretary and who shall have such powers, duties and functions in the administration and operation of the Authority as may be assigned by the Director with the written approval of the Secretary;

(a) A chief of the Turnpikes Administration who shall be known as the Chief of Turnpikes and who shall be qualified by training and experience to perform the duties of the Office.

b. Such other Chiefs as the Secretary may from time to time require to oversee the operations of such other administrations as may from time to time be created by the Secretary with the written approval of the Governor (except pursuant to Chapter 16 and Chapter 17 of Title 2, Delaware Code).

(0) To delegate any of the Director's powers, duties or functions with the written approval of the Secretary;

(1) To establish and to promulgate such rules and regulations governing the administration and operation of the Authority with the written approval of the Secretary as

may be deemed necessary and which are not inconsistent with the laws of this State;

(5) To maintain such facilities throughout the State as may be required for the effective and efficient operation of the Authority;

(6) To adopt an official seal or seals for the Authority;

(7) To perform such additional duties as the Secretary may delegate.

(d) The Aeronautics Administration is hereby established having powers, duties, and functions as follows:

(1) The Aeronautics Administration shall have the power to perform, and shall be responsbile for the performance of all the powers, duties, and functions heretofore vested in the Department of Highways and Transportation pursuant to Chapters 1, 3, 5, 7, and 9 of Title 2, Delaware Code.

(2) The Aeronautics Administration shall also have the power to perform and shall be responsible for the performance of any other functions as delegated by the Director of the Authority with the written approval of the Secretary.

(e) The Turnpike Administration is hereby established having powers, duties, and functions as follows:

(1) The Turnpikes Administration shall be responsible for operations and maintenance of the Delaware Turnpike;

(2) The Turnpikes Administration shall also have the power to perform and shall be responsible for the performance of any other functions as delegated by the Director of the Authority with the written approval of the Secretary.

(f) When created, a local transportation authority shall be a subdivision of this State pursuant to Chapter 16 of Title 2, exercising public powers and having all powers necessary and convenient to carry out and effectuate the provisions of Chapter 16, Title 2, and providing a public mass transportation system within its area of operations.

(g) When created a specialized transit administration shall be a subdivision of this State pursuant to Chapter 17 of Title 2, exercising public powers and having all powers necessary or convenient to carry out and effectuate the provisions of Chapter 17, Title 2, and providing specialized transportation services within its area of operations.

Section 8409. Council on Transportation.

(a) There is established a Council on Transportation.

(b) The Council on Transportation shall serve in an advisory capacity, except as otherwise provided, to the Director of Highways, to the Director of the Transportation Authority, to the Secretary, and the Governor, and shall:

(1) Consider matters relating to transportation in the State and other matters such as the budget and capital improvements programs which may be referred to it by the Governor or the Secretary of the Department.

(0) Study, research, plan, and advise on matters it deems appropriate to enable the Department to function in the best possible manner.

(1) Have final approval of and to adopt the six year highway improvement program, which shall be submitted annually to the Council by the Department;

(2) Have final approval of and to adopt all corridor route projects in connection with new road alignments,

which projects shall be submitted to the Council by the Department.

(c) The Council shall adopt all motions and approve all projects only by a majority vote of the entire membership of the Council. All voting under this provisions shall be done in person and at regular or special meetings of the Council. If the Council, for any reason, shall fail to approve and to adopt in writing within a reasonable period of time after receipt of this programs or projects referred to in subsection (b) (3) and (4) of this section, the Secretary of the Department may, with the approval of the Governor, upon 40 days prior written notice to the Chairman of the Council, give final approval to said programs or projects notwithstanding the absence of the Council's written comments.

(d) The Council shall organize itself into two subcouncils. The Chairperson of the Council on Transportation shall be designated by the Governor to serve at his pleasure. The Chairperson shall designate from the Council a Vice Chairperson for Highways and a Vice Chairperson for the Transportation Authority. The Chairperson and the two Vice Chairpersons shall designate the remaining membership to serve on one of the two Subcouncils. The Subcouncil on Highways shall have primary responsibility for considering matters related to the Division of Highways, and shall have final approval of and responsibility to adopt all corridor route projects in connection with new road alignments. The Subcouncil on the Transportation Authority shall have as primary responsibility matters related to the Transportation Authority including the fixing of turnpike tolls and the fares, schedules and services of the transit administrations.

"(e) The initial membership of the Council will consist of the appointed members of the Council on Highways which is eliminated by this Chapter and fifteen (15) members appointed by the Governor.

(3) shall be persons who reside in New Castle County outside of the City of Wilmington, three (3) shall be persons who reside in Kent County, three (3) shall be persons who reside in Sussex County and three (3) shall be persons who are residents of the State of Delaware.

(g) Members of the Council on Highways shall be permitted to complete the existing term of their membership pursuant to the foregoing, but shall not be considered appointed members for purposes of subsection (h) herein. As the terms of the members of this Council on Highways expire, the membership of such Council shall be reduced to fifteen (15) members, and shall remain at fifteen (15) thereafter."

() After the membership is stablized at 15, there shall not be more than a bare majority representation of 1 major political party over the other major political party. Any person who declines to announce his political affiliation shall be eligible for appointment.

() The terms of appointments shall be three (3) years.

(a) Members of the Council shall serve without compensation, except that they may be reimbursed for reasonable and necessary expenses incident to their duties as members of the Council.

(b) Failure to attend three (3) consecutive regular meetings of the Council shall be construed as a request by that member to resign from the Council and replacements may thereafter be appointed in his stead.

(I) Any replacement appointed to the Council to fill a vacancy prior to the expiration of a term shall be filled only for the remainder of the term.

Section 8410. Books; Records; Access; Annual Report.

(a) The Council on Transportation shall have access to all books, records, reports and other documents relating to the divisions and offices of the Delaware Department of Transportation unless otherwise prohibited by law.

(b) The Chairperson of the Council on Transportation shall make an annual report of the Council's operations to the Secretary, the Governor, and the General Assembly and render such other reports as the Secretary, the Governor, or the General Assembly may from time to time request or may be required by law.

Section 8411. Exemptions.

The following positions and administrations set forth in this Chapter shall be exempt from Chapter 59 of this Title:

(a) Secretary of the Department of Transportation

(b) Director of the Transportation Authority.

(c) Director of the Division of Highways.

(d) Chief of the Office of Administration.

(e) Chief of the Turnpikes Administration.

(1) Chiefs of such other Divisions or Administrations as may be established by the Secretary with the written approval of the Governor."

"CHAPTER 13. DELAWARE TRANSPORTATION AUTHORITY SUBCHAPTER 1. DEFINITIONS AND PURPOSE

Section 1301. Definitions.

As used in this part:

(a) "Area" or "area of operation" means that part of the State for which a local transportation authority or specialized transportation authority shall be created.

(b) "Authority" means the Transportation Authority of the Department of Transportation.

(c) "Department" means the Department of Transportation.

(d) "Director" means the Director of the Transportation Authority.

(e) "Mass transportation" means the transportation of people, usually in groups, by means other than privately-owned automobile, and it also shall include the transportation of goods by rail.

() "Public utility" means any person (as defined in Section 302, Title 1) or his lessee, trustee, or receiver who operates within this State any railroad, railway, street railway, traction railway, motor bus, bus, taxi, electric trackless trolley coach, trolley, or monorail for transportation.

(a) "Secretary" means the Secretary of the Department of Transportation.

(h) "Railroad" means a road, the cars, carriages and coaches on which are propelled by steam power, electricity, cable, motor or any improved motive power.

Section 1302. Purpose.

(a) It is the purpose and intent of this part to establish the means whereby the full resources of this State can be used and applied in a coordinated and integrated manner to solve or assist in the solution of the problems of mass and specialized transportation; to promote and supply an economical, efficient, integrated and balanced mass and specialized transportation systems for all of the people in accordance with the need in various parts of the State; to prepare and implement comprehensive plans and programs for mass and specialized transportation development and improvement in this State; and to coordinate the mass and specialized transportation activities of state agencies, and other public agencies with mass and specialized transportation responsibilities within this State.

() The Authority shall be responsible for the coordination of all mass and specialized transportation facilities within this State so as to obtain for the citizens of this State economical, efficient and coordinated mass and specialized transportation systems in accordance with the need in various parts of the State.

(a) Whenever the Secretary determines that a need for mass or specialized transportation services exists in a part of this State which is not being met, or which will not be met in the future because of a projected reduction or termination of services, the Authority at the recommendation of the Secretary with the approval of the General Assembly shall undertake to provide such services pursuant to Chapters 15, 16 or 17, Title 2, or this Chapter as soon as possible in the manner provided in this part.

port of its terms and shall be liberally construed to further the general purposes stated in this section and the special purposes of the particular provision involved.

SUBCHAPTER 11. JURISDICTION, POWERS, AND DUTIES.

Section 1321. Powers and Duties.

(a) The Secretary may:

(1) Develop, revise, and maintain a state comprehensive plan for the coordination, development and improvement of mass and specialized transportation. This shall be done in cooperation with any local or regional transportation agencies, includng local transit authorities created pursuant to Chapters 15, 16 or 17, and in cooperation with the Council on Transportation;

(2) Develop programs designed to foster efficient and economical public mass and specialized transportation services in this State;

(3) Prepare plans for the preservation and improvement of commuter railroad and bus systems;

(4) Develop plans for more efficient public transportation service by bus operators; develop statistics, analyses, and other data of use to bus operators in the improvement of public transportation service; and facilitate more effective coordination between bus service and other forms of public transportation, particularly the commuter railroads;

(5) Coordinate transportation activities of the authority with those of the local transportation authorities, specialized transportation authorities, public utilities and public agencies.

authorities, county governing bodies, state department, divisions, offices, councils, bureaus, commissions and other state agencies, appropriate federal agencies, municipalities and with interested private individuals and organizations in the coordination of plans and policies for the development of mass and specialized transportation facilities;

(7) Conduct public hearings on the need and economic feasibility of public mass and specialized transportation services in various parts of the State;

(8) Employ, in his/her discretion, in accordance with existing law, planning, architectural and engineering consultants, attorneys, accountants, construction, financial, transportation and traffic experts and consultants, superintendents, managers, and such other officers, employees, and agents as may be necessary in his judgment, and fix their compensation;

(9) Make grants of funds upon such terms and conditions as the Secretary shall deem best to transportation authorities created pursuant to Chapters 15, 16 and 17, Title 2, public agencies, and public utilities operating within this State to enable such authorities, agencies, and utilities to furnish, to continue to furnish, or expand mass and specialized transportation service to the citizens of this State in an economical manner;

(0) Make payments to any transportation authorities created pursuant to Chapters 15, 16 or 17, Title 2, or public utility out of funds appropriated to the Authority by the General Assembly for any purpose consistent with providing public and specialized transportation services within the local transportation authorities or public utility's areas of operation.

(1) Investigate any matters concerning any public utility operating a public mass and specialized transportation system, and in aid of such investigation the Department shall have access to and the public utility shall make available its property, books, records, or documents;

(12) Call to his/her assistance and avail himself/herself of the services of such employees of any federal or state agency as he may require and as may be available to him/her for said purpose;

(13) Delegate any of his/her powers and duties to committees and commissions, administrations, divisions, offices, or employees of the Department;

(14) Create advisory boards; and

(15) Enter into any and all agreements or contracts, execute any and all instruments, and do and perform any and all acts or things necessary, convenient or desirable for the implementation of the purpose of this chapter or to carry out any power or duty given in this part.

(16) Exercise exclusive authority to promulgate rules and regulations relative to the size, weight, load and passenger occupancy of buses operated by an transportation authorities created by Chapters 15, 16 or 17, Title 2, in any county, city, incorporated municipality, town or political subdivision of this State.

(b) The Secretary shall:

(1) Approve and join in on behalf of the State applications of subdivisions of the Authority and any transportation authorities created pursuant to Chapters 15, 16 or 17, Title 2, for grants from the federal government or any agency thereof, or from any county, municipality, foundation or person, and comply with the terms, conditions and limitations thereof, for any of the purposes of the Authority. Any money so received may be expended by the subdivisions of the Authority and any transportation authorities created pursuant to Chapters 15, 16 or 17, Title 2, subject to any limitations imposed in such grants, to effect any of the pur-

poses of this Chapter, as the case may be;

(2) Receive and expend such sums of money as may be appropriated to the Department by an appropriation act or bond authorization act of the General Assembly;

(3) Have exclusive original supervision and regulation of all public carriers other than a transportation authority created pursuant to Chapters 15, 16 or 17, Title 2, and also over their property, property rights, equipment, facilities, franchises, rates, fares, tariffs, regulations, practices, measurement and service, heretofore vested in the Dept. of Highways and Transportation under Paragraph (g), Section 132, Subchapter III, Chapter I, Title 17, Delaware Code;

(4) Make an annual report of the Authority's activities each year, to be included in the Department's report to the Governor and the General Assembly. Each such report shall set forth complete operational and financial statements covering the operations of each of the Authority's Administrations during the year.

Section 1322. Continuation of Employees.

All employees of any commission, board, department, division, authority, council, or agency, to the extent that the same arc consistent with Chapter 84 of Title 29, Delaware Code, and in connection with a function transferred to the Authority, shall continue and be deemed to be employees of the Authority, shall continue and be deemed to be employees of the Authority. All benefits which were accrued as either merit employees or employees of established Authorities shall be retained."

Section 9. Amend Part II, Title 2, Delaware Code,

by adding thereto a new Chapter 14 to read as follows:

"CHAPTER 14. DELAWARE TURNPIKE

Section 1401. Definitions.

As used in this part:

(a) "Authority" shall mean the Transportation Authority of the Department of Transportation of the State or the board, body, commission or authority succeeding to the principal functions, thereof.

() "Department" shall mean the Department of Transportation of the State or the board, body, commission or authority succeeding to the principal functions, thereof.

() "Turnpike" shall mean the express toll highway or such part or parts thereof as have been constructed pursuant to provisions of Chapter 6, Title 17, in effect immediately prior to the passage of this Act or any other Chapter of the Delaware Code or may be constructed under the provisions of this Chapter together with and including all bridges, tunnels, overpasses, underpasses, interchanges, entrance plazas, exits, approachs, connecting highways, service stations, restaurants, and administration, storage and other buildings and facilities which the Authority may deem necessary for the operation of the turnpike, together with all property, rights, easements, and interests which may be acquired by the Authority with the written approval of the Secretary of the Department of Transportation for the construction or the operation of the turnpike.

(a) The term "cost of the turnpike" shall embrace the cost of construction, the cost of acquisition of all land, right-of-way, property, rights, easements, and interests acquired by the Department for such construction, the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of all machinery and equipment, financing charges, interest prior to and during the construction, and, if deemed advisable by the Department, for 1 year after commencement of operations, cost of traffic estimates and of engineerng the legal expenses, plans, specifications, surveys, estimates of cost and of revenues, other expenses necessary or incident to determining the feasibility or practicability of constructing the turnpike, ad-

ministrative expenses and such other expenses as may be necessary or incident to the construction of the turnpike in operation. Any obligation or expense incurred by the Department before or after August 24, 1961, from public funds or by the Delaware Interstate Highway Division for right-of-way, easements, traffic surveys, boring, preparation of plans and specifications, other engineering services, or any other funds whatsoever in connection with the construction of such express highways shall be regarded as part of the cost of the turnpike and shall be reimbursed to the State Treasurer.

(e) "Secretary" shall mean the Secretary of the Department of Transportation.

Section 1402. Delaware Turnpike.

The Authority may, with the written approval of the Secretary and subject to this Chapter, construct, reconstruct, maintain, repair, improve and operate at such location as it may approve a system of toll express highways, to be known as the "Delaware Turnpike", from a point in the vicinity of the westerly approach of the Delaware Memorial Bridge to points at or near the boundary lines between this State and the Commonwealth of Pennsylvania and State of Maryland or such parts thereof as it may determine.

Section 1403. John F. Kennedy Memorial Highway.

(a) That portion of the Delaware Turnpike leading from the Delaware Memorial Bridge to the Maryland State Line shall be known as the "John F. Kennedy Memorial Highway."

(b) The Authority shall designate such portions of the Turnpike as may be necessary to effectuate the intention of this section the "John F. Kennedy Memorial Highway" and shall cause to be erected suitable signs or markers to inform the public of the proper name.

Section 1404. Duties of Director of the Authority and Chief of Turnpikes Administration.

(a) The Director of the Authority shall be responsible for the supervision of all engineering work in the construction, repair, improvement and maintenance of the Turnpike.

(b) The Director of the Authority may appoint such deputies as may be necessary for the supervision of such construction, repair, improvement and maintenance of the Turnpike, subject to the provisions of Chapter 84, Title 29, Delaware Code.

(c) The Chief of the Turnpike Administration shall supervise the operations of the Turnpike Administration and shall perform such other duties as may be required by the Director of the Authority. The Chief of Turnpikes shall assume all duties which were previously vested in the General Manager.

Section 1405. General Grant of Powers.

With the written approval of the Secretary and in accordance with policy guidelines which shall be established by the Secretary and in order to carry out its duties under this Chapter, the Authority, in addition to any of its other powers and authority, may:

(a) Maintain a Turnpike Administration office or offices at such places within the State as it may determine.

(b) Construct, reconstruct, maintain, repair, improve, and operate the Turnpike, and necessary buildings and appurtenances or any part or parts thereof as it may determine.

() Acquire sites abutting on the Turnpike and construct or contract for the construction of buildings and appurtenances for gasoline stations, restaurants, lodging and

other services and lease or operate the same for the above purposes in such manner and under such terms as it may determine.

(d) Fix and revise from time to time and charge and collect tolls for transit over the Turnpike, and it shall upon request furnish a user of the Turnpike a toll receipt showing the amount of toll paid, the classification of the vehicle and the date and place of exit from said Turnpike.

(e) Establish rules and regulations for the use of the Turnpike and provide penalties for the violation of said rules and regulations.

(f) Acquire, hold and dispose of real and personnel property in the exercise of its powers and the performance of its duties under this Chapter.

(g) Acquire by purchase or otherwise, on such terms and conditions as it may deem proper, or by the exercise of the powers of eminent domain, such public lands, parks, playgrounds, reservations, cemetaries, highways or parkways, or parts thereof or rights therein, and any fee absolute or any lesser interest in such private property as it may deem necessary for the carrying out of the provisions of this Chapter, including any fee simple absolute in, easements upon or the benefit of restrictions upon abutting property to preserve and protect the Turnpike.

(11) Designate the locations, and establish, limit and control such points of ingress to and egress from the Turnpike as may be necessary or desirable in the judgement of the Authority to insure the proper operation and maintenance of the Turnpike, and to prohibit entrance to the Turnpike from any point or points not so designated.

(i) Make and enter into all contracts and agreements with the written approval of the Secretary necessary or incidental to the performance of its duties and the executing of its powers under this Chapter.

(j) Employ in accord with existing law, consulting engineers, attorneys, accountants, construction and financial experts, superintendents, managers and such other employes and agents as may be necessary to its judgement, and fix their compensation.

(k) Receive and accept grants from any federal agency for or in aid of the construction, reconstruction, maintenance, improvement, and/or operation of the Turnpike, and to receive and accept aid or contributions from any source of either money, property, labor or other things of value, to be held, used and applied only for the purposes for which such grants and contributions may be made.

(1) Do all acts and things necessary or convenient to carry out the powers expressly granted in this Chapter.

Section 1406. Incidental Powers.

(a) The Authority may construct, reconstruct, maintain or improve grade separations at intersections of the Turnpike with public highways and change and adjust the lines and grades of such highways so as to accommodate the same to the design of such grade separation. The cost of such grade separations and any damage incurred in changing and adjusting the lines and grades of such highways shall be ascertained and paid by the Authority as a part of the cost of the Turnpike.

(b) If the Authority shall find it necessary to change the location of any portion of any public highway, it shall, with the written approval of the Secretary, reconstruct the same at such location as the Authority shall deem most favorable, and of substantially the same type and in as good condition as the original highway. The cost of such reconstruction and any damage incurred in changing the location of any such highway shall be ascertained and paid by the Authority as a

part of the cost of the Turnpike.

(c) Any public highway affected by the construction of the Turnpike may be vacated or relocated by the Authority with the written approval of the Secretary and any damages awarded on account thereof shall be paid by the Authority as a part of the cost of the Turnpike.

(d) In addition to the foregoing powers, the Authority and its authorized agents and employees may enter upon any lands, waters and premises in the State for the purpose of making surveys, soundings, drillings and examinations as they may deem necessary or convenient for the purposes of this chapter, and such entry shall not be deemed a trespass, nor shall an entry for such purposes be deemed entry under any condemnation proceedings which may be then pending. The Authority shall make reimbursement for any actual damage resulting from such activities.

(e) The Authority with the written approval of the Secretary may make reasonable regulations including the authority to grant easements for the installation, construction, reconstruction, maintenance, repair, renewal, relocation and removal of tracks, pipes, pipelines, mains, conducts, cables, wires, towers, poles and other equipment and applicances of any public utility, or of any corporation or person owning or operating pipelines in, on, along, over or located in, on, along, over or under the Delaware Turnpike, should be relocated or should be removed from the Delaware Turnpike, the public utility, corporation or person owning or operating such facilities shall relocate or remove the same in accordance with the order of the Authority, with the written approval of the Secretary. In case of any such relocation or removal of facilities, the public utility, corporation or person owning or operating the same, its successor or assigns, may maintain and operate such facilities, with the necessary appurtenances, in the new location or new locations, for as long a period, and upon the same terms and conditions, as it had the right to maintain and operate such facilities in their former

location or locations, provided, however, that the cost of removal or relocation of such facilities, or of installing such facilities in a new location, and the cost of any lands, or any rights or interests in lands, and any other rights acquired to accomplish such relocation, removal or installation, shall be ascertained and paid by the Authority as part of the cost of the Delaware Turnpike.

(1) The Authority may, in the process of constructing or reconstructing all or any part of the Turnpike or any extension thereof or additions thereto, take by eminent domain such land abuttng the Turnpike as it may deem necessary or desirable for the purpose of removing or relocating all or any part of the facilities of any public utility, including rail lines, and may thereafter lease the same or convey an easement or any other interest therein to such utility company upon such terms as it, in its sole discretion, may determine. The relocation of the facilities of any public utility, including rail lines, in accordance with the provisions of this Section shall be valid upon the filing of the plans thereof with the Public Service Commission, and no general laws or other special laws or parts thereof shall be applicable to such relocation.

(g) Any other provisions of the Delaware Code to the contrary notwithstanding, the Authority may sell the building or other structures upon any lands taken by it, or may remove the same, and shall sell, if a sale be practicable, or if not, shall lease, if a lease is practicable, any lands or interests in lands or other property taken or purchased for the purposes of this Chapter, whenever the same shall, in the opinion of the Authority cease to be needed for such purpose. The proceeds of any such sale or lease shall be applied toward the cost of the Delaware Turnpike or deposited to the credit of the sinking fund for the transportation revenue bonds issued under the provisions of Title 2, Chapter 19. The Director of the Authority shall execute and deliver, in proper form, any documents required as a result of any sale or lease under this section.

permission by easement or otherwise to any corporation or person to place and maintain on or under or within the Turnpike, ducts, pipes, pipelines, wires or other structures, to be so located as not to interfere with the same and convenient operation and maintenance of the Turnpike, and may contract with any such person or corporation for such permission on such terms and conditions as may be fixed by the Authority. The construction, reconstruction, maintenance, improvement and repairs of such ducts, pipes, pipelines, wires or other structures shall be subject to such directions and regulations as the Authority may impose. The Director of the Authority shall execute, in proper form, any documents required as a result of any easement place, maintained or granted under this Section.

Section 1407. State Highways and Bridges.

(a) The Authority may, with the written approval of the Secretary, incorporate in the Turnpike as an integral part thereof any existing state highway or bridge or any partially completed state highways or bridge which it may deem necessary, and the actual cost thereof shall be reimbursed to the State Treasurer from the proceeds of transportation revenue bonds and shall be treated as a part of the cost of the Turnpike.

() In addition, and without any such reimbursement to the State Treasurer, the Authority may, with the written approval of the Secretary, incorporate in the Turnpike, for purpose of maintenance, repair and improvement only, such state highways and bridges as the Authority may deem necessary to assure the economic feasibility and management of the Turnpike and may expend funds for these purposes arising from Turnpike revenue as authorized by this Chapter.

Section 1408. Maintenance and Operation of Delaware Turnpikes, Damage to Private Property; Lease, Loan or Grant of Municipal Real Property, Arrest for Nonpayment of

Tolls; Annual Report; Unclaimed Property.

(a) The Delaware Turnpike shall be maintained and kept in good condition and repaired by the Authority. The Delaware Turnpike shall also be policed and operated by such force of police, tolltakers and other operating employees as the Authority may, in its discretion and in accord with existing law employ and the Authority may contract, with the written approval of the Secretary, for any or all accounting, administrative, policing, maintenance or other services with any private or public agency provided that all existing laws are complied with.

(b) All private property damaged or destroyed in carrying out the powers granted by this Chapter shall be restored or repaired and placed in its original condition as nearly as practicable, or adequate compensation made therefor out of funds provided under the authority of this Chapter.

(c) All counties, cities, towns and other political subdivisions and all public agencies and commissions of the State, notwithstanding any contrary provision of law, may lease, lend, grant or convey to the Authority at its request upon such terms and conditions as the proper authorities of such counties, cities, towns, political subdivisions, agencies or commissions of the State 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 Authority, including public roads and other real property already devoted to public use. Provided that any city, town or municipality shall exercise the power and authority granted in this Chapter only by consent of its council or chief legislative body, which consent shall be exercised by ordinance.

(d) Any operator of a vehicle using the Delaware Turnpike who refuses to pay the toll prescribed by the Authority,

or who evades or attempts to evade payment of the toll prescribed by the Authority, may be arrested without a warrant. The fine for such offense to be not less than $10.00 and not more than $50.00 in addition to costs.

(e) The Authority shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants, and the cost thereof may be treated as part of the cost of construction or operation of the Delaware Turnpike.

(f) If money, goods, or the property which has been abandoned, mislaid or lost on the premises of the Delaware Turnpike comes into the possession of said Authority and remains unclaimed in its possession for a period of one hundred twenty (120) days, the Authority may sell the same, excepting money so unclaimed, at public auction after notice of such sale has been published for three (3) successive weeks in a newspaper with general circulation in the county where such sale is to take place. The net proceeds of such sale, after deducting the cost of storage and the expenses of the sale, and all money so unclaimed, shall be paid into and become the property of the Authority. If, the opinion of the Authority, any property so abandoned, mislaid, or lost which comes into the possession of the Authority and remains unclaimed in its possession for a period of one hundred twenty (120) days, is of value of $3.00 or less, the Authority may donate the same to a charitable organization.

Section 1409. Budget.

The Turnpike Administration shall have prepared before September 1 of each year a budget for the next fiscal year which shall commence on the following July 1st. This budget will be used and considered in preparation of the Authority, and the Department of Transportation overall budget.

Section 1410. Transfer to State.

When all bonds constituting the original capitalization for the Turnpike and interest thereon have been paid, the Turnpike, if in good condition and repair, shall come under the exclusive jurisdiction and control of the Authority.

Section 1411. Non-Annexation.

The Turnpike shall not be subject to annexation by any County, City, Town or any other political subdivision, except as provided in 14 Delaware Code, §4910 herein.

Section 1412. Construction.

This Chapter, being necessary for the welfare of the State and its inhabitants, shall be liberally construed to effect the purposes thereof.

Section 1413. Severability.

The provisions of this Chapter 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.

Section 1414. Audit.

(a) The books, records, and accounts of the turnpike administration shall be audited annually by a certified public accountant licensed to practice in this State. Copies of this audit shall be furnished to the Secretary, the Director, the Auditor of Accounts, the proper State Legislative committees and other interested parties.

(b) The Auditor of Accounts may also audit the books, records, and accounts of an administration.

follows:

"CHAPTER 19. DELAWARE TRANSPORTATION AUTHORITY FINANCING.

Section 1901. Definitions.

As used in this Chapter, unless the context clearly indicates a different intent:

(a) "Airport Facilities" shall mean any one or more or combination of lands, airfield improvements, terminal improvements, general aviation facilities, air cargo facilities, general site improvements, utilities, roads, streets, parking lots, and all other facilities necessary or useful in connection with the operation of a modern airport and every and all other appurtenances and equipment now in use or hereafter designed for use in the handling of air carrier service, general aviation activities and others at any location within the State.

(b) The term "revenue bonds of prior issues" shall mean all "Delaware Turnpike Revenue Bonds" issued and sold under the provisions of Section 613, Title 17 of the Delaware Code.

(c) "Code" shall mean the 1974 Edition of the Annotated Code of Delaware as replaced, amended and supplemented from time to time.

(d) The term "cost" as applied to transportation facilities or any transportation facility project shall mean the cost of construction, reconstruction, acquisition, improvement, extension, alteration, modernization, planning, maintenance and repair of any such transportation facility or project, including the cost of all interests in property acquired in connection therewith, any financing charges and interest prior to, during and for one year after completion of construction, financial, architectural, consulting, engineering and legal services, plans, specifications, surveys, estimates, feasibility reports, direct and indirect labor, materials, equipment and administrative expenses, and all other expenses which may be incident to the construction, reconstruction, acquisition, improvement, extension, alteration, modernization, maintenance or repair of transportation facilities or any transportation facility project or the financing thereof.

(e) "Authority" and "Director" shall mean respectively, the Transportation Authority and the Director of the Transportation Authority. Unless expressly provided otherwise, the Director shall be responsible for the exercise of all powers, duties and functions conferred upon the Authority by the provisions of this Article.

(f) "Turnpike Facilities" shall mean the express toll highways or such part or parts thereof as have been constructed pursuant to provisions of Chapter 6, Title 17, or any Chapter of the Delaware Code or may be constructed under the provisions of this Chapter together with and including all bridges, tunnels, overpasses, underpasses, interchanges, entrance plazas, exits, approaches, connecting highways, service stations, restaurants, lodging and administration, storage and other buildings and facilities which the Authority may deem necessary for the operation of the turnpike, together with all property, rights, easements, and interests which may be acquired by the Authority for the construction or the operation of the turnpike.

(g) The term "outstanding and unpaid" shall not include bonds purchased and held by or for the Authority in sinking funds, nor matured bonds not presented for payment, nor bonds called for redemption but not presented for redemption, if the monies for such payment or redemption have been provided.

(h) "Port Facilities" shall include any one or more or combination of lands, piers, docks, wharves, warehouses, sheds, transit sheds, elevators, compressors, refrigeration

storage plants, buildings, structures and other facilities, appurtenances, and equipment necessary or useful in connection with the operation of a modern port and every kind of terminal or storage structure or facility now in use or hereafter designed for use in the handling, storage, loading or unloading of freight or passengers at stemship terminals, and every kind of transportation facility now in use or hereafter designed for use in connection therewith.

(i) The term "refunding" shall mean the retirement and cancellation of bonds, including revenue bonds of prior issues, after their acquisition by or for the Authority, whether before, at or after maturity, either in exchange for other bonds or by payment, purchase or redemption with the proceeds of the sale of other bonds.

(j) "Transit Facilities" shall include any one or more or any one or more or any combination of real or personal property necessary or useful in rendering transit service by any means whatever, including tracks, rights-of-way, bridges, tunnels, subways, rolling stock for rail, motor vehicle, or other modes of transportation, stations, terminals and ports, areas for parking and all equipment, fixtures, buildings and structures and services incidental to or required in connection with the performance of transit service.

(k) "Transportation Facilities" shall- include turnpike facilities, port facilities, airport facilities and transit facilities, or any combination thereof.

(I) The term "transportation facilities project" shall include any such project hereafter authorized by the Authority to be acquired or constructed, and shall also include any additions, improvements or enlargements to any such project heretofore or hereafter authorized.

(m) "Secretary" means the Secretary of the Department of Transportation.

Section 1902. Preliminary Expenses & Tranfer

of Obligations.

(a) To provide for the preliminary expenses in carrying out this Chapter, the sum of $700,000 is appropriated from the Capital Investment Fund, which sum shall be repaid to the Capital Investment Fund within five (5) years from the date of said appropriation with interest computed annually at the average rate of interest received by the State in its cash management activities.

(b) The Authority shall make such surveys and studies of the transportation facilities and transportation facility projects as may be necessary to effect the financing authorized by this Chapter at the earliest practicable time, and for this purpose shall employ such consultants, legal and financial experts and such other employees and agents as it may deem necessary.

(c) Unobligated and unspent bond authorization acts of the General Assembly which were approved for "Transit Projects" to the Department of Highways and Transportation shall be transferred to the Authority. These bond authorizations shall carry all the conditions and limitations under which they were originally authorized by the General Assembly.

(d) The cost of amortizing all State Capital Improvement Bonds which were, or will be, sold to finance designated "Transit Projects" shall be borne by the Authority. The Authority shall transfer to the State Treasurer on a regular agreed schedule the funds necessary to meet this obligation of the Authority.

(e) Except where specifically exempted elsewhere, all employees of the Authority shall be considered State employees subject to all the provisions of Part V, Title 29, Delaware Code. The Authority shall be obligated for the total cost of all payments for wages and payments for wages and fringe benefits to these employees and shall transfer to the State Treasurer on a regular agreed schedule the funds necessary to meet these obligations.

Section 1903. Revenue Bonds.

The Authority is hereby authorized and empowered to finance the cost of transportation facilities and transportation facilities projects, in the name of the State, by the issuance of revenue bonds of the Authority, payable solely from the revenues of the transportation facilities or transportation facility projects. The bonds shall be known as "Transportation Revenue Bonds".

Section 1904. Revenues.

(a) Pursuant to and consistent with Section 1405, Title 2, Delaware Code; the Authority may make and enforce such rules and regulations and establish, fix, revise, change, collect (or authorize by contract, franchise, lease or otherwise, the establishment, fixing, revising, changing, levying and collecting of) such tolls, fares, rents, rates and other charges for the use of any transportation facility or transportation facility project operated by the Authority, the different parts or sections thereof, and any improvements or extensions thereof as it may deem necessary, proper, desirable and reasonable. The Director may, with written approval of the Secretary of the Department of Transportation, contract with any person, partnership, association, or corporation desiring the use of any part of the transportation facilities, or transportation facility project including right-of-way, for placing thereon, telephone, telegraph, electric light or power lines, gas stations, garages, restaurants, and advertisements, or for any other purposes, and fix the terms, conditions, rents, and rates of charges for such use. Such tolls, fares rents, rates and other charges shall be so fixed and adjusted from time to time in respect to the aggregate of tolls, fares, rents, rates and other charges from the transportation facilities or transportation facility projects as to provide a fund sufficient with other revenues, if any, (a) to pay the cost of transportation facilities and transportation facility projects; (b) to pay the principal and interest upon bonds issued under the provisions of this Chapter, including bonds issued to refund such bonds at or prior to maturity thereof and

financing costs; (c) to provide operating and debt service reserve funds of such character and amount as the Authority shall determine to be necessary to insure proper maintenance of the transportation facilities and transportation facility project and to protect the holders of bonds issued under the provisions of this Chapter; and (d) to provide a surplus after paying and providing for the requirements set out in terms (a) to (c) inclusive.

(b) With the exception that the Department shall have power to review and revise such tolls, fares, rents, rates and other charges shall not be subject to supervision or regulation by any department, division, commission, board, council, bureau or agency of the State or any political subdivision thereof. The Authority will consider the general welfare of the State in establishing tolls, fares, rents, rates, and other charges.

(c) The tolls, fares, rents, rates, other charges, and all other revenues derived from the transportation facilities or transportation facility projects, except such part thereof as may be necessary to pay the cost of transportation facilities or transportation facility projects and provide such reserves therefore as may be provided for in the order authorizing the issuance of transportation revenue bonds or in the trust agreement securing the same, shall be set aside at such regular intervals as may be provided in such order or such trust agreement in a sinking fund which is pledged to, and charged with, the payment of the principal of and the interest on bonds issued under the provisions of this Chapter as the same shall become due, and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made; the tolls, fares, rents, rates, other charges, other revenues, or other moneys so pledged and thereafter received by the Authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Authority irrespective of whether such parties

have notice thereof. Neither the order nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the Authority. The use and disposition of moneys to the credit of such sinking fund shall be subject to the provisions of the order authorizing the issuance of the transportation revenue bonds or of such trust agreement. Except as may otherwise be provided in such order or such trust agreement, such sinking fund shall be a fund for all bonds issued under the provisions of this Chapter without distinction or priority of one over another.

(d) Provided, however, that nothing herein contained shall be deemed to permit the exercise of any authority or the undertaking of any activity that would conflict with the provisions and limitations of the Urban Mass Transportation Act as it may be amended from time to time.

() Without in any way limiting or restricting the effect or application thereof, the provisions of this subheading are intended and shall be construed to authorize the Authority with the written approval of the Secretary to finance any transportation facility or facilities or transportation facility project or projects or any combination of such projects by any combination of issues or series of bonds which shall be secured by the pledge of the net or gross (or combination thereof) rentals, rates, fees, tolls and other charges and revenues, from any transportation facility or facilities or transportation facility project or projects or combination of such projects, designated by the resolution authorizing the issuance of such bonds or by any trust agreement securing such bonds.

Section 1905. Exemption from Taxation.

The exercise of the power granted by this chapter will be in all respects for the benefit of the people of the State for the increase of their commerce and prosperity and for the improvement of their safety, health and living conditions. As the operation and maintenance of the Transportation Facilities by the Authority will constitute the performance of

essential governmental functions, the Authority shall not be required to pay any taxes or assessments upon the Transportation Facilities or any property acquired or used by the Authority under the provisions of this chapter or upon the income therefrom, and the bonds issued under the provisions of this chapter, their transfer and the income therefrom (including any profit made on the sale thereof) shall at all times be free from taxation by the State.

Section 1906. Transportation Revenue Bonds.

(a) The Authority may, with the written approval of the Secretary of the Department of Transportation, provide by resolution, at one time or from time to time, for the issuance of transportation revenue bonds of the Authority for the purpose of paying all or any part of the cost of transportation facilities or transportation facility projects or any part or parts thereof or refunding any bonds of prior issue then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds. The principal of and the interest on such bonds shall be payable solely from the funds provided by this Chapter for such payment. The bonds shall be dated, shall bear interest at such rate or rates, as may be determined by the Authority, shall mature at such time or times, not exceedng forty (40) years from their date or dates, as may be determined by the Authority and may be made redeemable before maturity, at the option of the Authority, at such price or prices and under such terms and conditions as may be fixed by the Authority prior to the issuance of the bonds. The Authority shall determine the form of the 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, which may be at any bank or trust company within or without the State. The bonds shall be signed by the Director of the Authority and the Secretary of the Department, or shall bear their facsimile signatures, and shall bear a facsimile of the official seal of the Authority attested by the Secretary of State, and any coupons attached thereto shall bear the facsimile signature of the Director of the Authority

and the Secretary of the Department. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. All bonds issued under this Chapter shall have all the qualities and incidents of negotiable instruments under the negotiable instruments law of the State. The bonds may be issued in coupon or in registered form, or both, as the Authority may determine, and provisions may be made for the registration of any coupon bonds as to principal alone and also as to both principal interest for the reconversion into coupon bonds of any bonds registered as to both principal and interest and for the interchange of registered and coupon bonds. The Authority may sell such bonds in such manner, either at public or at private sale, and for such price, as it may determine to be for the best interests of the Authority.

(b) The proceeds of the bonds shall be used solely for the payment of the cost of the transportation facilities and transportation facility projects and shall be disbursed in such manner and under such restrictions, if any, as the Authority may provide in the resolution authorizing the issuance of such bonds or in the trust agreement mentioned in Section 1509 of this title securing the same. If the proceeds of the bonds initially issued, by error of estimates or otherwise shall be less than such cost, 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 such bonds or in the trust agreement securing the same, 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 such cost, the surplus shall be deposited to the credit of the sinking fund for such bonds.

(c) Prior to the preparation of definitive bonds, the Authority may, under like restrictions, issue interim receipts or temporary bonds, with or wihtout coupons, exchangeable for definitive bonds, which such bonds shall have been executed and be available for delivery. The Authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds may be issued under the provisions of this Chapter without obtaining the consent of any department, division, commission, board, bureau or agency of the State, and without any other proceedings or the happenings of any other conditions or things than those proceedings, conditions, or things which are specifically required by this Chapter.

Section 1907. Transportation Revenue Refunding Bonds.

The Authority may, with the written approval of the Secretary of the Department of Transportation, provide by resolution for the issuance of Transportation revenue refunding bonds for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this Chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds and, if deemed, advisable by the Authority for the additional purpose of financing any additional costs of transportation facilities or transportation facility projects. The issuance of such bonds, the maturities and other details thereof, the right of the holders thereof, and the rights, duties and obligations of the Authority in respect of the same, shall be governed by this Chapter insofar as the same may be applicable. The issuance of transportation revenue bonds or transportation revenue refunding bonds under this Chapter need not comply with the requirements of any other law applicable to the issuance of bonds.

Section 1908. Credit of State Nat Pledged.

(a) Revenue bonds or revenue refunding bonds issued under the provisions of this Chapter shall not constitute a borrowing of money by a debt of the State or of any political subdivision thereof or a pledge of the faith and credit of the State or of any such political subdivision, but such bonds

shall be payable solely from the funds provided therefore by this Chapter from revenues. All such revenue or revenue refunding bonds shall contain on the face thereof a statement to the effect that neither the State nor the Authority shall pay the same or the interest thereon except from revenues of the transportation facilities or transportation facility projects and that neither the faith and credit nor the taxing power of the State or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds.

(b) The issuance of bonds under the provisions of this Chapter shall not directly or indirectly or contingently obligate this State to levy or pledge any form of taxation whatever therefore, or to make any appropriation for their payment, and shall not pledge interests subject to equitable liens of the federal government.

(c) All expenses incurred in carrying out this Chapter shall be payable solely from funds provided under the authority of this Chapter and no liability or obligation shall be incurred by the Authority under this Chapter beyond the extent to which moneys shall have been provided.

Section 1909. Agreement.

(a) In the discretion of the Authority, each and any issue of such bonds may be secured by a trust agreement by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without this State.

(b) Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign the revenues of the transportation facilities or transportation facility projects but shall not create a security interest in or convey or mortgage any property owned, operated or maintained by the transportation facilities or transportation facility projects. Either the resolution providing for the issuance of the bonds or such trust agreement may contain such provisions

specifying, defining, protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including convenants setting forth the duties of the Authority in relation to the acquisition, construction, improvement, maintenance, operation, repair and insurance of any transportation facilities or transportation facility projects or additions thereto, and the custody, safeguarding the application of all moneys.

(c) It shall be lawful for any bank or trust company incorporated under the laws of this State to act as depositiory of the proceeds of bonds or of revenues and to furnish such indemnifying bonds or to pledge such securities as may be required by the Authority. Such agreement 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 agreements securing bonds and debentures of corporations.

(d) In addition to the foregoing, such trust agreement or resolution may contain such other provisions as the Authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement resolution may be treated as part of the cost of maintenance operations and repairs of any transportation facility or transportation facility project.

Section 1910. Bonds as Legal Investments for Institutions and Fiduciaries, and Legal Deposit.

Bonds issued pursuant to this Chapter are securities in which all State and municipal officers and administrative departments, boards and commissions of this State, all banks, bankers, savings banks, trust companies, savings 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, guar-

dians, trustees, and other fiduciaries, and all other persons whatsoever who are now or may, on and after enactment of this Chapter, be authorized to invest in bonds or other obiligations of this State, may properly and legally invest any funds, including capital belonging to them or within their control; and such bonds are securities which may properly and legally be deposited with and received by any State, county or municipal officer or agency of the State for any purpose for which the deposit of bonds or other obligations of the State is now, or may on and after enactment of this Chapter, be authorized by law.

Section 1911. Moneys as Trust Funds.

All moneys received pursuant to the authority of this Chapter, whether as proceeds from the sale of bonds, or grants or other contributions, or as fares and revenues, shall be trust funds, to be held and applied solely as provided in this Chapter. The resolution authorizing the bonds or the trust agreement securing such bonds shall provide that any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of such money and shall hold and apply the same for the purposes hereof subject to such regulations as this Chapter and such resolution or trust agreement may provide.

Section 1912. Remedies of Bondholders and Trustees.

Any holder of bonds issued under this Chapter or any of the coupons appertaining thereto, and the trustee under any trust agreement, except to the extend the rights given by this Chapter may be restricted by such trust agreement, may either at law or in equity, by suit, action, mandamus or other proceedings, protect and enforce any and all rights under the laws of the State or granted by this Chapter or under such trust agreement or resolution authorizing the issuance of such bonds and may enforce and compel the performance of all duties required by this Chapter or by such trust agreement or resolution to be performed by the Authority or by any officer thereof, including the fixing, charging and collecting of tolls, fares, or charges, for the use of any transportation facilities.

Section 1913. Grants.

The Authority, its offices, division and subdivisions, may receive and accept grants from any government agency, or from any source whatsoever, of either money, property, labor or other things of value, to be held, used and applied for the purposes for which such grants and contributions may be made. Consistent with providing a coordinated system of transportation for the State, the Authority may make grants upon such terms and conditions as may be determined to any agency or organization, public or private.

Section 1914. Short Term Financing.

The Authority may without the issue of bonds as authorized by this chapter, pledge, encumber, mortgage or create a security interest in any assets of the Authority as security for loans to the Authority in order to enable it to acquire, initiate, operate, and improve transportation facilities.

Section 1915. Construction.

This Chapter, being necessary for the welfare of the State and its inhabitants, shall be liberally construed to effect the purposes thereof.

"Section 1916. Severability.

The provisions of this Chapter are severable, and if any of its provisions shall be held unconsitutional by any Court of Competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions.

Section 11. Amend Title 2, Delaware Code, by ad-

ding thereto a new Chapter 18 to read as follows:

"CHAPTER 18. PUBLIC CARRIER

Section 1801. Definitions.

As used in this Chapter:

(a) "Department" means the Delaware Department of Transportation.

() "Secretary" means the Secretary of the Department of Transportation.

() "Authority" shall mean the Transportation Authority.

() "Director" means the Director of the Transportation Authority.

(a) "Public Carrier" includes every individual, partnership, association, corportion, join stock company, agency, or department of this State, or any association of individuals engaged in the prosecution in common of a productive enterprise (commonly called a "cooperative"), their lessees, trustees or receivers appointed by any court whatsoever, that now operates or hereafter may operate, within this State, any railroad, street railway, traction railway, motor bus or electric trackless trolley coach service, system plan or equipment for public use other than transportation authorities created pursuant to Chapters 15, 16 or 17, Title 2.

(b) "Railroad" means a road, the cars, carriages and coaches on which are propelled by steam power, electricity, cable, motor or any improved motive power.

(c) "Limousine service" means the use of a motor vehicle having a passenger capacity of eleven persons or less exclusive of the driver to transport such passengers between termini over regular or irregular routes where at least one of

the termini is fixed.

(h) "Intrastate public carrier business" means all that portion of the business of a public carrier which is carried on in this State and over which the Department has jurisdiction under the provisions of this Act.

() "Gross revenue" means all revenue which (a) is collected by a public carrier subject to regulation by the Department; and (b) is derived from the intra-state public carrier business of such a carrier.

(a) "Motor bus" means a motor vehicle having a passenger capacity of twelve (12) persons or more exclusive of the driver who sits in a compartment separated from the passengers.

(b) "Public use" means the use of transportation or transportation related services offered by any railroad, street railway, traction railway, motor bus, electric trolley coach or limousine service, system or plant by any individual or group for any purpose except: (a) transportation to and from any school or school sponsored event when such transportation is under the regulation of the Department of Public Instruction; and (b) transportation to and from a church, synagogue or other place of worship.

Section 1802. Regulatory Duties and Functions.

(a) The Authority shall make and impose charges and fees for filing, copying, inspection and other services rendered pursuant to the powers granted by this act in accordance with such rules and regulations as it may From time to time adopt.

(b) The Authority, with the written approval of the Secretary, shall prepare proposed rules and practices covering the responsibilities of both itself and the public carriers it regulates. The rules and practices shall be reviewed by the

Authority at a public hearing following public notice. The rules and practices, as they may be amended by the Authority, shall have the effect of law upon the completion of the public hearing and adoption by the Authority, with the written approval of the Secretary. The Authority may, after public hearing, amend or establish additional rules and practices which shall have the effect of law.

No public carrier subject to the regulation of the Authority shall commence or continue operations, nor shall any public carrier begin any extension of its operations without having first obtained from the Authority a Certificate of Public Convenience and Necessity showing that the public need for such operations exists. The Authority, after hearing, may impose such terms and conditions upon the Certificate as may be required by public convenience and necessity.

(c) Whenever the Authority, in a proceeding upon its okt n initiative or upon complaint or upon written application to it shall deem it necessary in order to carry out its statutory duties, to investigate the operations, services, practices, accounting records and/or procedures, rates, charges, rules and regulations, of any public carrier -and/or to make valuations or reevaluations of the property of any public carrier, and/or to enter into and hold a hearing or hearings in connection therewith, such public carrier shall be charged with and pay such portion of the expenses of the Authority, and the compensation and expensesof its agents, representatives, consultants and employees, including but not limited to those temporarily employed or retrained, as is reasonably attributable to such investigation, valuation and reevaluation, hearing or hearings, provided that the notice of the Authority's intent so to charge such public carrier shall be given to such public carrier or to its counsel or record at such time as the Authority determines that such charge will be reguired. No charge shall be made for the compensation of full-time employees of the Authority except compensation thereof attributable to time spent with respect to proceedings whereby a public carrier seeks to establish or change its rates. The Authority shall have the power to subpoena such records and witnesses as it may require to carry on an in-

vestigation, valuation, reevaluation, and hearing as provided by this Title.

From time to time as the investigation, valuation, revaluation, hearing or hearing progresses, or upon completion thereof, the Authority shall ascertain its costs incurred in connection therewith, including but not limited to the expenses of the Authority and the compensation and expenses of its agents, representative, consultants and employees, including those temporarily employed or retained, and shall determine the amount thereofto be paid by the public carrier and shall render a bill therefor by certified mail to the public carrier. The Authority shall furnish the public carrier such itemization of said bill as may be requested by said public carrier. The public carrier shall have the right to audit said bill within a reasonable period after its rendition by the Authority and shall have the opportunity to be heard as to any or all of the items included in the bill. The amount of such bill as finally determined by the Authority following such hearing shall be paid by such public carrier to the Authority within thirty (30) days from the date of its determination. If any amount so assessed against a public carrier is not paid within thirty (30) days after the date of rendition of the bill with respect thereto, the carrier shall pay a penalty to the Authority of one percent (1%) of the amount due for each month or fraction thereof that such amount is unpaid.

The expenses of the Authority and the compensation and expenses of its agents, representatives, consultants, and employees, including but not limited to those temporarily employed or retained, reasonably attributable to any appellate court proceedings in either or both the Superior or Supreme Court of the State growing out of any order, opinion, decision or findings of the Authority shall also be ascertained, charged, billed to and paid for by the public carrier in accordance with the foregoing conditions and procedures. This section shall not apply to any appellate court proceedings from which a decision is rendered in favor of the public carrier and against the Authority.

Whenever the investigation, valuation, revaluation,

hearing, hearings, or appellate court proceedings involves the affairs and operations of two or more public carriers jointly, the charges made under this section for such investigation, valuation, revaluation, hearing, hearings or appelate court proceedings shall be prorated among such public carriers upon the basis of their gross intrastate operating revenues for the last preceding calendar year. This section shall not apply to any appelate court proceedings from which a decision is rendered in favor of the public carriers and against the Authority.

The total aggregate amount to be charged by the Authority to any public carrier under authority of this subsection (1) in any calendar year shall not exceed one percent (1%) of such public carrier's gross operating revenues derived from intrastate carrier operatings in the last preceding calendar year.

(d) It is declared to be the public policy of this State that in order to maintain and foster the effective regulation of public carriers under this Title, in the interests of the people of this State and the public carriers as well, the public carriers subject to regulation of the Authority which enjoy the privilege of operating as public carriers in this State, shall bear the expense of regulation by means of an assessment on such privilege measured by the annual gross revenue of such public carriers in the manner hereinafter provided. This assessment shall be in addition to all other fees and charges imposed by the Authority pursuant to this title and is imposed upon each public carrier subject to regulation by the Authority in an amount equal to the product of .002 (2 mills) multiplied by its gross operating revenue for each calendar year, commencing with the proata year beginning July 1, 1975. Whenever a public carrier commences operations during a year so that it has not operated for a full year prior to the date when its assessment is due, such carrier's assessment shall be pro-rated, based on the portion of the year during which the carrier operated.

rier subject to the provisions of this title shall file with the Authority an annual gross revenue return containing a statement of the amount of its gross revenue for the immediately preceding calendar year, and a statement of the amount of assessment due for such calendar year accompanied by a check in payment thereof. Forms for such return and amended shall be devised and supplied by the Authority.

(f) All returns (which term shall be deemed to include the accompanying check) submitted to the Authority by a public carrier, as provided in this section, shall be sworn to by an appropriate officer of the public carrier. The Authority may audit each such return submitted and may take such measures as are necessary to ascertain the correctness of the returns submitted. The Authority has the power to direct the filing of an amended return by any carrier which has filed an incorrect return and to direct the filing of a return by any carrier which has failed to submit a return. All returns will be used for the regulatory purposes as set out by this act, and shall not be open to public inspection, except as otherwise provided by law. In default of compliance with this section, the public carrier affected shall be subject to the penalties provided by subsection (q) of this section.

(g) Each payment of the assessment imposed by subsection (m) of this section becomes delinquent at midnight of the date that it is due. If upon filing a return or an amended return it shall appear that a public carrier has failed to pay, or has underpaid, the proper amount, it shall pay a penalty to the Authority of one percent (1%) of the amount due for each month or fraction thereof that such amount is unpaid. The Authority may enforce the collection of any delinquent installment of payment, or portion thereof, by legal action or in any other manner by which the collection of debts due the State of Delaware may be enforced under the laws of this State.

(h) There is hereby created within the State Treasury a special fund to be designated as the Delaware Transportation Authority Regulatory Revolving Fund which shall be used in the operation of the Authority in the performance of the various regulatory functions and duties required of it by law.

(i) All fees, licenses, assessments and other charges collected by the Authority pursuant to this Title shall be deposited in the State Treasury to the credit of said Delaware Transportation Authority Regulatory Revolving Fund to be used by the Authority in the performance of its various regulatory functions and duties required of it by law, subject always to annual appropriations by the General Assembly for salaries and other routine operating expenses of the Authority. All penalties or fines assessed and collected by the Authority shall not be deposited in said fund but shall be deposited in the General Fund of the State.

(j) In default of compliance with the rules and practices or any order of the Authority when the same becomes effective, the public carrier affected thereby shall be subject to: (a) a penalty of up to $100 per day for every day during which such default continues, to be recovered in an action in the name of the State; and (b) the suspension, for a duration not to exceed one year, or revocation of the public carrier's Certificate of Public Convenience and Necessity. The observance of the rules and practices and orders of the Authority may be compelled by mandamus or injuction. Within ten days of receiving notice that it is in default of compliance, the public carrier may appeal to the Authority for a hearing. Should the Authority, after such hearing, determine that the public carrier remains in default of compliance, the public carrier may appeal to the Superior Court. Such an appeal will be on record only and shall be taken as provided in Superior Court Rules for Appeals on the record below. The burden of proof of any such appeal is on the public carrier.

(k) Whoever knowingly performs, commits, or does, or participates in performing, committing or doing, or knowingly causes, participates or joins with others in causing any public carrier to do, perform or commit, or advises, solicits, persuades, or knowingly instructs, directs or orders any officer, agent or employee of any public carrier to perform, commit or do any act or thing forbidden or prohibited by

this Chapter, shall be fined not more than $1,000 or imprisoned not more than six (6) months or both.

(1) The Authority is authorized to hire sufficient staff to carry out the provisions of this act subject only to the funding granted by the General Assembly."

Section 12. Amend Section 707, Chapter 7, Title 17,

Delaware Code by redesignating it as Section 1803, Chapter 18, Title 2, Delaware Coe, and by striking the words "Department of Highways and Transportation" wherever therein appearing and substituting in lieu thereof the word "Department".

Section 13. Amend Section 708, Chapter 7, Title 17,

Delaware Code, by redesignating it as Section 1804, Chapter 18, Title 2, Delaware Code.

Section 14. Amend Section 709, Chapter 7, Title 17,

Delaware Code, by redesignating it as Section 1805, Chapter 18, Title 2, Delaware Code.

Section 15. Amend Section 710, Chapter 7, Title 17,

Delaware Code, by redesignating it as Section 1806, Chapter 18, Title 2, Delaware Code, and by substituting the word "Authority" for "Department of Highways and Transportation" therein.

Section 16. Amend Section 711, Chapter 7, Title 17,

Delaware Code, by redesignating it as Section 1807, Chapter 18, Title 2, Delaware Code, and by substituting the word "Authority" for "Department of Highways and Transportation" therein.

Section 17. Amend Chapter 14, Title 17, Delaware

Code, by redesignating Sections 1401 through 1411 as Sections 1808 through 1818, Chapter 18, Title 2, Delaware Code, and by substituting the word "Authority" for the word "Department" wherever therein appearing.

Section 18. Amend Chapters 1, 3, 4, 5, 7, 8, 9, 11,

12, 13, 14, and 15, Title 17, Delaware Code, by striking the words "Department of Highways and Transportation" wherever therein appearing and substituting in lieu thereof and the words "Department of Transportation".

Section 19. Amend Chapter 1, 3, 4, 5, 7, 8, 9, 11,

12, 13 and 14, Title 17, Delaware Code, by striking the words "Secretary of Highways and Transportation" wherever therein appearing and substituting in lieu thereof the words "Secretary of Transportation".

Section 20. Amend Section 2304, Chapter 23, Title 3, Delaware Code, by striking the words "Department of Highways and Transportation wherever therein appearing and substituting in lieu thereof the words "Department of Transportation".

Section 21. Amend Sections 4191 and 4193, Chapter

41, Title 7, Delaware Code, by striking the words "Department of Highways and Transportation" wherever therein appearing and substituting in lieu thereof the words "Department of Transportation".

Section 22. Amend Chapters 5, 48, and 68, Title 9,

Delaware Code, by striking the words "Department of Highways and Transportation" wherever therein appearing and substituting in lieu thereof the words "Department of Transportation".

Section 23. Amend Chapter 5, Title 21, Delaware

Code, by striking the words "Department of Highways and Transportation" wherever therein appearing and substituting in lieu thereof the words "Department of Transportation".

Section 24. Amend Sections 4504 and 4505, Chapter

45, Title 21, Delaware Code, by striking the words "Department of Highways and Transportation" wherever therein
appearing and substituting in lieu thereof the words "Department of Transporation".

Section 25. Amend Chapter 1, Title 2, Delaware

Code, by striking the words "Department of Highways and Transportation" and the words "Secretary of Highways and Transportation" and substituting in lieu thereof the words "Department of Transportation" and the words "Secretary of Transportation" respectively.

Section 26. Amend Chapter 9, Title 2, Delaware Code, by striking the words "Department of Highways and Transportation" wherever therein appearing and substituting in lieu thereof the words "Department of Transportation".

Section 27. Amend Chapter 17, Title 23, Delaware

Code, by striking the words "Department of Highways and Transportation" wherever therein appearing and substituting in lieu thereof the words "Department of Transportation".

Section 28. Amend Chapter 15 and 16, Title 2,

Delaware Code, by striking the word "Secretary" and the words "Highways and Transportation" wherever therein appearing and substituting in lieu thereof the words "Director" and the words "Transportation Authority" respectively.

Section 29. If any provision of this Act, or of any

rule, regulation, or order thereunder or the application of such provision to any person or circumstances, shall be held invalid, the remainder of this Act and application of such provisions of this Act or of such rule, regulation or order to persons or circumstances other than those to which it is held invalid, shall not be affected hereby.

Section 30. All other laws or parts of laws now in ef-

fect inconsistent with the provisions of this Act are repealed,
superseded, modified or amended so far as necessary to con-

form to, and give full force and effect to, said provisions.

Section 31. The effective date of this Act shall be

July 1, 1976.

Approved June 30, 1976