AN ACT ESTABLISHING AND CONCERNING A DEPARTMENT OF TRANSPORTATION, CONFERRING UPON IT CERTAIN DUTIES AND POWERS IN THE FIELD OF TRANSPORTATION, PROVIDING FOR THE CREATION OF LOCAL TRANSPORTATION AUTHORITIES AND CONFERRING UPON THEM CERTAIN POWERS AND DUTIES IN THE FIELD OF TRANSPORTATION: AND TRANSFERRING TO THE DEPARTMENT THE AERONAUTICAL COMMISSION AND MAKING A SUPPLEMENTARY APPROPRIATION THEREFOR.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. The designation of Title 2, Delaware Code, is changed from "Aeronautics" to "Transportation."
Section 2. Chapters 1 to 9, inclusive, Title 2, Delaware Code, are designated as Part I, Title 2,Delaware Code, with the caption "Aeronautics."
Section 3. §102, Title 2, Delaware Code, is amended by striking out the word "title" as it appears in the first line of §102 and inserting in lieu thereof the word "part."
Section 4. Subchapter II, Title 2, Delaware Code, is repealed.
Section 5. Title 2, Delaware Code, is amended by adding thereto a new section to read :
§ 130. Delaware Aeronautics Commission; Director of Aeronautics
(a) The Delaware Aeronautics Commission shall consist of 1 member who shall be the Secretary of Transportation.
(b) In addition to the powers conferred upon the Commission by this Part, the Secretary of Transportation, when acting as the Commission, shall also have all the powers conferred upon him by Part II of this title.
(c) The Secretary of Transportation may appoint a Director of Aeronautics who shall have such duties and powers as the Secretary may delegate to him.
Section 6. The words "each of its members" or "each Commissioner" or "any Commissioner" as they appear in Title 2, Delaware Code, are hereby stricken out of Title 2.
Section 7. Any members of the Delaware Aeronautics Commission whose term has not expired on the effective date of this Act shall continue to hold office until his term expires.
Section 8. Title 2, Delaware Code, entitled "Transportation" is amended by adding thereto a new Part to read :
CHAPTER 15. DEPARTMENT OF TRANSPORTATION
SUBCHAPTER I. DEFINITIONS, PURPOSE AND
§ 1501. Definitions
As used in this Part :
"Area" or "area of operation" means that part of this state for which a Local Transportation Authority shall be created.
"Department" means the Department of Transportation established herein.
"Issuing Officers" means the Chairman of the issuing Authority and the Secretary of State.
"Authority" means a local Transportation Authority organized in accordance with the provisions of chapter 16 of this title.
"Public Utility" means any person (as defined in Section 301 of Title 1) or his lessee, trustee, or receiver who operates within this State any railroad, railway, street railway, traction railway, motor bus, bus, electric trackless trolley coach, trolley or monorail for public mass transportation.
"Commissioner" means a Commissioner of a local Transportation Authority appointed pursuant to Chapter 16 of this title.
"Issuing Authority" means a local Transportation Authority organized in accordance with Chapter 16 of this title which has
decided to issue the bonds authorized by Chapter 16 of this title. "Secretary" means the Secretary of the Department of Transportation.
§ 1502. Purpose; construction
(a) It shall be 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 transportation ; to promote and supply an economical, efficient, integrated and balanced mass transportation system 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 transportation development and improvement in this State ; and to coordinate the mass transportation activities of State agencies, and other public agencies with mass transportation responsibilities within this State.
(b) The Department shall be responsible for the coordination of all mass transportation facilities within this State so as to obtain for the citizens of this State an economical, efficient and coordinated mass transportation system in accordance with the need in various parts of the State.
(c) Whenever the Department determines that a need for transportation services exists in a part of the 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 Department shall undertake to provide such services as soon as possible in the manner provided in this part.
(d) This part shall be construed according to the fair import 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 II. ORGANIZATION & ADMINISTRATION
§ 1512. Establishment of Department of Transportation
There shall be a Department of Transportation within the government of this State which shall consist of the Secretary of
Transportation and such other employees as may be *appointed by him.
§ 1513. Secretary of Department
The administrator and head of the Department shall be a Secretary of Transportation, who shall be known as the Secretary of Transportation, and who shall be a person qualified by training and experience to perform the duties of his office. The Secretary shall be appointed by the Governor, with the advice and consent of the Senate, and shall serve at the pleasure of the Governor and until the appointment and qualification of the Secretary's successor. The Secretary shall receive a salary not to exceed $25,000 per annum.
§ 1514. Director of Aeronautics
The Secretary may appoint a Director of Aeronautics in accordance with Part I of this title.
SUBCHAPTER III. JURISDICTION, POWERS AND DUTIES § 1521. Powers and duties
(a) The Secretary may:
(1) Develop, revise, and maintain a state comprehensive plan for the coordination, development and improvement of mass transportation. This shall be done in cooperation with the State Highway Department, any local or regional mass transportation agencies, including local Transportation Authorities created pursuant to this part, and in cooperation with and with the consent of the State Planning Office;
(2) Develop programs designed to foster efficient and economical public mass 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 be-
tween bus service and other forms of public transportation, particularly the commuter railroads ;
(5) Coordinate the mass transportation activities of the department and the local Transportation Authorities with those of public utilities, and public agencies ;
(6) Cooperate with intra or interstate commissions and authorities, county governing bodies, state departments, 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 airport facilities or other mass transportation facilities;
(7) Conduct public hearings on the need and economic feasibility of public mass transportation services in various parts of the State.
(8) Employ, in his discretion, 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 to fix their compensation.
(9) Make grants of funds upon such terms and conditions as the Secretary deems best to public utilities operating within this State to enable the utilities to furnish or continue or expand mass transportation service to the citizens of this State in an economical manner;
(10) Make payments to any local Transportation Authority out of funds appropriated to the Department by the General Assembly for any purpose consistent with providing public mass transportation services within the Authority's area of operations;
(11) Investigate any matters concerning any public utility operating a public mass 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 assistance and avail himself of the serv-
ices of such employees of any Federal or State agency as he may require and as may be available to him for said purpose.
(13) Delegate any of his powers and duties to committees and commissions, authorities 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 purposes of this chapter or to carry out any power or duty given in this Part.
(b) The Secretary shall:
(1) Make an annual report to the Governor and the General Assembly of the Department's operations, and render such other reports as the Governor shall from time to time request or as may be required by law;
(2) Organize the Department and establish therein such divisions as he may deem necessary and expedient. He may formulate and adopt rules and regulations and prescribe duties for the efficient conduct of the business, work and general administration of the Department, its officers and employees. In addition, the Secretary may delegate to subordinate division officers or employees in the Department such of his powers and duties as he may deem desirable, to be exercised under his supervision and direction; and
(3) Approve and join in on behalf of the State applications of local Transportation Authorities 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 Department. Any money so received may be expended by the local Transportation Authorities, subject to any limitations imposed in such grants, to effect any of the purposes of this chapter, as the case may be; and
(0) 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.
CHAPTER 16. LOCAL TRANSPORTATION AUTHORITIES
SUBCHAPTER I. GENERAL PROVISIONS
§ 1601. Creation of a Local Transportation Authority; Appointment of Commissioners; officers
(a) Whenever the Secretary shall have determined that there is a need for mass transportation in any part of this State, he shall issue to each appointing officer named in this section a certificate of such determination, describing the area of operation of the proposed authority, and as soon as possible thereafter a Local Transportation Authority shall be created by the appointment of 5 Commissioners who shall constitute the Authority.
(b) The Commissioners shall be residents of the area in which the Authority operates, and shall be appointed as follows:
(i) three by the Governor for terms of 1, 2 and 3 years, respectively;
one by the County Government of the County in which the total or major area of operations of the mass transit system is to be located for a period of 2 years ; and
() one by the Mayor of the most populous incorporated city or town in the area of operation as shown by the last Federal decennial census, for a term of 1 year.
(c) Appointments by the New Castle County Government shall be made by the County Executive of New Castle County and appointments by the Kent and Sussex County Governments shall be made by the respective Levy Courts thereof.
(d) Three Commissioners shall be members of one of the 2 major political parties and 2 Commissioners shall be members of the other major political party. Of the three Commissioners appointed by the Governor, no more than 2 shall belong to the same major political party.
(e) The Governor shall designate one of his appointees as chairman. The Authority shall select its other officers.
§ 1602. Filing of certificate of appointment; vacancy
(a) Forthwith upon the appointment of the original Commissioners, the Secretary and the appointing officers shall ex-
ecute and file or cause to be filed in the office of the Secretary of State a certificate stating that such appointments have been duly made and setting forth the area of operation of the Authority and the names and term of office of each Commissioner. Such certificate shall be conclusive evidence of the due and proper creation of the Local Transportation Authority.
(b) Each appointing officer shall execute and file or cause to be filed in the office of the Secretary of State a certificate with respect to each appointment of a successor Commissioner stating the fact of such appointment and setting forth the name of the successor Commissioner and his term of office.
(c) The Governor, the County Government and the Mayor, respectively, shall appoint successors to Commissioners appointed by them or by their respective predecessors in office. Each successor Commissioner shall be appointed to hold office in the case of a vacancy for the unexpired term, or in the case of expiration for a term of 3 years or until his successor shall have been appointed and qualified.
§ 1603. Removal of Commissioner
The Governor may remove a Commissioner of an Authority for official misconduct, neglect of duty or incompetence, but only after the Commissioner shall have been given a copy of the charges against him and an opportunity to be heard in person or by counsel in his own defense. Pending the determination of the charges against the Commissioner, the Governor may suspend him from office. A copy of the charges and the result of the hearing shall be forwarded to the Secretary.
§ 1604. Oath; quorum; compensation of Commissioners
(a) Before entering upon the duties of the office, each Commissioner of an Authority shall take and subscribe the oath or affirmation prescribed in the Constitution. Such oath or affirmation shall become one of the records of the Authority.
() A majority of the Commissioners of an Authority shall constitute a quorum. A majority of the Commissioners present at any meeting constituting a quorum shall be sufficient for any action by the Authority.
(c) The Commissioners of an Authority shall receive their actual expenses incurred while engaged in the affairs of the Authority but shall receive no other remuneration.
§ 1605. Extension of area
Whenever the Secretary determines that there is need for additional mass public transportation in any part of this state he may, in order to meet this need, extend the area of operations of an existing Local Transportation Authority beyond its existing limits, or direct the creation of a new Authority.
§ 1606. Powers of a Local Transportation Authority
A Local Transportation Authority shall be a subdivision of the State exercising public powers and having all powers necessary or convenient to carry out and effectuate the provisions of this Chapter for providing a public mass transportation system within its area of operations. It may:
(1) develop plans and programs designed to foster efficient and economical public mass transportation services ;
(2) acquire, purchase, hold, use and dispose of any property, real and personal, tangible or intangible, or any interest therein necessary or desirable for carrying out the purposes of this part, and lease as lessor or lessee any property, real or personal, or any interest therein for such terms and at such rental as the Authority may deem fair and reasonable ;
(3) employ, in its discretion, planning, architectural, and engineering consultants, attorneys, accountants, construction, financial, transportation and traffic experts and consultants, superintendents, managers and other such officers, employees and agents as may be necessary in its judgment, and fix their compensation;
(4) acquire in the name of the Authority, by negotiated purchase or otherwise, on such terms and conditions and in such manner as it may deem proper, or by the exercise of the power of eminent domain in accordance with Chapter 61, Title 10, such private lands, rights-of-way, equipment, real estate, property rights, easements, franchises and interests as it may deem necessary for carrying out the provisions of this Part;
(5) contract with any county, municipality, authority, public or private company or person, whereby the Authority will receive a subsidy to expand or avoid discontinuance of service ;
(6) avail itself of the services of employees of any Federal or State agencies as it may require;
(7) construct, acquire, maintain and operate such public mass transportation systems as it deems to be in the public interest;
(8) contract with any governmental body, unit or subdivision, county municipality, authority, or person whereby the Authority will operate or aid in the operation, development or improvement of any transit system;
(9) organize, own or purchase stock in any corporation created to operate mass transportation systems in the area of public mass transportation;
(10) apply for and accept and use grants or other assistance from the Federal government or any agency thereof, this State or any other source and comply with any terms and conditions of such grant or assistance ;
(11) receive and expend such sums of money as it may receive from the Department, from private persons and corporations, from municipalities and political subdivisions of this State, from fares generated by any public mass transportation system which it may operate, or from any other source;
(12) adopt a seal; and
(13) fix from time to time, after a public hearing, and without approval of the Public Service Commission or any other State agency, schedules, routes, rates of fares and charges for services furnished or operated by the Authority pursuant to this Part.
§ 1607. Veto power of Secretary
The powers set forth in paragraphs 10 and 13 of section 1606 of this title shall be exercised by an Authority only with the prior consent of the Secretary.
§ 1608. Conflict of interest prohibited
No Commissioner or employee of an Authority shall be in the employ of, or own any stock in, or be in any way directly or indirectly pecuniarily interested in any public utility, nor shall any Commissioner personally or through a partner or agent render any professional service or make or perfom any business contact with or for any such public utility ; nor shall any Commissioner, directly or indirectly, receive a commission, bonus, discount, present or reward from any such public utility.
§ 1609. Exemption from certain laws
The provisions of Part V and VI, Title 29, and Chapter 1, Title 26, shall not apply to a Local Transportation Authority.
§ 1610. Audit
(a) The books, records and accounts of a Local Transportation Authority shall be audited annually by a certified public accountant licensed to practice in this State.
(b) The Auditor of Accounts may also audit the books, records and accounts of an Authority.
§ 1611. Exemption from taxation
All facilities owned or operated by a Local Transportation Authority and all property acquired or used by an Authority in connection therewith shall at all times be free from all taxation within this State.
§ 1612. Budget; request for aid; appropriation
(c) Each Authority created pursuant to this chapter shall prepare before September 1 of each year, a budget for the next fiscal year (which shall commence on the following July first).
(d) In the event that an Authority seeks any grant or subsidy from the State for operational expenses for the next fiscal year, or to make up operating deficits for prior fiscal years, it shall submit its proposed budget and request for financial aid to the Secretary prior to September 1. The Secretary shall then review the request for financial aid and shall submit to the Budget
Director of the State, for inclusion in the Budget Appropriation Bill, a request for State financial aid in the amount that the Secretary deems desirable and necessary.
(c) All sums appropriated by the General Assembly as aid to an Authority shall be appropriated to the Secretary who shall then allocate the sums to the Authorities.
§ 1613. Collective bargaining; arbitration
(a) A Local Transportation Authority shall have authority to bargain collectively with labor organizations representing employees and may enter into agreements with such organizations relative to wages, salaries, hours, working conditions, health benefits, pensions and retirement allowances of such employees.
() In the case of any labor dispute between an Authority and its employees where collective bargaining does not result in a settlement, the same may be submitted at the written request of either party to final and binding arbitration pursuant to the provisions of any agreement entered into between the Authority and the employees so providing, or in the absence of such provisions, with the written consent of both parties, to an Arbitration Board composed of 3 persons, one appointed by the Authority, one appointed by the labor organization representing the employees and a third member to be agreed upon by the Authority and the labor organization or, if no such third member is mutually acceptable, selected from a list of 5 persons, to be furnished by the American Arbitration Association at the request of either party, by alternately striking one name until only one name remains.
(a) The determination of the majority of the Board of Arbitration thus established shall be final and binding on all matters in dispute.
(b) No employee of a Local Transportation Authority shall strike while in the performance of his official duties.
§ 1614. Take over of existing facilities; other employee protective arrangements
A Local Transportation Authority may enter into an agree-
ment specifying fair and equitable arrangements to protect the interests of employees who may be affected if the Authority should acquire any interest in or purchase any facilities or other property of a private mass transportation company, or construct, improve or reconstruct any such facilities or other such property acquired from any such company, or provided by contract or otherwise for the operation of mass transportation facilities or equipment in competition with, or supplementary to the service provided by an existing mass transportation company. Such agreement may specify that the terms and conditions of the protective arrangements shall comply with any applicable requirements of Chapter 8, Title 19, or with the requirements of any Federal law or regulation if Federal aid is involved. Such an agreement may provide for arbitration of disputes pursuant to Section 1613 of this title.
CHAPTER II. BORROWING
§ 1631. Reven
The Issuing Officers may issue, in the name of the State of Delaware, revenue bonds of the State, payable solely from the revenues of the Issuing Authority for the purpose of paying the cost of acquisition and operation of any facility which the Issuing Authority may acquire or commence under the provisions of this Part.
§ 1632. Form and terms of bonds; disposition of proceeds
(a) All bonds issued under the authority of this subchapter shall be dated, shall bear interest at such rate or rates, not exceeding 6 percentum per annum, payable semi-annually, shall mature at such time or times and may be made redeemable before maturity at such times and at such price or prices and under such terms and conditions as may be fixed by the Issuing Officers prior to the issuance of the bonds. The principal of and the interest upon such bonds may be made payable in any lawful medium. The Issuing Officers 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. Both principal of and interest on the bonds shall be payable at the Farmers Bank of the State of Delaware, at Dover.
(b) The bonds shall be signed by the Chairman of the Issuing Authority and the Great Seal of the State or a facsimile thereof shall be affixed thereto, and shall be attested by the Secretary of State. The facsimile signature of the Secretary of State may be engraved or printed on such bonds. Any coupons attached thereto shall bear the facsimile signature of the Chairman of the Issuing Authority. In case any officer whose signature or facsimile thereof shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or facsimile shall, nevertheless, be valid for all purposes, the same as if he had remained in office until delivery.
() All bonds issued under the provisions of this subchapter shall have, and are declared to have, all the qualities and incidents of negotiable instruments under the Uniform Commercial Code.
(b) Such bonds and the income therefrom shall be exempt from all taxation by the State of Delaware or by any political subdivision, agency or authority thereof.
(c) The bonds may be issued in coupon or registered form, or both, as the Issuing Officers may determine, and provision may be made for the registration of any coupon bond as to principal alone or as to both principal and interest, and for the reconversion of any bonds registered both as to principal and interest into coupon bonds.
(b) The Issuing Officers may sell such bonds either at public or private sale in such manner and for such price as they may determine to be for the best interests of the State, but no such sale may be at a price so low as to require the payment of interest on money received therefor at more than 6 percentum per annum, computed with relation to the absolute maturity of the bonds in accordance with standard tables of bond values.
(b) The proceeds of such bonds, exclusive of accrued interest, shall be used solely for the purposes specified in the resolution of the Issuing Officers authorizing the issuance thereof, or as set forth in the indenture securing their payment, which purposes may include redemption premiums, interest on bonds to be refunded to the redemption date or date of maturity thereof
and all legal and other expenses of their issuance, and shall be disbursed under such restrictions, if any, as said resolution or trust indenture may provide.
(h) The proceeds of such bonds shall at no time revert to the General Fund of the State Treasury but shall at all times be available to the Issuing Authority for the aforesaid purposes; provided, however, that if the proceeds of the bonds of any issue shall exceed the amount required for the purpose or purposes for which such bonds are authorized to be issued, the surplus may be used for any purpose of the Issuing Authority authorized in this subchapter or for the payment of the principal of or interest on its outstanding bonds.
(i) Prior to the preparation of definitive bonds the Issuing Officers may issue temporary bonds with or without coupons, exchangeable for definitive bonds upon the issuance of the latter. The Issuing Officers may also provide for the replacement of any bond which shall become mutilated or be destroyed or lost. Such bonds may be issued without any other proceedings or the happening of any other conditions or things than those proceedings, conditions and things which are specified and required by this subchapter.
§ 1633. Bonds as legal investments for institutions and fiduciaries, and as legal deposit
Bonds issued under the authority of this subchapter are made securities in which all State and municipal officers and administrative departments, boards and commissions of the 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, guardians, trustees, and other fiduciaries, and all other persons whatsoever who now or may hereafter be authorized to invest in bonds or other obligations of the State, may properly and legally invest any funds, including capital belonging to them or within their control; and such bonds are made 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 hereafter be authorized by law.
§ 1634. Credit of state not pledged
Bonds issued under the provisions of this subchapter shall be payable exclusively from the revenues of the Issuing Authority and shall contain a statement on their face that this State shall not be obligated to pay the bonds or the interest thereon except from such revenues, and that the faith and credit of this State are not pledged to the payment of the principal or interest on such bonds. The issuance of bonds under the provisions of this subchapter shall not directly or indirectly or contingently obligate this State to levy or pledge any form of taxation whatever therefor or to make any appropriation for their payment.
§ 1635. Trust indenture
(a) In the discretion of the Issuing Officers, each and any issue of such bonds may be secured by a trust indenture by and between the Issuing Officers and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the State.
(b) Such trust indenture may pledge or assign the revenues of the Issuing Authority but shall not create a security interest in or convey or mortgage any property owned, operated or maintained by the Issuing Authority. Either the resolution providing for the issuance of the bonds or such trust indenture 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 covenants setting forth the duties of the Issuing Authority in relation to the acquisition, construction, improvement, maintenance, operation, repair and insurance of any facilities 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 such depository and to furnish such indemnifying bonds or to pledge such securi-
ties as may be required by the Issuing Authority. Such indenture may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action of bondholders as is customary in trust indentures securing bonds and debentures of corporations.
(d) In addition to the foregoing, such trust indenture may contain such other provisions as Issuing Officers may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust indenture may be treated as part of the cost of maintenance, operation and repairs of any facility to which such indenture is related or may be paid out of the revenues of the Issuing Authority.
§ 1636. Remedies of bondholders and trustees
(a) Any holder of bonds issued under the provisions of this subchapter or any of the coupons attached thereto, and the trustee under the trust indenture, if any, except to the extent the rights given by this subchapter may be restricted by resolution passed before the issuance of the bonds or by the trust indenture, may, either at law or in equity by suit, action, mandamus, or other proceedings protect and enforce any and all rights under the laws of the United States or of the State of Delaware or granted under this subchapter or under such resolution or trust indenture, and may enforce and compel performance of all duties required by this subchapter, or by such resolution or trust indenture, to be performed by the Issuing Authority or any officer thereof, including the fixing, charging and collecting of fares or charges for the use of any facility operated by the Issuing Authority.
() Such resolution or trust indenture may contain provisions under which any holder of such bonds or the trustee under such trust indenture shall be entitled to the appointment of a receiver in the event of a default, and any receiver so appointed shall have and be entitled to exercise all the rights and powers of the Issuing Authority with respect to the facilities operated or maintained by the Issuing Authority and all of the appropriate rights and powers of a receiver in equity.
§ 1637. Power to collect and pledge fares and revenues; fixation of fares, rates or charges
(a) The Issuing Officers may make and enforce such rules and regulations and establish, levy and collect (or authorize by contract, franchise, lease or otherwise, the establishment, levy and collection of) such fares, rents, rates and other charges for the use of any facility operated by the Issuing Authority or any improvements or extensions thereof as it may deem necessary, proper, desirable and reasonable, and the Issuing Officers pledge such fares, rates, rents and other revenue, or any part thereof, either presently received or to be received in the future, or both, as security for the repayment with interest of any moneys borrowed by them or advanced to them and as security for the satisfaction of any other obligation assumed by them under the authority of this subchapter.
() Such fares, rates, rents and other charges shall be so fixed and adjusted so as to provide funds at least sufficient, together with any other revenues of the Issuing Authority to pay the cost of maintaining, repairing and operating the facilities operated and maintained by the Issuing Authority, and the principal of and the interest upon the outstanding revenue bonds of the Department, subject however, to any applicable law or regulation of the United States of America now in force or enacted or made hereafter. Such fares and all other revenues of the Issuing Authority shall not revert to the General Fund of this State but shall at all times be available to the Issuing Authority for the purpose set forth in this Part. Such fares, rates, rents or other charges shall not be subject to supervision or regulation by any other commission, board, bureau or agency of the State.
§ 1638. Moneys as trust funds
All moneys received pursuant to the authority of this subchapter, whether as proceeds from the sale of bonds, or grants or other contributions, or as fares and revenues, shall be deemed to be trust funds, to be held and applied solely as provided in this subchapter. The Issuing Officers shall, in the resolution authorizing the issuance of bonds or in the trust indenture, provide for the payment of the proceeds of the sale of the bonds and the fares and revenues to be received, to any officer, agency, bank or
trust company, who shall act as trustee of such funds, and shall hold and apply the same to the purposes of this subchapter, subject to such regulations as this subchapter and such resolution or trust indenture may provide.
§ 1639. Short term financing
The Issuing Officers may, without the issue of bonds as authorized by this subchapter, pledge, encumber, mortgage or create a security interest in any assets of the Issuing Authority as security for loans to the Issuing Authority in order to enable it to acquire, initiate, operate and improve transportation facilities.
Section 9. The sum of $50,000 is appropriated to the Department of Transportation established herein for the fiscal year ending June 30, 1968, for the purposes of this Act.
Section 10. This Act is a supplementary appropriation and the money appropriated shall be paid by the State Treasurer out of funds in the General Fund of the State of Delaware, not otherwise appropriated.
Section 11. If any provision of this Act or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
Section 12. The appropriation made to the Department of Transportatin herein shall not revert to the General Fund of this State until June 30, 1969.
Section 13. The General Assembly determines that there is reasonable grounds to believe that the public mass transportation service now supplied by the Delaware Coach Company in New Castle County may soon cease to be furnished or may be drastically reduced and that adequate public mass transportation is an economic and social necessity for the people of this State. The General Assembly therefore finds and declares that this Act deals with an acute emergency.
Approved May 1, 1968.