[Congressional Record Volume 144, Number 100 (Thursday, July 23, 1998)]
[Senate]
[Page S8923]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SPECTER (for himself and Mr. Santorum):
  S. 2350. A bill to clarify the application of toll restrictions to 
Delaware River Port Authority bridges; to the Committee on the 
Judiciary.


          delaware river port authority compact clarification

 Mr. SPECTER. Mr. President, I introduce noncontroversial 
legislation which is essential to the ability of the Delaware River 
Port Authority to raise funds in the bond markets. Specifically, this 
bill clarifies that the 1987 law which repealed the thirty-year limit 
on bridge toll collection set by the General Bridge Act of 1946 also 
applies to the Delaware River Port Authority's bridges in Southeastern 
Pennsylvania and Southern New Jersey. It is arguable that this 
legislation is not necessary and that a court would construe the 1987 
law in the Port Authority's favor. However, to assure certainty for the 
financial markets and entities considering purchasing bonds issued by 
the Port Authority, I believe it is worthwhile for Congress to adopt 
legislation making this technical clarification.
  By way of background, for many years, federal regulations governed 
the collection of tolls on bridges throughout the nation. Then, in the 
1987 highway bill, congress repealed section 506 of the 1946 General 
Bridge Act which imposed a 30-year time limit on the collection of 
tolls. The bridges owned and operated by the Delaware River Port 
Authority, however, are governed by a 1952 public law by which Congress 
ratified the Pennsylvania-New Jersey compact establishing the Port 
Authority. Section 3 of that public law provided that the Port 
Authority's bridges were expressly exempt from the 30-year limit of the 
General Bridge Act and were instead subject to a 50-year limit on the 
collection of tolls.
  A strong case could be made that any existing statutory limit on the 
Port Authority was implicitly repealed by the 1987 highway bill because 
the limit in the 1952 compact legislation was drafted as an exception 
to a law that is no longer in effect (i.e., Section 506 of the General 
Bridge Act of 1946). However, since the 1952 Port Authority provision 
has not been technically repealed, I am proposing legislation to 
correct this oversight.
  The legislative history of the Section 3 of the Port Authority 
compact legislation also suggests that the 50-year toll-collection 
limit should no longer apply. Instead of having a lesser restriction 
than the 30-year limit, as was intended by Congress, if the 50-year 
limit were enforced, the Port Authority would be subject to a more 
stringent limitation on toll collection than all other American 
bridges. Accordingly, I believe that my legislation is consistent with 
the intent behind the 1987 highway law to deregulate the collection of 
tolls nationwide.
  The Port Authority is authorized to pledge its revenue, including 
that from tolls, to secure debts. To obtain financing for future 
economic development and to preserve the bridges it owns and operates, 
the Port Authority must have a guaranteed revenue stream. Although a 
court very likely would rule that the fifty-year limit on toll 
collection was implicitly repealed by the Highway Act of 1987, without 
direct legislation to that effect, the Port Authority's bond counsel 
suggests it will be unable to borrow in the financial markets.
  The importance of ensuring this borrowing ability is reflected in the 
Port Authority's essential role in the economic development of 
Southeastern Pennsylvania and Southern New Jersey. The Port Authority 
owns and operates the Benjamin Franklin, Betsy Ross, Commodore Barry, 
and Walt Whitman bridges as well as the mass transit PATCO High Speed 
Line. The Port Authority is involved in port unification through 
another of its subsidiaries, the Port of Philadelphia and Camden. 
Finally, the Port Authority has been instrumental in regional 
development and the commercial revitalization of the Philadelphia-
Camden waterfront. Its programs include the addition of public 
attractions at Penns Landing and the Camden Aquarium as well as low-
interest loans to expand Philadelphia's American Street Enterprise 
Zone.
  Given the importance of revitalizing the Delaware River region, I 
urge my colleagues to support this legislation.

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