PA TURNPIKE COMMISSION POLICY

Transcription

1 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 1.01 APPROVAL DATE: EFFECTIVE DATE: Administration of PTC Policies Executive Office REVISED DATE: A. PURPOSE: This policy letter governs the development, review process, approval process and maintenance of all policy letters within the Pennsylvania Turnpike Commission. B. SCOPE: This policy applies to all PTC policy letters to be developed or in effect throughout the organization. C. GENERAL POLICY: The Chief Operating Officer or designee is responsible for ensuring policy letters are accurate and relevant. Departments are responsible for establishing written policies and associated procedures for their areas of responsibility. All policy letters require the formal approval of the Commission prior to implementation. The Chief Operating Officer and the Chief Executive Officer will review all policy letters prior to submission for approval. All Substantive Changes to a policy will require the approval of the Chief Operating Officer, the Chief Executive Officer and the Commission while Administrative Changes may be made by the Chief Operating Officer or designee at any time without additional approval. The process established to facilitate the approval of policy letters can be found in the supporting document Process for Creating, Updating and Maintaining PTC Policies. D. DEFINITIONS: Policy - A policy outlines and identifies what needs to be done. It is a high level statement of an objective or course of action to influence and determine business decisions or actions by the PTC. Procedure- A procedure outlines and describes how to do what needs to be accomplished. It establishes a process to be followed in order to provide direction for following a policy or to ensure our actions comply with the policy. Substantive Change- A change that has a material effect on the objective of the policy. [1]

2 Administrative Change- A change that has immaterial effect on the objective of the policy such as address, position title, department name, department re-structuring, etc. E. PROCEDURES: The Chief Operating Officer or designee will work with the department sponsor to establish new policy letters when appropriate, revise current policy letters to ensure accuracy, and maintain a review schedule to provide any required updates to existing policy letters. A Policy Committee comprising the Chief Operating Officer or designee and representatives from the Compliance, Human Resources, Policy and Legal Departments will review all proposed new policies and Substantive Changes to existing policies to determine potential impact upon applicable standards, existing policies, federal and/or state regulations, etc. prior to being submitted for approval. The Director of Policy& External Affairs shall serve as the Chair of the Committee. The Chief Operating Officer or designee will maintain the document Process for Creating, Updating and Maintaining PTC Policies to support the policy letter processes and ensure its accuracy. All policies shall be posted to the PTC intranet. All PTC policies will undergo annual review by the department sponsor to ensure relevance and accuracy. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

3 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.01 APPROVAL DATE: EFFECTIVE DATE: Americans with Disabilities Amendments Act Office of Diversity and Inclusion REVISED DATE: A. PURPOSE: Title 1 of the Americans with Disabilities Act of 1990 (ADA), as amended by the Americans with Disabilities Act Amendment Act (ADAAA), makes it illegal to discriminate against a qualified person with a disability. Employers are required to reasonably accommodate the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or employee, unless otherwise doing so would impose an undue hardship on the operation of the employer s business. It is also unlawful to retaliate against an individual for opposing employment practices that discriminate based on disability. In accordance with Title I, this policy is issued to reaffirm the policy and procedure(s) of the Pennsylvania Turnpike Commission (also referred to as the Commission ) on the issue of the ADAAA and to inform all personnel of their duties and responsibilities with regard to this subject. B. SCOPE: This policy letter applies to all job applicants and all employees of the Commission, at every level. It provides information and guidelines relating to the Commission s policy on ADAAA requests for reasonable accommodation and procedures for reporting and handling complaints of violations of the policy. C. GENERAL POLICY: The ADAAA prohibits discrimination in all aspects of employment against a qualified individual with a disability who can perform the essential functions of the job, with or without reasonable accommodation. The ADAAA also prohibits employers from retaliating against an applicant or employee for asserting his/her rights under the ADAAA. Discrimination based upon disability is prohibited by both state and federal law and is also prohibited by the Pennsylvania Turnpike Commission s Equal Opportunity Policy. The Commission will make every practical effort to provide reasonable accommodation whenever [1]

4 necessary for all employees or applicants with disabilities, provided that the individual is otherwise qualified to safely perform the essential functions of the job and provided that any accommodation made does not present an undue hardship to the Commission. Generally, it is the obligation of the employee or applicant with a disability to request a reasonable accommodation or to indicate that s/he has a disability that is preventing him or her from accomplishing the essential functions of the job. Upon request, the Office of Diversity and Inclusion will work with the employee or job applicant to identify: (1) whether the employee/job applicant is a qualified individual with a disability and (2) whether a reasonable accommodation may be available to assist the employee/job applicant to perform the essential functions of the job. The Commission s policy of nondiscrimination applies to all personnel and employment practices including: 1. Hiring, recruitment or recruitment advertising 2. Training 3. Promotion or transfer 4. Compensation 5. Layoff or termination 6. Disciplinary action 7. Evaluations 8. Medical exams 9. Leave 10. Benefits 11. Relationship or association with a disabled person It is also a violation of Commission policy for any employee to subject customers or visitors to Commission facilities to discrimination based upon disability. D. DEFINITIONS: 1. A qualified individual with a disability refers to an individual with a disability who, with or without reasonable accommodation, can perform the essential functions of the employment position that such individual holds or desires. 2. The terms essential functions refers to the fundamental job duties of the employment position that the individual with a disability holds or desires. This term does not include marginal functions of the position. 3. The term disability refers to a physical or mental impairment that substantially limits one or more major life activities of an individual, a record of such impairment, or being regarded as having such an impairment. Individuals covered only under the regarded as prong are not entitled to reasonable accommodation if no actual disability exists. [2]

5 4. The determination of whether a person has an ADAAA disability will not take into consideration whether the person is substantially limited in a major life activity when using a mitigating measure other than ordinary eyeglasses or contact lenses. 5. Major life activities may include, but are not limited to, such functions as caring for oneself, performing manual tasks, walking, seeing, hearing, eating, sleeping, speaking, breathing, learning, reading, bending, communicating, thinking, sitting, reaching, interacting with others, and major bodily functions such as functions of the immune system, normal cell growth, digestive, bowel, bladder, neurological, brain, respiratory, circulatory, endocrine, hemic, lymphatic, musculoskeletal, special sense organs and skin, genitourinary, cardio vascular systems, and reproductive functions. 6. The term substantially limits refers to an impairment that prohibits or significantly restricts an individual s ability to perform a major life activity as compared to the ability of the average person in the general population to perform the same activity. An impairment that is episodic or in remission is a disability if it would substantially limit a major life activity when active. 7. Undue hardship refers to an action requiring significant difficulty or expense, when considered in the light of factors set forth by the ADAAA. E. PROCEDURES: 1. Any employee, including but not limited to a manager, supervisor, or chief/director, who acts in violation of this policy shall be subject to discipline up to and including suspension or termination. 2. Supervisory personnel have the responsibility to insure that this policy is adhered to and shall take whatever action is necessary to insure that none of their subordinates engage in prohibited behavior. 3. Any employee who feels that he or she has been harassed or discriminated against based on his or her disability is encouraged to keep a record of the employee(s) involved; the time, date and place of the incident(s); the nature of the alleged harassment or discrimination; and the identity of any witness(es). 4. Any employee who feels that he or she has been harassed or discriminated against based on disability, including but not limited to the conduct detailed in this policy, should immediately bring the problem to the attention of his or her immediate supervisor. An employee may also report the problem directly to the Office of Diversity and Inclusion. 5. Supervisory personnel will take all steps necessary to insure that all alleged harassing or discriminatory behavior is addressed in a timely and confidential manner when such behavior is brought to their attention, either officially or unofficially. 6. All complaints will be investigated in a timely and confidential manner. In no event will information concerning a complaint be released to a third party (except as required by the [3]

6 Pennsylvania Human Relations Commission, Equal Employment Opportunity Commission or as otherwise required by law) with the following exceptions: i. Appropriate supervisors and managers may be informed regarding restrictions on the work or duties of disabled employees and any accommodations that have been made. ii. If the condition requires emergency treatment, first aid and safety personnel may be informed. The Commission will use its best efforts to prevent discussion of the information outside the investigation and will instruct parties involved in the investigation not to discuss the matter expect when necessary. 7. Investigation of a complaint will normally include conferring with the parties involved and any named or apparent witness(es). Employees shall be guaranteed a fair and impartial investigation. All employees shall be protected from coercion, intimidation, retaliation, interference or discrimination for filing a complaint or assisting in an investigation. 8. If the investigation results in sufficient evidence to substantiate a complaint, the Commission will address the policy violation in a timely manner and will take appropriate disciplinary action necessary to prevent a recurrence, up to and including suspension or termination. 9. If the employee who complains of harassment or discrimination is not satisfied with the response from his or her immediate supervisor, or if that supervisor is perceived to be involved in the harassing or discriminatory behavior, the employee should bring the matter to the attention of the person who is next in line in the chain of command or to the Office of Diversity and Inclusion which will promptly investigate all complaints as set forth above. Complaints may be filed with the Office of Diversity and Inclusion: The Pennsylvania Turnpike Commission Office of Diversity and Inclusion P.O. Box Harrisburg, Pennsylvania (717) (Within 90 days of the incident) The determination of the Office of Diversity and Inclusion shall represent the final decision of the Pennsylvania Turnpike Commission on the issue raised by the employee who complains of harassment or discrimination based on disability. 10. If any employee who complains of harassment or discrimination based on disability is not satisfied with the results or recommendations of the Pennsylvania Turnpike Commission s internal findings, he or she may forward the complaint to the agencies listed below: PA Human Relations Commission: ( [4]

7 Harrisburg Regional Office Office Pittsburgh Regional Office 333 Market Street 301 Fifth Avenue Harrisburg, PA Suite 390, Piatt Place (717) (Voice) Pittsburgh, Pennsylvania (717) (TTY) (412) (Voice) (412) (TTY) Philadelphia Regional Office 110 North 8th Street Suite 501 Philadelphia, Pennsylvania (215) (Voice) (215) (TTY) (Within 180 days of incident) Equal Employment Opportunity Commission: Philadelphia District Office Pittsburgh Area Office 801 Market Street 1000 Liberty Avenue Suite 1300 Suite 1112 Philadelphia, PA Pittsburgh, PA (800) (Voice) (800) (Voice) (800) (TTY) (412) (TTY) (Within 300 days of incident) This Policy Letter supersedes all previous Policy Letters on this subject. [5]

8 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.02 APPROVAL DATE: EFFECTIVE DATE: Equal Employment Opportunity Office of Diversity and Inclusion REVISED DATE: A. PURPOSE: Title VII of the Civil Rights Act of 1964 prohibits discrimination in hiring, firing, promotions, wages, job assignments, fringe benefits and other terms and conditions of employment on the basis of race, color, religion, sex or national origin. In accordance with Title VII, this policy is issued to reaffirm the policy and procedure(s) of the Pennsylvania Turnpike Commission (also referred to as the Commission ) on the issue of equal employment opportunity and to inform all personnel of their duties and responsibilities with regard to this subject. B. SCOPE: This policy letter applies to all job applicants and all employees of the Pennsylvania Turnpike Commission, at every level. It provides information and guidelines relating to the Commission s policy on equal opportunity and procedures for reporting and handling complaints of violations of the policy. C. GENERAL POLICY: It is the policy of the Pennsylvania Turnpike Commission to provide equal employment opportunity to all qualified persons regardless of race, color, religious creed, ancestry, union membership, age, sex, sexual orientation, marital status, national origin, political affiliation or support, AIDS or HIV status, disability, or genetic information. Consistent with this policy, the commitment of the Pennsylvania Turnpike Commission is to: 1. Recruit, hire, train, promote, and compensate persons in all job classifications without regard to race, color, religion, marital status, disability or handicap, national origin, age, sex, sexual orientation, political affiliation or support, or genetic information. [1]

9 2. Develop and implement sound administrative policy, which will ensure that management decisions affecting program operations, services provided, and employment practices are consistent with this policy. 3. Ensure that all matters affecting pay, benefits, transfers, Commission sponsored training, education, tuition assistance, social and recreational programs are administered consistently with the scope, purpose and objectives of the Equal Opportunity Plan. 4. Maintain a work atmosphere that is free from unlawful forms of discrimination, reprisal, intimidation, harassment, or retaliation of any employee based on such attributes as race, color, religious creed, ancestry, union membership, age, sex, sexual orientation, marital status, national origin, political affiliation or support, AIDS or HIV status, disability, or genetic information. 5. Ensure that reasonable accommodations will be made for the physical or mental limitations of an applicant or employee. D. DEFINITIONS: 1. The term discrimination refers to the denial of employment or employment opportunities because of race, color, religious creed, ancestry, union membership, age, sex, sexual orientation, marital status, national origin, political affiliation or support, AIDS or HIV status, disability, or genetic information. 2. The term harassment refers to behavior that ridicules, denigrates and/or is physically abusive of an employee because of race, color, religious creed, ancestry, union membership, age, sex, sexual orientation, marital status, national origin, political affiliation or support, AIDS or HIV status, disability, or genetic information. E. PROCEDURES: 1. Any employee, including but not limited to a manager, supervisor, or chief/director, who acts in violation of this policy, shall be subject to discipline up to and including suspension or termination. 2. Supervisory personnel have the responsibility to insure that this policy is adhered to and shall take whatever action is necessary to insure that none of their subordinates engage in sexually harassing or discriminatory behavior. 3. Any employee who feels that he or she has been harassed or discriminated against is encouraged to keep a record of the employee(s) involved; the time, date and place of the incident(s); the nature of the alleged harassment or discrimination; and the identity of any witness(es). [2]

10 4. Any employee, who feels that he or she has been harassed or discriminated against, including but not limited to the conduct detailed in this policy, should immediately bring the problem to the attention of his or her immediate supervisor. An employee may also report the problem directly to the Office of Diversity and Inclusion within 90 days of the incident. 5. Supervisory personnel will take all steps necessary to promptly investigate and address any alleged harassing or discriminatory behavior by any of their subordinates when such behavior is brought to their attention, either officially or unofficially. 6. All complaints will be investigated in a timely and confidential manner. In no event will information concerning a complaint be released to a third party (except as required by the Pennsylvania Human Relations Commission, Equal Employment Opportunity Commission or as otherwise required by law). The Commission will use its best efforts to prevent discussion of the information outside the investigation and will instruct parties involved in the investigation not to discuss the matter. 7. Investigation of a complaint will normally include conferring with the parties involved and any named or apparent witness(es). Employees shall be guaranteed a fair and impartial investigation. All employees shall be protected from coercion, intimidation, retaliation, interference or discrimination for filing a complaint or assisting in an investigation. 8. If the investigation reveals that the complaint is valid, the Commission will address the policy violation in a timely manner and will take the appropriate disciplinary action necessary to prevent a recurrence, up to and including suspension or termination. 9. If the employee who complains of harassment or discrimination is not satisfied with the response from his or her immediate supervisor, or if that supervisor is perceived to be involved in the harassing or discriminatory behavior, the employee should bring the matter to the attention of the person who is next in line in the chain of command or to the Office of Diversity and Inclusion which will promptly investigate the complaint as set forth above. Complaints may be filed with Diversity and Inclusion at: The Pennsylvania Turnpike Commission Office of Diversity and Inclusion P.O. Box Harrisburg, Pennsylvania (717) (Within 90 days of incident) The determination of the Office of Diversity and Inclusion shall represent the final decision of the Pennsylvania Turnpike Commission on the issue raised by the employee who complains of harassment or discrimination. [3]

11 10. If any employee who complains of harassment or discrimination is not satisfied with the results or recommendations of the Pennsylvania Turnpike Commission s internal findings, he or she may forward the complaint to the agencies listed below: PA Human Relations Commission: ( Harrisburg Regional Office Office Pittsburgh Regional Office 333 Market Street 301 Fifth Avenue Harrisburg, PA Suite 390, Piatt Place (717) (Voice) Pittsburgh, Pennsylvania (717) (TTY) (412) (Voice) (412) (TTY) Philadelphia Regional Office 110 North 8th Street Suite 501 Philadelphia, Pennsylvania (215) (Voice) (215) (TTY (Within 180 days of incident) Equal Employment Opportunity Commission: Philadelphia District Office Pittsburgh Area Office 801 Market Street 1000 Liberty Avenue Suite 1300 Suite 1112 Philadelphia, PA Pittsburgh, PA (800) (Voice) (800) (Voice) (800) (TTY) (412) (TTY) (Within 300 days of incident) This Policy Letter supersedes all previous Policy Letters on this subject. [4]

12 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.03 APPROVAL DATE: EFFECTIVE DATE: Family Medical Leave Human Resources REVISED DATE: A. PURPOSE: To provide a policy for all Pennsylvania Turnpike Commission ( Commission ) employees regarding the administration of the Family Medical Leave Act (FMLA) of B. SCOPE: This policy provides information and procedures regarding FMLA. To be eligible for FMLA, an employee must meet the following criteria: 1. Have worked for the Commission for at least one (1) year; 2. Worked at least 1,250 hours within the twelve (12) consecutive month period prior to the start of the requested leave; and 3. Has not used his/her full entitlement of leave under FMLA within the previous 12-month rolling calendar period. The 12-week allotment will be reduced by any period of family medical leave taken within the 12-month rolling calendar period. C. GENERAL POLICY: The FMLA allows eligible employees to take up to twelve (12) weeks (480 hours or 60 days) of jobprotected leave for a qualified FMLA event. Upon return from FMLA leave, most employees will be restored to their original or equivalent position with equivalent pay, benefits, and other employment terms. An employee does not have to specifically request leave under FMLA for that leave to be covered and counted as part of his/her FMLA entitlement. Qualifying FMLA reasons: 1. The birth of a child or placement of a child for adoption or foster care. 2. To care for a spouse, son, daughter or parent, who has a serious health condition. 3. For a serious health condition that makes the employee unable to perform the essential functions of his/her job. 4. For any qualifying exigency arising out of the fact that a family member is on covered active duty or has been notified of impending call or ordered to covered active duty status for members of the Armed Forces, including reserve components of the Armed Forces; members of the National Guard and Reserves in support of a contingency operation. [1]

13 5. Caregiver leave for employees who are a spouse, child, parent or next of kin to a covered service member which includes a current member of the Armed Forces or covered veterans, who is undergoing medical treatment or recuperation therapy as a result of a serious injury or illness. This leave allows for up to twenty-six (26) weeks of continuous family leave in a single 12-month period, instead of the standard twelve (12) weeks. This allotment of leave is a one-time event, per covered service member, per injury. All other provisions listed below apply. Any other type of FMLA leave taken in the same 12-month period will be included in the twenty-six (26) week entitlement of military caregiver leave. During FMLA leave, the Commission will maintain the employee s health coverage on the same terms as if the employee had continued to work. If the employee does not return to work from continuous leave, the employee may be responsible for the reimbursement of all benefit claims or premiums paid by the Commission while the employee was on leave. Leave Usage, Accrual and Holidays 1. Employees using FMLA for their own serious health condition shall use all accrued sick and vacation leave before unpaid leave may be taken. All such leave is included in the 12-week entitlement and should be recorded on the employee s timesheet as FMLA. 2. Employees using FMLA for a family member shall use all accrued vacation before unpaid leave may be taken. All such leave is included in the 12-week entitlement and should be recorded on the employee s timesheet as FMLA. 3. An employee must be in a compensable status for a minimum of thirty-seven (37) hours in a pay period in order to accrue sick and vacation leave. Accordingly, accrual of sick and vacation leave may be affected whenever an employee is on unpaid FMLA leave for an extended period of time. 4. Holidays are included in the 12-week entitlement if an employee is on FMLA leave for the entire week of which the holiday falls or if the employee is scheduled to work the holiday and calls off due to a qualifying FMLA event. Types of FMLA Leave 1. Continuous FMLA Leave: An employee is absent for more than three (3) consecutive work days for a FMLA qualifying event and has been treated by a physician. Upon return from continuous FMLA leave for the employee s serious health condition, the employee will be required to submit a return to work note from his/her health care provider. 2. Intermittent FMLA Leave: An employee is taking time off in separate blocks of time due to a serious health condition that qualifies for FMLA. Intermittent FMLA is often taken for medical appointments or flareups when an employee needs ongoing treatment for his/her condition. Intermittent FMLA may only be used for the reason(s) specified on the FMLA Certification form; it cannot be used for medical appointments not relating to the FMLA reason listed on the certification form. It is the employee s responsibility to attempt to schedule appointments and treatments during non-working hours to avoid affecting the Commission s operations. [2]

14 The Commission reserves the option to temporarily assign an employee to a position that the employee is capable of performing in, at the same pay/benefit level he/she is while on intermittent FMLA leave. The employee will be restored to his/her original or equivalent position at the end of the leave. Employees must provide a new certification form when requesting to change their FMLA leave approval from continuous to intermittent or vice versa unless the original certification form includes all the necessary information for both types of leave. 3. Reduced Schedule FMLA Leave: An employee works a reduced weekly work schedule. Reduced work schedules are a set work schedule that can be accommodated without affecting Commission operations. Due to the nature of Commission operations, this option is not available to all employees. 4. FMLA and Childrearing Leave: FMLA runs concurrently with Childrearing leave provided the employee is eligible for FMLA. FMLA leave for this reason must be used within the first twelve (12) months following the birth or adoption of the child. Employees are not required to use their vacation leave first when used concurrent with Childrearing leave. They may elect to use FMLA paid vacation leave or opt to use only unpaid FMLA leave. Management and Local 30 Supervisory employees: A reduced work schedule will only be approved based on the Childrearing Leave policy and the Commission s ability to maintain efficient operations. Please refer to Commission Policy Letter No (Childrearing Leave Without Pay) for further information. Union employees: If the employee has not exhausted his/her twelve (12) weeks of FMLA leave, the employee may request a set part-time schedule using the remainder of his/her FMLA entitlement. A reduced work schedule will only be approved based on the Commission s ability to continue to maintain efficient operations. Please refer to Article 15 Leaves of Absence in the collective bargaining agreement for further information. Employee Notification Requirements 1. When the need for leave is foreseeable, employees must give thirty (30) days advance notice of the intent to take the leave. Failure to give advance notice, when the need for leave is foreseeable, may result in the Commission denying or delaying the requested FMLA leave. 2. When the need for leave is unforeseeable, employees must give notice the same day the employee becomes aware of the need for the leave, except in the case of an extreme emergency. 3. Employees reporting a FMLA absence are required to comply with the Commission s usual and customary call off procedures, unless there are unusual circumstances that prevent him/her from doing so. [3]

15 Employer Notification Requirements and Designation of Leave 1. Upon learning of the need for FMLA, HR will notify an employee of his/her FMLA eligibility status. 2. Designation of the leave will be made before the leave starts unless the Commission does not have sufficient information regarding the reason for the leave until after the leave begins. Designation may be made retroactively after completion of the leave if the Commission does not have sufficient information regarding the reason for the leave until after the employee s return. 3. An employee approved for intermittent FMLA will be notified bi-weekly on his/her paystub of the amount of leave that has been charged against the FMLA entitlement during each pay period. General Information When both spouses are employed by the Commission, FMLA leave is limited to a combined twelve (12) weeks for the birth and care of a newborn child, placement of a child for adoption or foster care and for the care of a parent. D. DEFINITIONS: Covered Active Duty is duty during deployment of the employee with the Armed Forces to a foreign country. For an employee who is a member of the National Guard and Reserves, covered active duty is duty during deployment of the employee with the Armed Forces to a foreign country under a call or order to active duty in a contingency operation. Family Member is a spouse, son, daughter or parent who has a serious health condition and meets the following guidelines: A son or daughter up to 18 years old, or a son or daughter 18 years or older who is incapable of self-care as a result of a mental or physical disability, or a parent, if such spouse, son, daughter, or parent has a serious health condition. A spouse is defined under the FMLA as a husband and wife. For purposes of the definition husband and wife refers to the other person with whom an individual entered into a recognized marriage under state law in which the marriage was entered into. The definition includes an individual in a same-sex or common law marriage that was entered into in a State that recognizes such marriages. The term parent does not include in-law relationships but does include a person standing as a parent (in loco parentis). For the purpose of either type of military FMLA leave, the definition of son or daughter does not have an age limitation. [4]

16 Holiday Pay is compensation recognized on holidays for employees who qualify provided they meet the compensable status requirements for holiday pay. A Management/Local 30 Supervisory employee will receive holiday pay provided he/she is in compensable status for his/her full or reduced scheduled workday immediately preceding the holiday and full or reduced scheduled workday immediately following the holiday. A Union employee will receive holiday pay provided he/she has no more than one (1) hour of non-compensable time on his/her last full or reduced scheduled workday immediately preceding the holiday and his/her full or reduced scheduled workday immediately following the holiday. Member of the Armed Forces is active military members of the Armed Forces, PA National Guard or a reserve component of the military. Next of Kin is the nearest blood relative, other than a spouse, child or parent. Provisional Approval is the temporary approval for FMLA leave subject to receipt of a completed medical certification form. After the fully completed medical certification has been received, the Commission will make a final determination whether the request for leave meets the FMLA guidelines for approval. Qualifying Exigency as defined under the FMLA may include attending certain military events, arranging for alternative childcare, addressing certain financial and legal arrangements, attending certain counseling sessions, attending post-deployment activities, rest, recuperation, issues arising from short notice deployments and care of the covered member s parent who is incapable of selfcare. Rolling Calendar Year is used to determine the FMLA 12-month eligibility period. This method works by calculating time backward from the date an employee uses any FMLA leave. Serious Health Condition is an illness, injury, impairment, or physical or mental condition that involves either an overnight stay in a medical care facility, or continuing treatment by a health care provider. Continuing treatment by a health care provider includes treatment for pregnancy, chronic conditions, permanent or long-term conditions and conditions that require multiple treatments. Voluntary or cosmetic treatments, which are not medically necessary, are not considered a serious health condition unless inpatient hospital care is required or complications develop. Serious Injury or Illness for Military Caregiver Leave is defined leave needed to care for a service member with an injury or illness which incurred in the line of duty on active duty or that existed before the beginning of the member s active duty and was aggravated by service in the line of duty on active duty in the Armed Forces that may render the service member medically unfit to perform the duties of his/her office, grade, rank or rating. For a veteran, a serious injury or illness is one that qualifies the veteran for certain benefits from the Department of Veterans Affairs or substantially impairs the veteran s ability to work. For veterans, it includes injuries or illnesses that were incurred or aggravated during military service but that did not manifest until after the veteran left active duty. [5]

17 Voluntary or cosmetic treatments, which are not medically necessary, are not considered a serious health condition unless inpatient hospital care is required or complications develop. PROCEDURES: The role of Human Resources ("HR ) in the FMLA process is to determine the employee s eligibility and assist them in obtaining FMLA leave. The FMLA process is outlined as follows: 1. The employee should inform his/her supervisor or HR of his/her intent to request and take FMLA leave. 2. For consideration of FMLA benefits, an employee must submit the FMLA certification form that corresponds with the type of leave he/she is requesting. The form must be completed in its entirety and signed by a health care provider and submitted to HR. The four (4) FMLA certification forms listed below are available on the intranet at \\COFS1\Public\Forms\HR Forms\HR-FMLA Form- as well as in HR and field locations. FMLA Form Employee s Condition FMLA Form Family Member s Condition FMLA Form Military, Injury of Covered Service Member (Caregiver Leave) FMLA Form Military, Qualifying Exigency 3. HR will review the FMLA certification form and send the employee a FMLA approval or denial letter within five (5) business days of receiving the completed form from the employee. Additional information including FMLA expiration dates, re-certification requirements if applicable and employee responsibilities will also be included with the letter. HR will send a copy of the approval or denial letter to the employee s supervisor and manager. 4. If the FMLA certification form received by HR is vague, ambiguous or lacks sufficient information, HR will issue to the employee a provisional approval letter specifying the additional information needed and advising that the information must be provided to HR within fifteen (15) calendar days from the date of the letter. If the deficiencies specified by the Commission are not rectified within the required time frame specified, FMLA leave may be denied. 5. The employee should only complete the employee section on the certification form. The other sections of the form should not be completed or altered by the employee prior to submission. The intentional falsification of a FMLA certification form may be cause for immediate discharge. This Policy Letter supersedes all previous Policy Letters on this subject. [6]

18 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.05 APPROVAL DATE: 10/2/1979 EFFECTIVE DATE: 6/22/2005 Personal Leave (Without Pay) Authorization Human Resources REVISED DATE: 1/28/2015 A. PURPOSE: B. SCOPE: To provide consistent procedures for requesting and approving personal leave without pay. This policy letter applies to all Pennsylvania Turnpike Commission employees including Supplemental Toll Collectors. C. GENERAL POLICY: This policy establishes the role of the requesting employee and all appropriate personnel required for approval. It further establishes the total number of leave without pay days that may be approved by supervisors for an employee within a calendar year. It is the supervisor s responsibility to ensure compliance with this policy. The Human Resources Department will periodically monitor personal leave usage. Personal leave days are not accrued and should only be approved based on operational needs and the supervisor s ability to maintain efficient operations. This policy does not permit intermittent personal leave. D. DEFINITIONS: Personal leave is any approved time-off taken by an employee which he/she does not receive compensation. Days used for Family Medical Leave Act (FMLA) leave, Sick and Accident and Workers Compensation and waiting periods for Sick and Accident and Workers Compensation are not counted in this definition of personal leave. Days as used in this policy refers to scheduled work days, unless otherwise stated herein. Intermittent Leave is approval of personal leave in advance to be used at the employee s discretion. Year as used in this policy refers to the calendar year. [1]

19 E. PROCEDURES: Authorization for personal leave shall be administered in the following manner: One (1) to five (5) days per year: Up to five (5) total days of leave without pay per year may be approved by an employee s immediate supervisor who is authorized to approve leave for the particular employee. The request shall be made directly to the immediate supervisor. The request shall be made in writing, but direct phone contact with the immediate supervisor is acceptable in an emergency. The supervisor will either approve or deny the leave. If approved for three (3) or more consecutive days, the approval must be in writing and include a doctor s certification if the leave was due to medical reasons. The supervisor will retain a copy of the request and response on file. Six (6) to ten (10) days per year: Between six (6) and ten (10) total days of leave without pay per year may be approved by the employee s Department Head. The request shall be made in writing and submitted to the Department Head, with a copy to the employee s immediate supervisor, at least forty-eight (48) hours prior to the first day of leave requested. The request shall include the total time off requested and the reason for the request. The Department Head shall either approve or deny the leave and send written notification of the determination to the employee with a copy to the employee s immediate supervisor. If the request is for medical reasons, it shall include a doctor s certification. The Department Head shall retain a copy of the request and response on file. Eleven (11) to fifteen (15) days per year: Between eleven (11) and fifteen (15) days of leave without pay per year may be approved by the Director of Human Resources. The request shall be made in writing and submitted to the requesting employee s Department Head at least five (5) days prior to the first day of leave requested. The request shall include the total time off requested and the reason for the request. Continuous leaves of more than five (5) days shall be counted on a calendar day basis. If the request is for medical reasons, a doctor s certification must be submitted with the request. The Department Head shall forward the request to the Director of Human Resources and include a recommendation either to approve or deny the leave. This recommendation shall include if and how the employee will be replaced and any impact this leave will have on operations and/or the workforce. The Director of Human Resources shall either approve or deny the leave and send written notification of the determination to the employee with a copy to the employee s immediate supervisor and Department Head. [2]

20 Sixteen (16) or more days per year: Requests for sixteen (16) or more days per year may be approved by the Chief Operating Officer when circumstances warrant consideration. The request shall be submitted to the employee s Department Head, with a copy to the employee s immediate supervisor, at least fourteen (14) days prior to the first day of leave requested. The request shall be made in writing. The request shall include the reason for the request and the total time off requested, including the expected end date. Continuous leaves of more than five (5) days shall be counted on a calendar day basis. If the request is for medical reasons, a doctor s certification must be submitted with the request. The Department Head shall forward the request to the Director of Human Resources and include a recommendation either to approve or deny the leave. This recommendation shall include if and how the employee will be replaced and any impact this leave will have on operations and/or the workforce. The Director of Human Resources shall forward the request to the Chief Operating Officer for consideration. The request shall include supporting documentation and a recommendation by the Director of Human Resources either to approve or deny the leave. The Chief Operating Officer shall either approve or deny the leave and send written notification to the Director of Human Resources. The Director of Human Resources shall send written notification of the determination to the employee with a copy to the employee s immediate supervisor and Department Head. If an employee applies for Sick and Accident or Workers Compensation and the application is denied, the employee may elect to use either available vacation leave, sick leave, or they may submit a request for consideration of personal leave to the Director of Human Resources for the period of absence. Continuous leaves of more than five (5) days shall be counted on a calendar day basis and may affect the employee s medical benefit coverage. It is the employee s responsibility to contact the Human Resources Department regarding continuation of medical benefits for leaves that are more than five (5) consecutive days as this is an unpaid leave and does not protect the employee s right to continue employer paid medical benefits. Guidelines for Approving Personal Leave: 1. All available leave should be exhausted before considering Personal Leave. 2. The absence shall not exceed ninety (90) days in duration, unless specifically extended by the COO based on the employee s circumstance. 3. The reason for the absence cannot be for any form of incarceration, including without limitation, absences due to house arrest or community service. 4. The reason for the absence cannot be for the purpose of engaging in secondary employment or to pursue a postsecondary or other degree. [3]

21 5. The employee s past leave usage may be considered when reviewing the request. 6. The requested absence will not interfere with the Commission s ability to maintain efficient operations. 7. The employee may be asked to justify the exceptional nature of the request. 8. Exact reasons for approving the absence will vary; however, consideration should be given to at least the following reasons: a. Vacations for a new employee when scheduled prior to receiving an employment offer from the Commission. b. Unforeseen medical emergencies (medical documentation to support the request is required). c. Other reasons as determined by the Commission. Employees who are denied personal leave, due to operational reasons (such as incurring overtime) where it is not practical to approve leave without pay, may request to use available sick or vacation time. Supervisors may grant paid leave if they can still maintain operations including use of overtime. If an employee fails to comply with the policy, is not on approved leave, or fails to return to work as scheduled at the expiration of the leave, fails to request an extension of such leave within the time period stated on his/her approval letter, is working elsewhere while on leave or falsifies his/her personal leave request, he/she may be subject to disciplinary action, up to and including termination. For Commission employees covered under a Collective Bargaining Agreement, this policy will be applied consistent with Article 15 (Leaves of Absence), Section 6. This Policy Letter supersedes all previous Policy Letters on this subject. [4]

22 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.06 APPROVAL DATE: EFFECTIVE DATE: Policy and Procedure for Filling Entry Level Positions Human Resources REVISED DATE: A. PURPOSE: To establish policy and procedures governing hiring individuals into entry level positions. B. SCOPE: This policy applies to the recruitment and selection of applicants into entry-level positions throughout the PTC. This policy does not apply to positions where collective bargaining agreement or memorandum of understanding provisions govern filling the position. It also does not apply to recruitment into non-entry level positions or senior level, policy-making or confidential positions. C. GENERAL POLICY: The Commission is an equal opportunity employer. It is the policy of the Commission to comply with all applicable federal, state and local fair employment practices and statutes. The Commission will hire individuals on the basis of their qualifications for the job to be filled, and will provide equal opportunity in employment to all employees and applicants for employment. This policy applies to all terms, conditions and privileges of employment. The Commission will select, assign, promote and treat employees on an equal opportunity basis without regard for race, religious creed, ancestry, union membership, age, sex, sexual orientation, marital status, national origin, AIDS or HIV status, or disability. D. DEFINITIONS: Entry-Level Positions: Entry level positions are the lowest level of employment in a job class, family, discipline or field. Although most entry-level positions are generally unskilled or semiskilled positions, some may require educational degrees higher than high school and other certifications. [1]

23 Non-Entry Level Positions: Non-entry level positions are generally considered skilled, technical, or professional positions that require some experience, specialized knowledge, and often education in addition to a high school diploma or equivalent. Senior-Level, Policy-Making, and Confidential Positions: Senior-level, policy-making or confidential positions are defined as Chief Executive Officer, Chief Operating Officer, Chief of Staff for Operations and Administration, as well as the personal staff and secretaries to the above-stated individuals and Commissioners, Chief Counsel, Chief Financial Officer, Chief Engineer, Chief Information Officer, attorneys, Director of Communications and Public Relations and staff attached to the press office, and such other positions that are determined to be confidential or have an influence in determining or implementing policy. The Chief Executive Officer, with the approval of the Commission, shall, depending upon the requirements of a particular position, determine the procedure to be followed in filling a vacancy in a senior-level or confidential position. This Policy Letter does not apply to these positions. E. PROCEDURES: The Human Resources representative will notify the Personnel Committee of all positions that are to be filled by the selection of an outside candidate. The Personnel Committee shall provide an appropriate number of candidates for the position. Sources of candidates may include, but are not limited to: 1. Consideration of available candidates whose applications have been previously referred. 2. Consideration of candidates whose applications are active and on file in the Human Resources Department. 3. External advertising to attract qualified candidates. The Personnel Committee will refer an appropriate number of available candidates to the respective department manager for an interview and consideration for the vacancy. The department manager or his/her designee will conduct the interview. Provided the candidate is suitable for employment, the Personnel Committee will recommend to the Commission those candidate(s) to be offered employment. All candidates must successfully complete all pre-employment requisites; i.e. successful completion of training and any pre-employment testing, comply with any licensure requirements or specialized training requirements, background checks, etc. The Director of Human Resources may develop standardized procedures to implement this policy. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

24 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.07 APPROVAL DATE: EFFECTIVE DATE: Policy and Procedure for Promoting Employees Human Resources REVISED DATE: A. PURPOSE: To establish policy and procedures to ensure that all departments use consistent and uniform standards of qualifications when filling positions within the Pennsylvania Turnpike Commission. B. SCOPE: 1. This policy letter does not apply to: a. Entry-level positions. b. Positions where collective bargaining agreement provisions apply. c. Senior-level, policy-making, or confidential positions. The Commission has the authority to decide which positions are or are not covered by this Policy Letter. C. GENERAL POLICY: It is the policy of the Pennsylvania Turnpike Commission ( Commission ): 1. To fill positions by seeking out, identifying and selecting qualified candidates. 2. To provide equal opportunity to all persons regardless of race, color, religion, marital status, disability or handicap, national origin, age, sex or political affiliation or support. D. DEFINITIONS: 1. Senior-level, policy-making or confidential positions are defined as Chief Executive Officer, Chief Operating Officer, Chief of Staff for Operations and Administration, as well as the personal staff and secretaries to the above-stated individuals and Commissioners, Chief Counsel, Chief Financial Officer, Chief Engineer, Chief Information Officer, attorneys, Director of Communications and Public Relations and staff attached to the press office, and such other positions that are determined to be confidential or have an influence in [1]

25 determining or implementing policy. The Chief Executive Officer, with the approval of the Commission, shall, depending upon the requirements of a particular position, determine the procedure to be followed in filling a vacancy in a senior-level or confidential position. This Policy Letter does not apply to these positions. 2. The Administration Committee shall consist of the Chief Executive Officer (or his/her designee), Chief Operating Officer, Chief of Staff for Operations and Administration, Chief Financial Officer, Chief Engineer, Chief Information Officer, Chief Counsel, Director of Human Resources, who serves as the chairperson and members appointed by the Chief Executive Officer. The Chief Counsel and the Chief of Staff for Operations and Administration shall serve as advisory members of the Administration Committee. The role and responsibilities of the Administration Committee are set forth in the Salary Administration Policies and Procedures. E. PROCEDURES: 1. At a minimum, vacancy notices for all positions which are subject to the provisions of this Policy Letter will be posted at every Commission work location for at least ten working days. 2. Candidates for any position that has been posted must submit a written expression of interest, which may be in the form of an updated employment application or resume and a copy of their most recent performance evaluation, if available, (collectively referred to as the application ) to the Human Resources Department (HR) no later than the close of business on the last day identified in the posting. 3. HR will acknowledge receipt of all applications. An applicant who does not receive such acknowledgment is under an obligation to immediately contact HR to determine the circumstances under which the application was not acknowledged. 4. HR will review all of the applications to determine which applicants meet the minimum educational, experience and training requirements for the position. It is the candidate s responsibility to ensure his or her work history and educational, experience, and training background is explained in sufficient detail for this determination to be appropriately completed. 5. HR will forward to the Chief/Director of the department in which the vacancy exists, all of the applications which HR determines meet the minimum educational, experience and training requirements for the position. 6. Generally, the Chief/Director or his/her designee will interview all applicants whose applications have been forwarded by HR. In the event an unusually large number of applications are received, the Chief/Director has the authority to reduce the number of applications to be interviewed. 7. The department manager and the respective Chief/Director will follow Commission procedures in conducting interviews. Interviews will be conducted using the same job-related questions for all applicants. A written summary will be made of each interview. [2]

26 8. Each candidate will be evaluated based upon a qualitative evaluation of his or her education, experience and training as it compares to the job requirements; as well as the results of the interviews and reference checks. 9. The department manager, subject to the review and approval of the respective Chief/Director, shall, consistent with and in conformance with all applicable Commission policies, present recommendations of not more than three applicants to the Administration Committee in the form of a short, written supporting statement. If no applicant is recommended as a result of this process, the Director of Human Resources shall, in consultation with the Chief/Director, use professional hiring procedures to identify and recommend one individual to the Administration Committee. 10. The Administration Committee shall review the recommendation(s) and recommend one individual to the Commission. The Administration Committee will determine the appropriate salary level for the selected candidate in accordance with the Salary Administration Policies & Procedures. 11. The Commission has the discretion to accept the recommendation of the Administration Committee, to request additional information about the recommended candidate, to defer or to decline to fill the position. 12. HR will notify all candidates who applied of the outcome of the selection process no later than two weeks after Commission action. 13. The Director of Human Resources will develop standardized procedures to implement this policy. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

27 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.08 APPROVAL DATE: EFFECTIVE DATE: Childrearing Leave Without Pay Human Resources REVISED DATE: A. PURPOSE: To provide a policy for Pennsylvania Turnpike Commission ( PTC ) Management/Local 30 First Level Supervisory ( Local 30S ) employees to request childrearing leave without pay. B. SCOPE: This policy provides information and procedures for Management and Local 30S employees requesting childrearing leave. Employees in Locals 30 Professional, 250 and 77 (field and central office) should refer to their respective collective bargaining agreement or memorandum of understanding regarding their eligibility for childrearing leave. Childrearing leave runs concurrently with medical leave under the Family Medical Leave Act ( FMLA ). To be eligible for childrearing leave, an employee must meet the following criteria: 1. Have worked for the PTC for at least 90 days; and 2. Become a parent by birth or formal adoption of a child less than one (1) year of age. Childrearing leave may not be used prior to the birth or court placement of the child, except when required by adoption in order to proceed. Childrearing leave may not be used for a child that is over one year of age, for a step-child or for a child placed though foster care. Employees may apply for sick and accident ( S&A ), or request permission to take FMLA or personal leave without pay prior to the birth, as applicable. Female employees who have worked for the PTC more than 90 days may be eligible for S&A, FMLA or personal leave during pregnancy or during the initial period of disability after the birth. S&A leave is not included as childrearing leave. If approved, childrearing leave will begin after the period of disability. Union employees should refer to the applicable bargaining unit agreement regarding eligibility for childrearing leave. [1]

28 C. GENERAL POLICY: This policy is extended to both male and female employees. Leave may be requested either fulltime, part-time or a combination of both. Regardless of the type of leave that is taken, the employee must return to work full-time on or before the child's first birthday. This leave is subject to approval by the employee s immediate supervisor, the department head and Human Resources. Approval is conditional upon the employee s supervisor being able to balance workload and staff responsibilities appropriately. Full-Time Childrearing Leave Maximum duration of nine (9) months. Employees must return-to-work on or before the child s first birthday. Medical, prescription, dental and vision benefits will be continued by the PTC for up to six (6) months for employees. o The six (6) month period of eligibility for medical benefits will include any time on short-term disability and/or FMLA. The employee may continue benefit coverage on a self-pay basis beyond the six (6) month period. o Employees receive medical benefits at no cost provided all required individuals participate and meet the requirements of the PTC s annual wellness program. If any required individuals choose not to participate and/or do not meet all the requirements of the wellness program, the employee will be required to contribute 5% of the medical plan tiered rate in which the employee is currently enrolled. PTC paid group life insurance will be continued for the employee while they are on childrearing leave. Employees will not accrue vacation and sick leave while on full-time childrearing leave. Employees on full-time childrearing leave are not eligible for holiday pay. Part-Time Childrearing Leave Employees must be on a part-time schedule that is a minimum of 24 hours per work week. o Scheduled workdays must be a minimum of four (4) hours per day. o Schedules must be the same set schedule every week. o The PTC reserves the right to change a schedule for training, meetings or other purposes necessary to maintain efficient operations. o Employees are required to be on an approved leave such as sick or vacation leave for time off on any scheduled workdays. Employees are eligible for up to a total of 1572 hours (196.5 days) of leave; including employees that combine full-time and part-time leave. Employees must return-to-work on before the child s first birthday. [2]

29 Medical, prescription, dental and vision benefits will be continued by the PTC during the period the employee is on part-time leave. o Employees must meet the eligibility requirements for healthcare benefits. o Employees receive medical benefits at no cost provided all required individuals participate and meet the requirements of the PTC s annual wellness program. If any required individuals choose not to participate and/or do not meet all the requirements of the wellness program, the employee will be required to contribute 5% of the medical plan tiered rate in which the employee is currently enrolled. PTC paid group life insurance will be continued for the employee while they are on parttime childrearing leave. Employees on part-time childrearing leave will accrue vacation and sick leave each pay period that they are in compensable status for at least 37 hours. Employees on part-time childrearing leave are eligible for holiday pay. D. DEFINITIONS: Department Head - The chief or director whose position is graded at highest level over an entire department. Disability period - A period of time that you are unable to perform all the essential functions of your job and are under the regular and continuing care of a physician. Family Medical Leave Act (FMLA) - A United States federal law requiring covered employers to provide employees job-protected and unpaid leave for qualified medical and family reasons. Qualified medical and family reasons include: personal/family member s serious health condition, family military leave, pregnancy, adoption, or the foster care placement of a child. FMLA runs concurrently with childrearing leave. Holiday pay - Compensation on holidays for employees who qualify, provided they meet the compensable status requirements for holiday pay. A Management/Local 30S employee will be paid for a holiday provided he/she is in compensable status for his/her full or reduced schedule workday immediately preceding the holiday and full or reduced schedule workday immediately following the holiday. Parent - Is the legal mother and father of a child either through biological birth or formal adoption. Short Term Disability (S&A) - Is a leave of absence for an employee who becomes temporarily disabled, which means that he/she is not able to work for a short period of time due to a non-work related illness or injury. Sick and accident leave does not run concurrently with childrearing leave. [3]

30 PROCEDURES: The employee shall submit a completed childrearing leave request form to his/her immediate supervisor at least two (2) weeks prior to the anticipated start of the leave (where foreseeable) or for any request to change an existing schedule. The immediate supervisor and the department head will review the request and determine if the department is able to maintain efficient operations while the employee is on childrearing leave. If approved, both the immediate supervisor and the department head will sign the request form and forward it to Human Resources. Human Resources will review the request to ensure it is in compliance with the policy. Human Resources will notify the employee in writing of the approval or denial of the childrearing leave request. The employee must return to work full-time on or before the child s first birthday. The employee must provide his/her immediate supervisor with a notice to return-to-work full-time at least 2 weeks in advance in order for the immediate supervisor to place the employee back on the work schedule. The immediate supervisor must notify Human Resources upon the employee s return to full-time status. This Policy Letter supersedes all previous Policy Letters on this subject. [4]

31 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.09 APPROVAL DATE: EFFECTIVE DATE: PA Residency Requirement for Employment Human Resources REVISED DATE: A. PURPOSE: This policy letter states the requirement for all non-union Pennsylvania Turnpike Commission employees hired on or after its effective date to be legal residents of the Commonwealth of Pennsylvania. B. SCOPE: The Commission's Pennsylvania Residency Requirement for Employment applies to persons whose initial date of hire falls on or after the effective date of this policy letter. C. GENERAL POLICY: Persons whose initial date of hire at the Commission falls on or after the effective date of this policy letter shall; (a) be legal residents of the Commonwealth of Pennsylvania; or (b) become legal residents of the Commonwealth within a period of six months (or any extension thereof by the Commission) from their initial date of hire, unless the requirement of residency has been waived, as hereinafter provided. Upon certification by the Chief Executive Officer that there is an inadequate pool of qualified candidates within the Commonwealth available for a specific position, the Commission may waive the residency requirement for a particular individual hired for that position. D. DEFINITIONS: The definition of residence for purposes of this policy is: the place or locality at which an employee resides and has manifested an intent to continue to reside. The factors which provide evidence of intent to maintain residency in this Commonwealth include the following: (1) The lease or purchase of a property which the applicant has made a primary residence. (2) Payment of state and local taxes in the Commonwealth of Pennsylvania. (3) Registration of personal property, such as bank accounts, stocks and bonds and automobiles within this Commonwealth. [1]

32 (4) Possession of a current Pennsylvania Motor Vehicle Operator License. (5) Current registration as a voter in this Commonwealth. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

33 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.10 APPROVAL DATE: EFFECTIVE DATE: Secondary Employment Human Resources REVISED DATE: A. PURPOSE: To establish policy and procedures regarding secondary employment for all current and prospective Pennsylvania Turnpike Commission (Commission) employees. This policy supplements and is to be read in conjunction with the Commission's Code of Conduct Policy Letter (No. 3.10). B. SCOPE: This policy letter applies to all prospective and current Commission employees in all departments, including management employees and those employees covered by a collective bargaining agreement or a memorandum of understanding and those still in their probationary period. C. GENERAL POLICY: The Commission does not want to unduly limit or interfere with an employee's use of his or her free time; however, the Commission must insure that its employees' activities away from the job do not adversely affect their ability to satisfy their obligations as employees of the Commission or in any way compromise its interests or reputation. Accordingly, all Commission employees who work or seek to work for compensation or remuneration in any capacity outside of their Commission employment, including self-employment, are required to file Secondary Employment Requests with their Departmental Head or designated official who will make a recommendation either to approve or disapprove the request. Such secondary employment does not include military duty. Approval for secondary employment must be obtained prior to accepting such employment for current employees and prior to employment with the Commission for prospective employees. Employees are required to resubmit their requests whenever the duties of their Commission or secondary employment positions change substantially. Approval to engage in most volunteer activities generally is not required. Such volunteer or public service activities include but are not limited to emergency services or work performed for charitable institutions or non-profit entities. Approval may, however, be required of certain volunteer and public service activities where the Commission believes that the activity may present a conflict of interest with [1]

34 the employee's regular job duties, the mission of the Commission, or any other applicable federal and state laws, rules or regulations. Current Commission employees seeking outside employment must submit to their immediate supervisor a Secondary Employment Request. The request must contain sufficient information to enable the reviewers to determine whether any conflict of interest exists. Commencing or continuing in secondary employment after receipt of notice that such secondary employment has been disapproved shall constitute grounds for discipline, up to and including termination. Secondary employment is considered secondary to Commission employment and any conflicts of interest arising out of secondary employment will be resolved in favor of the Commission. Such conflicts include, but shall not be limited to, conflicts with the Commission s conditions of employment, including hour of work (i.e. availability for overtime, training, traveling, etc.) and conflicts with other applicable federal and state laws, rules or regulations. Secondary employment will not be considered an excuse for poor job performance or breaking work rules. Prospective Commission employees must have approval of their secondary employment prior to becoming employed with the Commission. Requests must be filed sufficiently in advance of commencing employment with the Commission to give the Commission a reasonable period of time to receive and process the Secondary Employment Request. D. DEFINITIONS: Secondary Employment- is defined as employment (other than Military duty) in addition to regular fulltime employment with the Commission, for which any payments, compensation or remuneration of any nature is received for services rendered or to be rendered. It includes self-employment. An employee may not engage in any secondary employment that presents a conflict of interest with his or her Commission employment. E. PROCEDURES: It is the responsibility of the employee to notify the Commission of their desire to engage in employment outside of the Commission. Secondary Employment Request forms are available through the Human Resources Department or on-line. Any employee who desires to work in any capacity outside their Commission employment (except military duty) shall file a Secondary Employment Request with his or her immediate supervisor. The supervisor shall review the request and make a recommendation to the Department Head or designee either to recommend approval or disapproval within five (5) workdays of receipt of the request. The Department Head shall forward the request to the Director of Human Resources with his or her recommendation either to approve or disapprove the request within five (5) workdays of receipt of the [2]

35 request. If a possible conflict exists with Commission employment, the Human Resources Director will review the request with the Chief Counsel prior to approving or disapproving the request. The Director of Human Resources shall notify the employee of approval or disapproval by mail within five (5) workdays of the receipt of the request. In cases of disapproval, the employee shall be provided specific reasons for the disapproval and advised of the review procedures. Prospective employees must complete a Secondary Employment Request and submit the request to the Director of Human Resources prior to accepting an offer of employment with the Commission. If the employee's request has been denied, the employee may, within ten (10) workdays of the date of the final disapproval letter from the Director of Human Resources, appeal to the Chief Executive Officer (CEO) or designee. The employee shall submit their written request of appeal to the CEO. The original request for secondary employment and the letter of disapproval by the Director of Human Resources should be included. The Director of Human Resources should be copied on this request for review. The decision of the CEO is final. All Secondary Employment Requests will be reviewed on a case-by-case basis. The Commission is under no obligation to approve requests based solely on prior decisions or considerations. Approval of secondary employment is at the discretion of the Commission and may be revoked at any time. Notification of withdrawal of Commission approval for secondary employment will be made to the employee, in writing, by the Director of Human Resources. The Director of Human Resources may develop additional procedures to ensure compliance with this policy. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

36 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.11 APPROVAL DATE: EFFECTIVE DATE: Health Insurance Portability and Accountability Act (HIPPA) Human Resources REVISED DATE: A. PURPOSE: The Health Insurance Portability and Accountability Act (HIPAA) of 1996 required regulations to implement a comprehensive federal law to protect individually identifiable healthcare information. The Privacy Rule creates national standards to protect medical records and other protected health information (PHI). This policy governs the efforts of the Pennsylvania Turnpike Commission to comply with the relevant provisions of the Health Insurance Portability and Accountability Act (HIPAA). Procedures are included that outline privacy, use and disclosure of protected health information (PHI). B. SCOPE: This policy applies to all employees and all business associates including, but not limited to, contractors, consultants and vendors, of the Pennsylvania Turnpike Commission. C. GENERAL POLICY: The Commission's policy is to: Provide security of protected health information. Use PHI only as necessary. Some examples of use are: o To communicate with health care professionals who care for you o To obtain reimbursement from private insurers o To verify that services billed were actually provided o To assess and improve the services provided and the outcomes achieved o To pay for services you receive o To inform you about other public programs and services Disclose PHI to our business associates when it is necessary. Ensure compliance with HIPAA. D. DEFINITIONS: [1]

37 Business Associate- A person or entity who, on behalf of a covered entity or an organized health care arrangement, performs or assists in the performance of: 1. A function or activity involving the use or disclosure of individually identifiable health information, including claims processing or administration, utilization review, quality assurance, billing benefit management, practice management, and re-pricing; or 2. Provides legal, actuarial accounting, consulting, data aggregation, management, administrative, accreditation, or financial services for such covered entity or organized health care arrangement Business Associate Agreement- A contract between a covered entity and a business associate that must: 1. Establish the permitted and required uses and disclosures of personal health information (PHI) by the business associate. 2. Provide that the business associate will use PHI only as permitted by the contract or required by law, use appropriate safeguards, report any disclosures not permitted by the contract, ensure that only agents to whom it provides PHI will abide by the same restrictions and conditions, make PHI available to individuals, make its records available to Health and Human Services; and 3. Authorize termination of the contract by the PTC if the PTC determines that there has been a violation of the contract. The Business Associate Agreement is usually part of a contract made in the procurement process but can be part of a Memorandum of Understanding, Grant Agreement or other documents. Covered Entity- A health plan, a health care clearinghouse, or a health care provider who transmits any health information in electronic form in connection with a transaction. The PTC is a covered entity as a health plan since it is self-insured. Disclosure- Releasing, transferring, providing access to, or divulging in any other manner, information outside the entity holding the information. Health Care Provider- A provider of services and any other person or organization who furnishes, bills, or is paid for health care in the normal course of business. Health Information- Any information, whether oral or recorded in any form or medium, that: 1. Is created or received by a health care provider, health plan, public health authority, employer, life insurer, school or university, or health care clearinghouse; and 2. Relates to the physical or mental health or condition of an individual; the provision of health care to an individual; or payment for the provision of health care to an individual. [2]

38 Individual- The person who is the subject of protected health information. Individually Identifiable Health Information- Health information, including demographic information collected from an individual that identifies the individual or with respect to which there is a reasonable basis to believe the information can be used to identify the individual. Protected Health Information (PHI)- Individually identifiable health information that is transmitted by electronic media, maintained in any medium, transmitted or maintained in any other form or medium. Protected health information excludes individually identifiable health information in education records covered by the Family Educational Right and Privacy Act. Privacy/Client Information Officer- To ensure compliance, the Privacy Rule requires that covered entities designate a Privacy Officer who is responsible for the development and implementation of privacy policies and procedures. The Privacy Officer oversees all ongoing activities related to the development, implementation, maintenance of, and adherence to the PTC s policies and procedures covering the use, and access to, protected health information in compliance with federal and state laws. The PTC Privacy Officer is the Manager of Compensation and Benefits, Human Resources Department. The role of the Privacy Officer is to: 1. Provide guidance and assist in the identification, implementation, and maintenance of information on privacy policies and procedures. 2. Perform initial and periodic information privacy risk assessments and conduct related ongoing compliance monitoring activities in coordination with the Commission s other compliance and operational assessment functions. 3. Work with individual departments to ensure that the Commission has and maintains appropriate privacy consent and authorization forms, information notices and materials reflecting current policies and procedures. 4. Oversee delivery of initial privacy training to all Commission employees. 5. Oversee delivery of initial guidance to contractors, business associates, and other appropriate third parties. 6. Participate in the development of all trading partner, chain of trust and business associate agreements, to ensure all privacy concerns, requirements, and responsibilities are addressed. 7. Establish and administer a process for receiving, documenting, tracking, investigating, and taking action when appropriate, on all complaints concerning the Commission s privacy policies and procedures in coordination with other similar functions and, when necessary, the Legal Department. 8. Ensure compliance with privacy practices and consistent application of sanctions for failure to comply with privacy policies for all individuals in the Commission s workforce. [3]

39 9. Work with all Commission personnel involved with any aspect of release of protected health information to ensure full coordination and cooperation under the Commission s policies and procedures. 10. Monitor changes in applicable federal and state privacy laws and advancement in information privacy technologies to ensure PTC compliance. 11. Cooperate with the Department of Justice, Office for Civil Rights, PTC auditors and legal staff in any appropriate compliance review or investigation. Privacy Rule-The Privacy Rule, as published in the Code of Federal Regulations, creates national standards to protect medical records and other protected health information (PHI). The Privacy Rule sets a minimum standard of safeguards of PHI and requires the PTC to take certain actions, such as the actions outlined in this policy. Use- With respect to individually identifiable health information, the sharing, employment, application, utilization, examination or analysis of such information within an entity that maintains such information. E. PROCEDURES: Minimum Necessary Standard. The PTC must restrict access and use of PHI to the minimum necessary for an employee to perform their specific job function. Electronic and manual access to PHI will be determined by the scope and responsibilities of an employee s position. Specific access must be listed in all departments policies and job descriptions, as appropriate. Routine disclosures must always be limited to the minimum necessary to meet the purpose of the disclosure. For example, a minimum disclosure for oversight purposes could include large numbers of records with minimal identifying information in order to identify treatment or payment patterns. Business Associates. 45 CFR (e)(1) requires that in order to disclose PHI to a business associate, a program office must receive satisfactory assurance that the business associate will appropriately safeguard the information. Under the Privacy Rule, satisfactory assurances must be obtained in a contract or other written arrangement. The Legal Department has developed Business Associate Language that all departments must adapt to fit their and their business partners needs. (See Appendix A). The individual departments, in conjunction with the Contracts Administration Department, will review relationships with business partners to determine whether it is appropriate to execute a business associate agreement. Security of Personal Health Information (PHI). The PTC will ensure all PHI is properly secured at all times. Written PHI will be secured at work locations in locked drawers and file cabinets. Electronic PHI will be password protected and secured. PHI will only be provided to individuals when necessary. Individuals granted access to PHI will be instructed to maintain confidentiality of the information and ensure proper use of the information. [4]

40 Use and Disclosure of PHI. Use of PHI will be limited to those individuals involved in the operation and administration of employee benefit programs. PHI will only be disclosed to outside business associates when necessary. Some examples of use are: to communicate with health care professionals who care for you; to obtain reimbursement from private insurers; to verify that services billed were actually provided; to assess and improve the services provided and the outcomes achieved; to pay for services you receive; and, to inform you about other public programs and services. Any other use or disclosure requires authorization by the employee. Restriction on Uses and Disclosures. Individual employees have the right to request restrictions on the use and disclosure of his/her protected health information. If the requested restrictions are within the scope of the law, the PTC would not use or disclose PHI that is inconsistent with the restrictions, unless mandated by law to do so. Privacy Officer. The Commission has designated the Manager of Compensation and Benefits, Human Resources Department as the HIPAA Privacy Officer. An overview of the duties and responsibilities of the Privacy Officer are outlined in the definition section of this policy. Any questions, concerns or complaints regarding compliance with HIPAA should be directed to the Privacy Officer. Employee Training. All employees will receive training on the HIPAA policies and procedures. Training will be tailored to the requirements necessary to enable the employee to carry out their job responsibilities. The level of training will depend upon the employee s contact with or access to PHI. Rights of Employees. HIPAA gives an individual the right to access, inspect and obtain a copy of PHI. Employees also have the right to: Request a restriction on certain uses and disclosures of their protected health information. Request amendments to their protected health information. Obtain an accounting of disclosures of their protected health information. Request that their protected health information be communicated by an alternative means or to an alternative address or to an alternative individual. Revoke their consent to use or disclose protected health information to the extent that it has not already been relied upon. File a complaint to the Privacy Officer and/or the Secretary of the U. S. Department of Health and Human Services if they believe their privacy rights have been violated. The Human Resources Department will establish procedures to address individual requests. Violations. All employees are required to comply with the provisions of this policy letter. Employees found to be in violation of this policy will be subject to disciplinary action, up to and including dismissal. Business Associate Agreements. The PTC may enter into a contractual relationship with a business associate that may involve disclosure of PHI. When this occurs, our contract with the [5]

41 outside organization will include a business associate agreement (see Appendix A). This agreement requires the outside organization to comply with the provisions of HIPAA. The Contracts Administration Department will work with program managers to ensure the appropriate business associate agreements are established. The Privacy Officer and Human Resources Department may develop additional procedures to ensure PTC business practices comply with HIPAA. This Policy Letter supersedes all previous Policy Letters on this subject. [6]

42 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.12 APPROVAL DATE: EFFECTIVE DATE: Vacation Leave Usage for Retirement or Voluntary Separation Human Resources REVISED DATE: A. PURPOSE: To provide a policy for Pennsylvania Turnpike Commission Management/Local 30 First Level Supervisory employees to regulate the use of available vacation leave prior to an employee s retirement date, or resignation if employee s service is vested through the State Employee s Retirement System (SERS). B. SCOPE: This policy is for Management\Local 30 First Level Supervisory employees who retire or who voluntarily separate their employment with vested state service. This procedure is not applicable to persons accepting new employment in a position that is part of the State Employee's Retirement System or the Public School Employees' Retirement System. An employee who is terminated from his/her position is ineligible for this benefit. C. GENERAL POLICY: Management or Local 30 First Level Supervisory employees who are retiring as a SERS annuitant, may request to charge all or some of their available vacation leave prior to their retirement date. Use of available vacation leave may also be requested up until the last day of service for an employee who is voluntarily separating employment, as long as the employee s service time is, or will be, vested by SERS by the time his/her available vacation leave is exhausted. This policy addresses the date pension payments begin, vested service, leave accruals, holiday pay, medical benefits, life insurance, full-time vs. part-time status, return to work rights to the position and guidelines for filling the employee s position. 1. Retiring Employees An employee may use available vacation leave up until his/her retirement begins as authorized by the Chief/Director. The employee s pension payments will begin from SERS after the employee s available vacation leave has been exhausted and actual retirement begins. [1]

43 The employee will not accrue sick and vacation leave nor be eligible for holiday pay after their last day worked and while using his/her available vacation leave up until the date retirement begins. The employee's salary will be frozen at the salary they were receiving on the last day worked. The employee will not receive future salary increases after their last day worked. The employee will remain in active medical benefit status until the first day of the month following the date that the actual retirement begins. On the first day of the month following the retirement date, the retiree will be transferred to a retiree medical group plan if he or she is eligible for medical benefits by meeting the service requirements as outlined by the PTC for management employees. The employee s life insurance policy will remain in effect until the last day the employee is in active status. This leave may not be used to create a part-time schedule (i.e., 3 days a week) until the date of retirement or resignation. This leave must be taken consecutively without interruption. Upon acceptance of the employee s resignation he or she will have no rights to return to the position. Accordingly, the Commission may immediately proceed to fill the vacancy. 2. Separating Employees Employees may use available vacation leave when leaving a position in which he or she has vested service as authorized by the Chief/Director. The employee will not accrue sick and vacation leave after their last day worked nor are they eligible for holiday pay and while using their available vacation leave up until the date of his or her resignation with vested service. The employee's salary will be frozen at the salary they were receiving on the last day worked. The employee will not receive future salary increases after their last day worked. Active employee medical benefits will remain in effect until the end of the month in which the employee last worked. The employee s life insurance policy will remain in effect until the last day the employee is in active status. This leave may not be used to create a part-time schedule (i.e., 3 days a week) until the date of retirement or resignation. This leave must be taken consecutively without interruption. Upon acceptance of the employee s resignation he/she will have no rights to return to the position. The Pennsylvania Turnpike Commission may immediately proceed to fill the vacancy. D. DEFINITIONS: [2]

44 Available Vacation Leave- Shall mean the available balance of accrued vacation leave at the time the request for retirement or separation is approved. Vested Service- State service is vested through SERS when an employee has five years of service and is under age 60 or three years of service and is over age 60. Active Medical Benefit Status- Shall mean that employees will have active medical benefits during this time period. E. PROCEDURES: The employee should request in his/her resignation letter to use available vacation leave" prior to separating employment. The employee s immediate supervisor must receive this letter 10 days prior to beginning the leave. The adjusted date of actual resignation should be the date the employee will no longer be in active status. This date will be after the employee exhausts his/her available vacation leave or uses the amount of leave requested. The request for leave prior to resignation will be reviewed by the Chief/Director. If approved, the Chief/Director should initial the letter and forward it along with the Recommendation for Personnel Action (72-52) form for the prospective retiree or person resigning with vested service to Human Resources. Human Resources will verify the actual "available vacation leave". If the employee qualifies for leave under this policy, the Director of Human Resources will send the employee a letter indicating actual "available vacation leave" and an acceptance his or her resignation. A copy of the letter will be sent back to the Chief/Director of the Department. Human Resources will ensure the employee's salary is frozen at the salary they were receiving on the last day worked and the employee s vacation and sick leave accruals end on the last day they are in active status. The Payroll Department will ensure that paychecks continue bi-weekly until available vacation leave is exhausted and that holiday pay is not given to employees in this leave status. Retirement deductions will continue to be taken out of the bi-weekly paychecks while the employee is using his\her available vacation leave. Upon acceptance of the employee s resignation, the Chief/Director of the Department may treat the position as a vacancy and begin the process to fill the position. As long as there is sufficient funding in the Department budget, the position may be posted and filled prior to the actual last day of the employee s vacation leave by following the appropriate approval process. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

45 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.13 APPROVAL DATE: EFFECTIVE DATE: Compliance with the PA Whistleblower Law Compliance REVISED DATE: A. PURPOSE: The purpose of this policy is to ensure the compliance of the Pennsylvania Turnpike Commission with the statutes contained in PA Act 169 of 1986, known as the Whistleblower Act, and to set guidelines for the protection of employees that report, in good faith, acts of wrongdoing or waste to the PTC or appropriate enforcement agency. B. SCOPE: This policy applies to all Commission employees in all locations. It provides information regarding the Whistleblower Law (PA Act 169 of 1986) codified at 43 P.S C. GENERAL POLICY: It is the policy of the Pennsylvania Turnpike Commission that all employees shall be afforded protection under the Act of December 12, 1986, known as the Whistleblower Law. The Law provides legal protections to public employees who report, in good faith, wrongdoing or waste to their employer or to an appropriate enforcement agency. D. DEFINITIONS: Appropriate authority- A Federal, State or local government body, agency or organization having jurisdiction over criminal law enforcement, regulatory violations, professional conduct or ethics, or waste; or a member, officer, agent, representative or supervisory employee of the body, agency or organization. The term includes, but is not limited to, the Office of Attorney General, the Department of the Auditor General, the Treasury Department, the General Assembly and committees of the General Assembly having the power and duty to investigate criminal law enforcement, regulatory violations, professional conduct or ethics, or waste. Employee- A person who performs a service for wages or other remuneration under a contract of hire, written or oral, express or implied, for a public body. [1]

46 Employer- A person supervising one or more employees, including the employee in question; a superior of that supervisor; or an agent of a public body. Good faith report- A report of conduct defined in this act as wrongdoing or waste, which is made without malice or consideration of personal benefit, and which the person making the report has reasonable cause to believe is true. Public body- All of the following: (1) A State officer, agency, department, division, bureau, board, commission, council, authority or other body in the executive branch of State government. (2) A county, city, township, regional governing body, council, school district, special district or municipal corporation, or a board, department, commission, council or agency. (3) Any other body which is created by Commonwealth or political subdivision authority or which is funded in any amount by or through Commonwealth or political subdivision authority or a member or employee of that body. Waste- An employer's conduct or omissions that result in substantial abuse, misuse, destruction or loss of funds or resources belonging to or derived from Commonwealth or political subdivision sources. Whistleblower- A person who witnesses or has evidence of wrongdoing or waste while employed and who makes a good faith report of the wrongdoing or waste, verbally or in writing, to one of the person's superiors, to an agent of the employer or to an appropriate authority. Wrongdoing- A violation which is not of a merely technical or minimal nature of a Federal or State statute or regulation, of a political subdivision ordinance or regulation or of a code of conduct or ethics designed to protect the interest of the public or the employer. E. PROCEDURES: a. The Pennsylvania Turnpike Commission is required to post notices and use other appropriate means to notify employees and keep them informed of protections and obligations provided under the Whistleblower Law. A copy of the enclosure will be posted at each Commission location. The notification includes the full text of the Whistleblower Law. All employees will be made aware of the notification and where it is posted. b. The Human Resources department will ensure that newly hired employees are informed of the provisions of the Whistleblower Law. In addition, provisions of the law will be incorporated into appropriate supervisory and management training programs. [2]

47 c. Employers may not discharge, threaten or otherwise discriminate or retaliate against an employee regarding the employee's compensation, terms, conditions, location or privileges of employment because the employee or a person acting on behalf of the employee: (1) Makes a good faith report or is about to report, verbally or in writing, an instance of wrongdoing or waste to the Commission s Office of Inspector General, or to an appropriate enforcement authority. (2) Is requested by an appropriate enforcement authority to participate in an investigation, hearing, inquiry, or court action. d. Within 180 days after an alleged violation of the Whistleblower Law, the affected employee may bring a civil action in court for injunctive relief and/or damages. The employee must show by a preponderance of evidence that, prior to the alleged reprisal, he or she had reported or was about to report an instance of wrongdoing or waste to the employer or to an appropriate law enforcement authority. e. In defending against charges, the employer must provide a preponderance of evidence proving that action against the employee occurred for separate and legitimate reasons. f. Remedies and penalties for violation of the law may include the following: (1) Reinstatement of an employee, payment of back wages, reinstatement of fringe benefits and seniority rights, actual damages, or a combination of these remedies. The court may also award the complainant attorney s fees and costs of litigation. (2) Against a person acting under the employer's authority, a civil fine of not more than $500 and/or suspension from the public service for not more than six months. [3]

48 EMPLOYEE NOTIFICATION WHISTLEBLOWER LAW As of February 10, 1987, public employees are covered by the provisions of the Whistleblower Law, Act The law provides legal protections to public employees who report wrongdoing or waste to their employer or to an appropriate enforcement agency. The text of the act is as follows: Providing protection for employees who report a violation or suspected violation of State, local or Federal law; providing protection for employees who participate in hearings, investigations, legislative inquiries or court actions; and prescribing remedies and penalties. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Short title. This act shall be known and may be cited as the Whistleblower Law. Section 2. Definitions. The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Appropriate authority." A Federal, State or local government body, agency or organization having jurisdiction over criminal law enforcement, regulatory violations, professional conduct or ethics, or waste; or a member, officer, agent, representative or supervisory employee of the body, agency or organization. The term includes, but is not limited to, the Office of Attorney General, the Department of the Auditor General, the Treasury Department, the General Assembly and committees of the General Assembly having the power and duty to investigate criminal law enforcement, regulatory violations, professional conduct or ethics, or waste. "Employee." A person who performs a service for wages or other remuneration under a contract of hire, written or oral, express or implied, for a public body. "Employer." A person supervising one or more employees, including the employee in question; a superior of that supervisor; or an agent of a public body. "Good faith report." A report of conduct defined in this act as wrongdoing or waste, which is made without malice or consideration of personal benefit, and which the person making the report has reasonable cause to believe is true. "Public body." All of the following: (1) A State officer, agency, department, division, bureau, board, commission, council, authority or other body in the executive branch of State government. (2) A county, city, township, regional governing body, council, school district, special district or municipal corporation, or a board, department, commission, council or agency. [4]

49 (3) Any other body which is created by Commonwealth or political subdivision authority or which is funded IN ANY AMOUNT by or through Commonwealth or political subdivision authority or a member or employee of that body. "Waste." An employer's conduct or omissions that result in substantial abuse, misuse, destruction or loss of funds or resources belonging to or derived from Commonwealth or political subdivision sources. "Whistleblower." A person who witnesses or has evidence of wrongdoing or waste while employed and who makes a good faith report of the wrongdoing or waste, verbally or in writing, to one of the person's superiors, to an agent of the employer or to an appropriate authority. "Wrongdoing." A violation which is not of a merely technical or minimal nature of a Federal or State statute or regulation, of a political subdivision ordinance or regulation or of a code of conduct or ethics designed to protect the interest of the public or the employer. Section 3. Protection of employees. (a) Persons not to be discharged. No employer may discharge, threaten or otherwise discriminate or retaliate against an employee regarding the employee's compensation, terms, conditions, location or privileges of employment because the employee or a person acting on behalf of the employee makes a good faith report or is about to report, verbally or in writing, to the employer or appropriate authority an instance of wrongdoing or waste. (b) Discrimination prohibited. No employer may discharge, threaten or otherwise discriminate or retaliate against an employee regarding the employee's compensation, terms, conditions, location or privileges of employment because the employee is requested by an appropriate authority to participate in an investigation, hearing or inquiry held by an appropriate authority or in a court action. Section 4. Remedies. (a) Civil action. A person who alleges a violation of this act may bring a civil action in a court of competent jurisdiction for appropriate injunctive relief or damages, or both, within 180 days after the occurrence of the alleged violation. (b) Necessary showing of evidence. An employee alleging a violation of this act must show by a preponderance of the evidence that, prior to the alleged reprisal, the employee or person acting on behalf of the employee had reported or was about to report in good faith, verbally or in writing, an instance of wrongdoing or waste to the employer or an appropriate authority. (c) Defense. It shall be a defense to an action under this section if the defendant proves by a preponderance of the evidence that the action by the employer occurred for separate and legitimate reasons, which are not merely pretextual. (d) Civil service employees. An employee covered by civil service who contests a civil service action, believing it to be motivated by his having made a good faith report, verbally or in writing, of an instance [5]

50 of wrongdoing or waste, may submit as admissible evidence any or all material relating to the action as whistleblower and to the resulting alleged reprisal. Section 5. Enforcement. A court, in rendering a judgment in an action brought under this act, shall order, as the court considers appropriate, reinstatement of the employee, the payment of back wages, full reinstatement of fringe benefits and seniority rights, actual damages or any combination of these remedies. A court may also award the complainant all or a portion of the costs of litigation, including reasonable attorney fees and witness fees, if the court determines that the award is appropriate. Section 6. Penalties. A person who, under color of an employer's authority, violates this act shall be liable for a civil fine of not more than $500. Additionally, except where the person holds an elected public office, if the court specifically finds that the person, while in the employment of the Commonwealth or a political subdivision, committed a violation of this act with the intent to discourage the disclosure of criminal activity, the court may order the person's suspension from public service for not more than six months. A civil fine, which is ordered under this section, shall be paid to the State Treasurer for deposit into the General Fund. Section 7. Construction. This act shall not be construed to require an employer to compensate an employee for participation in an investigation, hearing or inquiry held by an appropriate authority, or impair the rights of any person under a collective bargaining agreement. Section 8. Notice. An employer shall post notices and use other appropriate means to notify employees and keep them informed of protections and obligations under this act. Section 9. Effective date. This act shall take effect immediately. This notice is to be posted at all locations immediately This Policy Letter supersedes all previous Policy Letters on this subject. [6]

51 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.14 APPROVAL DATE: EFFECTIVE DATE: Public Employee Pension Forfeiture Act No Human Resources REVISED DATE: A. PURPOSE: To describe the duties and responsibilities of the Pennsylvania Turnpike Commission (Commission) for reporting to the State Employees Retirement System (SERS) members who are convicted or plead guilty or no defense to certain crimes related to public office or public employment and to provide eligibility guidelines for continuation of Commission-provided health benefits for employees who are convicted or plead guilty or no defense to certain crimes related to public office or public employment. B. SCOPE: This policy applies to all employees of the Commission to the extent that its terms do not conflict with those of a current collective bargaining agreement. C. GENERAL POLICY: a. As a reasonable condition of employment, an employee affirms and reaffirms his or her commitment to perform his or her job with honesty and integrity while employed by the Commission and as a member of SERS, regardless of whether the public employment is on a fulltime or part-time basis. The agreement to perform the term of public service without violating Act (The Pennsylvania Consolidated Statutes of July 8, 1978, (43 P.S ), P.L. 140.) is in effect as long as the individual remains a member of SERS. As such, whether or not a public employee's right to receive a retirement benefit has vested or he or she is in actual receipt of benefits, all previous accumulated rights to receive such benefit are subject to forfeiture by and through the "renewed" agreement which is formed each time a person chooses to become a "public employee or public official" as defined by 1312, or is elected, appointed, promoted, or otherwise changes a job classification as a public official or public employee. For a forfeiture to occur, SERS member must be charged and convicted or plead guilty or no defense to a crime listed in Act b. The following criminal offenses as set forth in Title 18 of the Pennsylvania Consolidated Statutes or other enumerated statute when committed by a public official or public employee through his or [1]

52 her public office or position or when his or her public employment places him or her in a position to commit one of the following criminal offenses, can trigger the application of Act : (1) 3922 (relating to theft by deception); (2) 3923 (relating to theft by extortion); (3) 3926 (relating to theft of services); (4) 3927 (relating to theft by failure to make required disposition of funds received). The provisions of paragraphs (1) through (4) shall only apply when the criminal culpability (misconduct) reaches the level of a misdemeanor of the first degree or higher. (5) 4101 (relating to forgery); (6) 4104 (relating to tampering with records or identification); (7) 4113 (relating to misapplication of entrusted property and property of government or financial institutions) when the criminal culpability (misconduct) reaches the level of misdemeanor of the second degree; (8) 4701 (relating to bribery in official and political matters); (9) 4702 (relating to threats and other improper influence in official and political matters); (10) 4902 (relating to perjury); (11) 4903(a) (relating to false swearing); (12) 4904 (relating to unsworn falsification to authorities); (13) 4906 (relating to false reports to law enforcement authorities); (14) 4907 (relating to tampering with witnesses and informants); (15) 4908 (relating to retaliation against witness or informant); (16) 4909 (relating to witness or informant taking bribes); (17) 4910 (relating to tampering with or fabricating physical evidence); (18) 4911 (relating to tampering with public records or information); (19) 5101 (relating to obstructing administration of law or other governmental function); (20) 5301 (relating to official oppression); [2]

53 (21) 5302 (relating to speculating or wagering on official action or information). (22) Article III, Act of March 4, 1971 (P.L. 6., No. 2), known as the "Tax Reform Code of 1971". c. In addition to the foregoing specific crimes, also included are all criminal offenses as set forth in federal law substantially the same as the crimes listed above. d. If SERS determines that an employee s pension should be forfeited, the Commission will promptly terminate the employee s health coverage provided by the Commission or any of its health insurance providers. The termination of health coverage will be retroactive to the date of the criminal conviction, and any amount paid on behalf of the employee between the date of conviction and the date of pension forfeiture shall be promptly reimbursed to the Commission by the employee. e. This policy does not limit the Commission s ability to impose appropriate discipline, up to and including termination, on an employee following a criminal conviction. D. DEFINITIONS: COBRA Consolidated Omnibus Budget Reconciliation Act which was passed in The law amends the Employee Retirement Income Security Act, the Internal Revenue Code and the Public Health Service Act to provide continuation of group health coverage that otherwise might be terminated. Criminal Conviction Conviction, a plea of guilty or a plea of no defense or no contest to a criminal offense. Health Coverage Medical, Prescription, Dental or Vision insurance. SERS State Employees Retirement System E. PROCEDURES: HR Director Notifies SERS, Bureau of Benefit Administration and the Commission s Legal Department of any possible Act cases. Notification should be given as soon as the member is charged with a crime. If available, notification should include: 1. Location of crime and date 2. Court docket numbers 3. Newspaper articles regarding the crime and the member 4. Sentencing orders 5. Name of court in which proceedings occurred or will occur [3]

54 6. Amount of any monetary loss to the Commission Upon notification by SERS of a pension forfeiture, cancels all health benefits effective as of the date of the criminal conviction. Sends the employee a benefit continuation notice in accordance with COBRA. Health benefits will not continue during any appeal(s) of a conviction or of a pension forfeiture. Any health coverage claims incurred after the date of the criminal conviction shall be the responsibility of the employee. However, if the Commission is later notified by SERS of a pension reinstatement, the employee shall be entitled to reinstatement of Commission health benefits back to the date of cancellation. SERS Upon notification, SERS will determine if the member is subject to pension forfeiture and follow internal procedures to forfeit the pension in accordance with Act Any questions concerning the forfeiture of a member's pension should be directed to SERS, Bureau of Benefit Administration. This Policy Letter supersedes all previous Policy Letters on this subject. [4]

55 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.15 APPROVAL DATE: EFFECTIVE DATE: Approval Authorization Human Resources REVISED DATE: A. PURPOSE: To establish policies, responsibilities and procedures for approving financial transactions and personnel matters. B. SCOPE: This policy sets out the approval authorizations and associated maximum dollar levels required for processing financial transactions and personnel matters within the Commission as set forth herein. It does not address approval of or signatures necessary to enter into a contract or agenda item. Further, this policy does not address procedures or rules for Purchasing, which are covered by Procurement Policy or the Purchasing Manual. This policy applies to all Commission employees who have approval authorization. C. GENERAL POLICY: 1. All financial transactions and all personnel matters must be approved by the Commission or an authorized Commission employee. 2. For any employee authorized to approve a financial transaction(s) and/or personnel matter, a document must be on file in the Secretary Treasurer s office containing a specimen of his/her signature, a list of financial transactions and/or personnel matters he/she is authorized to approve, and the cost centers over which he/she has approval authority. 3. An employee shall be designated to approve financial transaction and/or personnel matters as set forth in Appendix A. 4. Appendix A identified the limits or authorization approvals that are established for employees as it relates to each type of financial transaction and/or personnel matter. Appendix A includes: a. The approval signatures for each type of financial transaction and/or personnel matter b. The maximum dollar limit authorized where applicable. 5. The CEO or his designee shall review and approve a list of all individuals designated with approval authority, which shall be provided to him by the Secretary Treasurer s Office at a minimum of once annually. 6. Each person approving a financial transaction or personnel matter must affix his/her signature to the appropriate document either physically or electronically. 7. No individual at the Commission may approve any financial transaction or personnel matter that accrued personal benefit to the individual. 1 of 10

56 8. No exceptions to the policy are permitted without Commission approval. D. PROCEDURES: 1. Designating Signature Authority When an employee is hired, transferred or promoted into a position with approval authority, the department head shall complete a Signature Authorization Control Form and forward it to the Secretary Treasurer s Office with a copy to the Human Resources and Information Technology Departments. Upon receipt, the IT Department shall immediately enable or disable the approval authority in accordance with the Signature Authorization Control Form. 2. Removing Signature Authority When an employee with approval authority terminates his or her employment with the Commission or when the Commission transfers or promotes an employee into or out of a position with approval authority, the department head shall complete a Signature Authorization Control Form and forward it to the Secretary Treasurer s Office, with a copy to the Information Technology Department. Upon receipt, the IT Department shall immediately enable or disable the approval authority in accordance with the Signature Authorization Control Form. 3. Annual Review Process As part of the annual review of authorized approval authority or at any time necessary, a department head may add, remove, or adjust an employee s approval authority. Copies of changes must be forwarded to the Information Technology Department and the Secretary Treasurer s Office. 4. Modifications No modifications to the approval authorities are permitted without Commission Approval. This Policy Letter supersedes all previous Policy Letters on this subject. 2 of 10

57 SIGNATURE AUTHORIZATION CONTROL FORM Check to indicate if this is an Addition Removal Authorized Signatory Reason Name Role Signature Department Head Name Signature CEO/COO Direct Report Name Signature VALIDATION (Accounting) Title Name Signature Comments Forms Should be forwarded to Signature Control in Accounting 3 of 10

58 Appendix A Approval Levels ITEMS CEO or COO DIRECT REPORT OR DESIGNEE CHIEF EXECUTIVE OFFICER COMMISSION APPROVAL SOURCE DOCUMENT Engineering Construction Contracts Change Order-Category 1* Up to $150,000 - Construction Engineering Manager Up to $300,000 - Asst. Chief Engineer Any Category 1 Change Order above the Contingency Amount requires Commission Approval Policy Letter 6.1 Over $300,000 and under contingency amount - Chief Engineer Change Order-Category 2** Requires Commission Approval Policy Letter 6.1 Outside Scope of Agreement Requires Commission Approval Policy Letter 6.1 Final Change Orders Requires Commission Approval Policy Letter 6.1 Final Payments Requires Commission Approval Contracting Policies &Procedures Manual * Category 1 Change Order Adjustments required to meet actual field conditions encountered Work in amounts greater than the original scope Adjustments in quantities to reflect actual work performance Changes in design and/or specifications that maintain the original intent of the project Engineering Utility Relocations Reimbursement letter agreements for utility relocations/ municipality review fees Up to $25,000 with the concurrence of the Legal Dept. Chief Engineer or designee to execute the reimbursement letter agreements Over $25,000 Requires Commission Approval Resolution approved at the September 5, 2006 Commission Meeting G-4 Resolution approved at the November 14, 2006 Commission meeting Appendix A 4 of 10 Appendix Last Updated: November 21, 2012

59 Appendix A Approval Levels ITEMS CEO or COO DIRECT REPORT OR DESIGNEE CHIEF EXECUTIVE OFFICER COMMISSION APPROVAL SOURCE DOCUMENT Purchasing Material Request Purchase Order* Change Orders to P.O. 1. Up to $25,000 Cost Center Mgr. 2. Over $25,000- COO Direct Report 1. Up to $50,000- Procurement and Materials Control Manager 1. Up to $10,000- Procurement and Materials Control Manager N/A N/A PMMS Manual (Section 6) $50,001 - $100,000 Over $100,000 Requires Commission Approval $10,001- $50,000 Over $50,000 Requires Commission Approval Purchasing Policies and Procedures Manual (pg 8) Purchasing Policies and Procedures Manual (pg 44) Contract Administration Agreements/Contracts/ Supplements Requires Commission Approval Policy Letters 6.1 & 7.4 ITQ guidelines (Invitation to Qualify) Up to $10,000 with concurrence of CEO Reported to Commission on Purchasing Report The two ways to obtain approvals are: 1. Approval to negotiate & execute 2. Approval to negotiate only and will have to go back for execution Over $10,000 goes to Commission via PTRC Contracting Policies & Procedures Manual (Section 3, page 9) Contracting Policies & Procedures Manual (attachment) Appendix A 5 of 10 Appendix Last Updated: November 21, 2012

60 Appendix A Approval Levels ITEMS CEO or COO DIRECT REPORT OR DESIGNEE CEO (If CEO position is vacant than COO) COMMISSION APPROVAL SOURCE DOCUMENT Legal Settlements/taxable Court Costs, Recording Fees, Real- Estate Taxes, Municipal and Municipal Authority Assessments, Professional Svcs. Including Attorney, Expert Witness, and Appraisal Fees and All Unappealed Verdicts & Viewers Awards with Interest Accrued Up to $50,000 - Chief Counsel/Deputy Chief Counsel $50,001 to $100, 000 Over $100,000 Requires Commission Approval Resolution amended at the 3/15/2011 Commission Meeting F-12 Approved 12/4/2001 G-14 Reported to Commission Property Damage Claims Workers Compensation Liens, and other Litigation Claims Right-of-Way Acquisitions Up to and including $50,000 Chief Counsel/Deputy Chief Counsel (with concurrence by CFO) Reported to Commission Over $50,000 Requires Commission Approval Requires Commission Approval Resolution amended at the 4/5/2011 Commission Meeting F-8 Approved 12/4/2001 G-14 Initiate Legal action to recover property damage claims and the cost of responding to and cleaning up after accidents Up to $100,000 Over $100,000 Requires Commission Approval Approved 7/7/2009 Agenda Item F-10 Appendix A 6 of 10 Appendix Last Updated: November 21, 2012

61 Appendix A Approval Levels ITEMS CEO or COO DIRECT REPORT OR DESIGNEE CHIEF EXECUTIVE OFFICER COMMISSION APPROVAL SOURCE DOCUMENT Risk Management Auto/General Liability Claims Up to $10,000 - Chief Counsel/Deputy Chief Counsel (with concurrence of CFO) Over $10,000 Requires Commission Approval Resolution approved at the December 4, 2001 Commission Meeting G-14 Property Damage Claim-Write- Off Up to $10,000 - Chief Counsel/Deputy Chief Counsel (with concurrence of CFO Over $10,000 Requires Commission Approval Resolution approved at the December 4, 2001 Commission Meeting G-14 Property Management Transactions Resulting in One- Time or Yearly Income to the Commission Up to $15,000 - Property Manager (with concurrence of Chief Counsel) $15,001 to $20,000 Over $20,000 Requires Commission Approval Policy Letter 9.1 Leases with terms that exceed 10 years and cannot be terminated by the Commission prior to that time Requires Commission Approval Policy Letter 9.1 Appendix A 7 of 10 Appendix Last Updated: November 21, 2012

62 Personnel Matters Authorization for Direct Deposit Request for Duplicate W-2 form Earned Income Tax Questionnaire Sick Leave Request Supervisor/Project Manager Appendix A Approval Levels COO Direct Report or Designee Human Resources CEO Commissioners X Administrative Leave Request X X Personal Leave Request 1-5 days 6-15 days days days Bereavement Leave Request X Childrearing Leave Request X X Civil Leave Request X Military Leave Request X Time Sheets X Identification Card Request Request for Accommodation X X FMLA X X Sick and Accident X X Equity Adjustment X X X X Reclassification X X X X Request to Create Position X X X Request to Post and Fill Position X X X Employee Recognition X X Performance Evaluations X X Appendix A 8 of 10 Appendix Last Updated: November 21, 2012

63 Appendix A Approval Levels Financial Transactions Supervisor/Project Manager COO Direct Report or Designee Finance Department CEO Employee Payroll Adjustment X X X Petty Cash Disbursement X X Travel Expense Voucher X X Conference Seminar, Speaker, Pre-Approval Refund Check Request X X X Wire Transfer X X X Check Request X Invoices-Construction & Design Contracts- (Up to Contract X X Amount) Travel Advance X X X Tuition Reimbursement Request X X X Special Payment Request X X X X X X Beyond bordering states Vehicle and Equipment Supervisor/Project Manager COO Direct Report or Designee CEO Commissioner Vehicle Assignment Request X X Vehicle & Equipment Accident, Theft & Vandalism X Request for Pool Car X Daily Record of Vehicle Operation X Vehicle Inspection Report Appendix A 9 of 10 Appendix Last Updated: November 21, 2012

64 Appendix A Approval Levels Procurement Supervisor/Project Manager COO Direct Report or Designee CEO Commissioner Request for Proposals (RFP) X X X X* Competitive Sealed Bidding X X X X* Sole Source (Contracts) X X and Legal X X Sole Source (Other) X X X X Inventory Activity X Request for Disposal of Used/Obsolete Material/Equipment X Purchasing *Projects in the first two years of the approved Capital Plan do not require Individual approval by the Commission Information Technology Supervisor/Project Manager COO Direct Report or Designee CEO Commissioner Technology Request X X Work Space Needs Request X X Appendix A 10 of 10 Appendix Last Updated: November 21, 2012

65 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.17 APPROVAL DATE: EFFECTIVE DATE: Years of Service Program Executive Office REVISED DATE: A. PURPOSE: The purpose of this policy is to recognize and show appreciation to an employee at a milestone year in his/her career at the Pennsylvania Turnpike Commission (PTC). The achievement of a milestone in years of service demonstrates an employee's interest in serving the PTC and its customer's through continued and dedicated employment with the Commission. B. SCOPE: This policy letter applies to all Commission employees. C. GENERAL POLICY: Employees are eligible to receive a designated pin and item of appreciation after completing years of service with the PTC in increments of five (5) years. Time accrued from prior employment with state government will not count in determining eligibility for the PTC years of service program. Years of service will be calculated by calendar year from the date of hire with the PTC. The years of service awards will be given annually in the year following the achievement of the milestone year. For example: Anyone reaching a milestone year by December 31, 2011 will be given their years of service award in D. DEFINITIONS: Date of Hire- The date of hire includes all prior PTC service time; including any summer employment. E. PROCEDURES: 1. The Chief Executive Officer (CEO), Chief Operating Officer (COO) or their designee will be responsible for managing the years of service appreciation program. 2. The information will be obtained annually by the CEO, COO or their designee from HR. 3. Each milestone year recipient will receive a pin reflecting the year of service achieved and a corresponding item of appreciation during a brief special recognition program held regionally at a PTC facility. [1]

66 4. An eligible employee should attend the special recognition program held in his/her assigned working District. Only employees receiving recognition should attend the special recognition program. If an employee is unable to attend the special recognition program, the pin and item of appreciation will be transported to his/her work location for receipt. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

67 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.18 APPROVAL DATE: EFFECTIVE DATE: Partial and Full-Day Closings Executive Office REVISED DATE: A. PURPOSE: The Pennsylvania Turnpike Commission ( Commission ) establishes the procedures governing the partial or full day closures of its facilities which may be authorized because of hazardous road conditions, emergency circumstances, or other reasons as determined by the Chief Executive Officer (CEO) or his designee. B. SCOPE: This policy letter applies to all regular, supplemental and probationary employees of the Pennsylvania Turnpike Commission at any location. This policy does not apply to summer employees, part-time employees, annuitants, temporary employees or contract employees. C. GENERAL POLICY: The Commission may, due to hazardous road conditions, emergency circumstances, or other reasons, order the partial or full closing of Commission locations. D. DEFINITIONS: Adjusted Dismissal Time: The time that employees are directed to leave the workplace because of hazardous road conditions, emergency circumstances, or other reasons as determined by the CEO or his designee. Adjusted Starting Time: The time that employees are directed to report to the workplace because of hazardous road conditions, emergency circumstances, or other reasons as determined by the CEO or his designee. Administrative Offices: The Central Administration Building, the TIP Building, the Eastern Regional Office, and the Western Regional Office. Alternate Work Schedule: Any Commission employee work schedule other than a standard 8- hour/ 5-consecutive day work schedule. [1]

68 Commission Location: Any structure, facility or location owned or controlled by the Commission to which an employee may be assigned. Commission Locations include Maintenance district offices and sheds, Fare Collection district offices and interchanges, administrative buildings, tunnels, and Engineering trailers. Essential Employees: Employees who are designated as required to work when the closing of a Commission Location is authorized, usually in operations that must provide services around the clock. The designation as an Essential Employee can depend upon an employee s duties as well as the circumstances for the closing. Non-Essential Employees: Employees who are not required to work when the closing of a Commission Location is authorized. The CEO or his designee may, in their sole discretion, designate Non-Essential Employees as Essential based on the nature of the closing. E. PROCEDURES: 1. General a. The CEO or his designee is responsible for authorizing the closing of Commission Locations due to hazardous road conditions, emergency circumstances, or other conditions. b. Partial and full-day closings within the scope of this Policy are not to be considered as holidays. c. Consistent with operational requirements, if the Commission does not authorize the closing of Commission Locations, employees may be allowed to use vacation leave when hazardous road conditions, emergency circumstances, or other conditions cause employees to miss their scheduled work shifts. 2. Partial-Day Closings a. When a partial-day closing is authorized, Non-Essential Employees will be authorized to be absent from work. Such employees will be compensated at their regular rate of pay for the hours of their work shift for which they do not work; the hours for which such employees are paid but do not work because of a partial-day closing will not be counted as hours worked for overtime purposes. Non-Essential Employees assigned to an alternate work schedule will not be required to use leave or work additional hours to fulfill the hours required by their work schedule. b. Essential Employees who are required to work when a partial-day closing has been authorized will be compensated at their regular rate of pay. They will not be given time off at a later date for hours worked during the period of closing. The hours worked by Essential Employees during the period of closing will be counted as hours worked for overtime purposes. c. Essential Employees who do not remain at their assigned location when a partial-day closing has been authorized shall not be paid for the hours they would normally have worked and would be required to use leave unless there is a valid and compelling reason [2]

69 for their absence. If there is not a valid and compelling reason for their absence, the Essential Employee may be subject to discipline. d. Employees on approved leave when a partial-day closing is authorized will be charged with the period of such leave. The hours on paid leave will be counted as hours worked for overtime purposes in accordance with overtime policies. When a partial-day closing is announced before the actual day of closing, employees may cancel approved requests for leave if done so before the end of their full scheduled workday or work shift immediately preceding the partial-day closing. e. For delayed starts, if employees arrive after their Adjusted Starting Time, they will be required to use leave from the beginning of their Adjusted Starting Time to the time of arrival at work. f. For early dismissals: a. If an employee uses approved leave prior to the established adjusted dismissal time, they will be required to use leave from the time they left work through the end of their normal work shift. b. If an employee is on approved leave when an adjusted dismissal is authorized, they will be required to use leave for all of the hours of their normal work shift. g. Employees not scheduled to work when a partial-day closing is authorized shall have that day charged as a scheduled day off and shall not be given time off at a later date or additional pay. 3. Full-Day Closings a. When a full-day closing is authorized, Non-Essential Employees will be authorized to be absent from work. Such employees will be compensated at their regular rate of pay. The hours for which such employees are paid but do not work because of an authorized full-day closing will not be counted as hours worked for overtime purposes. Non-Essential Employees assigned to an alternate work schedule will not be required to use leave or work additional hours to fulfill the hours required by their work schedule. b. Essential Employees who are required to work when a full-day closing has been authorized shall be compensated at their regular rate of pay. They will not be given time off at a later date for hours worked during such a period. The hours worked by Essential Employees during the period of closing will be counted as hours worked for overtime purposes. c. Essential Employees who do not remain at their assigned location when a full-day closing has been authorized shall not be paid for the hours they would normally have worked and would be required to use leave unless there is a valid and compelling reason for their absence. If there is not a valid and compelling reason for their absence, the Essential Employee may be subject to discipline. d. Employees on an approved leave when a full-day closing is authorized shall be charged with the period of such leave. The hours of employees on paid leave will be counted as hours worked for overtime purposes in accordance with overtime policies. When a full-day closing is announced before the actual day of closing, employees may cancel approved requests for leave if done so before the end of their full scheduled workday or work shift immediately preceding the full-day closing. e. Employees not scheduled to work when a full-day closing is authorized shall have that day charged as a scheduled day off and shall not be given time off at a later date or additional pay. [3]

70 4. Extended Closings a. When offices are closed for more than seven consecutive days, the CEO may, in his sole discretion, charge paid leave as provided by, and accordance with the Fair Labor Standards Act. 5. Responsibilities a. The CEO or his designee is responsible for authorizing the closing of Commission Locations. b. The CEO or his designee is responsible for ensuring partial and full-day closing authorizations are communicated to all appropriate departments. 6. Notices a. Notification of a full-day closing (or partial closing due to emergency circumstances) will be placed on the PTC Internet website, the PTC Intranet website and through the Alert PA text message notification system. Notification will also be transmitted to the appropriate building personnel via . If capabilities are not available, contact shall be made via telephone to the senior management employee at that location. This Policy Letter supersedes all previous Policy Letters on this subject. [4]

71 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 2.19 APPROVAL DATE: EFFECTIVE DATE: Pre-Employment Screenings Human Resources REVISED DATE: A. PURPOSE: To obtain accurate information by the Pennsylvania Turnpike Commission( Commission ), through the process of conducting pre-employment screenings, prior to extending a formal offer of employment. This includes the requirement to execute a separate release and authorization, allowing the Commission to conduct the pre-employment screenings, and the notification of status and adverse action procedures. B. SCOPE: This Policy applies to all final candidates, including all current Commission employees, who apply for any open position. C. GENERAL POLICY: It is the policy of the Commission to establish consistent guidelines and procedures based on federal and state laws and regulations for conducting pre-employment screenings, including but not limited to, when considering any applicant for employment who has a prior conviction for a felony or misdemeanor. The Commission shall select, assign and promote employees in accordance with these guidelines and shall not use pre-employment screening information to discriminate on the basis of any class recognized and protected by State or Federal law. D. DEFINITIONS: Applicant Any individual, including any current Commission employee, who submits an application or resume or otherwise applies in writing for any open position. Employee Any individual employed by the Commission in a full-time, part-time, supplemental, intern, or seasonal capacity, or temporary staff member who is assigned to provide services to the Commission pursuant to a temporary staffing vendor agreement. [1]

72 Fair Credit Reporting Act The Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection, dissemination, and the use of consumer information, which can be used for credit evaluation and certain other purposes, including employment. Final Candidate An applicant who meets the advertised minimum qualifications for the open position and is the primary candidate being considered for an employment offer to fill the open position. Pre-Employment Screening The process of gathering and reviewing criminal history records, educational history records, prior employment records, professional or personal references and any required professional license. For purposes of this policy, pre-employment screenings include the process of conducting pre-employment drug screenings. Temporary Staffing Vendor Agreement - An agreement between the Commission and a vendor to assign individuals, on a temporary basis, to provide services to the Commission for a predetermined time period for a specific position or project. Temporary Staff Member - An individual assigned to provide services to the Commission through a temporary staffing vendor agreement and who, unless otherwise provided for in writing, has no reasonable expectation of continued work or permanent employment with the Commission. E. PROCEDURES: Pre-employment screenings for final candidates are initiated by the Commission s Manager of Employment and Staffing, or his/her designee, prior to extending a formal offer of employment. In addition to Pennsylvania courts, the criminal background check may include multi-state and Federal court background checks. Pre-employment screenings (other than drug screenings) are performed by a third party vendor and include information on all felony and misdemeanor convictions and pleas, including no contest pleas of any kind, and information on any pending criminal matters. All preemployment screenings are performed in accordance with The Fair Credit Reporting Act, the Criminal History Record Information Act (as amended), and any other applicable State or Federal statutes. The information obtained as a result of a pre-employment screening will be treated as confidential and authorized employees will be allowed access on a strict need to know basis. Decisions as to suitability for employment are made relevant to the offense and the position for which the individual is being considered and are reviewed on a case-by-case basis. The following factors will be considered in arriving at any final determination: [2]

73 1. The number of offenses and the circumstances of each; 2. The severity of the offense(s); 3. The relevance of the offense to the position for which the individual is being considered; 4. The individual s age at the time the last offense was committed; 5. The time elapsed since the last offense and the application for employment; 6. Evidence that the individual performed the same type of work post-conviction without incident; 7. The individual s rehabilitation efforts, including, but not limited to, education and training; 8. Employment or character references; 9. Any other information that may be relevant for a particular position. The final candidate shall be notified in writing and in accordance with all applicant laws of any adverse information. The Commission shall notify the final candidate of rejection based on information in the consumer report and provide the name, address and phone number of the company that sold the report. In addition, the Commission shall inform the applicant that the company selling the report did not make the hiring decision. The applicant shall be provided a free report (upon request) and can dispute the findings with the company selling the report for completeness and accuracy within sixty (60) days. Final candidates must also successfully complete a pre-employment drug screening, prior to a formal offer of employment. The Commission shall notify the final candidate of rejection based on a positive result of the drug screening. The final candidate shall be informed of the option to be retested within three (3) business days of notification of a positive test result. The final candidate will only be extended a formal offer of employment if the results of a retest are negative. Pre-employment drug screening results are valid for a period up to sixty (60) days. Final candidates who do not begin work within sixty (60) days of administration of a preemployment drug screening will be required to complete a retest. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

74 POLICY POLICY SUBJECT: Social Media PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: Information Technology Communications & Public Relations NUMBER: 2.22 APPROVAL DATE: EFFECTIVE DATE: REVISED DATE: A. PURPOSE: To establish policy, responsibilities and procedures for implementing the acceptable use standards for the use of Commission Technology Resources for Social Media to ensure that employees who use social media as part of their job comply with Pennsylvania Turnpike Commission ( Commission ) mission, vision, values or existing policies. B. SCOPE: This Policy applies to all authorized users to whom Commission approval to utilize Commission Technology Resources for social media has been granted, or who make reference to the Commission when using social media for personal use. C. GENERAL POLICY: The Commission recognizes social media as an important tool of corporate and business engagement. The Commission establishes this policy to provide guidance to authorized users who make reference to the Commission either through use of Commission IT Technology Resources or when using social media for personal use to ensure they follow policy, responsibilities, and procedures. D. DEFINITIONS: Authorized Users- Any employee who receives compensation from the Commission on an hourly, daily, or annual basis, including full time, part time, on a probationary basis or is authorized by statute ( Employees ), as well as Contractors and Independent Consultants that use or have access to Commission Technology Resources. Personal Use- Use of social media through Commission Technology Resources for purposes other than Commission business is subject to all applicable Federal and State laws, the Employee Handbook, Commission Policy Letters and Collective Bargaining Agreements. [1]

75 Social Media- Web-based and mobile technologies used to turn communication into interactive dialogue. This term includes, but is not limited to, blogs, RSS, discussion boards, wikis, video sharing sites, mash-ups and folksonomies. Technology Resources- Commission Technology Resources include, but are not limited to, the following: all data and records, including those pertaining to computer use, internet use, communication and other electronic communications (whether sent, received, or stored), as well as the content of such communications; Commission s computer systems, together with any electronic resource used for communications, which includes, but is not limited to, laptops, individual desktop computers, wired or wireless telephones, cellular phone, smartphones, tablet computers, servers, virtual machines, routers/switches, etc. and further includes use of the internet, electronic mail ( ), instant messaging, texting, voice mail, facsimile, copiers, printers or other electronic messaging through Commission facilities, equipment or networks. E. PROCEDURES: The Chief Operating Officer (COO) or his designee shall approve the list of Authorized Users to utilize social media on behalf of the Commission. The IT department, in coordination with the COO, Communications & Public Relations and Human Resources Departments shall establish a procedure for approval, protocol, responsibilities and administration for use of Social Media. Further, these departments shall collectively develop social media use guidelines and procedures, and provide training resources to Authorized Users. Employees are responsible for determining if information accessed/disseminated using Social Media falls under the provisions of Policy 8.6 (Records Management) and, if applicable, the employee must copy the message to a separate authorized retention location such as a PTC Network drive, where it must be retained as indicated in the PTC Records Retention Schedule. Social Media shall not be used in a manner that violates Commission policies or procedures. All use of Commission IT Technology Resources, including Social Media, must conform to all applicable Federal and State laws, the Employee Handbook, Commission Policy Letters, and Collective Bargaining Agreements. Authorized Users are to ensure protection of electronic records from improper disclosure in accordance all relevant Commission Policies and procedures including, but not limited to, Policy 10.2 (E-Z Pass Customer Information Privacy Policy). Personal Social Media Accounts: Commission employees, as private citizens, do not relinquish their First Amendment rights. However, the United States Supreme Court has held that public employers may legally impose restrictions on an employee s speech that is not a matter of public concern or if the public employer s interest in the efficient provision of services outweighs the employee s interest in the speech. [2]

76 An employee s posting(s) on personal social media accounts may not state or imply that the employee is a spokesperson for the Commission, or that any of the content posted, in whatever format, represents an official policy or position of the Commission, or in any way reflects the views of the Commission regarding any subject. Any employee using personal social media who identifies her/himself as a Commission employee must include the following language: The views and opinions I have posted to this site are my own and do not and are not meant to imply that they reflect any official policy or position of the Pennsylvania Turnpike Commission. Unless directed by the Commission, employees should not use a Commission issued addresses for purposes of establishing a social media account. Failure to adhere to this policy and subsequent procedures for use of Social Media will lead to revocation of authorized use and may subject the Authorized User to further discipline. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

77 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 3.01 APPROVAL DATE: EFFECTIVE DATE: Assistance by Turnpike Employees Traffic Engineering and Operations REVISED DATE: A. PURPOSE: All Pennsylvania Turnpike Commission employees have a responsibility while traveling the Turnpike to render whatever assistance they can safely provide when requested by customers or other Turnpike employees providing their actions do not place their own, or any customer s, safety in jeopardy. B. SCOPE: This policy applies to all employees of the Pennsylvania Turnpike Commission. C. GENERAL POLICY: Pennsylvania Turnpike employees should be prepared at all times to give assistance where needed, particularly when that assistance is requested by customers or other Turnpike employees. Continued efforts in this matter by all employees help in our joint responsibility for customer satisfaction and maintaining a good neighbor image in the minds of our customers. D. DEFINITIONS: Radio equipped vehicles can be used to notify the Operations Center to report accidents, unsafe conditions, customers needing assistance, or any other unusual conditions. Employees with radio or cell phone capability should remain at an incident scene to maintain communications with the Operations Center until the arrival of responding units. Commission employees should take appropriate action to correct unsafe conditions, i.e. removing debris or other road hazards from traffic lanes. E. PROCEDURES: EMPLOYEES SHOULD NEVER TAKE ANY ACTION THAT WOULD PLACE THEIR PERSONAL SAFETY IN JEOPARDY. This Policy Letter supersedes all previous Policy Letters on this subject. [1]

78 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 3.02 APPROVAL DATE: EFFECTIVE DATE: External Employee Communications Legal REVISED DATE: A. PURPOSE: Sometime ago, the employees of the Pennsylvania Turnpike Commission were advised to immediately contact the Chief Counsel and notify him when any person presented himself or herself, at any Turnpike installation, and attempted to obtain information concerning any incident, especially accidents, that occurred on the Pennsylvania Turnpike. This is also true, when any Turnpike employee is approached and requested to make a statement or is served with a subpoena to appear and testify concerning any Turnpike matter or is served with a complaint. It has been brought to my attention that in some cases, the above instructions have been ignored. B. SCOPE: C. GENERAL POLICY: D. DEFINITIONS: E. PROCEDURES: Reiterating our former instructions, henceforth, any employee who becomes aware of an investigation being conducted on the Turnpike, other than one by the Pennsylvania State Police, or is approached by an investigator or is served with a subpoena or complaint, will immediately, before offering any information, contact the office of Chief Counsel of the Turnpike, and notify him of the presence of the individual, and seek his advice as to the method and manner of handling the situation. It is imperative that this procedure be followed in all cases. Failure to do so can result in substantial financial loss to the Commission. Failure to heed this notice may result in suspension or dismissal. This Policy Letter supersedes all previous Policy Letters on this subject. [1]

79 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 3.03 APPROVAL DATE: EFFECTIVE DATE: Sexual Harassment and Sexual Discrimination Office of Diversity and Inclusion REVISED DATE: A. PURPOSE: Title VII of the Civil Rights Act of 1964 and Executive Order , Prohibition of Sexual Harassment in the Commonwealth, dated May 3, 2002, prohibit sexual harassment and sex discrimination. It is also unlawful to retaliate against an individual for opposing employment practices that discriminate based on sex. In accordance with Title VII, this policy is issued to reaffirm the policy and procedure(s) of the Pennsylvania Turnpike Commission on the issues of sexual harassment and sexual discrimination and to inform all personnel of their duties and responsibilities with regard to this subject. B. SCOPE: This policy letter applies to all employees of the Pennsylvania Turnpike Commission, at every level. It provides information and guidelines relating to the Commission s policy against sexual harassment and discrimination and procedures for reporting and handling complaints of violations of the policy. C. GENERAL POLICY: It is the policy of the Pennsylvania Turnpike Commission ( Commission ) to provide an environment which is free of sexual harassment and discrimination. Sexual harassment and discrimination are prohibited by state and federal law as well as by the Commission s Equal Opportunity Policy. Sexual harassment or discrimination by any employee or non-employee, including any employee of a vendor or contractor, will not be tolerated. The Commission is committed to the proposition that its employees and others working at or visiting its facilities are entitled to be treated in a respectful, dignified and non-offensive manner. It is a violation of Commission policy for any employee to sexually harass or discriminate against another employee, including an employee of the same sex, by: 1. engaging in sexually based verbal, non-verbal or physical conduct of an unwelcome or offensive nature; or [1]

80 2. making unwelcome sexual advances or requests for sexual favors or other verbal, non-verbal or physical conduct of a sexual nature a condition (explicit or implicit) of an individual s employment; 3. making submission to or rejection of such conduct the basis for employment decisions affecting the individual; or 4. creating an intimidating, hostile or offensive working environment by such conduct; or 5. engaging in such conduct with the purpose or effect of unreasonably interfering with an individual s work performance; or 6. treating a person or class of persons unequally based on gender; or 7. denying employment opportunities or benefits to an individual because another individual has submitted to sexual advances or requests for sexual favors and has received employment opportunities and benefits in return (often referred to as third party sexual harassment). It is also a violation of Commission policy for any employee to subject customers of or visitors to Commission facilities to sexual harassment or discrimination of any nature. This policy is gender-neutral. That is, the policy refers to unwanted attention from: male employees to female employees, female employees to male employees, and same gender sexual harassment or discrimination. D. DEFINITIONS: 1. The term sexual harassment does not refer to behavior or occasional compliments of socially acceptable nature. Rather, it refers to behavior that is not welcome, that is personally offensive, that fails to respect the rights of others and that interferes with respectful interaction in the workplace. The terms sexual harassment and discrimination are used interchangeably for purposes of this policy. 2. The term discrimination as used in this policy refers only to sexual discrimination, not to any other form of discrimination such as race, age, national origin, etc. 3. The term verbal harassment or conduct includes, but is not limited to, sexual innuendoes, suggestive comments, jokes of a sexual nature, sexual propositions or threats. 4. The term non-verbal harassment or conduct includes, but is not limited to, sexually suggestive pictures or objects; graphic commentaries, written material or electronic communication; suggestive or insulting sounds; leering, whistling or obscene gestures. [2]

81 5. The term physical harassment or conduct includes, but is not limited to, unwelcome touching, pinching, brushing the body, coerced sexual acts or assault. E. PROCEDURES: 1. Any employee, including but not limited to a manager, supervisor, department head or director, who acts in violation of this policy shall be subject to discipline up to and including suspension or termination. 2. Supervisory personnel have the responsibility to insure that this policy is adhered to and shall take whatever action is necessary to insure that none of their subordinates engage in sexually harassing or discriminatory behavior. 3. Any employee who feels that he or she has been sexually harassed or discriminated against is encouraged to keep a record of the employee(s) involved; the time, date and place of the incident(s); the nature of the alleged harassment or discrimination; and the identity of any witness(es). 4. Any employee who feels that he or she has been sexually harassed or discriminated against, including but not limited to the conduct detailed in this policy, should immediately bring the problem to the attention of his or her immediate supervisor. An employee may also report the problem directly to the Office of Diversity and Inclusion. 5. Supervisory personnel will take all steps necessary to immediately address any alleged sexually harassing or discriminatory behavior by any of their subordinates when such behavior is brought to their attention, either officially or unofficially. 6. All complaints will be investigated in a timely and confidential manner. In no event will information concerning a complaint be released to a third party (except as required by the Pennsylvania Human Relations Commission, Equal Employment Opportunity Commission or as otherwise required by law). The Commission will use its best efforts to prevent discussion of the information outside the investigation and will instruct parties involved in the investigation not to discuss the matter. 7. Investigation of a complaint will normally include conferring with the parties involved and any named or apparent witness(es). Employees shall be guaranteed a fair and impartial investigation. All employees shall be protected from coercion, intimidation, retaliation, interference or discrimination for filing a complaint or assisting in an investigation. 8. If the investigation reveals that the complaint is valid, the Commission will timely address the policy violation and take appropriate disciplinary action necessary to prevent a recurrence, up to and including suspension or termination. 9. If the employee who complains of sexual harassment or discrimination is not satisfied with the response from his or her immediate supervisor, or if that supervisor is perceived to be involved in the sexually harassing or discriminatory behavior, the employee should bring the matter to the attention of the person who is next in line in the chain of command or to the Office of Diversity and Inclusion which will promptly investigate the complaint as set forth above. Complaints may be filed with Diversity and Inclusion at: [3]

82 The Pennsylvania Turnpike Commission Office of Diversity and Inclusion P.O. Box Harrisburg, Pennsylvania (717) (Within 90 days of incident) The determination of the Office of Diversity and Inclusion shall represent the final decision of the Pennsylvania Turnpike Commission on the issue raised by the employee who complains of sexual harassment. 10. If any employee who complains of sexual harassment or discrimination is not satisfied with the results or recommendations of the Pennsylvania Turnpike Commission s internal findings, he or she may forward the complaint to the agencies listed below: PA Human Relations Commission: ( Harrisburg Regional Office Office Pittsburgh Regional Office 333 Market Street 301 Fifth Avenue Harrisburg, PA Suite 390, Piatt Place (717) (Voice) Pittsburgh, Pennsylvania (717) (TTY) (412) (Voice) (412) (TTY) Philadelphia Regional Office 110 North 8th Street Suite 501 Philadelphia, Pennsylvania (215) (Voice) (215) (TTY Equal Employment Opportunity Commission: (Within 180 days of incident) Philadelphia District Office Pittsburgh Area Office 801 Market Street 1000 Liberty Avenue Suite 1300 Suite 1112 Philadelphia, PA Pittsburgh, PA (800) (Voice) (800) (Voice) (800) (TTY) (412) (TTY) (Within 300 days of incident) [4]

83 This Policy Letter supersedes all previous Policy Letters on this subject. [5]

84 POLICY SUBJECT: Smoking Policy PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: Human Resources NUMBER: 3.04 APPROVAL DATE: EFFECTIVE DATE: REVISED DATE: A. PURPOSE: The purpose of this policy is to promote a safe and healthy environment for Pennsylvania Turnpike Commission (Commission) employees and the public. It is intended to reduce the health risks associated with exposure to tobacco smoke while developing clear guidelines for smoking on Commission property. The Pennsylvania Clean Indoor Air Act of 2008 places restrictions on smoking in public places and enclosed or substantially enclosed workplaces and has set forth guidelines regarding smoking and its effect on non-smokers and the public. Additionally, the United States Green Building Council has set guidelines for buildings that have attained the LEED (Leadership in Energy and Environmental Design) Certification as an environmentally designed building. B. SCOPE: This policy letter applies to employees, supplemental employees, summer employees, contractors, customers and visitors of the Commission. It provides information and guidelines relating to smoking on Commission property. C. GENERAL POLICY: It shall be the policy of the Commission to regulate smoking on Commission property in accordance with the Pennsylvania Clean Indoor Air Act of 2008 and the United States Green Building Council to accommodate the preferences of both the smoker and non-smoker. D. DEFINITIONS: Electronic Cigarette- A battery-operated device that contains cartridges filled with a combination of nicotine, flavor and chemicals that are turned into vapor which is inhaled by the user Smoking- The carrying by a person of a lighted cigar, cigarette, pipe or other lighted smoking device. [1]

85 Workplace- An enclosed or substantially enclosed area serving as a place of employment, occupation, business, trade, craft, or professional volunteer activity. E. PROCEDURES: 1. Commission Facilities a. Smoking is prohibited within the confines of all Commission facilities, including but not limited to Administrative buildings, Maintenance sheds and offices, Fare Collection interchange buildings and toll booths and Engineering trailers. This prohibition is extended to electronic cigarettes and any similar device. b. Smoking is prohibited where combustible fumes can collect, such as in a garage, near fuel pumps, in storage facilities, areas where chemicals are used, and all other designated places where an occupational safety or health hazard might exist. c. Smoking is permitted outside Commission facilities at designated locations only. Designated smoking locations shall be at least 25 feet from any building entrance, external restroom, operable windows and outdoor air intakes. d. Signs defining non-smoking areas shall be posted at main entrances of all Commission facilities. The Facilities and Energy Management (FEMO) Department is responsible for obtaining and supplying smoking and non-smoking area signage. e. The individual/department responsible for directing operations at the facility will ensure signs are posted at designated smoking areas, and that the designated smoking location will not inconvenience non smokers, customers or any other individuals. The Director of Maintenance will ensure all changes are implemented at Maintenance locations. The Director of Fare Collections and Field Operations will ensure that all changes are made at Fare Collection Interchanges, district offices and the Western Regional Office The Chief Engineer will ensure that all changes are implemented at Engineering field offices. 2. Company Vehicles a. Smoking is prohibited in all Commission owned vehicles, including pool vehicles, all Maintenance and Fare Collection vehicles, Engineering vehicles, Safety vehicles and vehicles assigned to employees. This prohibition is extended to electronic cigarettes and any similar device. b. The Maintenance Department will ensure that no-smoking stickers are placed inside all Commission vehicles. 3. Individuals shall only be permitted to engage in smoking as part of, and not in addition to scheduled breaks and lunch periods in designated areas. 4. The provisions of this policy should be made a part of the orientation of new employees, included in employee handbooks, and incorporated into appropriate training programs. [2]

86 5. Nothing contained in this policy shall be construed to impair or diminish or otherwise affect any contractual agreement, collective bargaining agreement, or collective bargaining procedures. 6. Supervisors have the responsibility to ensure that this policy is adhered to and shall take appropriate action to ensure compliance. 7. Individuals found in violation of this policy shall be subject to discipline, which may include the loss of Commission vehicle privileges, suspension or termination. 8. A copy of this policy will be provided to any employee upon request, and is available on the Commission intranet site. 9. Questions regarding the implementation and enforcement of this policy shall be referred to the Director of Human Resources. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

87 POLICY POLICY SUBJECT: Substance Abuse PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: Human Resources NUMBER: 3.05 APPROVAL DATE: EFFECTIVE DATE: REVISED DATE: A. PURPOSE: The Pennsylvania Turnpike Commission is concerned with the well being and safety of its employees and the traveling public and will continue to promote a safe work environment. Illegal or inappropriate use of alcohol and other controlled drugs affect the efficiency and effectiveness of the operation. The Pennsylvania Turnpike Commission will make every effort to promote and maintain a drug free work place. B. SCOPE: C. GENERAL POLICY: The unlawful manufacturing, dispensing, possessing or use of alcohol or any other controlled drug while on duty or on the premises of the Pennsylvania Turnpike Commission is prohibited. Employees violating any of these provisions subject themselves to appropriate discipline up to and including discharge. D. DEFINITIONS: E. PROCEDURES: Employee Responsibility Employees who have a substance abuse or alcohol related problem are strongly encouraged to seek help. Such employee should discuss the problem with their supervisor or someone in the chain of command. If any additional conversation or information is necessary, the Director of Human Resources will be available to discuss this matter. Employees should not delay treatment, especially when performance problems exist. Any employee arrested and/or convicted of violating any statute governing the unlawful manufacturing, distributing, dispensing, possessing or use of alcohol or other controlled drugs shall notify their supervisor within five (5) days. [1]

88 Supervisor s Role Normally a pattern of declining job performance occurs over a period of weeks or months. The supervisor is usually the person to detect change in an employee s behavior or job performance. It is the supervisor s responsibility to take normal corrective actions. If substance abuse is suspected, the supervisor should not diagnose or counsel but should encourage the employee to seek counseling if he/she has a problem. Rehabilitation Program Employees who enroll in an approved rehabilitation program must satisfactorily complete the program before any consideration for continued employment will be given. Discipline Employees who violate work rules will be disciplined accordingly. Employees will not be disciplined for admitting to a problem and enrolling in an approved program. Nothing in this policy prevents the employer from taking proper discipline for just cause. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

89 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 3.06 APPROVAL DATE: EFFECTIVE DATE: Driver s License Records Checks and Loss of Driving Privilege Human Resources REVISED DATE: A. PURPOSE: To establish the Pennsylvania Turnpike Commission (PTC) policy governing an employee s loss of driving privilege and to set guidelines and procedures for all employees to ensure proper licensing. B. SCOPE: This policy applies to all employees of the PTC workforce whose positions require the possession of a driver s license for the performance of their duties. C. GENERAL POLICY: As an employer and entity within the transportation industry it is imperative that the PTC ensures that its employees are properly licensed to operate vehicles and equipment in the performance of their duties. Employees who drive in the furtherance of the PTC s mission must do so legally and safely. Adherence to this policy is essential to ensure that the foregoing is accomplished. Each employee will be held accountable for fulfilling his/her responsibilities identified in this policy and will be subject to appropriate disciplinary action up to and including termination for failing to do so. Driver s License Records Reviews Monthly confidential reviews are conducted of employee driver's license records for employees who are: 1) required to possess a valid driver's license based on their job description, 2) are permanently assigned a PTC vehicle, or 3) who operate any vehicle or piece of equipment requiring a driver's license in the scope of PTC business. Additionally, specific confidential reviews are conducted when there is reason to believe that an employee has violated this policy. Possession of Valid Driver s License Employees are to be in possession of the appropriate driver s license and, if applicable endorsements when operating a vehicle or piece of equipment on PTC business. In accordance with Title 75, the Pennsylvania Vehicle Code, employees may not operate Commercial Driver s [1]

90 License (CDL) covered vehicles without being in possession of a valid CDL and the appropriate endorsements to the vehicle being operated. Notification of Loss of Driving Privilege Employees in positions requiring possession of a driver's license must notify their supervisor by their next scheduled work day of any loss or impending loss of their driving privilege. Notification of Ignition Interlock Employees who are required to use an ignition interlock on any vehicle must notify their supervisor by their next scheduled work day. The PTC does not permit employees to operate its vehicles or equipment while an employee is subject to an ignition interlock restriction. Installation of ignition interlock systems on PTC vehicles or equipment is prohibited. Loss of Driving Privilege In the event a driving privilege is lost for an employee who is required to have a valid driver s license, the employee may be subject to disciplinary action up to and including termination. The following are examples of violations to this policy but is not an exhaustive list: Any employee who operates a vehicle or piece of equipment in the scope of PTC business without a valid driver s license of the appropriate class, including CDL and other required endorsements. Any employee in a position that requires driving in the scope of PTC business who allows his/her license to expire, whether or not the employee has actually operated a PTC vehicle. Any employee who must possess a CDL and required endorsements to perform his/her job duties and is not in possession of a valid driver s license or required endorsements. Any employee who does not notify the PTC of his/her loss or impending loss of driving privileges or ignition interlock restriction on his/her next scheduled work day. Management Employees: When an employee s job description requires possession of a valid driver s license, the PTC may at its sole discretion consider potential accommodations. Factors considered include but are not limited to: Reason for loss of license, length of suspension, severity of offense and if accommodations are possible for his/her specific job. If travel is part of the employee s duties, he/she will be expected to continue to perform those duties without additional expense to the PTC or impact to its operational efficiency. The supervisor and the department head may review situations where employees subject to an ignition interlock restriction may operate their personal vehicle with the ignition interlock system for PTC travel. Such situations can only occur if they are in accordance with the PTC travel policy. Employees using an ignition interlock system in their personal vehicle (whether [2]

91 owned, leased or otherwise) will not be eligible for mileage reimbursement or a vehicle stipend as provided by Policy 6.4. If the employee is unable to fulfill his/her duties, disciplinary action, up to and including termination, may result. Union Employees: All union employees should refer to their collective bargaining agreement for all disciplinary actions regarding loss of driving privileges. Employee Suspension and Medical Coverage If the employee is suspended, the employee is in a non-compensable status; therefore, leading to the cancellation of their medical benefits. Employees who are suspended will lose medical benefits on the first of the month following their suspension date unless the employee elects to self-pay for benefits under Cobra. Medical benefits will be reinstated the first of the month following the employee s return from suspension. D. DEFINITIONS: Driver s License Endorsements: Most of the Pennsylvania driver's license endorsements apply to commercial driver s licenses and thus do not apply to persons who currently hold a regular class C license. However, there are exceptions to this such as a motorcycle class. A motorcycle class can be added to any regular driver s license. Some other examples of driver s license endorsements/restrictions are: H authorizes the driver to operate a vehicle transporting hazardous materials. L restricts the driver to vehicles not equipped with air brakes. N authorizes driving tank vehicles. P authorizes driving vehicles carrying passengers. S authorizes the driver to operate a school bus. T authorizes driving double and triple trailers. X represents a combination of hazardous materials and tank vehicle endorsements. Ignition Interlock: A device that is installed on motor vehicles to prohibit individuals under the influence of alcohol from operating the vehicle. Loss of driving privilege: When an individual s driver's license has been cancelled, disqualified, recalled, restricted, revoked, or suspended. This pertains to all classes of both commercial and non-commercial driver's licenses, as well as any other required credentials, e.g. endorsements. CDL call out list: This is a list of employees who maintain their CDL license and request to be added to the call out list for overtime opportunities. Once the Equipment Operator call out list at a location has been exhausted and there is a need for additional manpower, overtime opportunities may then be afforded to these employees to assist with emergency situations or snow removal. [3]

92 Motor Carrier Safety Improvement Act (MCSIA): A federal mandate designed to enhance highway safety that expanded the violations that result in the disqualification of an individual's Commercial Driver's License (CDL), which include high risk traffic offenses in non-cdl vehicles. The Vehicle Code, Title 75. Requires drivers to have in their immediate possession a valid driver s license and if required, the necessary endorsements for the vehicle being driven. E. PROCEDURES: Employees: Employees are required to provide a copy of their driver s license and applicable endorsements to Human Resources if it is a requirement to maintain a valid driver s license as part of his/her job description, if they are on the CDL callout list or as deemed necessary by the Commission. If an employee loses his/her driver s license it is his/her responsibility to notify his/her supervisor on his/her next scheduled work day. The employee is responsible to provide any requested documentation to his/her supervisor regarding the loss or impeding loss of his/her driving privilege. Failure to comply with this procedure may result in discipline up to and including termination. Supervisor: For union employees, supervisors must contact the labor relations department and refer to disciplinary action outlined in collective bargaining agreement. For management employees, supervisors should work with their department head to determine if a reasonable accommodation may be appropriate for the employee s position based on the department s needs. Department heads: Department heads will be responsible to work with the supervisor to evaluate an employee s loss of driving privilege for its effects on PTC operations and to determine what, if any, reasonable accommodation may be recommended. This recommendation shall be forwarded to Human Resources and it should include the specific reasons why the employee should be accommodated or if he/she should be suspended from his/her position pending further action. Human Resources: Human Resources will review requests for accommodation and determine if disciplinary action is appropriate. Human Resources will forward this information to the Chief Operating Officer for final determination. Human Resources is responsible for providing driver s license information to PennDOT for those employees who are 1) required to possess a valid driver's license based on their job description, 2) are permanently assigned a PTC vehicle, or 3) who operate any vehicle or piece of equipment requiring a driver's license in the scope of PTC business including those on the CDL call out list. In the event an employee is found to not have a required driver s license, Human Resources will notify the employee s supervisor and department head. [4]

93 Maintenance: Maintenance will be responsible for providing Human Resources with an up to date list of those employees on the CDL call out list in September of each year. Upon receipt, Human Resources will conduct driver s license reviews for these employees as part of the overall verification process. This Policy Letter supersedes all previous Policy Letters on this subject. [5]

94 Acknowledgement of Policy 3.6 Driver s License Records Checks and Loss of Driving Privilege I acknowledge receipt of policy 3.6, Driver s License Records Checks and Loss of Driving Privilege and agree to abide by and comply with all provisions of this policy applicable to my position. I will provide my driver s license information to Human Resources if my job description requires a valid driver s license, if I am on the CDL callout list or for any reason if deemed necessary by the PTC that is relative to my position or job assignment. I understand that a monthly check will be conducted of my driver s license and any violation may result in disciplinary action up to and including termination of employment. I will not engage in any conduct which violates policy 3.6, Driver s License Records Check and Loss of Driving Privilege and will immediately disclose any circumstances which I reasonably believe may be, or may have been a violation of this policy to my immediate supervisor and/or the human resources department. Print Name: Date: Signature: If it is a requirement of your job description to maintain a valid license or if you are on the CDL call out list please provide the following information and attach copies of your driver s license and endorsements as applicable. Driver s License Number: State: Class: Endorsements: Issue Date: Expiration Date: I understand I will be asked to provide this information at a later date if I change positions and now it is required, if I am placed on the CDL callout list or if otherwise deemed necessary by the PTC. [6]

95 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 3.07 APPROVAL DATE: EFFECTIVE DATE: Workplace Violence Human Resources REVISED DATE: A. PURPOSE: This policy letter establishes our policy governing a safe and secure work environment free from threats, harassment, violence and other potentially harmful acts. B. SCOPE: This policy applies to Threats or Acts of Violence by any person involved in the Commission s operation, including but not limited to Commission Representatives. C. GENERAL POLICY: Threats or Acts of Violence against people or property which involve or affect the Pennsylvania Turnpike Commission [ Commission ] or its Representatives and customers, or which occur on Commission property will not be tolerated. The Commission expects that this policy will be strictly enforced. Physical confrontations, abusive language, threatening gestures or remarks, possession of weapons, or any other actions intended to intimidate or harm coworkers, supervisors, or the public will not be tolerated. Employees who are involved in any of these situations or behaviors on the job or in workrelated incidents off the job will be subject to appropriate disciplinary action. It is a violation of this policy for any Commission Representative, other than members of the Pennsylvania State Police, to carry a firearm, or other instrument of force, on Commission property, or off Commission property when representing the Commission or furthering a legitimate interest of the Commission. Workplace violence by any Commission Representative or agents of an outside vendor, contractor, or consultant doing business with the Pennsylvania Turnpike Commission will not be tolerated. D. DEFINITIONS: Commission Representatives - employees or representatives: employees, contract and temporary employees, and anyone else working on behalf of the Commission. [1]

96 Threats or Acts of Violence- any conduct that creates a hostile, abusive, or intimidating work environment for any employees. Workplace Violence includes, but is not limited to, the following: 1. All verbal or physical Threats or Acts of Violence against people or property occurring on Commission premises, regardless of the relationship between the Commission and the parties involved in the incident; 2. All verbal or physical Threats or Acts of Violence against people or property occurring off Commission premises that involve someone who is acting as a Commission Representative at the time during Commission-approved activities; 3. Any Threats or Acts of Violence, bodily harm, or physical, written or verbal intimidation or coercion by Commission Representatives, which either create a reasonable perception that there may be an intent to harm persons or property, or that actually bring about harm, and which create an intimidating, hostile or offensive working environment; and 4. Any Threats or Acts of Violence, by any Commission Representative towards customers or visitors to Commission facilities. Specific examples of conduct which may be considered an act of violence include, but are not limited to: 1. Hitting or shoving a person, fights and stalking; 2. Intentionally destroying or sabotaging Commission equipment or property, or committing, attempting to commit, or threatening to commit acts of destruction (e.g. arson; bomb threats); 3. Making verbal threats of bodily harm towards an individual, his/her family, friends and associates; 4. Making physical gestures that may be reasonably perceived as threatening or abusive to people, for example, facial grimaces that are intended to threaten a person, and using hand, finger, or other gestures that are obscene or threatening, such as making a hand gesture across the throat connoting cutting someone s throat; 5. Harassing or threatening a person by any method, including but not limited to the telephone, electronic mail, interoffice mail, and telefax; and 6. Suggesting that workplace violence is appropriate. E. PROCEDURES: All Pennsylvania Turnpike Commission Representatives are responsible for creating and maintaining a safe workplace. If employees become aware of or suspect conduct which may violate this policy, [2]

97 including acts by third-parties or non-commission Representatives, they should immediately report their concerns to their immediate supervisor. In the case of matters involving a threat of immediate harm or violence, Commission Representatives should immediately contact the Operations Center. All Threats or Acts of Violence will be taken seriously. All complaints will be investigated in a prompt and thorough manner. After a full investigation, which may include a search of the Commission Representative s office, work area, or locker, any Commission Representative at any level who is determined to have engaged in conduct which has violated this policy will be subject to appropriate discipline and corrective action up to and including termination. In addition, the employee may also be subject to criminal prosecution or other legal action. The Pennsylvania Turnpike Commission expects that all Commission Representatives will continue to act responsibly to establish and maintain a safe and secure work environment free from Threats and Acts of Violence and harm. Questions concerning this policy should be directed to the Director of Human Resources. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

98 POLICY POLICY SUBJECT: Code of Conduct PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: Human Resources NUMBER: 3.10 APPROVAL DATE: EFFECTIVE DATE: REVISED DATE: I. Statement of Purpose and Scope: 1.1. It is the policy of the Pennsylvania Turnpike Commission that efficiency, integrity, appearance and high moral and ethical standards and practices shall prevail in the accomplishment of the work of the Commission This Code of Conduct shall supplement all other provisions under Act 44, Chapter 82 (Turnpike Commission Standards of Conduct) and shall provide guidelines applicable to Members, Executive-Level Employees (as herein defined), and Employees and the Immediate Families of the Members, Executive-Level Employees, and Employees to enable them to avoid any perceived or actual conflict of interest and to promote public confidence in the integrity and impartiality of the Commission. II. Applicability: 2.1. All Members, Executive-Level Employees and other full time, part time or probationary employees (Employees) must adhere to this Code of Conduct. This Code of Conduct also applies to the Immediate Family of Members, Executive- Level Employees and Employees All Members, Executive-Level Employees, and Employees shall participate in an annual training session, provided by the Commission, which addresses this Code of Conduct. III. Definitions: The following words and phrases when used in this Code of Conduct shall have the meanings given to them in this Part unless the context clearly indicates otherwise: [1]

99 3.1. BUSINESS. Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust, governmental body, individual, union, committee, club, group of persons or any legal entity organized for profit ASSOCIATED (WITH A BUSINESS). Any business in which the person or a member of the person s Immediate Family is a director, officer, owner, employee or has a financial interest in a Business CONFIDENTIAL INFORMATION. Information not obtainable from reviewing a public document or from making inquiry to a publicly available source of information CONFLICT or CONFLICT OF INTEREST. Use by a Member, Executive-Level Employee, or Employee of the authority of his or her office or employment or any confidential information received through his or her holding the position of Member, Executive-Level Employee, or Employee or employment for the private pecuniary benefit of himself or herself, the Immediate Family of the Member, Executive-Level Employee, or Employee, or a business with which the Member, Executive-Level Employee, or Employee, or the Immediate Family of the Member, Executive-Level Employee, or Employee is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the Member, Executive-Level Employee, or Employee, the Immediate Family of any Member, Executive-Level Employee, Employee, or a business with which the Member, Executive-Level Employee, or Employee, or the Immediate Family of a Member, Executive-Level Employee, or Employee is associated COMMISSION. The Pennsylvania Turnpike Commission DE MINIMIS ECONOMIC IMPACT. An economic consequence which has an insignificant effect EXECUTIVE-LEVEL EMPLOYEE. The Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Counsel, Chief Engineer, Chief Information Officer, Chief Compliance Officer or any other senior management employee with discretionary powers (including but not limited to the Director of Contracts Administration, Manager of Strategic Sourcing and Asset Management, Contract [2]

100 Management Services Manager and Assistant Chiefs) which may affect the outcome of a Commission action or decision or who functions in press or public relations, legislative liaison, contracts administration, purchasing or development of executive policy. 3.7(a) COMMITTEE MEMBER. Any Executive-Level Employee or Employee who serves on a Commission committee responsible for considering proposals, responses, statements of interest, and/or bids from any person or entity that seeks to do business with the Commission EMPLOYEE. Any person who receives compensation from the Commission on an hourly, daily or annual wage basis. This definition includes full time, part time or probationary basis HAVE AN ADVERSE INTEREST. Be the party to a contract (as defined in 71 P.S (4)) other than the Commonwealth of Pennsylvania, the Commission, or a State Agency (as defined in 71 P.S (8)) or be a stockholder, partner, member, agent, representative or employee of such party IMMEDIATE FAMILY. A spouse, parent, brother, sister, or child FACILITY. Rest areas, service plazas, restaurants, fueling stations, traffic advisory systems, call boxes or other services provided by the Commission to persons using toll roads or highways operated by the Commission FINANCIAL INTEREST. Any financial interest in a legal entity engaged in business for profit which comprises more than 5% of the equity of the business or more than 5% of the assets of the economic interest in indebtedness GIFT. Anything which is received without consideration of equal or greater value. The term shall not include a political contribution otherwise reported as required by law or a commercially reasonable loan made in the ordinary course of business MEMBER. A Commissioner appointed to the Commission, including the Secretary of Transportation, and any successor entity thereto OWNERSHIP INTEREST. Owning or holding, or being deemed to hold, debt or equity securities or other ownership interest or profit interest PARTY OFFICER. A member of a National committee of a political party; a chairman, vice chairman, secretary, treasurer or counsel of a State committee or [3]

101 member of the Executive Committee of a State Committee of a political party; or a County chairman, vice chairman, counsel, secretary, or treasurer of a County committee or a City chairman, vice chairman, counsel, secretary, or treasurer of a City committee of a political party PENNSYLVANIA TURNPIKE COMMISSION. An entity formed or maintained under authority of the Act of May 21, 1937 (P.L. 774, No. 211), referred to as the Pennsylvania Turnpike Commission Act, and the Act of September 30, 1985 (P.L. 240, No. 61), known as the Turnpike Organization, Extension and Toll Road Conversion Act, or any successor entity PUBLIC OFFICIAL. Any official elected to a Federal, State or County office RECOMMEND. To praise or commend to another as being worthy or desirable; endorse SUGGEST. To offer for consideration or action; propose. IV. Conflicts of Interest and the Appearance of Conflicts of Interest: 4.1. No Member, Executive-Level Employee, or Employee shall engage in conduct that constitutes an actual or perceived conflict of interest Members, Executive-Level Employees, and Employees shall refrain from any financial or business dealings that would affect the Member s, Executive-Level Employee s, or Employee s objectivity, impartiality or independence of judgment No Member, Executive-Level Employee or other Employee shall influence, or attempt to influence, the making of or supervise or in any manner deal with any contract in which he or she has an adverse interest No Executive-Level Employee or other Employee shall have an adverse interest in any contract with the Commission No Member, Executive-Level Employee or other Employee may solicit or accept for the personal use of the Member, Executive-Level Employee, other Employee or another any discount, gift, gratuity, favor, entertainment, compensation, travel, lodging, hospitality, loan or other thing of monetary value, including inkind gift, directly or indirectly, from any person, facility, vendor, consultant or business, including from employees of that facility, vendor, consultant or business who: [4]

102 (1) Is seeking to obtain business from the Commission or with which the Commission has a contractual relationship. (2) Conducts operations or activities that are regulated by the Commission. (3) Is engaged, either as a principal or attorney, in proceedings before the Commission or in court proceedings in which the Commission is an adverse party. (4) Has interests that may be substantially affected by the performance or nonperformance of the official duty of the Member, Executive-Level Employee or other Employee Notwithstanding the preceding provision, a Member, Executive-Level Employee, or Employee may: (1) Accept something of monetary value from a spouse, parent, parent-bymarriage, sibling, child, grandchild or other family member or friend when the circumstances make it clear that the motivation for the action was a personal or family relationship rather than the position of the Member, Executive-Level Employee or other Employee.. Relevant factors in making such a determination include the history of the relationship (for example, does the friendship pre-date employment by the Commission) and whether the family member or friend pays for the gift. For purposes of this paragraph, the term friend shall not include a registered lobbyist or an employee of a registered lobbyist. (2) Accept loans from banks or other financial institutions on customary terms of finance for proper and usual activities, such as home mortgage loans. (3) Participate in widely attended gatherings free of charge when officials have been invited and are acting in furtherance of their official duties. No food or drink can be accepted without payment at market value the value of which, upon presentation of a receipt, may be submitted for reimbursement in accordance with the Commission Travel Procedures Manual No Member, Executive-Level Employee, Committee Member, or the Immediate Family of such person shall participate in any deliberations or vote of the [5]

103 Commission in which that person may have a direct or indirect pecuniary interest. 4.8 A Member shall abstain from any vote or decision which authorizes a contract in which the member has any pecuniary interest. The Member shall disclose the interest in a public meeting prior to the vote or decision. Failure to comply with this paragraph shall render the contract null and void No Member or Executive-Level Employee may solicit, request, suggest or recommend the employment, by either the Commission or a contractor with the Commission, of any individual related within the first degree of consanguinity to the Member or the spouse of the Member or Executive-Level Employee as set forth in 23 Pa.C.S. 1304(e) (relating to restrictions on issuance of license). The first degree of consanguinity encompasses a parent, sibling, aunt, uncle, grandparent, grandchild, child or first cousin At the time of Appointment and annually thereafter, each Member shall disclose the existence of all ownership interests in any Facility, Vendor, Consultant or Business with which the Commission has contracted The disclosure statement under the preceding paragraph shall be filed with the Chief Executive Officer of the Commission and shall be open to inspection by the public at the office of the Commission during normal business hours of the Commission during the tenure of the Member. V. Future Employment: 5.1. No former Member or Executive-Level Employee may receive any pecuniary benefit from a contract between the Commission and the employer of the former Member or Executive-Level Employee for a period of one year from the termination of employment or service with the Commission No former Member or Executive-Level Employee may solicit any contracts with the Commission for a period of one year from the termination of employment or service with the Commission. VI. Non-Profit Service: 6.1. No Member, Executive-Level Employee, or Employee may use the promise of business with the Commission to solicit funds for any charitable, educational, religious, health, fraternal, civic or other non-profit entity, or any political campaign or candidate. [6]

104 6.2. A Member or Executive-Level Employee may serve as an officer, employee or member of the governing body of a non-profit entity, subject to the other provisions of this policy, and may attend, make personal contributions to and plan or preside over the entity s fundraising events A Member or Executive-Level Employee may permit his or her name to appear on the letterhead used for fundraising events if the letterhead contains only the Member s or Executive-Level Employee s name and position with the non-profit entity. VII. Confidential Information: 7.1. No Member, Executive-Level Employee or other Employee shall use or disclose Confidential Information obtained in the performance of his or her duties for personal benefit or for the benefit of any person or entity other than the Commission No Member, Executive-Level Employee or other Employee shall divulge Confidential Information to any unauthorized person or release any information in advance of the time prescribed for its release, for the financial or pecuniary gain of himself/herself or others. VIII. Conviction of Crime: 8.1. A Member who, during his or her term, is convicted of a felony in any Domestic or Foreign jurisdiction shall, upon conviction, be automatically removed from the Commission and shall be ineligible to become a Member in the future. IX. Public Office and Party Affiliation: 9.1. Except for the Secretary of Transportation, no Member or Executive-Level Employee shall be a Public Official or Party Officer in the Commonwealth of Pennsylvania No Executive-Level Employee or Employee shall (a) engage in any political activity (such as campaigning, fundraising, canvassing, or pollwatching) during his or her specified working hours or which is determined by the Commissioners to conflict or interfere with the ability of the Executive-Level Employee or Employee to effectively and efficiently carry out the duties and functions of his or her position, (b) use or allow others to use Commission facilities, resources, equipment, vehicles or electronic devices for political activities, or (c) in any manner coerce any other person employed by the Commission to contribute [7]

105 time, money, or services to a political candidate or campaign. Individuals not employed by the Commission are also prohibited from using Commission facilities, resources, equipment, vehicles or electronic devices for political purposes No Executive-Level Employee or Employee shall be a candidate for nomination or election to any State or Federal Office unless he or she shall have first resigned from his or her employment with the Commission. State Office shall be deemed to include the following offices in the Commonwealth of Pennsylvania: Governor, Lieutenant Governor, Attorney General, Auditor General, State Treasurer, Senator and Representative in the General Assembly, and Judge or Justice of any Court of the Commonwealth, including Magisterial District Court and Municipal Court. Federal Office shall be deemed to include Senator and Representative in the United States Congress. 1 X. Job Performance of Employees: Each Employee shall: Perform all assigned duties in a professional manner Become familiar with the policies and regulations of the Commission applicable to his or her assignment Implement and adhere to the policies of the Commission including this Code of Conduct Strive to improve job performance so as to render service at the highest level of competence Respect the Rules and Regulations of the Commission and ensure they are administered fairly Transact public business with dignity, courtesy, honesty and integrity Bring to the attention of the Chief Compliance Officer of the Commission (or the Chief Counsel of the Commission if the matter involves the Compliance 1 The terms candidate and election as used in 9.3 are defined in the Pennsylvania Election Code, act of June 3, 1937, P.L. 1333, as amended, 25 P.S ( (a) The word candidate shall, unless the context otherwise requires, include both candidates for nomination and election.... (f) The word election shall mean any general, municipal, special or primary election, unless otherwise specified. ). [8]

106 Department) those matters pertaining to Commission business which represent activities that may be contrary to the objectives of the Commission Refrain from engaging in any activity that would reflect unfavorably on or discredit the Commission. XI. Applicability of Other Laws: In addition to the standards set forth in this Code of Conduct, the Commission and its Members and Executive-Level Employees shall comply with the following Acts: The Act of June 21, 1957 (P.L. 390, No. 212), referred to as the Right-to-Know Law The Act of July 19, 1957 (P.L. 1017, No. 451), known as the State Adverse Interest Act Except in those instances where this Code of Conduct is more restrictive, 65 Pa.C.S. Chapters 7 and 11, known as the Pennsylvania State Ethics Act (relating to open meetings, ethical standards and financial disclosure). This includes the requirement that all Members and Executive-Level Employees file an annual statement of financial interests under 65 Pa.C.S XII. Violations of Code of Conduct: Violations of this Code of Conduct shall result in appropriate disciplinary action up to and including termination Known violations of Code of Conduct (by self or others) must be reported to the Chief Compliance Officer of the Commission (or the Chief Counsel of the Commission if the violation involves the Compliance Department). XIII. Effective Date: This Code of Conduct shall be effective as of October 31, XIV. Inquiries: Any questions concerning the scope or interpretation of this Code of Conduct or whether any particular conduct is permissible hereunder should be directed to the Chief Counsel of the Commission. 2 Replaced by the Right to Know Law ( RTKL ), Act of February 14, 2008, P.L. 6, 65 P.S See Bowling v. Office of Open Records, 75 A.3d 453 (Pa. 2013). [9]

107 XV. Acknowledgement and Receipt: The Commission requires each Member, Executive-Level Employee and/or Employee to acknowledge receipt and execute an agreement to be bound by the terms and conditions of this Code of Conduct. Any person within the scope of the Code of Conduct shall be deemed bound by its terms and conditions notwithstanding any failure to execute or deliver an acknowledgement and receipt. [10]

108 ACKNOWLEDGEMENT AND RECEIPT OF CODE OF CONDUCT OF THE PENNSYLVANIA TURNPIKE COMMISSION I acknowledge receipt of the Code of Conduct and agree to abide by all policies and provisions of the Code of Conduct applicable to my position. I understand that any violation may result in disciplinary action ranging from reprimand to termination. I will not engage in any conduct which violates the Code of Conduct and will immediately disclose any circumstances which I reasonably believe may be, or may have been a violation of the Code of Conduct to the Chief Compliance Officer (or the Chief Counsel of the Commission if the violation involves the Compliance Department). Signature Print Name Date Title This Policy Letter supersedes all previous Policy Letters on this subject. [11]

109 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 3.11 APPROVAL DATE: EFFECTIVE DATE: Fraud and Abuse Tip-Box Compliance REVISED DATE: A. PURPOSE: To establish a uniform policy and define the responsibilities of the Inspector General for the review, investigation, analysis, and oversight of the Fraud and Abuse Tip-Box established by the Pennsylvania Turnpike Commission and to set guidelines and expectations for employees reporting fraud and abuse of Pennsylvania Turnpike Commission resources. B. SCOPE: This policy applies to all members of the Pennsylvania Turnpike workforce, including full-time, part-time, temporary, supplemental, interns, independent consultants, summer, and contract employees and any acts of alleged wrongdoing reported through the Fraud and Abuse Tip-Box established by the Pennsylvania Turnpike Commission. C. GENERAL POLICY: Employees, the general public, and anyone doing business with the Commission can and should report suspected wrongdoing involving fraud, abuse or irregular activity in accordance with this policy. D. DEFINITIONS: Fraud- In considering whether a situation is potentially fraudulent, there must be an intentional misreprentation where the following conditions are alleged: (1) a cause of deception; (2) an intentional misrepresentation of fact; and (3) the violator stands to gain financially from the deception and misrepresentation. Abuse:- Abuse differs from fraud in that it describes incidents and practices of an individual that are inconsistent with sound business or fiscal practices, which are considered inappropriate, but not knowingly or intentionally misrepresented in order to obtain payment or a financial benefit. Examples of fraud and abuse include, but are not limited to, the following: theft or abuse of Commission property or resources, such as supplies and equipment. excessive or unnecessary purchases made purportedly on behalf of the Commission. falsification of official documents, such as timesheets, travel vouchers, etc. contract fraud. inappropriate expenditures and embezzlement. E. PROCEDURES: [1]

110 Employee Orientation/Awareness: New Pennsylvania Turnpike employees shall be made aware of this policy by the Human Resources Department. Procedure for Reporting Fraud, Abuse or Irregular Activity: Employees reporting suspected fraud, abuse or irregular activity shall follow the following procedures: State circumstances about the incident, including estimated loss amount and frequency of occurrence. Provide the names of all individuals involved. Identify all available documentation and location (copies of supporting documentation may be enclosed or if ed-send to the address below). Provide the dates and times that the incident(s) occurred and where the incident occurred. Indentify the names and address and telephone numbers (if known) of any credible witness(es). If the incident was previously reported, identify to whom it was reported and when. Provide a password and use this password when requesting information regarding this matter. Provide your name, address, and phone number (optional). Reporting Fraud, Abuse, or Irregular Activity: Fraud or abuse can be reported in the following ways: Call the toll-free tip-line at (888) Write to the PTC Tip-Box, P.O. Box 19, Highspire, Pennsylvania Send an to tip_box@paturnpike.com The reporting party need not provide his or her name, however, be advised that your Internet address will be submitted to the Commission if is used to report alleged wrongdoing. All information will remain confidential. Employee Protection in Reporting: All employees reporting in accordance with this Policy Letter shall be afforded protection under the Act of 1986, known as the Whistleblower Law. Reports of Suspected Violations: Any employee, member of the general public, and anyone doing business with the Commission can report suspected wrongdoing involving fraud or abuse to the Inspector General to initiate a formal complaint process. Violations will be investigated by the Office of Inspector General. When appropriate, the Inspector General may, in the exercise of his or her discretion, request assistance and cooperation from other departments of the Commission. Individuals found to be in violation of this policy may be subject to disciplinary action, up to and including termination. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

111 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 4.01 APPROVAL DATE: EFFECTIVE DATE: Tuition Reimbursement Policy Human Resources REVISED DATE: A. PURPOSE: To provide educational assistance to employees who successfully complete approved courses that are relevant to the needs of the Pennsylvania Turnpike Commission (Commission) and are not available through in-service programs. B. SCOPE: This policy letter applies to all full-time, regular Commission employees that have successfully completed their probationary/introductory period and have at least six (6) months of service, except as provided in Policy Letter 4.6. C. GENERAL POLICY: The Commission may, at its sole discretion, provide reimbursement to eligible employees for approved educational courses through an accredited educational institution when it determines that doing so will provide a benefit to the Commission. Employees are required to schedule courses, during non-work hours. 1. Coursework a. For courses to be approved, they must meet the following requirements: The course is related to the employee s current duties with the Commission, or The course will develop new skills that could be applied towards an aspect of the Commission s operations. 2. Eligibility a. All full-time, regular employees who have completed six months of service are eligible for reimbursement, provided: The employee obtains approval to attend the course from their immediate supervisor, department head and the Director of Human Resources prior to attending the course; The employee is registered at an accredited educational institution (e.g., college, university or trade school); and The employee is registered at an accredited educational institution (e.g. college, university or trade school; and [1]

112 The employee is registered for a course that is a core course in a field of study that is job-related to current duties or to the operational needs of the Commission. b. The employee must achieve an acceptable passing grade to be eligible for reimbursement. Examples of an acceptable grade are: A C letter grade or higher; A 2.00 grade point average or higher on a 4.00 system; A Pass grade on a Pass/Fail grading system; or A B letter grade or higher for graduate-level courses or equivalent. c. General education courses will not be eligible for reimbursement. 3. Reimbursement a. Employees will be reimbursed for 90 percent of tuition, registration, and books for successful completion of a course from an accredited educational institution up to $5,250 annually (January 1 st December 31 st ). Transportation and any other subsequent costs or fees are not reimbursable. D. DEFINITIONS: b. An employee will not be eligible for reimbursement if they withdraw from an approved course or if the approved course is canceled. The employee is required to immediately notify the department head and Human Resources if they withdraw from an approved course or if the course is canceled. c. The employee must remain employed by the Commission for a period of one year following the end date of the course. If not, the employee must reimburse the Commission for monies received under the program. The Commission will use its discretion to determine the method to recoup the monies due. d. An employee will not receive tuition reimbursement if they terminate employment prior to completion of an approved course. Accredited Educational Institution - A process of formal recognition from an accrediting agency endorsed by the U.S. Department of Education for a school or institution attesting to the required ability and performance in an area of education, training, or practice. Full-time Regular Employee An employee that has successfully completed the probationary/introductory period and who has been assigned to a permanent position. Supplemental employees are not considered full-time, regular employees. In-Service Training - Courses, training sessions, conferences, seminars, workshops and distance learning programs that are sponsored by the PTC. [2]

113 E. PROCEDURES: 1. Approval a. Employees must complete a tuition reimbursement request form (available in the HR Forms section of the PTC Intranet) prior to attending the course. The supervisor shall review the request and make a recommendation to the department head or his/her designee for approval. The department head shall approve or disapprove the recommendation and forward the request to the Director of Human Resources for approval. b. The Director of Human Resources will approve or disapprove the request and notify the department head, supervisor, and the employee of the decision. c. Courses that fall outside the scope of work in the employee s current department must be approved for reimbursement by the Chief Executive Officer or Chief Operating Officer in addition to the standard approval procedure. d. Approval for coursework taken in a graduate-level degree program by an employee that already possesses a graduate degree in that discipline will be granted on a limited basis and will only be considered when such coursework is deemed necessary to the operations of the Commission. Requests for reimbursement for these types of courses must be accompanied by a justification of the employee's training needs and the resulting benefit to the Commission. 2. Reimbursement a. The employee must provide verification of successful completion of the course to the Director of Human Resources within 90 days of course completion. Reimbursement will not be made for requests received beyond the 90 day time limit. Acceptable forms of verification include: The grade report from the institution, or The official transcript from the institution with grade. b. Employees may request a 50 percent advance of their tuition, registration and books prior to attending courses and receive the final 50 percent of their tuition, registration and books upon successful completion of the course. c. When all the necessary documentation has been received and approved, Human Resources will forward the reimbursement request to the Finance Department for payment. d. The Finance Department will reimburse the employee directly. e. Employees that received a 50 percent advance and do not successfully complete the course, drop the course or the approved course is cancelled, will be required to reimburse the Commission either by payroll deduction (at least 10 percent of his/her pay each payroll period until fully reimbursed). If no longer employed by the Commission the lump sum is required either by direct payment, payroll deduction [3]

114 from final check, accrued leave payout deduction or from his/her SERS retirement account. The Commission reserves the right to modify at any time the Tuition Reimbursement program, including, but not limited to, terminating the program, lowering the level of reimbursement for participants or changing the requirements for eligibility based on budgetary constraints. This Policy Letter supersedes all previous Policy Letters on this subject. [4]

115 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 4.02 APPROVAL DATE: EFFECTIVE DATE: Overtime Compensation Finance and Administration REVISED DATE: A. PURPOSE: To provide guidelines for compensating non-exempt non-union employees for overtime work. B. SCOPE: This policy applies to all employees of the PTC who are are not covered by a Collective Bargaining Agreement. C. GENERAL POLICY: Non-exempt employees will be compensated on a time and one half basis for hours worked in excess of 40 in any week. Except where provided otherwise by the terms of a Collective Bargaining Agreement or Memorandum of Understanding, overtime work is defined as hours worked in excess of forty hours within a workweek. For non-exempt nonunion employees, this does not include sick, vacation, holiday or other forms of paid leave because this is not time worked. The use of overtime work shall be kept to a minimum. Department heads shall closely scrutinize, monitor and control the amount of overtime authorized for their employees. Every alternative should be considered prior to assigning staff to work overtime. Alternatives include, but are not limited to: Altering the employee s regular work schedule to accommodate projects and meetings outside of the regular work schedule without exceeding 40 hours in a week. Reassigning work to other available employees to facilitate deadlines. Hiring of temporary staff. Chiefs/Directors are authorized to approve overtime work for all eligible employees within their departments, as well as the Chief Executive Officer, Chief Operating Officer, and Directors of Operations/Projects (East and West). Other than an unanticipated emergency situation, overtime work should be approved in advance of the assignment by the Chiefs/Directors, Department Head or the designee, where practical. [1]

116 Funds allocated for overtime compensation will be reviewed and proposed as part of the budgetary review process. Chiefs/Directors, the Chief Executive Officer, Chief Operating Officer, and Directors of Operations/Projects (East and West) will be held accountable to ensure expenditures are within the allotted amounts. All union covered employees will be compensated for overtime work consistent with the provisions of the current union agreement(s). Nonexempt, nonunion employees will be compensated for overtime work at one and a half times their rate of pay in effect at the time of the overtime assignment. It is assumed that exempt employees will include as part of their regular work week additional work time necessary to meet outside of normal work schedules, to handle short term projects and to satisfy weekly work requirements. Compensatory Time Off: The Commission does not have a compensatory time off program for either exempt or nonexempt union or management employees who work more than 40 hours per week. Travel Time: Ordinary home to work travel by an employee does not count as hours worked under the FLSA. However, once an employee starts the workday, all time spent traveling during normal working hours shall be considered hours worked. Travel Outside of Regular Working Hours When there is no overnight stay involved, travel both before and after regularly scheduled working hours is compensable. However, normal commuting time shall be deducted from the travel time. Travel Which Includes an Overnight Stay When there is an overnight stay involved, travel time incurred by an employee either before or after normal working hours to a location where work is to be done or a seminar or other event is to be attended is not compensable. Duty Officer - The regular work schedule and biweekly salary of our Duty Officers is calculated based on 84 hours of work. When a Duty Officer works on a holiday, they will receive 8 hours of holiday pay in addition to their biweekly salary. Under no circumstances will a Duty Officer receive compensation for hours worked in excess of 84 in each biweekly pay period. Interchange Managers & Foremen Interchange Managers and Foremen are generally scheduled to work a forty-hour workweek. Their salary is calculated based on forty hours per week. [2]

117 Interchange Managers and Foremen occasionally work forty or more hours in a workweek that includes a paid holiday. In those situations, Interchange Managers and Foremen will be paid for hours worked to a maximum of forty. Holiday pay will be paid in addition to hours worked. Under no circumstances will Interchange Managers or Foremen be compensated for more than forty hours worked in a workweek. D. DEFINITIONS: Overtime Work- Except where provided otherwise by the terms of a Collective Bargaining Agreement or Memorandum of Understanding, overtime work is defined as hours worked in excess of forty hours within a work week. The workweek begins Fr iday morning at 12:01 a.m. and ends at midnight of the following Thursday. Overtime Compensation- Pay at the rate of one and one half times the rate of pay in effect when the overtime is worked. Union Covered Employee- An employee whose hours worked, including overtime hours, are governed by a provision of a collective bargaining agreement or memorandum of understanding. Nonexempt Employees- An employee covered by the Fair Labor Standards Act (FLSA) and all the overtime provisions of the Act. Exempt Employees- An employee covered by the Fair Labor Standards Act (FLSA) but exempt from the overtime provisions under the Act by virtue of executive, administrative, professional or computerprofessional exemptions. Department Heads- An employee who oversees a department or work unit. Management Employees- An employee not covered by a collective bargaining agreement or memorandum of understanding. E. PROCEDURES: All requests to authorize overtime should be presented to the respective Chief/Director sufficiently in advance of the assignment to provide the Chief/Director with ample time to review and respond appropriately. When emergencies arise and advance approval is not received, the Chief/Director should be informed of the overtime worked and the justification for the overtime. Each Chief/Director should review overtime worked and overtime expenditures to ensure consistency and the availability of funding. Time submitted for overtime should be recorded in quarter hour increments. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

118 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 4.03 APPROVAL DATE: EFFECTIVE DATE: Restitution of Overpayment Human Resources REVISED DATE: A. PURPOSE: To establish a policy concerning restitution of overpayment to employees of the Pennsylvania Turnpike Commission (PTC). B. SCOPE: This policy applies to all active employees of the PTC. C. GENERAL POLICY: Active employees who have received overpayment in salary or wages, for any reason, including administrative error or oversight, are required to make restitution of the overpayment amount to the PTC. Payroll deduction shall be the sole method to recoup such overpayment for active employees. Inactive employee overpayments will be recouped through the State Employees Retirement System (SERS). If the overpayment is greater than ten percent (10%) of the employee's bi-weekly gross base salary, the employee may be able to make restitution to the PTC from his/her paycheck in payments. Payments shall be equal to ten percent (10%) of the employee s bi-weekly gross base salary until restitution has been paid in full. D. DEFINITIONS: Bi-Weekly Gross Base Salary - Wage calculation based on the employee's regular hourly rate of pay multiplied by eighty (80) hours Overpayment - Payments to, or on behalf of, an employee in excess of that which the employee has earned or is entitled to receive. E. PROCEDURES: Employees shall immediately advise their supervisor of any overpayment realized. When this overpayment cannot be corrected by a supervisory time sheet correction, the supervisor shall then immediately notify the Human Resources Department. [1]

119 If the overpayment is realized by the Human Resources Department, they shall immediately advise the employee and/or the employee s supervisor.. Supervisor(s) shall immediately advise their employees of any overpayment. If a time recording error caused an overpayment, restitution will automatically be made with the next available pay date(s) once the time record is corrected. If the next available pay has not yet been processed and the overpayment amount is greater than ten percent (10%) of the employee s bi-weekly gross base salary, the employee may request to make payments equal to ten percent (10%) of his/her bi-weekly gross base salary until restitution has been paid in full. Supervisors shall ensure the Human Resources Department is aware of the request. If a pay rate error (or other error unrelated to time recording) caused an overpayment and the overpayment is greater than ten percent (10%) of the employee s bi-weekly gross base salary, the Human Resources Department will provide the employee the option of 1) making restitution in full with the next available pay date or 2) making payments equal to ten percent (10%) of his/her biweekly gross base salary until restitution has been paid in full. If an employee does not select an option, option 2 will be utilized. The Human Resources Department shall resolve any issues and validate that overpayments are properly deducted. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

120 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 4.04 APPROVAL DATE: EFFECTIVE DATE: Professional License, Registration or Certifications and Memberships in Associations, Organizations or Societies Human Resources REVISED DATE: A. PURPOSE: To establish a policy and procedure for the reimbursement or payment of professional credentials and professional association membership fees and dues to full-time management employees. B. SCOPE: This policy letter applies to all full-time management employees who have successfully completed their probationary/introductory period and who hold any professional credential issued by a State agency or recognized professional association and/or who belong or seek to belong to a recognized professional association. C. GENERAL POLICY: To pay for employees' professional credential fees as defined herein and to encourage employees to participate in professional associations in which membership clearly promotes the Commission's mission, goals and objectives and is a clear benefit to the Commission's service or operations or its employees' professional growth and development. D. DEFINITIONS: Professional Credential - Any license, certificate, registration, or similar document issued by a national or state agency or professional association that an employee is statutorily required to possess and maintain in order to practice the profession for which he is employed or that the employee's Department Head verifies adds value to the Commission. Professional Association - Any association, organization, society or other group that adds to an employee's professional growth and development, adds value to the Commission's operations, and provides knowledge and benefits that can be shared throughout the Commission. E. PROCEDURES: A. Reimbursement for Professional Credentials: 1. The Commission shall pay or reimburse an employee for the employee's professional credential when the following criteria has been met: [1]

121 a. The professional credential is issued by a national or state agency or widely recognized professional association; and b. The professional credential is either required by the employee's position or directly related to the employee's duties or used in the course of the position. Payment or reimbursement will be made in the discretion of the Department Head and the approval of the CEO or his designee. 2. To seek payment, the employee shall complete a PTC Subscription/Book/Dues Payment Request Form and attach to the form an invoice from the issuing entity showing the amount due. To seek reimbursement, the employee shall complete a Travel Expense Voucher (TEV) and attach a receipt showing the amount paid and to whom it was paid. The payment or reimbursement will be charged to the employee's department through GL Account Number The Subscription/Book/Dues Payment Request Form must identify the professional credential that is being issued or renewed. 3. An employee will not be eligible for payment or reimbursement if his/her professional credential is suspended, revoked or inactive. 4. Because the professional credential is issued in the name of the employee and not the Commission, if an employee's professional credential becomes suspended, revoked or inactive, or if the employee leaves Commission employment during the credential period, the employee may be required to reimburse the Commission on a pro rata basis the cost of the credential. The Commission shall use its discretion to determine the method to recoup monies due. B. Payment of Individual Professional Association Membership Fees: 1. The Commission may pay the cost of membership in a professional association when the Department Head, in his/her discretion and with the approval of the CEO, determines the membership clearly promotes the Commission's mission, goals and objectives and is a clear benefit to the Commission's service or operations or its employees' professional growth and development. 2. Payment for membership in an approved professional association for the Commission or an employee should be made by the Commission directly to the association and not as a reimbursement to the employee. 3. To seek payment, the employee shall complete a PTC Subscription/Book/Dues Payment Request Form and attach to the form an invoice from the issuing entity showing the amount due and to whom the check is payable. 4. If membership is established in the name of the employee and the employee leaves Commission employment during the membership period, the employee may be required to reimburse the Commission on a pro rata basis the cost of the membership if the employee or Commission is unable to transfer the membership to the Commission or another employee. The Commission shall use its discretion to determine the method to recoup monies due. [2]

122 5. Memberships should be jointly used, where possible, to preclude proliferation and duplication within the Commission and should not be acquired in the name of an employee unless the benefit therefrom to the Commission is significant, which includes but is not limited to the receipt of highly valuable information, continuing educational credits, publications, documents and related materials. 6. Respective Department Heads shall evaluate each membership annually for active employee participation, benefits received and continuance. C. Limitations: 1. Employees will not be reimbursed for any late fees or penalties due to untimely renewal. Late fees and penalties are the sole responsibility of the employee. 2. Employees will not be reimbursed for any portion of any dues or fees that are designated for an association's lobbying efforts. 3. No payments will be approved for any dues or fees for any association that discriminates on the basis of race, religion, gender, national origin, age, disability, or sexual orientation. 4. Employees may request reimbursement for up to three professional credentials or payment for up to two professional association memberships. Reimbursements and payments will be made on a sliding scale. An employee will be reimbursed one hundred percent of the cost of the first credential, fifty percent of the cost of the second credential and twenty-five percent of the cost of the third credential. The Commission will pay 100 percent of the cost of the first approved professional association membership and fifty percent of the cost of the second approved professional association membership. Required credentials will take priority over other credentials and memberships. The priority of reimbursement and payment will be in the sole discretion of the Department Head. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

123 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 4.05 APPROVAL DATE: EFFECTIVE DATE: Compensatory Time for Exempt Employees Human Resources REVISED DATE: A. PURPOSE: To establish guidelines and procedures whereby employees classified as exempt under the Fair Labor Standards Act may earn compensatory leave time as a result of work performed during emergencies or special projects that are time sensitive and essential to the operations of the Pennsylvania Turnpike Commission (PTC). B. SCOPE: This Policy applies to all PTC management employees who are classified as exempt and therefore not covered under the overtime provisions of the Fair Labor Standards Act. C. GENERAL POLICY: Employees are eligible to begin earning compensatory time after working fifty (50) hours in a payroll week for employees not on an AWS schedule or (100) hours in a pay period for employees working an AWS schedule. Compensatory time will be earned on an hour for hour basis. Any leave taken for vacation, sick, personal, holiday and/or any other form of paid or unpaid leave in a payroll week will not count towards the 50 hours or 100 hours in a pay period for employees on an AWS schedule. An employee may earn up to sixty (60) hours of compensatory time annually between July 1st and June 30th. Employees must use their earned compensatory leave prior to September 30th of the same year or it will be forfeited. Compensatory time may be taken in any increment and may be used in coordination with other types of leave. The PTC will not pay for unused compensatory time upon termination, resignation, or retirement. Whenever possible an employee s schedule should be adjusted during the same pay period for special projects or emergencies to minimize or eliminate the necessity of compensatory time. Schedule modifications are not intended to and should not be used to create a permanent flextime. [1]

124 D. DEFINITIONS: Emergencies are any sudden occurrences or occasions requiring an immediate response to insure the safety of the turnpike and turnpike patrons where there exists a threat to public health, welfare or safety or circumstances outside the Commission s control create an urgent need which does not permit a delay in response or action. Management Employees are employees not covered under any collective bargaining agreement or memorandum of understanding. Payroll week includes any shift that ends between 12:00 a.m. Friday and 11:59 p.m. the following Thursday. Special Projects are projects of significant importance to the PTC that because of time or other constraints will require employees to work extended hours during the week and/or on weekends. E. PROCEDURES: All compensatory time must be pre-approved by the CEO or the COO. Department heads should submit all requests in writing. The request should be in advance or as soon as practical when the request is as a result of an emergency. Approval for compensatory time should only be for emergencies and special projects and not used on an ongoing basis. Once approved by the CEO or COO the request and approval should be submitted to human resources for processing. Use of compensatory leave must be approved by the department head. This policy letter is intended to provide guidance and appropriate controls with respect to compensatory time for exempt employees. However, the PTC recognizes that specific, unforeseen or unique circumstances may exist or occur that require exceptions be made with respect to strict application of, or adherence to, this policy. Such exceptions may be made at the discretion of the PTC s CEO or COO. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

125 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 4.06 APPROVAL DATE: EFFECTIVE DATE: All Electronic Tolling Conversion Tuition Reimbursement Policy Human Resources REVISED DATE: A. PURPOSE: The Pennsylvania Turnpike Commission (Commission) is converting to a cashless tolling system, which will require operational changes resulting in job displacements. This transitional policy is designed to extend additional allowances to those employees holding a position defined as impacted classification. To provide educational assistance to impacted classification employees who successfully complete approved courses that are relevant to the needs of the Pennsylvania Turnpike Commission (Commission), a Commonwealth agency or a private sector employer and are not available through in-service programs. B. SCOPE: This policy letter applies to Commission employees hired on or before 12/31/2016, and are designated as impacted classification employees,, who have successfully completed their probationary/introductory period and have at least six (6) months of service with the Commission. Any new impacted classification employee hired after 12/31/2016 will not be eligible for tuition reimbursement under this policy. All full-time, regular employees that are not designated as impacted classification employees are not eligible to receive tuition reimbursement under this policy. C. GENERAL POLICY: The Commission may, at its sole discretion, provide reimbursement to eligible employees for approved educational courses through an accredited educational institution. Employees are required to schedule courses, during non-work hours. 1. Eligibility a. Impacted classification employees hired on or before 12/31/16 and who successfully complete their probationary/introductory period and have at least six months of Commission service are eligible for reimbursement, provided: [1]

126 The employee obtains approval to attend the course from their immediate supervisor, department head and the Director of Human Resources prior to attending the course; The employee is registered at an accredited educational institution (e.g., college, university or trade school); and The employee is registered for a course that is a core course in a field of study that is job-related to the operational needs of the Commission, another Commonwealth agency or private sector employer. b. The employee must achieve an acceptable passing grade to be eligible for reimbursement. Examples of an acceptable grade are: A C letter grade or higher; A 2.00 grade point average or higher on a 4.00 system; A Pass grade on a Pass/Fail grading system; or A B letter grade or higher for graduate-level courses or equivalent. a. Reimbursement D. DEFINITIONS: c. Education courses that increase general increase general competency skills (arithmetic, reading, writing, basic computing) will be eligible for reimbursement. a. Employees will be reimbursed for 100 percent of tuition, registration and books for successful completion of a course from an accredited educational institution up to $5,250 annually (January 1st - December 31st). Transportation and any other subsequent costs or fees are not reimbursable. b. Employees may request a 50 percent advance of their tuition, registration and books prior to attending courses and receive the final 50 percent of their tuition, registration and books upon successful completion of the course. c. An employee will not be eligible for reimbursement if they withdraw from an approved course or if the approved course is canceled. The employee is required to immediately notify the department head and Human Resources if they withdraw from an approved course or if the course is canceled. d. An employee will not receive tuition reimbursement if they terminate employment prior to completion of an approved course. Accredited Educational Institution - A process of formal recognition from an accrediting agency endorsed by the U.S. Department of Education for a school or institution attesting to the required ability and performance in an area of education, training, or practice. [2]

127 Impacted Classification Employee All full-time regular employees assigned to the Fare Collection Department, including Supplemental Toll Collectors or Compliance Department Ticket Systems Audit employees hired on or before 12/31/2016. In-Service Training - Courses, training sessions, conferences, seminars, workshops and distance learning programs that are sponsored by the PTC. E. PROCEDURES: 1. Approval a. Employees must complete a tuition reimbursement request form (available in the HR Forms section of the PTC Intranet) prior to attending the course. The supervisor shall review the request and make a recommendation to the department head or his/her designee for approval. The department head shall approve or disapprove the recommendation and forward the request to the Director of Human Resources for approval. b. The Director of Human Resources will approve or disapprove the request and notify the department head, supervisor, and the employee of the decision. c. Approval for coursework taken in a graduate-level degree program by an employee that already possesses a graduate degree in that discipline will be granted on a limited basis and will only be considered when such coursework is deemed necessary to the operations of the Commission. Requests for reimbursement for these types of courses must be accompanied by a justification of the employee's training needs and the resulting benefit to the Commission. 2. Reimbursement a. The employee must provide verification of successful completion of the course to the Director of Human Resources within 90 days of course completion. Reimbursement will not be made for requests received beyond the 90 day time limit. Acceptable forms of verification include: The grade report from the institution; or The official transcript from the institution with grade. b. When all the necessary documentation has been received and approved, Human Resources will forward the reimbursement request to the Finance Department for payment. c. The Finance Department will reimburse the employee directly. Employees that received a 50 percent advance and do not successfully complete the course, drop the course or the approved course is cancelled will be required to reimburse the Commission either by payroll deduction (at least 10 percent of his/her pay each payroll period until fully reimbursed). If no longer employed by the Commission, the lump sum is [3]

128 required either by direct payment, payroll deduction from final check, accrued leave payout deduction or from his/her SERS retirement account. The Commission reserves the right to modify at any time the Tuition Reimbursement program, including, but not limited to, terminating the program, lowering the level of reimbursement for participants or changing the requirements for eligibility based on budgetary constraints. This Policy Letter supersedes all previous Policy Letters on this subject. [4]

129 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 5.01 APPROVAL DATE: EFFECTIVE DATE: Employee Accident Review and Disciplinary Program Traffic Engineering and Operations REVISED DATE: A. PURPOSE: This policy letter governs the review and disciplinary processes for all employees involved in accidents while operating Commission-owned vehicles and equipment. B. SCOPE: All Commission employees are covered by this policy and are responsible for knowing its contents and following its terms. The Accident Review Board (for Union employees excluding Local 30 Supervisory) and the Accident Review Committee (for Management and Local 30 Supervisory) have the authority to review all accidents involving the operation of Commission equipment for purposes of assessing training and practices. Discipline for accidents will be determined by the Disciplinary Board (for Union employees including Local 30 Supervisory) and the Disciplinary Review Committee (for Management level employees). C. GENERAL POLICY: The Pennsylvania Turnpike Commission s Policy Letter 6.4 (PTC Vehicle Policy) and Driver s Manual encompass the Commission s rules concerning the operation, care, and maintenance of vehicles assigned to employees. Any accident involving Commission personnel, vehicles, or equipment resulting in personal injury or property damage shall be reported immediately as directed by the procedures of Traffic Engineering and Operations Department. Violation of this policy, the accident reporting procedures or the Driver s Manual may result in appropriate disciplinary action, up to and including, termination. D. DEFINITIONS: Applicable Laws Pennsylvania Vehicle Code, Title 75, as amended. [1]

130 E. PROCEDURES: The Traffic Engineering and Operations Department will develop, maintain, and revise, as necessary, the procedures for reviewing accidents to Commission-owned vehicles and equipment. 1. Accident Review Board (Bargaining Unit Employees) will consist of the following: Chairman Director of Traffic Engineering and Operations or Designee Vice Chairman/Secretary Director of Human Resources/Labor Relations or Designee Member Director of Maintenance or Designee Member Director who supervises the individual Member Manager of Customer and Employee Safety and appropriate staff Member Two Union Representatives/Maintenance 1 (Local 77 and 250) Meetings of the Accident Review Board will be held on a monthly basis. Prior to each meeting, the Traffic Engineering and Operations Department shall reproduce and summarize all material received for consideration by the Accident Review Board. To provide review time, copies of the material will be distributed to the Equipment Operations Manager and Director of Human Resources in advance of the meeting. The Accident Review Board will determine if the incident should be forwarded to the Disciplinary Review Board for possible discipline. 2. Accident Review Committee (Non-Bargaining Unit Employees) will consist of the following: Chairman Member Member Member Member Director of Traffic Engineering and Operations or Designee Director of Human Resources/Labor Relations or Designee Director of Maintenance or Designee Director who supervises the individual Manager of Customer and Employee Safety and appropriate staff Meetings of the Accident Review Committee will be held on a monthly basis. Prior to each meeting, the Traffic Engineering and Operations Department shall reproduce and summarize all material received for consideration by the Accident Review Committee. To provide review time, copies of the material will be distributed to the Equipment Operations Manager and Director of Human Resources in advance of the meeting. The Accident Review Committee will determine if the incident should be forwarded to the Disciplinary Review Committee for possible discipline. 3. Disciplinary Board (Bargaining Unit Employees) will consist of the following: Chairman Chief Executive Officer or Designee 1 To review only those accidents involving bargaining unit employees [2]

131 Member Member Member Member Director of Human Resources/Labor Relations or Designee Director of Traffic Engineering and Operations or Designee Manager of Customer and Employee Safety and appropriate staff Director who supervises individual may attend and vote on subordinate disposition if he/she desires. The Director of Traffic Engineering and Operations (or a designee) will present these cases, and the Disciplinary Board will impose disciplinary action in accordance with the provisions set forth in the collective bargaining agreements currently in effect. The Disciplinary Board may elect not to impose disciplinary action based on the following mitigating circumstances: Any employee who has not been involved in a vehicle or equipment accident within the prior five (5) years. Any employee who has had an accident that does not involve physical damage exceeding a predetermined amount. Appropriate action will be taken pertaining to this situation in accordance with the current Labor Union Agreement. 4. Disciplinary Review Committee (Non-Bargaining Unit Employees) will consist of the following: Chairman Member Member Member Member Member Chief Executive Officer or Designee Director of Human Resources/Labor Relations or Designee Director of Traffic Engineering and Operations or Designee Chief Counsel or Designee Director or Designee who supervises individual involved in accident Manager of Customer and Employee Safety and appropriate staff Meetings of the Disciplinary Review Committee will be established by the Chairman. The Director of Traffic Engineering and Operations will present the cases, and the Disciplinary Review Committee will impose disciplinary action as considered necessary. The Disciplinary Review Committee may elect not to impose disciplinary action based on the following mitigating circumstances: Any employee who has not been involved in a vehicle or equipment accident within the prior five (5) years. Any employee who has had an accident that does not involve physical damage exceeding a predetermined amount. 5. Appeal Process Disciplinary Board Appeals from the Disciplinary Board will proceed according to the grievance procedure in the applicable union agreement. [3]

132 Disciplinary Review Committee Employees affected by decisions of the Disciplinary Review Committee may file a written appeal to the Committee provided they can produce additional evidence that would result in a reversal of the discipline issued. Such appeal must be presented to the Committee within ten (10) work days of the issuance of discipline. 6. Record Keeping Appropriate records must be maintained by the Department of Human Resources; the Traffic Engineering and Operations Department; Risk Management and other departments supervising employees. This Policy Letter supersedes all previous Policy Letters on this subject. [4]

133 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 5.02 APPROVAL DATE: EFFECTIVE DATE: Emergency Preparedness, Civil Defense Traffic Engineering and Operations REVISED DATE: A. PURPOSE: The State Council of Civil Defense has prepared an Executive Order defining general protection measures applicable to all Commonwealth agencies; which includes various supplements applicable to specific agencies, specifically identifying emergency responsibilities assignments. B. SCOPE: C. GENERAL POLICY: Responsibilities assigned to the Pennsylvania Turnpike Commission as identified in applicable supplement (quoted from the draft supplement): Emergency Operational Activities In addition to performance of its normal and legally authorized functions on an emergency basis and as dictated by possible existing exigencies, the department or agency shall be responsible for: Emergency collection and centralized reporting, to the State Council of Civil Defense, of information and data concerning damage to and disruption of agency installations, facilities and services.* Emergency supply, to the State Council of Civil Defense as requested, of necessary assistance in emergency communications, particularly to points on and in the immediate vicinity of the Turnpike. Emergency assistance, as requested by the State Council of Civil Defense, in emergency transport of personnel and materials to points on or in the immediate vicinity of the Turnpike.* Emergency arrangements, as requested and deemed appropriate, for toll-free travel of emergency vehicles on the Turnpike. [1]

134 Emergency utilization, as deemed necessary or appropriate, of Commission facilities, including those under lease, for the emergency care of people using the Turnpike for travel. *See responsibilities matrix for other agencies so charged. D. DEFINITIONS: E. PROCEDURES: The Turnpike Operations Center (TOC) will be the central point of contact with the State Council of Civil Defense. All actions defined in paragraph two above will be controlled and reported by the TOC. All applicable departments will establish standby internal procedures to implement designated responsibilities; to be properly coordinated with, and reported to, the Turnpike Operations Center, during progress of an emergency situation. The Turnpike Operations Center will establish, and implement as necessary, appropriate procedures for complete liaison and coordination with Civil Defense as dictated by the emergency situation at hand. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

135 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 5.03 APPROVAL DATE: EFFECTIVE DATE: Access Control Policy Facilities and Energy Management Operations; Traffic Engineering and Operations REVISED DATE: A. PURPOSE: To establish a policy to manage access at the Pennsylvania Turnpike Commission (PTC). Managed access will provide a safer work environment and contribute to the protection of PTC assets. B. SCOPE: This policy applies to all PTC employees including full-time, temporary, supplemental, and summer, as well as contractors, subcontractors, consultants, subconsultants, concessionaires, authorized service providers, emergency response companies, and government agencies and entities. C. GENERAL POLICY: Access at PTC facilities, gates, and other access points must be managed at all times, including access to sensitive or restricted areas within PTC facilities. Access is managed using security controls such as card-operated locks and mechanical locking mechanisms. In order to gain access at PTC facilities, gates, and other access points, authorized personnel must use their assigned ID access card, key, or other security control. Authorized personnel are required to display their ID access cards at all times. Visitors - All visitors are required to sign in upon arrival and sign out upon departure from a PTC facility. Upon signing in, the visitor will be issued a visitor ID badge, which must be worn during the entire visit at the PTC facility. Visitors must remain in the reception area until they are accepted by an employee from the department related to their visit. The accepting employee must escort the visitor or arrange for an escort during their visit and ensure that the visitor signs out at the end of their visit. Anyone without a valid ID access card programmed for door access must follow established PTC visitor procedures. [1]

136 D. DEFINITIONS: Active Employee Any PTC employee in compensable status. The term does not include PTC retirees or employees on S&A, Workers Compensation, non-intermittent FMLA, Union Leave or Personal Leave. Authorized Personnel Active PTC employees and contractors, subcontractors, consultants, subconsultants, concessionaires, authorized service providers, emergency response companies, and government agencies and entities that have been provided with ID access cards or other security control devices programmed for access at doors or other access points. Consultant An individual or an individual employed by a firm, partnership, corporation, or joint venture awarded a contract by the PTC. The provisions of this policy are binding upon each consultant and subconsultant. Contractor An individual or an individual employed by a firm, partnership, corporation, or joint venture awarded a contract by the PTC. The provisions of this policy are binding upon each contractor and subcontractor. FEMO Department The PTC Facilities and Energy Management Operations Department. Gate or other Access Point A moveable structure or similar barrier that controls non-tolled entry and/or exit passage at a PTC roadway and/or building facility. Identification (ID) Access Card: 1. An official employee badge issued by the PTC that displays an employee's photograph, name, and identification number programmed to permit access through use of a card reader. 2. An official Non-Revenue card or Function card issued by the PTC that displays the company s name (and/or employee s name) and identification number programmed to permit access through use of a card reader. PTC Facility One or more buildings or structures related by function and location to the PTC, which include maintenance, fare collection, administrative facilities, tunnels, and tower sites. Security Control Devices include but are not limited to: 1. Identification (ID) access cards programmed for access at doors or other access points 2. Keys that operate cylinders in mechanical locks 3. Wireless devices that rely on a unique credential being presented to a reader Visitor - Any individuals who are not authorized personnel. E. PROCEDURES: Identification (ID) Access Cards [2]

137 All active employees will be issued ID access cards for identification and access control. For new or replacement cards, employees must submit an Employee ID Card Request/Return Form to the mailbox for Card\Key Access and Repairs. ID access cards for employees can also serve as nonrevenue cards. See Policy Letter 7.14 Non-Revenue Cards for Employees for additional information. Authorized personnel will be assigned ID access cards and/or other security control devices as needed. ID access cards for authorized personnel can also serve as non-revenue cards. See Policy Letter 7.13 Non-Revenue Cards for Individuals Who are Not Turnpike Employees for additional information. FEMO will assign to an individual s security control devices the access privileges that are needed in their current PTC position. Additional access privileges will require approval in writing by the employee s department head, and the managing director of the facility and/or affected department where applicable ID access cards must be worn visibly at all times while at a PTC facility. Security control devices must never be loaned, transferred, given to others, misused, duplicated, modified, or altered. For personnel other than active employees and Pennsylvania State Police, security control devices must be assigned an expiration date. Lost or stolen security control devices must be reported to the Facilities Access Coordinator within forty-eight (48) hours of discovery. Individuals who are assigned keys or other security control devices to access PTC facilities or open access gates are responsible for these items. See Policy Letter Procedure for Management of Pennsylvania Turnpike Keys - for additional information. Any unattended open access gate must be immediately reported to the Traffic Operations Center upon discovery. Any person found to have left a gate open may be subject to disciplinary action. Key Requests A key access request form must be completed, approved by the employee s supervisor and department head, and submitted to the Facilities Security Supervisor or his designee for approval and processing via the mailbox for Card\Key Access and Repairs. Key Requests for areas managed by other units will require the additional approval of the responsible department s department head and/or the managing director of the facility. Termination of Employment Immediately upon termination, resignation, or retirement, the affected employee s supervisor is responsible for packaging all ID access cards, keys, and other security control devices that were issued to the employee and forwarding them to the Facilities Access Coordinator. The employee must complete and submit a Key Return Form and/or an Employee ID Card Request/Return Form along with the items being returned. If the ID access card or other security control device is not [3]

138 immediately available, the Facilities Access Coordinator must still be notified immediately by the employee s supervisor, via the mailbox for Card\Key Access and Repairs, in order to disable the functionality of the ID access card or other security control device. Employee Transfer -- Upon transfer, the affected employee s supervisor is responsible for packaging all keys and other security control devices that were issued to the employee and are no longer needed and forwarding them to the Facilities Access Coordinator. The employee must complete and submit a Key Return Form and/or an Employee ID Card Request/Return Form along with the items being returned. If the functionality of an ID access card or other security control device must be disabled or revised, the employee s supervisor must notify the Facilities Access Coordinator at least one week prior to the transfer by submitting an Access Change/Issues Form to the mailbox for Card\Key Access and Repairs. Audits Reviews of key and other security-control assignments and access privileges are to be performed at least every three years. Reviews will typically be performed or coordinated by FEMO and the Compliance Department. Managers and supervisors are also responsible for reviewing key and other security control device assignments and access privileges for their staff. PTC Facility Security Risk Assessments Assessments will be performed as needed by FEMO, Operations, Safety, and Incident Response, and Information Technology in conjunction with the Compliance Department and the Pennsylvania State Police. Alarms and Notifications The PTC electronic access control system will be configured to trigger a nonaudible alarm when a controlled access point is found to be unsecured for a specified period of time. Emergency Access In the event of an emergency, e.g. power outage, card reader malfunction, etc., access to the facility must be approved by the building manager, the managing director of the facility, or the employee s department head. Violations Violations will be investigated at the discretion of the FEMO, Compliance, and Legal Departments. Violations will be referred to the Compliance or Legal Departments to initiate the formal review process. Individuals found to be in violation of this policy may be subject to disciplinary action, up to and including immediate termination. This Policy Letter supersedes all previous Policy Letters on this subject. [4]

139 POLICY POLICY SUBJECT: Turnpike Safety Responsibility PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: Traffic Engineering and Operations NUMBER: 5.04 APPROVAL DATE: EFFECTIVE DATE: REVISED DATE: A. PURPOSE: This represents a reaffirmation of responsibility for each employee of the Pennsylvania Turnpike Commission, particularly those who travel the Turnpike either in their own vehicles or in assigned Turnpike vehicles the procedure for reporting any vehicle they observe operating in a hazardous or reckless manner. B. SCOPE: This policy applies to all employees of the Pennsylvania Turnpike Commission. C. GENERAL POLICY: Any employee of the Pennsylvania Turnpike Commission operating a radio-equipped vehicle, while on the Turnpike, who observes any vehicle operating in a hazardous manner, shall immediately furnish the following information to the Operations Center: milepost, direction of travel, make of vehicle and color, registration number, action of vehicle (reckless driving, high speed, etc.). This service has been considered Turnpike policy, and this simply reaffirms to us that it is part of Turnpike safety responsibilities. D. DEFINITIONS: Reporting a vehicle operating in a hazardous manner is the only action that will be required. Pursuit of any vehicle will not be made. E. PROCEDURES: For those traveling the Turnpike in vehicles not equipped with a Turnpike radio, contact should be made with the Operations Center via cell phone (*11), at the nearest Turnpike maintenance building, or at any toll plaza where a toll-free telephone is available. This Policy Letter supersedes all previous Policy Letters on this subject. [1]

140 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 5.05 APPROVAL DATE: EFFECTIVE DATE: Workplace Safety and Health Traffic Engineering and Operations REVISED DATE: A. PURPOSE: The purpose of this Policy is to outline the procedures to be followed to promote the safety and health of employees of the Pennsylvania Turnpike Commission (PTC). The Customer and Employee Safety Unit within the Traffic Engineering and Operations Department (Safety Unit) is charged with the responsibility to establish a framework of programs that foster a culture of maintaining a safe and healthy working environment, which results in a decrease of workplace injuries. This Policy provides general guidance to all employees to address program requirements of a successful workplace safety and health program such that: Safe working practices are incorporated into all work operations; All employees are required to follow safe work practices; Safety procedures are developed and implemented in a consistent manner and in compliance with all Commission policies, procedures and directives and with all other applicable laws including, but not limited to, those regarding the Accident and Illness Prevention Program (AIPP); Safety training is provided to all employees; Reports of unsafe or unhealthy conditions or work practices will be promptly addressed; and An annual review of all policies and procedures will be conducted to assess performance and recommend improvements. B. SCOPE: This Policy applies to all PTC employees. C. GENERAL POLICY: The PTC is committed to providing a safe and healthy work environment and improving productivity through accident and injury prevention programs. All employees are expected to share in the commitment to safety and health. The prime responsibility for the safety and health of our employees rests with all employees, including all levels of management. Managers shall promote an effective and efficient safety and health program structured to eliminate and/or [1]

141 reduce injuries to employees as well as reduce the loss of materials and equipment. Employees shall be responsible to: Know and adhere to established safety procedures; Properly utilize and maintain all Commission equipment provided and/or required personal protective equipment; Report all unsafe acts or conditions to a supervisor; and Participate in all required safety training and education. This policy is to promote a workplace free from recognizable and correctable hazards. In addition to complying with applicable Federal, State and local laws, the PTC must also meet the requirements of the Accident and Illness Prevention Program (AIPP). The PTC seeks to promote a culture of safety which will result in a safer work environment and reduce the losses associated with workplace injuries. D. DEFINITIONS: Accident and Illness Prevention Program (AIPP) - The program elements and protocols required of a Workplace Safety and Health Program, as set forth by the Workers Compensation Act, Article X and 34 PA Code Chapter 129. Applicable Federal, State, and Local Laws Any act of Congress, State statute, and/or any local ordinances that apply to the safety and welfare of an employee of the PTC. Employee - Any person who receives compensation from the PTC on an hourly, daily or annual wage basis. This definition includes full time, part time or probationary basis. Employee Safety and Health Program Plan of action designed to create a safe workplace and reduce accidents and occupational diseases as defined and/or revised by the Safety Unit. E. PROCEDURES: The Safety Unit shall provide a framework for PTC workplace safety and health programs that will result in a safer workplace environment and contribute to a reduction of employee injuries, as well as a decrease in the loss of PTC materials and equipment. The Safety Unit shall work with each PTC Department to develop, implement, and maintain a compliant and effective Employee Safety and Health Program. The Safety Unit is responsible for the development and maintenance of the employee safety and health programs and the manuals generated in accordance with those programs. The Safety Unit is also responsible for ensuring compliance with all Federal, State and local laws, including, but not limited to, the requirements of the AIPP program. The Safety Unit shall evaluate the effectiveness of the Employee Safety and Health Program at least annually to ensure compliance, identify opportunities for improvements, and update procedures as necessary. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

142 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 5.06 APPROVAL DATE: EFFECTIVE DATE: U-Turn on the Pennsylvania Turnpike Traffic Engineering and Operations REVISED DATE: A. PURPOSE: This policy letter governs the making of a U-Turn on the Pennsylvania Turnpike. B. SCOPE: This policy applies to the making of U-Turns on the system and at all Interchanges/Toll Plazas. C. GENERAL POLICY: The making of a U-Turn on the Pennsylvania Turnpike is prohibited except for authorized and emergency vehicles, which may make the U-Turn at a designated area. D. DEFINITIONS: Authorized Personnel: Any Pennsylvania Turnpike Commission Employee. Authorized Vehicle: Pa. Code Title 67, Section Authorized Vehicles. Designated Area: Median/Wide Area, Service Plaza, Maintenance Shed, Access Gates, Toll Plazas, and Interchanges. Emergency: An unforeseen combination of circumstances or the resulting state that calls for immediate action. Emergency Authorization: Should the request be emergency in nature, any Authorized Personnel may authorize the U-Turn and then notify the Interchange Manager with the reason for authorizing the U- Turn. Interchange/Toll Plaza personnel shall assist the driver in making the U-Turn in a safe manner. Non-Emergency Authorization: If a U-Turn situation/request occurs at an Interchange/Toll Plaza, the Toll Collector will notify the Interchange Manager on duty. If no Interchange Manager is on duty at the I System U-turns: The Pennsylvania State Police (PSP) or authorized Pennsylvania Turnpike Commission (PTC) personnel may authorize the making of a U-Turn to the drivers of non-authorized vehicles only [1]

143 when necessary to comply with Commission rules and regulations or in an emergency. A driver of a non-authorized motor vehicle may reverse direction of travel only by passing through an Interchange/Toll Plaza and paying a fare. E. PROCEDURES: Authorized and Emergency vehicles making U-Turns at wide area median locations must display visual warning devices while making the maneuver. U-Turns at such locations shall only be made when necessary and not as a matter of convenience. The U-Turn movement shall not interfere or compromise the safety of traffic traveling in either direction. All vehicles towing damaged or disabled vehicles shall use an access gate(s) for the U-Turn unless authorized otherwise by PSP or PTC Maintenance personnel. The U-Turn shall then only be made under the direction of PSP or PTC Maintenance personnel. Interchange/Toll Plaza U-Turn Policies: The Pennsylvania State Police (PSP) or authorized Pennsylvania Turnpike Commission (PTC) personnel may authorize a U-Turn for emergency and non-emergency situations e.g. Over-height, Restricted Cargo, etc. The Interchange Manager shall coordinate authorized U-Turns at Interchanges/Toll Plazas, with the assistance of Turnpike Maintenance personnel. The driver of a non-authorized motor vehicle may reverse direction of travel only by passing through an Interchange and paying a toll. If the Interchange Manager is not available, the Duty Officer will be contacted for authorization and coordination. Each department shall refer to their specific procedures for further information. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

144 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 5.07 APPROVAL DATE: EFFECTIVE DATE: Prohibition Against Use of Electronic Devices to or Text While Driving Traffic Engineering and Operations REVISED DATE: A. PURPOSE: Numerous studies have demonstrated how the use of wireless communication devices to send text messages while driving, pose a significant safety risk to motorists, their passengers and others on the road. B. SCOPE: This policy applies to all Commission employees (full-time, part-time, temporary or summer/seasonal), consultants, vendors and independent contractors and their employees who use either a Commissionissued wireless communication device or who use their own wireless communication device while driving a Commission-owned vehicle, or who are conducting Commission business while driving a non- Commission vehicle. C. GENERAL POLICY: The use of wireless communication devices to type, send or read or text messages is prohibited while driving a Commission-owned vehicle or while driving a non-commission vehicle when conducting Commission business. D. DEFINITIONS: Vehicle: Machinery or equipment designed or used for the transportation of persons or property including but not limited to cars, trucks, maintenance machinery and equipment, road construction machinery and equipment, earth moving machinery and equipment, lawn mowers, and paving machinery and equipment. Wireless Communication Devices: A communication device that transmits and receives data, text, and/or voice without being physically connected to a network. This definition includes handheld wireless communication devices, but is not limited to, a mobile or cellular telephone, a text messaging device, a personal digital assistant, a pager, or a laptop computer. [1]

145 E. PROCEDURES: While driving, all wireless communication devices should be turned off. If you must use a wireless communication device, you are required to pull off the roadway at a safe location before typing, reading or sending s or text messages. Inform clients, associates and business partners of this policy as an explanation of why s or text messages may not be returned immediately. Caution should be taken when passengers are using wireless communication devices as it could cause the driver to become distracted. All wireless communication device usage must comply with all applicable federal, state and local laws, rules, regulations and ordinances. The Commission takes this wireless communication device policy seriously. Therefore, any violation of this policy will subject the employee to disciplinary action, up to and including termination. Violations of this policy also may result in possible loss of indemnification of the employee by the Commission. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

146 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 5.08 APPROVAL DATE: EFFECTIVE DATE: Terroristic Threats Traffic Engineering and Operations REVISED DATE: A. PURPOSE: This policy letter establishes guidelines on preparing for, responding to, and reporting of bomb threats, threats of violence, and suspicious activities or devices. B. SCOPE: Applies to departments and employees under the Pennsylvania Turnpike Commission s jurisdiction on Commission owned and leased buildings and worksites. C. GENERAL POLICY: It is our policy to take any threats to Commission owned or leased buildings, structures, worksites, and staff very seriously. This policy establishes the role and responsibilities of the appropriate personnel and provides procedures for ensuring rapid response through review of any threatening situation. D. DEFINITIONS: Terroristic Threat: For purposes of this policy letter, the term terroristic threat is defined as a violent act or an act dangerous to human life, in violation of the criminal laws of the United States, or of any state, to intimidate or coerce a government, the civilian population, or any segment thereof, in furtherance of political or social objectives. Homeland Security Threats (outside the Pennsylvania Turnpike Commission) are addressed in the response guidelines for Homeland Security Alert System. E. PROCEDURES: Applies to all Pennsylvania Turnpike Commission facilities. Reporting Terroristic Threats, Bomb Threats, Suspicious Activity, or Unusual Situations: All employees of the Pennsylvania Turnpike Commission should contact the Operations Center by dialing from the Central Office, or (8-HELP) from the Regional Offices. Any Pennsylvania Turnpike Commission Maintenance Shed or Interchange may contact the Operations Center by calling [1]

147 the Emergency 800 number, , if they receive a terroristic threat, find a suspicious object or observe suspicious activity or unusual situations. The nature and scope of a terroristic threat will be evaluated by the Pennsylvania State Police, Troop T. Telephone Threats: Any Pennsylvania Turnpike Commission office or facility is a potential target for a terroristic threat. A terroristic threat can be delivered in a variety of ways. However, most threats are received by telephone. A Pennsylvania Turnpike Commission Terroristic Threat Data Card, should be maintained by all telephones and completed in case of a telephoned terroristic threat. The cards can be obtained from the Central Office Stock Room through normal ordering procedures. If a terroristic threat is received, the steps outlined below are to be followed: 1. Record the exact time you received the call. 2. Concentrate on what the caller is saying, anything may be important. Try to keep the caller talking to obtain as much information as possible and especially the following: a. Type of threat b. Placation of threat c. Time of threat occurrence d. Description of threat e. Type and quantity of explosive, agent, device, etc. f. Who placed the threat? 3. Pay particular attention to: a. Background noises b. Voice of caller, accent, speech pattern, sex, age c. Is the voice familiar? d. If a bomb threat is received by or regular mail, do not delete the Notify your supervisor or, if your supervisor is not immediately available, notify another person in charge. 5. The manager/supervisor in charge will immediately contact the Operations Center with the location of the terroristic threat or related incident. The person who received the actual terroristic threat should be available for questioning by the Pennsylvania State Police. In the absence of Pennsylvania State Police, the Incident Commander should exercise his/her discretion in determining if evacuation is warranted. The Incident Commander should provide the Pennsylvania State Police with knowledge of significant building issues, such as the location of employees with disabilities that have an impact on evacuation. 6. Evacuation: The decision to evacuate a building in response to a terroristic threat will be based on a number of variables and will be the responsibility of the Manager/Supervisor in charge, Executive Staff. Immediate evacuation will not always occur. In situations where the building is not evacuated, an emergency search team will search the exterior and interior of the building with assistance from the Manager/Supervisor in charge. [2]

148 a. If it is determined that a building is to be evacuated: 7. Searches: 1. All employees and visitors should be instructed to clear the building according to a prearranged plan, usually the fire evacuation plan. Since in most buildings, employees will be evacuated by the use of ther fire alarms, employees may not know that the evacuation is due to a terroristic threat. 2. Elevators are not to be used. 3. Employees are to be instructed to take notice of the areas as they are evacuating, identifying the location of anything suspicious to the manager/supervisor in charge. 4. Desks, cabinets, and storage rooms should be unlocked except for confidential information that must be secured. 5. Lights should be left on but all PC s and other electrical equipment and appliances in your work area should be shut down provided sufficient time exits for safe evacuation. 6. Each person should remove his or her own personal belongings, such as vehicle keys, personal identification, handbags, lunch boxes, briefcases, and other personal containers or property from an evacuated area but should not touch any other property. 7. All employees and visitors are to be kept out of the area. Access to evacuated areas should be restricted to Pennsylvania State Police, fire, and other personnel designated by the person(s) in charge. Additionally, no one is to be permitted within at least 500 feet of an evacuated area except authorized personnel. 8. When a building has been evacuated, employees are not to return to the building until all employees are permitted to return. a. Before an evacuation decision is made, employees may be requested to scan their immediate work area for suspicious objects or items that do not fit their location. This procedure should be followed in all building evacuations because the reason for the evacuation may not be known until employees have left the building. The manager/supervisor, coordinator, or other designated staff may be requested to scan public access areas, such as the restrooms, snack bars, and reception areas. b. If a decision is made to evacuate the building, employees are to take note of the areas they pass through and report to the manager/supervisor in charge any unusual packages, equipment, or individuals. The manager/supervisor in charge of designated areas are to quickly check public access areas or other areas where employees are not located before they evacuate unless they are told to immediately leave the building. c. In all cases, employees are not to touch, open, or attempt to move any suspicious object. [3]

149 d. Employees are not to use portable radios, cellular telephones, cordless telephones, or any device that transmits a radio frequency (RF) pulse, except to communicate critical emergency information to key officials. e. If a suspicious object is identified, the manager/supervisor in charge is to be informed and he or she will notify the Pennsylvania State Police of the exact location of the item so that appropriate action can be taken by bomb squad or explosive ordinance disposal (EOD) personnel. 8. Explosions or Other Incidents: a. In the event of a suspected, threatened, or actual explosion or other incident in or near a Pennsylvania Turnpike Commission facility, a supervisor/manager or persn in charge will ensure that Operations Center, police, fire, and emergency personnel are immediately notified. b. The facility should be evacuated in a manner that keeps employees away from the area affected by the blast/act. c. Explosions can be caused by overloaded electrical transformers, gas line leaks, etc. However, it can take time to determine the actual cause of an explosion. d. Employees should be given basic information regarding precautions to take to keep them alert for the possibility of other explosive devices or hazards in the area as they are evacuating. 9. Written Threats, Mail Threats, Suspicious Objects: a. If a written threat is received, it must be handled with care. No one, other than the person receiving it, should touch the document. If a written threat is received by , do not delete the . The employee should immediately notify his or her supervisor if available or other mangement personnel who should call the Operations Center. The computer should remain as is, do not delete, forward, etc. The Operations Center will then notify the Pennsylvania State Police. The Pennsylvania State Police will interview the person receiving the threat and the supervisor/manager in charge and determine the appropriate response. UNDER NO CIRCUMSTANCES SHOULD ANY THREAT BE IGNORED. b. If an employee finds a suspicious object that he or she believes may be harmful, the employee should immediately notify his or her supervisor if available, or other management personnel who should contact the Operations Center, who will then notify the Pennsylvania State Police. No one should touch the object. The Pennsylvania State Police will assess the situation and determine the proper response. c. If an employee observes a suspicious activity or an unusual situation, or hears, sees, or receives communications that may be evidence of a threat or pending threat, the employee should immediately notify his or her supervisor if available, or other management personnel who whoud call the Operations Center, who will then notify the Pennyslvania State Police. The Pennsylvania State Police will interview the person who [4]

150 10. Office Closings: originally notified his or her supervisor. UNDER NO CIRCUMSTANCES SHOULD ANY SERIOUS REPORT BE IGNORED. a. If a decision is made by Commission management after consulation with the Pennsylvania State Police and emergency authorities not to permit employees to return to the building for reason of life/safety, the department in charge of the facility should be notified. b. If offices remain open, supervisors should be flexible in permitting employees to use annual or personal leave if they do not want to return to the building. 11. Training/Education: a. Training and/or education on responding to threats, and other related incidents is mandatory for all Pennsylvania Turnpike Commission employees. Training/education should be available on an ongoing basis and recorded in accordance with the policy/procedure. b. Employees who regularly open mail or receive packages should be provided specific training on how to recognize suspicious letters or packages. The Pennsylvania State Police can provide this training as well as the United States Postal Inspection Service. Due to recent circumstances, we feel it is in the best interest for all employees to be informed of how to deal with suspicious packages and letters to protect not only yourself, but your coworkers. Specific procedures which address the handling of suspicious packages and letters for employees and supervisors are available in the Operations Center. Also available is an advisory flyer with reminder information and an informational flyer from the Centers for Disease Control which may be posted and distributed in your work area. If you have any concerns or questions, please contact the Occupational Safety and Insurance Supervisor. REMINDER: IF YOU SUSPECT ANYTHING, PLEASE CONTACT YOUR IMMEDIATE SUPERVISOR AND CONTACT THE OPERATIONS CENTER AT Also see the Workplace Violence Policy #3.7. This Policy Letter supersedes all previous Policy Letters on this subject. [5]

151 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 5.09 APPROVAL DATE: EFFECTIVE DATE: Energy Conservation and Electrical Devices in Commission Owned Buildings Facilities and Energy Management Operations REVISED DATE: A. PURPOSE: To conserve energy and provide improved fire/life safety in all Commission owned facilities. This policy applies to new or replaced appliances and takes effect 15 days after the effective date. B. SCOPE: This directive applies to all Pennsylvania Turnpike Commission employees, including full-time, temporary, supplemental and summer as well as independent contractors working in Commission owned facilities. C. GENERAL POLICY: To improve energy efficiency of Commission owned facilities, ENERGY STAR requirements of Commission provided electrical devices must be met. ENERGY STAR is the national symbol for energy efficiency in America and is in partnership with the US Environmental Protection Agency and the Department of Energy in order to improve energy performance and greatly reduce energy usage and greenhouse gas emissions. a. Those Commission provided electrical devices, which include dehumidifiers, room air conditioners, refrigerators and water coolers, in Commission owned facilities must be ENERGY STAR qualified models. b. Qualified product lists for the specified appliances can be found at under the "Products" tab. Qualified products may also be recognized by the ENERGY STAR mark, which may appear on the appliance, packaging or Energy Guide label. Employees, visitors, and other occupants of the Commission owned facilities may not use Restricted Electrical Devices as defined in Section D(c), unless approved by Facilities and Energy Management Operations. The Commission reserves the right to immediately have removed any appliances that are deemed by the Commission Facilities and Energy Management Operations Department, to be dangerous or unfit for use. [1]

152 Non-Commission provided electrical devices not listed in Section 3.c. may be used in Commission owned and leased facilities with the approval of the department head or supervisor in charge of the area. These approved devices include: a. radios, lamps, clocks, microwaves, refrigerators; b. those approved by Human Resource as accommodations for disabilities; and c. those required by medical necessity supported by physician's documentation and approved by Human Resources. Every effort shall be made to limit the use of these electrical devices. All approved appliances, with the exception of those that must run continuously, shall be turned off when not in use. The number of approved appliances in agency offices should be limited to centralized locations for shared use. Lighting: Every effort shall be made to reduce the usage of electric lighting in all Commission facilities. Employees should maximize the usage of natural light by turning off all nonessential lighting. Where possible and appropriate, all Commission facilities will install in either new by constructed areas or retrofit in existing areas, lighting products that are technologically superior in energy saving efficiency. The usage of incandescent lighting shall be discontinued wherever ENERGY STAR qualified compact fluorescent light bulbs can be used. At no time should both types of lighting be used simultaneously in the same fixture. The removal and/or replacement of permanent fixture lamps shall be authorized by Facilities and Energy Management Managers or designated Commission official. Office Equipment. All powered office equipment shall be turned off when not in use, unless it is detrimental to the operation of the equipment or agency to do so. Items such as copiers, computers, calculators, paper shredders, etc., should be turned off at the end of the work day, and in particular, during the weekend and/or holiday periods. Interior Environment. In all Commission owned facilities thermostats should be set at 67 degrees in the winter and 75 degrees in the summer. This excludes areas that currently are not heated or cooled and areas with unique environmental needs as approved by the Facilities and Energy Management Operations department. RESPONBILITIES a. The Facilities and Energy Management Operations will: [2]

153 (1) Authorize Commission Building/Facility Managers to measure compliance within each facility in cooperation with the appropriate department head. D. DEFINITIONS: For the purpose of this policy, the following definitions apply: Non-Commission Provided Electrical Device. Equipment or appliance not owned or provided by the Commission, which requires alternating current (AC) electricity. Commission Provided Electrical Device. Equipment or appliance owned or provided by the Commission, which requires alternating current (AC) electricity. Restricted Electrical Devices. The use of the following devices are specifically prohibited within Commission facilities unless approved in writing by the Manager of Facilities and Energy Management Operations or designated Commission official. E. PROCEDURES: (1) Cooking Appliances, including, but not limited to: a) Coffee makers b) Microwave ovens c) Toasters d) Toaster ovens e) Grills f) Popcorn makers (2) Hair Dryers (3) Curling Irons (4) Non-Commission provided space heaters (5) Water Coolers (6) Refrigerators (7) Dehumidifiers (8) Room Air Conditioners a. The Facilities and Energy Management Operations will: (1) Authorize Commission managers to measure compliance within each facility in cooperation with the building's occupants. The Building/Facility Manager will have the authority to enforce energy conservation measures. [3]

154 (2) Review and approve all requests to utilize non-commission provided electrical powered devices in Commission owned facilities. (3) Develop and monitor programs with affected departments to ensure adherence to this policy in facilities where Commission Building/Facility Managers are not assigned. (4) Notify Building/Facility Managers of policy violations. The Manager will notify the Supervisor in the affected area or non-compliant area) of the violation. If the violation is not resolved within 24 hours, the Building Manager will require the device to be removed from the building. b. Department Heads are responsible for: (1) Assigning staff responsible to ensure that employees comply with policy outlined in this policy. (2) Training their employees in energy conservation practices. Facilities and Energy Management Operations will provide a best practices overview to Department heads who can share with their staff. c. Managers/Supervisors are responsible for: (1) Inspecting work areas for compliance. (2) Visually checking appliances that have been approved by the Commission or designated officials to ensure compliance for safe operations. (3) Reporting any defective on non-compliant electrical devices to the Department Head or Facilities and Energy Management Operations. (4) Reporting unauthorized electrical devices to the Facilities and Energy Management Operations Department. d. Employees are responsible for reporting electrical device defects such as overheating, frayed electrical cords, etc., to their supervisor. This Policy Letter supersedes all previous Policy Letters on this subject. [4]

155 POLICY \ POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 6.01 APPROVAL DATE: EFFECTIVE DATE: Construction Contract Change Order Approval Engineering REVISED DATE: A. PURPOSE: The purpose is to establish a general policy governing the review and approval levels for changes required on construction contracts awarded by the Commission in accordance with Policy 7.4. B. SCOPE: This policy applies to all construction contracts awarded by the Commission. C. GENERAL POLICY: The Contingency Value originally established at contract award authorizes the maximum adjustment of the contract amount for Category 1 Change Orders. The following establishes the review and approval levels required for construction contract Change Orders within Category 1 and having a Net Value under the available contingency. The limits represent the Absolute Value for individual Change Orders. Review By Approval Level Construction Engineer Manager $250,000 Assistant Chief Engineer- Construction $500,000 Chief Engineer Over $500,000 and Under Contingency Amount Net The following must be submitted for Commission approval: All Category 2 Change Orders. All final Change Orders. All Change Orders on Federally Funded Projects [1]

156 The Project Manager will be responsible for coordinating the preparation of Change Order documents and initiating the securing of required signatures prior to authorizing any payment to the Contractor against the Change Order. The General Consulting Engineer (GCE) will perform the following reviews annually: Independent quality assurance review of the Change Order Policy and Procedures. Detailed review of all change orders on a minimum of 20% of selected projects with an approved final payment. D. DEFINITIONS: Absolute Value- The sum of all additions and deductions without consideration to the negative value of deductions. Change Order- A written order authorizing any or all of the following on a specified contract: having the contractor perform additional or extra work, deleting work, or adjusting contract time. A Change Order may be initiated for the following circumstances: CATEGORY 1: CHANGES - Revisions within original scope Adjustments required to meet actual field conditions encountered. Work in amounts greater than the original scope. Adjustments in quantities to reflect actual work performed. Changes in design or specifications or both that maintain the original intent of the project. CATEGORY 2: SUPPLEMENTS - Revisions outside the original scope Changes in design for addition of work beyond the original intent of the project. Specification changes for addition of work beyond the original intent of the project. Work required beyond the original scope or outside the project limits. Contract time adjustments. Implementation of a decision of the Commission in resolving a claim by settlement, litigation or a court decision. Assessment of liquidated damages, lane rental fees, road user costs, or incentive/disincentive payments. Category 1 Change Orders above the contingency. Contingency Value- A value added to the contract amount that provides authority for the maximum adjustment of the contract amount for Category 1 Change Orders. The original Contingency Value is established at contract award. Net Value- The difference between total additions and total deductions. [2]

157 E. PROCEDURES: Procedures for review, approval, processing and distribution of construction contract Change Orders are defined in the Construction Operations Manual, section B.5-1- Preparation of Change Orders on Construction Contracts.. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

158 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 6.02 APPROVAL DATE: EFFECTIVE DATE: Core Boring Disposal Policy Engineering REVISED DATE: There are numerous locations where stockpiled core samples are creating problems and unnecessary costs for our Maintenance Forces. These core samples are not only occupying valuable space but they must be occasionally relocated to allow performance of maintenance and rehabilitation activities. A new retention schedule is necessary to relieve these conditions. Effective immediately, core boring samples are written documentation will be disposed of as outlined in the paragraphs to follow. Core boring samples from the Soils Investigation may be discarded after six (6) months have elapsed following the acceptance of the Final Settlement Certificate Computations by the contractor and the project has been accepted by the Commission at a regularly scheduled Commission meeting, provided the contractor has not notified the Commission of any rejection, exception, or intention to file a claim relating to any matter. In the event of any of the above provision, the samples must be kept until authorization is requested and received from the Legal Department to discard. The paper records, however, such as the core boring logs, the foundation reports and the geological engineering profiles and reports must be retained for the periods of time specified below: 1. Core boring location for structures, daily core reports, test boring records and other similar records: three (3) years after final acceptance of the project. Microfilm before destroying. 2. Weekly core boring tests: Destroy after final acceptance of project. 3. In the event a claim has been filed by the Contractor, these records should be retained pursuant to direction by the Legal Department. This Policy Letter supersedes all previous Policy Letters on this subject. [1]

159 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 6.03 APPROVAL DATE: EFFECTIVE DATE: Management of Pennsylvania Turnpike Keys Facilities and Energy Management Operations REVISED DATE: A. PURPOSE: To establish a policy to manage the key and lock access at the Pennsylvania Turnpike Commission (PTC). The management of keys and locks will provide a safer work environment and contribute to the protection of PTC assets. B. SCOPE: This policy applies to all PTC employees including full-time, temporary, supplemental, and summer, as well as contractors, subcontractors, consultants, sub consultants, concessionaires, authorized service providers, emergency response companies, and government agencies and entities (Recipient). C. GENERAL POLICY: The Facilities Security Supervisor, or his/her designee, will approve requests for keys to be used by an individual in the performance of his/her duties. Approval of key requests will be subject to the discretion of the Facilities Security Supervisor or his/her designee. Key requests that are denied by the Facilities Security Supervisor, or his/her designee, may be appealed to the Manager of Facilities Operations and Maintenance. Final appeals may be made to the Director of Facilities and Energy Management Operations (FEMO) regarding key requests that have been denied by the Facilities Security Supervisor and the Manager of Facilities Operations and Maintenance. The issued key(s) remains the exclusive property of the PTC and is provided to the Recipient solely for PTC business. Upon demand from the PTC, the Recipient will be required to immediately return the key(s) to the Facilities Access Coordinator. Any unattended open access gate must be immediately reported to the Traffic Operations Center upon discovery. Any employee found to have left open an access gate may be subject to disciplinary action. Any non-commission recipient found to have left open an access gate may have his/her gate key(s) revoked and may not be reimbursed for the additional travel that is required throughout the duration of the Recipient s contract. [1]

160 D. PROCEDURES: ISSUING KEYS TO PTC EMPLOYEES AND PENNSYLVANIA STATE POLICE PERSONNEL Requests for keys and locks must be approved by the PTC/PSP employee s (employee) immediate supervisor and the employee s department head. Key request(s) for areas managed by other units require the additional approval of the responsible department s department head and/or the managing director of the facility. Requests must then be forwarded to the mailbox for Card\Key Access and Repairs for further approval and processing. The request must include the Name, Employee Number, Job Title, Employee Location, and Cost Center of the employee to whom the key(s) is to be issued, the type of access required, and the purposes for which the key is to be issued. The employee receiving the key will be required to sign an agreement for it and return the original signed agreement to the Facilities Access Coordinator prior to issuance of the key(s) to the employee. Employees must return the key(s) to their supervisor at the time of separation from employment with the PTC/PSP and must complete and submit a Key Return Form along with the key(s). The employee s supervisor is responsible for forwarding the key(s) and the Key Return Form to the Facilities Access Coordinator. Employees must also return the key(s) to their supervisor if the key(s) is no longer needed for their work/project. Employees must complete and submit a Key Return Form along with the key(s). The employee s supervisor is responsible for forwarding the key(s) and the Key Return Form to the Facilities Access Coordinator. Employees are prohibited from transferring or loaning keys to another individual. The key is for the exclusive use of the person to whom it was issued. Anyone who has a key lost or stolen and anyone loaning, transferring, giving possession of, misusing, duplicating, modifying, or altering the key or the lock - may be charged by the PTC for all associated costs and may be subject to disciplinary action. Duplicated keys will be confiscated upon discovery. In order to address unique security and/or access requirements, a key(s) may be issued to be shared among employees. The issuance of a shared key(s) requires the approval of the Director of Facilities and Energy Management Operations and the approval of the requesting department s department head. The shared key(s) will be issued to the employee s supervisor. The supervisor may distribute the key(s) to employees engaged in the official Turnpike business or duties for which the key(s) was issued. It is the responsibility of the requesting department to monitor the assignment and return of the key(s). The employee s supervisor is responsible for maintaining clear and accurate assignment records for the key(s). In the event the key(s) is lost, stolen, altered, or duplicated, the required fee(s) will be charged to the appropriate employee according to the assignment records. The required fee(s) will be charged to the supervisor in the event the assignment records are unclear, inaccurate, or missing. Persons using the key(s) are subject to be questioned by the Compliance Department and/or the State Police. The person questioned will be required to prove authorized use by showing his/her [2]

161 driver s license, key number, and PTC Identification Access Card. The Compliance Department and the State Police can verify the names and key numbers of authorized employees through the Facilities Security Supervisor and/or the Facilities Access Coordinator. Additional keys will not be issued to an employee: 1. Who already possesses a key(s) for which a signed key agreement(s) is not on file in the FEMO Department, or 2. Who possesses a key(s) not required for his/her present job, or 3. Who has not paid the required fee(s) for a lost, stolen, altered or duplicated key, or 4. Who has not paid any assessed costs resulting from loaning, transferring, giving possession of, misusing, duplicating, modifying, or altering a key(s) or lock(s) ISSUING KEYS TO CONTRACTORS, SUBCONTRACTORS, CONSULTANTS, SUBCONSULTANTS, CONCESSIONAIRES, AUTHORIZED SERVICE PROVIDERS, EMERGENCY RESPONSE COMPANIES, AND GOVERNMENT AGENCIES AND ENTITIES OTHER THAN PENNSYLVANIA STATE POLICE Requests for keys and locks must be approved by the immediate PTC point of contact and the PTC Department Head for the department in charge of the work or project. Key request(s) for areas managed by other departments require the additional approval of the responsible department s department head and/or the managing director of the facility. Requests must then be forwarded to the mailbox for Card\Key Access and Repairs for further approval and processing. The request must include the Name of the Company s Representative, the Company Name and Address, the Vendor Number, the Contract Number and Work or Project Completion Date, the type of access required, and the purposes for which the key is to be issued. The issued key(s) will be assigned by the Facilities Access Coordinator with a return due date based on the contract completion date. A contract extension(s) must be communicated in writing to the Facilities Access Coordinator prior to the return due date via the mailbox for Card\Key Access and Repairs. The representative receiving the key(s) will be required to sign an agreement for it (them), and there shall be a deposit charged to the company for the issuance of the key(s). The original signed agreement(s) and deposit(s) must be received by the Facilities Access Coordinator prior to issuance of the key(s). The deposit will be forfeited if the key(s) is lost, stolen, tampered with, duplicated, or not received by the Facilities Access Coordinator within thirty (30) days of the return due date. In order to address unique security and/or access requirements, the PTC may accept a bond(s) in lieu of the deposit(s). A fee(s) will be assessed in accordance with the bond agreement for a key(s) that is lost, stolen, tampered with, duplicated, or not received by the Facilities Access Coordinator within thirty (30) days of the return due date. If the said fee(s) is not paid within the period prescribed in the bond agreement, the PTC will seek payment pursuant to the bond provided. A key(s) shall be returned to the PTC point of contact upon the return due date or if a key(s) is no longer needed for the work or project, whichever is earlier. When returning a key(s), the company\organization must complete and submit a Key Return Form along with the key(s) being [3]

162 returned. It is the responsibility of the PTC point of contact to secure the key(s) and the Key Return Form and forward them to the Facilities Access Coordinator. Recipients are prohibited from transferring or loaning keys. The key is for the exclusive use of the recipient. Any recipient who has a key(s) lost or stolen and any recipient loaning, transferring, giving possession of, misusing, duplicating, modifying, or altering the key or the lock - may be charged by the PTC for all associated costs up to and including legal and contractual penalties. Duplicated keys will be confiscated upon discovery. Contractors, consultants, and concessionaires may distribute keys to subcontractors and sub consultants engaged in the official Turnpike business for which the keys were issued. In these instances, the contractors, consultants, and concessionaires are required to monitor the assignment and return of the keys. Recipients using a key(s) are subject to be questioned by the Compliance Department and/or the State Police. The person questioned will be required to prove authority by showing his/her driver s license and company ID, key number, and his/her PTC Identification Access Card if one was issued. The Compliance Department and the State Police can verify the names and key numbers of authorized recipients through the Facilities Security Supervisor and/or the Facilities Access Coordinator. Additional keys will not be issued to an individual or company: 1. That already possesses a key(s) for which a signed key agreement(s) is not on file in the FEMO Department, or 2. That possesses a key(s) not required by his/her or its present work or contract, or 3. That has not paid any assessed cost(s), up to and including legal and contractual penalties, resulting from loaning, transferring, giving possession of, misusing, duplicating, modifying, or altering a key(s) or lock(s), or 4. That possesses a key(s) for which the return due date has passed LOST/STOLEN KEYS PTC EMPLOYEES AND PENNSYLVANIA STATE POLICE Keys that are lost, stolen, or damaged must be reported to the Facilities Access Coordinator within forty-eight (48) hours of discovery. In the event a key(s) issued to a PTC employee or PA State Police employee is lost, stolen, altered, or duplicated, the employee will be required to reimburse the PTC thirty ($30.00) dollars for a unit key, sixty ($60.00) dollars for a section key, one hundred twenty five ($125.00) dollars for a district key, and two hundred fifty ($250.00) for a master key. Reimbursement is to be made by check or money order payable to the Pennsylvania Turnpike Commission and forwarded to the Facilities Access Coordinator for final disposition before a replacement key will be issued. The reimbursement shall be submitted within thirty (30) days of discovery of the loss or theft. The fee may automatically be deducted from the employee s or PA State Police employee s paycheck if reimbursement is not received within thirty (30) days. In the event a key(s) is lost or stolen under extreme circumstances in the line of duty, the FEMO Director is authorized to reduce or waive the fee(s). [4]

163 Type of Key Reimbursement Unit $30 Section $60 District $125 Master $250 Additionally, a PTC employee who has a key(s) lost or stolen - and any employee loaning, transferring, giving possession of, misusing, duplicating, modifying, or altering the key or the lock - may be charged by the PTC for all associated costs, as set forth in the key agreement, and may be subject to disciplinary action up to and including termination. In the event a PA State Police employee has a key(s) lost or stolen and in the event of an employee loaning, transferring, giving possession of, misusing, duplicating, modifying, or altering the key or lock - the PTC may refer the employee to PA State Police management for the assessment of all associated costs, as set forth in the key agreement, and recommend disciplinary action up to and including termination. LOST/STOLEN KEYS CONTRACTORS, SUBCONTRACTORS, CONSULTANTS, SUBCONSULTANTS, CONCESSIONAIRES, AND AUTHORIZED SERVICE PROVIDERS Keys that are lost, stolen, or damaged must be reported to the recipient s PTC point of contact within forty-eight (48) hours of discovery. There shall be a deposit(s) charged to the recipient for the issuance of a key(s). A deposit(s) will be forfeited if a key(s) is lost, stolen, altered, or duplicated. A deposit(s) is to be made by check or money order payable to the Pennsylvania Turnpike Commission and forwarded to the Facilities Access Coordinator prior to issuance of a key(s). In the event a key(s) is lost or stolen under extreme circumstances in the execution of official PTC business for which a key(s) was issued, the FEMO Director is authorized to reduce or waive the forfeiture of a deposit(s). Type of Key Deposit: contracts issued by Engineering Department Deposit: contracts issued by all other Departments Unit $1000 $250 Section $1000 $250 District $1000 $500 Master $1000 $1000 Additionally, a recipient who has a key(s) lost or stolen - and any recipient loaning, transferring, giving possession of, misusing, duplicating, modifying, or altering the key or the lock - may be charged by the PTC for all associated costs as set forth in the key agreement. Contractors, consultants, and concessionaires may distribute a key(s) to subcontractors and sub consultants engaged in the official Turnpike business for which a key(s) was issued. In these instances, [5]

164 the contractors, consultants, and concessionaires are required to monitor the assignment and return of the key(s). LOST/STOLEN KEYS - EMERGENCY RESPONSE COMPANIES AND GOVERNMENT AGENCIES AND ENTITIES OTHER THAN PA STATE POLICE Keys that are lost, stolen, or damaged must be reported to the recipient s PTC point of contact within forty-eight (48) hours of discovery. There shall be a deposit(s) charged to the recipient for the issuance of a key(s). A deposit(s) will be forfeited if a key(s) is lost, stolen, altered, or duplicated. A deposit(s) is to be made by check or money order payable to the Pennsylvania Turnpike Commission and forwarded to the Facilities Access Coordinator prior to issuance of a key(s). In the event a key(s) is lost or stolen under extreme circumstances in the execution of official PTC business for which a key(s) was issued, the FEMO Director is authorized to reduce or waive the forfeiture of a deposit(s). Type of Key Deposit Unit $125 Section $125 District $250 Master $500 Additionally, a recipient who has a key(s) lost or stolen - and any recipient loaning, transferring, giving possession of, misusing, duplicating, modifying, or altering the key or the lock - may be charged by the PTC for all associated costs as set forth in the key agreement. This Policy Letter supersedes all previous Policy Letters on this subject. [6]

165 PTC (12/05) Policy Subject: PTC Vehicle Policy PENNSYLVANIA TURNPIKE COMMISSION POLICY AND PROCEDURE This is a statement of official Pennsylvania Turnpike Commission Policy Number: 6.4 Approval Date: 7/18/2012 Effective Date: 8/02/2012 Revised Date: 7/09/2012 Responsible Department: Maintenance 1) Purpose: To establish policies, procedures, and responsibilities for the assignment, use, and control of Commissionowned personnel vehicles. 2) Scope: This policy applies to all Commission-owned vehicles, including automobiles, station wagons, vans or fourwheel drive sport utility vehicles. The policy applies to all pickup trucks used as staff vehicles (for example, those used by construction field staff, foremen, assistant foremen). The policy does not apply to special purpose equipment assigned to field Maintenance Districts and Sections. The PTC Driver and Procedures Manual, prepared by the Maintenance Department, is a supplement to the policy and provides guidance and procedures pertaining to use of all vehicles by employees. 3) Vehicle Committee: The Vehicle Committee shall be responsible for reviewing PTC vehicle assignments and usage and providing guidance and advice to the Chief Executive Officer. This committee is made up of the Director of Maintenance, Director of Operations Review, Director of Operations/Projects West, Director of Operations/Projects East, Assistant Chief Engineer - Construction, and Director of Facilities and Energy Management Operations. The type of vehicle assigned to the individual will be recommended by the Director of Maintenance and approved by the Chief Executive Officer. The roles and responsibilities of the Vehicle Committee are: Review Vehicle Policy to identify areas of improvement and/or clarification. Provide recommendations to the Chief Executive Officer based upon the committee s review of the vehicle policy. Review mileage reimbursements for accuracy and policy compliance. 166 of 292

166 Perform annual review of current PTC vehicle assignments to determine compliance with vehicle policy requirements. 4) Assignment Policy: Assignments of vehicles will be on either a permanent or pool basis. Employees must have completed the PTC Defensive Driving course prior to operating a PTC vehicle. i) Permanent Assignment: The Chief Executive Officer has the discretion to make permanent assignment of vehicles, according to the following requirements: (1) Executive: Commissioners, Chief Executive Officer and Chief Operating Officer. (2) Senior Level Management: Assignment based on the employee s position and as part of the compensation package. Applies to all senior level employees who report directly to the Chief Executive Officer or Chief Operating Officer. Assignment to directors who do not report directly to the Chief Executive Officer or Chief Operating Officer shall be made at the discretion of the Chief Executive Officer. (3) Job Related: Assignment based on the employee s job requirement to perform essential day to day job functions and operation of a Commission vehicle 12,000 business miles or more per year. (4) Emergency/Critical Operational Response: Assignment based on the employee s 24/7 callout status to address emergency/critical operational needs. (5) Fleet/Utility Vehicle: Assignments based on the employee s 24/7 callout emergency operational response status. Fleet/Utility vehicles are qualified non-personal use branded vehicles with Official Use Only Plates and required 24/7 Emergency/Critical Operational Response. Other than authorized commuting privileges to and from work, all other personal use of these vehicles is strictly prohibited. All permanent vehicle assignments will be reviewed in January of each year to review the usage of business and commute mileage to determine if vehicle assignment is necessary. The Director of Maintenance shall be responsible for maintaining a current list of permanent assignments and the basis for the assignment. The Director of Maintenance shall forward this listing to the PTC Vehicle Committee for review no later than January 25 of each year. The Committee will forward recommendations to the Chief Executive Officer for final approval. ii) Pool Assignments: (1) Central Office Pool, WRO Pool and ERO Pool: Vehicles for temporary assignment may be assigned to Central Office pool, ERO pool and WRO pool for Commission-wide use. (2) Pool vehicles are to be used for official Commission business only and not for personal use. Employees may not use pool cars to commute to and from home. (3) All pool vehicles are to be assigned based on an operational need as determined by the Director of Maintenance or his/her designees. Assignments may not exceed a period of one month. The employee must utilize the vehicle each day of the requested period. 167 of 292

167 (4) Employees must check availability of a pool vehicle prior to using their personal vehicle and receiving reimbursement for mileage. Employee must have signed verification that a pool car was unavailable. Exceptions to the policy may be made to the Director of Maintenance by the Department Head. (5) Employees utilizing pool vehicles are responsible for reporting any accidents, mechanical defects, maintenance or other problems with assigned vehicles immediately upon occurrence, in accordance with procedures outlined in the PTC Driver and Procedures Manual. (6) The Director of Maintenance shall promptly make the Department Head and the Accident Review Board aware of any accidents involving the employee s use of a pool vehicle. (7) Employees who sign out a pool vehicle must complete the Daily Record of Pool Vehicle (Form # ) and include the following information: Employee s Name, Date, Start and Stop Mileage, Purpose of the Trip, Total Miles Driven. The returned vehicle must be clean and refueled. Department Automotive Officers, ERO and WRO Automotive Officers will be responsible for monitoring the return and condition of pool vehicles. 5) IRS Tax Requirements: Transportation (Commuting) benefits shall be taxed in accordance with the Internal Revenue Code and applicable regulations. 6) Mileage Reporting Requirements: Employees must review the Commute Guidelines Memo before driving a Commission vehicle. The Commute Guidelines Memo explains how employees with vehicle assignments need to report their mileage. This memo can be found in the PTC Forms folder on Cofs 1 R:\Vehicle Mileage Reports. 7) Operational Issues: (1) Except as provided in subsection 4 below, Commission-owned vehicles shall be driven by Commission employees only, except when other operators are authorized to do so in writing by the Chief Executive Officer. (2) Commission-owned vehicles may be used to transport customers who are in need of assistance or non-employee third parties (such as consultants, lawyers, or others contracted to provide services to the Commission), when they are performing Commission business or are involved in Commission functions or activities. (3) Except as provided in subsection 4 below, an employee may not use a Commission vehicle for private purposes. Incidental stops for personal errands while commuting en route to or from work are permitted, except when operating a fleet/utility vehicle. An employee may not use a Commission vehicle to transport members of the employee s family, except with prior written approval from the Chief Executive Officer or Chief Operating Officer. (4) Commissioners, the Chief Executive Officer and Chief Operating Officer, by reason of their defined duties, which require 24/7 access to a Commission vehicle, are exempt from the restrictions set forth in subsections 1-3 above and may retain assigned vehicles in their possession at all times. 168 of 292

168 Proper judgment must be exercised in the use of assigned vehicles. A spouse of a Commissioner, Chief Executive Officer or Chief Operating Officer may operate a Commission vehicle while transporting a Commissioner, the Chief Executive Officer and Chief Operating Officer while that person is in the performance of his/her official duties or in emergency situations. While transporting a Commissioner, the Chief Executive Officer and the Chief Operating Officer in the performance of his/her official duties, a spouse will be considered an employee for purposes of the Act of October 5, P.L. 693, No (l), as amended and the Workers Compensation Act. (5) Commission vehicles may only be operated by properly licensed and responsible [Commission] employees and officers and may not be operated outside of the Commonwealth to a point beyond 300 miles from the place of origin, official headquarters, or residence unless authorized by the [CEO]. 4 Pa Code Failure to comply with Commission policies and/or the requirements of this policy may result in the revocation of vehicle assignment privileges and/or disciplinary action up to and including termination. This policy letter is intended to provide guidance and appropriate controls with respect to use and assignment of PTC-owned vehicles. However, the Commission recognizes that specific, unforeseen or unique circumstances may exist or occur that require exceptions be made with respect to strict application of, or adherence to, this policy. Such exceptions may be made at the discretion of the PTC s Chief Executive Officer or Chief Operating Officer. This Policy Letter supersedes all previous Policy Letters on this subject. 169 of 292

169 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: APPROVAL DATE: EFFECTIVE DATE: Utility Crossing License Agreements Engineering REVISED DATE: A. PURPOSE: This policy letter establishes the process by which the PTC will grant permission for the crossing of utility facilities over, under, or through the Commission s operating right-of-way. B. SCOPE: This policy and the procedures outlined within this policy letter apply to all utility facilities using, crossing and occupying Turnpike operating right-of-way and infrastructure. The fee structure for this policy does not apply to those utility crossings that are within public right-of-way (as defined below) or service lines to Commission facilities C. GENERAL POLICY: The PTC will review and process all requests for placement of utility facilities crossing over, under or through the Commission s operating right-of-way upon receipt of a $500 (five hundred dollars) non-refundable administrative processing fee. Utilities occupying public right-of way are exempt from the processing fee, however the Commission must review a request and upon approval, the Utility would be required to enter into a license agreement with the Commission. Service lines to Commission facilities are exempt from the processing fee, however the Utility would be required to enter into a right-of-way agreement with the Commission. No fees will be charged for requests for an alteration, upgrade, or removal of a Utility s existing facilities. D. DEFINITIONS: Commission s operating right-of-way: The area owned and utilized by the Commission for the specific purpose of providing for and operating a limited access highway, along with all supporting infrastructure, including areas encumbered by a specific Turnpike use to which no other entity has been given a transferable right to use. Occupation by utilities can only be by license specifically given by the Commission. Public right-of-way: Areas owned by PennDOT or other Governmental entities that provide a defined right-of-way corridor for public transportation under their exclusive control where utilities may install their facilities in accordance with 15 Pa. C. S. A. section 1511(e). Any utility, [1]

170 private or public, which desires to utilize PTC operating right-of-way, must file a request with our Engineering Department. All requests must be reviewed and approved by the Chief Engineer or designee. E. PROCEDURES: All requests for placement of utility facilities within the Commission s operating right- of-way, exclusive of those utilities occupying public right-of -way require a non-refundable $500 (five hundred dollars) administrative processing fee. The request will not be processed until the fee is received. This fee is routed to the Accounting Department for deposit and record keeping. Engineering will review each request and prepare a standard crossing license agreement, with input from the Legal Department, the Safety & Risk Management Department and the Consulting Engineer, as needed. All such agreements may be prepared and executed under the blanket authority granted by the Commission and may be executed by the Commission upon recommendation by the Chief Engineer or designee. Requests for the utilization of Commission property that is not considered operating right-ofway will continue to be reviewed and processed in accordance with Policy Letter Land Use Policy. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

171 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.01 APPROVAL DATE: EFFECTIVE DATE: Investment Policy and Guidelines Finance and Administration REVISED DATE: A. PURPOSE: To define guidelines and operational factors governing the investment of financial assets of the Pennsylvania Turnpike Commission. B. INVESTMENT OBJECTIVES: A. The safety and preservation of invested funds. B. To maintain adequate liquidity to meet Commission cash flow requirements. C. Maximize the Total Rate of Return. D. Provide preference to Pennsylvania investments when the ROI is no less than equal to the non-pennsylvania investment. C. INVESTMENT GUIDELINES: 1. Eligible Securities (to the extent permitted by any applicable indenture of trust) a. U. S. Treasury Bills, Notes, Bonds, Strips b. Time Deposits issued by a banking association organized and doing business under the laws of the United States of America or of any state that have a combined capital and surplus of at least $50,000,000. c. Certificates of Deposit that are fully collateralized and issued by a bank, savings and loan or trust company organized under the laws of the United States or any state thereof. d. Investment Agreements with a bank, a bank holding company or a financial institution that has outstanding long-term indebtedness rated AA or better by Moody s and S&P. [1]

172 e. Obligations of any of federal agencies which obligations are backed by the full faith and credit of the United States of America, including (but not limited to): Export-Import Bank Farm Credit System Financial Assistance Corporation Farmers Home Administration General Services Administration U.S. Maritime Administration Small Business Administration Government National Mortgage Association (GNMA) U.S. Dept. of Housing and Urban Development (PHAs) Federal Housing Administration f. Senior debt obligations rated a minimum of AA by Standard & Poor s Ratings Group ( Standard & Poor s) and Aa2 by Moody s Investors Service ( Moody s) issued by the following Government-Sponsored Enterprises (referred to as Federal Agencies throughout this policy): Federal Home Loan Bank Federal Farm Credit Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Association g. Mortgage-backed securities issued by an approved Federal Agency and Collateralized Mortgage Obligations, so long as such securities are rated a minimum of Aa2 by Moody s and AA by Standard & Poor s. h. Debt obligations of any state or local government entity, whether for itself, or as a conduit issuer, provided that the securities are rated in the Aa/AA category by at least two of Standard & Poor s, Moody s and Fitch Investors Service ( Fitch ) and do not have a rating from any of Standard & Poor s, Moody s and Fitch below the Aa/AA category (without regard to subcategories of ratings), and provided that if a short-term rating is provided for the securities that they are rated in the top tier by at least two of the three of Standard & Poor s (A1 or better), Moody s (VMIG1 or P1), and Fitch (F1) and do not have a rating from any of the three rating agencies below such levels. i. Commercial Paper rated by at least two of Standard and Poor s, Moody s and Fitch and not less than A-1/P-1/F-1 by Standard & Poor s, Moody s and Fitch, respectively. [2]

173 j. Corporate Bonds rated Aa3/AA- or better by Moody s and S&P. k. Asset-Backed Securities rated AAA by Moody s and S&P. l. Repurchase agreements with banks or primary government dealers reporting to the Federal Reserve Bank of New York ( Repurchasers ), collateralized by investments with a minimum 102% valuation in securities described above in paragraphs 1, 5 and 6. m. Share or Certificates in any short-term investment fund that invests not less than 90% of its assets in obligations described in (1) or (2) above. 2. Diversification 3. Quality a. No limitations are placed on Investments carrying the full faith and credit of the U.S. Government, including repurchase agreements collateralized by such investments. b. Investments in any single Federal Agency not carrying the Full Faith and Credit of the U.S. Government are limited to 35% of the Portfolio. c. Investments in Certificates of Deposit or Investment Agreements in total are limited to 30% of the Portfolio. d. The combined exposure to Commercial Paper, Corporate Bonds and Asset- Backed Securities is limited to 35% of the total Portfolio. e. Investments in any one single issuer (excluding U. S. Treasury and Federal Agency securities) are limited to 5% of the Portfolio. All Investments shall be made with judgment and care, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of capital as well as the probable income to be derived. All investment ratings shall be based on security ratings at the time of purchase. In the event of a downgrade in rating, the Portfolio Manager is to discuss such downgrade as soon as possible with the Chief Financial Officer or his designee with a recommendation on whether to sell or hold. The portfolio s average credit quality should be rated Aa3/AA- or better by Moody s / S&P. [3]

174 4. Maturity At the time of purchase, the maturity of each security in the Portfolio may not exceed five (5) years, taking into account any call, put, prepayment, or other features that may impact maturity. Similarly, the weighted average life of mortgages and asset-backed securities may not be more than 5 years. 5. Turnover The Portfolio Managers shall follow a semi-active approach to investment management whereby investments are generally purchased with the intent of holding to maturity, but the Portfolio Managers have the flexibility to restructure and rebalance portfolio holdings to manage risk and take advantage of market opportunities. D. PERFORMANCE BENCHMARK: The Portfolio Manager shall work with the Chief Financial Officer or his designee to develop appropriate benchmarks for the various funds invested by the Commission, and shall compare the returns of the individual Portfolio segments to such benchmarks. E. PERIODIC REVIEW: The Investment Policy Committee of the Commission shall prepare an investment report to the Commissioners on a quarterly basis, including a management summary that provides a clear picture of the status of the current investment portfolio and transactions made over the latest reporting period. Both Investment performance and conformity with this Investment Policy shall be reported. F. AMENDMENTS: This Investment Policy shall be reviewed annually by the Investment Policy Committee. Any amendments to the Investment Policy must be approved by the Commission. This Policy Letter supersedes all previous Policy Letters on this subject. [4]

175 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.03 APPROVAL DATE: EFFECTIVE DATE: Debt Management Finance and Administration REVISED DATE: A. Purpose: The purpose of this policy is to establish sound, prudent and appropriate parameters and to provide guidance governing the issuance, management, continuing evaluation of and reporting on all debt obligations issued by the Pennsylvania Turnpike Commission ( Commission ), and to provide for the preparation and implementation necessary to assure compliance and conformity with this policy. Recognizing the importance and value to the Commission s creditworthiness and marketability of the Commission s bonds, this policy is intended to ensure that any and all potential debt structures comply with all applicable laws and regulations, as well as sound financial principles. B. Policy Statement: Under the governance and guidance of its various Indentures, the Commission may periodically enter into debt obligations to finance the construction of infrastructure and other assets or to refinance existing debt for the purpose of meeting its responsibilities to users of the Turnpike. It is the Commission s desire and direction to assure that such debt obligations are issued and administered in such fashion as to obtain the best long-term financial advantage to the Commission. The Commission will limit long-term borrowing to fund capital improvements, projects, or equipment that cannot be financed from current financial resources. In an effort to maximize capital funding availability, the Commission shall utilize a reasonable mix of borrowing and pay-as-you-go funding. The Commission will not fund current operations or normal maintenance from the proceeds of long-term financing. The Commission shall seek to attain bond ratings so borrowing costs are minimized and access to credit is preserved. It is imperative that the Commission demonstrates to rating agencies, investment bankers, creditors and users of the Turnpike that Commission officials are following a prescribed financial plan and adhering to sound financial policy. The Commission will follow a practice of full disclosure by regularly communicating with bond rating agencies and Nationally Recognized Municipal Securities Information Repositions (NRMSR) to inform them of the Commission s current financial condition and future financial outlook. [1]

176 The Commission will strive to review this Debt Management Policy on an annual basis and update it on a timely basis as necessary. C. Uses: Bond proceeds are limited to financing the costs of planning, design, land acquisition, buildings, permanent structures, attached fixtures or equipment and rolling stock equipment. Acceptable uses of bond proceeds can be viewed as items that can be capitalized. Non-capital furnishings and supplies are not to be financed from bond proceeds. Refunding bond issues that are intended to restructure currently outstanding debt in order to reduce debt service costs are an acceptable use of bond proceeds. The Commission may use short-term borrowing to finance operating needs but only in the case of an extreme financial liquidity condition that is beyond its control or reasonable ability to forecast. D. Decision Analysis: The Ten Year Capital Plan ( Capital Plan ) is the process for identifying both short and long-term needs, establishing priorities, examining long-range financial implications and the overall effectiveness of funding such long term needs with debt. The Capital Plan will be prepared on an annual basis and will list each project and its priority, its estimated cost and proposed funding source. The Commission will measure the impact of total debt service requirements including both outstanding and proposed debt obligations on one, five, ten and thirty-year periods. This analysis will include debt service maturities and payment patterns. The Commission will use the services of qualified internal staff and external advisors to assist in the analysis, evaluation, and decision process. In addition to debt analysis, the decision process may include financial, government and economic reviews. For example, potential funding streams may be identified and their respective financial and legal impacts assessed versus various alternatives. E. Specific Debt Policies, Ratios and Measurement This section of the Debt Management Policy establishes guidance for target debt policies, ratios and measurements for the Commission in the following categories: A. Constraints, Ratios and Measurements B. Measurements of Future Flexibility A. Constraints, Ratios and Measures The following constraints, ratios and measures shall govern the issuance and administration of debt obligations: [2]

177 1. Purposes of Issuance - The Commission will issue debt obligations for acquiring, constructing, reconstructing or renovating Capital Improvements or for refinancing existing debt obligations for any other permitted purpose. The Commission may also issue debt to meet its obligations under Act 44 of Maximum Maturity - All debt obligations shall have a maximum maturity of the earlier of: (i) the estimated useful life of the Capital Improvements being financed; or, (ii) thirty years (unless a longer term is recommended by external advisors): or, (iii), in the event they are being issued to refinance outstanding debt obligations, the final maturity of the existing debt obligations being refinanced, or the latest estimate of the useful life of the capital improvements originally financed with the refunded bonds. 3. Annual Debt Service - The Commission will strive to structure debt issues to maintain a level or declining overall annual debt service structure. 4. Variable Rate Debt The Commission will strive to maintain unhedged variable rate debt levels no greater than 25% of its total outstanding debt. On a periodic basis the Commission will reassess its acceptable level of variable rate debt assets in order to maintain a relative balance that mitigates potential long-term interest rate risk exposure under conditions of either rising or declining market interest rates. 5. Present Value Savings The Commission shall continually monitor its outstanding debt for the purpose of determining if existing financial marketplace conditions afford the Commission the opportunity to refund existing issues and lessen debt service costs. In order to consider and favorably recommend the possible refunding of an issue, the Commission will generally look to attain at least a minimum acceptable threshold level of net Present Value (PV) savings over the life of the respective issue. 6. Bond Covenants and Laws - The Commission shall comply with all covenants and requirements of the bond resolutions, and state and federal laws authorizing and governing the issuance and administration of debt obligations. Further, the Commission shall consult with bond counsel regarding any such legal issues. 7. Rate Covenant as to Tolls for Traffic - The Commission covenants that at all times it will establish and maintain schedules of tolls for traffic over the system so that net revenues will be sufficient to provide funds for the greater of: a. 130% of annual debt service for such fiscal year on all applicable long-term indebtedness; or b. 100% of maximum annual debt service on all applicable long-term indebtedness, plus amounts of required transfers to Reserve Maintenance Fund and amounts to restore deficiencies in the Debt Service Reserve Fund; plus, in either such case, the amount of short-term indebtedness outstanding for more than a year. In addition, net revenue in excess of the sum of the amounts of (1) and (2) above, together with other [3]

178 revenues pledged to the payment of subordinated indebtedness, shall be sufficient to pay the annual debt service for any subordinated indebtedness. Capitalized terms used on this page are defined in the Commission s restated indenture for its toll revenue bonds. B. Measurements of Future Flexibility The Commission s future flexibility is governed through the following Indenture covenants and policies: 1. Limitations on Issuance of Additional Bonds The Commission agrees that it will not issue any additional bonds constituting long-term indebtedness unless the following conditions are met: a. Historical pro forma debt service coverage ratio for the most recent fiscal year was not less than b. Net revenues of the Commission during the preceding fiscal year were at least 130% of the maximum annual debt service and the projected debt service coverage ratio is not less than Structure of Additional Bonds - The Commission will attempt to structure bond issues with call provisions consistent with current market conditions and with a goal to maximize flexibility with future refunding opportunities. The Commission may use premium or discount bonds to enhance the marketing of the bonds and will analyze the cost in relation to future refunding opportunities and impact on debt service. Finally, the Commission may consider using capitalized interest only if there are budgetary constraints that need to be addressed by phasing in debt service impact. 3. Uncommitted General Fund Balance The Commission will adhere to its Liquidity Policy that requires minimum balances to be maintained at all times in the Reserve Maintenance Fund and General Reserve Fund. The Policy is specifically stated as follows: The Pennsylvania Turnpike Commission will budget and maintain a cumulative Fund Balance, including cash balances in both the Reserve Maintenance Fund and the General Fund, equal to the greater of either the annual debt service of bonds not secured by a Debt Service Reserve Fund or 10% of annual budgeted revenues. F. Sale of Bonds: The Commission shall choose the method of sale of its bonds (competitive versus negotiated) in light of financial and market conditions as well as considering an assessment of the different benefits associated with each method. The Commission shall require its financial advisor in conjunction with the senior underwriter(s) to prepare a marketing plan that includes recommended distribution rules (that will enhance the marketing effort), descriptions of similar transactions in the market place and their rates of interest, prevailing market information and any other financial information deemed relevant. [4]

179 G. Derivative Products: The Commission will consider the use of derivative products in connection with the overall debt plan as a means of reducing debt service costs, increasing flexibility, hedging interest rate risk and accessing different investor markets. Additionally, the Commission will strive to only use derivative products after an analysis of the economic benefit of the interest rate swap market in relation to traditional financing methods has been undertaken and indicates a significant financial economic benefit without excessive or unacceptable levels of risk. The Commission will comply with prevailing state law, if any, regarding the use of derivative products as well as certain disclosure requirements as specified by the Governmental Accounting Standard Board ( GASB ). The GASB recently issued GASB Technical Bulletin No in June 2003 that requires a governmental entity to provide additional disclosure of derivatives not reported at fair value on the statement of net assets. The Commission has decided to incorporate the technical bulletin requirements into its audited financial statements ending fiscal year May 31, The Commission has developed a separate Interest Rate Swap Policy. The policy addresses such issues as Scope and Authority, Conditions for the Use of Interest Rate Swaps, Interest Rate Swap Features, Evaluation, Management and Monitoring of Interest Rate Swap Risks and Selecting and Procuring Interest Rate Swaps. The Commission s policy and guidelines regarding Interest Rate Swaps are documented in the Commission s Interest Rate Swap Policy. H. Disclosure and Financial Reporting: The Commission will ensure that there is full and complete disclosure to rating agencies and other applicable regulatory bodies of all debt obligations. Offering documents for debt of the Commission shall also fully describe all outstanding debt as well all relevant information regarding the Commission and the particular financing transaction as required under federal securities law, subject to advice of bond counsel. The Commission will adhere to the guidelines for the financial reporting of debt obligations as recommended by the Government Accounting Standards Board ( GASB ) or any other applicable regulatory agency. [5]

180 POLICY POLICY SUBJECT: Procurement PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: Finance and Administration NUMBER: 7.04 APPROVAL DATE: EFFECTIVE DATE: REVISED DATE: A. PURPOSE: The purpose is to establish a policy governing the Procurement, management, control, and disposal of supplies and services. It seeks to ensure that: The need to enter into a contract has been demonstrated. Vendors are selected according to a defined process. The terms and conditions under which the services will be provided by the vendor are defined in a written contract. Contracts are created and executed in a consistent manner and in compliance with all Commission policies and procedures (e.g. Purchasing Manual, Professional Services Procurement Procedures) and with all other applicable laws especially those regarding ethics and avoiding conflicts of interest. Proper financial, legal and Commission reviews and approvals are conducted and obtained. Established contract administration procedures are followed to ensure the ability to monitor and view summary information. B. SCOPE: This Policy Letter applies to all agreements entered into by the Commission except for those involving construction and those agreements and memoranda of understanding under the Pennsylvania Public Employee Relations Act. C. GENERAL POLICY: In addition to complying with the Pennsylvania Procurement Code as well as statutes such as the State Ethics Act and the Adverse Interest Act, the Commission seeks to promote ethics in the procurement of supplies and services to avoid conflicts of interest; to provide training to Commission vendors regarding ethics and business conduct; and to develop processes for Commission employees and vendors to follow to avoid conflicts of interest. The Commission also seeks to retain the services of independent, outside professionals or consultants to provide [1]

181 expertise, especially in matters that are unique, infrequent, significant in size or scope, or where the Commission lacks sufficient expertise. D. DEFINITIONS: Contract - A contract is an agreement between the Commission and one or more parties, which creates, modifies or terminates a legal relationship. The legal relationship typically involves the creation of an obligation to do or not to do a particular thing. Procurement (Procuring) - Buying, purchasing, renting, leasing, licensing, or otherwise acquiring any supplies or services. The term also includes all functions that pertain to the obtaining of any supply or service, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration. E. PROCEDURES: 1. Commission employees seeking to initiate Procurement shall prepare or present documents (e.g. Validation Memo, Capital Plan Approval, Sole Source Form) explaining the need for the Procurement. Such Procurement documents shall indicate the recommended method of sourcing for the Procurement: Competition will occur through a method such as bidding, competitive sealed proposals (RFP), small procurement, or emergency procurement; Competition has occurred through cooperative purchasing; An exception to competition (i.e. sole source) has been demonstrated or documented; or An interagency or Intergovernmental agreement applies. Regarding Procurement through cooperative purchasing, the requester is required to demonstrate that the Commission business need for the supplies or services exists; to verify that competition occurred in the cooperative Procurement; to demonstrate the benefit of the cooperative Procurement for the Commission (e.g. why the cooperative Procurement outweighs the Commission issuing its own RFP); and to verify that the anticipated Commission contract is within scope of the cooperative Procurement. 2. The Commission shall add an independent, outside professional or consultant to advise or participate in the Procurement or in managing a project that is unique, infrequent, significant in size or scope, or where the Commission has insufficient expertise. These services shall include planning, Procuring, performing, or managing the work of the project including change orders or amendments. [2]

182 3. The independent, outside professional or consultant shall have the same authority as any Commission team members and shall have the authority to write, for consideration by the Commission, a separate report, recommendation, or concern. 4. Commission employees and any independent, outside professionals or consultants involved in Procurement review of bids or proposals shall be required to affirm, in writing, that they have no conflicts of interest, potential conflicts of interest, or direct financial interests in the firms competing for Commission business. In situations where Commission employees or any independent, outside professionals or consultants disclose a conflict, potential conflict, or financial interest, the Commission s Chief Compliance Officer will decide whether the conflict, potential conflict, or financial interest should disqualify the involved employee, professional, or consultant from participation in the pending Procurement. 5. Any vendors seeking to obtain business from the Commission shall receive training by the Compliance Department on the Commission Code of Conduct as well as annual refresher training (either of which may include an online version). Any potential vendors, through their duly authorized representatives, shall submit with their bids or proposals an affirmation that their authorized representatives have completed the training program(s), including any required refresher course, and agrees to comply with the Commission Code of Conduct. 6. All vendors (both those currently doing business with the Commission and those seeking to do business with the Commission) shall affirm in writing that no conflict of interest exists or shall disclose in writing that a conflict of interest exists. Such disclosures shall be reviewed by the Compliance Department or the Legal Department. 7. The Director of Procurement and Logistics, on behalf of the Manage Contracts Process Team, has the authority to develop processes and procedures and to create manuals to implement the provisions of this Policy Letter regarding purchasing and professional services. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

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187 Í Í Í Í Í Í Í Í Í Í = & # u & F F ž F & F?? $ " "? J >? > " " $ " " > "?! $ K? $ " " Ÿ ª «± «² ³ ² µ µ ¹ µ µ ³ µ º µ» ¼ ½ ¾ À» ½ À ¾ Á ¾  û Ä À Å ¼ Æ ¼ ½»» À» Ä ¼ à ¼» ¼ ½ ½ ¼ ¼ Á à ¼» ¼» À Á à à ¼» Ç» À À Ç Ç ½  à  ¾ ¼» À ½ ¾ ¾ ¼ ¾» Å Á È Ä Ä Å Ä ¾ ¾ ¼ û ¼ ¾ É Ê ¼ ½ ¼ Æ À ½» ¼ û À» Ä ¼ Ë Å Æ ¼» À ½ Ì ¼ ¼ ½ ¾ À Ç» Ä ¼ À Å Å À À ½» À» Ä ¼ Ä ¼ Ç Ÿ ¼ » Î ¼ Ï Ç Ç ¼ ½ À ½ Ä ¼ Ç Ï Æ ¼ ½» Ï Ç Ç ¼ ½ Á Ç Æ Æ ¾ Ê ¾ ¼ Á Ç À ½ Î ¼ Å»» À Ð Ñ ¼ Î ¼ È» Ä ¼ Å É Å» ¼ Å ¼ Å» Ê ¾ Å Ä ¼ û À ¼ Å Â ½ ¼ À Æ ¾ ¼ È» Ä» Ä À Å ¼ Æ À ¾ ¼ Å Á Æ ¾ Å Á Æ ½ À ¼ à  ½ ¼ Å Á ¾ È Å Á à ½ ¼  ¾» À Å Á È Ä Ä À  ¾ Ã Ä Î ¼ Å Ç» Æ» À À Æ ¼ ½» À Å Ã ½ ¼ Æ À ½» Å Á à à ¼» ¼ ½ È Ä ¼» Ä ¼ ½» Ä ¼ À ½ Ò» À Å À Æ ¾ ¼ Ð Ñ ¼ Î ¼ È» Ä ¼ ¼ Å À Ç Å Ç ¼  ½ à ŠŠ¼» Å Ã Á Å Æ Æ ½ À Æ ½» ¼ Á Î ¼ ½ Ç É» Ä ¼ ¼ Å» ¼ ¼ À Ç Å Â Ä Å Å ¼» Å Ð Ñ ¼ Î ¼ È À Æ ¼ ½» À Å À ½ Æ ½ À ½ Å» À Å ¼ ½» È Ä ¼» Ä ¼ ½ ½ ¼ Å Â ¾» Å ½ ¼ À Å Å» ¼» È» Ä ¼ Å» Ê ¾ Å Ä ¼ à À Ê Ó ¼» Î ¼ Å Ã À ¾ Å Ã È Ä ¼» Ä ¼ ½» Ä ¼ À Æ ¼ ½» À Å À ½ Æ ½ À ½ Å ½ ¼ Ê ¼ ½ ½ ¼ à À » Å Æ ¾ ¼ à РÀ À ½ û» ¼ ½ ¾  û» λ ¼ Å È» Ä» Ä ¼ È À ½ Ô À Ç» Ä ¼ à ¼ Æ ¼ à ¼» ¼» ¼ ½ ¾  û À ½ Å Ã Å Å Å»» Ä ¼ ¼» ¼ ½ ¾  û À ½ Å Å ½ ¼ Õ Â ½ ¼ Ã Ð Ë ¼ ¼»» Å ½ ¼ Å Æ À Å Ê ¾» ¼ Å Á» ¼ ½ ¾  û À ½ Å Å Ä ¾ ¾ À Æ ¾ É È» Ä» Ä ¼ À à ¼ À Ç Ÿ» Ä Å Ã» Ä ¼ Ö» à ½ Ã Å Ç À ½» Ä ¼ ½ À Ç ¼ Å Å À ¾ ½» ¼ À Ç Ë» ¼ ½ ¾ Ø Â Ã» Æ ½ À  ¾» ¼ Ã Ê É Ù Ä ¼ Ë Å»» » ¼ À Ç Ë» ¼ ½ ¾ Ø Â Ã» À ½ Å Á Ë Ð Á Å È ¼ ¾ ¾ Å À» Ä ¼ ½ Æ ½ À Ç ¼ Å Å À ¾  û Å» à ½ à ŠÁ È Ä Ä É Ê ¼ Æ Æ ¾ Ê ¾ ¼» À» Ä ¼ Æ ¼ ½ Ç À ½ ¼ À Ç» Ä ¼ ½ È À ½ Ô Å Å ¼» Å Ð À  ½ ½ ¼ ¼ Ú Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Ñ À ¼ ½ Ÿ Ð Ü Â»» Í Ä ¼ Ç Ÿ ¼ » Î ¼ Ï Ç Ç ¼ ½ Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û ½ Ñ Ð Ö Ä Â ¼ É Ä ¼ Ç Ï Æ ¼ ½» Ï Ç Ç ¼ ½ Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Û Ø Â Ã» À»» ¼ ¼ Ä ½

188 Í Í Í á á ó Í Í á Í Í ó Ý Í Í Í Í Í ß à Í Í Í Í Í Í Í Í Í Í Í Í Ë Ð Â ½ Æ À Å ¼ â º ³ â «â µ ã «ä º º å æ ä º º ç è é µ ³ ª «â ê ä º º µ µ å æ ä º º µ µ ç è µ µ µ µ ä º º µ µ µ «ª ª ª µ µ â µ ë ª µ å ì è «³ ä º º µ µ ¹ µ Ç ¾ Å»» ¼ ¼» Å Á í à î» Ä ¼ Õ Â ¾ Ç» À Å Á à ¼ Æ ¼ à ¼ ¼ Ã Æ ¼ ½ Ç À ½ ¼ À Ç» Ä ¼ ä º º µ µ ¹ µ ï ª «ð å ñ è ± «² ³ ² µ µ ä º º µ µ ¹ µ ² ² «ð «² ª â â ² µ µ µ ð å ò è ä º º µ µ ¹ µ ² º â ª ² â ª µ 𠫪 µ «ª µ ð å ô è ä º º µ µ ¹ µ µ µ µ µ º À Ç ½ Å Ô Å» Ä» Ä»» ¼ ½ ¾ ¾ É Ç Ç ¼»» Å Ç ¾ À û À Ð Ø ¾» Ä À  Ļ Ä ¼ À»» ¼ ¼ Ä Å» Ä ¼ » Ä À ½» É Ã ½ ¼ Å Æ À Å Ê ¾» ¼ Å Å ¼» Ç À ½» Ä» Ä Å Ä ½» ¼ ½ Á» Ä ¼ Æ ½ ½ É ½ À ¾ ¼ À Ç» Ä ¼ À»» ¼ ¼ Å À Î ¼ ½ Å Ä» Ð Ë» Å À»» Ä ¼ à » É À Ç» Ä ¼ À»» ¼ ¼» À À à »  û Å Á º ã «³ ¹ µ ² ª µ º µ ² º â ª  ½» ¼ à À ½ à ¼ È» Ä ¼ ¼ ½ ¾ ¼ Æ» ¼ à À » Å» à ½ à ŠÁ À ½» À À» Ä ¼ ½ È Å ¼ Å Å Â ½ ¼ À Æ ¾ ¼ È» Ä Æ ¼ ½» ¼» ¾ È Å Á ½  ¾ ¼ Å Ã ½ ¼  ¾» À Å Ð Ù Ä ¼ Å ¼ ½ ¼» Ä ¼ ½ ¼ Å Æ À Å Ê ¾» ¼ Å À Ç í î ¼ ¼» Á È Ä Ä Ç À ½ Æ Â ½ Æ À Å ¼ Å À Ç» Ä Å Ä ½» ¼ ½ ¾  à ¼ Å» Ä ¼ Ä ¼ Ç Ÿ ¼ » Î ¼ Ï Ç Ç ¼ ½ û Ä ¼ Ä ¼ Ç Ï Æ ¼ ½» Ï Ç Ç ¼ ½ Á À Å Å À À  Š¼ ¾ Á» Ä ¼ à ½ ¼» À ½ Å À Ç ª ª õ «ã «ö â µ õ ó â º µ ø å ù è ä º º µ µ ¹ µ ¼» ¼ ½ ¾  û À ½ Ð Ë Ë Ð Ø Â» Ä À ½» É Ë Ã Å Ä ½» Å À Î ¼ ½ Å Ä» ½ À ¾ ¼ Á» Ä ¼ À»» ¼ ¼ Å ¼ Æ À È ¼ ½ ¼ û À Ú Ë Ë Ë Ð õ ² º º ä º º µ µ µ µ ª ² ä º º µ µ ¹ µ ï ª «ð À Å Ã ¼ ½ Õ Â ¾ Ç» À Å Á à ¼ Æ ¼ à ¼ ¼ Ã Å Ä ¼ à  ¾ ¼ À Ç Ç ¼ ¼ Å Ã À Æ ¼ Å» À Ð À à » À ½ » Ä À ½ Ò ¼ ¼» À Å Ã ¼ Î ¾ » À Å Ã ½ ¼ Ç ¼ ½» À» Ä ¼ Ë Å Æ ¼» À ½ Ì ¼ ¼ ½ ¾ É»» ¼ ½ ¾ ¾ Ç À ½ Î ¼ Å»» À» À É»» ¼ ½ Å È» Ä» Å Å À Æ ¼ À Ç ½ ¼ Å Æ À Å Ê ¾» É Ð Ñ ¼» à ¼ Æ ¼ à ¼» À  Š¼ ¾ Á À »» Å Á À ½ À» Ä ¼ ½ Å» À à ΠŠ¼» Ä ¼ À»» ¼ ¼ À ½ Å Å Å»»» Ä ¼ Æ ¼ ½ Ç À ½ ¼ À Ç» Šà » ¼ Å Ð Ñ ¼ Õ Â ¼ Å»» Ä ¼»» ¼ à ¼ À Ç É À Ç Ç ¼ ½ À ½ ¼ Æ ¾ À É ¼ ¼ À Ç» Ä ¼ À Å Å À» É ¼ ¼» À Ç» Ä ¼ À»» ¼ ¼ À ½ È» Ä É ¼ Ê ¼ ½ Å À Ç Á À ½ à ΠŠÀ ½ Å» À Á» Ä ¼ À»» ¼ ¼ Ð ú À ½ à à ¼ ¾ ¼» ¼ » Ä À ½» É» À Å Â Ê À»» ¼ ¼ Å À Å Å» À Ç À ¼ À ½ À ½ ¼ ¼ Ê ¼ ½ Å» À Æ ¼ ½ Ç À ½ Å Â Ä Ã Â» ¼ Å Ã ½ ¼ Å Æ À Å Ê ¾» ¼ Å Â Ã ¼ ½» Ä Å Ä ½» ¼ ½ Å» Ä ¼ À»» ¼ ¼ É Ã ¼ ¼ Æ Æ ½ À Æ ½» ¼ Ð À Æ À Å» À Ù Ä ¼ Ø Â Ã» À»» ¼ ¼ Å Ä ¾ ¾ Ê ¼ À Æ ½ Å ¼ à À Ç» Ä ½ ¼ ¼ À ½ À ½ ¼ À Å Å À ¼ ½ Å Á ¼ Ä À Ç È Ä À Å Ä ¾ ¾ Ê ¼ à ¼ Æ ¼ à ¼» Ð Ø ¼ Ê ¼ ½ À Ç» Ä ¼ À»» ¼ ¼ Å Ä ¾ ¾ À» Ê ¼ à ¼ ¼ ¼ à à ¼ Æ ¼ à ¼» Ç» Ä ¼ ¼ Ê ¼ ½ Á à ½ ¼» ¾ É À ½ à ½ ¼» ¾ É Á Ä Å» ¼ ½ ¾ ½ ¼ ¾» À Å Ä Æ È» Ä» Ä ¼ À Å Å À» Ä» Á» Ä ¼ À Æ À À Ç» Ä ¼ À Å Å À ¼ ½ Å Á È À  ¾ û ¼ ½ Ç ¼ ½ ¼ È» Ä» Ä ¼ ¼ ¼ ½ Å ¼ À Ç Ã ¼ Æ ¼ à ¼» Ó Â Ã ¼» Å ¼ Ê ¼ ½ À Ç» Ä ¼ À»» ¼ ¼ Ð Ø ¾ ¾ ¼ Ê ¼ ½ Å À Ç» Ä ¼ À»» ¼ ¼ Å Ä ¾ ¾ Ä Î ¼ È À ½ Ô Ç ¾ ½» É È» Ä Ê Å Ç ¼ Ý Þ ß À Ç à

189 Í Í Í Í Í Í Í Í ß à Í Í Í Í Í Í Ã À » Æ ½» ¼ Å Á û ¾ ¼ Å» À ¼ ¼ Ê ¼ ½ À Ç» Ä ¼ ½ ¼ ¾» ¼ Ã Ç ¾ ¼ ¼» ¼ Æ ¼ ½» Å ¼ Ð À»» ¼ ¼ Å Ä ¾ ¾ Ä Î ¼ À » À ½ Ë ü Ð Ö» ½ »  ½ ¼ à ½ À ¼ Å Å ¼ Å ý þ þ ÿ ÿ þ ÿ À Å Å À û Ä ¼ Ä ½ Æ ¼ ½ Å À À Ç» Ä ¼ Ù Ä ¼ À»» ¼ ¼ ¼ Ê ¼ ½ Å Å Ä ¾ ¾ Ê ¼ Æ Æ À» ¼ Ã Ê É» Ä ¼ À»» ¼ ¼ Å Ä ¾ ¾ Ê ¼ ¼ ¾ ¼» ¼ Ã Ê É» Ä ¼ À»» ¼ ¼ ¼ Ê ¼ ½ Å Ð Ù Ä ¼ À»» ¼ ¼ Å Ä ¾ ¾ ¼ ¼»» ¾ ¼ Å»» È ¼  ¾ ¾ É Á À ½ À ½ ¼ Ç ½ ¼ Õ Â ¼» ¾ É Å ½  Ż ¼ Šû» ¼ Ð Ù Ä ¼ À»» ¼ ¼ Å Ä ¾ ¾ Æ ¼ ½ À à ¾ ¾ É Ä À ¾ à ¼ ¼ » Î ¼ Å ¼ Å Å À Å È» Ä ¼ ¼»» Ä ¼» ¼ ½ ¾  û À ½ À ½» Ä ¼ ¼» ¼ ½ ¾  û À ½» À à Š ŠŠɻ» ¼ ½ Å» Ä»» Ä ¼ À»» ¼ ¼ Á ¼ ¼» À ½» Ä ¼  û À ½ Å Ê ¼ ¾ ¼ Î ¼ Å Ä À  ¾ Ã Ê ¼ à Š ŠŠ¼ Ã Æ ½ λ ¼ ¾ É Ð ¼ ¼» ¼ û ¼ Å È ¾ ¾ Ê ¼ Æ ½ À Æ À Å ¼ Ã Ê É Å» Ç Ç Á à Š ʻ» ¼ Ã Ê É» Ä ¼ Ä ¼ Ç Ï Æ ¼ ½» Ï Ç Ç ¼ ½» À ¼ Ê ¼ ½ Å À Ç» Ä ¼ À»» ¼ ¼ à Π¼ À Ç ¼ Ä ¼ ¼» Á ¾ À È» Ä Æ Æ ½ À Æ ½» ¼ Ê ½ ¼ Ç» ¼ ½ ¾ ŠР» ¼ Å È ¾ ¾ Ê ¼ Ô ¼ Æ» Ê É ¼ Ê ¼ ½ À Ç» Ä ¼ À»» ¼ ¼ À ½ Æ ¼ ½ Å À à ¼ Å» ¼ Ã Ê É» Ä ¼ À»» ¼ ¼» À à À Å À л λ ¼ Å Ð ü Ð Ñ ¼ Å Æ À Å Ê ¾» ¼ Å Ù Ä ¼ À»» ¼ ¼ É Ã À Æ» ½  ¾ ¼ Å Ã Â Ã ¼ ¾ ¼ Å Ç À ½» Å ¼ ¼» Å Ã À» Ä ¼ ½ Ù Ä ¼ À»» ¼ ¼ È ¾ ¾ ½ ½ É À »» Ä ¼ Ç À ¾ ¾ À È ½ ¼ Å Æ À Å Ê ¾» ¼ Å Ú Ñ ¼ Î ¼ È Ã Ã Å Â Å Å È» Ä ¼ ¼» û Ä ¼ ¼» ¼ ½ ¾  û À ½» Ä ¼  ¾ Ç ¾ Å»» ¼ ¼» Å Ð Å Â Å Å Å Ç» À » à ½ ¼ Æ À ½» Å Å Â ¼ Å ¾  à À Æ ¾ ¼ À ½   Š ¾» ½ Å» À Å Ð Ñ ¼ À ¼ û Ä ¼ Å ¼ ¾ ¼» À À Ç» Ä ¼ ¼» ¼ ½ ¾  û À ½ Ã Æ Æ ½ À Î ¾ À Ç» Ä ¼ Ç ¼ ¼ Å Ã À» Ä ¼ ½ À Æ ¼ Å» À» À Ê ¼ Æ Ã» À» Ä ¼ ¼» ¼ ½ ¾  û À ½ Ð ½ ¼ Æ Æ ½ À Î ¼ ¾ ¾  û à À  û Å ¼ ½ Î ¼ Å» À Ê ¼ Æ ¼ ½ Ç À ½ ¼ Ã Ê É» Ä ¼ ¼» ¼ ½ ¾  û À ½ Ð Ñ ¼ Î ¼ È» Ä ¼ Æ ¼ ½ Ç À ½ ¼ À Ç» Ä ¼ ¼» ¼ ½ ¾  û À ½ à ½ ¼ À ¼ û Ä ¼ ½ ¼ Æ ¾ ¼ ¼» À ½ Ã Å Ä ½ ¼ À Ç» Ä ¼ ¼» ¼ ½ ¾  û À ½ Á Ç ¼ ¼ Å Å ½ É Ð ¼ ¼» È» Ä» Ä ¼ ¼» ¼ ½ ¾  û À ½» À à Š ŠŻ Ä ¼ Æ ½ À Æ À Å ¼ à  û Æ ¾ Á Å À Æ ¼ Á Å» Ç Ç Ã Æ Æ ½ À Ä Á ¾  à À À ½ û À À Ç» Å ¼ Ç Ç À ½» È» Ä» Ä ¼» ¼ ½ ¾  û À ½ Ð Ï Ê» à ½ ¼ Î ¼ È ½ ¼ Æ À ½» Ç ½ À» Ä ¼ ¼» ¼ ½ ¾  û À ½ ½ ¼ ½ û Å Õ Â ¾» É À» ½ À ¾ Æ ½ À ¼ à  ½ ¼ Å Á û ¼ ½ ¾ Å Å Â ¼ Å ½ Å ¼ Ã Ê É» Ä ¼ À Å» ½ ¼ ¼»» ¼ ½ ¾ Õ Â ¾» É À» ½ À ¾ ½ ¼ Î ¼ È Á À ½ Æ ¼ ¼ ½ ½ ¼ Î ¼ È Á À Ç» Ä ¼ Ç ½ À ½ Ê É É Õ Â ½ É À ½ Î ¼ Å»» À Ê É À Î ¼ ½ ¼» ¾ À ½ Æ ½ À Ç ¼ Å Å À ¾ » Ä À ½» ¼ Å È» Ä» Ä ¼ Æ ½ ¼ ¼ Ã Ç Î ¼ É ¼ ½ Å Ã É Å» ¼ Æ Å» Ô ¼» À à ¼ ¾ È» Ä É Å Â Ä Å Å Â ¼ Å Ð Ï Ê» à ½ ¼ Î ¼ È Ç À ½ ¾ È ½»» ¼ Å»» ¼ ¼» Ç ½ À» Ä ¼ ¼» ¼ ½ ¾  û À ½ à ¼ ¾ ¼» ¾ ¾ ½ ¼ ¾» À Å Ä Æ Å Ê ¼» È ¼ ¼» Ä ¼ ¼» ¼ ½ ¾  û À ½ û Ä ¼ À Å Å À» Ä» É Æ»» Ä ¼ À Ê Ó ¼» λ É Ã Ã ¼ Æ ¼ à ¼ ¼ À Ç» Ä ¼ ¼» ¼ ½ ¾  û À ½ Ð Å Â Å Å È» Ä» Ä ¼ ¼» ¼ ½ ¾  û À ½ É Ã Å ¾ À Å ¼ à ½ ¼ ¾» À Å Ä Æ Å Ã» Ô ¼ Æ Æ ½ À Æ ½» ¼» À» À Å» Å Ç É» Å ¼ ¾ Ç Å» À» Ä ¼ à ¼ Æ ¼ à ¼ ¼ À Ç» Ä ¼ ¼» ¼ ½ ¾  û À ½ Ð Ý ß û À Ç à

190 Í Í ó ó Í Í Í ß à Í Í Í Í Í Í Ñ ¼ Î ¼ È È» Ä ¼ ¼» û Ä ¼ ¼» ¼ ½ ¾  û À ½» Ä ¼ ½ ¼ Å Â ¾» Å À Ç» Ä ¼  û Á ¾ Â Ã É Ã Ç Ç Â ¾» ¼ Å ¼ À » ¼ ½ ¼ û Ä ¼ À  ½ Å ¼ À Ç» Ä ¼  û È À ½ Ô Á É ½ ¼ Å» ½» À Å À» Ä ¼ Å À Æ ¼ À Ç» Ä ¼» λ ¼ Å À ½ ¼ Å Å» À ½ ¼ Õ Â ¼ Å» ¼ Ã Ç À ½» À Ã É Å Ç» à Š½ ¼ ¼ ¼» Å È» Ä ¼ ¼» Ð Å Â Å Å È» Ä» Ä ¼» ¼ ½ ¾  û À ½ à ¼» ¼ ½ ¾  û À ½» Ä ¼ Å À Æ ¼ À Ç» Ä ¼ ½ ½ ¼ Î ¼ È Å À Ç» ¼ ½ ¾ À» ½ À ¾ À Î ¼ ½ Ç ¾ ½ ¼ Æ À ½» Á ¾  à À» ½ À ¾ Å À Î ¼ ½ Ç À ½» À» ¼ Ä À ¾ À É Ã Å ¼  ½» É À» ½ À ¾ Á à À Ê» ½ ¼ Æ À ½» Å À Å Ç» Ç Ã Å Ã ½ ¼ À ¼ û À Å Á» À ¼» Ä ¼ ½ È» Ä º º ¹ µ µ â µ µ Ñ ¼ Î ¼ È È» Ä ¼ ¼» Á» Ä ¼» ¼ ½ ¾  û À ½ û Ä ¼ ï ª «ä º º µ µ ¹ µ À » Á  û Ã Ç ¾ ½ ¼ Æ À ½» Æ ½ À ¼ Å Å ¼ Å Á ¾  û Ä ¼ Æ ¾ Å Á» λ ¼ Å Á Å» Ç Ç Ã À ½ Ò» À ¾ Å» ½ »  ½ ¼ À Ç» Ä ¼ Ù À ¾ ¾ Ñ ¼ Î ¼  ¼ Ø Â Ã» Ã Ï Æ ¼ ½» À Å Ñ ¼ Î ¼ È ¼ Æ ½» ¼» Å Ð Ï Ê» ½ ¼  ¾ ½ Â Æ Ã» ¼ Å Ç ½ À ¼ ¼» à À Å Å À À  Š¼ ¾ ½ ¼ ½ à À Æ ¾ ¼»» ¼ ½ Å Ã ¾ ¼ ¾»» ¼ ½ Å» Ä» É Ä Î ¼ Å Ç» Æ» À» Ä ¼ Ç ¾ Å»» ¼ ¼» Å Ð Ÿ Å» Ê ¾ Å Ä Ã ½ ¼ Î ¼ È Æ ½ À ¼ à  ½ ¼ Å Ç À ½» Ä ¼ ½ ¼ ¼ Æ» Á ½ ¼» ¼» À û ½ ¼» ¼» À Ç À Æ ¾» Å ½ ¼ ¼ Î ¼ Ã Ê É» Ä ¼ À Å Å À ½ ¼ ½ à À » À ½  û»» ¼ ½ Å Á û Ä ¼ À Ç Ã ¼» ¾ Á À É À Â Å Å Â Ê Å Å À Ê É ¼ Æ ¾ À É ¼ ¼ Å À Ç À ¼ ½ Å ½ ¼ ½ Ã Õ Â ¼ Å» À Ê ¾ ¼ À » À ½  û»» ¼ ½ Å Ð õ º º ä º º µ µ ¹ µ º µ ê ï â µ «µ µ â µ º º Ä Å» Ô ¼» À À» À ½ à À» ½ À ¾ Å Â Ä ¼ Æ À Å Â ½ ¼ Å Ð Ÿ Å» Ê ¾ Å Ä Á ½ ¼ Î ¼ È Ã Â Æ Ã» ¼ Æ ¼ ½ À à ¾ ¾ É À à ¼ À Ç Ÿ» Ä ¾ À à » à ¼ Å Â ½ ¼» Ä» ¼ ¼» Ä Å ¼ Å» Ê ¾ Å Ä ¼ Ã Å É Å» ¼» À à Ż ½ Ê Â» ¼ û À ¼ Ç À ½ ¼» Ä Å À à ¼ Ð Ñ ¼ Æ À ½» ½ ¼  ¾ ½ ¾ É» À» Ä ¼» Ä ¼ À»» ¼ ¼ Ð Ñ ¼ Î ¼ È Ã Â Æ Ã» ¼» Ä Å À Å Å À ¼ ½ Å ½ ¼ ½ à ŠŠ ¼ Å ½ Å Ê ¼ Ç À ½ ¼ Á û À Å» Ô ¼ Ê É Á Ä ½» ¼ ½ Æ ¼ ½ À à ¾ ¾ É ¼ ½ Ç À ½ É À» Ä ¼ ½» λ ¼ Å À Å Å» ¼» È» Ä» Ä Å À Å Å À ¼ ½ Å Ã ¼ ¼ ¼ ¼ Å Å ½ É À ½ Æ Æ ½ À Æ ½» ¼ Ð Å À û À Šû» ¼ Ð Ä ½» ¼ ½ Å» Ä ¼ À»» ¼ ¼ À ½» Ä ¼ Ý ß Ý À Ç à

191 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.06 APPROVAL DATE: EFFECTIVE DATE: Liquidity Standard Policy Treasury Management Department REVISED DATE: A. PURPOSE: The purpose of this policy is to ensure that the Pennsylvania Turnpike Commission will maintain minimum annual year-end fund balances for the ongoing level of uncommitted reserves necessary for the Commission to secure and protect its long-term debt. B. GENERAL POLICY: The Pennsylvania Turnpike Commission will budget and maintain a cumulative fund balance, including cash balances in the Reserve Maintenance Fund and the General Reserve Fund, equal to the greater of either the maximum annual debt service on all bonds not secured by a Debt Service Reserve Fund or 10% of annual budgeted revenues. This Policy Letter supersedes all previous Policy Letters on this subject. [1]

192 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.07 APPROVAL DATE: EFFECTIVE DATE: Interest Rate Swap Management Policy Finance and Administration REVISED DATE: I. PURPOSE: The purpose of the Interest Rate Swap Policy ( Policy ) of the Pennsylvania Turnpike Commission ( Commission ) is to establish guidelines for the use and management of all interest rate management agreements, including, but not limited to, interest rate swaps, swaptions, caps, collars and floors (collectively Swaps or Agreements ) incurred in connection with the incurrence of debt obligations as authorized by the Commission s Debt Policy (attached as Exhibit A). The Policy sets forth the manner of execution of Swaps and Agreements, provides for security and payment provisions, risk considerations, record keeping requirements and certain other relevant provisions as well as being responsive to (i) the 2003 recommended practices of the Government Finance Officers Association regarding the contents of an interest rate swap policy, (ii) swap market practices and Protocols (as defined herein) in response to the Dodd-Frank Act (as defined herein), other applicable laws relating to Swaps and related rules or regulations, including, without limitation, rules and regulations of the Commodity Futures Trading Commission (the CFTC ), the Securities and Exchange Commission (the SEC ) (i.e., relating to security-based swaps or mixed interest rate and security-based swaps) or the Municipal Securities Rulemaking Board (the MSRB ) and (iii) changes to, enhancements of, and deterioration in the swap market and its participants. The failure by the Commission to comply with any provision of this Policy shall not invalidate or impair any Swap or Agreement or the Commission s adherence to a swap industry Protocol (e.g., the International Swaps and Derivatives Association, Inc. ( ISDA ) August 2012 Dodd-Frank Protocol) or similar agreement (including, without limitation, any bilateral agreement with a Swap counterparty). II. SCOPE AND AUTHORITY: This Policy shall govern the Commission s use and management of all Swaps. This Policy describes the circumstances and methods by which Swaps will be evaluated, incurred, monitored, used, administered, managed and terminated, the guidelines to be employed when Swaps are used, and parties responsible for carrying out this Policy. While adherence to this Policy is required in applicable circumstances, the Commission recognizes that changes in the capital markets, agency programs, swap and financial market regulations and other unforeseen circumstances may from time to time produce situations that are not covered by the Policy and will require modifications or exceptions to achieve policy goals. [1]

193 The Chief Financial Officer and the Assistant Chief Financial Officer for Financial Management are the designated administrators of the Commission s Policy. The Chief Financial Officer shall have the day-to-day responsibility and authority for structuring, implementing, and managing Swaps. The Commission shall be authorized to enter into Swap transactions only with qualified Swap counterparties. The Commission, in consultation with the Chief Financial Officer, shall select the counterparties, in adherence with the criteria set forth in the Policy. III. CONDITIONS FOR THE USE OF SWAPS: A. General Usage: Due to the effects of continual innovation in the financial markets, this Policy recognizes that the reasons for, or desirability of, the use of Swaps may change over time. The Commission will use Swaps to hedge interest rate movement, basis risk and other risks, to lock-in a fixed rate or, alternatively, to create synthetic variable rate debt. Swaps may also be used to produce interest rate savings, limit or hedge variable rate payments, alter the pattern of debt service payments, manage exposure to changing market conditions in advance of anticipated bond issues (through the use of anticipatory hedging instruments) or for asset/liability matching purposes. B. Maximum Notional Amount: The Commission will limit the total notional amount of outstanding Swaps based on criteria set forth in this Policy regarding the proper management of risks, calculation of termination exposure, and development of a contingency plan. In no event, however, shall the Commission s exposure to any counterparty rated A/A- or lower exceed 50% of the Commission total debt. C. Impact of use of Liquidity: The Commission shall consider the impact of any variable rate bonds issued in combination with a Swap on the availability and cost of liquidity support for other Commission variable rate programs. D. Call Option Value Considerations: When considering the relative advantage of a Swap versus fixed rate bonds, the Commission will take into consideration the value of any call option on fixed rate bonds. E. Qualified Hedges: The Commission understands that, (1) if payments on and receipts from the Agreement are to be taken into account in computing the yield on the related bonds, the Agreement must meet the requirements for a qualified hedge under federal tax law (sometimes referred to as an integrated Swap); and (2) if one of the goals of entering into the Agreement is to convert variable yield bonds into fixed yield bonds (sometimes referred to as a super integrated swap ), then certain additional requirements must be met. In both of these [2]

194 situations, the terms of the Agreement and the process for entering into the Agreement must be reviewed and approved in advance by legal counsel. F. Evaluation of Swap Risks: Prior to the execution of any Swap transaction, the Chief Financial Officer, the Assistant Chief Financial Officer for Financial Management, and Commission s Swap Advisor and legal counsel shall evaluate the proposed transaction and report the findings. Such a review shall include the identification and evaluation of the proposed benefit and potential risks. Evaluation Methodology: The Commission will review the following areas of potential risk for new and existing Swaps: Type of Risk Description Evaluation Methodology Basic Risk The mismatch between actual variable rate debt service and variable rate indices used to determine Swap payments. The Commission will review historical trading differentials between the variable rate bonds and the index. Tax Risk Counterparty Risk Termination Risk Rollover Risk The risk created by potential tax events that could affect Swap payments. The failure of the counterparty to make required payments. The need to terminate the transaction in a market that dictates a termination payment by the issuer. The mismatch of the maturity of the Swap and the maturity of the underlying bonds. The Commission will review the tax events in proposed Swap agreements. The Commission will evaluate the impact of potential changes in tax law on LIBOR indexed Swaps. The Commission will monitor exposure levels, ratings thresholds, and collateralization requirements. The Commission will compute its termination exposure for all existing and proposed Swaps at market value and under a worst- case scenario. The Commission will determine, in accordance with its Debt Policy, its capacity to issue variable rate bonds that may be outstanding after the maturity of the Swap. [3]

195 Liquidity Risk Credit Risk The inability to continue or renew a liquidity facility. The occurrence of an event modifying the credit rating of the issuer or its counterparty. The Commission will evaluate the expected availability of liquidity support for swapped and unhedged variable rate debt. The Commission will monitor the ratings of its counterparties and insurers. IV. Prior to entering into any Protocol or similar agreement, the Chief Financial Officer, the Assistant Chief Financial Officer for Financial Management, and the Commission s Swap Advisor and legal counsel will evaluate prevailing market practices and requirements, legal requirements, the Protocol or similar agreement s impact on the efficiency of managing the Commission s Swaps, the Protocol or similar agreement s impact on communications with, and the receipt of information from, existing and potential Swap counterparties, and the extent of the need for, and the adequacy of, contractual or regulatory protections available to the Commission with respect to the Swaps to be covered by such Protocol or similar agreement. AWARD: The Swap must contain financial terms and conditions that are fair and reasonable to be evidenced in a letter from a qualified independent Swap Advisor that satisfies the requirement for a Qualified Independent Representative under CFTC Regulation implementing business conduct standards pursuant to the Dodd-Frank Act and any other applicable law relating to Swaps as described in Section VII.E. below. V. SWAP FEATURES: A. Swap Agreement: The Commission will use terms and conditions as set forth in the International Swap and Derivatives Association, Inc. ( ISDA ) Master Agreement and may use the ISDA August 2012 Dodd-Frank Protocol or such other documentation as the Commission, in consultation with its legal counsel and Swap Advisor, deems necessary in connection with meeting market requirements related to the swap provisions of the Dodd-Frank Act or other applicable laws relating to Swaps. The Swap agreement between the Commission and each counterparty shall include payment, term, security, collateral, default, remedy, termination, and other terms, conditions, provisions and safeguards as the Commission, in consultation with its legal counsel and Swap Advisor, deems necessary or desirable. Subject to the provisions contained herein, the terms of any Commission Swap agreement shall use the following guidelines: (i) (ii) Downgrade provisions triggering termination shall in no event be worse than those affecting the counterparty. Governing law for Swaps will be the State of New York. Issues relating to jurisdiction, venue, waiver of jury trial and sovereign immunity will be subject to [4]

196 prevailing law and approval of the Commonwealth Attorney General. Preference will be given to language providing that the counterparty will consent to jurisdiction in the Pennsylvania courts with respect to enforcement of the Agreement. (iii) (iv) (v) (vi) (vii) The specified indebtedness related to credit events in any Swap agreement should be narrowly defined and refer only to indebtedness of the Commission that could have a materially adverse effect on Commission s ability to perform its obligations under the Swap. Debt should typically only include obligations within the same lien as the Swap obligation. Collateral thresholds for the Swap provider should be set on a sliding scale reflective of credit ratings. Collateral requirements should be established and based upon the credit ratings of the Swap provider or guarantor. The Trustee or an independent third party or the counterparty if so directed should hold collateral. Eligible collateral should generally be limited to Treasuries and obligations of Federal Agencies where the principal and interest are guaranteed by the United States. The market value of the collateral shall be marked to market no less than Bi- Monthly. The Commission shall have the right to optionally terminate a swap agreement at market, at any time over the term of the agreement. Termination value should be set by second method and market quotation methodology, unless the Commission deems an alternate appropriate. B. Swap Counterparties: 1. Credit Criteria The Commission will make its best efforts to work with qualified Swap counterparties that have a general credit rating of: (i) at least A3 or A- by two of the nationally recognized rating agencies and not rated lower than A3 or A by any nationally recognized rating agency, or (ii) have a non-terminating AAA subsidiary as rated by at least one nationally recognized credit rating agency. The nationally recognized rating agencies are Moody s Investors Services, Inc., Standard and Poor s Rating Services, and Fitch Ratings. In addition to the rating criteria specified herein, the Commission will seek additional credit enhancement and safeguards in the form of: Contingent credit support or enhancement; i. Collateral consistent with the policies contained herein; ii. Ratings downgrade triggers; iii. Guaranty of parent, if any. In addition, qualified Swap counterparties must have a demonstrated record of successfully executing Swap transactions as well as creating and implementing innovative ideas in the Swap market. [5]

197 2. Counterparty Termination Exposure In order to manage the Commission s counterparty credit risk, and credit exposure to any one counterparty, the Commission will seek to avoid excessive concentration of exposure to a single counterparty or guarantor by diversifying its counterparty exposure over time. Exposure to any counterparty will be measured based on the aggregate termination value of all Swaps entered into with the counterparty. Termination value will be determined at least monthly, based on a mark-to-market calculation of the cost of terminating a Swap given the market conditions on the valuation date. Aggregate Swap termination value for each counterparty should take into account netting of offsetting transactions (i.e. fixed-to-floating and floating-to-fixed). C. Term and Notional Amount: For Swaps tied to an issued series of bonds, the term of the Swap agreement shall not extend beyond the final maturity date of the related bonds. The total net notional amount of all Swaps related to a bond issue should not exceed the amount of outstanding bonds. In calculating the net notional amount, netting credit shall be given to any Swaps that offset each other for a specific bond transaction. D. Security and Source of Repayment: The Commission may use the same security and source of repayment (pledged revenues) for Swaps as is used for the bonds that are hedged or carried by the Swap, if any, but shall consider the economic costs and benefits of subordinating the Commission s payments and/or termination payment under the Swap. The Commission shall consult with legal counsel regarding the legal requirements associated with making the payments under the Swap on a parity or non-parity basis with outstanding Commission debt. E. Prohibited Agreements: The Commission will not use Agreements that: i. Are speculative or create extraordinary leverage as risk; ii. Lack adequate liquidity to terminate without incurring a significant bid/ask spread; iii. Provide insufficient price transparency to allow reasonable valuation. VI. MANAGING ONGOING SWAP RISKS: A. Amendments, Modifications, Novations and Terminations: To permit the Commission to minimize risks, burdens or costs associated with, and to have the flexibility to manage the continuing obligations under, each Swap, and any related agreement necessary for the consummation of the transactions contemplated by each Swap (in each case, including without limitation, managing actual or expected collateral requirements, protecting against the risk of counterparty default, minimizing the risk of variations or increases in financing costs and ensuring compliance with applicable law), the Commission may enter into amendments, modifications or novations of, or optionally terminate, in whole or in part, any Swap or any Agreement based on the written advice of a [6]

198 Swap Advisor, that (a) the amendment, modification, novation or optional termination is (i) justified by the corresponding benefit to the Commission, and (ii) commercially reasonable based on then-current market conditions, and (b) any payments made or to be made by the counterparty to the Commission, or by the Commission to the counterparty, are fair value for such amendment, modification, novation or optional termination, given the credit of the counterparty and the terms and conditions of the amendment, modification, novation or optional termination. B. Swap Portfolio Review: 1. Annual Swap Report: The Assistant Chief Financial Officer for Financial Management, in consultation with the Commission s Swap Advisor and legal counsel, will evaluate the risks associated with outstanding Swaps at least annually and provide to the Senior Executives and the Commissioners a written report of the findings. This evaluation will include the following information: i. A description of all outstanding Swaps, including related bond series, types of Swaps, rates paid and received by Commission, existing notional amount, the average life and remaining term of each Swap agreement, and the current mark to market value of all outstanding Swaps. ii. Separately for each Swap, the actual debt service requirements versus the projected debt service on the Swap transaction; and for any Swaps used as part of a refunding, the actual cumulative savings versus the projected savings at the time the Swap was executed. iii. The credit rating of each Swap counterparty, parent, guarantor, and iv. credit enhancer insuring Swap payments, if any. Actual collateral posting by Swap counterparty, if any, per Swap agreement and in total by Swap counterparty. v. Information concerning any material event involving outstanding Swap agreements, including a default by a Swap counterparty, counterparty downgrade, or termination. vi. vii. An updated contingency plan to replace, or fund a termination payment in the event an outstanding Swap is terminated. The status of any liquidity support used in connection with Swaps, including the remaining term and current fee. The Assistant Chief Financial Officer for Financial Management shall review the Policy at least annually, and suggest revisions or updates as deemed appropriate. 2. Contingency Plan: The Assistant Chief Financial Officer for Financial Management, in consultation with the Commission s Swap Advisor and legal counsel, shall compute the mark to market exposure of each of its Swaps and its total Swap mark to market exposure at least annually and prepare a contingency plan to either replace the Swaps or fund the [7]

199 termination payments, if any, in the event one or more outstanding Swaps are terminated. The Assistant Chief Financial Officer for Financial Management shall assess the ability to obtain replacement Swaps and identify revenue sources to fund potential termination payments. The Assistant Chief Financial Officer for Financial Management shall also evaluate the economic costs and benefits of incorporating a provision into the Swap agreement that will allow the Commission to make termination payments over time. 3. Termination Matrix: The Assistant Chief Financial Officer for Financial Management, in consultation with the Commission s Swap Advisor and legal counsel, shall prepare a matrix for each individual Swap and for all Swaps in the aggregate setting forth the termination costs under various interest rate scenarios. C. Terminating Interest Rate Swaps: 1. Optional Termination: The Commission, in consultation with its Swap Advisor and legal counsel, may optionally terminate a Swap subject to complying with the requirements set forth in Section VI.A. above. 2. Termination Events: In the event a Swap is terminated or subject to termination as a result of a termination event, such as a default or a decrease in credit rating of either the Commission or the counterparty, the Assistant Chief Financial Officer for Financial Management, in consultation with the Commission s Swap Advisor and legal counsel, will evaluate whether to obtain a replacement swap, or, depending on market value, make or receive a termination payment subject to complying with the applicable requirements set forth in Section VI.A. above. In the event the Commission makes a Swap termination payment, the Commission shall attempt to follow the process identified in its Swap contingency plan. The determination of the value of any termination payment to be made or received by the Commission in connection with the mandatory termination of a Swap shall be reviewed and confirmed by the Commission s Swap Advisor. VII. SELECTING AND PROCURING INTEREST RATE SWAPS: A. Review of Proposals: Recommendations or proposals by counterparties to enter into Swaps, or to modify, amend, novate or terminate an existing Swap, shall be evaluated by the Commission and its Swap Advisor. Unless otherwise advised by a Swap Advisor, or reasonably determined by the Commission to be unnecessary or redundant, the Commission shall not waive delivery of any disclosure or analysis required of a prospective swap counterparty by applicable law. [8]

200 With respect to such recommendations or proposals, the following elements should be analyzed: (i) (ii) (iii) (iv) (v) (vi) (vii) The appropriateness of the Swap, or the modification, amendment, novation or optional termination of the existing Swap (for purposes hereof, the transaction ), for the Commission based on the balance of risks and rewards presented by the proposed transaction, including a detailed description of the transactional structure, a description of the risks it presents, and risk mitigation measures; The legal framework for the transaction within the context of Pennsylvania statutes, Commission ordinances, and relevant indenture and contractual requirements (including those contained in credit enhancement agreements), as well as any implications of the transaction under federal tax law; Potential effects that the transaction may have on the credit ratings of any Commission obligations assigned by the rating agencies; The potential impact of the transaction on any areas where the Commission s capacity is limited, now or in the future, including the use of variable-rate debt, bank liquidity facilities or letters of credit, and bond insurance; The ability of the Commission to handle any administrative burden that may be imposed by the transaction, including accounting and financial reporting requirements; Information reporting requirements, if any; and Other implications of the proposed transaction as warranted. Approval to enter into a transaction will be subject to appropriate legal authorization. The authorization will include the appropriate Commission officials to whom relevant authority is delegated to carry out the necessary steps to enter into, monitor and administer the transaction, and the parameters within which their delegated authority may be exercised. B. Financing Team: The Commission will use qualified legal counsel and retain the services of a qualified Swap Advisor for all Swaps. The Swap Advisor shall satisfy the requirements set forth below in VII.E. In addition, the Commission may retain the services of a qualified Financial Advisor for any Swap. C. Underwriter Selection: In the event bonds are issued in connection with Swaps, the Commission will price the bonds according to the guidelines set forth in its Debt Policy. D. Counterparty Selection: [9]

201 The Commission may use a competitive or a negotiated process to select a Swap counterparty and price a Swap as it believes business, market or competitive conditions justify such a process. The conditions under which a negotiated selection is best used are provided below: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Marketing of the Swap will require complex explanations about the security for repayment or credit quality. Demand is weak among swap counterparties. Market timing is important, such as for refundings. Coordination of multiple components of the financing is required. The Swap has non-standard features, such as one way collateral. Bond insurance is not available or not offered. The par amount for the transaction is significantly larger than normal. Counterparties are likely to demand individual changes in bid documents. Pricing transparency. E. Swap Advisor Selection Requirements and Ongoing Monitoring: Each Swap Advisor selected by the Commission shall meet the following requirements to be a Qualified Independent Representative pursuant to CFTC Regulation , subject to any amendments or interpretations by the CFTC and any comparable requirements set forth by other regulators, including, without limitation, the SEC or MSRB (collectively, the Qualified Independent Representative Requirements ). The Commission s Swap Advisor shall: (i) (ii) (iii) (iv) (v) (vi) have sufficient knowledge to evaluate the Swap transaction and risks; not be subject to a statutory disqualification (under the Commodity Exchange Act); be independent of the Commission s relevant Swap counterparty within the meaning of CFTC Regulation (c); undertake a duty to act in the best interests of the Commission; makes appropriate and timely disclosures to the Commission of compensation and all material conflicts of interest that would be sufficient to permit the Commission to assess the conflict and take steps to mitigate it; evaluate the fair pricing and the appropriateness of the Swap transaction; and [10]

202 (vii) be subject to restrictions on certain political contributions that may be imposed by the CFTC, the SEC, or a self-regulatory organization subject to jurisdiction of the CFTC or the SEC. The Commission s staff shall undertake on-going monitoring of each Swap Advisor s performance consistent with the Qualified Independent Representative Requirements. The Commission s staff shall determine at least annually that each Swap Advisor to the Commission reasonably appears to satisfy the Qualified Independent Representative Requirements. The Commission s staff shall also determine prior to any Swap transaction that the particular Swap Advisor or Advisors retained by the Commission in connection with such Swap transaction reasonably appear to satisfy the Qualified Independent Representative Requirements. In making the determinations described above in this paragraph, the Commission s staff may take into account any report or other documentation provided by the Swap Advisor regarding its satisfaction of the requirements in clauses (i) through (vii) above which report and other documentation shall be reviewed by the Commission s staff in consultation with legal counsel. In addition, the Commission shall require that each Swap Advisor to the Commission has written policies and procedures reasonably designed to ensure that such Swap Advisor satisfies the applicable requirements of the Qualified Independent Representative Requirements and that each Swap Advisor provide written representations to evidence compliance with such requirement. VIII. IX. DISCLOSURE AND FINANCIAL REPORTING: The Commission will ensure that there is full and complete disclosure of all Swaps to rating agencies, and in disclosure documents. Disclosure in marketing documents, including bond offering documents, shall provide a clear summary of the special risks involved with Swaps and any potential exposure to interest rate volatility or unusually large and rapid changes in market value. With respect to its financial statements, the Commission will adhere to the guidelines for the financial reporting of Swaps, as set forth by the Government Accounting Standards Board, the CFTC or other applicable regulatory agencies. RECORD KEEPING: The Commission shall obtain and maintain a legal entity identifier or such other entity identifier as shall be provided by the CFTC from time to time and shall maintain records for Swaps in accordance with legal requirements applicable from time to time including CFTC Final Rule Swap Data Recordkeeping and Reporting Requirements: Pre-Enactment and Transition Swaps, 77 Fed. Reg (June 12, 2012) and CFTC Final Rule Swap Data Recordkeeping and Reporting Requirements, 77 Fed. Reg (January 13, 2012). The Commission shall, at a minimum and subject to any future changes in law, keep full, complete and systematic records, together with all pertinent data and memoranda with respect to each Swap throughout the life of the Swap and for a period of at least five years following the final termination of the Swap in either electronic or paper form so long as the information is retrievable within five business days during the period during which it is required to be kept. The Commission shall maintain in such records any unique swap identifiers assigned by the Commission s Swap counterparties. [11]

203 X. DODD-FRANK ACT AND OTHER REGULATORY DEVELOPMENTS: The Chief Financial Officer and the Assistant Chief Financial Officer for Financial Management, in consultation with the Commission s Swap Advisor and legal counsel, shall monitor regulatory developments related to Swaps pursuant to the Dodd-Frank Act, other legislation relating to Swaps and related rules and regulations and market practices in response thereto. If determined to be necessary or advantageous in order for the Commission to maintain or improve communications with, or the receipt of information from, existing or potential Swap counterparties or to facilitate any Swap transactions, the Commission may enter into such Protocols or similar agreements relating to such regulatory developments. [12]

204 Glossary of Terms Asset/Liability Matching: Matching the term and amount of assets and liabilities in order to mitigate the impact of changes in interest rates. Bid/Ask Spread: The difference between the bid price (at which a market maker is willing to buy) and the ask price (at which a market maker is willing to sell). Call Option: The right to buy an underlying asset (e.g. a municipal bond) after a certain date and at a certain price. A call option is frequently embedded in a municipal bond, giving the issuer the right to buy, or redeem, the bonds at a certain price. Collateral: Assets pledged to secure an obligation. The assets are potentially subject to seizure in the event of default. Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as it may be amended. Downgrade: A negative change in credit ratings. Forward Starting Swap: Swaps that start at some time in the future. Used to lock-in current interest rates. Hedge: A transaction that reduces the interest rate risk of an underlying security. Interest Rate Swap: The exchange of interest rate payments between counterparties. ISDA August 2012 Dodd-Frank Protocol: ISDA s Protocol published on August 13, 2012 intended to address the CFTC Final Rule, Business Conduct Standards for Swap Dealers and Major Swap Participants With Counterparties, 77 Fed. Reg (February 17, 2012). Liquidity Support: An agreement by a bank to make payment on a variable rate security to assure investors that the security can be sold. LIBOR: The London Interbank Offer Rate. Used as an index to compute the variable rate on an interest rate swap. Notional Amount: The amount used to determine the interest payments on a swap. Offsetting Swap: Secondary interest rate Swap that is placed in an opposite direction from the primary interest rate Swap. The offsetting Swap is used to minimize Swap risks associated with the use of Swaps and potentially gain monetary value from the transaction. Protocol: A multilateral contractual amendment mechanism that allows for various standardized amendments to be deemed to be made to the relevant covered swap agreements between any two adhering parties. [13]

205 Termination Payment: A payment made by a counterparty that is required to terminate the Swap. The payment is commonly based on the market value of the Swap, which is computed using the rate on the initial Swap and the rate on a replacement Swap. This Policy Letter supersedes all previous Policy Letters on this subject. [14]

206 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.08 APPROVAL DATE: EFFECTIVE DATE: Retiree Medical Trustee Funding Policy Finance and Administration REVISED DATE: A. PURPOSE: The purpose is to establish a general policy for funding the Pennsylvania Turnpike Commission Retiree Medical Trust ("Trust") and to comply with GASB (Government Accounting Standards Board) Statement No. 45. B. GENERAL POLICY: The Commission established the Pennsylvania Turnpike Commission Retiree Medical Trust to provide retiree medical benefits through the use of an irrevocable trust that is taxexempt under Section 115 of the Internal Revenue Code. It is anticipated that the Commission will approve an annual contribution to the Trust in the amount of the Annual Required Contribution as determined by the Commission's Actuary during the approval of each budget. This Policy Letter supersedes all previous Policy Letters on this subject. [1]

207 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.09 APPROVAL DATE: EFFECTIVE DATE: Tax-Exempt Debt, Build America Bonds and Other Tax-Advantaged Debt Post- Issuance Compliance Policies and Procedures Finance Department REVISED DATE: A. PURPOSE: The Pennsylvania Turnpike Commission (the PTC ) has covenanted in the applicable issuance documents to comply with all applicable federal tax rules related to its tax-exempt debt, Build America Bonds and other tax-advantaged debt issuances (Build America Bonds and other taxadvantaged debt issuances are referred to collectively herein as Tax-Advantaged Debt ). This includes compliance with all applicable federal tax documentation and filing requirements, yield restriction limitations, arbitrage rebate requirements, use of proceeds and financed projects limitations and recordkeeping requirements. The PTC s Chief Financial Officer on behalf of the PTC hereby adopts the following policies and procedures (these Policies and Procedures ) to facilitate compliance with the federal tax law applicable to outstanding tax-exempt debt and other Tax-Advantaged Debt issuances. 1 This policy is to be used in conjunction with the bond issuance documentation and is not a substitute for specific bond documents. B. Accountability Except as otherwise described herein, the PTC s Finance Department (the Finance Department ) will have primary responsibility for ensuring that outstanding tax-exempt debt and other Tax-Advantaged Debt issuances are, and will remain, in compliance with applicable federal tax law. The Finance Department will consult with other departments within the PTC, as well as third-party professionals (e.g., bond counsel and arbitrage rebate provider), as necessary, to ensure compliance with such rules, including these Policies and Procedures. The Chief Financial Officer (the "Compliance Officer") shall have the primary operating responsibility within the Finance Department to monitor adherence to these Policies and Procedures. The Compliance Officer may delegate aspects of such responsibility to other employees or outside professionals or counsel of the PTC, but shall retain overall responsibility 1 Approved by the Board of Commissioners of the PTC at its meeting on December 6,

208 for ensuring compliance and coordinating compliance when more than one individual or contractor is given responsibility. C. Closing of Debt Issuances Tax Certificates - In connection with each issuance of tax-exempt debt or other Tax-Advantaged Debt, the PTC will employ bond counsel experienced with the federal tax laws applicable to taxexempt debt or other counsel experienced in the federal tax laws applicable to any other Tax- Advantaged Debt (any of such counsel for a specific issuance are referred to herein as bond counsel ). Bond counsel, with assistance from the PTC and other professionals associated with the financing, shall prepare a Tax Certificate in connection with the issuance of each series of tax-exempt debt or other Tax-Advantaged Debt, to be executed by an appropriate officer of the PTC (or as otherwise appropriate) at closing. The Tax Certificate shall serve as the operative document for purposes of establishing the PTC's reasonable expectations as of the date of issuance, as well as provide a summary of the federal tax rules applicable to such issuance. The Compliance Officer, in consultation with bond counsel, will review each Tax Certificate prior to the closing of the issue. Internal Revenue Service Form 8038-G Tax-Exempt Bonds - Bond counsel, with assistance from the PTC and other professionals associated with the financing, shall prepare an Internal Revenue Service Form 8038-G in connection with each tax-exempt debt issuance issued by the PTC, which the Compliance Officer will review prior to closing. Each Internal Revenue Service Form 8038-G prepared for a tax-exempt debt issuance will be filed with the Internal Revenue Service by no later than the 15th day after the 2nd calendar month after the close of the calendar quarter in which the tax-exempt obligation to which such Form 8038-G relates is issued. Other Tax-Advantaged Bonds - Bond counsel, with assistance from the PTC and other professionals associated with the financing, shall prepare any Internal Revenue Service Form required in connection with any issuance of Tax-Advantaged Debt, which the Finance Department will review prior to closing. Such forms shall be timely filed with the Internal Revenue Service by such date and in such manner as directed by bond counsel. The Compliance Officer, in consultation with bond counsel, will review each such form prior to the closing of the issue. D. Special Provisions Applicable to Tax-Advantaged Debt. 2 Use of Available Project Proceeds. One hundred percent (100%) of the available project proceeds of each issue of Build America Bonds shall be used to finance capital expenditures. As part of the review process described in Part IX, the Compliance Officer shall review the application of the proceeds of Build America Bonds with respect to this requirement. Preparation and Filing of IRS Form 8038-CP. The Finance Department will prepare, or cause to be prepared, a separate IRS Form 8038-CP for each claimed refundable credit payment. In the 2 Assumes that no new issuances of Build America Bonds are authorized and that there is no other Tax-Advantaged Debt which the PTC currently plans to issue. The Compliance Officer will work with bond counsel to amend these procedures as appropriate if the issuance of Tax-Advantaged Debt is authorized in the future. 2

209 case of fixed rate Build America Bonds, 3 the PTC will complete an IRS Form 8038-CP for each interest payment date, such IRS Form 8038-CP to be filed no later than 45 days prior to the interest payment date for which such refundable credit is claimed and no earlier than 90 days prior to the applicable interest payment date for which such refundable credit is claimed. For each issuance of Build America Bonds, the PTC required a financial professional to prepare a schedule setting forth the interest scheduled to be paid to the holders of the bonds, the date on which such amounts are expected to be paid and the amount of refundable credits expected to be claimed by the PTC from the Treasury Department. This schedule was attached to the IRS Form 8038-B filed in connection with each issuance of Build America Bonds and will serve as the basis for the IRS Form 8038-CPs. Retention of Records. The Finance Department will retain a copy of each IRS Form 8038-CP submitted on behalf of the PTC, together with records of interest paid by the PTC for which such refundable credits are claimed, as described in Part VIII, Recordkeeping, below. E. Use of Debt Proceeds Restrictions on Private Business Use. The Compliance Officer shall enforce the restrictions on private business use (as defined in Section 141 of the Internal Revenue Code of 1986, as amended (the Code ), and further described below) that apply to land, buildings, facilities and equipment ("property") which are financed with proceeds of tax-exempt bonds or Build America Bonds. 4 Under Section 141 of the Code, no more than generally 10% of such proceeds (5% in certain cases) of any bond issue (including the property financed with the bonds) may be used for private business use. 5 "Private business use" is use by any person other than a state or local government unit (a nongovernmental person ), including business corporations, partnerships, limited liability companies, associations, nonprofit corporations, natural persons engaged in trade or business activity, and the United States of America and any federal agency, as a result of ownership of the property or use of the property under a lease, management or service contract (except for certain "qualified" management or service contracts), output contract for the purchase of electricity or water, privately sponsored research contract (except for certain "qualified" research contracts), "naming rights" contract, "public-private partnership" arrangement, or any similar use arrangement that provides special legal entitlements for the use of the bondfinanced property. Before the PTC enters into any use arrangement with a nongovernmental person 6 with respect to bond-financed property, the Compliance Officer will evaluate whether that use arrangement, 3 The PTC has not issued any variable rate Build America Bonds. 4 For Tax-Advantaged Debt other than Build America Bonds, the PTC shall obtain advice in the Tax Certificate for such issue as to whether the restrictions in this Part are applicable. 5 Private business use must be combined with private payments (as defined in Section 141 of the Code) for an issue of bonds to violate the federal tax laws. If private business use is determined, the analysis of any corresponding private payments should be part of the review by the Compliance Officer and bond counsel. 6 Arrangements with a state or local government unit shall be reviewed as well to the extent that such state or local government unit has the right to allow nongovernmental persons to use the subject property. The United States of America is a nongovernmental person for purposes of the determination of 3

210 if put into effect, will be consistent with the restrictions on private business use of the bondfinanced property. In connection with the evaluation of any proposed nongovernmental use arrangement, the Compliance Officer shall determine whether to engage nationally recognized bond counsel to obtain advice on whether that use arrangement, if put into effect, will be consistent with the restrictions on private business use of the bond-financed property, and, if not, whether any "remedial action" permitted under section 141 of the Code may be taken with respect to such use arrangement. Private business use starts on the first date on which the PTC enters into a binding contract with a nongovernmental person for use of the financed property which is not subject to any material contingencies. Records shall be maintained of nongovernmental uses, if any, of financed property, including copies of the pertinent leases, contracts or other documentation, any related determination that those nongovernmental uses are not inconsistent with the status of the debt that financed the property, including any advice received from bond counsel, and, if required, any remedial actions taken. Private Loans. The Compliance Officer shall enforce the restriction that under section 141 of the Code, no more than the lesser of $5,000,000 or 5% of the proceeds of a bond issue may be used to make or finance a loan to any person other than a state or local government unit. F. Accounting for Debt Proceeds General. Except as otherwise described below or in the applicable Tax Certificate, it is the policy of the PTC to apply a direct costing method of accounting for and allocating its tax-exempt debt and other Tax-Advantaged Debt proceeds. Investment of Proceeds. Proceeds of tax-exempt debt and other Tax-Advantaged Debt shall be held in a separate fund or account held by the applicable trustee, and invested as set forth in the indenture (or other operative document) pursuant to which such debt is issued, and subject to any restrictions in the applicable Tax Certificate. Expenditure of Proceeds on Capital Projects. Proceeds of tax-exempt debt or other Tax- Advantaged Debt issues will be expended as follows: 1. Projects (Work Breakdown Structure ( WBS ) elements and associated purchase orders) to be funded by such issue are identified. 2. The Accounting Department processes invoices for payment by charging them to purchase orders or WBS elements thus charging the appropriate fund. 3. Accounts payable generates check runs which produce payment documents. A transaction is then run that uses the payment documents to calculate the amount of payments from each fund (account). 4. Monies are then transferred from each fund (account) to the disbursement account. 5. All invoices and records of payment will be retained by the Accounting Department. The Accounting Department shall maintain an active ledger, updated with each payment of an expenditure from tax-exempt debt and other Tax-Advantaged Debt proceeds that for each outstanding debt issuance shows: private business use. 4

211 1. The name and date of issue to which the proceeds relate. 2. The specific projects and costs, including any soft costs such as architectural and engineering, financed with the proceeds of the issue. 3. The proceeds of the issue used to finance each project, as of any specified date. 4. The amount of unspent proceeds of the issue to be used to finance projects. 5. The date on which the debt proceeds were fully expended. G. Arbitrage Arbitrage Rebate Monitor. The PTC will continue to retain an independent, third-party arbitrage rebate monitor to review its outstanding tax-exempt debt and other Tax-Advantaged Debt issuances. The arbitrage rebate monitor will perform calculations (at least annually) to ascertain whether the PTC owes an arbitrage rebate payment or yield reduction payment to the Internal Revenue Service, and whether any issue qualifies for an exception to the arbitrage rebate rules. Payment of Arbitrage Rebate and Yield Reduction Liability. In the event the PTC owes arbitrage rebate or has accrued a yield reduction payment liability to the Internal Revenue Service, the PTC will timely submit Internal Revenue Service Form 8038-T, Arbitrage Rebate Yield Reduction and Penalty in Lieu of Arbitrage Rebate, to the Internal Revenue Service, as prepared by the arbitrage rebate monitor, together with payment in the amount equal to the arbitrage rebate or yield reduction payment liability calculated by the arbitrage rebate monitor in accordance with the Tax Certificate related to such debt issue. The Compliance Officer shall review each Form 8038-T prior to submission. Yield Restriction Limitations. Each Tax Certificate prepared for tax-exempt debt and other Tax- Advantaged Debt issues shall contain the applicable yield restriction investment limitations, including the applicable investment limitations imposed on proceeds of the debt issuance and any temporary periods during which the PTC may invest proceeds of the debt issuance at an unrestricted yield. Arbitrage Rebate Exceptions. Each Tax Certificate prepared for tax-exempt debt and other Tax- Advantaged Debt issuances shall contain the arbitrage rebate exception(s) applicable to the debt issuance, which arbitrage rebate exceptions will be applied by the arbitrage rebate monitor in assessing whether the PTC owes arbitrage rebate. Interest Rate Hedges. The PTC will engage a third party financial advisor (or use its then-current financial advisor) for all interest rate hedges entered into by the PTC, whether any such hedge is acquired through a direct negotiation with the provider or procured through a bidding process. In all cases, the PTC will obtain appropriate certifications from its financial advisor and/or the provider to establish the fair market value of the hedge. The PTC will consult with bond counsel prior to entering into any interest rate hedge (including any amendments to or other modifications of existing interest rate hedges). The PTC shall (either in the applicable Tax Certificate or otherwise) obtain advice from bond counsel on the effect of each interest rate hedge on the yield of the applicable issue of tax-exempt debt or Tax-Advantaged Debt and take all steps advised by bond counsel to appropriately identify any hedges which are intended to be integrated into the yield on an issue. H. Recordkeeping 5

212 General. The PTC is aware of its ongoing recordkeeping responsibilities associated with its taxexempt debt and other Tax-Advantaged Debt issuances. Unless otherwise provided in the applicable Tax Certificate, the provisions of this Part VIII shall apply to all records described herein. Means of Maintaining Records. The PTC may maintain all records required to be held as described in paper and/or electronic (e.g., CD, disks, tapes) form. Transcript and Use of Debt Proceeds. The PTC shall maintain, or cause to be maintained, all records relating to the tax-exempt status of its tax-exempt debt issuances and the qualification of other Tax-Advantaged Debt and the representations, certifications and covenants set forth in its respective Tax Certificates until the date 3 years after the last outstanding obligation of the issue to which such records and Tax Certificate relate has been retired. The records that must be retained include, but are not limited to those shown on Attachment A. Investment Records. The PTC will require its investment manager(s) and/or its trustees to maintain detailed records with respect to every investment acquired with proceeds of its taxexempt debt and other Tax-Advantaged Debt, as further described on Attachment B. The PTC shall be provided with copies of such records regularly and maintain all such records until the date 3 years after the last outstanding obligation of the issue to which such records and nonpurpose investments relate has been retired. Arbitrage Rebate and Yield Reduction Payment Records. The Finance Department shall maintain all records of arbitrage rebate payment and yield reduction payment calculations performed by the arbitrage rebate monitor and records related to any arbitrage rebate payments or yield reduction payments made to the Internal Revenue Service, including the calculations performed by the arbitrage rebate monitor substantiating such payments, together with the Internal Revenue Service Form 8038-T that accompanied all such payments, until the date 3 years after the last outstanding obligation of the issue to which such records and rebate payments relate has been retired. Overpayment of Arbitrage Rebate Records. In the event the PTC has overpaid to the United States an arbitrage rebate or yield reduction payment liability, the PTC shall maintain all records of such arbitrage rebate payments or yield reduction payments, including calculations performed by the arbitrage rebate monitor, together with the Internal Revenue Service Form 8038-R, Request for Recovery of Overpayments Under Arbitrage Rebate Provisions, that accompanied the request for a recovery of such overpayment until the date 3 years after the last outstanding obligation of the issue to which such records and rebate overpayments relate has been retired. Refundable Credit Payment Records. The Finance Department shall maintain all records of each claimed refundable credit payment for Build America Bonds and the calculations with respect to such refundable credits, together with the Internal Revenue Service Form 8038-CP requesting each such payment until the date 3 years after the last outstanding obligation of the issue to which such records and refundable credit payments relate has been retired. Other Records. In addition to the records described above, the PTC will maintain the records shown on Attachment C, to the extent applicable to a particular tax-exempt debt offering, until the date 3 years after the last outstanding obligation of the issue to which such relate has been retired. Applicability of Recordkeeping Requirement in the Event of a Refunding. In the event the PTC issues tax-exempt debt or other Tax-Advantaged Debt to retire prior debt, the PTC shall maintain all of the records described in this part with respect to the refunded debt until the date 6

213 that is 3 years after the last outstanding tax-exempt obligation or other Tax-Advantaged Debt of the issue the proceeds of which were used to retire the refunded debt has been retired. I. Annual Review The Compliance Officer shall review, at regular intervals, on at least an annual basis, whether the provisions of this Compliance Policy have been followed for each issuance by the PTC of tax-exempt debt or other Tax-Advantaged Debt and whether any violations of the applicable federal tax law have been determined for any issue of tax-exempt debt or other Tax-Advantaged Debt. This review shall include an examination of the records generated in compliance with these Policies and Procedures to determine whether such records show any violation or potential violation of the applicable federal tax law for any issue of tax-exempt debt or other Tax-Advantaged Debt. In the case of failure to follow this Compliance Policy, the Compliance Officer shall review such failure with the appropriate PTC employees or outside professionals or counsel and determine appropriate action to ensure future compliance. In the case of a violation or potential violation of the applicable federal tax law, the Compliance Officer shall review and comply with the appropriate remedial actions as described in Part X. J. Remedial Actions If the Compliance Officer determines that an action or failure to act on the part of the PTC has resulted in, or could result in, a violation of the applicable federal tax law for any issue of tax-exempt debt or other Tax-Advantaged Debt, the Compliance Officer shall consult with the PTC s Chief Counsel and bond counsel as to the appropriate remedy for such violation or potential violation and take such steps as are reasonably required to implement such remedies so as to continue to comply with the PTC s covenants to maintain the tax-exempt status of tax-exempt debt or to preserve the status of Tax-Advantaged Debt, as applicable. Currently available remedies for certain violations of the federal tax laws include: 1. For violations of the restrictions on private business use, Treasury Regulations Section set forth certain remedial actions which can be taken following a deliberate action 7 which causes private business use, including redemption of bonds, alternative use of proceeds and alternative use of financed facilities. Certain remedies must be taken by the date of the deliberate action or shortly thereafter (within 90 days, for example, for redemptions). A deliberate action occurs on the first date on which the issuer enters into a binding contract with a nongovernmental person for use of the financed property which is not subject to any material contingencies. 7 Generally, a deliberate action is any action taken by the issuer which is within its control. An intent to violate the federal tax law is not required in order to have a deliberate action. 7

214 2. The Internal Revenue Service has a voluntary closing agreement program for tax-exempt debt and other Tax-Advantaged Debt ( TEB VCAP ) which allows issuers to voluntarily resolve violations of the Code or applicable regulations through closing agreements with the Internal Revenue Service. TEB VCAP is not available when: (a) absent extraordinary circumstances, the violation can be remediated under existing remedial action provisions or other tax-exempt bond closing agreement programs; (b) the issue is under examination; (c) the tax-exempt status or tax-advantaged status of the debt is at issue in any court proceeding or is being considered by the IRS Office of Appeals; or (d) the Internal Revenue Service determines that the violation was due to willful neglect. 3. For certain violations of the rebate and arbitrage rules, an issuer can pay a penalty under Treasury Regulations Section (h) or make yield reduction payments under Treasury Regulations Section (c). The Compliance Officer shall also review this Compliance Policy in light of such violation or potential violation and determine whether amendments are needed to the procedures set forth herein in order to prevent any future occurrence thereof. K. Training Based on his or her experience, the Compliance Officer, upon assuming such role, shall determine whether he or she needs to attend training in order to perform the duties hereunder. The Compliance Officer shall also determine the same for any employee who has been delegated responsibility under this policy, and shall arrange for the appropriate training in each case. In addition, the Compliance Officer or the appropriate delegate shall attend (in person or via the internet) at least one conference, seminar or webinar each year in which current issues with respect to compliance with the arbitrage rules and private business use rules of the federal tax code are discussed. The Compliance Officer may also consult with bond counsel, request to attend such other training program (for him or herself or another employee) or obtain such training materials as are reasonably required in order to permit the Compliance Officer or any delegate to perform his or her duties hereunder. 8

215 Name of Issuer Principal Amount Date of Issue Purpose of Issue Interest Payment Dates Principal Payment Dates Final Maturity Date CUSIP for Final Maturity Pledge/Security Trustee or Paying Agent/Contact Bond Counsel/Contact Underwriter/Contact Financial Advisor Escrow Agent (if Applicable) Verification Agent (if Applicable) Swap/Investment Advisor (if Applicable) Swap Counterparty (if Applicable) Trust Agreement or Indenture (if Applicable) Attachment A Transcript Records/Documents Tax Certificate Copy of IRS Form 8038 (together with proof of filing) Issue Price Certificate (and any other documentation related to issue price) Official Statement Escrow Agreement Verification Report Credit Enhancement Documents Bond Counsel Opinion(s) [9]

216 Type of investment Purchase date Purchase price Attachment B Investment Records Any discount or premium Information establishing fair market value on the date such investment became allocated to gross proceeds of the debt Any accrued interest paid or received Par or face amount Coupon or stated interest rate Periodicity of interest payments Compounding period Maturity date Disposition price Disposition date Broker Broker s fees paid (if at all) or other administrative costs Yield [10]

217 Attachment C Other Records Meeting minutes for the resolutions described immediately below Resolutions authorizing the issuance of, or the reimbursement of expenditures using proceeds of, the financing Documentation relating to any third-party funding for a project to which tax-exempt debt proceeds will be applied (including government grants) Records of any Internal Revenue Service audit(s) or compliance check(s), or any other Internal Revenue Service inquiry related to the debt. This Policy Letter supersedes all previous Policy Letters on this subject. [11]

218 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.09 APPROVAL DATE: EFFECTIVE DATE: Tax-Exempt Debt, Build America Bonds and Other Tax-Advantaged Debt Post- Issuance Compliance Policies and Procedures Finance and Administration REVISED DATE: A. PURPOSE: The Pennsylvania Turnpike Commission (the PTC ) has covenanted in the applicable issuance documents to comply with all applicable federal tax rules related to its tax-exempt debt, Build America Bonds and other tax-advantaged debt issuances (Build America Bonds and other taxadvantaged debt issuances are referred to collectively herein as Tax-Advantaged Debt ). This includes compliance with all applicable federal tax documentation and filing requirements, yield restriction limitations, arbitrage rebate requirements, use of proceeds and financed projects limitations and recordkeeping requirements. The PTC s Chief Financial Officer on behalf of the PTC hereby adopts the following policies and procedures (these Policies and Procedures ) to facilitate compliance with the federal tax law applicable to outstanding tax-exempt debt and other Tax-Advantaged Debt issuances. 1 This policy is to be used in conjunction with the bond issuance documentation and is not a substitute for specific bond documents. B. Accountability Except as otherwise described herein, the PTC s Finance Department (the Finance Department ) will have primary responsibility for ensuring that outstanding tax-exempt debt and other Tax-Advantaged Debt issuances are, and will remain, in compliance with applicable federal tax law. The Finance Department will consult with other departments within the PTC, as well as third-party professionals (e.g., bond counsel and arbitrage rebate provider), as necessary, to ensure compliance with such rules, including these Policies and Procedures. The Chief Financial Officer (the "Compliance Officer") shall have the primary operating responsibility within the Finance Department to monitor adherence to these Policies and Procedures. The Compliance Officer may delegate aspects of such responsibility to other employees or outside professionals or counsel of the PTC, but shall retain overall responsibility 1 Approved by the Board of Commissioners of the PTC at its meeting on December 6,

219 for ensuring compliance and coordinating compliance when more than one individual or contractor is given responsibility. C. Closing of Debt Issuances Tax Certificates - In connection with each issuance of tax-exempt debt or other Tax-Advantaged Debt, the PTC will employ bond counsel experienced with the federal tax laws applicable to taxexempt debt or other counsel experienced in the federal tax laws applicable to any other Tax- Advantaged Debt (any of such counsel for a specific issuance are referred to herein as bond counsel ). Bond counsel, with assistance from the PTC and other professionals associated with the financing, shall prepare a Tax Certificate in connection with the issuance of each series of tax-exempt debt or other Tax-Advantaged Debt, to be executed by an appropriate officer of the PTC (or as otherwise appropriate) at closing. The Tax Certificate shall serve as the operative document for purposes of establishing the PTC's reasonable expectations as of the date of issuance, as well as provide a summary of the federal tax rules applicable to such issuance. The Compliance Officer, in consultation with bond counsel, will review each Tax Certificate prior to the closing of the issue. Internal Revenue Service Form 8038-G Tax-Exempt Bonds - Bond counsel, with assistance from the PTC and other professionals associated with the financing, shall prepare an Internal Revenue Service Form 8038-G in connection with each tax-exempt debt issuance issued by the PTC, which the Compliance Officer will review prior to closing. Each Internal Revenue Service Form 8038-G prepared for a tax-exempt debt issuance will be filed with the Internal Revenue Service by no later than the 15th day after the 2nd calendar month after the close of the calendar quarter in which the tax-exempt obligation to which such Form 8038-G relates is issued. Other Tax-Advantaged Bonds - Bond counsel, with assistance from the PTC and other professionals associated with the financing, shall prepare any Internal Revenue Service Form required in connection with any issuance of Tax-Advantaged Debt, which the Finance Department will review prior to closing. Such forms shall be timely filed with the Internal Revenue Service by such date and in such manner as directed by bond counsel. The Compliance Officer, in consultation with bond counsel, will review each such form prior to the closing of the issue. D. Special Provisions Applicable to Tax-Advantaged Debt. 2 Use of Available Project Proceeds. One hundred percent (100%) of the available project proceeds of each issue of Build America Bonds shall be used to finance capital expenditures. As part of the review process described in Part IX, the Compliance Officer shall review the application of the proceeds of Build America Bonds with respect to this requirement. Preparation and Filing of IRS Form 8038-CP. The Finance Department will prepare, or cause to be prepared, a separate IRS Form 8038-CP for each claimed refundable credit payment. In the 2 Assumes that no new issuances of Build America Bonds are authorized and that there is no other Tax-Advantaged Debt which the PTC currently plans to issue. The Compliance Officer will work with bond counsel to amend these procedures as appropriate if the issuance of Tax-Advantaged Debt is authorized in the future. 2

220 case of fixed rate Build America Bonds, 3 the PTC will complete an IRS Form 8038-CP for each interest payment date, such IRS Form 8038-CP to be filed no later than 45 days prior to the interest payment date for which such refundable credit is claimed and no earlier than 90 days prior to the applicable interest payment date for which such refundable credit is claimed. For each issuance of Build America Bonds, the PTC required a financial professional to prepare a schedule setting forth the interest scheduled to be paid to the holders of the bonds, the date on which such amounts are expected to be paid and the amount of refundable credits expected to be claimed by the PTC from the Treasury Department. This schedule was attached to the IRS Form 8038-B filed in connection with each issuance of Build America Bonds and will serve as the basis for the IRS Form 8038-CPs. Retention of Records. The Finance Department will retain a copy of each IRS Form 8038-CP submitted on behalf of the PTC, together with records of interest paid by the PTC for which such refundable credits are claimed, as described in Part VIII, Recordkeeping, below. E. Use of Debt Proceeds Restrictions on Private Business Use. The Compliance Officer shall enforce the restrictions on private business use (as defined in Section 141 of the Internal Revenue Code of 1986, as amended (the Code ), and further described below) that apply to land, buildings, facilities and equipment ("property") which are financed with proceeds of tax-exempt bonds or Build America Bonds. 4 Under Section 141 of the Code, no more than generally 10% of such proceeds (5% in certain cases) of any bond issue (including the property financed with the bonds) may be used for private business use. 5 "Private business use" is use by any person other than a state or local government unit (a nongovernmental person ), including business corporations, partnerships, limited liability companies, associations, nonprofit corporations, natural persons engaged in trade or business activity, and the United States of America and any federal agency, as a result of ownership of the property or use of the property under a lease, management or service contract (except for certain "qualified" management or service contracts), output contract for the purchase of electricity or water, privately sponsored research contract (except for certain "qualified" research contracts), "naming rights" contract, "public-private partnership" arrangement, or any similar use arrangement that provides special legal entitlements for the use of the bondfinanced property. Before the PTC enters into any use arrangement with a nongovernmental person 6 with respect to bond-financed property, the Compliance Officer will evaluate whether that use arrangement, 3 The PTC has not issued any variable rate Build America Bonds. 4 For Tax-Advantaged Debt other than Build America Bonds, the PTC shall obtain advice in the Tax Certificate for such issue as to whether the restrictions in this Part are applicable. 5 Private business use must be combined with private payments (as defined in Section 141 of the Code) for an issue of bonds to violate the federal tax laws. If private business use is determined, the analysis of any corresponding private payments should be part of the review by the Compliance Officer and bond counsel. 6 Arrangements with a state or local government unit shall be reviewed as well to the extent that such state or local government unit has the right to allow nongovernmental persons to use the subject property. The United States of America is a nongovernmental person for purposes of the determination of 3

221 if put into effect, will be consistent with the restrictions on private business use of the bondfinanced property. In connection with the evaluation of any proposed nongovernmental use arrangement, the Compliance Officer shall determine whether to engage nationally recognized bond counsel to obtain advice on whether that use arrangement, if put into effect, will be consistent with the restrictions on private business use of the bond-financed property, and, if not, whether any "remedial action" permitted under section 141 of the Code may be taken with respect to such use arrangement. Private business use starts on the first date on which the PTC enters into a binding contract with a nongovernmental person for use of the financed property which is not subject to any material contingencies. Records shall be maintained of nongovernmental uses, if any, of financed property, including copies of the pertinent leases, contracts or other documentation, any related determination that those nongovernmental uses are not inconsistent with the status of the debt that financed the property, including any advice received from bond counsel, and, if required, any remedial actions taken. Private Loans. The Compliance Officer shall enforce the restriction that under section 141 of the Code, no more than the lesser of $5,000,000 or 5% of the proceeds of a bond issue may be used to make or finance a loan to any person other than a state or local government unit. F. Accounting for Debt Proceeds General. Except as otherwise described below or in the applicable Tax Certificate, it is the policy of the PTC to apply a direct costing method of accounting for and allocating its tax-exempt debt and other Tax-Advantaged Debt proceeds. Investment of Proceeds. Proceeds of tax-exempt debt and other Tax-Advantaged Debt shall be held in a separate fund or account held by the applicable trustee, and invested as set forth in the indenture (or other operative document) pursuant to which such debt is issued, and subject to any restrictions in the applicable Tax Certificate. Expenditure of Proceeds on Capital Projects. Proceeds of tax-exempt debt or other Tax- Advantaged Debt issues will be expended as follows: 1. Projects (Work Breakdown Structure ( WBS ) elements and associated purchase orders) to be funded by such issue are identified. 2. The Accounting Department processes invoices for payment by charging them to purchase orders or WBS elements thus charging the appropriate fund. 3. Accounts payable generates check runs which produce payment documents. A transaction is then run that uses the payment documents to calculate the amount of payments from each fund (account). 4. Monies are then transferred from each fund (account) to the disbursement account. 5. All invoices and records of payment will be retained by the Accounting Department. The Accounting Department shall maintain an active ledger, updated with each payment of an expenditure from tax-exempt debt and other Tax-Advantaged Debt proceeds that for each outstanding debt issuance shows: private business use. 4

222 1. The name and date of issue to which the proceeds relate. 2. The specific projects and costs, including any soft costs such as architectural and engineering, financed with the proceeds of the issue. 3. The proceeds of the issue used to finance each project, as of any specified date. 4. The amount of unspent proceeds of the issue to be used to finance projects. 5. The date on which the debt proceeds were fully expended. G. Arbitrage Arbitrage Rebate Monitor. The PTC will continue to retain an independent, third-party arbitrage rebate monitor to review its outstanding tax-exempt debt and other Tax-Advantaged Debt issuances. The arbitrage rebate monitor will perform calculations (at least annually) to ascertain whether the PTC owes an arbitrage rebate payment or yield reduction payment to the Internal Revenue Service, and whether any issue qualifies for an exception to the arbitrage rebate rules. Payment of Arbitrage Rebate and Yield Reduction Liability. In the event the PTC owes arbitrage rebate or has accrued a yield reduction payment liability to the Internal Revenue Service, the PTC will timely submit Internal Revenue Service Form 8038-T, Arbitrage Rebate Yield Reduction and Penalty in Lieu of Arbitrage Rebate, to the Internal Revenue Service, as prepared by the arbitrage rebate monitor, together with payment in the amount equal to the arbitrage rebate or yield reduction payment liability calculated by the arbitrage rebate monitor in accordance with the Tax Certificate related to such debt issue. The Compliance Officer shall review each Form 8038-T prior to submission. Yield Restriction Limitations. Each Tax Certificate prepared for tax-exempt debt and other Tax- Advantaged Debt issues shall contain the applicable yield restriction investment limitations, including the applicable investment limitations imposed on proceeds of the debt issuance and any temporary periods during which the PTC may invest proceeds of the debt issuance at an unrestricted yield. Arbitrage Rebate Exceptions. Each Tax Certificate prepared for tax-exempt debt and other Tax- Advantaged Debt issuances shall contain the arbitrage rebate exception(s) applicable to the debt issuance, which arbitrage rebate exceptions will be applied by the arbitrage rebate monitor in assessing whether the PTC owes arbitrage rebate. Interest Rate Hedges. The PTC will engage a third party financial advisor (or use its then-current financial advisor) for all interest rate hedges entered into by the PTC, whether any such hedge is acquired through a direct negotiation with the provider or procured through a bidding process. In all cases, the PTC will obtain appropriate certifications from its financial advisor and/or the provider to establish the fair market value of the hedge. The PTC will consult with bond counsel prior to entering into any interest rate hedge (including any amendments to or other modifications of existing interest rate hedges). The PTC shall (either in the applicable Tax Certificate or otherwise) obtain advice from bond counsel on the effect of each interest rate hedge on the yield of the applicable issue of tax-exempt debt or Tax-Advantaged Debt and take all steps advised by bond counsel to appropriately identify any hedges which are intended to be integrated into the yield on an issue. H. Recordkeeping 5

223 General. The PTC is aware of its ongoing recordkeeping responsibilities associated with its taxexempt debt and other Tax-Advantaged Debt issuances. Unless otherwise provided in the applicable Tax Certificate, the provisions of this Part VIII shall apply to all records described herein. Means of Maintaining Records. The PTC may maintain all records required to be held as described in paper and/or electronic (e.g., CD, disks, tapes) form. Transcript and Use of Debt Proceeds. The PTC shall maintain, or cause to be maintained, all records relating to the tax-exempt status of its tax-exempt debt issuances and the qualification of other Tax-Advantaged Debt and the representations, certifications and covenants set forth in its respective Tax Certificates until the date 3 years after the last outstanding obligation of the issue to which such records and Tax Certificate relate has been retired. The records that must be retained include, but are not limited to those shown on Attachment A. Investment Records. The PTC will require its investment manager(s) and/or its trustees to maintain detailed records with respect to every investment acquired with proceeds of its taxexempt debt and other Tax-Advantaged Debt, as further described on Attachment B. The PTC shall be provided with copies of such records regularly and maintain all such records until the date 3 years after the last outstanding obligation of the issue to which such records and nonpurpose investments relate has been retired. Arbitrage Rebate and Yield Reduction Payment Records. The Finance Department shall maintain all records of arbitrage rebate payment and yield reduction payment calculations performed by the arbitrage rebate monitor and records related to any arbitrage rebate payments or yield reduction payments made to the Internal Revenue Service, including the calculations performed by the arbitrage rebate monitor substantiating such payments, together with the Internal Revenue Service Form 8038-T that accompanied all such payments, until the date 3 years after the last outstanding obligation of the issue to which such records and rebate payments relate has been retired. Overpayment of Arbitrage Rebate Records. In the event the PTC has overpaid to the United States an arbitrage rebate or yield reduction payment liability, the PTC shall maintain all records of such arbitrage rebate payments or yield reduction payments, including calculations performed by the arbitrage rebate monitor, together with the Internal Revenue Service Form 8038-R, Request for Recovery of Overpayments Under Arbitrage Rebate Provisions, that accompanied the request for a recovery of such overpayment until the date 3 years after the last outstanding obligation of the issue to which such records and rebate overpayments relate has been retired. Refundable Credit Payment Records. The Finance Department shall maintain all records of each claimed refundable credit payment for Build America Bonds and the calculations with respect to such refundable credits, together with the Internal Revenue Service Form 8038-CP requesting each such payment until the date 3 years after the last outstanding obligation of the issue to which such records and refundable credit payments relate has been retired. Other Records. In addition to the records described above, the PTC will maintain the records shown on Attachment C, to the extent applicable to a particular tax-exempt debt offering, until the date 3 years after the last outstanding obligation of the issue to which such relate has been retired. Applicability of Recordkeeping Requirement in the Event of a Refunding. In the event the PTC issues tax-exempt debt or other Tax-Advantaged Debt to retire prior debt, the PTC shall maintain all of the records described in this part with respect to the refunded debt until the date 6

224 that is 3 years after the last outstanding tax-exempt obligation or other Tax-Advantaged Debt of the issue the proceeds of which were used to retire the refunded debt has been retired. I. Annual Review The Compliance Officer shall review, at regular intervals, on at least an annual basis, whether the provisions of this Compliance Policy have been followed for each issuance by the PTC of tax-exempt debt or other Tax-Advantaged Debt and whether any violations of the applicable federal tax law have been determined for any issue of tax-exempt debt or other Tax-Advantaged Debt. This review shall include an examination of the records generated in compliance with these Policies and Procedures to determine whether such records show any violation or potential violation of the applicable federal tax law for any issue of tax-exempt debt or other Tax-Advantaged Debt. In the case of failure to follow this Compliance Policy, the Compliance Officer shall review such failure with the appropriate PTC employees or outside professionals or counsel and determine appropriate action to ensure future compliance. In the case of a violation or potential violation of the applicable federal tax law, the Compliance Officer shall review and comply with the appropriate remedial actions as described in Part X. J. Remedial Actions If the Compliance Officer determines that an action or failure to act on the part of the PTC has resulted in, or could result in, a violation of the applicable federal tax law for any issue of tax-exempt debt or other Tax-Advantaged Debt, the Compliance Officer shall consult with the PTC s Chief Counsel and bond counsel as to the appropriate remedy for such violation or potential violation and take such steps as are reasonably required to implement such remedies so as to continue to comply with the PTC s covenants to maintain the tax-exempt status of tax-exempt debt or to preserve the status of Tax-Advantaged Debt, as applicable. Currently available remedies for certain violations of the federal tax laws include: 1. For violations of the restrictions on private business use, Treasury Regulations Section set forth certain remedial actions which can be taken following a deliberate action 7 which causes private business use, including redemption of bonds, alternative use of proceeds and alternative use of financed facilities. Certain remedies must be taken by the date of the deliberate action or shortly thereafter (within 90 days, for example, for redemptions). A deliberate action occurs on the first date on which the issuer enters into a binding contract with a nongovernmental person for use of the financed property which is not subject to any material contingencies. 7 Generally, a deliberate action is any action taken by the issuer which is within its control. An intent to violate the federal tax law is not required in order to have a deliberate action. 7

225 2. The Internal Revenue Service has a voluntary closing agreement program for tax-exempt debt and other Tax-Advantaged Debt ( TEB VCAP ) which allows issuers to voluntarily resolve violations of the Code or applicable regulations through closing agreements with the Internal Revenue Service. TEB VCAP is not available when: (a) absent extraordinary circumstances, the violation can be remediated under existing remedial action provisions or other tax-exempt bond closing agreement programs; (b) the issue is under examination; (c) the tax-exempt status or tax-advantaged status of the debt is at issue in any court proceeding or is being considered by the IRS Office of Appeals; or (d) the Internal Revenue Service determines that the violation was due to willful neglect. 3. For certain violations of the rebate and arbitrage rules, an issuer can pay a penalty under Treasury Regulations Section (h) or make yield reduction payments under Treasury Regulations Section (c). The Compliance Officer shall also review this Compliance Policy in light of such violation or potential violation and determine whether amendments are needed to the procedures set forth herein in order to prevent any future occurrence thereof. K. Training Based on his or her experience, the Compliance Officer, upon assuming such role, shall determine whether he or she needs to attend training in order to perform the duties hereunder. The Compliance Officer shall also determine the same for any employee who has been delegated responsibility under this policy, and shall arrange for the appropriate training in each case. In addition, the Compliance Officer or the appropriate delegate shall attend (in person or via the internet) at least one conference, seminar or webinar each year in which current issues with respect to compliance with the arbitrage rules and private business use rules of the federal tax code are discussed. The Compliance Officer may also consult with bond counsel, request to attend such other training program (for him or herself or another employee) or obtain such training materials as are reasonably required in order to permit the Compliance Officer or any delegate to perform his or her duties hereunder. 8

226 Name of Issuer Principal Amount Date of Issue Purpose of Issue Interest Payment Dates Principal Payment Dates Final Maturity Date CUSIP for Final Maturity Pledge/Security Trustee or Paying Agent/Contact Bond Counsel/Contact Underwriter/Contact Financial Advisor Escrow Agent (if Applicable) Verification Agent (if Applicable) Swap/Investment Advisor (if Applicable) Swap Counterparty (if Applicable) Trust Agreement or Indenture (if Applicable) Attachment A Transcript Records/Documents Tax Certificate Copy of IRS Form 8038 (together with proof of filing) Issue Price Certificate (and any other documentation related to issue price) Official Statement Escrow Agreement Verification Report Credit Enhancement Documents Bond Counsel Opinion(s) [9]

227 Type of investment Purchase date Purchase price Attachment B Investment Records Any discount or premium Information establishing fair market value on the date such investment became allocated to gross proceeds of the debt Any accrued interest paid or received Par or face amount Coupon or stated interest rate Periodicity of interest payments Compounding period Maturity date Disposition price Disposition date Broker Broker s fees paid (if at all) or other administrative costs Yield [10]

228 Attachment C Other Records Meeting minutes for the resolutions described immediately below Resolutions authorizing the issuance of, or the reimbursement of expenditures using proceeds of, the financing Documentation relating to any third-party funding for a project to which tax-exempt debt proceeds will be applied (including government grants) Records of any Internal Revenue Service audit(s) or compliance check(s), or any other Internal Revenue Service inquiry related to the debt. This Policy Letter supersedes all previous Policy Letters on this subject. [11]

229 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.10 APPROVAL DATE: EFFECTIVE DATE: Business and Supplier Diversity and Contract Compliance Office of Diversity and Inclusion REVISED DATE: A. PURPOSE: The Pennsylvania Turnpike Commission ( Commission ) recognizes the importance of disadvantaged, small, minority, women, service-disabled veteran-owned, and veteran-owned businesses to the economy of the Commonwealth and to the customers that travel the Pennsylvania Turnpike System. Accordingly, the Commission desires to promote fair and equitable opportunities and competition in Procurement by assisting Diverse Businesses in competing for contracting opportunities with the Commission. The Commission also establishes the Contract Compliance Review (CCR) Program to promote Nondiscrimination in Procurement through effective monitoring and reviews. B. SCOPE: This policy letter applies to Diverse Businesses seeking to do business with the Commission or its vendors and to Commission employees who plan, procure, and manage such contracts. C. GENERAL POLICY: It is the policy of the Commission to promote Equal Opportunity, Nondiscrimination, and competition in all Procurement opportunities through effective outreach, promotion, compliance monitoring, and reviews. The Commission supports a CCR program that takes measures to ensure that Commission Procurement opportunities and contracts are free from adverse impact without regard to race, color, religion, gender, national origin, or veteran status. CCR is supported by the following laws: Title VI Civil Rights Act of 1964, as amended; Title VII Civil Rights Act of 1964, as amended; Executive Order , Contract Compliance dated January 31, 2006; Affirmative Action and Nondiscrimination Obligation of Contractors and Subcontractors Regarding Individuals with Disabilities; Executive Order , Prohibition of Sexual Harassment in the Commonwealth, dated May 3, 2002; Age Discrimination in Employment Act of 1967, as amended; Equal Pay Act of 1963, as amended; Act 89 of 2013 (codified at 74 Pa. C.S.A. Section 303 as amended); 62 Pa. C.S.A. Section 103 as amended; 51 Pa. C.S.A. Chapter 96; and the Americans with Disabilities Act of 1990, as amended. [1]

230 The Commission s Office of Diversity and Inclusion ( Office ) administers the Commission s Business and Supplier Diversity Program and the Commission s CCR program. The Office has oversight responsibility for assuring Equal Opportunity and Nondiscrimination in Commission Procurement. The Office shall also recommend and monitor Minimum Participation Level Goals for Diverse Businesses for qualified professional services, construction, and engineering contracts. The Commission may establish Minimum Participation Level Goals for Diverse Business participation on all contracts, amendments, work orders and extensions that exceed $250, for Construction and Engineering Procurements and $50, for other Professional Services Procurements. An overall Commission objective of 10% of the value of purchases has been established for Diverse Businesses on all other Procurements not mentioned above. Firms prequalified through the Pennsylvania Department of Transportation ( PennDOT ) Prequalification of Bidders Program are expected to be familiar with and follow the Commission s Commitment to Business Diversity on Commission construction contracts. D. DEFINITIONS: 1. Diverse Business (DB): A Disadvantaged Business, minority-owned or women-owned business or service-disabled veteran-owned or veteran-owned small business that has been certified by a Third Party Certifying Organization. 2. Disadvantaged Business: A business that is owned or controlled by a majority of persons, not limited to members of minority groups, who are subject to racial or ethnic prejudice or cultural bias. 3. Equal Opportunity: Policies and practices in employment and other areas that do not discriminate against persons based on race, color, religion, gender, national origin, or veteran status. 4. Equal Opportunity Plan: A written document committing the vendor to a program designed to achieve a balanced work force within a reasonable period of time. It contains, at a minimum, a policy statement, work force analysis, program objectives, internal monitoring system and dissemination of the plan. 5. Good Faith Effort: Demonstrated steps by prospective Commission vendors to increase opportunities for Diverse Businesses. 6. Minimum Participation Level Goals: A designated amount or percentage of a Commissionfunded contract that establishes minimum goals for Diverse Business participation which reflects Commission goals for Diverse Business participation on that particular contract. 7. Nondiscrimination: The practice or policy of refraining from discriminatory practices. 8. Office: The Commission s Office of Diversity and Inclusion. [2]

231 9. Procurement: Buying, purchasing, renting, leasing, licensing, or otherwise acquiring any supplies, services, or construction. The term also includes all functions that pertain to the obtaining of any supply, service, or construction, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration. 10. Third Party Certifying Organization: An organization that certifies a small business, minorityowned business, women-owned business, or veteran-owned small business as a Diverse Business. The term includes the following approved Department of General Services certification entities: Unified Certification Program (UCP); United States Small Business Administration (SBA) Section 8(a) Program; National Minority Supplier Development Council (NMSDC); Women s Business Enterprise National Council (WBENC); VetBiz Vendor Information Pages (VIP) at vetbiz.gov. E. PROCEDURES: 1. The Office shall make available resources for business and supplier diversity through community outreach, partnerships, training, communications, and web presence. All information and resources regarding business diversity and contract compliance will be posted on the Commission s website and are available by contacting the Office. 2. The Office conducts periodic training and informational sessions for all prospective business entities desiring to do business, and those currently conducting business, with the Commission. 3. The Office shall implement Minimum Participation Level Goals for Diverse Business utilization as approved by the Commission. 4. As appropriate, the following terms shall be added to Commission Procurement contracts for construction and professional services: terms that provide for cooperation with the Office regarding compliance review (e.g. furnishing or making available for inspection, in a timely manner, a vendor s documents regarding contracting opportunities with Diverse Businesses and the vendor s Equal Opportunity Plan, communications, verification of payments, and necessary reports and assistance as required to complete a compliance review) and terms that provide for creation of development plans by the Office for vendors to comply with contracts requirements regarding Nondiscrimination and Equal Opportunity. 5. The Office shall have access to all information for all Commission Procurement activities to assure diversity and compliance throughout the Procurement process including an evaluation of Good Faith Efforts. Bids shall be evaluated based on the requirements set forth in the invitation [3]

232 for bids. Proposals shall be evaluated according to evaluation factors whose relative importance shall be fixed before opening the proposals. 6. Commission departments and employees involved in Procurement of construction and professional services shall obtain a copy of the vendor s documents regarding contracting opportunities with Diverse Businesses, the vendor s Equal Opportunity Plan, and a clearly stated plan for achieving compliance with applicable Commission Minimum Participation Level Goals. 7. Commission project managers are responsible for timely submittals of compliance reports and for contract oversight to ensure consistency of contract compliance. 8. The Office shall establish a monitoring and reporting system for contract compliance. As part of contract compliance, the Office may review contract documents and prepare reports of those reviews. Accordingly, vendors who are considered non-compliant after review by the Office may be subject to a development plan to improve within a designated timeframe. Vendors not fully compliant after a designated timeframe may be considered in breach of the Commission contract and may be subject to additional sanctions that may include: nonpayment, debarment, contract termination and/or civil or criminal referrals. 9. The Office shall coordinate the Commission s response to the following statutory reporting deadlines: A. Before PennDOT s annual October 1 deadline, the Office will forward to PennDOT information regarding the participation level of Diverse Businesses in all competitive contracting opportunities issued by the Commission; see 74 Pa. C.S.A. Section 303(A.1)(2) [PennDOT has this deadline for reporting the participation levels of Penn DOT, the Commission, and local transportation organizations to the Chairman and Minority Chairman of the Transportation Committee of the Pennsylvania Senate and the Chairman and Minority Chairman of the Transportation Committee of the Pennsylvania House of Representatives; the report shall include the percentage of participation by Diverse Businesses, the total value of all contracts executed which include participation by Diverse Businesses in the prior year, and the number of businesses penalized for violating Section 303]. B. Report in writing by October 1 annually to the Veterans Affairs and Emergency Preparedness Committee of the Pennsylvania Senate and to the Veterans Affairs and Emergency Preparedness Committee of the Pennsylvania House of Representatives the actual utilization by the Commission of veteran-owned small businesses and service-disabled veteran-owned small businesses during the preceding fiscal year, which includes a list of all veteran-owned small businesses and service-disabled veteran-owned small businesses that participated as contractors, subcontractors, suppliers, and professional services providers during the preceding fiscal year (see 51 Pa. C.S.A. Section 9607). This Policy Letter supersedes all previous Policy Letters on this subject. [4]

233 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.11 APPROVAL DATE: EFFECTIVE DATE: Emergency Procurement Strategic Sourcing and Asset Management REVISED DATE: A. PURPOSE: To meet the procurement needs of the Pennsylvania Turnpike Commission ( Commission ) where a Disaster or other Emergency Situation precludes normal procurement procedures, to ensure business continuity, and to diminish Disasters and Emergency Situations. B. SCOPE: This policy applies to Commission procurement needs during a Disaster or Emergency Situation. As soon as the Disaster or Emergency Situation is over, normal procurement procedures should be reinstated. This policy is not intended for procuring longer-term, capital acquisitions. C. GENERAL POLICY: It is the policy of the Commission to be prepared for Disasters or Emergency Situations so that the safety of customers and employees is not compromised and so that business continues in the most reasonable fashion by procuring goods and services needed to support these efforts. D. DEFINITIONS: 1. Disaster A Disaster is a natural or man-made (or technological) hazard resulting in an event of substantial extent causing significant physical damage or destruction, loss of life, or drastic change to the environment. Examples include weather related events and facility or infrastructure damage due to fire, flood, or terrorist activity. A declaration must be made by the Chief Executive Officer ( CEO ) or Chief Operating Officer ( COO ) that a Disaster has occurred and emergency procedures should be initiated. 2. Emergency Situation An Emergency Situation is a situation that poses an immediate risk to health, life, property or environment. Examples include supporting other communities in dealing with their own disasters, significant infrastructure breakdown such as the loss of the Commission communication network, and a work stoppage situation. A declaration must be made by the CEO or COO that an Emergency Situation has occurred and emergency procedures should be initiated. 3. Purchasing Policies and Procedures Manual The Purchasing Policies and Procedures Manual is a Commission document that sets forth Commission policy and procedures for bidding and related non-rfp procurement. 4. Purchasing Card ( PCard ) Program PCards are issued by a bank for Commission staff to acquire material that is needed on an urgent basis (e.g. a part for a vehicle repair needed to get the vehicle back into service expeditiously). The actual PCard looks like and is used the same as a [1]

234 typical credit card. Each card displays both Pennsylvania Turnpike Commission and the name of the staff person to whom the PCard is issued; the PCard is meant to be used only by the staff person to whom it is issued. Note that emergency needs as discussed in this policy are distinguished from the day-to-day urgent needs that PCards are normally used for. The PCard Program is governed by Policy Letter E. PROCEDURES: 1. The CEO or COO must formally declare a Disaster or Emergency Situation in writing. A copy of this written declaration shall be included in the relevant procurement contract files. A copy of the declaration must be sent in the most expeditious manner. If conveying the declaration in written format is not possible, efforts must be made to convey the declaration verbally. The declaration should be made to the following: a. Commissioners; b. All Chief Officers; c. Directors of: i. Operations and Incident Management; ii. Maintenance; iii. Fare Collection; iv. Facilities and Energy Management (FEMO); v. Operations Review; and d. Manager of Strategic Sourcing and Asset Management (SSAM). 2. Whenever practical, in the case of a procurement of a supply, at least two bids shall be solicited. However, after the declaration of a Disaster or Emergency Situation, Commission staff are authorized to adjust bid requirements and the approval for issuance of contracts and purchase orders, dictated in the Purchasing Policies and Procedures Manual, as follows: BID REQUIREMENTS Value Normal Emergency Up to $5,000 None None $5, to $10,000 Informal Bid None $10, to $50,000 Formal Bid None $50,000 Sealed and Advertised Bid None $100,000 Sealed and Advertised Bid Approve to waive bid on caseby-case basis by Commission. PURCHASE ORDER AND CONTRACT APPROVAL REQUIREMENTS Value Normal (Highest Level) Emergency Up to $50,000 SSAM Manager SSAM Manager $50,00.01 to $100,000 CEO SSAM Manager $100,000 Commission Commission 3. In preparation for a Disaster or Emergency Situation, the PCard Program should be adjusted to include a second PCard Holder profile known as Manager PCards. [2]

235 a. Manager PCards will be issued to a select group of PTC managers who can be expected to participate in procuring goods or services during a Disaster or Emergency Situation. The holder of a Manager PCard will not also have a Regular PCard. b. Manager PCards will be used only during a declared Disaster or Emergency Situation. c. Managers will be expected to keep the Manager PCard in a secure location but readily accessible during a Disaster or Emergency Situation. d. Merchant Classification Code (MCC) restrictions will not apply to Manager PCards. This will allow use of the Manager PCards for purchases such as lodging and restaurants that are restricted on Regular PCards. e. The per transaction limit of $1,000 for Regular PCards will be increased to $5,000 for Manager PCards. The per billing-cycle limit (one month) of $10,000 for Regular PCards will be increased to $50,000 for Manager PCards. f. Holders of Manager PCards will have access to $5,000 in cash advances per billing cycle. 4. The CEO or COO will declare the Disaster or Emergency Situation over at the appropriate time and will communicate this as above The holders of Manager PCards will follow the procedures for processing PCard purchases as defined in the PCard Program The Manager of SSAM will prepare a report of all contracts and purchases made during the Disaster or Emergency Situation and submit it to the CEO or COO for subsequent approval The Operations Review Department will perform a special audit of all contracts and purchases made during the Disaster or Emergency Situation. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

236 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.12 APPROVAL DATE: EFFECTIVE DATE: Job Order Contracting Facilities and Energy Management Operations REVISED DATE: A. PURPOSE: This policy letter governs the procurement of construction related services (including renovations, repairs, upgrades, additions, and new construction) via the Job Order Contracting (JOC) Program. JOC is an indefinite delivery/indefinite quantity method of delivering construction projects that allows the Pennsylvania Turnpike Commission ( Commission ) to accomplish a high volume of construction related service projects with a single, competitively bid contract. Several smaller projects can be completed more expeditiously under the umbrella of competitively bid, pre-established contracts which are bid by District. The policy seeks to ensure that: The need to determine which projects should be completed using the JOC process or the traditional design-bid-build process has been validated. The Commission receives the best value for the work requested by obtaining an independent cost estimate for projects over $500,000. JOC Contracts are created and executed in a consistent manner and in compliance with all Commission policies and procedures and with all other applicable laws. Proper financial, legal and Commission reviews and approvals are conducted and obtained. B. SCOPE: This Policy Letter applies to all JOC contracts entered into by the Commission: Contracts covered by this Policy Letter shall be classified according to the following contract topics: 1. General 2. HVAC 3. Electrical 4. Plumbing C. GENERAL POLICY: The JOC Contracting Program is designed to procure quality construction services in a timely manner at a competitive price. The JOC Program supports the Commission s said goals by having competitively bid and pre-selected JOC Contractors readily available to perform smaller project [1]

237 within specified Commission Districts in a timely manner without the need to competitively bid each project separately. D. DEFINITIONS: JOC Contract: A type of written agreement, regardless of what it may be called, for the procurement or disposal of supplies, services or construction and executed by all parties. Each of the five Commission Districts has a contract for each of the four (General, Electrical, HVAC, and Plumbing) contract topics. Approximately every 3-4 years, each contract topic is competitively bid in each District resulting in four separate JOC Contracts. The JOC construction contracts are built around a Construction Task Catalog (CTC), Technical Specifications, and Bid Documents. A contractor s bid on the JOC Contract consists of adjustment factors to be applied to the prices established by the CTC. An Award Criteria Figure is calculated by weighing the bid adjustment factors for straight time and overtime, and each contract is then awarded to the lowest responsible and responsive bidder. Job Order: A Job Order is a specific project utilizing a particular JOC contract in a particular District. As projects are identified, the successful JOC Contractor for a specified contract topic prepares a pricing proposal by selecting the appropriate tasks from the CTC and assigning the correct quantities. The total price is then calculated by multiplying each unit price by the required quantity and then multiplying that result by the appropriate adjustment factor. The proposal is reviewed by Commission staff to make sure the contractor selected the correct tasks and appropriate quantities. If the proposal is accurate, then a Job Order (purchase order) can be issued to the contractor for the approved project. Project: A Project is the proposed work resulting from a Job Order. A project may be singular in nature using one of the JOC contract topics, or it may result in the use of multi-prime contractors using several JOC contract topics. When using several Job Orders to complete a project the aggregated value should be used to create a purchase order against the JOC Contract. E. PROCEDURES: The procedure to create a Job Order is summarized as below. The Project Manager shall: 5. Determine if a project is needed. Are the services of a JOC contractor required? 6. Determine if the project is covered under this policy. All JOC contracts are covered. 7. Select the topic that applies to the contract. The JOC Contract Summary Guidelines describes the contract topics in further detail to assist in determining which topic applies to a particular contract situation. 8. Determine if the project is estimated less than $500,000, follow the procedures for that topic in the JOC egordian Quick Reference Guide in order to issue a Job Order. The JOC egordian Quick Reference Guide describes the procedure for each contract topic. [2]

238 9. If the estimated cost of the Job Order exceeds $500,000, obtain an independent cost estimate for review and approval by the Chief Operating Officer in order to proceed. 10. If the estimated cost of the Job Order exceeds $1,000,000, obtain an independent cost estimate for review and approval by the Chief Executive Officer and Chief Operating Officer in order to proceed. 11. Follow the procedures for that topic in the JOC egordian Quick Reference Guide in order to issue a Job Order against the JOC Contract. The JOC egordian Quick Reference Guide describes the procedure for each contract topic. Except in emergencies, no Job Orders shall be implemented nor shall any services be accepted or work begun on any contract not processed and approved in accordance with the policies and procedures set forth herein. Emergencies are deemed to be such things as a threat to public health, welfare and safety or circumstances outside the control of the Commission create an urgency of need which does not permit the delay involved in using more formal competitive methods. Failure to plan, meet upcoming deadlines or procrastination do not constitute emergencies. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

239 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.13 APPROVAL DATE: EFFECTIVE DATE: Non-Revenue Cards for Non- PTC Employees Facilities and Energy Management Operations REVISED DATE: A. PURPOSE: To establish a policy to govern the issuance and usage of Non-Revenue Cards for individuals who are not Pennsylvania Turnpike employees but are conducting official PTC business. B. SCOPE: This policy applies to individuals who conduct official PTC business on the Pennsylvania Turnpike but are not employees of the PTC. Examples of such individuals include, but are not limited to, contractors, subcontractors, consultants, subconsultants, concessionaires, authorized service providers, emergency response companies, and government agencies and entities. This policy does not apply to individuals whose use of non-revenue cards is governed by a contract between the individual and the PTC. C. GENERAL POLICY: Non-Revenue Cards will be issued for official Turnpike business use only. Free passage on the Turnpike is a non-transferrable privilege that does not under any circumstances extend to any other individuals. However, contractors, consultants, and concessionaires may distribute Non- Revenue Cards to subcontractors and subconsultants engaged in the official Turnpike business for which the cards were issued. In these instances, contractors, consultants, and concessionaires are required to monitor the assignment and return of the Non-Revenue Cards. The Non-Revenue Card is the exclusive property of the Pennsylvania Turnpike Commission (PTC) and is provided to the recipient in furtherance of responsibilities as a PTC business partner. Upon demand from the PTC, the recipient will be required to immediately return the Non- Revenue Card to their immediate PTC point of contact who will then forward it to the Facilities Access Coordinator. Each recipient is required to sign the Non-Revenue Non-Employee Card Use Agreement. The Recipient shall not duplicate or alter the Non-Revenue Card, or loan, give possession of or misuse the Non-Revenue Card in any way that would violate any policy or procedure governing issuance or use of the Card. The recipient shall be responsible for any and all costs and expenses incurred by the PTC, including but not limited to, lost revenue as a result of unauthorized use. Unauthorized use may [1]

240 result in any or all of the following: loss of non-revenue privileges, charges of fare evasion pursuant to 75 Pa. C.S. Section 6110 or other charges pursuant to the Crimes Code. Interchange restrictions and a two-year expiration date will apply to all cards issued unless otherwise specified. Cards may be renewed upon expiration when PTC approval has been provided in writing to the Facilities Access Coordinator via the mailbox for Card\Key Access and Repairs. D. DEFINITIONS: Non-Revenue Card: An official identification card issued by the PTC to non-ptc employees that displays the company or individual s name, an identification number and interchange restrictions (as applicable) which may be presented at any cash-accepting toll booth to obtain toll-free passage when traveling the Pennsylvania Turnpike system to conduct official PTC business. Unauthorized Use The use of the Non-Revenue Card for purposes other than in the furtherance of Commission business while traveling on the Pennsylvania Turnpike system to include duplication or alteration of the card or loaning, transferring or giving possession of the Card to an unauthorized individual. E. PROCEDURES: Requests for Non-Revenue Cards must be approved by the immediate PTC point of contact and the PTC Department Head for the department in charge of the work or project. Upon approval, the request should be forwarded for further approval and processing to the mailbox for Card\Key Access and Repairs. The PTC department in charge of the work or project is responsible to designate a new point of contact for the assigned Non-Revenue Cards and notify the Facilities Access Coordinator within 30 days should the original requestor separate from PTC employment. A $50 deposit is required for certain Non-Revenue Cards. This deposit will be reimbursed for cards returned to the Facilities Access Coordinator no later than six (6) months past the expiration date on the cards. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

241 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.14 APPROVAL DATE: EFFECTIVE DATE: Non-Revenue Cards for PTC Employees Facilities and Energy Management Operations REVISED DATE: A. PURPOSE: To establish a policy to govern the issuance and usage of Non-Revenue Cards for employees of the Pennsylvania Turnpike Commission (PTC). B. SCOPE: This policy applies to all PTC employees including full-time, supplemental, annuitants and summer interns. C. GENERAL POLICY: Employee Non-Revenue Cards will be issued for official Turnpike business only except as provided otherwise herein. Free passage on the Turnpike is a non-transferrable privilege that does not under any circumstances extend to family members or any other individuals. Only the individual to whom the Employee Non-Revenue Card is issued may use it while traveling on the Pennsylvania Turnpike system. The Employee Non-Revenue Card is the exclusive property of the Pennsylvania Turnpike Commission (PTC) and is provided to the recipient in furtherance of responsibilities as a PTC employee. Upon demand from the PTC, the recipient will be required to immediately return the Employee Non-Revenue Card to his/her supervisor who will then forward it to the Facilities Access Coordinator. Each recipient is required to sign the Employee Non-Revenue/Identification Card Use agreement. The Recipient shall not duplicate or alter the Non-Revenue Card, or loan, transfer, give possession of or misuse the Non-Revenue Card in any way that would violate any policy or procedure governing issuance or use of the Card. The Recipient shall be responsible for any and all costs and expenses incurred by the PTC, including but not limited to, lost revenue as a result of unauthorized use. Unauthorized use may result in any or all of the following: loss of non-revenue privileges, disciplinary action up to and including termination, charges of fare evasion pursuant to 75 Pa. C.S. Section 6110, or other charges pursuant to the Crimes Code. All Pennsylvania Turnpike Commission employees possessing a Non-Revenue Card have a responsibility while traveling the Turnpike to render whatever assistance they can safely provide [1]

242 when requested by customers or other Turnpike employees providing their actions do not place their own, or any customer's, safety in jeopardy. Continued efforts regarding customer service by all employees contribute to our joint responsibility for customer satisfaction. Additionally, it is the responsibility of each employee of the Pennsylvania Turnpike Commission, particularly those who travel the Turnpike either in their own vehicles or in PTC Assigned Vehicles, to report any vehicle they observe operating in a hazardous or reckless manner to the Traffic Operations Center. D. DEFINITIONS: Employee Non-Revenue Card: 1. An official employee badge issued by the PTC that displays an employee's photograph, name, and identification number programmed to permit access through use of a card reader. The badge may be presented at any cash-accepting toll booth to obtain toll-free passage when traveling on the Pennsylvania Turnpike system. 2. An official Non-Revenue card issued by the PTC that displays the employee s name and identification number programmed to permit access through use of a card reader. The card may be presented at any cash-accepting toll booth to obtain toll-free passage when traveling on the Pennsylvania Turnpike system. Unauthorized Use - The use of the Employee Non-Revenue Card for purposes other than in the furtherance of the employee's Commission responsibilities while traveling on the Pennsylvania Turnpike system to include duplication or alteration of the card or loaning, transferring or giving possession of the Card to an unauthorized individual. PTC Assigned Vehicles - Vehicles assigned to employees of the Pennyslvania Turnpike based on the employee's position or employee's job responsibilities to be used in furtherance of their job duties. E. PROCEDURES: Notification of customers needing assistance, accidents, unsafe or unusual conditions, or vehicles observed operating in a hazardous manner should be reported to the Traffic Operations Center via cell phone (*11 or ) or at the nearest Turnpike maintenance building, or at any toll plaza. Employees with radio or cell phone capability should remain at the incident scene to maintain communications with the Traffic Operations Center until the arrival of responding units. The employee reporting a hazardous driver shall furnish the following information to the Traffic Operations Center: milepost, direction of travel, make of vehicle and color, license plate number and action of vehicle (reckless driving, high speed, etc.). Reporting a vehicle operating in a hazardous manner is the only action that will be required. Pursuit of any vehicle should not be made. The Non-Revenue Card holder must notify his/her supervisor and the Facilities Access Coordinator if his/her Non-Revenue Card is lost, stolen, or damaged within forty-eight (48) hours of discovery. There is a charge of five ($5) dollars to the Recipient for replacement of lost or stolen Cards. Employees must return the Non-Revenue Card to their supervisor at the time of separation from employment with the Commission and must complete and submit an Employee ID Card [2]

243 Request/Return Form along with the Card The employee's supervisor is responsible for forwarding the Card and the Employee ID Card Request/Return Form to the Facilities Access Coordinator. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

244 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.15 APPROVAL DATE: EFFECTIVE DATE: Continuing Disclosure Finance and Administration REVISED DATE: A. PURPOSE: To establish a policy to assist the Commission in maintaining its compliance with federal securities laws pertaining to the issuance of municipal securities (Commission bonds). B. SCOPE: This policy shall apply to all publicly offered Commission municipal securities which are subject to federal securities laws and/or continuing disclosure agreements (defined below). C. GENERAL POLICY: It is the policy and objective of the Commission to ensure that the Commission s financial and other Commission Disclosures (defined below) comply with all applicable securities laws, satisfy in a timely manner all contractual obligations undertaken by the Commission pursuant to Continuing Disclosure Agreements (defined below) or otherwise, and adhere to best practices for disclosure. D. DEFINITIONS: Annual Financial and Operating Information means the financial information and operating data (other than the CAFR or the Commission s audited financial statements), relating to the applicable bond program of the Commission (e.g., senior Mainline Turnpike Revenue Bonds, Subordinated Turnpike Revenue Bonds, Motor License Fund Enhanced Bonds, Oil Franchise Tax Revenue Bonds, Registration Fee Revenue Bonds) required to be filed by the Commission at least annually with EMMA pursuant to one or more CDAs (defined below). Bonds means bonds, notes or other obligations constituting securities payable from funds of the Commission (which may include, without limitation, funds appropriated by the Pennsylvania Legislature or other non-toll revenues pledged as security for such obligations). CAFR means the Comprehensive Annual Financial Report of the Commission which contains the Commission s audited financial statements. Commission Disclosure means the Commission Primary Disclosure and/or the Commission Secondary Disclosure, as the context may require. [1]

245 Commission Disclosure Contacts is defined in Section E.2.(i) hereof. Commission Disclosure Counsel means, an outside attorney, or firm of attorneys, with a reputation for expertise in disclosure matters related to municipal securities, who may advise the Commission in connection with the preparation of Commission Disclosure. Commission Primary Disclosure 1 means the Commission s documents and materials prepared, issued, or distributed in connection with the Commission s disclosure obligations under applicable securities laws in connection with the offer and sale of Bonds, including, any preliminary offering statement, final offering statement, any amendments or supplements thereto (including any postissuance amendment or supplement disseminated during an underwriting period), any registration statement or other filing by the Commission with a securities regulator and any related investor presentation. Commission Secondary Disclosure means the Commission s documents and materials, other than Commission Primary Disclosure, prepared, issued, filed or distributed, as applicable, in connection with the Commission s contractual obligations under CDAs or disclosure obligations under applicable securities laws or that could potentially subject the Commission to liability under applicable securities law consisting of any: (i) Annual Financial and Operating Information, (ii) CAFR (or financial statements), (iii) Event Notice, (iv) Voluntary Filing, (v) posting by the Commission on the investor relations page of the website of the Commission; and (vi) other disclosure document, other than Commission Primary Disclosure, that is reviewed and approved in accordance with the Disclosure Procedures. Continuing Disclosure Agreement or CDA means the continuing disclosure agreement or undertaking to provide Annual Financial and Operating Information and Event Notices as described in Rule 15c2-12. Disclosure Procedures is defined in Section E.1 hereof. EMMA means the Electronic Municipal Market Access system maintained by the Municipal Securities Rulemaking Board or any successor entity. Event Notice means one or more of the events described in a CDA of which notice is required to be filed with EMMA. Rule 15c2-12 means Securities Exchange Act Rule 15c2-12, as amended from time to time. Voluntary Filing means a notice or information filing made relating to Bonds or the Commission which is not required to be filed by Rule 15c2-12, but is voluntarily filed with EMMA. 1 In the event the Commission prepares other disclosure documents (e.g., in connection with a tender offer made for the purchase of Bonds by, or on behalf of, the Commission), such documents shall be addressed by the Disclosure Procedures. [2]

246 E. PROCEDURES: 1) OVERALL IMPLEMENTATION RESPONSIBILITY. The Commission s Chief Financial Officer ( CFO ) is hereby designated to oversee the development, establishment and implementation of written procedures necessary or convenient to implement this Disclosure Policy ( Disclosure Procedures ). The Disclosure Procedures may be amended or supplemented from time to time as set forth therein. 2) KEY PARTICIPANTS: COMMISION DISCLOSURE CONTACTS; THE DISCLOSURE OFFICERS GROUP; COMMISSION DISCLOSURE COUNSEL. i) Commission Disclosure Contacts. The Disclosure Procedures shall identify Commission officials and employees, together with applicable designees (each a Commission Disclosure Contact ), who shall assist in updating and developing Commission Disclosure as further set forth in the Disclosure Procedures. ii) Disclosure Officers Group. The Disclosure Procedures shall provide for a Disclosure Officers Group, composed of Commission officials and employees specified in accordance with the Disclosure Procedures, which, under the direction of the CFO (or such other officer as set forth in the Disclosure Procedures), shall have general oversight of, and responsibility for implementation of, the entire disclosure process. The duties of the Disclosure Officers Group shall be specified in the Disclosure Procedures and, at a minimum, shall include: (i) organizing and coordinating diligence meetings of a Commission internal diligence working group whose members shall be specified in accordance with the Disclosure Procedures; and (ii) overseeing the preparation and review of Commission Disclosure prior to dissemination. iii) Role of Commission Disclosure Counsel. Commission Disclosure Counsel will be consulted in connection with the Commission s preparation and dissemination of Commission Disclosure to the extent specified by the Disclosure Procedures and at the discretion of the CFO. 3) COMMISSION PRIMARY DISCLOSURE: UPDATES OF COMMISSION DISCLOSURES FOR THE ISSUANCE OF BONDS. The Disclosure Procedures shall address the preparation of Commission Primary Disclosure including the collection, review and internal certification of information for the Commission Primary Disclosure and the approval and public dissemination thereof. 4) COMMISSION SECONDARY DISCLOSURE: CONTINUING DISCLOSURE (ANNUAL FINANCIAL AND OPERATING INFORMATION, CAFR, EVENT NOTICES), VOLUNTARY FILINGS. The Disclosure Procedures shall address the preparation of the Commission s Secondary Disclosure, including: (i) the collection, review and internal certification of information for the Annual Financial and Operating Information and the approval and public dissemination thereof; (ii) the review and [3]

247 approval of the Letter of Transmittal and the Management s Discussion and Analysis to be included in the CAFR; (iii) the process for Commission officials and employees to monitor the occurrence of, and identify, events that may give rise to the need to file an Event Notice and the preparation, approval and public dissemination of Event Notices; and (iv) preparation, approval and public dissemination of Voluntary Filings. 5) TRAINING. The Disclosure Procedures shall address training of applicable Commission officials and employees as determined by the CFO (which may be conducted internally or by outside providers, including, without limitation, any Commission Disclosure Counsel) regarding the purposes of this Disclosure Policy, the Disclosure Procedures and securities laws disclosure obligations. 6) DOCUMENT RETENTION. The Disclosure Procedures shall address record keeping and the retention of documents necessary or convenient to document the Commission s compliance with this Disclosure Policy, the Disclosure Procedures and related disclosure obligations. 7) MISCELLANEOUS AND GENERAL PRINCIPLES. i) Commission Use Only. This Disclosure Policy and the Disclosure Procedures are intended for the use of the Commission and are not intended to create any rights in any person other than the Commission. No expectation, however, should be established that the provisions of this Disclosure Policy or the Disclosure Procedures will not be altered, supplemented, waived, replaced, or repealed, in whole or in part, if, in the sole discretion of the Commission or if applicable, its officials, any such action is in the Commission s interests. ii) Periodic Review of Disclosure Procedures. The Disclosure Procedures shall provide for their periodic review by the Disclosure Officers Group to evaluate the effectiveness of the Disclosure Procedures, and make recommendations to the CFO as to whether revisions or modifications to the Disclosure Procedures are appropriate. 34 This Policy Letter supersedes all previous Policy Letters on this subject. [4]

248 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 8.01 APPROVAL DATE: EFFECTIVE DATE: Acceptable Use of Commission Technology Resources Information Technology REVISED DATE: A. PURPOSE: The purpose of this policy is to inform Pennsylvania Turnpike Commission (Commission) authorized users of the policies, responsibilities and procedures related to the acceptable use of Commission Technology Resources. Every effort must be made to ensure the confidentiality, integrity, and availability of Commission information assets and to assist the Commission in complying with applicable state and federal laws. All Commission authorized users are required to read this policy and sign the applicable Acceptable Use of Technology Resources Acknowledgment form to verify their understanding of this policy. B. SCOPE: This policy applies to all Commission authorized users, including full-time, temporary, supplemental and summer employees ( Employees ), and contractors, and independent consultants ( Contractors and Consultants ) (collectively referred to as Authorized Users ). This policy should be read in conjunction with the Commission s Code of Conduct. C. GENERAL POLICY: Acceptable Use of Commission Technology Resources ( Technology Resources ) by Authorized Users. This policy is designed to prevent use that may be illegal, unlawful, abusive, or which may have an adverse impact on the Commission or its Technology Resources. In addition, it identifies the permissible and effective uses of Technology Resources. Abuse or misuse of Technology Resources. The improper use of Technology Resources by Employees may result in disciplinary action, up to and including termination of employment. The improper use of technology resources by Contractors or Consultants may result in disciplinary action that may include termination of engagement, and other formal action under the terms of the applicable contract or debarment under the Commonwealth Contractor Responsibility Program. When warranted, the Commission may pursue or refer matters to other authorities for criminal prosecution against anyone who violates local, state or federal laws through the misuse of Technology Resources. Violations of this policy are to be referred to the Information Security Office or the Compliance Department. Authorized Users are encouraged to assist in the enforcement of [1]

249 these standards by promptly reporting any observed violations to the Information Security Office or the Compliance Department (e.g. the Fraud and Abuse Hotline). Violations of this policy may not be investigated independently by individuals or departments. Ownership of Technology Resources. All Technology Resources are the sole and exclusive property of the Commission. Authorized Users have no property or other rights to any Technology Resource and do not control the access to or the use of Technology Resources. Authorized Users have no expectation of privacy when using Technology Resources. Authorized Users have no expectation of privacy in any electronic files, data or records stored on or accessed through Technology Resources nor in any communications sent or received via, or stored within, Technology Resources. Authorized Users may not access unauthorized data and should take measures to protect the security of their data. As part of the privilege of being an Authorized User, Authorized Users may not attempt to access any data or Technology Resources for which they do not have authorization or explicit consent. Authorized Users must use passwords and/or encryption in a manner that is consistent with Commission technology standards. Authorized Users must keep passwords secure and must not share them with others. During the normal workday, the lock computer feature must be used to protect the workstation in order to prevent unauthorized access. An individual who has been assigned a portable computing device, such as a laptop, tablet or smartphone, must not leave the computing device unattended in unsecured/public areas. Authorized Users must maintain the confidentiality of sensitive data. The unauthorized access to, disclosure or dissemination of Commission or other sensitive, privileged or confidential information, including, but not limited to, personally identifiable, protected health, attorneyclient privilege or financial information, is not permitted. Information that is transmitted over public networks may be intercepted, or modified by persons other than the intended recipients of that information. Therefore Authorized Users must use a Commission provided Virtual Private Network (VPN) connection when transmitting confidential or sensitive information over a public network. Appropriate precautions as prescribed by the Information Security Office must be taken when sending Commission confidential or other sensitive information to an external recipient. Individuals shall not make unauthorized copies of confidential, sensitive or privileged information. The Commission provides applications to support business purposes. These Commission applications also help to ensure the confidentiality of sensitive data, prevent data loss, and support records management requirements. Authorized Users should use Commission provided business applications (including ) when conducting Commission business. Further, if a user is notified that Technology Resources in his or her possession are subject to a litigation or records hold, s/he must take the steps necessary to comply with the hold requirements. Technology Resources are intended for business use and should be used primarily for that purpose. Technology Resources are tools that the Commission has made available for Commission business purposes. Where personal use of Technology Resources does not interfere with the efficiency of operations and is not otherwise in conflict with the interests of the Commission, limited use for personal purposes is permitted consistent with other Commission policies and the standards set forth in the Commission s Code of Conduct. Streaming of non- [2]

250 business media at the workplace is not permitted. The use of Technology Resources to operate a personal business, for personal gain in any form, or for other inappropriate use is prohibited. Any personal use which is inconsistent with Commission policy or law is prohibited. Examples of unacceptable personal use may be communicated from time to time and will have the same force and effect as if specifically listed in this policy. Technology Resources must never be used in a manner that violates Commission policies. The use of Technology Resources to send, view, access, download, store, display, print, or otherwise disseminate material that is sexually explicit, suggestive or pornographic, profane, obscene, threatening, discriminatory, harassing, fraudulent, otherwise offensive, defamatory, or unlawful is strictly prohibited. The use of Technology Resources to degrade performance, deprive access to a corporate resource, or gain access to a system or information for which proper authorization has not been given is also strictly prohibited. All Authorized Users must be provided with this directive. All Authorized Users shall be provided a copy of this policy and are required to read and sign the applicable Acceptable Use of Technology Resources Acknowledgment form to verify their receipt and understanding of this policy. Employees are required to sign the form provided as Attachment A, and Contractors and Consultants are required to sign the form provided as Attachment B, prior to their use of or access to Technology Resources. Copies of this policy may be provided either electronically or in hard copy. D. DEFINITIONS: Authorized Users - Any employee who receives compensation from the Commission on an hourly, daily, or annual basis including full time, part time or probationary or is authorized by statute ( Employees ), and Contractors and Independent Consultants that use or have access to Commission Technology Resources. Technology Resources - Commission Technology Resources include, but are not limited to, the following: all data and records, including those pertaining to computer use, internet use, communication and other electronic communication (whether sent, received, or stored), as well as the content of such communications; Commission s computer systems, together with any electronic resource used for communications, which includes but is not limited to laptops, individual desktop computers, wired or wireless telephones, cellular phone, smartphones, tablet computers, servers, virtual machines, routers/switches, etc. and further includes use of the internet, electronic mail ( ), instant messaging, texting, voice mail, facsimile, copiers, printers or other electronic messaging through Commission facilities, equipment or networks. E. PROCEDURES: For Authorized Users The Information Security Office and Human Resources must work together to ensure that all Authorized Users read this policy and sign the applicable Acceptable Use of Technology Resources Acknowledgment form to verify their receipt and understanding of this policy. Employees are required to sign the form provided as Attachment A and Contractors and Consultants are required to sign the form provided as Attachment B. Copies of signed forms will be maintained as part of the Employee s official personnel file or, in the case of Contractors and Consultants, in the Information Security Office s files. [3]

251 For New Employees Human Resources will notify the Information Security Office regarding an employee s start date and position. Information Security will: o Verify the Technology Resources that the employee will need in his/her position. o Create a user account and assign required access privileges. On or before the new employee s start date, Human Resources will notify the Information Security Office that they are in receipt of a signed Acceptable Use of Technology Resources Policy acknowledgement form from the new employee. The Information Security Office will then provide the new employee s manager with related Technology Resources login information. Note: This information will not be given to the employee s manager until Human Resources verifies receipt of the new employee s signed acknowledgement form. For Contractors and Consultants The Commission employee responsible for managing a contractor or independent consultant shall submit a request (using IT s established service desk process) to provide the contractor or independent consultant with access to required Technology Resources at least three (3) business days prior to the contractor s or independent consultant s arrival. Information Security will send a request for approval to the CEO/COO s direct report in the department in which the contractor or independent consultant will be working and remind the direct report that the Acceptable Use of Technology Resources Policy Acknowledgement form must be signed by the contractor or independent consultant and returned to the Information Security Office before any Technology Resource access shall be provided. Upon receipt of the direct report s approval and the signed Acceptable Use of Technology Resources Policy Acknowledgement form, the contractor or independent consultant will be provided with the requested access privileges and the Information Security Office will provide the employee who initiated the request with the Technology Resources login information. Contractors and Consultants and the employee responsible for managing the Contractor s and Consultant s engagement must notify the Information Security Office upon the termination of the engagement for which the Contractor and Consultant obtained access to Commission Technology Resources. Upon notification, the Information Technology Department will remotely remove all Commission applications and data from the device. The Commission may, in its sole discretion, also terminate access to Commission Technology Resources at any time. [4]

252 Exceptions. Any exception to this policy must be approved in advance by the Chief Information Officer (CIO). Attachment A This Policy Letter supersedes all previous Policy Letters on this subject. [5]

253 Acceptable Use of Technology Resources Policy Employee Acknowledgement I hereby acknowledge that I have received, read, and understand the attached Acceptable Use of Technology Resources Policy, and agree to abide by the requirements set forth in it. I understand that disciplinary action, up to and including termination, may be taken if I fail to abide by the requirements of this agreement. I further understand that my Commission Technology Resource usage, including electronic communications such as , voice mail, text messages and other data and records, may be accessed and monitored at any time, with or without advance notice to me. I understand that if I need further clarification or additional information, I may contact the Information Security Office. The Commission can, at any time, and in its sole discretion, modify this user agreement and require mobile device users to reconfirm their agreement to abide by and comply with the terms of the modified agreement. Print Name Signature Date [6]

254 Attachment B Acceptable Use of Technology Resources Policy Contractor or Independent Consultant Acknowledgement This user agreement does not prohibit contractors or consultants from performing services required by their contract with the Commission. I hereby acknowledge that I have received, read, and understand the Acceptable Use of Technology Resources Policy, and agree to abide by the requirements set forth in it. I understand that the Commission may revoke my privileges at any time for any reason, and/or take appropriate action as specified in my contract with the Commission, as well as under the Commonwealth s Contractor Responsibility Program. I further understand that my Commission Technology Resource usage, including electronic communications such as , voice mail, text messages and other data and records, may be accessed and monitored at any time, with or without advance notice to me. I further understand that if I need further clarification or additional information, I may contact the Information Security Office. The Commission can, at any time, and in its sole discretion, modify this user agreement and require mobile device users to reconfirm their agreement to abide by and comply with the terms of the modified agreement. Print Name Company Signature Date [7]

255 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 8.05 APPROVAL DATE: EFFECTIVE DATE: Licensed Software Use Information Technology REVISED DATE: A. PURPOSE: The Pennsylvania Turnpike Commission (PTC) licenses the use of computer software from a variety of software vendors. Such software is normally copyrighted by the software developer and, unless expressly authorized to do so, the PTC has no right to make copies of the software except for backup or archival purposes. The purpose of this policy is to prevent copyright infringement and to protect the integrity and productivity of the PTC s computer environment. B. SCOPE: This policy applies to all members of the PTC workforce, including full-time, temporary, supplemental, summer, and contract employees, independent consultants, visitors or other agents who operate any PTC owned end user computing or communication device including, but not limited to, desktops, workstations, laptops and smart-phones. C. GENERAL POLICY: It is the policy of the PTC to respect all computer software copyrights and to adhere to the terms of all software licenses to which the Commission is a party. The Chief Information Officer or his designee is charged with the responsibility for monitoring compliance with the policy. PTC employees may not duplicate any licensed software or related documentation unless the PTC is expressly authorized to do so by agreement with the licensor. Unauthorized duplication of software may subject employees or the PTC to civil and criminal penalties under the United States Copyright Act. Anyone found copying software other than for backup purposes is subject to disciplinary action up to and including termination. Employees may not give software to any outsiders including: clients, contractors, customers, and others. PTC employees may use software on information systems only in accordance with applicable license agreements and they are obligated to comply with the terms described under 8.1 Electronic Communication Acceptable Use Policy. [1]

256 The PTC s computers are company assets and must be kept both software legal and virus free. Only software purchased through the procedures outlined below and installed the IT technicians may be used on PTC computer assets. Employees are not permitted to bring software from home and load it on PTC computers or run it from auxiliary drives. PTC owned software cannot be taken home and loaded on an employee s home computer. In special circumstances, PTC management may authorize the loading of PTC owned software on non- PTC computers as long as the licenses are properly paid and recorded. Under no circumstances are those persons in the scope of this policy to download, install, copy, access, execute or otherwise employ any of the following: Illegal software or programs, Unlicensed software, Unapproved or unlicensed operating systems, Pirated software, Software purchased for personal or home use. D. DEFINITIONS: Standard Software. The Information Technology (IT) Department has established software standards for the desktop environment to control integration with custom applications, to maintain acceptable levels of support, and to minimized training requirements. The standard software, tools and utilities are published on the PTC Intranet in the Information Technology Department Technology Infrastructure Desktop Operations Section. Updates and patches are applied to these standards as appropriate. Unless an extraordinary need exists, no competing software shall replace the established software standard. Exception Software. Exception software is used primarily by a person or work unit to perform tasks that cannot be accomplished by use of the standard suite of software. The majority of this software will be loaded directly to the employee s hard drive by an IT technician without alteration to the hardware or existing software. Shareware/Freeware. Shareware software is copyrighted software that is distributed freely through the Internet. It is the policy of the PTC to pay shareware authors the fee they request for use of their products. The acquisition and installation of shareware/freeware products should be handled the same way as commercial software products. Employee. In the context of this document, employee means everyone listed in the Scope section of the policy. E. PROCEDURES: Employee Orientation/Awareness. New PTC employees shall be made aware of this policy by the Human Resources Department. Acquisition of Software. To purchase or evaluate software, employees must follow the IT Request procedure. The request is reviewed by the Information Technology Department to ensure that the software is compatible with existing PTC standards and systems and that it can be maintained and supported. All software acquired by the PTC must be purchased [2]

257 through the Purchasing Department or another approved method. Software acquisition channels are restricted to ensure that the PTC has a complete record of all software purchased for PTC computers and to evaluate, support and upgrade such software accordingly. Installation of Software. Software may be installed or reinstalled electronically by IT technical staff using approved distribution tools. Manual installation or reinstallation of software must be performed by IT technical staff after approved by the IT Request or Service Call procedure. IT technical staff may install specialized software tools to resolve Service Desk tickets or for software research and testing. Original software media shall be kept in a safe storage area maintained by Information Technology. Manuals, tutorials and other user materials are generally available online. Additional training may be requested through the IT Request procedure. Periodic Audits. Electronic client machine audits are conducted regularly or periodically to ensure that the PTC is complying with all software licenses. During an audit, the PTC will search for unauthorized software and eliminate any that is found. The software will be uninstalled electronically if possible without notification or by a qualified IT technician. Either process may result in the employee s computer being re-imaged. The violation will be reported to the employee s supervisor and the Chief Information Officer. If requested, users must surrender in a timely manner software licenses, software disks, CD-ROMs and DVDs and other software and application materials deemed out of compliance with this policy and discontinue its use. Reports of Suspected Violations. Any employee who determines that there may be a misuse of software within the PTC shall notify their department manager, the Inspector General or legal department. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

258 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 8.06 APPROVAL DATE: EFFECTIVE DATE: Records Management Policy Information Technology REVISED DATE: A. PURPOSE: The Records Management Policy is intended to: Ensure that the PTC complies with legal requirements for records (e.g. litigation, government investigations, and audits); Ensure that employees maintain only those records that are needed for legal compliance and that support current PTC operations; Ensure that employees maintain only Official PTC Records and minimize retention of non-critical documents (i.e., Convenience Copies) immediately upon expiration of their active, useful value; and establish a consistent and cost-effective Records Management Program throughout the PTC. B. SCOPE: The Records Management program applies to all PTC records maintained in any form or format (e.g. physical form such as paper, map, or book, or information maintained or stored electronically on items such as laptops, handheld devices, and flash drives). C. GENERAL POLICY: Records Retention Schedule The PTC Records Retention Schedule, as approved by the Commission, describes Records Classes and their retention periods. Keep Official PTC Records for as long as stated in the Records Retention Schedule and do not destroy Official PTC Records earlier than stated. Destroy Official PTC Records after the duration of the stated retention period unless a Litigation Hold is in place (i.e. upon the issuance of a Litigation Hold or Mandatory Preservation Notice, suspend all record destruction procedures). Department head and employee responsibility - Department heads are responsible for ensuring that their respective departments implement and remain compliant at all times with the requirements of this policy. Employees are responsible for determining if information, maintained [1]

259 in any form or format (physically or electronically), falls under the PTC Records Retention Schedule. Employees are also responsible for determining if information on voice mail, , instant messaging, or the phone system falls under the PTC Records Retention Schedule. Failure to adhere to Litigation Holds or Mandatory Preservation Notices could result in discipline up to and including termination. Amendments to the Records Retention Schedule The PTC Records Retention Schedule shall be amended as necessary so that all Official PTC Records are covered by a Records Class and that all retention periods reflect legal requirements for records and support of PTC operations as applicable. Ownership - All PTC business-related documents and records are the sole property of the PTC, and employees have no expectation of personal or property right to these documents and records, including those created by the employee. Record Creation and Destruction - All Official PTC Records should be created with a specific purpose to communicate or document PTC business matters. Employees should use discretion and professionalism when creating records to ensure that the records appropriately reflect the business interests of the PTC. Employees should act as if every PTC business record that they create is discoverable in litigation regardless of the record s storage medium (including electronic records) and regardless of the record s physical location. Approved Locations - Records shall remain on PTC premises or at PTC-approved locations. Records must never be permanently stored at employees' homes. However, the temporary use of PTC records at home is acceptable when a management approved legitimate business need exists. The PTC has locations to store the PTC s inactive records; employees should send only those inactive records as defined by the Retention Schedule to these locations. Security and Access - All employees are responsible for protecting the confidentiality of PTC records and preventing unauthorized disclosure to anyone, including PTC employees, without a need to know. Only designated employees may request records from storage. Employee access to records is limited to records owned by the employee s department. Those departments that require access to records owned by another department must contact the appropriate department directly to request such access. Records must not be permanently stored on mobile computing devices. If a business need exists, records may be temporarily stored on a device, however immediately after use these records must be removed from the device and stored on the PTC network according to the PTC Retention Schedule. D. DEFINITIONS: Convenience Copies - Copies created for the convenience of business users; Convenience Copies must not be kept longer than the Official PTC Record. Litigation Hold (also known as Mandatory Preservation Notices) Suspension of all document destruction procedures where there is pending or imminent litigation, government investigation, subpoena, tax hold, audit, or other consideration. [2]

260 Official PTC Record Information, regardless of physical form or characteristics, that documents a transaction or activity of the PTC and that is created, received, or retained pursuant to law or in connection with a transaction, business, or activity of the PTC. The term Official PTC Record includes a document, paper, letter, map, book, tape, photograph, film or sound recording, information stored or maintained electronically, and a data-processed or image-processed document. The term Official PTC Record excludes transitory records (which are records that have little or no documentary or evidential value and that need not be set aside for future use; have short term administrative, legal, or fiscal value and should be disposed of once that use has expired; or are only useful for a short period of time). PTC Records Management Working Committee - Members consist of representatives from Legal, Audit, Information Technology, Finance, and Engineering to provide the following competencies: knowledge of legal requirements, audit procedures, PTC information technology system capabilities, and PTC operations and business practices. Records Class A grouping by topic of Official PTC Records that have a retention period as listed in the Records Retention Schedule. Records Retention Schedule A document that describes the PTC Records Classes and the retention periods for those Records Classes. The retention periods reflect legal requirements, legal considerations (e.g. limitation periods), PTC business needs, and business best practices. A. PROCEDURES: The PTC Records Retention Schedule and the PTC Records Management Procedures Manual shall be kept current on the PTC Intranet. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

261 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 8.07 APPROVAL DATE: EFFECTIVE DATE: Mobile Device Policy Information Technology REVISED DATE: A. PURPOSE: This policy governs the assignment of Commission-owned mobile devices to staff and the use of those devices to access Commission Technology Resources, and also provides guidelines for the use of employee-owned mobile devices, including smartphones and tablets, to access Commission Technology Resources. B. SCOPE: This policy applies to all Commission authorized users including full-time, temporary, supplemental, and summer employees ( Employees ), and contractors and independent consultants ( Contractors and Consultants ) who access Commission Technology Resources such as , documents, and Internet connectivity using Commission Managed Mobile Devices which include Commission-owned mobile devices, employee-owned mobile devices, and contractor/independent consultant-owned mobile devices (collectively Authorized Users ). C. GENERAL POLICY: 1. All Managed Mobile Devices: Any mobile device used to access Commission or other authorized applications and resources whether owned by the Commission, employees, or contractor/independent consultants must have the Commission s Mobile Device Management (MDM) solution installed on it to enforce security settings and to allow the Commission to manage Commission data including, but not limited to, , calendar entries, and Commission contacts in case the mobile device is returned, transferred, misplaced, lost, or stolen or in other circumstances as determined in the Commission s sole discretion. Authorized Users should recognize that their use of, or access to, data provided by or through Commission Technology Resources may be traced, audited, accessed, reviewed, and/or monitored by the Commission or its authorized agents at any time, with or without notice to the Authorized User. Authorized Users must accept that, when connecting a managed mobile device to Commission Technology Resources, the Commission s security policy will be applicable to the device. The security policy implemented may include, but is not limited to, areas such as passcode, passcode timeout, passcode complexity and encryption. [1]

262 An Authorized User will be allowed to utilize authorized Commission applications and resources provided that the Authorized User agrees to comply with and abide by this and any other Commission policy concerning electronic communications including, but not limited to, Policy 8.1 (Acceptable Use of Commission Technology Resources), and obtains the required management authorizations. The Commission, in its sole discretion, may terminate any and all connections to Commission Technology Resources without notification. The Commission provides applications to support business purposes. These Commission applications also help to ensure the confidentiality of sensitive data, prevent data loss, and support records management requirements. Authorized Users should use Commission provided business applications (including ) when conducting Commission business. Further, if a user is notified that Technology Resources in his or her possession are subject to a litigation or records hold, s/he must take the steps necessary to comply with the hold requirements. Authorized Users must take proper care of their managed mobile device(s). For example, these devices must not be left unattended in plain view, even for a short period of time; must not be left in a vehicle overnight; and must not be left unattended for any reason in vulnerable situations (e.g., public areas such as airport lounges, hotels and conference centers). Lost or stolen managed mobile devices must be reported to the Service Desk or Network Control within 24 hours or when reasonably practical. This notification must take place prior to any cancellation of mobile voice and data services associated with the device. Authorized Users must take appropriate precautions to prevent others from obtaining access to their Commission Technology Resources and data. Authorized Users must keep confidential, sensitive, or privileged information separate from personal data. Authorized Users shall not share with anyone assigned passwords, PINs or other credentials that provide access to Commission Technology Resources or share Commission data without authorization. Authorized Users must take all reasonable steps to protect against the installation of malicious applications. This includes, but is not limited to, applying patches and updates provided by the mobile device manufacturer/carrier as they are made available. Commission-managed mobile devices may not be rooted or jail-broken to allow the bypass of built-in security controls. Authorized Users are prohibited from typing, reading or sending any information from their device while driving. Authorized Users are prohibited from activating their device as a hot spot while at Commission facilities that have wireless capabilities. Authorized Users must comply with data copyright requirements. [2]

263 Authorized Users who do not comply with or abide by the policies detailed in this document shall be subject to revocation of the mobile device privileges. Employees may be subject to additional disciplinary action up to and including termination. Contractors and Consultants may be subject to additional actions as specified in their contract, as well as under the Commonwealth s Contractor Responsibility Program. 2. Commission-Owned Mobile Devices Mobile devices will be assigned to Authorized Users whose work location and/or job responsibilities require that they are available and reachable at all times or the assignment of a mobile device is determined to be operationally necessary by their direct report to the CEO/COO. These devices are Commission property and intended for Commission business but may be used for limited personal use in accordance with the Acceptable Use of Technology Resources Policy, the Commission s Code of Conduct, and other Commission policies. For voice capable devices, Authorized Users will be enrolled in a shared pool plan in which all Authorized Users will share a pool of minutes for the entire Commission. Authorized Users will also have access to any additional features offered by the mobile carrier s current contract with the Commission. Currently, this includes unlimited data and texting for devices that are capable of supporting data and texting. Plan details and additional capabilities are subject to change without notice. Authorized Users shall accept and may not change settings on the device that the Commission deems necessary to adequately secure the information on the device. Authorized Users acknowledge that any and all data on the device is subject to Commission review without notice. If a device is misplaced, lost, or stolen, the Authorized User must notify the Service Desk or Network Control within 24 hours or when reasonably practical. The Commission may, at its own discretion, remotely wipe all data from the device and shall not be held responsible for the loss of any personal data that may have been on the device. Authorized Users are responsible for protecting any personal data on the device. Authorized Users have no expectation of privacy when using Commission Technology Resources (including but not limited to information contained in text messages, s, photos, internet access, telephone calls, and call logs contained or reflected on the Commission-owned device), which may be reviewed, copied and monitored by the Commission and/or produced to others by the Commission at any time, with or without notice to the Authorized User. Phone records may be subject to audit to ensure compliance with all policies and procedures. Authorized Users shall surrender mobile devices and provide device access codes to the Information Security Office immediately upon request from the Information Security Office for audit, e-discovery, investigative or law enforcement purposes. Authorized Users may not wipe/erase Commission-owned mobile devices issued to them. [3]

264 Authorized Users may not share Commission-owned mobile devices with anyone outside the organization, including family, friends or business partners. Authorized Users may download and use applications from commercial or Commissionowned app stores provided the applications comply with Commission policies. Authorized Users are responsible for all costs not associated with and approved for Commission use including, but not limited to, personal applications and chargeable vendor features. All costs associated with mobile device cellular service will be charged to the Authorized User s department. Such costs include, but are not limited to, equipment, initiation fee, monthly fees, non-customary charges, maintenance and repair of equipment, and programming and replacement of lost, stolen or damaged equipment. 3. Employee-Owned Mobile Devices Employees wishing to use their personal device (i.e. BYOD) to access Commission or other authorized applications will require prior approval from their direct report to the CEO/COO. Initial access will be limited to Commission . Access to additional resources will require specific management approval. Employees may only use an authorized Commission client to access their Commission . Employees who are granted access to the Commission s applications and resources (including ) must allow the installation of the Commission s MDM software on their device. This product must be installed to allow the Commission to provide security settings and to allow the Commission to manage any Commission data, including but not limited to, , calendar entries, Commission contacts, and other Commission data, in case the mobile device is returned, transferred, misplaced, lost, stolen or under other circumstances as determined in the Commission s sole discretion. If a device is misplaced, lost, or stolen, the Employee must notify the Service Desk or Network Control within 24 hours or when reasonably practical. The Commission may, at its discretion, remotely wipe/erase all Commission data on the device. If requested by the Employee, the Commission may, in its sole discretion, also attempt to issue a complete wipe/erase of the device. The Employee may not cancel the mobile cellular service for the device until a remote wipe/erase of Commission data is completed. The Commission shall not be held responsible for any personal data or apps inadvertently deleted while attempting to manage Commission data. Upon termination of employment, or at any time within the Commission s sole discretion, the Commission may remotely remove all Commission applications and data from the device. The Commission assumes no responsibility for loss or damage associated with the use of an employee-owned device. Support for employee-owned devices, including backing up personal information and data, is the employee s responsibility. [4]

265 Employees must maintain a device compatible with the Commission MDM platform. If a device falls out of compliance, it will be blocked from accessing Commission and other authorized applications. The Commission will provide mobile device reimbursement for Commissioners, the CEO, COO and their direct reports. Upon recommendation from a direct report to the CEO/COO, and approval by the COO, other Employees may also receive reimbursement. The reimbursement will be a standard amount based on the current costs for a single line consumer plan from the Commission s preferred mobile carrier. No additional reimbursement will be provided for additional devices or actual costs above the provided amount. The reimbursement amount will be reviewed regularly by the Information Technology Department which will recommend adjustments as needed to the CEO. The Information Technology Department will maintain a list of all Employees receiving reimbursements. 4. Contractor/Independent Consultant Owned Mobile Devices The Commission, in its sole discretion, may make mobile access to Commission Technology Resources available through Contractor and Consultant-owned devices. In these instances, Contractors and Consultants must agree to and comply with all of the requirements identified for Employee-owned devices above. Contractors and Consultants and the employee responsible for managing the Contractor s and Consultant s engagement must notify the Information Security Office upon the termination of the engagement for which the Contractor and Consultant obtained access to Commission Technology Resources. Upon notification, the Information Technology Department will remotely remove all Commission applications and data from the device. The Commission may, in its sole discretion, also terminate access to Commission Technology Resources at any time. D. DEFINITIONS: Authorized Users - Any employee who receives compensation from the Commission on an hourly, daily, or annual basis including full time, part time or probationary or is authorized by statute ( Employees ), and Contractors and Independent Consultants that use or have access to Commission Technology Resources. BYOD Bring your own device (BYOD) is the policy of allowing employees to bring personally owned mobile devices to the workplace, and use those devices to access Commission Technology Resources. Managed Mobile Device A mobile device whether it is owned by the Commission or the Employee or a Contractor/Independent Consultant that is secured and managed by the Commission s Mobile Device Management solution. Mobile Device A communications device that transmits and receives data, text, and/or voice without being physically connected to a network. This definition includes but is not limited to such devices as Smartphones, Tablets, and voice only cell phones. [5]

266 Mobile Applications This refers to software designed for any or all the mobile devices defined in this policy. Mobile Device Management (MDM) The Commission s solution for securing and managing mobile devices that access Commission Technology Resources. Technology Resources Commission Technology Resources include, but are not limited to, the following: all Commission data and records, including those pertaining to computer use, internet use, communication and other electronic communication (whether sent, received, or stored), as well as the content of such communications; Commission s computer systems, together with any electronic resource used for communications, which includes but is not limited to laptops, individual desktop computers, wired or wireless telephones, cellular phone, smartphones, tablet computers, servers, virtual machines, routers/switches, etc. and further includes use of the internet, electronic mail ( ), instant messaging, texting, voice mail, facsimile, copiers, printers or other electronic messaging through Commission facilities, equipment or networks. Wi-Fi Hot Spot A feature on a mobile device that allows it to become a wireless Internet access point. E. PROCEDURES: 1. The Service Desk Request process will be used for all requests related to mobile devices. 2. Commission-Owned Mobile Devices may be assigned in accordance with the following guidelines: Requests to obtain mobile devices, additional or replacement equipment, or additional features, such as hot spot capabilities, must include work-related justification. A signed Mobile Device Policy Acknowledgement form (Attachment A or B, as appropriate) must be on file with the Information Technology Department. The device will be added to the Human Resources list of objects on loan assigned to the employee and must be surrendered upon the end of or suspension from employment or at any time within the Commission s discretion. Devices provided to Contractors and Consultants must be surrendered upon the conclusion of their engagement with the Commission or at any time within the Commission s discretion. 3. Employee-Owned Mobile Device Access to Commission and other authorized applications may be allowed in accordance with the following guidelines: Requests for authorization to access Commission and other authorized applications must include work-related justification for the access. [6]

267 A signed Mobile Device Policy Acknowledgement form (Attachment A) must be on file with the Information Technology Department. A signed Employee-Owned Mobile Device Reimbursement Request form (Attachment C) must be completed by Commissioners, the CEO, COO and their direct reports and forwarded to Payroll. 4. Contractor/Independent Consultant-Owned Mobile Device Access to Commission and other authorized applications may be allowed in accordance with the following guidelines: Requests for authorization to access Commission and other authorized applications must include work-related justification for the access. A signed Mobile Device Policy Acknowledgement form (Attachment B) must be on file with the Information Technology Department. 5. Support for mobile device access to Commission Technology Resources Full Support for Commission-Owned devices The Information Technology Department will support operating systems, hardware, connectivity, and Commission-approved applications. Limited support for Employee-owned and Contractor/Independent Consultant-owned devices Support is limited to Commission- managed applications. Primary support for user-owned devices is the user s responsibility. Users may be required to present their device to an IT support representative for installation or troubleshooting of Commission-managed applications. Other issues should be directed to the user s mobile device provider. Because of the numerous options that exist for both mobile devices and operating systems, there are no guarantees that any given application will work on a specific device. 6. Exceptions Any exception to this policy must be approved in advance by the Chief Information Officer (CIO). This Policy Letter supersedes all previous Policy Letters on this subject. [7]

268 Attachment A Mobile Device Policy Employee Acknowledgement I acknowledge that I have read Policy Letter 8.7, Mobile Device Policy, in full and understand the terms of use and my responsibilities as an Authorized User. I agree to abide by and comply with the terms of this policy and agree to fully and to the best of my ability comply at all times with the responsibilities of Users contained herein. I make no claims on the Commission to protect any personal data and fully understand that I have accepted the terms of this policy without coercion of any kind from my employer. I understand that violations of this agreement can result in revocation of Commission mobile device privileges, including BYOD eligibility, and may subject me to disciplinary action, up to and including termination. The Commission can, at any time, and in its sole discretion, modify this user agreement and require device users to reconfirm their agreement to abide by and comply with the terms of the modified agreement. Employee Name (printed): Employee Signature: Date: [8]

269 Attachment B Mobile Device Policy Contractor or Independent Consultant Acknowledgement I understand that this user agreement is not intended to interfere with contractors or independent consultants, such as myself, from performing services required by their respective contracts with the Commission. I hereby acknowledge that I have received, read, and understand the Mobile Device Policy, and agree to abide by and comply with the requirements set forth in it. I understand that the Commission may revoke my privileges at any time for any reason, and/or take appropriate action as specified in my contract with the Commission, as well as under the Commonwealth s Contractor Responsibility Program. The Commission can, at any time, and in its sole discretion, modify this user agreement and require mobile device users to reconfirm their agreement to abide by and comply with the terms of the modified agreement. Print Name: Company: Signature: Date: [9]

270 Attachment C Employee-Owned Mobile Device Reimbursement Request I acknowledge that I have read Policy Letter 8.7, Mobile Device Policy, in full and understand the terms of use and my responsibilities as an Authorized User. In accordance with that policy, I am requesting reimbursement for the use of my personally-owned device. I understand that the reimbursement being provided is a standard amount based on the current costs for a single line plan from the Commission s preferred mobile carrier and that no additional reimbursement will be provided for additional devices or actual costs above the provided amount. I understand further that the reimbursement amount will be reviewed regularly and adjusted as needed. I understand that reimbursements will be provided starting the first pay period after the start date provided below. I further understand that I can revoke this request by resubmitting this form with the Start Date left empty and providing an End Date. Name (Print) Employee ID Title Start Date Signature End Date (Leave blank unless you wish to stop Receiving reimbursements) [10]

271 POLICY POLICY SUBJECT: Voic PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: Information Technology NUMBER: 8.08 APPROVAL DATE: EFFECTIVE DATE: REVISED DATE: A. PURPOSE: To establish guidelines governing the appropriate administration and approval of the PTC s Voic system for all employees. B. SCOPE: This policy applies to all PTC employees who are granted Voic privilege. C. GENERAL POLICY: Voic is a privilege to be used for improving communications and customer service. D. DEFINITIONS: Voic is a vital communication link and a useful business tool designed to help, not replace people. E. PROCEDURES: 1. A written request detailing the compelling and authentic need for Voic must be submitted to the employee s department head and then to the respective Chief/Director of that department. 2. Upon approval of the Chief/Director, Voic privileges may be granted with the approval of the Chief Operating Officer and/or Chief Executive Officer. 3. The Chief Information Officer will then be notified of such approval. 4. Once approved, the employee will be scheduled for Voic training. 5. After appropriate training, Voic capabilities will be installed by the Information Technology Department. F. GUIDELINES: Voic greetings must be updated daily to include the current date, to identify yourself and give your current status and availability. When your phone is being answered by Voic , callers must be given the opportunity to speak with a person in that department and not be transferred to another person s Voic or to the receptionist. [1]

272 Voic will not be used when the employee is in his/her office. All messages must be acknowledged and processed in a timely and professional manner. Strict attention to and compliance with all instructions presented in the training manual is required. The discretion to defer and revoke Voic privileges rests with the Chief Operating Officer or the Chief Executive Officer. FAILURE TO ADHERE TO THE PTC VOIC POLICY WILL RESULT IN THE INTERRUPTION OR REVOCATION OF INDIVIDUAL VOIC PRIVILEGES. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

273 POLICY POLICY SUBJECT: Security Camera PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: Traffic Engineering and Operations, Information Technology NUMBER: 8.10 APPROVAL DATE: EFFECTIVE DATE: REVISED DATE: A. PURPOSE: The purpose of this policy is to regulate the use of security cameras in accordance with all applicable federal and state laws. The function of security cameras is to assist in protecting property, enhancing public and workforce safety, and contributing to efficient roadway operations. B. SCOPE: This policy applies to all members of the Pennsylvania Turnpike Commission (PTC) workforce, including full-time, temporary, supplemental, summer, and independent consultant and contractors. The following are excluded from this policy: Cameras installed or utilized for criminal and non-criminal investigations. Temporary construction project cameras. Cameras related to tolling operations; such as Violations Enforcement System (VES) or video tolling cameras. C. GENERAL POLICY: Security cameras may be installed in situations and places where the security of people, property, or PTC operations would be enhanced. When appropriate, cameras may be placed system-wide, inside and outside of PTC facilities. Cameras will be used in a manner consistent with all existing PTC policies. Unless specifically authorized by a court in accordance with federal or state laws, audio recording is prohibited. Camera use will be limited to situations that do not violate the reasonable expectation of privacy as defined by law. [1]

274 The Information Security Officer (ISO) will function as the Security Camera Coordinator. D. PROCEDURES: The PTC security request process will be used to review and approve the installation of new security cameras. Requests shall be submitted in writing to the ISO. Only personnel authorized through the PTC security request process will be given access to security camera data. This is especially applicable in cases where remote access is requested, since uncontrolled remote access will have a negative impact on the PTC Network. Authorized personnel may review the images from security camera data only as it relates to their job responsibilities. The PTC Video Management System will be jointly maintained by IT and the Operations Center. Camera requirements will be determined on a case by case basis, by business need, through the security request process. E. VIOLATIONS: Violations of this policy are to be referred to the Inspector General or Information Security Department to initiate the formal review process. Violations must not be investigated, independently, by individuals or departments. Individuals found to be in violation of this policy may be subject to disciplinary action, up to and including immediate termination. This Policy Letter supersedes all previous Policy Letters on this subject. [2]

275 POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 8.11 APPROVAL DATE: EFFECTIVE DATE: Information and Operational Technology (IT/OT) Standards Information Technology REVISED DATE: A. PURPOSE: It is important to the efficient operation of the Commission that technical standards pertaining to the planning, selection, acquisition, management, and security of Technology Resources are developed and governed by policy and that the Commission promotes an enterprise approach to the selection and management of information and operational technology (IT/OT). Because technology is continually changing and the standards and procedures can be highly technical in nature, this policy letter delegates the promulgation of such standards and procedures to the Commission s Information Technology (IT) Department. B. SCOPE: This policy applies to all departments within the Pennsylvania Turnpike Commission (PTC). PTC Department Chiefs/Directors are responsible for ensuring their staff, consultants and contractors adhere to all IT/OT standards and procedures. C. GENERAL POLICY: The IT Department shall be responsible for the timely development and promulgation of technical standards and procedures governing all IT/OT investments within the PTC in support of an enterprise approach to IT/OT, which maximizes the value of technology investments, ensures technical interoperability, promotes information security, and reduces functional duplication. The IT Department s processes for developing standards must include PTC departmental involvement and input through an IT governance process. D. DEFINITIONS: Technology Resources Commission Technology Resources include, but are not limited to, the following: all data and records, including those pertaining to computer use, internet use, communication and other electronic communication (whether sent, received, or stored), as well [1]

276 as the content of such communications; Commission s computer systems, together with any electronic resource used for communications, which includes but is not limited to laptops, individual desktop computers, wired or wireless telephones, cellular phone, smartphones, tablet computers, servers, virtual machines, routers/switches, desktop and mobile applications developed either in-house or through vendors. Technology Resources further includes use of the Internet, electronic mail ( ), instant messaging, texting, voice mail, facsimiles, copiers, printers or other electronic messaging through Commission facilities, equipment or networks, and also includes operational technology (OT), which consists of hardware and software that detects or causes a change through the direct monitoring and/or control of physical devices, processes and events in the enterprise. Information Technology The entire spectrum of technologies for information processing, including software, hardware, communications technologies and related services. Operational Technology Hardware and software that detects or causes a change through the direct monitoring and/or control of physical devices, processes and events across the commission. Procedure An established process to be followed in order to ensure actions comply with policies or standards. IT Procedures shall reference an IT Standard or PTC Policy Letter and shall be published/made available to internal PTC employees, consultants and independent contractors. Procedures that reveal details about the Commission s technology environment that, if disclosed, may introduce a security risk will have a more limited distribution. Standard A prescribed or proscribed specification, approach, directive, solution, methodology, product or protocol which must be followed. IT Standards shall be published/made available to internal PTC employees, consultants and independent contractors, as well the general public. E. PROCEDURES: The IT Department shall develop procedures for the timely development, maintenance and publication of IT standards and procedures. The procedures will include PTC departmental involvement and input through an IT governance process. Any exception to this policy must be approved by the Chief Information Officer (CIO). This Policy Letter supersedes all previous Policy Letters on this subject. [2]

277 POLICY SUBJECT: Land Use PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: Property Management NUMBER: 9.01 APPROVAL DATE: EFFECTIVE DATE: REVISED DATE: A. PURPOSE: The purpose of this policy is to outline a procedure for the disposition and utilization of Commission-owned property, including but not limited to real estate, cell towers and oil, gas and mineral rights. B. SCOPE: This Policy Letter applies to all requests for the sale, lease, license or other use of Commissionowned real estate, which the Property Management Department has been designated to manage. This policy supersedes all prior Commission land use policies, including the one adopted by the Commission on July 21, 1992 and thereafter. C. GENERAL POLICY: The Commission may transfer property interests when feasible and advisable to do so, provided such actions are in accordance with the procedures enumerated and discussed in Section D below. D. PROCEDURES: 1. Approval a. Commission Approval. Formal Commission approval shall be obtained for all transactions resulting in one-time or yearly income to the Commission in excess of $20,000. Formal approval is also required for leases with terms that exceed ten years and cannot be terminated by the Commission prior to that time. b. Staff Approval. Transactions of $15,000 or less may be approved by the Chief Counsel. Transactions between $15,001 and $20,000 may be approved by the Chief Operating Officer or the Chief Executive Officer. Agreements governing all such transactions may be prepared and executed by the Property Management Coordinator or Chief Counsel designee, with approval as to form and legality by the Legal Department, under blanket authority granted by the Commission. Non-revenue generating agreements, such as general rights-of-entry, cell tower lease amendments and other such non-revenue generating agreements may be prepared, approved and executed by the Property Management Coordinator or Chief Counsel designee with the approval as to form and legality by the Legal Department. [1]

278 2. Sale of Residential Property a. When the Commission authorizes the sale of residential property, the property shall be sold by sealed public bid or proposal after advertisement on the Commission s website and by using any other means necessary as determined by the Property Management Department to generate market interest and maximize sales price. The fair market value for the residential property being sold shall be determined by a certified appraiser from the Commission s approved appraiser pool prior to the public sale. b. The property shall be sold to the highest bidder or offeror, provided that the bid or proposal meets or exceeds the fair market value of the property. In the event that the highest bidder or offeror is unable or unwilling to proceed with the sale, the property shall be sold to the second highest bidder or offeror and so on, provided that the accepted bid or proposal meets or exceeds the fair market value. c. In the event that no acceptable bids or proposals are received, the Commission shall then have the option of one or more of the following: (1) Re-advertising the property for sale by sealed bid or proposal; (2) Placing the property For Sale by Owner and allowing the Property Management Department to field offers for a period of time. The Property Management Department would then present the highest offer or proposal to the Commission for approval, if required under Section 1 above; or (3) Listing the property with a licensed real estate broker/agent from the Commission s approved real estate broker/agent pool. The broker/agent will place a sign on the property, show the property, include it in the multi-list, and present offers to the Commission. The Property Management Department will then present the highest offer or proposal to the Commission for approval, if required under Section 1 above. Compensation will be a flat fee or a percentage of the sales price, as such compensation is negotiated with the broker/agent by the Property Management Department. The full amount paid by the buyer shall meet or exceed the fair market value. d. Notwithstanding the above, when it is determined to be in the best interests of the Commission, the Commission may list the property with a licensed real estate broker/agent, pursuant to Section 2c(3) above, without first attempting to sell by sealed public bid or proposal. 3. Sale of Commercial Property a. Commission-owned commercial property shall only be sold upon formal Commission approval when it is recommended by the Property Management Department because the property has no commercial value to the Commission; or, because it is necessary to sell the property to limit the Commission s liability and exposure. If the Commission authorizes the sale of commercial property, the property shall be sold by sealed public bid or proposal after advertisement on the Commission s website and by using any [2]

279 other means necessary as determined by the Property Management Department to generate market interest and maximize potential sales price. The fair market value for the commercial property being sold shall be determined by a certified appraiser from the Commission s approved appraiser pool prior to the public sale. b. The property shall be sold to the highest bidder or offeror, provided that the bid or proposal meets or exceeds the fair market value of the property. In the event that the highest bidder or offeror is unable or unwilling to proceed with the sale, the property shall be sold to the second highest bidder or offeror and so on, provided that the accepted bid or proposal meets or exceeds the fair market value. c. In the event that no acceptable bids or proposals are received, the Commission shall then have the option of one or more of the following: (1) Re-advertising the property for sale by sealed bid or proposal; (2) Placing the property For Sale by Owner and allowing the Property Management Department to field offers for a period of time. The Property Management Department would then present the highest offer or proposal to the Commission for approval, if required under Section 1 above; or (3) Listing the property with a licensed real estate broker/agent from the Commission s approved real estate broker/agent pool. The broker/agent will place a sign on the property, show the property, include it in the multi-list, and present offers to the Commission. The Property Management Department will then present the highest offer or proposal to the Commission for approval, if required under Section 1 above. Compensation will be a flat fee or a percentage of the sales price, as such compensation is negotiated with the broker/agent by the Property Management Department. The full amount paid by the buyer shall meet or exceed the fair market value. 4. Commercial Ground Leases a. When the Property Management Department plans to lease property for commercial or industrial purposes, and termination may not occur in less than three years, it shall request Commission approval to publically advertise a Request for Proposals (RFP) on the Commission s website and in such other publications or by other such means as the Property Management Department deems advisable to generate market interest and maximize potential lease value. The RFP shall specify that the lease is to be unsubordinated. b. Evaluations and recommendations of the proposals received shall be in accordance with then-existing Commission procurement policy and procedure. c. The property shall be leased to the highest offeror, whose proposal is determined to be the most advantageous to the Commission; provided, however, that the proposal/offer meets or exceeds the fair market rental value of the property. In the event that the selected offeror is unable or unwilling to proceed with the lease, the property shall be [3]

280 leased to the second highest offeror and so on, provided that the accepted proposal/offer meets or exceeds the fair market rental value. d. In the event that no acceptable proposals/offers are received, the Commission shall then have the option of one or more of the following: (1) Re-advertising the property for lease by sealed proposal; (2) Placing the property For Lease by Owner and allowing the Property Management Department to field offers for a period of time. The Property Management Department would then present the highest proposal/offer to the Commission for approval, if required under Section 1 above; or (3) Listing the property for lease with a licensed real estate broker/agent from the Commission s approved real estate broker/agent pool. The broker/agent will place a sign on the property, show the property, include it in the multi-list, and present offers to the Commission. The Property Management Department will then present the highest offer to the Commission for approval, if required under Section 1 above. Compensation will be a flat fee or a percentage of the sales price, as such compensation is negotiated with the broker/agent by the Property Management Department. The full amount paid by the lessee shall meet or exceed the fair market rental value. 5. Communication Leases The Property Management Department shall work to generate non-toll revenue by leasing available cell tower space and land for new towers, monopoles and/or small cell applications. The role of the Property Management Department shall primarily be to negotiate and prepare such leases, assist with zoning matters, and to identify surplus property for the construction of new towers, monopoles or small cell applications. 6. Timbering The Property Management Department shall work to identify areas of Commission owned property that may be timbered for profit. Once identified, the Property Management Coordinator or Chief Counsel designee shall request review of the proposed timber area by the Engineering Department, including both the Roadway Site Design Coordinator and the Environmental Manager. Once approved by the Engineering Department, the Property Management Coordinator or Chief Counsel designee may authorize the Commission s consulting forester to solicit bids for the sale of timber. The consulting forester shall recommend the highest bidder to the Property Management Department. The Property Management Department shall seek formal Commission approval of the sale if required by Section 1 above. The Property Management Coordinator or Chief Counsel designee shall work with and through the Commission s consulting forester to ensure that proper forest management techniques are implemented on Commission property. [4]

281 7. Agricultural Leases The Property Management Department shall recommend that the Commission enter into agricultural leases when appropriate, ensuring that conservation plans are followed by lessees. 8. Sale of Remnant Parcels a. The Commission owns small remnant parcels that are of insignificant size and limited use. The Property Management Department will work to sell these parcels. This action will save the Commission the time and expense associated with administration and will benefit local municipalities by returning the remnants to the tax rolls. b. To sell such remnant parcels, the Property Management Department shall set a market value, notify adjacent property owners and offer the parcel for sale either by sealed bid or offer, or by auction. If the highest bid or proposal meets or exceeds the market value, the remnant parcel may be sold to the highest bidder or offeror. c. Notwithstanding Sections 8a and 8b above, if the party or parties from whom the Commission originally acquired a parcel, subsequently identified as a remnant parcel, desire to purchase all or a portion of that remnant from the Commission or if the Commission determines that it is in its best interests to offer the property to an immediate adjacent property owner, the property may be made available to those parties first, provided they are still an adjacent property owner, prior to the Commission offering the remnant to any others. The Property Management Department, at its discretion, shall determine whether or not the remnant should be sold for market value or whether a formal appraisal is required. 9. Non-Commercial Leases a. The Property Management Department may negotiate short or long-term leases for ground or dwellings, when it determines that such leases are in the best interests of the Commission, subject to Section 1b above. b. All such leases shall include an indemnification of the Commission, and such other protections as are deemed desirable by the Property Management and Legal Departments. 10. Negotiated Sales and Conveyances In addition to the authority granted elsewhere in this policy, the Property Management Department shall have the authority to negotiate sales or conveyances subject to Commission approval as set forth herein (with or without advertising, at the discretion of the Property Management Department) in the following instances: a. Land without access except over adjoining land owned by others, following the procedure established in Section 8b above; [5]

282 b. Public utility companies desiring rights-of-way; and c. To honor commitments made by the Commission to any Department of the Commonwealth of Pennsylvania. 11. Local Economic Development Agencies The Property Management Department may also subject to Commission approval as set forth herein negotiate agreements with transportation companies and agencies, local economic development agencies, industrial development agencies, municipalities and related agencies when deemed advisable. The Commission may also work with local governments to develop incentive programs and may negotiate joint-venture development programs with local governments and private developers in connection therewith. Provided however, that all such agreements and programs shall result in the receipt of fair market value by the Commission for any property interests leased or conveyed. For the purposes of this section, the avoidance of liability and the creation of public goodwill may be taken into consideration. 12. Authority to Buy or Lease The Property Management Department may also assist appropriate Commission departments in locating land or facilities that the Commission may desire to lease or purchase. 13. Deeds All deeds for the sale of land near the Turnpike shall include a provision that prevents property owners, current and future, from bringing noise abatement complaints against the Commission. The Property Management Department shall also consider other deed restrictions as may be necessary or desirable, including, but not limited to, roadway runoff provisions, billboards and other provisions that may be recommended by the Commission's Engineering or Legal Departments. All deeds, as well as sales agreements, must be executed in accordance with Commission procedure and subject to Legal Department review and approval. 14. New Construction All requests to purchase or to enter into a long-term lease of property acquired by the Commission as the result of new roadway construction shall be deferred pending completion of the construction in question. Except when the property may be sold or leased in accordance with Commission policies and procedures prior to that time when all affected departments agree that such a conveyance will have no bearing on said or future construction or maintenance or other roadway-related matters. 15. Mineral Rights When conveying property interests, the Property Management Department shall take the issue of mineral rights into consideration. When feasible, the Property Management [6]

283 Department should recommend that the Commission retain and capitalize on mineral rights associated with specific parcels. 16. Fair Market Value The Property Management Department shall not recommend the lease or conveyance of property for less than fair market value compensation to the Commission. For the purposes of this section, the avoidance of liability and the creation of public good will may be taken into consideration. 17. Processing Land Use Requests a. Land use requests shall be processed by the Property Management Department. Once the request has been received, it will be evaluated and then circulated internally for review and comment to the following departments: Engineering, Maintenance, Legal, the General Consulting Engineer and other departments that may be affected by the request. b. When a staff consensus has been reached, the Property Management Department will request appropriate approvals (pursuant to Section 1 above), notify the requester, and prepare appropriate documentation in accordance with internal Property Management Department and Commission procedures. E. DEFINITIONS: Fair Market Value - The price (cash or equivalent) that a buyer could reasonably be expected to pay and a seller could reasonably be expected to accept, if the property were for sale on the open market for a reasonable period of time, both buyer and seller being in possession of all pertinent facts, and neither being under any compulsion to act. This Policy Letter supersedes all previous Policy Letters on this subject. [7]

284 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 9.02 APPROVAL DATE: EFFECTIVE DATE: Tower, Monopole and Cell Site Structure Leasing Property Management REVISED DATE: A. PURPOSE: The purpose of this policy is to outline a process for the leasing of existing Pennsylvania Turnpike Commission ( Commission ) owned communications tower space, monopoles, and cell site structures (together Communication Facility, Communications Facility or Communication Facilities ) and for the leasing of Commission-owned property to outside parties for the purpose of building new Communications Facilities. B. SCOPE: This Policy applies to all requests for the lease of Commission-owned property to build new Communication Facilities and/or lease space on Commission Communication Facilities. The PTC Property Management Department, with technical oversight from the Information Technology (IT) and Facilities Departments, is designated to handle all requests for the lease, license or other use of Commission Communication Facilities and surplus property intended for Communication Facility construction. C. GENERAL POLICY: The Commission, in its sole discretion, may lease space on existing Communication Facilities or lease or sell surplus property for the construction of Communication Facilities, when feasible and advisable to do so, in order to extend and improve existing coverage for cellular and other wireless communications services across the Turnpike. D. DEFINITIONS: Communication Facilities - Towers, monopoles and cell site structures within the defined limits of a telecommunications equipment compound. Compound A defined area at the base of a Communications Facility in which telecommunications equipment is located, including any building housing such equipment. Fair Market Value - The price (cash or equivalent) that a buyer could reasonably be expected to pay and a seller could reasonably be expected to accept, if the property were for sale on the open [1]

285 market for a reasonable period of time, both buyer and seller being in possession of all pertinent facts, and neither being under any compulsion to act. The Telecommunications Act of 1996 is further defined as Telecommunications Act of 1996, Pub. LA. No , 110 Stat. 56 (1996) 47 USCA section 151, as amended. E. PROCEDURES: 1. Review of Requests. All requests regarding Communications Facilities, whether they are for collocation or new construction, shall be processed by the Property Management Department. Once the request has been received, it will be evaluated and then circulated internally for review and comment (prior to being approved pursuant to Section 4.a below) based on the following criteria: a. If the request is to collocate on an existing Commission tower or monopole space, the internal review will consist of representatives of the Property Management, IT, Facilities and Legal Departments. b. If the request is to construct a new Communication Facility anywhere on Commission property, the internal review will consist of representatives of the Property Management, IT, Legal, Engineering, Facilities and Maintenance Departments, along with concurrent reviews by the Commission s Third Party Communication Facility Review Agent. 2. Lease of Existing Commission-owned Tower Space. a. Public agencies. The Commission s first priority in Communication Facility space shall be public safety. When feasible, and when technical concurrence has been obtained from the Commission s Third Party Communication Facility Review Agent, in its sole discretion, may lease excess Communication Facility space to state, county and municipal agencies for 911 use and other public service related services. b. Commercial entities. The Commission may, in its sole discretion, also lease excess Communication Facility space to commercial entities, but only in those situations where the local zoning entity has requested that the Commission lease to that particular entity, where the provisions of the Telecommunications Act of 1996 require it, or where to do so would be in the best interests of the Commission. Any commercial entity collocating on a Commission owned Communication Facility is responsible for obtaining all appropriate and applicable zoning approvals from the local agencies, a copy of which shall be provided to the Property Management Department for review and approval pursuant to Section E of this policy. [2]

286 c. Notwithstanding the above, no excess Communication Facility space shall be leased to either a public agency or commercial entity if, based on a structural analysis with the proposed total loading, the forces acting on the structure are greater than or equal to 85% of the capacity of any component of the tower or its function. The Commission, in its sole discretion, may allow such collocation so long as the public agency or commercial entity modifies the Communication Facility, foundation or both so that the resulting maximum forces are less than or equal to 85% of the capacity of the critical component. d. Requested amendments to an existing lease shall not be granted if, based on a structural analysis with the proper total loading, the forces acting on the structure are greater than or equal to 85% of the capacity of any component of the Communication Facility or its foundation. The Commission, in its sole discretion, may decide to grant such amendment so long as the public agency or commercial entity modifies the Commission Facility, foundation or both so that the resulting maximum forces are less than or equal to 85% of the capacity of the critical components. e. All Communication Facility modification designs must be reviewed and approved per Section E of this policy. If no such modification is feasible, or if the approving parties per Section E of this policy deem no such modification is feasible, no lease or amendment shall be granted. f. All proposed equipment installations, including antennas, mounts, cables and other appurtenances and all proposed Communication Facilities modifications shall adhere to the ANSI/TIA-222 standard and the current Uniform Construction Code (UCC). All supporting documentation, including structural analyses, reports, drawings and modification design calculations shall be submitted pursuant to Section E of this policy. 3. Lease or Sale of Commission Property for New Tower Construction 4. Approval. a. Public agencies. The Commission may, in its sole discretion, sell or lease Commission property to state, county and municipal agencies, as described above, for the construction of Communications Facilities. b. Commercial entities. The Commission may, in its sole discretion, sell or lease Commission property to commercial entities for the construction of Communications Facilities, but only in those situations where the local zoning entity has requested that the Commission lease to that particular entity, where the provisions of the Telecommunications Act of 1996 require it or where to do so would be in the best interests of the Commission. Any commercial entity purchasing or leasing Commission property is responsible for obtaining all appropriate and applicable zoning approvals from the local agencies. a. Commission approval. Formal Commission approval shall be obtained for all transactions resulting in one-time or initial yearly income to the Commission in excess of $20,000. Formal approval is also required for leases with terms that exceed ten years and cannot be terminated without cause by the Commission prior to that time. [3]

287 b. Staff approval. Transactions of $15,000 or less may be approved by the Chief Counsel. Transactions between $15,001 and $20,000 may be approved by the Chief Operating Officer or the Chief Executive Officer. Agreements governing these transactions may be prepared and executed by the Property Management Administrator, with approval as to form and legality by the Legal Department. 5. Compensation. All transactions shall result in the Commission receiving fair market value for the property interest in question. For the purposes of this section, the avoidance of liability, the creation of public good will, the rendering of public service, and the performance of services for the Commission by the lessee or purchaser may be taken into consideration. This Policy Letter supersedes all previous Policy Letters on this subject. [4]

288 POLICY POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: APPROVAL DATE: EFFECTIVE DATE: Right-to-Know Law Information Request Legal REVISED DATE: A. PURPOSE: To establish policy and responsibilities for compliance with the Right-to-Know Law ( RTKL ), 65 P.S B. SCOPE: This policy applies to all requests for public records made pursuant to the RTKL. C. GENERAL POLICY: The intent of the RTKL is to ensure access to public records of a Commonwealth or local agency. It is the Commission's policy to provide access to public records in a timely, efficient and legally appropriate manner in order to assure the ability of records requestors to exercise their right of access to public records under the RTKL. This document authorizes the Open Records Officer to establish procedures for the receipt of and response to requests for public records. D. DEFINITIONS: The term Agency, Public Record, Record, Requester and Response shall have the meanings given to them in the RTKL. Other terms used in this policy shall have the following meanings: 1. Appeals Officer An attorney from the Office of Open Records (OOR) who decides an appeal following an agency s denial of a written RTKL request. 2. Business Day Any day other than a Saturday or Sunday, except those days when the offices of the Commission are closed for all or part of the day: (1) Due to state holiday; (2) Due to a natural or other disaster; (3) Due to the request or direction of local, state, or federal law enforcement agencies or officials. [1]

289 3. Commission - The Pennsylvania Turnpike Commission. 4. Mailing Date - The date of the Commission's response to a RTKL request is the date the response is deposited in the United States mail or transmitted by electronic or facsimile transmission. For a requester submitting a RTKL request to the Commission, the mailing date is the date of the postmark on the envelope transmitting the RTKL request. For other forms of delivery, the mailing date is the transmission date affixed to a facsimile or , or the date stamp affixed by the Commission to a RTKL request delivered in person. 5. Office of Open Records - The Office of Open Records as established in the RTKL. 6. Open Records Officer The official or employee designated by the Commission head to receive and respond to RTKL requests. 7. Redaction - The eradication of a portion of a record while retaining the remainder. 8. RTKL Request A written request for a record that is submitted to the Open Records Officer, in person or by mail, facsimile or and that indicates that it is being made pursuant to the RTKL. E. PROCEDURES: "Procedures for Responding to RTKL Requests": 1. Requesters must submit RTKL requests to the Commission addressed to the attention of the Open Records Officer. Requests may be submitted in person or by mail, or facsimile. Commission employees must promptly forward requests for records to the Open Records Officer. 2. All RTKL requests must be submitted in writing as set forth below. The request must include the name and address to which the Commission should address its response; include an indication that the request is being made pursuant to the RTKL and be addressed to the Open Records Officer, by name, RTKL address or title. 3. All RTKL requests must identify or describe the records being sought with sufficient specificity to enable the Commission to ascertain which records are being requested. RTKL requests that are not sufficiently specific will be denied by the Commission. 4. A written RTKL request need not include any explanation of the requester s reason for making the request or the intended use of the records unless otherwise required by law. 5. Oral or anonymous requests will be automatically denied by the Commission. If the requester wishes to pursue the relief and remedies provided for in the RTKL, the request for access to records must be a written request. 6. RTKL requests submitted by mail must be addressed to the Open Records Officer at the following address: [2]

290 Mailing Address: Open Records Office Pennsylvania Turnpike Commission Legal Department P.O. Box Harrisburg, PA RTKL requests submitted in person shall be delivered to the Open Records Officer during regular business hours of 8:30 A.M. to 4:30 P.M., Monday through Friday (excluding Commission holidays and emergency closings) at the following address: Open Records Officer Pennsylvania Turnpike Commission Legal Department 700 South Eisenhower Blvd. Middletown, PA RTKL requests submitted by facsimile shall be sent to the Open Records Officer at (717) RTKL requests submitted by shall be sent to the Open Records Officer by clicking on the PA Right to Know Law Information Request at The Commission will not accept oral or anonymous requests. This Policy Letter supersedes all previous Policy Letters on this subject. [3]

291 PTC Right to Know Law Information Requests PROCEDURES Exhibit A 1. Open Records Officer Designation The Commission shall designate an employee to serve as its Open Records Officer and an employee to serve as Deputy Open Records Officer. The Deputy Open Records Officer shall perform the duties of the Open Records Officer in the absence of the Open Records Officer or as directed by the Open Records Officer. The Open Records Officer shall notify Commission employees to promptly forward all Right-to- Know Law (RTKL) requests to the Open Records Officer for processing and response. The Open Records Officer shall also ensure that the following information is posted at the Commission and on the Commission s website: a. Contact information for the Open Records Officer. b. Contact information for the Office of Open Records. c. A form which may be used to file a RTKL request. d. Regulations, policies and procedures of the Commission relating to the RTKL. 2. Processing a RTKL request. Upon receipt of a RTKL request, the Open Records Officer must ensure the completion of the following: a. Record receipt of an electronic request ( or facsimile) or date-stamp non-electronic written requests. b. Assign a tracking number to the RTKL request. c. Record the RTKL request in the system used by the agency for tracking RTKL requests and their final disposition. d. Compute the day on which the five business day period will expire and note the same on the written request. e. Keep an electronic or paper copy of the written RTKL request, including all documents submitted with it and the envelope (if any) in which it came. f. Create a file for the retention of the original RTKL request, a copy of the response provided including all attachments or enclosures, a record of verbal or written communications with the requester and a copy of other communications. 3. Calculating the Five (5) business day period. a. The five (5) business day period does not begin to run until a RTKL request is received by the Open Records Officer. b. For purposes of determining the end of the five (5) business day period, the day that a RTKL request is received (or deemed to be received) is not counted. The first day of the [4]

292 five (5) business day period is the Commission s next business day receipt of the request. 4. Initial Review of Requests a. Upon receipt of a RTKL request, the Open Records Officer should promptly review the request. b. The Open Records Officer must determine whether the records sought have been identified with sufficient specificity to enable the Commission to determine what records are being sought, and that all other requirements set forth herein and in the RTKL have been met. c. The Open Records Officer must then evaluate the request and make a good faith effort to determine whether or not the records requested meet the definition of a public record as defined by the RTKL; whether the Commission has possession, custody or control of the record, and whether the agency will require more than five (5) business days to respond. d. The Open Records Officer must respond to the RTKL request within five (5) business days of receipt of the request. Failure to send a response within five (5) business days will be deemed a denial of the request by the Commission. The Open Records Officer may, however, notify the requester in writing that a thirty (30) calendar day extension from the end of the five (5) day period is required to respond and the reason therefore. Only the following circumstances will justify the extension period: i. The RTKL request requires redaction of a public record in accordance with Section 706 of the RTKL. ii. The RTKL request requires retrieval of a record stored at a remote location. iii. A legal review is necessary to determine whether the record requested is subject to access under the RTKL. iv. The requester has not complied with the Commission s policies and procedures regarding access to public records as set forth herein. v. The requester has not complied with a demand for prepayment of fees in accordance with Section 7 below. In this case, the time for response shall be tolled from the time the demand for payment is made until such time as payment is actually received by the ORO. vi. A response within the five (5) business day period cannot be accomplished due to a bona fide and specific Staffing limitations. vii. The extent or nature of the request precludes a response within the required time period. e. If the Open Records Officer determines that the records sought are not public records in whole or in part, or that the requester has not met the requirements of this policy and the RTKL, the Open Records Officer will issue a written denial. The denial must include the date of response, a description of the records requested; specific reasons why the request is being denied, and citation to the supporting legal authority. If the denial is the result of a determination that the record requested is not a public record, the specific reasons for the agency s determination that the record is not public record shall be included. The denial must also include the typed name, title, business address, business [5]

293 5. Notice telephone number and signature of the Open Records Officer, plus the procedure to appeal the denial of access under the RTKL. f. The Open Records Officer may not deny an RTKL request based on intended use of the public records. a. If an extension of time within which to respond to a RTKL request is necessary, the Open Records Officer shall send written notice to the requester within five (5) business days of receipt of the request. b. The notice shall include the following: i. A statement notifying the requester that the request is being reviewed. ii. The reason for the review. iii. A reasonable date that a response is expected to be provided. iv. An estimate of applicable fees owed when the record becomes available. c. If the response date is expected to be provided in excess of thirty (30) days, following the five (5) business days allowed for in Section 901 of the RTKL, the request shall be deemed denied unless the requester has agreed in writing to a longer extension and the response is made within that time. 6. Producing Public Records 7. Redaction a. If the Open Records Officer determines that the records sought are public records, he/she will contact the appropriate Commission department and arrange for the timely delivery of the requested public records to the Open Records Officer. The Commission is not required to create a public record that does not already exist, nor is the Commission required to compile, maintain, format, or organize a public record in a manner in which the Commission does not currently do so. b. The Open Records Officer will then issue a written response to the requester, within the time limitations set forth in Section 4.d above, either mailing or ing the response and records or specifying when and where the records will be made available for the requester's inspection. The response will also include the amount due for mailing and duplication by photocopying, printing from electronic media or microfilm, copying onto electronic media, transmission by facsimile, or other electronic means and other means of duplication. c. The Open Records Officer may make the records available through any publicly accessible electronic means. If, however, the requester writes to the Commission within thirty (30) days of receipt of the Commission s response stating that the requester is unable or unwilling to access the information electronically, the Commission shall provide the records in paper format within five days of the receipt of said notice. The Open Records Officer shall include the amount due for mailing and duplication. a. If the Open Records Officer determines that a public record contains information, which is subject to access as well as information which is not subject to access, the ORO shall [6]

294 grant access to the information which is subject to access and deny access to information which is not subject to access. If the information which is subject to access cannot be separated from the information not subject to access, the Open Records Officer must redact from the public record the information which is not subject to access and the response shall grant access to the information which is subject to access. The Open Records Officer may not deny access to the public record if the information which is not subject to access is able to be redacted. Information redacted shall be deemed a denial. b. If the Open Records Officer s response grants a request for public records and the requester has asked for certified copies, the Open Records Officer shall provide certified copies upon payment of the applicable fees. 8. Public Access Room a. The Open Records Officer may in his or her sole discretion establish a public access room where public records may be made available to a requester for inspection and duplication during regular business hours of the Commission. b. The public access room will be available at times established by the Open Records Officer. c. When the public access room is in use by a requester, the Open Records Officer will ensure that a Commission representative is present at all times. Under no circumstances shall the requester remove the records from the public access room. 9. Appeal Process a. If the Open Records Officer denies the RTKL request, the requester may file an appeal with the Office of Open Records within fifteen (15) business days of the mailing date of the Commission s response or within fifteen (15) business days of a deemed denial. b. The appeal must be submitted timely and in accordance with the RTKL and the procedures established by the Office of Open Records. c. The appeal must state grounds upon which the requester asserts that the record is a public request. 10. Judicial Review 11. Fees a. The requester or the Commission may file a petition for review with the Commonwealth Court of Pennsylvania within thirty (30) days of the mailing date of the final determination of the Appeals Officer or within thirty (30) days of the date the request for access was deemed denied. b. A petition for review filed with the Commonwealth Court shall stay the release of documents until a decision has been issued by the Court. a. The Open Records Officer will ensure that the appropriate fees are charged to the requester. The Open Records Officer is responsible for collecting the same. b. If the Commission grants the RTKL request, the following fees shall be charged: [7]

295 i. Copies: Fees for duplication by photocopying, printing from electronic media or microfilm, copying into electronic media, transmission by facsimile or other electronic means and other means of duplication shall be established in accordance with rates established by the Office of Open Records. Fees for copying complex and extensive data sets shall be based on reasonable market values of the same or closely related data sets. ii. If a record is only maintained electronically or in other non-paper media, duplication fees shall be limited to the lesser of the fee for duplication on paper or the fee for duplication in the original media unless the requester specifically requests the record to be duplicated in the more expensive medium. All other fees shall be in accordance with the RTKL. iii. Postage: Actual cost of mailing. iv. Floppy disks: $1.00 per disk, plus sales tax. v. Certified copies: $1.00 per copy. c. The Open Records Officer may, at his or her sole discretion, require a requester to prepay an estimate of the fees authorized by the RTKL, if the required fees are expected to exceed $100. Payment may be made by check or money order made payable to the Pennsylvania Turnpike Commission. [8]

296 This is a statement of official Pennsylvania Turnpike Policy! " # $ % % & ' % ( ) * +, -. / ), * $ ( 0 ). #, 0 1 $ 2 3 # ) & ) * * '. 0 2 $ ( 0 ). % 5 # ' $ ( 0 ). % 8 9 : ; < : = A B C D E F D G H C G I J B K H D G L K M N K H J G O C I K P C Q B G R S N B S T C S M M C H H J G U V W X S H H M E H J G R C F S M M G E P J K P I G F R S J K G P Y S P O E P O C F Q B S J M K F M E R H J S P M C H J B C K P I G F R S J K G P R S N Z C F C L C S H C O [ \ 9 > ] = ^ [ _ G P I K O C P J K S L K J N ` a F C C R C P J H ` L L _ G R R K H H K G P C R D L G N C C H Y Z G J B D C F R S P C P J S P O J C R D G F S F N Y S P O S L L D C F R S P C P J S P O J C R D G F S F N C R D L G N C C H G I J B C _ G R R K H H K G P b H M G P J F S M J C O H C F T K M C D F G T K O C F Y Q B G S F C a F S P J C O S M M C H H J G M E H J G R C F S M M G E P J K P I G F R S J K G P Y R E H J H K a P S M G P I K O C P J K S L K J N S a F C C R C P J [ c J Q K L L Z C J B C F C H D G P H K Z K L K J N G I J B C _ B K C I G I _ G R R E P K M S J K G P H d X E Z L K M e C L S J K G P H G F O C H K a P C C J G C P I G F M C J B K H D G L K M N S P O J G R S K P J S K P G P I K L C J B C M G P I K O C P J K S L K J N S a F C C R C P J H H K a P C O Z N _ G R R K H H K G P C R D L G N C C H [ c J Q K L L S L H G Z C J B C F C H D G P H K Z K L K J N G I J B C _ B K C I G I _ G R R E P K M S J K G P H d X E Z L K M e C L S J K G P H G F O C H K a P C C J G C P H E F C J B S J J B C _ G R R K H H K G P b H M G P J F S M J C O H C F T K M C D F G T K O C F C P I G F M C H J B K H D G L K M N Q K J B K J H C R D L G N C C H S P O R S K P J S K P H J B G H C S a F C C R C P J H G P I K L C [ f [ e C g E C H J H I F G R _ E H J G R C F H J G J B C U V W X S H H _ E H J G R C F h C F T K M C _ C P J C F I G F _ E H J G R C F ` M M G E P J c P I G F R S J K G P U i M C D J S H D F G T K O C O Q K J B K P J B K H D G L K M N Y M E H J G R C F S M M G E P J K P I G F R S J K G P R S N G P L N Z C O K H M L G H C O J G J B C S M M G E P J B G L O C F [ _ E H J G R C F H C F T K M C F C D F C H C P J S J K T C H R E H J T C F K I N J B C K O C P J K J N G I C T C F N M S L L C F G F Q S L j V K P T K H K J G F S H J B C S M M G E P J B G L O C F Z C I G F C J B C N M G P I K F R G F O K H M L G H C S P N S M M G E P J O C J S K L H [ e C I C F J G h C M J K G P U [ ^ Z C L G Q I G F D F G M C O E F C H a G T C F P K P a J B C T C F K I K M S J K G P G I K O C P J K J N [ k [ U i J C F P S L e C g E C H J H I F G R A B K F O X S F J K C H S [ ` M M C H H J G U V W X S H H M E H J G R C F S M M G E P J K P I G F R S J K G P Z N C i J C F P S L J B K F O D S F J K C H Q K L L G P L N Z C D F G T K O C O D E F H E S P J J G S H E Z D G C P S G F G J B C F Q F K J J C P l E O K M K S L G F O C F K H H E C O J G S L S Q C P I G F M C R C P J G I I K M K S L Y C i M C D J S H D F G T K O C O K P h C M J K G P U [ f [ Z Z C L G Q [ e C I C F J G h C M J K G P U [ f Z C L G Q I G F D F G M C O E F C H a G T C F P K P a J B C F C L C S H C G I M E H J G R C F K P I G F R S J K G P D E F H E S P J J G S H E Z D G C P S G F G J B C F Q F K J J C P l E O K M K S L G F O C F [

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301 8 ; z Ÿ = < v } 8 z v = t y = < <? u? 8 >? = y ] ; > z =? < 8 ] ] = ; t z v t y = < 8 z v = t c P M G P H K O C F S J K G P I G F J B C D F G T K H K G P G I S P U V W X S H H P G P V F C T C P E C J F S P H D G P O C F I G F E H C G P J B C X C P P H N L T S P K S A E F P D K j C Y c B C F C Z N a F S P J J B C X C P P H N L T S P K S A E F P D K j C _ G R R K H H K G P Y K J H S a C P J H S P O C R D L G N C C H S M M C H H J G R N U V W X S H H M E H J G R C F S M M G E P J K P I G F R S J K G P [ c E P O C F H J S P O J B S J J B K H K P I G F R S J K G P K H D C F H G P S L J G R C S P O R S N K P M L E O C I K P S P M K S L K P I G F R S J K G P Y K P M L E O K P a M F C O K J M S F O S P O M B C M j K P a S M M G E P J K P I G F R S J K G P [ c S a F C C J G F C L C S H C S P O O K H M B S F a C J B C X C P P H N L T S P K S A E F P D K j C _ G R R K H H K G P I F G R S P N S P O S L L M L S K R H Y O C R S P O H Y S P O M S E H C H G I S M J K G P I G F S P N O S R S a C G F K P l E F N G I S P N j K P O G F P S J E F C M S E H C O Z N Y F C H E L J K P a I F G R Y S F K H K P a G E J G I Y G F G M M E F F K P a K P M G P P C M J K G P Q K J B S M M C H H J G J B C S Z G T C V R C P J K G P C O U V W X S H H M E H J G R C F S M M G E P J K P I G F R S J K G P [ c E P O C F H J S P O J B S J J B K H S E J B G F K q S J K G P Q K L L F C R S K P S M J K T C S P O G P I K L C Q K J B J B C X C P P H N L T S P K S A E F P D K j C _ G R R K H H K G P Y E P J K L c B S T C F C J E F P C O R N P G P V F C T C P E C U V W X S H H J F S P H D G P O C F S P O M S P M C L C O R N U V W X S H H S M M G E P J [ U R D L G N C C Ž S R C X F K P J U R D L G N C C h K a P S J E F C S J C ª «± ² ³ ª «µ ž

302 z ¹ ˆ ƒ ƒ º ƒ» ¼ ½ ˆ ~ ¼ ¼ ¾ ˆ : z ]? ƒ» ¼? } : ~ t < À 8 ˆ ƒ ~ 9 z ¹ ˆ ƒ ~ ¾ ½ Á ¼ ¼ º ¹ ] ~ v À  ~ ¼ ½ º ¼ Á ¼ ¹ Á ½ ~ ½ 9 _ S H C c Ž E R Z C F c I ` D D L K M S Z L C _ S H C c P T C H J K a S J G F à S j K P a e C g E C H J G F Ž S R C G I ` E O K J G F Ž S R C G I X A _ U R D L G N C C B G H C S J S K H Ä C K P a e C g E C H J C O Y K I S D D L K M S Z L Ä F K C I L N O C H M F K Z C Y K P O C J S K L H Y J B C F C S H G P H I G F J B C F C g E C H X L C S H C D F G T K O C O C J S K L H F C a S F O K P a J B C Ž G P V e C T C P E C U V W X S H H ` M M G E P J K P I G F R S J K G P F C g E C H J C O [ A F S T C L V H D C M K I K M K P I G F R S J K G P H B G E L O Z C K P O K M S J C O K P J B C P C i J H C M J K G P S J C e S P a C S J C S J S Ž C C O C O h D C M K S L Ž G J C H Š c P H J F E M J K G P < ¾ t ~ ƒ < ¾ >  ~ x ~ ] ƒ» ¼ ~ x» 9 8»» À ~ ¼ { ] ƒ» ¼ ~ = ˆ ˆ t ~ ƒ ] ƒ» ¼ ~ = ˆ ˆ >  ~ x ~ u  ~ ¼ x» 9 8»» À ~ ¼ { u  ~ ¼ x» 9 > ~ ˆ ˆ t ~ ƒ u  ~ ¼ x» 9 > ~ ˆ ˆ >  ~ x ~ Å Æ Æ Ç È É Ê Ë Ç Ê Ì Í Ê Î Ï Î Î Ð È Í Ñ Ë Ò Ê Î Í Ò Ó Ô Ï Ï Ê Ë Ï È Õ Ö Ö Ø Ê Ç È Ù Ú Û Ü Ü Í Î Ï È Ó Ê Ç Ý Ê Ç É Ô Þ Ê ß Æ Ê Ç Ö Ï Ô È Î à Ú Û Ü á Ê Æ Ï â < ¾ ˆ ˆ ƒ ~ Á ¼ ¼ º» À ½ ½ ¼ ~ ¼ ¼ ~»» À ~ ¼ ~ À ½ 9

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` M I J # K G F J G H F G $! J F G! H F H! G " H % # M a M I J # K G $ H F G $ F H H H b K " F F " H _ H F F " H! F J M

304 j k l m n o p n q o r s q p o n q o s p t u v r s q p w x y q z u o { m u o q s r v x l t { l s z l n v l t u o u z x l p t } r n x p u t { l t z v r { l t ~ x q o m l t u x l p t } u s q v v u s z o l m l t u v n o p s q z r x l p t k k x n ƒ ƒ ˆ ƒ ˆ x Š ƒ Œ z Ž Ž ƒ n z ˆ Œ Ž ˆ ˆ Ž Œ Ž ˆ ˆ Œ Ž ˆ k u ˆ Š } Š Ž ˆ ˆ ƒ Ž ˆ Ž ƒ Œ Ž Œ Ž ƒ ˆ k k n z ˆ u ˆ Š ƒ ƒ ˆ Ž z Ž Ž ƒ ˆ ƒ Š Œ ˆ ƒ Œ Ž ƒ ƒ Ž Œ ˆ Ž Ž Ž ˆ ƒ ˆ Š ƒ ˆ Ž ˆ ƒ š z Ž Ž ƒ Œ Ž Š ƒ Œ Ž k k z ˆ Ž u ƒ Œ Ž š Ž ˆ ƒ Š ˆ n z ˆ Ž ˆ Œ Œ Ž z Ž Ž ƒ Œ Š ˆ k œ k { Œ ˆ ƒ z Ž Ž ƒ ˆ Ž u ƒ Œ Ž š Ž ˆ ƒ ƒ ˆ Ž š Ž š n Ž ˆ u ƒ ˆ Ž ˆ ƒ n z ˆ Š k k n Ž ˆ u ƒ ˆ Ž x ˆ ƒ ˆ Ž s ˆ s Ž Š ƒ ˆ ƒ u m ˆ ƒ ˆ ƒ } Ž ž ƒ } š Ž ˆ ƒ ƒ ˆ Ž ˆ ƒ ˆ n z ˆ Œ Ž ˆ ˆ ƒ ˆ ˆ ˆ Ž ƒ Ž z ˆ l Š k Ÿ k z ˆ l Š x ƒ ˆ ƒ ˆ ƒ Š Ž ƒ ˆ ƒ Ž z Ž Ž ƒ ˆ ƒ n z ˆ } Š Ž ƒ ˆ ƒ } ˆ ƒ ˆ ˆ ˆ ˆ n z ˆ Ž z ˆ Ž k k { Œ ˆ ƒ z Ž Ž ƒ ˆ Ž ˆ Š n z ˆ ƒ ƒ Ž n Ž ˆ u ƒ ˆ Ž ª «ª ª ± ² ³ ª µ ³ µ ª ³ ¹ µ º ± ³ ˆ z ˆ Ž k x n Ž ˆ u ƒ ˆ Ž š Ž Œ ˆ ƒ Ž š ˆ Š Š Ž» ¼ Ž z ˆ l Š k ˆ k x z ˆ l Š š ƒ n z ˆ Ž z ˆ Ž k x n Ž ˆ u ƒ ˆ Ž š Š Œ ˆ Ž ƒ s u n Ž ƒ ˆ ˆ ƒ š z ˆ Ž k x z ˆ Ž š Œ n z ˆ Š k k x n z ˆ Ž Š ƒ ˆ Ž ˆ Ž ƒ Ž ƒ ˆ z ˆ Ž k k x n z ˆ ƒ Š ˆ ƒ Œ ˆ Ž ƒ ˆ Ž Š ƒ š ƒ Ž ƒ ˆ w u ½ Ž Ž ˆ k k x n z ˆ Ž Š ƒ Ž Š ˆ ƒ Œ Ž Ž ˆ ƒ z ˆ Ž k k l n z ˆ Ž Ž Ž ƒ } z ˆ Ž Š ˆ ˆ z ˆ l Š ˆ ¾ ¾ À Ÿ ¾ œ Á ˆ ƒ ˆ Ž n Ž ˆ u ƒ ˆ Ž ˆ j j œ j j Ÿ k œ k x z ˆ Ž Ž Š Š n z ˆ Ž Œ Š ˆ Ž Ž ˆ ˆ ƒ Ž ƒ ˆ ƒ Š ƒ ˆ k x ˆ } Ž Ž Ž ƒ Ž ˆ ƒ Œ Ž Ž ˆ ƒ Ž Š ƒ Ž ˆ Œ Š ˆ ƒ Œ Ž } n z ˆ ˆ Š k t ˆ Š Œ Ž ƒ ƒ Ž ˆ Š k x n z ˆ Ž Š ƒ Ž Š Ž Š ƒ ƒ Ž ˆ n x z Œ Š ˆ ƒ Œ Ž k u Ž } ˆ ˆ ˆ ƒ ˆ ƒ ƒ Ž Ž Š ƒ Ž Œ Š ˆ ˆ n z ˆ k k q Ž ƒ ˆ ˆ ˆ Œ Š ˆ Ž Ž ƒ ƒ Š ƒ ˆ } z ˆ Ž } { Œ ˆ ƒ z Ž Ž ƒ ˆ Ž Ž ƒ Š Ž Œ ˆ Ž Œ Œ ƒ ˆ Ž Œ Š ˆ k c d e f g h d i d

305 Ÿ k u Ž Š ƒ Ž Œ Š ˆ ƒ à Œ ˆ Š ƒ Œ k Ž Ž ƒ Ž Œ Œ ƒ ˆ ˆ ƒ Œ Š ˆ Ž Ž ˆ š k x ˆ ƒ ˆ ƒ š ƒ Š ˆ Ž Š ƒ } k k ˆ ƒ Š ƒ } ˆ Ž Œ Œ ƒ ˆ Š ƒ Ž ˆ ˆ ˆ ƒ ˆ ƒ ˆ Ž ƒ ˆ ƒ ˆ Ž k ƒ ˆ Š Ž ˆ ƒ Š Ž ƒ ˆ ˆ } Œ ˆ ˆ ƒ Ž Š ˆ Ž Š ƒ Ž Ž ƒ ˆ Œ Š ˆ ˆ ƒ ƒ ˆ Ž ˆ Ž Š ƒ k À k z ˆ Ž š Ž ƒ ˆ ƒ Ž z ˆ l Š k x z ˆ Ž Š ˆ ƒ ˆ Ž ƒ Ž ƒ ˆ ƒ š Ž Œ Œ ƒ ˆ ƒ ƒ s u n k l ˆ ˆ ˆ Œ Œ ˆ Ž ƒ ˆ ˆ ƒ ˆ ƒ Ž ˆ Š Ž Ä } z ˆ Ž Š Ž ƒ ˆ n Ž ˆ u ƒ ˆ Ž š ƒ š Ž Š ƒ ˆ k x n Ž ˆ u ƒ ˆ Ž š Œ Š ˆ š z ˆ l Š k u Œ Š Š ˆ Ž z ˆ l Š š ƒ À ¾ ˆ k j k x ƒ ˆ Œ Ž Š ˆ Š ƒ n z ˆ Ž Š Œ Ž k x Š Œ Ž Ž Š Š ˆ ƒ ˆ ˆ ƒ Ž š ˆ Œ ˆ Ž n Ž ˆ u ƒ ˆ Ž k k x Ž ƒ Œ ˆ ƒ Ž z ˆ l Š š ˆ ƒ ˆ k q Œ ƒ ˆ Ž ˆ Ž ƒ š Œ ƒ ƒ Š Œ Ž ƒ Š Š ˆ ƒ Ž ˆ ˆ ˆ ƒ ˆ Ž ƒ Ž ˆ n z ˆ Ž Œ Œ ƒ ˆ ƒ ƒ s u n Š ƒ Œ ˆ ƒ k m ˆ Ž ˆ ˆ ƒ ˆ Ž ƒ ˆ ƒ Ž Œ Œ ƒ ˆ ˆ Œ Ž ˆ s u n Š ƒ Ž ƒ ˆ Ž Œ ˆ z ˆ Ž ƒ ˆ } Ž ˆ ˆ Ž Š ƒ } ˆ ƒ ˆ ƒ ˆ Ž ƒ ˆ Ž ˆ Š Š ˆ k x ˆ ƒ ˆ Ž ƒ ˆ Ž ƒ Ž ˆ Ž ˆ Ž Œ Œ ƒ ˆ Š ˆ ƒ Š ˆ Ž k Å Æ Ç È É Ê Ë Ç Ì Í Î Ï Ð Ð Ï Ñ È Ò Ó Ï Ñ È Ï Ô Ï È Õ Ë Ë Ó Ñ Ï Ö Ç Ê Ò È É Ê Ë Ç Ì Í Î Ï Ð Ð Ï Ñ È Ê Ð Æ Ç È È Ò Ø Ù Ï Ì Ð Ú c d e  g h d i d

306 Ü Ý Þ ß à á ß â ã ä ã à á â ã Ý å ã å â æ ç è Þ ß ä æ á é ã å ê ë á ß ì è ß Ý ê ß á í ã é á ä Ý å î ç å ã ç å ä ç â æ á â ä á ß ß ã ç é ß ç é à Ý å é ã ï ã ð ã â ã ç é á ð Ý å ê ñ ã â æ ã â ò ó ð â æ Ý Þ ê æ â æ ç ä á ß ì ã é ã é é Þ ç ì ã å ô Ý Þ ß å á í ç õ ã â é æ Ý Þ ð ì ï ç ä Ý å é ã ì ç ß ç ì è ç å å é ô ð î á å ã á ö Þ ß å à ã ç ë Ý í í ã é é ã Ý å ø è ö ë ù à ß Ý à ç ß â ô á å ì é æ Ý Þ ð ì ï ç Þ é ç ì ñ ã â æ ê Ý Ý ì ú Þ ì ê í ç å â ã å á ä ä Ý ß ì á å ä ç ñ ã â æ ã â é á à à ð ã ä á ï ð ç á ä â ã î ã â ô ð ã í ã â é ò û ò ö æ ç è Þ ß ä æ á é ã å ê ë á ß ì ã é à ß Ý î ã ì ç ì â Ý ç í à ð Ý ô ç ç é ï á é ç ì Ý å â æ ç ã ß å ç ç ì â Ý à Þ ß ä æ á é ç ï Þ é ã å ç é é ü ß ç ð á â ç ì ê Ý Ý ì é á å ì é ç ß î ã ä ç é ò ó ä á ß ì í á ô ï ç ß ç î Ý ç ì á â á å ô â ã í ç ï ô è ý ë þ á å Ý ß â æ ç è ö ë ï á é ç ì Ý å ä æ á å ê ç Ý ÿ á é é ã ê å í ç å â Ý ß ð Ý ä á â ã Ý å Ý ß ÿ Ý ß á å ô ß ç á é Ý å ò ö æ ç ä á ß ì ã é å Ý â á å ç å â ã â ð ç í ç å â å Ý ß ß ç ÿ ð ç ä â ã î ç Ý ÿ â ã â ð ç Ý ß à Ý é ã â ã Ý å ò ò ö æ ç ä á ß ì ã é ÿ Ý ß ï Þ é ã å ç é é ü ß ç ð á â ç ì à Þ ß ä æ á é ç é Ý å ð ô à ç ß é Ý å á ð ä æ á ß ê ç é í á ô å Ý â ï ç í á ì ç â Ý â æ ç ä á ß ì ò ò Ü Ý Þ á ß ç â æ ç Ý å ð ô à ç ß é Ý å á Þ â æ Ý ß ã ç ì â Ý Þ é ç â æ ç è Þ ß ä æ á é ã å ê ë á ß ì á å ì á ß ç ß ç é à Ý å é ã ï ð ç ÿ Ý ß ç å é Þ ß ã å ê â æ á â á ð ð à Þ ß ä æ á é ç é ñ ã â æ â æ ç ä á ß ì á ß ç ÿ Ý ß è ö ë Þ é ç ò ý Ý â ß á å é ÿ ç ß é Ý ÿ â æ ç è Þ ß ä æ á é ã å ê ë á ß ì á ß ç à ç ß í ã â â ç ì ò ò è è ö è ë ó ý ë ó õ ý ë ý þ ö ý ö ö ö ý ö ë ó ó ý Ü è ý ó ë ó õ ë ó ý þ ë ý ó è è è ó ö ý è ö ë ý ò è è ö ë ó ó Ü ö ý ë è ý ó Ü ó ë ö ý è ö ó ý ý ë ý ö ý ó ö ý ò ö æ ç ë Ý í í ã é é ã Ý å í á ô õ ã å ã â é é Ý ð ç ì ã é ä ß ç â ã Ý å õ ç ç ß ä ã é ç á å ô ð ç ê á ð ß ç ä Ý Þ ß é ç á î á ã ð á ï ð ç â Ý ã â â Ý ß ç ä Ý î ç ß á å ô à ç ß é Ý å á ð ä æ á ß ê ç é â Ý â æ ç è Þ ß ä æ á é ã å ê ë á ß ì õ á å ì Ý ß ß ç ÿ ç ß â æ ç í á â â ç ß â Ý â æ ç á à à ß Ý à ß ã á â ç á Þ â æ Ý ß ã â ã ç é ÿ Ý ß ä ß ã í ã å á ð à ß Ý é ç ä Þ â ã Ý å ò ò ë á ß ì æ Ý ð ì ç ß é á ß ç ç à ç ä â ç ì â Ý ä Ý í à ð ô ñ ã â æ ã å â ç ß å á ð ä Ý å â ß Ý ð à ß Ý ä ç ì Þ ß ç é ã å Ý ß ì ç ß â Ý à ß Ý â ç ä â è ö ë á é é ç â é ò ö æ ã é ã å ä ð Þ ì ç é ç ç à ã å ê ß ç ä ç ã à â é õ ß ç ä Ý å ä ã ð ã å ê è Þ ß ä æ á é ã å ê ë á ß ì í Ý å â æ ð ô í ç í Ý é â á â ç í ç å â é á å ì ÿ Ý ð ð Ý ñ ã å ê à ß Ý à ç ß ä á ß ì é ç ä Þ ß ã â ô í ç á é Þ ß ç é ò ò ë á ß ì æ Ý ð ì ç ß é á ß ç ß ç é à Ý å é ã ï ð ç ÿ Ý ß ß ç ä Ý å ä ã ð ã å ê â æ ç ã ß è Þ ß ä æ á é ã å ê ë á ß ì í Ý å â æ ð ô í ç í Ý é â á â ç í ç å â á å ì ß ç é Ý ð î ã å ê á å ô ì ã é ä ß ç à á å ä ã ç é ï ô ä Ý å â á ä â ã å ê â æ ç é Þ à à ð ã ç ß á å ì ô Ý Þ ß è ß Ý ê ß á í ó ì í ã å ã é â ß á â Ý ß ò ò á ä æ á ä ä Ý Þ å â ã é á é é ã ê å ç ì á ä Ý é â á ä ä Ý Þ å â ã å ê ä Ý ì ç ï ô í á å á ê ç í ç å â á å ì à Þ ß ä æ á é ç é í á ô ï ç á Þ â Ý í á â ã ä á ð ð ô ä æ á ß ê ç ì â Ý â æ ç ä Ý ì ç ò ö æ ç ä Ý ì ç ä á å Ý å ð ô ï ç ä æ á å ê ç ì ï ô í á å á ê ç í ç å â á à à ß Ý î á ð ò ÿ ä æ á å ê ç ì õ á å ç ñ á ä ä Ý Þ å â ä Ý ì ç ì Ý ç é å Ý â á ÿ ÿ ç ä â à á é â ä æ á ß ê ç é õ Ý å ð ô ÿ Þ â Þ ß ç ä æ á ß ê ç é ò ò ó ð Ý é â Ý ß é â Ý ð ç å ä á ß ì í Þ é â ï ç ß ç à Ý ß â ç ì ã í í ç ì ã á â ç ð ô ï ô â ç ð ç à æ Ý å ç â Ý è ý ë þ á å ë Þ é â Ý í ç ß ç ß î ã ä ç á â ø ù ü ò ó ÿ â ç ß å Ý â ã ä ç õ ã å á ä ä Ý ß ì á å ä ç ñ ã â æ ç ê Þ ð á â ã Ý å õ ô Ý Þ ß ð ã á ï ã ð ã â ô ÿ Ý ß Þ å á Þ â æ Ý ß ã ç ì Þ é ç Ý ÿ â æ ç ä á ß ì é æ á ð ð å Ý â ç ä ç ç ì â æ ç ð ç é é ç ß Ý ÿ Ý ß â æ ç á í Ý Þ å â â Ý ñ æ ã ä æ â æ ç Þ å á Þ â æ Ý ß ã ç ì Þ é ç à ç ß â á ã å é ò å á Þ â æ Ý ß ã ç ì Þ é ç Þ å ì ç ß ç ê Þ ð á â ã Ý å í ç á å é â æ ç Þ é ç Ý ÿ á ä ß ç ì ã â ä á ß ì ï ô á à ç ß é Ý å õ Ý â æ ç ß â æ á å â æ ç ä á ß ì æ Ý ð ì ç ß õ ñ æ Ý ì Ý ç é å Ý â æ á î ç á ä â Þ á ð õ ã í à ð ã ç ì õ Ý ß á à à á ß ç å â á Þ â æ Ý ß ã â ô ÿ Ý ß é Þ ä æ Þ é ç õ á å ì ÿ ß Ý í ñ æ ã ä æ â æ ç ë á ß ì æ Ý ð ì ç ß ß ç ä ç ã î ç é å Ý ï ç å ç ÿ ã â ò û ò ó ë á ß ì æ Ý ð ì ç ß í Þ é â ã í í ç ì ã á â ç ð ô é Þ ß ß ç å ì ç ß â æ ç ä á ß ì Þ à Ý å â ç ß í ã å á â ã Ý å Ý ÿ ç í à ð Ý ô í ç å â ø ã ò ç ò õ ß ç â ã ß ç í ç å â Ý ß î Ý ð Þ å â á ß ô ã å î Ý ð Þ å â á ß ô â ç ß í ã å á â ã Ý å ù Ý ß á â á å ô â ã í ç ç ã â æ ç ß â æ ç è ö ë Ý ß ë á ß ì é é Þ ç ß ß ç Þ ç é â é ò ó â â æ ã é à Ý ã å â õ å Ý ÿ Þ ß â æ ç ß Þ é ç Ý ÿ â æ ç á ä ä Ý Þ å â ã é á Þ â æ Ý ß ã ç ì ò á ä å Ý ñ ð ç ì ê ç â æ á â æ á î ç ß ç ä ç ã î ç ì á è ö ë è Þ ß ä æ á é ã å ê ë á ß ì á å ì â æ á â æ á î ç ß ç á ì õ Þ å ì ç ß é â á å ì õ á å ì á ê ß ç ç â Ý á ï ã ì ç ï ô â æ ç é ç ß Þ ð ç é ò ë ó ý ó ö è ý ö ë ó ý ó ó ö c d e Û g h d i d

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