(a) The Authority may create or abolish 1 or more subsidiary corporations and grant to such subsidiaries any or all of the powers to perform the duties, functions or activities granted by this chapter to the Authority necessary or convenient to execute the powers and duties and to undertake the functions and activities granted by this chapter to the Authority with respect to any transportation facilities including but not limited to public transportation facilities and specialized transportation facilities except as proscribed by this section.

The Authority is authorized to create or abolish a subsidiary corporation called the “Delaware Transit Corporation” to be the parent corporation of all subsidiaries created pursuant to this section to provide public transit services. The Delaware Transit Corporation is declared to be a public benefit corporation constituting a public instrumentality of the State exercising public and essential governmental functions. The Delaware Transit Corporation and its public transportation services subsidiaries shall be under the direction and supervision of a Director who shall be appointed by the Secretary, with the written approval of the Governor, and who shall serve at the pleasure of the Secretary. The Director of the Delaware Transit Corporation may appoint a Deputy Director.

Each subsidiary shall have all the privileges, immunities, tax exemptions and other exemptions of the Authority. A subsidiary shall be created by filing with the Secretary of State a certificate of incorporation. Such certificate shall be filed by the Secretary. Such certificate shall set forth (1) the name of the subsidiary; (2) the address of the subsidiary; (3) the term of existence of the subsidiary; (4) the name of the original administrator of the subsidiary; (5) the purposes of the subsidiary; (6) the powers of the subsidiary granted by the Authority; and (7) such other matters as the Secretary may deem appropriate. If the Authority shall determine that 1 or more of its subsidiaries shall be a public benefit corporation, constituting a public instrumentality of the State exercising public and essential governmental functions, such certificate shall make such recital and such subsidiary shall be a body politic and corporate of the State.

The Authority shall have no power or right (1) to grant any subsidiary the power to issue bonds, notes or other obligations of the subsidiary evidencing an obligation of the subsidiary to repay borrowed money, except that any subsidiary may borrow money for operating expenses for no more than 12 months in such amounts as may be approved in writing by the Secretary; or (2) to grant, donate, pledge, assign or otherwise transfer or create an obligation to transfer any revenues of the Authority derived from the operation of the Delaware Turnpike.

Chapter 69 of Title 29 shall not apply to any contracts between any subsidiary and an agency or department of the State or any of its political subdivisions. Except as otherwise provided by law, all agencies and departments of the State and any of its political subdivisions that contract with subsidiaries for service shall provide payment for such services at least 1 month prior to the rendering of such service. Subsidiaries will provide such agencies a status of their respective accounts on a monthly basis.

(b) (1) All subsidiaries operating any public transportation facility or specialized transportation facility shall have authority to bargain collectively with labor organizations representing employees and may enter into agreements with such organizations relative to wages, salaries, hours, working conditions, health benefits, pensions and retirement allowances of such employees.

(2) In the case of any labor dispute between such a subsidiary and its employees where collective bargaining does not result in a settlement, the same may be submitted at the written request of either party to final and binding arbitration pursuant to any agreement entered into between the subsidiary and the employees so providing, or, in the absence of such provisions, with the written consent of both parties to an arbitration board composed of 3 persons, 1 appointed by the subsidiary, 1 appointed by the labor organization representing the employees and a third member to be agreed upon by the subsidiary and the labor organization or, if no such third member is mutually acceptable, selected from a list of 5 persons, to be furnished by the American Arbitration Association at the request of either party, by alternately striking 1 name until only 1 name remains.

(3) The determination of the majority of the board of arbitration thus established shall be final and binding on all matters in dispute.

(4) No employee of such a subsidiary shall strike while in the performance of official duties.

62 Del. Laws, c. 164, §§ 1, 2; 63 Del. Laws, c. 179, §§ 36-38; 69 Del. Laws, c. 435, §§ 11-15; 70 Del. Laws, c. 186, § 1.