« AnteriorContinuar »
the trustee, if any, under any indenture, resolution, or other agreement entered into in connection with the issuance thereof.
“2. Bonds issued by the Authority shall be negotiable instruments unless otherwise specified therein, shall be in such forms and denominations, shall be sold at such times and in such amounts, shall mature at such time or times, shall be sold at such prices, shall bear such rates of interest, may be redeemable before maturity at the option of the Authority in such manner and at such times and redemption premiums, may be entitled to such relative priorities with respect to principal and interest payments, and shall be subject to such other terms and conditions, as the Authority may determine.
"3. Bonds issued by the Authority pursuant to this compact shall be legal investments under the laws of each of the signatories for all State and municipal officiers and bodies, all banks, bankers, trust companies, savings banks, savings and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business, and all administrators, executors, guardians, trustees and other fiduciaries, and such persons and entities may properly and legally invest any funds, including capital, within their control; and said bonds shall be securities which may properly and legally be deposited with and shall be received by any State or municipal officer or agency for any purpose which the deposit of bonds or other obligations of the signatories are now or may hereafter be authorized.
"4. The bonds shall at all times be free from taxation by any signatory. The Authority shall be regarded as the instrumentality of the several signatories for the purpose of operating and developing passenger rail transportation and effectuating the pledge of the signatories in this compact, but it shall have no power to pledge the credit of any signatory or to impose any obligation upon any signatory, except as expressly provided in this compact.
"5. Bonds issued by the Authority may be guaranteed by the signatories or by the Federal Government pursuant to title III of the New York-Connecticut Rail Authority Act of 1965, or by the signatories and the Federal Government.
“ARTICLE IX "The Authority is authorized to make payments to State and local governments in lieu of property taxes upon property within the District which was subject to State and local taxation before acquisition by the Authority, except that such payments will not be required in years when the annual budget as submitted to the signatories indicates that revenues will be less than expenses. Such payments shall be in the amounts, at the times, and upon such terms as the Authority in its discretion determines to be appropriate. No payment shall be made in excess of the taxes which would have been payable for such property except where special burdens are placed upon the State or local government by the activities of the Authority or its agents.
"In the acquisition of any transportation facilities in the District the Authority shall make arrangements to protect the interests of employees affected by such acquisition. Such arrangements shall include, without being limited to, such provisions as may be necessary for (a) the preservation of rights, privileges, and benefits (including continuation of pension rights and benefits) under existing collective bargaining agreements or otherwise ; (b) the continuation of collective bargaining rights; (c) the protection of individual employees against a worsening of their positions with respect to their employment; (a) assurances of employment to employees of acquired railroad companies and priority of reemployment of employees terminated or laid off ; (e) necessary moving expenses, and (f) paid training or retraining programs. Such arrangements shall include provisions protecting individual employees against a worsening of their positions with respect to their employment which shall in no event provide benefits less than those established pursuant to section 5(2) (f) of the Act of February 4, 1887 (24 Stat. 379), as amended. The contract for the granting of any such assistance shall specify the terms and conditions of the protective arrangements.
"This compact shall become effective ninety (90) days after the date of adoption thereof by the last signatory to adopt such compact.
“This compact may be amended from time to time with the consent of all of the signatories and the Congress of the United States.
"Each of the signatories pledges to each of the other signatories faithful cooperation in the promotion of passenger rail transportation within the District and, in furtherance thereof, agrees to enact any necessary legislation to achieve the objectives of this compact.
“ARTICLE XIV "1. If any part or provision of this compact or the application thereof to any person or circumstances be adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision or application directly involved in the controversy in which such judgment shall have been rendered and shall not affect or impair the validity of the remainder of this compact or the application thereof to other persons or circumstances and the signatories hereby declare that they would have entered into this compact or the remainder thereof had the invalidity of such provision or application thereof been apparent.
“2. In accordance with the ordinary rules for construction of interstate compacts, this compact shall be liberally construed to eliminate the evils described therein and to effectuate the purposes thereof.
"ARTICLE XV “Other States may join this compact on the same terms and under the same obligations as set forth in the preceding articles of this compact with the consent of all of the signatories and the Congress of the United States."
TITLE III-FEDERAL BOND GUARANTY AND OTHER ASSISTANCE
Sec. 301. For the purposes of this title
(3) The term "authority" means the New York-Connecticut Rail Authority established pursuant to the New York-Connecticut rail authority compact.
(4) The term "additions and betterments or other capital expenditures” means expenditures for the acquisition or construction of property used in transportation service, chargeable to the road, property, or equipment investment accounts, in the uniform system of accounts prescribed by the Commission.
(5) The term "expenditures for maintenance of property” means expenditures for labor, materials, and other costs incurred in maintaining, repairing, modernizing, or renewing equipment, road, or property used in transportation service chargeable to operating expenses in accordance with the uniform system of accounts prescribed by the Commission.
Sec. 302. (a) In order to carry out the purpose declared in section 201 of this Act, the Secretary may, after consultation with and consideration of the views and recommendations of the Commission and upon terms and conditions prescribed by him and consistent with the provisions of this title, guarantee any honds (including other evidences of indebtedness) which are issued by the authority for the purpose of financing or refinancing (1) additions and betterments or other capital expenditures, or to reimburse the authority for expenditures made from its own funds for such additions and betterments or other capital expenditures or (2) expenditures for the maintenance of property.
(b) The aggregate principal amount of all guarantees pursuant to this title shall not exceed $500,000,000.
SEC. 303. No guaranty shall be made pursuant to this title
(1) if in the judgment of the Secretary the bonds involved are at a rate of interest which is unreasonably high ; or
(2) if the terms of such bonds permit redemption more than fifteen years after the date thereof.
SEC. 304. The Secretary may consent to the modification of the provisions as to rate of interest, time of payment of interest or principal, security, if any, or other terms and conditions of any bonds which he has guaranteed pursuant of this title, or the renewal or extension of any such bonds, whenever the Secretary shall determine it to be equitable to do so.
PAYMENT ON GUARANTY
Sec. 305. (a) Any payment required to be made as a consequence of any guaranty pursuant to this title shall be made by the Secretary of the Treasury from funds hereby authorized to be appropriated in such amounts as may be necessary for the purpose of carrying out the provisions of this section.
(b) In the event of any default on any bonds guaranteed pursuant to this title, and payment in accordance with the guaranty by the United States, the Attorney General shall take such action as may be appropriate to recover the amount of such payment, with interest, from the authority.
SEC. 306. The Secretary shall prescribe and collect a guaranty fee in connection with any guaranty pursuant to this title. Such fees shall not exceed such amounts as the Secretary estimates to be necessary to cover the administrative costs of carrying out the provisions of this title. Sums realized from such fees shall be deposited in the Treasury as miscellaneous receipts.
FEDERAL SHARE OF THE AUTHORITY'S OPERATING COSTS IN EXCESS OF REVENUES
Sec. 307. (a) The Secretary shall pay to the authority for each year during which the cost of operations conducted by the authority exceeded revenues from such operations, an amount equal to 3313 per centum of such excess.
Such per centum shall be the Federal share of operation deficits incurred by the authority. Prior to making such payment, the Secretary shall receive from the authority a comprehensive plan and/or report as to the purposes for which this amount is to be expended.
(b) The Secretary is authorized to receive any reimbursement by the authority of amounts paid pursuant to this section and amounts received as such reimbursement shall be covered into the Treasury as miscellaneous receipts.
(c) There are authorized to be appropriated such amounts as may be neces. sary for payments pursuant to subsection (a).
FEDERAL REPRESENTATIVE ON AUTHORITY AND OTHER ASSISTANCE FOR SECRETARY
SEC. 308. (a) In order to more effectively carry out his functions pursuant to this title, the Seretary may appoint a Federal representative to the authority as authorized in article III of the New York-Connecticut rail authority compact.
(b) To permit the Secretary to make use of such other expert advice and services as he may require in carrying out the provisions of this title, he may use available services and facilities of other departments, agencies, and instrumentalities of the Government, with their consent and on a reimbursable basis where necessary.
(c) Departments, agencies, and instrumentalities of the Government shall exercise their powers, duties, and functions in such manner as will assist in carrying out the objectives of this Act.
S. 1234-A SECTION-BY-SECTION ANALYSIS
(Introduced by Senator Jacob Javits on February 23, 1965)
TITLE 1--SHORT TITLE AND STATEMENT OF FINDINGS AND DECLARATIONS OF POLICY
Sections 101 and 102. These sections provide that the act may be cited as the “New York-Connecticut Rail Authority Act of 1965" and state a congressional finding that commuter rail and passenger transportation should be preserved in the interest of the national defense and the general welfare of the Nation. Congress declares it a continuing policy and responsibility of the Federal Government to encourage the State governments to enter into a compact to create their own New York-Connecticut Rail Authority.
TITLE II-NEW YORK-CONNECTICUT RAIL AUTHORITY COMPACT
Section 201. This section grants the consent and approval of Congress to the States of New York and Connecticut to negotiate and enter into the New YorkConnecticut Rail Authority Compact for the purpose of creating a bi-state authority to own, lease or otherwise acquire the right to operate a passenger rail transportation system with such States. The section then sets forth the provisions of the compact in 15 articles as follows:
Articles 1 and 2. These articles create a New York-Connecticut rail district embracing these two States and create a New York-Connecticut Rail Authority as a corporate body having the right and authority to own, lease or otherwise acquire the right to operate a passenger rail transportation system within the district.
Article 3. The article states that the authority shall consist of four commissioners, two each to be appointed by the Governors of New York and Connecticut, each for a 4-year term. It also provides that a Federal representative shall have the power of veto on any matter relating to the issue and sale of bonds or other indebtedness guaranteed by the Federal Government pursuant to said title III. The article fixes the compensation of commissioners at the rate of $100 a day. It also provides for the appointment of an executive director, to be compensated at a rate established by the authority.
Article 4. States that no action may be taken by the authority unless a majority or more as may be provided in this compact of the commissioners concur therein, but permits the authority to delegate duties.
Article 5. Lists the powers of authority, including the power to operate facilities or enter into agreements with other parties for the operation of passenger transportation services; the power to set fares and tariffs for the services it renders; the power to acquire property by purchase, lease or condemnation, and other powers normally vested in such bodies.
Article 6. Directs the authority, insofar as possible, to set fares and tariffs at such levels that the revenues of the authority may be reasonably expected to cover costs of operating and maintenance.
Article 7. Provides that the authority shall annually submit to each of the signatories a budget for operating the authority for the next ensuing year which shall include information concerning operating deficits. The allocation of such deficits shall be made in accord with a formula established by the authority. Such formula and means of payment shall be consistent with the constitution and laws of the individual States, and shall be established only by unanimous consent of the commissioners. The authority shall notify the chief executive of each signatory State as to its share, which notice shall be transmitted by the chief executive to the signatory States' legislature for its consideration and appropriate action. The States' share of such amount shall be that in excess of the Federal share established in section 307 of this act.
Subsection 2. Where annual revenues exceed costs (including the payment of indebtedness) of the authority, the authority may reimburse the Federal Government for amounts paid to the authority to cover deficits. Such reimbursement shall be made at a prudent rate and in the same ratio as deficits were borne by the varoius signatories and the Federal Govern
ment. Article 8. Provides that the authority may sell bonds, notes and other evidences of indebtedness in an amount not exceeding $500 million to finance its operations. Provides that such bonds and other indebtedness shall be legal investments and shall be at all times free of taxation by the signatories. Bonds may be guaranteeed by the signatories or by the Federal Government pursuant to title III or by the signatories and the Federal Government.
Article 9. Provides that, except in years when the expenses of the authority exceed revenues, the authority may make payments to the States and local governments in lieu of property taxes upon property within the district which was subject to such taxes before acquisition by the authority.
Article 10. Provides that in the acquisition of any transportation facilities in the district, the authority shall make arrangements to protect the interests of employees affected by such acquisition.
Articles 11, 12 and 13. Provides that the compact shall become effective 90 days after the date of adoption; that it may be amended with the consent of all signatories and the Congress.
Article 14. Provides that a judgment by a competent court rendering a portion of this compact invalid shall not affect or impair the validity of the remainder
of the compact, and expresses the intent that the compact be liberally construed.
Article 15. Provides that other States may enter this compact on the same terms and under the same obligation as has been set forth in the preceding articles with the consent of all the signatories and of the Congress.
TITLE III-FEDERAL BOND GUARANTY
Section 301. Defines terms, including "additions and betterments or other capital expenditures” and “expenditures for maintenance of property."
Section 302. Authorizes the Secretary of Commerce to guarantee bonds and other evidence of indebtedness of the authority in principal amount not exceeding $500 million issued by the authority for the purpose of financing or refinancing additions and betterments and other capital expenditures for maintenance of property. Such guarantees are to be made upon terms and conditions prescribed by the Secretary of Commerce after consultation with the Interstate Commerce Commission.
Section 303. Provides that no guarantee shall be made if in the judgment of the Secretary the bonds or other indebtedness carry a rate of interest which is unreasonably high or if the terms of such bonds permit redemption more than 15 years after date of issuance.
Section 304. Provides the Secretary may consent to modifications as to rate of interest, time of payment, or other terms which he has guaranteed whenever he shall determine it to be equitable to do so.
Section 305. Provides that payment as required as a consequence of any guarantee under this action shall be made by the Secretary of the Treasury from funds authorized to be appropriated to carry out the provisions of this act. In the event of any default and payment in accordance with this title, the Attorney General is empowered to recover the amount of such payment with interest from the authority.
Section 306. Authorizes the Secretary to prescribe and collect a guarantee fee to cover administrative costs of extending guarantees under this title.
Section 307. Establishes a Federal share of the authority's operating costs in excess of revenues. As amended, the section provides that the Secretary of Commerce shall pay to the authority for each calendar year during which the authority encourage an operating deficit (revenues are exceeded by costs of operations) one-third of such deficit. This payment shall not be made for a period in excess of 2 years after the establishment of the authority. Prior to making such payments, the Secretary shall receive from the authority a comprehensive plan and/or report as to the purpose for which this amount is to be expended.
Subsection (b). The Secretary is authorized to receive any reimbursement by the authority payment pursuant to this section, and such amounts shall be covered in the Treasury as miscellaneous receipts.
Subsection (c). Provides for authorization of appropriations in such amounts as may be necessary for payments pursuant to subsection a. Section 308. Authorizes the Secretary of Commerce to appoint a Federal representative to the authority, as provided in article III of the New York-Connecticut Rail Authority Compact, and permits the Secretary to utilize the advice and services of other departments and agencies of the Government as he may require.
[S. 1234, 89th Cong., 1st sess.)
AMENDMENT Intended to be proposed by Mr. Javits to S. 1234, a bill to encourage the preserva
tion and development of a modern and efficient passenger rail transportation service in the northeastern seaboard area by granting the consent and approval of Congress to the States of New York and Connecticut to negotiate and enter into a compact to create their own New York-Connecticut Rail Authority, and by guaranteeing certain bonds of, and furnishing certain assistance to, such authority, viz:
On page 18, line 8 (after the period), insert the following: "No payment shall be made pursuant to this subsection for any period beyond the termination of the second complete calendar year of operations of the authority." Senator PASTORE. The fourth bill, S. 1289, was introduced by Senator Dodd on February 25, 1965, and cosponsored by Senator Pell. It would establish a 5-year program of Federal financial assistance to