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TITLE II-NORTHEAST RAIL AUTHORITY COMPACT
CONSENT AND APPROVAL OF COMPACT
Sec. 201. The consent and approval of Congress is hereby given to the States of Massachusetts, Rhode Island, Connecticut, New York to negotiate and enter into the Northeast rail authority compact for the purpose of creating a multistate authority to own, lease, or otherwise acquire the right to operate a passenger rail transportation system within the Northeastern States. Such compact shall be as follows:
"NORTHEAST RAIL AUTHORITY COMPACT “The states of Massachusetts, Rhode Island, Connecticut, and New York, hereinafter collectively referred to as signatories, any one of them being referred to as a signatory, do hereby covenant and agree as follows:
“There is hereby created the Northeast Rail District, hereinafter referred to as the 'District', which shall embrace Massachusetts, Rhode Island, Connecticut, and New York.
“ARTICLE II "The signatories hereby create the Northeast Rail Authority, hereinafter referred to as the 'Authority', which shall be a body corporate and politic, having the powers and jurisdiction hereinafter enumerated, and such other and additional powers and duties as may be conferred upon it by the legislatures of the signatories and concurred in and approved by Congress. The Authority shall have the right and authority to own, lease, or otherwise acquire the right to operate a passenger rail transportation system within the District.
"1. The Authority shall consist of four Commissioners, one each to be appointed by the Governors of Massachusetts, Rhode Island, Connecticut, and New York. Each Commissioner so appointed shall serve for a term of four years.
“2. The Authority shall have a Federal representative, if such a representative is appointed by the Secretary of Commerce pursuant to title III of the Northeast Rail Authority Act of 1965. The function of such representative shall be (a) to have the authority to veto any matter relating to the issue and sale of bonds or other indebtedness guaranteed by the Federal Government pursuant to such title III, and (b) to report to the Secretary of Commerce with respect to the activities of the Authority.
"3. No Commissioner shall have financial interest in any corporation or other entity engaged in the business of providing public passenger transportation within the District or engaged in the manufacture or selling of passenger transportation facilities.
"4. The Authority shall annually elect a chairman from its number and may appoint such other officers as it may require for the performance of its duties, and shall fix and determine their qualifications and duties.
“5. Each Commissioner shall receive basic compensation at the rate of $100 per diem, to be paid by the Authority as current expenses. Commissioners shall be reimbursed for actual expenses, including traveling and subsistence expenses incurred by them in the performance of their duties.
“6. The Authority shall appoint an Executive Director, who shall be responsible for the day-to-day management of the operations conducted by the Authority. The Executive Director shall receive compensation at the rate of $30,000 per annum.
“7. In addition, the Authority may employ such engineering, technical, legal, clerical, and other personnel on a regular, part-time, or consulting basis as in its judgment may be necessary for the discharge of its functions. The Authority shall not be bound by any statute or regulation of any signatory in the employment or discharge of any officer or employee, except as may be contained in this compact.
"No action may be taken by the Authority unless a majority of the Commissioners concur therein, but nothing in this Article shall be construed to limit in any respect the power of the Authority to delegate to its officers and employees the administration of such matters as it deemns advisable. Three Commissioners shall constitute a quorum of the Authority.
“Except as otherwise specifically provided in this compact, the Authority shall have power to:
“(1) adopt, alter, and use a corporate seal, and such seal shall be judicially noticed ;
“(2) adopt, amend, and repeal its own by-laws, rules, and regulations;
“(3) sue and be sued in its corporate name in any court of competent Jurisdiction;
“(4) make contracts, as authorized in this compact; “(5) accept gifts or donations of property;
"(6) acquire, by purchase, lease, condemnation, or in other lawful manner, any property whether real, personal, or mixed, tangible or intangible, and any interest therein; hold, maintain, use, and operate such property; sell, lease or otherwise dispose of the same at such time, in such manner, and to the extent deemed necessary or appropriate to carry out its functions;
“(7) operate all facilties acquired or constructed by it or enter into agreements with railroad corporations, government agencies or other persons for the operation of its or their facilities, the use of its or their operating rights, or the provision of passenger transportation services making use of other facilities and operating rights;
“(8) determine the character of and the necessity for its obligations and expenditures, and the manner in which they shall be incurred, allowed, and paid;
"(9) set fares, tariffs, and other rates and charges to the public for the services rendered by its facilities;
"(10) execute, in accordance with its by-laws, rules or regulations all instrument necessary or appropriate in the exercise of any of its powers;
“(11) settle and adjust claims held by it against other persons or parties and by other persons or parties against it; and,
“(12) take such actions as may be necessary or appropriate to carry out the powers and duties specifically conferred upon it by this compact.
“ARTICLE VI "Insofar as possible the fares, tariffs, and other rates and charges to the public set by the Authority for the services rendered by its facilities shall be established at such levels that the revenues of the Authority may be reasonably expected to cover all costs of operating and maintaining the facilities under the administration of the Authority, including depreciation and payment of interest on its obligations. The Authority is not required, however, to operate any particular portion of its facilities without loss, but may set fares, tariffs or other rates and charges on the basis of all of its facilities considered as a whole. When, in the opinion of the Authority, it is in the best interest of the Authority not to charge fares, tariffs, or other rates and charges for a paricular facility, it shall not be required to levy such charge. The Authority may enter into agreements with railroad corporations, government agencies or other persons or entities for the establishment of joint or combination fares.
“ARTICLE VII “1. The Authority shall annually submit to each of the signatories a budget of requirements for the next ensuing year. To the extent that revenues from operation as conducted by the Authority are inadequate to meet the expenses of the Authority, such expenses shall be borne by each of the signatories in the percentage which the passenger miles travelled on the railroads owned, leased, or otherwise operated by the Authority within such State's boundaries bears to the total passenger miles travelled on railroads owned, leased, or otherwise operated by the Authority within the District. The percentage of such expenses to be borne by each of the signatories shall be set forth in such budget and shall be subject to the approval of the chief executive officer or officers of such signatory.
“2. At such time as the revenues per annum of the Authority may exceed the expenses (including payment of indebtedness) per annum of the Authority, the Commissioners at their discretion may make partial reimbursement to the signatories of the payments made in accordance with Article VII, Par. 1, of this compact, such reimbursement to be made at a prudent rate and in the same ratio as is set forth in Article VII, Par. 1 of this compact.
“3. The signatories agree to appropriate for the expenses of the Authority their proportion of the budget determined in the manner set forth herein and to pay such appropriation to the Authority.
“4. The Authority shall keep accurate books of account, showing in full its receipts and disbursements, and said books of account shall be open at any reasonable time for inspection by such representatives of the respective signatories as may be duly constituted for that purpose.
“1. The Authority is authorized to issue and sell bonds, notes, and other evidences of indebtedness, hereinafter collectively referred to as 'bonds', in an amount not exceeding $500,000,000 outstanding at any time to assist in financing its operations pursuant to the powers granted hy this compact. The Authority is authorized to enter into binding covenants with the holders of bonds, and with 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 officers 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.
"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; (d) assurances of employment to employees of acquired railroad companies and priority of reemployment of employees terminated or laid off ; and (e) 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 extract any necessary legislation to achieve the objectives of this compact.
“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.
“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
Sec. 301. For the purposes of this title
(3) The term "authority” means the Northeast Rail Authority established pursuant to the Northeast 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, mod
ernizing, 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 purposes decleared 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 bonds (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 guaranties pursuant to this title shall not exceed $500 million.
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 constent 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 to 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 title.
(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 REPRESENTATIVE ON AUTHORITY AND OTHER ASSISTANCE FOR SECRETARY
Sec. 307. (a) In order to more effectively carry out his functions pursuant to this title, the Secretary may appoint a Federal representative to the authority as authorized in article III of the northeast 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.