« AnteriorContinuar »
operations. Provides that such bonds and other indebtedness shall be legal investments and shall be at all times free of taxation by the signatories.
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, 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. Pledges cooperation between the signatory states.
Article 14: Provides that a judgment by any 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 intention that the compact be liberally construed.
Article 15: Provides that other States may join this compact on the same terms and under the same obligations as have 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. "Additions and betterments or other capital expenditures" means expeditures for the acquisition or construction of property used in transportation service, chargeable to the road, property, or equipment investment accounts. “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. 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 and expenditures for maintenance of property. Such guarantees are to be made upon terms and conditons prescribed by the Secretary of Commerce after consultation with the Interstate Commerce Commission. Section 308
States 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
Permits the Secretary to consent to modifications as to rate of interest, time of payment or other terms and conditions of bonds which he has guaranteed, whenever he shall determine it to be equitable to do so. Section 305
Provides that any payment required as a consequence of any guarantee under this act 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 of bonds guaranteed pursuant to this title 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 the administrative costs of extending guarantees pursuant to this title. Section 307
Authorizes the Secretary of Commerce to appoint a Federal representative to the authority, as provided in article III of the Northeast Rail Authority Compact, and permits the Secretary to use the advice and services of other departments and agencies of the Government as he may require.
Senator PASTORE. The third bill, S. 1234, was introduced by Senator Javits of New York on February 23, 1965. This bill would grant the
consent of Congress to the States of New York and Connecticut to enter into a compact to create a two-State authority, which other States may join, to operate the New Haven commuter service. The bill would also provide a Federal matching grant incentive to the States.
Senator Javits intends to propose an amendment to S. 1234 which would limit the duration of the Federal matching grant to a period of 2 years after the proposed authority becomes operational.
Without objection, a copy of S. 1234, an analysis of its provision, and the proposed amendment thereto, will be printed at this point in the record. (The bill follows:)
[S. 1234, 89th Cong., 1st sess. ]
A BILL To encourage the preservation and development of a modern and efficient pagsenger 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
Be is enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
TITLE I-SHORT TITLE AND STATEMENT OF FINDINGS AND
DECLARATION OF POLICY
SHORT TITLE SEC. 101. This Act may be cited as the “New York-Connecticut Rail Authority Act of 1965".
STATEMENT OF FINDINGS AND DECLARATION OF POLICY SEC. 102. The Congress finds that it is necessary to the national defense and to the general welfare of the Nation as well as that of the area involved that passenger and commuter-rail transportation be preserved and properly maintained within the northeastern seaboard area. The Congress therefore declares that it is the 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 to own, or lease, and operate such a system.
TITLE II–NEW YORK-CONNECTICUT RAIL AUTHORITY COMPACT
CONSENT AND APPROVAL OF COMPACT SEC. 201. The consent and approval of Congress is hereby given to the States of New York and Connecticut to negotiate and enter into the New York-Connecticut rail authority compact for the purpose of creating a New York-Connecticut Rail Authority to own, or lease, and operate a passenger or commuter rail transportation system within such States. Such compact shall be as follows:
“NEW YORK-CONNECTICUT RAIL AUTHORITY COMPACT “The states of New York and Connecticut hereinafter collectively referred to as signatories, any one of them being referred to as a signatory, do hereby covenant and agree as follows:
"ARTICLE I "There is hereby created the New York-Connecticut Rail District, hereinafter referred to as 'District', which shall embrace the states of New York and Connecticut.
"ARTICLE II "The signatories hereby create the New York-Connecticut 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 the Congress. The Authority shall have the power to own, or lease, and operate a passenger rail transportation system within the District.
“ARTICLE III "1. The Authority shall consist of four Commissioners, two each to be appointed by the Governors of New York and Connecticut. 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 New York-Connecticut 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 commissioners 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 established by the Authority.
"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 or more, as may be provided in this compact, 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 deems advisable. Three Commissioners shall constitute a quorum of the Authority.
“ARTICLE V "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 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 facilities acquired or constructed by it or enter into agreements with railroad corporations, government agencies and public bodies or other persons for the operation of its facilities, the use of its operating rights, its equipment 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 instruments 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.
(13) Apply for and be eligible for federal, state or other governmental assistance.
"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 particular 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 combination fares.
“1. 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 any amount by which costs of operations as conducted by the Authority are in excess of the revenues from such operations. To determine the proper allocation of any such amounts the Authority shall establish a formula for determining the portions of the signatories' share of any such amounts to be borne by each of the signatories. Such formula shall be consistent with the Constitution and laws of the individual signatories, and shall be established only by unanimous consent of the commissioners. Upon allocating in accordance with such formula the portions of any such amounts to be borne by the signatories, the Authority shall immediately notify the chief executive of each signatory as to the share which it deems to be payable by such signatory under such formula. Such notice shall be submitted by the chief executive to the legislature of the signatory for its consideration and appropriate action. For the purpose of this article the 'signatories' share' of any such amount shall be the portion of any such amount in excess of the Federal share of such amount as established pursuant to section 307 of the New YorkConnecticut Rail Authority Act of 1965.
"2. At such time as the revenues per annum of the Authority may exceed the costs (including payment of indebtedness) per annum of the Authority, the Commissioners at their discretion may make payments to the Federal Government and the signatories in reimbursement of 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 various signatories and the Federal Government.
"3. 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 a 'bonds', in an amount not exceeding $500,000,000 outstanding at any time to assist in financing its operations pursuant to the powers granted by 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 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 sig. natory, 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.
"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.
"ARTICLE X "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 ; (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.