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“ARTICLE XII "This compact may be amended from time to time with the consent of all of the signatories and the Congress of the United States.
“ARTICLE XIII "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
DEFINITIONS Sec. 301. For the purposes of this title (1) The term “Secretary” means the Secretary of Commerce. (2) The term "Commission" means the Interstate Commerce Commission.
(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.
GUARANTEE AUTHORITY 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 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 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 admin. istrative 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 within 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 termina
tion of the second complete calendar year of operations of the authority.” Senator PASTORE. The fourth bill, S. 1289, was introduced by Senator Nodd on February 25, 1965, and cosponsored by Senator Pell. It would establish a 5-year program of Federal financial assistance to help railroads meet their commuter and passenger problems and would authorize aid to the extent of $75 million with a limit of $20 million for any one railroad during the first year of the program. This aid would be administered by the Interstate Commerce Commission.
Without objection, a copy of the bill, S. 1289, and an analysis of its provisions will be printed at this point in the record.
(The bill follows:)
[S. 1289, 89th Cong., 1st sess.) A BILL To amend the Interstate Commerce Act, as amended, to authorize the Interstate and improving essential passenger train services and facilities, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the “Railroad Passenger Train Assistance Act of 1965".
SEC. 2. The Interstate Commerce Act, as amended, is amended by inserting immediately after part V thereof the following new part:
“SEC. 601. It is the purpose of this part to provide financial aid to common carriers of passengers by railroad subject to this Act to assist them in preserving and improving essential passenger train services and facilities until such time as longer range plans may be formulated to effect a more lasting solution to passenger train service problems, and to encourage State and local governments and their public instrumentalities to extend tax relief and financial and other assistance toward the same end, to encourage the employment of labor, and to foster the preservation and development of a national transportation system adequate to meet the needs of the commerce of the United States, of the postal service, and of the national defense.
"DEFINITIONS “SEC. 602. For the purposes of this part“(a) The term 'Commission' means the Interstate Commerce Commission.
“(b) The term 'expense' means expenditures for labor, materials, services, and other costs incurred in maintaining, repairing, or renewing road property used in transportation service which are chargeable to the maintenance of way and structure operating expense accounts in accordance with the uniform sys. tem of accounts for railroad companies prescribed by the Commission.
"(c) The term 'expense', in referring to expenses directly assignable as solely related to railroad passenger service or to that portion of common expenses assignable to railroad passenger service, means expenses assignable in accordance with rules governing the separation of operating expenses, railway taxes, equipment rents, and joint facility rents, between freight service and passenger service prescribed by the Commission.
“(a) The term 'financial aid', in referring to financial aid granted by any State, municipality, or other political subdivision, or any public instrumentality thereof, means financial aid in the form of direct grants, tax relief, and expenses incurred in the maintenance of the applicant's way and structures which, if incurred by the applicant, would be an expense assignable to railroad passenger service.
"APPLICATION FOR AID ; CONDITIONS PRECEDENT TO GRANTING “Sec. 603. In order to carry out the purpose declared in section 601, the Commission is authorized and directed to consider the application of any railroad subject to this Act for financial aid in the operation of a passenger train or trains required by the present or future public convenience and necessity. No such application shall be approved by the Commission unless it determines that (1) the continuance of passenger train operations specified in the application is required by the present or future public convenience and necessity; and (2) the granting of the aid applied for is necessary to carry out effectively the purpose of this part. The Commission shall have power to approve such applications subject to such terms and conditions as in its judgment may be required