45 U.S.C. § 712 — Functions of Association

Page 160 TITLE 45—RAILROADS § 712 1 So in original. Probably should be ‘‘(6)’’. 2 Par. ‘‘(1)’’ designation supplied editorially. retary of the Treasury, as the case may be’’ for ‘‘their duly authorized representatives’’ after ‘‘at any time through’’. Pub. L. 94–210, § 603(b)(2), substituted ‘‘acting directly or at any time through’’ for ‘‘or’’. Subsec. (h). Pub. L. 94–555, § 211(c), struck out ‘‘The Secretary and the Chairman of the Commission may act in such capacity directly or at any time through their duly authorized representatives’’ after ‘‘members of the Board’’. Pub. L. 94–210, § 603(b)(1), inserted provision author- izing Secretary and Chairman to act directly or through their duly authorized representatives. Subsec. (i). Pub. L. 94–555, § 211(d), substituted ‘‘Dep- uty Secretaries’’ for ‘‘duly authorized representatives’’ after ‘‘through their respective’’. Pub. L. 94–210, § 603(a), added subsec. (i). Former sub- sec. (i) redesignated (j). Subsec. (j). Pub. L. 94–210, §§ 603(a), 607(a), redesig- nated former subsec. (i) as (j) and added par. (4). Former subsec. (j) redesignated (k). Subsec. (j)(4). Pub. L. 94–555, § 211(e), inserted ‘‘who is’’ after ‘‘Treasury or the person’’ and ‘‘Commission or the person’’, and substituted ‘‘in his absence, the Dep- uty Secretary of the Treasury’’ for ‘‘the duly author- ized representatives of either of them’’ after ‘‘Treasury in accordance with law’’. Subsec. (k). Pub. L. 94–210, §§ 603(a), 612(j)(2), redesig- nated former subsec. (j) as (k), substituted ‘‘this provi- sion’’ for ‘‘these provisions’’, and struck out ‘‘or the Corporation’’ after ‘‘Association’’ in two places and provisions relating to use of ‘‘Consolidated Rail Cor- poration’’ as a name for any business purpose. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective Aug. 13, 1981, see section 1169 of Pub. L. 97–35, set out as an Effective Date note under section 1101 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–448 effective Oct. 1, 1980, see section 710(a) of Pub. L. 96–448, set out as a note under section 1170 of Title 11, Bankruptcy. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–555 effective Oct. 1, 1976, see section 303 of Pub. L. 94–555, set out as a note under section 702 of this title. ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF FUNCTIONS Interstate Commerce Commission abolished and func- tions of Commission transferred, except as otherwise provided in Pub. L. 104–88, to Surface Transportation Board effective Jan. 1, 1996, by section 1302 of Title 49, Transportation, and section 101 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. References to Interstate Commerce Commission deemed to refer to Surface Transportation Board, a member or employee of the Board, or Secretary of Transportation, as appro- priate, see section 205 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF FUNCTIONS AND SECURITIES See section 1341 of this title. APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94–210, see section 619 of Pub. L. 94–210, set out as a note under section 791 of this title. § 712. Functions of Association (a) General The Association is authorized to— (1) monitor the financial performance of the Corporation; (2) review whether the goals and require- ments of this chapter are met; (3) purchase or otherwise acquire or receive, and hold and dispose of securities (whether debt or equity) of the Corporation under sec- tions 726 and 727 of this title and exercise all of the rights, privileges, and powers of a hold- er of any such securities; (4) purchase accounts receivable of the Cor- poration in accordance with section 727 of this title; (5) appoint and fix the compensation of such personnel as the Association considers nec- essary and appropriate; and (11) 1 determine the value of the Alaska Rail- road, as required by section 1204 of this title. (b) Investment of funds Uncommitted funds of the Association shall be kept in cash on hand or on deposit, or invested in obligations of the United States or guaran- teed thereby, or in obligations, participations, or other investments which are lawful invest- ments for fiduciary, trust, or public funds. (c) Exemption from taxation The Association, including its franchise, cap- ital reserves, surplus, security holdings, and in- come shall be exempt from all taxation now or hereafter imposed by the United States, any commonwealth, territory, dependency, or pos- session thereof, or by any State or political sub- division thereof, except that any real property of the Association shall be subject to taxation to the same extent according to its value as other real property is taxed. (d) Reports (1) 2 The Association shall transmit to the Congress and the President, not later than 90 days after the end of each fiscal year, a com- prehensive and detailed report on all activities of the Association during the preceding fiscal year. Each such report shall include (A) the As- sociation’s statement of specific and detailed objectives for the activities and programs con- ducted and assisted under this chapter; (B) statements of the Association’s conclusions as to the effectiveness of such activities and pro- grams in meeting the stated objectives and the purposes of this chapter, measured through the end of the preceding fiscal year; (C) rec- ommendations with respect to any legislation or administrative action which the Association deems necessary or desirable; (D) a statistical compilation of the obligations issued, certifi- cates of value issued, securities purchased, and loans made under this chapter; (E) a summary of outstanding problems confronting the Associa- tion, in order of priority; (F) all other informa- tion required to be submitted to the Congress pursuant to any other provision of this chapter; and (G) the Association’s projections and plans for its activities and programs during the next fiscal year. (2) For the fiscal year beginning October 1, 1977, and ending September 30, 1978, the Associa- Page 161 TITLE 45—RAILROADS § 712 3 So in original. Subsec. (g) redesignated (f) by Pub. L. 97–35. 4 So in original. Subsec. (h) redesignated (g) by Pub. L. 97–35. tion shall transmit to the Congress and the President, not later than 30 days after the end of each quarter of such fiscal year, a comprehen- sive and detailed report on all expenditures and use of funds during the preceding fiscal quarter, including an assessment of the status of projects for such preceding fiscal quarter and a projec- tion of activities proposed for the next fiscal quarter. (3) The Association shall transmit to the Con- gress, no later than 30 days after the end of each fiscal quarter, a report with respect to the pro- ceedings before the special court to determine the valuation of rail properties conveyed to the Corporation under section 743 of this title. Each such report shall include— (A) a detailed accounting of the Federal funds expended during such quarter in connec- tion with such proceedings, and the purposes for which such funds were expended; (B) an explanation of the status of such pro- ceedings, including the prospects for settle- ment or conclusion; and (C) an identification of which responsibil- ities in connection with such proceedings are being carried out directly by the Association, and which are being carried out by contract with private organizations. (e) Budget The receipts and disbursements of the Associa- tion (other than administrative expenses re- ferred to in subsection (g) 3 of this section and receipts and disbursements under section 726 of this title and section 746 of this title) in the dis- charge of its functions shall not be included in the totals of the budget of the United States Government, and shall be exempt from any an- nual expenditure and net lending (budget out- lays) limitations imposed on a budget of the United States Government. The Chairman of the Association shall transmit annually to the Con- gress a budget for program activities and for ad- ministrative expenses of the Association. The Chairman shall report annually to the Congress the amount of net lending of the Association, which would be included in the totals of the budgets of the United States Government, if the Association’s activities were not excluded from those totals as a result of this section. (f) Accountability The Chairman of the Association shall trans- mit annually to the Office of Management and Budget a budget for administrative expenses of the Association. Whenever the Association sub- mits any budget estimate or request to the Of- fice of Management and Budget, it shall concur- rently transmit a copy of the estimate or re- quest to the Congress. Within budgetary con- straints of the Congress, the maximum feasible and prudent budgetary flexibility shall be pro- vided to the Association to permit effective op- erations. (g) Transfer of litigation No later than March 1, 1980, the Association and the Attorney General of the United States shall develop and submit to the Congress a feasi- bility study for the transfer, to the appropriate department or agency of the Federal Govern- ment, of all responsibility for representing the United States in the proceedings before the spe- cial court to determine the valuation of rail properties conveyed to the Corporation under section 743 of this title. (h) Transfer of other functions No later than March 1, 1980, the Association and the Secretary of Transportation shall de- velop and submit to the Congress a feasibility study for the transfer of all functions of the As- sociation, other than those referred to in sub- section (h) 4 of this section, to the appropriate department or agency of the Federal Govern- ment, including the abolition of those functions which will no longer be necessary. (i) Monitoring of contractors The Board of Directors of the Association shall adopt procedures to insure (1) that con- tractors, including law firms, provide reports containing written verification of tasks as- signed, work performed, time worked, and costs incurred, including periodic status reports on work performed, (2) that such reports are au- dited by the Association, (3) that no funds are paid to contractors without written reports complying with the requirements of this sub- section, and (4) that the Association applies such procedures uniformly to all contractors. (Pub. L. 93–236, title II, § 202, Jan. 2, 1974, 87 Stat. 990; Pub. L. 94–5, § 2(a), Feb. 28, 1975, 89 Stat. 7; Pub. L. 94–210, title VI, §§ 601(c), 607(b), (c), Feb. 5, 1976, 90 Stat. 84, 96; Pub. L. 95–199, § 2, Nov. 23, 1977, 91 Stat. 1423; Pub. L. 96–73, title II, §§ 202, 203, Sept. 29, 1979, 93 Stat. 555; Pub. L. 97–35, title XI, § 1148(a), (b), Aug. 13, 1981, 95 Stat. 674; Pub. L. 97–468, title VI, § 605(e), Jan. 14, 1983, 96 Stat. 2564.) Editorial Notes CODIFICATION Subsec. (f), formerly (g), of this section as originally enacted consisted of pars. (1) and (2). Par. (1), which amended section 856 of former Title 31, Money and Fi- nance, was repealed by Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1068, the first section of which enacted Title 31. AMENDMENTS 1983—Subsec. (a)(11). Pub. L. 97–468 added par. (11). 1981—Subsec. (a). Pub. L. 97–35, § 1148(a)(1), sub- stituted provisions respecting financial performance monitoring, goal review, etc., for provisions respecting plan preparation and implementation, issuance of obli- gations, etc. Subsecs. (b) to (j). Pub. L. 97–35, § 1148(a), struck out subsec. (b) which related to additional duties of the As- sociation, and redesignated subsecs. (c) to (j) as (b) to (i), respectively. 1979—Subsec. (e)(3). Pub. L. 96–73, § 202, added par. (3). Subsecs. (h) to (j). Pub. L. 96–73, § 203, added subsecs. (h) to (j). 1977—Subsec. (e). Pub. L. 95–199 substituted ‘‘Re- ports’’ for ‘‘Annual report’’ in heading, redesignated cls. (1) through (7) as cls. (A) through (G) in first par., and added par. (2). 1976—Subsec. (a)(2). Pub. L. 94–210, § 601(c), inserted provisions relating to securities under section 726 of this title and certificates of value under section 746 of this title. Page 162 TITLE 45—RAILROADS § 713 Subsec. (e). Pub. L. 94–210, § 607(b), in cl. (4) inserted ‘‘, certificates of value issued, securities purchased,’’ after ‘‘obligations issued’’. Subsec. (f). Pub. L. 94–210, § 607(c), inserted provisions relating to receipts and disbursements under sections 726 and 746 of this title. 1975—Subsec. (b)(2). Pub. L. 94–5, § 2(a)(1), inserted ‘‘and express’’ after ‘‘rail’’ wherever appearing. Subsec. (b)(7). Pub. L. 94–5, § 2(a)(2), substituted ‘‘; and’’ for a period at end of par. (7). Subsec. (b)(8). Pub. L. 94–5, § 2(a)(3), added par. (8). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective Aug. 13, 1981, see section 1169 of Pub. L. 97–35, set out as an Effective Date note under section 1101 of this title. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–73 effective Oct. 1, 1979, see section 501(a) of Pub. L. 96–73. TERMINATION OF REPORTING REQUIREMENTS For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which reports required under subsecs. (d)(1), (3), (e), and (f) of this section are listed as the 3rd through 6th items on page 195), see sec- tion 3003 of Pub. L. 104–66, as amended, and section 1(a)(4) [div. A, § 1402(1)] of Pub. L. 106–554, set out as notes under section 1113 of Title 31, Money and Fi- nance. ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGA- NIZATION ACT OF 1973, AND TRANSFER OF FUNCTIONS Special court abolished and all jurisdiction and func- tions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title. ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF FUNCTIONS AND SECURITIES See section 1341 of this title. APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94–210, see section 619 of Pub. L. 94–210, set out as a note under section 791 of this title. § 713. Access to information The Corporation shall make available to the Association such information as the Association determines necessary for the Association to carry out its functions under this chapter. The Association shall request from other parties which are affected by this chapter information which will enable the Association to fulfill its functions under this chapter. (Pub. L. 93–236, title II, § 203, Jan. 2, 1974, 87 Stat. 992; Pub. L. 94–210, title VI, § 607(d), Feb. 5, 1976, 90 Stat. 96; Pub. L. 97–35, title XI, § 1149, Aug. 13, 1981, 95 Stat. 675.) Editorial Notes AMENDMENTS 1981—Pub. L. 97–35 substituted provisions relating to the Corporation making available to the Association all necessary information for provisions set out as sub- secs. (a) to (d) respecting planning and other informa- tion availability, and enforcement procedures. 1976—Subsec. (a). Pub. L. 94–210 struck out provisions prohibiting requests for information under this sub- section after effective date of the final system plan. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective Aug. 13, 1981, see section 1169 of Pub. L. 97–35, set out as an Effective Date note under section 1101 of this title. ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF FUNCTIONS AND SECURITIES See section 1341 of this title. APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94–210, see section 619 of Pub. L. 94–210, set out as a note under section 791 of this title. § 714. Omitted Editorial Notes CODIFICATION Section, Pub. L. 93–236, title II, § 204, Jan. 2, 1974, 87 Stat. 993, directed the Secretary, within 30 days after Jan. 2, 1974, to prepare a report, with recommendations, with respect to the geographic zones within the region in which said service should be provided, to submit the report to the Office, the Association, the Governor, and the public utilities commission of each State studied in the report and to local governments, consumer organi- zations, environmental groups, the public, and to Con- gress, and to publish the report in the Federal Register. Statutory Notes and Related Subsidiaries DELAWARE-MARYLAND-VIRGINIA PENINSULA RAIL STUDY; REPORT TO CONGRESS Pub. L. 94–555, title III, § 302, Oct. 19, 1976, 90 Stat. 2631, directed Interstate Commerce Commission to sub- mit a report to Congress, within six months of Oct. 19, 1976, regarding problems of and need for rail transpor- tation services on Delaware-Maryland-Virginia penin- sula. § 715. Repealed. Pub. L. 95–473, § 4(b), Oct. 17, 1978, 92 Stat. 1466 Section, Pub. L. 93–236, title II, § 205, Jan. 2, 1974, 87 Stat. 993, Pub. L. 94–5, § 3, Feb. 28, 1975, 89 Stat. 7; Pub. L. 94–210, title III, § 309, Feb. 5, 1976, 90 Stat. 57, estab- lished Rail Services Planning Office. § 716. Final system plan (a) Goals The final system plan shall be formulated in such a way as to effectuate the following goals: (1) the creation, through a process of reorga- nization, of a financially self-sustaining rail and express service system in the region; (2) the establishment and maintenance of a rail service system adequate to meet the rail transportation needs and service requirements of the region; (3) the establishment of improved high-speed rail passenger service, consonant with the rec- ommendations of the Secretary in his report of September 1971, entitled ‘‘Recommenda- tions for Northeast Corridor Transportation’’; (4) the preservation, to the extent consistent with other goals, of existing patterns of serv- ice by railroads (including short-line and ter- minal railroads), and of existing railroad trackage in areas in which fossil fuel natural resources are located, and the utilization of