45 U.S.C. § 711 — Formation and structure

Page 158 TITLE 45—RAILROADS § 711 Par. (16). Pub. L. 94–555 substituted ‘‘, in his absence, the Deputy Secretary of Transportation’’ for ‘‘the duly authorized representative of either of them’’ after ‘‘ac- cordance with law, or’’. Pub. L. 94–210, §§ 601(f), (g), 610(a)(1), redesignated former par. (14) as (16) and substituted provisions relat- ing to the person at the time performing the duties of the Office in accordance with the law, or the duly au- thorized representative of such person or the Secretary, for provisions relating to the delegate of the Secretary, unless the context indicated otherwise. Par. (17). Pub. L. 94–210, §§ 601(g), 610(a)(2), redesig- nated former par. (15) as (17) and substituted a semi- colon for a period. Pars. (18), (19). Pub. L. 94–210, § 610(a)(3), added pars. (18) and (19). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1995 AMENDMENT Amendment by Pub. L. 104–88 effective Jan. 1, 1996, see section 2 of Pub. L. 104–88, set out as an Effective Date note under section 1301 of Title 49, Transpor- tation. 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 Pub. L. 94–555, title III, § 303, Oct. 19, 1976, 90 Stat. 2631, provided that: ‘‘The provisions of this Act and the amendments made by this Act [amending this section, sections 543, 545, 546, 563, 601, 602, 641, 711, 716, 720, 721, 743, 744, 771, 774, 775, 779, 823, 824, 825, 826, 829, 831, and 854 of this title, section 960 of Title 20, Education, and sections 1a, 5, 5c, 13, 15, 17, 22, 26c, and 1653 of former Title 49, Transportation, and enacting provisions set out as notes under sections 501, 641, 701, and 714 of this title, section 80a–3 of Title 15, Commerce and Trade, and sections 1a and 1654 of former Title 49] shall take effect on October 1, 1976.’’ 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. SUBCHAPTER II—UNITED STATES RAILWAY ASSOCIATION § 711. Formation and structure (a) Establishment There is established, in accordance with the provisions of this section, an incorporated non- profit association to be known as the United States Railway Association. (b) Administration The Association shall be directed by a Board of Directors. The individuals designated, pursu- ant to subsection (d)(2) of this section, as the Government members of such Board shall be deemed the incorporators of the Association and shall take whatever steps are necessary to es- tablish the Association, including filing of arti- cles of incorporation, and serving as an acting Board of Directors for a period of not more than 45 days after the date of incorporation of the As- sociation. (c) Status The Association shall be a government cor- poration of the District of Columbia subject, to the extent not inconsistent with this sub- chapter, to the District of Columbia Nonprofit Corporation Act. Except as otherwise provided, employees of the Association shall not be deemed employees of the Federal Government. The Association shall have succession until dis- solved by Act of Congress, shall maintain its principal office in the District of Columbia, and shall be deemed to be a resident of the District of Columbia with respect to venue in any legal proceeding. (d) Board of Directors (1) The Board of Directors of the Association shall consist of five individuals, as follows: (A) The Chairman, who shall be the indi- vidual serving as Chairman on August 13, 1981, until the expiration of his term of office or his resignation, or his replacement, who shall be selected by the outgoing Chairman and the other members of the Board. (B) The Secretary of Transportation. (C) The Comptroller General of the United States. (D) The Chairman of the Commission. (E) The Chairman of the Board of Directors of the Corporation. (2) The Chairman may not have any employ- ment or other direct financial relationship with any freight railroad. The Chairman shall receive $300 per diem when engaged in the actual per- formance of his duties plus reimbursement for travel, subsistence, and other necessary ex- penses incurred in the performance of such du- ties. (e) Term of office The term of office of the Chairman of the Board of Directors of the Association shall ex- pire on December 31, 1987. The Chairman may be reappointed and the term of the Chairman shall be 3 years. (f) Quorum Three members of the Board of Directors, or their representatives, shall constitute a quorum Page 159 TITLE 45—RAILROADS § 711 1 See Codification note below. for the transaction of any function of the Asso- ciation. (g) Assumption of Finance Committee functions The Board of Directors shall, on August 13, 1981, assume the functions previously performed by the Finance Committee. (h) Representation at meetings The members of the Board of Directors may send representatives to meetings of such Board, and such representatives may exercise full pow- ers of the members. (i) Miscellaneous 1 (1) The Association shall have a seal which shall be judicially recognized. (2) The Administrator of General Services shall furnish the Association with such offices, equipment, supplies, and services as he is au- thorized to furnish to any other agency or in- strumentality of the United States. (3) The Secretary is authorized to transfer to the Association or the Corporation rights in in- tellectual property which are directly related to the conduct of the functions of the Association or the Corporation, to the extent that the Fed- eral Government has such rights and to the ex- tent that transfer is necessary to carry out the purposes of this chapter. (4) Any reference in this chapter to the Chair- man of the Commission is to the Chairman of the Commission or the person who is at the time performing the duties of the Chairman of the Commission in accordance with law. (j) Use of names 1 No person, except the Association, shall here- after use the words ‘‘United States Railway As- sociation’’ as a name for any business purpose. Violations of this provision may be enjoined by any court of general jurisdiction in an action commenced by the Association. In any such ac- tion, the Association may recover any actual damages flowing from such violation, and, in ad- dition, shall be entitled to punitive damages (re- gardless of the existence or nonexistence of ac- tual damage) in an amount not to exceed $100 for each day during which such violation was com- mitted. The district courts of the United States shall have jurisdiction over actions brought under this subsection, without regard to the amount in controversy or the citizenship of the parties. (Pub. L. 93–236, title II, § 201, Jan. 2, 1974, 87 Stat. 988; Pub. L. 94–210, title VI, §§ 603(a), (b), 607(a), 612(j)(2), Feb. 5, 1976, 90 Stat. 88, 96, 109; Pub. L. 94–555, title II, § 211(b)–(e), Oct. 19, 1976, 90 Stat. 2624; Pub. L. 95–611, § 2, Nov. 8, 1978, 92 Stat. 3089; Pub. L. 96–448, title V, § 508(c), Oct. 14, 1980, 94 Stat. 1957; Pub. L. 97–35, title XI, § 1147, Aug. 13, 1981, 95 Stat. 673; Pub. L. 98–181, title II, § 2003(c)(1), Nov. 30, 1983, 97 Stat. 1297; Pub. L. 99–190, § 101(e) [title III, § 332], Dec. 19, 1985, 99 Stat. 1267, 1290.) Editorial Notes REFERENCES IN TEXT The District of Columbia Nonprofit Corporation Act, referred to in subsec. (c), is Pub. L. 87–569, Aug. 6, 1962, 76 Stat. 265, which is not classified to the Code. CODIFICATION Section 1147 of Pub. L. 97–35 directed that subsecs. (d) to (i) be struck out and replaced by new subsecs. (d) to (h), and that subsecs. (j) and (k) be redesignated (g) and (h), respectively. Because a literal execution of the amendment would result in two subsections designated (g) and two subsections designated (h), and to reflect the probable intent of Congress, subsecs. (j) and (k) have been editorially redesignated (i) and (j), respec- tively. AMENDMENTS 1985—Subsec. (d)(2). Pub. L. 99–190, § 101(e) [title III, § 332(1)], inserted ‘‘freight’’ before ‘‘railroad’’. Subsec. (e). Pub. L. 99–190, § 101(e) [title III, § 332(2)], substituted ‘‘1987’’ for ‘‘1985’’. 1983—Subsec. (e). Pub. L. 98–181 substituted ‘‘1985’’ for ‘‘1983’’. 1981—Subsec. (d). Pub. L. 97–35 substituted provisions respecting a five-member board for provisions respect- ing an eleven-member board. Subsec. (e). Pub. L. 97–35 substituted provisions re- specting term of office and reappointment of Chairman for provisions respecting term of office of Chairman and nongovernmental members, reappointment of members, and vacancies. Subsec. (f). Pub. L. 97–35 substituted provisions re- specting three-member quorum requirement for provi- sions respecting six-member quorum requirement. Subsec. (g). Pub. L. 97–35 substituted provisions relat- ing to assumption of Finance Committee functions for provisions relating to appointment of the President of the Association. See Codification note above. Subsec. (h). Pub. L. 97–35 substituted provisions relat- ing to representation at meetings for provisions relat- ing to the executive committee of the Board of Direc- tors. See Codification note above. Subsec. (i). Pub. L. 97–35 redesignated subsec. (j) as (i). Former subsec. (i), which related to membership, functions, etc., of the Finance Committee, was struck out. See Codification note above. Subsecs. (j), (k). Pub. L. 97–35 redesignated former subsecs. (j) relating to miscellaneous provisions, and (k) relating to use of names, as (i) and (j), respectively. See Codification note above. 1980—Subsec. (d)(2). Pub. L. 96–448, § 508(c)(1), inserted provision authorizing Secretary of Transportation to act directly or through the General Counsel of Depart- ment of Transportation, the Federal Railroad Adminis- trator, or the Deputy Administrator of the Federal Railroad Administration and substituted provision au- thorizing Secretary of the Treasury to act directly or through an officer of Department of the Treasury who has been appointed with the advice and consent of the Senate for provision authorizing Secretary of the Treasury to act directly or through Deputy Secretary of the Treasury. Subsec. (i). Pub. L. 96–448, § 508(c)(2), substituted ‘‘in the case of the Secretary, through the Deputy Sec- retary of Transportation, the General Counsel of the Department of Transportation, the Federal Railroad Administrator, or the Deputy Administrator of the Federal Railroad Administration, and, in the case of the Secretary of the Treasury, through an officer of the Department of the Treasury who has been appointed with the advice and consent of the Senate’’ for ‘‘through their respective Deputy Secretaries’’. Subsec. (j)(4). Pub. L. 96–448, § 508(c)(3), struck out provision that any reference in this chapter to Sec- retary of the Treasury is to Secretary of the Treasury or person who is at time performing duties of the Office of Secretary of the Treasury or, in his absence, Deputy Secretary of the Treasury. 1978—Subsec. (e). Pub. L. 95–611 inserted provision that members of Board shall continue to serve until their successors have been appointed and qualified. 1976—Subsec. (d)(2). Pub. L. 94–555, § 211(b), sub- stituted ‘‘the Deputy Secretary of Transportation, the Vice Chairman of the Commission, or the Deputy Sec- 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-