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I have attached pertinent provisions of Chapter 590, Acts of the
General Assembly of Virginia, April 4, 1970, and of House Bill
No. 265 approved by the Maryland Assembly, which authorize
the Washington Metropolitan Area Transit Authority to acquire
the private Transit Companies that operate within the authority's
jurisdiction. As you may note, the enabling sections Article XII,
section 56 (e) of the Virginia Act contains identical language as
that in the Maryland House Bill section 317-56.

Legislation to be approved by the Congress for benefit to the
District should also be of similar language. Further, the legislation
of the District should be consistent with that contained in Article XVI,
section 82 (abc), and section 317-82 of the Maryland bill in regard
to the power of the Authority to acquire such property by condemnation.

At your leave, I will transmit copies of these two bills to the office
of Budget and Management and prompt that office to develop a suitable
draft for submission to the Congress.

ATTACHMENT

CC:

David Schwartz

63-280 71 - 2

HOUSE BILL NO. 265

4 payable annually or semiannually; provided that such interest rate 5 limitation shall not be applied to any bonds which are payable solely 6 from contributions or other payments to be made by the federal 7 government].

1 317-39.

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2 The Board may fix terms and conditions for the sale or other 8 disposition of any authorized issue of bonds. The Board may sell 4 bonds at less than their par or face value but no issue of bonds may 5 be sold at an aggregate price below the par or face value thereof if 6 such sale would result in a net interest cost to the Authority calculated upon the entire issue so sold [of more than six percent per 8 annum in excess of the applicable rate determined by the Board, 9 payable semiannually, computed with relation to the absolute matur10 ity of the bonds according to standard tables of bond values; pro11 vided that such limitation on the net interest cost shall not be applied 12 to any bonds which are payable solely from contributions or other 13 payments to be made by the federal government.] deducting the 14 amount of any premium to be paid on the redemption of any bonds 15 prior to maturity. All bonds issued and sold pursuant to this title 16 may be sold in such manner, either at public or private sale, as the 17 Board shall determine.

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5

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317-51.

The Authority shall not perform transit service, nor any of the 3 functions, such as maintenance of equipment and right of way nor4 mally associated with the providing of such service, with any transit facilities owned or controlled by it but shall provide for the perform6 ance of transit service with such facilities by contract or contracts with private transit companies, private railroads, or other persons.] Any facilities and properties owned or controlled by the Authority other than those utilized in performing transit service,] may be 10 operated by the Authority directly or by others pursuant to contract 11 or lease as the board may determine. [All operations of such facili12 ties and properties by the Authority and by its contractor and 13 lessees shall be within the zone.]

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1 317-56.

2 (e) The Authority may acquire the capital stock or the transit $ facilities of any private transit company and may perform transit 4 service, including service by bus or similar motor vehicle, with transit 5 facilities so acquired or with transit facilities acquired pursuant to 6 Article VII Section 20. Upon acquisition of the capital stock or the 7 transit facilities of any private transit company, the Authority shall 8 undertake the acquisition, as soon as possible, of the capital stock or 9 the transit facilities of each of the other private transit companies 10 within the zone requesting such acquisition. Lack of such request, 11 however, shall not be construed to preclude the Authority from 12 acquiring the capital stock or the transit facilities of any such 13 company pursuant to Section 82 of Article XVI.

1 317-66.

2

[It shall be a condition of the operation of the transit facilities 3 owned or controlled by the Authority that the provisions of Section

HOUSE BILL NO. 265

28 through their representatives. No employee of any acquired trans29 portation system who is transferred to a position with the Authority 30 shall by reason of such transfer be placed in any worse position 81 with respect to workmen's compensation, pension, seniority, wages, 82 sick leave, vacation, health and welfare insurance or any other 33 benefits, than he enjoyed as an employee of such acquired transporta34 tion system.

1 317-79.

2 [All laws of the signatories with respect to free transportation 3 and school fares shall be applicable to transit service rendered by 4 facilities owned or controlled by the Authority. The District of 5 Columbia, the Northern Virginia Transportation District, the Washington Suburban Transit District and the component governments 7 thereof may enter into contracts or agreements with the Authority 8 to make equitable payments for fares lower than those established 9 by the Authority pursuant to the provisions of Article XIII hereof 10 for any specified class or category of riders.

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1 317-82.

2 (a) The Authority shall have the power to acquire by condemna3 tion, whenever in its opinion it is necessary or advantageous to the 4 Authority to do so, any real or personal property, or any interest 5 therein, necessary or useful for the transit system authorized herein, except property owned by the United States, by a signatory, or any 7 political subdivision thereof, or by a private transit company. 8 whenever such property cannot be acquired by negotiated purchase 9 at a price satisfactory to the Authority.

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1 SEC. 2. And be it further enacted, That it is the sense of the 2 General Assembly in enacting this legislation that the "public opera3 tion" contemplated herein shall consist of an integrated bus and 4 subway system if and when the subway system is operated.

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SEC. 3. And be it further enacted, That this Act shall be construed 2 as the separate enactment of each amendment to the applicable 3 sections of Article 41 of the Annotated Code and to this end, the 4 provisions of such sections are separable.

SEC. 4. And be it further enacted, That this Act shall become 2 effective on July 1, 1971 and the Compact shall be deemed to be 3 amended as soon thereafter as substantially similar concurring legis4 lation shall be enacted by or on behalf of the District en OF Columbia 5 and Virginia and consent thereto shall have been granted by the 6 Congress of the United States.

1 SEC. 5. And be it further enacted, That the provisions of this Act 2 shall be severable and if any phrase, clause, sentence or provision 3 of this Act is declared to be unconstitutional or the applicability 4 thereof to any signatory party, Political Subdivision or agency 5 thereof is held invalid, the constitutionality of the remainder of this 6 Act and the applicability thereof to any other signatory party, 7 Political Subdivision or agency thereof or circumstance shall 8 not be affected thereby. It is the legislative intent that the provisions 9 of this Act be reasonably and liberally construed.

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ment as the Board may prescribe; provided, however, that the compensation shall bear a reasonable relationship to the benefits to the Authority and to the estimated costs the Authority would incur in directly performing the functions and dutics delegated under the operating contract; and provided, further, that no such contract shall create any right in the Contractor (1) to make or change any rate or fare or alter or change the service specified in the contract to be provided or (2) to seek judicial relief by any form of original action, review or other proceedings from any rate or fare or service prescribed by the Board. Any assertion, or attempted assertion, by the Contractor of the right to make or change any rate or fare or service prescribed by the Board shall constitute cause for termination of the operating contract. The operating contract may provide incentives for efficient and economical management.

Selection of Contractor

54. The Board shall enter into an operating contract only after formal advertisement and negotiations with all interested and qualified parties, including private transit companies rendering transit service within the Zone; provided, however, that, if the Authority acquires transit facilities from any agency of the federal or District of Columbia governments, in accordance with the provisions of Article VII, Section 20 of this Title, the Authority shall assume the obligations of any operating contract which the transferor agency may have entered into.

Article XII

Coordination of Private and Public Facilities

Declaration of Policy

55. It is hereby declared that the interest of the public in efficient and economical transit service and in the financial well-being of the Authority and of the private transit companies requires that the public and private segments of the regional transit system be operated, to the fullest extent possible, as a coordinated system without unnecessary duplicating service.

'Implementation of Policy

56. In order to carry out the legislative policy set forth in Section 55 of this Article XII

(a) The Authority—

(1) except as herein provided, shall not, directly or through a Contractor, perform transit service by bus or similar motor vehicles;

(2) shall, in cooperation with the private carriers and WMATC, coordinate to the fullest extent practicable, the schedules for service performed by its facilities with the schedules for service performed by private carriers; and

(3) shall enter into agreements with the private carriers to establish and maintain, subject to approval by WMATC, through routes and joint fares and provide for the division thereof, or, in the absence of such agreements, establish and maintain through routes and joint fares in accordance with orders issued by WMATC directed to the private carriers when the terms and conditions for such through service and joint fares are acceptable to it.

(b) The WMATC, upon application, complaint, or upon its own motion, shall

(1) direct private carriers to coordinate their schedules for service with the schedules for service performed by facilities owned or controlled by the Authority;

(2) direct private carriers to improve or extend any existing services or provide additional service over additional routes;

(3) authorize a private carrier, pursuant to agreement between said carrier and the Authority, to establish and maintain through routes and joint fares for transportation to be rendered with facilities owned or con

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trolled by the Authority if, after hearing held upon reasonable notice, WMATC finds that such through routes and joint fares are required by the public interest; and

(4) in the absence of such an agreement with the Authority, direct a private carrier to establish and maintain through routes and joint fares with the Authority, if, after hearing held upon reasonable notice, WMATC finds that such through service and joint fares are required by the public interest; provided, however, that no such order, rule or regulation of WMATC shall be construed to require the Authority to establish and maintain any through route and joint fare.

(c) WMATC shall not authorize or require a private carrier to render any service, including the establishment or continuation of a joint fare for a through route service with the Authority which is based on a division thereof between the Authority and private carrier which does not provide a reasonable return to the private carrier, unless the carrier is currently earning a reasonable return on its operation as a whole in performing transportation subject to the jurisdiction of WMATC. In determining the issue of reasonable return, WMATC shall take into account any income attributable to the carrier, or to any corporation, firm or association owned in whole or in part by the carrier, from the Authority whether by way of payment for services or otherwise.

(d) If the WMATC is unable, through the exercise of its regulatory powers over the private carriers granted in paragraph (b) hereof or otherwise, to bring about the requisite coordination of operations and service between the private carriers and the Authority, the Authority may in the situations specified in paragraph (b) hereof, cause such transit service to be rendered by its Contractor by bus or other motor vehicle, as it shall deem necessary to effectuate the policy set forth in Section 55 hereof. In any such situation, the Authority, in order to encourage private carriers to render bus service to the fullest extent practicable, may, pursuant to agreement, make reasonable subsidy payments to any private carrier. Rights of Private Carriers Unaffected

(e) The Authority may acquire the capital stock or the transit facilities of any private transit company and may perform transit service, including service by bus or similar motor vehicle, with transit facilities so acquired, or with transit facilties acquired pursuant to Article VII, § 20. Upon acquisition of the capital stock or the transit facilities of any private transit company, the Authority shall undertake the acquisition, as soon as possible, of the capital stock or the transit facilities of each of the other private transit companies within the zone requesting such acquisition. Lack of such request, however, shall not be construed to preclude the Authority from acquiring the capital stock or the transit facilities of any such company pursuant to Section 82 of Article XVI.

57. Nothing in this Title shall restrict or limit such rights and remedies, if any, that any private carrier may have against the Authority arising out of acts done or actions taken by the Authority hereunder. In the event any court of competent jurisdiction shall determine that the Authority has unlawfully infringed any rights of any private carrier or otherwise caused or permitted any private carrier to suffer legally cognizable injury, damages or harm and shall award a judgment therefor, such judgment shall constitute a lien against any and all of the assets and properties of the Authority.

Financial Assistance to Private Carriers

58. (a) The Board may accept grants from and enter into loan agreements with the Housing and Home Finance Administrator, pursuant to the provisions of the Urban Mass Transportation Act of 1964 (78 Stat. 302), or with any successor agency or under any law of similar purport, for the purpose of rendering financial assistance to private carriers.

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