CHAPTER 2

ict to emend Chapter 627 of the Acts of Assembly of 1958, approved
March 29, 1958, as amended, relating to the Washington M etropolitan
Area pune Regulation Compact, by adding a section numbered 8,
provisions as an addition to, and to be a part of, the
Washington U Metropolitan Area Transit Regulation Compact set forth
ta § 2 of such chapter, so as to establish by compact with the State
of Maryland and the District of Columbia the Washington Metro-
poitan Area Transit Authority Compact which creates the Wash-
tugton Metropolitan Area Transit Zone and the Washington Metro-
Area Transit Authority to plan, develop, finance and cause to
be operated improved transit facilities in said Zone; to create a Board
of Directors to govern the Authority and to provide for the selection
of the members of the Board of Directors and their alternates; to
authorize the Authority to enter into agreements or other arrange-
ments with the Washington Suburban Transit District, the Northern
Virginia Transportation District or the component governments
thereof, the District of Columbia and the United States, or any
agency thereof, to provide transit facilities and service and to finance
the acquisition and operation of its transit facilities; to provide for
the administrative expenses of the Authority; to authorize the Au-
thority to issue revenue bonds, equipment trust certificates and other
evidences of debt; to authorize the Authority to enter into contracts
and leases for the operation of its facilities and properties and to
provide a labor policy for the protection of the employees of tts
contractors; to authorize the Authority to exercise exclusive control
over the rates charged and service performed by the transit facilities
owned or controlled by it; to provide for the coordination of the
operation of the publicly and privately owned or controlled transtt
facilities; to provide relocation assistance and payments; to exempt
bonds and other evidences of debt and the interest thereon and the
property, activities and income of the Authority from taxation by
the signatories and the political subdivisions thereof; to grant the
Authority the power of eminent domain; to exempt the Authority,
tts Contractor and the transit service rendered with the transit facil-
ties owned or controlled by the Authority from regulation by the
signatories; to provide jurisdiction for actions by or against the
Authority; to generally relate to the operation by "the Authority of
transit facilities and services in the zone; to provide for the execution
of the compact; to provide for the enlargement of the zone, withdrawal
of any signatory, duration and amendment of the compact; and to
provide that the effectiveness of the compact shall be dependent upon
the consent of the Congress of the United States.

—_ gin ae ae
Be it enacted by the General Assembly of Virginia:

1. That Chapter 627 of the Acts of Assembly of 1958, approved Marck
29, 1958, as amended, be further amended by adding a section numberec
8, containing provisions as an addition to, and to be a part of, the Wash-
ington Metropolitan Area Transit Regulation Compact set forth in § 2
of such chapter, as follows:

§ 3. Washington Metropolitan Area Transit Authority Compact

Whereas, Maryland, Virginia and the District of Columbia heretofore
have entered into the Washington Metropolitan Area Transit Regulation
Compact (Virginia—Ch. 627, 1958 Acts of Assembly ; Maryland—Ch. 618,
Acts of General Assembly 1959; District of Columbia—Resolution of the
Board of Commissioners adopted December 22, 1960), with the consent
of the Congress (J.R., September 15, 1960, P.L. 86-794, 74 Stat. 1031, as
amended by 76 Stat. 764), as a first step toward the improvement of
transit service in the metropolitan area of Washington, D. C.; _°:

Whereas, in said Compact each of the signatories pledged to each
of the other signatory parties faithful cooperation in the solution and
control of transit and traffic problems within said metropolitan area
and, in order to effect such purposes, agreed to enact any necessary leg-
islation to achieve the objectives of the Compact to the mutual benefit
of the citizens living within said metropolitan area and for the advance-
ment of the interests of the signatories;

Whereas, it has been established by a decade of studies that a regional
system of improved and expanded transit facilities, including grade-sepa-
rated rail facilities in congested areas, is essential in said metropolitan
area for the satisfactory movement of people and goods, the alleviation
of present and future traffic congestion, the economic welfare and vitality
of all parts of the area, the effectiveness of the departments and agencies
of the federal government located within the area, the orderly growth
and development of the District of Columbia and the Maryland and
Virginia portions of the area, the comfort and convenience of the residents
of and visitors to the area, and the preservation of the beauty and dignity
of the Nation’s Capital;

Whereas, the Congress has authorized Maryland, Virginia and the
District of Columbia to negotiate a Compact for the establishment of an
organization empowered to provide necessary transit facilities (P.L. 86-
669, 74 Stat. 537) and in said legislation declared the policy, inter alia,
that the development and administration of such transit facilities re-
quires (1) cooperation among the federal, State and local governments
of the area, (2) financial participation by the federal government in the
creation of major facilities that are beyond the financial capacity or bor-
rowing powers of the private carriers, the District of Columbia and the
local governments of the area, and (3) coordination of transit facilities
with other public facilities and with the use of land, public and private;

Whereas, private transit companies should be utilized to the extent
practicable in providing the regional transit facilities and services, con-
sistent with the requirements of the public interest that the publicly and
privately owned facilities be operated as a coordinated regional system
without unnecessary duplicating services ;

Whereas, adequate provision should be made for the protection of
transit labor in the development and operation of the regional system;
an

Whereas, it is hereby determined that an Authority to be created by
interstate compact between the District of Columbia, the State of Mary-
land and the Commonwealth of Virginia, is the most suitable form of
organization to achieve the stated objectives ;

Now, therefore, the District of Columbia, the State of Maryland and
the Commonwealth of Virginia, hereinafter referred to as signatories, do
hereby amend the Washington Metropolitan Area Transit Regulation
Compact by adding thereto Title III, as hereinafter set forth, and do
hereby covenant and agree substantially, as follows:

Title ITI

Article I

Definitions
Definitions

1. As used in this Title, the following words and terms shall have
the f ili meanings, unless the context clearly requires a different
meaning

( a) “Board” means the Board of Directors of the Washington
Metropolitan Area Transit Authority ;

(b) “Director” means a member of the Board of Directors of the
Washington Metropolitan Area Transit Authority ;

(c) “Private transit companies” and “private carriers” means cor-
porations, persons, firms or associations rendering transit service within
the Zone pursuant to a certificate of public convenience and necessity
issued by the Washington Metropolitan Area Transit Commission or by a
franchise granted by the United States or any signatory party to this

(d) “Signatory” means the State of Maryland, the Commonwealth
of Virginia and the District of Columbia;
(e) “State” includes District of Columbia;
(f) “Transit facilities’’ means all real and personal property located
im the Zone, necessary or useful in rendering transit service between
paints within the Zone, by means of rail, bus, water or air and any other
mode of travel, including without limitation, tracks, rights of way, bridges,
unnels, subways, rolling stock for rail, motor vehicle, marine and air
ransportation, stations, terminals and ports, areas for parking and all
quipment, fixtures, buildings and structures and services incidental to or
equired in connection with the performance of transit service;
(g) “Transit services” means the transportation of persons and
: and baggage by means of transit facilities between points
rithin the Zone and includes the transportation of newspapers, express
md mail between such points but does not include taxicab, sightseeing
w charter service ; and
_ (h) “WMATC” means Washington Metropolitan Area Transit Com-
nission.
Article II
Purpose and Functions

-~urpose

2. The purpose of this Title is to create a regional instrumentality,
$ a common agency of each signatory party, empowered, in the manner
ereinafter set forth, (1) to plan, develop, finance and cause to be operated
mproved transit facilities, in coordination with transportation and gen-
ral development planning for the Zone, as part of a balanced regional
ystem of transportation, utilizing to their best advantage the various
odes of transportation, (2) to coordinate the operation of the public
nd privately owned or controlled transit facilities, to the fullest extent
racticable, into a unified regional transit system without unnecessary
iplicating service, and (3) to serve such other regional purposes and to
rform such other regional functions as the signatories may authorize

appropriate legislation.
Washington Metropolitan Area Transit Zone

3. There is hereby created the Washington Metropolitan Area Trans-
it Zone which shall embrace the District of Columbia, the cities of Alex-
andria, Falls Church and Fairfax and the counties of Arlington and Fair-
fax and political subdivisions of the Commonwealth of Virginia located
within those counties, and the counties of Montgomery and Prince George’s
in the State of Maryland and political subdivisions of the State of Mary-
land located in said counties.

Washington Metropolitan Area Transit Authority

4. There is hereby created, as an instrumentality and agency of
each of the signatory parties hereto, the Washington Metropolitan Area
Transit Authority which shall be a body corporate and politic, and which
shall have the powers and duties granted herein and such additional
powers as may hereafter be conferred upon it pursuant to law.

Board Membership

5. (a) The Pauthority shall be governed by a Board of six Directors
consisting of two Directors for each signatory. For Virginia, the Di-
rectors shall be appointed by the Northern Virginia Transportation Com-
mission; for the District of Columbia, by the Commissioners of the Dis-
trict of Columbia; and for Maryland, by the Washington Suburban
Transit Commission. In each instance the Director shall be appointed
from among the members of the appointing body and shall serve for a
term coincident with his term on the body by which he was appointed.
A Director may be removed or suspended from office only as provided
by the law of the signatory from which he was appointed. The appoint-
ing authorities shall also appoint an alternate for each Director, who
may act only in the absence of the Director for whom he has been appointed
an alternate, and each alternate shall serve at the pleasure of the appointing
authority. In the event of a vacancy in the office of Director or alternate,
it shall be filled in the same manner as an original appointment.

(b) Before entering upon the duties of his office each Director and
alternate director shall take and subscribe to the following oath (or
affirmation) of office or any such other oath or affirmation, if any, as the
Constitution or laws of the signatory he represents shall provide:

a) eee , hereby solemnly swear (or affirm) that I will support
and defend the Constitution of the United States and the Constitution
and Laws of the state or political jurisdiction from which I was appointed
as a director (alternate director) of the Board of Washington Metro-
politan Area Transit Authority and will faithfully discharge the duties
of the office upon which I am about to enter.”

Compensation of Directors and Alternates

6. Members of the Board and alternates shall serve without compensa-
tion but may be reimbursed for necessary expenses incurred as an incident
to the performance of their duties.

Organization and Procedure

7. The Board shall provide for its own organization and procedure.
It shall organize annually by the election of a Chairman and Vice-Chair-
man from among its members. Meetings of the Board shall be held as
frequently as the Board deems that the proper performance of its duties
requires and the Board shall keep minutes of its meetings. The Board
shall adopt rules and regulations governing its meetings, minutes and
transactions.

Quorum and Actions by the Board

8. (a) Four Directors or alternates consisting of at least one Di-
rector or alternate appointed from each Signatory, shall constitute a
quorum and no action by the Board shall be effective unless a majority
of the Board, which majority shall include at least one Director or alter-
nate from each Signatory, concur therein; provided, however, that a plan
of financing may be adopted or a mass transit plan adopted, altered,
revised or amended by the unanimous vote of the Directors representing
any two Signatories.

(b) The actions of the Board shall be expressed by motion or resolu-
tion. Actions dealing solely with internal management of the Authority
shall become effective when directed by the Board, but no other action
shall become effective prior to the expiration of thirty days following its
adoption; provided, however, that the Board may provide for the accelera-
ton of any action upon a finding that such acceleration is required for the
pet and timely performance of its functions.

9, (a) The officers of the Authority, none of whom shall be mem-
hers of the Board, shall consist of a general manager, a secretary, a
treasurer, a comptroller and a general counsel and such other officers as
the Board may provide. Except for the office of general manager and
comptroller, the Board may consolidate any of such other offices in one
person. All such officers shall be appointed and may be removed by the
Board, shall serve at the pleasure of the Board and shall perform such
duties and functions as the Board shall specify. The Board shall fix and
determine the compensation to be paid to all officers and, except for the
general manager who shall be a full-time employee, all other officers may
be hired on a full-time or part-time basis and may be compensated on a
salary or fee basis, as the Board may determine. All employees and such
oficers as the Board may designate shall be appointed and removed by

general manager under such rules of procedure and standards as the
Board may determine.

(b) The general manager shall be the chief administrative officer
of the Authority and, subject to policy direction by the Board, shall be
responsible for all activities of the Authority.

(c) The treasurer shall be the custodian of the funds of the Au-
thority, shall keep an account of all receipts and disbursements and shall
make payments only upon warrants duly and regularly signed by the

Iman or Vice-Chairman of the Board, or other person authorized by
the Board to do so, and by the secretary or general manager; provided,
however, that the Board may provide that warrants not exceeding such
amounts or for such purposes as may from time to time be specified by
ot Tailed be signed by the general manager or by persons desig-

y num,

(a) An oath of office in the form set out in Section 5 (b) of this
Article shall be taken, subscribed and filed with the Board by all ap-
pointed officers,

e) Each Director, officer and employee specified by the Board

give such bond in such form and amount as the Board may require,
te premium for which shall be paid by the Authority.

ct of Interests

10. (a) No Director, officer or employee shall:

(1) be financially interested, either directly or indirectly, in any
totract, sale, purchase, lease or transfer of real or personal property
‘which the Board or the Authority is a party; _

(2) in connection with services performed within the scope of his
oficial duties, solicit or accept money or any other thing of value in

tion to the compensation or expenses paid to him by the Authority;

(3) offer money or any thing of value for or in consideration of
ng an appointment, promotion or privilege in his employment

wh at.
(b) Any Director, officer or employee who shall willfully violate
ny provision of this section shall, in the discretion of the Board, forfeit
iis office or employment.

(c) Any contract or agreement made in contravention of this sec-
ion may be declared void by the Board.

(d) Nothing in this section shall be construed to abrogate or limit
he applicability of any federal or state law which may be violated by
iny action prescribed by this section.

Article IV
Pledge of Cooperation

11. Each Signatory pledges to each other faithful cooperation in the
achievement of the purposes and objects of this Title.

Article V
General Powers
Enumeration
12. In addition to the powers and duties elsewhere described in this
Title, and except as limited in this Title, the Authority may:

(a) Sue and be sued;

(b) Adopt and use a corporate seal and alter the same at pleasure;

(c) Adopt, amend, and repeal rules and regulations respecting the
exercise of the powers conferred by this Title;

Construct, acquire, own, operate, maintain, control, sell and con-
vey real and personal property and any interest therein by contract, pur-
chase, condemnation, lease, license, mortgage or otherwise but all of said
property shall be located in the Zone and shall be necessary or useful
in rendering transit service or in activities incidental thereto ;

(e) Receive and accept such payments, appropriations, grants, gifts,
loans, advances and other funds, properties and services as may be trans-
ferred or made available to it by any signatory party, any political sub-
division or agency thereof, by the United States, or by any agency thereof,
or by any other public or private corporation or individual, and enter into
agreements to make reimbursement for all or any part thereof ;

(f) Enter into and perform contracts, leases and agreements with
any person, firm or corporation or with any political subdivision or
agency of any signatory party or with the federal government, or any
agency thereof, including, but not limited to, contracts or agreements
to furnish transit facilities and service;

(zg) Create and abolish offices, employments and positions (other
than those specifically provided for herein) as it deems necessary for the
purposes of the Authority, and fix and provide for the qualification, ap-
pointment, removal, term, tenure, compensation, pension and retirement
rights of its officers and employees without regard to the laws of any of
the signatories;

(h) Establish, in its discretion, a personnel system based on merit
and fitness and, subject to eligibility, participate in the pension and re-
tirement plans of any signatory, or political subdivision or agency thereof,
upon terms and conditions mutually acceptable;

(i) Contract for or employ any professional services;

(j) Control and regulate the use of facilities owned or controlled
by the Authority, the service to be rendered and the fares and charges
to be made therefor;

(k) Hold public hearings and conduct investigations relating to any
matter affecting transportation in the Zone with which the Authority is
concerned and, in connection therewith, subpoena witnesses, papers, rec~-
ords and documents; or delegate such authority to any officer. Each Di-
rector may administer oaths or affirmations in any proceeding or in-
vestigation ;
(1) Make or participate in studies of all phases and forms of
transportation, including transportation vehicle research and development
techniques and methods for determining traffic projections, demand mo-
tivations, and fiscal research and publicize and make available the results
of such studies and other information relating to transportation; and

(m) Exercise, subject to the limitations and restrictions herein im-
posed, all powers reasonably necessary or essential to the declared objects
and purposes of this Title.

Article VI

Planning

Mass Transit Plan

13, (a) The Board shall develop and adopt, and may from time
to time review and revise, a mass transit plan for the immediate and
long-range needs of the Zone. The mass transit plan shall include one or
more plans designating (1) the transit facilities to be provided by the
Authority, including the locations of terminals, stations, platforms, park-
Ing facilities and the character and nature thereof; (2) the design and
location of such facilities; (3) whether such facilities are to be con-
structed or acquired by lease, purchase or condemnation; (4) a time-
table for the provision of such facilities; (5) the anticipated capital costs;
(6) estimated operating expenses and revenues relating thereto; and (7)
the various other factors and considerations, which, in the opinion of the
Board, justify and require the projects therein proposed. Such plan shall
secy the type of equipment to be utilized, the areas to be served, the
routes and schedules of service expected to be provided and the probable
fares and charges therefor.
__(b) In preparing the mass transit plan, and in any review of re-
nsion thereof, the Board shall make full utilization of all data, studies,
reports and information available from the Nationa] Capital Transporta-
tion Agency and from any other agencies of the federal government, and

Co and the political subdivisions thereof.

E88

14, (a) The mass transit plan, and any revisions, alterations or
amendments thereof, shall be coordinated, through the procedures here-
inafter set forth, with
_ (1) other plans and programs affecting transportation in the Zone
M order to achieve a balanced system of transportation, utilizing each
node to its best advantage ;

(2) the general plan or plans for the development of the Zone; and

(3) the development plans of the various political subdivisions em-
braced within the Zone.

(b) It shall be the duty and responsibility of each member of the
Board to serve as liaison between the Board and the body which appointed
him to the Board. To provide a framework for regional participation in

¢ planning process, the Board shall create technical committees con-
cemed with planning and collection and analyses of data relative to deci-
slon-making in the transportation planning process and the Commissioners
of the District of Columbia, the component governments of the North-
em Virginia Transportation District and the Washington Suburban
Transit District shall appoint representatives to such technical commit-
tees and otherwise cooperate with the Board in the formulation of a mass
transit plan, or in revisions, alterations or amendments thereof.

(ce) The Board, in the preparation, revision, alteration or amend-
nent of amass transit plan, shall
_ (1) consider data with respect to current and prospective condi-
tions in the Zone, including, without limitation, land use, population,
economic factors affecting development plans, goals or objectives for the
demands to be generated by such development, travel patterns, existing
and proposed transportation and transit facilities, impact of transit plans
on the dislocation of families and businesses, preservation of the beauty
and dignity of the Nation’s Capital, factors affecting environmental amen-
ities and aesthetics and financial resources;

(2) cooperate with and participate in any continuous, comprehen-
sive transportation planning process cooperatively established by the high-
way agencies of the signatories and the local political subdivisions in the
Zone to meet the planning standards now or hereafter prescribed by the
Federal-Aid Highway Acts; and

(8) to the extent not inconsistent with or duplicative of the plan-
ning process specified in subparagraph (2) of this paragraph (c), co-
operate with the National Capital Planning Commission, the National
Capital Regional Planning Council, the Washington Metropolitan Council
of Governments, the Washington Metropolitan Area Transit Commission,
the highway agencies of the Signatories, the Maryland-National Capital
Park and Planning Commission, the Northern Virginia Regional Plan-
ning and Economic Development Commission, the Maryland State Plan-
ning Department and the Commission of Fine Arts. Such cooperation
shall include the creation, as necessary, of technical committees composed
of personnel, appointed by such agencies, concerned with planning and
collection and analysis of data relative to decision-making in the trans-
portation planning process.

Adoption of Mass Transit Plan

15. (a) Before a mass transit plan is adopted, altered, revised or
amended, the Board shall transmit such proposed plan, alteration, revi-
sion or amendment for comment to the following and to such other agencies
as the Board shall determine:

_ (1) the Commissioners of the District of Columbia, the Northern
Virginia Transportation Commission and the Washington Suburban
Transit Commission ;

__ (2) the governing bodies of the Counties and Cities embraced
within the Zone;

(3) the highway agencies of the Signatories;

(4) the Washington Metropolitan Area Transit Commission;

(5) the Washington Mertopolitan Council of Governments;

(6) the National Capital Planning Commission;

(7) the National Capital Regional Planning Council;

(8) the Maryland-National Capital Park and Planning Commission;

(9) the Northern Virginia Regional Planning and Economic De-
velopment Commission;

(10) the Maryland State Planning Department; and

(11) the private transit companies operating in the Zone and the
Labor Unions representing the employees of such companies and em-
ployees of contractors providing service under operating contracts.

Information with respect thereto shall be released to the public. A
copy of the proposed mass transit plan, amendment or revision, shall be
kept at the office of the Board and shall be available for public inspection.
After thirty days’ notice published once a week for two successive weeks
In one or more newspapers of general circulation within the Zone, a
public hearing shall be held with respect to the proposed plan, altera-
tion, revision or amendment. The thirty days’ notice shall begin to run
on the first day the notice appears in any such newspaper. The Board
shall consider the evidence submitted and statements and comments made
at such hearing and may make any changes in the proposed plan, amend-
ment or revision which it deems appropriate and such changes may be
made without further hearing.
Article VII
Financing

olicy

16. With due regard for the policy of Congress for financing a mass
transit plan for the Zone set forth in Section 204 (g) of the National
Capital Transportation Act of 1960 (74 Stat. 537), it is hereby declared
to be the policy of this Title that, as far as possible, the payment of all
costs shall be borne by the persons using or benefiting from the Au-
thority’s facilities and services and any remaining costs shall be equit-
ably shared among the federal, District of Columbia and participating
local governments in the Zone. The allocation among such governments
of such remaining costs shall be determined by agreement among them
and shall be provided in the manner hereinafter specified.
Plan of Financing

17. (a) The Authority, in conformance with said policy, shall pre-
pare and adopt a plan for financing the construction, acquisition and
operation of facilities specified in a mass transit plan adopted pursuant
to Article VI hereof, or in any alteration, revision or amendment thereof.
Such plan of financing shall specify the facilities to be constructed or
acquired, the cost thereof, the principal amount of revenue bonds, equip-
ment trust certificates and other evidences of debt proposed to be issued,
the principal terms and provisions of all loans and underlying agreements
and indentures, estimated operating expenses and revenues and the pro-
posed allocation among the federal, District of Columbia and participat-
ing local governments of the remaining costs and deficits, if any, and
such other information as the Commission may consider appropriate.

(b) Such plan of financing shall constitute a proposal to the inter-
ested governments for financial participation and shall not impose any
gation on any government and such obligations shall be created only
as provided in Section 18 of this Article VII.
Commitments for Financial Participation

_ 18 (8) Commitments on behalf of the portion of the Zone located
m Virginia shall be by contract or agreement by the Authority with the
orthern Virginia Transportation District, or its component governments,
as authorized in the Transportation District Act of 1964 (Ch. 631, 1964
Acs of Virginia Assembly), to contribute to the capital required for the
construction and/or acquisition of facilities specified in a mass transit
plan adopted as provided in Article VI, or any alteration, revision or
amendment thereof, and for meeting expenses and obligations in the oper-
ation of such facilities. No such contract or agreement, however, shall
be entered into by the Authority with the Northern Virginia Transporta-
hon District unless said District has entered into the contracts or agree-
ments with its member governments, as contemplated by Section 1 (b)
(4) of Article 4 of said Act, which contracts or agreements expressly
provide that such contracts or agreements shall inure to the benefit of the
Authority and shall be enforceable by the Authority in accordance with

provisions of Section 2, Article 5 of said Act, and such contracts or
agreements are acceptable to the Board. The General Assembly of Vir-
fitia hereby authorizes and designates the Authority as the agency to
plan for and provide transit facilities and services for the area of Virginia
fxcompassed within the Zone within the contemplation of Article 1, Sec-
ton 8 (c) of said Act.

(bt) Commitments on behalf of the portion of the Zone located in
jarand shall be by contract or agreement by the Authority with the
Nashington Suburban Transit District, pursuant to which the Author-
Ky undertakes to provide transit facilities and service in consideration
for the construction and/or acquisition of facilities specified in a mass
transit plan adopted as provided in Article VI, or in any alteration, re-
vision or amendment thereof, and for meeting expenses and obligations
incurred in the operation of such facilities.

(c) With respect to the District of Columbia and the federal gov-
ernment, the commitment or obligation to render financial assistance
shall be created by appropriation or in such other manner, or by such
other legislation, as the Congress shall determine. If prior to j
such commitment by or on behalf of the District of Columbia, legislation
is enacted by the Congress granting the governing body of the District of
Columbia plenary power to create obligations and levy taxes, the com-
mitment by the District of Columbia shall be by contract or agreement
between the governing body of the District of Columbia and the Author-
ity, pursuant to which the Authority undertakes, subject to the provisions
of Section 20 hereof, to provide transit facilities and service in considera-
tion for the undertaking by the District of Columbia to contribute to the
capital required for the construction and/or acquisition of facilities spec-
ified in a mass transit plan adopted as provided in Article VI, or in any
alteration, revision or amendment thereof, and for meeting expenses and
obligations incurred in the operation of such facilities.

Administrative Expenses

19. Prior to the time the Authority has receipts from appropriations
and contracts or agreements as provided in Section 18 of this Article VII,
the expenses of the Authority for administration and for preparation
of a mass transit and financing plan, including all engineering, financial,
legal and other services required in connection therewith, shall, to the
extent funds for such expenses are not provided through grants by the
federal government, be borne by the District of Columbia, by the Wash-
ington Suburban Transit District and the component governments of the
Northern Virginia Transportation District. Such expenses shall be al-
located among such governments on the basis of population as reflected
by the latest available population statistics of the Bureau of the Census;
provided, however, that upon the request of any Director the Board shall
make the allocation upon estimates of population acceptable to the Board.
The allocations shall be made by the Board and shall be included in the
annual current expense budget prepared by the Board.
Acquisition of Facilities from Federal or Other Agencies

20. (a) The Authority is authorized to acquire by purchase, lease
or grant or in any manner other than condemnation, from the federal
government, or any agency thereof, from the District of Columbia, Mary-
land or Virginia, or any political subdivision or agency thereof, any
transit and related facilities, including real and personal property and
all other assets, located within the Zone, whether in operation or under
construction. Such acquisition shall be made upon such terms and condi-
tions as may be agreed upon and subject to such authorization or ap-
proval by the Congress and the governing body of the District of Columbia,
as may be required; provided, however, that if such acquisition imposes
or may impose any further or additional obligation or liability upon the
Washington Suburban Transit District, the Northern Virginia Transport-
ation District, or any component government thereof, under any contract
with the Authority, the Authority shall not make such acquisition until
any such affected contract has been appropriately amended.

(b) For such purpose, the Authority is authorized to assume all
liabilities and contracts relating thereto, to assume responsibility as pri-
mary obligor, endorser or guarantor on any outstanding revenue bonds,
equipment trust certificates or other form of indebtedness authorized in
this Act issued by such predecessor agency or agencies and, in connection
therewith, to become a party to, and assume the obligations of, any in-
denture or loan agreement underlying or issued in connection with any
outstanding securities or debts.
Temporary Borrowing
_ 21. The Board may borrow, in anticipation of receipts, from any
signatory, the Washington Suburban Transit District, the Northern Vir-
ginia Transportation District, or any component government thereof, or
from any lending institution for any purposes of this Title, including
administrative expenses. Such loans shall be for a term not to exceed
two years and at a rate of interest not to exceed six per cent per annum.
The signatories and any such political subdivision or agency may, in its
discretion, make such loans from any available money.

unding .
_., 22. The Board shall not construct or acquire any of the transit facil-
Iies specified in a mass transit plan adopted pursuant to the provisions
of Article VI of this Title, or in any alteration, revision or amendment
thereof, nor make any commitments or incur any obligations with respect
thereto until funds are available therefor.

Article VIII

; Budget
Capital Budget

23. The Board shall annually adopt a capital budget, including all
capital projects it proposes to unde e or continue during the budget
period, containing a statement of the estimated cost of each project and the
method of financing thereof. |
Current Expense Budget

24. The Board shall annually adopt a current expense budget for
each fiscal year. Such budget shall include the Board’s estimated ex-
penditures for administration, operation, maintenance and repairs, debt
service requirements and payments to be made into any funds required
to be maintained. The total of such expenses shall be balanced by the
Board’s estimated revenues and receipts from all sources, excluding funds
Included in the capital budget or otherwise earmarked for other purposes.
Adoption and Distribution of Budgets

23. (a) Following the adoption by the Board of annual capital and
current expense budgets, the general manager shall transmit certified
copies of such budgets to the principal budget officer of the federal govern-
ment, the District of Columbia, the Washington Suburban Transit Dis-
trict and of the component governments of the Northern Virginia Trans-
portation Commission at such time and in such manner as may be required
under their respective budgetary procedures.

(b) Each budget shall indicate the amounts, if any, required from
the federal government, the Government of the District of Columbia, the
Washington Suburban Transit District and the component governments
of the Northern Virginia Transportation District, determined in accord-
ance with the commitments made pursuant to Article VII, Section 18
of this Title, to balance each of said budgets.

Payment
2%. Subject to such review and approval as may be required by their
or other applicable processes, the federal government, the Gov-
ernment of the District of Columbia, the Washington Suburban Transit
District and the component governments of the Northern Virginia Trans-
portation District shall include in their respective budgets next to be
adopted and appropriate or otherwise provide the amounts certified to
each of them as set forth in the budgets.
Article IX
Revenue Bonds
ing Power

27. The Authority may borrow money for any of the purposes of
‘this Title, may issue its negotiable bonds and other evidences of indebte
ness in respect thereto and may mortgage or pledge its properties, rev
nues and contracts as security therefor.
All such bonds and evidences of indebtedness shall be payable sole
out of the properties and revenues of the Authority. The bonds a)
other obligations of the Authority, except as may be otherwise provid
in the indenture under which they were issued, shall be direct and gener
obligations of the Authority and the full faith and credit of the Autha
ity are hereby pledged for the prompt payment of the debt service there
and for the fulfillment of al] other undertakings of the Authority assum
by it to or for the benefit of the holders thereof.
Funds and Expenses
28. The purposes of this Title shal] include, without limitation, :

costs of any project or facility or any part thereof, including intere
during a period of construction and for a period not to exceed two yea
thereafter and any incidental expenses (legal, engineering, fiscal, financi:
consultant and other expenses) connected with issuing and disposing
the bonds; all amounts required for the creation of an operating fun
construction fund, reserve fund, sinking fund, or other special fund; :
other expenses connected with administration, the planning, design, a
quisition, construction, completion, improvement or reconstruction of a1
facility or any part thereof; and reimbursement of advances by the Boa:
or by others for such purposes and for working capital.
Credit Excluded; Officers, State, Political Subdivisions and Agencies

29. The Board shall have no power to pledge the credit of any sign
tory party, political subdivision or agency thereof, or to impose al
obligation for payment of the bonds upon any signatory party, politic
subdivision or agency thereof, but may pledge the contracts of su
governments and agencies; provided, however, that the bonds may
underwritten in whole or in part as to principal and interest by t
United States, or by any political subdivision or agency of any signator
provided, further, that any bonds underwritten in whole or in part as
principal and interest by the United States shall not be issued witho
approval of the Secretary of the Treasury. Neither the Directors n
any person executing the bonds shall be liable personally on the bon
of the Authority or be subject to any personal liability or accountabili
by reason of the issuance thereof.
Funding and Refunding

80. Whenever the Board deems it expedient, it may fund and reful
the bonds and other obligations of the Authority whether or not su
bonds and obligations have matured. It may provide for the issuanc
sale or exchange of refunding bonds for the purpose of redeeming or 1
tiring any bonds (including the payment of any premium, duplica
interest or cash adjustment required in connection therewith) issued |
the Authority or issued by any other issuing body, the proceeds of t
sale of which have been applied to any facility acquired by the Authori
or which are payable out of the revenues of any facility acquired by t!
Authority. Bonds may be issued partly to refund bonds and other oblig
tions then outstanding, and partly for any other purpose of the Autho
ity. All provisions of this Title applicable to the issuance of bonds a
applicable to refunding bonds and to the issuance, sale or exchange therec
Bonds; Authorization Generally

31. Bonds and other indebtedness of the Authority shall be autho
ized by resolution of the Board. The validity of the authorization a)
issuance of any bonds by the Authority shall not be dependent upon n
which bonds are authorized to be issued. The Authority may issue bonds
in one or more series and may provide for one or more consolidated bond
issues, in such principal amounts and with such terms and provisions as
the Board may deem necessary. The bonds may be secured by a pledge of
all or any part of the property, revenues and franchises under its control.
Bonds may be issued by the Authority in such amount, with such matur-
ities and in such denominations and form or forms, whether coupon or
registered, as to principal alone or as to both principal and interest, as
may be determined by the Board. The Board may provide for redemption
of bonds prior to maturity on such notice and at such time or times and
with such redemption provisions, including premiums, as the Board may
ine,

Bonds; Resolutions and Indentures Generally

32. The Board may determine and enter into indentures or adopt
resolutions providing for the principal amount, date or dates, maturities,
interest rate, or rates, denominations, form, registration, transfer, inter-
change and other provisions of the bonds and coupons and the terms
and conditions upon which the same shall be executed, issued, secured,
sold, paid, redeemed, funded and refunded. The resolution of the Board
authorizing any bond or any indenture so authorized under which the
bonds are issued may include all such covenants and other provisions
hot inconsistent with the provisions of this Title, other than any re-
striction on the regulatory powers vested in the Board by this Title,
as the Board may deem necessary or desirable for the issue, payment,
security, protection or marketing of the bonds, including without limita-
tion covenants and other provisions as to the rates or amounts of fees,
rents and other charges to be charged or made for use of the facilities;
the use, pledge, custody, securing, application and disposition of such
revenues, of the proceeds of the bonds, and of any other moneys or con-
tracts of the Authority; the operation, maintenance, repair and recon-
struction of the facilities and the amounts which may be expended there-
for; the sale, lease or other disposition of the facilities; the insuring of
the facilities ar: of the revenues derived therefrom; the construction or
other acquisition of other facilities; the issuance of additional bonds
or other indebtedness; the rights of the bondholders and of any trustee for
the bondholders upon default by the Authority or otherwise; and the modi-

ton of the provisions of the indenture and of the bonds. Reference on
the face of the bonds to such resolution or indenture by its date of adoption
or the apparent date on the face thereof is sufficient to incorporate all
of the provisions thereof and of this Title into the body of the bonds
and their appurtenant coupons. Each taker and subsequent holder of the

ds or coupons, whether the coupons are attached to or detached from
¢ bonds, has recourse to all of the provisions of the indenture and of
this Title and is bound thereby. ,
Maximum Maturity
_ 33, No bond or its terms shall mature in more than fifty years from
ls own date and in the event any authorized issue is divided into two or
hore series or divisions, the maximum maturity date herein authorized
tll be calculated from the date on the face of each bond separately,
irrespective of the fact that different dates may be prescribed for the
tonds of each separate series or division of any authorized issue.
Tax Exemption

4, All bonds and all other evidences of debt issued by the Authority
nder the provisions of this Title and the interest thereon shall at all
mes be free and exempt from all taxation by or under authority of any

‘nalry parties, except for transfer, inheritance and estate taxes.

oe YY. 2. 4a ry eo ef a ry ry gf sg g 2
per annum, payable annually or semiannually.
Place of Payment

36. The Board may provide for the payment of the principal ar
interest of bonds at any place or places within or without the signato:
states, and in any specified lawful coin or currency of the United Stat
of America.
Execution

37. The Board may provide for the execution and authentication |
bonds by the manual, lithographed or printed facsimile signature |
members of the Board, and by additional authentication by a trustee «
fiscal agent appointed by the Board; provided, however, that one of su:
signatures shall be manual. If any of the members whose signatures «
countersignatures appear upon the bonds or coupons cease to be membe
before the delivery of the bonds or coupons, their signatures or counte
signatures are nevertheless valid and of the same force and effect as
the members had remained in office until the delivery of the bonds ar
coupons.
Holding Own Bonds

38. The Board shall have power out of any funds available theref
» pores its bonds and may hold, cancel or resell such bonds.
ale

39. The Board may fix terms and conditions for the sale or oth
disposition of any authorized issue of bonds. The Board may sell bon
at less than their par or face value but no issue of bonds may be so
at an aggregate price below the par or face value thereof if such sa
would result in a net interest cost to the Authority calculated upon ft!
entire issue so sold of more than six per cent per annum payable ser
annually, according to standard tables of bond values. All bonds issu
and sold pursuant to this Title may be sold in such manner, either .
public or private sale, as the Board shall determine.

Negotiability

40. All bonds issued under the provisions of this Title are negotiah
instruments.

Bonds Eligible for Investment and Deposit

41. Bonds issued under the provisions of this Title are hereby ma
securities in which all public officers and public agencies of the signatori
and their political subdivisions and all banks, trust companies, savin:
and loan associations, investment companies and others carrying on
banking business, all insurance companies and insurance associations ar
others carrying on an insurance business, all administrators, executo)
guardians, trustees and other fiduciaries, and all other persons may legal
and properly invest funds, including capital in their control or belongi1
to them. Such bonds are hereby made securities which may proper
and legally be deposited with and received by any officer of any signator
or of any agency or political subdivision of any signatory, for any purpo
for which the deposit of bonds or other obligations of such signatory
now or may hereafter be authorized by law.

Validation Proceedings

42. Prior to the issuance of any bonds, the Board may institute
special proceeding to determine the legality of proceedings to issue tl
bonds and their validity under the laws of any of the signatory partie
Such proceeding shall be instituted and prosecuted in rem and the fin
judgment rendered therein shall be conclusive against all persons whor
soever and against each of the signatory parties.

Recording
of the date of receipt of such revenues by the Board of the indenture
trustee. Such pledge shall be effective as provided in the indenture with-
out physical delivery of the revenues to the Board or to the indenture
trustee.

Pledged Revenues

44, Bond redemption and interest payments shall, to the extent pro-
vided in the resolution or indenture, constitute a first, direct and exclusive
charge and lien on all revenues received from the use and operation of
the facility, and on any sinking or other funds created therefrom. All
such revenues, together with interest thereon, shall constitute a trust
fund for the security and payment of such bonds and except as and to
the extent provided in the indenture with respect to the payment there-
from of expenses for other purposes including administration, operation,
maintenance, improvements or extensions of the facilities or other pur-
poses shall not be used or pledged for any other purpose so long as such
bonds, or any of them, are outstanding and unpaid.
Remedies

45, The holder of any bond may for the equal benefit and protection
of all holders of bonds similarly situated: (1) by mandamus or other
appropriate proceedings require and compel the performance of any of
the duties imposed upon the Board or assumed by it, its officers, agents or
employees under the provisions of any indenture, in connection with the
acquisition, construction, operation, maintenance, repair, reconstruction
or lnsurance of the facilities, or in connection with the collection, deposit,
Investment, application and disbursement of the revenues derived from
the operation and use of the facilities, or in connection with the deposit,
investment and disbursement of the proceeds received from the sale of
bonds; or (2) by action or suit in a court of competent jurisdiction of
any signatory party require the Authority to account as if it were the

of an express trust, or enjoin any acts or things which may be

unlawful or in violation of the rights of the holders of the bonds. The
enumeration of such rights and remedies does not, however, exclude the
pee mn i iaaacin of any other rights or remedies available to the
olders of bonds,

Article X

Equipment Trust Certificates
Power

46. The Board shall have power to execute agreements, leases and
equipment trust certificates with respect to the purchase of facilities or
equipment such as cars, trolley buses and motor buses, or other craft, in
the form customarily used in such cases and appropriate to effect such
purchase, and may dispose of such equipment trust certificates in such
manner as it may determine to be for the best interests of the Authority.

ch vehicle covered by an equipment trust certificate shall have the
tame of the owner and lessor plainly marked upon both sides thereof,
Pena by the words “Owner and Lessor’.

en

_41. All monies required to be paid by the Authority under the pro-
"sions of such agreements, leases and equipment trust certificates shall

payable solely from the revenue to be derived from the operation of
é transit system or from such grants, loans, appropriations or other
revenues, as may be available to the Board under the provisions of this
ile Payment for such facilities or equipment, or rentals thereof, may
fe made In installments, and the deferred installments may be evidenced
¥ equipment trust certificates as aforesaid, and title to such facilities
or equipment may not vest in the Authority until the equipment trust
Procedure

48. The agreement to purchase facilities or equipment by the Board
may direct the vendor to sell and assign the equipment to a bank or
trust company, duly authorized to transact business in any of the signa-
tory States, or to the Housing and Home Finance Administrator, as
trustee, lessor or vendor, for the benefit and security of the equipment
trust certificates and may direct the trustee to deliver the facilities and
equipment to one or more designated officers of the Board and may au-
thorize the trustee simultaneously therewith to execute and deliver a lease
of the facilities or equipment to the Board.
Agreements and Leases

49. The agreements and leases shall be duly acknowledged before
some person authorized by law to take acknowledgments of deeds and in
the form required for acknowledgement of deeds and such agreements,
leases, and equipment trust certificates shall be authorized by resolution
of the Board and shall contain such covenants, conditions and provisions
as may be deemed necessary or appropriate to insure the payment of the
equipment trust certificates from the revenues to be derived from the
operation of the transit system and other funds.

The covenants, conditions and provisions of the agreements, leases
and equipment trust certificates shall not conflict with any of the pro-
visions of any resolution or trust agreement securing the payment of
bonds or other obligations of the Authority then outstanding or conflict
with or be in derogation of the rights of the holders of any such bonds
or other obligations.

Law Governing

50. The equipment trust certificates issued hereunder shall be gov-
erned by Laws of the District of Columbia and for this purpose the
chief place of business of the Authority shall be considered to be the
District of Columbia. The filing of any documents required or permitted
to be filed shall be governed by the Laws of the District of Columbia.

Article XI
Operation of Facilities
Operation by Contract or Lease

51. The Authority shall not perform transit service, nor any of the
functions, such as maintenance of equipment and right of way normally
associated with the providing of such service, with any transit facilities
owned or controlled by it but shall provide for the performance of transit
service with such facilities by contract or contracts with private transit
companies, private railroads, or other persons. Any facilities and prop-
erties owned or controlled by the Authority, other than those utilized in
performing transit service, may be operated by the Authority or by others
pursuant to contract or lease as the Board may determine. All operations
of such facilities and properties by the Authority and by its Contractor
and lessees shall be within the Zone.

The Operating Contract ;

52. Without limitation upon the right of the Board to prescribe such
additional terms and provisions as it may deem necessary and appropriate,
the operating contract shall: :

7 “ a) specify the services and functions to be performed by the Con-
actor ;

(b) provide that the Contractor shall hire, supervise and control
all personnel required to perform the services and functions assumed by
it under the operating contract and that all such personnel shall be em-
ployees of the Contractor and not of the Authority; ;

(c) require the Contractor to assume the obligations of the labor
contract or contracts of any transit company which may be acquired by
the eile and assume the pension obligations of any such transit
company

(d) " require the Contractor to comply in all respects with the labor
policy set forth in Article XIV of this Title;

(e) provide that no transfer of ownership of the capital stock,
securities or interests in any Contractor, whose principal business is the
operating contract, shall be made without written approval of the Board
and the certificates or other instruments representing such stock, secur-
ities or interests shall contain a statement of this restriction ;

(f) provide that the Board shall have the sole authority to deter-
mine the rates or fares to be charged, the routes to be operated and the
service to be furnished;

(g) specify the obligations and liabilities which are to be assumed
by the Contractor and those which are to be the responsibility of the
Authority ;

(h) provide for an annual audit of the books and accounts of the
Contractor by an independent certified public accountant to be selected
by the Board and for such other audits, examinations and investigations
of the books and records, procedures and affairs of the Contractor at such
times and in such manner as the Board shall require, the cost of such
audits, examinations and investigations to be borne as agreed by the
parties in the operating contract; and

(1) provide that no operating contract shall be entered into for a
term in excess of five years; provided, that any such contract may be
renewed for successive terms, each of which shall not exceed five years.
Any such operating contract shall be subject to termination by the Board
for cause only.

Compensation for Contractor
33. Compensation to the Contractor under the operating contract
may, in the discretion of the Board, be in the form of (1) a fee paid by
the Board to the Contractor for services, (2) a payment by the Con-
tractor to the Board for the right to operate the system, or (3) such other
arrangement 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 duties delegated under the operat-
Ing 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 operat-
ing contract may provide incentives for efficient and economical man-

t.

agemen
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 efficie:
and economical transit service and in the financial well-being of tl]
Authority and of the private transit companies requires that the publ
and private segments of the regional transit system be operated, to tl
fullest extent possible, as a coordinated system without unnecessary du
licating service.
Implementation of Policy

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

(a) The Authority—

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

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

(3) shall enter into agreements with the private carriers to esta
lish and maintain, subject to approval by WMATC, through routes a1
joint fares and provide for the division thereof, or, in the absence of su
agreements, establish and maintain through routes and joint fares
accordance with orders issued by WMATC directed to the private carrie
when the terms and conditions for such through service and joint far
are acceptable to it.

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

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

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

authorize a private carrier, pursuant to agreement between sa
carrier and the Authority, to establish and maintain through routes ar
joint fares for transportation to be rendered with facilities owned or co
trolled by the Authority if, after hearing held upon reasonable notic
WMATC finds that such through routes and joint fares are required |
the public interest ; and

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

(c) WMATC shall not authorize or require a private carrier —
render any service, including the establishment or continuation of a joi
fare for a through route service with the Authority which is based on
division thereof between the Authority and private carrier which does n
provide a reasonable return to the private carrier, unless the carrier
currently earning a reasonable return on its operation as a whole |
performing transportation subject to the jurisdiction of WMATC. -
determining the issue of reasonable return, WMATC shall take into a
count any income attributable to the carrier, or to any corporation, fir
latory 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, pur-
suant to agreement, make reasonable subsidy payments to any private

carrier,
Rights of Private Carriers Unaffected

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 cogniz-
able 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 car-
riers,

(b) An application by the Board for any such grant or loan shall

based on and supported by a report from WMATC setting forth for
each private carrier to be assisted (1) the equipment and facilities to
be acquired, constructed, reconstructed, or improved, (2) the service
proposed to be rendered by such equipment and facilities, (3) the im-
provement in service expected from such facilities and equipment, (4)
how the use of such facilities and equipment will be coordinated with the
transit facilities owned by the Authority, (5) the ability of the affected
private carrier to repay any such loans or grants and (6) recommended
terms for any such loans or grants.

(c) Any equipment or facilities acquired, constructed, reconstructed
or mproved with the proceeds of such grants or loans shall be owned
by the Authority and may be made available to private carriers only

lease or other agreement which contain provisions acceptable to the
Housing and Home Finance Administrator assuring that the Authority

have satisfactory continuing control over the use of such facilities and

equipment,
Article XIII

. Jurisdiction; Rates and Service
Washington Metropolitan Area Transit Commission

09. Except as provided herein, this Title shall not affect the functions
and jurisdiction of WMATC, as granted by Titles I and II of this Compact,
over the transportation therein specified and the persons engaged therein
and the Authority shall have no jurisdiction with respect thereto.
Public Facilities

60. Service performed by transit facilities owned or controlled by
the Authority, and the rates and fares to be charged for such service,

| be subject to the sole and exclusive jurisdiction of the Board and,
notwithstanding any other provision in this Compact contained, WMATC
thal have no authority with respect thereto, or with respect to any
owned or controlled by the Authority. The determinations of the Board
with respect to such matters shall not be subject to judicial review nor
to the processes of any court.
Standards

61. Insofar as practicable, and consistent with the provision of
adequate service at reasonable fares, the rates and fares and service s
be fixed by the Board so as to result in revenues which will:

(a) pay the operating expenses and provide for repairs, mainte-
nance and depreciation of the transit system owned or controlled by the
Authority ;

(b) provide for payment of all principal and interest on outstand-
ing revenue bonds and other obligations and for payment of all amounts
to sinking funds and other funds as may be required by the terms of
any indenture or loan agreement;

(c) provide for the purchase, lease or acquisition of rolling stock,
including provisions for interest, sinking funds, reserve funds, or other
funds required for the payment of any obligations incurred by the Au-
thority for the acquisition of rolling stock; and

(d) provide funds for any purpose the Board deems necessary and
desirable to carry out the purposes of this Title.

Hearings

62. (a) The Board shall not make or change any fare or rate, nor
establish or abandon any service except after holding a public hearing
with respect thereto.

(b) <Any signatory, any political subdivision thereof, any agency
of the federal government and any person, firm or association served by
or using the transit facilities of the Authority and any private carrier
may file a request with the Board for a hearing with respect to any
rates or charges made by the Board or any service rendered with the
facilities owned or controlled by the Authority. Such request shall be in
writing, shall state the matter on which a hearing is requested and shall
set forth clearly the matters and things on which the request relies. As
promptly as possible after such a request is filed, the Board, or such
officer or employee as it may designate, shall confer with the protestant
with respect to the matters complained of. After such conference, the
Board, if it deems the matter meritorious and of general significance,
may call a hearing with respect to such request.

(c) The Board shall give at least thirty days’ notice for all hearings.
The notice shall be given by publication in a newspaper of daily circula-
tion throughout the Zone and such notice shall be published once a week
for two successive weeks. The notice shall start with the day of first
publication. In addition, the Board shall post notices of the hearing in
its offices, all stations and terminals and in all of its vehicles and rolling
stock in revenue service.

(d) Prior to calling a hearing on any matter specified in this sec-
tion, the Board shall prepare and file at its main office and keep open
for public inspection its report relating to the proposed action to be
considered at such hearing. Upon receipt by the Board of any report sub-
mitted by WMATC, in connection with a matter set for hearing, pursuant
to the provisions of Section 63 of this Article XIII, the Board shall file
such report at its main office and make it available for public inspection.
For hearings called by the Board pursuant to paragraph (b), above, the
Board also shall cause to be lodged and kept open for public inspection
the written request upon which the hearing is granted and all documents
filed in support thereof.

Reference of Matters to WMATC
63. To facilitate the attainment of the public policy objectives for
operation of the publicly and privately owned or controlled transit facil-
ities as stated in Article XII, Section 55, prior to the hearings provided
for by Section 62 hereof—

(a) The Board shall refer to WMATC for its consideration and
recommendations, any matter which the Board considers may affect the
operation of the publicly and privately owned or controlled transit facil-
ities as a coordinated regional transit system and any matter for which
the Board has called a hearing, pursuant to Section 62 of this Article
XIII, except that temporary or emergency changes in matters affecting
service shall not be referred; and

(b) WMATC, upon such reference of any matter to it, shall give
the referred matter preference over any other matters pending before it
and shall, as expeditiously as practicable, prepare and transmit its report
thereon to the Board. The Board may request WMATC to reconsider any
part of its report or to make any supplemental reports it deems necessary.
All of such reports shall be advisory only.

(c) Any report submitted by WMATC to the Board shall consider,
without limitation, the probable effect of the matter or proposal upon the
operation of the publicly and privately owned or controlled transit facil-
ities as a coordinated regional system, passenger movements, fare struc-
tures, service and the impact on the revenues of both the public and private
facilities. , .

Article XIV
Labor Policy

ction
64. The Board shall take such action as may be necessary to insure
that all laborers and mechanics employed by contractors or subcontractors
im the construction, alteration or repair, including painting and decorating,
of projects, buildings and works which are undertaken by the Authority
or are financially assisted by it, shall be paid wages at rates not less
than those prevailing on similar construction in the locality as deter-
mined by the Secretary of Labor in accordance with the Davis-Bacon
Act, as amended (40 U.S.C. 276a-276a-5), and every such employee shall
receive compensation at a rate not less than one and one-half times his
basic rate of pay for all hours worked in any workweek in excess of
eght hours in any workday or forty hours in any workweek, as the case
may be. A provision stating the minimum wages thus determined and
requirement that overtime be paid as above provided shall be set
out in each project advertisement for bids and in each bid proposal
form and shall be made a part of the contract covering the project, which
contract shal] be deemed to be a contract of the character specified in
Section 103 of the Contract Work Hours Standards Act (76 Stat. 357);
as how or as may hereafter be in effect. The Secretary of Labor shall
have, with respect to the administration and enforcement of the labor
standards specified in this provision, the supervisory, investigatory and
other authority and functions set forth in Reorganization Plan Num-
bered 14 of 1950 (15 F.R. 3176, 64 Stat. 1267, 5 U.S.C. 1832-15), and
section 2 of the Act of June 18, 1934, as amended (48 Stat. 948, as
amended; 40 U.S.C. 276 (c) ). The requirements of this section shall
also be applicable with respect to the employment of laborers and mechan-
ks in the construction, alteration or repair, including painting and
decorating, of the transit facilities owned or controlled by the Authority
such activities are performed by a contractor pursuant to agree-
Ment with the operator of such facilities.
Equipment and Supplies
_65. Contracts for the manufacture or furnishing of materials, sup-
plies, articles and equipment shall be subject to the provisions of the
Walsh-Healey Public Contracts Act (41 U.S.C. 35 et seq.), as now or as
may hereafter be in effect.
Operations
66. It shall be a condition of the operation of the transit faciliti
owned or controlled by the Authority that the provisions of section 10 (
of the Urban Mass Transportation Act of 1964 (49 U.S.C. 1609 (c) ) sh:
be applicable to any contract or other arrangement for the operation |
such facilities.
Article XV

Relocation Assistance

Relocation Program and Payments

67. Section 7 of the Urban Mass Transportation Act of 1964, ar
as the same may from time to time be amended, and all regulatio.
promulgated thereunder, are hereby made applicable to individuals, far
ilies, business concerns and non-profit organizations displaced from re
property by actions of the Authority without regard to whether financi
assistance is sought by or extended to the Authority under any provisic
of that Act; provided, however, that in the event real property is acquir
for the Authority by an agency of the federal government, or by a Sta
or local agency or instrumentality, the Authority is authorized to reir
burse the acquiring agency for relocation payments made by it.
Relocation of Public or Public Utility Facilities

68. Notwithstanding the provisions of Section 67 of this Article X'

any highway or other public facility or any facilities of a public utili
company which will be dislocated by reason of a project deemed nece
sary by the Board to effectuate the authorized purposes of this Tit
shall be relocated if such facilities are devoted to a public use, and tl
reasonable cost of relocation, if substitute facilities are necessary, shall |
paid by the Board from any of its monies.

Article XVI
General Provisions

Creation and Administration of Funds

69. (a) The Board may provide for the creation and administr
tion of such funds as may be required. The funds shall be disbursed :
accordance with rules established by the Board and all payments fro
any fund shall be reported to the Board. Monies in such funds and oth
monies of the Authority shall be deposited, as directed by the Board, |
any state or national bank located in the Zone having a total paid-
capital of at least one million dollars ($1,000,000). The trust departme!
of any such state or national bank may be designated as a depository ©
receive any securities acquired or owned by the Authority. The restri
tion with respect to paid-in capital may be waived for any such bar
which agrees to pledge federal securities to protect the funds and secu
ities of the Authority in such amounts and pursuant to such arrang
ments as may be acceptable to the Board.

(b) Any monies of the Authority may, in the discretion of t]
Board and subject to any agreement or covenant between the Autho
ity and the holders of any of its obligations limiting or restricting class
of investments, be invested in bonds or other obligations of, or guarantes
as to interest and principal by, the United States, Maryland, Virginia «
the political subdivisions or agencies thereof.

Annual Independent Audit

70. (a) As soon as practical after the closing of the fiscal year, =<
audit shall be made of the financial accounts of the Authority. The aud
shall be made by qualified certified public accountants selected by tl
Board, who shall have no personal interest direct or indirect in the fina
as the Board shall direct. Copies of the report shall be distributed to
each Director, to the Congress, to the Board of Commissioners of the
District of Columbia, to the Governors of Virginia and Maryland, to the
Washington Suburban Transit Commission, to the Northern Virginia
Transportation Commission and to the governing bodies of the political
subdivisions located within the Zone which are parties to commitments
for participation in the financing of the Authority and shall be made
available for public distribution.

(b) The financial transactions of the Board shall be subject to
audit by the United States General Accounting Office in accordance with
the principles and procedures applicable to commercial corporate trans-
actions and under such rules and regulations as may be prescribed by the
Comptroller General of the United States. The audit shall be conducted
at the place or places where the accounts of the Board are kept.

(c) Any Director, officer or employee who shall refuse to give all
required assistance and information to the accountants selected by the
Board or who shall refuse to submit to them for examination such books,
documents, records, files, accounts, papers, things or property as may be
requested shall, in the discretion of the Board, forfeit his office.

Reports

71. The Board shall make and publish an annual report on its pro-
grams, operations and finances, which shall be distributed in the same
manner provided by Section 70 of this Article XVI for the report of
annual audit, It may also prepare, publish and distribute such other
tai and informational materials as it may deem necessary or
sirable,
Insurance

72. The Board may self-insure or purchase insurance and pay the
premiums therefore against loss or damage to any of its properties;
against liability for injury to persons or property; and against loss of
revenue from any cause whatsoever. Such insurance coverage shall be in
such form and amount as the Board may determine, subject to the re-
quirements of any agreement arising out of issuance of bonds or other
obligations by the Authority.
Purchasing

33, Contracts for the construction, reconstruction or improvement of
any facility when the expenditure required exceeds ten thousand dollars
($1000) and contracts for the purchase of supplies, equipment and
materials when the expenditure required exceeds two thousand five hun-
dred dollars ($2,500) shall be advertised and let upon sealed bids to
the lowest responsible bidder. Notice requesting such bids shall be pub-

ed ina manner reasonably likely to attract prospective bidders, which
Publication shall be made at least ten days before bids are received
and in at least two newspapers of general circulation in the Zone. The
Board may reject any and all bids and readvertise in its discretion. If
alter rejecting bids the Board determines and resolves that, in its opinion,
the supplies, equipment and materials may be purchased at a lower price
in the open market, the Board may give each responsible bidder an op-
portunity to negotiate a price and may proceed to purchase the supplies,
‘quipment and materials in the open market at a negotiated price which is
lower than the lowest rejected bid of a responsible bidder, without further
observance of the provisions requiring bids or notice. The Board shall
adopt rules and regulations to provide for purchasing from the lowest
responsible bidder when sealed bids, notice and publication are not re-
Tured by this section. The Board may suspend and waive the provisions
ot this section requiring competitive bids whenever:

__ (a) the purchase is to be made from or the contract is to be made
division thereof or pursuant to any open end bulk purchase contract of
any of them;
{b) the public exigency requires the immediate delivery of the
articles ;
(c) only one source of supply is available; or
(d) the equipment to be purchased is of a technical nature and the
procurement thereof without advertising is necessary in order to assure
standardization of equipment and interchangeability of parts in the public
interest.
Rights of Way
74. The Board is authorized to locate, construct and maintain any of
its transit and related facilities in, upon, over, under or across any streets,
highways, freeways, bridges and any other vehicular facilities, subject to
the applicable laws governing such use of such facilities by public agencies.
In the absence of such laws, such use of such facilities by the Board shall
be subject to such reasonable conditions as the highway department or
other affected agency of a signatory party may require; provided, how-
ever, that the Board shall not construct or operate transit or related
facilities upon, over, or across any parkways or park lands without the
consent of, and except upon the terms and conditions required by, the
agency having jurisdiction with respect to such parkways and park lands,
but may construct or operate such facilities in a subway under such park-
ways or park lands upon such reasonable terms and conditions as may
be specified by the agency having jurisdiction with respect thereto.
Compliance with Laws, Regulations and Ordinances
75. The Board shall comply with all laws, ordinances and regulations
of the signatories and political subdivisions and agencies thereof with
respect to use of streets, highways and all other vehicular facilities,
ae control and regulation, zoning, signs and buildings.
olice
76. The Board is authorized to employ watchmen, guards and in-
vestigators as it may deem necessary for the protection of its properties,
personnel and passengers and such employees, when authorized by any
jurisdiction within the Zone, may serve as special police officers in any such
jurisdiction. Nothing contained herein shall relieve any signatory or
political subdivision or agency thereof from its duty to provide police
service and protection or to limit, restrict or interfere with the jurisdic-
tion of or performance of duties by the existing police and law enforce-
ment agencies.
Exemption from Regulation
77. Except as otherwise provided in this Title, any transit service
rendered by transit facilities owned or controlled by the Authority and
the Authority or any corporation, firm or association performing such
transit service pursuant to an operating contract with the Authority, shall,
in connection with the performance of such service, be exempt from all
laws, rules, regulations and orders of the signatories and of the United
States otherwise applicable to such transit service and persons, except
that laws, rules, regulations and orders relating to inspection of equip-
ment and facilities, safety and testing shall remain in force and effect;
provided, however, that the Board may promulgate regulations for the
safety of the public and employees not inconsistent with the applicable
cee rules, regulations or orders of the signatories and of the United

Tax Exemption

78. It is hereby declared that the creation of the Authority and the
carrying out of the corporate purposes of the Authority is in all respects
for the benefit of the people of the signatory states and is for a public
purpose and that the Authority and the Board will be performing an
essential governmental function, including, without limitation, proprie-
tary, governmental and other functions, in the exercise of the powers
conferred by this Title. Accordingly, the Authority and the Board shall
not be required to pay taxes or assessments upon any of the property
acquired by it or under its jurisdiction, control, possession or supervision
or upon its activities in the operation and maintenance of any transit
facilities or upon any revenues therefrom and the property and income
derived therefrom shall be exempt from all federal, State, District of
Columbia, municipal and local taxation. This exemption shall include,
mithout limitation, all motor vehicle license fees, sales taxes and motor

taxes.
Free Transportation and School Fares

79. All laws of the signatories with respect to free transportation
and school fares shall be applicable to transit service rendered by facil-
ities owned or controlled by the Authority.
Liability for Contracts and Torts

80. The Authority shall be liable for its contracts and for its torts
and those of its Directors, officers, employees and agents committed in the
conduct of any proprietary function, in accordance with the law of the
applicable signatory (including rules on conflict of laws), but shall not be
lable for any torts occurring in the performance of a governmental func-
tion. The exclusive remedy for such breach of contracts and torts for
which the Authority shall be liable, as herein provided, shall be by suit
against the Authority. Nothing contained in this Title shall be construed
as a waiver by the District of Columbia, Maryland, Virginia and the
counties and cities within the Zone of any immunity from suit.
Jurisdiction of Courts
_ 81. The United States District Courts shall have original jurisdic-
Gon, concurrent with the Courts of Maryland and Virginia, of all actions
brought by or against the Authority and to enforce subpoenas issued
under this Title. Any such action initiated in a State Court shall be re-
movable to the appropriate United States District Court in the manner
provided by Act of June 25, 1948, as amended (28 U.S.C. 1446).
Condemnation

82. (a) The Authority shall have the power to acquire by condemn-
ation. whenever in its opinion it is necessary or advantageous to the
Authority to do so, any real or personal property, or any interest therein,
necessary or useful for the transit system authorized herein, except prop-
erty owned by the United States, by a signatory, or any political sub-
é:vision thereof, or by a private transit company.

(b) Proceedings for the condemnation of property in the District
of Columbia shall be instituted and maintained under the Act of De-
cember 23, 1963 (77 Stat. 577-581, D. C. Code 1961, Supp. IV, Sections
1351-1368). Proceedings for the condemnation of property located else-
where within the Zone shall be instituted and maintained, if applicable,
pursuant to the provisions of the Act of August 1, 1888, as amended
(25 Stat. 357, 40 U.S.C. 257) and the Act of June 25, 1948 (62 Stat. 935
and 937, 28 U.S.C. 1358 and 1403) or any other applicable Act; provided,
however, that if there is no applicable federal law, condemnation proceed-
-ngs shai] be in accordance with the provisions of the state law of the
Signatory in which the property is located governing condemnation by
the highway agency of such state. Whenever the words “real property,”
» “land,” “easement,” “right-of-way,” or words of similar mean-
ing are used in any applicable federal or state law relating to procedure,
Jurisdiction and venue, they shall be deemed, for the purposes of this
Title, to include any personal property authorized to be acquired here-

( e) Any award or compensation for the taking of property pursuant
to this Title shall be paid by the Authority, and none of the signatory
parties nor any other agency, instrumentality or political subdivision
thereof shall be liable for such award or compensation.

Enlargement and Withdrawal; Duration oo

83. (a) When advised in writing by the Northern Virginia Trans-
portation Commission or the Washington Suburban Transit Commission
that the geographical area embraced therein has been enlarged, the Board,
upon such terms and conditions as it may deem appropriate, shall by
resolution enlarge the Zone to embrace the additional area. ;

(b) The duration of this Title shall be perpetual but any signatory
La may withdraw therefrom upon two years’ written notice to the

oard.

(c) The withdrawal of any signatory shall not relieve such signa-
tory, any transportation district, county or city or other political sub-
division thereof from any obligation to the Authority, or inuring to the
benefit of the Authority, created by contract or otherwise.

Amendments and Supplements ;

84. Amendments and supplements to this Title to implement the
purposes thereof may be adopted by legislative action of any of the signa-
tory parties concurred in by all of the others.

Construction and Severability

85. The provisions of this Title and of the agreements thereunder
shall be severable and if any phrase, clause, sentence or provision of
this Title or any such agreement is declared to be unconstitutional or
the applicability thereof to any signatory party, political subdivision or
agency thereof is held invalid, the constitutionality of the remainder of
this Title or any such agreement and the applicability thereof to any
other signatory party, political subdivision or agency thereof or circum-
stance shall not be affected thereby. It is the legislative intent that the
provisions of this Title be reasonably and liberally construed.

Effective Date; Execution

86. This Title shall be adopted by the signatories in the manner
provided by law therefor and shall be signed and sealed in four duplicate
original copies. One such copy shall be filed with the Secretary of State
of each of the signatory parties or in accordance with laws of the State
in which the filing is made, and one copy shall be filed and retained in
the archives of the Authority upon its organization. This Title shall be-
come effective ninety days after the enactment of concurring legislation
by or on behalf of the District of Columbia, Maryland and Virginia and
consent thereto by the Congress and all other acts or actions have been
taken, including the signing and execution of the Title by the Governors
of Haryland and Virginia and the Commissioners of the District of Co-
umbia.

2. Anemergency exists and this act is in force from its passage.

Chapter 2

STATE OFFICERS AND EMPLOYEES GENERALLY

§§ 2.1-9 to 2.1-20

Chapter $

HOLIDAYS AND SPECIAL DAYS; HOURS OF WORE, ETC.

§§ 2.1-21 to 2.1-29