
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 45USC712]

 
                           TITLE 45--RAILROADS
 
                CHAPTER 16--REGIONAL RAIL REORGANIZATION
 
            SUBCHAPTER II--UNITED STATES RAILWAY ASSOCIATION
 
Sec. 712. Functions of Association


(a) General

    The Association is authorized to--
        (1) monitor the financial performance of the Corporation;
        (2) review whether the goals and requirements of this chapter 
    are met;
        (3) purchase or otherwise acquire or receive, and hold and 
    dispose of securities (whether debt or equity) of the Corporation 
    under sections 726 and 727 of this title and exercise all of the 
    rights, privileges, and powers of a holder of any such securities;
        (4) purchase accounts receivable of the Corporation in 
    accordance with section 727 of this title;
        (5) appoint and fix the compensation of such personnel as the 
    Association considers necessary and appropriate; and
        (11) \1\ determine the value of the Alaska Railroad, as required 
    by section 1204 of this title.
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    \1\ So in original. Probably should be ``(6)''.
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(b) Investment of funds

    Uncommitted funds of the Association shall be kept in cash on hand 
or on deposit, or invested in obligations of the United States or 
guaranteed thereby, or in obligations, participations, or other 
investments which are lawful investments for fiduciary, trust, or public 
funds.

(c) Exemption from taxation

    The Association, including its franchise, capital reserves, surplus, 
security holdings, and income shall be exempt from all taxation now or 
hereafter imposed by the United States, any commonwealth, territory, 
dependency, or possession thereof, or by any State or political 
subdivision thereof, except that any real property of the Association 
shall be subject to taxation to the same extent according to its value 
as other real property is taxed.

(d) Reports

    (1) \2\ The Association shall transmit to the Congress and the 
President, not later than 90 days after the end of each fiscal year, a 
comprehensive and detailed report on all activities of the Association 
during the preceding fiscal year. Each such report shall include (A) the 
Association's statement of specific and detailed objectives for the 
activities and programs conducted and assisted under this chapter; (B) 
statements of the Association's conclusions as to the effectiveness of 
such activities and programs in meeting the stated objectives and the 
purposes of this chapter, measured through the end nd of the preceding 
fiscal year; (C) recommendations with respect to any legislation or 
administrative action which the Association deems necessary or 
desirable; (D) a statistical compilation of the obligations issued, 
certificates of value issued, securities purchased, and loans made under 
this chapter; (E) a summary of outstanding problems confronting the 
Association, in order of priority; (F) all other information required to 
be submitted to the Congress pursuant to any other provision of this 
chapter; and (G) the Association's projections and plans for its 
activities and programs during the next fiscal year.
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    \2\ Par. ``(1)'' designation supplied editorily.
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    (2) For the fiscal year beginning October 1, 1977, and ending 
September 30, 1978, the Association shall transmit to the Congress and 
the President, not later than 30 days after the end of each quarter of 
such fiscal year, a comprehensive and detailed report on all 
expenditures and use of funds during the preceding fiscal quarter, 
including an assessment of the status of projects for such preceding 
fiscal quarter and a projection of activities proposed for the next 
fiscal quarter.
    (3) The Association shall transmit to the Congress, no later than 30 
days after the end of each fiscal quarter, a report with respect to the 
proceedings before the special court to determine the valuation of rail 
properties conveyed to the Corporation under section 743 of this title. 
Each such report shall include--
        (A) a detailed accounting of the Federal funds expended during 
    such quarter in connection with such proceedings, and the purposes 
    for which such funds were expended;
        (B) an explanation of the status of such proceedings, including 
    the prospects for settlement or conclusion; and
        (C) an identification of which responsibilities in connection 
    with such proceedings are being carried out directly by the 
    Association, and which are being carried out by contract with 
    private organizations.

(e) Budget

    The receipts and disbursements of the Association (other than 
administrative expenses referred to in subsection (g) \3\ of this 
section and receipts and disbursements under section 726 of this title 
and section 746 of this title) in the discharge of its functions shall 
not be included in the totals of the budget of the United States 
Government, and shall be exempt from any annual expenditure and net 
lending (budget outlays) limitations imposed on a budget of the United 
States Government. The Chairman of the Association shall transmit 
annually to the Congress a budget for program activities and for 
administrative expenses of the Association. The Chairman shall report 
annually to the Congress the amount of net lending of the Association, 
which would be included in the totals of the budgets of the United 
States Government, if the Association's activities were not excluded 
from those totals as a result of this section.
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    \3\ So in original. Subsec. (g) redesignated (f) by Pub. L. 97-35.
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(f) Accountability

    The Chairman of the Association shall transmit annually to the 
Office of Management and Budget a budget for administrative expenses of 
the Association. Whenever the Association submits any budget estimate or 
request to the Office of Management and Budget, it shall concurrently 
transmit a copy of the estimate or request to the Congress. Within 
budgetary constraints of the Congress, the maximum feasible and prudent 
budgetary flexibility shall be provided to the Association to permit 
effective operations.

(g) Transfer of litigation

    No later than March 1, 1980, the Association and the Attorney 
General of the United States shall develop and submit to the Congress a 
feasibility study for the transfer, to the appropriate department or 
agency of the Federal Government, of all responsibility for representing 
the United States in the proceedings before the special court to 
determine the valuation of rail properties conveyed to the Corporation 
under section 743 of this title.

(h) Transfer of other functions

    No later than March 1, 1980, the Association and the Secretary of 
Transportation shall develop and submit to the Congress a feasibility 
study for the transfer of all functions of the Association, other than 
those referred to in subsection (h) \4\ of this section, to the 
appropriate department or agency of the Federal Government, including 
the abolition of those functions which will no longer be necessary.
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    \4\ So in original. Subsec. (h) redesignated (g) by Pub. L. 97-35.
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(i) Monitoring of contractors

    The Board of Directors of the Association shall adopt procedures to 
insure (1) that contractors, including law firms, provide reports 
containing written verification of tasks assigned, work performed, time 
worked, and costs incurred, including periodic status reports on work 
performed, (2) that such reports are audited by the Association, (3) 
that no funds are paid to contractors without written reports complying 
with the requirements of this subsection, and (4) that the Association 
applies such procedures uniformly to all contractors.

(Pub. L. 93-236, title II, Sec. 202, Jan. 2, 1974, 87 Stat. 990; Pub. L. 
94-5, Sec. 2(a), Feb. 28, 1975, 89 Stat. 7; Pub. L. 94-210, title VI, 
Secs. 601(c), 607(b), (c), Feb. 5, 1976, 90 Stat. 84, 96; Pub. L. 95-
199, Sec. 2, Nov. 23, 1977, 91 Stat. 1423; Pub. L. 96-73, title II, 
Secs. 202, 203, Sept. 29, 1979, 93 Stat. 555; Pub. L. 97-35, title XI, 
Sec. 1148(a), (b), Aug. 13, 1981, 95 Stat. 674; Pub. L. 97-468, title 
VI, Sec. 605(e), Jan. 14, 1983, 96 Stat. 2564.)

                          Codification

    Subsec. (f), formerly (g), of this section as originally enacted 
consisted of pars. (1) and (2). Par. (1), which amended section 856 of 
former Title 31, Money and Finance, was repealed by Pub. L. 97-258, 
Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068, the first section of which 
enacted Title 31.


                               Amendments

    1983--Subsec. (a)(11). Pub. L. 97-468 added par. (11).
    1981--Subsec. (a). Pub. L. 97-35, Sec. 1148(a)(1), substituted 
provisions respecting financial performance monitoring, goal review, 
etc., for provisions respecting plan preparation and implementation, 
issuance of obligations, etc.
    Subsecs. (b) to (j). Pub. L. 97-35, Sec. 1148(a), struck out subsec. 
(b) which related to additional duties of the Association, and 
redesignated subsecs. (c) to (j) as (b) to (i), respectively.
    1979--Subsec. (e)(3). Pub. L. 96-73, Sec. 202, added par. (3).
    Subsecs. (h) to (j). Pub. L. 96-73, Sec. 203, added subsecs. (h) to 
(j).
    1977--Subsec. (e). Pub. L. 95-199 substituted ``Reports'' for 
``Annual report'' in heading, redesignated cls. (1) through (7) as cls. 
(A) through (G) in first par., and added par. (2).
    1976--Subsec. (a)(2). Pub. L. 94-210, Sec. 601(c), inserted 
provisions relating to securities under section 726 of this title and 
certificates of value under section 746 of this title.
    Subsec. (e). Pub. L. 94-210, Sec. 607(b), in cl. (4) inserted ``, 
certificates of value issued, securities purchased,'' after 
``obligations issued''.
    Subsec. (f). Pub. L. 94-210, Sec. 607(c), inserted provisions 
relating to receipts and disbursements under sections 726 and 746 of 
this title.
    1975--Subsec. (b)(2). Pub. L. 94-5, Sec. 2(a)(1), inserted ``and 
express'' after ``rail'' wherever appearing.
    Subsec. (b)(7). Pub. L. 94-5, Sec. 2(a)(2), substituted ``; and'' 
for a period at end of par. (7).
    Subsec. (b)(8). Pub. L. 94-5, Sec. 2(a)(3), added par. (8).


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section 1169 
of Pub. L. 97-35, set out as an Effective Date note under section 1101 
of this title.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-73 effective Oct. 1, 1979, see section 
501(a) of Pub. L. 96-73.

 Abolition of Special Court, Regional Rail Reorganization Act of 1973, 
                        and Transfer of Functions

    Special court abolished and all jurisdiction and functions 
transferred to United States District Court for District of Columbia, 
see section 719(b)(2) of this title.

Abolition of United States Railway Association and Transfer of Functions 
                             and Securities

    See section 1341 of this title.


           Applicability of National Environmental Policy Act

    Application of National Environmental Policy Act to actions of 
Commission not affected by title VI of Pub. L. 94-210, see section 619 
of Pub. L. 94-210, set out as a note under section 791 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 716, 719 of this title.
