An Act to amend the National Capital Transportation Act of 1969 to provide for Federal guarantees of obligations issued by the Washington Metropolitan Area Transit Authority, to authorize an increased contribution by the District of Columbia, and for other purposes
PL 92-349 (H.R.15507), enacted 07/13/1972

464 
PUBLIC LAW 92-349-JULY 13, 1972 
[86 
STAT. 
Public Law 92-349 
July 13, 1972 
[H. R.15507] 
AN ACT 
National Capital 
Transportation 
Act of 1972. 
Conditions. 
To amend the National Capital Transportation Act of 1969 to provide for Fed-
eral guarantees of obligations issued by the Washington Metropolitan Area 
Transit Authority, to authorize an increased contribution by the District of 
Columbia, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may 
be cited as the "National Capital Transportation Act of 1972". 
TITLE 
I—FEDERAL GUARANTEES 
OF 
WASHINGTON 
METROPOLITAN AREA TRANSIT AUTHORITY OBLIGA-
TIONS 
"I*?;ie?:i44i 
SEC. 101. The National Capital Transportation Act of 1969 is 
note. " ° * * 
amended by adding at the end thereof the following new sections: 
"GUARANTEE or TRANSIT AUTHORITY OBLIGATIONS 
•"SEC. 9. (a) The Secretary of Transportation is authorized to guar-
antee, and to enter into commitments to guarantee, upon such terms 
and conditions as he may prescribe, paj^ment of principal of and inter-
est on bonds and other evidences of indebtedness (including short-
term notes) issued with the approval of the Secretary of the Treasury 
by the Transit Authority und!er the Compact. No such guarantee or 
commitment to guarantee shall be made unless the Secretary of Trans-
portation determines and certifies that— 
"(1) the obligation to be guaranteed represents an acceptable 
financial risk to the United States and the prospective revenues 
of the Transit Authority (including payments under section 10) 
furnish reasonable assurance that timely payments of interest on 
such obligation will be made; 
"(2) the Transit Authority has entered into an agreement with 
the Secretary of Transportation providing for reasonable and 
prudent action by the Transit Authority respecting its financial 
condition if at any time the Secretary, in his discretion, deter-
mines that such action would be necessary to protect the interest 
of the United States; 
"(3) unless the obligation is a short-term note (as determined 
by the Secretary), it will be sold through a process of competitive 
bidding as prescribed by the Secretary of Transportation; and 
"(4) the rate of interest payable with respect to such obliga-
tion is reasonable in light of prevailing market yields. 
Notwithstanding clause (3) of the preceding sentence, the Secretary 
of Transportation may guarantee an obligation under this section 
sold through a process of negotiation if he makes a determination that 
prevailing market conditions would result in a higher net interest cost 
or would otherwise increase the cost of issuing the obligation if the 
obligation was sold through the competitive bidding process. The 
Secretary's determination shall be in writing and shall contain a 
detailed explanation of the reasons therefor. 
"(b) Any guarantee of obligations made by the Secretary of 
Transportation under this section shall be conclusive evidence of the 
eligibility of the obligations for such guarantee, and the validity of 
any guarantee so made shall be incontestable, except for fraud or 
material misrepresentation, in the hands of a holder of the guaran-
teed obligation. 
, , ^ . . . . . . . 
, , 
Conclusive 
evidence of eli 
bility. 
86 STAT. ] 
PUBLIC L
A
W 92-349-JULY 13, 1972 
465 
"(c) The aggregate principal amount of obligations which may be 
guaranteed under this section shall not exceed $1,200,000,000; except 
that (1) no obligation may be guaranteed under this section if, taking 
into account the principal amount of that obligation, the aggregate 
amount of principal of outstanding obligations guaranteed under this 
section exceeds $900,000,000 unless the local participating govern-
ments (A) make, in accordance with agreements entered into with the 
Transit Authority, capital contributions to the Transit Authority for 
the Adopted Regional System in a total amount not le^ than 50 per 
centum of the amount by which the principal of such obligation causes 
such aggregate amount of principal to exceed $900,0(30,000, or (B) have 
entered into enforceable commitments with the Transit Authority to 
make such contributions by the end of the fiscal year in which such 
obligation is issued, and (2) obligations eligible for guarantees under 
this section which are issued solely for the purpose of refunding exist-
ing obligations previously guaranteed under this section may be guar-
anteed without regard to tne $1,200,000,000 limitation. 
"(d) The interest on any obligation of the Transit Authority issued 
after the date of the enactment of this section shall be included in gross 
income for the purposes of chapter 1 of the Internal Eevenue Code of 
1954. 
Limitations. 
(C 
68A Stat. 5. 
26 use 1. 
REIMBURSEMENT FOR INTEREST AND RELATED COSTS 
"SEC. 10. The Secretary of Transportation shall make periodic pay-
ments to the Transit Authority upon request therefor by the Transit 
Authority in such amounts as may be necessary to equal one-fourth of 
the total of the— 
" (1) net interest cost, and 
" (2) fees, commissions, and other costs of issuance, 
which the Secretary determines the Transit Authority incurred on its 
obligations issued after the date of the enactment of this section. 
(( 
AUTHORIZATION OF APPROPRIATIOXK 
tions, issuance. 
"SEC. 11. (a) There are authorized to be appropriated to the Secre-
tary of Transportation such amounts as may be necessary to enable 
him to discharge his responsibilities under guarantees issued by him 
under section 9 and to make the payments to the Transit Authority in 
accordance with section 10. Amounts appropriated under this sectioii 
shall be available without fiscal year limitation. 
"(b) If at any time the moneys available to the Secretary of Trans- 
Notes or obiiga-
portation are insufficient to enable him to discharge his responsibilities *'""'' '"'"""'=•'• 
under guarantees issued by him under section 9 or to make payments 
to the Transit Authority m accordance with section 10, he shall issue 
to the Secretary of the Treasury notes or other obligations in such 
forms and denominations, bearing such maturities, and subject to such 
terms and conditions, as may be prescribed by the Secretary of the 
Treasury. Redemption of such notes or obligations shall be made by the 
Secretary of Transportation from appropriations available under sub-
section (a) of this section. Such notes or other obligations shall bear 
interest at a rate determined by the Secretary of the Treasury, taking 
into consideration the current average market yield on outstanding 
marketable obligations of the United States of comparable maturities 
during the month preceding the issuance of the notes or other obliga-
tions. The Secretary of the Treasury shall purchase any notes or other 
obligations issued hereunder and for that purpose he is authorized to 
use as a public debt transaction the proceeds from the sale of any 
securities issued under the Second Liberty Bond Act and the purposes ^° f,T^\l^^' 
for which securities may be issued under that Act are extended to ^' '""^""''' 
include any purchase of such notes or obligations. The Secretary of 
31 use 774. 
466 
PUBLIC LAW 92-349-JULY 13, 1972 
[86 
STAT. 
Ante, p. 464. 
Study. 
84 Stat. 967. 
49 u s e 1612. 
Report to Con-
gress. 
83 Stat. 321. 
83 Stat. 321. 
Washington 
Metropolitan Area 
Transit Authority 
Compact, amend-
ments. 
80 Stat. 1324. 
the Treasury may at any time sell any of the notes or other obligations 
acquired by him under this subsection. All redemptions, purchases, 
and sales by the Secretary of the Treasury of such notes or other 
obligations shall be treated as public debt transactions of the United 
States. 
"OBLIGATIONS AS LAWFUL INVESTMENTS 
"SEC. 12. (a) Obligations issued by the Transit Authority which are 
guaranteed by the Secretary of Transportation under section 9 shall 
be lawful investments, and may be accepted as security for fiduciary, 
trust, and public funds, the investment or deposit of which shall be 
under authority or control of the United States or of any officer or 
officers thereof, and shall be deemed to be exempt securities within the 
meaning of laws administered by the Securities and Exchange Com-
mission to the same extent as securities which are issued by the United 
States. 
"(b) The sixth sentence of the paragraph of section 5136 of the 
Revised Statutes of the United States designated 'Seventh' (12 U.S.C. 
24) is amended by inserting', or obligations of the Washington Metro-
politan Area Transit Authority which are guaranteed by the Secre-
tary of Transportation under section 9 of the National Capital 
Transportation Act of 1969' immediately following 'or general obli-
gations of any State or of any political subdivision thereof. 
"(c) Any building association, building and loan association, or 
savings and loan association, incorporated or unincorporated, orga-
ganized and operating under the laws of the District of Columbia, or 
any Federal savings and loan association, may invest its funds in 
obligations of the Transit Authority which are guaranteed by the 
Secretary of Transportation under section 9." 
SEC. 102. The Secretary of Transportation shall: 
(1) conduct a study to determine the additional funds (if any) 
needed to bring the facilities and services of the Adopted Regional 
System into conformity with the national policy respecting the 
needs of the elderly and the handicapped stated in section 16(a) 
of the Urban Mass Transportation Act of 1964, and 
(2) report to the Congress the results of such study. 
TITLE II—INCREASED DISTRICT OF COLUMBIA 
CONTRIBUTION 
SEC. 201. (a) Section 4(a) of the National Capital Transportation 
Act of 1969 (D.C. Code, sec. 1-1443(a)) is amended (1) by striking 
out "$216,500,000" and inserting in lieu thereof "$269,700,000", and 
(2) by striking out "$166,500,000" and inserting in lieu thereof 
"$219,700,000". 
(b) Paragraph (3) of subsection (b) of the first section of the Act 
of June 6, 1958 (D.C. Code, sec. 9-220(b)(3)) is amended (1) by 
striking out "$216,500,000" and inserting in lieu thereof "$269,700,000", 
and (2) by striking out "$166,500,000" "^'^ n.^c.or.fiT.n, ir. iio„ fi.or.o«* 
"$219,700,000". 
and inserting in lieu thereof 
TITLE III—COMPACT AMENDMENTS 
SEC. 301. (a) The Congress hereby consents to amendments to 
articles I, III, VII, IX, XI, XIV, and X V I of title I I I of the Wash-
ington Metropolitan Area Transit Regulation Compact (D.C. Code, 
sec. 1-1431 note) substantially as follows: 
86 STAT. ] 
PUBLIC LAW 92-349-JULY 13, 1972 
467 
(1) Section 1 (g) of article I is amended to read as follows: 
so stat. 1325. 
"(g) 'Transit services' means the transportation of persons and their 
packages and baggage by means of transit facilities between points 
" 
within the Zone including the transportation of newspapers, express, "
"
^
^ 
and mail between such points, and charter service which originates 
within the Zone but does not include taxicab service or individual-
ticket-sales sightseeing operations; and". 
(2) Section 5(a) of article I I I is amended to read as follows: 
"5. (a) The Authority shall be governed by a Board of six Directors 
consisting of two Directors for each signatory. For Virginia, the Direc-
tors shall be appointed by the Northern Virginia Transportation Com-
mission; for the District of Columbia by the City Council of the 
District of Columbia from among its members, the Commissioner and 
the Assistant to the Commissioner of the District of Columbia; and 
for Maryland, by the Washington Suburban Transit Commission. In 
each instance the Director shall be appointed from among the mem-
bers of the appointing body^ except as otherwise provided herein, 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 appointing 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, except that, in the case of the 
District of Columbia where only one Director and his alternate are 
present, such alternate may act on behalf of the absent Director. 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." 
(3) Section 21 of article VII is amended to read as follows: 
"Temporary Borrowing 
"21. The Board may borrow, in anticipation of receipts, from any 
signatory, the Washington Suburban Transit District, the Northern 
Virginia 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 such rates of interest as shall be acceptable 
to the Board. The signatories and any such political subdivision or 
agency may, in its discretion, make such loans from any available 
money." 
(4) Section 35 of article I X is amended to read as follows: 
"Interest 
"35. Bonds shall bear interest at such rate or rates as may be 
determined by the Board, payable annually or semiannually." 
(5) Section 39 of article I X is amended to read as follows: 
"Sale 
"39. The Board may fix terms and conditions for the sale or other dis-
position of any authorized issue of bonds. The Board may sell bonds 
at less than their par or face value but no issue of bonds may be sold at 
an aggregate price below the par or face value thereof if such sale 
would result in a net interest cost to the Authority calculated upon the 
entire issue so sold in excess of the applicable rate determined by the 
D.C. Code 
1-1431 note. 
Transit serv-
468 
PUBLIC LAW 92-349-.JULY 13, 1972 
[86 STAT. 
Boardj payable semiannually, computed with relation to the absolute 
,„ 
maturity of the bonds according to standard tables of bond values, 
deducting the amount of any premium to be paid on the redemption oi 
any bonds prior to maturity. All bonds issued and sold pursuant to this 
title may be sold in such manner, either at public or private sale, as the 
Board shall determine." 
D?c*°c"odf *°" 
(^) Section 51 of article XI is amended to read as follows: 
1-1431 note. 
80 Stat. 715. 
"Operation by Contract or Lease 
"51. Any facilities and properties owned or controlled by the Au-
thority may be operated by the Authority directly or by others pur-
suant to contract or lease as the Board may determine." 
(7) Section 66 of article XIV is amended to read as follows: 
"Operations 
"66. (a) The rights, benefits, and other employee protective condi-
tions and remedies of section 13(c) of the Urban Mass Transportation 
^
7
8 stat^ 307; 
^ct of 1964, as amended (49 U.S.C. 1609(c)), as determined l3y the 
Secretary of Labor shall apply to the operation by the Washington 
Metropolitan Area Transit Authority of any mass transit facilities 
owned or controlled by it and to any contract or other arrangement 
for the operation of transit facilities. Whenever the Authority shall 
operate any transit facility or enter into any contractual or other ar-
rangements for the operation of such transit facility the Authority 
shall extend to employees of affected mass transportation systems first 
opportunity for transfer and appointment as employees of the Au-
thority in accordance with seniority, in any nonsupervisory job in 
respect to such operations for which they can qualify after a reason-
able training period. Such employment shall not result in any worsen-
ing of the employee's position in his former employment nor any loss 
of wages, hours, working conditions, seniority, fringe benefits and 
rights and privileges pertaining thereto. 
"(b) The Authority shall deal with and enter into written con-
tracts with employees as defined in section 152 of title 29, United 
States Code, through accredited representatives of such employees or 
representatives of any labor organization authorized to act for such 
employees concerning wages, salaries, hours, working conditions, and 
pension or retirement provisions. 
"(c) In case of any labor dispute involving the Authority and such 
employees where collective bargaining does not result in agreement, 
the Authority shall submit such dispute to arbitration by a board com-
posed of three persons, one appointed by the Authority, one appointed 
by the labor organization representing the employees, and a third 
member to be agreed upon by the labor organization and the Authority. 
The member agreed upon by the labor organization and the Authority 
shall act as chairman of the board. The determination of the majority 
of the board of arbitration, thus established shalJ be final and binding 
on all matters in dispute. If after a period of ten days from the date 
of the appointment of the two arbitrators representing the Authority 
and the labor organization, the third arbitrator has not been selected, 
61 Stat. 137. 
"Labor dis-
pute." 
86 STAT. ] 
PUBLIC LAW 92-349-JULY 13, 1972 
469 
then either arbitrator may request the Federal Mediation and Concilia-
tion Service to furnish a list of five persons from which the third 
arbitrator shall be selected. The arbitrators appointed by the Author-
ity and the labor organization, promptly after the receipt of such list 
shall determine by lot the order of elimination, and thereafter each 
shall in that order alternately eliminate one name until only one name 
remains. The remaining person on the list shall be the third arbitra-
tor. The term 'labor dispute' shall be broadly construed and shall 
include any controversy concerning wages, salaries, hours, working 
conditions, or benefits including health and welfare, sick leave, insur-
ance or pension or retirement provisions but not limited thereto, and 
including any controversy concerning any differences or questions that 
may arise between the parties includmg but not limited to the making 
or maintaining of collective bargaining agreements, the terms to be 
included in such agreements, and the interpretation or application of 
such collective bargaining agreements and any grievance that may 
arise and questions concerning representation. Each party shall pay 
one-half of the expenses of such arbitration. 
"(d) The Authority is hereby authorized and empowered to estab-
lish and maintain a system of pensions and retirement benefits for 
such officers and employees of the Authority as may be designated or 
described by resolution of the Authority; to fix the terms of and 
restrictions on admission to such system and the classifications therein; 
to provide that persons eligible for admission in such pension system 
shall not be eligible for admission to, or receive any benefits from, any 
other pension system (except social security benefits), Avliich is 
financed or funded, in whole or in part, directly or indirectly by funds 
paid or appropriated by the Authority to such other pension system, 
and to provide in connection with such pension system, a system of 
benefits payable to the beneficiaries and dependents of any participant 
in such pension system after the death of such participant (whether 
accidental or otherwise, whether occurring in the actual performance 
of duty or otherwise, or both) subject to such exceptions, conditions, 
restrictions and classifications as may be provided by resolution of 
the Authority. Such pension system shall be financed or funded by such 
means and in such manner as may be determined by the Authority to 
be economically feasible. Unless the Authority shall otherwise deter-
mine, no officer or employee of the Authority and no beneficiary or 
dependent of any such officer or employee shall be eligible to receive 
any pension or retirement or other benefits both from or under any 
such pension system and from or under any pension or retirement 
system established by an acquired transportation system or established 
or provided for, by or under the provisions of any collective bargain-
ing agreement between the Authority and the representatives of its 
employees. 
"(e) Whenever the Authority acq[uires existing transit facilities 
from a public or privately owned utility either in proceeding by emi-
nent domain or otherwise, the Authority shall assume and observe all 
existing labor contracts and pension obligations. When the Authority 
acquires an existing transportation system, all employees who are 
necessary for the operation thereof by the Authority shall be trans-
ferred to and appointed as employees of the Authority, subject to all 
the rights and benefits of this title. These employees shall be given 
seniority credit and sick leave, vacation, insurance and pension credits 
in accordance with the records or labor agreements from the acquired 
transportation system. Members and beneficiaries of any pension or 
retirement system or other benefits established by the acquired trans-
portation system shall continue to have rights, privileges, benefits, 
obligations and status with respect to such established system. The 
Authority shall assume the obligations of any transportation system 
470 
PUBLIC LAW 92-350-JULY 13, 1972 
[86 STAT. 
80 Stat. 1350. 
D.C. Code 
1-1431 note. 
D. C. Code 
1-1431 note. 
acquired by it with regard to wages, salaries, hours, working condi-
tions, sick leave, health and welfare and pension or retirement provi-
sions for employees. It shall assume the provisions of any collective 
bargaining agreement between such acquired transportation system 
and the representatives of its employees. The Authority and the 
employees, through their representatives for collective bargaining 
purposes, shall take whatever action may be necessary to have pension 
trust funds presently under the joint control of the acquired transpor-
tation system and the participating employees through their repre-
sentative transferred to the trust fund to be established, maintained and 
administered jointly by the Authority and the participating employees 
through their representatives. No employee of any acquired transpor-
tation system who is transferred to a position with the Authority 
shall by reason of such transfer be placed in any woi^© position with 
respect to workmen's compensation, pension, seniority, wages, sick 
leave, vacation, health and welfare insurance or any other benefits, 
than he enjoyed as an employee of such acquired transportation 
system." 
(8) Section 79 of article XVI is amended to read as follows: 
"Eeduced Fares 
"79. The District of Columbia, the Northern Virginia Transporta-
tion District, the Washington Suburban Transit District and the com-
ponent governments thereof, may enter into contracts or agreements 
with the Authority to make equitable payments for fares lower than 
those established by the Authority pursuant to the provisions of article 
X I I I hereof for any specified class or category of riders." 
(b) The Commissioner of the District of Columbia is authorized 
and directed to enter into and execute on behalf of the District of 
Columbia amendments, substantially as set forth in subsection (a), 
to title I I I of the Washington Metropolitan Area Transit Eegulation 
Compact with the States of Virginia and Maryland. 
Approved July 13, 1972. 
Public Law 92-350 
July 13, 1972 
[S. J . Res. 245] 
National Voter 
Registration 
Month. 
Designation 
authorization. 
JOINT RESOLUTION 
Authorizing tlie President to designate the calendar month of September 1972 as 
"National Voter Registration Month". 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assembled, That in recognition of the 
importance of Congress promotion and encouragement of voter regis-
tration by all qualified citizens, especially those newly enfranchised by 
the twenty-sixth amendment to the Constitution, the President is 
authorized and directed to proclaim the period beginning September 1, 
1972, and ending September 30,1972, as "National Voter Registration 
Month", and to call upon the people of the United States to observe 
such month with appropriate ceremonies and activities. 
Approved July 13, 1972.