Joint resolution granting the consent and approval of Congress for the State of Maryland, the Commonwealth of Virginia, and the District of Columbia to amend the Washington Metropolitan Area Transit Regulation Compact, and for other purposes
PL 87-767 (H.J.Res.693), enacted 10/09/1962

m4 
PUBLIC LAW 87-767-OCT. 9, 1962 
[76 STAT. 
October 9, 1962 
[H. J. Res. 693] 
Washington 
Metropolitan Area 
Transit Regula-
tion Compact, 
amendment. 
40 u s e 651 
note. 
74 Stat. 1032, 
1035, 1049. 
Public Law 87-767 
-. 
> 
JOINT RESOLUTION 
Granting the consent and approval of Congress for the State of Maryland, the 
Commonwealth of Virginia, and the District of Columbia to amend the Wash-
ington Metropolitan Area Transit Regulation Compact, and for other purposes. 
Whereas the State of Maryland and the Commonwealth of Virginia 
have entered into a compact, known as the Washington Metropolitan 
Area Transit Regulation Compact, hereinafter called compact, 
creating the Washington Metropolitan Area Transit Commission, 
hereinafter called Commission; and 
Whereas Congress, by Public Law 86-794 (74 Stat. 1031), consented to 
the entry into the compact by the State of Maryland and the Com-
monwealth of Virginia, and authorized and directed the Board of 
Commissioners of the District of Columbia to enter into and execute 
the compact on behalf of the United States for the District of Colum-
bia; and 
Whereas the Commission has recommended specific amendments to the 
compact, to wit: 
(1) To include'within the Washington metropolitan area transit 
district the Dulles International Airport and all cities which lie 
within the metropolitan district; 
(2) To exempt from the Commission's jurisdiction transporta-
tion performed by a carrier whose only transportation is bet\\'een 
points outside the metropolitan district and points inside the metro-
politan district; 
(3) To clarify the Commission's jurisdiction over interstate taxi-
cab operations; 
(4) To provide that the annual reports of the Commission be sub-
mitted on a fiscal year basis; and 
Whereas the State of Maryland and the Commonwealth of Virginia 
have by legislation (chapter 114, Acts of Maryland General Assem-
bly, 1962; and chapter 67, Acts of Virginia General Assembly, 
1962) adopted identical amendments to the compact, to become effec-
tive upon consent of Congress, by which article I, and sections 1 
and 24 of article XII, respectively, of the compact are amended to 
read as follows: 
"ARTICLE I 
"There is hereby created the Washington Metropolitan Area 
Transit District, hereinafter referred to as Metropolitan District, 
which shall embrace the District of Columbia, the cities of Alexan-
dria and Falls Church, the counties of Arlington and Fairfax, and 
political subdivisions of the State of Virginia located within those 
counties and that portion of Loudoun County, Virginia, occupied by 
the Dulles International Airport and the counties of Montgomery 
and Prince Georges, in the State of Maryland and political subdivi-
sions of the State of Maryland located within said counties, and all 
other cities now or hereafter existing in Maryland or Virginia within 
the geographic area bounded by the outer boundaries of the com-
bined area of said counties, cities and airport. 
'ARTICLE XII 
"Transportation Covered 
"1. (a) This Act shall apply to the transportation for hire by 
any carrier of persons between any points in the Metropolitan 
76 STAT.] 
PUBLIC LAW 87-767-OCT. 9, 1962 
765 
District and to the persons engaged in rendering or performing 
such transportation service, except— • 
"(1) transportation by water; 
"(2) transportation by the Federal Government, the signa-
tories hereto, or any political subdivision thereof; 
"(3) transportation by motor vehicles employed solely in 
transporting school children and teachers to or from public or 
private schools; 
"(4) transportation performed in the course of an operation 
over a regular route, between a point in the Metropolitan 
District and a point outside the Metropolitan District, includ-
ing transportation between points on such regular route within 
the Metropolitan District as to interstate and foreign com-
merce, if authorized by certificate of public convenience and 
necessity or permit issued by the Interstate Commerce Com-
mission, and any carrier whose only transportation within the 
Metropolitan District is within this exemption shall not be 
deemed to be a carrier subject to the Compact; provided, how-
ever, if the primary function of a carrier's entire operations is 
the furnishing of mass transportation service within the Wash-
ington Metropolitan Area Transit District, then such operations 
in the Metropolitan District shall be subject to the jurisdiction 
of the Commission; 
"(5) transportation performed by a common carrier by rail-
road subject to Part I of the Interstate Commerce Act, as 
amended. 
ituscTet 
"(b) The provisions of this Title I I shall not apply to transporta- seq, 
tion as specified in this section solely within the Commonwealth of 
Virginia and to the activities of persons engaged in such trans-
portation, nor shall any provision of this Title II be construed to 
infringe the exercise of any power or the discharge of any duties 
conferred or imposed upon the State Corporation Commission of 
the Commonwealth of Virginia by the Virginia Constitution. 
"(c) Notwithstanding the provisions of paragraph (a) of this 
section, this Act shall apply to taxicabs and other vehicles used in 
performing a bona fide taxicab service having a seating capacity 
of eight passengers or less in addition to the driver thereof with 
respect only to (i) the rate or charges for transportation from one 
signatory to another within the confines of the Metropolitan Dis-
trict, and (ii) requirements for minimum insurance coverage. 
"Annual Report of the Commission 
"24. The Commission shall make an annual report for each fiscal 
year ending June thirtieth, to the Governor of Virginia and the 
Governor of Maryland, and to the Board of Commissioners of the 
District of Columbia as soon as practicable after June thirtieth, but 
no later than the 1st day of January of each year, which shall 
contain, in addition to a report of the work performed under this 
Act, such other information and recommendations concerning 
passenger transportation within the Metropolitan District, as the 
Commission deems advisable." 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assembled^ That the consent of Congress 
consent o
f 
is hereby given to the State of Maryland and the Commonwealth Congress. 
of Virginia to effectuate the foregoing amendments to the compact, 
7660 
PUBLIC LAW 87-768-OCT. 9, 1962 
[76 STAT. 
and the Commissioners of the District of Columbia are authorized and 
directed to effectuate said amendments on behalf of the United States 
for the District of Columbia. 
Repeal. 
SEC. 2. Sectiou 5 of Public Law 86-794 (74 Stat. 1050) is repealed. 
SEC. 3. The right of Congress to alter, amend, or repeal this Act is 
hereby expressly reserved. 
Approved October 9, 1962. 
Public Law 87-768 
October 9, 1962 
A N A C T 
[H. R. 8824] 
rpQ modify the application of the personal holding company tax in the case of 
consumer finance companies. 
Be it enacted hy the Senate and House of Representatives 
of the 
Consumer fi- 
United States 
of America 
in Congress 
assembled, 
That section 
TIrsonThoid-' 542(c) (7) of the Internal Revenue Code of 1954 (relating to excep-
ing company tax, 
tious to tiie term "personal holding company") is amended to read as 
exception- 
f n l l n w c i -
68A Stat. 182. 
lOllOWS. 
26 use 542. 
"(7) a lending company, not otherwise excepted by this sub-
section, authorized to engage in and actively and regularly 
engaged in the small loan business (consumer finance business) 
under one or more State statutes providing for the direct regula-
tions of such business, 80 percent or more of the gross income of 
which consists of either or both of the following— > 
"(A) lawful interest, discount, or other authorized charges 
received from loans made to individuals in accordance with 
the provisions of applicable State law, and 
"(B) lawful income received from domestic^ subsidiary 
corporations (of which stock possessing at least 80 percent 
of the voting power of all classes of stock and/of which at 
least 80 percent of each class of the nonvoting stock is owned 
directly by such lending company), which a p themselves 
excepted under this paragraph or paragraph/ (6), (8), or 
(9) of this subsection, 
i 
if at least 60 percent of the gross income is lawful interest, dis-
count, or other authorized charges received from loans made in 
accordance with the provisions of such small loan (consumer 
finance) laws to individuals, each of whose indebtedness to such 
company did not at any time during the taxable year exceed in 
principal amount the limit prescribed for small loans by such law 
(or, if there is no such limit, $1,500), and if the deductions allowed 
68A Stat. 45. 
to such compauy under section 162 (relating to trade or business 
expenses), other than for compensation for personal services 
rendered by shareholders (including members of the shareholder's 
68A Stat. 188. 
family as described in section 544(a) (2)), constitute 15 percent 
or more of its gross income, and the loans to a person, who is a 
shareholder in such company during the taxable year by or for 
whom 10 percent or more m value of its outstanding stock is owned 
directly or indirectly (including, in the case of an individual, 
stock owned by the members of his family as defined in section 
544(a)(2)), outstanding at any time during such year do not 
exceed $5,000 in principal amount;". 
Effective date. 
SEC. 2. The amendment made by the first section of this Act shall 
apply with respect to taxable years beginning after December 31,1961. 
Approved October 9, 1962.