An Act to grant the consent of Congress for the States of Virginia and Maryland and the District of Columbia to amend the Washington Metropolitan Area Transit Regulation Compact to establish an organization empowered to provide transit facilities in the N
PL 89-774 (S.3488), enacted 11/06/1966

1324 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 
STAT. 
November 6, 1966 
[S.3488] 
Public Law 89-774 
AN ACT 
To grant the consent of Congress for the States of Virginia and Maryland and 
tlie District of Columbia to amend the Washington Metropolitan Area Transit 
Regulation Compact to establish an organization empowered to provide transit 
facilities in the National Capital Region and for other purposes and to enact 
said amendment for the District of Columbia. 
40 u s e 651 note. 
40 u s e 681 note. 
40 u s e 71 note. 
D . e . eode 1-
1410 to 1-1416. 
D . e . eode 1-
1410a and note. 
Washington 
Metropolitan 
Area Transit 
Regulation 
Compact, 
amendment. 
Whereas Congress heretofore has declared in the National Capital 
Transportafion Act of 1960 (Public Law 86-669, 74 Stat. 537) and 
in the National Capital Transportation Act of 1965 (Public Law 
89-173, 79 Stat. 663) that a coordinated system of rail rapid transit, 
bus transportation service, and highways is essential in the National 
Capital Region 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 Region, the effective perform-
ance of the functions of the United States Government located within 
the Region, the orderly growth and development of the Region, the 
comfort and convenience of the residents and visitors to the R^ion, 
and the preservation of the beauty and dignity of the Nation's Capi-
tal and that such a system should be developed cooperatively by the 
Federalj State, and local governments of the National Capital Re-
gion^ With the costs of the necessary facilities financed, as far as 
possible, by persons using or benefiting from such facilities and the 
remaining costs shared equitably among the Federal, State, and local 
governments; 
Whereas in furtherance of this policy. Congress, in title I I I of the Na-
tional Capital Transportation Act of 1960, authorized the District 
of Columbia, the Commonwealth of Virginia, and the State of Mary-
land to negotiate a Compact for the establishment of an organiza-
tion, empowered, inter alia, to provide regional transportation fa-
cilities ; 
Whereas, it is the sense of the Congress that the Mass Transit Plan 
authorized by the Compact and this Act shall conform to the fullest 
extent practicable with the Comprehensive Plan for the National 
Capital and the general plan for the development of the National 
Capital Region prepared pursuant to the National Capital Planning 
Act of 1952 (Public Law 82-592, 66 Stat. 781) ; and 
Whereas, the District of Columbia, the Commonwealth of Virginia 
and the State of Maryland, with a representative of the United 
States appointed by the President, have negotiated such a Compact, 
known as the Washington Metropolitan Area Transit Authority 
Compact, which amends the Washington Metropolitan Area Transit 
Regulation Compact, heretofore consented to by the Congress (Pub-
lic Law 86-794, 74 Stat. 1031, as amended by Public Law 87-767, 
76 Stat. 764), by adding thereto a title I I I and said Compact has 
been enacted by Maryland (Ch. 869, Acts of General Assembly 
1965) and in substantially the same language by Virginia (Ch. 2, 
1966 Acts of Assembly): Now, therefore. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the Congress 
hereby consents to, adopts and enacts for the District of Columbia an 
amendment to the Washington Metropolitan Area Transit Regulation 
Compact, for which Congress heretofore has granted its consent (Pub-
lic Law 86-794, 74 Stat. 1031, as amended by Public Law 87-767, 76 
Stat. 764) by adding thereto title III, known as the Washington 
80 STAT.] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1325 
Metropolitan Area Transit Authority Compact (lierein referred to as 
title I I I ) , substantially as follows: 
"TITLE I I I 
''ARTICLE I 
"DEFINrriONS 
"1. As used in this Title, the following words and terms shall have 
the following meanings, unless the context clearly requires a different 
meaning: 
" (a) 'Board' means the Board of Directors of the Washington Met-
ropolitan Area Transit Authority; 
"(b) 'Director' means a member of the Board of Directoi-s of the 
Washington Metropolitan Area Transit Authority; 
"(c) 'Private transit companies' and 'private carriers' means corpo-
rations, 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 Title; 
"(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 
in the Zone, necessary or useful in rendering transit service between 
points 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, tunnels, subways, rolling stock for rail, motor vehicle, 
marine and air transportation, stations, terminals and ports, areas for 
parking and all equipment, fixtures, buildings and structures and 
services incidental to or required in connection with the performance 
of transit service; 
"(g) 'Transit services' means the transportation of persons and 
their packages and baggage by means of transit facilities between 
points within the Zone and includes the transportation of newspapers, 
express and mail between such points but does not include taxicab, 
sightseeing or charter service; and 
"(h) 'WMATC means Washington Metropolitan Area Transit 
Commission. 
"ARTICLE 
I I 
"PURPOSE AND FUNCTIONS 
"Purpose 
"2. The purpose of this Title is to create a regional instrumentality, 
as a common agency of each signatory party, empowered, in the man-
ner hereinafter set forth, (1) to j)lan, develop, finance and cause to be 
operated improved transit facilities, in coordination with transporta-
tion and general development planning for the Zone, as part of a bal-
anced regional system of transportation, utilizing to their best advan-
tage the various modes of transportation, (2) to coordinate the opera-
tion of the public and privately owned or controlled transit facilities, 
to the fullest extent practicable, into a unified regional transit system 
without unnecessary duplicating service, and (3) to serve such other 
regional purposes and to perform such other regional functions as 
the signatories may authorize by appropriate legislation. 
65-300 0-67—86 
1326 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
"ARTICLE 
I I I 
"ORGANIZATION AND AREA 
"Washingtx)n Metropolitan Area Transit Zone 
"3. There is hereby created the Washington Metropolitan Area 
Transit Zone which shall embrace the District of Columbia, the cities 
of Alexandria, Falls Church and Fairfax and the counties of Arling-
ton and Fairfax and political subdivisions of the Commonwealth of 
Virginia located within those counties, and the counties of Mont-
gomery and Prince George's in the State of Maryland and political 
subdivisions of the State of Maryland 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 Authority shall be governed by a Board of six Directors 
consisting of two Directors for each signatory. 
For Virginia, the 
Directors shall be appointed by the Northern Virginia Transportation 
Commission; for the District of Columbia, by the Commissioners of 
the District of Columbia; and for Maryland, by the Washington Sub-
urban 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 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, 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: 
" ' I , 
, 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 whicli 
I was appointed as a director (alternate director) of the Board of 
Washington Metropolitan Area Transit Avithority 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 
compensation but may be reimbursed for necessary expenses incurred 
as an incident to the performance of their duties. 
80 STAT.] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1327 
''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-
Chairman 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 meeting, 
minutes and transactions. 
"Quorum and Actions by the Board 
"8. (a) Four Directors or alternates consisting of at least one Direc-
tor 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 
alternate 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 
resolution. 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 acceleration of any action upon a finding that such 
acceleration is required for the proper and timely performance of its 
functions. 
"Officers 
"9. (a) The officers of the Authority, none of whom shall be mem-
bers of the Board, shall consist of a general manager, a secretary, a 
treasurer, a comptroller and a general counsel and ruch 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 re-
moved by the Board, shall serve at the pleasure of the Board and shall 
[)erform such duties and functions as tlie 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 liired 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 officers as the Board may 
designate shall be appointed and removed by the 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, sliall 
bo responsible for all activities of the Authority. 
"(c) The treasurer shall be the custodian of the funds of the Au-
Uiority, shall keep an account of all receipts and disbursements and 
sliall make payments only upon warrants duly and regularly signed 
by the Chairman or Vice-Chairman of the Board, or other person au-
thorized bjr the Board to do so, and by the secretary or general man-
ager; 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 the Board may be signed by the general man-
ager or by persons designated by him. 
1328 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
"(d) 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 employees specified by the Board 
shall give such bond in such form and amount as the Board may re-
quire, the premium for which shall be paid by the Authority. 
"Conflict of Interests 
"10. (a) No Director, officer or employee shall: 
"(1) be financially interested, either directly or indirectly, in 
any contract, sale, purchase, lease or transfer of real or personal 
property to which the Board or the Authority is a party; 
"(2) in connection with services performed within the scope 
of his official duties, solicit or accept money or any other thing 
of value in addition to the compensation or expenses paid to him 
by the Authority; 
"(3) offer money or any thing of value for or in consideration 
of obtaining an appointment, promotion or privilege in his em-
ployment with the Authority. 
"(b) Any Director, officer or employee who shall willfully violate 
any provision of this section shall, in the discretion of the Board, for-
feit his office or employment. 
"(c) Any contract or agreement made in contravention of this sec-
tion may be declared void by the Board. 
"(d) Nothing in this section shall be construed to abrogate or 
limit the applicability of any federal or state law which may be vio-
lated by any 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; 
"(d) Construct, acquire, own, operate, maintain, control, sell and 
convey real and personal property and any interest therein by con-
tract, purchase, 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 inci-
dental thereto; 
"(e) Receive and accept such payments, appropriations, grants, 
gifts, loans, advances and other fundSj properties and services as may 
be transferred or made available to it by any signatory party, any 
political subdivision 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; 
80 STAT. ] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1329 
"(f) Enter into and perform contracts, leases and agreements with 
any person, firm or coiporation 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 sei-vice; 
"(g) 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 qualifica-
tion, appointment, removal, term, tenure, compensation, pension and 
i-etirement rights of its officers and employees without regard to the 
1 a ws 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 
retirement 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 ser\dce 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 Au-
tliority is concerned and, in connection therewith, subpena witnesses, 
papers, records and documents; or delegate such authority to any 
officer. 
Each director may administer oaths or affirmations in any 
proceeding or investigation; 
" (1) Make or participate in studies of all phases and forms of trans-
portation, including transportation vehicle research and development 
techniques and methods for determining traffic projections, demand 
motivations, and fiscal research and publicize and make available the 
results of such studies and other information relating to transporta-
tion; and 
" (m) Exercise, subject to the limitations and restrictions herein im-
posed, all powers reasonably necessary or essential to the declared ob-
jects 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, plat-
forms, parking facilities and the character and nature thereof; (2) the 
design and location of such facilities; (3) whether such facilities are 
to be constructed or acquired by lease, purchase or condemnation; (4) 
a timetable 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 specify 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 revi-
sion thereof, the Board shall make full utilization of all data, studies, 
reports and information available from the National Capital Trans-
1330 
PUBLIC LAW 89-77 4-NOV. 6, 1966 
[80 STAT. 
portation Agency and from any other agencies of the federal govern-
ment, and from signatories and the political subdivisions thereof. 
"Planning Process 
"14. (a) The mass transit plan, and any revisions, alterations or 
amendments thereof, shall be coordinated, through the procedures 
hereinafter set forth, with 
"(1) other plans and programs affecting transportation in the 
Zone in order to achieve a balanced system of transportation, 
utilizing each mode 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 
embraced 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 ap-
pointed him to the Board. 
To provide a framework for regional 
participation in the planning process, the Board shall create technical 
committees concerned with planning and collection and analyses 
of data relative to decision-making in the transportation planning 
process and the Commissioners of the District of Columbia, the com-
ponent governments of the Northern Virginia Transportation District 
and the Washington Suburban Transit District shall appoint represen-
tatives to such technical committees and otherwise cooperate with 
the Board in the formulation of a mass transit plan, or in revisions, 
alterations or amendments thereof. 
"(c) The Board, in the preparation, revision, alteration or amend-
ment of a mass transit plan, shall 
" (1) consider data with respect to current and prospective con-
ditions in the Zone, including, without limitation, land use, popu-
lation, economic factors affecting development plans, goals or 
objectives for the development of the Zone and the separate politi-
cal subdivisions, transit demands to be generated by such devel-
opment, 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 amenities 
and aesthetics and financial resources; 
" (2) cooperate with and participate in any continuous, compre-
hensive transportation planning process cooperatively established 
by the highway 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 
"(3) to the extent not inconsistent w^ith or duplicative of the 
planning process specified in subparagraph (2) of this paragraph 
(c), cooperate with the National Capital Planning Commission, 
the National Capital Regional Planning Council, the Washington 
Metropolitan Council of Governments, the Washington Metro-
politan Area Transit Commission, the highway agencies of the 
Signatories, the Maryland-National Capital Park and Planning 
Commission, the Northern Virginia Regional Planning and Eco-
nomic Development Commission, the Maryland State Planning 
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 de-
cisionmaking in the transportation planning process. 
80 STAT.] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1331 
"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, 
revision 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 North-
ern 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 Washin^on Metropolitan Council of Governments; 
" (6) the National Capital Planning Commission; 
"(7) The National Capital Regional Planning Council; 
"(8) the Maryland-National Capital Park and Planning Com-
mission; 
"(9) the Northern Virginia Regional Planning and Economic 
Development 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 employees 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 oflB^ce of the Board and shall be available for public in-
spection. 
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 pro-
posed plan, alteration, 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, amendment or revision which it deems 
appropriate and such changes may be made without further hearing. 
"ARTICLE 
VII 
"FINANCING 
"Policy 
"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 Na-
tional Capital Transportation Act of 1960 (74 Stat. 537), it is hereby 
^o use 664. 
declared to be the policy of this Title that, as far as possible, the pay-
ment of all costs shall be borne by the persons using or benefiting from 
the Authority's facilities and services and any remaining costs shall be 
equitably shared among the federal, District of Columbia and partici-
pating 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 
1332 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
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 con-
structed or acquired, the cost thereof, the principal amount of revenue 
bonds, equipment trust certificates, and other evidences of debt pro-
posed to be issued, the principal terms and provisions of all loans and 
underlying agreements and indentures, estimated operating expenses 
and revenues, and the proposed allocation among the federal. District 
of Columbia, and participating local governments of the remaining 
costs and deficits, if any, and such other information as the Commis-
sion 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 
obligation on any government and such obligations shall be created 
only as provided in Section 18 of this Article VII. 
"Commitments for Financial Participation 
"18. (a) Commitments on behalf of the portion of the Zone located 
in Virginia shall be by contract or agreement by the Authority with 
the Northern Virginia Transportation District, or its component gov-
ernments, as authorized in the Transportation District Act of 1964 
(Ch. 631,1964 Acts 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 altera-
tion, revision or amendment thereof, and for meeting expenses and 
obligations in the operation of such facilities. 
No such contract or 
agreement, however, shall be entered into by the Authority with the 
Northern Virginia Transportation District unless said District has 
entered into the contracts or agreements with its member govern-
ments, 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 en-
forceable by the Authority in accordance with the provisions of Sec-
tion 2, Article 5 of said Act, and such contracts or agreements are ac-
ceptable to the Board. 
The General Assembly of Virginia hereby au-
thorizes and designates the Authority as the agency to plan for and 
provide transit facilities and services for the area of Virginia encom-
passed within the Zone within the contemplation of Article 1, Section 
3(c) of said Act. 
"(b) Commitments on behalf of the portion of the Zone located 
in Maryland shall be by contract or agreement by the Authority with 
the Washington Suburban Transit District, pursuant to which the 
Authority undertakes to provide transit facilities and service in con-
sideration for the agreement by said District 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 in any 
alteration, revision 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 
government, the commitment or obligation to render financial assist-
ance shall be created by appropriation or in such other manner, or by 
such other legislation, as the Congress shall determine. 
If prior to 
making such commitment by or on behalf of the District of Colum-
bia, legislation is enacted by the Congress granting the governing 
body of the District of Columbia plenary power to create obliga-
tions and levy taxes, the commitment by the District of Columbia 
shall be by contract or agreement between the governing body of 
80 STAT.] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1333 
the District of Columbia and the Authority, pursuant to which the 
Authority undertakes, subject to the provisions of Section 20 liereof, 
to provide transit facilities and service in consideration for the under-
taking by the District of Columbia 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 in any alteration, 
revision or amendment thereof, and for meeting expenses and obliga-
tions incurred in the operation of such facilities. 
"Administrative Expenses 
"19. Prior to the time the Authority has receipts from appropria-
tions 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 pro-
vided through grants by the federal government, be borne by the 
District of Columbia, by the Washington Suburban Transit District 
and the component governments of the Northern Virginia Transporta-
tion District. 
Such expenses shall be allocated among such govern-
ments 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 alloca-
tion upon estimates of population acceptable to the Board. 
The allo-
cations 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, 
Maryland or Virginia, or any political subdivision or agency thereof, 
any transit and related facilities, including real and personal prop-
erty and all other assets, located within the Zone, whether in opera-
tion or under construction. Such acquisition shall be made upon such 
terms and conditions as may be agreed upon and subject to such au-
thorization or approval 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 Dis-
trict, the Northern Virginia Transportation District, or any compo-
nent 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 primary obligor, endorser or guarantor on any outstanding revenue 
bonds, equipment trust certificates or other form of indebtedness au-
thorized in this Act issued by such predecessor agency or agencies and, 
in connection therewith, to become a party to, and assume the obliga-
tions of, any indenture or loan agreement underlying or issued in con-
nection 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 
1334 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
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 a rate of interest not to exceed six percent 
per annum. 
The signatories and any such political subdivision or 
agency may, in its discretion, make such loans from any available 
money. 
"Funding 
"22. The Board shall not construct or acquire any of the transit 
facilities specified in a mass transit plan adopted pursuant to the pro-
visions of Article VI of this Title, or in any alteration, revision or 
amendment thereof, nor make any commitments or incur any obliga-
tions 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 undertake 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 bal-
anced 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 
"25. (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 government, the District of Columbia, the Washington Subur-
ban Transit District and of the component governments of the North-
ern Virginia Transportation Commission at such time and in such 
manner as may be required under their respective budgetary pro-
cedures. 
"(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 gov-
ernments of the Northern Virginia Transportation District, deter-
mined in accordance with the commitments made pursuant to Article 
VII, Section 18 of this Title, to balance each of said budgets. 
"Payments 
"26. Subject to such review and approval as may be required by 
their budgetary or other applicable processes, the federal government, 
the Government of the District of Columbia, the Washington Sub-
80 STAT.] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1335 
urban Transit District and the component governments of the North-
ern Virginia Transportation 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 
I X 
"REVENUE BONDS 
"Borrowing Power 
"27. The Authority may borrow money for any of the purposes of 
this Title, may issue its negotiable bonds and other evidences of in-
debtedness in respect thereto and msij mortgage or pledge its prop-
erties, revenues and contracts as security therefor. 
"All such bonds and evidences of indebtedness shall be payable 
solely out of the properties and revenues of the Authority. 
The bonds 
and other obligations of the Authority, except as may be otherwise 
provided in the indenture under which they were issued, shall be 
direct and general obligations of the Authority and the full faith and 
credit of the Authority are hereby pledged for the prompt payment 
of the debt service thereon and for the fulfillment of all other under-
takings of the Authority assumed by it to or for the benefit of the 
holders thereof. 
"Funds and Expenses 
"28. The purposes of this Title shall include, without limitation, all 
costs of any project or facility or any part thereof, including interest 
during a period of construction and for a period not to exceed two 
years thereafter and any incidental expenses (legal, engineering, fiscal, 
financial, consultant and other expenses) connected with issuing and 
disposing of the bonds; all amounts required for the creation of an 
operating fund, construction fund, reserve fund, sinking fund, or other 
special fund; all other expenses connected with administration, the 
planning, design, acquisition, construction, completion, improvement 
or reconstruction of any facility or any part thereof; and reimburse-
ment of advances by the Board 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 sig-
natory party, political subdivision or agency thereof,, or to impose 
any obligation for payment of the bonds upon any signatory party, 
political subdivision or agency thereof, but may pledge the contracts 
of such governments and agencies; provided, however, that tlie bonds 
may be underwritten in whole or in part as to principal and interest 
by the United States, or by any political subdivision or agency of any 
signatory; provided, further, that any bonds underwritten in whole or 
in part as to principal and interest by the ITnited States shall not 
be issued without approval of the Secretary of the Treasury. 
Neither 
the Directors nor any person executing the bonds shall be liable per-
sonally on the bonds of the Authority or be subject to any personal 
liability or accountability by reason of the issuance thereof. 
"Funding and Refunding 
"30. Whenever the Board deems it expedient, it may fund and 
refund the bonds and other obligations oi the Authority whether or 
1336 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
not such bonds and obligations have matured. 
It may provide for 
the issuance, sale or exchange of refunding bonds for the purpose of 
redeeming or retiring any bonds (including the payment of any pre-
mium, duplicate interest or cash adjustment required in connection 
therewith) issued by the Authority or issued by any other issuing body, 
the proceeds of the sale of which have been applied to any facility ac-
quired by the Authority or which are payable out of the revenues of 
any facility acquired by the Authority. 
Bonds may be issued partly 
to refund bonds and other obligations then outstanding, and partly 
for any other purpose of the Authority. 
All provisions of this Title 
applicable to the issuance of bonds are applicable to refunding bonds 
and to the issuance, sale or exchange thereof. 
"Bonds; Authorization Generally 
"31. Bonds and other indebtedness of the Authority shall be author-
ized by resolution of the Board. 
The validity of the authorization 
and issuance of any bonds by the Authority shall not be dependent 
upon nor affected in any way by: (i) the disposition of bond proceeds 
by the Board or by contract, commitment or action taken with respect 
to such proceeds; or (ii) the failure to complete any part of the project 
for which bonds are authorized to be issued. 
The Authority may issue 
bonds in one or more series and may provide for one or more consoli-
dated bond issues, in such principal amounts and with such terms and 
provisions as the Board may deem necessary. 
The bonds may be se-
cured 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 maturities 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 determine. 
"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, matu-
rities, interest rate, or rates, denominations, form, registration, trans-
fer, interchange and other provisions of the bonds and coupons and 
the terms and conditions upon which the same shall be executed, is-
sued, secured, sold, paid, redeemed, funded and refunded. The resolu-
tion 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 not inconsistent with the provisions of this Title, 
other than any restriction 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, in-
cluding without limitation 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, appli-
cation and disposition of such revenues, of the proceeds of the bonds, 
and of any other moneys or contracts of the Authority; the operation, 
maintenance, repair and reconstruction of the facilities and the 
amounts which may be expended therefor; the salej lease or other dis-
position of the facilities; the insuring of the facilities and of the reve-
nues 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 
80 STAT.] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1337 
default by the Authority or otherwise; and the modification 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 bonds or coupons, whether the coupons are attached to or detached 
from the 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 
its own date and in the event any authorized issue is divided into two 
or more series or divisions, the maximum maturity date herein author-
ized shall be calculated from the date on the face of each bond sepa-
rately, irrespective of the fact that different dates may be prescribed 
for the bonds of each separate series or division of any authorized 
issue. 
"Tax Exemption 
"34. All bonds and all other evidences of debt issued by the Author-
ity under the provisions of this Title and the interest thereon shall 
at all times be free and exempt from all taxation by or under authority 
of any signatory parties, except for transfer, inheritance and estate 
taxes. 
"Interest 
"35. Bonds shall bear interest at a rate of not to exceed six percent 
per annum, payable annually or semiannually. 
"Place of Payment 
"36. The Board may provide for the payment of the principal and 
interest of bonds at any place or places within or without the signa-
tory states, and in any specified lawful coin or currency of the United 
States of America. 
"Execution 
"37. The Board may provide for the execution and authentication 
of bonds by the manual, lithographed or printed facsimile signature 
of members of the Board, and by additional authentication by a trustee 
or fiscal agent appointed by the Board; provided, however, that one 
of such signatures shall be manual. 
If any of the members whose 
signatures or countersignatures appear upon the bonds or coupons 
cease to be members before the delivery of the bonds or coupons, their 
signatures or countersignatures are nevertheless valid and of the same 
force and effect as if the members had remained in office until the 
delivery of the bonds and coupons. 
"Holding Own Bonds 
"38. The Board shall have power out of any funds available therefor 
to purchase its bonds and may hold, cancel or resell such bonds. 
"Sale 
"39. The Board may fix terms and conditions for the sale or other 
disposition of any authorized issue of bonds. The Board may sell 
1338 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
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 of more than six j^ercent per annum pay-
able semiannually, according to standard tables of bond values. All 
bonds issued and sold pursuant to this Title may be sold in such man-
ner, either at public or private sale, as the Board shall determine. 
"Negotiability 
"40. All bonds issued under tlie provisions of this Title are nego-
tiable instruments. 
"Bonds Eligible for Investment and Deposit 
"41. Bonds issued under the provisions of this Title are hereby 
made securities in which all public officers and public agencies of the 
signatories and their political subdivisions and all banks, trust com-
panies, savings and loan associations, investment companies and others 
carrying on a banking business, all insurance companies and insurance 
associations and others carrying on an insurance business, all adminis-
trators, executors, guardians, trustees and other fiduciaries, and all 
other persons may legally and properly invest funds, including capital 
in their control or belonging to them. Such bonds are hereby made 
securities which may properly and legally be deposited with and 
received by any officer of any signatory, or of any agency or political 
subdivision of any signatory, for any purpose for w^hich the deposit 
of bonds or other obligations of such signatory is now or may hereafter 
be authorized by law. 
"Validation Proceedings 
"42. Prior to the issuance of any bonds, the Board may institute 
a special proceeding to determine the legality of proceedings to issue 
the bonds and their validity under the laws of any of the signatory 
parties. Such proceeding shall be instituted and prosecuted in rem and 
the final judgment rendered therein shall be conclusive against all 
persons whomsoever and against each of the signatory parties. 
"Recording 
"43. No indenture need be recorded or filed in any public office, other 
than the office of the Board. The pledge of revenues provided in any 
indenture shall take effect forthwith as provided therein and irrespec-
tive of the date of receipt of such revenues by the Board of the in-
denture trustee. 
Such pledge shall be effective as provided in the 
indenture without 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 
provided 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 re-
80 STAT. ] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1339 
spect to the payment therefrom of expenses for other purposes in-
cluding administration, operation, maintenance, improvements or ex-
tensions of the facilities or other purposes 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 con-
nection with the acquisition, construction, operation, maintenance, re-
pair, reconstruction or insurance 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 trustee 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 exercise or prosecution 
of any other rights or remedies available to the holders 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 certifi-
cates in such manner as it may determine to be for the best interests of 
the Authority. 
Each vehicle covered by an equipment trust certificate 
shall have the name of the owner or lessor plainly marked upon both 
sides thereof, followed by the words 'Owner and Lessor'. 
"Payments 
"47. All monies required to be paid by the Authority under the 
provisions of such agreements, leases and equipment trust certificates 
shall be payable solely from the revenue to be derived from the opera-
tion of the transit system or from such grants, loans, appropriations or 
other revenues, as may be available to the Board under the provisions 
of this Title. Payment for such facilities or equipment, or rentals 
thereof, may be made in installments, and the deferred installments 
may be evidenced by equipment trust certificates as aforesaid, and title 
to such facilities or equipment may not vest in the Authority until the 
equipment trust certificates are paid. 
"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 
1340 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
trust company, duly authorized to transact business in anj^^ of the 
signatory States, or to the Housing and Home Finance Administrator, 
as trustee, lessor or vendor, for the benefit and security of the equij)-
ment trust certificates and may direct the trustee to deliver the facili-
ties and equipment to one or more designated officers of the Board and 
may authorize 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 acknowledgements of deeds 
and in the form required for acknowledgement of deeds and such 
agreements, leases, and equipment trust certificates shall be authorized 
b j resolution of the Board and shall contain such covenants, condi-
tions and provisions as may be deemed necessary or appropriate to 
insure the payment of the equipment trust certificates from the reve-
nues 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 
provisions 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 per-
mitted to be filed shall be governed by the Laws of the District of 
Columbia. 
"ARTICLE 
X I 
"OPERATION or 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 perform-
ance of transit service with such facilities by contract or contracts with 
private transit companies, private railroads, or other persons. 
Any 
facilities and j)roperties 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. AH 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; 
"(a) specify the services and functions to be performed by the 
Contractor; 
80 STAT.] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1341 
"(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 
employees 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 Authority and assume the pension obligations of any such 
transit company; 
"(d) require the Contractor to complj^ 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, se-
curities or interests in any Contractorj 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, 
securities 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 se-
lected by the Board and for such other audits, examinations and in-
vestigations 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 
"(i) 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 
"53. 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 bene-
fits to the Authority and to the estimated costs the Authority would 
incur in directly performing the functions and duties delegated under 
the operating contract; and provided, further, that no such contract 
shall create any right in the Contractor (1) to make or change any rate 
or fare or alter or change the service specified in the contract to be 
provided or (2) to seek judicial relief by any form of original action, 
review or other proceedings from any rate or fare or service prescribed 
by the Board. 
Any assertion, or attempted assertion, by the Contrac-
tor of the right to make or change any rate or fare or service prescribed 
by the Board shall constitute cause for termination of the operating 
contract. 
The operating contract may provide incentives for efficient 
and economical management. 
"Selection of Contractor 
"54. The Board shall enter into an operating contract only after 
formal advertisement and negotiations with all interested and quali-
65-300 0-67—87 
1342 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
fied 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 obliga-
tions of any operating contract which the transferor agency may 
have entered into. 
"ARTICLE 
X I I 
"COORDINATION OF PRIVATE AND PUBLIC 
FACILITIES 
"Declaration of Policy 
"55. It is hereby declared that the interest of the public in efficient 
and economical transit service and in the financial well-being of the 
Authority and of the private transit companies requires that the public 
and private segments of the regional transit system be operated, to the 
fullest extent possible, as a coordinated system without unnecessary 
duplicating service. 
"Implementation of Policy 
"56. In order to carry out the legislative policy set forth in Section 
55 of this Article X I I 
"(a) The Authority— 
"(1) except as herein provided, shall not, directly or through a 
Contractor, perform transit service by bus or similar motor 
vehicles ; 
"(2) shall, in cooperation with the private carriers and 
WMATC, coordinate to the fullest extent practicable, the sched-
ules for service performed by its facilities with the schedules 
for service performed by private carriers; and 
"(3) shall enter into agreements with the private carriers to 
establish and maintain, subject to approval by WMATC, through 
routes and joint fares and provide for the division thereof, or, in 
the absence of such agreements, establish and maintain through 
routes and joint fares in accordance with orders issued by 
WMATC directed to the private carriers when the terms and 
conditions for such through service and joint fares are acceptable 
to it. 
" (b) The \\TVIATC, upon application, complaint, or upon its own 
motion, shall— 
"(1) direct private carriers to coordinate their schedules for 
service with the schedules for service performed by facilities owned 
or controlled by the Authority; 
"(2) direct private carriers to improve or extend any existing 
services or provide additional service over additional routes; 
" (3) authorize a private carrier, pursuant to agreement between 
said carrier and the Authority, to establish and maintain through 
routes and joint fares for transportation to be rendered with fa-
cilities owned or controlled by the Authority if, after hearing held 
upon reasonable notice, WMATC finds that such through routes 
and joint fares are required by the public interest; and 
" (4) in the absence of such an agreement with the Authority, di-
rect a private carrier to establish and maintain through routes and 
joint fares with the Authority, if, after hearing held upon rea-
sonable notice, WMATC finds that such through service and joint 
80 STAT. ] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1343 
fares are required by the public interest; provided, however, that 
no such order, rule or regulation of WMATC shall be construed 
to require the Authority to establish and maintain any through 
route and joint fare. 
"(c) WMATC shall not authorize or require a private carrier to 
render any service, including the establishment or continuation of a 
joint fare for a through route service with the Authority which is 
based on a division thereof betw^een the Authority and private carrier 
which does not provide a reasonable return to the private carrier, 
unless the carrier is currently earning a reasonable return on its 
operation as a whole in performing transportation subject to the 
jurisdiction of WMATC. 
In determining the issue of reasonable 
return, WMATC shall take into account any income attributable to 
the carrier, or to any corporation, firm or association owned in whole 
or in part by the carrier, from the Authority whether by way of pay-
ment for services or otherwise. 
"(d) If the WMATC is unable, through the exercise of its regula-
tory 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 Au-
thority may in the situations specified in paragraph (b) hereof, cause 
such transit service to be rendered by its Contractor by bus or other 
motor vehicle, as it shall deem necessary to effectuate the policy set 
forth in Section 55 hereof. 
In any such situation, the Authority, in 
order to encourage private carriers to render bus service to the fullest 
extent practicable, may, pursuant to agreement, make reasonable sub-
sidy 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 Au-
thority arising out of acts done or actions taken by the Authority 
hereunder. 
In the event any court of competent jurisdiction shall 
determine that the Authority has unlawfully infringed any rights of 
any private carrier or otherwise caused or permitted any private 
carrier to suffer legally cognizable injury, damages or harm and shall 
award a judgment therefor, such judgment shall constitute a lien 
against any and all of the assets and properties of the Authority. 
"Financial Assistance to Private Carriers 
"58. (a) The Board may accept grants from and enter into loan 
agreements with the Housing and Home Finance Administrator, pur-
suant to the provisions of the Urban Mass Transportation Act of 1964 
(78 Stat. 302), or with any successor agency or under any law of note.^^^ ^^''^ 
similar purport, for the purpose of rendering financial assistance to 
private carriers. 
"(b) An application by the Board for any such grant or loan shall 
be based on and supported by a report from WMATC setting forth 
for each private carrier to be assisted (1) the equipment and facili-
ties to be acquired, constructed, reconstructed, or improved, (2) the 
service proposed to be rendered by such equipment and facilities, (3) 
the improvement in service expected from such facilities and equip-
ment, (4) how the use of such facilities and equipment will be coordi-
nated with tlie transit facilities owned by the Authority, (5) the 
1344 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
ability of the affected private carrier to repay any such loans or grants 
and (6) recommend terms for any such loans or grants. 
"(c) Any equipment or facilities acquired, constructed, recon-
structed or improved with the proceeds of such grants or loans shall 
be owned by the Authority and may be made available to private 
carriers only by lease or other agreement which contain provisions 
acceptable to the Housing and Home Finance Administrator assuring 
that the Authority will have satisfactory continuing control over the 
use of such facilities and equipment. 
"ARTICLE X I I I 
"JURISDICTION; RATES AND SERVICE 
"Washington Metropolitan Area Transit Commission 
"59. Except as provided herein, this Title shall not affect the func-
tions and jurisdiction of WMATC, as granted by Titles I and I I 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, 
shall be subject to the sole and exclusive jurisdiction of the Board and, 
notwithstanding any other provision in this Compact contained, 
WMATC shall have no authority with respect thereto, or with respect 
to any contractor in connection with the operation by it of transit 
facilities 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 ade-
quate service at reasonable fares, the rates and fares and service shall 
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 
tei-ms 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 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 
est-ablish or abandon any service except after holding a public hearing 
witli respect thereto. 
80 STAT.] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1345 
"(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 re-
quested 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 hear-
ings. The notice shall be given by publication in a newspaper of daily 
circulation 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 
submitted by WMATC, in connection with a matter set for hearing, 
gursuant to the provisions of Section 63 of this Article XIII, the 
loard 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 
facilities 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 ajffect 
the operation of the publicly and privately owned or controlled transit 
facilities as a coordinated regional transit system and any matter for 
which the Board has called a hearing, pursuant to Section 62 of this 
Article X I I I , 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 con-
sider, without limitation, the probable effect of the matter or pro-
posal upon the operation of the publicly and privately owned or con-
trolled transit facilities as a coordinated regional system, passenger 
movements, fare structures, service and the impact on the revenues of 
both the public and private facilities. 
1346 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
"ARTICLE 
XIV 
"LABOR POLICY 
"Construction 
"64. The Board shall take such action as may be necessary to insure 
that all laborers and mechanics employed by contractors or subcon-
tractors in 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 determined by the Secretary of Labor in accordance with 
49 Stat. 1011. 
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 eight hours in any workday or forty hours in any 
workweek, as the case may be. A provision stating the minimum wages 
thus determined and the 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 shall be deemed to be a contract 
of the character specified in Section 103 of the Contract Work Hours 
40 use 327note, gtaudards Act (76 Stat. 357), as now 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 Number 14 of 1950 (15 F.R. 3176, 64 Stat. 
1267, 5 U.S.C. 133Z-15), and section 2 of the Act of June 13, 1934, as 
amended (48 Stat. 948, as amended; 40 U.S.C. 276 (c)). 
The require-
ments of this section shall also be applicable w^ith respect to the em-
ployment of laborers and mechanics in the construction, alteration or 
repair, including painting and decorating, of the transit facilities 
owned or controlled by the Authority where such activities are per-
formed by a Contractor pursuant to agreement with the operator of 
such facilities. 
"Equipment and Supplies 
"65. Contracts for the manufacture or furnishing of materials, 
supplies, 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 facilities 
owned or controlled by the Authority that the provisions of section 
10(c) of the Urban Mass Transportation Act of 1964 (49 U.S.C. 
AIL^^^^JIS^' 
1609(c)) shall be applicable to any contract or other arrangement for 
" ^'^' 
' 
the operation of such facilities. 
"ARTICLE 
XV 
"RELOCATION ASSISTANCE 
"Relocation Program and Payments 
49 use 1606. 
«e7 Section 7 of the Urban Mass Transportation Act of 1964, and 
as the same may from time to time be amended, and all regulations 
promulgated thereunder, are hereby made applicable to individuals, 
63 Stat. 108. 
40 u s e 276c. 
49 Stat. 2036. 
80 STAT.] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1347 
families, business concerns and nonprofit organizations displaced from 
real property by actions of the Authority without regard to whether 
financial assistance is sought by or extended to the Authority under any 
provision of that Act; provided, however, that in the event real prop-
erty is acquired for the Authority by an agency of the federal govern-
ment, or by a State or local agency or instrumentality, the Authority 
is authorized to reimburse the acquiring agency for relocation pay-
ments made by it, 
"Relocation of Public or Public Utility Facilities 
''68. Notwithstanding the provisions of Section 67 of this article 
XV, any highway or other public facility or any facilities of a public 
utility company which will be dislocated by reason of a project deemed 
necessary by the Board to effectuate the authorized purposes of this 
Title shall be relocated if such facilities are devoted to a public use, and 
the reasonable cost of relocation, if substitute facilities are necessary, 
shall be 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 administra-
tion of such funds as may be required. The funds shall be disbursed 
in accordance with rules established by the Board and all payments 
from any fund shall be reported to the Board. Monies in such funds 
and other monies of the Authority shall be deposited, as directed by 
the Board, in any state or national bank located in the Zone having 
a total paid-in capital of at least one million dollars ($1,000,000). 
The trust department of any such state or national bank may be desig-
nated as a depositary to receive any securities acquired or owned by the 
Authority. 
The restriction with respect to paid-in capital may be 
waived for any such bank which agrees to pledge federal securities to 
protect the funds and securities of the Authority in such amounts 
and pursuant to such arrangements as may be acceptable to the Board. 
"(b) Any monies of the Authority may, in the discretion of the 
Board and subject to any agreement or covenant between the Au-
thority and the holders of any of its obligations limiting or restricting 
classes of investments, be invested in bonds or other obligations of, or 
guaranteed as to interest and principal by, the United States, Mary-
land, Virginia or the political subdivisions or agencies thereof. 
"Annual Independent Audit 
"70. (a) As soon as practical after the closing of the fiscal year, an 
audit shall be made of the financial accounts of the Authority. 
The 
audit shall be made by qualified certified public accountants selected 
by the Board, who shall have no personal interest direct or indirect in 
the financial affairs of the Authority or any of its officers or employees. 
The report of audit shall be prepared in accordance with generally 
accepted auditing principles and shall be filed with the Chairman and 
other officers as the Board shall direct. 
Copies of the report shall be 
distributed to each Director, to the Congress, to the Board of Com-
missioners of the District of Columbia, to the Governors of Virginia 
and Maryland, to the Washington Suburban Transit Commission, to 
1348 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
the Kortliern Virginia Transportation Commission and to the govern-
ing bodies of the political subdivisions located Avithin 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 
: j t 
"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 
public reports and informational materials as it may deem necessary or 
desirable. 
, 
"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 requirements of any agreement arising out of issuance of bonds or 
other obligations by the Authority. 
"Purchasing 
"73. Contracts for the construction, reconstruction or improvement 
of any facility when the expenditure required exceeds ten thousand 
dollars ($10,000^ and contracts for the purchase of supplies, equip-
ment and materials w^hen the expenditure required exceeds two thou-
sand five hundred dollars ($2,500) shall be advertised and let upon 
sealed bids to the lowest responsible bidder. 
Notice requesting such 
bids shall be published in a manner reasonably likely to attract pro-
spective 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 after rejecting bids the Board deter-
mines 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 opportunity to negotiate 
a price and may proceed to purchase the supplies, equipment and ma-
terials in the open market at a negotiated price which is lower than 
the lowest rejected bid of a responsible bidder, without further observ-
ance 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 
80 STAT.] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1349 
required by this section. 
The Board may suspend and waive the pro-
visions of this section requiring competitive bids whenever: 
"(a) the purchase is to be made from or the contract is to be made 
with the federal or any State government or any agency or political 
subdivision thereof or pursuant to any open end bulk purchase con-
tract 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 locatej 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 high-
way department or other affected agency of a signatory party may re-
quire ; provided, however, 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 park-
ways and park lands, but may construct or operate such facilities in a 
subway under such parkways 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 regula-
tions of the signatories and political subdivisions and agencies thereof 
with respect to use of streets, highways and all other vehicular facili-
ties, traffic control and regulation, zoning, signs and buildings. 
"Police 
"76. The Board is authorized to employ watchmen, guards and in-
vestigators as it may deem necessary for the protection of its proper-
ties, 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 jurisdiction of or performance of duties by the existing police 
and law enforcement agencies. 
; 
"Exemption from Regulation 
"77. Except as otherwise provided in this Title, any transit serv-
ice 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 Author-
ity, shall, in connection with the performance of such service, be ex-
empt from all laws, rules, regulations and orders of the signatories 
1350 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
and of the United States otherwise applicable to such transit service 
and persons, except that laws, rules, regulations and orders relating 
to inspection of equipment and facilities, safety and testing shall re-
main in force and effect; provided, however, that the Board may pro-
mulgate regulations for the safety of the public and employees not 
inconsistent with the applicable laws, rules, regulations or orders of the 
signatories and of the United States. 
. 
. ,„, 
........j 
"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 per-
forming an essential governmental function, inchidin^, without limita-
tion, proprietary, governmental and other functions, m 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, pos-
session or supervision or upon its activities in the operation and main-
tenance 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, without limitation, all motor vehicle 
1 icense fees, sales taxes and motor fuel 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 
facilities 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 agent committed in 
the conduct of any proprietary function, m accordance with the law of 
the applicable signatory (including rules on conflict of laws), but shall 
not be liable for any torts occurring in the performance of a govern-
mental function. 
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 tliis 
Title shall be construed as a waiver by the District of Columbia, Mary-
land, 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 juris-
diction, 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 removable to the appropriate United States District Court 
in the manner provided by Act of June 25, 1948, as amended (28 
63llT\oT'' 
U.S.C.1446). 
06 btat. 101. 
' 
///->( 
1 
,• 
Condemnation 
"82. (a) The Authority shall have the power to acquire by con-
demnation, whenever in its opinion it is necessary or advantageous 
to the Authority to do so, any real or personal property, or any in-
80 STAT.] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1351 
terest therein, necessary or useful for the transit system authorized 
herein, except property owned by the United States, by a signatory, 
or any political subdivision thereof, or by a private transit com-
pany. 
"(b) Proceedings for the condemnation of property in the Dis-
trict of Columbia shall be instituted and maintained under the Act 
of December 23, 1963 (77 Stat. 577-581, D. C. Code 1961, Supp. IV, 
Sections 1351-1368). Proceedings for the condemnation of property 
located elsewhere within the Zone shall be instituted and mamtained, 
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, 62 stat. gse. 
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 proceedings shall be in accordance with 
the provisions of the State law of the signatory in which the prop-
erty is located governing condemnation by the highway agency of 
such state. Whenever the words 'real property,' 'realty,' 'land,' 'ease-
ment,' 'right-of-way,' or words of similar meaning 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 hereunder. 
" (c) Any award or compensation for the taking of property pur-
suant 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 
"83. (a) When advised in writing by the Northern Virginia Trans-
portation Commission or the Washington Suburban Transit Com-
mission that the geographical area embraced therein has been en-
larged, the Board, upon such terms and conditions as it may deem 
appropriate, shall by resolution enlarge the Zone to embrace the addi-
tional area. 
"(b) The duration of this Title shall be perpetual but any signa-
tory thereto may withdraw therefrom upon two years' written notice 
to the Board. 
"(c) The withdrawal of any signatory shall not relieve such sig-
natory, any transportation district, county or city or other political 
subdivision thereof from anj 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 
signatory 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 s^ny signatory ^arty, political subdivision 
or agency thereof is held invalid, the constitutionality of the remain-
der of this Title or any such agreement and the applicability thereof 
to any other signatory party, political subdivision or agency thereof 
1352 
PUBLIC LAW 89-774-NOV. 6, 1966 
[80 STAT. 
National Capital 
Transportation 
Agency. 
Transfer of 
functions; ef-
fective date. 
79 Stat. 663. 
40USC 681 note. 
74 Stat. 544. 
40 u s e 671. 
Transfer of 
property, rec-
ords, etc. 
79 Stat. 665. 
40 u s e 684. 
Functions and 
duties pending 
transfer. 
or circumstance 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 dupli-
cate 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 become 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 execu-
tion of the Title by the Governors of Maryland and Virginia and the 
Commissioners of the District of Columbia." 
Section 2. The Commissioners of the District of (^olumbia are au-
thorized and directed to enter into and execute an amendment to the 
Compact substantially as set forth above with the States of Virginia 
and Maryland and are further authorized and directed to carry out 
and effectuate the terms and provisions of said Title III, and there are 
hereby authorized to be appropriated out of District of Columbia 
funds such amounts as are necessary to carry out the obligations of the 
District of Columbia in accordance with the terms of the said Title III. 
Section 3. (a) To assure uninterrupted progress in the development 
of the facilities authorized by the National Capital Transportation 
Act of 1965, the transfer of the functions and duties of the National 
Capital Transportation Agency (herein referred to as the Agency) to 
the Washington Metropolitan Area Transit Authority (herein re-
ferred to as the Authority) as required by Section 301(b) of the 
National Capital Transportation Act of 1960 shall take place on 
September 30, 1967. 
(b) Upon the effective date of the transfer of functions and duties 
authorized by subsection (a) of this section, the President is author-
ized to transfer to the Authority such real and personal property, 
studies, reports, records, and other assets and liabilities as are appro-
priate in order that the Authority may assume the functions and duties 
of the Agency and, further, the President shall make provision for the 
transfer to the Authority of the unexpended balance of the appropria-
tions, and of other funds, of the Agency for use by the Authority but 
such unexpended balances so transferred shall be used only for the 
purpose for which such appropriations were originally made. 
Subse-
quent to said effective date, there is authorized to oe appropriated to the 
Department of Housing and Urban Development, for payment to the 
Authority, any unappropriated portion of the authorization specified 
in Section 5(a)(1) of the National Capital Transportation Act of 
1965. There is also authorized to be appropriated to the District of 
Columbia out of the general fund of the District of Columbia, for 
payment to the Authority, any unappropriated portion of the au-
thorization specified in section 5(a) (2) of such Act. 
Any such ap-
propriations shall be used only for the purposes for which such 
authorizations were originally made. 
(c) Pending the assumption by the Authority of the functions and 
duties of the Agency, the Agency is authorized and directed, in the 
manner herein set forth, fully to cooperate with and assist the 
Authority, the Northern Virginia Transportation Commission and 
the Washington Suburban Transit Commission in the development of 
80 STAT. ] 
PUBLIC LAW 89-774-NOV. 6, 1966 
1353 
plans for the extensions, new lines and related facilities required to 
expand the basic system authorized by the National Capital Trans-
portation Act of 1965 into a regional system, but, pending such transfer 
J^ use esi^note 
of functions and duties, nothing in this Act shall be construed to im-
pair the performance by the Agency of the functions and duties 
imposed by the National Capital Transportation Act of 1965. 
(d) In order to provide the cooperation and assistance specified in englneerrng^"'^ 
subsection (c) of this section, the Agency is authorized to perform, services. 
on a reimbursable basis, planning, engineering and such other services 
for the Authority, as the Authority may request, or to obtain such 
services by contract, but all such assistance and services shall be ren-
dered in accordance with policy determinations made by the Authority 
and shall be advisory only. 
(e) Amounts received by the Agency from the Authority as pro-
vided in subsection (d) of this section shall be available for expendi-
ture by the Agency in performing services for the Authority. 
Section 4. The United States District Courts shall have original o/"oiiS?"°" 
jurisdiction, concurrent with the Courts of Maryland and Virginia, 
of all actions brought by or against the Authority and to enforce sub-
poenas issued pursuant to the provisions of Title III. Any such ac-
tion initiated m a State court shall be removable to the appropriate 
United States District Court in the manner provided by the Act of 
June 25,1948, as amended (28 U.S.C. 1446). 
ea^tatfVou^' 
Section 5. (a) All laws or parts of laws of the United States and 
of the District of Columbia inconsistent with the provisions of Title 
I I I of this Act are hereby amended for the purpose of this Act to the 
extent necessary to eliminate such inconsistencies and to carry out the 
provisions of this Act and Title I I I and all laws or parts of laws and 
all reorganization plans of the United States are hereby amended and 
made applicable for the purpose of this Act to the extent necessary 
to carry out the provisions of this Act and Title III. 
(b) Section 202 of the National Capital Transportation Act of 1960 
Advisory Board. 
(Public Law 86-669, 74 Stat. 537), as amended by Section 7 of the 
^^^^ ' 
National Capital Transportation Act of 1965 (Public Law 89-173, 79 
Stat. 666) is hereby repealed. 
^o use 662. 
Section 6. (a) The right to alter, amend or repeal this Act is hereby 
expressly reserved. 
(b) The Authority shall submit to Congress and the President ^.^I'^rr*^ *° 
copies of all annual and special reports made to the Governors, the 
°"^''^^^' 
Commissioners of the District of Columbia and/or the legislatures of 
the compacting States. 
(c) The President and the Congress or any committee thereof shall ^J^•^°^^^l^^°'^' 
have the right to require the disclosure and furnishing of such in-
formation by the Authority as they may deem appropriate. 
Further, 
the President and Congress or any of its committees shall have access 
to all books, records and papers of the Authority as well as the rigljt 
of inspection of any facility used, owned, leased, regulated or under 
the control of said Authority. 
(d) In carrying out the audits provided for in section 70(b) of the 
^AO ^
^
^
^
j
t
^
^
^
-
g 
Compact the representatives of the General Accounting Office shall 
" ^' P-
have access to all books, accounts, financial records, reports, files, and 
all other papers, things, or property belonging to or in use by the 
Board and necessary to facilitate the audit, and they shall be aft'orded 
full facilities for verifying transactions with the balances or securities 
held by depositories, agents, and custodians. 
Approved November 6, 1966.