[Title 49 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2010 Edition]
[From the U.S. Government Printing Office]



[[Page 1]]

          
          
          49


          Part 1200 to End

                         Revised as of October 1, 2010


          Transportation
          
          


________________________

          Containing a codification of documents of general 
          applicability and future effect

          As of October 1, 2010
          With Ancillaries
                    Published by
                    Office of the Federal Register
                    National Archives and Records
                    Administration
                    A Special Edition of the Federal Register

[[Page ii]]

          U.S. GOVERNMENT OFFICIAL EDITION NOTICE

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              Federal Register, shall be judicially noticed. The CFR is 
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          It is prohibited to use NARA's official seal and the stylized Code 
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[[Page iii]]




                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 49:
    SUBTITLE B--Other Regulations Relating to Transportation 
      (Continued)
          Chapter X--Surface Transportation Board, Department 
          of Transportation (Continued)                              5
          Chapter XI--Research and Innovative Technology 
          Administration, Department of Transportation 
          [Reserved]
          Chapter XII--Transportation Security Administration, 
          Department of Homeland Security                          237
  Finding Aids:
      Table of CFR Titles and Chapters........................     453
      Alphabetical List of Agencies Appearing in the CFR......     473
      Redesignation Table.....................................     483
      List of CFR Sections Affected...........................     485

[[Page iv]]





                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 49 CFR 1200.1 refers 
                       to title 49, part 1200, 
                       section 1.

                     ----------------------------

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, October 1, 2010), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
exercised by the user in determining the actual effective date. In 
instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 2001, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, 1973-1985, or 1986-2000, published in eleven separate 
volumes. For the period beginning January 1, 2001, a ``List of CFR 
Sections Affected'' is published at the end of each CFR volume.

``[RESERVED]'' TERMINOLOGY

    The term ``[Reserved]'' is used as a place holder within the Code of 
Federal Regulations. An agency may add regulatory information at a 
``[Reserved]'' location at any time. Occasionally ``[Reserved]'' is used 
editorially to indicate that a portion of the CFR was left vacant and 
not accidentally dropped due to a printing or computer error.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
requirement to publish regulations in the Federal Register by referring 
to materials already published elsewhere. For an incorporation to be 
valid, the Director of the Federal Register must approve it. The legal 
effect of incorporation by reference is that the material is treated as 
if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed as 
an approved incorporation by reference, please contact the agency that 
issued the regulation containing that incorporation. If, after 
contacting the agency, you find the material is not available, please 
notify the Director of the Federal Register, National Archives and 
Records Administration, 8601 Adelphi Road, College Park, MD 20740-6001, 
or call 202-741-6010.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Authorities 
and Rules. A list of CFR titles, chapters, subchapters, and parts and an 
alphabetical list of agencies publishing in the CFR are also included in 
this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.

[[Page vii]]

    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-741-6000 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, 8601 Adelphi Road, College Park, MD 
20740-6001 or e-mail [email protected].

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ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, the LSA (List of 
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    The Office of the Federal Register also offers a free service on the 
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register. The NARA site also contains links to GPO Access.

    Raymond A. Mosley,
    Director,
    Office of the Federal Register.
    October 1, 2010.







[[Page ix]]



                               THIS TITLE

    Title 49--Transportation is composed of nine volumes. The parts in 
these volumes are arranged in the following order: Parts 1-99, parts 
100-185, parts 186-199, parts 200-299, parts 300-399, parts 400-571, 
parts 572-999, parts 1000-1199, and part 1200 to end. The first volume 
(parts 1-99) contains current regulations issued under subtitle A--
Office of the Secretary of Transportation; the second volume (parts 100-
185) and the third volume (parts 186-199) contain the current 
regulations issued under chapter I--Pipeline and Hazardous Materials 
Safety Administration (DOT); the fourth volume (parts 200-299) contains 
the current regulations issued under chapter II--Federal Railroad 
Administration (DOT); the fifth volume (parts 300-399) contains the 
current regulations issued under chapter III--Federal Motor Carrier 
Safety Administration (DOT); the sixth volume (parts 400-571) contains 
the current regulations issued under chapter IV--Coast Guard (DHS), and 
some of chapter V--National Highway Traffic Safety Administration (DOT); 
the seventh volume (parts 572-999) contains the rest of the regulations 
issued under chapter IV, and the current regulations issued under 
chapter VI--Federal Transit Administration (DOT), chapter VII--National 
Railroad Passenger Corporation (AMTRAK), and chapter VIII--National 
Transportation Safety Board; the eighth volume (parts 1000-1199) 
contains the current regulations issued under chapter X--Surface 
Transportation Board and the ninth volume (part 1200 to end) contains 
the current regulations issued under chapter X--Surface Transportation 
Board, chapter XI--Research and Innovative Technology Administration, 
and chapter XII--Transportation Security Administration, Department of 
Transportation. The contents of these volumes represent all current 
regulations codified under this title of the CFR as of October 1, 2010.

    In the volume containing parts 100-185, see Sec.  172.101 for the 
Hazardous Materials Table. The Federal Motor Vehicle Safety Standards 
appear in part 571.

    Redesignation tables for chapter III--Federal Motor Carrier Safety 
Administration, Department of Transportation and chapter XII--
Transportation Security Administration, Department of Transportation 
appear in the Finding Aids section of the fifth and ninth volumes.

    For this volume, Michele Bugenhagen was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Michael L. White, assisted by Ann Worley.

[[Page 1]]



                        TITLE 49--TRANSPORTATION




                  (This book contains part 1200 to end)

  --------------------------------------------------------------------

  SUBTITLE B--Other Regulations Relating to Transportation (Continued)

                                                                    Part

chapter x--Surface Transportation Board, Department of 
  Transportation (Continued)................................        1200
chapter xi--Research and Innovative Technology Administration, 
  Department of Transportation [Reserved]

chapter xii--Transportation Security Administration, 
  Department of Homeland Security...........................        1510

[[Page 3]]

  Subtitle B--Other Regulations Relating to Transportation (Continued)

[[Page 5]]



 CHAPTER X--SURFACE TRANSPORTATION BOARD, DEPARTMENT OF TRANSPORTATION 
                               (CONTINUED)




  --------------------------------------------------------------------


  Editorial Note: Nomenclature changes to chapter X appear at 62 FR 
42075, Aug. 5, 1997.

              SUBCHAPTER C--ACCOUNTS, RECORDS, AND REPORTS
              PARTS 1200-1219--UNIFORM SYSTEMS OF ACCOUNTS
Part                                                                Page
1200            General accounting regulations under the 
                    Interstate Commerce Act.................           7
1201            Railroad companies..........................           8
1202-1219

 [Reserved]

                PARTS 1220-1239--PRESERVATION OF RECORDS
1220            Preservation of records.....................         164
                        PARTS 1240-1259--REPORTS
1241            Annual, special, or periodic reports--
                    Carriers subject to Part I of the 
                    Interstate Commerce Act.................         169
1242            Separation of common operating expenses 
                    between freight service and passenger 
                    service for railroads...................         170
1243            Quarterly operating reports--railroads......         183
1244            Waybill analysis of transportation of 
                    property--railroads.....................         185
1245            Classification of railroad employees; 
                    reports of service and compensation.....         191
1246            Number of railroad employees................         205
1247            Report of cars loaded and cars terminated...         205
1248            Freight commodity statistics................         205
1250-1252

 [Reserved]

[[Page 6]]

1253            Rate-making organization; records and 
                    reports.................................         211
                       PARTS 1260-1269--VALUATION
1260-1261

 [Reserved]

    PARTS 1280-1299--CLASSIFICATION AND DECLASSIFICATION OF NATIONAL 
                    SECURITY INFORMATION AND MATERIAL
1280            Handling of national security information 
                    and classified material.................         212
1281-1299

 [Reserved]

              SUBCHAPTER D--CARRIER RATES AND SERVICE TERMS
1300            Disclosure, publication, and notice of 
                    change of rates and other service terms 
                    for rail common carriage................         215
1301

[Reserved]

1302            Export and import shipments; railroads......         217
1305            Disclosure and notice of change of rates and 
                    other service terms for pipeline common 
                    carriage................................         217
1310            Tariff requirements for household goods 
                    carriers................................         219
1312            Regulations for the publication, posting and 
                    filing of tariffs for the transportation 
                    of property by or with a water carrier 
                    in noncontiguous domestic trade.........         221
1313            Railroad contracts for the transportation of 
                    agricultural products...................         227
1319            Exemptions..................................         233
1320-1324

 [Reserved]

1325            Extension of credit to candidates for 
                    Federal office or their representatives.         233
1331            Applications under 49 U.S.C. 10706 and 13703         234
1332            Filing contracts for surface mail 
                    transportation..........................         235

[[Page 7]]



               SUBCHAPTER C_ACCOUNTS, RECORDS AND REPORTS



               PARTS 1200	1219_UNIFORM SYSTEMS OF ACCOUNTS



PART 1200_GENERAL ACCOUNTING REGULATIONS UNDER THE INTERSTATE COMMERCE ACT--Table of Contents



Sec.
1200.1 Financial statements released by carriers.
1200.2 Adoption of generally accepted accounting principles issued by 
          the Financial Accounting Standards Board (FASB).

    Authority: 49 U.S.C. 721, 11142, 11143, 11144, 11145.



Sec.  1200.1  Financial statements released by carriers.

    Carriers desiring to do so may prepare and publish financial 
statements in reports to stockholders and others, except in reports to 
this Board, based on generally accepted accounting principles for which 
there is authoritative support, provided that any variance from this 
Board's prescribed accounting rules contained in such statements is 
clearly disclosed in footnotes to the statements.

[32 FR 20123, Dec. 20, 1967]



Sec.  1200.2  Adoption of generally accepted accounting principles issued by the Financial Accounting Standards Board (FASB).

    (a) Accounting Series Circulars. Following the release of a 
Statement of Financial Accounting Standards by the FASB, and provided 
that the Office of Economics, Environmental Analysis, and Administration 
of the Board considers such standards appropriate for the Board's 
accounting regulations, the Office of Economics, Environmental Analysis, 
and Administration shall issue an Accounting Series Circular (ASC) 
requiring carriers under the Board's jurisdiction to follow the new 
standards in their accounts and reports filed with the Board. The Office 
shall also specify in the ASC the proper accounting procedures that the 
carriers shall follow.
    (b) Carriers' and Interested Parties' Comments on the ASC. The ASC 
issued by the Office of Economics, Environmental Analysis, and 
Administration will remain effective until revoked by the Office of 
Economics, Environmental Analysis, and Administration. After an ASC is 
issued, the Office of Economics, Environmental Analysis, and 
Administration shall allow carriers and interested parties 45 days 
following the service date of the ASC during which the respondents may 
submit to the Office their comments and reasons either supporting or 
opposing the ASC.
    (c) Formal Adoption of the New Accounting Standards. After 
considering the comments submitted in response to the ASC, and based on 
the proposal of the Office of Economics, Environmental Analysis, and 
Administration, the Board will decide whether or not to adopt the new 
accounting standards specified in the ASC by revising the Uniform 
Systems of Accounts, (49 CFR 1201 through 1210).
    (d) Accounting Standards Not Appropriate for Board's Use. The Office 
of Economics, Environmental Analysis, and Administration may determine 
that a new FASB Statement of Financial Accounting Standards is not 
appropriate for use by carriers under the Board's jurisdiction. In such 
instances, the Office shall issue an ASC to advise the carriers that the 
new standards shall not be used in their reports filed with the Board. 
The carriers and interested parties shall be allowed 45 days following 
the ASC's service date to submit comments to the Board. The Board will 
then determine whether or not to revise the Uniform Systems of Accounts 
to conform to the new accounting standards.

[43 FR 26314, June 19, 1978, as amended at 67 FR 57533, Sept. 11, 2002]

[[Page 8]]



PART 1201_RAILROAD COMPANIES--Table of Contents



                  Subpart A_Uniform System of Accounts

                    List of Instructions and Accounts

                         REGULATIONS PRESCRIBED

(i) Regulations prescribed.
(ii) Definitions.

                          GENERAL INSTRUCTIONS

Sec.
1-1 Classification of carriers.
1-2 Classification of accounts.
1-3 Records.
1-4 Accounting period.
1-5 Accrual method of accounting.
1-6 Charges to be just and reasonable.
1-7 Changes in accounting estimates.
1-8 Accounting for computer systems and word processing costs.
1-9 Transactions with affiliated companies.
1-10 Accounting for income taxes.
1-11 Items in texts of accounts.
1-12 Distribution of pay and expenses of employees.
1-13 Payroll related expenses.
1-14 Submission of questions.
1-15 Transfers from government authorities.
1-16 Business entertainment expenses.
1-17 Disclosure guideline.
1-18 Distribution of expenses for material, tools, fuel, lubricants, 
          purchased services and general.

                   INSTRUCTIONS FOR PROPERTY ACCOUNTS

2-1 Items to be charged.
2-2 Minimum rule applicable to additions to property.
2-3 Land.
2-4 Structures.
2-5 Equipment.
2-6 Components of construction cost.
2-7 Additions to and retirements of property--General.
2-8 Additions to and retirements of units of property.
2-9 Additions and retirements of other than units of property.
2-10 Additions to and retirements of track.
2-11 Expenses in connection with additions and betterments.
2-12 Units of property rebuilt or converted.
2-13 Changes in line of road and relocation of yard tracks.
2-14 Track connections.
2-15 Merger, consolidation, and purchase of a railway operating entity 
          or system.
2-16 Reorganization of railway.
2-17 Construction projects in which governmental agencies, individuals, 
          or others, and the carrier participate.
2-18 Leased property improvements and retirements.
2-19 List of units of property.
2-20 Accounting for leases.
2-21 Freight train car repair costing.
2-22 Map specifications.
2-23 Accounting for engineering costs.
2-24 Accounting for other general expenditures.

                  INSTRUCTIONS FOR MAINTENANCE EXPENSES

3-1 Items to be charged.

                 INSTRUCTIONS FOR DEPRECIATION ACCOUNTS

4-1 Method.
4-2 Rates of depreciation.
4-3 Depreciation records to be kept.
4-4 Leased property--depreciation.
4-5 Jointly used property--depreciation.

           INSTRUCTIONS FOR INCOME AND BALANCE SHEET ACCOUNTS

5-1 Current assets.
5-2 Recorded value of securities owned.
5-3 Discounts, expenses, and premiums on debt.
5-4 Discount, premium, and assessment on capital stock.
5-5 Joint liabilities.
5-6 Contingencies.
5-7 Long-term obligations.

                   INSTRUCTIONS FOR CLEARING ACCOUNTS

6-1 Items to be charged.
6-2 Material and stationery store expenses.
6-3 Shop expenses.
6-4 Gravel and sand pits and quarries.
6-5 Power plant operations.

                            PROPERTY ACCOUNTS

                                  Road

0 Road.
2 Land for transportation purposes.
3 Grading.
4 Other right-of-way expenditures.
5 Tunnels and subways.
6 Bridges, trestles, and culverts.
7 Elevated structures.
8 Ties.
9 Rails and other track material.
11 Ballast.
13 Fences, snowsheds, and signs.
16 Station and office buildings.
17 Roadway buildings.
18 Water stations.
19 Fuel stations.
20 Shops and enginehouses.
22 Storage warehouses.
23 Wharves and docks.
24 Coal and ore wharves.
25 TOFC/COFC terminals.
26 Communication systems.
27 Signals and interlockers.
29 Power plants.
31 Power-transmission systems.
35 Miscellaneous structures.
37 Roadway machines.

[[Page 9]]

39 Public improvements; construction.
44 Shop machinery.
45 Power-plant machinery.

                                Equipment

50 Equipment.
52 Locomotives.
53 Freight-train cars.
54 Passenger-train cars.
55 Highway revenue equipment.
56 Floating equipment.
57 Work equipment.
58 Miscellaneous equipment.
59 Computer systems and word processing equipment.

                          General Expenditures

70 General expenditures.
76 Interest during construction.

                         Other Property Accounts

80 Other elements of investment.
90 Construction in progress.

                   RAILWAY OPERATING REVENUE ACCOUNTS

                     Transportation Revenue Accounts

100 Transportation; rail line.
101 Freight.
102 Passenger.
103 Passenger-related.
104 Switching.
105 Water transfers.
106 Demurrage.
110 Incidental.

                     Joint Facility Revenue Accounts

120 Joint facility.
121 Joint facility--credit.
122 Joint facility--debit.

                        OPERATING EXPENSE ACCOUNT

                 Operating Expense Accounts Explanations

100000 Personnel.
110000 Salaries and wages.
120000 Fringe benefits.
200000 Materiel.
210000 Materials, tools, supplies, fuels, lubricants.
300000 Purchased services.
310000 Lease rentals--Debit.
320000 Lease rentals--Credit.
330000 Joint facility rents--Debit.
340000 Joint facility rents--Credit.
350000 Other rents--Debit.
360000 Other rents--Credit.
370000 Joint facility--Debit.
380000 Joint facility--Credit.
390000 Repairs billed by others--Debit.
400000 Repairs billed to others--Credit.
410000 Other purchased services.
500000 Claims and insurance.
510000 Loss and damage claims.
520000 Other casualties.
530000 Insurance.
600000 General.
610000 Other expenses.
620000 Depreciation.
630000 Uncollectible accounts.
640000 Property taxes.
650000 Other taxes.

                             INCOME ACCOUNTS

                             Ordinary Items

501 Railway operating revenues.
502 Railway operating revenues--transfers from government authorities 
          for current operations.
503 Railway operating revenues--amortization of deferred transfers from 
          government authorities.
506 Revenues from property used in other than carrier operations.
510 Miscellaneous rent income.
512 Separately operated properties; profit.
513 Dividend income.
514 Interest income.
516 Income from sinking and other funds.
517 Release of premiums on funded debt.
518 Reimbursement received under contracts and agreements.
519 Miscellaneous income.
531 Railway operating expenses.
534 Expenses of property used in other than carrier operations.
544 Miscellaneous taxes.
545 Separately operated properties; loss.
546 Interest on funded debt.
547 Interest on unfunded debt.
548 Amortization of discount on funded debt.
549 Maintenance of investment organization.
550 Income transferred under contracts and agreements.
551 Miscellaneous income charges.
553 Uncollectible accounts.
555 Unusual or infrequent items (debit) credit.
556 Income taxes on ordinary income.
557 Provision for deferred taxes.
560 Income or loss from operations of discontinued segments.
562 Gain or loss on disposal of discontinued segments.
570 Extraordinary items (net).
590 Income taxes on extraordinary items.
591 Provision for deferred taxes--extraordinary items.
592 Cumulative effect of changes in accounting principles.

                       RETAINED EARNINGS ACCOUNTS

                                 Credit

601 Credit balance (at beginning of calendar year).
601.5 Prior period adjustments to beginning retained earnings account.
602 Credit balance transferred from income.
603 Appropriations released.

[[Page 10]]

606 Other credits to retained earnings.

                                  Debit

611 Debit balance (at beginning of calendar year).
612 Debit balance transferred from income.
616 Other debits to retained earnings.
620 Appropriations for sinking and other funds.
621 Appropriations for other purposes.
623 Dividends.

               GENERAL BALANCE SHEET ACCOUNTS EXPLANATIONS

                                 Assets

                             Current Assets

701 Cash.
702 Temporary cash investments.
703 Special deposits.
704 Loans and notes receivable.
705 Accounts receivable; interline and other balances.
706 Accounts receivable; customers.
707 Accounts receivable; other.
708 Interest and dividends receivable.
708.5 Receivables from affiliated companies.
709 Accrued accounts receivable.
709.5 Allowance for uncollectible accounts.
710 Working funds.
711 Prepayments.
712 Material and supplies.
713 Other current assets.
714 Deferred income tax debits.

                              Special Funds

715 Sinking funds.
716 Capital funds.
717 Other funds.

                               Investments

721 Investments and advances; affiliated companies.
721.5 Adjustments; investments and advances--affiliated companies.
722 Other investments and advances.
723 Adjustments; other investments and advances.
724 Allowance for net unrealized loss on noncurrent marketable equity 
          securities--Cr.

                            Tangible Property

731 Road and equipment property.
732 Improvements on leased property.
733 Accumulated depreciation; improvements on leased property.
734 Accumulated amortization; improvements on leased property--defense 
          projects.
735 Accumulated depreciation; road and equipment property.
736 Accumulated amortization; road and equipment property--defense 
          project.
737 Property used in other than carrier operations.
738 Accumulated depreciation; property used in other than carrier 
          operations.

                           Intangible Property

739 Organization expenses.

                    Other Assets and Deferred Debits

741 Other assets.
743 Other deferred debits.
744 Accumulated deferred income tax debits.

                  Liabilities and Shareholders' Equity

                           Current Liabilities

751 Loans and notes payable.
752 Accounts payable; interline and other balances.
753 Audited accounts and wages payable.
754 Accounts payable; other.
755 Interest payable.
756 Dividends payable.
757 Payables to affiliated companies.
759 Accrued accounts payable.
760 Federal income taxes accrued.
761 State and other income taxes accrued.
761.5 Other taxes accrued.
762 Deferred income tax credits.
763 Other current liabilities.
764 Equipment obligations and other long-term debt due within one year.

                    Long-Term Debt Due After One Year

765 Funded debt unmatured.
766 Equipment obligations.
766.5 Capitalized lease obligations.
767 Receivers' and trustees' securities.
768 Debt in default.
769 Accounts payable; affiliated companies.
770.1 Unamortized debt discount.
770.2 Unamortized premium on debt.

                       Other Long-Term Liabilities

771 Accrued liability; pension and welfare.
772 Accrued liability; leased property.
774 Accrued liability; casualty and other claims.
775 Other accrued liabilities.
781 Interest in default.
782 Other liabilities.
783 Deferred revenues--transfers from government authorities.

                            Deferred Credits

784 Other deferred credits.
786 Accumulated deferred income tax credits.

                          Shareholders' Equity

791 Capital stock.
792 Capital stock to be distributed.
793 Discount on capital stock.
794 Premiums and assessments on capital stock.

[[Page 11]]

795 Other capital.
797 Retained earnings; appropriated.
798 Retained earnings; unappropriated.
798.1 Net unrealized loss on noncurrent marketable securities.
798.5 Treasury stock

                            Conversion Tables

                 Subpart B_Branch Line Accounting System

900 Definitions.
910 Purpose and scope.
920 Collection of data.
930 Publication of data.
940 Annual branch line report.
950 Text and chart of accounts.

Appendix I to Part 1201--Certification of Branch Line Accounting System 
          Records

    Authority: 49 U.S.C. 11142 and 11164.



                  Subpart A_Uniform System of Accounts

    Source: 42 FR 35017, July 7, 1977, unless otherwise noted.

                    List of Instructions and Accounts



REGULATIONS PRESCRIBED--Table of Contents



    (i) Regulations prescribed. Carriers by railroad subject to 
provisions of the Interstate Commerce Act and not independently operated 
as electric lines, and each lessor of such a carrier, shall comply with 
regulations in this part as presented hereinafter.
    (ii) Definitions.
    1. Abandonment means the withdrawal from transportation service of a 
branch line or other track segment or facility, representing a permanent 
reduction in plant.
    2. Accounts means the accounts prescribed in this system of 
accounts.
    3. Actually issued as applied to funded debt securities or capital 
stock issued or assumed by the company, means those which have been sold 
to bona fide purchasers or holders for a valuable consideration 
(including those issued in exchange for other securities or other 
property) and such purchasers or holders secured them free from control 
by the carriers. Also securities issued as dividends on stock.
    4. Actually outstanding as applied to funded debt securities or 
capital stock issued or assumed by the carrier means those which have 
been actually issued and are neither retired and canceled nor reacquired 
and held by or for the accounting company.
    5. (a) Affiliated companies means companies or persons that 
directly, or indirectly through one or more intermediaries control, or 
are controlled by, or are under common control with, the accounting 
carrier.
    (b) Control (including the terms controlling, controlled by, and 
under common control with) means the possession directly or indirectly, 
of the power to direct or cause the direction of the management and 
policies of a company, whether such power is exercised through one or 
more intermediary companies, or alone, or in conjunction with, or 
pursuant to an agreement, and whether such power is established through 
a majority of minority ownership or voting of securities, common 
directors, officers or stockholders, voting trusts, holding trusts, 
associated companies, contract or any other direct or indirect means.
    6. Amortization means the gradual extinguishment of an amount in an 
account by distributing such amount over a fixed period dependent on the 
requirements of regulatory bodies, over the life of the asset or 
liability to which it applies, or over the period during which it is 
anticipated the benefit will be realized.
    7. Carrier as used herein and when not otherwise indicated in the 
context means any carrier to which this system of accounts is 
applicable.
    8. Consolidation means the formation of a new company. See 
instruction 2-15.
    9. Board means the Surface Transportation Board.
    10. Compensating balance means the portion of any demand deposit (or 
any time deposit or certificate of deposit) maintained by a carrier (or 
by any person on behalf of the carrier) which constitutes support for 
existing borrowing arrangements of the carrier with a lending 
institution. Such arrangements include both outstanding borrowings and 
the assurance of future credit availability. (The compensating balance 
requirement should be adjusted by the amount of float unless such 
adjustment would cause the compensating

[[Page 12]]

balance to be greater than the cash balance per carrier's books.) The 
float adjustment is made by subtracting the float from the compensating 
balance requirement if the collected bank ledger balance exceeds the 
cash balance per carrier's books or by adding the float to the 
compensating balance requirement if the collected bank ledger balance is 
less than the cash balance per carrier's books.
    (a) Float means deposits and withdrawals in transit which constitute 
a difference between the collected bank ledger balance and the cash 
balance per carrier's books.
    11. Cost center refers to an organizational subdivision for which 
cost data are desired and for which provision is made to accumulate 
costs such as a terminal, yard, or track segment. A cost center may 
correspond to a given area of responsibility for which costs are 
presently accumulated for planning and control. A cost center is the 
smallest segment of activity or area of responsibility for which costs 
are accumulated and directly traceable.
    12. Cost of renewal means the cost of additional material applied 
(other than the value assigned second-hand parts remaining in the 
rebuilt unit) plus the cost of labor used in the rebuilding process, 
exclusive of the portion applicable to dismantling and repair of old 
parts reused.
    13. Cost of removal means cost of demolishing, dismantling, tearing 
down or otherwise removing property.
    14. Debt issue cost means all costs in connection with the issuance 
and sale of evidences of debt, such as fees for drafting mortgages and 
trust deeds; fees for issuing or recording evidences of debt; cost of 
engraving and printing bonds and certificates of indebtedness; fees paid 
trustees, specific costs of obtaining governmental authority; fees for 
legal services; fees and commissions paid underwriters, brokers and 
salespeople for marketing such evidences for debt; fees and costs of 
listing on exchanges; and other like costs.
    15. Discount as applied to funded debt securities or capital stock 
issued or assumed by the carrier, means the excess of the par or face 
value of the securities plus interest or dividends accrued at the date 
of the sale over the cash value of the consideration received from their 
sale.
    16. Equity security encompasses any instrument representing 
ownership shares (e.g., common, preferred and other capital stock), or 
the right to acquire (e.g., warrants, rights, and call options) or 
dispose of (e.g., put options) ownership shares in an enterprise at 
fixed or determinable prices. The term does not encompass preferred 
stock that by its terms either must be redeemed by the issuing 
enterprise or is redeemable at the option of the investor, nor does it 
include treasury stock or convertible bonds.
    (a) Marketable, as applied to an equity security, means an equity 
security as to which sales prices or bid and ask prices are currently 
available on a national securities exchange (i.e., those registered with 
the Securities and Exchange Commission) or in the over-the-counter 
market. In the over-the-counter market, an equity security shall be 
considered marketable when a quotation is publicly reported by the 
National Association of Securities Dealers Automatic Quotations System 
or by the National Quotations Bureau, Inc. (provided, in the latter 
case, that quotations are available from at least three dealers). Equity 
securities traded in foreign markets shall be considered marketable when 
such markets are of a breadth and scope comparable to those referred to 
above. This definition is not met by restricted stock (securities for 
which sale is restricted by a governmental or contractual requirement 
except where such requirement terminates within one year or where the 
holder has the power to cause the requirement to be met within one 
year). Any portion of the stock which can reasonably be expected to 
qualify for sale within one year, such as may be the case under Rule 144 
or similar rules of the Securities and Exchange Commission, is not 
considered restricted.
    (b) Market value refers to the aggregate of the market price of a 
single share or unit times the number of shares or units of each 
marketable equity security in the portfolio. When an equity has taken 
positions involving short sales, sales of calls, and purchases of puts 
for marketable equity securities and the same securities are

[[Page 13]]

included in the portfolio, those contracts shall be taken into 
consideration in the determination of market value of the marketable 
equity securities.
    (c) Cost, as applied to a marketable equity security, refers to the 
original cost unless a new cost basis has been assigned based on 
recognition of an impairment of value that was deemed other than 
temporary or as the result of a transfer between current and noncurrent 
classifications. In such cases, the new cost basis assigned shall be 
considered cost.
    17. (a) Income taxes means taxes based on income determined under 
provisions of the United States Internal Revenue Code and foreign, state 
and other taxes (including franchise taxes) based on income.
    (b) Income tax expense means the amount of income taxes (whether or 
not currently payable or refundable) allocable to a period in the 
determination of net income.
    (c) Pretax accounting income means income or loss for a period, 
exclusive of related income tax expense.
    (d) Taxable income means the excess of revenues over deductions or 
the excess of deductions over revenue to be reported for income tax 
purposes for a period.
    (e) Timing differences means differences between the periods in 
which transactions affect taxable income and the periods in which they 
enter into the determination of pretax accounting income. Timing 
differences originate in one period and reverse or turn around in one or 
more subsequent periods. Some timing differences reduce income taxes 
that would otherwise be payable currently; others increase income taxes 
that would otherwise be payable currently.
    (f) Permanent differences means differences between taxable income 
and pretax accounting income arising from transactions that, under 
applicable tax laws and regulations, will not be offset by corresponding 
differences or turn around in other periods.
    (g) Tax effects means differentials in income taxes of a period 
attributable to (1) revenue or expense transactions which enter into the 
determination of pretax accounting income in one period and into the 
determination of taxable income in another period, (2) deductions or 
credits that may be carried backward or forward for income tax purposes 
and (3) adjustments of prior periods and direct entries to other 
stockholders' equity accounts which enter into the determination of 
taxable income in a period but which do not enter into the determination 
of pretax accounting income of that period. A permanent difference does 
not result in a tax effect as that term is used in this definition.
    (h) Deferred taxes means tax effects which are deferred for 
allocation to income tax expense of future periods.
    (i) Interperiod tax allocation means the process of apportioning 
income taxes among periods.
    (j) Tax allocation within a period means the process of apportioning 
income tax expenses applicable to a given period between income before 
extraordinary items and extraordinary items, and of associating the 
income tax effects of adjustments of prior periods and direct entries to 
other stockholders' equity accounts with these items.
    18. (a) Investor means a business entity that holds an investment in 
voting stock of another company.
    (b) Investee means a corporation that issued voting stock held by an 
investor.
    (c) Corporate joint venture is a company owned and operated as a 
separate and specific business or project for the mutual benefit of the 
members of the group. Joint facilities for purposes of this system of 
accounts are not considered corporate joint ventures.
    (d) Dividends when applied to distributions received from investees 
unless otherwise specified, means dividends received or receivable in 
cash, other assets, or another class of stock and does not include stock 
dividends or stock splits.
    (e) Earnings or losses of an investee and financial position of an 
investee refer to net income (or net loss) and financial position of an 
investee determined in accordance with generally accepted accounting 
principles.
    (f) Undistributed earnings of an investee means net income less 
dividends declared whether received or not.

[[Page 14]]

    (g) Date of acquisition is the date on which the investor assumes 
the rights of ownership. Ordinarily, this is the date assets are 
received and other assets are given or securities issued.
    19. Joint facility means any owned or leased carrier operating 
property occupied or operated jointly by the carrier and one or more 
other carriers, under an arrangement whereby the cost and income are 
apportioned to the parties to the joint agreement. Portions of a 
structure or other property used exclusively by each of two or more 
carriers are not joint facilities.
    20. Ledger value of an account means the undepreciated or 
unamortized cost of acquisition of the item to the carrier, recorded in 
the general ledger. In case the cost of any item of property is not 
shown separately in the ledger, the ledger value of that item shall be 
its proportionate share of the value of the entire group in which the 
particular property is included.
    21. Merger means the acquisition of one company by another. See 
instruction 2-15.
    22. Minor items of property means the associated parts or items of 
which units of property are composed.
    23. Net railway operating income: Operating revenue remaining after 
deducting operating expenses, income taxes on ordinary income, and the 
provision for deferred income taxes. Also, in arriving at NROI, deduct 
the Income from Lease of Road and Equipment and add the Rent for Leased 
Road and Equipment, formerly accounts 509 and 542, respectively.
    24. Net salvage value means salvage value of property retired less 
the cost of removal.
    25. Nominally issued as applied to funded debt securities or capital 
stock issued or assumed by the carrier, means those which have been 
signed, certified by trustees, or otherwise executed, and placed with 
the proper officer for sale and delivery, or pledged, or otherwise 
placed in some special fund of the accounting company, but which have 
not been sold or issued directly to the trustees of such fund in 
accordance with contractual requirements.
    26. Nominally outstanding as applied to funded debt securities or 
capital stock issued or assumed by the carrier, means those which, after 
being actually issued, have been reacquired by or for the accounting 
company under such circumstances which require them to be considered as 
held alive and not retired and canceled.
    27. Premium as applied to funded debt securities or capital stock 
issued or assumed by the carrier, means the excess of the cash value of 
the consideration received from their sale over the sum of their par 
(stated value of no par stock) or face value and interest or dividends 
accrued at the date of sale.
    28. Programmed track replacements are costs incurred as part of a 
track replacement program or planned expenditures. Programmed track 
replacements are generally performed by relatively large work gangs 
which, on the basis of programmed and authorized work orders, use heavy 
mechanized equipment to replace rail, ties and other track material. For 
guidance on what not to capitalize, see the notes to the text of 
Accounts 8, 9 and 11.
    29. Property retired means units of property which have been 
removed, sold, abandoned, destroyed, or which for any cause have been 
permanently withdrawn from service; also minor items of property not 
replaced.
    30. Rail Transportation Property. Rail transportation property is 
all property and other assets, irrespective of ownership, that comprise 
the entire operating unit devoted to rail transportation service. This 
definition comprises the following accounts:

701 Cash
703 Special deposits
704 Loans and notes receivable
705 Accounts receivable--interline and other balances
706 Accounts receivable--customers
707 Accounts receivable--other
708.5 Receivable with affiliated companies
709 Accrued accounts receivable
710 Working funds
711 Prepayments
712 Material and supplies
713 Other current assets
714 Deferred income tax charges
731 Road and equipment property
732 Improvements on leased property

    31. Salvage value means the amount received from the sale of 
operating property retired less any expenses in connection with the sale 
or in preparing the property for sale. If the

[[Page 15]]

property is retained for reuse, the salvage value shall be recorded in 
account 712, Materials and Supplies, or other appropriate account at an 
amount not to exceed its recorded cost (actual or average), or current 
market value, whichever is lower.
    32. Segment of a business refers to a component of an entity whose 
activities represent a separate major line of business or class of 
customer. A segment may be in the form of a subsidiary, a division, or a 
department, and in some cases a joint venture or other non-subsidiary 
investee, provided that its assets, results of operations, and 
activities can be clearly distinguished, physically and operationally 
and for financial reporting purposes, from the other assets, results of 
operations, and activities of the entity. The fact that the results of 
operations of the segment being sold or abandoned cannot be separately 
identified strongly suggests that the transaction should not be 
classified as a disposal of a segment of business.
    (a) Measurement date means the date on which the management having 
authority to approve the action commits itself to a formal plan to 
dispose of a segment of the business, whether by abandonment or sale. 
The measurement date for disposals requiring Commission approval shall 
be the service date of the Order authorizing the disposal.
    (b) Disposal date refers to the date of closing the sale, if the 
disposal is by sale or the date that operations cease if the disposal is 
by abandonment.
    33. Service life means the period between the date when operating 
property is placed in service and the date of its retirement.
    34. Service value means the ledger value of operating property less 
its salvage value (see definition 17).
    35. Track maintenance is material and labor costs of routine track 
repairs such as sporadic tie replacement, repair of broken rails, 
tightening track bolts and track spikes. A more complete list of 
maintenance items are included in notes to the text of Accounts 8, 9 and 
11.
    36. Work equipment means equipment which can be coupled in a train 
for movement over the carrier's tracks, and which is used in the 
carrier's work service. See equipment listing for account 57, Work 
equipment.

[42 FR 35017, July 7, 1977, as amended at 44 FR 3493, Jan. 19, 1979; 45 
FR 31110, May 12, 1980; 48 FR 7183, Feb. 18, 1983; 48 FR 33718, July 25, 
1983; 49 FR 2254, Jan. 19, 1984; 52 FR 4321, Feb. 11, 1987]



GENERAL INSTRUCTIONS--Table of Contents



    1-1 Classification of carriers. (a) For purposes of accounting and 
reporting, carriers are grouped into the following three classes:
    Class I: Carriers having annual carrier operating revenues of $250 
million or more after applying the railroad revenue deflator formula 
shown in Note A.
    Class II: Carriers having annual carrier operating revenues of less 
than $250 million but in excess of $20 million after applying the 
railroad revenue deflator formula shown in Note A.
    Class III: Carriers having annual carrier operating revenues of $20 
million or less after applying the railroad revenue deflator formula 
shown in Note A.
    (b)(1) The class to which any carrier belongs shall be determined by 
annual carrier operating revenues after the railroad revenue deflator 
adjustment. Families of railroads operating within the United States as 
a single, integrated rail system will be treated as a single carrier for 
classification purposes. Upward and downward reclassification will be 
effected as of January 1 in the year immediately following the third 
consecutive year of revenue qualification.
    (2) If a Class II or Class III carrier's classification is changed 
based on three years' adjusted revenues the carrier shall complete and 
file the Classification Index Survey Form with the Board by March 31 of 
the year following the end of the period to which it relates.
    (3) Newly organized carriers shall be classified on the basis of 
their annual carrier operating revenues after railroad revenue deflator 
adjustment for the latest period of operation. If actual data are not 
available, new carriers shall be classified on the basis of their 
carrier operating revenues known and estimated for a year (after 
railroad revenue deflator adjustment).

[[Page 16]]

    (4) When a business combination occurs, such as a merger, 
reorganization, or consolidation, the surviving carrier shall be 
reclassified effective January 1 of the next calendar year on the basis 
of the combined revenue for the year when the combination occurred 
(after railroad revenue deflator adjustment).
    (5) In unusual circumstances, such as partial liquidation and 
curtailment or elimination of contracted services, where regulations 
will unduly burden the carrier, the carrier may request the Board for an 
exception to the regulations. This request shall be in writing 
specifying the conditions justifying an exception.
    (c) Class I carriers shall keep all of the accounts of this system 
which are applicable to their operations. Class II and III carriers are 
not required to maintain the accounts of this system.
    (d) All switching and terminal companies, regardless of their 
operating revenues will be designated Class III carriers.
    (e) Unless provided for otherwise, all electric railway carriers, 
regardless of operating revenues, will be designated Class III carriers.

    Note A: The railroad revenue deflator formula is based on the 
Railroad Freight Price Index developed by the Bureau of Labor 
Statistics. The formula is as follows:

Current Year's Revenues x (1991 Average Index/Current Year's Average 
Index)
    Note B: See related regulations 49 CFR 1241.15 Railroad 
classification survey form.

[57 FR 27185, June 18, 1992; 57 FR 31754, July 17, 1992; 66 FR 56245, 
Nov. 7, 2001; 67 FR 57533, Sept. 11, 2002]

    1-2 Classification of accounts. (a) Accounts are prescribed to cover 
cost of property used in transportation operations and operations 
incidental thereto and for revenues, expenses, taxes, rents, and other 
items of income for such operations. Separate accounts are prescribed 
for investment in property not used in transportation operations and for 
other investments and income therefrom; for unusual and infrequent 
items; for operations and disposal of discontinued segments; for 
extraordinary items and accounting changes; and for assets, liabilities 
and capital includable in the balance sheet statement. Retained earnings 
accounts form the connecting link between the income account and the 
equity section of the balance sheet. They are provided to record the 
transfer of net income or loss for the year; certain capital 
transactions; and, when authorized by the Board, other items.
    (b) The cost of property, and the revenues, expenses, taxes and 
rents for miscellaneous operations involving the use of such facilities 
as hotels, restaurants, grain elevators, storage warehouses, power 
plants, cold storage plants, etc., shall not be included in the accounts 
prescribed for transportation operations unless the operation of the 
facilities is conducted by the railway companies in connection with 
furnishing transportation services. Likewise, the cost of property, the 
revenues, expenses, taxes, and rents arising from the operation of 
stockyards shall not be included in accounts prescribed for 
transportation operations unless operation of the facilities is 
conducted in connection with transportation of livestock. It is not 
intended that cost of property and income arising from incidental public 
stockyards service rendered by stockyards primarily devoted to 
transportation services shall be excluded from transportation operation 
accounts.
    (c) Joint facility accounts are provided for the joint users of 
tracks, bridges, yards, wharves, stations, and other facilities in which 
to record items in settlement for use of such facilities. When the 
compensation for the use of facilities is a fixed amount or is based 
upon a charge per passenger, ton, car or other unit, the amount shall be 
fairly apportioned by the operating company among the joint facility 
operating expense and income accounts. The creditor shall show the 
distribution of these charges upon its bills, and such distribution 
shall be adhered to by the debtor. Train service in connection with the 
line haul of traffic, including that operated under a joint arrangement 
for the benefit of two or more carriers, is not considered a joint 
facility operation.
    (d)(1) Extraordinary Items. All items of profit and loss recognized 
during the year are includable in ordinary income unless evidence 
clearly supports their classification as extraordinary items.

[[Page 17]]

    Extraordinary items are characterized by both their unusual nature 
and infrequent occurrence taking into account the environment in which 
the firm operates; they must also meet the materiality standard.
    Unusual means the event or transaction must possess a high degree of 
abnormality and be of a type clearly unrelated to, or only incidentally 
related to the ordinary and typical activities of the entity.
    Infrequent occurrence means the event or transaction shall be of a 
type not reasonably expected to recur in the foreseeable future.
    (2) Unusual or Infrequent Items. Material events unusual in nature 
or infrequent in occurrence but not both, thus not meeting both criteria 
for classification as extraordinary, shall be includable in the accounts 
provided as separate components of income/expense from continuing 
operations.
    (3) Discontinued Operations. The results of continuing operations 
shall be reported separately from discontinued operations and any gain 
or loss resulting from disposal of a segment of a business (see 
definition 23(a)) shall be reported in conjunction with the related 
results of discontinued operations and not as an extraordinary item. The 
disposal of a segment of a business shall be distinguished from other 
disposals of assets incident to the evolution of the entity's business, 
such as the disposal of part of a line of business, the shifting of 
production or marketing activities for a particular line of business 
from one location to another, the phasing out of a product line or class 
of service, and other changes occasioned by technological improvements. 
If a loss is expected from the proposed sale or abandonment of a 
segment, the estimated loss shall be provided for at the measurement 
date (see definition 23(b)). If a gain is expected, it shall be 
recognized when realized, which ordinarily is the disposal date (see 
definition 23(c)).
    (4) Prior period adjustments. Only the following two items of profit 
and loss shall be accounted for and reported as prior period adjustments 
and excluded from the determination of net income for the current 
period:
    (1) Correction of an error in the financial statements of a prior 
period, and
    (2) Adjustments that result from realization of income tax benefits 
of preacquisition operating loss carryforwards of purchased 
subsidiaries.
    With the exception of the two items just mentioned, all items of 
profit and loss recognized during a period shall be included in the 
determination of net income for that period.
    Note: The carrier shall follow generally accepted accounting 
principles where an interpretation of the rules is needed or obtain an 
interpretation from its public accountant or the Board.
    (5) Accounting Changes. Errors in financial statements result from 
mathematical mistakes, mistakes in the application of accounting 
principles, or oversight or misuse of facts that existed at the time the 
financial statements were prepared. In contrast, a change in an 
accounting estimate results from new information or subsequent 
developments and from better insight or judgment. Correction of an error 
should be accomplished through a prior period adjustment [See 
Instruction 1-2(d)(4)]. Changes in an accounting estimate should be 
accounted for in the period of change (and future period if the change 
affects both)(See Instruction 1-7). A change in an accounting principle 
or accounting entity should be referred to this Board for approval. The 
cumulative effect of a change in accounting principle should ordinarily 
be reflected in the account provided for in determining net income.
    (6) Materiality. As a general standard an item shall be considered 
material when it exceeds 10 percent of annual income (loss) before 
extraordinary items. An item may also be considered in relation to the 
trend of annual earnings before extraordinary items or other appropriate 
criteria. Items shall be considered individually and not in the 
aggregate in determining materiality. However, the effects of a series 
of related transactions arising from a single specific and identifiable 
event or plan of action shall be aggregated to determine materiality.
    (7) Board Approval and Accountant's Letter. Items shall be included 
in the accounts provided for extraordinary

[[Page 18]]

items, unusual or infrequent items, discontinued operations, prior 
period adjustments and cumulative effect of changes in accounting 
principles only upon approval of the Board. If the carrier retains the 
service of an independent accountant, a request for using these accounts 
shall be accompanied by a letter from the independent accountant 
approving or otherwise commenting on the request.
    Note: The carrier may refer to generally accepted accounting 
principles for further guidance in applying paragraph (d) above.

[42 FR 35017, July 7, 1977 as amended at 43 FR 37455, Aug. 23, 1978; 52 
FR 4321, 4324, Feb. 11, 1987]

    1-3 Records. (a) Each carrier shall keep its books of account, and 
all other books, records, and memoranda which support the entries in 
such books of account so as to be able to furnish readily full 
information as to any item included in any account. Each entry shall be 
supported by such detailed information as will permit ready 
identification, analysis, and verification of all facts relevant 
thereto.
    (b) All expenditures including the expense accounts of officers and 
employees shall be supported by vouchers, payrolls, receipted bills, 
canceled checks, receipts for petty cash payments, or other evidences of 
the expenditures incurred.
    (c) The books referred to herein include not only books of accounts 
in a limited technical sense but all other records such as minute books, 
stock books, reports, correspondence, memoranda, etc., which will be 
useful in developing the history of or facts regarding any transaction.
    (d) No carrier shall destroy any books, records, memoranda, etc., 
which support entries to its accounts unless destruction is permitted by 
the regulations governing preservation of records, Part 1220 of this 
chapter.
    (e) In addition to prescribed accounts, clearing accounts, temporary 
accounts, and subdivisions of any accounts may be kept, provided the 
integrity of the prescribed accounts is not impaired.
    (f) Cost detail shall be maintained by cost centers for purposes of 
cost assignments effective 1-1-79. This provides for cost control and 
cost planning at any designated area of responsibility. These cost 
centers shall be similarly defined as the railroads' existing 
responsibility centers. Cost center information shall therefore be kept 
at the same level of detail presently collected, categorized, and 
maintained in railroad internal managerial accounting systems. This 
detailed information shall not be reported to the Board on an ongoing 
basis. However, the carrier shall keep the detailed information to 
provide a ready analysis and verification of the costs collected by cost 
center.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4324, Feb. 11, 1987; 61 
FR 9113, Mar. 7, 1996]

    1-4 Accounting period. (a) Each carrier shall keep its books on a 
monthly basis so that known transactions, as nearly as may be 
ascertained, shall be entered in the accounts not later than 60 days 
after the last day of the period for which the accounts are stated, 
except that the time within which the final entries for the year ending 
December 31 shall be made may be extended to such date in the following 
March as shall not interfere with the preparation and filing of annual 
report.
    (b) A trial balance of the general ledger accounts shall be prepared 
at the close of each month setting out the account number, title, and 
amount of each ledger account. (Mechanical, electronic or automatic data 
processing printout documentation producing the equivalent of manually 
prepared trial balances shall identify balances by account numbers.) At 
the end of the calendar year, the revenue, expense, and other income 
accounts shall be closed into retained earnings account, and the balance 
sheet account balances shall be brought forward to the general ledger 
for the succeeding year.
    (c) No changes shall be made in the accounts for periods covered by 
quarterly and annual reports that have been filed with the Board unless 
the changes have first been authorized by the Board.
    1-5 Accrual method of accounting. The accounting for operating 
revenues, operating expenses, income and other items each month and year 
shall be, as nearly as practicable, upon the basis of accruals 
consistently applied. Any change in practice of accounting for

[[Page 19]]

accruals or any unusual accruals involving material amounts shall be 
reported promptly to the Board.

    1-6 Charges to be just and reasonable. All charges to the accounts 
prescribed in this system of accounts for carrier property, operating 
revenues, operating and maintenance expenses, and other carrier 
expenses, shall be just, reasonable and not exceed amounts necessary to 
the honest and efficient operation and management of carrier business. 
Payments shall not exceed the fair market value of goods and services 
acquired in an arm's length transaction. Any payments in excess of such 
just and reasonable charges shall be included in account 551, 
Miscellaneous income charges.
    1-7 Changes in accounting estimates. Changes in accounting estimate 
arising during the current year which are applicable to prior years 
shall be included in the same account which would have been charged or 
credited if the item had been taken up or the adjustment made in the 
year to which it pertained. [See Instruction 1-2(d)(5) for Accounting 
Changes].

[42 FR 35017, July 7, 1977, as amended at 52 FR 4324, Feb. 11, 1987]

    1-8 Accounting for computer systems and word processing costs. (a) 
Capitalized costs for computer systems and word processing equipment 
shall be charged to property account 59, when such costs are not 
dedicated to a particular function (See Account 59). Related 
depreciation expenses for capitalized costs shall be charged to account 
62-23-00, Depreciation, Other Equipment.
    (b) Repair and maintenance costs related to computer systems and 
word processing equipment shall be charged to function 46 of the Other 
equipment subactivity by appropriate natural expense (labor, material, 
purchased services, other). Repairs performed by an outside company 
shall be charged to operating expense account 39-23-46.
    (c) Operating costs related to computer systems and word processing 
equipment shall be charged to function 87, Management services and data 
and word processing, when the equipment benefits more than one activity. 
When the equipment benefits one activity only, such operating costs 
shall be charged to the activity/function benefited.

[52 FR 4324, Feb. 11, 1987]

    1-9 Transactions with affiliated companies. (a) The records and 
supporting data of all transactions with affiliated companies shall be 
maintained in a separate file. The types of transactions referred to in 
this paragraph are for management services or any other type of services 
rendered, sale or use of facilities or any other type of assets or 
property. The file shall be maintained so as to enable the carrier, upon 
a Board request, to furnish accurate information with supporting 
documentation about particular transactions within 15 days of the 
request. We do not intend the file to include data relating to ordinary 
carrier operations (e.g. lawful tariff charges or interchange of 
equipment).
    (b) Each bill rendered by an affiliated company shall state 
specifically the basis used for determining charges, unless the file 
contains the information to support the specific basis for charges.
    (c) Punched cards, magnetic tapes, discs, or other machine-sensible 
devices used for recording, consolidating, and summarizing accounting 
transactions and records with a carrier's electronic or automatic data 
processing system may constitute a file within the meaning of this 
instruction.
    (d) The carrier shall record, as the cost of assets or services 
received from an affiliated supplier, the invoice price (plus any 
incidental costs related to those transactions) in those cases where the 
invoice price can be determined from a prevailing price list of the 
affiliated supplier available to the general public in the normal course 
of business. If no such price list exists, the charges shall be recorded 
at the lower of their cost to the originating affiliated supplier (less 
all applicable valuation reserves in case of asset sales, or their 
estimated fair market value determined on the basis of a representative 
study of similar competitive and arm's-length or bargained transaction. 
Any difference between actual transaction price and the above,

[[Page 20]]

as well as charges that are not transportation related, shall be 
considered of a financing nature and shall be recorded, accordingly, as 
nonoperating charges or credits. (See instruction 1-6.)
    (e) Nothing contained herein shall be construed as restraining the 
carrier from subdividing accounts (see instruction I-3(e)) for the 
purpose of recording separately transactions with affiliated companies.
    (f) Carriers reporting information on a consolidated or combined 
basis in railroad Annual Report Form R-1 shall maintain a file with 
appropriate records and supporting data. This shall include work sheets 
showing revenues, expenses, earnings, investment in assets and 
accumulated depreciation for all affiliated railroads and rail-related 
affiliated companies. The work sheets shall also disclose any 
eliminations. Carriers shall also disclose the methodology used to 
support segregation of rail-related or other items as appropriate. 
Further, a file shall be maintained to support and reconcile entity 
sales, transfers and reclassifications as well as taxes deducted from 
gains or losses.

[42 FR 35017, July 7, 1977, as amended at 53 FR 46620, Nov. 18, 1988]

    1-10 Accounting for income taxes. (a) The interperiod tax allocation 
method of accounting shall be applied where material timing differences 
(see definition 17(e)) occur between pretax accounting income and 
taxable income. Carriers may elect, as provided by the Revenue Act of 
1971, to account for the investment tax credit by either the flow 
through method or the deferred method of accounting. See paragraphs (d) 
and (e) below. All income taxes (Federal, state and other) currently 
accruable for income tax return purposes shall be charged to account 
556, Income taxes on ordinary income, and account 590, Income Taxes on 
Extraordinary Items, as applicable.
    (b) Under the interperiod tax allocation method of accounting the 
tax effect of timing differences (see definition 17) originating in the 
current accounting period are allocated to income tax expense of future 
periods when the timing differences reverse. Similar timing differences 
originating and reversing in the current accounting period should be 
combined into groups and the current tax rates applied to determine the 
tax effect of each group. A carrier shall not apply other than current 
tax rates in determining the tax effect of reversing differences except 
upon approval of the Board. When determining the amount of deferred 
taxes, rather than computing state and other taxes individually by 
jurisdiction, the Federal income tax rate may be increased by a percent 
equivalent to the effect of taxes imposed by the jurisdictions. In 
classifying a deferred charge or credit as current or noncurrent a 
carrier shall follow the classification criteria used for the related 
asset or liability which caused the timing difference. A deferred charge 
or credit that is not related to an asset or liability because (a) there 
is no associated asset or liability or (b) reduction of an associated 
asset or liability will not cause the timing difference to reverse shall 
be classified based on the expected reversal date of the specific timing 
difference. Such classification disregards any additional timing 
differences that may arise and is based on the criteria used for 
classifying other assets and liabilities.
    (c) The future tax benefits of loss carryforwards shall normally be 
recognized in the year in which such loss is applied to reduce taxes. 
Only in those unusual instances when realization is assured beyond any 
reasonable doubt should the future tax benefits of loss carryforwards be 
recognized in the year of loss. The tax effects of any realizable loss 
carrybacks shall be recognized in the determination of net income (loss) 
of the loss periods; appropriate adjustments of existing net deferred 
tax credits may also be necessary in the loss period.
    (d) Carriers electing to account for the investment tax credit by 
the flow through method shall credit account 556 Income taxes on 
ordinary income, or account 590, Income taxes on extraordinary items, as 
applicable, and charge account 760, Federal income taxes accrued, with 
the amount of investment tax credit utilized in the current accounting 
period. When the flow

[[Page 21]]

through method is followed for the investment tax credit, account 557, 
Provision for Deferred Taxes, shall reflect the difference between the 
tax payable (after recognition of allowable investment tax credit) based 
on taxable income and tax expense (with full recognition of investment 
tax credit that would be allowable based on accounting income) based on 
accounting income.
    (e) Carriers electing to account for the investment tax credit by 
the deferred method shall concurrently with making the entries 
prescribed in (d) above charge account 557, Provision for deferred 
taxes, or account 591, Provision for deferred taxes--extraordinary item, 
as applicable, and shall credit account 786, Accumulated deferred income 
tax credits, with the investment tax credit utilized as a reduction of 
the current year's tax liability but deferred for accounting purposes. 
The investment tax credit so deferred shall be amortized by credits to 
account 557, Provision for deferred taxes.

    Note A: Any change in practice of accounting for the investment tax 
credit shall be reported promptly to the Board. Carriers desiring to 
clear deferred investment tax credits because of a change from the 
deferral method to the flow though method shall submit the proposed 
journal entry to the Board for consideration and advice.
    Note B: The carrier shall follow generally accepted accounting 
principles where an interpretation of the accounting rules for income 
taxes is needed or obtain an interpretation from its public accountant 
or the Board.

[42 FR 35017, July 7, 1977, as amended at 47 FR 12350, Mar. 23, 1982; 52 
FR 4321, Feb. 11, 1987; 67 FR 57533, Sept. 11, 2002]

    1-11 Items in texts of accounts. The items appearing in the texts of 
the accounts or elsewhere herein are for the purpose of more clearly 
indicating the application of the prescribed accounting. The items are 
intended to be representative, but not exhaustive. The appearance of an 
item in the text of a primary account warrants the inclusion of the item 
in the account mentioned only when the whole text also indicates 
inclusion inasmuch as the same item frequently appears in more than one 
primary account. The proper entry in each instance must be determined by 
the entire text of each primary account.
    1-12 Distribution of pay and expenses of employees. (a) The pay and 
expenses of officers or employees regularly assigned to specific duties 
who perform incidental services of a different nature involving small 
expense may be included in the appropriate expense accounts for the 
duties to which such officers or employees are regularly assigned.
    (b) When it is necessary to apportion the pay of officers and 
employees among various accounts, the carrier shall apportion the pay on 
the basis of the directly assignable pay to the various accounts.

    1-13 Payroll related expenses. (a) Fringe benefits (account series 
12-00-00) distributed to the activities using one of the following 
techniques (in order of preference):
    (1) Apply appropriate factors to the total of the fringe expense 
account, in such a way as to distribute an equitable proportion of cost 
to each activity. These factors shall be developed to take into account 
variables such as the following:
    (i) The effect of seniority on the expense. For example, profit 
sharing or pensions may be available to only certain categories of 
employees, which may be more predominant in one activity than another.
    (ii) The effect of the type of work performed. For example, 
workmen's compensation expense may vary for each category of employees 
because of the rate charged or the claims experience of the category.
    (iii) Any other variable which may have an appreciable effect on the 
equity of the apportionment.
    (2) Distribute the amount in the same proportion as the pay charged 
to each activity in account series 11-00-00 (salaries and wages).
    (3) Distribute the amounts using any other equitable basis which the 
carrier can substantiate.
    (b) All carriers shall be prepared to describe the basis of 
apportionment used to distribute expenses included in this instruction.
    (c) Any carrier which finds it impracticable to distribute expenses 
as required by this instruction should furnish the Board with full 
particulars of

[[Page 22]]

the conditions which prevent the proper distribution. Upon receipt of 
such information carrier will be advised of the procedure to be 
followed.

    1-14 Submission of questions. To maintain uniformity of accounting, 
carriers shall submit questions of doubtful interpretation to the Board 
for consideration and decision.
    1-15 Transfers from government authorities. When a Federal, State, 
or municipal government transfers cash or other assets to a railroad, 
the transaction shall be accounted for in accordance with the provisions 
set forth hereunder.
    (a) The following forms of government transfers shall be included in 
account 502, Railway Operating Revenues--Transfers from Government 
Authorities for Current Operations when received:
    (1) Payments as reimbursement for operating losses sustained on a 
specific line, or in a certain region. Examples include support of 
commuter operations of a railroad, and local rail service assistance 
subsidies granted to a railroad under authority of the Railroad 
Revitalization and Regulatory Reform Act of 1976;
    (2) Subsidies designated by the donor to offset operating expenses 
of the railroad, and
    (3) Subsidies which may be applied at the discretion of the 
recipient to operating expenses and/or operating property.
    (b) Government transfers relating to the acquisition, addition to, 
or improvement of depreciable operating property shall be included in 
account 783, Deferred Revenues--Transfers from Government Authorities 
when received. Account 783 shall be periodically charged, and account 
503, Railway Operating Revenues--Amortization of Deferred Transfers from 
Government Authorities shall be credited with amounts equal to the 
depreciation costs of the assets to which they apply.
    (c) Government transfers in the form of, or designated for the 
purchase of nondepreciable operating property shall be included in 
account 796, Other Capital Surplus in the manner described in the text 
of that account.
    (d)(1) Transfers from the Federal Government to Amtrak and ConRail 
relating to the acquisitions, addition to, or improvement of depreciable 
or nondepreciable operating property shall be included in account 796 in 
the manner described in the text of that account.
    (2) Transfers from the Federal Government to Amtrak and ConRail 
other than those described in paragraph (d)(1) shall be accounted for in 
accordance with paragraph (a) of this section.
    (e) The provisions of this section do not apply to the following 
forms of government transfers:
    (1) Government contributions in connection with construction 
projects in which government agencies and railroads participate. 
Transfers of this type shall be accounted for in accordance with the 
provisions of instruction 2-17. Paragraph (b) of that instruction lists 
applicable construction projects.
    (2) Government payment for specific services rendered by the carrier 
in transporting property or persons by rail line other than services 
described in paragraph (a)(1) of this section. Such payments shall be 
included in account 501, Railway Operating Revenues (Exclusive of 
Transfers from Government Authorities).
    (3) Government transfers relating to other than carrier operations.
    (4) Government transfers in exchange for debt and/or equity 
securities of recipients.
    (f) Government transfers shall generally be recorded when made 
available to the railroad. However, transfers relating to specific 
operations shall be recorded as earned.
    (g) Government transfers in the form of assets other than cash shall 
be recorded at fair value when received.

[43 FR 30558, July 17, 1978, as amended at 52 FR 4321, Feb. 11, 1987]

    1-16 Business entertainment expenses. (a) Business entertainment 
expenses are to be accounted for as operating expenses when incurred in 
conjunction with sales or marketing related activities. Sales or 
marketing related activities are those that emphasize a carrier's 
ability to provide efficient, timely and competitive service. These 
activities include outlays designed to promote new business as well as 
outlays incurred in maintaining existing

[[Page 23]]

business. The entertainment expenditures must be reasonable in relation 
to the business conducted and the business purpose for the entertainment 
must be adequately supported. Examples of this type of activity include 
the following:
    (1) Salespersons' salaries and travel expenses, advertising, 
promotional and educational material;
    (2) The conduct of shipper symposiums, conferences, meetings and 
traffic related functions;
    (3) The use of direct mail solicitations and the publication and 
distribution of routing guides and service directories;
    (4) Incidental promotional materials such as road atlases, 
calendars, pens, scratchpads, and other materials of nominal value;
    (5) The conduct of business oriented lunches and dinners, public 
affairs programming, conferences and customer service calls;
    (6) Sponsoring sales promotion functions, involving a number of 
customers or potential customers.

It must be noted that an activity listed above is not to be 
automatically accounted for as an operating expense. A carrier must be 
able to justify that an activity was primarily sales or marketing 
related.
    (b) Business entertainment expenses are to be accounted for as non-
operating expenses when they cannot be shown to be related to the sales 
or marketing activity. These are expenses that are primarily related to 
recreation or to the convenience and comfort of the individuals rather 
than to the transaction of business. Examples of this type of activity 
include the following:
    (1) Recreational or resort entertainment, including but not limited 
to, fishing, hunting, tennis, golfing, skiing or other sporting or 
recreational trips or outings;
    (2) Expense paid transportation in any carrier owned, leased or 
furnished vehicles, planes, helicopters, boats, yachts, or other 
methods;
    (3) Expense paid lodging in any carrier owned, leased or furnished 
motels, hotels, apartments, condominiums, lodges, rooms and other places 
of overnight accommodation;
    (4) Paid admission to any sporting, cultural, educational, 
recreational, or entertaining occurrence or event;
    (5) Gifts such as athletic equipment, food or liquor, beverages of 
all types, smoking materials, clothing and personal accessories;
    (6) The furnishing of lunches, dinners, appetizers or beverages 
where there is no true business purpose;
    (7) Social occasions such as holiday parties.

It must be noted that an activity listed above is not to be 
automatically accounted for as a non-operating expense. If a carrier can 
justify that the activity was primarily sales or marketing related, it 
may be accounted for as an operating expense.

    Note: The examples listed above are not inclusive, but are intended 
as a guide to give carriers an indication of what will or will not be 
permitted to be recovered through the rate structure. In all instances 
the burden of proof will fall on the carrier involved.

[47 FR 9467, Mar. 5, 1982, as amended at 52 FR 4321, Feb. 11, 1987]

    1-17 Disclosure guideline. In addition to the accounting policies 
presented in these regulations, all disclosures relating to APB Opinions 
and FASB Statements adopted by the Board are required.

[52 FR 4324, Feb. 11, 1987]
    1-18 Distribution of expenses for material, tools, fuel, lubricants, 
purchased services and general. (a) These expenses shall be assigned 
directly to activities based on usage whenever possible.
    (b) When it is necessary to apportion these expenses to two or more 
activities they shall be equitably apportioned only to the activities in 
which they are actually used or to the activities they support.

[67 FR 57533, Sept. 11, 2002]



INSTRUCTIONS FOR PROPERTY ACCOUNTS--Table of Contents



    2-1 Items to be charged. (a) To the road and equipment property 
accounts shall be charged the cost of purchasing land, the cost of 
purchasing and constructing buildings, facilities and equipment, and the 
cost of additions and betterments to property, Cost

[[Page 24]]

means the amount of cash disbursed, or the fair value of other assets 
distributed, or the present value of amounts to be paid. Where the fair 
market value of resources given up (assets, services or items of 
stockholder's equity) is not clearly determinable, the cost may be 
determined by the fair market value of the resources acquired. The 
carrier shall be prepared to furnish the Board with the particulars of 
its method of determining cash value when the consideration is other 
than monetary. The amount of liabilities incurred with suppliers in the 
normal course of business, which are due in customary trade terms not 
exceeding approximately one year, shall be recorded at the maturity 
value. Acquisition date is the date title passes to the carrier.
    (b) The cost of road and equipment purchased under a plan involving 
other deferred payments (debt or capital lease) shall be recorded at the 
discounted present value of the payment, net of executory costs such as 
insurance, maintenance, and taxes. The interest rate used to discount 
the payments should be the prevailing market rate for similar debt 
instruments of issues with similar credit ratings. In any event, the 
rate used for valuation purposes will normally be at least equal to the 
rate at which the carrier can obtain financing of a similar nature from 
other sources at the date of the transaction (the carrier's incremental 
borrowing rate). In the case of a capital lease, when it is practical to 
ascertain the implicit rate computed by the lessor, and that rate is 
less than the carrier's incremental borrowing rate, the carrier should 
use the implicit rate. Acquisition date for a capital lease is the date 
the lease agreement is signed. If the property covered by the lease has 
yet to be constructed or has not been acquired by the lessor at the date 
the lease agreement or commitment is signed, the acquisition date shall 
be the date the property under construction is completed or the date the 
property not yet acquired is acquired by the lessor. (See Instruction 2-
20.)
    (c) Where actually incurred, interest cost is to be added to the 
cost of road and equipment deemed qualifying assets during the period of 
time required to get them ready for their intended use (acquisition 
period). Qualifying assets are those that are (1) either constructed or 
otherwise produced for a carrier's own use (including assets constructed 
or produced for the carrier by others for which deposits or progress 
payments have been made) or (2) assets intended for sale or lease that 
are constructed or otherwise produced as discrete projects. The amount 
of interest to be capitalized for qualifying assets shall be based upon 
the average amount of accumulated expenditures for the asset during the 
acquisition period at the rate used on specific new borrowings 
associated with the qualifying asset. If average accumulated 
expenditures for the asset exceed the amount of specific new borrowings 
associated with the asset, the rate to be applied to such excess shall 
be a weighted average of the rates applicable to other borrowings of the 
enterprise. The total amount of interest cost capitalized in an 
accounting period shall not exceed the total amount of interest cost 
incurred by the enterprise during that period.
    (d) Suitable records shall be maintained showing expenditures during 
the year for original road and equipment and road extensions; for merger 
and purchase of existing lines and reorganizations; for additions and 
betterments; and credits for property retirement.
    (e) When the carrier exchanges road and equipment for other road and 
equipment with no other consideration involved, the road and equipment 
received shall be recorded at the ledger value of the road and equipment 
relinquished. Where the carrier receives a monetary consideration in the 
exchange, the carrier shall recognize gain on the exchange to the extent 
that the consideration received exceeds a proportionate share of the 
recorded cost of the road and equipment surrendered. The portion of the 
cost applicable to the realized amount shall be based on the ratio of 
the monetary consideration to the total consideration received (monetary 
consideration plus the estimate fair value of the road and equipment 
received) or, if more clearly evident, the fair value of the road and

[[Page 25]]

equipment transferred. Where the carrier pays a monetary consideration 
in the exchange, it shall not recognize any gain on the transaction but 
shall record the road and equipment received at the amount of the 
monetary consideration paid plus the recorded costs of the road and 
equipment surrendered. If a loss is indicated by the terms of an 
exchange transaction, the carrier shall recognize the entire loss on the 
exchange. Immaterial gains and losses on these exchanges shall be 
included in account 519, Miscellaneous Income, or 551, Miscellaneous 
Income Charges, as appropriate. Material amounts shall be recorded in 
accordance with Instruction 1-2(d).

[52 FR 4324, Feb. 11, 1987]

    2-2 Minimum rule applicable to additions to property. An exception 
to the rule in Instruction 2-1 is that when the cost of acquisition of 
units of road property and of additions to existing units of road 
property (other than land and tracks) is less than $5,000, such costs 
may be charged to operating expenses. This amount (rounded to the 
nearest $100) will be adjusted by the June Producer Price Index for all 
commodities when an aggregate adjustment is $500 or more. The revision 
will be published in the Federal Register and be effective as of January 
1 of the following year. The carrier shall not parcel expenditures under 
a general plan bringing the accounting for such expenditures within this 
minimum rule. An amount of less than the current minimum capitalization 
level, for the railroad as a whole or for individual property accounts 
may be adopted for purposes of this rule provided the carrier first 
notifies the Board of the amount it proposes to adopt and thereafter 
makes no change in the amount unless authorized by the Board. An amount 
adopted shall be adhered to in reporting property changes for valuation 
purposes.

[55 FR 42016, Oct. 17, 1990]

    2-3 Land. (a) Accounts are provided for the cost of land used in 
transportation operations and also for land used in other than 
transportation operations. When land is retired from transportation 
operations but is retained by the carrier the original cost (estimated, 
if not known) shall be transferred to the account prescribed for 
property used in other than transportation operations. It is not 
contemplated that irregular parcels of land acquired in connection with 
acquisition of right-of-way which have no value as commercial property 
shall be thus transferred, either for the purpose of making right-of-way 
boundaries run more or less regular or for the purpose of eliminating 
from transportation property account the cost of unoccupied lands 
between tracks in yards and terminals. When any land, the cost of which 
is included in the accounts, is sold or otherwise retired, the ledger 
value shall be credited to the appropriate property investment account. 
The profit or loss from sale or loss from retirement or land shall be 
included in the accounts prescribed for such amounts.
    (b) [Reserved]

[42 FR 35017, July 7, 1977, as amended at 52 FR 4324, Feb. 11, 1987]

    2-4 Structures. Accounts are provided for the cost of several 
classes of buildings and facilities, including fixtures permanently 
attached to and made a part thereof. When a building or other structure 
is used or held primarily for transportation operations and is an 
integral part of the carrier's transportation plant, but a part thereof 
is used or held for commercial purposes such as for rental to others or 
for use in other than transportation operations by the carrier, the 
entire cost of the building or other structure is includable in the 
accounts for transportation property. When a building or other structure 
is used or held primarily for commercial purposes or for use in other 
than transportation operations by the carrier, the entire cost of the 
building or structure is includable in account 737, Property used in 
other than carrier operations. Reclassification of property from its 
primary classification as transportation or other than transportation 
property, as the case may be, to the other classification is not 
required where changes in use are of a temporary nature or for a short 
period of time. The accounting for costs of maintenance, taxes, other 
operating

[[Page 26]]

costs, and for revenues and rentals shall be consistent with the 
classification of the building or other structure.
    2-5 Equipment. Accounts are provided for several classes of 
equipment, such as locomotives, passenger-train cars, freight-train 
cars, highway revenue equipment, work equipment, floating equipment, and 
the necessary appurtenance, furniture, and fixtures first to equip for 
service, including the cost of inspection, setting up, and trying out, 
and transportation over foreign lines; also the cost of additions and 
betterments, such as improved appliances, parts, or appurtenances. When 
retired equipment is held without being torn down, the estimated value 
of the salvage therefrom shall be included in account 741, Other assets, 
until the salvage is recovered, except that the estimated scrap value of 
retired equipment held for sale in the ordinary course of business, and 
on which sale and realization of the proceeds within one year is 
assured, is includable in account 713, Other current assets.
    2-6 Components of construction cost. The cost of constructing 
property includable in the property accounts shall include the direct 
and other costs as described hereunder.
    (a) Cost of labor. This includes the amount paid for labor expended 
by the carrier's own employees, including the cost of labor expended for 
preliminary work, such as sinking test holes or making soundings for 
tunnels, grading, buildings, and other structures; and cost of labor 
expended in laying and taking up tracks for temporary use in 
construction, except the cost of labor expended on tracks provided for 
the protection of traffic during the progress of addition and betterment 
work. The cost of labor shall also include the accounting company's 
expenditures for associated fringe benefits, such as vacation and 
holiday pay, health and welfare group insurance, pensions and retirement 
plans, payroll taxes and unemployment insurance. Office expenses and 
traveling and other personal expenses of employees, when borne by the 
carrier, shall be considered a part of the cost of the labor, as shall 
also the cost of fidelity bonds and employer's liability insurance 
premiums. When officers or employees are especially assigned to 
construction work their pay and their traveling and incidental expenses 
while thus engaged shall be included in the cost of the work. No charge 
shall be made against road and equipment accounts for the pay of 
officers and employees who merely render services incidentally in 
connection with extensions, additions, or betterments, although 
traveling and incidental expenses incurred by such officers and 
employees solely on account of such work shall be included in the 
account to which the cost of the work is chargeable.
    (b) Cost of materials and supplies. This includes the purchase price 
of materials and supplies, including small tools, at the point of free 
delivery plus the cost of inspection and loading assumed by the carrier; 
a suitable proportion of store expenses; also sales and excise taxes on 
materials and supplies except as otherwise provided in the text of 
account 712, Material and supplies. In calculating the cost of materials 
used, proper allowance shall be made for the value of unused portions 
and of cuttings, turnings, borings, etc.; for the value of the material 
recovered from temporary tracks, scaffolding, cofferdams, and other 
temporary structures used in construction; and for the value of small 
tools recovered and used for other purposes.
    (c) Cost of work-train service. This includes amounts paid to others 
for rent and maintenance of equipment used; cost of labor of enginemen, 
trainmen, and enginehousemen, including wages of engine crews and train 
crews held in readiness for such service; and cost of fuel and other 
supplies consumed in connection with the operation of work trains. It 
shall also include the cost of maintaining the carrier's own equipment 
used in construction service. Amounts representing constructive rent or 
return upon the investment in owned equipment shall not be included as a 
part of the cost of work-train service.
    (d) Cost of special machine service. This includes the cost of labor 
expended and of materials and supplies consumed in maintaining and 
operating power shovels, scrapers, rail unloaders, ballast unloaders, 
pile drivers, dredges, ditchers, weed burners, and other

[[Page 27]]

labor-saving machines; also rents paid for use of such machines.
    (e) Cost of transportation. This includes the amounts paid to other 
companies or individuals for the transportation of men, materials and 
supplies, special machine outfits, appliances, and tools in connection 
with construction. Freight charges paid foreign lines for the 
transportation of construction material to the carrier's line shall be 
included, so far as practicable, as a part of the cost of the material.
    (f) Cost of contract work. This includes amounts paid for work 
performed under contract by other companies, firms, or individuals, and 
costs incident to the award of the contract.
    (g) Cost of protection from casualties. This includes expenditures 
for protection against fire, such as payments for discovery or 
extinguishment of fires, cost of detecting and prosecuting incendiaries, 
witness fees in relation thereto, amounts paid to municipal corporations 
and other for fire protection, and other analogous items of expenditure 
incurred directly in connection with construction work.
    (h) Cost of injuries and damages. This includes expenditures on 
account of injuries to persons or damage to property when incurred 
directly as a result of construction projects, and shall be included in 
the cost of the work in connection with which the injury or damage 
occurs. It also includes that portion of premiums paid for insuring 
property applicable to the period prior to the completion or coming into 
service of the property insured. Insurance recovered on account of 
compensation paid for injuries to persons incident to construction shall 
be credited to the accounts to which such compensation is charged, and 
insurance recovered on account of damages to property incident to 
construction shall be credited to the accounts chargeable with the 
expenditures necessary for restoring the damaged property. The cost of 
injuries and damages incident to the removal of old structures, or parts 
thereof, shall be charged to operating expenses, except that such costs 
in connection with the removal of old structures which are incumberances 
on newly acquired lands shall be included in accounts 2, Land for 
transportation purposes, or 3, Grading, as appropriate.
    (i) Cost of privileges. This includes compensation for temporary 
privileges, such as the use of public property or streets, in connection 
with the construction of the property of the carrier.
    (j) Material excavated. The cost of disposing of material excavated 
in connection with construction shall be considered as a part of the 
cost of work, except that when such material is used for filling, the 
cost of removal and dumping shall be equitably apportioned between the 
work in connection with which the removal occurs and the work in 
connection with which the material is used.
    (k) Interest cost. [See Instruction 2-1(c)].

[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]

    2-7 Additions to and retirements of property--General. (a) In 
accounting for additions to and retirements and replacements of road and 
equipment property (excluding land) used in transportation operations, 
such property changes shall be considered as consisting of: (1) Units of 
property, and (2) other than units of property as prescribed in 
Instruction 2-19. Track property changes will be distinguished by units 
of property as approved by the Commission.
    (b) The cost of removal of retired property, both depreciable and 
other than depreciable, when borne by the carrier, shall be charged, as 
appropriate, to account 11-13-39, Personnel--Salaries and Wages--Way and 
Structures--Other--Dismantling retired property, or 11-23-39. 
Personnel--Salaries and Wages--Equipment--Other Equipment--Dismantling 
retired property, and other appropriate accounts (including 
subactivities 11 and 12). \1\
---------------------------------------------------------------------------

    \1\ The references to solely related freight operating expense 
activity/subactivity numbers and titles used throughout the system are 
for convenience and brevity. Refer to the specific account texts to 
determine the appropriate solely related passenger and/or common expense 
activity/subactivity numbers.
---------------------------------------------------------------------------

    (c) An equitable proportion of a balance in property accounts 76, 
Interest

[[Page 28]]

During Construction, and 80, Other elements of investment, applicable to 
retired property shall be cleared from these accounts concurrently with 
the retirement accounting. Unless provided for otherwise, interest costs 
shall be capitalized in accordance with generally accepted accounting 
principles.
    (d) When retired property is held and not removed, the estimated 
value of the salvage therefrom shall be included in account 741, Other 
assets, until the salvage is recovered, except that the estimated scrap 
value of retired property held for sale in the ordinary course of 
business, and on which sale and realization of the proceeds within one 
year is assured, is includible in account 713, Other current assets.
    (e) The accounting for track additions and retirements (with and 
without replacement) shall be guided by Instruction 2-10.

[42 FR 35017, July 7, 1977, as amended at 46 FR 10920, Feb. 5, 1981; 48 
FR 7183, Feb. 18, 1983; 49 FR 2254, Jan. 19, 1984; 52 FR 4321, Feb. 11, 
1987]

    2-8 Additions to and retirements of units of property. (a) When a 
unit of road or equipment property is added to the plant, the cost 
thereof shall be included in the appropriate primary account. When a 
unit of property is retired, with or without replacement, the cost 
thereof shall be written out of the property account at time of 
retirement.
    (b) When a unit of road or equipment property (or a minor item not 
replaced) classified as depreciable and included in the accounts 
prescribed for depreciable property is retired the service value shall 
be charged to account 735, Accumulated depreciation; Road and equipment 
property.
    (c) When road property (other than a minor item constituting 
repairs) classified as other than depreciable property is retired, the 
cost thereof shall be cleared from the property account and the service 
value shall be charged to account 61-13-99, General--Other Expenses--Way 
and Structures--Other--Other. When the retirement requires Board 
approval, the carrier shall clear the cost from the property account 
upon the effective date of the abandonment. Subactivities 11 and 12 also 
apply.
    (d) When property included in the depreciable accounts but excluded 
from the depreciation base is retired, the service value (including 
engineering expenditures assignable to retired property but not included 
in the depreciation base) shall be charged to operating expense.
    2-9 Additions and retirements of other than units of property. (a) 
When an item of road or equipment property, other than a complete unit, 
is added to the plant and the addition is not a replacement, the cost 
thereof shall be accounted for in the same manner as an addition of a 
complete unit of property, subject to the minimum rule applicable to 
road property (see Instruction 2-2). When an item of property other than 
a complete unit (minor item) is replaced, independent of the complete 
unit of which it is a part, the cost of replacement shall be treated as 
maintenance and charged to operating expenses. If the replacement 
constitutes an improvement then the cost of replacement should be 
accounted for as a rebuilding expenditure under Instruction 2-12.
    (b) When second-hand property acquired is in such physical condition 
that it is necessary to rehabilitate the property to bring it up to the 
standard required by the carrier, the cost of such rehabilitation shall 
be included in the appropriate account for the property.

[42 FR 35017, July 7, 1977, as amended at 55 FR 42016, Oct. 17, 1990]

    2-10 Additions to and retirements of track.
    (a) When track or its components are added to the plant, the cost 
shall be included in the track primary account. When track components 
are replaced as part of a track replacement program, the replacement 
cost shall be accounted for as an addition to the track property 
account. The cost of track components which are retired with or without 
replacement shall be written out of the track property account at the 
time of retirement.
    (b) When track is retired the service value (ledger value less net 
salvage) shall be charged to account 735, Accumulated depreciation; Road 
and equipment property.

[[Page 29]]

    (c) All repairs of tracks shall be accounted for as operating 
expenses.
    (d) Track investment written out of the accounts shall be at 
original cost or estimated standard or average cost for that density 
category. Material to be reused shall be put in an investment pool at 
unrecovered cost and, when reused, included in the appropriate density 
category at the average cost of the investment pool.

[48 FR 7183, Feb. 18, 1983]

    2-11 Expenses in connection with additions and betterments. The cost 
of removing old material from equipment and from buildings, bridges, 
wharves, tracks, and other fixed improvements, shall be charged to the 
appropriate operating expense accounts. Such charges shall include the 
cost of removing old foundations and filling old excavations, and 
restoring condition of grounds after addition and betterment work; and 
maintaining or protecting traffic during the progress of addition and 
betterment work, including the cost of constructing, maintaining, and 
removing temporary tracks required for maintaining traffic during the 
progress of the work.

[42 FR 35017, July 7, 1977. Redesignated at 48 FR 7183, Feb. 18, 1983]

    2-12 Units of property rebuilt or converted--(a) Rebuilding 
expenditures. Carriers shall be governed by the following provisions 
when determining and accounting for depreciable road and equipment 
property rebuilding expenditures:
    (1) Rebuilding expenditures are those cost actually incurred which 
substantially extend the service life or substantially increase the 
utility of depreciable road and equipment property. The rebuilding 
expenditures shall be material in nature relative to the current 
replacement cost of a similar new unit of road or equipment property. 
Expenses resulting from delayed maintenance and repairs shall not be 
considered in determining materiality.
    (2) The phrase extend the service life means to extend the life of a 
property unit past its estimated service life.
    (3) The term increased utility means that the road or equipment 
property has become more useful, more efficient, more durable, or has 
greater capacity.
    (4) Rebuilt or converted road or equipment property shall be 
accounted for as an addition to the appropriate property accounts, with 
the old units accounted for as retired from service. The charge to the 
appropriate property accounts shall be composed of (i) the cost 
(estimated if necessary) less a fair allowance for depreciation, or 
salvage value, whichever is lower, of the parts reused, (ii) the cost of 
labor expended in rebuilding or in the conversion process, (iii) the 
cost of additional materials applied, and (iv) any other expenses 
incurred directly with the rebuilding or conversion. In no case shall 
the total amount charged to the property accounts for these units exceed 
the current replacement costs of similar new units that would be used 
for the same purpose. When a unit of road property or equipment is 
transferred from one class of service to another, with or without 
physical conversion, the unit shall be accounted for as retired from its 
original account and be recorded in a primary investment account 
appropriate to its new class of service.
    (5) If it is necessary to repair the secondhand or reused parts 
remaining in a rebuilt unit, the repair cost may be added to the value 
assigned parts in determining the related cost to be capitalized. 
Associated dismantling costs shall be included in operating expenses.
    (b) Repair expenses. Expenses pertaining to road and equipment 
property, which represent normal or delayed repairs and maintenance, 
shall be expensed in the year incurred.
    (c) File and Storage. Carriers shall keep records of each rebuilding 
program readily available. These records shall be provided to 
representatives of the Board when requested. The retention period shall 
be as required by 49 CFR part 1220, Preservation of Records.

[44 FR 67426, Nov. 26, 1979. Redesignated at 48 FR 7183, Feb. 18, 1983, 
and amended at 52 FR 4321, Feb. 11, 1987]

    2-13 Changes in line of road and relocation of yard tracks.
    (a) When changes are made in a line of road for the purpose of 
reducing curves or grades, or to eliminate

[[Page 30]]

bridges, tunnels, tracks in the installation of a centralized traffic 
control system, or other physical features, the part of the line so 
changed shall be considered property retired and its ledger value 
credited to the property accounts. The new line of road, including land, 
grading, ballast, track elements, and other transportation facilities 
serving the road shall be considered an addition and the cost charged to 
the property accounts. The cost of track changes which do not involve 
change in the existing roadbed shall be charged to operating expenses, 
even though the tracks may be dismantled in the process, but the 
resulting track extensions or reductions shall be accounted for as 
additions or retirements as appropriate.
    (b) The cost of shifting or rearranging tracks within a yard shall 
be charged to operating expenses, even though the tracks may be 
dismantled in the process, but resulting increases or decreases in 
grading, ballast, or track length shall be accounted for as additions or 
retirements, as appropriate. Where tracks in whole or in part within a 
yard are determined to be no longer permanently used, the ledger value 
of such tracks shall be eliminated from the property account. If yard 
tracks and facilities are constructed in another location to take the 
place of tracks retired, such tracks and facilities shall be accounted 
for as additions and the cost thereof shall be included in the property 
account.

[48 FR 7183, Feb. 18, 1983]

    2-14 Track connections. (a) When the accounting carrier bears the 
construction cost of a connecting track situated on the property of 
another carrier, but acquires the salvage rights to the track, the cost 
of the track construction shall be charged to account 731, Road and 
equipment property.
    (b) When carriers (1) share the cost of constructing a connecting 
track of which a portion is situated on each carrier's right-of-way, and 
(2) own and obtain the salvage rights to the track segment located on 
their respective properties, the construction cost borne by each carrier 
shall be charged to account 731, Road and equipment property.
    (c) The cost of constructing a track connection on the right-of-way 
of another carrier which acquires the ownership of and salvage rights to 
the track, shall be charged by the carrier bearing such cost to accounts 
37-11-00, Purchased service--Joint facility--Debit--Way and Structures--
Running, or 37-12-00, Purchased services--Joint facility--Debit--Way and 
Structures--Switching. The owner carrier shall charge the amount of the 
construction cost to account 731, Road and equipment--property, with 
contra credit to accounts 38-11-00, Purchases services--Joint facility--
Credit--Way and Structures--Running, or 38-12-00, Purchases services--
Joint facility--Credit--Way and Structures--Switching. Material amounts 
for such costs shall be referred to the Board for consideration and 
decision.
    (d) The cost of constructing a side track under a deposit refund 
agreement shall be charged to account 731, Road and equipment property. 
The deposit shall be credited to account 782, Other liabilities. Deposit 
amounts refunded during the agreement period shall be charged to account 
782, Other liabilities. Upon termination of the agreement, the amount of 
any unrefunded deposit shall be credited to the applicable primary 
property accounts on an equitable basis.
    2-15 Merger, consolidation, and purchase of a railway operating 
entity or system. (a) When a railway or portion thereof constituting an 
operating unit or system is acquired by merger or consolidation in a 
pooling of interests or by purchase the cost of acquisition represented 
by cash, capital stock or other securities issued or assumed, 
liabilities assumed, and other consideration, shall be recorded in the 
accounts in the manner stated hereunder. Separate instructions are 
provided for a merger of subsidiaries.
    (b) Pooling of interests:
    (1) When the acquisition results from a merger or consolidation 
constituting a pooling of interests, in which all or substantially all 
of the equity interest in predecessor companies continue, as such, in a 
surviving company or a new company created for the purpose, the road and 
equipment, the other assets, and the liabilities of the predecessor 
companies, together with the balances

[[Page 31]]

in the accumulated amortization and depreciation accounts and the 
retained earnings accounts shall be recorded in the appropriate balance 
sheet accounts at the amounts shown in the accounts of predecessor 
companies, adjusted as may be necessary to conform with the accounting 
rules of the Board. Such adjustments shall be included in retained 
earnings or the other accounts that would have been appropriate had the 
adjustments been made in the books of account of the predecessor 
company.
    (2) When the total par or the stated value of no par capital stock 
issued or outstanding pursuant to the pooling of interests is more than 
the aggregate amount of the capital stock of the separate companies 
before such pooling of interests, the excess shall be charged to account 
795, Other capital, if unrestricted capital is available for such 
purpose; otherwise, the excess shall be charged to retained earnings.
    (3) When the total par or stated value of no par capital stock 
issued or outstanding pursuant to the pooling of interests is less than 
aggregate amount of the capital stock of the separate companies before 
such pooling of interests, the difference for reduction in capital stock 
shall be credited to account 795, Other capital.
    (c) Purchase:
    (1) When the acquisition results from a purchase (except from 
subsidiaries controlled through ownership of the majority share of 
voting stock) including mergers or consolidations other than pooling of 
interests, the amount includible in account 731, Road and equipment 
property, shall be the cost at the date of acquisition to the purchaser 
of the transportation property acquired. The cost assigned the property, 
as well as other assets acquired, shall be the amount of the cost 
consideration given. Where property and other assets are acquired for 
other than cash, including liabilities assumed and shares of stock 
issued, cost shall be determined by either the fair value of the 
consideration given or the fair value of the assets acquired, whichever 
is more clearly evident. In addition to any liabilities assumed, 
provision shall be made for such estimated liabilities as may be 
necessary.
    (2) When the costs of individual units or classes of transportation 
property are not specified in the agreement, the cost assigned such 
property shall be apportioned among the appropriate primary accounts 
using the percentage relationship between the fair values for each class 
of property acquired and the total of such values.
    (d) Merger of subsidiaries:
    The acquisition and merger of property of subsidiaries controlled 
through ownership of the majority shares of voting stock is to be 
accounted for as a pooling of interests or as a purchase depending on 
the circumstances in each case. Where control was initially acquired 
through issuance of capital stock to stockholders of the subsidiary the 
rule applicable to pooling of interests ordinarily is applicable. Where 
control was initially acquired through purchase of stock the rule 
applicable to purchase of property may be appropriate even though the 
shares were purchased gradually from time to time over a period of 
years, in which event recognition of retained earnings since date of 
acquisition assignable to such shares may be proper. The journal entry 
pertaining to acquisition of property of subsidiaries shall be submitted 
to the Board for consideration based on the principles herein and 
procedures for which there is authoritative support, and the accounting 
for the merger shall become final only after approval by the Board.
    2-16 Reorganization of railway. (a) When a railway reorganization or 
receivership has been consummated, the assets acquired, liabilities 
assumed, and the capital stock or other securities issued or assumed, 
and other consideration, shall be recorded in the accounts in the manner 
stated hereunder. An adjustment of capitalization resulting in 
modification and reformation of classes of securities pursuant to 
voluntary action of the holders of securities but not resulting in a 
formal reorganization following a bankruptcy or other receivership 
proceedings (sometimes called a quasi-reorganization) is not covered by 
this instruction 2-16. Reduction of capital stock and other 
contributions to capital by stockholders shall be recorded in accordance

[[Page 32]]

with the instructions in the text of account 795, Other capital.
    (b) The amounts includable in primary road and equipment property 
accounts shall be recorded at cost as shown in the predecessor 
companies' accounts except as otherwise provided in paragraphs (c) and 
(d) of this instruction 2-16. The remaining assets and the liabilities 
of the predecessor companies, adjusted as necessary to conform with the 
accounting rules of the Board, together with the balances in the 
accumulated amortization and depreciation accounts, shall be recorded in 
the appropriate balance sheet accounts.
    (c) When the amount recorded for assets acquired is more than the 
par or stated value of no par capital stock issued and other 
consideration paid, including liabilities assumed, the difference shall 
be applied to such extent as necessary and is available to provide first 
for any deficiency in past accrued depreciation on property classified 
as depreciable; and, second, for any estimated loss from retirement of a 
branch line, segment of track or other important facility indicated by 
supporting records to be imminent. The remaining amount of the 
difference, if any, shall be applied proportionately to reduce the 
amounts includable in the property accounts in accordance with paragraph 
(b) of this instruction 2-16, based on the percentage relationship 
between such difference and the aggregate cost of the property shown in 
the predecessor companies' accounts.
    (d) When the amount applicable to the assets acquired is less than 
the par or stated value of no par capital stock issued and other 
consideration paid, including liabilities assumed, the accounting shall 
be referred to the Board for consideration and decision.
    2-17 Construction projects in which governmental agencies, 
individuals, or others, and the carrier participate. (a) The amount 
includible in the property account for construction projects in which 
the carrier and governmental agencies, individuals, or others 
participate shall be (1) the payment made by the carrier for its share 
of the cost of construction plus (2) the recorded cost (estimated if 
unknown) of property relinquished as a direct result of the arrangement 
and retired from service less the value of salvage recovered therefrom 
by the carrier and less depreciation accrued on depreciable property, 
which is part of the carrier's cost of the project. The amount so 
includable in the property account shall be distributed equitably among 
the primary accounts applicable to railway property constructed. This 
amount shall first be applied to railway facilities includable in 
accounts other than 4, Other right-of-way expenditures, or 39, Public 
improvements--Construction, then any remaining balance shall be included 
in account 4 or 39, as appropriate. In no case shall the amount included 
in the primary accounts for the railway facilities acquired exceed the 
actual cost of constructing such facilities. The property account shall 
not include any cost or value for facilities or land contributed or paid 
for by governmental agencies, individuals or others. Property acquired 
as a specific contribution to capital by stockholders does not come 
under this rule. (See text of account 795, Other capital.)
    (b) Construction projects as used in this section means widening of 
highways, construction of spillways, drainage canals, farm and other 
private passes, pipelines, drains or other facilities across the right-
of-way; construction of overhead highway bridges, and railroad bridges 
over public highways and across streams, which provide a railroad use in 
the operation of trains and a public use in the uninterrupted passage of 
highway and river traffic; installation of warning signals to protect 
highway traffic; and industrial side tracks. Also, reconstruction and 
relocation of tracks and appurtenant facilities such as occur in 
connection with carrying out flood control, reclamation, and other 
public improvement projects where it becomes necessary to abandon part 
of the line of railroad and relocate the tracks.
    2-18 Leased property improvements and retirements. The cost to 
lessee of structures, facilities, additions and betterments on leased 
property and for retirement of property the cost of which is included in 
account 732 Improvements on leased property, shall be accounted for in 
conformity with the

[[Page 33]]

principles in the instructions for property owned. When lessor's 
property is retired and replaced and lessee is not obligated to 
reimburse the lessor for the retired property other than through the 
replacement, the lessee shall (1) charge the cost of the replacement to 
account 732, Improvements on leased property, (2) discontinue accruing 
depreciation for lessor's retired property, and (3) when recording final 
settlement with the lessor, consider jointly the amount accrued in 
account 772, Accrued liability; Leased property, for lessor's retired 
property and the respective amounts for the replacement included in 
accounts 732, Improvements on leased property, and 733, Accumulated 
depreciation; Improvements on leased property. When lessee is obligated 
to reimburse the lessor currently or at the termination of the lease for 
property retired other than through replacement, the lessee shall 
include the amount of the obligation in the appropriate liability 
account. The lessee shall furnish the lessor such information as is 
required to enable the lessor to perform necessary accounting. The 
accounting by the lessee and the lessor shall be consistent with 
contractual arrangements.

[47 FR 26635, June 21, 1982, as amended at 52 FR 4321, Feb. 11, 1987]

    2-19 List of units of property. (a) This list of units is 
established for the purpose of designating the units of property to be 
used in accounting for additions to and retirements and replacements of 
property. Detailed information is included in instructions 2-7 and 2-8. 
Items listed under road property accounts are subject to the minimum 
rule applicable to additions to property. See instruction 2-2 pertaining 
to the minimum rule.
    (b) This list of units will be revised from time to time as may be 
necessary to meet conditions. A carrier desiring to include in any 
account an appropriate unit not now specified therein may, upon approval 
of the Board, make such authorized addition to this list of units.
    (c) Rules applicable to units of property rebuilt or converted and 
to changes in line of road or tracks which involve accounting for units 
or property retired are set forth in instructions 2-12 and 2-13.

[42 FR 35017, July 7, 1977, as amended at 48 FR 7183, Feb. 18, 1983]

                           Account 3, Grading

    A retaining wall, riprap (hand placed), a protecting dyke, a 
protecting crib, a wing dam, a revetment, mattress, pipe or other 
structures to provide drainage. Each entire installation.

                     Account 5, Tunnels and Subways

    The entire masonry, entire timber, and entire metal lining of a 
tunnel or subway, including portals and wing walls.

Drainage. Entire installation.
Lighting. Each entire installation.
Ventilation. Each entire installation.

               Account 6, Bridges, Trestles, and Culverts

A steel superstructure.
A concrete or stone substructure.
A concrete trestle, a complete bridge or approach.
A timber trestle, a complete bridge or approach.
Complete machinery for operating a movable span.
A protecting dyke, a protecting crib (a fender), a wing dam, a complete 
culvert. Each entire installation.

                     Account 7, Elevated Structures

    Any applicable units listed under account 6, Bridges, trestles, and 
culverts.

                Account 13, Fences, Snowsheds, and Signs

A complete snowshed.
One continuous mile of right-of-way fence.
One continuous mile of permanent sand or snow fence.

                Account 16, Station and Office Buildings

A complete building, including attached platform.
A complete platform structurally detached from a building.
Each retaining wall installation.
Each timber trestle installation.
Each outside steam, water, air, etc., pipe line installation.
Each storm or sanitary sewer installation.
A complete fence.
Paving. Each complete installation.
A station stockyard. Each complete installation.
A track scale.
A track scale pit.
An outside crane or conveying system for handling freight.
A motor truck.
A motor tractor.

[[Page 34]]

Any applicable units listed under other accounts.

                      Account 17, Roadway Buildings

    Any applicable units listed under account 16, Station and office 
buildings, and 44, shop machinery.

                       Account 18, Water Stations

A complete water supply piping system.
A dam or reservoir.
A pump house.
Pumping machinery. Each complete installation.
A water tank. Each complete installation.
A complete track trough at one location.
A water crane. Complete with pit.
A water treating plant.

                        Account 19, Fuel Stations

A complete fuel supply system, including appurtenances.
A pump house.
A fuel oil storage tank (large).

                   Account 20, Shops and Enginehouses

A complete building, including attached platform.
A complete platform structually detached from a building.
A turntable.
A turntable pit.
A transfer table with machinery.
A transfer table pit.
A sand storage and handling and drying apparatus.
Outdoor bins. Each complete installation.
A lorry track system (outside).
A boiler washing plant. Each complete installation.
An overhead crane, outside.
Each outside pipe installation, steam, air, water, etc.
Each sewer installation, storm or sanitary.
Paving. Each complete installation.
Each shop fence or wall installation.
Any applicable unit under account 16, Station and office buildings.

                     Account 22, Storage Warehouses

A complete building, including attached platform.
A complete platform structurally detached from a building.
For additional items, see accounts 16 Station and office buildings, and 
44, Shop machinery.

                      Account 23, Wharves and Docks

A timber float bridge.
A steel float bridge.
A wharf (including pile clusters).
A timber incline.
A bulkhead.
Jetties or breakwater.
Ferry racks (including pile clusters).
Float racks.
Each complete machinery installation.
For additional items, see accounts 3, Grading, 6, Bridges, testles and 
culverts, and 44, Shop machinery.

                    Account 24, Coal and Ore Wharves

Car dumper complete.
Timber bridges.
Steel bridges.
Each complete machinery installation.
A loading or unloading machine complete.
Each coal or ore pocket installation.
For additional items, see accounts 6, Bridges, trestles and culverts, 
16, Station and office buildings, 20, Shops and enginehouses, 23, 
Wharves and docks, and 44, Shop machinery.

                     Account 25, TOFC/COFC Terminals

A complete building.
A complete building, including attached platform and ramp.
A complete platform and attached ramp, structurally detached from a 
building.
A portable ramp.
A complete fence.
Paving, each complete installation.
An overhead crane, complete.
Each sewer installation.
A truck or tractor used exclusively at TOFC/COFC terminals.
Each floodlighting pole or tower installation.
Each floodlighting installation.
A power distribution system, complete.
Any applicable units listed under all other accounts.

                    Account 26, Communication Systems

A complete mile section or complete installation if less than a mile of 
pole line including cross arms, wires and appurtenances.
Each mile or complete installation of cable with associated parts.
Each mile or complete installation of conduit with associated parts.
A complete tower.
A complete installation at each location constituting a separate means 
of communication, such as radio, radar, carrier telephone, teletype, or 
other communication systems.
For additional items see account 16, Station and office buildings.

                  Account 27, Signals and Interlockers

A signal system installation complete, or section thereof, with 
associated parts, including masts, batteries, relays, ladder, etc.
A complete mile section or complete installation if less than a mile, or 
pole line including cross arms, wires and appurtenances.

[[Page 35]]

Each mile or complete installation if less than one mile of cable with 
associated parts.
Each mile or complete installation if less than one mile of conduit with 
associated parts.
Switch movement with associated parts.
A complete building.
An interlocking plant complete (excluding machine).
An interlocking machine.
Signal bridge complete.
Each highway crossing protection installation complete.
Each car retarder installation complete.
A traffic control or C.T.C. system installation complete.

                        Account 29, Power Plants

Any applicable units listed under accounts 16, Station and office 
buildings, and 20, Shops and enginehouses.

                 Account 31, Power Transmission Systems

A continuous mile, or a separate installation if less than a mile, of 
catenary complete including catenary hangers, trolley wire and 
appurtenances.
A continuous mile, or a separate installation if less than a mile, of 
transmission line, including poles, wires, transformers, switches, and 
other appurtenances.
Each outside steam, air, etc., pipe line installation.
A manhole.
Substation or switching station complete.
Each mile, or installation if less than a mile, of third rail.
A catenary bridge or support.
A high-tension transmission tower.
Any applicable units listed under accounts 26, Communication systems, 
and 27, Signals and interlockers.

                  Account 35, Miscellaneous Structures

A complete building, including attached platform.
A complete platform structurally detached from a building.
A conveyor system complete.
An elevator system complete.
A blowing system complete.
Any applicable units listed under other accounts.

                      Account 37, Roadway Machines

Each roadway machine complete including accessories.
Each on and/or off-track automotive vehicle complete, including 
appurtenant special-purpose machinery.

              Account 39, Public Improvements--Construction

Any applicable units listed under other accounts.

                       Account 44, Shop Machinery

A machine (including foundation and motor, if any), such as lathes, 
shapers, slotters, boring machines.
A furnace.
A boiler installation complete.
A motor vehicle used in shops only.
Testing equipment.
Overhead crane, complete.

                    Account 45, Power Plant Machinery

A power plant machine, including foundation, such as a turbine, 
rectifier, dynamo, generator.
Any applicable unit listed under account 44, Shop machinery.

                         Account 52, Locomotives

Diesel electric, lead or booster, i.e., ``A'' or ``B'' units.
Diesel electric. Extra or spare engines.
Electric locomotive.
Radio control locomotive.

                     Account 53, Freight-Train Cars

A complete car.
Motor equipment of a motor driven car.
A propulsion motor, including generator.
A freight container, complete.

                    Account 54, Passenger-Train Cars

A complete car, including interior furnishings.
Motor equipment of a motor driven car.
A propulsion motor, including generator.

                  Account 55, Highway Revenue Equipment

A complete vehicle.
A chassis.
A container.
A bogie.

                     Account 56, Floating Equipment

A complete vessel or boat, exclusive of machinery.
Machinery: a boiler, a motor, an engine.

                       Account 57, Work Equipment

(a) Rail equipment: (1) A complete car or machine, (2) A boiler, (3) An 
engine, (4) A motor, (5) Machinery equipment (with or without tractive 
machinery) such as concrete mixer, snow plow, derrick, steam shovel, or 
pile driver, (6) A complete motor equipment.
(b) Floating equipment--Work: (1) A complete vessel or boat, (2) A 
boiler, (3) An engine, (4) A motor. Any applicable units listed under 
other accounts.

                   Account 58, Miscellaneous Equipment

An airplane.
A complete vehicle.

[[Page 36]]

       Account 59, Computer Systems and Word Processing Equipment

A Mainframe
A Mini-computer
A Word processing system
A Printer
A Monitor
A Modem
A Storage device

[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]

    2-20 Accounting for leases. (a) Leases shall be accounted for as 
capital leases whenever the lease meets one or more of the following 
four criteria:
    (1) The lease transfers ownership of the property to the lessee by 
the end of the lease term,
    (2) The lease contains a bargain purchase option,
    (3) The lease term is equal to 75 percent or more of the estimated 
economic life of the property, and,
    (4) The present value at the beginning of the lease term of the 
minimum lease payments equals or exceeds 90 percent of the fair value of 
the leased property to the lessor at the inception of the lease less any 
related investment tax credit retained by the lessor.
    (b) If the lease does not meet any of the four criteria, the lease 
shall be classified and accounted for as an operating lease.
    (c) When accounting for capital leases the lessee shall record the 
asset and the related obligation. The amount recorded as the asset and 
the obligation shall be the present value at the beginning of the lease 
term of the minimum lease payments during the lease term, excluding that 
portion of the payments representing executory costs such as insurance, 
maintenance, and taxes to be paid by the lessor. However, if that amount 
exceeds the fair value of the leased property, the amount recorded as 
the asset and the obligation shall be the fair value. The lessee shall 
compute the present value of the minimum lease payments using its 
incremental borrowing rate unless (1) it is practicable to learn the 
implicit rate computed by the lessor and (2) the implicit rate computed 
by the lessor is less than the lessee's incremental borrowing rate. If 
both of those conditions are met, the lessee shall use the implicit 
rate.
    (d) Leased assets that meet the criteria for classification as a 
capital lease shall be subject to depreciation over their useful lives 
in the same manner as assets owned. If the capital lease meets the 
criteria of either Instruction 2-20(a)(1) or 2-20(a)(2), the asset shall 
be amortized in a manner consistent with the lessee's normal 
depreciation policy for owned assets. If the lease does not meet either 
of these two criteria, the asset shall be amortized in a manner 
consistent with the lessee's normal depreciation policy except that the 
period of amortization shall be the lease term.
    (e) The accounting accorded the lease shall be subject to the same 
considerations as other obligations in classifying them with current and 
noncurrent liabilities in the classified balance sheet. Leases that meet 
the criteria requiring capitalization shall be recorded in those 
accounts that provide for carrier operating property or property used in 
other than carrier operations, as appropriate. The accounts shall 
segregate the amounts pertaining to capital leases.
    (f) If the lease qualifies as an operating lease it should be 
accounted for by charging the rent to expense over the lease term. The 
rental expense should be recognized on a straight line basis over the 
lease term unless another method is more representative of the use and 
the benefits derived.
    (g) The criteria specified in paragraph (a) should be applied to all 
leases regardless of the relationship between the lessor and the lessee 
unless it is clear that the terms of the lease transaction have been 
significantly affected by their relationship. In this situation, the 
accounting should be modified to recognize economic substance rather 
than legal form.
    (h) In the case of subsidiary companies or companies under common 
control whose principal business activity is leasing property or 
facilities to the carrier, the carrier is encouraged to request special 
authority to file consolidated or combined financial statements. If the 
carrier does not wish to file consolidated or combined financial 
statements, capitalization of the lease will be required if the lease 
meets the

[[Page 37]]

criteria that would require capitalization.
    Note: The carrier shall follow generally accepted accounting 
principles where an interpretation of the rules for lease accounting is 
needed or obtain an interpretation from its public accountant or the 
Board.

[42 FR 56611, Oct. 27, 1977, as amended at 52 FR 4321, 4325, Feb. 11, 
1987]

    2-21 Freight train car repair costing. Class I railroads shall 
report the costs of repairing freight train cars by car types.
    (a) The accounting for freight train car repair costs shall agree 
with the applicable instructions and texts of accounts in 49 CFR Part 
1201 relating to the equipment repair process (see Note A).
    (b) Railroads may assign either actual costs, standard costs, or a 
combination of both to the accounting process. Standard costs, if used, 
shall recognize the differences in performing repairs on various types 
of equipment, and the differences related to specific repair facilites. 
Standard costs shall be based on adequate operational data which are 
reviewed at least annually. The resulting variances (price, efficiency, 
capacity, etc.) shall be reasonably allocated back to the car types to 
derive the amounts reported in Form R-1.
    (c) Railroads shall report repair costs by the freight train car 
types shown in Schedule 415 of Form R-1. In assigning repair costs, 
railroads may use either one of the following methodologies:

                     Level I: Job Order Cost System

    Railroads may use a job order cost system for assigning repair costs 
to the car types for freight train cars. Under this methodology, 
railroads shall directly match direct labor and materials with the 
specific unit of equipment that was repaired. Actual costs, standard 
costs, or a combination of both may be used as stated above.

             Level II: Alternative Repair Costs Methodology

    Railroads not using the job order cost system shall report freight 
train car repair costs by using the methodology described below:

    (1) The repair costs relating to heavy, program, or project repairs 
of freight train cars shall be directly assigned to the car types 
repaired by using actual or standard costs. A heavy repair is defined as 
a repair that is relatively so material in cost, repair time, or 
physical damage that management's involvement in the determination of 
the repair to be made is necessary and relatively greater than usual. 
Program or project repairs are those repairs which are performed under a 
predetermined plan where estimates costs, time periods, and car types to 
be repaired are identified.
    (2) The repair costs relating to light and running repairs of system 
cars shall be allocated to the car types by using the Association of 
American Railroads' Car Repair Billing System (CRBS) as the process for 
distributing light and running repairs. The CRBS will be the tracking 
system for recording the number of repairs, the car types and types of 
repairs. Then by applying the CRBS standard costs to the particular 
repairs, standard costs relationships by car type can be developed and 
used to distribute actual light and running repair cost pools to the car 
types.
    (3) Railroads shall match repair costs billed by and paid to foreign 
roads with the car types that were repaired. Foreign billings for light 
and running repairs are usually conducted through CRBS, and therefore, 
the car types can be identified. For heavy off-line repairs, car type 
identification is possible because system management is generally 
involved with the authorization of such heavy repairs and car 
identification numbers are generally included in the billing process.
    (4) Repair costs relating to foreign freight train cars shall also 
be reported by car types. However, a separate breakdown between foreign 
and system repair costs is not required for Board reporting purpose. Car 
type identification for light and running repairs to foreign cars can be 
obtained from CRBS tapes. The cost of heavy repairs to foreign cars 
should be accumulated by car types. The resulting expense credits from 
foreign railroads should be assigned to the car types to which they 
relate.
    (5) Railroads shall match any resulting expense credits with the car 
types to which they relate. This can occur, for example, when a railroad 
is charged with the repair costs of system cars,

[[Page 38]]

but the responsibility of the repair ultimately rests with and is paid 
by a foreign road.
    (d) Railroads shall submit to the Board any repair cost by car type 
methodology which does not agree with item (c) above. The Board shall 
review the methodology and determine if it is acceptable for reporting 
purposes.
    (e) Railroads may submit justification and supporting documents 
requesting waiver from provisions required by this instruction. This 
provision is intended to provide relief for those smaller Class I 
railroads that might be unduly burdened by the cost of developing and 
maintaining the required system. Waivers shall be directed to the 
Board's Accounting and Valuation Board.
    (f) Equipment repair cost records, including the allocation methods 
used, shall be maintained and made available to the Board upon request.

    Note A: The following accounts and reference pertain to the freight 
train car repair process:

11-22-42
21-22-42
39-22-42
40-22-42
41-22-42
61-22-42

Instruction 2-12, Units of property rebuilt or converted.

[46 FR 52951, Dec. 4, 1981, as amended at 52 FR 4321, 4325, Feb. 11, 
1987]

    2-22 Map specifications.
    (a) Class I Railroad companies shall maintain current maps of its 
property and shall promptly record any changes that may take place.
    (b) Class I companies shall furnish, on request, copies of maps 
showing its property as it exists on such date or dates as may be fixed 
by the Board.
    (c) Class I companies shall maintain planimetric maps that show 
right-of-way, track and other important facilities at a scale to show 
sufficient detail.
    (d) Maps shall be indexed and titled to clearly indicate the 
specific area depicted.
    (e) All maps shall be prepared in accordance with generally accepted 
mapping practices.

[47 FR 50267, Nov. 5, 1982; 48 FR 32833, July 19, 1983]

    2-23 Accounting for engineering costs.
    (a) The pay and expenses of engineers, assistants and clerks engaged 
in the survey and construction of new lines and extensions shall be 
included in the cost of the particular property involved. This 
accounting treatment also applies in making additions to and 
improvements of the carriers road, including wharves and docks.

                     List of Officers and Employees

    Chief engineer.
    Assistant engineers.
    Bridge and signal engineer.
    Architects and draftsmen.
    Chief clerk and other clerks.
    Transitmen and levelmen.
    Rodmen and chainmen.
    Cooks and porters on business cars.

                      Items of Expense and Supplies

    Atlases and maps.
    Barometers.
    Books for office use.
    Business car service.
    Cameras; compasses.
    Camp equipage.
    Chains for surveyors.
    Drawing boards.
    Drawing instruments.
    Field glasses.
    Furniture repairs and renewals.
    Heating and lighting.
    Magnets and magnifiers.
    Official train service.
    Paper, blue-print.
    Periodicals and newspapers.
    Photographic supplies.
    Printing and stationery.
    Provisions for business cars.
    Rent and repairs of offices.
    Rods for surveyors.
    Sextants and slide rules.
    Telegraph and telephone service.
    Traveling expenses.
    Triangles and tripods.

    (b) When employees listed in (a) above are engaged in the repair and 
maintenance of the roadway, their pay and expenses shall be charged to 
the appropriate operating expense accounts.
    (c) Expenditures for tentative or preliminary surveys shall be 
carried in account 743, Other deferred debits, until it is determined 
whether or not to continue the work. If the project is continued, 
expenditures for all surveys shall be transferred to the appropriate 
property account and, if abandoned, to appropriate income accounts.

[[Page 39]]

    (d) The cost of designing, making plans and specificaitons, and 
supervising the construction of equipment shall be included in the cost 
of the particular equipment.
    (e) Fees and expenses of architects specially employed for designing 
or supervising the construction of buildings shall be included in the 
accounts appropriate for the cost of the buildings constructed.

[49 FR 2254, Jan. 19, 1984, as amended at 52 FR 4321, Feb. 11, 1987]

    2-24 Accounting for other general expenditures.
    Expenditures of a general nature that are attributable but not 
directly assignable to original construction or important expansion of 
road shall be equitably assigned to the cost of specific units or 
segments of property. These expenditures include the pay and expenses of 
executive and general officers and their assistants engaged exclusively 
with such construction, law expenses (other than organization expenses), 
stationery and printing, and taxes before property is used in 
transportation operations.

[49 FR 2255, Jan. 19, 1984, as amended at 52 FR 4321, Feb. 11, 1987]



INSTRUCTIONS FOR MAINTENANCE EXPENSES--Table of Contents



    3-1 Items to be charged. (a) The accounts provided for maintenance 
of road property and of equipment are designed to show the cost of 
repairs and also the loss through depreciation of the property used in 
transportation operations, including expenses resulting from ordinary 
wear and tear of service, exposure to the elements, inadequacy, 
obsolesence, or other depreciation, or from accident, fire, flood, or 
other casualty.
    (b) These accounts shall include the cost of labor, materials and 
supplies, work-train service, floating equipment work service, special 
machine service, contract work, privileges, protection from casualties, 
and other analogous items of expense in connection with the maintenance 
of the plant used in railway service. The cost of materials and 
supplies, which shall include small tools, shall include the cost at the 
point of free delivery plus freight charges of foreign lines, and the 
costs of inspection and loading assumed by the carrier; also a 
proportion of store expenses. Such costs shall not include expenses of 
transportation over the carrier's line. Royalties for patent rights on 
mechanical appliances used in repairs of equipment shall be included in 
the cost of the repairs. The cost of boarding, traveling, and other 
incidental expenses of employees shall be included in the accounts to 
which the pay of the employees is chargeable, except where otherwise 
specified in the text of the accounts. In calculating the cost of 
materials used proper allowance shall be made for the value of unused 
portions and of cuttings, turnings, borings, etc., and for the value of 
the material recovered from property repaired and from temporary tracks, 
scaffolding, cofferdams, and other temporary structures used in repair 
work.
    (c) The cost of repairs shall include the cost of inspecting to 
determine the repairs necessary, and of adjusting or repairing parts, 
both of road property and of equipment, such as the repairing of 
locomotives, cars, frogs, switches, rails, etc.; the cost of inspecting 
and testing after repairs have been made such as the testing of 
locomotives after repairs to determine whether the repairs have been 
properly made, and the running of repaired locomotives light in order to 
break them in for regular service; incidental costs of repairs, such as 
the construction or removal of false work in connection with 
maintenance, cost of demolishing retired road property and disposing of 
the wreckage therefrom when the property is dismantled by or for the 
carrier; cost of maintaining or protecting traffic during the progress 
of construction work, including the cost of constructing, maintaining 
and removing temporary tracks required for maintaining traffic during 
the progress of the work; cost of mowing and beautifying grounds around 
buildings; repairing fences, sidewalks, driveways, and streets within or 
adjacent to such grounds; cost of removing snow from roofs of buildings 
(when not removed by those employed in the buildings); cost of 
periodical restorations of seasonal features, such as gardens, 
shrubbery, and lawns; cost of

[[Page 40]]

operating hothouses in connection with the work of beautifying grounds; 
and cost of clearing and removing casual incumbrances, such as ice, 
snow, and fallen timber.
    (d) An employee's job classification shall not govern the accounting 
for work performed. Charges to a particular expense function shall be 
based on the nature of the work performed.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]



INSTRUCTIONS FOR DEPRECIATION ACCOUNTS--Table of Contents



    4-1 Method. (a) There shall be charged monthly to operating expenses 
or other appropriate accounts and credited to account 735, Accumulated 
depreciation; Road and equipment property, during the service life of 
depreciable road and equipment property, includable in accounts classed 
as depreciable, amounts which will approximate the loss in service value 
not restored by current repairs or covered by insurance. The charges for 
accruing depreciation currently shall be computed in conformity with the 
group plan by applying to the cost of property such percentage rates as 
will distribute the service value by the straight-line method in equal 
annual charges to operating expenses or other accounts during the 
estimated life of the property. In the case of track accounts 8, 9 and 
11, service value shall reflect net salvage value. For road property, 
the cost shall be original cost or estimated original cost, as used in 
the valuation records, adjusted to current date. If a carrier submits 
proof that the actual cost of depreciable property is substantially 
different from cost figures in the valuation records, the carrier may, 
with the approval of the Board, use such cost figures as the 
depreciation base.
    (b) The term group plan means the plan under which depreciation 
charges are accrued upon the basis of the cost of depreciable property 
includable in accounts classed as depreciable using the service lives of 
the individual depreciable units in the accounts and properly weighing 
to determine the composite annual rate of depreciation.
    (c) For the purpose of the group plan of depreciation accounting, 
the following primary accounts are classed as depreciable accounts:

Road accounts:
    3. Grading.
    4. Other right-of-way expenditures.
    5. Tunnels and subways.
    6. Bridges, trestles and culverts.
    7. Elevated structures.
    8. Ties.
    9. Rails and other track material.
    11. Ballast.
    13. Fences, snowsheds, and signs.
    16. Station and office buildings.
    17. Roadway buildings.
    18. Water stations.
    19. Fuel stations.
    20. Shops and enginehouses.
    22. Storage warehouses.
    23. Wharves and docks.
    24. Coal and ore wharves.
    25. TOFC/COFC terminals.
    26. Communication systems.
    27. Signals and interlockers.
    29. Power plants.
    31. Power transmission systems.
    35. Miscellaneous structures.
    37. Roadway machines.
    39. Public improvements-construction.
    44. Shop machinery.
    45. Power plant machinery.
Equipment accounts:
    52. Locomotives.
    53. Freight-train cars.
    54. Passenger-train cars.
    55. Highway revenue equipment.
    56. Floating equipment.
    57. Work equipment.
    58. Miscellaneous equipment.
    59. Computer systems and word processing equipment.

    (d) When abandonment of a branch line or other important segment of 
the track structure or other part of the plant for which depreciation 
charges are not includable in the accounts as foreseeable within a 
reasonable period of time due to exhaustion of traffic, obsolescence or 
other causes, application may be made to the Board for authority to 
record a suitable provision in anticipation of a probable loss.

[42 FR 35017, July 7, 1977, as amended at 48 FR 4183, Feb. 18, 1983; 52 
FR 4325, Feb. 11, 1987]

    4-2 Rates of depreciation. (a) A separate composite annual 
percentage rate for each depreciable property account, or a subgroup in 
that account, shall be used in computing annual depreciation

[[Page 41]]

expenses and accumulated depreciation. The composite rates shall be 
based on the results of a depreciation study performed by each railroad. 
A depreciation study shall, in general, contain the following 
components:
    (i) Actuarial or semiactuarial methods for determining service lives 
for road and equipment properties;
    (ii) Salvage value calculations for road and equipment properties;
    (iii) Accumulated depreciation for each account or subaccount as 
appropriate;
    (iv) Other factors and related calculations involving the 
depreciation process; and
    (v) A commentary on any adjustments and judgmental factors used in 
the study.
    (b) Railroads shall submit to the Board for review and approval a 
report on depreciation studies and proposed depreciation rates every 
three years for equipment property, and every six years for road 
property. Railroads can, however, submit depreciation studies prior to 
its scheduled year, in which case a new cycle will begin.
    (c) In computing monthly depreciation charges, the annual percentage 
rates shall be applied to the depreciation base as of the first of each 
month and the results shall be divided by twelve.
    (d) Class II railroads are exempt from the three-year and six-year 
cyclical reviews, but shall submit depreciation studies when requested 
by the Board. Class III railroads are not required to submit 
depreciation studies.
    (e) A separate track depreciation rate shall apply to each primary 
property account in each track density category as provided in 
Instruction 4-3(d). Track depreciation rates shall be developed by 
estimating the average life based on an acceptable depreciation 
methodology, consistently applied, including as an option the units of 
production method based on gross ton-miles per mile of track.

[42 FR 35017, July 7, 1977, as amended at 46 FR 20210, Apr. 3, 1981; 48 
FR 7184, Feb. 18, 1983; 52 FR 4321, Feb. 11, 1987]

    4-3 Depreciation records to be kept. (a) The carrier shall maintain 
for each class of property in convenient and accessible form engineering 
and other data bearing on prospective service lives.
    (b) The carrier also shall keep such records of depreciable property 
and property retirements as will reflect the service life of each class 
of property which has been retired, or will permit the determination of 
service life indications by past experience of useful life tenure of 
comparable property, turnover, or other appropriate methods; also such 
records as will reflect the percentage of value of the salvage for 
property retired from each class of depreciable property.
    (c) For purposes of analysis the carrier shall maintain subsidiary 
records in which the accumulated depreciation account is broken down 
into component parts corresponding to each primary account to show the 
current credits and debits and the balance for each account. Such 
detailed information shall be reported annually to this Board. For 
balance sheet purposes, the accumulated depreciation account shall be 
treated as a single composite account for depreciable property.
    (d) Carriers shall be prepared to justify all track depreciation 
rates by keeping appropriate data on the service lives and salvage 
values of track components which went into the life and net salvage 
computation of each primary account in each density category.
    (e) The investment and related accumulated depreciation for accounts 
3, 4, 5, 8, 9, 11 and 39 must be maintained by distinct traffic density 
categories. Each line segment shall be identified on January 1 of each 
year as belonging to one of the following traffic density classes, based 
on the average traffic density in the preceding three years:

                                 Density

------------------------------------------------------------------------
 Class                             Description
------------------------------------------------------------------------
     I  Lines carrying at least 20 million gross ton-miles per mile on
         an annual basis and not designated as belonging to Density
         Class III.
    II  Lines carrying less than 20 million gross ton-miles per mile on
         an annual basis and not designated as belonging to Density
         Class III.
   III  Lines identified as potentially subject to abandonment pursuant
         to Section 10904 of the Interstate Commerce Act.
    IV  Yard and way switching tracks.
     V  Electronic yards.
------------------------------------------------------------------------

    Note A: For purposes of designating line segments as belonging to 
one of the density

[[Page 42]]

classes, the carrier shall consider all traffic carried over the segment 
whether in the carrier's trains or in the trains of other carriers 
(estimated if not known).
    Note B: When a carrier operates systems of parallel tracks on a 
single roadbed, the density associated with the related segment of a 
rail route shall be the aggregate gross ton-miles on all individual 
tracks.

[42 FR 35017, July 7, 1977, as amended at 46 FR 20210, Apr. 3, 1981; 48 
FR 7183, Feb. 18, 1983; 52 FR 4321, Feb. 11, 1987]

    4-4 Leased property--depreciation. (a) The carrier shall include in 
operating expenses charges for depreciation on road property and 
equipment used but not owned, the rent for which is includable in the 
lease rental accounts, and shall maintain the same records of service 
lives, salvage values, etc., as provided for owned road property and 
equipment. The excess of the total compensation paid over the amount 
chargeable for depreciation shall be included in the rent account. If 
settlement between the carrier and the lessor is not currently made, the 
amount of the depreciation accrued during the period of the lease shall 
be credited by the carrier to account 772. Accrued liability; Leased 
property. The necessary adjustments of the difference between the 
balance thus accrued in that account and the actual amount of settlement 
shall be made appropriately through accounts 519, Miscellaneous income, 
or 551, Miscellaneous income charges, at the time settlement for 
depreciation on the property is made with the lessor.
    (b) The carrier shall not include in the depreciation account in 
operating expenses any charges for depreciation of equipment used but 
not owned when the rents therefor are not included in the lease rental 
accounts but shall include such charges in the appropriate other rent 
expense accounts.
    4-5 Jointly used property--depreciation. The owning carrier shall 
include in the depreciation accounts in operating expenses the charges 
for depreciation on units of depreciable property jointly used with one 
or more other carriers. The owning carrier shall credit and each using 
carrier shall charge the appropriate joint facility accounts in 
operating expenses with the amounts billed by the owning carrier against 
each using carrier for its proportion of the service loss on property 
retired from service whether billed currently as depreciation or when 
retirements occur as the loss in service value. The using carriers shall 
be required to account for depreciation or retirement of units of road 
property jointly used but not owned to the extent of their contract 
liability. The same principle shall apply to terminal companies and 
their nonowner tenants in accounting for depreciation accruals or 
retirement charges recorded in the accounts of the terminal companies.



INSTRUCTIONS FOR INCOME AND BALANCE SHEET ACCOUNTS--Table of Contents



    5-1 Current assets. (a) In the group of accounts designated as 
current assets shall be included cash, those assets which are readily 
convertible into cash or are held for current use in operations, current 
claims against others and amounts accruing to the carrier which are 
subject to settlement in the ordinary course of business within one 
year. There shall not be included in this group of accounts any amount 
the collection of which is not reasonably assured within one year 
because of the known financial conditions of the debtor or otherwise. 
Such items shall be included in account 741, Other assets, at an amount 
not in excess of a reasonable estimate of realizable value. Items of 
current character but of doubtful value shall be written down or written 
off by charge to account 63-61-00, General--Uncollectible accounts--
General and administrative, or account 553, Uncollectible accounts, as 
appropriate. Adjustment of these items of doubtful value shall be made 
by direct reduction of the asset account in which such items are carried 
or by provision in account 709.5, Allowance for uncollectible accounts, 
for the estimated uncollectible amount.
    (b) The carrier shall transfer the estimated realizable value of 
obsolete material to account 741, Other assets, equitably distribute the 
loss due to obsolescence among the accounts ordinarily chargeable for 
such classes of material, and concurrently credit account 712, Material 
and Supplies.

[[Page 43]]

    5-2 Recorded value of securities owned. (a)(1) The investment in 
securities other than those issued or assumed by the accounting company 
shall be recorded in these accounts at cost, but excluding amounts paid 
for accrued interest and accrued dividends.
    (2) Accounts 702, Temporary Cash Investments, 721, Investments in 
Affiliated Companies, and 722, Other Investments, shall be maintained in 
such a manner as to reflect the marketable equity securities' portion 
(see definition 26) and other securities or investments.
    (3) For the purpose of determining net ledger value, the marketable 
equity securities in account 702 shall be considered the current 
portfolio and the marketable equity securities in accounts 721 and 722 
(combined) shall be considered the noncurrent portfolio. The net ledger 
value of each portfolio shall be the lower of its aggregate cost or 
market value. (See definition 26.) The amount by which aggregate cost 
exceeds market value shall be accounted for as the valuation allowance. 
Account 702, Temporary Cash Investments, shall be subdivided to include 
the valuation allowance for the marketable equity securities included 
therein. Account 724, Allowance for Net Unrealized Loss on Noncurrent 
Marketable Equity Securities--Cr., is the valuation allowance for the 
marketable equity securities recorded in account 721, Investments in 
Affiliated Companies, and 722, Other Investments. Marketable equity 
securities accounted for by the equity method shall not be combined with 
other marketable equity securities when determining aggregate cost and 
market value.
    (4) Realized gains and losses (the difference between net proceeds 
from sale and cost) shall be included in the determination of net income 
of the period in which they occur. Changes in the valuation allowance 
for marketable equity securities included in account 702 shall be 
charged to account 551, Miscellaneous Income Charges, or credited to 
account 519, Miscellaneous Income, as appropriate, with a contra entry 
to the valuation allowance contained within account 702. Changes in the 
valuation allowance for marketable equity securities included in 
accounts 721 and 722 shall be recorded in equity account 798.1, Net 
Unrealized Loss on Noncurrent Marketable Equity Securities, with a 
contra entry to valuation account 724.
    (5) If there is a change in the classification of a marketable 
equity security between current and noncurrent, the security shall be 
transferred at the lower of its cost or market value at date of 
transfer. If market value is less than cost, the market value shall 
become the new cost basis, and the difference shall be accounted for as 
if it were a realized loss and included in the determination of net 
income.
    (6) The accounting company shall write down the ledger value of any 
securities to the extent of impairment in their value or write off 
entirely if there is no reasonable prospect of realizing any value 
therefrom. For long term investments in marketable equity securities, 
when the decline in market value below cost is judged to be other than 
temporary, the cost basis of the individual security shall be writen 
down to a new cost basis. The amount of the write-down shall be 
accounted for as realized loss by a charge to account 551, Other Income 
Charges, and a credit to account 723, Reserve for Adjustment of 
Investment in Securities. The new cost basis shall not be changed for 
subsequent recoveries in value.
    (b)(1) For financial statement purposes the carrier shall follow the 
principles of equity accounting for (1) all investments in corporate 
joint ventures (see definition 21(c)), and (2) all investments in voting 
stock of affiliated companies giving the carrier the ability to 
significantly influence the operating and financial policies of an 
investee (see definition 21(b)). For purposes of this instruction an 
investment of 20 percent or more of the outstanding voting stock of an 
investee will indicate the ability to exercise significant influence 
over an investee in the absence of evidence to the contrary.
    (2) Since the equity method is not to be effected by entries in the 
books of accounts but is to apply only in financial reports to the 
Board, the carrier shall establish worksheet or memorandum accounts. 
Three basic worksheet or memorandum accounts are needed:

[[Page 44]]

    (i) An investment account to include (1) equity in the undistributed 
earnings or losses of the investee since the date of acquisition (see 
definition 21(g)); (2) accumulated amortization of the difference 
between cost and net assets at date of acquisition (see (b)(3) below); 
and other adjustments for disposition or writedown of investments.
    (ii) An income account to include (1) the investor's share of the 
investee's undistributed profits or losses for each reporting period 
subsequent to acquisition of the investment except that in the year of 
acquisition such amount shall be determined from the date of 
acquisition; (2) amortization for the reporting period of the difference 
between cost and net assets at date of acquisition. This account shall 
be closed at year-end to the retained earnings memorandum account 
discussed in paragraph (iii) below.
    (iii) A retained earnings account to include (1) equity in the 
undistributed earnings or losses of the investee since the date of 
acquisition; (2) accumulated amortization of the difference between cost 
and net assets acquired at date of acquisition (see (b)(3) below).
    (iv) Other memorandum accounts will be needed for such adjustments 
as gains and losses on disposition of investments, recognition of 
impairments in value, the investor's share of extraordinary and prior 
period adjustments reported in the investee's financial statements (see 
instruction 1-2(d)), and provision for deferred taxes where it is 
reasonable to assume that undistributed earnings of an investee will be 
transferred to the investor in a taxable distribution. These memorandum 
accounts shall be closed at year-end to the retained earnings memorandum 
account discussed in paragraph (iii) above.
    (3) The carrier shall retain the following information for each 
investee in support of the worksheet or memorandum accounts:
    (i) Original cost of investment.
    (ii) Equity in net assets of investee at date of acquisition.
    (iii) Allocation of difference between cost and equity in net 
assets, namely, to specific assets of investee or to goodwill.
    (iv) Accumulated amortization of difference between cost and equity 
in net assets.
    (v) Unamortized balance of difference between cost and equity in net 
assets.
    (vi) Equity in undistributed earnings/losses for each year since 
date of acquisition.
    (vii) Dividends received since date of acquisition if determinable.
    (viii) Proceeds from sale of investments.
    (4) Any difference between the investor's cost and its share of the 
net assets of the investee at date of acquisition shall be allocated to 
specific assets of the investee to the extent the difference is 
attributable to them. When the difference is allocated to depreciable or 
amortizable assets, depreciation and amortization (through the 
investment and income memorandum accounts) should absorb the difference 
over the remaining life of the related assets. If the difference is not 
related to specific accounts, it should be considered goodwill and 
amortized over a reasonable period not to exceed 40 years. For 
investments made prior to November 1, 1970, amortization of goodwill is 
not required in the absence of evidence that the goodwill has a limited 
term of existence.
    (5) The financial statements of the investee that are used for 
equity accounting should be timely. If the accounting year of the 
investee differs from that of the investor then the most recent 
available financial statements may be used. The lag in reporting should 
be consistent from period to period.
    (6) Material profits or losses on transactions between the investor 
and investee shall be eliminated until realized by either company as if 
the two were consolidated.
    (7) A transaction of the investee of a capital nature that affects 
the investor's share of the investee's stockholder's equity should be 
reported in the financial statements as if the two were consolidated.
    (8) The investor shall deduct any dividends applicable to 
outstanding cumulative preferred stock whether or not declared, and any 
other dividends declared when computing its share of undistributed 
earnings or losses.

[[Page 45]]

    (9) The investor shall suspend application of the equity method when 
the investment (including the investment memorandum account) together 
with any net advances made to the investee is reduced to zero. 
Additional losses shall not be provided for unless the investor has 
guaranteed obligations of the investee or is otherwise committed to 
provide further financial support for the investee. If the investee 
subsequently reports net income the investor shall resume applying the 
equity method at such time as its share of that net income equals the 
share of net losses not recognized during the period of suspension.
    (10) When the investor's voting stock interest falls below the level 
of ownership described in paragraph (b)(1) of this instruction, the 
investment no longer qualifies for the equity method. Should dividends 
received on the investment in subsequent periods exceed the investor's 
share of earnings for such periods, the investment memorandum and income 
memorandum accounts shall be reduced by the excess amount.
    (11) When the level of ownership of an investment increases to that 
described in paragraph (b)(1) of this instruction, the equity method 
shall be applied. The memorandum accounts for the investment, income 
(for current year's equity in undistributed earnings less amoritzation), 
and retained earnings (for prior years' equity in undistributed earnings 
less amortization) shall be adjusted retroactively on a step-by-step 
basis determining the equity in net assets at date of acquisition, 
amortization adjustment, and equity in undistributed earnings or losses 
at each level of ownership. Where small purchases are made over a period 
of time and then a purhase is made which qualifies the investment for 
the equity method, the date of latest purchase may be used as date of 
acquisition.
    (12) Information having significance with respect to the investor's 
ownership in investees shall be disclosed in notes to financial 
statements of annual reports filed with the Board in accordance with 
generally accepted accounting principles.
    (c) When securities with a fixed maturity date are purchased at a 
discount (i.e., when total cost including brokerage fees, taxes, 
commissions, etc., is less than par), such discounts may be amortized 
over the remaining life of the securities through periodic debits to the 
account in which the securities are carried (preferably coincident with 
entries recording interest accruals) and credits to the same account in 
which interest income is credited. No debits shall be made in respect to 
discounts upon securities held as investments or in special funds if 
there is reason to believe that such securities will be disposed of by 
redemption or otherwise at less than par or will not be paid at date of 
maturity. When securities with a fixed maturity date are purchased at a 
premium (i.e., when the total cost including brokerage fees, taxes, 
commissions, etc., is in excess of par), such premium may be amortized 
over the remaining life of the securities through periodic credits to 
the account in which the securities are carried (preferably coincident 
with entries recording interest accruals) and debits to the same 
accounts in which the interest income is recorded.
    Note: The carrier shall follow generally accepted accounting 
principles where an interpretation of the rules for equity accounting is 
needed or obtain an interpretation from its public accountant or the 
Board.
    5-3 Discounts, expenses, and premiums on debt. (a) Ledger accounts 
shall be provided to cover the discounts, expenses, and premiums on the 
sale or resale of each subclass of funded debt and of receivers' and 
trustees' securities issued for the benefit of or assumed by the 
company. (For explanation of subclass see account 765, Funded debt 
unmatured.) The net debit balances remaining in the ledger accounts for 
discount and premium shall be included in account 770.1, Unamortized 
debt discount, and the net credit balances in account 770.2, Unamortized 
premium on debt. Debt expense shall be included in account 743, Other 
deferred debits.
    (b) Each fiscal period there shall be charged to account 548, 
Amortization of discount on funded debt, a proportion on a consistent 
basis of each of the debit balances in the discount and premium accounts 
and correspondingly there shall be credited to income account 517, 
Release of premiums on funding debt, a similar proportion of each of the 
credit

[[Page 46]]

balances in these accounts. Related debt expense shall also be charged 
to account 548 on a proportional and consistent basis. The amounts for 
the respective debit balances for discount and expenses applicable to a 
particular issue of obligations may be charged directly to account 548 
at time of issue when the aggregate of such amounts does not appreciably 
affect the accounts. The method of apportioning debt discount, issue 
costs, and premium to accounts 517 and 548 shall be the interest method, 
where the effective interest rate on the date of issuance is applied to 
the carrying value (debt, less related discount, and issue cost, plus 
related premium of each specific issue to the beginning of any given 
period.) However, other methods of amortization may be used if the 
results obtained are not materially different from those which would 
result from the interest method.
    (c) When any funded debt which has been actually issued to bona fide 
holders for value is reacquired by the accounting company, that 
proportion of the balance remaining in accounts containing discount, 
expense and premium on funded debt for the subclass of the security 
reacquired applicable to the portion reacquired shall be credited or 
charged thereto, as appropriate, and concurrently charged or credited to 
account 519, Miscellaneous income, account 551, Miscellaneous income 
charges; or to account 570, Extraordinary items, as appropriate, in 
accordance with the text of these accounts. Such proportion shall be 
based upon the ratio of the par value of the security reacquired to the 
par value of all the securities of the subclass actually outstanding 
immediately before such reacquirement. Gains and losses from 
extinguishment of debt (excluding debt maturing serially) which is 
acquired to satisfy sinking fund requirements, shall not be recorded as 
extraordinary items regardless of amount, but shall be included in 
accounts 519 and 551, as appropriate. Such gains and losses shall be 
separately disclosed in reports to this Board.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]

    5-4 Discount, premium, and assessment on capital stock. (a) Separate 
ledger accounts shall be provided for each subclass of capital stock 
issued or assumed by the accounting company to cover discount suffered 
and premium realized at the time of sale of capital stock. General 
levies or assessments against stockholders shall be credited to the 
appropriate ledger accounts for the subclass of capital stock against 
which the levy or assessment is made.
    (b) The total of net debit balance in these ledger accounts shall be 
included in account 793, Discount on capital stock, and the total of net 
credit balances in account 794, Premiums and assessments on capital 
stock.
    (c) Discount on each subclass of capital stock may be offset or 
reduced by charges to account 794, Premiums and assessments on capital 
stock, to the extent that net gains from premiums or assessments have 
been included therein or to account 795, Other capital, to the extent 
that net gains from reacquisition and resale or retirement of capital 
stock applicable to such subclass have been included therein. Any 
remaining discount may be amortized by charge to account 616. Other 
debits to retained earnings, or may be retained and carried in account 
793, Discount on capital stock, until the stock to which the discount 
applies is retired.
    (d) In case the accounting company is permitted and elects with the 
approval of the Board, to distribute all or any part of the net balance 
of other paid-in capital to its stockholders, the amount thus 
distributed shall be charged to account 795, Other capital.
    (e) When capital stock is reacquired, either by purchase or 
donation, and is retired or cancelled, account 791, Capital stock, shall 
be charged with the par value, stated value of no par stock, or if no 
par stock without stated value, the proportionate amount at which the 
particular class of stock is included in account 791. Any excess of 
reacquisition cost over the recorded value of the stock shall be charged 
to account 795, Other capital, to the extent of the accumulated net 
gains included in this account applicable to reacquisition and resale or 
retirement of such subclass. Any remaining excess reacquisition cost 
shall be charged to account 616,

[[Page 47]]

Other debits to retained earnings. Any excess of recorded value over 
reaquisition cost shall be credited to account 795, Other capital.
    (f) When capital stock is reacquired, either by purchase or 
donation, and is not retired or cancelled, nor properly includable in 
sinking or other funds, the reacquisition cost shall be charged to 
account 798.5, Treasury stock.
    (g) When treasury stock is resold, account 798.5, Treasury stock, 
shall be credited with the cost paid for it. Gains shall be credited to 
account 795, `Other capital.' Losses shall be charged to account 795, 
Other capital, to the extent that previous net gains from sales or 
retirements of the same class of stock are included therein; otherwise, 
to account 616, Other debits to retained earnings.
    5-5 Joint liabilities. The accounting company shall state as a 
liability in its balance sheet the difference between the total par 
value of securities jointly or severally issued by it and others and the 
portion of such liability which, under the joint arrangement, it is 
expected will be liquidated by the other party or parties to the joint 
arrangement. The amount of the jointly or severally issued securities 
expected to be liquidated by the other party or parties shall be shown 
as a contingent liability in accordance with instruction 5-6 pertaining 
to contingent assets and liabilities.
    5-6 Contingencies. (a) The proper accounting treatment for 
contingencies depends upon whether the contingency is: Probable: the 
event or events are likely to occur; Reasonably possible: the chance of 
occurrence of the future event or events is more than remote, but less 
than likely; or Remote: the chance of occurrence of the future event or 
events is slight.
    (b) Loss contingencies must be accrued when they are probable and 
the amount of loss can be reasonably estimated. Where they are only 
reasonably possible, only footnote disclosure is required. Where they 
are remote, footnote disclosure is not required, but is permitted.
    (c) Gain contingencies usually are not reflected in the accounts 
since to do so might be to recognize revenue prior to its realization. 
Adequate disclosure shall be made of contingencies that might result in 
gain, but care shall be exercised to avoid misleading implications as to 
the likelihood of realization.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]

    5-7 Long-term obligations. Commitments under unconditional purchase 
obligations associated with suppliers' financing arrangements and future 
payments on long-term borrowings and redeemable stock shall be disclosed 
in accordance with generally accepted accounting principles. Such 
disclosures shall not preclude accounting recognition if the substance 
of a financing arrangement is the acquisition of an asset or incurrence 
of a liability.

[47 FR 4266, Jan. 29, 1982, as amended at 52 FR 4321, Feb. 11, 1987]



INSTRUCTIONS FOR CLEARING ACCOUNTS--Table of Contents



    6-1 Items to be charged. In recognition of the fact that certain 
expenditures incident to the construction and the operation of property 
are not chargeable directly to any particular property investment or 
expense account, clearing accounts have been provided for the purpose of 
securing an equitable distribution of such items to the proper primary 
accounts.
    6-2 Material and stationery store expenses. (a) To clearing accounts 
called Material store expenses and Stationery store expenses shall be 
charged expenses in connection with purchasing, handling and storing 
material and stationery in and distributing it from the company's 
storehouses. Including the pay of officers and employees in the 
purchasing and store departments and their traveling, office, and other 
expenses; also expenses, including wages, fuel, and supplies, of 
operating switching locomotives when exclusively assigned to the service 
of switching at material storehouses. (Expenses of incidental switching 
at material yards by locomotives in regular switching service shall be 
charged to the appropriate transportation accounts.) The pay and 
expenses of men employed in purchasing or inspecting a single class of 
material, such as ties, shall be added as

[[Page 48]]

store expenses to the cost of that particular material.
    (b) The total amount of storehouse expenses charged to these 
accounts shall be distributed among the accounts to which material and 
stationery has been charged, in proportion to the amounts charged to 
each account for the items issued, except that the amount representing 
the purchasing department expenses shall be apportioned on the value of 
the items issued which were purchased by that department. To avoid 
monthly fluctuations in the ratio of store expenses to the value of 
material and statonery purchased or issued, carriers may make a monthly 
apportionment on the basis of fair percentage rates, provided the store 
expense accounts are adjusted and closed out at the end of each year.
    6-3 Shop expenses. (a) To a clearing account entitled Shop expenses 
shall be charged items of expense at shops, enginehouses, repair tracks, 
and other places where mechanical work is performed, not assignable 
directly to specific accounts. Such expenses shall be apportioned among 
the various accounts affected. The basis of distribution shall be the 
relative proportion which the total amount of charges to Shop expenses 
bears to the total of the directly distributed labor. To avoid monthly 
fluctuations in the ratio of shop expenses to the total of distributed 
labor, carriers are permitted to make the monthly apportionment on the 
basis of a percentage of the distributed labor, provided the shop 
expense account is adjusted and closed out at the end of the year.
    (b) The expenses assignable to this account shall include the pay of 
foremen (who exercise supervision over all departments), their clerks, 
and other employees engaged in general work in and about shops, cost of 
heat, light and power; cost of small tools and supplies and water and 
power purchased; also cost of removal of snow and ice from transfer 
tables and shop yards, and other incidental shop expenses. To this 
account shall be charged expenses, including wages, fuel and supplies, 
of operating switching locomotives when exclusively assigned to 
switching service at shops (the expenses of incidental switching at 
shops by locomotives in transportation switching service shall be 
charged to appropriate transportation accounts).
    6-4 Gravel and sand pits and quarries. (a) When a gravel or sand pit 
or quarry is opened for operations likely to extend over a long period, 
an account shall be set up designated, Operations of gravel pit at ----
----------, or Operations of quarry at --------, as the case may be. To 
this account shall be charged cost of the land in excess of its 
estimated value after the gravel, sand, or stone has been removed 
(credit to the property account in which the cost of the land is 
included); payments for right to enter upon and remove ballast from land 
not owned by the carrier; cost of sinking test holes; and costs 
preparatory to opening the pit or quarry. To this account shall be 
charged also the cost, in excess of the estimated salvage value, of 
rails and fastenings, ties, other material and labor used in 
constructing tracks to and in the gravel pit or quarry (the estimated 
salvage being carried in an appropriate suspense account); cost of labor 
and train service employed in producing, quarrying, and loading ballast, 
including the cost of operation, repairs, and depreciation of power 
shovels and other machines and machinery; pay and expenses of watchmen; 
cost of explosives and hand tools, and miscellaneous expenses; and cost 
of installing, operating and maintaining signals and interlockers at 
gravel pits.
    (b) Credit to the clearing account shall be made each month to cover 
the cost of ballast material produced during the month. The cost of 
production shall include the expenses directly assignable to the monthly 
output plus a proportion of the expenses not directly assignable, such 
as cost of land, tracks, machinery, and interlockers. This latter amount 
shall be computed upon the basis of the ratio which the monthly output 
bears to the total estimated yardage to be taken from the pit. When any 
portion of the product of such pits or quarries is sold, the cost 
thereof shall be credited to this clearing account and any related 
profit shall be credited to account 110, Incidental.
    6-5 Power plant operations. (a) The accounting for the expenses of 
maintaining and operating an electric,

[[Page 49]]

steam, or other power plant (both building and machinery) shall be 
determined by the purpose for which the power produced is used. When a 
power plant is intended and used for producing power solely for the 
carrier's own operations and the cost of operating the plant is 
chargeable to clearing account Shop expenses, or to any one specific 
account for operating expenses, the expenses of maintenance shall be 
charged to the appropriate maintenance accounts, and the cost of 
operation to the account appropriate according to the use of the power.
    (b) When the power from such a plant is properly chargeable to more 
than one account, the expenses of maintaining and operating the plant 
shall be included in clearing account designated Power plant operations. 
The expense of maintenance shall be cleared from that account to the 
appropriate maintenance accounts. The expenses of operation shall be 
apportioned to the appropriate accounts upon the basis of quantity of 
power used for the various purposes.
    (c) When a part of the power produced by a power plant is sold and 
the remainder is used in the carrier's own operations, the cost of 
maintaining and operating the plant shall be charged to a clearing 
account. The expense of maintenance shall be cleared from that account 
to the appropriate maintenance accounts. The proportion of the expenses 
of operation assignable to the power sold, on the basis of ratio of 
quantity of power sold to total quantity of power produced, shall be 
credited to this clearing account and any related profit shall be 
credited to account 110, Incidental. The remainder of the cost of 
operation shall be distributed to the appropriate expense accounts for 
the carrier's own operations.
    (d) When power plants are intended and used solely for furnishing 
power to others, their investment cost shall be included in account 737, 
Property used in other than carrier operations, and the revenues and 
operating expenses shall be included in the accounts provided for 
operations of such property.
    (e) The accounting for the maintenance of transmission systems and 
distribution systems shall be in accordance with instructions pertaining 
to power plant operations.



PROPERTY ACCOUNTS--Table of Contents





Road--Table of Contents



0 Road.
    The several primary accounts included in this general account are 
designed to show the cost of land and road property owned by the carrier 
and devoted to transportation service.
2 Land for transportation purposes.
    This account shall include the cost of land of necessary width 
acquired for roadway; the cost of land for station, office, shop, and 
other grounds; for ingress to or egress from such grounds; for borrow 
pits, waste banks, snow fences, sand fences, and other railway 
appurtenances; and for storage of material adjoining the right-of-way; 
the cost of land for wharves and docks and the cost of riparian or water 
rights necessary therefor; the cost of removing from the right-of-way 
and locating elsewhere the property of others, and the cost of the 
necessary land for relocation of the property, when such costs are 
assumed by the accounting carrier.
    The carrier's records shall be kept in such manner as to show 
separately the cost of land purchased. Proceeds from the sale of timber 
or of improvements purchased with right-of-way, less any cost of 
removal, shall be credited to this account.

                            Items of Expense

Abstracts.
Appraisals.
Arbitrators in condemnation cases.
Commissions paid to others.
Condemnation expenses, including court costs and special counsel fees.
Damages to property of others.
Deferred payments for right-of-way.
Ditches for waterways when part of consideration.
Judgments and decreed costs to clear or defend titles.
Notarial fees.
Plats.
Premiums on condemnation bonds.
Recording deeds.
Payments for relinquishment of cattle passes and other rights.
Removal and relocation of buildings and other structures not purchased.

[[Page 50]]

Rent of land when part of consideration for purchase.
Right-of-way agents' compensation (engaged solely in acquiring right of 
way).
Taxes accrued and assumed at time of purchase.

    Note A: The cost of land acquired in excess of that necessary for 
transportation operations shall be included in balance sheet account 
737, ``Property used in other than carrier operations.'' When the 
purchase of land acquired for transportation operations involves land 
not used for such purposes, the charges to this account shall be based 
upon the estimated cost of only that portion which is used for such 
purposes, and the cost of the remaining land shall be included in 
account 737, ``Property used in other than carrier operations.'' Only 
the actual cost borne by the carrier for right-of-way and other lands 
acquired through vacation of streets and highways shall be included in 
this account. No donation should be considered as involved in the 
acquisition of such property.
    Note B: Amounts paid for options to purchase land for use in 
transportation operations shall be charged to account 743, ``Other 
deferred debits.'' If the carrier subsequently purchases the land, the 
amount of the option payment shall be transferred to this account. If 
the carrier does not acquire the land and forfeits the option paid, the 
amount shall be charged to account 551, ``Miscellaneous income 
charges.''
3 Grading.
    (a) This account shall include the cost of clearing and grading the 
roadway, and of constructing protection for the roadway, tracks, 
embankments and cuts.
    (b) When a part of a bridge or trestle, or the entire structure, is 
converted by filling into an earth embankment, and the bridge or trestle 
is used in lieu of a temporary trestle which would otherwise be required 
for the filling, the estimated cost of such temporary trestle shall be 
included in the cost of the filling, and charged to this account. (See 
note A, under account 6, ``Bridges, trestles, and culverts.'')
    (c) When a tunnel is converted into an open cut, the cost of 
clearing, grubbing, and excavating shall be included in this account. 
(Also see instruction 2-11.)

                 Details of Roadbed and Items of Expense

Advertising for contractors' bids.
Berm ditches.
Blasting.
Breakwaters.
Bulkheading.
Clearing land.
Cribbing.
Dikes (including those of earthen construction which are intended to 
function indefinitely).
Ditches (not required by right-of-way agreement).
Dressing slopes.
Excavation for conversion of tunnels into open cuts.
Filling bridges, trestles, and culverts.
Grading outfits.
Grubbing land.
Material taken from borrow pits.
New channels for streams.
Operations of steam shovels.
Payments for privilege of wasting material on the property of others.
Payments for waste banks off the right-of-way.
Retaining walls.
Revetments.
Riprap.
Spoil banks.
Temporary trestles for fills.
Tools for grading.
Wing dams.

[42 FR 35017, July 7, 1977, as amended at 49 FR 2255, Jan. 19, 1984]
4 Other right-of-way expenditures.
    This account shall include the cost (in excess of cost of railway 
facilities installed, if any) actually borne by the carrier of 
improvement projects (other than public improvement projects), such as 
the construction of canals, farm and other private passes, pipe lines, 
drains, and other facilities across the carrier's right-of-way.
5 Tunnels and subways.
    This account shall include the cost of tunnels and subways for the 
passage of trains, including apparatus for ventilating and lighting and 
safety devices therein, other than signals.

    Note A: The cost of tracks, including guard rails, in tunnels shall 
not be charged to this account.
    Note B: Station subways not highway crossings are includible in 
account 16, ``Station and office buildings.''
    Note C: When a tunnel is converted into an open cut, the ledger 
value of the tunnel shall be credited to this account. The service value 
of the tunnel shall be charged to account 735, ``Accumulated 
depreciation; Road and equipment property.''

[42 FR 35017, July 7, 1977, as amended at 48 FR 7183, Feb. 18, 1983]

[[Page 51]]

6 Bridges, trestles, and culverts.
    This account shall include the cost of the substructure and 
superstructure of bridges, trestles, and culverts which carry the tracks 
of the carrier over water-courses, ravines, public and private highways, 
and other railways.

                      Details of Bridge Structures

Abutments.
Bridge signs.
Cofferdams.
Concrete and masonry ends for culvert.
Cribs.
Decking, including gravel for fire protection.
Dike protection.
Drainage systems.
Draw protection.
Drawbridge engines and machinery.
False work.
Guard timbers.
Ice breakers.
Painting (except repainting).
Pier protection.
Piers and foundations.
Pipe culverts.
Retaining walls.
Riprap around abutments.
Riprap at culverts ends.
Supports.
Water channels.
Waterproofing.
Wind dams.
Wing walls.

    Note A: When a part or the entire structure of a bridge or trestle 
is converted, by filling, into an earth embankment, the ledger value of 
the structure, or of the portion thereof filled, shall be credited to 
this account. In case the bridge or trestle is used in lieu of a 
temporary trestle for the purpose of filling, the estimated cost of such 
temporary trestle shall be charged to account 3, ``Grading.'' The ledger 
value of the structure or portion thereof, filled, less the value of the 
salvage and the estimated cost of trestle charged to account 3 shall be 
charged to account 735, ``Accumulated depreciation; Road and equipment 
property.''
    Note B: The cost of bridges to carry the carrier's tracks over 
undergrade crossings, including the necessary piers and abutments to 
sustain them, shall be included in this account.
7 Elevated structures.
    This account shall include the cost of elevated structures and 
foundations of elevated railway systems. This account is applicable to 
structures other than earthwork, which are for the purpose of elevating 
tracks above the grade of streets, and which are not properly 
classifiable as bridges or trestles.
    Note: The cost of stations and other structures built on elevated 
structures shall be accounted for according to the class of the 
structure and not in this account.
8 Ties.
    (a) This account shall include the cost of cross, switch, bridge and 
other track ties used in the construction of tracks for the movement or 
storage of locomotives and cars (including tracks in shop, fuel station, 
supply yard areas, etc.), and the cost of additional ties subsequently 
laid in such tracks. This account should also include the cost of labor 
for unloading, distributing and placing ties in tracks.
    (b) The cost of handling ties in general supply and storage yards 
shall be included as store expenses.
    Note: The cost of ties used in the construction of car floats shall 
be included in the cost of such floating equipment, and the cost of ties 
used in the construction of temporary tracks, such as gravel-pit and 
quarry tracks, shall be included in the appropriate clearing accounts.
    Note: Respacing crossties is to be considered maintenance and 
expense.

[48 FR 7183, Feb. 18, 1983]
9 Rails and other track material.
    (a) This account shall include the cost of rails and other track 
material used in the construction of tracks for the movement or storage 
of locomotives and cars (including tracks in shop, fuel station, supply 
yard areas, etc.); the cost of welding two or more lengths or rail into 
continuous lengths for use in construction of tracks; and the cost of 
labor associated with unloading and installation of the rail and other 
track material.
    (b) The cost of handling rails and other track material in general 
supply and storage yards shall be included as store expenses.

                      Items of Other Track Material

    Angle bars.
    Anticreepers.
    Bumping posts.
    Compromise joints.
    Connecting rods.
    Crossings, including foundations or bases.
    Derails.
    Frog blocking.
    Frogs.
    Guard-rail blocking.
    Guard-rail clamps.

[[Page 52]]

    Guard-rail fasteners.
    Guard rails, switch and other.
    Main rods.
    Nut locks.
    Nuts.
    Offset bars.
    Rail braces.
    Rail chairs.
    Rail clips.
    Rail joints.
    Rail rests.
    Rail shims.
    Rail splices.
    Splice bars.
    Step chairs.
    Switch chairs.
    Switch crossings.
    Switch lamps.
    Switch locks and keys.
    Switch points.
    Switch stands.
    Switch targets.
    Switches.
    Tie plates.
    Tie plugs.
    Tie rods.
    Track bolts.
    Track insulators.
    Track spikes.

    Note A: The cost of rails and other track material used in the 
construction of car floats shall be included in the cost of such 
floating equipment and the cost of rails and other track material used 
in the construction of temporary tracks, such as gravel-pit and quarry 
tracks, shall be included in the appropriate clearing accounts.
    Note B: The following activities are considered as maintenance and 
should be expensed accordingly.
 Rail flaw detection
 Track inspection
 Shifting of existing track
 Removing weeds in track
 Transposing rail
 Restoring chipped and battered rail ends by welding 
and/or by rail grinding train or other such equipment.
 Gauging track
 Loading scrap track materials
 Lubricating rail
 Tightening bolts
 Resetting spikes and rail anchors in existing track
 Any other maintenance work not involving the 
placement of track material

[48 FR 7183, Feb. 18, 1983, as amended at 49 FR 2255, Jan 19, 1984; 52 
FR 4326, Feb. 11, 1987]
11 Ballast.
    (a) This account shall include the cost of gravel, stone, slag, 
cinders, sand, and like material used in ballasting tracks (including 
tracks in shop, fuel station, and supply yard areas, etc.) including 
cost of worktrain service and the cost of labor expended in placing 
ballast in tracks.

    Note A: The cost of ballast used in the construction of temporary 
tracks, such as gravel-pit and quarry tracks, shall be included in the 
appropriate clearing accounts.
    Note B: Earth placed to form a crown in the middle of the track is 
not considered as ballast.
    Note C: The cost of ballast material placed on the decking of 
bridges solely for fire-protected purposes shall be included in account 
6, ``Bridges, trestles and culverts.''
    Note D: Surfacing (surface correction of existing ballast) is to be 
considered maintenance and expensed.

[48 FR 7183, Feb. 18, 1983, as amended at 49 FR 2255, Jan. 19, 1984]
13 Fences, snowsheds, and signs.
    This account shall include:
    (a) Fences. The cost of right-of-way fences and snow and sand 
fences, farm gates, cattle guards, wing fences, aprons, and hedges, on 
property not previously fenced, excluding those around stockyards, fuel 
stations, station and shop grounds, and building sites.
    (b) Snowsheds. The cost of snowsheds, including initial cost of 
planting trees for protecting tracks from snow.
    (c) Signs. The initial cost of signs other than those for 
identification of bridges, signals, stations and other structures.

                               Sign Items

Boundary signs.
Bridge-caution signs.
Crossing signs.
Curve and elevation markers.
Division-limit signs.
Mileposts.
Monuments.
Safety-first signs at crossings.
Section-limit signs.
Slow or stop signs.
Tunnel-caution signs.
Water-station signs.
Whistle signs.
Yard-limit signs.

    Note A: The cost of fences (other than right-of-way boundary fences) 
around stockyards, fuel and water stations, and other building sites, 
shall be charged to the accounts appropriate for the cost of the 
structures.

[[Page 53]]

    Note B: The cost of signs for identifying bridges, signals, 
stations, and other structures shall be included in the account 
appropriate for the cost of the structures.
    Note C: The cost of crossing signals, including crossing gates, 
shall be included in account 27, ``Signals and interlockers.''
    Note D: This account shall also include the cost of replacing units 
of such property or substantial parts of fences or snowsheds the 
original cost of which are charged to this account.
16 Station and office buildings.
    This account shall include the cost of station and general office 
structures, their fixtures, appurtenances, and furniture necessary to 
equip the buildings ready for use.

                Station and Office Structures and Details

Breakwaters for protection of buildings.
Buildings and rooms for trainmen.
Buildings on piers.
Coal transferring machinery (not on coal and ore wharves).
Coal trestles (not at fuel stations).
Drainage and sewerage systems.
Elevators and machinery.
Fences.
Freight cranes and derricks.
Freight handling machinery.
Gas-supply systems.
General office buildings.
Grain elevators and warehouses.
Heating plants.
Hoisting engines, for handling freight.
Lighting plants.
Ore-transferring machinery.
Pavement within ground limits.
Platforms, passengers, including planking between tracks.
Power distribution systems, interior.
Sidewalks.
Station footbridges (not highway crossings).
Station intertrack fences.
Telegraph offices.
Track scales.
Water-supply systems.
Yard offices.

    Note A: Office buildings used exclusively in connection with 
maintenance of way shall be included in account 17, ``Roadway 
buildings.'' Those used exclusively in connection with maintenance of 
equipment shall be included in account 20, ``Shops and enginehouses.''
    Note B: The cost of grading and preparing grounds both before and 
after the construction of station buildings, the cost of constructing 
sidewalks, driveways, and fences thereon, and the cost of permanent 
water rights shall be included in the cost of the buildings. The fees 
and expenses of architects employed to design or supervise the 
construction in the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
17 Roadway buildings.
    This account shall include the cost of roadway shops and other 
roadway buildings, including drainage, water, gas, and sewer pipes and 
connections; and all machinery, fixtures, and furniture to equip the 
building ready for use.

                        List of Roadway Buildings

Breakwaters for protection of buildings.
Carpenters shops.
Fire-engine houses.
Frog shops for repair of track material.
Hand-car houses.
Lighting plants.
Lumber sheds.
Planning mills.
Rail reclamation plant.
Rail shops for repair of track material.
Rail welding plant.
Repair shops.
Scrap bins.
Section dwelling houses.
Tool houses.
    Note: The cost of grading and preparing grounds both before and 
after the construction of roadway buildings, the cost of constructing 
sidewalks, driveways, and fences thereon, and the cost of permanent 
water rights, shall be included in the cost of the buildings. The fees 
and expenses of architects, employed to design or supervise the 
construction of the buildings, shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
18 Water stations.
    This account shall include the cost of structures, facilities, and 
appliances necessary to equip for service, stations for supplying water. 
The cost of analyses of water preliminary to the establishment of water 
stations shall be included in this account.

                  Water Station Structures and Details

Boilers.
Breakwaters for protection of buildings.
Buildings on piers.

[[Page 54]]

Cisterns and dams.
Fences.
Pump houses.
Purifying plants.
Reservoirs and wells.
Settling basins.
Stationary engines.
Steam pipes.
Tanks and foundations.
Water pipe lines.
Water-treating plants.

    Note A: The cost of water stations used solely for supplying water 
to shops, power plants, stations, hotels, tenement houses, or section 
houses shall be charged to the appropriate accounts relating to the 
property so supplied.
    Note B: The cost of a temporary water station established only for 
use during the construction period shall be included in the primary 
accounts to which is charged the cost of the work in connection with 
which the water station is used.
    Note C: The cost of grading and preparing grounds both before and 
after the construction of water station buildings, the cost of 
constructing sidewalks, driveways, and fences thereon, and the cost of 
permanent water rights shall be included in the cost of the buildings. 
The fees and expenses of architects employed to design or supervise the 
construction of the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
19 Fuel stations.
    This account shall include the cost of structures, facilities other 
than tracks, and appliances necessary to equip for service, stations for 
supplying fuel to locomotives and floating equipment.

                   Fuel Station Structures and Details

Breakwaters for protection of buildings.
Buildings on piers.
Dumping machinery.
Elevating machinery.
Fences.
Fuel houses or stations.
Fuel-oil plants, pumps, and tanks.
Fuel platforms on wharves.
Stationary engines.
Weighing apparatus.

    Note A: The cost of fuel stations, coal houses, etc., used solely 
for supplying fuel to shops, power plants, stations, hotels, tenement 
houses, or section houses shall be charged to the appropriate accounts 
relating to the property so supplied.
    Note B: The cost of a temporary fuel station established only for 
use during the construction period shall be allocated to the primary 
accounts charged with the construction costs.
    Note C: The cost of grading and preparing grounds both before and 
after the construction of fuel station buildings, the cost of 
constructing sidewalks, driveways, and fences thereon, and the cost of 
permanent water rights shall be included in the cost of the buildings. 
The fees and expenses of architects employed to design or supervise the 
construction of the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
20 Shops and enginehouses.
    This account shall include the cost of buildings to be used as shops 
and enginehouses and storehouses for material for maintenance of 
equipment; foundations, except those special to particular machines and 
other apparatus; furniture and fixtures other than equipment chargeable 
to account 44, Shop machinery; drainage, sewerage, and water supply 
systems; and plants for heat and light.

               Shop and Enginehouse Structures and Details

Air-compressor houses.
Bins for material.
Blacksmith shops.
Breakwaters for protection of buildings.
Buildings on piers.
Car sheds and shops.
Carpenter shops.
Electric-power distribution systems within buildings.
Enginehouses.
Fire engine houses.
Footbridges (not public highways).
Foundries and machine shops.
Gas-compressor houses.
Heating and lighting plants.
Laboratories.
Lumber sheds.
Material and supply truck tracks.
Motor-crane tracks.
Offices, shop.
Paint shops.
Pipe lines, air, and heat.
Pipe lines, gas, interior.
Planning mills and repair shops.
Platforms, shop and yard.
Scale houses and scales.
Scrap bins.
Sidewalks.
Steam-distribution systems, interior.
Storehouses.
Tanks, gas, and oil.
Test rooms.
Turntables.

[[Page 55]]

Upholstering shops.
Warehouses.

    Note A: The cost of distinct power plant buildings for shop purposes 
shall be included in account 29, ``Power plants.'' The cost of 
distribution systems leading from such power plants to shops shall be 
included in account 31, ``Power-transmission systems.''
    Note B: The cost of grading and preparing grounds both before and 
after the construction of shop buildings, the cost of constructing 
sidewalks, driveways, and fences thereon, and the costs of permanent 
water rights shall be included in the costs of the buildings. The fees 
and expenses of architects employed to design or supervise the 
construction of the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
    Note C: The cost of shop buildings devoted solely to the maintenance 
of way and structures shall be included in account 17, ``Roadway 
buildings.''
22 Storage warehouses.
    This account shall include the cost of storage warehouses, including 
machinery and fixtures therein. The buildings herein referred to are not 
the ordinary freight warehouses or stations where freight is received 
for shipment, etc., but warehouses in which merchandise is stored and 
which the railway companies operate as storage warehouses.

    Note A: The cost of grading and preparing grounds both before and 
after the construction of storage warehouse buildings, the cost of 
constructing sidewalks, driveways, and fences thereon, and the cost of 
permanent water rights shall be included in the cost of the buildings. 
The fees and expenses of architects employed to design or supervise the 
construction of the buildings shall also be included in the cost of 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
    Note B: The cost of warehouses leased to noncarriers shall be 
charged to account 737, ``Property used in other than carrier 
operations.''
23 Wharves and docks.
    This account shall include the cost of wharves, docks, dry docks, 
slips, float bridges, and other landings for vessels, including the cost 
of necessary dredging and the cost of float-bridge machinery; also the 
cost of piling, pile protection, cribs, cofferdams, walls, and other 
necessary devices and apparatus for the operation or protection of 
wharves and docks.

                      Details of Wharves and Docks

Bridge pontoons.
Bulkheads.
Caissons and cribwork.
Dry docks.
Ferry-bridge machinery.
Ferry bridges.
Ferry slips.
Jetties and inclines.
Transfer-bridge machinery.
Transfer bridges.

    Note A: The cost of coal and ore wharves and docks shall be included 
in account 24, ``Coal and ore wharves.''
    Note B: The cost of the land on which wharves are built and cost of 
riparian or water rights for wharves and docks shall be charged to 
account 2, ``Land for transportation purposes.''
    Note C: The cost of buildings located on wharves shall be included 
in the accounts appropriate for the class of buildings.
    Note D: The cost of grading and preparing grounds both before and 
after the construction of wharves (other than coal and ore wharves), the 
cost of constructing sidewalks, driveways, and fences thereon, and the 
cost of permanent water rights shall be included in the cost of the 
wharves. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
24 Coal and ore wharves.
    This account shall include the cost of wharves and docks for the 
transfer, treatment, blending, or storage of coal or ore, including the 
cost of necessary dredging and of conveyors, machinery, and fixtures.

    Note A: The structures referred to in the account do not include 
small transfer or storage trestles or wharves at stations where coal is 
stored or delivered, such trestles being classed as station buildings.
    Note B: The cost of grading and preparing grounds both before and 
after the construction of coal and ore wharves, the cost of constructing 
sidewalks, driveways, and fences thereon, and the cost of permanent 
water rights shall be included in the cost of the wharves. The fees and 
expenses of architects employed to design or supervise the construction 
of whaves shall also be included in the cost of the wharves. However, 
the cost of restoring the grounds after addition and betterment work 
shall be included in the appropriate operating expense accounts.

[[Page 56]]

25 TOFC/COFC terminals.
    This account shall include the cost of structures, fixtures, 
machinery and appurtenances comprising terminals used for loading and 
unloading trailers and containers on and from flat cars.

                TOFC/COFC Terminal Structures and Details

Cranes and hoists, including related machinery and appurtenances.
Drainage and sewerage.
Fences.
Grading and preparing grounds for TOFC/COFC terminals.
Offices, TOFC/COFC terminal.
Lighting system.
Platforms, ramps and appurtenances.
Power distribution systems.
Sidewalks, pavements and driveways on terminal grounds.
Terminal trucks and tractors.

    Note A: ``Trailer,'' as used in the text and elsewhere in this 
system of accounts unless otherwise indicated in the context, means 
trailer bodies used in TOFC/COFC service which are permanently mounted 
on running gear. ``Containers'' means trailer bodies used in TOFC/COFC 
service which are not permanently mounted on wheels or chassis, but are 
separated from such running gear before being loaded on flat cars.
    Note B: The cost of grading and preparing grounds both before and 
after the construction of TOFC/COFC terminals, the cost of constructing 
sidewalks, driveways, and fences thereon, and the cost of permanent 
water rights shall be included in the cost of the buildings. The fees 
and expenses of architects employed to design or supervise the 
construction of the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
26 Communication systems.
    This account shall include the cost of telegraph, telephone, radio, 
radar, inductive train communication, and other communication systems, 
including terminal equipment.

          Details of Telegraph and Telephone Terminal Equipment

Batteries.
Cables and wires, interior.
Carrier terminating equipment.
Conduits, interior.
Connecting wires.
Current-controlling instruments.
Electric generators and motors.
Electric meters.
Engines, stationary.
Fuses and mechanical protectors.
Rectifiers.
Rheostats.
Sending and receiving instruments.
Switchboards.
Telegraph repeaters.
Telephone repeaters.
Teletypewriters.
Testing outfits.
Transformers.

            Details of Telegraph and Telephone Outside Plant

Aerial attachments.
Braces.
Brackets.
Cable boxes and appurtenances.
Cable and wires, aerial.
Conduits and appurtenances.
Cross arms.
Gas and associated facilities for cables.
Guy stubs.
Guy wires.
Insulators.
Load coils.
Submarine cables and connections.
Telephone pole boxes.
Towers.
Underground cables and connections.

  Details of Radio, Radar, and Inductive Train Communication Equipment

Aerials or antenna, and attachments.
Buildings or towers used exclusively for wireless.
Control units.
Power generating, converting, or supply equipment.
Radar console and associated equipment.
Roadside or office equipment for all wireless systems operated on 
special channels between train and train, train and tower or office, or 
between ship and shore.
Specialized testing and repair equipment.
Transmitters and receivers, including mobile units.

    Note A: Radio, radar or trainphone equipment (except portable 
apparatus) which is permanently attached to locomotives, cars, work 
equipment, or other rolling stock or floating equipment shall be 
included in the same accounts as the equipment on which installed. 
Wireless sets for instruction, advertising, or entertainment shall be 
included in the same accounts as the building in which located.
    Note B: Communication systems of limited extent, not connected with 
other systems used for special purposes and usually installed within a 
single building, group of buildings, or within the limits of a station 
or shop layout or yard, shall be included in the same account as the 
building in which located or in the account appropriate for the service 
with which associated.

[[Page 57]]

                                  Items

Buzzers, bells, dictaphone or other interoffice communication systems in 
an office or group of buildings.
Loud speakers, bells, or whistles in shop and other yards.
Loud speakers, public address devices, press button control lights, 
telautograph or other systems in stations or on platforms.
Whistles, klaxons, or horns operated from signals towers.

    Note C: Test sets shall be classified as tools and included in the 
account appropriate for their use.
27 Signals and interlockers.
    This account shall include the cost of interlocking and other 
signals apparatus for governing the movements of locomotives, cars, and 
trains, and for the protection of traffic at crossings, including towers 
and other buildings, furniture, fixtures, and machinery in connection 
therewith; roadway installations for train control and remote control 
including the cost of the initial tests of such installation; also the 
cost of buildings and machinery of power plants used primarily for the 
production of power for the operation of signals and interlockers.

                                  Items

Automatic-train control devices other than on equipment.
Call-bell systems along track to call in flagmen.
Call boxes, electric.
Car-retarder systems.
Centralized traffic control.
Crossing flasher-light signals.
Crossing gates, highway and railway.
Crossing signals bells.
Crossing warning signals.
Interlocker buildings and machinery.
Power apparatus primarily for the operation of signals and interlockers.
Power-distribution lines primarily for the operation of signals and 
interlockers.
Signal buildings.
Signal machinery, poles and foundations.
Train-order signals.

    Note A: When signal or interlocking apparatus is located in a 
station building, only the cost of the signal or interlocking apparatus 
shall be charged to this account. The entire cost of the building shall 
be included in account 16, ``Station and office buildings.''
    Note B: The cost of track material, such as switches, special rail 
braces, special roads, special track fastenings, split rails, derails, 
derail stands, and frogs, used in connection with interlockers, shall be 
included in account 9, ``Rail and other track material.''
    Note C: When derails are arranged so as to be thrown from switch 
stands, the cost of labor expended in the installation of the 
connections between the switch stand and derail and the devices for 
throwing the derail shall be included in account 9, ``Rail and other 
track material.'' The cost of the material shall be included in account 
9, ``Rail and other track material.''
    Note D: The cost of grading and preparing grounds both before and 
after the construction of signal and interlocker buildings, the cost of 
constructing sidewalks, driveways, and fences thereon, and the cost of 
permanent water rights shall be included in the cost of the buildings. 
The fees and expenses of architects employed to design or supervise the 
construction of the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]

                            29 Power plants.

    This account shall include the cost of power-plant and substation 
buildings (housing machinery provided for in account 45, ``Power-plant 
machinery''); all foundations other than those special to particular 
machines and apparatus; and also dams, canals, pipe lines, and 
accessories devoted to the utilization of water for power. Gas and sewer 
pipes and their connections, fixtures (including wiring) for lighting 
and heating, and furniture and miscellaneous fixtures shall be 
considered as a part of the power-plant buildings.

                       Power-Plant Structure Items

Buildings.
Coal bunkers, pockets and trestles.
Fences (other than right-of-way boundary fences).
Fixtures for lighting (including wiring) and heating power-plant 
buildings.
Foundations (except special foundations for machines and other 
apparatus).
Fuel-oil tanks.
Furniture.
Hose and appliances for protecting buildings against fire.
Pavement within ground limits.
Permanent rights in water supply.
Platforms.
Smoke stacks and chimneys and their foundations when distinct from and 
not resting on boilers.
Water, sewer, gas, and drainage, pipes and connections.
Wells (but not pumps).

[[Page 58]]

                     Dam, Canal, and Pipe-Line Items

Aqueducts.
Bridges.
Fences (other than right-of-way boundary fences).
Footbridges.
Reservoirs.
Roadways.
Sluices.
Valves.
Water rights.

    Note A: The cost of power-plant machinery, including stacks resting 
on boilers, and special foundations for machines, shall be included in 
account 45, ``Power-plant machinery.''
    Note B: The cost of the buildings and the power machinery and other 
apparatus of plants used primarily for operating signals and 
interlockers shall be included in account 27, ``Signals and 
interlockers.''
    Note C: Investment in buildings and machinery of detached plants for 
furnishing power both for operating purposes and for sale shall be 
included in this account and in account 45, ``Power-plant machinery,'' 
respectively. When plants are intended and used primarily for generating 
power for sale to other than common carriers, the investment shall be 
included in account 737. ``Property used in other than carrier 
operations.''
31 Power-transmission systems.
    This account shall include the cost of systems for conveying 
electricity, steam, and compressed air from producing plants to place or 
building where used; also the cost of conduits and of poles, cross arms, 
insulator pins, brackets, and other pole fixtures, and of other 
structures for power-transmission and distribution systems, including 
those for electric railway operation, and lighting systems for general 
lighting purposes.

                     Power-Transmission System Items

Air pipe-line in car yards.
Compressed air pipe-lines.
Compressed air storage tanks (not at power houses or shops).
Cut-outs (not at power houses and substations).
Overhead trolley wires.
Rail-insulating devices.
Steam-heating pipe-lines in car yards.
Switchboards (not at power houses and substations).
Third-rail insulation and protection.
Transformers (not at power houses and substations).
Underground power tubes.

                       Pole-Line and Conduit Items

Braces and other support for holding poles in position.
Brackets, cross arms, and other pole fixtures.
Conduits for wires and cables.
Cutting and trimming trees.
Guy stubs and wires.
Manholes.
Poles and towers.
Sewer traps.
Stenciling or painting letters or numbers on poles.

    Note A: The cost of wire and pipe-distribution systems located 
within shop buildings and in stations and office buildings shall be 
included in the cost of the buildings, except that lateral service lines 
to equipment-shop machines shall be included in account 44, ``Shop 
machinery.'' The cost of distribution systems used primarily for 
operating signals and interlockers shall be included in account 27, 
``Signals and interlockers.''
    Note B: The cost of conduits and of poles and fixtures for telegraph 
and telephone, or signal lines shall be included in account 26, 
``Communication systems,'' or account 27, ``Signals and interlockers,'' 
as appropriate. The cost of poles and conduits used for telegraph and 
telephone or signal lines and for power-distribution lines shall be 
included in the account appropriate according to their predominant use.
35 Miscellaneous structures.
    This account shall include the cost of all permanent structures not 
provided for elsewhere, including all fixtures and furniture to equip 
them for use.

                     Miscellaneous Structures Items

Floodlight tower installations in yards.
Grain elevators where grain is stored for owners.
Storehouses for general purpose materials and supplies.

    Note A: Small storage elevators at way stations where grain is 
received for shipment are classed as station buildings.
    Note B: The cost of grading and preparing grounds both before and 
after the construction of miscellaneous structures and the cost of 
constructing sidewalks, driveways, and fences thereon, shall be included 
in the cost of the structures. The fees and expenses of architects 
employed to design or supervise the construction of the buildings shall 
also be included in the cost of the structures. However, the cost of 
restoring the grounds after addition and betterment work shall be 
included in the appropriate operating expense accounts.

[[Page 59]]

37 Roadway machines.
    This account shall include the cost of the initial outfit of roadway 
machines provided for the maintenance of roadway and structures at the 
time the road is opened for commercial traffic, and the cost of 
additional roadway machines acquired subsequently. This account shall 
also include the cost of on and/or off-track automotive vehicles, 
permanently equipped with special-purpose machinery such as hydraulic 
cranes, derricks, ditching apparatus, pile-driving equipment, and 
similar machines listed below, and used exclusively in maintenance of 
way and structures.

                        List of Roadway Machines

Adzers.
Anchor applicators.
Ballast regulators.
Cars, lever.
Cars, motor inspection.
Cars, push.
Cars (small), crane, for supply yards and general use.
Concrete mixers.
Ditching machines.
Dredging machines.
Engines, portable.
Grading outfits.
Hydraulic outfits.
Jacks, hydraulic.
Pile drivers.
Plows, unloading.
Rail grinders.
Rail unloaders.
Rock crushers.
Scarifier-inserters.
Spike drivers.
Spike pullers.
Tie tampers.
Timber trucks.
Trackliners.

    Note A: When an important addition and betterment project or the 
construction of a new line necessitates the purchase of roadway machines 
to be used exclusively thereon, the cost shall be included in the 
accounts to which the cost of the work is charged. The amount realized 
from any subsequent sale, or the appraised value of the machines 
retained after the completion of the special work for which they were 
purchased, shall be credited to the accounts charged with the cost 
thereof. The appraised value of such machines retained shall be debited 
to this account and thereafter considered as the cost of such property.
    Note B: The cost of machines for the equipment of roadway shops 
shall be included in account 17, ``Roadway buildings.''
    Note C: The cost of roadway machines, such as pile drivers, log 
loaders, hoist engines, and concrete mixers, when permanently mounted 
for movement on the carrier's tracks, shall be included in account 57, 
``Work equipment.''
39 Public improvements; construction.
    This account shall include amounts assessed on carrier property by 
governmental authority (by mutual agreement or otherwise) to cover the 
cost of constructing public improvements, when such assessments are made 
against property within defined areas of taxing districts. The account 
also shall include carrier's portion of the cost of public improvements 
constructed under governmental requirements. (See instruction 2-17.) The 
entire amount of each assessment and other liabilities for public 
improvements shall be included in this account as soon as the amounts 
are determined.

                                  Items

Cost of land outside carrier's right-of-way to provide for the 
relocation of streets or highways or providing slopes therefor.
Cost of removal and relocation of buildings and other structures in 
connection with the construction of streets and highways.
Curbing streets and highways.
Damage to property of others when incidental to highway construction.
Drainage systems.
Engineering--When such costs apply to items chargeable to this account.
Flood protection.
Grading streets and highways.
Guttering streets and highways.
Irrigation systems.
Levees.
Overhead highway bridges, including approaches.
Paving streets and highways, including such pavings at crossings.
Planking, highway crossings.
Sewer systems.
Sidewalks.
Street-lighting systems.
Water works.

    Note A: The cost of railway facilities installed in connection with 
joint public improvement projects if not in excess of total costs borne 
by the carrier shall be included in accounts other than account 39, 
``Public improvements; construction,'' appropriate for the class of 
property installed. Any costs borne by the carrier in excess of the cost 
of railway facilities shall be charged to this account. The carrier 
shall charge the cost of assessments for public improvements which

[[Page 60]]

is borne by joint owner tenants to the appropriate property accounts 
other than account 39, ``Public improvements; construction,'' 
assessments from tenant owners shall be credited to account 795, ``Other 
capital.'' The owner tenants shall charge their proportionate share of 
the assessment to account 721, ``Investments and advances; affiliated 
companies.'' The carrier shall charge the appropriate property accounts 
other than the public improvement account for the cost of public 
improvement assessments borne by nonowner tenants with contra credit to 
account 38-00-00, ``Purchased services--Joint facility--Credit,'' and 
the tenants shall charge their proportionate share of the assessments to 
account 37-00-00, ``Purchased services--Joint facility--Debit.''
    Note B: The cost to the carrier of maintaining public improvements 
shall be included in operating expenses.
    Note C: Any portion of the cost of public improvements which is 
included in the general tax levy for a regular taxing district shall be 
included in the account appropriate for the taxes.
    Note D: The amount of the deferred payments of assessments for 
public improvements, if payments are to be made within one year, shall 
be included in account 763, ``Other current liabilities.'' If the 
payments are spread over a longer period they shall be credited to 
account 782, ``Other liabilities.'' The interest paid on such 
assessments shall be included in account 547, ``Interest on unfunded 
debt.''
    Note E: Interest imposed for failure to pay assessments within the 
allocated time shall be charged to Account 547, Interest on unfunded 
debt. Any related penalties shall be charged to Account 551, 
Miscellaneous income charges.
    Note F: Assessments on noncarrier property for the cost of 
constructing public improvements shall be charged to account 737, 
``Property used in other than carrier operations.''

[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
44 Shop machinery.
    This account shall include the cost of machinery and other apparatus 
in shops and engine houses, including the cost of special foundations 
and installation and cost of small hand tools necessary first to equip a 
shop.

                         List of Shop Machinery

Ash conveyors.
Air compressors.
Belting.
Blowers.
Boilers for furnishing power.
Boring machines.
Cars, motor.
Cars, push.
Cranes.
Drilling machines.
Drop tables.
Forges.
Framing machines.
Furnaces.
Grinding and polishing machines.
Hoists.
Hydraulic jacks.
Lathes.
Lifting magnets.
Metal chimneys.
Milling machines.
Motors.
Pipe cutting and threading machines.
Planers.
Pneumatic hammers.
Power equipment.
Punches.
Riveters.
Saws.
Shafting.
Shapers.
Slotters.
Stationary engines.
Steam hammers.
Vises.
Welding machines.
Woodworking machines.

    Note A: The cost of power-plant machinery and other apparatus for 
shop purposes, when located in distinct buildings, shall be included in 
account 45, ``Power-plant machinery.''
    Note B: The cost of foundations other than those special to 
particular machines and other apparatus shall be included in the cost of 
the building and not in this account.
45 Power-plant machinery.
    This account shall include the cost of machinery and other apparatus 
in power plants and substations for generating and transforming power 
used for the operation of trains and cars or to furnish power, heat, and 
light for stations, shops, and general purposes, and also the cost of 
foundations special to particular machines or other apparatus including 
the cost of installation.

                                  Items

Air compressors.
Ash-conveying machinery.
Battery-charging apparatus.
Boiler-room appliances and tools.
Boilers and fittings.
Circuit breakers.
Furnaces.
Ice-manufacturing machinery and apparatus.
Lubricating devices.
Mechanical stokers.
Metal stacks on boilers.

[[Page 61]]

Refrigerating--machinery and apparatus.
Rotary converters.
Sewer connection for machinery.
Coal-conveying machinery.
Condensers.
Cranes.
Draft machinery.
Dynamos.
Engine-room appliances and tools.
Feed water heaters.
Special foundations for machines.
Steam-distribution systems within the plant.
Switchboards.
Tanks.
Tractors, trailers, and trucks, permanently assigned to power plants.
Transformers.
Turbines.
Water meters.
Well pumps.

    Note A: The cost of power machinery and other apparatus installed in 
a shop as part of the shop equipment shall be included in account 44, 
``Shop machinery.''
    Note B: The cost of power machinery and other apparatus installed in 
station and office buildings shall be included in account 16, ``Station 
and office buildings.''
    Note C: The cost of buildings and the power machinery and other 
apparatus of plants used primarily for operating signals and 
interlockers shall be included in account 27, ``Signals and 
interlockers.''
    Note D: The cost of foundations other than those special to 
particular machines and other apparatus shall be included in the cost of 
the building and not in this account.
    Note E: The cost of machinery and buildings of detached plants for 
producing power both for operating purposes and for sale shall be 
included in this account and in account 29, ``Power plants,'' 
respectively. When plants are intended and used primarily for generating 
power for sale to noncarriers the investment shall be included in 
account 737, ``Property used in other than carrier operations.''



Equipment--Table of Contents



50 Equipment.
    The several primary accounts included in this general account are 
designed to show the cost of the several classes of equipment vehicles 
and shop and power plant equipment owned by the carrier, or held under 
equipment trust agreements or other contractual obligation for purchase 
of the property.
52 Locomotives.
    (a) This account shall include the cost of locomotives and tenders 
purchased or built by the carrier, and of appurtenances, furniture, and 
fixtures necessary to equip them for service, including the cost of 
inspection, setting up, and trying out after receipt from builders, and 
transportation charges to the carrier's line. This account may also 
include the cost of spare engines carried on hand for the purpose of 
temporarily replacing similar units removed from locomotives for 
overhaul, repair or other reason.
    (b) Records shall be maintained to reflect separately the investment 
cost of locomotives on the basis of their initial identification for 
depreciation purposes; i.e., road passenger, road freight, road 
switching and yard switching.

                  List of Appurtenances to Locomotives

Airbrake equipment and hose.
Arm rests.
Brake fixtures.
Cab cushions.
Clocks.
Fire-extinguishing apparatus.
Gongs.
Headlamps.
Metallic packing.
Pneumatic sanding equipment.
Radio equipment, permanently attached.
Seat boxes.
Signal lamps.
Speed recorders.
Steam-gauge lamps.
Steam-heat equipment and hose.
Storm doors.
Tool boxes.
Train-signal equipment and hose.
    Note: Cars with motor equipment are not to be classed as 
locomotives.
53 Freight-train cars.
    This account shall include the cost of freight-train cars of all 
classes, such as motor-driven cars, purchased or built by the carrier, 
including all appurtenances, furniture, and fixtures necessary to equip 
them for service, and the cost of inspection and transportation charges 
to the carrier's line.

                       List of Freight-Train Cars

Automobile.
Ballast (commercial).
Beer.
Box.
Cabin.
Caboose.
Charcoal.
Coal.
Coke.
Dump (commercial).

[[Page 62]]

Express.
Flat.
Fruit.
Furniture.
Gondola.
Gondola (hopper).
Gondola (long).
Hay.
Lime.
Mail.
Oil tank.
Ore.
Logging.
Platform.
Polling.
Poultry.
Produce.
Rack.
Refrigerator.
Stock.
Tank and water (when used as commercial cars).

               List of Appurtenances to Freight-Train Cars

Air-brake equipment, including hose.
Cooking equipment and utensils.
Heating units.
Lamps and fixtures.
Loading devices.
Refrigeration units.
Seats.
Speed recorders.
Train-signal equipment, including hose.
Water tanks.

54 Passenger-train cars.
    This account shall include the cost of passenger-train cars of all 
classes, such as motor-driven cars, purchased or built by the carrier, 
including all appurtenances, furniture, and fixtures necessary to equip 
them for service, and cost of inspection and transportation charges to 
the carrier's line.

                      List of Passenger-Train Cars

Automobile.
Baggage.
Baggage-express.
Baggage-mail.
Baggage-mail-express.
Buffet.
Cafe, chair, and club.
Dining.
Library.
Milk.
Observation.
Parlor.
Parlor-baggage.
Passenger.
Passenger-baggage.
Passenger-baggage-mail.
Postal.
Refrigerator-express.
Sleeping.
Smoking.
Tourists.

              List of Appurtenances to Passenger-Train Cars

Air-brake equipment including hose.
Bedding.
Chairs.
Coat hooks.
Curtains and fixtures.
Cushions.
Electric bells.
Floor coverings.
Heating equipment.
Ice boxes.
Ice tanks.
Kitchen equipment and utensils.
Lighting equipment.
Mail catchers.
Parcel racks.
Ranges and boilers.
Seats.
Speed recorders.
Steam-heat hose.
Table china.
Table glassware.
Table linen.
Table silver.
Toilet equipment.
Train-signal equipment, including hose.
Water tanks.

55 Highway revenue equipment.
    (a) This account shall include the cost of highway vehicles used in 
revenue transportation service, including pickup and delivery service, 
substitute line-haul service, and TOFC/COFC service; also the cost of 
appurtenances (such as radio communication equipment) necessary to equip 
them for service, and the inspection and transportation costs and 
charges required for delivery of the vehicles into the carrier's revenue 
service.
    (b) Records shall be maintained to identify the carrier's investment 
in the following equipment, including appurtenances:

                    List of Highway Revenue Equipment

Bogies.
Buses.
Chassis.
Containers.
Semi-trailers.
Tractors.
Trailers.
Trucks.

[[Page 63]]

           List of Appurtenances to Highway Revenue Equipment

Fire extinguishers.
Heating units.
Radio communication equipment.
Refrigeration units.
Rigging equipment.
Road dollies.
Tarpaulins.
    Note: The cost of trucks and tractors, which are used exclusively at 
TOFC/COFC terminals for loading and unloading trailers and containers on 
and from flat cars shall be charged to account 25, ``TOFC/COFC 
terminals.''

56 Floating equipment.
    This account shall include the cost of marine or floating equipment 
of all kinds except work equipment, purchased or built by the carrier, 
including all appurtenances, furniture, and fixtures necessary to equip 
it for service, and cost of inspection and transportation charges to the 
carrier's line.

                       List of Floating Equipment

Barges.
Canal boats.
Car and other floats.
Ferryboats.
Lighters.
Power launches.
Power lighters.
Scows.
Steam boats.
Steamships.
Transfer boats.
Tugboats.

               List f Appurtenances to Floating Equipment

Anchors.
Barometers.
Beds and bedding.
Binnacle lamps.
Blocks and tackle.
China, crockery, and glassware.
Chronometers.
Compasses.
Desks and furniture.
Engines and foundations.
Fire buckets and extinguishers.
Floor coverings.
Gangplanks.
Heating equipment
Hoisting equipment.
Kitchen equipment.
Life preservers.
Lighting equipment.
Linen.
Logs.
Machinery and foundations.
Masts.
Boilers and foundations.
Cables.
Capstan bars.
Charts.
Pianos and other musical instruments.
Pumps.
Railings.
Rigging.
Scales.
Seats, chairs, and cushions.
Spyglasses and telescopes.
Steam distribution systems.
Steering equipment.
Ticket cases.
Tool boxes and tools.
Tracks on car floats.
Ventilating equipment.

57 Work equipment.
    This account shall include the cost of work equipment, including 
motor-driven equipment, purchased or built by the carrier; cost of 
appurtenances, furniture, and fixtures necessary to equip it for 
service; and cost of inspection and transportation charges to the 
carrier's line.

                       List of Rail Work Equipment

Air-brake instruction cars.
Ballast cars.
Ballast unloader cars.
Boarding cars.
Bridge cars.
Business cars.
Camp cars.
Cinder cars.
Concrete mixers (mounted).
Derrick cars.
Dirt spreaders (mounted).
Ditching cars.
Dump cars.
Dynamometer cars.
Gas tank cars.
Grading cars.
Gravel cars.
Indicator cars.
Locomotive tanks used permanently as water cars.
Locomotives.
Officers' cars.
Outfit cars.
Painters' cars.
Pay cars.
Pile drivers (mounted).
Rail cars.
Rail saws (mounted).
Salt cars.
Sanding cars.
Scale test cars.
Scraper cars.
Snow dozers.
Snow drags.
Snow plows (moved by but not attached to locomotives).

[[Page 64]]

Sprinkling cars.
Steam shovels.
Steam wrecking derricks.
Supply cars.
Sweeper cars.
Tool cars.
Tool and block cars.
Water cars.
Weed burners (mounted).
Wrecking cars.

                     List of Floating Work Equipment

Derricks.
Dredges.
Pile drivers.

58 Miscellaneous equipment.
    (a) This account shall include the cost of automobiles, trucks and 
other highway equipment not used in revenue transportation service and 
not provided for elsewhere; the cost of airplanes; the cost of 
appurtenances (such as radio communication equipment) necessary to equip 
them for service; and the inspection and transportation costs and 
charges required for delivery of the vehicles to the carrier.
    (b) The cost of on and/or off-track automotive vehicles, which are 
permanently equipped with special-purpose machinery and used exclusively 
in maintenance of way and structures, shall be charged to account 37, 
Roadway machines.

                     List of Miscellaneous Equipment

Airplanes.
Automobiles.
Buses.
Emergency repair vehicles.
Road dollies.
Semi-trailers.
Tractors.
Trailers.
Trucks.
Wreckers.

            List of Appurtenances to Miscellaneous Equipment

Fire extinguisher.
Radio communication equipment.
Rigging equipment.
Tarpaulins.

59 Computer systems and word processing equipment.
    This account shall include the cost of mainframe and mini-computers 
and data processing equipment as well as the cost of word processing 
equipment that is not dedicated to a particular function. Essentially 
this account consists of all computer-related equipment that remains 
under the control of the data processing department. This account shall 
also include the cost of foundations, power supply, fixtures, 
appurtenances and other devices to prepare this equipment for use.

                                  Items

    Mainframes, Mini-computers, Word processing systems, Printers, 
Monitors, Modems, Storage devices.

    Note A: The cost of micro computers, data processing equipment, and 
word processing equipment which are an integral part of and essential to 
the operation of a separate facility shall be charged to the appropriate 
property account for that facility.
    Note B: Carriers desiring to adopt other methods of accounting for 
computers and word processing equipment that are considered more 
suitable for their operational structure shall submit justification and 
supporting documents to the Board for consideration and decision.

[52 FR 4326, Feb. 11, 1987]



General Expenditures--Table of Contents



70 General expenditures.
    The primary accounts of this general account are designed to include 
expenditures made in connection with the acquisition and construction of 
original road and equipment, and with extension, additions, and 
betterments to road and equipment property, when such expenditures 
cannot properly be included in any of the foregoing accounts as a part 
of the cost of any specific work. When assignable, such expenditures 
shall be included in the cost of the property for which the expenditures 
occurred.
76 Interest during construction.
    (a) When any bonds, notes, or other evidences of indebtedness are 
sold, or any interest-bearing debt is incurred for acquisition and 
construction of original road and equipment, extensions, additions, and 
betterments, the interest accruing on the part of the debt representing 
the cost of property chargeable to road and equipment accounts (less 
interest, if any, allowed by depositaries on unexpended balances) after 
such funds become available for

[[Page 65]]

use and before the receipt or the completion or coming into service of 
the property so acquired shall be charged to this account.
    (b) When such securities are sold at a premium, the proportion of 
such premium assignable to the time between the date of the actual 
issuance of the securities and the time when the property acquired or 
the improvement made becomes available for service shall be credited to 
this account.
    (c) This account shall also include such proportion of the discount 
and expense on funded debt issued for the acquisition of original road, 
original equipment, road extensions, additions, and betterments, as is 
equitably assignable to the period between the date of the actual 
issuance of securities and the time when the property acquired or the 
improvement made become available for the service for which it is 
intended. The proportion of discount and expense thus chargeable shall 
be determined by the ratio between the period prior to the completion or 
coming into service of the facilities or improvements acquired and the 
period of the entire life of the securities issued.

    Note A: Interest on bonds, notes, or other evidences of indebtedness 
accruing before the proceeds from the sale of the securities become 
available for use shall not be included in this account, nor shall there 
be included any interest accruing after the property with respect to 
which the proceeds are expended is received or becomes available for use 
in connection with commercial service.
    Note B: If securities issued or assumed by the carrier are 
subsequently sold or exchanged by or for the carrier, the excess of the 
par value and accrued interest of the securities over the actual money 
value of the consideration received shall be deemed a discount. In no 
case (except as provided in the third paragraph of this account) shall 
discount be included as part of the cost of items included in the 
accounts prescribed in this classification.
    Note C: Whenever interest, premium, or discount assignable to the 
construction period is incurred in connection with an expenditure 
covered by some specific road and equipment account or accounts, such 
interest, premium, or discount shall be charged directly to the specific 
accounts to which it is related. Unless provided for otherwise, interest 
costs shall be capitalized in accordance with generally accepted 
accounting principles.
    Note D: This account shall not include interest during the 
construction period on the carrier's own funds expended in connection 
with the acquisition or construction of original road and equipment, 
extensions, additions, and betterments.

(5 U.S.C. 553; 49 U.S.C. 10321)

[42 FR 35017, July 7, 1977, as amended at 46 FR 10920, Feb. 5, 1981]



Other Property Accounts--Table of Contents



80 Other elements of investment.
    (a) This account shall include amounts resulting from adjustment of 
the primary property accounts to conform with cost of property in 
valuation records. The amount in this account shall be cleared on a 
consistent basis as property is retired from service or otherwise in 
accordance with the rules in paragraphs (b), (c), and (d) of this 
account. Any material amount in this account assignable to property 
previously retired from service shall be cleared immediately.
    (b) When property is retired from service, an equitable portion of 
the balance in this account assignable to such property shall be cleared 
when the retirement entry is made. The amount so cleared, when a debit, 
shall be charged to account 551, Miscellaneous income charges, or, when 
a credit, shall be recorded in account 519, Miscellaneous income. The 
exception to this general rule with respect to a credit balance 
assignable to property retired is that when property classified as 
depreciable is retired from service and the balance in the accumulated 
depreciation account for the property is materially deficient, because 
of sudden retirement or other unusual cause, the portion of a credit 
balance cleared for the retirement, equal to the deficiency, shall be 
applied to reduce the amount of loss otherwise chargeable to the 
accumulated depreciation account.
    (c) A carrier may apply to the Board for authority to clear the 
entire balance from this account immediately or amortize the balance 
over a short period of time by appropriate inclusion in account 616, 
Other debits to retained earnings, or account 606 Other credits to 
retained earnings. Any amount so authorized or directed by the Board to 
be

[[Page 66]]

cleared and written off to retained income shall be in lieu of amounts 
includible in accounts indicated in paragraph (b).
    (d) Other plans for clearance, disposition, or classification of a 
balance in this account in conformity with sound accounting principles 
may be submitted to the Board with suitable details for consideration. 
This includes application for disposition of a balance in this account 
attributable to reduction of capitalization in a reorganization. An 
accounting procedure so applied for shall become effective only after 
Board approval. Each carrier shall maintain a record of items initially 
included in and cleared later from this account and the basis used in 
computing such items.
    Note: The amounts attributable to past mergers, consolidations and 
purchases of property included in this account shall be merged with the 
adjustment made pursuant to paragraph (a) of this text.
90 Construction in progress.
    This account shall include expenditures incurred by the carrier in 
the process of constructing road and equipment with its own forces or 
under contract during the period prior to the time property is placed in 
transportation operations, including cost of materials and supplies 
located at point of use and of necessary land acquired for such 
projects. When a project is completed or when a segment of a large 
project is completed and placed in service, the cost of the completed 
project or the completed segment thereof shall be transferred to the 
appropriate road and equipment primary accounts. Separate subaccounts 
may be maintained for road, equipment, or other classes of expenditures. 
Expenditures for relatively unimportant projects may be included 
directly in primary accounts.



RAILWAY OPERATING REVENUE ACCOUNTS--Table of Contents





Transportation Revenue Accounts--Table of Contents



100 Transportation; rail line.
    The primary accounts included in this general account are designed 
to show amounts of money which the carrier becomes entitled to receive 
or which accrue to its benefit from services rendered in transporting 
property or persons by rail line. The detail accounts include in this 
general account series are summarized in account 501, Railway Operating 
Revenues.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
101 Freight.
    (a) This account shall include revenue from the transportation of 
freight and from transit, stop, and reconsigning privileges, upon the 
basis of lawful tariff rates.
    (b) This account shall include collections in excess of tariff 
charges, except where such amounts are segregated and held subject to 
refund.
    (c) Proceeds derived from the sale of unclaimed and refused freight 
which has been transported in accordance with the contract of shipment 
shall be credited to this account in cases where such items can be 
readily identified. Uncollected tariff charges on such shipments shall 
be charged to this account.
    (d) Amounts determined to be uncollectible shall be accounted for in 
accordance with the text of account 63-61-00 General--Uncollectible 
accounts.

                          Items To Be Credited

    (a) Revenue upon the basis of local freight tariff rates, regardless 
of class of train in which the freight is transported.
    (b) The carrier's proportion of revenue upon the basis of through 
freight tariff rates, regardless of class of train on which the freight 
is transported.
    (c) Revenue from transportation of mail matter, and empty mail 
pouches, at freight rates.
    (d) Revenue from transportation of freight on special trains at 
rates based on weights of shipments.
    (e) Revenue on basis of classifications and freight tariffs from 
transportation of caretakers of freight shipments.
    (f) Revenue from reconsigning privileges.
    (g) Revenue from stop privileges.
    (h) Revenue from transit privileges.
    (i) Revenue upon the basis of arbitraries out of freight, rates for 
water transfers (ferriage, lighterage, and floatage).
    (j) Revenue from transportation of trailers and containers on flat 
cars in TOFC/COFC service upon the basis of all-rail line-haul freight 
tariff rates and under arrangements for motor carrier-railroad joint 
haul, and from the loading and unloading of trailers and containers on 
and from flat cars upon

[[Page 67]]

the basis of tariff rates and under arrangements for motor carrier-
railroad joint haul.

                           Items To Be Charged

    (a) Amounts paid as bridge and ferry arbitraries on freight.
    (b) Amounts paid for completing a haul.
    (c) Amounts paid for elevation of freight.
    (d) Amounts paid for switching services, in connection with the 
transportation of freight, on the basis of switching tariffs, and 
allowances out of through rates, including amounts paid for switching 
empty cars in connection with a freight revenue movement.
    (e) Amounts paid for transferring freight between stations.
    (f) Arbitraries and allowances to others for lighterage and 
wharfage.
    (g) The carrier's proportion of overcharges resulting from the use 
of erroneous rates, weights, classifications or computations.
    (h) The carrier's proportion of refunds on account of errors in 
routing and billing.
    (i) The carrier's proportion of uncollected revenue on freight lost 
or destroyed in transit.
    (j) The carrier's proportion of uncollected tariff charges on 
damaged shipments for which charges neither shipper nor consignee is 
liable.
    (k) Amounts paid on basis of tariff rates for loading and unloading 
livestock.
    (l) Amounts paid to motor truck companies for hauling trailers and 
containers to and from TOFC/COFC terminals, and allowances to shippers 
who perform such service on the basis of tariff rates.

    Note A: Amounts paid for switching empty cars other than in 
connection with loaded movements shall be charged to operating expense 
account 61-32-XX, ``General--Other Expenses--Transportation--Yard--
Freight,'' except that amounts paid for switching equipment for repairs 
shall be included in the appropriate equipment repair accounts.
    Note B: Other carriers' proportion of revenue and of uncollectible 
undercharges paid by the carrier on account of its errors in routing and 
billing shall be charged to operating expense account 61-35-76, 
``General--Other Expenses--Transportation--Administrative Support.''
    Note C: When a lessee company transports freight over the tracks of 
another carrier on the basis of a proportion of revenues under a joint 
arrangement, it shall include the entire compensation in its revenues 
and statistics, charging the appropriate joint facility expense and 
rental accounts with the amounts paid the lessor company, and the lessor 
company shall credit the corresponding accounts.
    Note D: Revenue from the transportation of caretakers of freight 
shipments, when not included as a part of the freight charges on the 
waybill covering the freight shipments, shall be credited to account 
102, ``Passenger.''
    Note E: This account shall be maintained so as to show separately 
payments and allowances for (a) terminal collection and delivery 
services when performed in connection with line-haul transportation of 
freight on the basis of freight tariff rates, further separated between 
(1) TOFC/COFC service, and (2) all other freight service; also (b) 
payments for switching services when performed in connection with line-
haul transportation of freight on the basis of switching tariffs and 
allowances out of freight rates, including the switching of empty cars 
in connection with a revenue movement, and (c) payments on basis of 
tariff rates for loading and unloading livestock.
102 Passenger.
    This account shall include the revenue from transportation of 
passengers at passenger tariff fares, from the transportation of 
passengers at special fares as provided by law, and from incidental 
charges in connection therewith.

                          Items To Be Credited

    (a) Revenue from local passenger fares.
    (b) The carrier's proportion of revenue from interline passenger 
fares.
    (c) Revenue from extra fares.
    (d) Revenue from additional fares or charges for exclusive use of a 
passenger car, drawing room, compartment, bedroom, etc.
    (e) Revenue from mileage and scrip coupons honored for all services 
covered by this account.
    (f) Revenue from transportation of passengers in special cars or on 
special trains when charge is based on passenger fare per capita, 
regardless of the number of passengers actually transported.
    (g) Revenue from a guaranteed minimum amount not based on per capita 
fare, for transportation of passengers on special or chartered trains.
    (h) Cash fare penalty collections.
    (i) Unclaimed collections and deposits for transportation of 
passengers.
    (j) Passenger fare overcharges.
    (k) Revenue from transportation of corpses, based on passenger 
fares.
    (l) Revenue from water transfers (ferriage), bridge tolls, and 
transfers between railway stations or between railway stations and 
docks, received as arbitraries in divisions of passenger fares.

                           Items To Be Charged

    (a) Amounts paid as bridge tolls, and also for ferry, depot to depot 
and depot to dock passenger transfer service.

[[Page 68]]

    (b) Amounts paid for switching in completing a passenger 
transportation movement.
    (c) Amounts paid for switching empty passenger-train cars in 
connection with transportation of passengers. (See note C.)
    (d) Redemptions of unused and partially unused local tickets and 
redemptions of carrier's proportions of unused and partially unused 
interline tickets.
    (e) Refund of extra fares, cash fare penalty collections, and 
overcharges in excess of tariff fares.
    (f) Uncollectible undercharges.

    Note A: Gross receipts from the sale of mileage tickets, and scrip 
books shall be credited to a suspense account. The suspense account 
shall be charged and this account credited with the value of coupons as 
honored, in connection with any of the services provided for in Items To 
Be Credited.
    Note B: When a lessee company transports passengers over the tracks 
of another company under a joint arrangement upon the basis of a 
proportion of the passenger revenue, it shall include the entire 
compensation in its passenger revenue and statistics, charging the 
appropriate joint facility expense and rental accounts with the amounts 
paid the lessor company and the lessor company shall credit the 
corresponding joint facility accounts.
    Note C: Amounts paid for switching empty passenger-train cars other 
than in connection with loaded movements, shall be charged to account 
61-42-XX. General--Other Expenses--Transportation--Yard--Passenger, 
except that when switched for repairs, the amounts paid shall be 
included in account 39-25-45, Purchased Services--Repairs Billed by 
Others--Equipment--Other Equipment.
    Note D: Amounts determined to be uncollectible shall be accounted 
for in accordance with the text of account 63-62-00, General--
Uncollectible accounts.
103 Passenger-related.
    This account shall include the revenue from the transportation of 
baggage, packages, etc. on passenger trains at other than freight or 
express tariff rates. This account shall also include the revenue from 
berth and seat accommodations furnished in sleeping, parlor observation, 
chair, and other special passenger cars, also the revenue derived from 
the operation of passenger trains not provided for elsewhere, and dining 
and buffet service.

The amounts recorded in this account shall not include aid in the form 
of abatement or forgiveness of taxes, assumption by local governments of 
station maintenance costs, and other similar special indirect benefits, 
contributed by governmental agencies.
104 Switching.
    (a) This account shall include the revenue from switching service 
upon the basis of lawful tariff rates. To this account shall be credited 
the carrier's revenue upon the basis of tariff rates, or the carrier's 
allowance out of through rates, from the switching of cars of all kinds, 
loaded or empty, either locally at a station or within a switching 
district, between connecting lines, between local industries, or between 
connecting lines and local industries; revenue upon the basis of 
distinct tariff rates for trapcar and ferry-car service and for spotting 
cars; also the revenue from interwork switching at industrial plants, 
and the revenue from penalty switching incident to the improper delivery 
of cars by other carriers.
    (b) To this account shall be charged amounts paid others for 
switching when such switching service is provided for in the switching 
rate charged by the carrier.
    Note: Penalty switching charges paid by the carrier shall be 
included in expense account 61-32-XX, General--Other Expenses--
Transportation--Yard--Freight.
105 Water transfers.
    (a) This account shall include the revenue, from the transfer by 
water (ferriage, lighterage, and floatage) of passenger, freight, 
vehicles and livestock, upon the basis of lawful local tariff rates.
    (b) This account also shall include revenue from water transfers of 
other traffic, such as the revenue from towing beyond lighterage limits 
and all other towing for which an extra charge is made; insurance of 
freight afloat when billed out at other than cost; storage of freight 
afloat; grain overage in boats; pumping performed for outside parties; 
and from other similar sources.
    (c) To this account shall be charged amounts payable to other 
companies or individuals for extra lighterage, extra towing, and for all 
other service when such payments represent revenue collected and 
credited to this account and not a direct expense.

[[Page 69]]

    Note: No revenue shall be included in this account for water 
transfers of passengers or shipments upon the basis of arbitraries out 
of rates for transportation involving rail line haul.
106 Demurrage.
    This account shall include the revenue from the detention of cars 
incident to loading, unloading, reconsigning, and stops in transit upon 
the basis of lawful tariffs for demurrage. This account shall also 
include the revenue from the detention of trailers and containers used 
in TOFC/COFC service, incident to loading and unloading, upon the basis 
of tariff rates.
    Note: This account shall be maintained so as to reflect separately 
(1) revenue from detention of cars, and (2) revenue from detention of 
trailers and containers used in TOFC/COFC service.
110 Incidental.
    This account is designed to show the amounts which the carrier 
becomes entitled to receive from services rendered incidentally with 
rail-line and water-line transportation; for the use of facilities of 
which the expenses for operation and maintenance are not separable from 
railway expenses and from incidental sources not provided for elsewhere. 
Among the items included in this account are revenues derived from (1) 
hotels and restaurants, (2) operations conducted at stations and on 
trains by individual or companies other than railway companies, (3) 
storage, (4) the sale of electric power, (5) renting property operated 
and maintained in connection with the property used in the carrier's 
transportation operations and from railway operations not provided for 
elsewhere.



Joint Facility Revenue Accounts--Table of Contents



120 Joint facility.
    The primary accounts included in this general account are designed 
to show the carrier's proportion of revenues collected by others in 
connection with operation of joint facilities and the amount payable by 
the carrier to other companies from operation of joint facilities.
121 Joint facility--credit.
    This account shall include the carrier's proportion of revenue 
collected by others in connection with the operation of joint tracks, 
yards, terminals, and other facilities, including revenue from hotels, 
restaurants, grain elevators, sale of power, and other miscellaneous 
operations.

    Note A: The purpose of this account is to show the amounts of 
revenue from the operation of joint tracks, yards, terminals and other 
facilities operated by other companies, which under existing contracts 
or agreements are credited by the operating company to the tenant 
companies which participate therein. The bill rendered by any creditor 
company against a debtor company for the latter's proportion of the 
expense of maintenance and operation of joint facilities, which includes 
also a credit covering a proportion of the revenue to be paid over, 
shall show the distribution of the credit for such proportion of the 
revenue separately from the distribution of the expense of operation.
    Note B: No credits shall be made to this account representing 
amounts creditable by the operating company to primary accounts 101-103, 
105 and 110.
122 Joint facility--debit.
    This account shall include that proportion of revenue from the 
operation of joint tracks, yards, terminals, and other facilities, which 
is creditable to other companies, including revenue from hotels, 
restaurants, grain elevators, sale of power, and other miscellaneous 
operations.

    Note A: The purpose of this account is to show the amount of revenue 
from operation of a terminal company or other carrier which, under the 
terms of existing contracts or agreements covering the joint use of 
tracks, yards, and other facilities, is credited to other carriers that 
participate in the benefits from such joint use. The bill rendered by a 
creditor company against a debtor company for the latter's proportion of 
expense of maintaining and operating joint facilities, which includes a 
credit covering the debtor company's proportion of the revenues from 
operation of such joint facilities, shall indicate separately the proper 
distribution of both the revenues and the expenses included in the bill, 
and such distribution shall be adhered to by the debtor.
    Note B: No debits shall be made to this account representing amounts 
creditable by the operating company to primary accounts 101-103, 105 and 
110.

[[Page 70]]



OPERATING EXPENSE ACCOUNTS--Table of Contents



    Source: 52 FR 4326, Feb. 11, 1987, unless otherwise noted.

                               Instruction

    (1) The operating expense accounts use a six-digit code. The first 
two digits denote natural expense, the second two digits denote 
activity/subactivity, and the third two digits denote detailed 
functions. [See Table A for an overview of the coding structure and 
Tables B-E for detailed functions.]
    (2) The operating expense account explanations use a three-tier 
format. Section 1 contains natural expense explanations with applicable 
activity/subactivity and function assignment. Section 2 details the 
activity/subactivity explanations. Section 3 explains the functions 
appropriate for each activity/subactivity. To obtain a complete 
explanation for a particular account, refer to section 1 to locate the 
natural expense and activity/subactivity (first four digits) and read 
the appropriate account text. Accounts that are assigned to functions 
are appropriately listed. For further information, refer to section 2 
and section 3.
    (3) All accounts listed in Table A and section 1 are for freight 
only. Refer to Table F for applicable passenger or common account codes. 
Account numbers designated with an asterisk in section 1 denote freight 
only accounts, while other accounts are used for both freight and 
passenger or common accounts.
    (4) All expense assigned to common operating accounts shall be 
allocated to freight and passenger accounts in accordance with part 1242 
of this chapter.

[[Page 71]]



                                                              Table A--Coding Structure for Railway Operating Expense Accounts \1\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     XX-00     Way and structures XX-10           Equipment XX-20                      Transportation XX-30, 40, 50                    XX-60
                                                   ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                             Train
                                                                                                      Freight    Other                        and    Specialized  Administrative    General and
                                                    Control  Running  Switching   Other   Locomotive    cars   equipment   Train     Yard     yard       SVDS         support     administrative
                                                                                                                                             common
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Freight \2\.......................................    XX-00    XX-11     XX-12     XX-13      XX-21     XX-22     XX-23     XX-31    XX-32    XX-33      XX-34          XX-35           XX-61
Personnel.........................................    10-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............  ..............
    Salaries and wages............................    11-00  \3\ 11-  \3\ 11-12  \3\ 11-  \3\ 11-21   \3\ 11-     11-23   \3\ 11-  \3\ 11-  \3\ 11-  \3\ 11-34      \3\ 11-35       \3\ 11-61
                                                                  11                  13                   22                  31       32       33
    Fringe benefits...............................    12-00    12-11     12-12     12-13      12-21     12-22     12-23     12-31    12-32    12-33      12-34          12-35           12-61
Materiel..........................................    20-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............  ..............
    Materiel, tools, supp, fuel, lubricants.......    21-00  \3\ 21-  \3\ 21-12  \3\ 21-  \3\ 21-21   \3\ 21-  \3\ 21-23  \3\ 21-  \3\ 21-  \3\ 21-  \3\ 21-34      \3\ 21-35       \3\ 21-61
                                                                  11                  13                   22                  31       32       33
Purchased services................................    30-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............  ..............
    Lease rentals--DR.............................    31-00    31-11     31-12     31-13      31-21     31-22     31-23   .......  .......  .......  ...........  ..............  ..............
    Lease rentals--CR.............................    32-00    32-11     32-12     32-13      32-21     32-22     32-23   .......  .......  .......  ...........  ..............  ..............
    Jt. Fac. Rent--DR.............................    33-00    33-11     33-12     33-13      33-21     33-22     33-23   .......  .......  .......  ...........  ..............  ..............
    Jt. Fac. Rent--CR.............................    34-00    34-11     34-12     34-13      34-21     34-22     34-23   .......  .......  .......  ...........  ..............  ..............
    Other rents--DR...............................    35-00    35-11     35-12     35-13      35-21     35-22     35-23   .......  .......  .......  ...........  ..............  ..............
    Other rents--CR...............................    36-00    36-11     36-12     36-13      36-21     36-22     36-23   .......  .......  .......  ...........  ..............  ..............
    Jt. facility--DR..............................    37-00    37-11     37-12     37-13      37-21     37-22     37-23     37-31    37-32  .......      37-34          37-35           37-61
    Jt. facility--CR..............................    38-00    38-11     38-12     38-13      38-21     38-22     38-23     38-31    38-32  .......      38-34          38-35           38-61
    Repairs billed by others--DR..................    39-00  \3\ 39-  \3\ 39-12  \3\ 39-  \3\ 39-21   \3\ 39-  \3\ 39-23  .......  .......  .......  ...........  ..............  ..............
                                                                  11                  13                   22
    Repairs billed to others--CR..................    40-00  \3\ 40-  \3\ 40-12  \3\ 40-  \3\ 40-21   \3\ 40-  \3\ 40-23  .......  .......  .......  ...........  ..............  ..............
                                                                  11                  13                   22
    Other purchase services.......................    41-00  \3\ 41-  \3\ 41-12  \3\ 41-  \3\ 41-21   \3\ 41-  \3\ 41-23  \3\ 41-  \3\ 41-  \3\ 41-  \3\ 41-34      \3\ 41-35       \3\ 41-61
                                                                  11                  13                   22                  31       32       33
Claims and insurance..............................    50-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............  ..............
    Loss damage claims............................    51-00  .......  .........  .......  ..........  .......  .........    51-31    51-32    51-33      51-34    ..............  ..............
    Other casualties..............................    52-00    52-11     52-12     52-13      52-21     52-22     52-23     52-31    52-32  .......      52-34          52-35           52-61
    Insurance.....................................    53-00    53-11     53-12     53-13      53-21     53-22     53-23     53-31    53-32  .......      53-34          53-35           53-61
General...........................................    60-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............  ..............
    Other expenses................................    61-00  \3\ 61-  \3\ 61-12  \3\ 61-  \3\ 61-21   \3\ 61-  \3\ 61-23  \3\ 61-  \3\ 61-  .......  \3\ 61-34      \3\ 61-35       \3\ 61-61
                                                                  11                  13                   22                  31       32
    Depreciation..................................    62-00    62-11     62-12     62-13      62-21     62-22     62-23   .......  .......  .......  ...........  ..............  ..............
    Uncollectible account.........................    63-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............        63-61
    Property taxes................................    64-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............        64-61
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Each operating expense account has a six-digit code divided into three two-digit groups. The first two-digit group denotes the natural expense [see control column], the second group
  denotes the activity/subactivity for freight, passenger or common service [see Table F]; and the third group signifies applicable function assignment [see Tables B, C, D & E].
\2\ The account numbers shown on this matrix are for freight only. The account numbers for passenger and common are derived by applying the natural expense code (first two digits) to the
  activity codes shown in Table F. Natural expenses are used only in the same activities as shown for freight.
\3\ Expenses shall be reported by applicable functions [see account text].


[[Page 72]]


                                 Table B--Function Code Use--Way and Structures
----------------------------------------------------------------------------------------------------------------
                                                                        Running       Switching        Other
                                                                    --------------------------------------------
 Code                            Functions                           \1\
                                                                      F    P    C    F    P    C    F    P    C
----------------------------------------------------------------------------------------------------------------
                               ADMINISTRATION
    02  Track......................................................  ...  ...  ...  ...  ...  ...    X    X    X
    03  Bridges and buildings......................................  ...  ...  ...  ...  ...  ...    X    X    X
    04  Signals....................................................  ...  ...  ...  ...  ...  ...    X    X    X
    05  Communications.............................................  ...  ...  ...  ...  ...  ...    X    X    X
    06  Other......................................................  ...  ...  ...  ...  ...  ...    X    X    X
                          REPAIRS AND MAINTENANCE
    10  Roadway....................................................    X    X    X    X    X    X  ...  ...  ...
    11  Tunnels and subways........................................    X    X    X    X    X    X  ...  ...  ...
    12  Bridges and culverts.......................................    X    X    X    X    X    X  ...  ...  ...
    13  Ties.......................................................    X    X    X    X    X    X  ...  ...  ...
    14  Rails and other track material.............................    X    X    X    X    X    X  ...  ...  ...
    16  Ballast....................................................    X    X    X    X    X    X  ...  ...  ...
    19  Signals and interlockers...................................    X    X    X    X    X    X  ...  ...  ...
    20  Communication systems......................................  ...  ...  ...  ...  ...  ...    X    X    X
    21  Power systems..............................................  ...  ...  ...  ...  ...  ...    X    X    X
    22  Highway grade crossings....................................    X    X    X    X    X    X  ...  ...  ...
    23  Station and office buildings...............................  ...  ...  ...  ...  ...  ...    X    X    X
    24  Shop bldgs.--Locomotives...................................  ...  ...  ...  ...  ...  ...    X    X    X
    25  Shop bldgs.--Freight cars..................................  ...  ...  ...  ...  ...  ...    X
    26  Shop bldgs.--Other equipment...............................  ...  ...  ...  ...  ...  ...    X    X    X
    27  Locomotive servicing facilities............................  ...  ...  ...  ...  ...  ...    X    X    X
    28  Misc. buildings and structures.............................  ...  ...  ...  ...  ...  ...    X    X    X
    29  Coal terminals.............................................  ...  ...  ...  ...  ...  ...    X
    30  Ore terminals..............................................  ...  ...  ...  ...  ...  ...    X
    31  TOFC/COFC terminals........................................  ...  ...  ...  ...  ...  ...    X
    32  Other marine terminals.....................................  ...  ...  ...  ...  ...  ...    X
    33  Motor vehicle loading and distribution facilities..........  ...  ...  ...  ...  ...  ...    X
    35  Facilities--Other specialized services operations..........  ...  ...  ...  ...  ...  ...    X
    36  Roadway machines...........................................  ...  ...  ...  ...  ...  ...    X    X    X
    37  Small tools and supplies...................................  ...  ...  ...  ...  ...  ...    X    X    X
    38  Snow removal...............................................  ...  ...  ...  ...  ...  ...    X    X    X
    39  Dismantling retired property...............................    X    X    X    X    X    X    X    X    X
    48  Road property damaged......................................    X    X    X    X    X    X    X    X    X
                                   OTHER
    99  Other......................................................    X    X    X    X    X    X    X    X    X
----------------------------------------------------------------------------------------------------------------
\1\ F--Freight; P--Passenger; C--Common.


                                      Table C--Function Code Use--Equipment
----------------------------------------------------------------------------------------------------------------
                                                                      Locomotives    Freight Cars      Other
                                                                   -------------------------------   Equipment
 Code                            Functions                                                        --------------
                                                                    \1\F   P    C    F    P    C    F    P    C
----------------------------------------------------------------------------------------------------------------
                              ADMINISTRATION
    01  Administration............................................     X    X    X    X  ...  ...    X    X    X
                          REPAIR AND MAINTENANCE
    39  Dismantling retired property..............................     X    X    X    X  ...  ...    X    X    X
    41  Locomotives...............................................     X    X    X  ...  ...  ...  ...  ...  ...
    42  Freight cars..............................................  ....  ...  ...    X  ...  ...  ...  ...  ...
    43  Trucks, trailers, containers in revenue service...........  ....  ...  ...  ...  ...  ...    X  ...  ...
    44  Floating equipment in revenue service.....................  ....  ...  ...  ...  ...  ...    X  ...  ...
    45  Passenger and other revenue equipment.....................  ....  ...  ...  ...  ...  ...    X    X    X
    46  Computer systems and word processing equipment............  ....  ...  ...  ...  ...  ...    X    X    X
    47  Work and other nonrevenue equipment.......................  ....  ...  ...  ...  ...  ...    X    X    X
    48  Equipment damaged.........................................     X    X    X    X  ...  ...    X    X    X
    49  Shop machinery--locomotives...............................  ....  ...  ...  ...  ...  ...    X    X    X
    50  Shop machinery--freight cars..............................  ....  ...  ...  ...  ...  ...    X    X    X
    51  Shop machinery--other equipment...........................  ....  ...  ...  ...  ...  ...    X    X    X
    99  Other.....................................................     X    X    X    X  ...  ...    X    X    X
----------------------------------------------------------------------------------------------------------------
\1\ F--Freight; P--Passenger; C--Common.


[[Page 73]]


                                   Table D--Function Code Use--Transportation
----------------------------------------------------------------------------------------------------------------
                                          Train           Yard        Train and     Specialized   Administrative
                                     ------------------------------  yard common      services        support
 Code                                                              ---------------------------------------------
                                       *F   P    C    F    P    C    F    P    C    F    P    C     F    P    C
----------------------------------------------------------------------------------------------------------------
               ADMINISTRATION
    01  ............................    X    X    X    X    X    X  ...  ...  ...    X  ...  ...     X    X    X
                 OPERATIONS
    56  Engine......................    X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
    57  Train crews.................    X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
    58  Dispatching trains..........    X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
    59  Operating switches, signals,    X    X    X    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
         interlockers, retarders,
         humps......................
    60  Operating drawbridges.......    X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
    61  Highway crossing protection.    X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
    62  Train inspection and            X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
         lubrication................
    63  Clearing wrecks.............    X    X    X    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
    64  Switch crews................  ...  ...  ...    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
    65  Controlling operations......  ...  ...  ...    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
    66  Yard and terminal clerical..  ...  ...  ...    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
    67  Locomotive fuel.............    X    X    X    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
    68  Power purchased/produced for    X    X    X    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
         motive power...............
    69  Servicing locomotives.......    X    X    X    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
    70  Cleaning car interior.......  ...  ...  ...  ...  ...  ...    X    X    X  ...  ...  ...  ....  ...  ...
    71  Adjusting, transferring       ...  ...  ...  ...  ...  ...    X  ...  ...  ...  ...  ...  ....  ...  ...
         loads......................
    72  Car loading devices and       ...  ...  ...  ...  ...  ...    X  ...  ...  ...  ...  ...  ....  ...  ...
         grain doors................
    73  Pick up and delivery, marine  ...  ...  ...  ...  ...  ...  ...  ...  ...    X  ...  ...  ....  ...  ...
         haul, rail substitute
         service....................
    74  Loading, unloading, local     ...  ...  ...  ...  ...  ...  ...  ...  ...    X  ...  ...  ....  ...  ...
         marine.....................
    75  Protective services.........  ...  ...  ...  ...  ...  ...  ...  ...  ...    X  ...  ...  ....  ...  ...
    76  Clerks and accounting         ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...     X    X    X
         employees..................
    77  Communications systems        ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...     X    X    X
         operations.................
    78  Loss and damage claims        ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...     X    X    X
         processing.................
                    OTHER
    99  Other.......................    X    X    X    X    X    X  ...  ...  ...    X  ...  ...     X    X    X
----------------------------------------------------------------------------------------------------------------


[[Page 74]]


        Table E--Functional Code Use--General and Administrative
------------------------------------------------------------------------
 Code             Functions             Freight    Passenger    Common
------------------------------------------------------------------------
               ADMINISTRATION
        Administration..............           X           X           X
                   GENERAL
    86  Accounting, auditing,                  X           X           X
         finance....................
    87  Management services and data           X           X           X
         and word processing........
    88  Marketing...................           X           X           X
    89  Sales.......................           X           X           X
    90  Industrial development......           X
    91  Personnel, labor relations..           X           X           X
    92  Legal and secretarial.......           X           X           X
    93  Public relations and                   X           X           X
         advertising................
    94  Research and development....           X           X           X
                    OTHER
    99  Other.......................           X           X           X
------------------------------------------------------------------------


                 Table F--Activity/Subactivity Code Use
------------------------------------------------------------------------
                                                    Code
       Activity/subactivity          Freight     passenger      Common
------------------------------------------------------------------------
Way and structures:
    Running......................           11           14           17
    Switching....................           12           15           18
    Other........................           13           16           19
Equipment:
    Locomotives..................           21           24           26
    Freight cars.................           22          N/A          N/A
    Other........................           23           25           27
Transportation:
    Train........................           31           41           51
    Yard.........................           32           42           52
    Train and yard common........           33           43           53
    Specialized services.........           34          N/A          N/A
    Administrative support.......           35           45           55
General and administrative.......           61           62           63
------------------------------------------------------------------------



OPERATING EXPENSE ACCOUNTS--Table of Contents



                Section 1--Natural Expense Explanations*



Personnel--Table of Contents



Control--10-00-00
    This account may be used as a control account for all accounts in 
the Personnel Series: Salaries and Wages. Fringe Benefits Not Included 
in Compensation.
Salaries and Wages--Control 11-00-00
    This account series includes the compensation payable to employees 
for services performed. It includes amounts payable in connection with 
profit sharing and stock option plans that are part of employee 
compensation. This account series also includes amounts of compensation 
payable to employees for paid time off as a fringe benefit: Vacation 
pay, holiday pay, sick pay, and other payments considered direct 
compensation for time not worked. Amounts of labor billed by 
contractors, other companies, and joint facilities, are not considered 
salaries and wages of the carrier company and are not to be included in 
this account group. Its components shall be distributed to the following 
accounts in accordance with Instruction 1-12.
Salaries and Wages--Way and Structures--Running--11-11-XX

    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's roadway and track on the line of road and 
outside of classification yards. Compensation payable to officers and 
technical and clerical employees shall only be assigned to Way and 
Structures--Other. This account shall be subdivided by the following 
functions:

Repair and Maintenance:
    Roadway.................................................    11-11-10
    Tunnels and Subways.....................................    11-11-11
    Bridges and Culverts....................................    11-11-12

[[Page 75]]

 
    Ties....................................................    11-11-13
    Rails and Other Track Material..........................    11-11-14
    Ballast.................................................    11-11-16
    Signals and Interlockers................................    11-11-19
    Highway Grade Crossings.................................    11-11-22
    Dismantling Retired Property............................    11-11-39
    Road Property and Equipment Damaged.....................    11-11-48
Other--Other................................................    11-11-99
 

Salaries and Wages--Way and Structures--Switching--11-12-XX
    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's roadway and track within classification 
yards and stations. Compensation payable to officers and technical and 
clerical employees shall be assigned to Way and Structures--Other. This 
account shall be subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    11-12-10
    Tunnels and Subways.....................................    11-12-11
    Bridges and Culverts....................................    11-12-12
    Ties....................................................    11-12-13
    Rails and Other Track Material..........................    11-12-14
    Ballast.................................................    11-12-16
    Signals and Interlockers................................    11-12-19
    Highway Grade Crossings.................................    11-12-22
    Dismantling Retired Property............................    11-12-39
    Road Property and Equipment Damaged.....................    11-12-48
    Other--Other............................................    11-12-99
 

Salaries and Wages--Way and Structures--Other--11-13-XX
    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's structures other than roadway and track. 
Each administration account (functions 02-06) includes the compensation 
payable to all officers and technical and clerical employees associated 
with the Way and Structures Activity. This account shall be subdivided 
by the following functions:

Administration:
    Track...................................................    11-13-02
    Bridges and Buildings...................................    11-13-03
    Signals.................................................    11-13-04
    Communications..........................................    11-13-05
    Other...................................................    11-13-06
Repair and Maintenance:
    Communication Systems...................................    11-13-20
    Power Systems...........................................    11-13-21
    Station and Office Buildings............................    11-13-23
    Shop Buildings--Locomotives.............................    11-13-24
    Shop Buildings--Freight Cars............................   *11-13-25
    Shop Buildings--Other...................................    11-13-26
    Locomotive Servicing Facilities.........................    11-13-27
    Miscellaneous Buildings and Structures..................   *11-13-28
    Coal Terminals..........................................   *11-13-29
    Ore Terminals...........................................   *11-13-30
    TOFC/COFC Terminals.....................................   *11-13-31
    Other Marine Terminals..................................   *11-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *11-13-33
    Facilities for Other Specialized Services Operations....   *11-13-35
    Roadway Machines........................................    11-13-36
    Snow Removal............................................    11-13-38
    Dismantling Retired Property............................    11-13-39
    Road Property and Equipment Damaged.....................    11-13-48
    Other--Other............................................    11-13-99
 

Salaries and Wages--Equipment--Locomotives--11-21-XX
    This account includes the compensation payable to all officers and 
technical and clerical employees, repair and maintenance employees, and 
others who are associated with the repair and maintenance of 
locomotives, whether owned by the carrier or by others. This account 
shall be subdivided by the following functions:

Administration--General.....................................    11-21-01
Repair and Maintenance:
    Dismantling Retired Property............................    11-21-39
    Locomotives.............................................    11-21-41
    Road Property and Equipment Damaged.....................    11-21-48
Other--Other................................................    11-21-99
 

Salaries and Wages--Equipment--Freight Cars--11-22-XX*
    This account includes the compensation payable to all officers, 
technical and clerical employees, repair and maintenance employees, and 
others, who are associated with the repair and maintenance of freight 
cars, whether owned by the carrier or by others. This account shall be 
subdivided by the following functions:

Administration--General.....................................    11-22-01
Repair and Maintenance:
    Dismantling Retired Property............................    11-22-39
    Freight Cars............................................    11-22-42
    Road Property and Equipment Damaged.....................    11-22-48
Other--Other................................................    11-22-99
 

Salaries and Wages--Equipment--Other Equipment--11-23-XX
    This account includes the compensation payable to all officers, 
technical and clerical employees, repair and maintenance employees, and 
others, who are associated with the repair and maintenance of equipment 
other than locomotives and freight cars, whether

[[Page 76]]

owned by the carrier or by others. This account shall be subdivided by 
the following functions:

Administration--General.....................................    11-23-01
Repair and Maintenance:
    Dismantling Retired Property............................    11-23-39
    Trucks, Trailers, Containers in Revenue Service.........   *11-23-43
    Floating Equipment--Revenue Service.....................   *11-23-44
    Passenger and Other Revenue Service.....................    11-23-45
    Work and Other Non-Revenue Equipment....................    11-23-47
    Road Property and Equipment Damaged.....................    11-23-48
    Shop Machinery--Locomotives.............................    11-23-49
    Shop Machinery--Other Equipment.........................    11-23-51
Other--Other................................................    11-23-99
 

Salaries and Wages--Transportation--Train--11-31-XX
    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees, who are associated with the dispatching and 
operation of freight trains over the roadway and outside of 
classification yards. This account shall be subdivided by the following 
functions:

Administration--General.....................................    11-31-01
Operations:
    Engine Crews............................................    11-31-56
    Train Crews.............................................    11-31-57
    Dispatching Trains......................................    11-31-58
    Operating Switches, Signals, Interlockers, Retarders,       11-31-59
     Humps..................................................
    Operating Drawbridges...................................    11-31-60
    Highway Crossing Protection.............................    11-31-61
    Train Inspection and Lubrication........................    11-31-62
    Clearing Wrecks.........................................    11-31-63
    Locomotive Fuel.........................................    11-31-67
    Electric Power Purchased/Produced for Motive Power......    11-31-68
    Servicing Locomotives...................................    11-31-69
Other--Other................................................    11-31-99
 

Salaries and Wages--Transportation--Yard--11-32-XX
    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees, who are associated with the movement of freight 
cars within classification yards and in terminal switching and transfer 
service. This account shall be subdivided by the following functions:

Administration--General.....................................    11-32-01
Operations:
    Operating Switches, Signals, Interlockers, Retarders,       11-32-59
     Humps..................................................
    Clearing Wrecks.........................................    11-32-63
    Switch Crews............................................    11-32-64
    Controlling Operations..................................    11-32-65
    Yard and Terminal Clerical..............................    11-32-66
    Locomotive Fuel.........................................    11-32-67
    Electric Power Purchased/Produced for Motive Power......    11-32-68
    Servicing Locomotives...................................    11-32-69
Other--Other................................................    11-32-99
 

Salaries and Wages--Transportation--Train and Yard--Common--11-33-XX
    This account includes the compensation payable to all officers, 
performing functions incurred on behalf of both train and yard 
operations. This account shall be subdivided by the following functions:

Operations:
    Cleaning Car Interiors..................................    11-33-70
    Adjusting and Transferring Loads........................   *11-33-71
    Car Loading Devices and Grain Doors.....................   *11-33-72
 

Salaries and Wages--Transportation--Specialized Services--11-34-XX*
    This account includes the compensation payable to all officers, 
technical and clerical employees, and other operational employees who 
are associated with operating services which are specialized in nature 
and in cost characteristics. The specialized services designated by the 
Board appear within the explanation of activities/subactivities. This 
account shall be subdivided by the following functions:

Administration--General.....................................    11-34-01
Operations:
    Pick Up and Delivery, Marine Line Haul, and Rail            11-34-73
     Substitute Service.....................................
    Loading, Unloading, and Local Marine....................    11-34-74
    Protective Services.....................................    11-34-75
Other--Other................................................    11-34-99
 

Salaries and Wages--Transportation--Administrative Support--11-35-XX
    This account includes the compensation payable to all officers, are 
associated with providing direct administrative support for the 
Transportation Activity. For further clarification refer to the 
explanation of the Administrative Support Operations Subactivity. Each 
account shall be subdivided by the following functions:

Administration--General.....................................    11-35-01
Operations:
    Clerical and Accounting Employees.......................    11-35-76
    Communication Systems Operations........................    11-35-77

[[Page 77]]

 
    Loss and Damage Claims Processing.......................    11-35-78
Other--Other................................................    11-35-99
 

Salaries and Wages--General and Administrative--11-61-XX
    This account includes the compensation payable to all employees who 
are associated with overall administration or other general support for 
carrier operations. Overall administration includes executive, legal, 
financial, treasury, accounting, budgeting, taxation, corporate 
planning, costing, marketing, advertising, traffic, corporate secretary, 
public relations, real estate, insurance administration, personnel 
administration, pension plan administration, general purchasing, labor 
relations, internal auditing, industrial engineering, and regulatory 
reporting. For further clarification refer to the explanation of the 
General and Administrative Activity. This account shall be subdivided by 
the following functions:

Administration--General.....................................    11-61-01
General:
    Accounting, Auditing, Finance...........................    11-61-86
    Marketing...............................................    11-61-88
    Sales...................................................    11-61-89
    Industrial Development..................................   *11-61-90
    Personnel and Labor Relations...........................    11-61-91
    Legal and Secretarial...................................    11-61-92
    Public Relations and Advertising........................    11-61-93
    Research and Development................................    11-61-94
Other--Other................................................    11-61-99
 

Fringe Benefits Not Included in Compensation--Control--12-00-00
    This account series includes amounts payable to others, or other 
costs charged to expense, for employee benefits which are not considered 
part of direct compensation. These benefits include the carrier portions 
of Railroad Retirement contributions, pension expense, unemployment 
taxes, dental plans, health plans, hospitalization insurance, life 
insurance, subsidies for employee lunchrooms, company entertainment 
facilities for personal use, and other benefits to employees that are 
not includible in direct compensation. They exclude travel expense on 
company business, casualties, workmen's compensation, as well as dues, 
memberships, and similar items when the direct beneficiary is clearly 
the company rather than the employee.

Fringe Benefits Not Included in Compensation--Way and           12-11-00
 Structures--Running........................................
Fringe Benefits Not Included in Compensation--Way and           12-12-00
 Structures--Switching......................................
Fringe Benefits Not Included in Compensation--Way and           12-13-00
 Structures--Other..........................................
Fringe Benefits Not Included in Compensation--Equipment         12-21-00
 Locomotives................................................
Fringe Benefits Not Included in Compensation--Equipment--      *12-22-00
 Freight Cars...............................................
Fringe Benefits Not Included in Compensation--Equipment--       12-23-00
 Other Equipment............................................
Fringe Benefits Not Included in Compensation--                  12-31-00
 Transportation--Train......................................
Fringe Benefits Not Included in Compensation--                  12-32-00
 Transportation--Yard.......................................
Fringe Benefits Not Included in Compensation--                  12-33-00
 Transportation--Train and Yard Common......................
Fringe Benefits Not Included in Compensation--                  12-34-00
 Transportation--Specialized Services.......................
Fringe Benefits Not Included in Compensation--                  12-35-00
 Transportation--Administrative Support.....................
Fringe Benefits Not Included in Compensation--General and       12-61-00
 Administrative.............................................
 

Materiel Control--20-00-00
    This account may be used as a control account for the Materiel 
series: Materials, Tools, Supplies, Fuels, Lubricants.
Materials, Tools, Supplies, Fuels, Lubricants--Control--21-00-00
    This account group includes the cost of items installed or 
commodities consumed which are charged to expense in connection with 
carrier operations. This account group includes charges to expense for 
all materials, small tools, supplies, fuels, lubricants, purchased 
standard stationery and forms, freight-in on materials and supplies, and 
similar items. This account group excludes purchased services such as 
utilities, communications, postage and other items of similar nature. 
Its components shall be distributed to the following accounts:

[[Page 78]]

Materials, Tools, Supplies, Fuels, Lubricants--Way and Structures--
Running--21-11-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's roadway and track on the line of the road and outside of 
classification yards. Each account includes charges to expense for all 
materials, small tools, supplies, fuels, lubricants, purchased standard 
stationery and forms, freight-in on materials, and supplies, and similar 
items. Its components shall be distributed to the following functions in 
accordance with Instruction 1-18:

Repair and Maintenance:
    Roadway.................................................    21-11-10
    Tunnels and Subways.....................................    21-11-11
    Bridges and Culverts....................................    21-11-12
    Ties....................................................    21-11-13
    Rails and Other Track Material..........................    21-11-14
    Ballast.................................................    21-11-16
    Signals and Interlockers................................    21-11-19
    Dismantling Retired Property............................    21-11-39
    Road Property and Equipment Damaged.....................    21-11-48
    Other--Other............................................    21-11-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Way and Structures--
Switching--21-12-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's roadway and track within classification yards and stations. 
This account includes charges to expense for all materials, small tools, 
supplies, fuels, lubricants, purchased standard stationery and forms, 
freight-in on materials and supplies, and similar items. Its components 
shall be distributed to the following functions in accordance with 
Instruction 1-18:

Repair and Maintenance:
    Roadway.................................................    21-12-10
    Tunnels and Subways.....................................    21-12-11
    Bridges and Culverts....................................    21-12-12
    Ties....................................................    21-12-13
    Rails and Other Track Material..........................    21-12-14
    Ballast.................................................    21-12-16
    Signals and Interlockers................................    21-12-19
    Highway Grade Crossings.................................    21-12-22
    Dismantling Retired Property............................    21-12-29
    Road Property and Equipment Damaged.....................    21-12-48
 


Materials, Tools, Supplies, Fuels, Lubricants--Way and Structures--
Other--21-13-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's structures not provided for in running or switching. Each 
account includes charges to expense for all materials, small tools, 
supplies, fuels, lubricants, purchased standard stationery and forms, 
freight-in on materials and supplies, and similar items. Its components 
shall be distributed to the following functions in accordance with 
Instruction 1-18:

Administration:
    Track...................................................    21-13-02
    Bridges and Buildings...................................    21-13-03
    Signals.................................................    21-13-04
    Communications..........................................    21-13-05
    Other...................................................    21-13-06
Repair and Maintenance:
    Communication Systems...................................    21-13-20
    Power Systems...........................................    21-13-21
    Station and Office Buildings............................    21-13-23
    Shop Buildings--Locomotives.............................    21-13-24
    Shop Buildings--Freight Cars............................   *21-13-25
    Shop Buildings--Other Equipment.........................    21-13-26
    Locomotive Servicing Facilities.........................    21-13-27
    Coal Terminals..........................................   *21-13-29
    Ore Terminals...........................................   *21-13-30
    TOFC/COFC Terminals.....................................   *21-13-31
    Other Marine Terminals..................................   *21-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *21-13-33
    Facilities for Other Specialized Services Operations....   *21-13-35
    Roadway Machines........................................    21-13-36
    Snow Removal............................................    21-13-38
    Dismantling Retired Property............................    21-13-39
    Road Property and Equipment Damaged.....................    21-13-48
Other--Other................................................    21-13-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Equipment--Locomotives--
21-21-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of locomotives, 
whether owned by the carrier or by others. This account includes charges 
to expense for all materials, small tools, supplies, fuels, lubricants, 
purchased standard stationery and forms, freight-in on materials and 
supplies, and similar items. Its components shall be distributed to the 
following functions in accordance with Instruction 1-18:

[[Page 79]]



Administration--General.....................................    21-21-01
Repair and Maintenance:
    Locomotives.............................................    21-21-41
    Road Property and Equipment Damaged.....................    21-21-48
Other--Other................................................    21-21-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Equipment--Freight Cars--
21-22-XX*

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of freight-
cars, whether owned by the carrier or by others. This account includes 
charges to expense for all materials, small tools, supplies, fuels, 
lubricants, purchased standard stationery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with Instruction 1-
18:

Administration--General.....................................    21-22-01
Repair and Maintenance:
    Dismantling Retired Property............................    21-22-39
    Freight Cars............................................    21-22-42
    Road Property and Equipment Damaged.....................    21-22-48
Other--Other................................................    21-22-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Equipment--Other 
Equipment--21-23-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of equipment by 
others. This account includes charges to expense for all materials, 
small tools, supplies, fuels, lubricants, purchased standard stationery 
and forms, freight-in on materials and supplies, and similar items. Its 
components shall be distributed to the following functions in accordance 
with Instruction 1-18:

Administration--General.....................................    21-23-01
Repair and Maintenance:
    Dismantling Retired Property............................    21-23-39
    Trucks, Trailers, Containers in Revenue Service.........   *21-23-43
    Floating Equipment--Revenue Service.....................   *21-23-44
    Passenger and Other Revenue Equipment...................    21-23-45
    Computer Systems and Word Processing Equipment..........    21-23-46
    Work and Other Non-Revenue Equipment....................    21-23-47
    Road Property and Equipment Damaged.....................    21-23-48
    Shop Machinery--Locomotives.............................    21-23-49
    Shop Machinery--Freight Cars............................   *21-23-50
    Shop Machinery--Other Equipment.........................    21-23-51
Other--Other................................................    21-23-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Transportation--Train--
21-31-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
association with the dispatching and operation of freight trains over 
the charges to expense for all materials, small tools, supplies, fuels, 
lubricants, purchased standard stationery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with Instruction 1-
18:

Administration--General.....................................    21-31-01
Operations:
    Engine Crews............................................    21-31-56
    Train Crews.............................................    21-31-57
    Dispatching Trains......................................    21-31-58
    Operating Switches, Signals, Interlockers, Retarders,       21-31-59
     Humps..................................................
    Operating Drawbridges...................................    21-31-60
    Highway Crossing Protection.............................    21-31-61
    Train Inspection and Lubrication........................    21-31-62
    Clearing Wrecks.........................................    21-31-63
    Locomotive Fuels........................................    21-31-67
    Electric Power Purchased/Produced for Motive Power......    21-31-68
    Servicing Locomotives...................................    21-31-69
Other--Other................................................    21-31-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Transportation--Yard--21-
32-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
and in terminal switching and transfer service. This account includes 
charges to expense for all materials, small tools, supplies, fuels, 
lubricants, purchased standard stationery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with Instruction 1-
18:

Administration--General.....................................    21-32-01
Operations:
    Operating Switches, Signals, Interlockers, Retarders,       21-32-59
     Humps..................................................
    Clearing Wrecks.........................................    21-32-63
    Switch Crews............................................    21-32-64
    Controlling Operations..................................    21-32-65

[[Page 80]]

 
    Yard and Terminal Clerical..............................    21-32-66
    Locomotive Fuel.........................................    21-32-67
    Electric Power Purchased/Produced for Motive Power......    21-32-68
    Servicing Locomotives...................................    21-32-69
Other--Other................................................    21-32-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Transportation--Train and 
Yard Common--21-33-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed on 
behalf of both train and yard operations. This account includes charges 
to expense for all materials, small tools, supplies, fuels, lubricants, 
supplies, and similar items. Its components shall be distributed to the 
following functions in accordance with Instruction 1-18:

Operations:
    Cleaning Car Interiors.................  21-33-70
    Adjusting, Transferring Loads..........  *21-33-71
    Car Loading Devices and Grain Doors....  *21-33-72
 


Materials, Tools, Supplies, Fuels, Lubricants--Transportation--
Specialized Services--21-34-XX*

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
operating services which are specialized in nature and in cost 
characteristics. The specialized services designated by the Board appear 
within the explanation of specialized services. This account shall be 
subdivided by the following functions:

Administration--General.....................................    21-34-01
Operations:
    Pick Up and Delivery, Marine Line Haul, and Rail            21-34-73
     Substitute Service.....................................
    Loading, Unloading, and Local Marine....................    21-34-74
    Protective Services.....................................    21-34-75
Other--Other................................................    21-34-99
 

Materials, Tools, Supplies, Fuels, Lubricants--Transportation--
Administrative Support--21-35-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
association with providing direct administrative support for the 
Transportation Activity. For further clarification refer to the 
explanation of the Administrative Support Operations Subactivity. This 
account shall be subdivided by the following functions:

Administration--General.....................................    21-35-01
Operations:
    Clerks, Accounting Employees............................    21-35-76
    Communication Systems Operations........................    21-35-77
    Loss and Damage Claims Processing.......................    21-35-78
Other--Other................................................    21-35-99
 

Materials, Tools, Supplies, Fuels, Lubricants--General and 
Administrative--21-61-XX
    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
providing overall administration or other general support for carrier 
operations. For further clarification refer to the definition of the 
General and Administrative Activity. This account shall be subdivided by 
the following functions:

Administration--General.....................................    21-61-01
General:
    Accounting, Auditing, Finance...........................    21-61-86
    Management Services and Data and Word Processing........    21-61-87
    Marketing...............................................    21-61-88
    Sales...................................................    21-61-89
    Industrial Development..................................   *21-61-90
    Legal and Secretarial...................................    21-61-92
    Public Relations and Advertising........................    21-61-93
    Research and Development................................    21-61-94
    Other--Other............................................    21-61-99
 

                           Purchased Services

Control--30-00-00
    This account may be used as a control account for all accounts in 
the Purchased services series:

Lease Rentals--Dr.
Lease Rentals--Cr.
Joint Facility Rent--Dr.
Joint Facility Rent--Cr.
Other Rents--Dr.
Other Rents--Cr.
Joint Facility--Dr.
Joint Facility--Cr.
Repairs Billed by Others--Dr.
Repairs Billed to Others--Cr.
Other Purchased Services
Lease Rentals--Debit--Control--31-00-00
    This account series includes the rentals of road property and 
equipment with terms of 30 days or more. This account excludes joint 
facility and joint trackage rents, insurance and maintenance elements of 
lease payments, and all elements of capital leases as defined in FASB 
Statement No. 13. Capitalized

[[Page 81]]

leases shall be included in the applicable property account for the 
particular asset leased [See Instruction 2-11b]. The components of this 
natural expense will be distributed to the following accounts in 
accordance with Instruction 1-18:

Lease Rentals--Dr.--Way and Structures--Running.............    31-11-00
Lease Rentals--Dr.--Way and Structures--Switching...........    31-12-00
Lease Rentals--Dr.--Way and Structures--Other...............    31-13-00
Lease Rentals--Dr.--Equipment--Locomotives..................    31-21-00
Lease Rentals--Dr.--Equipment--Freight Cars.................   *31-22-00
Lease Rentals--Dr.--Equipment--Other Equipment..............    31-23-00
 

Lease Rentals--Credit--Control--32-00-00
    This account group includes the rentals of owned property and 
equipment or subleases of leased road property and equipment with terms 
of from 30 days to one year. Longer term leases are indicative of a 
noncarrier operation and all revenues and expenses related to such 
property and equipment should be classified accordingly and excluded 
from railroad operations. This account excludes joint facilities and 
joint trackage, capital leases, and portions of lease receipts covering 
maintenance and insurance. The components of this natural expense 
account will be distributed to the following accounts in accordance with 
Instruction 1-18:

Lease Rentals--Cr.--Way and Structures--Running.............    32-11-00
Lease Rentals--Cr.--Way and Structures--Switching...........    32-12-00
Lease Rentals--Cr.--Way and Structures--Other...............    32-13-00
Lease Rentals--Cr.--Equipment--Locomotives..................    32-21-00
Lease Rentals--Cr.--Equipment--Freight Cars.................   *32-22-00
 

Joint Facility Rents--Debits--Control--33-00-00
    This account group includes amounts payable accrued as rent for 
equipment, tracks, yards, terminals, and other facilities owned or 
controlled by other carriers, companies, or individuals, and in the 
joint use of which the accounting company participates. Amounts paid or 
payable by the accounting company in reimbursement for taxes on property 
jointly used shall be charged to this account.
    The cost of maintenance, operation, or administration of joint 
facilities, chargeable to the accounting company, shall be charged to 
the various joint facility accounts (37-XX-00). When the compensation 
for the use of joint facilities is a fixed amount or is based upon a 
charge per passenger, ton, car, or other unit, it shall be fairly 
apportioned between this account and Joint Facility--Dr. (37-XX-00). 
This apportionment shall be made by the operating company and shall be 
followed by the accounting company.
    The components of this natural expense consist of the following 
accounts:

Joint Facility Rents--Dr.--Way and Structures--Running......    33-11-00
Joint Facility Rents--Dr.--Way and Structures--Switching....    33-12-00
Joint Facility Rents--Dr.--Way and Structures--Other........    33-13-00
Joint Facility Rents--Dr. Equipment--Locomotives............   *33-21-00
Joint Facility Rents--Dr. Equipment--Freight Cars...........   *33-22-00
Joint Facility Rents--Dr. Equipment--Other Equipment........    33-23-00
 

Joint Facility Rents--Credit--Control--34-00-00
    This account series includes amounts receivable accrued for rent of 
equipment, tracks, yards, terminals and other facilities owned or 
controlled by the accounting company and used jointly with other 
companies or individuals. Amounts receivable from other companies in 
reimbursement for taxes on property jointly used shall be credited to 
this account.
    The portion of the cost of maintenance, operation, or administration 
of joint facilities recoverable from others shall be credited to the 
various joint facility accounts (38-XX-00). When the compensation for 
the use of joint facilities is a fixed amount or is based upon a charge 
per passenger, ton, car, or other unit, it shall be fairly apportioned 
by the creditor between this account and Joint Facility--Cr. (38-XX-00).
    The components of this account series shall be distributed to the 
following accounts:

Joint Facility Rents--Cr.--Way and Structures--Running......    34-11-00

[[Page 82]]

 
Joint Facility Rents--Cr.--Way and Structures--Switching....    34-12-00
Joint Facility Rents--Cr.--Way and Structures--Other........    34-13-00
Joint Facility Rents--Cr.--Equipment--Locomotives...........   *34-21-00
Joint Facility Rents--Cr.--Equipment--Freight Cars..........   *34-22-00
Joint Facility Rents--Cr.--Equipment--Other Equipment.......    34-23-00
 

Other Rents--Debit--Control--35-00-00
    This account group includes the rents with terms of less than 30 
days which are not renewed. This account includes all time and mileage 
payments for interchange locomotive, freight car, and other revenue 
equipment hire. The components of this account will be distributed to 
the following accounts in accordance with Instruction 1-18:

Other Rents--Dr.--Way and Structures--Running...............    35-11-00
Other Rents--Dr.--Way and Structures--Switching.............    35-12-00
Other Rents--Dr.--Way and Structures--Other.................    35-13-00
Other Rents--Dr.--Equipment--Locomotives....................    35-21-00
Other Rents--Dr.--Equipment--Freight Cars...................   *35-22-00
Other Rents--Dr.--Equipment--Other Equipment................    35-23-00
 

Other Rents--Credit--Control--36-00-00
    This account includes rents with terms of less than 30 days which 
are not renewed. This account includes all time and mileage receipts for 
interchanged locomotive, freight car, and other revenue equipment hire. 
The components of this account will be distributed to the following 
accounts in accordance with Instruction 1-18:

Other Rents--Cr.--Way and Structures--Running...............    36-11-00
Other Rents--Cr.--Way and Structures--Switching.............    36-12-00
Other Rents--Cr.--Way and Structures--Other.................    36-13-00
Other Rents--Cr.--Equipment--Locomotives....................    36-21-00
Other Rents--Cr.--Equipment--Freight Cars...................   *36-22-00
Other Rents--Cr.--Equipment--Other Equipment................    36-23-00
 

Joint Facility--Debit--Control--37-00-00
    This account includes joint trackage and joint facility costs, 
exclusive of rents, payable by the railroad to others. The components of 
this account will be distributed to the following accounts in accordance 
with Instruction 1-18:

Joint Facility--Dr.--Way and Structures--Running............    37-11-00
Joint Facility--Dr.--Way and Structures--Switching..........    37-12-00
Joint Facility--Dr.--Way and Structures--Other..............    37-13-00
Joint Facility--Dr.--Equipment--Locomotives.................    37-21-00
Joint Facility--Dr.--Equipment--Freight Cars................   *37-22-00
Joint Facility--Dr.--Equipment--Other Equipment.............    37-23-00
Joint Facility--Dr.--Transportation--Train..................    37-31-00
Joint Facility--Dr.--Transportation--Yard...................    37-32-00
Joint Facility--Dr.--Transportation--Specialized Services...   *37-34-00
Joint Facility--Dr.--Transportation--Administrative Support.    37-35-00
Joint Facility--Dr.--General and Administrative.............    37-61-00
 

Joint Facility--Credit--Control--38-00-00
    This account group includes joint trackage and joint facility costs, 
exclusive of rents, payable by others to the railroad. The components of 
this account will be distributed to the following accounts in accordance 
with Instruction 1-18:

Joint Facility--Cr.--Way and Structures--Running............    38-11-00
Joint Facility--Cr.--Way and Structures--Switching..........    38-12-00
Joint Facility--Cr.--Way and Structures--Other..............    38-13-00
Joint Facility--Cr.--Equipment--Locomotives.................    38-21-00
Joint Facility--Cr.--Equipment--Freight Cars................   *38-22-00
Joint Facility--Cr.--Equipment--Other Equipment.............    38-23-00
Joint Facility--Cr.--Transportation--Train..................    38-31-00
Joint Facility--Cr.--Transportation--Yard...................    38-32-00
Joint Facility--Cr.--Transportation--Specialized Services...   *38-34-00
Joint Facility--Cr.--Transportation--Administrative Support.    38-35-00
Joint Facility--Cr.--General and Administrative.............    38-61-00
 


[[Page 83]]

Repairs Billed by Others--Debit--Control--39-00-00
    This account group includes amounts payable by the railroad to 
others for repair and maintenance of the reporting railroad's property 
and equipment. The components of this account shall be distributed to 
the following accounts in accordance with Instruction 1-18:
Repairs Billed by Others--Dr.--Way and Structures--Running--39-11-XX
    This account includes amounts payable by the railroad to others for 
repair and maintenance of the reporting railroad's property associated 
with the carrier's roadway and track on the line of road and outside of 
classification yards. This account shall be subdivided by the following 
functions:

Repair and Maintenance:
    Roadway.................................................    39-11-10
    Tunnels and Subways.....................................    39-11-11
    Bridges and Culverts....................................    39-11-12
    Ties....................................................    39-11-13
    Rails and Other Track Material..........................    39-11-14
    Ballast.................................................    39-11-16
    Signals and Interlockers................................    39-11-19
    Highway Grade Crossings.................................    39-11-22
    Road Property and Equipment Damaged.....................    39-11-48
 

Repairs Billed by Others--Dr.--Way and Structures--Switching--39-12-XX
    This account includes amounts payable by the railroad to others for 
repair and maintenance of the reporting railroad's property associated 
with the carrier's roadway and track within classification yards and 
stations. This account shall be subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    39-12-10
    Tunnels and Subways.....................................    39-12-11
    Bridges and Culverts....................................    39-12-12
    Ties....................................................    39-12-13
    Rails and Other Track Material..........................    39-12-14
    Ballast.................................................    39-12-16
    Signals and Interlockers................................    39-12-19
    Highway Grade Crossings.................................    39-12-22
    Road Property and Equipment Damaged.....................    39-12-48
 

Repairs Billed by Others--Dr.--Way and Structures--Other--39-13-XX
    This account includes amounts payable by the railroad to others for 
repair and maintenance of the carrier's structures other than roadway 
and track. This account shall be subdivided by the following functions:

Repair and Maintenance:
    Communication Systems...................................    39-13-20
    Power Systems...........................................    39-13-21
    Station and Office Buildings............................    39-13-23
    Shop Buildings--Locomotives.............................    39-13-24
    Shop Buildings--Freight Cars............................   *39-13-25
    Shop Buildings--Other Equipment.........................    39-13-26
    Locomotive Servicing Facilities.........................    39-13-27
    Miscellaneous Buildings and Structures..................    39-13-28
    Coal Terminals..........................................   *39-13-29
    Ore Terminals...........................................   *39-13-30
    TOFC/COFC Terminals.....................................   *39-13-31
    Other Marine Terminals..................................   *39-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *39-13-33
    Facilities for Other Specialized Services Operations....   *39-13-35
    Roadway Machines........................................    39-13-36
    Snow Removal............................................    39-13-38
    Road Property and Equipment Damaged.....................    39-13-48
 

Repairs Billed by Others--Dr.--Equipment--Locomotives--39-21-XX
    This account includes amounts payable by the railroad to others for 
repair and maintenance under the Locomotive subactivity. This account 
shall be subdivided by the following functions:

Repair and Maintenance:
    Locomotives.............................................    39-21-41
    Road Property and Equipment Damaged.....................    39-21-48
 

Repairs Billed by Others--Dr.--Equipment--Freight Cars--39-22-XX*
    This account includes amounts payable by the railroad to others for 
repair and maintenance under the Freight Car subactivity. This account 
shall be subdivided by the following functions:

Repair and Maintenance:
    Freight Cars............................................    39-22-42
    Road Property and Equipment Damaged.....................    39-22-48
 

Repairs Billed by Others--Dr.--Equipment Other Equipment--39-23-XX
    This account includes amounts payable by the railroad to others for 
the repair and maintenance of equipment not pertaining to the Locomotive 
or Freight Car subactivity. This account shall be subdivided by the 
following functions:

Repair and Maintenance:
    Trucks, Trailers, and Containers in Revenue Service.....   *39-23-43
    Floating Equipment--Revenue Service.....................   *39-23-44

[[Page 84]]

 
    Passenger and Other Revenue Equipment...................    39-23-45
    Computer Systems and Word Processing Equipment..........    39-23-46
    Work and Other Non-Revenue Equipment....................    39-23-47
    Road Property and Equipment Damaged.....................    39-23-48
    Shop Machinery--Locomotives.............................    39-23-49
    Shop Machinery--Freight Cars............................   *39-23-50
    Shop Machinery--Other Equipment.........................    39-23-51
 

Repairs Billed to Others--Cr.--Control 40-00-00
    This account series includes amounts payable by others to the 
railroad for repair and maintenance of others' road property and 
equipment. The components of this account shall be distributed to the 
following accounts in accordance with Instruction 1-18:
Repairs Billed to Others--Cr.--Way and Structures--Running--40-11-XX
    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' roadway and track on the line 
of road and outside of classification yards. This account shall be 
subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    40-11-10
    Tunnels and Subways.....................................    40-11-11
    Bridges and Culverts....................................    40-11-12
    Ties....................................................    40-11-13
    Rails and Other Track Material..........................    40-11-14
    Ballast.................................................    40-11-16
    Signals and Interlockers................................    40-11-19
    Highway Grade Crossings.................................    40-11-22
    Road Property and Equipment Damaged.....................    40-11-48
 

Repairs Billed to Others--Cr.--Way and Structures Switching--40-12-XX
    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' roadway and track within 
classification yards and stations. This account shall be subdivided by 
the following functions:

Repair and Maintenance:
    Roadway.................................................    40-12-10
    Tunnels and Subways.....................................    40-12-11
    Bridges and Culverts....................................    40-12-12
    Ties....................................................    40-12-13
    Rails and Other Track Material..........................    40-12-14
    Ballast.................................................    40-12-16
    Signals and Interlockers................................    40-12-19
    Highway Grade Crossings.................................    40-12-22
    Road Property and Equipment Damaged.....................    40-12-48
 

Repairs Billed to Others--Cr.--Way and Structures--Other--40-13-XX
    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' structures other than roadway 
and track. This account shall be subdivided by the following functions:

Repair and Maintenance:
    Communication Systems...................................    40-13-20
    Power Systems...........................................    40-13-21
    Station and Office Buildings............................    40-13-23
    Shop Buildings Locomotives..............................    40-13-24
    Shop Buildings--Freight Cars............................   *40-13-25
    Shop Buildings--Other Equipment.........................    40-13-26
    Locomotive Servicing Facilities.........................    40-13-27
    Miscellaneous Buildings and Structures..................    40-13-28
    Coal Terminals..........................................   *40-13-29
    Ore Terminals...........................................   *40-13-30
    TOFC/COFC Terminals.....................................   *40-13-31
    Other Marine Terminals..................................   *40-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *40-13-33
    Facilities for Other Specialized Services Operations....   *40-13-35
    Roadway Machines........................................    40-13-36
    Snow Removal............................................    40-13-38
    Road Property and Equipment Damaged.....................    40-13-48
 

Repairs Billed to Others--Cr.--Equipment Locomotives--40-21-XX
    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' locomotives. This account 
shall be subdivided by the following functions:

Repair and Maintenance:
    Locomotives.............................................    40-21-41
    Road Property and Equipment Damaged.....................    40-21-48
 

Repairs Billed to Others--Cr.--Equipment--Freight Cars--40-22-XX*
    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' freight cars. This account 
shall be subdivided by the following functions:

Repair and Maintenance:
    Freight Cars............................................    40-22-42
    Road Property and Equipment Damaged.....................    40-22-48
 

Repairs Billed to Others--Cr.--Equipment--Other Equipment--40-23-XX
    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' other equipment. Each account 
shall be subdivided by the following functions:

[[Page 85]]



Repair and Maintenance:
    Trucks, Trailers, and Containers in Revenue Service.....   *40-23-43
    Floating Equipment--Revenue Service.....................   *40-23-44
    Passenger and Other Revenue Equipment...................    40-23-45
    Computer Systems and Word Processing Equipment..........    40-23-46
    Road Property and Equipment Damaged.....................    40-23-48
    Shop Machinery--Locomotives.............................    40-23-49
    Shop Machinery--Freight Cars............................   *40-23-50
    Shop Machinery--Other Equipment.........................    40-23-51
 

Other Purchased Services--Control--41-00-00
    This account group includes amounts charged or credited to operating 
expenses for purchased advertising; purchased printing; outside 
professional services such as legal, accounting, audit, engineering, and 
consulting; payments for detour of trains; utilities, telephone, 
postage, subscriptions, communications, purchased electric power for 
train and locomotive propulsion; and other services purchased. The 
components of this account group shall be distributed to the following 
accounts in accordance with Instruction 1-18:
Other Purchased Services--Way and Structures--Running--41-11-XX
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    41-11-10
    Tunnels and Subways.....................................    41-11-11
    Bridges and Culverts....................................    41-11-12
    Ties....................................................    41-11-13
    Rails and Other Track Material..........................    41-11-14
    Ballast.................................................    41-11-16
    Signals and Interlockers................................    41-11-19
    Highway Grade Crossings.................................    41-11-22
    Dismantling Retired Property............................    41-11-39
    Road Property and Equipment Damaged.....................    41-11-48
Other--Other................................................    41-11-99
 

Other Purchased Services--Way and Structures--Switching--41-12-XX
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    41-12-10
    Tunnels and Subways.....................................    41-12-11
    Bridges and Culverts....................................    41-12-12
    Ties....................................................    41-12-13
    Rails and Other Track Material..........................    41-12-14
    Ballast.................................................    41-12-16
    Signals and Interlockers................................    41-12-19
    Highway Grade Crossings.................................    41-12-22
    Dismantling Retired Property............................    41-12-39
    Road Property and Equipment Damaged.....................    41-12-48
Other--Other................................................    41-12-99
 

Other Purchased Services--Way and Structures--Other--41-13-XX
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration:
    Track...................................................    41-13-02
    Bridges and Buildings...................................    41-13-03
    Signals.................................................    41-13-04
    Communications..........................................    41-13-05
    Other...................................................    41-13-06
Repair and Maintenance:
    Communication Systems...................................    41-13-20
    Power Systems...........................................    41-13-21
    Station and Office Buildings............................    41-13-23
    Shop Buildings--Locomotives.............................    41-13-24
    Shop Buildings--Freight Cars............................   *41-13-25
    Shop Buildings--Other Equipment.........................    41-13-26
    Locomotive Servicing Facilities.........................    41-13-27
    Miscellaneous Buildings and Structures..................    41-13-28
    Coal Terminals..........................................   *41-13-29
    Ore Terminals...........................................   *41-13-30
    TOFC/COFC Terminals.....................................   *41-13-31
    Other Marine Terminals..................................   *41-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *41-13-33
    Facilities for Other Specialized Services Operations....   *41-13-35
    Roadway Machines........................................    41-13-36
    Snow Removal............................................    41-13-38
    Dismantling Retired Property............................    41-13-39
    Road Property and Equipment Damaged.....................    41-13-48
Other--Other................................................    41-13-99
 

Other Purchased Services--Equipment--Locomotives--41-21-XX
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administrative--General.....................................    41-21-01
Repair and Maintenance:
    Dismantling Retired Property............................    41-21-39

[[Page 86]]

 
    Locomotives.............................................    41-21-41
    Road Property and Equipment Damaged.....................    41-21-48
Other--Other................................................    41-21-99
 

Other Purchased Services--Equipment--Freight Cars--41-22-XX*
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administrative--General.....................................    41-22-01
Repair and Maintenance:
    Dismantling Retired Property............................    41-22-39
    Freight Cars............................................    41-22-42
    Road Property and Equipment Damaged.....................    41-22-48
Other--Other................................................    41-22-99
 

Other Purchased Services--Equipment--Other Equipment--41-23-XX
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administrative--General.....................................    41-23-01
Repair and Maintenance:
    Dismantling Retired Property............................    41-23-39
    Trucks, Trailers, Containers in Revenue Service.........    41-23-43
    Floating Equipment--Revenue Service.....................   *41-23-44
    Passenger and Other Revenue Equipment...................    41-23-45
    Computer Systems and Word Processing Equipment..........    41-23-46
    Work and Other Non-Revenue Equipment....................    41-23-47
    Road Property and Equipment Damaged.....................    41-23-48
    Shop Machinery--Locomotives.............................    41-23-49
    Shop Machinery--Freight Cars............................   *41-23-50
    Shop Machinery--Other Equipment.........................    41-23-51
Other--Other................................................    41-23-99
 

Other Purchased Services--Transportation--Train--41-31-XX
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--General.....................................    41-31-01
Operations:
    Engine Crews............................................    41-31-56
    Train Crews.............................................    41-31-57
    Dispatching Trains......................................    41-31-58
    Operating Switches, Signals, Interlockers, Retarders,       41-31-59
     Humps..................................................
    Operating Drawbridges...................................    41-31-60
    Highway Crossing Protection.............................    41-31-61
    Train Inspection and Lubrication........................    41-31-62
    Clearing Wrecks.........................................    41-31-63
    Locomotive Fuel.........................................    41-31-67
    Electric Power Purchased/Produced for Motive Power......    41-31-68
    Servicing Locomotives...................................    41-31-69
Other--Other................................................    41-31-99
 

Other Purchased Services--Transportation--Yard--41-32-XX
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--General.....................................    41-32-01
Operations:
    Operating Switches, Signals, Interlockers, Retarders,       41-32-59
     Humps..................................................
    Clearing Wrecks.........................................    41-32-63
    Switch Crews............................................    41-32-64
    Controlling Operations..................................    41-32-65
    Yard and Terminal Clerical..............................    41-32-66
    Locomotive Fuel.........................................    41-32-67
    Electric Power Purchased/Produced for Motive Power......    41-32-68
    Servicing Locomotives...................................    41-32-69
Other--Other................................................    41-32-99
 

Other Purchased Services--Transportation--Train and Yard Common--41-33-
XX
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Operations:
    Cleaning Car Interiors..................................    41-33-70
    Adjusting, Transferring Loads...........................    41-33-71
    Car Loading Devices and Grain Doors.....................    41-33-72
 

Other Purchased Services--Transportation--Specialized Services--41-34-XX
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--General.....................................    41-34-73
Operations:
    Pick Up and Delivery, Marine Line Haul, and Rail            41-34-73
     Substitute Service.....................................
    Loading, Unloading, and Local Marine....................    41-34-74
    Protective Services.....................................    41-34-75
Other--Other................................................    41-34-99
 


[[Page 87]]

Other Purchased Services--Transportation--Administrative Support--41-35-
XX
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--General.....................................    41-35-01
Operations:
    Clerks, Accounting Employees............................    41-35-76
    Communication Systems Operations........................    41-35-77
    Loss and Damage Claims Processing.......................    41-35-78
Other--Other................................................    41-35-99
 

Other Purchased Services--General and Administrative--41-61-XX
    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--General.....................................    41-61-01
General:
    Accounting, Auditing, Finance...........................    41-61-86
    Management Services and Data and Word Processing........    41-61-87
    Marketing...............................................    41-61-88
    Sales...................................................    41-61-89
    Industrial Development..................................   *41-61-90
    Personnel and Labor Relations...........................    41-61-91
    Legal and Secretarial...................................    41-61-92
    Public Relations and Advertising........................    41-61-93
    Research and Development................................    41-61-94
Other--Other................................................    41-61-99
 



Claims and Insurance--Table of Contents



Control--50-00-00
    This account may be used as a control account for all accounts in 
the Claims and Insurance series: Loss and Damage Claims, Other 
Casualties, Insurance.
Loss and Damage Claims--Control--51-00-00
    This account series includes amounts payable to compensate for the 
loss or damage of freight or other goods carried in revenue service. 
Loss and damage claims should not be allocated. When specific 
identification of loss and damage claims is possible, the related 
expenses shall be directly assigned to the Train, Yard, or Specialized 
service Subactivity. If a solely related determination cannot be made 
the loss and damage claim shall be charged to the Train and Yard 
Subactivity. This account series excludes amounts payable to employees 
or other parties for injuries sustained or loss of life; for damage to 
real property of others or personal property not carried in revenue 
services; all payments for other damages of any kind; and related 
insurance premiums. These costs are appropriately charged to the 
following accounts:

Loss and Damage Claims--Transportation--Train...............    51-31-00
Loss and Damage Claims--Transportation--Yard................    51-32-00
Loss and Damage Claims--Transportation--Train and Yard          51-33-00
 Common.....................................................
Loss and Damage Claims--Transportation--Specialized Services   *51-34-00
 

Other Casualties--Control--52-00-00
    This account includes amounts payable to employees or other parties 
for injuries sustained or loss of life in connection with the 
construction, maintenance, operations, and administration of railroad 
property and equipment; for damage to real property, property of others 
or personal property not carried in revenue service; all payments for 
other damages of any kind. This account excludes freight and other goods 
carried in a revenue service, and insurance premiums related to the 
casualties chargeable to this account.
    Note: The costs of clearing wrecks and repairing casualty-caused 
damage to the railroad's property and equipment are properly classified 
under other natural expense accounts as appropriate and further 
classified by relevant activities and functions. These costs are 
appropriately charged to the following accounts:

Other Casualties--Way and Structures--Running...............    52-11-00
Other Casualties--Way and Structures--Switching.............    52-12-00
Other Casualties--Way and Structures--Other.................    52-13-00
Other Casualties--Equipment--Locomotives....................    52-21-00
Other Casualties--Equipment--Freight Cars...................   *52-22-00
Other Casualties--Equipment--Other Equipment................    52-34-00
Other Casualties--Transportation--Train.....................    52-31-00
Other Casualties--Transportation--Yard......................    52-32-00

[[Page 88]]

 
Other Casualties--Transportation--Specialized Services......   *52-34-00
Other Casualties--Transportation--Administrative Support....    52-35-00
Other Casualties--General and Administrative................    52-61-00
 

Insurance--Control--53-00-00
    This account series include premiums for insurance to cover property 
and equipment loss and damage, liability, business interruption, and the 
like. These costs are appropriately charged to the following accounts:

Insurance--Way and Structures--Running......................    53-11-00
Insurance--Way and Structures--Switching....................    53-12-00
Insurance--Way and Structures--Other........................    53-13-00
Insurance--Equipment--Locomotives...........................    53-21-00
Insurance--Equipment--Freight Cars..........................   *53-22-00
Insurance--Equipment--Other Equipment.......................    53-23-00
Insurance--Transportation--Train............................    53-31-00
Insurance--Transportation--Yard.............................    53-32-00
Insurance--Transportation--Specialized Services.............   *53-34-00
Insurance--Transportation--Administrative Support...........    53-35-00
Insurance--General and Administrative.......................    53-61-00
 



General--Table of Contents



Control--60-00-00
    This account may be used as a control account for all accounts in 
the General series: Other Expenses, Depreciation, Uncollectible 
Accounts, Property Taxes, Other Taxes.
Other Expenses--Control--61-00-00
    This account series includes amounts charged to operating expenses 
for items not otherwise provided for in the other natural expense 
accounts, including travel and other expenses of employees, road 
property and equipment retirement losses, and other items of a general 
nature.
Other Expenses--Way and Structures--Running--61-11-XX
    Each account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement losses, and other items of a general nature associated with 
the carrier's roadway and track on the line of road and outside of 
classification yards. Each account shall be subdivided by the following 
functions:

Repair Maintenance:
    Roadway.................................................    61-11-10
    Tunnels and Subways.....................................    61-11-11
    Bridges and Culverts....................................    61-11-12
    Ties....................................................    61-11-13
    Rails and Other Track Material..........................    61-11-14
    Ballast.................................................    61-11-16
    Signals and Interlockers................................    61-11-19
    Highway Grade Crossings.................................    61-11-22
    Dismantling Retired Property............................    61-11-39
    Road Property and Equipment Damaged.....................    61-11-48
Other--Other................................................    61-11-99
 

Other Expenses--Way and Structures--Switching--61-12-XX
    Each account includes amount charged to operating expenses for items 
not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement losses, and other items of a general nature associated with 
the carrier's roadway and track within classification yards and 
stations. Each account shall be subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    61-12-10
    Tunnels and Subways.....................................    61-12-11
    Bridges and Culverts....................................    61-12-12
    Ties....................................................    61-12-13
    Rails and Other Track Material..........................    61-12-14
    Ballast.................................................    61-12-16
    Signals and Interlockers................................    61-12-19
    Highway Grade Crossings.................................    61-12-22
    Dismantling Retired Property............................    61-12-39
    Road Property and Equipment Damaged.....................    61-12-48
Other--Other................................................    61-12-99
 

Other Expenses--Way and Structures--Other--61-13-XX
    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement losses, and other items of a general nature associated with 
the carrier's structures other than roadway and track. This account 
shall be subdivided by the following functions:

Administration:
    Track...................................................    61-13-02
    Bridges and Buildings...................................    61-13-03
    Signals.................................................    61-13-04
    Communications..........................................    61-13-05

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    Other...................................................    61-13-06
Repair and Maintenance:
    Communication Systems...................................    61-13-20
    Power Systems...........................................    61-13-21
    Station and Office Buildings............................    61-13-23
    Shop Buildings--Locomotives.............................    61-13-24
    Shop Buildings--Freight Cars............................   *61-13-25
    Shop Buildings--Other Equipment.........................    61-13-26
    Locomotive Servicing Facilities.........................    61-13-27
    Miscellaneous Buildings and Structures..................    61-13-28
    Coal Terminals..........................................   *61-13-29
    Ore Terminals...........................................   *61-13-30
    TOFC/COFC Terminals.....................................   *61-13-31
    Other Marine Terminals..................................   *61-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *61-13-33
    Facilities for Other Specialized Services Operations....   *61-13-35
    Roadway Machines........................................    61-13-36
    Snow Removal............................................    61-13-38
    Dismantling Retired Property............................    61-13-39
    Road Property and Equipment Damaged.....................    61-13-48
Other--Other................................................    61-13-99
 

Other Expenses--Equipment--Locomotives 61-21-XX
    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees and equipment 
retirement losses, associated with the repair and maintenance of 
locomotives, whether owned by the carrier or by others. This account 
shall be subdivided by the following functions:

Administration--General.....................................    61-21-01
Repair and Maintenance:
    Dismantling Retired Property............................    61-21-39
    Locomotives.............................................    61-21-41
    Road Property and Equipment Damaged.....................    61-21-48
Other--Other................................................    61-21-99
 

Other Expenses--Equipment--Freight Cars--61-22-XX*
    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, equipment retirement 
losses, associated with the repair and maintenance of freight cars, 
whether owned by the carrier or by others. This account shall be 
subdivided by the following functions:

Administration--General.....................................    61-22-01
Repair and Maintenance:
    Dismantling Retired Property............................    61-22-39
    Freight Cars............................................    61-22-42
    Road Property and Equipment Damaged.....................    61-22-48
Other--Other................................................    61-22-99
 

Other Expenses--Equipment--Other Equipment--61-23-XX
    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, equipment retirement 
losses, associated with the repair and maintenance of equipment other 
than locomotives and freight cars, whether owned by the carrier or by 
others. This account shall be subdivided by the following functions:

Administration--General.....................................    61-23-01
Repair and Maintenance:
    Dismantling Retired Property............................    61-23-39
    Trucks, Trailers, Containers in Revenue Service.........   *61-23-43
    Floating Equipment--Revenue Service.....................   *61-23-44
    Passenger and Other Revenue Equipment...................    61-23-45
    Computer Systems and Word Processing Equipment..........    61-23-46
    Work and Other Non-Revenue Equipment....................    61-23-47
    Road Property and Equipment Damaged.....................    61-23-48
    Shop Machinery--Locomotives.............................    61-23-49
    Shop Machinery--Freight Cars............................   *61-23-50
    Shop Machinery--Other Equipment.........................    61-23-51
Other--Other................................................    61-23-99
 

Other Expenses--Transportation--Train--61-23-XX
    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, associated with the 
dispatching and operations of freight-trains over the roadway and 
outside of classification yards. This account shall be subdivided by the 
following functions:

Administration--General.....................................    61-31-01
Operations:
    Engine Crews............................................    61-31-56
    Train Crews.............................................    61-31-57
    Dispatching Trains......................................    61-31-58
    Operating Switches, Signals, Interlockers, Retarders,       61-31-59
     Humps..................................................
    Operating Drawbridges...................................    61-31-60
    Highway Crossing Protection.............................    61-31-61
    Train Inspection and Lubrication........................    61-31-62
    Clearing Wrecks.........................................    61-31-63
    Locomotive Fuel.........................................    61-31-67
    Electric Power Purchased/Produced for Motive Power......    61-31-68
    Servicing Locomotives...................................    61-31-69
Other--Other................................................    61-31-99
 


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Other Expenses--Transportation--Yard--61-32-XX
    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature associated with the movement of freight cars within 
classification yards and in terminal switching and transfer service. 
This account shall be subdivided by the following functions:

Administration--General.....................................    61-32-01
Operations:
    Operating Switches, Signals, Interlockers, Retarders,       61-32-59
     Humps..................................................
    Clearing Wrecks.........................................    61-32-63
    Switch Crews............................................    61-32-64
    Controlling Operations..................................    61-32-65
    Yard and Terminal Clerical..............................    61-32-66
    Locomotive Fuel.........................................    61-32-67
    Electric Power Purchased/Produced for Motive Power......    61-32-68
    Servicing Locomotives...................................    61-32-69
Other--Other................................................    61-32-99
 

Other Expenses--Transportation--Specialized Services--61-34-XX*
    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in operating services which are specialized in 
nature and in cost characteristics. The specialized services designated 
by the Board appear within the explanation of activities/ subactivities. 
This account shall be subdivided by the following functions:

Administration--General.....................................    61-34-01
Operations:
    Pick Up and Delivery, Marine Line Haul, and Rail            61-34-73
     Substitute Service.....................................
    Loading, Unloading, and Local Marine....................    61-34-74
    Protective Services.....................................    61-34-75
Other--Other................................................    61-34-99
 

Other Expenses--Transportation--Administrative Support--61-35-XX
    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in association with providing direct 
administrative support for the Transportation Activity. This account 
shall be subdivided by the following functions:

Administration--General.....................................    61-35-01
Operations:
    Clerks, Accounting Employees............................    61-35-76
    Communication Systems Operations........................    61-35-77
    Loss and Damage Claims Processing.......................    61-35-78
Other--Other................................................    61-35-99
 

Other Expenses--General and Administrative--61-61-XX
    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in providing overall administration or other 
support for carrier operations. This account shall be subdivided by the 
following functions:

Administration--General.....................................    61-61-01
General:
    Accounting, Auditing, Finance...........................    61-61-86
    Management Services and Data Processing.................    61-61-87
    Marketing...............................................    61-61-88
    Sales...................................................    61-61-89
    Industrial Development..................................   *61-61-90
    Personnel Labor Relations...............................    61-61-91
    Legal and Secretarial...................................    61-61-92
    Public Relations and Advertising........................    61-61-93
    Research and Development................................    61-61-94
Other--Other................................................    61-61-99
 

Depreciation--Control--62-00-00
    This account group includes the amounts charged to operating 
expenses for depreciation of owned road property and equipment, and the 
depreciation element of road property held under capital lease in 
accordance with FASB Statement No. 13. These costs are appropriately 
charged to the following accounts:

Depreciation--Way and Structures--Running...................    62-11-00
Depreciation--Way and Structures--Switching.................    62-12-00
Depreciation--Way and Structures--Other.....................    62-13-00
Depreciation--Equipment--Locomotives........................    62-21-00
Depreciation--Equipment--Freight Cars.......................   *62-22-00
Depreciation--Equipment--Other Equipment....................    62-23-00
 

Uncollectible Accounts--Control--63-00-00
    This account includes charges to operating expenses for the 
writedown of accounts and notes due to the railroad, whether classified 
as current or long-

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term. This account includes any credits to allowance accounts for 
collectibility and total writeoff of receivables. This account does not 
include writedowns of property, equipment, or investments (except 
accounts, notes, or other receivables held as investments). Proper 
adjustments of incorrect receivables are not to be charged to this 
account. Collections of amounts previously written off or down are to be 
credited to this account. The total of this account shall be charged to 
the following account:

Uncollectible Accounts--General and Administrative..........    63-61-00
 

Property Taxes--Control--64-00-00
    This account includes only taxes based on the value of real estate 
and personal property used in railroad operations. The total of this 
account shall be charged to the following account:

Property Taxes--General and Administrative..................    64-61-00
 

Other Taxes--Control--65-00-00
    This account includes taxes on gross receipts, franchise fees, 
excise taxes, and similar items. This account excludes property taxes 
and taxes chargeable as employee benefits. The total of this account 
shall be charged to the following account:

Other Taxes--General and Administrative.....................    65-61-00
 



OPERATING EXPENSE ACCOUNTS--Table of Contents



              Section 2--Activity/Subactivity Explanations

Way and Structures Activity--(XX-10-XX)
    (A) Way and Structures activity refers to repairing, maintaining, 
leasing, renting, depreciating, and retiring right-of-way and trackage, 
structures, buildings, and facilities. It includes all natural expense 
object subclassifications such as salaries and wages, fringe benefits, 
material and supplies, lease rentals, purchased services, casualties, 
depreciation and retirements, where such objects are in the performance 
or support of the above functions. Specifically included are all natural 
expense objects in the performance of the above described functions on 
property of the type included in property accounts 2 through 45, 
excluding 44, whether such property is owned or leased. It includes the 
costs of operating work trains in support of this activity.
    This activity excludes all expenses related to transportation and 
other equipment described in property accounts 44, 46 and 52 through 58, 
all of which should be charged to the Equipment activity. It also 
excludes expenses in performance or support of Transportation, General 
and Administrative activities, property used for noncarrier operations, 
non-operating property, and interest or other fixed charges.
Running Subactivity--(XX-11-XX)
    (1) Running subactivity of the Way and Structures activity refers to 
the functions of repairing, maintaining, leasing, renting, depreciating, 
and retiring right-of-way, trackage, signals and interlockers, and 
highway grade crossings for running tracks, passing tracks, crossovers, 
etc., including turn-outs from those tracks, passing clearance points. 
It includes all natural expense object subclassifications under the Way 
and Structures activity that are applicable to right-of-way and trackage 
as defined above. This subactivity specifically excludes expenses 
incurred in operating signals and interlockers and highway grade 
crossings, which are properly charged to the Transportation activity.
Switching Subactivity--(XX-12-XX)
    (2) Switching subactivity of the Way and Structures activity refers 
to the function of repairing, maintaining, leasing, renting, 
depreciating, and retiring right-of-way, trackage, signals and 
interlockers, and highway grade crossings for yards where separate 
switching services are maintained, including classification, house, 
team, industry, and other tracks switched by yard locomotives, and for 
station, team, industry, and other switching tracks for which no 
separate switching service is maintained. It includes all natural 
expense object subclassifications under the Way and Structures activity 
that are applicable to right-of-way and trackage as defined above.

[[Page 92]]

This subactivity specifically excludes expenses incurred in operating 
signals and interlockers, and highway grade crossings, which are 
properly charged to the Transportation activity.
Other Subactivity--(XX-13-XX)
    (3) Other subactivity of the Way and Structures activity refers to 
the function of repairing, maintaining, leasing, renting, depreciating, 
and retiring other roadway property structures, buildings, and 
facilities not provided for in the Running and Switching subactivities. 
It includes all natural expense object subclassifications under the Way 
and Structures activity that are applicable to the structures, 
buildings, and facilities as defined above. The specifically excludes 
expenses incurred in operating such structures, buildings, and 
facilities, which are properly charged to the Equipment, Transportation, 
and General and Administrative activities.
Equipment Activity--(XX-20-XX)
    (B) Equipment activity refers to repairing, maintaining, leasing, 
renting, depreciating, and retiring transportation and other operating 
equipment. It includes all natural expense object subclassifications 
such as salaries and wages, fringe benefits, material and supplies, 
lease rentals, purchased services, casualties, depreciation, and 
retirements. Specifically included are all natural expense objects in 
the performance of the above functions on property of the type included 
in property accounts 44, 46 and 52 through 58, whether such property is 
owned or leased. The costs of operating work trains in support of the 
Equipment activity are to be included herein.
    This activity excludes all expenses related to road property as 
described in property accounts 2 through 45, excluding account 44, all 
of which should be charged to the Way and Structures activity. It also 
excludes expenses in performance of, or support for Transportation, 
General and Administrative activities, property used for noncarrier 
operations, nonoperating property, and interest or other fixed charges.
Locomotives Subactivity--(XX-21-XX)
    (1) Locomotives subactivity of the Equipment activity refers to 
repairing, maintaining, leasing, renting, depreciating, and retiring 
locomotives. It includes all natural expense object subclassifications 
under the Equipment activity that are applicable to locomotives. This 
subactivity specifically excludes expenses incurred in operating 
locomotives, such as locomotive fuel and lubricants, train crew wages, 
operating supplies, servicing (as opposed to maintaining or repairing), 
and cleaning which are includable in the Transportation activity, except 
when locomotive use is clearly in support of other activities or 
subactivities. When locomotives are operated in support of repairing or 
maintaining locomotives, the operating costs shall be charged to this 
subactivity.
Freight Train Cars Subactivity--(XX-22-XX)
    (2) Freight Train Cars subactivity of the Equipment activity refers 
to repairing, maintaining, leasing, renting, depreciating, and retiring 
freight train cars. It includes all natural expense object 
subclassifications under the Equipment activity that are applicable to 
freight train cars. This subactivity pertains to all freight train cars 
described in property account 53, whether owned or leased, including 
freight cars used for hauling freight in company service and cabooses. 
It does not pertain to work equipment. This subactivity specifically 
excludes expenses incurred in running trains or operating freight cars, 
such as for locomotive fuel and lubricants, train crew wages, inspecting 
trains, operating supplies, servicing (as opposed to maintaining or 
repairing), and cleaning, which are includable in the Transportation 
activity, except where such costs are clearly in support of repairing or 
maintaining freight cars, other activities or subactivities. When 
locomotives or trains are operated in support of repairing or 
maintaining freight cars, the operating costs shall be charged to this 
subactivity.

[[Page 93]]

Other Equipment Subactivity--(XX-23-XX)
    (3) Other Equipment subactivity of the Equipment activity refers to 
repairing, maintaining, leasing, renting, depreciating, and retiring 
other equipment. It includes all natural expense object 
subclassifications under the Equipment activity which are applicable to 
other equipment. The subactivity pertains to all equipment described in 
property accounts 44, 46 and 54 through 58, whether such property is 
owned or leased. This subactivity specifically excludes expenses 
incurred in operating other equipment, such as for fuel and lubricants, 
crew wages, inspecting equipment, operating supplies, servicing (as 
opposed to maintaining or repairing), and cleaning, which are includible 
in the Transportation activity, except where such costs are clearly in 
support of other activities or subactivities. When locomotives, trains, 
or other equipment are operating in support of repairing or maintaining 
other equipment, the operating costs shall be charged to this 
subactivity.
Transportation Activity--(XX-30-XX)
    (C) Transportation activity refers to operating, servicing, 
inspecting, weighing, assembling, and switching trains; operating 
highway revenue services; operating facilities in connection with 
carrier transportation operations including coal and ore terminals, 
intermodal terminals, terminal grain elevators, and others; operating 
carfloat and carferry services and related facilities; operating 
communications systems which primarily support train operations; and 
joint facility transportation operations. It includes various 
administrative functions directly supporting transportation operations 
including those described in the Administrative Support Operations 
subactivity. Work train costs in support of the Way and Structures or 
the Equipment activities should be charged to those activities. However, 
shipments of company materials, handled in predominantly revenue freight 
trains, are appropriately included in this activity. This activity 
includes all natural expense object subclassifications such as salaries 
and wages, fringe benefits, material and supplies, purchased services, 
lost or damaged freight, and casualties.
Train Operations Subactivity--(XX-31-XX)
    This activity excludes all expenses assignable to the Way and 
Structures, Equipment, and General and Administrative activities, as 
well as those expenses for noncarrier operations and nonoperating 
functions.
    (1) Train Operations subactivity of the Transportation activity 
refers to operations of all trains except those performing yard 
functions in terminals. It includes running trains in road or way 
service; switching trains except where such switching is performed 
within yards or terminals; and making customer pick-ups and deliveries 
except in yards and terminals.
    It also provides for dispatching, controlling, reporting, and 
monitoring road train movements; inspecting and lubricating trains; 
servicing, fueling, and cleaning (not repairing or maintaining) 
locomotives; purchasing or producing electric power for motive power; 
and operating supporting activities such as communications, signaling, 
crossing protection, and interlockings.
    This subactivity also includes crew calling and transporting; crew 
lodging, meals, and other expenses; lost or damaged freight; casualties 
and insurance; clearing wrecks; and operating joint tracks and 
facilities except for yards or specialized services. It also includes 
salaries and wages, fringe benefits, material and supplies, fuel and 
lubricants, purchased services, casualty and damages, and other natural 
expense elements incurred in operating trains.
    The Train Operations subactivity excludes the operation of 
specialized services, all of which should be charged to the Specialized 
Services Operations subactivity. However, road or way switching between 
trains and specialized service facilities outside of terminal areas 
belongs to the Train Operations subactivity.
    Work and other nonrevenue train operating costs are to be charged to 
the appropriate supported activity. Shipments of company materials 
normally should be charged to this subactivity,

[[Page 94]]

except where the train movement is exclusively or predominantly for such 
nonrevenue purpose where the supported activity should bear the train 
operating costs.
Yard Operations Subactivity--(XX-32-XX)
    (2) Yard Operations subactivity of the Transportation activity 
refers to classifying cars to make-up or break-down trains; sorting and 
handling waybills in connection with freight car classification and 
switching in yards or terminals; inspecting, servicing, fueling, and 
cleaning (not repairing or maintaining) locomotives and cabooses used to 
provide yard or terminal services; purchasing or producing electric 
power for motive power; diverting or holding cars; and reporting 
operating and car movement data related to yards and terminals. It also 
includes operating supporting activities in yards or terminals, such as 
communications, signaling, and interlockings; yard crew calling and 
transporting; yard crew lodging, meals, and other expenses; lost or 
damaged freight specifically traceable to occurrences resulting from the 
performance of yard operations; casualties and insurance related to yard 
operations; clearing wrecks which occurred in the performance of yard 
operations; and operating joint yards and terminals.
    Within terminals, this subactivity includes pick-up or delivery of 
freight cars from or to customer spur tracks, team tracks, freight 
houses, interchange tracks, rip tracks, and specialized service 
facilities. It also includes salaries and wages, fringe benefits, 
material and supplies, fuel and lubricants, purchased services, casualty 
and damages, and other natural expense elements incurred in operating 
yards and terminals.
    The Yard Operations subactivity includes the cost of switching 
operations within facilities for Specialized Services and switching or 
transfer operations between yards and the specialized service 
facilities. The latter is not limited or affected by definitions or 
restrictions contained in carrier operating rules or labor agreements. 
It is related solely to the defined operations when they are performed 
in a yard or terminal area.
Train and Yard Common Subactivity--(XX-33-XX)
    (3) Train and Yard Common subactivity of the Transportation activity 
refers to the function of adjusting and transferring loads; and placing 
and removing car loading devices and grain doors. It also includes lost 
or damaged freight not specifically traceable to numerous activities 
resulting from performance of train, yard, or specialized services 
operations. It also includes salaries and wages, fringe benefits, 
material and supplies, purchased services, and other natural expense 
elements incurred in performing the functions defined above. It excludes 
the natural expense elements of casualties and insurance, which shall be 
charged to the Train Operations and Yard Operations subactivities.
Specialized Services Operations Subactivity--(XX-34-XX)
    (4) Specialized Services Operations subactivity of the 
Transportation activity refers to operating services which are 
specialized in nature and in cost characteristics, including all of 
those so designated by the Board. The purpose of segregating the cost of 
such services is primarily to preclude distortion of general costs 
applicable to the Train Operations and Yard Operations subactivities. 
Secondarily, further breakout of the costs of operating individual 
specialized services can be provided in less detail than the full range 
of natural expense accounts, in reports used for recurring cost analysis 
purposes pertaining to each type of specialized service.
    The designated specialized services operations are as follows:
    (a) TOFC/COFC Operations refers to the function of operating rail-
to-ground or water and ground or water-to-rail transfer facilities for 
handling trailers or containers, including related storage; and the 
highway movement of trailers or containers within a terminal area for 
purposes of pick-up, delivery, or interchange.
    The service includes loading, tie-down, and/or unloading flat cars 
or dollies and piggyback trailers to or from

[[Page 95]]

highway tractors; moving trailers, dollies, or containers within the 
facility; servicing, cleaning, and fueling (but not repairing or 
maintaining) facility equipment; operating storage areas; and 
casualties, claims, and insurance relating to the facility.
    TOFC/COFC Operations do not include Plan V or other arrangements, 
where there is a division of revenues between the rail and motor 
carrier. They do not include switching services performed within the 
facility by yard or road crews. They also do not include the functions 
of the Way and Structures, Equipment, and General and Administrative 
activities, or the Train, Yard, Train and Yard Common, or Administrative 
Support Operations subactivities.
    (b) Floating Operations refers to operations of water vessels and 
equipment in revenue service. They include the operation of carferries, 
tugs, barges, lighterage, and all other forms of water craft.
    Floating operations exclude operations includable in the 
Administrative Support Operations subactivity, and the switching 
transfer of cars between general yards or trains and the facility or a 
dedicated yard serving the facility, or switching within the dedicated 
supporting terminal facility when performed by yard crews. They also do 
not include costs appropriate to the Way and Structures, Equipment, or 
General and Administrative activities.
    Floating operations should be classified by line and terminal 
operations. The distribution should be made based on the nature of the 
operation and not the facility or equipment. When the service occurs 
between distinct terminals, the operation should be considered a line 
operation. When the service is conducted within a general terminal or 
harbor area, the operation should be considered a terminal operation.
    (c) Coal Terminal Operations and Ore Terminal Operations refers to 
operations of rail-to-water or water-to-rail transloading facilities for 
coal or for ores, including related storage, blending, and other 
processing or handling at the facility. These operations include loading 
and/or unloading rail cars or water vessels at the facility; moving 
commodities within the facility by whatever means; operating the 
facility's pollution control equipment; operating and directing the 
operations of moorings and tugboats; servicing, cleaning, and fueling 
(but not repairing or maintaining) facility equipment; operating storage 
areas; and casualties, claims, and insurance relating to the facility.
    These terminal operations do not include costs appropriate to the 
Way and Structures, Equipment, or General and Administrative activities. 
They also do not include costs appropriate to the Train Operations, Yard 
Operations, Train and Yard Operations Common, or Administrative Support 
Services Operations subactivities. Switching transfer of cars between 
general yards or trains and the facility or a dedicated yard serving the 
facility and switching within the dedicated supporting terminal facility 
when performed by yard crews should be charged to the Yard Operations 
subactivity.
    (d) Other Marine Terminal Operations refers to the operations of 
marine terminals other than those for which a separate designated 
specialized service operation category is provided.
    (e) Motor Vehicle Loading and Distribution Facility Operations 
refers to the operations of facilities for loading, unloading, or 
storing motor vehicles.
    (f) Protective Service Operations refers to the function of 
servicing, cleaning, and fueling (but not repairing or maintaining) 
mechanical protective service equipment.
    (g) Other Specialized Services Operations refers to the function of 
performing rail substitute service, other highway revenue service, LCL 
terminal operations, warehouse operations, freight car transloading, 
grain elevator terminal operations, livestock feeding operations, and 
other specialized services designated by the Board. It includes the 
transportation operating expenses of only those services listed above.
Administrative Support Operations Subactivity--(XX-35-XX)
    (5) Administrative Support Operations subactivity refers to 
operations providing direct administrative support to the overall 
Transportation activity. It includes administrative support for the

[[Page 96]]

Common, and the Specialized Services Operations subactivities. The 
administrative support operations includes receiving and processing 
customer orders, requesting cars, preparing waybills, rating shipments, 
billing customers, collecting customer receivables in the ordinary 
course of business (not to include treasury, legal, general accounting, 
revenue accounting, or credit operations, all of which are chargeable to 
the General and Administrative activity), billing and recording 
demurrage, reporting interchanges, reporting advances, and the initial 
reporting and summarization of input documents for purposes of cash 
collection and accounting. Any operations beyond the initial 
summarization and reporting of input data are assignable to the General 
and Administrative activity except for those otherwise included in the 
definition of this subactivity.
    Carrier staff, administrative, or clerical operations related to 
operating or transportation department general administration should not 
be charged to this subactivity. The Administrative Support Operations 
subactivity may be performed at local stations, regional offices, or 
even at the general offices; however, the location of the operation 
performance does not affect its nature. The operations included in this 
subactivity should reasonably correlate to the quantity of shipments or 
to the quantity of carloadings.
General and Administrative Activity--(XX-60-XX)
    (D) General and Administrative activity refers to the providing of 
overall administration or other general support for carrier operations. 
It comprehends only that portion of general and administrative 
activities that relates to carrier operations (as distinguished from 
noncarrier operations or nonoperating activities) including executive, 
legal, financial, treasury, accounting, budgeting, taxation, corporate 
planning, costing, marketing, advertising, traffic, corporate secretary, 
public relations, real estate, insurance administration, personnel 
administration, pension plan administration, general purchasing, labor 
relations, internal auditing, industrial engineering, and regulatory 
reporting.
    This activity excludes expenses incurred for noncarrier operations 
of the carrier company as well as for general administration of the 
corporate entity and nonoperating income or expenses. It also excludes 
expenses in performance of or direct support for Way and Structures, 
Equipment, and Transportation activities, with particular attention to 
the Administrative Support Operations subactivity.



OPERATING EXPENSE ACCOUNTS--Table of Contents



                    Section 3--Function Explanations

    Note: Functions do not necessarily correlate to organizational 
structure. A particular department may not have a specific USOA expense 
function code. However, its costs may be includable under various 
function codes. Costs not properly chargeable to specific functions 
should be assigned to Function Code 99, Other.
    (a) Functions Related to the Way and Structures Activity
    (1) Administration Functions.
    (02) Administration, Track--General administration and supervision 
of central, regional, and divisional engineering functions related to 
repair and maintenance of track. Used only in Way and Structures--Other. 
Included are:

     General engineering and design.
     Valuation engineering for maintenance and 
improvements.
     Planning and supervision of repair and 
maintenance work.
     Budget preparation, clerical support, and similar 
functions.

    (03) Administration, Bridges and Buildings--General administration 
and supervision of central, regional and divisional engineering 
functions related to repair and maintenance of bridges and buildings. 
Used only in Way and Structures--Other. Included are:

     General engineering and design.
     Valuation engineering for maintenance and 
improvements.
     Planning and supervision of repair and 
maintenance work.
     Budget preparation, clerical support, and similar 
functions.

    (04) Administration, Signals--General administration and supervision 
of

[[Page 97]]

central, regional, and divisional engineering functions related to 
repair and maintenance of signals. Used only in Way and Structures--
Other. Included are:

     General engineering and design.
     Valuation engineering for maintenance and 
improvements.
     Planning and supervision of repair and 
maintenance work.
     Budget preparation, clerical support, and similar 
functions.

    (05) Administration, Communications--General administration and 
supervision of central, regional, and divisional engineering functions 
related to repair and maintenance of communication facilities. Used only 
in Way and Structures--Other. Included are:

     General engineering and design.
     Valuation engineering for maintenance and 
improvements.
     Planning and supervision of repair and 
maintenance work.
     Budget preparation, clerical support, and similar 
functions.

    (06) Administration, Other--General administration and supervision 
of central, regional, and divisional engineering functions related to 
repair and maintenance of other roadway property. Used only in Way and 
Structures--Other. Included are:

     General engineering and design.
     Valuation engineering for maintenance and 
improvements.
     Planning and supervision of repair and 
maintenance work.
     Budget preparation, clerical support, and similar 
functions.

    (2) Repair and Maintenance Functions--These functions include:

     Repair and maintenance work on road property and 
equipment, including gang foreman, shop foreman, and other supervisors 
with direct authority over workers; all higher levels of supervision are 
included in the Administration function.
     Work train service. Crew wages are to be charged 
directly; other work train expenses except fuel may be apportioned if 
not solely identifiable to work train service.
     Store expense and shop expense.

    (10) Repair and Maintenance, Roadway--Roadway, cuts, fills, banks, 
embankments, subgrade, roadbed, ditches, drains, landscaping; cutting 
and removing grass, brush, debris; dressing ballast; preventing and 
extinguishing fires; patrolling and inspection; roadway relocation.
    (11) Repair and Maintenance, Tunnels and Subways--Repaving, 
ventilating, lighting, other maintenance.
    (12) Repair and Maintenance, Bridges and Culverts--Bridges, 
trestles, culverts and elevated structures which carry tracks; 
repairing, filling, dredging, cleaning, watching these structures.
    (13) Repair and Maintenance, Ties--Cross, switch, bridge, and other 
track ties. This function includes expenses associated with unloading, 
distributing and placing ties in tracks.
    (14) Repair and Maintenance, Rails and Other Track Material--All 
track material used in repair of tracks except ballast and ties. This 
function includes expenses associated with unloading and installing Rail 
and Other Track Material.
    (16) Repair and Maintenance, Ballast--Gravel, stone, slag, cinders, 
sand, and like material.
    (19) Repair and Maintenance, Signals and Interlockers--Signals and 
interlockers and related apparatus governing train movement.
    (20) Repair and Maintenance, Communications Systems--Telephone, 
telegraph, radio, radar, inductive train communication, and other 
communication systems, including terminal equipment.
    (21) Repair and Maintenance, Power Systems--Power plants, 
substations, transmission and distribution systems.
    (22) Repair and Maintenance, Highway Grade Crossings--Highway grade 
crossing signals, gates, and related apparatus.
    (23) Repair and Maintenance, Station and Office Buildings--Station 
and office buildings, fixtures, appurtenances, and grounds.
    (24) Repair and Maintenance, Shop Buildings--Locomotives--Shops and 
buildings, fixtures, appurtenances, and grounds, used for the repair, 
maintenance and servicing of locomotives.
    (25) Repair and Maintenance, Shop Buildings--Freight Cars--Shops and 
buildings, fixtures, appurtenances, and grounds, used for the repair, 
maintenance, and servicing of freight cars.
    (26) Repair and Maintenance, Shop Buildings--Other--Shops and 
buildings,

[[Page 98]]

fixtures, appurtenances, and grounds, used for the repair, maintenance, 
and servicing of revenue service equipment other than locomotives and 
freight cars; roadway machines; work equipment and the like.
    (27) Repair and Maintenance, Locomotive Servicing Facilities--Fuel 
and water stations, fixtures, appurtenances, and grounds.
    (28) Repair and Maintenance, Miscellaneous Buildings and Structures. 
All permanent buildings and structures, and their fixtures, 
appurtenances, and grounds, not otherwise provided for. (Includes 
storehouses.)
    (29) Repair and Maintenance, Coal Terminals--Wharves, docks, and 
other loading or unloading facilities for handling coal, including 
conveyors, machinery and fixtures.
    (30) Repair and Maintenance, Ore Terminal--Wharves, docks, and other 
loading or unloading facilities for handling ores and other bulk mineral 
commodities, including conveyors, machinery and fixtures.
    (31) Repair and Maintenance, TOFC/COFC--Terminals--TOFC/COFC 
terminal structures, fixtures, machinery and appurtenances, used for 
transfer of trailers and containers.
    (32) Repair and Maintenance, Other Marine Terminals--Marine terminal 
structures, fixtures, machinery and appurtenances not otherwise provided 
for.
    (33) Repair and Maintenance, Motor Vehicle Loading and Distribution 
Facilities--Buildings, structures, fixtures, machinery and appurtenances 
used for receipt, loading, unloading, and distribution of motor 
vehicles.
    (35) Repair and Maintenance Facilities for Other Specialized 
Services Operations--Buildings, structures, machinery, fixtures and 
grounds, used as part or whole of a revenue-producing specialized 
service.
    (36) Repair and Maintenance, Roadway Machines--Machines and 
equipment used for repairs of roadway and structures.
    (37) Small tools and Supplies--Cost of small tools and supplies used 
in repair and maintenances.
    (38) Snow Removal--Removal of snow and ice; plow and flange service; 
setting up, taking down and storing fences. If the amount of labor 
expense is not substantial, the wages of those employees who perform 
snow removal duties may be included in the appropriate expense accounts 
for the duties they are normally assigned.
    (39) Dismantling Retired Property--Dismantling retired road property 
when the property is not to be replaced through normal maintenance, 
addition or betterment.
    (48) Road Property Damaged--Repair of roadway property and 
structures, used in revenue service, and all equipment not used in 
revenue service, when damage is caused by derailments, collision, fire, 
explosions, sabotage, other casualties, and excluding damage resulting 
through normal operations or use; such as part failures, overloads, 
overheating, short circuits and similar events. Part failures through 
normal operations are those where the resulting damage is restricted to 
the unit of road property which experienced the failure. When the damage 
extends to other units of road property, related expenses shall be 
charged to this function.
    (3) Other Function.
    (99) Other--All expenses not properly includable in the above 
functions.
    (b) Functions Related to the Equipment Activity
    (1) Administrative Functions.
    (01) Administration, General--General administration and supervision 
of central, regional, and divisional repair and maintenance functions. 
Included are:

     General engineering and design.
     Valuation engineering for maintenance and 
improvements.
     Planning and supervision of repair and 
maintenance of equipment.
     Budget preparation, clerical support, and similar 
functions.

    (2) Repair and Maintenance Functions--These functions include:

     Repair and maintenance work on equipment 
including gang foreman, shop foreman, and other supervisors with direct 
authority over workers; all higher levels of supervision are included in 
the Administrative function.
     Store expense and shop expense.

    (39) Dismantling Retired Property--Dismantling retired equipment 
when the property is not to be replaced

[[Page 99]]

through normal maintenance, addition or betterment.
    (40) [Reserved]
    (41) Repair and Maintenance, Locomotives--Repair of locomotives in 
revenue service.
    (42) Repair and Maintenance, Freight Cars--Repair of freight cars 
and attached motor equipment in revenue service.
    (43) Repair and Maintenance, Trucks, Trailers, Containers in Revenue 
Service--Repair, inspection, and lubrication of trucks, trailers and 
containers in revenue service.
    (44) Repair and Maintenance, Floating Equipment in Revenue Service--
Floating equipment including appurtenances.
    (45) Repair and Maintenance, Passenger and Other Revenue Equipment--
Repair, inspection and lubrication of passenger train cars and attached 
motor equipment, and other equipment used in revenue service.
    (46) Repair and Maintenance, Computer Systems and Word Processing 
Systems--Computers and attached peripheral equipment; data recording and 
punch-card processing equipment; word processing equipment.
    (47) Repair and Maintenance, Work and Other Non-Revenue Equipment--
Rail and floating work equipment and appurtenances, and all other 
equipment not used in revenue service and not provided for elsewhere.
    (48) Equipment Damaged--Repair of locomotives, freight cars, other 
equipment used in revenue service, and all equipment not used in revenue 
service, when damage is caused by derailment, collision, fire, 
explosions, sabotage, washouts, or other casualties, and excluding 
damage resulting through normal operations or use, such as part 
failures, overloads, overheating, short circuits and the like. Part 
failures through normal operations are those where the resulting damage 
is restricted to the equipment that experienced the failure. When the 
damage extends to other units of equipment, related repairs shall be 
charged to this function.
    (49) Repair and Maintenance, Shop Machinery--Locomotives--Repair of 
shop machinery and other apparatus, including special foundations used 
for the repair, maintenance and servicing of locomotives.
    (50) Repair and Maintenance, Shop Machinery--Freight Cars--Repair of 
shop machinery and other apparatus, including special foundations for 
the repair, maintenance and servicing of freight cars.
    (51) Repair and Maintenance, Shop Machinery--Other Equipment--Repair 
of shop machinery and other apparatus, including special foundations for 
the repair, maintenance and servicing of other equipment.
    (3) Other Function.
    (99) Other--All equipment expenses not properly includable in the 
above functions.
    (c) Functions Related to the Transportation Activity
    (1) Administrative Function.
    (01) Administration, General--General administration and supervision 
of central, regional, and divisional operational functions. Included 
are:

     Planning and supervision of train, yard, common, 
specialized services and support operations.
     Budget preparation, clerical support, and similar 
functions.

    [Not applicable to the Train and Yard Common Subactivity.]

    (2) Operations Functions.
    (56) Engine Crews--Operation of trains in line-haul revenue service 
by enginemen, including crew meals, lodging, deadheading and other 
expenses.
    (57) Train Crews--Operation of trains in line-haul revenue service 
by trainmen, including crew meals, lodging, deadheading, and other 
expenses.
    (58) Dispatching Trains--Costs include dispatchers, supporting 
staff, train order stations and operators, office and supplies expense.
    (59) Operating Switches, Signals, Interlockers, Retarders, Humps--
Operators, switch tenders, supplies, etc.
    (60) Operating Drawbridges--Engineers, tenders, watchmen, supplies, 
etc.
    (61) Highway Crossing Protection--Gatekeepers, flagmen, lighting, 
supplies, etc.
    (62) Train Inspection and Lubrication--Inspection and lubrication of 
trains (cars and locomotives), including minor repairs made by 
inspectors. This includes the inspection of train locomotives when 
indistinguishable from

[[Page 100]]

the inspection and lubrication of train cars.
    (63) Clearing Wrecks--Removal of equipment, freight or other goods, 
and property of others damaged in wrecks; note that repair of wreck 
damage caused to roadway property and equipment is classified as 
function Code 48--Road Property and Equipment Damaged.
    (64) Switch Crews--Operation of trains and locomotives in yard and 
terminal revenue switching service by enginemen and trainmen, including 
associated expenses.
    (65) Controlling Operations--Directing the operations of yard and 
terminal interchange and classification service, including office and 
supplies expense.
    (66) Yard and Terminal Clerical--Clerical work in support of the 
operation of yard and terminal switching and classification service, 
including office and supplies expense.
    (67) Locomotive Fuel--Cost of locomotive fuel used in all service, 
including the receipt, storage, and dispensing of the fuel.
    (68) Electric Power Purchased/Produced for Motive Power--Purchase 
cost and cost of producing electric power for use by electrically-
powered motive equipment in all service.
    (69) Servicing Locomotives--Preparing locomotives for switching 
service in yards and for train service, including moving locomotives 
around engine yards. This includes the inspection and lubrication of 
yard locomotives and may include the inspection and lubrication of train 
locomotives where distinguishable from the inspection and lubrication of 
train cars.
    (70) Cleaning Car Interiors--Cleaning and preparing car interiors 
for revenue service, including minor repairs made by car cleaners. This 
includes payment for cleaning cars due to spoilage of perishable 
shipments.
    (71) Adjusting and Transferring Loads--Transferring, picking up, 
straightening, and reloading freight in the ordinary course of 
transportation.
    (72) Car Loading Devices and Grain Doors--Servicing car loading 
devices and placing and removing grain doors.
    (73) Pickup & Delivery, Marine Line Haul & Rail Substitute Service--
Operation of trucks, floating equipment, and all other specialized 
equipment providing line haul movement for revenue including TOFC/COFC 
pick-up and delivery.
    (74) Loading & Unloading and Local Marine--All other specialized 
services in the transportation activity such as TOFC/COFC loading, 
unloading, and tie down; coal and ore loading and unloading; and other 
similar functions.
    (75) Protective Services--Inspecting, servicing, cleaning, and 
fueling protective equipment and devices.
    (76) Clerical and Accounting Employees--Direct administrative 
support to the Transportation Activity, including receiving and 
processing customer orders, requesting cars, preparing waybills, rating 
shipments, billing customers, collecting customer receivables in the 
ordinary course of business, billing and recording demurrage, reporting 
interchanges, reporting advances, and the initial summarization and 
reporting of input data.
    (77) Communications Systems Operation--Cost of operating 
communications systems; when such operations are an integral part of 
other functions, only specifically identifiable costs of operating 
communications systems are to be allocated to this function.
    (78) Loss and Damage Claims Processing--Receipt, investigation, 
other handling, and adjustment and settlement of claims for loss or 
damage of freight or other goods carried in revenue service. Does not 
include handling claims for personal injury or for loss or damage of 
other property.
    (3) Other Function.
    (99) Other--All transportation expenses not properly includable in 
the above functions.
    (d) Functions Related to the General and Administration Activity
    (1) Administrative Function.
    (01) Administration, General--General administration and supervision 
of central, regional, and divisional general functions. Included are:

     Planning and supervision of general and 
administrative functions.
     Budget preparation, clerical support, and similar 
functions. It includes the overall responsibility for two or more of the 
General and Administrative functions listed below or the responsibility 
that expands to more than one activity.


[[Page 101]]


    (2) General Functions.
    (86) Accounting, Auditing, Finance--General and corporate 
accounting, auditing by internal auditors and outside accountants, 
treasury, tax accounting and returns, financial reporting, corporate 
planning related to investment decisions and budgeting.
    (87) Management Services and Data and Word Processing--Systems 
planning and design, programming, computer operations, data control, key 
entry of data, and related activities; This includes operating expenses 
associated with a particular computer system or word processing 
equipment that is dedicated to more than one activity. This does not 
include expenses associated with computer systems or word processing 
equipment dedicated exclusively to the Way and Structure, Equipment or 
Transportation Activity; these expenses shall be charged to the 
appropriate subactivity/function.
    (88) Marketing--Market planning and analysis, traffic analysis, 
costing, pricing, and related activities.
    (89) Sales--Traffic solicitation and related sales efforts.
    (90) Industrial Development--Efforts to locate industries on real 
estate accessible to the railroad's lines for the purpose of creating 
future revenues.
    (91) Personnel and Labor Relations--Efforts to attract and retain 
employees, handle fringe benefit plans, monitor and negotiate labor 
contracts, maintain employee data and records, coordinate training 
programs, handle grievances, handle employee transfers, operate job 
safety and equal opportunity programs, and related activities.
    (92) Legal and Secretarial--Legal functions handled by attorneys and 
supporting staff; including lawsuits, injury and damage claims, commerce 
matters, and similar functions; corporate secretarial functions 
involving shareholder records, corporate minutes, stock certificates, 
and similar items.
    (93) Public Relations and Advertising--Public relations activities 
with governmental bodies, shippers, and the general public; advertising 
in the media, booklets, publications; open houses and tours; and similar 
activities.
    (94) Research and Development--Research into the use of methods, 
procedures, practices, equipment, machinery tools, and plant, and in 
determining and measuring the impact of factors or costs not previously 
known, with the intention of finding ways to improve maintenance, 
operations, administration, rates, productivity, environmental impact, 
and similar items. Does not include specific studies or development 
efforts for which an implementation decision has already been made.
    (3) Other Function.
    (99) Other--All general and administration expenses not properly 
includable in the above functions.



INCOME ACCOUNTS--Table of Contents





Ordinary Items--Table of Contents



501 Railway operating revenues.
    This account is a summarization of Railway Operating Revenue 
Accounts 101 to 122. It excludes transfers from governmental authorities 
except when the transfer payment is for specific services for 
transporting property or persons by rail line other than commuter 
operations and local rail service subsidies granted under authority of 
the Railroad Revitalization and Regulatory Reform Act of 1976 [See 
Instruction 1-15(e)(2)].

[52 FR 4346, Feb. 11, 1987]
502 Railway operating revenues--transfers from government authorities 
for current operations.
    This account shall include amounts received or receivable from 
Federal, state, or municipal authorities which are specifically 
designated to offset operating expenses, or which may be applied at the 
discretion of the railroad to operating expenses and/or railroad 
property.
    This account shall also include amounts received from government 
authorities to offset operating costs sustained on specific lines or in 
certain regions. Examples are: (1) Local Rail Service Assistance 
Subsidies granted to the carrier under authority of the Railroad 
Revitalization and Regulatory Reform Act of 1976, and (2) payments by 
regional transit authorities

[[Page 102]]

in connection with specified operations performed by the carrier.
    This account shall also include indirect receipts which reduce 
operating expenses, such as assumption of station maintenance costs, 
abatement of taxes, or other indirect contributions by government 
agencies, if clearly identifiable and measurable.
    Note: This account shall not include receipts from government 
authorities designated for the acquisition, addition to, or improvement 
of railway operating property. (See instruction 1-15.)

(49 U.S.C. 304, 320)

[43 FR 30558, July 17, 1978]
503 Railway operating revenues--amortization of deferred transfers from 
government authorities.
    This account shall include the amortization applicable to amounts 
representing the cost of acquisition, addition to, or improvement of 
depreciable operating property received from Federal, state, or 
municipal authorities. (See instruction 1-15, and account 783, 
``Deferred Revenues--Transfers from Government Authorities.'')

(49 U.S.C. 304, 320)

[43 FR 30558, July 17, 1978]
506 Revenues from property used in other than carrier operations.
    This account shall include the total revenues derived from property 
used in other than carrier operations, the cost of which is includible 
in balance-sheet account 737, ``Property used in other than carrier 
operations.''
510 Miscellaneous rent income.
    (a) This account shall include such rents of property owned and 
controlled by the accounting carrier as are not provided for in the 
foregoing accounts.
    (b) This account shall be charged with the cost of maintenance of 
the property rented, also specific incidental expenses in connection 
with such property, such as the cost of negotiating contracts, 
advertising for tenants, fees paid conveyancers, collectors' 
commissions, and analogous items.

    Note A: Taxes on property the rent of which is creditable to this 
account shall be charged to account 64-61-00, Property Taxes.
    Note B: The rent from property carried in account 737, Property used 
in other than carrier operations, shall not be included in this account. 
Such rents shall be included in account 506, Revenues from property used 
in other than carrier operations.
    Note C: Rent and other income from real estate acquired for new 
lines or for additions and betterments shall be credited to the 
appropriate road and equipment accounts until the completion or coming 
into service of the property.
    Note D: Rent and other income from real estate acquired for new 
lines or for additions and betterments shall be credited to the 
appropriate road and equipment accounts until the completion or coming 
into service of the property.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4346, Feb. 11, 1987]
512 Separately operated properties; profit.
    (a) This account shall include amounts earned under the terms of 
agreements or contracts whereby the net income resulting from the 
operation by others or properties of other companies having a separate 
corporate existence is to be paid, in whole or in part, to the 
accounting company.
    (b) In determining the amount earned by the accounting company, 
consideration shall be given not only to the operating revenues and 
operating expenses but also to other items of income or deduction which 
affect that amount.

    Note A: The amount payable by the operating company shall be charged 
by it to account 550, Income Transferred under Contracts and Agreements.
    Note B: Dividends or other returns upon securities issued by 
separately operated companies, and held or controlled by the accounting 
company, shall be included in accounts 513, ``Dividend income,'' 514, 
``Interest income,'' or 516, ``Income from sinking and other funds,'' as 
may be appropriate.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
513 Dividend income.
    (a) This account shall include dividends declared on railway and 
other stocks, the income from which is the property of the accounting 
company, whether such stocks are owned by the accounting company and 
held in its treasury or deposited in trust, or are controlled through 
lease or otherwise.

[[Page 103]]

    (b) Dividends declared shall not be credited prior to actual 
collection unless their payment is reasonably assured by past 
experience, guaranty, anticipated provision, or otherwise. (See note C 
to account 708, ``Interest and dividends receivable.'')
    (c) Accruals of guaranteed dividends may be included in this account 
if their payment is reasonably assured.

    Note A: This account shall not include credits for dividends on 
stocks issued or assumed by the accounting company and owned by it, 
whether pledged as collateral or held in its treasury, in special 
deposits, or in sinking or other funds.
    Note B: Dividends on stocks of other companies held in sinking or 
other funds shall be credited to account 516, ``Income from sinking and 
other funds.''
514 Interest income.
    (a) This account shall include the interest on securities and 
debenture stock of other companies, the income from which is the 
property of the accounting company whether such securities are owned by 
the accounting company and held in its treasury or deposited in trust, 
or are controlled through lease or otherwise.
    (b) The account shall also include interest on notes and other 
evidences of indebtedness and interest on bank balances, open accounts, 
and other analogous items, including discount or short-term notes. 
Interest shall not be accrued unless its payment is reasonably assured 
by past experience, guaranty, anticipated provision, or otherwise. (See 
note C to account 708, ``Interest and dividends receivable.'')
    (c) At the option of the accounting company there may be included 
each year in this account the portion, applicable to the fiscal period, 
of the amount requisite to extinguish, during the interval between the 
date of acquisition and the date of maturity, the discount or premium on 
securities of other companies owned (other than short-term notes). 
Amounts thus credited or charged shall be concurrently charged or 
credited to the account in which the cost of the securities is carried. 
The discount on short-term notes shall be distributed through equal 
monthly credits, over the terms of the notes.

    Note A: This account shall not include interest on securities issued 
or assumed by the accounting company and owned by it, whether pledged as 
collateral or held in its treasury, in special deposits, or in sinking 
or other funds.
    Note B: Interest on securities other than those of the accounting 
company, and on other assets held in sinking or other funds shall be 
included in account 516, ``Income from sinking and other funds.''
    Note C: Discount on bills for material purchased shall be credited 
to the accounts to which is charged the cost of the material with 
respect to which the discount is allowed.
516 Income from sinking and other funds.
    (a) This account shall include the income on cash, securities, and 
other assets (not including securities issued or assumed by the 
accounting company) held in sinking and other funds. (See note C to 
account 708, ``Interest and dividends receivable.'')
    (b) At the option of the accounting company there may be included 
each year in this account the portion, applicable to the fiscal period, 
of the amount requisite to extinguish, during the interval between the 
date of acquisition and the date of maturity, the discount or premium on 
funded securities held in sinking or other funds. Amounts thus credited 
or charged shall be concurrently charged or credited to the account in 
which the cost of the securities is carried.
517 Release of premiums on funded debt.
    This account shall include, during each fiscal year, such proportion 
of the premiums on outstanding funded debt as may be applicable to the 
period. (See instruction 5-3.)
518 Reimbursement received under contracts and agreements.
    (a) This account shall include amounts received or receivable from 
other companies or individuals, representing the whole or a part of the 
net loss of the accounting company, when under the terms of agreements 
or contract, no obligation for subsequent reimbursement is incurred.
    (b) In determining the amount receivable by the accounting company, 
consideration shall be given not only

[[Page 104]]

to the operating revenues and operating expenses, but also to other 
items of income or deduction which affect that amount.
    Note: The amount payable shall be charged by the contributing 
company to account 545, ``Separately operated properties--Loss.''

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
519 Miscellaneous income.
    (a) This account shall include all items, not provided for 
elsewhere, properly creditable to income accounts during the current 
year. Among the items which shall be included in this account are:

    Cancellation of balance sheet accounts representing unclaimed wages 
and vouchered accounts written off because of carrier's inability to 
locate the creditor.
    Profit from sale of securities carried as temporary cash 
investments.
    Profit from sale of land used for transportation purposes, of 
noncarrier property and of securities acquired for investment purposes.
    Profit from company bonds reacquired.
    Decreases in the valuation allowance (contained within account 702) 
for the marketable equity securities included in current assets.

    (b) Gains from extinguishment of debt shall be aggregated and, if 
material, credited to account 570, ``Extraordinary Items,'' upon 
approval by the Board; however, gains from extinguishment of debt 
(excluding debt maturing serially) which is made to satisfy sinking fund 
requirements, shall be recorded in this account regardless of amount.
531 Railway operating expenses.
    This account shall include total expenses caused by operations, as 
shown in the primary expense accounts provided in these regulations.
534 Expenses of property used in other than carrier operations.
    This account shall include depreciation, rent, taxes, and other 
expenses incurred on property used in other than carrier operations.
    Note: If property for which rent expense is includable in this 
account is sublet, the rent from the sublease shall be included in 
account 506, Revenues from property used in other than carrier 
operations.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
544 Miscellaneous taxes.
    This account shall include all accruals for taxes not provided for 
elsewhere, such as taxes on securities owned, and taxes on income from 
securities owned.
545 Separately operated properties; loss.
    (a) This account shall include amounts payable under the terms of 
agreements or contracts whereby the net loss resulting from the 
operation by others of properties of other companies having a separate 
corporate existence is to be paid, in whole or in part, by the 
accounting company.
    (b) In determining the amount payable by the accounting company, 
consideration shall be given not only to the operating revenues and 
operating expenses, but also to other items of income or deductions 
which affect that amount.

    Note A: The amounts receivable by the operating company shall be 
credited by it to account 518, Reimbursements received under contracts 
and agreements.
    Note B: Dividends or other returns upon securities issued by 
separately operated companies and held or controlled by the accounting 
company shall not be included in this account to offset a deficit 
payable, but in accounts 513, ``Dividend income,'' or 514, ``Interest 
income,'' as may be appropriate.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
546 Interest on funded debt.
    This account shall include the current accruals of interest on all 
classes of long-term debt, the principal of which is includable in 
accounts 765, Funded debt unmatured; 766, Equipment obligations; 767, 
Receivers' and trustees' securities; 768, Debt in default; and 769, 
Accounts Payable; affiliated companies.

    Note A: This account shall not include charges for interest on 
funded debt obligations issued or assumed by the accounting company and 
owned by it, whether pledged as collateral or held in its treasury, in 
special deposits, or in sinking or other funds.

[[Page 105]]

    Note B: When funded debt is incurred for new lines or extensions, or 
for addition and betterment purposes, the accruals of interest on such 
funded debt (less interest received on unexpended balances), to the date 
of completion or coming into service of the property so acquired shall 
be includable in the road and equipment accounts.
    Note C: This account shall be maintained so as to show separately: 
(a) Fixed interest which will be paid, or for which provision for 
payment will be made, when the interest matures; (b) interest in 
default; and (c) contingent interest determined to be payable.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
547 Interest on unfunded debt.
    This account shall include interest accrued on unfunded debt, such 
as short-term notes payable on demand or having maturity dates of one 
year or less from dates of issue, and open accounts, including discount 
and expense on demand and short-term loans, interest on receipts 
outstanding for installments paid on capital stock, interest on deferred 
payments for public improvements, interest on tax deficiencies, 
overcharge claims and court awards, and other analogous items. The 
discount on short-term notes, if of a considerable amount shall be 
distributed through equal monthly charges, over the term of the notes.
    Note: When short-term notes or other evidences of unfunded 
indebtedness are issued for new lines or extensions or for addition and 
betterment purposes the accrual of interest to the date of completion or 
coming into service of the property shall be included in the road and 
equipment accounts.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
548 Amortization of discount on funded debt.
    (a) This account shall be charged during each fiscal period with the 
proportion of the discount on funded debt obligations applicable to that 
period. This proportion shall be determined according to a rule the 
uniform application of which through the interval between the date of 
sale and the date of maturity will extinguish the discount on funded 
debt.
    (b) The charge to this account for any period must not be either 
greater or less than the proportion of the balance remaining unamortized 
applicable to that period so long as any portion of the discount remains 
unextinguished. However, the entire amount for the discount and expense 
applicable to any particular issue of obligations may be charged 
directly to this account at time of issue when the aggregate of such 
amounts does not appreciably affect the accounts. (See instruction 5-
3(b).)
549 Maintenance of investment organization.
    This account shall include the directly assignable administration 
expenses of the accounting company which are incident to its investments 
in leased or nonoperating physical property, and in stocks, bonds, or 
other securities.

                            Items of Expense

Advertising annual reports (lessor companies only).
Calls for bonds in accordance with sinking fund provisions of mortgages.
Directors' fees.
Printing and mailing dividend checks.
Publishing and mailing annual reports and other corporate statements to 
shareholders.
Publishing notices of declaration of dividends.
Law expenses.
Office expenses.
Salaries of officers, clerks, and attendant.
Stationery and printing.
    Note: Administration expenses incident to railway operation are 
includible in the primary accounts provided for in operating expense 
general account series 60-00-00.
550 Income transferred under contracts and agreements.
    (a) This account shall include the whole or any portion of the 
income of the accounting company payable to another company under the 
terms of agreements or contracts without obligation for reimbursement.
    (b) In determining the amount payable by the accounting company, 
consideration shall be given not only to operating revenues and 
operating expenses, but also to other items of income or deduction which 
affect that amount.

    Note A: The amount receivable by the other company shall be credited 
by it to account 512, ``Separately operated properties--Profit.''

[[Page 106]]

    Note B: Dividends or other payments upon securities issued or 
assumed by the accounting company shall not be included in this account.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
551 Miscellaneous income charges.
    (a) This account shall include items, not otherwise provided for in 
the other income accounts. This includes:

Income tax on the interest on the accounting company's funded debt when 
these taxes are assumed by the company.
Payments of old accounts previously written off.
Penalties and fines for violation of the Interstate Commerce Act or 
other federal and state laws.
Loss on sale of securities carried as temporary cash investments.
Loss on sale of land used for transportation purposes and of noncarrier 
property.
Loss on sale of securities acquired for investment purposes, and charges 
to write down the ledger value of such securities because of impairment 
in their value.
Loss from company bonds reacquired.
Increases in the valuation allowance (contained within account 702) for 
the marketable equity securities included in current assets.

    Contributions for charitable, social, or community welfare purposes 
that do not have a direct relation to the protection of company 
property, development of its business, or welfare of its employees.
    (b) Losses from extinguishment of debt shall be aggregated and, if 
material, charged to account 570, ``Extraordinary Items (net),'' upon 
approval by the Board; however, losses from extinguishment of debt 
(excluding debt maturing serially) which is made to satisfy sinking fund 
requirements, shall be included in this account regardless of amount.
    (c) Contributions for charitable, social, or community welfare 
purposes that have a direct relation to the protection of company 
property, development of its business, or welfare of its employees 
should be charged to account 61-61-99, Other Expenses--General and 
Administrative--Other.

(49 U.S.C. 12, 20, 304, 913, and 1012)

[42 FR 35017, July 7, 1977, as amended at 42 FR 64350, Dec. 23, 1977; 52 
FR 4347, Feb. 11, 1987; 67 FR 57533, Sept. 11, 2002]
553 Uncollectible accounts.
    This account shall include losses on receivable, notes, or claims 
that are not includible in account 63-61-00. ``General--Uncollectible 
Accounts--General and Administrative.''
555 Unusual or infrequent items (debit) credit.
    This account shall include material items unusual in nature or 
infrequent in occurrence, but not both, accounted for in the current 
year in accordance with the text of instruction 1-2(d), upon approval by 
the Board.
556 Income taxes on ordinary income.
    This account shall include accruals for Federal, State and other 
income taxes applicable to ordinary income. See the text of account 590, 
for recording other income tax consequences.
557 Provision for deferred taxes.
    (a) This account shall include the net tax effect of all material 
timing differences [See definition 17(e)] originating and reversing in 
the current accounting period and the future tax benefits of loss 
carryforwards recognized in accordance with Instruction 1-10.
    (b) This account shall include credits for the amortization of the 
investment tax credit if the carrier elected to use the deferred method 
of accounting for the investment tax credit. (See instruction 1-10.)

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987; 67 
FR 57533, Sept. 11, 2002]
560 Income or loss from operations of discontinued segments.
    This account shall include the results of operations of a segment of 
a business (see definition 32(a)), after giving effect to income tax 
consequences, that has been or will be discontinued in accordance with 
the text of instruction 1-2(d), upon approval by the Board.
562 Gain or loss on disposal of discontinued segments.
    This account shall include the gain or loss from the disposal of a 
segment of a business, after giving effect to income tax consequences, 
in accordance

[[Page 107]]

with the text of instruction 1-2(d), upon approval by the Board.

[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
570 Extraordinary items (net).
    (a) This account shall include extraordinary items accounted for 
during the current accounting year in accordance with the text of 
instruction 1-2(d), upon submission of a letter from the carrier's 
independent accountants, approving or otherwise commenting on the item 
and upon approval by the Board.
    (b) This account shall be maintained in a manner sufficient to 
identify the nature and gross amount of each debit and credit.
    (c) Income tax consequences of charges and credits to this account 
shall be recorded in account 590, ``Income taxes on extraordinary 
items,'' or account 591, ``Provision for deferred taxes--extraordinary 
items.''
590 Income taxes on extraordinary items.
    This account shall include the estimated income tax consequences 
(debit or credit) assignable to the aggregate of items of both taxable 
income and deductions from taxable income which for accounting purposes 
are classified as unusual and infrequent, and are recorded in account 
570, ``Extraordinary Items (Net).'' The tax effect of any timing 
differences caused by recognizing an item in the account provided for 
extraordinary items in different periods in determining accounting 
income and taxable income shall be included in account 591, ``Provision 
for deferred taxes--extraordinary items.''
591 Provision for deferred taxes--extraordinary items.
    This account shall include debits or credits for the current 
accounting period for income taxes deferred currently, or for 
amortization of income taxes deferred in prior accounting periods 
applicable to items of revenue or expense included in account 570, 
``Extraordinary Items (Net).'' (See instruction 1-10.)
592 Cumulative effect of changes in accounting principles.
    This account shall include the cumulative effect of changing to a 
new accounting principle, after giving effect of income tax 
consequences, in accordance with instruction 1-2(d), upon approval by 
the Board.

                        Form of Income Statement
                            I. Ordinary Items
 
501 Railway operating revenues (exclusive of transfers from       ......
 government authorities)........................................
503 Railway operating revenues (amortization of deferred          ......
 transfers from government authorities).........................
502 Railway operating revenues (amortization of deferred          ......
 transfers from government authorities..........................
531 Railway operating expenses..................................  ......
                                                                 -------
  Net Revenue from Railway Operation \1\........................  ......
                                                                 =======
 
                            II. Other Income
 
506 Revenues from property used in other than carrier operations  ......
510 Miscellaneous rent income...................................  ......
512 Separately operated properties--profit......................  ......
513 Dividend income.............................................  ......
514 Interest income.............................................  ......
516 Income from sinking and other funds.........................  ......
517 Release of premiums on funded debt..........................  ......
518 Reimbursements received under contracts and agreements......  ......
519 Miscellaneous income........................................  ......
 Income from affiliated companies:
  Dividends.....................................................  ......
  Equity in undistributed earnings (losses).....................  ......
                                                                 -------
    Total income from affiliated companies......................  ......
                                                                 =======
    Total other income..........................................  ......
                                                                 =======
    Total income................................................  ......
                                                                 =======
 
                III. Miscellaneous Deductions From Income
 
534 Expenses of property used in other than carrier operations..  ......
535 Taxes on property used in other than carrier operations.....  ......
543 Miscellaneous rent expense..................................  ......
544 Miscellaneous taxes.........................................  ......
545 Separately operated properties-loss.........................  ......
549 Maintenance of investment organization......................  ......
550 Income transferred under contracts and agreements...........  ......
551 Miscellaneous income charges................................  ......
553 Uncollectible accounts......................................  ......
                                                                 -------
    Total miscellaneous deductions..............................  ......
                                                                 =======
    Income available for fixed charges..........................  ......
 
                            IV. Fixed Charges
 
546 Interest on funded debt:
  (a) Fixed interest not in default.............................  ......
  (b) Interest in default.......................................  ......
547 Interest on unfunded debt...................................  ......
548 Amortization of discount on funded debt.....................  ......
                                                                 -------
    Total fixed charges.........................................  ......
    Income after fixed charges..................................  ......
                                                                 =======
 
                           V. Other Deductions
 
546 Interest on funded debt: (c) Contingent interest............  ......
 

[[Page 108]]

 
                     VI. Unusual or Infrequent Items
 
555 Unusual or infrequent items (debt) credit...................  ......
  Income (loss) from continuing operations (before income taxes)  ......
 
                     VII. Provision for Income Taxes
 
556 Income taxes on ordinary income:
  Federal income taxes..........................................  ......
  State income taxes............................................  ......
  Other income taxes............................................  ......
557 Provision for deferred taxes................................  ......
  Income from continuing operations.............................  ......
 
                      VIII. Discontinued Operations
 
560 Income or loss from operations of discontinued segments       ......
 (less applicable income taxes of $----)........................
562 Gain or loss on disposal of discontinued segments (less       ......
 applicable income taxes of $----)..............................
                                                                 -------
    Income (loss) before extraordinary items....................  ......
                                                                 =======
 
             IX. Extraordinary Items and Accounting Changes
 
570 Extraordinary items (net)...................................  ......
590 Income taxes on extraordinary items.........................  ......
591 Provision for deferred taxes--extraordinary items...........  ......
                                                                 -------
    Total extraordinary items...................................  ......
                                                                 =======
592 Cumulative effect of changes in accounting principles (less   ......
 applicable income taxes of $----)..............................
                                                                 -------
    Net income..................................................  ......
------------------------------------------------------------------------
\1\ Reconciliation of net railway operating income (NROI):
  Net revenues from railway operations..........................  ......
(556) Income taxes on ordinary income...........................  ......
(557) Provision for deferred income taxes.......................  ......
(560) Taxes applicable to income or loss from operations of       ......
 discontinued segments..........................................
(562) Taxes applicable to gain or loss on disposal of             ......
 discontinued segments..........................................
  Income from lease of road and equipment (formerly account 509)  ......
  Rent for leased roads and equipment (formerly account 542)....  ......
                                                                 -------
    Net railway operating income................................  ......
 


(49 U.S.C. 304, 320)

[42 FR 35017, July 7, 1977, as amended at 43 FR 30558, July 17, 1978; 67 
FR 57533, Sept. 11, 2002]



RETAINED EARNINGS ACCOUNTS--Table of Contents





Credit--Table of Contents



601 Credit balance (at beginning of calendar year).
    This account shall include the net credit balance in the retained 
earnings account at the beginning of the calendar year.
601.5 Prior period adjustments to beginning retained earnings account.
    This account shall include adjustments net of assigned income taxes, 
in accordance with the text of instruction 1-2(d), to the balance in the 
retained earnings account at the beginning of the calendar year, upon 
approval by the Board.
602 Credit balance transferred from income.
    This account shall show the net credit balance brought forward from 
the income account for the calendar year.
603 Appropriations released.
    This account is provided to return to unappropriated retained 
earnings the amount of appropriations no longer required. The account 
shall be subdivided to show the nature of the appropriations being 
released and the circumstances of the release shall be fully described.
606 Other credits to retained earnings.
    This account shall include other credit adjustments, net of assigned 
income taxes, not provided for elsewhere in this system but only after 
such inclusion has been authorized by the Board.



Debit--Table of Contents



611 Debit balance (at beginning of calendar year).
    This account shall include the net debit balance in the retained 
earnings account at the beginning of the calendar year.
612 Debit balance transferred from income.
    This account shall show the net debit balance brought forward from 
the income account for the calendar year.
616 Other debits to retained earnings.
    (a) This account shall include losses from resale of reacquired 
capital stock, and charges which reduce or write-off discount on capital 
stock issued by the company, but only to the extent that such charges 
exceed credit balances in account 795, ``Other capital,'' applicable to 
net gains from reacquisition and

[[Page 109]]

resale or retirement of such subclass of capital stock. See instruction 
5-4.
    (b) This account shall also include other debit adjustments, net of 
assigned income taxes, not provided for elsewhere in this system but 
only after such inclusion has been authorized by the Board.
620 Appropriations for sinking and other funds.
    This account shall be charged and account 797, ``Retained earnings; 
Appropriated,'' shall be credited with amounts appropriated pursuant to 
provisions of reorganization plans, mortgages, deeds of trust, or other 
contracts requiring payments into sinking funds, capital funds, and 
other funds.
621 Appropriations for other purposes.
    This account shall be charged and account 797, ``Retained earnings; 
Appropriated,'' shall be credited with the amount of appropriations for 
general contingencies, indefinite possible future losses and other 
corporate purposes not provided for elsewhere. The appropriations shall 
be released when their respective purposes have been served.
623 Dividends.
    This account shall be charged with the amount of dividends declared 
on actually outstanding capital stock issued or assumed by the company. 
If the dividend is not payable in cash, the securities or other property 
to be distribruted shall be described with sufficient particularity to 
identify the distribution. This account shall be subdivided to show 
separately the dividends declared on the various subclasses of capital 
stock.
    Note: This account shall not include charges for dividends on 
capital stock issued or assumed by the company and owned by it, whether 
pledged as collateral or held in its treasury, in special deposits, or 
sinking or other funds.



GENERAL BALANCE SHEET ACCOUNTS EXPLANATIONS--Table of Contents





Assets--Table of Contents



                             Current Assets

701 Cash.
    (a) This account shall include money, checks, sight drafts, and 
sight bills of exchange in the hands of the accounting company's 
financial officers and agents, or in transit from its agents and 
conductors for which such agents and conductors have received credit. It 
shall include, also, deposits with banks and trust companies available 
for use on demand, and savings accounts subject to the usual clause 
reserving the right to defer payment for a specified number of days.
    (b) The amount of checks and drafts, which have been transmitted to 
payees and which remain unpaid at the close of the accounting period, 
shall be credited to this account. When the amount of such checks and 
drafts cannot be determined with absolute accuracy, an estimate of the 
amount shall be used. Amounts not transmitted to payees shall be 
included in the appropriate liability accounts.
    Note: Compensating balances under an agreement which legally 
restricts the use of such funds shall not be included in this account. 
Such balances shall be included in account 703, ``Special Deposits,'' or 
717, ``Other Funds,'' as appropriate.
702 Temporary cash investments.
    This account shall include the cost of securities and other 
obligations acquired for the purpose of temporarily investing cash, such 
as United States Treasury certificates, marketable securities, time 
drafts receivable, demand loans, time loans, time deposits with banks 
and trust companies, and other similar investments of a temporary 
character, which are readily convertible into cash at substantially 
their recorded cost.
    This account shall be subdivided to reflect the marketable equity 
securities portion (and its corresponding valuation allowance) and other 
temporary investments. (See instruction 5-2.)

[[Page 110]]

703 Special deposits.
    This account shall include cash deposits, either placed in the hands 
of trustees or under the direct control of the reporting company, which 
are restricted for specific purposes. Examples are those deposits made 
for the payment of dividends and interest due within one year, the 
liquidation of other current liabilities, to guarantee fulfillment of 
current contract obligations to meet specific operating requirements, or 
compensating balances (See definition 10) under an agreement which 
legally restricts the use of such funds, and which constitute support 
for short-term borrowing arrangements. Subaccounts may be set up, if 
necessary, to account for special deposits for specific purposes.
    Note: Deposits available for general company purposes shall be 
included in account 701, ``Cash.''

[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
704 Loans and notes receivable.
    This account shall include the book value of all collectible 
obligations in the form of demand or time loans and notes receivable, or 
other similar evidences (except interest coupons) of money receivable 
within a time not exceeding one year from date of issue.

    Note A: Current loans and notes receivable from affiliated companies 
shall be included in account 708.5, ``Receivables from affiliated 
companies.''
    Note B: Obligations held as investments which mature more than one 
year after date of issue shall be included in accounts 721, 
``Investments and advances: Affiliated companies,'' or 722, ``Other 
investments and advances,'' as appropriate.
    Note C: Loans and notes receivable acquired for the purpose of 
temporarily investing cash shall be included in account 702, ``Temporary 
cash investments.''
705 Accounts receivable; interline and other balances.
    This account shall include the net debit balances receivable from 
other companies representing items such as interline freight, passenger, 
switching, and baggage revenues, charges for equipment interchanged on a 
per diem or mileage basis, and charges, for car repairs, loss and damage 
freight claims, and overcharge claims.
    Note: The amount to be entered in this account is not the net 
balance between this account and account 752, ``Accounts payable; 
Interline and other balances.'' Net credit balances payable to other 
companies shall be included in account 752.
706 Accounts receivable; customers.
    This account shall include amounts currently due from customers for 
transportation and other charges incidental to transportation, and from 
agents and other representatives charged with the collection or custody 
of current revenues.
    Note: Amounts advanced to general and special agents as working 
funds shall be included in account 710, ``Working funds.''
707 Accounts receivable; other.
    This account shall include amounts due in audited accounts, such as 
those due from the United States or other Governments for the 
transportation of mails and Government property, and from express 
companies for express facilities furnished under contract; miscellaneous 
bills against other railway companies, corporations, firms, and 
individuals; and other similar items.

    Note A: The amount to be entered in this account is not the net 
balance between this account and account 754, ``Accounts payable; 
Other.''
    Note B: Amounts due from affiliated companies for miscellaneous 
bills and other items subject to current settlement shall be included in 
account 708.5, ``Receivables from affiliated companies.''
708 Interest and dividends receivable.
    This account shall include the amount of interest accrued to the 
date of the balance sheet on bonds, mortgages, notes, and other 
commercial paper owned, on loans made, open accounts, bank deposits, and 
the amount of dividends declared on stocks owned, and dividends accrued 
on such stocks when contracts require that the dividends be paid at 
stated times.

    Note A: No amount representing interest or dividends receivable 
shall be included in this account unless its payment is reasonably 
assured by past experience, anticipated provision, or otherwise.
    Note B: No dividends or other returns on securities issued or 
assumed by the accounting company shall be included in this account.

[[Page 111]]

    Note C: If settlement of amounts included in this account is not 
made when due, such amounts that are not subject to current settlement 
shall be transferred to account 741, ``Other assets,'' at their 
estimated realizable value. Items of current character but of doubtful 
value, as well as noncurrent items, shall be written off to the extent 
of any estimated uncollectible portion by charge to account 553, 
``Uncollectible accounts''. If notes are taken in settlement of amounts 
included in this account, the amounts shall be transferred to account 
704, ``Loans and notes receivable,'' or account 741, as appropriate. 
(See instruction 5-1.)
    Note D: Current interest and dividends receivable from affiliated 
companies shall be included in account 708.5, ``Receivables from 
affiliated companies,'' and noncurrent amounts receivable shall be 
included in account 721, ``Investments and advances; Affiliated 
companies.''
708.5 Receivables from affiliated companies.
    This account shall include amounts due from affiliated companies 
which are subject to current settlement such as deposits, demand or time 
loans, notes receivable, interest, dividends, miscellaneous bills and 
similar items.
    Note: Receivables from affiliated companies, representing net debit 
balances for items such as operating revenues, charges for equipment 
interchanged, car repairs and claims, shall not be included in this 
account but in account 705, ``Accounts receivable; Interline and other 
balances.''
709 Accrued accounts receivable.
    This account shall include estimates of all unaudited current items 
receivable by the carrier to the date of the balance sheet, including 
those which are creditable to revenue, expense, or income accounts. 
Among the items which shall be included in this account are:

Amounts receivable from others for unreported interline traffic.
Amounts receivable from others for use of facilities, including 
equipment, for which bills have not been rendered.
Amounts receivable from others for services for which bills have not 
been rendered.
Rents receivable for which bills have not been rendered.

709.5 Allowance for uncollectible accounts.
    This account shall be credited with amounts provided for receivables 
which may become uncollectible, and shall be maintained to show the 
amount of each separate allowance set out below and the amounts of 
debits and credits thereto:
    (a) Allowance for receivables applicable to transportation 
operations. Credits to this subdivision shall be concurrently charged to 
account 63-60-00, ``Uncollectible Accounts; General and 
administrative.''
    (b) Allowances for receivables not applicable to transportation 
operations. Credits to this subdivision shall be concurrently charged to 
account 553, ``Uncollectable accounts.''

[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
710 Working funds.
    This account shall include amounts advanced to general and special 
agents, and to other officers and employees, as working funds from which 
certain expenditures are to be made and accounted for. It also includes 
advances to fast freight lines and to demurrage and other bureaus.
    Note: Advances to jointly owned or used terminal companies and other 
companies for permanent working funds or capital purposes shall be 
included in accounts 721, ``Investments and advances; Affiliated 
companies,'' or 722, ``Other investments and advances,'' as appropriate.
711 Prepayments.
    This account shall include the balances in the accounts representing 
short-term prepaid rents chargeable to the appropriate rent accounts as 
the term is consumed for which the rents are paid; also short-term 
interest, and insurance premiums, taxes and licenses, and similar items 
paid in advance of their accrual, which are to be apportioned and 
charged, as they accrue, to the appropriate accounts.
712 Material and supplies.
    (a) This account shall include the balances representing the cost of 
all unapplied material, such as road and shop material, articles in 
process of manufacture by the accounting company, fuel, stationery, and 
dining car and other supplies. In determining the cost of material and 
supplies suitable

[[Page 112]]

allowance shall be made for any purchase discounts allowed. The cost 
shall include all specifically assignable transportation charges 
incurred in obtaining the delivery of such materials and supplies upon 
the premises of the carrier including loading and unloading, and a 
suitable proportion of purchasing and store expenses. The cost shall 
also include sales and excise taxes on material purchases; however, 
sales and excise taxes may be charged to account 65-60-00, ``Other 
taxes; General and administrative,'' provided this procedure will not 
adversely affect the accounts and is consistently followed. Taxes on 
gasoline, other motor fuel, and motor oil are also includible in this 
account.
    (b) Materials recovered for reuse in connection with construction, 
maintenance, or the retirement of property shall be charged to this 
account at cost, or average cost, estimated if not known, less 
accumulated depreciation, if any, plus the cost to restore the materials 
to a serviceable condition, or current market value, whichever is lower. 
(See definition 31, Salvage value.)
    (c) Scrap and other nonusable materials, including obsolete parts, 
shall be included in account 713, ``Other current assets,'' at the 
estimated salvage value when the sale of the materials is imminent and 
there is a relatively firm market price. Obsolete parts not subject to 
imminent sale shall be included in account 741, ``Other assets,'' at 
their net realizable value.
    (d) Material and supplies shall be credited to this account and 
charged to the appropriate operating expense or other account on the 
basis of recorded cost, average cost, or other recognized pricing 
system, provided that such system is consistently applied and is based 
on the cost of such material and supplies.
    (e) An inventory of material and supplies shall be taken during each 
calendar year and the necessary adjustments to bring this account into 
harmony with the actual inventory balances shall be made in the accounts 
of the year in which the inventories are taken. In effecting this 
adjustment, determined differences in accounting for important classes 
of material shall be equitably assigned among the accounts to which the 
classes of material are ordinarily chargeable. Other differences shall 
be equitably apportioned among the primary accounts to which material 
has been charged since the last inventory. (Also see instruction 5-
1(b).)
    Note: Balances representing the cost of unapplied construction 
material and supplies located at the point of use, which have been 
purchased for projected new roads and extensions, or for new railroad 
equipment, shall be included in account 90, ``Construction in 
progress.''

[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
713 Other current assets.
    This account shall include amounts for other current assets which 
are not includible in the foregoing current asset accounts.
714 Deferred income tax debits.
    This account shall include the current portion of deferred income 
tax debits and credits determined in accordance with Instruction 1-10, 
when the balance is a net debit. A net credit balance shall be included 
in account 762, ``Deferred income tax credits''.

(49 U.S.C. 10321, 11145; 5 U.S.C. 553)

[47 FR 12350, Mar. 23, 1982]

                              Special Funds

715 Sinking funds.
    (a) This account shall include the amount of cash, the ledger value 
of live securities of other companies, and other assets which are held 
by trustees of sinking and other funds for the purpose of redeeming 
outstanding obligations, including such assets held in the hands of the 
accounting company's treasurer when the assets are segregated in a 
distinct fund.
    (b) This account shall include amounts deposited with trustees on 
account of mortgaged property sold, where the proceeds are held for the 
redemption of securities; and also the par value (or the amount recorded 
for no par stock) of live securities issued or assumed by the accounting 
company and held in such funds.
    (c) A separate subaccount shall be kept for each fund. The title of 
each subaccount shall designate the obligation redeemable from the fund.

[[Page 113]]

    Note: In stating the balance sheet in the annual reports to the 
Board the total amount of the funds and the par value (or the amount 
recorded for no par stock) of securities issued or assumed by the 
accounting company and held in the funds shall be shown in the short 
columns, and the net amount of the funds (total amount less securities 
issued or assumed) shall be shown in the long column.
716 Capital funds.
    (a) This account shall include cash and the ledger value of other 
assets held by trustees or by the accounting company's treasurer when 
segregated in distinct funds that have been (1) realized from the sale 
of equipment obligations or other long-term obligations and not yet 
applied toward the specific purposes for which the obligations were 
incurred, and (2) set aside in accordance with governmental, mortgage, 
or contractual requirements in connection with reorganizations or 
otherwise. This account shall also include funds deposited with trustees 
to be held until mortgaged property sold is replaced.
    (b) An appropriate record shall be maintained for securities issued 
or assumed by the accounting company and held in the funds, identifying 
those that are nominally issued or nominally outstanding.
    Note: Funds specifically set aside for sinking fund purposes shall 
be included in account 715, ``Sinking funds.'' If one purpose of a 
capital fund is to provide contributions to a sinking fund under 
specified conditions, the entire amount of the fund shall be included in 
this account until the contributions to the sinking fund are made, at 
which time the amounts thereof shall be transferred to account 715.
    Note: The ledger value of assets of the character indicated in 
paragraph (a)(2) of this section, shall be transferred to the 
appropriate current asset account when the assets are definitely 
assigned in advance of expenditure to the payment of interest or other 
current liabilities payable within one year.
717 Other funds.
    This account shall include the amount of cash and the ledger value 
of securities of other companies and other assets which are in the hands 
of trustees or managers of insurance, employees' pension, savings, 
relief, hospital, and other funds which have been raised and 
specifically set aside or invested for specific purposes not provided 
for elsewhere; also the par value (or the amount recorded for no par 
stock) of securities issued or assumed by the accounting company and 
held in such funds. A separate subaccount shall be kept for each fund.

    Note A: Sinking funds and capital funds are provided for in accounts 
715, ``Sinking funds,'' and 716, ``Capital funds,'' respectively.
    Note B: In stating the balance sheet in the annual reports to the 
Board, the total amount of the funds and the par value (or the amount 
recorded for no par stock) of securities issued or assumed by the 
accounting company and held in the funds shall be shown in the short 
columns, and the net amount of the funds (total amount less securities 
issued or assumed) shall be shown in the long column.
    Note C: This account shall not include funds held by the accounting 
company solely as trustee and in which it has no beneficial interest.
    Note D: This account shall include compensating balances (see 
definition 10) under an agreement which legally restricts the use of 
such funds and which constitute support for long-term borrowing 
arrangements.

[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]

                               Investments

721 Investments and advances; affiliated companies.
    (a) This account shall include the ledger value of the accounting 
company's investment in securities issued or assumed by affiliated 
companies other than securities held in special deposits or special 
funds; and also investment advances made to affiliated companies not 
subject to current settlement; notes receivable from affiliated 
companies which mature later than 1 year from date of the balance sheet; 
and similar noncurrent items of affiliated companies.
    (b) This account shall be maintained in such manner as to show each 
of the following classes of investment in each affiliated company:
    (1) Stocks.
    (2) Bonds.
    (3) Other secured obligations.
    (4) Unsecured notes.
    (5) Investment advances.
    (c) A complete record of securities pledged shall be maintained to 
show

[[Page 114]]

separately the ledger value of securities pledged and unpledged in the 
annual report to the Board.

    Note A: Accounts with affiliated companies which are subject to 
current settlement, if their collection is reasonably assured, shall be 
classed as current assets, and if settlement is deferred beyond one year 
such items shall be transferred to this account.
    Note B: The term affiliated companies (also see definition 5(a)) 
includes:
    1. Controlled companies, including companies solely controlled by 
the accounting company, and also companies jointly controlled by the 
accounting company and others under a joint arrangement.
    2. Controlling companies, including both companies solely 
controlling the accounting company, and companies which jointly control 
the accounting company under a joint arrangement.
    3. Companies controlled by controlled companies.
    4. Companies controlled by controlling companies.

By control (also see definition 5(a)) is meant the ability to determine 
the action of a corporation. For the purposes of this account, the 
following are to be considered forms of control:
    (a) Right through title to securities issued or assumed to exercise 
the major part of the voting power in the controlled corporation.
    (b) Right through agreement or source other than title to 
securities, to name the majority of the board of directors, managers, or 
trustees of the controlled corporation.
    (c) Right to foreclose a first lien upon all or a major part in 
value of the tangible property of the controlled corporation.
    (d) Right to secure control because of advances made for 
construction of the operating property of the controlled corporation.
    (e) Right to control only in a specific respect the action of the 
controlled corporation.

A leasehold interest in the property of a corporation is not considered 
a form of control over the lessor corporation.
    Sole control is that which rests in one corporation.
    Joint control is that which rests in two or more corporations and 
which is held under a joint arrangement.
    Note C: The value of securities borrowed by the accounting company 
and pledged shall not be included in this account. A memorandum record 
shall be kept.
    Note D: The value of securities pledged for purposes other than that 
of security for funded debt or short-term loans shall be included in 
accounts 715, ``Sinking funds,'' 716, ``Capital funds,'' or 717, ``Other 
funds,'' as appropriate.

[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
721.5 Adjustments; investments and advances--affiliated companies.
    (a) This account shall be credited with amounts charged to account 
551, ``Miscellaneous income charges,'' to provide for impairment in the 
value of investment securities and other assets included in account 721, 
``Investments and advances; affiliated companies.''
    (b) If provision is made for anticipated losses in specific assets, 
when the assets are written down or written off, or are sold or 
otherwise disposed of at a loss, the reduction in the book value or the 
losses sustained shall be charged to this account to the extent of the 
credit balance in the account applicable to the particular items 
involved, and the remainder, if any, shall be charged to account 551, 
``Miscellaneous income charges.'' Where a general provision for losses 
in unspecified asset values is maintained, all such losses resulting 
from write-downs, write-offs, etc., shall be charged to this account to 
the extent of the total credit balance in the account, and the 
remainder, if any, shall be charged to account 551, ``Miscellaneous 
income charges.''
722 Other investments and advances.
    (a) This account shall include the ledger value of the accounting 
company's investment in securities issued or assumed by nonaffliated 
companies other than securities held in special deposits or special 
funds; and also investment advances made to nonaffiliated companies not 
subject to current settlement; notes receivable from nonaffiliated 
companies which mature later than 1 year from date of the balance sheet; 
and similar noncurrent items of nonaffiliated companies.
    (b) This account shall be maintained in such manner as to show each 
of the following classes of investment in each nonaffiliated company:
    (1) Stocks.

[[Page 115]]

    (2) Bonds.
    (3) Other secured obligations.
    (4) Unsecured notes.
    (5) Investment advances.
    (c) A complete record of securities pledged shall be maintained to 
show separately the ledger value of securities pledged and unpledged in 
the annual report to the Board.

    Note A: Accounts with nonaffiliated companies which are subject to 
current settlement, if their collection is reasonably assured, shall be 
classed as current assets, and if settlement is deferred beyond one year 
such items shall be transferred to account 741, ``Other assets.''
    Note B: The term nonaffiliated companies includes all companies 
other than those defined as affiliated in note B of account 721, 
``Investments and advances: Affiliated companies.''
    Note C: The value of securities borrowed by the accounting company 
and pledged shall not be included in this account. A memorandum record 
shall be kept.
    Note D: The value of securities pledged for purposes other than that 
of security for funded debt or short-term loans shall be included in 
accounts 715, ``Sinking funds,'' 716, ``Capital funds,'' or 717, ``Other 
funds,'' as appropriate.
723 Adjustments; other investments and advances.
    (a) This account shall be credited with amounts charged to account 
551, ``Miscellaneous income charges,'' to provide for impairment in the 
value of investment securities and other assets included in account 722, 
``Other investments and advances.''
    (b) If provision is made for anticipated losses in specific assets, 
when the assets are written down or written off, or are sold or 
otherwise disposed of at a loss, the reduction in the book value or the 
losses sustained shall be charged to this account to the extent of the 
credit balance in the account applicable to the particular items 
involved, and the remainder, if any, shall be charged to account 551. 
``Miscellaneous income charges.'' Where a general provision for losses 
in unspecified asset values is maintained, all such losses resulting 
from write-down, write-offs, etc., shall be charged to this account to 
the extent of the total credit balance in the account, and the 
remainder, if any shall be charged to account 551, ``Miscellaneous 
income charges.''
724 Allowance for net unrealized loss on noncurrent marketable equity 
securities--Cr.
    This account shall reflect the amount by which aggregate cost 
exceeds market value for the noncurrent marketable equity securities 
found in accounts 721 and 722. This account shall be debited or credited 
so that the balance at the balance sheet date shall reflect such 
difference. (Refer to instruction 5-2.)

This account shall not include amounts by which aggregate cost exceeds 
market value if such differences are judged to be other than temporary. 
(Such differences should be charged to account 723.)

                            Tangible Property

731 Road and equipment property.
    This account shall include the accounting company's investment in 
road and equipment (including that held under contract for purchase), 
used or held for use as transportation property in existence at the date 
of the balance sheet. When property is retired from service, this 
account shall be credited with the ledger value of the property retired.

    Note A: This account shall not include any items representing titles 
to securities.
    Note B: When equipment or other property is acquired under an 
agreement which provides that the cost shall be paid in installments, 
the cost (its money value at time of purchase) shall be charged to the 
appropriate road and equipment accounts at the time the equipment is 
delivered to the carrier, and included in this account in the same 
manner as the cost of equipment purchased outright. When the par value 
of notes or other securities issued in payment, or in part payment, for 
such equipment is more (or less) than the actual cash value of the 
equipment at the time of the purchase, or of the proportion to which the 
securities are applicable, the difference between the par value of the 
securities and the actual cash value of the equipment, or of the 
proportion paid for by the securities, shall be charged (or credited) to 
the proper discount and premium accounts.
    Note C: Held for use, as referred to above, implies the ability of 
the carrier to substantiate within a reasonable period of time, by plan 
or policy, the probable future use which is to be made of the property.

[[Page 116]]

732 Improvements on leased property.
    (a) This account shall include the cost of improvements made by the 
lessee to property which is held under lease from others or through 
control of the company owning the property, where such improvements are 
used by the lessee in transportation service, and the lessee is not to 
be reimbursed by the lessor for such improvements. (See instruction 2-
18.)
    (b) The carrier's records shall be kept in such manner as to show 
the debits and credits to this account in accordance with the provisions 
for road and equipment.

    Note A: This account shall not include any itmes representing titles 
to securities.
    Note B: When the lessor company includes in account 731, ``Road and 
equipment property,'' the cost of improvements made by the lessee to 
property, leased by it from the lessor and settlement is not made at the 
time for the cost thereof, the lessee, pending settlement with the 
lessor, shall include the cost thereof in account 721, ``Investments and 
advances; Affiliated companies,'' or 722, ``Other investments and 
advances,'' as appropriate.
733 Accumulated depreciation; improvements on leased property.
    (a) This account shall be credited with amounts concurrently charged 
to operating expenses or other authorized accounts for depreciation 
accrued on improvements to leased property, the cost of which is 
included in account 732, ``Improvements on leased property.''
    (b) The service value of each unit of property retired (and also of 
each minor item, less than a unit, retired and not replaced) for which 
this accumulated depreciation account has been established shall be 
charged to this account.
    (c) Instructions for depreciation accounts, rates of depreciation, 
and records to be maintained, as contained in instruction 4 for owned 
property, shall also apply to improvements on leased property.
734 Accumulated amortization; improvements on leased property--defense 
projects.
    This account shall include the amounts of accumulated past 
provisions for amortization of improvements to leased property 
applicable to defense projects, the cost of which is included in account 
732, ``Improvements on leased property.'' This account shall be charged 
with the amount of the credit balance applicable to specific property at 
the time the property is retired. The accounting company shall maintain 
separate subaccounts for amortization of (1) road property and (2) 
equipment.
735 Accumulated depreciation; road and equipment property.
    (a) This account shall be credited with amounts concurrently charged 
to operating expenses or other authorized accounts to cover the loss in 
service value of depreciable road and equipment property. It shall also 
include adjustments which the Board may authorize the accounting company 
to make such as adjustments for past accruals of depreciation, and 
provision for material abandonment or other losses applicable to 
nondepreciable property.
    (b) The service value of each unit of depreciable property retired 
(and also of each minor item, less than a unit, retired and not 
replaced) shall be charged to this account. This account shall also be 
charged for amounts for losses applicable to nondepreciable property 
retired for which provision was previously made by approval of the 
Board, and any resultant adjustment of such provision shall be referred 
to the Board for consideration and decision.
    (c) Comprehensive instructions pertaining to depreciation accounts, 
rates of depreciation, and records to be maintained, are contained in 
instruction 4.
736 Accumulated amortization; road and equipment property--defense 
project.
    This account shall include the amount of accumulated past provisions 
for amortization of road and equipment defense projects, the cost of 
which is included in account 731, ``Road and equipment property.'' This 
account shall be charged with the amount of the credit balance 
applicable to specific property at the time the property is retired. The 
accounting company shall maintain separate subaccounts

[[Page 117]]

for amortization of (1) road property and (2) equipment.
737 Property used in other than carrier operations.
    This account shall include the accounting company's investment in 
property other than property assignable to accounts 731, ``Road and 
equipment property,'' and 732, ``Improvements on leased property,'' such 
as hotels, restaurants, powerplants, which are not operated by the 
accounting company or another carrier in connection with its 
transportation service.

                           Items of Investment

Coal and other mines.
Commercial power plants.
Hotels and restaurants.
Lands and buildings not used in transportation operations.
Lands and other property acquired and held in anticipation of future 
use.
Mineral and timber lands.
Rails and other track material leased to others.
Saw mills and other manufacturing plants not operated in connection with 
transportation service.
738 Accumulated depreciation; property used in other than carrier 
operations.
    This account shall be credited with amounts charged to income or 
other authorized accounts for depreciation accrued on property, the cost 
of which is included in account 737, ``Property used in other than 
carrier operations.'' When such property is destroyed, sold, or 
otherwise retired from service, this account shall be charged with the 
amount of the credit balance applicable to the property retired.

                           Intangible Property

739 Organization expenses.
    This account shall include all fees paid to governments for the 
privilege of incorporation, and office and other expenditures incident 
to organizing the corporation and putting it in readiness to do 
business; cost of preparing and distributing prospectuses; special 
counsel fees; cost of preparing and issuing certificates of stock; cost 
of procuring the necessary certificates from State authorities; and 
other like costs necessary and proper in organizing the enterprise.
    Note: Cost of soliciting for loans or for the sale of bonds or other 
evidences of indebtedness shall be charged to balance sheet account 743, 
``Other deferred debits.'' (See instruction 5-3.)

                    Other Assets and Deferred Debits

741 Other assets.
    This account shall include the estimated value of salvage 
recoverable from property retired when the recovery of the salvage is 
deferred for any reason. (See instruction 2-5 and 2-7.) This account 
shall also include the estimated realizable amount for other assets of 
doubtful value, collection of which within one year is not assured; also 
other deferred assets and miscellaneous assets not otherwise provided 
for in general balance sheet accounts. (See instruction 5-1.)
743 Other deferred debits.
    (a) This account shall include the amount of debit balances in 
suspense accounts that cannot be cleared and disposed of until 
additional information is received, such as frieght claims paid when 
found to be correct, but in advance of investigation with other 
carriers; unextinguished discount on short-term notes; unadjusted debit 
items not otherwise provided for and similar items the proper 
disposition of which is uncertain
    (b) This account shall also include the aggregate amount of the 
expenses incurred in connection with the issuance of each class of the 
carrier's outstanding long-term or equipment obligations, such as fees 
for listing long-term obligations on stock exchanges, legal and other 
fees, cost of tax stamps and similar items. (See account 14.) Separate 
subdivisions shall be maintained for each issue of such obligations. 
(See instruction 5-3.)

[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
744 Accumulated deferred income tax debits.
    This account shall include the amount of deferred noncurrent income 
tax debits and credits determined in accordance with Instruction 1-10 
when

[[Page 118]]

the balance is a net debit. A net credit balance shall be included in 
account 786, ``Accumulated deferred income tax credits''.

(49 U.S.C. 10321, 11145; 5 U.S.C. 553)

[47 FR 12350, Mar. 23, 1982]



Liabilities and Shareholders' Equity--Table of Contents



                           Current Liabilities

751 Loans and notes payable.
    (a) This account shall include the balances representing obligations 
outstanding in the form of loans and notes payable or other similar 
evidence (except interest coupons) of indebtedness payable on demand or 
within a time not exceeding one year from date of issue.
    (b) This account shall be kept in such form so as to show separately 
the amounts of notes payable within one year from date of issue that are 
secured by collateral.

    Note A: Loans and notes payable to affiliated companies which are 
subject to current settlement shall be included in account 757, 
``Payables to affiliated companies,'' and noncurrent obligations in 
account 769, ``Accounts payable; Affiliated companies.''
    Note B: This account shall not include obligations due within one 
year which are intended to be refinanced on a long-term basis. Long-term 
refinancing of short-term obligations means: (1) Replacement with long-
term obligations or equity securities, or (2) renewal, extension, or 
replacement with short-term obligations for an uninterrupted period 
extending beyond one year from the balance sheet date.
    The intention to refinance on a long-term basis shall be supported 
by the ability to refinance. Evidence of this ability includes either: 
(1) The actual issuance of an obligation, after the balance sheet date 
but before the balance sheet is issued, or (2) before the balance sheet 
is issued, the existence of a financing agreement which is long-term and 
based on terms readily determinable with no existing violations of its 
provisions, and with a lender which is financially capable of honoring 
the agreement.
752 Accounts payable; interline and other balances.
    This account shall include the net credit balances payable to other 
companies representing items such as interline freight, passenger, 
switching and baggage revenues, charges for equipment interchanged on a 
per diem or mileage basis, and charges for car repairs, loss and damage 
freight claims, and overcharge claims.
    Note: The amount to be entered in this account is not the net 
balance between this account and account 705, ``Accounts receivable; 
Interline and other balances.'' Net debit balances receivable from other 
companies shall be included in account 705.
753 Audited accounts and wages payable.
    This account shall include the amount of audited vouchers or 
accounts and audited payrolls unpaid on the date of the balance sheet. 
It shall include balances representing unclaimed wages and outstanding 
pay and time or discharge checks issued in payment of wages and all 
other unpaid vouchered items.
    Note: The amount of checks and drafts, which have been transmitted 
to payees and which remain unpaid at the close of the accounting period, 
shall be credited to account 701, ``Cash.''
754 Accounts payable; other.
    This account shall include outstanding drafts drawn by station 
agents, conductors' refund and extra-fare checks not presented for 
redemption, taxes collected from employees and others for the account of 
taxing agencies, and other items of the nature of demand liabilities not 
covered by accounts 751, 752, 753, 755, 756, and 757.

    Note A: The amount to be reported under this account is not the net 
balance between this account and account 707, ``Accounts receivable; 
Other.''
    Note B: The amount of checks and drafts, which have been transmitted 
to payees and which remain unpaid at the close of the accounting period, 
shall be credited to account 701, ``Cash.'' When the amount of such 
checks and drafts cannot be determined with absolute accuracy an 
estimate of the amount shall be used.
    Note C: Deposits and other items of affiliated companies subject to 
current settlement shall be included in account 757, ``Payables to 
affiliated companies.''
755 Interest payable.
    This account shall include the amount of matured and unpaid interest 
on funded debt, and other obligations of the accounting company for 
which provision has been made for current

[[Page 119]]

settlement. This account shall also include the amount of interest 
subject to current settlement accrued to the date of the balance sheet, 
but payable after that date, on obligations of the accounting company.
    Note: Interest payable on debt to affiliated companies, if subject 
to current settlement, shall be included in account 757, ``Payables to 
affiliated companies.'' Noncurrent interest shall be included in account 
769, ``Accounts payable; Affiliated companies.'' Interest payable to 
others which is not paid when it matures shall be included in account 
781. ``Interest in default,'' if not subject to current settlement. 
Where interest is in default, subsequent accruals shall be credited 
directly to account 781.
756 Dividends payable.
    This account shall include the amount of dividends payable on 
capital stock but unpaid, at the date of the balance sheet.
    Note: Dividends payable to affiliated companies shall be included in 
account 757, ``Payables to affiliated companies.''
757 Payables to affiliated companies.
    This account shall include amounts payable to affiliated companies 
which are subject to current settlement such as deposits, demand or time 
loans, notes payable, interest, dividends, miscellaneous bills, and 
similar items.
    Note: Payables to affiliated companies, representing net credit 
balances for items such as revenues, charges for equipment interchanged, 
car repairs and claims, shall not be included in this account but in 
account 752, ``Accounts payable; Interline and other balances.''
759 Accrued accounts payable.
    This account shall include estimates of unaudited items payable by 
the carrier to the date of the balance sheet, including those which are 
chargeable to revenue, expense, or income accounts. Among the items 
which should be included in this account are:

Rents payable.
Amounts payable to others for unreported interline traffic.
Amounts payable to others for use of facilities, including equipment, 
for which bills have not been rendered.
Amounts payable to others for services for which bills have not been 
rendered.
Estimated amounts payable within one year covering liability for claims 
for injuries to persons, loss and damage, and similar items.
Amounts payable (estimated if necessary) within one year pursuant to 
agreements with labor organizations or otherwise for employees vacations 
now earned.
760 Federal income taxes accrued.
    This account shall be credited with the amount accrued for Federal 
income taxes which has been concurrently charged to the appropriate 
income or other authorized accounts. Credits to this account that are 
based upon estimates shall be adjusted during the year so that this 
account may show, as nearly as practicable the approximate amount of the 
carrier's unpaid liability for such taxes. Payments of taxes for which 
accruals have been made shall be debited to this account.
761 State and other income taxes accrued.
    This account shall be credited with the amounts accrued for state 
and other income taxes which have been concurrently charged to the 
appropriate income or other authorized accounts. Credits to this account 
that are based upon estimates shall be adjusted during the year so that 
this account may show, as nearly as practicable, the approximate amount 
of the carrier's unpaid liability for such taxes. Payments of taxes for 
which accruals have been made shall be debited to this account.
761.5 Other taxes accrued.
    (a) This account shall be credited with the accruals of all taxes, 
other than income taxes, which have been concurrently charged to the 
appropriate income or other accounts for taxes. Such accruals may be 
based upon estimates, provided such estimates shall be adjusted during 
the year so that this account may show, as nearly as practicable, the 
approximate amount of the carrier's unpaid liability for such taxes. 
Payments of taxes for which accruals have been made shall be debited to 
this account.
    (b) The records supporting the entries in this account shall be kept 
to show separately by classes of taxes the amount of the tax accruals 
for the current year and adjustments of accruals for prior years.

[[Page 120]]

    Note: Amounts for prepayments of taxes shall be included in account 
711, ``Prepayments.''
762 Deferred income tax credits.
    This account shall include the current portion of deferred income 
tax charges and credits determined in accordance with Instruction 1-10 
when the balance is a net credit. A net debit balance shall be included 
in account 714, ``Deferred income tax debits''.

(49 U.S.C. 10321, 11145; 5 U.S.C. 553)

[47 FR 12350, Mar. 23, 1982]
763 Other current liabilities.
    There shall be included in this account the principal amount of 
unpresented bonds drawn for redemption through the operation of sinking 
and redemption fund agreements, also the principal amount of unpresented 
fund debt obligations, and receivers' and trustees' securities which 
have matured (for which provision has been made for current settlement), 
and other current liabilities not includible in the foregoing current 
liability accounts.
764 Equipment obligations and other long-term debt due within one year.
    This account shall include the total amount of bonds, equipment 
obligations, and other long-term debt, including obligations maturing 
serially or payable in installments which are due and payable within one 
year, and for which arrangements for long-term refinancing have not been 
made (See note B to account 751, ``Loans and notes payable'') or for 
which no sinking funds have been provided. This account shall be 
subdivided according to the different classes of debt.

                    Long-Term Debt Due After One Year

765 Funded debt unmatured.
    (a) This account shall include the total par value of unmatured debt 
(other than equipment obligations), maturing more than one year from the 
close of the accounting period, including obligations due within one 
year which are expected to be refinanced on a long-term basis (see note 
B to account 751, ``Loans and notes payable''), whether the securities 
were issued by the accounting company or the payment was assumed by the 
accounting company after being issued as the debt of other companies. 
(See account 764, ``Equipment obligations and other long-term debt due 
within one year.'')
    (b) The amounts included in this account shall be divided to show 
the par value of (1) certificates or other evidences of funded debt 
(pledged and unpledged) held in the company's treasury, by its agents or 
trustees, or otherwise subject to its control, including both those 
reacquired after actual issue and those nominally but never actually 
issued; and (2) certificates or other evidences of funded debt issued 
and actually outstanding, being those not held by the company, its 
agents or trustees, or subject to its control.
    (c) The amounts included herein shall be further divided so as to 
show the amount of each class of funded debt, as follows:
    (1) Mortgage bonds. Bonds secured by lien on physical property and 
not includible in the other subdivisions of this account.
    (2) Collateral trust bonds. Bonds and notes secured by a lien on 
securities or other negotiable paper; and stock trust certificates that 
are similar in character to collateral trust bonds.
    (3) Income bonds. Bonds which are a lien on a carrier's revenue 
alone, or bonds which, while being a lien on its property and 
franchises, can claim payment of interest only in case interest is 
earned.
    (4) Miscellaneous obligations. All funded obligations not provided 
for by the other subdivisions of this account, also notes, unsecured 
certificates of indebtedness, debenture bond, plain bonds, real estate 
mortgages executed or assumed and other similar obligations maturing 
more than one year from date of issue, but excluding liabilities for 
assessments for public improvements and those evidenced by conditional 
or deferred equipment purchase contracts for which provision is made in 
accounts 782, ``Other liabilities,'' and 766, ``Equipment obligations,'' 
respectively.
    (5) Receipts outstanding for funded debt. Receipts for payments on 
account of funded debt. When certificates are issued for such payments, 
the par value

[[Page 121]]

shall be included in the account covering the class of funded debt for 
which the certificates are issued.
    (d) Each of the above classes shall also be divided into subclasses 
according to differences in mortgage or other lien or security therefor, 
rate of interest, interest dates, or date of maturity. Parts of any 
issue agreeing in other characteristics but maturing serially may be 
treated as of the same subclass.
    (e) Records shall be maintained in such manner as to show (1) 
securities the issuance or assumption of which has been authorized by 
the Board under provisions of the Interstate Commerce Act, and similar 
securities issued or assumed prior to the effective date of such 
provisions of the Act, and (2) other obligations of a kind which may 
legally be issued or assumed without such authorization.

    Note A: Securities (other than equipment obligations) maturing one 
year or less from date of issue shall be included in accounts 757, 
``Payables to affiliated companies,'' 769, ``Accounts payable; 
Affiliated companies,'' or 751, ``Loans and notes payable,'' as 
appropriate, except that where an issue of securities maturing serially 
over a period of years contains short-term obligations such obligations 
may be included as funded debt. Mature funded debt shall be included in 
account 763, ``Other current liabilities,'' if provision has been made 
for current settlement. If no provision has been made for current 
settlement, matured funded debt shall be included in account 768, ``Debt 
in default,'' except that when the collection of matured funded debt of 
affiliated companies is not enforced by controlling companies, the 
principal amount (to the extent held by a controlling company) shall be 
included in account 769, ``Accounts payable; Affiliated companies.''
    Note B: See definitions 3, actually issued; 4, actually outstanding; 
25, nominally issued; and 26, nominally outstanding.
    Note C: Nonnegotiable notes having a maturity of more than one year 
after date of issue, held by affiliated companies, shall be included in 
account 769, ``Accounts payable; Affiliated companies.''
    Note D: Securities nominally issued or reacquired and held in the 
company's treasury, except securities held by trustees in sinking or 
other funds, shall be included in a subdivision of this account. In the 
general balance sheet statement the total unmatured funded debt included 
in this account shall be shown in the first short column. The amount 
nominally but not actually issued and the amount nominally outstanding 
shall be shown in the second short column, and in the long column shall 
be shown the amount actually outstanding.

[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
766 Equipment obligations.
    (a) This account shall include the par value of equipment securities 
and the principal amount of contractual obligations for the purchase of 
equipment, excluding principal or obligations maturing serially or 
payable in installments within one year from the close of the accounting 
period, and including obligations due within one year which are expected 
to be refinanced on a long-term basis (see account 764, ``Equipment 
obligations and other long-term debt due within one year''); for 
explanation of long-term refinancing, see note B to account 751, ``Loans 
and notes payable.''
    (b) The amounts included herein shall be divided as follows:
    (1) Principal amount of equipment securities including those 
maturing serially, issued or assumed by the accounting company or by 
receivers and trustees, which have been authorized by the Board under 
provisions of the Interstate Commerce Act and similar securities issued 
or assumed prior to the effective date of such provisions of the act.
    (2) Principal sums of obligations for equipment purchased under 
conditional or deferred payment contracts, which may be legally entered 
into or assumed by the accounting company or by receivers and trustees, 
without authorization by the Board.
766.5 Capitalized lease obligations.
    (a) Long-term leases which are clearly in substance installment 
purchases shall be capitalized. The liability under such leases which 
have been capitalized in fixed asset accounts shall be recorded in this 
account. (See instruction 2-20.)
    (b) This account shall be kept so as to show the liability under 
each lease obligation.

    Note A: The portion of the liability for long-term leases which is 
payable within 1 year of the close of the accounting period is 
includible in account 764, Equipment obligations and other long-term 
debt due within one year.

[[Page 122]]

    Note B: Leases which merely state the right to use property and a 
related obligation to pay specific rents over a definite future period 
shall not be considered to be assets and liabilities.

(49 U.S.C. 12, 20, 304, 913 and 1012)

[42 FR 56611, Oct. 27, 1977]
767 Receivers' and trustees' securities.
    When receivers or trustees acting under the orders of a court are in 
possession of the property of the company, and under the order of such 
court issue or assume evidences of indebtedness (other than equipment 
securities or obligations) the par value of such evidences shall be 
credited to this account.
    Note: The par value of equipment securities or the principal amount 
of obligations incurred for the purchase of equipment under conditional 
or deferred payment contracts shall be included in account 766, 
``Equipment obligations.''
768 Debt in default.
    This account shall include amounts transferred from other accounts 
representing matured funded securities or obligations, receivers' and 
trustees' securities, equipment obligations and short-term notes, when 
maturity dates of such obligations have not been extended

    Note A: The principle amount of matured funded debt of affiliated 
companies the collection of which is not enforced by the controlling 
company shall (to the extent of the principal amount held by the 
controlling company) be included in account 769, ``Accounts payable; 
Affiliated companies.''
    Note B: The principal amount unpresented funded debt obligations 
which have matured, and for which provision has been made for payment 
shall be included in account 763, ``Other current liabilities.''
769 Accounts payable; affiliated companies.
    This account shall include the par value of nonnegotiable notes 
issued to affiliated companies; also matured funded debt of affiliated 
companies held by controlling companies where there is no agreement for 
an extension as to time of payment and collection of the principal is 
not enforced; credit balances in open accounts with such companies other 
than credit balances classable as current liablilities, and interest 
accrued on notes, matured funded debt of affiliated companies and open 
accounts included in this account, when such interest is not subject to 
current settlements. The amounts included herein shall be divided as 
follows:
    (a) Notes, including not only nonnegotiable notes that run longer 
than a term of one year, but also such notes payable on demand or within 
one year from the date of issue when it is mutually agreed that the 
notes shall not be enforced as current assets by the holder.
    (b) Par value of matured funded debt of affiliated companies held by 
controlling companies where there is no agreement for an extension of 
time and collection is not enforced.
    (c) Open accounts not subject to current settlement.
    (d) Interest accrued on amounts included in this account when not 
subject to current settlement.

    Note A: Accounts with affiliated companies which are subject to 
current settlement shall be classed as current assets or current 
liabilities, as appropriate.
    Note B: No item shall be included in this account which is not known 
to be the property of an affiliated company.
    Note C: The term affiliated companies includes:
    1. Controlled companies, including companies solely controlled by 
the accounting company, and also companies jointly controlled by the 
accounting company and others under a joint arrangement. (See definition 
4.)
    2. Controlling companies, including both companies solely 
controlling the accounting company, and companies which jointly control 
the accounting company under a joint arrangement.
    3. Companies controlled by controlled companies.
    4. Companies controlled by controlling companies.
    By control (See definition 8) is meant the ability to determine the 
action of a corporation. For the purposes of this account, the following 
are to be considered forms of control:
    (a) Right through title to securities issued or assumed to exercise 
the major part of the voting power in the controlled corporation.
    (b) Right through agreement of some character or through some source 
other than title to securities, to name the majority of the board of 
directors, managers, or trustees of the controlled corporation.

[[Page 123]]

    (c) Right to foreclose a first lien upon all or a major part in 
value of the tangible property of the controlled corporation.
    (d) Right to secure control in consequence of advances made for 
construction of the operating property of the controlled corporation.
    (e) Right to control only in a specific respect the action of the 
controlled corporation.
    A leasehold interest in the property of a corporation is not to be 
classed as a form of control over the lessor corporation.
    Sole control is that which rests in one corporation.
    Joint control is that which rests in two or more corporations and 
which is held under a joint arrangement.
770.1 Unamortized debt discount.
    This account shall include the total of the net debit balances 
representing the excess of the discount over the premimium in connection 
with the issuance of each class of the carrier's outstanding long-term 
or equipment obligations. Separate subdivisions shall be maintained for 
each issue of such obligations. (See instruction 5-3.)

    Note A: Issue costs related to long-term debt (debt expense) shall 
be included in account 743, ``Other deferred debits.'' (See instruction 
5-3.)
    Note B: When long-term obligations are refinanced the balance of 
debt discount and expense pertaining to the old obligations shall be 
transferred to account 551, ``Miscellaneous income charges.''
770.2 Unamortized premium on debt.
    This account shall include the total of all credit balances 
representing the excess of the premium over the discount and expenses in 
connection with the issuance of each class of the carrier's outstanding 
long-term or equipment obligations. Separate subdivisions shall be 
maintained for each issue of obligations. (See instruction 5-3.)

                       Other Long-Term Liabilities

771 Accrued liability; pension and welfare.
    (a) This account shall include the credit balances accrued 
representing the estimated liability of the carrier for amounts provided 
by charges to operating expenses, including amounts contributed by 
employees, irrespective of whether carried in special funds or in 
general funds of the carrier, for pensions, accident and death benefits, 
savings, relief, hospital, or other provident purposes.
    (b) The carrier may use the ``full accrual basis'' to account for 
pension costs upon prior approval of the Board. Full accrual basis as 
used herein means recording in the accounts now and hereafter costs of 
employees pensions accrued, including credits for past services, upon 
the basis of actuarial computations, even though the sum has not been 
funded by payment to the trustees. Applications for such accounting 
shall show the method of computation, together with the carrier's 
proposal for recording in the accounts the related income tax credits to 
be realized in subsequent years.
    (c) This account shall be charged when payments are made to retired 
employees, or disbursements are made for the purposes for which 
liability was provided.
    (d) Separate subaccounts shall be maintained to show the amount 
provided for each liability and the nature of and amounts of debits and 
credits to the subaccounts.
772 Accrued liability; leased property.
    (a) This account shall be credited with amounts concurrently charged 
to operating expenses or other accounts to cover the accrued liability 
on leased road and equipment when settlement between the accounting 
carrier and the lessor is not made currently. The amounts recorded shall 
include unsettled rent, based on depreciation or other factors, and 
liability for property retired.
    (b) This account shall be divided to show the liability to (1) 
affiliated companies (See definition 4), and (2) others.
774 Accrued liability; casualty and other claims.
    (a) This account shall be credited with the amounts charged to 
operating expense to provide for estimated liabilities for claims for 
deaths of or injuries to employees and others, and for damages to 
property not owned or held under lease by the carrier; for claims for 
loss, destruction, damage, or delays to property entrusted to the 
carrier for transportation or storage; for revenue over charges, such as 
those covered by

[[Page 124]]

reparation claims; and for similar items. No credits shall be made to 
this account for amounts recoverable from insurance companies or others.
    (b) Separate subaccounts shall be maintained to show the amount 
provided for each liability and the nature of and amounts of debits and 
credits to the subaccounts.
    (c) If settlements for claims when audited are charged to this 
account, the balances for each year shall be kept separately until all 
items have been adjusted and cleared. If the settlements when audited 
are charged to the appropriate expense accounts, the balance in this 
account shall be adjusted through the expense accounts so as to reflect 
the probable liability at the close of each accounting period for claims 
which have been or may be filed for actuarial occurrences.
    (d) Estimates of amounts payable within one year covering liability 
for claims shall be transferred from this account to account 759, 
``Accrued accounts payable.''
775 Other accrued liabilities.
    (a) This account shall be credited with the amounts accrued for 
estimated liabilities or losses provided by charges to operating expense 
or income accounts which are not provided for in any of the preceding 
accrued liability accounts.
    (b) Separate subaccounts shall be maintained to show the amount 
provided for each liability and the nature of and amounts of debits and 
credits to the subaccounts.
    (c) Upon accomplishment of the purpose for which each accrued 
liability was provided in this account, any remaining balance in the 
applicable subaccount shall be cleared to the appropriate operating 
expense or other account. Prior Board approval shall be required for 
clearance of balances in accrued liability subaccounts which were 
originally established by authority of the Board.
    (d) Estimates of amounts payable within one year covering any 
liability included in this account shall be transferred to account 759, 
``Accrued accounts payable.''
781 Interest in default.
    This account shall include the amount of matured and unpaid interest 
(for which no provision has been made for current settlement) on all 
indebtedness issued or assumed by the accounting company except interest 
which is added to the principal of the debt on which incurred. Where 
interest is in default, subsequent accruals shall be credited to this 
account.
    Note: Interest matured and unpaid on debt to affiliated companies, 
if not subject to current settlement, shall be included in account 769, 
``Accounts payable; Affiliated companies.''
782 Other liabilities.
    This account shall include assessments for public improvements; 
retained amounts due governmental agencies for construction work; 
percentages due contractors to be paid upon completion of contracts; 
deposits for construction of side tracks to be refunded on basis of an 
agreed portion of the earnings from the traffic handled over the tracks 
and similar liabilities not payable within one year: This account shall 
also include other deferred and noncurrent liabilities not otherwise 
provided for in general balance sheet accounts. Assessments for public 
improvements and amounts due governmental agencies and others for 
payments to be made within one year, shall be included in account 763, 
``Other current liabilities,'' or other appropriate current liability 
account.
783 Deferred revenues--transfers from government authorities.
    This account shall include amounts representing the cost of 
acquisition, addition to, or improvement of depreciable operating 
property received, or receivable from Federal, state, or local 
authorities. Items to be included in this account shall be determined in 
accordance with instruction 1-15.
    An appropriate record shall be maintained of each asset associated 
with these transfers showing: (1) Original cost to carrier (or fair 
value if not purchased), (2) accumulated depreciation, and (3) estimated 
salvage value, if any.

[[Page 125]]

    This account shall be charged periodically, and account 503, 
``Railway Operating Revenues--Amortization of Deferred Transfers from 
Government Authorities,'' shall be credited with amounts equal to the 
depreciation costs of the assets to which they apply. When such assets 
are retired or otherwise disposed of, this account shall be charged, and 
account 503 concurrently credited with any remaining associated amounts. 
(See instruction 1-15.)

    Note A: This account shall not include government transfers in the 
form of, or designated for the purchase of land or other non-depreciable 
property. Transfers of this type are includible in account 795, ``Other 
Capital.''
    Note B: This account shall not include transfers from the Federal 
Government to either Amtrak or ConRail representing the cost of 
depreciable and non-depreciable operating property.

(49 U.S.C. 304, 320)

[43 FR 30558, July 17, 1978]

                            Deferred Credits

784 Other deferred credits.
    (a) This account shall include the amount of credit balances in 
suspense accounts that cannot be disposed of until services are 
performed or additional information is received, such as amounts 
received from sale of mileage tickets, to be disposed of as mileage is 
honored; amounts received from sales of excess baggage script, to be 
disposed of as coupons are honored; interchangeable mileage credential 
ticket redemption funds, amounts collected from the sale of damaged, 
unclaimed, and over freight held pending final disposition, unadjusted 
credit items not otherwise provided for; and similar items, the proper 
disposition of which is uncertain.
786 Accumulated deferred income tax credits.
    (a) This account shall be credited with the noncurrent portions of 
deferred income tax debits and credits when the balance is a net credit, 
as determined by Instruction 1-10. A net debit balance shall be included 
in account 744, ``Accumulated deferred income tax debits''.
    (b) This account shall be credited with the amount of investment tax 
credits utilized in the current year for income tax purposes but 
deferred for accounting purposes (see Instruction 1-10).
    (c) This account shall be concurrently debited with amounts credited 
to account 557, ``Provision for deferred taxes,'' representing 
amortization of amounts for investment tax credits deferred in prior 
accounting periods.
    (d) This account shall be maintained in such a manner as to show 
separately:
    (1) the unamortized balance of deferred income taxes and deferred 
investment tax credit separately as of the beginning and as of the end 
of each year (2) the entries that affected the account balance, and (3) 
the current year's net credits or charges applicable to timing 
differences and deferred investment tax credits.

    Note A: For definitions of income tax terminology see Definition 17. 
Account 557, ``Provision for deferred taxes'', and account 591, 
``Provision for deferred taxes--Extraordinary item,'' shall concurrently 
be charged (credited) with the net effect of material timing effects. 
Other related deferred income tax balance sheet accounts are:
Account 714, ``Deferred income tax debit.''
Account 744, ``Accumulated deferred income tax debits.''
Account 762, ``Deferred income tax credits.''

(49 U.S.C. 10321, 11145; 5 U.S.C. 553)

[47 FR 12350, Mar. 23, 1982, as amended at 67 FR 57533, Sept. 11, 2002]

                          Shareholders' Equity

791 Capital stock.
    (a) This account shall include the par value of stocks with par 
value; the stated value of no par stock having a stated value; and the 
cash value of the consideration received or the amount approved by the 
Board for no par stocks without stated value for all shares of capital 
stock or other form of proprietary interest in the accounting company 
which have been issued to bona fide purchasers and have not been 
reacquired and canceled, also shares of stock nominally issued.
    (b) This account also shall include amounts transferred from 
retained earnings for no par stock without stated value when approved by 
the Board.

[[Page 126]]

    (c) The amount of the consideration received from the sale of par 
value stock and no par stock having a stated value in excess of the 
amount credited to this account shall be credited to account 794, 
``Premiums and assessments on capital stock.''
    (d) When capital stock is retired or canceled, this account shall be 
charged with the amount at which such stock is carried in this account. 
In the case of no par stock without stated value, the amount to be 
charged shall be the proportion, applicable to the reacquired shares 
immediately prior to reacquisition, of the total book liability included 
herein of actually outstanding shares of the particular class and series 
of stock of which the reacquired shares are a part.
    (e) The amounts included in this account shall be recorded so as to 
show (1) par value of shares of par value stock; the stated value of 
shares of no par stock, and the amount paid in or approved by the Board 
for no par stock without stated value (pledged or unpledged), held in 
the company's treasury, by its agents or trustees, or otherwise subject 
to its control, including shares nominally but never actually issued and 
(2) par value of shares of par value stock, the stated value of shares 
of no par stock, and the amount paid in or approved by the Board for 
shares of no par stock without stated value, issued and actually 
outstanding, being the shares not held by the company, its agents, or 
trustees, or subject to its control.
    (f) The amounts recorded shall be further divided so as to show the 
amount of each class of stock issued, separated as between par value and 
no par value stock, as follows:
    (1) Common stock. Stocks which have no preference over other issues 
of stock in distribution of dividends or of assets.
    (2) Preferred stock. Stocks having preference over other issues of 
stock in distribution of dividends or of assets.
    (3) Debenture stock. Stock issued under a contract to pay a 
specified return at specified intervals.
    (4) Receipts outstanding for installments paid. Receipts for 
payments on account of subscriptions to capital stock.
    (g) When the subscriber has paid his subscription in full and is 
entitled to receive certificates representing the shares for which he 
has subscribed, the par value of stocks having par value, the stated 
value of no par stock, or the agreed purchase price or the price 
authorized by the Board for no par stock without stated value, as 
appropriate, shall be included in the division for the class for which 
the certificates are issued.
    (h) Each of the above classes shall also be divided into subclasses 
according to differences in dividend or interest rights, voting rights, 
or conditions under which the securities may be retired.

    Note A: When a general levy or assessment is made against the 
holders of capital stock requiring the payment of any sum in addition to 
the consideration agreed upon at the time of sale, the amount collected 
shall be credited to account 794, ``Premiums and assessments on capital 
stock.''
    Note B: When no par stock without stated value is issued in exchange 
for par stock, or no par stock with stated value, amounts included in 
account 794, ``Premiums and assessments on capital stock,'' for the 
retired stock, shall be transferred to this account, and any amounts 
icluded in the discount account for the retired stock shall be charged 
to account 795, ``Other capital''; Provided, however, That any excess 
over the amount of accumulated net gains applicable to the subclass 
exchanged included in account 795 shall be charged to account 616, 
``Other debits to retained earnings.''
    Note C: An appropriate record shall be maintained with respect to 
shares of capital stock showing the number of shares nominally issued, 
nominally outstanding, actually issued and actually outstanding.
    Note D: See definitions 3, actually issued; 4, actually outstanding; 
25, nominally issued; and 26, nominally outstanding.

[42 FR 35017, July 7, 1977, as amended at 67 FR 57533, Sept. 11, 2002]
792 Capital stock to be distributed.
    This account shall include the company's liability under agreements 
to exchange its capital stock for the outstanding securities of 
companies whose physical property has been acquired under such 
agreements, but whose securities have not yet been surrendered for 
exchange. This account shall also include stock dividends declared that

[[Page 127]]

remain undistributed at the end of an accounting period.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
793 Discount on capital stock.
    This account shall include the excess of the par or stated value 
recorded in account 791, ``Capital stock,'' (at the time of original 
sale of par value stock and no par stock with a stated value) plus 
accrued dividends, if any, over the cash value of the consideration 
received.
794 Premiums and assessments on capital stock.
    (a) This account shall include the excess of the actual cash vlaue 
of the consideration received (at the time of original sale of par value 
stock and no par stock with a stated value) over the par or stated value 
of the stock issued, plus accrued dividends, if any, and subsequent 
assessments against stockholders representing payments required in 
excess of par or stated value.
    (b) Separate subdivisions shall be maintained for premiums and for 
assessments on each class and series of stock.
    (c) When capital stock is retired and canceled, this account shall 
be charged with the amount of assessments and premiums originally 
recorded for the shares of stock retired and canceled.
795 Other capital.
    (a) This account shall include all other capital not classified as 
retained earnings. It shall include such items as the amount of consent 
dividends on the accounting company's capital stock; capital arising 
from donations by stockholders of capital stock of the company or other 
contribution to capital; amounts representing reduction of the par or 
recorded value of the accounting company's capital stock, including 
reductions arising in merger of a railroad and pooling of interest (see 
instruction 2-15(d)); capital from reorganization of the company (see 
instruction 2-16); and amounts of forfeited subscriptions to the 
accounting company's capital stock. This account shall also include 
gains from the acquisition, retirement, or resale of reacquired shares 
of the accounting company's capital stock; and forgiveness by 
stockholders as a contribution to capital of long-term debt owed to 
them.
    (b) This account shall be charged with amounts included herein when 
capitalized by stock dividends or otherwise with the approval of the 
Board, and losses from retirement or resale of reacquired shares up to 
an amount not in excess of credits included herein applicable to the 
reacquired shares; and may be charged with the amortization of discount 
on capital stock to the extent of credits herein for such stock.
    (c) This account shall be subdivided to show each source of other 
capital.
    (d) This account shall be subdivided to show the cumulative amounts 
representing the cost of nondepreciable operating property received from 
government authorities, in accordance with the provisions of instruction 
1-15.
    (e) This account shall also be subdivided to show the cumulative 
amounts representing the cost of depreciable and nondepreciable 
operating property received by Amtrak or Conrail from the Federal 
Government. (See instruction 1-15.)

(49 U.S.C. 304, 320)

[42 FR 35017, July 7, 1977, as amended at 43 FR 30558, July 17, 1978]
797 Retained earnings; appropriated.
    This account shall include the accumulated amount of retained 
earnings which has been appropriated and set aside according to 
provisions of mortgages, deeds of trust, reorganization plans, or other 
agreements requiring payments into capital funds, sinking funds, or 
other funds; and also appropriations for general contingencies, possible 
future losses (not in the category of liabilities actually incurred), 
and other corporate purposes. This account shall be subdivided by 
classes of appropriations showing the purpose for which each 
appropriation is made.
798 Retained earnings; unappropriated.
    (a) This account shall include the net balance (debit or credit) of 
the amounts included in accounts 601 to 623, inclusive. It shall not 
include transfers either to or from account 795,

[[Page 128]]

``Other capital,'' unless authorized upon application to the Board.
    (b) Any balance representing retained earnings not segregated at the 
date of the balance sheet shall be included in a subdivision of this 
account.
    (c) The balance of accounts 601 to 623, inclusive, shall be closed 
into this account at the end of each calendar year.
798.1 Net unrealized loss on noncurrent marketable securities.
    This account shall include the accumulated changes in account 724 to 
the extent that these changes represent a net unrealized loss (aggregate 
cost exceeds market value).
798.5 Treasury stock.
    (a) This account shall include in subdivisions for each class the 
reacquisition cost of capital stock which has been actually issued or 
assumed by the carrier, then reacquired, and is neither retired nor 
canceled, nor properly includable in sinking or other funds.
    (b) This account shall be maintained to reflect separately 
securities pledged and unpledged.
    (c) This account shall be shown on the balance sheet as a deduction 
in arriving at stockholders' equity.
    Note: The accounting for the reacquisition and resale of capital 
stock shall be in accordance with instruction 5-4, paragraphs (e) 
through (g).

                 Form of General Balance Sheet Statement

    The classified form of general balance sheet statement is designed 
to show the financial condition of the accounting company at any 
specified date.

                                 Assets
Current assets:
701.                               Cash.
702.                               Temporary cash investments.
703.                               Special deposits.
704.                               Loans and notes receivable.
705.                               Accounts receivable; Interline and
                                    other balances.
706.                               Accounts receivable; Customers.
707.                               Accounts receivable; Other.
708.                               Interest and dividends receivable.
708.5.                             Receivables from affiliated
                                    companies.
709.                               Accrued accounts receivable.
709.5.                             Allowance for uncollectible accounts.
                                    Net receivables.
710.                               Working funds.
711.                               Prepayments.
712.                               Material and supplies.
713.                               Other current assets.
714.                               Deferred income tax debits.
                                    Total current assets.
 
Special funds:
715.                               Sinking funds.
716.                               Capital funds.
717.                               Other funds.
                                    Total special funds.
 
Investments:
721.                               Investments and advances; affiliated
                                    companies.
                                    Undistributed earnings from certain
                                    investments in account 751.
721.5.                             Adjustments; investments and
                                    advances--affiliated companies.
                                    Net--investments and advances--
                                    affiliated companies.
722.                               Other investments and advances.
723.                               Adjustments; Other investments and
                                    advances.
724.                               Allowance for net unrealized loss on
                                    noncurrent marketable equity
                                    securities--Cr.
                                    Net--other investments and advances.
                                    Total investments.
 
Tangible property:
731.                               Road and equipment property.
735.                               Accumulated depreciation; Road and
                                    equipment property.
736.                               Accumulated amortization; Road and
                                    equipment property--Defense
                                    projects.
                                    Net road and equipment property.
732.                               Improvements on leased property.
733.                               Accumulated depreciation;
                                    Improvements on leased property.
734.                               Accumulated amortization;
                                    Improvements on leased property--
                                    Defense projects.
                                    Net improvements on leased property.
                                    Total carrier property.
737.                               Property used in other than carrier
                                    operations.
738.                               Accumulated depreciation; Property
                                    used in other than carrier
                                    operations.
                                    Net--property used in other than
                                    carrier operations.
                                    Total tangible property.
 
Intangible property:
739.                               Organization expenses.
 
Other assets and deferred debits:
741.                               Other assets.
743.                               Other deferred debits.
744.                               Accumulated deferred income tax
                                    debits.
                                    Total other assets and deferred
                                    debits.
                                    Total assets.
 
                  liabilities and shareholders' equity
 
Current liabilities:
751.                               Loans and notes payable.
752.                               Accounts payable; Interline and other
                                    balances.
753.                               Audited accounts and wages payable.
754.                               Accounts payable; Other.
755.                               Interest payable.
756.                               Dividends payable.
757.                               Payables to affiliated companies.
759.                               Accrued accounts payable.
760.                               Federal income taxes accrued.
761.                               State and other income taxes accrued.
761.5.                             Other taxes accrued.
762.                               Deferred income tax credits.
763.                               Other current liabilities.
764.                               Equipment obligations and other long-
                                    term debt due within one year.
                                    Total current liabilities.
 
Long-term debt due after one year: \1\
765.                               Funded debt unmatured.
766.                               Equipment obligations.
766.5.                             Capitalized lease obligations.
767.                               Receivers' and trustees' securities.
768.                               Debt in default.
769.                               Accounts payable; Affiliated
                                    companies.

[[Page 129]]

 
770.1                              Unamortized debt discount.
770.2                              Unamortized premium on debt.
                                    Total long-term debt due after one
                                    year.
 
Other long-term liabilities:
771.                               Accrued liability; Pension and
                                    welfare.
772.                               Accrued liability; Leased property.
774.                               Accrued liability; Casualty and other
                                    claims.
775.                               Other accrued liabilities.
781.                               Interest in default.
782.                               Other liabilities.
                                    Total other long-term liabilities.
 
Deferred credits:
783.                               Deferred revenues--transfers from
                                    government authorities.
784.                               Other deferred credits.
786.                               Accumulated deferred income tax
                                    credits.
                                    Total deferred credits.
 
Shareholders' equity:
 
 Capital stock:
791.                               Capital stock.
792.                               Liability for conversion of capital
                                    stock.
793.                               Discount on capital stock.
                                    Total capital stock.
 
 Additional capital:
794.                               Premiums and assessments on capital
                                    stock.
795.                               Other capital.
                                    Total additional capital.
 
Retained earnings:
797.                               Retained earnings; Appropriated.
798.                               Retained earnings; Unappropriated.
798.1                              Net unrealized loss on noncurrent
                                    marketable equity securities.
                                    Total retained earnings.
798.5                              Treasury stock.
                                    Total shareholders' equity.
                                    Total liabilities and shareholders'
                                    equity.
------------------------------------------------------------------------
 
 
 \1\ To be divided as to ``Total issued'' and ``Held by or for
  company.''


(49 U.S.C. 12, 20, 304, 913 and 1012)

[42 FR 35017, July 7, 1977, as amended at 42 FR 56611, Oct. 27, 1977; 43 
FR 30558, July 17, 1978]



CONVERSION TABLES--Table of Contents



Operating Expense Accounts.
Transportation Operating Revenue Accounts.
Income Accounts.
Retained Income Accounts.
General Balance Sheet Accounts.

                                  Operating Expense Accounts--Conversion Table
                                         [See footnotes at end of table]
----------------------------------------------------------------------------------------------------------------
 System of accounts effective prior to Jan 1, 1978            System of accounts effective Jan. 1, 1978
----------------------------------------------------------------------------------------------------------------
                                                                           Account No.\1\
               Account title                  No.  -------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
                                      Maintenance of Roadway and Structures
----------------------------------------------------------------------------------------------------------------
Superintendence...........................     201    11-13-02    21-13-02  ............    41-13-02    61-13-02
                                            ......    11-13-03    21-13-03  ............    41-13-03    61-13-03
                                            ......    11-13-04    21-13-04  ............    41-13-04    61-13-04
                                            ......    11-13-05    21-13-05  ............    41-13-05    61-13-05
                                            ......    11-13-06    21-13-06  ............    41-13-06    61-13-06
Roadway maintenance.......................     202    11-11-10    21-11-10   39/40-11-10    41-11-10    61-11-10
                                            ......    11-12-10    21-12-10   39/40-12-10    41-12-10    61-12-10
                                            ......    11-11-11    21-11-48   39/40-11-48    41-11-48    61-11-48
                                            ......    11-12-11    21-12-11   39/40-12-11    41-12-11    61-12-48
Tunnels and subways.......................     206    11-11-11    21-11-11   39/40-11-11    41-11-11    61-11-11
                                            ......    11-12-11    21-12-11   39/40-12-11    41-12-11    61-12-11
                                            ......    11-11-48    21-11-48   39/40-11-48    41-12-48    61-12-48
                                            ......    11-12-48    21-12-48   39/40-12-48    41-12-48    61-12-48
Bridges, trestles and culverts............     208    11-11-12    21-11-12   39/40-11-12    41-11-12    61-11-12
                                            ......     1-12-12    21-12-12   39/40-12-12    41-12-12    61-12-12
                                            ......    11-11-48    21-11-48   39/40-11-48    41-11-48    61-11-48
                                            ......    11-12-48    21-12-48   39/40-12-48    41-12-48    61-12-48
Elevated structures.......................     210    11-11-12    21-11-12   39/40-11-12    41-11-12    61-11-12
                                            ......    11-12-12    21-12-12   39/40-12-12    41-12-12    61-12-12
                                            ......    11-11-48    21-11-48   39/40-11-48    41-11-48    61-11-48
                                            ......    11-12-48    21-12-48   39/40-12-48    41-12-48    61-12-48
Ties......................................     212  ..........    21-11-13  ............  ..........  ..........
                                            ......  ..........    21-12-13  ............  ..........  ..........
                                            ......  ..........    21-11-48  ............  ..........  ..........
                                            ......  ..........    21-12-48  ............  ..........  ..........
Rails.....................................     214  ..........    21-11-14  ............  ..........  ..........
                                            ......  ..........    21-12-14  ............  ..........  ..........
                                            ......  ..........    21-11-48  ............  ..........  ..........
                                            ......  ..........    21-12-48  ............  ..........  ..........
Other track material......................     216  ..........    21-11-15  ............  ..........  ..........
                                            ......  ..........    21-12-15  ............  ..........  ..........
                                            ......  ..........    21-11-48  ............  ..........  ..........
                                            ......  ..........    21-12-48  ............  ..........  ..........
Ballast...................................     218  ..........    21-11-16  ............  ..........  ..........

[[Page 130]]

 
                                            ......  ..........    21-12-16  ............  ..........  ..........
                                            ......  ..........    21-11-48  ............  ..........  ..........
                                            ......  ..........    21-12-48  ............  ..........  ..........
Track laying and surfacing................     220    11-11-17    21-11-17   39/40-11-17    41-11-17    61-11-17
                                            ......    11-12-17    21-12-17   39/40-12-17    41-12-17    61-12-17
                                            ......    11-11-48    21-11-48   39/40-11-48    41-11-48    61-11-48
                                            ......    11-12-48    21-12-48   39/40-12-48    41-12-48    61-12-48
Fences, snowsheds and signs...............     221    11-13-28    21-13-28   39/40-13-28    41-13-28    61-13-28
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Station and office buildings..............     227    11-13-23    21-13-23   39/40-13-23    41-13-23    61-13-23
                                            ......    11-13-33    21-13-33   39/40-13-33    41-13-33    61-13-33
                                            ......    11-13-35    21-13-35   39/40-13-35    41-13-35    61-13-35
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Roadway buildings.........................     229    11-13-28    21-13-28   39/40-13-28    41-13-28    61-13-28
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Water stations............................     231    11-13-27    21-13-27   39/40-13-27    41-13-27    61-13-27
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Fuel stations.............................     233    11-13-27    21-13-27   39/40-13-27    41-13-27    61-13-27
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Shops and enginehouses....................     235    11-13-24    21-13-24   39/40-13-24    41-13-24    61-13-24
                                            ......    11-13-25    21-13-25   39/40-13-25    41-13-25    61-13-25
                                            ......    11-13-26    21-13-26   39/40-13-26    41-13-26    61-13-26
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Grain elevators...........................     237    11-13-35    21-13-35   39/40-13-35    41-13-35    61-13-35
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Storage warehouses........................     239    11-13-28    21-13-28   39/40-13-28    41-13-28    61-13-28
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Wharves and docks.........................     241    11-13-32    21-13-32   39/40-13-32    41-13-32    61-13-32
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Coal and ore wharves......................     243    11-13-29    21-13-29   39/40-13-29    41-13-29    61-13-29
                                            ......    11-13-30    21-13-30   39/40-13-30    41-13-30    61-13-30
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
TOFC/COFC terminals.......................     244    11-13-31    21-13-31   39/40-13-31    41-13-31    61-13-31
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Communication systems.....................     247    11-13-20    21-13-20   39/40-13-20    41-13-20    61-13-20
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Signals and interlockers..................     249    11-11-19    21-11-19   39/40-11-19    41-11-19    61-11-19
                                            ......    11-12-48    21-12-48   39/40-12-48    41-12-18    61-12-18
                                            ......    11-11-48    21-11-48   39/40-11-48    41-11-48    61-11-48
                                            ......    11-12-48    21-12-48   39/40-12-48    41-12-48    61-12-48
Power plants..............................     253    11-13-21    21-13-21   39/40-13-21    41-13-21    61-13-21
                                            ......    11-13-24    21-13-24   39/40-13-24    41-13-24    61-13-24
                                            ......    11-13-28    21-13-25   39/40-13-25    41-13-25    61-13-25
                                            ......    11-13-26    21-13-26   39/40-13-26    41-13-26    61-13-26
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Power transmission systems................     257    11-13-21    21-13-21   39/40-13-21    41-13-21    61-13-21
                                            ......    11-13-24    21-13-24   39/40-13-24    41-13-24    61-13-24
                                            ......    11-13-25    21-13-25   39/40-13-25    41-13-25    61-13-25
                                            ......    11-13-26    21-13-26   39/40-13-26    41-13-26    61-13-26
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Miscellaneous structures..................     265    11-13-28    21-13-28   39/40-13-28    41-13-28    61-13-28
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Roadway property; depreciation............     266  ..........  ..........  ............  ..........    62-11-00
                                            ......  ..........  ..........  ............  ..........    62-12-00
                                            ......  ..........  ..........  ............  ..........    62-13-00
Retirements; road.........................     267  ..........  ..........  ............  ..........  \2\ 61-11-
                                                                                                              99
                                            ......  ..........  ..........  ............  ..........    61-12-99
                                            ......  ..........  ..........  ............  ..........    61-13-99
Roadway machines..........................     269    11-13-36    21-13-36   39/40-13-36    41-13-36    61-13-36
                                            ......    11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Dismantling retired road property.........     270    11-11-39    21-11-39  ............    41-11-39    61-11-39
                                            ......    11-12-39    21-12-39  ............    41-12-39    61-12-39
                                            ......    11-13-39    21-13-39  ............    41-13-39    61-13-39
Small tools and supplies..................     271    11-13-37    21-13-37   39/40-13-37    41-13-37    61-13-37
Removing snow, ice and sand...............     272    11-13-38    21-13-38   39/40-13-38    41-13-38    61-13-38
Public improvements; maintenance..........     273    11-11-22    21-11-22   39/40-11-22    41-11-22    61-11-22
                                            ......    11-12-22    21-12-22   39/40-12-22    41-12-22    61-12-22

[[Page 131]]

 
Injuries to persons.......................     274    11-11-99  ..........  ............  ..........    61-11-99
                                            ......    11-12-99  ..........  ............  ..........    61-12-99
                                            ......    11-13-99  ..........  ............  ..........    61-13-99
                                            ......    11-61-92    21-61-92      41-61-92  ..........    61-61-92
                                            ......  ..........  ..........  ............  ..........    52-11-00
                                            ......  ..........  ..........  ............  ..........    52-12-00
                                            ......  ..........  ..........  ............  ..........    52-13-00
Insurance.................................     275  ..........  ..........  ............  ..........    53-11-00
                                            ......  ..........  ..........  ............  ..........    53-12-00
                                            ......  ..........  ..........  ............  ..........    53-13-00
Stationery and printing...................     276  ..........    21-11-xx  ............  \2\ 41-11-  ..........
                                                                                                  xx
                                            ......  ..........    21-12-xx  ............    41-12-xx  ..........
                                            ......  ..........    21-13-xx  ............    41-13-xx  ..........
Employees health and welfare benefits.....     277    12-11-00  ..........  ............  ..........  ..........
                                            ......    12-12-00  ..........  ............  ..........  ..........
                                            ......    12-13-00  ..........  ............  ..........  ..........
Maintaining joint tracks, yards and other      278  ..........  ..........      37-11-00  ..........  ..........
 facilities--Dr...........................
                                            ......  ..........  ..........      37-12-00  ..........  ..........
                                            ......  ..........  ..........      37-13-00  ..........  ..........
Maintaining joint tracks, yards and other      279  ..........  ..........      38-11-00  ..........  ..........
 facilities--Cr...........................
                                            ......  ..........  ..........      38-12-00  ..........  ..........
                                            ......  ..........    38-13-00  ............  ..........  ..........
Right-of-way expenses.....................     281    11-11-99    21-11-99  ............    41-11-99    61-11-99
                                            ......    11-12-99    21-12-99  ............    41-12-99    61-12-99
                                            ......    11-13-99    21-13-99  ............    41-13-99    61-13-99
Other expenses............................     282    11-11-99    21-11-99  ............    41-11-99    61-11-99
                                            ......    11-12-99    21-12-99  ............    41-12-99    61-12-99
                                            ......    11-13-99    21-13-99  ............    41-13-99    61-13-99
----------------------------------------------------------------------------------------------------------------
                                            Maintenance of Equipment
----------------------------------------------------------------------------------------------------------------
Superintendence...........................     301    11-21-01    21-12-01  ............    41-21-01    61-21-01
                                            ......    11-22-01    21-22-01  ............    41-22-01    61-22-01
                                            ......    11-23-01    21-23-01  ............    41-23-01    61-23-01
Shop machinery............................     302    11-21-40    21-21-40   39/40-21-40    41-21-40    61-21-40
                                            ......    11-22-40    21-22-40   39/40-22-40    41-22-40    61-22-40
                                            ......    11-23-40    21-22-40   39/40-23-40    41-23-40    61-23-40
Power plant machinery.....................     304    11-13-21    21-13-21   39/40-13-21    41-13-21    61-13-21
                                            ......    11-13-28    21-13-28   39/40-13-28    41-13-28    61-13-28
Shop and power plant machinery;                305  ..........  ..........  ............  ..........    62-13-00
 depreciation.............................
                                            ......  ..........  ..........  ............  ..........    62-21-00
                                            ......  ..........  ..........  ............  ..........    62-22-00
                                            ......  ..........  ..........  ............  ..........    62-23-00
Dismantling retired shop and power plant       306    11-13-39    21-13-39  ............    41-13-39    61-13-39
 machinery................................
                                            ......    11-21-39    21-21-39  ............    41-21-39    61-21-39
                                            ......    11-22-39    21-22-39  ............    41-22-39    61-22-39
                                            ......    11-23-39    21-23-39  ............    41-23-39    61-23-39
Locomotive repairs........................     311    11-21-41    21-21-41   39/40-21-41    41-21-41    61-21-41
                                            ......    11-21-48    21-21-48   39/40-21-48    41-21-48    61-21-48
                                            ......    11-31-62    21-31-62  ............    41-31-62    61-31-62
Freight-train cars; repairs...............     314    11-22-42    21-22-42   39/40-22-42    41-22-42    61-22-42
                                            ......    11-22-48    21-22-48   39/40-22-48    41-22-48    61-22-48
                                            ......    11-31-62    21-31-62  ............    41-31-62    61-31-62
Passenger-train cars; repairs.............     317    11-25-45    21-25-45   39/40-25-45    41-25-45    61-25-45
                                            ......    11-25-48    21-25-48   39/40-25-48    41-25-48    61-25-48
Highway revenue equipment; repairs........     318    11-23-43    21-23-43   39/40-23-43    41-23-43    61-23-43
                                            ......    11-23-48    21-43-48   39/40-23-48    41-23-48    61-23-48
Floating equipment; repairs...............     323    11-23-44    21-23-44   39/40-23-44    41-23-44    61-23-44
                                            ......    11-23-48    21-23-48   30/40-23-48    41-23-48    61-23-48
Work equipment; repairs...................     326    11-23-47    21-23-47   39/40-23-47    41-23-47    61-23-47
                                            ......    11-23-48    21-23-48   39/40-23-48    41-23-48    61-23-48
Miscellaneous equipment; repairs..........     328    11-23-47    21-23-47   39/40-23-47    41-23-47    61-23-47
                                            ......    11-23-48    21-23-48   39/40-23-48    41-23-48    61-23-48
Dismantling retired equipment.............     329    11-21-39    21-21-39  ............    41-21-39    61-21-39

[[Page 132]]

 
                                            ......    11-22-39    21-22-39  ............    41-22-39    61-22-39
                                            ......    11-23-39    21-23-39  ............    41-23-39    61-23-39
Retirements; equipment....................     330  ..........  ..........  ............  ..........    61-29-99
                                            ......  ..........  ..........  ............  ..........    61-22-99
                                            ......  ..........  ..........  ............  ..........    61-23-99
Equipment; depreciation...................     331  ..........  ..........  ............  ..........    62-21-00
                                            ......  ..........  ..........  ............  ..........    62-22-00
                                            ......  ..........  ..........  ............  ..........    62-23-00
Injuries to persons.......................     332    11-21-99  ..........  ............  ..........    61-21-99
                                            ......    11-22-99  ..........  ............  ..........    61-22-99
                                            ......    11-23-99  ..........  ............  ..........    61-23-99
                                            ......    11-61-99    21-61-92      41-61-92  ..........    61-61-92
                                            ......  ..........  ..........  ............  ..........    52-21-00
                                            ......  ..........  ..........  ............  ..........    52-22-00
                                            ......  ..........  ..........  ............  ..........    52-23-00
Insurance.................................     333  ..........  ..........  ............  ..........    53-21-00
                                            ......  ..........  ..........  ............  ..........    53-22-00
                                            ......  ..........  ..........  ............  ..........    53-23-00
Stationery and printing...................     334  ..........  \2\ 21-21-  ............  \2\ 41-21-  ..........
                                                                        xx                        xx
                                            ......  ..........    21-22-xx  ............    41-22-xx  ..........
                                            ......  ..........    21-23-xx  ............    41-23-xx  ..........
Employees health and welfare benefits.....     335    12-21-00  ..........  ............  ..........  ..........
                                            ......    12-22-00  ..........  ............  ..........  ..........
                                            ......    12-23-00  ..........  ............  ..........  ..........
Joint maintenance of equipment expenses--      336  ..........  ..........      37-21-00  ..........  ..........
 Dr.......................................
                                            ......  ..........  ..........      37-22-00  ..........  ..........
                                            ......  ..........  ..........      37-23-00  ..........  ..........
Joint maintenance of equipment expenses--      337  ..........  ..........      38-21-00  ..........  ..........
 Cr.......................................
                                            ......  ..........  ..........      38-22-00  ..........  ..........
                                            ......  ..........  ..........      38-23-00  ..........  ..........
Other expenses............................     339    11-21-99    21-21-99  ............    41-21-99    61-21-99
                                            ......    11-22-99    21-22-99  ............    41-22-99    61-22-99
                                            ......    11-23-99    21-23-99  ............    41-23-99    61-23-99
Various...................................  ......    11-23-46    21-23-46   39/40-23-46    41-23-46    61-23-46
----------------------------------------------------------------------------------------------------------------
                                             Traffic Expense Account
----------------------------------------------------------------------------------------------------------------
Superintendence...........................     351    11-61-01    21-61-01  ............    41-61-01    61-61-01
Outside agencies..........................     352    11-61-88    21-61-88  ............    41-61-88    61-61-88
                                            ......    11-61-89    21-61-89  ............    41-61-89    61-61-89
Advertising...............................     353    11-61-93    21-61-93  ............    41-61-93    61-61-93
Traffic associations......................     354    11-61-93    21-61-93  ............    41-61-93    61-61-93
Fast freight lines........................     355    11-61-99    21-61-99  ............    41-61-99    61-61-99
Industrial and immigration bureaus........     356    11-61-90    21-61-90  ............    41-61-90    61-61-90
Insurance.................................     357  ..........  ..........  ............  ..........    53-61-00
Stationery and printing...................     358  ..........  \2\ 21-61-  ............  \2\ 41-61-  ..........
                                                                        xx                        xx
Employees health and welfare benefits.....     359    12-61-00  ..........  ............  ..........  ..........
Other expenses............................     360    11-61-99    21-61-99  ............    41-61-99    61-61-99
----------------------------------------------------------------------------------------------------------------
                                         Transportation Expense Accounts
----------------------------------------------------------------------------------------------------------------
Superintendence...........................     371    11-31-01    21-31-01  ............    41-31-01    61-31-01
                                            ......    11-32-01    21-32-01  ............    41-32-01    61-32-01
                                            ......    11-34-01    21-34-01  ............    41-34-01    61-34-01
                                            ......    11-35-01    21-35-01  ............    41-35-01    61-35-01
Dispatching trains........................     372    11-31-58    21-31-58  ............    41-31-58    61-31-58
Station employees.........................     373    11-33-71  ..........  ............  ..........  ..........
                                            ......    11-35-76  ..........  ............  ..........  ..........
                                            ......    11-35-77  ..........  ............  ..........  ..........
Weighing, inspection and demurrage bureaus     374  ..........  ..........  ............    41-31-99  ..........
Coal and ore wharves......................     375    11-34-74    21-34-74  ............    41-34-74    61-34-74
Station supplies and expenses.............     376  ..........    21-33-71  ............    41-33-71  ..........
                                            ......  ..........    21-35-76  ............    41-35-76    61-35-76
                                            ......  ..........    21-35-77  ............    41-35-77    61-35-77
Yardmasters and yard clerks...............     377    11-32-65  ..........  ............  ..........  ..........
                                            ......    11-32-66  ..........  ............  ..........  ..........
Yard conductors and brakemen..............     378    11-32-64  ..........  ............  ..........  ..........
Yard switch and signal tenders............     379    11-32-59  ..........  ............  ..........  ..........

[[Page 133]]

 
Yard enginemen............................     380    11-32-64  ..........  ............  ..........  ..........
Yard switching fuel.......................     382    11-32-67    21-32-67  ............    41-32-67    61-32-67
Yard switching power produced.............     383    11-32-68    21-32-68  ............    41-32-68    61-32-68
Yard switching power purchased............     384  ..........  ..........  ............    41-32-68  ..........
Servicing yard locomotives................     388    11-32-69    21-32-69  ............    41-32-69    61-32-69
Yard supplies and expenses................     389  ..........    21-32-59  ............    41-32-59    61-32-59
                                            ......  ..........    21-32-64  ............    41-32-64    61-32-64
                                            ......  ..........    21-32-65  ............    41-32-65    61-32-65
                                            ......  ..........    21-32-66  ............    41-32-66    61-32-66
Operating joint yards and terminals--Dr...     390  ..........  ..........      37-32-00  ..........  ..........
Operating joint yards and terminals--Cr...     391  ..........  ..........      38-32-00  ..........  ..........
Train enginemen...........................     392    11-31-56  ..........  ............  ..........  ..........
Train fuel................................     394    11-31-67    21-31-67  ............    41-31-67    61-31-67
Train power produced......................     395    11-31-68    21-31-68  ............    41-31-68    61-31-68
Train power purchased.....................     396  ..........  ..........  ............    41-31-68  ..........
Servicing train locomotives...............     400    11-31-69    21-31-69  ............    41-31-69    61-31-69
Trainmen..................................     401    11-31-57  ..........  ............  ..........  ..........
Train supplies and expenses...............     402  ..........    21-31-56  ............    41-31-56    61-31-56
                                                                  21-31-57  ............    41-31-57    61-31-57
                                            ......    11-31-62    21-31-62  ............    41-31-62    61-31-62
                                            ......    11-33-70    21-33-70  ............    41-33-70  ..........
                                            ......    11-33-71    21-33-71  ............    41-33-71  ..........
                                            ......    11-33-72    21-33-72  ............    41-33-72  ..........
                                            ......    11-34-75    21-34-75  ............    41-34-75    61-34-75
                                            ......    11-31-99    21-31-99  ............    41-31-99    61-31-99
Operating sleeping cars...................     403    11-41-01    21-41-01  ............    41-41-01    61-41-01
                                            ......    11-41-57    21-41-57  ............    41-41-57    61-41-57
                                            ......    11-45-76    21-45-76  ............    41-45-76    61-45-76
                                            ......    11-41-99    21-41-99  ............    41-41-99    61-41-99
Signal and interlocker operation..........     404    11-31-59    21-31-59  ............    41-31-59    61-31-59
Crossing protection.......................     405    11-31-61    21-31-61  ............    41-31-61    61-31-61
Drawbridge operations.....................     406    11-31-60    21-31-60  ............    41-31-60    61-31-60
Communication system operation............     407    11-35-77    21-35-77  ............    41-35-77    61-35-77
Operating floating equipment..............     408    11-34-01    21-34-01  ............    41-34-01    61-34-01
                                            ......    11-34-73    21-34-73  ............    41-34-73    61-34-73
                                            ......    11-34-74    21-34-74  ............    41-34-74    61-34-74
Employees health and welfare benefits.....     409    12-31-00  ..........  ............  ..........  ..........
                                            ......    12-32-00  ..........  ............  ..........  ..........
                                            ......    12-33-00  ..........  ............  ..........  ..........
                                            ......    12-34-00  ..........  ............  ..........  ..........
                                            ......    12-35-00  ..........  ............  ..........  ..........
Stationery and printing...................     410  ..........  \2\ 21-31-  ............  \2\ 41-31-  ..........
                                                                        xx                        xx
                                            ......    21-32-xx  ..........      41-32-xx  ..........  ..........
                                            ......    21-34-xx  ..........      41-34-xx  ..........  ..........
                                            ......    21-35-xx  ..........      41-35-xx  ..........  ..........
Other expenses............................     411    11-31-99    21-31-99  ............    41-31-99    61-31-99
                                            ......    11-32-99    21-32-99  ............    41-32-99    61-32-99
                                            ......    11-34-99    21-34-99  ............    41-34-99    61-34-99
                                            ......    11-35-99    21-35-99  ............    41-35-99    61-35-99
Operating joint tracks and facilities--Dr.     412  ..........  ..........      37-31-00  ..........  ..........
                                            ......  ..........    37-32-00  ............  ..........  ..........
                                            ......  ..........    37-34-00  ............  ..........  ..........
                                            ......  ..........    37-35-00  ............  ..........  ..........
Operating joint tracks and facilities--Cr.     413  ..........  ..........      38-31-00  ..........  ..........
                                            ......  ..........  ..........      38-32-00  ..........  ..........
                                            ......  ..........  ..........      38-34-00  ..........  ..........
                                            ......  ..........  ..........      38-35-00  ..........  ..........
Insurance.................................     414  ..........  ..........  ............  ..........    53-31-00
                                            ......  ..........  ..........  ............  ..........    53-32-00
                                            ......  ..........  ..........  ............  ..........    53-34-00
                                            ......  ..........  ..........  ............  ..........    53-35-00
Clearing wrecks...........................     415    11-31-63    21-31-63  ............    41-31-63    61-31-63
                                            ......    11-32-63    21-32-63  ............    41-32-63    61-32-63
Damage to property........................     416  ..........  ..........  ............  ..........    52-31-00
                                            ......  ..........  ..........  ............  ..........    52-32-00
                                            ......  ..........  ..........  ............  ..........    52-34-00
                                            ......  ..........  ..........  ............  ..........    52-35-00

[[Page 134]]

 
Damage to livestock on right-of-way.......     417  ..........  ..........  ............  ..........    52-31-00
Loss and damage; Freight..................     418  ..........  ..........  ............  ..........    51-31-00
                                            ......  ..........  ..........  ............  ..........    51-32-00
                                            ......  ..........  ..........  ............  ..........    51-33-00
                                            ......  ..........  ..........  ............  ..........    51-34-00
                                            ......    11-35-78    21-35-78  ............    41-35-78    61-35-78
Loss and damage; Baggage..................     419  ..........  ..........  ............  ..........    51-31-00
                                            ......  ..........  ..........  ............  ..........    51-32-00
                                            ......  ..........  ..........  ............  ..........    51-33-00
                                            ......  ..........  ..........  ............  ..........    51-34-00
                                            ......    11-35-78    21-35-78  ............    41-35-78    61-35-78
Injuries to persons.......................     420    11-31-99  ..........  ............  ..........    61-61-92
                                            ......    11-32-99  ..........  ............  ..........    61-31-99
                                            ......    11-34-99  ..........  ............  ..........    61-32-99
                                            ......    11-35-99  ..........  ............  ..........    61-34-99
                                            ......    11-61-92    21-61-92      41-61-92  ..........    61-35-99
                                            ......  ..........  ..........  ............  ..........    52-13-00
                                            ......  ..........  ..........  ............  ..........    52-32-00
                                            ......  ..........  ..........  ............  ..........    52-34-00
                                            ......  ..........  ..........  ............  ..........    52-35-00
                                            ......    11-35-78    21-35-78  ............    41-35-78    61-35-78
TOFC/COFC terminals.......................     421    11-34-73    21-34-73  ............    41-34-73    61-34-73
                                            ......    11-34-74    21-34-74  ............    41-34-74    61-34-74
                                            ......    11-34-75    21-34-75  ............    41-34-75    61-34-75
Other highway transportation..............     422    11-34-73    21-34-73  ............    41-34-73    61-34-73
                                            ......    11-34-74    21-34-74  ............    41-34-74    61-34-74
                                            ......    11-34-75    21-34-75  ............    41-34-75    61-34-75
----------------------------------------------------------------------------------------------------------------
                                        Miscellaneous Operations Expense
----------------------------------------------------------------------------------------------------------------
Dining and buffet service.................     441    11-41-01    21-41-01  ............    41-41-01    61-41-01
                                            ......    11-41-57    21-41-57  ............    41-41-57    61-41-57
                                            ......    11-41-99    21-41-99  ............    41-41-99    61-41-99
Hotels and restaurants....................     442    11-34-99    21-34-99  ............    41-34-99    61-34-99
Grain elevators...........................     443    11-34-01    21-34-01  ............    41-34-01    61-34-01
                                            ......    11-34-74    21-34-74  ............    41-34-74    61-34-74
                                            ......    11-34-75    21-34-75  ............    41-34-75    61-34-75
Producing power sold......................     445    11-31-68    21-31-68  ............    41-31-68    61-31-68
                                            ......    11-32-68    21-32-68  ............    41-32-68    61-32-68
Other miscellaneous operations............     446    11-34-99    21-34-99  ............    41-34-99    61-34-99
Operating joint miscellaneous facilities--     447  ..........  ..........      37-34-00  ..........  ..........
 Dr.......................................
                                            ......  ..........  ..........      37-35-00  ..........  ..........
Operating joint miscellaneous facilities--     448  ..........  ..........      38-34-00  ..........  ..........
 Cr.......................................
                                            ......  ..........  ..........      38-35-00  ..........  ..........
Employees Health and Welfare Benefits.....     449    12-34-00  ..........  ............  ..........  ..........
----------------------------------------------------------------------------------------------------------------
                                           General Operating Expenses
----------------------------------------------------------------------------------------------------------------
Salaries and expenses of general officers.     451    11-61-01    21-61-01  ............    41-61-01    61-61-01
                                            ......    11-61-86    21-61-86  ............    41-61-86    61-61-86
                                            ......    11-61-87    21-61-87  ............    41-61-87    61-61-87
                                            ......    11-61-90    21-61-90  ............    41-61-90    61-61-90
                                            ......    11-61-91    21-61-91  ............    41-61-91    61-61-91
                                            ......    11-61-94    21-61-94  ............    41-61-94    61-61-94
                                            ......    11-61-99    21-61-99  ............    41-61-99    61-61-99
Salaries and expenses of clerks and            452    11-61-01    21-61-01  ............    41-61-01    61-61-01
 attendants...............................
                                            ......    11-61-99    21-61-99  ............    41-61-99    61-61-99
                                            ......    11-61-86    21-61-86  ............    41-61-86    61-61-86
                                            ......    11-61-87    21-61-87  ............    41-61-87    61-61-87
                                            ......    11-61-90    21-61-90  ............    41-61-90    61-61-90
                                            ......    11-61-91    21-61-91  ............    41-61-91    61-61-91
                                            ......    11-61-92    21-61-92  ............    41-61-92    61-61-92
                                            ......    11-61-94    21-61-94  ............    41-61-94    61-61-94
                                            ......  ..........    21-61-99  ............    41-61-99    61-61-99
General office supplies and expenses......     453  ..........    21-61-01  ............    41-61-01    61-61-01
Law expenses..............................     454    11-61-92    21-61-92  ............    41-61-92    61-61-92
Insurance.................................     455  ..........  ..........  ............  ..........    53-61-00
Employees health and welfare benefits.....     456    12-61-00  ..........  ............  ..........  ..........

[[Page 135]]

 
Pensions..................................     457    12-11-00  ..........  ............  ..........  ..........
                                            ......    12-12-00  ..........  ............  ..........  ..........
                                            ......    12-13-00  ..........  ............  ..........  ..........
                                            ......    12-21-00  ..........  ............  ..........  ..........
                                            ......    12-22-00  ..........  ............  ..........  ..........
                                            ......    12-23-00  ..........  ............  ..........  ..........
                                            ......    12-31-00  ..........  ............  ..........  ..........
                                            ......    12-32-00  ..........  ............  ..........  ..........
                                            ......    12-34-00  ..........  ............  ..........  ..........
                                            ......    12-35-00  ..........  ............  ..........  ..........
                                            ......    12-61-00  ..........  ............  ..........  ..........
Stationery and printing...................     458  ..........  \2\ 21-61-  ............  \2\ 41-61-  ..........
                                                                        xx                        xx
Other expenses............................     460    11-61-99    21-61-99  ............    41-61-99    61-61-99
General joint facilities--Dr..............     461  ..........  ..........      37-61-00  ..........  ..........
General joint facilities--Cr..............     462  ..........  ..........      38-61-00  ..........  ..........
Various expenses..........................  ......    11-61-94    21-61-94  ............    41-61-94    61-61-94
----------------------------------------------------------------------------------------------------------------
Footnotes:
\1\ Freight account activity/subactivity numbers are shown except when old accounts are exclusively passenger
  expenses Passenger and common activity/subactivity numbers shall be used where appropriate.
\2\ Account numbers with the last 2 digits ``xx'' indicates that the account is subdivided by applicable
  functions See account texts for appropriate function assignment.


       Transportation Operating Revenue Accounts Conversion Table
------------------------------------------------------------------------
 System of accounts eff. prior to Jan.   System of accounts eff. Jan. 1,
                1, 1978                               1978
------------------------------------------------------------------------
         Account title            No.    No.         Account title
------------------------------------------------------------------------
                     Transportation Revenue Accounts
------------------------------------------------------------------------
Transportation; rail line......    100    100  Transportation; rail
                                                line.
Freight........................    101    101  Freight.
Passenger......................    102    102  Passenger.
Baggage........................    103    103  Passenger-related.
Sleeping car...................    104    103   Do.
Parlor and chair car...........    105    103   Do.
Other passenger-train..........    108    103   Do.
Milk...........................    109    101  Freight.
Switching......................    110    104  Switching.
Water transfers................    113    105  Water transfers.
Incidental.....................    130    110  Incidental.
Dining and buffet..............    131    103  Passenger-related.
Hotel and restaurant...........    132    110  Incidental.
Station, train, and boat           133    110   Do.
 privileges.
Storage; freight...............    135    110   Do.
Demurrage......................    137    106  Demurrage.
Communication..................    138    110  Incidental.
Grain elevator.................    139    110   Do.
Power..........................    141    110   Do.
Rent of buildings and other        142    110   Do.
 property.
Miscellaneous..................    143    110   Do.
Joint facility.................    150    120  Joint facility.
Joint facility--cr.............    151    121  Joint facility--cr.
Joint facility--dr.............    152    122  Joint facility--dr.
------------------------------------------------------------------------


                    Income Accounts Conversion Table
------------------------------------------------------------------------
 System of accounts eff. prior to Jan.   System of accounts eff. Jan. 1,
                1, 1978                               1978
------------------------------------------------------------------------
         Account title            No.    No.         Account title
------------------------------------------------------------------------
                             Income Accounts
------------------------------------------------------------------------
Railway operating revenues.....    501    501  Railway operating
                                                revenues.
Revenues from miscellaneous        502    506  Revenues from property
 operations.                                    used in other than
                                                carrier operations.

[[Page 136]]

 
Hire of freight cars and           503  .....  32-22-00, 32-23-00, 36-22-
 highway revenue freight                        00, and 36-23-00.
 equipment; credit balance.
Rent from locomotives..........    504  .....  32-21-00, and 36-21-00.
Rent from passenger-train cars.    505  .....  32-25-00, and 36-25-00.
Rent from floating equipment...    506  .....  32-23-00, and 36-23-00.
Rent from work equipment.......    507  .....  32-23-00, and 36-23-00.
Joint facility rent income.....    508  .....  34-11-00, 34-12-00, 34-13-
                                                00, 34-21-00, 34-22-00,
                                                and 34-23-00
Income from lease of road and      509  .....  32-11-00, 32-12-00, 32-13-
 equipment.                                     00, 32-21-00, 32-22-00,
                                                and 32-23-00.
Miscellaneous rent income......    510    510  Miscellaneous rent
                                                income.
Income from nonoperating           511    506  Revenues from property
 property.                                      used in other than
                                                carrier operations.
                                 .....    534  Expenses of property used
                                                in other than carrier
                                                operations.
Separately operated properties;    512    512  Separately operated
 profit.                                        properties; profit.
Dividend income................    513    513  Dividend income.
Interest income................    514    514  Interest income.
Income from sinking and other      516    516  Income from sinking and
 reserve funds.                                 other reserve funds.
Release of premiums on funded      517    517  Release of premiums on
 debt.                                          funded debt.
Contributions from other           518    518  Contributions from other
 companies.                                     companies.
Miscellaneous income...........    519    519  Miscellaneous income.
Railway operating expenses.....    531    531  Railway operating
                                                expenses.
Railway tax accruals...........    532    556  Income taxes on ordinary
                                                income.
                                               64-61-00 Property Taxes.
                                               12-xx-00 Fringe Benefits.
                                               65-61-00 Other Taxes.
Provision for deferred taxes...    533    557  Provision for deferred
                                                taxes.
Expenses of miscellaneous          534    534  Expenses of property used
 operations.                                    in other than carrier
                                                operations.
Taxes on miscellaneous             535    535  Taxes on property used in
 operating property.                            other than carrier
                                                operations.
Hire of freight cars and           536  .....  31-22-00, 35-22-00, 31-23-
 highway revenue freight                        00, and 35-23-00.
 equipment--debit balance.
Rent for locomotives...........    537  .....  31-21-00, and 35-21-00.
Rent for passenger-train cars..    538  .....  31-25-00, and 35-25-00.
Rent for floating equipment....    539  .....  31-23-00, and 35-23-00.
Rent for work equipment........    540  .....  31-23-00, and 35-23-00.
Joint facility rents...........    541  .....  33-11-00, 33-12-00, 33-13-
                                                00, 33-21-00, 33-22-00,
                                                and 33-23-00.
Rent for leased roads..........    542  .....  31-11-00, 31-12-00, 31-13-
                                                00, 31-21-00, 31-22-00,
                                                and 31-23-00.
Miscellaneous rents............    543    543  Miscellaneous rents.
Miscellaneous tax accruals.....    544    544  Miscellaneous taxes.
Taxes on property used in other    535
 than carrier operations.
Separately operated properties;    545    545  Separately operated
 loss.                                          properties; loss.
Interest on funded debt........    546    546  Interest on funded debt.
Interest on unfunded debt......    547    547  Interest on unfunded
                                                debt.
Amortization of discount on        548    548  Amortization of discount
 funded debt.                                   on funded debt.
Maintenance of investment          549    549  Maintenance of investment
 organization.                                  organization.
Income transferred to other        550    550  Income transferred to
 companies.                                     other companies.
Miscellaneous income charges...    551    551  Miscellaneous income
                                                charges.
                                 .....    553  Uncollectible accounts.
Unusual or infrequent items        555    555  Unusual or infrequent
 (debit) credit.                                items (debit) credit.
Income or loss from operations     560    560  Income or loss from
 of discontinued segments.                      operations of
                                                discontinued segments.
Gain or loss on disposal of        562    562  Gain or loss on disposal
 discontinued segments.                         of discontinued
                                                segments.
Extraordinary items (net)......    570    570  Extraordinary items
                                                (net).
Income taxes on extraordinary      590    590  Income taxes on
 items.                                         extraordinary items.
Provision for deferred taxes--     591    591  Provision for deferred
 extraordinary items.                           taxes--extraordinary
                                                items.
Cumulative effect of changes in    592    592  Cumulative effect of
 accounting principles.                         changes in accounting
                                                principles.
------------------------------------------------------------------------


[[Page 137]]


                Retained Income Accounts Conversion Table
------------------------------------------------------------------------
 System of accounts eff. prior to Jan.   System of accounts eff. Jan. 1,
                1, 1978                               1978
------------------------------------------------------------------------
         Account title            No.     No.         Account title
------------------------------------------------------------------------
                                 Credit
------------------------------------------------------------------------
Credit balance (at beginning       601     601  Credit balance (at
 of calendar year).                              beginning of calendar
                                                 year).
Prior period adjustments to      601.5   601.5  Prior period adjustments
 beginning retained income                       to beginning retained
 account.                                        earnings account.
Credit balance transferred         602     602  Credit balance
 from income.                                    transferred from
                                                 income.
Other credits to retained          606     606  Other credits to
 income.                                         retained earnings.
------------------------------------------------------------------------
                                  Debit
------------------------------------------------------------------------
Debit balance (at beginning of     611     611  Debit balance (at
 calendar year).                                 beginning of calendar
                                                 year).
Debit balance transferred from     612     612  Debit balance
 income.                                         transferred from
                                                 income.
Other debits to retained           616     616  Other debits to retained
 income.                                         earnings.
Appropriations for sinking and     620     620  Appropriations for
 other reserve funds.                            sinking and other
                                                 funds.
Appropriations for other           621     621  Appropriations for other
 purposes.                                       purposes.
Appropriations released.......     622     603  Appropriations released.
Dividends.....................     623     623  Dividends.
------------------------------------------------------------------------


             General Balance Sheet Accounts Conversion Table
------------------------------------------------------------------------
 System of accounts eff. prior to Jan.   System of accounts eff. Jan. 1,
                1, 1978                               1978
------------------------------------------------------------------------
         Account title            No.     No.         Account title
------------------------------------------------------------------------
Cash..........................     701     701  Cash.
Temporary cash investments....     702     702  Temporary cash
                                                 investments.
Special deposits..............     703     703  Special deposits.
Loans and notes receivable....     704     704  Loans and notes
                                                 receivable.
                                ......   708.5  Receivables from
                                                 affiliated companies.
                                ......   709.5  Allowance for
                                                 uncollectible accounts.
Traffic, car service and other     705     705  Accounts receivable;
 balances--dr.                                   interline and other
                                                 balances.
                                ......   709.5  Allowances for
                                                 uncollectible accounts.
                                ......     752  Accounts payable;
                                                 interline and other
                                                 balances.
Net balance receivable from        706     706  Accounts receivable;
 agents and conductors.                          customers.
Miscellaneous accounts             707     707  Accounts receivable;
 receivable.                                     other.
                                ......   708.5  Receivables from
                                                 affiliated companies.
                                ......   709.5  Allowance for
                                                 uncollectible accounts.
Interest and dividends             708     708  Interest and dividends
 receivable.                                     receivable.
                                ......   708.5  Receivables from
                                                 affiliated companies.
                                ......   709.5  Allowance for
                                                 uncollectible accounts.
Accrued accounts receivable...     709     709  Accrued accounts
                                                 receivable.
Working fund advances.........     710     710  Working funds.
Prepayments...................     711     711  Prepayments.
Material and supplies.........     712     712  Material and supplies.
Other current assets..........     713     713  Other current assets.
Deferred income tax charges...     714     714  Deferred income tax
                                                 debits.
Sinking funds.................     715     715  Sinking funds.
Capital and other reserve          716     716  Capital funds.
 funds.
Insurance and other funds.....     717     717  Other funds.
Investment in affiliated           721     721  Investments and
 companies.                                      advances; affiliated
                                                 companies.
Other investments.............     722     722  Other investments and
                                                 advances.
Reserve for adjustment of          723   721.5  Adjustments; investments
 investment in securities--cr.                   and advances--
                                                 affiliated companies.
                                ......     723  Adjustments; other
                                                 investments and
                                                 advances.
Road and equipment property...     731     731  Road and equipment
                                                 property.
Organization expenses.........      71     739  Organization expenses.
Improvements on leased             732     732  Improvements on leased
 property.                                       property.
Accrued depreciation;              733     733  Accumulated
 improvements on leased                          depreciation;
 property.                                       improvements on leased
                                                 property.
Accrued depreciation; road and     735     735  Accumulated
 equipment.                                      depreciation; road and
                                                 equipment property.
Amortization of defense            736     736  Accumulated
 projects; road and equipment.                   amortization; road and
                                                 equipment property--
                                                 defense projects.
                                ......     734  Accumulated
                                                 amortization;
                                                 improvements on leased
                                                 property--defense
                                                 projects.
Miscellaneous physical             737     737  Property used in other
 property.                                       than carrier
                                                 operations.
Accrued depreciation;              738     738  Accumulated
 miscellaneous physical                          depreciation; property
 property.                                       used in other than
                                                 carrier operations.

[[Page 138]]

 
Other assets..................     741     741  Other assets.
Unamortized discount on long-    770.1   770.1  Unamortized debt
 term debt.                                      discount.
Other deferred charges........     743     743  Other deferred debits.
Accumulated deferred income        744     744  Accumulated deferred
 tax charges.                                    income tax debits.
------------------------------------------------------------------------
                               Liabilities
------------------------------------------------------------------------
Loans and notes payable.......     751     751  Loans and notes payable.
                                ......     757  Payables to affiliated
                                                 companies.
Traffic, car service and other     752     752  Accounts payable;
 balances--cr.                                   interline and other
                                                 balances.
                                ......     705  Accounts receivable;
                                                 interline and other
                                                 balances.
                                ......   709.5  Allowance for
                                                 uncollectible accounts.
Audited accounts and wages         753     753  Audited accounts and
 payable.                                        wages payable.
Miscellaneous accounts payable     754     754  Accounts payable; other.
                                ......     757  Payables to affiliated
                                                 companies.
Interest matured unpaid.......     755     755  Interest payable.
                                ......     757  Payables to affiliated
                                                 companies.
Dividends matured unpaid......     756     756  Dividends payable.
                                ......     757  Payables to affiliated
                                                 companies.
Unmatured interest accrued....     757     755  Interest payable.
                                ......     757  Payables to affiliated
                                                 companies.
Unmatured dividends declared..     758     756  Dividends payable.
                                ......     757  Payables to affiliated
                                                 companies.
Accrued accounts payable......     759     759  Accrued accounts
                                                 payable.
Federal income taxes accrued..     760     760  Federal income taxes
                                                 accrued.
Other taxes accrued...........     761     711  Prepayments.
                                ......     761  State and other income
                                                 taxes accrued.
                                ......   761.5  Other taxes accrued.
Deferred income tax credits...     762     762  Deferred inome tax
                                                 credits.
Other current liabilities.....     763     763  Other currrent
                                                 liabilities.
Equipment obligations and          764     764  Equipment obligations
 other debt due within one                       and other long-term
 year.                                           debt due within 1 year.
Funded debt unmatured.........     765     765  Funded debt unmatured.
Equipment obligations.........     766     766  Equipment obligations.
Receivers' and trustees'           767     767  Receivers' and trustees'
 securities.                                     securities.
Debt in default...............     768     768  Debt in default.
Amounts payable to affiliated      769     769  Accounts payable;
 companies.                                      affiliated companies.
Pension and welfare reserves..     771     771  Accrued liability;
                                                 pension and welfare.
Casualty and other reserves...     774     774  Accrued liability;
                                                 casualty and other
                                                 claims.
                                ......     775  Other accrued
                                                 liabilities.
Interest in default...........     781     781  Interest in default.
Other liabilities.............     782     782  Other liabilities.
Unamortized premium on long-     790.2   770.2  Unamortized premium on
 term debt.                                      debt.
Other deferred credits........     784     784  Other deferred credits.
Accrued liability; leased          785     772  Accrued liability;
 property.                                       leased property.
Accumulated deferred income        786     786  Accumulated deferred
 tax credits.                                    income tax credits.
------------------------------------------------------------------------
                          Shareholders' Equity
------------------------------------------------------------------------
Capital stock issued..........     791     791  Capital stock.
Stock liability for conversion     792     792  Liability for conversion
                                                 of capital stock.
Discount on capital stock.....     793     793  Discount on capital
                                                 stock.
Premiums and assessment on         794     794  Premiums and assessments
 capital stock.                                  on capital stock.
Paid-in surplus...............     795     795  Other capital.
Other capital surplus.........     796     795   Do.
Retained income; appropriated.     797     797  Retained earnings;
                                                 appropriated.
Retained income;                   798     798  Retained earnings;
 unappropriated.                                 unappropriated.
Treasury stock................   798.5   798.5  Treasury stock.
------------------------------------------------------------------------


[[Page 139]]



                 Subpart B_Branch Line Accounting System

900 Definitions.
    Unless otherwise required by context, the following definitions 
apply in this subpart:
    Account means an account in the STB's Uniform System of Accounts 
(USOA), for Railroad companies (49 CFR Part 1201, Subpart A).
    IC Act means the Interstate Commerce Act (49 U.S.C. 1 et seq.), as 
amended.
    Branch Line or Branch means a rail line or segment of line which (a) 
has been designated on a transportation system diagram in categories 
(1), (2), (3), or (4) (49 CFR 1152.10(b) (1), (2), (3), (4)); or (b) is 
the subject of a directed service order under section 304(d)(3) of the 
3R Act; or (c) is the subject of a rail continuation service agreement 
entered into prior to the designation of the line on a system diagram.
    STB or Board means the Surface Transportation Board.
    Designated State agency means the instrumentality created by a State 
or designated by appropriate authority to administer or coordinate its 
State rail plan as required by section 5(j)(2) of the Department of 
Transportation Act (90 Stat. 131) or section 402(c)(1)(A) of the 3R Act 
(87 Stat. 985) or regulations promulgated pursuant thereto.
    Railroad means a common carrier by railroad, as defined in section 
1(3) of the Interstate Commerce Act (49 U.S.C. 1(3)).
    3R Act means the Regional Rail Reorganization Act of 1973, Pub. L. 
93-236, 87 Stat. 985, as amended.
    4R Act means the Railroad Revitalization and Regulatory Reform Act 
of 1976, Pub. L. 94-210, 90 Stat. 31.
    XX, when used in place of digits in a six-digit account number, 
means that all accounts containing the remaining four-digits are 
included. Example: 11-21-XX refers to all salary and wage accounts for 
locomotives because 11 designates salaries and wages and 21 designates 
locomotives. Thus, 11-21-XX includes all of the following accounts: 11-
21-01; 11-21-40; 11-21-48; 11-21-39; and 11-21-99. Similarly, XX-31-67 
means all accounts containing 31 (train operations) and 67 (locomotive 
fuel).

[43 FR 1733, Jan. 11, 1978, as amended at 47 FR 49596, Nov. 1, 1982; 67 
FR 57533, Sept. 11, 2002]
910 Purpose and scope.
    Section 205(e)(1)(A) of the 3R Act directs the office to issue 
regulations which will permit the collection and publication by the 
Consolidated Rail Corp. (ConRail), or by profitable railroads of 
information necessary to determine accurately the revenues attributable, 
avoidable costs, and service units of light-density lines scheduled for 
abandonment. This accurate information is intended to facilitate the 
determination of the revenues and avoidable costs in abandonment 
proceedings and in potential offers of subsidy. This information is 
intended to be compatible with the Regional Subsidy Standards, for those 
lines which were not conveyed to ConRail under the final system plan and 
with the National Subsidy Standards (49 CFR Part 1152, Subpart D), for 
all other lines. The purpose of the Branch Line Accounting System 
regulations is to specify an accounting system for the collection and 
publication of this information.

[43 FR 1733, Jan. 11, 1978, as amended at 47 FR 49596, Nov. 1, 1982; 67 
FR 57533, Sept. 11, 2002]
920 Collection of data.
    (a) Lines for which data collection is required. The railroad shall 
collect data on all branch lines which meet the criteria listed in 
paragraphs 1 through 4 below. The data to be collected are specified in 
section 920(b).
    (1) Branch lines in categories (1), (2), and (3) on the System 
Diagram Map include, respectively, lines for which a carrier intends to 
file an abandonment application within three years, lines which the 
carrier has under study and are potentially subject to abandonment, and 
lines for which an abandonment application is pending before the Board. 
The collection of data on such lines shall commence on the first day of 
the month after the line has been designated in one of the categories 
and will continue so long as the branch line is retained in one of these 
categories. The assignment and apportionment

[[Page 140]]

methodology set forth in Part 1152, Subchapter B (National Subsidy 
Standards), shall be applied.
    (2) For branch lines operated under an order directing service, 
under section 304(d)(3) of the 3R Act, data shall be collected from the 
effective date of the order until the order is withdrawn.
    (3) For branch lines operated under a rail service continuation 
agreement under section 1a(6)(a) of the IC Act, data shall be collected 
from the effective date of the agreement until the termination of the 
agreement. The assignment and apportionment methodology set forth in 
Part 1152, Subchapter B (National Subsidy Standards), shall be applied.
    (4) For branch lines operated under a rail service continuation 
agreement under section 304 of the 3R Act, data collection shall 
commence on the effective date of the agreement and shall continue until 
the termination date of the agreement.
    (b) Data to be collected. The data collected shall include the items 
of revenue, expense, and service units which are specified in 49 CFR 
1152, as described in the account texts listed in section 950. The 
format for presentation of these data is specified in section 940.

[43 FR 1733, Jan. 11, 1978, as amended at 47 FR 49596, Nov. 1, 1982; 67 
FR 57533, Sept. 11, 2002]
930 Publication of data.
    (a) General. The railroad shall file on or before June 30 of each 
calendar year the certification included in these regulations as 
Appendix I. The railroad shall include a description of each branch line 
using the format set forth in Appendix I of these regulations. The 
description of each branch line requires the same data as that submitted 
under 49 CFR 1152.11. This section prescribes the branch line 
information required in conjunction with the system diagram maps 
specifying the line's designation, states and counties traversed, 
delineation of mileposts, and location of agency and terminal stations.
    (b) [Reserved]
    (c) Access to records. The records, accounts, working papers, and 
other documents reflecting the revenues, cost, and service unit data of 
each branch line for which the railroad must maintain data shall be made 
available for inspection and examination by the Board and, for lines 
situated within its State, by the designated State agency at a time and 
place mutually agreeable to the parties. The railroad shall also 
reproduce such records for the designated State agency, provided the 
agency pays the reasonable cost thereof.
    (d) Waivers and modifications. The STB's Office of Economics, 
Environmental Analysis, and Administration may, with respect to 
individual requests, upon good cause shown, waive or modify any 
requirement of this section not required by law.

[43 FR 1733, Jan. 11, 1978, as amended at 44 FR 9730, Feb. 14, 1979; 47 
FR 49596, Nov. 1, 1982; 67 FR 57533, Sept. 11, 2002]
940 Annual branch line report.
    This section specifies the format in which the data collected for 
each branch line shall be maintained. Definitions of each account are 
presented in section 950.

------------------------------------------------------------------------
                  (A) Attributable revenue                      Amount
------------------------------------------------------------------------
101 Freight.................................................  ..........
104 Switching...............................................  ..........
105 Water transfers.........................................  ..........
106 Demurrage...............................................  ..........
110 Incidental..............................................  ..........
121 Joint facility--credit..................................  ..........
122 Joint facility--debit...................................  ..........
506 Revenue from property used in other than carrier          ..........
 operations.................................................
510 Miscellaneous rent income...............................  ..........
519 Miscellaneous income....................................  ..........
599 Subsidy payments from preexisting contracts.............  ..........
                                                             ===========
 Total attributable revenues................................  ..........
------------------------------------------------------------------------


[[Page 141]]


                                          (B) On-Branch Avoidable Costs
----------------------------------------------------------------------------------------------------------------
                                                                                 Freight
                                                       ---------------------------------------------------------
                                                                       Material,
                    Line item--(a)                       Salaries        tools,
                                                        and wages--    supplies,       Purchased    General--(e)
                                                            (b)        fuels, and    services--(d)
                                                                    lubricants--(c)
----------------------------------------------------------------------------------------------------------------
(1) Actual or apportioned expense accounts:
 Way and structures: Administration:
  001 Track...........................................  ..........  ...............  .............  ............
  002 Bridge and Building.............................  ..........  ...............  .............  ............
  003 Signal..........................................  ..........  ...............  .............  ............
  004 Communication...................................  ..........  ...............  .............  ............
  005 Other...........................................  ..........  ...............  .............  ............
 Repair and maintenance:
  006 Roadway--Running................................  ..........  ...............  .............  ............
  007 Roadway--Switching..............................  ..........  ...............  .............  ............
  008 Tunnels and Subways--Running....................  ..........  ...............  .............  ............
  009 Tunnels and Subways--Switching..................  ..........  ...............  .............  ............
  010 Bridges and Culverts--Running...................  ..........  ...............  .............  ............
  011 Bridges and Culverts--Switching.................  ..........  ...............  .............  ............
  012 Ties--Running...................................         N/A  ...............           N/A           N/A
  013 Ties--Switching.................................         N/A  ...............           N/A           N/A
  014 Rail--Running...................................         N/A  ...............           N/A           N/A
  015 Rail--Switching.................................         N/A  ...............           N/A           N/A
  016 Other Track Material--Running...................         N/A  ...............           N/A           N/A
  017 Other Track Material--Switching.................         N/A  ...............           N/A           N/A
  018 Ballast--Running................................         N/A  ...............           N/A           N/A
  019 Ballast--Switching..............................         N/A  ...............           N/A           N/A
  020 Track Laying and Surfacing--Running.............  ..........  ...............  .............  ............
  021 Track Laying and Surfacing--Switching...........  ..........  ...............  .............  ............
  022 Road Property Damaged--Running..................  ..........  ...............  .............  ............
  023 Road Property Damaged--Switching................  ..........  ...............  .............  ............
  024 Road Property Damaged--Other....................  ..........  ...............  .............  ............
  025 Signals and Interlockers--Running...............  ..........  ...............  .............  ............
  026 Signals and Interlockers--Switching.............  ..........  ...............  .............  ............
  027 Communications Systems..........................  ..........  ...............  .............  ............
  028 Electric Power Systems..........................  ..........  ...............  .............  ............
  029 Highway Grade Crossings--Running................  ..........  ...............  .............  ............
  030 Highway Grade Crossings--Switching..............  ..........  ...............  .............  ............
  031 Station and Office Buildings....................  ..........  ...............  .............  ............
  032 Shop Buildings--Locomotives.....................  ..........  ...............  .............  ............
  033 Shop Buildings--Freight Cars....................  ..........  ...............  .............  ............
  034 Shop Buildings--Other Equipment.................  ..........  ...............  .............  ............
  101 Locomotive Servicing Facilities.................  ..........  ...............  .............  ............
  102 Miscellaneous Buildings and Structures..........  ..........  ...............  .............  ............
  103 Coal Terminals..................................  ..........  ...............  .............  ............
  104 Ore Terminals...................................  ..........  ...............  .............  ............
  105 Other Marine Terminals..........................  ..........  ...............  .............  ............
  106 TOFC/COFC--Terminals............................  ..........  ...............  .............  ............
  107 Motor Vehicle Loading and Distribution            ..........  ...............  .............  ............
   Facilities.........................................
  108 Facilities for Other Specialized Service          ..........  ...............  .............  ............
   Operations.........................................
  109 Roadway Machines................................  ..........  ...............  .............  ............
  110 Small Tools and Supplies........................  ..........  ...............  .............  ............
  111 Snow Removal....................................  ..........  ...............  .............  ............
  112 Fringe Benefits--Running........................         N/A            N/A             N/A   ............
  113 Fringe Benefits--Switching......................         N/A            N/A             N/A   ............
  114 Fringe Benefits--Other..........................         N/A            N/A             N/A   ............
  115 Casualties and Insurance--Running...............         N/A            N/A             N/A   ............
  116 Casualties and Insurance--Switching.............         N/A            N/A             N/A   ............
  117 Casualties and Insurance--Other.................         N/A            N/A             N/A   ............
  118 Lease Rentals--Debit--Running...................         N/A            N/A    .............          N/A
  119 Lease Rentals--Debit--Switching.................         N/A            N/A    .............          N/A
  120 Lease Rentals--Debit--Other.....................         N/A            N/A    .............          N/A
  121 Lease Rentals--(Credit)--Running................         N/A            N/A    .............          N/A
  122 Lease Rentals--(Credit)--Switching..............         N/A            N/A    .............          N/A
  123 Lease Rentals--(Credit)--Other..................         N/A            N/A    .............          N/A
  124 Joint Facility Rent--Debit--Running.............         N/A            N/A    .............          N/A
  125 Joint Facility Rent--Debit--Switching...........         N/A            N/A    .............          N/A
  126 Joint Facility Rent--Debit--Other...............         N/A            N/A    .............          N/A
  127 Joint Facility Rent--(Credit)--Running..........         N/A            N/A    .............          N/A
  128 Joint Facility Rent--(Credit)--Switching........         N/A            N/A    .............          N/A
  129 Joint Facility Rent--(Credit)--Other............         N/A            N/A    .............          N/A
  130 Other Rents--Debit--Running.....................         N/A            N/A    .............          N/A

[[Page 142]]

 
  131 Other Rents--Debit--Switching...................         N/A            N/A    .............          N/A
  132 Other Rents--Debit--Other.......................         N/A            N/A    .............          N/A
  133 Other Rents--(Credit)--Running..................         N/A            N/A    .............          N/A
  134 Other Rents--(Credit)--Switching................         N/A            N/A    .............          N/A
  135 Other Rents--(Credit)--Other....................         N/A            N/A    .............          N/A
  136 Depreciation--Running...........................         N/A            N/A             N/A   ............
  137 Depreciation--Switching.........................         N/A            N/A             N/A   ............
  138 Depreciation--Other.............................         N/A            N/A             N/A   ............
  139 Joint Facility--Debit--Running..................         N/A            N/A    .............          N/A
  140 Joint Facility--Debit--Switching................         N/A            N/A    .............          N/A
  141 Joint Facility--Debit--Other....................         N/A            N/A    .............          N/A
  142 Joint Facility--(Credit)--Running...............         N/A            N/A    .............          N/A
  143 Joint Facility--(Credit)--Switching.............         N/A            N/A    .............          N/A
  144 Joint Facility--(Credit)--Other.................         N/A            N/A    .............          N/A
  145 Dismantling Retired Road Property--Running......  ..........  ...............  .............  ............
  146 Dismantling Retired Road Property--Switching....  ..........  ...............  .............  ............
  147 Dismantiling Retired Road Property--Other.......  ..........  ...............  .............  ............
  148 Other--Running..................................  ..........  ...............  .............  ............
  149 Other--Swtiching................................  ..........  ...............  .............  ............
  150 Other--Other....................................  ..........  ...............  .............  ............
  151 Total Way and Structures........................  ..........  ...............  .............  ............
 Equipment: Locomotives:
  201 Administration..................................  ..........  ...............  .............  ............
  202 Repair and Maintenance..........................  ..........  ...............  .............  ............
  203 Machinery Repair................................  ..........  ...............  .............  ............
  204 Equipment Damaged...............................  ..........  ...............  .............  ............
  205 Fringe Benefits.................................         N/A            N/A             N/A   ............
  206 Other Casualties and Insurance..................         N/A            N/A             N/A   ............
  207 Lease Rentals--Debit............................         N/A            N/A    .............          N/A
  208 Lease Rentals--(Credit).........................         N/A            N/A    .............          N/A
  209 Joint Facility Rent--Debit......................         N/A            N/A    .............          N/A
  210 Joint Facility Rent--(Credit)...................         N/A            N/A    .............          N/A
  211 Other Rents--Debit..............................         N/A            N/A    .............          N/A
  212 Other Rents--(Credit)...........................         N/A            N/A    .............          N/A
  213 Depreciation....................................         N/A            N/A             N/A   ............
  214 Joint Facility--Debit...........................         N/A            N/A    .............          N/A
  215 Joint Facility--(Credit)........................         N/A            N/A    .............          N/A
  216 Repairs Billed to Others--(Credit)..............         N/A            N/A    .............          N/A
  217 Dismantling Retired Property....................  ..........  ...............  .............  ............
  218 Other...........................................  ..........  ...............  .............  ............
  219 Total Locomotives...............................  ..........  ...............  .............  ............
 Freight cars:
  220 Administration..................................  ..........  ...............  .............  ............
  221 Repair and Maintenance..........................  ..........  ...............  .............  ............
  222 Machinery Repair................................  ..........  ...............  .............  ............
  223 Equipment Damaged...............................  ..........  ...............  .............  ............
  224 Fringe Benefits.................................         N/A            N/A             N/A   ............
  225 Other Casualties and Insurance..................         N/A            N/A             N/A   ............
  226 Lease Rentals--Debit............................         N/A            N/A    .............          N/A
  227 Lease Rentals--(Credit).........................         N/A            N/A    .............          N/A
  228 Joint Facility Rent--Debit......................         N/A            N/A    .............          N/A
  229 Joint Facility Rent--(Credit)...................         N/A            N/A    .............          N/A
  230 Other Rents--Debit..............................         N/A            N/A    .............          N/A
  231 Other Rents--(Credit)...........................         N/A            N/A    .............          N/A
  232 Depreciation....................................         N/A            N/A             N/A   ............
  233 Joint Facility--Debit...........................         N/A            N/A    .............          N/A
  234 Joint Facility--(Credit)........................         N/A            N/A    .............          N/A
  235 Repairs Billed to Others--(Credit)..............         N/A            N/A    .............          N/A
  236 Dismantling Retired Property....................  ..........  ...............  .............  ............
  237 Other...........................................  ..........  ...............  .............  ............
  238 Total Freight Cars..............................  ..........  ...............  .............  ............
 Other Equipment:
  301 Administration..................................  ..........  ...............  .............  ............
 Repair and Maintenance:
  302 Trucks, Trailers, and Containers--Revenue         ..........  ...............  .............  ............
   Service............................................
  303 Floating Equipment--Revenue Service.............  ..........  ...............  .............  ............
  304 Floating and Other Revenue Equipment............  ..........  ...............  .............  ............

[[Page 143]]

 
  305 Computers and Data Processing Systems...........  ..........  ...............  .............  ............
  306 Machinery.......................................  ..........  ...............  .............  ............
  307 Work and Other Non-Revenue Equipment............  ..........  ...............  .............  ............
  308 Equipment Damaged...............................  ..........  ...............  .............  ............
  309 Fringe Benefits.................................         N/A            N/A             N/A   ............
  310 Other Casualties and Insurance..................         N/A            N/A             N/A   ............
  311 Lease Rentals--Debit............................         N/A            N/A    .............          N/A
  312 Lease Rentals--(Credit).........................         N/A            N/A    .............          N/A
  313 Joint Facility Rent--Debit......................         N/A            N/A    .............          N/A
  314 Joint Facility Rent--(Credit)...................         N/A            N/A    .............          N/A
  315 Other Rents--Debit..............................         N/A            N/A    .............          N/A
  316 Other Rents--(Credit)...........................         N/A            N/A    .............          N/A
  317 Depreciation....................................         N/A            N/A             N/A   ............
  318 Joint Facility--Debit...........................         N/A            N/A    .............          N/A
  319 Joint Facility--(Credit)........................         N/A            N/A    .............          N/A
  320 Repairs Billed to Others--(Credit)..............  ..........  ...............  .............  ............
  321 Dismantling Retired Property....................  ..........  ...............  .............  ............
  322 Other...........................................  ..........  ...............  .............  ............
  323 Total Other Equipment...........................  ..........  ...............  .............  ............
  324 Total Equipment.................................  ..........  ...............  .............  ............
 Transportation: Train operations:
  401 Administration..................................  ..........  ...............  .............  ............
  402 Engine Crews....................................  ..........  ...............  .............  ............
  403 Train Crews.....................................  ..........  ...............  .............  ............
  404 Dispatching Trains..............................  ..........  ...............  .............  ............
  405 Operating Signals and Interlockers..............  ..........  ...............  .............  ............
  406 Operating Drawbridges...........................  ..........  ...............  .............  ............
  407 Highway Crossing Protection.....................  ..........  ...............  .............  ............
  408 Train Inspection and Lubrication................  ..........  ...............  .............  ............
  409 Locomotive Fuel.................................  ..........  ...............  .............  ............
  410 Electric Power Purchased or Produced for Motive   ..........  ...............  .............  ............
   Power..............................................
  411 Servicing Locomotives...........................  ..........  ...............  .............  ............
  412 Freight Lost or Damaged--Solely Related.........         N/A            N/A             N/A   ............
  413 Clearing Wrecks.................................  ..........  ...............  .............  ............
  414 Fringe Benefits.................................         N/A            N/A             N/A   ............
  415 Other Casualties and Insurance..................         N/A            N/A             N/A   ............
  416 Joint Facility--Debit...........................         N/A            N/A    .............          N/A
  417 Joint Facility--(Credit)........................         N/A            N/A    .............           NA
  418 Other...........................................  ..........  ...............  .............  ............
  419 Total Train Operations..........................  ..........  ...............  .............  ............
 Yard Operations:
  420 Administration..................................  ..........  ...............  .............  ............
  421 Switch Crews....................................  ..........  ...............  .............  ............
  422 Controlling Operations..........................  ..........  ...............  .............  ............
  423 Yard and Terminal Clerical......................  ..........  ...............  .............  ............
  424 Operating Switches, Signals Retarders and Humps.  ..........  ...............  .............  ............
  425 Locomotive Fuel.................................  ..........  ...............  .............  ............
  426 Electric Power Purchased or Produced for Motive   ..........  ...............  .............  ............
   Power..............................................
  427 Servicing Locomotives...........................  ..........  ...............  .............  ............
  428 Freight Lost or Damaged--Solely Related.........         N/A            N/A             N/A   ............
  429 Clearing Wrecks.................................  ..........  ...............  .............  ............
  430 Fringe Benefits.................................         N/A            N/A             N/A   ............
  431 Other Casualties and Insurance..................         N/A            N/A             N/A   ............
  432 Joint Facility--Debit...........................         N/A            N/A    .............          N/A
  433 Joint Facility--(Credit)........................         N/A            N/A    .............          N/A
  434 Other...........................................  ..........  ...............  .............  ............
  435 Total Yard Operations...........................  ..........  ...............  .............  ............
 Train and Yard Operations Common:
  501 Cleaning Car Interiors..........................  ..........  ...............  .............          N/A
  502 Adjusting and Transferring Loads................  ..........  ...............  .............          N/A
  503 Car Loading Devices and Grain Doors.............  ..........  ...............  .............          N/A
  504 Freight Lost or Damaged--all other..............         N/A            N/A             N/A   ............
  505 Fringe Benefits.................................         N/A            N/A             N/A   ............
  506 Total Train and Yard Operations Common..........  ..........  ...............  .............  ............
 Specialized Service Operations:
  507 Administration..................................  ..........  ...............  .............  ............
  508 Pickup and Delivery and Marine Line Haul........  ..........  ...............  .............  ............

[[Page 144]]

 
  509 Loading and Unloading and Local Marine..........  ..........  ...............  .............  ............
  510 Protection Services.............................  ..........  ...............  .............  ............
  511 Freight Lost or Damaged--Solely Related.........         N/A            N/A             N/A   ............
  512 Fringe Benefits.................................         N/A            N/A             N/A   ............
  513 Casualties and Insurance........................         N/A            N/A             N/A   ............
  514 Joint Facility--Debit...........................         N/A            N/A    .............          N/A
  515 Joint Facility--(Credit)........................         N/A            N/A    .............          N/A
  516 Other...........................................  ..........  ...............  .............  ............
  517 Total Specialized Services Operations...........  ..........  ...............  .............  ............
 Administrative Support Operations:
  518 Administration..................................  ..........  ...............  .............  ............
  519 Employees Performing Clerical and Accounting      ..........  ...............  .............  ............
   Functions..........................................
  520 Communication Systems Operation.................  ..........  ...............  .............  ............
  521 Loss and Damage Claims Processing...............  ..........  ...............  .............  ............
  522 Fringe Benefits.................................         N/A            N/A             N/A   ............
  523 Casualties and Insurance........................         N/A            N/A             N/A   ............
  524 Joint Facility--Debit...........................         N/A            N/A    .............          N/A
  525 Joint Facility--(Credit)........................         N/A            N/A    .............          N/A
  526 Other...........................................  ..........  ...............  .............  ............
  527 Total Administrative Support Operations.........  ..........  ...............  .............  ............
  528 Total transportation............................  ..........  ...............  .............  ............
 General and Administrative:
  601 Officers--General Administration................  ..........  ...............  .............  ............
  602 Accounting, Auditing and Finance................  ..........  ...............  .............  ............
  603 Management Services and Data Processing.........  ..........  ...............  .............  ............
  604 Marketing.......................................  ..........  ...............  .............  ............
  605 Sales...........................................  ..........  ...............  .............  ............
  606 Industrial Development..........................  ..........  ...............  .............  ............
  607 Personnel and Labor Relations...................  ..........  ...............  .............  ............
  608 Legal and Secretarial...........................  ..........  ...............  .............  ............
  609 Public Relations and Advertising................  ..........  ...............  .............  ............
  610 Research and Development........................  ..........  ...............  .............  ............
  611 Fringe Benefits.................................         N/A            N/A             N/A   ............
  612 Casualties and Insurance........................         N/A            N/A             N/A   ............
  613 Writedown of Uncollectible Accounts.............         N/A            N/A             N/A   ............
  614 Property Taxes..................................         N/A            N/A             N/A   ............
  615 Other Taxes Except on Corporate Income or                N/A            N/A             N/A   ............
   Payrolls...........................................
  616 Joint Facility--Debit...........................         N/A            N/A    .............          N/A
  617 Joint Facility--(Credit)........................         N/A            N/A    .............          N/A
  618 Other...........................................  ..........  ...............  .............  ............
  619 Total General and Administrative................  ..........  ...............  .............  ............
  620 Total Carrier Operating Expenses................  ..........  ...............  .............  ............
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                                                Amount
------------------------------------------------------------------------
(2) Other Computed Cost Elements:
  651 Locomotives return on investment......................  ..........
  652 Freight train car costs...............................  ..........
   01 Per day costs.........................................  ..........
   02 Mileage costs.........................................  ..........
  654 Rehabilitation........................................  ..........
  664 Deadheading, taxi and hotel costs.....................  ..........
   01 Deadheading...........................................  ..........
   02 Taxi..................................................  ..........
   03 Hotel.................................................  ..........
  665 Overhead movement costs...............................  ..........
   01 Transportation........................................  ..........
   02 Equipment.............................................  ..........
   03 Freight train cars--mileage portion...................  ..........
   Total Computed On-Branch Costs...........................  ..........
(3) Off-Branch Avoidable Costs:
  661 Terminal Costs........................................  ..........
   01 Modified terminal costs...............................  ..........
   02 Normal terminal costs.................................  ..........
   03 Interchange costs.....................................  ..........
  662 Freight train car costs...............................  ..........

[[Page 145]]

 
  663 Freight train revenue ton-mile costs..................  ..........
 Total Off-Branch Avoidable Costs...........................  ..........
(4) All Other Avoidable Costs:
  671 Working capital.......................................  ..........
  672 Required capital expenditures.........................  ..........
  673 Deferred maintenance..................................  ..........
  674 Current cost of freight train cars, locomotives, and    ..........
   other equipment..........................................
  675 Foregone tax benefits.................................  ..........
  676 Administrative costs..................................  ..........
  677 Deferred subsidy payment costs........................  ..........
  678 Casualty reserve expenses.............................  ..........
 Total, all other avoidable costs...........................  ..........
  681 Reasonable return on the value of property............  ..........
  682 Management fee........................................  ..........
(5) Total of avoidable costs, reasonable return and                    $
 management fee.............................................
                                                             -----------
------------------------------------------------------------------------


                            (C) Service Units
------------------------------------------------------------------------
                                                  Direct on-   Overhead
                                                    branch     movement
------------------------------------------------------------------------
(1) On-Branch Service Units--Freight-Car
 Accounts:
 821 Freight train car miles (loaded and empty):
  01 Box--Plain 40 foot.........................  ..........  ..........
  02 Box--Plain 50 foot or longer...............  ..........  ..........
  03 Box--Equipped..............................  ..........  ..........
  04 Gondola--Plain.............................  ..........  ..........
  05 Gondola--Equipped..........................  ..........  ..........
  06 Hopper--Covered............................  ..........  ..........
  07 Hopper--Open top--General Service..........  ..........  ..........
  08 Hopper--Open top--Special Service..........  ..........  ..........
  09 Refrigerator--Mechanical...................  ..........  ..........
  10 Refrigerator--Nonmechanical................  ..........  ..........
  11 Flat--TOFC/COFC............................  ..........  ..........
  12 Flat--Multi-level..........................  ..........  ..........
  13 Flat--General Service......................  ..........  ..........
  14 Flat--Other................................  ..........  ..........
  15 All other cars.............................  ..........  ..........
 823 Freight-train Car-days (loaded and empty):
  01 Box--Plain 40 foot.........................  ..........  ..........
  02 Box--Plain 50 foot or longer...............  ..........  ..........
  03 Box--Equipped..............................  ..........  ..........
  04 Gondola--Plain.............................  ..........  ..........
  05 Gondola--Equipped..........................  ..........  ..........
  06 Hopper--Covered............................  ..........  ..........
  07 Hopper--Open top--General Service..........  ..........  ..........
  08 Hopper--Open top--Special Service..........  ..........  ..........
  09 Refrigerator--Mechanical...................  ..........  ..........
  10 Refrigerator--Nonmechanical................  ..........  ..........
  11 Flat--TOFC/COFC............................  ..........  ..........
  12 Flat--Multi-level..........................  ..........  ..........
  13 Flat--General Service......................  ..........  ..........
  14 Flat--Other................................  ..........  ..........
  15 All other cars.............................  ..........  ..........
------------------------------------------------------------------------


------------------------------------------------------------------------
                                      Total off-   Overhead    Net off-
                                        branch     movement     branch
------------------------------------------------------------------------
      Locomotive-Mile Accounts
  813 Road locomotive unit miles....  ..........  ..........  ..........
  841 Road diesel locomotive gross    ..........  ..........  ..........
   ton-miles........................
  842 Road electric locomotive gross  ..........  ..........  ..........
   ton-miles........................
    Locomotive Unit Hour Accounts
  832 Road locomotive unit hours....  ..........  ..........  ..........
  833 Road diesel locomotive unit     ..........  ..........  ..........
   hours............................
  834 Road electric locomotive unit   ..........  ..........  ..........
   hours............................
  835 Yard locomotive unit hours....  ..........  ..........  ..........
  836 Yard diesel locomotive unit     ..........  ..........  ..........
   hours............................
  837 Yard electric locomotive unit   ..........  ..........  ..........
   hours............................
     Rented or Leased Equipment
  851 Freight train car-days........  ..........  ..........  ..........
  852 Floating equipment car-days...  ..........  ..........  ..........

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  855 Locomotive days...............  ..........  ..........  ..........
             Train hours
  861 Train hours...................  ..........  ..........  ..........
------------------------------------------------------------------------


------------------------------------------------------------------------
                                      Total off-   Overhead    Net off-
                                        branch     movement     branch
------------------------------------------------------------------------
(2) Off-Branch Service Units--Car-
 Mile Accounts:
 822 Freight train loaded car-miles
 by car type:
  01 Box--General service--           ..........  ..........  ..........
   unequipped.......................
  02 Box--General service--equipped.  ..........  ..........  ..........
  03 Box--Special service...........  ..........  ..........  ..........
  04 Gondola--General service.......  ..........  ..........  ..........
  05 Gondola--Special service.......  ..........  ..........  ..........
  06 Hopper--open--General service..  ..........  ..........  ..........
  07 Hopper--open--Special service..  ..........  ..........  ..........
  08 Hopper--covered................  ..........  ..........  ..........
  09 Stock..........................  ..........  ..........  ..........
  10 Flat--General service..........  ..........  ..........  ..........
  11 Flat--Special service..........  ..........  ..........  ..........
  12 Flat--TOFC.....................  ..........  ..........  ..........
  13 Autorack.......................  ..........  ..........  ..........
  14 Refrigerator--Meat mechanical..  ..........  ..........  ..........
  15 Refrigerator--Other mechanical.  ..........  ..........  ..........
  16 Refrigerator--Meat               ..........  ..........  ..........
   nonmechanical....................
  17 Refrigerator--Other              ..........  ..........  ..........
   nonmechanical....................
  18 Tank 9,999 gallons and under...  ..........  ..........  ..........
  19 Tank 10,000-18,999 gal.........  ..........  ..........  ..........
  20 Tank 19,000-21,999 gal.........  ..........  ..........  ..........
  21 Tank 22,000-27,999 gal.........  ..........  ..........  ..........
  22 Tank 28,000-31,999 gal.........  ..........  ..........  ..........
  23 Tank 32,000 and over...........  ..........  ..........  ..........
  24 All other......................  ..........  ..........  ..........
          Ton-Mile Accounts
831 Revenue ton-miles...............  ..........  ..........  ..........
------------------------------------------------------------------------


[43 FR 1733, Jan. 11, 1978, as amended at 43 FR 28498, June 30, 1978; 44 
FR 9730, Feb. 14, 1979]
950 Text and chart of accounts.
    This section defines each account outlined in the format shown under 
section 940 of these regulations.
    (a) Attributable revenues--101 Freight. (1) This account shall 
include revenue from the transportation of freight and from transit, 
stop, and recognizing privileges, upon the basis of lawful tariff rates.
    (2) This account shall include collections in excess of tariff 
charges, except where such amounts are segregated and held subject to 
refund.
    (3) Proceeds derived from the sale of unclaimed and refused freight 
which has been transported in accordance with the contract of shipment 
shall be credited to this account in cases where such items can be 
readily identified. Uncollectible tariff charges on such shipments shall 
be charged to this account.
    (4) Amounts determined to be uncollectible shall be accounted for in 
accordance with the text of account 63-61-00, ``General--Uncollectible 
accounts.''

                          Items To Be Credited

    (a) Revenue upon the basis of local freight tariff rates, regardless 
of class of train in which the freight is transported.
    (b) The carrier's proportion of revenue upon the basis of through 
freight tariff rates, regardless of class of train in which the freight 
is transported.
    (c) Revenue from transportation of mail matter, and empty mail 
pouches, at freight rates.
    (d) Revenue from transportation of freight on special trains at 
rates based on weights of shipments.
    (e) Revenue on basis of classifications and freight tariffs from 
transportation of caretakers of freight shipments.
    (f) Revenue from reconsigning privileges.
    (g) Revenue from stop privileges.
    (h) Revenue from transit privileges.

[[Page 147]]

    (i) Revenue upon the basis of arbitraries out of freight, rates for 
water transfers (ferriage, lighterage, and floatage).
    (j) Revenue from transportation of trailers and containers on flat 
cars in TOFC/COFC service upon the basis of all-rail line-haul freight 
tariff rates and under arrangements for motor carrier-railroad joint 
haul, and from the loading and unloading of trailers and containers on 
and from flat cars upon the basis of tariff rates and under arrangements 
for motor carrier-railroad joint haul.

                           Items To Be Charged

    (a) Amounts paid as bridge and ferry arbitraries on freight.
    (b) Amounts paid for completing a haul.
    (c) Amounts paid for elevation of freight.
    (d) Amounts paid for switching services, in connection with the 
transportation of freight, on the basis of switching tariffs, and 
allowances out of through rates, including amounts paid for switching 
empty cars in connection with a freight revenue movement.
    (e) Amounts paid for transferring freight between stations.
    (f) Arbitraries and allowances to others for lighterage and 
wharfage.
    (g) The carrier's proportion of overcharges resulting from the use 
of erroneous rates, weights, classifications or computations.
    (h) The carrier's proportion of refunds on account of errors in 
routing and billing.
    (i) The carrier's proportion of uncollected revenue on freight lost 
or destroyed in transit.
    (j) The carrier's proportion of uncollected tariff charges on 
damaged shipments for which charges neither shipper nor consignee is 
liable.
    (k) Amounts paid on basis of tariff rates for loading and unloading 
livestock.
    (l) Amounts paid to motor truck companies for hauling trailers and 
containers to and from TOFC/COFC terminals, and allowances to shippers 
who perform such service on the basis of tariff rates.

    Note A: Amounts paid for switching empty cars other than in 
connection with loaded movements shall be charged to operating expense 
account 61-32-XX, ``General--Other Expenses--Transportation, Yard, 
Freight,'' except that amounts paid for switching equipment for repairs 
shall be included in the appropriate equipment repair accounts.
    Note B: Other carriers' proportion of revenue and of uncollectible 
undercharges paid by the carrier on account of its errors in routing and 
billing shall be charged to operating expense account 61-35-76, 
``General--Other Expenses--Transportation, Administrative Support.''
    Note C: When a lessee company transports freight over the tracks of 
another carrier on the basis of a proportion of revenues under a joint 
arrangement, it shall include the entire compensation in its revenue and 
statistics, charging the appropriate joint facility expense and rental 
accounts with the amounts paid the lessor company, and the lessor 
company shall credit the corresponding accounts.
    Note D: Revenue from the transportation of caretakers of freight 
shipments, when not included as a part of the freight charges on the 
waybill covering the freight shipments, shall be credited to account 
102, ``Passenger.''
    Note E: This account shall be maintained so as to show separately 
payments and allowances for (a) terminal collection and delivery 
services when performed in connection with line-haul transportation of 
freight on the basis of freight tariff rates, further separated between 
(1) TOFC/COFC service, and (2) all other freight service; also (b) 
payments for switching services when performed in connection with line-
haul transportation of freight on the basis of switching tariffs and 
allowances out of freight rates, including the switching of empty cars 
in connection with a revenue movement, and (c) payments on basis of 
tariff rates for loading and unloading livestock.
    104 Switching. (1) This account shall include the revenue from 
switching service upon the basis of lawful tariff rates. To this account 
shall be credited the carrier's revenue upon the basis of tariff rates, 
or the carrier's allowance out of through rates, from the switching of 
cars of all kinds, loaded or empty, either locally at a station or 
within a switching district, between connecting lines, between local 
industries, or between connecting lines and local industries; revenue 
upon the basis of distinct tariff rates for ``trapcar'' and ``ferry-
car'' service and for spotting cars; also the revenue from interwork 
switching at industrial plants, and the revenue from ``penalty 
switching'' incident to the improper delivery of cars by other carriers.
    (2) To this account shall be charged amounts paid for switching when 
such switching service is provided for in the switching rate charged by 
the carrier.
    Note: ``Penalty switching'' charges paid by the carrier shall be 
included in expense account 61-32-XX, ``General--Other Expenses--
Transportation, Yard, Freight.''
    105 Water transfers. (1) This account shall include the revenue, 
from the transfer by water (ferriage, lighterage, and floatage), of 
passenger, freight, vehicles, and livestock, upon the basis of lawful 
local tariff rates.

[[Page 148]]

    (2) This account also shall include revenue from water transfers of 
other traffic, such as the revenue from towing beyond lighterage limits 
and all other towing for which an extra charge is made; insurance of 
freight afloat when billed out at other than cost; storage of freight 
afloat; grain overage in boats; pumping performed for outside parties; 
and for other similar sources.
    (3) To this account shall be charged amounts payable to other 
companies or individuals for extra lighterage, extra towing, and for all 
other service when such payments represent revenue collected and 
credited to this account and not a directed expense.
    Note: No revenue shall be included in this account for water 
transfers of passengers or shipments upon the basis of arbitraries out 
of rates for transportation involving rail line haul.
    106 Demurrage. This account shall include the revenue from the 
detention of cars incident to loading, unloading, reconsigning, and 
stops in transit upon the basis of lawful tariffs for demurrage. This 
account shall also include the revenue from the detention of trailers 
and containers used in TOFC/COFC service, incident to loading and 
unloading, upon the basis of tariff rates.
    Note: This account shall be maintained so as to reflect separately 
(1) revenue from detention of cars, and (2) revenue from detention of 
trailers and containers used in TOFC/COFC service.
    110 Incidental. This account is designed to show the amounts which 
the carrier becomes entitled to receive from services rendered 
incidentally with rail-line and water-line transportation; for the use 
of facilities of which the expenses for operation and maintenance are 
not separable from railway expenses and from incidental sources not 
provided for elsewhere. Among the items included in this account are 
revenues derived from (1) hotels and restaurants, (2) operations 
conducted at stations and on trains by individual or companies other 
than railway companies, (3) storage, (4) the sale of electric power, (5) 
renting property operated and maintained in connection with the property 
used in the carrier's transportation operations and from railway 
operations not provided for elsewhere.
    121 Joint facility, credit. This account shall include the carrier's 
proportion of revenue collected by others in connection with the 
operation of joint tracks, yards, terminals, and other facilities, 
including revenue from hotels, restaurants, grain elevators, sale of 
power, and other miscellaneous operations.

    Note A: The purpose of this account is to show the amounts of 
revenue from the operation of joint tracks, yards, terminals and other 
facilities operated by other companies, which under existing contracts 
or agreements are credited by the operating company to the tenant 
companies which participate therein. The bill rendered by any creditor 
company against a debtor company for the latter's proportion of the 
expense of maintenance and operation of joint facilities, which includes 
also a credit covering a proportion of the revenue to be paid over, 
shall show the distribution of the credit for such proportion of the 
revenue separately from the distribution of the expense of operation.
    Note B: No credits shall be made to this account representing 
amounts creditable by the operating company to primary accounts 101-103, 
105, and 110.
    122 Joint facility, debit. This account shall include that 
proportion of revenue from the operation of joint tracks, yards, 
terminals, and other facilities, which is creditable to other companies, 
including revenue from hotels, restaurants, grain elevators, sale of 
power, and other miscellaneous operations.

    Note A: The purpose of this account is to show the amount of revenue 
from operation of a terminal company or other carrier which, under the 
terms of existing contracts or agreements covering the joint use of 
tracks, yards, and other facilities, is credited to other carriers that 
participate in the benefits from such joint use. The bill rendered by a 
creditor company against a debtor company for the latter's proportion of 
expense of maintaining and operating joint facilities, which includes a 
credit covering the debtor company's proportion of the revenues from 
operation of such joint facilities, shall indicate separately the proper 
distribution of both the revenues and the expenses included in the bill, 
and such distribution shall be adhered to the debtor.
    Note B: No debits shall be made to this account representing amounts 
creditable by the operating company to primary accounts 101-103, 105, 
and 110.

[[Page 149]]

                          Other Income Accounts

    506 Revenues from property used in other than carrier operations. 
This account shall include the total revenues derived from property used 
in other than carrier operations, the cost of which is includible in 
balance-sheet account 737, ``Property used in other than carrier 
operations.''
    510 Miscellaneous rent income. (1) This account shall include such 
rents of property owned and controlled by the accounting carrier as are 
not provided for in the foregoing accounts.
    (2) This account shall be charged with the cost of maintenance of 
the property rented, also specific incidental expenses in connection 
with such property, such as the cost of negotiating contracts, 
advertising for tenants, fees paid conveyancers, collectors' 
commissions, and analogous items.

    Note A: If property the rent of which is chargeable to account 543--
``Miscellaneous rents,'' is sublet by the accounting company, the rent 
receivable therefore shall be credited to this account.
    Note B: Taxes on property the rent of which is creditable to this 
account shall be charged to account 553--``Taxes on property used in 
other than carrier operations.''
    Note C: The rent from property carried in balance-sheet account 
737--``Property used in other than carrier operations,'' shall not be 
included in this account, but in account 506--``Revenues from property 
used in other than carrier operations.''
    Note D: Rent and other income from real estate acquired for new 
lines or for additions and betterments shall be credited to the 
appropriate road and equipment accounts until the completion or coming 
into service of the property.

    519 Miscellaneous income. (1) This account shall include all items, 
not provided for elsewhere, properly creditable to income accounts 
during the current year. Among the items which shall be included in this 
account are:
    (i) Cancellation of balance sheet accounts representing unclaimed 
wages and vouchered accounts written off because of carrier's inability 
to locate the creditor.
    (ii) Profit from sale of land used for transportation purposes, of 
noncarrier property and of securities acquired for investment purposes.
    (2) Gains for extinguishment of debt shall be aggregated and, if 
material, credited to account 570 ``Extraordinary Items,'' upon approval 
by the Commission; however, gains from extinguishment of debt (excluding 
debt maturing serially), which is made to satisfy sinking fund 
requirements, shall be recorded in this account regardless of amount.
    599 Subsidy payments from preexisting contracts. This account shall 
include all payments made to the operating carrier of a subsidized line 
that (1) existed prior to the commencement of operations under a subsidy 
operating agreement and (2) would cease if freight service on the line 
were discontinued.
    (b) On-branch avoidable cost--(1) Actual and apportioned expense 
accounts.

                                Personnel
Control....................................................     10-00-00
 

    This account may be used as a control account for all accounts in 
the PERSONNEL Series: Salaries and Wages; Fringe Benefits Not Included 
in Compensation.
    Salaries and Wages--Control. This control account includes the 
compensation payable to employees for services performed. It includes 
amounts payable in connection with profit sharing and stock option plans 
that are part of employee compensation. This control account also 
includes amounts of compensation payable to employees for paid time off 
as a fringe benefit: vacation pay, holiday pay, sick pay, and other 
payments considered direct compensation for time not worked. Amounts of 
labor billed by contractors, other companies, and joint facilities, are 
not considered salaries and wages of the carrier company and are not to 
be included in this account group. Its components shall be distributed 
to the following accounts in accordance with instruction 1-14 of Part 
1201, Subpart A:

Salaries and wages--way and structures--running: Freight...     11-11-XX
 

    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's roadway and track on the line of road and 
outside of classification yards. Compensation payable to officers and 
technical and clerical employees shall only be assigned to Way and 
Structures--Other. This account shall be subdivided by the following 
functions:

                   Repair and maintenance
 
Roadway....................................................     11-11-10
Tunnels and subways........................................     11-11-11
Bridges and culverts.......................................     11-11-12
Track laying and surfacing.................................     11-11-17
Signals and interlockers...................................     11-11-19
Highway grade crossings....................................     11-11-22

[[Page 150]]

 
Dismantling retired property...............................     11-11-39
Road property and equipment damaged........................     11-11-48
Other--other...............................................     11-11-99
Salaries and wages--way and structures--switching: Freight.     11-12-XX
 

    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's roadway and track within classification 
yards and stations. Compensation payable to officers and technical and 
clerical employees shall be assigned to Way and Structures--Other. This 
account shall be subdivided by the following functions:

                   Repair and maintenance
 
Roadway....................................................     11-12-10
Tunnels and subways........................................     11-12-11
Bridges and culverts.......................................     11-12-12
Track laying and surfacing.................................     11-12-17
Signals and interlockers...................................     11-12-19
Highway grade crossings....................................     11-12-22
Dismantling retired property...............................     11-12-39
Road property and equipment damaged........................     11-12-48
Other--other...............................................     11-12-99
Salaries and wages--way and structures--other: Freight.....     11-13-XX
 

    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's structures other than roadway and track. 
Each administration account (functions 02-06) includes the compensation 
payable to all officers and technical and clerical employees associated 
with the Way and Structures Activity. This account shall be subdivided 
by the following functions:

                       Administration
 
Track......................................................     11-13-02
Bridges and buildings......................................     11-13-03
Signals....................................................     11-13-04
Communications.............................................     11-13-05
Other......................................................     11-13-06
 
                   Repair and maintenance
 
Communication systems......................................     11-13-20
Electric power systems.....................................     11-13-21
Station and office buildings...............................     11-13-23
Shop buildings--locomotives................................     11-13-24
Shop buildings--freight cars...............................     11-13-25
Shop buildings--other......................................     11-13-26
Locomotive servicing facilities............................     11-13-27
Miscellaneous buildings and structures.....................     11-13-28
Coal terminals.............................................     11-13-29
Ore terminals..............................................     11-13-30
TOFC/COFC terminals........................................     11-13-31
Other marine terminals.....................................     11-13-32
Motor vehicle loading and distribution facilities..........     11-13-33
Facilities for other specialized services operations.......     11-13-35
Roadway machines...........................................     11-13-36
Small tools and supplies...................................     11-13-37
Snow removal...............................................     11-13-38
Dismantling retired property...............................     11-13-39
Road property and equipment damaged........................     11-13-48
Other--other...............................................     11-13-99
Salaries and wages--equipment--locomotives: Freight........     11-21-XX
 

    This account includes the compensation payable to all officers and 
technical and clerical employees, repair and maintenance employees, and 
others who are associated with the repair and maintenance of 
locomotives, whether owned by the carrier or by others. This account 
shall be subdivided by the following functions:

Administration--general....................................     11-21-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     11-21-39
Shop machinery.............................................     11-21-40
Locomotives................................................     11-21-41
Road property and equipment damaged........................     11-21-48
Other--other...............................................     11-21-99
Salaries and Wages--Equipment--Freight Cars: Freight.......     11-22-XX
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, repair and maintenance employees, and 
others, who are associated with the repair and maintenance of freight 
cars, whether owned by the carrier or by others. This account shall be 
subdivided by the following functions:

Administration--general....................................     11-22-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     11-22-39
Shop machinery.............................................     11-22-40
Freight cars...............................................     11-22-42
Road property and equipment damaged........................     11-22-48
Other--other...............................................     11-22-99
Salaries and wages--equipment--other equipment: Freight....     11-23-XX
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, repair and maintenance employees, and 
others, who are associated with the repair and maintenance of equipment 
other than locomotives and freight cars, whether owned by the carrier or 
by others. This account shall be subdivided by the following functions:

Administration--general....................................     11-23-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     11-23-39
Shop machinery.............................................     11-23-40
Trucks, trailers, containers in revenue service............     11-23-43
Floating equipment--revenue service........................     11-23-44
Passenger and other revenue equipment......................     11-23-45
Computers and data processing equipment....................     11-23-46
Work and other non-revenue equipment.......................     11-23-47
Road property and equipment damaged........................     11-23-48
Other--other...............................................     11-23-99
Salaries and wages--transportation--train: Freight.........     11-31-XX
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees, who are associated with the dispatching and 
operation of freight trains over the roadway and outside of 
classification yards. This account shall be subdivided by the following 
functions:

Administration--general....................................     11-31-01
 
                         Operations
 
Engine crews...............................................     11-31-56
Train crews................................................     11-31-57
Dispatching trains.........................................     11-31-58

[[Page 151]]

 
Operating switches, signals, interlockers, retarders, humps     11-31-59
Operating drawbridges......................................     11-31-60
Highway crossing protection................................     11-31-61
Train inspection and lubrication...........................     11-31-62
Clearing wrecks............................................     11-31-63
Locomotive fuel............................................     11-31-67
Electric power purchased/produced for motive power.........     11-31-68
Servicing locomotives......................................     11-31-69
Other--other...............................................     11-31-99
Salaries and wages--transportation--yard: Freight..........     11-32-XX
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees, who are associated with the movement of freight 
cars within classification yards and in terminal switching and transfer 
service. This account shall be subdivided by the following functions:

Administration--general....................................     11-32-01
 
                         Operations
 
Operating switches, signals, interlockers, retarders, humps     11-32-59
Clearing wrecks............................................     11-32-63
Switch crews...............................................     11-32-64
Controlling operations.....................................     11-32-65
Yard and terminal clerical.................................     11-32-66
Locomotive fuel............................................     11-32-67
Electrical power purchased/produced for motive power.......     11-32-68
Servicing locomotives......................................     11-32-69
Other--other...............................................     11-32-99
Salaries and wages--transportation--train and yard common:      11-33-XX
 Freight...................................................
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees performing functions incurred on behalf of both 
train and yard operations. This account shall be subdivided by the 
following functions:

Operations.................................................  ...........
Cleaning car interiors.....................................     11-33-70
Adjusting and transferring loads...........................     11-33-71
Car loading devices and grain doors........................     11-33-72
Salaries and wages--transportation--specialized services:       11-34-XX
 Freight...................................................
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees who are associated with operating services which 
are specialized in nature and in cost characteristics. The specialized 
services designated by the Board appear within the definition of 
specialized services. This account shall be subdivided by the following 
functions:

Administration--general....................................     11-34-01
 
                         Operations
 
Pickup and delivery, marine line haul, and rail substitute      11-34-73
 service...................................................
Loading, unloading, and local marine.......................     11-34-74
Protective service.........................................     11-34-75
Other--other...............................................     11-34-99
Salaries and wages--transportation--administrative support:     11-35-XX
 Freight...................................................
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees, who are associated with providing direct 
administrative support for the Transportation Activity. For further 
clarification refer to the definition of the Administrative Support 
Operations Subactivity contained in Part 1201, Subpart A. This account 
shall be subdivided by the following functions:

Administration--general....................................     11-35-01
 
                         Operations
 
Clerical and accounting employees..........................     11-35-76
Communication systems operations...........................     11-35-77
Loss and damage claims processing..........................     11-35-78
Other--other...............................................     11-35-99
Salaries and wages--general and administrative: Freight....     11-61-XX
 

    This account includes the compensation payable to all employees who 
are associated with overall administration or other general support for 
carrier operations. Overall administration includes executive, legal, 
financial, treasury, accounting, budgeting, taxation, corporate 
planning, costing, marketing, advertising, traffic, corporate secretary, 
public relations, real estate, insurance administration, personnel 
administration, pension plan administration, general purchasing, labor 
relations, internal auditing, industrial engineering, and regulatory 
reporting. For further clarification refer to the definition of the 
General and Administrative Activity contained in Part 1201, Subpart A. 
This account shall be subdivided by the following functions:

Administration--general....................................     11-61-01
 
                          General
 
Accounting, auditing, finance..............................     11-61-86
Management services and data processing....................     11-61-87
Marketing..................................................     11-61-88
Sales......................................................     11-61-89
Industrial development.....................................     11-61-90
Personnel and labor relations..............................     11-61-91
Legal and secretarial......................................     11-61-92
Public relations and advertising...........................     11-61-93
Research and development...................................     11-61-94
Other--other...............................................     11-61-99
Fringe benefits not included in compensation--control......     12-00-00
 

    This control account includes amounts payable to others, or other 
costs charged to expense, for employee benefits which are not considered 
part of direct compensation. These benefits include the carrier portions 
of Railroad Retirement contributions, pension expense, unemployment 
taxes, dental plans, health plans, hospitalization insurance, life 
insurance, subsidies for employee lunchrooms, company entertainment 
facilities for personal use, and other benefits to employees that are 
not includable in direct compensation. They exclude travel expense on 
company business, casualties, workmen's compensation, as well as dues, 
memberships,

[[Page 152]]

and similar items when the direct beneficiary is clearly the company 
rather than the employee

Fringe benefits not included in compensation--way and           12-11-00
 structures--running: Freight..............................
 

    This account includes amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the repair 
and maintenance of the carrier's roadway and track on the line of road 
and outside of classification yards.

Fringe benefits not included in compensation--way and           12-12-00
 structures--switching: Freight............................
 

    This account includes amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with repair and 
maintenance of the carrier's roadway and track within classification 
yards and stations.

Fringe benefits not included in compensation--way and           12-13-00
 structures--other: Freight................................
 

    This account includes amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the repair 
and maintenance of the carrier's structures other than roadway and 
track, and who are associated with the Administration of the Way and 
Structures Activity.

Fringe benefits not included in compensation--equipment--       12-21-00
 locomotives: Freight......................................
 

    This account includes amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the repair 
and maintenance of locomotives, whether owned by the carrier or by 
others.

Fringe benefits not included in compensation--equipment--       12-22-00
 freight cars: Freight.....................................
 

    This account includes amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the repair 
and maintenance of freight cars, whether owned by the carrier or by 
others.

Fringe benefits not included in compensation--equipment--       12-23-00
 other equipment:..........................................
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the repair 
and maintenance of equipment other than locomotives and freight cars, 
whether owned by the carrier or by others.

Fringe benefits not included in compensation--                  12-31-00
 transportation--train: Freight............................
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the 
dispatching and operating of freight trains over the roadway and outside 
of classification yards.

Fringe benefits not included in compensation--                  12-32-00
 transportation--yard: Freight.............................
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the 
movement of freight cars within classification yards and in terminal 
switching and transfer service.

Fringe benefits not included in compensation--                  12-33-00
 transportation--train and yard Common: Freight............
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees performing functions incurred on 
behalf of both train and yard operations.

Fringe benefits not included in compensation--                  12-34-00
 transportation--specialized services: Freight.............
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with operating 
services which are specialized in nature and in cost characteristics. 
The specialized services designated by the Board appear within the 
definition of specialized services.

Fringe benefits not included in compensation--                  12-35-00
 transportation--administrative support: Freight...........
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with providing 
direct administrative support for the Transportation Activity. For 
further clarification refer to the definition of the Administrative 
Support Operations Subactivity contained in Part 1201, Subpart A.

Fringe benefits not included in compensation--general and       12-61-00
 administrative: Freight...................................
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who provide overall administration 
or other general support for carrier operations. Overall administration 
includes executive, legal, financial, treasury, accounting, budgeting, 
taxation, corporate planning, costing, marketing, advertising, traffic, 
corporate secretary, public relations, real estate, insurance 
administration, personnel administration, pension plan administration, 
general

[[Page 153]]

purchasing, labor relations, internal auditing, industrial engineering, 
and regulatory reporting. For further clarification refer to the 
definition of the General and Administrative Activity contained in Part 
1201, Subpart A.

                                Materiel
Control....................................................     20-00-00
 

    This account may be used as a control account for the MATERIEL 
series: Materials, Tools, Supplies, Fuels, Lubricants.

Materials, tools, supplies, fuels, lubricants--Control.....     21-00-00
 

    This account group includes the cost of items installed or 
commodities consumed which are charged to expense in connection with 
carrier operations. This account includes charges to expense for all 
materials, small tools, supplies, fuels, lubricants, purchased standard 
stationery and forms, freight-in on materials and supplies, and similar 
items. This account excludes purchased services such as utilities, 
communications, postage and other items of similar nature.

Materials, tools, supplies, fuels, lubricants--way and          21-11-XX
 structures--Running: Freight..............................
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's roadway and track on the line of the road and outside of 
classification yards. This account includes charges to expense for all 
materials, small tools, supplies, fuels, lubricants, purchased standard 
stationery and forms, freight-in on materials, and supplies, and similar 
items. Its components shall be distributed to the following functions in 
accordance with instruction 1-8 of Part 1201, Subpart A:

                   Repair and maintenance
 
Roadway....................................................     21-11-10
Tunnels and subways........................................     21-11-11
Bridges and culverts.......................................     21-11-12
Ties.......................................................     21-11-13
Rails......................................................     21-11-14
Other track material.......................................     21-11-15
Ballast....................................................     21-11-16
Track laying and surfacing.................................     21-11-17
Signals and interlockers...................................     21-11-19
Highway grade crossings....................................     21-11-22
Dismantling retired property...............................     21-11-39
Road property and equipment damaged........................     21-11-48
Other--other...............................................     21-11-99
Materials, tools, supplies, fuels, lubricants--way and          21-12-XX
 structures--switching: Freight............................
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's roadway and track within classification yards and stations. 
This account includes charges to expense for all materials, small tools, 
supplies, fuels, lubricants, purchased standard stationery and forms, 
freight-in on materials and supplies, and similar items. Its components 
shall be distributed to the following functions in accordance with 
instruction 1-8 of Part 1201, Subpart A:

                   Repair and maintenance
 
Roadway....................................................     21-12-10
Tunnels and subways........................................     21-12-11
Bridges and culverts.......................................     21-12-12
Ties.......................................................     21-12-13
Rails......................................................     21-12-14
Other track material.......................................     21-12-15
Ballast....................................................     21-12-16
Track laying and surfacing.................................     21-12-17
Signals and interlockers...................................     21-12-19
Highway grade crossings....................................     21-12-22
Dismantling retired property...............................     21-12-39
Road property and equipment damaged........................     21-12-48
Other--other...............................................     21-12-99
Materials, tools, supplies, fuels, lubricants--way and          21-13-XX
 structures--other: Freight................................
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's structures not provided for in running or switching. This 
account includes charges to expense for all materials, small tools, 
supplies, fuels, lubricants, purchased standard stationery and forms, 
freight-in on materials and supplies, and similar items. Its components 
shall be distributed to the following functions in accordance with 
instruction 1-8 of Part 1201, Subpart A:

                       Administration
 
Track......................................................     21-13-02
Bridges and buildings......................................     21-13-03
Signals....................................................     21-13-04
Communications.............................................     21-13-05
Other......................................................     21-13-06
 
                   Repair and maintenance
 
Communication systems......................................     21-13-20
Electric power systems.....................................     21-13-21
Station and office buildings...............................     21-13-23
Shop buildings--locomotives................................     21-13-24
Shop buildings--freight cars...............................     21-13-25
Shop buildings--other equipment............................     21-13-26
Locomotive servicing facilities............................     21-13-27
Miscellaneous buildings and structures.....................     21-13-28
Coal terminals.............................................     21-13-29
Ore terminals..............................................     21-13-30
TOFC/COFC terminals........................................     21-13-31
Other marine terminals.....................................     21-13-32
Motor vehicle loading and distribution facilities..........     21-13-33
Facilities for other specialized services operations.......     21-13-35
Roadway machines...........................................     21-13-36
Small tools and supplies...................................     21-13-37
Snow removal...............................................     21-13-38
Dismantling retired property...............................     21-13-39
Road property and equipment damaged........................     21-13-48
Other--other...............................................     21-13-99
Materials, tools, supplies, fuels, lubricants--equipment--      21-21-XX
 locomotives: Freight......................................
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are

[[Page 154]]

consumed in the performance or support of the repair and maintenance of 
locomotives, whether owned by the carrier or by others. This account 
includes charges to expense for all materials, small tools, supplies, 
fuels, lubricants, purchased standard stationery and forms, freight-in 
on materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with instruction 1-
8 of Part 1201, Subpart A:

Administration--General....................................     21-21-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     21-21-39
Machinery..................................................     21-21-40
Locomotives................................................     21-21-41
Road property and equipment................................     21-21-48
Other--other...............................................     21-21-99
Materials, tools, supplies, fuels, lubricants--equipment--      21-22-XX
 freight cars: Freight.....................................
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of freight 
cars, whether owned by the carrier or by others. This account includes 
charges to expense for all materials, small tools, supplies, fuels, 
lubricants, purchased standard stationery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with instruction 1-
8 of Part 1201, Subpart A:

Administration--general....................................     21-22-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     21-22-39
Machinery..................................................     21-22-40
Freight cars...............................................     21-22-42
Road property and equipment damaged........................     21-22-48
Other--other...............................................     21-22-99
Materials, tools, supplies, fuels, lubricants--equipment--      21-23-XX
 other equipment: Freight..................................
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of equipment 
other than locomotives and freight cars, whether owned by the carrier or 
by others. This account includes charges to expense for all materials, 
small tools, supplies, fuels, lubricants, purchased standard stationery 
and forms, freight-in on materials and supplies, and similar items. Its 
components shall be distributed to the following functions in accordance 
with instruction 1-8 of Part 1201, Subpart A:

Administration--general....................................     21-23-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     21-23-39
Machinery..................................................     21-23-40
Trucks, trailers, containers in revenue service............     21-23-43
Floating equipment--revenue service........................     21-23-44
Passenger and other revenue equipment......................     21-23-45
Computers and data processing equipment....................     21-23-46
Work and other nonrevenue equipment........................     21-23-47
Road property and equipment damaged........................     21-23-48
Other--other...............................................     21-23-99
Materials, tools, supplies, fuels, lubricants--                 21-31-XX
 transportation--train: Freight............................
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
association with the dispatching and operation of freight trains over 
the roadway and outside of classification yards. This account includes 
charges to expense for all materials, small tools, supplies, fuels, 
lubricants, purchased standard stationery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with instruction 1-
8 of Part 1201, Subpart A:

Administration--general....................................     21-31-01
 
                         Operations
 
Engine crews...............................................     21-31-56
Train crews................................................     21-31-57
Dispatching trains.........................................     21-31-58
Operating switches, signals, interlockers, retarders, humps     21-31-59
Operating drawbridges......................................     21-31-60
Highway crossing protection................................     21-31-61
Train inspection and lubrication...........................     21-31-62
Clearing wrecks............................................     21-31-63
Locomotive fuels...........................................     21-31-67
Electric power purchased/produced for motive power.........     21-31-68
Servicing locomotives......................................     21-31-69
Other--other...............................................     21-31-99
Materials, tools, supplies, fuels, lubricants--                 21-32-XX
 transportation--yard: Freight.............................
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
association with the movement of freight cars within classification 
yards and in terminal switching and transfer service. This account 
includes charges to expense for all materials, small tools, supplies, 
fuels, lubricants, purchased standard statonery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with instruction 1-
8 of Part 1201, Subpart A:

Administration--general....................................     21-32-01
 
                         Operations
 
Operating switches, signals, interlockers, retarders, humps     21-32-59
Clearing wrecks............................................     21-32-63
Switch crews...............................................     21-32-64
Controlling operations.....................................     21-32-65
Yard and terminal clerical.................................     21-32-66
Locomotive fuel............................................     21-32-67
Electric power purchased/produced for motive power.........     21-32-68
Servicing locomotives......................................     21-32-69
Other--other...............................................     21-32-99
Materials, tools, supplies, fuels, lubricants--                 21-33-XX
 transportation--train and yard common: Freight............
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are

[[Page 155]]

consumed on behalf of both train and yard operations. This account 
includes charges to expense for all materials, small tools, supplies, 
fuels, lubricants, purchased standard stationery and forms, freight-in 
on materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with instruction 1-
8 of Part 1201, Subpart A:

                         Operations
 
Cleaning car interiors.....................................     21-33-70
Adjusting, transferring loads..............................     21-33-71
Car loading devices and grain doors........................     21-33-72
Materials, tools, supplies, fuels, lubricants--                 21-34-XX
 transportation--specialized services: Freight.............
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
operating services which are specialized in nature and in cost 
characteristics. The specialized services designated by the Commission 
appear within the definition of specialized services. This account shall 
be subdivided by the following functions:

Administration--general....................................     21-34-01
 
                         Operations
 
Pick up and delivery, marine line haul, and rail substitute     21-34-73
 service...................................................
Loading, unloading, and local marine.......................     21-34-74
Protective services........................................     21-34-75
Other--other...............................................     21-34-99
Materials, tools, supplies, fuels, lubricants--                 21-35-XX
 transportation--administra- tive support: Freight.........
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
association with providing direct administrative support for the 
Transportation Activity. For further clarification refer to the 
definition of the Administrative Support Operations Subactivity 
contained in Part 1201, Subpart A. This account shall be subdivided by 
the following functions.

Administration--general....................................     21-35-01
 
                         Operations
 
Clerks, accounting employees...............................     21-35-76
Communication systems operations...........................     21-35-77
Loss and damage claims processing..........................     21-35-78
Other--other...............................................     21-35-99
Materials, tools, supplies, fuels, lubricants--general and      21-61-XX
 administrative: Freight...................................
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
providing overall administration or other general support for carrier 
operations. For further clarification refer to the definition of the 
General and Administrative Activity contained in Part 1201, Subpart A. 
This account shall be subdivided by the following functions:

Administration--general....................................     21-61-01
 
                          General
 
Accounting, auditing, finance..............................     21-61-86
Management services and data processing....................     21-61-87
Marketing..................................................     21-61-88
Sales......................................................     21-61-89
Industrial development.....................................     21-61-90
Personnel and labor relations..............................     21-61-91
Legal and secretarial......................................     21-61-92
Public relations and advertising...........................     21-61-93
Research and development...................................     21-61-94
Other--other...............................................     21-61-99
 


                           Purchased Services
Control....................................................     30-00-00
 

    This account may be used as a control account for all accounts in 
the PURCHASED SERVICES series:

Lease rentals--Credit......................................  ...........
Joint facility rent--Debit.................................  ...........
Joint facility rent--Credit................................  ...........
Other rents--Debit.........................................  ...........
Other rents--Credit........................................  ...........
Joint facility--Debit......................................  ...........
Joint facility--Credit.....................................  ...........
Repairs billed by others--Debit............................  ...........
Repairs billed to others--Credit...........................  ...........
Other purchased services...................................  ...........
Lease rentals--debit--control..............................     31-00-00
 

    This control account includes the rentals of road property and 
equipment with terms of 30 days or more. This account excludes joint 
facility and joint trackage rents, insurance and maintenance elements of 
lease payments, and all elements of capital leases as defined in FASB 
Statement No. 13. The components of this natural expense will be 
distributed to the following accounts in accordance with instruction 1-8 
of Part 1201, Subpart A:

Lease rentals--debit--way and structures--running: freight.     31-11-00
Lease rentals--debit--way and structures--switching:            31-12-00
 freight...................................................
Lease rentals--debit--way and structures--other: freight...     31-13-00
Lease rentals--debit--equipment--locomotives: freight......     31-21-00
Lease rentals--debit--equipment--freight cars: freight.....     31-22-00
Lease rentals--debit--equipment--other equipment: freight..     31-23-00
Lease rentals--credit--control.............................     32-00-00
 

    This control account includes the rentals of owned property and 
equipment or subleases of leased road property and equipment with terms 
of from 30 days to one year. Longer term leases are indicative of a non-
carrier operation and all revenues and expenses related to such property 
and equipment should be classified accordingly and excluded from 
railroad operations. This account excludes joint facilities and joint 
trackage, capital leases, and portions of lease receipts covering 
maintenance and insurance. The components of this natural expense 
account will be distributed to the following accounts in accordance with 
instruction 1-8 of Part 1201, Subpart A:

Lease rentals--credit--way and structures--running: freight     32-11-00
Lease rentals--credit--way and structures--switching:           32-12-00
 freight...................................................

[[Page 156]]

 
Lease rentals--credit--way and structures--other: freight..     32-13-00
Lease rentals--credit--equipment--locomotives: freight.....     32-21-00
Lease rentals--credit--equipment--freight cars: freight....     32-22-00
Lease rentals--credit--equipment--other equipment: freight.     32-23-00
Joint facility rents--debit--control.......................     33-00-00
 

    This control account includes amounts payable accrued as rent for 
equipment, tracks, yards, terminals, and other facilities owned or 
controlled by other carriers, companies, or individuals, and in the 
joint use of which the accounting company participates. Amounts paid or 
payable by the accounting company in reimbursement for taxes on property 
jointly used shall be charged to this account.
    Note: The cost of maintenance, operation, or administration of joint 
facilities, chargeable to the accounting company, shall be charged to 
the various joint facility accounts (37-XX-00). When the compensation 
for the use of joint facilities is a fixed amount or is based upon a 
charge per ton, car, or other unit, it shall be fairly apportioned 
between this account and Joint Facility--Dr. (37-XX-00). This 
apportionment shall be made by the operating company, and shall be 
followed by the accounting company. The components of this natural 
expense consist of the following accounts:

Joint facility rents--debit--way and structures--running:       33-11-00
 Freight...................................................
Joint facility rents--debit--way and structures--switching:     33-12-00
 Freight...................................................
Joint facility rents--debit--way and structures--other:         33-13-00
 Freight...................................................
Joint facility rents--debit--equipment--locomotives:            33-21-00
 Freight...................................................
Joint facility rents--debit--equiment--freight cars:            33-22-00
 Freight...................................................
Joint facility rents--debit--equipment--other equipment:        33-23-00
 Freight...................................................
Joint facility rents--credit--control......................     34-00-00
 

    This control account includes amounts receivable accrued for rent of 
equipment, tracks, yards, terminals and other facilities owned or 
controlled by the accounting company and used jointly with other 
companies or individuals. Amounts receivable from other companies in 
reimbursement for taxes on property jointly used shall be credited to 
this account.
    Note: The portion of the cost of maintenance, operation, or 
administration of joint facilities recoverable from others shall be 
credited to the various joint facility accounts (38-XX-00). When the 
compensation for the use of joint facilities is a fixed amount or is 
based upon a charge per ton, car, or other unit, it shall be fairly 
apportioned by the creditor between this account and Joint Facility--
credit (28-XX-00).

Joint facility rents--credit--way and structures--running:      34-11-00
 Freight...................................................
Joint facility rents--credit--way and structures--              34-12-00
 switching: Freight........................................
Joint facility rents--credit--way and structures--other:        34-13-00
 Freight...................................................
Joint facility rents--credit--equipment--locomotives:           34-21-00
 Freight...................................................
Joint facility rents--credit--equipment--freight cars:          34-22-00
 Freight...................................................
Joint facility rents--credit--equipment--other equipment:       34-23-00
 Freight...................................................
Other rents--debit--control................................     35-00-00
 

    This account includes the rents with terms of less than 30 days 
which are not renewed. This account includes all time and mileage 
payments for interchange locomotive, freight car, and other revenue 
equipment hire. The components of this account will be distributed to 
the following accounts in accordance with instruction 1-8 of Part 1201, 
Subpart A:

Other rents--debit--way and structures--running: Freight:       35-11-00
 Freight...................................................
Other rents--debit--way and structures--switching: Freight.     35-12-00
Other rents--debit--way and structures--other: Freight.....     35-13-00
Other rents--debit--equipment--locomotives: Freight........     35-21-00
Other rents--debit--equipment--freight cars: Freight.......     35-22-00
Other rents--debit--equipment--other equipment: Freight....     35-23-00
Other rents--credit--control...............................     36-00-00
 

    This account includes rents with terms of less than 30 days which 
are not renewed. This account includes all time and mileage receipts for 
interchanged locomotive, freight car, and other revenue equipment hire. 
The components of this account will be distributed to the following 
accounts in accordance with instruction 1-8 of Part 1201, Subpart A:

Other rents--credit--way and structures--running: Freight..     36-11-00
Other rents--credit--way and structures--switching: Freight     36-12-00
Other rents--credit--way and structures--other: Freight....     36-13-00
Other rents--credit--equipment--locomotives: Freight.......     36-21-00
Other rents--credit--equipment--freight cars: Freight......     36-22-00
Other rents--credit--equipment--other equipment: Freight...     36-23-00
Joint facility--debit--control.............................     37-00-00
 

    This account includes joint trackage and joint facility costs, 
exclusive of rents, payable by the railroad to others. The components of 
this account will be distributed to the following accounts in accordance 
with instruction 1-8 of Part 1201, Subpart A:

Joint Facility--debit--way and structures--running: Freight     37-11-00
Joint Facility--debit--way and structures--switching:           37-12-00
 Freight...................................................
Joint Facility--debit--way and structures--other: Freight..     37-13-00
Joint facility--debit--equipment--locomotives: Freight.....     37-21-00
Joint facility--debit--equipment--freight cars: Freight....     37-22-00
Joint facility--debit--equipment--other equipment: Freight.     37-23-00

[[Page 157]]

 
Joint facility--debit--transportation--train: Freight......     37-31-00
Joint facility--debit--transportation--yard: Freight.......     37-32-00
Joint facility--debit--transportation--specialized              37-34-00
 services: Freight.........................................
Joint facility--debit--transportation--administrative           37-35-00
 support: Freight..........................................
Joint facility--debit--general and administrative: Freight.     37-61-00
Joint facility--credit--control............................     38-00-00
 

    This account includes joint trackage and joint facility costs, 
exclusive of rents, payable by others to the railroad. The components of 
this account will be distributed to the following accounts in accordance 
with instruction 1-8 of Part 1201, Subpart A:

Joint facility--credit--way and structures--running:            38-11-00
 Freight...................................................
Joint facility--credit--way and structures--switching:          38-12-00
 Freight...................................................
Joint facility--credit--way and structures--other: Freight.     38-13-00
Joint facility--credit--equipment--locomotives: Freight....     38-21-00
Joint facility--credit--equipment--freight cars: Freight...     38-22-00
Joint facility--credit--equipment--other equipment: Freight     38-23-00
Joint facility--credit--transportation--train: Freight.....     38-31-00
Joint facility--credit--transportation--yard: Freight......     38-32-00
Joint facility--credit--transportation--specialized             38-34-00
 services: Freight.........................................
Joint facility--credit--transportation--administrative          38-35-00
 support: Freight..........................................
Joint facility--credit--general and administrative: Freight     38-61-00
Repairs billed by others--debit--control...................     39-00-00
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance of the reporting railroad's property and 
equipment. The components of this account shall be distributed to the 
following accounts in accordance with instruction 1-8 of Part 1201, 
Subpart A:

Repairs billed by others--debit--way and structures--           39-11-XX
 running: Freight..........................................
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance of the reporting railroad's property associated 
with the carrier's roadway and track on the line of road and outside of 
classification yards. This account shall be subdivided by the following 
functions:

                   Repair and maintenance
 
Roadway....................................................     39-11-10
Tunnels and subways........................................     39-11-11
Bridges and culverts.......................................     39-11-12
Track laying and surfacing.................................     39-11-17
Signals and interlockers...................................     39-11-19
Highway grade crossings....................................     39-11-22
Road property and equipment damaged........................     39-11-48
Repairs billed by others--debit--way and structures--           39-12-XX
 switching: Freight........................................
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance of the reporting railroad's property associated 
with the carrier's roadway and track within classification yards and 
stations. This account shall be subdivided by the following functions:

                   Repair and maintenance
 
Roadway....................................................     39-12-10
Tunnels and subways........................................     39-12-11
Bridges and culverts.......................................     39-12-12
Track laying and surfacing.................................     39-12-17
Signals and interlockers...................................     39-12-19
Highway grade crossings....................................     39-12-22
Road property and equipment damaged........................     39-12-48
Repairs billed by others--debit--way and structures--other:     39-13-XX
 Freight...................................................
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance of the carrier's structures other than roadway 
and track. This account shall be subdivided by the following functions:

                   Repair and maintenance
 
Communication systems......................................     39-13-20
Electric power systems.....................................     39-13-21
Station and office buildings...............................     39-13-23
Shop buildings--locomotives................................     39-13-24
Shop buildings--freight cars...............................     39-13-25
Shop buildings--other equipment............................     39-13-26
Locomotive servicing facilities............................     39-13-27
Miscellaneous buildings and structures.....................     39-13-28
Coal terminals.............................................     39-13-29
Ore terminals..............................................     39-13-30
TOFC/COFC terminals........................................     39-13-31
Other marine terminals.....................................     39-13-32
Motor vehicle loading and distribution facilites...........     39-13-33
Facilities for other specialized services operations.......     39-13-35
Roadway machines...........................................     39-13-36
Small tools and supplies...................................     39-13-37
Snow removal...............................................     39-13-38
Road property and equipment damaged........................     39-13-48
Repairs billed by others--debit--equipment--locomotives:        39-21-XX
 Freight...................................................
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance under the locomotive subactivity. This account 
shall be subdivided by the following functions:

                   Repair and maintenance
 
Machinery..................................................     39-21-40
Locomotives................................................     39-21-41
Road property and equipment damaged........................     39-21-48
Repairs billed by others--debit--equipment--freight cars:       39-22-XX
 Freight...................................................
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance under the freight car subactivity. This account 
shall be subdivided by the following function:

                   Repair and maintenance
 
Machinery..................................................     39-22-40
Freight cars...............................................     39-22-42
Road property and equipment damaged........................     39-22-48
Repairs billed by others--debit--equipment--other               39-23-XX
 equipment: Freight........................................
 

    This account includes amounts payable by the railroad to others for 
the repair and maintenance of equipment not pertaining to the locomotive 
or freight car subactivity. This account shall be subdivided by the 
following functions:

[[Page 158]]



                   Repair and maintenance
 
Machinery..................................................     39-23-40
Trucks, trailers, and containers in revenue service........     39-23-43
Floating equipment--revenue service........................     39-23-44
Passenger and other revenue equipment......................     39-23-45
Computers and data processing equipment....................     39-23-46
Work and other nonrevenue equipment........................     39-23-47
Road property and equipment damaged........................     39-23-48
Repairs billed to others--credit--control..................     40-00-00
 

    This control account includes amounts payable by others to the 
railroad for repair and maintenance of others' road property and 
equipment. The components of this account shall be distributed to the 
following accounts in accordance with instruction 1-8 of Part 1201, 
Subpart A:

Repairs billed to others--credit--way and structures--          40-11-XX
 running: Freight..........................................
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' roadway and track on the line 
of road and outside of classification yards. This account shall be 
subdivided by the following functions:

                   Repair and maintenance
 
Roadway....................................................     40-11-10
Tunnels and subways........................................     40-11-11
Bridges and culverts.......................................     40-11-12
Track laying and surfacing.................................     40-11-17
Signals and interlockers...................................     40-11-19
Highway grade crossings....................................     40-11-22
Road property and equipment damaged........................     40-11-48
Repairs billed to others--credit--way and structures--          40-12-XX
 switching: Freight........................................
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' roadway and track within 
classification yards and stations. This account shall be subdivided by 
the following functions:

                   Repair and maintenance
 
Roadway....................................................     40-12-10
Tunnels and subways........................................     40-12-11
Bridges and culverts.......................................     40-12-12
Track laying and surfacing.................................     40-12-17
Signals and interlockers...................................     40-12-19
Highway grade crossings....................................     40-12-22
Road property and equipment damaged........................     40-12-48
Repairs billed to others--credit--way and structures--          40-13-XX
 other: Freight............................................
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' structures other than roadway 
and track. This account shall be subdivided by the following functions:

                   Repair and maintenance
 
Communication systems......................................     40-13-20
Electric power systems.....................................     40-13-21
Station and office buildings...............................     40-13-23
Shop buildings--locomotives................................     40-13-24
Shop buildings--freight cars...............................     40-13-25
Shop buildings--other equipment............................     40-13-26
Locomotive servicing facilities............................     40-13-27
Miscellaneous buildings and structures.....................     40-13-28
Coal terminals.............................................     40-13-29
Ore terminals..............................................     40-13-30
TOFC/COFC terminals........................................     40-13-31
Other marine terminals.....................................     40-13-32
Motor vehicle loading and distribution facilities..........     40-13-33
Facilities for other specialized services operations.......     40-13-35
Roadway machines...........................................     40-13-36
Small tools and supplies...................................     40-13-37
Snow removal...............................................     40-13-38
Road property and equipment damaged........................     40-13-48
Repairs billed to others--credit--equipment--locomotives:       40-21-XX
 Freight...................................................
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' locomotives. This account 
shall be subdivided by the following functions:

                   Repair and maintenance
 
Machinery..................................................     40-21-40
Locomotives................................................     40-21-41
Road property and equipment damaged........................     40-21-48
Repairs billed to others--credit--equipment--freight cars:      40-22-XX
 Freight...................................................
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' freight cars. This account 
shall be subdivided by the following functions:

                   Repair and maintenance
 
Machinery..................................................     40-22-40
Freight cars...............................................     40-22-42
Road property and equipment damaged........................     40-22-48
Repairs billed to others--credit--equipment--other              40-23-XX
 equipment: Freight........................................
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' other equipment. This account 
shall be subdivided by the following functions:

                   Repair and maintenance
 
Machinery..................................................     40-23-40
Trucks, trailers, and containers in revenue service........     40-23-43
Floating equipment--revenue service........................     40-23-44
Passenger and other revenue equipment......................     40-23-45
Computers and data processing equipment....................     40-23-46
Work and other non-revenue equipment.......................     40-23-47
Road property and equipment damaged........................     40-23-48
Other purchased services--control..........................     41-00-00
 

    This control account includes amounts charged or credited to 
operating expenses for purchased advertising; purchased printing; 
outside professional services such as legal, accounting, audit, 
engineering, and consulting; payments for detour of trains; utilities, 
telephone, postage, subscriptions, communications, purchased electric 
power for train and locomotive propulsion; and other services purchased. 
The components of this account shall be distributed to the following 
accounts in accordance with instruction 1-8 of Part 1201, Subpart A:

Other purchased services--way and structures--running:          41-11-XX
 Freight...................................................
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

[[Page 159]]



                   Repair and maintenance
 
Roadway....................................................     41-11-10
Tunnels and subways........................................     41-11-11
Bridges and culverts.......................................     41-11-12
Track laying and surfacing.................................     41-11-17
Signals and interlockers...................................     41-11-19
Highway grade crossings....................................     41-11-22
Dismantling retired property...............................     41-11-39
Road property and equipment damaged........................     41-11-48
Other--other...............................................     41-11-99
Other purchased services--way and structures--switching:        41-12-XX
 Freight...................................................
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

                   Repair and maintenance
 
Roadway....................................................     41-12-10
Tunnels and subways........................................     41-12-11
Bridges and culverts.......................................     41-12-12
Track laying and surfacing.................................     41-12-17
Signals and interlockers...................................     41-12-19
Highway grade crossings....................................     41-12-22
Dismantling retired property...............................     41-12-39
Road property and equipment damaged........................     41-12-48
Other--other...............................................     41-12-99
Other purchased services--way and structures--other:            41-13-XX
 Freight...................................................
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

                       Administration
 
Track......................................................     41-13-02
Bridges and buildings......................................     41-13-03
Signals....................................................     41-13-04
Communications.............................................     41-13-05
Other......................................................     41-13-06
 
                   Repair and maintenance
 
Communication systems......................................     41-13-20
Electric power systems.....................................     41-13-21
Station and office buildings...............................     41-13-23
Shop buildings--locomotives................................     41-13-24
Shop buildings--freight cars...............................     41-13-25
Shop buildings--other equipment............................     41-13-26
Locomotive servicing facilities............................     41-13-27
Miscellaneous buildings and structures.....................     41-13-28
Coal terminals.............................................     41-13-29
Ore terminals..............................................     41-13-30
TOFC/COFC terminals........................................     41-13-31
Other marine terminals.....................................     41-13-32
Motor vehicle loading and distribution facilities..........     41-13-33
Facilities for other specialized services operations.......     41-13-35
Roadway machines...........................................     41-13-36
Small tools and supplies...................................     41-13-37
Snow removal...............................................     41-13-38
Dismantling retired property...............................     41-13-39
Road property and equipment damaged........................     41-13-48
Other--other...............................................     41-13-99
Other purchased services--equipment--locomotives: Freight..     41-21-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-21-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     41-21-39
Machinery..................................................     41-21-40
Locomotive.................................................     41-21-41
Road property and equipment damaged........................     41-21-48
Other--other...............................................     41-21-99
Other purchased services--equipment--freight cars: Freight.     41-22-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-22-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     41-22-39
Machinery..................................................     41-22-40
Freight cars...............................................     41-22-42
Road property and equipment damaged........................     41-22-48
Other--other...............................................     41-22-99
Other purchased services--equipment--other equipment:           41-23-XX
 Freight...................................................
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-23-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     41-23-39
Machinery..................................................     41-23-40
Trucks, trailers, containers in revenue service............     41-23-43
Floating equipment--revenue service........................     41-23-44
Passenger and other revenue equipment......................     41-23-45
Computers and data processing equipment....................     41-23-46
Work and other nonrevenue equipment........................     41-23-47
Road property and equipment damaged........................     41-23-48
Other--other...............................................     41-23-99
Other purchased services--transportation--train: Freight...     41-31-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-31-01
 
                         Operations
 
Engine crews...............................................     41-31-56
Train crews................................................     41-31-57
Dispatching trains.........................................     41-31-58
Operating switches, signals, interlockers, retarders, humps     41-31-59
Operating drawbridges......................................     41-31-60
Highway crossing protection................................     41-31-61
Train inspection and lubrication...........................     41-31-62
Clearing wrecks............................................     41-31-63
Locomotive fuel............................................     41-31-67
Electric power purchased/produced for motive power.........     41-31-68
Servicing locomotives......................................     41-31-69
Other--other...............................................     41-31-99
Other purchased services--transportation--yard: Freight....     41-32-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

[[Page 160]]



Administration--general....................................     41-32-01
 
                         Operations
 
Operating switches, signals, interlockers, retarders, humps     41-32-59
Clearing wrecks............................................     41-32-63
Switch crews...............................................     41-32-64
Controlling operations.....................................     41-32-65
Yard and terminal clerical.................................     41-32-66
Locomotive fuel............................................     41-32-67
Electric power purchased/produced for motive power.........     41-32-68
Servicing locomotives......................................     41-32-69
Other--other...............................................     41-32-99
Other purchased services--transportation--train and yard        41-33-XX
 common: Freight...........................................
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

                         Operations
 
Cleaning car interiors.....................................     41-33-70
Adjusting, transferring loads..............................     41-33-71
Car loading devices and grain doors........................     41-33-72
Other purchased services--transportation--specialized           41-34-XX
 services: Freight.........................................
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-34-01
 
                         Operations
 
Pick up and delivery, marine line haul, and rail substitute     41-34-73
 service...................................................
Loading, unloading, and local marine.......................     41-34-74
Protective Services........................................     41-34-75
Other--other...............................................     41-34-99
Other purchased services--transportation--administrative        41-35-XX
 support: freight..........................................
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-35-01
 
                         Operations
 
Clerks, accounting employees...............................     41-35-76
Communication systems operations...........................     41-35-77
Loss and damage claims processing..........................     41-35-78
Other--other...............................................     41-35-99
Other purchased services--general and administrative:           41-61-XX
 freight...................................................
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-61-01
 
                          General
 
Accounting, auditing, finance..............................     41-61-86
Management services and data processing....................     41-61-87
Marketing..................................................     41-61-88
Sales......................................................     41-61-89
Industrial development.....................................     41-61-90
Personnel and labor relations..............................     41-61-91
Legal and secretarial......................................     41-61-92
Public relations and advertising...........................     41-61-93
Research and development...................................     41-61-94
Other--other...............................................     41-61-99
 


                          Claims and Insurance
Control....................................................     50-00-00
 

    This account may be used as a control account for all accounts in 
the CLAIMS AND INSURANCE series: loss and damage claims; other 
casualties; insurance.

Loss and damage claims--control............................     51-00-00
 

    This account includes amounts payable to compensate for the loss or 
damage of freight or other goods carried in revenue service. This 
account excludes amounts payable to employees or other parties for 
injuries sustained or loss of life; for damage to real property of 
others or personal property not carried in revenue service; all payments 
for other damages of any kind; and related insurance premiums.

Loss and damage claims--transportation--train: freight.....     51-31-00
 

    This account includes amounts payable to compensate for the loss or 
damage of freight or other goods carried in revenue service while 
operating all trains except those performing yard functions in 
terminals.

Loss and damage claims--transportation--yard: freight......     51-32-00
 

    This account includes amounts payable to compensate for the loss or 
damage of freight or other goods carried in revenue service which is 
lost or damaged in yards or terminals.

Loss and damage claims--transportation--train and yard          51-33-00
 common: freight...........................................
 

    This account includes amounts payable to compensate for the loss or 
damage of freight or other goods carried in revenue service which are 
not predominantly train or yard.

Loss and damage claims--transportation--specialized             51-34-00
 services: freight.........................................
 

    This account includes amounts payable to compensate for the loss or 
damage of freight or other goods carried in revenue service incurred in 
designated specialized services operations.

Other casualties--control..................................     52-00-00
 

    This account includes amounts payable to employees or other parties 
for injuries sustained or loss of life in connection with the 
construction, maintenance, operations, and administration of railroad 
property and equipment; for damage to real property, property of others 
or personal property not carried in revenue service; all payments for 
other damages of any kind. This account excludes freight and other goods 
carried in revenue service, and insurance premiums related to the 
casualties chargeable to this account.

[[Page 161]]

    Note: The costs of clearing wrecks and repairing casualty-caused 
damage to the railroad's property and equipment are properly classified 
under other natural expense accounts as appropriate and further 
classified by relevant activities and functions.

    These costs are appropriately charged to the following natural 
accounts:

Other casualties--way and structures--running: freight.....     52-11-00
Other casualties--way and structures--switching: freight...     52-12-00
Other casualties--way and structures--other: freight.......     52-13-00
Other casualties--equipment--locomotives: freight..........     52-21-00
Other casualties--equipment--freight cars: freight.........     52-22-00
Other casualties--equipment--Other equipment: freight......     52-23-00
Other casualties--transportation--train: freight...........     51-31-00
Other casualties--transportation--yard: freight............     51-32-00
Other casualties--transportation--specialized services:         52-34-00
 freight...................................................
Other casualties--transportation--administrative support:       52-35-00
 freight...................................................
Other casualties--general and administrative: freight......     52-61-00
Insurance--control.........................................     53-00-00
 

    This account includes premiums for insurance to cover property and 
equipment loss and damage, liability, business interruption, and the 
like. These costs are appropriately charged to the following accounts:

Insurance--way and structures--running: freight............     53-11-00
Insurance--way and structures--switching: freight..........     53-12-00
Insurance--way and structures--other: freight..............     53-13-00
Insurance--equipment--locomotives: freight.................     53-21-00
Insurance--equipment--freight cars: freight................     53-22-00
Insurance--equipment--other equipment: freight.............     53-23-00
Insurance--transportation--train: freight..................     53-31-00
Insurance--transportation--yard: freight...................     53-32-00
Insurance--transportation--specialized services: freight...     53-34-00
Insurance--transportation--administrative support: freight.     53-35-00
Insurance--general and administrative: freight.............     53-61-00
 


                                 General
Control....................................................     60-00-00
 

    This account may be used as a control account for all accounts in 
the GENERAL series: other expenses; depreciation; uncollectible 
accounts; property taxes; other taxes.

Other expenses--control....................................     61-00-00
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property and 
equipment retirement losses, and other items of a general nature.

Other expenses--way and structures--running: freight.......     61-11-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement lossses, and other items of a general nature associated with 
the carrier's roadway and track on the line of road and outside of 
classification yards. This account shall be subdivided by the following 
functions:

                   Repair and maintenance
 
Roadway....................................................     61-11-10
Tunnels and subways........................................     61-11-11
Bridges and culverts.......................................     61-11-12
Track laying and surfacing.................................     61-11-17
Signals and interlockers...................................     61-11-19
Highway grade crossings....................................     61-11-22
Dismantling retired property...............................     61-11-39
Road property and equipment damaged........................     61-11-48
Other--other...............................................     61-11-99
Other expenses--way and structures--switching: freight.....     61-12-XX
 

    This account includes amount charged to operating expenses for items 
not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement losses, and other items of a general nature associated with 
the carrier's roadway and track within classification yards and 
stations. This account shall be subdivided by the following functions:

                   Repair and maintenance
 
Roadway....................................................     61-12-10
Tunnels and subways........................................     61-12-11
Bridges and culverts.......................................     61-12-12
Track laying and surfacing.................................     61-12-17
Signals and interlockers...................................     61-12-19
Highway grade crossings....................................     61-12-22
Dismantling retired property...............................     61-12-39
Road property and equipment damaged........................     61-12-48
Other--other...............................................     61-12-99
Other expenses--way and structures--other: freight.........     61-13-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement losses, and other items of a general nature associated with 
the carrier's structures other than roadway and track. This account 
shall be subdivided by the following functions:

                       Administration
 
Track......................................................     61-13-02
Bridges and buildings......................................     61-13-03
Signals....................................................     61-13-04
Communications.............................................     61-13-05
Other......................................................     61-13-06
 
                   Repair and maintenance
 
Communication systems......................................     61-13-20
Electric power systems.....................................     61-13-21
Station and office buildings...............................     61-13-23
Shop buildings--locomotives................................     61-13-24
Shop buildings--freight cars...............................     61-13-25
Shop buildings--other equipment............................     61-13-26
Locomotive servicing facilities............................     61-13-27
Miscellaneous buildings and structures.....................     61-13-28

[[Page 162]]

 
Coal terminals.............................................     61-13-29
Ore terminals..............................................     61-13-30
TOFC/COFC terminals........................................     61-13-31
Other marine terminals.....................................     61-13-32
Motor vehicle loading and distribution facilities..........     61-13-33
Facilities for other specialized services operations.......     61-13-35
Roadway machines...........................................     61-13-36
Small tools and supplies...................................     61-13-37
Snow removal...............................................     61-13-38
Dismantling retired property...............................     61-13-39
Road property and equipment damaged........................     61-13-48
Other--other...............................................     61-13-99
Other expenses--equipment--locomotives: Freight............     61-21-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees and equipment 
retirement losses, associated with the repair and maintenance of 
locomotives, whether owned by the carrier or by others. This account 
shall be subdivided by the following functions:

Administration--general....................................     61-21-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     61-21-39
Machinery..................................................     61-21-40
Locomotives................................................     61-21-41
Road property and equipment damaged........................     61-21-48
Other--other...............................................     61-21-99
Other expenses--equipment--freight cars: Freight...........     61-22-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, equipment retirement 
losses, associated with the repair and maintenance of freight cars, 
whether owned by the carrier or by others. This account shall be 
subdivided by the following functions:

Administration--general....................................     61-22-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     61-22-39
Machinery..................................................     61-22-40
Freight cars...............................................     61-22-42
Road property and equipment damaged........................     61-22-48
Other--other...............................................     61-22-99
Other expenses--equipment--other equipment: Freight........     61-23-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, equipment retirement 
losses, associated with the repair and maintenance of equipment other 
than locomotives and freight cars, whether owned by the carrier or by 
others. This account shall be subdivided by the following functions:

Administration--general....................................     61-23-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     61-23-39
Machinery..................................................     61-23-40
Trucks, trailers, containers in revenue service............     61-23-43
Floating equipment--revenue service........................     61-23-44
Passenger and other revenue equipment......................     61-23-45
Computers and data processing equipment....................     61-23-46
Work and other nonrevenue equipment........................     61-23-47
Road property and equipment damaged........................     61-23-48
Other--other...............................................     61-23-99
Other expenses--transportation--train: Freight.............     61-31-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, associated with the 
dispatching and operations of freight trains over the roadway and 
outside of classification yards. This account shall be subdivided by the 
following functions:

Administration--general....................................     61-31-01
 
                         Operations
 
Engine crews...............................................     61-31-56
Train crews................................................     61-31-57
Dispatching trains.........................................     61-31-58
Operating switches, signals, interlockers, retarders, humps     61-31-59
Operating drawbridges......................................     61-31-60
Highway crossing protection................................     61-31-61
Train inspection and lubrication...........................     61-31-62
Clearing wrecks............................................     61-31-63
Locomotive fuel............................................     61-31-67
Electric power purchased/produced for motive power.........     61-31-68
Servicing locomotives......................................     61-31-69
Other--other...............................................     61-31-99
Other expenses--transportation--yard: Freight..............     61-32-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature associated with the movement of freight cars within 
classification yards and in terminal switching and transfer service. 
This account shall be subdivided by the following functions:

Administration--general....................................     61-32-01
 
                         Operations
 
Operating switches, signals, interlockers, retarders, humps     61-32-59
Clearing wrecks............................................     61-32-63
Switch crews...............................................     61-32-64
Controlling operations.....................................     61-32-65
Yard and terminal clerical.................................     61-32-66
Locomotive fuel............................................     61-32-67
Electric power purchased/produced for motive power.........     61-32-68
Servicing locomotives......................................     61-32-69
Other--other...............................................     61-32-99
Other expenses--transportation--specialized services:           61-34-XX
 Freight...................................................
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in operating services which are specialized in 
nature and in cost characteristics. The specialized services designated 
by the Board appear within the definition of specialized services. This 
account shall be subdivided by the following functions:

Administration--general....................................     61-34-01
 

[[Page 163]]

 
                         Operations
 
Pick up and delivery, marine line haul, and rail substitute     61-34-73
 service...................................................
Loading, unloading, and local marine.......................     61-34-74
Protective services........................................     61-34-75
Other--other...............................................     61-34-99
Other expenses--transportation--administrative support:         61-35-XX
 Freight...................................................
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in association with providing direct 
administrative support for the Transportation Activity. This account 
shall be subdivided by the following functions:

Administration--general....................................     61-35-01
 
                         Operations
 
Clerks, accounting employees...............................     61-35-76
Communication systems operations...........................     61-35-77
Loss and damage claims processing..........................     61-35-78
Other--other...............................................     61-35-99
Other expenses--general and administrative: Freight........     61-61-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in providing overall administration of other 
support for carrier operations. This account shall be subdivided by the 
following functions:

Administration--general....................................     61-61-01
 
                          General
 
Accounting, auditing, finance..............................     61-61-86
Management services and data processing....................     61-61-87
Marketing..................................................     61-61-88
Sales......................................................     61-61-89
Industrial development.....................................     61-61-90
Personnel labor relations..................................     61-61-91
Legal and secretarial......................................     61-61-92
Public relations and advertising...........................     61-61-93
Research and development...................................     61-61-94
Other--other...............................................     61-61-99
Depreciation--control......................................     62-00-00
 

    This control account includes the amounts charged to operating 
expenses for depreciation of owned road property and equipment, and the 
depreciation element of road property held under capital lease in 
accordance with FASB Statement No. 13. These costs are appropriately 
charged to the following natural accounts:

Depreciation--way and structures--running: Freight.........     62-11-00
Depreciation--way and structures--switching: Freight.......     62-12-00
Depreciation--way and structures--other: Freight...........     62-13-00
Depreciation--equipment--locomotives: Freight..............     62-21-00
Depreciation--equipment--freight cars: Freight.............     62-22-00
Depreciation--equipment--other equipment: Freight..........     62-23-00
Uncollectible accounts--control............................     63-00-00
 

    This account includes charges to operating expenses for the 
writedown of accounts and notes due to the railroad, whether classified 
as current or long-term. This account includes any credits to allowance 
accounts for collectibility and total writeoff of receivables. This 
account does not include writedowns of property, equipment, or 
investments (except accounts, notes, or other receivables held as 
investments). Proper adjustments of incorrect receivables are not to be 
charged to this account. Collections of amounts previously written off 
or down are to be credited to this account. The total of this account 
shall be charged to the following account:

Uncollectible accounts--general and administrative: Freight     63-61-00
Property taxes--control....................................     64-00-00
 

    This account includes only taxes based on the value of real estate 
and personal property used in railroad operations. The total of this 
account shall be charged to the following account:

Property taxes--general and administrative: Freight........     64-61-00
Other taxes--control.......................................     65-00-00
 

    This account includes taxes on gross receipts, franchise fees, 
excise taxes, and similar items. This account excludes property taxes 
and taxes chargeable as emloyee benefits. The total of this account 
shall be charged to the following account:

Other taxes--general and administrative: Freight...........     65-61-00
 

    (2) Other computed cost elements.

651 Locomotives return on investment.
652 Freight train car costs.
01 Per day costs.
02 Mileage costs.
654 Rehabilitation.
664 Deadheading, taxi and hotel costs.
01 Deadheading.
02 Taxi.
03 Hotel.
665 Overhead movement costs.
01 Transportation.
02 Equipment.
03 Freight-train cars--mileage portion.

    (3) Off-branch avoidable costs.

661 Terminal costs.
01 Modified terminal costs.
02 Normal terminal costs.
03 Interchange costs.
662 Freight train car costs.
663 Freight train revenue ton-mile costs.

    (4) All other avoidable costs.\1\
---------------------------------------------------------------------------

    \1\ Accounts 671-675 apply to Part 1152 only. Accounts 677 and 682 
apply to Part 1155 only.

671 Working capital.
672 Required capital expenditures.
673 Deferred maintenance.

[[Page 164]]

674 Current cost of freight train cars, locomotives, and other 
equipment.
675 Foregone tax benefits.
676 Administrative costs.
677 Deferred subsidy payment costs.
678 Casualty reserve expenses.
Total, all other avoidable costs.
681 Reasonable return on the value of properties.
682 Management fee.

[43 FR 1733, Jan. 11, 1978, as amended at 43 FR 28498, June 30, 1978; 44 
FR 9730, Feb. 14, 1979; 47 FR 49596, Nov. 1, 1982; 67 FR 57533, Sept. 
11, 2002]



 Sec. Appendix I to Part 1201--Certification of Branch Line Accounting 
                             System Records

Carrier: (Exact legal title or name of the respondent)__________________
________________________________________________________________________

Name, title, telephone number and address of the person to be contacted:

Name____________________________________________________________________
Title___________________________________________________________________
Telephone Number: (Area Code) and (Telephone number)____________________
Office Address: (Street and number) (City, State, and ZIP code)_________
________________________________________________________________________

                              certification

I, the undersigned,_____________________________________________________
of (Title of officer in charge of accounts)_____________________________
________________________________________________________________________
(Full name of reporting company)________________________________________

certify that during the calendar year 19---- the branch line accounting 
system data were collected and maintained for each line that met the 
criteria set forth in 49 CFR 1201, Subpart B, section 920(a), Lines For 
Which Data Collection Is Required, (Docket No. 36366).

 Signature______________________________________________________________

    Date------------

    The lines covered by this certification are described below: 
(Describe each branch line separately using the following format as set 
forth in 49 CFR 1152.11.)
    (a) Carrier's designation for line (Ex. Zanesville Secondary Track);
    (b) State or states in which line is located;
    (c) County or counties in which line is located;
    (d) Milepost delineating each line or portion of line;
    (e) Agency or terminal station(s) located on line or portion of line 
with milepost designations;
    (f) Current category designation and date placed in that category; 
and
    (g) Previous category.

[44 FR 9730, Feb. 14, 1979, as amended at 47 FR 49596, Nov. 1, 1982]

                       PARTS 1202	1219 [RESERVED]



PARTS 1220	1239_PRESERVATION OF RECORDS--Table of Contents



    Note: Section 20(7)(b) of the Interstate Commerce Act includes the 
following provision:
    Any person who shall knowingly and willfully make, cause to be made, 
or participate in the making of, any false entry in any annual or other 
report required under this section to be filed, or in the accounts of 
any book of accounts or in any records or memoranda kept by a carrier, 
or required under this section to be kept by a lessor or other person, 
or who shall knowingly and willfully destroy, mutilate, alter, or by any 
other means or device falsify the record of any such accounts, records, 
or memoranda, * * * shall be deemed guilty of a misdemeanor and shall be 
subject, upon conviction in any court of the United States of competent 
jurisdiction to a fine of not more than five thousand dollars or 
imprisonment for not more than two years, or both such fine and 
imprisonment: Provided, That the Board may in its discretion issue 
orders specifying such operating, accounting, or financial papers, 
records, books, blanks, tickets, stubs, correspondence, or documents of 
such carriers, lessors, or other persons as may, after a reasonable 
time, be destroyed, and prescribing the length of time the same shall be 
preserved.



PART 1220_PRESERVATION OF RECORDS--Table of Contents



Sec.
1220.0 Applicability.
1220.1 Records required to be retained.
1220.2 Protection and storage of records.
1220.3 Preservation of records.
1220.4 Companies going out of business.
1220.5 Waiver of requirements of these regulations.
1220.6 Schedule of records and periods of retention.

    Authority: 49 U.S.C. 721, 11144, 11145.

    Source: 50 FR 10775, Mar. 18, 1985; 51 FR 22083, June 18, 1986, 
unless otherwise noted.



Sec.  1220.0  Applicability.

    The preservation of record rules contained in this part shall apply 
to the following:


[[Page 165]]


Railroad companies
Electric railway companies
Express companies
Persons furnishing cars to railroads
Ratemaking organizations


This part applies also to the preservation of accounts, records and 
memoranda of traffic associations, demurrage and car service bureaus, 
weighing and inspection bureaus, and other joint activities maintained 
by or on behalf of companies listed in the above paragraph of this 
subpart.

[50 FR 1075, Mar. 18, 1985 and 51 FR 22083, June 18, 1986, as amended at 
51 FR 44297, Dec. 9, 1986; 62 FR 50525, Sept. 26, 1997]



Sec.  1220.1  Records required to be retained.

    Companies subject to this part shall retain records for the minimum 
retention periods required by Sec.  1220.6, Schedule of records and 
periods of retention. After the required retention periods, the records 
may be destroyed at the discretion of each company's management. It 
shall be the obligation of the subject company to maintain records that 
adequately support financial and operational data required by the Board. 
The company may request a ruling from the Board on the retention of any 
record. The provisions of this part shall not be construed as excusing 
compliance with the lawful requirements of any other governmental body 
prescribing longer retention periods for any category of records.



Sec.  1220.2  Protection and storage of records.

    (a) The company shall protect records subject to this part from 
fires, floods, and other hazards, and safeguard the records from 
unnecessary exposure to deterioration from excessive humidity, dryness, 
or lack of ventilation.
    (b) The company shall notify the Board if prescribed records are 
substantially destroyed or damaged before the term of the prescribed 
retention periods.



Sec.  1220.3  Preservation of records.

    (a) All records may be preserved by any technology that is immune to 
alteration, modification, or erasure of the underlying data and will 
enable production of an accurate and unaltered paper copy.
    (b) Records not originally preserved on hard copy shall be 
accompanied by a statement executed by a person having personal 
knowledge of the facts indicating the type of data included within the 
records. One comprehensive statement may be executed in lieu of 
individual statements for multiple records if the type of data included 
in the multiple records is common to all such records. The records shall 
be indexed and retained in such a manner as will render them readily 
accessible. The company shall have facilities available to locate, 
identify and produce legible paper copies of the records.
    (c) Any significant characteristic, feature or other attribute that 
a particular medium will not preserve shall be clearly indicated at the 
beginning of the applicable records as appropriate.
    (d) The printed side of forms, such as instructions, need not be 
preserved for each record as long as the printed matter is common to all 
such forms and an identified specimen of the form is maintained on the 
medium for reference.

[50 FR 10775, Mar. 18, 1985, as amended at 56 FR 30874, July 8, 1991]



Sec.  1220.4  Companies going out of business.

    The records referred to in these regulations may be destroyed after 
business is discontinued and the company is completely liquidated. The 
records may not be destroyed until dissolution is final and all pending 
transactions and claims are completed. When a company is merged with 
another company under jurisdiction of the Board, the successor company 
shall preserve records of the merged company in accordance with these 
regulations.



Sec.  1220.5  Waiver of requirements of these regulations.

    A waiver from any provision of these regulations may be made by the 
Board upon its own initiative or upon submission of a written request by 
the company. Each request for waiver shall demonstrate that unusual 
circumstances warrant a departure from

[[Page 166]]

prescribed retention periods, procedures, or techniques, or that 
compliance with such prescribed requirements would impose an 
unreasonable burden on the company.



Sec.  1220.6  Schedule of records and periods of retention.

    The following schedule shows periods that designated records shall 
be preserved. The descriptions specified under the various general 
headings are for convenient reference and identification, and are 
intended to apply to the items named regardless of what the records are 
called in individual companies and regardless of the record media. The 
retention periods represent the prescribed number of years from the date 
of the document and not calendar years. Records not listed below shall 
be retained as determined by the management of each company.

              Schedule of Records and Periods of Retention
------------------------------------------------------------------------
          Item and category of records               Retention period
------------------------------------------------------------------------
                        A. Corporate and General
1. Incorporation and reorganization:
    (a) Charter or certificate of incorporation   Note A.
     and amendments.
    (b) Legal documents related to mergers,        Do.
     consolidations, reorganization,
     receiverships and similar actions which
     affect the identity or organization of the
     company.
2. Minutes of Directors, Executive Committees,     Do.
 Stockholders and other corporate meetings.
3. Titles, franchises and authorities:
    (a) Certificates of public convenience and    Until expiration or
     necessity issued by regulating bodies.        cancellation.
    (b) Operating authorizations and exemptions    Do.
     to operate.
    (c) Copies of formal orders of regulatory     Note A.
     bodies served upon the company.
    (d) Deeds, charters, and other title papers.  Until disposition of
                                                   property.
    (e) Patents and patent records..............  Note A.
4. Annual reports or statements to stockholders.  3 years.
5. Contracts and agreements:
    (a) Service contracts, such as for            Until expiration or
     operational management, accounting,           termination plus 3
     financial or legal services, and agreements   years.
     with agents.
    (b) Contracts and other agreements relating    Do.
     to the construction, acquisition or sale of
     real property and equipment except as
     otherwise provided in (a) above.
    (c) Contracts for the purchase or sale of     Until expiration.
     material and supplies except as provided in
     (a) above.
    (d) Shipping contracts for transportation or   Do.
     caretakers of freight.
    (e) Contracts with employees and employee     Until expiration.
     bargaining groups.
    (f) Contracts, leases and agreements, not     Until expiration or
     specifically provided for in this section.    termination plus 1
                                                   year.
6. Accountant's auditor's, and inspector's
 reports:
    (a) Certifications and reports of             3 years
     examinations and audits conducted by public
     accountants.
    (b) Reports of examinations and audits         Do.
     conducted by internal auditors, time
     inspectors, and others.
7. Other: (See Note A)
                               B. Treasury
1. Capital stock records:
    (a) Capital stock ledger....................  Note A.
    (b) Capital stock certificates, records of     Do.
     or stubs of.
    (c) Stock transfer register.................   Do.
2. Long-term debt records:
    (a) Bond indentures, underwritings,           Until redemption plus
     mortgages, and other long-term credit         3 years.
     agreements.
    (b) Registered bonds and debenture ledgers..   Do.
    (c) Stubs or similar records of bonds or      Note A.
     other long-term debt issued.
3. Authorizations from regulatory bodies for       Do.
 issuance of securities including applications,
 reports, and supporting papers.
4. Records of securities owned, in treasury, or   Until the securities
 held by custodians, detailed ledgers and          are sold, redeemed or
 journals, or their equivalent.                    otherwise disposed
                                                   of.
5. Other: (See Note A)
                       C. Financial and Accounting
1. Ledgers:
    (a) General and subsidiary ledgers with       Until discontinuance
     indexes.                                      of use plus 3 years.
    (b) Balance sheets and trial balance sheets   3 years.
     of general and subsidiary ledgers.
2. Journals:
    (a) General journals........................  Until discontinuance
                                                   of use plus 3 years.
    (b) Subsidiary journals and any supporting    3 years.
     data, except as otherwise provided for,
     necessary to explain journal entries.

[[Page 167]]

 
3. Cash books:
    (a) General cash books......................  Until discontinuance
                                                   of use plus 3 years.
    (b) Subsidiary cash books...................  3 years.
4. Vouchers:
    (a) Voucher registers, indexes, or             Do.
     equivalent.
    (b) Paid and canceled vouchers, expenditure    Do.
     authorizations, detailed distribution
     sheets and other supporting data including
     original bills and invoices, if not
     provided for elsewhere.
    (c) Paid drafts, paid checks, and receipts    3 years.
     for cash paid out.
5. Accounts receivable:
    (a) Record or register of accounts            3 years after
     receivable, indexes thereto, and summaries    settlement.
     of distribution.
    (b) Bills issued for collection and            Do.
     supporting data.
    (c) Authorization for writing off             1 year.
     receivables.
    (d) Reports and statements showing age and     Do.
     status of receivables.
6. Records of accounting codes and instructions.  3 years after
                                                   discontinuance.
7. Other: (Note A)
                        D. Property and Equipment
Note.--All accounts, records, and memoranda necessary for making a
 complete analysis of the cost or value of property shall be retained
 for the periods shown. If any of the records elsewhere provided for in
 this schedule are of this character, they shall be retained for the
 periods shown below, regardless of any lesser retention period assigned
1. Property records:
    (a) Records which maintain complete           3 years after
     information on cost or other value of all     disposition of
     real and personal property or equipment.      property.
    (b) Records of additions and betterments       Do.
     made to property and equipment.
    (c) Records pertaining to retirements and      Do.
     replacements of property and equipment.
    (d) Records pertaining to depreciation......   Do.
    (e) Records of equipment number changes.....   Do.
    (f) Records of motor and engine changes.....   Do.
    (g) Records of equipment lightweighed and     Only current or latest
     stenciled.                                    records.
2. Engineering records of property changes        3 years after
 actually made.                                    disposition of
                                                   property.
3. Other: (Note A)
                        E. Personnel and Payroll
1. Personnel and payroll records................  1 year (Note A).
                         F. Insurance and Claims
1. Insurance records:
    (a) Schedules of insurance against fire,      Until expiration plus
     storms, and other hazards and records of      1 year.
     premium payments.
    (b) Records of losses and recoveries from     1 year after
     insurance companies and supporting papers.    settlement.
    (c) Insurance policies......................  Until expiration of
                                                   coverage plus 1 year.
2. Claims records:
    (a) Claim registers, card or book indexes,    1 year after
     and other records which record personal       settlement.
     injury, fire and other claims against the
     company, together with all supporting data.
    (b) Claims registers, card or book indexes,    Do.
     and other records which record overcharges,
     damages, and other claims filed by the
     company against others, together with all
     supporting data.
    (c) Records giving the details of             3 years.
     authorities issued to agents, carriers, and
     others for participation in freight claims.
    (d) Reports, statements and other data         Do.
     pertaining to personal injuries or damage
     to property when not necessary to support
     claims or vouchers.
    (e) Reports, statements, tracers, and other   1 year.
     data pertaining to unclaimed, over, short,
     damaged, and refused freight, when not
     necessary to support claims or vouchers.
    (f) Authorities for disposal of unclaimed,    3 years.
     damaged, and refused freight.
3. Other: (See Note A)
                                G. Taxes
1. Taxes. (Note A)
                         H. Purchases and Stores
1. Purchases and stores. (Note A)
                    I. Shipping and Agency Documents
1. Bills of lading and releases:
    (a) Consignors' shipping orders, consignors'  1 year.
     shipping tickets, and copies of bills of
     lading freight bills from other carriers
     and other similar documents furnished the
     carrier for movement of freight.
    (b) Shippers' order-to-notify bills of         Do.
     lading taken up and cancelled.
2. Freight waybills:
    (a) Local waybills..........................   Do.

[[Page 168]]

 
    (b) Interline waybills received from and       Do.
     made to other carriers.
    (c) Company freight waybills................   Do.
    (d) Express waybills........................   Do.
3. Freight bills and settlements:
  (a) Paid copy of freight bill retained to
   support receipt of freight charges:
    (1) Bus express freight bills provided no      Do.
     claim has been filed.
    (2) All other freight bills.................   Do.
  (b) Paid copy of freight bill retained to
   support payment of freight charges to other
   carriers:
    (1) Bus express freight bills provided no      Do.
     claim has been filed.
    (2) All other freight bills.................   Do.
  (c) Records of unsettled freight bills and      1 year after
   supporting papers.                              disposition.
  (d) Records and reports of correction notices.  1 year.
4. Other freight records:
    (a) Records of freight received, forwarded,    Do.
     and delivered.
    (b) Notice to consignees of arrival of         Do.
     freight; tender of delivery.
5. Agency records (to include conductors,
 pursers, stewards, and others):
    (a) Cash books..............................   Do.
    (b) Remittance records, bank deposit slips     Do.
     and supporting papers.
    (c) Balance sheets and supporting papers....   Do.
    (d) Statements of corrections in agents'       Do.
     accounts.
    (e) Other records and reports pertaining to    Do.
     ticket sales, baggage handled,
     miscellaneous collections, refunds,
     adjustments, etc.
                            J. Transportation
1. Records pertaining to transportation of
 household goods:
    (a) Estimate of charges.....................  1 year.
    (b) Order for service.......................   Do.
    (c) Vehicle-load manifest...................   Do.
    (d) Descriptive inventory...................   Do.
2. Records and reports pertaining to operation
 of marine and floating equipment:
    (a) Ship log................................  3 years.
    (b) Ship articles...........................   Do.
    (c) Passenger and room list.................   Do.
    (d) Floatmen's barge, lighter, and escrow     2 years.
     captain's reports, demurrage records,
     towing reports and checks sheets.
3. Car distribution and movement-railroads only:
    (a) Records of car allotment and               Do.
     distribution.
    (b) Records of cars ordered, furnished and     Do.
     loaded.
    (c) Records showing dates and numbers of       Do.
     trains, initials and number of cars,
     movement of cars, and mileage of cars and
     trains.
    (d) Report of cars interchanged with           Do.
     connecting lines.
    (e) Reports of unfilled car orders..........  1 year.
    (f) Per diem and mileage reports made and     2 years.
     received, including reclaims and
     discrepancy and adjustment reports.
    (g) Demurrage and storage records...........   Do.
4. Dispatchers' sheets, registers, and other      3 years
 records pertaining to movement of
 transportation equipment.
5. Import and export records including bonded     2 years.
 freight and steamship engagements.
6. Records, reports, orders and tickets           3 years.
 pertaining to weighting of freight.
7. Records of loading and unloading of            2 years.
 transportation equipment.
8. Records pertaining to the diversion or          Do.
 reconsignment of freight, including requests,
 tracers, and correspondence.
9. Other: (See Note A)
                          K. Tariffs and Rates
1. Official file copies of tariffs,               3 years after
 classifications, division sheets, and circulars   expiration or
 relative to the transportation of persons or      cancellation.
 property.
2. Authorities and supporting papers for          3 years.
 transportation of property or passengers free
 or at reduced rates.
3. Records and documents required by provisions   2 years.
 of Sec.   1253.20 to be maintained.
              L. Supporting Data for Reports and Statistics
1. Supporting data for reports filed with the
 Surface Transportation Board and regulatory
 bodies:
    (a) Supporting data for annual financial,     3 years.
     operating and statistical reports.
    (b) Supporting data for periodical reports     Do.
     of operating revenues, expenses, and income.
    (c) Supporting data for reports detailing      Do.
     use of proceeds from issuance or sale of
     company securities.
    (d) Supporting data for valuation inventory   3 years after
     reports and records. This includes related    disposition of the
     notes, maps and sketches, underlying          property.
     engineering, land, and accounting reports,
     pricing schedules, summary or collection
     sheets, yearly reports of changes and other
     miscellaneous data, all relating to the
     valuation of the company's property by the
     Surface Transportation Board or other
     regulatory body.

[[Page 169]]

 
2. Supporting data for periodical reports of      3 years.
 accidents, inspections, tests, hours of
 service, repairs, freight car locations, etc.
3. Supporting data for periodical statistical of   Do.
 operating results or performance by tonnage,
 mileage, passengers carried, piggyback traffic,
 commodities, costs, analyses of increases and
 decreases, or otherwise.
                            M. Miscellaneous
1. Index of records.............................  Until revised as
                                                   record structure
                                                   changes.
2. Statement listing records prematurely          For the remainder of
 destroyed or lost.                                the period as
                                                   prescribed for
                                                   records destroyed.
------------------------------------------------------------------------
Note A: Records referenced to this note shall be maintained as
  determined by the designated records supervisory official. Companies
  should be mindful of the record retention requirements of the Internal
  Revenue Service, Securities and Exchange Commission, state and local
  jurisdictions and other regulatory agencies. Companies shall exercise
  reasonable care in choosing retention periods, and the choice of
  retention periods shall reflect past experiences, company needs,
  pending litigation, and regulatory requirements.


[50 FR 10775, Mar. 18, 1985, as amended at 51 FR 22083, June 18, 1986]



PARTS 1240	1259_REPORTS--Table of Contents



    Note: The report forms prescribed by parts 1241-1259 are available 
upon request from the Office of Economics, Environmental Analysis, and 
Administration, Surface Transportation Board, Washington, DC 20423-0001.



PART 1241_ANNUAL, SPECIAL, OR PERIODIC REPORTS_CARRIERS SUBJECT TO PART I OF THE INTERSTATE COMMERCE ACT--Table of Contents



Sec.
1241.1 Common carriers.
1241.2 Reporting companies defined.
1241.11 Annual reports of class I railroads.
1241.15 Railroad classification survey form.

    Authority: 49 U.S.C. 11145.
    Note: The report forms prescribed by part 1241 are available upon 
request from the Office of Economics, Environmental Analysis, and 
Administration, Surface Transportation Board, Washington, DC 20423-0001.



Sec.  1241.1  Common carriers.

    All common carriers subject to the provisions of Part I of 
Interstate Commerce Act, as amended, and the owners of all railroads 
engaged in interstate commerce as therein defined, are hereby required 
hereafter to file in the office of the Board on or before the 31st day 
of March in each year, reports covering the period of 12 months ending 
with the 31st day of December preceding said date, giving the 
particulars heretofore called for in the annual reports required by the 
Board of said carriers and owners of railroads.

[32 FR 20456, Dec. 20, 1967]



Sec.  1241.2  Reporting companies defined.

    (a) Every common carrier by rail which is required by the act to 
regulate commerce to file with the Board any tariff or schedule of 
rates, fares, or charges, or any concurrence in such tariff or schedule, 
shall be required to keep operating accounts and to file an annual 
operating report unless specifically excused by the Board.
    (b) Every railway corporation owning but not operating a railway 
used in interstate or foreign commerce shall be required to file with 
the Board an annual nonoperating report unless relieved therefrom under 
the provisions of rule following.
    (c) Any actually existing inactive corporation coming within the 
scope of rule given above may be relieved from the requirements of that 
rule if it has no outstanding stocks or obligations not held by or for 
its controlling corporation and the controlling corporation reports for 
the inactive corporation such facts as the Board may require to be 
reported.
    (d) Reports of a controlling corporation and its controlled 
corporations must exclude duplications in respect of investments in 
railway plant and equipment and in respect of securities outstanding.

[32 FR 20456, Dec. 20, 1967, as amended at 46 FR 9115, Jan. 28, 1981]

[[Page 170]]



Sec.  1241.11  Annual reports of class I railroads.

    (a) Commencing with reports for the year ended December 31, 1973, 
and thereafter, until further order, all line-haul railroad companies of 
class I, as defined in Sec.  1240.1 of this chapter, subject to section 
20, Part I of the Interstate Commerce Act, are required to file annual 
reports in accordance with Railroad Annual Report Form R-1. Such annual 
report shall be filed in duplicate in the office of the Office of 
Economics, Environmental Analysis, and Administration, Surface 
Transportation Board, Washington, DC 20423, on or before March 31 of the 
year following the year which is being reported.
    (b) [Reserved]

(49 U.S.C. 220, 313, 412 and 10321; 5 U.S.C. 553)

[38 FR 32920, Nov. 29, 1973, as amended at 41 FR 21354, May 25, 1976; 42 
FR 1475, Jan. 7, 1977; 44 FR 65402, Nov. 13, 1979; 67 FR 57534, Sept. 
11, 2002]



Sec.  1241.15  Railroad classification survey form.

    Commencing with the year ending December 31, 1982, and thereafter, 
until further order, all railroad companies not required to file an 
Annual Report (Form R-1) shall compute their adjusted revenues using the 
railroad revenue deflator formula. If there is a change in a carrier's 
classification the survey form shall be filed with the Bureau of 
Accounts, Surface Transportation Board, Washington, DC 20423, on or 
before March 31.

[48 FR 2544, Jan. 20, 1983]



PART 1242_SEPARATION OF COMMON OPERATING EXPENSES BETWEEN FREIGHT SERVICE AND PASSENGER SERVICE FOR RAILROADS \1\--Table of Contents


---------------------------------------------------------------------------

    \1\ The accounts mentioned in this part refer to and agree with part 
1201 of this chapter.
---------------------------------------------------------------------------

                          List of Instructions

Sec.
1242.00 Separation of common operating expenses.

                                 General

1242.01 Expenses solely related to freight service and passenger 
          service.
1242.02 Common expenses.
1242.03 Made by accounting divisions.
1242.04 Special tests.
1242.05 Operating expense account number notation.
1242.06 Instructions for separation.

                 Operating Expenses--Way and Structures

1242.10 Administration--track (account XX-19-02).
1242.11 Administration--bridges and buildings (account XX-19-03).
1242.12 Administration--signals (account XX-19-04).
1242.13 Administration--communications (account XX-19-05).
1242.14 Administration--other (account XX-19-06).
1242.15 Roadway, tunnels and subways, bridges and culverts, ties, rails, 
          other track material, ballast, track laying and surfacing, and 
          road property damaged (accounts XX-17-10 to XX-18-12, 
          inclusive; 21-17-13 to 21-18-16, inclusive, XX-17-17, XX-18-
          17, XX-17-48, and XX- 18-48).
1242.16 Road property damaged--other (account XX-19-48).
1242.17 Signals and interlockers (accounts XX-17-19 and XX-18-19).
1242.18 Communication systems (account XX-19-20).
1242.19 Electric power systems (account XX-19-21).
1242.20 Highway grade crossings (accounts XX-17-22 and XX-18-22).
1242.21 Station and office buildings (account XX-19-23).
1242.22 Shop buildings--locomotives (account XX-19-24).
1242.23 Shop buildings--freight cars (account XX-13-25).
1242.24 Shop buildings--other equipment (account XX-19-26).
1242.25 Locomotive servicing facilities (account XX-19-27).
1242.26 Miscellaneous buildings and structures (account XX-19-28).
1242.27 Coal marine terminals, ore marine terminals, TOFC/COFC 
          terminals, other marine terminals, motor vehicle loading and 
          distribution facilities, and facilities for other specialized 
          service operations (accounts XX-13-29 to XX-13-35, inclusive).
1242.28 Roadway machines, small tools and supplies, and snow removal 
          (accounts XX-19-36 to XX-19-38, inclusive).
1242.29 Fringe benefits (accounts 12-17-00, 12-18-00, 12-19-00).
1242.30 Dismantling retired road property and depreciation (accounts XX-
          17-39, XX-18-39, XX-19-39, 62-17-00, 62-18-00, and 62-19-00).

[[Page 171]]

1242.31 Lease rentals--debit and credit and other rents--debit and 
          credit (accounts 31-17-00, 31-18-00, 31-19-00, 32-17-00, 32-
          18-00, 32-19-00, 35-17-00, 35-18-00, 35-19-00, 36-17-00, 36-
          18-00, and 36-19-00).
1242.32 Joint facility rents--debit and credit and joint facility--debit 
          and credit (accounts 33-17-00, 33-18-00, 33-19-00, 34-17-00, 
          34-18-00, 34-19-00, 37-17-00, 37-18-00, 37-19-00, 38-17-00, 
          38-18-00, and 38-19-00).
1242.33 Other expenses and casualties and insurance (accounts XX-17-99, 
          XX-18-99, XX-19-99, 50-17-00, 50-18-00, and 50-19-00).

                      Operating Expenses--Equipment

                               Locomotives

1242.34 Administration (account XX-26-01).
1242.35 Repair and maintenance (account XX-26-41).
1242.36 Machinery repair and equipment damaged (accounts XX-26-40 and 
          XX-26-48).
1242.37 Dismantling retired property and depreciation (accounts XX-26-39 
          and 62-26-00).
1242.38 Fringe benefits (account 12-26-00).
1242.39 Lease rentals--debit and credit, other rents--debit and credit, 
          and repairs billed to others (accounts 31-26-00, 32-26-00, 35-
          26-00, 36-26-00, and 40-26-98).
1242.40 Joint facility rents--debit and credit, and joint facility--
          debit and credit (accounts 33-26-00, 34-26-00, 37-26-00, and 
          38-26-00).
1242.41 Other and casualties and insurance (accounts XX-26-99 and 50-26-
          00).

                              Freight Cars

1242.42 Administration, repair and maintenance, machinery repair, 
          equipment damaged, dismantling retired property, fringe 
          benefits, other casualties and insurance, lease rentals, joint 
          facility rents, other rents, depreciation, joint facility, 
          repairs billed to others, and other (accounts XX-22-01, XX-22-
          42, XX-22-40, XX-22-48, XX-22-39, 12-22-00, 50-22-00, 31-22-00 
          to 38-22-00 inclusive, 62-22-00, 40-22-98, and XX-22-99).

                             Other Equipment

1242.43 Administration (account XX-27-01).
1242.44 Trucks, trailers, and containers (revenue service) and floating 
          equipment (revenue service) (accounts XX-23-43 and XX-23-44).
1242.45 Passenger and other revenue equipment (account XX-27-45).
1242.46 Computers and data processing equipment (account XX-27-46).
1242.47 Machinery (account XX-27-40).
1242.48 Work and other non-revenue equipment (account XX-27-47).
1242.49 Equipment damaged (account XX-27-48).
1242.50 Fringe benefits (account 12-27-00).
1242.51 Dismantling retired property and depreciation (accounts XX-27-39 
          and 62-27-00).
1242.52 Lease rentals--debit and credit, other rents--debit and credit, 
          repairs billed to others--credit (accounts 31-27-00, 32-27-00, 
          35-27-00, 36-27-00, and 40-27-98).
1242.53 Joint facility rents--debit and credit and joint facility--debit 
          and credit (accounts 33-27-00, 34-27-00, 37-27-00, and 38-27-
          00).
1242.54 Other and casualties and insurance (accounts XX-27-99 and 50-27-
          00).

                   Operating Expenses--Transportation

                            Train Operations

1242.55 Administration (account XX-51-01).
1242.56 Engine crews and train crews (accounts XX-51-56 and XX-51-57).
1242.57 Dispatching trains (account XX-51-58).
1242.58 Operating signals and interlockers, operating drawbridges, 
          highway crossing protection (accounts XX-51-59, XX-51-60, and 
          XX-51-61).
1242.59 Train inspection and lubrication (account XX-51-62).
1242.60 Locomotive fuel, electric power purchased/produced for motive 
          power, and servicing locomotives (accounts XX-51-67, XX-51-68, 
          and XX-51-69).
1242.61 Freight lost or damaged--solely related (to train) (account 51-
          51-00).
1242.62 Clearing wrecks (account XX-51-63).
1242.63 Fringe benefits (account 12-51-00).
1242.64 Joint facility--debit and credit (accounts 37-51-00 and 38-51-
          00).
1242.65 Other and casualties and insurance (accounts XX-51-99 and 50-51-
          00).

                             Yard Operations

1242.66 Administration (account XX-52-01).
1242.67 Switch crews; controlling operations; yard and terminal 
          clerical; locomotive fuel; electric power purchased/produced 
          for motive power; operating switches, signals, retarders, and 
          humps; and servicing locomotives (accounts XX-52-64, XX-52-65, 
          XX-52-66, XX-52-59, XX-52-67, XX-52-68, and XX-52-69).
1242.68 Freight lost or damaged--solely related (to yard) (account 51-
          52-00).
1242.69 Clearing wrecks (account XX-52-63).
1242.70 Fringe benefits (account 12-52-00).
1242.71 Joint facility--debit and credit (accounts 37-52-00 and 38-52-
          00).
1242.72 Other and casualties and insurance (accounts XX-52-99 and 50-52-
          00).

                    Train and Yard Operations Common

1242.73 Cleaning car interiors and freight lost and damaged--all other 
          (accounts XX-53-70 and 51-53-00).

[[Page 172]]

1242.74 Adjusting and transferring loads, and car loading devices and 
          grain doors (accounts XX-33-71 and XX-33-72).
1242.75 Fringe benefits (account 12-53-00).

                     Specialized Service Operations

1242.76 Administration; pickup and delivery, marine line haul and rail 
          substitute service; loading, unloading and local marine; 
          protective services; freight lost or damaged--solely related; 
          fringe benefits; casualties and insurance; joint facility, and 
          other (accounts XX-34-01, XX-34-73, XX-34-74, XX-34-75, 51-34-
          00, 12-34-00, 50-34-00, 37-34-00, 38-34-00, and XX-34-99).

                    Administrative Support Operations

1242.77 Administration (account XX-55-01).
1242.78 Employees performing clerical and accounting functions, and loss 
          and damage claims processing (accounts XX-55-76 and XX-55-78).
1242.79 Communication systems operations (account XX-55-77).
1242.80 Fringe benefits (account 12-55-00).
1242.81 Joint facility--debit and credit (accounts 37-55-00 and 38-55-
          00).
1242.82 Other and casualties and insurance (accounts XX-55-99 and 50-55-
          00).

                           Operating Expenses

                       General and Administration

1242.83 Officers--general superintendence; accounting, auditing and 
          finance; management services and data processing; personnel 
          and labor relations; legal and secretarial; research and 
          development; writedown of uncollectible accounts; property 
          taxes; other taxes except on corporate income or payrolls; and 
          other (accounts XX-63-01, XX-63-86, XX-63-87, XX-63-91, XX-63-
          92, XX-63-94, 63-63-00, 64-63-00, 65-63-00, and XX-63-99).
1242.84 Marketing, sales, and public relations and advertising (accounts 
          XX-63-88, XX-63-89, and XX-63-93).
1242.85 Fringe benefits (account 12-63-00).
1242.86 Industrial development (account XX-61-90).
1242.87 Joint facility--debit and credit and casualties and insurance 
          (accounts 37-63-00, 38-63-00, and 50-63-00).

    Authority: 49 U.S.C. 721, 11142.

    Source: 43 FR 7637, Feb. 24, 1978, unless otherwise noted.
    Note: The report forms prescribed by part 1242 are available upon 
request from the Office of Economics, Environmental Analysis, and 
Administration, Surface Transportation Board, Washington, DC 20423-0001.

                          List of Instructions



Sec.  1242.00  Separation of common operating expenses.

    (a) Commencing with annual reports for the year 1978 or for any 
portion thereof until further order, all class I railroad companies 
including class I switching and terminal companies subject to section 20 
of the Interstate Commerce Act as amended shall separate operating 
expenses common to both freight service and passenger service in 
accordance with the regulation in this part.
    (b) The carrier shall maintain records supporting its common 
operating expense apportionments to freight and passenger services. The 
carrier shall report common expense apportionments to the Board as 
required.

[43 FR 7637, Feb. 24, 1978, as amended at 67 FR 57534, Sept. 11, 2002]

                                 General



Sec.  1242.01  Expenses solely related to freight service and passenger service.

    The Uniform System of Accounts for Railroad Companies (49 CFR part 
1201) requires that carriers assign directly to freight service or to 
passenger service, including allied services, the expenses, taxes, and 
purchased services incurred solely for the benefit of either freight or 
passenger service.



Sec.  1242.02  Common expenses.

    The Uniform System of Accounts also requires that carriers assign to 
common expense accounts the remaining expenses, taxes and purchased 
services which are not solely related to either freight or passenger 
service. The following instructions govern the separation of common 
expense accounts between freight and passenger services.



Sec.  1242.03  Made by accounting divisions.

    The separation shall be made by accounting divisions, where such 
divisions are maintained, and the aggregate of the accounting divisions 
reported for the quarter and for the year.

[[Page 173]]



Sec.  1242.04  Special tests.

    When the separation of common expense accounts between freight and 
passenger services is based upon special tests or service unit factors, 
such tests shall be made at sufficiently frequent intervals to represent 
actual operating conditions. The service unit factors used are those of 
the reporting period.



Sec.  1242.05  Operating expense account number notation.

    (a) The operating expense account numbers consist of a six-digit 
coding structure divided into three two-digit groups. The first two-
digit group denotes natural expenses; the second group denotes 
activities/subactivities for freight, passenger or common service; and 
the third group signifies applicable function assignment.
[GRAPHIC] [TIFF OMITTED] TC03MR91.050

    (b) For reporting purposes, four natural expense categories are 
utilized. The categories are: salaries and wages (account 11-XX-XX); 
material, tools, supplies, fuels and lubricants (account 21-XX-XX); 
purchased services (accounts 31-XX-XX to 41-XX-XX, inclusive); and 
general (accounts 61-XX-XX to 65-XX-XX, inclusive, 51-XX-XX, 52-XX-XX, 
53-XX-XX and 12-XX-XX).
    (c) The symbol ``XX'' in the first two-digit group is used 
throughout the separation instructions to denote more than one natural 
expense associated with the same activity/subactivity-function account 
structure. For reporting purposes, the natural expense account numbers 
represented by ``XX'' include:

11--Salaries and wages;
21--Materials, tools, supplies, fuels, and lubricants;
30 or 41--Purchased services:
    30--Summation of certain purchased service accounts;
    41--Other purchased services;
61--General.

    (d) The ``30'' natural expense designation indicates a summation of 
specific purchased service accounts that are reported in total rather 
than individually. The specific accounts under the way and structures 
activity except for administration functions include 39-1X-XX, repairs 
billed by others, Dr.; 40-1X-XX, repairs billed to others, cr.; and 41-
1X-XX, other purchased services. For the equipment activity excluding 
administration functions, the ``30'' designation denotes the summation 
of 39-2X-XX and 41-2X-XX.
    (e) The ``41'' natural expense designation (other purchased 
services) is the purchased service category of the ``XX'' code for the 
following:
    (1) Way and structures activity administration--function accounts,
    (2) Equipment activity administration--function accounts,
    (3) Transportation activity expense accounts, and
    (4) General and administration activity expense accounts.
    (f) The ``61'' general natural expense designation is applicable to 
all accounts with the ``XX'' symbol except transportation, train and 
yards accounts (XX-(33/43/53)-XX).
    (g) The natural expense account number ``50'' is used throughout the 
separation instructions to indicate the summation of accounts 52-XX-XX, 
Other casualties, and 53-XX-XX, Insurance, that are reported as one 
item, ``Casualties and Insurance,'' (50-XX-XX).
    (h) The number ``98'' in the function account group (last two 
digits) is used in the separation rules to designate the summation of a 
natural expense consisting of more than one functional assignment that 
is reported as one item. This includes Repairs Billed to Others, Cr.--
Equipment (40-2X-XX). For example, the locomotive subactivity contains 
accounts 40-(21/24/26)-40, 40-(21/24/26)-41, and 40-(21/24/26)-48 which 
are treated as 40-(21/24/26)-98.



Sec.  1242.06  Instructions for separation.

    (a) Certain instructions for separating common expense accounts 
(dependent accounts) between freight and passenger services base the 
allocation on the proportional freight/passenger separation of other 
common expense accounts (independent accounts). The dependent account is 
frequently identified by an ``XX'' symbol in the natural expense 
position (first two digits) with corresponding independent accounts also 
identified by the ``XX'' natural expense symbol. Unless otherwise 
stated,

[[Page 174]]

the applicable natural expense associated with ``XX'' symbol shall be 
the same for both the dependent and independent accounts.
    (b) To illustrate, Sec.  1242.10 provides instructions for 
separating common Way and Structures, Administration--Track accounts 
(dependent accounts) designated by XX-19-02. The separation is based on 
certain other common Way and Structures accounts including Roadway--
Running, XX-17-10, and Roadway--Switching, XX-18-10.
    (c) As Sec.  1242.05 states, the ``XX'' symbol denotes the following 
natural expenses for Way and Structures administration functions:

11--Salaries and wages,
21--Materials, tools, supplies, fuels, and lubricants,
41--Other purchased services, and
61--General.


These natural expenses shall be individually applied to the separation 
rules in Sec.  1242.10. In each case, the independent accounts providing 
the basis for freight/passenger separation of the dependent account 
shall have the same natural expense designation. For example, the basis 
of separating account 11-19-02, Salaries and Wages, Way and Structures, 
Administration--Track, would be based on certain independent accounts 
including 11-17/18-10, Salaries and Wages, Way and Structures, Running/
Switching, Repair and Maintenance, Roadway.

                 Operating Expenses--Way and Structures



Sec.  1242.10  Administration--track (account XX-19-02).

    Separate common administration--track expenses between freight and 
passenger services in the same proportion as the common expenses of the 
following accounts are separated between freight and passenger services:

Roadway:
    Running (XX-17-10)
    Switching (XX-18-10)
Ties:
    Running (21-17-13)
    Switching (21-18-13)
Rails:
    Running (21-17-14)
    Switching (21-18-14)
Other Track Materials:
    Running (21-17-15)
    Switching (21-18-15)
Ballast:
    Running (21-17-16)
    Switching (21-18-16)
Track Laying and Surfacing:
    Running (XX-17-17)
    Switching (XX-18-17)
Road Property Damaged:
    Running (XX-17-48)
    Switching (XX-18-48)
    Other (XX-19-48)
Dismantling Retired Road Property:
    Running (XX-17-39)
    Switching (XX-18-39)
    Other (XX-19-39)



Sec.  1242.11  Administration--bridges and buildings (account XX-19-03).

    Separate common administration--bridges and buildings expenses 
between freight and passenger services in the same proportion as the 
common expenses of the following accounts are separated between freight 
and passenger services:

Tunnels and Subways:
    Running (XX-17-11)
    Switching (XX-18-11)
Bridges and Culverts:
    Running (XX-17-12)
    Switching (XX-18-12)
    Electric Power Systems (XX-19-21)
    Station and Office Buildings (XX-19-23)
Shop Buildings:
    Locomotives (XX-19-24)
    Other Equipment (XX-19-26)
    Locomotive Servicing Facilities (XX-19-27)
    Miscellaneous Buildings and Structures (XX-19-28)



Sec.  1242.12  Administration--signals (account XX-19-04).

    Separate common administration--signals expenses between freight and 
passenger services in the same proportion as the common expenses of the 
following accounts are separated between freight and passenger services:

Signals and Interlockers:
    Running (XX-17-19)
    Switching (XX-18-19)



Sec.  1242.13  Administration--communica- tions (account XX-19-05).

    Separate common administration--communications expenses between 
freight and passenger services in the same proportion as the common 
expenses of the following accounts are separated between freight and 
passenger services:

Communications Systems (XX-19-20)

[[Page 175]]



Sec.  1242.14  Administration--other (account XX-19-06).

    Separate common administration--other expenses between freight and 
passenger services in the same proportion as the common expenses of the 
following accounts are separated between freight and passenger services:

Administration:
    Track (XX-19-02)
    Bridges and Buildings (XX-19-03)
    Signals (XX-19-04)
    Communications (XX-19-05)



Sec.  1242.15  Roadway, tunnels and subways, bridges and culverts, ties, rails, other track material, ballast, track laying and surfacing, and road property 
          damaged (accounts XX-17-10 to XX-18-12 inclusive, 21-17-13 to 
          21-18-16 inclusive, XX-17-17, XX-18-17, XX-17-48, and XX-18-
          48).

    The expenses for running and switching subactivities shall be 
separated between freight service and passenger service as follows:
    (a) Switching tracks. (1) Yard: Expenses for yards used in common by 
freight and passenger services shall be apportioned on the basis of the 
respective switching locomotive unit-hours in the common yards.
    (2) Way: Where the tracks at any one location are used in common by 
both freight and passenger services, expenses may be assigned to that 
service which makes the dominant use of them.
    (b) Running tracks. The expenses of tracks used in common by both 
services shall be apportioned on the basis of gross ton-miles (including 
locomotive ton-miles) handled over these tracks in the respective 
services.



Sec.  1242.16  Road property damaged--other (account XX-19-48).

    Separate common expenses in proportion to the total common expenses 
assigned to freight/passenger from the following Way and Structures 
accounts:

Road Property Damaged--Running (XX-17-48)
Road Property Damaged--Switching (XX-18-48)



Sec.  1242.17  Signals and interlockers (accounts XX-17-19 and XX-18-19).

    Separate common expenses on the basis of the total train-hours in 
running service, and/or the yard-switching plus train switching hours in 
the switching service over the tracks on which the common signals and 
interlockers are used.



Sec.  1242.18  Communication systems (account XX-19-20).

    Separate common expenses on the basis of the common expense 
separation in:

Way and Structures--Administration--Track, Bridges and Culverts, and 
Signals (accounts XX-19-02 to XX-19-04, inclusive)
Equipment--Administration--Locomotives and Other Equipment (accounts XX-
26-01 and XX-27-01)
Transportation--Administration--Train, Yard, and Administrative Support 
(accounts XX-51-01, XX-52-01, and XX-55-01)
Dispatching Trains (Account XX-51-58)



Sec.  1242.19  Electric power systems (account XX-19-21).

    Separate common expenses on basis of common expenses of electric 
power purchased or produced for motive power (accounts XX-51-68 and XX-
52-68).



Sec.  1242.20  Highway grade crossings (accounts XX-17-22 and XX-18-22).

    Separate running and switching common expenses according to 
distribution of the running and switching portions only of common 
expense accounts listed in Sec.  1242.10, Administration--Track (account 
XX-19-02).



Sec.  1242.21  Station and office buildings (account XX-19-23).

    If the sum of the direct freight and the direct passenger expenses 
is more than 50 percent of the total charges to this account for an 
accounting division, separate the common expenses on the basis of the 
directly assigned expenses in this account for the accounting division 
involved. If the sum of the direct freight and the direct passenger 
expenses does not aggregate to more than 50 percent of the total charges 
for an accounting division, the common expenses should be separated on 
the basis of special test. Where common

[[Page 176]]

expenses exist in an accounting division but the direct expenses are 
applicable to only one service, i.e., freight or passenger, the common 
expenses shall be separated on the basis of a special test. If the 
accounting is performed on a system basis rather than by accounting 
divisions, the common expenses shall be separated on the basis of a 
special study.



Sec.  1242.22  Shop buildings--locomotives (account XX-19-24).

    Separate common expenses according to distribution of common 
expenses in the following accounts:

Machinery Repair (XX-26-40)
Locomotive--Repair and Maintenance (XX-26-41)



Sec.  1242.23  Shop buildings--freight cars (account XX-13-25).

    These accounts pertain solely to freight service and contain no 
common expense for separation herein.



Sec.  1242.24  Shop buildings--other equipment (account XX-19-26).

    Assign directly to freight (or as particular facts suggest 
otherwise).



Sec.  1242.25  Locomotive servicing facilities (account XX-19-27).

    Separate common expenses according to distribution of common 
expenses in the following accounts:

Locomotive Fuel (XX-51-67 and XX-52-67)
Electric Power Purchased or Produced for Motive Power (XX-51-68 and XX-
52-68)
Servicing Locomotives (XX-51-69 and XX-52-69)



Sec.  1242.26  Miscellaneous building and structures (account XX-19-28).

    Separate common expenses as specific facts indicate or according to 
distribution of common expenses listed in Sec.  1242.10, Administration-
Track (account XX-19-02).



Sec.  1242.27  Coal marine terminals, ore marine terminals, TOFC/COFC terminals, other marine terminals, motor vehicle loading and distribution facilities, and 
          facilities for other specialized service operations (accounts 
          XX-13-29 to XX-13-35, inclusive).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.



Sec.  1242.28  Roadway machines, small tools and supplies, and snow removal (accounts XX-19-36 to XX-19-38, inclusive).

    Separate common expenses according to distribution of common 
expenses listed in Sec.  1242.10, Administration--Track (account XX-19-
02).



Sec.  1242.29  Fringe benefits (accounts 12-17-00, 12-18-00, and 12-19-00).

    Separate common expenses in the running subactivity in the same 
proportion as the salaries and wages, way and structures, common 
expenses in all accounts with a designated running subactivity. Separate 
common expenses in the switching subactivity in the same proportion as 
the salaries and wages, way and structure, common expense accounts with 
a designated switching activity. Separate common expenses in the other 
subactivity in the same proportion as the salaries and wages, way and 
structures, common expenses in all accounts with a designated other 
subactivity.



Sec.  1242.30  Dismantling retired road property and depreciation (accounts XX-17-39, XX-18-39, XX-19-39, 62-17-00, 62-18-00, and 62-19-00).

    Separate common expenses in each account for each subactivity 
(running, switching and other) in proportion to the separation of common 
repair and maintenance expenses associated with the particular common 
properties depreciated and/or dismantled.



Sec.  1242.31  Lease rentals--debit and credit and other rents--debit and credit (accounts 31-17-00, 31-18-00, 31-19-00, 32-17-00, 32-18-00, 32-19-00, 35-17-00, 
          35-18-00, 35-19-00, 36-17-00, 36-18-00, and 36-19-00).

    (a) Separate common debit expense accounts in each subactivity 
(running,

[[Page 177]]

switching and other) in proportion to the separation of solely related 
freight or passenger service in each account. If there are no solely 
related expenses in an account or if the solely related expenses are 
assignable entirely to freight or to passenger service, separate common 
debit expense accounts on the basis of the same percentages calculated 
for the separation of administration--other (account XX-19-06).
    (b) Separate all common credit expense accounts on the same 
percentages calculated for the separation of administration--other 
(account XX-19-06).



Sec.  1242.32  Joint facility rents--debit and credit and joint facility--debit and credit (accounts 33-17-00, 33-18-00, 33-19-00, 34-17-00, 34-18-00, 34-19-00, 
          37-17-00, 37-18-00, 37-19-00, 38-17-00, 38-18-00, and 38-19-
          00).

    (a) Solely related (freight or passenger service) debit expense 
accounts in each subactivity (running, switching and other) shall be 
assigned according to the use made of each facility by the reporting 
carrier, regardless of the use by other carriers. Common debit expenses 
shall be separated on the basis of the percentage separations of the 
solely related expenses in each individual account. If there are no 
solely related expenses or if the solely related expenses are assigned 
entirely to freight or to passenger service, separate common debit 
expenses on the same percentages calculated for the separation of 
administrative--other (account XX-19-06).
    (b) Separate all common credit expense accounts on the same 
percentages calculated for the separation of administration--other 
(account XX-19-06).



Sec.  1242.33  Other expenses and casualties and insurance (accounts XX-17-99, XX-18-99, XX-19-99, 50-17-00, 50-18-00, and 50-19-00).

    Separate common expenses on the basis of the percentages calculated 
for the separation of administrative--other (account XX-19-06).

                      Operating Expenses--Equipment



locomotives--Table of Contents





Sec.  1242.34  Administration (account XX-26-01).

    Separate common expenses according to distribution of common 
expenses in the following accounts:

Repair and Maintenance (XX-26-41)
Machinery Repair (XX-26-40)
Equipment Damage (XX-26-48)
Dismantling Retired Property (XX-26-39)



Sec.  1242.35  Repair and maintenance (account XX-26-41).

    (a) Where the carrier maintains records of the repairs by individual 
locomotive units or classes of locomotive units:
    (1) If individual locomotive units or classes of locomotive units 
are used exclusively in road-freight, road-passenger, yard-freight, or 
yard-passenger service, the separation shall be actual.
    (2) If individual locomotive units or classes or locomotive units 
are used interchangeably (common) in road-freight (including train-
switching), road passenger (including train switching), yard-freight or 
yard-passenger service, separate the heavy shop repairs between these 
services on the basis of run-out unit miles of individual locomotive 
units or classes of locomotive units since the previous shopping; and 
separate the cost of running repairs between such services on the basis 
of the miles run by the individual locomotive unit or class of 
locomotive unit in each service during the accounting period for which 
the separation is being made.
    (b) Where the carrier maintains records of heavy shop repair costs 
by individual locomotive units or classes of locomotive units, but does 
not maintain records of the cost of running repairs by individual 
locomotive units:
    (1) The heavy shop repairs shall be separated as indicated in 
paragraph (a) of this section.
    (2) The common expenses of running repairs shall be separated among 
road-freight (including train switching), road-passenger (including 
train switching), yard-freight and yard-passenger services on the basis 
of locomotive unit miles or locomotive ton-miles for the

[[Page 178]]

accounting period for which the separation is being made.
    (c) Where the carrier does not maintain records of either heavy shop 
repairs or running repairs by individual locomotive units or classes of 
locomotive units: The expenses shall be separated among road-freight 
service (including train-switching), road-passenger service (including 
train switching), yard freight, and yard-passenger services, on the 
basis of locomotive unit-miles or locomotive ton-miles for the 
accounting period for which the separation is being made.



Sec.  1242.36  Machinery repair and equipment damaged (accounts XX-26-40 and XX-26-48).

    Separate common expenses according to separation of common expenses 
in repair and maintenance (account XX-26-41).



Sec.  1242.37  Dismantling retired property and depreciation (accounts XX-26-39 and 62-26-00).

    Separate common expenses in each account in proportion to the 
separation of common repair and maintenance expenses associated with the 
particular common properties depreciated and/or dismantled.



Sec.  1242.38  Fringe benefits (account 12-26-00).

    Separate common expenses in proportion to the split of common 
salaries and wages in administration, locomotive repair and maintenance, 
machinery repair, equipment damaged, and dismantling retired road 
property (accounts 11-26-01, 11-26-41, 11-26-40, 11-26-48, and 11-26-
39).



Sec.  1242.39  Lease rentals--debit and credit, other rents--debit and credit, and repairs billed to others (accounts 31-26-00, 32-26-00, 35-26-00, 36-26-00 and 
          40-26-98).

    (a) Separate common debit expense accounts in proportion to the 
assignment of solely related freight or passenger service in each 
individual debit account. If there are no solely related expenses or if 
the solely related expenses are assigned entirely to freight or 
passenger service, separate common debit expense accounts on the same 
percentage basis calculated for the separation of administration 
(account XX-26-01).
    (b) Separate all common credit expense accounts on the same 
percentages calculated for the separation of administration (account XX-
26-01).



Sec.  1242.40  Joint facility rents--debit and credit, and joint facility--debit and credit (accounts 33-26-00, 34-26-00, 37-26-00 and 38-26-00).

    (a) Solely related freight and passenger debit expense accounts 
shall be assigned according to the use made of each facility by the 
reporting carrier, regardless of the use by other carriers. Common debit 
expenses shall be separated on the basis of the percentage separation of 
the solely related expenses; or if the solely related expenses are 
assigned entirely to freight or passenger service, separate common 
expenses on the same percentages calculated for the separation of 
administration (account XX-26-01).
    (b) Separate all common credit expense accounts on the same 
percentages calculated for the separation of administration (account XX-
26-01).



Sec.  1242.41  Other and casualties and insurance (accounts XX-26-99 and 50-26-00).

    Separate common expenses on the basis of percentages calculated for 
the separation of administration (account XX-26-01).

                              freight cars



Sec.  1242.42  Administration, repair and maintenance, machinery repair, equipment damaged, dismantling retired property, fringe benefits, other casualties and 
          insurance, lease rentals, joint facility rents, other rents, 
          depreciation, joint facility, repairs billed to others, and 
          other (accounts XX-22-01, XX-22-42, XX-22-40, XX-22-48, XX-22-
          39, 12-22-00, 50-22-00, 31-22-00 to 38-22-00 inclusive, 62-22-
          00, 40-22-98 and XX-22-99).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.

[[Page 179]]

                             other equipment



Sec.  1242.43  Administration (account XX-27-01).

    Separate common expenses according to freight/passenger separation 
of the following accounts:

Passenger and Other Revenue Equipment (XX-27-45)
Work and Other Non-Revenue Equipment (XX-27-47)



Sec.  1242.44  Trucks, trailers, and containers (revenue service) and floating equipment (revenue service) (accounts XX-23-43 and XX-23-44).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.



Sec.  1242.45  Passenger and other revenue equipment (account XX-27-45).

    Separate as particular facts suggest.



Sec.  1242.46  Computers and data processing equipment (account XX-27-46).

    If the sum of the direct freight and the direct passenger expenses 
is more than 50 percent of the total charges to this account for an 
accounting division, separate the common expenses on the basis of the 
directly assigned expenses in this account for the accounting division 
involved. If the sum of the direct freight and the direct passenger 
expenses does not aggregate 50 percent of the total charges for an 
accounting division, the common expenses shall be separated on the basis 
of a special test. If common expenses exist in an accounting division 
but the direct expenses are applicable to only one service, i.e., 
freight or passenger, the common expenses shall be separated on the 
basis of a special test. If the accounting is performed on a system 
basis rather than by accounting divisions, follow the intent of the 
above instructions.



Sec.  1242.47  Machinery (account XX-27-40).

    Separate common expenses on the basis of the freight/passenger 
separation of administration (account XX-27-01).



Sec.  1242.48  Work and other non-revenue equipment (account XX-27-47).

    Separate common expenses according to distribution of common 
expenses in Way and structures--administration--other (account XX-19-
06).



Sec.  1242.49  Equipment damaged (account XX-27-48).

    Separate common expenses according to distribution of common 
expenses in machinery, passenger and other revenue equipment, computer 
and data processing equipment and work and other non-revenue equipment 
accounts (accounts XX-27-40, XX-27-45, XX-27-46, and XX-27-47).



Sec.  1242.50  Fringe benefits (account 12-27-00).

    Separate common expenses in proportion to the percentage separation 
of common salaries and wages in administration (account XX-27-01).



Sec.  1242.51  Dismantling retired property and depreciation (accounts XX-27-39 and 62-27-00).

    Separate common expenses in proportion to the separation of common 
repair and maintenance expenses associated with the particular common 
property depreciated and/or dismantled.



Sec.  1242.52  Lease rentals--debit and credit, other rents--debit and credit, repairs billed to others--credit (accounts 31-27-00, 32-27-00, 35-27-00, 36-27-
          00, and 40-27-98).

    (a) Separate common debit expense accounts in proportion to the 
separation of solely related (freight or passenger service) in each 
individual account. If there are no solely related expenses or if the 
solely related expenses are assignable entirely to freight or passenger 
service, separate common debit expense accounts on the same percentages 
calculated for the separation of administration (account XX-27-01).
    (b) Separate common credit expense accounts on the basis of the same 
percentages calculated for the separation of administration (account XX-
27-01).

[[Page 180]]



Sec.  1242.53  Joint facility rents--debit and credit and joint facility--debit and credit (accounts 33-27-00, 34-27-00, 37-27-00 and 38-27-00).

    (a) Solely related freight and passenger service debit expense 
accounts shall be assigned according to the use made of each facility by 
the reporting carrier, regardless of the use made of the facility by 
other carriers. Common debit expense accounts shall be separated on the 
basis of the percentage separation of the solely related expenses in 
each individual account. If there are no solely related expenses or if 
the solely related expenses are assigned entirely to freight or 
passenger service, separate common expenses on the same percentages 
calculated for the separation of administration (account XX-27-01).
    (b) Separate all common credit expense accounts on the basis of the 
same percentages calculated for the separation of administration 
(account XX-27-01).



Sec.  1242.54  Other and casualties and insurance (accounts XX-27-99 and 50-27-00).

    Separate common expenses on the basis of the percentages calculated 
for the separation of administration (account XX-27-01).

                   Operating Expenses--Transportation



train operations--Table of Contents





Sec.  1242.55  Administration (account XX-51-01).

    Separate common expenses according to distribution of common 
expenses in the following accounts:

Engine Crews (XX-51-56)
Train Crews (XX-51-57)
Dispatching Trains (XX-51-58)
Operating Signals and Interlockers (XX-51-59)
Operating Drawbridges (XX-51-60)
Highway Crossing Protection (XX-51-61)
Train Inspection and Lubrication (XX-51-62)
Locomotive Fuel (XX-51-67)
Electric Power Purchased/Produced for Motive Power (XX-51-68)
Servicing Locomotives (XX-51-69)
Clearing Wrecks (XX-51-63)



Sec.  1242.56  Engine crews and train crews (accounts XX-51-56 and XX-51-57).

    Separate common expenses on the basis of direct assignment or if 
there are no directly assignable expenses, separate on the basis of 
train hours, including train switching hours.



Sec.  1242.57  Dispatching trains (account XX-51-58).

    Separate common expenses on the basis of train hours, including 
train switching hours.



Sec.  1242.58  Operating signals and interlockers, operating drawbridges, highway crossing protection (accounts XX-51-59, XX-51-60 and XX-51-61).

    Separate common expenses on the basis of total train hours 
(including train switching hours) of the particular common operating 
divisions or track segment on which the common signals, interlockers, 
drawbridges and highway crossings are located.



Sec.  1242.59  Train inspection and lubrication (account XX-51-62).

    Separate common expenses on basis of directly assigned expenses. If 
there are no directly assignable expenses, separate on the basis of 
train miles.



Sec.  1242.60  Locomotive fuel, electric power purchased/produced for motive power and servicing locomotives (accounts XX-51-67, XX-51-68 and XX-51-69).

    Separate common expenses in each account on basis of direct 
expenses. If there are no direct expenses, separate on the basis of 
train hours and way-switching service hours.



Sec.  1242.61  Freight lost or damaged--solely related (to train) (account 51-51-00).

    Separate common expenses on the basis of proportion of the solely 
related expenses assigned to freight and passenger services or on the 
basis of a special study.



Sec.  1242.62  Clearing wrecks (account XX-51-63).

    Separate common expenses according to specific circumstances.

[[Page 181]]



Sec.  1242.63  Fringe benefits (account 12-51-00).

    Separate common expenses in proportion to the percentage separation 
calculated for the salaries and wages account--administration (account 
11-51-01).



Sec.  1242.64  Joint facility--debit and credit (accounts 37-51-00 and 38-51-00).

    (a) Solely related freight and passenger service debit expense 
accounts shall be assigned according to the use made of each facility by 
the reporting carrier, regardless of the use made of the facility by 
other carriers. Common debit expense accounts shall be separated on the 
basis of the percentage separation of the solely related expenses. If 
there are no solely related expenses or if the solely related expenses 
are assigned entirely to either freight or passenger service, separate 
common expenses on the same percentages calculated for the separation of 
administration (account XX-51-01).
    (b) Separate common credit expense accounts on the basis of the 
percentages calculated for the separation of administration (account XX-
51-01).



Sec.  1242.65  Other and casualties and insurance (accounts XX-51-99 and 50-51-00).

    Separate common expenses on the basis of the percentages calculated 
for the separation of administration (account XX-51-01).

                             yard operations



Sec.  1242.66  Administration (account XX-52-01).

    Separate common expenses according to distribution of common 
expenses in the following accounts:

Switch Cews (XX-52-64)
Controlling Operations (XX-52-65)
Yard and Terminal Clerical (XX-52-66)
Operating Switches, Signals, Retarders and Humps (XX-52-59)
Locomotive Fuel (XX-52-67)
Servicing Locomotives (XX-52-69)
Electric Power Purchased/Produced for Motive Power (XX-52-68)
Clearing Wrecks (XX-52-63)



Sec.  1242.67  Switch crews; controlling operations; yard and terminal clerical; locomotive fuel; electric power purchased/produced for motive power; operating 
          switches signals, retarders, and humps; and servicing 
          locomotives (accounts XX-52-64, XX-52-65, XX-52-66, XX-52-59, 
          XX-52-67, XX-52-68 and XX-52-69).

    Separate common expenses on the basis of the distribution of freight 
and passenger yard-switching hours in those yards common to both freight 
and passenger services.



Sec.  1242.68  Freight lost or damaged--solely related (to yard) (account 51-52-00).

    Separate common expenses on the basis of the solely related freight 
and passenger expenses or on the basis of a special study.



Sec.  1242.69  Clearing wrecks (account XX-52-63).

    Separate common expenses according to specific circumstances.



Sec.  1242.70  Fringe benefits (account 12-52-00).

    Separate common expenses in proportion to the percentage separation 
calculated for the salaries and wages administration account (account 
11-52-01).



Sec.  1242.71  Joint facility--debit and credit (accounts 37-52-00 and 38-52-00).

    (a) Solely related freight and passenger service debit expenses 
accounts shall be assigned according to the use made of each facility by 
the reporting carriers, regardless of the use made of the facility by 
other carriers. Common debit expenses shall be separated on the basis of 
the percentage separation of the solely related expenses. If there are 
no solely related expenses or if the solely related expenses are 
assigned entirely to freight or passenger service, separate common 
expenses on the same percentages calculated for the separation of 
administration (account XX-52-01).
    (b) Separate common credit expense accounts on the basis of the 
percentages calculated for the separation of administration (account XX-
51-01).

[[Page 182]]



Sec.  1242.72  Other and casualties and insurance (accounts XX-52-99 and 50-52-00).

    Separate common expenses on the basis of the percentages calculated 
for the separation of administration (account XX-52-01).

                    train and yard operations common



Sec.  1242.73  Cleaning car interiors and freight lost and damaged--all other (accounts XX-53-70 and 51-53-00).

    Separate common expenses on basis of solely related freight and 
passenger expenses or special study.



Sec.  1242.74  Adjusting and transferring loads, and car loading devices and grain doors (accounts XX-33-71 and XX-33-72).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.



Sec.  1242.75  Fringe benefits (account 12-53-00).

    Separate common expenses in proportion to the freight/passenger 
separation calculated for the salaries and wages--cleaning car interiors 
common account (account 11-53-70).

                     specialized service operations



Sec.  1242.76  Administration; pickup and delivery, marine line haul, and rail substitute service; loading, unloading and local marine; protective services; 
          freight lost or damaged--solely related; fringe benefits; 
          casualties and insurance; joint facility, and other (accounts 
          XX-34-01, XX-34-73, XX-34-74, XX-34-75, 51-34-00, 12-34-00, 
          50-34-00. 37-34-00, 38-34-00 and XX-34-99).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.

                    administrative support operations



Sec.  1242.77  Administration (account XX-55-01).

    Separate common expenses in the same proportion as common expenses 
are separated in employees performing clerical and accounting functions, 
communication systems operations and loss and damage claims processing 
(accounts XX-55-76, XX-55-77 and XX-55-78).



Sec.  1242.78  Employees performing clerical and accounting functions, and loss and damage claims processing (accounts XX-55-76 and XX-55-78).

    If the sum of the direct freight and the direct passenger expenses 
is more than 50 percent of the total charges to this account for an 
accounting division, separate the common expenses on the basis of the 
directly assigned expenses in this account for the particular accounting 
division. If the sum of the direct freight and the direct passenger 
expenses does not aggregate 50 percent of the total charges for an 
accounting division, the common expenses shall be separated on the basis 
of special test. If common expenses exist in an accounting division but 
the direct expenses are applicable to only one service, i.e., freight or 
passenger, and even though the direct charges are over 50 percent of the 
total charges, the common expenses shall be separated on the basis of a 
special test. If the accounting is performed on a system basis rather 
than by accounting division, follow the intent of the above 
instructions.



Sec.  1242.79  Communication systems operations (account XX-55-77).

    Separate common expenses on bases of the percentages calculated for 
the separation of Communication Systems (account XX-19-20), Sec.  
1242.18.



Sec.  1242.80  Fringe benefits (account 12-55-00).

    Separate common expenses in proportion to the percentage separation 
calculated for the salaries and wages--administration account (account 
11-55-01).



Sec.  1242.81  Joint facility--debit and credit (accounts 37-55-00 and 38-55-00).

    Solely related freight and passenger service debit expense accounts 
shall be assigned according to the use made of each facility by the 
reporting carriers, regardless of the use made of the facility by other 
carriers. Common debit expenses shall be separated on the basis of the 
percentage separation of the solely related expenses. If there are

[[Page 183]]

no solely related expenses or if the solely related expenses are 
assigned entirely to either freight or passenger service, separate 
common expenses on the same percentages calculated for the separation of 
administration (account XX-55-01).

Separate common credit expenses on the basis of the percentages 
calculated for the separation of administration (account XX-55-01).



Sec.  1242.82  Other and casualties and insurance (accounts XX-55-99 and 50-55-00).

    Separate common expenses on the basis of the percentages calculated 
for the separation of administration (account XX-55-01).

                           Operating Expenses



general and administration--Table of Contents





Sec.  1242.83  Officers--general superintendence; accounting, auditing and finance; management services and data processing; personnel and labor relations; 
          legal and secretarial; research and development; writedown of 
          uncollectible accounts; property taxes; other taxes except on 
          corporate income or payrolls; and other (accounts XX-63-01, 
          XX-63-86, XX-63-87, XX-63-91, XX-63-92, XX-63-94, 63-63-00, 
          64-63-00, 65-63-00 and XX-63-99).

    Separate common expenses in proportion to the separation of all 
other common expenses except General and Administrative Expenses.



Sec.  1242.84  Marketing, sales, and public relations and advertising (accounts XX-63-88, XX-63-89 and XX-63-93).

    Separate each common expense account on the basis of the solely 
related freight and passenger expense accounts.



Sec.  1242.85  Fringe benefits (account 12-63-00).

    Separate the common expenses in proportion to the total common 
salaries and wages expense separation (account 11-XX-XX) determined in 
Sec. Sec.  1242.83 and 1242.84.



Sec.  1242.86  Industrial development (account XX-61-90).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.



Sec.  1242.87  Joint facility--debit and credit and casualties and insurance (accounts 37-63-00, 38-63-00 and 50-63-00).

    Separate the common expenses in proportion to the total of all 
common expense separations determined in Sec. Sec.  1242.83 and 1242.84 
above.
    Note: If compilation of the data in compliance with any of the above 
separation rules results in an undue burden in accounting expense, the 
carrier may request relief from such rules by letter to the Director, 
Bureau of Accounts. If reliable data can be developed through other 
methods and procedures, the carrier may request substitution of such 
methods also by letter to the Director, Bureau of Accounts. In both 
cases, the carrier shall support the request with full details.



PART 1243_QUARTERLY OPERATING REPORTS_RAILROADS--Table of Contents



Sec.
1243.1 Revenues, expenses and income.
1243.2 Condensed balance sheet.
1243.3 Report of fuel cost, consumption, and surcharge revenue.

    Authority: 49 U.S.C. 721, 11145.

    Source: 37 FR 5503, Mar. 16, 1972, unless otherwise noted.
    Note: The report forms prescribed by part 1243 are available upon 
request from the Office of Economics, Environmental Analysis, and 
Administration, Surface Transportation Board, Washington, DC 20423-0001.



Sec.  1243.1  Revenues, expenses and income.

    Commencing with reports for the 3 months beginning January 1, 1972, 
and for subsequent quarters thereafter, until further ordered, all class 
I railroads, except switching and terminal companies, subject to the 
provisions of Part I of the Interstate Commerce Act, be, and they are 
hereby, required to compile and file quarterly reports of revenues, 
expenses and income in accordance with quarterly report Form RE&I, and 
instructions thereon. Such

[[Page 184]]

quarterly reports shall be filed, in duplicate, in the Office of 
Economics, Environmental Analysis, and Administration, Surface 
Transportation Board, Washington, DC 20423, within 30 days after the end 
of the quarter to which they relate.

[37 FR 5503, Mar. 16, 1972, as amended at 67 FR 57534, Sept. 11, 2002]



Sec.  1243.2  Condensed balance sheet.

    Commencing with reports for the 3 months beginning January 1, 1972, 
and for subsequent quarters thereafter, until further ordered, all class 
I railroads, except switching and terminal companies, subject to the 
provisions of Part I of the Interstate Commerce Act, be, and they are 
hereby, required to compile and file quarterly reports of balance sheet 
items in accordance with quarterly report Form CBS, and instructions 
thereon. Such quarterly reports shall be filed, in duplicate, with the 
Office of Economics, Environmental Analysis, and Administration, Surface 
Transportation Board, Washington, DC 20423, within 30 days after the end 
of the quarter to which they relate.

[37 FR 5503, Mar. 16, 1972, as amended at 67 FR 57534, Sept. 11, 2002]



Sec.  1243.3  Report of fuel cost, consumption, and surcharge revenue.

    Commencing with reports for the 3 months beginning October 1, 2007, 
all Class I railroads are required to file quarterly a Report of Fuel 
Cost, Consumption, and Surcharge Revenue, in accordance with the Board's 
reporting form. Such reports shall be filed, in duplicate, with the 
Office of Economics, Environmental Analysis, and Administration, Surface 
Transportation Board, Washington, DC 20423-0001, within 30 days after 
the end of the quarter reported.

                    Appendix to Section 49 CFR 1243.3

OMB Control No. 2140-0014
Expires --------, 2010

                       Railroad Name ------------

  Quarterly Report of Fuel Cost, Consumption, and Surcharge Revenue for
                   the Quarter Ending --------, 20----
   [Instructions: The report shall contain data only for the reported
quarter. Cost and revenue are defined as accrued or earned that quarter.
  The report shall be filed with the Surface Transportation Board on or
             before 30 days after the end of that quarter.]
------------------------------------------------------------------------
                                                           Amount  (in
        Line No.                    Data  (a)            thousands)  (b)
------------------------------------------------------------------------
1.......................  Total fuel cost \1\.........
2.......................  Total gallons of fuel
                           consumed \1\.
3.......................  Total increase or decrease
                           in cost of fuel \2\.
4.......................  Total revenue from fuel
                           surcharges \3\.
5.......................  Revenue from fuel surcharges
                           on regulated traffic.
------------------------------------------------------------------------
\1\ Include fuel for freight, yard and work train locomotives. Include
  fuel charged to train and yard service (function 67--Locomotive
  Fuels). Include all other fuel used for railroad operations and
  maintenance, including motor vehicles and power equipment not charged
  to function 67--Locomotive Fuels.
\2\ Show the total increase or decrease in fuel cost over previous
  quarter.
\3\ Show Fuel surcharges billed for all traffic (line 4) and for only
  regulated traffic (line 5).

    I, the undersigned, ------------, Title: ------------, state that 
this report was prepared by me or under my supervision and that I have 
carefully examined it and on the basis of my knowledge, belief, and 
verification declare it to be full, true and correct.

        Supplemental Information About the Fuel Surcharge Report

    The following information is provided in compliance with OMB 
requirements, pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C. 
3501 et seq.:
    Information in this report is intended to permit the Board to 
monitor the fuel surcharge practices of Class I carriers.
    The estimated annual hourly, per respondent burden for filing this 
report is 12 hours.
    This report is mandatory for Class I carriers.
    Information collected through this report is published on the 
Board's

[[Page 185]]

website and is maintained by the agency for at least 2 years.
    The display of a currently valid OMB control number for this 
collection is required by law. Under 5 CFR 1320.5(b), persons are not 
required to respond to this collection of information unless it displays 
a currently valid OMB control number.

[72 FR 45386, Aug. 14, 2007]



PART 1244_WAYBILL ANALYSIS OF TRANSPORTATION OF PROPERTY_RAILROADS--Table of Contents



Sec.
1244.1 Definitions.
1244.2 Applicability.
1244.3 Reporting contract shipment waybills and Canadian and Mexican 
          international waybills.
1244.4 Sampling of waybills.
1244.5 Date of filing.
1244.6 Retention of files.
1244.7 Special studies.
1244.8 Analysis of waybill data.
1244.9 Procedures for the release of waybill data.

    Authority: 49 U.S.C. 721, 10707, 11144, 11145.

    Source: 46 FR 26784, May 15, 1981, unless otherwise noted.



Sec.  1244.1  Definitions.

    (a) Railroad--an individual railroad or terminal company subject to 
the Interstate Commerce Act and every receiver, trustee, executor, 
administrator or assignee of any such railroad. If a railroad and its 
railroad subsidiaries report to the Board on a consolidated basis, they 
would collectively be considered as a railroad.
    (b) A railroad subsidiary--a railroad owned or controlled by another 
railroad.
    (c) A waybill, which may be referred to by other names such as mine 
tickets, is the document or instrument prepared from the bill of lading 
contract or shipper's instructions as to the disposition of the freight, 
and used by the railroad(s) involved as the authority to move the 
shipment and as the basis for determining the freight charges and 
interline settlements.



Sec.  1244.2  Applicability.

    (a) Effective July 1, 1981 and thereafter, unless otherwise ordered, 
each railroad as defined in Sec.  1244.1 above is required to file 
waybill sample information for all line-haul revenue waybills terminated 
on its lines if it terminates at least 4,500 revenue carloads in any of 
the three preceding years, or if it terminates at least 5% of the 
revenue carloads terminating in any state in any of the three preceding 
years. A railroad required to file waybill sample information under this 
section shall herein be referred to as subject railroad.
    (b) Waybill terminations shall include all line-haul revenue 
movements terminating for waybilling purposes on the subject railroad's 
line whether the lading is destined for the terminating station as 
denoted on the waybill or the shipment is being rebilled or forwarded to 
the ultimate destination by another railroad or another mode of 
transportation (e.g., lake cargo, inbound transit, or other rebilled 
movements).
    (c) Each subject railroad shall also file the required waybill 
sample information for all of its railroad subsidiaries.
    (d) Each subject railroad shall also file the required waybill 
sample information for any other railroad for which it performs revenue 
billing and/or interline settlements under special agreement.
    (e) The surviving corporate entity of railroads (subject to the 
Interstate Commerce Act) who have merged or reorganized shall be 
required to report waybill sample information if its predecessor 
railroad or any of its predecessor railroads were required to report 
under this section.
    (f) In order to determine the number of carloads terminated in each 
state, railroads not otherwise submitting waybill information must 
report annually the number of carloads terminated by state for the last 
calendar year. These reports shall be submitted by March 1 of the year 
following the report year.
    (g) Transition. This final rule will apply to all subject waybills 
which are in the subject railroad's audit month of July 1981 and all 
audit months thereafter. The former rule will continue to apply to all 
subject waybills for the prior audit months up to and including June 
1981.

[[Page 186]]



Sec.  1244.3  Reporting contract shipment waybills and Canadian and Mexican international waybills.

    (a) All railroads shall identify (flag) contract shipment waybills.
    (b) The revenue associated with contract shipments may be encrypted 
(masked) to safeguard the confidentiality of the contract rates.
    (1) Upon written request, the Board will provide a masking procedure 
for a railroad's use or will mask the contract revenues when the Waybill 
Sample is filed with the Board.
    (2) When a railroad intends to use its own proprietary masking 
procedure, those procedures, and any changes in those procedures, must 
be approved by the Board thirty (30) days prior to their use.
    (3) All railroads that use a proprietary masking procedure, and 
intend to continue to use the same procedure, must certify, by letter to 
the Board, prior to January 31 each year, that the contract revenue 
masking procedures are unchanged.
    (4) All correspondence and certifications concerning masking 
procedures should be addressed to: Director, Office of Economics, 
Environmental Analysis, and Administration, Surface Transportation 
Board, Washington, DC 20423-0001, ATTN: WAYBILL COORDINATOR.
    (c) Railroads moving traffic on the U.S. rail system to the Canadian 
or Mexican border shall include a representative sample of such 
international export traffic in the Waybill Sample.
    (d) Railroads shall identify (flag) such movements as international 
traffic in the waybill records.
    (e) Railroads may report information on the complete rail routing or 
report only information related to the U.S. portion of the movement.
    (f) Railroads may mask revenue divisions associated with cross-
border traffic following the masking procedures set forth in paragraphs 
(a) and (b) of this section.

[65 FR 37711, June 16, 2000, as amended at 66 FR 53735, Oct. 24, 2001]



Sec.  1244.4  Sampling of waybills.

    (a) Subject railroads shall file waybill sample information in one 
of the following two ways. (1) Authenticated copies of a sample of 
audited revenue waybills--the manual system (Sec.  1244.3(b)). (2) A 
computer tape containing specified information from a sample of 
waybills--the computerized system (Sec.  1244.3(c)).
    (b) The Manual System. (1) The sample of subject waybills shall be 
as follows:
    (i) All waybills with less than 6 carloads per waybill whose serial 
numbers are 1 or end in 01,
    (ii) All waybills with 6 to 25 carloads per waybill whose serial 
numbers end in 1; and,
    (iii) All waybills with 26 or more carloads per waybill whose serial 
numbers end in 1 or 7.
    (2) The expected sampling rates for the manual system are as 
follows:

------------------------------------------------------------------------
                                                                Expected
                Numbers of carloads on waybill                   sample
                                                                  rate
------------------------------------------------------------------------
1 to 5........................................................    1/100
6 to 25.......................................................     1/10
26 and over...................................................      1/5
------------------------------------------------------------------------

    (3) Upon giving the subject roads 60 days notice, the Board may 
require random serial number endings in lieu of the respective endings 
shown in Sec.  1244.3(b). These random serial number endings would have 
the expected sample rates shown in Sec.  1244.3(b)(2).
    (4) If the subject waybills have no waybill numbers or serial 
numbers, or have seriously flawed waybill or serial numbers, then the 
subject railroad should serialize those documents in blocks of 1,000 or 
blocks of multiples of 1,000 (e.g., 1, 2, . . . 1,000; 1, 2, . . .) and 
use these constructed serial numbers for selection purposes.
    (c) The Computerized System. (1) The tape shall be required to 
conform to the standards and format specified in Statement No. 81-1, 
Procedure for Sampling Waybill Records by Computer (2009 edition), 
issued by the Surface Transportation Board. The Director of the Federal 
Register has approved this incorporation by reference in accordance with 
5 U.S.C. 552(a) and 1 CFR part 51. To enforce any editions other than 
those specified in this section, the STB must publish notice of change 
in the Federal Register and the material

[[Page 187]]

must be available to the public. You may obtain or inspect a copy of 
these standards from the Surface Transportation Board, 395 E Street, 
SW., Washington, DC 20423-0001; from the Surface Transportation Board 
Web site at http://www.stb.dot.gov; or by calling (202) 245-0323. You 
may also inspect a copy at the National Archives and Records 
Administration (NARA). For information on the availability of this 
material at NARA, call (202) 741-6030, or go to: http://
www.archives.gov/federal--register/code--of--federal--regulations/ibr--
locations.html.
    (2) The sampling rates for the computerized system are as follows:

------------------------------------------------------------------------
                                                                  Sample
                  Number of carloads on waybill                    rate
------------------------------------------------------------------------
1 to 2..........................................................    1/40
3 to 15.........................................................    1/12
16 to 60........................................................     1/4
61 to 100.......................................................     1/3
101 and over....................................................     1/2
------------------------------------------------------------------------

    (d) Controls and Annual Counts. (1) Each subject railroad shall 
maintain a control procedure to ensure complete and accurate reporting 
for the waybill sampling. All pertinent waybill data shall be included 
on hard copy waybill submissions including inbound references for 
transit waybills. All such pertinent waybill data shall be legible.
    (2) All subject railroads shall maintain a record of the number of 
line-haul revenue carloads that terminated on their line in a calendar 
year and shall furnish this number when requested by the Board.
    (3) All subject railroads using the manual system of reporting shall 
furnish the Board, in accordance with instructions on the Transmittal 
Form OPAD-2, the total counts of line-haul revenue waybills terminated 
in each reporting period for the following three categories:
    (i) Waybills, with less than six carloads per waybill,
    (ii) Waybills with 6 to 25 carloads per waybill, and
    (iii) Waybills with 26 or more carloads per waybill.
    (4) All subject railroads on the computerized system of reporting 
shall furnish the Board the control counts and tape specification 
information as required by the Statement No. 81-1.
    (5) Certification by a responsible officer of the subject railroad 
as to the completeness and accuracy of sample shall be made once a year 
in accordance with the instructions on the Transmittal Forms OPAD-1 or 
OPAD-2.

[46 FR 26784, May 15, 1981, as amended at 46 FR 45141, Sept. 10, 1981. 
Redesignated at 65 FR 37711, June 16, 2000; 73 FR 66803, Nov. 12, 2008]



Sec.  1244.5  Date of filing.

    (a) The reporting period for which subject railroads submit waybill 
sample information shall be the audit (accounting) month except as 
specified below:
    (1) Subject railroads using the computerized system may submit 
waybill sample information quarterly as specified in Statement 81-1.
    (2) Subject railroad using the manual system may submit waybill 
sample information quarterly if it submits fewer than 1,000 waybills per 
year.
    (b) Waybill sample information shall be forwarded no later than 60 
days from the end of the reporting period to the Board.
    (c) When the submitted waybill sample information is returned to the 
submitting railroad for correction, that railroad shall resubmit 
corrected data to the Board promptly but no later than 60 days after its 
receipt.
    (d) Transmittal Forms. (1) Subject railroads using the manual system 
of reporting shall complete the Transmittal Form OPAD-2, to accompany 
each waybill sample submission.
    (2) Subject railroads using the computerized system of reporting 
shall complete the Transmittal Form OPAD-1, to accompany each waybill 
tape submission.

[46 FR 26784, May 15, 1981. Redesignated at 65 FR 37711, June 16, 2000]



Sec.  1244.6  Retention of files.

    (a) Subject railroads which submit waybill sample data by the 
computerized system instead of the manual system shall retain the 
underlying hard copy waybills or facsimilies capable of producing 
legible copies, which shall be complete including inbound references

[[Page 188]]

for transit waybills, for a minimum period of four years.
    (b) This file of retained waybills shall be maintained in such a 
manner that the railroads on the computerized system may readily 
retrieve waybill copies using the waybill identifier code as shown on 
the submitted computerized waybill record.

[46 FR 26784, May 15, 1981. Redesignated at 65 FR 37711, June 16, 2000]



Sec.  1244.7  Special studies.

    (a) Although routine submission of hard copy waybills is eliminated 
when a railroad reports under the computerized system, the Board may 
order that railroad to submit hard copies of the underlying waybills for 
special studies.
    (b) The Board may order the subject railroads to supply additional 
data for submitted waybill copies or records for special studies.

[46 FR 26784, May 15, 1981. Redesignated at 65 FR 37711, June 16, 2000]



Sec.  1244.8  Analysis of waybill data.

    Users of the waybill sample when presenting waybill analysis before 
the Board shall ensure that the appropriate weighting factors are 
applied to account for the stratified sampling. See Statement 81-1 for 
guidelines for weighting waybill data and for computing sampling errors.

[46 FR 26784, May 15, 1981. Redesignated at 65 FR 37711, June 16, 2000]



Sec.  1244.9  Procedures for the release of waybill data.

    (a) General. The procedures for the release of waybill data identify 
five classes of users of the STB Waybill Sample, define the waybill 
information or data that each class of users may obtain, and set forth 
the applicable requirements for the data's release. They also formalize 
notice and protest procedures for the possible release of waybill data 
to other users to protect against the inappropriate release of 
confidential data. The Director of the Office of Economics, 
Environmental Analysis, and Administration shall be responsible for 
releasing waybill data in accordance with these procedures.
    (b) Class of user, available data, and applicable release 
requirements--(1) Railroads. Each requesting railroad may obtain any 
waybill record from the STB Waybill Sample covering traffic that 
originated, terminated, or was bridged by that railroad. The railroad 
shall not have access to waybill data pertaining to traffic in which it 
did not participate. Also, it must meet all STB and legal requirements 
concerning release of shipper information in accordance with 49 U.S.C. 
11910(a).
    (2) Federal agencies. Each requesting Federal agency (including 
quasi-governmental agencies) may obtain any waybill record from the STB 
Waybill Sample subject to the following requirements:
    (i) The Federal agency shall make the information contained in the 
STB Waybill Sample available only to its employees or those contractors 
working on the particular project or study requiring the waybill data.
    (ii) The Federal agency will ensure that railroads and shippers are 
afforded the same privilege and protection against disclosure of the 
waybill data as the Board provides.
    (iii) The Federal agency will not release any data to the public 
unless the data elements are aggregated to contain at least three 
shippers and to prevent identification of an individual railroad.
    (iv) The Federal agency will refer any requests for waybill data and 
accompanying documentation to the STB for processing and will so inform 
the requesting party of such referral to the Board.
    (v) The Federal agency must sign an agreement annually with the 
Board agreeing to these restrictions.
    (3) States. Each requesting State may obtain any waybill record 
pertaining to traffic that was originated, terminated, interchanged in, 
or that passed through its State subject to the same requirements 
imposed on federal agencies under paragraphs (b)(2)(i) through (v) of 
this section.
    (4) Transportation practitioners, consulting firms, and law firms--
specific proceedings. Transportation practitioners, consulting firms and 
law firms may use data from the STB Waybill Sample in preparing verified 
statements to be submitted in formal proceedings before

[[Page 189]]

the STB and/or State Boards (Board) subject to the following 
requirements:
    (i) The STB Waybill Sample is the only single source of the data or 
obtaining the data from other sources is burdensome or costly, and the 
data is relevant to issues pendng before the Board.
    (ii) The requestor submits to the STB a written waybill request that 
complies with Sec.  1244.8(e).
    (iii) All waybill data must be returned to the STB, and the firm 
must not keep any copies.
    (iv) A transportation practitioner, consulting firm, or law firm 
must submit any evidence drawn from the STB Waybill Sample to the Board 
only unless the evidence is aggregated to the level of at least three 
shippers and will prevent the identification of an individual railroad. 
Nonaggregated evidence submitted to the Board will be made part of the 
public record only if the Board finds that it does not reveal 
competitively sensitive data. However, evidence found to be sensitive 
may be provided to counsel or other independent representatives for 
other parties subject to the usual and customary protective order issued 
by the Board or appropriate authorized official.
    (v) For each Board proceeding, a firm must sign a confidentiality 
agreement with the STB agreeing to the above restrictions before any 
data will be released. This agreement will permit use of the released 
data for a period of one year from the date the agreement is signed by 
the user. If the data is required for an additional period of time 
because a proceeding is still pending before the Board, the firm must 
sign a new confidentiality agreement covering the data needed for each 
additional year the proceeding is opened.
    (5) Public use. Nonconfidential waybill data may be obtained from 
the ``Public Use Waybill File''. Reports produced from the Public Use 
Waybill File may be used, published, or released. The Public Use Waybill 
File contains the following nonconfidential items:
    (i) Waybill Date (Month, Day, Year).
    (ii) Accounting Period (Month, Year).
    (iii) Number of Carloads.
    (iv) Car Ownership (Rail or Private).
    (v) AAR Car Type.
    (vi) AAR Mechanical Designation.
    (vii) STB Car Type.
    (viii) TOFC/COFC Plan.
    (ix) Number of TOFC/COFC Units.
    (x) TOFC/COFC Unit Ownership.
    (xi) TOFC/COFC Unit Type (Trailer or Container).
    (xii) Hazardous/Bulk Material in Box Car Flag.
    (xiii) Commodity Code--Excluding STCC 49/50 (All 5 digit STCC Codes, 
except STCC 19).
    (xiv) Billed Weight in Tons.
    (xv) Actual Weight in Tons.
    (xvi) Linehaul Freight Revenue.
    (xvii) Transit Revenue.
    (xviii) Miscellaneous Revenue.
    (xix) Interstate/Intrastate Code.
    (xx) Type of Move (Import/Export/Minibridge).
    (xxi) All Rail/Intermodal Code.
    (xxii) Type Move Via Water.
    (xxiii) Outbound Transit Code.
    (xxiv) Substituted Truck for Rail Service.
    (xxv) Rebill Code.
    (xxvi) Estimate of Miles.
    (xxvii) Stratum Identification.
    (xxviii) Replicate Number.
    (xxix) Population Count/Strata Count (expansion factor).
    (xxx) Theoretical Expansion Factor.
    (xxxi) Number of Interchanges.
    (xxxii) Origin BEA (omitted if STCC and BEA pair reveals 
competitively sensitive shipper data).
    (xxxiii) Origin STB Rate Territory.
    (xxxiv) States of Interchanges (first through ninth).
    (xxxv) Termination BEA (omitted if STCC and BEA pair reveals 
competitively sensitive shipper data).
    (xxxvi) Termination STB Rate Territory.
    (xxxvii) Waybill Reporting Period Length.
    (xxxviii) AAR Provided UMBLER Data.
    (xl) Bad Routing Code.
    (xli) Miscellaneous Factored Expanded Data (e.g., carloads).
    (c) Other Users. (1) Users other than those described in paragraphs 
(b)(1) through (b)(5) of this section may file written requests in 
accordance with paragraph (e) of this section for permission to use data 
from the STB Waybill Sample.

[[Page 190]]

    (2) All written requests filed by such users are subject to the 
notice and protest procedures described in paragraph (d) of this 
section.
    (d) Notice and protest procedures for waybill requests by other 
users. Railroads and shippers will be notified and afforded the 
opportunity to protest waybill requests filed by users other than those 
described in paragraphs (b)(1) through (b)(5) of this section in 
accordance with the following procedures:
    (1) Notice of request for confidential waybill data. Affected 
railroads and shippers will receive notice by Federal Register 
Publication. If railroad specific or shipper specific data are 
requested, those parties will be given written notice of the request.
    (2) Form of notice. The notice shall identify the parties requesting 
the data; describe the type of waybill data requested; and state the 
purpose for which the data is requested. The notice shall include a 
statement that parties seeking information concerning the filing of 
objections should refer to Ex Parte No. 385 (Sub-No. 2), 49 CFR 1224.8, 
or contact the Surface Transportation Board's Office of Economics, 
Environmental Analysis, and Administration.
    (3) Objections to release. (i) Objections to release of the 
confidential waybill data must be filed by the railroad and/or shipper 
no later than 14 calendar days from publication of the notice in the 
Federal Register.
    (ii) An original and 3 copies of each objection shall be filed with 
the Director, Office of Economics, Environmental Analysis, and 
Administration, Surface Transportation Board, Washington, DC 20423.
    (iii) The objection shall identify the parties seeking the 
confidential waybill data, reiterate the purpose for which the data is 
sought, and state all grounds for objection to full or partial 
disclosure of the requested data.
    (4) Board determination. (i) The Director of the Office of 
Economics, Environmental Analysis, and Administration will consider all 
objections in determining whether to release the requested waybill data. 
Each railroad or shipper who filed objections will be sent written 
notice of the Director's decision not less than 14 calendar days prior 
to the disclosure date.
    (ii) The Board reserves the right to deny the release of waybill 
data although no objections may be filed.
    (iii) Appeals must be filed with the Chairman within 10 days of the 
date of the Director's decision. Responses to appeals must be filed 
within 10 days thereafter (49 CFR 1011.7(b)(1)). The filing of an appeal 
will automatically stay the effect of the Director's decision.
    (e) Content of waybill requests. (1) All requestors under paragraphs 
(b)(4) and (c) of this section shall include the following information:
    (i) A complete and detailed explanation of the purpose for which the 
requested data are needed.
    (ii) A description of the specific waybill data or fields actually 
required (including pertinent geographic areas).
    (iii) A detailed justification as to why the specified waybill data 
are needed.
    (2) An original and 2 copies of the waybill request shall be filed 
with the Director, Office of Economics, Environmental Analysis, and 
Administration, Surface Transportation Board, Washington, DC 20423.
    (f) Aggregation of confidential shipper data.
    (1) Any shipper data obtained from the Waybill Sample shall not be 
publicly released unless the data are aggregated to include at least 
three shippers.
    (2) To aggregate the waybill data to the level of three shippers, 
the three-FSAC Rule shall be used. Under this rule, there must be at 
least three different freight stations as identified by the Freight 
Station Accounting Code (FSAC) on one railroad or there must be at least 
two more FSAC's than there are railroads present in the waybill data 
being aggregated.
    (3) The three-FSAC Rule shall apply to every number and calculation 
publicly released.
    (4) The Director of OTA will consider requests to apply an 
alternative aggregation method provided the requestor establishes that a 
particular project necessitates an alternative approach and that 
approach effectively protects the identity of individual shippers.

[[Page 191]]

    (g) Complaint procedures. (1) Complaints for alleged breaches of 
confidentiality or misuse of confidential waybill data must include the 
following:
    (i) Identification of all known parties involved in the alleged 
violation.
    (ii) The approximate date(s) of the alleged violations.
    (iii) A full and detailed description of the alleged violation.
    (iv) A description of any resulting harm to the complainant.
    (2) Prior to filing a complaint, a complainant, upon written 
request, may obtain a copy of the incoming waybill request and the 
applicable confidentiality agreement. This request must identify the 
party involved, give the approximate date the data was released, briefly 
describe the alleged violation, and substantiate the need for this 
information for purposes of filing a complaint.
    (3) An original and three (3) copies of the complaint shall be filed 
with the Director, Office of Economics, Environmental Analysis, and 
Administration, Surface Transportation Board, Washington, DC 20423. A 
copy of the complaint shall also be served on the alleged violator(s).
    (4) An answer must be filed within 20 days after service of the 
complaint.
    (5) All parties will be notified in writing of the Director's 
decision. If the Director determines that a violation has occurred, the 
offending parties will be denied access to the waybill sample for a 
period of time commensurate with the nature of the violation.
    (6) Appeals to the Director's determination shall be filed in 
accordance with paragraph (d)(4)(iii) of this section.
    (h) Munitions shipments. All waybill requests for munition data at 
the 3-digit Standard Transportation Commodity Code (STCC) level or 
greater will be forwarded by the STB to the Department of Defense's 
Military Traffic Management Command (MTMC). The STB will not release 
this type of information without MTMC's consent.

[52 FR 12416, Apr. 16, 1987. Redesignated at 65 FR 37711, June 16, 2000, 
as amended at 67 FR 57534, Sept. 11, 2002]



PART 1245_CLASSIFICATION OF RAILROAD EMPLOYEES; REPORTS OF SERVICE AND COMPENSATION--Table of Contents



Sec.
1245.1 Rules governing classification of employees, service, and 
          compensation.
1245.2 Reports of railroad employees, service and compensation.
1245.3 Employees; definition, service hours, and compensation.
1245.4 Forms required to be used.
1245.5 Classification of job titles.
1245.6 Cross reference to standard occupational classification manual.

    Authority: 49 U.S.C. 721, 11145.

    Source: 32 FR 20462, Dec. 20, 1967, unless otherwise noted.
    Note: The report forms prescribed by part 1245 are available upon 
request from the Office of Economics, Environmental Analysis, and 
Administration, Surface Transportation Board, Washington, DC 20423-0001.



Sec.  1245.1  Rules governing classification of employees, service, and compensation.

    The rules governing the classification of railroad employees and 
reports of their service and compensation outlined in Sec. Sec.  1245.3 
and 1245.4 are required, and all Class I railroads within the scope of 
Section 11145 of the Interstate Commerce Act shall be governed by such 
rules in the preparation and submission of their annual and other 
periodic reports to the Surface Transportation Board in accordance with 
the forms adopted for such returns (Sec.  1245.2); and also with respect 
to any other matters covered by these rules.

[47 FR 53867, Nov. 30, 1982]



Sec.  1245.2  Reports of railroad employees, service and compensation.

    Beginning with the reporting period commencing January 1, 1983, and 
quarterly thereafter until further ordered, each Class I railroad is 
required to file a Quarterly Report of Railroad Employees, Service, and 
Compensation, (Form QRSC). In addition, such carriers shall also file an 
Annual Report of Railroad Employees, Service, and Compensation, (Form 
ARSC) for each calendar year. Both reports shall be filed with the 
Bureau of Accounts, Surface Transportation Board, Washington, DC 20423. 
The quarterly report shall be

[[Page 192]]

filed within thirty days after the end of each calendar quarter. The 
annual report shall be filed within forty five days after the end of the 
reporting year.

[47 FR 53867, Nov. 30, 1982]



Sec.  1245.3  Employees; definition, service hours, and compensation.

    (a) Definition of ``employees''. The word employees, as used in this 
part, is intended to include every person in the service of the 
reporting carrier subject to its continuing authority to supervise and 
direct the manner of rendition of his service. Persons engaged to render 
only specifically defined service and not subject to the continuing 
authority of the carrier to supervise and control their acts, such as 
customhouse brokers, lawyers retained only for specific cases and not 
under general or continuing retainer, etc., are not employees in the 
meaning of the term used in this part.
    (b) Counting employees. Since the number of employees fluctuates, 
carriers are required to classify and count all of their employees at 
twelve different times each year.
    (c) Joint employees. Each person jointly employed shall, if carried 
on the payrolls of the several joint employers, be counted by each 
employer and represented in its return of number of employees by a 
fraction based on the number of employers reporting him; if a person, 
for example, is reportable by three employers, each should include him 
in its number of employees as one-third of an employee. When the entire 
compensation of a joint employee is shown on the payroll of a single 
joint employer and is paid to the employee by that employer such 
employee should, for the purpose of returns, be treated as if employed 
solely by such employer.
    (d) Service hours. (1) The number of hours on duty, or held for 
duty, and the number of hours paid for are to be ascertained and 
recorded for every class of employee. For enginemen and trainmen, the 
actual number of miles run and miles paid for but not run are to be 
recorded, as well as the number of hours on duty and the number of hours 
paid for. (The service time of all classes of employees shall be 
recorded in hours instead of days or hours as heretofore.)
    (2) Whenever an employee works at more than one occupation, or in 
more than one class of service, both the number of hours worked and the 
compensation paid, should be separated and reported under the proper 
Reporting Divisions.
    (3) If an employee is paid a day's wage for a smaller number of 
hours than constitutes a day's work, the number of hours paid for as 
well as the actual number of hours the employee is on duty should be 
ascertained and recorded. Time allowed for meals, part holidays, 
holidays, absences on leave, vacations, etc., should be excluded from 
time actually worked, but if such time is paid for it should be 
appropriately reported as ``Time paid for but not worked'' on Form A or 
as a ``constructive allowance'' on Form B. These requirements apply to 
enginemen and trainmen paid on the basis of trips or of miles run, and 
to employees paid at piece rates, as well as to employees paid on 
hourly, daily, weekly, monthly, or other time basis. Service hours for 
officers and employees who do not receive payment for overtime should be 
reported as the number of hours in each month at 8 hours per day 
contemplated for the position.
    (e) Compensation. The compensation of employees as defined in the 
rules in this part is to be stated in such manner and detail as the 
forms adopted for periodical returns require.



Sec.  1245.4  Forms required to be used.

    (a) The report of information to the Surface Transportation Board on 
railroad employees, service and compensation includes two forms. Form A 
relates to employees other than train and engine service employees. Form 
B relates to train and engine service employees.
    (b) With general reference to the statement of the compensation of 
employees in Forms A and B, it should be understood that the total 
compensation received by the employees in each Reporting Division, as 
well as the amount of work they perform, should be shown properly 
distributed under the prescribed column heads as indicated by the forms. 
It should be noted

[[Page 193]]

that if the work of an employee varies during a report period, his time 
and compensation should be apportioned accordingly. Amounts reported 
should be gross compensation paid.

    Illustrations. (a) In the course of a month, an employee works as a 
Machinist, and as such earns $200 and he works also as a Gang Foreman 
and earns $130. The pay received by him in the occupation of Machinist 
with corresponding time should be included in returns for Division 61, 
``Machinists'', and his other pay and time as indicated should be 
included in returns for Division 53, ``Gang Foremen and Gang Leaders''. 
(b) When an employee works at two or more of the occupations of 
engineer, fireman, conductor, and brakeman, his time and compensation 
should be assigned in accordance with the facts. For example, in a 
certain month an employee earns as a Through Freight Engineer $110, as a 
Local or Way Freight Engineer $140, as a Yard Engineer $100, and as a 
Local or Way Freight Fireman $75. The time and the compensation of this 
employee should be correspondingly distributed among Reporting Divisions 
122, 123, 124, and 127 as they are respectively applicable, without 
regard to the predominance of the time worked or the amount earned by 
him in one occupation.

    (c) As elsewhere indicated, the statement of the number of employees 
in the service of a company with respect to Reporting Divisions depends 
upon the allocation of the individual employees as of the day of count.
    (d) The Reporting Divisions shown in Forms A and B following will 
also be used in connection with the employees' schedule in the annual 
reports of railroads of classes I and II to the Board. Railroads of 
class III and lessor companies shall report only the information 
required in the annual report forms prescribed for such companies.

[32 FR 20462, Dec. 20, 1967, as amended at 47 FR 53867, Nov. 30, 1982]

[[Page 194]]



Sec.  1245.5  Classification of job titles.

----------------------------------------------------------------------------------------------------------------
                                                                                            Relation to present
 Number     Classification          Description                 Typical titles                classification
----------------------------------------------------------------------------------------------------------------
    100       Executives,
             Officials, and
            Staff Assistants
    101  Executives and        Chief executives,     President, Vice President,           More precisely defined
          General Officers.     corporate             Assistant Vice President,            than present No. 1,
                                department heads      Controller, Treasurer, Director      limited to executive
                                and major             (head of subdepartment), General     management positions;
                                subdepartment heads.  Superintendent (subdepartment        adds new titles.
                                                      head), Chief Engineer, General
                                                      Manager (department or
                                                      subdepartment head).
    102  Corporate Staff       Corporate executives  Director (other than subdepartment   New classification,
          Managers.             and managers          head), Assistant Director,           providng a specific
                                assisting             Assistant General Manager (not       assignment for staff
                                department and        regional), Manager, Assistant        managers; adds new
                                subdepartment heads.  Manager, Assistant Chief Engineer,   title.
                                                      Purchasing Agent, Superintendent
                                                      (not division), Assistant to
                                                      (corporate executive or general
                                                      officer), Executive Assistant (to
                                                      corporate executive) Budget
                                                      Officer.
    103  Regional and          Regional managers     Assistant General Manager,           Similar to present No.
          Division Officers,    and assistants        Assistant Regional Manager,          2 but limited to
          Assistants and        below the executive   General Superintendent, Assistant    regional and
          Staff Assistants.     management level,     to General Manager, Division         divisional
                                and chief division    Superintendent, Master Mechanic,     management; adds new
                                officers.             Division Sales Manager, District     title.
                                                      Sales Manager, Assistant Master
                                                      Mechanic, District Engineer,
                                                      Assistant Superintendent, Captain
                                                      of Police, Division Engineer,
                                                      Manager of Materials, Safety
                                                      Inspector, Real Estate Agent, Real
                                                      Estate Supervisor, Tax Agent,
                                                      Buyer, Assistant Buyer, Sales
                                                      Agent, Assistant Sales Agent.
    104  Transportation        Managers directly     Train Master, Assistant Train        New classification
          Officers/Managers.    supervising train     Master, General Yardmaster,          providing specific
                                and yard operations.  General Road Foreman, Road           assignment for
                                                      Foreman, Assistant Road Foreman,     Operations Managers.
                                                      Chief Power Supervisor (motive).
    200    Professional and
             Administrative
    201  Professionals (other  Technical             General Counsel, Assistant General   Corresponds to present
          than those reported   occupations           Counsel, General Attorney,           STB No. 3, but
          in 101 and 102).      requiring a high      Assistant General Attorney,          limited to
                                degree of training    Attorney, Commerce Counsel, Chief    professionals; adds
                                and/or supervising    Medical Officer, Medical Officer,    new titles.
                                subprofessionals      Surgeon, Company Surgeon,
                                and technicians.      Engineer, Architect, Chief
                                                      Chemist, Nurse, Tax Accountant,
                                                      Internal Auditor to General
                                                      Accountant, Corporate Accountant,
                                                      Supervisor Programing, Senior
                                                      Computer System Specialist, Senior
                                                      System Analyst.
    202  Subprofessionals....  Technical             Draftsman, Chemist, Assistant        Corresponds to present
                                occupations           Chemist, X-ray Technician,           STB No. 3 but limited
                                requiring a high      Supervisor Estimating, Junior        to subprofessionals;
                                degree of knowledge   Engineer, Engineering Trainee,       adds new titles.
                                and/or skill.         Photographer, Computer Programmer,
                                                      Computer Analyst, Market Analyst,
                                                      Pricing Analyst, Employment
                                                      Supervisor, Research Analyst.
    203  Auditors, Traveling   Title is descriptive  Traveling Auditor, Accounting        Corresponds to present
          Auditors or                                 Specialist Auditors, Operations      STB No. 13.
          Accountants.                                Traveling Auditors, Station
                                                      Auditors.
    204  General and           Supervisors           General Supervisor, Supervisor,      Consolidation of
          Administrative        responsible for       Chief Clerk, Office Supervisor,      present STB Nos. 4
          Supervisors.          administrative        Supervisor Administration, Office    and 5; adds new
                                activity of a         Manager, Supervising Clerk, Head     titles.
                                department,           Clerk, Assistant Chief Clerk,
                                subdepartment,        Supervising Cashier, Division
                                office or region.     Supervisor, Regional Supervisor,
                                                      Budget Supervisor, Administrative
                                                      Supervisor, Administrative
                                                      Assistant.

[[Page 195]]

 
    205  Sales and Traffic     Non-supervisory       Freight Traffic Agent, Coal Traffic  New classification,
          Representatives and   occupations with      Agent, Sales Representative,         containing a portion
          Agents.               predominant           Freight Sales Representative,        of present STB No.
                                responsibilities      Freight Traffic Representative,      19; adds new titles.
                                for sales and         Passenger Sales Representative.
                                customer relations.
    206  Freight and Other     Occupations which     Claim Agent, Claim Investigator,     Consolidates present
          Claim Agents and      have predominant      Freight Claim Agent, Freight Claim   STB Nos. 20 and 21;
          Investigators.        duties                Investigator.                        adds new titles.
                                investigating and
                                handling freight
                                and personal injury
                                claims.
    207  Supervising and       Title is descriptive  Chief Claim Agent, Chief Freight     Corresponds with
          Chief Claim Agents.                         Claim Agent, Assistant Chief Claim   present STB No. 22.
                                                      Agent, Chief District Claim Agent,
                                                      District Freight Claim Agent,
                                                      Chief Claim Investigator.
    208  Lieutenants and       Title is descriptive  Police Lieutenant, Police Sergeant.  Corresponds to present
          Sergeants of Police.                                                             STB No. 17.
    209  Police Officers,      Title is descriptive  Police Officer, Patrolman,           Corresponds with
          Watchmen and Guards                         Watchman, Guard.                     present STB No. 18.
          (Except Crossing
          and Bridge).
    210  Inspectors (Except    Miscellaneous         Rules Examiner, Supervisor Rules,    Classification for a
          Maintenance of Way    occupations which     Safety Supervisor, Fire Marshall,    portion of similar
          and Equipment),       have predominant      Fire Chief, Instructor, Supervisor   occupations included
          Other                 duties of             Procedures, Supervisor Yard          in present STB No.
          Investigators,        investigating,        Procedures.                          19; adds new titles.
          Examiners,            inspecting,
          Instructors, and      reviewing, and
          Other Agents          instructing and
          (Except Station       which require a
          Agents).              high degree of
                                technical knowledge.
    212  Clerical Technicians  Clerical occupations  Lead Clerk, Staff Assistant          Corresponds to present
          and Clerical          with duties to        (clerical), Statistician, Cashier,   STB No. 6; adds new
          Specialists.          perform               Teller, Assistant Statistician,      titles.
                                independently         Rate Clerk, Pricing Clerk,
                                responsible work      Computer Technician.
                                requiring special
                                financial cost,
                                accounting, or
                                other technical
                                knowledge.
    213  Office Machine and    Occupations with      Machine Operator, Clerk, Computer    Corresponds to present
          Data Equipment        predominant duties    Operator, Keypunch Operator Office   STB No. 8; adds new
          Operators.            of operating office   Machine Technician.                  titles.
                                machines and
                                computer equipment.
    214  Secretaries,          Secretaries,          Secretary, Stenographer, Typists,    Consolidates present
          Stenographers, and    Stenographers, and    Clerk Typist, Steno-clerk.           STB Nos. 9 and 10.
          Typists.              Typists.
    215  General and Other     Clerical occupations  File Clerk, General Clerk,           Corresponds to present
          Clerks (excluding     not otherwise         Bookkeeper, Ticket Clerk, Records    STB NO. 7; adds new
          yard clerk and crew   classified.           Clerk, Trace Clerk, Assignment       titles.
          dispatcher).                                Clerk, Personnel Clerk, M of W
                                                      Clerks, M of E Clerks.
    216  Telephone and         Title is descriptive  Switchboard Operator, Chief          Present STB No. 14.
          Switchboard                                 Operator.
          Operators.
    217  Building and Office   Miscellaneous         Elevator Operator, Elevator          Consolidates present
          Attendants.           occupations           Starter, Janitor, Cleaner, Porter.   STB Nos. 16 and 26.
                                associated with
                                office building
                                functions.
    218  Messengers and        Title is descriptive  Messenger, Office Person...........  Present STB No. 15.
          Office Persons.
    219  Motor Vehicle         Occupations           Truck Driver, Bus Driver, Driver,    Consolidates present
          Operators.            associated with       Chauffeur.                           STB Nos. 24 and 25.
                                automobile and
                                truck driving.
    300   Maintenance of Way
             and Structures

[[Page 196]]

 
    301  Supervisors,          Occupations with      Roadmaster, Division Roadmaster,     Corresponds with
          Maintenance of Way,   supervisor            Supervisor Track, Supervisor         present STB Nos. 27
          Structures,           responsibility for    Bridges and Buildings, Supervisor    and 44.
          Communication and     maintenance of way    Communications and Signals,
          Signals.              and structures        Assistant Supervisor, General
                                (other than           Foreman (MW&S), Assistant General
                                regional and          Foreman (MW&S), Master Carpenter,
                                divisional            Chief Draftsman.
                                officers).
    302  Maintenance of Way,   Title is descriptive  Chief Bridge and Building            Corresponds with
          Structures,                                 Inspector, Chief Scale Inspector,    present STB No. 28
          Communication and                           Bridge and Building Inspector,       plus part of old No.
          Signals, and Scale                          Scale Inspector, Roadway Equipment   44.
          Inspectors.                                 Inspector, Track and Roadway
                                                      Inspector, Instrument Man, Rodman,
                                                      Chainman, Inspector Communications
                                                      and Signals, Signal Inspector.
    303  Bridge and Building   Title is descriptive  Gang Foreman, Lead Workman.........  Consolidates present
          Gang Foreman.                                                                    STB No. 29 with
                                                                                           bridge and building
                                                                                           portion of present
                                                                                           STB No. 39.
    304  Bridge and Building   Title is descriptive  Carpenter..........................  Corresponds with
          Carpenters.                                                                      present STB No. 30.
    305  Bridge and Building   Title is descriptive  Ironworker.........................  Corresponds with
          Ironworkers.                                                                     present STB No. 31.
    306  Bridge and Building   Title is descriptive  Painter, Sign Painter..............  Corresponds with
          Painters.                                                                        present STB No. 32.
    307  Masons, Bricklayers,  Title is descriptive  Mason, Bricklayer, Plasterer,        Corresponds with
          Plasterers, and                             Plumber, Operator, Grinder, Welder   present STB Nos. 23
          Plumbers.                                   (M of W).                            and 33.
    308  Bridge and Building   Title is descriptive  Carpenter Helper, Ironworker         Corresponds with
          Helpers and                                 Helper, Mason Helper, Plumber        present STB No. 34;
          Apprentices.                                Helper, Painter Helper, Apprentice   adds new titles.
                                                      Carpenter, Apprentice Ironworker,
                                                      Apprentice Mason, Plumber
                                                      Apprentice, Apprentice Painter,
                                                      Welder Helper.
    309  Bridge and Building   Title is descriptive  Bridge and Building Laborer........  Corresponds with
          Gang and Bridge and                                                              present STB No. 43.
          Building Department
          Laborers.
    310  Track Gang Foremen    Title is descriptive  Gang Foreman, Assistant Foreman....  Corresponds with
          (Extra Gang work                                                                 present STB No. 38.
          train laborers).
    311  Gang or Section       Title is descriptive  Gang Foreman, Assistant Foreman,     Corresponds with
          Foreman.                                    Section Foreman.                     present STB No. 40.
    312  Extra Gang Laborers.  Title is descriptive  Trackman, Fence Laborer............  Corresponds with
                                                                                           present STB No. 41.
    313  Section Laborers....  Title is descriptive  Trackman, Track and Roadway Section  Corresponds with
                                                      Laborer.                             present STB No. 42.
    314  Machine Operators...  Title is descriptive  Craneman, Portable Equipment         Consolidates present
                                                      Engineer, Portable Equipment         STB No. 35, 36, and
                                                      Operator, Machine Operator, Helper.  37.
    315  Gang Foremen,         Title is descriptive  Gang Foreman, Assistant Gang         Consolidates present
          Communications and                          Foreman, Lead Signal Maintainer.     STB No. 45 with
          Signals.                                                                         communications and
                                                                                           signals occupations
                                                                                           included in present
                                                                                           STB No. 39.
    316  Signalmen and Signal  Title is descriptive  Signalman, Signal Maintainer.......  Corresponds with
          Maintainers.                                                                     present STB No. 46.
    317  Linemen and           Communications        Electrical Worker (Lineman),         Corresponds with
          Groundmen and         equipment             Electrical Worker (Groundman)        present STB No. 47.
          Communications        installers,           Communications maintainer.
          Craftsman.            Maintainers, and
                                repairmen.
    318  Assistant Signalmen   Title is descriptive  Assistant Signalman, Assistant       Corresponds with
          and Assistant                               Signal Maintainer.                   present STB No. 48.
          Signal Maintainers.
    319  Signal Helpers and    Title is descriptive  Signalman Helper, Signal Maintainer  Corresponds with
          Signal Maintainer                           Helper.                              present STB No. 49.
          Helpers.
    320  Camp Car Cooks......  Occupations engage    Camp Car Cook, Camp Car Helper.....  Corresponds with part
                                in food service in                                         of present STB No.
                                camp cars.                                                 97.

[[Page 197]]

 
    400     Maintenance of
             Equipment and
                 Stores
    401  Supervisors and       Occupations with      General Foreman Shop, General        Corresponds with
          General Foremen,      supervisory           Foreman Enginehouse, General         present STB No. 50;
          Maintenance of        responsibility for    Foreman Diesel Terminal, Assistant   adds new titles.
          Equipment.            maintenance of        General Foreman (M of E).
                                equipment (other
                                than regional and
                                division officers).
    402  Supervisors and       Occupations with      Supervisor Materials, Assistant      Corresponds with
          General Foremen,      supervisory           Supervisor Materials, General        present STB No. 51;
          Materials and         responsibility for    Foreman Stores, General Foreman      adds new titles.
          Stores.               stores and            Reclamation Plant, Assistant
                                materials.            General Foreman.
    403  Equipment, Shop,      Title is descriptive  Chief Electrical Inspector, Chief    Corresponds with part
          Electrical                                  Shop and Equipment Inspector,        of present STB No.
          Inspectors.                                 Electrical Inspector, Equipment      52.
                                                      Inspector, Inspector Diesel
                                                      Locomotive, Fuel Inspector.
    404  Materials and         Title is descriptive  Materials and Supplies Inspector,    Corresponds with part
          Supplies Inspectors.                        Chief Materials and Supplies         of present STB No.
                                                      Inspector, Timber Inspector, Tie     52.
                                                      Inspector.
    405  Storekeeper.........  Title is descriptive  Storekeeper, Assistant Storekeeper,  Corresponds to
                                                      Materials Clerk, Store Clerk.        materials and stores
                                                                                           occupation in present
                                                                                           STB No. 11.
    406  Gang Foremen,         Title is descriptive  Gang Foreman.......................  Consolidates present
          Maintenance of                                                                   STB Nos. 53 and 68.
          Equipment.
    407  Blacksmiths.........  Title is descriptive  Blacksmith.........................  Corresponds with
                                                                                           present STB No. 54.
    408  Boilermakers........  Title is descriptive  Boilermaker........................  Corresponds with
                                                                                           present STB No. 55.
    409  Carmen (Freight)....  Repair and inspect    Car Repairmen, Car Inspector,        Corresponds with
                                freight cars.         Carman, Painter.                     present STB No. 57.
    410  Carmen (Other)......  Title is descriptive  Carmen.............................  Corresponds with
                                                                                           present STB No. 56.
    411  Electrical Workers    Electricians........  Electrician, Electrical Worker.....  Corresponds with
          (A).                                                                             present STB No. 58.
    412  Electrical Workers    Electrical workers--  Crane Operator, Load Dispatcher,     Corresponds with
          (B).                  occupations           Power Station Operator, Assistant    present STB No. 59.
                                specialized in        Power Director.
                                operating heavy
                                equipment.
    413  Electrical Workers    Electrical Workers--  Coal and Ore Elevator Operator       Corresponds with
          (C).                  occupation            (electrical), Grain Elevator         present STB No. 60.
                                specialized in        Operator (electrical).
                                heavy equipment
                                operating at coal,
                                grain, and ore
                                docks.
    414  Machinists..........  Title is descriptive  Machinist..........................  Corresponds with
                                                                                           present STB No. 61.
    415  Sheet Metal Workers.  Title is descriptive  Sheet Metal Worker.................  Corresponds with
                                                                                           present STB No. 63.
    416  Skilled Trades,       Title is descriptive  Helper.............................  Corresponds with
          Helpers,                                                                         present STB No. 64.
          Maintenance of
          Equipment and
          Stores.
    417  Apprentices,          Title is descriptive  Apprentice, Helper Apprentice......  Consolidates present
          Maintenance of                                                                   STB Nos. 65 and 66.
          Equipment and
          Stores.
    418  Coach Cleaners......  Title is descriptive  Coach Cleaner......................  Corresponds with
                                                                                           present STB No. 67.
    419  Laborers: Shops,      Title is descriptive  Laborer............................  Consolidates present
          Enginehouses, and                                                                STB Nos. 70 and 71.
          Power Plants.
    420  Gang Foremen,         Title is descriptive  Gang Foremen.......................  Corresponds with
          Materials and                                                                    present STB No. 69.
          Stores.
    421  Equipment Operators   Title is descriptive  Laborer, Materials Handler,          Corresponds with
          and General                                 Equipment Operators, Machine         present STB No. 72,
          Laborers, Materials                         Operators.                           plus part of STB No.
          and Stores.                                                                      24.
    422  Stationary Engineers  Title is descriptive  Chief Engineer (Steam Plant)         Corresponds with
                                                      Engineer, Stationary Engineer.       present STB No. 73.
    423  Stationary Firemen..  Title is descriptive  Stationary Fireman, Power Equipment  Corresponds with
                                                      Operator Helper, Oiler.              present STB No. 74.
    500     Transportation,
            Other Than Train
               and Engine

[[Page 198]]

 
    501  Transportation        Occupational          Chief Train Dispatcher, Supervisor   Corresponds with
          Supervisor and        directly              Train Operations, Transportation     present STB No. 75;
          Chief Train           supervising train     Supervisor, Supervisor Train         adds new titles.
          Dispatcher.           operation.            Operations, Supervisor Locomotive
                                                      and Car Distribution, Assistant
                                                      Chief Train Dispatcher.
    502  Train Dispatchers...  Title is descriptive  Train Dispatcher...................  Corresponds with
                                                                                           present STB No. 76.
    503  Station, Freight and  Occupations with      Supervising Station Agent,           Consolidates present
          Passenger Agents.     responsibility for    Assistant Supervising Station        STB Nos. 12, 78, 79,
                                station operations.   Agent, Station Agent, Freight        and 80.
                                                      Agent, Passenger Agent, Ticket
                                                      Agent, Traveling Agent, Agent
                                                      Operators.
    504  Chief Operators and   Title is descriptive  Supervising Operator, Chief          Corresponds with
          Wire Chiefs.                                Operator, Assistant Supervising      present STB No. 81.
                                                      Operator, Wire Chief.
    505  Clerk Operators,      Title is descriptive  Clerk Operator, Block Operator,      Consolidates present
          Towerman, Train                             Operator, Towerman, Train            STB Nos. 77, 82 and
          Directors.                                  Directors.                           83.
    506  Station Masters and   Title is descriptive  Stationmaster, Assistant             Consolidates present
          Assistants,                                 Stationmaster, Supervising Baggage   STB Nos. 84, 85, and
          Supervising Baggage                         Agent, Baggage Agent, Assistant      86.
          Agents, Baggage                             Baggage Agent, Parcel Room Agent.
          Agents and
          Assistants.
    507  Baggage, Parcel Room  Title is descriptive  Baggage Attendant, Parcel Room       Corresponds with
          and Station                                 Attendant, Station Attendant,        present STB No. 87.
          Attendants.                                 Gateman, Announcer, Station Usher,
                                                      Red Cap, Information Bureau
                                                      Attendant.
    508  General and           Title is descriptive  General Foreman, Assistant General   Consolidates present
          Assistant General                           Foreman.                             STB Nos. 88 and 89.
          Foremen, Stations,
          Warehouses, Grain
          Elevators, and
          Docks.
    509  Gang Foremen,         Title is descriptive  Gang Foreman.......................  Corresponds with
          Stations,                                                                        present STB No. 90.
          Warehouses, Grain
          Elevators and Docks.
    510  Grain Elevator, and   Title is descriptive  Laborer............................  Consolidates present
          Dock Laborers.                                                                   STB Nos. 93 and 94.
    511  Station, and          Title is descriptive  Loader, Sealer.....................  Corresponds with
          Warehouse Laborers.                                                              present STB No. 91.
    512  Truckers (Station,    Title is descriptive  Trucker............................  Corresponds with
          Warehouse and                                                                    present STB No. 92.
          Platforms).
    513  Food and Lodging      Occupations with      Manager Lodging House, Restaurant    Corresponds with
          Manager,              responsibility for    Manager, Dining Car Supervisor,      present STB No. 95.
          Supervisors.          supervision of food   Dining Car Steward.
                                service or lodging.
    514  Transportation and    Title is descriptive  Instructor Chef, Restaurant          Corresponds with
          Dining-Service                              Inspector, Freight Service           present STB No. 99.
          Inspectors.                                 Inspector, Baggage Inspector.
    515  Waiters and Kitchen   Title is descriptive  Waiter-in-charge, Waiter...........  Corresponds with
          Helpers (Restaurant                                                              present STB No. 97.
          and Dining Car).
    516  Chefs and Cooks       Title is descriptive  Chef, Cook.........................  Corresponds with
          (Restaurant and                                                                  present STB No. 96.
          Dining Car).
    517  Marine Officers and   All occupations with  Captain, Engineer, Mate, Deckhand,   Corresponds with
          Workers and Shore     predominant duties    Oiler, Purser, Boat Master,          present STB No. 98.
          Workers.              which are the         Fireman, Wharf Master, Able
                                operation of marine   Seaman, Baggageman, Boat
                                service.              Dispatcher.
    518  Train Attendants....  Passenger train       Porter, Buffet Lounge Attendant,     Consolidates present
                                occupations other     Stewardess.                          STB Nos. 100 and 101.
                                than train service
                                and dining car
                                operation.
    519  Bridge Operators and  Title is descriptive  Bridge Operator....................  Corresponds with
          Helpers.                                                                         present STB No. 102.

[[Page 199]]

 
    520  Bridge and Crossing   Title is descriptive  Bridge Flagman, Crossing Gateman...  Corresponds with
          Flagmen and Gatemen.                                                             present STB No. 103.
    521  Yard Clerks.........  Clerical occupations  Yard Clerk, Yard Clerk Caller, Yard  New classification.
                                situated in yards     Demurrage Clerk, Yard Dispatcher
                                and yard offices.     Clerk, Piggyback Clerk.
    522  Crew Dispatchers....  Title is descriptive  Crew Dispatcher, Crew Caller.......  New classification.
    523  Yardmasters and       Title is descriptive  Yardmaster, Assistant Yardmaster...  Consolidates present
          Assistant                                                                        STB No. 105 and 106.
          Yardmasters.
    600     Transportation,
            Train and Engine
    601  Switchtenders.......  Title is descriptive  Switchtender.......................  Corresponds to present
                                                                                           STB No. 107.
    602  Car Retarder          Ground occupations    Car Retarder Operator, Skatesman,    New classification--
          Operators and         not part of yard      Herder, Yard Pilot.                  part of present STB
          Ground Service        crew.                                                      No. 119; adds new
          Employees.                                                                       titles.
    603  Outside Hostlers....  Title is descriptive  Outside Hostler....................  Corresponds to present
                                                                                           STB No. 108.
    604  Outside Hostler       Title is descriptive  Outside Hostler Helper.............  Corresponds to present
          Helpers.                                                                         STB No. 110.
    605  Inside Hostler......  Title is descriptive  Inside Hostler.....................  Corresponds to present
                                                                                           STB No. 109.
    606  Road Passenger        Title is descriptive  Passenger Conductor................  Corresponds to present
          Conductors.                                                                      STB No. 111.
    607  Assistant Road        Title is descriptive  Assistant Passenger Conductor,       Corresponds to present
          Passenger                                   Ticket Collector.                    STB No. 112.
          Conductors and
          Ticket Collectors.
    608  Road Freight          Title is descriptive  Freight Conductor, Work Train        Corresponds to present
          Conductors (Through                         Conductor, (paid through rate).      STB No. 113.
          Freight).
    609  Road Freight          Title is descriptive  Freight Conductor, Work Train        Corresponds to present
          Conductors (Local                           Conductor, (paid local rate).        STB No. 114.
          and Way Freight).
    610  Road Passenger        Title is descriptive  Baggageperson......................  Corresponds to present
          Baggageperson.                                                                   STB No. 115.
    611  Road Passenger        Title is descriptive  Passenger Brakeman, Passenger        Corresponds to present
          Brakemen and                                Flagman.                             STB No. 116.
          Flagmen.
    612  Road Freight          Title is descriptive  Freight Brakeman, Freight Flagman,   Corresponds to present
          Brakemen and                                Work Train Brakeman (paid through    STB No. 117.
          Flagmen (Through                            rate).
          Freight).
    613  Road Freight          Title is descriptive  Freight Brakeman, Freight Flagman,   Corresponds to present
          Brakemen and                                Work Train Brakeman, (paid local     STB No. 118.
          Flagmen (Local and                          rate).
          Way Freight).
    614  Yard Conductors and   Title is descriptive  Yard Conductor, Yard Foreman.......  Corresponds to present
          Yard Foremen.                                                                    STB No. 119 Less Car
                                                                                           Retarder Operator and
                                                                                           other ground
                                                                                           occupations not part
                                                                                           of Yard Crew.
    615  Yard Brakemen and     Title is descriptive  Yard Brakeman, Yard Helper.........  Corresponds to present
          Yard Helpers.                                                                    STB No. 120; adds new
                                                                                           titles.
    616  Road Passenger        Title is descriptive  Passenger Engineer, Motorman,        Corresponds to present
          Engineers and                               Operator.                            STB No. 121.
          Motormen.
    617  Road Freight          Title is descriptive  Freight Engineer, Work Train         Corresponds to present
          Engineers (Through                          Engineer, (paid through rate).       STB No. 122.
          Freight).
    618  Road Freight          Title is descriptive  Freight Engineer, Work Train         Corresponds to present
          Engineers (Local                            Engineer, (paid local rate).         STB No. 123.
          and Way Freight).
    619  Yard Engineers......  Title is descriptive  Yard Engineer......................  Corresponds to present
                                                                                           STB No. 124.
    620  Road Passenger        Title is descriptive  Passenger Fireman..................  Corresponds to present
          Firemen and Helpers.                                                             STB No. 125.
    621  Road freight Firemen  Title is descriptive  Freight Fireman....................  Corresponds to present
          and Helpers                                                                      STB No. 126.
          (Through Freight).
    622  Road Freight Firemen  Title is descriptive  Freight Fireman....................  Corresponds to present
          and Helpers (Local                                                               STB No. 127.
          and Way Freight).

[[Page 200]]

 
    623  Yard Firemen and      Title is descriptive  Yard Fireman.......................  Corresponds to present
          Helpers.                                                                         STB No. 128.
----------------------------------------------------------------------------------------------------------------


[47 FR 53868, Nov. 30, 1982, as amended at 50 FR 947, Jan. 8, 1985]

[[Page 201]]



Sec.  1245.6  Cross reference to standard occupational classification manual.

------------------------------------------------------------------------
                Job title                               SOC
------------------------------------------------------------------------
100 Executives, Officials and Staff
 Assistants
101 Executive and General Officers:
  President..............................  121.
  Vice President.........................  121.
  Assist. Vice President.................  121.
  Controller.............................  122.
  Treasurer..............................  122.
  Director (Head of Sub-Department)......  139.
  General Superintendent.................  139.
  Subdepartment Head.....................  139.
  Chief Engineer.........................  1342 and 1639.
  General Manager (Dept. or Subdepartment  137.
   Head).
102 Corporate Staff Managers:
  Director (Other Than Sub-department      139.
   Head).
  Assist. Director.......................  139.
  Assist. General Manager (Not Regional).  137.
  Manager................................  137.
  Assist. Manager........................  137.
  Assist. Chief Engineer.................  1639.
  Purchasing Agent.......................  1449.
  Superintendent (Not Division)..........  1342.
  Assist. to (Corporate Executive or Gen.  149.
   Officer).
  Executive Assist. (To Corporate          149.
   Executive).
  Budget Officer.........................  1419.
103 Regional and Division Officers,
 Assistants and Staff Assistants:
  Assist. General Manager................  137.
  Assist. Regional Manager...............  1342.
  General Superintendent.................  1342.
  Assist. to General Manager.............  137.
  Division Superintendent................  1342.
  Master Mechanic........................  6117.
  Division Sales Manager.................  125.
  District Sales Manager.................  125.
  Assist. Master Mechanic................  6117.
  District Engineer......................  1342 and 1639.
  Assist. Superintendent.................  1342.
  Captain of Police......................  5112.
  Division Engineer......................  1638 and 1342.
  Manager of Materials...................  4525.
  Safety Inspector.......................  1473.
  Real Estate Agent......................  1353.
  Real Estate Supv.......................  1353.
  Tax Agent..............................  1412.
  Buyer..................................  1449.
  Assist. Buyer..........................  1449.
  Sales Agent............................  4235.
  Assist. Sales Agent....................  4235.
104 Transportation Officers/Managers:
  Train Master...........................  1342.
  Assist. Train Master...................  1342.
  General Yard Master....................  8113.
  General Road Foreman...................  1342.
  Road Foreman...........................  1342.
  Assist. Road Foreman...................  1342.
  Chief, Power Supervisor (Motive).......  1342.
200 Professional and Administrative
201 Professionals (Other Than Those
 Reported in 101 and 102):
  General Counsel........................  211.
  Assist. General Counsel................  211.
  General Attorney.......................  211.
  Assist. General Attorney...............  211.
  Attorney...............................  211.
  Commerce Counsel.......................  211.
  Chief Medical Officer..................  261.
  Medical Officer........................  261.
  Surgeon................................  261.
  Company Surgeon........................  261.
  Engineer...............................  1639.
  Architect..............................  161.
  Chief Chemist..........................  1845.
  Nurse..................................  29 and 366.
  Tax Accountant.........................  1412.
  Internal Auditor to Gen. Accountant....  1412.
  Corporate Accountant...................  1412.
  Supervisor Programming.................  137.
  Senior Computer System.................  1712.
  Specialist Senior System Analyst.......  1712.
202 Subprofessionals:
  Draftsman..............................  372.
  Chemist................................  1845.
  Assist. Chemist........................  1845.
  X-ray Technician.......................  365.
  Supv. Estimating.......................  149.
  Junior Engineer........................  1639.
  Engineer Trainee.......................  1639.
  Photographer...........................  326.
  Computer Programmer....................  397.
  Computer Analyst.......................  1712.
  Market Analyst.........................  1912.
  Pricing Analyst........................  4716.
  Employment Supv........................  123.
  Research Analyst.......................  1721.
203 Auditors, Traveling Auditors or
 Accountants:
  Traveling Auditor......................  1412.
  Accounting Specialist Auditor..........  1412.
  Operations Traveling Auditor...........  1412
  Station Auditors.......................  1412.
204 General and Administrative
 Supervisors:
  General Supv...........................  4511 and 137.
  Supv...................................  4511 and 137.
  Chief Clerk............................  4511 and 137.
  Office Supv............................  4511 and 137.
  Supv. Admin............................  149.
  Office Manager.........................  137.
  Supv. Clerk............................  4511 and 137.
  Head Clerk.............................  4511 and 137.
  Assist. Chief Clerk....................  4511 and 137.
  Supv. Cashier..........................  4529.
  Division Supv..........................  4511 and 137.
  Regional Supv..........................  4511 and 137.
  Budget Supv............................  1419.
  Admin. Supv............................  149.
  Admin. Assist..........................  149.
205 Sales and Traffic Representatives and
 Agents:
  Freight Traffic Agent..................  4152.
  Coal Traffic Agent.....................  4152.
  Sales Representative...................  4152.
  Freight Sales Representative...........  4152.
  Freight Traffic Representative.........  4152.
  Passenger Sales Representative.........  4152.
206 Freight and other Claim Agents and
 Investigators:
  Claim Agent............................  4712.
  Claim Investigator.....................  4783.
  Freight Claim Agent....................  4712.
  Freight Claim Investigator.............  4783.
207 Supervising and Chief Claim Agents:
  Chief Claim Agent......................  4529 and 1473.
  Chief Freight Claim Agent..............  4528.
  Assist. Chief Claim Agent..............  4528 and 1473.
  Chief District Claim Agent.............  4528.
  District Freight Claim Agent...........  4528.
  Chief Claim Investigator...............  4783.

[[Page 202]]

 
208 Lieutenants and Sergeants of Police:
  Police Lieutenant......................  5112.
  Police Sergeant........................  5112.
209 Police Officers, Watchmen and Guards
 (Except Crossing and Bridge):
  Police Officer.........................  5132.
  Patrolman..............................  5144.
  Watchman...............................  5144.
  Guard..................................  5144.
210 Inspectors (Except Maintenance of
 Wage and Equipment) other Investigators,
 Examiners, Instructors, and other Agents
 (except Station Agents):
  Rules Examiner.........................  1473.
  Supv. Rules............................  1473.
  Safety Supv............................  1473.
  Fire Marshall..........................  5122.
  Fire Chief.............................  1131 and 5111.
  Instructor.............................  239.
  Supv. Procedures.......................  4525.
  Supv. Yard Procedure...................  4525.
212 Clerical Technicians and Clerical
 Specialists:
  Lead Clerk.............................  4511 and 463.
  Staff Assistant (Clerical).............  4511 and 463.
  Statistician...........................  1733.
  Cashier................................  4364.
  Teller.................................  4364.
  Assist. Statistician...................  1733.
  Rate Clerk.............................  4716.
  Pricing Clerk..........................  4716.
  Computer Technician....................  4612.
213 Office Machine and Data Equipment
 Operators:
  Machine Operator.......................  4718.
  Clerk..................................  463
  Computer Operator......................  4612.
  Keypunch Operator......................  4793.
  Office Machine Technician..............  4718.
214 Secretaries, Stenographers, and
 Typists:
  Secretary..............................  4622.
  Stenographer...........................  4623.
  Typist.................................  4624.
  Clerk Typists..........................  4624.
  Steno. Clerk...........................  4623.
215 General and other Clerks (Excluding
 Yard Clerk and Crew Dispatcher):
  File Clerk.............................  4696.
  General Clerk..........................  463.
  Bookkeeper.............................  4712.
  Ticket Clerk...........................  4644.
  Records Clerk..........................  4696.
  Trace Clerk............................  463.
  Assignment Clerk.......................  4752.
  Personnel Clerk........................  4692.
  M of W Clerks..........................  4699.
  M of E Clerks..........................  4699.
216 Telephone and Switchboard Operators:
  Switchboard Operator...................  4732.
  Chief Operator.........................  4523.
217 Building and Office Attendants:
  Elevator Operator......................  5245.
  Elevator Starter.......................  5241.
  Janitor................................  5244.
  Cleaner................................  5244.
  Porter.................................  5244.
218 Messengers and Office Persons:
  Messenger..............................  4745.
  Office Person..........................  4745.
219 Motor Vehicle Operators:
  Truck Driver...........................  8213 and 8214.
  Bus Driver.............................  8215.
  Driver Chauffeur.......................  8216.
300 Maintenance of Way and Structures
301 Supervisors, Maintenance of Way,
 Structures, Communication and Signals:
  Roadmaster.............................  1342.
  Division Roadmaster....................  1342.
  Supv. Track............................  812.
  Supv. Bridges and Buildings............  133.
  Supv. Communications & Signals.........  1341.
  Assist. Supv...........................  1341.
  General Foreman........................  1342.
  Assist. General Foreman................  1342.
  Master Carpenter.......................  6313.
  Chief Draftsman........................  372.
302 Maintenance of Way, Structures,
 Communication and Signals, and Scale
 Inspectors:
  Chief Bridges & Building Inspector.....  782.
  Chief Scale Inspector..................  782.
  Bridge & Building Inspector............  1472.
  Scale Inspector........................  782.
  Roadway Equipment Inspector............  828.
  Track and Roadway Inspector............  828.
  Instrument Man.........................  6881 and 6151.
  Roadman................................  1472 and 8769.
  Chainman...............................  613.
  Inspector Communications & Signals.....  1341.
  Signal Inspector.......................  1341.
303 Bridge and Building Gang Foreman:
  Gang Foreman...........................  6318.
  Lead Foreman...........................  6318.
304 Bridge and Building Carpenter:         6422.
 Carpenter.
305 Bridge and Building Ironworkers: Iron  6473.
 Worker.
306 Bridge and Building Painter:
  Painter................................  6442.
  Sign Painter...........................  6863.
307 Masons, Bricklayers, Plasterers, and
 Plumbers:
  Mason..................................  6413, 6444, 6463, and 6412.
  Bricklayer.............................  6412.
  Plasterer..............................  6444.
  Plumber................................  645.
  Operator...............................  6467.
  Grinder................................  6467.
  Welder.................................  7714.
308 Bridge and Building Helpers and
 Apprentices:
  Bridge and Building Helper Appr........  6473.
  Carpenter Helper.......................  8642.
  Iron Worker Helper.....................  6473 and 862.
  Mason Helper...........................  8641.
  Plumber Helper.........................  8645.
  Painter Helper.........................  8644.
  Apprentice, Carpenter..................  6422.
  Apprentice, Iron Worker................  6473.
  Apprentice Mason.......................  6412, 6413, 6444, and 6463.
  Plumber Apprentice.....................  645.
  Apprentice Painter.....................  6442 and 8644.
  Welder Helper..........................  862.
309 Bridge and Building Gang and Bridge    871.
 and Building Department Labors: Bridge
 and Building Labor.
310 Track Gang Foreman (Extra Gang Work
 Train Laborers):
  Gang Foreman (Track)...................  6318.

[[Page 203]]

 
  Assist. Foreman........................  6318.
311 Gang or Section Foreman:
  Gang Foreman...........................  6318.
  Assist. Foreman........................  6318.
  Section Foreman........................  6318.
312 Extra Gang Laborers:
  Trackman...............................  6467.
  Fence Laborer..........................  6479 and 8769.
313 Section Laborers:
  Trackman...............................  8769.
  Track & Roadway Section Labor..........  8769.
314 Machine Operators:
  Craneman...............................  8315.
  Portable Equipment Engineer............  8312.
  Portable Equipment Operator............  8319.
  Machine Operator.......................  8319.
  Helper.................................  8618.
315 Gang Foreman, Communications and
 Signals:
  Gang foreman...........................  6318.
  Assist. Gang Foreman...................  6318.
  Lead Signal Maintainer.................  6318.
316 Signal and Signal Maintainer:
  Signalman..............................  8233.
  Signal Maintainer......................  6151 and 8233.
317 Linemen and Groundmen and
 Communications Craftsman:
  Electrical Worker (lineman)............  6433.
  Electrical Worker (groundsman).........  6432.
  Communications Maintainer..............  6151.
318 Assistant Signalmen and Assistant
 Signalmen Maintainers:
  Assist. Signalman......................  8233 and 6151.
  Assist. Signal Maintainer..............  6151 and 8233.
319 Signal Helpers and Signal Maintainer
 Helpers:
  Signalman Helper.......................  8635.
  Signalman Maintainer Helper............  8635.
320 Camp Car Cooks:
  Camp Car Cook..........................  5214.
  Camp Car Helper........................  5219.
400 Maintenance of Equipment and Stores
401 Supervisors and General Foreman,
 Maintenance of Equipment:
  General Foreman Shop...................  6318 and 1342.
  General Foreman Enginehouse............  6318 and 1342.
  General Foreman Diesel Terminal........  6318 and 1342.
  Assist. General Foreman (M&E)..........  6318 and 1342.
402 Supervisors and General Foreman,
 Materials and Stores:
  Supv. Materials........................  4525.
  Assist. Supv. Materials................  4525.
  General Foreman Stores.................  4524.
  General Foreman Reclamations Plant.....  6318.
  Assist. General Foreman................  6318.
403 Equipment, Shop, Electrical
 Inspectors:
  Chief Electrical Inspector.............  6314.
  Chief Shop & Equipment Inspector.......  1472.
  Electrical Inspector...................  1472.
  Equipment Inspector....................  6881.
  Inspector Diesel locomotive............  6881.
  Fuel Inspector.........................  6831.
404 Materials and Supplies Inspector:
  Materials and Supplies Inspector.......  782.
  Chief Materials and Supplies...........  4525.
  Inspector..............................  782.
  Timber Inspector.......................  782.
  Tie Inspector..........................  782.
405 Storekeeper:
  Storekeeper............................  4754.
  Assist. Storekeeper....................  4754.
  Materials Clerk........................  4754.
  Store Clerk............................  4754.
406 Gang Foreman, Maintenance of           6318.
 Equipment: Gang Foreman.
407 Blacksmith:..........................
  Blacksmiths............................  6179.
408 Boilermakers:........................
  Boilermaker............................  6814.
409 Carmen (Freight):
  Car Repairmen..........................  6117.
  Car Inspector..........................  828.
  Car Painter............................  6442.
410 Carmen (other):......................
  Carman.................................  6117.
411 Electrical Workers (A):
  Electrician............................  6432.
  Electrical Worker......................  6159.
412 Electrical Workers (B):
  Crane Operator.........................  8315.
  Load Dispatcher........................  4751.
  Power Station Operator.................  6932.
  Assist. Power Director.................  6932.
413 Electrical Workers (C):
  Coal and Ore Elevator Operator (elec)..  8319.
  Grain Elevator Operator (electrical)...  8319.
414 Machinists:..........................
  Machinist..............................  6813.
415 Sheet Metal Workers:.................
  Sheet Metal Worker.....................  6824.
416 Skilled Trades, Helpers, Maintenance   861, 862, 863, and 864.
 of Equipment and Stores: Helper.
417 Apprentices, Maintenance of Equipment
 and Stores:
  Apprentice.............................  863.
  Helper Apprentices.....................  863.
418 Coach Cleaners: Coach Cleaner........  875.
419 Laborers; Shops, Enginehouses, and     8769, 86, and 87.
 Power Plants: Laborer.
420 Gang Foreman, Materials and Stores:    6318.
 Gang Foreman.
421 Equipment Operators and General
 Laborers, Materials and Stores:
  Laborer................................  8725, and 8769.
  Materials Handler......................  8726.
  Equipment Operator.....................  8239.
  Machine Operator.......................  8319.
422 Stationary Engineers:
  Chief Engineer (Steam Plant)...........  6932.
  Engineer...............................  6932.
  Stationary Engineer....................  6931.
423 Stationary Firemen:
  Stationary Fireman.....................  5122 and 8619.
  Power Equipment Operator Helper........  8319.
  Oiler..................................  614.
500 Transportation other Than Train and
 Engine
501 Transportation Supervisor and Chief
 Train Dispatcher:
  Chief Train Dispatcher.................  8113.
  Supv. Train Operator...................  1342.
  Transportation Supv....................  1342.
  Supv. Locomotives and Car Dist.........  4759 and 8111.
  Assist. Chief Train Dispatcher.........  8113.
502 Train Dispatchers: Train Dispatcher..  8113.
503 Station, Freight and Passenger
 Agents:
  Supv. Station Agent....................  4514.
  Assist. Supv. Station Agent............  4514.
  Station Agent..........................  4514.
  Freight Agent..........................  4644.
  Passenger Agent........................  4644.

[[Page 204]]

 
  Ticket Agent...........................  4644.
  Traveling Agent........................  4644.
  Agent Operators........................  4514.
504 Chief Operators and Wire Chiefs:
  Supv. Operator.........................  4523.
  Chief Operator.........................  4523.
  Assist. Supv. Operator.................  4523.
  Wire Chief.............................  4523 and 60.
505 Clerk Operators, Towerman, Train
 Directors:
  Clerk Operator.........................  4632.
  Block Operator.........................  4632.
  Operator...............................  4632.
  Towerman...............................  8239.
  Train Director.........................  8113.
506 Station Masters and Assistants,
 Supervising Baggage Agents, Baggage
 Agents and Assistants:
  Stationmaster..........................  1342.
  Assist. Station Master.................  1342.
  Supv. Baggage Agent....................  4525.
  Baggage Agent..........................  5262.
  Assist. Baggage Agent..................  5262.
  Parcel Room Agent......................  4744.
507 Baggage Parcel Room and Station
 Attendants:
  Baggage Attendant......................  5262.
  Parcel Room Attendant..................  4744.
  Station Attendant......................  4514.
  Gateman................................  5144.
  Announcer..............................  4649.
  Station Usher..........................  5256.
  Red Cap................................  5262.
  Information Bureau Attendant...........  4649.
508 General and Assistant General
 Foreman, Stations. Warehouses, Grain
 Elevators and Docks:
  General Foreman........................  6318.
  Assist. General Foreman................  6318.
509 Gang Foreman, Stations, Warehouses,
 Grain Elevators and Docks:
  Gang Foreman...........................  6318.
510 Grain Elevator and Dock Laborers:
  Laborer................................  8242.
511 Station and Warehouse Laborers:
  Loader.................................  8726.
  Sealer.................................  8769 and 8724.
512 Trucks (Station, Warehouse and
 Platforms):
  Trucker................................  8214.
513 Food and Lodging Manager,
 Supervisors:
  Manager Lodging House..................  1351.
  Restaurant Manager.....................  1351.
  Dining Car Supv........................  5211, and 1473.
  Dinning car Steward....................  5211.
514 Transportation and Dining Service
 Inspectors:
  Instructor Chef........................  5214.
  Restaurant Inspector...................  828.
  Freight Service Inspector..............  828.
  Baggage Inspector......................  828.
515 Waiters and Kitchen Helpers
 (Restaurant and Dining):
  Waiter-in-Charge.......................  5211.
  Waiter.................................  5211.
516 Chefs and Cooks (Restaurant and
 Dining Car):
  Chef...................................  5211.
  Cook...................................  5211 and 5214.
517 Marine Officers and Workers and Shore
 Workers:
  Captain................................  8242.
  Engineer...............................  8244.
  Mate...................................  8242.
  Deckhand...............................  8243.
  Oiler Purser...........................  8244.
  Boat Master............................  8241.
  Fireman................................  8243.
  Wharf Master...........................  1342.
  Able Seaman............................  8243.
  Baggageman.............................  5262.
  Boat Dispatcher........................  1342.
518 Train Attendants:
  Porter.................................  5262.
  Buffet Lounge Attendant................  4366.
  Stewardess.............................  5211.
519 Bridge Operators and Helpers: Bridge   8245.
 Operator.
520 Bridge and Crossing Flagmen and
 Gatemen:
  Bridge Flagman.........................  8769.
  Crossing Gateman.......................  5144.
521 Yard Clerks:
  Yard Clerk.............................  4754.
  Yard Caller............................  4745.
  Yard Dispatcher Clerk..................  4752.
  Piggyback Clerk........................  4753.
  Yard Demurrage Clerk...................  4715.
522 Crew Dispatchers:
  Crew Dispatcher........................  4751 and 4525.
  Crew Caller............................  4745.
523 Yardmasters and Assistant
 Yardmasters:
  Yardmaster.............................  8113.
  Assist. Yardmaster.....................  8113.
600 Transportation, Train and Engine       .............................
601 Switchtenders: Switchtender..........  8233.
602 Car Retarder Operators and Ground
 Service Employees:
  Car Retarder Operator..................  8239.
  Skatesman..............................  8769.
  Herder.................................  8769.
  Yard Pilot.............................  8113.
603 Outside Hostlers: Outside Hostler....  8232.
604 Outside Hostlers Helpers: Outside      8232.
 Hostler Helper.
605 Inside Hostlers: Inside Hostler......  8232.
606 Road Passenger Conductors: Passenger   8113.
 Conductor.
607 Assistant Road Passenger Conductor
 and Ticket Collectors:
  Assistant Passenger Conductor..........  8113.
  Ticket Collector.......................  5256.
608 Road Freight Conductors (Through
 Freight):
  Freight Conductor......................  8113.
  Work Train Conductor...................  8113.
609 Road Freight Conductors (Local and
 Way Freight):
  Freight Conductor......................  8113.
  Work Train Conductor...................  8113.
610 Road Passenger Baggagepersons:         5262.
 Baggageperson.
611 Road Passenger Brakeman and Flagman:
  Passenger Brakeman.....................  8233.
  Passenger Flagman......................  5142.
612 Road Freight Brakemen and Flagmen
 (Through Freight):
  Freight Brakeman.......................  8233.
  Freight Flagman........................  5142.
  Work Train Brakeman....................  8233.
613 Road Freight Brakemen and Flagmen
 (Local and Way Freight):
  Freight Brakeman.......................  8233.
  Freight Flagman........................  5142.

[[Page 205]]

 
  Work Train Brakeman....................  8233.
614 Yard Conductors and Yard Foremen:
  Yard Conductor.........................  8113.
  Yard Foreman...........................  8113.
615 Yard Brakemen and Yard Helpers:
  Yard Brakeman..........................  8233.
  Yard Helper............................  8769.
616 Road Passengers Engineers and
 Motormen:
  Passenger Engineer.....................  8232.
  Motorman Operator......................  8232.
617 Road Freight Engineers (Through
 Freight):
  Freight Engineer.......................  8232.
  Work Train Engineer....................  8232.
618 Road Freight Engineers (Local and Way
 Freight):
  Freight Engineer.......................  8232.
  Work Train Engineer....................  8232.
619 Yard Engineers: Yard Engineer........  8232.
620 Road Passenger Firemen and Helpers:    8232.
 Passenger Fireman.
621 Road Freight Firemen and Helpers       8232.
 (Through Freight): Freight Fireman.
622 Road Freight Firemen and Helpers       8232.
 (Local and Way Freight): Freight Fireman.
623 Yard Firemen and Helpers: Yard         8232.
 Fireman.
------------------------------------------------------------------------


[47 FR 53871, Nov. 30, 1982, as amended at 50 FR 947, Jan. 8, 1985]



PART 1246_NUMBER OF RAILROAD EMPLOYEES--Table of Contents



    Authority: 49 U.S.C. 721, 11145.



Sec.  1246.1  Monthly report of number of railroad employees.

    Each class I railroad shall file a Monthly Report of Number of 
Railroad Employees (Form MRRE) each month. The report should be mailed 
to Bureau of Accounts, Surface Transportation Board, Washington, DC 
20423, by the end of the month to which it applies.

[47 FR 53868, Nov. 30, 1982]
    Note: The report forms prescribed by parts 1245 and 1246 are 
available upon request from the Office of Economics, Environmental 
Analysis, and Administration, Surface Transportation Board, Washington, 
DC 20423-0001.



PART 1247_REPORT OF CARS LOADED AND CARS TERMINATED--Table of Contents



    Authority: 49 U.S.C. 721, 10707, 11144, 11145.

    Source: 66 FR 1052, Jan. 5, 2001, unless otherwise noted.



Sec.  1247.1  Annual Report of Cars Loaded and Cars Terminated.

    Beginning with the reporting period commencing January 1, 2001, and 
annually thereafter, each Class I railroad shall file Form STB-54, 
Annual Report of Cars Loaded and Cars Terminated, together with the 
accompanying certification, with the Office of Economics, Environmental 
Analysis, and Administration (OEEAA), Surface Transportation Board, 
Washington, DC 20243, within 90 days after the end of the reporting 
year. Blank forms and instructions are available on the Board's web site 
(http://www.stb.dot.gov/infoex1.htm#forms) or can be obtained by 
contacting OEEAA.



PART 1248_FREIGHT COMMODITY STATISTICS--Table of Contents



                           Subpart A_Railroads

Sec.
1248.1 Freight commodity statistics.
1248.2 Items to be reported.
1248.3 Carload and L.C.L. traffic defined.
1248.4 Originating and connecting line traffic.
1248.5 Report forms and date of filing.
1248.6 Public inspection--railroad reports.

                        Subpart B_Commodity Code

1248.100 Commodity classification designated.
1248.101 Commodity codes required.
    Note: The report forms prescribed by part 1248 are available upon 
request from the Economics, Environmental Analysis, and Administration, 
Surface Transportation Board, Washington, DC 20423-0001.

    Authority: 49 U.S.C. 721, 11144 and 11145.



Sec.  1248.1  Freight commodity statistics.

    All class I railroads, as described in Sec.  1240.1 of this chapter, 
subject to Part I of the Interstate Commerce Act, shall compile and 
report freight commodity statistics on the basis of the commodity codes 
named in Sec.  1248.101. Carriers shall report quarterly on the basis of 
the 3, 4 and 5-digit commodity codes named in that section. Such reports 
shall be made in conformity with the outline of terms set forth in 
Sec. Sec.  1248.2 to 1248.5, inclusive, as supplemented by

[[Page 206]]

instructions included in the appropriate report form to be supplied to 
the reporting railroads.

[47 FR 6880, Feb. 17, 1982]



Sec.  1248.2  Items to be reported.

    (a) The following items are to be reported quarterly and annually by 
class I railroads:
    (1) Average number of miles of road operated in freight service.
    (2) For each commodity code used in reporting, except that the 
number of carloads for commodity code 431, ``Small packaged freight 
shipments,'' shall be omitted, the following items:

Revenue freight originating on respondent's road:
    Terminating on line:
Number of carloads.
Number of tons (2,000 pounds).
    Delivered to connecting rail carriers.
Number of carloads.
Number of tons (2,000 pounds).
Revenue freight received from connecting rail carriers:
    Terminating on line:
Number of carloads.
Number of tons (2,000 pounds).
    Delivered to connecting rail carriers:
Number of carloads.
Number of tons (2,000 pounds).
    Total revenue freight carried:
Number of carloads.
Number of tons (2,000 pounds).
    Gross freight revenue.

    (b) [Reserved]

[32 FR 20466, Dec. 20, 1967, as amended at 47 FR 6880, Feb. 17, 1982]



Sec.  1248.3  Carload and L.C.L. traffic defined.

    (a) Commodity codes 01 through 422 and 44 through 462, named in 
Sec.  1248.101, shall include only carload traffic. All shipments 
weighing less than 10,000 pounds shall be included in commodity code 
431, ``Small packaged freight shipments.''
    (b) A carload for the purpose of this order shall consist of a 
shipment of not less than 10,000 pounds of one commodity. A mixed 
carload for the purpose of this order shall be treated as a carload of 
that commodity which forms the major portion of the shipment in weight. 
If a single shipment is loaded into more than one car, each car used 
shall be reported as a carload. If more than one carload shipment is 
loaded into one car, each shipment shall be reported separately as a 
carload.

[32 FR 20466, Dec. 20, 1967]



Sec.  1248.4  Originating and connecting line traffic.

    (a) Revenue freight reported as received from connecting rail 
carriers shall include all shipments received from connecting rail 
carriers, either directly or indirectly, so far as apparent from 
information on the waybills or abstracts.
    (b) Revenue freight reported as originating on respondent's road 
shall include shipments originating on line and shipments received from 
water lines and highway motor truck lines, except when identified as 
having had previous rail transportation, as provided in paragraph (a) of 
this section.
    (c) Freight which receives its first line-haul on respondent's road, 
but originates on switching roads connecting directly or indirectly with 
respondent's line, shall be reported as freight originated by 
respondent.
    (d) Revenue freight reported as delivered to connecting rail 
carriers shall include shipments delivered to connecting rail carriers, 
either directly or indirectly, as far as apparent from information on 
waybills or abstracts.
    (e) Revenue freight reported as terminating on respondent's road 
shall include shipments terminating on line and shipments delivered to 
water lines and highway motor truck lines, except when identified as to 
receive further rail transportation as provided in paragraph (d) of this 
section.
    (f) Freight which receives its last line haul on respondent's line, 
but is delivered to a switching road connecting directly or indirectly 
with respondent's line, shall be reported as freight terminated by 
respondent.
    (g) Import and export traffic received from or delivered to water 
carriers and traffic from and to outlying possessions of the United 
States received from or delivered to water carriers shall be reported as 
originating or terminating at the port of entry or exit.
    (h) Traffic interchanged with connecting rail lines operating in 
Canada and Mexico shall be reported as delivered to or received from 
connecting rail carriers.

[[Page 207]]

    (i) Lake cargo coal delivered to lower Lake and St. Lawrence River 
ports for transshipment by vessel shall be reported as delivered to 
connecting rail carrier. Lake cargo coal received at upper Lake ports 
shall be reported as received from connecting rail carriers.
    (j) Iron ore delivered to upper Lake ports for transshipment by 
vessel shall be reported as delivered to connecting rail carriers. Iron 
ore received at lower Lake and St. Lawrence River ports shall be 
reported as received from connecting rail carriers.
    (k) Tidewater coal to Atlantic ports shall be reported as 
``delivered to connecting rail carriers.'' Tidewater coal from Atlantic 
ports shall be reported as ``received from connecting rail carriers.''
    (l) Freight accorded transit privileges shall be reported as 
``originated on respondent's road'' at the transit point, even though 
the outbound shipment may move under transit balances or proportional 
rates.
    (m) ``Gross freight revenue'' means respondent's gross revenue from 
freight without adjustment for absorptions or corrections.
    (n) Commodity codes 44 and 441, ``Freight forwarder traffic,'' as 
named in Sec.  1248.101, include freight traffic in carloads shipped by 
or consigned to any forwarder holding a certificate under Part IV of the 
Interstate Commerce Act.

[32 FR 20466, Dec. 20, 1967]



Sec.  1248.5  Report forms and date of filing.

    (a) Reports required from class I carriers by this section shall be 
filed in duplicate with the Bureau of Accounts, Surface Transportation 
Board, Washington, DC 20423, on forms which will be furnished to the 
carriers. Data required under Sec.  1248.2 shall be filed on Form QCS on 
or before the 60th day succeeding the close of the period for which they 
are compiled.
    (b) [Reserved]
    Note: The outline of Report Form QCS follows the tenor of the order.

[32 FR 20466, Dec. 20, 1967, as amended at 47 FR 6881, Feb. 17, 1982]



Sec.  1248.6  Public inspection--railroad reports.

    The individual commodity statistics reports of class I railroads, 
required to be filed, for the year beginning January 1, 1964, or for 
quarters thereof, and for the quarters of 1965, as the case might be, 
under the terms of Sec.  123.1, shall not be open to public inspection, 
and such required commodity statistics reports, to be filed for the 
years beginning January 1, 1965, and for the quarters of the year 
beginning January 1, 1966, and later, to the extent that they involve 
traffic of less than three shippers, reportable in one of the commodity 
reporting classes, may be excluded from a railroad's regular freight 
commodity statistics report and filed in a supplemental report which 
will not be open for public inspection, except that access to 
supplemental reports may be given upon approval by the Board.

[32 FR 20466, Dec. 20, 1967, as amended at 47 FR 6881, Feb. 17, 1982]



                        Subpart B_Commodity Code

    Authority: 49 U.S.C. 721, 11144, 11145.



Sec.  1248.100  Commodity classification designated.

    Commencing with reports for the year or quarter beginning January 1, 
1964, as the case might be, and thereafter until further order, reports 
of commodity statistics required to be made to the Board, shall be based 
on the commodity codes, up to 5 digits, in groups 01 through 40, in the 
Commodity Classification for Transportation Statistics, 1963, issued by 
the Bureau of the Budget, and on additional codes 411 through 462 shown 
in Sec.  1248.101.

[32 FR 20466, Dec. 20, 1967. Redesignated at 46 FR 9116, Jan. 28, 1981, 
and 46 FR 10745, Feb. 4, 1981]



Sec.  1248.101  Commodity codes required.

    Commodity codes required to be reported, as referred to in this 
part, are as follows:

------------------------------------------------------------------------
              Code                              Description
------------------------------------------------------------------------
01                                Farm Products.
011                                Field Crops.
0112                               Cotton, raw.

[[Page 208]]

 
01121                              Cotton in bales.
01131                              Barley.
01132                              Corn, except popcorn.
01133                              Oats.
01134                              Rice, rough.
01135                              Rye.
01136                              Sorghum grains.
01137                              Wheat, except buckwheat.
01139                              Grain, n.e.c.
0114                               Oil seeds, oil nuts, and oil kernels,
                                   except edible tree nuts.
01144                              Soybeans.
0115                               Field seeds, except oil seeds.
0119                               Miscellaneous field crops.
01193                              Leaf tobacco.
01195                              Potatoes, other than sweet.
01197                              Sugar beets.
012                                Fresh Fruits and Tree Nuts.
0121                               Citrus fruits.
0122                               Deciduous fruits.
01221                              Apples.
01224                              Grapes.
01226                              Peaches.
0123                               Tropical fruits, except citrus.
01232                              Bananas.
0129                               Miscellaneous fresh fruits and tree
                                   nuts.
01295                              Coffee, green.
013                                Fresh Vegetables.
0131                               Bulbs, roots, and tubers, with or
                                   without tops except potatoes.
01318                              Onions, dry.
0133                               Leafy fresh vegetables.
01334                              Celery.
01335                              Lettuce.
0134                               Dry ripe vegetable seeds, etc.
                                   (except artifically dried).
01341                              Beans, dry ripe.
01342                              Peas, dry.
0139                               Miscellaneous fresh vegetables:
01392                              Watermelons.
01394                              Tomatoes.
01398                              Melons, except watermelons
                                   (cantaloupes, muskmelons, etc.).
014                                Livestock and Livestock Products.
0141                               Livestock.
01411                              Cattle.
01413                              Hogs and pigs.
01414                              Sheep and lambs.
0142                               Dairy farm products, except
                                   pasteurized.
0143                               Animal fibers.
01431                              Wool.
015                                Poultry and Poultry Products.
0151                               Live poultry.
0152                               Poultry eggs.
019                                Miscellaneous Farm Products.
0191                               Horticultural specialities.
0192                               Animal specialties.
08                                Forest Products
084                                Gums and Barks, Crude.
08423                              Latex and allied gums (crude natural
                                   rubber).
086                                Miscellaneous Forest Products.
09                                Fresh Fish and Other Marine Products.
091                                Fresh Fish and Other Marine Products.
0912                               Fresh fish and whale products,
                                   including frozen unpackaged fish.
09131                              Shells (oyster, crab, clam, etc.)
10                                Metallic Ores.
101                                Iron Ores.
10112                              Beneficiating-grade ore, crude.
102                                Copper Ores.
103                                Lead and Zinc Ores.
1031                               Lead ores.
1032                               Zinc ores.
104                                Gold and Silver Ores.
105                                Bauxite and Other Aluminum Ores.
106                                Manganese Ores.
107                                Tungsten Ores.
108                                Chromium Ores.
109                                Miscellaneous Metal Ores.
11                                Coal.
111                                Anthracite Coal.
11111                              Raw anthracite (lump).
11112                              Cleaned or prepared anthracite
                                   (crushed, screened, or sized).
112                                Bituminous Coal and Lignite.
1121                               Bituminous coal.
13                                Crude Petroleum, Natural Gas, and
                                   Natural Gasoline.
131                                Crude Petroleum and Natural Gas.
132                                Natural Gasoline.
14                                Nonmetallic Minerals, Except Fuels.
141                                Dimension Stone, quarry.
142                                Crushed and Broken Stone, including
                                   riprap.
14211                              Agricultural limestone.
14219                              Crushed and broken stone, including
                                   riprap, n.e.c.
144                                Sand and Gravel.
14411                              Sand (aggregate and ballast).
14412                              Gravel (aggregate and ballast).
14413                              Industrial sand and gravel.
145                                Clay, Ceramic and Refractory
                                   Minerals.
14511                              Bentonite.
14512                              Fire clay.
14514                              Kaolin and ball clay.
147                                Chemical and Fertilizer Minerals.
14711                              Barite.
14713                              Potash, soda and borate.
14714                              Phosphate rock.
14715                              Rock salt.
14716                              Sulphur.
149                                Miscellaneous Nonmetallic Minerals.
                                   Except Fuels.
14911                              Gypsum and anhydrite.
14913                              Native asphalt and bitumens.
14914                              Pumice and pumicite.
19                                Ordinance and Accessories.
191                                Guns, Howitzers, Mortars, and Related
                                   Equipment, Over 30 mm.
192                                Ammunition, Except for Small Arms
                                   (over 30 mm.).
193                                Full Tracked Combat Vehicles and
                                   Parts.
194                                Sighting and Fire Control Equipment.
195                                Small Arms, 30 mm. and Under.
196                                Small Arms Ammunition, 30 mm. and
                                   Under.
199                                Miscellaneous Ordnance and
                                   Accessories.
20                                Food and Kindred Products.
201                                Meat (Including Poultry and Small
                                   Game): Fresh, Chilled, or Frozen.
2011                               Meat, fresh or chilled, except
                                   salted.
2012                               Meat, fresh-frozen.
2013                               Meat products.
2014                               Animal by-products, inedible.
20141                              Hides, skins, and pelts, not tanned
                                   (cattle, pig, goat, sheep, mule, and
                                   horse).
2015                               Dressed poultry, small game, and
                                   related products, fresh, chilled or
                                   canned.
2016                               Dressed poultry, small game and
                                   related products, fresh-frozen.
202                                Dairy Products.
2021                               Creamery butter.
2023                               Condensed, evaporated milk and dry
                                   milk.
2024                               Ice cream and related frozen
                                   desserts.
2025                               Cheese and other special dairy
                                   products.
2026                               Processed whole milk, skim milk,
                                   cream and other fluid products.
203                                Canned and Preserved Fruits,
                                   Vegetables and Sea Foods.

[[Page 209]]

 
2031                               Canned and cured sea foods.
2032                               Canned specialties.
2033                               Canned fruits and vegetables.
2034                               Dried and dehydrated fruits and
                                   vegetables (except field dried) and
                                   soup mix.
2035                               Pickled fruits and vegetables; sauces
                                   and seasoning; salad dressing.
2036                               Fresh or frozen packaged fish.
2037                               Frozen fruits, fruit juices,
                                   vegetables and specialties.
204                                Grain Mill Products.
2041                               Flour and other grain mill products.
20411                              Wheat flour, except blended and
                                   prepared.
20421                              Prepared feeds for animals and fowls,
                                   except canned.
20423                              Canned feed for animals and poultry.
2043                               Cereal preparations.
2044                               Milled rice, flour and meal.
2045                               Blended and prepared flour.
2046                               Corn starch, sirup, oil, sugar and by-
                                   products (wet process).
20461                              Corn sirup.
20462                              Corn starch.
20463                              Corn sugar.
205                                Bakery Products.
206                                Sugar (beet and cane).
2061                               Sugar mill products and by-products.
20611                              Raw cane and beet sugar.
20616                              Sugar molasses, except blackstrap.
20617                              Blackstrap molasses.
2062                               Sugar, refined: Cane and beet.
20625                              Sugar refining by-products.
20626                              Pulp, molasses, beet.
207                                Confectionery and related products.
208                                Beverages and flavoring extracts.
20821                              Beer, ale, porter, stout: Bottled,
                                   barrels, kegs.
20823                              Malt extract and brewers's spent
                                   grains.
2083                               Malt.
2084                               Wines, brandy, and brandy spirits.
20851                              Distilled, rectified and blended
                                   liquors.
20859                              By-products of liquor distilling.
2086                               Bottled and canned soft drinks and
                                   carbonated and mineral waters.
2087                               Miscellaneous flavoring extracts and
                                   flavoring sirups and compounds except
                                   chocolate syrups.
209                                Miscellaneous Food Preparations and
                                   Kindred Products.
20911                              Cottonseed oil, crude or refined.
20914                              Cottonseed cake, meal and other by-
                                   products.
20921                              Soybean oil, crude or refined.
20923                              Soybean cake, meal, flour, grits, and
                                   other by-products.
2093                               Vegetable and nut oils and by-
                                   products, except cottonseed and
                                   soybean.
2094                               Marine fats and oils.
2095                               Roasted coffee, including instant
                                   coffee.
2096                               Shortening, table oils, margarine and
                                   other edible fats and oils, n.e.c.
2097                               Ice, natural or manufactured.
2098                               Macaroni, spaghetti, vermicelli, and
                                   noodles.
21                                Tobacco Products:
211                                Cigarettes.
212                                Cigars.
213                                Chewing and Smoking Tobacco and
                                   Snuff.
214                                Stemmed and Redried Tobacco.
22                                Basic Textiles:
221                                Cotton Broad Woven Fabrics.
222                                Man-made Fiber and Silk Broad Woven
                                   Fabrics.
223                                Wool Broad Woven Fabrics.
224                                Narrow Fabrics.
225                                Knit Fabrics.
227                                Carpets and Rugs, Textile.
228                                Yarn and Thread.
229                                Miscellaneous Basic Textiles.
2296                               Tire cord and fabrics.
2297                               Wool and mohair (scoured, combed,
                                   carbonized): Tops, noils, nubs, slubs
                                   and grease.
2298                               Cordage and twine.
23                                Apparel and Other Finished Textile
                                   Products Including Knit.
231                                Men's, Youths', and Boys' Clothing.
233                                Women's, Misses', Girls', and
                                   Infants' Clothing.
235                                Millinery, Hats and Caps.
237                                Fur Goods.
238                                Miscellaneous Apparel and
                                   Accessories.
239                                Miscellaneous Fabricated Textile
                                   Products.
24                                Lumber and Wood Products, Except
                                   Furniture.
241                                Primary Forest Products (Pulpwood,
                                   Piling, Posts, Logs, Bolts, etc.).
24114                              Pulpwood logs.
24115                              Pulpwood chips.
24116                              Woodposts, poles and piling.
242                                Lumber and Dimension Stock:
2421                               Lumber and dimension stock:
24212                              Sawed ties (railroads, mine, etc.).
2429                               Miscellaneous sawmill and planing
                                   mill products (shingles, cooperage
                                   stock, etc.).
243                                Millwork, Veneer, Plywood,
                                   Prefabricated Structural Wood
                                   Products.
2431                               Millwood.
2432                               Veneer and plywood.
244                                Wooden Containers.
249                                Miscellaneous Wood Products.
2491                               Creosoted or oil treated wood
                                   products.
25                                Furniture and Fixtures
251                                Household and Office Furniture.
253                                Public Building and Related
                                   Furniture.
254                                Partitions, Shelving, Lockers,
                                   Office, and Store Fixtures.
259                                Miscellaneous Furniture and Fixtures.
26                                Pulp, Paper and Allied Products
261                                Pulp and pulp mill products.
26111                              Pulp.
262                                Paper, except building paper.
26211                              Newsprint.
26216                              Coarse paper, including wrapping
                                   paper.
263                                Paperboard, pulpboard and fiberboard,
                                   except insulating board.
264                                Converted paper and paperboard
                                   products, except containers and
                                   boxes.
2643                               Paper bags.
265                                Containers and boxes, paperboard,
                                   fiberboard and pulpboard.
266                                Building paper and building board.
2661                               Building paper and building board.
26613                              Wallboard.
27                                Printed Matter.
271                                Newspapers.
272                                Periodicals.
273                                Books.
274                                Miscellaneous Printed Matter.
276                                Manifold Business Forms.
277                                Greeting Cards, Seals, Labels, And
                                   Tags.
278                                Blankbooks, Looseleaf Binders and
                                   Devices.
279                                Products of Service Industries for
                                   the Printing Trades.
28                                Chemical and Allied Products
281                                Industrial Inorganic and Organic
                                   Chemicals.
2812                               Sodium, potassium, and other basic
                                   inorganic chemical compounds and
                                   chlorine.
28123                              Sodium compounds, except sodium
                                   alkalies.
2813                               Industrial gases (compressed and
                                   liquefied).
2814                               Crude products from coal tar,
                                   petroleum and natural gas.

[[Page 210]]

 
2816                               Inorganic pigments.
2818                               Miscellaneous industrial organic
                                   chemicals.
28184                              Alcohols.
2819                               Miscellaneous industrial inorganic
                                   chemicals.
28193                              Sulphuric acid.
282                                Plastics Materials and Synthetic
                                   Resins, Synthetic Rubbers and Fibers.
28212                              Synthetic rubber.
28213                              Synthetic organic fibers.
283                                Drugs (Biological Products, Medicinal
                                   Chemicals, Botanical Products and
                                   Pharmaceutical Preparations).
284                                Soap, Detergents, and Cleaning
                                   Preparations, Perfumes, Cosmetics and
                                   Other Toilet Preparations.
2841                               Soap and other detergents, except
                                   specialty cleansers.
285                                Paints, Varnishes, Lacquers, Enamels,
                                   and Allied Products.
286                                Gum and Wood Chemicals.
287                                Agricultural Chemicals.
2871                               Fertilizers.
289                                Miscellaneous Chemical Products.
2892                               Explosives.
28991                              Salt.
29                                Petroleum and Coal Products.
291                                Products of Petroleum Refining.
29111                              Gasoline, jet fuels and other high
                                   volatile petroleum fuels, except
                                   natural gasoline.
29112                              Kerosene.
29113                              Distillate fuel oil.
29114                              Lubricating and similar oils and
                                   derivatives.
29115                              Lubricating greases.
29116                              Asphalt, tar and pitches (petroleum,
                                   cokeoven, coal tar).
29117                              Residual fuel oil and other low
                                   volatile petroleum fuels.
29119                              Products of petroleum refining,
                                   n.e.c.
2912                               Liquefied petroleum gases and coal
                                   gases.
295                                Paving and Roofing Materials.
2951                               Paving mixtures and blocks.
2952                               Asphalt felt and coatings.
299                                Miscellaneous Petroleum and Coal
                                   Products.
29911                              Coke and coal briquettes.
30                                Rubber and Miscellaneous Plastic
                                   Products.
301                                Tires and Inner Tubes.
302                                Rubber Footwear.
303                                Reclaimed Rubber.
306                                Miscellaneous Fabricated Rubber
                                   Products.
307                                Miscellaneous Plastics Products.
31                                Leather and Leather Products.
311                                Leather.
312                                Industrial Leather Belting and
                                   Packing.
313                                Boot and Shoe Cut Stock and Findings,
                                   All Materials.
314                                Footwear, Except Rubber.
315                                Leather Gloves and Mittens.
316                                Luggage, Handbags, and Other Personal
                                   Leather Goods (all materials).
319                                Miscellaneous Leather Goods.
32                                Stone, Clay and Glass Products.
321                                Flat Glass.
322                                Glass and Glassware, Pressed and
                                   Blown.
3221                               Glass containers.
324                                Hydraulic Cement.
32411                              Cement, hydraulic; Portland, natural,
                                   masonry, puzzolan.
325                                Structural Clay Products.
3251                               Brick and structural clay tile.
32511                              Brick, except ceramic glazed and
                                   refractory brick.
3253                               Ceramic wall and floor tile.
3255                               Refractories, clay and nonclay.
3259                               Miscellaneous structural clay
                                   products.
32594                              Roofing tile.
326                                Pottery and Related Products.
327                                Concrete, Gypsum, and Plaster
                                   Products.
3271                               Concrete products.
3274                               Lime.
3275                               Gypsum products.
328                                Cut Stone and Stone Products.
329                                Abrasives, Asbestos, and
                                   Miscellaneous Nonmetallic Mineral
                                   Products.
3291                               Abrasive products.
33                                Primary Metal Products.
331                                Steel Works and Rolling Mill
                                   Products.
33111                              Pig iron.
33112                              Slag.
33113                              Coke, screenings and breeze.
33119                              Coke oven and blast furnace products,
                                   n.e.c.
3312                               Primary iron and steel products,
                                   except coke oven by-products.
33121                              Steel ingot and semi-finished shapes.
3313                               Ferro-alloys.
3315                               Steel wire, nails, and spikes.
332                                Iron and Steel Castings.
33211                              Iron and steel cast pipe and
                                   fittings.
333                                Nonferrous Metals Primary Smelter
                                   Products (Slab, Ingot, Pig, etc., and
                                   Residues).
3331                               Primary copper and copper base alloys
                                   smelter products.
3332                               Primary lead and lead base alloys
                                   smelter products.
3333                               Primary zinc and zinc base alloys
                                   smelter products.
3334                               Primary aluminum and aluminum base
                                   alloys smelter products.
335                                Nonferrous Metal Basic Shapes.
3351                               Copper, brass or bronze and other
                                   copper base alloy basic shapes.
3352                               Aluminum and aluminum base alloy
                                   basic shapes except aluminum foil.
3357                               Nonferrous wire, including insulated
                                   wire.
336                                Nonferrous and Nonferrous Base Alloy
                                   Castings.
3361                               Aluminum and aluminum base alloy
                                   castings.
2262                               Brass, bronze, copper, and copper
                                   base alloy castings.
339                                Miscellaneous Primary Metal Products.
3391                               Iron and steel forgings.
3392                               Nonferrous forgings.
34                                Fabricated Metal Products, Except
                                   Ordnance, Machinery, and
                                   Transportation Equipment.
341                                Metal Cans.
342                                Cutlery, Hand Tools, and General
                                   Hardware.
343                                Plumbing Fixtures and Heating
                                   Apparatus, Except Electric.
3433                               Heating equipment, except electric.
344                                Fabricated structural metal products.
3441                               Fabricated structural metal products.
345                                Bolts, Nuts, Screws, Rivets, Washers,
                                   and Other Industrial Fasteners.
346                                Metal Stampings.
348                                Miscellaneous Fabricated Wire
                                   Products.
349                                Miscellaneous Fabricated Metal
                                   Products.
3491                               Metal barrels, drums, kegs, and
                                   pails.
3494                               Valves and pipe fittings (except
                                   plumbers' brass goods and fittings),
                                   fabricated pipe and fabricated pipe
                                   fittings.
35                                Machinery, Except Electrical.
351                                Engines and Turbines.
352                                Farm Machinery and Equipment.
353                                Construction, Mining and Materials
                                   Handling Equipment.
3531                               Construction machinery and equipment.
3532                               Mining machinery and equipment,
                                   except oil field machinery and
                                   equipment.

[[Page 211]]

 
3533                               Oil field machinery and equipment.
3537                               Industrial trucks, tractors,
                                   trailers, and stackers.
354                                Metalworking Machinery and Equipment.
355                                Special Industry Machinery, Except
                                   Metalworking Machinery.
356                                General Industrial Machinery and
                                   Equipment.
357                                Office, Computing, and Accounting
                                   Machines.
358                                Service Industry Machines.
359                                Miscellaneous Machinery and Parts,
                                   Except Electrical.
36                                Electrical Machinery, Equipment and
                                   Supplies.
361                                Electrical Transmission and
                                   Distribution Equipment.
362                                Electrical Industrial Apparatus.
363                                Household Appliances.
3631                               Household cooking equipment, all
                                   types.
3632                               Household refrigerators and home and
                                   farm freezers.
3633                               Household laundry equipment.
364                                Electric Lighting and Wiring
                                   Equipment.
365                                Radio and TV Receiving Sets, Except
                                   Communication Types.
366                                Communication Equipment.
367                                Electronic Components and
                                   Accessories.
369                                Miscellaneous Electrical Machinery,
                                   Equipment, and Supplies.
37                                Transportation Equipment.
371                                Motor Vehicles and Motor Vehicle
                                   Equipment.
3711                               Motor vehicles.
37111                              Passenger cars, assembled.
37112                              Truck tractors, and trucks,
                                   assembled.
37113                              Motor coaches, assembled (including
                                   trolley busses) and fire department
                                   vehicles.
3712                               Passenger car bodies and body parts.
3713                               Truck and bus bodies and body parts.
3714                               Motor vehicle parts and accessories.
3715                               Truck trailers.
372                                Aircraft and Parts.
373                                Ships and Boats.
374                                Railroad Equipment.
375                                Motorcycles, Bicycles, and Parts.
379                                Miscellaneous Transportation
                                   Equipment.
38                                Instruments, Photographic and Optical
                                   Goods, Watches and Clocks.
381                                Engineering, Laboratory, and
                                   Scientific Instruments.
382                                Measuring, Controlling, and
                                   Indicating Instruments.
383                                Optical Instruments and Lenses.
384                                Surgical, Medical, and Dental
                                   Instruments and Supplies.
385                                Ophthalmic or Opticians' Goods.
386                                Photographic Equipment and Supplies.
387                                Watches, Clocks, Clockwork Operated
                                   Devices, and Parts.
39                                Miscellaneous Products of
                                   Manufacturing.
391                                Jewelry, Silverware, and Plated Ware.
393                                Musical Instruments and Parts.
394                                Toys, Amusement, Sporting and
                                   Athletic Goods.
3949                               Sporting and athletic goods.
395                                Pens, Pencils, and Other Office and
                                   Artists' Materials.
396                                Costume Jewelry, Novelties, Buttons,
                                   and Notions.
398                                Miscellaneous Manufactured Products--
                                   A.
399                                Miscellaneous Manufactured Products--
                                   B.
40                                Waste and Scrap Materials.
401                                Ashes.
402                                Waste and Scrap, Except Ashes.
4021                               Metal scrap, waste and tailings.
40211                              Iron and steel scrap, wastes and
                                   tailings.
4022                               Textile waste, scrap and sweepings.
4024                               Paper waste and scrap.
4026                               Rubber and plastic scrap and waste.
41                                Misc. Freight Shipments.
411                                Misc. Freight Shipments.
41111                              Outfits or kits.
41114                              Articles, used except for repair,
                                   reconditioning (41115), returned
                                   empty (421), remelting 4021).
41115                              Articles, used, returned for repair,
                                   incl. for reconditioning.
412                                Miscellaneous Commodities Not Taken
                                   in Regular Freight Service.
42                                Containers, Shipping, Returned Empty.
421                                Containers, Shipping, Returned Empty
                                   Inc. Carriers or Devices.
422                                Trailers, Semi-Trailers, Returned
                                   Empty.
44                                Freight Forwarder Traffic.
441                                Freight Forwarder Traffic, Carload or
                                   Truckload.
45                                Shipper Association or Similar
                                   Traffic.
451                                Shipper Association or Similar
                                   Traffic, Carload or Truckload.
46                                Miscellaneous Mixed Shipments Exc.
                                   Forwarder See 44 Shipper Association
                                   See 45.
461                                All Freight Rate Shipments, N.E.C.,
                                   Inc. TOFC.
462                                Mixed Shipments on One Factor Rates
                                   Cnstg. of Commodities Representing
                                   Two or More Major Industry Groups
                                   Where it is Impossible to Determine
                                   the Predominant Industry.
47                                Small Packaged Freight Shipments.
471                                Small Packaged Freight Shipments,
                                   Including LCL or LTL.
------------------------------------------------------------------------


[32 FR 20466, Dec. 20, 1967. Redesignated at 46 FR 9116, Jan. 28, 1981, 
and 46 FR 10745, Feb. 4, 1981]

                       PARTS 1250	1252 [RESERVED]



PART 1253_RATE-MAKING ORGANIZATION; RECORDS AND REPORTS--Table of Contents



Sec.
1253.10 Accounts.
1253.20 Other records.
1253.30 Retention of records.

    Authority: 49 U.S.C. 721, 10706, 13703, 11144, and 11145.
    Note: The report forms prescribed by part 1253 are available upon 
request from the Office of Economics, Environmental Analysis, and 
Administration, Surface Transportation Board, Washington, DC 20423-0001.



Sec.  1253.10  Accounts.

    Accounts shall be kept by each conference, bureau, committee, or 
other organization subject to sections 5a or 5b to record all receipts 
and expenditures of moneys. Such accounts shall be kept with sufficient 
particularity to show the facts pertaining to all transactions reflected 
in the entries made in the accounts. All receipts shall be supported by 
records, including records

[[Page 212]]

showing the basis for charges to members. All disbursements shall be 
supported by vouchers, payrolls, canceled checks, and other evidences of 
expenditures, including the basis for any apportionment of expense items 
to members.

[32 FR 20474, Dec. 20, 1967]



Sec.  1253.20  Other records.

    Each such organization subject to sections 5a or 5b shall maintain:
    (a)(1) A file for each proposal relating to rates, fares, 
classifications, divisions, allowances, or charges (including charges 
between carriers and compensation paid or received for the use of 
facilities and equipment), or rules and regulations pertaining thereto, 
which shall contain the complete proposal, all procedural documents 
issued, protests, memoranda, amendments, reports, etc., submitted and 
any other correspondence respecting the matter proposed. Also reports or 
minutes of all proceedings at any oral, committee or public hearing held 
thereon and the determination relating thereto;
    (2) a file covering each petition or protest filed by the 
organization against tariff publications of a member for suspension of 
rates or other matters published for such member carrier;
    (3) a file covering each instruction or request for publication by 
independent action.
    (b) All accounts and other records covered by this part shall be 
filed in such manner as to be readily accessible for examination by 
representatives of the Board.
    (c) All rate bureaus are required to:
    (1) Advise the Board of any change in legal address by notifying the 
Chief, Section of Administration, Office of Proceedings; and
    (2) Submit information to the Board when requested.

(49 U.S.C. 10706, 11145; 5 U.S.C. 553)

[32 FR 20474, Dec. 20, 1967, as amended at 47 FR 37904, Aug. 27, 1982; 
74 FR 52912, Oct. 15, 2009]



Sec.  1253.30  Retention of records.

    Each organization subject to sections 5a or 5b shall retain records 
or documents relating to its transactions or activities in accordance 
with part 1220, Preservation of Records, of this chapter.

[40 FR 50389, Oct. 29, 1975]



PARTS 1260	1269_VALUATION--Table of Contents



    Note: The report forms prescribed by parts 1260-1269 are available 
upon request from the Office of Economics, Environmental Analysis, and 
Administration, Surface Transportation Board, Washington, DC 20423-0001.

                       PARTS 1260	1261 [RESERVED]

PARTS 1280	1299_CLASSIFICATION AND DECLASSIFICATION OF NATIONAL SECURITY 
                        INFORMATION AND MATERIAL



PART 1280_HANDLING OF NATIONAL SECURITY INFORMATION AND CLASSIFIED MATERIAL--Table of Contents



Sec.
1280.1 Purpose.
1280.2 Policy.
1280.3 Authority to classify.
1280.4 Responsibility for handling of classified documents.
1280.5 Safeguarding of classified material.
1280.6 Storage of classified documents.
1280.7 Education of employees.
1280.8 Requests for mandatory review.

    Authority: E.O. 12356.

    Source: 49 FR 7832, Mar. 2, 1984, unless otherwise noted.



Sec.  1280.1  Purpose.

    To set forth those provisions of the Surface Transportation Board 
Security Regulations to the extent that they affect the general public.



Sec.  1280.2  Policy.

    It is the policy of the Surface Transportation Board to act in 
accordance with Executive Order 12356, dated April 6, 1982, in matters 
relating to national security information.



Sec.  1280.3  Authority to classify.

    The Board does not have authority of its own to classify any of its 
internally generated documents. The only documents handled by the Board 
which are classified as confidential, secret, or top

[[Page 213]]

secret are those generated by Executive Branch Agencies with original 
classification authority.



Sec.  1280.4  Responsibility for handling of classified documents.

    (a) Responsible Official. Primary responsibility for the handling of 
classified documents shall rest with the Assistant to the Director of 
the Office of Compliance and Consumer Assistance, who is also Emergency 
Coordinator for the Board. All documents bearing the terms ``Top 
Secret,'' ``Secret,'' and ``Confidential'' shall be delivered to the 
Emergency Coordinator or his/her alternate immediately upon receipt. The 
alternate is also an Assistant to the Director of the Office of 
Compliance and Consumer Assistance as set forth in Sec.  1280.4(b) of 
the rules. All potential recipients of such documents shall be advised 
of the name of the Emergency Coordinator. In the event that the 
Emergency Coordinator or his/her alternate is not available to receive 
such documents, they shall be turned over to the Associate Director, 
Office of Compliance and Consumer Assistance, and secured, unopened, in 
the combination safe located in Room 5325 of the headquarters building 
until the Emergency Coordinator or alternate is available. All material 
not immediately deliverable to either the Emergency Coordinator, 
alternate, or the Associate Director, Office of Compliance and Consumer 
Assistance, shall be delivered at the earliest opportunity. Under no 
circumstances shall classified material that cannot be delivered to the 
Emergency Coordinator be stored other than in the designated safe in 
Room 5325 of the STB headquarters building.
    (b) The alternate to the Emergency Coordinator for the receipt and 
handling of documents mentioned in paragraph (a) of this section, shall 
be the other Assistant to the Director, Office of Compliance and 
Consumer Assistance.
    (c) Any person whose position requires access to classified 
information must execute Form SF 189.
    (d) Any contracts with media representatives by personnel with 
access to classified material and involving such material will be 
cleared through the Emergency Coordinator and more than one person shall 
be present during any briefing or interview.



Sec.  1280.5  Safeguarding of classified material.

    (a) Reproduction of classified material shall take place only when 
absolutely necessary, and in accordance with section 2001.46 of the 
Directive. Should copies be made, they are subject to the same controls 
as the original document. Records showing the number and distribution of 
copies shall be maintained by the Emergency Coordinator and the log 
stored with the original documents.
    (b) Any suspected or actual unauthorized disclosures of classified 
information shall be reported to the Emergency Coordinator or Alternate. 
An immediate investigation will be undertaken by the Emergency 
Coordinator or Alternate to establish all facts surrounding the 
disclosure. The Emergency Coordinator or Alternate shall ascertain the 
nature of the information disclosed and the extent to which it has been 
disseminated and will maintain records of disclosures as evaluated and 
investigated.
    (c) Any suspected or actual unauthorized disclosure of classified 
information will be reported as soon as possible to the Department of 
Justice and the Information Security Oversight Office.
    (d) Any unauthorized disclosure of classified information or any 
failure to cooperate with the investigation of unauthorized disclosures 
by an employee shall be cause for appropriate disciplinary or other 
remedial action as provided in the Board's Canons of Conduct, 49 CFR 
1000.735-31.

[49 FR 7832, Mar. 2, 1984, as amended at 54 FR 38998, Sept. 22, 1989]



Sec.  1280.6  Storage of classified documents.

    All classified documents shall be stored in the safe located in Room 
5325 of the STB headquarters building. In those instances where the 
Emergency Coordinator is not available to receive classified documents, 
they may be stored, unopened, in the safe located in Room 5325.

[[Page 214]]



Sec.  1280.7  Education of employees.

    All employees who have been granted a security clearance and who 
have occasion to handle classified materials shall be advised of the 
procedures outlined in 49 CFR part 1280. They shall also be required to 
review Executive Order 12356 and appropriate directives of the 
Information Security Oversight Office (ISOO). This shall be achieved by 
a memorandum to all affected employees at the time these procedures are 
implemented, and by appropriate instructions to new employees receiving 
security clearances in the future.



Sec.  1280.8  Requests for mandatory review.

    Because the Board does not itself generate classified documents, any 
requests made for mandatory review shall be coordinated by the Emergency 
Coordinator with appropriate officials of the Department or Agency 
responsible for issuance of the document involved.

                       PARTS 1281	1299 [RESERVED]

[[Page 215]]



              SUBCHAPTER D_CARRIER RATES AND SERVICE TERMS





PART 1300_DISCLOSURE, PUBLICATION, AND NOTICE OF CHANGE OF RATES AND OTHER SERVICE TERMS FOR RAIL COMMON CARRIAGE--Table of Contents



Sec.
1300.1 Scope; definitions.
1300.2 Disclosure requirement for existing rates.
1300.3 Response to request for establishment of a new rate.
1300.4 Notice requirement.
1300.5 Additional publication requirement for agricultural products and 
          fertilizer.

    Authority: 49 U.S.C. 721(a) and 11101(f).

    Source: 61 FR 35140, July 5, 1996, unless otherwise noted.



Sec.  1300.1  Scope; definitions.

    (a) The provisions of this part address the requirements imposed on 
rail carriers by 49 U.S.C. 11101(b), 11101(c), 11101(d) and 11101(f).
    (b) Except as otherwise provided in this section, the provisions of 
this part apply to any common carriage transportation or service 
provided by a rail carrier subject to the jurisdiction of the Surface 
Transportation Board under 49 U.S.C. 10501.
    (c) The provisions of this part do not apply to any transportation 
or service provided by a rail carrier under a contract authorized under 
49 U.S.C. 10709 or former 49 U.S.C. 10713 (repealed effective January 1, 
1996).
    (d) The provisions of this part do not apply to any transportation 
or service provided by a rail carrier to the extent that such 
transportation or service is exempted from rate notice and disclosure 
requirements pursuant to an exemption issued under 49 U.S.C. 10502 or 
former 49 U.S.C. 10505 (repealed effective January 1, 1996).
    (e) For the purposes of this part, ``service terms'' means all 
classifications, rules, and practices that affect the rates, charges, or 
level of service for rail transportation.



Sec.  1300.2  Disclosure requirement for existing rates.

    (a) A rail carrier must disclose to any person, upon formal request, 
the specific rate(s) requested (or the basis for calculating the 
specific rate(s)), as well as all charges and service terms that may be 
applicable to transportation covered by the rate(s). For purposes of 
Sec.  1300.4(a)(1) of this part, a formal request under this part is one 
that clearly notifies the railroad that the requester seeks not only 
immediate information but also notification of any future increases in 
the rate(s) involved or changes in pertinent service terms.
    (b) The information provided by a rail carrier under this section 
must be provided immediately. (It is expected that the response will be 
sent within hours, or at least by the next business day, in most 
situations.) Such information may be provided either in written or 
electronic form as agreed to by the parties. If the parties cannot 
agree, such information is to be provided in electronic (non-passive) 
form where both parties have the requisite capabilities; otherwise, it 
is to be provided in writing.
    (c) A rail carrier may, at its option, require that all requests 
submitted under this section be in written or electronic form, although 
the carrier may permit oral requests.



Sec.  1300.3  Response to request for establishment of a new rate.

    Where a shipper or a prospective shipper or person acting on behalf 
of a shipper or a prospective shipper requests that the carrier 
establish a rate in the absence of an existing rate for particular 
transportation, the carrier must promptly establish and provide to the 
requester a rate and applicable service terms. The information may be 
provided either in written or electronic form, as agreed to by the 
parties. If the parties cannot agree, such information is to be provided 
in electronic (non-passive) form where both parties have the requisite 
capabilities; otherwise, it is to be provided in writing. The response

[[Page 216]]

should be provided as soon as reasonably possible, but no later than 10 
business days from receipt of the request. If a carrier determines that 
additional information is required from the requester before a rate or 
term can be established, the carrier must so notify the requester as 
soon as possible, but no later than 10 business days after receipt of 
the request. Once the additional information is received, the carrier 
must set the rate and related service terms, and relay them to the 
requester, as soon as reasonably possible, but no later than 10 business 
days from the receipt of the additional information. (However, the 
parties may agree to a different time period, in which case these time 
periods would not apply.) A rail carrier may, at its option, require 
that requests submitted under this section be in written or electronic 
form, although the carrier may permit oral requests.



Sec.  1300.4  Notice requirement.

    (a) A rail carrier may not increase any rates or charges, or change 
any service terms (except for changes that are equivalent to rate 
reductions), unless 20 days have expired after written or electronic 
notice has been provided to all persons who, within the previous 12 
months:
    (1) Have formally requested under ;Sec.  1300.2 or Sec.  1300.3 of 
this part the affected rates or service terms; or
    (2) Have made arrangements with the carrier for a future shipment 
that would be subject to the increased rates or changed service terms.
    (b) The notice required by this section may be in written or 
electronic form, as agreed to by the parties. If the parties cannot 
agree, the information is to be provided in electronic (non-passive) 
form where both parties have the requisite capabilities; otherwise, it 
is to be provided in writing.
    (c) For purposes of this section, a mailed notice is deemed 
``provided'' on the date such notice is postmarked.
    (d) The notice required by this section must clearly identify the 
increases in rates or charges or the changes in service terms.



Sec.  1300.5  Additional publication requirement for agricultural products and fertilizer.

    (a) With respect to transportation of agricultural products 
(including grain, as defined in 7 U.S.C. 75, and all products thereof) 
and fertilizer, a rail carrier shall publish, make available, and retain 
for public inspection its currently effective rates, schedules of rates, 
charges, and other service terms, and any scheduled changes to such 
rates, charges, and service terms. This requirement is in addition to 
the requirements imposed by Sec. Sec.  1300.2, 1300.3, and 1300.4 of 
this part.
    (b) The information published under this section must include an 
accurate description of the services offered to the public; must provide 
the specific applicable rates (or the basis for calculating the specific 
applicable rates), charges, and service terms; and must be arranged in a 
way that allows for the determination of the exact rate, charges, and 
service terms applicable to any given shipment (or to any given group of 
shipments). Increases, reductions and other changes must be symbolized 
or highlighted in some way to facilitate ready identification of the 
changes, the nature of those changes and their effective dates.
    (c) A rail carrier must make the information available at offices 
where it normally keeps rate information. Access to the information at 
such offices must be provided to any person, without charge, during 
normal business hours.
    (d) A rail carrier must also make the required publications 
available to all persons (hereinafter referred to as subscribers) who 
have subscribed to a publication service operated either by the rail 
carrier itself or by an agent acting at the rail carrier's direction. 
Such publications may be made available either in printed or in 
electronic form as agreed to by the parties. Any scheduled changes must 
be published in a manner that provides timely notice to subscribers. A 
rail carrier may impose reasonable charges for such publications. 
Publications may be limited to the specific information requested by the 
subscriber, and charges for such limited publications should be set 
accordingly.

[[Page 217]]

                          PART 1301 [RESERVED]



PART 1302_EXPORT AND IMPORT SHIPMENTS; RAILROADS--Table of Contents



 Charges for Rail Transportation When Water Transportation Performed in 
         Vessels Not Documented Under Laws of the United States

Sec.
1302.41 Suspension of statute.
1302.42 Further suspension of statute.
1302.43 Applicable rates on shipments in transit when statute becomes 
          effective.

    Authority: 49 U.S.C. 884.

    Source: 32 FR 20541, Dec. 20, 1967, unless otherwise noted.

    Cross References: For United States Customs Service, Department of 
the Treasury; see Customs Duties, 19 CFR Chapter I. For Foreign-Trade 
Zones Board; see Commerce, 15 CFR Chapter IV. For regulations of 
International Trade Administration concerning foreign trade statistics; 
see Commerce, 15 CFR Chapter III.

 Charges for Rail Transportation When Water Transportation Performed in 
         Vessels Not Documented Under Laws of the United States



Sec.  1302.41  Suspension of statute.

    The provisions of section 28 of the Merchant Marine Act, 1920, are 
hereby further suspended from and including the first day of January, 
1921, until further order of this Board.



Sec.  1302.42  Further suspension of statute.

    (a) Order of March 11, 1924, as modified, which terminated order of 
June 14, 1920, as modified, suspending provisions of section 28 of the 
Merchant Marine Act, 1920, until further order of the Board, is hereby 
vacated and set aside.
    (b) The provisions of said order of June 14, 1920, as modified by 
the supplemental orders of July 27, 1920, December 11, 1920, and 
February 7, 1921, specified in paragraph (a) of this section, shall 
continue in force until further order of the Board.



Sec.  1302.43  Applicable rates on shipments in transit when statute becomes effective.

    The following conditions are hereby prescribed as supplemental to 
the orders aforesaid suspending the provisions of section 28 of the 
Merchant Marine Act, that is to say, that notwithstanding the provisions 
of the aforesaid section 28 may become effective during the time when 
export or import shipments are in transit to or from the ports of export 
or import the following conditions shall be observed.
    (a) With respect to all export shipments delivered to and receipted 
for by common carriers subject to the provisions of section 6 of the 
Interstate Commerce Act (section 6, 24 Stat. 380, as amended; 49 U.S.C. 
6(13)) the rates to the ports in force and applicable upon said 
shipments via the lines of said carriers upon the date of delivery to 
and receipt by such carriers shall be applied to said shipments; and,
    (b) With respect to all import shipments delivered to and receipted 
for by common carriers subject to the provisions of section 6 of the 
Interstate Commerce Act (49 U.S.C. 6 (13)) the rates from the ports in 
force and applicable to said shipments over the lines of said carriers 
upon the date of delivery to and receipt by such carriers shall be 
applied to said shipments.



PART 1305_DISCLOSURE AND NOTICE OF CHANGE OF RATES AND OTHER SERVICE TERMS FOR PIPELINE COMMON CARRIAGE--Table of Contents



Sec.
1305.1 Scope; definitions.
1305.2 Disclosure requirement for existing rates.
1305.3 Response to request for establishment of a new rate.
1305.4 Notice requirement.

    Authority: 49 U.S.C. 721(a) and 15701(e).

    Source: 61 FR 35141, July 5, 1996, unless otherwise noted.



Sec.  1305.1  Scope; definitions.

    (a) The provisions of this part address the requirements imposed on 
pipeline carriers by 49 U.S.C. 15701(b) and 15701(c). Such requirements 
apply to pipeline carriers only with respect to the transportation of 
commodities other than water, gas, or oil.

[[Page 218]]

    (b) Except as otherwise provided in paragraph (c) of this section, 
the provisions of this part apply to any transportation or service 
provided by a pipeline carrier subject to the jurisdiction of the 
Surface Transportation Board under 49 U.S.C. 15301.
    (c) The provisions of this part do not apply to any transportation 
or service provided by a pipeline carrier to the extent that such 
transportation or service is exempted from rate notice and disclosure 
requirements pursuant to 49 U.S.C. 15302.
    (d) For the purposes of this part, service terms means all 
classifications, rules, and practices that affect the rates, charges, or 
level of service for pipeline transportation.



Sec.  1305.2  Disclosure requirement for existing rates.

    (a) A pipeline carrier must disclose to any person, on request, the 
specific rate(s) requested (or the basis for calculating the specific 
rate(s)), as well as all charges and service terms that may be 
applicable to transportation covered by those rate(s).
    (b) The information provided by a pipeline carrier under this 
section must be provided immediately. (It is expected that the response 
will be sent within hours, or at the latest by the next business day, in 
most situations.) Such information may be provided either in writing or 
in electronic form, as agreed to by the parties. If the parties cannot 
agree, such information is to be provided in electronic form where both 
parties have the requisite capabilities; otherwise, it is to be provided 
in writing.
    (c) A pipeline carrier may, at its option, require that all requests 
submitted under this section be in writing or electronic form, or the 
carrier may permit oral requests.



Sec.  1305.3  Response to request for establishment of a new rate.

    Where a shipper or a prospective shipper, or a person acting on 
behalf of a shipper or a prospective shipper, requests that the carrier 
establish a rate in the absence of an existing rate for particular 
transportation, the carrier must promptly establish and provide to the 
requester a rate and applicable service terms. The information may be 
provided either in writing or in electronic form, as agreed to by the 
parties. If the parties cannot agree, such information is to be provided 
in electronic form where both parties have the requisite capabilities; 
otherwise, it is to be provided in writing. The response should be 
provided as soon as reasonably possible, but no later than 10 business 
days from receipt of the request. If a carrier determines that 
additional information is required from the requester before a rate or 
term can be established, the carrier must so notify the requester as 
soon as possible, but no later than 10 business days after receipt of 
the request. Once the additional information is received, the carrier 
must set the rate and related service terms, and relay them to the 
requester, as soon as possible, but no later than 10 business days. The 
time period for response set forth in this section will not apply when 
the parties agree to a different time period. A pipeline carrier may, at 
its option, require that requests submitted under this section be in 
writing or electronic form, or the carrier may permit oral requests.



Sec.  1305.4  Notice requirement.

    (a) A pipeline carrier may not increase any rates or charges, or 
change any service terms (except for changes that are equivalent to rate 
reductions) unless 20 days have expired after written or electronic 
notice has been provided to all persons who, within the previous 12 
months:
    (1) Have requested, under Sec.  1305.2 or Sec.  1305.3, the affected 
rates or service terms; or
    (2) Have made arrangements with the carrier for a shipment that 
would be subject to the increased rates or changed service terms.
    (b) The notice required by this section may be provided either in 
writing or in electronic form, as agreed to by the parties. If the 
parties cannot agree, the information is to be provided in electronic 
form where both parties have the requisite capabilities; otherwise, it 
is to be provided in writing.
    (c) For purposes of this section, a mailed notice is deemed 
``provided'' on the date such notice is postmarked.

[[Page 219]]

    (d) The notice required by this section must clearly identify the 
increase in rates or charges or the change in service terms.



PART 1310_TARIFF REQUIREMENTS FOR HOUSEHOLD GOODS CARRIERS--Table of Contents



Sec.
1310.1 Scope; definitions.
1310.2 Requirement to maintain tariffs.
1310.3 Contents of tariffs.
1310.4 Incorporation of tariff provisions by reference.
1310.5 Availability of tariffs at carrier offices.
1310.6 Furnishing copies of tariff publications.

    Authority: 49 U.S.C. 721(a), 13702(a), 13702(c) and 13702(d).

    Source: 62 FR 5171, Feb. 4, 1997, unless otherwise noted.



Sec.  1310.1  Scope; definitions.

    (a) The provisions of this part address the tariff requirements 
imposed by 49 U.S.C. 13702 on motor carriers and freight forwarders for 
the transportation of household goods, and the notice requirements with 
which such carriers must comply in order to be entitled to enforce the 
provisions of their tariffs against individuals whose shipments are 
subject to such tariffs.
    (b) The provisions of this part apply to all movements of household 
goods defined in paragraph (c)(1) of this section, and to those 
movements of household goods defined in paragraph (c)(2) of this section 
that are not provided under contracts entered into pursuant to 49 U.S.C. 
14101(b) or former 49 U.S.C. 10702 (repealed January 1, 1996).
    (c) For the purposes of this part, the term household goods means 
personal effects and property used or to be used in a dwelling, when a 
part of the equipment or supply of such dwelling, and similar property 
if the transportation of such effects or property is:
    (1) Arranged and paid for by the householder, including 
transportation of property from a factory or store when the property is 
purchased by the householder with intent to use in his or her dwelling; 
or
    (2) Arranged and paid for by another party.
    (d) For the purposes of this part service terms means all 
classifications, rules, regulations and practices that affect the rates, 
charges, or level of service for movements of household goods.



Sec.  1310.2  Requirement to maintain tariffs.

    (a) Except when providing transportation for charitable purposes 
without charge, carriers subject to the Board's jurisdiction under 
Chapter 135 of Title 49 of the United States Code may provide 
transportation or service for movements of household goods only if the 
rates, and related rules and practices, for such transportation or 
service are contained in a published tariff that is in effect under this 
section. The carrier may not charge or receive a different compensation 
for the transportation or service than the rate specified in the tariff, 
whether by returning a part of that rate to a person, by giving a person 
a privilege, by allowing the use of a facility that affects the value of 
that transportation or service, or through another device. Tariffs shall 
be published in the English language and rates shall be stated in money 
of the United States.
    (b) Tariffs maintained pursuant to this part must be available for 
inspection by the Board, and must be provided to the Board promptly and 
free of charge, upon request, by mail or other delivery service.
    (c) A carrier that maintains a tariff pursuant to this part may not 
enforce the provisions of the tariff unless the carrier has given notice 
that the tariff is available for inspection in its bill of lading or by 
other actual notice to individuals whose shipments are subject to the 
tariff, as provided in Sec.  1310.4 of this part.
    (d) The Board may invalidate a tariff prepared by or on behalf of a 
carrier under this part if that tariff violates 49 U.S.C. 13702 or the 
regulations contained in this part.



Sec.  1310.3  Contents of tariffs.

    (a) Tariffs prepared under this part must include an accurate 
description of the services offered to the public; must provide the 
specific applicable rates, charges and service terms; and must be

[[Page 220]]

arranged in a way that allows for the determination of the exact rate, 
charges and service terms applicable to any given shipment. Increases, 
reductions and other changes must be symbolized or highlighted in some 
way to facilitate ready identification of the changes and their 
effective dates.
    (b) All information necessary to determine applicable rates, charges 
and service terms for a given shipment need not be contained in a single 
tariff, but if multiple tariffs are used to convey that information, the 
tariff containing the rates must make specific reference to all other 
tariffs required to determine applicable rates, charges and service 
terms. The carrier(s) party to the rate(s) must participate in all of 
the tariffs so linked and all such tariffs must be made available to 
shippers upon reasonable request.



Sec.  1310.4  Incorporation of tariff provisions by reference.

    (a) Carriers that maintain tariffs pursuant to this part may 
incorporate the terms of such tariffs by reference (i.e., without 
stating their full text) into the bill of lading or other document 
embodying the contract of carriage for the transportation of household 
goods, provided that:
    (1) The bill of lading or other document must contain a conspicuous 
notice that the contract of carriage incorporates the terms of the 
carrier's tariffs; the carrier must give notice that its tariffs are 
available for inspection in its bill of lading or by other actual notice 
to individuals whose shipments are subject to such tariffs; and the 
carrier must make the full text of incorporated terms readily available 
for inspection by the shipper, free of charge, upon request. If such 
terms cannot be made available immediately, they must be made available 
promptly and free of charge by mail or other delivery service.
    (2) If the incorporated terms include any of the terms set forth in 
paragraphs (a)(2)(i) through (a)(2)(iii) of this section, the notice on 
the bill of lading or other document must indicate that such terms are 
included; the shipper must be provided with a brief summary of the 
principal features of such terms on or with the document; and the 
shipper must be able to obtain a more complete explanation of such terms 
upon request.
    (i) Limits on the carrier's liability for loss, damage, or delay of 
goods, including fragile or valuable goods.
    (ii) Claim restrictions, including time periods within which 
shippers or consignees must file a claim or bring an action against the 
carrier for its acts or omissions or those of its agents.
    (iii) Rights of the carrier to impose monetary penalties on shippers 
or consignees, increase the price of the transportation, or change any 
terms of the contract.
    (b) A carrier may not claim the benefit as against a shipper or 
consignee of, and a shipper or consignee shall not be bound by, any 
tariff term that is incorporated by reference under this section unless 
the carrier has complied with the requirements of paragraph (a) of this 
section.
    (c) The disclosure requirements established by this section preempt 
any State requirements on the same subject, for tariff terms that are 
incorporated by reference into the bill of lading or other document 
embodying the contract of carriage for the transportation of household 
goods.



Sec.  1310.5  Availability of tariffs at carrier offices.

    (a) Each carrier shall maintain, at its principal office, a complete 
set of its effective tariffs and those to which it is a party.
    (b) Each carrier shall also maintain some or all of its tariffs at 
its other business offices, upon request. Carriers shall provide 
information regarding all locations where tariffs may be viewed.
    (c) At all points where tariffs are maintained, they shall be made 
available for inspection by any person during the carrier's normal 
business hours. The tariffs shall be accessible and readable. The 
carrier shall also display, in a conspicuous place in those locations, a 
notice, in large print, which contains a statement that the tariffs are 
available for public inspection.
    (d) At all other carrier business offices, the carrier shall display 
a notice advising the public of the location of the nearest available 
tariff. The notice

[[Page 221]]

shall be in large print and posted in a conspicuous place. In addition, 
the carrier shall, upon request, make its tariffs available at that 
location as soon as possible but not later than within 20 days, or 
provide the sought information orally if satisfactory to the requestor.
    (e) Any publication referred to in a tariff must be maintained with 
that tariff.
    (f) If any tariff maintained pursuant to paragraph (b) of this 
section has not been used for a substantial length of time, the 
availability of that tariff, including its reissues, may be discontinued 
at that office until such time as it is again requested. It shall then 
be made available within 20 days.



Sec.  1310.6  Furnishing copies of tariff publications.

    (a) Copies of tariffs, specific tariff provisions or tariff 
subscriptions shall be provided upon request to any interested person.
    (b) Except for providing to shippers the full text of tariff terms 
incorporated by reference into the bill of lading or other document 
embodying the contract of carriage for the transportation of household 
goods, as described in Sec.  1310.4(a)(1), carriers may assess charges 
for furnishing copies of tariff publications to interested persons. If a 
charge is made, the charge must be reasonable, and identical for the 
same publications and delivery service.



PART 1312_REGULATIONS FOR THE PUBLICATION, POSTING AND FILING OF TARIFFS FOR THE TRANSPORTATION OF PROPERTY BY OR WITH A WATER CARRIER IN NONCONTIGUOUS DOMESTIC 
TRADE--Table of Contents



Sec.
1312.1 Scope; definitions.
1312.2 Requirement to publish and file a tariff.
1312.3 Tariff contents and standards; Essential criteria.
1312.4 Filing of tariffs.
1312.5 Amendments to tariffs.
1312.6 Advance notice required.
1312.7 STB tariff designation.
1312.8 Identification of tariff publication.
1312.9 Statement of tariff application and other title page 
          requirements.
1312.10 Notification of tariff changes and nature of changes.
1312.11 Special notification for ordered matter.
1312.12 Posting requirements.
1312.13 Furnishing copies of tariff publications.
1312.14 Powers of attorney and concurrences.
1312.15 Change of carrier or agent.
1312.16 Substitution of service.

    Authority: 49 U.S.C. 721(a), 13702(a), 13702(b) and 13702(d).

    Source: 62 FR 19058, Apr. 18, 1997, unless otherwise noted.



Sec.  1312.1  Scope; definitions.

    (a) Applicability. The provisions of this part address the 
requirements in 49 U.S.C. 13702 that carriers subject to the Board's 
jurisdiction under 49 U.S.C. Chapter 135 and providing transportation or 
service for the movement of property (except bulk cargo, forest 
products, recycled metal scrap, waste paper, and paper waste) by or with 
a water carrier in noncontiguous domestic trade shall publish and file 
with the Board tariffs containing the rates for such transportation.
    (b) Exceptions. The provisions of this part do not apply to:
    (1) Any transportation or service provided by a carrier pursuant to 
49 U.S.C. 14101(b); or
    (2) The transportation of any cargo or type of cargo or service 
which was not subject to regulation by, or under the jurisdiction of, 
either the Federal Maritime Commission (FMC) or the Interstate Commerce 
Commission under Federal law in effect on November 1, 1995.
    (c) Definitions. For the purposes of this part:
    Act means part B of subtitle IV of title 49 of the United States 
Code.
    Agent means a person, association or corporation authorized to 
publish and file rates and provisions on behalf of one or more carriers 
in tariffs published in the agent's name.
    Agent's tariff means a tariff filed in the name of an agent.
    Board means the Surface Transportation Board.
    Bound tariff means a tariff consisting of two or more sheets bound 
at the left edge in pamphlet or book form or a single-sheet tariff.

[[Page 222]]

    Carrier means a motor carrier, water carrier or freight forwarder 
subject to the Board's jurisdiction under 49 U.S.C. Chapter 135.
    Carrier's tariff means a tariff filed in the name of a carrier.
    Collectively established tariff matter means a rate, charge, rule or 
other tariff provision established pursuant to 49 U.S.C. 13703.
    Independently established tariff matter means any rate, charge, rule 
or other tariff provision not established pursuant to 49 U.S.C. 13703.
    Item means a tariff provision of any kind bearing an item number 
designation.
    Joint rate means a rate that applies over the lines or routes of two 
or more carriers made by an agreement between the carriers and effected 
by a concurrence or power of attorney.
    Joint tariff means a tariff that contains joint rates or provisions 
affecting joint rates.
    Local rate means a rate that applies only to one carrier.
    Local tariff means a tariff that contains local rates or provisions 
affecting local rates.
    Looseleaf page means a single page published as part of a new or 
reissued looseleaf tariff or as an amendment to such a tariff.
    Looseleaf tariff means a tariff consisting of looseleaf pages.
    Noncontiguous domestic trade means transportation subject to 
jurisdiction under 49 U.S.C. Chapter 135 involving traffic originating 
in or destined to Alaska, Hawaii, or a territory or possession of the 
United States.
    Original tariff means a bound or looseleaf tariff as originally 
filed excluding amendments.
    Page means that portion of a tariff or supplement printed on one 
side of a sheet.
    Post refers to making filed tariffs available to the public.
    Publication means a bound tariff, a tariff supplement, or a 
looseleaf tariff page.
    Rate means a rate or charge.
    Service terms mean all classifications, rules and practices that 
affect the rates or level of service.
    Supplement means a single sheet, or two or more sheets bound at the 
left edge in pamphlet or book form, identified as a supplement and 
published to amend or cancel a bound or looseleaf tariff.
    Tariff means an issuance (in whole or in part) bearing designations 
required by this part and containing rates, rules, regulations, 
classifications or other provisions published and filed with the Board 
for compliance with 49 U.S.C. 13702.

[62 FR 19058, Apr. 18, 1997, as amended at 64 FR 5195, Feb. 3, 1999]



Sec.  1312.2  Requirement to publish and file a tariff.

    (a) Requirement for tariff. Except when providing transportation for 
charitable purposes without charge, or when providing transportation or 
service described in Sec.  1312.1(b), carriers subject to the Board's 
jurisdiction under 49 U.S.C. Chapter 135 may provide transportation or 
service described in Sec.  1312.1(a) only if the rates, and related 
rules and practices, for such transportation or service are contained in 
a published tariff that is on file with the Board and in effect under 
this part.
    (b) Adherence to tariff. The carrier may not charge or receive a 
different compensation for the transportation or service than the rate 
specified in the tariff, whether by returning a part of that rate to a 
person, giving a person a privilege, allowing the use of a facility that 
affects the value of that transportation or service, or another device. 
The carrier shall keep such tariffs available for public inspection and 
shall make such tariffs available to subscribers as required in this 
part.
    (c) Other information. Provisions for information purposes only may 
be included in a tariff, provided they are clearly identified as such. 
Such provisions may include rates and service terms covering 
transportation not subject to regulation by the Board, and advertising 
and promotional material.
    (d) Effect of filing. The tender of a tariff and its receipt and 
acceptance by the Board do not relieve a carrier of liability for 
violations of the Act, other laws, the Board's regulations, or any 
decision of the Board or a court, or have any effect on the rights of 
persons

[[Page 223]]

to file complaints for substantive violations of the Act or the Board's 
regulations.
    (e) Tariff relief. Relief from the provisions of this part may be 
sought. Requests for such relief shall be submitted in duplicate and 
accompanied by the appropriate fee (see 49 CFR part 1002). Packages 
containing applications for relief shall be prominently marked ``SPECIAL 
TARIFF AUTHORITY APPLICATION.'' The application shall cite all pertinent 
tariff matter and shall provide complete information regarding 
applicant's justification, purpose and manner of relief sought.
    (f) Invalidation of tariffs. Tariffs that violate section 13702 of 
the Act, or a regulation of the Board carrying out that section, may be 
invalidated by the Board. When a tariff is invalidated, the party that 
filed it will be furnished a written explanation of the reasons for such 
action. Tariffs issued in lieu of invalidated tariffs shall so state.



Sec.  1312.3  Tariff contents and standards; Essential criteria.

    (a) Contents. Tariffs filed with the Board must include an accurate 
description of the services offered to the public; must provide the 
specific applicable rates (or the basis for calculating the specific 
applicable rates) and service terms; and must be arranged in a way that 
allows for the determination of the exact rate(s) and service terms 
applicable to any given shipment (or to any given group of shipments).
    (b) Use of multiple tariffs. All information necessary to determine 
applicable rates and service terms for a given shipment need not be 
contained in a single tariff, but if multiple tariffs are used to convey 
that information, the tariff containing the rates must make specific 
reference (by STB tariff designation) to all other tariffs required to 
determine applicable rates and service terms, and the carrier(s) party 
to the rates must participate in all of the tariffs so linked.
    (c) Clarity. Tariff information must be presented in a way that 
facilitates the determination of the prices and services offered, and 
the related service terms. Ambiguous terms and complex methods of 
presentation shall not be used.
    (d) Explanations. Reference marks and abbreviations, other than 
commonly used abbreviations, shall be explained either in the item in 
which they are used or in a separate item.



Sec.  1312.4  Filing of tariffs.

    (a) Filing requirements. (1) Tariffs shall be filed in English with 
rates explicitly stated in U.S. dollars and cents. Two copies of each 
tariff publication shall be filed with the Board. Packages containing 
tariff filings should be prominently marked ``TARIFF FILING'' and 
addressed to: Section of Tariffs, Surface Transportation Board, 1925 K 
Street, NW., Washington, DC 20423-0001.
    (2) A tariff filing must be accompanied by an authorized document of 
transmittal identifying each publication filed, and by the appropriate 
filing fee (see 49 CFR part 1002). Acknowledgment of Board receipt of a 
tariff filing can be obtained by enclosing a duplicate transmittal 
letter and a postage-paid, self-addressed return envelope. Each 
transmittal letter shall clearly indicate in the upper left-hand corner 
thereof:
    (i) The assigned alpha code of the issuing carrier or agent;
    (ii) The number of pages transmitted;
    (iii) The filing fee enclosed, the account number to be billed, or 
the credit card to be charged;
    (iv) The transmittal number if the filer utilizes transmittal 
numbers; and
    (v) If the filing fee is charged to a credit card, the credit card 
number and expiration date, and an authorized signature.
    (b) Paper size. Tariffs shall be printed on paper not larger than 
8\1/2\x11 inches.



Sec.  1312.5  Amendments to tariffs.

    (a) Manner of making changes. An amendment is a change in, addition 
to, or cancellation of part of a tariff. Supplements are the tariff 
publications used to amend bound tariffs, and new or revised pages are 
the tariff publications normally used to amend looseleaf tariffs, 
although looseleaf tariffs can also be amended by supplements. Tariffs 
can also be canceled by new or reissued tariffs (see Sec.  1312.7).

[[Page 224]]

    (b) Supplements. Supplements issued to amend a tariff shall be 
consecutively numbered. Each new supplement shall identify any 
supplement(s) that it cancels, and any supplement(s) that are still in 
effect. A tariff amendment published in a supplement may be carried 
forward to later supplements if it is identified as reissued without 
change from the supplement in which it was originally published.
    (c) Looseleaf pages. Looseleaf pages to an original tariff shall be 
designated as ``Original'' (e.g., Original Title Page, Original Page 1, 
Original Page 2, etc.). Looseleaf pages issued to amend the tariff shall 
bear consecutive revision numbers and shall cancel the prior version(s) 
of the same page (e.g., 1st Revised Page 1 Cancels Original Page 1, 2nd 
Revised Page 1 Cancels 1st Revised Page 1, etc.). Additional original 
pages may also be issued to amend a tariff, by adding new numbered pages 
after the last numbered page, or by adding existing numbered pages with 
alphabetic suffixes (e.g., a page designated as Original Page 2-A could 
be added between pages 2 and 3, etc.). Each looseleaf tariff shall 
include a Check Sheet, a Correction Number Check Sheet, or some other 
method of determining the looseleaf pages issued to amend such tariff.



Sec.  1312.6  Advance notice required.

    (a) Notice requirement. Unless otherwise specifically authorized by 
the Board, tariffs must be filed with the Board on not less than the 
notice shown in paragraph (b) of this section. Notice means the number 
of days the publication is on file with the Board prior to its effective 
date(s). The date the publication is received by the Board counts as the 
first day of notice.
    (b) Length of notice. A tariff may not become effective earlier 
than:
    (1) Thirty days after filing for all collectively established tariff 
matter.
    (2) Seven workdays after filing for independently established 
increased tariff matter.
    (3) Upon filing for independently established new tariff matter, 
independently established reduced tariff matter, the addition or 
restoration of a carrier's participation in a tariff, a correction to 
the list of participating carriers in a tariff (other than the 
cancellation of a carrier's participation), an extension of the 
expiration date of tariff matter, or a postponement of the effective 
date of proposed tariff matter.
    (c) Receipt of tariffs by the Board. The Board will receive tariff 
filings between the hours of 8:30 A.M. and 5:00 P.M. Eastern Time on 
workdays. Tariff filings delivered to the Board on other than a workday, 
or after 5:00 P.M. on a workday, will be considered as received the next 
workday.
    (d) Definitions. For the purposes of this section:
    Increased means any tariff change that results in higher charges to 
the payer of freight charges or reduced service at the same rate;
    New means an initial rate or other provision for a new service;
    Reduced means any tariff change that results in lower charges to the 
payer of freight charges or expanded service at the same rate; and
    Workdays means all days except Saturdays, Sundays and all Federal 
holidays observed in the District of Columbia.

[62 FR 19058, Apr. 18, 1997, as amended at 64 FR 5195, Feb. 3, 1999]



Sec.  1312.7  STB tariff designation.

    (a) Format. Every tariff shall show an authorized tariff designation 
consisting of:
    (1) The characters ``STB'';
    (2) The assigned alpha code of the carrier or agent issuing the 
tariff; and
    (3)(i) The tariff number (selected by the carrier or agent) to 
distinguish that tariff from all other tariffs filed by the same issuing 
carrier or agent. Tariff numbers shall not exceed 5 numerical digits and 
may be followed by not more than 2 letter suffixes. Examples of tariff 
numbers are:

STB XXXX 100
STB XX 8000-A
STB XXXX 12345-AB

    (ii) Suffixes may be used only to designate reissues of tariffs. As 
an example, a reissue of tariff 1000 could be designated 1000-A, a 
reissue of tariff 1000-A could be designated 1000-B, etc.
    (b) Alpha codes. Alpha codes are assigned to carriers and tariff 
agents by

[[Page 225]]

the National Motor Freight Traffic Association, Inc., 2200 Mill Road, 
Alexandria, VA 22314.
    (c) Fees for assignment. Fees may be assessed for the assignment of 
codes, but may not exceed the processing costs.
    (d) Code listing. A list of the assigned alphabetical codes, and the 
names of the carriers and agents to which they are assigned, as well as 
subsequent changes to the list, shall be submitted to the Board's 
Section of Tariffs.



Sec.  1312.8  Identification of tariff publication.

    (a) Every tariff publication filed with the Board shall include:
    (1) The STB tariff designation;
    (2) The name of the issuing carrier or agent;
    (3) The name of the tariff; and
    (4) The issue and effective dates of the publication.
    (b) If the publication contains matter effective on other than the 
general effective date, the notation (Except as Noted) shall be included 
with the general effective date.



Sec.  1312.9  Statement of tariff application and other title page requirements.

    Every new or reissued tariff or supplement filed with the Board 
shall lead with a title page. The title page of each tariff or 
supplement shall include the expiration date of the tariff or 
supplement, if applicable. The title page of each tariff shall also 
provide the complete name and address of the issuing carrier or agent; a 
contact person and telephone number; the certificate or operating 
authority number, if applicable; and a succinct statement of territorial 
application, mode of serving carrier(s), type of rates, and description 
of tariff content. EXAMPLES:
    (a) Local water carrier rates on FREIGHT, ALL KINDS from points in 
Alaska to points in the United States.
    (b) Joint motor/water commodity rates in containerized service 
between interior points in the United States and ports in Puerto Rico 
and Hawaii; and governing rules.



Sec.  1312.10  Notification of tariff changes and nature of changes.

    Every publication filed with the Board containing tariff changes 
shall clearly identify such changes and their nature (whether an 
increase or decrease in service, rates or transportation charges).



Sec.  1312.11  Special notification for ordered matter.

    Every tariff publication containing matter filed in compliance with 
a Board decision or court order shall indicate in the publication the 
relevant decision or order, and as well the number of days' notice 
authorized or required.



Sec.  1312.12  Posting requirements.

    (a) General posting requirements. (1) Each carrier shall maintain, 
at its principal office, a complete set of its tariffs (proposed and 
effective) and those to which it is a party.
    (2) Each carrier shall also maintain some or all of its tariffs at 
other locations, as may be useful. Carriers shall provide information 
regarding all locations where tariffs may be viewed.
    (3) At all points where tariffs are posted, they shall be made 
available for inspection by any person during the carrier's normal 
business hours. The tariffs shall be accessible and readable. The 
carrier shall also post, in a conspicuous place in those locations, a 
notice, in large print, which contains a statement that the tariffs are 
available for public inspection.
    (4) At all other carrier business offices, the carrier shall display 
a notice advising the public of the location of the nearest available 
tariff. The notice shall be in large print and posted in a conspicuous 
place. In addition, the carrier shall, upon request, make particular 
tariffs available at that location as soon as possible but not later 
than within 20 days, or provide the sought information orally if 
satisfactory to the requestor.
    (5) Any publication referred to in a tariff must be posted with that 
tariff.
    (b) Exception to the posting requirements. If any tariff maintained 
pursuant to paragraph (a)(2) of this section has not been used for a 
substantial

[[Page 226]]

length of time, the posting of that tariff, including its reissues, may 
be discontinued at that station until such time as a request is made to 
have it reposted. It shall then be reposted within 20 days.



Sec.  1312.13  Furnishing copies of tariff publications.

    (a) Definitions. Subscriber, as used in this section, means any 
person (other than carrier participants in a tariff) that is voluntarily 
furnished, or that requests that it be furnished, one or more copies of 
a particular tariff with or without subsequent amendments or reissues of 
that tariff.
    (b) Sending new publications to subscribers. (1) The publishing 
carrier or agent shall send each newly-issued tariff, supplement, or 
loose-leaf page as requested to each subscriber by first class mail, or 
other means requested in writing by the subscriber.
    (2) Newly-issued tariffs, supplements, or loose-leaf pages shall be 
sent to each subscriber not later than the time the copies for official 
filing are sent to the Board.
    (3) Carriers or agents may, if acceptable to a subscriber, furnish 
only specific portions of original tariffs and amendments affecting 
those portions.
    (c) Certification. The letter of transmittal accompanying the copies 
filed with the Board shall contain the following certification:

    I certify that compliance with 49 CFR 1312.13 has been made.

    (d) Charges. (1) If any charge is made, the charge for copies of 
tariff publications sent to subscribers shall be reasonable, and 
identical for the same publications.
    (2) No charge may be made (even for the cost of sending the 
publication) for any publication that is invalidated by the Board.
    (e) Notice of invalidation. If a publication is invalidated, the 
subscribers shall be notified.
    (f) Alternative subscription services. The service described in this 
section must be available to any subscriber requesting it; however, the 
requirement to offer such service does not preclude the offering of 
different services to subscribers requesting those services.



Sec.  1312.14  Powers of attorney and concurrences.

    (a) Authorization. Rates and services of a carrier must be filed in 
a tariff issued in that carrier's name unless they are filed:
    (1) In an agent's tariff when the carrier has executed a power of 
attorney authorizing that individual or entity to serve as its tariff 
agent; or
    (2) In a tariff of another carrier through issuance of a concurrence 
to the latter carrier authorizing the first carrier's participation in 
joint rates and through routes.
    (b) Disclosure of authorization. If two or more carriers execute 
powers of attorney to the same agent, it is not necessary for those 
carriers to exchange concurrences to participate in joint rates in that 
agent's tariffs. Powers of attorney and concurrences are not to be filed 
with the Board, but shall be provided to any person on request.



Sec.  1312.15  Change of carrier or agent.

    (a) Change in carrier. When a carrier's name is lawfully changed, or 
a fiduciary assumes possession and control of a carrier's property, all 
affected tariffs must be amended to reflect the change. The amendments 
required by this paragraph shall be filed promptly and, if possible, 
prior to their effective date, but in no case later than 60 days 
thereafter. Regardless of the date the tariff is actually filed, the 
effective date for an amendment required by this paragraph is the date 
the event occurs.
    (b) Change of agent. When a new agent is appointed to take over an 
agency, or when an alternate agent assumes the duties of the principal 
agent, each of the superseded agent's effective tariffs shall 
immediately be amended to reflect the change, bearing an effective date 
the same as the date of the transfer. In the case of a new agent, this 
may only occur after one or more of the participating carriers issues a 
power of attorney to the new agent, and revokes the previous power of 
attorney. At the same time, all affected tariffs will be amended to 
reflect the new powers of attorney, and all carriers who have not issued 
them must be canceled from the tariff.

[[Page 227]]



Sec.  1312.16  Substitution of service.

    If a water or motor carrier (hereafter referred to as Carrier A) 
desires to have the option of substituting the services of a carrier of 
a different transportation mode (hereafter referred to as Carrier B) for 
part of its movement of a shipment, it may do so if:
    (a) The shipment moves on the bill of lading that would be used if 
Carrier A were performing the service;
    (b) Carrier A assumes the responsibility for the lading while it is 
in the possession of Carrier B; and
    (c) Movement of the lading has been made prior to, or will be made 
subsequent to, the service performed by Carrier B.



PART 1313_RAILROAD CONTRACTS FOR THE TRANSPORTATION OF AGRICULTURAL PRODUCTS--Table of Contents



Sec.
1313.1 Scope; definition of terms.
1313.2 Contract summary filing requirement.
1313.3 Board review; contract disapproval.
1313.4 Filing procedures and formats for contract summaries.
1313.5 Contract and contract summary availability.
1313.6 Contract summary for agricultural commodities.
1313.7 Contract summary for grain products--involving a port.
1313.8 Contract summary for grain products--not involving a port.
1313.9 Grounds for complaints and contract review.
1313.10 Procedures for complaints and discovery.

    Authority: 49 U.S.C. 721(a) and 10709.

    Source: 61 FR 68669, Dec. 30, 1996, unless otherwise noted.



Sec.  1313.1  Scope; definition of terms.

    (a) This part addresses the provisions of 49 U.S.C. 10709 that 
require rail carriers to file with the Board a summary of each contract 
for the transportation of agricultural products (including grain, as 
defined in 7 U.S.C. 75 and products thereof) and that allow complaints 
to be filed with the Board regarding such contracts.
    (b) The provisions of this part do not apply to any transportation 
that is exempted from the Board's contract regulation pursuant to an 
exemption issued under 49 U.S.C. 10502 or former 49 U.S.C. 10505 
(repealed effective January 1, 1996).
    (c) For purposes of this part, the term contract means an agreement, 
including any amendment thereto, entered into by one or more rail 
carriers and one or more purchasers of rail services to provide 
specified transportation of agricultural products (including grain, as 
defined in 7 U.S.C. 75 and products thereof) under specified rates and 
conditions. The term amendment includes contract modifications agreed to 
by the parties.
    (d) An amended contract is treated as a new contract under this 
part. Remedies are revived and review is again available, upon 
complaint.



Sec.  1313.2  Contract summary filing requirement.

    (a) Rail carriers subject to the jurisdiction of the Surface 
Transportation Board under 49 U.S.C. 10501 must promptly file with the 
Board a summary of each contract entered into for the transportation of 
agricultural products.
    (b) Contract summaries not in compliance with this part may be 
rejected by the Board. If a contract summary is rejected, it will be 
considered as not filed, and the carrier must promptly file a corrected 
contract summary to replace the rejected summary.



Sec.  1313.3  Board review; contract disapproval.

    (a) Board review. (1) No later than 30 days after a contract summary 
is filed, the Board may, on complaint, begin a proceeding to review such 
contract on the grounds described in Sec.  1313.9.
    (2) If the Board begins a proceeding, it shall determine, within 30 
days after the proceeding is commenced, whether the contract is in 
violation of 49 U.S.C. 10709.
    (b) Contract disapproval. If the Board finds that the contract is in 
violation of 49 U.S.C. 10709, it will:
    (1) Disapprove the contract; or
    (2) Where the Board finds unreasonable discrimination, in accordance 
with 49 U.S.C. 10709(g)(2)(B)(i), order the contracting carrier(s) to 
provide to the complainant(s) rates and service

[[Page 228]]

substantially similar to those contained in the contract at issue, with 
such differences in terms and conditions as are justified by the 
evidence.
    (c) Applicable rates/charges if a contract is disapproved. If the 
Board disapproves a contract (or contract amendment), the appropriate 
non-contract rates/charges (or the contract provisions otherwise in 
effect) will be applicable.



Sec.  1313.4  Filing procedures and formats for contract summaries.

    (a) Filing of Summaries. (1) Two copies of each contract summary, 
containing the applicable information specified in Sec. Sec.  1313.6, 
1313.7, or 1313.8, as appropriate, must be filed with the Board as soon 
as possible, but no longer than 7 days after the date of the contract 
(or contract amendment).
    (2) The outside envelope or wrapper containing one or more contract 
summaries must be prominently marked ``Rail Contract Summary'' and 
addressed to: Tariffs Branch, Surface Transportation Board, Washington, 
DC 20423.
    (3) A transmittal letter identifying the submitted publication(s), 
and the name and telephone number of a contact person, must accompany 
each filing of one or more contract summaries. Each transmittal letter 
shall clearly indicate in the upper left-hand corner thereof:
    (i) The assigned alpha code of the filing carrier;
    (ii) The number of summaries transmitted;
    (iii) The filing fee enclosed, the account number to be billed, or 
the credit card to be charged;
    (iv) The transmittal number if the filer utilizes transmittal 
numbers; and
    (v) If the filing fee is charged to a credit card, the information 
must include the credit card number and expiration date, and an 
authorized signature.
    (b) Contract summary title page. The title page of each contract 
summary must contain only the following information:
    (1) In the upper right corner, the contract summary number (see 
paragraph (c) of this section), followed by the amendment number if an 
amended contract summary.
    (2) In the center of the page, the filing carrier's name, followed 
by the words ``CONTRACT SUMMARY'' or ``AMENDED CONTRACT SUMMARY'', as 
applicable, in large print.
    (3) Date of contract and its effective date.
    (4) In the center lower portion, the individual submitting the 
filing, and the name of the individual(s) for service of complaints (if 
not the same individual). If not otherwise noted, a complainant may rely 
on service to the individual submitting the filing.
    (c) Contract summary numbering system. (1) The contract summary 
identification number must include the word ``STB,'' the standard 
carrier alphabetic code for the filing railroad (limited to four 
letters), the letter ``C,'' and a sequential number, with each separated 
by a hyphen. The following is an example: the 357th contract summary 
filed by the Conrail would have the following identification number: 
``STB-CR-C-357.''
    (2) At its option, the carrier may issue contract summaries with 
nonconsecutive numbers if it assigns blocks of numbers for specific 
uses. An index to the blocks of reserved numbers shall be filed with the 
Board.
    (d) Format requirements for contract summary information. (1) The 
contract summary must enumerate and have each item required in 
Sec. Sec.  1313.6, 1313.7 or 1313.8 of this part, as applicable, 
completed. When the item does not pertain to the contract, the term 
``Not Applicable'' (``NA'') shall be used.
    (2) Changes in prior contract summaries must be underscored and must 
be followed by the words ``addition,'' ``deletion,'' ``extension,'' 
``cancellation,'' or other appropriate descriptive phrase in 
parentheses. If the change to the contract is only in confidential 
matter, a statement to that effect must be made in the amended contract 
summary and must indicate the particular feature to which the change 
applies (i.e., rate, special feature, etc.). If ``not applicable'' is 
permitted in the original summary under Sec. Sec.  1313.6 through 1313.8 
of this part, the amended summary may use ``not applicable''

[[Page 229]]

with a notation that a change pertained only to confidential data.
    (3) Amended contract summaries may not substitute phrases such as 
``not applicable'' or ``no change'' where disclosure was required in the 
original contact summary (such as in the commodity description); amended 
contract summaries must set forth all required non-confidential terms in 
the contract, whether amended or not.



Sec.  1313.5  Contract and contract summary availability.

    (a)(1) A contract summary filed under these rules shall be made 
available for public inspection in the Tariffs Branch of the Surface 
Transportation Board.
    (2) A contract summary filed under these rules also shall be made 
available by the carrier(s) participating in the contract, upon 
reasonable request.
    (b) Where not already required by Sec.  1313.10(a)(5) of this part, 
the contract for which a summary is filed under these rules shall be 
provided immediately to the Board, upon request, for its use in carrying 
out its functions under the statute.



Sec.  1313.6  Contract summary for agricultural commodities.

    (a) Summary information. The summary of a contract for the 
transportation of agricultural commodities must contain the following 
information:
    (1) Carrier names. A list, alphabetically arranged, of the corporate 
names of all carriers that are parties to the contract, and their 
addresses for service of complaints.
    (2) Specific commodity. The specific commodity or commodities to be 
transported under the contract. Vague commodity descriptions such as 
``grain'' are not permitted, even if that is the commodity description 
in the contract.
    (3) Shipper identity. The specific identity of the shipper party to 
the contract, as well as any other party or parties on whose behalf that 
shipper is acting (to the extent known).
    (4) Specific origins, destinations, transit points, and other 
shipper facilities. (i) Each specific origin and destination point to 
and from which the contract applies. Vague descriptions such as 
``various points in Kansas'' are not acceptable. Broad geographic 
descriptions such as ``all stations in Kansas'' are permitted only to 
the extent such terms are actually used in the contract and such origins 
and destinations are subject to specific identification by reference to 
available publications.
    (ii) Each port involved.
    (iii) Each transit point identified in the contract.
    (iv) Each shipper facility affecting performance under the contract 
(if not included in the origin/destination points or transit points), to 
the extent identified in the contract or known to the contracting 
parties.
    (5) Contract duration. (i) The date on which the contract has or 
will become applicable to the transportation services covered by the 
contract.
    (ii) The termination date of the contract, and any terms for 
automatic extension or renewal of the contract.
    (iii) Any provisions for optional extension.
    (6) Rail car data. (i) Either the information in paragraph (a)(6)(A) 
of this section or the certified statement in paragraph (a)(6)(B) of 
this section as follows:
    (A) The number of dedicated cars (or, at the carrier's option, car 
days), by major car type, to be used to fulfill the contract or contract 
options, including those that are:
    (1) Available and owned by the carrier(s) listed in paragraph (a)(1) 
of this section;
    (2) Available and leased by those carrier(s), with average number of 
bad-order cars identified; and
    (3) (Optional) On order (for ownership or lease), along with 
delivery dates.
    (B) A certified statement that:
    (1) The shipper will furnish the rail cars used for the 
transportation provided under the contract, and that those rail cars 
will not be leased from the carrier; or
    (2) The contract is restricted to services which do not entail car 
supply.
    (ii) For contract summaries filed on or before September 30, 1998, a 
certified statement that the cumulative equipment total for all 
contracts for the transportation of agricultural commodities (including 
forest products,

[[Page 230]]

but not including wood pulp, wood chips, pulpwood or paper) does not 
exceed 40 percent of the capacity of carrier-owned and -leased cars by 
applicable car type.
    (7) Rates and charges. (i) The specific base rates and/or charges 
that would apply without the contract.
    (ii) A summary of any escalation provisions in the contract.
    (8) Volume. All volume, car and/or train size requirements, as set 
forth in the contract, including:
    (i) Movement type (single-car, multiple-car, unit-train).
    (ii) Minimum and actual volume requirements under the contract, by 
applicable period(s) (annual, quarterly, etc.).
    (iii) Volume breakpoints affecting the contract.
    (9) Special features. The existence (but not the terms or amount) of 
any special features, such as transit-time commitments, credit terms, 
discounts, switching, special demurrage, guaranteed or minimum 
percentages, etc.
    (b) Supplemental information. In the event a complaint is filed that 
is directed at a carrier's ability to fulfill its common carrier 
obligation with carrier-furnished cars, the carrier(s) shall immediately 
supplement the information contained in the contract summary by 
submitting to the Board, and supplying to the complainant, additional 
data on the cars used to fulfill the challenged contract. This 
additional data shall include (by major car type used to fulfill the 
contract):
    (1) Total bad-car orders;
    (2) Assigned car obligations; and
    (3) Free-running cars.



Sec.  1313.7  Contract summary for grain products--involving a port.

    (a) Summary information. The summary of a contract for the 
transportation of grain products that involves service to or from a port 
must contain the following information:
    (1) Carrier names. A list, alphabetically arranged, of the corporate 
names of all carriers that are parties to the contract, and their 
addresses for service of complaints.
    (2) Specific commodity. The specific commodities to be transported 
under the contract. Broad commodity descriptions such as ``grain 
products'' are permitted only to the extent that is the commodity 
description in the contract.
    (3) Contract duration. (i) The date on which the contract has or 
will become applicable to the transportation services covered by the 
contract.
    (ii) The termination date of the contract, and any terms for 
automatic extension or renewal of the contract.
    (4) Rates and charges. (i) The specific base rates and/or charges 
that would apply without the contract.
    (ii) The existence (but not the terms or amount) of any escalation 
provisions.
    (5) Volumes. The existence (but not the terms or amount) of any 
provisions regarding movement type (e.g. single-car, multiple-car, unit-
train) or minimum volume requirements.
    (6) Special features. The existence (but not the terms or amount) of 
special features such as transit time commitments, guaranteed car 
supply, minimum percentage of traffic requirements, credit terms, 
discounts, etc.
    (7) Rail car data. Either the information in paragraph (a)(7)(i) of 
this section or the certified statement in paragraph (a)(7)(ii) of this 
section as follows:
    (i) The number of dedicated cars (or, at the carrier's option, car 
days), by major car type, to be used to fulfill the contract or contract 
options, including those that are:
    (A) Available and owned by the carrier(s) listed in paragraph (a)(1) 
of this section;
    (B) Available and leased by those carrier(s), with average number of 
bad-order cars identified; and
    (C) (Optional) On order (for ownership or lease), along with 
delivery dates.
    (ii) A certified statement that:
    (A) The shipper will furnish the rail cars used for the 
transportation provided under the contract, and that those rail cars 
will not be leased from the carrier; or
    (B) The contract is restricted to services which do not entail car 
supply.
    (8) Ports. (i) The port(s) involved.
    (ii) Either the mileages (rounded to the nearest 50 miles) between 
the port and each inland origin or destination,

[[Page 231]]

or the specific inland origin and destination points.
    (b) Supplemental information. In the event a complaint is filed that 
is directed at a carrier's ability to fulfill its common carrier 
obligation with carrier-furnished cars, the carrier(s) shall immediately 
supplement the information contained in the contract summary by 
submitting to the Board, and supplying to the complainant, additional 
data on the cars used to fulfill the challenged contract. This 
additional data shall include (by major car type used to fulfill the 
contract):
    (1) Total bad-car orders;
    (2) Assigned car obligations; and
    (3) Free-running cars.



Sec.  1313.8  Contract summary for grain products--not involving a port.

    (a) Summary information. The summary of a contract for the 
transportation of grain products that does not involve service to or 
from a port must contain the information specified in Sec.  1313.7, 
paragraphs (a)(1), (2), (3) and (7). It must also contain the 
information specified in Sec.  1313.7(a)(6) if the contract contains 
such terms.
    (b) Supplemental information. In the event a complaint is filed that 
is directed at a carrier's ability to fulfill its common carrier 
obligation with carrier-furnished cars, the carrier(s) shall immediately 
supplement the information contained in the contract summary by 
submitting to the Board, and supplying to the complainant, additional 
data specified in Sec.  1313.7(b).



Sec.  1313.9  Grounds for complaints and contract review.

    (a) A complaint may be filed against a contract covered by this 
part:
    (1) By any shipper on the ground that such shipper individually will 
be harmed because the contract unduly impairs the ability of the 
contracting rail carrier or carriers to meet their common carrier 
obligations to the complainant under 49 U.S.C. 11101;
    (2) By a port on the ground that such port individually will be 
harmed because the contract will result in unreasonable discrimination 
against such port; and
    (3) By a shipper of agricultural commodities on the ground that such 
shipper individually will be harmed because:
    (i) The rail carrier has unreasonably discriminated by refusing to 
enter into a contract with such shipper for rates and services for the 
transportation of the same type of commodity under similar conditions to 
the contract at issue, and that such shipper was ready, willing, and 
able to enter into such a contract at a time essentially contemporaneous 
with the period during which the contract at issue was offered; or
    (ii) The contract constitutes a destructive competitive practice.
    (b) Unreasonable discrimination, for purposes of paragraph (a)(3)(i) 
of this section, has the same meaning as the term has under 49 U.S.C. 
10741.



Sec.  1313.10  Procedures for complaints and discovery.

    (a) Complaints, discovery petitions, replies, and appeals--(1) 
Initial filing. Complaints must be filed by the 18th day after the 
contract summary is filed. Any discovery petition must accompany the 
complaint.
    (2) Complaint. A complaint must contain the correct, unabbreviated 
names and addresses of the complainant(s) and defendant(s). The 
complainant must set out the statutory provisions under which it has 
standing to file a complaint, and its reasons for requesting that the 
Board find the challenged contract unlawful.
    (3) Discovery petition. A discovery petition must note on the front 
page ``Petition for Discovery of Rail Contract'' and note the contract 
(and any applicable amendment) number. It should provide the following 
information:
    (i) Standing--grounds. The ground upon which the petitioner's 
complaint is based under Sec.  1313.9.
    (ii) Standing--affected party. Pertinent information regarding the 
petitioner's actual or potential participation in the relevant market, 
including:
    (A) The nature and volume of petitioner's relevant business.
    (B) The relevant commodities that petitioner ships or receives.
    (C) Comparisons of the petitioner's commodities, locations of 
shipping facilities and serving carriers, actual or

[[Page 232]]

potential traffic patterns and serving carrier(s), with the traffic 
patterns and serving carrier(s) identified in the contract summary. 
State whether petitioner is a consignor or consignee.
    (D) The petitioner's ability to ship the commodity in question at a 
time generally simultaneous with the challenged contract.
    (E) The potential effect of the contract on the petitioner's 
relevant business.
    (F) Any additional supporting information, including prior 
negotiations, if any.
    (iii) Relevance. The relevance of the information sought to the 
petitioner's challenge to the contract.
    (iv) Nexus. Where the complaint challenges a carrier's ability to 
perform its common carrier obligation, the nexus between the information 
sought and the common carrier obligation of the contracting carrier(s).
    (4) Service of pleadings. The complainant must certify that 2 copies 
of the complaint, and discovery petition if filed, have been sent to the 
contracting carrier(s) either by hand, express mail, or other overnight 
delivery service the same day as filed at the Board. The contracting 
carrier shall in turn serve the contracting shipper with a copy of the 
complaint and petition. Replies shall be served in the same manner on 
complainant/petitioner.
    (5) Submission of contract. Immediately upon the filing of a 
complaint, the rail carrier filing the contract summary shall forward to 
the Board, by hand, express mail, or other overnight delivery service, 
the subject contract or amended contract.
    (6) Replies. Replies to the complaint/petition are due within 5 days 
from the date of filing of the complaint/petition, and in no event later 
than noon on the 23rd day following filing of the contract summary.
    (7) Copies. An original and 10 copies of complaints, petitions and 
replies must be filed with the Board in a package marked ``Confidential 
Rail Contract Material''.
    (8) Discovery appeals. If action on a petition for discovery is 
taken under delegated authority, that action may be appealed to the 
Board, subject to the following:
    (i) An appeal must be received within 2 days of the initial 
decision, but in no event later than the 28th day after the contract 
summary is filed.
    (ii) The appeal must be marked ``Appeal of Delegated Authority 
Action Regarding Rail Contract Discovery''.
    (iii) Telegraphic notice or its equivalent must be given to the 
opposing parties.
    (iv) Replies to the appeal must be filed within one day after the 
appeal is filed.
    (v) An original and 10 copies of appeals and replies must be filed 
with the Board.
    (9) Furnishing of information. If discovery is granted, the carrier 
must furnish the required information to the petitioner by the 1st 
working day after the Board issues its decision.
    (b) Informal discovery. (1) Prior to filing a petition for formal 
discovery under paragraph (a) of this section, a petitioner may request 
discovery from the carrier.
    (2) The carrier must promptly grant or deny the request.
    (3) Agreements between carriers and shippers for informal discovery 
are permitted under these rules.
    (c) Confidentiality. If confidential contract data are filed with 
the Board in a pleading, the party filing these data should submit them 
as a separate package, clearly marked on the outside ``Confidential 
Material Subject to Protective Order.'' The order in paragraph (d) of 
this section applies to the parties specified in the order who receive 
confidential information through proceedings before the Board or through 
informal discovery.
    (d) Protective order. Petitioner and carriers, and their duly 
authorized agents, shall limit to the contract complaint proceeding the 
use of contract information or other confidential commercial information 
which may be revealed in the contract, the complaint, reply, or in any 
other pleading relating to the contract. This restriction shall be a 
condition to release of any contract term to a petitioner/complainant 
and shall operate similarly on a carrier

[[Page 233]]

in possession of confidential information which may be contained in a 
complaint, petition for discovery, or request for informal disclosure. 
Any information pertaining to parties to the contract or subject to the 
contract (including consignors, consignees and carriers), or pertaining 
to the terms of the contract, or relating to the petitioner's/
complainant's confidential commercial information, must be kept 
confidential. Neither the information nor the existence of the 
information shall be disclosed to third parties, except for: consultants 
or agents who agree, in writing, to be bound by this regulation; 
information which is publicly available; information which, after 
receipt, becomes publicly available through no fault of the party 
seeking to disclose the information after it has become publicly 
available, or is acquired from a third party free of any restriction as 
to its disclosure. The petitioner/complainant or carrier must take all 
necessary steps to assure that the information will be kept confidential 
by its employees and agents. No copies of the contract terms or other 
confidential information are to be retained by the parties not 
originally privy to the data subsequent to the termination of the 
proceeding.
    (e) Contract review proceeding. If the Board institutes a proceeding 
to review the contract, the complainant's case-in-chief is due 9 days 
after the institution of the proceeding, but no later than 39 days after 
the filing of the contract summary. Replies are due 16 days after the 
institution of the proceeding, but no later than 46 days after the 
filing of the contract summary.



PART 1319_EXEMPTIONS--Table of Contents



    Authority: 49 U.S.C. 721(a) and 13541.

    Source: 62 FR 9110, Feb. 28, 1997, unless otherwise noted.



Sec.  1319.1  Exemption of freight forwarders in the noncontiguous domestic trade from tariff filing requirements.

    Freight forwarders subject to the Board's jurisdiction under 49 
U.S.C. 13531 are exempted from the tariff filing requirements of 49 
U.S.C. 13702.

                       PARTS 1320	1324 [RESERVED]



PART 1325_EXTENSION OF CREDIT TO CANDIDATES FOR FEDERAL OFFICE OR THEIR REPRESENTATIVES--Table of Contents



Sec.
1325.1 Extension of unsecured credit prohibited.
1325.2 Credit agreements.
1325.3 Federal office.

    Authority: Pub. L. 92-225, the Federal Election Campaign Act of 
1971, enacted Feb. 7, 1972.

    Source: 37 FR 10446, May 23, 1972, unless otherwise noted.



Sec.  1325.1  Extension of unsecured credit prohibited.

    Persons subject to regulation by the Surface Transportation Board 
shall not knowingly and willfully provide, for candidates for Federal 
office or their representatives, service or goods related to their 
campaign without obtaining either prepayment or a binding guarantee of 
payment through a sufficient deposit, bond, collateral, or other means 
of security. The extension of credit to such persons shall not exceed 
the amount of the security posted.



Sec.  1325.2  Credit agreements.

    (a) All agreements to extend credit to candidates for Federal office 
or their representatives by persons subject to regulation by the Surface 
Transportation Board (1) must be in writing, (2) must contain a detailed 
description of the deposit, bond, collateral, or other means of 
security, used to secure payment of the debt, and (3) must be signed by 
all parties to the agreement. A copy of each such agreement must be 
filed with this Board's Bureau of Operations in Washington, DC, within 
20 days of the date of its execution.
    (b) [Reserved]



Sec.  1325.3  Federal office.

    For the purposes of this section, Federal office means the office of 
President or Vice President of the United States; or of Senator or 
Representative in, or Delegate or Resident Board Member to, the Congress 
of the United States.

[[Page 234]]



PART 1331_APPLICATIONS UNDER 49 U.S.C. 10706 AND 13703--Table of Contents



Sec.
1331.1 Form and content of application.
1331.2 Required exhibits.
1331.3 Procedure.
1331.4 New parties to an agreement.
1331.5 Additional standards for retaining antitrust immunity by 
          passenger bus industry rate bureaus.

    Authority: 49 U.S.C. 721, 10706 and 13703.

    Source: 55 FR 11206, Mar. 27, 1990, unless otherwise noted.



Sec.  1331.1  Form and content of application.

    The application and supporting exhibits shall conform to 49 CFR part 
1104 and shall show, in the order and with the paragraph designations 
indicated, the following:
    (a) Full name and business address of the carrier applicant(s); 
whether each applicant is a corporation, individual, or partnership; if 
a corporation, the State of incorporation; and if a partnership, the 
names of the partners and date of the partnership's formation.
    (b) Full name and business address of each entity on whose behalf 
the application is filed and whether it is a corporation, individual, or 
partnership.
    (c) Whether applicant and each entity on whose behalf the 
application is filed is a rail, motor, or water carrier, a household 
goods freight forwarder, or express, sleeping-car, or pipeline company.
    (d) If the agreement of which approval is sought pertains to a 
conference, bureau, committee, or other organization, a complete 
description of such organization, including any subunits, and of its or 
their functions and methods of operation, together with a description of 
the territorial scope of such operations, and a complete description of 
any working or other arrangement or relationship that such organization 
has with any other organization. If the agreement is of any other 
character, a precise statement of its nature and scope and the mode of 
procedure thereunder.
    (e) The facts and circumstances relied upon to establish that the 
agreement will promote the national transportation policy at 49 U.S.C. 
10101.
    (f) The name, title, and address of the person to whom 
correspondence is to be sent.



Sec.  1331.2  Required exhibits.

    There shall be filed with and made a part of each original 
application, and each copy, the following exhibits:
    (a) As Exhibit 1, a true copy of the agreement.
    (b) If the agreement pertains to a conference, bureau, committee, or 
other organization:
    (1) As Exhibit 2, a copy of the constitution, bylaws, or other 
documents or writings specifying the organization's powers, duties, and 
procedures, unless incorporated in the agreement filed as Exhibit 1;
    (2) As Exhibit 3, an organization chart; and
    (3) As Exhibit 4, a schedule of its charges to members or a 
statement showing how the expenses are divided among the members.
    (c) As Exhibit 5, opinion of counsel that the application meets the 
requirements of 49 U.S.C. 10706, with specific reference to any 
specially pertinent provisions of articles of incorporation or 
association.



Sec.  1331.3  Procedure.

    (a) Applicant shall serve a copy of the application by first class 
mail upon the regulatory body having jurisdiction over rates, fares, or 
charges of each State or territory covered by the agreement, and the 
original application filed with the Board shall include a certificate 
naming the bodies upon whom the application has been served.
    (b) The Board will publish in the Federal Register a notice that an 
application has been filed under these rules and indicating how a 
hearing on the application may be obtained.
    (c) A protest to an application should conform to 49 CFR part 1104.
    (d) The Board's general rules of practice govern procedural matters 
not specifically covered by these rules.



Sec.  1331.4  New parties to an agreement.

    Where a carrier becomes a party to an agreement which has been 
approved by the Board, such approval will extend to such carrier upon 
the filing with the Board by the carrier or its authorized

[[Page 235]]

agent of a verified statement that it has become a party to the 
agreement, which statement shall show the information prescribed at 
Sec.  1331.1(b). Such carrier may provide transportation under joint 
rates or over through routes, but may not otherwise act with carriers of 
a different class (as defined at 49. U.S.C. 10706(d)).



Sec.  1331.5  Additional standards for retaining antitrust immunity by passenger bus industry rate bureaus.

    (a) Rate bureaus must comply with the terms of their agreements, as 
approved by the Board. Failure to do so will result in lack of immunity 
for that activity.
    (b) The bureaus are required to maintain detailed minutes of all 
meetings where immunized matters are discussed. The bureaus will be 
subject to withdrawal of their immunity for serious continuing 
violations of Board standards, and individual tariff publications will 
be subject to rejection, suspension, or investigation for improprieties 
in the rate bureau process.
    (c) Absent Board approval, no other changes may be made in any 
approved agreement.
    (d) For the purposes of the statute, the following definitions shall 
apply:
    (1) A general increase is a proposed general adjustment of 
substantially all the rates published in a rate bureau's tariff(s).
    (2) A broad change in tariff structure modifies in a relatively non-
uniform fashion the relationship between most rates published in a rate 
bureau's tariff, and applies to a large area, either nationally or 
regionally.
    (3) An innovative fare will be determined on a case-by-case basis; 
the Board will, on request, issue opinions on whether particular rate 
proposals may be regarded as innovative. Two examples of an innovative 
fare are:
    (i) A fare for unlimited passenger travel; and
    (ii) An experimental fare providing for transportation at the 
passenger's option over the line of one or more carriers.
    (4) A promotional fare generally has three characteristics:
    (i) Limited duration;
    (ii) Attractive price or level of service quality; and
    (iii) Some added feature in addition to those normally offered.



PART 1332_FILING CONTRACTS FOR SURFACE MAIL TRANSPORTATION--Table of Contents



Sec.
1332.1 Applicability.
1332.2 Availability of contracts.
1332.3 Manner of submitting contracts.

    Authority: Sec. 5005(b)(3), 84 Stat. 767, 39 U.S.C. 5005.



Sec.  1332.1  Applicability.

    The provisions of this part shall apply to copies of all contracts 
or agreements entered into by the U.S. Postal Service with any common 
carrier by rail or motor vehicle (including passenger-carrying vehicle), 
or freight forwarder, express company, or other person, for the surface 
transportation of mail as authorized by Chapters 50 and 52 of Title 39, 
United States Code, as revised and reenacted by the Postal 
Reorganization Act, 84 Stat. 719, 39 U.S.C. 5001 and 5201.

[36 FR 6426, Apr. 3, 1971]



Sec.  1332.2  Availability of contracts.

    Upon request from any member of the public to inspect a contract(s) 
or agreement(s) described in Sec.  1332.1, at any time between the 
effective date of such contract(s) or agreement(s) and 15 days prior 
thereto, the Board will obtain the requested contract(s) or agreement(s) 
from the U.S. Postal Service and make it (them) available for 
inspection.

[57 FR 23539, June 4, 1992]



Sec.  1332.3  Manner of submitting contracts.

    The U.S. Postal Service will submit to the Board, upon request, a 
copy of the requested contract(s) or agreement(s). Such contract(s) or 
agreement(s) will be submitted by facsimile transmission or messenger 
service where feasible, and, where such services are not feasible, by 
the fastest available mail service.

[57 FR 23539, June 4, 1992]

[[Page 236]]



CHAPTER XI_RESEARCH AND INNOVATIVE TECHNOLOGY ADMINISTRATION, DEPARTMENT 
                      OF TRANSPORTATION [RESERVED]



[[Page 237]]



   CHAPTER XII--TRANSPORTATION SECURITY ADMINISTRATION, DEPARTMENT OF 
                            HOMELAND SECURITY




  --------------------------------------------------------------------


  Editorial Note: Nomenclature changes to chapter XII appear at 68 FR 
49720, Aug. 19, 2003.

            SUBCHAPTER A--ADMINISTRATIVE AND PROCEDURAL RULES

Part                                                                Page
1500            Applicability, terms, and abbreviations.....         239
1502            Organization, functions, and procedures.....         239
1503            Investigative and enforcement procedures....         240
1507            Privacy Act-Exemptions......................         266
1510            Passenger civil aviation security service 
                    fees....................................         275
1511            Aviation security infrastructure fee........         278
1515            Appeal and waiver procedures for security 
                    threat assessments for individuals......         289

      SUBCHAPTER B--SECURITY RULES FOR ALL MODES OF TRANSPORTATION

1520            Protection of sensitive security information         298
1522            TSA-approved validation firms and validators         305

                  SUBCHAPTER C--CIVIL AVIATION SECURITY

1540            Civil aviation security: General rules......         314
1542            Airport security............................         326
1544            Aircraft operator security: Air carriers and 
                    commercial operators....................         343
1546            Foreign air carrier security................         370
1548            Indirect air carrier security...............         380
1549            Certified cargo screening program...........         387
1550            Aircraft security under general operating 
                    and flight rules........................         394
1552            Flight schools..............................         395
1560            Secure flight program.......................         401
1562            Operations in the Washington, DC, 
                    metropolitan area.......................         409

[[Page 238]]

         SUBCHAPTER D--MARITIME AND LAND TRANSPORTATION SECURITY

1570            General rules...............................         418
1572            Credentialing and security threat 
                    assessments.............................         421
1580            Rail transportation security................         438

[[Page 239]]



            SUBCHAPTER A_ADMINISTRATIVE AND PROCEDURAL RULES





PART 1500_APPLICABILITY, TERMS, AND ABBREVIATIONS--Table of Contents



Sec.
1500.1 Applicability.
1500.3 Terms and abbreviations used in this chapter.
1500.5 Rules of construction.

    Authority: 49 U.S.C. 114, 5103, 40113, 44901-44907, 44913-44914, 
44916-44918, 44935-44936, 44942, 46105.

    Source: 67 FR 8351, Feb. 22, 2002, unless otherwise noted.



Sec.  1500.1  Applicability.

    This chapter, this subchapter, and this part apply to all matters 
regulated by the Transportation Security Administration.



Sec.  1500.3  Terms and abbreviations used in this chapter.

    As used in this chapter:
    Administrator means the Under Secretary of Transportation for 
Security identified in 49 U.S.C. 114(b) who serves as the Administrator 
of the Transportation Security Administration.
    Person means an individual, corporation, company, association, firm, 
partnership, society, joint-stock company, or governmental authority. It 
includes a trustee, receiver, assignee, successor, or similar 
representative of any of them.
    Transportation Security Regulations (TSR) means the regulations 
issued by the Transportation Security Administration, in title 49 of the 
Code of Federal Regulations, chapter XII, which includes parts 1500 
through 1699.
    TSA means the Transportation Security Administration.
    United States, in a geographical sense, means the States of the 
United States, the District of Columbia, and territories and possessions 
of the United States, including the territorial sea and the overlying 
airspace.

[67 FR 8351, Feb. 22, 2002, as amended at 68 FR 49720, Aug. 19, 2003]



Sec.  1500.5  Rules of construction.

    (a) In this chapter, unless the context requires otherwise:
    (1) Words importing the singular include the plural.
    (2) Words importing the plural include the singular.
    (3) Words importing the masculine gender include the feminine.
    (b) In this chapter, the word:
    (1) ``Must'' is used in an imperative sense;
    (2) ``May'' is used in a permissive sense to state authority or 
permission to do the act prescribed, and the words ``no person may * * 
*'' or ``a person may not * * *'' mean that no person is required, 
authorized, or permitted to do the act prescribed; and
    (3) ``Includes'' means ``includes but is not limited to''.



PART 1502_ORGANIZATION, FUNCTIONS, AND PROCEDURES--Table of Contents



    Authority: 5 U.S.C. 3345, 49 U.S.C. 114, 40113, 44901-44907, 44913-
44914, 44916-44920, 44935-44936, 44942, 46101-46105, 45107, 46110.

    Source: 67 FR 48049, July 23, 2002, unless otherwise noted.



Sec.  1502.1  Responsibilities of the Administrator.

    (a) The Administrator is responsible for the planning, direction, 
and control of the Transportation Security Administration (TSA) and for 
security in all modes of transportation. The Administrator's 
responsibility includes carrying out chapter 449 of title 49, United 
States Code, relating to civil aviation security, and related research 
and development activities, and security responsibilities over other 
modes of transportation that are exercised by the Department of 
Transportation.
    (b) The Deputy Administrator is the ``first assistant'' to the 
Administrator for purposes of the Federal Vacancies Reform Act of 1998, 
and shall, in the event the Administrator dies, resigns, or is otherwise 
unable to perform the functions and duties of the office, serve as the 
Acting Administrator, subject to the limitations in the Federal 
Vacancies Reform Act of 1998. In the event of the absence or disability 
of both the

[[Page 240]]

Administrator and the Deputy Administrator, officials designated by 
TSA's internal order on succession shall serve as Acting Deputy 
Administrator and shall perform the duties of the Administrator, except 
for any non-delegable statutory and/or regulatory duties.



PART 1503_INVESTIGATIVE AND ENFORCEMENT PROCEDURES--Table of Contents



Subpart A [Reserved]

       Subpart B_Scope of Investigative and Enforcement Procedures

Sec.
1503.101 TSA requirements.
1503.103 Terms used in this part.

                   Subpart C_Investigative Procedures

1503.201 Reports of violations.
1503.203 Investigations.
1503.205 Records, documents, and reports.

                 Subpart D_Non-Civil Penalty Enforcement

1503.301 Warning notices and letters of correction.

             Subpart E_Assessment of Civil Penalties by TSA

1503.401 Maximum penalty amounts.
1503.403 Delegation of authority.
1503.405 Injunctions.
1503.407 Military personnel.
1503.409 Service of documents.
1503.411 Computation of time.
1503.413 Notice of Proposed Civil Penalty.
1503.415 Request for portions of the enforcement investigative report 
          (EIR).
1503.417 Final Notice of Proposed Civil Penalty and Order.
1503.419 Order Assessing Civil Penalty.
1503.421 Streamlined civil penalty procedures for certain security 
          violations.
1503.423 Consent orders.
1503.425 Compromise orders.
1503.427 Request for a formal hearing.
1503.429 Filing of documents with the Enforcement Docket Clerk.
1503.431 Certification of documents.

Subpart F [Reserved]

        Subpart G_Rules of Practice in TSA Civil Penalty Actions

1503.601 Applicability.
1503.603 Separation of functions.
1503.605 Appearances and rights of parties.
1503.607 Administrative law judges.
1503.609 Complaint.
1503.611 Answer.
1503.613 Consolidation and separation of cases.
1503.615 Notice of hearing.
1503.617 Extension of time.
1503.619 Intervention.
1503.621 Amendment of pleadings.
1503.623 Withdrawal of complaint or request for hearing.
1503.625 Waivers.
1503.627 Joint procedural and discovery schedule.
1503.629 Motions.
1503.631 Interlocutory appeals.
1503.633 Discovery.
1503.635 Evidence.
1503.637 Standard of proof.
1503.639 Burden of proof.
1503.641 Offer of proof.
1503.643 Public disclosure of evidence.
1503.645 Expert or opinion witnesses.
1503.647 Subpoenas.
1503.649 Witness fees.
1503.651 Record.
1503.653 Argument before the ALJ.
1503.655 Initial decision.
1503.657 Appeal from initial decision.
1503.659 Petition to reconsider or modify a final decision and order of 
          the TSA decision maker on appeal.
1503.661 Judicial review of a final order.

            Subpart H_Judicial Assessment of Civil Penalties

1503.701 Applicability of this subpart.
1503.703 Civil penalty letter; referral.

                       Subpart I_Formal Complaints

1503.801 Formal complaints.

    Authority: 18 U.S.C. 6002; 28 U.S.C. 2461 (note); 49 U.S.C. 114, 
20109, 31105, 40113-40114, 40119, 44901-44907, 46101-46107, 46109-46110, 
46301, 46305, 46311, 46313-46314; Sec. 1413(i), Public Law 110-53, 121 
Stat. 414 (6 U.S.C. 1142).

    Source: 74 FR 36039, July 21, 2009, unless otherwise noted.

Subpart A [Reserved]



       Subpart B_Scope of Investigative and Enforcement Procedures



Sec.  1503.101  TSA requirements.

    (a) The investigative and enforcement procedures in this part apply 
to TSA's investigation and enforcement of violations of TSA 
requirements.
    (b) For purposes of this part, the term TSA requirements means the 
following statutory provisions and a regulation prescribed or order 
issued under any of those provisions:

[[Page 241]]

    (1) Those provisions of title 49 U.S.C. administered by the 
Administrator; and
    (2) 46 U.S.C. chapter 701.



Sec.  1503.103  Terms used in this part.

    In addition to the terms in Sec.  1500.3 of this chapter, the 
following definitions apply in this part:
    Administrative law judge or ALJ means an ALJ appointed pursuant to 
the provisions of 5 U.S.C. 3105.
    Agency attorney means the Deputy Chief Counsel for Enforcement or an 
attorney that he or she designates. An agency attorney will not 
include--
    (1) Any attorney in the Office of the Chief Counsel who advises the 
TSA decision maker regarding an initial decision or any appeal to the 
TSA decision maker; or
    (2) Any attorney who is supervised in a civil penalty action by a 
person who provides such advice to the TSA decision maker in that action 
or a factually related action.
    Attorney means any person who is eligible to practice law in, and is 
a member in good standing of the bar of, the highest court of any State, 
possession, territory, or Commonwealth of the United States, or of the 
District of Columbia, and is not under any order suspending, enjoining, 
restraining, disbarring, or otherwise restricting him or her in the 
practice of law.
    Enforcement Investigative Report or EIR means a written report 
prepared by a TSA Inspector or other authorized agency official 
detailing the results of an inspection or investigation of a violation 
of a TSA requirement, including copies of any relevant evidence.
    Mail includes regular First Class U.S. mail service, U.S. certified 
mail, or U.S. registered mail.
    Party means the respondent or TSA.
    Personal delivery includes hand-delivery or use of a contract or 
express messenger service, including an overnight express courier 
service. Personal delivery does not include the use of Government 
interoffice mail service.
    Pleading means a complaint, an answer, motion and any amendment of 
these documents permitted under this subpart as well as any other 
written submission to the ALJ or a party during the course of the 
hearing proceedings.
    Properly addressed means a document that shows an address contained 
in agency records, a residential, business, or other address submitted 
by a person on any document provided under this part, or any other 
address obtained by other reasonable and available means.
    Public transportation agency means a publicly owned operator of 
public transportation eligible to receive Federal assistance under 49 
U.S.C. chapter 53.
    Respondent means the person named in a Notice of Proposed Civil 
Penalty, a Final Notice of Proposed Civil Penalty and Order, or a 
complaint.
    TSA decision maker means the Administrator, acting in the capacity 
of the decision maker on appeal, or any person to whom the Administrator 
has delegated the Administrator's decision-making authority in a civil 
penalty action. As used in this part, the TSA decision maker is the 
official authorized to issue a final decision and order of the 
Administrator in a civil penalty action.



                   Subpart C_Investigative Procedures



Sec.  1503.201  Reports of violations.

    (a) Any person who knows of a violation of a TSA requirement should 
report it to appropriate personnel of any TSA office.
    (b) TSA will review each report made under this section, together 
with any other information TSA may have that is relevant to the matter 
reported, to determine the appropriate response, including additional 
investigation or administrative or legal enforcement action.



Sec.  1503.203  Investigations.

    (a) General. The Administrator, or a designated official, may 
conduct investigations, hold hearings, issue subpoenas, require the 
production of relevant documents, records, and property, and take 
evidence and depositions.

[[Page 242]]

    (b) Delegation of authority. For the purpose of investigating 
alleged violations of a TSA requirement, the Administrator's authority 
may be exercised by the agency's various offices for matters within 
their respective areas for all routine investigations. When the 
compulsory processes of 49 U.S.C. 46104 are invoked, the Administrator's 
authority has been delegated to the Chief Counsel, each Deputy Chief 
Counsel, and in consultation with the Office of Chief Counsel, the 
Assistant Administrator for Security Operations, the Assistant 
Administrator for Transportation Sector Network Management, the 
Assistant Administrator for Inspections, the Assistant Administrator for 
Law Enforcement/Director of the Federal Air Marshal Service, each 
Special Agent in Charge, and each Federal Security Director.



Sec.  1503.205  Records, documents, and reports.

    Each record, document, and report that regulations issued by the 
Transportation Security Administration require to be maintained, 
exhibited, or submitted to the Administrator may be used in any 
investigation conducted by the Administrator; and, except to the extent 
the use may be specifically limited or prohibited by the section that 
imposes the requirement, the records, documents, and reports may be used 
in any civil penalty action or other legal proceeding.



                 Subpart D_Non-Civil Penalty Enforcement



Sec.  1503.301  Warning notices and letters of correction.

    (a) If TSA determines that a violation or an alleged violation of a 
TSA requirement does not require the assessment of a civil penalty, an 
appropriate official of the TSA may take administrative action in 
disposition of the case.
    (b) An administrative action under this section does not constitute 
a formal adjudication of the matter, and may be taken by issuing the 
alleged violator--
    (1) A ``Warning Notice'' that recites available facts and 
information about the incident or condition and indicates that it may 
have been a violation; or
    (2) A ``Letter of Correction'' that confirms the TSA decision in the 
matter and states the necessary corrective action the alleged violator 
has taken or agrees to take. If the agreed corrective action is not 
fully completed, legal enforcement action may be taken.
    (c) The issuance of a Warning Notice or Letter of Correction is not 
subject to appeal under this part.
    (d) In the case of a public transportation agency that is determined 
to be in violation of a TSA requirement, an appropriate TSA official 
will seek correction of the violation through a written ``Notice of 
Noncompliance'' to the public transportation agency giving the public 
transportation agency reasonable opportunity to correct the violation or 
propose an alternative means of compliance acceptable to TSA.
    (e) TSA will not take legal enforcement action against a public 
transportation agency under subpart E unless it has provided the Notice 
of Noncompliance described in paragraph (d) of this section and the 
public transportation agency fails to correct the violation or propose 
an alternative means of compliance acceptable to TSA within the 
timeframe provided in the notice.
    (f) TSA will not initiate civil enforcement action for violations of 
administrative and procedural requirements pertaining to the application 
for, and the expenditure of, funds awarded pursuant to transportation 
security grant programs under Public Law 110-53.



             Subpart E_Assessment of Civil Penalties by TSA



Sec.  1503.401  Maximum penalty amounts.

    (a) General. TSA may assess civil penalties not exceeding the 
following amounts against a person for the violation of a TSA 
requirement.
    (b) In general. Except as provided in paragraph (c) of this section, 
in the case of violation of title 49 U.S.C. or 46 U.S.C. chapter 701, or 
a regulation prescribed or order issued under any of those provisions, 
TSA may impose a civil penalty in the following amounts:
    (1) $10,000 per violation, up to a total of $50,000 per civil 
penalty action, in

[[Page 243]]

the case of an individual or small business concern, as defined in 
section 3 of the Small Business Act (15 U.S.C. 632); and
    (2) $10,000 per violation, up to a total of $400,000 per civil 
penalty action, in the case of any other person.
    (c) Certain aviation related violations. In the case of a violation 
of 49 U.S.C. chapter 449 (except sections 44902, 44903(d), 44907(a)-
(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), or 49 U.S.C. 46302 or 
46303, or a regulation prescribed or order issued under any of those 
provisions, TSA may impose a civil penalty in the following amounts:
    (1) $10,000 per violation, up to a total of $50,000 per civil 
penalty action, in the case of an individual (except an airman serving 
as an airman), any person not operating an aircraft for the 
transportation of passengers or property for compensation, or a small 
business concern, as defined in section 3 of the Small Business Act (15 
U.S.C. 632).
    (2) $25,000 per violation, up to a total of $400,000 per civil 
penalty action, in the case of a person operating an aircraft for the 
transportation of passengers or property for compensation (except an 
individual serving as an airman).
    (d) Inflation adjustment. TSA may adjust the maximum civil penalty 
amounts in conformity with the Federal Civil Penalties Inflation 
Adjustment Act of 1990, 28 U.S.C. 2461 (note). Minimum and maximum civil 
penalties within the jurisdiction of TSA are adjusted for inflation as 
follows:

 Table 1--Minimum and Maximum Civil Penalties--Adjusted for Inflation, Effective December 12, 2003 to August 20,
                                                      2009
----------------------------------------------------------------------------------------------------------------
                                                                              Maximum penalty
                                     Civil penalty     Minimum    Adjusted   amount when last    Maximum penalty
  United States Code  citation        description      penalty    minimum     set or adjusted        amount
                                                                  penalty     pursuant to law
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 46301(a)(1), (4)......  Violation of 49           N/A        N/A  $25,000 per         $25,000 per
                                   U.S.C. ch. 449                            violation, reset    violation.
                                   (except secs.                             12/12/2003.
                                   44902, 44903(d),
                                   44907(a)-(d)(1)(A
                                   ), 44907(d)(1)(C)-
                                   (f), 44908, and
                                   44909), or 49
                                   U.S.C. 46302 or
                                   46303, a
                                   regulation
                                   prescribed, or
                                   order issued
                                   thereunder by a
                                   person operating
                                   an aircraft for
                                   the
                                   transportation of
                                   passengers or
                                   property for
                                   compensation.
49 U.S.C. 46301(a)(1), (4)......  Violation of 49           N/A        N/A  $10,000 per         $10,000 per
                                   U.S.C. ch. 449                            violation, reset    violation.
                                   (except secs.                             12/12/2003.
                                   44902, 44903(d),
                                   44907(a)-(d)(1)(A
                                   ), 44907(d)(1)(C)-
                                   (f), 44908, and
                                   44909), or 49
                                   U.S.C. 46302 or
                                   46303, a
                                   regulation
                                   prescribed, or
                                   order issued
                                   thereunder by an
                                   individual
                                   (except an airman
                                   serving as an
                                   airman), any
                                   person not
                                   operating an
                                   aircraft for the
                                   transportation of
                                   passengers or
                                   property for
                                   compensation, or
                                   a small business
                                   concern.
----------------------------------------------------------------------------------------------------------------


         Table 2--Minimum and Maximum Civil Penalties--Adjusted for Inflation, Effective August 20, 2009
----------------------------------------------------------------------------------------------------------------
                                                                              Maximum penalty
                                     Civil penalty     Minimum    Adjusted   amount when last    Maximum penalty
   United States Code Citation        description      penalty    minimum     set or adjusted        amount
                                                                  penalty     pursuant to law
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 46301(a)(1), (4)......  Violation of 49           N/A        N/A  $25,000 per         $27,500 per
                                   U.S.C. ch. 449                            violation, reset    violation.
                                   (except secs.                             12/12/2003.
                                   44902, 44903(d),
                                   44907(a)-(d)(1)(A
                                   ), 44907(d)(1)(C)-
                                   (f), 44908, and
                                   44909), or 49
                                   U.S.C. 46302 or
                                   46303, a
                                   regulation
                                   prescribed, or
                                   order issued
                                   thereunder by a
                                   person operating
                                   an aircraft for
                                   the
                                   transportation of
                                   passengers or
                                   property for
                                   compensation.

[[Page 244]]

 
49 U.S.C. 46301(a)(1), (4)......  Violation of 49           N/A        N/A  $10,000 per         $11,000 per
                                   U.S.C. ch. 449                            violation, reset    violation.
                                   (except secs.                             12/12/2003.
                                   44902, 44903(d),
                                   44907(a)-(d)(1)(A
                                   ), 44907(d)(1)(C)-
                                   (f), 44908, and
                                   44909), or 49
                                   U.S.C. 46302 or
                                   46303, a
                                   regulation
                                   prescribed, or
                                   order issued
                                   thereunder by an
                                   individual
                                   (except an airman
                                   serving as an
                                   airman), any
                                   person not
                                   operating an
                                   aircraft for the
                                   transportation of
                                   passengers or
                                   property for
                                   compensation, or
                                   a small business
                                   concern.
49 U.S.C. 114(v)................  Violation of any          N/A        N/A  NA................  $10,000 per
                                   other provision                                               violation.
                                   of title 49
                                   U.S.C. or of 46
                                   U.S.C. ch. 701, a
                                   regulation
                                   prescribed, or
                                   order issued
                                   under thereunder.
----------------------------------------------------------------------------------------------------------------



Sec.  1503.403  Delegation of authority.

    The Administrator delegates the following authority to the Chief 
Counsel and the Deputy Chief Counsel for Enforcement, which authority 
may be redelegated as necessary:
    (a) To initiate and assess civil penalties under 49 U.S.C. 114 and 
46301 and this subpart for a violation a TSA requirement;
    (b) To compromise civil penalties initiated under this subpart; and
    (c) To refer cases to the Attorney General of the United States, or 
the delegate of the Attorney General, for the collection of civil 
penalties.



Sec.  1503.405  Injunctions.

    Whenever it is determined that a person has engaged, or is about to 
engage, in any act or practice constituting a violation of a TSA 
requirement, the Chief Counsel or the Deputy Chief Counsel for 
Enforcement may request the Attorney General of the United States, or 
the delegate of the Attorney General, to bring an action in the 
appropriate United States district court for such relief as is necessary 
or appropriate, including mandatory or prohibitive injunctive relief, 
interim equitable relief, and punitive damages, as provided by 49 U.S.C. 
114 and 46107.



Sec.  1503.407  Military personnel.

    If a report made under this part indicates that, while performing 
official duties, a member of the Armed Forces, or a civilian employee of 
the Department of Defense who is subject to the Uniform Code of Military 
Justice (10 U.S.C. chapter 47), has violated a TSA requirement, an 
agency official will send a copy of the report to the appropriate 
military authority for such disciplinary action as that authority 
considers appropriate and a report to the Administrator thereon.



Sec.  1503.409  Service of documents.

    (a) General. This section governs service of documents required to 
be made under this part.
    (b) Type of service. A person may serve documents by:
    (1) Personal delivery;
    (2) Mail, or
    (3) Electronic mail or facsimile transmission, if consented to in 
writing by the person served, except that such service is not effective 
if the party making service receives credible information indicating 
that the attempted service did not reach the person to be served.
    (c) If a party serves a pleading on another party during the course 
of hearing proceedings by electronic mail or facsimile transmission, the 
party making service must file with the Enforcement Docket Clerk a copy 
of the consent of the receiving party to accept such method of service.
    (d) Date of service. The date of service will be:
    (1) The date of personal delivery.

[[Page 245]]

    (2) If mailed, the mailing date stated on the certificate of 
service, the date shown on the postmark if there is no certificate of 
service, or other mailing date shown by other evidence if there is no 
certificate of service or postmark.
    (3) If sent by electronic mail or facsimile transmission, the date 
of transmission.
    (e) Valid service. A document served by mail or personal delivery 
that was properly addressed, was sent in accordance with this part, and 
that was returned, that was not claimed, or that was refused, is deemed 
to have been served in accordance with this part. The service will be 
considered valid as of the date and the time that the document was 
deposited with a contract or express messenger, the document was mailed, 
or personal delivery of the document was attempted and refused.
    (f) Presumption of service. There will be a presumption of service 
where a party or a person, who customarily receives mail, or receives it 
in the ordinary course of business, at either the person's residence or 
the person's principal place of business, acknowledges receipt of the 
document.
    (g) Additional time after service by mail. Whenever a party has a 
right or a duty to act or to make any response within a prescribed 
period after service by mail, or on a date certain after service by 
mail, 5 days will be added to the prescribed period.
    (h) Service of documents filed with the Enforcement Docket. A person 
must serve a copy of any document filed with the Enforcement Docket on 
each party and the ALJ or the chief ALJ if no judge has been assigned to 
the proceeding at the time of filing. Service on a party's attorney of 
record or a party's designated representative is service on the party.
    (i) Certificate of service. Each party must attach a certificate of 
service to any document tendered for filing with the Enforcement Docket 
Clerk. A certificate of service must consist of a statement, dated and 
signed by the person who effected service, of the name(s) of the 
person(s) served, and the method by which each person was served and the 
date that the service was made.
    (j) Service by the ALJ. The ALJ must serve a copy of each document 
he or she issues including, but not limited to, notices of pre-hearing 
conferences and hearings, rulings on motions, decisions, and orders, 
upon each party to the proceedings.



Sec.  1503.411  Computation of time.

    (a) This section applies to any period of time prescribed or allowed 
by this part, or by notice or order of an ALJ.
    (b) The date of an act, event, or default, after which a designated 
time period begins to run, is not included in a computation of time 
under this subpart.
    (c) The last day of a time period is included in a computation of 
time unless it is a Saturday, Sunday, a legal holiday, or a day on which 
the enforcement docket is officially closed. If the last day of the time 
period is a Saturday, Sunday, legal holiday, or a day on which the 
enforcement docket is officially closed, the time period runs until the 
end of the next day that is not a Saturday, Sunday, legal holiday, or a 
day on which the enforcement docket is officially closed.



Sec.  1503.413  Notice of Proposed Civil Penalty.

    (a) Issuance. TSA may initiate a civil penalty action under this 
section by serving a Notice of Proposed Civil Penalty on the person 
charged with a violation of a TSA requirement. TSA will serve the Notice 
of Proposed Civil Penalty on the individual charged with a violation or 
on the president of the corporation or company charged with a violation, 
or other representative or employee previously identified in writing to 
TSA as designated to receive such service. A corporation or company may 
designate in writing to TSA another person to receive service of any 
subsequent documents in that civil penalty action.
    (b) Contents. The Notice of Proposed Civil Penalty contains a 
statement of the facts alleged, the statute, regulation, or order 
allegedly violated, the amount of the proposed civil penalty, and a 
certificate of service.
    (c) Response. Not later than 30 days after receipt of the Notice of 
Proposed Civil Penalty, the person charged with a violation may take 
one, and only one, of the following options.

[[Page 246]]

    (1) Submit a certified check or money order in the amount of the 
proposed civil penalty made payable to Transportation Security 
Administration, at the address specified in the Notice of Proposed Civil 
Penalty, or make payment electronically through http://www.pay.gov.
    (2) Submit to the agency attorney who issued the Notice of Proposed 
Civil Penalty one of the following:
    (i) A written request that TSA issue an Order Assessing Civil 
Penalty in the amount stated in the Notice of Proposed Civil Penalty 
without further notice, in which case the person waives the right to 
request a Formal Hearing, and payment is due within 30 days of receipt 
of the Order.
    (ii) Written information and other evidence, including documents and 
witness statements, demonstrating that a violation of the regulations 
did not occur as alleged, or that the proposed penalty is not warranted 
by the circumstances.
    (iii) A written request to reduce the proposed civil penalty, the 
amount of requested reduction, together with any documents supporting a 
reduction of the proposed civil penalty, which reflect a current 
financial inability to pay or records showing that payment of the 
proposed civil penalty would prevent the person from continuing in 
business.
    (iv) A written request for an Informal Conference, at a date to be 
determined by the agency attorney, to discuss the matter with the agency 
attorney and to submit supporting evidence and information to the agency 
attorney before the date of the Informal Conference.
    (3) Submit to the agency attorney and to TSA's Enforcement Docket 
Clerk a written request for a Formal Hearing before an ALJ in accordance 
with subpart G of this part. TSA's Enforcement Docket Clerk is currently 
located at the United States Coast Guard (USCG) ALJ Docketing Center, 40 
S. Gay Street, Room 412, Baltimore, Maryland 21202-4022. If this 
location changes, TSA will provide notice of the change by notice in the 
Federal Register.



Sec.  1503.415  Request for portions of the enforcement investigative report (EIR).

    (a) Upon receipt of a Notice of Proposed Civil Penalty, a person 
charged with a violation of a TSA requirement, or a representative 
designated in writing by that person, may request from the agency 
attorney who issued the Notice of Proposed Civil Penalty portions of the 
relevant EIR that are not privileged (e.g., under the deliberative 
process, attorney work-product, or attorney-client privileges). This 
information will be provided for the sole purpose of providing the 
information necessary to prepare a response to the allegations contained 
in the Notice of Proposed Civil Penalty. Sensitive Security Information 
(SSI) contained in the EIR may be released pursuant to 49 CFR part 1520. 
Information released under this section is not produced under the 
Freedom of Information Act.
    (b) Any person not listed in paragraph (a) of this section that is 
interested in obtaining a copy of the EIR must submit a FOIA request 
pursuant to 5 U.S.C. 552, et seq., 49 CFR part 7, and any applicable DHS 
regulations. Portions of the EIR may be exempt from disclosure pursuant 
to FOIA.



Sec.  1503.417  Final Notice of Proposed Civil Penalty and Order.

    (a) Issuance. TSA may issue a Final Notice of Proposed Civil Penalty 
and Order (``Final Notice and Order'') to a person charged with a 
violation in the following circumstances:
    (1) The person has failed to respond to a Notice of Proposed Civil 
Penalty within 30 days after receipt of that notice.
    (2) The person requested an Informal Conference under Sec.  
1503.413(c)(2), but failed to attend the conference or continuation of 
the conference or provide the agency attorney with a written request 
showing good cause for rescheduling of the informal conference to a 
specified alternate date.
    (3) The parties have participated in an Informal Conference or other 
informal proceedings as provided in Sec.  1503.413(c)(2) and the parties 
have not agreed to compromise the action or the agency attorney has not 
agreed to

[[Page 247]]

withdraw the notice of proposed civil penalty.
    (b) Contents. The Final Notice and Order will contain a statement of 
the facts alleged, the law allegedly violated by the respondent, and the 
amount of the proposed civil penalty. The Final Notice and Order may 
reflect a modified allegation or proposed civil penalty as a result of 
information submitted to the agency attorney during the informal 
proceedings held under Sec.  1503.413(c)(2).



Sec.  1503.419  Order Assessing Civil Penalty.

    (a) Issuance pursuant to a settlement. TSA will issue an Order 
Assessing Civil Penalty if the parties have participated in an Informal 
Conference or other informal proceedings as provided in Sec.  
1503.413(c)(2) and agreed to a civil penalty amount in compromise of the 
matter, in which case the person waives the right to request a formal 
hearing, and payment is due within 30 days of receipt of the Order.
    (b) Automatic issuance. A Final Notice and Order automatically 
converts to an Order Assessing Civil Penalty if--
    (1) The person charged with a violation submits a certified check or 
money order in the amount reflected in the Final Notice and Order to 
Transportation Security Administration, to the address specified in the 
Final Notice and Order, or makes such payment electronically through 
http://www.pay.gov; or
    (2) The person fails to respond to the Final Notice and Order or 
request a formal hearing within 15 days after receipt of that notice.



Sec.  1503.421  Streamlined civil penalty procedures for certain security violations.

    (a) Notice of violation. TSA, at the agency's discretion, may 
initiate a civil penalty action through issuance of a Notice of 
Violation for violations described in the section and as otherwise 
provided by the Administrator. TSA may serve a Notice of Violation on an 
individual who violates a TSA requirement by presenting a weapon, 
explosive, or incendiary for screening at an airport or in checked 
baggage, where the amount of the proposed civil penalty is less than 
$5,000.
    (b) Contents. A Notice of Violation contains a statement of the 
charges, the amount of the proposed civil penalty, and an offer to 
settle the matter for a lesser specified penalty amount.
    (c) Response. Not later than 30 days after receipt of the Notice of 
Violation, the individual charged with a violation must respond to TSA 
by taking one, and only one, of the following options.
    (1) Submit a certified check or money order for the lesser specified 
penalty amount in the Notice of Violation, made payable to 
Transportation Security Administration and sent to the address specified 
in the Notice of Violation, or make such payment electronically through 
http://www.pay.gov.
    (2) Submit to the office identified in the Notice of Violation one 
of the following:
    (i) Written information and other evidence, including documents and 
witness statements, demonstrating that a violation of the regulations 
did not occur as alleged, or that the proposed penalty is not warranted 
by the circumstances.
    (ii) A written request to reduce the proposed civil penalty, the 
amount of requested reduction, together with any documents supporting a 
reduction of the proposed civil penalty, which reflect a current 
financial inability to pay or records showing that payment of the 
proposed civil penalty would prevent the person from continuing in 
business.
    (iii) A written request for an Informal Conference, at a date to be 
determined by an agency official, to discuss the matter with the agency 
official and to submit supporting evidence and information to the agency 
official before the date of the Informal Conference.
    (3) Submit to the office identified in the Notice of Violation and 
to TSA's Enforcement Docket Clerk a written request for a formal hearing 
before an ALJ in accordance with subpart G. A request for a formal 
hearing before an ALJ must be submitted to the address provided in Sec.  
1503.413(c)(3).
    (d) Final Notice of Violation and Civil Penalty Assessment Order. 
TSA may issue a Final Notice of Violation and Civil Penalty Assessment 
Order

[[Page 248]]

(``Final Notice and Order'') to the recipient of a Notice of Violation 
in the following circumstances:
    (1) The individual has failed to respond to a Notice of Violation 
within 30 days after receipt of that notice.
    (2) The individual requested an Informal Conference under Sec.  
1503.421(c)(2)(iii) but failed to attend the conference or continuation 
of the conference or provide the agency official with a written request 
showing good cause for rescheduling the informal conference to a 
specified alternate date.
    (3) The parties have participated in an Informal Conference or other 
informal proceedings as provided in Sec.  1503.421(c)(2) and the parties 
have not agreed to compromise the action or the agency official has not 
agreed to withdraw the Notice of Violation.
    (e) Order Assessing Civil Penalty. A Final Notice and Order 
automatically converts to an Order Assessing Civil Penalty if--
    (1) The individual charged with a violation submits a certified 
check or money order in the amount reflected in the Final Notice and 
Order to Transportation Security Administration at the address specified 
in the Final Notice and Order, or makes such payment electronically 
through http://www.pay.gov; or
    (2) The individual fails to respond to the Final Notice and Order or 
request a formal hearing within 15 days after receipt of that notice.
    (f) Delegation of authority. The authority of the Administrator, 
under 49 U.S.C. 46301, to initiate, negotiate, and settle civil penalty 
actions under this section is delegated to the Assistant Administrator 
for Security Operations. This authority may be further delegated.



Sec.  1503.423  Consent orders.

    (a) Issuance. At any time before the issuance of an Order Assessing 
Civil Penalty under this subpart, an agency attorney and a person 
subject to a Notice of Proposed Civil Penalty, or an agency official and 
a person subject to a Notice of Violation, may agree to dispose of the 
case by the issuance of a consent order by TSA.
    (b) Contents. A consent order contains the following:
    (1) An admission of all jurisdictional facts.
    (2) An admission of agreed-upon allegations.
    (3) A statement of the law violated.
    (4) A finding of violation.
    (5) An express waiver of the right to further procedural steps and 
of all rights to administrative and judicial review.



Sec.  1503.425  Compromise orders.

    (a) Issuance. At any time before the issuance of an Order Assessing 
Civil Penalty under this subpart, an agency attorney and a person 
subject to a Notice of Proposed Civil Penalty, or an agency official and 
a person subject to a Notice of Violation, may agree to dispose of the 
case by the issuance of a compromise order by TSA.
    (b) Contents. A compromise order contains the following:
    (1) All jurisdictional facts.
    (2) All allegations.
    (3) A statement that the person agrees to pay the civil penalty 
specified.
    (4) A statement that TSA makes no finding of a violation.
    (5) A statement that the compromise order will not be used as 
evidence of a prior violation in any subsequent civil penalty 
proceeding.



Sec.  1503.427  Request for a formal hearing.

    (a) General. Any respondent may request a formal hearing, pursuant 
to Sec.  1503.413(c)(3) or Sec.  1503.421(c)(3), to be conducted in 
accordance with the procedures in subpart G of this part. The filing of 
a request for a formal hearing does not guarantee a person an 
opportunity to appear before an ALJ in person, because the ALJ may issue 
an initial decision or dispositive order resolving the case prior to the 
commencement of the formal hearing.
    (b) Form. The person submitting a request for hearing must date and 
sign the request, and must include his or her current address. The 
request for hearing must be typewritten or legibly handwritten.
    (c) Submission of request. A person requesting a hearing must file a 
written request for a hearing with the Enforcement Docket Clerk in 
accordance with

[[Page 249]]

Sec.  1503.429 and must serve a copy of the request on the agency 
attorney or other agency official who issued the Notice of Proposed 
Civil Penalty, or Notice of Violation, as applicable, and any other 
party, in accordance with Sec.  1503.429.



Sec.  1503.429  Filing of documents with the Enforcement Docket Clerk.

    (a) General. This section governs filing of documents with the 
Enforcement Docket Clerk when required under this part.
    (b) Type of service. A person must file a document with the 
Enforcement Docket Clerk by delivering two copies of the document as 
follows:
    (1) By personal delivery or mail, to United States Coast Guard 
(USCG) ALJ Docketing Center, ATTN: Enforcement Docket Clerk, at the 
address specified in Sec.  1503.413(c)(3).
    (2) By electronic mail, to [email protected]. If this e-
mail address changes, TSA will provide notice of the change by notice in 
the Federal Register.
    (3) By facsimile transmission, to 410-962-1746. If this number 
changes, TSA will provide notice of the change by notice in the Federal 
Register.
    (c) Contents. Unless otherwise specified in this part, each document 
must contain a short, plain statement of the facts supporting the 
person's position and a brief statement of the action requested in the 
document. Each document must be typewritten or legibly handwritten.
    (d) Date of filing. The date of filing will be as follows:
    (1) The date of personal delivery.
    (2) If mailed, the mailing date stated on the certificate of 
service, the date shown on the postmark if there is no certificate of 
service, or other mailing date shown by other evidence if there is no 
certificate of service or postmark.
    (3) If sent by electronic mail or facsimile transmission, the date 
of transmission.
    (e) Service of documents filed with the Enforcement Docket. A person 
must serve a copy of any document filed with the Enforcement Docket on 
each party and the ALJ or the chief ALJ if no judge has been assigned to 
the proceeding at the time of filing. Service on a party's attorney of 
record or a party's designated representative is service on the party.



Sec.  1503.431  Certification of documents.

    (a) General. This section governs each document tendered for filing 
with the Enforcement Docket Clerk under this part.
    (b) Signature required. The attorney of record, the party, or the 
party's representative must sign each document tendered for filing with 
the Enforcement Docket Clerk, or served on the ALJ, the TSA decision 
maker on appeal, or each party.
    (c) Effect of signing a document. By signing a document, the 
attorney of record, the party, or the party's representative certifies 
that he or she has read the document and, based on reasonable inquiry 
and to the best of that person's knowledge, information, and belief, the 
document is--
    (1) Consistent with the rules in this part;
    (2) Warranted by existing law or that a good faith and nonfrivolous 
argument exists for extension, modification, or reversal of existing 
law;
    (3) Not unreasonable or unduly burdensome or expensive, not made to 
harass any person, not made to cause unnecessary delay, not made to 
cause needless increase in the cost of the proceedings, or for any other 
improper purpose; and
    (4) Supported by evidence, and any denials of factual contentions 
are warranted on the evidence.
    (d) Sanctions. On motion of a party, if the ALJ or TSA decision 
maker finds that any attorney of record, the party, or the party's 
representative has signed a document in violation of this section, the 
ALJ or the TSA decision maker, as appropriate, will do the following:
    (1) Strike the pleading signed in violation of this section.
    (2) Strike the request for discovery or the discovery response 
signed in violation of this section and preclude further discovery by 
the party.
    (3) Deny the motion or request signed in violation of this section.
    (4) Exclude the document signed in violation of this section from 
the record.

[[Page 250]]

    (5) Dismiss the interlocutory appeal and preclude further appeal on 
that issue by the party who filed the appeal until an initial decision 
has been entered on the record.
    (6) Dismiss the appeal of the ALJ's initial decision to the TSA 
decision maker.

Subpart F [Reserved]



        Subpart G_Rules of Practice in TSA Civil Penalty Actions



Sec.  1503.601  Applicability.

    (a) This subpart applies to a civil penalty action in which the 
requirements of paragraphs (a)(1) through (a)(3) of this section are 
satisfied.
    (1) There is an alleged violation of a TSA requirement.
    (2) The amount in controversy does not exceed--
    (i) $50,000 if the violation was committed by an individual or a 
small business concern;
    (ii) $400,000 if the violation was committed by any other person.
    (3) The person charged with the violation has requested a hearing in 
accordance with Sec.  1503.427 of this part.
    (b) This subpart does not apply to the adjudication of the validity 
of any TSA rule or other requirement under the U.S. Constitution, the 
Administrative Procedure Act, or any other law.



Sec.  1503.603  Separation of functions.

    (a) Civil penalty proceedings, including hearings, will be 
prosecuted only by an agency attorney, except to the extent another 
agency official is permitted to issue and prosecute civil penalties 
under Sec.  1503.421 of this part.
    (b) An agency employee engaged in the performance of investigative 
or prosecutorial functions in a civil penalty action must not, in that 
case or a factually related case, participate or give advice in a 
decision by the ALJ or by the TSA decision maker on appeal, except as 
counsel or a witness in the public proceedings.
    (c) The Chief Counsel or an agency attorney not covered by paragraph 
(b) of this section will advise the TSA decision maker regarding an 
initial decision or any appeal of a civil penalty action to the TSA 
decision maker.



Sec.  1503.605  Appearances and rights of parties.

    (a) Any party may appear and be heard in person.
    (b) Any party may be accompanied, represented, or advised by an 
attorney or representative designated by the party and may be examined 
by that attorney or representative in any proceeding governed by this 
subpart. An attorney or representative who represents a respondent and 
has not previously filed a pleading in the matter must file a notice of 
appearance in the action, in the manner provided in Sec.  1503.429, and 
must serve a copy of the notice of appearance on each party, in the 
manner provided in Sec.  1503.409, before participating in any 
proceeding governed by this subpart. The attorney or representative must 
include the name, address, and telephone number of the attorney or 
representative in the notice of appearance.



Sec.  1503.607  Administrative law judges.

    (a) Powers of an ALJ. In accordance with the rules of this subpart, 
an ALJ may:
    (1) Give notice of, and hold, prehearing conferences and hearings.
    (2) Issue scheduling orders and other appropriate orders regarding 
discovery or other matters that come before him or her consistent with 
the rules of this subpart.
    (3) Administer oaths and affirmations.
    (4) Issue subpoenas authorized by law.
    (5) Rule on offers of proof.
    (6) Receive relevant and material evidence.
    (7) Regulate the course of the hearing in accordance with the rules 
of this subpart.
    (8) Hold conferences to settle or to simplify the issues on his or 
her own motion or by consent of the parties.
    (9) Rule on procedural motions and requests.
    (10) Make findings of fact and conclusions of law, and issue an 
initial decision.

[[Page 251]]

    (11) Strike unsigned documents unless omission of the signature is 
corrected promptly after being called to the attention of the attorney 
or party.
    (12) Order payment of witness fees in accordance with Sec.  
1503.649.
    (b) Limitations on the power of the ALJ. (1) The ALJ may not:
    (i) Issue an order of contempt.
    (ii) Award costs to any party.
    (iii) Impose any sanction not specified in this subpart.
    (iv) Adopt or follow a standard of proof or procedure contrary to 
that set forth in this subpart.
    (v) Decide issues involving the validity of a TSA regulation, order, 
or other requirement under the U.S. Constitution, the Administrative 
Procedure Act, or other law.
    (2) If the ALJ imposes any sanction not specified in this subpart, a 
party may file an interlocutory appeal of right pursuant to Sec.  
1503.631(c)(3).
    (3) This section does not preclude an ALJ from issuing an order that 
bars a person from a specific proceeding based on a finding of 
obstreperous or disruptive behavior in that specific proceeding.
    (c) Disqualification. The ALJ may disqualify himself or herself at 
any time. A party may file a motion, pursuant to Sec.  1503.629(f)(6), 
requesting that an ALJ be disqualified from the proceedings.



Sec.  1503.609  Complaint.

    (a) Filing. The agency attorney must file the complaint with the 
Enforcement Docket Clerk in accordance with Sec.  1503.429, or may file 
a written motion pursuant to Sec.  1503.629(f)(2)(i) instead of filing a 
complaint, not later than 30 days after receipt by the agency attorney 
of a request for hearing. The agency attorney should suggest a location 
for the hearing when filing the complaint.
    (b) Contents. A complaint must set forth the facts alleged, any 
statute, regulation, or order allegedly violated by the respondent, and 
the proposed civil penalty in sufficient detail to provide notice of any 
factual or legal allegation and proposed civil penalty.



Sec.  1503.611  Answer.

    (a) Filing. A respondent must file a written answer to the complaint 
in accordance with Sec.  1503.429, or may file a written motion pursuant 
to Sec.  1503.629(f)(1)-(4) instead of filing an answer, not later than 
30 days after service of the complaint. Subject to paragraph (c) of this 
section, the answer may be in the form of a letter, but must be dated 
and signed by the person responding to the complaint. An answer may be 
typewritten or may be legibly handwritten. The person filing an answer 
should suggest a location for the hearing when filing the answer.
    (b) Contents. An answer must specifically state any affirmative 
defense that the respondent intends to assert at the hearing. A person 
filing an answer may include a brief statement of any relief requested 
in the answer.
    (c) Specific denial of allegations required. A person filing an 
answer must admit, deny, or state that the person is without sufficient 
knowledge or information to admit or deny, each numbered paragraph of 
the complaint. Any statement or allegation contained in the complaint 
that is not specifically denied in the answer may be deemed an admission 
of the truth of that allegation. A general denial of the complaint is 
deemed a failure to file an answer.
    (d) Failure to file answer. A person's failure to file an answer 
without good cause, as determined by the ALJ, will be deemed an 
admission of the truth of each allegation contained in the complaint.



Sec.  1503.613  Consolidation and separation of cases.

    (a) Consolidation. If two or more actions involve common questions 
of law or fact, the Chief Administrative Law Judge may do the following:
    (1) Order a joint hearing or trial on any or all such questions.
    (2) Order the consolidation of such actions.
    (3) Otherwise make such orders concerning the proceedings as may 
tend to avoid unnecessary costs or delay.
    (b) Consolidation shall not affect the applicability of this part. 
Consolidation of two or more actions that individually meet the 
jurisdictional amounts set forth in Sec.  1503.601(a)(2) shall not cause 
the resulting consolidated action to come under the exclusive 
jurisdiction of the district courts of the United

[[Page 252]]

States as specified in 49 U.S.C. 46301(d)(4)(A).
    (c) Separate trials. The Chief Administrative Law Judge, in 
furtherance of convenience or to avoid prejudice, or when separate 
trials will be conducive to expedition and economy, may order a separate 
trial of any claim, or of any separate issue, or any number of claims or 
issues.



Sec.  1503.615  Notice of hearing.

    (a) Notice. The ALJ must give each party at least 60 days notice of 
the date, time, and location of the hearing. With the consent of the 
ALJ, the parties may agree to hold the hearing on an earlier date than 
the date specified in the notice of hearing.
    (b) Date, time, and location of the hearing. The ALJ to whom the 
proceedings have been assigned must set a reasonable date, time, and 
location for the hearing. The ALJ must consider the need for discovery 
and any joint procedural or discovery schedule submitted by the parties 
when determining the hearing date. The ALJ must give due regard to the 
convenience of the parties, the location where the majority of the 
witnesses reside or work, and whether the location is served by a 
scheduled air carrier.



Sec.  1503.617  Extension of time.

    (a) Oral requests. The parties may agree to extend for a reasonable 
period the time for filing a document under this subpart. If the parties 
agree, the ALJ must grant one extension of time to each party. The party 
seeking the extension of time must submit a draft order to the ALJ to be 
signed by the ALJ and filed with the Enforcement Docket Clerk. The ALJ 
may grant additional oral requests for an extension of time where the 
parties agree to the extension.
    (b) Written motion. A party must file a written motion for an 
extension of time not later than 7 days before the document is due 
unless the party shows good cause for the late filing. The ALJ may grant 
the extension of time if the party shows good cause.
    (c) Request for continuance of hearing. Either party may request in 
writing a continuance of the date of a hearing, for good cause shown, no 
later than seven days before the scheduled date of the hearing. Good 
cause does not include a scheduling conflict involving the parties or 
their attorneys which by due diligence could have been foreseen.
    (d) Failure to rule. If the ALJ fails to rule on a written motion 
for an extension of time by the date the document was due, the motion 
for an extension of time is deemed granted for no more than 20 days 
after the original date the document was to be filed. If the ALJ fails 
to rule on a request for continuance by the scheduled hearing date, the 
request is deemed granted for no more than 10 days after the scheduled 
hearing date.



Sec.  1503.619  Intervention.

    (a) A person may file a motion for leave to intervene as a party in 
a civil penalty action. The person must file a motion for leave to 
intervene not later than 10 days before the hearing unless the person 
shows good cause for the late filing.
    (b) If the ALJ finds that intervention will not unduly broaden the 
issues or delay the proceedings, the ALJ may grant a motion for leave to 
intervene if the person will be bound by any order or decision entered 
in the action or the person has a property, financial, or other 
legitimate interest that may not be addressed adequately by the parties. 
The ALJ may determine the extent to which an intervenor may participate 
in the proceedings.



Sec.  1503.621  Amendment of pleadings.

    (a) Filing and service. A party must file the amendment with the 
Enforcement Docket Clerk and must serve a copy of the amendment on the 
ALJ and all parties to the proceeding.
    (b) Time. A party must file an amendment to a complaint or an answer 
within the following:
    (1) Not later than 15 days before the scheduled date of a hearing, a 
party may amend a complaint or an answer without the consent of the ALJ.
    (2) Less than 15 days before the scheduled date of a hearing, the 
ALJ may allow amendment of a complaint or an answer only for good cause 
shown in a motion to amend.
    (c) Responses. The ALJ must allow a reasonable time, but not more 
than 20

[[Page 253]]

days from the date of filing, for other parties to respond if an 
amendment to a complaint, answer, or other pleading has been filed with 
the ALJ.



Sec.  1503.623  Withdrawal of complaint or request for hearing.

    At any time before or during a hearing, an agency attorney may 
withdraw a complaint or a respondent may withdraw a request for a 
hearing without the consent of the ALJ. If an agency attorney withdraws 
the complaint or a party withdraws the request for a hearing and the 
answer, the ALJ must dismiss the proceedings under this subpart with 
prejudice, unless the withdrawing party shows good cause for dismissal 
without prejudice, except that a party may withdraw a request for 
hearing without prejudice at any time before a complaint has been filed.



Sec.  1503.625  Waivers.

    Waivers of any rights provided by statute or regulation must be in 
writing or by stipulation made at a hearing and entered into the record. 
The parties must set forth the precise terms of the waiver and any 
conditions.



Sec.  1503.627  Joint procedural or discovery schedule.

    (a) General. The parties may agree to submit a schedule for filing 
all prehearing motions, a schedule for conducting discovery in the 
proceedings, or a schedule that will govern all prehearing motions and 
discovery in the proceedings.
    (b) Form and content of schedule. If the parties agree to a joint 
procedural or discovery schedule, one of the parties must file the joint 
schedule with the ALJ, setting forth the dates to which the parties have 
agreed, and must serve a copy of the joint schedule on each party.
    (1) The joint schedule may include, but need not be limited to, 
requests for discovery, any objections to discovery requests, responses 
to discovery requests to which there are no objections, submission of 
prehearing motions, responses to prehearing motions, exchange of 
exhibits to be introduced at the hearing, and a list of witnesses that 
may be called at the hearing.
    (2) Each party must sign the original joint schedule to be filed 
with the Enforcement Docket Clerk.
    (c) Time. The parties may agree to submit all prehearing motions and 
responses and may agree to close discovery in the proceedings under the 
joint schedule within a reasonable time before the date of the hearing, 
but not later than 15 days before the hearing.
    (d) Order establishing joint schedule. The ALJ must approve the 
joint schedule filed by the parties. One party must submit a draft order 
establishing a joint schedule to the ALJ to be signed by the ALJ and 
filed with the Enforcement Docket Clerk.
    (e) Disputes. The ALJ must resolve disputes regarding discovery or 
disputes regarding compliance with the joint schedule as soon as 
possible so that the parties may continue to comply with the joint 
schedule.
    (f) Sanctions for failure to comply with joint schedule. If a party 
fails to comply with the ALJ's order establishing a joint schedule, the 
ALJ may direct that party to comply with a motion or discovery request 
or, limited to the extent of the party's failure to comply with a motion 
or discovery request, the ALJ may do the following:
    (1) Strike that portion of a party's pleadings.
    (2) Preclude prehearing or discovery motions by that party.
    (3) Preclude admission of that portion of a party's evidence at the 
hearing.
    (4) Preclude that portion of the testimony of that party's witnesses 
at the hearing.



Sec.  1503.629  Motions.

    (a) General. A party applying for an order or ruling not 
specifically provided in this subpart must do so by motion. A party must 
comply with the requirements of this section when filing a motion. A 
party must serve a copy of each motion on each party.
    (b) Form and contents. A party must state the relief sought by the 
motion and the particular grounds supporting that relief. If a party has 
evidence in support of a motion, the party must attach any supporting 
evidence, including affidavits, to the motion.

[[Page 254]]

    (c) Filing of motions. A motion made prior to the hearing must be in 
writing or orally on the record. Unless otherwise agreed by the parties 
or for good cause shown, a party must file any prehearing motion, and 
must serve a copy on each party, not later than 30 days before the 
hearing. Motions introduced during a hearing may be made orally on the 
record unless the ALJ directs otherwise.
    (d) Reply to motions. Any party may file a reply, with affidavits or 
other evidence in support of the reply, not later than 30 days after 
service of a written motion on that party. When a motion is made during 
a hearing, the reply may be made at the hearing on the record, orally or 
in writing, within a reasonable time determined by the ALJ. At the 
discretion of the ALJ, the moving party may file a response to the 
reply.
    (e) Rulings on motions. The ALJ must rule on all motions as follows:
    (1) Discovery motions. The ALJ must resolve all pending discovery 
motions not later than 10 days before the hearing.
    (2) Prehearing motions. The ALJ must resolve all pending prehearing 
motions not later than 7 days before the hearing. If the ALJ issues a 
ruling or order orally, the ALJ must serve a written copy of the ruling 
or order, within 3 days, on each party. In all other cases, the ALJ must 
issue rulings and orders in writing and must serve a copy of the ruling 
or order on each party.
    (3) Motions made during the hearing. The ALJ may issue rulings and 
orders on motions made during the hearing orally. Oral rulings or orders 
on motions must be made on the record.
    (f) Specific motions. A party may file, but is not limited to, the 
following motions with the Enforcement Docket Clerk:
    (1) Motion to dismiss for insufficiency. A respondent may file a 
motion to dismiss the complaint for insufficiency instead of filing an 
answer. If the ALJ denies the motion to dismiss the complaint for 
insufficiency, the respondent must file an answer not later than 20 days 
after service of the ALJ's denial of the motion. A motion to dismiss the 
complaint for insufficiency must show that the complaint fails to state 
a violation of a TSA requirement. If the ALJ grants the motion to 
dismiss the complaint for insufficiency, the agency attorney may amend 
the complaint in accordance with Sec.  1503.621.
    (2) Motion to dismiss. A party may file a motion to dismiss, 
specifying the grounds for dismissal. If an ALJ grants a motion to 
dismiss in part, a party may appeal the ALJ's ruling on the motion to 
dismiss under Sec.  1503.631(b).
    (i) Motion to dismiss a request for a hearing. An agency attorney 
may file a motion to dismiss a request for a hearing as untimely instead 
of filing a complaint. If the motion to dismiss is not granted, the 
agency attorney must file the complaint and must serve a copy of the 
complaint on each party not later than 20 days after service of the 
ALJ's ruling or order on the motion to dismiss. If the motion to dismiss 
is granted and the proceedings are terminated without a hearing, the 
respondent may file an appeal pursuant to Sec.  1503.657. If required by 
the decision on appeal, the agency attorney must file a complaint and 
must serve a copy of the complaint on each party not later than 30 days 
after service of the decision on appeal.
    (ii) Motion to dismiss a complaint. A respondent may file a motion 
to dismiss a complaint instead of filing an answer, on the ground that 
the complaint was not timely filed or on other grounds. If the ALJ does 
not grant the motion to dismiss, the respondent must file an answer and 
must serve a copy of the answer on each party not later than 30 days 
after service of the ALJ's ruling or order on the motion to dismiss. If 
the ALJ grants the motion to dismiss and the proceedings are terminated 
without a hearing, the agency attorney may file an appeal pursuant to 
Sec.  1503.657. If required by the decision on appeal, the respondent 
must file an answer and must serve a copy of the answer on each party 
not later than 20 days after service of the decision on appeal.
    (iii) Motion to dismiss based on settlement. A party may file a 
motion to dismiss based on a mutual settlement of the parties.
    (3) Motion for more definite statement. A party may file a motion 
for more definite statement of any pleading that requires a response 
under this subpart.

[[Page 255]]

A party must set forth, in detail, the indefinite or uncertain 
allegations contained in a complaint or response to any pleading and 
must submit the details that the party believes would make the 
allegation or response definite and certain.
    (i) Complaint. A respondent may file a motion requesting a more 
definite statement of the allegations contained in the complaint instead 
of filing an answer. If the ALJ grants the motion, the agency attorney 
must supply a more definite statement not later than 15 days after 
service of the ruling granting the motion. If the agency attorney fails 
to supply a more definite statement, the ALJ must strike the allegations 
in the complaint to which the motion is directed. If the ALJ denies the 
motion, the respondent must file an answer and must serve a copy of the 
answer on each party not later than 20 days after service of the order 
of denial.
    (ii) Answer. An agency attorney may file a motion requesting a more 
definite statement if an answer fails to respond clearly to the 
allegations in the complaint. If the ALJ grants the motion, the 
respondent must supply a more definite statement not later than 15 days 
after service of the ruling on the motion. If the respondent fails to 
supply a more definite statement, the ALJ must strike those statements 
in the answer to which the motion is directed. The respondent's failure 
to supply a more definite statement may be deemed an admission of 
unanswered allegations in the complaint.
    (4) Motion to strike. Any party may move to strike any insufficient 
allegation or defense, or any redundant, immaterial, or irrelevant 
matter in a pleading. A party must file a motion to strike before a 
response is required under this subpart or, if a response is not 
required, not later than 10 days after service of the pleading.
    (5) Motion for decision. A party may move for decision, regarding 
all or any part of the proceedings, at any time before the ALJ has 
issued an initial decision in the proceedings. A party may include with 
a motion for decision affidavits as well as any other evidence in 
support of the motion. The ALJ must grant a party's motion for decision 
if the pleadings, depositions, answers to interrogatories, admissions, 
affidavits, matters that the ALJ has officially noticed, or evidence 
introduced during the hearing show that there is no genuine issue of 
material fact and that the party making the motion is entitled to a 
decision as a matter of law. The party moving for decision has the 
burden of showing that there is no genuine issue of material fact.
    (6) Motion for disqualification. A party may file the motion at any 
time after the ALJ has been assigned to the proceedings but must make 
the motion before the ALJ files an initial decision in the proceedings.
    (i) Motion and supporting affidavit. A party must state the grounds 
for disqualification, including, but not limited to, personal bias, 
pecuniary interest, or other factors supporting disqualification, in the 
motion for disqualification. A party must submit an affidavit with the 
motion for disqualification that sets forth, in detail, the matters 
alleged to constitute grounds for disqualification.
    (ii) Answer. A party must respond to the motion for disqualification 
not later than 5 days after service of the motion for disqualification.
    (iii) Decision on motion for disqualification. The ALJ must render a 
decision on the motion for disqualification not later than 20 days after 
the motion has been filed. If the ALJ finds that the motion for 
disqualification and supporting affidavit show a basis for 
disqualification, the ALJ must withdraw from the proceedings 
immediately. If the ALJ finds that disqualification is not warranted, 
the ALJ must deny the motion and state the grounds for the denial on the 
record. If the ALJ fails to rule on a party's motion for 
disqualification within 20 days after the motion has been filed, the 
motion is deemed granted.
    (iv) Appeal. A party may appeal the ALJ's denial of the motion for 
disqualification in accordance with Sec.  1503.631(b).

[74 FR 36039, July 21, 2009, as amended at 75 FR 58333, Sept. 24, 2010]



Sec.  1503.631  Interlocutory appeals.

    (a) General. Unless otherwise provided in this subpart, a party may 
not appeal a ruling or decision of the ALJ

[[Page 256]]

to the TSA decision maker until the initial decision has been entered on 
the record. A decision or order of the TSA decision maker on the 
interlocutory appeal does not constitute a final order of the 
Administrator for the purposes of judicial appellate review under 49 
U.S.C. 46110.
    (b) Interlocutory appeal for cause. If a party files a written 
request for an interlocutory appeal for cause with the ALJ, or orally 
requests an interlocutory appeal for cause, the proceedings are stayed 
until the ALJ issues a decision on the request. If the ALJ grants the 
request, the proceedings are stayed until the TSA decision maker issues 
a decision on the interlocutory appeal. The ALJ must grant an 
interlocutory appeal for cause if a party shows that delay of the appeal 
would be detrimental to the public interest or would result in undue 
prejudice to any party.
    (c) Interlocutory appeals of right. If a party notifies the ALJ of 
an interlocutory appeal of right, the proceedings are stayed until the 
TSA decision maker issues a decision on the interlocutory appeal. A 
party may file an interlocutory appeal, without the consent of the ALJ, 
before an initial decision has been entered in the following cases:
    (1) A ruling or order by the ALJ barring a person from the 
proceedings.
    (2) Failure of the ALJ to dismiss the proceedings in accordance with 
Sec.  1503.623.
    (3) A ruling or order by the ALJ in violation of Sec.  1503.607(b).
    (4) A ruling or order by the ALJ regarding public access to a 
particular docket or documents.
    (d) Procedure. Not later than 10 days after the ALJ's decision 
forming the basis of an interlocutory appeal of right or not later than 
10 days after the ALJ's decision granting an interlocutory appeal for 
cause, a party must file a notice of interlocutory appeal, with 
supporting documents, and the party must serve a copy of the notice and 
supporting documents on each party. Not later than 10 days after service 
of the appeal brief, a party must file a reply brief, if any, and the 
party must serve a copy of the reply brief on each party. The TSA 
decision maker must render a decision on the interlocutory appeal, on 
the record and as a part of the decision in the proceedings, within a 
reasonable time after receipt of the interlocutory appeal.
    (e) Frivolous appeals. The TSA decision maker may reject frivolous, 
repetitive, or dilatory appeals, and may issue an order precluding one 
or more parties from making further interlocutory appeals in a 
proceeding in which there have been frivolous, repetitive, or dilatory 
interlocutory appeals.

[74 FR 36039, July 21, 2009, as amended at 75 FR 58334, Sept. 24, 2010]



Sec.  1503.633  Discovery.

    (a) Initiation of discovery. Any party may initiate discovery 
described in this section, without the consent or approval of the ALJ, 
at any time after a complaint has been filed in the proceedings.
    (b) Methods of discovery. The following methods of discovery are 
permitted under this section: depositions on oral examination or written 
questions of any person; written interrogatories directed to a party; 
requests for production of documents or tangible items to any person; 
and requests for admission by a party. A party is not required to file 
written discovery requests and responses with the ALJ or the Enforcement 
Docket Clerk. In the event of a discovery dispute, a party must attach a 
copy of these documents in support of a motion made under this section.
    (c) Service on the agency. A party must serve each discovery request 
directed to the agency or any agency employee on the agency attorney of 
record.
    (d) Time for response to discovery requests. Unless otherwise 
directed by this subpart, agreed by the parties, or by order of the ALJ, 
a party must respond to a request for discovery, including filing 
objections to a request for discovery, not later than 30 days after 
service of the request.
    (e) Scope of discovery. Subject to the limits on discovery set forth 
in paragraph (f) of this section, a party may discover any matter that 
is not privileged and that is relevant to the subject matter of the 
proceeding. A party may discover information that relates

[[Page 257]]

to the claim or defense of any party including the existence, 
description, nature, custody, condition, and location of any document or 
other tangible item and the identity and location of any person having 
knowledge of discoverable matter. A party may discover facts known, or 
opinions held, by an expert who any other party expects to call to 
testify at the hearing. A party may not object to a discovery request on 
the basis that the information sought would not be admissible at the 
hearing if the information sought during discovery is reasonably 
calculated to lead to the discovery of admissible evidence.
    (f) Limiting discovery. The ALJ must limit the frequency and extent 
of discovery permitted by this section if a party shows that--
    (1) The information requested is cumulative or repetitious;
    (2) The information requested can be obtained from another less 
burdensome and more convenient source;
    (3) The party requesting the information has had ample opportunity 
to obtain the information through other discovery methods permitted 
under this section; or
    (4) The method or scope of discovery requested by the party is 
unduly burdensome or expensive.
    (g) Disclosure of Sensitive Security Information (SSI). At the 
request of a party, TSA may provide SSI to the party when, in the sole 
discretion of TSA, access to the SSI is necessary for the party to 
prepare a response to allegations contained the complaint. TSA may 
provide such information subject to such restrictions on further 
disclosure and such safeguarding requirements as TSA determines 
appropriate.
    (h) Confidential orders. A party or person who has received a 
discovery request for information, other than SSI, that is related to a 
trade secret, confidential or sensitive material, competitive or 
commercial information, proprietary data, or information on research and 
development, may file a motion for a confidential order with the ALJ and 
must serve a copy of the motion for a confidential order on each party.
    (1) The party or person making the motion must show that the 
confidential order is necessary to protect the information from 
disclosure to the public.
    (2) If the ALJ determines that the requested material is not 
necessary to decide the case, the ALJ must preclude any inquiry into the 
matter by any party.
    (3) If the ALJ determines that the requested material may be 
disclosed during discovery, the ALJ may order that the material may be 
discovered and disclosed under limited conditions or may be used only 
under certain terms and conditions.
    (4) If the ALJ determines that the requested material is necessary 
to decide the case and that a confidential order is warranted, the ALJ 
must provide the following:
    (i) An opportunity for review of the document by the parties off the 
record.
    (ii) Procedures for excluding the information from the record.
    (iii) An order that the parties must not disclose the information in 
any manner and the parties must not use the information in any other 
proceeding.
    (i) Protective orders. A party or a person who has received a 
request for discovery may file a motion for protective order and must 
serve a copy of the motion for protective order on each party. The party 
or person making the motion must show that the protective order is 
necessary to protect the party or the person from annoyance, 
embarrassment, oppression, or undue burden or expense. As part of the 
protective order, the ALJ may do the following:
    (1) Deny the discovery request.
    (2) Order that discovery be conducted only on specified terms and 
conditions, including a designation of the time or place for discovery 
or a determination of the method of discovery.
    (3) Limit the scope of discovery or preclude any inquiry into 
certain matters during discovery.
    (j) Duty to supplement or amend responses. A party who has responded 
to a discovery request has a duty to supplement or amend the response, 
as soon as the information is known, as follows:
    (1) A party must supplement or amend any response to a question 
requesting the identity and location of

[[Page 258]]

any person having knowledge of discoverable matters.
    (2) A party must supplement or amend any response to a question 
requesting the identity of each person who will be called to testify at 
the hearing as an expert witness and the subject matter and substance of 
that witness' testimony.
    (3) A party must supplement or amend any response that was incorrect 
when made or any response that was correct when made but is no longer 
correct, accurate, or complete.
    (k) Depositions. The following rules apply to depositions taken 
pursuant to this section:
    (1) Form. A deposition must be taken on the record and reduced to 
writing. The person being deposed must sign the deposition unless the 
parties agree to waive the requirement of a signature.
    (2) Administration of oaths. Within the United States, or a 
territory or possession subject to the jurisdiction of the United 
States, a party must take a deposition before a person authorized to 
administer oaths by the laws of the United States or authorized by the 
law of the place where the examination is held. Outside the United 
States, a party will take a deposition in any manner allowed by the 
Federal Rules of Civil Procedure (28 U.S.C. App.).
    (3) Notice of deposition. A party must serve a notice of deposition, 
stating the time and place of the deposition and the name and address of 
each person to be examined, on the person to be deposed, on the ALJ, on 
the Enforcement Docket Clerk, and on each party not later than 7 days 
before the deposition. A party may serve a notice of deposition less 
than 7 days before the deposition only with consent of the ALJ and for 
good cause shown. If a subpoena ``duces tecum'' is to be served on the 
person to be examined, the party must attach a copy of the subpoena 
duces tecum that describes the materials to be produced at the 
deposition to the notice of deposition.
    (4) Use of depositions. A party may use any part or all of a 
deposition at a hearing authorized under this subpart only upon a 
showing of good cause. The deposition may be used against any party who 
was present or represented at the deposition or who had reasonable 
notice of the deposition.
    (l) Interrogatories. A party, the party's attorney, or the party's 
representative may sign the party's responses to interrogatories. A 
party must answer each interrogatory separately and completely in 
writing. If a party objects to an interrogatory, the party must state 
the objection and the reasons for the objection. An opposing party may 
use any part or all of a party's responses to interrogatories at a 
hearing authorized under this subpart to the extent that the response is 
relevant, material, and not repetitious.
    (1) A party must not serve more than 30 interrogatories to each 
other party. Each subpart of an interrogatory will be counted as a 
separate interrogatory.
    (2) Before serving additional interrogatories on a party, a party 
must file a motion for leave to serve additional interrogatories on a 
party with the ALJ and must serve a copy on each party before serving 
additional interrogatories on a party. The ALJ may grant the motion only 
if the party shows good cause for the party's failure to inquire about 
the information previously and that the information cannot reasonably be 
obtained using less burdensome discovery methods or be obtained from 
other sources.
    (m) Requests for admission. A party may serve a written request for 
admission of the truth of any matter within the scope of discovery under 
this section or the authenticity of any document described in the 
request. A party must set forth each request for admission separately. A 
party must serve copies of documents referenced in the request for 
admission unless the documents have been provided or are reasonably 
available for inspection and copying.
    (1) Time. A party's failure to respond to a request for admission, 
in writing and signed by the attorney or the party, not later than 30 
days after service of the request, is deemed an admission of the truth 
of the statement or statements contained in the request for admission. 
The ALJ may determine that a failure to respond to a request for 
admission is not deemed an admission of the truth if a party shows that 
the failure was due to circumstances

[[Page 259]]

beyond the control of the party or the party's attorney.
    (2) Response. A party may object to a request for admission and must 
state the reasons for objection. A party may specifically deny the truth 
of the matter or describe the reasons why the party is unable to 
truthfully deny or admit the matter. If a party is unable to deny or 
admit the truth of the matter, the party must show that the party has 
made reasonable inquiry into the matter or that the information known 
to, or readily obtainable by, the party is insufficient to enable the 
party to admit or deny the matter. A party may admit or deny any part of 
the request for admission. If the ALJ determines that a response does 
not comply with the requirements of this rule or that the response is 
insufficient, the matter is deemed admitted.
    (3) Effect of admission. Any matter admitted or deemed admitted 
under this section is conclusively established for the purpose of the 
hearing and appeal.
    (n) Motion to compel discovery. A party may move to compel discovery 
if a person refuses to answer a question during a deposition, a party 
fails or refuses to answer an interrogatory, if a person gives an 
evasive or incomplete answer during a deposition or when responding to 
an interrogatory, or a party fails or refuses to produce documents or 
tangible items. During a deposition, the proponent of a question may 
complete the deposition or may adjourn the examination before moving to 
compel if a person refuses to answer.
    (o) Failure to comply with a discovery order or order to compel. If 
a party fails to comply with a discovery order or an order to compel, 
the ALJ, limited to the extent of the party's failure to comply with the 
discovery order or motion to compel, may do the following:
    (1) Strike that portion of a party's pleadings.
    (2) Preclude prehearing or discovery motions by that party.
    (3) Preclude admission of that portion of a party's evidence at the 
hearing.
    (4) Preclude that portion of the testimony of that party's witnesses 
at the hearing.



Sec.  1503.635  Evidence.

    (a) General. A party is entitled to present the party's case or 
defense by oral, documentary, or demonstrative evidence, to submit 
rebuttal evidence, and to conduct any cross-examination that may be 
required for a full and true disclosure of the facts.
    (b) Admissibility. A party may introduce any oral, documentary, or 
demonstrative evidence in support of the party's case or defense. The 
ALJ must admit any oral, documentary, or demonstrative evidence 
introduced by a party, but must exclude irrelevant, immaterial, or 
unduly repetitious evidence.
    (c) Hearsay evidence. Hearsay evidence is admissible in proceedings 
governed by this subpart. The fact that evidence submitted by a party is 
hearsay goes only to the weight of the evidence and does not affect its 
admissibility.



Sec.  1503.637  Standard of proof.

    The ALJ may issue an initial decision or may rule in a party's favor 
only if the decision or ruling is supported by a preponderance of the 
evidence contained in the record. In order to prevail, the party with 
the burden of proof must prove the party's case or defense by a 
preponderance of the evidence.



Sec.  1503.639  Burden of proof.

    (a) Except in the case of an affirmative defense, the burden of 
proof is on the agency.
    (b) Except as otherwise provided by statute or rule, the proponent 
of a motion, request, or order has the burden of proof.
    (c) A party who has asserted an affirmative defense has the burden 
of proving the affirmative defense.



Sec.  1503.641  Offer of proof.

    A party whose evidence has been excluded by a ruling of the ALJ may 
offer the evidence for the record on appeal.



Sec.  1503.643  Public disclosure of evidence.

    This section applies to information other than Sensitive Security 
Information (SSI). All release of SSI is governed by Sec.  1503.415 and 
49 CFR part 1520.

[[Page 260]]

    (a) The ALJ may order that any other information contained in the 
record be withheld from public disclosure. Any person may object to 
disclosure of information in the record by filing a written motion to 
withhold specific information with the ALJ and serving a copy of the 
motion on each party. The party must state the specific grounds for 
nondisclosure in the motion.
    (b) The ALJ must grant the motion to withhold information in the 
record if, based on the motion and any response to the motion, the ALJ 
determines that disclosure would be detrimental to transportation 
safety, disclosure would not be in the public interest, or that the 
information is not otherwise required to be made available to the 
public.



Sec.  1503.645  Expert or opinion witnesses.

    An employee of the agency may not be called as an expert or opinion 
witness, for any party other than TSA, in any proceeding governed by 
this subpart. An employee of a respondent may not be called by an agency 
attorney as an expert or opinion witness for TSA in any proceeding 
governed by this subpart to which the respondent is a party.



Sec.  1503.647  Subpoenas.

    (a) Request for subpoena. A party may obtain a subpoena to compel 
the attendance of a witness at a deposition or hearing, or to require 
the production of documents or tangible items, from the ALJ who is 
assigned to the case, or, if no ALJ is assigned or the assigned law 
judge is unavailable, from the chief ALJ. The party must complete the 
subpoena, stating the title of the action and the date and time for the 
witness' attendance or production of documents or items. The party who 
obtained the subpoena must serve the subpoena on the witness or the 
custodian of the documents or tangible items sought to be produced.
    (b) Motion to quash or modify the subpoena. A party, or any person 
upon whom a subpoena has been served, may file a motion to quash or 
modify the subpoena at or before the time specified in the subpoena for 
compliance. The applicant must describe, in detail, the basis for the 
application to quash or modify the subpoena including, but not limited 
to, a statement that the testimony, document, or tangible evidence is 
not relevant to the proceeding, that the subpoena is not reasonably 
tailored to the scope of the proceeding, or that the subpoena is 
unreasonable and oppressive. A motion to quash or modify the subpoena 
will stay the effect of the subpoena pending a decision by the ALJ on 
the motion.
    (c) Enforcement of subpoena. Upon a showing that a person has failed 
or refused to comply with a subpoena, a party may apply to the U.S. 
district court having jurisdiction to seek judicial enforcement of the 
subpoena in accordance with 49 U.S.C. 46104.



Sec.  1503.649  Witness fees.

    (a) General. Unless otherwise authorized by the ALJ, the party who 
applies for a subpoena to compel the attendance of a witness at a 
deposition or hearing, or the party at whose request a witness appears 
at a deposition or hearing, must pay the witness fees described in this 
section.
    (b) Amount. Except for an employee of the agency who appears at the 
direction of the agency, a witness who appears at a deposition or 
hearing is entitled to the same fees and mileage expenses as are paid to 
a witness in a court of the United States in comparable circumstances.



Sec.  1503.651  Record.

    (a) Exclusive record. The request for hearing, complaint, answer, 
transcript of all testimony in the hearing, all exhibits received into 
evidence, and all motions, responses to motions, applications, requests, 
and rulings will constitute the exclusive record for decision of the 
proceedings and the basis for the issuance of any orders in the 
proceeding.
    (b) Examination and copying of record. (1) Generally. Any person 
interested in reviewing or obtaining a copy of a record may do so only 
by submitting a Freedom of Information Act (FOIA) request under 5 U.S.C. 
552, et seq., 49 CFR part 7, and any applicable DHS regulations. 
Portions of the record may be exempt from disclosure pursuant to FOIA.

[[Page 261]]

    (2) Docket Files or Documents Not for Public Disclosure. (i) Only 
the following persons may review docket files or particular documents 
that are not for public disclosure:
    (A) Parties to the proceedings.
    (B) Their designated representatives.
    (C) Persons who have a need to know as determined by the 
Administrator.
    (ii) Those persons with permission to review these documents or 
docket files may view the materials at the TSA Headquarters, 601 South 
12th Street, Arlington, Virginia 20598-6002. Persons with access to 
these records may have a copy of the records after payment of reasonable 
costs.



Sec.  1503.653  Argument before the ALJ.

    (a) Arguments during the hearing. During the hearing, the ALJ must 
give the parties a reasonable opportunity to present arguments on the 
record supporting or opposing motions, objections, and rulings if the 
parties request an opportunity for argument. The ALJ may request written 
arguments during the hearing if the ALJ finds that submission of written 
arguments is necessary before the ALJ issues the ruling or order.
    (b) Final oral argument. At the conclusion of the hearing and before 
the ALJ issues an initial decision in the proceedings, the parties are 
entitled to submit oral proposed findings of fact and conclusions of 
law, exceptions to rulings of the ALJ, and supporting arguments for the 
findings, conclusions, or exceptions. At the conclusion of the hearing, 
a party may waive final oral argument.
    (c) Posthearing briefs. The ALJ may request written posthearing 
briefs before the ALJ issues an initial decision in the proceedings. If 
a party files a written posthearing brief, the party must include 
proposed findings of fact and conclusions of law, exceptions to rulings 
of the ALJ, and supporting arguments for the findings, conclusions, or 
exceptions. The ALJ must give the parties a reasonable opportunity, not 
more than 30 days after receipt of the transcript, to prepare and submit 
the briefs.



Sec.  1503.655  Initial decision.

    (a) Contents. The ALJ may issue an initial decision after the 
conclusion of the hearing or after the submission of written posthearing 
briefs, if so ordered. In each oral or written decision, the ALJ must 
include findings of fact and conclusions of law, and the grounds 
supporting those findings and conclusions, upon all material issues of 
fact, the credibility of witnesses, the applicable law, any exercise of 
the ALJ's discretion, the amount of any civil penalty found appropriate 
by the ALJ, and a discussion of the basis for any order issued in the 
proceedings. The ALJ is not required to provide a written explanation 
for rulings on objections, procedural motions, and other matters not 
directly relevant to the substance of the initial decision. If the ALJ 
refers to any previous unreported or unpublished initial decision, the 
ALJ must make copies of that initial decision available to all parties 
and the TSA decision maker.
    (b) Written decision. At the conclusion of the hearing, the ALJ may 
issue the initial decision and order orally on the record. The ALJ must 
issue a written initial decision and order not later than 30 days after 
the conclusion of the hearing or submission of the last posthearing 
brief. The ALJ must serve a copy of any written initial decision on each 
party.
    (c) Order assessing civil penalty. Unless appealed pursuant to Sec.  
1503.657, the initial decision issued by the ALJ will be considered an 
order assessing civil penalty if the ALJ finds that an alleged violation 
occurred and determines that a civil penalty, in an amount found 
appropriate by the ALJ, is warranted.
    (d) Effect of initial decision. An initial decision of an ALJ is 
persuasive authority in any other civil penalty action, unless appealed 
and reversed by the TSA decision maker or a court of competent 
jurisdiction.



Sec.  1503.657  Appeal from initial decision.

    (a) Notice of appeal. Either party may appeal the initial decision, 
and any decision not previously appealed pursuant to Sec.  1503.631, by 
filing a notice of appeal with the Enforcement Docket Clerk. A party 
must file the notice of

[[Page 262]]

appeal with USCG ALJ Docketing Center, ATTN: Enforcement Docket Clerk, 
40 S. Gay Street, Room 412, Baltimore, Maryland 21202-4022. A party must 
file the notice of appeal not later than 10 days after entry of the oral 
initial decision on the record or service of the written initial 
decision on the parties and must serve a copy of the notice of appeal on 
each party. Upon filing of a notice of appeal, the effectiveness of the 
initial decision is stayed until a final decision and order of the TSA 
decision maker have been entered on the record.
    (b) Issues on appeal. A party may appeal only the following issues:
    (1) Whether each finding of fact is supported by a preponderance of 
the evidence.
    (2) Whether each conclusion of law is made in accordance with 
applicable law, precedent, and public policy.
    (3) Whether the ALJ committed any prejudicial errors during the 
hearing that support the appeal.
    (c) Perfecting an appeal. Unless otherwise agreed by the parties, a 
party must perfect an appeal, not later than 50 days after entry of the 
oral initial decision on the record or service of the written initial 
decision on the party, by filing an appeal brief with the Enforcement 
Docket Clerk.
    (1) Extension of time by agreement of the parties. The parties may 
agree to extend the time for perfecting the appeal with the consent of 
the TSA decision maker. If the TSA decision maker grants an extension of 
time to perfect the appeal, the Enforcement Docket Clerk will serve a 
letter confirming the extension of time on each party.
    (2) Written motion for extension. If the parties do not agree to an 
extension of time for perfecting an appeal, a party desiring an 
extension of time may file a written motion for an extension with the 
Enforcement Docket Clerk and must serve a copy of the motion on each 
party. The TSA decision maker may grant an extension if good cause for 
the extension is shown in the motion.
    (d) Appeal briefs. A party must file the appeal brief with the 
Enforcement Docket Clerk and must serve a copy of the appeal brief on 
each party.
    (1) In the appeal brief, a party must set forth, in detail, the 
party's specific objections to the initial decision or rulings, the 
basis for the appeal, the reasons supporting the appeal, and the relief 
requested in the appeal. If, for the appeal, the party relies on 
evidence contained in the record for the appeal, the party must 
specifically refer in the appeal brief to the pertinent evidence 
contained in the transcript.
    (2) The TSA decision maker may dismiss an appeal, on the TSA 
decision maker's own initiative or upon motion of any other party, where 
a party has filed a notice of appeal but fails to perfect the appeal by 
timely filing an appeal brief.
    (e) Reply brief. Unless otherwise agreed by the parties, any party 
may file a reply brief not later than 35 days after the appeal brief has 
been served on that party. The party filing the reply brief must serve a 
copy of the reply brief on each party. If the party relies on evidence 
contained in the record for the reply, the party must specifically refer 
to the pertinent evidence contained in the transcript in the reply 
brief.
    (1) Extension of time by agreement of the parties. The parties may 
agree to extend the time for filing a reply brief with the consent of 
the TSA decision maker. If the TSA decision maker grants an extension of 
time to file the reply brief, the Enforcement Docket Clerk will serve a 
letter confirming the extension of time on each party.
    (2) Written motion for extension. If the parties do not agree to an 
extension of time for filing a reply brief, a party desiring an 
extension of time may file a written motion for an extension and will 
serve a copy of the motion on each party. The TSA decision maker may 
grant an extension if good cause for the extension is shown in the 
motion.
    (f) Other briefs. The TSA decision maker may allow any person to 
submit an amicus curiae brief in an appeal of an initial decision. A 
party may not file more than one appeal brief or reply brief. A party 
may petition the TSA decision maker, in writing, for leave to file an 
additional brief and must serve a copy of the petition on each party. 
The party may not file the additional

[[Page 263]]

brief with the petition. The TSA decision maker may grant leave to file 
an additional brief if the party demonstrates good cause for allowing 
additional argument on the appeal. The TSA decision maker will allow a 
reasonable time for the party to file the additional brief.
    (g) Number of copies. A party must file the original appeal brief or 
the original reply brief, and two copies of the brief, with the 
Enforcement Docket Clerk.
    (h) Oral argument. The TSA decision maker has sole discretion to 
permit oral argument on the appeal. On the TSA decision maker's own 
initiative or upon written motion by any party, the TSA decision maker 
may find that oral argument will contribute substantially to the 
development of the issues on appeal and may grant the parties an 
opportunity for oral argument.
    (i) Waiver of objections on appeal. If a party fails to object to 
any alleged error regarding the proceedings in an appeal or a reply 
brief, the party waives any objection to the alleged error. The TSA 
decision maker is not required to consider any objection in an appeal 
brief or any argument in the reply brief if a party's objection is based 
on evidence contained in the record and the party does not specifically 
refer to the pertinent evidence from the record in the brief.
    (j) The TSA decision maker's decision on appeal. The TSA decision 
maker will review the briefs on appeal and the oral argument, if any, to 
determine if the ALJ committed prejudicial error in the proceedings or 
that the initial decision should be affirmed, modified, or reversed. The 
TSA decision maker may affirm, modify, or reverse the initial decision, 
make any necessary findings, or may remand the case for any proceedings 
that the TSA decision maker determines may be necessary.
    (1) The TSA decision maker may raise any issue, on the TSA decision 
maker's own initiative, that is required for proper disposition of the 
proceedings. The TSA decision maker will give the parties a reasonable 
opportunity to submit arguments on the new issues before making a 
decision on appeal. If an issue raised by the TSA decision maker 
requires the consideration of additional testimony or evidence, the TSA 
decision maker will remand the case to the ALJ for further proceedings 
and an initial decision related to that issue. If the TSA decision maker 
raises an issue that is solely an issue of law, or the issue was 
addressed at the hearing but was not raised by a party in the briefs on 
appeal, the TSA decision maker need not remand the case to the ALJ for 
further proceedings but has the discretion to do so.
    (2) The TSA decision maker will issue the final decision and order 
of the Administrator on appeal in writing and will serve a copy of the 
decision and order on each party. Unless a petition for review is filed 
pursuant to Sec.  1503.659, a final decision and order of the 
Administrator will be considered an order assessing civil penalty if the 
TSA decision maker finds that an alleged violation occurred and a civil 
penalty is warranted.
    (3) A final decision and order of the Administrator after appeal is 
binding precedent in any other civil penalty action unless appealed and 
reversed by a court of competent jurisdiction.
    (4) The TSA decision maker will determine whether the decision and 
order of the TSA decision maker, with the ALJ's initial decision or 
order attached, may be released to the public, either in whole or in 
redacted form. In making this determination, the TSA decision maker will 
consider whether disclosure of any of the information in the decision 
and order would be detrimental to transportation security, would not be 
in the public interest, or should not otherwise be required to be made 
available to the public.



Sec.  1503.659  Petition to reconsider or modify a final decision and order of the TSA decision maker on appeal.

    (a) General. Any party may petition the TSA decision maker to 
reconsider or modify a final decision and order issued by the TSA 
decision maker on appeal from an initial decision. A party must file a 
petition to reconsider or modify not later than 30 days after service of 
the TSA decision maker's final decision and order on appeal and must 
serve a copy of the petition on each party. The TSA decision maker will 
not reconsider or modify an initial decision and order issued by an ALJ

[[Page 264]]

that has not been appealed by any party to the TSA decision maker and 
filed with the Enforcement Docket Clerk.
    (b) Form and number of copies. A party must file in writing a 
petition to reconsider or modify. The party must file the original 
petition with the Enforcement Docket Clerk and must serve a copy of the 
petition on each party.
    (c) Contents. A party must state briefly and specifically the 
alleged errors in the final decision and order on appeal, the relief 
sought by the party, and the grounds that support the petition to 
reconsider or modify.
    (1) If the petition is based, in whole or in part, on allegations 
regarding the consequences of the TSA decision maker's decision, the 
party must describe and support those allegations.
    (2) If the petition is based, in whole or in part, on new material 
not previously raised in the proceedings, the party must set forth the 
new material and include affidavits of prospective witnesses and 
authenticated documents that would be introduced in support of the new 
material. The party must explain, in detail, why the new material was 
not discovered through due diligence prior to the hearing.
    (d) Repetitious and frivolous petitions. The TSA decision maker will 
not consider repetitious or frivolous petitions. The TSA decision maker 
may summarily dismiss repetitious or frivolous petitions to reconsider 
or modify.
    (e) Reply petitions. Any other party may reply to a petition to 
reconsider or modify, not later than 30 days after service of the 
petition on that party, by filing a reply with the Enforcement Docket 
Clerk. A party must serve a copy of the reply on each party.
    (f) Effect of filing petition. Unless otherwise ordered by the TSA 
decision maker, filing a petition pursuant to this section will stay the 
effective date of the TSA decision maker's final decision and order on 
appeal.
    (g) The TSA decision maker's decision on petition. The TSA decision 
maker has sole discretion to grant or deny a petition to reconsider or 
modify. The TSA decision maker will grant or deny a petition to 
reconsider or modify within a reasonable time after receipt of the 
petition or receipt of the reply petition, if any. The TSA decision 
maker may affirm, modify, or reverse the final decision and order on 
appeal, or may remand the case for any proceedings that the TSA decision 
maker determines may be necessary.

[74 FR 36039, July 21, 2009, as amended at 75 FR 58334, Sept. 24, 2010]



Sec.  1503.661  Judicial review of a final order.

    For violations of a TSA requirement, a party may petition for review 
of a final order of the Administrator only to the courts of appeals of 
the United States or the United States Court of Appeals for the District 
of Columbia pursuant to 49 U.S.C. 46110. A party seeking judicial review 
of a final order must file a petition for review not later than 60 days 
after the final order has been served on the party.



            Subpart H_Judicial Assessment of Civil Penalties



Sec.  1503.701  Applicability of this subpart.

    (a) Jurisdictional minimums. This subpart applies to a civil penalty 
action under this part in which the total amount in controversy exceeds 
the following amounts.
    (b) In general. Except as provided in paragraph (c) of this section, 
in the case of violation of title 49 U.S.C. or 46 U.S.C chapter 701, a 
regulation prescribed, or order issued under any of those provisions, 
the amount in controversy exceeds the following:
    (1) $50,000, in the case of violation by an individual or small 
business concern, as defined in section 3 of the Small Business Act (15 
U.S.C. 632).
    (2) $400,000, in the case of violation by any other person.
    (c) Certain aviation related violations. In the case of a violation 
of 49 U.S. C. chapter 449 (except sections 44902, 44903(d), 44907(a)-
(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), or a regulation 
prescribed or order issued under any of those provisions, the amount in 
controversy exceeds the following:
    (1) $50,000, in the case of violation by an individual (except an 
airman serving as an airman), any person not operating an aircraft for 
the transportation

[[Page 265]]

of passengers or property for compensation, or a small business concern, 
as defined in section 3 of the Small Business Act (15 U.S.C. 632).
    (2) $400,000, in the case of violation by a person operating an 
aircraft for the transportation of passengers or property for 
compensation (except an individual serving as an airman).



Sec.  1503.703  Civil penalty letter; referral.

    (a) Issuance. In a civil penalty action in which the amount in 
controversy exceeds the amounts set forth in Sec.  1503.701, the 
Administrator will send a civil penalty letter to the person charged 
with a violation of a TSA requirement.
    (b) Contents. The civil penalty letter will contain a statement of 
the charges; the applicable law, rule, regulation, or order; the amount 
of civil penalty that the Administrator will accept in full settlement 
of the action or an offer to compromise the civil penalty.
    (c) Response. Not later than 30 days after receipt of the civil 
penalty letter, the person charged with a violation may present to the 
agency attorney any material or information in answer to the charges, 
either orally or in writing, that may explain, mitigate, or deny the 
violation or that may show extenuating circumstances. The Administrator 
will consider any material or information submitted in accordance with 
this paragraph (c) to determine whether the person is subject to a civil 
penalty or to determine the amount for which the Administrator will 
compromise the action.
    (d) Compromise. If the person charged with a violation offers to 
compromise the civil penalty action for a specific amount, that person 
must send payment in a form and manner acceptable to TSA for that amount 
to the agency, made payable to the Transportation Security 
Administration, or make payment electronically through http://
www.pay.gov. The Chief Counsel or the Deputy Chief Counsel for Civil 
Enforcement may accept the payment or may refuse and return the payment. 
If the Administrator accepts the offer to compromise, the agency will 
send a letter to the person charged with the violation stating that the 
payment is accepted in full settlement of the civil penalty action and 
that the matter is closed.
    (e) Referral for prosecution and collection. If the parties cannot 
agree to compromise the civil penalty action or the offer to compromise 
is rejected and the payment submitted in compromise is returned, the 
Administrator may refer the civil penalty action to the United States 
Attorney General, or the delegate of the Attorney General, to begin 
proceedings in a United States district court, pursuant to the authority 
in 49 U.S.C. 114 or 46305 to prosecute and collect the civil penalty.
    (f) The Administrator delegates to the Chief Counsel and the Deputy 
Chief Counsel for Enforcement the authority to carry out any function of 
the Administrator described in this Sec.  1503.703.



                       Subpart I_Formal Complaints



Sec.  1503.801  Formal complaints.

    (a) Any person may file a complaint with the Administrator with 
respect to any act or omission by any person in contravention of 49 
U.S.C., subtitle VII, part A, (except sections 44902, 44903(d), 
44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909) administered 
by the Administrator, or a regulation prescribed or order issued under 
any of those provisions. This section does not apply to complaints 
against the Administrator or employees of the TSA acting within the 
scope of their employment.
    (b) Complaints filed under this section must--
    (1) Be submitted in writing and identified as a complaint filed for 
the purpose of seeking an appropriate order or other enforcement action;
    (2) Be submitted to the U.S. Department of Homeland Security, 
Transportation Security Administration, by following the instructions to 
complete a ``complaint'' contact form by following the instructions on 
the TSA Web site, currently accessible at http://www.tsa.gov/contact/
index.shtm.
    (3) Set forth the name and address, if known, of each person who is 
the subject of the complaint and, with respect to each person, the 
specific provisions of the statute, regulation, or order that

[[Page 266]]

the person filing the complaint believes were violated;
    (4) Contain a concise, but complete, statement of the facts relied 
upon to substantiate each allegation;
    (5) State the name, address, and telephone number of the person 
filing the complaint; and
    (6) Be signed by the person filing the complaint or a duly 
authorized representative.
    (c) TSA will consider complaints that do not meet the requirements 
of paragraph (b) of this section as reports under Sec.  1503.1.
    (d) TSA will place complaints that meet the requirements of 
paragraph (b) of this section in the docket and will mail a copy to each 
person named in the complaint.
    (e) TSA will refer any complaint against a member of the Armed 
Forces of the United States acting in the performance of official duties 
to the Secretary of the Department concerned in accordance with the 
procedures set forth in Sec.  1503.407.
    (f) The person named in the complaint must file an answer within 20 
days after service of a copy of the complaint.
    (g) After the complaint has been answered or after the allotted time 
in which to file an answer has expired, the Administrator, or a 
designated official, will determine if there are reasonable grounds for 
investigating the complaint.
    (h) If the Administrator, or a designated official, determines that 
a complaint does not state facts that warrant an investigation or 
action, the Administrator or designated official may dismiss the 
complaint without a hearing and, if so, will provide the reason for the 
dismissal, in writing, to the person who filed the complaint and the 
person(s) named in the complaint.
    (i) If the Administrator, or a designated official, determines that 
reasonable grounds exist, an informal investigation may be initiated. 
Each person named in the complaint will be advised which official has 
been delegated the responsibility under Sec.  1503.203 for conducting 
the investigation.
    (j) If the investigation substantiates the allegations set forth in 
the complaint, a notice of proposed order may be issued or other 
enforcement action taken in accordance with this part.
    (k) The complaint and other pleadings and official TSA records 
relating to the disposition of the complaint are maintained in current 
docket form at: U.S. Department of Homeland Security, Transportation 
Security Administration, Office of the Chief Counsel, TSA-2, Complaint 
Docket, 601 South 12th Street, Arlington, VA 20598-6002. If this 
location changes, TSA will give notice of the change by publishing a 
notice in the Federal Register.
    (1) Generally. Any person interested in reviewing or obtaining a 
copy of a record may do so only by submitting a Freedom of Information 
Act (FOIA) request under 5 U.S.C. 552, et seq. and 49 CFR part 7. 
Portions of the record may be exempt from disclosure pursuant to FOIA.
    (2) Docket files or documents not for public disclosure. (i) Only 
the following persons may review docket files or particular documents 
that are not for public disclosure:
    (A) Parties to the proceedings.
    (B) Representatives designated in writing by a party.
    (C) Persons who have a need to know as determined by the 
Administrator.
    (ii) Those persons with permission to review these documents or 
docket files may view the materials at the Complaint Docket, TSA 
Headquarters, Visitor Center, 601 South 12th Street, Arlington, Virginia 
20598-6002, Attn: Office of Chief Counsel. If this address changes, TSA 
will give notice by publishing a notice in the Federal Register. Persons 
with access to these records may have a copy of the records after 
payment of reasonable costs.



PART 1507_PRIVACY ACT-EXEMPTIONS--Table of Contents



Sec.
1507.1 Scope.
1507.3 Exemptions.

    Authority: 49 U.S.C. 114(l)(1), 40113, 5 U.S.C. 552a(j) and (k).

    Source: 69 FR 35537, June 25, 2004, unless otherwise noted.



Sec.  1507.1  Scope.

    This part implements provisions of the Privacy Act of 1974 (the Act) 
that

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permit TSA to exempt any system of records within the agency from 
certain requirements of the Act. The procedures governing access to, and 
correction of, records in a TSA system of records are set forth in 6 CFR 
part 5, subpart B.



Sec.  1507.3  Exemptions.

    The following TSA systems of records are exempt from certain 
provisions of the Privacy Act of 1974 pursuant to 5 U.S.C. 552a(j), (k), 
or both, as set forth in this section. During the course of normal 
agency functions, exempt materials from one system of records may become 
part of one or more other systems of records. To the extent that any 
portion of system of records becomes part of another Privacy Act system 
of records, TSA hereby claims the same exemptions as were claimed in the 
original primary system of which they are a part and claims any 
additional exemptions in accordance with this part.
    (a) Transportation Security Enforcement Record System (DHS/TSA 001). 
The Transportation Security Enforcement Record System (TSERS) (DHS/TSA 
001) enables TSA to maintain a system of records related to the 
screening of passengers and property and they may be used to identify, 
review, analyze, investigate, and prosecute violations or potential 
violations of criminal statutes and transportation security laws. 
Pursuant to exemptions (j)(2), (k)(1), and (k)(2) of the Privacy Act, 
DHS/TSA 001 is exempt from 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(3), 
(e)(4)(G), (H), and (I), and (f). Exemptions from the particular 
subsections are justified for the following reasons:
    (1) From subsection (c)(3) (Accounting for Disclosures) because 
release of the accounting of disclosures could alert the subject of an 
investigation of an actual or potential criminal, civil, or regulatory 
violation to the existence of the investigation and reveal investigative 
interest on the part of TSA, as well as the recipient agency. Disclosure 
of the accounting would therefore present a serious impediment to 
transportation security, law enforcement efforts, and efforts to 
preserve national security. Disclosure of the accounting would also 
permit the individual who is the subject of a record to impede the 
investigation and avoid detection or apprehension, which undermines the 
entire system.
    (2) From subsection (d) (Access to Records) because access to the 
records contained in this system of records could inform the subject of 
an investigation of an actual or potential criminal, civil, or 
regulatory violation to the existence of the investigation and reveal 
investigative interest on the part of TSA, as well as the recipient 
agency. Access to the records would permit the individual who is the 
subject of a record to impede the investigation and avoid detection or 
apprehension. Amendment of the records would interfere with ongoing 
investigations and law enforcement activities, and impose an impossible 
administrative burden by requiring investigations to be continuously 
reinvestigated. The information contained in the system may also include 
properly classified information, the release of which would pose a 
threat to national defense and/or foreign policy. In addition, 
permitting access and amendment to such information also could disclose 
sensitive security information, which could be detrimental to 
transportation security.
    (3) From subsection (e)(1) (Relevancy and Necessity of Information) 
because in the course of investigations into potential violations of 
transportation security laws, the accuracy of information obtained or 
introduced occasionally may be unclear or the information may not be 
strictly relevant or necessary to a specific investigation. In the 
interests of effective enforcement of transportation security laws, it 
is appropriate to retain all information that may aid in establishing 
patterns of unlawful activity.
    (4) From subsection (e)(3) (Privacy Act Statement) because 
disclosing the authority, purpose, routine uses, and potential 
consequences of not providing information could reveal the investigative 
interests of TSA, as well as the nature and scope of an investigation, 
the disclosure of which could enable individuals to circumvent agency 
regulations or statutes.
    (5) From subsections (e)(4)(G), (H), and (I) (Agency Requirements), 
and (f) (Agency Rules), because this system is

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exempt from the access provisions of subsection (d).
    (b) Transportation Workers Employment Investigations System (DHS/TSA 
002). The Transportation Workers Employment Investigations System (TWEI) 
(DHS/TSA 002) enables TSA to facilitate the performance of background 
checks on employees of transportation operators and others who are 
issued credentials or clearances by transportation operators, other than 
TSA employees. Pursuant to exemptions (k)(1) and (k)(2) of the Privacy 
Act, DHS/TSA 002 is exempt from 5 U.S.C. 552a(c)(3), (d), (e)(1), 
(e)(4)(G), (H) and (I), and (f). Exemptions from the particular 
subsections are justified for the following reasons:
    (1) From subsection (c)(3) (Accounting for Disclosures), because 
release of the accounting of disclosures could reveal investigative 
interest on the part of the recipient agency that obtained the record 
pursuant to a routine use. Disclosure of the accounting could therefore 
present a serious impediment to law enforcement efforts on the part of 
the recipient agency, as the individual who is the subject of a record 
would learn of third-agency investigate interests and thereby avoid 
detection or apprehension.
    (2) From subsection (d) (Access to Records), because access to the 
records contained in this system could reveal investigate techniques and 
procedures in the transportation workers employment investigation 
process, as well as the nature and scope of the employment 
investigation, the disclosure of which could enable individuals to 
circumvent agency regulations or statutes and obtain access to sensitive 
information and restricted areas in the transportation industry. The 
information contained in the system might include properly classified 
information, the release of which would pose a threat to national 
defense and/or foreign policy. In addition, permitting access and 
amendment to such information could reveal sensitive security 
information protected pursuant to 49 U.S.C. 114(s), the disclosure of 
which could be detrimental to the security of transportation.
    (3) From subsection (e)(1) (Relevancy and Necessity of Information), 
because third-agency records obtained or made available to TSA during 
the course of an employment investigation may occasionally contain 
information that is not strictly relevant or necessary to a specific 
employment investigation. In the interests of administering an effective 
and comprehensive transportation worker employment investigation 
program, it is appropriate and necessary for TSA to retain all such 
information that may aid in that process.
    (4) From subsections (e)(4)(G), (H), and (I) (Agency Requirements), 
and (f) (Agency Rules), because this system is exempt from the access 
provisions of subsection (d).
    (c) Personnel Background Investigation File System (DHS/TSA 004). 
The Personnel Background Investigation File System (PBIFS) (DHS/TSA 004) 
enables TSA to maintain investigative and background material used to 
make suitability and eligibility determinations regarding current and 
former TSA employees, applicants for TSA employment, and TSA contract 
employees. Pursuant to exemptions (k)(1) and (k)(5) of the Privacy Act, 
the Personnel Background Investigation File System is exempt from 5 
U.S.C. 552a(c)(3) (Accounting of Disclosures) and (d) (Access to 
Records). Exemptions from the particular subsections are justified 
because this system contains investigatory material compiled solely for 
determining suitability, eligibility, and qualifications for Federal 
civilian employment. To the extent that the disclosure of material would 
reveal any classified material or the identity of a source who furnished 
information to the Government under an express promise that the identity 
of the source would be held in confidence, or, prior to September 27, 
1975, under an implied promise that the identity of the source would be 
held in confidence, the applicability of exemption (k)(5) will be 
required to honor promises of confidentiality should the data subject 
request access to or amendment of the record, or access to the 
accounting of disclosures of the record. Exemption (k)(1) will be 
required to protect any classified information that may be in this 
system.

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    (d) Internal Investigation Record System (DHS/TSA 005). The Internal 
Investigation Record System (IIRS) (DHS/TSA 005) contains records of 
internal investigations for all modes of transportation for which TSA 
has security-related duties. This system covers information regarding 
investigations of allegations or appearances of misconduct of current or 
former TSA employees or contractors and provides support for any adverse 
action that may occur as a result of the findings of the investigation. 
It is being modified to cover investigations of security-related 
incidents and reviews of TSA programs and operations. Pursuant to 
exemptions (j)(2), (k)(1), and (k)(2) of the Privacy Act, DHS/TSA 005 is 
exempt from 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(3), (e)(4)(G), (H), 
and (I), and (f). Exemptions from the particular subsections are 
justified for the following reasons:
    (1) From subsection (c)(3) (Accounting for Disclosures) because 
release of the accounting of disclosures could reveal investigative 
interest on the part of the recipient agency that obtained the record 
pursuant to a routine use. Disclosure of the accounting could, 
therefore, present a serious impediment to law enforcement efforts on 
the part of the recipient agency, as the individual who is the subject 
of a record would learn of third-agency investigative interests and 
thereby avoid detection or apprehension, as well as to TSA investigative 
efforts.
    (2) From subsection (d) (Access to Records) because access to the 
records contained in this system could reveal investigative techniques 
and procedures of the investigators, as well as the nature and scope of 
the investigation, the disclosure of which could enable individuals to 
circumvent agency regulations or statutes. The information contained in 
the system might include properly classified information, the release of 
which would pose a threat to national defense and/or foreign policy. In 
addition, permitting access and amendment to such records could reveal 
sensitive security information protected pursuant to 49 U.S.C. 114(s), 
the disclosure of which could be detrimental to the security of 
transportation.
    (3) From subsection (e)(1) (Relevancy and Necessity of Information) 
because third agency records obtained or made available to TSA during 
the course of an investigation may occasionally contain information that 
is not strictly relevant or necessary to a specific investigation. In 
the interests of administering an effective and comprehensive 
investigation program, it is appropriate and necessary for TSA to retain 
all such information that may aid in that process.
    (4) From subsection (e)(3) (Privacy Act Statement) because 
disclosing the authority, purpose, routine uses, and potential 
consequences of not providing information could reveal the targets of 
interests of the investigating office, as well as the nature and scope 
of an investigation, the disclosure of which could enable individuals to 
circumvent agency regulations or statutes.
    (5) From subsections (e)(4)(G), (H) and (I) (Agency Requirements), 
and (f) (Agency Rules), because this system is exempt from the access 
provisions of subsection (d).
    (e) Correspondence and Matters Tracking Records (DHS/TSA 006). The 
Correspondence and Matters Tracking Records (CMTR) (DHS/TSA 006) system 
allows TSA to manage, track, retrieve, and respond to incoming 
correspondence, inquiries, claims and other matters presented to TSA for 
disposition, and to monitor the assignment, disposition and status of 
such matters. This system covers information coming into TSA from 
individuals as well as information recorded by TSA employees in the 
performance of their duties. Pursuant to exemptions (k)(1) and (k)(2) of 
the Privacy Act, DHS/TSA 006 is exempt from 5 U.S.C. 552a(c)(3), (d), 
(e)(1), (e)(4)(G), (H) and (I), and (f). Exemptions from the particular 
subsections are justified for the following reasons:
    (1) From subsection (c)(3) (Accounting for Disclosures), because 
release of the accounting of disclosures could reveal investigative 
interest on the part of the recipient agency that obtained the record 
pursuant to a routine use. Disclosure of the accounting could therefore 
present a serious impediment to law enforcement efforts on the part

[[Page 270]]

of the recipient agency, as the individual who is the subject of a 
record would lean of third-agency investigative interests and thereby 
avoid detection or apprehension.
    (2) From subsection (d) (Access to Records), because access to the 
records contained in this system could reveal investigative interest on 
the part of TSA or other agency and the nature of that interest, the 
disclosure of which could enable individuals to circumvent agency 
regulations or statutes. The information contained in the system might 
include properly classified information, the release of which would pose 
a threat to national defense and/or foreign policy. In addition, 
permitting access and amendment to such information could reveal 
sensitive security information protected pursuant to 49 U.S.C. 114(s), 
the disclosure of which could be detrimental to transportation security.
    (3) From subsection (e)(1) (Relevancy and necessity of Information), 
because third-agency records obtained or made available to TSA during 
the course of an investigation may occasionally contain information that 
is not strictly relevant or necessary to a specific investigation. In 
the interests of administering an effective and comprehensive 
investigation program, it is appropriate and necessary for TSA to retain 
all such information that may aid in that process.
    (4) From subsections (e)(4)(G), (H) and (I) (Agency Requirements), 
and (f) (Agency rules), because this system is exempt from the access 
provisions of subsection (d).
    (f) Freedom of Information and Privacy Act Records (DHS/TSA 007). 
The Freedom of Information and Privacy Act (FOIA/PA) Records System 
(DHS/TSA 007) system enables TSA to maintain records that will assist in 
processing access requests and administrative appeals under FOIA and 
access and amendments requests and appeals under the PA; participate in 
associated litigation; and assist TSA in carrying out any other 
responsibilities under FOIA/PA. Pursuant to exemptions (k)(1) and (k)(2) 
of the Privacy Act, Freedom of Information and Privacy Act Records are 
exempt from 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H) and (I), 
and (f). Exemptions from the particular subsections are justified for 
the following reasons:
    (1) From subsection (c)(3) (Accounting for Disclosures), because 
release of the accounting of disclosures could reveal investigative 
interest on the part of the recipient agency that obtained the record 
pursuant to a routine use. Disclosure of the accounting could therefore 
present a serious impediment to law enforcement efforts on the part of 
the recipient agency, as the individual who is the subject of a record 
would learn of third-agency investigative interests and thereby avoid 
detection or apprehension.
    (2) From subsection (d) (Access to Records), because access to the 
records contained in this system could reveal investigative interest on 
the part of TSA or other agency and the nature of that interest, the 
disclosure of which could enable individuals to circumvent agency 
regulations or statutes. The information contained in the system might 
include properly classified information, the release of which would pose 
a threat to national defense and/or foreign policy. In addition, 
permitting access and amendment to such information could reveal 
sensitive security information protected pursuant to 49 U.S.C. 114(s), 
the disclosure of which would be detrimental to transportation security.
    (3) From subsection (e)(1) (Relevancy and necessity of Information), 
because third-agency records obtained or made available to TSA during 
the course of an investigation may occasionally contain information that 
is not strictly relevant or necessary to a specific investigation. In 
the interests of administering an effective and comprehensive 
investigation program, it is appropriate and necessary for TSA to retain 
all such information that may aid in that process.
    (4) From subsections (e)(4)(G), (H) and (I) (Agency Requirements), 
and (f) (Agency Rules), because this system is exempt from the access 
provisions of subsection (d).
    (g) General Legal Records System (DHS/TSA 009). The General Legal 
Records (GLR) System (DHS/TSA 009) enables

[[Page 271]]

TSA to maintain records that will assist attorneys to perform their 
functions within the office of Chief Counsel, to include providing legal 
advice, responding to claims filed by employees and others, and 
assisting in litigation and in the settlement of claims. Pursuant to 
exemptions (k)(1) and (k)(2) of the Privacy Act, DHS/TSA 009 is exempt 
from 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H) and (I), and (f). 
Exemptions from the particular subsections are justified for the 
following reasons:
    (1) From subsection (c)(3) (Accounting for Disclosures), because 
release of the accounting of disclosures could reveal investigative 
interest on the part of the recipient agency that obtained the record 
pursuant to a routine use. Disclosure of the accounting could therefore 
present a serious impediment to law enforcement efforts on the part of 
the recipient agency, as the individual who is the subject of a record 
would learn of third-agency investigative interests and thereby avoid 
detection or apprehension.
    (2) From subsection (d) (Access to Records), because access to the 
records contained in this system could reveal investigative interest on 
the part of TSA or other agency and the nature of that interest, the 
disclosure of which would enable individuals to circumvent agency 
regulations or statutes. The information contained in the system might 
include properly classified information, the release of which would pose 
a threat to national defense and/or foreign policy. In addition, 
permitting access and amendment to such information could reveal 
sensitive security information protected pursuant to 49 U.S.C. 114(s), 
the disclosure of which could be detrimental to transportation security.
    (3) From subsection (e)(1) (Relevancy and Necessity of Information), 
because third-agency records obtained or made available to TSA during 
the course of an investigation may occasionally contain information that 
is not strictly relevant or necessary to a specific investigation. In 
the interests of administering an effective and comprehensive 
investigation program, it is appropriate and necessary for TSA to retain 
all such information that may aid in that process.
    (4) From subsections (e)(4)(G), (H) and (I) (Agency Requirements), 
and (f) (Agency Rules), because this system is exempt from the access 
provisions of subsections (d).
    (h) Federal Flight Deck Officer Records System (DHS/TSA 013). The 
Federal Flight Deck Officer Record System (FFDORS) (DHS/TSA 013) enables 
TSA to maintain a system of records documenting the application, 
selection, training, and requalification of pilots deputized by TSA to 
perform the duties of a Federal Flight Deck Officer (FFDO). Pursuant to 
exemptions (k)(1), (k)(2), and (k)(6) of the Privacy Act, DHS/TSA 013 is 
exempt from 5 U.S.C. 552a(c)(3), (d), and (e)(1). Exemptions from the 
particular subsections are justified for the following reasons:
    (1) From (c)(3) (Accounting of Certain Disclosures) and (d) (Access 
to Records), because access to the accounting of disclosures in this 
system could reveal the identity of a confidential source that provided 
information during the background check process. Without the ability to 
protect the identity of a confidential source, the agency's ability to 
gather pertinent information about candidates for the program may be 
limited. In addition, the system might contain information that is 
properly classified, the release of which would pose a threat to 
national security and/or foreign policy, or information the disclosure 
of which could be detrimental to the security of transportation pursuant 
to 49 U.S.C. 114(s). Finally, the agency must be able to protect against 
access to testing or examination material as release of this material 
could compromise the effectiveness of the testing and examination 
procedure itself. The examination material contained in this system is 
so similar in form and content to the examination material used in the 
selection process for TSA security screeners, or potential selection 
processes that TSA may utilize in the future, that release of the 
material would compromise the objectivity or fairness of the testing or 
examination process of those TSA employees.

[[Page 272]]

    (2) From (e)(1) (Relevancy and Necessity of Information), because 
information obtained or made available to TSA from other agencies and 
other sources during the evaluation of an individual's suitability for 
an FFDO position may occasionally include information that is not 
strictly relevant or necessary to the specific determination regarding 
that individual. In the interests of effective program administration, 
it is appropriate and necessary for TSA to collect all such information 
that may aid in the FFDO selection process.
    (i) Registered Traveler Operations Files (DHS/TSA 015). The purpose 
of this system is to pre-screen and positively identify volunteer 
travelers using advanced identification technologies and conduct a 
security threat assessment to ensure that the volunteer does not pose a 
security threat. This system may expedite the pre-boarding process for 
the traveler and improve the allocation of TSA's security resources on 
individuals who may pose a security threat. Pursuant to exemptions 
(k)(1) and (k)(2) of the Privacy Act, DHS/TSA 015 is exempt from 5 
U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H) and (I), and (f). 
Exemptions from the particular subsections are justified for the 
following reasons:
    (1) From subsection (c)(3) (Accounting for Disclosures) because 
release of the accounting of disclosures could alert the subject of 
heightened security concerns relating to an actual or potential 
criminal, civil, or regulatory violation to the existence of an 
investigative interest on the part of the Department of Homeland 
Security or another Federal law enforcement or other recipient agency. 
Disclosure of the accounting would therefore present a serious 
impediment to transportation security law enforcement efforts and 
efforts to preserve national security. Disclosure of the accounting 
would also permit the individual who is the subject of a record to 
impede the program suitability determination, which undermines the 
entire system.
    (2) From subsection (d) (Access to Records) because access to some 
of the records contained in this system of records could permit the 
individual who is the subject of a record to impede the program 
suitability determination. Amendment of the records would interfere with 
ongoing security assessment investigations and program suitability 
determinations and impose an impossible administrative burden by 
requiring such investigations to be continuously reinvestigated. The 
information contained in the system may also include classified 
information, the release of which would pose a threat to national 
defense and/or foreign policy. In addition, permitting access and 
amendment to such information also could disclose sensitive security 
information protected pursuant to 49 U.S.C. 114(s) and 49 CFR part 1520, 
the disclosure of which could be detrimental to transportation security.
    (3) From subsection (e)(1) (Relevancy and Necessity of Information) 
because in the course of screening applicants for program suitability, 
TSA must be able to review information from a variety of sources. What 
information is relevant and necessary may not always be apparent until 
after the evaluation is completed. In the interests of transportation 
security, it is appropriate to include a broad range of information that 
may aid in determining an applicant's suitability for the Registered 
Traveler program.
    (4) From subsections (e)(4)(G), (H) and (I) (Agency Requirements), 
and (f) (Agency Rules), because this system is exempt from the access 
and amendment provisions of subsection (d).
    (j) Transportation Security Intelligence Service (TSIS) Operations 
Files. Transportation Security Intelligence Service Operations Files 
(TSIS) (DHS/TSA 011) enables TSA to maintain a system of records related 
to intelligence gathering activities used to identify, review, analyze, 
investigate, and prevent violations or potential violations of 
transportation security laws. This system also contains records relating 
to determinations about individuals' qualifications, eligibility, or 
suitability for access to classified information. Pursuant to exemptions 
(j)(2), (k)(1), (k)(2), and (k)(5) of the Privacy Act, DHS/TSA 011 is 
exempt from 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (H), and (I), 
and (f). Exemptions from particular subsections are justified for the 
following reasons:

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    (1) From subsection (c)(3) (Accounting for Disclosures) because 
release of the accounting of disclosures could alert the subject of 
intelligence gather operations and reveal investigative interest on the 
part of the Transportation Security Administration, as well as the 
recipient agency. Disclosure of the accounting would therefore present a 
serious impediment to transportation security law enforcement efforts 
and efforts to preserve national security. Disclosure of the accounting 
would also permit the individual who is the subject of a record to 
impede operations and avoid detection and apprehension, which undermined 
the entire system. Disclosure of the accounting may also reveal the 
existence of information that is classified or sensitive security 
information, the release of which would be detrimental to the security 
of transportation.
    (2) From subsection (d) (Access to Records) because access to the 
records contained in this system of records could inform the subject of 
intelligence gathering operations and reveal investigative interest on 
the part of the Transportation Security Administration. Access to the 
records would permit the individual who is the subject of a record to 
impede operations and possibly avoid detection or apprehension. 
Amendment of the records would interfere with ongoing intelligence and 
law enforcement activities and impose an impossible administrative 
burden by requiring investigations to be continually reinvestigated. The 
information contained in the system may also include properly classified 
information, the release of which would pose a threat to national 
defense and/or foreign policy. In addition, permitting access and 
amendment to such information also could disclose sensitive security 
information, which could be detrimental to transportation security if 
released. This system may also include information necessary to make a 
determination as to an individual's qualifications, eligibility, or 
suitability for access to classified information, the release of which 
would reveal the identity of a source who received an express or implied 
assurance that their identity would not be revealed to the subject of 
the record.
    (3) From subsection (e)(1) (Relevancy and Necessity of Information) 
because in the course of gathering and analyzing information about 
potential threats to transportation security, the accuracy of 
information obtained or introduced occasionally may be unclear or the 
information may not be strictly relevant or necessary to a specific 
operation. In the interests of transportation security, it is 
appropriate to retain all information that may aid in identifying 
threats to transportation security and establishing other patterns of 
unlawful activity.
    (4) From subsections (e)(4)(G), (H), and (I) (Agency Requirements), 
and (f) (Agency Rules), because this system is exempt from the access 
and amendment provisions of subsection (d).
    (k) Secure Flight Records. (1) Secure Flight Records (DHS/TSA 019) 
enables TSA to maintain a system of records related to watch list 
matching applied to air passengers and to non-traveling individuals 
authorized to enter an airport sterile area. Pursuant to 5 U.S.C. 
552a(j)(2) and (k)(2), TSA is claiming the following exemptions for 
certain records within the Secure Flight Records system: 5 U.S.C. 
552a(c)(3) and (4); (d)(1), (2), (3), and (4); (e)(1), (2), (3), (4)(G) 
through (I), (5), and (8); (f), and (g).
    (2) In addition to records under the control of TSA, the Secure 
Flight system of records may include records originating from systems of 
records of other law enforcement and intelligence agencies which may be 
exempt from certain provisions of the Privacy Act. However, TSA does not 
assert exemption to any provisions of the Privacy Act with respect to 
information submitted by or on behalf of individual passengers or non-
travelers in the course of making a reservation or seeking access to a 
secured area under the Secure Flight program.
    (3) To the extent the Secure Flight system contains records 
originating from other systems of records, TSA will rely on the 
exemptions claimed for those records in the originating system of 
records. Exemptions for certain records within the Secure Flight Records 
system from particular subsections of the Privacy Act are justified for 
the following reasons:

[[Page 274]]

    (i) From subsection (c)(3) (Accounting for Disclosures) because 
giving a record subject access to the accounting of disclosures from 
records concerning him or her could reveal investigative interest on the 
part of the recipient agency that obtained the record pursuant to a 
routine use. Disclosure of the accounting could therefore present a 
serious impediment to law enforcement efforts on the part of the 
recipient agency because the individual who is the subject of the record 
would learn of third agency investigative interests and could take steps 
to evade detection or apprehension. Disclosure of the accounting also 
could reveal the details of watch list matching measures under the 
Secure Flight program, as well as capabilities and vulnerabilities of 
the watch list matching process, the release of which could permit an 
individual to evade future detection and thereby impede efforts to 
ensure transportation security.
    (ii) From subsection (c)(4) because portions of this system are 
exempt from the access and amendment provisions of subsection (d).
    (iii) From subsections (d)(1), (2), (3), and (4) because these 
provisions concern individual access to and amendment of certain records 
contained in this system, including law enforcement counterterrorism, 
investigatory and intelligence records. Compliance with these provisions 
could alert the subject of an investigation of the fact and nature of 
the investigation, and/or the investigative interest of intelligence or 
law enforcement agencies; compromise sensitive information related to 
national security; interfere with the overall law enforcement process by 
leading to the destruction of evidence, improper influencing of 
witnesses, fabrication of testimony, and/or flight of the subject; 
identify a confidential source or disclose information which would 
constitute an unwarranted invasion of another's personal privacy; reveal 
a sensitive investigative or intelligence technique; or constitute a 
potential danger to the health or safety of law enforcement personnel, 
confidential informants, and witnesses. Amendment of these records would 
interfere with ongoing counterterrorism, law enforcement, or 
intelligence investigations and analysis activities and impose an 
impossible administrative burden by requiring investigations, analyses, 
and reports to be continuously reinvestigated and revised.
    (iv) From subsection (e)(1) because it is not always possible for 
TSA or other agencies to know in advance what information is both 
relevant and necessary for it to complete an identity comparison between 
aviation passengers or certain non-travelers and a known or suspected 
terrorist. In addition, because TSA and other agencies may not always 
know what information about an encounter with a known or suspected 
terrorist will be relevant to law enforcement for the purpose of 
conducting an operational response.
    (v) From subsection (e)(2) because application of this provision 
could present a serious impediment to counterterrorism, law enforcement, 
or intelligence efforts in that it would put the subject of an 
investigation, study or analysis on notice of that fact, thereby 
permitting the subject to engage in conduct designed to frustrate or 
impede that activity. The nature of counterterrorism, law enforcement, 
or intelligence investigations is such that vital information about an 
individual frequently can be obtained only from other persons who are 
familiar with such individual and his/her activities. In such 
investigations, it is not feasible to rely upon information furnished by 
the individual concerning his own activities.
    (vi) From subsection (e)(3), to the extent that this subsection is 
interpreted to require TSA to provide notice to an individual if TSA or 
another agency receives or collects information about that individual 
during an investigation or from a third party. Should the subsection be 
so interpreted, exemption from this provision is necessary to avoid 
impeding counterterrorism, law enforcement, or intelligence efforts by 
putting the subject of an investigation, study or analysis on notice of 
that fact, thereby permitting the subject to engage in conduct intended 
to frustrate or impede that activity.
    (vii) From subsections (e)(4)(G) and (H) (Agency Requirements) and 
(f) (Agency Rules), because this system is

[[Page 275]]

exempt from the access provisions of 5 U.S.C. 552a(d).
    (viii) From subsection (e)(5) because many of the records in this 
system coming from other system of records are derived from other 
domestic and foreign agency record systems and therefore it is not 
possible for TSA to ensure their compliance with this provision, 
however, TSA has implemented internal quality assurance procedures to 
ensure that data used in the watch list matching process is as thorough, 
accurate, and current as possible. In addition, in the collection of 
information for law enforcement, counterterrorism, and intelligence 
purposes, it is impossible to determine in advance what information is 
accurate, relevant, timely, and complete. With the passage of time, 
seemingly irrelevant or untimely information may acquire new 
significance as further investigation brings new details to light. The 
restrictions imposed by (e)(5) would limit the ability of those 
agencies' trained investigators and intelligence analysts to exercise 
their judgment in conducting investigations and impede the development 
of intelligence necessary for effective law enforcement and 
counterterrorism efforts. However, TSA has implemented internal quality 
assurance procedures to ensure that the data used in the watch list 
matching process is as thorough, accurate, and current as possible.
    (ix) From subsection (e)(8) because to require individual notice of 
disclosure of information due to compulsory legal process would pose an 
impossible administrative burden on TSA and other agencies and could 
alert the subjects of counterterrorism, law enforcement, or intelligence 
investigations to the fact of those investigations when not previously 
known.
    (x) From subsection (f) (Agency Rules) because portions of this 
system are exempt from the access and amendment provisions of subsection 
(d).
    (xi) From subsection (g) to the extent that the system is exempt 
from other specific subsections of the Privacy Act.

[69 FR 35537, June 25, 2004, as amended at 70 FR 33384, June 8, 2005; 71 
FR 44227, Aug. 4, 2006; 72 FR 63709, Nov. 9, 2007]



PART 1510_PASSENGER CIVIL AVIATION SECURITY SERVICE FEES--Table of Contents



Sec.
1510.1 Applicability and purpose.
1510.3 Definitions.
1510.5 Imposition of security service fees.
1510.7 Air transportation advertisements and solicitations.
1510.9 Collection of security service fees.
1510.11 Handling of security service fees.
1510.13 Remittance of security service fees.
1510.15 Accounting and auditing requirements.
1510.17 Reporting requirements.
1510.19 Federal oversight.
1510.21 Enforcement.

    Authority: 49 U.S.C. 114, 40113, and 44940.

    Source: 66 FR 67701, Dec. 31, 2001, unless otherwise noted.



Sec.  1510.1  Applicability and purpose.

    This part prescribes a uniform fee to be paid by passengers of 
direct air carriers and foreign air carriers in air transportation, 
foreign air transportation, and intrastate air transportation 
originating at airports in the United States to pay for the costs of 
providing civil aviation security services as described in 49 U.S.C. 
44940.



Sec.  1510.3  Definitions.

    The following definitions apply in this part:
    Administrator means the Administrator of the Transportation Security 
Administration or the Administrator's designee.
    Air carrier means a citizen of the United States who undertakes 
directly to engage in or provide air transportation.
    Air transportation means intrastate, interstate or foreign air 
transportation.
    Aircraft means a device that is used or intended to be used for 
flight in the air.
    Airport means any landing area used regularly by aircraft for 
receiving or discharging passengers or cargo.
    Direct air carrier and foreign air carrier means a selling carrier.
    Foreign air carrier means any person other than a citizen of the 
United States who undertakes directly to engage in or provide air 
transportation.

[[Page 276]]

    Foreign air transportation means the carriage by aircraft of persons 
for compensation or hire between a place in the United States and any 
place outside of the United States.
    Frequent flyer award means a zero-fare award of air transportation 
that a domestic air carrier or foreign air carrier provides to a 
passenger in exchange for accumulated travel mileage credits in a 
customer loyalty program, whether or not the term frequent flyer is used 
in the definition of that program.
    Interstate air transportation means the carriage by aircraft of 
persons for compensation or hire within the United States.
    Intrastate air transportation means the carriage of persons for 
compensation or hire wholly within the same State of the United States.
    Nonrevenue passenger means a passenger receiving air transportation 
from an air carrier or foreign air carrier for which the air carrier or 
foreign air carrier does not receive remuneration.
    One-way trip means any trip that is not a round trip.
    Origin point means the location at which a trip on a complete air 
travel itinerary begins.
    Passenger enplanement means a person boarding in the United States 
in scheduled or nonscheduled service on aircraft in intrastate, 
interstate, or foreign air transportation.
    Principal means the aggregate amount of all passenger security 
services fees due to be remitted to the Transportation Security 
Administration by an air carrier as required by this part.
    Round trip means a trip on an air travel itinerary that terminates 
at the origin point.
    Selling carrier means an air carrier or foreign air carrier that 
provides or offers to provide air transportation and has control over 
the operational functions performed in providing that air 
transportation.

[66 FR 67701, Dec. 31, 2001, as amended at 68 FR 49720, Aug. 19, 2003]



Sec.  1510.5  Imposition of security service fees.

    (a) The security service fee will be $2.50 per passenger 
enplanement. The security service fee is imposed only on passengers of 
direct air carriers and foreign air carrier described in Sec.  
1510.9(a). Passengers may not be charged for more than two enplanements 
per one-way trip or four enplanements per round trip.
    (b) The security service fee will be imposed on all flight segments 
originating at an airport in the United States.
    (c) The security service fee must be imposed on passengers who 
obtained the ticket for air transportation with a frequent flyer award, 
but may not be imposed on any other nonrevenue passengers.
    (d) Passengers enplaning a flight segment outside of the United 
States are not subject to the security service fee for that enplanement.



Sec.  1510.7  Air transportation advertisements and solicitations.

    A direct air carrier and foreign air carrier must identify the 
security service fee imposed by this part as ``September 11th Security 
Fee'' in all its advertisements and solicitations for air 
transportation.



Sec.  1510.9  Collection of security service fees.

    (a) The following direct air carriers and foreign air carriers must 
collect security service fees from passengers enplaning:
    (1) A scheduled passenger or public charter passenger operation with 
an aircraft having passenger seating configuration of more than 60 
seats.
    (2) A scheduled passenger or public charter passenger operation with 
an aircraft having a passenger seating configuration of less than 61 
seats when passengers are enplaned from or deplaned into a sterile area.
    (b) Direct air carriers and foreign air carriers must collect from 
each passenger, to the extent provided in Sec.  1510.5, a security 
service fee on air transportation sold on or after February 1, 2002. The 
security service fee must be based on the air travel

[[Page 277]]

itinerary at the time the air transportation is sold. Any changes by the 
passenger to the itinerary that alter the number of enplanements are 
subject to additional collection or refund of the security service fee 
by the direct air carrier or foreign air carrier as appropriate. Direct 
air carriers and foreign air carriers are solely liable to TSA for 
additional security service fees imposed because of involuntary 
enplanement changes to the itinerary.
    (c) Whether or not the security service fee is collected as required 
by this part, the direct air carrier or foreign air carrier selling the 
air transportation is solely liable to TSA for the fee and must remit 
the fee as required in Sec.  1510.13.
    (d) Direct air carriers and foreign air carriers may not collect 
security service fees not imposed by this part.



Sec.  1510.11  Handling of security service fees.

    (a) Direct air carriers and foreign air carriers are responsible for 
the safekeeping of all security service fees from the time of collection 
to remittance.
    (b) Security service fees collected by a direct air carrier or 
foreign air carrier are held in trust by that direct carrier for the 
beneficial interest of the United States in paying for the costs of 
providing civil aviation security services described in 49 U.S.C. 44940. 
The direct air carrier or foreign air carrier holds neither legal nor 
equitable interest in the security service fees except for the right to 
retain any accrued interest on the principal amounts collected pursuant 
to Sec.  1510.13(b).
    (c) Direct air carriers and foreign air carriers must account for 
security service fees separately, but the fees may be commingled with 
the carriers' other sources of revenue.
    (d) Direct air carriers and foreign air carriers must disclose in 
their financial statements the existence and the amount of security 
service fee held in trust.



Sec.  1510.13  Remittance of security service fees.

    (a) Each direct air carrier and foreign air carrier must remit all 
security service fees imposed each calendar month to TSA, as directed by 
the Administrator, by the last calendar day of the month following the 
imposition.
    (b) Direct air carriers and foreign air carriers may retain any 
interest that accrues on the principal amounts collected between the 
date of collection and the date the fee is remitted to TSA in accordance 
with paragraph (a) of this section.
    (c) Direct air carriers and foreign air carriers are prohibited from 
retaining any portion of the principal to offset the costs of 
collecting, handling, or remitting the passenger security service fees.
    (d) Security service fees are payable to the ``Transportation 
Security Administration'' in U.S. currency and drawn on a U.S. bank.
    (1) Fees of $1,000 or more must be remitted by electronic funds 
transfer.
    (2) Fees under $1,000 may be remitted by electronic funds transfer, 
check, money order, wire transfer, or draft.
    (e) Direct air carriers and foreign air carriers are responsible for 
paying any bank processing charges on the security service fees 
collected or remitted under this part when such charges are assessed on 
the U.S. government.



Sec.  1510.15  Accounting and auditing requirements.

    (a) Direct air carriers and foreign air carriers must establish and 
maintain an accounting system to account for the security service fees 
imposed, collected, refunded and remitted. The accounting records must 
identify the airports at which the passengers were enplaned.
    (b) Each direct air carrier and foreign air carrier that collects 
security services fees from more than 50,000 passengers annually must 
provide for an audit at least annually of its security service fee 
activities or accounts.
    (c) Audits pursuant to paragraph (b) of this section must be 
performed by an independent certified public accountant and may be of 
limited scope. The accountant must express an opinion on the fairness 
and reasonableness of the direct air carrier's and foreign air carrier's 
procedures for collecting, holding, and remitting the fees. The opinion 
must also address whether the quarterly reports required in Sec.  
1510.17

[[Page 278]]

fairly represent the net transactions in the security service fee 
accounts.



Sec.  1510.17  Reporting requirements.

    (a) Each direct air carrier and foreign air carrier collecting 
security service fees must provide TSA with quarterly reports that 
provide an accounting of fees imposed, collected, refunded and remitted.
    (b) Quarterly reports must state:
    (1) The direct air carrier or foreign air carrier involved;
    (2) The total amount of September 11th Security Fees imposed on 
passengers in U.S. currency for each month during the previous quarter 
of the calendar year;
    (3) The net amount of September 11th Security Fees collected in U.S. 
currency by the direct air carrier or foreign air carrier for each month 
during the previous quarter of the calendar year;
    (4) The total amount of September 11th Security Fees refunded in 
U.S. currency by the direct air carrier or foreign air carrier for each 
month during the previous quarter of the calendar year; and
    (5) The total amount of September 11th Security Fees remitted in 
U.S. currency by the direct air carrier or foreign air carrier for each 
month during the previous quarter of the calendar year.
    (c) The report must be filed by the last day of the calendar month 
following the quarter of the calendar year in which the fees were 
imposed.

[66 FR 67701, Dec. 31, 2001, as amended at 67 FR 14881, Mar. 28, 2002]



Sec.  1510.19  Federal oversight.

    Direct air carriers and foreign air carriers must allow any 
authorized representative of the Administrator, the Secretary of 
Transportation, the Secretary of Homeland Security, the Inspector 
General of the Department of Transportation, the Inspector General of 
the Department of Homeland Security, or the Comptroller General of the 
United States to audit or review any of its books and records and 
provide any other information necessary to verify that the security 
service fees were properly collected and remitted consistent with this 
part.

[68 FR 49720, Aug. 19, 2003]



Sec.  1510.21  Enforcement.

    A direct air carrier's or foreign air carrier's failure to comply 
with the requirements 49 U.S.C. 44940 or the provisions of this part may 
be considered to be an unfair and deceptive practice in violation of 49 
U.S.C. 41712 and may also result in a claim due the United States by the 
carrier collectable pursuant to 49 CFR part 89. These remedies are in 
addition to any others remedies provided by law.



PART 1511_AVIATION SECURITY INFRASTRUCTURE FEE--Table of Contents



Sec.
1511.1 Applicability and purpose.
1511.3 Definitions.
1511.5 Imposition of Aviation Security Infrastructure Fees.
1511.7 Remittance of Aviation Security Infrastructure Fees.
1511.9 Accounting and auditing requirements.
1511.11 Federal oversight.
1511.13 Enforcement.

Appendix A to Part 1511--Aviation Security Infrastructure Fee.

    Authority: 49 U.S.C. 114, 40113, 44901, and 44940.

    Source: 67 FR 7929, Feb. 20, 2002, unless otherwise noted.



Sec.  1511.1  Applicability and purpose.

    (a) This part prescribes the imposition of a fee on air carriers and 
foreign air carriers in air transportation to pay for the costs of 
providing U.S. civil aviation security services as described in 49 
U.S.C. 44940.
    (b) For purposes of this part, the fee will be described as the 
``Aviation Security Infrastructure Fee.''



Sec.  1511.3  Definitions.

    The following definitions apply for purposes of this part. For other 
definitions that may be applicable to this part refer to 49 U.S.C. 
40102.
    Administrator means the Administrator of the Transportation Security 
Administration or the Administrator's designee.

[[Page 279]]

    Air transportation means the carriage by passenger aircraft of 
persons or property for compensation or hire in intrastate air 
transportation, interstate air transportation, or foreign air 
transportation.
    Aircraft means a device that is used or intended to be used for 
flight in the air.
    Fiscal year means the fiscal year for the Federal government, which 
begins each year October 1 and ends on September 30. The fiscal year is 
designated by the calendar year in which it ends, e.g., fiscal year 2002 
is the year beginning October 1, 2001, and ending September 30, 2002.
    Foreign air transportation means air transportation between a place 
in the United States and any place outside of the United States.
    Interstate air transportation means air transportation within the 
United States.
    Intrastate air transportation means air transportation wholly within 
the same State of the United States.
    Passenger aircraft means an aircraft that is used to transport 
passengers in air transportation.
    Property means mail, cargo, carry-on and checked baggage, and any 
other articles transported by passenger aircraft operated by an air 
carrier or foreign air carrier in air transportation, but excluding 
property transported under the ``Known Shipper Program.''

[67 FR 7929, Feb. 20, 2002, as amended at 68 FR 49720, Aug. 19, 2003]



Sec.  1511.5  Imposition of Aviation Security Infrastructure Fees.

    (a) Effective February 18, 2002, an Aviation Security Infrastructure 
Fee will be imposed on air carriers and foreign air carriers engaged in 
air transportation.
    (b) The amount of the Aviation Security Infrastructure Fee for each 
fiscal year will not exceed, in the aggregate, the amounts paid in 
calendar year 2000 by air carriers and foreign air carriers for the 
screening of passengers and property transported by passenger aircraft 
in the United States, as determined by the Administrator.
    (c) For fiscal years 2002, 2003 and 2004, the amount of the Aviation 
Security Infrastructure Fee imposed on each air carrier and foreign air 
carrier will not exceed the amount each such carrier paid for the 
screening of passengers and property transported by passenger aircraft 
in the United States during calendar year 2000, as determined by the 
Administrator.
    (d) Each air carrier and foreign air carrier that paid for the 
screening of passengers and property in calendar year 2000 must fully 
complete the form set forth in Appendix A to this part titled, 
``Calendar Year 2000 Costs Paid for Passenger and Property Screening,'' 
and submit the completed form to the Transportation Security 
Administration by May 18, 2002.
    (e) In the case of a merger, acquisition, corporate restructuring, 
reorganization, or name change involving an air carrier or foreign air 
carrier that paid for the screening of passengers and property 
transported by passenger aircraft in the United States during calendar 
year 2000, the successor entity must include those screening costs in 
Appendix A of this part and submit those costs together with its own 
costs on one form in accordance with paragraph (d) of this section. Any 
other air carrier or foreign air carrier that paid for the screening of 
passengers and property transported by passenger aircraft in the United 
States during calendar year 2000 but is no longer providing air 
transportation must also complete the form set forth in Appendix A and 
submit the form in accordance with paragraph (d) of this section.
    (f) The Administrator has determined that the information submitted 
pursuant to this part and 49 U.S.C. 44940(a)(2)(B) is Sensitive Security 
Information and is subject to the non-disclosure requirements of 49 
U.S.C. 40119(b).
    (g) The amount of the Aviation Security Infrastructure Fee imposed 
on each air carrier and foreign air carrier will be redetermined for 
fiscal years 2005 and beyond, and such redeterminations may be based on 
the carrier's respective market share or any other appropriate measure 
in lieu of the measure provided in paragraph (c) of this section.

[[Page 280]]



Sec.  1511.7  Remittance of Aviation Security Infrastructure Fees.

    (a) No later than May 31, 2002, each air carrier and foreign air 
carrier engaged in air transportation must remit to TSA.
    (1) 3.273 percent of the total amount the carrier has indicated in 
Appendix A of this part, or an amount as otherwise determined by the 
Administrator, which will represent the Aviation Security Infrastructure 
Fee due for the period running from February 18 through February 28, 
2002; and,
    (2) 16.666 percent of the total amount the carrier has indicated in 
Appendix A of this part, or an amount as otherwise determined by the 
Administrator, which will represent the Aviation Security Infrastructure 
Fee due for period running from March 1 through April 30, 2002.
    (b) Each air carrier and foreign air carrier engaged in air 
transportation must remit to TSA 8.333 percent of the total amount the 
carrier has indicated in Appendix A of this part, or an amount as 
otherwise determined by the Administrator, by the last calendar day of 
each month following May 2002 up to and including September 2004.
    (c) Each air carrier and foreign air carrier engaged in air 
transportation must remit to TSA 8.333 percent of the total amount as 
determined by the Administrator pursuant to section 1511.5(g) of this 
part by the last calendar day of each month following September 2004.
    (d) Aviation Security Infrastructure Fees must be payable to the 
``Transportation Security Administration'' in U.S. currency and drawn on 
a U.S. bank.
    (1) Aviation Security Infrastructure Fees of $1,000 or more must be 
remitted by electronic funds transfer.
    (2) Aviation Security Infrastructure Fees under $1,000 may be 
remitted by electronic funds transfer, check, money order, wire 
transfer, or draft.
    (e) Air carriers and foreign air carriers are responsible for paying 
any bank processing charges on Aviation Security Infrastructure Fees 
remitted under this part when such charges are assessed on the U.S. 
government.

[67 FR 7929, Feb. 20, 2002; 67 FR 8579, Feb. 25, 2002]



Sec.  1511.9  Accounting and auditing requirements.

    (a) Each air carrier and foreign air carrier must submit an audit 
performed by an independent certified public accountant of the 
information provided pursuant to this part to the Transportation 
Security Administration by July 1, 2002. The cost of the audit will be 
borne by the carrier. The accountant must express an opinion as to the 
fairness and reasonableness of the air carrier's and foreign air 
carrier's procedures used for accounting and remitting the fees. The 
accountant's working papers with respect to the audit must accompany 
this submission.
    (b) Each air carrier and foreign air carrier must maintain and 
retain any and all documents, records, or information related to the 
amount of the Aviation Security Infrastructure Fees imposed on the 
carrier pursuant to this part, including all information applicable to 
the costs submitted in Appendix A, and information that is reasonably 
necessary to complete an audit.



Sec.  1511.11  Federal oversight.

    (a) Upon request, air carriers and foreign air carriers must allow 
any authorized representative of the Administrator, the Secretary of 
Transportation, the Secretary of Homeland Security, the Inspector 
General of the Department of Transportation, the Inspector General of 
the Department of Homeland Security, or the Comptroller General of the 
United States to audit or review any of the books and records and 
provide any other information necessary to verify that:
    (1) The information submitted pursuant to 49 U.S.C. 44940(a)(2)(B) 
and this part, including that provided in Appendix A, is true and 
correct; or
    (2) The Aviation Security Infrastructure Fees were remitted 
consistent with this part.

[67 FR 7929, Feb. 20, 2002, as amended at 68 FR 49720, Aug. 19, 2003]



Sec.  1511.13  Enforcement.

    (a) In addition to any other remedies allowed by law, willful 
falsification by any party, directly or indirectly, of information 
provided by an air carrier or

[[Page 281]]

foreign air carrier pursuant to this part, including information 
submitted in Appendix A as required by section 1511.5 of this part, may 
be prosecuted criminally resulting in a fine and/or imprisonment under 
18 U.S.C 1001.
    (b) An air carrier's or foreign air carrier's failure to comply with 
the requirements of 49 U.S.C. 44940 or the provisions of this part may 
result in a claim due the United States by the carrier, which claim 
shall be collectable pursuant to 31 U.S.C. Chapter 37 and the Department 
of Transportation's implementing regulations at 49 CFR part 89.



   Sec. Appendix A to Part 1511--Aviation Security Infrastructure Fee

                              Instructions

                            General guidance

    When filling out this form, the responding air carrier or foreign 
air carrier shall include all costs incurred in calendar year 2000 by 
that air carrier for the screening of passengers and property. Costs are 
those attributed to the screening of passengers and property in the 
United States for both flights within the United States and flights from 
the United States to foreign destinations. Reported costs must be 
consistent with the air carrier's financial accounting information 
reported in accordance with generally accepted accounting principles.
    Where actual costs of screening passengers and property cannot be 
directly identified through an air carrier's accounting system, the air 
carrier shall use an appropriate alternate cost assignment methodology. 
Documentation that explains and supports the assignment methodology 
used, the applicable pool and the allocation basis must be made 
available upon request. For costs related to capitalized property, 
please report the associated depreciation expense incurred during 
calendar year 2000. Capitalization policy must also be made available 
upon request.
    To the extent necessary, the reporting air carrier may aggregate 
those specific costs that have been incurred but cannot be stated in the 
detailed cost categories requested by this form. However, all of the 
costs identified by this form must be included in the total 
calculations. In addition, explanations regarding costs that have been 
aggregated need to be provided. Costs reported in Appendix A do not need 
to include costs that may have been incurred for a position higher than 
those of the air carrier's director of security (or equivalent). Costs 
incurred for higher positions, such as those of the air carrier's chief 
executive officer, do not need to be included.
    When including cost information on acquired and/or merged air 
carriers, the successor air carrier must specify the names of all of 
such entities whose calendar year 2000 passenger and property screening 
costs are included in that air carrier's submission as Appendix A.
    The costs listed below are to be in US dollars, rounded to the 
nearest dollar. Place a zero in the appropriate box to indicate cost 
categories in which the air carrier did not incur costs for passenger 
and property screening in calendar year 2000.

                            Supporting Notes

    Examples of cost types that appear in the supporting notes below are 
for illustrative purposes only and are not intended to set forth all 
relevant costs that must be reported by air carriers and foreign air 
carriers. In submitting information to TSA, air carriers and foreign air 
carriers must submit all of their relevant costs, regardless of whether 
those costs have been specifically illustrated in the notes.

                           Submission of Data

    This form will be available electronically from the Department of 
Transportation's website at www.dot.gov. Air carriers are asked to 
return the completed form by certified mail to: Chief Financial Officer, 
Transportation Security Administration, Department of Transportation, 
400 Seventh Street SW, Washington, DC 20590. Please also submit the same 
information in Microsoft Word either on a computer disk or by e-mail to 
[email protected].

                         Confidentiality of Data

    Consistent with 49 CFR Sec.  1511.5(f), information submitted in 
Appendix A is deemed to be Sensitive Security Information and will be so 
protected from public disclosure under 49 U.S.C. 40119(b). In addition, 
confidential business information and economic information provided in 
Appendix A will be protected from public disclosure, as appropriate, 
under 5 U.S.C. Sec.  552 (the Freedom of Information Act), 14 CFR Sec.  
302.12, and 18 U.S.C. Sec.  1905. Requests for confidentiality must be 
filed with the Office of the General Counsel, Department of 
Transportation (C-10), 400 Seventh Street, SW, Room 10102, Washington, 
DC 20590.

[[Page 282]]

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[[Page 283]]


[GRAPHIC] [TIFF OMITTED] TR20FE02.008


[[Page 284]]


[GRAPHIC] [TIFF OMITTED] TR20FE02.009


[[Page 285]]


[GRAPHIC] [TIFF OMITTED] TR20FE02.010

                            Supporting Notes

    a. These are costs that the air carrier incurred directly. Includes 
costs incurred for air carrier personnel salaries and benefits, 
equipment owned, leased or rented directly by that air carrier and any 
other costs directly incurred.
    b. These are costs that the air carrier incurred through contracts 
with security firms. Includes personnel, equipment and other costs 
incurred through contracts with third party security companies.
    c. These are costs that the air carrier incurred through other 
means. Includes costs incurred through air carrier security consortiums.
    1. Salary, benefits, overtime, retirement and other costs of 
checkpoint screening personnel.

[[Page 286]]

    2. Salary, benefits, overtime, retirement and other costs of exit 
lane monitors.
    3. Salary, benefits, overtime, retirement and other costs of cargo 
screeners.
    4. Salary, benefits, overtime, retirement and other costs of checked 
baggage screeners.
    5. Salary, benefits, overtime, retirement and other costs of all 
baggage runners who move property such as baggage to and from screening 
areas.
    6. Salary, benefits, overtime, retirement and other costs of all 
supervisory personnel, including Checkpoint Screening Supervisors.
    7. All associated expensed non-labor costs including computers, 
communications equipment, time management systems, supplies, parking, 
identification badging, furniture, fixtures, and travel.
    8. All costs of performing required background investigations on all 
screening personnel and supervisors. Screening personnel and supervisors 
includes checkpoint screening personnel, exit lane monitors, cargo 
screeners, checked baggage screeners, baggage runners, and their 
supervisors.
    9. All costs incurred for the training and testing of all screening 
personnel and supervisors, including initial, recurrent and remedial 
training. Includes any computer-based training and the development of 
training programs for the screening of persons and property as well as 
any travel, room and board, and all other such expenses related to 
training.
    10. The costs of implementing and maintaining training records for 
all screening personnel and supervisors.
    11. The costs of completing evaluations for all screening personnel 
and supervisors.
    12. All costs for drug and alcohol testing as well as any associated 
counseling and/or treatment for all screening personnel and supervisors.
    13. All costs of renting, purchasing, maintaining, and/or cleaning 
of uniforms and any related equipment such as flashlights and batons for 
all screening personnel and supervisors.
    14. All costs incurred by air carriers for the use of canines and 
their handlers used for the screening of persons and property.
    15. All costs associated with obtaining security clearances for 
personnel relating to the screening of persons and property.
    16. All costs associated with the purchase, installation, and 
testing of all screening equipment. In instances where the equipment is 
capitalized, provide the depreciation expense in lieu of costs 
associated with purchase, installation, and final acceptance testing. 
This includes such equipment as Metal Detection Devices, Hand Wands, X-
ray screening machines, Explosives Trace Detection Devices, Explosives 
Detection Systems, or any other such similar technologies. Includes any 
costs incurred or depreciation costs recognized in calendar year 2000 
for the modification and/or construction of any facility needed to 
accommodate screening, including architecture and engineering. Also 
includes the costs of any refurbishment and/or modernization of the 
equipment.
    17. Costs of operating, maintaining, and calibrating installed 
screening equipment. This includes such equipment as Metal Detection 
Devices, Hand Wands, X-ray screening machines, Explosives Trace 
Detection Devices, Explosives Detection Systems, or any other such 
similar technologies. Includes such costs as test objects and X-ray 
radiation surveys, electricity costs and maintenance contract costs 
incurred for the operations of such equipment.
    18. Costs of maintaining integrity of sterile areas. Includes costs 
of opening sterile areas, emergency evacuations of sterile areas, and 
re-screenings not included elsewhere.
    19. The cost of purchase or rent, installation, testing, and 
maintenance of checkpoint signs, barriers, lane markers, and exit lane 
doors.
    20. Any additional costs for special screening such as for disabled 
passengers, VIP passengers, classified and/or high value items.
    21. All security company contract costs for the screening of persons 
and property that cannot be detailed into any other cost category.
    22. All direct costs for the real estate utilized for the screening 
of persons and property. Includes space at airports for the performance 
of these functions, as well as such space used for break rooms, private 
screening rooms, storages space, training rooms, and office space. Also 
includes appropriate space for the oversight of the screening functions 
outside of airports such as in headquarters or regional offices.
    23. All costs for utilities used for screening. Includes 
electricity, heating/ventilation/cooling, and telecommunications costs 
not elsewhere specified.
    24. All costs incurred for the Ground Security Coordinator's 
oversight of the screening functions. Includes personnel salaries, 
benefits, retirement, training, and non-labor costs.
    25. All air carrier head office, regional, or airport specific costs 
associated with the administration and oversight of screening not 
elsewhere specified. Includes personnel salaries, benefits, retirement, 
training, and non-labor costs.
    26. All costs associated with the administration and oversight of 
screening contracts. Includes personnel, benefits, retirement, training, 
and non-labor costs.
    27. All costs not elsewhere specified for background audit checks 
for all screeners and supervisors.
    28. All legal support costs incurred during calendar year 2000 
relating to aviation security screening. Includes legal assistance for

[[Page 287]]

the implementation and execution of security screening contracts.
    29. All costs for accounting and financial services incurred for the 
support of the screening functions.
    30. Includes all labor and non-labor costs for such items as human 
resource administration, clerical assistance, information technology, 
and other support functions related to screening.
    31. All insurance costs relating to screening. Includes worker's 
compensation and general liability insurance.
    32. All costs incurred by the air carriers for law enforcement 
personnel costs that were reimbursed by the air carriers for services 
performed in connection with the screening of persons and property.
    33. All costs associated with the recruitment of screening personnel 
and supervisors. Includes signing bonuses, travel, and other recruitment 
expenses.
    34. Any costs incurred for fees charged by other organizations for 
the management of contracts for the screening of persons and property.
    35. Any costs incurred not elsewhere specified during calendar year 
2000 for the screening of passengers and property. These costs should be 
itemized on a separate sheet. Includes any fines or monetary penalties 
incurred for screening as well as any profit/bonuses paid to contractors 
for screening services not included elsewhere on the form.

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[GRAPHIC] [TIFF OMITTED] TR20FE02.011


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[GRAPHIC] [TIFF OMITTED] TR20FE02.012



PART 1515_APPEAL AND WAIVER PROCEDURES FOR SECURITY THREAT ASSESSMENTS FOR INDIVIDUALS--Table of Contents



Sec.
1515.1 Scope.
1515.3 Terms used in this part.
1515.5 Appeal of Initial Determination of Threat Assessment based on 
          criminal conviction, immigration status, or mental capacity.
1515.7 Procedures for waiver of criminal offenses, immigration status, 
          or mental capacity standards.
1515. 9 Appeal of security threat assessment based on other analyses.
1515.11 Review by administrative law judge and TSA Final Decision Maker.

    Authority: 46 U.S.C. 70105; 49 U.S.C. 114, 5103a, 40113, and 46105; 
18 U.S.C. 842, 845; 6 U.S.C. 469.

    Source: 72 FR 3588, Jan. 25, 2007, unless otherwise noted.



Sec.  1515.1  Scope.

    (a) Appeal. This part applies to applicants who are appealing an 
Initial Determination of Threat Assessment or an Initial Determination 
of Threat Assessment and Immediate Revocation in a security threat 
assessment (STA) as described in each of the following:
    (1) 49 CFR part 1572 for a hazardous materials endorsement (HME) or 
a Transportation Worker Identification Credential (TWIC).

[[Page 290]]

    (2) 49 CFR part 1540, subpart C, which includes individuals engaged 
in air cargo operations who work for certain aircraft operators, foreign 
air carriers, IACs, certified cargo screening facilities, or validation 
firms.
    (b) Waivers. This part applies to applicants for an HME or TWIC who 
undergo a security threat assessment described in 49 CFR part 1572 and 
are eligible to request a waiver of certain standards.

[72 FR 3588, Jan. 25, 2007, as amended at 74 FR 47695, Sept. 16, 2009]



Sec.  1515.3  Terms used in this part.

    The terms used in 49 CFR parts 1500, 1540, 1570, and 1572 also apply 
in this part. In addition, the following terms are used in this part:
    Administrative law judge means an administrative law judge appointed 
pursuant to the provisions of 5 U.S.C. 3105.
    Applicant means an individual who has applied for one of the 
security threat assessments identified in 49 CFR 1515.1. This includes 
an individual who previously applied for and was found to meet the 
standards for the security threat assessment but TSA later determined 
that the individual poses a security threat.
    Date of service means--
    (1) In the case of personal service, the date of personal delivery 
to the residential address listed on the application;
    (2) In the case of mailing with a certificate of service, the date 
shown on the certificate of service;
    (3) In the case of mailing and there is no certificate of service, 
10 days from the date mailed to the address designated on the 
application as the mailing address;
    (4) In the case of mailing with no certificate of service or 
postmark, the date mailed to the address designated on the application 
as the mailing address shown by other evidence; or
    (5) The date on which an electronic transmission occurs.
    Day means calendar day.
    Final Agency Order means an order issued by the TSA Final Decision 
Maker.
    Decision denying a review of a waiver means a document issued by an 
administrative law judge denying a waiver requested under 49 CFR 1515.7.
    Mail includes U.S. mail, or use of an express courier service.
    Party means the applicant or the agency attorney.
    Personal delivery includes hand-delivery or use of a contract or 
express messenger service, but does not include the use of Government 
interoffice mail service.
    Properly addressed means a document that shows an address contained 
in agency records, a residential, business, or other address submitted 
by a person on any document provided under this subpart, or any other 
address shown by other reasonable and available means.
    Substantial Evidence means such relevant evidence as a reasonable 
person might accept as adequate to support a conclusion.
    Security threat assessment means the threat assessment for which the 
applicant has applied, as described in 49 CFR 1515.1.
    TSA Final Decision Maker means the Administrator, acting in the 
capacity of the decision maker on appeal, or any person to whom the 
Administrator has delegated the Administrator's decision-making 
authority. As used in this subpart, the TSA Final Decision Maker is the 
official authorized to issue a final decision and order of the 
Administrator.



Sec.  1515.5  Appeal of Initial Determination of Threat Assessment based on criminal conviction, immigration status, or mental capacity.

    (a) Scope. This section applies to applicants appealing from an 
Initial Determination of Threat Assessment that was based on one or more 
of the following:
    (1) TSA has determined that an applicant for an HME or a TWIC has a 
disqualifying criminal offense described in 49 CFR 1572.103.
    (2) TSA has determined that an applicant for an HME or a TWIC does 
not meet the immigration status requirements as described in 49 CFR 
1572.105.
    (3) TSA has determined that an applicant for an HME or a TWIC is 
lacking mental capacity as described in 49 CFR 1572.109.
    (b) Grounds for appeal. An applicant may appeal an Initial 
Determination of

[[Page 291]]

Threat Assessment if the applicant is asserting that he or she meets the 
standards for the security threat assessment for which he or she is 
applying.
    (1) Initiating an appeal. An applicant initiates an appeal by 
submitting a written reply to TSA, a written request for materials from 
TSA, or by requesting an extension of time in accordance with Sec.  
1515.5(f). If the applicant does not initiate an appeal within 60 days 
of receipt, the Initial Determination of Threat Assessment becomes a 
Final Determination of Threat Assessment.
    (i) In the case of an HME, TSA also serves a Final Determination of 
Threat Assessment on the licensing State.
    (ii) In the case of a mariner applying for TWIC, TSA also serves a 
Final Determination of Threat Assessment on the Coast Guard.
    (iii) In the case of a TWIC, TSA serves a Final Determination of 
Threat Assessment on the appropriate Federal Maritime Security 
Coordinator (FMSC).
    (2) Request for materials. Within 60 days of the date of service of 
the Initial Determination of Threat Assessment, the applicant may serve 
upon TSA a written request for copies of the materials upon which the 
Initial Determination was based.
    (3) TSA response. (i) Within 60 days of receiving the applicant's 
request for materials, TSA serves the applicant with copies of the 
releasable materials upon the applicant on which the Initial 
Determination was based. TSA will not include any classified information 
or other protected information described in paragraph (f) of this 
section.
    (ii) Within 60 days of receiving the applicant's request for 
materials or written reply, TSA may request additional information or 
documents from the applicant that TSA believes are necessary to make a 
Final Determination.
    (4) Correction of records. If the Initial Determination of Threat 
Assessment was based on a record that the applicant believes is 
erroneous, the applicant may correct the record, as follows:
    (i) The applicant contacts the jurisdiction or entity responsible 
for the information and attempts to correct or complete information 
contained in his or her record.
    (ii) The applicant provides TSA with the revised record, or a 
certified true copy of the information from the appropriate entity, 
before TSA determines that the applicant meets the standards for the 
security threat assessment.
    (5) Reply. (i) The applicant may serve upon TSA a written reply to 
the Initial Determination of Threat Assessment within 60 days of service 
of the Initial Determination, or 60 days after the date of service of 
TSA's response to the applicant's request for materials under paragraph 
(b)(1) of this section, if the applicant served such request. The reply 
must include the rationale and information on which the applicant 
disputes TSA's Initial Determination.
    (ii) In an applicant's reply, TSA will consider only material that 
is relevant to whether the applicant meets the standards applicable for 
the security threat assessment for which the applicant is applying.
    (6) Final determination. Within 60 days after TSA receives the 
applicant's reply, TSA serves a Final Determination of Threat Assessment 
or a Withdrawal of the Initial Determination as provided in paragraphs 
(c) or (d) of this section.
    (c) Final Determination of Threat Assessment. (1) If the Assistant 
Administrator concludes that an HME or TWIC applicant does not meet the 
standards described in 49 CFR 1572.103, 1572.105, or 1572.109, TSA 
serves a Final Determination of Threat Assessment upon the applicant. In 
addition--
    (i) In the case of an HME, TSA serves a Final Determination of 
Threat Assessment on the licensing State.
    (ii) In the case of a TWIC, TSA serves a Final Determination of 
Threat Assessment on the Coast Guard.
    (2) The Final Determination includes a statement that the Assistant 
Administrator has reviewed the Initial Determination, the applicant's 
reply and any accompanying information, and any other materials or 
information available to him or her, and has determined that the 
applicant poses a security threat warranting denial of the security 
threat assessment for which the applicant has applied.

[[Page 292]]

    (d) Withdrawal of Initial Determination. If the Assistant 
Administrator or Assistant Secretary concludes that the applicant does 
not pose a security threat, TSA serves a Withdrawal of the Initial 
Determination upon the applicant, and the applicant's employer where 
applicable.
    (e) Nondisclosure of certain information. In connection with the 
procedures under this section, TSA does not disclose classified 
information to the applicant, as defined in E.O. 12968 sec. 1.1(d), and 
reserves the right not to disclose any other information or material not 
warranting disclosure or protected from disclosure under law.
    (f) Extension of time. TSA may grant an applicant an extension of 
time of the limits for good cause shown. An applicant's request for an 
extension of time must be in writing and be received by TSA within a 
reasonable time before the due date to be extended; or an applicant may 
request an extension after the expiration of a due date by sending a 
written request describing why the failure to file within the time 
limits was excusable. TSA may grant itself an extension of time for good 
cause.
    (g) Judicial review. For purposes of judicial review, the Final 
Determination of Threat Assessment constitutes a final TSA order of the 
determination that the applicant does not meet the standards for a 
security threat assessment, in accordance with 49 U.S.C. 46110. The 
Final Determination is not a final TSA order to grant or deny a waiver, 
the procedures for which are in 49 CFR 1515.7 and 1515.11.
    (h) Appeal of immediate revocation. If TSA directs an immediate 
revocation, the applicant may appeal this determination by following the 
appeal procedures described in paragraph (b) of this section. This 
applies--
    (1) If TSA directs a State to revoke an HME pursuant to 49 CFR 
1572.13(a).
    (2) If TSA invalidates a TWIC by issuing an Initial Determination of 
Threat Assessment and Immediate Revocation pursuant to 49 CFR 
1572.21(d)(3).

[72 FR 3588, Jan. 25, 2007; 72 FR 14049, Mar. 26, 2007]



Sec.  1515.7  Procedures for waiver of criminal offenses, immigration status, or mental capacity standards.

    (a) Scope. This section applies to the following applicants:
    (i) An applicant for an HME or TWIC who has a disqualifying criminal 
offense described in 49 CFR 1572.103(a)(5) through (a)(12) or 
1572.103(b) and who requests a waiver.
    (ii) An applicant for an HME or TWIC who is an alien under temporary 
protected status as described in 49 CFR 1572.105 and who requests a 
waiver.
    (iii) An applicant applying for an HME or TWIC who lacks mental 
capacity as described in 49 CFR 1572.109 and who requests a waiver.
    (b) Grounds for waiver. TSA may issue a waiver of the standards 
described in paragraph (a) and grant an HME or TWIC if TSA determines 
that an applicant does not pose a security threat based on a review of 
information described in paragraph (c) of this section.
    (c) Initiating waiver. (1) An applicant initiates a waiver as 
follows:
    (i) Providing to TSA the information required in 49 CFR 1572.9 for 
an HME or 49 CFR 1572.17 for a TWIC.
    (ii) Paying the fees required in 49 CFR 1572.405 for an HME or in 49 
CFR 1572.501 for a TWIC.
    (iii) Sending a written request to TSA for a waiver at any time, but 
not later than 60 days after the date of service of the Final 
Determination of Threat Assessment. The applicant may request a waiver 
during the application process, or may first pursue some or all of the 
appeal procedures in 49 CFR 1515.5 to assert that he or she does not 
have a disqualifying condition.
    (2) In determining whether to grant a waiver, TSA will consider the 
following factors, as applicable to the disqualifying condition:
    (i) The circumstances of the disqualifying act or offense.
    (ii) Restitution made by the applicant.
    (iii) Any Federal or State mitigation remedies.
    (iv) Court records or official medical release documents indicating 
that the applicant no longer lacks mental capacity.
    (v) Other factors that indicate the applicant does not pose a 
security

[[Page 293]]

threat warranting denial of the HME or TWIC.
    (d) Grant or denial of waivers. (1) The Assistant Administrator will 
send a written decision granting or denying the waiver to the applicant 
within 60 days of service of the applicant's request for a waiver, or 
longer period as TSA may determine for good cause.
    (2) In the case of an HME, if the Assistant Administrator grants the 
waiver, the Assistant Administrator will send a Determination of No 
Security Threat to the licensing State within 60 days of service of the 
applicant's request for a waiver, or longer period as TSA may determine 
for good cause.
    (3) In the case of a mariner applying for a TWIC, if the Assistant 
Administrator grants the waiver, the Assistant Administrator will send a 
Determination of No Security Threat to the Coast Guard within 60 days of 
service of the applicant's request for a waiver, or longer period as TSA 
may determine for good cause.
    (4) If the Assistant Administrator denies the waiver the applicant 
may seek review in accordance with 49 CFR 1515.11. A denial of a waiver 
under this section does not constitute a final order of TSA as provided 
in 49 U.S.C. 46110.
    (e) Extension of time. TSA may grant an applicant an extension of 
the time limits for good cause shown. An applicant's request for an 
extension of time must be in writing and be received by TSA within a 
reasonable time before the due date to be extended; or an applicant may 
request an extension after the expiration of a due date by sending a 
written request describing why the failure to file within the time 
limits was excusable. TSA may grant itself an extension of time for good 
cause.



Sec.  1515.9  Appeal of security threat assessment based on other analyses.

    (a) Scope. This section applies to an applicant appealing an Initial 
Determination of Threat Assessment as follows:
    (1) TSA has determined that the applicant for an HME or TWIC poses a 
security threat as provided in 49 CFR 1572.107.
    (2) TSA had determined that an air cargo worker poses a security 
threat as provided in 49 CFR 1540.205.
    (3) TSA had determined that an individual engaged in air cargo 
operations who works for certain aircraft operators, foreign air 
carriers, indirect air carriers (IACs), certified cargo screening 
facilities, or validation firms poses a security threat as provided in 
49 CFR 1549.109.
    (b) Grounds for appeal. An applicant may appeal an Initial 
Determination of Threat Assessment if the applicant is asserting that he 
or she does not pose a security threat. The appeal will be conducted in 
accordance with the procedures set forth in 49 CFR 1515.5(b), (e), and 
(f) and this section.
    (c) Final Determination of Threat Assessment. (1) If the Assistant 
Administrator concludes that the applicant poses a security threat, 
following an appeal, TSA serves a Final Determination of Threat 
Assessment upon the applicant. In addition--
    (i) In the case of an HME, TSA serves a Final Determination of 
Threat Assessment on the licensing State.
    (ii) In the case of a TWIC, TSA serves a Final Determination of 
Threat Assessment on the Coast Guard.
    (iii) In the case of an air cargo worker, TSA serves a Final 
Determination of Threat Assessment on the operator.
    (iv) In the case of a certified cargo screening facilities worker, 
TSA serves a Final Determination of Threat Assessment on the operator.
    (v) In the case of a validator of certified cargo screening 
facilities, TSA serves a Final Determination of Threat Assessment on the 
operator.
    (2) The Final Determination includes a statement that the Assistant 
Administrator has reviewed the Initial Determination, the applicant's 
reply and any accompanying information, and any other materials or 
information available to him or her, and has determined that the 
applicant poses a security threat warranting denial of the security 
threat assessment for which the applicant has applied.
    (d) Withdrawal of Initial Determination. If the Assistant 
Administrator concludes that the applicant does not pose a security 
threat, TSA serves a

[[Page 294]]

Withdrawal of the Initial Determination upon the applicant, and the 
applicant's employer where applicable.
    (e) Further review. If the Assistant Administrator denies the 
appeal, the applicant may seek review in accordance with Sec.  1515.11 
of this part. A Final Determination issued under this section does not 
constitute a final order of TSA as provided in 49 U.S.C. 46110.
    (f) Appeal of immediate revocation. If TSA directs an immediate 
revocation, the applicant may appeal this determination by following the 
appeal procedures described in paragraph (b) of this section. This 
applies--
    (1) If TSA directs a State to revoke an HME pursuant to 49 CFR 
1572.13(a).
    (2) If TSA invalidates a TWIC by issuing an Initial Determination of 
Threat Assessment and Immediate Revocation pursuant to 49 CFR 
1572.21(d)(3).
    (3) If TSA withdraws a Determination of No Security Threat for an 
individual engaged in air cargo operations who works for certain 
aircraft operators, foreign air carriers, IACs, certified cargo 
screening facilities, or validation firms.

[72 FR 3588, Jan. 25, 2007, as amended at 74 FR 47695, Sept. 16, 2009]



Sec.  1515.11  Review by administrative law judge and TSA Final Decision Maker.

    (a) Scope. This section applies to the following applicants:
    (1) An applicant who seeks review of a decision by TSA denying a 
request for a waiver under 49 CFR 1515.7.
    (2) An applicant for an HME or a TWIC who has been issued a Final 
Determination of Threat Assessment on the grounds that he or she poses a 
security threat after an appeal as described in 49 CFR 1515.9.
    (3) An individual engaged in air cargo operations who works for 
certain aircraft operators, foreign air carriers, IACs, certified cargo 
screening facilities, or validation firms who has been issued a Final 
Determination of Threat Assessment after an appeal as described in 49 
CFR 1515.9.
    (b) Request for review. No later than 30 calendar days from the date 
of service of the decision by TSA denying a waiver or of the Final 
Determination of Threat Assessment, the applicant may request a review. 
The review will be conducted by an administrative law judge who 
possesses the appropriate security clearance necessary to review 
classified or otherwise protected information and evidence. If the 
applicant fails to seek review within 30 calendar days, the Final 
Determination of Threat Assessment will be final with respect to the 
parties.
    (1) The request for review must clearly state the issue(s) to be 
considered by the administrative law judge (ALJ), and include the 
following documents in support of the request:
    (i) In the case of a review of a denial of waiver, a copy of the 
applicant's request for a waiver under 49 CFR 1515.7, including all 
materials provided by the applicant to TSA in support of the waiver 
request; and a copy of the decision issued by TSA denying the waiver 
request. The request for review may not include evidence or information 
that was not presented to TSA in the request for a waiver under 49 CFR 
1515.7. The ALJ may consider only evidence or information that was 
presented to TSA in the waiver request. If the applicant has new 
evidence or information, the applicant must file a new request for a 
waiver under Sec.  1515.7 and the pending request for review of a denial 
of a waiver will be dismissed.
    (ii) In the case of a review of a Final Determination of Threat 
Assessment, a copy of the Initial Notification of Threat Assessment and 
Final Notification of Threat Assessment; and a copy of the applicant's 
appeal under 49 CFR 1515.9, including all materials provided by the 
applicant to TSA in support of the appeal. The request for review may 
not include evidence or information that was not presented to TSA in the 
appeal under Sec.  1515.9. The ALJ may consider only evidence or 
information that was presented to TSA in the appeal. If the applicant 
has new evidence or information, the applicant must file a new appeal 
under Sec.  1515.9 and the pending request for review of the Final 
Determination will be dismissed.
    (2) The applicant may include in the request for review a request 
for an in-person hearing before the ALJ.

[[Page 295]]

    (3) The applicant must file the request for review with the ALJ 
Docketing Center, U.S. Coast Guard, 40 S. Gay Street, Room 412, 
Baltimore, Maryland 21202-4022, ATTN: Hearing Docket Clerk.
    (c) Extension of Time. The ALJ may grant an extension of the time 
limits described in this section for good cause shown. A request for an 
extension of time must be in writing and be received by the ALJ within a 
reasonable time before the due date to be extended; or an applicant may 
request an extension after the expiration of a due date by sending a 
written request describing why the failure to file within the time 
limits was excusable. This paragraph does not apply to time limits set 
by the administrative law judge during the hearing.
    (d) Duties of the Administrative Law Judge. The ALJ may:
    (1) Receive information and evidence presented to TSA in the request 
for a waiver under 49 CFR 1515.7 or an appeal under 49 CFR 1515.9.
    (2) Consider the following criteria to determine whether a request 
for an in-person hearing is warranted:
    (i) The credibility of evidence or information submitted in the 
applicant's request for a waiver; and
    (ii) Whether TSA's waiver denial was made in accordance with the 
governing regulations codified at 49 CFR part 1515 and 49 CFR part 1572.
    (3) Give notice of and hold conferences and hearings;
    (4) Administer oaths and affirmations;
    (5) Examine witnesses;
    (6) Regulate the course of the hearing including granting extensions 
of time limits; and
    (7) Dispose of procedural motions and requests, and issue a 
decision.
    (e) Hearing. If the ALJ grants a request for a hearing, except for 
good cause shown, it will begin within 60 calendar days of the date of 
receipt of the request for hearing. The hearing is a limited discovery 
proceeding and is conducted as follows:
    (1) If applicable and upon request, TSA will provide to the 
applicant requesting a review an unclassified summary of classified 
evidence upon which the denial of the waiver or Final Determination was 
based.
    (i) TSA will not disclose to the applicant, or the applicant's 
counsel, classified information, as defined in E.O. 12968 section 
1.1(d).
    (ii) TSA reserves the right not to disclose any other information or 
material not warranting disclosure or protected from disclosure by law 
or regulation.
    (2) The applicant may present the case by oral testimony, 
documentary, or demonstrative evidence, submit rebuttal evidence, and 
conduct cross-examination, as permitted by the ALJ. Oral testimony is 
limited to the evidence or information that was presented to TSA in the 
request for a waiver or during the appeal. The Federal Rules of Evidence 
may serve as guidance, but are not binding.
    (3) The ALJ will review any classified information on an ex parte, 
in camera basis, and may consider such information in rendering a 
decision if the information appears to be material and relevant.
    (4) The standard of proof is substantial evidence on the record.
    (5) The parties may submit proposed findings of fact and conclusions 
of law.
    (6) If the applicant fails to appear, the ALJ may issue a default 
judgment.
    (7) A verbatim transcript will be made of the hearing and will be 
provided upon request at the expense of the requesting party. In cases 
in which classified or otherwise protected evidence is received, the 
transcript may require redaction of the classified or otherwise 
protected information.
    (8) The hearing will be held at TSA's Headquarters building or, on 
request of a party, at an alternate location selected by the 
administrative law judge for good cause shown.
    (f) Decision of the Administrative Law Judge. (1) The record is 
closed once the certified transcript and all documents and materials 
have been submitted for the record.
    (2) The ALJ issues an unclassified written decision to the applicant 
no later than 30 calendar days from the close of the record and serves 
the decision on the parties. The ALJ may issue a classified decision to 
TSA.

[[Page 296]]

    (3) The ALJ's decision may be appealed by either party to the TSA 
Final Decision Maker in accordance with paragraph (g).
    (i) In the case of review of a waiver denial, unless appealed to the 
TSA Final Decision Maker, if the ALJ upholds the denial of the 
applicant's request for waiver, TSA will issue a Final Order Denying a 
Waiver to the applicant.
    (ii) In the case of review of a waiver denial, unless appealed to 
the TSA Final Decision Maker, if the ALJ reverses the denial of the 
applicant's request for waiver, TSA will issue a Final Order granting a 
waiver to the applicant; and
    (A) In the case of an HME, send a Determination of No Security 
Threat to the licensing State.
    (B) In the case applicant for a TWIC, send a Determination of No 
Security Threat to the Coast Guard.
    (C) In the case of an air cargo worker, send a Determination of No 
Security Threat to the operator.
    (iii) In the case of review of an appeal under 49 CFR 1515.9, unless 
appealed to the TSA Final Decision Maker, if the ALJ determines that the 
applicant poses a security threat, TSA will issue a Final Order of 
Threat Assessment to the applicant.
    (iv) In the case of review of an appeal under 49 CFR 1515.9, unless 
appealed to the TSA Final Decision Maker, if the ALJ determines that the 
applicant does not pose a security threat, TSA will issue a Withdrawal 
of the Final Determination to the applicant, and to the applicant's 
employer where applicable.
    (g) Review by the TSA Final Decision Maker. (1) Either party may 
request that the TSA Final Decision Maker review the ALJ's decision by 
serving the request no later than 30 calendar days after the date of 
service of the decision of the ALJ.
    (i) The request must be in writing, served on the other party, and 
may only address whether the decision is supported by substantial 
evidence on the record.
    (ii) No later than 30 calendar days after receipt of the request, 
the other party may file a response.
    (2) The ALJ will provide the TSA Final Decision Maker with a 
certified transcript of the hearing and all unclassified documents and 
material submitted for the record. TSA will provide any classified 
materials previously submitted.
    (3) No later than 60 calendar days after receipt of the request, or 
if the other party files a response, 30 calendar days after receipt of 
the response, or such longer period as may be required, the TSA Final 
Decision Maker issues an unclassified decision and serves the decision 
on the parties. The TSA Final Decision Maker may issue a classified 
opinion to TSA, if applicable. The decision of the TSA Final Decision 
Maker is a final agency order.
    (i) In the case of review of a waiver denial, if the TSA Final 
Decision Maker upholds the denial of the applicant's request for waiver, 
TSA issues a Final Order Denying a Waiver to the applicant.
    (ii) In the case of review of a waiver denial, if the TSA Final 
Decision Maker reverses the denial of the applicant's request for 
waiver, TSA will grant the waiver; and
    (A) In the case of an HME, send a Determination of No Security 
Threat to the applicant and to the licensing State.
    (B) In the case of a TWIC, send a Determination of No Security 
Threat to the applicant and to the Coast Guard.
    (C) In the case of an air cargo worker, send a Determination of No 
Security Threat to the applicant and the operator.
    (iii) In the case of review of an appeal under 49 CFR 1515.9, if the 
TSA Final Decision Maker determines that the applicant poses a security 
threat, TSA will issue a Final Order of Threat Assessment to the 
applicant.
    (iv) In the case of review of an appeal under 49 CFR 1515.9, if the 
TSA Final Decision Maker determines that the applicant does not pose a 
security threat, TSA will issue a Withdrawal of the Final Determination 
to the applicant, and to the applicant's employer where applicable.
    (h) Judicial Review of a Final Order Denying a Waiver. A person may 
seek judicial review of a final order of the TSA

[[Page 297]]

Final Decision Maker as provided in 49 U.S.C. 46110.

[72 FR 3588, Jan. 25, 2007; 72 FR 5633, Feb. 7, 2007; 74 FR 47695, Sept. 
16, 2009]

[[Page 298]]



       SUBCHAPTER B_SECURITY RULES FOR ALL MODES OF TRANSPORTATION





PART 1520_PROTECTION OF SENSITIVE SECURITY INFORMATION--Table of Contents



Sec.
1520.1 Scope.
1520.3 Terms used in this part.
1520.5 Sensitive security information.
1520.7 Covered persons.
1520.9 Restrictions on the disclosure of SSI.
1520.11 Persons with a need to know.
1520.13 Marking SSI.
1520.15 SSI disclosed by TSA or the Coast Guard.
1520.17 Consequences of unauthorized disclosure of SSI.
1520.19 Destruction of SSI.

    Authority: 46 U.S.C. 70102-70106, 70117; 49 U.S.C. 114, 40113, 
44901-44907, 44913-44914, 44916-44918, 44935-44936, 44942, 46105.

    Source: 69 FR 28082, May 18, 2004, unless otherwise noted.



Sec.  1520.1  Scope.

    (a) Applicability. This part governs the maintenance, safeguarding, 
and disclosure of records and information that TSA has determined to be 
Sensitive Security Information, as defined in Sec.  1520.5. This part 
does not apply to the maintenance, safeguarding, or disclosure of 
classified national security information, as defined by Executive Order 
12968, or to other sensitive unclassified information that is not SSI, 
but that nonetheless may be exempt from public disclosure under the 
Freedom of Information Act. In addition, in the case of information that 
has been designated as critical infrastructure information under section 
214 of the Homeland Security Act, the receipt, maintenance, or 
disclosure of such information by a Federal agency or employee is 
governed by section 214 and any implementing regulations, not by this 
part.
    (b) Delegation. The authority of TSA and the Coast Guard under this 
part may be further delegated within TSA and the Coast Guard, 
respectively.



Sec.  1520.3  Terms used in this part.

    In addition to the terms in Sec.  1500.3 of this chapter, the 
following terms apply in this part:
    Administrator means the Under Secretary of Transportation for 
Security referred to in 49 U.S.C. 114(b), or his or her designee.
    Coast Guard means the United States Coast Guard.
    Covered person means any organization, entity, individual, or other 
person described in Sec.  1520.7. In the case of an individual, covered 
person includes any individual applying for employment in a position 
that would be a covered person, or in training for such a position, 
regardless of whether that individual is receiving a wage, salary, or 
other form of payment. Covered person includes a person applying for 
certification or other form of approval that, if granted, would make the 
person a covered person described in Sec.  1520.7.
    DHS means the Department of Homeland Security and any directorate, 
bureau, or other component within the Department of Homeland Security, 
including the United States Coast Guard.
    DOT means the Department of Transportation and any operating 
administration, entity, or office within the Department of 
Transportation, including the Saint Lawrence Seaway Development 
Corporation and the Bureau of Transportation Statistics.
    Federal Flight Deck Officer means a pilot participating in the 
Federal Flight Deck Officer Program under 49 U.S.C. 44921 and 
implementing regulations.
    Maritime facility means any facility as defined in 33 CFR part 101.
    Rail facility means ``rail facility'' as defined in 49 CFR 1580.3.
    Rail hazardous materials receiver means ``rail hazardous materials 
receiver'' as defined in 49 CFR 1580.3.
    Rail hazardous materials shipper means ``rail hazardous materials 
shipper'' as defined in 49 CFR 1580.3.
    Rail secure area means ``rail secure area'' as defined in 49 CFR 
1580.3.
    Rail transit facility means ``rail transit facility'' as defined in 
49 CFR 1580.3.
    Rail transit system or Rail Fixed Guideway System means ``rail 
transit system'' or ``Rail Fixed Guideway System'' as defined in 49 CFR 
1580.3.

[[Page 299]]

    Railroad means ``railroad'' as defined in 49 U.S.C. 20102(1).
    Railroad carrier means ``railroad carrier'' as defined in 49 U.S.C. 
20102(2).
    Record includes any means by which information is preserved, 
irrespective of format, including a book, paper, drawing, map, 
recording, tape, film, photograph, machine-readable material, and any 
information stored in an electronic format. The term record also 
includes any draft, proposed, or recommended change to any record.
    Security contingency plan means a plan detailing response procedures 
to address a transportation security incident, threat assessment, or 
specific threat against transportation, including details of 
preparation, response, mitigation, recovery, and reconstitution 
procedures, continuity of government, continuity of transportation 
operations, and crisis management.
    Security screening means evaluating a person or property to 
determine whether either poses a threat to security.
    SSI means sensitive security information, as described in Sec.  
1520.5.
    Threat image projection system means an evaluation tool that 
involves periodic presentation of fictional threat images to operators 
and is used in connection with x-ray or explosives detection systems 
equipment.
    TSA means the Transportation Security Administration.
    Vulnerability assessment means any review, audit, or other 
examination of the security of a transportation infrastructure asset; 
airport; maritime facility, port area, or vessel; aircraft; railroad; 
railroad carrier, rail facility; train; rail hazardous materials shipper 
or receiver facility; rail transit system; rail transit facility; 
commercial motor vehicle; or pipeline; or a transportation-related 
automated system or network to determine its vulnerability to unlawful 
interference, whether during the conception, planning, design, 
construction, operation, or decommissioning phase. A vulnerability 
assessment may include proposed, recommended, or directed actions or 
countermeasures to address security concerns.

[69 FR 28082, May 18, 2004, as amended at 70 FR 41599, July 19, 2005; 73 
FR 72172, Nov. 26, 2008; 74 FR 47695, Sept. 16, 2009]



Sec.  1520.5  Sensitive security information.

    (a) In general. In accordance with 49 U.S.C. 114(s), SSI is 
information obtained or developed in the conduct of security activities, 
including research and development, the disclosure of which TSA has 
determined would--
    (1) Constitute an unwarranted invasion of privacy (including, but 
not limited to, information contained in any personnel, medical, or 
similar file);
    (2) Reveal trade secrets or privileged or confidential information 
obtained from any person; or
    (3) Be detrimental to the security of transportation.
    (b) Information constituting SSI. Except as otherwise provided in 
writing by TSA in the interest of public safety or in furtherance of 
transportation security, the following information, and records 
containing such information, constitute SSI:
    (1) Security programs and contingency plans. Any security program or 
security contingency plan issued, established, required, received, or 
approved by DOT or DHS, including any comments, instructions, or 
implementing guidance, including--
    (i) Any aircraft operator, airport operator, fixed base operator, or 
air cargo security program, or security contingency plan under this 
chapter;
    (ii) Any vessel, maritime facility, or port area security plan 
required or directed under Federal law;
    (iii) Any national or area security plan prepared under 46 U.S.C. 
70103; and
    (iv) Any security incident response plan established under 46 U.S.C. 
70104.
    (2) Security Directives. Any Security Directive or order--
    (i) Issued by TSA under 49 CFR 1542.303, 1544.305, 1548.19, or other 
authority;
    (ii) Issued by the Coast Guard under the Maritime Transportation 
Security Act, 33 CFR part 6, or 33 U.S.C. 1221 et seq. related to 
maritime security; or
    (iii) Any comments, instructions, and implementing guidance 
pertaining thereto.
    (3) Information Circulars. Any notice issued by DHS or DOT regarding 
a threat to aviation or maritime transportation, including any--

[[Page 300]]

    (i) Information circular issued by TSA under 49 CFR 1542.303, 
1544.305, 1548.19, or other authority; and
    (ii) Navigation or Vessel Inspection Circular issued by the Coast 
Guard related to maritime security.
    (4) Performance specifications. Any performance specification and 
any description of a test object or test procedure, for--
    (i) Any device used by the Federal Government or any other person 
pursuant to any aviation or maritime transportation security 
requirements of Federal law for the detection of any person, and any 
weapon, explosive, incendiary, or destructive device, item, or 
substance; and
    (ii) Any communications equipment used by the Federal government or 
any other person in carrying out or complying with any aviation or 
maritime transportation security requirements of Federal law.
    (5) Vulnerability assessments. Any vulnerability assessment 
directed, created, held, funded, or approved by the DOT, DHS, or that 
will be provided to DOT or DHS in support of a Federal security program.
    (6) Security inspection or investigative information. (i) Details of 
any security inspection or investigation of an alleged violation of 
aviation, maritime, or rail transportation security requirements of 
Federal law that could reveal a security vulnerability, including the 
identity of the Federal special agent or other Federal employee who 
conducted the inspection or audit.
    (ii) In the case of inspections or investigations performed by TSA, 
this includes the following information as to events that occurred 
within 12 months of the date of release of the information: the name of 
the airport where a violation occurred, the airport identifier in the 
case number, a description of the violation, the regulation allegedly 
violated, and the identity of any aircraft operator in connection with 
specific locations or specific security procedures. Such information 
will be released after the relevant 12-month period, except that TSA 
will not release the specific gate or other location on an airport where 
an event occurred, regardless of the amount of time that has passed 
since its occurrence. During the period within 12 months of the date of 
release of the information, TSA may release summaries of an aircraft 
operator's, but not an airport operator's, total security violations in 
a specified time range without identifying specific violations or 
locations. Summaries may include total enforcement actions, total 
proposed civil penalty amounts, number of cases opened, number of cases 
referred to TSA or FAA counsel for legal enforcement action, and number 
of cases closed.
    (7) Threat information. Any information held by the Federal 
government concerning threats against transportation or transportation 
systems and sources and methods used to gather or develop threat 
information, including threats against cyber infrastructure.
    (8) Security measures. Specific details of aviation, maritime, or 
rail transportation security measures, both operational and technical, 
whether applied directly by the Federal government or another person, 
including--
    (i) Security measures or protocols recommended by the Federal 
government;
    (ii) Information concerning the deployments, numbers, and operations 
of Coast Guard personnel engaged in maritime security duties and Federal 
Air Marshals, to the extent it is not classified national security 
information; and
    (iii) Information concerning the deployments and operations of 
Federal Flight Deck Officers, and numbers of Federal Flight Deck 
Officers aggregated by aircraft operator.
    (iv) Any armed security officer procedures issued by TSA under 49 
CFR part 1562.
    (9) Security screening information. The following information 
regarding security screening under aviation or maritime transportation 
security requirements of Federal law:
    (i) Any procedures, including selection criteria and any comments, 
instructions, and implementing guidance pertaining thereto, for 
screening of persons, accessible property, checked baggage, U.S. mail, 
stores, and cargo, that is conducted by the Federal government or any 
other authorized person.
    (ii) Information and sources of information used by a passenger or 
property

[[Page 301]]

screening program or system, including an automated screening system.
    (iii) Detailed information about the locations at which particular 
screening methods or equipment are used, only if determined by TSA to be 
SSI.
    (iv) Any security screener test and scores of such tests.
    (v) Performance or testing data from security equipment or screening 
systems.
    (vi) Any electronic image shown on any screening equipment monitor, 
including threat images and descriptions of threat images for threat 
image projection systems.
    (10) Security training materials. Records created or obtained for 
the purpose of training persons employed by, contracted with, or acting 
for the Federal government or another person to carry out aviation, 
maritime, or rail transportation security measures required or 
recommended by DHS or DOT.
    (11) Identifying information of certain transportation security 
personnel. (i) Lists of the names or other identifying information that 
identify persons as--
    (A) Having unescorted access to a secure area of an airport, a rail 
secure area, or a secure or restricted area of a maritime facility, port 
area, or vessel;
    (B) Holding a position as a security screener employed by or under 
contract with the Federal government pursuant to aviation or maritime 
transportation security requirements of Federal law, where such lists 
are aggregated by airport;
    (C) Holding a position with the Coast Guard responsible for 
conducting vulnerability assessments, security boardings, or engaged in 
operations to enforce maritime security requirements or conduct force 
protection;
    (D) Holding a position as a Federal Air Marshal; or
    (ii) The name or other identifying information that identifies a 
person as a current, former, or applicant for Federal Flight Deck 
Officer.
    (12) Critical aviation, maritime, or rail infrastructure asset 
information. Any list identifying systems or assets, whether physical or 
virtual, so vital to the aviation, maritime, or rail transportation 
system (including rail hazardous materials shippers and rail hazardous 
materials receivers) that the incapacity or destruction of such assets 
would have a debilitating impact on transportation security, if the list 
is--
    (i) Prepared by DHS or DOT; or
    (ii) Prepared by a State or local government agency and submitted by 
the agency to DHS or DOT.
    (13) Systems security information. Any information involving the 
security of operational or administrative data systems operated by the 
Federal government that have been identified by the DOT or DHS as 
critical to aviation or maritime transportation safety or security, 
including automated information security procedures and systems, 
security inspections, and vulnerability information concerning those 
systems.
    (14) Confidential business information. (i) Solicited or unsolicited 
proposals received by DHS or DOT, and negotiations arising therefrom, to 
perform work pursuant to a grant, contract, cooperative agreement, or 
other transaction, but only to the extent that the subject matter of the 
proposal relates to aviation or maritime transportation security 
measures;
    (ii) Trade secret information, including information required or 
requested by regulation or Security Directive, obtained by DHS or DOT in 
carrying out aviation or maritime transportation security 
responsibilities; and
    (iii) Commercial or financial information, including information 
required or requested by regulation or Security Directive, obtained by 
DHS or DOT in carrying out aviation or maritime transportation security 
responsibilities, but only if the source of the information does not 
customarily disclose it to the public.
    (15) Research and development. Information obtained or developed in 
the conduct of research related to aviation, maritime, or rail 
transportation security activities, where such research is approved, 
accepted, funded, recommended, or directed by DHS or DOT, including 
research results.
    (16) Other information. Any information not otherwise described in 
this section that TSA determines is SSI under 49 U.S.C. 114(s) or that 
the Secretary of DOT determines is SSI under

[[Page 302]]

49 U.S.C. 40119. Upon the request of another Federal agency, TSA or the 
Secretary of DOT may designate as SSI information not otherwise 
described in this section.
    (c) Loss of SSI designation. TSA or the Coast Guard may determine in 
writing that information or records described in paragraph (b) of this 
section do not constitute SSI because they no longer meet the criteria 
set forth in paragraph (a) of this section.

[69 FR 28082, May 18, 2004, as amended at 70 FR 41599, July 19, 2005; 71 
FR 30507, May 26, 2006; 73 FR 72172, Nov. 26, 2008; 74 FR 47695, Sept. 
16, 2009]



Sec.  1520.7  Covered persons.

    Persons subject to the requirements of part 1520 are:
    (a) Each airport operator, aircraft operator, and fixed base 
operator subject to the requirements of subchapter C of this chapter, 
and each armed security officer under subpart B of part 1562.
    (b) Each indirect air carrier (IAC), as described in 49 CFR part 
1548; each validation firm and its personnel, as described in 49 CFR 
1522; and each certified cargo screening facility and its personnel, as 
described in 49 CFR 1549.
    (c) Each owner, charterer, or operator of a vessel, including 
foreign vessel owners, charterers, and operators, required to have a 
security plan under Federal or International law.
    (d) Each owner or operator of a maritime facility required to have a 
security plan under the Maritime Transportation Security Act, (Pub.L. 
107-295), 46 U.S.C. 70101 et seq., 33 CFR part 6, or 33 U.S.C. 1221 et 
seq.
    (e) Each person performing the function of a computer reservation 
system or global distribution system for airline passenger information.
    (f) Each person participating in a national or area security 
committee established under 46 U.S.C. 70112, or a port security 
committee.
    (g) Each industry trade association that represents covered persons 
and has entered into a non-disclosure agreement with the DHS or DOT.
    (h) DHS and DOT.
    (i) Each person conducting research and development activities that 
relate to aviation or maritime transportation security and are approved, 
accepted, funded, recommended, or directed by DHS or DOT.
    (j) Each person who has access to SSI, as specified in Sec.  
1520.11.
    (k) Each person employed by, contracted to, or acting for a covered 
person, including a grantee of DHS or DOT, and including a person 
formerly in such position.
    (l) Each person for which a vulnerability assessment has been 
directed, created, held, funded, or approved by the DOT, DHS, or that 
has prepared a vulnerability assessment that will be provided to DOT or 
DHS in support of a Federal security program.
    (m) Each person receiving SSI under Sec.  1520.15(d) or (e).
    (n) Each railroad carrier, rail hazardous materials shipper, rail 
hazardous materials receiver, and rail transit system subject to the 
requirements of part 1580 of this chapter.

[69 FR 28082, May 18, 2004, as amended at 70 FR 41600, July 19, 2005; 73 
FR 72173, Nov. 26, 2008; 74 FR 47695, Sept. 16, 2009]



Sec.  1520.9  Restrictions on the disclosure of SSI.

    (a) Duty to protect information. A covered person must--
    (1) Take reasonable steps to safeguard SSI in that person's 
possession or control from unauthorized disclosure. When a person is not 
in physical possession of SSI, the person must store it a secure 
container, such as a locked desk or file cabinet or in a locked room.
    (2) Disclose, or otherwise provide access to, SSI only to covered 
persons who have a need to know, unless otherwise authorized in writing 
by TSA, the Coast Guard, or the Secretary of DOT.
    (3) Refer requests by other persons for SSI to TSA or the applicable 
component or agency within DOT or DHS.
    (4) Mark SSI as specified in Sec.  1520.13.
    (5) Dispose of SSI as specified in Sec.  1520.19.
    (b) Unmarked SSI. If a covered person receives a record containing 
SSI that is not marked as specified in Sec.  1520.13, the covered person 
must--
    (1) Mark the record as specified in Sec.  1520.13; and
    (2) Inform the sender of the record that the record must be marked 
as specified in Sec.  1520.13.

[[Page 303]]

    (c) Duty to report unauthorized disclosure. When a covered person 
becomes aware that SSI has been released to unauthorized persons, the 
covered person must promptly inform TSA or the applicable DOT or DHS 
component or agency.
    (d) Additional Requirements for Critical Infrastructure Information. 
In the case of information that is both SSI and has been designated as 
critical infrastructure information under section 214 of the Homeland 
Security Act, any covered person who is a Federal employee in possession 
of such information must comply with the disclosure restrictions and 
other requirements applicable to such information under section 214 and 
any implementing regulations.



Sec.  1520.11  Persons with a need to know.

    (a) In general. A person has a need to know SSI in each of the 
following circumstances:
    (1) When the person requires access to specific SSI to carry out 
transportation security activities approved, accepted, funded, 
recommended, or directed by DHS or DOT.
    (2) When the person is in training to carry out transportation 
security activities approved, accepted, funded, recommended, or directed 
by DHS or DOT.
    (3) When the information is necessary for the person to supervise or 
otherwise manage individuals carrying out transportation security 
activities approved, accepted, funded, recommended, or directed by the 
DHS or DOT.
    (4) When the person needs the information to provide technical or 
legal advice to a covered person regarding transportation security 
requirements of Federal law.
    (5) When the person needs the information to represent a covered 
person in connection with any judicial or administrative proceeding 
regarding those requirements.
    (b) Federal, State, local, or tribal government employees, 
contractors, and grantees. (1) A Federal, State, local, or tribal 
government employee has a need to know SSI if access to the information 
is necessary for performance of the employee's official duties, on 
behalf or in defense of the interests of the Federal, State, local, or 
tribal government.
    (2) A person acting in the performance of a contract with or grant 
from a Federal, State, local, or tribal government agency has a need to 
know SSI if access to the information is necessary to performance of the 
contract or grant.
    (c) Background check. TSA or Coast Guard may make an individual's 
access to the SSI contingent upon satisfactory completion of a security 
background check or other procedures and requirements for safeguarding 
SSI that are satisfactory to TSA or the Coast Guard.
    (d) Need to know further limited by the DHS or DOT. For some 
specific SSI, DHS or DOT may make a finding that only specific persons 
or classes of persons have a need to know.

[69 FR 28082, May 18, 2004, as amended at 70 FR 1382, Jan. 7, 2005; 73 
FR 72173, Nov. 26, 2008]



Sec.  1520.13  Marking SSI.

    (a) Marking of paper records. In the case of paper records 
containing SSI, a covered person must mark the record by placing the 
protective marking conspicuously on the top, and the distribution 
limitation statement on the bottom, of--
    (1) The outside of any front and back cover, including a binder 
cover or folder, if the document has a front and back cover;
    (2) Any title page; and
    (3) Each page of the document.
    (b) Protective marking. The protective marking is: SENSITIVE 
SECURITY INFORMATION.
    (c) Distribution limitation statement. The distribution limitation 
statement is:

WARNING: This record contains Sensitive Security Information that is 
controlled under 49 CFR parts 15 and 1520. No part of this record may be 
disclosed to persons without a ``need to know'', as defined in 49 CFR 
parts 15 and 1520, except with the written permission of the 
Administrator of the Transportation Security Administration or the 
Secretary of Transportation. Unauthorized release may result in civil 
penalty or other action. For U.S. government agencies, public disclosure 
is governed by 5 U.S.C. 552 and 49 CFR parts 15 and 1520.


[[Page 304]]


    (d) Other types of records. In the case of non-paper records that 
contain SSI, including motion picture films, videotape recordings, audio 
recording, and electronic and magnetic records, a covered person must 
clearly and conspicuously mark the records with the protective marking 
and the distribution limitation statement such that the viewer or 
listener is reasonably likely to see or hear them when obtaining access 
to the contents of the record.



Sec.  1520.15  SSI disclosed by TSA or the Coast Guard.

    (a) In general. Except as otherwise provided in this section, and 
notwithstanding the Freedom of Information Act (5 U.S.C. 552), the 
Privacy Act (5 U.S.C. 552a), and other laws, records containing SSI are 
not available for public inspection or copying, nor does TSA or the 
Coast Guard release such records to persons without a need to know.
    (b) Disclosure under the Freedom of Information Act and the Privacy 
Act. If a record contains both SSI and information that is not SSI, TSA 
or the Coast Guard, on a proper Freedom of Information Act or Privacy 
Act request, may disclose the record with the SSI redacted, provided the 
record is not otherwise exempt from disclosure under the Freedom of 
Information Act or Privacy Act.
    (c) Disclosures to committees of Congress and the General Accounting 
Office. Nothing in this part precludes TSA or the Coast Guard from 
disclosing SSI to a committee of Congress authorized to have the 
information or to the Comptroller General, or to any authorized 
representative of the Comptroller General.
    (d) Disclosure in enforcement proceedings--(1) In general. TSA or 
the Coast Guard may provide SSI to a person in the context of an 
administrative enforcement proceeding when, in the sole discretion of 
TSA or the Coast Guard, as appropriate, access to the SSI is necessary 
for the person to prepare a response to allegations contained in a legal 
enforcement action document issued by TSA or the Coast Guard.
    (2) Security background check. Prior to providing SSI to a person 
under paragraph (d)(1) of this section, TSA or the Coast Guard may 
require the individual or, in the case of an entity, the individuals 
representing the entity, and their counsel, to undergo and satisfy, in 
the judgment of TSA or the Coast Guard, a security background check.
    (e) Other conditional disclosure. TSA may authorize a conditional 
disclosure of specific records or information that constitute SSI upon 
the written determination by TSA that disclosure of such records or 
information, subject to such limitations and restrictions as TSA may 
prescribe, would not be detrimental to transportation security.
    (f) Obligation to protect information. When an individual receives 
SSI pursuant to paragraph (d) or (e) of this section that individual 
becomes a covered person under Sec.  1520.7 and is subject to the 
obligations of a covered person under this part.
    (g) No release under FOIA. When TSA discloses SSI pursuant to 
paragraphs (b) through (e) of this section, TSA makes the disclosure for 
the sole purpose described in that paragraph. Such disclosure is not a 
public release of information under the Freedom of Information Act.
    (h) Disclosure of Critical Infrastructure Information. Disclosure of 
information that is both SSI and has been designated as critical 
infrastructure information under section 214 of the Homeland Security 
Act is governed solely by the requirements of section 214 and any 
implementing regulations.



Sec.  1520.17  Consequences of unauthorized disclosure of SSI.

    Violation of this part is grounds for a civil penalty and other 
enforcement or corrective action by DHS, and appropriate personnel 
actions for Federal employees. Corrective action may include issuance of 
an order requiring retrieval of SSI to remedy unauthorized disclosure or 
an order to cease future unauthorized disclosure.



Sec.  1520.19  Destruction of SSI.

    (a) DHS. Subject to the requirements of the Federal Records Act (5 
U.S.C. 105), including the duty to preserve records containing 
documentation of a Federal agency's policies, decisions,

[[Page 305]]

and essential transactions, DHS destroys SSI when no longer needed to 
carry out the agency's function.
    (b) Other covered persons--(1) In general. A covered person must 
destroy SSI completely to preclude recognition or reconstruction of the 
information when the covered person no longer needs the SSI to carry out 
transportation security measures.
    (2) Exception. Paragraph (b)(1) of this section does not require a 
State or local government agency to destroy information that the agency 
is required to preserve under State or local law.



PART 1522_TSA-APPROVED VALIDATION FIRMS AND VALIDATORS--Table of Contents



                            Subpart A_General

Sec.
1522.1 Scope and terms used in this part.
1522.3 Fraud and intentional falsification of records.
1522.5 TSA inspection authority.

Subpart B_TSA-Approved Validation Firms and Validators for the Certified 
                         Cargo Screening Program

1522.101 Applicability.
1522.103 Requirements for validation firms.
1522.105 Adoption and implementation of the security program.
1522.107 Application.
1522.109 TSA review and approval.
1522.111 Reconsideration of disapproval of an application.
1522.113 Withdrawal of approval.
1522.115 Renewal of TSA approval.
1522.117 Qualifications of validators.
1522.119 Training.
1522.121 Security threat assessments for personnel of TSA-approved 
          validation firms.
1522.123 Conduct of assessments.
1522.125 Protection of information.
1522.127 Assessment report.
1522.129 Recordkeeping requirements.

    Authority: 49 U.S.C. 114, 5103, 40113, 44901-44907, 44913-44914, 
44916-44918, 44932, 44935-44936, 44942, 46105.

    Source: 74 FR 47695, Sept. 16, 2009, unless otherwise noted.



                            Subpart A_General



Sec.  1522.1  Scope and terms used in this part.

    (a) This part governs the use of TSA-approved validation firms and 
individual validators to assess whether certain persons regulated under 
this chapter are in compliance with this chapter.
    (b) In addition to the terms in Sec. Sec.  1500.3 and 1540.5 of this 
chapter, the following terms apply in this part:
    Applicant means a firm that seeks to become a TSA-approved 
validation firm under this part.
    Assessment means the physical inspections, records reviews, 
personnel interviews, and other procedures conducted by a validator to 
assess whether a person is in compliance with relevant requirements of a 
security program.
    Conflict of interest means a situation in which the validation firm, 
the validator, or an individual assisting in the assessment, or the 
spouse or immediate family member of such person, has a relationship 
with, or an interest in, the person under assessment that may adversely 
affect the impartiality of the assessment. Examples of conflict of 
interest situations include, but are not limited to, any of the 
following:
    (1) The validation firm is a parent company or subsidiary of the 
person under assessment, has a financial interest in the person under 
assessment, or has common management or organizational governance (for 
example, interlocking boards of directors) with the person under 
assessment.
    (2) The validation firm, the validator, or an individual who will 
assist in conducting the assessment, or an immediate family member of 
such a validator or individual, is a creditor or debtor of the person 
under assessment.
    (3) The validator, or an individual who will assist in conducting 
the assessment, or the spouse or immediate family member of such a 
person, is, or within the past two years has been, an employee, officer, 
or contractor of the person under assessment whose duties did not 
involve the operations being assessed.
    (4) The validator, or an individual who will assist in conducting 
the assessment, or the spouse or immediate

[[Page 306]]

family member of such a person, is, or at any time has been, an 
individual, officer, or contractor of the person under assessment whose 
duties or responsibilities did involve the operations being assessed.
    (5) The validator, or an individual who will assist in conducting 
the assessment, or the spouse or immediate family member of such a 
person, has a financial interest in the person under validation.
    Firm means a business enterprise or other non-governmental 
organization, including a sole proprietorship, partnership, limited 
liability partnership, limited liability corporation, and a corporation.
    National of the United States means a citizen of the United States, 
or a person who, though not a citizen, owes permanent allegiance to the 
United States, as defined in 8 U.S.C. 1101(a)(22), and includes American 
Samoa and Swains Island.
    TSA-approved validation firm or validation firm means a firm that 
has been approved under this part to conduct an assessment under this 
chapter.
    Validator means an individual assigned by the validation firm to be 
responsible for conducting a given assessment under this part.



Sec.  1522.3  Fraud and intentional falsification of records.

    No person may make, or cause to be made, any of the following:
    (a) Any fraudulent or intentionally false statement in any 
application under this part.
    (b) Any fraudulent or intentionally false entry in any record or 
report that is kept, made, or used to show compliance with this 
subchapter, or used to exercise any privilege under this part.
    (c) Any reproduction or alteration, for fraudulent purpose, of any 
report, record, security program, access medium, or identification 
medium issued or submitted under this part.



Sec.  1522.5  TSA inspection authority.

    (a) Each validation firm and each validator must allow TSA, during 
normal business hours, in a reasonable manner, without advance notice, 
to enter the facility and make any inspections or tests, including 
copying records, to--
    (1) Determine compliance of a validation firm or validator with this 
chapter and 49 U.S.C. 114 and Subtitle VII, as amended; or
    (2) Carry out TSA's statutory or regulatory authorities, including 
its authority to--
    (i) Assess threats to transportation;
    (ii) Enforce security-related regulations, directives, and 
requirements:
    (iii) Inspect, maintain, and test the security of facilities, 
equipment, and systems;
    (iv) Ensure the adequacy of security measures for the transportation 
of passengers and cargo;
    (v) Oversee the implementation, and ensure the adequacy, of security 
measures at airports and other transportation facilities;
    (vi) Review security plans; and
    (vii) Carry out such other duties, and exercise such other powers, 
relating to transportation security as the Assistant Secretary of 
Homeland Security for the TSA considers appropriate, to the extent 
authorized by law.
    (b) At the request of TSA, each validation firm and validator must 
provide evidence of compliance with this chapter, including copying 
records.
    (c) TSA and DHS officials working with TSA may conduct inspections 
under this section without access media or identification media issued 
or approved by a validation firm or other person, except that the TSA 
and DHS officials will have identification media issued by TSA or DHS.



Subpart B_TSA-Approved Validation Firms and Validators for the Certified 
                         Cargo Screening Program



Sec.  1522.101  Applicability.

    This subpart governs the use of TSA-approved validation firms and 
validators to assess whether certified cargo screening facilities 
(CCSFs), or facilities seeking to be approved as such, comply with the 
requirements of 49 CFR part 1549.

[[Page 307]]



Sec.  1522.103  Requirements for validation firms.

    In addition to the other requirements of this part, a validation 
firm must meet the following requirements to be approved to assess 
certified cargo screening facilities:
    (a) Resources. The validation firm must have sufficient facilities, 
resources, and personnel to conduct the assessments.
    (b) Security Coordinator. The validation firm must designate and use 
a Security Coordinator and at least one alternate Security Coordinator.
    (1) The Security Coordinator and alternates must be senior employees 
or officers of the firm, and must be readily available during normal 
business hours.
    (2) The Security Coordinator and designated alternates must serve as 
the validation firm's primary contact for security-related activities 
and communications with TSA.
    (3) The Security Coordinator must immediately initiate corrective 
action for any instance of non-compliance by the validation firm with 
any applicable TSA security requirement.
    (c) Security Program. The validation firm must obtain TSA approval 
of a security program and must implement the security program.
    (d) Personnel. The validation firm must ensure that its personnel 
carry out the requirements of this chapter and the validation firm's 
security program.
    (e) Change in information. (1) The validation firm must inform TSA, 
in a form and manner prescribed by TSA, of any change in the information 
required to be submitted by the validation firm to TSA under this part 
within seven days of the change.
    (2) Changes included within the requirement of this paragraph 
include, but are not limited to, changes in the validation firm's 
address, phone number, or other contact information, the identity of the 
Security Coordinator or alternate, significant changes in ownership of 
the firm.



Sec.  1522.105  Adoption and implementation of the security program.

    (a) Security program required. No person may operate as a validation 
firm unless that person holds and carries out an approved security 
program under this part.
    (b) Content. The validation firm standard security program together 
with approved alternate procedures and amendments that TSA has issued to 
that particular firm constitutes that firm's security program. Each 
security program under this part must--
    (1) Provide for the security of aircraft, as well as that of persons 
and property traveling in air transportation, against acts of criminal 
violence and air piracy, and against the introduction into aircraft of 
any unauthorized explosive, incendiary, and other destructive substance 
or item;
    (2) Describe the processes and procedures to be used to maintain 
current qualifications, credentials, or accreditations, training, and 
security threat assessments for relevant personnel;
    (3) Describe the facilities, support personnel, and other resources 
to be used in conducting assessments; and
    (4) Require that the validation firm designate and use a Security 
Coordinator and at least one alternate Security Coordinator.
    (c) Amendment requested by a validation firm or applicant. A 
validation firm or applicant may file a request for an amendment to its 
security program with the TSA designated official at least 45 calendar 
days before the date it proposes for the amendment to become effective, 
unless the designated official allows a shorter period. Any validation 
firm may submit to TSA a group proposal for an amendment that is on 
behalf of it and other validation firms that co-sign the proposal.
    (1) Within 30 calendar days after receiving a proposed amendment, 
the designated official, in writing, must either approve or deny the 
request to amend.
    (2) An amendment to a validation firm's security program may be 
approved if the designated official determines that safety and the 
public interest will allow it, and if the proposed amendment provides 
the level of security required under this part.
    (3) Within 30 calendar days after receiving a denial of the proposed 
amendment, the validation firm may petition

[[Page 308]]

TSA to reconsider the denial. A Petition for Reconsideration must be 
filed with the designated official.
    (4) Upon receipt of a Petition for Reconsideration, the designated 
official must either approve the request to amend the security program 
or transmit the petition, along with any pertinent information, to TSA 
for reconsideration. TSA will make a determination on the petition 
within 30 calendar days of receipt by either directing the designated 
official to approve the amendment or by affirming the denial.
    (d) Amendment by TSA. TSA may amend a security program in the 
interest of safety and the public interest, as follows:
    (1) TSA must notify the validation firm, in writing, of the proposed 
amendment, fixing a period of not less than 30 calendar days within 
which the validation firm may submit written information, views, and 
arguments on the amendment.
    (2) After considering all relevant material, the designated official 
must notify the validation firm of any amendment adopted or rescind the 
notice of amendment. If the amendment is adopted, it becomes effective 
not less than 30 calendar days after the validation firm receives the 
notice of amendment, unless the validation firm disagrees with the 
proposed amendment and petitions the TSA to reconsider, no later than 15 
calendar days before the effective date of the amendment. The validation 
firm must send the petition for reconsideration to the designated 
official. A timely Petition for Reconsideration stays the effective date 
of the amendment.
    (3) Upon receipt of a Petition for Reconsideration, the designated 
official must either amend or withdraw the notice of amendment, or 
transmit the Petition, together with any pertinent information, to TSA 
for reconsideration. TSA must make a determination on the Petition 
within 30 calendar days of receipt, either by directing the designated 
official to withdraw or amend the notice of amendment, or by affirming 
the notice of amendment.
    (e) Emergency Amendments. (1) If TSA finds that there is an 
emergency requiring immediate action that makes compliance with the 
procedural requirements in this section contrary to the public interest, 
the designated official may issue an emergency amendment, without the 
prior notice and comment procedures described in paragraph (d) of this 
section.
    (2) The emergency amendment is effective without stay on the date 
the validation firm receives notification. TSA will incorporate in the 
notification a brief statement of the reasons and findings for the 
emergency amendment to be adopted.
    (3) The validation firm may file a Petition for Reconsideration with 
TSA no later than 15 calendar days after TSA issues the emergency 
amendment. The certified cargo screening facility must send the Petition 
for Reconsideration to the designated official; however, the filing does 
not stay the effective date of the emergency amendment.
    (f) Availability. Each validation firm having a security program 
must do the following:
    (1) Maintain an original of the security program at its corporate 
office.
    (2) Have accessible a complete copy, or the pertinent portions of 
its security program, or appropriate implementing instructions, at each 
office where it conducts validation services. An electronic version is 
adequate.
    (3) Make a copy of the security program available for inspection 
upon the request of TSA.
    (4) Restrict the distribution, disclosure, and availability of 
information contained in its security program to persons with a need to 
know, as described in part 1520 of this chapter.
    (5) Refer requests for such information by other persons to TSA.



Sec.  1522.107  Application.

    (a) Initial application and approval. Unless otherwise authorized by 
TSA, each applicant must apply for a security program and for approval 
to operate as a validation firm, in a form and a manner prescribed by 
TSA, not less than 90 calendar days before the applicant intends to 
begin operations. The application must be in writing and include the 
following:
    (1) The firm's legal name; other names, including doing business as

[[Page 309]]

names; state of incorporation or licensing, if applicable; and tax 
identification number.
    (2) The names of the senior officers or employees of the applicant 
who will serve as the Security Coordinator and alternates.
    (3) A signed statement from each person listed in paragraph (a)(2) 
of this section stating whether he or she has been a senior manager or 
representative of any operator, whether or not a validation firm, that 
had its security program withdrawn by TSA.
    (4) Copies of Government-issued identification of persons listed in 
paragraph (a)(2) of this section.
    (5) The street address and e-mail address of the applicant.
    (6) A statement acknowledging the requirement that all personnel of 
the applicant who are subject to training under the requirements of this 
part must successfully complete such training before performing 
security-related duties.
    (7) Other information requested by TSA concerning security threat 
assessments.
    (8) A statement acknowledging that all personnel of the applicant 
who must successfully complete a security threat assessment under the 
requirements of this part must do so before the applicant authorizes the 
personnel to perform duties under this part.
    (b) Standard security program. After the Security Coordinator 
successfully completes a security threat assessment, TSA will provide to 
the applicant the validation firm standard security program, any 
security directives, and amendments to the security program and other 
alternative procedures that apply to validation firms. The applicant may 
either notify TSA that it accepts the standard security program or 
submit to TSA a proposed modified security program to the designated 
official for approval. The validation firm must also submit a supplement 
to the security program that specifies processes and procedures that the 
firm will use to maintain the qualification of its validators and its 
personnel assisting validators with assessments to the designated TSA 
official for approval. TSA will approve the security program under Sec.  
1522.109, or issue a written notice to modify under Sec.  1522.109(b).



Sec.  1522.109  TSA review and approval.

    (a) Review. TSA will review an application received under Sec.  
1522.107 to determine whether--
    (1) The applicant has met the requirements of this part, the 
proposed security program, and any applicable Emergency Amendment and 
Security Directive;
    (2) The applicant is able and willing to carry out the requirements 
of this part, its security program, and an applicable Emergency 
Amendment and Security Directive;
    (3) The approval of such applicant's security program is not 
contrary to the interests of security and the public interest;
    (4) The applicant has not held a security program that was withdrawn 
within the previous year, unless otherwise authorized by TSA; and
    (5) TSA determines that the applicant is qualified to be a 
validation firm.
    (b) Notice.--(1) Approval. If an application is approved, TSA will 
send the applicant a written notice of approval of its security program, 
and approval to operate as a validation firm.
    (2) Commencement of operations. A validation firm may commence 
operations when it has received approval under this section, and 
successfully completed training and security threat assessments for all 
relevant personnel.
    (3) Disapproval. If an application is disapproved, TSA will serve a 
written notice of disapproval to the applicant. The notice of 
disapproval will include the basis of the disapproval of the 
application.
    (c) Duration of security program. A security program approved under 
this section will remain effective until the end of the calendar month 
12 months after the month it was approved or until the program has been 
surrendered or withdrawn, whichever is earlier.



Sec.  1522.111  Reconsideration of disapproval of an application.

    (a) Petition for reconsideration. If TSA disapproves an application 
under section 1522.107, the applicant may seek

[[Page 310]]

reconsideration of the decision by submitting a written petition for 
reconsideration to the Assistant Secretary or his or her designee within 
30 days of receiving the notice of disapproval. The written petition for 
reconsideration must include a statement and any supporting 
documentation explaining why the applicant believes the reason for 
disapproval is incorrect.
    (b) Review of petition. Upon review of the petition for 
reconsideration, the Assistant Secretary or designee makes a 
determination on the petition by either affirming the disapproval of the 
application or approving the application. The Assistant Secretary or 
designee may request additional information from the applicant prior to 
rendering a decision. This disposition is a final agency action for 
purposes of 49 U.S.C. 46110.



Sec.  1522.113  Withdrawal of approval.

    (a) Basis for withdrawal of approval. TSA may withdraw approval of a 
TSA-approved validation firm if the validation firm ceases to meet the 
standards for approval, fails to fulfill its responsibilities under this 
subpart, or if TSA determines that continued operation is contrary to 
safety and the public interest.
    (b) Notice of withdrawal of approval. (1) Except as provided in 
paragraph (c) of this section, TSA will provide a written notice of 
proposed withdrawal of approval to the validation firm.
    (2) The notice of proposed withdrawal of approval will include the 
basis for the withdrawal of approval.
    (3) Unless the validation firm files a written petition for 
reconsideration under paragraph (d) of this section, the notice of 
proposed withdrawal of approval will become a final notice of withdrawal 
of approval 31 days after the validation firm's receipt of the notice of 
proposed withdrawal of approval.
    (c) Emergency notice of withdrawal of approval. (1) If TSA finds 
that there is an emergency requiring immediate action with respect to a 
TSA-approved validation firm's ability to perform assessments, TSA may 
withdraw approval of that validation firm without prior notice.
    (2) TSA will incorporate in the emergency notice of withdrawal of 
approval a brief statement of the reasons and findings for the 
withdrawal of approval.
    (3) The emergency notice of withdrawal of approval is effective upon 
the TSA-approved validation firm's receipt of the notice. The validation 
firm may file a written petition for reconsideration under paragraph (d) 
of this section; however, this petition does not stay the effective date 
of the emergency notice of withdrawal of approval.
    (d) Petition for reconsideration. A validation firm may seek 
reconsideration of the withdrawal of approval by submitting a written 
petition for reconsideration to the Assistant Secretary or designee 
within 30 days of receiving the notice of withdrawal of approval. The 
filing of a petition for reconsideration does not stay the effective 
date of the withdrawal pending the reconsideration.
    (e) Review of petition. Upon review of the written petition for 
reconsideration, the Assistant Secretary or designee makes a 
determination on the petition by either affirming or withdrawing the 
notice of withdrawal of approval. The Assistant Secretary or designee 
may request additional information from the validation firm prior to 
rendering a decision. This disposition is a final decision for purposes 
of review under 49 U.S.C. 46110.



Sec.  1522.115  Renewal of TSA approval.

    (a) Application. Every 12 months, computed from the date of initial 
approval under Sec.  1522.107, or more frequently as required by TSA, 
each validation firm must apply, in a form and manner prescribed by TSA, 
for renewal of approval of its security program, and of approval to 
operate as a validation firm. If the validation firm submits the 
information in the month before or after it is due, the validation firm 
is considered to have submitted the information in the month it is due. 
If the validation firm timely submits its application for review of 
approval under this section, the validation firm may continue to conduct 
assessments under this subpart unless and until TSA denies the 
application.

[[Page 311]]

    (b) Content. In addition to any other information required by TSA, 
the validation firm must submit the following information to TSA when 
applying for renewal:
    (1) If required, evidence that the validators and other individuals 
of the validation firm with responsibilities for participating in 
assessments have successfully completed the initial training under Sec.  
1522.119(a) and any recurrent training described in Sec.  1522.119(b).
    (2) Evidence that the individual validators with responsibilities 
for conducting assessments continue to be certified or accredited by an 
organization that TSA recognizes as qualified to certify or accredit a 
validator.
    (3) A statement signed by a senior officer or employee of the 
validation firm attesting that the firm has reviewed and ensures the 
continuing accuracy of the contents of its initial application for a 
security program, subsequent renewal applications, or other submissions 
to TSA confirming a change of information and noting the date such 
applications and submissions were made to TSA, including the following 
certification:

    [Name of validation firm] (hereinafter ``the validation firm'') has 
adopted and is currently carrying out a security program in accordance 
with the Transportation Security Regulations as originally approved on 
[Insert date of TSA initial approval]. In accordance with TSA 
regulations, the validation firm has notified TSA of any new or changed 
information required for the validation firm's initial security program. 
If new or changed information is being submitted to TSA as part of this 
application for reapproval, that information is stated in this filing.
    The validation firm understands that intentional falsification of 
certification may be subject to both civil and criminal penalties under 
49 CFR part 1540 and 18 U.S.C. 1001. Failure to notify TSA of any new or 
changed information required for initial approval of the validation 
firm's security program in a timely fashion and in a form acceptable to 
TSA may result in withdrawal by TSA of approval of the validation firm's 
security program.

    (c) Renewal. TSA will renew approval of the security program and the 
validation firm's authority to conduct assessments if TSA determines 
that--
    (1) The validation firm has met the requirements of this chapter, 
its security program, and any Security Directive; and
    (2) The renewal of approval of the validation firm's security 
program, and of the approval to operate as a validation firm, is not 
contrary to the interests of security or the public interest.
    (d) Effective. The renewal of approval issued pursuant to this 
section will remain effective until the end of the calendar month 12 
months after the month it was approved or until the program has been 
surrendered or withdrawn, whichever is earlier.
    (e) Withdrawal. If a validation firm fails to comply with the 
requirements of this section, TSA may withdraw approval of the 
validation firm under Sec.  1522.113.



Sec.  1522.117  Qualifications of validators.

    (a) Each assessment conducted under this subpart must be conducted 
by a validator who meets the following requirements:
    (1) He or she must be a citizen or national of the United States or 
be an alien lawfully admitted for permanent residence.
    (2) He or she must meet the requirements of paragraph (a)(2)(i) or 
(ii) of this section.
    (i) He or she must hold a certification or accreditation from an 
organization that TSA recognizes as qualified to certify or accredit a 
validator for assessments and must have at least five years of 
experience in inspection or validating compliance with State or Federal 
regulations in the security industry, the aviation industry, or 
government programs. The five years of experience must have been 
obtained within 10 years of the date of the application.
    (ii) He or she must have at least five years experience as an 
inspector for a Federal or State government agency performing 
inspections similar to the inspections called for in this subpart and 
part 1549. The five years of experience must have been obtained within 
10 years of the date of the application.
    (3) The validator must have three professional references that 
address his or her abilities in inspection, validation, and written 
communications.
    (4) The validator must have sufficient knowledge of the rules, 
regulations,

[[Page 312]]

policies, security programs, directives, and orders, pertaining to the 
certified cargo screening program (CCSP).
    (5) The validator must have the ability to apply the concepts, 
principles, and methods of compliance with the requirements of the 
certified cargo screening program to include assessment, inspection, 
investigation, and reporting of compliance with the certified cargo 
screening program.
    (b) Each validator and each individual who assists in conducting 
assessments must successfully undergo a security threat assessment as 
required under Sec.  1522.121.



Sec.  1522.119  Training.

    (a) Initial training. The validation firm must ensure that its 
validators and individuals who will assist in conducting assessments 
have completed the initial training prescribed by TSA before conducting 
any assessment under this subpart.
    (b) Recurrent training. The validation firm must ensure that each 
validator and each individual assisting in conducting assessments under 
this subpart completes the recurrent training prescribed by TSA not 
later than 12 months after the validator's or individual's most recent 
TSA-prescribed training. If the validator or individual completes the 
recurrent training in the month before or the month after it is due, he 
or she is considered to have taken it in the month it is due.
    (c) Content. The training required by this section will include 
coverage of the applicable provisions of this chapter, including this 
part, part 1520, and Sec.  1540.105.



Sec.  1522.121  Security threat assessments for personnel of TSA-approved validation firms.

    Each of the following must successfully complete a security threat 
assessment or comparable security threat assessment described in part 
1540, subpart C of this chapter:
    (a) Each individual who supervises validators or individuals who 
will assist validators.
    (b) The validation firm's validator authorized to perform assessment 
services under this subpart.
    (c) The validation firm's Security Coordinator and alternates.
    (d) Each individual who will assist the validator in conducting 
assessments.



Sec.  1522.123  Conduct of assessments.

    (a) Standards for assessment. Each validator must assess, in a form 
and manner prescribed by TSA, whether the person seeking to operate or 
operating as a certified cargo screening facility is in compliance with 
49 CFR part 1549. The validator may be assisted by other individuals; 
however, the validator is directly responsible for the assessment and 
must sign the assessment report.
    (b) Conflict of interest. A validator may not conduct an assessment 
for which there exists a conflict of interest as defined in Sec.  
1552.1.
    (c) Immediate notification to TSA. If during the course of an 
assessment, the validator believes that there is or may be an instance 
of noncompliance with TSA requirements that presents an imminent threat 
to transportation security or public safety, he or she must report the 
instance immediately to the Security Coordinator, and the Security 
Coordinator must report the instance immediately to TSA.
    (d) No authorization to take remedial or disciplinary action. 
Neither the validation firm nor the validator is authorized to require 
any remedial action by, or to take any disciplinary or enforcement 
action against, the facility under assessment.
    (e) Prohibition on consecutive assessments. Unless otherwise 
authorized by TSA, a validation firm must not conduct more than two 
consecutive assessments of a person seeking approval, or renewal of 
approval, to operate a certified cargo screening facility.



Sec.  1522.125  Protection of information.

    (a) Sensitive Security Information. Each validation firm must comply 
with the requirements in 49 CFR part 1520 regarding the handling and 
protection of Sensitive Security Information (SSI).
    (b) Non-disclosure of proprietary information. Unless explicitly 
authorized by TSA, no validation firm, or any of its officers, Security 
Coordinators,

[[Page 313]]

validators, or employees, or individuals assisting in validations, may 
make an unauthorized release nor disseminate any information that TSA or 
an entity being assessed indicates is proprietary information.



Sec.  1522.127  Assessment report.

    (a) Each validator must prepare and submit to TSA a written 
assessment report, in a manner and form prescribed by TSA, within 30 
calendar days of completing each assessment.
    (b) The assessment report must include the following information, in 
addition to any other information otherwise required by TSA:
    (1) A description of the facilities, equipment, systems, processes, 
and/or procedures that were assessed and any other information as 
determined by TSA.
    (2) The validator's assessment regarding the facility's compliance 
with TSA requirements, including all elements of the applicable security 
program.
    (3) Signed attestation by the individual validator with 
responsibility for the assessment that no conflicts of interest existed 
with regard to the assessment and that the assessment was conducted 
impartially, professionally, and consistent with the standards set forth 
by TSA.



Sec.  1522.129  Recordkeeping requirements.

    (a) Each validation firm must maintain records demonstrating 
compliance with all statutes, regulations, directives, orders, and 
security programs that apply to operation as a validation firm, 
including the records listed below.
    (b) Each validation firm must retain the following records for 180 
days after the individual is no longer employed by the validation firm 
or is no longer acting as the firm's agent.
    (1) Records of all training and instruction given to each individual 
under the requirements of this subpart.
    (2) Records demonstrating that the validation firm has complied with 
the security threat assessment provisions of Sec.  1522.121.
    (3) Records about the qualifications of validators it uses to 
conduct assessments under this subpart.
    (c) Each validation firm must retain the following records until 
completion of the validation firm's next review under Sec.  1522.115, 
after which the records may be destroyed unless TSA instructs the 
validation firm to retain the records for a longer period.
    (1) Copies of all applications for approval, or renewal of approval, 
by TSA to operate as a validation firm under part 1522.
    (2) Copies of TSA's approval and renewals of approval as required by 
part 1522.
    (d) Each validation firm must retain assessment reports and copies 
of back-up documentation supporting each assessment report submitted to 
TSA for 42 months after the assessment.

[[Page 314]]



                  SUBCHAPTER C_CIVIL AVIATION SECURITY





PART 1540_CIVIL AVIATION SECURITY: GENERAL RULES--Table of Contents



                            Subpart A_General

Sec.
1540.1 Applicability of this subchapter and this part.
1540.3 Delegation of authority.
1540.5 Terms used in this subchapter.

   Subpart B_Responsibilities of Passengers and Other Individuals and 
                                 Persons

1540.101 Applicability of this subpart.
1540.103 Fraud and intentional falsification of records.
1540.105 Security responsibilities of employees and other persons.
1540.107 Submission to screening and inspection.
1540.109 Prohibition against interference with screening personnel.
1540.111 Carriage of weapons, explosives, and incendiaries by 
          individuals.
1540.113 Inspection of airman certificate.
1540.115 Threat assessments regarding citizens of the United States 
          holding or applying for FAA certificates, ratings, or 
          authorizations.
1540.117 Threat assessments regarding aliens holding or applying for FAA 
          certificates, ratings, or authorizations.

                  Subpart C_Security Threat Assessments

1540.201 Applicability and terms used in this subpart.
1540.203 Security threat assessment.
1540.205 Procedures for security threat assessment.
1540.207 [Reserved]
1540.209 Fees for security threat assessment.

 Subpart D_Responsibilities of Holders of TSA	Approved Security Programs

1540.301 Withdrawal of approval of a security program.
1540.303 [Reserved]

    Authority: 49 U.S.C. 114, 5103, 40113, 44901-44907, 44913-44914, 
44916-44918, 44935-44936, 44942, 46105.

    Source: 67 FR 8353, Feb. 22, 2002, unless otherwise noted.



                            Subpart A_General



Sec.  1540.1  Applicability of this subchapter and this part.

    This subchapter and this part apply to persons engaged in aviation-
related activities.



Sec.  1540.3  Delegation of authority.

    (a) Where the Administrator is named in this subchapter as 
exercising authority over a function, the authority is exercised by the 
Administrator or the Deputy Administrator, or any individual formally 
designated to act as the Administrator or the Deputy Administrator.
    (b) Where TSA or the designated official is named in this subchapter 
as exercising authority over a function, the authority is exercised by 
the official designated by the Administrator to perform that function.



Sec.  1540.5  Terms used in this subchapter.

    In addition to the terms in part 1500 of this chapter, the following 
terms are used in this subchapter:
    Air operations area (AOA) means a portion of an airport, specified 
in the airport security program, in which security measures specified in 
this part are carried out. This area includes aircraft movement areas, 
aircraft parking areas, loading ramps, and safety areas, for use by 
aircraft regulated under 49 CFR part 1544 or 1546, and any adjacent 
areas (such as general aviation areas) that are not separated by 
adequate security systems, measures, or procedures. This area does not 
include the secured area.
    Aircraft operator means a person who uses, causes to be used, or 
authorizes to be used an aircraft, with or without the right of legal 
control (as owner, lessee, or otherwise), for the purpose of air 
navigation including the piloting of aircraft, or on any part of the 
surface of an airport. In specific parts or sections of this subchapter, 
``aircraft operator'' is used to refer to specific types of operators as 
described in those parts or sections.

[[Page 315]]

    Airport operator means a person that operates an airport serving an 
aircraft operator or a foreign air carrier required to have a security 
program under part 1544 or 1546 of this chapter.
    Airport security program means a security program approved by TSA 
under Sec.  1542.101 of this chapter.
    Airport tenant means any person, other than an aircraft operator or 
foreign air carrier that has a security program under part 1544 or 1546 
of this chapter, that has an agreement with the airport operator to 
conduct business on airport property.
    Airport tenant security program means the agreement between the 
airport operator and an airport tenant that specifies the measures by 
which the tenant will perform security functions, and approved by TSA, 
under Sec.  1542.113 of this chapter.
    Approved, unless used with reference to another person, means 
approved by TSA.
    Cargo means property tendered for air transportation accounted for 
on an air waybill. All accompanied commercial courier consignments, 
whether or not accounted for on an air waybill, are also classified as 
cargo. Aircraft operator security programs further define the term 
``cargo.''
    Certified cargo screening facility (CCSF) means a facility certified 
by TSA to screen air cargo in accordance with part 1549. As used in this 
subchapter, ``certified cargo screening facility'' refers to the legal 
entity that operates a CCSF at a particular location.
    Certified cargo screening program (CCSP) means the program under 
which facilities are authorized to screen cargo to be offered for 
transport on certain passenger aircraft in accordance with 49 CFR part 
1549.
    Checked baggage means property tendered by or on behalf of a 
passenger and accepted by an aircraft operator for transport, which is 
inaccessible to passengers during flight. Accompanied commercial courier 
consignments are not classified as checked baggage.
    Escort means to accompany or monitor the activities of an individual 
who does not have unescorted access authority into or within a secured 
area or SIDA.
    Exclusive area means any portion of a secured area, AOA, or SIDA, 
including individual access points, for which an aircraft operator or 
foreign air carrier that has a security program under part 1544 or 1546 
of this chapter has assumed responsibility under Sec.  1542.111 of this 
chapter.
    Exclusive area agreement means an agreement between the airport 
operator and an aircraft operator or a foreign air carrier that has a 
security program under parts 1544 or 1546 of this chapter that permits 
such an aircraft operator or foreign air carrier to assume 
responsibility for specified security measures in accordance with Sec.  
1542.111 of this chapter.
    FAA means the Federal Aviation Administration.
    Flightcrew member means a pilot, flight engineer, or flight 
navigator assigned to duty in an aircraft during flight time.
    Indirect air carrier (IAC) means any person or entity within the 
United States not in possession of an FAA air carrier operating 
certificate, that undertakes to engage indirectly in air transportation 
of property, and uses for all or any part of such transportation the 
services of an air carrier. This does not include the United States 
Postal Service (USPS) or its representative while acting on the behalf 
of the USPS.
    Loaded firearm means a firearm that has a live round of ammunition, 
or any component thereof, in the chamber or cylinder or in a magazine 
inserted in the firearm.
    Passenger seating configuration means the total maximum number of 
seats for which the aircraft is type certificated that can be made 
available for passenger use aboard a flight, regardless of the number of 
seats actually installed, and includes that seat in certain aircraft 
that may be used by a representative of the FAA to conduct flight checks 
but is available for revenue purposes on other occasions.
    Private charter means any aircraft operator flight--
    (1) For which the charterer engages the total passenger capacity of 
the aircraft for the carriage of passengers; the passengers are invited 
by the charterer; the cost of the flight is

[[Page 316]]

borne entirely by the charterer and not directly or indirectly by any 
individual passenger; and the flight is not advertised to the public, in 
any way, to solicit passengers.
    (2) For which the total passenger capacity of the aircraft is used 
for the purpose of civilian or military air movement conducted under 
contract with the Government of the United States or the government of a 
foreign country.
    Public charter means any charter flight that is not a private 
charter.
    Scheduled passenger operation means an air transportation operation 
(a flight) from identified air terminals at a set time, which is held 
out to the public and announced by timetable or schedule, published in a 
newspaper, magazine, or other advertising medium.
    Screening function means the inspection of individuals and property 
for weapons, explosives, and incendiaries.
    Screening location means each site at which individuals or property 
are inspected for the presence of weapons, explosives, or incendiaries.
    Secured area means a portion of an airport, specified in the airport 
security program, in which certain security measures specified in part 
1542 of this chapter are carried out. This area is where aircraft 
operators and foreign air carriers that have a security program under 
part 1544 or 1546 of this chapter enplane and deplane passengers and 
sort and load baggage and any adjacent areas that are not separated by 
adequate security measures.
    Security Identification Display Area (SIDA) means a portion of an 
airport, specified in the airport security program, in which security 
measures specified in this part are carried out. This area includes the 
secured area and may include other areas of the airport.
    Standard security program means a security program issued by TSA 
that serves as a baseline for a particular type of operator. If TSA has 
issued a standard security program for a particular type of operator, 
unless otherwise authorized by TSA, each operator's security program 
consists of the standard security program together with any amendments 
and alternative procedures approved or accepted by TSA.
    Sterile area means a portion of an airport defined in the airport 
security program that provides passengers access to boarding aircraft 
and to which the access generally is controlled by TSA, or by an 
aircraft operator under part 1544 of this chapter or a foreign air 
carrier under part 1546 of this chapter, through the screening of 
persons and property.
    Unescorted access authority means the authority granted by an 
airport operator, an aircraft operator, foreign air carrier, or airport 
tenant under part 1542, 1544, or 1546 of this chapter, to individuals to 
gain entry to, and be present without an escort in, secured areas and 
SIDA's of airports.
    Unescorted access to cargo means the authority granted by an 
aircraft operator or IAC to individuals to have access to air cargo 
without an escort.

[67 FR 8353, Feb. 22, 2002, as amended at 67 FR 8209, Feb. 22, 2002; 71 
FR 30507, May 26, 2006; 74 FR 47700, Sept. 16, 2009]



   Subpart B_Responsibilities of Passengers and Other Individuals and 
                                 Persons



Sec.  1540.101  Applicability of this subpart.

    This subpart applies to individuals and other persons.



Sec.  1540.103  Fraud and intentional falsification of records.

    No person may make, or cause to be made, any of the following:
    (a) Any fraudulent or intentionally false statement in any 
application for any security program, access medium, or identification 
medium, or any amendment thereto, under this subchapter.
    (b) Any fraudulent or intentionally false entry in any record or 
report that is kept, made, or used to show compliance with this 
subchapter, or exercise any privileges under this subchapter.
    (c) Any reproduction or alteration, for fraudulent purpose, of any 
report, record, security program, access medium, or identification 
medium issued under this subchapter.

[[Page 317]]



Sec.  1540.105  Security responsibilities of employees and other persons.

    (a) No person may:
    (1) Tamper or interfere with, compromise, modify, attempt to 
circumvent, or cause a person to tamper or interfere with, compromise, 
modify, or attempt to circumvent any security system, measure, or 
procedure implemented under this subchapter.
    (2) Enter, or be present within, a secured area, AOA, SIDA or 
sterile area without complying with the systems, measures, or procedures 
being applied to control access to, or presence or movement in, such 
areas.
    (3) Use, allow to be used, or cause to be used, any airport-issued 
or airport-approved access medium or identification medium that 
authorizes the access, presence, or movement of persons or vehicles in 
secured areas, AOA's, or SIDA's in any other manner than that for which 
it was issued by the appropriate authority under this subchapter.
    (b) The provisions of paragraph (a) of this section do not apply to 
conducting inspections or tests to determine compliance with this part 
or 49 U.S.C. Subtitle VII authorized by:
    (1) TSA, or
    (2) The airport operator, aircraft operator, or foreign air carrier, 
when acting in accordance with the procedures described in a security 
program approved by TSA.



Sec.  1540.107  Submission to screening and inspection.

    (a) No individual may enter a sterile area or board an aircraft 
without submitting to the screening and inspection of his or her person 
and accessible property in accordance with the procedures being applied 
to control access to that area or aircraft under this subchapter.
    (b) An individual must provide his or her full name, as defined in 
Sec.  1560.3 of this chapter, date of birth, and gender when--
    (1) The individual, or a person on the individual's behalf, makes a 
reservation for a covered flight, as defined in Sec.  1560.3 of this 
chapter, or
    (2) The individual makes a request for authorization to enter a 
sterile area.
    (c) An individual may not enter a sterile area or board an aircraft 
if the individual does not present a verifying identity document as 
defined in Sec.  1560.3 of this chapter, when requested for purposes of 
watch list matching under Sec.  1560.105(c), unless otherwise authorized 
by TSA on a case-by-case basis.

[73 FR 64061, Oct. 28, 2008]



Sec.  1540.109  Prohibition against interference with screening personnel.

    No person may interfere with, assault, threaten, or intimidate 
screening personnel in the performance of their screening duties under 
this subchapter.



Sec.  1540.111  Carriage of weapons, explosives, and incendiaries by individuals.

    (a) On an individual's person or accessible property--prohibitions. 
Except as provided in paragraph (b) of this section, an individual may 
not have a weapon, explosive, or incendiary, on or about the 
individual's person or accessible property--
    (1) When performance has begun of the inspection of the individual's 
person or accessible property before entering a sterile area, or before 
boarding an aircraft for which screening is conducted under this 
subchapter;
    (2) When the individual is entering or in a sterile area; or
    (3) When the individual is attempting to board or onboard an 
aircraft for which screening is conducted under Sec. Sec.  1544.201, 
1546.201, or 1562.23 of this chapter.
    (b) On an individual's person or accessible property--permitted 
carriage of a weapon. Paragraph (a) of this section does not apply as to 
carriage of firearms and other weapons if the individual is one of the 
following:
    (1) Law enforcement personnel required to carry a firearm or other 
weapons while in the performance of law enforcement duty at the airport.
    (2) An individual authorized to carry a weapon in accordance with 
Sec. Sec.  1544.219, 1544.221, 1544.223, 1546.211, or subpart B of part 
1562 of this chapter.
    (3) An individual authorized to carry a weapon in a sterile area 
under a security program.

[[Page 318]]

    (c) In checked baggage. A passenger may not transport or offer for 
transport in checked baggage or in baggage carried in an inaccessible 
cargo hold under Sec.  1562.23 of this chapter:
    (1) Any loaded firearm(s).
    (2) Any unloaded firearm(s) unless--
    (i) The passenger declares to the aircraft operator, either orally 
or in writing, before checking the baggage, that the passenger has a 
firearm in his or her bag and that it is unloaded;
    (ii) The firearm is unloaded;
    (iii) The firearm is carried in a hard-sided container; and
    (iv) The container in which it is carried is locked, and only the 
passenger retains the key or combination.
    (3) Any unauthorized explosive or incendiary.
    (d) Ammunition. This section does not prohibit the carriage of 
ammunition in checked baggage or in the same container as a firearm. 
Title 49 CFR part 175 provides additional requirements governing 
carriage of ammunition on aircraft.

[67 FR 8353, Feb. 22, 2002, as amended at 67 FR 41639, June 19, 2002; 70 
FR 41600, July 19, 2005; 71 FR 30507, May 26, 2006]



Sec.  1540.113  Inspection of airman certificate.

    Each individual who holds an airman certificate, medical 
certificate, authorization, or license issued by the FAA must present it 
for inspection upon a request from TSA.



Sec.  1540.115  Threat assessments regarding citizens of the United States holding or applying for FAA certificates, ratings, or authorizations.

    (a) Applicability. This section applies when TSA has determined that 
an individual who is a United States citizen and who holds, or is 
applying for, an airman certificate, rating, or authorization issued by 
the Administrator, poses a security threat.
    (b) Definitions. The following terms apply in this section:
    Administrator means the Administrator of the Transportation Security 
Administration.
    Assistant Administrator means the Assistant Administrator for 
Intelligence for TSA.
    Date of service means--
    (1) The date of personal delivery in the case of personal service;
    (2) The mailing date shown on the certificate of service;
    (3) The date shown on the postmark if there is no certificate of 
service; or
    (4) Another mailing date shown by other evidence if there is no 
certificate of service or postmark.
    Deputy Administrator means the officer next in rank below the 
Administrator.
    FAA Administrator means the Administrator of the Federal Aviation 
Administration.
    Individual means an individual whom TSA determines poses a security 
threat.
    (c) Security threat. An individual poses a security threat when the 
individual is suspected of posing, or is known to pose--
    (1) A threat to transportation or national security;
    (2) A threat of air piracy or terrorism;
    (3) A threat to airline or passenger security; or
    (4) A threat to civil aviation security.
    (d) Representation by counsel. The individual may, if he or she so 
chooses, be represented by counsel at his or her own expense.
    (e) Initial Notification of Threat Assessment--(1) Issuance. If the 
Assistant Administrator determines that an individual poses a security 
threat, the Assistant Administrator serves upon the individual an 
Initial Notification of Threat Assessment and serves the determination 
upon the FAA Administrator. The Initial Notification includes--
    (i) A statement that the Assistant Administrator personally has 
reviewed the materials upon which the Initial Notification was based; 
and
    (ii) A statement that the Assistant Administrator has determined 
that the individual poses a security threat.
    (2) Request for Materials. Not later than 15 calendar days after the 
date of service of the Initial Notification, the individual may serve a 
written request for copies of the releasable materials upon which the 
Initial Notification was based.

[[Page 319]]

    (3) TSA response. Not later than 30 calendar days, or such longer 
period as TSA may determine for good cause, after receiving the 
individual's request for copies of the releasable materials upon which 
the Initial Notification was based, TSA serves a response. TSA will not 
include in its response any classified information or other information 
described in paragraph (g) of this section.
    (4) Reply. The individual may serve upon TSA a written reply to the 
Initial Notification of Threat Assessment not later than 15 calendar 
days after the date of service of the Initial Notification, or the date 
of service of TSA's response to the individual's request under paragraph 
(e)(2) if such a request was served. The reply may include any 
information that the individual believes TSA should consider in 
reviewing the basis for the Initial Notification.
    (5) TSA final determination. Not later than 30 calendar days, or 
such longer period as TSA may determine for good cause, after TSA 
receives the individual's reply, TSA serves a final determination in 
accordance with paragraph (f) of this section.
    (f) Final Notification of Threat Assessment--(1) In general. The 
Deputy Administrator reviews the Initial Notification, the materials 
upon which the Initial Notification was based, the individual's reply, 
if any, and any other materials or information available to him.
    (2) Review and Issuance of Final Notification. If the Deputy 
Administrator determines that the individual poses a security threat, 
the Administrator reviews the Initial Notification, the materials upon 
which the Initial Notification was based, the individual's reply, if 
any, and any other materials or information available to him. If the 
Administrator determines that the individual poses a security threat, 
the Administrator serves upon the individual a Final Notification of 
Threat Assessment and serves the determination upon the FAA 
Administrator. The Final Notification includes a statement that the 
Administrator personally has reviewed the Initial Notification, the 
individual's reply, if any, and any other materials or information 
available to him, and has determined that the individual poses a 
security threat.
    (3) Withdrawal of Initial Notification. If the Deputy Administrator 
does not determine that the individual poses a security threat, or upon 
review, the Administrator does not determine that the individual poses a 
security threat, TSA serves upon the individual a Withdrawal of the 
Initial Notification and provides a copy of the Withdrawal to the FAA 
Administrator.
    (g) Nondisclosure of certain information. In connection with the 
procedures under this section, TSA does not disclose to the individual 
classified information, as defined in Executive Order 12968 section 
1.1(d), and reserves the right not to disclose any other information or 
material not warranting disclosure or protected from disclosure under 
law.

[68 FR 3761, Jan. 24, 2003, as amended at 68 FR 49721, Aug. 19, 2003]



Sec.  1540.117  Threat assessments regarding aliens holding or applying for FAA certificates, ratings, or authorizations.

    (a) Applicability. This section applies when TSA has determined that 
an individual who is not a citizen of the United States and who holds, 
or is applying for, an airman certificate, rating, or authorization 
issued by the FAA Administrator, poses a security threat.
    (b) Definitions. The following terms apply in this section:
    Assistant Administrator means the Assistant Administrator for 
Intelligence for TSA.
    Date of service means--
    (1) The date of personal delivery in the case of personal service;
    (2) The mailing date shown on the certificate of service;
    (3) The date shown on the postmark if there is no certificate of 
service; or
    (4) Another mailing date shown by other evidence if there is no 
certificate of service or postmark.
    Deputy Administrator means the officer next in rank below the 
Administrator.
    FAA Administrator means the Administrator of the Federal Aviation 
Administration.

[[Page 320]]

    Individual means an individual whom TSA determines poses a security 
threat.
    (c) Security threat. An individual poses a security threat when the 
individual is suspected of posing, or is known to pose--
    (1) A threat to transportation or national security;
    (2) A threat of air piracy or terrorism;
    (3) A threat to airline or passenger security; or
    (4) A threat to civil aviation security.
    (d) Representation by counsel. The individual may, if he or she so 
chooses, be represented by counsel at his or her own expense.
    (e) Initial Notification of Threat Assessment--(1) Issuance. If the 
Assistant Administrator determines that an individual poses a security 
threat, the Assistant Administrator serves upon the individual an 
Initial Notification of Threat Assessment and serves the determination 
upon the FAA Administrator. The Initial Notification includes--
    (i) A statement that the Assistant Administrator personally has 
reviewed the materials upon which the Initial Notification was based; 
and
    (ii) A statement that the Assistant Administrator has determined 
that the individual poses a security threat.
    (2) Request for materials. Not later than 15 calendar days after the 
date of service of the Initial Notification, the individual may serve a 
written request for copies of the releasable materials upon which the 
Initial Notification was based.
    (3) TSA response. Not later than 30 calendar days, or such longer 
period as TSA may determine for good cause, after receiving the 
individual's request for copies of the releasable materials upon which 
the Initial Notification was based, TSA serves a response. TSA will not 
include in its response any classified information or other information 
described in paragraph (g) of this section.
    (4) Reply. The individual may serve upon TSA a written reply to the 
Initial Notification of Threat Assessment not later than 15 calendar 
days after the date of service of the Initial Notification, or the date 
of service of TSA's response to the individual's request under paragraph 
(e)(2) if such a request was served. The reply may include any 
information that the individual believes TSA should consider in 
reviewing the basis for the Initial Notification.
    (5) TSA final determination. Not later than 30 calendar days, or 
such longer period as TSA may determine for good cause, after TSA 
receives the individual's reply, TSA serves a final determination in 
accordance with paragraph (f) of this section.
    (f) Final Notification of Threat Assessment--(1) In general. The 
Deputy Administrator reviews the Initial Notification, the materials 
upon which the Initial Notification was based, the individual's reply, 
if any, and any other materials or information available to him.
    (2) Issuance of Final Notification. If the Deputy Administrator 
determines that the individual poses a security threat, the Deputy 
Administrator serves upon the individual a Final Notification of Threat 
Assessment and serves the determination upon the FAA Administrator. The 
Final Notification includes a statement that the Deputy Administrator 
personally has reviewed the Initial Notification, the individual's 
reply, if any, and any other materials or information available to him, 
and has determined that the individual poses a security threat.
    (3) Withdrawal of Initial Notification. If the Deputy Administrator 
does not determine that the individual poses a security threat, TSA 
serves upon the individual a Withdrawal of the Initial Notification and 
provides a copy of the Withdrawal to the FAA Administrator.
    (g) Nondisclosure of certain information. In connection with the 
procedures under this section, TSA does not disclose to the individual 
classified information, as defined in Executive Order 12968 section 
1.1(d), and TSA reserves the right not to disclose any other information 
or material not warranting disclosure or protected from disclosure under 
law.

[68 FR 3768, Jan. 24, 2003]

[[Page 321]]



                  Subpart C_Security Threat Assessments

    Source: 74 FR 47700, Sept. 16, 2009, unless otherwise noted.



Sec.  1540.201  Applicability and terms used in this subpart.

    (a) This subpart includes the procedures that certain aircraft 
operators, foreign air carriers, indirect air carriers, certified cargo 
screening facilities, and TSA-approved validation firms must use to have 
security threat assessments performed on certain individuals pursuant to 
49 CFR 1522.121, 1544.228, 1546.213, 1548.7, 1548.15, 1548.16, and 
1549.113. This subpart applies to the following:
    (1) Each aircraft operator operating under a full program or full 
all-cargo program described in 49 CFR 1544.101(a) or (h).
    (2) Each foreign air carrier operating under a program described in 
49 CFR 1546.101(a), (b), or (e).
    (3) Each indirect air carrier operating under a security program 
described in 49 CFR part 1548.
    (4) Each applicant applying for unescorted access to cargo under one 
of the programs described in (a)(1) through (a)(3) of this section.
    (5) Each proprietor, general partner, officer, director, or owner of 
an indirect air carrier as described in 49 CFR 1548.16.
    (6) Each certified cargo screening facility described in 49 CFR part 
1549.
    (7) Each individual a certified cargo screening facility authorizes 
to perform screening or supervise screening.
    (8) Each individual the certified cargo screening facility 
authorizes to have unescorted access to cargo at any time from the time 
it is screened until the time it is tendered to an indirect air carrier 
under 49 CFR part 1548, an aircraft operator under part 1544, or a 
foreign air carrier under part 1546.
    (9) The senior manager or representative of its facility in control 
of the operations of a certified cargo screening facility under 49 CFR 
part 1549.
    (10) Each TSA-approved validation firm for the certified cargo 
screening program described in 49 CFR part 1522 subpart B.
    (11) Each individual of the TSA-approved validation firm under 49 
CFR part 1522 subpart B who supervises, conducts, or assists in the 
validation.
    (12) The security coordinator and alternates of each TSA-approved 
validation firm under 49 CFR part 1522 subpart B and of each certified 
cargo screening facility.
    (b) For purposes of this subpart--
    Applicant means the individuals listed in paragraph (a) of this 
section.
    Operator means an aircraft operator, foreign air carrier, and 
indirect air carrier listed in paragraphs (a)(1) through (a)(3) of this 
section, a certified cargo screening facility described in paragraph 
(a)(6) of this section, and a TSA-approved validator described in 
paragraph (a)(10) of this section.
    (c) An applicant poses a security threat under this subpart when TSA 
determines that he or she is known to pose or is suspected of posing a 
threat--
    (1) To national security;
    (2) To transportation security; or
    (3) Of terrorism.



Sec.  1540.203  Security threat assessment.

    (a) Each operator subject to this subpart must ensure that each of 
the following undergoes a security threat assessment or a comparable 
security threat assessment described in Sec.  1540.205:
    (1) Personnel of TSA-approved validation firms, as described in 
Sec.  1522.121.
    (2) Cargo personnel in the United States, as described in Sec.  
1544.228.
    (3) Cargo personnel in the United States, as described in Sec.  
1546.213.
    (4) Individuals with unescorted access to cargo, as described in 
Sec.  1548.15.
    (5) Proprietors, general partners, officers, directors, and owners 
of an indirect air carrier, as described in Sec.  1548.16.
    (6) Personnel of certified cargo screening facilities, as described 
in Sec.  1549.111.
    (b) Each operator must verify the identity and work authorization of 
each applicant and examine the document(s) presented by the applicant to 
prove identity and work authorization to determine whether they appear 
to be genuine and relate to the applicant presenting them.

[[Page 322]]

    (c) Each operator must submit to TSA a security threat assessment 
application for each applicant that is dated and signed by the applicant 
and that includes the following:
    (1) Legal name, including first, middle, and last; any applicable 
suffix; and any other names used previously.
    (2) Current mailing address, including residential address if it 
differs from the current mailing address; all other residential 
addresses for the previous five years; and e-mail address if the 
applicant has an e-mail address.
    (3) Date and place of birth.
    (4) Social security number (submission is voluntary, although 
failure to provide it may delay or prevent completion of the threat 
assessment).
    (5) Gender.
    (6) Country of citizenship.
    (7) If the applicant is a U.S. citizen born abroad or a naturalized 
U.S. citizen, their U.S. passport number; or the 10-digit document 
number from the applicant's Certificate of Birth Abroad, Form DS-1350.
    (8) If the applicant is not a U.S. citizen, the applicant's Alien 
Registration Number.
    (9) The applicant's daytime telephone number.
    (10) The applicant's current employer(s), and the address and 
telephone number of the employer(s).
    (11) A Privacy Notice as required in the security program and the 
following statement:

    The information I have provided on this application is true, 
complete, and correct to the best of my knowledge and belief and is 
provided in good faith. I understand that a knowing and willful false 
statement, or an omission of a material fact, on this application can be 
punished by fine or imprisonment or both (see section 1001 of Title 18 
United States Code), and may be grounds for denial of authorization or 
in the case of parties regulated under this section, removal of 
authorization to operate under this chapter, if applicable.
    I acknowledge that if I do not successfully complete the security 
threat assessment, the Transportation Security Administration may notify 
my employer. If TSA or other law enforcement agency becomes aware that I 
may pose an imminent threat to an operator or facility, TSA may provide 
limited information necessary to reduce the risk of injury or damage to 
the operator or facility.

    (d) Each operator must retain the following for 180 days following 
the end of the applicant's service to the operator:
    (1) The applicant's signed security threat assessment application.
    (2) Copies of the applicant's document(s) used to verify identity 
and work authorization.
    (3) Any notifications or documents sent to or received from TSA 
relating to the applicant's application and security threat assessment.
    (4) As applicable, a copy of the applicant's credential evidencing 
completion of a threat assessment deemed comparable under paragraph (f) 
of this section.
    (e) Records under this section may include electronic documents with 
electronic signature or other means of personal authentication, where 
accepted by TSA.
    (f) TSA may determine that a security threat assessment conducted by 
another governmental agency is comparable to a security threat 
assessment conducted under this subpart. Individuals who have 
successfully completed a comparable security threat assessment are not 
required to undergo the security threat assessments described in this 
subpart. If TSA makes a comparability determination under this section, 
TSA will so notify the public. In making a comparability determination, 
TSA will consider--
    (i) The minimum standards used for the security threat assessment;
    (ii) The frequency of the security threat assessment;
    (iii) The date of the most recent threat assessment; and
    (iv) Other factors TSA deems appropriate.
    (g) To apply for a comparability determination, the agency seeking 
the determination must contact the Assistant Program Manager, Attn: 
Federal Agency Comparability Check, Hazmat Threat Assessment Program, 
Transportation Security Administration, 601 South 12th Street, 
Arlington, VA 20598-6019.
    (h) TSA has determined that each of the following are comparable to 
the security threat assessment required in this subpart:
    (1) A CHRC conducted in accordance with Sec. Sec.  1542.209, 
1544.229, or 1544.230 that

[[Page 323]]

includes a name-based check conducted by TSA.
    (2) A security threat assessment conducted under 49 CFR part 1572 
for the Transportation Worker Identification Credential or Hazardous 
Materials Endorsement programs.
    (3) A security threat assessment conducted for the Free and Secure 
Trade (FAST) program administered by U.S. Customs and Border Protection.
    (i) If asserting completion of a comparable threat assessment listed 
in paragraph (h) of this section, an individual must--
    (1) Present the credential that corresponds to successful completion 
of the comparable assessment to the operator so the operator may retain 
a copy of it; and
    (2) Notify the operator when the credential that corresponds to 
successful completion of the comparable assessment expires or is revoked 
for any reason.
    (j) A security threat assessment conducted under this subpart 
remains valid for five years from the date that TSA issues a 
Determination of No Security Threat or a Final Determination of Threat 
Assessment, except--
    (1) If the applicant is no longer authorized to be in the United 
States, the security threat assessment and the privileges it conveys 
expire on the date lawful presence expires; or
    (2) If the applicant asserts completion of a comparable threat 
assessment, it expires five years from the date of issuance of the 
credential that corresponds to the comparable assessment, or the date on 
which the credential is revoked for any reason.



Sec.  1540.205  Procedures for security threat assessment.

    (a) Contents of security threat assessment. The security threat 
assessment TSA conducts under this subpart includes an intelligence-
related check and a final disposition.
    (b) Intelligence-related check. To conduct an intelligence-related 
check, TSA completes the following procedures:
    (1) Reviews the applicant information required in 49 CFR 1540.203.
    (2) Searches domestic and international government databases to 
determine if an applicant meets the requirements of 49 CFR 1540.201(c) 
or to confirm an applicant's identity.
    (3) Adjudicates the results in accordance with 49 CFR 1540.201(c).
    (c) Wants, warrants, deportable aliens. If the searches listed in 
paragraph (b)(2) of this section indicate that an applicant has an 
outstanding want or warrant, or is a deportable alien under the 
immigration laws of the United States, TSA sends the applicant's 
information to the appropriate law enforcement or immigration agency.
    (d) Final disposition. Following completion of the procedures 
described in paragraph (b), the following procedures apply, as 
appropriate:
    (1) TSA serves a Determination of No Security Threat on the 
applicant and operator if TSA determines that the applicant meets the 
security threat assessment standards in 49 CFR 1540.201(c).
    (2) TSA serves an Initial Determination of Threat Assessment on the 
applicant, if TSA determines that the applicant does not meet the 
security threat assessment standards in 49 CFR 1540.201(c). The Initial 
Determination of Threat Assessment includes--
    (i) A statement that TSA has determined that the applicant is 
suspected of posing or poses a security threat;
    (ii) The basis for the determination;
    (iii) Information about how the applicant may appeal the 
determination, as described in 49 CFR 1515.9; and
    (iv) A statement that if the applicant chooses not to appeal TSA's 
determination within 60 days of receipt of the Initial Determination, or 
does not request an extension of time within 60 days of the Initial 
Determination of Threat Assessment in order to file an appeal, the 
Initial Determination becomes a Final Determination of Security Threat 
Assessment.
    (3) TSA serves an Initial Determination of Threat Assessment and 
Immediate Revocation on the applicant and the applicant's operator or 
other operator as approved by TSA, where appropriate, if TSA determines 
that the applicant does not meet the security threat assessment 
standards in 49 CFR 1540.201(c) and may pose an imminent

[[Page 324]]

threat to transportation or national security, or of terrorism. The 
Initial Determination of Threat Assessment and Immediate Revocation 
includes--
    (i) A statement that TSA has determined that the applicant is 
suspected of posing or poses an imminent security threat;
    (ii) The basis for the determination;
    (iii) Information about how the applicant may appeal the 
determination, as described in 49 CFR 1515.5(h) or 1515.9(h), as 
applicable; and
    (iv) A statement that if the applicant chooses not to appeal TSA's 
determination within 60 days of receipt of the Initial Determination, or 
does not request an extension of time within 60 days of the Initial 
Determination of Threat Assessment in order to file an appeal, the 
Initial Determination becomes a Final Determination of Security Threat 
Assessment.
    (4) If the applicant does not appeal the Initial Determination of 
Threat Assessment or Initial Determination of Threat Assessment and 
Immediate Revocation, or if TSA does not grant the appeal, TSA serves a 
Final Determination of Threat Assessment on the individual and the 
applicant.
    (5) If the applicant appeals an Initial Determination of Threat 
Assessment, the procedures in 49 CFR 1515.5 or 1515.9 apply.



Sec.  1540.207  [Reserved]



Sec.  1540.209  Fees for security threat assessment.

    This section describes the payment process for completion of the 
security threat assessments required under subpart.
    (a) Fees for security threat assessment. (1) TSA routinely 
establishes and collects fees to conduct the security threat assessment 
process. These fees apply to all entities requesting a security threat 
assessment. TSA reviews the amount of the fee periodically, at least 
once every two years, to determine the current cost of conducting 
security threat assessments. TSA determines fee amounts and any 
necessary revisions to the fee amounts based on current costs, using a 
method of analysis consistent with widely accepted accounting principles 
and practices, and calculated in accordance with the provisions of 31 
U.S.C. 9701 and other applicable Federal law.
    (2) TSA will publish fee amounts and any revisions to the fee 
amounts as a notice in the Federal Register.
    (b) [Reserved]
    (c) Remittance of fees. (1) The fees required under this subpart 
must be remitted to TSA in a form and manner acceptable to TSA each time 
the applicant or an aircraft operator, foreign air carrier, indirect air 
carrier, certified cargo screening facility, or TSA-approved validation 
firm submits the information required under Sec.  1540.203 or Sec.  
1540.207 to TSA.
    (2) Fees remitted to TSA under this subpart must be payable to the 
``Transportation Security Administration'' in U.S. currency and drawn on 
a U.S. bank.
    (3) TSA will not issue any fee refunds, unless a fee was paid in 
error.



 Subpart D_Responsibilities of Holders of TSA-Approved Security Programs

    Source: 74 FR 47703, Sept. 16, 2009, unless otherwise noted.



Sec.  1540.301  Withdrawal of approval of a security program.

    (a) Applicability. This section applies to holders of a security 
program approved or accepted by TSA under 49 CFR chapter XII, subchapter 
C.
    (b) Withdrawal of security program approval. TSA may withdraw the 
approval of a security program, if TSA determines continued operation is 
contrary to security and the public interest, as follows:
    (1) Notice of proposed withdrawal of approval. TSA will serve a 
Notice of Proposed Withdrawal of Approval, which notifies the holder of 
the security program, in writing, of the facts, charges, and applicable 
law, regulation, or order that form the basis of the determination.
    (2) Security program holder's reply. The holder of the security 
program may respond to the Notice of Proposed Withdrawal of Approval no 
later than 15 calendar days after receipt of the withdrawal by providing 
the designated official, in writing, with any material

[[Page 325]]

facts, arguments, applicable law, and regulation.
    (3) TSA review. The designated official will consider all 
information available, including any relevant material or information 
submitted by the holder of the security program, before either issuing a 
Withdrawal of Approval of the security program or rescinding the Notice 
of Proposed Withdrawal of Approval. If TSA issues a Withdrawal of 
Approval, it becomes effective upon receipt by the holder of the 
security program, or 15 calendar days after service, whichever occurs 
first.
    (4) Petition for reconsideration. The holder of the security program 
may petition TSA to reconsider its Withdrawal of Approval by serving a 
petition for consideration no later than 15 calendar days after the 
holder of the security program receives the Withdrawal of Approval. The 
holder of the security program must serve the Petition for 
Reconsideration on the designated official. Submission of a Petition for 
Reconsideration will not stay the Withdrawal of Approval. The holder of 
the security program may request the designated official to stay the 
Withdrawal of Approval pending review of and decision on the Petition.
    (5) Assistant Secretary's review. The designated official transmits 
the Petition together with all pertinent information to the Assistant 
Secretary for reconsideration. The Assistant Secretary will dispose of 
the Petition within 15 calendar days of receipt by either directing the 
designated official to rescind the Withdrawal of Approval or by 
affirming the Withdrawal of Approval. The decision of the Assistant 
Secretary constitutes a final agency order subject to judicial review in 
accordance with 49 U.S.C. 46110.
    (6) Emergency withdrawal. If TSA finds that there is an emergency 
with respect to aviation security requiring immediate action that makes 
the procedures in this section contrary to the public interest, the 
designated official may issue an Emergency Withdrawal of Approval of a 
security program without first issuing a Notice of Proposed Withdrawal 
of Approval. The Emergency Withdrawal would be effective on the date 
that the holder of the security program receives the emergency 
withdrawal. In such a case, the designated official will send the holder 
of the security program a brief statement of the facts, charges, 
applicable law, regulation, or order that forms the basis for the 
Emergency Withdrawal. The holder of the security program may submit a 
Petition for Reconsideration under the procedures in paragraphs (b)(4) 
through (b)(5) of this section; however, this petition will not stay the 
effective date of the Emergency Withdrawal.
    (c) Service of documents for withdrawal of approval of security 
program proceedings. Service may be accomplished by personal delivery, 
certified mail, or express courier. Documents served on the holder of a 
security program will be served at its official place of business as 
designated in its application for approval or its security program. 
Documents served on TSA must be served to the address noted in the 
Notice of Withdrawal of Approval or Withdrawal of Approval, whichever is 
applicable.
    (1) Certificate of service. An individual may attach a certificate 
of service to a document tendered for filing. A certificate of service 
must consist of a statement, dated and signed by the person filing the 
document, that the document was personally delivered, served by 
certified mail on a specific date, or served by express courier on a 
specific date.
    (2) Date of service. The date of service is--
    (i) The date of personal delivery;
    (ii) If served by certified mail, the mailing date shown on the 
certificate of service, the date shown on the postmark if there is no 
certificate of service, or other mailing date shown by other evidence if 
there is no certificate of service or postmark; or
    (iii) If served by express courier, the service date shown on the 
certificate of service, or by other evidence if there is no certificate 
of service.
    (d) Extension of time. TSA may grant an extension of time to the 
limits set forth in this section for good cause shown. A security 
program holder must submit a request for an extension of time in 
writing, and TSA must receive it at least two days before the due date 
in order to be considered. TSA may grant itself an extension of time for 
good cause.

[[Page 326]]



Sec.  1540.303  [Reserved]



PART 1542_AIRPORT SECURITY--Table of Contents



                            Subpart A_General

Sec.
1542.1 Applicability of this part.
1542.3 Airport security coordinator.
1542.5 Inspection authority.

                   Subpart B_Airport Security Program

1542.101 General requirements.
1542.103 Content.
1542.105 Approval and amendments.
1542.103 Changed conditions affecting security.
1542.109 Alternate means of compliance.
1542.111 Exclusive area agreements.
1542.113 Airport tenant security programs.

                          Subpart C_Operations

1542.201 Security of the secured area.
1542.203 Security of the air operations area (AOA).
1542.205 Security of the security identification display area (SIDA).
1542.207 Access control systems.
1542.209 Fingerprint-based criminal history records checks (CHRC).
1542.211 Identification systems.
1542.213 Training.
1542.215 Law enforcement support.
1542.217 Law enforcement personnel.
1542.219 Supplementing law enforcement personnel.
1542.221 Records of law enforcement response.

                     Subpart D_Contingency Measures

1542.301 Contingency plan.
1542.303 Security Directives and Information Circulars.
1542.305 Public advisories.
1542.307 Incident management.

    Authority: 49 U.S.C. 114, 5103, 40113, 44901-44905, 44907, 44913-
44914, 44916-44917, 44935-44936, 44942, 46105.

    Source: 67 FR 8355, Feb. 22, 2002, unless otherwise noted.



                            Subpart A_General



Sec.  1542.1  Applicability of this part.

    This part describes aviation security rules governing:
    (a) The operation of airports regularly serving aircraft operations 
required to be under a security program under part 1544 of this chapter, 
as described in this part.
    (b) The operation of airport regularly serving foreign air carrier 
operations required to be under a security program under part 1546 of 
this chapter, as described in this part.
    (c) Each airport operator that receives a Security Directive or 
Information Circular and each person who receives information from a 
Security Directive or Information Circular issued by the Designated 
official for Civil Aviation Security.
    (d) Each airport operator that does not have a security program 
under this part that serves an aircraft operator operating under a 
security program under part 1544 of this chapter, or a foreign air 
carrier operating under a security program under part 1546 of this 
chapter. Such airport operators must comply with Sec.  1542.5(e).

[67 FR 8355, Feb. 22, 2002, as amended at 71 FR 30509, May 26, 2006]



Sec.  1542.3  Airport security coordinator.

    (a) Each airport operator must designate one or more Airport 
Security Coordinator(s) (ASC) in its security program.
    (b) The airport operator must ensure that one or more ASCs:
    (1) Serve as the airport operator's primary and immediate contact 
for security-related activities and communications with TSA. Any 
individual designated as an ASC may perform other duties in addition to 
those described in this paragraph (b).
    (2) Is available to TSA on a 24-hour basis.
    (3) Review with sufficient frequency all security-related functions 
to ensure that all are effective and in compliance with this part, its 
security program, and applicable Security Directives.
    (4) Immediately initiate corrective action for any instance of non-
compliance with this part, its security program, and applicable Security 
Directives.
    (5) Review and control the results of employment history, 
verification, and criminal history records checks required under Sec.  
1542.209.
    (6) Serve as the contact to receive notification from individuals 
applying for unescorted access of their intent to seek correction of 
their criminal history record with the FBI.

[[Page 327]]

    (c) After July 17, 2003, no airport operator may use, nor may it 
designate any person as, an ASC unless that individual has completed 
subject matter training, as specified in its security program, to 
prepare the individual to assume the duties of the position. The airport 
operator must maintain ASC training documentation until at least 180 
days after the withdrawal of an individual's designation as an ASC.
    (d) An individual's satisfactory completion of initial ASC training 
required under paragraph (c) of this section satisfies that requirement 
for all future ASC designations for that individual, except for site 
specific information, unless there has been a two or more year break in 
service as an active and designated ASC.



Sec.  1542.5  Inspection authority.

    (a) Each airport operator must allow TSA, at any time or place, to 
make any inspections or tests, including copying records, to determine 
compliance of an airport operator, aircraft operator, foreign air 
carrier, indirect air carrier, or other airport tenants with--
    (1) This subchapter and any security program under this subchapter, 
and part 1520 of this chapter; and
    (2) 49 U.S.C. Subtitle VII, as amended.
    (b) At the request of TSA, each airport operator must provide 
evidence of compliance with this part and its airport security program, 
including copies of records.
    (c) TSA may enter and be present within secured areas, AOA's, and 
SIDA's without access media or identification media issued or approved 
by an airport operator or aircraft operator, in order to inspect or test 
compliance, or perform other such duties as TSA may direct.
    (d) At the request of TSA and upon the completion of SIDA training 
as required in a security program, each airport operator promptly must 
issue to TSA personnel access and identification media to provide TSA 
personnel with unescorted access to, and movement within, secured areas, 
AOA's, and SIDA's.
    (e) TSA may enter and be present at an airport that does not have a 
security program under this part, without access media or identification 
media issued or approved by an airport operator or aircraft operator, to 
inspect an aircraft operator operating under a security program under 
part 1544 of this chapter, or a foreign air carrier operating under a 
security program under part 1546 of this chapter.

[67 FR 8355, Feb. 22, 2002, as amended at 71 FR 30509, May 26, 2006]



                   Subpart B_Airport Security Program



Sec.  1542.101  General requirements.

    (a) No person may operate an airport subject to Sec.  1542.103 
unless it adopts and carries out a security program that--
    (1) Provides for the safety and security of persons and property on 
an aircraft operating in air transportation or intrastate air 
transportation against an act of criminal violence, aircraft piracy, and 
the introduction of an unauthorized weapon, explosive, or incendiary 
onto an aircraft;
    (2) Is in writing and is signed by the airport operator;
    (3) Includes the applicable items listed in Sec.  1542.103;
    (4) Includes an index organized in the same subject area sequence as 
Sec.  1542.103; and
    (5) Has been approved by TSA.
    (b) Each airport operator subject to Sec.  1542.103 must maintain 
one current and complete copy of its security program and provide a copy 
to TSA upon request.
    (c) Each airport operator subject to Sec.  1542.103 must--
    (1) Restrict the distribution, disclosure, and availability of 
sensitive security information (SSI), as defined in part 1520 of this 
chapter, to persons with a need to know; and
    (2) Refer all requests for SSI by other persons to TSA.

[67 FR 8355, Feb. 22, 2002, as amended at 71 FR 30509, May 26, 2006]



Sec.  1542.103  Content.

    (a) Complete program. Except as otherwise approved by TSA, each 
airport operator regularly serving operations of an aircraft operator or 
foreign air carrier described in Sec.  1544.101(a)(1) or

[[Page 328]]

Sec.  1546.101(a) of this chapter, must include in its security program 
the following:
    (1) The name, means of contact, duties, and training requirements of 
the ASC required under Sec.  1542.3.
    (2) [Reserved]
    (3) A description of the secured areas, including--
    (i) A description and map detailing boundaries and pertinent 
features;
    (ii) Each activity or entity on, or adjacent to, a secured area that 
affects security;
    (iii) Measures used to perform the access control functions required 
under Sec.  1542.201(b)(1);
    (iv) Procedures to control movement within the secured area, 
including identification media required under Sec.  1542.201(b)(3); and
    (v) A description of the notification signs required under Sec.  
1542.201(b)(6).
    (4) A description of the AOA, including--
    (i) A description and map detailing boundaries, and pertinent 
features;
    (ii) Each activity or entity on, or adjacent to, an AOA that affects 
security;
    (iii) Measures used to perform the access control functions required 
under Sec.  1542.203(b)(1);
    (iv) Measures to control movement within the AOA, including 
identification media as appropriate; and
    (v) A description of the notification signs required under Sec.  
1542.203(b)(4).
    (5) A description of the SIDA's, including--
    (i) A description and map detailing boundaries and pertinent 
features; and
    (ii) Each activity or entity on, or adjacent to, a SIDA.
    (6) A description of the sterile areas, including--
    (i) A diagram with dimensions detailing boundaries and pertinent 
features;
    (ii) Access controls to be used when the passenger-screening 
checkpoint is non-operational and the entity responsible for that access 
control; and
    (iii) Measures used to control access as specified in Sec.  
1542.207.
    (7) Procedures used to comply with Sec.  1542.209 regarding 
fingerprint-based criminal history records checks.
    (8) A description of the personnel identification systems as 
described in Sec.  1542.211.
    (9) Escort procedures in accordance with Sec.  1542.211(e).
    (10) Challenge procedures in accordance with Sec.  1542.211(d).
    (11) Training programs required under Sec. Sec.  1542.213 and 
1542.217(c)(2), if applicable.
    (12) A description of law enforcement support used to comply with 
Sec.  1542.215(a).
    (13) A system for maintaining the records described in Sec.  
1542.221.
    (14) The procedures and a description of facilities and equipment 
used to support TSA inspection of individuals and property, and aircraft 
operator or foreign air carrier screening functions of parts 1544 and 
1546 of this chapter.
    (15) A contingency plan required under Sec.  1542.301.
    (16) Procedures for the distribution, storage, and disposal of 
security programs, Security Directives, Information Circulars, 
implementing instructions, and, as appropriate, classified information.
    (17) Procedures for posting of public advisories as specified in 
Sec.  1542.305.
    (18) Incident management procedures used to comply with Sec.  
1542.307.
    (19) Alternate security procedures, if any, that the airport 
operator intends to use in the event of natural disasters, and other 
emergency or unusual conditions.
    (20) Each exclusive area agreement as specified in Sec.  1542.111.
    (21) Each airport tenant security program as specified in Sec.  
1542.113.
    (b) Supporting program. Except as otherwise approved by TSA, each 
airport regularly serving operations of an aircraft operator or foreign 
air carrier described in Sec.  1544.101(a)(2) or (f), or Sec.  
1546.101(b) or (c) of this chapter, must include in its security program 
a description of the following:
    (1) Name, means of contact, duties, and training requirements of the 
ASC, as required under Sec.  1542.3.
    (2) A description of the law enforcement support used to comply with 
Sec.  1542.215(a).
    (3) Training program for law enforcement personnel required under 
Sec.  1542.217(c)(2), if applicable.
    (4) A system for maintaining the records described in Sec.  
1542.221.

[[Page 329]]

    (5) The contingency plan required under Sec.  1542.301.
    (6) Procedures for the distribution, storage, and disposal of 
security programs, Security Directives, Information Circulars, 
implementing instructions, and, as appropriate, classified information.
    (7) Procedures for public advisories as specified in Sec.  1542.305.
    (8) Incident management procedures used to comply with Sec.  
1542.307.
    (c) Partial program. Except as otherwise approved by TSA, each 
airport regularly serving operations of an aircraft operator or foreign 
air carrier described in Sec.  1544.101(b) or Sec.  1546.101(d) of this 
chapter, must include in its security program a description of the 
following:
    (1) Name, means of contact, duties, and training requirements of the 
ASC as required under Sec.  1542.3.
    (2) A description of the law enforcement support used to comply with 
Sec.  1542.215(b).
    (3) Training program for law enforcement personnel required under 
Sec.  1542.217(c)(2), if applicable.
    (4) A system for maintaining the records described in Sec.  
1542.221.
    (5) Procedures for the distribution, storage, and disposal of 
security programs, Security Directives, Information Circulars, 
implementing instructions, and, as appropriate, classified information.
    (6) Procedures for public advisories as specified in Sec.  1542.305.
    (7) Incident management procedures used to comply with Sec.  
1542.307.
    (d) Use of appendices. The airport operator may comply with 
paragraphs (a), (b), and (c) of this section by including in its 
security program, as an appendix, any document that contains the 
information required by paragraphs (a), (b), and (c) of this section. 
The appendix must be referenced in the corresponding section(s) of the 
security program.



Sec.  1542.105  Approval and amendments.

    (a) Initial approval of security program. Unless otherwise 
authorized by the designated official, each airport operator required to 
have a security program under this part must submit its initial proposed 
security program to the designated official for approval at least 90 
days before the date any aircraft operator or foreign air carrier 
required to have a security program under part 1544 or part 1546 of this 
chapter is expected to begin operations. Such requests will be processed 
as follows:
    (1) The designated official, within 30 days after receiving the 
proposed security program, will either approve the program or give the 
airport operator written notice to modify the program to comply with the 
applicable requirements of this part.
    (2) The airport operator may either submit a modified security 
program to the designated official for approval, or petition the 
Administrator to reconsider the notice to modify within 30 days of 
receiving a notice to modify. A petition for reconsideration must be 
filed with the designated official.
    (3) The designated official, upon receipt of a petition for 
reconsideration, either amends or withdraws the notice, or transmits the 
petition, together with any pertinent information, to the Administrator 
for reconsideration. The Administrator disposes of the petition within 
30 days of receipt by either directing the designated official to 
withdraw or amend the notice to modify, or by affirming the notice to 
modify.
    (b) Amendment requested by an airport operator. Except as provided 
in Sec.  1542.103(c), an airport operator may submit a request to the 
designated official to amend its security program, as follows:
    (1) The request for an amendment must be filed with the designated 
official at least 45 days before the date it proposes for the amendment 
to become effective, unless a shorter period is allowed by the 
designated official.
    (2) Within 30 days after receiving a proposed amendment, the 
designated official, in writing, either approves or denies the request 
to amend.
    (3) An amendment to a security program may be approved if the 
designated official determines that safety and the public interest will 
allow it, and the proposed amendment provides the level of security 
required under this part.

[[Page 330]]

    (4) Within 30 days after receiving a denial, the airport operator 
may petition the Administrator to reconsider the denial.
    (5) Upon receipt of a petition for reconsideration, the designated 
official either approves the request to amend or transmits the petition 
within 30 days of receipt, together with any pertinent information, to 
the Administrator for reconsideration. The Administrator disposes of the 
petition within 30 days of receipt by either directing the designated 
official to approve the amendment or affirming the denial.
    (c) Amendment by TSA. If safety and the public interest require an 
amendment, the designated official may amend a security program as 
follows:
    (1) The designated official sends to the airport operator a notice, 
in writing, of the proposed amendment, fixing a period of not less than 
30 days within which the airport operator may submit written 
information, views, and arguments on the amendment.
    (2) After considering all relevant material, the designated official 
notifies the airport operator of any amendment adopted or rescinds the 
notice. If the amendment is adopted, it becomes effective not less than 
30 days after the airport operator receives the notice of amendment, 
unless the airport operator petitions the Administrator to reconsider no 
later than 15 days before the effective date of the amendment. The 
airport operator must send the petition for reconsideration to the 
designated official. A timely petition for reconsideration stays the 
effective date of the amendment.
    (3) Upon receipt of a petition for reconsideration, the designated 
official either amends or withdraws the notice, or transmits the 
petition, together with any pertinent information to the Administrator 
for reconsideration. The Administrator disposes of the petition within 
30 days of receipt by either directing the designated official to 
withdraw or amend the amendment, or by affirming the amendment.
    (d) Emergency amendments. Notwithstanding paragraph (c) of this 
section, if the designated official finds that there is an emergency 
requiring immediate action with respect to safety and security in air 
transportation or in air commerce that makes procedures in this section 
contrary to the public interest, the designated official may issue an 
amendment, effective without stay on the date the airport operator 
receives the notice of it. In such a case, the designated official must 
incorporate in the notice a brief statement of the reasons and findings 
for the amendment to be adopted. The airport operator may file a 
petition for reconsideration under paragraph (c) of this section; 
however, this does not stay the effective date of the emergency 
amendment.



Sec.  1542.107  Changed conditions affecting security.

    (a) After approval of the security program, each airport operator 
must notify TSA when changes have occurred to the--
    (1) Measures, training, area descriptions, or staffing, described in 
the security program;
    (2) Operations of an aircraft operator or foreign air carrier that 
would require modifications to the security program as required under 
Sec.  1542.103; or
    (3) Layout or physical structure of any area under the control of 
the airport operator, airport tenant, aircraft operator, or foreign air 
carrier used to support the screening process, access, presence, or 
movement control functions required under part 1542, 1544, or 1546 of 
this chapter.
    (b) Each airport operator must notify TSA no more than 6 hours after 
the discovery of any changed condition described in paragraph (a) of 
this section, or within the time specified in its security program, of 
the discovery of any changed condition described in paragraph (a) of 
this section. The airport operator must inform TSA of each interim 
measure being taken to maintain adequate security until an appropriate 
amendment to the security program is approved. Each interim measure must 
be acceptable to TSA.
    (c) For changed conditions expected to be less than 60 days 
duration, each airport operator must forward the information required in 
paragraph (b) of this section in writing to TSA within 72 hours of the 
original notification of

[[Page 331]]

the change condition(s). TSA will notify the airport operator of the 
disposition of the notification in writing. If approved by TSA, this 
written notification becomes a part of the airport security program for 
the duration of the changed condition(s).
    (d) For changed conditions expected to be 60 days or more duration, 
each airport operator must forward the information required in paragraph 
(b) of this section in the form of a proposed amendment to the airport 
operator's security program, as required under Sec.  1542.105. The 
request for an amendment must be made within 30 days of the discovery of 
the changed condition(s). TSA will respond to the request in accordance 
with Sec.  1542.105.



Sec.  1542.109  Alternate means of compliance.

    If in TSA's judgment, the overall safety and security of the 
airport, and aircraft operator or foreign air carrier operations are not 
diminished, TSA may approve a security program that provides for the use 
of alternate measures. Such a program may be considered only for an 
operator of an airport at which service by aircraft operators or foreign 
air carriers under part 1544 or 1546 of this chapter is determined by 
TSA to be seasonal or infrequent.



Sec.  1542.111  Exclusive area agreements.

    (a) TSA may approve an amendment to an airport security program 
under which an aircraft operator or foreign air carrier that has a 
security program under part 1544 or 1546 of this chapter assumes 
responsibility for specified security measures for all or portions of 
the secured area, AOA, or SIDA, including access points, as provided in 
Sec.  1542.201, Sec.  1542.203, or Sec.  1542.205. The assumption of 
responsibility must be exclusive to one aircraft operator or foreign air 
carrier, and shared responsibility among aircraft operators or foreign 
air carriers is not permitted for an exclusive area.
    (b) An exclusive area agreement must be in writing, signed by the 
airport operator and aircraft operator or foreign air carrier, and 
maintained in the airport security program. This agreement must contain 
the following:
    (1) A description, a map, and, where appropriate, a diagram of the 
boundaries and pertinent features of each area, including individual 
access points, over which the aircraft operator or foreign air carrier 
will exercise exclusive security responsibility.
    (2) A description of the measures used by the aircraft operator or 
foreign air carrier to comply with Sec.  1542.201, Sec.  1542.203, or 
Sec.  1542.205, as appropriate.
    (3) Procedures by which the aircraft operator or foreign air carrier 
will immediately notify the airport operator and provide for alternative 
security measures when there are changed conditions as described in 
Sec.  1542.103(a).
    (c) Any exclusive area agreements in effect on November 14, 2001, 
must meet the requirements of this section and Sec.  1544.227 no later 
than November 14, 2002.



Sec.  1542.113  Airport tenant security programs.

    (a) TSA may approve an airport tenant security program as follows:
    (1) The tenant must assume responsibility for specified security 
measures of the secured area, AOA, or SIDA as provided in Sec. Sec.  
1542.201, 1542.203, and 1542.205.
    (2) The tenant may not assume responsibility for law enforcement 
support under Sec.  1542.215.
    (3) The tenant must assume the responsibility within the tenant's 
leased areas or areas designated for the tenant's exclusive use. A 
tenant may not assume responsibility under a tenant security program for 
the airport passenger terminal.
    (4) Responsibility must be exclusive to one tenant, and shared 
responsibility among tenants is not permitted.
    (5) TSA must find that the tenant is able and willing to carry out 
the airport tenant security program.
    (b) An airport tenant security program must be in writing, signed by 
the airport operator and the airport tenant, and maintained in the 
airport security program. The airport tenant security program must 
include the following:
    (1) A description and a map of the boundaries and pertinent features 
of

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each area over which the airport tenant will exercise security 
responsibilities.
    (2) A description of the measures the airport tenant has assumed.
    (3) Measures by which the airport operator will monitor and audit 
the tenant's compliance with the security program.
    (4) Monetary and other penalties to which the tenant may be subject 
if it fails to carry out the airport tenant security program.
    (5) Circumstances under which the airport operator will terminate 
the airport tenant security program for cause.
    (6) A provision acknowledging that the tenant is subject to 
inspection by TSA in accordance with Sec.  1542.5.
    (7) A provision acknowledging that individuals who carry out the 
tenant security program are contracted to or acting for the airport 
operator and are required to protect sensitive information in accordance 
with part 1520 of this chapter, and may be subject to civil penalties 
for failing to protect sensitive security information.
    (8) Procedures by which the tenant will immediately notify the 
airport operator of and provide for alternative security measures for 
changed conditions as described in Sec.  1542.103(a).
    (c) If TSA has approved an airport tenant security program, the 
airport operator may not be found to be in violation of a requirement of 
this part in any case in which the airport operator demonstrates that:
    (1) The tenant or an employee, permittee, or invitee of the tenant, 
is responsible for such violation; and
    (2) The airport operator has complied with all measures in its 
security program to ensure the tenant has complied with the airport 
tenant security program.
    (d) TSA may amend or terminate an airport tenant security program in 
accordance with Sec.  1542.105.



                          Subpart C_Operations



Sec.  1542.201  Security of the secured area.

    (a) Each airport operator required to have a security program under 
Sec.  1542.103(a) must establish at least one secured area.
    (b) Each airport operator required to establish a secured area must 
prevent and detect the unauthorized entry, presence, and movement of 
individuals and ground vehicles into and within the secured area by 
doing the following:
    (1) Establish and carry out measures for controlling entry to 
secured areas of the airport in accordance with Sec.  1542.207.
    (2) Provide for detection of, and response to, each unauthorized 
presence or movement in, or attempted entry to, the secured area by an 
individual whose access is not authorized in accordance with its 
security program.
    (3) Establish and carry out a personnel identification system 
described under Sec.  1542.211.
    (4) Subject each individual to employment history verification as 
described in Sec.  1542.209 before authorizing unescorted access to a 
secured area.
    (5) Train each individual before granting unescorted access to the 
secured area, as required in Sec.  1542.213(b).
    (6) Post signs at secured area access points and on the perimeter 
that provide warning of the prohibition against unauthorized entry. 
Signs must be posted by each airport operator in accordance with its 
security program not later than November 14, 2003.



Sec.  1542.203  Security of the air operations area (AOA).

    (a) Each airport operator required to have a security program under 
Sec.  1542.103(a) must establish an AOA, unless the entire area is 
designated as a secured area.
    (b) Each airport operator required to establish an AOA must prevent 
and detect the unauthorized entry, presence, and movement of individuals 
and ground vehicles into or within the AOA by doing the following:
    (1) Establish and carry out measures for controlling entry to the 
AOA of the airport in accordance with Sec.  1542.207.
    (2) Provide for detection of, and response to, each unauthorized 
presence or movement in, or attempted entry to, the AOA by an individual 
whose access is not authorized in accordance with its security program.

[[Page 333]]

    (3) Provide security information as described in Sec.  1542.213(c) 
to each individual with unescorted access to the AOA.
    (4) Post signs on AOA access points and perimeters that provide 
warning of the prohibition against unauthorized entry to the AOA. Signs 
must be posted by each airport operator in accordance with its security 
program not later than November 14, 2003.
    (5) If approved by TSA, the airport operator may designate all or 
portions of its AOA as a SIDA, or may use another personnel 
identification system, as part of its means of meeting the requirements 
of this section. If it uses another personnel identification system, the 
media must be clearly distinguishable from those used in the secured 
area and SIDA.



Sec.  1542.205  Security of the security identification display area (SIDA).

    (a) Each airport operator required to have a complete program under 
Sec.  1542.103(a) must establish at least one SIDA, as follows:
    (1) Each secured area must be a SIDA.
    (2) Each part of the air operations area that is regularly used to 
load cargo on, or unload cargo from, an aircraft that is operated under 
a full program or a full all-cargo program as provided in Sec.  
1544.101(a) or (h) of this chapter, or a foreign air carrier under a 
security program as provided in Sec.  1546.101(a), (b), or (e), must be 
a SIDA.
    (3) Each area on an airport where cargo is present after an aircraft 
operator operating under a full program or a full all-cargo program 
under Sec.  1544.101(a) or (h) of this chapter, or a foreign air carrier 
operating under a security program under Sec.  1546.101(a), (b), or (e) 
of this chapter, or an indirect air carrier, accepts it must be a SIDA. 
This includes areas such as: Cargo facilities; loading and unloading 
vehicle docks; and areas where an aircraft operator, foreign air 
carrier, or indirect air carrier sorts, stores, stages, consolidates, 
processes, screens, or transfers cargo.
    (4) Other areas of the airport may be SIDAs.
    (b) Each airport operator required to establish a SIDA must 
establish and carry out measures to prevent the unauthorized presence 
and movement of individuals in the SIDA and must do the following:
    (1) Establish and carry out a personnel identification system 
described under Sec.  1542.211.
    (2) Subject each individual to a criminal history records check as 
described in Sec.  1542.209 before authorizing unescorted access to the 
SIDA.
    (3) Train each individual before granting unescorted access to the 
SIDA, as required in Sec.  1542.213(b).
    (c) An airport operator that is not required to have a complete 
program under Sec.  1542.103(a) is not required to establish a SIDA 
under this section.

[67 FR 8355, Feb. 22, 2002, as amended at 71 FR 30509, May 26, 2006]



Sec.  1542.207  Access control systems.

    (a) Secured area. Except as provided in paragraph (b) of this 
section, the measures for controlling entry to the secured area required 
under Sec.  1542.201(b)(1) must--
    (1) Ensure that only those individuals authorized to have unescorted 
access to the secured area are able to gain entry;
    (2) Ensure that an individual is immediately denied entry to a 
secured area when that person's access authority for that area is 
withdrawn; and
    (3) Provide a means to differentiate between individuals authorized 
to have access to an entire secured area and individuals authorized 
access to only a particular portion of a secured area.
    (b) Alternative systems. TSA may approve an amendment to a security 
program that provides alternative measures that provide an overall level 
of security equal to that which would be provided by the measures 
described in paragraph (a) of this section.
    (c) Air operations area. The measures for controlling entry to the 
AOA required under Sec.  1542.203(b)(1) must incorporate accountability 
procedures to maintain their integrity.
    (d) Secondary access media. An airport operator may issue a second 
access medium to an individual who has unescorted access to secured 
areas or the AOA, but is temporarily not in possession of the original 
access medium,

[[Page 334]]

if the airport operator follows measures and procedures in the security 
program that--
    (1) Verifies the authorization of the individual to have unescorted 
access to secured areas or AOAs;
    (2) Restricts the time period of entry with the second access 
medium;
    (3) Retrieves the second access medium when expired;
    (4) Deactivates or invalidates the original access medium until the 
individual returns the second access medium; and
    (5) Provides that any second access media that is also used as 
identification media meet the criteria of Sec.  1542.211(b).



Sec.  1542.209  Fingerprint-based criminal history records checks (CHRC).

    (a) Scope. The following persons are within the scope of this 
section--
    (1) Each airport operator and airport user.
    (2) Each individual currently having unescorted access to a SIDA, 
and each individual with authority to authorize others to have 
unescorted access to a SIDA (referred to as unescorted access 
authority).
    (3) Each individual seeking unescorted access authority.
    (4) Each airport user and aircraft operator making a certification 
to an airport operator pursuant to paragraph (n) of this section, or 14 
CFR 108.31(n) in effect prior to November 14, 2001 (see 14 CFR Parts 60 
to 139 revised as of January 1, 2001). An airport user, for the purposes 
of this section only, is any person other than an aircraft operator 
subject to Sec.  1544.229 of this chapter making a certification under 
this section.
    (b) Individuals seeking unescorted access authority. Except as 
provided in paragraph (m) of this section, each airport operator must 
ensure that no individual is granted unescorted access authority unless 
the individual has undergone a fingerprint-based CHRC that does not 
disclose that he or she has a disqualifying criminal offense, as 
described in paragraph (d) of this section.
    (c) Individuals who have not had a CHRC. (1) Except as provided in 
paragraph (m) of this section, each airport operator must ensure that 
after December 6, 2002, no individual retains unescorted access 
authority, unless the airport operator has obtained and submitted a 
fingerprint under this part.
    (2) When a CHRC discloses a disqualifying criminal offense for which 
the conviction or finding of not guilty by reason of insanity was on or 
after December 6, 1991, the airport operator must immediately suspend 
that individual's authority.
    (d) Disqualifying criminal offenses. An individual has a 
disqualifying criminal offense if the individual has been convicted, or 
found not guilty of by reason of insanity, of any of the disqualifying 
crimes listed in this paragraph (d) in any jurisdiction during the 10 
years before the date of the individual's application for unescorted 
access authority, or while the individual has unescorted access 
authority. The disqualifying criminal offenses are as follows--
    (1) Forgery of certificates, false marking of aircraft, and other 
aircraft registration violation; 49 U.S.C. 46306.
    (2) Interference with air navigation; 49 U.S.C. 46308.
    (3) Improper transportation of a hazardous material; 49 U.S.C. 
46312.
    (4) Aircraft piracy; 49 U.S.C. 46502.
    (5) Interference with flight crew members or flight attendants; 49 
U.S.C. 46504.
    (6) Commission of certain crimes aboard aircraft in flight; 49 
U.S.C. 46506.
    (7) Carrying a weapon or explosive aboard aircraft; 49 U.S.C. 46505.
    (8) Conveying false information and threats; 49 U.S.C. 46507.
    (9) Aircraft piracy outside the special aircraft jurisdiction of the 
United States; 49 U.S.C. 46502(b).
    (10) Lighting violations involving transporting controlled 
substances; 49 U.S.C. 46315.
    (11) Unlawful entry into an aircraft or airport area that serves air 
carriers or foreign air carriers contrary to established security 
requirements; 49 U.S.C. 46314.
    (12) Destruction of an aircraft or aircraft facility; 18 U.S.C. 32.
    (13) Murder.
    (14) Assault with intent to murder.
    (15) Espionage.
    (16) Sedition.
    (17) Kidnapping or hostage taking.

[[Page 335]]

    (18) Treason.
    (19) Rape or aggravated sexual abuse.
    (20) Unlawful possession, use, sale, distribution, or manufacture of 
an explosive or weapon.
    (21) Extortion.
    (22) Armed or felony unarmed robbery.
    (23) Distribution of, or intent to distribute, a controlled 
substance.
    (24) Felony arson.
    (25) Felony involving a threat.
    (26) Felony involving--
    (i) Willful destruction of property;
    (ii) Importation or manufacture of a controlled substance;
    (iii) Burglary;
    (iv) Theft;
    (v) Dishonesty, fraud, or misrepresentation;
    (vi) Possession or distribution of stolen property;
    (vii) Aggravated assault;
    (viii) Bribery; or
    (ix) Illegal possession of a controlled substance punishable by a 
maximum term of imprisonment of more than 1 year.
    (27) Violence at international airports; 18 U.S.C. 37.
    (28) Conspiracy or attempt to commit any of the criminal acts listed 
in this paragraph (d).
    (e) Fingerprint application and processing. (1) At the time of 
fingerprinting, the airport operator must provide the individual to be 
fingerprinted a fingerprint application that includes only the 
following--
    (i) The disqualifying criminal offenses described in paragraph (d) 
of this section.
    (ii) A statement that the individual signing the application does 
not have a disqualifying criminal offense.
    (iii) A statement informing the individual that Federal regulations 
under 49 CFR 1542.209 (l) impose a continuing obligation to disclose to 
the airport operator within 24 hours if he or she is convicted of any 
disqualifying criminal offense that occurs while he or she has 
unescorted access authority. After February 17, 2002, the airport 
operator may use statements that have already been printed referring to 
14 CFR 107.209 until stocks of such statements are used up.
    (iv) A statement reading, ``The information I have provided on this 
application is true, complete, and correct to the best of my knowledge 
and belief and is provided in good faith. I understand that a knowing 
and willful false statement on this application can be punished by fine 
or imprisonment or both. (See section 1001 of Title 18 United States 
Code.)''
    (v) A line for the printed name of the individual.
    (vi) A line for the individual's signature and date of signature.
    (2) Each individual must complete and sign the application prior to 
submitting his or her fingerprints.
    (3) The airport operator must verify the identity of the individual 
through two forms of identification prior to fingerprinting, and ensure 
that the printed name on the fingerprint application is legible. At 
least one of the two forms of identification must have been issued by a 
government authority, and at least one must include a photo.
    (4) The airport operator must advise the individual that:
    (i) A copy of the criminal record received from the FBI will be 
provided to the individual, if requested by the individual in writing; 
and
    (ii) The ASC is the individual's point of contact if he or she has 
questions about the results of the CHRC.
    (5) The airport operator must collect, control, and process one set 
of legible and classifiable fingerprints under direct observation of the 
airport operator or a law enforcement officer.
    (6) Fingerprints may be obtained and processed electronically, or 
recorded on fingerprint cards approved by the FBI and distributed by TSA 
for that purpose.
    (7) The fingerprint submission must be forwarded to TSA in the 
manner specified by TSA.
    (f) Fingerprinting fees. Airport operators must pay for all 
fingerprints in a form and manner approved by TSA. The payment must be 
made at the designated rate (available from the local TSA security 
office) for each set of fingerprints submitted. Information about 
payment options is available though the designated TSA headquarters 
point of contact. Individual personal checks are not acceptable.
    (g) Determination of arrest status. (1) When a CHRC on an individual 
seeking

[[Page 336]]

unescorted access authority discloses an arrest for any disqualifying 
criminal offense listed in paragraph (d) of this section without 
indicating a disposition, the airport operator must determine, after 
investigation, that the arrest did not result in a disqualifying offense 
before granting that authority. If there is no disposition, or if the 
disposition did not result in a conviction or in a finding of not guilty 
by reason of insanity of one of the offenses listed in paragraph (d) of 
this section, the individual is not disqualified under this section.
    (2) When a CHRC on an individual with unescorted access authority 
discloses an arrest for any disqualifying criminal offense without 
indicating a disposition, the airport operator must suspend the 
individual's unescorted access authority not later than 45 days after 
obtaining the CHRC unless the airport operator determines, after 
investigation, that the arrest did not result in a disqualifying 
criminal offense. If there is no disposition, or if the disposition did 
not result in a conviction or in a finding of not guilty by reason of 
insanity of one of the offenses listed in paragraph (d) of this section, 
the individual is not disqualified under this section.
    (3) The airport operator may only make the determinations required 
in paragraphs (g)(1) and (g)(2) of this section for individuals for whom 
it is issuing, or has issued, unescorted access authority, and who are 
not covered by a certification from an aircraft operator under paragraph 
(n) of this section. The airport operator may not make determinations 
for individuals described in Sec.  1544.229 of this chapter.
    (h) Correction of FBI records and notification of disqualification. 
(1) Before making a final decision to deny unescorted access authority 
to an individual described in paragraph (b) of this section, the airport 
operator must advise him or her that the FBI criminal record discloses 
information that would disqualify him or her from receiving or retaining 
unescorted access authority and provide the individual with a copy of 
the FBI record if he or she requests it.
    (2) The airport operator must notify an individual that a final 
decision has been made to grant or deny unescorted access authority.
    (3) Immediately following the suspension of unescorted access 
authority of an individual, the airport operator must advise him or her 
that the FBI criminal record discloses information that disqualifies him 
or her from retaining unescorted access authority and provide the 
individual with a copy of the FBI record if he or she requests it.
    (i) Corrective action by the individual. The individual may contact 
the local jurisdiction responsible for the information and the FBI to 
complete or correct the information contained in his or her record, 
subject to the following conditions--
    (1) For an individual seeking unescorted access authority on or 
after December 6, 2001, the following applies:
    (i) Within 30 days after being advised that the criminal record 
received from the FBI discloses a disqualifying criminal offense, the 
individual must notify the airport operator in writing of his or her 
intent to correct any information he or she believes to be inaccurate. 
The airport operator must obtain a copy, or accept a copy from the 
individual, of the revised FBI record, or a certified true copy of the 
information from the appropriate court, prior to granting unescorted 
access authority.
    (ii) If no notification, as described in paragraph (h)(1) of this 
section, is received within 30 days, the airport operator may make a 
final determination to deny unescorted access authority.
    (2) For an individual with unescorted access authority before 
December 6, 2001, the following applies: Within 30 days after being 
advised of suspension because the criminal record received from the FBI 
discloses a disqualifying criminal offense, the individual must notify 
the airport operator in writing of his or her intent to correct any 
information he or she believes to be inaccurate. The airport operator 
must obtain a copy, or accept a copy from the individual, of the revised 
FBI record, or a certified true copy of the information from the 
appropriate court, prior to reinstating unescorted access authority.
    (j) Limits on dissemination of results. Criminal record information 
provided by the FBI may be used only to carry

[[Page 337]]

out this section and Sec.  1544.229 of this chapter. No person may 
disseminate the results of a CHRC to anyone other than:
    (1) The individual to whom the record pertains, or that individual's 
authorized representative.
    (2) Officials of other airport operators who are determining whether 
to grant unescorted access to the individual under this part.
    (3) Aircraft operators who are determining whether to grant 
unescorted access to the individual or authorize the individual to 
perform screening functions under part 1544 of this chapter.
    (4) Others designated by TSA.
    (k) Recordkeeping. The airport operator must maintain the following 
information:
    (1) Investigations conducted before December 6, 2001. The airport 
operator must maintain and control the access or employment history 
investigation files, including the criminal history records results 
portion, or the appropriate certifications, for investigations conducted 
before December 6, 2001.
    (2) Fingerprint application process on or after December 6, 2001. 
Except when the airport operator has received a certification under 
paragraph (n) of this section, the airport operator must physically 
maintain, control, and, as appropriate, destroy the fingerprint 
application and the criminal record. Only direct airport operator 
employees may carry out the responsibility for maintaining, controlling, 
and destroying criminal records.
    (3) Certification on or after December 6, 2001. The airport operator 
must maintain the certifications provided under paragraph (n) of this 
section.
    (4) Protection of records--all investigations. The records required 
by this section must be maintained in a manner that is acceptable to TSA 
and in a manner that protects the confidentiality of the individual.
    (5) Duration--all investigations. The records identified in this 
section with regard to an individual must be maintained until 180 days 
after the termination of the individual's unescorted access authority. 
When files are no longer maintained, the criminal record must be 
destroyed.
    (l) Continuing responsibilities. (1) Each individual with unescorted 
access authority on December 6, 2001, who had a disqualifying criminal 
offense in paragraph (d) of this section on or after December 6, 1991, 
must, by January 7, 2002, report the conviction to the airport operator 
and surrender the SIDA access medium to the issuer.
    (2) Each individual with unescorted access authority who has a 
disqualifying criminal offense must report the offense to the airport 
operator and surrender the SIDA access medium to the issuer within 24 
hours of the conviction or the finding of not guilty by reason of 
insanity.
    (3) If information becomes available to the airport operator or the 
airport user indicating that an individual with unescorted access 
authority has a disqualifying criminal offense, the airport operator 
must determine the status of the conviction. If a disqualifying offense 
is confirmed the airport operator must immediately revoke any unescorted 
access authority.
    (m) Exceptions. Notwithstanding the requirements of this section, an 
airport operator must authorize the following individuals to have 
unescorted access authority:
    (1) An employee of the Federal, state, or local government 
(including a law enforcement officer) who, as a condition of employment, 
has been subjected to an employment investigation that includes a 
criminal records check.
    (2) Notwithstanding the requirements of this section, an airport 
operator may authorize the following individuals to have unescorted 
access authority:
    (i) An individual who has been continuously employed in a position 
requiring unescorted access authority by another airport operator, 
airport user, or aircraft operator, or contractor to such an entity, 
provided the grant for his or her unescorted access authority was based 
upon a fingerprint-based CHRC through TSA or FAA.
    (ii) An individual who has been continuously employed by an aircraft 
operator or aircraft operator contractor, in a position with authority 
to perform screening functions, provided the grant for his or her 
authority to perform screening functions was based upon a

[[Page 338]]

fingerprint-based CHRC through TSA or FAA.
    (n) Certifications by aircraft operators. An airport operator is in 
compliance with its obligation under paragraph (b) or (c) of this 
section when the airport operator accepts, for each individual seeking 
unescorted access authority, certification from an aircraft operator 
subject to part 1544 of this chapter indicating it has complied with 
Sec.  1544.229 of this chapter for the aircraft operator's employees and 
contractors seeking unescorted access authority. If the airport operator 
accepts a certification from the aircraft operator, the airport operator 
may not require the aircraft operator to provide a copy of the CHRC.
    (o) Airport operator responsibility. The airport operator must--
    (1) Designate the ASC, in the security program, or a direct employee 
if the ASC is not a direct employee, to be responsible for maintaining, 
controlling, and destroying the criminal record files when their 
maintenance is no longer required by paragraph (k) of this section.
    (2) Designate the ASC, in the security program, to serve as the 
contact to receive notification from individuals applying for unescorted 
access authority of their intent to seek correction of their FBI 
criminal record.
    (3) Audit the employment history investigations performed by the 
airport operator in accordance with this section and 14 CFR 107.31 in 
effect prior to November 14, 2001 (see 14 CFR Parts 60 through 139 
revised as of January 1, 2001), and those investigations conducted by 
the airport users who provided certification to the airport operator. 
The audit program must be set forth in the airport security program.
    (p) Airport user responsibility. (1) The airport user must report to 
the airport operator information, as it becomes available, that 
indicates an individual with unescorted access authority may have a 
disqualifying criminal offense.
    (2) The airport user must maintain and control, in compliance with 
paragraph (k) of this section, the employment history investigation 
files for investigations conducted before December 6, 2001, unless the 
airport operator decides to maintain and control the employment history 
investigation file.
    (3) The airport user must provide the airport operator with either 
the name or title of the individual acting as custodian of the files 
described in this paragraph (p), the address of the location where the 
files are maintained, and the phone number of that location. The airport 
user must provide the airport operator and TSA with access to these 
files.



Sec.  1542.211  Identification systems.

    (a) Personnel identification system. The personnel identification 
system under Sec. Sec.  1542.201(b)(3) and 1542.205(b)(1) must include 
the following:
    (1) Personnel identification media that--
    (i) Convey a full-face image, full name, employer, and 
identification number of the individual to whom the identification 
medium is issued;
    (ii) Indicate clearly the scope of the individual's access and 
movement privileges;
    (iii) Indicate clearly an expiration date; and
    (iv) Are of sufficient size and appearance as to be readily 
observable for challenge purposes.
    (2) Procedures to ensure that each individual in the secured area or 
SIDA continuously displays the identification medium issued to that 
individual on the outermost garment above waist level, or is under 
escort.
    (3) Procedures to ensure accountability through the following:
    (i) Retrieving expired identification media and media of persons who 
no longer have unescorted access authority.
    (ii) Reporting lost or stolen identification media.
    (iii) Securing unissued identification media stock and supplies.
    (iv) Auditing the system at a minimum of once a year or sooner, as 
necessary, to ensure the integrity and accountability of all 
identification media.
    (v) As specified in the security program, revalidate the 
identification system or reissue identification media if a

[[Page 339]]

portion of all issued, unexpired identification media are lost, stolen, 
or otherwise unaccounted for, including identification media that are 
combined with access media.
    (vi) Ensure that only one identification medium is issued to an 
individual at a time, except for personnel who are employed with more 
than one company and require additional identification media to carry 
out employment duties. A replacement identification medium may only be 
issued if an individual declares in writing that the medium has been 
lost, stolen, or destroyed.
    (b) Temporary identification media. Each airport operator may issue 
personnel identification media in accordance with its security program 
to persons whose duties are expected to be temporary. The temporary 
identification media system must include procedures and methods to--
    (1) Retrieve temporary identification media;
    (2) Authorize the use of a temporary media for a limited time only;
    (3) Ensure that temporary media are distinct from other 
identification media and clearly display an expiration date; and
    (4) Ensure that any identification media also being used as an 
access media meet the criteria of Sec.  1542.207(d).
    (c) Airport-approved identification media. TSA may approve an 
amendment to the airport security program that provides for the use of 
identification media meeting the criteria of this section that are 
issued by entities other than the airport operator, as described in the 
security program.
    (d) Challenge program. Each airport operator must establish and 
carry out a challenge program that requires each individual who has 
authorized unescorted access to secured areas and SIDA's to ascertain 
the authority of any individual who is not displaying an identification 
medium authorizing the individual to be present in the area. The 
challenge program must include procedures to challenge individuals not 
displaying airport approved identification media. The procedure must--
    (1) Apply uniformly in secured areas, SIDAs, and exclusive areas;
    (2) Describe how to challenge an individual directly or report any 
individual not visibly displaying an authorized identification medium, 
including procedures to notify the appropriate authority; and
    (3) Describe support of challenge procedures, including law 
enforcement and any other responses to reports of individuals not 
displaying authorized identification media.
    (e) Escorting. Each airport operator must establish and implement 
procedures for escorting individuals who do not have unescorted access 
authority to a secured area or SIDA that--
    (1) Ensure that only individuals with unescorted access authority 
are permitted to escort;
    (2) Ensure that the escorted individuals are continuously 
accompanied or monitored while within the secured area or SIDA in a 
manner sufficient to identify whether the escorted individual is engaged 
in activities other than those for which escorted access was granted, 
and to take action in accordance with the airport security program;
    (3) Identify what action is to be taken by the escort, or other 
authorized individual, should individuals under escort engage in 
activities other than those for which access was granted;
    (4) Prescribe law enforcement support for escort procedures; and
    (5) Ensure that individuals escorted into a sterile area without 
being screened under Sec.  1544.201 of this chapter remain under escort 
until they exit the sterile area, or submit to screening pursuant to 
Sec.  1544.201 or Sec.  1546.201 of this chapter.
    (f) Effective date. The identification systems described in this 
section must be implemented by each airport operator not later than 
November 14, 2003.



Sec.  1542.213  Training.

    (a) Each airport operator must ensure that individuals performing 
security-related functions for the airport operator are briefed on the 
provisions of this part, Security Directives, and Information Circulars, 
and the security program, to the extent that such individuals need to 
know in order to perform their duties.

[[Page 340]]

    (b) An airport operator may not authorize any individual unescorted 
access to the secured area or SIDA, except as provided in Sec.  1542.5, 
unless that individual has successfully completed training in accordance 
with TSA-approved curriculum specified in the security program. This 
curriculum must detail the methods of instruction, provide attendees 
with an opportunity to ask questions, and include at least the following 
topics--
    (1) The unescorted access authority of the individual to enter and 
be present in various areas of the airport;
    (2) Control, use, and display of airport-approved access and 
identification media;
    (3) Escort and challenge procedures and the law enforcement support 
for these procedures;
    (4) Security responsibilities as specified in Sec.  1540.105;
    (5) Restrictions on divulging sensitive security information as 
described in part 1520 of this chapter; and
    (6) Any other topics specified in the security program.
    (c) An airport operator may not authorize any individual unescorted 
access to the AOA, except as provided in Sec.  1542.5, unless that 
individual has been provided information in accordance with the security 
program, including--
    (1) The unescorted access authority of the individual to enter and 
be present in various areas of the airport;
    (2) Control, use, and display of airport-approved access and 
identification media, if appropriate;
    (3) Escort and challenge procedures and the law enforcement support 
for these procedures, where applicable;
    (4) Security responsibilities as specified in Sec.  1540.105;
    (5) Restrictions on divulging sensitive security information as 
described in part 1520 of this chapter; and
    (6) Any other topics specified in the security program.
    (d) Each airport operator must maintain a record of all training and 
information given to each individual under paragraphs (b) and (c) of 
this section for 180 days after the termination of that person's 
unescorted access authority.
    (e) As to persons with unescorted access to the SIDA on November 14, 
2001, training on responsibility under Sec.  1540.105 can be provided by 
making relevant security information available.
    (f) Training described in paragraph (c) of this section must be 
implemented by each airport operator not later than November 14, 2002.



Sec.  1542.215  Law enforcement support.

    (a) In accordance with Sec.  1542.217, each airport operator 
required to have a security program under Sec.  1542.103(a) or (b) must 
provide:
    (1) Law enforcement personnel in the number and manner adequate to 
support its security program.
    (2) Uniformed law enforcement personnel in the number and manner 
adequate to support each system for screening persons and accessible 
property required under part 1544 or 1546 of this chapter, except to the 
extent that TSA provides Federal law enforcement support for the system.
    (b) Each airport required to have a security program under Sec.  
1542.103(c) must ensure that:
    (1) Law enforcement personnel are available and committed to respond 
to an incident in support of a civil aviation security program when 
requested by an aircraft operator or foreign air carrier that has a 
security program under part 1544 or 1546 of this chapter.
    (2) The procedures by which to request law enforcement support are 
provided to each aircraft operator or foreign air carrier that has a 
security program under part 1544 or 1546 of this chapter.



Sec.  1542.217  Law enforcement personnel.

    (a) Each airport operator must ensure that law enforcement personnel 
used to meet the requirements of Sec.  1542.215, meet the following 
qualifications while on duty at the airport--
    (1) Have arrest authority described in paragraph (b) of this 
section;
    (2) Are identifiable by appropriate indicia of authority;
    (3) Are armed with a firearm and authorized to use it; and
    (4) Have completed a training program that meets the requirements of 
paragraphs (c) and (d) of this section.
    (b) Each airport operator must ensure that each individual used to 
meet

[[Page 341]]

the requirements of Sec.  1542.215 have the authority to arrest, with or 
without a warrant, while on duty at the airport for the following 
violations of the criminal laws of the State and local jurisdictions in 
which the airport is located--
    (1) A crime committed in the presence of the individual; and
    (2) A felony, when the individual has reason to believe that the 
suspect has committed it.
    (c) The training program required by paragraph (a)(4) of this 
section must--
    (1) Meet the training standard for law enforcement officers 
prescribed by either the State or local jurisdiction in which the 
airport is located for law enforcement officers performing comparable 
functions.
    (2) Specify and require training standards for private law 
enforcement personnel acceptable to TSA, if the State and local 
jurisdictions in which the airport is located do not prescribe training 
standards for private law enforcement personnel that meets the standards 
in paragraph (a) of this section.
    (3) Include training in--
    (i) The use of firearms;
    (ii) The courteous and efficient treatment of persons subject to 
inspection, detention, search, arrest, and other aviation security 
activities;
    (iii) The responsibilities of law enforcement personnel under the 
security program; and
    (iv) Any other subject TSA determines is necessary.
    (d) Each airport operator must document the training program 
required by paragraph (a)(4) of this section and maintain documentation 
of training at a location specified in the security program until 180 
days after the departure or removal of each person providing law 
enforcement support at the airport.



Sec.  1542.219  Supplementing law enforcement personnel.

    (a) When TSA decides, after being notified by an airport operator as 
prescribed in this section, that not enough qualified State, local, and 
private law enforcement personnel are available to carry out the 
requirements of Sec.  1542.215, TSA may authorize the airport operator 
to use, on a reimbursable basis, personnel employed by TSA, or by 
another department, agency, or instrumentality of the Government with 
the consent of the head of the department, agency, or instrumentality to 
supplement State, local, and private law enforcement personnel.
    (b) Each request for the use of Federal personnel must be submitted 
to TSA and include the following information:
    (1) The number of passengers enplaned at the airport during the 
preceding calendar year and the current calendar year as of the date of 
the request.
    (2) The anticipated risk of criminal violence, sabotage, aircraft 
piracy, and other unlawful interference to civil aviation operations.
    (3) A copy of that portion of the security program which describes 
the law enforcement support necessary to comply with Sec.  1542.215.
    (4) The availability of law enforcement personnel who meet the 
requirements of Sec.  1542.217, including a description of the airport 
operator's efforts to obtain law enforcement support from State, local, 
and private agencies and the responses of those agencies.
    (5) The airport operator's estimate of the number of Federal 
personnel needed to supplement available law enforcement personnel and 
the period of time for which they are needed.
    (6) A statement acknowledging responsibility for providing 
reimbursement for the cost of providing Federal personnel.
    (7) Any other information TSA considers necessary.
    (c) In response to a request submitted in accordance with this 
section, TSA may authorize, on a reimbursable basis, the use of 
personnel employed by a Federal agency, with the consent of the head of 
that agency.



Sec.  1542.221  Records of law enforcement response.

    (a) Each airport operator must ensure that--
    (1) A record is made of each law enforcement action taken in 
furtherance of this part; and
    (2) The record is maintained for a minimum of 180 days.

[[Page 342]]

    (b) Data developed in response to paragraph (a) of this section must 
include at least the following, except as authorized by TSA:
    (1) The number and type of weapons, explosives, or incendiaries 
discovered during any passenger-screening process, and the method of 
detection of each.
    (2) The number of acts and attempted acts of aircraft piracy.
    (3) The number of bomb threats received, real and simulated bombs 
found, and actual detonations on the airport.
    (4) The number of arrests, including--
    (i) Name, address, and the immediate disposition of each individual 
arrested;
    (ii) Type of weapon, explosive, or incendiary confiscated, as 
appropriate; and
    (iii) Identification of the aircraft operators or foreign air 
carriers on which the individual arrested was, or was scheduled to be, a 
passenger or which screened that individual, as appropriate.



                     Subpart D_Contingency Measures



Sec.  1542.301  Contingency plan.

    (a) Each airport operator required to have a security program under 
Sec.  1542.103(a) and (b) must adopt a contingency plan and must:
    (1) Implement its contingency plan when directed by TSA.
    (2) Conduct reviews and exercises of its contingency plan as 
specified in the security program with all persons having 
responsibilities under the plan.
    (3) Ensure that all parties involved know their responsibilities and 
that all information contained in the plan is current.
    (b) TSA may approve alternative implementation measures, reviews, 
and exercises to the contingency plan which will provide an overall 
level of security equal to the contingency plan under paragraph (a) of 
this section.



Sec.  1542.303  Security Directives and Information Circulars.

    (a) TSA may issue an Information Circular to notify airport 
operators of security concerns. When TSA determines that additional 
security measures are necessary to respond to a threat assessment or to 
a specific threat against civil aviation, TSA issues a Security 
Directive setting forth mandatory measures.
    (b) Each airport operator must comply with each Security Directive 
issued to the airport operator within the time prescribed in the 
Security Directive.
    (c) Each airport operator that receives a Security Directive must--
    (1) Within the time prescribed in the Security Directive, verbally 
acknowledge receipt of the Security Directive to TSA.
    (2) Within the time prescribed in the Security Directive, specify 
the method by which the measures in the Security Directive have been 
implemented (or will be implemented, if the Security Directive is not 
yet effective).
    (d) In the event that the airport operator is unable to implement 
the measures in the Security Directive, the airport operator must submit 
proposed alternative measures and the basis for submitting the 
alternative measures to TSA for approval. The airport operator must 
submit the proposed alternative measures within the time prescribed in 
the Security Directive. The airport operator must implement any 
alternative measures approved by TSA.
    (e) Each airport operator that receives a Security Directive may 
comment on the Security Directive by submitting data, views, or 
arguments in writing to TSA. TSA may amend the Security Directive based 
on comments received. Submission of a comment does not delay the 
effective date of the Security Directive.
    (f) Each airport operator that receives a Security Directive or an 
Information Circular and each person who receives information from a 
Security Directive or an Information Circular must:
    (1) Restrict the availability of the Security Directive or 
Information Circular, and information contained in either document, to 
those persons with an operational need-to-know.
    (2) Refuse to release the Security Directive or Information 
Circular, and information contained in either document, to persons other 
than those who have an operational need to know without the prior 
written consent of TSA.

[[Page 343]]



Sec.  1542.305  Public advisories.

    When advised by TSA, each airport operator must prominently display 
and maintain in public areas information concerning foreign airports 
that, in the judgment of the Secretary of Transportation, do not 
maintain and administer effective security measures. This information 
must be posted in the manner specified in the security program and for 
such a period of time determined by the Secretary of Transportation.



Sec.  1542.307  Incident management.

    (a) Each airport operator must establish procedures to evaluate bomb 
threats, threats of sabotage, aircraft piracy, and other unlawful 
interference to civil aviation operations.
    (b) Immediately upon direct or referred receipt of a threat of any 
of the incidents described in paragraph (a) of this section, each 
airport operator must--
    (1) Evaluate the threat in accordance with its security program;
    (2) Initiate appropriate action as specified in the Airport 
Emergency Plan under 14 CFR 139.325; and
    (3) Immediately notify TSA of acts, or suspected acts, of unlawful 
interference to civil aviation operations, including specific bomb 
threats to aircraft and airport facilities.
    (c) Airport operators required to have a security program under 
Sec.  1542.103(c) but not subject to 14 CFR part 139, must develop 
emergency response procedures to incidents of threats identified in 
paragraph (a) of this section.
    (d) To ensure that all parties know their responsibilities and that 
all procedures are current, at least once every 12 calendar months each 
airport operator must review the procedures required in paragraphs (a) 
and (b) of this section with all persons having responsibilities for 
such procedures.



PART 1544_AIRCRAFT OPERATOR SECURITY: AIR CARRIERS AND COMMERCIAL OPERATORS--Table of Contents



                            Subpart A_General

Sec.
1544.1 Applicability of this part.
1544.3 TSA inspection authority.

                       Subpart B_Security Program

1544.101 Adoption and implementation.
1544.103 Form, content, and availability.
1544.105 Approval and amendments.

                          Subpart C_Operations

1544.201 Acceptance and screening of individuals and accessible 
          property.
1544.203 Acceptance and screening of checked baggage.
1544.202 Persons and property onboard an all-cargo aircraft.
1544.205 Acceptance and screening of cargo.
1544.207 Screening of individuals and property.
1544.209 Use of metal detection devices.
1544.211 Use of X-ray systems.
1544.213 Use of explosives detection systems.
1544.215 Security coordinators.
1544.217 Law enforcement personnel.
1544.219 Carriage of accessible weapons.
1544.221 Carriage of prisoners under the control of armed law 
          enforcement officers.
1544.223 Transportation of Federal Air Marshals.
1544.225 Security of aircraft and facilities.
1544.227 Exclusive area agreement.
1544.228 Access to cargo and cargo screening: Security threat 
          assessments for cargo personnel in the United States.
1544.229 Fingerprint-based criminal history records checks (CHRC): 
          Unescorted access authority, authority to perform screening 
          functions, and authority to perform checked baggage or cargo 
          functions.
1544.230 Fingerprint-based criminal history records checks (CHRC): 
          Flightcrew members.
1544.231 Airport-approved and exclusive area personnel identification 
          systems.
1544.233 Security coordinators and crewmembers, training.
1544.235 Training and knowledge for individuals with security-related 
          duties.
1544.237 Flight deck privileges.
1544.239 Known shipper program.

                  Subpart D_Threat and Threat Response

1544.301 Contingency plan.
1544.303 Bomb or air piracy threats.
1544.305 Security Directives and Information Circulars.

 Subpart E_Screener Qualifications When the Aircraft Operator Performs 
                                Screening

1544.401 Applicability of this subpart.
1544.403 [Reserved]
1544.405 Qualifications of screening personnel.
1544.407 Training, testing, and knowledge of individuals who perform 
          screening functions.
1544.409 Integrity of screener tests.

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1544.411 Continuing qualifications of screening personnel.

    Authority: 49 U.S.C. 114, 5103, 40113, 44901-44905, 44907, 44913-
44914, 44916-44918, 44932, 44935-44936, 44942, 46105.

    Source: 67 FR 8364, Feb. 22, 2002, unless otherwise noted.



                            Subpart A_General



Sec.  1544.1  Applicability of this part.

    (a) This part prescribes aviation security rules governing the 
following:
    (1) The operations of aircraft operators holding operating 
certificates under 14 CFR part 119 for scheduled passenger operations, 
public charter passenger operations, private charter passenger 
operations; the operations of aircraft operators holding operating 
certificates under 14 CFR part 119 operating aircraft with a maximum 
certificated takeoff weight of 12,500 pounds or more; and other aircraft 
operators adopting and obtaining approval of an aircraft operator 
security program.
    (2) Each law enforcement officer flying armed aboard an aircraft 
operated by an aircraft operator described in paragraph (a)(1) of this 
section.
    (3) Each aircraft operator that receives a Security Directive or 
Information Circular and each person who receives information from a 
Security Directive or Information Circular issued by TSA.
    (b) As used in this part, ``aircraft operator'' means an aircraft 
operator subject to this part as described in Sec.  1544.101.

[67 FR 8364, Feb. 22, 2002, as amended at 67 FR 8209, Feb. 22, 2002]



Sec.  1544.3  TSA inspection authority.

    (a) Each aircraft operator must allow TSA, at any time or place, to 
make any inspections or tests, including copying records, to determine 
compliance of an airport operator, aircraft operator, foreign air 
carrier, indirect air carrier, or other airport tenants with--
    (1) This subchapter and any security program under this subchapter, 
and part 1520 of this chapter; and
    (2) 49 U.S.C. Subtitle VII, as amended.
    (b) At the request of TSA, each aircraft operator must provide 
evidence of compliance with this part and its security program, 
including copies of records.
    (c) TSA may enter and be present within secured areas, AOAs, SIDAs, 
and other areas where security measures required by TSA are carried out, 
without access media or identification media issued or approved by an 
airport operator or aircraft operator, in order to inspect or test 
compliance, or perform other such duties as TSA may direct.
    (d) At the request of TSA and the completion of SIDA training as 
required in a security program, each aircraft operator must promptly 
issue to TSA personnel access and identification media to provide TSA 
personnel with unescorted access to, and movement within, areas 
controlled by the aircraft operator under an exclusive area agreement.

[67 FR 8364, Feb. 22, 2002, as amended at 71 FR 30510, May 26, 2006]



                       Subpart B_Security Program



Sec.  1544.101  Adoption and implementation.

    (a) Full program. Each aircraft operator must carry out subparts C, 
D, and E of this part and must adopt and carry out a security program 
that meets the requirements of Sec.  1544.103 for each of the following 
operations:
    (1) A scheduled passenger or public charter passenger operation with 
an aircraft having a passenger seating configuration of 61 or more 
seats.
    (2) A scheduled passenger or public charter passenger operation with 
an aircraft having a passenger seating configuration of 60 or fewer 
seats when passengers are enplaned from or deplaned into a sterile area.
    (b) Partial program--adoption. Each aircraft operator must carry out 
the requirements specified in paragraph (c) of this section for each of 
the following operations:
    (1) A scheduled passenger or public charter passenger operation with 
an aircraft having a passenger-seating configuration of 31 or more but 
60 or fewer seats that does not enplane from or deplane into a sterile 
area.
    (2) A scheduled passenger or public charter passenger operation with 
an

[[Page 345]]

aircraft having a passenger-seating configuration of 60 or fewer seats 
engaged in operations to, from, or outside the United States that does 
not enplane from or deplane into a sterile area.
    (c) Partial program-content: For operations described in paragraph 
(b) of this section, the aircraft operator must carry out the following, 
and must adopt and carry out a security program that meets the 
applicable requirements in Sec.  1544.103 (c):
    (1) The requirements of Sec. Sec.  1544.215, 1544.217, 1544.219, 
1544.223, 1544.230, 1544.235, 1544.237, 1544.301, 1544.303, and 
1544.305.
    (2) Other provisions of subparts C, D, and E of this part that TSA 
has approved upon request.
    (3) The remaining requirements of subparts C, D, and E when TSA 
notifies the aircraft operator in writing that a security threat exists 
concerning that operation.
    (d) Twelve-five program-adoption: Each aircraft operator must carry 
out the requirements of paragraph (e) of this section for each operation 
that meets all of the following--
    (1) Is an aircraft with a maximum certificated takeoff weight of 
more than 12,500 pounds;
    (2) Is in scheduled or charter service;
    (3) Is carrying passengers or cargo or both; and
    (4) Is not under a full program, partial program, or full all-cargo 
program under paragraph (a), (b), or (h) of this section.
    (e) Twelve-five program-contents: For each operation described in 
paragraph (d) of this section, the aircraft operator must carry out the 
following, and must adopt and carry out a security program that meets 
the applicable requirements of Sec.  1544.103 (c):
    (1) The requirements of Sec. Sec.  1544.215, 1544.217, 1544.219, 
1544.223, 1544.230, 1544.235, 1544.237, 1544.301(a) and (b), 1544.303, 
and 1544.305; and in addition, for all-cargo operations of Sec. Sec.  
1544.202, 1544.205(a), (b), (d), and (f).
    (2) Other provisions of subparts C, D, and E that TSA has approved 
upon request.
    (3) The remaining requirements of subparts C, D, and E when TSA 
notifies the aircraft operator in writing that a security threat exists 
concerning that operation.
    (f) Private charter program. In addition to paragraph (d) of this 
section, if applicable, each aircraft operator must carry out Sec. Sec.  
1544.201, 1544.207, 1544.209, 1544.211, 1544.215, 1544.217, 1544.219, 
1544.225, 1544.229, 1544.230, 1544.233, 1544.235, 1544.303, and 
1544.305, and subpart E of this part and--
    (1) Must adopt and carry out a security program that meets the 
applicable requirements of Sec.  1544.103 for each private charter 
passenger operation in which--
    (i) The passengers are enplaned from or deplaned into a sterile 
area; or
    (ii) The aircraft has a maximum certificated takeoff weight greater 
than 45,500 kg (100,309.3 pounds), or a passenger-seating configuration 
of 61 or more, and is not a government charter under paragraph (2) of 
the definition of private charter in Sec.  1540.5 of this chapter.
    (2) The Administrator may authorize alternate procedures under 
paragraph (f)(1) of this section as appropriate.
    (g) Limited program: In addition to paragraph (d) of this section, 
if applicable, TSA may approve a security program after receiving a 
request by an aircraft operator holding a certificate under 14 CFR part 
119, other than one identified in paragraph (a), (b), (d), or (f) of 
this section. The aircraft operator must--
    (1) Carry out selected provisions of subparts C, D, and E;
    (2) Carry out the provisions of Sec.  1544.305, as specified in its 
security program; and
    (3) Adopt and carry out a security program that meets the applicable 
requirements of Sec.  1544.103 (c).
    (h) Full all-cargo program--adoption: Each aircraft operator must 
carry out the requirements of paragraph (i) of this section for each 
operation that is--
    (1) In an aircraft with a maximum certificated takeoff weight of 
more than 45,500 kg (100,309.3 pounds); and
    (2) Carrying cargo and authorized persons and no passengers.
    (i) Full all-cargo program--contents: For each operation described 
in paragraph (h) of this section, the aircraft operator must carry out 
the following,

[[Page 346]]

and must adopt and carry out a security program that meets the 
applicable requirements of Sec.  1544.103(c):
    (1) The requirements of Sec. Sec.  1544.202, 1544.205, 1544.207, 
1544.209, 1544.211, 1544.215, 1544.217, 1544.219, 1544.225, 1544.227, 
1544.228, 1544.229, 1544.230, 1544.231, 1544.233, 1544.235, 1544.237, 
1544.301, 1544.303, and 1544.305.
    (2) Other provisions of subpart C of this part that TSA has approved 
upon request.
    (3) The remaining requirements of subpart C of this part when TSA 
notifies the aircraft operator in writing that a security threat exists 
concerning that operation.

[67 FR 8364, Feb. 22, 2002, as amended at 67 FR 8209, Feb. 22, 2002; 67 
FR 41639, June 19, 2002; 67 FR 79887, Dec. 31, 2002; 71 FR 30510, May 
26, 2006]



Sec.  1544.103  Form, content, and availability.

    (a) General requirements. Each security program must:
    (1) Provide for the safety of persons and property traveling on 
flights provided by the aircraft operator against acts of criminal 
violence and air piracy, and the introduction of explosives, 
incendiaries, or weapons aboard an aircraft.
    (2) Be in writing and signed by the aircraft operator or any person 
delegated authority in this matter.
    (3) Be approved by TSA.
    (b) Availability. Each aircraft operator having a security program 
must:
    (1) Maintain an original copy of the security program at its 
corporate office.
    (2) Have accessible a complete copy, or the pertinent portions of 
its security program, or appropriate implementing instructions, at each 
airport served. An electronic version of the program is adequate.
    (3) Make a copy of the security program available for inspection 
upon request of TSA.
    (4) Restrict the distribution, disclosure, and availability of 
information contained in the security program to persons with a need-to-
know as described in part 1520 of this chapter.
    (5) Refer requests for such information by other persons to TSA.
    (c) Content. The security program must include, as specified for 
that aircraft operator in Sec.  1544.101, the following:
    (1) The procedures and description of the facilities and equipment 
used to comply with the requirements of Sec.  1544.201 regarding the 
acceptance and screening of individuals and their accessible property, 
including, if applicable, the carriage weapons as part of State-required 
emergency equipment.
    (2) The procedures and description of the facilities and equipment 
used to comply with the requirements of Sec.  1544.203 regarding the 
acceptance and screening of checked baggage.
    (3) The procedures and description of the facilities and equipment 
used to comply with the requirements of Sec.  1544.205 regarding the 
acceptance and screening of cargo.
    (4) The procedures and description of the facilities and equipment 
used to comply with the requirements of Sec.  1544.207 regarding the 
screening of individuals and property.
    (5) The procedures and description of the facilities and equipment 
used to comply with the requirements of Sec.  1544.209 regarding the use 
of metal detection devices.
    (6) The procedures and description of the facilities and equipment 
used to comply with the requirements of Sec.  1544.211 regarding the use 
of x-ray systems.
    (7) The procedures and description of the facilities and equipment 
used to comply with the requirements of Sec.  1544.213 regarding the use 
of explosives detection systems.
    (8) The procedures used to comply with the requirements of Sec.  
1544.215 regarding the responsibilities of security coordinators. The 
names of the Aircraft Operator Security Coordinator (AOSC) and any 
alternate, and the means for contacting the AOSC(s) on a 24-hour basis, 
as provided in Sec.  1544.215.
    (9) The procedures used to comply with the requirements of Sec.  
1544.217 regarding the requirements for law enforcement personnel.
    (10) The procedures used to comply with the requirements of Sec.  
1544.219 regarding carriage of accessible weapons.

[[Page 347]]

    (11) The procedures used to comply with the requirements of Sec.  
1544.221 regarding carriage of prisoners under the control of armed law 
enforcement officers.
    (12) The procedures used to comply with the requirements of Sec.  
1544.223 regarding transportation of Federal Air Marshals.
    (13) The procedures and description of the facilities and equipment 
used to perform the aircraft and facilities control function specified 
in Sec.  1544.225.
    (14) The specific locations where the air carrier has entered into 
an exclusive area agreement under Sec.  1544.227.
    (15) The procedures used to comply with the applicable requirements 
of Sec. Sec.  1544.229 and 1544.230 regarding fingerprint-based criminal 
history records checks.
    (16) The procedures used to comply with the requirements of Sec.  
1544.231 regarding personnel identification systems.
    (17) The procedures and syllabi used to accomplish the training 
required under Sec.  1544.233.
    (18) The procedures and syllabi used to accomplish the training 
required under Sec.  1544.235.
    (19) An aviation security contingency plan as specified under Sec.  
1544.301.
    (20) The procedures used to comply with the requirements of Sec.  
1544.303 regarding bomb and air piracy threats.
    (21) The procedures used to comply with Sec.  1544.237 regarding 
flight deck privileges.
    (22) The Aircraft Operator Implementation Plan (AOIP) as required 
under 49 CFR 1560.109.

[67 FR 8364, Feb. 22, 2002, as amended at 67 FR 8209, Feb. 22, 2002; 73 
FR 64061, Oct. 28, 2008]



Sec.  1544.105  Approval and amendments.

    (a) Initial approval of security program. Unless otherwise 
authorized by TSA, each aircraft operator required to have a security 
program under this part must submit its proposed security program to the 
designated official for approval at least 90 days before the intended 
date of passenger operations. The proposed security program must meet 
the requirements applicable to its operation as described in Sec.  
1544.101. Such requests will be processed as follows:
    (1) The designated official, within 30 days after receiving the 
proposed aircraft operator security program, will either approve the 
program or give the aircraft operator written notice to modify the 
program to comply with the applicable requirements of this part.
    (2) The aircraft operator may either submit a modified security 
program to the designated official for approval, or petition the 
Administrator to reconsider the notice to modify within 30 days of 
receiving a notice to modify. A petition for reconsideration must be 
filed with the designated official.
    (3) The designated official, upon receipt of a petition for 
reconsideration, either amends or withdraws the notice, or transmits the 
petition, together with any pertinent information, to the Administrator 
for reconsideration. The Administrator disposes of the petition within 
30 days of receipt by either directing the designated official to 
withdraw or amend the notice to modify, or by affirming the notice to 
modify.
    (b) Amendment requested by an aircraft operator. An aircraft 
operator may submit a request to TSA to amend its security program as 
follows:
    (1) The request for an amendment must be filed with the designated 
official at least 45 days before the date it proposes for the amendment 
to become effective, unless a shorter period is allowed by the 
designated official.
    (2) Within 30 days after receiving a proposed amendment, the 
designated official, in writing, either approves or denies the request 
to amend.
    (3) An amendment to an aircraft operator security program may be 
approved if the designated official determines that safety and the 
public interest will allow it, and the proposed amendment provides the 
level of security required under this part.
    (4) Within 30 days after receiving a denial, the aircraft operator 
may petition the Administrator to reconsider the denial. A petition for 
reconsideration must be filed with the designated official.
    (5) Upon receipt of a petition for reconsideration, the designated 
official either approves the request to amend or transmits the petition, 
together

[[Page 348]]

with any pertinent information, to the Administrator for 
reconsideration. The Administrator disposes of the petition within 30 
days of receipt by either directing the designated official to approve 
the amendment, or affirming the denial.
    (6) Any aircraft operator may submit a group proposal for an 
amendment that is on behalf of it and other aircraft operators that co-
sign the proposal.
    (c) Amendment by TSA. If safety and the public interest require an 
amendment, TSA may amend a security program as follows:
    (1) The designated official notifies the aircraft operator, in 
writing, of the proposed amendment, fixing a period of not less than 30 
days within which the aircraft operator may submit written information, 
views, and arguments on the amendment.
    (2) After considering all relevant material, the designated official 
notifies the aircraft operator of any amendment adopted or rescinds the 
notice. If the amendment is adopted, it becomes effective not less than 
30 days after the aircraft operator receives the notice of amendment, 
unless the aircraft operator petitions the Administrator to reconsider 
no later than 15 days before the effective date of the amendment. The 
aircraft operator must send the petition for reconsideration to the 
designated official. A timely petition for reconsideration stays the 
effective date of the amendment.
    (3) Upon receipt of a petition for reconsideration, the designated 
official either amends or withdraws the notice or transmits the 
petition, together with any pertinent information, to the Administrator 
for reconsideration. The Administrator disposes of the petition within 
30 days of receipt by either directing the designated official to 
withdraw or amend the amendment, or by affirming the amendment.
    (d) Emergency amendments. If the designated official finds that 
there is an emergency requiring immediate action with respect to safety 
in air transportation or in air commerce that makes procedures in this 
section contrary to the public interest, the designated official may 
issue an amendment, without the prior notice and comment procedures in 
paragraph (c) of this section, effective without stay on the date the 
aircraft operator receives notice of it. In such a case, the designated 
official will incorporate in the notice a brief statement of the reasons 
and findings for the amendment to be adopted. The aircraft operator may 
file a petition for reconsideration under paragraph (c) of this section; 
however, this does not stay the effective date of the emergency 
amendment.



                          Subpart C_Operations



Sec.  1544.201  Acceptance and screening of individuals and accessible property.

    (a) Preventing or deterring the carriage of any explosive, 
incendiary, or deadly or dangerous weapon. Each aircraft operator must 
use the measures in its security program to prevent or deter the 
carriage of any weapon, explosive, or incendiary on or about each 
individual's person or accessible property before boarding an aircraft 
or entering a sterile area.
    (b) Screening of individuals and accessible property. Except as 
provided in its security program, each aircraft operator must ensure 
that each individual entering a sterile area at each preboard screening 
checkpoint for which it is responsible, and all accessible property 
under that individual's control, are inspected for weapons, explosives, 
and incendiaries as provided in Sec.  1544.207.
    (c) Refusal to transport. Each aircraft operator must deny entry 
into a sterile area and must refuse to transport--
    (1) Any individual who does not consent to a search or inspection of 
his or her person in accordance with the system prescribed in this part; 
and
    (2) Any property of any individual or other person who does not 
consent to a search or inspection of that property in accordance with 
the system prescribed by this part.
    (d) Prohibitions on carrying a weapon, explosive, or incendiary. 
Except as provided in Sec. Sec.  1544.219, 1544.221, and 1544.223, no 
aircraft operator may permit any individual to have a weapon, explosive, 
or incendiary, on or about the individual's person or accessible 
property when onboard an aircraft.

[[Page 349]]

    (e) Staffing. Each aircraft operator must staff its security 
screening checkpoints with supervisory and non-supervisory personnel in 
accordance with the standards specified in its security program.



Sec.  1544.202  Persons and property onboard an all-cargo aircraft.

    Each aircraft operator operating under a full all-cargo program, or 
a twelve-five program in an all-cargo operation, must apply the security 
measures in its security program for persons who board the aircraft for 
transportation, and for their property, to prevent or deter the carriage 
of any unauthorized persons, and any unauthorized weapons, explosives, 
incendiaries, and other destructive devices, items, or substances.

[71 FR 30510, May 26, 2006]



Sec.  1544.203  Acceptance and screening of checked baggage.

    (a) Preventing or deterring the carriage of any explosive or 
incendiary. Each aircraft operator must use the procedures, facilities, 
and equipment described in its security program to prevent or deter the 
carriage of any unauthorized explosive or incendiary onboard aircraft in 
checked baggage.
    (b) Acceptance. Each aircraft operator must ensure that checked 
baggage carried in the aircraft is received by its authorized aircraft 
operator representative.
    (c) Screening of checked baggage. Except as provided in its security 
program, each aircraft operator must ensure that all checked baggage is 
inspected for explosives and incendiaries before loading it on its 
aircraft, in accordance with Sec.  1544.207.
    (d) Control. Each aircraft operator must use the procedures in its 
security program to control checked baggage that it accepts for 
transport on an aircraft, in a manner that:
    (1) Prevents the unauthorized carriage of any explosive or 
incendiary aboard the aircraft.
    (2) Prevents access by persons other than an aircraft operator 
employee or its agent.
    (e) Refusal to transport. Each aircraft operator must refuse to 
transport any individual's checked baggage or property if the individual 
does not consent to a search or inspection of that checked baggage or 
property in accordance with the system prescribed by this part.
    (f) Firearms in checked baggage. No aircraft operator may knowingly 
permit any person to transport in checked baggage:
    (1) Any loaded firearm(s).
    (2) Any unloaded firearm(s) unless--
    (i) The passenger declares to the aircraft operator, either orally 
or in writing before checking the baggage that any firearm carried in 
the baggage is unloaded;
    (ii) The firearm is carried in a hard-sided container;
    (iii) The container in which it is carried is locked, and only the 
individual checking the baggage retains the key or combination; and
    (iv) The checked baggage containing the firearm is carried in an 
area that is inaccessible to passengers, and is not carried in the 
flightcrew compartment,.
    (3) Any unauthorized explosive or incendiary.
    (g) Ammunition. This section does not prohibit the carriage of 
ammunition in checked baggage or in the same container as a firearm. 
Title 49 CFR part 175 provides additional requirements governing 
carriage of ammunition on aircraft.



Sec.  1544.205  Acceptance and screening of cargo.

    (a) Preventing or deterring the carriage of any explosive or 
incendiary. Each aircraft operator operating under a full program, a 
full all-cargo program, or a twelve-five program in an all-cargo 
operation, must use the procedures, facilities, and equipment described 
in its security program to prevent or deter the carriage of any 
unauthorized persons, and any unauthorized explosives, incendiaries, and 
other destructive substances or items in cargo onboard an aircraft.
    (b) Screening and inspection of cargo. Each aircraft operator 
operating under a full program or a full all-cargo program, or a twelve-
five program in an all-cargo operation, must ensure that cargo is 
screened and inspected for any

[[Page 350]]

unauthorized person, and any unauthorized explosive, incendiary, and 
other destructive substance or item as provided in the aircraft 
operator's security program and Sec.  1544.207, and as provided in Sec.  
1544.239 for operations under a full program, before loading it on its 
aircraft.
    (c) Control. Each aircraft operator operating under a full program 
or a full all-cargo program must use the procedures in its security 
program to control cargo that it accepts for transport on an aircraft in 
a manner that:
    (1) Prevents the carriage of any unauthorized person, and any 
unauthorized explosive, incendiary, and other destructive substance or 
item in cargo onboard an aircraft.
    (2) Prevents unescorted access by persons other than an authorized 
aircraft operator employee or agent, or persons authorized by the 
airport operator or host government.
    (d) Refusal to transport. Except as otherwise provided in its 
program, each aircraft operator operating under a full program, a full 
all-cargo program, or a twelve-five program in an all-cargo operation, 
must refuse to transport any cargo if the shipper does not consent to a 
search or inspection of that cargo in accordance with the system 
prescribed by this part.
    (e) Acceptance of cargo only from specified persons. Each aircraft 
operator operating under a full program or a full all-cargo program may 
accept cargo to be loaded in the United States for air transportation 
only from the shipper, an aircraft operator, foreign air carrier, or 
indirect air carrier operating under a security program under this 
chapter with a comparable cargo security program, or, in the case of an 
operator under a full program, from a certified cargo screening 
facility, as provided in its security program.
    (f) Acceptance and screening of cargo outside the United States. For 
cargo to be loaded on its aircraft outside the United States, each 
aircraft operator must carry out the requirements of its security 
program.
    (g) Screening of cargo loaded inside the United States by a full 
program operator. For cargo to be loaded in the United States, each 
operator under a full program in Sec.  1544.101(a) must ensure that all 
cargo is screened in the United States as follows:
    (1) Amount screened. (i) Not later than February 3, 2009, each 
operator under a full program must ensure that at least 50 percent of 
its cargo is screened prior to transport on a passenger aircraft.
    (ii) Not later than August 3, 2010, each operator under a full 
program must ensure that 100 percent of its cargo is screened prior to 
transport on a passenger aircraft.
    (2) Methods of screening. For the purposes of this paragraph (g), 
the aircraft operator must ensure that cargo is screened using a 
physical examination or non-intrusive method of assessing whether cargo 
poses a threat to transportation security, as provided in its security 
program. Such methods may include TSA-approved x-ray systems, explosives 
detection systems, explosives trace detection, explosives detection 
canine teams certified by TSA, or a physical search together with 
manifest verification, or other method approved by TSA.
    (3) Limitation on who may conduct screening. Screening must be 
conducted by the aircraft operator on an airport with a complete program 
under 49 CFR part 1542, by another aircraft operator or foreign air 
carrier operating under a security program under this chapter with a 
comparable cargo security program on an airport, by a certified cargo 
screening facility in accordance with 49 CFR part 1549, or by TSA. If an 
aircraft operator or foreign air carrier screens cargo off an airport, 
it must do so as a certified cargo screening facility in accordance with 
part 1549.
    (4) Verification. The aircraft operator must verify that the chain 
of custody measures for the screened cargo are intact prior to loading 
such cargo on aircraft, or must ensure that the cargo is re-screened in 
accordance with this chapter.

[71 FR 30510, May 26, 2006, as amended at 74 FR 47703, Sept. 16, 2009]



Sec.  1544.207  Screening of individuals and property.

    (a) Applicability of this section. This section applies to the 
inspection of individuals, accessible property, checked baggage, and 
cargo as required under this part.

[[Page 351]]

    (b) Locations within the United States at which TSA conducts 
screening. Each aircraft operator must ensure that the individuals or 
property have been inspected by TSA before boarding or loading on its 
aircraft. This paragraph applies when TSA is conducting screening using 
TSA employees or when using companies under contract with TSA.
    (c) Aircraft operator conducting screening. Each aircraft operator 
must use the measures in its security program and in subpart E of this 
part to inspect the individual or property. This paragraph does not 
apply at locations identified in paragraphs (b) and (d) of this section.
    (d) Locations outside the United States at which the foreign 
government conducts screening. Each aircraft operator must ensure that 
all individuals and property have been inspected by the foreign 
government. This paragraph applies when the host government is 
conducting screening using government employees or when using companies 
under contract with the government.



Sec.  1544.209  Use of metal detection devices.

    (a) No aircraft operator may use a metal detection device within the 
United States or under the aircraft operator's operational control 
outside the United States to inspect persons, unless specifically 
authorized under a security program under this part. No aircraft 
operator may use such a device contrary to its security program.
    (b) Metal detection devices must meet the calibration standards 
established by TSA.



Sec.  1544.211  Use of X-ray systems.

    (a) TSA authorization required. No aircraft operator may use any X-
ray system within the United States or under the aircraft operator's 
operational control outside the United States to inspect accessible 
property or checked baggage, unless specifically authorized under its 
security program. No aircraft operator may use such a system in a manner 
contrary to its security program. TSA authorizes aircraft operators to 
use X-ray systems for inspecting accessible property or checked baggage 
under a security program if the aircraft operator shows that--
    (1) The system meets the standards for cabinet X-ray systems 
primarily for the inspection of baggage issued by the Food and Drug 
Administration (FDA) and published in 21 CFR 1020.40;
    (2) A program for initial and recurrent training of operators of the 
system is established, which includes training in radiation safety, the 
efficient use of X-ray systems, and the identification of weapons, 
explosives, and incendiaries; and
    (3) The system meets the imaging requirements set forth in its 
security program using the step wedge specified in American Society for 
Testing Materials (ASTM) Standard F792-88 (Reapproved 1993). This 
standard is incorporated by reference in paragraph (g) of this section.
    (b) Annual radiation survey. No aircraft operator may use any X-ray 
system unless, within the preceding 12 calendar months, a radiation 
survey is conducted that shows that the system meets the applicable 
performance standards in 21 CFR 1020.40.
    (c) Radiation survey after installation or moving. No aircraft 
operator may use any X-ray system after the system has been installed at 
a screening point or after the system has been moved unless a radiation 
survey is conducted which shows that the system meets the applicable 
performance standards in 21 CFR 1020.40. A radiation survey is not 
required for an X-ray system that is designed and constructed as a 
mobile unit and the aircraft operator shows that it can be moved without 
altering its performance.
    (d) Defect notice or modification order. No aircraft operator may 
use any X-ray system that is not in full compliance with any defect 
notice or modification order issued for that system by the FDA, unless 
the FDA has advised TSA that the defect or failure to comply does not 
create a significant risk of injury, including genetic injury, to any 
person.
    (e) Signs and inspection of photographic equipment and film. (1) At 
locations at which an aircraft operator uses an X-ray system to inspect 
accessible property the aircraft operator must ensure that a sign is 
posted in a

[[Page 352]]

conspicuous place at the screening checkpoint. At locations outside the 
United States at which a foreign government uses an X-ray system to 
inspect accessible property the aircraft operator must ensure that a 
sign is posted in a conspicuous place at the screening checkpoint.
    (2) At locations at which an aircraft operator or TSA uses an X-ray 
system to inspect checked baggage the aircraft operator must ensure that 
a sign is posted in a conspicuous place where the aircraft operator 
accepts checked baggage.
    (3) The signs required under this paragraph (e) must notify 
individuals that such items are being inspected by an X-ray and advise 
them to remove all X-ray, scientific, and high-speed film from 
accessible property and checked baggage before inspection. This sign 
must also advise individuals that they may request that an inspection be 
made of their photographic equipment and film packages without exposure 
to an X-ray system. If the X-ray system exposes any accessible property 
or checked baggage to more than one milliroentgen during the inspection, 
the sign must advise individuals to remove film of all kinds from their 
articles before inspection.
    (4) If requested by individuals, their photographic equipment and 
film packages must be inspected without exposure to an X-ray system.
    (f) Radiation survey verification after installation or moving. Each 
aircraft operator must maintain at least one copy of the results of the 
most recent radiation survey conducted under paragraph (b) or (c) of 
this section and must make it available for inspection upon request by 
TSA at each of the following locations--
    (1) The aircraft operator's principal business office; and
    (2) The place where the X-ray system is in operation.
    (g) Incorporation by reference. The American Society for Testing and 
Materials (ASTM) Standard F792-88 (Reapproved 1993), ``Standard Practice 
for Design and Use of Ionizing Radiation Equipment for the Detection of 
Items Prohibited in Controlled Access Areas,'' is approved for 
incorporation by reference by the Director of the Federal Register 
pursuant to 5 U.S.C. 552(a) and l CFR part 51. ASTM Standard F792-88 may 
be examined at the Department of Transportation (DOT) Docket, 400 
Seventh Street SW, Room Plaza 401, Washington, DC 20590, or on DOT's 
Docket Management System (DMS) web page at http://dms.dot.gov/search 
(under docket number FAA-2001-8725). Copies of the standard may be 
examined also at the National Archives and Records Administration 
(NARA). For information on the availability of this material at NARA, 
call 202-741-6030, or go to: http://www.archives.gov/federal--register/
code--of--federal--regulations/ibr--locations.html. In addition, ASTM 
Standard F792-88 (Reapproved 1993) may be obtained from the American 
Society for Testing and Materials, 100 Barr Harbor Drive, West 
Conshohocken, PA 19428-2959.
    (h) Duty time limitations. Each aircraft operator must comply with 
the X-ray operator duty time limitations specified in its security 
program.

[67 FR 8364, Feb. 22, 2002, as amended at 69 FR 18803, Apr. 9, 2004]



Sec.  1544.213  Use of explosives detection systems.

    (a) Use of explosive detection equipment. If TSA so requires by an 
amendment to an aircraft operator's security program, each aircraft 
operator required to conduct screening under a security program must use 
an explosives detection system approved by TSA to screen checked baggage 
on international flights.
    (b) Signs and inspection of photographic equipment and film. (1) At 
locations at which an aircraft operator or TSA uses an explosives 
detection system that uses X-ray technology to inspect checked baggage 
the aircraft operator must ensure that a sign is posted in a conspicuous 
place where the aircraft operator accepts checked baggage. The sign must 
notify individuals that such items are being inspected by an explosives 
detection system and advise them to remove all X-ray, scientific, and 
high-speed film from checked baggage before inspection. This sign must 
also advise individuals that they may request that an inspection be made 
of their photographic

[[Page 353]]

equipment and film packages without exposure to an explosives detection 
system.
    (2) If the explosives detection system exposes any checked baggage 
to more than one milliroentgen during the inspection the aircraft 
operator must post a sign which advises individuals to remove film of 
all kinds from their articles before inspection. If requested by 
individuals, their photographic equipment and film packages must be 
inspected without exposure to an explosives detection system.



Sec.  1544.215  Security coordinators.

    (a) Aircraft Operator Security Coordinator. Each aircraft operator 
must designate and use an Aircraft Operator Security Coordinator (AOSC). 
The AOSC and any alternates must be appointed at the corporate level and 
must serve as the aircraft operator's primary contact for security-
related activities and communications with TSA, as set forth in the 
security program. Either the AOSC, or an alternate AOSC, must be 
available on a 24-hour basis.
    (b) Ground Security Coordinator. Each aircraft operator must 
designate and use a Ground Security Coordinator for each domestic and 
international flight departure to carry out the Ground Security 
Coordinator duties specified in the aircraft operator's security 
program. The Ground Security Coordinator at each airport must conduct 
the following daily:
    (1) A review of all security-related functions for which the 
aircraft operator is responsible, for effectiveness and compliance with 
this part, the aircraft operator's security program, and applicable 
Security Directives.
    (2) Immediate initiation of corrective action for each instance of 
noncompliance with this part, the aircraft operator's security program, 
and applicable Security Directives. At foreign airports where such 
security measures are provided by an agency or contractor of a host 
government, the aircraft operator must notify TSA for assistance in 
resolving noncompliance issues.
    (c) In-flight Security Coordinator. Each aircraft operator must 
designate and use the pilot in command as the In-flight Security 
Coordinator for each domestic and international flight to perform duties 
specified in the aircraft operator's security program.



Sec.  1544.217  Law enforcement personnel.

    (a) The following applies to operations at airports within the 
United States that are not required to hold a security program under 
part 1542 of this chapter.
    (1) For operations described in Sec.  1544.101(a) each aircraft 
operator must provide for law enforcement personnel meeting the 
qualifications and standards specified in Sec. Sec.  1542.215 and 
1542.217 of this chapter.
    (2) For operations under a partial program under Sec.  1544.101(b) 
and (c), a twelve-five program under Sec.  1544.101(d) and (e), a 
private charter program under Sec.  1544.101(f), or a full all-cargo 
program under Sec.  1544.101(h) and (i), each aircraft operator must--
    (i) Arrange for law enforcement personnel meeting the qualifications 
and standards specified in Sec.  1542.217 of this chapter to be 
available to respond to an incident; and
    (ii) Provide its employees, including crewmembers, current 
information regarding procedures for obtaining law enforcement 
assistance at that airport.
    (b) The following applies to operations at airports required to hold 
security programs under part 1542 of this chapter. For operations under 
a partial program under Sec.  1544.101(b) and (c), a twelve-five program 
under Sec.  1544.101(d) and (e), a private charter program under Sec.  
1544.101(f), or a full all-cargo program under Sec.  1544.101(h) and 
(i), each aircraft operator must--
    (1) Arrange with TSA and the airport operator, as appropriate, for 
law enforcement personnel meeting the qualifications and standards 
specified in Sec.  1542.217 of this chapter to be available to respond 
to incidents, and
    (2) Provide its employees, including crewmembers, current 
information regarding procedures for obtaining law enforcement 
assistance at that airport.

[67 FR 8364, Feb. 22, 2002, as amended at 71 FR 30510, May 26, 2006]



Sec.  1544.219  Carriage of accessible weapons.

    (a) Flights for which screening is conducted. The provisions of 
Sec.  1544.201(d), with respect to accessible weapons, do

[[Page 354]]

not apply to a law enforcement officer (LEO) aboard a flight for which 
screening is required if the requirements of this section are met. 
Paragraph (a) of this section does not apply to a Federal Air Marshal on 
duty status under Sec.  1544.223.
    (1) Unless otherwise authorized by TSA, the armed LEO must meet the 
following requirements:
    (i) Be a Federal law enforcement officer or a full-time municipal, 
county, or state law enforcement officer who is a direct employee of a 
government agency.
    (ii) Be sworn and commissioned to enforce criminal statutes or 
immigration statutes.
    (iii) Be authorized by the employing agency to have the weapon in 
connection with assigned duties.
    (iv) Has completed the training program ``Law Enforcement Officers 
Flying Armed.''
    (2) In addition to the requirements of paragraph (a)(1) of this 
section, the armed LEO must have a need to have the weapon accessible 
from the time he or she would otherwise check the weapon until the time 
it would be claimed after deplaning. The need to have the weapon 
accessible must be determined by the employing agency, department, or 
service and be based on one of the following:
    (i) The provision of protective duty, for instance, assigned to a 
principal or advance team, or on travel required to be prepared to 
engage in a protective function.
    (ii) The conduct of a hazardous surveillance operation.
    (iii) On official travel required to report to another location, 
armed and prepared for duty.
    (iv) Employed as a Federal LEO, whether or not on official travel, 
and armed in accordance with an agency-wide policy governing that type 
of travel established by the employing agency by directive or policy 
statement.
    (v) Control of a prisoner, in accordance with Sec.  1544.221, or an 
armed LEO on a round trip ticket returning from escorting, or traveling 
to pick up, a prisoner.
    (vi) TSA Federal Air Marshal on duty status.
    (3) The armed LEO must comply with the following notification 
requirements:
    (i) All armed LEOs must notify the aircraft operator of the 
flight(s) on which he or she needs to have the weapon accessible at 
least 1 hour, or in an emergency as soon as practicable, before 
departure.
    (ii) Identify himself or herself to the aircraft operator by 
presenting credentials that include a clear full-face picture, the 
signature of the armed LEO, and the signature of the authorizing 
official of the agency, service, or department or the official seal of 
the agency, service, or department. A badge, shield, or similar device 
may not be used, or accepted, as the sole means of identification.
    (iii) If the armed LEO is a State, county, or municipal law 
enforcement officer, he or she must present an original letter of 
authority, signed by an authorizing official from his or her employing 
agency, service or department, confirming the need to travel armed and 
detailing the itinerary of the travel while armed.
    (iv) If the armed LEO is an escort for a foreign official then this 
paragraph (a)(3) may be satisfied by a State Department notification.
    (4) The aircraft operator must do the following:
    (i) Obtain information or documentation required in paragraphs 
(a)(3)(ii), (iii), and (iv) of this section.
    (ii) Advise the armed LEO, before boarding, of the aircraft 
operator's procedures for carrying out this section.
    (iii) Have the LEO confirm he/she has completed the training program 
``Law Enforcement Officers Flying Armed'' as required by TSA, unless 
otherwise authorized by TSA.
    (iv) Ensure that the identity of the armed LEO is known to the 
appropriate personnel who are responsible for security during the 
boarding of the aircraft.
    (v) Notify the pilot in command and other appropriate crewmembers, 
of the location of each armed LEO aboard the aircraft. Notify any other 
armed LEO of the location of each armed LEO, including FAM's. Under 
circumstances described in the security program, the aircraft operator 
must not close the

[[Page 355]]

doors until the notification is complete.
    (vi) Ensure that the information required in paragraphs (a)(3)(i) 
and (ii) of this section is furnished to the flight crew of each 
additional connecting flight by the Ground Security Coordinator or other 
designated agent at each location.
    (b) Flights for which screening is not conducted. The provisions of 
Sec.  1544.201(d), with respect to accessible weapons, do not apply to a 
LEO aboard a flight for which screening is not required if the 
requirements of paragraphs (a)(1), (3), and (4) of this section are met.
    (c) Alcohol. (1) No aircraft operator may serve any alcoholic 
beverage to an armed LEO.
    (2) No armed LEO may:
    (i) Consume any alcoholic beverage while aboard an aircraft operated 
by an aircraft operator.
    (ii) Board an aircraft armed if they have consumed an alcoholic 
beverage within the previous 8 hours.
    (d) Location of weapon. (1) Any individual traveling aboard an 
aircraft while armed must at all times keep their weapon:
    (i) Concealed and out of view, either on their person or in 
immediate reach, if the armed LEO is not in uniform.
    (ii) On their person, if the armed LEO is in uniform.
    (2) No individual may place a weapon in an overhead storage bin.



Sec.  1544.221  Carriage of prisoners under the control of armed law enforcement officers.

    (a) This section applies as follows:
    (1) This section applies to the transport of prisoners under the 
escort of an armed law enforcement officer.
    (2) This section does not apply to the carriage of passengers under 
voluntary protective escort.
    (3) This section does not apply to the escort of non-violent 
detainees of the Immigration and Naturalization Service. This section 
does not apply to individuals who may be traveling with a prisoner and 
armed escort, such as the family of a deportee who is under armed 
escort.
    (b) For the purpose of this section:
    (1) ``High risk prisoner'' means a prisoner who is an exceptional 
escape risk, as determined by the law enforcement agency, and charged 
with, or convicted of, a violent crime.
    (2) ``Low risk prisoner'' means any prisoner who has not been 
designated as ``high risk.''
    (c) No aircraft operator may carry a prisoner in the custody of an 
armed law enforcement officer aboard an aircraft for which screening is 
required unless, in addition to the requirements in Sec.  1544.219, the 
following requirements are met:
    (1) The agency responsible for control of the prisoner has 
determined whether the prisoner is considered a high risk or a low risk.
    (2) Unless otherwise authorized by TSA, no more than one high risk 
prisoner may be carried on the aircraft.
    (d) No aircraft operator may carry a prisoner in the custody of an 
armed law enforcement officer aboard an aircraft for which screening is 
required unless the following staffing requirements are met:
    (1) A minimum of one armed law enforcement officer must control a 
low risk prisoner on a flight that is scheduled for 4 hours or less. One 
armed law enforcement officer may control no more than two low risk 
prisoners.
    (2) A minimum of two armed law enforcement officers must control a 
low risk prisoner on a flight that is scheduled for more than 4 hours. 
Two armed law enforcement officers may control no more than two low risk 
prisoners.
    (3) For high-risk prisoners:
    (i) For one high-risk prisoner on a flight: A minimum of two armed 
law enforcement officers must control a high risk prisoner. No other 
prisoners may be under the control of those two armed law enforcement 
officers.
    (ii) If TSA has authorized more than one high-risk prisoner to be on 
the flight under paragraph (c)(2) of this section, a minimum of one 
armed law enforcement officer for each prisoner and one additional armed 
law enforcement officer must control the prisoners. No other prisoners 
may be under the control of those armed law enforcement officers.
    (e) An armed law enforcement officer who is escorting a prisoner--

[[Page 356]]

    (1) Must notify the aircraft operator at least 24 hours before the 
scheduled departure, or, if that is not possible as far in advance as 
possible of the following--
    (i) The identity of the prisoner to be carried and the flight on 
which it is proposed to carry the prisoner; and
    (ii) Whether or not the prisoner is considered to be a high risk or 
a low risk.
    (2) Must arrive at the check-in counter at least 1 hour before to 
the scheduled departure.
    (3) Must assure the aircraft operator, before departure, that each 
prisoner under the control of the officer(s) has been searched and does 
not have on or about his or her person or property anything that can be 
used as a weapon.
    (4) Must be seated between the prisoner and any aisle.
    (5) Must accompany the prisoner at all times, and keep the prisoner 
under control while aboard the aircraft.
    (f) No aircraft operator may carry a prisoner in the custody of an 
armed law enforcement officer aboard an aircraft unless the following 
are met:
    (1) When practicable, the prisoner must be boarded before any other 
boarding passengers and deplaned after all other deplaning passengers.
    (2) The prisoner must be seated in a seat that is neither located in 
any passenger lounge area nor located next to or directly across from 
any exit and, when practicable, the aircraft operator should seat the 
prisoner in the rearmost seat of the passenger cabin.
    (g) Each armed law enforcement officer escorting a prisoner and each 
aircraft operator must ensure that the prisoner is restrained from full 
use of his or her hands by an appropriate device that provides for 
minimum movement of the prisoner's hands, and must ensure that leg irons 
are not used.
    (h) No aircraft operator may provide a prisoner under the control of 
a law enforcement officer--
    (1) With food or beverage or metal eating utensils unless authorized 
to do so by the armed law enforcement officer.
    (2) With any alcoholic beverage.



Sec.  1544.223  Transportation of Federal Air Marshals.

    (a) A Federal Air Marshal on duty status may have a weapon 
accessible while aboard an aircraft for which screening is required.
    (b) Each aircraft operator must carry Federal Air Marshals, in the 
number and manner specified by TSA, on each scheduled passenger 
operation, and public charter passenger operation designated by TSA.
    (c) Each Federal Air Marshal must be carried on a first priority 
basis and without charge while on duty, including positioning and 
repositioning flights. When a Federal Air Marshal is assigned to a 
scheduled flight that is canceled for any reason, the aircraft operator 
must carry that Federal Air Marshal without charge on another flight as 
designated by TSA.
    (d) Each aircraft operator must assign the specific seat requested 
by a Federal Air Marshal who is on duty status. If another LEO is 
assigned to that seat or requests that seat, the aircraft operator must 
inform the Federal Air Marshal. The Federal Air Marshal will coordinate 
seat assignments with the other LEO.
    (e) The Federal Air Marshal identifies himself or herself to the 
aircraft operator by presenting credentials that include a clear, full-
face picture, the signature of the Federal Air Marshal, and the 
signature of the FAA Administrator. A badge, shield, or similar device 
may not be used or accepted as the sole means of identification.
    (f) The requirements of Sec.  1544.219(a) do not apply for a Federal 
Air Marshal on duty status.
    (g) Each aircraft operator must restrict any information concerning 
the presence, seating, names, and purpose of Federal Air Marshals at any 
station or on any flight to those persons with an operational need to 
know.
    (h) Law enforcement officers authorized to carry a weapon during a 
flight will be contacted directly by a Federal Air Marshal who is on 
that same flight.



Sec.  1544.225  Security of aircraft and facilities.

    Each aircraft operator must use the procedures included, and the 
facilities

[[Page 357]]

and equipment described, in its security program to perform the 
following control functions with respect to each aircraft operation:
    (a) Prevent unauthorized access to areas controlled by the aircraft 
operator under an exclusive area agreement in accordance with Sec.  
1542.111 of this chapter.
    (b) Prevent unauthorized access to each aircraft.
    (c) Conduct a security inspection of each aircraft before placing it 
into passenger operations if access has not been controlled in 
accordance with the aircraft operator security program and as otherwise 
required in the security program.
    (d) When operating under a full program or a full all-cargo program, 
prevent unauthorized access to the operational area of the aircraft 
while loading or unloading cargo.

[67 FR 8364, Feb. 22, 2002, as amended at 71 FR 30510, May 26, 2006]



Sec.  1544.227  Exclusive area agreement.

    (a) An aircraft operator that has entered into an exclusive area 
agreement with an airport operator, under Sec.  1542.111 of this chapter 
must carry out that exclusive area agreement.
    (b) The aircraft operator must list in its security program the 
locations at which it has entered into exclusive area agreements with an 
airport operator.
    (c) The aircraft operator must provide the exclusive area agreement 
to TSA upon request.
    (d) Any exclusive area agreements in effect on November 14, 2001, 
must meet the requirements of this section and Sec.  1542.111 of this 
chapter no later than November 14, 2002.



Sec.  1544.228  Access to cargo and cargo screening: Security threat assessments for cargo personnel in the United States.

    This section applies in the United States to each aircraft operator 
operating under a full program under Sec.  1544.101(a) or a full all-
cargo program under Sec.  1544.101(h).
    (a) Before an aircraft operator authorizes and before an individual 
performs a function described in paragraph (b) of this section--
    (1) Each individual must successfully complete a security threat 
assessment or comparable security threat assessment described in part 
1540 subpart C of this chapter; and
    (2) Each aircraft operator must complete the requirements in part 
1540 subpart C.
    (b) The security threat assessment required in paragraph (a) of this 
section applies to the following:
    (1) Each individual who has unescorted access to cargo and access to 
information that such cargo will be transported on a passenger aircraft; 
or who has unescorted access to cargo that has been screened for 
transport on a passenger aircraft; or who performs certain functions 
related to the transportation, dispatch, or security of cargo for 
transport on a passenger aircraft or all-cargo aircraft, as specified in 
the aircraft operator's security program; from the time--
    (i) The cargo reaches a location where an aircraft operator with a 
full all-cargo program consolidates or inspects it pursuant to security 
program requirements until the cargo enters an airport Security 
Identification Display Area or is transferred to another TSA-regulated 
aircraft operator, foreign air carrier, or indirect air carrier; or
    (ii) An aircraft operator with a full program accepts the cargo 
until the cargo--
    (A) Enters an airport Security Identification Display Area;
    (B) Is removed from the destination airport; or
    (C) Is transferred to another TSA-regulated aircraft operator, 
foreign air carrier, or indirect air carrier.
    (2) Each individual the aircraft operator authorizes to screen cargo 
or to supervise the screening of cargo under Sec.  1544.205.

[74 FR 47704, Sept. 16, 2009]

[[Page 358]]



Sec.  1544.229  Fingerprint-based criminal history records checks (CHRC): Unescorted access authority, authority to perform screening functions, and authority 
          to perform checked baggage or cargo functions.

    This section applies to each aircraft operator operating under a 
full program, a private charter program, or a full all-cargo program.
    (a) Scope. The following individuals are within the scope of this 
section. Unescorted access authority, authority to perform screening 
functions, and authority to perform checked baggage or cargo functions, 
are collectively referred to as ``covered functions.''
    (1) New unescorted access authority or authority to perform 
screening functions. (i) Each employee or contract employee covered 
under a certification made to an airport operator on or after December 
6, 2001, pursuant to 14 CFR 107.209(n) in effect prior to November 14, 
2001 (see 14 CFR parts 60 to 139 revised as of January 1, 2001) or Sec.  
1542.209(n) of this chapter.
    (ii) Each individual issued on or after December 6, 2001, an 
aircraft operator identification media that one or more airports accepts 
as airport-approved media for unescorted access authority within a 
security identification display area (SIDA), as described in Sec.  
1542.205 of this chapter (referred to as ``unescorted access 
authority'').
    (iii) Each individual granted authority to perform the following 
screening functions at locations within the United States (referred to 
as ``authority to perform screening functions''):
    (A) Screening passengers or property that will be carried in a cabin 
of an aircraft of an aircraft operator required to screen passengers 
under this part.
    (B) Serving as an immediate supervisor (checkpoint security 
supervisor (CSS)), and the next supervisory level (shift or site 
supervisor), to those individuals described in paragraphs (a)(1)(iii)(A) 
or (a)(1)(iii)(C) of this section.
    (C) Screening cargo that will be carried on an aircraft of an 
aircraft operator with a full all-cargo program.
    (2) Current unescorted access authority or authority to perform 
screening functions. (i) Each employee or contract employee covered 
under a certification made to an airport operator pursuant to 14 CFR 
107.31(n) in effect prior to November 14, 2001 (see 14 CFR parts 60 to 
139 revised as of January 1, 2001), or pursuant to 14 CFR 107.209(n) in 
effect prior to December 6, 2001 (see 14 CFR parts 60 to 139 revised as 
of January 1, 2001).
    (ii) Each individual who holds on December 6, 2001, an aircraft 
operator identification media that one or more airports accepts as 
airport-approved media for unescorted access authority within a security 
identification display area (SIDA), as described in Sec.  1542.205 of 
this chapter.
    (iii) Each individual who is performing on December 6, 2001, a 
screening function identified in paragraph (a)(1)(iii) of this section.
    (3) New authority to perform checked baggage or cargo functions. 
Each individual who, on and after February 17, 2002, is granted the 
authority to perform the following checked baggage and cargo functions 
(referred to as ``authority to perform checked baggage or cargo 
functions''), except for individuals described in paragraph (a)(1) of 
this section:
    (i) Screening of checked baggage or cargo of an aircraft operator 
required to screen passengers under this part, or serving as an 
immediate supervisor of such an individual.
    (ii) Accepting checked baggage for transport on behalf of an 
aircraft operator required to screen passengers under this part.
    (4) Current authority to perform checked baggage or cargo functions. 
Each individual who holds on February 17, 2002, authority to perform 
checked baggage or cargo functions, except for individuals described in 
paragraph (a)(1) or (2) of this section.
    (b) Individuals seeking unescorted access authority, authority to 
perform screening functions, or authority to perform checked baggage or 
cargo functions. Each aircraft operator must ensure that each individual 
identified in paragraph (a)(1) or (3) of this section has undergone a 
fingerprint-based CHRC that does not disclose that he or she has a 
disqualifying criminal offense, as described in paragraph (d) of this 
section, before--

[[Page 359]]

    (1) Making a certification to an airport operator regarding that 
individual;
    (2) Issuing an aircraft operator identification medium to that 
individual;
    (3) Authorizing that individual to perform screening functions; or
    (4) Authorizing that individual to perform checked baggage or cargo 
functions.
    (c) Individuals who have not had a CHRC--(1) Deadline for conducting 
a CHRC. Each aircraft operator must ensure that, on and after December 
6, 2002:
    (i) No individual retains unescorted access authority, whether 
obtained as a result of a certification to an airport operator under 14 
CFR 107.31(n) in effect prior to November 14, 2001 (see 14 CFR parts 60 
to 139 revised as of January 1, 2001), or under 14 CFR 107.209(n) in 
effect prior to December 6, 2001 (see 14 CFR Parts 60 to 139 revised as 
of January 1, 2001), or obtained as a result of the issuance of an 
aircraft operator's identification media, unless the individual has been 
subject to a fingerprint-based CHRC for unescorted access authority 
under this part.
    (ii) No individual continues to have authority to perform screening 
functions described in paragraph (a)(1)(iii) of this section, unless the 
individual has been subject to a fingerprint-based CHRC under this part.
    (iii) No individual continues to have authority to perform checked 
baggage or cargo functions described in paragraph (a)(3) of this 
section, unless the individual has been subject to a fingerprint-based 
CHRC under this part.
    (2) Lookback for individuals with unescorted access authority or 
authority to perform screening functions. When a CHRC discloses a 
disqualifying criminal offense for which the conviction or finding was 
on or after December 6, 1991, the aircraft operator must immediately 
suspend that individual's unescorted access authority or authority to 
perform screening functions.
    (3) Lookback for individuals with authority to perform checked 
baggage or cargo functions. When a CHRC discloses a disqualifying 
criminal offense for which the conviction or finding was on or after 
February 17, 1992, the aircraft operator must immediately suspend that 
individual's authority to perform checked baggage or cargo functions.
    (d) Disqualifying criminal offenses. An individual has a 
disqualifying criminal offense if the individual has been convicted, or 
found not guilty by reason of insanity, of any of the disqualifying 
crimes listed in this paragraph in any jurisdiction during the 10 years 
before the date of the individual's application for authority to perform 
covered functions, or while the individual has authority to perform 
covered functions. The disqualifying criminal offenses are as follows:
    (1) Forgery of certificates, false marking of aircraft, and other 
aircraft registration violation; 49 U.S.C. 46306.
    (2) Interference with air navigation; 49 U.S.C. 46308.
    (3) Improper transportation of a hazardous material; 49 U.S.C. 
46312.
    (4) Aircraft piracy; 49 U.S.C. 46502.
    (5) Interference with flight crew members or flight attendants; 49 
U.S.C. 46504.
    (6) Commission of certain crimes aboard aircraft in flight; 49 
U.S.C. 46506.
    (7) Carrying a weapon or explosive aboard aircraft; 49 U.S.C. 46505.
    (8) Conveying false information and threats; 49 U.S.C. 46507.
    (9) Aircraft piracy outside the special aircraft jurisdiction of the 
United States; 49 U.S.C. 46502(b).
    (10) Lighting violations involving transporting controlled 
substances; 49 U.S.C. 46315.
    (11) Unlawful entry into an aircraft or airport area that serves air 
carriers or foreign air carriers contrary to established security 
requirements; 49 U.S.C. 46314.
    (12) Destruction of an aircraft or aircraft facility; 18 U.S.C. 32.
    (13) Murder.
    (14) Assault with intent to murder.
    (15) Espionage.
    (16) Sedition.
    (17) Kidnapping or hostage taking.
    (18) Treason.
    (19) Rape or aggravated sexual abuse.
    (20) Unlawful possession, use, sale, distribution, or manufacture of 
an explosive or weapon.
    (21) Extortion.
    (22) Armed or felony unarmed robbery.

[[Page 360]]

    (23) Distribution of, or intent to distribute, a controlled 
substance.
    (24) Felony arson.
    (25) Felony involving a threat.
    (26) Felony involving--
    (i) Willful destruction of property;
    (ii) Importation or manufacture of a controlled substance;
    (iii) Burglary;
    (iv) Theft;
    (v) Dishonesty, fraud, or misrepresentation;
    (vi) Possession or distribution of stolen property;
    (vii) Aggravated assault;
    (viii) Bribery; or
    (ix) Illegal possession of a controlled substance punishable by a 
maximum term of imprisonment of more than 1 year.
    (27) Violence at international airports; 18 U.S.C. 37.
    (28) Conspiracy or attempt to commit any of the criminal acts listed 
in this paragraph (d).
    (e) Fingerprint application and processing. (1) At the time of 
fingerprinting, the aircraft operator must provide the individual to be 
fingerprinted a fingerprint application that includes only the 
following--
    (i) The disqualifying criminal offenses described in paragraph (d) 
of this section.
    (ii) A statement that the individual signing the application does 
not have a disqualifying criminal offense.
    (iii) A statement informing the individual that Federal regulations 
under 49 CFR 1544.229 impose a continuing obligation to disclose to the 
aircraft operator within 24 hours if he or she is convicted of any 
disqualifying criminal offense that occurs while he or she has authority 
to perform a covered function.
    (iv) A statement reading, ``The information I have provided on this 
application is true, complete, and correct to the best of my knowledge 
and belief and is provided in good faith. I understand that a knowing 
and willful false statement on this application can be punished by fine 
or imprisonment or both. (See section 1001 of Title 18 United States 
Code.)''
    (v) A line for the printed name of the individual.
    (vi) A line for the individual's signature and date of signature.
    (2) Each individual must complete and sign the application prior to 
submitting his or her fingerprints.
    (3) The aircraft operator must verify the identity of the individual 
through two forms of identification prior to fingerprinting, and ensure 
that the printed name on the fingerprint application is legible. At 
least one of the two forms of identification must have been issued by a 
government authority, and at least one must include a photo.
    (4) The aircraft operator must:
    (i) Advise the individual that a copy of the criminal record 
received from the FBI will be provided to the individual, if requested 
by the individual in writing; and
    (ii) Identify a point of contact if the individual has questions 
about the results of the CHRC.
    (5) The aircraft operator must collect, control, and process one set 
of legible and classifiable fingerprints under direct observation by the 
aircraft operator or a law enforcement officer.
    (6) Fingerprints may be obtained and processed electronically, or 
recorded on fingerprint cards approved by the FBI and distributed by TSA 
for that purpose.
    (7) The fingerprint submission must be forwarded to TSA in the 
manner specified by TSA.
    (f) Fingerprinting fees. Aircraft operators must pay for all 
fingerprints in a form and manner approved by TSA. The payment must be 
made at the designated rate (available from the local TSA security 
office) for each set of fingerprints submitted. Information about 
payment options is available though the designated TSA headquarters 
point of contact. Individual personal checks are not acceptable.
    (g) Determination of arrest status. (1) When a CHRC on an individual 
described in paragraph (a)(1) or (3) of this section discloses an arrest 
for any disqualifying criminal offense listed in paragraph (d) of this 
section without indicating a disposition, the aircraft operator must 
determine, after investigation, that the arrest did not result in a 
disqualifying offense before granting authority to perform a covered 
function. If there is no disposition, or if

[[Page 361]]

the disposition did not result in a conviction or in a finding of not 
guilty by reason of insanity of one of the offenses listed in paragraph 
(d) of this section, the individual is not disqualified under this 
section.
    (2) When a CHRC on an individual described in paragraph (a)(2) or 
(4) of this section discloses an arrest for any disqualifying criminal 
offense without indicating a disposition, the aircraft operator must 
suspend the individual's authority to perform a covered function not 
later than 45 days after obtaining the CHRC unless the aircraft operator 
determines, after investigation, that the arrest did not result in a 
disqualifying criminal offense. If there is no disposition, or if the 
disposition did not result in a conviction or in a finding of not guilty 
by reason of insanity of one of the offenses listed in paragraph (d) of 
this section, the individual is not disqualified under this section.
    (3) The aircraft operator may only make the determinations required 
in paragraphs (g)(1) and (g)(2) of this section for individuals for whom 
it is issuing, or has issued, authority to perform a covered function; 
and individuals who are covered by a certification from an aircraft 
operator under Sec.  1542.209(n) of this chapter. The aircraft operator 
may not make determinations for individuals described in Sec.  
1542.209(a) of this chapter.
    (h) Correction of FBI records and notification of disqualification. 
(1) Before making a final decision to deny authority to an individual 
described in paragraph (a)(1) or (3) of this section, the aircraft 
operator must advise him or her that the FBI criminal record discloses 
information that would disqualify him or her from receiving or retaining 
authority to perform a covered function and provide the individual with 
a copy of the FBI record if he or she requests it.
    (2) The aircraft operator must notify an individual that a final 
decision has been made to grant or deny authority to perform a covered 
function.
    (3) Immediately following the suspension of authority to perform a 
covered function, the aircraft operator must advise the individual that 
the FBI criminal record discloses information that disqualifies him or 
her from retaining his or her authority, and provide the individual with 
a copy of the FBI record if he or she requests it.
    (i) Corrective action by the individual. The individual may contact 
the local jurisdiction responsible for the information and the FBI to 
complete or correct the information contained in his or her record, 
subject to the following conditions--
    (1) For an individual seeking unescorted access authority or 
authority to perform screening functions on or after December 6, 2001; 
or an individual seeking authority to perform checked baggage or cargo 
functions on or after February 17, 2002; the following applies:
    (i) Within 30 days after being advised that the criminal record 
received from the FBI discloses a disqualifying criminal offense, the 
individual must notify the aircraft operator in writing of his or her 
intent to correct any information he or she believes to be inaccurate. 
The aircraft operator must obtain a copy, or accept a copy from the 
individual, of the revised FBI record or a certified true copy of the 
information from the appropriate court, prior to authority to perform a 
covered function.
    (ii) If no notification, as described in paragraph (h)(1) of this 
section, is received within 30 days, the aircraft operator may make a 
final determination to deny authority to perform a covered function.
    (2) For an individual with unescorted access authority or authority 
to perform screening functions before December 6, 2001; or an individual 
with authority to perform checked baggage or cargo functions before 
February 17, 2002; the following applies: Within 30 days after being 
advised of suspension because the criminal record received from the FBI 
discloses a disqualifying criminal offense, the individual must notify 
the aircraft operator in writing of his or her intent to correct any 
information he or she believes to be inaccurate. The aircraft operator 
must obtain a copy, or accept a copy from the individual, of the revised 
FBI record, or a certified true copy of the information from the 
appropriate court, prior to reinstating authority to perform a covered 
function.

[[Page 362]]

    (j) Limits on dissemination of results. Criminal record information 
provided by the FBI may be used only to carry out this section and Sec.  
1542.209 of this chapter. No person may disseminate the results of a 
CHRC to anyone other than:
    (1) The individual to whom the record pertains, or that individual's 
authorized representative.
    (2) Officials of airport operators who are determining whether to 
grant unescorted access to the individual under part 1542 of this 
chapter when the determination is not based on the aircraft operator's 
certification under Sec.  1542.209(n) of this chapter.
    (3) Other aircraft operators who are determining whether to grant 
authority to perform a covered function under this part.
    (4) Others designated by TSA.
    (k) Recordkeeping. The aircraft operator must maintain the following 
information.
    (1) Investigation conducted before December 6, 2001. The aircraft 
operator must maintain and control the access or employment history 
investigation files, including the criminal history records results 
portion, for investigations conducted before December 6, 2001.
    (2) Fingerprint application process on or after December 6, 2001. 
The aircraft operator must physically maintain, control, and, as 
appropriate, destroy the fingerprint application and the criminal 
record. Only direct aircraft operator employees may carry out the 
responsibility for maintaining, controlling, and destroying criminal 
records.
    (3) Protection of records--all investigations. The records required 
by this section must be maintained in a manner that is acceptable to TSA 
and in a manner that protects the confidentiality of the individual.
    (4) Duration--all investigations. The records identified in this 
section with regard to an individual must be maintained until 180 days 
after the termination of the individual's authority to perform a covered 
function. When files are no longer maintained, the criminal record must 
be destroyed.
    (l) Continuing responsibilities. (1) Each individual with unescorted 
access authority or the authority to perform screening functions on 
December 6, 2001, who had a disqualifying criminal offense in paragraph 
(d) of this section on or after December 6, 1991, must, by January 7, 
2002, report the conviction to the aircraft operator and surrender the 
SIDA access medium to the issuer and cease performing screening 
functions, as applicable.
    (2) Each individual with authority to perform a covered function who 
has a disqualifying criminal offense must report the offense to the 
aircraft operator and surrender the SIDA access medium to the issuer 
within 24 hours of the conviction or the finding of not guilty by reason 
of insanity.
    (3) If information becomes available to the aircraft operator 
indicating that an individual with authority to perform a covered 
function has a possible conviction for any disqualifying criminal 
offense in paragraph (d) of this section, the aircraft operator must 
determine the status of the conviction. If a disqualifying criminal 
offense is confirmed the aircraft operator must immediately revoke any 
authority to perform a covered function.
    (4) Each individual with authority to perform checked baggage or 
cargo functions on February 17, 2002, who had a disqualifying criminal 
offense in paragraph (d) of this section on or after February 17, 1992, 
must, by March 25 2002, report the conviction to the aircraft operator 
and cease performing check baggage or cargo functions.
    (m) Aircraft operator responsibility. The aircraft operator must--
    (1) Designate an individual(s) to be responsible for maintaining and 
controlling the employment history investigations for those whom the 
aircraft operator has made a certification to an airport operator under 
14 CFR 107.209(n) in effect prior to November 14, 2001 (see 14 CFR parts 
60 to 139 revised as of January 1, 2001), and for those whom the 
aircraft operator has issued identification media that are airport-
accepted. The aircraft operator must designate a direct employee to 
maintain, control, and, as appropriate, destroy criminal records.
    (2) Designate an individual(s) to maintain the employment history 
investigations of individuals with authority to perform screening 
functions

[[Page 363]]

whose files must be maintained at the location or station where the 
screener is performing his or her duties.
    (3) Designate an individual(s) at appropriate locations to serve as 
the contact to receive notification from individuals seeking authority 
to perform covered functions of their intent to seek correction of their 
FBI criminal record.
    (4) Audit the employment history investigations performed in 
accordance with this section and 14 CFR 108.33 in effect prior to 
November 14, 2001 (see 14 CFR parts 60 to 139 revised as of January 1, 
2001). The aircraft operator must set forth the audit procedures in its 
security program.

[67 FR 8364, Feb. 22, 2002, as amended at 71 FR 30511, May 26, 2006]



Sec.  1544.230  Fingerprint-based criminal history records checks (CHRC): Flightcrew members.

    (a) Scope. This section applies to each flightcrew member for each 
aircraft operator, except that this section does not apply to flightcrew 
members who are subject to Sec.  1544.229.
    (b) CHRC required. Each aircraft operator must ensure that each 
flightcrew member has undergone a fingerprint-based CHRC that does not 
disclose that he or she has a disqualifying criminal offense, as 
described in Sec.  1544.229(d), before allowing that individual to serve 
as a flightcrew member.
    (c) Application and fees. Each aircraft operator must ensure that 
each flightcrew member's fingerprints are obtained and submitted as 
described in Sec.  1544.229 (e) and (f).
    (d) Determination of arrest status. (1) When a CHRC on an individual 
described in paragraph (a) of this section discloses an arrest for any 
disqualifying criminal offense listed in Sec.  1544.229(d) without 
indicating a disposition, the aircraft operator must determine, after 
investigation, that the arrest did not result in a disqualifying offense 
before the individual may serve as a flightcrew member. If there is no 
disposition, or if the disposition did not result in a conviction or in 
a finding of not guilty by reason of insanity of one of the offenses 
listed in Sec.  1544.229(d), the flight crewmember is not disqualified 
under this section.
    (2) When a CHRC on an individual described in paragraph (a) of this 
section discloses an arrest for any disqualifying criminal offense 
listed in Sec.  1544.229(d) without indicating a disposition, the 
aircraft operator must suspend the individual's flightcrew member 
privileges not later than 45 days after obtaining a CHRC, unless the 
aircraft operator determines, after investigation, that the arrest did 
not result in a disqualifying criminal offense. If there is no 
disposition, or if the disposition did not result in a conviction or in 
a finding of not guilty by reason of insanity of one of the offenses 
listed in Sec.  1544.229(d), the flight crewmember is not disqualified 
under this section.
    (3) The aircraft operator may only make the determinations required 
in paragraphs (d)(1) and (d)(2) of this section for individuals whom it 
is using, or will use, as a flightcrew member. The aircraft operator may 
not make determinations for individuals described in Sec.  1542.209(a) 
of this chapter.
    (e) Correction of FBI records and notification of disqualification. 
(1) Before making a final decision to deny the individual the ability to 
serve as a flightcrew member, the aircraft operator must advise the 
individual that the FBI criminal record discloses information that would 
disqualify the individual from serving as a flightcrew member and 
provide the individual with a copy of the FBI record if the individual 
requests it.
    (2) The aircraft operator must notify the individual that a final 
decision has been made to allow or deny the individual flightcrew member 
status.
    (3) Immediately following the denial of flightcrew member status, 
the aircraft operator must advise the individual that the FBI criminal 
record discloses information that disqualifies him or her from retaining 
his or her flightcrew member status, and provide the individual with a 
copy of the FBI record if he or she requests it.
    (f) Corrective action by the individual. The individual may contact 
the local jurisdiction responsible for the information and the FBI to 
complete or correct the information contained in his or her record, 
subject to the following conditions--

[[Page 364]]

    (1) Within 30 days after being advised that the criminal record 
received from the FBI discloses a disqualifying criminal offense, the 
individual must notify the aircraft operator in writing of his or her 
intent to correct any information he or she believes to be inaccurate. 
The aircraft operator must obtain a copy, or accept a copy from the 
individual, of the revised FBI record or a certified true copy of the 
information from the appropriate court, prior to allowing the individual 
to serve as a flightcrew member.
    (2) If no notification, as described in paragraph (f)(1) of this 
section, is received within 30 days, the aircraft operator may make a 
final determination to deny the individual flightcrew member status.
    (g) Limits on the dissemination of results. Criminal record 
information provided by the FBI may be used only to carry out this 
section. No person may disseminate the results of a CHRC to anyone other 
than--
    (1) The individual to whom the record pertains, or that individual's 
authorized representative.
    (2) Others designated by TSA.
    (h) Recordkeeping--(1) Fingerprint application process. The aircraft 
operator must physically maintain, control, and, as appropriate, destroy 
the fingerprint application and the criminal record. Only direct 
aircraft operator employees may carry out the responsibility for 
maintaining, controlling, and destroying criminal records.
    (2) Protection of records. The records required by this section must 
be maintained by the aircraft operator in a manner that is acceptable to 
TSA that protects the confidentiality of the individual.
    (3) Duration. The records identified in this section with regard to 
an individual must be made available upon request by TSA, and maintained 
by the aircraft operator until 180 days after the termination of the 
individual's privileges to perform flightcrew member duties with the 
aircraft operator. When files are no longer maintained, the aircraft 
operator must destroy the CHRC results.
    (i) Continuing responsibilities. (1) Each flightcrew member 
identified in paragraph (a) of this section who has a disqualifying 
criminal offense must report the offense to the aircraft operator within 
24 hours of the conviction or the finding of not guilty by reason of 
insanity.
    (2) If information becomes available to the aircraft operator 
indicating that a flightcrew member identified in paragraph (a) of this 
section has a possible conviction for any disqualifying criminal offense 
in Sec.  1544.229 (d), the aircraft operator must determine the status 
of the conviction. If a disqualifying criminal offense is confirmed, the 
aircraft operator may not assign that individual to flightcrew duties in 
operations identified in paragraph (a).
    (j) Aircraft operator responsibility. The aircraft operator must--
(1) Designate a direct employee to maintain, control, and, as 
appropriate, destroy criminal records.
    (2) Designate an individual(s) to maintain the CHRC results.
    (3) Designate an individual(s) at appropriate locations to receive 
notification from individuals of their intent to seek correction of 
their FBI criminal record.
    (k) Compliance date. Each aircraft operator must comply with this 
section for each flightcrew member described in paragraph (a) of this 
section not later than December 6, 2002.

[67 FR 8209, Feb. 22, 2002]



Sec.  1544.231  Airport-approved and exclusive area personnel identification systems.

    (a) Each aircraft operator must establish and carry out a personnel 
identification system for identification media that are airport-
approved, or identification media that are issued for use in an 
exclusive area. The system must include the following:
    (1) Personnel identification media that--
    (i) Convey a full face image, full name, employer, and 
identification number of the individual to whom the identification 
medium is issued;
    (ii) Indicate clearly the scope of the individual's access and 
movement privileges;
    (iii) Indicate clearly an expiration date; and

[[Page 365]]

    (iv) Are of sufficient size and appearance as to be readily 
observable for challenge purposes.
    (2) Procedures to ensure that each individual in the secured area or 
SIDA continuously displays the identification medium issued to that 
individual on the outermost garment above waist level, or is under 
escort.
    (3) Procedures to ensure accountability through the following:
    (i) Retrieving expired identification media.
    (ii) Reporting lost or stolen identification media.
    (iii) Securing unissued identification media stock and supplies.
    (iv) Auditing the system at a minimum of once a year, or sooner, as 
necessary to ensure the integrity and accountability of all 
identification media.
    (v) As specified in the aircraft operator security program, 
revalidate the identification system or reissue identification media if 
a portion of all issued, unexpired identification media are lost, 
stolen, or unretrieved, including identification media that are combined 
with access media.
    (vi) Ensure that only one identification medium is issued to an 
individual at a time. A replacement identification medium may only be 
issued if an individual declares in writing that the medium has been 
lost or stolen.
    (b) The aircraft operator may request approval of a temporary 
identification media system that meets the standards in Sec.  
1542.211(b) of this chapter, or may arrange with the airport to use 
temporary airport identification media in accordance with that section.
    (c) Each aircraft operator must submit a plan to carry out this 
section to TSA no later than May 13, 2002. Each aircraft operator must 
fully implement its plan no later than November 14, 2003.



Sec.  1544.233  Security coordinators and crewmembers, training.

    (a) No aircraft operator may use any individual as a Ground Security 
Coordinator unless, within the preceding 12-calendar months, that 
individual has satisfactorily completed the security training as 
specified in the aircraft operator's security program.
    (b) No aircraft operator may use any individual as an in-flight 
security coordinator or crewmember on any domestic or international 
flight unless, within the preceding 12-calendar months or within the 
time period specified in an Advanced Qualifications Program approved 
under SFAR 58 in 14 CFR part 121, that individual has satisfactorily 
completed the security training required by 14 CFR 121.417(b)(3)(v) or 
135.331(b)(3)(v), and as specified in the aircraft operator's security 
program.
    (c) With respect to training conducted under this section, whenever 
an individual completes recurrent training within one calendar month 
earlier, or one calendar month after the date it was required, that 
individual is considered to have completed the training in the calendar 
month in which it was required.



Sec.  1544.235  Training and knowledge for individuals with security-related duties.

    (a) No aircraft operator may use any direct or contractor employee 
to perform any security-related duties to meet the requirements of its 
security program unless that individual has received training as 
specified in its security program including their individual 
responsibilities in Sec.  1540.105 of this chapter.
    (b) Each aircraft operator must ensure that individuals performing 
security-related duties for the aircraft operator have knowledge of the 
provisions of this part, applicable Security Directives and Information 
Circulars, the approved airport security program applicable to their 
location, and the aircraft operator's security program to the extent 
that such individuals need to know in order to perform their duties.



Sec.  1544.237  Flight deck privileges.

    (a) For each aircraft that has a door to the flight deck, each 
aircraft operator must restrict access to the flight deck as provided in 
its security program.
    (b) This section does not restrict access for an FAA air carrier 
inspector, an authorized representative of the National Transportation 
Safety Board, or

[[Page 366]]

for an Agent of the United States Secret Service, under 14 CFR parts 
121, 125, or 135. This section does not restrict access for a Federal 
Air Marshal under this part.

[67 FR 8210, Feb. 22, 2002]



Sec.  1544.239  Known shipper program.

    This section applies to each aircraft operator operating under a 
full program under Sec.  1544.101(a) of this part and to each aircraft 
operator with a TSA security program approved for transfer of cargo to 
an aircraft operator with a full program or a foreign air carrier under 
paragraphs Sec.  1546.101(a) or (b) of this chapter.
    (a) For cargo to be loaded on its aircraft in the United States, 
each aircraft operator must have and carry out a known shipper program 
in accordance with its security program. The program must--
    (1) Determine the shipper's validity and integrity as provided in 
the security program;
    (2) Provide that the aircraft operator will separate known shipper 
cargo from unknown shipper cargo; and
    (3) Provide for the aircraft operator to ensure that cargo is 
screened or inspected as set forth in its security program.
    (b) When required by TSA, each aircraft operator must submit in a 
form and manner acceptable to TSA--
    (1) Information identified in its security program regarding a known 
shipper, or an applicant for that status; and
    (2) Corrections and updates of this information upon learning of a 
change to the information specified in paragraph (b)(1) of this section.

[71 FR 30511, May 26, 2006]



                  Subpart D_Threat and Threat Response



Sec.  1544.301  Contingency plan.

    Each aircraft operator must adopt a contingency plan and must:
    (a) Implement its contingency plan when directed by TSA.
    (b) Ensure that all information contained in the plan is updated 
annually and that appropriate persons are notified of any changes.
    (c) Participate in an airport-sponsored exercise of the airport 
contingency plan or its equivalent, as provided in its security program.



Sec.  1544.303  Bomb or air piracy threats.

    (a) Flight: Notification. Upon receipt of a specific and credible 
threat to the security of a flight, the aircraft operator must--
    (1) Immediately notify the ground and in-flight security 
coordinators of the threat, any evaluation thereof, and any measures to 
be applied; and
    (2) Ensure that the in-flight security coordinator notifies all 
crewmembers of the threat, any evaluation thereof, and any measures to 
be applied; and
    (3) Immediately notify the appropriate airport operator.
    (b) Flight: Inspection. Upon receipt of a specific and credible 
threat to the security of a flight, each aircraft operator must attempt 
to determine whether or not any explosive or incendiary is present by 
doing the following:
    (1) Conduct a security inspection on the ground before the next 
flight or, if the aircraft is in flight, immediately after its next 
landing.
    (2) If the aircraft is on the ground, immediately deplane all 
passengers and submit that aircraft to a security search.
    (3) If the aircraft is in flight, immediately advise the pilot in 
command of all pertinent information available so that necessary 
emergency action can be taken.
    (c) Ground facility. Upon receipt of a specific and credible threat 
to a specific ground facility at the airport, the aircraft operator 
must:
    (1) Immediately notify the appropriate airport operator.
    (2) Inform all other aircraft operators and foreign air carriers at 
the threatened facility.
    (3) Conduct a security inspection.
    (d) Notification. Upon receipt of any bomb threat against the 
security of a flight or facility, or upon receiving information that an 
act or suspected act of air piracy has been committed, the aircraft 
operator also must notify TSA. If the aircraft is in airspace under 
other than U.S. jurisdiction, the aircraft operator must also notify the 
appropriate authorities of the State in

[[Page 367]]

whose territory the aircraft is located and, if the aircraft is in 
flight, the appropriate authorities of the State in whose territory the 
aircraft is to land. Notification of the appropriate air traffic 
controlling authority is sufficient action to meet this requirement.



Sec.  1544.305  Security Directives and Information Circulars.

    (a) TSA may issue an Information Circular to notify aircraft 
operators of security concerns. When TSA determines that additional 
security measures are necessary to respond to a threat assessment or to 
a specific threat against civil aviation, TSA issues a Security 
Directive setting forth mandatory measures.
    (b) Each aircraft operator required to have an approved aircraft 
operator security program must comply with each Security Directive 
issued to the aircraft operator by TSA, within the time prescribed in 
the Security Directive for compliance.
    (c) Each aircraft operator that receives a Security Directive must--
    (1) Within the time prescribed in the Security Directive, verbally 
acknowledge receipt of the Security Directive to TSA.
    (2) Within the time prescribed in the Security Directive, specify 
the method by which the measures in the Security Directive have been 
implemented (or will be implemented, if the Security Directive is not 
yet effective).
    (d) In the event that the aircraft operator is unable to implement 
the measures in the Security Directive, the aircraft operator must 
submit proposed alternative measures and the basis for submitting the 
alternative measures to TSA for approval. The aircraft operator must 
submit the proposed alternative measures within the time prescribed in 
the Security Directive. The aircraft operator must implement any 
alternative measures approved by TSA.
    (e) Each aircraft operator that receives a Security Directive may 
comment on the Security Directive by submitting data, views, or 
arguments in writing to TSA. TSA may amend the Security Directive based 
on comments received. Submission of a comment does not delay the 
effective date of the Security Directive.
    (f) Each aircraft operator that receives a Security Directive or 
Information Circular and each person who receives information from a 
Security Directive or Information Circular must:
    (1) Restrict the availability of the Security Directive or 
Information Circular, and information contained in either document, to 
those persons with an operational need-to-know.
    (2) Refuse to release the Security Directive or Information 
Circular, and information contained in either document, to persons other 
than those with an operational need-to-know without the prior written 
consent of TSA.



 Subpart E_Screener Qualifications When the Aircraft Operator Performs 
                                Screening



Sec.  1544.401  Applicability of this subpart.

    This subpart applies when the aircraft operator is conducting 
inspections as provided in Sec.  1544.207.

[74 FR 47704, Sept. 16, 2009]



Sec.  1544.403  [Reserved]



Sec.  1544.405  Qualifications of screening personnel.

    (a) No individual subject to this subpart may perform a screening 
function unless that individual has the qualifications described in 
Sec. Sec.  1544.405 through 1544.411. No aircraft operator may use such 
an individual to perform a screening function unless that person 
complies with the requirements of Sec. Sec.  1544.405 through 1544.411.
    (b) A screener must have a satisfactory or better score on a 
screener selection test administered by TSA.
    (c) A screener must be a citizen of the United States.
    (d) A screener must have a high school diploma, a General 
Equivalency Diploma, or a combination of education and experience that 
the TSA has determined to be sufficient for the individual to perform 
the duties of the position.
    (e) A screener must have basic aptitudes and physical abilities 
including color perception, visual and aural acuity, physical 
coordination, and motor skills to the following standards:

[[Page 368]]

    (1) Screeners operating screening equipment must be able to 
distinguish on the screening equipment monitor the appropriate imaging 
standard specified in the aircraft operator's security program.
    (2) Screeners operating any screening equipment must be able to 
distinguish each color displayed on every type of screening equipment 
and explain what each color signifies.
    (3) Screeners must be able to hear and respond to the spoken voice 
and to audible alarms generated by screening equipment at an active 
screening location.
    (4) Screeners who perform physical searches or other related 
operations must be able to efficiently and thoroughly manipulate and 
handle such baggage, containers, cargo, and other objects subject to 
screening.
    (5) Screeners who perform pat-downs or hand-held metal detector 
searches of individuals must have sufficient dexterity and capability to 
thoroughly conduct those procedures over an individual's entire body.
    (f) A screener must have the ability to read, speak, and write 
English well enough to--
    (1) Carry out written and oral instructions regarding the proper 
performance of screening duties;
    (2) Read English language identification media, credentials, airline 
tickets, documents, air waybills, invoices, and labels on items normally 
encountered in the screening process;
    (3) Provide direction to and understand and answer questions from 
English-speaking individuals undergoing screening; and
    (4) Write incident reports and statements and log entries into 
security records in the English language.
    (g) At locations outside the United States where the aircraft 
operator has operational control over a screening function, the aircraft 
operator may use screeners who do not meet the requirements of paragraph 
(f) of this section, provided that at least one representative of the 
aircraft operator who has the ability to functionally read and speak 
English is present while the aircraft operator's passengers are 
undergoing security screening. At such locations the aircraft operator 
may use screeners who are not United States citizens.



Sec.  1544.407  Training, testing, and knowledge of individuals who perform screening functions.

    (a) Training required. Before performing screening functions, an 
individual must have completed initial, recurrent, and appropriate 
specialized training as specified in this section and the aircraft 
operator's security program. No aircraft operator may use any screener, 
screener in charge, or checkpoint security supervisor unless that 
individual has satisfactorily completed the required training. This 
paragraph does not prohibit the performance of screening functions 
during on-the-job training as provided in Sec.  1544.409 (b).
    (b) Use of training programs. Training for screeners must be 
conducted under programs provided by TSA. Training programs for 
screeners-in-charge and checkpoint security supervisors must be 
conducted in accordance with the aircraft operator's security program.
    (c) Citizenship. A screener must be a citizen or national of the 
United States.
    (d) Screener readiness test. Before beginning on-the-job training, a 
screener trainee must pass the screener readiness test prescribed by 
TSA.
    (e) On-the-job training and testing. Each screener must complete at 
least 60 hours of on-the-job training and must pass an on-the-job 
training test prescribed by TSA. No aircraft operator may permit a 
screener trainee to exercise independent judgment as a screener, until 
the individual passes an on-the-job training test prescribed by TSA.
    (f) Knowledge requirements. Each aircraft operator must ensure that 
individuals performing as screeners, screeners-in-charge, and checkpoint 
security supervisors for the aircraft operator have knowledge of the 
provisions of this part, the aircraft operator's security program, and 
applicable Security Directives and Information Circulars to the extent 
necessary to perform their duties.
    (g) Disclosure of sensitive security information during training. 
The aircraft operator may not permit a trainee to

[[Page 369]]

have access to sensitive security information during screener training 
unless a criminal history records check has successfully been completed 
for that individual in accordance with Sec.  1544.229, and the 
individual has no disqualifying criminal offense.

[67 FR 8364, Feb. 22, 2002, as amended at 74 FR 47704, Sept. 16, 2009]



Sec.  1544.409  Integrity of screener tests.

    (a) Cheating or other unauthorized conduct. (1) Except as authorized 
by the TSA, no person may--
    (i) Copy or intentionally remove a test under this part;
    (ii) Give to another or receive from another any part or copy of 
that test;
    (iii) Give help on that test to or receive help on that test from 
any person during the period that the test is being given; or
    (iv) Use any material or aid during the period that the test is 
being given.
    (2) No person may take any part of that test on behalf of another 
person.
    (3) No person may cause, assist, or participate intentionally in any 
act prohibited by this paragraph (a).
    (b) Administering and monitoring screener tests. (1) Each aircraft 
operator must notify TSA of the time and location at which it will 
administer each screener readiness test required under Sec.  
1544.405(d).
    (2) Either TSA or the aircraft operator must administer and monitor 
the screener readiness test. Where more than one aircraft operator or 
foreign air carrier uses a screening location, TSA may authorize an 
employee of one or more of the aircraft operators or foreign air 
carriers to monitor the test for a trainee who will screen at that 
location.
    (3) If TSA or a representative of TSA is not available to administer 
and monitor a screener readiness test, the aircraft operator must 
provide a direct employee to administer and monitor the screener 
readiness test.
    (4) An aircraft operator employee who administers and monitors a 
screener readiness test must not be an instructor, screener, screener-
in-charge, checkpoint security supervisor, or other screening 
supervisor. The employee must be familiar with the procedures for 
administering and monitoring the test and must be capable of observing 
whether the trainee or others are engaging in cheating or other 
unauthorized conduct.



Sec.  1544.411  Continuing qualifications of screening personnel.

    (a) Impairment. No individual may perform a screening function if he 
or she shows evidence of impairment, such as impairment due to illegal 
drugs, sleep deprivation, medication, or alcohol.
    (b) Training not complete. An individual who has not completed the 
training required by Sec.  1544.405 may be deployed during the on-the-
job portion of training to perform security functions provided that the 
individual--
    (1) Is closely supervised; and
    (2) Does not make independent judgments as to whether individuals or 
property may enter a sterile area or aircraft without further 
inspection.
    (c) Failure of operational test. No aircraft operator may use an 
individual to perform a screening function after that individual has 
failed an operational test related to that function, until that 
individual has successfully completed the remedial training specified in 
the aircraft operator's security program.
    (d) Annual proficiency review. Each individual assigned screening 
duties shall receive an annual evaluation. The aircraft operator must 
ensure that a Ground Security Coordinator conducts and documents an 
annual evaluation of each individual who performs screening functions. 
An individual who performs screening functions may not continue to 
perform such functions unless the evaluation demonstrates that the 
individual--
    (1) Continues to meet all qualifications and standards required to 
perform a screening function;
    (2) Has a satisfactory record of performance and attention to duty 
based on the standards and requirements in the aircraft operator's 
security program; and
    (3) Demonstrates the current knowledge and skills necessary to 
courteously, vigilantly, and effectively perform screening functions.

[[Page 370]]



PART 1546_FOREIGN AIR CARRIER SECURITY--Table of Contents



                            Subpart A_General

Sec.
1546.1 Applicability of this part.
1546.3 TSA inspection authority.

                       Subpart B_Security Program

1546.101 Adoption and implementation.
1546.103 Form, content, and availability of security program.
1546.105 Acceptance of and amendments to the security program.

                          Subpart C_Operations

1546.201 Acceptance and screening of individuals and accessible 
          property.
1546.202 Persons and property onboard the aircraft.
1546.203 Acceptance and screening of checked baggage.
1546.205 Acceptance and screening of cargo.
1546.207 Screening of individuals and property.
1546.209 Use of X-ray systems.
1546.211 Law enforcement personnel.
1546.213 Access to cargo: Security threat assessments for cargo 
          personnel in the United States.
1546.215 Known shipper program.

                  Subpart D_Threat and Threat Response

1546.301 Bomb or air piracy threats.

Subpart E_Screener Qualifications When the Foreign Air Carrier Conducts 
                                Screening

1546.401 Applicability of this subpart.
1546.403 [Reserved]
1546.405 Qualifications of screening personnel.
1546.407 Training, testing, and knowledge of individuals who perform 
          screening functions.
1546.409 Integrity of screener tests.
1546.411 Continuing qualifications of screening personnel.

    Authority: 49 U.S.C. 114, 5103, 40113, 44901-44905, 44907, 44914, 
44916-44917, 44935-44936, 44942, 46105.

    Source: 67 FR 8377, Feb. 22, 2002, unless otherwise noted.



                            Subpart A_General



Sec.  1546.1  Applicability of this part.

    This part prescribes aviation security rules governing the 
following:
    (a) The operation within the United States of each foreign air 
carrier holding a permit issued by the Department of Transportation 
under 49 U.S.C. 41302 or other appropriate authority issued by the 
former Civil Aeronautics Board or the Department of Transportation.
    (b) Each law enforcement officer flying armed aboard an aircraft 
operated by a foreign air carrier described in paragraph (a) of this 
section.



Sec.  1546.3  TSA inspection authority.

    (a) Each foreign air carrier must allow TSA, at any time or place, 
to make any inspections or tests, including copying records, to 
determine compliance of an airport operator, aircraft operator, foreign 
air carrier, indirect air carrier, or other airport tenants with--
    (1) This subchapter and any security program under this subchapter, 
and part 1520 of this chapter; and
    (2) 49 U.S.C. Subtitle VII, as amended.
    (b) At the request of TSA, each foreign air carrier must provide 
evidence of compliance with this subchapter and its security program, 
including copies of records.
    (c) TSA may enter and be present within secured areas, AOAs, SIDAs, 
and other areas where security measures required by TSA are carried out, 
without access media or identification media issued or approved by an 
airport operator or aircraft operator, in order to inspect or test 
compliance, or perform other such duties as TSA may direct.

[67 FR 8377, Feb. 22, 2002, as amended at 71 FR 30511, May 26, 2006]



                       Subpart B_Security Program



Sec.  1546.101  Adoption and implementation.

    Each foreign air carrier landing or taking off in the United States 
must adopt and carry out, for each scheduled and public charter 
passenger operation or all-cargo operation, a security program that 
meets the requirements of--
    (a) Section 1546.103(b) and subparts C, D, and E of this part for 
each operation with an aircraft having a passenger seating configuration 
of 61 or more seats;

[[Page 371]]

    (b) Section 1546.103(b) for each operation that will provide 
deplaned passengers access to a sterile area, or enplane passengers from 
a sterile area, when that access is not controlled by an aircraft 
operator using a security program under part 1544 of this chapter or a 
foreign air carrier using a security program under this part;
    (c) Section 1546.103(b) for each operation with an airplane having a 
passenger seating configuration of 31 or more seats but 60 or fewer 
seats for which TSA has notified the foreign air carrier in writing that 
a threat exists; and
    (d) Section 1546.103(c) for each operation with an airplane having a 
passenger seating configuration of 31 or more seats but 60 or fewer 
seats, when TSA has not notified the foreign air carrier in writing that 
a threat exists with respect to that operation.
    (e) Sections 1546.103(b)(2) and (b)(4), 1546.202, 1546.205(a), (b), 
(c), (d), (e), and (f), 1546.207, 1546.211, 1546.213, and 1546.301 for 
each all-cargo operation with an aircraft having a maximum certificated 
take-off weight more than 45,500 kg (100,309.3 lbs.); and
    (f) Sections 1546.103(b)(2) and (b)(4), 1546.202, 1546.205(a), (b), 
(d), and (f), 1546.211, and 1546.301 for each all-cargo operation with 
an aircraft having a maximum certificated take-off weight more than 
12,500 pounds but not more than 45,500 kg (100,309.3 lbs.).

[67 FR 8377, Feb. 22, 2002, as amended at 71 FR 30511, May 26, 2006]



Sec.  1546.103  Form, content, and availability of security program.

    (a) General requirements. The security program must be:
    (1) Acceptable to TSA. A foreign air carrier's security program is 
acceptable only if TSA finds that the security program provides a level 
of protection similar to the level of protection provided by U.S. 
aircraft operators serving the same airports. Foreign air carriers must 
employ procedures equivalent to those required of U.S. aircraft 
operators serving the same airport, if TSA determines that such 
procedures are necessary to provide a similar level of protection.
    (2) In English unless TSA requests that the program be submitted in 
the official language of the foreign air carrier's country.
    (b) Content of security program. Each security program required by 
Sec.  1546.101(a), (b), (c), (e), or (f) must be designed to--
    (1) Prevent or deter the carriage aboard airplanes of any 
unauthorized explosive, incendiary, or weapon on or about each 
individual's person or accessible property, except as provided in Sec.  
1546.201(d), through screening by weapon-detecting procedures or 
facilities;
    (2) Prohibit unauthorized access to airplanes;
    (3) Ensure that checked baggage is accepted by a responsible agent 
of the foreign air carrier; and
    (4) Prevent cargo and checked baggage from being loaded aboard its 
airplanes unless handled in accordance with the foreign air carrier's 
security procedures.
    (c) Law enforcement support. Each security program required by Sec.  
1546.101(d) must include the procedures used to comply with the 
applicable requirements of Sec.  1546.209 regarding law enforcement 
officers.
    (d) Availability. Each foreign air carrier required to adopt and use 
a security program under this part must--
    (1) Restrict the distribution, disclosure, and availability of 
sensitive security information, as defined in part 1520 of this chapter, 
to persons with a need to know; and
    (2) Refer requests for sensitive security information by other 
persons to TSA.

[67 FR 8377, Feb. 22, 2002, as amended at 71 FR 30512, May 26, 2006]



Sec.  1546.105  Acceptance of and amendments to the security program.

    (a) Initial acceptance of security program. Unless otherwise 
authorized by TSA, each foreign air carrier required to have a security 
program by this part must submit its proposed program to TSA at least 90 
days before the intended date of passenger operations. TSA will notify 
the foreign air carrier of the security program's acceptability, or the 
need to modify the proposed security program for it to be acceptable 
under this part, within 30 days after receiving the proposed security

[[Page 372]]

program. The foreign air carrier may petition TSA to reconsider the 
notice to modify the security program within 30 days after receiving a 
notice to modify.
    (b) Amendment requested by a foreign air carrier. A foreign air 
carrier may submit a request to TSA to amend its accepted security 
program as follows:
    (1) The proposed amendment must be filed with the designated 
official at least 45 calendar days before the date it proposes for the 
amendment to become effective, unless a shorter period is allowed by the 
designated official.
    (2) Within 30 calendar days after receiving a proposed amendment, 
the designated official, in writing, either approves or denies the 
request to amend.
    (3) An amendment to a foreign air carrier security program may be 
approved if the designated official determines that safety and the 
public interest will allow it, and the proposed amendment provides the 
level of security required under this part.
    (4) Within 45 calendar days after receiving a denial, the foreign 
air carrier may petition the Administrator to reconsider the denial. A 
petition for reconsideration must be filed with the designated official.
    (5) Upon receipt of a petition for reconsideration, the designated 
official either approves the request to amend or transmits the petition, 
together with any pertinent information, to the Administrator for 
reconsideration. The Administrator disposes of the petition within 30 
calendar days of receipt by either directing the designated official to 
approve the amendment, or affirming the denial.
    (6) Any foreign air carrier may submit a group proposal for an 
amendment that is on behalf of it and other aircraft operators that co-
sign the proposal.
    (c) Amendment by TSA. If the safety and the public interest require 
an amendment, the designated official may amend an accepted security 
program as follows:
    (1) The designated official notifies the foreign air carrier, in 
writing, of the proposed amendment, fixing a period of not less than 45 
calendar days within which the foreign air carrier may submit written 
information, views, and arguments on the amendment.
    (2) After considering all relevant material, the designated official 
notifies the foreign air carrier of any amendment adopted or rescinds 
the notice. If the amendment is adopted, it becomes effective not less 
than 30 calendar days after the foreign air carrier receives the notice 
of amendment, unless the foreign air carrier petitions the Administrator 
to reconsider no later than 15 calendar days before the effective date 
of the amendment. The foreign air carrier must send the petition for 
reconsideration to the designated official. A timely petition for 
reconsideration stays the effective date of the amendment.
    (3) Upon receipt of a petition for reconsideration, the designated 
official either amends or withdraws the notice or transmits the 
petition, together with any pertinent information, to the Administrator 
for reconsideration. The Administrator disposes of the petition within 
30 calendar days of receipt by either directing the designated official 
to withdraw or amend the amendment, or by affirming the amendment.
    (d) Emergency amendments. If the designated official finds that 
there is an emergency requiring immediate action with respect to safety 
in air transportation or in air commerce that makes procedures in this 
section contrary to the public interest, the designated official may 
issue an amendment, without the prior notice and comment procedures in 
paragraph (c) of this section, effective without stay on the date the 
foreign air carrier receives notice of it. In such a case, the 
designated official will incorporate in the notice a brief statement of 
the reasons and findings for the amendment to be adopted. The foreign 
air carrier may file a petition for reconsideration under paragraph (c) 
of this section; however, this does not stay the effectiveness of the 
emergency amendment.



                          Subpart C_Operations



Sec.  1546.201  Acceptance and screening of individuals and accessible property.

    (a) Preventing or deterring the carriage of any explosive, 
incendiary, or weapon.

[[Page 373]]

Unless otherwise authorized by TSA, each foreign air carrier must use 
the measures in its security program to prevent or deter the carriage of 
any explosive, incendiary, or weapon on or about each individual's 
person or accessible property before boarding an aircraft or entering a 
sterile area.
    (b) Screening of individuals and accessible property. Except as 
provided in its security program, each foreign air carrier must ensure 
that each individual entering a sterile area at each preboard screening 
checkpoint for which it is responsible, and all accessible property 
under that individual's control, are inspected for weapons, explosives, 
and incendiaries as provided in Sec.  1546.207.
    (c) Refusal to transport. Each foreign air carrier conducting an 
operation for which a security program is required by Sec.  1546.101(a), 
(b), or (c) must refuse to transport--
    (1) Any individual who does not consent to a search or inspection of 
his or her person in accordance with the system prescribed in this part; 
and
    (2) Any property of any individual or other person who does not 
consent to a search or inspection of that property in accordance with 
the system prescribed by this part.
    (d) Explosive, incendiary, weapon: Prohibitions and exceptions. No 
individual may, while on board an aircraft being operated by a foreign 
air carrier in the United States, carry on or about his person a deadly 
or dangerous weapon, either concealed or unconcealed. This paragraph (d) 
does not apply to--
    (1) Officials or employees of the state of registry of the aircraft 
who are authorized by that state to carry arms; and
    (2) Crewmembers and other individuals authorized by the foreign air 
carrier to carry arms.



Sec.  1546.202  Persons and property onboard the aircraft.

    Each foreign air carrier operating under Sec.  1546.101(e) or (f) 
must apply the security measures in its security program for persons who 
board the aircraft for transportation, and for their property, to 
prevent or deter the carriage of any unauthorized persons, and any 
unauthorized weapons, explosives, incendiaries, and other destructive 
devices, items, or substances.

[71 FR 30512, May, 26, 2006]



Sec.  1546.203  Acceptance and screening of checked baggage.

    (a) Preventing or deterring the carriage of any explosive or 
incendiary. Each foreign air carrier must use the procedures, 
facilities, and equipment described in its security program to prevent 
or deter the carriage of any unauthorized explosive or incendiary 
onboard aircraft in checked baggage.
    (b) Refusal to transport. Each foreign air carrier must refuse to 
transport any individual's checked baggage or property if the individual 
does not consent to a search or inspection of that checked baggage or 
property in accordance with the system prescribed by this part.
    (c) Firearms in checked baggage. No foreign air carrier may 
knowingly permit any person to transport, nor may any person transport, 
while aboard an aircraft being operated in the United States by that 
carrier, in checked baggage, a firearm, unless:
    (1) The person has notified the foreign air carrier before checking 
the baggage that the firearm is in the baggage; and
    (2) The baggage is carried in an area inaccessible to passengers.



Sec.  1546.205  Acceptance and screening of cargo.

    (a) Preventing or deterring the carriage of any explosive or 
incendiary. Each foreign air carrier operating a program under Sec.  
1546.101(a), (b), (e), or (f) must use the procedures, facilities, and 
equipment described in its security program to prevent or deter the 
carriage of any unauthorized person, and any unauthorized explosive, 
incendiary, and other destructive substance or item in cargo onboard an 
aircraft.
    (b) Refusal to transport. Each foreign air carrier operating a 
program under Sec.  1546.101(a), (b), (e), or (f) must refuse to 
transport any cargo, if the shipper does not consent to a search or 
inspection of that cargo in accordance with the system prescribed by 
this part.
    (c) Control. Each foreign air carrier operating a program under 
Sec.  1546.101(a), (b), or (e) must use the procedures in

[[Page 374]]

its security program to control cargo that it accepts for transport on 
an aircraft in a manner that--
    (1) Prevents the carriage of any unauthorized person, and any 
unauthorized explosive, incendiary, and other destructive substance or 
item onboard the aircraft.
    (2) Prevents access by unauthorized persons other than an authorized 
foreign air carrier employee or agent, or persons authorized by the 
airport operator or host government.
    (d) Screening and inspection of cargo in the United States. For 
cargo to be loaded in the United States, each foreign air carrier 
operating a program under Sec.  1546.101(1)(a), (b), (e), or (f) must 
ensure that cargo is screened and inspected for any unauthorized person, 
and any unauthorized explosive, incendiary, and other destructive 
substances or items as provided in the foreign air carrier's security 
program and Sec.  1546.207, and as provided in Sec.  1546.213 for 
operations under Sec.  1546.101(a) or (b), before loading it on its 
aircraft in the United States.
    (e) Acceptance of cargo only from specified persons. Except as 
otherwise provided in its program, each foreign air carrier operating a 
program under Sec.  1546.101(a), (b), (e) or (f) may accept cargo for 
air transportation to be loaded in the United States only from the 
shipper, or from an aircraft operator, foreign air carrier, or indirect 
air carrier operating under a security program under this chapter with a 
comparable cargo security program, or, in the case of a foreign air 
carrier under Sec.  1546.101(a) or (b), from a certified cargo screening 
facility, as provided in its security program.
    (f) Acceptance of cargo to be loaded for transport to the United 
States. Each foreign air carrier subject to this part that accepts cargo 
to be loaded on its aircraft for transport to the United States must 
carry out the requirements of its security program.
    (g) Screening of cargo loaded inside the United States under Sec.  
1546.101(a) or (b). For cargo to be loaded in the United States, each 
foreign air carrier under Sec.  1546.101(a) or (b) must ensure that all 
cargo is screened in the United States as follows:
    (1) Amount screened. (i) Not later than February 3, 2009, each 
foreign air carrier must ensure that at least 50 percent of its cargo is 
screened prior to transport on a passenger aircraft.
    (ii) Not later than August 3, 2010, each foreign air carrier must 
ensure that 100 percent of its cargo is screened prior to transport on a 
passenger aircraft.
    (2) Methods of screening. For the purposes of this paragraph (g), 
the foreign air carrier must ensure that cargo is screened using a 
physical examination or non-intrusive method of assessing whether cargo 
poses a threat to transportation security, as provided in its security 
program. Such methods may include TSA-approved x-ray systems, explosives 
detection systems, explosives trace detection, explosives detection 
canine teams certified by TSA, a physical search together with manifest 
verification, or other method approved by TSA.
    (3) Limitation on who may conduct screening. Screening must be 
conducted by the foreign air carrier on an airport, by another aircraft 
operator or foreign air carrier operating under a security program under 
this chapter with a comparable cargo security program on an airport with 
a complete program under 49 CFR part 1542, by a certified cargo 
screening facility in accordance with 49 CFR part 1549, or by TSA. If an 
aircraft operator or foreign air carrier screens cargo off an airport, 
it must do so as a certified cargo screening facility in accordance with 
part 1549.
    (4) The foreign air carrier must verify that the chain of custody 
measures for the screened cargo are intact prior to loading such cargo 
on aircraft, or must ensure that the cargo is re-screened in accordance 
with this chapter.

[71 FR 30512, May 26, 2006, as amended at 74 FR 47704, Sept. 16, 2009]



Sec.  1546.207  Screening of individuals and property.

    (a) Applicability of this section. This section applies to the 
inspection of individuals, accessible property, checked baggage, and 
cargo as required under this part.
    (b) Locations within the United States at which TSA conducts 
screening. As required in its security program, each

[[Page 375]]

foreign air carrier must ensure that all individuals or property have 
been inspected by TSA before boarding or loading on its aircraft. This 
paragraph applies when TSA is conducting screening using TSA employees 
or when using companies under contract with TSA.
    (c) Foreign air carrier conducting screening. Each foreign air 
carrier must use the measures in its security program to inspect the 
individual or property. This paragraph does not apply at locations 
identified in paragraphs (b) of this section.



Sec.  1546.209  Use of X-ray systems.

    (a) TSA authorization required. No foreign air carrier may use any 
X-ray system within the United States to screen accessible property or 
checked baggage, unless specifically authorized under its security 
program. No foreign air carrier may use such a system in a manner 
contrary to its security program. TSA authorizes foreign air carriers to 
use X-ray systems for inspecting accessible property or checked baggage 
under a security program if the foreign air carrier shows that--
    (1) The system meets the standards for cabinet X-ray systems 
primarily for the inspection of baggage issued by the Food and Drug 
Administration (FDA) and published in 21 CFR 1020.40;
    (2) A program for initial and recurrent training of operators of the 
system is established, which includes training in radiation safety, the 
efficient use of X-ray systems, and the identification of weapons, 
explosives, and incendiaries; and
    (3) The system meets the imaging requirements set forth in its 
security program using the step wedge specified in American Society for 
Testing Materials (ASTM) Standard F792-88 (Reapproved 1993). This 
standard is incorporated by reference in paragraph (g) of this section.
    (b) Annual radiation survey. No foreign air carrier may use any X-
ray system unless, within the preceding 12 calendar months, a radiation 
survey is conducted that shows that the system meets the applicable 
performance standards in 21 CFR 1020.40.
    (c) Radiation survey after installation or moving. No foreign air 
carrier may use any X-ray system after the system has been installed at 
a screening point or after the system has been moved unless a radiation 
survey is conducted which shows that the system meets the applicable 
performance standards in 21 CFR 1020.40. A radiation survey is not 
required for an X-ray system that is designed and constructed as a 
mobile unit and the foreign air carrier shows that it can be moved 
without altering its performance.
    (d) Defect notice or modification order. No foreign air carrier may 
use any X-ray system that is not in full compliance with any defect 
notice or modification order issued for that system by the FDA, unless 
the FDA has advised TSA that the defect or failure to comply does not 
create a significant risk of injury, including genetic injury, to any 
person.
    (e) Signs and inspection of photographic equipment and film. (1) At 
locations at which a foreign air carrier uses an X-ray system to inspect 
accessible property the foreign air carrier must ensure that a sign is 
posted in a conspicuous place at the screening checkpoint.
    (2) At locations at which a foreign air carrier or TSA uses an X-ray 
system to inspect checked baggage the foreign air carrier must ensure 
that a sign is posted in a conspicuous place where the foreign air 
carrier accepts checked baggage.
    (3) The signs required under this paragraph must notify individuals 
that such items are being inspected by an X-ray and advise them to 
remove all X-ray, scientific, and high-speed film from accessible 
property and checked baggage before inspection. This sign must also 
advise individuals that they may request that an inspection be made of 
their photographic equipment and film packages without exposure to an X-
ray system. If the X-ray system exposes any accessible property or 
checked baggage to more than one milliroentgen during the inspection, 
the sign must advise individuals to remove film of all kinds from their 
articles before inspection.
    (4) If requested by individuals, their photographic equipment and 
film packages must be inspected without exposure to an X-ray system.

[[Page 376]]

    (f) Radiation survey verification after installation or moving. Each 
foreign air carrier must maintain at least one copy of the results of 
the most recent radiation survey conducted under paragraph (b) or (c) of 
this section and must make it available for inspection upon request by 
TSA at each of the following locations--
    (1) The foreign air carrier's principal business office; and
    (2) The place where the X-ray system is in operation.
    (g) Incorporation by reference. The American Society for Testing and 
Materials (ASTM) Standard F792-88 (Reapproved 1993), ``Standard Practice 
for Design and Use of Ionizing Radiation Equipment for the Detection of 
Items Prohibited in Controlled Access Areas,'' is approved for 
incorporation by reference by the Director of the Federal Register 
pursuant to 5 U.S.C. 552(a) and 1 CFR part 51. ASTM Standard F792-88 may 
be examined at the Department of Transportation (DOT) Docket, 400 
Seventh Street SW, Room Plaza 401, Washington, DC 20590, or on DOT's 
Docket Management System (DMS) web page at http://dms.dot.gov/search 
(under docket number FAA-2001-8725). Copies of the standard may be 
examined also at the National Archives and Records Administration 
(NARA). For information on the availability of this material at NARA, 
call 202-741-6030, or go to: http://www.archives.gov/federal--register/
code--of--federal--regulations/ibr--locations.html. In addition, ASTM 
Standard F792-88 (Reapproved 1993) may be obtained from the American 
Society for Testing and Materials, 100 Barr Harbor Drive, West 
Conshohocken, PA 19428-2959.
    (h) Each foreign air carrier must comply with the X-ray operator 
duty time limitations specified in its security program.

[67 FR 8377, Feb. 22, 2002, as amended at 69 FR 18803, Apr. 9, 2004]



Sec.  1546.211  Law enforcement personnel.

    (a) At airports within the United States not governed by part 1542 
of this chapter, each foreign air carrier engaging in public charter 
passenger operations must--
    (1) When using a screening system required by Sec.  1546.101(a), 
(b), or (c), provide for law enforcement officers meeting the 
qualifications and standards, and in the number and manner, specified in 
part 1542; and
    (2) When using an airplane having a passenger seating configuration 
of 31 or more but 60 or fewer seats for which a screening system is not 
required by Sec.  1546.101(a), (b), or (c), arrange for law enforcement 
officers meeting the qualifications and standards specified in part 1542 
of this chapter to be available to respond to an incident and provide to 
appropriate employees, including crewmembers, current information with 
respect to procedures for obtaining law enforcement assistance at that 
airport.
    (b) At airports governed by part 1542 of this chapter, each foreign 
air carrier engaging in scheduled passenger operations or public charter 
passenger operations when using an airplane with a passenger seating 
configuration of 31 or more and 60 or fewer seats under Sec.  
1546.101(c), must arrange for law enforcement personnel meeting the 
qualifications and standards specified in part 1542 of this chapter to 
be available to respond to an incident and provide to appropriate 
employees, including crewmembers, current information with respect to 
procedures for obtaining law enforcement assistance at that airport.



Sec.  1546.213  Access to cargo: Security threat assessments for cargo personnel in the United States.

    This section applies in the United States to each foreign air 
carrier operating under Sec.  1546.101(a), (b), or (e).
    (a) Before a foreign air carrier authorizes and before an individual 
performs a function described in paragraph (b) of this section--
    (1) Each individual must successfully complete a security threat 
assessment or comparable security threat assessment described in part 
1540 subpart C of this chapter; and
    (2) Each aircraft operator must complete the requirements in part 
1540 subpart C.
    (b) The security threat assessment required in paragraph (a) of this 
section applies to the following:

[[Page 377]]

    (1) Each individual who has unescorted access to cargo and access to 
information that such cargo will be transported on a passenger aircraft; 
or who has unescorted access to cargo that has been screened for 
transport on a passenger aircraft; or who performs certain functions 
related to the transportation, dispatch or security of cargo for 
transport on a passenger aircraft or all-cargo aircraft, as specified in 
the foreign air craft operator's or foreign air carrier's security 
program; from the time--
    (i) The cargo reaches a location where a foreign air carrier 
operating under Sec.  1546.101(e) consolidates or inspects it pursuant 
to security program requirements, until the cargo enters an airport 
Security Identification Display Area or is transferred to another TSA-
regulated aircraft operator, foreign air carrier, or indirect air 
carrier; or
    (ii) A foreign air carrier under Sec. Sec.  1546.101(a) or (b) 
accepts the cargo, until the cargo--
    (A) Enters an airport Security Identification Display Area;
    (B) Is removed from the destination airport; or
    (C) Is transferred to another TSA-regulated aircraft operator, 
foreign air carrier, or indirect air carrier.
    (2) Each individual the foreign air carrier authorizes to screen 
cargo or to supervise the screening of cargo under Sec.  1546.205.

[74 FR 47705, Sept. 16, 2009]



Sec.  1546.215  Known shipper program.

    This section applies to each foreign air carrier operating a program 
under Sec.  1546.101(a) or (b).
    (a) For cargo to be loaded on its aircraft in the United States, 
each foreign air carrier must have and carry out a known shipper program 
in accordance with its security program. The program must--
    (1) Determine the shipper's validity and integrity as provided in 
the foreign air carrier's security program;
    (2) Provide that the foreign air carrier will separate known shipper 
cargo from unknown shipper cargo; and
    (3) Provide for the foreign air carrier to ensure that cargo is 
screened or inspected as set forth in its security program.
    (b) When required by TSA, each foreign air carrier must submit in a 
form and manner acceptable to TSA--
    (1) Information identified in its security program regarding an 
applicant to be a known shipper or a known shipper; and
    (2) Corrections and updates to the information upon learning of a 
change to the information specified in paragraph (b)(1) of this section.

[71 FR 30512, May 26, 2006]



                  Subpart D_Threat and Threat Response



Sec.  1546.301  Bomb or air piracy threats.

    No foreign air carrier may land or take off an airplane in the 
United States after receiving a bomb or air piracy threat against that 
airplane, unless the following actions are taken:
    (a) If the airplane is on the ground when a bomb threat is received 
and the next scheduled flight of the threatened airplane is to or from a 
place in the United States, the foreign air carrier ensures that the 
pilot in command is advised to submit the airplane immediately for a 
security inspection and an inspection of the airplane is conducted 
before the next flight.
    (b) If the airplane is in flight to a place in the United States 
when a bomb threat is received, the foreign air carrier ensures that the 
pilot in command is advised immediately to take the emergency action 
necessary under the circumstances and a security inspection of the 
airplane is conducted immediately after the next landing.
    (c) If information is received of a bomb or air piracy threat 
against an airplane engaged in an operation specified in paragraph (a) 
or (b) of this section, the foreign air carrier ensures that 
notification of the threat is given to the appropriate authorities of 
the State in whose territory the airplane is located or, if in flight, 
the appropriate authorities of the State in whose territory the airplane 
is to land.

[67 FR 8377, Feb. 22, 2002, as amended at 71 FR 30513, May 26, 2006]

[[Page 378]]



Subpart E_Screener Qualifications When the Foreign Air Carrier Conducts 
                                Screening



Sec.  1546.401  Applicability of this subpart.

    This subpart applies when the aircraft operator is conducting 
inspections as provided in Sec.  1546.207.

[74 FR 47705, Sept. 16, 2009]



Sec.  1546.403  [Reserved]



Sec.  1546.405  Qualifications of screening personnel.

    (a) No individual subject to this subpart may perform a screening 
function unless that individual has the qualifications described in 
Sec. Sec.  1546.405 through 1546.411. No foreign air carrier may use 
such an individual to perform a screening function unless that person 
complies with the requirements of Sec. Sec.  1546.405 through 1546.411.
    (b) A screener must have a satisfactory or better score on a 
screener selection test administered by TSA.
    (c) A screener must be a citizen of the United States.
    (d) A screener must have a high school diploma, a General 
Equivalency Diploma, or a combination of education and experience that 
TSA has determined to be sufficient for the individual to perform the 
duties of the position.
    (e) A screener must have basic aptitudes and physical abilities 
including color perception, visual and aural acuity, physical 
coordination, and motor skills to the following standards:
    (1) Screeners operating screening equipment must be able to 
distinguish on the screening equipment monitor the appropriate imaging 
standard specified in the foreign air carrier's security program.
    (2) Screeners operating any screening equipment must be able to 
distinguish each color displayed on every type of screening equipment 
and explain what each color signifies.
    (3) Screeners must be able to hear and respond to the spoken voice 
and to audible alarms generated by screening equipment at an active 
screening location.
    (4) Screeners who perform physical searches or other related 
operations must be able to efficiently and thoroughly manipulate and 
handle such baggage, containers, cargo, and other objects subject to 
screening.
    (5) Screeners who perform pat-downs or hand-held metal detector 
searches of individuals must have sufficient dexterity and capability to 
thoroughly conduct those procedures over an individual's entire body.
    (f) A screener must have the ability to read, speak, and write 
English well enough to--
    (1) Carry out written and oral instructions regarding the proper 
performance of screening duties;
    (2) Read English language identification media, credentials, airline 
tickets, documents, air waybills, invoices, and labels on items normally 
encountered in the screening process;
    (3) Provide direction to and understand and answer questions from 
English-speaking individuals undergoing screening; and
    (4) Write incident reports and statements and log entries into 
security records in the English language.
    (g) At locations outside the United States that are the last point 
of departure to the United States, and where the foreign air carrier has 
operational control over a screening function, the foreign air carrier 
may use screeners who do not meet the requirements of paragraph (f) of 
this section. At such locations the foreign air carrier may use 
screeners who are not United States citizens.



Sec.  1546.407  Training, testing, and knowledge of individuals who perform screening functions.

    (a) Training required. Before performing screening functions, an 
individual must have completed initial, recurrent, and appropriate 
specialized training as specified in this section and the foreign air 
carrier's security program. No foreign air carrier may use any screener, 
screener in charge, or checkpoint security supervisor unless that 
individual has satisfactorily completed the required training. This 
paragraph does not prohibit the performance of screening functions 
during on-the-job training as provided in Sec.  1544.409(b).

[[Page 379]]

    (b) Use of training programs. Training for screeners must be 
conducted under programs provided by TSA. Training programs for 
screeners-in-charge and checkpoint security supervisors must be 
conducted in accordance with the foreign air carrier's security program.
    (c) Classroom instruction. Each screener must complete at least 40 
hours of classroom instruction or successfully complete a program that 
TSA determines will train individuals to a level of proficiency 
equivalent to the level that would be achieved by such classroom 
instruction.
    (d) Screener readiness test. Before beginning on-the-job training, a 
screener trainee must pass the screener readiness test prescribed by 
TSA.
    (e) On-the-job training and testing. Each screener must complete at 
least 60 hours of on-the-job training and must pass an on-the-job 
training test prescribed by TSA. No foreign air carrier may permit a 
screener trainee to exercise independent judgment as a screener, until 
the individual passes an on-the-job training test prescribed by TSA.
    (f) Knowledge requirements. Each foreign air carrier must ensure 
that individuals performing as screeners, screeners-in-charge, and 
checkpoint security supervisors for the foreign air carrier have 
knowledge of the provisions of this part, the foreign air carrier's 
security program, and applicable emergency amendments to the foreign air 
carrier's security program to the extent necessary to perform their 
duties.



Sec.  1546.409  Integrity of screener tests.

    (a) Cheating or other unauthorized conduct. (1) Except as authorized 
by TSA, no person may--
    (i) Copy or intentionally remove a test under this part;
    (ii) Give to another or receive from another any part or copy of 
that test;
    (iii) Give help on that test to or receive help on that test from 
any person during the period that the test is being given; or
    (iv) Use any material or aid during the period that the test is 
being given.
    (2) No person may take any part of that test on behalf of another 
person.
    (3) No person may cause, assist, or participate intentionally in any 
act prohibited by this paragraph (a).
    (b) Administering and monitoring screener tests. (1) Each foreign 
air carrier must notify TSA of the time and location at which it will 
administer each screener readiness test required under Sec.  1544.405 
(d).
    (2) Either TSA or the foreign air carrier must administer and 
monitor the screener readiness test. Where more than one foreign air 
carrier or foreign air carrier uses a screening location, TSA may 
authorize an employee of one or more of the foreign air carriers or 
foreign air carriers to monitor the test for a trainee who will screen 
at that location.
    (3) If TSA or a representative of TSA is not available to administer 
and monitor a screener readiness test, the foreign air carrier must 
provide a direct employee to administer and monitor the screener 
readiness test.
    (4) An foreign air carrier employee who administers and monitors a 
screener readiness test must not be an instructor, screener, screener-
in-charge, checkpoint security supervisor, or other screening 
supervisor. The employee must be familiar with the procedures for 
administering and monitoring the test and must be capable of observing 
whether the trainee or others are engaging in cheating or other 
unauthorized conduct.



Sec.  1546.411  Continuing qualifications of screening personnel.

    (a) Impairment. No individual may perform a screening function if he 
or she shows evidence of impairment, such as impairment due to illegal 
drugs, sleep deprivation, medication, or alcohol.
    (b) Training not complete. An individual who has not completed the 
training required by Sec.  1546.405 may be deployed during the on-the-
job portion of training to perform security functions provided that the 
individual--
    (1) Is closely supervised; and
    (2) Does not make independent judgments as to whether individuals or 
property may enter a sterile area or aircraft without further 
inspection.
    (c) Failure of operational test. No foreign air carrier may use an 
individual

[[Page 380]]

to perform a screening function after that individual has failed an 
operational test related to that function, until that individual has 
successfully completed the remedial training specified in the foreign 
air carrier's security program.
    (d) Annual proficiency review. Each individual assigned screening 
duties shall receive an annual evaluation. The foreign air carrier must 
conduct and document an annual evaluation of each individual who 
performs screening functions. An individual who performs screening 
functions may not continue to perform such functions unless the 
evaluation demonstrates that the individual--
    (1) Continues to meet all qualifications and standards required to 
perform a screening function;
    (2) Has a satisfactory record of performance and attention to duty 
based on the standards and requirements in the foreign air carrier's 
security program; and
    (3) Demonstrates the current knowledge and skills necessary to 
courteously, vigilantly, and effectively perform screening functions.



PART 1548_INDIRECT AIR CARRIER SECURITY--Table of Contents



Sec.
1548.1 Applicability of this part.
1548.3 TSA inspection authority.
1548.5 Adoption and implementation of the security program.
1548.7 Approval, amendment, annual renewal, and withdrawal of approval 
          of the security program.
1548.9 Acceptance of cargo.
1548.11 Training and knowledge for individuals with security-related 
          duties.
1548.13 Security coordinators.
1548.15 Access to cargo: Security threat assessments for individuals 
          having unescorted access to cargo.
1548.16 Security threat assessments for each proprietor, general 
          partner, officer, director, and certain owners of the entity.
1548.17 Known shipper program.
1548.19 Security Directives and Information Circulars.
1548.21 Screening of cargo.

    Authority: 49 U.S.C. 114, 5103, 40113, 44901-44905, 44913-44914, 
44916-44917, 44932, 44935-44936, 46105.

    Source: 67 FR 8382, Feb. 22, 2002, unless otherwise noted.



Sec.  1548.1  Applicability of this part.

    This part prescribes aviation security rules governing each indirect 
air carrier engaged indirectly in the air transportation of property on 
aircraft.

[67 FR 8382, Feb. 22, 2002, as amended at 71 FR 33255, June 8, 2006]



Sec.  1548.3  TSA inspection authority.

    (a) Each indirect air carrier must allow TSA, at any time or place, 
to make any inspections or tests, including copying records, to 
determine compliance of an airport operator, aircraft operator, foreign 
air carrier, indirect air carrier, or airport tenant with--
    (1) This subchapter, and any security program approved under this 
subchapter, and part 1520 of this chapter; and
    (2) 49 U.S.C. Subtitle VII, as amended.
    (b) At the request of TSA, each indirect air carrier must provide 
evidence of compliance with this subchapter and its indirect air carrier 
security program, including copies of records.
    (c) TSA may enter and be present within areas where security 
measures required by TSA are carried out without access media or 
identification media issued or approved by the indirect air carrier, an 
airport operator, or aircraft operator, in order to inspect or test 
compliance, or perform other such duties as TSA may direct.

[67 FR 8382, Feb. 22, 2002, as amended at 71 FR 30513, May 26, 2006]



Sec.  1548.5  Adoption and implementation of the security program.

    (a) Security program required. No indirect air carrier may offer 
cargo to an aircraft operator operating under a full program or a full 
all-cargo program specified in part 1544 of this subchapter, or to a 
foreign air carrier operating under a program under Sec.  1546.101(a), 
(b), or (e) of this subchapter, unless that indirect air carrier has and 
carries out an approved security program under this part. Each indirect 
air carrier that does not currently hold a security program under part 
1548, and that offers cargo to an aircraft operator operating under a 
full all-cargo program or a comparable operation by a foreign air 
carrier must

[[Page 381]]

comply with this section not later than December 1, 2006.
    (b) General requirements. (1) The security program must provide for 
the security of the aircraft, as well as that of persons and property 
traveling in air transportation against acts of criminal violence and 
air piracy and against the introduction into the aircraft of any 
unauthorized person, and any unauthorized explosive, incendiary, and 
other destructive substance or item as provided in the indirect air 
carrier's security program. This requirement applies--
    (i) From the time the indirect air carrier accepts the cargo to the 
time it transfers the cargo to an entity that is not an employee or 
agent of the indirect air carrier;
    (ii) While the cargo is stored, en route, or otherwise being handled 
by an employee or agent of the indirect air carrier; and
    (iii) Regardless of whether the indirect air carrier has or ever had 
physical possession of the cargo.
    (2) The indirect air carrier must ensure that its employees and 
agents carry out the requirements of this chapter and the indirect air 
carrier's security program.
    (c) Content. Each security program under this part must--
    (1) Be designed to prevent or deter the introduction of any 
unauthorized person, and any unauthorized explosive, incendiary, and 
other destructive substance or item onto an aircraft.
    (2) Include the procedures and description of the facilities and 
equipment used to comply with the requirements of Sec. Sec.  1548.9 and 
1548.17 regarding the acceptance and offering of cargo.
    (3) Include the procedures and syllabi used to accomplish the 
training required under Sec.  1548.11 of persons who accept, handle, 
transport, or deliver cargo on behalf of the indirect air carrier.
    (d) Availability. Each indirect air carrier having a security 
program must:
    (1) Maintain an original of the security program at its corporate 
office.
    (2) Have accessible a complete copy, or the pertinent portions of 
its security program, or appropriate implementing instructions, at each 
office where cargo is accepted. An electronic version is adequate.
    (3) Make a copy of the security program available for inspection 
upon the request of TSA.
    (4) Restrict the distribution, disclosure, and availability of 
information contained in its security program to persons with a need to 
know, as described in part 1520 of this chapter.
    (5) Refer requests for such information by other persons to TSA.

[67 FR 8382, Feb. 22, 2002, as amended at 71 FR 30513, May 26, 2006; 71 
FR 31964, June 2, 2006]



Sec.  1548.7  Approval, amendment, annual renewal, and withdrawal of approval of the security program.

    (a) Original Application--(1) Application. The applicant must apply 
for a security program in a form and a manner prescribed by TSA not less 
than 90 calendar days before the applicant intends to begin operations. 
The application must be in writing and include:
    (i) The business name; other names, including doing business as; 
state of incorporation, if applicable; and tax identification number.
    (ii) The applicant names, addresses, and dates of birth of each 
proprietor, general partner, officer, director, and owner identified 
under Sec.  1548.16.
    (iii) A signed statement from each person listed in paragraph 
(a)(1)(ii) of this section stating whether he or she has been a 
proprietor, general partner, officer, director, or owner of an IAC that 
had its security program withdrawn by TSA.
    (iv) Copies of government-issued identification of persons listed in 
paragraph (a)(1)(ii) of this section.
    (v) Addresses of all business locations in the United States.
    (vi) A statement declaring whether the business is a ``'small 
business''' pursuant to section 3 of the Small Business Act (15 U.S.C. 
632).
    (vii) A statement acknowledging and ensuring that each employee and 
agent of the indirect air carrier, who is subject to training under 
Sec.  1548.11, will have successfully completed the training outlined in 
its security program before performing security-related duties.

[[Page 382]]

    (viii) Other information requested by TSA concerning Security Threat 
Assessments.
    (ix) A statement acknowledging and ensuring that each employee and 
agent will successfully complete a Security Threat Assessment under 
Sec.  1548.15 before authorizing the individual to have unescorted 
access to cargo.
    (2) Approval. TSA will approve the security program by providing the 
indirect air carrier with the Indirect Air Carrier Standard Security 
Program and any Security Directive upon determining that--
    (i) The indirect air carrier has met the requirements of this part, 
its security program, and any applicable Security Directive;
    (ii) The approval of its security program is not contrary to the 
interests of security and the public interest; and
    (iii) The indirect air carrier has not held a security program that 
was withdrawn within the previous year, unless otherwise authorized by 
TSA.
    (3) Commencement of operations. The indirect air carrier may operate 
under a security program when it meets all requirements, including but 
not limited to successful completion of training and Security Threat 
Assessments by relevant personnel.
    (4) Duration of security program. The security program will remain 
effective until the end of the calendar month one year after the month 
it was approved.
    (5) Requirement to report changes in information. Each indirect air 
carrier with an approved security program under this part must notify 
TSA, in a form and manner approved by TSA, of any changes to the 
information submitted during its initial application.
    (i) This notification must be submitted to the designated official 
not later than 30 days after the date the change occurred.
    (ii) Changes included in the requirement of this paragraph include, 
but are not limited to, changes in the indirect air carrier's contact 
information, owners, business addresses and locations, and form of 
business entity.
    (b) Renewal Application. Upon timely submittal of an application for 
renewal, and unless and until TSA denies the application, the indirect 
air carrier's approved security program remains in effect.
    (1) Unless otherwise authorized by TSA, each indirect air carrier 
that has a security program under this part must timely submit to TSA, 
at least 30 calendar days prior to the first day of the anniversary 
month of initial approval of its security program, an application for 
renewal of its security program in a form and a manner approved by TSA.
    (2) The application for renewal must be in writing and include a 
signed statement that the indirect air carrier has reviewed and ensures 
the continuing accuracy of the contents of its initial application for a 
security program, subsequent renewal applications, or other submissions 
to TSA confirming a change of information and noting the date such 
applications and submissions were sent to TSA, including the following 
certification:

    [Name of indirect air carrier] (hereinafter ``the IAC'') has adopted 
and is currently carrying out a security program in accordance with the 
Transportation Security Regulations as originally approved on [Insert 
date of TSA initial approval]. In accordance with TSA regulations, the 
IAC has notified TSA of any new or changed information required for the 
IAC's initial security program. If new or changed information is being 
submitted to TSA as part of this application for reapproval, that 
information is stated in this filing.
    The IAC understands that intentional falsification of certification 
to an air carrier or to TSA may be subject to both civil and criminal 
penalties under 49 CFR 1540 and 1548 and 18 U.S.C. 1001. Failure to 
notify TSA of any new or changed information required for initial 
approval of the IAC's security program in a timely fashion and in a form 
acceptable to TSA may result in withdrawal by TSA of approval of the 
IAC's security program.

    (3) TSA will renew approval of the security program if TSA 
determines that--
    (i) The indirect air carrier has met the requirements of this 
chapter, its security program, and any Security Directive; and
    (ii) The renewal of its security program is not contrary to the 
interests of security and the public interest.
    (4) If TSA determines that the indirect air carrier meets the 
requirements of paragraph (b)(3) of this section, it

[[Page 383]]

will renew the indirect air carrier's security program. The security 
program will remain effective until the end of the calendar month one 
year after the month it was renewed.
    (c) Amendment requested by an indirect air carrier or applicant. An 
indirect air carrier or applicant may file a request for an amendment to 
its security program with the TSA designated official at least 45 
calendar days before the date it proposes for the amendment to become 
effective, unless the designated official allows a shorter period. Any 
indirect air carrier may submit a group proposal for an amendment that 
is on behalf of it and other indirect air carriers that co-sign the 
proposal.
    (1) Within 30 calendar days after receiving a proposed amendment, 
the designated official, in writing, either approves or denies the 
request to amend.
    (2) An amendment to an indirect air carrier security program may be 
approved, if the designated official determines that safety and the 
public interest will allow it, and if the proposed amendment provides 
the level of security required under this part.
    (3) Within 30 calendar days after receiving a denial of the proposed 
amendment, the indirect air carrier may petition TSA to reconsider the 
denial. A petition for reconsideration must be filed with the designated 
official.
    (4) Upon receipt of a petition for reconsideration, the designated 
official either approves the request to amend or transmits the petition, 
together with any pertinent information, to the TSA for reconsideration. 
TSA will dispose of the petition within 30 calendar days of receipt by 
either directing the designated official to approve the amendment or by 
affirming the denial.
    (d) Amendment by TSA. TSA may amend a security program in the 
interest of safety and the public interest, as follows:
    (1) TSA notifies the indirect air carrier, in writing, of the 
proposed amendment, fixing a period of not less than 30 calendar days 
within which the indirect air carrier may submit written information, 
views, and arguments on the amendment.
    (2) After considering all relevant material, the designated official 
notifies the indirect air carrier of any amendment adopted or rescinds 
the notice of amendment. If the amendment is adopted, it becomes 
effective not less than 30 calendar days after the indirect air carrier 
receives the notice of amendment, unless the indirect air carrier 
disagrees with the proposed amendment and petitions the TSA to 
reconsider, no later than 15 calendar days before the effective date of 
the amendment. The indirect air carrier must send the petition for 
reconsideration to the designated official. A timely petition for 
reconsideration stays the effective date of the amendment.
    (3) Upon receipt of a petition for reconsideration, the designated 
official either amends or withdraws the notice of amendment, or 
transmits the petition, together with any pertinent information, to TSA 
for reconsideration. TSA disposes of the petition within 30 calendar 
days of receipt, either by directing the designated official to withdraw 
or amend the notice of amendment, or by affirming the notice of 
amendment.
    (e)  Emergency Amendments. (1) If TSA finds that there is an 
emergency requiring immediate action, with respect to aviation security 
that makes procedures in this section contrary to the public interest, 
the designated official may issue an emergency amendment, without the 
prior notice and comment procedures described in paragraph (d) of this 
section.
    (2) The emergency amendment is effective without stay on the date 
the indirect air carrier receives notification. TSA will incorporate in 
the notification a brief statement of the reasons and findings for the 
emergency amendment to be adopted.
    (3) The indirect air carrier may file a petition for reconsideration 
with the TSA no later than 15 calendar days after TSA issued the 
emergency amendment. The indirect air carrier must send the petition for 
reconsideration to the designated official; however, the filing does not 
stay the effective date of the emergency amendment.

[[Page 384]]

    (f) Withdrawal of approval of a security program. Section 1540.301 
includes procedures for withdrawal of approval of a security program.
    (g) Service of documents for withdrawal of approval of security 
program proceedings. Service may be accomplished by personal delivery, 
certified mail, or express courier. Documents served on an indirect air 
carrier will be served at the indirect air carrier's official place of 
business as designated in its application for approval or its security 
program. Documents served on TSA must be served to the address noted in 
the notice of withdrawal of approval or withdrawal of approval, 
whichever is applicable.
    (1) Certificate of service. An individual may attach a certificate 
of service to a document tendered for filing. A certificate of service 
must consist of a statement, dated and signed by the person filing the 
document, that the document was personally delivered, served by 
certified mail on a specific date, or served by express courier on a 
specific date.
    (2) Date of service. The date of service will be--
    (i) The date of personal delivery;
    (ii) If served by certified mail, the mailing date shown on the 
certificate of service, the date shown on the postmark, if there is no 
certificate of service, or other mailing date shown by other evidence if 
there is no certificate of service or postmark; or
    (iii) If served by express courier, the service date shown on the 
certificate of service, or by other evidence if there is no certificate 
of service.
    (h) Extension of time. TSA may grant an extension of time of the 
limits set forth in this section for good cause shown. An indirect air 
carrier's request for an extension of time must be in writing and be 
received by TSA at least 2 days before the due date to be extended. TSA 
may grant itself an extension of time for good cause.

[71 FR 30513, May 26, 2006, as amended at 74 FR 47705, Sept. 16, 2009]



Sec.  1548.9  Acceptance of cargo.

    (a) Preventing or deterring the carriage of any explosive or 
incendiary. Each indirect air carrier must use the facilities, 
equipment, and procedures described in its security program to prevent 
or deter the carriage onboard an aircraft of any unauthorized person, 
and any unauthorized explosive, incendiary, and other destructive 
substance or item, as provided in the indirect air carrier's security 
program.
    (b) Refusal to transport. Each indirect air carrier must refuse to 
offer for transport on an aircraft any cargo, if the shipper does not 
consent to a search or inspection of that cargo in accordance with this 
part, or parts 1544 or 1546 of this chapter.

[71 FR 30515, May 26, 2006]



Sec.  1548.11  Training and knowledge for individuals with security-related duties.

    (a) No indirect air carrier may use an employee or agent to perform 
any security-related duties to meet the requirements of its security 
program, unless that individual has received training, as specified in 
its security program, including his or her personal responsibilities in 
Sec.  1540.105 of this chapter.
    (b) Each indirect air carrier must ensure that each of its 
authorized employees or agents who accept, handle, transport, or deliver 
cargo have knowledge of the--
    (1) Applicable provisions of this part;
    (2) Applicable Security Directives and Information Circulars;
    (3) The approved airport security program(s) applicable to their 
location(s); and
    (4) The aircraft operator's or indirect air carrier's security 
program, to the extent necessary in order to perform their duties.
    (c) Each indirect air carrier must ensure that each of its 
authorized employees or agents under paragraph (b) of this section 
successfully completes recurrent training at least annually on their 
individual responsibilities in--
    (1) Section 1540.105 of this chapter;
    (2) The applicable provisions of this part;
    (3) Applicable Security Directives and Information Circulars;
    (4) The approved airport security program(s) applicable to their 
location(s); and
    (5) The aircraft operator's or indirect air carrier's security 
program, to the extent that such individuals need to know in order to 
perform their duties.

[[Page 385]]

    (d) Operators must comply with the requirements of this section not 
later than November 22, 2006, for direct employees and not later than 
June 15, 2007, for agents.

[71 FR 30515, May 26, 2006, as amended at 71 FR 62549, Oct. 25, 2006]



Sec.  1548.13  Security coordinators.

    Each indirect air carrier must designate and use an Indirect Air 
Carrier Security Coordinator (IACSC). The IACSC and alternates must be 
appointed at the corporate level and must serve as the indirect air 
carrier's primary contact for security-related activities and 
communications with TSA, as set forth in the security program. Either 
the IACSC or an alternate IACSC must be available on a 24-hour basis.

[71 FR 30515, May 26, 2006]



Sec.  1548.15  Access to cargo: Security threat assessments for individuals having unescorted access to cargo.

    (a) Before an aircraft operator authorizes and before an individual 
performs a function described in paragraph (b) of this section--
    (1) Each individual must successfully complete a security threat 
assessment or comparable security threat assessment described in part 
1540 subpart C of this chapter; and
    (2) Each aircraft operator must complete the requirements in part 
1540 subpart C.
    (b) The security threat assessment required in paragraph (a) of this 
section applies to the following:
    (1) Each individual who has unescorted access to cargo and access to 
information that such cargo will be transported on a passenger aircraft; 
or who has unescorted access to cargo screened for transport on a 
passenger aircraft; or who performs certain functions related to the 
transportation, dispatch or security of cargo for transport on a 
passenger aircraft or all-cargo aircraft, as specified in the indirect 
air carrier's security program; from the time--
    (i) Cargo to be transported on an all-cargo aircraft operated by an 
aircraft operator with a full all-cargo program under Sec.  1544.101(h) 
of this chapter, or by a foreign air carrier under Sec.  1546.101(e) of 
this chapter, reaches an indirect air carrier facility where the 
indirect air carrier consolidates or holds the cargo, until the indirect 
air carrier transfers the cargo to an aircraft operator or foreign air 
carrier; or
    (ii) Cargo to be transported on a passenger aircraft operated by an 
aircraft operator with a full program under Sec.  1544.101(a) or by a 
foreign air carrier under Sec.  1546.101(a) or (b) of this chapter, is 
accepted by the indirect air carrier, until the indirect air carrier 
transfers the cargo to an aircraft operator or foreign air carrier.
    (2) Each individual the indirect air carrier authorizes to screen 
cargo or to supervise the screening of cargo under Sec.  1548.21.

[74 FR 47705, Sept. 16, 2009]



Sec.  1548.16  Security threat assessments for each proprietor, general partner, officer, director, and certain owners of the entity.

    (a) Before an indirect air carrier permits a proprietor, general 
partner, officer, director, or owner of the entity to perform those 
functions--
    (1) The proprietor, general partner, officer, director, or owner of 
the entity must successfully complete a security threat assessment or 
comparable security threat assessment described in part 1540 subpart C 
of this chapter; and
    (2) Each indirect air carrier must complete the requirements in 49 
CFR part 1540, subpart C.
    (b) For purposes of this section, owner means--
    (1) A person who directly or indirectly owns, controls, or has power 
to vote 25 percent or more of any class of voting securities or other 
voting interests of an IAC or applicant to be an IAC; or
    (2) A person who directly or indirectly controls in any manner the 
election of a majority of the directors (or individuals exercising 
similar functions) of an IAC, or applicant to be an IAC.
    (c) For purposes of this definition of owner--
    (1) Members of the same family must be considered to be one person.
    (i) Same family means parents, spouses, children, siblings, uncles,

[[Page 386]]

aunts, grandparents, grandchildren, first cousins, stepchildren, 
stepsiblings, and parents-in-law, and spouses of any of the foregoing.
    (ii) Each member of the same family, who has an ownership interest 
in an IAC, or an applicant to be an IAC, must be identified if the 
family is an owner as a result of aggregating the ownership interests of 
the members of the family.
    (iii) In determining the ownership of interests of the same family, 
any voting interest of any family member must be taken into account.
    (2) Voting securities or other voting interests means securities or 
other interests that entitle the holder to vote for or select directors 
(or individuals exercising similar functions).
    (d) Each indirect air carrier, or applicant to be an indirect air 
carrier, must ensure that each proprietor, general partner, officer, 
director and owner of the entity has successfully completed a Security 
Threat Assessment under part 1540, subpart C, of this chapter not later 
than a date to be specified by TSA in a future rule in the Federal 
Register.

[71 FR 30516, May 26, 2006; 71 FR 31965, June 2, 2006, as amended at 71 
FR 62550, Oct. 25, 2006; 72 FR 13026, Mar. 20, 2007; 74 FR 47706, Sept. 
16, 2009]



Sec.  1548.17  Known shipper program.

    This section applies to cargo that an indirect air carrier offers to 
an aircraft operator operating under a full program under Sec.  
1544.101(a) of this chapter, or to a foreign air carrier operating under 
Sec.  1546.101(a) or (b) of this chapter.
    (a) For cargo to be loaded on aircraft in the United States, each 
indirect air carrier must have and carry out a known shipper program in 
accordance with its security program. The program must--
    (1) Determine the shipper's validity and integrity as provided in 
its security program;
    (2) Provide that the indirect air carrier will separate known 
shipper cargo from unknown shipper cargo.
    (b) When required by TSA, each indirect air carrier must submit to 
TSA, in a form and manner acceptable to TSA--
    (1) Information identified in its security program regarding an 
applicant to be a known shipper or a known shipper; and
    (2) Corrections and updates of this information upon learning of a 
change to the information specified in paragraph (b)(1) of this section.

[71 FR 30516, May 26, 2006]



Sec.  1548.19  Security Directives and Information Circulars.

    (a) TSA may issue an Information Circular to notify indirect air 
carriers of security concerns.
    (b) When TSA determines that additional security measures are 
necessary to respond to a threat assessment, or to a specific threat 
against civil aviation, TSA issues a Security Directive setting forth 
mandatory measures.
    (1) Each indirect air carrier that is required to have an approved 
indirect air carrier security program must comply with each Security 
Directive that TSA issues to it, within the time prescribed in the 
Security Directive for compliance.
    (2) Each indirect air carrier that receives a Security Directive 
must comply with the following:
    (i) Within the time prescribed in the Security Directive, 
acknowledge in writing receipt of the Security Directive to TSA.
    (ii) Within the time prescribed in the Security Directive, specify 
the method by which the measures in the Security Directive have been 
implemented (or will be implemented, if the Security Directive is not 
yet effective).
    (3) In the event that the indirect air carrier is unable to 
implement the measures in the Security Directive, the indirect air 
carrier must submit proposed alternative measures and the basis for 
submitting the alternative measures to TSA for approval.
    (i) The indirect air carrier must submit the proposed alternative 
measures within the time prescribed in the Security Directive.
    (ii) The indirect air carrier must implement any alternative 
measures approved by TSA.
    (4) Each indirect air carrier that receives a Security Directive may 
comment on it by submitting data, views, or arguments in writing to TSA.

[[Page 387]]

    (i) TSA may amend the Security Directive based on comments received.
    (ii) Submission of a comment does not delay the effective date of 
the Security Directive.
    (5) Each indirect air carrier that receives a Security Directive or 
Information Circular, and each person who receives information from a 
Security Directive or Information Circular, must:
    (i) Restrict the availability of the Security Directive or 
Information Circular, and information contained in either document, to 
those persons with a need-to-know.
    (ii) Refuse to release the Security Directive or Information 
Circular, and information contained in either document, to persons other 
than those with a need-to-know without the prior written consent of TSA.

[71 FR 30516, May 26, 2006]



Sec.  1548.21  Screening of cargo.

    An IAC may only screen cargo for transport on a passenger aircraft 
under Sec. Sec.  1544.205 and 1546.205 if the IAC is a certified cargo 
screening facility as provided in part 1549.

[74 FR 47706, Sept. 16, 2009]



PART 1549_CERTIFIED CARGO SCREENING PROGRAM--Table of Contents



                            Subpart A_General

Sec.
1549.1 Applicability.
1549.3 TSA inspection authority.
1549.5 Adoption and implementation of the security program.
1549.7 Approval, amendment, renewal of the security program and 
          certification of acertified cargo screening facility.

                          Subpart B_Operations

1549.101 Acceptance, screening, and transfer of cargo.
1549.103 Qualifications and training of individuals with security-
          related duties.
1549.105 Recordkeeping.
1549.107 Security coordinators.
1549.109 Security Directives and Information Circulars.
1549.111 Security threat assessments for personnel of certified cargo 
          screening facilities.

    Authority: 49 U.S.C. 114, 5103, 40113, 44901-44905, 44913-44914, 
44916-44917, 44932, 44935-44936, 46105.

    Source: 74 FR 47706, Sept. 16, 2009, unless otherwise noted.



                            Subpart A_General



Sec.  1549.1  Applicability.

    This part applies to each facility applying for or certified by TSA 
as a certified cargo screening facility to screen cargo that will be 
transported on a passenger aircraft operated under a full program under 
49 CFR 1544.101(a), or a foreign air carrier operating under a program 
under 49 CFR 1546.101(a) or (b).



Sec.  1549.3  TSA inspection authority.

    (a) Each certified cargo screening facility must allow TSA, at any 
time or place, in a reasonable manner, without advance notice, to enter 
the facility and make any inspections or tests, including copying 
records, to--
    (1) Determine compliance of a certified cargo screening facility, 
airport operator, foreign air carrier, indirect air carrier, or airport 
tenant with this chapter and 49 U.S.C. 114 and Subtitle VII, as amended; 
or
    (2) Carry out TSA's statutory or regulatory authorities, including 
its authority to--
    (i) Assess threats to transportation;
    (ii) Enforce security-related regulations, directives, and 
requirements:
    (iii) Inspect, maintain, and test the security of facilities, 
equipment, and systems;
    (iv) Ensure the adequacy of security measures for the transportation 
of passengers and cargo;
    (v) Oversee the implementation, and ensure the adequacy, of security 
measures at airports and other transportation facilities;
    (vi) Review security plans; and
    (vii) Carry out such other duties, and exercise such other powers, 
relating to transportation security as the Assistant Secretary of 
Homeland Security for the TSA considers appropriate, to the extent 
authorized by law.
    (b) At the request of TSA, each certified cargo screening facility 
must provide evidence of compliance with this chapter, including copying 
records.
    (c) TSA and DHS officials working with TSA may conduct inspections 
under this section without access

[[Page 388]]

media or identification media issued or approved by a certified cargo 
screening facility or other person, except that the TSA and DHS 
officials will have identification media issued by TSA or DHS.



Sec.  1549.5  Adoption and implementation of the security program.

    (a) Security program required. No person may screen cargo to be 
tendered to an aircraft operator operating under a full program under 
part 1544, a foreign air carrier operating under Sec.  1546.101(a) or 
(b), or an indirect air carrier operating under Sec.  1548.5 for 
carriage on a passenger aircraft, unless that person holds and carries 
out an approved security program under this part.
    (b) Content. Each security program under this part must--
    (1) Provide for the security of the aircraft, as well as that of 
persons and property traveling in air transportation against acts of 
criminal violence and air piracy and against the introduction into the 
aircraft of any unauthorized explosive, incendiary, and other 
destructive substance or item as provided in the certified cargo 
screening facility's security program;
    (2) Be designed to prevent or deter the introduction of any 
unauthorized explosive, incendiary, and other destructive substance or 
item onto an aircraft; and
    (3) Include the procedures and description of the facilities and 
equipment used to comply with the requirements of this part.
    (c) Employees and agents. The certified cargo screening facility 
must ensure that its employees and agents carry out the requirements of 
this chapter and the certified cargo screening facility's security 
program.
    (d) Facility's security program. The certified cargo screening 
facility standard security program together with approved alternate 
procedures and amendments issued to a particular facility constitutes 
that facility's security program.
    (e) Availability. Each certified cargo screening facility must:
    (1) Maintain an original of the security program at its corporate 
office.
    (2) Have accessible a complete copy, or the pertinent portions of 
its security program, or appropriate implementing instructions, at its 
facility. An electronic version is adequate.
    (3) Make a copy of the security program available for inspection 
upon the request of TSA.
    (4) Restrict the distribution, disclosure, and availability of 
information contained in its security program to persons with a need to 
know, as described in part 1520 of this chapter.
    (5) Refer requests for such information by other persons to TSA.



Sec.  1549.7  Approval, amendment, renewal of the security program and certification of a certified cargo screening facility.

    (a) Initial application and approval.-- (1) Application. Unless 
otherwise authorized by TSA, each applicant must apply for a security 
program and for certification as a certified cargo screening facility at 
a particular location, in a form and a manner prescribed by TSA not less 
than 90 calendar days before the applicant intends to begin operations. 
TSA will only approve a facility to operate as a CCSF if it is located 
in the United States. The CCSF application must be in writing and 
include the following:
    (i) The business name; other names, including doing business as; 
state of incorporation, if applicable; and tax identification number.
    (ii) The name of the senior manager or representative of the 
applicant in control of the operations at the facility.
    (iii) A signed statement from each person listed in paragraph 
(a)(1)(ii) of this section stating whether he or she has been a senior 
manager or representative of a facility that had its security program 
withdrawn by TSA.
    (iv) Copies of government-issued identification of persons listed in 
paragraph (a)(1)(ii) of this section.
    (v) The street address of the facility where screening will be 
conducted.
    (vi) A statement acknowledging and ensuring that each individual and 
agent of the applicant, who is subject to training under Sec.  1549.11, 
will have successfully completed the training outlined in its security 
program before performing security-related duties.

[[Page 389]]

    (vii) Other information requested by TSA concerning Security Threat 
Assessments.
    (viii) A statement acknowledging and ensuring that each individual 
will successfully complete a Security Threat Assessment under Sec.  
1549.111 before the applicant authorizes the individual to have 
unescorted access to screened cargo or to screen or supervise the 
screening of cargo.
    (2) Standard security program and assessment. (i) After the Security 
Coordinator for an applicant successfully completes a security threat 
assessment, TSA will provide to the applicant the certified cargo 
screening standard security program, any security directives, and 
amendments to the security program and other alternative procedures that 
apply to the facility. The applicant may either accept the standard 
security program or submit a proposed modified security program to the 
designated official for approval. TSA will approve the security program 
under paragraphs (a)(3) and (a)(4) of the section or issue a written 
notice to modify under paragraph (a)(4) of this section.
    (ii) An applicant must successfully undergo an assessment by a TSA-
approved validation firm under 49 CFR part 1522 or by TSA.
    (3) Review. TSA will review a facility at a particular location to 
determine whether--
    (i) The applicant has met the requirements of this part, its 
security program, and any applicable Security Directive;
    (ii) The applicant has successfully undergone an assessment by a 
TSA-approved validation firm under 49 CFR part 1522 or by TSA;
    (iii) The applicant is able and willing to carry out the 
requirements of this part, its security program, and an applicable 
Security Directive;
    (iv) The approval of such applicant's security program is not 
contrary to the interests of security and the public interest;
    (v) The applicant has not held a security program that was withdrawn 
within the previous year, unless otherwise authorized by TSA; and
    (vi) TSA determines that the applicant is qualified to be a 
certified cargo screening facility.
    (4) Approval and certification. If TSA determines that the 
requirements of paragraph (a)(4) of this section are met and the 
application is approved, TSA will send the applicant a written notice of 
approval of its security program, and certification to operate as a 
certified cargo screening facility.
    (5) Commencement of operations. The certified cargo screening 
facility may operate under a security program when it meets all TSA 
requirements, including but not limited to a validation by TSA or a TSA-
approved validation firm, successful completion of training, and 
Security Threat Assessments by relevant personnel.
    (6) Duration of security program. The security program will remain 
effective until the end of the calendar month three years after the 
month it was approved or until the program has been surrendered or 
withdrawn, whichever is earlier.
    (7) Requirement to report changes in information. Each certified 
cargo screening facility under this part must notify TSA, in a form and 
manner approved by TSA, of any changes to the information submitted 
during its initial application.
    (i) The CCSF must submit this notification to TSA not later than 30 
days prior to the date the change is expected to occur.
    (ii) Changes included in the requirement of this paragraph include, 
but are not limited to, changes in the certified cargo screening 
facility's contact information, senior manager or representative, 
business addresses and locations, and form of business facility.
    (iii) If the certified cargo screening facility relocates, TSA will 
withdraw the existing certification and require the new facility to 
undergo a validation and certification process.
    (b) Renewal Application. Upon timely submittal of an application for 
renewal, and unless and until TSA denies the application, the certified 
cargo screening facility's approved security program remains in effect.
    (1) Unless otherwise authorized by TSA, each certified cargo 
screening facility must timely submit to TSA, at

[[Page 390]]

least 30 calendar days prior to the first day of the 36th anniversary 
month of initial approval of its security program, an application for 
renewal of its security program in a form and a manner approved by TSA.
    (2) The certified cargo screening facility must demonstrate that it 
has successfully undergone a revalidation of its operations by a TSA or 
a TSA-approved validation firm prior to the first day of the 36th 
anniversary month of initial approval of its security program.
    (3) The application for renewal must be in writing and include a 
signed statement that the certified cargo screening facility has 
reviewed and ensures the continuing accuracy of the contents of its 
initial application for a security program, subsequent renewal 
applications, or other submissions to TSA confirming a change of 
information and noting the date such applications and submissions were 
sent to TSA, including the following certification:

    [Name of certified cargo screening facility] (hereinafter ``the 
CCSF'') has adopted and is currently carrying out a security program in 
accordance with the Transportation Security Regulations as originally 
approved on [Insert date of TSA initial approval]. In accordance with 
TSA regulations, the CCSF has notified TSA of any new or changed 
information required for the CCSF's initial security program. If new or 
changed information is being submitted to TSA as part of this 
application for reapproval, that information is stated in this filing.
    The CCSF understands that intentional falsification of certification 
to an aircraft operator, foreign air carrier, indirect air carrier, or 
to TSA may be subject to both civil and criminal penalties under 49 CFR 
part 1540 and 18 U.S.C. 1001. Failure to notify TSA of any new or 
changed information required for initial approval of the CCSF's security 
program in a timely fashion and in a form acceptable to TSA may result 
in withdrawal by TSA of approval of the CCSF's security program.

    (4) TSA will renew approval of the security program if TSA 
determines that--
    (i) The CCSF has met the requirements of this chapter, its security 
program, and any Security Directive; and
    (ii) The renewal of its security program is not contrary to the 
interests of security and the public interest.
    (5) If TSA determines that the certified cargo screening facility 
meets the requirements of paragraph (b)(3) of this section, it will 
renew the certified cargo screening facility's security program and 
certification. The security program and certification will remain 
effective until the end of the calendar month three years after the 
month it was renewed.
    (c) Amendment requested by a certified cargo screening entity or 
applicant. A certified cargo screening facility or applicant may file a 
request for an amendment to its security program with the TSA designated 
official at least 45 calendar days before the date it proposes for the 
amendment to become effective, unless the designated official allows a 
shorter period. Any certified cargo screening facility may submit to TSA 
a group proposal for an amendment that is on behalf of it and other 
certified cargo screening facilities that co-sign the proposal.
    (1) Within 30 calendar days after receiving a proposed amendment, 
the designated official, in writing, either approves or denies the 
request to amend.
    (2) TSA may approve an amendment to a certified cargo screening 
facility's security program, if the TSA designated official determines 
that safety and the public interest will allow it, and if the proposed 
amendment provides the level of security required under this part.
    (3) Within 30 calendar days after receiving a denial of the proposed 
amendment, the certified cargo screening facility may petition TSA to 
reconsider the denial. The CCSF must file the Petition for 
Reconsideration with the designated official.
    (4) Upon receipt of a Petition for Reconsideration, the designated 
official either approves the request to amend or transmits the petition, 
together with any pertinent information, to TSA for reconsideration. TSA 
will dispose of the petition within 30 calendar days of receipt by 
either directing the designated official to approve the amendment or by 
affirming the denial.
    (d) Amendment by TSA. TSA may amend a security program in the 
interest of safety and the public interest, as follows:

[[Page 391]]

    (1) TSA notifies the certified cargo screening facility, in writing, 
of the proposed amendment, fixing a period of not less than 30 calendar 
days within which the certified cargo screening facility may submit 
written information, views, and arguments on the amendment.
    (2) After considering all relevant material, the designated official 
notifies the certified cargo screening facility of any amendment adopted 
or rescinds the notice of amendment. If the amendment is adopted, it 
becomes effective not less than 30 calendar days after the certified 
cargo screening facility receives the notice of amendment, unless the 
certified cargo screening facility disagrees with the proposed amendment 
and petitions the TSA to reconsider, no later than 15 calendar days 
before the effective date of the amendment. The certified cargo 
screening facility must send the petition for reconsideration to the 
designated official. A timely Petition for Reconsideration stays the 
effective date of the amendment.
    (3) Upon receipt of a Petition for Reconsideration, the designated 
official either amends or withdraws the notice of amendment, or 
transmits the Petition, together with any pertinent information, to TSA 
for reconsideration. TSA disposes of the Petition within 30 calendar 
days of receipt, either by directing the designated official to withdraw 
or amend the notice of amendment, or by affirming the notice of 
amendment.
    (e) Emergency amendments. (1) If TSA finds that there is an 
emergency requiring immediate action, with respect to aviation security 
that makes procedures in this section contrary to the public interest, 
the designated official may issue an emergency amendment, without the 
prior notice and comment procedures described in paragraph (d) of this 
section.
    (2) The emergency amendment is effective without stay on the date 
the certified cargo screening facility receives notification. TSA will 
incorporate in the notification a brief statement of the reasons and 
findings for the emergency amendment to be adopted.
    (3) The certified cargo screening facility may file a Petition for 
Reconsideration with the TSA no later than 15 calendar days after TSA 
issued the emergency amendment. The certified cargo screening facility 
must send the Petition for Reconsideration to the designated official; 
however, the filing does not stay the effective date of the emergency 
amendment.



                          Subpart B_Operations



Sec.  1549.101  Acceptance, screening, and transfer of cargo.

    (a) Preventing or deterring the carriage of any explosive or 
incendiary. Each certified cargo screening facility must use the 
facilities, equipment, and procedures described in its security program 
to prevent or deter the carriage onboard an aircraft of any unauthorized 
explosives, incendiaries, and other destructive substances or items in 
cargo onboard an aircraft, as provided in the facility's security 
program.
    (b) Screening and inspection of cargo. Each certified cargo 
screening facility must ensure that cargo is screened and inspected for 
any unauthorized explosive, incendiary, and other destructive substance 
or item as provided in the facility's security program before it is 
tendered to another certified cargo screening facility, an aircraft 
operator with a full program under part 1544, a foreign air carrier 
operating under Sec. Sec.  1546.101(a) or (b), or an indirect air 
carrier operating under Sec.  1548.5 for transport on a passenger 
aircraft. Cargo that the facility represents as screened, must be 
screened in accordance with this part.
    (c) Refusal to transport. Each certified cargo screening facility 
must refuse to offer to another certified cargo screening facility, an 
aircraft operator with a full program under part 1544, a foreign air 
carrier operating under Sec. Sec.  1546.101(a) or (b), or an indirect 
air carrier operating under Sec.  1548.5 for transport on a passenger 
aircraft any cargo, if the shipper does not consent to a search or 
inspection of that cargo in accordance with this part, or parts 1544, 
1546, or 1548 of this chapter.
    (d) Chain of custody. Each certified cargo screening facility must 
protect the cargo from unauthorized access

[[Page 392]]

from the time it is screened until the time it is tendered to another 
certified cargo screening facility as approved by TSA, an indirect air 
carrier under 49 CFR part 1548, an aircraft operator under part 1544, or 
a foreign air carrier under part 1546.



Sec.  1549.103  Qualifications and training of individuals with security-related duties.

    (a) Security threat assessments. Each certified cargo screening 
facility must ensure that individuals listed in 49 CFR 1540.201(a)(6), 
(7), (8), (9), and (12) relating to a certified cargo screening facility 
complete a security threat assessment or comparable security threat 
assessment described in part 1540, subpart C of this chapter, before 
conducting screening or supervising screening or before having 
unescorted access to screened cargo, unless the individual is authorized 
to serve as law enforcement personnel at that location.
    (b) Training required. Each certified cargo screening facility must 
ensure that individuals have received training, as specified in this 
section and its security program, before such individual perform any 
duties to meet the requirements of its security program.
    (c) Knowledge and training requirements. Each certified cargo 
screening facility must ensure that each individual who performs duties 
to meet the requirements of its security program have knowledge of, and 
annual training in, the--
    (1) Applicable provisions of this chapter, including this part, part 
1520, and Sec.  1540.105;
    (2) The certified cargo screening facility's security program, to 
the extent that such individuals need to know in order to perform their 
duties;
    (3) Applicable Security Directives and Information Circulars; and
    (4) The applicable portions of approved airport security program(s) 
and aircraft operator security program(s).
    (d) Screener qualifications. Each certified cargo screening facility 
must ensure that each individual who screens cargo or who supervises 
cargo screening--
    (1) Is a citizen or national of the United States, or an alien 
lawfully admitted for permanent residence;
    (2) Has a high school diploma, a General Equivalency Diploma, or a 
combination of education and experience that the certified cargo 
screening facility has determined to have equipped the person to perform 
the duties of the position;
    (3) Has basic aptitudes and physical abilities including color 
perception, visual and aural acuity, physical coordination, and motor 
skills to the extent required to effectively operate cargo screening 
technologies that the facility is authorized to use. These include:
    (i) The ability to operate x-ray equipment and to distinguish on the 
x-ray monitor the appropriate imaging standard specified in the 
certified cargo screening facility security program. Wherever the x-ray 
system displays colors, the operator must be able to perceive each 
color.
    (ii) The ability to distinguish each color displayed on every type 
of screening equipment and explain what each color signifies.
    (iii) The ability to hear and respond to the spoken voice and to 
audible alarms generated by screening equipment.
    (4) Has the ability to read, write and understand English well 
enough to carry out written and oral instructions regarding the proper 
performance of screening duties or be under the direct supervision of 
someone who has this ability, including reading labels and shipping 
papers, and writing log entries into security records in English.



Sec.  1549.105  Recordkeeping.

    (a) Each certified cargo screening facility must maintain records 
demonstrating compliance with all statutes, regulations, directives, 
orders, and security programs that apply to operation as a certified 
cargo screening facility, including the records listed below, at the 
facility location or other location as approved by TSA:
    (1) Records of all training and instructions given to each 
individual under Sec.  1549.103. The CCSF must retain these records for 
180 days after the individual is no longer employed by the

[[Page 393]]

certified cargo screening facility or is no longer acting as the 
facility's agent.
    (2) Copies of all applications for, or renewals of, TSA 
certification to operate under part 1549. Copies of reports by TSA-
certified validators must be included in these records.
    (3) Documents establishing TSA's certification and renewal of 
certification as required by part 1549.
    (4) Records demonstrating that each individual has complied with the 
security threat assessment provisions of Sec.  1549.111.
    (b) Unless otherwise stated, records must be retained until the next 
re-certification.



Sec.  1549.107  Security coordinators.

    Each certified cargo screening facility must have a Security 
Coordinator and designated alternate Security Coordinator appointed at 
the corporate level. In addition, each certified cargo screening 
facility must have a facility Security Coordinator and alternate 
facility Security Coordinator appointed at the facility level. The 
facility Security Coordinator must serve as the certified cargo 
screening facility's primary contact for security-related activities and 
communications with TSA, as set forth in the security program. The 
Security Coordinator and alternate appointed at the corporate level, as 
well as the facility Security Coordinator and alternate, must be 
available on a 24-hour, 7-days a week basis.



Sec.  1549.109  Security Directives and Information Circulars.

    (a) TSA may issue an Information Circular to notify certified cargo 
screening facilities of security concerns.
    (b) When TSA determines that additional security measures are 
necessary to respond to a threat assessment, or to a specific threat 
against civil aviation, TSA issues a Security Directive setting forth 
mandatory measures.
    (1) Each certified cargo screening facility must comply with each 
Security Directive that TSA issues to it, within the time prescribed in 
the Security Directive for compliance.
    (2) Each certified cargo screening facility that receives a Security 
Directive must comply with the following:
    (i) Within the time prescribed in the Security Directive, 
acknowledge in writing receipt of the Security Directive to TSA.
    (ii) Within the time prescribed in the Security Directive, specify 
the method by which the measures in the Security Directive have been 
implemented (or will be implemented, if the Security Directive is not 
yet effective).
    (3) In the event that the certified cargo screening facility is 
unable to implement the measures in the Security Directive, the 
certified cargo screening facility must submit proposed alternative 
measures and the basis for submitting the alternative measures to TSA 
for approval.
    (i) The certified cargo screening facility must submit the proposed 
alternative measures within the time prescribed in the Security 
Directive.
    (ii) The certified cargo screening facility must implement any 
alternative measures approved by TSA.
    (4) Each certified cargo screening facility that receives a Security 
Directive may comment on it by submitting data, views, or arguments in 
writing to TSA.
    (i) TSA may amend the Security Directive based on comments received.
    (ii) Submission of a comment does not delay the effective date of 
the Security Directive.
    (5) Each certified cargo screening facility that receives a Security 
Directive or Information Circular, and each person who receives 
information from a Security Directive or Information Circular, must--
    (i) Restrict the availability of the Security Directive or 
Information Circular, and information contained in either document, to 
those persons with a need-to-know; and
    (ii) Refuse to release the Security Directive or Information 
Circular, and information contained in either document, to persons other 
than those with a need-to-know without the prior written consent of TSA.



Sec.  1549.111  Security threat assessments for personnel of certified cargo screening facilities.

    (a) Scope. This section applies to the following:

[[Page 394]]

    (1) Each individual the certified cargo screening facility 
authorizes to perform cargo screening or supervise cargo screening.
    (2) Each individual the certified cargo screening facility 
authorizes to have unescorted access to cargo at any time from the time 
it is screened until the time it is tendered to another certified cargo 
screening facility, an indirect air carrier under 49 CFR part 1548 for 
transport on a passenger aircraft, an aircraft operator under part 1544, 
or a foreign air carrier under part 1546.
    (3) The senior manager or representative of its facility in control 
of the operations.
    (4) The security coordinators and their alternates.
    (b) Security threat assessment. Before a certified cargo screening 
facility authorizes an individual to perform the functions described in 
paragraph (a) of this section, and before the individual performs those 
functions--
    (1) Each individual must successfully complete a security threat 
assessment or comparable security threat assessment described in part 
1540, subpart C of this chapter; and
    (2) Each certified screening facility must complete the requirements 
in 49 CFR part 1540, subpart C.



PART 1550_AIRCRAFT SECURITY UNDER GENERAL OPERATING AND FLIGHT RULES--Table of Contents



Sec.
1550.1 Applicability of this part.
1550.3 TSA inspection authority.
1550.5 Operations using a sterile area.
1550.7 Operations in aircraft of 12,500 pounds or more.

    Authority: 49 U.S.C. 114, 5103, 40113, 44901-44907, 44913-44914, 
44916-44918, 44935-44936, 44942, 46105.

    Source: 67 FR 8383, Feb. 22, 2002, unless otherwise noted.



Sec.  1550.1  Applicability of this part.

    This part applies to the operation of aircraft for which there are 
no security requirements in other parts of this subchapter.



Sec.  1550.3  TSA inspection authority.

    (a) Each aircraft operator subject to this part must allow TSA, at 
any time or place, to make any inspections or tests, including copying 
records, to determine compliance with--
    (1) This subchapter and any security program or security procedures 
under this subchapter, and part 1520 of this chapter; and
    (2) 49 U.S.C. Subtitle VII, as amended.
    (b) At the request of TSA, each aircraft operator must provide 
evidence of compliance with this part and its security program or 
security procedures, including copies of records.



Sec.  1550.5  Operations using a sterile area.

    (a) Applicability of this section. This section applies to all 
aircraft operations in which passengers, crewmembers, or other 
individuals are enplaned from or deplaned into a sterile area, except 
for scheduled passenger operations, public charter passenger operations, 
and private charter passenger operations, that are in accordance with a 
security program issued under part 1544 or 1546 of this chapter.
    (b) Procedures. Any person conducting an operation identified in 
paragraph (a) of this section must conduct a search of the aircraft 
before departure and must screen passengers, crewmembers, and other 
individuals and their accessible property (carry-on items) before 
boarding in accordance with security procedures approved by TSA.
    (c) Sensitive security information. The security program procedures 
approved by TSA for operations specified in paragraph (a) of this 
section are sensitive security information. The operator must restrict 
the distribution, disclosure, and availability of information contained 
in the security procedures to persons with a need to know as described 
in part 1520 of this chapter.
    (d) Compliance date. Persons conducting operations identified in 
paragraph (a) of this section must implement security procedures on 
October 6, 2001.
    (e) Waivers. TSA may permit a person conducting an operation under 
this section to deviate from the provisions of this section if TSA finds 
that the operation can be conducted safely under the terms of the 
waiver.

[[Page 395]]



Sec.  1550.7  Operations in aircraft of 12,500 pounds or more.

    (a) Applicability of this section. This section applies to each 
aircraft operation conducted in an aircraft with a maximum certificated 
takeoff weight of 12,500 pounds or more except for those operations 
specified in Sec.  1550.5 and those operations conducted under a 
security program under part 1544 or 1546 of this chapter.
    (b) Procedures. Any person conducting an operation identified in 
paragraph (a) of this section must conduct a search of the aircraft 
before departure and screen passengers, crewmembers, and other persons 
and their accessible property (carry-on items) before boarding in 
accordance with security procedures approved by TSA.
    (c) Compliance date. Persons identified in paragraph (a) of this 
section must implement security procedures when notified by TSA. TSA 
will notify operators by NOTAM, letter, or other communication when they 
must implement security procedures.
    (d) Waivers. TSA may permit a person conducting an operation 
identified in this section to deviate from the provisions of this 
section if TSA finds that the operation can be conducted safely under 
the terms of the waiver.



PART 1552_FLIGHT SCHOOLS--Table of Contents



  Subpart A_Flight Training for Aliens and Other Designated Individuals

Sec.
1552.1 Scope and definitions.
1552.3 Flight training.
1552.5 Fees.

           Subpart B_Flight School Security Awareness Training

1552.21 Scope and definitions.
1552.23 Security awareness training programs.
1552.25 Documentation, recordkeeping, and inspection.

    Authority: 49 U.S.C. 114, 44939.

    Source: 69 FR 56340, Sept. 20, 2004, unless otherwise noted.



  Subpart A_Flight Training for Aliens and Other Designated Individuals



Sec.  1552.1  Scope and definitions.

    (a) Scope. This subpart applies to flight schools that provide 
instruction under 49 U.S.C. Subtitle VII, Part A, in the operation of 
aircraft or aircraft simulators, and individuals who apply to obtain 
such instruction or who receive such instruction.
    (b) Definitions. As used in this part:
    Aircraft simulator means a flight simulator or flight training 
device, as those terms are defined at 14 CFR 61.1.
    Alien means any person not a citizen or national of the United 
States.
    Candidate means an alien or other individual designated by TSA who 
applies for flight training or recurrent training. It does not include 
an individual endorsed by the Department of Defense for flight training.
    Day means a day from Monday through Friday, including State and 
local holidays but not Federal holidays, for any time period less than 
11 days specified in this part. For any time period greater than 11 
days, day means calendar day.
    Demonstration flight for marketing purposes means a flight for the 
purpose of demonstrating an aircraft's or aircraft simulator's 
capabilities or characteristics to a potential purchaser, or to an agent 
of a potential purchaser, of the aircraft or simulator, including an 
acceptance flight after an aircraft manufacturer delivers an aircraft to 
a purchaser.
    Flight school means any pilot school, flight training center, air 
carrier flight training facility, or flight instructor certificated 
under 14 CFR part 61, 121, 135, 141, or 142; or any other person or 
entity that provides instruction under 49 U.S.C. Subtitle VII, Part A, 
in the operation of any aircraft or aircraft simulator.
    Flight training means instruction received from a flight school in 
an aircraft or aircraft simulator. Flight training does not include 
recurrent training, ground training, a demonstration flight for 
marketing purposes, or any military training provided by the Department 
of Defense, the U.S. Coast Guard, or an entity under contract

[[Page 396]]

with the Department of Defense or U.S. Coast Guard.
    Ground training means classroom or computer-based instruction in the 
operation of aircraft, aircraft systems, or cockpit procedures. Ground 
training does not include instruction in an aircraft simulator.
    National of the United States means a person who, though not a 
citizen of the United States, owes permanent allegiance to the United 
States, and includes a citizen of American Samoa or Swains Island.
    Recurrent training means periodic training required under 14 CFR 
part 61, 121,125, 135, or Subpart K of part 91. Recurrent training does 
not include training that would enable a candidate who has a certificate 
or type rating for a particular aircraft to receive a certificate or 
type rating for another aircraft.



Sec.  1552.3  Flight training.

    This section describes the procedures a flight school must follow 
before providing flight training.
    (a) Category 1--Regular processing for flight training on aircraft 
more than 12,500 pounds. A flight school may not provide flight training 
in the operation of any aircraft having a maximum certificated takeoff 
weight of more than 12,500 pounds to a candidate, except for a candidate 
who receives expedited processing under paragraph (b) of this section, 
unless--
    (1) The flight school has first notified TSA that the candidate has 
requested such flight training.
    (2) The candidate has submitted to TSA, in a form and manner 
acceptable to TSA, the following:
    (i) The candidate's full name, including any aliases used by the 
candidate or variations in the spelling of the candidate's name;
    (ii) A unique candidate identification number created by TSA;
    (iii) A copy of the candidate's current, unexpired passport and 
visa;
    (iv) The candidate's passport and visa information, including all 
current and previous passports and visas held by the candidate and all 
the information necessary to obtain a passport and visa;
    (v) The candidate's country of birth, current country or countries 
of citizenship, and each previous country of citizenship, if any;
    (vi) The candidate's actual date of birth or, if the candidate does 
not know his or her date of birth, the approximate date of birth used 
consistently by the candidate for his or her passport or visa;
    (vii) The candidate's requested dates of training and the location 
of the training;
    (viii) The type of training for which the candidate is applying, 
including the aircraft type rating the candidate would be eligible to 
obtain upon completion of the training;
    (ix) The candidate's current U.S. pilot certificate, certificate 
number, and type rating, if any;
    (x) Except as provided in paragraph (k) of this section, the 
candidate's fingerprints, in accordance with paragraph (f) of this 
section;
    (xi) The candidate's current address and phone number and each 
address for the 5 years prior to the date of the candidate's 
application;
    (xii) The candidate's gender; and
    (xiii) Any fee required under this part.
    (3) The flight school has submitted to TSA, in a form and manner 
acceptable to TSA, a photograph of the candidate taken when the 
candidate arrives at the flight school for flight training.
    (4) TSA has informed the flight school that the candidate does not 
pose a threat to aviation or national security, or more than 30 days 
have elapsed since TSA received all of the information specified in 
paragraph (a)(2) of this section.
    (5) The flight school begins the candidate's flight training within 
180 days of either event specified in paragraph (a)(4) of this section.
    (b) Category 2--Expedited processing for flight training on aircraft 
more than 12,500 pounds. (1) A flight school may not provide flight 
training in the operation of any aircraft having a maximum certificated 
takeoff weight of more than 12,500 pounds to a candidate who meets any 
of the criteria of paragraph (b)(2) of this section unless--

[[Page 397]]

    (i) The flight school has first notified TSA that the candidate has 
requested such flight training.
    (ii) The candidate has submitted to TSA, in a form and manner 
acceptable to TSA:
    (A) The information and fee required under paragraph (a)(2) of this 
section; and
    (B) The reason the candidate is eligible for expedited processing 
under paragraph (b)(2) of this section and information that establishes 
that the candidate is eligible for expedited processing.
    (iii) The flight school has submitted to TSA, in a form and manner 
acceptable to TSA, a photograph of the candidate taken when the 
candidate arrives at the flight school for flight training.
    (iv) TSA has informed the flight school that the candidate does not 
pose a threat to aviation or national security or more than 5 days have 
elapsed since TSA received all of the information specified in paragraph 
(a)(2) of this section.
    (v) The flight school begins the candidate's flight training within 
180 days of either event specified in paragraph (b)(1)(iv) of this 
section.
    (2) A candidate is eligible for expedited processing if he or she--
    (i) Holds an airman's certificate from a foreign country that is 
recognized by the Federal Aviation Administration or a military agency 
of the United States, and that permits the candidate to operate a multi-
engine aircraft that has a certificated takeoff weight of more than 
12,500 pounds;
    (ii) Is employed by a foreign air carrier that operates under 14 CFR 
part 129 and has a security program approved under 49 CFR part 1546;
    (iii) Has unescorted access authority to a secured area of an 
airport under 49 U.S.C. 44936(a)(1)(A)(ii), 49 CFR 1542.209, or 49 CFR 
1544.229;
    (iv) Is a flightcrew member who has successfully completed a 
criminal history records check in accordance with 49 CFR 1544.230; or
    (v) Is part of a class of individuals that TSA has determined poses 
a minimal threat to aviation or national security because of the flight 
training already possessed by that class of individuals.
    (c) Category 3--Flight training on aircraft 12,500 pounds or less. A 
flight school may not provide flight training in the operation of any 
aircraft having a maximum certificated takeoff weight of 12,500 pounds 
or less to a candidate unless--
    (1) The flight school has first notified TSA that the candidate has 
requested such flight training.
    (2) The candidate has submitted to TSA, in a form and manner 
acceptable to TSA:
    (i) The information required under paragraph (a)(2) of this section; 
and
    (ii) Any other information required by TSA.
    (3) The flight school has submitted to TSA, in a form and manner 
acceptable to TSA, a photograph of the candidate taken when the 
candidate arrives at the flight school for flight training.
    (4) The flight school begins the candidate's flight training within 
180 days of the date the candidate submitted the information required 
under paragraph (a)(2) of this section to TSA.
    (d) Category 4--Recurrent training for all aircraft. Prior to 
beginning recurrent training for a candidate, a flight school must--
    (1) Notify TSA that the candidate has requested such recurrent 
training; and
    (2) Submit to TSA, in a form and manner acceptable to TSA:
    (i) The candidate's full name, including any aliases used by the 
candidate or variations in the spelling of the candidate's name;
    (ii) Any unique student identification number issued to the 
candidate by the Department of Justice or TSA;
    (iii) A copy of the candidate's current, unexpired passport and 
visa;
    (iv) The candidate's current U.S. pilot certificate, certificate 
number, and type rating(s);
    (v) The type of training for which the candidate is applying;
    (vi) The date of the candidate's prior recurrent training, if any, 
and a copy of the training form documenting that recurrent training;
    (vii) The candidate's requested dates of training; and

[[Page 398]]

    (viii) A photograph of the candidate taken when the candidate 
arrives at the flight school for flight training.
    (e) Interruption of flight training. A flight school must 
immediately terminate or cancel a candidate's flight training if TSA 
notifies the flight school at any time that the candidate poses a threat 
to aviation or national security.
    (f) Fingerprints. (1) Fingerprints submitted in accordance with this 
subpart must be collected--
    (i) By United States Government personnel at a United States embassy 
or consulate; or
    (ii) By another entity approved by TSA.
    (2) A candidate must confirm his or her identity to the individual 
or agency collecting his or her fingerprints under paragraph (f)(1) of 
this section by providing the individual or agency his or her:
    (i) Passport;
    (ii) Resident alien card; or
    (iii) U.S. driver's license.
    (3) A candidate must pay any fee imposed by the agency taking his or 
her fingerprints.
    (g) General requirements--(1) False statements. If a candidate makes 
a knowing and willful false statement, or omits a material fact, when 
submitting the information required under this part, the candidate may 
be--
    (i) Subject to fine or imprisonment or both under 18 U.S.C. 1001;
    (ii) Denied approval for flight training under this section; and
    (iii) Subject to other enforcement action, as appropriate.
    (2) Preliminary approval. For purposes of facilitating a candidate's 
visa process with the U.S. Department of State, TSA may inform a flight 
school and a candidate that the candidate has received preliminary 
approval for flight training based on information submitted by the 
flight school or the candidate under this section. A flight school may 
then issue an I-20 form to the candidate to present with the candidate's 
visa application. Preliminary approval does not initiate the waiting 
period under paragraph (a)(3) or (b)(1)(iii) of this section or the 
period in which a flight school must initiate a candidate's training 
after receiving TSA approval under paragraph (a)(4) or (b)(1)(iv) of 
this section.
    (h) U.S. citizens and nationals and Department of Defense endorsees. 
A flight school must determine whether an individual is a citizen or 
national of the United States, or a Department of Defense endorsee, 
prior to providing flight training to the individual.
    (1) U.S. citizens and nationals. To establish U.S. citizenship or 
nationality an individual must present to the flight school his or her:
    (i) Valid, unexpired United States passport;
    (ii) Original or government-issued certified birth certificate of 
the United States, American Samoa, or Swains Island, together with a 
government-issued picture identification of the individual;
    (iii) Original United States naturalization certificate with raised 
seal, or a Certificate of Naturalization issued by the U.S. Citizenship 
and Immigration Services (USCIS) or the U.S. Immigration and 
Naturalization Service (INS) (Form N-550 or Form N-570), together with a 
government-issued picture identification of the individual;
    (iv) Original certification of birth abroad with raised seal, U.S. 
Department of State Form FS-545, or U.S. Department of State Form DS-
1350, together with a government-issued picture identification of the 
individual;
    (v) Original certificate of United States citizenship with raised 
seal, a Certificate of United States Citizenship issued by the USCIS or 
INS (Form N-560 or Form N-561), or a Certificate of Repatriation issued 
by the USCIS or INS (Form N-581), together with a government-issued 
picture identification of the individual; or
    (vi) In the case of flight training provided to a Federal employee 
(including military personnel) pursuant to a contract between a Federal 
agency and a flight school, the agency's written certification as to its 
employee's United States citizenship or nationality, together with the 
employee's government-issued credentials or other Federally-issued 
picture identification.
    (2) Department of Defense endorsees. To establish that an individual 
has been endorsed by the U.S. Department of

[[Page 399]]

Defense for flight training, the individual must present to the flight 
school a written statement acceptable to TSA from the U.S. Department of 
Defense attach[eacute] in the individual's country of residence together 
with a government-issued picture identification of the individual.
    (i) Recordkeeping requirements. A flight school must--
    (1) Maintain the following information for a minimum of 5 years:
    (i) For each candidate:
    (A) A copy of the photograph required under paragraph (a)(3), 
(b)(1)(iii), (c)(3), or (d)(2)(viii) of this section; and
    (B) A copy of the approval sent by TSA confirming the candidate's 
eligibility for flight training.
    (ii) For a Category 1, Category 2, or Category 3 candidate, a copy 
of the information required under paragraph (a)(2) of this section, 
except the information in paragraph (a)(2)(x).
    (iii) For a Category 4 candidate, a copy of the information required 
under paragraph (d)(2) of this section.
    (iv) For an individual who is a United States citizen or national, a 
copy of the information required under paragraph (h)(1) of this section.
    (v) For an individual who has been endorsed by the U.S. Department 
of Defense for flight training, a copy of the information required under 
paragraph (h)(2) of this section.
    (vi) A record of all fees paid to TSA in accordance with this part.
    (2) Permit TSA and the Federal Aviation Administration to inspect 
the records required by paragraph (i)(1) of this section during 
reasonable business hours.
    (j) Candidates subject to the Department of Justice rule. A 
candidate who submits a completed Flight Training Candidate Checks 
Program form and fingerprints to the Department of Justice in accordance 
with 28 CFR part 105 before September 28, 2004, or a later date 
specified by TSA, is processed in accordance with the requirements of 
that part. If TSA specifies a date later than the compliance dates 
identified in this part, individuals and flight schools who comply with 
28 CFR part 105 up to that date will be considered to be in compliance 
with the requirements of this part.
    (k) Additional or missed flight training. (1) A Category 1, 2, or 3 
candidate who has been approved for flight training by TSA may take 
additional flight training without submitting fingerprints as specified 
in paragraph (a)(2)(x) of this section if the candidate:
    (i) Submits all other information required in paragraph (a)(2) of 
this section, including the fee; and
    (ii) Waits for TSA approval or until the applicable waiting period 
expires before initiating the additional flight training.
    (2) A Category 1, 2, or 3 candidate who is approved for flight 
training by TSA, but does not initiate that flight training within 180 
days, may reapply for flight training without submitting fingerprints as 
specified in paragraph (a)(2)(x) of this section if the candidate 
submits all other information required in paragraph (a)(2) of this 
section, including the fee.



Sec.  1552.5  Fees.

    (a) Imposition of fees. The following fee is required for TSA to 
conduct a security threat assessment for a candidate for flight training 
subject to the requirements of Sec.  1552.3: $130.
    (b) Remittance of fees. (1) A candidate must remit the fee required 
under this subpart to TSA, in a form and manner acceptable to TSA, each 
time the candidate or the flight school is required to submit the 
information required under Sec.  1552.3 to TSA.
    (2) TSA will not issue any fee refunds, unless a fee was paid in 
error.



           Subpart B_Flight School Security Awareness Training



Sec.  1552.21  Scope and definitions.

    (a) Scope. This subpart applies to flight schools that provide 
instruction under 49 U.S.C. Subtitle VII, Part A, in the operation of 
aircraft or aircraft simulators, and to employees of such flight 
schools.
    (b) Definitions: As used in this subpart:
    Flight school employee means a flight instructor or ground 
instructor certificated under 14 CFR part 61, 141, or 142; a chief 
instructor certificated under 14

[[Page 400]]

CFR part 141; a director of training certificated under 14 CFR part 142; 
or any other person employed by a flight school, including an 
independent contractor, who has direct contact with a flight school 
student. This includes an independent or solo flight instructor 
certificated under 14 CFR part 61.



Sec.  1552.23  Security awareness training programs.

    (a) General. A flight school must ensure that--
    (1) Each of its flight school employees receives initial and 
recurrent security awareness training in accordance with this subpart; 
and
    (2) If an instructor is conducting the initial security awareness 
training program, the instructor has first successfully completed the 
initial flight school security awareness training program offered by TSA 
or an alternative initial flight school security awareness training 
program that meets the criteria of paragraph (c) of this section.
    (b) Initial security awareness training program. (1) A flight school 
must ensure that--
    (i) Each flight school employee employed on January 18, 2005 
receives initial security awareness training in accordance with this 
subpart by January 18, 2005; and
    (ii) Each flight school employee hired after January 18, 2005 
receives initial security awareness training within 60 days of being 
hired.
    (2) In complying with paragraph (b)(2) of this section, a flight 
school may use either:
    (i) The initial flight school security awareness training program 
offered by TSA; or
    (ii) An alternative initial flight school security awareness 
training program that meets the criteria of paragraph (c) of this 
section.
    (c) Alternative initial security awareness training program. At a 
minimum, an alternative initial security awareness training program 
must--
    (1) Require active participation by the flight school employee 
receiving the training.
    (2) Provide situational scenarios requiring the flight school 
employee receiving the training to assess specific situations and 
determine appropriate courses of action.
    (3) Contain information that enables a flight school employee to 
identify--
    (i) Uniforms and other identification, if any are required at the 
flight school, for flight school employees or other persons authorized 
to be on the flight school grounds.
    (ii) Behavior by clients and customers that may be considered 
suspicious, including, but not limited to:
    (A) Excessive or unusual interest in restricted airspace or 
restricted ground structures;
    (B) Unusual questions or interest regarding aircraft capabilities;
    (C) Aeronautical knowledge inconsistent with the client or 
customer's existing airman credentialing; and
    (D) Sudden termination of the client or customer's instruction.
    (iii) Behavior by other on-site persons that may be considered 
suspicious, including, but not limited to:
    (A) Loitering on the flight school grounds for extended periods of 
time; and
    (B) Entering ``authorized access only'' areas without permission.
    (iv) Circumstances regarding aircraft that may be considered 
suspicious, including, but not limited to:
    (A) Unusual modifications to aircraft, such as the strengthening of 
landing gear, changes to the tail number, or stripping of the aircraft 
of seating or equipment;
    (B) Damage to propeller locks or other parts of an aircraft that is 
inconsistent with the pilot training or aircraft flight log; and
    (C) Dangerous or hazardous cargo loaded into an aircraft.
    (v) Appropriate responses for the employee to specific situations, 
including:
    (A) Taking no action, if a situation does not warrant action;
    (B) Questioning an individual, if his or her behavior may be 
considered suspicious;
    (C) Informing a supervisor, if a situation or an individual's 
behavior warrants further investigation;
    (D) Calling the TSA General Aviation Hotline; or
    (E) Calling local law enforcement, if a situation or an individual's 
behavior could pose an immediate threat.

[[Page 401]]

    (vi) Any other information relevant to security measures or 
procedures at the flight school, including applicable information in the 
TSA Information Publication ``Security Guidelines for General Aviation 
Airports''.
    (d) Recurrent security awareness training program. (1) A flight 
school must ensure that each flight school employee receives recurrent 
security awareness training each year in the same month as the month the 
flight school employee received initial security awareness training in 
accordance with this subpart.
    (2) At a minimum, a recurrent security awareness training program 
must contain information regarding--
    (i) Any new security measures or procedures implemented by the 
flight school;
    (ii) Any security incidents at the flight school, and any lessons 
learned as a result of such incidents;
    (iii) Any new threats posed by or incidents involving general 
aviation aircraft contained on the TSA Web site; and
    (iv) Any new TSA guidelines or recommendations concerning the 
security of general aviation aircraft, airports, or flight schools.



Sec.  1552.25  Documentation, recordkeeping, and inspection.

    (a) Documentation. A flight school must issue a document to each 
flight school employee each time the flight school employee receives 
initial or recurrent security awareness training in accordance with this 
subpart. The document must--
    (1) Contain the flight school employee's name and a distinct 
identification number.
    (2) Indicate the date on which the flight school employee received 
the security awareness training.
    (3) Contain the name of the instructor who conducted the training, 
if any.
    (4) Contain a statement certifying that the flight school employee 
received the security awareness training.
    (5) Indicate the type of training received, initial or recurrent.
    (6) Contain a statement certifying that the alternative training 
program used by the flight school meets the criteria in 49 CFR 
1552.23(c), if the flight school uses an alternative training program to 
comply with this subpart.
    (7) Be signed by the flight school employee and an authorized 
official of the flight school.
    (b) Recordkeeping requirements. A flight school must establish and 
maintain the following records for one year after an individual no 
longer is a flight school employee:
    (1) A copy of the document required by paragraph (a) of this section 
for the initial and each recurrent security awareness training conducted 
for each flight school employee in accordance with this subpart; and
    (2) The alternative flight school security awareness training 
program used by the flight school, if the flight school uses such a 
program.
    (c) Inspection. A flight school must permit TSA and the Federal 
Aviation Administration to inspect the records required under paragraph 
(b) of this section during reasonable business hours.



PART 1560_SECURE FLIGHT PROGRAM--Table of Contents



                            Subpart A_General

Sec.
1560.1 Scope, purpose, and implementation.
1560.3 Terms used in this part.

 Subpart B_Collection and Transmission of Secure Flight Passenger Data 
                         for Watch List Matching

1560.101 Request for and transmission of information to TSA.
1560.103 Privacy notice.
1560.105 Denial of transport or sterile area access; designation for 
          enhanced screening.
1560.107 Use of watch list matching results by covered aircraft 
          operators.
1560.109 Aircraft Operator Implementation Plan.
1560.111 Covered airport operators.

                       Subpart C_Passenger Redress

1560.201 Applicability.
1560.203 Representation by counsel.
1560.205 Redress process.
1560.207 Oversight of process.

    Authority: 49 U.S.C. 114, 40113, 44901, 44902, 44903.

    Source: 73 FR 64061, Oct. 28, 2008, unless otherwise noted.

[[Page 402]]



                            Subpart A_General



Sec.  1560.1  Scope, purpose, and implementation.

    (a) Scope. This part applies to the following:
    (1) Aircraft operators required to adopt a full program under 49 CFR 
1544.101(a).
    (2) Foreign air carriers required to adopt a security program under 
49 CFR 1546.101(a) or (b).
    (3) Airport operators that seek to authorize individuals to enter a 
sterile area for purposes approved by TSA.
    (4) Individuals who seek redress in accordance with subpart C of 
this part.
    (b) Purpose. The purpose of this part is to enhance the security of 
air travel within the United States and support the Federal government's 
counterterrorism efforts by assisting in the detection of individuals 
identified on Federal government watch lists who seek to travel by air, 
and to facilitate the secure travel of the public. This part enables TSA 
to operate a watch list matching program known as Secure Flight, which 
involves the comparison of passenger and non-traveler information with 
the identifying information of individuals on Federal government watch 
lists.
    (c) Implementation. Each covered aircraft operator must begin 
requesting the information described in Sec.  1560.101(a)(1) and have 
the capability to transmit SFPD to TSA in accordance with its Aircraft 
Operator Implementation Plan (AOIP) as approved by TSA. Each covered 
aircraft operator must begin transmitting information to TSA as required 
in Sec.  1560.101(b) on the date specified in, and in accordance with, 
its AOIP as approved by TSA. TSA will inform each covered aircraft 
operator 60 days prior to the date on which TSA will assume the watch 
list matching function from that aircraft operator.



Sec.  1560.3  Terms used in this part.

    In addition to the terms in Sec. Sec.  1500.3 and 1540.5 of this 
chapter, the following terms apply to this part:
    Aircraft Operator Implementation Plan or AOIP means a written 
procedure describing how and when a covered aircraft operator or airport 
operator transmits passenger and flight information and non-traveler 
information to TSA, as well as other related matters.
    Airport code means the official code, designated by the 
International Air Transport Association (IATA), for an airport.
    Consolidated User Guide means a document developed by the Department 
of Homeland Security (DHS) to provide guidance to aircraft operators 
that must transmit passenger information to one or more components of 
DHS on operational processing and transmission of passenger information 
to all required components in a unified manner. The Consolidated User 
Guide is part of the covered aircraft operator's security program.
    Covered aircraft operator means each aircraft operator required to 
carry out a full program under 49 CFR 1544.101(a) or a security program 
under 49 CFR 1546.101(a) or (b).
    Covered airport operator means each airport operator that seeks to 
authorize non-traveling individuals to enter a sterile area for a 
purpose permitted by TSA.
    Covered flight means any operation of an aircraft that is subject to 
or operates under a full program under 49 CFR 1544.101(a). Covered 
flight also means any operation of an aircraft that is subject to or 
operates under a security program under 49 CFR 1546.101(a) or (b) 
arriving in or departing from the United States, or overflying the 
continental United States. Covered flight does not include any flight 
for which TSA has determined that the Federal government is conducting 
passenger matching comparable to the matching conducted pursuant to this 
part.
    Date of birth means the day, month, and year of an individual's 
birth.
    Department of Homeland Security Traveler Redress Inquiry Program or 
DHS TRIP means the voluntary program through which individuals may 
request redress if they believe they have been:
    (1) Denied or delayed boarding transportation due to DHS screening 
programs;
    (2) Denied or delayed entry into or departure from the United States 
at a port of entry; or

[[Page 403]]

    (3) Identified for additional (secondary) screening at U.S. 
transportation facilities, including airports, and seaports.
    Full name means an individual's full name as it appears on a 
verifying identity document held by the individual.
    Inhibited status means the status of a passenger or non-traveling 
individual to whom TSA has instructed a covered aircraft operator or a 
covered airport operator not to issue a boarding pass or to provide 
access to the sterile area.
    Itinerary information means information reflecting a passenger's or 
non-traveling individual's itinerary specified in the covered aircraft 
operator's AOIP. For non-traveling individuals, itinerary information is 
the airport code for the sterile area to which the non-traveler seeks 
access. For passengers, itinerary information includes the following:
    (1) Departure airport code.
    (2) Aircraft operator.
    (3) Scheduled departure date.
    (4) Scheduled departure time.
    (5) Scheduled arrival date.
    (6) Scheduled arrival time.
    (7) Arrival airport code.
    (8) Flight number.
    (9) Operating carrier (if available).
    Known Traveler Number means a unique number assigned to an 
individual for whom the Federal government has conducted a security 
threat assessment and determined does not pose a security threat.
    Non-traveling individual or non-traveler means an individual to whom 
a covered aircraft operator or covered airport operator seeks to issue 
an authorization to enter the sterile area of an airport in order to 
escort a minor or a passenger with disabilities or for some other 
purpose permitted by TSA. The term non-traveling individual or non-
traveler does not include employees or agents of airport or aircraft 
operators or other individuals whose access to a sterile area is 
governed by another TSA requirement.
    Overflying the continental United States means departing from an 
airport or location outside the United States and transiting the 
airspace of the continental United States en route to another airport or 
location outside the United States. Airspace of the continental United 
States includes the airspace over the lower 48 states of the United 
States, not including Alaska or Hawaii, and the airspace overlying the 
territorial waters between the U.S. coast of the lower 48 states and 12 
nautical miles from the continental U.S. coast. Overflying the 
continental United States does not apply to:
    (1) Flights that transit the airspace of the continental United 
States between two airports or locations in the same country, where that 
country is Canada or Mexico; or
    (2) Any other category of flights that the Assistant Secretary of 
Homeland Security (Transportation Security Administration) designates in 
a notice in the Federal Register.
    Passenger means an individual who is traveling on a covered flight. 
The term passenger does not include:
    (1) A crew member who is listed as a crew member on the flight 
manifest; or
    (2) An individual with flight deck privileges under 49 CFR 1544.237 
traveling on the flight deck.
    Passenger Resolution Information or PRI means the information that a 
covered aircraft operator or covered airport operator transmits to TSA 
for an individual who TSA places in an inhibited status and from whom 
the covered aircraft operator or covered airport operator is required to 
request additional information and a Verifying Identity Document. 
Passenger Resolution Information includes, but is not limited to, the 
following:
    (1) Covered aircraft operator's agent identification number or agent 
sine.
    (2) Type of Verifying Identity Document presented by the passenger.
    (3) The identification number on the Verifying Identity Document.
    (4) Issue date of the Verifying Identity Document.
    (5) Name of the governmental authority that issued the Verifying 
Identity Document.
    (6) Physical attributes of the passenger such as height, eye color, 
or scars, if requested by TSA.
    Passport information means the following information from an 
individual's passport:
    (1) Passport number.
    (2) Country of issuance.
    (3) Expiration date.

[[Page 404]]

    (4) Gender.
    (5) Full name.
    Redress Number means the number assigned by DHS to an individual 
processed through the redress procedures described in 49 CFR part 1560, 
subpart C.
    Secure Flight Passenger Data or (SFPD) means information regarding a 
passenger or non-traveling individual that a covered aircraft operator 
or covered airport operator transmits to TSA, to the extent available, 
pursuant to Sec.  1560.101. SFPD is the following information regarding 
a passenger or non-traveling individual:
    (1) Full name.
    (2) Date of birth.
    (3) Gender.
    (4) Redress number or Known Traveler Number (once implemented).
    (5) Passport information.
    (6) Reservation control number.
    (7) Record sequence number.
    (8) Record type.
    (9) Passenger update indicator.
    (10) Traveler reference number.
    (11) Itinerary information.
    Self-service kiosk means a kiosk operated by a covered aircraft 
operator that is capable of accepting a passenger reservation or a 
request for authorization to enter a sterile area from a non-traveling 
individual.
    Sterile area means ``sterile area'' as defined in 49 CFR 1540.5.
    Terrorist Screening Center or TSC means the entity established by 
the Attorney General to carry out Homeland Security Presidential 
Directive 6 (HSPD-6), dated September 16, 2003, to consolidate the 
Federal government's approach to terrorism screening and provide for the 
appropriate and lawful use of terrorist information in screening 
processes.
    Verifying Identity Document means one of the following documents:
    (1) An unexpired passport issued by a foreign government.
    (2) An unexpired document issued by a U.S. Federal, State, or tribal 
government that includes the following information for the individual:
    (i) Full name.
    (ii) Date of birth.
    (iii) Photograph.
    (3) Such other documents that TSA may designate as valid verifying 
identity documents.
    Watch list refers to the No Fly and Selectee List components of the 
Terrorist Screening Database maintained by the Terrorist Screening 
Center. For certain flights, the ``watch list'' may include the larger 
set of watch lists maintained by the Federal government as warranted by 
security considerations.



 Subpart B_Collection and Transmission of Secure Flight Passenger Data 
                         for Watch List Matching



Sec.  1560.101  Request for and transmission of information to TSA.

    (a) Request for information. (1) Each covered aircraft operator must 
request the full name, gender, date of birth, and Redress Number for 
passengers on a covered flight and non-traveling individuals seeking 
access to an airport sterile area. For reservations made 72 hours prior 
to the scheduled time of departure for each covered flight, the covered 
aircraft operator must collect full name, gender, and date of birth for 
each passenger when the reservation is made or at a time no later than 
72 hours prior to the scheduled time of departure of the covered flight. 
For an individual that makes a reservation for a covered flight within 
72 hours of the scheduled time of departure for the covered flight, the 
covered aircraft operator must collect the individual's full name, date 
of birth, and gender at the time of reservation. The covered aircraft 
operator must include the information provided by the individual in 
response to this request in the SFPD.
    (i) Except as provided in paragraph (a)(1)(ii) of this section, each 
covered aircraft operator must begin requesting the information 
described in paragraph (a)(1) of this section in accordance with its 
AOIP as approved by TSA.
    (ii) An aircraft operator that becomes a covered aircraft operator 
after the effective date of this part must begin requesting the 
information on the date it becomes a covered aircraft operator.

[[Page 405]]

    (2) Beginning on a date no later than 30 days after being notified 
in writing by TSA, each covered aircraft operator must additionally 
request the Known Traveler Number for passengers on a covered flight and 
non-traveling individuals seeking access to an airport sterile area. The 
covered aircraft operator must include the Known Traveler Number 
provided by the passenger in response to this request in the SFPD.
    (3) Each covered aircraft operator may not submit SFPD for any 
passenger on a covered flight who does not provide a full name, date of 
birth and gender. Each covered aircraft operator may not accept a 
request for authorization to enter a sterile area from a non-traveling 
individual who does not provide a full name, date of birth and gender.
    (4) Each covered aircraft operator must ensure that each third party 
that accepts a reservation, or accepts a request for authorization to 
enter a sterile area, on the covered aircraft operator's behalf complies 
with the requirements of this section.
    (5) If the covered aircraft operator also has an operation of an 
aircraft that is subject to 49 CFR 1544.101(b) through (i), the covered 
aircraft operator may submit SFPD for passengers on these operations for 
watch list matching under this part, provided that the covered aircraft 
operator--
    (i) Collects and transmits the SFPD for the passengers in accordance 
with this section;
    (ii) Provides the privacy notice to the passengers in accordance 
with 49 CFR 1560.103; and
    (iii) Complies with the requirements of 49 CFR 1560.105 and 
1560.107.
    (b) Transmission of Secure Flight Passenger Data to TSA. Beginning 
on the date provided in a covered aircraft operator's AOIP, the covered 
aircraft operator must electronically transmit SFPD to TSA, prior to the 
scheduled departure of each covered flight, in accordance with its AOIP 
as approved by TSA.
    (1) To the extent available, each covered aircraft operator must 
electronically transmit SFPD to TSA for each passenger on a covered 
flight.
    (2) Each covered aircraft operator must transmit SFPD to TSA prior 
to the scheduled flight departure time, in accordance with its AOIP as 
approved by TSA.
    (c) Transmission of non-traveler information to TSA. Beginning on 
the date provided in a covered aircraft operator's AOIP, the covered 
aircraft operator must electronically transmit SFPD to TSA for each non-
traveling individual, prior to authorizing access to an airport sterile 
area.
    (d) Retransmission of information. Each covered aircraft operator 
must retransmit to TSA updates to the information listed in paragraphs 
(b) and (c) of this section to reflect most recent changes to that 
information, as specified in its AOIP as approved by TSA.



Sec.  1560.103  Privacy notice.

    (a) Electronic collection of information--(1) Current electronic 
collection of information. Prior to collecting information through a Web 
site or self-service kiosk from a passenger or non-traveling individual 
in order to comply with Sec.  1560.101(a), a covered aircraft operator 
must make available the complete privacy notice set forth in paragraph 
(b) of this section.
    (2) Other electronic collection of information. If a covered 
aircraft operator collects information directly from a passenger or non-
traveling individual in order to comply with Sec.  1560.101(a) through 
an electronic means not described in paragraph (a)(1) of this section, 
the covered aircraft operator must make available the complete privacy 
notice set forth in paragraph (b) of this section.
    (3) Third party Web site. Each covered aircraft operator must ensure 
that each third party that maintains a Web site capable of making a 
reservation for the covered aircraft operator's reservation system, make 
available on its Web site the complete privacy notice set forth in 
paragraph (b) of this section prior to collecting information through 
the Web site.
    (b) Privacy notice. The covered aircraft operator may substitute its 
name for the word ``us,'' but the complete privacy notice otherwise must 
be identical to the following paragraph unless TSA has approved 
alternative language:


[[Page 406]]


    The Transportation Security Administration of the U.S. Department of 
Homeland Security requires us to collect information from you for 
purposes of watch list screening, under the authority of 49 U.S.C. 
section 114, and the Intelligence Reform and Terrorism Prevention Act of 
2004. Providing this information is voluntary; however, if it is not 
provided, you may be subject to additional screening or denied transport 
or authorization to enter a sterile area. TSA may share information you 
provide with law enforcement or intelligence agencies or others under 
its published system of records notice. For more on TSA Privacy 
policies, or to view the system of records notice and the privacy impact 
assessment, please see TSA's Web site at www.tsa.gov.



Sec.  1560.105  Denial of transport or sterile area access; designation for enhanced screening.

    (a) Applicability. (1) This section applies to each covered aircraft 
operator beginning on the date that TSA assumes the watch list matching 
function for the passengers and non-traveling individuals to whom that 
covered aircraft operator issues a boarding pass or other authorization 
to enter a sterile area. TSA will provide prior written notification to 
the covered aircraft operator no later than 60 days before the date on 
which it will assume the watch list matching function from that covered 
aircraft operator.
    (2) Prior to the date that TSA assumes the watch list matching 
function from a covered aircraft operator, the covered aircraft operator 
must comply with existing watch list matching procedures for passengers 
and non-traveling individuals, including denial of transport or sterile 
area access or designation for enhanced screening for individuals 
identified by the covered aircraft operator or TSA.
    (b) Watch list matching results. Except as provided in paragraph (b) 
of this section, a covered aircraft operator must not issue a boarding 
pass or other authorization to enter a sterile area to a passenger or a 
non-traveling individual, and must not allow that individual to board an 
aircraft or enter a sterile area, until TSA informs the covered aircraft 
operator of the results of watch list matching for that passenger or 
non-traveling individual, in response to the covered aircraft operator's 
most recent SFPD submission for that passenger or non-traveling 
individual.
    (1) Denial of boarding pass. If TSA sends a covered aircraft 
operator a boarding pass printing result that says the passenger or non-
traveling individual must be placed on inhibited status, the covered 
aircraft operator must not issue a boarding pass or other authorization 
to enter a sterile area to that individual and must not allow that 
individual to board an aircraft or enter a sterile area.
    (2) Selection for enhanced screening. If TSA sends a covered 
aircraft operator a boarding pass printing result that says the 
passenger has been selected for enhanced screening at a security 
checkpoint, the covered aircraft operator may issue a boarding pass to 
that individual and must identify the individual for enhanced screening, 
in accordance with procedures approved by TSA. The covered aircraft 
operator must place a code on the boarding pass that meets the 
requirements described in the Consolidated User Guide. If TSA sends a 
covered aircraft operator a boarding pass printing result that says the 
non-traveling individual has been selected for enhanced screening at a 
security checkpoint, the covered aircraft operator must not issue an 
authorization to enter a sterile area to that individual.
    (3) Cleared for boarding or entry into a sterile area. If TSA sends 
a covered aircraft operator a boarding pass printing result that 
instructs a covered aircraft operator that a passenger or non-traveling 
individual is cleared, the covered aircraft operator may issue a 
boarding pass or other authorization to enter a sterile area to that 
individual, unless required under another TSA requirement to identify 
the passenger or non-traveling individual for enhanced screening or to 
deny entry into the sterile area. The covered aircraft operator must 
place a code on the boarding pass or authorization to enter the sterile 
area that meets the requirements described in the Consolidated User 
Guide.
    (4) Override by a covered aircraft operator. No covered aircraft 
operator may override a TSA boarding pass printing result that instructs 
a covered aircraft operator to place a passenger or non-

[[Page 407]]

traveling individual in an inhibited status or to identify a passenger 
or non-traveling individual for enhanced screening, unless explicitly 
authorized by TSA to do so.
    (5) Updated SFPD from covered aircraft operator. When a covered 
aircraft operator sends updated SFPD to TSA under Sec.  1560.101(d) for 
a passenger or non-traveling individual for whom TSA has already issued 
a boarding pass printing result, all previous TSA results concerning the 
passenger or non-traveling individual are voided. The covered aircraft 
operator may not issue a boarding pass or grant authorization to enter a 
sterile area until it receives an updated result from TSA authorizing 
the issuance of a boarding pass or authorization to enter a sterile 
area. Upon receiving an updated result from TSA, the covered aircraft 
operator must acknowledge receipt of the updated result, comply with the 
updated result, and disregard all previous boarding pass printing 
results.
    (6) Updated boarding pass printing results from TSA. After TSA sends 
a covered aircraft operator a result under paragraph (b)(1), (b)(2), or 
(b)(3) of this section, TSA may receive additional information 
concerning the passenger or non-traveling individual and may send an 
updated boarding pass printing result concerning that passenger or non-
traveling individual to the covered aircraft operator. Upon receiving an 
updated boarding pass printing result from TSA, the covered aircraft 
operator must acknowledge receipt of the updated result, comply with the 
updated result, and disregard all previous results.
    (7) Boarding pass issuance for covered flights to or overflying the 
United States. Covered aircraft operators may permit another aircraft 
operator to issue a boarding pass for a covered flight departing from a 
foreign location to the United States or overflying the United States 
without regard to the requirements in paragraphs (b)(1) through (b)(6) 
of this section provided that--
    (i) Before allowing the individual to board the aircraft for a 
covered flight, the covered aircraft operator confirms that it has 
received a boarding pass printing result from DHS for individuals who 
are issued boarding passes under paragraph (b)(7) of this section;
    (ii) Before allowing the individual to board an aircraft for a 
covered flight, the covered aircraft operator applies the measures in 
its security program to prevent an individual for whom DHS has returned 
an inhibited status boarding pass printing result under paragraph (b)(1) 
of this section from boarding the aircraft; and
    (iii) The covered aircraft operator applies the measures in its 
security program, as provided in 49 CFR part 1544, subpart B or 49 CFR 
part 1546, subpart B, to ensure that an individual for whom DHS returns 
a Selectee result under paragraph (b)(2) of this section undergoes 
enhanced screening pursuant to the covered aircraft operator's security 
program prior to that individual boarding the aircraft.
    (c) Request for identification--(1) In general. If TSA has not 
informed the covered aircraft operator of the results of watch list 
matching for an individual by the time the individual attempts to check 
in, or informs the covered aircraft operator that an individual has been 
placed in inhibited status, the aircraft operator must request from the 
individual a verifying identity document pursuant to procedures in its 
security program., as provided in 49 CFR part 1544, subpart B or 49 CFR 
part 1546, subpart B. The individual must present a verifying identity 
document to the covered aircraft operator at the airport.
    (2) Transmission of Updated Secure Flight Passenger Data. Upon 
reviewing a passenger's verifying identity document, the covered 
aircraft operator must transmit the SFPD elements from the individual's 
verifying identity document to TSA.
    (3) Provision of Passenger Resolution Information. If requested by 
TSA, the covered aircraft operator must also provide to TSA the 
individual's Passenger Resolution Information as specified by TSA.
    (4) Exception for minors. If a covered aircraft operator is required 
to obtain information from an individual's verifying identity document 
under this paragraph (c), and the individual is younger than 18 years of 
age and does

[[Page 408]]

not have a verifying identity document, TSA may, on a case-by-case 
basis, authorize the minor or an adult accompanying the minor to state 
the individual's full name and date of birth in lieu of providing a 
verifying identity document.
    (d) Failure to obtain identification. If a passenger or non-
traveling individual does not present a verifying identity document when 
requested by the covered aircraft operator, in order to comply with 
paragraph (c) of this section, the covered aircraft operator must not 
issue a boarding pass or give authorization to enter a sterile area to 
that individual and must not allow that individual to board an aircraft 
or enter a sterile area, unless otherwise authorized by TSA.



Sec.  1560.107  Use of watch list matching results by covered aircraft operators.

    A covered aircraft operator must not use any watch list matching 
results provided by TSA for purposes other than those provided in Sec.  
1560.105 and other security purposes.



Sec.  1560.109  Aircraft Operator Implementation Plan.

    (a) Content of the Aircraft Operator Implementation Plan (AOIP). 
Each covered aircraft operator must adopt and carry out an AOIP that 
sets forth the following:
    (1) The covered aircraft operator's test plan with TSA.
    (2) When the covered operator will begin to collect and transmit to 
TSA each data element of the SFPD for each covered flight.
    (3) The specific means by which the covered aircraft operator will 
request and transmit information under Sec.  1560.101, the timing and 
frequency of transmission, and any other related matters, in accordance 
with the Consolidated User Guide.
    (b) Adoption of Aircraft Operator Implementation Plan (AOIP). Each 
covered aircraft operator must adopt an AOIP pursuant to the procedures 
set forth in this paragraph (b).
    (1) TSA notifies each covered aircraft operator in writing of a 
proposed AOIP, fixing a period of not less than 30 days within which the 
covered aircraft operator may submit written information, views, and 
arguments on the proposed AOIP.
    (2) After considering all relevant material, TSA's designated 
official notifies each covered aircraft operator of its AOIP. The AOIP 
becomes effective not less than 30 days after the covered aircraft 
operator receives the notice of its AOIP, unless the covered aircraft 
operator petitions the Assistant Secretary or designated official to 
reconsider no later than 15 days before the effective date of the AOIP. 
The covered aircraft operator must send the petition for reconsideration 
to the designated official. A timely petition for reconsideration stays 
the effective date of the AOIP.
    (3) Upon receipt of a petition for reconsideration, the designated 
official either amends the AOIP or transmits the petition, together with 
any pertinent information, to the Assistant Secretary or designee for 
reconsideration. The Assistant Secretary or designee disposes of the 
petition within 30 days of receipt by either directing the designated 
official to withdraw or amend the AOIP, or by affirming the AOIP.
    (4) TSA may, at its discretion, grant extensions to any schedule 
deadlines, on its own initiative or upon the request of a covered 
aircraft operator.
    (c) Incorporation into Security Program. Once an AOIP is approved, 
the AOIP becomes part of the covered aircraft operator's security 
program as described in 49 CFR part 1544, subpart B, or 49 CFR part 
1546, subpart B, as appropriate, and any amendments will be made in 
accordance with the procedures in those subparts.
    (d) Handling of Aircraft Operator Implementation Plan (AOIP). An 
AOIP contains sensitive security information (SSI) and must be handled 
and protected in accordance with 49 CFR part 1520.



Sec.  1560.111  Covered airport operators.

    (a) Applicability. This section applies to a covered airport 
operator that has a program approved by TSA through which the covered 
airport operator may authorize non-traveling individuals to enter a 
sterile area.
    (b) Requirements. A covered airport operator must adopt and carry 
out an

[[Page 409]]

AOIP in accordance with Sec.  1560.109. Each covered airport operator 
must comply with the procedures required of covered aircraft operators 
in Sec. Sec.  1560.101(a), (c), and (d), 1560.103, and 1560.107 of this 
part and any other applicable TSA requirements when authorizing non-
traveling individuals to enter a sterile area.



                       Subpart C_Passenger Redress



Sec.  1560.201  Applicability.

    This subpart applies to individuals who believe they have been 
improperly or unfairly delayed or prohibited from boarding an aircraft 
or entering a sterile area as a result of the Secure Flight program.



Sec.  1560.203  Representation by counsel.

    A person may be represented by counsel at his or her own expense 
during the redress process.



Sec.  1560.205  Redress process.

    (a) If an individual believes he or she has been improperly or 
unfairly delayed or prohibited from boarding an aircraft or entering a 
sterile area as a result of the Secure Flight program, the individual 
may seek assistance through the redress process established under this 
section.
    (b) An individual may obtain the forms and information necessary to 
initiate the redress process on the DHS TRIP Web site at http://
www.dhs.gov/trip or by contacting the DHS TRIP office by mail. 
Individuals should send written requests for forms to the DHS TRIP 
office and include their name and address in the request. DHS will 
provide the necessary forms and information to individuals through its 
Web site or by mail.
    (c) The individual must send to the DHS TRIP office the personal 
information and copies of the specified identification documents. If TSA 
needs additional information in order to continue the redress process, 
TSA will so notify the individual in writing and request that additional 
information. The DHS TRIP Office will assign the passenger a unique 
identifier, which TSA will recognize as the Redress Number, and the 
passenger may use that Redress Number in future correspondence with TSA 
and when making future travel reservations.
    (d) TSA, in coordination with the TSC and other appropriate Federal 
law enforcement or intelligence agencies, if necessary, will review all 
the documentation and information requested from the individual, correct 
any erroneous information, and provide the individual with a timely 
written response.



Sec.  1560.207  Oversight of process.

    The redress process and its implementation are subject to review by 
the TSA and DHS Privacy Offices and the TSA and DHS Offices for Civil 
Rights and Civil Liberties.



PART 1562_OPERATIONS IN THE WASHINGTON, DC, METROPOLITAN AREA--Table of Contents



  Subpart A_Maryland Three Airports: Enhanced Security Procedures for 
Operations at Certain Airports in the Washington, DC, Metropolitan Area 
                         Flight Restricted Zone

Sec.
1562.1 Scope and definitions.
1562.3 Operating requirements.

 Subpart B_Ronald Reagan Washington National Airport: Enhanced Security 
                    Procedures for Certain Operations

1562.21 Scope, general requirements, and definitions.
1562.23 Aircraft operator and passenger requirements.
1562.25 Fixed base operator requirements.
1562.27 Costs.
1562.29 Armed security officer requirements.

    Authority: 49 U.S.C. 114, 40114, Sec. 823, Pub. L. 108-176, 117 
Stat. 2595.

    Source: 70 FR 7162, Feb. 10, 2005, unless otherwise noted.



  Subpart A_Maryland Three Airports: Enhanced Security Procedures for 
Operations at Certain Airports in the Washington, DC, Metropolitan Area 
                         Flight Restricted Zone



Sec.  1562.1  Scope and definitions.

    (a) Scope. This subpart applies to the following airports, and 
individuals who

[[Page 410]]

operate an aircraft to or from those airports, that are located within 
the airspace designated as the Washington, DC, Metropolitan Area Flight 
Restricted Zone by the Federal Aviation Administration:
    (1) College Park Airport (CGS);
    (2) Potomac Airfield (VKX); and
    (3) Washington Executive/Hyde Field (W32).
    (b) Definitions. For purposes of this section:
    Airport security coordinator means the official at a Maryland Three 
Airport who is responsible for ensuring that the airport's security 
procedures are implemented and followed.
    Maryland Three Airport means any of the airports specified in 
paragraph (a) of this section.



Sec.  1562.3  Operating requirements.

    (a) Airport operator requirements. Each operator of a Maryland Three 
Airport must:
    (1) Appoint an airport employee as the airport security coordinator;
    (2) Maintain and carry out security procedures approved by TSA;
    (3) Maintain at the airport a copy of the airport's TSA-approved 
security procedures;
    (4) Maintain at the airport a copy of each Federal Aviation 
Administration Notice to Airmen and rule that affects security 
procedures at the Maryland Three Airports; and
    (5) Permit officials authorized by TSA to inspect--
    (i) The airport;
    (ii) The airport's TSA-approved security procedures; and
    (iii) Any other documents required under this section.
    (b) Airport security coordinator requirements. Each airport security 
coordinator for a Maryland Three Airport must be approved by TSA. To 
obtain TSA approval, an airport security coordinator must:
    (1) Present to TSA, in a form and manner acceptable to TSA, his or 
her--
    (i) Name;
    (ii) Social Security Number;
    (iii) Date of birth;
    (iv) Address;
    (v) Phone number; and
    (vi) Fingerprints.
    (2) Successfully complete a TSA terrorist threat assessment; and
    (3) Not have been convicted or found not guilty by reason of 
insanity, in any jurisdiction, during the 10 years prior to applying for 
authorization to operate to or from the airport, or while authorized to 
operate to or from the airport, of any crime specified in 49 CFR 
1542.209 or 1572.103.
    (c) Security procedures. To be approved by TSA, an airport's 
security procedures, at a minimum, must:
    (1) Identify and provide contact information for the airport's 
airport security coordinator.
    (2) Contain a current record of the individuals and aircraft 
authorized to operate to or from the airport.
    (3) Contain procedures to--
    (i) Monitor the security of aircraft at the airport during 
operational and non-operational hours; and
    (ii) Alert the aircraft owner(s) and operator(s), the airport 
operator, and TSA of unsecured aircraft.
    (4) Contain procedures to implement and maintain security awareness 
procedures at the airport.
    (5) Contain procedures for limited approval of pilots who violate 
the Washington, DC, Metropolitan Area Flight Restricted Zone and are 
forced to land at the airport.
    (6) Contain any additional procedures required by TSA to provide for 
the security of aircraft operations to or from the airport.
    (d) Amendments to security procedures. Airport security procedures 
approved by TSA remain in effect unless TSA determines that--
    (1) Operations at the airport have not been conducted in accordance 
with those procedures; or
    (2) The procedures must be amended to provide for the security of 
aircraft operations to or from the airport.
    (e) Pilot requirements for TSA approval. Except as specified in 
paragraph (g) of this section, each pilot of an aircraft operating to or 
from any of the Maryland Three Airports must be approved by TSA. To 
obtain TSA approval, a pilot must:
    (1) Present to TSA--
    (i) The pilot's name;
    (ii) The pilot's Social Security Number;

[[Page 411]]

    (iii) The pilot's date of birth;
    (iv) The pilot's address;
    (v) The pilot's phone number;
    (vi) The pilot's current and valid airman certificate or current 
student pilot certificate;
    (vii) The pilot's current medical certificate;
    (viii) One form of Government-issued picture identification of the 
pilot;
    (ix) The pilot's fingerprints, in a form and manner acceptable to 
TSA; and
    (x) A list containing the make, model, and registration number of 
each aircraft that the pilot intends to operate to or from the airport.
    (2) Successfully complete a TSA terrorist threat assessment.
    (3) Receive a briefing acceptable to TSA and the Federal Aviation 
Administration that describes procedures for operating to and from the 
airport.
    (4) Not have been convicted or found not guilty by reason of 
insanity, in any jurisdiction, during the 10 years prior to applying for 
authorization to operate to or from the airport, or while authorized to 
operate to or from the airport, of any crime specified in 49 CFR 
1542.209 or 1572.103.
    (5) Not, in TSA's discretion, have a record on file with the Federal 
Aviation Administration of a violation of--
    (i) A prohibited area designated under 14 CFR part 73;
    (ii) A flight restriction established under 14 CFR 91.141;
    (iii) Special security instructions issued under 14 CFR 99.7;
    (iv) A restricted area designated under 14 CFR part 73;
    (v) Emergency air traffic rules issued under 14 CFR 91.139;
    (vi) A temporary flight restriction designated under 14 CFR 91.137, 
91.138, or 91.145; or
    (vii) An area designated under 14 CFR 91.143.
    (f) Additional pilot requirements. Except as specified in paragraph 
(g) of this section, each pilot of an aircraft operating to or from any 
of the Maryland Three Airports must:
    (1) Protect from unauthorized disclosure any identification 
information issued by TSA or the Federal Aviation Administration for the 
conduct of operations to or from the airport.
    (2) Secure the aircraft after returning to the airport from any 
flight.
    (3) Comply with any other requirements for operating to or from the 
airport specified by TSA or the Federal Aviation Administration.
    (g) Operations to any of the Maryland Three Airports. A pilot who is 
approved by TSA in accordance with paragraph (d) of this section may 
operate an aircraft to any of the Maryland Three Airports, provided that 
the pilot--
    (1) Files an instrument flight rules or visual flight rules flight 
plan with Leesburg Automated Flight Service Station;
    (2) Obtains an Air Traffic Control clearance with a discrete 
transponder code; and
    (3) Follows any arrival/departure procedures required by the Federal 
Aviation Administration.
    (h) U.S. Armed forces, law enforcement, and aeromedical services 
aircraft. An individual may operate a U.S. Armed Forces, law 
enforcement, or aeromedical services aircraft on an authorized mission 
to or from any of the Maryland Three Airports provided that the 
individual complies with any requirements for operating to or from the 
airport specified by TSA or the Federal Aviation Administration.
    (i) Continuing responsibilities. (1) If an airport security 
coordinator, or a pilot who is approved to operate to or from any of the 
Maryland Three Airports, is convicted or found not guilty by reason of 
insanity, in any jurisdiction, of any crime specified in 49 CFR 1542.209 
or 1572.103, the airport security coordinator or pilot must notify TSA 
within 24 hours of the conviction or finding of not guilty by reason of 
insanity. TSA may withdraw its approval of the airport security 
coordinator or pilot as a result of the conviction or finding of not 
guilty by reason of insanity.
    (2) If a pilot who is approved to operate to or from any of the 
Maryland Three Airports commits any of the violations described in 
paragraph (e)(5) of this section, the pilot must notify TSA within 24 
hours of the violation. TSA, in its discretion, may withdraw its 
approval of the pilot as a result of the violation.
    (3) If an airport security coordinator, or a pilot who is approved 
to operate to

[[Page 412]]

or from any of the Maryland Three Airports, is determined by TSA to pose 
a threat to national or transportation security, or a threat of 
terrorism, TSA may withdraw its approval of the airport security 
coordinator or pilot.
    (j) Waivers. TSA, in coordination with the Federal Aviation 
Administration, the United States Secret Service, and any other relevant 
agency, may permit an operation to or from any of the Maryland Three 
Airports, in deviation from the provisions of this section, if TSA finds 
that such action--
    (1) Is in the public interest; and
    (2) Provides the level of security required by this section.



 Subpart B_Ronald Reagan Washington National Airport: Enhanced Security 
                    Procedures for Certain Operations

    Source: 70 FR 41600, July 19, 2005, unless otherwise noted.



Sec.  1562.21  Scope, general requirements, and definitions.

    (a) Scope. This subpart applies to aircraft operations into or out 
of Ronald Reagan Washington National Airport (DCA), fixed base operators 
located at DCA or gateway airports; individuals designated as a security 
coordinator by aircraft operators or fixed base operators; and 
crewmembers, passengers, and armed security officers on aircraft 
operations subject to this subpart.
    (b) General requirements. Each person operating an aircraft into or 
out of DCA must comply with this subpart, except:
    (1) Military, law enforcement, and medivac aircraft operations;
    (2) Federal and State government aircraft operations operating under 
an airspace waiver approved by TSA and the Federal Aviation 
Administration;
    (3) All-cargo aircraft operations; and
    (4) Passenger aircraft operations conducted under:
    (i) A full security program approved by TSA in accordance with 49 
CFR 1544.101(a); or
    (ii) A foreign air carrier security program approved by TSA in 
accordance with 49 CFR 1546.101(a) or (b).
    (c) Other security programs. Each aircraft operator required to 
comply with this subpart for an aircraft operation into or out of DCA 
must also comply with any other TSA-approved security program that 
covers that operation. If any requirements of the DASSP conflict with 
the requirements of another TSA-approved security program, the aircraft 
operation must be conducted in accordance with the requirements of the 
DASSP.
    (d) Definitions. For purposes of this subpart, the following 
definitions apply:
    Armed Security Officer Program means the security program approved 
by TSA, in coordination with the Federal Air Marshal Service, for 
security officers authorized to carry a firearm under Sec.  1562.29 of 
this part.
    Crewmember means a person assigned to perform duty in an aircraft 
during flight time. This does not include an armed security officer.
    DCA means Ronald Reagan Washington National Airport.
    DASSP means the aircraft operator security program (DCA Access 
Standard Security Program) approved by TSA under this part for aircraft 
operations into and out of DCA.
    FBO means a fixed base operator that has been approved by TSA under 
this part to serve as a last point of departure for flights into or out 
of DCA.
    FBO Security Program means the security program approved by TSA 
under this part for FBOs to serve flights into or out of DCA.
    Flightcrew member means a pilot, flight engineer, or flight 
navigator assigned to duty in an aircraft during flight time.
    Gateway airport means an airport that has been approved by TSA under 
this part as a last point of departure for flights into DCA under this 
part.
    Passenger means any person on an aircraft other than a flightcrew 
member. A ``passenger'' includes an armed security officer authorized to 
carry a firearm in accordance with the rule.



Sec.  1562.23  Aircraft operator and passenger requirements.

    (a) General. To operate into or out of DCA, an aircraft operator 
must:
    (1) Designate a security coordinator responsible for implementing 
the

[[Page 413]]

DASSP and other security requirements required under this section, and 
provide TSA with the security coordinator's contact information and 
availability in accordance with the DASSP.
    (2) Adopt and carry out the DASSP.
    (3) Ensure that each crewmember of an aircraft operating into or out 
of DCA meets the requirements of paragraph (c) of this section.
    (4) Apply for and receive a reservation from the Federal Aviation 
Administration and authorization from TSA for each flight into and out 
of DCA in accordance with paragraph (d) of this section.
    (5) Comply with the operating requirements in paragraph (e) of this 
section for each flight into and out of DCA.
    (6) Pay any costs and fees required under this part.
    (7) Restrict the distribution, disclosure, and availability of 
sensitive security information (SSI), as defined in part 1520 of this 
chapter, to persons with a need to know, and refer all requests for SSI 
by other persons to TSA.
    (8) Comply with any additional security procedures required by TSA 
through order, Security Directive, or other means.
    (b) Security coordinator. Each security coordinator designated by an 
aircraft operator under paragraph (a) of this section:
    (1) Must undergo a fingerprint-based criminal history records check 
that does not disclose that he or she has a disqualifying criminal 
offense as described in Sec.  1544.229(d) of this chapter. This standard 
is met if the security coordinator is in compliance with the 
fingerprint-based criminal history records check requirements of 
Sec. Sec.  1542.209, 1544.229, or 1544.230 of this chapter with his or 
her current employer.
    (2) Must submit to TSA his or her:
    (i) Legal name, including first, middle, and last; any applicable 
suffix, and any other names used.
    (ii) Current mailing address, including residential address if 
different than current mailing address.
    (iii) Date and place of birth.
    (iv) Social security number, (submission is voluntary, although 
recommended).
    (v) Citizenship status and date of naturalization if the individual 
is a naturalized citizen of the United States.
    (vi) Alien registration number, if applicable.
    (3) Must successfully complete a TSA security threat assessment.
    (4) May, if informed that a disqualifying offense has been 
disclosed, correct the record in accordance with the procedures set 
forth in paragraphs (h) and (i) of Sec.  1544.229 of this chapter 
regarding notification and correction of records.
    (c) Flightcrew member requirements. Each flightcrew member of an 
aircraft, as defined in 49 CFR 1540.5, operating into or out of DCA:
    (1) Must undergo a fingerprint-based criminal history records check 
that does not disclose that he or she has a disqualifying criminal 
offense as described in Sec.  1544.229(d) of this chapter. This standard 
is met if the flightcrew member is in compliance with the fingerprint-
based criminal history records check requirements of Sec. Sec.  
1542.209, 1544.229, or 1544.230 of this chapter with his or her current 
employer.
    (2) Must not have a record on file with the Federal Aviation 
Administration of a violation of--
    (i) A prohibited area designated under 14 CFR part 73;
    (ii) A flight restriction established under 14 CFR 91.141;
    (iii) Special security instructions issued under 14 CFR 99.7;
    (iv) A restricted area designated under 14 CFR part 73;
    (v) Emergency air traffic rules issued under 14 CFR 91.139;
    (vi) A temporary flight restriction designated under 14 CFR 91.137, 
91.138, or 91.145; or
    (vii) An area designated under 14 CFR 91.143.
    (3) May, if informed that a disqualifying offense has been 
disclosed, correct the record in accordance with the procedures set 
forth in paragraphs (h) and (i) of Sec.  1544.229 of this chapter 
regarding notification and correction of records.
    (d) Flight authorization requirements. To receive authorization to 
operate an aircraft into or out of DCA, an aircraft operator must follow 
the procedures in this paragraph.

[[Page 414]]

    (1) The aircraft operator must apply to the Federal Aviation 
Administration for a tentative reservation, in a form and manner 
approved by the Federal Aviation Administration.
    (2) The aircraft operator must submit to TSA, in a form and manner 
approved by TSA, the following information at least 24 hours prior to 
aircraft departure:
    (i) For each passenger and crewmember on the aircraft:
    (A) Legal name, including first, middle, and last; any applicable 
suffix, and any other names used.
    (B) Current mailing address, including residential address if 
different than current mailing address.
    (C) Date and place of birth.
    (D) Social security number, (submission is voluntary, although 
recommended).
    (E) Citizenship status and date of naturalization if the individual 
is a naturalized citizen of the United States.
    (F) Alien registration number, if applicable.
    (ii) The registration number of the aircraft.
    (iii) The flight plan.
    (iv) Any other information required by TSA.
    (3) TSA will conduct a name-based security threat assessment for 
each passenger and crewmember. If TSA notifies the aircraft operator 
that a passenger or crewmember may pose a security threat, the aircraft 
operator must ensure that the passenger or crewmember does not board the 
aircraft before the aircraft departs out of DCA or out of a gateway 
airport to DCA.
    (4) If TSA approves the flight, TSA will transmit such approval to 
the Federal Aviation Administration for assignment of a final 
reservation to operate into or out of DCA. Once the Federal Aviation 
Administration assigns the final reservation, TSA will notify the 
aircraft operator.
    (5) TSA may, at its discretion, cancel any or all flight approvals 
at any time without prior notice to the aircraft operator.
    (6) TSA may, at its discretion, permit a flight into or out of DCA 
to deviate from the requirements of this subpart, if TSA finds that such 
action would not be detrimental to transportation security or the safe 
operation of the aircraft.
    (7) TSA may, at its discretion, require any flight into or out of 
DCA under this subpart to comply with additional security measures.
    (e) Operating requirements. Each aircraft operator must:
    (1) Ensure that each flight into DCA departs from a gateway airport 
and makes no intermediate stops before arrival at DCA.
    (2) Ensure that each passenger and crewmember on an aircraft 
operating into or out of DCA has been screened in accordance with the 
DASSP prior to boarding the aircraft.
    (3) Ensure that all accessible property and property in inaccessible 
cargo holds on an aircraft operating into or out of DCA has been 
screened in accordance with the DASSP prior to boarding the aircraft.
    (4) Ensure that each aircraft operating into or out of DCA has been 
searched in accordance with the DASSP.
    (5) Ensure that each passenger and crewmember on an aircraft 
operating into or out of DCA provides TSA with a valid government-issued 
picture identification in accordance with the DASSP.
    (6) If the aircraft operating into or out of DCA is equipped with a 
cockpit door, ensure that the door is closed and locked at all times 
during the operation of the aircraft to or from DCA, unless Federal 
Aviation Administration regulations require the door to remain open.
    (7) Ensure that each aircraft operating into or out of DCA has 
onboard at least one armed security officer who meets the requirements 
of Sec.  1562.29 of this chapter. This requirement does not apply if--
    (i) There is a Federal Air Marshal onboard; or
    (ii) The aircraft is being flown without passengers into DCA to pick 
up passengers, or out of DCA after deplaning all passengers.
    (8) Ensure that an aircraft operating into or out of DCA has any 
Federal Air

[[Page 415]]

Marshal onboard, at no cost to the Federal Government, if TSA or the 
Federal Air Marshal Service so requires.
    (9) Notify the National Capital Region Coordination Center prior to 
departure of the aircraft from DCA or a gateway airport.
    (10) Ensure that each aircraft operating into or out of DCA operates 
under instrument flight rules.
    (11) Ensure that each passenger complies with any security measures 
mandated by TSA.
    (12) Ensure that no prohibited items are onboard the aircraft.
    (f) Compliance. (1) Each aircraft operator must:
    (i) Permit TSA to conduct any inspections or tests, including 
copying records, to determine compliance with this part and the DASSP.
    (ii) At the request of TSA, provide evidence of compliance with this 
part and the DASSP, including copies of records.
    (2) Noncompliance with this part or the DASSP may result in the 
cancellation of an aircraft operator's flight approvals and other 
remedial or enforcement action, as appropriate.
    (g) Passenger requirements. Each passenger, including each armed 
security officer, who boards or attempts to board an aircraft under this 
section must:
    (1) Provide information to the aircraft operator as provided in this 
section.
    (2) Provide to TSA upon request a valid government-issued photo 
identification.
    (3) Comply with security measures as conveyed by the aircraft 
operator.
    (4) Comply with all applicable regulations in this chapter, 
including Sec.  1540.107 regarding submission to screening and 
inspection, Sec.  1540.109 regarding prohibition against interference 
with screening personnel, and Sec.  1540.111 regarding carriage of 
weapons, explosives, and incendiaries by individuals.



Sec.  1562.25  Fixed base operator requirements.

    (a) Security program. Each FBO must adopt and carry out an FBO 
Security Program.
    (b) Screening and other duties. Each FBO must--
    (1) Designate a security coordinator who meets the requirements in 
Sec.  1562.23(b) of this part and is responsible for implementing the 
FBO Security Program and other security requirements required under this 
section, and provide TSA with the security coordinator's contact 
information and availability in accordance with the FBO Security 
Program.
    (2) Support the screening of persons and property in accordance with 
the requirements of this subpart and the FBO Security Program.
    (3) Support the search of aircraft in accordance with the 
requirements of this subpart and the FBO Security Program.
    (4) Restrict the distribution, disclosure, and availability of 
sensitive security information (SSI), as defined in part 1520 of this 
chapter, to persons with a need to know, and refer all requests for SSI 
by other persons to TSA.
    (5) Perform any other duties required under the FBO Security 
Program.
    (c) Compliance. (1) Each FBO must:
    (i) Permit TSA to conduct any inspections or tests, including 
copying records, to determine compliance with this part and the FBO 
Security Program.
    (ii) At the request of TSA, provide evidence of compliance with this 
part and the FBO Security Program, including copies of records.
    (2) Noncompliance with this part or the FBO Security Program may 
result in the cancellation of an aircraft operator's flight approvals 
and other remedial or enforcement action, as appropriate.



Sec.  1562.27  Costs.

    (a) Each aircraft operator must pay a threat assessment fee of $15 
for each passenger and crewmember whose information the aircraft 
operator submits to TSA in accordance with Sec.  1562.23(d) of this 
part.
    (b) Each aircraft operator must pay to TSA the costs associated with 
carrying out this subpart, as provided in its DASSP.
    (c) All fees and reimbursement must be remitted to TSA in a form and 
manner approved by TSA.

[[Page 416]]

    (d) TSA will not issue any refunds, unless any fees or reimbursement 
funds were paid in error.
    (e) If an aircraft operator does not remit to TSA the fees and 
reimbursement funds required under this section, TSA may decline to 
process any requests for authorization from the aircraft operator.



Sec.  1562.29  Armed security officer requirements.

    (a) General. Unless otherwise authorized by TSA, each armed security 
officer must meet the following requirements:
    (1) Be qualified to carry a firearm in accordance with paragraph (b) 
of this section.
    (2) Successfully complete a TSA security threat assessment as 
described in paragraph (c) of this section.
    (3) Meet such other requirements as TSA, in coordination with the 
Federal Air Marshal Service, may establish in the Armed Security Officer 
Security Program.
    (4) Be authorized by TSA, in coordination with the Federal Air 
Marshal Service, under 49 U.S.C. 44903(d).
    (b) Qualifications. To be qualified to carry a firearm under this 
subpart, an individual must meet the requirements in paragraph (1), (2), 
or (3) of this section, unless otherwise authorized by TSA, in 
coordination with the Federal Air Marshal Service.
    (1) Active law enforcement officers. An active law enforcement 
officer must be an employee of a governmental agency who--
    (i) Is authorized by law to engage in or supervise the prevention, 
detection, investigation, or prosecution of, or the incarceration of any 
person for, any violation of law;
    (ii) Has statutory powers of arrest;
    (iii) Is authorized by the agency to carry a firearm;
    (iv) Is not the subject of any disciplinary action by the agency;
    (v) Is not under the influence of alcohol or another intoxicating or 
hallucinatory drug or substance; and
    (vi) Is not prohibited by Federal law from receiving a firearm.
    (2) Retired law enforcement officers. A retired law enforcement 
officer must be an individual who--
    (i) Retired in good standing from service with a public agency as a 
law enforcement officer, other than for reasons of mental instability;
    (ii) Before such retirement, was authorized by law to engage in or 
supervise the prevention, detection, investigation, or prosecution of, 
or the incarceration of any person for, any violation of law, and had 
statutory powers of arrest;
    (iii) Before such retirement, was regularly employed as a law 
enforcement officer for an aggregate of 15 years or more, or retired 
from service with such agency, after completing any applicable 
probationary period of such service, due to a service-connected 
disability, as determined by such agency;
    (iv) Has a non-forfeitable right to benefits under the retirement 
plan of the agency;
    (v) Is not under the influence of alcohol or another intoxicating or 
hallucinatory drug or substance; and
    (vi) Is not prohibited by Federal law from receiving a firearm.
    (3) Other individuals. Any other individual must--
    (i) Meet qualifications established by TSA, in coordination with the 
Federal Air Marshal Service, in the Armed Security Officer Program;
    (ii) Not be under the influence of alcohol or another intoxicating 
or hallucinatory drug or substance; and
    (iii) Not be prohibited by Federal law from receiving a firearm.
    (c) Threat assessments. To be authorized under this section, each 
armed security officer:
    (1) Must undergo a fingerprint-based criminal history records check 
that does not disclose that he or she has a criminal offense that would 
disqualify him or her from possessing a firearm under 18 U.S.C. 922(g).
    (2) May, if informed that a disqualifying offense has been 
disclosed, correct the record in accordance with the procedures set 
forth in paragraphs (h) and (i) of Sec.  1544.229 of this chapter 
regarding notification and correction of records.
    (3) Must submit to TSA his or her:
    (i) Legal name, including first, middle, and last; any applicable 
suffix, and any other names used.

[[Page 417]]

    (ii) Current mailing address, including residential address if 
different than current mailing address.
    (iii) Date and place of birth.
    (iv) Social security number, (submission is voluntary, although 
recommended).
    (v) Citizenship status and date of naturalization if the individual 
is a naturalized citizen of the United States.
    (vi) Alien registration number, if applicable.
    (4) Must undergo a threat assessment by TSA prior to receiving 
authorization under this section and prior to boarding an aircraft 
operating into or out of DCA as provided in Sec.  1562.23(d)(1) of this 
part.
    (d) Training. Each armed security officer onboard an aircraft 
operating into or out of DCA must:
    (1) Have basic law enforcement training acceptable to TSA; and
    (2) Successfully complete a TSA-approved training course, developed 
in coordination with the Federal Air Marshal Service, at the expense of 
the armed security officer.
    (e) Armed security officer program. (1) Each armed security officer 
onboard an aircraft operating into or out of DCA must--
    (i) Comply with the Armed Security Officer Program.
    (ii) Restrict the distribution, disclosure, and availability of 
sensitive security information (SSI), as defined in part 1520 of this 
chapter, to persons with a need to know, and refer all requests for SSI 
by other persons to TSA.
    (2) TSA and the Federal Air Marshal Service may conduct random 
inspections of armed security officers to ensure compliance with the 
Armed Security Officer Program.
    (f) Authority to carry firearm. An armed security officer approved 
under this section is authorized--
    (1) To carry a firearm in accordance with the Armed Security Officer 
Program on an aircraft operating under a DASSP into or out of DCA; and
    (2) To transport a firearm in accordance with the Armed Security 
Officer Program at any airport as needed to carry out duties under this 
subpart, including for travel to and from flights conducted under this 
subpart.
    (g) Use of force. Each armed security officer authorized to carry a 
firearm under this section may use force, including deadly force, in 
accordance with the Armed Security Officer Program.
    (h) Use of alcohol or intoxicating or hallucinatory drugs or 
substances. An armed security officer onboard an aircraft operating into 
or out of DCA may not consume alcohol or use an intoxicating or 
hallucinatory drug or substance during the flight and within 8 hours 
before boarding the aircraft.
    (i) Credential--(1) TSA credential. An armed security officer under 
this section must carry a credential issued by TSA.
    (2) Inspection of credential. An armed security officer must present 
the TSA-issued credential for inspection when requested by an authorized 
representative of TSA, the Federal Aviation Administration, the Federal 
Air Marshal Service, the National Transportation Safety Board, any 
Federal, State, or local law enforcement officer, or any authorized 
aircraft operator representative.
    (3) Preflight identification to crewmembers. When carrying a 
firearm, an armed security officer must identify himself or herself to 
all crewmembers either personally or through another member of the crew 
before the flight.
    (j) Suspension or withdrawal of authorization. At the discretion of 
TSA, authorization under this subpart and 49 U.S.C. 44903(d) is 
suspended or withdrawn upon notification by TSA.

[[Page 418]]



         SUBCHAPTER D_MARITIME AND LAND TRANSPORTATION SECURITY





PART 1570_GENERAL RULES--Table of Contents



Sec.
1570.1 Scope.
1570.3 Terms used in this subchapter.
1570.5 Fraud and intentional falsification of records.
1570.7 Fraudulent use or manufacture; responsibilities of persons.
1570.9 Inspection of credential.
1570.11 Compliance, inspection, and enforcement.
1570.13 False statements regarding security background checks by public 
          transportation agency or railroad carrier.

    Authority: 46 U.S.C. 70105; 49 U.S.C. 114, 5103a, 40113, and 46105; 
18 U.S.C. 842, 845; 6 U.S.C. 469; Pub. L. 110-53 secs. 1414, 1522.

    Source: 72 FR 3593, Jan. 25, 2007, unless otherwise noted.



Sec.  1570.1  Scope.

    This part applies to any person involved in land or maritime 
transportation as specified in this subchapter.



Sec.  1570.3  Terms used in this subchapter.

    For purposes of this subchapter:
    Adjudicate means to make an administrative determination of whether 
an applicant meets the standards in this subchapter, based on the merits 
of the issues raised.
    Alien means any person not a citizen or national of the United 
States.
    Alien registration number means the number issued by the U.S. 
Department of Homeland Security to an individual when he or she becomes 
a lawful permanent resident of the United States or attains other 
lawful, non-citizen status.
    Applicant means a person who has applied for one of the security 
threat assessments identified in this subchapter.
    Assistant Administrator for Threat Assessment and Credentialing 
(Assistant Administrator) means the officer designated by the Assistant 
Secretary to administer the appeal and waiver programs described in this 
part, except where the Assistant Secretary is specifically designated in 
this part to administer the appeal or waiver program. The Assistant 
Administrator may appoint a designee to assume his or her duties.
    Assistant Secretary means Assistant Secretary for Homeland Security, 
Transportation Security Administration (Assistant Secretary), the 
highest ranking TSA official, or his or her designee, and who is 
responsible for making the final determination on the appeal of an 
intelligence-related check under this part.
    Commercial drivers license (CDL) is used as defined in 49 CFR 383.5.
    Convicted means any plea of guilty or nolo contendere, or any 
finding of guilt, except when the finding of guilt is subsequently 
overturned on appeal, pardoned, or expunged. For purposes of this 
subchapter, a conviction is expunged when the conviction is removed from 
the individual's criminal history record and there are no legal 
disabilities or restrictions associated with the expunged conviction, 
other than the fact that the conviction may be used for sentencing 
purposes for subsequent convictions. In addition, where an individual is 
allowed to withdraw an original plea of guilty or nolo contendere and 
enter a plea of not guilty and the case is subsequently dismissed, the 
individual is no longer considered to have a conviction for purposes of 
this subchapter.
    Determination of No Security Threat means an administrative 
determination by TSA that an individual does not pose a security threat 
warranting denial of an HME or a TWIC.
    Federal Maritime Security Coordinator (FMSC) has the same meaning as 
defined in 46 U.S.C. 70103(a)(2)(G); is the Captain of the Port (COTP) 
exercising authority for the COTP zones described in 33 CFR part 3, and 
is the Port Facility Security Officer as described in the International 
Ship and Port Facility Security (ISPS) Code, part A.
    Final Determination of Threat Assessment means a final 
administrative determination by TSA, including the resolution of related 
appeals, that an individual poses a security threat warranting denial of 
an HME or a TWIC.

[[Page 419]]

    Hazardous materials endorsement (HME) means the authorization for an 
individual to transport hazardous materials in commerce, an indication 
of which must be on the individual's commercial driver's license, as 
provided in the Federal Motor Carrier Safety Administration (FMCSA) 
regulations in 49 CFR part 383.
    Imprisoned or imprisonment means confined to a prison, jail, or 
institution for the criminally insane, on a full-time basis, pursuant to 
a sentence imposed as the result of a criminal conviction or finding of 
not guilty by reason of insanity. Time spent confined or restricted to a 
half-way house, treatment facility, or similar institution, pursuant to 
a sentence imposed as the result of a criminal conviction or finding of 
not guilty by reason of insanity, does not constitute imprisonment for 
purposes of this rule.
    Incarceration means confined or otherwise restricted to a jail-type 
institution, half-way house, treatment facility, or another institution, 
on a full or part-time basis, pursuant to a sentence imposed as the 
result of a criminal conviction or finding of not guilty by reason of 
insanity.
    Initial Determination of Threat Assessment means an initial 
administrative determination by TSA that an applicant poses a security 
threat warranting denial of an HME or a TWIC.
    Initial Determination of Threat Assessment and Immediate Revocation 
means an initial administrative determination that an individual poses a 
security threat that warrants immediate revocation of an HME or 
invalidation of a TWIC. In the case of an HME, the State must 
immediately revoke the HME if TSA issues an Initial Determination of 
Threat Assessment and Immediate Revocation. In the case of a TWIC, TSA 
invalidates the TWIC when TSA issues an Initial Determination of Threat 
Assessment and Immediate Revocation.
    Invalidate means the action TSA takes to make a credential 
inoperative when it is reported as lost, stolen, damaged, no longer 
needed, or when TSA determines an applicant does not meet the security 
threat assessment standards of 49 CFR part 1572.
    Lawful permanent resident means an alien lawfully admitted for 
permanent residence, as defined in 8 U.S.C. 1101(a)(20).
    Maritime facility has the same meaning as ``facility'' together with 
``OCS facility'' (Outer Continental Shelf facility), as defined in 33 
CFR 101.105.
    Mental health facility means a mental institution, mental hospital, 
sanitarium, psychiatric facility, and any other facility that provides 
diagnoses by licensed professionals of mental retardation or mental 
illness, including a psychiatric ward in a general hospital.
    National of the United States means a citizen of the United States, 
or a person who, though not a citizen, owes permanent allegiance to the 
United States, as defined in 8 U.S.C. 1101(a)(22), and includes American 
Samoa and Swains Island.
    Owner/operator with respect to a maritime facility or a vessel has 
the same meaning as defined in 33 CFR 101.105.
    Revocation means the termination, deactivation, rescission, 
invalidation, cancellation, or withdrawal of the privileges and duties 
conferred by an HME or TWIC, when TSA determines an applicant does not 
meet the security threat assessment standards of 49 CFR part 1572.
    Secure area means the area on board a vessel or at a facility or 
outer continental shelf facility, over which the owner/operator has 
implemented security measures for access control, as defined by a Coast 
Guard approved security plan. It does not include passenger access areas 
or public access areas, as those terms are defined in 33 CFR 104.106 and 
105.106 respectively. Vessels operating under the waivers provided for 
at 46 U.S.C. 8103(b)(3)(A) or (B) have no secure areas. Facilities 
subject to 33 CFR chapter I, subchapter H, part 105 may, with approval 
of the Coast Guard, designate only those portions of their facility that 
are directly connected to maritime transportation or are at risk of 
being involved in a transportation security incident as their secure 
areas.
    Security threat means an individual whom TSA determines or suspects 
of posing a threat to national security; to transportation security; or 
of terrorism.
    Sensitive security information (SSI) means information that is 
described in,

[[Page 420]]

and must be managed in accordance with, 49 CFR part 1520.
    State means a State of the United States and the District of 
Columbia.
    Transportation Worker Identification Credential (TWIC) means a 
Federal biometric credential, issued to an individual, when TSA 
determines that the individual does not pose a security threat.
    Withdrawal of Initial Determination of Threat Assessment is the 
document that TSA issues after issuing an Initial Determination of 
Security Threat, when TSA determines that an individual does not pose a 
security threat that warrants denial of an HME or TWIC.

[72 FR 3593, Jan. 25, 2007; 72 FR 14050, Mar. 26, 2007]



Sec.  1570.5  Fraud and intentional falsification of records.

    No person may make, cause to be made, attempt, or cause to attempt 
any of the following:
    (a) Any fraudulent or intentionally false statement in any record or 
report that is kept, made, or used to show compliance with the 
subchapter, or exercise any privileges under this subchapter.
    (b) Any reproduction or alteration, for fraudulent purpose, of any 
record, report, security program, access medium, or identification 
medium issued under this subchapter or pursuant to standards in this 
subchapter.



Sec.  1570.7  Fraudulent use or manufacture; responsibilities of persons.

    (a) No person may use or attempt to use a credential, security 
threat assessment, access control medium, or identification medium 
issued or conducted under this subchapter that was issued or conducted 
for another person.
    (b) No person may make, produce, use or attempt to use a false or 
fraudulently created access control medium, identification medium or 
security threat assessment issued or conducted under this subchapter.
    (c) No person may tamper or interfere with, compromise, modify, 
attempt to circumvent, or circumvent TWIC access control procedures.
    (d) No person may cause or attempt to cause another person to 
violate paragraphs (a)-(c) of this section.



Sec.  1570.9  Inspection of credential.

    (a) Each person who has been issued or possesses a TWIC must present 
the TWIC for inspection upon a request from TSA, the Coast Guard, or 
other authorized DHS representative; an authorized representative of the 
National Transportation Safety Board; or a Federal, State, or local law 
enforcement officer.
    (b) Each person who has been issued or who possesses a TWIC must 
allow his or her TWIC to be read by a reader and must submit his or her 
reference biometric, such as a fingerprint, and any other required 
information, such as a PIN, to the reader, upon a request from TSA, the 
Coast Guard, other authorized DHS representative; or a Federal, State, 
or local law enforcement officer.



Sec.  1570.11  Compliance, inspection, and enforcement.

    (a) Each owner/operator must allow TSA, at any time or place, to 
make any inspections or tests, including copying records, to determine 
compliance of an owner/operator with--
    (1) This subchapter and part 1520 of this chapter; and
    (2) 46 U.S.C. 70105 and 49 U.S.C. 114.
    (b) At the request of TSA, each owner/operator must provide evidence 
of compliance with this subchapter and part 1520 of this chapter, 
including copies of records.



Sec.  1570.13  False statements regarding security background checks by public transportation agency or railroad carrier.

    (a) Scope. This section implements sections 1414(e) (6 U.S.C. 1143) 
and 1522(e) (6 U.S.C. 1170) of the ``Implementing Recommendations of the 
9/11 Commission Act of 2007,'' Pub. L. 110-53.
    (b) Definitions.
    Covered individual means an employee of a public transportation 
agency or a contractor or subcontractor of a public transportation 
agency or an employee of a railroad carrier or a contractor or 
subcontractor of a railroad carrier.
    Public transportation agency means a publicly-owned operator of 
public

[[Page 421]]

transportation eligible to receive Federal assistance under chapter 53 
of title 49, United States Code.
    Railroad has the meaning that term has in section 20102 of title 49, 
United States Code.
    Railroad carrier has the meaning that term has in section 20102 of 
title 49, United States Code.
    Security background check means reviewing the following for the 
purpose of identifying individuals who may pose a threat to 
transportation security, national security, or of terrorism:
    (i) Relevant criminal history databases;
    (ii) In the case of an alien (as defined in sec. 101 of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)(3)), the relevant 
databases to determine the status of the alien under the immigration 
laws of the United States; and
    (iii) Other relevant information or databases, as determined by the 
Secretary of Homeland Security.
    (c) Prohibitions. (1) A public transportation agency or a contractor 
or subcontractor of a public transportation agency may not knowingly 
misrepresent to an employee or other relevant person, including an 
arbiter involved in a labor arbitration, the scope, application, or 
meaning of any rules, regulations, directives, or guidance issued by the 
Secretary of Homeland Security related to security background check 
requirements for covered individuals when conducting a security 
background check.
    (2) A railroad carrier or a contractor or subcontractor of a 
railroad carrier may not knowingly misrepresent to an employee or other 
relevant person, including an arbiter involved in a labor arbitration, 
the scope, application, or meaning of any rules, regulations, 
directives, or guidance issued by the Secretary of Homeland Security 
related to security background check requirements for covered 
individuals when conducting a security background check.

[73 FR 44669, July 31, 2008]



PART 1572_CREDENTIALING AND SECURITY THREAT ASSESSMENTS--Table of Contents



               Subpart A_Procedures and General Standards

Sec.
1572.1 Applicability.
1572.3 Scope.
1572.5 Standards for security threat assessments.
1572.7 [Reserved]
1572.9 Applicant information required for HME security threat 
          assessment.
1572.11 Applicant responsibilities for HME security threat assessment.
1572.13 State responsibilities for issuance of hazardous materials 
          endorsement.
1572.15 Procedures for HME security threat assessment.
1572.17 Applicant information required for TWIC security threat 
          assessment.
1572.19 Applicant responsibilities for a TWIC security threat 
          assessment.
1572.21 Procedures for TWIC security threat assessment.
1572.23 TWIC expiration.
1572.24-1572.40 [Reserved]

    Subpart B_Qualification Standards for Security Threat Assessments

1572.101 Scope.
1572.103 Disqualifying criminal offenses.
1572.105 Immigration status.
1572.107 Other analyses.
1572.109 Mental capacity.
1572.111-1572.139 [Reserved]

Subpart C_Transportation of Hazardous Materials From Canada or Mexico To 
               and Within the United States by Land Modes

1572.201 Transportation of hazardous materials via commercial motor 
          vehicle from Canada or Mexico to and within the United States.
1572.203 Transportation of explosives from Canada to the United States 
          via railroad carrier.

Subpart D [Reserved]

    Subpart E_Fees for Security Threat Assessments for Hazmat Drivers

1572.400 Scope and definitions.
1572.401 Fee collection options.
1572.403 Procedures for collection by States.

[[Page 422]]

1572.405 Procedures for collection by TSA.

Subpart F_Fees for Security Threat Assessments for Transportation Worker 
                    Identification Credential (TWIC)

1572.500 Scope.
1572.501 Fee collection.

    Authority: 46 U.S.C. 70105; 49 U.S.C. 114, 5103a, 40113, and 46105; 
18 U.S.C. 842, 845; 6 U.S.C. 469.

    Source: 72 FR 3595, Jan. 25, 2007, unless otherwise noted.



               Subpart A_Procedures and General Standards



Sec.  1572.1  Applicability.

    This part establishes regulations for credentialing and security 
threat assessments for certain maritime and land transportation workers.



Sec.  1572.3  Scope.

    This part applies to--
    (a) State agencies responsible for issuing a hazardous materials 
endorsement (HME); and
    (b) An applicant who--
    (1) Is qualified to hold a commercial driver's license under 49 CFR 
parts 383 and 384, and is applying to obtain, renew, or transfer an HME; 
or
    (2) Is applying to obtain or renew a TWIC in accordance with 33 CFR 
parts 104 through 106 or 46 CFR part 10; is a commercial driver licensed 
in Canada or Mexico and is applying for a TWIC to transport hazardous 
materials in accordance with 49 CFR 1572.201; or other individuals 
approved by TSA.

[72 FR 3595, Jan. 25, 2007, as amended at 72 FR 55048, Sept. 28, 2007]



Sec.  1572.5  Standards for security threat assessments.

    (a) Standards. TSA determines that an applicant poses a security 
threat warranting denial of an HME or TWIC, if--
    (1) The applicant has a disqualifying criminal offense described in 
49 CFR 1572.103;
    (2) The applicant does not meet the immigration status requirements 
described in 49 CFR 1572.105;
    (3) TSA conducts the analyses described in 49 CFR 1572.107 and 
determines that the applicant poses a security threat; or
    (4) The applicant has been adjudicated as lacking mental capacity or 
committed to a mental health facility, as described in 49 CFR 1572.109.
    (b) Immediate Revocation/Invalidation. TSA may invalidate a TWIC or 
direct a State to revoke an HME immediately, if TSA determines during 
the security threat assessment that an applicant poses an immediate 
threat to transportation security, national security, or of terrorism.
    (c) Violation of FMCSA Standards. The regulations of the Federal 
Motor Carrier Safety Administration (FMCSA) provide that an applicant is 
disqualified from operating a commercial motor vehicle for specified 
periods, if he or she has an offense that is listed in the FMCSA rules 
at 49 CFR 383.51. If records indicate that an applicant has committed an 
offense that would disqualify the applicant from operating a commercial 
motor vehicle under 49 CFR 383.51, TSA will not issue a Determination of 
No Security Threat until the State or the FMCSA determine that the 
applicant is not disqualified under that section.
    (d) Waiver. In accordance with the requirements of Sec.  1515.7, 
applicants may apply for a waiver of certain security threat assessment 
standards.
    (e) Comparability of Other Security Threat Assessment Standards. TSA 
may determine that security threat assessments conducted by other 
governmental agencies are comparable to the threat assessment described 
in this part, which TSA conducts for HME and TWIC applicants.
    (1) In making a comparability determination, TSA will consider--
    (i) The minimum standards used for the security threat assessment;
    (ii) The frequency of the threat assessment;
    (iii) The date of the most recent threat assessment; and
    (iv) Whether the threat assessment includes biometric identification 
and a biometric credential.
    (2) To apply for a comparability determination, the agency seeking 
the determination must contact the Assistant Program Manager, Attn: 
Federal Agency Comparability Check, Hazmat

[[Page 423]]

Threat Assessment Program, Transportation Security Administration, 601 
South 12th Street, Arlington, VA 22202-4220.
    (3) TSA will notify the public when a comparability determination is 
made.
    (4) An applicant, who has completed a security threat assessment 
that is determined to be comparable under this section to the threat 
assessment described in this part, must complete the enrollment process 
and provide biometric information to obtain a TWIC, if the applicant 
seeks unescorted access to a secure area of a vessel or facility. The 
applicant must pay the fee listed in 49 CFR 1572.503 for information 
collection/credential issuance.
    (5) TSA has determined that the security threat assessment for an 
HME under this part is comparable to the security threat assessment for 
TWIC.
    (6) TSA has determined that the security threat assessment for a 
FAST card, under the Free and Secure Trade program administered by U.S. 
Customs and Border Protection, is comparable to the security threat 
assessment described in this part.



Sec.  1572.7  [Reserved]



Sec.  1572.9  Applicant information required for HME security threat assessment.

    An applicant must supply the information required in this section, 
in a form acceptable to TSA, when applying to obtain or renew an HME. 
When applying to transfer an HME from one State to another, 49 CFR 
1572.13(e) applies.
    (a) Except as provided in (a)(12) through (16), the applicant must 
provide the following identifying information:
    (1) Legal name, including first, middle, and last; any applicable 
suffix; and any other name used previously.
    (2) Current and previous mailing address, current residential 
address if it differs from the current mailing address, and e-mail 
address if available. If the applicant prefers to receive correspondence 
and notification via e-mail, the applicant should so state.
    (3) Date of birth.
    (4) Gender.
    (5) Height, weight, hair color, and eye color.
    (6) City, state, and country of birth.
    (7) Immigration status and, if the applicant is a naturalized 
citizen of the United States, the date of naturalization.
    (8) Alien registration number, if applicable.
    (9) The State of application, CDL number, and type of HME(s) held.
    (10) Name, telephone number, facsimile number, and address of the 
applicant's current employer(s), if the applicant's work for the 
employer(s) requires an HME. If the applicant's current employer is the 
U.S. military service, include branch of the service.
    (11) Whether the applicant is applying to obtain, renew, or transfer 
an HME or for a waiver.
    (12) Social security number. Providing the social security number is 
voluntary; however, failure to provide it will delay and may prevent 
completion of the threat assessment.
    (13) Passport number. This information is voluntary and may expedite 
the adjudication process for applicants who are U.S. citizens born 
abroad.
    (14) Department of State Consular Report of Birth Abroad. This 
information is voluntary and may expedite the adjudication process for 
applicants who are U.S. citizens born abroad.
    (15) Whether the applicant has previously completed a TSA threat 
assessment, and if so the date and program for which it was completed. 
This information is voluntary and may expedite the adjudication process 
for applicants who have completed a TSA security threat assessment.
    (16) Whether the applicant currently holds a federal security 
clearance, and if so, the date of and agency for which the clearance was 
performed. This information is voluntary and may expedite the 
adjudication process for applicants who have completed a federal 
security threat assessment.
    (b) The applicant must provide a statement, signature, and date of 
signature that he or she--
    (1) Was not convicted, or found not guilty by reason of insanity, of 
a disqualifying crime listed in 49 CFR 1572.103(b), in a civilian or 
military jurisdiction, during the seven years before the date of the 
application, or is applying for a waiver;

[[Page 424]]

    (2) Was not released from incarceration, in a civilian or military 
jurisdiction, for committing a disqualifying crime listed in 49 CFR 
1572.103(b), during the five years before the date of the application, 
or is applying for a waiver;
    (3) Is not wanted, or under indictment, in a civilian or military 
jurisdiction, for a disqualifying criminal offense identified in 49 CFR 
1572.103, or is applying for a waiver;
    (4) Was not convicted, or found not guilty by reason of insanity, of 
a disqualifying criminal offense identified in 49 CFR 1572.103(a), in a 
civilian or military jurisdiction, or is applying for a waiver;
    (5) Has not been adjudicated as lacking mental capacity or committed 
to a mental health facility involuntarily or is applying for a waiver;
    (6) Meets the immigration status requirements described in 49 CFR 
1572.105;
    (7) Has or has not served in the military, and if so, the branch in 
which he or she served, the date of discharge, and the type of 
discharge; and
    (8) Has been informed that Federal regulations, under 49 CFR 
1572.11, impose a continuing obligation on the HME holder to disclose to 
the State if he or she is convicted, or found not guilty by reason of 
insanity, of a disqualifying crime, adjudicated as lacking mental 
capacity, or committed to a mental health facility.
    (c) The applicant must certify and date receipt the following 
statement:

    Privacy Act Notice: Authority: The authority for collecting this 
information is 49 U.S.C. 114, 40113, and 5103a. Purpose: This 
information is needed to verify your identity and to conduct a security 
threat assessment to evaluate your suitability for a hazardous materials 
endorsement for a commercial driver's license. Furnishing this 
information, including your SSN or alien registration number, is 
voluntary; however, failure to provide it will delay and may prevent 
completion of your security threat assessment. Routine Uses: Routine 
uses of this information include disclosure to the FBI to retrieve your 
criminal history record; to TSA contractors or other agents who are 
providing services relating to the security threat assessments; to 
appropriate governmental agencies for licensing, law enforcement, or 
security purposes, or in the interests of national security; and to 
foreign and international governmental authorities in accordance with 
law and international agreement.

    (d) The applicant must certify and date receipt the following 
statement, immediately before the signature line:

    The information I have provided on this application is true, 
complete, and correct, to the best of my knowledge and belief, and is 
provided in good faith. I understand that a knowing and willful false 
statement, or an omission of a material fact on this application can be 
punished by fine or imprisonment or both (See section 1001 of Title 18 
United States Code), and may be grounds for denial of a hazardous 
materials endorsement.

    (e) The applicant must certify the following statement in writing:

    I acknowledge that if the Transportation Security Administration 
determines that I pose a security threat, my employer, as listed on this 
application, may be notified. If TSA or other law enforcement agency 
becomes aware of an imminent threat to a maritime facility or vessel, 
TSA may provide limited information necessary to reduce the risk of 
injury or damage to the facility or vessel.



Sec.  1572.11  Applicant responsibilities for HME security threat assessment.

    (a) Surrender of HME. If an individual is disqualified from holding 
an HME under 49 CFR 1572.5(c), he or she must surrender the HME to the 
licensing State. Failure to surrender the HME to the State may result in 
immediate revocation under 49 CFR 1572.13(a) and/or civil penalties.
    (b) Continuing responsibilities. An individual who holds an HME must 
surrender the HME as required in paragraph (a) of this section within 24 
hours, if the individual--
    (1) Is convicted of, wanted, under indictment or complaint, or found 
not guilty by reason of insanity, in a civilian or military 
jurisdiction, for a disqualifying criminal offense identified in 49 CFR 
1572.103; or
    (2) Is adjudicated as lacking mental capacity, or committed to a 
mental health facility, as described in 49 CFR 1572.109; or
    (3) Renounces or loses U.S. citizenship or status as a lawful 
permanent resident; or
    (4) Violates his or her immigration status, and/or is ordered 
removed from the United States.

[[Page 425]]

    (c) Submission of fingerprints and information. (1) An HME applicant 
must submit fingerprints and the information required in 49 CFR 1572.9, 
in a form acceptable to TSA, when so notified by the State, or when the 
applicant applies to obtain or renew an HME. The procedures outlined in 
49 CFR 1572.13(e) apply to HME transfers.
    (2) When submitting fingerprints and the information required in 49 
CFR 1572.9, the fee described in 49 CFR 1572.503 must be remitted to 
TSA.



Sec.  1572.13  State responsibilities for issuance of hazardous materials endorsement.

    Each State must revoke an individual's HME immediately, if TSA 
informs the State that the individual does not meet the standards for 
security threat assessment in 49 CFR 1572.5 and issues an Initial 
Determination of Threat Assessment and Immediate Revocation.
    (a) No State may issue or renew an HME for a CDL, unless the State 
receives a Determination of No Security Threat from TSA.
    (b) Each State must notify each individual holding an HME issued by 
that State that he or she will be subject to the security threat 
assessment described in this part as part of an application for renewal 
of the HME, at least 60 days prior to the expiration date of the 
individual's HME. The notice must inform the individual that he or she 
may initiate the security threat assessment required by this section at 
any time after receiving the notice, but no later than 60 days before 
the expiration date of the individual's HME.
    (c) The State that issued an HME may extend the expiration date of 
the HME for 90 days, if TSA has not provided a Determination of No 
Security Threat or a Final Determination of Threat Assessment before the 
expiration date. Any additional extension must be approved in advance by 
TSA.
    (d) Within 15 days of receipt of a Determination of No Security 
Threat or Final Determination of Threat Assessment from TSA, the State 
must--
    (1) Update the applicant's permanent record to reflect:
    (i) The results of the security threat assessment;
    (ii) The issuance or denial of an HME; and
    (iii) The new expiration date of the HME.
    (2) Notify the Commercial Drivers License Information System (CDLIS) 
operator of the results of the security threat assessment.
    (3) Revoke or deny the applicant's HME if TSA serves the State with 
a Final Determination of Threat Assessment.
    (e) For applicants who apply to transfer an existing HME from one 
State to another, the second State will not require the applicant to 
undergo a new security threat assessment until the security threat 
assessment renewal period established in the preceding issuing State, 
not to exceed five years, expires.
    (f) A State that is not using TSA's agent to conduct enrollment for 
the security threat assessment must retain the application and 
information required in 49 CFR 1572.9, for at least one year, in paper 
or electronic form.



Sec.  1572.15  Procedures for HME security threat assessment.

    (a) Contents of security threat assessment. The security threat 
assessment TSA completes includes a fingerprint-based criminal history 
records check (CHRC), an intelligence-related background check, and a 
final disposition.
    (b) Fingerprint-based check. In order to conduct a fingerprint-based 
CHRC, the following procedures must be completed:
    (1) The State notifies the applicant that he or she will be subject 
to the security threat assessment at least 60 days prior to the 
expiration of the applicant's HME, and that the applicant must begin the 
security threat assessment no later than 30 days before the date of the 
expiration of the HME.
    (2) Where the State elects to collect fingerprints and applicant 
information, the State--
    (i) Collects fingerprints and applicant information required in 49 
CFR 1572.9;
    (ii) Provides the applicant information to TSA electronically, 
unless otherwise authorized by TSA;
    (iii) Transmits the fingerprints to the FBI/Criminal Justice 
Information Services (CJIS), in accordance with the

[[Page 426]]

FBI/CJIS fingerprint submission standards; and
    (iv) Retains the signed application, in paper or electronic form, 
for one year and provides it to TSA, if requested.
    (3) Where the State elects to have a TSA agent collect fingerprints 
and applicant information--
    (i) TSA provides a copy of the signed application to the State;
    (ii) The State retains the signed application, in paper or 
electronic form, for one year and provides it to TSA, if requested; and
    (iii) TSA transmits the fingerprints to the FBI/CJIS, in accordance 
with the FBI/CJIS fingerprint submission standards.
    (4) TSA receives the results from the FBI/CJIS and adjudicates the 
results of the check, in accordance with 49 CFR 1572.103 and, if 
applicable, 49 CFR 1572.107.
    (c) Intelligence-related check. To conduct an intelligence-related 
check, TSA completes the following procedures:
    (1) Reviews the applicant information required in 49 CFR 1572.9.
    (2) Searches domestic and international Government databases 
described in 49 CFR 1572.105, 1572.107, and 1572.109.
    (3) Adjudicates the results of the check in accordance with 49 CFR 
1572.103, 1572.105, 1572.107, and 1572.109.
    (d) Final disposition. Following completion of the procedures 
described in paragraphs (b) and/or (c) of this section, the following 
procedures apply, as appropriate:
    (1) TSA serves a Determination of No Security Threat on the State in 
which the applicant is authorized to hold an HME, if TSA determines that 
an applicant meets the security threat assessment standards described in 
49 CFR 1572.5.
    (2) TSA serves an Initial Determination of Threat Assessment on the 
applicant, if TSA determines that the applicant does not meet the 
security threat assessment standards described in 49 CFR 1572.5. The 
Initial Determination of Threat Assessment includes--
    (i) A statement that TSA has determined that the applicant poses a 
security threat warranting denial of the HME;
    (ii) The basis for the determination;
    (iii) Information about how the applicant may appeal the 
determination, as described in 49 CFR 1515.5 or 1515.9, as applicable; 
and
    (iv) A statement that if the applicant chooses not to appeal TSA's 
determination within 60 days of receipt of the Initial Determination, or 
does not request an extension of time within 60 days of receipt of the 
Initial Determination in order to file an appeal, the Initial 
Determination becomes a Final Determination of Security Threat 
Assessment.
    (3) TSA serves an Initial Determination of Threat Assessment and 
Immediate Revocation on the applicant, the applicant's employer where 
appropriate, and the State, if TSA determines that the applicant does 
not meet the security threat assessment standards described in 49 CFR 
1572.5 and may pose an imminent threat to transportation or national 
security, or of terrorism. The Initial Determination of Threat 
Assessment and Immediate Revocation includes--
    (i) A statement that TSA has determined that the applicant poses a 
security threat warranting immediate revocation of an HME;
    (ii) The basis for the determination;
    (iii) Information about how the applicant may appeal the 
determination, as described in 49 CFR 1515.5(h) or 1515.9(f), as 
applicable; and
    (iv) A statement that if the applicant chooses not to appeal TSA's 
determination within 60 days of receipt of the Initial Determination and 
Immediate Revocation, the Initial Determination and Immediate Revocation 
becomes a Final Determination of Threat Assessment.
    (4) If the applicant does not appeal the Initial Determination of 
Threat Assessment or Initial Determination of Threat Assessment and 
Immediate Revocation, TSA serves a Final Determination of Threat 
Assessment on the State in which the applicant applied for the HME, the 
applicant's employer where appropriate, and on the applicant, if the 
appeal of the Initial Determination results in a finding that the 
applicant poses a security threat.
    (5) If the applicant appeals the Initial Determination of Threat 
Assessment

[[Page 427]]

or the Initial Determination of Threat Assessment and Immediate 
Revocation, the procedures in 49 CFR 1515.5 or 1515.9 apply.
    (6) Applicants who do not meet certain standards in 49 CFR 1572.103, 
1572.105, or 1572.109 may seek a waiver in accordance with 49 CFR 
1515.7.



Sec.  1572.17  Applicant information required for TWIC security threat assessment.

    An applicant must supply the information required in this section, 
in a form acceptable to TSA, when applying to obtain or renew a TWIC.
    (a) Except as provided in (a)(12) through (16), the applicant must 
provide the following identifying information:
    (1) Legal name, including first, middle, and last; any applicable 
suffix; and any other name used previously.
    (2) Current and previous mailing address, current residential 
address if it differs from the current mailing address, and e-mail 
address if available. If the applicant wishes to receive notification 
that the TWIC is ready to be retrieved from the enrollment center via 
telephone rather than e-mail address, the applicant should state this 
and provide the correct telephone number.
    (3) Date of birth.
    (4) Gender.
    (5) Height, weight, hair color, and eye color.
    (6) City, state, and country of birth.
    (7) Immigration status, and
    (i) If the applicant is a naturalized citizen of the United States, 
the date of naturalization;
    (ii) If the applicant is present in the United States based on a 
Visa, the type of Visa, the Visa number, and the date on which it 
expires; and
    (iii) If the applicant is a commercial driver licensed in Canada and 
does not hold a FAST card, a Canadian passport.
    (8) If not a national or citizen of the United States, the alien 
registration number and/or the number assigned to the applicant on the 
U.S. Customs and Border Protection Arrival-Departure Record, Form I-94.
    (9) Except as described in paragraph (a)(9)(i) of this section, the 
reason that the applicant requires a TWIC, including, as applicable, the 
applicant's job description and the primary facility, vessel, or 
maritime port location(s) where the applicant will most likely require 
unescorted access, if known. This statement does not limit access to 
other facilities, vessels, or ports, but establishes eligibility for a 
TWIC.
    (i) Applicants who are commercial drivers licensed in Canada or 
Mexico who are applying for a TWIC in order to transport hazardous 
materials in accordance with 49 CFR 1572.201 and not to access secure 
areas of a facility or vessel, must explain this in response to the 
information requested in paragraph (a)(9) of this section.
    (10) The name, telephone number, and address of the applicant's 
current employer(s), if working for the employer requires a TWIC. If the 
applicant's current employer is the U.S. military service, include the 
branch of the service. An applicant whose current employer does not 
require possession of a TWIC, does not have a single employer, or is 
self-employed, must provide the primary vessel or port location(s) where 
the applicant requires unescorted access, if known. This statement does 
not limit access to other facilities, vessels, or ports, but establishes 
eligibility for a TWIC.
    (11) If a credentialed mariner or applying to become a credentialed 
mariner, proof of citizenship as required in 46 CFR chapter I, 
subchapter B.
    (12) Social security number. Providing the social security number is 
voluntary; however, failure to provide it will delay and may prevent 
completion of the threat assessment.
    (13) Passport number, city of issuance, date of issuance, and date 
of expiration. This information is voluntary and may expedite the 
adjudication process for applicants who are U.S. citizens born abroad.
    (14) Department of State Consular Report of Birth Abroad. This 
information is voluntary and may expedite the adjudication process for 
applicants who are U.S. citizens born abroad.
    (15) Whether the applicant has previously completed a TSA threat 
assessment, and if so the date and program for which it was completed. 
This information is voluntary and may expedite the adjudication process 
for applicants

[[Page 428]]

who have completed a TSA security threat assessment.
    (16) Whether the applicant currently holds a federal security 
clearance, and if so, the date of and agency for which the clearance was 
performed. This information is voluntary and may expedite the 
adjudication process for applicants who have completed a federal 
security threat assessment.
    (b) The applicant must provide a statement, signature, and date of 
signature that he or she--
    (1) Was not convicted, or found not guilty by reason of insanity, of 
a disqualifying crime listed in 49 CFR 1572.103(b), in a civilian or 
military jurisdiction, during the seven years before the date of the 
application, or is applying for a waiver;
    (2) Was not released from incarceration, in a civilian or military 
jurisdiction, for committing a disqualifying crime listed in 49 CFR 
1572.103(b), during the five years before the date of the application, 
or is applying for a waiver;
    (3) Is not wanted, or under indictment, in a civilian or military 
jurisdiction, for a disqualifying criminal offense identified in 49 CFR 
1572.103, or is applying for a waiver;
    (4) Was not convicted, or found not guilty by reason of insanity, of 
a disqualifying criminal offense identified in 49 CFR 1572.103(a), in a 
civilian or military jurisdiction, or is applying for a waiver;
    (5) Has not been adjudicated as lacking mental capacity, or 
committed to a mental health facility involuntarily, or is applying for 
a waiver;
    (6) Meets the immigration status requirements described in 49 CFR 
1572.105;
    (7) Has, or has not, served in the military, and if so, the branch 
in which he or she served, the date of discharge, and the type of 
discharge; and
    (8) Has been informed that Federal regulations under 49 CFR 1572.19 
impose a continuing obligation on the TWIC holder to disclose to TSA if 
he or she is convicted, or found not guilty by reason of insanity, of a 
disqualifying crime, adjudicated as lacking mental capacity, or 
committed to a mental health facility.
    (c) Applicants, applying to obtain or renew a TWIC, must submit 
biometric information to be used for identity verification purposes. If 
an individual cannot provide the selected biometric, TSA will collect an 
alternative biometric identifier.
    (d) The applicant must certify and date receipt the following 
statement:

    Privacy Act Notice: Authority: The authority for collecting this 
information is 49 U.S.C. 114, 40113, and 5103a. Purpose: This 
information is needed to verify your identity and to conduct a security 
threat assessment to evaluate your suitability for a Transportation 
Worker Identification Credential. Furnishing this information, including 
your SSN or alien registration number, is voluntary; however, failure to 
provide it will delay and may prevent completion of your security threat 
assessment. Routine Uses: Routine uses of this information include 
disclosure to the FBI to retrieve your criminal history record; to TSA 
contractors or other agents who are providing services relating to the 
security threat assessments; to appropriate governmental agencies for 
licensing, law enforcement, or security purposes, or in the interests of 
national security; and to foreign and international governmental 
authorities in accordance with law and international agreement.

    (e) The applicant must certify the following statement in writing:

    As part of my employment duties, I am required to have unescorted 
access to secure areas of maritime facilities or vessels in which a 
Transportation Worker Identification Credential is required; I am now, 
or I am applying to be, a credentialed merchant mariner; or I am a 
commercial driver licensed in Canada or Mexico transporting hazardous 
materials in accordance with 49 CFR 1572.201.

    (f) The applicant must certify and date receipt the following 
statement, immediately before the signature line:

    The information I have provided on this application is true, 
complete, and correct, to the best of my knowledge and belief, and is 
provided in good faith. I understand that a knowing and willful false 
statement, or an omission of a material fact on this application, can be 
punished by fine or imprisonment or both (see section 1001 of Title 18 
United States Code), and may be grounds for denial of a Transportation 
Worker Identification Credential.

    (g) The applicant must certify the following statement in writing:

    I acknowledge that if the Transportation Security Administration 
determines that I

[[Page 429]]

pose a security threat, my employer, as listed on this application, may 
be notified. If TSA or other law enforcement agency becomes aware of an 
imminent threat to a maritime facility or vessel, TSA may provide 
limited information necessary to reduce the risk of injury or damage to 
the facility or vessel.



Sec.  1572.19  Applicant responsibilities for a TWIC security threat assessment.

    (a) Implementation schedule. Except as provided in paragraph (b) of 
this section, applicants must provide the information required in 49 CFR 
1572.17, when so directed by the owner/operator.
    (b) Implementation schedule for certain mariners. An applicant, who 
holds a Merchant Mariner Document (MMD) issued after February 3, 2003, 
and before April 15, 2009, or a Merchant Marine License (License) issued 
after January 13, 2006, and before April 15, 2009, must submit the 
information required in this section, but is not required to undergo the 
security threat assessment described in this part.
    (c) Surrender of TWIC. The TWIC is property of the Transportation 
Security Administration. If an individual is disqualified from holding a 
TWIC under 49 CFR 1572.5, he or she must surrender the TWIC to TSA. 
Failure to surrender the TWIC to TSA may result in immediate revocation 
under 49 CFR 1572.5(b) and/or civil penalties.
    (d) Continuing responsibilities. An individual who holds a TWIC must 
surrender the TWIC, as required in paragraph (a) of this section, within 
24 hours if the individual--
    (1) Is convicted of, wanted, under indictment or complaint, or found 
not guilty by reason of insanity, in a civilian or military 
jurisdiction, for a disqualifying criminal offense identified in 49 CFR 
1572.103; or
    (2) Is adjudicated as lacking mental capacity or committed to a 
mental health facility, as described in 49 CFR 1572.109; or
    (3) Renounces or loses U.S. citizenship or status as a lawful 
permanent resident; or
    (4) Violates his or her immigration status and/or is ordered removed 
from the United States.
    (e) Submission of fingerprints and information. (1) TWIC applicants 
must submit fingerprints and the information required in 49 CFR 1572.17, 
in a form acceptable to TSA, to obtain or renew a TWIC.
    (2) When submitting fingerprints and the information required in 49 
CFR 1572.17, the fee required in 49 CFR 1572.503 must be remitted to 
TSA.
    (f) Lost, damaged, or stolen credentials. If an individual's TWIC is 
damaged, or if a TWIC holder loses possession of his or her credential, 
he or she must notify TSA immediately.

[72 FR 3595, Jan. 25, 2007, as amended at 72 FR 55048, Sept. 28, 2007; 
73 FR 25566, May 7, 2008]



Sec.  1572.21  Procedures for TWIC security threat assessment.

    (a) Contents of security threat assessment. The security threat 
assessment TSA conducts includes a fingerprint-based criminal history 
records check (CHRC), an intelligence-related check, and a final 
disposition.
    (b) Fingerprint-based check. The following procedures must be 
completed to conduct a fingerprint-based CHRC:
    (1) Consistent with the implementation schedule described in 49 CFR 
1572.19(a) and (b), and as required in 33 CFR 104.200, 105.200, or 
106.200, applicants are notified.
    (2) During enrollment, TSA--
    (i) Collects fingerprints, applicant information, and the fee 
required in 49 CFR 1572.17;
    (ii) Transmits the fingerprints to the FBI/CJIS in accordance with 
the FBI/CJIS fingerprint submission standards.
    (iii) Receives and adjudicates the results of the check from FBI/
CJIS, in accordance with 49 CFR 1572.103 and, if applicable, 49 CFR 
1572.107.
    (c) Intelligence-related check. To conduct an intelligence-related 
check, TSA completes the following procedures:
    (1) Reviews the applicant information required in 49 CFR 1572.17;
    (2) Searches domestic and international Government databases 
required to determine if the applicant meets the requirements of 49 CFR 
1572.105, 1572.107, and 1572.109;
    (3) Adjudicates the results of the check in accordance with 49 CFR 
1572.103, 1572.105, 1572.107, and 1572.109.
    (d) Final disposition. Following completion of the procedures 
described in

[[Page 430]]

paragraphs (b) and/or (c) of this section, the following procedures 
apply, as appropriate:
    (1) TSA serves a Determination of No Security Threat on the 
applicant if TSA determines that the applicant meets the security threat 
assessment standards described in 49 CFR 1572.5. In the case of a 
mariner, TSA also serves a Determination of No Security Threat on the 
Coast Guard.
    (2) TSA serves an Initial Determination of Threat Assessment on the 
applicant if TSA determines that the applicant does not meet the 
security threat assessment standards described in 49 CFR 1572.5. The 
Initial Determination of Threat Assessment includes--
    (i) A statement that TSA has determined that the applicant poses a 
security threat warranting denial of the TWIC;
    (ii) The basis for the determination;
    (iii) Information about how the applicant may appeal the 
determination, as described in 49 CFR 1515.5 or 1515.9, as applicable; 
and
    (iv) A statement that if the applicant chooses not to appeal TSA's 
determination within 60 days of receipt of the Initial Determination, or 
does not request an extension of time within 60 days of receipt of the 
Initial Determination in order to file an appeal, the Initial 
Determination becomes a Final Determination of Security Threat 
Assessment.
    (3) TSA serves an Initial Determination of Threat Assessment and 
Immediate Revocation on the applicant, the applicant's employer where 
appropriate, the FMSC, and in the case of a mariner applying for a TWIC, 
on the Coast Guard, if TSA determines that the applicant does not meet 
the security threat assessment standards described in 49 CFR 1572.5 and 
may pose an imminent security threat. The Initial Determination of 
Threat Assessment and Immediate Revocation includes--
    (i) A statement that TSA has determined that the applicant poses a 
security threat warranting immediate revocation of a TWIC and unescorted 
access to secure areas;
    (ii) The basis for the determination;
    (iii) Information about how the applicant may appeal the 
determination, as described in 49 CFR 1515.5(h) or 1515.9(f), as 
applicable; and
    (iv) A statement that if the applicant chooses not to appeal TSA's 
determination within 60 days of receipt of the Initial Determination and 
Immediate Revocation, the Initial Determination and Immediate Revocation 
becomes a Final Determination of Threat Assessment.
    (4) If the applicant does not appeal the Initial Determination of 
Threat Assessment or Initial Determination of Threat Assessment and 
Immediate Revocation, TSA serves a Final Determination of Threat 
Assessment on the FMSC and in the case of a mariner, on the Coast Guard, 
and the applicant's employer where appropriate.
    (5) If the applicant appeals the Initial Determination of Threat 
Assessment or the Initial Determination of Threat Assessment and 
Immediate Revocation, the procedures in 49 CFR 1515.5 or 1515.9 apply.
    (6) Applicants who do not meet certain standards in 49 CFR 1572.103, 
1572.105, or 1572.109 may seek a waiver in accordance with 49 CFR 
1515.7.



Sec.  1572.23  TWIC expiration.

    (a) A TWIC expires five years after the date it was issued at the 
end of the calendar day, except as follows:
    (1) The TWIC was issued based on a determination that the applicant 
completed a comparable threat assessment. If issued pursuant to a 
comparable threat assessment, the TWIC expires five years from the date 
on the credential associated with the comparable threat assessment.
    (2) The applicant is in a lawful nonimmigrant status category listed 
in 1572.105(a)(7), and the status expires, the employer terminates the 
employment relationship with the applicant, or the applicant otherwise 
ceases working for the employer. Under any of these circumstances, TSA 
deems the TWIC to have expired regardless of the expiration date on the 
face of the TWIC.
    (b) TSA may issue a TWIC for a term less than five years to match 
the expiration of a visa.

[[Page 431]]



Sec. Sec.  1572.24--1572.40  [Reserved]



           Subpart B_Standards for Security Threat Assessments



Sec.  1572.101  Scope.

    This subpart applies to applicants who hold or are applying to 
obtain or renew an HME or TWIC, or transfer an HME. Applicants for an 
HME also are subject to safety requirements issued by the Federal Motor 
Carrier Safety Administration under 49 CFR part 383 and by the State 
issuing the HME, including additional immigration status and criminal 
history standards.



Sec.  1572.103  Disqualifying criminal offenses.

    (a) Permanent disqualifying criminal offenses. An applicant has a 
permanent disqualifying offense if convicted, or found not guilty by 
reason of insanity, in a civilian or military jurisdiction of any of the 
following felonies:
    (1) Espionage or conspiracy to commit espionage.
    (2) Sedition, or conspiracy to commit sedition.
    (3) Treason, or conspiracy to commit treason.
    (4) A federal crime of terrorism as defined in 18 U.S.C. 2332b(g), 
or comparable State law, or conspiracy to commit such crime.
    (5) A crime involving a transportation security incident. A 
transportation security incident is a security incident resulting in a 
significant loss of life, environmental damage, transportation system 
disruption, or economic disruption in a particular area, as defined in 
46 U.S.C. 70101. The term ``economic disruption'' does not include a 
work stoppage or other employee-related action not related to terrorism 
and resulting from an employer-employee dispute.
    (6) Improper transportation of a hazardous material under 49 U.S.C. 
5124, or a State law that is comparable.
    (7) Unlawful possession, use, sale, distribution, manufacture, 
purchase, receipt, transfer, shipping, transporting, import, export, 
storage of, or dealing in an explosive or explosive device. An explosive 
or explosive device includes, but is not limited to, an explosive or 
explosive material as defined in 18 U.S.C. 232(5), 841(c) through 
841(f), and 844(j); and a destructive device, as defined in 18 U.S.C. 
921(a)(4) and 26 U.S.C. 5845(f).
    (8) Murder.
    (9) Making any threat, or maliciously conveying false information 
knowing the same to be false, concerning the deliverance, placement, or 
detonation of an explosive or other lethal device in or against a place 
of public use, a state or government facility, a public transportations 
system, or an infrastructure facility.
    (10) Violations of the Racketeer Influenced and Corrupt 
Organizations Act, 18 U.S.C. 1961, et seq., or a comparable State law, 
where one of the predicate acts found by a jury or admitted by the 
defendant, consists of one of the crimes listed in paragraph (a) of this 
section.
    (11) Attempt to commit the crimes in paragraphs (a)(1) through 
(a)(4).
    (12) Conspiracy or attempt to commit the crimes in paragraphs (a)(5) 
through (a)(10).
    (b) Interim disqualifying criminal offenses. (1) The felonies listed 
in paragraphs (b)(2) of this section are disqualifying, if either:
    (i) the applicant was convicted, or found not guilty by reason of 
insanity, of the crime in a civilian or military jurisdiction, within 
seven years of the date of the application; or
    (ii) the applicant was incarcerated for that crime and released from 
incarceration within five years of the date of the TWIC application.
    (2) The interim disqualifying felonies are:
    (i) Unlawful possession, use, sale, manufacture, purchase, 
distribution, receipt, transfer, shipping, transporting, delivery, 
import, export of, or dealing in a firearm or other weapon. A firearm or 
other weapon includes, but is not limited to, firearms as defined in 18 
U.S.C. 921(a)(3) or 26 U.S.C. 5 845(a), or items contained on the U.S. 
Munitions Import List at 27 CFR 447.21.
    (ii) Extortion.
    (iii) Dishonesty, fraud, or misrepresentation, including identity 
fraud and money laundering where the money laundering is related to a 
crime described in paragraphs (a) or (b) of this section. Welfare fraud 
and passing bad

[[Page 432]]

checks do not constitute dishonesty, fraud, or misrepresentation for 
purposes of this paragraph.
    (iv) Bribery.
    (v) Smuggling.
    (vi) Immigration violations.
    (vii) Distribution of, possession with intent to distribute, or 
importation of a controlled substance.
    (viii) Arson.
    (ix) Kidnapping or hostage taking.
    (x) Rape or aggravated sexual abuse.
    (xi) Assault with intent to kill.
    (xii) Robbery.
    (xiii) Fraudulent entry into a seaport as described in 18 U.S.C. 
1036, or a comparable State law.
    (xiv) Violations of the Racketeer Influenced and Corrupt 
Organizations Act, 18 U.S.C. 1961, et seq., or a comparable State law, 
other than the violations listed in paragraph (a)(10) of this section.
    (xv) Conspiracy or attempt to commit the crimes in this paragraph 
(b).
    (c) Under want, warrant, or indictment. An applicant who is wanted, 
or under indictment in any civilian or military jurisdiction for a 
felony listed in this section, is disqualified until the want or warrant 
is released or the indictment is dismissed.
    (d) Determination of arrest status. (1) When a fingerprint-based 
check discloses an arrest for a disqualifying crime listed in this 
section without indicating a disposition, TSA will so notify the 
applicant and provide instructions on how the applicant must clear the 
disposition, in accordance with paragraph (d)(2) of this section.
    (2) The applicant must provide TSA with written proof that the 
arrest did not result in conviction for the disqualifying criminal 
offense, within 60 days after the service date of the notification in 
paragraph (d)(1) of this section. If TSA does not receive proof in that 
time, TSA will notify the applicant that he or she is disqualified. In 
the case of an HME, TSA will notify the State that the applicant is 
disqualified, and in the case of a mariner applying for TWIC, TSA will 
notify the Coast Guard that the applicant is disqualified.

[72 FR 3595, Jan. 25, 2007; 72 FR 5633, Feb. 7, 2007; 72 FR 14050, Mar. 
26, 2007]



Sec.  1572.105  Immigration status.

    (a) An individual applying for a security threat assessment for a 
TWIC or HME must be a national of the United States or--
    (1) A lawful permanent resident of the United States;
    (2) A refugee admitted under 8 U.S.C. 1157;
    (3) An alien granted asylum under 8 U.S.C. 1158;
    (4) An alien in valid M-1 nonimmigrant status who is enrolled in the 
United States Merchant Marine Academy or a comparable State maritime 
academy. Such individuals may serve as unlicensed mariners on a 
documented vessel, regardless of their nationality, under 46 U.S.C. 
8103.
    (5) A nonimmigrant alien admitted under the Compact of Free 
Association between the United States and the Federated States of 
Micronesia, the United States and the Republic of the Marshall Islands, 
or the United States and Palau.
    (6) An alien in lawful nonimmigrant status who has unrestricted 
authorization to work in the United States, except--
    (i) An alien in valid S-5 (informant of criminal organization 
information) lawful nonimmigrant status;
    (ii) An alien in valid S-6 (informant of terrorism information) 
lawful nonimmigrant status;
    (iii) An alien in valid K-1 (Fianco(e)) lawful nonimmigrant status; 
or
    (iv) An alien in valid K-2 (Minor child of Fianco(e)) lawful 
nonimmigrant status.
    (7) An alien in the following lawful nonimmigrant status who has 
restricted authorization to work in the United States--
    (i) B1/OCS Business Visitor/Outer Continental Shelf;
    (ii) C-1/D Crewman Visa;
    (iii) H-1B Special Occupations;
    (iv) H-1B1 Free Trade Agreement;
    (v) E-1 Treaty Trader;
    (vi) E-3 Australian in Specialty Occupation;
    (vii) L-1 Intracompany Executive Transfer;
    (viii) O-1 Extraordinary Ability;
    (ix) TN North American Free Trade Agreement;
    (x) E-2 Treaty Investor; or

[[Page 433]]

    (xi) Another authorization that confers legal status, when TSA 
determines that the legal status is comparable to the legal status set 
out in paragraph (a)(7) of this section.
    (8) A commercial driver licensed in Canada or Mexico who is admitted 
to the United States under 8 CFR 214.2(b)(4)(i)(E) to conduct business 
in the United States.
    (b) Upon expiration of a nonimmigrant status listed in paragraph 
(a)(7) of this section, an employer must retrieve the TWIC from the 
applicant and provide it to TSA.
    (c) Upon expiration of a nonimmigrant status listed in paragraph 
(a)(7) of this section, an employee must surrender his or her TWIC to 
the employer.
    (d) If an employer terminates an applicant working under a 
nonimmigrant status listed in paragraph (a)(7) of this section, or the 
applicant otherwise ceases working for the employer, the employer must 
notify TSA within 5 business days and provide the TWIC to TSA if 
possible.
    (e) Any individual in removal proceedings or subject to an order of 
removal under the immigration laws of the United States is not eligible 
to apply for a TWIC.
    (f) To determine an applicant's immigration status, TSA will check 
relevant Federal databases and may perform other checks, including the 
validity of the applicant's alien registration number, social security 
number, or I-94 Arrival-Departure Form number.

[72 FR 3595, Jan. 25, 2007, as amended at 72 FR 55049, Sept. 28, 2007; 
73 FR 13156, Mar. 12, 2008]



Sec.  1572.107  Other analyses.

    (a) TSA may determine that an applicant poses a security threat 
based on a search of the following databases:
    (1) Interpol and other international databases, as appropriate.
    (2) Terrorist watchlists and related databases.
    (3) Any other databases relevant to determining whether an applicant 
poses, or is suspected of posing, a security threat, or that confirm an 
applicant's identity.
    (b) TSA may also determine that an applicant poses a security 
threat, if the search conducted under this part reveals extensive 
foreign or domestic criminal convictions, a conviction for a serious 
crime not listed in 49 CFR 1572.103, or a period of foreign or domestic 
imprisonment that exceeds 365 consecutive days.



Sec.  1572.109  Mental capacity.

    (a) An applicant has mental incapacity, if he or she has been--
    (1) Adjudicated as lacking mental capacity; or
    (2) Committed to a mental health facility.
    (b) An applicant is adjudicated as lacking mental capacity if--
    (1) A court, board, commission, or other lawful authority has 
determined that the applicant, as a result of marked subnormal 
intelligence, mental illness, incompetence, condition, or disease, is a 
danger to himself or herself or to others, or lacks the mental capacity 
to conduct or manage his or her own affairs.
    (2) This includes a finding of insanity by a court in a criminal 
case and a finding of incompetence to stand trial; or a finding of not 
guilty by reason of lack of mental responsibility, by any court, or 
pursuant to articles 50a and 76b of the Uniform Code of Military Justice 
(10 U.S.C. 850a and 876b).
    (c) An applicant is committed to a mental health facility if he or 
she is formally committed to a mental health facility by a court, board, 
commission, or other lawful authority, including involuntary commitment 
and commitment for lacking mental capacity, mental illness, and drug 
use. This does not include commitment to a mental health facility for 
observation or voluntary admission to a mental health facility.

[[Page 434]]



Sec. Sec.  1572.111-1572.139  [Reserved]



Subpart C_Transportation of Hazardous Materials From Canada or Mexico To 
               and Within the United States by Land Modes



Sec.  1572.201  Transportation of hazardous materials via commercial motor vehicle from Canada or Mexico to and within the United States.

    (a) Applicability. This section applies to commercial motor vehicle 
drivers licensed by Canada and Mexico.
    (b) Terms used in this section. The terms used in 49 CFR parts 1500, 
1570, and 1572 also apply in this subpart. In addition, the following 
terms are used in this subpart for purposes of this section:
    FAST means Free and Secure Trade program of the Bureau of Customs 
and Border Protection (CBP), a cooperative effort between CBP and the 
governments of Canada and Mexico to coordinate processes for the 
clearance of commercial shipments at the border.
    Hazardous materials means material that has been designated as 
hazardous under 49 U.S.C. 5103 and is required to be placarded under 
subpart F of 49 CFR part 172 or any quantity of material that listed as 
a select agent or toxin in 42 CFR part 73.
    (c) Background check required. A commercial motor vehicle driver who 
is licensed by Canada or Mexico may not transport hazardous materials 
into or within the United States unless the driver has undergone a 
background check similar to the one required of U.S.-licensed operators 
with a hazardous materials endorsement (HME) on a commercial driver's 
license, as prescribed in 49 CFR 1572.5.
    (d) FAST card. A commercial motor vehicle driver who holds a current 
Free and Secure Trade (FAST) program card satisfies the requirements of 
this section. Commercial motor vehicle drivers who wish to apply for a 
FAST program card must contact the FAST Commercial Driver Program, 
Bureau of Customs and Border Protection (CBP), Department of Homeland 
Security.
    (e) TWIC. A commercial motor vehicle driver who holds a TWIC 
satisfies the requirements of this section. Commercial vehicle drivers 
who wish to apply for a TWIC must comply with the rules in 49 CFR part 
1572.



Sec.  1572.203  Transportation of explosives from Canada to the United States via railroad carrier.

    (a) Applicability. This section applies to railroad carriers that 
carry explosives from Canada to the United States, using a train crew 
member who is not a U.S. citizen or lawful permanent resident alien of 
the United States.
    (b) Terms under this section. For purposes of this section:
    Customs and Border Protection (CBP) means the Bureau of Customs and 
Border Protection, an agency within the U.S. Department of Homeland 
Security.
    Explosive means a material that has been examined by the Associate 
Administrator for Hazardous Materials Safety, Research and Special 
Programs Administration, in accordance with 49 CFR 173.56, and 
determined to meet the definition for a Class 1 material in 49 CFR 
173.50.
    Known railroad carrier means a person that has been determined by 
the Governments of Canada and the United States to be a legitimate 
business, operating in accordance with all applicable laws and 
regulations governing the transportation of explosives.
    Known offeror means an offeror that has been determined by the 
Governments of Canada and the United States to be a legitimate business, 
operating in accordance with all applicable laws and regulations 
governing the transportation of explosives.
    Known train crew member means an individual used to transport 
explosives from Canada to the United States, who has been determined by 
the Governments of Canada and the United States to present no known 
security concern.
    Lawful permanent resident alien means an alien lawfully admitted for 
permanent residence, as defined by 8 U.S.C. 1101(a)(20).
    Offeror means the person offering a shipment to the railroad carrier 
for transportation from Canada to the United States, and may also be 
known as the ``consignor'' in Canada.

[[Page 435]]

    Railroad carrier means ``railroad carrier'' as defined in 49 U.S.C. 
20102.
    (c) Prior approval of railroad carrier, offeror, and train crew 
member. (1) No railroad carrier may transport in commerce any explosive 
into the United States from Canada, via a train operated by a crew 
member who is not a U.S. national or lawful permanent resident alien, 
unless the railroad carrier, offeror, and train crew member are 
identified on a TSA list as a known railroad carrier, known offeror, and 
known train crew member, respectively.
    (2) The railroad carrier must ensure that it, its offeror, and each 
of its crew members have been determined to be a known railroad carrier, 
known offeror, and known train crew member, respectively. If any has not 
been so determined, the railroad carrier must submit the following 
information to Transport Canada:
    (i) The railroad carrier's identification, including--
    (A) Official name;
    (B) Business number;
    (C) Any trade names; and
    (D) Address.
    (ii) The following information about any offeror of explosives whose 
shipments it will carry:
    (A) Official name.
    (B) Business number.
    (C) Address.
    (iii) The following information about any train crew member the 
railroad carrier may use to transport explosives into the United States 
from Canada, who is neither a U.S. national nor lawful permanent 
resident alien:
    (A) Full name.
    (B) Both current and most recent prior residential addresses.
    (3) Transport Canada will determine whether the railroad carrier and 
offeror are legitimately doing business in Canada and will also 
determine whether the train crew members present no known problems for 
purposes of this section. Transport Canada will notify TSA of these 
determinations by forwarding to TSA lists of known railroad carriers, 
offerors, and train crew members and their identifying information.
    (4) TSA will update and maintain the list of known railroad 
carriers, offerors, and train crew members and forward the list to CBP.
    (5) Once included on the list, the railroad carriers, offerors, and 
train crew members need not obtain prior approval for future transport 
of explosives under this section.
    (d) TSA checks. TSA may periodically check the data on the railroad 
carriers, offerors, and train crew members to confirm their continued 
eligibility, and may remove from the list any that TSA determines is not 
known or is a threat to security.
    (e) At the border. (1) Train crew members who are not U.S. nationals 
or lawful permanent resident aliens. Upon arrival at a point designated 
by CBP for inspection of trains crossing into the United States, the 
train crew members of a train transporting explosives must provide 
sufficient identification to CBP to enable that agency to determine if 
each crew member is on the list of known train crew members maintained 
by TSA.
    (2) Train crew members who are U.S. nationals or lawful permanent 
resident aliens. If CBP cannot verify that the crew member is on the 
list and the crew member is a U.S. national or lawful permanent resident 
alien, the crew member may be cleared by CBP upon providing--
    (i) A valid U.S. passport; or
    (ii) One or more other document(s), including a form of U.S. Federal 
or state Government-issued identification with photograph, acceptable to 
CBP.
    (3) Compliance. If a carrier attempts to enter the U.S. without 
having complied with this section, CBP will deny entry of the explosives 
and may take other appropriate action.

Subpart D [Reserved]



    Subpart E_Fees for Security Threat Assessments for Hazmat Drivers



Sec.  1572.400  Scope and definitions.

    (a) Scope. This part applies to--
    (1) States that issue an HME for a commercial driver's license;
    (2) Individuals who apply to obtain or renew an HME for a commercial 
driver's license and must undergo a security threat assessment under 49 
CFR part 1572; and

[[Page 436]]

    (3) Entities who collect fees from such individuals on behalf of 
TSA.
    (b) Terms. As used in this part:
    Commercial driver's license (CDL) is used as defined in 49 CFR 
383.5.
    Day means calendar day.
    FBI Fee means the fee required for the cost of the Federal Bureau of 
Investigation (FBI) to process fingerprint records.
    Information Collection Fee means the fee required, in this part, for 
the cost of collecting and transmitting fingerprints and other applicant 
information under 49 CFR part 1572.
    Threat Assessment Fee means the fee required, in this part, for the 
cost of TSA adjudicating security threat assessments, appeals, and 
waivers under 49 CFR part 1572.
    TSA agent means an entity approved by TSA to collect and transmit 
fingerprints and applicant information, in accordance with 49 CFR part 
1572, and fees in accordance with this part.



Sec.  1572.401  Fee collection options.

    (a) State collection and transmission. If a State collects 
fingerprints and applicant information under 49 CFR part 1572, the State 
must collect and transmit to TSA the Threat Assessment Fee, in 
accordance with the requirements of 49 CFR 1572.403. The State also must 
collect and remit the FBI fee, in accordance with established 
procedures.
    (b) TSA agent collection and transmission. If a TSA agent collects 
fingerprints and applicant information under 49 CFR part 1572, the agent 
must--
    (1) Collect the Information Collection Fee, Threat Assessment Fee, 
and FBI Fee, in accordance with procedures approved by TSA;
    (2) Transmit to TSA the Threat Assessment Fee, in accordance with 
procedures approved by TSA; and
    (3) Transmit to TSA the FBI Fee, in accordance with procedures 
approved by TSA and the FBI.

[72 FR 3595, Jan. 25, 2007; 72 FR 14050, Mar. 26, 2007]



Sec.  1572.403  Procedures for collection by States.

    This section describes the procedures that a State, which collects 
fingerprints and applicant information under 49 CFR part 1572; and the 
procedures an individual who applies to obtain or renew an HME, for a 
CDL in that State, must follow for collection and transmission of the 
Threat Assessment Fee and the FBI Fee.
    (a) Imposition of fees. (1) The following Threat Assessment Fee is 
required for TSA to conduct a security threat assessment, under 49 CFR 
part 1572, for an individual who applies to obtain or renew an HME: $34.
    (2) The following FBI Fee is required for the FBI to process 
fingerprint identification records and name checks required under 49 CFR 
part 1572: the fee collected by the FBI under Pub. L. 101-515.
    (3) An individual who applies to obtain or renew an HME, or the 
individual's employer, must remit to the State the Threat Assessment Fee 
and the FBI Fee, in a form and manner approved by TSA and the State, 
when the individual submits the application for the HME to the State.
    (b) Collection of fees. (1) A State must collect the Threat 
Assessment Fee and FBI Fee, when an individual submits an application to 
the State to obtain or renew an HME.
    (2) Once TSA receives an application from a State for a security 
threat assessment under 49 CFR part 1572, the State is liable for the 
Threat Assessment Fee.
    (3) Nothing in this subpart prevents a State from collecting any 
other fees that a State may impose on an individual who applies to 
obtain or renew an HME.
    (c) Handling of fees. (1) A State must safeguard all Threat 
Assessment Fees, from the time of collection until remittance to TSA.
    (2) All Threat Assessment Fees are held in trust by a State for the 
beneficial interest of the United States in paying for the costs of 
conducting the security threat assessment, required by 49 U.S.C. 5103a 
and 49 CFR part 1572. A State holds neither legal nor equitable interest 
in the Threat Assessment Fees, except for the right to retain any 
accrued interest on the principal amounts collected pursuant to this 
section.
    (3) A State must account for Threat Assessment Fees separately, but 
may

[[Page 437]]

commingle such fees with other sources of revenue.
    (d) Remittance of fees. (1) TSA will generate and provide an invoice 
to a State on a monthly basis. The invoice will indicate the total fee 
dollars (number of applicants times the Threat Assessment Fee) that are 
due for the month.
    (2) A State must remit to TSA full payment for the invoice, within 
30 days after TSA sends the invoice.
    (3) TSA accepts Threat Assessment Fees only from a State, not from 
an individual applicant for an HME.
    (4) A State may retain any interest that accrues on the principal 
amounts collected between the date of collection and the date the Threat 
Assessment Fee is remitted to TSA, in accordance with paragraph (d)(2) 
of this section.
    (5) A State may not retain any portion of the Threat Assessment Fee 
to offset the costs of collecting, handling, or remitting Threat 
Assessment Fees.
    (6) Threat Assessment Fees, remitted to TSA by a State, must be in 
U.S. currency, drawn on a U.S. bank, and made payable to the 
``Transportation Security Administration.''
    (7) Threat Assessment Fees must be remitted by check, money order, 
wire, or any other payment method acceptable to TSA.
    (8) TSA will not issue any refunds of Threat Assessment Fees.
    (9) If a State does not remit the Threat Assessment Fees for any 
month, TSA may decline to process any HME applications from that State.



Sec.  1572.405  Procedures for collection by TSA.

    This section describes the procedures that an individual, who 
applies to obtain or renew an HME for a CDL, must follow if a TSA agent 
collects and transmits the Information Collection Fee, Threat Assessment 
Fee, and FBI Fee.
    (a) Imposition of fees. (1) The following Information Collection Fee 
is required for a TSA agent to collect and transmit fingerprints and 
applicant information, in accordance with 49 CFR part 1572: $38.
    (2) The following Threat Assessment Fee is required for TSA to 
conduct a security threat assessment, under 49 CFR part 1572, for an 
individual who applies to obtain or renew an HME: $34.
    (3) The following FBI Fee is required for the FBI to process 
fingerprint identification records required under 49 CFR part 1572: The 
fee collected by the FBI under Pub. L. 101-515.
    (4) An individual who applies to obtain or renew an HME, or the 
individual's employer, must remit to the TSA agent the Information 
Collection Fee, Threat Assessment Fee, and FBI Fee, in a form and manner 
approved by TSA, when the individual submits the application required 
under 49 CFR part 1572.
    (b) Collection of fees. A TSA agent will collect the fees required 
under this section, when an individual submits an application to the TSA 
agent, in accordance with 49 CFR part 1572.
    (c) Remittance of fees. (1) Fees required under this section, which 
are remitted to a TSA agent, must be made in U.S. currency, drawn on a 
U.S. bank, and made payable to the ``Transportation Security 
Administration.''
    (2) Fees required under this section must be remitted by check, 
money order, wire, or any other payment method acceptable to TSA.
    (3) TSA will not issue any refunds of fees required under this 
section.
    (4) Applications, submitted in accordance with 49 CFR part 1572, 
will be processed only upon receipt of all applicable fees under this 
section.



Subpart F_Fees for Security Threat Assessments for Transportation Worker 
                    Identification Credential (TWIC)



Sec.  1572.500  Scope.

    (a) Scope. This part applies to--
    (1) Individuals who apply to obtain or renew a Transportation Worker 
Identification Credential and must undergo a security threat assessment 
under 49 CFR part 1572; and
    (2) Entities that collect fees from such individuals on behalf of 
TSA.
    (b) Terms. As used in this part:
    TSA agent means the entity approved by TSA to collect and transmit 
fingerprints and applicant information, and collect fees in accordance 
with this part.

[[Page 438]]



Sec.  1572.501  Fee collection.

    (a) When fee must be paid. When an applicant submits the information 
and fingerprints required under 49 CFR part 1572 to obtain or renew a 
TWIC, the fee must be remitted to TSA or its agent in accordance with 
the requirements of this section. Applications submitted in accordance 
with 49 CFR part 1572 will be processed only upon receipt of all 
required fees under this section.
    (b) Standard TWIC Fee. The fee to obtain or renew a TWIC, except as 
provided in paragraphs (c) and (d) of this section, is made up of the 
total of the following segments:
    (1) The Enrollment Segment covers the cost for TSA or its agent to 
enroll applicants. The Enrollment Segment fee is $43.25.
    (2) The Full Card Production/Security Threat Assessment Segment 
covers the costs for TSA conduct security threat assessment and card 
production. The Full Card Production/Security Threat Assessment Segment 
fee is $72.
    (3) The FBI Segment covers the cost for the FBI to process 
fingerprint identification records. The FBI Segment fee is the amount 
collected by the FBI under Pub. L. 101-515. If the FBI amends this fee, 
TSA or its agent will collect the amended fee.
    (c) Reduced TWIC Fee. The fee to obtain a TWIC when the applicant 
has undergone a comparable threat assessment in connection with an HME, 
FAST card, other threat assessment deemed to be comparable under 49 CFR 
1572.5(e) or holds a Merchant Mariner Document or Merchant Mariner 
License is made up of the total of the following segments:
    (1) The Enrollment Segment covers the cost for TSA or its agent to 
enroll applicants. The Enrollment Segment fee is $43.25.
    (2) The Reduced Card Production/Security Threat Assessment Segment 
covers the cost for TSA to conduct a portion of the security threat 
assessment and card production. The Reduced Card Production/Security 
Threat Assessment Segment fee is $62.
    (d) Card Replacement Fee. The fee to replace a TWIC that has been 
lost, stolen, or damaged is $60.00.
    (e) Form of fee. The TSA vendor will collect the fee required to 
obtain or renew a TWIC and will determine the method of acceptable 
payment, subject to approval by TSA.
    (f) Refunds. TSA will not issue any refunds of fees required under 
this section.
    (g) Inflation adjustment. The fees prescribed in this section, 
except the FBI fee, may be adjusted annually on or after October 1, 
2007, by publication of an inflation adjustment. A final rule in the 
Federal Register will announce the inflation adjustment. The adjustment 
shall be a composite of the Federal civilian pay raise assumption and 
non-pay inflation factor for that fiscal year issued by the Office of 
Management and Budget for agency use in implementing OMB Circular A-76, 
weighted by the pay and non-pay proportions of total funding for that 
fiscal year. If Congress enacts a different Federal civilian pay raise 
percentage than the percentage issued by OMB for Circular A-76, the 
Department of Homeland Security may adjust the fees to reflect the 
enacted level. The required fee shall be the amount prescribed in 
paragraphs (a)(1)(i) and (a)(1)(ii), plus the latest inflation 
adjustment.

[72 FR 3595, Jan. 25, 2007, as amended at 72 FR 55049, Sept. 28, 2007]



PART 1580_RAIL TRANSPORTATION SECURITY--Table of Contents



                            Subpart A_General

Sec.
1580.1 Scope.
1580.3 Terms used in this part.
1580.5 Inspection authority.

    Subpart B_Freight Rail Including Freight Railroad Carriers, Rail 
 Hazardous Materials Shippers, Rail Hazardous Materials Receivers, and 
                              Private Cars

1580.100 Applicability.
1580.101 Rail security coordinator.
1580.103 Location and shipping information for certain rail cars.
1580.105 Reporting significant security concerns.
1580.107 Chain of custody and control requirements.
1580.109 Preemptive effect.

[[Page 439]]

1580.111 Harmonization of federal regulation of nuclear facilities.

  Subpart C_Passenger Rail Including Passenger Railroad Carriers, Rail 
Transit Systems, Tourist, Scenic, Historic and Excursion Operators, and 
                              Private Cars

1580.200 Applicability.
1580.201 Rail security coordinator.
1580.203 Reporting significant security concerns.

Appendix A to Part 1580--High Threat Urban Areas (HTUAs).
Appendix B to Part 1580--Summary of the Applicability of Part 1580

    Authority: 49 U.S.C. 114.

    Source: 73 FR 72173, Nov. 26, 2008, unless otherwise noted.



                            Subpart A_General



Sec.  1580.1  Scope.

    (a) Except as provided in paragraph (b) of this section, this part 
includes requirements for the following persons. Appendix B of this part 
summarizes the general requirements for each person, and the specific 
sections in this part provide detailed requirements.
    (1) Each freight railroad carrier that operates rolling equipment on 
track that is part of the general railroad system of transportation;
    (2) Each rail hazardous materials shipper that offers, prepares, or 
loads for transportation in commerce by rail one or more of the 
categories and quantities of rail security-sensitive materials set forth 
in Sec.  1580.100(b) of this part;
    (3) Each rail hazardous materials receiver, located within a High 
Threat Urban Area (HTUA) that receives in commerce by rail or unloads 
one or more of the categories and quantities of rail security-sensitive 
materials set forth in Sec.  1580.100(b) of this part;
    (4) Each passenger railroad carrier, including each carrier 
operating light rail or heavy rail transit service on track that is part 
of the general railroad system of transportation, each carrier operating 
or providing intercity passenger train service or commuter or other 
short-haul railroad passenger service in a metropolitan or suburban area 
(as described by 49 U.S.C. 20102), and each public authority operating 
passenger train service;
    (5) Each passenger or freight railroad carrier hosting an operation 
described in paragraph (a)(4) of this section;
    (6) Each tourist, scenic, historic, and excursion rail operator, 
whether operating on or off the general railroad system of 
transportation;
    (7) Each operator of private cars, including business/office cars 
and circus trains, on or connected to the general railroad system of 
transportation; and
    (8) Each operator of a rail transit system that is not operating on 
track that is part of the general railroad system of transportation, 
including heavy rail transit, light rail transit, automated guideway, 
cable car, inclined plane, funicular, and monorail systems.
    (b) This part does not apply to a freight railroad carrier that 
operates rolling equipment only on track inside an installation that is 
not part of the general railroad system of transportation.



Sec.  1580.3  Terms used in this part.

    For purposes of this part:
    Commuter passenger train service means ``train, commuter'' as 
defined in 49 CFR 238.5, and includes a railroad operation that 
ordinarily uses diesel or electric powered locomotives and railroad 
passenger cars to serve an urban area, its suburbs, and more distant 
outlying communities in the greater metropolitan area. A commuter 
operation is part of the general railroad system of transportation 
regardless of whether it is physically connected to other railroads.
    General railroad system of transportation means the network of 
standard gage track over which goods may be transported throughout the 
Nation and passengers may travel between cities and within metropolitan 
and suburban areas. See 49 CFR part 209, Appendix A.
    Hazardous material means ``hazardous material'' as defined in 49 CFR 
171.8.
    Heavy rail transit means service provided by self-propelled electric 
railcars, typically drawing power from a third rail, operating in 
separate rights-of-way in multiple cars; also referred to as subways, 
metros, or regional rail.
    High Threat Urban Area (HTUA) means an area comprising one or more 
cities and surrounding areas including

[[Page 440]]

a 10-mile buffer zone, as listed in appendix A to this part.
    Improvised explosive device means a device fabricated in an 
improvised manner that incorporates explosives or destructive, lethal, 
noxious, pyrotechnic, or incendiary chemicals in its design, and 
generally includes a power supply, a switch or timer, and a detonator or 
initiator.
    Intercity passenger train service means both ``train, long-distance 
intercity passenger'' and ``train, short-distance intercity passenger'' 
as defined in 49 CFR 238.5.
    Light rail transit means service provided by self-propelled electric 
railcars, typically drawing power from an overhead wire, operating in 
either exclusive or non-exclusive rights-of-way in single or multiple 
cars and with shorter distance trips and frequent stops; also referred 
to as streetcars, trolleys, and trams.
    Offers or offeror means:
    (1) Any person who does either or both of the following:
    (i) Performs, or is responsible for performing, any pre-
transportation function for transportation of the hazardous material in 
commerce.
    (ii) Tenders or makes the hazardous material available to a carrier 
for transportation in commerce.
    (2) A carrier is not an offeror when it performs a function required 
as a condition of acceptance of a hazardous material for transportation 
in commerce (such as reviewing shipping papers, examining packages to 
ensure that they are in conformance with the HMR, or preparing shipping 
documentation for its own use) or when it transfers a hazardous material 
to another carrier for continued transportation in commerce without 
performing a pre-transportation function. See 49 CFR 171.8.
    Passenger car means rail rolling equipment intended to provide 
transportation for members of the general public and includes a self-
propelled car designed to carry passengers, baggage, mail, or express. 
This term includes a passenger coach, cab car, and a Multiple Unit (MU) 
locomotive. In the context of articulated equipment, ``passenger car'' 
means that segment of the rail rolling equipment located between two 
trucks. This term does not include a private car. See 49 CFR 238.5.
    Passenger train means a train that transports or is available to 
transport members of the general public. See 49 CFR 238.5.
    Private car means rail rolling equipment that is used only for 
excursion, recreational, or private transportation purposes. A private 
car is not a passenger car. See 49 CFR 238.5.
    Rail facility means a location at which rail cargo or infrastructure 
assets are stored, cargo is transferred between conveyances and/or modes 
of transportation, where transportation command and control operations 
are performed, or maintenance operations are performed. The term also 
includes, but is not limited to, passenger stations and terminals, rail 
yards, crew management centers, dispatching centers, transportation 
terminals and stations, fueling centers, and telecommunication centers.
    Rail hazardous materials receiver means any operator of a fixed-site 
facility that has a physical connection to the general railroad system 
of transportation and receives or unloads from transportation in 
commerce by rail one or more of the categories and quantities of rail 
security-sensitive materials set forth in Sec.  1580.100(b) of this 
part, but does not include the operator of a facility owned or operated 
by a department, agency, or instrumentality of the Federal government.
    Rail hazardous materials shipper means the operator of any fixed-
site facility that has a physical connection to the general railroad 
system of transportation and offers, prepares, or loads for 
transportation by rail one or more of the categories and quantities of 
rail security-sensitive materials set forth in Sec.  1580.100(b) of this 
part, but does not include the operator of a facility owned or operated 
by a department, agency, or instrumentality of the Federal government.
    Rail secure area means a secure location(s) identified by a rail 
hazardous materials shipper or rail hazardous materials receiver where 
security-related pre-transportation or transportation functions are 
performed or rail cars

[[Page 441]]

containing the categories and quantities of rail security-sensitive 
materials are prepared, loaded, stored, and/or unloaded.
    Rail security-sensitive material means one or more of the categories 
and quantities of hazardous materials set forth in Sec.  1580.100(b) of 
this part.
    Rail transit facility means rail transit stations, terminals, and 
locations at which rail transit infrastructure assets are stored, 
command and control operations are performed, or maintenance is 
performed. The term also includes rail yards, crew management centers, 
dispatching centers, transportation terminals and stations, fueling 
centers, and telecommunication centers.
    Rail transit system or ``Rail Fixed Guideway System'' means any 
light, heavy, or rapid rail system, monorail, inclined plane, funicular, 
cable car, trolley, or automated guideway that traditionally does not 
operate on track that is part of the general railroad system of 
transportation.
    Railroad means any form of nonhighway ground transportation that 
runs on rails or electromagnetic guideways, including: Commuter or other 
short-haul railroad passenger service in a metropolitan or suburban area 
and commuter railroad service that was operated by the Consolidated Rail 
Corporation on January 1, 1979; and high speed ground transportation 
systems that connect metropolitan areas, without regard to whether those 
systems use new technologies not associated with traditional railroads; 
but does not include rapid transit operations in an urban area that are 
not connected to the general railroad system of transportation. The term 
includes rail transit service operating on track that is part of the 
general railroad system of transportation but does not include rapid 
transit operations in an urban area that are not connected to the 
general railroad system of transportation. See 49 U.S.C. 20102(1).
    Railroad carrier means a person providing railroad transportation. 
See 49 U.S.C. 20102(2).
    Residue means the hazardous material remaining in a packaging, 
including a tank car, after its contents have been unloaded to the 
maximum extent practicable and before the packaging is either refilled 
or cleaned of hazardous material and purged to remove any hazardous 
vapors. See 49 CFR 171.8.
    Tourist, scenic, historic, or excursion operation means a railroad 
operation that carries passengers, often using antiquated equipment, 
with the conveyance of the passengers to a particular destination not 
being the principal purpose. Train movements of new passenger equipment 
for demonstration purposes are not tourist, scenic, historic, or 
excursion operations. See 49 CFR 238.5.
    Transit means mass transportation by a conveyance that provides 
regular and continuing general or special transportation to the public, 
but does not include school bus, charter, or sightseeing transportation. 
See 49 U.S.C 5302(a). Transit may occur on or off the general railroad 
system of transportation. For purposes of this part, the term 
``transit'' excludes buses and commuter passenger train service.
    Transportation or transport means the movement of property including 
loading, unloading, and storage. Transportation or transport also 
includes the movement of people, boarding, and disembarking incident to 
that movement.



Sec.  1580.5  Inspection authority.

    (a) This section applies to the following:
    (1) Each freight railroad carrier that operates rolling equipment on 
track that is part of the general railroad system of transportation.
    (2) Each rail hazardous materials shipper.
    (3) Each rail hazardous materials receiver located within an HTUA.
    (4) Each passenger railroad carrier, including each carrier 
operating light rail or heavy rail transit service on track that is part 
of the general railroad system of transportation, each carrier operating 
or providing intercity passenger train service or commuter or other 
short-haul railroad passenger service in a metropolitan or suburban area 
(as described by 49 U.S.C. 20102), and each public authority operating 
passenger train service.
    (5) Each passenger or freight railroad carrier hosting an operation 
described in paragraph (a)(4) of this section.

[[Page 442]]

    (6) Each tourist, scenic, historic, and excursion rail operator, 
whether operating on or off the general railroad system of 
transportation.
    (7) Each operator of private cars, including business/office cars 
and circus trains, on or connected to the general railroad system of 
transportation.
    (8) Each operator of a rail transit system that is not operating on 
track that is part of the general railroad system of transportation, 
including heavy rail transit, light rail transit, automated guideway, 
cable car, inclined plane, funicular, and monorail systems.
    (b) The persons described in paragraph (a) of this section must 
allow TSA and other authorized DHS officials, at any time and in a 
reasonable manner, without advance notice, to enter, inspect, and test 
property, facilities, equipment, and operations; and to view, inspect, 
and copy records, as necessary to carry out TSA's security-related 
statutory or regulatory authorities, including its authority to--
    (1) Assess threats to transportation;
    (2) Enforce security-related regulations, directives, and 
requirements;
    (3) Inspect, maintain, and test the security of facilities, 
equipment, and systems;
    (4) Ensure the adequacy of security measures for the transportation 
of passengers and freight, including hazardous materials;
    (5) Oversee the implementation, and ensure the adequacy, of security 
measures at rail yards, stations, terminals, transportation-related 
areas of rail hazardous materials shipper and receiver facilities, crew 
management centers, dispatch centers, telecommunication centers, and 
other transportation facilities and infrastructure;
    (6) Review security plans; and
    (7) Carry out such other duties, and exercise such other powers, 
relating to transportation security, as the Assistant Secretary of 
Homeland Security for the TSA considers appropriate, to the extent 
authorized by law.
    (c) TSA and DHS officials working with TSA, may enter, without 
advance notice, and be present within any area or within any conveyance 
without access media or identification media issued or approved by a 
railroad carrier, rail transit system owner or operator, rail hazardous 
materials shipper, or rail hazardous materials receiver in order to 
inspect or test compliance, or perform other such duties as TSA may 
direct.
    (d) TSA inspectors and DHS officials working with TSA will, on 
request, present their credentials for examination, but the credentials 
may not be photocopied or otherwise reproduced.



    Subpart B_Freight Rail Including Freight Railroad Carriers, Rail 
 Hazardous Materials Shippers, Rail Hazardous Materials Receivers, and 
                              Private Cars



Sec.  1580.100  Applicability.

    (a) Applicability. The requirements of this subpart apply to:
    (1) Each freight railroad carrier that operates rolling equipment on 
track that is part of the general railroad system of transportation.
    (2) Each rail hazardous materials shipper.
    (3) Each rail hazardous materials receiver located with an HTUA.
    (4) Each freight railroad carrier hosting a passenger operation 
described in Sec.  1580.1(a)(4) of this part.
    (5) Each operator of private cars, including business/office cars 
and circus trains, on or connected to the general railroad system of 
transportation.
    (b) Rail security-sensitive materials. The requirements of this 
subpart apply to:
    (1) A rail car containing more than 2,268 kg (5,000 lbs) of a 
Division 1.1, 1.2, or 1.3 (explosive) material, as defined in 49 CFR 
173.50;
    (2) A tank car containing a material poisonous by inhalation as 
defined in 49 CFR 171.8, including anhydrous ammonia, Division 2.3 gases 
poisonous by inhalation as set forth in 49 CFR 173.115(c), and Division 
6.1 liquids meeting the defining criteria in 49 CFR 173.132(a)(1)(iii) 
and assigned to hazard zone A or hazard zone B in accordance with 49 CFR 
173.133(a), excluding residue quantities of these materials; and
    (3) A rail car containing a highway route-controlled quantity of a 
Class 7

[[Page 443]]

(radioactive) material, as defined in 49 CFR 173.403.

[73 FR 72173, Nov. 26, 2008, as amended at 74 FR 23656, May 20, 2009]



Sec.  1580.101  Rail security coordinator.

    (a) Applicability. This section applies to:
    (1) Each freight railroad carrier that operates rolling equipment on 
track that is part of the general railroad system of transportation.
    (2) Each rail hazardous materials shipper.
    (3) Each rail hazardous materials receiver located with an HTUA.
    (4) Each freight railroad carrier hosting the passenger operations 
described in Sec.  1580.1(a)(4) of this part.
    (5) Each operator of private cars, including business/office cars 
and circus trains, on or connected to the general railroad system of 
transportation, when notified by TSA in writing, that a threat exists 
concerning that operation.
    (b) Each person described in paragraph (a) of this section must 
designate and use a primary and at least one alternate Rail Security 
Coordinator (RSC).
    (c) The RSC and alternate(s) must be appointed at the corporate 
level.
    (d) Each freight railroad carrier, rail hazardous materials shipper, 
and rail hazardous materials receiver required to have an RSC must 
provide to TSA the names, title, phone number(s), and e-mail address(es) 
of the RSCs and alternate RSCs, and must notify TSA within 7 calendar 
days when any of this information changes.
    (e) Each freight railroad carrier, rail hazardous materials shipper, 
and rail hazardous materials receiver required to have an RSC must 
ensure that at least one RSC:
    (1) Serves as the primary contact for intelligence information and 
security-related activities and communications with TSA. Any individual 
designated as an RSC may perform other duties in addition to those 
described in this section;
    (2) Is available to TSA on a 24-hours a day, 7 days a week basis; 
and
    (3) Coordinates security practices and procedures with appropriate 
law enforcement and emergency response agencies.

[73 FR 72173, Nov. 26, 2008, as amended at 74 FR 23656, May 20, 2009]



Sec.  1580.103  Location and shipping information for certain rail cars.

    (a) Applicability. This section applies to:
    (1) Each freight railroad carrier transporting one or more of the 
categories and quantities of rail security-sensitive materials.
    (2) Each rail hazardous materials shipper.
    (3) Each rail hazardous materials receiver located with an HTUA.
    (b) General requirement. Each person described in paragraph (a) of 
this section must have procedures in place to determine the location and 
shipping information for each rail car under its physical custody and 
control that contains one or more of the categories and quantities of 
rail security-sensitive materials.
    (c) Required information. The location and shipping information 
required in paragraph (b) of this section must include the following:
    (1) The rail car's current location by city, county, and state, 
including, for freight railroad carriers, the railroad milepost, track 
designation, and the time that the rail car's location was determined.
    (2) The rail car's routing, if a freight railroad carrier.
    (3) A list of the total number of rail cars containing the materials 
listed in Sec.  1580.100(b) of this part, broken down by:
    (i) The shipping name prescribed for the material in column 2 of the 
table in 49 CFR 172.101;
    (ii) The hazard class or division number prescribed for the material 
in column 3 of the table in 49 CFR 172.101; and
    (iii) The identification number prescribed for the material in 
column 4 of the table in 49 CFR 172.101.
    (4) Each rail car's initial and number.
    (5) Whether the rail car is in a train, rail yard, siding, rail 
spur, or rail hazardous materials shipper or receiver facility, 
including the name of the rail yard or siding designation.

[[Page 444]]

    (d) Timing-class I freight railroad carriers. Upon request by TSA, 
each Class I freight railroad carrier described in paragraph (a) of this 
section must provide the location and shipping information to TSA no 
later than:
    (1) Five minutes if the request concerns only one rail car; and
    (2) Thirty minutes if the request concerns two or more rail cars.
    (e) Timing-other than class I freight railroad carriers. Upon 
request by TSA, all persons described in paragraph (a) of this section, 
other than Class I freight railroad carriers, must provide the location 
and shipping information to TSA no later than 30 minutes, regardless of 
the number of cars covered by the request.
    (f) Method. All persons described in paragraph (a) of this section 
must provide the requested location and shipping information to TSA by 
one of the following methods:
    (1) Electronic data transmission in spreadsheet format.
    (2) Electronic data transmission in Hyper Text Markup Language 
(HTML) format.
    (3) Electronic data transmission in Extensible Markup Language 
(XML).
    (4) Facsimile transmission of a hard copy spreadsheet in tabular 
format.
    (5) Posting the information to a secure website address approved by 
TSA.
    (6) Another format approved by TSA.
    (g) Telephone number. Each person described in paragraph (a) of this 
section must provide a telephone number for use by TSA to request the 
information required in paragraph (c) of this section.
    (1) The telephone number must be monitored at all times.
    (2) A telephone number that requires a call back (such as an 
answering service, answering machine, or beeper device) does not meet 
the requirements of this paragraph.
    (h) Definition. As used in this section, Class I has the meaning 
assigned by regulations of the Surface Transportation Board (STB) (49 
CFR part 1201; General Instructions 1-1).

[73 FR 72173, Nov. 26, 2008, as amended at 74 FR 23657, May 20, 2009]



Sec.  1580.105  Reporting significant security concerns.

    (a) Applicability. This section applies to:
    (1) Each freight railroad carrier that operates rolling equipment on 
track that is part of the general railroad system of transportation.
    (2) Each rail hazardous materials shipper.
    (3) Each rail hazardous materials receiver located with an HTUA.
    (4) Each freight railroad carrier hosting a passenger operation 
described in Sec.  1580.1(a)(4) of this part.
    (5) Each operator of private cars, including business/office cars 
and circus, on or connected to the general railroad system of 
transportation.
    (b) Each person described in paragraph (a) of this section must 
immediately report potential threats and significant security concerns 
to DHS by telephoning the Freedom Center at 1-866-615-5150.
    (c) Potential threats or significant security concerns encompass 
incidents, suspicious activities, and threat information including, but 
not limited to, the following:
    (1) Interference with the train crew.
    (2) Bomb threats, specific and non-specific.
    (3) Reports or discovery of suspicious items that result in the 
disruption of railroad operations.
    (4) Suspicious activity occurring onboard a train or inside the 
facility of a freight railroad carrier, rail hazardous materials 
shipper, or rail hazardous materials receiver that results in a 
disruption of operations.
    (5) Suspicious activity observed at or around rail cars, facilities, 
or infrastructure used in the operation of the railroad, rail hazardous 
materials shipper, or rail hazardous materials receiver.
    (6) Discharge, discovery, or seizure of a firearm or other deadly 
weapon on a train, in a station, terminal, facility, or storage yard, or 
other location used in the operation of the railroad, rail hazardous 
materials shipper, or rail hazardous materials receiver.
    (7) Indications of tampering with rail cars.
    (8) Information relating to the possible surveillance of a train or 
facility,

[[Page 445]]

storage yard, or other location used in the operation of the railroad, 
rail hazardous materials shipper, or rail hazardous materials receiver.
    (9) Correspondence received by the freight railroad carrier, rail 
hazardous materials shipper, or rail hazardous materials receiver 
indicating a potential threat. Other incidents involving breaches of the 
security of the freight railroad carrier, rail hazardous materials 
shipper, or rail hazardous materials receiver's operations or 
facilities.
    (d) Information reported should include, as available and 
applicable:
    (1) The name of the reporting freight railroad carrier, rail 
hazardous materials shipper, or rail hazardous materials receiver and 
contact information, including a telephone number or e-mail address.
    (2) The affected train, station, terminal, rail hazardous materials 
facility, or other rail facility or infrastructure.
    (3) Identifying information on the affected train, train line, and 
route.
    (4) Origination and termination locations for the affected train, 
including departure and destination city and the rail line and route, as 
applicable.
    (5) Current location of the affected train.
    (6) Description of the threat, incident, or activity.
    (7) The names and other available biographical data of individuals 
involved in the threat, incident, or activity.
    (8) The source of any threat information.

[73 FR 72173, Nov. 26, 2008, as amended at 74 FR 23657, May 20, 2009]



Sec.  1580.107  Chain of custody and control requirements.

    (a) Within or outside of an HTUA, rail hazardous materials shipper 
transferring to carrier. Except as provided in paragraph (g) of this 
section, at each location within or outside of an HTUA, a rail hazardous 
materials shipper transferring custody of a rail car containing one or 
more of the categories and quantities of rail security-sensitive 
materials to a freight railroad carrier must:
    (1) Physically inspect the rail car before loading for signs of 
tampering, including closures and seals; other signs that the security 
of the car may have been compromised; suspicious items or items that do 
not belong, including the presence of an improvised explosive device.
    (2) Keep the rail car in a rail secure area from the time the 
security inspection required by paragraph (a)(1) of this section or by 
49 CFR 173.31(d), whichever occurs first, until the freight railroad 
carrier takes physical custody of the rail car.
    (3) Document the transfer of custody to the railroad carrier in 
writing or electronically.
    (b) Within or outside of an HTUA, carrier receiving from a rail 
hazardous materials shipper. At each location within or outside of an 
HTUA where a freight railroad carrier receives from a rail hazardous 
materials shipper custody of a rail car containing one or more of the 
categories and quantities of rail security-sensitive materials, the 
freight railroad carrier must document the transfer in writing or 
electronically and perform the required security inspection in 
accordance with 49 CFR 174.9.
    (c) Within an HTUA, carrier transferring to carrier. Within an HTUA, 
whenever a freight railroad carrier transfers a rail car containing one 
or more of the categories and quantities of rail security-sensitive 
materials to another freight railroad carrier, each freight railroad 
carrier must adopt and carry out procedures to ensure that the rail car 
is not left unattended at any time during the physical transfer of 
custody. These procedures must include the receiving freight railroad 
carrier performing the required security inspection in accordance with 
49 CFR 174.9. Both the transferring and the receiving railroad carrier 
must document the transfer of custody in writing or electronically.
    (d) Outside of an HTUA, carrier transferring to carrier. Outside an 
HTUA, whenever a freight railroad carrier transfers a rail car 
containing one or more of the categories and quantities of rail 
security-sensitive materials to another freight railroad carrier, and 
the rail car containing this hazardous material may subsequently enter 
an HTUA, each freight railroad carrier must adopt and carry out 
procedures to

[[Page 446]]

ensure that the rail car is not left unattended at any time during the 
physical transfer of custody. These procedures must include the 
receiving railroad carrier performing the required security inspection 
in accordance with 49 CFR 174.9. Both the transferring and the receiving 
railroad carrier must document the transfer of custody in writing or 
electronically.
    (e) Within an HTUA, carrier transferring to rail hazardous materials 
receiver. A freight railroad carrier delivering a rail car containing 
one or more of the categories and quantities of rail security-sensitive 
materials to a rail hazardous materials receiver located within an HTUA 
must not leave the rail car unattended in a non-secure area until the 
rail hazardous materials receiver accepts custody of the rail car. Both 
the railroad carrier and the rail hazardous materials receiver must 
document the transfer of custody in writing or electronically.
    (f) Within an HTUA, rail hazardous materials receiver receiving from 
carrier. Except as provided in paragraph (j) of this section, a rail 
hazardous materials receiver located within an HTUA that receives a rail 
car containing one or more of the categories and quantities of rail 
security-sensitive materials from a freight railroad carrier must:
    (1) Ensure that the rail hazardous materials receiver or railroad 
carrier maintains positive control of the rail car during the physical 
transfer of custody of the rail car.
    (2) Keep the rail car in a rail secure area until the car is 
unloaded.
    (3) Document the transfer of custody from the railroad carrier in 
writing or electronically.
    (g) Within or outside of an HTUA, rail hazardous materials receiver 
rejecting car. This section does not apply to a rail hazardous materials 
receiver that does not routinely offer, prepare, or load for 
transportation by rail one or more of the categories and quantities of 
rail security-sensitive materials. If such a receiver rejects and 
returns a rail car containing one or more of the categories and 
quantities of rail security-sensitive materials to the originating 
offeror or shipper, the requirements of this section do not apply to the 
receiver. The requirements of this section do apply to any railroad 
carrier to which the receiver transfers custody of the rail car.
    (h) Document retention. Covered entities must maintain the documents 
required under this section for at least 60 calendar days and make them 
available to TSA upon request.
    (i) Rail secure area. The rail hazardous materials shipper and the 
rail hazardous materials receiver must use physical security measures to 
ensure that no unauthorized person gains access to the rail secure area.
    (j) Exemption for rail hazardous materials receivers. A rail 
hazardous materials receiver located within an HTUA may request from TSA 
an exemption from some or all of the requirements of this section if the 
receiver demonstrates that the potential risk from its activities is 
insufficient to warrant compliance with this section. TSA will consider 
all relevant circumstances, including--
    (1) The amounts and types of all hazardous materials received.
    (2) The geography of the area surrounding the receiver's facility.
    (3) Proximity to entities that may be attractive targets, including 
other businesses, housing, schools, and hospitals.
    (4) Any information regarding threats to the facility.
    (5) Other circumstances that indicate the potential risk of the 
receiver's facility does not warrant compliance with this section.
    (k) Terms used in this section. (1) As used in this section, a rail 
car is attended if an employee or authorized representative:
    (i) Is physically located on site in reasonable proximity to the 
rail car;
    (ii) Is capable of promptly responding to unauthorized access or 
activity at or near the rail car, including immediately contacting law 
enforcement or other authorities; and
    (iii) Immediately responds to any unauthorized access or activity at 
or near the rail car either personally or by contacting law enforcement 
or other authorities.

[[Page 447]]

    (2) As used in this section, maintains positive control means that 
the rail hazardous materials receiver and the railroad carrier 
communicate and cooperate with each other to provide for the security of 
the rail car during the physical transfer of custody. Attending the rail 
car is a component part of maintaining positive control.
    (3) As used in this section, document the transfer means 
documentation uniquely identifying that the rail car was attended during 
the transfer of custody, including:
    (i) Car initial and number.
    (ii) Identification of individuals who attended the transfer (names 
or uniquely identifying employee number).
    (iii) Location of transfer.
    (iv) Date and time the transfer was completed.

[73 FR 72173, Nov. 26, 2008, as amended at 74 FR 23657, May 20, 2009]



Sec.  1580.109  Preemptive effect.

    Under 49 U.S.C. 20106, issuance of the regulations in this part 
preempts any State law, regulation, or order covering the same subject 
matter, except an additional or more stringent law, regulation, or order 
that is necessary to eliminate or reduce an essentially local security 
hazard; that is not incompatible with a law, regulation, or order of the 
United States Government; and that does not unreasonably burden 
interstate commerce. For example, under 49 U.S.C. 20106, issuance of 
Sec.  1580.107 of this subpart preempts any State or tribal law, rule, 
regulation, order or common law requirement covering the same subject 
matter.



Sec.  1580.111  Harmonization of federal regulation of nuclear facilities.

    TSA will coordinate activities under this subpart with the Nuclear 
Regulatory Commission (NRC) and the Department of Energy (DOE) with 
respect to regulation of rail hazardous materials shippers and receivers 
that are also licensed or regulated by the NRC or DOE under the Atomic 
Energy Act of 1954, as amended, to maintain consistency with the 
requirements imposed by the NRC and DOE.



  Subpart C_Passenger Rail Including Passenger Railroad Carriers, Rail 
Transit Systems, Tourist, Scenic, Historic and Excursion Operators, and 
                              Private Cars



Sec.  1580.200  Applicability.

    This subpart includes requirements for:
    (a) Each passenger railroad carrier, including each carrier 
operating light rail or heavy rail transit service on track that is part 
of the general railroad system of transportation, each carrier operating 
or providing intercity passenger train service or commuter or other 
short-haul railroad passenger service in a metropolitan or suburban area 
(as described by 49 U.S.C. 20102), and each public authority operating 
passenger train service.
    (b) Each passenger railroad carrier hosting an operation described 
in paragraph (a) of this section.
    (c) Each tourist, scenic, historic, and excursion rail operator, 
whether operating on or off the general railroad system of 
transportation.
    (d) Each operator of private cars, including business/office cars 
and circus trains, on or connected to the general railroad system of 
transportation.
    (e) Each operator of a rail transit system that is not operating on 
track that is part of the general railroad system of transportation, 
including heavy rail transit, light rail transit, automated guideway, 
cable car, inclined plane, funicular, and monorail systems.



Sec.  1580.201  Rail security coordinator.

    (a) Applicability. This section applies to:
    (1) Each passenger railroad carrier, including each carrier 
operating light rail or heavy rail transit service on track that is part 
of the general railroad system of transportation, each carrier operating 
or providing intercity passenger train service or commuter or other 
short-haul railroad passenger service in a metropolitan or suburban area 
(as described by 49 U.S.C. 20102), and each public authority operating 
passenger train service.

[[Page 448]]

    (2) Each passenger railroad carrier hosting an operation described 
in paragraph (a)(1) of this section.
    (3) Each operator of a rail transit system that is not operating on 
track that is part of the general railroad system of transportation, 
including heavy rail transit, light rail transit, automated guideway, 
cable car, inclined plane, funicular, and monorail systems.
    (4) Each operator of private cars, including business/office cars 
and circus trains, on or connected to the general railroad system of 
transportation, when notified by TSA, in writing, that a security threat 
exists concerning that operation.
    (5) Each tourist, scenic, historic, or excursion operations, whether 
on or off the general railroad system of transportation, when notified 
by TSA, in writing, that a security threat exists concerning that 
operation.
    (b) Each person described in paragraph (a) of this section must 
designate and use a primary and at least one alternate RSC.
    (c) The RSC and alternate(s) must be appointed at the corporate 
level.
    (d) Each passenger railroad carrier and rail transit system required 
to have an RSC must provide to TSA the names, titles, phone number(s), 
and e-mail address(es) of the RSCs, and alternate RSCs, and must notify 
TSA within 7 calendar days when any of this information changes.
    (e) Each passenger railroad carrier and rail transit system required 
to have an RSC must ensure that at least one RSC:
    (1) Serves as the primary contact for intelligence information and 
security-related activities and communications with TSA. Any individual 
designated as an RSC may perform other duties in addition to those 
described in this section.
    (2) Is available to TSA on a 24-hours a day, 7 days a week basis.
    (3) Coordinate security practices and procedures with appropriate 
law enforcement and emergency response agencies.



Sec.  1580.203  Reporting significant security concerns.

    (a) Applicability. This section applies to:
    (1) Each passenger railroad carrier, including each carrier 
operating light rail or heavy rail transit service on track that is part 
of the general railroad system of transportation, each carrier operating 
or providing intercity passenger train service or commuter or other 
short-haul railroad passenger service in a metropolitan or suburban area 
(as described by 49 U.S.C. 20102), and each public authority operating 
passenger train service.
    (2) Each passenger railroad carrier hosting an operation described 
in paragraph (a)(1) of this section.
    (3) Each tourist, scenic, historic, and excursion rail operator, 
whether operating on or off the general railroad system of 
transportation.
    (4) Each operator of private cars, including business/office cars 
and circus trains, on or connected to the general railroad system of 
transportation.
    (5) Each operator of a rail transit system that is not operating on 
track that is part of the general railroad system of transportation, 
including heavy rail transit, light rail transit, automated guideway, 
cable car, inclined plane, funicular, and monorail systems.
    (b) Each person described in paragraph (a) of this section must 
immediately report potential threats and significant security concerns 
to DHS by telephoning the Freedom Center at 1-866-615-5150.
    (c) Potential threats or significant security concerns encompass 
incidents, suspicious activities, and threat information including, but 
not limited to, the following:
    (1) Interference with the train or transit vehicle crew.
    (2) Bomb threats, specific and non-specific.
    (3) Reports or discovery of suspicious items that result in the 
disruption of rail operations.
    (4) Suspicious activity occurring onboard a train or transit vehicle 
or inside the facility of a passenger railroad carrier or rail transit 
system that results in a disruption of rail operations.
    (5) Suspicious activity observed at or around rail cars or transit 
vehicles, facilities, or infrastructure used in the operation of the 
passenger railroad carrier or rail transit system.

[[Page 449]]

    (6) Discharge, discovery, or seizure of a firearm or other deadly 
weapon on a train or transit vehicle or in a station, terminal, 
facility, or storage yard, or other location used in the operation of 
the passenger railroad carrier or rail transit system.
    (7) Indications of tampering with passenger rail cars or rail 
transit vehicles.
    (8) Information relating to the possible surveillance of a passenger 
train or rail transit vehicle or facility, storage yard, or other 
location used in the operation of the passenger railroad carrier or rail 
transit system.
    (9) Correspondence received by the passenger railroad carrier or 
rail transit system indicating a potential threat to rail 
transportation.
    (10) Other incidents involving breaches of the security of the 
passenger railroad carrier or the rail transit system operations or 
facilities.
    (d) Information reported should include, as available and 
applicable:
    (1) The name of the passenger railroad carrier or rail transit 
system and contact information, including a telephone number or e-mail 
address.
    (2) The affected station, terminal, or other facility.
    (3) Identifying information on the affected passenger train or rail 
transit vehicle including number, train or transit line, and route, as 
applicable.
    (4) Origination and termination locations for the affected passenger 
train or rail transit vehicle, including departure and destination city 
and the rail or transit line and route.
    (5) Current location of the affected passenger train or rail transit 
vehicle.
    (6) Description of the threat, incident, or activity.
    (7) The names and other available biographical data of individuals 
involved in the threat, incident, or activity.
    (8) The source of any threat information.

[73 FR 72173, Nov. 26, 2008, as amended at 74 FR 23657, May 20, 2009]



      Sec. Appendix A to Part 1580--High Threat Urban Areas (HTUAs)

----------------------------------------------------------------------------------------------------------------
                                                                                           Previously designated
     State        Candidate urban area      Geographic area captured in the data count     urban areas included
----------------------------------------------------------------------------------------------------------------
AZ............  Phoenix Area *.........  Chandler, Gilbert, Glendale, Mesa, Peoria,       Phoenix, AZ.
                                          Phoenix, Scottsdale, Tempe, and a 10-mile
                                          buffer extending from the border of the
                                          combined area.
CA............  Anaheim/Santa Ana Area.  Anaheim, Costa Mesa, Garden Grove, Fullerton,    Anaheim, CA; Santa
                                          Huntington Beach, Irvine, Orange, Santa Ana,     Ana, CA.
                                          and a 10-mile buffer extending from the border
                                          of the combined area.
                Bay Area...............  Berkeley, Daly City, Fremont, Hayward, Oakland,  San Francisco, CA; San
                                          Palo Alto, Richmond, San Francisco, San Jose,    Jose, CA; Oakland,
                                          Santa Clara, Sunnyvale, Vallejo, and a 10-mile   CA.
                                          buffer extending from the border of the
                                          combined area.
                Los Angeles/Long Beach   Burbank, Glendale, Inglewood, Long Beach, Los    Los Angeles, CA; Long
                 Area.                    Angeles, Pasadena, Santa Monica, Santa           Beach, CA.
                                          Clarita, Torrance, Simi Valley, Thousand Oaks,
                                          and a 10-mile buffer extending from the border
                                          of the combined area.
                Sacramento Area *......  Elk Grove, Sacramento, and a 10-mile buffer      Sacramento, CA.
                                          extending from the border of the combined area.
                San Diego Area *.......  Chula Vista, Escondido, and San Diego, and a 10- San Diego, CA.
                                          mile buffer extending from the border of the
                                          combined area.
CO............  Denver Area............  Arvada, Aurora, Denver, Lakewood, Westminster,   Denver, CO.
                                          Thornton, and a 10-mile buffer extending from
                                          the border of the combined area.
DC............  National Capital Region  National Capital Region and a 10-mile buffer     National Capital
                                          extending from the border of the combined area.  Region, DC.
FL............  Fort Lauderdale Area...  Fort Lauderdale, Hollywood, Miami Gardens,       N/A.
                                          Miramar, Pembroke Pines, and a 10-mile buffer
                                          extending from the border of the combined area.
                Jacksonville Area......  Jacksonville and a 10-mile buffer extending      Jacksonville, FL.
                                          from the city border.
                Miami Area.............  Hialeah, Miami, and a 10-mile buffer extending   Miami, FL.
                                          from the border of the combined area.
                Orlando Area...........  Orlando and a 10-mile buffer extending from the  Orlando, FL.
                                          city border.
                Tampa Area *...........  Clearwater, St. Petersburg, Tampa, and a 10-     Tampa, FL.
                                          mile buffer extending from the border of the
                                          combined area.
GA............  Atlanta Area...........  Atlanta and a 10-mile buffer extending from the  Atlanta, GA.
                                          city border.
HI............  Honolulu Area..........  Honolulu and a 10-mile buffer extending from     Honolulu, HI.
                                          the city border.
IL............  Chicago Area...........  Chicago and a 10-mile buffer extending from the  Chicago, IL.
                                          city border.
IN............  Indianapolis Area......  Indianapolis and a 10-mile buffer extending      Indianapolis, IN.
                                          from the city border.
KY............  Louisville Area *......  Louisville and a 10-mile buffer extending from   Louisville, KY.
                                          the city border.

[[Page 450]]

 
LA............  Baton Rouge Area *.....  Baton Rouge and a 10-mile buffer extending from  Baton Rouge, LA.
                                          the city border.
                New Orleans Area.......  New Orleans and a 10-mile buffer extending from  New Orleans, LA.
                                          the city border.
MA............  Boston Area............  Boston, Cambridge, and a 10-mile buffer          Boston, MA.
                                          extending from the border of the combined area.
MD............  Baltimore Area.........  Baltimore and a 10-mile buffer extending from    Baltimore, MD.
                                          the city border.
MI............  Detroit Area...........  Detroit, Sterling Heights, Warren, and a 10-     Detroit, MI.
                                          mile buffer extending from the border of the
                                          combined area.
MN............  Twin Cities Area.......  Minneapolis, St. Paul, and a 10-mile buffer      Minneapolis, MN; St.
                                          extending from the border of the combined        Paul, MN.
                                          entity.
MO............  Kansas City Area.......  Independence, Kansas City (MO), Kansas City      Kansas City, MO.
                                          (KS), Olathe, Overland Park, and a 10-mile
                                          buffer extending from the border of the
                                          combined area.
                St. Louis Area.........  St. Louis and a 10-mile buffer extending from    St. Louis, MO.
                                          the city border.
NC............  Charlotte Area.........  Charlotte and a 10-mile buffer extending from    Charlotte, NC.
                                          the city border.
NE............  Omaha Area *...........  Omaha and a 10-mile buffer extending from the    Omaha, NE.
                                          city border.
NJ............  Jersey City/Newark Area  Elizabeth, Jersey City, Newark, and a 10-mile    Jersey City, NJ;
                                          buffer extending from the border of the          Newark, NJ.
                                          combined area.
NV............  Las Vegas Area *.......  Las Vegas, North Las Vegas, and a 10-mile        Las Vegas, NV.
                                          buffer extending from the border of the
                                          combined entity.
NY............  Buffalo Area *.........  Buffalo and a 10-mile buffer extending from the  Buffalo, NY.
                                          city border.
                New York City Area.....  New York City, Yonkers, and a 10-mile buffer     New York, NY.
                                          extending from the border of the combined area.
OH............  Cincinnati Area........  Cincinnati and a 10-mile buffer extending from   Cincinnati, OH.
                                          the city border.
                Cleveland Area.........  Cleveland and a 10-mile buffer extending from    Cleveland, OH.
                                          the city border.
                Columbus Area..........  Columbus and a 10-mile buffer extending from     Columbus, OH.
                                          the city border.
                Toledo Area *..........  Oregon, Toledo, and a 10-mile buffer extending   Toledo, OH.
                                          from the border of the combined area.
OK............  Oklahoma City Area *...  Norman, Oklahoma and a 10-mile buffer extending  Oklahoma City, OK.
                                          from the border of the combined area.
OR............  Portland Area..........  Portland, Vancouver, and a 10-mile buffer        Portland, OR.
                                          extending from the border of the combined area.
PA............  Philadelphia Area......  Philadelphia and a 10-mile buffer extending      Philadelphia, PA.
                                          from the city border.
                Pittsburgh Area........  Pittsburgh and a 10-mile buffer extending from   Pittsburgh, PA.
                                          the city border.
TN............  Memphis Area...........  Memphis and a 10-mile buffer extending from the  Memphis, TN.
                                          city border.
TX............  Dallas/Fort Worth/       Arlington, Carrollton, Dallas, Fort Worth,       Dallas, TX; Fort
                 Arlington Area.          Garland, Grand Prairie, Irving, Mesquite,        Worth, TX; Arlington,
                                          Plano, and a 10-mile buffer extending from the   TX.
                                          border of the combined area.
                Houston Area...........  Houston, Pasadena, and a 10-mile buffer          Houston, TX.
                                          extending from the border of the combined
                                          entity.
                San Antonio Area.......  San Antonio and a 10-mile buffer extending from  San Antonio, TX.
                                          the city border.
WA............  Seattle Area...........  Seattle, Bellevue, and a 10-mile buffer          Seattle, WA.
                                          extending from the border of the combined area.
WI............  Milwaukee Area.........  Milwaukee and a 10-mile buffer extending from    Milwaukee, WI.
                                          the city border.
----------------------------------------------------------------------------------------------------------------
* FY05 Urban Areas eligible for sustainment funding through the FY06 Urban Areas Security Initiative (UASI)
  program; any Urban Area not identified as eligible through the risk analysis process for two consecutive years
  will not be eligible for continued funding under the UASI program.



 Sec. Appendix B to Part 1580--Summary of the Applicability of Part 1580

                         [This is a summary--see body of text for complete requirements]
----------------------------------------------------------------------------------------------------------------
                                                                                 Rail
                                                  Freight    Rail operations  operations                Certain
                                    Freight      railroad       at certain    at certain              other rail
                                   railroad      carriers    facilities that  facilities   Passenger  operations
                                 carriers NOT  transporting    ship (i.e.,       that      railroad    (private,
   Security measure and rule     transporting    specified   offer, prepare,  receive or   carriers    business/
            section                specified     hazardous     or load for      unload     and rail     office,
                                   hazardous     materials   transportation)   hazardous    transit     circus,
                                   materials       (Sec.        hazardous      materials    systems    tourist,
                                               1580.100(b))     materials      within an               historic,
                                                                                 HTUA                 excursion)
----------------------------------------------------------------------------------------------------------------
Allow TSA to inspect (Sec.                X             X               X             X           X           X
 1580.5).......................
Appoint rail security                     X             X               X             X           X       (\1\)
 coordinator (Sec.   1580.101
 freight; Sec.   1580.201
 passenger)....................
Report significant security               X             X               X             X           X           X
 concerns (Sec.   1580.105
 freight; Sec.   1580.203
 passenger)....................
Provide location and shipping    ............           X               X             X
 information for rail cars
 containing specified hazardous
 materials if requested (Sec.
 1580.103).....................
Chain of custody and control     ............           X               X            X
 requirements for transport of
 specified hazardous materials
 that are or may be in HTUA
 (Sec.   1580.107).............
----------------------------------------------------------------------------------------------------------------
\1\ Only if notified in writing that a security threat exists.


[[Page 451]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the subject index volume to the Code of Federal Regulations which is 
published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  Redesignation Table
  List of CFR Sections Affected

[[Page 453]]



                    Table of CFR Titles and Chapters




                     (Revised as of October 1, 2010)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 100--
                199)
        II  Office of Management and Budget Circulars and Guidance 
                (200--299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300-- 
                399)
        IV  Department of Agriculture (Parts 400--499)
        VI  Department of State (Parts 600--699)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
        XI  Department of Defense (Parts 1100--1199)
       XII  Department of Transportation (Parts 1200--1299)
      XIII  Department of Commerce (Parts 1300--1399)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1880--1899)
        XX  United States Nuclear Regulatory Commission (Parts 
                2000--2099)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
     XXIII  Social Security Administration (Parts 2300--2399)
      XXIV  Housing and Urban Development (Parts 2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)
     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)
       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)

[[Page 454]]

     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--99)
        II  Recovery Accountability and Transparency Board (Parts 
                200--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600-- 3699)
    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Parts 4300--
                4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)

[[Page 455]]

        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
    LXVIII  Commission on Civil Rights (Parts 7800--7899)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
     LXXII  Special Inspector General for Iraq Reconstruction 
                (Parts 8200--8299)
    LXXIII  Department of Agriculture (Parts 8300--8399)
     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
      LXXX  Federal Housing Finance Agency (Parts 8700--8799)
    LXXXII  Special Inspector General for Iraq Reconstruction 
                (Parts 9200--9299)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
      XCIX  Department of Defense Human Resources Management and 
                Labor Relations Systems (Department of Defense--
                Office of Personnel Management) (Parts 9900--9999)

[[Page 456]]

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 0--99)

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)

[[Page 457]]

    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  National Institute of Food and Agriculture (Parts 
                3400--3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)
         L  Rural Business-Cooperative Service, Rurual Housing 
                Service, and Rural Utilities Service, Department 
                of Agriculture (Parts 5000--5099)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Immigration and 
                Naturalization) (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)

[[Page 458]]

         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XIII  Nuclear Waste Technical Review Board (Parts 1303--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)
        II  Election Assistance Commission (Parts 9400--9499)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XII  Federal Housing Finance Agency (Parts 1200--1299)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (Parts 
                500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)

[[Page 459]]

       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

[[Page 460]]

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  U.S. Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  U.S. Immigration and Customs Enforcement, Department 
                of Homeland Security (Parts 400--599)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)

[[Page 461]]

        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board (Parts 900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Millenium Challenge Corporation (Parts 1300--1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                HousingCommissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)

[[Page 462]]

        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
      XXIV  Board of Directors of the HOPE for Homeowners Program 
                (Parts 4000--4099)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--899)

[[Page 463]]

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)
        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Employee Benefits Security Administration, Department 
                of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

[[Page 464]]

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)

[[Page 465]]

    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvmeent, 
                Department of Education [Reserved]
        XI  National Institute for Literacy (Parts 1100--1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                          Title 35 [Reserved]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
        VI  [Reserved]
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)

[[Page 466]]

        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
       III  Copyright Royalty Board, Library of Congress (Parts 
                301--399)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)
        II  Armed Forces Retirement Home

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)

[[Page 467]]

        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
 Chapters 
   62--100  [Reserved]
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
 Chapters 
  103--104  [Reserved]
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
 Chapters 
  129--200  [Reserved]
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)

[[Page 468]]

       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10010)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899) 
                [Reserved]
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

[[Page 469]]

                          Title 46--Shipping

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)
        IV  National Telecommunications and Information 
                Administration, Department of Commerce, and 
                National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 400--499)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, Department of 
                Defense (Parts 200--299)
         3  Health and Human Services (Parts 300--399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management, Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)

[[Page 470]]

        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement [Reserved]
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  Civilian Board of Contract Appeals, General Services 
                Administration (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (Parts 
                400--499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

[[Page 471]]

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR

[[Page 473]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of October 1, 2010)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            2, IV; 5, LXXIII
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Economic Research Service                       7, XXXVII
  Energy Policy and New Uses, Office of           2, IX; 7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  National Institute of Food and Agriculture.     7, XXXIV
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII, L
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV, L
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII, L
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
   Compliance Board
[[Page 474]]

Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               44, IV
  Census Bureau                                   15, I
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV, VI
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Copyright Office                                  37, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    28, VIII
     for the District of Columbia
Customs and Border Protection Bureau              19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A; 
                                                  40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII

[[Page 475]]

  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Acquisition Regulations System          48, 2
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  Human Resources Management and Labor Relations  5, XCIX
       Systems
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Election Assistance Commission                    2, LVIII; 11, II
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                5, III, LXXVII; 14, VI; 
                                                  48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2

[[Page 476]]

  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           2, XXXV; 5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Agency                    5, LXXX; 12, XII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61

[[Page 477]]

  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102
  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A,
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  2, XXX; 6, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection Bureau            19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  Immigration and Naturalization                  8, I
  Transportation Security Administration          49, XII
HOPE for Homeowners Program, Board of Directors   24, XXIV
     of
Housing and Urban Development, Department of      2, XXIV; 5, LXV; 24, 
                                                  Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV
Immigration and Naturalization                    8, I
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
   Secretary
[[Page 478]]

Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Fishing and Related Activities      50, III
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
Investment Security, Office of                    31, VIII
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                2, XXVII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29

[[Page 479]]

  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
  Copyright Royalty Board                         37, III
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Millenium Challenge Corporation                   22, XIII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
Museum and Library Services, Institute of         2, XXXI
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 47, VI; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Food and Agriculture.       7, XXXIV
National Institute of Standards and Technology    15, II
National Intelligence, Office of Director of      32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV, VI
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       2, XXV; 5, XLIII; 45, VI

[[Page 480]]

  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III, IV
     Administration
National Transportation Safety Board              49, VIII
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     2, XX; 5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Human Resources Management and Labor Relations  5, XCIX
       Systems, Department of Defense
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory Commission                      5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Recovery Accountability and Transparency Board    4, II
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII, L
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV, L
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII, L
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
   National Security Council
[[Page 481]]

Secret Service                                    31, IV
Securities and Exchange Commission                5, XXXIV; 17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
Special Inspector General for Iraq                5, LXXXVII
     Reconstruction
State Department                                  2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 5, L
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection Bureau            19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  Investment Security, Office of                  31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       2, VIII; 38, I

[[Page 482]]

  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 483]]

                                     

                                     



                           Redesignation Table



At 71 FR 45742, Aug. 10, 2006, a document was published that transferred 
part 1420 in 49 CFR Chapter XI to 49 CFR Chapter III and redesignated it 
as new part 369. For the convenience of the user, the following 
Redesignation Table shows the relationship of the old regulations to the 
new regulations.

                           Redesignation Table
------------------------------------------------------------------------
              Old section                          New section
------------------------------------------------------------------------
           1420 Part heading                    369 Part heading
------------------------------------------------------------------------
1420.1................................  369.1
1420.2................................  369.2
1420.3................................  369.3
1420.4................................  369.4
1420.5................................  369.5
1420.6................................  369.6
1420.7 [Reserved].....................  369.7 [Reserved]
1420.8................................  369.8
1420.9................................  369.9
1420.10...............................  369.10
1420.11...............................  369.11
------------------------------------------------------------------------


[[Page 485]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations that were 
made by documents published in the Federal Register since January 1, 
2001, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 2001, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, and 1973-1985, and 1986-2000'' published 
in 11 separate volumes.

                                  2001

49 CFR
                                                                   66 FR
                                                                    Page
Chapter X
1201 Amended.......................................................56245
1244.3 Heading revised; (c) through (f) added......................53735
1247 Added..........................................................1052
Chapter XII
Chapter XII Established; interim...................................67701

                                  2002

49 CFR
                                                                   67 FR
                                                                    Page
Chapter X
1200.2 Amended.....................................................57533
1201 Nomenclature change...........................................57533
    (Subpart A) Amended............................................57533
    (Subpart B) Amended.....................................57533, 57534
1241.11 (a) amended................................................57534
1242.00 Amended....................................................57534
1243.1 Amended.....................................................57534
1243.2 Amended.....................................................57534
1244.9 Amended.....................................................57534
Chapter XII
1500 (Subchapter A) Added...........................................8351
1502 Added.........................................................48049
1503 Added; interim................................................51483
1510 Transferred to Subchapter A....................................8351
1510.17 (b) and (c) revised; interim...............................14881
1511 Added; interim.................................................7929
    Policy statement.................................21582, 56496, 66071
1511.7 Corrected....................................................8579
1520 (Subchapter B) Added...........................................8351
1540 (Subchapter C) Added...........................................8353
1540.5 Amended......................................................8209
1540.107 Revised...................................................41639
1540.111 (a)(1) revised............................................41639
1542 Added..........................................................8355
1544 Added..........................................................8364
1544.1 (a)(1) revised...............................................8209
1544.101 (c), (f) and (g) revised; (d) and (e) added................8209
    (f) revised....................................................41639
    (f) revised....................................................79887
1544.103 (c)(1) and (15) revised; (c)(21) added.....................8209
1544.230 Added......................................................8209
1544.237 Added......................................................8210
1546 Added..........................................................8377
1548 Added..........................................................8382
1550 Added..........................................................8383

                                  2003

49 CFR
                                                                   68 FR
                                                                    Page
Chapter XI
1420.2 (b)(1) and (5) amended.......................................4719
1420.3 (a), (b)(1), (4) and (c) amended.............................4719
1420.4 (b) and (c) amended..........................................4719
1420.6 Amended......................................................4719
1420.10 (a) amended.................................................4719
1420.11 Amended.....................................................4719
Chapter XII
Chapter XII Heading revised; nomenclature change...................49720
1500 Authority citation revised....................................49720
1500.3 Amended.....................................................49720

[[Page 486]]

1502 Authority citation revised....................................49720
1503 Authority citation revised; nomenclature change...............49720
1503.3 (b) amended.................................................49720
1503.5 (b)(2), (k) introductory text and (2)(C)(ii) amended........49720
    (b) corrected..................................................58281
1503.16 (f) amended................................................49720
    (f) corrected..................................................58281
1503.209 (b) amended...............................................49720
    (b) corrected..................................................58281
1503.210 (a) amended...............................................49720
    (a) corrected..................................................58281
1503.230 (b)(2)(C)(ii) amended.....................................49720
1503.233 (a) amended...............................................49720
    (a)corrected...................................................58281
1510 Policy statement...............................................3192
    Authority citation revised.....................................49720
1510.3 Amended.....................................................49720
1510.5 Suspended (temporary).......................................27751
1510.9 (a), (b) and (c) suspended (temporary)......................27751
1510.19 Revised....................................................49720
1510.23 Added (temporary)..........................................27751
1511 Authority citation revised....................................49720
1511.3 Amended.....................................................49720
1511.5 (a), (b) and (c) suspended (temporary)......................27752
1511.7 (b) suspended (temporary)...................................27752
1511.11 (a) introductory text revised..............................49720
1511.15 Added (temporary)..........................................27752
1540 Policy statement...............................................7444
    Technical correction............................................9902
    Authority citation revised.....................................49721
1540.115 Added......................................................3761
    (b) amended....................................................49721
1540.117 Added......................................................3768
1542 Authority citation revised....................................49721
1544 Authority citation revised....................................49721
1546 Authority citation revised....................................49721
1548 Authority citation revised....................................49721
1550 Authority citation revised....................................49721
1570--1572 (Subpart D) Added; interim...............................6086
1570 Added; interim................................................23869
1572 Authority citation revised....................................23869
1572.1--1572.11 (Subpart A) Subpart designation and heading added; 
        interim....................................................23869
1572.3 Added; interim..............................................23869
    1572.3 Amended; interim........................................63039
1572.5 Added; interim..............................................23869
    1572.5 (b)(2)(i), (ii), (c)(1), (2) introductory text and (3) 
revised; (c)(4) added; interim.....................................63039
1572.101--1572.143 (Subpart B) added; interim......................23871

                                  2004

49 CFR
                                                                   69 FR
                                                                    Page
Title 49 Nomenclature change.......................................18803
Chapter X
1201 Authority citation revised....................................58366
Chapter XII
1507 Added.........................................................35537
1520 Revised; interim..............................................28082
1552 Added; interim................................................56340
1572 Revised; interim..............................................68742
1572.3 Amended.....................................................17973
1572.5 (b)(2) and (c)(1) through (4) revised.......................17973

                                  2005

49 CFR
                                                                   70 FR
                                                                    Page
Chapter XI
1400--1499 (Chapter XI) Heading revised.............................8301
Chapter XII
1507 Authority citation revised....................................33384
1507.3 (i) added...................................................33384
1520.3 Amended; interim............................................41599
1520.5 (b)(1)(i) revised; (b)(8)(iv) added; interim................41599
1520.7 (a) revised; interim........................................41600
1520.11 (a) amended.................................................1382
1540 Interpretation...................................9877, 51679, 72930
1540.111 (a)(3), (b)(2) and (c) revised; interim...................41600
1562 Added; interim.................................................7162
    Heading revised; interim.......................................41600
    Authority citation revised.....................................41600
1562.21--1562.29 (Subpart B) Added; interim........................41600
1572 Authority citation revised.....................................2558

[[Page 487]]

1572.301--157.399 (Subpart D) Added.................................2558
1572.401--1572.405 (Subpart E) Added................................2558

                                  2006

49 CFR
                                                                   71 FR
                                                                    Page
Chapter XI
1420 Redesignated as Part 369......................................45742
Chapter XII
1507.3 (a), (c) and (d) revised; (j) added.........................44227
1520.5 (b)(2)(i), (3)(i) and (4)(i) revised; eff. 10-23-06.........30507
1540.5 Amended; eff. 10-23-06......................................30507
1540.111 (a)(1) revised; eff. 10-23-06.............................30507
1540.201--1540.209 (Subpart C) Added; eff. 10-23-06................30507
1542.1 (d) added; eff. 10-23-06....................................30509
1542.5 (e) added; eff. 10-23-06....................................30509
1542.101 (a) introductory text, (b) and (c) introductory text 
        revised; eff. 10-23-06.....................................30509
1542.205 (a) and (b)(2) revised; (c) added; eff. 10-23-06..........30509
1544.3 (c) revised; eff. 10-23-06..................................30510
1544.101 (d)(1), (4) and (e)(1) revised; (h) and (i) added; eff. 
        10-23-06...................................................30510
1544.202 Added; eff. 10-23-06......................................30510
1544.205 Revised; eff. 10-23-06....................................30510
1544.217 (a)(2) introductory text and (b) introductory text 
        revised; eff. 10-23-06.....................................30510
1544.225 (d) added; eff. 10-23-06..................................30510
1544.228 Added; eff. 10-23-06......................................30511
    (d) correctly amended; eff. 10-23-06...........................31964
    (d) revised; interim...........................................62549
1544.229 Introductory text added; (a)(1)(iii) revised; eff. 10-23-
        06.........................................................30511
1544.239 Added; eff. 10-23-06......................................30511
1546.3 (c) added; eff. 10-23-06....................................30511
1546.101 Introductory text and (a) revised; (e) and (f) added; 
        eff. 10-23-06..............................................30511
1546.103 (a)(1) and (b) introductory text revised; eff. 10-23-06 
                                                                   30512
1546.202 Added; eff. 10-23-06......................................30512
1546.205 Revised; eff. 10-23-06....................................30512
1546.213 Added; eff. 10-23-06......................................30512
    (d) correctly amended; eff. 10-23-06...........................31964
    (d) revised; interim...........................................62549
1546.215 Added; eff. 10-23-06......................................30512
1546.301 Introductory text revised; eff. 10-23-06..................30513
1548.1 Introductory text correctly amended; eff. 10-23-06..........33255
1548.3 (c) added; eff. 10-23-06....................................30513
1548.5 (a), (b) and (c) revised; eff. 10-23-06.....................30513
    (a) correctly amended; eff. 10-23-06...........................31964
1548.7 Revised; eff. 10-23-06......................................30513
1548.9 Revised; eff. 10-23-06......................................30515
1548.11 Added; eff. 10-23-06.......................................30515
    (d) revised; interim...........................................62549
1548.13 Added; eff. 10-23-06.......................................30515
1548.15 Added; eff. 10-23-06.......................................30516
    (d) correctly amended; eff. 10-23-06...........................31965
    (d) revised; interim...........................................62549
1548.16 Added; eff. 10-23-06.......................................30516
    (a) correctly amended; eff. 10-23-06...........................31965
    (a) revised; interim...........................................62550
1548.17 Added; eff. 10-23-06.......................................30516
1548.19 Added; eff. 10-23-06.......................................30516
1572.201--1572.203 (Subpart C) Heading revised; interim............44881
1572.201 Revised; interim..........................................44881

                                  2007

49 CFR
                                                                   72 FR
                                                                    Page
Chapter X
1243.3 Added; eff. 11-12-07........................................45386
Chapter XII
1507.3 (k) added...................................................63709
1515 Added..........................................................3588
1515.5 (h) and (i) correctly redesignated as (g) and (h)...........14049
1515.11 (b)(1)(i) corrected.........................................5633
1540 Revised........................................................3592
1540 Policy statement..............................................40262
1540.201 (a)(4) corrected..........................................14049
1540.203 (b)(2)(ii) corrected......................................14050
1540.205 (e) correctly redesignated as (d)..........................5633
    (d) corrected..................................................14050
1544.228 (d) revised; (e) added; interim...........................13025
1546.213 (d) revised; (e) added; interim...........................13026

[[Page 488]]

1548.15 (d) revised; (e) added; interim............................13026
1548.16 (a) revised; (d) added; interim............................13026
1570 Revised........................................................3593
1570.3 Correctly amended...........................................14050
1572 Revised........................................................3595
    Meeting........................................................63106
    Policy statement...............................................13026
1572.3 (b)(2) revised..............................................55048
1572.19 (b) revised................................................55048
1572.103 (a)(5), (10), (b)(2)(xii) and (xiii) corrected.............5633
    Second (b)(2)(xi), (xii), (xiii) and (xiv) correctly 
redesignated as (b)(2)(xii) through (xv)...........................14050
    Second (b)(2)(xii) correctly designated as (b)(2)(xiii)........15195
1572.105 (a)(7) revised............................................55049
1572.401 (a) corrected.............................................14050
1572.501 (b), (c) and (d) revised..................................55049

                                  2008

49 CFR
                                                                   73 FR
                                                                    Page
Chapter X
1244.4 (c)(1) revised..............................................66803
Chapter XII
1520.3 Amended.....................................................72172
1520.5 (b)(6)(i), (8) introductory text, (10), (11)(i)(A), (12) 
        introductory text and (15) revised.........................72172
1520.7 (n) added...................................................72173
1540.107 Revised...................................................64061
1544.103 (c)(22) added.............................................64061
1560 Added.........................................................64061
1570 Authority citation revised....................................44669
1570.13 Added; interim.............................................44669
1572.19 (b) amended................................................25566
1572.105 (a)(7)(x) correctly redesignated as (a)(7)(xi); 
        (a)(7)(ix) and new (xi) correctly revised; new (a)(7)(x) 
        correctly added............................................13156
1580 Added.........................................................72173
1580.107 Eff. date delayed to 4-1-09...............................77531

                                  2009

49 CFR
                                                                   74 FR
                                                                    Page
Chapter X
1240--1259 Note revised............................................52911
1241 Note revised..................................................52911
1242 Note revised..................................................52911
1243 Note revised..................................................52911
1245 Note revised..................................................52911
1246.1 Note revised................................................52911
1248 Note revised..................................................52911
1253 Note revised..................................................52912
1253.20 (c) revised................................................52912
1260--1269 Note revised............................................52912
Chapter XII
1503 Revised.......................................................36039
1515.1 (a) revised; interim; eff. 11-16-09.........................47695
1515.9 (a)(3), (c)(1)(iv) and (v) added; (f)(3) revised; interim; 
        eff. 11-16-09..............................................47695
1515.11 (a)(3) revised; interim; eff. 11-16-09.....................47695
1520.3 Amended; interim; eff. 11-16-09.............................47695
1520.5 (b)(1) revised; interim; eff. 11-16-09......................47695
1520.7 (b) revised; interim; eff. 11-16-09.........................47695
1522 Added; interim; eff. 11-16-09.................................47695
1540.5 Amended; interim; eff. 11-16-09.............................47700
1540.201--1540.209 (Subpart C) Revised; interim; eff. 11-16-09.....47700
1540.301--1540.303 (Subpart D) Added; interim; eff. 11-16-09.......47703
1544.205 (e) revised; (g) added; interim; eff. 11-16-09............47703
1544.228 Revised; interim; eff. 11-16-09...........................47704
1544.401 Revised; interim; eff. 11-16-09...........................47704
1544.403 Removed; interim; eff. 11-16-09...........................47704
1544.405 Heading revised; interim; eff. 11-16-09...................47704
1544.407 Heading and (c) revised; interim; eff. 11-16-09...........47704
1544.409 Heading revised; interim; eff. 11-16-09...................47704
1544.411 Heading revised; interim; eff. 11-16-09...................47704
1546.205 (d) and (e) revised; (g) added; interim; eff. 11-16-09....47704
1546.213 Revised; interim; eff. 11-16-09...........................47705
1546.401 Revised; interim; eff. 11-16-09...........................47705
1546.403 Removed; interim; eff. 11-16-09...........................47705

[[Page 489]]

1546.405 Heading revised; interim; eff. 11-16-09...................47705
1546.407 Heading revised; interim; eff. 11-16-09...................47705
1546.409 Heading revised; interim; eff. 11-16-09...................47705
1546.411 Heading revised; interim; eff. 11-16-09...................47705
1548.7 (f) revised; interim; eff. 11-16-09.........................47705
1548.15 Revised; interim; eff. 11-16-09............................47705
1548.16 (a) revised; interim; eff. 11-16-09........................47706
1548.21 Added; interim; eff. 11-16-09..............................47706
1549 Added; interim; eff. 11-16-09.................................47706
1570 Regulation at 73 FR 44669 confirmed...........................30479
1570.13 Regulation at 73 FR 44669 confirmed........................30479
1580.100 (a)(4) correctly revised..................................23656
1580.101 (a)(4) correctly revised..................................23656
1580.103 (g) introductory text and (2) correctly revised...........23657
1580.105 (a)(4) and (b) correctly revised..........................23657
1580.107 (a) introductory text correctly revised...................23657
1580.203 (b) correctly revised.....................................23657

                                  2010

  (Regulations published from January 1, 2010, through October 1, 2010)

49 CFR
                                                                   75 FR
                                                                    Page
Chapter XII
1503.629 (d) revised...............................................58333
1503.631 (c)(2) amended............................................58334
1503.659 (e) revised...............................................58334


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