[Title 49 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2014 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]



          Title 49

Transportation


________________________

Part 1200 to End

                         Revised as of October 1, 2014

          Containing a codification of documents of general
          applicability and future effect

          As of October 1, 2014
                    Published by the Office of the Federal Register
                    National Archives and Records Administration as 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
              prima facie evidence of the original documents published in
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          It is prohibited to use NARA's official seal and the stylized Code
              of Federal Regulations logo on any republication of this
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              Any person using NARA's official seals and logos in a manner
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          Use of ISBN Prefix

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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                          241
  Finding Aids:
      Table of CFR Titles and Chapters........................     457
      Alphabetical List of Agencies Appearing in the CFR......     477
      Redesignation Table.....................................     487
      List of CFR Sections Affected...........................     489

[[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, 2014), 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.

PAST PROVISIONS OF THE CODE

    Provisions of the Code that are no longer in force and effect as of
the revision date stated on the cover of each volume are not carried.
Code users may find the text of provisions in effect on any given date
in the past by using the appropriate List of CFR Sections Affected
(LSA). For the convenience of the reader, a ``List of CFR Sections
Affected'' is published at the end of each CFR volume. For changes to
the Code prior to the LSA listings at the end of the volume, consult
previous annual editions of the LSA. For changes to the Code prior to
2001, consult the List of CFR Sections Affected compilations, published
for 1949-1963, 1964-1972, 1973-1985, and 1986-2000.

``[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.
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CFR INDEXES AND TABULAR GUIDES

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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.

[[Page vii]]

    An index to the text of ``Title 3--The President'' is carried within
that volume.
    The Federal Register Index is issued monthly in cumulative form.
This index is based on a consolidation of the ``Contents'' entries in
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    A List of CFR Sections Affected (LSA) is published monthly, keyed to
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

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in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this
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    The e-CFR is a regularly updated, unofficial editorial compilation
of CFR material and Federal Register amendments, produced by the Office
of the Federal Register and the Government Printing Office. It is
available at www.ecfr.gov.

    Charles A. Barth,
    Director,
    Office of the Federal Register.
    October 1, 2014.







[[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
100-177, parts 178-199, 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-
177) and the third volume (parts 178-199) 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, 2014.

    In the volume containing parts 100-177, 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 John
Hyrum Martinez, assisted by Jim Hemphill.

[[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.....................         165
                        PARTS 1240-1259--REPORTS
1241            Annual, special, or periodic reports--
                    Carriers subject to Part I of the
                    Interstate Commerce Act.................         170
1242            Separation of common operating expenses
                    between freight service and passenger
                    service for railroads...................         171
1243            Quarterly operating reports--railroads......         184
1244            Waybill analysis of transportation of
                    property--railroads.....................         185
1245            Classification of railroad employees;
                    reports of service and compensation.....         192
1246            Number of railroad employees................         206
1247            Report of cars loaded and cars terminated...         206
1248            Freight commodity statistics................         206
1250-1252

 [Reserved]

[[Page 6]]

1253            Rate-making organization; records and
                    reports.................................         212
                       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.................         213
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................         217
1301

[Reserved]

1302            Export and import shipments; railroads......         219
1305            Disclosure and notice of change of rates and
                    other service terms for pipeline common
                    carriage................................         219
1310            Tariff requirements for household goods
                    carriers................................         221
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.........         223
1313            Railroad contracts for the transportation of
                    agricultural products...................         229
1319            Exemptions..................................         235
1320-1324

 [Reserved]

1325            Extension of credit to candidates for
                    Federal office or their representatives.         235
1331            Applications under 49 U.S.C. 10706 and 13703         236
1332            Filing contracts for surface mail
                    transportation..........................         237
1333            Demurrage liability.........................         238
1334-1399

 [Reserved]

[[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



[[Page 76]]

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 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



[[Page 77]]

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
    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                                *12-22-00
 Compensation_Equipment_Freight Cars........................
Fringe Benefits Not Included in Compensation_Equipment_Other    12-23-00
 Equipment..................................................
Fringe Benefits Not Included in                                 12-31-00
 Compensation_Transportation_Train..........................
Fringe Benefits Not Included in                                 12-32-00
 Compensation_Transportation_Yard...........................
Fringe Benefits Not Included in                                 12-33-00
 Compensation_Transportation_Train and Yard Common..........
Fringe Benefits Not Included in                                 12-34-00
 Compensation_Transportation_Specialized Services...........
Fringe Benefits Not Included in                                 12-35-00
 Compensation_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

[[Page 78]]

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:
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

[[Page 79]]


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:

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

[[Page 80]]


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
    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

[[Page 81]]


    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 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



[[Page 82]]

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
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



[[Page 83]]

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


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



[[Page 84]]

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
    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

[[Page 85]]


    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:

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

[[Page 86]]


    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
    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..................................................

[[Page 87]]


    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


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.

[[Page 88]]

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 Common.    51-33-00
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
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

[[Page 89]]

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
    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

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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


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



[[Page 91]]

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-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:

[[Page 92]]



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. 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,

[[Page 93]]

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.
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

[[Page 94]]

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, 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;

[[Page 95]]

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 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,

[[Page 96]]

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
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

[[Page 97]]

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 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.

[[Page 98]]

     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, 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.

[[Page 99]]

    (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 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

[[Page 100]]

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 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.

[[Page 101]]

    (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.

    (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.

[[Page 102]]

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 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]

[[Page 103]]

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.
    (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

[[Page 104]]

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 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]

[[Page 105]]

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.
    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

[[Page 106]]

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.''
    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:


[[Page 107]]


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 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

[[Page 108]]

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............  ......

                     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................................  ......

[[Page 109]]


  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 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.

[[Page 110]]

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.)
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

[[Page 111]]

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.
    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

[[Page 112]]

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, ``Uncollectible 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 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

[[Page 113]]

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.
    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

[[Page 114]]

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 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.

[[Page 115]]

    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.
    (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.''

[[Page 116]]

    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.
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.


[[Page 117]]


    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 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.

[[Page 118]]

                           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 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

[[Page 119]]

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 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,

[[Page 120]]

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.
    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]

[[Page 121]]

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 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

[[Page 122]]

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.
    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

[[Page 123]]

(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.
    (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.

[[Page 124]]

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 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

[[Page 125]]

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.
    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.''

[[Page 126]]

    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.
    (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

[[Page 127]]

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
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

[[Page 128]]

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, ``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).

[[Page 129]]

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.
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.

[[Page 130]]


                                    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  ............  ..........  ..........
                                            ......  ..........    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

[[Page 131]]


                                            ......    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
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

[[Page 132]]


                                            ......  ..........    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
                                            ......    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

[[Page 133]]


                                            ......    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_Dr     336  ..........  ..........      37-21-00  ..........  ..........
                                            ......  ..........  ..........      37-22-00  ..........  ..........
                                            ......  ..........  ..........      37-23-00  ..........  ..........
Joint maintenance of equipment expenses_Cr     337  ..........  ..........      38-21-00  ..........  ..........
                                            ......  ..........  ..........      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  ..........  ............  ..........  ..........
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  ..........  ..........

[[Page 134]]


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
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

[[Page 135]]


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                  447  ..........  ..........      37-34-00  ..........  ..........
 facilities_Dr............................
                                            ......  ..........  ..........      37-35-00  ..........  ..........
Operating joint miscellaneous                  448  ..........  ..........      38-34-00  ..........  ..........
 facilities_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  ..........  ............  ..........  ..........
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  ..........  ............  ..........  ..........

[[Page 136]]


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.
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.

[[Page 137]]


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             591    591  Provision for deferred
 taxes_extraordinary items.                     taxes_extraordinary
                                                items.
Cumulative effect of changes in    592    592  Cumulative effect of
 accounting principles.                         changes in accounting
                                                principles.
------------------------------------------------------------------------


                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.
------------------------------------------------------------------------

[[Page 138]]


                                  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.
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.

[[Page 139]]


                                ......     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 current
                                                 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.
------------------------------------------------------------------------



                 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

[[Page 140]]

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 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.

[[Page 141]]

    (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................................  ..........
------------------------------------------------------------------------


                                          (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

[[Page 142]]


  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
  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.....  ..........  ...............  .............  ............

[[Page 143]]


  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............  ..........  ...............  .............  ............
  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)...............  ..........  ...............  .............  ............

[[Page 144]]


  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........  ..........  ...............  .............  ............
  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   ............

[[Page 145]]


  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...............................  ..........
  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.............................................
                                                             -----------
------------------------------------------------------------------------


[[Page 146]]


                            (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...  ..........  ..........  ..........
  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...........  ..........  ..........  ..........

[[Page 147]]


  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.
    (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.

[[Page 148]]

    (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.
    (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

[[Page 149]]

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.

                          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

[[Page 150]]

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
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:

[[Page 151]]



                       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
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

[[Page 152]]

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, 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                                 12-21-00
 compensation_equipment_locomotives: Freight...............


    This account includes amounts payable to others, or other costs
charged to expense, for employee benefits which are not considered

[[Page 153]]

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                                 12-22-00
 compensation_equipment_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                                 12-23-00
 compensation_equipment_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                                 12-31-00
 compensation_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                                 12-32-00
 compensation_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                                 12-33-00
 compensation_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                                 12-34-00
 compensation_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                                 12-35-00
 compensation_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 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

[[Page 154]]

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,                              21-21-XX
 lubricants_equipment_locomotives: 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 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,                              21-22-XX
 lubricants_equipment_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,                              21-23-XX
 lubricants_equipment_other equipment: Freight.............



[[Page 155]]

    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,                              21-31-XX
 lubricants_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,                              21-32-XX
 lubricants_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,                              21-33-XX
 lubricants_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 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,                              21-34-XX
 lubricants_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,                              21-35-XX
 lubricants_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

[[Page 156]]

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: freight..     31-12-00
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: freight.     32-12-00
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: Freight..     33-21-00
Joint facility rents_debit_equiment_freight cars: Freight..     33-22-00

[[Page 157]]


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_switching:       34-12-00
 Freight...................................................
Joint facility rents_credit_way and structures_other:           34-13-00
 Freight...................................................
Joint facility rents_credit_equipment_locomotives: Freight.     34-21-00
Joint facility rents_credit_equipment_freight cars: Freight     34-22-00
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: Freight.     37-12-00
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
Joint facility_debit_transportation_train: Freight.........     37-31-00
Joint facility_debit_transportation_yard: Freight..........     37-32-00
Joint facility_debit_transportation_specialized services:       37-34-00
 Freight...................................................
Joint facility_debit_transportation_administrative support:     37-35-00
 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: Freight..     38-11-00
Joint facility_credit_way and structures_switching: Freight     38-12-00
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 services:      38-34-00
 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

[[Page 158]]

accounts in accordance with instruction 1-8 of Part 1201, Subpart A:

Repairs billed by others_debit_way and structures_running:      39-11-XX
 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                          39-12-XX
 structures_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 equipment:       39-23-XX
 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:

                   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_running:     40-11-XX
 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                         40-12-XX
 structures_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:

[[Page 159]]



                   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_other:       40-13-XX
 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 equipment:      40-23-XX
 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:

                   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: Freight.     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

[[Page 160]]


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: Freight     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:

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:

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..........................................



[[Page 161]]

    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 services:     51-34-00
 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.
    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

[[Page 162]]


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 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. 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
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:

[[Page 163]]



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: Freight     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 definition of specialized services. This
account shall be subdivided by the following functions:

Administration_general.....................................     61-34-01

                         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

[[Page 164]]


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.
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,

[[Page 165]]

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:

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.

[[Page 166]]



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 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.

[[Page 167]]


    (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.
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.

[[Page 168]]


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.
    (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.

[[Page 169]]


    (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.
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]

[[Page 170]]



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]



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) Expenditures and certain statistical information, as described
below, for Positive Train Control (PTC) installation, maintenance, and
operation shall be separately identified in a supplement to the Railroad
Annual Report Form R-1 and submitted with the Railroad Annual Report
Form R-1. This supplement shall identify PTC-related expenditures on
road property and equipment improvements, depreciation of road property
and equipment, accumulated depreciation, investment in railway property,
and railway operating expenses. The supplement shall also identify the
total mileage on which carriers install PTC and the number of
locomotives equipped with PTC. The supplement shall include

[[Page 171]]

PTC-related expenditures for passenger-only service not otherwise
captured in the individual schedules. In addition to separating capital
expenses and operating expenses incurred by the railroad for PTC, the
respondent entity shall include the value of funds received from non-
government and government transfers to include grants, subsidies, and
other contributions or reimbursements that the respondent entity used to
purchase or create PTC assets or to offset PTC costs.

(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; 78 FR 51083, Aug. 20, 2013]



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).
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).

[[Page 172]]

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).
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;

[[Page 173]]

          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.



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.

[[Page 174]]



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, 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

[[Page 175]]

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--communications (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)



Sec. 1242.14  Administration--other (account XX-19-06).

    Separate common administration--other expenses between freight and

[[Page 176]]

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 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

[[Page 177]]

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, 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).

[[Page 178]]

    (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 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

[[Page 179]]

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.

                             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)

[[Page 180]]



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).



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

[[Page 181]]

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.



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

[[Page 182]]

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).



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).

[[Page 183]]

                    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 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).

[[Page 184]]


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 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]

[[Page 185]]



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 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.

[[Page 186]]

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.



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

[[Page 187]]

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 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:

[[Page 188]]



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

[[Page 189]]

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 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 pending 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

[[Page 190]]

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.
    (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

[[Page 191]]

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.
    (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

[[Page 192]]

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 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

[[Page 193]]

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 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

[[Page 194]]

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 195]]



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,           providing 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 196]]


    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 197]]


    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.
    400     Maintenance of
             Equipment and
                 Stores

[[Page 198]]


    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            Crane Operator, Load Dispatcher,     Corresponds with
          (B).                  workers_occupations   Power Station Operator, Assistant    present STB No. 59.
                                specialized in        Power Director.
                                operating heavy
                                equipment.
    413  Electrical Workers    Electrical            Coal and Ore Elevator Operator       Corresponds with
          (C).                  Workers_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 199]]


    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.
    520  Bridge and Crossing   Title is descriptive  Bridge Flagman, Crossing Gateman...  Corresponds with
          Flagmen and Gatemen.                                                             present STB No. 103.

[[Page 200]]


    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
          Operators and         not part of yard      Herder, Yard Pilot.                  classification_part
          Ground Service        crew.                                                      of present STB No.
          Employees.                                                                       119; adds new 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 201]]


    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 202]]



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 203]]


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 204]]


  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 205]]


  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 206]]


  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 207]]

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 208]]

    (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 209]]


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 210]]


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 211]]


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 212]]


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 213]]

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 214]]

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 215]]



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 217]]



              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 218]]

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 219]]

                          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 220]]

    (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 221]]

    (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 222]]

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 223]]

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 224]]

    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 225]]

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\ x 11 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 226]]

    (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 227]]

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 228]]

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 229]]



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 230]]

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 231]]

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 232]]

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 233]]

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 234]]

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 235]]

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 236]]



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 237]]

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 238]]



PART 1333_DEMURRAGE LIABILITY--Table of Contents



Sec.
1333.1 Demurrage defined.
1333.2 Who may charge demurrage.
1333.3 Who is subject to demurrage.

    Authority: 49 U.S.C. 721.

    Source: 79 FR 21412, Apr. 16, 2014, unless otherwise noted.



Sec. 1333.1  Demurrage defined.

    Demurrage is a charge that both compensates rail carriers for the
expenses incurred when rail cars are detained beyond a specified period
of time (i.e., free time) for loading or unloading, and serves as a
penalty for undue car detention to encourage the efficient use of rail
cars in the rail network.



Sec. 1333.2  Who may charge demurrage.

    Demurrage shall be assessed by the serving rail carrier, i.e., the
rail carrier providing rail cars to a shipper at an origin point or
delivering them to a receiver at an end-point or intermediate
destination. A serving carrier and its customers (including those to
which it delivers rail cars at origin or destination) may enter into
contracts pertaining to demurrage, but in the absence of such contracts,
demurrage will be governed by the demurrage tariff of the serving
carrier.



Sec. 1333.3  Who is subject to demurrage.

    Any person receiving rail cars from a rail carrier for loading or
unloading who detains the cars beyond the period of free time set forth
in the governing demurrage tariff may be held liable for demurrage if
the carrier has provided that person with actual notice of the demurrage
tariff providing for such liability prior to the placement of the rail
cars. The notice required by this section shall be in written or
electronic form.

                       PARTS 1334	1399 [RESERVED]

[[Page 239]]



     CHAPTER XI--RESEARCH AND INNOVATIVE TECHNOLOGY ADMINISTRATION,
                 DEPARTMENT OF TRANSPORTATION [RESERVED]




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

[[Page 241]]



   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.....         243
1502            Organization, functions, and procedures.....         243
1503            Investigative and enforcement procedures....         244
1507            Privacy Act-Exemptions......................         271
1510            Passenger civil aviation security service
                    fees....................................         279
1511            Aviation security infrastructure fee........         283
1515            Appeal and waiver procedures for security
                    threat assessments for individuals......         294
      SUBCHAPTER B--SECURITY RULES FOR ALL MODES OF TRANSPORTATION
1520            Protection of sensitive security information         303
                  SUBCHAPTER C--CIVIL AVIATION SECURITY
1540            Civil aviation security: General rules......         311
1542            Airport security............................         322
1544            Aircraft operator security: Air carriers and
                    commercial operators....................         340
1546            Foreign air carrier security................         366
1548            Indirect air carrier security...............         377
1549            Certified cargo screening program...........         384
1550            Aircraft security under general operating
                    and flight rules........................         391
1552            Flight schools..............................         392
1554            Aircraft repair station security............         398
1560            Secure flight program.......................         402

[[Page 242]]

1562            Operations in the Washington, DC,
                    metropolitan area.......................         410
         SUBCHAPTER D--MARITIME AND LAND TRANSPORTATION SECURITY
1570            General rules...............................         421
1572            Credentialing and security threat
                    assessments.............................         424
1580            Rail transportation security................         442
1581-1699

 [Reserved]

[[Page 243]]



            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 244]]

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_General

Sec.
1503.1 Scope.
1503.3 Reports by the public of security problems, deficiencies, and
          vulnerabilities.

       Subpart B_Scope of Investigative and Enforcement Procedures

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: 6 U.S.C. 1142; 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.

    Source: 74 FR 36039, July 21, 2009, unless otherwise noted.



                            Subpart A_General

    Source: 76 FR 22630, Apr. 22, 2011, unless otherwise noted.



Sec. 1503.1  Scope.

    This part provides information on TSA's investigative and
enforcement procedures.

[[Page 245]]



Sec. 1503.3  Reports by the public of security problems, deficiencies,
and vulnerabilities.

    This section prescribes the reporting mechanisms that persons may
use in order to obtain a receipt for reports to TSA regarding
transportation-related security problems, deficiencies, and
vulnerabilities.
    (a) Any person who reports to TSA a transportation security-related
problem, deficiency, or vulnerability--including the security of
aviation, commercial motor vehicle, maritime, pipeline, any mode of
public transportation, or railroad transportation--will receive a
receipt for their report if they provide valid contact information and
report through one of the following:
    (1) U.S. mail to Transportation Security Administration HQ, TSA-2;
Attn: 49 CFR 1503.3 Reports; 601 South 12th Street; Arlington, VA 20598-
6002;
    (2) Internet at http://www.tsa.gov/contact, selecting ``Security
Issues''; or
    (3) Telephone (toll-free) at 1-866-289-9673.
    (b) Reports submitted by mail will receive a receipt through the
mail, reports submitted by the Internet will receive an e-mail receipt,
and reports submitted by phone will receive a call identifier number
linked to TSA documents held according to published record schedules. To
obtain a paper copy of reports provided by phone, the person who made
the report, or their authorized representative, must contact TSA at the
address identified in (a)(1) of this section within that period and
provide the identifier number.
    (c) TSA will review and consider the information provided in any
report submitted under this section and take appropriate steps to
address any problems, deficiencies, or vulnerabilities identified.
    (d) Nothing in this section relieves a person of a separate
obligation to report information to TSA under another provision of this
title, a security program, or a security directive, or to another
Government agency under other law.
    (e) Immediate or emergency security or safety concerns should be
reported to the appropriate local emergency services operator, such as
by telephoning 911. Alleged waste, fraud, and abuse in TSA programs
should be reported to the Department of Homeland Security Inspector
General: telephone (toll-free) 1-800-323-8603, or e-mail
[email protected].



       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:
    (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

[[Page 246]]

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.
    (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.

[[Page 247]]



                 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 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:

[[Page 248]]



 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.
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,

[[Page 249]]

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.
    (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

[[Page 250]]

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.
    (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.

[[Page 251]]



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 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,

[[Page 252]]

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 (``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:

[[Page 253]]

    (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 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

[[Page 254]]

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.
    (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)

[[Page 255]]

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.
    (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.

[[Page 256]]



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 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.

[[Page 257]]

    (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 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,

[[Page 258]]

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.
    (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

[[Page 259]]

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. 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

[[Page 260]]

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 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

[[Page 261]]

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 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

[[Page 262]]

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 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

[[Page 263]]

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 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.

[[Page 264]]



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.
    (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,

[[Page 265]]

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.
    (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.

[[Page 266]]



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 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

[[Page 267]]

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 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

[[Page 268]]

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
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

[[Page 269]]

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 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

[[Page 270]]

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 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.

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    (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 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

[[Page 272]]

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 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

[[Page 273]]

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.
    (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

[[Page 274]]

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 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:

[[Page 275]]

    (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 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

[[Page 276]]

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.
    (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

[[Page 277]]

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:
    (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

[[Page 278]]

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:
    (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.

[[Page 279]]

    (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 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.

[[Page 280]]

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.

[79 FR 35472, June 20, 2014]



Sec. 1510.3  Definitions.

    In addition to the definitions in Sec. Sec. 1500.3, 1503.103, and
1540.5 of this chapter, the following terms are used in this part:
    Air carrier means a citizen of the United States who undertakes
directly to engage in or provide air transportation.
    Air transportation means continental interstate air transportation,
continental intrastate air transportation, foreign air transportation,
non-continental interstate air transportation, or non-continental
intrastate 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.
    Continental interstate air transportation means the carriage by
aircraft of persons for compensation or hire within the continental
United States.
    Continental intrastate air transportation means the carriage by
aircraft of persons for compensation or hire wholly within the same
state of the continental United States.
    Continental United States means the District of Columbia and the
States other than Alaska and Hawaii.
    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.
    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.
    Non-continental interstate air transportation means the carriage by
aircraft of persons for compensation or hire within the United States,
but outside the continental United States.
    Non-continental intrastate air transportation means the carriage by
aircraft of persons for compensation or hire wholly within the same
state, territory or possession of the United States, but outside the
continental 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 continuous air transportation, during which a
stopover does not occur; there may be multiple one-way trips on the same
air travel itinerary.
    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.
    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.
    Stopover means a break in travel of more than:

[[Page 281]]

    (1) Four (4) hours for continental interstate air transportation or
continental intrastate air transportation, and
    (2) Twelve (12) hours for non-continental interstate air
transportation, non-continental intrastate air transportation, or
foreign air transportation.

[66 FR 67701, Dec. 31, 2001, as amended at 68 FR 49720, Aug. 19, 2003;
79 FR 35473, June 20, 2014]



Sec. 1510.5  Imposition of security service fees.

    (a) Each direct air carrier and foreign air carrier described in
Sec. 1510.9(a) shall impose a security service fee of $5.60 per one-way
trip for air transportation originating at an airport in the United
States. Passengers may not be charged more than $5.60 per one-way trip.
    (b) 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.

[79 FR 35473, June 20, 2014]



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 on--
    (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 12:00 a.m. (Eastern
Daylight Time) on July 21, 2014. The security service fee must be based
on the air travel itinerary at the time the air transportation is sold.
Any changes by the passenger to the itinerary are subject to additional
collection or refund of the security service fee by the direct air
carrier or foreign air carrier, as appropriate.
    (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.

[66 FR 67701, Dec. 31, 2001, as amended at 79 FR 35473, June 20, 2014]



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

[[Page 282]]

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 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

[[Page 283]]

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 collectible 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 [Reserved]
1511.11 Federal oversight.
1511.13 Enforcement.
1511.15 Cessation of the Aviation Security Infrastructure Fee.

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.
    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

[[Page 284]]

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.



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]

[[Page 285]]



Sec. 1511.9  [Reserved]



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 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 collectible pursuant to 31 U.S.C. Chapter 37 and the Department
of Transportation's implementing regulations at 49 CFR part 89.



Sec. 1511.15  Cessation of the Aviation Security Infrastructure Fee.

    Notwithstanding 49 CFR 1511.5 and 1511.7, or any other provision of
this part, beginning 11:59 p.m. (Eastern Daylight Time) on September 30,
2014, an air carrier or foreign air carrier engaged in air
transportation will not incur any further obligations to make payments
to TSA that otherwise would be required under this part. Any unremitted
Aviation Security Infrastructure Fees incurred by an air carrier or
foreign air carrier before 11:59 p.m. (Eastern Daylight Time) on
September 30, 2014, are due by October 31, 2014.

[79 FR 56668, Sept. 23, 2014]



   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

[[Page 286]]

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 287]]

[GRAPHIC] [TIFF OMITTED] TR20FE02.007


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                            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 291]]

    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 292]]

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] TR20FE02.012



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 295]]

    (2) 49 CFR part 1540, subpart C, which includes individuals engaged
in air cargo operations who work for certain aircraft operators, foreign
air carriers, indirect air carriers (IACs), or certified cargo screening
facilities.
    (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;
76 FR 51867, Aug. 18, 2011]



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 296]]

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 297]]

    (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 298]]

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, IACs, or certified cargo screening facilities, 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.
    (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 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

[[Page 299]]

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, or certified cargo
screening facilities.

[72 FR 3588, Jan. 25, 2007, as amended at 74 FR 47695, Sept. 16, 2009;
76 FR 51867, Aug. 18, 2011]



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, or certified
cargo screening facilities 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.
    (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.

[[Page 300]]

    (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.
    (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

[[Page 301]]

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 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; 76 FR 51867, Aug. 18, 2011]

[[Page 303]]



       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 304]]

    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 305]]

    (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 306]]

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 307]]

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; and each certified cargo screening facility and its personnel, as
described in 49 CFR part 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; 76 FR 51867, Aug.
18, 2011]



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

[[Page 308]]

    (2) Inform the sender of the record that the record must be marked
as specified in Sec. 1520.13.
    (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,

[[Page 309]]

public disclosure is governed by 5 U.S.C. 552 and 49 CFR parts 15 and
1520.

    (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

[[Page 310]]

records containing documentation of a Federal agency's policies,
decisions, 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.

[[Page 311]]



                  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 312]]

    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 313]]

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 314]]



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 315]]

    (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 316]]

    (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 317]]

    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 318]]



                  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, and certified
cargo screening facilities must use to have security threat assessments
performed on certain individuals pursuant to 49 CFR 1544.228, 1546.213,
1548.7, 1548.15, 1548.16 and 1549.111. 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.
    (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, and a certified cargo screening facility described in paragraph
(a)(6) 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.

[74 FR 47700, Sept. 16, 2009, as amended at 76 FR 51867, Aug. 18, 2011]



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) Cargo personnel in the United States, as described in Sec.
1544.228.
    (2) Cargo personnel in the United States, as described in Sec.
1546.213.
    (3) Individuals with unescorted access to cargo, as described in
Sec. 1548.15.
    (4) Proprietors, general partners, officers, directors, and owners
of an indirect air carrier, as described in Sec. 1548.16.
    (5) 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.
    (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

[[Page 319]]

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 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

[[Page 320]]

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.

[74 FR 47700, Sept. 16, 2009, as amended at 76 FR 51867, Aug. 18, 2011]



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 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

[[Page 321]]

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 this 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, or certified cargo screening facility 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.

[74 FR 47700, Sept. 16, 2009, as amended at 76 FR 51867, Aug. 18, 2011]



 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 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

[[Page 322]]

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.



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.

[[Page 323]]

                   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.
    (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

[[Page 324]]

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 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]

[[Page 325]]

    (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.
    (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.

[[Page 326]]

    (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.
    (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

[[Page 327]]

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 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

[[Page 328]]

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 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

[[Page 329]]

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.
    (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

[[Page 330]]

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, 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;

[[Page 331]]

    (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.
    (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 332]]

    (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 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.

[[Page 333]]

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 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.

[[Page 334]]

    (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 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

[[Page 335]]

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 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.

[[Page 336]]

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.
    (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--

[[Page 337]]

    (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 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.

[[Page 338]]

    (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.
    (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.

[[Page 339]]

    (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.



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

[[Page 340]]

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.
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.

[[Page 341]]



                            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 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

[[Page 342]]

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, 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,

[[Page 343]]

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.
    (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.

[[Page 344]]

    (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 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 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

[[Page 345]]

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.

[67 FR 8353, Feb. 22, 2002, as amended at 76 FR 51867, Aug. 18, 2011]



                          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.
    (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.

[[Page 346]]



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 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

[[Page 347]]

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, by another aircraft operator or
foreign air carrier operating under a security program under this
chapter with a comparable cargo security program, by a certified cargo
screening facility in accordance with 49 CFR part 1549, or by TSA.
    (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;
76 FR 51867, Aug. 18, 2011; 76 FR 53080, Aug. 25, 2011]



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.
    (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.

[[Page 348]]

    (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 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

[[Page 349]]

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 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

[[Page 350]]

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 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.

[[Page 351]]

    (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 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

[[Page 352]]

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--
    (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--

[[Page 353]]

    (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 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

[[Page 354]]

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]



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

[[Page 355]]

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--
    (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

[[Page 356]]

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.
    (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;

[[Page 357]]

    (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 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

[[Page 358]]

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.
    (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.

[[Page 359]]

    (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 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

[[Page 360]]

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--
    (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

[[Page 361]]

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
    (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

[[Page 362]]

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 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]

[[Page 363]]



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 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.

[[Page 364]]



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:
    (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

[[Page 365]]

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 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]

[[Page 366]]



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.



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.

[[Page 367]]

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;
    (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;

[[Page 368]]

    (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
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:

[[Page 369]]

    (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. 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.

[[Page 370]]

    (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 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.

[[Page 371]]

    (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, by another aircraft operator or
foreign air carrier operating under a security program under this
chapter with a comparable cargo security program, by a certified cargo
screening facility in accordance with 49 CFR part 1549, or by TSA.
    (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;
76 FR 51868, Aug. 18, 2011; 76 FR 53081, Aug. 25, 2011]



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 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

[[Page 372]]

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.
    (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

[[Page 373]]

    (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:
    (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

[[Page 374]]

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]



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]

[[Page 375]]



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).
    (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

[[Page 376]]

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 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

[[Page 377]]

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 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

[[Page 378]]

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.
    (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.

[[Page 379]]

    (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 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

[[Page 380]]

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.
    (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

[[Page 381]]

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.
    (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

[[Page 382]]

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 indirect 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 indirect air carrier 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, as amended at 76 FR 51868, Aug. 18, 2011]



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,
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.

[[Page 383]]

    (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.
    (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:

[[Page 384]]

    (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 a certified 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 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.

[[Page 385]]



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.
    (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

[[Page 386]]

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 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 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 an assessment by TSA,
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 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 TSA prior
to the first day of the 36th anniversary month of initial approval of
its security program.

[[Page 387]]

    (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:
    (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

[[Page 388]]

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.

[74 FR 47706, Sept. 16, 2009, as amended at 76 FR 51868, Aug. 18, 2011]



                          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 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.

[[Page 389]]



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 certified
cargo screening facility or is no longer acting as the facility's agent.
    (2) Copies of all documents related to applications for, or renewals
of, TSA certification to operate under part 1549.
    (3) Documents establishing TSA's certification and renewal of
certification as required by part 1549.

[[Page 390]]

    (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.

[74 FR 47706, Sept. 16, 2009, as amended at 76 FR 51868, Aug. 18, 2011]



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:
    (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

[[Page 391]]

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.



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

[[Page 392]]

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 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

[[Page 393]]

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--
    (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

[[Page 394]]

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
    (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--

[[Page 395]]

    (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 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:

[[Page 396]]

    (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 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--

[[Page 397]]

    (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.
    (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

[[Page 398]]

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 1554_AIRCRAFT REPAIR STATION SECURITY--Table of Contents



                            Subpart A_General

Sec.
1554.1 Scope.
1554.3 TSA inspection authority.

                       Subpart B_Security Measures

1554.101 Security Measures.
1554.103 Security Directives.

                  Subpart C_Compliance and Enforcement

1554.201 Notification of security deficiencies; suspension of
          certificate and review process.
1554.203 Immediate risk to security; revocation of certificate and
          review process.
1554.205 Nondisclosure of certain information.

    Authority: 49 U.S.C. 114, 40113, 44903, 44924.

    Source: 79 FR 2140, Jan. 13, 2014, unless otherwise noted.



                            Subpart A_General



Sec. 1554.1  Scope.

    (a) This part applies to repair stations that are certificated by
the Federal Aviation Administration (FAA) pursuant to 14 CFR part 145,
except for a part 145 certificated repair station located on a U.S. or
foreign government military installation.
    (b) In addition to the terms in 49 CFR 1500.3 and 1540.5, for
purposes of this part, ``large aircraft'' means any aircraft with a
maximum certificated takeoff weight of more than 12,500 pounds and
``attended'' aircraft means an aircraft to which access is limited to
authorized individuals and property.

[[Page 399]]



Sec. 1554.3  TSA inspection authority.

    (a) General. Each repair station must allow TSA and other authorized
DHS officials, at any time and in a reasonable manner, without advance
notice, to enter, conduct any audits, assessments, or inspections of any
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 security;
    (2) Enforce security-related regulations, directives, and
requirements;
    (3) Inspect, assess, and audit security facilities, equipment, and
systems
    (4) Ensure the adequacy of security measures;
    (5) Verify the implementation of security measures;
    (6) Review security plans; and
    (7) Carry out such other duties, and exercise such other powers,
relating to transportation security as the TSA Administrator considers
appropriate, to the extent authorized by law.
    (b) Evidence of compliance. At the request of TSA, each repair
station must provide evidence of compliance with this part, including
copies of records required by this part.
    (1) All records required under this part must be provided in English
upon TSA's request.
    (2) All responses and submissions provided to TSA or its designee,
pursuant to this part, must be in English, unless otherwise requested by
TSA.
    (c) Access to repair station. (1) TSA and DHS officials working with
TSA may enter, and be present within any area without access media or
identification media issued or approved by the repair station in order
to inspect, assess, or perform any other such duties as TSA may direct.
    (2) Repair stations may request TSA inspectors and DHS officials
working with TSA to present their credentials for examination, but the
credentials may not be photocopied or otherwise reproduced.



                       Subpart B_Security Measures



Sec. 1554.101  Security Measures.

    (a) Applicability of this section. This section applies to part 145
certificated repair stations located--
    (1) On airport. On an air operations area or security identification
display area of an airport covered by an airport security program under
49 CFR part 1542 in the United States, or on the security restricted
area of any commensurate airport outside the United States regulated by
a government entity; or
    (2) Adjacent to an airport. Adjacent to an area of the airport
described in paragraph (a)(1) of this section if there is an access
point between the repair station and the airport of sufficient size to
allow the movement of large aircraft between the repair station and the
area described in paragraph (a)(1) of this section.
    (b) Security Measures. Each repair station described in paragraph
(a) of this section must carry out the following measures:
    (1) Provide TSA with the name and means of contact on a 24-hour
basis of a person or persons designated by the repair station with
responsibility for--
    (i) Compliance with the regulations in this part;
    (ii) Serving as the primary point(s) of contact for security-related
activities and communications with TSA;
    (iii) Maintaining a record of all employees responsible for
controlling keys or other means used to control access to aircraft
described in paragraph (b)(2) of this section; and
    (iv) Maintaining all records necessary to comply with paragraph
(b)(3) of this section.
    (2) When not attended, prevent the unauthorized operation of all
large aircraft capable of flight, by using one or more of the means
listed in paragraphs (b)(2)(i) through (iv) of this section. In these
examples, a key, if used, must only be available to an individual
authorized by the repair station who has successfully undergone a check
as described in paragraph (b)(3) of this section.
    (i) Block the path of the aircraft such that it cannot be moved, and
control

[[Page 400]]

the vehicle key if a vehicle is used to block the path.
    (ii) Park the aircraft in a locked hangar and control the key to the
hangar.
    (iii) Move stairs away from the aircraft and shut and, if feasible,
lock all cabin and/or cargo doors, and control the key.
    (iv) Other means approved in writing by TSA.
    (3) Verify background information of those individuals who are
designated as the TSA point(s) of contact and those who have access to
any keys or other means used to prevent the operation of large aircraft
described in paragraph (b)(2) of this section by one or more of the
following means:
    (i) Verify an employee's employment history. The repair station
obtains the employee's employment history for the most recent five year
period or the time period since the employee's 18th birthday, whichever
period is shorter. The repair station verifies the employee's employment
history for the most recent 5-year period via telephone, email, or in
writing. If the information is verified telephonically, the repair
station must record the date of the communication and with whom the
information was verified. If there is a gap in employment of six months
or longer, without a satisfactory explanation of the gap, employment
history is not verified. The repair station must retain employment
history verification records for at least 180 days after the
individual's employment ends. The repair station must maintain these
records electronically or in hardcopy, and provide them to TSA upon
request.
    (ii) Confirm an employee holds an airman certificate issued by the
Federal Aviation Administration.
    (iii) Confirm an employee of a repair station located within the
United States has obtained a security threat assessment or comparable
security threat assessment pursuant to part 1540, subpart C of this
chapter, such as by holding a SIDA identification media issued by an
airport operator that holds a complete program under 49 CFR part 1542.
    (iv) Confirm an employee of a repair station located outside the
United States has successfully completed a security threat assessment
commensurate to a security threat assessment described in part 1540,
subpart C of this chapter.
    (v) Other means approved in writing by TSA.



Sec. 1554.103  Security Directives.

    (a) General. 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) Compliance. Each repair station must comply with each Security
Directive TSA issues to the repair station within the time prescribed.
Each repair station that receives a Security Directive must--
    (1) Acknowledge receipt of the Security Directive as directed by
TSA;
    (2) Specify the method by which security measures have been or will
be implemented to meet the effective date; and
    (3) Notify TSA to obtain approval of alternative measures if the
repair station is unable to implement the measures in the Security
Directive.
    (c) Availability. Each repair station that receives a Security
Directive and each person who receives information from a Security
Directive must--
    (1) Restrict the availability of the Security Directive and the
information contained in the document to persons who have an operational
need to know; and
    (2) Refuse to release the Security Directive or the information
contained in the document to persons other than those who have an
operational need to know without the prior written consent of TSA.
    (d) Comments. Each repair station 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.

[[Page 401]]



                  Subpart C_Compliance and Enforcement



Sec. 1554.201  Notification of security deficiencies; suspension of
certificate and review process.

    (a) General. A repair station may be subject to suspension of its
FAA certificate, if security deficiencies are identified and are not
corrected.
    (b) Notice of security deficiencies. TSA provides written
notification to a repair station and to the FAA of any security
deficiency identified by TSA.
    (c) Response. A repair station must provide TSA with a written
explanation in English of all efforts, methods, and procedures used to
correct the security deficiencies identified by TSA within 45 calendar
days of receipt of the written notification described in paragraph (b)
of this section.
    (d) Suspension of certificate. If the repair station does not
correct security deficiencies within 90 calendar days of the repair
station's receipt of the written notice of security deficiencies, or if
TSA determines that the security deficiencies have not been addressed
sufficiently to comply with this section, the TSA designated official
will provide written notification to the repair station and to the FAA
that the repair station's certificate must be suspended. The
notification will include an explanation of the basis for the
suspension. The suspension remains in effect until TSA determines that
the security deficiencies have been corrected.
    (e) Petition for reconsideration. The repair station may petition
TSA to reconsider its determination under paragraph (d) of this section
by serving a petition for reconsideration no later than 20 calendar days
after the repair station receives the notification. The repair station
must serve the petition on the TSA designated official. Submission of a
petition for reconsideration will not automatically stay the suspension.
The repair station may request TSA to notify the FAA to stay the
suspension pending review of and decision on the petition. The petition
must be in writing, in English, signed by the repair station operator or
owner, and include--
    (1) A statement that reconsideration is requested; and
    (2) A response to the suspension, including any information TSA
should consider in reviewing the suspension.
    (f) Review by the TSA designated official. The TSA designated
official will consider all relevant material and information and will
act on the petition no later than 15 calendar days after TSA receives
the petition. The TSA designated official will either notify the repair
station and the FAA that the suspension be withdrawn or affirm the
suspension. The decision of the TSA designated official constitutes a
final agency order subject to judicial review in accordance with 49
U.S.C. 46110.
    (g) Service of documents. Service may be accomplished by personal
delivery, certified mail, or express courier. Documents served on a
repair station will be served at its official place of business.
Documents served on TSA must be served at the address contained in the
written notice of suspension.
    (1) A certificate of service may be attached 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) 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.
    (h) Extension of time. TSA may grant an extension of time to the
limits set forth in this section for good cause shown. A repair station
must request 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 402]]



Sec. 1554.203  Immediate risk to security; revocation of certificate and
review process.

    (a) Notice. The TSA designated official will determine whether any
repair station poses an immediate risk to security. If such a
determination is made, TSA will provide written notification of its
determination to the repair station and to the FAA that the certificate
must be revoked. The notification will include an explanation of the
basis for the revocation. TSA does not include classified information or
other information described in Sec. 1554.205.
    (b) Petition for reconsideration. The repair station may petition
TSA to reconsider its determination by serving a petition for
reconsideration no later than 20 calendar days after the repair station
receives the notification. The repair station must serve the petition on
the TSA designated official. Submission of a petition for
reconsideration will not automatically stay the revocation. The repair
station may request TSA to notify FAA to stay the revocation pending
review of and decision on the petition. The petition must be in writing,
in English, signed by the repair station operator or owner, and
include--
    (1) A statement that a review is requested; and
    (2) A response to the determination of immediate risk to security,
including any information TSA should consider in reviewing the basis for
the determination.
    (c) Review by the Administrator. The TSA designated official
transmits the petition together with all relevant information to the
Administrator for reconsideration. The Administrator will act on the
petition within 15 calendar days of receipt by either directing the TSA
designated official to notify FAA and the repair station that the
determination is rescinded and the certificate may be reinstated or by
affirming the determination. The decision by the Administrator
constitutes a final agency order subject to judicial review in
accordance with 49 U.S.C. 46110.
    (d) Service of documents. Service may be accomplished by personal
delivery, certified mail, or express courier. Documents served on a
repair station will be served at its official place of business.
Documents served on TSA must be served at the address contained in the
written notice of revocation.
    (1) A certificate of service may be attached 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) 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.
    (e) Extension of time. TSA may grant an extension of time to the
limits set forth in this section for good cause shown. A repair station
must request 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.



Sec. 1554.205  Nondisclosure of certain information.

    In connection with the procedures under this subpart, TSA does not
disclose classified information, as defined in Executive Order 12968,
section 1.1(d), or any successor order, and TSA reserves the right not
to disclose any other information or material not warranting disclosure
or protected from disclosure under law or regulation.



PART 1560_SECURE FLIGHT PROGRAM--Table of Contents



                            Subpart A_General

Sec.
1560.1 Scope, purpose, and implementation.

[[Page 403]]

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.



                            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

[[Page 404]]

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
    (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

[[Page 405]]

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.
    (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

[[Page 406]]

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.
    (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

[[Page 407]]

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:

    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.

[[Page 408]]

    (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-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

[[Page 409]]

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 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

[[Page 410]]

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 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.

[[Page 411]]

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 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.

[[Page 412]]

    (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;
    (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

[[Page 413]]

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 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.

[[Page 414]]

    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 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,

[[Page 415]]

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.
    (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.

[[Page 416]]

    (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 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.

[[Page 417]]

    (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.
    (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.

[[Page 418]]

    (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.
    (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.

[[Page 419]]

    (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 421]]



         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 422]]

    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 423]]

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 424]]

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 425]]

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 426]]

Threat Assessment Program, Transportation Security Administration, 601
South 12th Street, Arlington, VA 20598-6019.
    (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.

[72 FR 3595, Jan. 25, 2007, as amended at 77 FR 18717, Mar. 28, 2012]



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

[[Page 427]]

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
1572.11, 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

[[Page 428]]

    (4) Violates his or her immigration status, and/or is ordered
removed from the United States.
    (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;

[[Page 429]]

    (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 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

[[Page 430]]

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 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.

[[Page 431]]

    (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;
    (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.


[[Page 432]]


    (g) 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. 1572.19  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

[[Page 433]]

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 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

[[Page 434]]

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.



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.

[[Page 435]]

    (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 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;

[[Page 436]]

    (vii) L-1 Intracompany Executive Transfer;
    (viii) O-1 Extraordinary Ability;
    (ix) TN North American Free Trade Agreement;
    (x) E-2 Treaty Investor; or
    (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 437]]



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 438]]

    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 439]]

    (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) An individual who applies to obtain or
renew an HME, or the individuals' 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.
    (2) TSA shall publish the Threat Assessment Fee described in this
subpart for an individual who applies to obtain or renew and HME as a
Notice in the Federal Register. TSA reviews the amount of the fees
periodically, at least once every two years, to determine the current
cost of conducting security threat assessments. Fee amounts and any
necessary revisions to the fee amounts shall be determined by 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.
    (3) The FBI Fee required for the FBI to process fingerprint
identification records and name checks required under 49 CFR part 1572
is determined by the FBI under Public Law 101-515. If the FBI amends
this fee, the individual must remit the amended fee.
    (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.

[[Page 440]]

    (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 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.

[72 FR 3595, Jan. 25, 2007, as amended at 78 FR 24359, Apr. 25, 2013]



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) An individual who applies to obtain or
renew an HME, or the individuals' 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.
    (2) TSA shall publish the Information Collection Fee and Threat
Assessment Fee described in this subpart for an individual who applies
to obtain or renew an HME as a Notice in the Federal Register. TSA
reviews the amount of the fees periodically, at least once every two
years, to determine the current cost of conducting security threat
assessments. Fee amounts and any necessary revisions to the fee amounts
shall be determined by 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.
    (3) The FBI Fee required for the FBI to process fingerprint
identification records and name checks required under 49 CFR part 1572
is determined by the FBI under Public Law 101-515. If the FBI amends
this fee, TSA or its agent, will collect the amended fee.
    (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.

[[Page 441]]

    (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.

[72 FR 3595, Jan. 25, 2007, as amended at 78 FR 24359, Apr. 25, 2013]



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.



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 Fees. The fee to obtain or renew a TWIC, except as
provided in paragraphs (c) and (d) of this section, includes the
following segments:
    (1) The Enrollment Segment Fee covers the costs for TSA or its agent
to enroll applicants.
    (2) The Full Card Production/Security Threat Assessment Segment Fee
covers the costs for TSA or its agent to conduct a security threat
assessment and produce the TWIC.
    (3) The FBI Segment Fee covers the costs for the FBI to process
fingerprint identification records, and 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 Fee covers the costs for TSA or its agent
to enroll applicants.
    (2) The Reduced Card Production/Security Threat Assessment Segment
covers the costs for TSA to conduct a portion of the security threat
assessment and issue a TWIC.
    (d) Card Replacement Fee. The Card Replacement Fee covers the costs
for TSA to replace a TWIC when a TWIC holder reports that his/her TWIC
has been lost, stolen, or damaged.
    (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) Imposition of fees. TSA routinely establishes and collects fees
to conduct the security threat assessment and credentialing process.
These fees apply to all entities requesting a security threat assessment
and/or credential. The fees described in this section for an individual
who applies to obtain, renew, or replace a TWIC under 49 CFR part 1572,
shall be published as a Notice in the Federal Register. TSA reviews the
amount of these fees periodically, at least once every two years, to
determine the current cost of conducting security threat assessments.
Fee amounts and any necessary revisions to the fee amounts shall be
determined by current costs, using a method of analysis consistent with
widely-accepted accounting principles and practices, and calculated in
accordance with the

[[Page 442]]

provisions of 31 U.S.C. 9701 and other applicable Federal law.

[72 FR 3595, Jan. 25, 2007, as amended at 72 FR 55049, Sept. 28, 2007;
78 FR 24359, Apr. 25, 2013]



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.
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

[[Page 443]]

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 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

[[Page 444]]

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 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.

[[Page 445]]



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.
    (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.

[[Page 446]]

    (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 (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

[[Page 447]]

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.
    (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.

[[Page 448]]

    (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, 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

[[Page 449]]

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 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

[[Page 450]]

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.
    (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

[[Page 451]]

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.
    (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.

[[Page 452]]

    (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.
    (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.

[[Page 453]]


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.
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.


[[Page 454]]



 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.

                       PARTS 1581	1699 [RESERVED]

[[Page 455]]



                              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 457]]



                    Table of CFR Titles and Chapters




                     (Revised as of October 1, 2014)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
       III  Administrative Conference of the United States (Parts 
                300--399)
        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 2--199)
        II  Office of Management and Budget Guidance (Parts 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)
       VII  Agency for International Development (Parts 700--799)
      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 
                1800--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)

[[Page 458]]

       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
     XXXIV  Department of Education (Parts 3400--3499)
      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--199)
        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)

[[Page 459]]

    XXXIII  Overseas Private Investment Corporation (Parts 4300--
                4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)
    XXXVII  Federal Election Commission (Parts 4700--4799)
        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)
      XLIX  Federal Labor Relations Authority (Parts 5900--5999)
         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)
       LXX  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 8000--8099)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    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 9000--9099)
   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)

[[Page 460]]

    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
    LXXXVI  National Credit Union Administration (Parts 9600--
                9699)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
     XCVII  Council of the Inspectors General on Integrity and 
                Efficiency (Parts 9800--9899)
      XCIX  Military Compensation and Retirement Modernization 
                Commission (Parts 9900--9999)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 1--99)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         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)

[[Page 461]]

       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)
       XXV  Office of Advocacy and Outreach, Department of 
                Agriculture (Parts 2500--2599)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    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)

                    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)

[[Page 462]]

        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)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XIII  Nuclear Waste Technical Review Board (Parts 1300--
                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)
         X  Bureau of Consumer Financial Protection (Parts 1000--
                1099)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XII  Federal Housing Finance Agency (Parts 1200--1299)
      XIII  Financial Stability Oversight Council (Parts 1300--
                1399)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
       XVI  Office of Financial Research (Parts 1600--1699)
      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)

[[Page 463]]

               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)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--1199)
         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)

[[Page 464]]

                    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)

          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  Office of Workers' Compensation Programs, 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)

[[Page 465]]

                       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)
        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  Millennium 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)

[[Page 466]]

        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, 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)
        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)
        XV  Emergency Mortgage Insurance and Loan Programs, 
                Department of Housing and Urban Development (Parts 
                2700--2799) [Reserved]
        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) [Reserved]
       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)

[[Page 467]]

         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--End)

           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)

[[Page 468]]

         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)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Bureau of Safety and Environmental Enforcement, 
                Department of the Interior (Parts 200--299)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
         V  Bureau of Ocean Energy Management, Department of the 
                Interior (Parts 500--599)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)
       XII  Office of Natural Resources Revenue, Department of the 
                Interior (Parts 1200--1299)

                 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)
         X  Financial Crimes Enforcement Network, Department of 
                the Treasury (Parts 1000--1099)

[[Page 469]]

                      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)
    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 Improvement, 
                Department of Education (Parts 700--799)[Reserved]
            Subtitle C--Regulations Relating to Education

[[Page 470]]

        XI  National Institute for Literacy (Parts 1100--1199)
       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)
        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  U.S. Copyright Office, Library of Congress (Parts 
                200--299)
       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--199)
        II  Armed Forces Retirement Home (Parts 200--299)

                       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)

[[Page 471]]

        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)
      VIII  Gulf Coast Ecosystem Restoration Council (Parts 1800--
                1899)

          Title 41--Public Contracts and Property Management

            Subtitle A--Federal Procurement Regulations System 
                [Note]
            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)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
   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)
  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)
  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)

[[Page 472]]

                        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--599)
         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 400--999)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10099)

             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)
         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)

[[Page 473]]

       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)

                          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)

[[Page 474]]

        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)
        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 (Parts 5300--5399) 
                [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)

[[Page 475]]

        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 (Parts 1400--1499) 
                [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   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)

[[Page 477]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of October 1, 2014)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Administrative Conference of the United States    1, III
Advisory Council on Historic Preservation         36, VIII
Advocacy and Outreach, Office of                  7, XXV
Afghanistan Reconstruction, Special Inspector     22, LXXXIII
     General for
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              2, VII; 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
  Advocacy and Outreach, Office of                7, XXV
  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

[[Page 478]]

Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
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
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
Bureau of Ocean Energy Management, Regulation,    30, II
     and Enforcement
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazardous Investigation       40, VI
     Board
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
Council of the Inspectors General on Integrity    5, XCVIII
     and Efficiency
Court Services and Offender Supervision Agency    5, LXX
     for the District of Columbia
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               2, XIII; 44, IV; 50, VI
  Census Bureau                                   15, I
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  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
  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 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 Financial Protection Bureau              5, LXXXIV; 12, X
Consumer Product Safety Commission                5, LXXI; 16, 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    5, LXX; 28, VIII
     for the District of Columbia
Customs and Border Protection                     19, I

[[Page 479]]

Defense Contract Audit Agency                     32, I
Defense Department                                2, XI; 5, XXVI; 32, 
                                                  Subtitle A; 40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  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
  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          5, LXX; 28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          2, XXXIV; 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                             2, IX; 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                2, Subtitle A; 5, III, 
                                                  LXXVII; 14, VI; 48, 99

[[Page 480]]

  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  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                       5, XXXVII; 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                 5, XIV, XLIX; 22, XIV
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
Financial Crimes Enforcement Network              31, X
Financial Research Office                         12, XVI
Financial Stability Oversight Council             12, XIII
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
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

[[Page 481]]

Forest Service                                    36, II
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  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
Gulf Coast Ecosystem Restoration Council          40, VIII
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; 8, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection                   19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  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 Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII

[[Page 482]]

Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
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, XV
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department                               2, XIV
  American Indians, Office of the Special         25, VII
       Trustee
  Bureau of Ocean Energy Management, Regulation,  30, II
       and Enforcement
  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
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Natural Resource Revenue, Office of             30, XII
  Ocean Energy Management, Bureau of              30, V
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  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 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, XXVIII; 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
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V

[[Page 483]]

  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  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
  Office of Workers' Compensation Programs        20, VII
  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 Royalty Board                         37, III
  U.S. Copyright Office                           37, II
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
Military Compensation and Retirement              5, XCIX
     Modernization Commission
Millennium Challenge Corporation                  22, XIII
Mine Safety and Health Administration             30, I
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   2, XXII; 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              5, LXXXVI; 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
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI

[[Page 484]]

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
  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
Natural Resource Revenue, Office of               30, XII
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
Ocean Energy Management, Bureau of                30, V
Offices of Independent Counsel                    28, VI
Office of Workers' Compensation Programs          20, VII
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                                       2, XXXVII; 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, 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
Privacy and Civil Liberties Oversight Board       6, X
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

[[Page 485]]

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
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
State Department                                  2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
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
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                   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
  Financial Crimes Enforcement Network            31, X
  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
[[Page 486]]

United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
U.S. Copyright Office                             37, II
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       2, VIII; 38, I
  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 487]]

                                     

                                     



                           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 489]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations (CFR) that 
were made by documents published in the Federal Register since January 
1, 2009 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, parts and 
subparts as well as sections for revisions.
For changes to this volume of the CFR prior to this listing, consult the 
annual edition of the monthly List of CFR Sections Affected (LSA). The 
LSA is available at www.fdsys.gov. For changes to this volume of the CFR 
prior to 2001, see the ``List of CFR Sections Affected, 1949-1963, 1964-
1972, 1973-1985, and 1986-2000'' published in 11 separate volumes. The 
``List of CFR Sections Affected 1986-2000'' is available at 
www.fdsys.gov.

                                  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
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

[[Page 490]]

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

49 CFR
                                                                   75 FR
                                                                    Page
Chapter XII
1503.629 (d) revised...............................................58333
1503.631 (c)(2) amended............................................58334
1503.659 (e) revised...............................................58334

                                  2011

49 CFR
                                                                   76 FR
                                                                    Page
Chapter XII
1503 Authority citation revised....................................22630
1503.1--1503.3 (Subpart A) Added...................................22630
1515.1 (a)(2) revised..............................................51867
    Regulation at 76 FR 51867 comment period extended to 10-31-11 
                                                                   60755
1515.9 (c)(1)(v) removed; (a)(3) and (f)(3) revised................51867
    Regulation at 76 FR 51867 comment period extended to 10-31-11 
                                                                   60755
1515.11 (a)(3) revised.............................................51867
    Regulation at 76 FR 51867 comment period extended to 10-31-11 
                                                                   60755
1520.7 (b) revised.................................................51867
    Regulation at 76 FR 51867 comment period extended to 10-31-11 
                                                                   60755
1522 Removed.......................................................51867
    Regulation at 76 FR 51867 comment period extended to 10-31-11 
                                                                   60755
1540.201 (a)(10), (11) and (12) removed; (a) introductory text 
        revised; (b) amended.......................................51867
    Regulation at 76 FR 51867 comment period extended to 10-31-11 
                                                                   60755
1540.203 (a)(1) removed; (a)(2) through (6) redesignated as new 
        (a)(1) through (5).........................................51867
    Regulation at 76 FR 51867 comment period extended to 10-31-11 
                                                                   60755
1540.209 Introductory text and (c)(1) revised......................51867
    Regulation at 76 FR 51867 comment period extended to 10-31-11 
                                                                   60755
1544.105 (a) introductory text revised.............................51867
    Regulation at 76 FR 51867 comment period extended to 10-31-11 
                                                                   60755
1544.205 (g)(3) revised............................................51867
    (g)(3) corrected...............................................53080
    Regulation at 76 FR 51867 comment period extended to 10-31-11 
                                                                   60755
1546.205 (g)(3) revised............................................51868
    (g)(3) corrected...............................................53081
    Regulation at 76 FR 51868 comment period extended to 10-31-11 
                                                                   60755
1548.15 (a) revised................................................51868
    Regulation at 76 FR 51868 comment period extended to 10-31-11 
                                                                   60755
1549.7 (a)(2)(ii), (3)(ii), (5) and (b)(2) revised.................51868
    Regulation at 76 FR 51868 comment period extended to 10-31-11 
                                                                   60755
1549.105 (a)(2) revised............................................51868
    Regulation at 76 FR 51868 comment period extended to 10-31-11 
                                                                   60755

[[Page 491]]

                                  2012

49 CFR
                                                                   77 FR
                                                                    Page
Chapter X
1244 Policy statement..............................................15969
Chapter XII
1572 Exemption.....................................................36406
1572.5 (e)(2) amended..............................................18717

                                  2013

49 CFR
                                                                   78 FR
                                                                    Page
Chapter X
1241.11 (b) added..................................................51083
Chapter XII
1572.403 (a) revised...............................................24359
1572.405 (a) revised...............................................24359
1572.501 (b), (c)(1), (2), (d) and (g) revised.....................24359

                                  2014

  (Regulations published from January 1, 2014, through October 1, 2014)

49 CFR
                                                                   79 FR
                                                                    Page
Chapter X
1333 Added.........................................................21412
    Regulation at 79 FR 21412 confirmed............................38254
Chapter XII
1510 Technical correction..........................................36432
1510.1 Revised; interim............................................35472
1510.3 Amended; interim............................................35473
1510.5 Revised; interim............................................35473
1510.9 (a) and (b) revised; interim................................35473
1511.9 Removed.....................................................56668
1511.15 Added......................................................56668
1554 Added..........................................................2140


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