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From page 17... ... Multi-State Freight Transportation Organizations 3-1 3.0 Understanding the Legal Framework of Multi-State Organizations As changes in the economy create a demand for new and better freight corridors and smoother transitions between modes, stronger institutions that by design have a proper perspective on these issues and the power to implement desired outcomes will be needed to ensure a more efficient and competitive freight system. This section examines the legal issues associated with establishing a multi-state freight organization having the authority to implement improvements to the freight transportation system and coordinating operations across jurisdictional lines. Read the entire page →
From page 18... ... Multi-State Freight Transportation Organizations 3-2 3.1 MULTI-STATE FREIGHT ORGANIZATIONS ORGANIZED AND INCENTIVIZED PURSUANT TO FEDERAL GRANT CONDITION ADMINISTERED BY A FEDERAL PROJECT OFFICE Under the first of the three models, a multi-state freight organization could be established under federal legislation authorizing a multi-state freight program administered by a federal project office. The multi-state freight program might address a specific freight transportation system such as the National Highway System (including its intermodal connectors and intermodal transfer facilities) Read the entire page →
From page 19... ... Multi-State Freight Transportation Organizations 3-3 MPOs, however, do not have sufficient authority to oversee and operate a multistate freight system. Federal legislation to create a federal project office and implement multi-state freight organizations could be based on the MPO model, but modified to give freight organizations certain powers to carry out freightrelated policy, planning, capital investment, operations, and regulatory activities. Read the entire page →
From page 20... ... Multi-State Freight Transportation Organizations 3-4 aid directly (in relation to the overall Federal-Aid Highway Program, not in relation to their operational needs) , the grant condition is tied to the award of any federal-aid highway and federal transit fund in the urban area. Read the entire page →
From page 21... ... Multi-State Freight Transportation Organizations 3-5 benefits, costs, and risks of improvements to the freight system among and across states, an essential political function when freight investments in one state serve the interests located primarily in other states. The MPO model does not provide an entirely satisfactory precedent for handling this situation. Read the entire page →
From page 22... ... Multi-State Freight Transportation Organizations 3-6 interstate cooperation to address them.8 Since most of the specifics of an interstate compact are subject to negotiated agreement, the functions and powers of compacts vary widely from one instance to another. Some compacts create an organization and a full range of operational functions, while others simply provide agreements about how the states will work together. Read the entire page →
From page 23... ... Multi-State Freight Transportation Organizations 3-7 approved compact. The geographic district of the Port Authority and its roles and responsibilities are set forth in the compact. Read the entire page →
From page 24... ... Multi-State Freight Transportation Organizations 3-8 it got started, the Port Authority expanded its scope of activities to highway bridges and tunnels, a consolidated bus terminal in Manhattan, a containerized marine terminal, arterial highways, rail transit, the region's airports, and the World Trade Center. Its success inspired other multi-state organizations.10 • Balancing benefits, costs, and risks. Read the entire page →
From page 25... ... Multi-State Freight Transportation Organizations 3-9 Depending on the particular situation, obtaining such approvals can be potentially as lengthy and arduous a task as negotiating the original compact. There are options to make the process of establishing an interstate compact easier. Read the entire page →
From page 26... ... Multi-State Freight Transportation Organizations 3-10 The National Railroad Passenger Corporation, commonly known as Amtrak, may serve as a useful model for structural and organizational purposes. Congress created Amtrak in 1970 to avoid the threatened extinction of intercity passenger trains in the United States.13 Legislation creating Amtrak set forth its structure and powers and outlined "procedures under which Amtrak [would] Read the entire page →
From page 27... ... Multi-State Freight Transportation Organizations 3-11 legislation, Congress could provide that this entity have the power to enter into cooperative agreements with states to operate freight-related facilities, such as roads, inspection facilities, terminals, or access to terminals. Alternatively, or in addition to these activities, the corporation could carry out specific tasks on behalf of the states on a fee for services basis (or with the revenues collected from its operations) Read the entire page →
From page 28... ... Multi-State Freight Transportation Organizations 3-12 • Funding. If Congress provides by statute that the corporation be selfsustaining through the collection of fees or taxes (such as motor fuel taxes or vehicle-miles of travel fees) Read the entire page →
From page 29... ... Multi-State Freight Transportation Organizations 3-13 status. For purposes of diversity jurisdiction and access to federal courts, state-chartered corporations are "citizens" of up to two states: the state in which it is incorporated and the state in which it maintains its principal place of business. Read the entire page →
From page 30... ... Multi-State Freight Transportation Organizations 3-14 Table 3.1 Summary of Legal Frameworks for Multi-State Freight Transportation Organizations Model General Responsibilities and Requirements Legal Advantages and Opportunities Legal Obstacles and Challenges Examples Multi-State Freight Organizations organized Pursuant to Federal Grant Conditions Administered by a Federal Project Office • Congressional consent needed to operate on a multi-state basis under the U.S. Constitution • States required to create the authority to participate in the federal program • Implements federal law establishing the program, issues appropriate regulations and guidance for the program, monitors eligibility for grant funding, and provides general program oversight and assistance. Read the entire page →
From page 31... ... Multi-State Freight Transportation Organizations 3-15 Model General Responsibilities and Requirements Legal Advantages and Opportunities Legal Obstacles and Challenges Examples Multi-State Freight Organizations enabled as Federally Chartered Organizations • Power to enter into cooperative agreements with states (if provided by Congress) • Ability to carry out specific tasks on behalf of the states for a fee • Subject to the applicable laws of the state in which it conducts business and holds property • In the case of a federal corporation, federal law preempts state law • Functions like a service organization for implementing and operating freight transportation improvements • Provides flexibility but a set of defined activities is needed • Ability to pool funds with states and other entities to use for a common purpose • Chartering legislation can address inequities to avoid inefficient multi-party dispute over cost-sharing issues • Potentially easier to build consensus for federal corporation than to cobble together political will for other models • Explaining the role of the corporation might prove difficult or result in unpalatable legislative safeguards • Could be in competition with constituent states and federal government for revenue • Unable to exercise regulatory power because federally enabled corporation is not expressly governmental • Difficulty in sharing costs and benefits of a multijurisdictional system • Federally chartered corporation often receives less favorable jurisdictional treatment in court • National Railroad Passenger Corporation (Amtrak) Read the entire page →

From page 17...

... Multi-State Freight Transportation Organizations 3-1 3.0 Understanding the Legal Framework of Multi-State Organizations As changes in the economy create a demand for new and better freight corridors and smoother transitions between modes, stronger institutions that by design have a proper perspective on these issues and the power to implement desired outcomes will be needed to ensure a more efficient and competitive freight system. This section examines the legal issues associated with establishing a multi-state freight organization having the authority to implement improvements to the freight transportation system and coordinating operations across jurisdictional lines.