Mr. WILLIAMS of New Jersey, from the Committee on Banking and Currency, submitted the following REPORT together with INDIVIDUAL VIEWS [To accompany S. 3154] The Committee on Banking and Currency, to which was referred the bill (S. 3154) to provide long-term financing for expanded urban public transportation programs, and for other purposes, having considered the same, reports favorably thereon with amendments and recommends that the bill do pass. INTRODUCTION This committee has exercised continuous primary jurisdiction over the urban mass transportation program for more than a decade. In 1960, the committee reported favorably a mass transportation bill, S. 3278, which was considered and passed by the Senate but failed of enactment. In 1961, however, in recognition of the urgent need of local communities for assistance in meeting the crisis of disappearing transit systems and seriously deteriorating services, the committee included, in the Housing Act of that year, an emergency urban transportation loan program. A small fund to finance demonstrations and tests of mass transportation improvements was also authorized. At the time the understanding was explicit that the 1961 program was temporary pending further study by the administration and the development of a long-range plan for comprehensive Federal assistance. In his transportation message of 1962, the President proposed a major program of Federal assistance for urban mass transportation based upon the findings and conclusions of the study which was undertaken jointly by the then Housing and Home Finance Agency (HUD) and the Department of Commerce. After extended hearings and further study, the committee reported a bill, S. 3615, for the consideration of the Senate, but no further action was taken during the second session of the 87th Congress. However, the temporary program established in 1961 was extended from December 31, 1962, until June 30, 1963 (Public Law 87-809). In the spring of 1963 further hearings were held by the committee and on March 28, 1963, the committee again favorably reported a bill which would establish a major program of Federal assistance for urban mass transportation improvements (S. 6). Ultimately, this bill became the Urban Mass Transportation Act of 1964. This legislation authorized a 3-year program of loans and grants for capital improvements, and a program of research, development, and demonstrations. It was subsequently twice amended to provide additional authorizations for the fiscal years 1967, 1968, and 1969 (Public Law 89-562 approved September 8, 1966) and for the fiscal year 1970 (Public Law 90-448 approved August 1, 1968). In all $865 million has been authorized under this program and $795 million has been appropriated. All but about $10 million of the appropriated funds have been obligated. Under the Urban Mass Transportation Act of 1964 funding has been provided 1 year in advance to permit orderly planning and local financial arrangements. To continue this arrangement in the absence of agreement on a new program, the committee included in the Housing and Urban Development Act of 1969 an additional authorization of $300 million for urban mass transportation assistance for fiscal year 1971. As the 1964 program developed, the inadequacy of both amount and extent of Federal support for urban mass transportation became increasingly apparent. Several bills were introduced, respectively, by Senators Williams, Bennett, and Cranston which would establish a new program with considerably increased Federal financial support. On August 7, 1969, the President transmitted a special message to the Congress (H. Doc. 91-145) reaffirming the urgent need for a new Federal assistance program and summarizing the administration's legislative proposals. Extensive hearings were held by the committee on July 23, 24, and 29, October 14, 15, and 16, and November 18, 1969. Throughout these bearings, witnesses representing the administration, the transit companies, and the States and local public agencies who are vitally interested in maintaining and improving public transportation, have spoken with one voice as to objectives: (1) A much higher level of program effort and (2) a longer timespan to give local communities the substantial assurance of continuing Federal support that they need if they are to carry out the arduous and time-consuming planning, decisionmaking, and funding process which must precede actual capital investments. Differences of opinion focused on the means of achieving these objectives. The committee bill, S. 3154, as amended, was developed as a result of conferences and agreements worked out with interested transit groups including representatives of mayors, private transit companies, and organized labor and has the full support of the administration. The financing feature, which was the most difficult provision of the bill on which to get agreement, was worked out with the administration largely through the efforts of Senator Williams and Senator Tower. MAJOR FEATURES OF URBAN MASS TRANSPORTATION ASSISTANCE ACT OF 1969 The committee bill, S. 3154, is designed to provide long-term financing for expanded urban mass transportation programs. This would be accomplished by amendments to sections 3, 4, 5, and 15 of the Urban Mass Transportation Act of 1964. Section 1 of the proposed legislation, designated the "Urban Mass Transportation Assistance Act of 1969," states congressional findings of conditions in urban areas affecting the mobility of citizens that have created an urgent national problem; that new directions in Federal assistance programs for urban mass transportation are necessary; and that a Federal commitment to these programs of an additional $10 billion over a 12-year period is required. The major features of the bill are: ADVANCE ACQUISITION OF REAL PROPERTY A new program of maximum 10-year loans to States and local public bodies, and agencies thereof, would be authorized for the acquisition of real property reasonably expected to be required for urban mass transportation purposes, including the net cost of property management and relocation, within a reasonable period of time. Specifically, the acquired real property would be for rights-of-way, station sites, and related purposes, which include such ancillary facilities as terminals, maintenance, and other buildings, as well as parking lots and access roads. Upon a determination that acquired real property will not be used for urban mass transportation purposes within the 10-year period, the Federal Government and the State or local public body would share on a 2-to-1 basis in any increase in value over the cost of acquisition as determined by the appraised value of the real property. The Federal Government would not share in any losses. Acquisition of real property in advance of construction has become increasingly important as urban land becomes an increasingly scarce resource. Where there is public knowledge of planned mass transportation improvements requiring land acquisition, speculators can acquire quick possession of key tracts and greatly increase public costs. This is especially true where planned improvements involve vacant tracts in urban areas which offer the greatest economy and least displacement if they can be timely acquired and reserved for later mass transportation development. FEDERAL FINANCIAL ASSISTANCE The proposed legislation would establish a new program for the fiscal years following the final year of appropriation authorizations in the Urban Mass Transportation Act of 1964. It would provide contract authority in the maximum amount of $3.1 billion for sub |